THE HAGUE, August 13, 2015 /PRNewswire/ --
- Solid underlying earnings
- Underlying earnings increase to EUR 549
million as fee business growth and the stronger US dollar
were partly offset by lower US life & protection results,
including adverse mortality of EUR 17
million
- Equity and interest rate hedging programs main drivers of fair
value losses of EUR 293 million
- Net income amounts to EUR 350
million
- Return on equity of 8.2% and 8.9% excluding capital allocated
to run-off businesses
- Continued strong profitable sales
- US retirement plans and asset management main drivers behind
gross deposits of EUR 16.8
billion
and net deposits of EUR 3.2
billion
- New life insurance sales level at EUR
518 million
- Accident & health and general insurance sales stable at
EUR 248 million
- Market consistent value of new business of EUR 183 million impacted by low interest
rates
- Increase in interim dividend supported by
strong cash flows
- Operational free cash flows excluding market impacts and
one-time items of EUR 388
million
- Holding excess capital of EUR 1.5
billion and gross leverage ratio improves to 27.7%
- Interim dividend increases to EUR
0.12 per share; dilutive effect of stock dividend to be
neutralized
- More clarity obtained on Solvency II; ratio expected to be in
the range of 140 - 170%
Statement of Alex Wynaendts, CEO
"Aegon's businesses delivered solid results this quarter,
despite adverse mortality experience in the United States and the negative impact from
our hedging programs on net income. At the same time, we are
pleased with the high level of sales as we continue to secure new
distribution agreements and reach many new customers in all our
markets.
"Executing on our strategy to ensure our businesses support our
long-term growth ambitions, we sold our Canadian operations as well
as Clark Consulting in the US. In addition, we have further
improved our risk profile by hedging EUR 6
billion of longevity reserves in the Netherlands and by reducing balances of
our legacy variable annuity products in the US.
"While uncertainties on Solvency II remain, we have obtained
clarity on a number of items - including treatment of the US -
which allows us to tighten the range of expected outcomes.
Furthermore, we have applied for the use of our internal model and
are currently awaiting regulatory approval.
"I am also pleased to announce that our strong capital position
and growing cash flows enable us to raise
the interim dividend to 12 eurocents."
Key performance indicators
Q2 Q1 Q2 YTD YTD
amounts in EUR millions b) Notes 2015 2015 % 2014 % 2015 2014 %
Underlying earnings before tax 1 549 469 17 514 7 1,018 1,012 1
Net income 350 316 11 343 2 666 735 (9)
Sales 2 2,442 2,750 (11) 2,066 18 5,192 4,152 25
Market consistent value of new
business 3 183 140 30 221 (17) 323 444 (27)
Return on equity 4 8.2% 6.6% 25 8.7% (5) 7.5% 8.6% (12)
STRATEGIC HIGHLIGHTS
- Additional longevity hedging in the Netherlands further reduces
exposure
- Sale of Canadian operations completed
- Expanded partnerships with Edward Jones and Merrill Lynch in the
US
- Guaranteed drawdown product launched on UK
platform
Aegon's ambition
Aegon's aim to be a leader in all of its chosen markets is
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
As part of Aegon's strategy to enhance its risk-return profile
and to improve capital efficiency, Aegon completed a third
longevity transaction in the
Netherlands on July 15, 2015.
The transaction builds on previous longevity deals and underlines
Aegon's leadership in the Dutch pension market. The hedge, covering
close to EUR 6 billion of underlying
reserves, provides protection for a period of 50 years against
longevity improvements. A significant number of younger pension
customers are covered - evidence that the longevity risk transfer
market continues to develop. The company will continue to explore
further opportunities to manage its Dutch longevity risk
efficiently.
On July 10, 2015, Aegon reached an
agreement with Greenspoint Capital and the Newport Group to sell
Clark Consulting, its Bank-Owned Life Insurance (BOLI) distribution
and servicing unit in the US, for USD 177.5
million (EUR 160 million).
Clark Consulting is a distinct entity within the BOLI/COLI
insurance business that is currently in run-off. The impact on net
income from the sale of Clark Consulting is expected to be
immaterial as tax benefits from the recognition of a tax loss
largely offset the loss on the sale.
