THE HAGUE, the Netherlands,
November 9, 2017 /PRNewswire/ --
Net income increases by
31% driven by US
- Underlying earnings up by 20% to EUR 556
million reflecting favorable claims experience, higher fee
revenue as a result of favorable equity markets, and lower expenses
in US
- Gain from fair value items of EUR 159
million driven by positive real estate revaluations and
hedging gains in US
- Charge from assumption changes and model updates of
EUR 198 million caused by conversion
of the largest block of universal life business to a new model
- Higher underlying earnings, fair value items and realized gains
drive increase in net income to EUR 469
million
- Return on equity for the quarter increases to 8.9%
Record gross deposits driven by fee-based
business; outflows from contract discontinuances in
Mercer block
- Gross deposits increase by 65% to EUR 41
billion as a result of exceptionally strong asset management
and UK platform deposits; net outflows of EUR 0.6 billion
driven by lapses on retirement business acquired from Mercer
- New life sales decline by 8% to EUR 202
million due to lower sales in US and exit from UK
annuities
- Accident & health and general insurance sales down by 17%
to EUR 180 million from lower sales
in US
- Market consistent value of new business increases by 75% to
EUR 121 million benefiting from
management actions
Strong increase in Solvency II ratio to
195%
- Solvency II ratio increases by 10%-points compared with last
quarter to 195%. Capital generation and benefit from divestment of
UK annuity book more than offset interim 2017 dividend
- Capital generation of EUR 809
million including favorable market impacts and one-time
items of EUR 485 million
- Holding excess capital temporarily decreases to EUR 0.9 billion driven by capital injection into
Dutch business
- Gross financial leverage ratio improves by 20 basis points
sequentially to 29.2% as a result of retained earnings
Statement of Alex Wynaendts, CEO
"I am pleased that our underlying earnings are up for
the fifth consecutive quarter, reflecting growth across our
businesses, expense savings and management actions taken to improve
returns. We are also reporting strong net income, despite
charges related to assumption changes and model updates.
These were mainly driven by the completion of the
conversion of our largest block of universal life
business in the US to a new, more
dynamic model. This effectively concludes the
first phase of our model enhancement and validation
program covering all high impact models identified when the program
started in 2014.
Our strong capital position is a clear highlight this
quarter, with a significant increase in the group's
Solvency II ratio to 195%, which is now at the
upper end of the target range. This enables our businesses
to operate from a position of strength and underpins our target to
return EUR 2.1 billion of capital to
shareholders over the period 2016 to 2018.
The record gross deposits we generated this
quarter were driven by our key growth areas, such as asset
management and our digital platforms. By adapting to the evolving
needs of our customers, we are becoming more relevant throughout
their lives. This puts us in a strong position for continued
growth, and gives me confidence that we are taking the right steps
to achieve our ambitions."
Key performance indicators
EUR millions [13] Notes 3Q 2017 3Q 2016 % 2Q 2017 % YTD 2017 YTD 2016 %
Underlying earnings
before tax 1 556 461 20 535 4 1,578 1,359 16
Net income / (loss) 469 358 31 529 (11) 1,375 116 n.m.
Sales 2 4,451 2,904 53 3,937 13 12,331 9,229 34
Market consistent value
of new business 3 121 70 75 134 (10) 428 302 42
Return on equity 4 8.9% 7.7% 16 8.4% 7 8.2% 7.2% 13
Strategic highlights
- Aegon launches mutual fund joint venture in
Mexico
- Robot processes customer requests to
improve administrative efficiency in Dutch
business
- Aegon Asset Management receives top ratings
for responsible investment
- Launch of mobile- and user-friendly global careers
site
Aegon's ambition
Aegon's ambition is to be a trusted partner for financial solutions
at every stage of life, and to be recognized by its customers,
business partners and society as a company that puts the interests
of its customers first in everything it does. In addition, Aegon
wants to be regarded by its employees as an employer of choice,
engaging and enabling them to succeed. This ambition is supported
by four strategic objectives embedded in all Aegon businesses:
Optimized portfolio, Operational excellence, Customer loyalty, and
Empowered employees.
