Aegon Ltd. (NYSE:AEG) Q3 2024 Sales Call Transcript November 15, 2024 3:00 AM ET Company Participants Yves Cormier - Head of Investor Relations Lard Friese - CEO, Chairman of Management Board & Executive Director Duncan Russell - CFO & Member of Management Board Conference Call Participants Farooq Hanif - JPMorgan Nasib Ahmed - UBS Michael Huttner - Berenberg Benoit Petrarque - Kepler Farquhar Murray - Autonomous Iain Pearce - Exane BNP Paribas David Barma - Bank of America Jason Kalamboussis - ING Operator ...

Th aegon 3Q 2024 Trading Update Lard Friese Duncan Russell Chief Executive Officer Chief Financial Officer November 15, 2024 Key messages 2 ▪ EUR 336 million operating capital generation 1, now expecting FY 2024 operating capital generation of around EUR 1.2 billion ▪ Continued strong growth in UK Workplace and in third-party net deposits in Asset Management ▪ US Strategic Assets experience commercial volatility with lower new life sales and net outflows in retirement ▪ Lower new business volumes in Brazil ...

The Hague, November 15, 2024 - Please click here to access all 3Q 2024 trading update related documents.  EUR 336 million operating capital generation, before holding funding and operating expenses. Full-year 2024 guidance raised to around EUR 1.2 billion, from around EUR 1.1 billion previouslyCapital ratios of the main units remain above their respective operating levelsPlanned new EUR 150 million share buyback program announced; completion expected in the first half of 2025. The program includes neutraliz ...

The Hague, September 13, 2024 - Aegon today announces the appointment of Michele Bareggi as Chief Strategy, Transformation and Growth Officer, and member of Aegon’s Executive Committee, starting November 1, 2024. Michele succeeds Duncan Russell, who took on the role of Group CFO in September 2024. Mr. Bareggi brings over 25 years of experience in the financial services industry, including his tenure at Athora, a leading European savings and retirement services group. Mr. Bareggi has been instrumental in es ...

PoulssenAt the Lab, we have a long history of Aegon (NYSE:AEG), but we should remind our new readers that this company provides life insurance, asset management activities, and pension solutions. Aegon was funded in 1880 in The Hague (Netherlands) and served more than ten countries, with critical operations in the UK and the United States. Indeed, our investment equity story was backed by 1) the Transamerica division's upside, 2) a supportive Shareholders' Remuneration, and 3) a sound management team wi ...

Aegon Ltd. (NYSE:AEG) Q2 2024 Earnings Conference Call August 22, 2024 3:00 AM ET Company Participants Yves Cormier - Head of Investor Relations Lard Friese - Chief Executive Officer Matthew Rider - Chief Financial Officer Conference Call Participants David Barma - Bank of America Steven Haywood - HSBC Michael Huttner - Berenberg Farquhar Murray - Autonomous Nasib Ahmed - UBS Jason Kalamboussis - ING Farooq Hanif - JPMorgan Operator Good day and thank you for standing by. Welcome to Aegon First Half 2024 Re ...

