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Aegon’s Q1 22 results were good on an operating basis however profitability was hit by non-operating items, namely fair value items, as a result of tumbling equity markets. The strong capital position offers the firm a window to distribute extra capital to shareholders.
Companies: Aegon NV
A very strong set of results, showing the firm’s agility in these low rate environments. The operating plan is being implemented smoothly, while US mortality claims are decreasing. The dividend increased and there is much optimism ahead while rates are unlikely to ramp up tomorrow.
Aegon’s results show that the insurer is progressing well with its strategic initiatives. Not only is the insurer ahead of its plan, but it also benefited from better-than-expected commercial results. The firm looks well oriented to improve profitability and yield.
Aegon announced a net loss of €147m in H2 20 and the full-year net income stood at €55m. The sharp decline was affected by adverse fair value item movements (€1,150m). In terms of operating performance, the insurer posted positive figures. The H2 20 underlying earnings before tax reached €1,029m, up 7.1% yoy. Except for the UK, all business lines recorded a positive trend in their operating earnings. The Solvency II ratio was 196%. The proposed final dividend is €0.06/share.
The rapid pandemic outbreak in the US led to deep changes in assumptions (€-834m), fair value losses (€-760m) and the suspension of a cash remittance. The American business, at the heart of Aegon’s profitability, is now a real source of concern. The other business units showed resilience. Management announced the withdrawal of its financial targets and a declined interim dividend to €0.06/share despite a solid Solvency II ratio (195%). Aegon will exit unprofitable markets and reallocate capital
Aegon released Q1 20 figures, marked by a strong net income (€1,270m) coming from fair value gains. The insurer succeeded also in protecting its Solvency II ratio (208%). Underlying earnings before tax was €366m, reflecting adverse mortality and impacts from lower interest rates in the Americas. The Dutch and UK operations showed resilience. Aegon took measures to preserve its profitability, including Variable Annuity repricing and coverage restriction. We expect more affected figures in Q2 due
Aegon released FY 19 pre-tax underlying earnings of €1,973m, down 4.8% yoy, but net profit improved to €1,528m. The Americas continued to be the main generator of earnings (57% of the group one) and gross cash (60% of the remitted cash), despite the difficult economic context. Contrary to last year, net income benefited from lower fair value losses (€226m) and the model & assumption changes and restricting costs (€281m). The proposed final dividend is €0.16/share.
Aegon’s H1 19 pre-tax underlying earnings of €1,010m were down 5% yoy, but net profit jumped to €618m. The underlying result was affected by the impact of lower fee income on Retirement Plans and Variable Annuities and higher investments in the Americas. The European and Asian businesses posted slightly higher earnings. The proposed interim dividend is €0.15/share. Aegon respected some fixed targets, but the current volatility in the markets could be harmful to its FY 19 profits.
The partnership between Aegon and Banco Santander is not new. It began in 2013. Spain is not particularly a cornerstone in the profitability of the Dutch insurer, but the reinforcement of the relationship with the leader in the banking sector would allow it to progress in the implementation of its recovery plan.
Aegon released an FY 18 pre-tax underlying earnings of €2,074m, down 3.3% yoy, but net profit dropped to €744m. Earnings were hit by fair value losses (€257m) and the charges of the legal settlement in the US, the book loss on divestments and model and assumption changes (€581m). The proposed final dividend is €0.15/share. Aegon set new targets for 2019-21, with mainly a dividend pay-out to shareholders in the range of 45-55% of capital generation.
Aegon presented its US strategy, but with no major announcements. All 2018 financial targets were confirmed, including the dividend. The US business is crucial for the Dutch company, as it is the main contributor to underlying earnings and cash remittance to the holding. The entire group is undergoing a deep transformation, making it a technology-driven company. Such investments need time to produce results. We keep our figures and positive opinion on the insurer.
Aegon released an FY 17 pre-tax underlying earnings of €2,103m, up 9.9% yoy. Net profit jumped to €2,361bn, mainly thanks to the significant lower impact of fair value items and the positive impact of the US tax reform which led to a one-time benefit of €554m in income taxes. In the next years, an additional €120m to net underlying earnings is expected to be seen due to this reform. The proposed final dividend is €0.14/share, bringing the total dividend to €0.27/share.
Aegon’s Q3 17 sales reached €4,451m (+53.2% yoy), bringing ytd sales to €12,331m, up 33.6% relative to 2016. New Life sales were down by 31.3% to €329m, confirming the observed trend since the beginning of the year (-23.7%, €1,204m). Gross deposits increased 64.9% to €40,691m in the Q3 and 40.9% ytd to €109,495m. Q3 17 underlying earnings before tax improved by 20.6% to €556m. During the 9M 17, the underlying earnings before tax reached €1,578m, up 16.1% yoy. Realised gains on investments tota
Q2 capital restructuring plans have eased concerns over exposure to the Solvency II volatility. However, the valuation benefit has been offset by further downgrades in earnings outlook and we retain our Underperform rating.
