Aegon NV reports 14.9% rise in worldwide profit for 1995 Company rebounds from effect of strong guilder

March 30, 1996|By Jay Hancock | Jay Hancock,SUN STAFF Bloomberg Business News contributed to this report.

Aegon NV, a Dutch insurance company with its U.S. headquarters in Baltimore, said its worldwide profit rose by 14.9 percent in guilders last year as all of its business lines produced stronger results.

Life insurance showed especially robust profits, helping the company compensate for negative effects of a strong guilder.

In trading on the New York Stock Exchange yesterday, Aegon equity securities rose to $47.38 per share, up $1.63.

Aegon employs about 900 people in Maryland, where its Aegon USA unit operates Monumental Life Insurance Co. and Monumental General Insurance Group. More than 30 percent of its business comes from the United States.

In dollars, Aegon earned $824 million last year. That was a 30 percent increase over its dollar-denominated 1994 profits, fueled the strong guilder.

Aegon said it was confident that profits in guilders would rise by between 7 percent and 12 percent this year.

"Aegon never disappoints. It's a great company in a growth market," said Hans Pluijgers, a financial analyst at Bank Bangert Pontier NV in the Netherlands.

Total revenue for Aegon last year rose 0.7 percent last year to 20.9 billion guilders, or $13 billion. But not counting currency effects and its unprofitable United Kingdom business, which it sold, Aegon said revenue rose by 9.2 percent.

Guilder profits came to 1.32 billion.

In the United States, Aegon said it was able to improve results by paying more attention to expenses and boosting premium income. All told, Aegon's American units earned $376 million last year, a 29 percent increase. The company did not publish separate results for its fourth quarter.

Pub Date: 3/30/96

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