Aegon reports Q3 losses, share value drops

Amsterdam  - The value of Dutch insurer giant Aegon's shares fell slightly Thursday on the Amsterdam stock exchange following the publication of its third-quarter company results.

Aegon said it lost 329 million euros (428.92 million dollars) in the third quarter of 2008, below the 350 million euros which the company had announced to shareholders in late October.

By 11 am local time (1000 GMT), Aegon share value stood at 3.92 euros, a drop of 2 per cent.

Aegon said the loss came mainly from the ongoing drop in share value on the stock exchange and write-offs on investments.

Write-offs on the US banks Lehman Brothers and Washington Mutual, both of which collapsed earlier this fall, amounted to 336 million euros.

Aegon board chairman Alex Wynaendts said the insurer's underlying activities however remained resilient despite the ongoing turmoil on international financial markets.

"Aegon is well-positioned to resist the current financial crisis," Wynaendts said.

The company also announced it would continue to take extra measures to increase its solvency.

In the third quarter of 2008, the sale of investment portfolios in 729 million euros in extra capital.

Aegon said it would continue to increase its capital this way with another 600 to 800 million euros in the final quarter of 2008.

On October 28, Aegon was the second Dutch financial company to receive state support to cope with the credit crisis.

The company received 3 billion euros in exchange for which the Dutch state received Aegon shares, 8.5 per cent interest on its investment and the right to appoint two people to Aegon's board.

Aegon's financial director Jos Streppel on Thursday said the Dutch government is due to announce its board appointments this week. (dpa)

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