Daily Insurance Industry News
Daily Insurance Industry News
Wednesday 20th of March 2019
June 21, 2011

AEGON outlines growth targets

by Gill Montia

Story link: AEGON outlines growth targets

Having recently settled up with the Dutch state regarding its rescue package, AEGON has outlined plans to deliver earnings growth for its businesses in the Americas, the Netherlands, the UK and Central & Eastern Europe.

Full details will be presented at an investor conference today but specifically, AEGON aims to:

Grow underlying earnings before tax on average by 7% to 10% per annum between 2010 and 2015.

Achieve a return on equity of 10% to 12% by 2015.

Increase fee businesses to 30% to 35% of underlying earnings before tax by 2015.

Increase normalized operational free cash flow by 30% by 2015.

Resume dividend payments with dividend of €0.10 per common share related to H2 2011 in May 2012.

According to the insurer, growth in UK cash flows will be driven mainly by lower commission payments and cost reductions.

Commenting on the targets, chief executive officer, Alex Wynaendts, says: “As we transition to a new base following the significant restructuring of our operations, we are confident in our ability to generate solid earnings growth with an improved risk-return profile, pay sustainable dividends to shareholders and, at the same time, become the most-recommended provider among our current and future customers and partners.”


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