THE HAGUE, The Netherlands,
February 19, 2015 /PRNewswire/ --
Proposal to increase final dividend to EUR 0.12 per share
- Continued solid business performance
- Underlying earnings increase to EUR 562
million, driven by growth of the business (EUR 37 million), an employee benefit release in
the Netherlands (EUR 45 million) and the stronger US dollar
(EUR 25 million)
- Hedging programs and alternative investments main drivers of
fair value items loss of EUR 132
million
- Net income up strongly to EUR 399
million, supported by higher realized gains on
investments
- Return on equity of 9.7% and 10.5% excluding capital allocated
to run-off businesses
- Key markets deliver strong sales growth; asset base
continues to expand
- Gross deposits up 29% to EUR 13.7
billion, driven by asset management, variable annuities,
mutual funds and Knab; net deposits of EUR
2.4 billion (excluding stable value products)
- Life sales increase 9% to EUR 523
million, mainly as a result of higher universal life sales
in US and Asia
- Accident & health and general insurance sales 14% higher to
EUR 226 million, driven by US
- Profitability of sales remains strong with MCVNB of
EUR 196 million despite lower
interest rates
- Gross leverage and fixed charge cover targets achieved after
debt redemption
- Gross leverage ratio improves to 28.7% and fixed charge cover
increases to 6.5x
- Solvency ratio at 208%; holding excess capital of EUR 1.2 billion after debt redemption
- Operational free cash flows excluding market impacts and
one-time items of EUR 338
million
Statement of Alex Wynaendts, CEO
"Aegon's strong fourth quarter results complete a solid year for
the company, in what continues to be a challenging environment with
persistent low interest rates and market volatility. Higher sales
and earnings this quarter evidence the strength of our franchise
and the continued trust of our customers.
"Executing on our key strategic objective of optimizing our
portfolio of businesses, we announced the sale of our Canadian
operations, as well as our stake in La Mondiale Participations in
France. At the same time, we
continue to invest in growth opportunities. Recently, we announced
an asset management partnership with La Banque Postale in
France, and we are pleased to
conclude a distribution agreement with BANCOOB in Brazil.
"Aegon is well-positioned to serve the diverse and growing
financial needs of our current and future customers. Moreover, we
remain committed to generating long-term value for all
stakeholders. I am therefore pleased that our solid capital
position and cash flows enable us to announce an increase in the
final dividend to
12 eurocents per share."
Key performance indicators
Q4 Q3 Q4 FY FY
amounts in EUR millions [b] Notes 2014 2014 % 2013 % 2014 2013 %
Underlying earnings before tax 1 562 291 93 473 19 1,865 1,968 (5)
Net income 399 52 - 157 155 1,186 857 38
Sales 2 2,117 2,333 (9) 1,741 22 8,602 7,151 20
Market consistent value of new business 3 196 192 2 268 (27) 832 986 (16)
Return on equity 4 9.7% 5.0% 92 7.7% 25 7.8% 8.6% (10)
STRATEGIC HIGHLIGHTS
- Sale of minority interest in La Mondiale Participations for
EUR 350 million
- Aegon and La Banque Postale form asset management
partnership in France
- Global employee engagement survey shows Aegon's leading
position in the sector
Aegon's ambition
Aegon continues to pursue its strategic aim to be a leader in all
of its chosen markets, supported by four strategic objectives
embedded in all Aegon businesses: Optimize portfolio, Deliver
operational excellence, Enhance customer loyalty, and Empower
employees. These provide the strategic framework for the company's
ambition to become the most-recommended life insurance and pension
provider by customers and business partners, as well as the
most-preferred employer in the sector.
Optimize portfolio
Aegon is committed to continually assessing its businesses to
ensure they contribute to its strategic objectives. This resulted
in the announcement of the divestment of its Canadian activities in
October 2014 and, after a
comprehensive strategic review, the announcement of an agreement to
sell its 35% share in La Mondiale Participations to La Mondiale for
EUR 350 million in November 2014. This is in line with book value
and the transaction is expected to close in the first quarter of
2015.
