AEGON PLANS DIVESTMENTS, OVERHAUL, REDUCTION IN US DEPENDENCE

Netherlands-based assurer Aegon has revealed a new growth strategy that it hopes will generate underlying earnings growth of 10% a year, leading to at least 15% return on equity by 2012, three points higher than that achieved in 2007. CEO Alex Wynaendts said that Aegon was also looking for average net underlying earnings growth of at least 10% a year through to 2012. To achieve this, Aegon plans to accelerate growth in new markets “to achieve a more balanced international presence”, with more than 50% of the Group’s capital allocated to businesses outside the US by 2012. Underperforming assets will be jettisoned “to release capital for growth”. The assurer will now be managed “as an international group”, with life reinsurance and asset management handled on a global scale. The new global Aegon Asset Management will have €271bn under management. Erik van Houwelingen has been appointed chairman of the executive committee.