Aegon Reports Net Income of EUR 358 Million in Q3 2016
THE HAGUE, The Netherlands, November 10, 2016 /PRNewswire/ --
Solid earnings supported by expense savings - limited impact from assumption changes and model updates
- Underlying earnings of EUR 461 million[*]; realized expense savings and favorable equity markets were more than offset by the effects of adverse US mortality experience and lower interest rates
- Limited net impact from assumption changes and model updates of EUR (81) million; all reported in other charges[*]
- Net income of EUR 358 million; gains from fair value items offset by other charges
- Return on equity increases to 7.7%
Sales growth driven by fee-businesses - strong gross deposits of EUR 25 billion
- Gross deposits increase by 19% to EUR 25 billion mainly from US retirement plans and asset management. Net outflows of EUR 2.5 billion as a result of anticipated contract discontinuances in business acquired from Mercer
- New life sales decline by 15% to EUR 219 million resulting from lower universal life sales and strict pricing policy
- Accident & health and general insurance sales down by 5% to EUR 218 million, mainly due to product exits in US
- Market consistent value of new business decreases to EUR 70 million due to lower interest rates and VA sales
All capital metrics continue to be within target ranges
- Solvency II ratio declined slightly during the third quarter to an estimated 156% as a result of adverse market impacts; immaterial impact on group ratio from assumption changes and model updates
- Capital generation of EUR 0.3 billion excluding market impacts and one-time items of EUR (0.2) billion
- Holding excess capital stable at EUR 1.1 billion as remittances from the units offset dividends to shareholders
- Gross leverage ratio improves to 29.5% driven by retained earnings
Statement of Alex Wynaendts, CEO
Throughout the third quarter, we further executed on our key strategic objectives by successfully reducing our costs, maintaining our strong capital position and growing our profitable fee-based businesses. At the same time, we continue to invest in new technologies to support our increased interaction with customers, and in innovative products to address their growing needs.
Aegon's Solvency II ratio remains strong and our management actions enabled us to mitigate adverse market impacts. While our annual assumption changes and model updates had a limited impact on earnings, there was no impact on our capital position or capital generation going forward. Earnings from our US life insurance business continued to be volatile as a result of higher than expected claims.
We are particularly pleased by gross deposits of EUR 25 billion during the quarter. In the US, the integration of Mercer's defined contribution retirement plan administration business is on track. We did experience outflows following the acquisition of this business, as anticipated.
All-in-all, we are making continued progress to deliver on our strategic priorities aimed at positioning Aegon to achieve growth and deliver value to all our stakeholders.
Strategic highlights
- Aegon to exit Ukrainian market by selling Aegon Life Ukraine to TAS Group
- Insurance consortium including Aegon launches the Blockchain Insurance Industry Initiative B3i
- Aegon maintains a leading position in the Dow Jones Sustainability Index
- Transamerica announces a new retirement plan partnership with Mercer
Aegon's ambition
Aegon's ambition is to be a trusted partner for financial solutions at every stage of life, and to be recognized by its customers, business partners and wider society as a company that puts the interests of its customers first in everything it does. In addition, Aegon wants to be regarded by its employees as an employer of choice, engaging and enabling them to succeed. This ambition is supported by four strategic objectives embedded in all Aegon businesses: Optimized portfolio, Operational excellence, Customer loyalty, and Empowered employees.
Optimized portfolio
On September 22, Aegon entered into an agreement to sell 100% of its shares of Aegon Life Ukraine to TAS Group, and will exit the Ukrainian market. The deal is subject to customary closing conditions, including regulatory approvals. The transaction is expected to be completed by January 2017.
With the aim to further capture growth opportunities in Brazil, Mongeral Aegon and BANCOOB (Banco Cooperativo do Brasil) received regulatory approval in August 2016 to establish a joint venture to provide life insurance and pension solutions within the SICOOB System. SICOOB is the largest cooperative financial system in the country, with almost 4 million associates and 2,200 points of service. BANCOOB is a private commercial bank owned by the credit cooperative entities affiliated with the SICOOB system. The joint venture represents a further expansion into bank distribution for Mongeral Aegon, which already serves over 2.5 million customers nationwide through over 4,000 broker partners.
