AGN Aegon Ltd

   By Ian Walker 
 

Dutch insurance firm Aegon N.V. (AGN.AE) on Thursday reported a 7% rise in underlying earnings before tax for the first quarter of 2016, which was below expectations.

The multinational life-insurance, pensions and asset-management company, headquartered in The Hague, said underlying earnings and net income for the first quarter were hurt by volatile financial markets, which also had an impact on its capital position.

The company's solvency II ratio, a measure of financial stability, stood at 155% on March 31. The solvency ratio is a measure of risk that an insurer faces on claims it can't absorb.

For the quarter ended March 31, underlying earnings before tax--which strips out exceptional and other one-time items--was 462 million euros ($527.6 million), compared with EUR432 million a year earlier. That compared with consensus estimates of EUR485 million, taken from the company's website, which was based on 13 analyst forecasts.

Net profit for the quarter fell 51% to EUR143 million, compared with consensus forecasts of EUR329 million.

The company previously set a 10% return-on-equity target by 2018. This is expected to be achieved by reducing annual operating expenses EUR200 million by the end of 2018, as well as an extra EUR50 million a year in investments in digital capabilities and expertise.

"By transforming our businesses we aim to become a more cost-effective organization, while continuing to grow and diversify our customer base across all our markets. This is leading to very strong deposits, especially in our fee-based retirement plan and asset management businesses," Chief Executive Alex Wynaendts said.

-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

May 12, 2016 02:03 ET (06:03 GMT)

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