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Aegon Q4 net income declines

Dutch insurer Aegon has reported a net income of EUR318m for the fourth quarter of 2010, compared to EUR393m for the same quarter of 2009.

New life sales for the fourth quarter of 2010 amounted to EUR558m, compared to the same level achieved during the last year quarter.

Gross deposits, excluding run-off businesses, increased 16% to EUR7.81bn, driven by US pensions, variable annuities and Aegon Asset Management, compared to $6.72bn for the same quarter last year.

For the year 2010, net income was EUR1.76bn, compared to EUR204m for the year 2009.

The insurer said that the current 10% equity issue will fund part of EUR2.25bn required for repurchase, allowing Aegon to maintain its capital position and to achieve the targeted 75% core capital ratio by year-end 2012.

Aegon CEO Alex Wynaendts said that Aegon has delivered a strong set of results for the full year 2010. During the year, the company has concentrated its efforts on executing a consistent strategy aimed at sharpening the focus on core business, improving risk-return profile and executing significant cost reduction programs.

"As a result of our efforts over the past years, Aegon is a different company today. Today’s equity offering, together with internal resources, including proceeds from divestments, will position us to repurchase all remaining core capital securities provided by the Dutch State by the end of June 2011.

"The equity offering supports our strategy to maintain a strong capital position, including achieving our target ratio of 75% core capital by the end of 2012," Wynaendts said.