AEGON Overcomes Weak Dollar, Increases 3Q Net Income

By Allison Bell

November 06, 2003 at 07:00 PM

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NU Online News Service, Nov. 6, 2003, 5:20 p.m. EST – AEGON N.V., The Hague, Netherlands, says strong results at its U.S. operations and other operations helped it increase third-quarter net income despite the continuing weakness of the U.S. dollar.

The company is reporting the equivalent of $538 million in net income for the latest quarter on $7.8 billion in revenue, up from $437 million in net income on $7.3 billion in revenue for the third quarter of 2002.

Back home, the company is reporting 464 million euros in net income on 6.7 billion euros in revenue, compared with 429 million euros in net income on 7.2 billion euros in revenue for the third quarter of 2002.

The conversions here use an exchange rate of $1=0.86252 euros for the 2003 results, and an exchange rate of $1=0.98102 euros for the 2002 results. The exchange rates come from OANDA Corp., New York.

The drop in the value of the dollar between Sept. 30, 2002, and Sept. 30, 2003, has cut the euro value of each dollar about 12%. In dollars, the company's net income was up 23%. In euros, AEGON's third-quarter net income was up 8%.

In the United States, the dollar value of fixed annuity deposits was down 34% and the dollar value of variable annuity deposits was down 51% because of changes in contract terms, crediting rates and commission structures. But the company still managed to increase U.S. net income to $342 million, from $272 million.

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