Aegon trading update for first quarter 2024
The Hague, May 16, 2024 - Please click here to access
all 1Q2024 Trading Update related
documents.
- EUR 256 million operating capital generation before holding
funding and operating expenses, on track to achieve guidance of
around EUR 1.1 billion for 2024
- Capital ratios remain robust, above their respective operating
levels
- Cash Capital at Holding remains strong at EUR 2.0 billion,
reflecting 85% completion of the ongoing EUR 1.535 billion share
buyback program
- Planned new EUR 200 million share buyback program announced,
expected to be completed by the end of 2024
- Reporting structure of US business amended to better reflect
the US strategy as set out at the June 2023 Capital Markets
Day
- Continued strong sales growth in US Strategic Assets, UK
Workplace businesses and Brazilian life insurance business.
Positive third-party net flows at Asset Management business. UK
Retail business continues to be affected by challenging market
conditions
Lard Friese, Aegon CEO, 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.”
Additional information
PresentationThe conference call presentation is
available on aegon.com as of 7.00 am CEST.
SupplementsAegon’s first quarter 2024 Trading
Update Supplement and other supplementary documents are available
on aegon.com.
Conference call including Q&AThe conference
call starts at 9:00 am CEST, with an audio webcast 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 additionally you will receive an email with
the call details and again your personal pin to enter the
conference call. To avoid any unforeseen connection issues, it is
recommended to make use of the ‘call me’ option. 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 2024Annual General Meeting –
June 12, 2024Aegon UK Strategy Teach-In (webinar) – June 25,
2024First half 2024 results – August 22, 2024Third quarter 2024
trading update – November 15, 2024
About AegonAegon 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.
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 |
Currency exchange ratesThis 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. 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 statementsThe 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, safety and health 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;
- 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;
- 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, and the attractiveness
of certain products to its consumers;
- Regulatory changes relating to the pensions, investment, and
insurance industries 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 may
provide information that is not necessarily material for SEC
reporting purposes but that is informed by various ESG standards
and frameworks (including standards for the measurement of
underlying data), internal controls, and assumptions or third-party
information that are still evolving and subject to change.
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 2022 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.
- 20240516_PR_Aegon trading update for first quarter 2024
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