As of Thursday morning, Aegon N.V. (AEG) shares are trading at $4.94, up 8.33% in the premarket session. Last trading session, AEG stock gained 2.01% to $4.56. AEG stock traded 1.47 million shares last day, below the 1.71 million shares average daily trading volume published for the last 50 days.
Within the last five days, AEG stock has increased 7.04 %; however, in the last month, it has gained 10.68 %. AEG stock price has advanced 15.44 percent so far this year after falling -8.06 percent over the past three months. As a result of positive financials and redeemed capital securities, AEG share price is on the rise.
AEG’s financial and growth status:
Aegon’s roots can be traced back to the first half of the nineteenth century, more than 175 years ago. Over the years, AEG has expanded internationally, operating in North and South America, Europe, and Asia. Today, AEG is one of the largest providers of life and pension insurance, as well as asset management services. With AEG, people are able to achieve financial security throughout their lives.
The financial results of Aegon’s second quarter ended June 30, 2021, were announced today.
Highlights of AEG Stock financial performance:
- Aegon (AEG) posted a net result of EUR 849 million in the second quarter of 2021 due to favorable market movements and strong operating results.
- The operating result at AEG increased by 62% compared with the second quarter of 2020 to EUR 562 million.
- The increase in operating results was driven by cost-savings, increased fees due to a higher equity market, and normalization in claims experiences in the United States.
- AEG’s Cash Capital at Holding reaches EUR 1.4 billion, which is still in the top half of Aegon’s operating range.
- AEG’s capital ratio is above its respective operating level in all three of its main units; the Group Solvency II ratio increased by 14.4% points to 208%.
- AEG announced a buyout program for lump-sum variable annuities in the US and plans to expand its dynamic hedging program in order to release capital and increase predictability.
- In order to reflect steady progress made on AEG’s financial and strategic priorities, their Interim dividend is increased by 0.02 EUR to 0.08 EUR per common share.
Capital security redemption strategy:
Aegon (AEG) announced today that it will redeem the USD 250 million floating-rate perpetual capital securities issued in 2005 with a minimum coupon of 4%. This redemption aligns with AEG’s plans to reduce leverage. As part of this redemption, the grandfathered Tier 1 securities will be repaid together with accrued and unpaid interest.
In the event of redemption, AEG’s gross financial leverage will fall by approximately 700 million EUR since the third quarter of 2020 to EUR 5.9 billion. By 2023, Aegon (AEG) aims to reduce its gross financial leverage to EUR 5.0 billion to EUR 5.5 billion.
