Aegon’s share value drops at expected-Q3 losses

7th November 2008, Comments 0 comments

Share value of the Dutch insurer dropped two percent Thursday after the company posted a net loss of EUR 329 million for its third quarter.

7 November 2008

AMSTERDAM - The value of Dutch insurer giant Aegon's shares fell slightly Thursday on the Amsterdam stock exchange following the release of the company’s third quarter losses.

Aegon said it lost EUR 329 million in the third quarter of 2008, below the EUR 350 million losses which the company had announced to shareholders in late October.

By 11 am local time (1000 GMT), Aegon share value stood at EUR 3.92, a drop of 2 percent.

Aegon said the loss came mainly from the ongoing drop in share value on the stock exchange and write-offs on investments.

Write-offs on the US banks Lehman Brothers and Washington Mutual, both of which collapsed earlier this fall, amounted to EUR 336 million.

Aegon board chairman Alex Wynaendts said the insurer's underlying activities however remained resilient despite the ongoing turmoil on international financial markets.

"Aegon is well-positioned to resist the current financial crisis," Wynaendts said.

The company also announced it would continue to take extra measures to increase its solvency.  Sale of investment portfolios in the third quarter has already raised EUR 729 million in extra capital.

Aegon said it would continue to increase its capital by another EUR 600 to 800 million for the final quarter of 2008.

On 28 October, Aegon became the second Dutch financial company to receive state support to cope with the credit crisis. The company received EUR 3 billion. In exchange, the Dutch state received Aegon shares, 8.5 percent interest on its investment and the right to appoint two people to Aegon's board.

Aegon's financial director Jos Streppel on Thursday said the Dutch government is due to announce its board appointments this week.

[dpa / Expatica]

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