Net income per share increases 7% to EUR 0.44
AEGONâ€™s Executive Board Chairman, Donald J. Shepard said: â€œNew business developed positively, operating efficiency improved and the contribution of the J.C. Penney direct marketing insurance operations lived up to our expectations. We also experienced positive currency influences and a larger than expected contribution from Transamerica Finance Corporation. All these factors together more than offset the negative influences of a lower investment portfolio yield, additional bond default provisions and weak equity market performance.
We continue to have a positive outlook for the underlying development of our core business. Economic and financial market uncertainty still exists and creates a wide range of possible earnings forecasts, so we remain cautious about the rest of the year.â€
Earnings outlook 2002
Barring unforeseen circumstances, we maintain our forecast that net income and net income per share for 2002 will be at least equal to the 2001 earnings.
Key points first quarter 2002
* Standardized new life production increased 4% to EUR 666 million; gross deposits increased 10% to EUR 8,690 million; off-balance sheet production increased 23% to EUR 5,249 million.
* Results include EUR 61 million (USD 53 million) of income before tax for the J.C. Penney direct marketing insurance operations, which were acquired in June 2001.
* Comparative results for the first quarter 2001 included EUR 18 million (USD 17 million) of income before tax from the divested operations in Mexico.
* Transamerica Finance Corporation, of which the results are volatile from quarter to quarter, net income was EUR 27 million (USD 24 million) compared to EUR 3 million (USD 3 million) in the prior year.
* The bond default provision in the US was strengthened due to higher default levels: EUR 94 million (USD 82 million) compared to a EUR 16 million (USD 15 million) addition prior year.
* The influences on net income of currency rates, the acquired direct marketing insurance operations of J.C. Penney, and the sale of the operations in Mexico were 4%, 7% and â€“2% respectively. The influences on net income per share were 3%, 2% and â€“1%, respectively.
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