Supplemental offering circular EUR 450,000,000 perpetual ... - Aegon
Supplemental offering circular EUR 450,000,000 perpetual ... - Aegon
Supplemental offering circular EUR 450,000,000 perpetual ... - Aegon
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OTHER COUNTRIES<br />
HUNGARY<br />
Income before tax<br />
ÁB-AEGON’s income before tax of HUF 16.6 billion for 2003 showed a 16% increase compared to 2002.<br />
The increase in income before tax came from life business, with 15% growth, and from the non-life business,<br />
which showed 20% growth. For both businesses, the main reasons for the increase are the premium income<br />
growth and cost efficiencies. Additionally, in non-life, the favorable claim payments were partially offset by<br />
a strengthening of technical provisions. The fee income from managed assets rose by 40% to HUF 2.8<br />
billion, reflecting the increase in the pension fund portfolio and assets under management.<br />
Premiums to reinsurers increased by more than 8%, or HUF 0.1 billion. This increase was consistent with<br />
the development of premium income. Claim payments increased by HUF 2.8 billion, mainly due to<br />
maturities of life policies in the run-off portfolio. Non-life claims developed favorably in 2003 and were<br />
HUF 0.5 billion lower than in 2002. Commissions increased by HUF 1 billion, due to high pension fund and<br />
non-life sales.<br />
As a result of expense control and technical innovations, expenses decreased by HUF 0.2 billion, or 2%,<br />
compared with 2002, despite 5% inflation.<br />
Revenues<br />
Total revenues increased by HUF 5.1 billion compared to 2002. Premium income increased by HUF 5.1<br />
billion. Life premium income increased by HUF 2.8 billion, mainly due to higher sales of unit-linked<br />
products, while non-life premium income increased by HUF 2.3 billion. The non-life growth was due<br />
primarily to a HUF 1.5 billion increase in the household portfolio and a HUF 0.8 billion increase in the car<br />
insurance and other non-life product lines. The measures taken to protect the existing portfolio as well as the<br />
increased number of agents were the main factors in the increase in premium income.<br />
Investment income decreased by HUF 0.9 billion, mainly due to the maturity of high yield long-term bonds.<br />
In the second half of the year, as a result of monetary interventions, market yields increased substantially,<br />
affecting the investment performance and the market value of the portfolio.<br />
Fee income increased by 40%, or HUF 0.8 billion, from 2002, due to a 31% increase in assets under<br />
management and the increase in the number of participants in the pension funds managed by ÁB-AEGON.<br />
SLOVAKIA<br />
AEGON’s life operations in Slovakia started in September 2003 as planned. Total premium income was<br />
SKK 5 million, whereas commissions and expenses were SKK 206 million.<br />
SPAIN<br />
Income before tax<br />
AEGON Spain reported income before tax of <strong>EUR</strong> 36 million for 2003, a significant increase compared to<br />
2002.<br />
Pre-tax results in the life business generated income before tax of <strong>EUR</strong> 4 million, an increase of <strong>EUR</strong> 15<br />
million compared to last year’s loss of <strong>EUR</strong> 11 million. The main reason for the increase was the absence of<br />
the negative effects of the previous year. These negative effects were mainly caused by the losses of<br />
MoneyMaxx, because of low production resulting from the situation in the equity markets, and accelerated<br />
amortization of DPAC.<br />
Non-life business reported income before tax of <strong>EUR</strong> 32 million in 2003, compared to <strong>EUR</strong> 23 million in<br />
2002, mainly due to an increase in revenues and a decrease in claims. The non-life claims ratio improved in<br />
16