Insurer Aegon did much better in 2021 than a year earlier, but still suffered from corona in the final quarter. As a result, more life insurance claims came in to the company. As the stock markets went up and the commissions that Aegon charges rose, operating profit fell only slightly in the last three months.
Especially in the United States, where many people still die from the consequences of Covid-19, Aegon lost more money in the life insurance branch. The number of expected corona deaths is even higher in the current period, so financial director Matt Rider is counting on headwinds for a little longer. At the same time, “this is our job”, says CEO Lard Friese. “We try to process payouts quickly to assist our customers in difficult times.”
The higher mortality due to corona also has positive sides for Aegon from a financial point of view. In the US, the insurer also has a branch that deals with long-term care, but it currently costs less. In the Netherlands, Aegon is strong in the pension market and there too the company spends slightly less on payouts.
For the whole of 2021, that operating result rose by 11 percent. Below the line, 1.7 billion euros remained. A year earlier, that was a net profit of 55 million euros. At the time, the company had to deal with one-off costs of more than 1.2 billion euros that depressed its profit.
According to CEO Lard Friese, Aegon has taken good steps in improving performance. This resulted in more money coming in than Aegon itself had expected and so the insurer is increasing the dividend. Aegon wants to save 400 million euros in costs by next year. More than 240 million euros of this has already been realised.
Insurer Aegon suffers from claims due to corona
Source link Insurer Aegon suffers from claims due to corona