AMSTERDAM--Dutch insurer Aegon NV (AGN.AE) said Wednesday that
its net profit in the first quarter was impacted heavily by losses
on its equity hedging programs, as sales of new business rose.
MAIN FACTS:
- First quarter sales were down 1% to EUR1.73 billion.
- New life sales increased 12% to EUR499 million due to
particularly strong pension sales in the UK and the Netherlands.
Accident & health and general insurance sales increase 14% to
EUR 239 million.
- Deposits were 9% lower at EUR10 billion. Aegon reports a
substantial increase in variable annuity and retail mutual fund
deposits, offset by lower asset management and pension
deposits.
- Value of new business increased to EUR232 million, due to
higher sales and improved margins.
- Underlying earnings are up 1% to EUR 445 million. The effects
of business growth and favorable equity markets were offset by
exits from partnerships in Spain and higher sales and employee
performance related expenses.
- Decline in net income by 61% to EUR204 million, mainly due to
losses on equity hedging programs established to protect the
capital position. The sharp rise in equity markets resulted in a
loss on Aegon's equity hedging programs.
- Solvency ratio was stable at 224% at the end of the
quarter.
- Excess capital of EUR 1.8 billion at holding level.
- Operational free cash flow of EUR553 million, including
exceptional items of EUR233 million.
- By Amsterdam Bureau, Dow Jones Newswires;
amsterdam@dowjones.com