Operational excellence
Aegon in conjunction with Allianz, Munich Re, Swiss Re and Zurich launched the Blockchain Insurance Industry Initiative, B3i. The initiative aims to explore the potential of distributed ledger technologies to better serve clients through faster, more convenient and secure services. If Blockchain technology proves viable, it could streamline paper work and reconciliations for (re-)insurance contracts and accelerate information and money flows, while at the same time greatly improving auditability. The initiative, which is open to other insurers and reinsurers, is a pilot project that aims to achieve a proof-of-concept for inter-group retrocessions by the use of Blockchain technology. The founding members aim to develop standards and processes for industry-wide usage, and to facilitate the transition from individual company use cases to viable solutions across the entire insurance value chain.
Aegon maintained its leading position in the Dow Jones Sustainability Index, with a score of 82 out of 100, compared with an industry average of 50. The index tracks the performance of the leading large companies worldwide on a variety of categories including governance, remuneration, compliance, environmental footprint and transparent reporting. Aegon again proved itself to be one of the leading companies in its sector in terms of sustainability, remaining in the top 10 percent of the financial services industry. Aegon scored particularly well on its commitments to the Principles for Sustainable Insurance, Risk management, and Tax Policies and Practices. Aegon's new Global Tax Policy and Principles of Conduct contributed to an increase of 14 percentage points in the Tax Strategy category.
Customer loyalty
Transamerica announced a new partnership with Mercer on October 5 for Mercer's employer clients. Mercer developed a solution for its employer clients that enables them to transfer fiduciary responsibility. The company did, however, need a partner to sell its new solution because Mercer sold its recordkeeping business to Transamerica in 2015. The new arrangement ensures that every plan for which Transamerica assumes fiduciary responsibility will have relatively the same design and pricing structure to minimize customization.
This innovative approach makes the products more efficient and learnings from this new agreement can be applied to products Transamerica offers directly to employers itself. The first plans are expected to convert on January 1, 2017.
On September 19, Transamerica launched the HigherEd Retirement Consortium[SM], a new multiple employer retirement plan designed to help private colleges and universities merge their employee retirement plans. The new solution assists employers by simplifying plan administration, managing fiduciary responsibilities, taking advantage of expert plan management, and receiving economies of scale in administrative and investment pricing. The plan also offers an open architecture investment platform with no proprietary fund requirements.
Empowered employees
Aegon's global 'Future Fit' strategy is empowering Aegon employees to be fit for the new digital, connected and data-driven world. Key areas of focus include enabling employees through providing the infrastructure, tools and training needed to exceed customers' expectations. Furthermore, initiatives such as the Digital Accelerator Program in Aegon UK and Aegon Hungary, and the Global Aegon Analytical Academy, an annual traineeship for employees to enhance data analytical capabilities across the company, illustrate how digital capabilities and expertise are being improved across the company.
Aegon's Digital Center of Excellence held its first ever Hackathon, a 24 hour pop-up initiative that provided 36 Aegon employees from Europe and Asia an opportunity to work together and collaborate on innovate new digital initiatives. The event enabled Aegon's employees to think and act like they were working for a technology start-up company, by allowing them to freely conceptualize, design and pitch prototypes of their ideas to investors for funding. At the conclusion of the event, eight viable digital and data-driven initiatives were identified for further development and potential implementation within various business units.
Key performance indicators
YTD YTD
EUR millions [11b],[ 11c] Notes Q3 2016 Q2 2016 % Q3 2015 % 2016 2015 %
Underlying earnings
before tax * 1 461 435 6 495 (7) 1,359 1,432 (5)
Net income / (loss) 358 (385) - (551) - 116 57 103
Sales 2 2,904 2,765 5 2,564 13 9,229 7,524 23
Market consistent value
of new business 3 70 100 (30) 125 (44) 302 448 (33)
Return on equity 4 7.7% 6.8% 14 7.6% 2 7.2% 7.2% 1
* In Q3 2016 the results from actuarial assumption updates will be reported as part of 'Other income/(charges)'.
Previously, these impacts were reflected in underlying earnings or fair value items.
The comparative numbers have been updated to reflect this change.
