Aegon provides update on financial transformation and capital management
June 19 2018 - 7:00AM
Business Wire
Today, at Aegon’s first interactive webinar for analysts and
investors, CFO Matt Rider will detail the company’s ongoing actions
to deliver on its financial transformation, approach to capital
management and prioritization in capital deployment.
“We have been transforming our business into a more efficient
and financially predictable company with a strong capital
position”, said Matt Rider. “Looking ahead, we will continue to
focus on further improving efficiency, growing our business
profitably and increasing returns to shareholders.”
Webinar details
The Analyst & Investor Webinar presentation is available at
1.00 pm CET on www.aegon.com. The webinar will commence at 2.00 pm
CET and will be livestreamed, also on the corporate website. A
replay of the webcast will be available later today.
Reporting changes to be better aligned with how the business
is managed
Aegon will implement several reporting changes to reflect the
strategic transformation of its businesses. These changes will
enhance reporting by better aligning disclosures with how the
business is managed, in addition to highlighting potential growth.
The reporting changes will be applied as of the first half results
for 2018, which will be released on Thursday August 16, 2018.
Aegon is today publishing an updated 2017 financial supplement
to reflect, among other changes, the following:
- The Netherlands lines of business have
changed to Life, Non-Life, Banking and Service Business.
Management’s best estimate for returns on alternative assets and
consumer loans have been included in underlying earnings before tax
with over or underperformance included in below the line
items;
- United Kingdom lines of business have
changed to Existing Business and Digital Solutions. Institutional
platform business included in gross deposits on a net deposit
basis, reflecting nature of the business; and
- Scope of MCVNB has been reduced to
Life, Pensions and Health insurance products only.
In addition, the allocation of expenses by product line in the
United States will be changed prospectively as a result of the
business transformation.
About Aegon
Aegon’s roots go back more than 170 years – to the first half of
the nineteenth century. Since then, Aegon has grown into an
international company, with businesses in more than 20 countries in
the Americas, Europe and Asia. Today, Aegon is one of the world’s
leading financial services organizations, providing life insurance,
pensions and asset management. Aegon’s purpose is to help people
achieve a lifetime of financial security. More information on
aegon.com/about.
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Disclaimer
Forward-looking statements
The statements contained in this document that are not
historical facts are forward-looking statements as defined in the
US Private Securities Litigation Reform Act of 1995. The following
are words that identify such forward-looking statements: aim,
believe, estimate, target, intend, may, expect, anticipate,
predict, project, counting on, plan, continue, want, forecast,
goal, should, would, could, is confident, will, and similar
expressions as they relate to Aegon. These statements are not
guarantees of future performance and involve risks, uncertainties
and assumptions that are difficult to predict. Aegon undertakes no
obligation to publicly update or revise any forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which merely reflect company
expectations at the time of writing. Actual results may differ
materially from expectations conveyed in forward-looking statements
due to changes caused by various risks and uncertainties. Such
risks and uncertainties include but are not limited to the
following:
- Changes in general economic conditions,
particularly in the United States, the Netherlands and the United
Kingdom;
- Changes in the performance of financial
markets, including emerging markets, such as with regard to:
- The frequency and severity of defaults
by issuers in Aegon’s fixed income investment portfolios;
- The effects of corporate bankruptcies
and/or accounting restatements on the financial markets and the
resulting decline in the value of equity and debt securities Aegon
holds; and
- The effects of declining
creditworthiness of certain public sector securities and the
resulting decline in the value of government exposure that Aegon
holds;
- Changes in the performance of Aegon’s
investment portfolio and decline in ratings of Aegon’s
counterparties;
- Consequences of an actual or potential
break-up of the European monetary union in whole or in part;
- Consequences of the anticipated exit of
the United Kingdom from the European Union and potential
consequences of other European Union countries leaving the European
Union;
- The frequency and severity of insured
loss events;
- Changes affecting longevity, mortality,
morbidity, persistence and other factors that may impact the
profitability of Aegon’s insurance products;
- Reinsurers to whom Aegon has ceded
significant underwriting risks may fail to meet their
obligations;
- Changes affecting interest rate levels
and continuing low or rapidly changing interest rate levels;
- Changes affecting currency exchange