Financial Performance - Aegon's operating result decreased by 8% to EUR 750 million in 1H 2024 compared to EUR 818 million in 1H 2023, primarily due to unfavorable mortality experience in the Americas [226]. - Aegon's operating result after tax for the first half of 2024 was €633 million, a decrease of 9.4% compared to €671 million in the first half of 2023 [306]. - The total operating result for the first half of 2024 was €722 million, down from €768 million in the same period last year, reflecting a decline of 6.0% [306]. - The net result for 1H 2024 was a loss of EUR 65 million, an improvement from a loss of EUR 199 million in 1H 2023 [225]. - Aegon's total New Business Value decreased to EUR 290 million in H1 2024 from EUR 316 million in H1 2023, with IFRS new business value at EUR 182 million [252]. Capital Management - Aegon aims to generate operating capital of approximately EUR 1.2 billion and free cash flow of around EUR 800 million by 2025, with a target dividend per share of EUR 0.40 [157]. - Aegon announced an interim dividend for 2024 of EUR 0.16 per common share, an increase of EUR 0.02 compared to the interim dividend for 2023 [217]. - Aegon's Cash Capital at Holding decreased from EUR 2,387 million to EUR 2,090 million, largely due to EUR 686 million of capital returns to shareholders [216]. - Aegon aims to maintain Cash Capital at Holding between EUR 0.5 billion and EUR 1.5 billion to ensure liquidity and meet obligations [282]. - The group solvency ratio decreased from 193% to 190% due to the redemption of EUR 700 million Tier 2 securities and a new EUR 200 million share buyback program [214]. Asset Management - Aegon plans to grow assets under management in the General Account Stable Value product and IRAs to USD 16 billion and USD 18 billion, respectively, by 2027 [170]. - Aegon's account balances in Retirement Plans increased to USD 229 billion at the end of the first half of 2024, up from USD 206 billion a year earlier [169]. - Assets under management increased by EUR 25 billion to EUR 318 billion compared to June 30, 2023, driven by favorable markets and positive net deposits [209]. - Total Platform Assets under Administration increased by 11% to GBP 111 billion compared to June 30, 2023 [195]. - Aegon UK expects to grow combined assets under administration to above GBP 135 billion by 2028, with operating capital generation increasing by around 12% per year [191]. Sales and Deposits - In the first half of 2024, Aegon Americas reported a 17% increase in gross deposits for Retirement Plans, totaling USD 16.5 billion, while net deposits showed a 19% improvement compared to the previous year [160]. - New life sales in Individual Life reached USD 245 million in the first half of 2024, a 5% increase year-over-year, driven primarily by indexed universal life products [173]. - New premium production for Workplace Health insurance increased by 10% to USD 67 million in the first half of 2024, driven by a new large voluntary benefits contract [176]. - Net deposits for Indexed Annuities amounted to USD 505 million in the first half of 2024, with RILA products contributing USD 531 million, up from USD 197 million in the same period of 2023 [175]. - Net deposits in the Workplace platform amounted to GBP 1.7 billion in the first half of 2024, compared to GBP 1.5 billion in the same period of 2023 [193]. Operational Challenges - Aegon's operating result from the Americas decreased by 12% to EUR 550 million in 1H 2024, driven by unfavorable mortality experience [227]. - The operating result of Financial Assets decreased to USD 64 million in H1 2024, down from USD 261 million in H1 2023, primarily due to unfavorable mortality claims of USD 116 million [232]. - The operating result from the UK was GBP 80 million in H1 2024, a decrease from GBP 97 million in the prior year, driven by unfavorable claims experience in the protection book [234]. - The operating result from the International segment decreased by 5% to EUR 90 million in H1 2024, mainly due to lower results in TLB from unfavorable claims and expenses [236]. - The company faced challenges from external factors such as changes in financial markets and regulatory environments, impacting its operational strategies [303]. Risk Management - Aegon continues to optimize its risk-return profile through an active global reinsurance program and by monitoring new business risks [279]. - The company emphasizes maintaining adequate liquidity and capital management to support its strategic objectives and stakeholder interests [273]. - Aegon's US RBC ratio was 446% and the Scottish Equitable Plc (UK) solvency ratio was 189% as of June 30, 2024, exceeding the minimum dividend payment levels [278]. - The Group solvency ratio is subject to ongoing supervisory review and is not final until filed with the regulator [310]. - The financial numbers presented in this release are unaudited [310].

Core Viewpoint - Aegon has appointed Shawn C.D. Johnson as the new CEO of Aegon Asset Management, effective September 23, 2024, succeeding Bas NieuweWeme, who is leaving to pursue other career opportunities [1][2]. Group 1: Leadership Transition - Shawn C.D. Johnson brings extensive experience, having previously served as CEO of AMP Capital and founded Guidon Global LLC, with a notable 15-year tenure at State Street Global Advisors [1]. - Bas NieuweWeme will remain as an advisor until December 1 to ensure a smooth transition [1]. - Lard Friese, CEO of Aegon, expressed confidence in Shawn's ability to guide Aegon AM through its next phase of transformation, emphasizing his expertise in asset management and strategic consulting [2]. Group 2: Organizational Growth - Under Bas NieuweWeme's leadership since 2019, Aegon AM has become more client-driven and has shown strong growth in its global platforms and alternatives business [2]. - The organization is moving towards a global platform operating under one brand to leverage Aegon AM's international expertise and product suite [2]. - Shawn Johnson expressed enthusiasm for supporting Aegon's ambition to create leading businesses in investment, protection, and retirement solutions [2]. Group 3: Company Overview - Aegon is an international financial services holding company focused on building leading businesses that offer investment, protection, and retirement solutions [4]. - The company operates fully owned businesses in the United States and the United Kingdom, along with a global asset manager [4]. - Aegon aims to create value through partnerships in various countries, including insurance joint ventures in Spain, Portugal, China, and Brazil [4].

