Securities and Exchange Commission
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d/16
of the Securities Exchange Act of 1934
August 2018
Aegon N.V.
Aegonplein 50
2591 TV THE HAGUE
The Netherlands
Aegons press release, dated August 16, 2018, is included as appendix and incorporated herein by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Aegon N.V. | ||||||
(Registrant) | ||||||
Date: August 16, 2018 | By | /s/ J.O. van Klinken | ||||
J.O. van Klinken | ||||||
Executive Vice President and General Counsel | ||||||
Aegon to divest its businesses in Czech Republic and Slovakia
Aegon has agreed to sell its businesses in Czech Republic and Slovakia for EUR 155 million to NN Group. The transaction is consistent with Aegons strategic objective to optimize its portfolio and capital allocation across its businesses.
This divestment is a further step in rationalizing our geographical footprint and focusing our resources on our key markets, said Alex Wynaendts, CEO of Aegon. The transaction guarantees continued customer service, offers new opportunities for employees, and is in the best interest of our shareholders.
The businesses in Czech Republic and Slovakia predominantly provide unit-linked products in addition to offering term life products and a wide range of riders, as well as pension services in Slovakia. In 2017, underlying earnings before tax of the combined operations amounted to EUR 16 million.
The proceeds from the divestment will be upstreamed to the group. As a result of the transaction, Aegons group solvency ratio is estimated to improve by approximately 1%-point. Based on the book value as of December 31, 2017 and taking into account dividends paid in 2018, the book gain is expected to amount to approximately EUR 80 million and will be reported in Other income.
The transaction is subject to customary regulatory approvals, and is expected to close early 2019. This transaction will have no material impact on Aegons other operations in Central & Eastern Europe.
About Aegon
Aegons roots go back almost 200 years to the first half of the nineteenth century. Since then, Aegon has grown into an international company, with businesses in more than 20 countries in the Americas, Europe and Asia. Today, Aegon is one of the worlds leading financial services organizations, providing life insurance, pensions and asset management. Aegons purpose is to help people achieve a lifetime of financial security. More information on aegon.com/about.
Contacts
Media relations Dick Schiethart +31 (0) 70 344 8821 gcc@aegon.com |
Investor relations Jan Willem Weidema +31 (0) 70 344 8028 ir@aegon.com | |
For the Editor
Aegons brands & markets
Company presentation
Aegon fact sheets |
Updates
Follow Aegon on Twitter
Register for Aegons Newsletter
Calendar event reminders |
Disclaimer
Forward-looking statements
The statements contained in this document that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: aim, believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, goal, should, would, could, is confident, will, and similar expressions as they relate to Aegon. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Aegon undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties. Such risks and uncertainties include but are not limited to the following:
| Changes in general economic conditions, particularly in the United States, the Netherlands and the United Kingdom; |
| Changes in the performance of financial markets, including emerging markets, such as with regard to: |
| The frequency and severity of defaults by issuers in Aegons fixed income investment portfolios; |
| The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities Aegon holds; and |
| The effects of declining creditworthiness of certain public sector securities and the resulting decline in the value of government exposure that Aegon holds; |
| Changes in the performance of Aegons investment portfolio and decline in ratings of Aegons counterparties; |
| Consequences of an actual or potential break-up of the European monetary union in whole or in part; |
| Consequences of the anticipated exit of the United Kingdom from the European Union and potential consequences of other European Union countries leaving the European Union; |
| The frequency and severity of insured loss events; |
| Changes affecting longevity, mortality, morbidity, persistence and other factors that may impact the profitability of Aegons insurance products; |
| Reinsurers to whom Aegon has ceded significant underwriting risks may fail to meet their obligations; |
| Changes affecting interest rate levels and continuing low or rapidly changing interest rate levels; |
| Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates; |
| Changes in the availability of, and costs associated with, liquidity sources such as bank and capital markets funding, as well as conditions in the credit markets in general such as changes in borrower and counterparty creditworthiness; |
| Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets; |
| Changes in laws and regulations, particularly those affecting Aegons operations ability to hire and retain key personnel, taxation of Aegon companies, the products Aegon sells, and the attractiveness of certain products to its consumers; |
| Regulatory changes relating to the pensions, investment, and insurance industries in the jurisdictions in which Aegon operates; |
| Standard setting initiatives of supranational standard setting bodies such as the Financial Stability Board and the International Association of Insurance Supervisors or changes to such standards that may have an impact on regional (such as EU), national or US federal or state level financial regulation or the application thereof to Aegon, including the designation of Aegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII); |
| Changes in customer behavior and public opinion in general related to, among other things, the type of products Aegon sells, including legal, regulatory or commercial necessity to meet changing customer expectations; |
| Acts of God, acts of terrorism, acts of war and pandemics; |
| Changes in the policies of central banks and/or governments; |
| Lowering of one or more of Aegons debt ratings issued by recognized rating organizations and the adverse impact such action may have on Aegons ability to raise capital and on its liquidity and financial condition; |
| Lowering of one or more of insurer financial strength ratings of Aegons insurance subsidiaries and the adverse impact such action may have on the premium writings, policy retention, profitability and liquidity of its insurance subsidiaries; |
| The effect of the European Unions Solvency II requirements and other regulations in other jurisdictions affecting the capital Aegon is required to maintain; |
| Litigation or regulatory action that could require Aegon to pay significant damages or change the way Aegon does business or both; |
| As Aegons operations support complex transactions and are highly dependent on the proper functioning of information technology, operational risks such as system disruptions or failures, security or data privacy breaches, cyberattacks, human error, failure to safeguard personally identifiable information, changes in operational practices or inadequate controls including with respect to third parties with which we do business may disrupt Aegons business, damage its reputation and adversely affect its results of operations, financial condition and cash flows; |
| Customer responsiveness to both new products and distribution channels; |
| Competitive, legal, regulatory, or tax changes that affect profitability, the distribution cost of or demand for Aegons products; |
| Changes in accounting regulations and policies or a change by Aegon in applying such regulations and policies, voluntarily or otherwise, which may affect Aegons reported results, shareholders equity or regulatory capital adequacy levels; |
| Aegons projected results are highly sensitive to complex mathematical models of financial markets, mortality, longevity, and other dynamic systems subject to shocks and unpredictable volatility. Should assumptions to these models later prove incorrect, or should errors in those models escape the controls in place to detect them, future performance will vary from projected results; |
| The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Aegons ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions; |
| Catastrophic events, either manmade or by nature, could result in material losses and significantly interrupt Aegons business; and |
| Aegons failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving and excess cash and leverage ratio management initiatives. |
This press release contains information that qualifies, or may qualify, as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation (596/2014). Further details of potential risks and uncertainties affecting Aegon are described in its filings with the Netherlands Authority for the Financial Markets and the US Securities and Exchange Commission, including the Annual Report. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, Aegon expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Aegons expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.