02 August 2017Reading time: 2 minutes

Aegon is an international company based in the Netherlands and active in the fields of life insurance, pensions & asset management. The company has over 29,000 employees (as of Marh,31 2017) and is serving over 26 million customers globally.


The business model of Aegon is simple and based on 4 pillars:

-Customers: The firm aims to develop products that are required by its customers to allow them financial
stability. Products are priced by assessing potential risks and changes in the demographic structures.


-Sales & distribution: Aegon sell its products directly or via intermediary, which will receive a fee. Aegon underwrite its products to manage risk and be sure to meet pay-out obligations.


 -Pay-in phase: Premiums and deposits that the customers pay on Aegon’s product are invested, so that the
expected benefits can be paid when the time comes.


 -Pay-out phase:  In a life insurance  for instance the pay-out start when a claim is made. The beneficiaries receive either the whole sum of money or a series of regular payment made over a period of time.

On 11th of May, Aegon published its financial results of the first quarter of 2017 showing good results. Sales
increased by 11% and earnings by 6% compared to 1Q 2016. The higher earnings stemmed from expenses reductions Demographic characteristic such as mortality are key for the pay-out ratio in the life insurance business and therefore Aegon’s rentability. These factors were in line with expectation in the US. Moreover, Aegon published on 30 June 2017, its Solvency and financial Condition report for the year 2016. As at December
31, 2016 the solvency II ratio, which is an indicator to measure the ability of a company to face liabilities in case of an insolvency, was 157%.


Bloomberg analysts do assess a 12-month target price of EUR 4.98 (date: Juli 27th) . Seven analysts recommend BUY, 15 recommend HOLD and 4 recommend SELL. However, since the share’s performance depends on corporate-, industry- and economic-related conditions, investors should always consider the risk of their investments. Developments could turn out differently than expected by investors.

Vontobel products are tradable at DEGIRO.

Important legal information:

This information does not constitute a financial analysis, but product advertisement. Thus it does not meet the legal requirements to ensure the impartiality of financial analysis and is not subject to trade prohibition before the publication of a financial analysis.

Fordetailed information, particularly regarding the structure and the risks associated with an investment in the derivative financial instruments, prospective investors should read the Base Prospectus, which is available together with the Final Terms and any supplement to the Base Prospectus in electronic form on the issuer’s website: Additionally, the Base Prospectus, anysupplements to the Base Prospectus and the Final Terms are available inprinted form, free of charge, at the registered office of the issuer: Vontobel Europe AG, Bockenheimer Landstrasse 24, 60323
Frankfurt am Main, Germany.

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Companies of the Vontobel group may directly or indirectly pay commissions in varying amounts to third parties (e.g. brokers) in connection with the public offer and the distribution of the derivative financial instruments. Further information is available upon request from your distribution partner.


18/02/2020 17:52:47