Financial Data and Key Metrics Changes - In Q3 2025, the company generated EUR 340 million of operating capital generation, a 1% increase year-on-year [3][10] - Free cash flow amounted to EUR 76 million, primarily reflecting the share of ASR's 2025 interim dividend [10] - Cash capital at holding remained strong at EUR 1.9 billion, despite returning over EUR 800 million to shareholders [4][15] Business Line Data and Key Metrics Changes - In the Americas, operating capital generation increased by 6%, or 12% on a constant currency basis, driven by strategic assets and stable financial assets [10][11] - Life sales at World Financial Group (WFG) increased by 15%, and annuity sales rose by 9%, supported by strong consumer demand [7] - In the U.K., net deposits in the workplace platform turned negative for the first time in two years due to the departure of two large low-margin schemes [8][9] Market Data and Key Metrics Changes - The U.S. retirement plans business reached $251 billion in assets under administration (AUA), with mid-sized plans increasing to $62 billion [44] - New life sales in Brazil continued to grow, particularly in credit and group life products, although offset by currency movements [9] Company Strategy and Development Direction - The company aims to transform Transamerica into America's leading middle-market life insurance and retirement company [5] - Plans to enhance the advisor platform and return it to growth by 2028, despite current challenges [8][56] - The company is reviewing a potential relocation of its legal domicile and head office to the United States, with updates expected at the Capital Markets Day [4][5] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about achieving all financial targets for 2025, despite the weakening of the US dollar [4][16] - The company is focused on improving cash flow predictability and managing remittances from business units [36][37] - Mortality assumptions are being monitored closely, with recent outcomes aligning with expectations [47][48] Other Important Information - The company executed over half of its ongoing EUR 400 million share buyback program, expecting to complete it by December 15 [4][15] - The RBC ratio in the U.S. increased to 425%, with operating capital generation contributing positively [13][14] Q&A Session Summary Question: Long-term care book assumptions and cash conversion - Management confirmed that the actual to expected claims ratio for long-term care is 97%, and they are satisfied with their assumptions [21][22] - Cash conversion from the U.S. is targeted for mid-single-digit growth, with investments impacting total capital generation [24] Question: Strategic assets and capital employed in financial assets - The reduction in capital employed in financial assets is attributed to the implementation of a base fee hedge and favorable equity markets [29][30] - Earnings on in-force for distribution and savings & investments are down due to margin pressure and mortality movements [32] Question: Stranded costs and payout ratio - Management indicated that stranded costs are a consideration in financial asset management, with further details expected at the Capital Markets Day [37] - The payout ratio is expected to improve over time as the quality of businesses enhances [36] Question: Variable annuities and mortality exposure - The company is monitoring the flooring issue in variable annuities and has not taken action yet, but will explore options if necessary [46] - Mortality outcomes have been favorable, with management confident in their assumptions [48] Question: UK market developments and RBC ratio - The UK advisor platform is targeted for growth by 2028, with positive reception to improvements made [56] - The RBC ratio is currently at a satisfactory level, with no immediate need for capital injection [57]

Financial Data and Key Metrics Changes - First quarter reported adjusted net earnings were $91 million or $0.72 per share, compared to $108 million or $0.86 per share in the first quarter of 2024, reflecting a decrease of $17 million primarily driven by margin compression and higher interest expense [24][26] - First quarter adjusted return on assets (ROA) was 68 basis points, pressured from near-term headwinds, while adjusted ROA on a last twelve-month basis decreased to 100 basis points from 106 basis points in the fourth quarter of 2024 [27] - Reported adjusted return on equity (ROE), excluding AOCI, was 9.7%, up 2.3% over the first quarter of 2024 [27] Business Line Data and Key Metrics Changes - F and G reported record assets under management (AUM) before flow reinsurance of $67.4 billion as of March 31, reflecting a 169% increase compared to the first quarter of 2024 [19] - Gross sales were $2.9 billion, a 17% decrease from the first quarter of 2024, primarily due to lower MYGA sales, while indexed annuity sales remained strong at $1.5 billion [19][20] - Pension risk transfer (PRT) sales were $311 million in the first quarter, down from $584 million in the first quarter of 2024, with funding agreements at $525 million compared to $105 million in the prior year [21] Market Data and Key Metrics Changes - The investment portfolio is well matched to the liability profile, with 96% of fixed maturities being investment grade, and credit-related impairments averaging six basis points over the last five years [10][11] - The portfolio's fixed income yield was 4.53% in the first quarter, a decrease of three basis points from the first quarter of 2024, reflecting the runoff of higher yielding in-force assets [12] Company Strategy and Development Direction - The company continues to diversify earnings between spread-based and fee-based sources, with a focus on optimizing return on capital and maintaining pricing discipline [17][29] - The owned distribution portfolio is expected to create value with double-digit annual growth of EBITDA over the medium term [17] - The company remains committed to achieving targets set during the 2023 Investor Day, focusing on managing sales and in-force profitability [29] Management's Comments on Operating Environment and Future Outlook - Management noted that near-term headwinds are believed to be temporary, with expectations for improvement throughout 2025 [6][7] - The company is focused on managing sales and in-force profitability to optimize return on capital, while navigating macroeconomic uncertainties [29] - Management expressed confidence in the resilience of the business model despite current market volatility [60] Other Important Information - The company has successfully completed capital markets activities, including issuing $375 million of junior subordinated notes and redeeming $300 million of senior notes [28][29] - The company ended the quarter with a GAAP book value attributable to common shareholders of $5.8 billion or $43.31 per share [29] Q&A Session Summary Question: Growth opportunity for the Ryla product - Management indicated that while MIGA sales declined due to market volatility, there has been a rebound in April, and they remain optimistic about the Ryla product's growth potential [32][34] Question: Impact of lower industry volume on own distribution - Management noted a rebound in own distribution in April and suggested that the slowdown was balanced between industry volume and investments in the platform [36][37] Question: Decision to raise common equity - Management clarified that the capital raised will be deployed thoughtfully into new business opportunities, maintaining a disciplined approach to pricing [40][41] Question: Cost of funds increase - Management acknowledged the sequential increase in the cost of funds and attributed it to lower surrender income and cash yield impacts, while maintaining pricing discipline [45][46] Question: MIGA sales rebound in April - Management confirmed that the rebound was largely due to internal factors and improved market conditions, emphasizing the profitability of the MIGA business [53][54] Question: RBC sensitivity to equity market volatility - Management reassured that there are no changes to RBC expectations and targets, maintaining a focus on being above 400% [69] Question: Performance of alternative investments - Management indicated that the direct lending portfolio performed well, while the LP portfolio came in lower than expectations, impacting overall yield [72][74]