Recognizing opportunities in the market, Aegon and La Banque
Postale announce that they have concluded an agreement to form a
strategic long-term asset management partnership in France. As part of the agreement, Aegon will
acquire a 25% stake in La Banque Postale Asset Management (LBPAM)
for a consideration of EUR 112.5
million with the option to increase the stake to 35%. LBPAM
is the fifth largest asset manager in France with approximately EUR 150 billion assets under management. The two
companies will work closely together to develop a range of
investment products that La Banque Postale Asset Management will
offer to La Banque Postale's 11 million clients and to its growing
institutional client base in France. The transaction is expected to close
mid-2015 subject to regulatory approval.
With the aim to further capture growth prospects in Brazil, Mongeral Aegon and BANCOOB (Banco
Cooperativo do Brasil) signed an agreement to establish a joint
venture to provide life insurance and pension solutions within the
SICOOB System. SICOOB is the largest cooperative financial system
in the country, with over 2.8 million associates and 2,200 points
of service. BANCOOB is a private commercial bank that is owned by
the credit cooperative entities affiliated with the SICOOB system.
In 2014, the bank had approximately EUR 7
billion in assets and a net equity of approximately
EUR 250 million. This agreement
represents a key expansion into bank distribution for Mongeral
Aegon which already serves over 1 million customers nationwide
through over 4,000 broker partners. The final agreement is subject
to regulatory approval by SUSEP (Superintendência de Seguros
Privados) and CADE (Conselho Administrativo de Defesa
Econômica).
Deliver operational excellence
Mongeral Aegon was the winner of the 2014 Innovation in
Insurance Award, in the Products and Services category. The
National Confederation of Insurance Companies in Brazil recognized Mongeral Aegon's new digital
distribution strategy which integrates traditional distribution
channels with the company's own online portal and with online
stores from business partners.
Aegon has successfully completed the merger and rebranding of a
number of legal entities in the United
States. Aegon insurance companies in the United States now almost exclusively
operate under the Transamerica brand. This simplifies the legal
structure, reduces costs, releases capital and leverages the
strength of Aegon's Transamerica brand among customers and
intermediaries.
Enhance customer loyalty
Aegon has started to upgrade customers in the United Kingdom onto its award-winning
platform, Aegon Retirement Choices. This is an important step in
the development of the platform. Customers experience better
service, lower fees and are able to take advantage of a number of
retirement readiness tools offered exclusively on the platform.
Upgraded customers are choosing to consolidate assets from other
sources.
Knab, Aegon's online bank in the
Netherlands, has been recognized as having the best new
investment concept for its simple, convenient and accessible
investing. It provides sample portfolios to help guide newer
investors as well as advanced analysis tools for more experienced
investors. Knab's innovations have now attracted more than 50,000
customers, following a strong increase in 2014.
Aegon Spain has expanded its multi-channel distribution approach
by rolling out a new innovative advice channel offering customers a
personal protection and retirement planning service. Aegon advisers
guide customers through their options and use the latest technology
to simplify financial and protection planning. Two customer centers
have opened in Barcelona and
Madrid with others planned over
the coming years.
Aegon Hungary was the recipient of three awards for its damage
prevention campaign, a European Excellence Award, CSR Hungary Award
and PR Society Award. These prestigious accolades acknowledge the
best sustainability initiatives in Hungary. Aegon Hungary was also recognized,
for the sixth consecutive year, for excellence in customer service
by winning the Hungarian Association of Independent Insurance
Brokers best insurer award for outstanding customer service in the
residential property and personal insurance categories.
Empower Employees
Results from Aegon's fourth annual global employee survey place
Aegon at or above the high-performing norm for the financial
services sector. Employee empowerment and enablement have each
increased 4 points alone this year, and 10 points since the first
survey in 2011, to 73 and 74 respectively. 88% of all Aegon
employees worldwide participated in the survey. This demonstrates
the success of Aegon's ongoing work to become the most preferred
employer in the sector, which allows Aegon to attract and develop
the talent required to best service the needs of its customers.
