Aegon reports Q1’24 operating capital of €256m

Life insurer and asset manager Aegon, in its trading update for Q1 2024, has reported a €256 million operating capital generation before holding funding and operating expenses. The firm added that with this growth it is on track to achieve guidance of around €1.1 billion for 2024.

Capital ratios remain robust, above their respective operating levels, along with cash capital at holding strongly reported at €2 billion, reflecting 85% completion of the ongoing €1.535 billion share buyback program completed by Q1 2024, expected to be executed by the end of H1 2024 fully.

The buyback amount was subsequently increased to €1.535 billion in the context of repurchasing shares related to share-based compensation plans. The firm has planned a new €200 million share buyback program , expected to be completed by the end of 2024.

There was continued strong sales growth in US Strategic Assets, UK Workplace, and Brazilian life insurance businesses and positive third-party net flows at the asset management business. Although the UK Retail business continues to be affected by challenging market conditions

Lard Friese, Chief Executive Officer, Aegon, commented: “The beginning of the year was marked by continued positive commercial momentum in the US and Brazil, as well as net inflows at our asset manager, and was underscored by solid operating capital generation of EUR 256 million, as well as healthy capital ratios in our main operating units.

“In the US, we continued to execute upon our strategy to transform Transamerica into America’s leading middle market life insurance and retirement company. Individual Life generated new life sales of USD 119 million, an increase of 5% compared with the same period in 2023. World Financial Group’s (WFG) sales force grew by 13% to almost 76,000 licensed agents, driven by continued successful recruiting and training efforts. Retirement Plans reported net deposits of USD 1.0 billion, driven by the middle market.

“We also continued to execute the management actions we announced last year to reduce our exposure to Financial Assets, including the repurchase of institutionally owned universal life policies and the premium rate increase program in long-term care. Our joint venture in Brazil, Mongeral Aegon Group, continued its strong performance, with life sales increasing by 22% to EUR 28 million. Our UK Workplace segment saw continued high levels of inflows due to the onboarding of new schemes and net deposits from existing participants, despite being negatively impacted by the loss of a low margin scheme.

“Performance at the UK’s Retail segment continued to be impacted by reduced customer activity due to the current macro-economic environment, as well as an industry-wide reduction of transfers from defined benefit to defined contribution pension schemes. In our asset management business, both Global Platforms and Strategic Partnerships saw net inflows. Global Platforms third party reported net inflows of EUR 2.6 billion, mostly driven by fixed income in the UK.

“Strategic Partnerships saw net inflows of EUR 2.1 billion, driven by Aegon’s Chinese asset management joint venture. Today, we announce a planned new share buyback program of EUR 200 million. We expect the new program to start at the beginning of July 2024, and to complete it by the end of 2024. These results represent a good start to the year as we continue to work hard to transform our company and deliver upon our 2025 financial targets. I look forward to providing you with an update on our plans to drive growth in our UK business at our teach-in on June 25.”

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