Aegon Posts Slightly Wider-Than-Expected 3rd-Quarter Net Loss
November 12 2015 - 2:21AM
Dow Jones News
By Ian Walker
Dutch insurer Aegon NV (AGN.AE) Thursday reported a slightly
bigger-than-expected net loss in the third quarter, which it blamed
on assumption changes, the continuing model refinement program and
the anticipated book loss on the sale of its low-return business in
Canada.
The company, which generates most of its revenue in the U.S.
through its Transamerica unit, said its Solvency I ratio--a measure
of financial stability--has increased to 225% as a result of
divestments and one-time adjustments.
At the time of its half-year earnings in August, Aegon lowered
its solvency guidance to a range of 140% to 170% from 150% to 200%.
Aegon also said it had recently submitted its internal risk model
for approval under the new regulatory framework known as Solvency
II, which will replace the current regulation next year.
"The progress we have recently made in preparing for Solvency II
gives us confidence that we are well positioned to operate
successfully in this new regulatory framework," Chief Executive
Alex Wynaendts said.
For the quarter ended Sept. 30, Aegon recorded a net loss of 524
million euros ($569.52 million), compared with a profit of EUR52
million a year earlier. Also, the latest figure compares with a
consensus forecast loss of EUR501 million, based on 20 analysts'
estimates taken from the company's website.
Underlying earnings before tax, which strips out exceptional and
other one-off items, rose to EUR436 million, compared with EUR291
million for the third quarter of 2014 and analysts' expectations of
EUR415 million.
Sales for the quarter rose to EUR2.6 billion, from EUR2.33
billion, due to a stronger U.S. dollar, higher asset management
deposits and increased indexed universal life sales, Aegon
said.
--Archie van Riemsdijk contributed to this article.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 12, 2015 02:06 ET (07:06 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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