Aegon: shares climb after reassuring update

(CercleFinance.com) - Dutch insurer Aegon said on Tuesday that underlying earnings "held up well" in Europe and Asia in the first quarter, but noted that earnings were negatively affected by falling interest rates in the US.


In an update to investors, the company said its quarterly performance was also affected by an unfavourable mortality experience in the US, which was largely unrelated to Covid-19.

This resulted in underlying earnings before tax of 366 million euros for the first three months of the year, Aegon said, while net income of 1.3 billion euros benefited from hedge programs and the favourable impact of credit spread movements, it said.

Its Solvency II ratio increased from 201% to 208% over the first quarter, above the target range of 150%-200%, it added.

Analysts noted that the group's solvency, as well as its liquidity, were "ahead of consensus," which prompted the shares to rise over 2% on Euronext Amsterdam.

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