AEGON reports earnings and income rises
by Gill Montia
Story link: AEGON reports earnings and income rises
AEGON NV has reported a rise in both underlying earnings and net income during the third quarter of 2010.
The group’s underlying earnings before tax increased by 21% compared to a year earlier, to €473 million, with net income rising to €657 million.
New life sales were up 7%, to €527 million (driven by increased sales in the US, UK and New Markets), and the group saw gross deposits rise 38%, to €9.4 billion.
Turning to the group’s performance in the UK, Q3 highlights for AEGON UK include an underlying earnings increase to £24 million and a 3% rise in life and pensions new business, to £219 million, compared with the third quarter of 2009.
The Dutch insurer’s strategy to restructure and refocus the UK business is apparently “progressing to plan”; the company aims to sharpen its focus on the At-Retirement and Workplace Savings markets and reduce operating costs by 25%.
AEGON UK chief executive, Otto Thoresen, commented: “This is a time of both challenge and opportunity for the UK business as we move through our restructuring programme and therefore I am pleased to see strong earnings growth continuing.”
Mr Thoresen also warned of “some hard decisions in the short term to achieve what we want for the business in the long term”.