Aegon reports first half year 2024 results
The Hague, August 22, 2024 - Please click here to access
all 1H 2024 results related documents.
IFRS results
- Net loss of EUR 65 million with operating result more than
offset by fair value losses in the US and the impact of assumption
updates
- Operating result decreases by 8% compared with the first half
of 2023 to EUR 750 million, reflecting unfavorable mortality
experience mainly related to US Financial Assets
- Shareholders’ equity per share decreases by 6% compared with
December 31, 2023 to EUR 4.02, while CSM per share after estimated
tax adjustment increases by 14% to EUR 4.17
Capital generation, cash and capital
management
- Operating capital generation before holding funding and
operating expenses decreases by 5% compared with the first half of
2023 to EUR 588 million reflecting unfavorable mortality experience
in the US, and is on track to meet 2024 guidance
- Capital ratios of main units increase, remaining above their
respective operating levels
- Cash Capital at Holding remains above the operating range at
EUR 2.1 billion. EUR 1.535 billion share buyback program completed
in June 2024. New EUR 200 million share buyback program
started in July; expected to be completed in the second half of
2024
- Free Cash Flow of EUR 373 million, which includes 2023 final
dividend from a.s.r.
- 2024 interim dividend of EUR 0.16 per common share, an increase
of EUR 0.02 compared with 2023 interim dividend
Lard Friese, Aegon CEO, commented:
“In the first half of 2024 we made solid progress to deliver
on our strategy to create leading providers of investment,
protection, and retirement solutions. This was evidenced by
continued strong sales growth across all our US Strategic Assets,
further growth in our UK Workplace platform and the business in
Brazil, and strong third-party net deposits in our asset management
business. Consistent with our strategy to reduce capital employed
by US Financial Assets, we saw our capital employed fall by USD 0.4
billion, and we are on track to reduce it to EUR 2.2 billion by the
end of 2027.
While unfavorable mortality experience in our US Financial
Assets negatively impacted both IFRS results and operating capital
generation in the first half, we remain on track to meet our EUR
1.1 billion OCG guidance for 2024. Going forward, we expect the
assumption updates to reduce IFRS claims experience variances and
lead to an increase in our operating result. Capital ratios of our
business units in the US and UK increased to 446% and 189%
respectively, and our holding cash position at the half year
remained above the operating range at EUR 2.1 billion.
In the US, Transamerica continued to perform well.
Individual Life new life sales increased to USD 245 million, up 5%
compared with the prior year period. World Financial Group’s (WFG)
sales force grew by 13% to almost 79,000 licensed agents, as a
result of continued successful recruiting and training efforts. Net
deposits for mid-sized retirement plans increased to USD 1.2
billion. This business growth also translated into an increase of
US Strategic Assets CSM by 12%.
In June, we outlined our plans to accelerate Aegon UK’s
transformation into a leading digital savings and retirement
platform. Moving to Aegon UK’s performance in the first half, net
deposits at the Workplace platform increased to
GBP 1.7 billion, due to the continued onboarding of new
schemes and higher net deposits on existing schemes.
The Adviser platform saw net outflows increase to GBP 1.8
billion, reflecting a continued reduction of customer activity due
to the macroeconomic environment in the UK, and consolidation and
vertical integration in non-target adviser segments.
Commercial results at our global asset manager were very
strong, with third-party net deposits in Global Platforms and net
deposits in Strategic Partnerships combined totaling almost EUR 8
billion, in contrast with the outflows experienced during the prior
year period.
Mongeral Aegon Group, our Brazilian joint venture, continued
to grow with life sales up 9% to EUR 64 million, reflecting the
impact of Aegon’s increased economic stake and continued business
growth in both group and individual products.
This set of results provides a solid basis to raise the
interim dividend to 16 eurocents per share, up 2 eurocents compared
with the 2023 interim dividend. Aegon completed the EUR 1.535
billion share buyback mainly related to the transaction to
combine Aegon the Netherlands with a.s.r., and has begun the new
EUR 200 million share buyback announced last quarter.
I am grateful to the teams for what they have achieved
during the first half of the year, and we will work to build on
that momentum in the second half as we continue the execution of
our strategy.”
Contacts
Media
relations |
Investor
relations |
Richard
Mackillican |
Yves Cormier |
+31(0) 6
27411546 |
+31(0) 70 344
8028 |
richard.mackillican@aegon.com |
yves.cormier@aegon.com |
|
|
Additional information
Presentation
The conference call presentation is available on aegon.com as of
7.00 am CEST.
Supplements
Aegon’s first half 2024 Financial Supplement and other
supplementary documents are available on aegon.com.
