Aegon Well-Positioned in Life Insrc

Aegon N.V. (AEG - Analyst Report) provides a multitude of insurance and pension-based saving and investment solutions. It is one of the world's ten largest life insurance companies ranked by assets, profits and market capitalization. We are maintaining our Buy recommendation on Aegon after its second quarter results.

As Aegon is focusing mostly on life insurance, its position in the market is more favorable compared to non-life insurance companies as mentioned above. The company has also further strengthened its distribution channel in Spain and is entering new growth areas such as Mexico and India and China.

The stock has declined significantly along with the recent market sell-off. At current multiple of 6.0x our current 2008 EPS and 1.1x Book, the stock is trading at a multiple substantially below the average of that of its peers. As such, fundamentally we think that there will be potential gain for stock in the near term. Our six-month target price is $17.00. Full-year dividend has been increased by 13 percent.

Read the full analyst report on AEG