Aegon has reported a 4% year-on-year increase in operating capital generation (OCG) before holding funding and operating expenses for the first quarter of 2025, reaching €267 million.
The insurer attributed the rise to business growth, though it noted that this was partially offset by adverse mortality experience in the United States.
The capital ratios for Aegon’s key business units remained above their respective operating thresholds during the period. As of March 31, 2025, the firm held €1.6 billion in cash capital at holding. This figure reflects the 68% completion of the company’s ongoing €150 million share buyback programme.
In line with its stated objective to reduce cash capital at holding to around €1.0 billion by the end of 2026, Aegon announced a new €200 million share buyback, expected to be finalised by year-end 2025.
It is worth noting that in November, Aegon cited an OCG of €336 million before holding funding and operating expenses, raising its full-year OCG guidance to around €1.2 billion from the prior estimate of €1.1 billion.
Cash capital at the holding level was €1.5 billion as of September 30, 2024, with expectations to reach the midpoint of the target range, approximately €1 billion, by the end of 2026.
The company cited ongoing commercial momentum in its US Strategic Assets, specifically in individual life and World Financial Group (WFG), as well as in the UK Workplace platform and International operations. However, it recorded net outflows in mid-sized US retirement plans and the UK Adviser platform. Third-party net flows in its asset management segment remained positive.
Aegon also addressed the upcoming shift to the Bermuda capital framework, which will be applicable from January 2028 following a transition period. The group solvency ratio under this framework is expected to be broadly in line with the ratio calculated under the current approach. A review of Aegon’s instruments by the Bermuda Monetary Authority has been concluded.
Lard Friese (pictured above), chief executive officer of Aegon, said the group continued to progress in transforming its operations during the quarter.
“While the macroeconomic environment is uncertain, we expect to meet our 2025 financial targets. Our businesses remain well capitalised, and we have significant excess liquidity at the holding,” he said.
The new €200 million share buyback, Friese noted, aligns with Aegon’s liquidity reduction strategy for the Holding.
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