Financial overview
EUR millions Notes Q3 2016 Q2 2016 % Q3 2015 % YTD 2016 YTD 2015 %
Underlying earnings
before tax
Americas 307 270 14 339 (9) 860 986 (13)
Europe 151 160 (6) 137 11 481 417 15
Asia 6 1 - 18 (65) 8 17 (55)
Asset Management 32 37 (12) 40 (19) 114 132 (14)
Holding and other (35) (33) (7) (38) 8 (105) (122) 14
Underlying earnings
before tax 461 435 6 495 (7) 1,359 1,432 (5)
Fair value items 84 (358) - (161) - (632) (612) (3)
Realized gains / (losses)
on investments 21 229 (91) 36 (40) 305 288 6
Net impairments 6 (23) - (12) - (53) (15) -
Other income / (charges) (72) (656) 89 (988) 93 (734) (999) 27
Run-off businesses 8 18 (55) 35 (76) 55 68 (19)
Income before tax 510 (355) - (595) - 300 161 87
Income tax (152) (30) - 44 - (183) (103) (77)
Net income / (loss) 358 (385) - (551) - 116 57 103
Net income / (loss)
attributable to:
Equity holders of Aegon N.V. 358 (385) - (551) - 116 57 105
Net underlying earnings 349 312 12 387 (10) 1,012 1,100 (8)
Commissions and expenses 1,638 1,589 3 1,540 6 4,971 5,072 (2)
of which operating expenses 9 900 926 (3) 912 (1) 2,786 2,737 2
New life sales
Life single premiums 479 489 (2) 686 (30) 1,578 2,262 (30)
Life recurring premiums
annualized 171 195 (12) 190 (10) 571 605 (6)
Total recurring plus 1/10
single 219 244 (10) 259 (15) 729 832 (12)
New life sales 10
Americas 127 138 (8) 148 (14) 409 447 (8)
Europe 64 75 (14) 69 (6) 224 238 (6)
Asia 28 31 (9) 42 (33) 96 147 (34)
Total recurring plus 1/10
single 219 244 (10) 259 (15) 729 832 (12)
New premium production
accident and health insurance 198 199 - 212 (6) 658 747 (12)
New premium production general
insurance 20 27 (25) 18 14 71 59 20
Gross deposits
(on and off balance) 10
Americas 9,375 9,265 1 7,868 19 32,112 28,488 13
Europe 2,769 3,088 (10) 2,595 7 9,298 8,381 11
Asia 83 94 (12) 52 60 250 345 (28)
Asset Management 12,442 10,506 18 10,240 22 36,040 21,643 67
Total gross deposits 24,669 22,953 7 20,756 19 77,700 58,857 32
Net deposits
(on and off balance) 10
Americas (3,711) (56) - 711 - 1,058 7,028 (85)
Europe (41) 159 - (190) 79 849 527 61
Asia 69 80 (14) 40 72 208 303 (31)
Asset Management 1,380 1,046 32 3,505 (61) 4,666 6,574 (29)
Total net deposits excluding
run-off businesses (2,303) 1,229 - 4,065 - 6,781 14,432 (53)
Run-off businesses (237) (103) (129) (294) 20 (580) (618) 6
Total net deposits / (outflows) (2,539) 1,125 - 3,771 - 6,201 13,814 (55)
Revenue-generating investments
Sep. 30, Jun. 30, Dec. 31,
2016 2016 % 2015 %
Revenue-generating investments (total) 723,485 716,746 1 710,458 2
Investments general account 159,053 159,933 (1) 160,792 (1)
Investments for account of policyholders 197,493 194,512 2 200,226 (1)
Off balance sheet investments third parties 366,939 362,301 1 349,440 5
Operational highlights
Actuarial and economic assumption changes and model updates
Aegon reviews its actuarial and economic assumptions annually in the third quarter. In addition, as part of an ongoing commitment to deliver operational excellence, the company reviews and refines its models where necessary. These assumption changes and model updates on balance accounted for charges of EUR 81 million in the third quarter of 2016. As of this quarter, actuarial and economic assumption changes and model updates are all included in other income / (charges). These items were previously reported across underlying earnings, fair value items and other income / (charges). Presenting the impacts from assumption changes and model updates in one place improves transparency of Aegon's results. The comparative numbers have been updated to reflect this change.
Underlying earnings before tax
Aegon's underlying earnings before tax in the third quarter of 2016 declined by 7% compared with the third quarter of 2015 to EUR 461 million. Expense savings and favorable market impacts were more than offset by adverse claims experience in the United States and negative adjustments to intangible assets related to lower than anticipated reinvestment yields. Adverse claims experience and lower than anticipated reinvestment yields in the third quarter of 2016 amounted to EUR 13 million and EUR 23 million, respectively.
