By Adam Clark

Dutch insurance and asset-management company Aegon NV (AGN.AE) said Thursday that it will sell its businesses in the Czech Republic and Slovakia to peer NN Group NV (NN.AE), and reported a rise in underlying earnings.

Aegon said it will sell the Czech and Slovakian businesses for 155 million euros ($176.6 million) as it focuses its portfolio on key markets. The company said it expects a book gain of EUR80 million and a one percentage point boost to its solvency ratio from the sale.

The company said its underlying earnings for the first half of 2018 rose 2% to EUR1.06 billion, or 10% in constant currencies. Aegon said the rise was due to expense savings, a higher investment margin in the Netherlands and growth in Asia.

Net income fell to EUR491 million from EUR907 million in the year-earlier half, due to restructuring charges, a loss on the sale of its Irish business, and realized losses on investments.

In the insurance business, new life sales fell 2% to EUR422 million in constant currency. Accident-and-health and general insurance sales fell 48% to EUR274 million, as Aegon withdrew from travel and stop-loss insurance in the U.S. However, net deposits rose to EUR3.89 billion on asset-management inflows.

Aegon raised its interim dividend to EUR0.14 a share. Its Solvency II ratio, a measure of balance-sheet strength, rose 14 percentage points from the end of 2017 to 215%.

Write to Adam Clark at adam.clark@dowjones.com

(END) Dow Jones Newswires

August 16, 2018 02:04 ET (06:04 GMT)