Aegon(US:AEG)2024-08-22 10:15Financial 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].