UPDATE 2-Aegon underlying earnings disappoint, shares fall
* Q3 underlying earnings 351 mln euros vs 437 mln expected
* Q3 net 145 mln euros vs average 108 mln in Reuters poll
* 154 mln euros tax gain reverses four quarters of losses
* Takes 43 mln euro UK provision for potential over-charges
* Shares down 3.6 pct, underperforming index
(Rewrites throughout, adds CFO, analyst comment, shares)
AMSTERDAM, Nov 12 (Reuters) - Third-quarter underlying earnings at Dutch insurer Aegon (AEGN.AS)(AEG.N) fell short of analysts' expectations after the company took an unexpected provision for British pension products, sending its shares down sharply on Thursday.
Aegon reported a 30 percent drop in underlying earnings to 351 million euros due to exceptional items, such as reducing its equity and credit market risks and the UK provision for potential over-charges.
Aegon shares touched a low of 5.05 euros and were down 3.6 percent at 5.28 euros by 0900 GMT, underperforming the DJ Stoxx European insurers index .SXIP, which was down 0.2 percent.
"It is not bad but there are small disappointments. Especially underlying profit fell short of expectations, which had run up after ING (ING.AS) results," said investment advisor Sijmen Plomp from Dresdner VPV. [ID:nLB95132]
Aegon, which has large operations in the U.S., where it owns TransAmerica, made a net profit of 145 million euros in the July-to-September period, reversing a year of quarterly losses. A tax gain of 154 million euros put Aegon back in the black.
Aegon took a 38 million pounds ($63 million) provision related to UK pension products to potentially compensate customers, Aegon's Chief Financial Officer Jan Nooitgedagt told reporters.
"For instance we have made incorrect charges to our customers and we are reviewing customer by customer these charges. We will pay back if we have charged too much to the individual customers," Nooitgedagt said.
He said he believed the provision would not be necessary for countries other than the UK.
Aegon, which competes with U.S. insurers Prudential (PRU.N) and MetLife (MET.N), said it has recently submitted a plan to the European Commission after getting a 3 billion euro Dutch state capital injection last year.
Nooitgedagt declined to say what the plan was or whether Aegon has made plans to divest business, saying: "We have full confidence our company is sound and that we have a viable case." (Reporting by Gilbert Kreijger, editing by Will Waterman and Andy Bruce)
