AEGON Announces Strong Q4 2010 Results
24 Feb, 2011, 06:30 GMT
THE HAGUE, The Netherlands, February 24, 2011 /PRNewswire/ --
- Strong Earnings, Sales and Capital Position
- Underlying Earnings Before tax in Q4 up 2% to EUR 489 Million, Bringing the Total for 2010 to EUR 2 Billion
- Net Income in Q4 of EUR 318 Million Resulting in a net Profit for the Year of EUR 1.8 Billion
- New Life Sales Stable at EUR 558 Million; Full Year Sales up 5% to EUR 2.2 Billion
- Gross Deposits Increased 16% to EUR 7.8 Billion Adding to a Total of EUR 32.6 Billion in Full Year Deposits
- Excess Capital* of EUR 3.8 Billion, of Which EUR 1.7 Billion at the Holding; IGDa) Solvency Ratio of 198%
- Repurchase all Remaining Convertible Core Capital Securities by end of June 2011
- Today's 10% Equity Issue Will Fund Part of EUR 2.25 Billion Required for Repurchase, Allowing AEGON to Maintain its Strong Capital Position and to Achieve the Targeted 75% Core Capital Ratio by year-end 2012
- Remaining Amount Generated From Internal Resources, Including any Proceeds From Divestments
- Sustainable Earnings Growth With an Improved Risk-Return Profile
AEGON is well on track with its transformational process and aims to deliver sustainable earnings growth with an improved risk-return profile. However, underlying earnings and other key metrics in 2011 will be affected by strategic management actions. From this new base, the company announces specific targets today which reflect AEGON's pursuit of these objectives:
- Grow underlying earnings before tax on average by 7 to 10% per annum
- Achieve a return on equity of 10% to 12% in the medium term
- Increase fee businesses to 30% to 35% of underlying earnings before tax
by 2015
- Increase normalized operational free cash flow14 with 30% by 2015
- Intent to resume dividend payments with dividend of EUR 0.10 per common
share related to H2 2011 in May 2012
Statement of Alex Wynaendts, CEO
"AEGON has delivered a strong set of results for the full year 2010. During the year, we have concentrated our efforts on executing a consistent strategy aimed at sharpening our focus on our core business, improving our risk-return profile and executing significant cost reduction programs. As a result of our efforts over the past years, AEGON is a different company today. Today's equity offering, together with internal resources, including proceeds from divestments, will position us to repurchase all remaining core capital securities provided by the Dutch State by the end of June 2011. The equity offering supports our strategy to maintain a strong capital position, including achieving our target ratio of 75% core capital by the end of 2012. After completing the repurchase, we intend to resume dividend payments in May 2012. AEGON has demonstrated its ability to deliver and we are committed to delivering the long-term value that our customers, shareholders and business partners have every reason to expect."
KEY PERFORMANCE INDICATORS
amounts in EUR Notes Q4 Q3 % Q4 % FY FY %
millions b) 2010 2010 2009 2010 2009
Underlying earnings
before tax 1 489 473 3 478 2 1,972 1,185 66
Net income 2 318 657 (52) 393 (19) 1,760 204 -
New life sales 3 558 527 6 557 - 2,213 2,100 5
Gross deposits
excluding run-off
businesses 4 7,813 9,408 (17) 6,723 16 32,580 27,616 18
Value of new business
(VNB) 5 141 120 18 216 (35) 555 767 (28)
Return on equity 6 9.9% 10.0% (1) 9.4% 5 9.8% 5.7% 72
For notes see page 20.
* Excess capital above AA capital adequacy requirements
Supplements: Financial Supplement and Condensed Consolidated Interim Financial Statements Q4 available on www.aegon.com
STRATEGIC HIGHLIGHTS <start_tabble>
- AEGON announces targets to deliver sustainable earnings growth with
improved risk-return profile
- Sharpened focus on core activities and capturing efficiencies in US
- Integration of Asian businesses under leadership of new CEO AEGON Asia
AEGON's AMBITION
To be a leader in all our chosen markets by 2015
AEGON'S STRATEGIC PRIORITIES
- Reallocate capital
- Increase returns
- Optimize ONE AEGON
...resulting in sustainable, profitable growth.
