(Reuters) – Aegon on Thursday raised its guidance for full-year capital generation and free cash flow for 2021-23, buoyed by better-than-expected second-quarter operating profit.
The Dutch insurer has thus reported an operating profit of 538 million euros, above analysts’ estimates which were counting on 486 million euros, according to a consensus compiled by the company.
The title Aegon took 8.4% on the Amsterdam stock exchange at 8:10 GMT.
“The first half of 2022 was one of the most challenging times for investors, with equity markets having their worst start to the year in more than five decades,” said Lard Friese, chief executive of Aegon, in a statement. communicated.
Aegon’s operating profit “reflects the receding impact of COVID-19 and the progress we are making on our operational improvement plan which has helped offset the impact of lower equity markets “, added Lard Friese.
However, the group recorded a net loss of 348 million euros due to an exceptional charge linked to the increase in reinsurance rates in the United States, while the average forecast was for a loss of 129 million euros. .
Aegon expects capital generation of around €1.4 billion in 2022, compared to around €1.2 billion previously. He also said he expects to achieve a cumulative free cash flow over the period 2021-2023 of at least 2.2 billion euros, well above his previous target of 1.4 to 1, 6 billion.
The group, which earlier this year completed the sale of its Hungarian branch and plans to sell the 50% stake it holds in a partnership with Liberbank, is now considering a deal to divest its US portfolio of annuity products. variables.
(Report Juliette Portala and Elitsa Gadeva, French version Augustin Turpin, edited by Kate Entringer)