Optimized portfolio
Aegon has joined forces with Administradora Akaan to create the
mutual fund company Akaan Transamerica in Mexico. Akaan Transamerica recently received
formal approval from the Mexican Banking and Securities Commission
(CNBV) to initiate operations and go to market. It will offer a
wide variety of Mexican and international mutual funds, as well as
diversified global investment solutions, including alternative
investments, actively- and passively-managed funds, and bespoke
investment strategies. Akaan Transamerica will leverage the
extensive investment knowledge and experience from Transamerica
Asset Management's highly skilled team of investment management
professionals.
Aegon the Netherlands has entered into a four-year strategic
partnership with UK online lending platform Funding Circle. Direct
loans will be provided to small businesses online, with initial
plans to help approximately 2,600 small businesses with funding of
GBP 160 million in its first year of
the partnership. Using data analysis, Funding Circle is able to
assess a company's prospects and provide an immediate response
about a possible loan. The partnership offers Aegon strong returns,
while enabling small business owners to grow their businesses with
transparent funding.
In the Netherlands, Aegon has
entered into a strategic partnership with Dynamic Credit, an
Amsterdam-based alternative fixed
income asset manager. Under the agreement, Aegon will become a 25%
shareholder of Dynamic Credit. With over EUR
8 billion of assets under management, Dynamic Credit aims to
serve its customers by matching savings with credit investments. As
part of the partnership, Dynamic Credit's innovative LoanClear
platform will be upgraded and extended into an investment hub for
loans from marketplace lenders.
On November 1, 2017, Aegon
announced the successful completion of the sale of Unirobe Meeùs
Groep (UMG) to Aon Groep Nederland for EUR
295 million. The transaction is consistent with Aegon's
strategic objective to optimize its portfolio across its businesses
and is expected to result in an increase of the Solvency II ratio
of Aegon the Netherlands by an estimated 6%-points in the fourth
quarter of 2017. The divestment will also lead to a book gain of
approximately EUR 180 million, which
will be reported in Other income.
On September 22, 2017, Aegon
completed the Legal & General Part VII transfer related to the
divestment of the UK annuity book as announced last year. The
completion led to a 2%-points uplift of the group solvency ratio.
This transfer completes the divestment of Aegon's own annuity book
in the United Kingdom and is a
further milestone in the company's transformation.
Aegon received approval from the Polish Financial Supervision
Authority to take over the management of Nordea's second-pillar
pension fund. The takeover of the management of Nordea's pension
fund in combination with Aegon's existing fund will result in the
fourth largest second-pillar pension fund in Poland, with approximately EUR 3.5 billion of net assets and 1.9 million
pension customers. The larger pension fund will benefit from
economies of scale and improved investment opportunities, and will
share best practices for pension administration.
Operational excellence
In the Netherlands, Aegon is
now utilizing a robotic process to handle customer requests to
change addresses or bank account details for products that have
recurring premiums collected. Every day, Aegon receives more than
100 such requests, which previously meant manually updating
information across various systems. By using Robotics Process
Automation (RPA), 95% of all requests can be automatically
completed, with no manual intervention from employees. The RPA can
process these change requests quickly, with a notification
automatically sent to customers informing them the change has been
completed. Aegon is examining other opportunities to utilize the
RPA technology to streamline processes across its business.
Customer loyalty
Aegon's Chinese joint venture unveiled Zeus, an industry-leading
digital platform for agents, at the company's Digital Day. The
system, which is specifically designed for individual agents,
improves customer experience, and enhances traditional sales,
underwriting and administration processes.
