Aegon(US:AEG)2022-08-10 16:00Financial Performance - The net result for the first half of 2022 was a profit of EUR 856 million, down 41% from EUR 1,457 million in the first half of 2021, primarily due to lower gains from non-operating items[164]. - The operating result increased by 1% to EUR 1,001 million in the first half of 2022, driven by improved results in International, the United Kingdom, and The Netherlands, partially offset by lower results in the Americas and Asset Management[164]. - Total gross premiums for the first half of 2022 were EUR 8,227 million, a decrease of 11% from EUR 9,268 million in the first half of 2021[163]. - The operating result after tax for the first half of 2022 was EUR 814 million, slightly up from EUR 812 million in the same period of 2021[162]. - The Americas segment reported an operating result of EUR 402 million, down 9% from EUR 444 million in the first half of 2021[162]. - The Netherlands segment saw a 2% increase in operating result to EUR 377 million compared to EUR 370 million in the first half of 2021[162]. - The United Kingdom segment's operating result increased by 28% to EUR 107 million from EUR 84 million in the first half of 2021[162]. - The net result from Aegon's businesses in the Netherlands was EUR 1,362 million, an 81% increase compared to the first half of 2021, largely due to higher non-operating gains[196]. - The net result from Aegon's businesses in the United Kingdom was GBP 93 million in the first half of 2022, up from GBP 31 million in the same period of 2021, driven by positive non-operating items and a higher operating result[205]. Sales and Premiums - New life sales increased by 13% to EUR 400 million compared to EUR 353 million in the first half of 2021[162]. - New life sales increased by 15% to USD 243 million in the first half of 2022, with Individual Solutions generating USD 200 million, a 12% increase[191]. - New premium production for accident & health insurance was EUR 84 million, a 12% increase compared to the first half of 2021, primarily from Workplace Solutions[192]. - New life sales in Workplace Solutions increased by 28% to USD 43 million in the first half of 2022, driven by higher new sales of term life policies[191]. - New life sales in the United Kingdom amounted to GBP 12 million, a decrease of 11% compared to GBP 13 million in the first half of 2021, due to lower market demand[210]. Investment and Financial Position - The total fair value of debt securities, money market investments, and other as of June 30, 2022, was EUR 81,648 million, with unrealized losses of EUR 6,592 million[148]. - The total carrying value of debt securities with unrealized losses was EUR 43,042 million as of June 30, 2022, compared to EUR 14,425 million as of December 31, 2021[153]. - The total fair value of instruments with unrealized losses held by Aegon Americas and NL was EUR 73,723 million as of June 30, 2022[148]. - Aegon's Available Own Funds as of June 30, 2022, totaled €18,975 million, with Unrestricted Tier 1 capital at €14,030 million and Restricted Tier 1 capital at €1,877 million[289]. - Assets under management decreased by EUR 84 billion to EUR 314 billion at June 30, 2022, driven by unfavorable market movements and a transfer of EUR 49 billion due to divestment[233]. Guarantees and Liabilities - The liabilities for financial guarantees for minimum benefits totaled EUR 3,243 million at January 1, 2022, with incurred guarantee benefits of EUR 1,000 million in the first half of 2022[126]. - Guaranteed Minimum Death Benefits (GMDB) liabilities at January 1, 2022, were EUR 502 million, with incurred guarantee benefits of EUR 290 million and paid benefits of EUR 63 million, resulting in a balance of EUR 785 million at June 30, 2022[135]. - Guaranteed Minimum Income Benefits (GMIB) liabilities at January 1, 2022, were EUR 529 million, with incurred guarantee benefits of EUR 307 million and paid benefits of EUR 19 million, resulting in a balance of EUR 876 million at June 30, 2022[135]. - The net amount at risk for GMDB contracts was EUR 3,728 million, with an average attained age of contract holders at 71 years as of June 30, 2022[135]. - The total account value for financial guarantees at June 30, 2022, was EUR 38,453 million, with a net amount at risk of EUR 1,315 million[126]. Solvency and Capital Management - Aegon's Group Solvency II ratio rose from 211% at the end of 2021 to 214% by June 30, 2022, due to operating capital generation and favorable one-time items[175]. - Cash Capital at Holding increased from EUR 1,279 million at the end of 2021 to EUR 1,680 million on June 30, 2022, driven by free cash flow of EUR 394 million[176]. - Aegon aims to reduce its gross financial leverage to a range of EUR 5.0 – 5.5 billion by 2023[255]. - The US RBC ratio was 416%, exceeding the operating level of 400%, indicating strong capital adequacy in Aegon's operating units[244]. - NL Life's estimated Solvency II ratio increased from 186% on December 31, 2021, to 200% on June 30, 2022[268]. Risks and Uncertainties - Aegon emphasizes that forward-looking statements may involve risks and uncertainties, including unexpected delays and changes in economic conditions[292]. - The company faces risks related to operational disruptions, including cyberattacks and human error, which could adversely affect its financial condition[292]. - Changes in interest rate levels and currency exchange rates, particularly EUR/USD and EUR/GBP, are identified as significant risk factors[292]. - Aegon acknowledges the potential impact of acquisitions and divestitures on its ability to achieve anticipated earnings and operational efficiencies[292]. - The company is subject to regulatory changes that could affect its operations, including those related to pensions, investments, and insurance industries[293].