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.
Companies: Aegon NV
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
Aegon’s Q4 16 sales reached €2,727m (-5.5% yoy), but the ytd turnover is still showing an increase of 14.8% to €11,956m. FY 16 new life sales were down 27.2% to €2,054m. In Q4 16, the market consistent value of new business declined by 20.8% to €118m, confirming the negative trend for the full year (-29.6% to €420m). FY 16 gross deposits increased 21.4% to €100,325m. Q4 16 underlying earnings before tax improved by 27.4% to €554m yoy, but only 2.4% to €1,913m for the whole year. Only European an
We have repositioned the portfolio, price targets and ratings to allow for accentuated regulatory risk from on-going capital market volatility.
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What’s new: Updates in April and early May reveal:
Group consolidated Funds Under Management “FuM” of US$11.3bn at the end of April 2021 is up 4.0% year to date (Dec20: US$10.9bn).
Strong investment performance across CLIG’s investment strategies, was offset by clients rebalancing, resulting in 3Q net outflow of US$278m.
CLIG continues to maintain an active pipeline across all its major products.
Income net of third-party commissions currently accrues at circa 74 bps (i.e. c. 73 bps
Companies: City of London Investment Group PLC
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
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Forecast beating Final Results
Companies: Palace Capital plc
Avation is a lessor of 45 aircraft to a diversified airline client base of 19 commercial airlines across 15 countries. This morning, the group has provided a solid trading update to 31 March 2021, which points to a continued focus on managing the collection of customer revenue, with rent collections and overall cashflow having improved since the end of H1 2021. The remarketing of the eight returned ATR aircraft has also continued, while net debt reduced by $51.6m in Q3 FY 2021E to $988.1m, with
Companies: Avation PLC
HgCapital Trust (HGT) posted a strong NAV TR of 8.4% in Q121, driven primarily by double-digit earnings growth across the portfolio (LTM EBITDA for top 20 holdings up 30% y-o-y). After record-high transaction volumes in FY20 (investments at £403m and realisations at £364m), HGT has maintained a high transaction activity to date in 2021 (£147m and £112m, respectively). Its coverage ratio was a healthy 69% at 12 May 2021, supported by tap equity issues, which totalled c £50m to 8 June 2021 (versus
Companies: Hgcapital Trust
Trident reports that Moxico Resources Plc has recently completed a US$73m equity financing. The proceeds will be used to fast-track development of the Mimbula copper mine in Zambia over which Trident holds a royalty. Mimbula is already producing copper and is in the ramp up stage, but the cash injection will allow Moxico to produce cathode copper onsite via the construction of a new SX-EW plant and Moxico anticipates a significant increase in copper production. As a royalty holder, Trident will
Companies: Trident Royalties Plc
Hipgnosis Songs Fund (SONG LN) has today released a trading update and published an unaudited NAV of $1.6829 (122.5p) as at 31 March 2021 vs $1.5114 (116.7p) as at 31 March 2020. This is an increase of 11.3% (in US$ terms – to which the company changed its reporting currency back in October 2020), and a TR of 15.7%, giving a TR of 40.7% since inception in July 2018. The growth in the “Operative NAV” is 9.4% on like-for-like uplift in fair value catalogues which has been driven various factors: t
Companies: Hipgnosis Songs Fund Limited Shs GBP
Liontrust has delivered exceptional growth and there is much to be optimistic about, yet it continues to trade on an unexceptional 14x Mar-22e PER. We are expecting no surprises at Finals later this month after a post-period update in late May and supportive markets since. There is opportunity across the fund range (including the established Sustainable strategy) with continuing growth from flows and performance, and potential in recent acquisitions; set against compelling market dynamics. Liont
Companies: Liontrust Asset Management PLC
Today's news & views, plus announcements from SSPG, PNL, SHED, TUNG, ANX, BLTG, AVAP
AVO’s goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, important technical milestones have significantly derisked the project. Now, AVO is working on the verification and validation phase, prior to LIGHT being used on the first patients to support CE marking. In its recent technical update, the company highlighted progress made over the past three months towards a ful
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OCI hosted its annual Capital Markets (CM) day on 18 May 2021.With presentations from Oakley Capital and investee companies, as well as Q&A, including the OCI board, it gave a clear view of the prospects of the organisation. We have argued in previous notes that OCI’s outperformance (five-year CAGR NAV total return 16%) is driven by i) high-growth companies and sector champions enjoying structural tailwinds and often digital disruption benefits (2020 average 20% EBITDA growth), ii) repeatable an
Companies: Oakley Capital Investments
Finsbury Growth & Income Trust (FGT) is managed by Nick Train, one of the founding partners of boutique investment firm Lindsell Train. He is optimistic on the current outlook for UK equities, all the more so given several years of relative underperformance; in particular, the manager believes that global investors are underestimating the level of technological innovation within the UK corporate sector. While FGT’s relative performance has lagged that of its peers and the UK market in recent mon
Companies: Finsbury Growth & Income Trust PLC
Urban Logistics REIT (“ULR”) has delivered a watershed year: doubling the portfolio with a disciplined approach focusing on value-add opportunity through reversion and regear. Finals show rental income doubling from acquired assets, with recurring EPS in line with our forecast. EPRA NAV was 6% ahead of N+1Se, as valuation yields tightened. The manager has secured a further c.£150m pipeline of similarly attractive assets. We make a modest upgrade to EPRA NAV on better valuation. We see sustained
Companies: Urban Logistics REIT plc
Trident Royalties Plc (AIM: TRR) has, this morning, noted progress at the Mimbula Copper Project, over which Trident holds a gross revenue royalty (GRR). Mimbula's owner and operator, Moxico Resources Plc, recently completed a US$73million equity financing which will be used to develop and build a standalone SX-EW plant. We have also updated our production assumptions for the Thacker Pass Lithium Royalty based on comments by Lithium Americas Corp. (NYSE/TSX:LAC) in their Q1 2021 results last mon
Belvoir has exchanged contracts to acquire The Nottingham Building Society’s mortgage services business for £0.6m in cash. In isolation this adds c.1% to our EPS forecasts in a full year but we believe it could pave the way for Belvoir to significantly increase its Financial Services sales as it provides direct access to a substantial source of clients with savings and a high likelihood of needing a mortgage for the first time (50,000 18-39 year old Lifetime ISA savers). We will look to reflect
Companies: Belvoir Group PLC