AEGON posts sharp earnings improvement on higher sales

AEGON n.v., corporate parent of Transamerica in Cedar Rapids, posted higher first-quarter earnings on solid increases in sales.

The Dutch-based insurer recorded net income of $675.3 million for the quarter that ended March 31, up 59 percent from $423.8 million in the same quarter of 2011. Sales rose 25 percent to $2.3 billion in the first quarter of 2012 from $1.8 billion in the same period last year.

Earnings  before taxes in AEGON's Americas unit, which includes Transamerica, slipped 13 percent to $378.5 million in the first quarter from $435.5 million in the same quarter of 2011.

Following a year of considerable transformation, AEGON's businesses made a strong start in the first quarter of 2012, according to Alex Wynaendts, AEGON chief executive officer.

"Our successful efforts to reduce costs across our organization have created greater focus while also contributing to higher earnings," Wynaendts said. "Our emphasis on serving the growing demand for retirement planning solutions led to the substantial increase in pension deposits in the United States and our third-party asset management business succeeded in capturing a significant inflow of new business.

"In keeping with one  of our key strategic objectives, we delivered early on our target to generate a greater proportion of earnings from  fee-based versus spread-based business."

Wynaendts said AEGON was pleased with the low level of impairments during the quarter, the lowest in four years. He said maintaining the company's strong capital position will continues to be a priority.

"AEGON's first quarter results confirm the resilience of our franchise and that the actions being pursued by management are the right ones," Wynaendts said. "We look forward to resuming a dividend payment, which will be decided during our upcoming annual general meeting of shareholders."