Dutch diversified insurer Aegon has reported underlying earnings of €514m for the second quarter of 2014, up by 7% compared to €481m during the corresponding period last fiscal.

The Netherlands-based underwriter attributed the increased profit to improved growth, better operational performance and higher equity markets; partly offset by unfavorable mortality experience and exchange rate movements.

For the quarter period ended on 30 June 2014, its net income rose by 43% to €343m, compared to €240m during the comparable period a year ago.

Aegon’s total sales were increased by 5% to €2.1bn from €2bn compared to the same period earlier year.

Commenting on the financial performance of the company, Aegon CEO Alex Wynaendts said: "We are pleased with the strong results that Aegon has delivered, as we build on the positive momentum achieved in previous quarters.

"We are continuing to offer innovative new products to our customers and expand our distribution – indeed we will soon be extending our successful partnership in Spain with Banco Santander to Portugal.

"Ever more customers are choosing Aegon, and placing their trust in our products and services to secure their financial future. As a result, our revenue-generating investments now exceed EUR 500 billion for the first time in the company’s history."

The Hague-based insurer said it will acquire a 51% equity stake in Banco Santander Totta’s insurance business in Portugal, expanding a partnership with the Spanish bank that started in 2013.