Aegon: shares drop on disappointing forecasts

(CercleFinance.com) - Shares of Dutch insurer Aegon fell on Thursday, after chief executive Lard Friese outlined the company's new strategy and financial targets for the period 2021 to 2023.


At today's Capital Markets Day, Aegon said it would narrow its strategic focus to selected markets, now focusing on three "core" countries (the US, the Netherlands, and the UK) and three "growth" markets (Spain & Portugal, China, and Brazil).

The insurance group also unveiled a savings plan aimed at cutting costs by 400 million euros by 2023 compared with 2019, representing about 13% of its cost base

However, analysts noted that the company's forecasts were somewhat shy of market expectations.

In particular, Aegon said it expected to grow dividend per share to around 0.25 euro per share over 2023.

UBS analysts cheered "credible targets," but also pointed out that the company's forecasts appear "light" versus consensus.

The Amsterdam-listed shares were down over 1% as a result.

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