Aegon Ltd. · EURONEXT:AGN
Aegon — Q3 2023 Earnings Presentation
26 slides from Aegon's earnings presentation, Nov 16, 2023
Slide 1: 3Q 2023 Trading Update
3Q 2023 Trading Update Lard Friese Matt Rider Chief Executive Officer Chief Financial Officer November 16, 2023
Slide 2: Continuing the execution of Aegon's strategy
Continuing the execution of Aegon’s strategy ▪ In 3Q 2023, operating capital generation1 up ▪ Closed transaction with a.s.r. and initiated ▪ Shareholders approved the move of 16% to EUR 354 million partnership with Aegon Asset Management Aegon’s legal seat to Bermuda ▪ Delivering attractive growth,
Slide 3: Expanding distribution at WFG
Expanding distribution at WFG US – World Financial Group (WFG) Transamerica’s market Licensed agents Multi-ticket agents share in WFG1 (number in thousand) (number in thousand) (in %) ▪ Continued growth of number of licensed 69 36 64% 65% agents in line with plan 59 31 ▪ Improved productivity reflec
Slide 4: Driving significant growth in US Individual Life
Driving significant growth in US Individual Life US – Individual Life (in USD million) New life sales New business strain Earnings on in-force1 ▪ Grew new life sales and associated new 118 82 192 business strain, mainly from indexed 108 76 universal life with an IRR above 12% 154 ▪ 71% of new Indivi
Slide 5: Building leadership positions in attractive Retirement segments
Building leadership positions in attractive Retirement segments US – Retirement Plans (in USD) ▪ Strong written sales in current and prior periods Written sales Net deposits GA Stable IRA Earnings on are expected to increase mid-sized plans mid-sized plans Value AuA1 AuA1 in-force2 gross deposits in
Slide 6: Net outflows in UK Workplace from loss of a large client, and a challenging environment for Retail
Net outflows in UK Workplace from loss of a large client, and a challenging environment for Retail UK (in GBP million) Workplace Retail Revenues gained / net deposits net deposits (lost) on net deposits (annualized) ▪ In Workplace, continued good momentum in winning of new schemes, with negative dep
Slide 7: Steady progress in growth markets
Steady progress in growth markets Growth markets (in EUR million, International segment) New life sales1 P&C and A&H new Operating capital premium production generation2 ▪ Almost doubled new life sales in Brazil partly offset by lower sales in China from new regulations and by the impact 73 27 33 of
Slide 8: Challenging environment for Asset Management
Challenging environment for Asset Management Aegon Asset Management (in EUR million) 3rd-party net deposits Net deposits Operating capital Global Platforms Strategic Partnerships generation ▪ Overall net outflows in 3rd-party business on the Global platform from 1,516 25 outflows of two large client
Slide 9: Strategic initiatives increase AuM and revenue at Aegon Asset Management
Strategic initiatives increase AuM and revenue at Aegon Asset Management Development of assets under management (AuM) in 3Q 2023 (in EUR billion) 4.4 16.2 (2.4) ▪ Net transfers from the a.s.r. and LBP AM transactions offset net outflows and 295.3 other movements in 3Q 2023 293.1 (6.5) ▪ Initiatives
Slide 10: 3Q 2023 Trading Update
3Q 2023 Trading Update Matt Rider Chief Financial Officer
Slide 11: 3Q 2023 trading update
3Q 2023 trading update (in EUR million) Operating capital Free cash Cash Capital Gross generation1 flow at Holding financial leverage 354 79 2,897 5,642 +16% vs. 3Q 2022 +12 vs. 3Q 2022 +1,582 vs. 1H 2023 +56 vs. 1H 2023 11 1. Before holding funding and operating expenses
Slide 12: Capital positions of main units remain above operating levels
Capital positions of main units remain above operating levels US UK RBC ratio1 Solvency II ratio2 427% 422% 166% 167% 1H 2023 3Q 2023 1H 2023 3Q 2023 ▪ Favorable operating capital generation ▪ Positive contribution from operating capital ▪ Market movements had a negative impact generation driven by