Webcast and conference call including
Q&A
The webcast and conference call starts at 9:00 am CEST. The audio
webcast can be followed on aegon.com. To join the conference call
and/or participate in the Q&A, you will need to register via
the following registration link. Directly after registration you
will see your personal pin on the confirmation screen, and you will
also receive an email with the call details and your personal pin
to enter the conference call. The link becomes active 15 minutes
prior to the scheduled start time. To avoid any unforeseen
connection issues, it is recommended to make use of the “Call me”
option. Approximately two hours after the conference call, a replay
will be available on aegon.com.
Click to join
With “Call me”, there’s no need to dial-in. Simply click the
following registration link and select the option “Call
me”.
Enter your information and you will be called back to directly
join the conference. The link becomes active 15 minutes prior to
the scheduled start time. Should you wish not to use the “Click to
join” function, dial-in numbers are also available. For passcode:
you will receive a personal pin upon registration.
Dial-in numbers for conference call:
United States: +1 864 991 4103 (local)
United Kingdom: +44 808 175 1536 (toll-free)
The Netherlands: +31 800 745 8377 (toll-free)
The Netherlands: +31 970 102 86838 (toll)
Financial calendar 2024/2025
Third quarter 2024 trading update – November 15, 2024
Second half 2024 results – February 20, 2025
About Aegon
Aegon is an international financial services holding company.
Aegon’s ambition is to build leading businesses that offer their
customers investment, protection, and retirement solutions. Aegon’s
portfolio of businesses includes fully owned businesses in the
United States and United Kingdom, and a global asset manager. Aegon
also creates value by combining its international expertise with
strong local partners via insurance joint ventures in Spain &
Portugal, China, and Brazil, and via asset management partnerships
in France and China. In addition, Aegon owns a Bermuda-based life
insurer and generates value via a strategic shareholding in a
market leading Dutch insurance and pensions company.
Aegon’s purpose of helping people live their best lives
runs through all its activities. As a leading global investor and
employer, Aegon seeks to have a positive impact by addressing
critical environmental and societal issues, with a focus on climate
change and inclusion & diversity. Aegon is headquartered in The
Hague, the Netherlands, domiciled in Bermuda, and listed on
Euronext Amsterdam and the New York Stock Exchange. More
information can be found at aegon.com. More information can be
found at aegon.com.
Local currencies and constant currency exchange
rates
This document contains certain information about Aegon’s results,
financial condition and revenue generating investments presented in
USD for the Americas and in GBP for the United Kingdom, because
those businesses operate and are managed primarily in those
currencies. Certain comparative information presented on a constant
currency basis eliminates the effects of changes in currency
exchange rates. None of this information is a substitute for or
superior to financial information about Aegon presented in EUR,
which is the currency of Aegon’s primary financial statements.
Forward-looking statements
The statements contained in this document that are not historical
facts are forward-looking statements as defined in the US Private
Securities Litigation Reform Act of 1995. The following are words
that identify such forward-looking statements: aim, believe,
estimate, target, intend, may, expect, anticipate, predict,
project, counting on, plan, continue, want, forecast, goal, should,
would, could, is confident, will, and similar expressions as they
relate to Aegon. These statements may contain information about
financial prospects, economic conditions and trends and involve
risks and uncertainties. In addition, any statements that refer to
sustainability, environmental and social targets, commitments,
goals, efforts and expectations and other events or circumstances
that are partially dependent on future events are forward-looking
statements. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that
are difficult to predict. Aegon undertakes no obligation, and
expressly disclaims any duty, to publicly update or revise any
forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements, which merely
reflect company expectations at the time of writing. Actual results
may differ materially and adversely from expectations conveyed in
forward-looking statements due to changes caused by various risks
and uncertainties. Such risks and uncertainties include but are not
limited to the following:
- Unexpected delays, difficulties, and expenses in executing
against Aegon’s environmental, climate, diversity and inclusion or
other “ESG” targets, goals and commitments, and changes in laws or
regulations affecting us, such as changes in data privacy,
environmental, health and safety laws;
- Changes in general economic and/or governmental conditions,
particularly in Bermuda, the United States, the Netherlands and the
United Kingdom;
- Civil unrest, (geo-) political tensions, military action or
other instability in a country or geographic region;
- Changes in the performance of financial markets, including