Empowered employees
Management Board member Mark
Mullin, responsible for Aegon Americas, was appointed
Chairman of the Board for the American Council of Life Insurers
(ACLI), the most prominent association representing the life
insurance industry in the United
States. The ACLI represents 95% of all industry assets in
the United States, and advocates
on policy matters in federal, state and international forums. Mark
joined the Board of Directors of the ACLI seven years ago, and has
been active in advocating on behalf of the industry for the
retirement enhancement and savings act and the Department of Labor
fiduciary rule.
Aegon launched a new global careers site that enables potential
employees to identify career opportunities across Corporate Center,
Asset Management, Aegon Global Technology, the Netherlands and Transamerica in one easy
to use site. The site has a number of new features to help direct
top talent, including videos and testimonials from current Aegon
employees, an overview of the work environment, company history and
other information relevant to potential employees.
Financial overview
EUR millions Notes 3Q 2017 3Q 2016 % 2Q 2017 % YTD 2017 YTD 2016 %
Underlying
earnings before tax
Americas 376 307 22 341 10 1,029 860 20
Europe 177 151 17 195 (9) 541 481 12
Asia 14 6 125 11 35 37 8 n.m.
Asset Management 30 32 (7) 32 (6) 99 114 (13)
Holding and other (41) (35) (17) (43) 4 (128) (105) (23)
Underlying earnings
before tax 556 461 20 535 4 1,578 1,359 16
Fair value items 159 84 88 (191) n.m. (85) (632) 87
Realized gains /
(losses) on investments 135 21 n.m. 111 22 321 305 5
Net impairments 4 6 (26) 2 111 (5) (53) 91
Other income / (charges) (233) (72) n.m. 291 n.m. 64 (734) n.m.
Run-off businesses (3) 8 n.m. 10 n.m. 38 55 (30)
Income before tax 618 510 21 757 (18) 1,911 300 n.m.
Income tax (149) (152) 2 (228) 35 (536) (183) (192)
Net income / (loss) 469 358 31 529 (11) 1,375 116 n.m.
Net underlying earnings 412 349 18 390 6 1,152 1,012 14
Commissions and
expenses 1,435 1,638 (12) 1,648 (13) 4,749 4,971 (4)
of which
operating expenses 9 909 900 1 1,001 (9) 2,893 2,786 4
Gross deposits
(on and off balance) 10
Americas 8,062 9,375 (14) 9,288 (13) 30,185 32,112 (6)
Europe 9,604 2,769 n.m. 12,007 (20) 31,665 9,298 n.m.
Asia 54 83 (35) 48 12 175 250 (30)
Asset Management 22,971 12,442 85 13,492 70 47,469 36,040 32
Total gross deposits 40,691 24,669 65 34,835 17 109,495 77,700 41
Net deposits
(on and off balance) 10
Americas (11,929) (3,711) n.m. (2,052) n.m. (14,387) 1,058 n.m.
Europe 1,033 (41) n.m. 1,901 (46) 3,709 849 n.m.
Asia 35 69 (49) 31 13 120 208 (42)
Asset Management 10,365 1,380 n.m. 2,491 n.m. 6,596 4,666 41
Total net deposits
excluding run-off
businesses (496) (2,303) 78 2,372 n.m. (3,962) 6,781 n.m.
Run-off businesses (66) (237) 72 (75) 12 (307) (580) 47
Total net deposits /
(outflows) (563) (2,539) 78 2,297 n.m. (4,269) 6,201 n.m.
