14 August 2014 Insurance

Aegon net profits hike by 43%

Dutch insurer Aegon posted a solid set of results as net profits soared by 43 percent in the second quarter of 2014.

Its net profits hit €343 million in the second quarter of 2014, mainly as a result of higher realised gains, compared with €240 million in the second quarter of 2013.

Aegon's underlying earnings before tax in the second quarter of 2014 increased 7 percent to €514 million compared to the second quarter of 2013. It said that the main drivers of the increase were strong net deposits in previous periods and stronger equity markets in the Americas (€24 million), higher margins and investment income in the Netherlands (€31 million) and improved persistency in the UK (€12 million).

This was partially offset unfavourable mortality rates in the Americas (€15 million) and the impact of unfavourable currency exchange rates (€15 million).

Its gross deposits grew by 3 percent to €13 billion, driven by pensions and variable annuities in US.

Alex Wynaendts, chief executive officer, said: "We are pleased with the strong results that Aegon has delivered, as we build on the positive momentum achieved in previous quarters.

"We are continuing to offer innovative new products to our customers and expand our distribution - indeed we will soon be extending our successful partnership in Spain with Banco Santander to Portugal. Ever more customers are choosing Aegon, and placing their trust in our products and services to secure their financial future.

“As a result, our revenue-generating investments now exceed €500 billion for the first time in the company's history.

"Our strong financial base is underlined by our healthy cash flows and capital position, and we are therefore pleased to announce an interim dividend of 11 eurocents per share."

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