THE HAGUE (dpa-AFX) - Aegon NV (AGN.L, AEG), a Dutch insurance, pensions and asset management company, Wednesday cut its underlying earnings before tax forecast for 2010 to 2015, citing historically low interest rate environment.
Ahead of its Analyst & Investor Conference in London, the life insurer said it 'is currently on a trajectory to deliver an increase in underlying earnings before tax of between 4-7% over the period 2010-2015 and 7-10% from 2012 to 2015.'
The company had said on June 5 that it expects to grow underlying earnings before tax by 7 to 10 percent on average per annum between 2010 and 2015.
With regard to its return on equity target, Aegon is currently on a path to achieve a return on equity of between 8 to 10 percent, assuming current reinvestment yields until 2015, and considering the recent preferred share transaction and further capital deleveraging. The previous forecast was for return on equity of 10 to 12 percent by 2015.
Further, Aegon said today that it is on track to achieve its target to double the proportion of earnings generated from fee-based business to 30 to 35 percent, and to achieve operational free cash flows of between 1.3 billion euros and 1.6 billion euros by 2015.
Aegon CEO Alex Wynaendts and CFO Darryl Button will speak at the conference which begins today. Detail of actions in progress to deliver transformation will be discussed, along with an outline of the company's disciplined capital management policy.
Button will also announce Aegon's intention to neutralize the dilutive effect of stock dividends in future by repurchasing Aegon shares on the open market.
The stock is falling 1.22 percent in early trading in Amsterdam.
Copyright RTT News/dpa-AFX
© 2013 AFX News