New life sales
Life single premiums 329 479 (31) 379 (13) 1,204 1,578 (24)
Life recurring premiums
annualized 169 171 (1) 186 (9) 551 571 (4)
Total recurring plus
1/10 single 202 219 (8) 224 (10) 672 729 (8)
New life sales 10
Americas 113 127 (11) 125 (9) 364 409 (11)
Europe 63 64 (1) 65 (2) 195 224 (13)
Asia 26 28 (8) 34 (23) 112 96 16
Total recurring plus
1/10 single 202 219 (8) 224 (10) 672 729 (8)
New premium production
accident and health
insurance 157 198 (21) 200 (22) 630 658 (4)
New premium production
general insurance 23 20 15 30 (24) 80 71 12
Revenue-generating investments
Sep. 30, Jun. 30, Dec. 31,
2017 2017 % 2016 %
Revenue-generating investments (total) 816,274 816,915 - 743,200 10
Investments general account 138,583 140,544 (1) 156,813 (12)
Investments for account of policyholders 197,075 198,278 (1) 203,610 (3)
Off balance sheet investments third parties 480,615 478,093 1 382,776 26
Operational highlights
Underlying earnings before tax
Aegon's underlying earnings before tax increased by 20% compared
with the third quarter of 2016 to EUR 556 million. This
increase was largely driven by a significant improvement in
underwriting results, higher fee revenue, expense savings and
favorable expense items. Favorable claims experience, favorable
expense items in the United
States, and positive one-time items amounted to
EUR 33 million.
Underlying earnings from the Americas increased by 22% to
EUR 376 million. A significant
improvement in claims experience, higher fee revenue from favorable
equity markets and lower expenses more than offset weakening of the
US dollar. Lower expenses resulted from favorable expense items of
approximately EUR 20 million and expense savings as part
of the five-part plan. Favorable claims experience this quarter of
EUR 21 million was mainly driven by seasonality in
supplemental health claims. The current quarter also included a
EUR 13 million negative adjustment to
intangible assets from lower reinvestment yields.
Underlying earnings from Aegon's operations in Europe increased by 17% to EUR 177 million. Higher fee revenue due to
favorable equity markets, an improvement in underwriting results in
all regions and a EUR 5 million
reserve release in the Dutch non-life business more than offset
lower investment income in the
Netherlands due to prepayments and interest rate resets on
mortgages.
Aegon's underlying earnings in Asia more than doubled to EUR 14 million. This increase was primarily
driven by the non-recurrence of charges related to reinvestment
yields in the High-Net-Worth (HNW) businesses, and favorable
persistency in China.
Underlying earnings from Aegon Asset Management declined by 7%
to EUR 30 million, as expense
reductions were more than offset by lower performance and
management fees as a result of lower asset balances due to a
contract loss and the divestment of the majority of the run-off
businesses.
The result from the holding declined by EUR 6 million to a loss of EUR 41 million, caused by higher project-related
expenses.
Net income
Net income increased by 31% compared with the third quarter of
last year to EUR 469 million, as
higher underlying earnings, fair value items and realized gains
more than offset an increase in other charges driven by the
conversion of the largest block of universal life business in
the United States to a new
model.
Fair value items
The gain from fair value items amounted to EUR 159 million. Positive real estate
revaluations in the Netherlands
and United States, hedging gains
in the United States, and a
positive result on the guarantee provision in the Netherlands together more than offset
losses in the United Kingdom and
the Netherlands on hedges in place
to protect Aegon's capital position.
Realized gains on investments
Realized gains totaled EUR 135
million, and were mainly related to the sale of an equity
investment in the United States, and gains on bonds to
optimize the general account investment portfolio in the
United Kingdom following the
divestment of the annuity book.
Impairment charges
Net recoveries amounted to EUR 4
million and reflect the continued benign credit
environment.
Other charges
Other charges amounted to EUR 233
million mainly as a result of the net impact of assumption
changes and model updates of EUR 198
million. In the United
States, these were mainly caused by the conversion of the
largest block of universal life business to a new model. The model
allows for modeling policyholder behavior and other assumptions on
a policy-by-policy basis. These charges were partly offset by the
net positive impact of assumption changes and model updates in
the Netherlands and Asia. The remaining other charges were driven
by the impairment of intangibles related to the announced sale of
Aegon Ireland of EUR 36 million
and integration and restructuring expenses of EUR 21 million. These were partly offset by other
items, including an expense reserve release related to the divested
annuity business following the completion of the Legal &
General Part VII transfer.