Underlying earnings from the Americas declined to EUR 307 million. This was caused by adverse mortality experience and the negative adjustment to intangible assets related to lower than anticipated reinvestment yields, which more than offset the effects of favorable morbidity experience, favorable equity markets, and reduced expenses. The latter was driven by the benefit from management actions leading to expense savings.
In Europe, underlying earnings increased to EUR 151 million. This increase was driven by lower amortization of deferred policy acquisition costs (DPAC) in the United Kingdom following the write down of DPAC related to upgrading customers to the retirement platform in the fourth quarter of 2015.
The result from Aegon's operations in Asia was down to EUR 6 million, as favorable mortality was more than offset by the negative impact from lower than anticipated investment yields.
Underlying earnings from Aegon Asset Management declined to EUR 32 million, mainly as a result of increased expenses due to continued investments in the growth strategy in addition to lower management fees and unfavorable currency movements.
The result from the holding improved to a loss of EUR 35 million, resulting from lower funding costs after the redemption of a senior bond in December 2015.
Net income
Net income amounted to EUR 358 million. Other charges as a result of assumption changes and model updates were more than offset by gains from fair value items.
Fair value items
The result from fair value items totaled EUR 84 million. This was mainly driven by credit spread tightening and favorable investment returns in the United States and positive real estate revaluations in the Netherlands.
Realized gains on investments
Realized gains on investments decreased to EUR 21 million. Gains on the sale of assets related to the divestment of the annuity book in the United Kingdom and normal trading activity more than offset losses in the Americas.
Impairment charges
Net recoveries of EUR 6 million for the quarter were the result of net recoveries in the Americas which more than offset impairments on the consumer loan portfolio in the Netherlands.
Other charges
Other charges amounted to EUR 72 million as a result of the net impact of assumption changes, model updates and other items. A charge of EUR 81 million has been recorded in other charges in respect of assumption changes and model updates. The impact is mainly attributable to Aegon's businesses in the US. Assumption changes and model updates in the US from long-term care led to a net negative impact of EUR 100 million. These were the result of experience updates including morbidity, termination rates and utilization assumptions. For the other business lines in the US, assumption changes and model updates largely offset each other. The main items were the refinement of modelling of crediting rates on indexed universal life policies and management actions, which together offset lower lapse assumptions on certain secondary guarantee universal life insurance blocks. Furthermore, model updates in the guarantee provision resulted in a benefit of EUR 28 million in the Netherlands.
Run-off businesses
Earnings from run-off businesses declined to EUR 8 million due to unfavorable mortality experience in the payout annuities block and a lower result in the reinsurance line of business.
Income tax
Income tax amounted to EUR 152 million in the third quarter, which is in line with the average nominal tax rate for the group. The effective tax rate on underlying earnings was 24%.
Return on equity
Return on equity increased to 7.7% in the third quarter of 2016, as lower net underlying earnings were more than offset by lower shareholders' equity as a result of capital returned to shareholders and the write down of DPAC related to upgrading customers to the UK retirement platform in the fourth quarter of 2015.
Operating expenses
Operating expenses decreased by 1% compared with the third quarter of 2015 to EUR 900 million. Lower operating expenses in the Americas resulted from expense savings, and lower sales-related and other variable operating expenses. This was partly offset by the acquisition of Mercer's defined contribution business in the United States, expenses related to the acquisitions of Cofunds and BlackRock's defined contribution business in the United Kingdom, and higher Solvency II-related expenses and investments in new business initiatives in the Netherlands.
Sales
Aegon's total sales increased by 13% to EUR 2.9 billion in the third quarter of 2016. This increase was the result of higher gross deposits, which were up 19% to EUR 24.7 billion. Retirement Plans deposits increased due to the inclusion of deposits in the business acquired from Mercer, in addition to higher takeover and recurring deposits. Asset Management deposits increased mainly due to higher recognized gross deposits in Aegon's Chinese asset management joint venture in addition to higher inflows in the Netherlands and in the Americas. Net outflows amounted to EUR 2.5 billion and were mainly driven by net outflows on the business acquired from Mercer. The latter is in line with the anticipated lapse behavior when acquiring a block of retirement business.
