Aegon back in black

Aegon NV, the bailed-out Dutch insurer that owns Transamerica in the United States, yesterday reported a profit for the third quarter, its first since the financial crisis became most acute last fall.

Net profit was 145 million euros ($217 million), compared with a loss of 329 million euros in the same period a year ago.

The company reported 337 million euros in investment losses and impairments in the quarter, compared with 387 million euros a year ago. Aegon said the main reason was lower losses on assets related to the US housing market.

In addition, several of its smaller businesses - notably pensions and asset management - swung from losses to profits. Aegon's life insurance business, its largest, reported 289 million euros in operating earnings, compared with 214 million euros a year ago.

It said US operating earnings swung to a profit of 213 million euros from a loss of 65 million euros.

While that was mostly due to lower losses on investments, CEO Alex Wynaendts said the company's retail life insurance sales rose 11 percent in the US, while pension sales were also strong.

Aegon issued 1 billion euros worth of shares in August, which it intends to use to pay back a third of the 3 billion euros in aid it received from the Dutch state at the height of the crisis.

Source:China Daily