Messy Results Continue To Accompany Chaotic Aegon Transformation

Aegon has reported typical transformational results and it remains challenging to see the outcome of all these efforts. A number of actions are ongoing such as the recent divestment of Aegon’s Dutch operations to ASR Nederland, excluding the Dutch asset management business. Further, Aegon has achieved another EUR 50 million in expense savings. It seems to be a matter of continual transactions in order to hedge or take volatility out of back books combined with peripheral divestments. However, because Aegon has retained its Dutch asset management business speaks volumes about how messy this process is. This is still a very untidy business. The net result on Nov. 10 is a EUR 206 million loss for the third quarter, which takes the company to a loss so far and well below our full-year forecast. We maintain our EUR 4.95 fair value estimate and no moat rating.