Aegon 4Q Net Profit Gains From U.S. Tax Reform

By Maryam Cockar

Aegon NV (AGN.AE) said Thursday that net profit for the fourth quarter of 2017 increased significantly thanks to a $554 million gain from U.S. tax reform.

For the quarter ended Dec. 31 the Dutch insurer said net profit was 986 million euros ($1.23 billion) compared with EUR470 million a year earlier.

Sales in the period increased to EUR3.89 billion from EUR2.73 billion the previous year, it said.

The Amsterdam-listed company raised its final dividend to EUR0.14 from EUR0.13 last year, bringing the full-year dividend to EUR0.27, up from EUR0.26.

Aegon's Solvency II ratio, a measure of the company's ability to meet its financial obligations, rose to 201% from 195% in the quarter. The company said a strong business performance and divestments more than offset adverse impacts in the period.

Aegon estimates that its U.S. corporate tax rate in 2018 will fall to about 16% to 18%. This is expected to increase 2018 net underlying earnings by $140 million.

The U.S. tax law passed in December includes a reduction of the corporate-tax rate to 21% from 35% and limits on the deductibility of corporate interest payments.

Write to Maryam Cockar at [e-mail]

(END) Dow Jones Newswires

February 15, 2018 02:28 ET (07:28 GMT)

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