Slide 1: 1H 2024 Results
1H 2024 Results Lard Friese Matt Rider Chief Executive Officer Chief Financial Officer August 22, 2024
Slide 2: Key messages
Key messages ▪ EUR 588 million operating capital generation1 and EUR 750 million IFRS operating result, both lower compared with 1H 2023 reflecting unfavorable mortality experience in the US mostly related to Financial Assets ▪ Continued strong sales growth across most businesses, namely in US Strat
Slide 3: Transforming Transamerica into America's leading middle market life insurance and retirement company
Transforming Transamerica into America’s leading middle market life insurance and retirement company Americas Distribution Savings & Investments Protection Solutions WFG licensed agents Net deposits mid-sized plans New life sales (number in thousand) (in USD billion) (in USD million) ▪ Building dist
Slide 4: Rising platform assets under administration in the UK, supported by continued inflows on the Workplace platform
Rising platform assets under administration in the UK, supported by continued inflows on the Workplace platform UK Workplace platform Adviser platform Platform assets under net deposits net deposits administration (in GBP million) (in GBP million) (in GBP billion) ▪ Maintaining strong momentum in th
Slide 5: New business volumes adversely impacted by new pricing regulations in China, and lower mortgage-linked sales in Spain
New business volumes adversely impacted by new pricing regulations in China, and lower mortgage-linked sales in Spain International (in EUR million) New life sales P&C and A&H new premium Operating capital generation production ▪ Higher new life sales in Brazil 175 reflecting continued growth and th
Slide 6: Strong third-party net deposits in Asset Management
Strong third-party net deposits in Asset Management Aegon Asset Management (in EUR billion) 3rd-party net deposits Net deposits Assets under management Global Platforms Strategic Partnerships ▪ Very strong net deposits in Global Platforms third-party business 5.1 318 mainly from fixed income assets
Slide 7: 1H 2024 Financial Results
1H 2024 Financial Results Matt Rider Chief Financial Officer
Slide 8: 1H 2024 financial results
1H 2024 financial results (in EUR million) IFRS Operating Free cash Cash Capital Gross Group operating capital flow at Holding financial solvency result generation1 leverage ratio 750 588 373 2,090 5,122 190% -8% -5% +30% (297) +58 -3%-pts compared with 1H 2023 compared with 2H 2023 8 1. Excluding h
Slide 9: IFRS operating result decreased due to unfavorable claims experience in the Americas
IFRS operating result decreased due to unfavorable claims experience in the Americas IFRS operating result Change vs. (1H 2024, in EUR million) 1H 2023 in local currency Americas ▪ Lower result in Financial Assets due to lower net investment Americas 550 -12% result and unfavorable claims experience
Slide 10: Business growth drove higher result in Strategic Assets, more than offset by unfavorable result in Financial Assets
Business growth drove higher result in Strategic Assets, more than offset by unfavorable result in Financial Assets Americas IFRS operating result (1H 2024, in USD million) Strategic Assets ▪ Higher investment income mainly from business growth and 679 higher book yields 594 ▪ Increased CSM and Risk
Slide 11: IFRS net loss driven by valuation updates of alternative investments, and assumption updates in the Americas
IFRS net loss driven by valuation updates of alternative investments, and assumption updates in the Americas Net result Non-operating items (1H 2024, in EUR million) ▪ Fair value losses driven by unfavorable valuation updates of alternative investments in the Americas and revaluation of Operating re
Slide 12: Shareholders' equity decreased EUR 1 billion due to capital returned to shareholders
Shareholders’ equity decreased EUR 1 billion due to capital returned to shareholders Shareholders’ equity Shareholders’ equity per share (in EUR million) Shareholders’ equity ▪ Realized losses and impairments on fixed 7,475 EUR 4.27 at December 31, 2023 income investments within the net result Net r
Slide 13: EUR 0.5 billion increase of CSM from growth in US Protection Solutions and UK
EUR 0.5 billion increase of CSM from growth in US Protection Solutions and UK CSM roll forward CSM after est. tax per share (in EUR million) CSM end of 2H 2023 8,251 EUR 3.65 ▪ In line with our strategy, US Protection Solutions CSM increased mainly due to new US Protection Solutions 393 business whi
Slide 14: CSM development reflecting strategy to grow Strategic Assets and shrink Financial Assets