emerging markets, such as with regard to:
- The frequency and severity of defaults by issuers in Aegon’s
fixed income investment portfolios;
- The effects of corporate bankruptcies and/or accounting
restatements on the financial markets and the resulting decline in
the value of equity and debt securities Aegon holds;
- The effects of declining creditworthiness of certain public
sector securities and the resulting decline in the value of
government exposure that Aegon holds;
- The impact from volatility in credit, equity, and interest
rates;
- Changes in the performance of Aegon’s investment portfolio and
decline in ratings of Aegon’s counterparties;
- Lowering of one or more of Aegon’s debt ratings issued by
recognized rating organizations and the adverse impact such action
may have on Aegon’s ability to raise capital and on its liquidity
and financial condition;
- Lowering of one or more of insurer financial strength ratings
of Aegon’s insurance subsidiaries and the adverse impact such
action may have on the written premium, policy retention,
profitability and liquidity of its insurance subsidiaries;
- The effect of applicable Bermuda solvency requirements, the
European Union’s Solvency II requirements, and applicable
equivalent solvency requirements and other regulations in other
jurisdictions affecting the capital Aegon is required to
maintain;
- Changes in the European Commissions’ or European regulator’s
position on the equivalence of the supervisory regime for insurance
and reinsurance undertakings in force in Bermuda;
- Changes affecting interest rate levels and low or rapidly
changing interest rate levels;
- Changes affecting currency exchange rates, in particular the
EUR/USD and EUR/GBP exchange rates;
- Changes affecting inflation levels, particularly in the United
States, the Netherlands and the United Kingdom;
- Changes in the availability of, and costs associated with,
liquidity sources such as bank and capital markets funding, as well
as conditions in the credit markets in general such as changes in
borrower and counterparty creditworthiness;
- Increasing levels of competition, particularly in the United
States, the Netherlands, the United Kingdom and emerging
markets;
- Catastrophic events, either manmade or by nature, including by
way of example acts of God, acts of terrorism, acts of war and
pandemics, could result in material losses and significantly
interrupt Aegon’s business;
- The frequency and severity of insured loss events;
- Changes affecting longevity, mortality, morbidity, persistence
and other factors that may impact the profitability of Aegon’s
insurance products and management of derivatives;
- Aegon’s projected results are highly sensitive to complex
mathematical models of financial markets, mortality, longevity, and
other dynamic systems subject to shocks and unpredictable
volatility. Should assumptions to these models later prove
incorrect, or should errors in those models escape the controls in
place to detect them, future performance will vary from projected
results;
- Reinsurers to whom Aegon has ceded significant underwriting
risks may fail to meet their obligations;
- Changes in customer behavior and public opinion in general
related to, among other things, the type of products Aegon sells,
including legal, regulatory or commercial necessity to meet
changing customer expectations;
- Customer responsiveness to both new products and distribution
channels;
- Third-party information used by us may prove to be inaccurate
and change over time as methodologies and data availability and
quality continue to evolve impacting our results and
disclosures;
- As Aegon’s operations support complex transactions and are
highly dependent on the proper functioning of information
technology, operational risks such as system disruptions or
failures, security or data privacy breaches, cyberattacks, human
error, failure to safeguard personally identifiable information,
changes in operational practices or inadequate controls including
with respect to third parties with which Aegon does business, may
disrupt Aegon’s business, damage its reputation and adversely
affect its results of operations, financial condition and cash
flows, and Aegon may be unable to adopt to and apply new
technologies;
- The impact of acquisitions and divestitures, restructurings,
product withdrawals and other unusual items, including Aegon’s
ability to complete, or obtain regulatory approval for,
acquisitions and divestitures, integrate acquisitions, and realize
anticipated results, and its ability to separate businesses as part
of divestitures;
- Aegon’s failure to achieve anticipated levels of earnings or
operational efficiencies, as well as other management
initiatives related to cost savings, Cash Capital at Holding, gross
financial leverage and free cash flow;
- Changes in the policies of central banks and/or
governments;
- Litigation or regulatory action that could require Aegon to pay
significant damages or change the way Aegon does business;
- Competitive, legal, regulatory, or tax changes that affect
profitability, the distribution cost of or demand for Aegon’s
products;
- Consequences of an actual or potential break-up of the European
Monetary Union in whole or in part, or further consequences of the
exit of the United Kingdom from the European Union and potential
consequences if other European Union countries leave the European
Union;
