Aegon 4Q Net Profit Gains From U.S. Tax Reform
February 15 2018 - 2:43AM
Dow Jones News
By Maryam Cockar
Aegon NV (AGN.AE) said Thursday that net profit for the fourth
quarter of 2017 increased significantly thanks to a $554 million
gain from U.S. tax reform.
For the quarter ended Dec. 31 the Dutch insurer said net profit
was 986 million euros ($1.23 billion) compared with EUR470 million
a year earlier.
Sales in the period increased to EUR3.89 billion from EUR2.73
billion the previous year, it said.
The Amsterdam-listed company raised its final dividend to
EUR0.14 from EUR0.13 last year, bringing the full-year dividend to
EUR0.27, up from EUR0.26.
Aegon's Solvency II ratio, a measure of the company's ability to
meet its financial obligations, rose to 201% from 195% in the
quarter. The company said a strong business performance and
divestments more than offset adverse impacts in the period.
Aegon estimates that its U.S. corporate tax rate in 2018 will
fall to about 16% to 18%. This is expected to increase 2018 net
underlying earnings by $140 million.
The U.S. tax law passed in December includes a reduction of the
corporate-tax rate to 21% from 35% and limits on the deductibility
of corporate interest payments.
Write to Maryam Cockar at maryam.cockar@dowjones.com
(END) Dow Jones Newswires
February 15, 2018 02:28 ET (07:28 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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