04 September 2018Reading time: 2 minutes

The net profit of Aegon plummeted from 907 million euro to 491 million euro on an annual basis in the first half-year. This was mainly caused by the loss on the sale of the Irish activities and investment losses. Due to the increased value of the dollar, the results in the United States decreased with 10 percent. The sale of life insurances as well as saving- and investment products decreased in the United States. The underlying result of Aegon improved with 2 percent to 1,06 billion euro, whereas most analysts counted on a decline. If negative exchange rate effects are ignored, the increase would be 10 percent. Furthermore the solvability of Aegon was 215 percent and the insurance company will pay-out an interim dividend of 14 euro cents per share.

Aegon also stated to news agency Bloomberg that they still have interests in an acquisition of Vivat, which is the former Insurance division of SNS Reaal. The insurance company believes that the Dutch peer, which is at the moment owned by the Chines Anbang, has enough potential. Meanwhile Aegon continues to search for other possible take-over candidates. Late August the insurance company received the approval from the Autoriteit Consument & Markt (ACM) for the acquisition of Robidus, a service provider for social security. Aegon will gain a majority stake of 95 percent and the rest will remain in the hands of the management team of Robidus. On the other hand there is the sale of two company parts within Slovakia and Czech Republic to NN Group for 155 million euro. It remains to be seen if Aegon will announce more take-overs or disinvestments in the coming period.

Late August Aegon agreed with a settlement for three of their American daughter companies, who would have deceived investors. The settlement amount has been set at 97 million dollar. In the fourth quarter of 2017, Aegon already had made a provision for this case of 100 million dollar. Analysts are pleased that the settlement now offers more clarity.

The stock price of the share has strongly plummeted in August and is now 2,1 percent lower compared to the beginning of this year at 5,20 euro (30-08-2018). The price-earnings ratio is 4,6 with a dividend yield of 5,4 percent. The future price of the stock is subject to several political, industrial and sector specific as well as economic factors. Investors should consider these risks when making their investment decisions. Developments can be different at any time than investors anticipated on, which could result in capital losses.

Vontobel products on the Aegon are tradable at DEGIRO.

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02/03/2021 09:28:41