Aegon’s Q1 17 sales reached €3,942m (+10.7% yoy). New Life sales were down by 7.5% to €246m. The market-consistent value of new business amounted to €172m, +29.3% yoy. Gross deposits increased 12.9% to €33,969m but an outflow was recorded of €6,003m. Q1 17 underlying earnings before tax improved by 5.6% to €488m. Realised gains on investments totalled only €76m. In Q1 17, operating expenses increased by 2.3% to €983m. The loss from fair value items amounted to €53m, leading to a Q1 17 net income
Research Tree provides access to ongoing research coverage, media content and regulatory news on Aegon NV ADR. We currently have 44 research reports from 4 professional analysts.
Companies: Emmerson Plc
Aviva’s Q1 22 trading update was slightly above our expectations although this remains very much tied to the top-line and profitability could be impacted as of H1. Do the operations really mean that much for the share price with high dividends as a back-up? The latter are expected to continue as the firm has stated that it will release capital above its 180% solvency ratio.
Companies: Aviva plc
Duke has raised £20m in new equity capital, subject to shareholder approval, to fund their continued expansion. The new capital will also support the company's target of increasing their debt facility by a further £25m, and therefore providing a total of £45m of new capital to invest. The increasing scale and diversification of the portfolio is forecast to eventually increase free cash flow per share once full deployment has taken place and will allow Duke to seek a reduction in its debt facilit
Companies: Duke Royalty Limited
Weekly round-up of AIM-listed healthcare news. Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics
Companies: ANIC RUA CREO GENI HEIQ IHC IXI IUG OPTI SBTX VAL VLG
*A corporate client of Hybridan LLP Dish of the day Joiners: EnSilica (ENSI.L), has join AIM. EnSilica provides an end-to-end service for the design and supply of mixed signal ASICs, outsourcing certain elements such as the wafer fabrication of the manufacturing and packaging to third parties - otherwise known as a Fabless Semiconductor Model. ASICs are Integrated Circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help
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ADF has released its first annual results as a public company and has made quite the entrance with a record set of numbers. FY21A revenues came in at £27.8m, 245% above prior year revenues given FY20A was impacted by lockdowns, and 75% above FY19A revenues. They supported 39 productions, including the latest series of The Crown, Peaky Blinders, and Doctor Strange. We have upgraded our forecasts for FY22E and FY23E on a top-line and bottom-line basis. We believe the company is undervalued on an F
Companies: Facilities by ADF PLC
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Companies: BLV POLB RBN
Belvoir has acquired TIME Group Ltd, an appointed representative of Mortgage Advice Bureau (MAB) for an initial £3.7m cash cost. TIME provides mortgage and related financial services and is a good step forward in Belvoir’s growth strategy, within which the potential in Financial Services plays a key part. The initial cost represents 5.8x FY 2021 PBT and we have upgraded our FY 2022E EPS by +3% and 2023E by +7%. In FY 2021, Belvoir’s Financial Services division grew revenue by +44% organically an
Companies: Belvoir Group PLC
Following its 30 April year end, Purplebricks preclose reveals instructions and revenue in 2H have resulted in an £8.8m EBITDA loss for the year.
Companies: Purplebricks Group Plc
AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price of A$0.060 per share: Flow rate at the top end of expectations at important appraisal well - The Anshof-3 well flowed ~75 bbl/d of light oil (and no water) on test from the Eocene reservoir. This has positive implications for production, reserves and the upside case. The flow rate was at the upper end of expectations (40-80 bbl/d). The well has not been acidized yet which could boost production rate b
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Companies: Belvoir Group PLC (BLV:LON)Chaarat Gold Holdings Ltd. (CGH:LON)
Delivering outperformance when the macro becomes tough In our initiation HICL INFRASTRUCTURE: A Public Partner in Private Infrastructures we argued that due to the defensiveness of HICL''s portfolio, the assets'' strong inflation hedge and the ongoing recovery of mobility-related assets and Affinity Water, HICL should fare well in a risk-off market amid rising inflation. HICL''s share price is roughly flat YTD but this compares to -3% for the FTSE all share. The 4% beat for FY22 vs. our NAV p.s
Companies: HICL Infrastructure PLC
Companies: Honeycomb Investment Trust Plc
LSL’s performance in 2022 YTD shows the benefits of its Financial Services growth strategy and significant progress in its Surveying Division. The impact of housing market cycles will have a reducing impact. As previously reported, the split of H1:H2 profit in 2022 will have a more typical profile (i.e. skewed to H2), after a record H1 2021.
Companies: LSL Property Services plc
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