Aegon reviews web loss for first half of 2024

Aegon has reported its outcomes for the primary half of 2024, displaying a web lack of €65 million.

The corporate’s working outcome decreased by 8% in comparison with the primary half of 2023, amounting to €750 million, primarily as a consequence of unfavorable mortality expertise associated to US monetary property and the influence of assumption updates.

Shareholders’ fairness per share declined by 6% in comparison with December 31, 2023, to €4.02, whereas the Contractual Service Margin (CSM) per share, after estimated tax adjustment, elevated by 14% to €4.17.

By way of capital administration, Aegon’s working capital technology earlier than holding funding and working bills dropped by 5% to €588 million, reflecting the difficult mortality expertise within the US.

Web loss apart, the corporate mentioned that it stays on observe to fulfill its 2024 steerage. Capital ratios for Aegon’s primary models have elevated and proceed to remain above their respective working ranges.

Money capital on the holding degree remained above the working vary at €2.1 billion. Aegon accomplished a €1.535 billion share buyback program in June 2024 and initiated a brand new €200 million share buyback program in July, anticipated to be accomplished within the second half of 2024.

Free money circulation stood at €373 million, which incorporates the 2023 ultimate dividend from a.s.r. The 2024 interim dividend has been set at €0.16 per frequent share, a rise of €0.02 in comparison with the 2023 interim dividend.

Aegon CEO Lard Friese highlighted the corporate’s progress in executing its technique to place itself as a number one supplier of funding, safety, and retirement options. This progress was mirrored in continued robust gross sales development throughout Aegon’s US strategic property, additional growth of its UK office platform, development in Brazil, and powerful web deposits in its asset administration enterprise.

Friese additionally famous a discount in capital employed by US monetary property, with a lower of $0.4 billion, conserving the corporate on observe to cut back this to €2.2 billion by the top of 2027.

Whereas the unfavorable mortality expertise within the US negatively impacted each IFRS outcomes and working capital technology, Friese mentioned that the corporate stays on observe to fulfill its working capital technology steerage of €1.1 billion for 2024. The corporate expects that the belief updates will assist scale back IFRS claims expertise variances and enhance working outcomes.

Capital ratios for Aegon’s US and UK enterprise models elevated to 446% and 189%, respectively, and the holding money place remained above the working vary at €2.1 billion.

How did Aegon fare within the US and different markets?

Within the US, Transamerica noticed a 5% enhance in Particular person Life new gross sales, reaching $245 million. World Monetary Group’s gross sales drive grew by 13% to almost 79,000 licensed brokers. Web deposits for mid-sized retirement plans elevated to $1.2 billion, contributing to a 12% rise in US Strategic Property CSM.

Within the UK, Aegon’s office platform noticed web deposits enhance to £1.7 billion because of the continued onboarding of latest schemes and better web deposits on present schemes. Nevertheless, the Adviser platform skilled web outflows of £1.8 billion, reflecting decreased buyer exercise because of the macroeconomic atmosphere and consolidation in non-target adviser segments.

Aegon’s international asset administration enterprise reported robust industrial outcomes, with third-party web deposits in World Platforms and Strategic Partnerships totaling practically €8 billion, reversing outflows seen within the earlier 12 months.

In Brazil, Mongeral Aegon Group, Aegon’s three way partnership, continued to develop with life gross sales growing by 9% to €64 million, pushed by Aegon’s elevated financial stake and ongoing enterprise development in each group and particular person merchandise.

These outcomes have supplied a basis for Aegon to lift its interim dividend to 16 eurocents per share, a rise of two eurocents from the 2023 interim dividend. The corporate additionally accomplished a €1.535 billion share buyback associated to the transaction with a.s.r. and commenced a brand new €200 million share buyback within the final quarter.

“I’m grateful to the groups for what they’ve achieved in the course of the first half of the 12 months, and we’ll work to construct on that momentum within the second half as we proceed the execution of our technique,” Friese mentioned.

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