New life sales declined by 15% to EUR 219 million, mainly driven by Aegon's adherence to its strict pricing policy in the current low interest rate environment. In addition, universal life sales were impacted by new sales force training programs, which led to a decline in the recruitment of new agents. In the longer term these programs should have a favorable impact on sales. New premium production for accident & health and general insurance was down by 5% to EUR 218 million due to product exits in the United States.
Market consistent value of new business
The market consistent value of new business declined to EUR 70 million. This was mainly due to the negative impact from lower interest rates and lower variable annuity sales following the product adjustments implemented last year.
Revenue-generating investments
Revenue-generating investments were up 1% during the third quarter of 2016 to EUR 723 billion, as net outflows were more than offset by favorable market movements.
Capital management
Shareholders' equity declined by EUR 0.8 billion compared with the end of the previous quarter to EUR 21.1 billion on September 30, 2016, mainly as a result of lower revaluation reserves. Aegon's shareholders' equity, excluding revaluation reserves and defined benefit plan remeasurements, increased to EUR 16.3 billion - or EUR 7.84 per common share - at the end of the third quarter. Net income for the quarter more than offset the payment of the 2016 interim dividend. The gross leverage ratio improved to 29.5% in the third quarter, driven by retained earnings.
Holding excess capital remained stable at EUR 1.1 billion as net remittances from the units and a tax benefit offset dividends paid to shareholders and holding operating expenses.
Capital generation of the operating units excluding market impacts and one-time items amounted to EUR 0.3 billion in the third quarter of 2016. Market impacts in the quarter amounted to EUR (0.3) billion, mainly due to the effects of lower interest rates and credit spreads on Aegon's own employee pension plan provisions in the United Kingdom and the Netherlands, and a lower benefit from the volatility adjuster. One-time items amounted to EUR 0.2 billion, which were driven by management actions in the Netherlands and implementation of a XXX reserve financing solution with an external reinsurer. Assumption changes and model updates had an immaterial impact on the capital generation, as the benefits from assumption changes and model updates in the United States and updated longevity assumptions in the United Kingdom were offset by the implementation of updated longevity assumptions in the Netherlands. Capital generation including market impacts and one-time items amounted to EUR 0.1 billion for the quarter.
Aegon's Solvency II ratio decreased slightly to an estimated 156% in the third quarter as adverse market impacts and the interim 2016 dividend more than offset management actions and capital generation.
Full version press release
Use this link for the full version of the press release.
Additional information
The Hague - November 10, 2016
Presentation
The conference call presentation is available on aegon.com as of 7.30 a.m. CET.
Supplements
Aegon's Q3 2016 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: +1 719 457 1036
United Kingdom: +44 203 043 2002
The Netherlands: +31 20 721 9251
Passcode: 2727072
Two hours after the conference call, a replay will be available on 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, market consistent value of new business and return on equity. 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. Return on equity is a ratio using a non-IFRS measure and is calculated by dividing the net underlying earnings after cost of leverage by the average shareholders' equity, the revaluation reserve and the reserves related to defined benefit plans. 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.
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 Asia, and in 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;
- Consequences of the anticipated exit of the United Kingdom from the European Union;
- 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, taxation of Aegon companies, the products Aegon sells, and the attractiveness of certain products to its consumers;
- Regulatory changes relating to the pensions, investment, and insurance industries in the jurisdictions in which Aegon operates;
- Standard setting initiatives of supranational standard setting bodies such as the Financial Stability Board and the International Association of Insurance Supervisors or changes to such standards that may have an impact on regional (such as EU), national or US federal or state level financial regulation or the application thereof to Aegon, including the designation of Aegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII).
- Changes in customer behavior and public opinion in general related to, among other things, the type of products 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, which may affect Aegon's reported results and shareholders' equity;
- Aegon's projected results are highly sensitive to complex mathematical models of financial markets, mortality, longevity, and other dynamic systems subject to shocks and unpredictable volatility. Should assumptions to these models later prove incorrect, or should errors in those models escape the controls in place to detect them, future performance will vary from projected results;
- 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.
- This press release contains information that qualifies, or may qualify, as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
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.
Media relations
Debora de Laaf
+31(0)70-344-8730
gcc@aegon.com
Investor relations
Willem van den Berg
+31(0)70-344-8305
ir@aegon.com
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