Aegon(US:AEG) seekingalpha.com·2024-05-16 18:43Core Insights - Aegon Ltd. reported a strong start to Q1 2024 with continued commercial momentum in the U.S. and Brazil, achieving EUR256 million in operating capital generation, and remains on track to meet its 2024 guidance of around EUR1.1 billion [5][28][29] Financial Performance - Operating capital generation before holding, funding, and operating expenses was EUR256 million, a decrease of 12% year-over-year, primarily due to a one-time benefit in the previous year [18][20] - Free cash flow for the quarter was EUR14 million, with cash capital at the holding amounting to EUR2 billion, despite ongoing share buyback programs [18][26] - The U.S. RBC ratio increased to 441%, well above the operating level of 400%, reflecting positive market movements and operating capital generation [19] Business Segments - Aegon has restructured its reporting segments to better align with its strategy, creating four business segments: Distribution, Savings & Investments, Protection Solutions, and Financial Assets [8][9] - The Protection Solutions segment saw a 5% increase in new life sales, driven by higher index universal life sales, while the U.K. retail business faced challenges with net outflows [12][13] Asset Management - The Global Platforms business reported net deposits of EUR2.6 billion, returning to positive net deposits after two years of outflows, driven by strong fund performance and a large contract win [15][16] - Operating capital generation in the Asset Management segment increased to EUR43 million, up from EUR17 million in the previous year [16] Strategic Developments - Aegon announced a new share buyback program of EUR200 million, expected to commence in July 2024, following the completion of a EUR1.5 billion buyback program [7][27] - The company aims to increase the number of agents in the World Financial Group (WFG) to 110,000 by 2027, with a 13% increase in licensed agents year-over-year [10] Market Outlook - The company remains focused on its strategic agenda to transform Transamerica into a leading life insurance and retirement company for middle-market America, with a significant opportunity in the underserved market of 68 million households [75][76] - Aegon is evaluating potential M&A opportunities that align with its core markets and strategic objectives, emphasizing disciplined capital allocation [81][76]