(ABM FN-Dow Jones) Aegon has raised its expectations for the amount of capital the insurer will earn from operations this year after third-quarter results turned out to be stronger than expected, thanks to exceptional items. The insurer announced this on Thursday.
Aegon expects to generate 1.2 billion euros of capital from its operational activities this year, instead of the previously indicated 1.0 billion euros, CEO Lard Friese said in an explanation.
Operationally, 354 million euros in capital was earned in the third quarter, more than the 306 million euros a year earlier. Analysts expected on average a decline to 277 million euros in advance.
After deducting costs for the holding company and other activities, 310 million euros of freshly earned capital remained in the quarter. A year earlier, Aegon recorded 240 million euros, but the sold activities of Aegon Netherlands are no longer included.
After deducting the impact of market movements and exceptional items, 62 million euros remained, compared to 74 million euros negative a year earlier.
Free cash flow was 79 million euros, close to the consensus expectation of 73 million.
Aegon has had a lot of cash since the completion of the takeover of Aegon Nederland by ASR Nederland. That raised 2.2 billion euros, in addition to a 29.99 percent shareholding in ASR. When the books for the third quarter were closed, there was 2.9 billion euros in cash. Aegon is now busy buying back its own shares to get rid of this mountain of cash. Shares worth 473 million euros have now been repurchased, in addition to the payment of 263 million euros in interim dividend.
After completion of the buyback program worth 1.5 billion euros, sometime in 2024, Aegon will still have several hundred million euros left to buy back more of its own shares, analysts at Berenberg expect.
Aegon is not directly affected by the threatened settlement in the Woekerpolis case, which hangs over ASR Nederland and NN Group. At most, ASR’s dividend policy could be jeopardized, causing damage to Aegon’s shareholding. However, Berenberg does not think it will come to that.
The solvency of the American insurance branch Transamerica, according to the American methodology, fell on a quarterly basis from 427 to 422 percent, while that of the British branch rose one percentage point from 166 to 167 percent. Analysts expected virtually unchanged percentages.
Now that Aegon no longer has a significant insurance branch in the Netherlands, it can no longer remain established in our country for the Dutch regulator DNB, under the rules of Solvency II. That is why Aegon is now moving to Bermuda, via a detour through Luxembourg, where many other insurers are also located. This means that the rules for shareholders will also change. However, Aegon remains liable to pay taxes in the Netherlands.
Bron: ABM Financial News
ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms and for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
2023-11-16 06:44:09
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