Financial overview [c]
Q4 Q3 Q4
EUR millions Notes 2014 2014 % 2013 % FY 2014 FY 2013 %
Underlying earnings before tax
Americas 367 134 174 299 23 1,134 1,314 (14)
The Netherlands 172 127 35 124 39 558 454 23
United Kingdom 29 28 3 20 45 115 87 32
New Markets 33 40 (16) 46 (27) 196 227 (13)
Holding and other (39) (37) (4) (15) (156) (138) (113) (22)
Underlying earnings before tax 562 291 93 473 19 1,865 1,968 (5)
Fair value items (132) (296) 55 (272) 51 (807) (1,294) 38
Realized gains / (losses)
on investments 304 85 - 104 191 697 500 39
Net impairments (28) 5 - (1) - (34) (122) 72
Other income / (charges) (191) (29) - (33) - (240) (52) -
Run-off businesses (3) (31) 90 15 - (21) 21 -
Income before tax 511 23 - 286 79 1,458 1,021 43
Income tax (112) 29 - (129) 13 (272) (164) (66)
Net income 399 52 - 157 155 1,186 857 38
Net income / (loss) attributable to:
Equity holders of Aegon N.V. 399 52 - 155 158 1,186 854 39
Non-controlling interests - - - 2 (78) 1 3 (79)
Net underlying earnings 429 235 82 350 22 1,416 1,531 (8)
Commissions and expenses 1,596 1,398 14 1,469 9 5,892 5,873 -
of which operating expenses 9 897 826 9 836 7 3,312 3,273 1
New life sales
Life single premiums 1,481 1,806 (18) 2,085 (29) 5,596 6,510 (14)
Life recurring premiums annualized 374 372 1 271 38 1,485 1,260 18
Total recurring plus 1/10 single 523 552 (5) 480 9 2,045 1,911 7
New life sales
Americas 10 169 141 20 113 49 552 464 19
The Netherlands 82 99 (17) 95 (14) 251 206 22
United Kingdom 194 250 (22) 213 (9) 972 1,014 (4)
New markets 10 76 61 25 58 32 271 228 19
Total recurring plus 1/10 single 523 552 (5) 480 9 2,045 1,911 7
New premium production
accident and health insurance 204 241 (15) 181 13 941 746 26
New premium production
general insurance 22 16 38 18 25 73 61 18
Gross deposits
(on and off balance)
Americas 10 7,764 7,053 10 7,062 10 31,849 28,424 12
The Netherlands 989 716 38 329 200 2,781 1,338 108
United Kingdom 67 90 (25) 62 9 281 281 -
New markets 10 4,864 7,382 (34) 3,179 53 20,519 14,287 44
Total gross deposits 13,684 15,242 (10) 10,632 29 55,431 44,330 25
Net deposits (on and off balance)
Americas 10 (314) 457 - 1,203 - 5,358 6,578 (19)
The Netherlands 484 338 43 (87) - 1,131 (199) -
United Kingdom 34 57 (41) 38 (10) 156 211 (26)
New markets 10 591 2,945 (80) 885 (33) 3,296 4,089 (19)
Total net deposits
excluding run-off businesses 794 3,797 (79) 2,039 (61) 9,941 10,678 (7)
Run-off businesses (170) (265) 36 (164) (4) (1,217) (2,366) 49
Total net deposits / (outflows) 625 3,532 (82) 1,876 (67) 8,724 8,312 5
Revenue-generating investments
Dec. 31, Sep. 30, Dec. 31,
2014 2014 % 2013 %
Revenue-generating investments (total) 558,328 538,217 4 475,285 17
Investments general account 153,653 151,469 1 135,409 13
Investments for account of policyholders 191,467 184,317 4 165,032 16
Off balance sheet investments third parties 213,208 202,432 5 174,843 22
OPERATIONAL HIGHLIGHTS
Underlying earnings before tax
Aegon's underlying earnings before tax in the fourth quarter of
2014 increased 19% to EUR 562 million
compared with the fourth quarter of 2013. The main drivers of the
increase were higher earnings resulting from growth in variable
annuity, pension and asset management balances (EUR 37 million), an employee benefit reserve
release resulting from legislation changes in the Netherlands
(EUR 45 million) and the stronger US
dollar (EUR 25 million). These more
than offset the reduction in earnings of approximately EUR 25 million, which resulted from the
assumption changes and model updates implemented in the third
quarter.