Pursuing sustainable earnings growth with an improved risk-return profile
AEGON will pursue sustainable earnings growth, underpinned by an improved risk-return profile and a strong capital position, with the objective of sustainable cash flows and dividends. AEGON has announced specific targets which reflect the company's pursuit of these objectives.
Underlying earnings before tax in 2011 are expected to be negatively impacted by strategic management actions; the wind-down of small bank BOLI and COLI and the potential divestment of Transamerica Reinsurance. In addition, pension legislation changes in Hungary and Poland are expected to negatively impact underlying earnings.
AEGON's ambition
AEGON's ambition is to become a leader in all its chosen markets by 2015. This means becoming the most recommended life and pensions provider among customers, the preferred partner among distributors and the employer of choice among both current and prospective employees.
Achieving this ambition is based on three strategic priorities: to reallocate capital to areas that offer strong growth prospects and higher returns, to increase returns from the company's existing businesses and to optimize ONE AEGON by increasing efficiency and making better use of the company's global resources.
Reallocate capital
AEGON has taken steps to sharpen its focus on the company's three core businesses: life insurance, pensions and asset management. The company also intends to achieve a greater geographical balance by reallocating capital to the growth markets of Central & Eastern Europe, Asia and Latin America. As part of this approach, AEGON has assessed its businesses to ensure they meet the company's requirements in terms of earnings growth, cash flow generation, return on capital and customer life cycle needs. As a result, AEGON is currently reviewing its strategic options for its life reinsurance business, Transamerica Reinsurance.
As announced in December 2010, AEGON decided to discontinue new sales of executive non-qualified benefit plans and related small bank Bank-Owned and Corporate-Owned Life Insurance (BOLI/COLI) business in the United States. In 2010, underlying earnings before tax from BOLI/COLI amounted to EUR 49 million. As of the first quarter of 2011, earnings from the BOLI/COLI business will no longer be reported in underlying earnings but in the run-off category.
In Spain, AEGON has signed an agreement to expand its life insurance and pension partnership with Banca Civica. The agreement includes the acquisition of a 50% stake in the life insurance business of Caja de Burgos and a strengthening of AEGON's existing partnership with Caja Navarra. Caja de Burgos, Caja Navarra and two other savings banks, Caja Canarias and CajaSol, joined together in 2010 to form Banca Civica. The agreement will give AEGON the exclusive right to distribute its life insurance and pension products through Caja de Burgos's network of 148 branches. Caja de Burgos is the leading savings bank in Spain's northern province of Burgos, with a significant presence in the surrounding areas and more than 550,000 customers. The agreement is subject to various conditions and approvals, including authorization by the European Commission.
Improve risk profile
AEGON has recently further increased equity hedging on its back-book in the Netherlands by extending its current equity hedge program.
During the fourth quarter, AEGON further reduced its already limited exposure to peripheral European sovereign bonds, based on fair value, from EUR 1.5 billion to EUR 1.1 billion at December 31, 2010.
Increase returns
AEGON's aim is to increase returns in all of its businesses by increasing efficiency and delivering operational excellence. AEGON expects to achieve this by further reducing costs while investing in core competences and improving service levels to ensure continued customer loyalty.
In the United States, AEGON will pursue further operational and cost efficiencies by consolidating its operations currently based in Louisville, Kentucky with other existing US locations. Additional efficiencies are also being captured through the consolidation and outsourcing of certain back office activities currently carried out in Cedar Rapids, Iowa. In the United Kingdom, AEGON is taking significant steps to improve its return on capital. AEGON is on track to reduce costs by 25% in its UK life and pensions operations by the end of 2011, and is directing more resources to the key growth At-Retirement and Workplace Savings markets, where AEGON has leading positions. The restructuring program is progressing well and of the targeted reduction in operating expenses of GBP 80 to 85 million annually, already GBP 33 million has been enacted in 2010.
Optimize ONE AEGON
AEGON will implement a new organizational structure for its operations in Asia under the leadership of a newly-established CEO position for Asia. Whereas a number of AEGON's businesses in Asia previously had been managed from the US, under the new structure all Asian based insurance businesses will be managed as one regional division headquartered in Hong Kong. The aim is to leverage product and distribution expertise, capture efficiencies, and pursue organic growth of AEGON's franchise in Asia. The integration, which will be carried out during 2011, is in line with AEGON's strategy to achieve a greater geographical balance in favor of those regions and markets that offer higher growth and returns in the longer-term.
