Life insurer Aegon NV (AEG) Thursday reported a 2% drop in second-quarter net profit, as the weaker dollar and financial charges at its operations in the Netherlands and the U.K. hurt the bottom line, adding that the current economic environment poses serious challenges.

Aegon, which generates the bulk of its earnings in the U.S. through its Transamerica unit, said net profit fell to EUR403 million from EUR413 million a year ago.

The company, which in June fully repaid the EUR3 billion state aid it received during the financial crisis, said earnings were hit by costs to fix administrative problems at its operations in the U.K., and charges to offset the negative impact of higher life expectancy in the Netherlands.

The weakening dollar also had a EUR44 million negative impact.

Chief Executive Alex Wynaendts said the economic environment poses "considerable challenges." However, he said Aegon's balance sheet is strong, due to a reduced exposure to equity and credit markets and a "very limited" exposure to debt-troubled countries in the euro-zone.

"At the same time, we are restructuring our businesses in our key markets. These actions...support our confidence in Aegon's growth prospects going forward," he said.

Aegon shares closed Wednesday at EUR2.97, having lost 44% in the past three months amid a wider market slump.

- By Maarten van Tartwijk; Dow Jones Newswires; +31 20 571 5201; maarten.vantartwijk@dowjones.com

Scor (PK) (USOTC:SCRYY)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Scor (PK) Charts.
Scor (PK) (USOTC:SCRYY)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Scor (PK) Charts.