By Maarten van Tartwijk
AMSTERDAM--Dutch life insurance and pension company Aegon NV
(AEG) Friday reported a sharp rise in fourth-quarter net profit
thanks to higher sales, lower restructuring charges and investment
gains.
Aegon also said it reached agreement with its largest
shareholder, Vereniging Aegon, about the cancellation of preferred
shares in a bid to simplify its capital base in the face of new
European regulations for the insurance industry. In the
transaction, Aegon will pay 1.1 billion euros ($1.47 billion) in
cash and common stock, increasing its outstanding shares by around
7%.
Aegon, the owner of U.S. insurer Transamerica Corp, said net
profit was 422 million euros, up from 81 million euros in the same
period a year earlier when earnings were hit by restructuring
charges. The results were broadly in line with analyst
expectations.
"Our solid fourth-quarter performance, both in terms of sales
and earnings, is a result of the steps we have taken to transform
our business," Chief Executive Alex Wynaendts said in a
statement.
Aegon received a government bailout in 2008 after suffering
heavy investment losses during the financial crisis. Since then,
the insurer has restructured its operations in the U.S., the
Netherlands and the U.K. and divested a series of assets. The
company repaid the Dutch state in 2011 and is now sitting on a
large cash pile. It recently made a number of small acquisitions in
Romania and Ukraine to bolster its footprint in high-growth
markets.
-Write to Maarten van Tartwijk at
maarten.vantartwijk@dowjones.com
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