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Aegon Posts Q1 Profit; Says Unlikely To Reach FY20 Return On Equity Target

Dutch Life Insurer Aegon NV (AGN.L,AEG) reported Tuesday that its first-quarter net income was 1.27 billion euros, reflecting fair value gains of 1.372 billion euros, driven by a reduction in the valuation of the liabilities in the Netherlands, reflecting wider credit spreads.

Income before tax was 1.529 billion euros.

Underlying earnings before tax were 366 million euros reflecting adverse mortality and impacts from lower interest rates in the Americas, and limited COVID-19 related non-life claims in the Netherlands.

Gross deposits were 52 billion euros in the first quarter of 2020, mainly from Asset Management and the Americas.

Matt Rider, CFO, said, "...underlying earnings in Europe, Asia and Asset Management held up well. However, earnings in the United States were negatively affected by the drop in interest rates as a result of the COVID-19 crisis, and unfavorable mortality experience, which was largely unrelated to COVID-19."

Looking ahead, the company noted that the uncertainty around how the pandemic will play out and the continued economic impact it will have, make it difficult to provide a full assessment of COVID-19 related impacts on its medium-term targets.

The company said it is very unlikely that it will reach annual 10 percent return on equity target in 2020.

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