Compelo Insurance is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More

Investments bail out Aegon profits

Dutch insurance company Aegon has reported a 61% increase in net profits for 2004. However, the impressive improvement was built on strong income from investments gained from a positive stock market trend not growth in its core insurance business.

Including one-off income from capital gains on shares and real estate of E600 million, Aegon achieved total profits of E1.66 billion, up from E1.03 billion in 2003, a rise of 61%. Without gains and losses on stock and real estate sales taken into account, the company achieved profits of E1.78 billion, a 22% increase on the previous year.

However, although annual sales increased slightly by 4% to E28.51 billion, income from insurance premiums remained level and income from banking operations decreased by 20%.

The company’s executive board will propose a 2004 dividend of E0.42 per common share, representing a 5% increase compared to the prior year. Taking into consideration the interim dividend paid in September 2004, the proposed final dividend amounts to E0.21 per common share.

Despite recording a healthy overall increase in profits, the company’s share price fell slightly after reporting as it failed to issue an outlook for the coming year. Donald Shepard, chief executive, in a release from the FT, did state, however, that the company does not expect any major changes in 2005 except a possible moderate increase in interest rates, which will aid the business.