Slide 13: Higher operating capital generation reflects business growth
Higher operating capital generation reflects business growth Operating capital generation (before holding funding and operating expense, 3Q 2023, in EUR million) 388 171 354 ▪ Higher earnings on in-force driven by business growth in the US Strategic 236 Americas Assets and previous management action
Slide 14: Creating value from US Financial Assets
Creating value from US Financial Assets Capital employed Operational capital generation in Financial Assets (at 400% RBC ratio, 3Q 2023, in USD billion) 4.1 ▪ Increased USD 82 million vs. 3Q 2022 from improved mortality claims experience and management actions, partly offset by outflows Operating ca
Slide 15: Reducing mortality risk by purchasing institutionally owned universal life policies
Reducing mortality risk by successfully purchasing institutionally owned universal life policies Established funding ▪ As of 3Q 2023, entity established to purchase policies ▪ Funded with USD 700 million using capital generated from Financial Assets and other internal financing2 Purchase policies fr
Slide 16: Cash Capital at Holding boosted by proceeds from sale of Aegon the Netherlands
Cash Capital at Holding boosted by proceeds from sale of Aegon the Netherlands Cash Capital at Holding1 (in EUR million) 2,201 2,897 (699) ▪ Free cash flow driven by interim dividend from Aegon’s share in a.s.r. ▪ Proceeds from completion of the transaction with a.s.r. boosted cash capital 1,315 79
Slide 17: Financial targets for 2025
Reduce gross financial leverage Around EUR 5.0 billion Increase operating capital generation1 Around EUR 1.2 billion Financial targets for 20252 Grow free cash flows Around EUR 800 million Increase dividend to shareholders Around EUR 0.40 per share 1. Before holding and funding expenses 17 2. Barrin
Slide 18: Concluding remarks
Concluding remarks Lard Friese Chief Executive Officer
Slide 19: Continuing the execution of Aegon's strategy
Continuing the execution of Aegon’s strategy ▪ In 3Q 2023, operating capital generation1 up ▪ Closed transaction with a.s.r. and initiated ▪ Shareholders approved the move of 16% to EUR 354 million partnership with Aegon Asset Management Aegon’s legal seat to Bermuda ▪ Delivering attractive growth,
Slide 20: Appendix
Appendix
Slide 21: Key capital sensitivities and assumptions
Key capital sensitivities and assumptions Capital sensitivities1 Scenario UK Solvency II US RBC (in percentage points, Equity markets +25% -6% +13% 3Q 2023) Equity markets -25% +11% -34% Interest rates +50 bps 0% 0% Interest rates -50 bps 0% +1% Government spreads +50 bps -2% n/a Government spreads
Slide 22: Investing in Aegon
Investing in Aegon Aegon’s New York Aegon NYRS Aegon’s ordinary shares Registry Shares (NYRS) contact details ▪ Traded on Euronext Amsterdam since ▪ Traded on NYSE since 1991 and quoted in 1969 and quoted in euros US dollars ▪ One Aegon NYRS equals one Aegon Amsterdam-listed common share ▪ Cost effe
Slide 23: Aegon Investor Relations
Aegon Investor Relations Contact Investor Relations Yves Cormier, Head of Investor Relations +44 782 337 1511 Karl-Otto Grosse-Holz, Investor Relations Officer +31 70 344 7857 Hielke Hielkema, Investor Relations Officer +31 70 344 7697 Jan-Willem Stokhuijzen, Investor Relations Officer +31 70 344 83
Slide 24: Disclaimer (1/2)
Disclaimer (1/2) Currency exchange rates ▪ The effect of applicable Bermuda solvency requirements, the European Union’s Solvency II requirements, and applicable This document contains certain information about Aegon’s results, financial condition and revenue generating investments equivalent solvenc
Slide 25: Disclaimer (2/2)
Disclaimer (2/2) ▪ Consequences of an actual or potential break-up of the European Monetary Union in whole or in part, or the exit of the World Financial Group (WFG) United Kingdom from the European Union and potential consequences if other European Union countries leave the WFG consists of: Europea
Slide 26: W aegon
W aegon