AEGON EXPECTS MODERATE RISE IN 1987 PROFITS Dutch insurer AEGON NV <AEGN.AS> reported a 6.4 pct increase in 1986 net profits to 327.1 mln guilders and said it expected a moderate increase in profits for 1987. Total revenue was eight pct lower in 1986 at 7.97 billion guilders vs 8.7 billion guilders in 1985. The company said its revenues were down due to lower foreign exchange rates and a change in accounting practice. It added that revenues would have risen by about seven pct had those changes not occurred. Revenue from Dutch operations rose five pct in 1986, mainly due to its life insurance business. Health insurance revenues in the Netherlands also rose despite a notable shift to insurances with lower premiums and higher personal risks. Damage insurances made losses, mainly due to car damage insurances. AEGON did not specify the loss. In the United States, revenue in guilders from health and life insurance was lower. AEGON said this was due to a change in accounting for U.S. Annuities. AEGON said annuities are subject to such strong personal investment influences that it should be accounted differently from the more traditional insurances. This change in accounting practice and another change to account for profits made on fixed interest investments, resulted in an incidental rise in net profits of 31 mln guilders. AEGON said incidental negative influences on net profits were slightly higher, being the lower dollar rate, high initial costs for new products, and the cost of new headquarters in The Hague. In 1986, a large number of new insurance products emerged in the Netherlands and the U.S., AEGON said. Large initial costs for these products have depressed net profits somewhat. Monumental Corp, a U.S. Insurer which merged with AEGON in May 1986, saw its profits almost completely eroded by these costs and made only a small contribution to the group's profits. AEGON said it has written-off 657 mln guilders in goodwill for Monumental Corp. AEGON's net equity was 2.71 billion guilders in December 1986, against 3.46 billion the year before.