Insurer Aegon booked a 58% decrease in net profit to €276m in the first half year, reports ANP news service on Thursday. The figure is lower than analysts’ expected, said ANP.
The main reason for the fall in net profit was lower results on investments and higher write-offs, the company said.
Aegon took a total loss of €324m of which €41m was connected to the so-called sub-prime mortgages. This is the first time Aegon has booked a loss on these products, reports ANP. And there is a ‘clear risk’ that further losses could follow in this area, the company is reported as saying.
Aegon’s share price fell 5.5% on the stock exchange on Thursday morning.
In a statement on Thursday Aegon CEO Alex Wynaendts said: ‘Aegon’s capital position and cash flows continue to be strong despite the ongoing turbulence in financial markets.
‘In this environment, Aegon’s businesses performed well with solid underlying earnings and growth in both sales and deposits….
‘Clearly, the weakening of the dollar and British pound had a considerable impact on our reported results.‘
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