On July 31, 2015, Aegon completed
the CAD 600 million sale of its
Canadian life insurance business to Wilton
Re following regulatory approval. As indicated earlier, the
transaction will result in a book loss of CAD 1.2 billion (EUR 0.8
billion), which will be booked in the third quarter of 2015.
Aegon has earmarked the proceeds of this transaction for the
redemption of the USD 500 million
4.625% senior bond, due in December
2015. The combination of the divestment and the redemption
of the bond will improve Aegon's return on equity by approximately
40 basis points, while reducing net underlying earnings by less
than 1%. It will also improve Aegon's leverage ratio by
approximately 40 basis points on a pro forma basis, while the fixed
charge cover ratio will improve by 0.5.
Deliver operational excellence
In the United States, Aegon
launched its customized Transamerica retirement solutions with
Merrill Lynch. This new program is the first time that Transamerica
has offered a 403(b) retirement plan program for not-for-profit
organizations, including higher education and healthcare
institutions, with Merrill Lynch. In addition, Transamerica will be
launching a mutual fund based corporate retirement plan program,
primarily to companies with 401(k) plans up to USD 100 million. Transamerica and Merrill Lynch
have also developed a workplace retirement program that will have a
powerful and direct impact in helping more employees retire with
confidence. Enhancing distribution relationships with strong
partners such as Merrill Lynch is at the core of Aegon's strategy
to further expand the reach into its chosen markets.
Additionally, Transamerica expanded its distribution partnership
with Edward Jones, by offering
corporate retirement plans and long term care products.
Edward Jones provides financial
services for individual investors and small businesses throughout
the United States. By joining
forces with Edward Jones and
expanding the distribution, many more Americans will gain access to
retirement plan and long-term care solutions to prepare for their
financial future.
In the Netherlands, Aegon is a
leading provider of insured pension solutions, defined contribution
arrangements and pension administration. Recognizing opportunities
and trends in the Dutch market, Aegon is now the first to set up a
'general pension fund', or Algemeen Pensioen Fonds (APF). An APF
allows for multiple pension plans to be combined within a single
scheme, overseen by a single independent board, while ring-fencing
assets. This new pension vehicle is particularly attractive for
those funds that wish to maintain their own identity while also
enjoying the benefits of economies of scale and higher quality
through shared services.
In response to increasing customer demand and the recent
regulatory changes in the market, Aegon launched a new pension
product on its UK platform. The product, Secure Retirement Income,
gives retirees access to drawdown with a guaranteed level of
income. This offers customers an attractive alternative to an
annuity or flexible access drawdown product, both of which have
their limitations. This new option therefore enables people to keep
their money invested, but with a guaranteed level of minimum income
- thereby meeting the twin demands of flexibility and
certainty.
Demonstrating Aegon's efforts of becoming more digital, the
company won several awards. In the United
States, Transamerica won two prestigious Hermes Creative
Awards in recognition of the company's creativity and innovation;
and in the Netherlands, Aegon was
rated by ITDS Consultancy as the best insurer on social media
thanks to its integrated online approach.
Enhance customer loyalty
Aegon opened an innovative new Customer Experience Center, or
'cXcenter', in the Netherlands.
This center is enabling Aegon to better evaluate the accessibility
and user-friendliness of its services. The new cXcenter allows
Aegon to conduct in-depth interviews, client panels and eye
tracking studies in order to enhance customer experience on
Aegon.nl and the Mijn Aegon ('My Aegon') app.
In line with its commitment to help customers take
responsibility for their financial future, Aegon has established a
Research Center for Longevity and Retirement, leveraging the
reputation and success of the Transamerica Institute in
the United States. Its mission is
to conduct research, educate the public, and inform a global
dialogue on trends issues, and opportunities surrounding longevity,
population aging, and retirement security. The Aegon Center brings
together experts from across Aegon's businesses in Europe, the Americas and Asia in addition to external parties. It will
be a focal point for Aegon's research on people's attitudes toward
aging and retirement.
