Aegon Ltd. · EURONEXT:AGN
Aegon — Q1 2024 Earnings Presentation
25 slides from Aegon's earnings presentation, May 16, 2024
Slide 1: 1Q 2024 Trading Update
1Q 2024 Trading Update Lard Friese Matt Rider Chief Executive Officer Chief Financial Officer May 16, 2024
Slide 2: Key messages
Key messages ▪ EUR 256 million operating capital generation1, on track to meet the guidance of around EUR 1.1 billion for 2024 ▪ Continued strong sales growth in US Strategic Assets, UK Workplace, and Brazil; positive third-party net flows in Asset Management; challenges in UK Retail ▪ Steady progre
Slide 3: Aligning Transamerica's reporting structure with strategy and business model
Aligning Transamerica’s reporting structure with strategy and business model Transamerica’s business segments Moving from two to four Savings & Protection business segments that Distribution Financial Assets Investments Solutions are … ▪ World Financial ▪ Mutual Funds ▪ Individual Life ▪ Universal L
Slide 4: 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 5: Growing steadily in the UK Workplace business, but continued challenging environment for Retail
Growing steadily in the UK Workplace business, but continued challenging environment for Retail UK (in GBP million) Workplace Retail Revenues gained / net deposits net deposits (lost) on net deposits (annualized) ▪ In Workplace, continued solid level of inflows from new and existing schemes 733 ▪ Ne
Slide 6: Lower new business volumes in International from pricing regulations and higher interest rates
Lower new business volumes in International from pricing regulations and higher interest rates International (in EUR million) New life sales P&C and A&H new Operating capital premium production generation ▪ Continued growth in Brazil with new life 86 sales increasing by 22% 73 ▪ Lower new life sales
Slide 7: Improving flows in Asset Management
Improving flows in Asset Management Aegon Asset Management (in EUR million) 3rd-party net deposits Net deposits Operating capital Global Platforms Strategic Partnerships generation ▪ Improved net deposits in 3rd-party 43 business on the Global Platforms mainly 2.604 from fixed income assets in the U
Slide 8: 1Q 2024 Trading Update
1Q 2024 Trading Update Matt Rider Chief Financial Officer
Slide 9: 1Q 2024 trading update
1Q 2024 trading update (in EUR million) Operating capital Free cash Cash Capital Gross generation1 flow at Holding financial leverage 256 14 1,961 5,101 -12% -70% (427) +37 vs. 1Q 2023 vs. 1Q 2023 vs. 2H 2023 vs. 2H 2023 9 1. Excluding holding funding and operating expenses of EUR (66) million; tota
Slide 10: Capital positions of main units remaining above operating levels
Capital positions of main units remaining above operating levels US RBC ratio1 441% at the end of 1Q 2024 ▪ Operating capital generation contributed 6%-pts to the ratio, and more than offset a remittance to an intermediate holding company ▪ Market movements had a 6%-pt positive impact primarily due
Slide 11: EUR 256 million operating capital generation, on track to meet guidance
EUR 256 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) -12% ▪ Earnings on in-force captured 292 292 unfavorable underwriting experience 17 256 in the UK
Slide 12: US operating capital generation decreasing from higher new business strain and lower release of required capital
US operating capital generation decreasing from higher new business strain and lower release of required capital Americas (in USD million) Earnings on In-Force Operating Capital Generation -27% 285 224 ▪ Higher earnings on in-force for 282 165 Americas from growth in Strategic 37 Distribution 37 Ass
Slide 13: 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 97% 99% 3.692 2027 target: 2,200 -7,1% -8,1% -9,4% -11,3% 2022 1Q24 1Q23 1Q
Slide 14: Cash Capital at Holding remaining above the operating range
Cash Capital at Holding remaining above the operating range Cash Capital at Holding (in EUR million) 2.387 14 ▪ Free cash flow reflects remittances from 19 1.961 International (459) ▪ EUR 459 million cash outflow from ongoing EUR 1.535 billion share buyback program, 1,500 which is expected to be com
Slide 15: 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 16: Concluding remarks
Concluding remarks Lard Friese Chief Executive Officer
Slide 17: Key messages
Key messages ▪ EUR 256 million operating capital generation1, on track to meet the guidance of around EUR 1.1 billion for 2024 ▪ Continued strong sales growth in US Strategic Assets, UK Workplace, and Brazil; positive third-party net flows in Asset Management; challenges in UK Retail ▪ Steady progre
Slide 18: Reminder Aegon UK Strategy Teach-In
Reminder Analysts and investors are invited to a Aegon UK Strategy Teach-In Webinar on June 25, 2024 For questions, please contact IR +31 70 344 8305 or [email protected] 18
Slide 19: Appendix
Appendix
Slide 20: Key capital sensitivities and assumptions
Key capital sensitivities and assumptions Capital sensitivities1 UK SE US Solvency II Scenario US RBC (in percentage points, Solvency II equivalent 1Q 2024) Equity markets +25% -5% -9% -16% Equity markets -25% +7% -14% -25% Interest rates +50 bps +1% +4% +7% Interest rates -50 bps 0% -2% -4% Governm
Slide 21: 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 22: 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 23: 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 24: 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 25: Y aegon
Y aegon