Excluding the one-time loss, net income was E224 million
AEGON has reported a net loss of E161 million for Q2 2009, including a one-time E385 million loss from the sale of the company’s Taiwanese life insurance business. Excluding this one-time loss, net income was E224 million, a strong improvement compared with previous quarters.
The underlying earnings before tax amounted to E404 million, an increase from the first quarter of 2009. Fair value items contributed a negative E31 million to earnings in Q2 2009, an improvement compared with recent quarters.
The net income during the second quarter of 2009 was negatively impacted by impairment charges of E393 million, associated in part with investments in structured residential mortgage assets in the Americas.
The net income in the second quarter of 2009 also included a tax gain of E228 million related to cross border inter-company reinsurance transactions between Ireland and the US. This gain was a partial reversal of previous tax charges from these internal transactions during 2008.
In Q2 2009, the underlying earnings before tax for the company totalled E404 million, a substantial improvement compared with recent quarters. The underlying earnings were impacted by a few items totalling E36 million.