THE HAGUE (dpa-AFX) - Aegon N.V. (AEG, AGN.L) brings forward the measures associated with the deal announced on July 13, 2009 and reduces future costs for its customers with unit-linked insurance policies. Aegon, with these measures, commits to the 'best of class' principles of the Dutch Ministry of Finance. These principles result from an industry-wide review by the Ministry of the various agreements entered between individual insurance companies and customer interest groups regarding unit-linked insurance policies. The Ministry has made a strong appeal to all industry participants to apply its principles.
To comply with the Ministry's principles, AEGON would now settle compensation immediately by making direct additions to policy values before year-end 2012. As a consequence of this acceleration of prior announced measures, AEGON would take a one-off charge of 265 million euros before tax that would be recognized in the second quarter of 2012.
Further, AEGON would reduce future policy costs beginning in 2013 onward for the large majority of its unit-linked portfolio, which would impact underlying pre-tax earnings over the remaining duration of the policies by around 125 million euros on aggregate. The quarterly impact in 2013 is estimated to be 7 million euros before tax, to be mitigated by the cost savings program in the Netherlands.
Copyright RTT News/dpa-AFX
© 2012 AFX News