Run-off businesses
The run-off businesses reported a loss of EUR 3 million, which was in line with
expectations following the sale of the majority of the run-off
businesses in the second quarter of this year.
Income tax
Income tax amounted to EUR 149
million, which implies an effective tax rate for the third
quarter of 24%. The effective tax rate on underlying earnings was
26%.
Return on equity
Return on equity increased by 120 basis points compared with the
same quarter last year to 8.9% as a result of higher net underlying
earnings.
Operating expenses
Operating expenses increased by 1% compared with the third
quarter of 2016 to EUR 909 million as
a result of acquisitions in the United
Kingdom and an increase in integration and restructuring
expenses. Excluding the impact of these acquisitions, and
integration and restructuring expenses, operating expenses
decreased by 3% on a constant currency basis. This decrease
resulted from favorable expense items of approximately
EUR 20 million and expense savings. Aegon is well on
track to implement EUR 350 million of
expense savings by year-end 2018 as part of its plans to improve
the return on equity. Initiatives to reduce expenses have led to
annual run-rate expense savings of approximately EUR 170 million since the beginning of 2016.
Sales
Aegon's total sales in the third quarter of 2017 were up by 53%
to EUR 4.5 billion. This strong
increase was the result of a 65% increase in gross deposits to
EUR 40.7 billion, primarily driven by
exceptionally strong asset management deposits and strong
institutional platform sales in the United Kingdom, which can fluctuate. Asset
management gross deposits benefited from a large mandate win by
Aegon's strategic partner La Banque Postale Asset Management
(LBPAM), and increased sales in China and the
Netherlands. The latter reflects continued strong sales in
the Dutch mortgage fund and the inclusion of the first inflows from
general pension fund Stap, for which Aegon carries out the
fiduciary management. Net outflows amounted to EUR 0.6 billion, as high asset management inflows
and increased inflows on the platform in the United Kingdom were more than offset by net
outflows in the Americas as a result of contract discontinuances in
the retirement business acquired from Mercer, in line with earlier
guidance.
New life sales declined by 8% to EUR 202
million, which was mainly caused by lower term life and
indexed universal life sales in the
United States as a result of Aegon's focus on profitability,
and lower sales following the exit from UK annuities. This was only
partly offset by strong growth in Central & Eastern Europe, particularly in Turkey, and growth in Spain & Portugal, which was driven by the joint
ventures with Santander.
New premium production for accident & health and general
insurance decreased by 17% to EUR 180 million. Product exits
and lower supplemental health sales in the United States more than offset higher
travel insurance sales. Travel insurance sales are expected to
reduce significantly as of the first quarter of 2018 as part of the
earlier announced strategic decision to exit the Affinity, Direct
TV and Direct Mail distribution channels.
Market consistent value of new business
The market consistent value of new business (MCVNB) increased by
75% to EUR 121 million. The benefit
from management actions and higher interest rates more than offset
the exclusion of mortgage sales from the MCVNB calculation, the
exit from UK annuities, and lower life and accident & health
sales. No MCVNB is recognized on the majority of gross deposits,
particularly institutional inflows in the United Kingdom and Asset Management.
Revenue-generating investments
Revenue-generating investments remained stable compared with the
end of last quarter at EUR 816
billion. The takeover of the management of Nordea's
second-pillar pension fund in Poland and the favorable impact from higher
equity markets were offset by net outflows and adverse currency
movements.
Capital management
Shareholders' equity declined by EUR 0.3
billion to EUR 20.1 billion on
September 30, 2017, as retained
earnings were more than offset by weakening of the US dollar.
Shareholders' equity excluding revaluation reserves and defined
benefit plan remeasurements decreased by EUR
0.2 billion to EUR 16.9 billion - or EUR 8.04 per common share - at the end of the
third quarter. The gross leverage ratio improved by 20 basis points
to 29.2% as a result of retained earnings.
