By Michele Maatouk
Date: Wednesday 13 Jan 2016
LONDON (ShareCast) - (ShareCast News) - Shares in Aegon surged after the Dutch insurance group announced a €400m (£299m) share buyback and lifted its 2015 dividend.
The company is looking to improve its operational performance, targeting a group return on equity of 10% by 2018.
It will reduce annual operating expenses by €200m by the end of 2018 and make additional investments in digital capabilities and expertise of €50m per year above the current level to support the organic growth of the business.
Chief executive officer Alex Wynaendts said: "I am pleased that we have a strong Solvency II capital ratio of 160%, which is in the upper-end of our target range of 140-170%. This allows us to launch a €400 million share buyback program today and announce a 9% increase in the dividend for the full year of 2015."
Aegon lifted its final dividend per share to €0.13, bring the total dividend per share for 2015 to €0.25.
The company also announced plans to restructure US operations from a business lines orientation into one, functionally-organised business to get closer to customers.
It also intends to implement the outcome of the strategic review of Aegon's businesses in the UK; explore options for the annuity book, and continue the growth of the successful platform.
At 1007 GMT, Aegon shares were up 11.7% to €5.53.
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Currency | Euro |
Share Price | 6.31 |
Change Today | 0.04 |
% Change | 0.57 % |
52 Week High | 6.34 |
52 Week Low | 4.12 |
Volume | 6,501,079 |
Shares Issued | 2,010.00m |
Market Cap | 12,691m |
Beta | 0.75 |
Strong Buy | 4 |
Buy | 3 |
Neutral | 8 |
Sell | 0 |
Strong Sell | 0 |
Total | 15 |
Time | Volume / Share Price |
17:35 | 10,446 @ 6.31 |
17:35 | 9,906 @ 6.31 |
17:35 | 4,225 @ 6.31 |
17:35 | 3,180 @ 6.31 |
17:35 | 654 @ 6.31 |
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