Financial overview
Q2 Q1 Q2 YTD YTD
EUR millions Notes 2015 2015 % 2014 % 2015 2014 %
Underlying earnings
before tax
Americas 358 290 23 331 8 648 633 2
The Netherlands 136 131 4 131 4 267 259 3
United Kingdom 34 38 (10) 32 9 72 58 24
New Markets 62 51 22 62 - 113 123 (8)
Holding and other (41) (42) 1 (41) - (83) (62) (34)
Underlying earnings
before tax 549 469 17 514 7 1,018 1,012 1
Fair value items (293) (159) (84) (263) (11) (451) (379) (19)
Realized gains /
(losses) on
investments 134 119 13 198 (32) 252 308 (18)
Net impairments 7 (11) - (3) - (4) (11) 65
Other income / (charges) (11) (1) - (14) 24 (11) (20) 43
Run-off businesses 3 8 (65) (1) - 11 13 (20)
Income before tax 389 425 (9) 432 (10) 814 924 (12)
Income tax (39) (109) 64 (88) 56 (148) (189) 22
Net income 350 316 11 343 2 666 735 (9)
Net income / (loss)
attributable to:
Equity holders of Aegon N.V. 350 316 11 343 2 666 735 (9)
Net underlying earnings 433 344 26 382 13 777 752 3
Commissions and expenses 1,761 1,713 3 1,471 20 3,474 2,898 20
of which operating
expenses 9 923 902 2 810 14 1,825 1,589 15
New life sales
Life single premiums 1,062 1,421 (25) 1,247 (15) 2,483 2,309 8
Life recurring premiums
annualized 411 409 1 386 7 820 739 11
Total recurring plus
1/10 single 518 551 (6) 511 1 1,068 970 10
New life sales
Americas 10 158 141 12 125 26 298 241 24
The Netherlands 25 38 (34) 37 (34) 62 69 (10)
United Kingdom 263 268 (2) 278 (5) 531 527 1
New Markets 10 72 105 (31) 71 2 177 133 33
Total recurring plus
1/10 single 518 551 (6) 511 1 1,068 970 10
New premium production
accident and health
insurance 228 307 (26) 235 (3) 535 497 8
New premium production
general insurance 20 22 (11) 17 15 42 35 21
Gross deposits (on and
off balance)
Americas 10 9,069 11,550 (21) 8,524 6 20,619 17,032 21
The Netherlands 1,116 1,563 (29) 591 89 2,678 1,077 149
United Kingdom 88 80 11 70 25 168 124 36
New Markets 10 6,496 5,499 18 3,844 69 11,994 8,272 45
Total gross deposits 16,769 18,692 (10) 13,029 29 35,460 26,504 34
Net deposits (on and
off balance)
Americas 10 1,913 4,404 (57) 3,237 (41) 6,317 5,215 21
The Netherlands 355 796 (55) 271 31 1,150 309 -
United Kingdom 54 42 27 38 42 96 66 47
New Markets 10 975 2,276 (57) 2,687 (64) 3,250 (240) -
Total net deposits
excluding
run-off businesses 3,296 7,518 (56) 6,233 (47) 10,814 5,350 102
Run-off businesses (111) (213) 48 (163) 32 (324) (782) 59
Total net deposits /
(outflows) 3,185 7,305 (56) 6,070 (48) 10,490 4,568 130
Revenue-generating investments
Jun. 30, Mar. 31, Dec. 31,
2015 2015 % 2014 %
Revenue-generating investments (total) 645,017 637,599 1 558,328 16
Investments general account 158,956 172,504 (8) 153,653 3
Investments for account of policyholders 205,903 215,291 (4) 191,467 8
Off balance sheet investments third parties 280,158 249,804 12 213,208 31
OPERATIONAL HIGHLIGHTS
Underlying earnings before tax
Aegon's underlying earnings before tax in the second quarter of
2015 increased by 7% to
EUR 549 million. Favorable currency
movements (EUR 86 million), growth in
variable annuity and pension balances in the United States and asset management
balances (EUR 34 million) more than
offset the reduction in recurring earnings resulting from the
assumption changes and model updates implemented in the United States in the third quarter of 2014
(EUR 25 million), lower earnings from
fixed annuities (EUR 13 million) and
divestments (EUR 14 million).
Underlying earnings from the Americas were up by 8% to
EUR 358 million. In US dollars,
underlying earnings decreased by 13%. The positive impact on
earnings from growth in variable annuity and pension balances was
more than offset by the recurring earnings reduction from the
assumption changes and model updates implemented in the third
quarter of 2014, lower earnings from fixed annuities and the
divestment of Canada. The quarter
included adverse mortality of EUR 17
million.
In the Netherlands, underlying
earnings increased by 4% to EUR 136
million, as favorable mortality and one-time items were
partly offset by higher non-life claims and lower investment
income.
