(Bloomberg) — Aegon NV declined the most in almost three months after the Dutch insurer swung to a third-quarter net loss of 524 million euros ($563 million) on the sale of its Canada business, changes to the way it calculates risk and lower fixed-annuity earnings.
The results were affected by “assumption changes, our ongoing model refinement program, and the anticipated book loss on the sale of our low-return business in Canada,” Chief Executive Officer Alex Wynaendts said in a statement on Thursday. Net income was 52 million euros a year earlier.
Aegon fell as much as 9.2 percent in Amsterdam trading. The shares were down 7.9 percent at 11:50 a.m., the biggest drop since Aug. 24 and bringing the decline for this year to about 15 percent.
Aegon’s solvency ratio, a measure of available capital in relation to requirements to meet obligations toward policyholders, rose to 225 percent from 206 percent at the end of June, the company said.
Aegon, which is preparing for stricter capital demands next year, “still hasn’t received the internal model approval” from the Dutch central bank for the new capital regime, Chief Financial Officer Darryl Button said in a telephone interview. The new rules, known as Solvency II, come into force in January.