CSM development reflecting strategy to grow Strategic Assets and shrink Financial Assets (in USD million) US Protection Solutions CSM roll-forward US Financial Assets CSM roll-forward CSM end of 2H 2023 2,803 4,322 New business 237 23 CSM release (141) (272) Accretion of interest 47 74 Experience va
Slide 15: EUR 588 million operating capital generation; on track to meet 2024 guidance
EUR 588 million operating capital generation; on track to meet the guidance of around EUR 1.1 billion for 2024 Operating capital generation before holding funding and operating expenses (in EUR million) -5% 620 620 ▪ Earnings on in-force reflected 588 588 unfavorable underwriting 37 experience prima
Slide 16: Operating capital generation in the Americas decreased due to higher new business strain and unfavorable claims experience
Operating capital generation in the Americas decreased due to higher new business strain and unfavorable claims experience Americas (in USD million) ▪ Growth in Strategic Assets Earnings on In-Force Operating Capital Generation earnings on in-force from business growth in prior periods and -19% favo
Slide 17: Capital positions of main units remained above operating levels
Capital positions of main units remained above operating levels US RBC ratio1 446% ▪ Market movements had a 11%-pts positive impact due to favorable at the end of equity markets, higher interest rates, and recoveries of impaired credit 1H 2024 ▪ 5%-pts net favorable impact from actuarial assumption
Slide 18: Executing the US Financial Assets strategy
Executing the US Financial Assets strategy Americas – Financial Assets (in USD million, %) Capital employed Variable Annuities Fixed Annuities (at target operating level) Net deposits1 Hedge effectiveness Net deposits1 4,083 2027 98% 99% 3,462 target: 2,200 -7,4% -9,3% -10,7% -11,0% 2022 1H24 1H23 1
Slide 19: Cash Capital at Holding remained above the operating range
Cash Capital at Holding remained above the operating range Cash Capital at Holding (in EUR million) ▪ Free cash flow reflects remittances from all 373 units incl. the final 2023 dividend from a.s.r. 2,387 ▪ EUR 686 million cash outflow from completion of EUR 1.5 billion share buyback 16 2,090 progra
Slide 20: Financial targets for 2025
Reduce gross financial leverage Around EUR 5.0 billion Increase operating capital generation2 Around EUR 1.2 billion Financial targets for 20251 Grow free cash flows Around EUR 800 million Increase dividend to shareholders Around EUR 0.40 per share 1. Barring unforeseen circumstances, and dividend s
Slide 21: Concluding remarks
Concluding remarks Lard Friese Chief Executive Officer
Slide 22: Key messages
Key messages ▪ EUR 588 million operating capital generation1 and EUR 750 million IFRS operating result, both lower compared with 1H 2023 reflecting unfavorable mortality experience in the US mostly related to Financial Assets ▪ Continued strong sales growth across most businesses, namely in US Strat
Slide 23: Appendix
Appendix
Slide 24: Group solvency ratio amounts to 190% and includes the contribution from Aegon's stake in a.s.r.
Group solvency ratio amounts to 190% and includes the contribution from Aegon’s stake in a.s.r. Group solvency position (1H 2024, in EUR million) Contribution of Other units, US RBC US Solvency II UK SE Aegon’s stake diversification, (in USD million) equivalent Solvency II in a.s.r.3 and elimination
Slide 25: Key capital sensitivities and assumptions
Key capital sensitivities and assumptions Capital sensitivities1 UK SE US Solvency II Scenario US RBC (1H 2024 , in percentage Solvency II equivalent points) Equity markets +25% -4% -10% -17% Equity markets +10% -2% +2% +5% Equity markets -10% +2% -6% -11% Equity markets -25% +7% -15% -28% Interest
Slide 26: Key IFRS 17 sensitivities
Key IFRS 17 sensitivities IFRS sensitivities (Balances per June 30, 2024) CSM (pre-tax) Shareholders’ equity Americas UK Americas UK Scenario (in USD million) (in GBP million) (in USD million) (in GBP million) Balance at end of period 7,251 1,477 3,362 1,198 Equity markets +25% 459 388 264 (5) Equit
Slide 27: Investing in Aegon
Investing in Aegon Aegon’s ordinary shares Aegon’s New York Registry Shares (NYRS) ▪ Traded on Euronext ▪ Traded on NYSE since 1991 and Amsterdam since quoted in US dollars 1969 and quoted in ▪ One Aegon NYRS equals one Aegon euros Amsterdam-listed common share ▪ Cost effective way to hold internati
Slide 28: 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 29: 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 30: 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 further This document contains information that qualifies, or may qualify, as inside information within the meaning of Article 7(1) of the EU consequences of the exit of the Unit
Slide 31: Y aegon
Y aegon