Underlying earnings from the Americas were up 23% to
EUR 367 million. Growth in variable
annuity and pension balances, the positive impact of one-time items
of EUR 15 million and favorable
currency movements, were partly offset by the earnings reduction
from the assumption changes and model updates implemented in the
third quarter.
In the Netherlands, underlying
earnings increased 39% to EUR 172
million. This was driven by a positive contribution of
EUR 45 million from an employee
benefit reserve release.
Underlying earnings from Aegon's operations in the United Kingdom were up 45% to EUR 29 million in the fourth quarter of 2014,
mainly due to improved persistency.
Underlying earnings from New Markets declined to EUR 33 million. Higher surrenders in Poland following product changes (EUR 10 million), the derecognition of the
earnings contribution from France
and lower earnings from Asia more
than offset growth at Aegon Asset Management, which resulted from
an increase in third-party business.
Total holding costs increased to EUR 39
million. This was primarily the result of net interest costs
following a debt issuance to refinance a perpetual bond in the
second quarter of 2014, of which the cost was previously accounted
for directly through shareholders' equity. In addition, higher
Solvency II related expenses and the non-recurrence of a gain from
interest on taxes of EUR 18 million
in the fourth quarter of 2013 also had a negative impact.
Net income
Net income more than doubled to EUR 399
million due to higher underlying earnings, an improvement in
fair value items and higher realized gains on investments, more
than offsetting an increase in other charges.
Fair value items
The results from fair value items improved to a loss of
EUR 132 million. The loss was mainly
driven by hedging programs and underperformance on alternative
investments related to the energy sector in the United States, and credit spread
tightening in the Netherlands.
These were partly offset by a change in discounting resulting from
a change in collateral agreements for derivative portfolios,
together with a positive result on the hedges covering guarantees
in the Netherlands.
Realized gains on investments
Realized gains on investments increased to EUR 304 million, and were primarily related to a
repositioning of the investment portfolio in anticipation of
Solvency II in the Netherlands and
the United Kingdom, and the
divestment of a private equity investment in the Netherlands.
Impairment charges
Impairments increased to EUR 28
million. This was mainly the result of lower recoveries on
previously impaired structured securities, which supported
impairments in the previous quarters of 2014. Aegon expects this
trend to continue into 2015.
Other charges
Other charges totaled EUR 191 million
and were primarily caused by a charge for the Optas agreement in
the Netherlands (EUR 95 million), a provision for the
implementation of the fee cap on pensions in the United Kingdom (EUR 35
million), a provision for the modification of unit-linked
policies in Poland (EUR 23 million) and a change in the valuation of
fixed assets in Aegon's Canadian business in anticipation of its
divestment (EUR 15 million).
Run-off businesses
The loss from run-off businesses amounted to EUR 3 million.
Income tax
Income tax amounted to EUR 112
million in the fourth quarter. The effective tax rate on
underlying earnings was 24%.
Return on equity
Return on equity increased to 9.7% for the fourth quarter of 2014,
driven by higher underlying earnings. Return on equity for Aegon's
ongoing businesses, excluding the run-off businesses, amounted to
10.5% over the same period.
Operating expenses
In the fourth quarter, operating expenses increased 7% to
EUR 897 million, due to a stronger US
dollar and a provision for the implementation of the fee cap on
pensions in the United Kingdom,
which more than offset an employee benefit reserve release in
the Netherlands. At constant
currencies, the increase was 3%.
Sales
In the fourth quarter of 2014, Aegon's total sales were up 22% to
EUR 2.1 billion. This was the result
of growth in variable annuities, indexed universal life and
universal life with secondary guarantees, as well as favorable
currency effects. New life sales were up 9% to EUR 523 million, driven by higher sales of
universal life products in the United
States and Asia. In
response to the further decline of interest rates and in-line with
Aegon's pricing discipline, Aegon stopped offering its universal
life product with secondary guarantees in early February 2015. Gross deposits increased 29%, as
higher deposits in Aegon Asset Management and variable annuities in
the United States more than offset
lower deposits in the retirement business. Net deposits, excluding
run-off and stable value businesses amounted to EUR 2.6 billion as a result of inflows in
variable annuities, the retirement business and Aegon Asset
Management. New premium production for accident and health
insurance increased 13% to EUR 204
million, mainly due to higher supplemental health sales in
the United States as a result of
the Affordable Care Act.