Underlying earnings from Aegon's operations in the United Kingdom were up 9% to EUR 34 million in the second quarter of 2015,
mainly as a result of favorable currency movements.
Underlying earnings from New Markets were stable at EUR 62 million. Higher asset management and
performance fees offset lower earnings in other markets and the
divestment of Aegon's stake in
La Mondiale Participations.
Total holding costs remained flat at EUR
41 million.
Net income
Net income slightly increased to EUR 350
million. Higher underlying earnings and lower taxes were
offset by a higher loss on fair value items and lower realized
gains.
Fair value items
The loss from fair value items amounted to EUR 293 million. This loss was mainly driven by
hedging programs in the United
States and the Netherlands
and alternative investments, which more than offset a gain on
interest rate swaps on perpetuals at the holding of EUR 118 million as a result of higher interest
rates. The loss in the Netherlands
was driven by hedge ineffectiveness, which was only partly offset
by the benefit from higher interest rates and credit spreads.
Realized gains on investments
Realized gains on investments amounted to EUR 134 million. These were primarily related to
portfolio rebalancing in the
Netherlands in a low rate environment.
Impairment charges
Gross impairments remained low as a result of the favorable credit
environment. This, in combination with net recoveries, led to a
positive result of EUR 7 million in
the second quarter of 2015.
Other charges
Other charges amounted to EUR 11
million, the result of charges for policyholder taxes in the
United Kingdom which were offset
by an equal amount in the income tax line.
Run-off businesses
The result from run-off businesses improved to EUR 3 million.
Income tax
Income tax amounted to EUR 39 million
in the second quarter, driven by tax benefits in the United States and the United Kingdom. The effective tax rate on
underlying earnings was 21%, impacted favorably by tax credits
related to solar energy investments in the United States.
Return on equity
Return on equity was 8.2% in the second quarter of 2015, lower than
prior year due to higher shareholders' equity. Return on equity for
Aegon's ongoing businesses, excluding the capital allocated to the
run-off businesses, amounted to 8.9% over the same period.
Operating expenses
In the second quarter, operating expenses increased by 14% to
EUR 923 million, driven by a stronger
US dollar, higher investments in technology-related initiatives and
project related expenses. At constant currencies, the increase was
2%.
Sales
Aegon's total sales were up 18% to EUR 2.4
billion in the second quarter of 2015, the result of a
stronger US dollar, higher asset management deposits and increased
indexed universal life sales. Gross deposits increased by 29%,
driven by higher deposits in Aegon Asset Management and strong
growth in bank deposits in the
Netherlands. Net deposits, excluding run-off businesses,
declined to EUR 3.3 billion. This was
due to lower net inflows in Aegon Asset Management and lower net
inflows in variable annuities, as a result of the successful
enhanced alternative lump sum offer for the legacy GMIB block. New
life sales were up 1% to EUR 518
million, as higher indexed universal life sales in
the United States and favorable
currency movements more than offset lower sales in the Netherlands and United Kingdom. New premium production for
accident & health and general insurance was down slightly to
EUR 248 million, as the effect of a
stronger US dollar was more than offset by lower portfolio
takeovers in the United
States.
Market consistent value of new business
The market consistent value of new business amounted to
EUR 183 million. The positive effect
of currency movements and product adjustments in the United States was more than offset by the
negative impact of lower interest rates.
Revenue-generating investments
Revenue-generating investments increased by 1% during the second
quarter of 2015 to
EUR 645 billion. This increase was
driven by the acquisition of the 25% stake in La Banque Postale
Asset Management and net inflows, which more than offset the
unfavorable effect of market movements resulting from higher
interest rates on the fixed income portfolio.
Capital management
Shareholders' equity declined EUR 2.4
billion compared with the end of the first quarter of 2015
to
EUR 25.0 billion on June 30, 2015. This was mainly caused by higher
interest rates, which resulted in lower revaluation reserves on
fixed income portfolios. The revaluation reserves were down by
EUR 2.7 billion to EUR 7.2 billion.
Aegon's shareholders' equity, excluding revaluation reserves and
defined benefit plan remeasurements, declined to EUR 19.3 billion - or EUR
9.09 per common share - at the end of the second quarter.
This was driven by unfavorable currency movements and the payment
of the final dividend for 2014, which more than offset net income
generated during the quarter.
