aegonbrakeup.com
LETTER TO AEGON BOARD
Ladies and Gentleman,
Aegon is severely underperforming its peers.There is only one path for Aegon to follow: it should become a smaller and simpler company. We are urging for the case for dismantling the corporate structure of Dutch insurer Aegon. It’s value could increase 40-60% by separately listing its US and EU units.
These are the main concerns we address:
•The credibility of the current management is lost. It’s time for a new CEO, it’s time for change.
•Separately listing it’s US and EU units to create more shareholder value.
In the mean time Aegon should:
•Streamline operations into a more competitive insurer by committing to sell, spin, or otherwise separate non-core operations. This could be done by selling it’s UK, New Markets and Asia business.
•Return on equity should be double digit through improved cost reductions. The current ROE goal is to conservative.
•More predictable and less volatile earnings.
•Break down of “Vereniging Aegon” which primary objective is to protect Aegon in a special cause such as a hostile takeover bid. The special voting right and the call option should be broken down.
•The share buy back program should be stopped. We suggest to hold the cash at holding level of EUR 1.5 mld and not using it for the share buy back program.
•No further raising of any dividend until Solvency II is above 170%.
There is no more time for providing excuses for past underperformance, it’s time for action. We look forward to engaging with shareholders, board members, and management regarding the future strategy of the company.