Holding excess capital decreased temporarily to EUR 0.9 billion following an injection of
EUR 1 billion into Aegon the
Netherlands to strengthen its capital position. Holding expenses,
the payment of the cash portion of the interim 2017 dividend and
other items led to cash outflows of EUR 224
million. These cash outflows were partly offset by a
EUR 357 million dividend from the United States, and EUR 20 million from Asset Management. The
redemption of EUR 500 million senior
unsecured notes on July 18, 2017, was
offset by the issuance of EUR 500
million 1-year senior notes at -16 basis points yield on
August 30, 2017.
In October 2017, Aegon's
subsidiary in the United Kingdom
upstreamed GBP 131 million to the
group based on its strong capital position and funded from the
capital release related to the divestment of its annuity portfolio.
Aegon UK expects to pay an additional dividend later in the fourth
quarter, which will bring the total 2017 capital upstream to the
group to GBP 150 million. Aegon
expects to receive additional dividends from other subsidiaries,
including from the United States,
in the fourth quarter. The capital upstreamed by the units will
more than offset the expected cash outflows from holding expenses
and the share buyback announced on September
28, 2017 to neutralize the dilutive effect of the 2016 final
and 2017 interim stock dividends.
Capital generation
Capital generation of the operating units amounted to EUR 809
million for the quarter. Market impacts and one-time items of
EUR 485 million mainly related to
model changes in both the
Netherlands and the United
Kingdom as well as model changes related to currency risk at
the group. All major model changes have been approved by Aegon's
college of supervisors. The benefit from separate account derisking
as part of the capital plan for the
Netherlands was offset by the negative impact from a model
conversion in the United States.
The model changes in the
Netherlands and United
Kingdom, and the model conversion in the United States will not have a material
recurring impact on capital generation going forward. Capital
generation excluding market impacts and one-time items amounted to
EUR 324 million.
Solvency II ratio
Aegon's Solvency II ratio increased from 185% to 195% during the
third quarter, as capital generation including market impacts and
one-time items (+10%) and the completion of the Legal & General
Part VII transfer related to the divestment of the UK annuity book
(+2%) more than offset the accrual for the interim 2017 dividend,
which was announced in August (-3%).
Semi-annual reporting
With effect from 2018, Aegon will report half-year and full-year
results, and no longer publish quarterly results. Reporting dates
will be made available on the financial calendar on
http://www.aegon.com.
Financial overview, 3Q 2017 geographically
Holding,
other
Asset activities &
EUR millions Americas Europe Asia Management eliminations Total
Underlying earnings
before tax by line of business
Life 146 99 18 - - 263
Individual savings
and retirement products 135 - (3) - - 132
Pensions 95 60 - - - 155
Non-life - 15 - - - 15
Asset Management - 0 - 30 - 30
Other - 3 (1) - (41) (39)
Underlying earnings before tax 376 177 14 30 (41) 556
Fair value items 142 7 1 - 8 159
Realized gains / (losses)
on investments 90 41 3 1 - 135
Net impairments 6 (2) 0 - (0) 4
Other income / (charges) (312) 98 (19) (1) 0 (233)
Run-off businesses (3) - - - - (3)
Income before tax 300 322 (0) 30 (34) 618
Income tax (69) (77) (2) (10) 9 (149)
Net income / (loss) 231 245 (2) 20 (25) 469
Net underlying earnings 279 137 7 20 (31) 412
Employee numbers
Sep. 30, Jun. 30, Dec.31,
2017 2017 2016
Employees 29,709 29,657 29,380
of which Aegon's share of employees
in joint ventures and associates 6,312 6,146 5,944
Full version of the press release
Use this link for the full version of the press release.
Additional information
Presentation
The conference call presentation is available on aegon.com as of
7.30 a.m. CET.
Supplements
Aegon's 3Q 2017 Financial Supplement and Condensed Consolidated
Interim Financial Statements
are available on aegon.com.