The gross leverage ratio further improved to 27.7% in the second
quarter, well within the target range of 26-30%, driven by earnings
generated in the quarter, net of the payment of the final dividend.
Excess capital in the holding increased to EUR 1.5 billion. Dividends of EUR 0.6 billion paid to the holding by
the United States were largely
offset by the payment of the final dividend for 2014, the
investment in La Banque Postale Asset Management, interest
payments, the effect of currency hedges and operating expenses.
Aegon's Insurance Group Directive (IGD) solvency ratio declined
to 206% in the second quarter, mainly driven by negative market
impacts. The capital in excess of the S&P AA threshold in
the United States declined to
USD 1.0 billion, due to dividends
paid to the holding and negative market impacts. In the Netherlands, the IGD ratio, excluding
Aegon Bank, declined to ~225%, driven by adverse market impacts.
The Pillar I ratio in the United
Kingdom, including the with-profit fund, remained stable at
~135%.
Aegon has obtained more clarity from the regulator on a number
of items regarding Solvency II, which include amongst others
volatility adjuster modelling in the
Netherlands, use of matching adjustment in the United Kingdom and calibration of the US RBC
ratio conversion at 250%. As a result, the company expects its
Solvency II ratio to be in a tightened range of 140% to 170%, as
there are still uncertainties remaining. Furthermore, Aegon has
applied for the use of its internal model and is currently awaiting
regulatory approval.
Operational free cash flows
Operational free cash flows excluding market impacts and one-time
items amounted to EUR 388 million in
the second quarter of 2015. The one-time items of EUR 256 million were primarily related to tax
benefits arising from the re-domestication of a block of variable
annuity business to the United
States. Negative market impacts amounted to EUR 677 million and were mainly the result of
interest rate mismatches and hedge losses in the Netherlands and the United States. Operational free cash flows
including market impacts and one-time items amounted to a negative
EUR 34 million for the quarter.
Interim dividend
Aegon aims to pay out a sustainable, growing dividend, in line
with the growth of its cash flows. This policy is reflected in the
increase of the 2015 interim dividend to EUR
0.12 per common share. The interim 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 will neutralize the dilutive effect of the stock dividend on
earnings per share.
Aegon's Euronext-listed shares will be quoted ex-dividend on
August 21, 2015, whereas its
NYSE-listed shares will be quoted ex-dividend on August 20, 2015. The record date is August 24, 2015. The election period for
shareholders will run from August 26
up to and including September 11,
2015. The stock fraction will be based on the average share
price on Euronext Amsterdam from September 7
through September 11, 2015. The stock dividend ratio will be
announced on September 15, 2015 and
the dividend will be payable as of September
18, 2015.
Financial overview, Q2 2015 geographically
Holding,
other
The United New activities &
EUR millions Americas Netherlands Kingdom Markets eliminations Total
Underlying earnings before
tax by line of business
Life 110 80 28 9 - 227
Individual savings and
retirement products 157 - - (3) - 154
Pensions 88 51 6 3 - 148
Non-life - (1) - 8 - 8
Asset Management - - - 46 - 47
Other - 3 - - (41) (38)
Share in underlying earnings before
tax of associates 2 2 - (1) - 4
Underlying earnings before tax 358 136 34 62 (41) 549
Fair value items (288) (117) (7) (3) 123 (293)
Realized gains / (losses) on
investments (25) 101 54 4 - 134
Net impairments 9 (3) - 1 - 7
Other income / (charges) - - (11) - - (11)
Run-off businesses 3 - - - - 3
Income before tax 55 117 70 63 82 389
Income tax 26 (26) 5 (24) (20) (39)
Net income 82 91 75 39 63 350
Net underlying earnings 278 106 38 38 (28) 433
Employee numbers
Jun. 30, 2015 Mar. 31, 2015 Dec. 31, 2014
Employees 28,241 27,824 28,602
of which agents 5,207 5,020 5,713
of which Aegon's share of employees in
joint ventures and associates 1,694 1,628 1,614
Full version 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 Q2 2015 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:
+1-646-254-3362
United Kingdom:
+44-203-427-1919
The Netherlands:
+31-20-716-8256
Passcode: 7116860
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 20 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.
All comparisons in this release are against the second quarter
of 2014, unless stated otherwise.
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
PRN NLD