rates, in particular the EUR/USD and EUR/GBP exchange rates;
- Changes in the availability of, and
costs associated with, liquidity sources such as bank and capital
markets funding, as well as conditions in the credit markets in
general such as changes in borrower and counterparty
creditworthiness;
- Increasing levels of competition in the
United States, the Netherlands, the United Kingdom and emerging
markets;
- Changes in laws and regulations,
particularly those affecting Aegon’s operations’ ability to hire
and retain key personnel, taxation of Aegon companies, the products
Aegon sells, and the attractiveness of certain products to its
consumers;
- Regulatory changes relating to the
pensions, investment, and insurance industries in the jurisdictions
in which Aegon operates;
- Standard setting initiatives of
supranational standard setting bodies such as the Financial
Stability Board and the International Association of Insurance
Supervisors or changes to such standards that may have an impact on
regional (such as EU), national or US federal or state level
financial regulation or the application thereof to Aegon, including
the designation of Aegon by the Financial Stability Board as a
Global Systemically Important Insurer (G-SII);
- Changes in customer behavior and public
opinion in general related to, among other things, the type of
products Aegon sells, including legal, regulatory or commercial
necessity to meet changing customer expectations;
- Acts of God, acts of terrorism, acts of
war and pandemics;
- Changes in the policies of central
banks and/or governments;
- Lowering of one or more of Aegon’s debt
ratings issued by recognized rating organizations and the adverse
impact such action may have on Aegon’s ability to raise capital and
on its liquidity and financial condition;
- Lowering of one or more of insurer
financial strength ratings of Aegon’s insurance subsidiaries and
the adverse impact such action may have on the premium writings,
policy retention, profitability and liquidity of its insurance
subsidiaries;
- The effect of the European Union’s
Solvency II requirements and other regulations in other
jurisdictions affecting the capital Aegon is required to
maintain;
- Litigation or regulatory action that
could require Aegon to pay significant damages or change the way
Aegon does business or both;
- As Aegon’s operations support complex
transactions and are highly dependent on the proper functioning of
information technology, operational risks such as system
disruptions or failures, security or data privacy breaches,
cyberattacks, human error, failure to safeguard personally
identifiable information, changes in operational practices or
inadequate controls including with respect to third parties with
which we do business may disrupt Aegon’s business, damage its
reputation and adversely affect its results of operations,
financial condition and cash flows;
- Customer responsiveness to both new
products and distribution channels;
- Competitive, legal, regulatory, or tax
changes that affect profitability, the distribution cost of or
demand for Aegon’s products;
- Changes in accounting regulations and
policies or a change by Aegon in applying such regulations and
policies, voluntarily or otherwise, which may affect Aegon’s
reported results, shareholders’ equity or regulatory capital
adequacy levels;
- Aegon’s projected results are highly
sensitive to complex mathematical models of financial markets,
mortality, longevity, and other dynamic systems subject to shocks
and unpredictable volatility. Should assumptions to these models
later prove incorrect, or should errors in those models escape the
controls in place to detect them, future performance will vary from
projected results;
- The impact of acquisitions and
divestitures, restructurings, product withdrawals and other unusual
items, including Aegon’s ability to integrate acquisitions and to
obtain the anticipated results and synergies from
acquisitions;
- Catastrophic events, either manmade or
by nature, could result in material losses and significantly
interrupt Aegon’s business; and
- Aegon’s failure to achieve anticipated
levels of earnings or operational efficiencies as well as other
cost saving and excess cash and leverage ratio management
initiatives.
This press release contains information that qualifies, or may
qualify, as inside information within the meaning of Article 7(1)
of the EU Market Abuse Regulation (596/2014).Further details of
potential risks and uncertainties affecting Aegon are described in
its filings with the Netherlands Authority for the Financial
Markets and the US Securities and Exchange Commission, including
the Annual Report. These forward-looking statements speak only as
of the date of this document. Except as required by any applicable
law or regulation, Aegon expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in Aegon’s expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based.
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version on businesswire.com: https://www.businesswire.com/news/home/20180619005650/en/
AegonMedia relationsDick Schiethart+31 (0) 70 344
8821gcc@aegon.comorInvestor relationsJan Willem Weidema+31 (0) 70
344 8028ir@aegon.com
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