- Changes in laws and regulations, or the interpretation thereof
by regulators and courts, including as a result of comprehensive
reform or shifts away from multilateral approaches to regulation of
global or national operations, particularly regarding those laws
and regulations related to ESG matters, those affecting Aegon’s
operations’ ability to hire and retain key personnel, taxation of
Aegon companies, the products Aegon sells, the attractiveness of
certain products to its consumers and Aegon’s intellectual
property;
- Regulatory changes relating to the pensions, investment,
insurance industries and enforcing adjustments in the jurisdictions
in which Aegon operates;
- Standard setting initiatives of supranational standard setting
bodies such as the Financial Stability Board and the International
Association of Insurance Supervisors or changes to such standards
that may have an impact on regional (such as EU), national or US
federal or state level financial regulation or the application
thereof to Aegon, including the designation of Aegon by the
Financial Stability Board as a Global Systemically Important
Insurer (G-SII);
- Changes in accounting regulations and policies or a change by
Aegon in applying such regulations and policies, voluntarily or
otherwise, which may affect Aegon’s reported results, shareholders’
equity or regulatory capital adequacy levels;
- Changes in ESG standards and requirements, including
assumptions, methodology and materiality, or a change by Aegon in
applying such standards and requirements, voluntarily or otherwise,
may affect Aegon’s ability to meet evolving standards and
requirements, or Aegon’s ability to meet its sustainability and
ESG-related goals, or related public expectations, which may also
negatively affect Aegon’s reputation or the reputation of its board
of directors or its management; and
- Reliance on third-party information in certain of Aegon’s
disclosures, which may change over time as methodologies and data
availability and quality continue to evolve. These factors, as well
as any inaccuracies in third-party information used by Aegon,
including in estimates or assumptions, may cause results to differ
materially and adversely from statements, estimates, and beliefs
made by Aegon or third-parties. Moreover, Aegon’s disclosures based
on any standards may change due to revisions in framework
requirements, availability of information, changes in its business
or applicable governmental policies, or other factors, some of
which may be beyond Aegon’s control. Additionally, Aegon's
discussion of various ESG and other sustainability issues in this
document or in other locations, including on our corporate website,
may be informed by the interests of various stakeholders, as well
as various ESG standards, frameworks, and regulations (including
for the measurement and assessment of underlying data). As such,
our disclosures on such issues, including climate-related
disclosures, may include information that is not necessarily
"material" under US securities laws for SEC reporting purposes,
even if we use words such as "material" or "materiality" in
relation to those statements. ESG expectations continue to evolve,
often quickly, including for matters outside of our control; our
disclosures are inherently dependent on the methodology (including
any related assumptions or estimates) and data used, and there can
be no guarantee that such disclosures will necessarily reflect or
be consistent with the preferred practices or interpretations of
particular stakeholders, either currently or in future.
This document contains information that qualifies, or may
qualify, as inside information within the meaning of Article 7(1)
of the EU Market Abuse Regulation (596/2014). Further details of
potential risks and uncertainties affecting Aegon are described in
its filings with the Netherlands Authority for the Financial
Markets and the US Securities and Exchange Commission, including
the 2023 Integrated Annual Report. These forward-looking statements
speak only as of the date of this document. Except as required by
any applicable law or regulation, Aegon expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in Aegon’s expectations with regard thereto or
any change in events, conditions or circumstances on which any such
statement is based.
WORLD FINANCIAL GROUP (WFG):
WFG CONSISTS OF:
IN THE UNITED STATES, WORLD FINANCIAL GROUP
INSURANCE AGENCY, LLC (IN CALIFORNIA, DOING BUSINESS AS WORLD
FINANCIAL INSURANCE AGENCY, LLC), WORLD FINANCIAL GROUP INSURANCE
AGENCY OF HAWAII, INC., WORLD FINANCIAL GROUP INSURANCE AGENCY OF
MASSACHUSETTS, INC., AND / OR WFG INSURANCE AGENCY OF PUERTO RICO,
INC. (COLLECTIVELY WFGIA), WHICH OFFER INSURANCE AND ANNUITY
PRODUCTS.
IN THE UNITED STATES, TRANSAMERICA FINANCIAL
ADVISORS, INC. IS A FULL-SERVICE, FULLY LICENSED, INDEPENDENT
BROKER-DEALER AND REGISTERED INVESTMENT ADVISOR. TRANSAMERICA
FINANCIAL ADVISORS, INC. (TFA), MEMBER FINRA,
MSRB, SIPC , AND REGISTERED INVESTMENT ADVISOR, OFFERS
SECURITIES AND INVESTMENT ADVISORY SERVICES.
IN CANADA, WORLD FINANCIAL GROUP INSURANCE AGENCY
OF CANADA INC. (WFGIAC), WHICH OFFERS LIFE INSURANCE AND SEGREGATED
FUNDS. WFG SECURITIES INC. (WFGS), WHICH OFFERS MUTUAL FUNDS.
WFGIAC AND WFGS ARE AFFILIATED COMPANIES.
- 20240822_PR_Aegon reports first half year 2024 results
Aegon N V (BIT:AGN)
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