Aegon sets targets and resumes dividends
DUTCH insurer Aegon said yesterday it would target seven to 10 per cent annual earnings growth and resume dividend payments, as it unveiled a new strategy after repaying Dutch state aid.
Earlier this month, Aegon became the first Dutch financial institution to repay the state in full, repaying the government €4.1bn (£3.6bn) to open the way to a resumption in dividends and the possibility to make takeovers.
The company said it aimed to grow underlying earnings before tax by an annual seven to 10 per cent, on average from 2010-15, and resume dividends this year. It plans to pay a 10 cent dividend over the second half of 2011 in May 2012.
“With the completion of repayment to the Dutch State, we are focusing our full attention to achieving ambitious financial targets, consistent with our ambition to be a leader in all our chosen markets in the coming years,” chief executive Alex Wynaendts said.
Aegon said it would target a return on equity of 10-12 per cent by 2015 and increase fee businesses to 30-35 per cent of underlying earnings before tax by 2015.