Conference call including Q&A
9:00 a.m. CET
Audio webcast on aegon.com
Dial-in numbers
United States:
+1-719-325-2231
United Kingdom:
+44-330-336-9411
The Netherlands:
+31-20-703-8261
Passcode: 9062105
Two hours after the conference call, a replay will be available
on aegon.com.
DISCLAIMERS
Cautionary note regarding non-IFRS measures
This document includes the following non-IFRS-EU financial
measures: underlying earnings before tax, income tax, income before
tax, market consistent value of new business and return on equity.
These non-IFRS-EU measures are calculated by consolidating on a
proportionate basis Aegon's joint ventures and associated
companies. The reconciliation of these measures, except for market
consistent value of new business, to the most comparable IFRS-EU
measure is provided in note 3 'Segment information' of Aegon's
Condensed Consolidated Interim Financial Statements. Market
consistent value of new business is not based on IFRS-EU, which are
used to report Aegon's primary financial statements and should not
be viewed as a substitute for IFRS-EU financial measures. Aegon may
define and calculate market consistent value of new business
differently than other companies. Return on equity is a ratio using
a non-IFRS-EU measure and is calculated by dividing the net
underlying earnings after cost of leverage by the average
shareholders' equity, the revaluation reserve and the reserves
related to defined benefit plans. Aegon believes that these
non-IFRS-EU measures, together with the IFRS-EU information,
provide meaningful supplemental information about the underlying
operating results of Aegon's business including insight into the
financial measures that senior management uses in managing the
business.
Local currencies and constant currency exchange
rates
This document contains certain information about Aegon's
results, financial condition and revenue generating investments
presented in USD for the Americas and Asia, and in GBP for the United Kingdom, because those businesses
operate and are managed primarily in those currencies. Certain
comparative information presented on a constant currency basis
eliminates the effects of changes in currency exchange rates. None
of this information is a substitute for or superior to financial
information about Aegon presented in EUR, which is the currency of
Aegon's primary financial statements.
Forward-looking statements
The statements contained in this document that are not
historical facts are forward-looking statements as defined in the
US Private Securities Litigation Reform Act of 1995. The following
are words that identify such forward-looking statements: aim,
believe, estimate, target, intend, may, expect, anticipate,
predict, project, counting on, plan, continue, want, forecast,
goal, should, would, is confident, will, and similar expressions as
they relate to Aegon. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that
are difficult to predict. Aegon undertakes no obligation to
publicly update or revise any forward-looking statements. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which merely reflect company expectations at the time
of writing. Actual results may differ materially from expectations
conveyed in forward-looking statements due to changes caused by
various risks and uncertainties. Such risks and uncertainties
include but are not limited to the following:
- Changes in general economic conditions, particularly in
the United States, the Netherlands and the United Kingdom;
- Changes in the performance of financial markets, including
emerging markets, such as with regard to:
- The frequency and severity of defaults by issuers in Aegon's
fixed income investment portfolios;
- The effects of corporate bankruptcies and/or accounting
restatements on the financial markets and the resulting decline in
the value of equity and debt securities Aegon holds; and
- The effects of declining creditworthiness of certain private
sector securities and the resulting decline in the value of
government exposure that Aegon holds;
- Changes in the performance of Aegon's investment portfolio and
decline in ratings of Aegon's counterparties;
- Consequences of a potential (partial) break-up of the
euro;
- Consequences of the anticipated exit of the United Kingdom from the European Union;
- The frequency and severity of insured loss events;
- Changes affecting longevity, mortality, morbidity, persistence
and other factors that may impact the profitability of Aegon's
insurance products;
- Reinsurers to whom Aegon has ceded significant underwriting
risks may fail to meet their obligations;
- Changes affecting interest rate levels and continuing low or
rapidly changing interest rate levels;
- Changes affecting currency exchange rates, in particular the
EUR/USD and EUR/GBP exchange rates;
- Changes in the availability of, and costs associated with,
