Aegon (AGN) Q3 2024 TU earnings summary

Executive summary

• Operating capital generation for Q3 2024 was EUR 336 million, with full-year guidance raised to EUR 1.2 billion from EUR 1.1 billion, mainly driven by U.S. businesses and strong UK Workplace and Asset Management performance.

• Commercial volatility persisted, with lower new life sales and net outflows in U.S. retirement plans, and net outflows in the UK Adviser Platform.

• A new EUR 150 million share buyback program was announced, to begin in January 2025, following the near-completion of a EUR 200 million buyback.

• Cash Capital at Holding stood at EUR 1.5 billion after returning over EUR 650 million to shareholders in Q3, with a target to reach EUR 1.0 billion by end-2026.

• The company remains focused on reducing exposure to financial assets and transforming its business mix.

Financial highlights

• Operating capital generation before holding, funding, and expenses was EUR 336 million, down 5% year-on-year.

• Free cash flow for the period was EUR 80 million, mainly from interim dividend from a.s.r.

• Gross financial leverage remained at EUR 5 billion, in line with targets.

• Earnings on in-force increased 10% to EUR 425 million; new business strain decreased by EUR 25 million.

• Cash Capital at Holding decreased from EUR 2,090 million to EUR 1,484 million in Q3, mainly due to capital returns to shareholders.

Outlook and guidance

• Full-year 2024 operating capital generation guidance raised to EUR 1.2 billion, with 2025 target unchanged at EUR 1.2 billion.

• Free cash flow guidance for 2024 is over EUR 700 million, with a 2025 target of EUR 800 million.

• Dividend growth target reaffirmed at EUR 0.40 per share for 2025.

• Cash Capital at Holding to be managed down to EUR 1 billion by end of 2026.

• New EUR 150 million share buyback program to start January 2025, expected to conclude in 1H 2025.