Market consistent value of new business
The market consistent value of new business amounted to
EUR 196 million. The positive effect
of sales growth in the United
States was more than offset by lower interest rates and
lower production of Dutch mortgages for Aegon's general account.
The universal life product with secondary guarantees, which Aegon
has decided to stop selling in February
2015, had a negative market consistent value of new business
in the fourth quarter.
Revenue-generating investments
Revenue-generating investments increased 4% during the fourth
quarter of 2014 to EUR 558 billion,
driven by favorable market impacts, currency movements and net
inflows.
Capital management
Shareholders' equity increased EUR 2.4
billion compared with the end of the third quarter of 2014
to EUR 24.3 billion at December 31, 2014. This increase was mainly
driven by lower interest rates, which resulted in higher
revaluation reserves, and favorable currency movements. The
revaluation reserves were up by EUR 1.8
billion to EUR 8.3 billion. Aegon's shareholders' equity,
excluding revaluation reserves and defined benefit plan
remeasurements, increased to EUR 17.6
billion - or EUR 8.34 per
common share - at the end of the fourth quarter, driven by net
income generated during the quarter and favorable currency
movements.
The gross leverage ratio further improved to 28.7% in the fourth
quarter, well within the target range of 26-30%. This was driven by
the redemption of the EUR 500 million
4.125% senior bond as of December 8,
2014, and higher shareholders' equity. The fixed charge
cover ratio increased to 6.5x in 2014, up from 5.2x in 2013 and
within the target range of 6-8x. Excess capital in the holding
company amounted to EUR 1.2 billion,
as the impact of debt redemption, interest payments and operating
expenses were only partly offset by net dividends received from
country units.
Aegon's Insurance Group Directive (IGD) ratio increased to 208%
in the fourth quarter of 2014, mainly driven by earnings generated
in the quarter. The capital in excess of the S&P AA threshold
in the United States remained
stable at USD 1.1 billion, as
dividends paid to the holding were offset by earnings. The RBC
ratio in the United States was
~540% at year-end 2014. In the
Netherlands, the IGD ratio, excluding Aegon Bank, was ~215%.
Earnings generated in the fourth quarter were more than offset by
the negative impact of declining interest rates on required
capital. The Pillar I ratio in the United
Kingdom, including the with-profit fund, was ~140%, as the
negative impact of de-risking and business transformation costs
more than offset earnings generated during the quarter. These local
Solvency I ratios will become less relevant over the course of
2015, as Aegon's capital management for its European entities
transitions towards Solvency II, ahead of its introduction as of
January 1, 2016.
On November 24, 2014, Aegon
announced that it had reached an agreement to sell its 35% share in
La Mondiale Participations to La Mondiale for EUR 350 million, in line with IFRS book value.
The proceeds will increase the group's IGD solvency ratio by
approximately 5 percentage points. Aegon expects this transaction
to close in the first quarter of 2015.
Cash flows
Operational free cash flows were EUR 325
million in the fourth quarter of 2014. Excluding one-time
items and positive market impacts operational free cash flows
amounted to EUR 338 million. Positive
market impacts in the Americas were largely offset by negative
market impacts in the Netherlands
and the United Kingdom.
Final dividend
At the Annual General Meeting of Shareholders on May 20, 2015, the Supervisory Board will, absent
unforeseen circumstances, propose a final dividend for 2014 of
EUR 0.12 per common share. If
approved, and in combination with the interim dividend of
EUR 0.11 per share paid over the
first half of 2014, Aegon's total dividend over 2014 will amount to
EUR 0.23 per common share. The final
dividend will be paid in cash or stock at the election of the
shareholder. The value of the stock dividend will be approximately
equal to the cash dividend. Aegon intends to neutralize the
dilutive effect of the stock dividend on earnings per share.
