Aegon’s trading update for the first quarter 2023
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- Operating capital generation before holding funding and operating expenses increases by 5% compared with the first quarter of 2022 to
EUR 292 million . This reflects business growth, an improvement in claims experience, and lower expenses - The capital ratios of all three main units remain above their respective operating levels; Group Solvency II ratio increases to 210%
- As a result of the repurchase of shares related to the ongoing
EUR 200 million share buyback program,Cash Capital at Holding decreases toEUR 1.4 billion , which is in the upper half of the operating range - Continued progress on transformation agenda; on track for the closing of the transaction to combine Aegon’s Dutch businesses with a.s.r. in the second half of 2023
- Strong sales growth in US Strategic Assets,
UK Workplace business, and life insurance businesses inChina andBrazil . Sales momentum in Asset Management andUK Retail businesses affected by challenging market conditions
As previously announced,
Statement of
“Aegon has had a good start to the year. We delivered strong commercial growth and advanced our strategic priorities in the first quarter. I am pleased with the headway we are making despite persistent volatility in the financial markets.
We have made good progress with preparations for the closing of the transaction to combine Aegon’s Dutch businesses with a.s.r. Thanks to the commitment and hard work of our colleagues, we remain on course to close the transaction in the second half of this year.
During the first quarter, we continued to reallocate capital to those businesses where we can build leading positions
and generate attractive returns. We sold our Protection business in the
We delivered strong sales growth in all of our US Strategic Assets, and in our life insurance businesses in
Against a backdrop of persistent volatility in the financial markets, we maintained a strong balance sheet with
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Financial calendar 2023
Annual General Meeting –
Capital Markets Day –
First half 2023 results –
Trading update third quarter 2023 –
About
Local currencies and constant currency exchange rates
This document contains certain information about Aegon’s results, financial condition and revenue generating investments presented in USD for the
Forward-looking statements
The statements contained in this document that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: aim, believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, goal, should, would, could, is confident, will, and similar expressions as they relate to
- Unexpected delays, difficulties, and expenses in executing against our environmental, climate, diversity and inclusion or other “ESG” targets, goals and commitments, and changes in laws or regulations affecting us, such as changes in data privacy, environmental, safety and health laws;
- Changes in general economic and/or governmental conditions, particularly in
the United States ,the Netherlands and theUnited Kingdom ; - Civil unrest, (geo-) political tensions, military action or other instability in a country or geographic region;
- Changes in the performance of financial markets, including emerging markets, such as with regard to:
- The frequency and severity of defaults by issuers in Aegon’s fixed income investment portfolios;
- The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities
Aegon holds; - The effects of declining creditworthiness of certain public sector securities and the resulting decline in the value of government exposure that
Aegon holds; - The impact from volatility in credit, equity, and interest rates;
- Changes in the performance of Aegon’s investment portfolio and decline in ratings of Aegon’s counterparties;
- Lowering of one or more of Aegon’s debt ratings issued by recognized rating organizations and the adverse impact such action may have on Aegon’s ability to raise capital and on its liquidity and financial condition;
- Lowering of one or more of insurer financial strength ratings of Aegon’s insurance subsidiaries and the adverse impact such action may have on the written premium, policy retention, profitability and liquidity of its insurance subsidiaries;
- The effect of the European Union’s Solvency II requirements and other regulations in other jurisdictions affecting the capital
Aegon is required to maintain; - Changes affecting interest rate levels and low or rapidly changing interest rate levels;
- Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates;
- Changes affecting inflation levels, particularly in
the United States ,the Netherlands and theUnited Kingdom ; - Changes in the availability of, and costs associated with, liquidity sources such as bank and capital markets funding, as well as conditions in the credit markets in general such as changes in borrower and counterparty creditworthiness;
- Increasing levels of competition, particularly in
the United States ,the Netherlands , theUnited Kingdom and emerging markets; - Catastrophic events, either manmade or by nature, including by way of example acts of God, acts of terrorism, acts of war and pandemics, could result in material losses and significantly interrupt Aegon’s business;
- The frequency and severity of insured loss events;
- Changes affecting longevity, mortality, morbidity, persistence and other factors that may impact the profitability of Aegon’s insurance products;
- Aegon’s projected results are highly sensitive to complex mathematical models of financial markets, mortality, longevity, and other dynamic systems subject to shocks and unpredictable volatility. Should assumptions to these models later prove incorrect, or should errors in those models escape the controls in place to detect them, future performance will vary from projected results;
- Reinsurers to whom
Aegon has ceded significant underwriting risks may fail to meet their obligations; - Changes in customer behavior and public opinion in general related to, among other things, the type of products
Aegon sells, including legal, regulatory or commercial necessity to meet changing customer expectations; - Customer responsiveness to both new products and distribution channels;
- As Aegon’s operations support complex transactions and are highly dependent on the proper functioning of information technology, operational risks such as system disruptions or failures, security or data privacy breaches, cyberattacks, human error, failure to safeguard personally identifiable information, changes in operational practices or inadequate controls including with respect to third parties with which we do business may disrupt Aegon’s business, damage its reputation and adversely affect its results of operations, financial condition and cash flows;
- The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Aegon’s ability to complete, or obtain regulatory approval for, acquisitions and divestitures, integrate acquisitions, and realize anticipated results, and its ability to separate businesses as part of divestitures;
- Aegon’s failure to achieve anticipated levels of earnings or operational efficiencies, as well as other management initiatives related to cost savings,
Cash Capital at Holding, gross financial leverage and free cash flow; - Changes in the policies of central banks and/or governments;
- Litigation or regulatory action that could require
Aegon to pay significant damages or change the wayAegon does business; - Competitive, legal, regulatory, or tax changes that affect profitability, the distribution cost of or demand for Aegon’s products;
- Consequences of an actual or potential break-up of the European monetary union in whole or in part, or the exit of the
United Kingdom from theEuropean Union and potential consequences if otherEuropean Union countries leave theEuropean Union ; - Changes in laws and regulations, particularly those affecting Aegon’s operations’ ability to hire and retain key personnel, taxation of
Aegon companies, the productsAegon sells, and the attractiveness of certain products to its consumers; - Regulatory changes relating to the pensions, investment, and insurance industries in the jurisdictions in which
Aegon operates; - Standard setting initiatives of supranational standard setting bodies such as the Financial Stability Board and the
International Association of Insurance Supervisors or changes to such standards that may have an impact on regional (such as EU), national or US federal or state level financial regulation or the application thereof toAegon , including the designation ofAegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII); - Changes in accounting regulations and policies or a change by
Aegon in applying such regulations and policies, voluntarily or otherwise, which may affect Aegon’s reported results, shareholders’ equity or regulatory capital adequacy levels; - Changes in ESG standards and requirements, or Aegon’s ability to meet its sustainability and ESG-related goals, or related public expectations; and
- We may also rely on third-party information in certain of our disclosures, which may change over time as methodologies and data availability and quality continue to evolve. These factors, as well as any inaccuracies in third-party information we use, including in estimates or assumptions, may cause results to differ materially and adversely from statements, estimates, and beliefs made by us or third-parties. Moreover, our disclosures based on any standards may change due to revisions in framework requirements, availability of information, changes in our business or applicable governmental policies, or other factors, some of which may be beyond our control. Additionally, we may provide information that is not necessarily material for
SEC reporting purposes but that is informed by various ESG standards and frameworks (including standards for the measurement of underlying data), internal controls, and assumptions or third-party information that are still evolving and subject to change.
This document contains information that qualifies, or may qualify, as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation (596/2014). Further details of potential risks and uncertainties affecting
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