FINANCIAL OVERVIEW
EUR Notes Q4 2010 Q3 2010 % Q4 2009 % FY 2010 FY 2009 %
millions
Underlying
earnings
before tax
Americas 406 376 8 350 16 1,598 817 96
The
Netherlands 87 97 (10) 95 (8) 385 398 (3)
United
Kingdom (6) 28 - 33 - 72 52 38
New markets 59 55 7 48 23 200 170 18
Holding and
other (57) (83) 31 (48) (19) (283) (252)(12)
Underlying
earnings
before tax 489 473 3 478 2 1,972 1,185 66
Fair value
items 30 204 (85) (164) - 221 (544) -
Realized
gains /
(losses) on
investments 255 129 98 315 (19) 658 518 27
Impairment
charges (133) (92) (45) (212) 37 (452) (1,277) 65
Other
income /
(charges) (258) (14) - 5 - (309) (323) 4
Run-off
businesses (28) (28) - (47) 40 (165) (13) -
Income
before tax 355 672 (47) 375 (5) 1,925 (454) -
Income tax (37) (15)(147) 18 - (165) 658 -
Net income 318 657 (52) 393 (19) 1,760 204 -
Net income / (loss)
attributable to:
Equity
holders of
AEGON N.V. 318 657 (52) 393 (19) 1,759 204 -
Minority
interest - - - - - 1 - -
Net
underlying
earnings 387 395 (2) 390 (1) 1,553 1,005 55
Commissions
and
expenses 1,659 1,525 9 1,407 18 6,145 6,046 2
of which
operating
expenses 12 909 835 9 841 8 3,397 3,292 3
New life
sales
Life single
premiums 2,003 1,656 21 2,017 (1) 7,512 7,062 6
Life
recurring
premiums
annualized 358 361 (1) 355 1 1,462 1,393 5
Total
recurring
plus 1/10
single 558 527 6 557 - 2,213 2,100 5
New life
sales
Americas 13 146 171 (15) 143 2 629 566 11
The
Netherlands 113 32 - 93 22 248 239 4
United
Kingdom 224 264 (15) 247 (9) 1,061 1,010 5
New markets 13 75 60 25 74 1 275 285 (4)
Total
recurring
plus 1/10
single 558 527 6 557 - 2,213 2,100 5
New premium
production accident
and health insurance 180 146 23 125 44 622 561 11
New premium
production general
insurance 15 14 7 21 (29) 58 56 4
Gross
deposits
(on and off
balance)
Americas 13 5,757 4,706 22 4,404 31 21,020 19,188 10
The
Netherlands 490 525 (7) 1,107 (56) 2,382 3,434 (31)
United
Kingdom 25 16 56 35 (29) 96 177 (46)
New markets 13 1,541 4,161 (63) 1,177 31 9,082 4,817 89
Total gross
deposits
excluding
run-off
businesses 7,813 9,408 (17) 6,723 16 32,580 27,616 18
Run-off
businesses - - - (4) - - 930 -
Total gross 7,813 9,408 (17) 6,719 16 32,580 28,546 14
deposits
Net
deposits
(on and off
balance)
Americas 13 (578) 535 - 385 - 1,227 3,769 (67)
The
Netherlands (260) (83) - 496 - (221) 1,101 -
United
Kingdom 12 2 - 29 (59) 53 151 (65)
New markets 13 304 3,293 (91) 18 - 3,905 286 -
Total net deposits
excluding run-off
businesses (522) 3,747 - 928 - 4,964 5,307 (6)
Run-off
businesses (1,424) (1,081) (32) (6,513) 78 (6,541) (14,111) 54
Total net
deposits (1,946) 2,666 - (5,585) 65 (1,577) (8,804) 82
REVENUE-GENERATING INVESTMENTS
Dec.31, Sept.30,
2010 2010 %
Revenue-generating
investments (total) 413,191 404,894 2
Investments
general
account 143,188 145,625 (2)
Investments for
account of
policyholders 146,237 140,438 4
Off balance
sheet
investments
third
parties 123,766 118,831 4
OPERATIONAL HIGHLIGHTS
Underlying earnings before tax
AEGON's underlying earnings before tax increased to EUR 489 million in the fourth quarter, a 2% improvement compared with the same quarter last year.
