Aegon (AGN) H1 2024 earnings summary

Executive summary

• Operating capital generation reached EUR 588 million and IFRS operating result was EUR 750 million, both down from 1H 2023 due to unfavorable mortality experience in the US Financial Assets segment.

• Net loss of EUR 65 million for H1 2024, as operating result was offset by fair value losses and assumption updates, mainly in the US.

• Strategic assets in the US, UK Workplace, and Brazil showed strong sales and net deposit growth, while China, Spain, and UK adviser platform underperformed.

• Asset management business saw a turnaround with nearly EUR 8 billion in third-party net deposits and AUM at EUR 318 billion.

• EUR 1.5 billion share buyback completed; new EUR 200 million buyback underway, with interim dividend increased to EUR 0.16 per share.

Financial highlights

• IFRS operating result for H1 2024 was EUR 750 million, down 8% year-over-year, mainly due to US mortality claims.

• Free cash flow amounted to EUR 373 million; cash capital at holding at EUR 2.1 billion, above the operating range.

• Group solvency ratio decreased by 3 percentage points to 190% since December 2023.

• Net loss for H1 2024 was EUR 65 million, improved from EUR 199 million loss in 1H23, driven by non-operating items and assumption/model updates.

• Shareholders’ equity per share decreased by EUR 0.25 to EUR 4.02, mainly due to capital returns.

Outlook and guidance

• On track to meet 2024 OCG guidance of EUR 1.1 billion and free cash flow guidance of over EUR 700 million.

• 2025 targets reaffirmed: OCG of EUR 1.2 billion, free cash flow of EUR 800 million, and dividend target of EUR 0.40 per share.

• Operating result run rate expected to increase to EUR 800-900 million per half year, reflecting assumption updates and business growth.