The Dutch insurance and asset-management company AEGON NV reported on Thursday that it will cut its dividend by more than half as it reported a 67% fall in net profit for H1-2020.
AEGON will pay a dividend of €0.06 for the half-year (interim dividend 2020), compared with 15 € cents for the period last year. This is on top of the company’s decision to not pay a final 2019 dividend.
The company reported underlying pre-tax earnings of 700 million euros ($826.7 million) for the first half, down 31% from 1.01 billion euros in the same period of 2019, with 202 million in net income.
On the basis of the first half 2020 results and in light of the uncertain economic outlook, Aegon withdraws its 2019-2021 financial targets. New financial targets will be provided at a Capital Markets Day in December.
The AEGON shares are trading 14% lower after the news on Thursday and yesterday the shares closed at 3.02 euros already down 26% in the year to date.