AEGON

Analysis of Aegon share price

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Life insurance is a very profitable banking product for the institutions that offer it. It's therefore logical that certain companies specializing in this field of activity be listed on the stock market. This is the case of the Aegon Company, whose detailed activity we'll be presenting to you here along with the stock. Using the live price or price analysis of the Aegon stock, will allow you to perform your own analyses of this stock.

Elements that can influence the price of this asset:

Analysis N°1

Data regarding the aging of the population, especially with regard to the American market, is to be watched closely because of its impact on pension products.

Analysis N°2

The operations to develop the Company's activities in the emerging markets of China and India are also good indicators of growth.

Analysis N°3

Aegon's focus on its core businesses without deviating from them is also important due to the risks associated with financial fluctuations.

Analysis N°4

Following the Solvency II agreements, competition will become more severe for Aegon so a study of the evolution of the market shares of each major competitor is essential.

Analysis N°5

Monitoring the effects of increasingly stringent regulations in the US market, which is also one of the most complex, and their impact on costs for Aegon is also essential.

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General presentation of Aegon

The Dutch group Aegon is one of the world leaders in life insurance. But although life insurance represents the product the most sold by Aegon, i.e. 85% of its turnover, it also markets other types of insurance and develops traditional banking activities.

While Aegon primarily develops its sales in the Netherlands, it also reaches America, Britain and other regions of the world and currently employs over 28,000 people.

The Aegon share price is currently listed on the Euronext Amsterdam market and is included in the calculation of the Dutch stock market index AEX.

In recent years, this stock has experienced a significant drop from February 2007 to March 2009 before stabilizing temporarily.

Analysis of Aegon share price
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The major competitors of Aegon

The following is a list of the Aegon Group's main competitors in its sector of activity.

Allianz 

The German insurance group Allianz is of course one of Aegon's main competitors at the moment. It is the largest European insurer and the fourth largest international asset manager. The group is active in property and casualty insurance and life insurance in Germany, Switzerland, France and Italy and also markets banking products.

AIG

The AIG Group is also known as the American International Group and is one of the world's leading insurance and financial services companies. The group currently employs over 56,000 people and has over 90 million customers. It operates in around 100 countries.

Aviva 

Another serious competitor to Aegon is the Aviva Group which is an insurance company operating in 14 countries around the world and is one of the largest in the UK. It is also one of the leaders in the European insurance sector.

AXA 

There is also competition from the French group AXA, which also specialises in insurance and asset management and has been a leader in this sector for many years.

Generali

Finally, the Italian insurance company Generali is one of the fifty largest companies in the world and the third largest insurance company in the world after Allianz and AXA. It has over 72 million customers worldwide.


The major partners of Aegon

Aegon has developed an international marketing strategy through various partnerships which have enabled it to expand its activities around the world. Here are some examples of contracts recently put in place by the insurance company with some large European entities.

Banco Santander

The Aegon group became a partner of the Spanish group Banco Santander in 2013 as part of a 25-year agreement and a 51% stake in Aegon in a life and non-life insurance company for € 220 million.

La Banque Postale

In 2015, La Banque Postale announced the establishment of a strategic partnership with the Aegon group in asset management through the acquisition of Aegon's stake in the French bank. The purpose of this agreement is to develop and consolidate the expertise of Banque Postale Asset Management.

Atos

In 2016, the Atos group entered into a 13-year contract with Aegon for the protection of business processes in the United Kingdom.

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The factors in favour of a rise in the Aegon share price:

Trading the Aegon share price live on stock markets is now possible thanks to CFDs from online brokers. But before you embark on this adventure and take your first positions in this asset, you must know the strengths and weaknesses of the group which are all indicators that will help you better anticipate the evolution of its financial and economic situation and therefore the progression of its trends.

  • First of all, the Aegon group benefits from an interesting positioning all over the world. Its international presence is very well thought out strategically particularly in the key markets that are the emerging markets. This strategic location is a real asset for the company, which protects itself against the geo-economic risks of a single sector.
  • The fact that the Aegon group has many distribution channels is another advantage for the distribution of the products of this company. Thanks to this multiplicity of distribution channels, the risks of lower sales are significantly reduced.
  • Equity investors and shareholders also greatly appreciate the fact that Aegon has significant capital strength which continues to increase over time. This characteristic allows it to better withstand market changes and have a very practical and attractive investment force.
  • The Aegon group is a company that has many diverse expertise in different fields indeed. Aegon is an expert in the field of life insurance, retirement and even asset management. Thanks to this diversity, Aegon is able to apply a good strategic distribution of its activities and protect itself against the risks linked to one and the same area of expertise.
  • Finally, Aegon can draw on its large work force with over 24,000 employees around the world to meet growing demand.
The factors in favour of a drop in the Aegon share price:

Although the Aegon group has many strengths allowing it to face the future more or less calmly and to conquer new investors in the stock market, you need to be aware of its main weaknesses which may hamper this upward progression or cause a one-off drop in the price of this asset. Here are the negative elements to take into consideration.

  • First of all, the Aegon group, although presenting interesting growth figures, is highly exposed to risks linked to the sovereign debt of European countries. The banking and insurance sector are the first to be affected by such economic crises with substantial drops in income.
  • The international expansion of the company remains limited and the United States market remains the majority. As a result, Aegon shows a very significant dependence on the American market, which again represents a very important risk factor in the event of a crisis in this economic zone.

These are the only two weak points of the company. However, the impact of these two elements can be significant in view of the high volatility of this stock and the fragility of the economic sector. So make sure you understand them and understand the issues before taking any position on this stock.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.
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