liquidity sources such as bank and capital markets funding, as well
as conditions in the credit markets in general such as changes in
borrower and counterparty creditworthiness;
- Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets;
- Changes in laws and regulations, particularly those affecting
Aegon's operations' ability to hire and retain key personnel,
taxation of Aegon companies, the products Aegon sells, and the
attractiveness of certain products to its consumers;
- Regulatory changes relating to the pensions, investment, and
insurance industries in the jurisdictions in which Aegon
operates;
- Standard setting initiatives of supranational standard setting
bodies such as the Financial Stability Board and the International
Association of Insurance Supervisors or changes to such standards
that may have an impact on regional (such as EU), national or US
federal or state level financial regulation or the application
thereof to Aegon, including the designation of Aegon by the
Financial Stability Board as a Global Systemically Important
Insurer (G-SII);
- Changes in customer behavior and public opinion in general
related to, among other things, the type of products Aegon sells,
including legal, regulatory or commercial necessity to meet
changing customer expectations;
- Acts of God, acts of terrorism, acts of war and pandemics;
- Changes in the policies of central banks and/or
governments;
- Lowering of one or more of Aegon's debt ratings issued by
recognized rating organizations and the adverse impact such action
may have on Aegon's ability to raise capital and on its liquidity
and financial condition;
- Lowering of one or more of insurer financial strength ratings
of Aegon's insurance subsidiaries and the adverse impact such
action may have on the premium writings, policy retention,
profitability and liquidity of its insurance subsidiaries;
- The effect of the European Union's Solvency II requirements and
other regulations in other jurisdictions affecting the capital
Aegon is required to maintain;
- Litigation or regulatory action that could require Aegon to pay
significant damages or change the way Aegon does business;
- As Aegon's operations support complex transactions and are
highly dependent on the proper functioning of information
technology, a computer system failure or security breach may
disrupt Aegon's business, damage its reputation and adversely
affect its results of operations, financial condition and cash
flows;
- Customer responsiveness to both new products and distribution
channels;
- Competitive, legal, regulatory, or tax changes that affect
profitability, the distribution cost of or demand for Aegon's
products;
- Changes in accounting regulations and policies or a change by
Aegon in applying such regulations and policies, voluntarily or
otherwise, which may affect Aegon's reported results and
shareholders' equity;
- Aegon's projected results are highly sensitive to complex
mathematical models of financial markets, mortality, longevity, and
other dynamic systems subject to shocks and unpredictable
volatility. Should assumptions to these models later prove
incorrect, or should errors in those models escape the controls in
place to detect them, future performance will vary from projected
results;
- The impact of acquisitions and divestitures, restructurings,
product withdrawals and other unusual items, including Aegon's
ability to integrate acquisitions and to obtain the anticipated
results and synergies from acquisitions;
- Catastrophic events, either manmade or by nature, could result
in material losses and significantly interrupt Aegon's
business;
- Aegon's failure to achieve anticipated levels of earnings or
operational efficiencies as well as other cost saving and excess
capital and leverage ratio management initiatives; and
- This press release contains information that qualifies, or may
qualify, as inside information within the meaning of Article 7(1)
of the EU Market Abuse Regulation.
Further details of potential risks and uncertainties affecting
Aegon are described in its filings with the Netherlands Authority
for the Financial Markets and the US Securities and Exchange
Commission, including the Annual Report. These forward-looking
statements speak only as of the date of this document. Except as
required by any applicable law or regulation, Aegon expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in Aegon's expectations with regard
thereto or any change in events, conditions or circumstances on
which any such statement is based.
Media relations
Dick Schiethart
+31(0)70-344-8821
gcc@aegon.com
Investor relations
Willem van den Berg
+31(0)70-344-8305
ir@aegon.com
Conference call including Q&A (9:00
a.m. CET)
Audio webcast on aegon.com
United States: +1-719-325-2231
United Kingdom:
+44-330-336-9411
The Netherlands:
+31-20-703-8261
Passcode: 9062105
SOURCE Aegon N.V.