Tough Times Ahead For Insurer Aegon?

Tough times ahead for Insurer Aegon?

Aegon life insurance company Tweeted a few hours ago:

“Watch CEO Lard Friese introduce Aegon’s 1H 2020 results and explain our ambition to transform Aegon into a more focused, high-performing Group.”

Lard Friese, the CEO of Insurer Aegon, introduced the company’s 2020 first half results. In this, Aegon CEO Lard Friese, discussed how Aegon insurance company, continued to serve its customers, amidst the COVID-19 pandemic. He also shared his ambition on how he wished to transform the company and make it into one that is a more focused, high-performing group.

For the first time, Lard Friese was allowed to present the figures of Insurer Aegon. He had no good news for the investors of the company. The company has been very badly hit by the Coronavirus pandemic and is in hot waters in America. This is because more customers died in America, than was expected. As such, more money had to be paid out, which was a lot more than the usual on death benefits.

Managing Director Errol Keyner says:

“Aegon has not been profitable for ten to twenty years. In the 1990s, valuations were exaggerated, too optimistic.”

Plus, the company also suffered because of low interest rates.

Insurer Aegon now has plans to leave some countries. But it is not at all certain as to which countries the company will leave.

Mercurius Vermogensbeheer analyst Koen Bender says:

“In any case, they have to leave countries where they do not have a dominant position. Then it is simply better to leave such a country,” said the analyst. Corné van Zeijl thinks it is not surprising if they leave Eastern European countries. He thinks of Hungary, for example.”

Is Aegon too big to fail? Only time will tell!

Let’s wait and watch what happens with Insurer Aegon.

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