AEGON LTD. 2H 2023 Results
Lard Friese | Matt Rider |
Chief Executive Officer | Chief Financial Officer |
March 1, 2024
Delivering on Aegon's strategy
-
In 2H 2023, operating capital generation1 up 16% to EUR 660 million and to
EUR 1,280 million for the full-year, exceeding the initial guidance of EUR 1.0 billion - Operating result of EUR 681 million, down 32% due to the impact of previously executed management actions and one-time benefits in the prior year
- Shareholders' equity of EUR 4.27 per share, stable compared with 1H 2023
- Cash capital at Holding stands at EUR 2.4 billion which includes a reduction of financial leverage to target level, and progress in the EUR 1.5 billion share buyback program; as of February 23, 2024, the program is 76% complete
- Sustaining commercial momentum in US Strategic Assets, UK Workplace, and Brazil
- Full-yeardividend of EUR 0.30 per share, in line with the 2023 dividend target, and up 30% compared with 2022
2 1. Before holding funding and operating expenses
Building distribution capacity at WFG
US - World Financial Group (WFG)
Licensed agents
(number in thousand) 74
63 | |
FY22 | FY23 |
Multi-ticket agents
(number in thousand)
32 | 36 |
FY22 | FY23 |
Transamerica's market share in WFG1
(in %)
62% | 64% |
FY22 | FY23 |
- Continued recruiting and training efforts increased number of licensed agents
- Improved productivity reflected in increase of multi-ticket agents
- Increased Transamerica's market share in WFG by delivering a consistent service experience and products tailored to the middle market
3 1. Transamerica's market share in the WFG wholly owned insurance agency in the US for US Life products
Driving significant growth in US Individual Life
US - Individual Life
(in USD million)
New life sales | New business strain |
Earnings on in-force1
431 | 486 |
FY22 | FY23 |
303 | 334 |
FY22 | FY23 |
664 | |
509 | |
FY22 | FY23 |
- 13% growth year-on-year of new life sales and a similar increase of new business strain, mainly from indexed universal life with an IRR above 12%
- 71% of Individual Solutions new life sales in 2023 generated by WFG
- Portfolio growth, mainly from strong sales in indexed universal life, drove increase in earnings on in-force
4 1. Individual Life excluding WFG and Universal Life
Leading in attractive Retirement segments
US - Retirement Plans
(in USD)
Written sales | Net deposits | GA Stable |
mid-sized plans | mid-sized plans | Value AuA1 |
(billion) | (billion) | (billion) | |||
10.1 | 11.1 | ||||
1.2 | |||||
6.7 | |||||
3.9 | |||||
-4.4 | |||||
FY22 | FY23 | FY22 | FY23 | FY22 | FY23 |
IRA | |
AuA1 | |
(billion) | |
10.4 | |
8.4 | |
FY22 | FY23 |
Earnings on | ▪ | Successful year for | |
in-force2 | written sales in mid-sized | ||
(million) | plans | ||
101 | ▪ | Net deposits on track for | |
sustained growth in | |||
80 | |||
mid-sized plans | |||
▪ | Diversifying revenue | ||
streams by growing GA | |||
Stable Value and IRA | |||
assets | |||
▪ | Lower earnings on | ||
FY22 | FY23 | in-force from higher | |
expenses |
1. AuA = Assets under Administration; GA = General Account; IRA = Individual Retirement Account
5 2. Retirement Plans excluding Single Premium Group Annuities (SPGA)
Growing the UK Workplace business, but a challenging environment for Retail
UK
(in GBP million)
Workplace net deposits
2,223 | 1,814 |
FY22 | FY23 |
Retail
net deposits
(877) | |
(3,058) | |
FY22 | FY23 |
Revenues gained / | ||
(lost) on net deposits | ||
(annualized) | ▪ | In Workplace, continued good |
momentum in winning new schemes, | ||
with lower net deposits reflecting | ||
departure of a single large client | ||
in 3Q 2023 | ||
▪ | Net outflows in Retail from reduced | |
(9.0) | customer activity | |
▪ | Annualized revenues lost mainly from | |
(15.6) | gradual run-off of traditional product | |
FY22 | FY23 | portfolio and net outflows in Retail |
6
Steady progress in growth markets
Growth markets
(in EUR million, International segment)
New life sales1
293 | |
248 | |
FY22 | FY23 |
P&C and A&H new premium production
117 | 134 |
FY22 | FY23 |
Operating capital generation2
103 | 112 |
FY22 | FY23 |
- New life sales increased in Brazil by 37% and in China by 19%, partly offset by lower sales in Spain
- Increased health new premium production partly offset by lower demand for funeral and household insurance in Spain & Portugal
- Higher operating capital generation from business growth and more favorable new business strain
7 | 1. Excludes new life sales for the Financial Asset TLB (Transamerica Life (Bermuda) Ltd.) of EUR 6 million and EUR 21 million | in 2022 and 2023, respectively |
2. Excludes operating capital generation for the Financial Asset TLB of EUR 93 million and EUR 66 million in 2022 and 2023, r | espectively |
Challenging environment for Asset Management
Aegon Asset Management
(in EUR million)
3rd-party net deposits | Net deposits | Operating capital |
Global Platforms | Strategic Partnerships | generation |
▪ In 2023, net outflows in 3rd-party |
business on the Global Platforms mainly |
from outflows of two large clients, partly |
offset by inflows in fixed income |
(621) |
(3,798) |
FY22 FY23
3,569 | 98 | ||
75 | |||
(2,727) | |||
FY22 | FY23 | FY22 | FY23 |
▪ | Net outflows in Strategic Partnerships |
resulting from low margin withdrawals in | |
the French joint venture and outflows in | |
China due to weak investor sentiment | |
▪ | Net outflows and negative impact of |
higher interest rates on assets under | |
management put pressure on operating | |
capital generation | |
▪ | Improving outlook based on the market |
conditions in the last months of 2023 |
8
2H 2023 Financial Results
Matt Rider
Chief Financial Officer
2H 2023 financial results
(in EUR and %, in million except per share data and solvency ratio)
Operating | Shareholders' | Operating | Free cash | Cash Capital | Gross | Group |
result | equity per | capital | flow | at Holding | financial | solvency |
share | generation1 | leverage | ratio | |||
681 | 4.27 | 660 | 429 | 2,387 | 5,064 | 193% |
-32% | +0.04 | +16% | +11% | +1,072 | (522) | -9%-pts |
vs. 2H 2022 | vs. 1H 2023 | vs. 2H 2022 | vs. 2H 2022 | vs. 1H 2023 | vs. 1H 2023 | vs. 1H 2023 |
10 1. Before holding funding and operating expenses
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AEGON NV published this content on 29 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2024 11:12:48 UTC.
