Aegon(AEG) - 2025 Q4 - Annual Report

Financial Performance - Aegon reported an operating result of EUR 1,702 million for the full year 2025, reflecting a strong performance in its core business segments [33]. - The company generated free cash flow of EUR 829 million, indicating robust financial health and liquidity [33]. - Aegon reported operating capital generation of EUR 1.3 billion, exceeding targets and demonstrating strong cash-generating capacity [69]. - The operating result increased by 15% year-over-year to EUR 1.7 billion, supported by business growth and favorable market impacts [69]. - Free cash flow amounted to EUR 829 million, consistent with the company's ambitions for capital return to shareholders [69]. - In 2025, Aegon reported a free cash flow of EUR 829 million and an operating result of EUR 1,702 million [152]. - The Group Solvency II ratio at December 31 was 184%, with Group Solvency Own Funds amounting to EUR 12 billion [152]. - Aegon aims for operating result growth of around 5% per annum from a run-rate of EUR 1.5 - 1.7 billion [193]. Shareholder Returns - Aegon initiated a EUR 150 million share buyback program, demonstrating its commitment to returning value to shareholders [47]. - Aegon completed a EUR 400 million share buyback program, initially starting as a EUR 200 million initiative [51]. - Aegon increased its dividend to shareholders by 14% to 40 eurocents per common share in 2025 [122]. - Aegon announced a final dividend of EUR 0.21 per common share for 2025, an 11% increase compared to the 2024 final dividend, meeting the EUR 0.40 dividend target for 2025 [197]. - Aegon's share price increased by 16% in 2025, while the total shareholder return for the year was 23%, factoring in both dividends and share-price performance [198]. - Aegon is committed to returning capital to shareholders in line with free cash flow growth, with excess capital expected to be distributed through dividends and share buybacks [195]. Strategic Initiatives - Aegon launched an investment program in Bermuda focused on education, financial empowerment, and social initiatives, aligning with its purpose [47]. - Aegon aims to become a leading digital savings and retirement platform provider in the UK market, reflecting its growth strategy [37]. - Aegon plans to relocate its head office and legal seat to the US, aligning with its strategy to become a leading US life insurance and retirement group [54][59]. - Aegon aims to relocate its head office to the US by January 1, 2028, and report full-year 2027 results under US GAAP [93]. - Aegon will conduct a strategic review of Aegon UK to assess options for maximizing stakeholder value, including potential divestment [113]. Customer Engagement and Market Reach - Aegon has 24.9 million customers, showcasing its extensive reach in the financial services market [33]. - The distribution network for Transamerica grew to over 95,000 licensed agents, expanding access to protection and retirement solutions [73]. - Aegon UK advanced its transformation into a leading savings and retirement platform, promoting financial education through initiatives like Pension Geeks [158]. - Aegon UK launched Mylo in 2025, initially available to 900,000 customers, aiming to enhance customer engagement and decision-making during significant life moments [161]. - Aegon's joint venture in Brazil, MAG Seguros, launched an initiative to provide life insurance to 18 million favela residents, enhancing financial inclusion [158]. Sustainability and ESG Efforts - Aegon’s ESG rating was upgraded from "AA" to "AAA" by MSCI, reflecting improvements in governance and sustainability practices [77]. - Aegon is committed to achieving net-zero emissions across its general account portfolio by 2050, aligning with the Paris Agreement and the Net-Zero Asset Owner Alliance [210]. - Aegon identified 50 high-impact suppliers representing 88% of its total spend to prioritize engagement on sustainability topics, recognizing that 91% of its carbon footprint relates to scope 3 emissions [184]. - Aegon has designated biodiversity as a new focus area in its Responsible Investment Policy, with an initial assessment conducted in 2025 to identify biodiversity-related dependencies and risks across its portfolio [203]. - Aegon AM launched the Investment Grade Climate Transition Fund in 2025, aiming to reduce carbon footprint by 30% by 2030 and achieve net-zero portfolio emissions by 2040 [205]. - Aegon AM expanded its impact investing activities, focusing on climate action, social inclusion, and resource efficiency, designed to deliver environmental and social benefits while generating solid financial returns [207]. - Aegon AM integrated ESG factors systematically throughout the investment process, enhancing its scalable alternative fixed income platform [208]. - Aegon aims to reduce the weighted average carbon intensity of its corporate fixed income and listed equity general account assets by 50% against a 2019 baseline [137].