Aegon Ltd. · EURONEXT:AGN
Aegon — Q2 2010 Earnings Presentation
16 slides from Aegon's earnings presentation, Aug 12, 2010
Slide 1: Second quarter 2010 results
Second quarter Alex Wynaendts CEO 2010 results Media presentation August 12, 2010
Slide 2: Key messages
Key messages Increase in underlying earnings and net income Strong sales and deposits, mainly driven by pensions Impairments at lowest level in two years Continued strong capital position 2
Slide 3: Execution of strategy demonstrated by strong results
Execution of strategy demonstrated by strong results Underlying earnings before tax New life sales (EUR million) (EUR million) 590 522 557 478 488 538 415 390 484 492 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Revenue-generating investments Gross deposits* (EUR billion) (EUR billion
Slide 4: Continued focus on execution of strategy in Q2
Continued focus on execution of strategy in Q2 Reallocate capital o Run-off institutional spread-based business in the US on track o Increased fee business, reduced spread business in the US o Capital preservations of EUR 250 million in Q2 2010 o Exploring strategic options for Transamerica Re, incl
Slide 5: Strong sales and deposits
Strong sales and deposits New life sales increased 22% YoY driven by almost all units, especially by increased sales in the US and the UK Gross deposits* up on strong US pensions and asset management Fixed annuities continued to be managed lower VNB declined due to earlier repricing of immed
Slide 6: Underlying earnings increase 26%
Underlying earnings increase 26% Americas earnings rose 47% due to higher fee and investment income as well as lower expenses; Q2 09 included several exceptional charges Strong earnings in the Netherlands; Q2 09 included a provision release Results in the UK rose due to increased annuity book
Slide 7: Operating expenses declined by 2% at constant currencies
Operating expenses declined by 2% at constant currencies Total operating expenses increased 3% due to dollar and pound sterling strengthening against the euro; however at constant currencies declined by 2% Operating expenses: – Americas decreased on a comparable basis as result of cost savings –
Slide 8: Net income driven by strong underlying earnings
Net income driven by strong underlying earnings Investment gains as a result of bond sales Impairments at lowest level in two years, approaching long-term assumptions Other charges impacted by one-time provision for settlement in the US Run-off businesses better than expected due to better p
Slide 9: Impairments at lowest level in two years
Impairments at lowest level in two years US impairments continued their downward trend, approaching AEGON’s long-term assumption of 30-35 bps Q2 2010 impairments are primarily related to US housing related securities Impairments expected to remain at somewhat elevated levels Impairments (EUR m
Slide 10: Excess capital lower due to higher S&P capital requirements
Excess capital lower due to higher S&P capital requirements Excess capital of EUR 3.0 billion above S&P’s AA capital adequacy requirements – EUR 1.9 billion in operating units (Q1: EUR 2.4 billion) – EUR 1.1 billion at the holding company (Q1: EUR 1.3 billion) Excess capital development Q2 2010 (E
Slide 11: Continued strong capital position
Continued strong capital position IGD capital surplus of EUR 7 billion; solvency ratio of ~200% Core capital* at 74% of total capital base – above threshold of 70%; managing to 75% over time Shareholders’ equity** (EUR billion) Total capital base 100% 18 90% Net senior debt 16 80% 14 70% Perpetu
Slide 12: Shareholders' equity continues to improve
Shareholders’ equity continues to improve Shareholders' equity rose 18% due to strengthening of the dollar, improvement in revaluation reserves and net income Shareholders’ equity per common share of EUR 8.83, up from EUR 7.28 in the previous quarter Positive revaluation reserves of EUR 0.6 bi
Slide 13: Limited exposure to peripheral European sovereigns reduced
Limited exposure to peripheral European sovereigns reduced EUR million * March 31, 2010 June 30, 2010 Portugal 59 47 Greece 108 70 Ireland 125 89 Italy 109 106 Spain 1,793 1,231 * At fair value 13
Slide 14: Conclusion
Conclusion Increase in underlying earnings and net income Strong sales and deposits, mainly driven by pensions Impairments at lowest level in two years Continued strong capital position 14
Slide 15: LIFEINSURANCE | PENSIONS [INVESTMENTS WEGON
LIFEINSURANCE | PENSIONS [INVESTMENTS WEGON
Slide 16: Disclaimer
Disclaimer Cautionary note regarding non-GAAP measures This press release includes certain non-GAAP financial measures: underlying earnings before tax and value of new business. The reconciliation of underlying earnings before tax to the most comparable IFRS measure is provided in Note 3 "Segment in