IFRS results

Net loss of EUR 65 million with operating result more than offset by fair value losses in the US and the impact of assumption updates
Operating result decreases by 8% compared with the first half of 2023 to EUR 750 million, reflecting unfavorable mortality experience mainly related to US Financial Assets
Shareholders’ equity per share decreases by 6% compared with December 31, 2023 to EUR 4.02, while CSM per share after estimated tax adjustment increases by 14% to EUR 4.17

Capital generation, cash and capital management

Operating capital generation before holding funding and operating expenses decreases by 5% compared with the first half of 2023 to EUR 588 million reflecting unfavorable mortality experience in the US, and is on track to meet 2024 guidance
Capital ratios of main units increase, remaining above their respective operating levels
Cash Capital at Holding remains above the operating range at EUR 2.1 billion. EUR 1.535 billion share buyback program completed in June 2024. New EUR 200 million share buyback program started in July; expected to be completed in the second half of 2024
Free Cash Flow of EUR 373 million, which includes 2023 final dividend from a.s.r.
2024 interim dividend of EUR 0.16 per common share, an increase of EUR 0.02 compared with 2023 interim dividend
Lard Friese, Aegon CEO, commented:


“In the first half of 2024 we made solid progress to deliver on our strategy to create leading providers of investment, protection, and retirement solutions. This was evidenced by continued strong sales growth across all our US Strategic Assets, further growth in our UK Workplace platform and the business in Brazil, and strong third-party net deposits in our asset management business. Consistent with our strategy to reduce capital employed by US Financial Assets, we saw our capital employed fall by USD 0.4 billion, and we are on track to reduce it to EUR 2.2 billion by the end of 2027.


While unfavorable mortality experience in our US Financial Assets negatively impacted both IFRS results and operating capital generation in the first half, we remain on track to meet our EUR 1.1 billion OCG guidance for 2024. Going forward, we expect the assumption updates to reduce IFRS claims experience variances and lead to an increase in our operating result. Capital ratios of our business units in the US and UK increased to 446% and 189% respectively, and our holding cash position at the half year remained above the operating range at EUR 2.1 billion.


In the US, Transamerica continued to perform well. Individual Life new life sales increased to USD?245?million, up 5% compared with the prior year period. World Financial Group’s (WFG) sales force grew by 13% to almost 79,000 licensed agents, as a result of continued successful recruiting and training efforts. Net deposits for mid-sized retirement plans increased to USD 1.2 billion. This business growth also translated into an increase of US Strategic Assets CSM by 12%.


In June, we outlined our plans to accelerate Aegon UK’s transformation into a leading digital savings and retirement platform. Moving to Aegon UK’s performance in the first half, net deposits at the Workplace platform increased to GBP 1.7 billion, due to the continued onboarding of new schemes and higher net deposits on existing schemes. The Adviser platform saw net outflows increase to GBP 1.8 billion, reflecting a continued reduction of customer activity due to the macroeconomic environment in the UK, and consolidation and vertical integration in non-target adviser segments.


Commercial results at our global asset manager were very strong, with third-party net deposits in Global Platforms and net deposits in Strategic Partnerships combined totaling almost EUR 8 billion, in contrast with the outflows experienced during the prior year period.


Mongeral Aegon Group, our Brazilian joint venture, continued to grow with life sales up 9% to EUR 64 million, reflecting the impact of Aegon’s increased economic stake and continued business growth in both group and individual products.


This set of results provides a solid basis to raise the interim dividend to 16 eurocents per share, up 2 eurocents compared with the 2023 interim dividend. Aegon completed the EUR 1.535 billion share buyback mainly related to the transaction to combine Aegon the Netherlands with a.s.r., and has begun the new EUR 200 million share buyback announced last quarter.


I am grateful to the teams for what they have achieved during the first half of the year, and we will work to build on that momentum in the second half as we continue the execution of our strategy.”

Strategy

Aegon is an international financial services holding company. Aegon’s ambition is to build leading businesses that offer their customers investment, protection, and retirement solutions. Aegon’s portfolio of businesses includes fully owned businesses in the United States and United Kingdom, and a global asset manager. Aegon also creates value by combining its international expertise with strong local partners via insurance joint ventures in Spain & Portugal, China, and Brazil, and via asset management partnerships in France and China. In addition, Aegon owns a Bermuda-based life insurer and generates value via a strategic shareholding in a market leading Dutch insurance and pensions company. Aegon is taking significant steps to improve its performance and to create sustainable value for all of its stakeholders.


Aegon’s businesses in the US have been divided into Financial Assets and Strategic Assets. The aim is to reduce Aegon’s exposure to Financial Assets and improve the predictability of capital generation from these assets. Aegon intends to, over time, reallocate capital from Financial Assets to growth opportunities in Strategic Assets, partnerships, and the global asset manager. Exposure to businesses outside of Aegon’s core focus has been largely eliminated over recent years, most recently with the divestment of the business in India, which was completed on February 23, 2024.


Throughout its transformation, Aegon aims to maintain a solid capital position in its business units and at the Holding. Through proactive risk management actions, Aegon is improving its risk profile and reducing the volatility of its capital ratios. This is underscored by Aegon’s capital strength.


The next chapter in Aegon’s strategy is expected to lead to operating capital generation from its units of around EUR 1.2 billion, and of free cash flow of around EUR 800 million by 2025. Aegon aims to grow its dividend per share to around EUR 0.40 over 2025, barring unforeseen circumstances and subject to the necessary approvals. Gross financial leverage is expected to remain at around EUR 5 billion.


Transaction with a.s.r.

On July 4, 2023, Aegon announced the completion of the combination of its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r., and the beginning of its asset management partnership with a.s.r. As part of the transaction, Aegon received EUR 2.2 billion in cash proceeds and a 29.99% strategic shareholding in a.s.r. The EUR 1.535 billion share buyback program mainly associated with this transaction was completed on June 28, 2024.


2024 UK webinar

On June 25, 2024, Aegon hosted a webinar to present its plans to accelerate the transformation of Aegon UK into a leading digital savings and retirement platform. The webinar focused on the interconnected business model of Aegon UK with three growth franchises: the Workplace platform, the Adviser platform (formerly known as Retail), and the Advice franchise.

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Please note that all comparisons are versus the first half of 2023 unless stated otherwise.

see & read more on
https://www.aegon.com/newsroom/news/press-releases/2024/pr-1h-2024