Lard laugh

15 August 2019 By Christopher Thompson Follow @CGAThompson

Despite hiking its dividend, Aegon’s shares dived after a sharp drop in solvency. That revives bad memories of the insurer’s volatile capital a few years back. Incoming CEO Lard Friese’s first job is to show investors he’s better at managing the group as low rates bite once more.

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Aegon on Aug. 15 reported a 5% year-on-year decrease in underlying pre-tax profit to 1 billion euros.

The Dutch insurer’s Solvency II ratio, a measure of its capital strength, slipped to 197% at the end of June, from 211% at the end of 2018.

Aegon announced a 7% increase in the interim dividend to 0.15 cents per share.

Aegon on Aug. 12 said that CEO Alex Wynaendts would leave the company next year and would be succeeded by Lard Friese, the CEO of Dutch rival NN Group.

Separately, NN reported on Aug. 15 an 11.3% year-on-year rise in operating profit during the first half to 914 million euros.

NN's capital position under Europe's Solvency II regime fell to 210% from 213% t in the same period a year ago, reflecting low interest rates.

The Dutch insurer announced a 15% rise in the interim dividend to 76 cents per share.

Aegon shares were down by 8.2% to 3.43 euros by 0830 GMT on Aug. 15. Those in NN were up by 2% at 31.03 euros.