Aegon Is Deep in a Simplified Long-Term Savings Turnaround

Aegon has had its share of problems over the last 15 years, averaging close to 4.5% of return on equity over this period. That is well below the 11% cost of capital we assign to the business. These struggles have stretched across capital, solvency, governance, management, and ongoing nonrecurring items. Additionally, communication with the investment community was not great under former CEO Alex Wynaendts. However, we think results have signalled a change of direction in terms of strategy, wiping the slate clean, communication, and financial strength. Lard Friese was appointed CEO and we welcome this change. With this appointment, he returns to a business he spent 10 years at in the early part of his career.