Core Insights - Aegon reported a net loss of EUR 65 million in the first half of 2024, primarily due to fair value losses in the US and unfavorable mortality experience [2] - The operating result decreased by 8% year-over-year to EUR 750 million, reflecting challenges in the US Financial Assets segment [2] - Shareholders' equity per share fell by 6% to EUR 4.02, while the CSM per share increased by 14% to EUR 4.17 after tax adjustments [2] Financial Performance - Operating capital generation before holding funding and operating expenses decreased by 5% to EUR 588 million, but is on track to meet the 2024 guidance of EUR 1.1 billion [3][5] - Cash Capital at Holding remained strong at EUR 2.1 billion, with a completed share buyback program of EUR 1.535 billion and a new program of EUR 200 million initiated [3][8] - Free Cash Flow was reported at EUR 373 million, which includes the final dividend from 2023 and an interim dividend of EUR 0.16 per common share, up EUR 0.02 from 2023 [3] Strategic Developments - Aegon made progress in its strategy to become a leading provider of investment, protection, and retirement solutions, with strong sales growth in US Strategic Assets and the UK Workplace platform [4] - The capital employed in US Financial Assets decreased by USD 0.4 billion, with a target to reduce it to EUR 2.2 billion by the end of 2027 [4] - In the US, Transamerica's individual life new sales increased by 5% to USD 245 million, and the sales force of World Financial Group grew by 13% [6] Market Position and Growth - Aegon UK's Workplace platform saw net deposits increase to GBP 1.7 billion, while the Adviser platform experienced net outflows of GBP 1.8 billion due to reduced customer activity [7] - The global asset management segment reported strong commercial results, with third-party net deposits totaling almost EUR 8 billion [7] - In Brazil, the Mongeral Aegon Group's life sales rose by 9% to EUR 64 million, benefiting from Aegon's increased economic stake [8]

Core Viewpoint - The U.S. economy is experiencing challenges in 2024, with inflation remaining above the Federal Reserve's target of 2%, making dividend investing a viable strategy for mitigating inflation's negative impact [1][2] Dividend Stocks Overview - Dividend stocks are essential for generating returns in the stock market, especially those priced under $10, which show promising potential for value appreciation [1][2] Company Summaries Telefonica (TEF) - Telefonica is a major global mobile network provider that has undertaken significant debt reduction measures, including restructuring and acquisitions [3] - In 2024, TEF stock has appreciated 14% to $4.51 per share, with a year-over-year gain of 6.09% and a current dividend yield of 7.19% [3][4] - Analysts predict a further stock price increase of 1.55% to $4.60 per share, making it a strong candidate for dividend investors [4] Nokia (NOK) - Nokia, a key player in telecom and IT, reported a 19% decline in net sales to €4.5 billion in Q2 2024, but improved its gross margin to 43.3% [5][6] - The company is experiencing growth in its network infrastructure business, particularly in North America, with an expected operating margin of 11.5% to 14.5% for FY 2024 [5] - Nokia's dividend yield is currently at 3.66%, and the stock has risen nearly 13% in 2024, indicating potential for future growth [6] Aegon (AEG) - Aegon is an insurance company focused on savings, pensions, and insurance solutions, currently transforming its U.S. subsidiary into a leading life insurance provider [7] - The company has announced a €1.54 billion share buyback program, followed by an additional €200 million buyback, reflecting strong capital return initiatives [7][8] - Aegon's dividend yield stands at 5.43%, with stock appreciation of 11.87% in 2024 and 18.92% over the past year, currently priced at $6.35 per share [8]