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AEGON Announces Plan To Repurchase 29.3 Million Shares

Published 07/05/2016, 10:40 PM
Updated 07/09/2023, 06:31 AM

AEGON N.V. (NYSE:AEG) announced that its board of directors has approved a 29.3 million share buyback plan to offset the dilutive effect of the 2015 final stock dividend. The company will pay future stock dividends with these repurchased shares. In addition, these shares will be held as treasury shares.

The buyback plan became effective on Jul 4, 2016 and the company anticipates the repurchase to be completed on or before Aug 12, 2016. The company, via third party, will buy back the shares at a maximum of the daily volume weighted average price.

In May, the company completed the buyback of 42 million shares. The company spent $226.2 million (€200 million) and $225.6 million (€200 million) in two tranches.

In January, the company presented its financial targets for 2018 at the Analyst & Investor Conference in London. The company intends to increase capital returns to shareholders, which will be underscored by the previously announced buyback of $451.8 million (€400 million). Moreover, the capital return will includes the 9% increase in the dividend declared in 2015.

With an efficient capital deployment strategy and stable financial position, the multi line insurer remains well poised to engage in more activities that in turn will boost shareholders return.

Further, AEGON has sufficient liquidity owing to solid operational performance that should support more such buyback activities in the future.

Hence, the company’s capital deployment through share buybacks, as well as dividend payment looks impressive. This in turn, makes the stock an attractive pick for yield-seeking investors.

Investors interested in the insurance industry can consider stocks like MGIC Investment Corp. (NYSE:MTG) , Cigna Corp. (NYSE:CI) and James River Group Holdings, Ltd. (NASDAQ:JRVR) .

CIGNA CORP (CI): Free Stock Analysis Report

AEGON N V (AEG): Free Stock Analysis Report

MGIC INVSTMT CP (MTG): Free Stock Analysis Report

JAMES RIVER GRP (JRVR): Free Stock Analysis Report

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