Aegon (NYSE:AEG) used its second-half 2025 results call to highlight progress against its strategy, reporting higher operating results and operating capital generation (OCG) year-over-year and reiterating its capital return plans, while management also discussed investment-driven margin pressure at World Financial Group (WFG), ongoing actions to reduce U.S. financial-asset exposure, and the status of strategic initiatives including a potential U.S. relocation and the strategic review of its U.K. business.
Full-year performance and capital returns
CEO Lard Friese said the company “either met or outperformed all our financial targets for 2025.” Operating capital generation before holding and funding expenses increased to EUR 1.3 billion, ahead of target, while operating results rose 15% versus 2024 to EUR 1.7 billion, reflecting business growth across units, favorable market impacts, and improved experience variances in the Americas and International businesses.
Second-half results: operating profit, solvency, and cash
CFO Duncan Russell said second-half operating results increased 11% year-over-year to EUR 858 million, with all businesses contributing higher results. Second-half OCG rose 8%, supported by strong figures from Transamerica, and free cash flow was EUR 388 million, with remittances from all units.
Cash capital at holding declined to EUR 1.3 billion at year-end 2025, which Russell attributed mostly to shareholder distributions (dividends and buybacks). Valuation equity per share increased by EUR 0.60, gross financial leverage was stable at EUR 4.9 billion, and the group solvency ratio stood at 184%. Russell also noted that the eligibility of perpetual cumulative subordinated bonds in Aegon’s capital stack ended as of January 1, 2026, and those instruments contributed 7 percentage points to the group solvency ratio as of December 31, 2025.
In discussing non-operating items under IFRS net results, Russell said non-operating items were unfavorable in the period largely due to realized losses on assets transferred as part of the SGUL reinsurance transaction. He said those losses were recorded in profit and loss but “were fully offset in other comprehensive income,” resulting in no impact on shareholders’ equity. He also cited net impairments driven by an expected credit loss (ECL) reserve increase from new investment purchases and “a small number of downgrades and defaults” in bond investments.
Americas growth: WFG, life sales, annuities, and retirement plans
Friese described continued commercial momentum in the U.S. Strategic Assets. At WFG, Aegon remains on track for a goal of roughly 110,000 licensed agents by 2027. Licensed agents totaled nearly 96,000 at year-end 2025, an 11% increase versus the prior year. Management said productivity initiatives increased the number of producing agents, with higher average policies and higher premiums per policy sold.
As a result, Aegon reported:
- New life sales up 10% versus 2024
- Annuity sales up 6%
- 13% increase in new life sales in its individual life business, with WFG productivity gains cited as a key driver
- 45% increase in indexed annuity net deposits in 2025, which management linked to higher gross deposits and improved wholesale distribution productivity
In retirement plans, the company reported net inflows in 2025 in its mid-sized retirement plans business, supported by pooled plan positioning and a large takeover deposit earlier in the year. Management also referenced growth in general account stable value and individual retirement accounts as it works to improve profitability and diversify revenue streams.
During Q&A, Russell addressed investor questions about WFG’s lower operating result in 2025, saying the lower margin came amid “very strong sales growth and also productivity growth,” but profitability was pressured by investments in leadership and governance, technology initiatives to strengthen sales processes, training to speed up productivity among newly licensed agents, and expanded compliance and field support.
U.K. strategic review, International trends, and asset management flows
In the U.K., Friese said Aegon remains well positioned in the Workplace platform business, with net deposits in 2025 driven by onboarding new schemes and members as well as contributions from existing schemes. However, the Adviser platform business saw net outflows in 2025, which management attributed to consolidation and vertical integration in non-target adviser segments. Friese reiterated that the strategic review of Aegon U.K. is ongoing and said the company expects to provide an update “somewhere before the summer.” He also clarified later in the call that the review pertains to the U.K. insurance business and platform business, but not the asset management office and business in the U.K.
In International, Friese said new sales continued to contribute to growth in 2025. Aegon’s Brazil joint venture reported higher new life sales, particularly in credit life products, and Spain and Portugal also posted higher new life sales. China new life sales were negatively impacted by product repricing to reflect new pricing regulations and the economic environment. Russell added that International operating results in the second half benefited from business growth and a one-time item in China, plus a true-up related to local IFRS 17 implementation booked in the second half.
Aegon Asset Management reported positive third-party net deposits in 2025 in both global platforms and strategic partnerships, although at a lower level than the prior year. Friese said fixed income products drove global platforms inflows, which more than offset outflows associated with the prior year’s SGUL reinsurance transaction, while strategic partnership deposits were driven by the Chinese joint venture AIFMC. Management also pointed to the expansion of CLO warehouse capacity in the U.S. and Europe as part of its plan to grow higher-margin third-party business.
Outlook and strategic priorities: U.S. relocation, legacy financial assets, and variances
Looking ahead, Russell reiterated guidance from the 2025 Capital Markets Day that Aegon aims to grow group operating result by around 5% per year over 2026-2027 from the EUR 1.5 billion to EUR 1.7 billion run rate in 2025, assuming a euro-dollar exchange rate of 1.20.
Management also discussed steps to reduce exposure to U.S. financial assets, highlighting the SGUL reinsurance transaction and the establishment of a reinsurer structure that Russell said provides more optionality. He said the company continues to pursue a “range of actions” to move from EUR 2.7 billion required capital toward its 2027 targets, including internal management actions, policyholder engagement, and potentially third-party actions.
On long-term care (LTC), Russell said the company evaluates third-party transactions based on economics and cash generation, but noted that LTC is a long-duration block with peak reserves not expected until “sometime in 2030,” making it sensitive to assumptions. He said Aegon has so far viewed itself as the appropriate owner of the block and manages the exposure through rate increases and other policyholder options.
On earnings volatility under IFRS, Russell said experience variances are expected and reiterated that the company provides an operating profit range of around EUR 100 million per half year (±EUR 50 million) that it believes should be sufficient to cover positive and negative variances from experience and onerous contracts.
Finally, Friese said preparations for Aegon’s proposed relocation to the U.S. are progressing, with U.S. GAAP implementation “still at an early stage” but moving as planned. The company also said it will next report results in August for the first half and will shift its conference call timing to 2:00 p.m. Central European time to accommodate U.S.-based investors.
About Aegon (NYSE:AEG)
Aegon N.V. is a multinational financial services company headquartered in The Hague, Netherlands, specializing in life insurance, pensions and asset management. Established in 1983 through the merger of AGO and Ennia, Aegon has built a reputation for offering retirement solutions, savings products and protection plans aimed at helping customers secure their financial futures. The company operates under well-known brands, including Transamerica in the United States, and serves both individual and corporate clients.
Throughout its history, Aegon has pursued strategic acquisitions and partnerships to strengthen its market position and broaden its service offerings.
