Aegon Posts Slightly Wider-Than-Expected 3rd-Quarter Net Loss

By Ian Walker

Dutch insurer Aegon NV (AGN.AE) Thursday reported a slightly bigger-than-expected net loss in the third quarter, which it blamed on assumption changes, the continuing model refinement program and the anticipated book loss on the sale of its low-return business in Canada.

The company, which generates most of its revenue in the U.S. through its Transamerica unit, said its Solvency I ratio--a measure of financial stability--has increased to 225% as a result of divestments and one-time adjustments.

At the time of its half-year earnings in August, Aegon lowered its solvency guidance to a range of 140% to 170% from 150% to 200%. Aegon also said it had recently submitted its internal risk model for approval under the new regulatory framework known as Solvency II, which will replace the current regulation next year.

"The progress we have recently made in preparing for Solvency II gives us confidence that we are well positioned to operate successfully in this new regulatory framework," Chief Executive Alex Wynaendts said.

For the quarter ended Sept. 30, Aegon recorded a net loss of 524 million euros ($569.52 million), compared with a profit of EUR52 million a year earlier. Also, the latest figure compares with a consensus forecast loss of EUR501 million, based on 20 analysts' estimates taken from the company's website.

Underlying earnings before tax, which strips out exceptional and other one-off items, rose to EUR436 million, compared with EUR291 million for the third quarter of 2014 and analysts' expectations of EUR415 million.

Sales for the quarter rose to EUR2.6 billion, from EUR2.33 billion, due to a stronger U.S. dollar, higher asset management deposits and increased indexed universal life sales, Aegon said.

--Archie van Riemsdijk contributed to this article.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

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November 12, 2015 02:06 ET (07:06 GMT)

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