Aegon's Euronext-listed shares will be quoted ex-dividend on
May 22, 2015, while its
NYSE-listed shares will be quoted ex-dividend on May 21, 2015. The record date is May 25, 2015, for Aegon's Euronext-listed shares
and May 26, 2015, for its NYSE-listed
shares. The election period for shareholders will run from
May 28 up to and including
June 12, 2015. The stock fraction
will be based on the average share price on Euronext Amsterdam from
June 8 through June 12, 2015. The
stock dividend ratio will be announced on June 17, 2015 and the dividend will be payable as
of June 19, 2015.
Financial overview, Q4 2014 geographically [c]
Holding,
other
The United New activities &
EUR millions Americas Netherlands Kingdom Markets eliminations Total
Underlying earnings before
tax by line of business
Life 114 102 25 (4) - 237
Individual savings
and retirement products 169 - - - - 169
Pensions 81 58 2 3 - 145
Non-life - 9 - 9 - 18
Distribution - 2 - - - 2
Asset Management - - - 26 - 26
Other - - - - (39) (39)
Share in underlying earnings
before tax of associates 3 - 1 (1) - 3
Underlying earnings before tax 367 172 29 33 (39) 562
Fair value items (172) 61 1 (14) (9) (132)
Realized gains /
(losses) on investments 11 248 42 4 - 304
Net impairments (19) (5) - (4) - (28)
Other income / (charges) (17) (99) (38) (37) (1) (191)
Run-off businesses (3) - - - - (3)
Income before tax 167 377 34 (18) (48) 511
Income tax (17) (105) 1 (6) 13 (112)
Net income 150 272 35 (23) (35) 399
Net underlying earnings 264 123 45 21 (24) 429
Employee numbers
Dec. 31, Dec. 31,
2014 2013
Employees 28,602 26,891
of which agents 5,713 4,753
of which Aegon's share of employees
in joint ventures and associates 1,614 1,462
Full version press release
Use this link for the full version of the press release.
ADDITIONAL INFORMATION
The Hague - February 19, 2015
Presentation
The conference call presentation is available on aegon.com as of
7.30 a.m. CET.
Supplements
Aegon's Q4 2014 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:
+1-212-444-0412
United Kingdom:
+44-203-427-1902
The Netherlands:
+31-20-716-8296
Two hours after the conference call, a replay will be available
on aegon.com.
Aegon’s roots go back 170 years – to the first half of the
nineteenth century. Since then, Aegon has grown into an
international company, with businesses in more than 25 countries in
the Americas, Europe and
Asia. Today, Aegon is one of the
world’s leading financial services organizations, providing life
insurance, pensions and asset management. Aegon’s purpose is to
help people take responsibility for their financial future. More
information: aegon.com.
DISCLAIMERS
Cautionary note regarding non-IFRS measures
This document includes the following non-IFRS financial
measures: underlying earnings before tax, income tax, income before
tax and market consistent value of new business. These non-IFRS
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 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, which are used to report Aegon's primary
financial statements and should not be viewed as a substitute for
IFRS financial measures. Aegon may define and calculate market
consistent value of new business differently than other companies.
Aegon believes that these non-IFRS measures, together with the IFRS
information, provide meaningful information about the underlying
operating results of Aegon's business including insight into the
financial measures that senior management uses in managing the
business. In addition, return on equity is a ratio using a non-GAAP
measure and is calculated by dividing the net underlying earnings
after cost of leverage by the average shareholders' equity
excluding the preferred shares, the revaluation reserve and the
reserves related to defined benefit plans.
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 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
sovereign 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;
- 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, the
products Aegon sells, and the attractiveness of certain products to
its consumers;
- Regulatory changes relating to the insurance industry in the
jurisdictions in which Aegon operates;
- Changes in customer behavior and public opinion in general
related to, among other things, the type of products also 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, may affect Aegon's reported results and shareholders'
equity;
- 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;
and
- 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.
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
Marcel van Beusekom
+31(0)70-344-8572
gcc@aegon.com
Investor relations
Willem van den Berg
+31(0)70-344-8305
ir@aegon.com
PRN NLD