AEGON profit jumps, plans June payback to Dutch state

Sharply higher third-quarter net income was reported Thursday by AEGON NV, corporate parent of AEGON USA in Cedar Rapids.

The Netherlands-based insurer, which employs about 7,500 in Cedar Rapids, posted net income of $906.5 million for the three months that ended Sept. 30, compared with $198.7 million in the third quarter of 2009.

New life insurance sales totaled $721.9 million, up 7 percent from $672.6 million in the third quarter of 2009, driven by higher sales in the United States, the United Kingdom and new markets.

AEGON Chief Executive Officer Alex Wynaendts said the insurer ended the third quarter with solid earnings and a strong capital position.

“During the third quarter AEGON achieved significantly improved year-over-year results, as measured by increases in underlying earnings, net income, new life sales and deposits,” Wynaendts said. “The strong earnings performance during the quarter was driven by growth across most businesses, strict cost control, higher equity markets and the strengthening of the U.S. dollar against the euro.

“AEGON's excess capital position improved to $4.52 billion, after repaying an additional $683.5 million to the Dutch State in August. We reaffirm our aim to complete full repayment by the end of June 2011, market conditions permitting.”

AEGON borrowed $4.4 billion from the Dutch government in 2008 to shore up its core capital.

AEGON continues to evaluate what it plans to do with its Transamerica Reinsurance business, including the option of selling the unit. The company said it is not in a position to provide further details.