In the Americas, underlying earnings rose to EUR 406 million as higher fee income - related to growth in pension and variable annuity account balances - more than offset lower spread income. This was consistent with AEGON's strategy to increase earnings from fee businesses. Earnings from the Americas included a one-time EUR 28 million favorable employee benefits plan release. In the Netherlands, underlying earnings decreased to EUR 87 million as a result of lower investment income and lower results on mortality. In the United Kingdom, underlying earnings amounted to a loss of EUR 6 million, due to a EUR 30 million charge related to an ongoing program to correct historical issues within customer policy records. Underlying earnings from New Markets increased to EUR 59 million as a result of the inclusion of AEGON Asset Management. Higher funding costs and increased project related expenses resulted in EUR 57 million of costs in the fourth quarter of 2010 for the holding company.
Net income
Net income decreased to EUR 318 million. This was primarily the result of higher underlying earnings, a positive contribution from fair value items and lower impairments offset by lower realized gains and charges mainly related to restructuring in the United States.
Fair value items
In the fourth quarter, results from fair value items amounted to EUR 30 million. In the Americas, most categories showed considerable improvements compared with the fourth quarter 2009, while in the Netherlands the improved results were driven by the fair value of guarantees net of related hedges and better private equity performance.
Realized gains on investments
Realized gains on investments increased to EUR 255 million, primarily as a result of an asset sale of multiple mineral estates located primarily in the Western United States (EUR 183 million). The remainder was realized mainly as a result of normal trading in AEGON's bond portfolios.
Impairment charges
Impairments amounted to EUR 133 million and were mostly linked to US residential mortgage-backed securities, US commercial mortgage loans and Irish banks.
Other charges
Other charges amounted to EUR 258 million and consisted of a number of items. In the United States, the wind-down of small bank BOLI and COLI business and the consolidation of the Louisville operations with other existing US locations as announced in December 2010 resulted in a charge of EUR 206 million.
Consolidation of AEGON's asset management operations led to a EUR 12 million restructuring charge.
A restructuring program is ongoing in the United Kingdom to achieve a 25% cost reduction by the end of 2011. This led to a charge of EUR 6 million in the fourth quarter of 2010.
In Hungary, unfavorable pension legislation changes resulted in a write-down of intangibles of EUR 18 million and a EUR 5 million restructuring charge related to the Hungarian pension operations. In addition, a bank tax in Hungary led to a charge of EUR 5 million.
Run-off businesses
AEGON's run-off businesses in the Americas recorded a loss of EUR 28 million, an improvement over the comparable period last year primarily due to lower account balances and less amortization yield paid on internally transferred assets.
Income tax
Tax charges for the quarter amounted to EUR 37 million. These charges included EUR 17 million in tax benefits related to cross-border intercompany reinsurance transactions and tax benefits of EUR 51 million resulting from the utilization of tax losses for which previously no deferred tax asset was recognized.
Operating expenses
Operating expenses increased 8% compared with the fourth quarter 2009 to EUR 909 million, mainly due to strengthening of the dollar and pound sterling against the euro. However, operating expenses declined 2% during 2010, excluding currency effects, restructuring and US employee benefit plan charges.
New life sales
New life sales for the fourth quarter amounted to EUR 558 million, which was the same level achieved during the comparable quarter last year. Higher sales in the Netherlands as a result of strong pensions sales and continued strong single premium production in Central & Eastern Europe were offset by declines in the Americas and the United Kingdom.
Deposits
Gross deposits, excluding run-off businesses, increased 16% to EUR 7.8 billion driven by US pensions, variable annuities and AEGON Asset Management.
As a result of outflows from fixed annuities and stable value solutions in the US and the Dutch savings business, total outflows for the fourth quarter 2010 amounted to EUR 0.5 billion. For the full year, however, AEGON recorded EUR 5 billion in net deposits driven by strong asset management and US pension sales.
