Aegon(US:AEG)2025-08-21 10:05Financial Performance - Aegon reported a net profit of EUR 606 million for 1H 2025, a significant increase from a net loss of EUR 65 million in 1H 2024[18]. - The operating result rose by 19% to EUR 845 million compared to EUR 709 million in 1H 2024, driven by business growth and improved experience variance in the US[18][29]. - Free cash flow increased by 18% to EUR 442 million, up from EUR 373 million in 1H 2024[18]. - The net result before tax was EUR 733 million, leading to a net result of EUR 606 million after tax deductions[50]. - Shareholders' equity increased by 1% to EUR 7.3 billion, with equity per share rising by 2% to EUR 4.64[54]. - The net result for 1H 2025 was EUR 606 million, a significant recovery from a net loss of EUR 65 million in 1H 2024[109]. - Basic earnings per common share improved to EUR 0.36 in 1H 2025 compared to a loss of EUR 0.05 in 1H 2024[107]. - The operating result after tax for 1H 2025 was €663 million, up from €576 million in 1H 2024[137]. - The total comprehensive income for 1H 2025 was EUR 538 million, compared to EUR 75 million in 1H 2024, indicating a substantial increase[109]. Dividends and Share Buybacks - Aegon announced an interim dividend of EUR 0.19 per common share, representing a year-on-year increase of 19%[21]. - Aegon announced an interim dividend of EUR 0.19 per common share for 2025, an increase of EUR 0.03 compared to the previous year[73]. - The company is increasing its ongoing share buyback program to EUR 400 million, up from EUR 200 million[18]. - Aegon completed a share buyback program returning EUR 150 million to shareholders, repurchasing 25,200,170 common shares at an average price of EUR 5.9641 per share[173]. - The total share buyback program from July 6, 2023, to June 28, 2024, amounted to EUR 1.535 billion, with 301,105,806 common shares repurchased at an average price of EUR 5.0966 per share[176]. Sales and Growth - New life sales in the US increased by 13% to USD 276 million, with continued expansion in the distribution network[19]. - The Americas segment's operating result increased by 23% to EUR 627 million, reflecting growth in the Protection Solutions segment[31]. - New Individual Life sales increased by 13%, reaching a record-high level, driven by all distribution channels[77]. - Gross deposits for Retirement Plans increased by 13% to USD 18,643 million in 1H 2025, driven by higher takeover deposits[81]. - Net deposits for Retirement Plans reached USD 2,149 million, significantly improving from a negative USD 839 million in 1H 2024, with mid-sized plans contributing USD 1,691 million, a 45% increase[82]. - Total account balances in Retirement Plans grew by 5% year-over-year, with mid-sized plans seeing a 14% increase due to favorable market movements and net inflows[83]. - New life sales in Individual Life increased by 13% to USD 276 million, supported by growth in the brokerage channel and Transamerica's own agency channel[85]. - Net deposits for Indexed Annuities surged by 97% to USD 993 million, reflecting improved wholesale distribution productivity[85]. - New life sales in International markets rose by 3% to EUR 144 million, with Brazil, China, and Spain & Portugal contributing to the growth[100]. Financial Position and Assets - Aegon's valuation equity decreased by 5% to EUR 13.3 billion, primarily due to adverse currency movements[26]. - Total assets decreased to EUR 310,635 million as of June 30, 2025, down from EUR 327,390 million at the end of 2024, a reduction of 5.1%[110]. - Total investments on the balance sheet as of June 30, 2025, amounted to €276,360 million, with off-balance sheet investments totaling €580,682 million[140]. - The company reported a total of EUR 5.004 billion in insurance investment return for 1H 2025, significantly higher than EUR 2.367 billion in 1H 2024[148]. - The total financial assets measured at fair value increased to €267.235 billion as of June 30, 2025, up from €283.328 billion at December 31, 2024, reflecting a decrease of approximately 5.7%[168]. - The total financial liabilities measured at fair value amounted to €80.624 billion, compared to €81.513 billion at the end of 2024, showing a slight decrease of 1.1%[168]. Insurance and Liabilities - Insurance revenue decreased to EUR 4,769 million in 1H 2025 from EUR 5,043 million in 1H 2024, a decline of 5.4%[107]. - The company reported a decrease in insurance contract liabilities to EUR 170,892 million in 1H 2025 from EUR 188,359 million in 2024, a decline of 9.8%[110]. - The insurance service result for 1H 2025 was EUR 216 million, compared to a loss of EUR 24 million in 1H 2024[144]. - The company experienced onerous contract losses of EUR 624 million in 1H 2025, down from EUR 817 million in 1H 2024[144]. - The total closing liabilities for insurance contracts (Non-PAA) decreased to $170,841 million in 1H 2025 from $188,318 million in FY 2024, indicating a reduction of 9.8%[192]. Market and Economic Factors - The estimated US RBC ratio was 420% as of June 30, 2025, a decrease of 23 percentage points compared to year-end 2024[67]. - The Group solvency ratio decreased to 183%, influenced by a EUR 400 million share buyback program and the announced interim dividend[69]. - The gross financial leverage decreased by EUR 0.3 billion to EUR 4.9 billion, attributed to the depreciation of the US Dollar against the Euro[58]. - Non-financial assumption changes in 1H 2025 resulted in an adverse impact of EUR 467 million, primarily due to policyholder behavior assumptions[205]. - Financial assumption updates led to a favorable impact of EUR 269 million, recognized in Other Comprehensive Income (OCI)[206].