Aegon (AGN) Q1 2025 TU earnings summary

Executive summary

• Operating capital generation before holding and funding expenses rose 4% year-over-year to EUR 267 million, driven by business growth in strategic assets but partially offset by unfavorable mortality in the US.

• Strong commercial momentum in US Individual Life, WFG, UK Workplace, and International segments, with growth in WFG agents and new life sales.

• Capital ratios in main units remain above operating levels; group solvency ratio under Bermuda framework expected to be similar to current.

• Announced a new EUR 200 million share buyback program to commence July 2025, following the current EUR 150 million program.

• Financial targets for 2025 reaffirmed, with confidence in meeting objectives despite market volatility.

Financial highlights

• Operating capital generation before holding, funding, and operating expenses was EUR 267 million, a 4% increase year-over-year.

• Free cash flow for the period was EUR 34 million, including remissions from a joint venture and EUR 19 million from ASR's share buyback.

• Cash Capital at Holding stood at EUR 1.6 billion at March-end, above the top end of the operating range.

• Group financial leverage remained stable at EUR 5.1 billion.

• Earnings on in-force rose 12% to EUR 407 million, mainly from favorable markets and improved underwriting.

Outlook and guidance

• Expectation to achieve all group financial targets for 2025 as set out in the 2023 capital markets day, including operating capital generation around EUR 1.2 billion.

• Commitment to reduce Cash Capital at Holding to EUR 1 billion by end of 2026 remains firm.

• Share buybacks and special dividends, alongside investment in growth, are considered for capital deployment.