Value of new business
Compared with the fourth quarter 2009, the value of new business declined considerably to EUR 141 million, mainly as a result of the strategic shift from spread to fee business. In the Americas, the value of new business declined as a result of lower sales of fixed annuities and life reinsurance products and lower margins. In the United Kingdom, the main reason was a decrease in immediate annuity sales and margins. In the Netherlands the positive effect of higher pension sales was more than offset by lower margins for life insurance.
Revenue-generating investments
Revenue-generating investments increased 2% compared with the end of the third quarter 2010 to EUR 413 billion, primarily as a result of higher equity markets.
Capital management
At the end of the fourth quarter, AEGON's core capital position amounted to EUR 17.8 billion, excluding revaluation reserves. This was equivalent to 75%7 of the company's total capital base. Repurchase of the Convertible Core Capital Securities issued to the Dutch State will decrease this capital base ratio. However, AEGON aims to bring the proportion of core capital up to at least 75% of total capital by the end of 2012.
The revaluation reserves at December 31, 2010 declined compared with the end of the third quarter to EUR 1 billion, as an increase in risk-free interest rates had a negative impact on the value of fixed income securities. Shareholders' equity declined to EUR 17.2 billion, as the earnings contribution and positive currency effects were more than offset by lower revaluation reserves.
During the fourth quarter, excess capital rose to EUR 3.8 billion. Excess capital in the holding increased to EUR 1.7 billion as a result of dividend payments received from the operating units, while the units were able to increase their excess capital position to EUR 2.1 billion as a result of capital generated in the operations of EUR 1 billion partly offset by new business strain of EUR 0.4 billion. Excess capital was negatively impacted by a lower than expected charge in the Netherlands for longevity of EUR 225 million.
AEGON has agreed with its regulator, the Dutch Central Bank (DNB), that in the current environment it will maintain a capital buffer at the holding of 1.5 times its annual holding expenses. Currently, these holding expenses amount to EUR 0.6 billion on a normalized annual basis, which in effect means a buffer of EUR 0.9 billion for the holding.
At December 31, 2010, AEGON's Insurance Group Directive (IGD) ratio amounted to 198%. Higher regulatory solvency in the United States and the United Kingdom was offset by the Netherlands as result of a charge for longevity.
Dividend policy
AEGON aims to pay out a sustainable dividend to allow equity investors to share in the performance of the company, which can grow over time if performance of the company so allows. After investments in new business to generate organic growth, capital generation in AEGON's operating subsidiaries is available for distribution to the holding company, while maintaining a capital and liquidity position in the operating subsidiaries in line with AEGON's capital management and liquidity risk policies.
AEGON uses cash flows from the operating subsidiaries to pay for holding expenses, including funding costs. The remaining cash flow is available to execute AEGON's strategy and to fund dividends on its shares, subject to maintaining the holding company targeted excess capital. Depending on circumstances, future prospects and other considerations, AEGON may deviate from this target. AEGON will also take capital position, financial flexibility, leverage ratios and strategic considerations into account when declaring or proposing dividends on its common shares.
Under normal circumstances, AEGON would expect to declare an interim dividend when announcing its second quarter results and to propose a final dividend at the Annual General Meeting of Shareholders for approval. Dividends would normally be paid in cash or stock at the election of the shareholder. The relative value of cash and stock dividends may vary. Stock dividends paid may, subject to capital management and other considerations, be repurchased in order to limit dilution.
AEGON intends to resume dividend payments on its common shares after the full repurchase of the core capital securities issued to the Dutch State, which AEGON expects to occur before the end of June 2011. Absent unforeseen circumstances, AEGON intends to propose a final EUR 0.10 dividend per common share at the annual General Meeting of Shareholders in 2012 covering the second half of 2011.
When determining whether to declare or propose a dividend, AEGON has to balance prudence versus offering an attractive return to shareholders, for example in adverse economic and/or financial market conditions. Also, AEGON's operating subsidiaries are subject to (local) insurance regulations which could restrict dividends to be paid to the holding company. There is no requirement or assurance that AEGON will declare and pay any dividends.
ADDITIONAL INFORMATION
The Hague, February 24, 2011
Press conference call
8:00 am CET: Audio webcast on http://www.aegon.com
Analyst & investor presentation / conference call
9:00 am CET: Audio webcast on http://www.aegon.com
Call-in numbers
USA: +1-480-629-9725
UK: +44-207-153-2027
NL: +31-45-631-6901
Record date AGM
The record date for attending and voting at the Annual General Meeting of Shareholders of AEGON N.V. is April 14, 2011. The agenda will be available on AEGON's website from March 31, 2011.
Supplements
AEGON's Q4 2010 Financial Supplement and Condensed Consolidated Interim Financial Statements are available on www.aegon.com.
The full version of this press release is available at: http://www.aegon.com/en/Home/Media/Press-releases/2011/2011/AEGON-announces-strong-Q4-2010-results/
(Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field. Remove the space if one exists.)
About AEGON
As an international life insurance, pension and asset management company based in The Hague, AEGON has businesses in over twenty markets in the Americas, Europe and Asia. AEGON companies employ approximately 27,500 people and have some 40 million customers across the globe.
Full year Full year Third quarter Full year
Key figures - EUR 2010 2009 2010 2009
Underlying earnings
before tax 2.0 billion 1.2 billion 473 million 1.2 billion
New life sales 2.2 billion 2.1 billion 527 million 2.1 billion
Gross deposits
(excl. run-off) 33 billion 28 billion 9.4 billion 28 billion
Revenue generating
investments (end of
period) 413 billion 363 billion 405 billion 363 billion
Cautionary note regarding non-GAAP measures
This press release includes certain non-GAAP financial measures: underlying earnings before tax, net underlying earnings, commission and expenses, operating expenses and value of new business (VNB). The reconciliation of underlying earnings before tax to the most comparable IFRS measure is provided in Note 3 "Segment information" of our Condensed consolidated interim financial statements. VNB 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. We may define and calculate VNB differently than other companies. Please see AEGON's Embedded Value Report dated May 12, 2010 for an explanation of how we define and calculate VNB. AEGON believes that these non-GAAP measures, together with the IFRS information, provide meaningful supplemental information that our management uses to run our business as well as useful information for the investment community to evaluate AEGON's business relative to the businesses of our peers.
Local currencies and constant currency exchange rates
This press release contains certain information about our results and financial condition 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 us presented in EUR, which is the currency of our primary financial statements.
Forward-looking statements
The statements contained in this press release 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. We undertake 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 our fixed income
investment portfolios; and
- 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 we hold;
- The frequency and severity of insured loss events;
- Changes affecting mortality, morbidity, persistence and other factors
that may impact the profitability of our insurance products;
- 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;
- Increasing levels of competition in the Americas, the Netherlands, the
United Kingdom and new markets;
- Changes in laws and regulations, particularly those affecting our
operations, the products we sell, and the attractiveness of certain
products to our consumers;
- Regulatory changes relating to the insurance industry in the
jurisdictions in which we operate;
- 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 our debt ratings issued by recognized rating
organizations and the adverse impact such action may have on our
ability to raise capital and on our liquidity and financial condition;
- Lowering of one or more of insurer financial strength ratings of our
insurance subsidiaries and the adverse impact such action may have on
the premium writings, policy retention, profitability of its insurance
subsidiaries and liquidity;
- The effect of the European Union's Solvency II requirements and other
regulations in other jurisdictions affecting the capital we are
required to maintain;
- Litigation or regulatory action that could require us to pay
significant damages or change the way we do business;
- Customer responsiveness to both new products and distribution channels;
- Competitive, legal, regulatory, or tax changes that affect the
distribution cost of or demand for our products;
- The impact of acquisitions and divestitures, restructurings, product
withdrawals and other unusual items, including our ability to integrate
acquisitions and to obtain the anticipated results and synergies from
acquisitions;
- Our failure to achieve anticipated levels of earnings or operational
efficiencies as well as other cost saving initiatives;
- Our inability to obtain consent from the Dutch Central Bank to
repurchase our Core Capital Securities; and
- Our inability to divest Transamerica Reinsurance on terms acceptable to
us.
Further details of potential risks and uncertainties affecting the company are described in the company's filings with Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report on Form 20-F. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the company 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 the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Contact information
Media relations: Greg Tucker
+31(0)70-344-8956
gcc-ir@aegon.com
Investor relations: Gerbrand Nijman
+31-(0)70-344-8305
877-548-9668 - toll free USA only
ir@aegon.com
http://www.aegon.com
SOURCE AEGON N.V.