AEG

Aegon Ltd. 1H 2026 Financial Summary

Business Context and Reporting Period

This Form 6-K incorporates Aegon Ltd.'s press release dated August 20, 2026, reporting financial results for the first half of 2026 (1H 2026). Aegon is an international financial services holding company currently executing a strategic transformation to become a leading US life insurance and retirement group. Key strategic developments include the announced sale of Aegon UK to Standard Life, the selection of New York City as the future head office, and preparations for redomiciliation to the US, with an Extraordinary General Meeting targeted for October 8, 2026.

Key Financial Metrics

Material Changes vs. Prior Period

• Operating Performance: Operating result grew 9% driven by strong commercial momentum in Transamerica (Americas) and favorable financial markets. Americas operating result increased 3% (10% in local currency), while International grew 24% and Asset Management grew 44%.
• Sales Growth: Transamerica Individual Life sales surged 54% year-over-year, fueled by the instant decision market and World Financial Group (WFG) agent network, which surpassed 100,000 licensed agents.
• Capital Generation: OCG increased 27% to EUR 416 million, driven by business growth and favorable claims experience in the US. However, Free Cash Flow decreased 11% primarily because Aegon UK remittances are now excluded following the sale announcement.
• Balance Sheet: Valuation equity increased to EUR 14.0 billion, incorporating an estimated EUR 1.2 billion equity accretion from the Aegon UK sale. Shareholders' equity decreased slightly to EUR 7.3 billion due to capital distributions (dividends and buybacks) offset by net results.
• One-Time Items: Other charges totaled EUR 160 million, largely driven by a EUR 294 million charge in the Americas from annual model and assumption reviews (policyholder behavior and mortality updates) and restructuring costs related to the US redomiciliation.

Guidance, Outlook, and Risks

Revised Financial Ambitions (2026-2027): Following the Aegon UK divestment, Aegon updated its run-rate targets:

• Operating Result: Expected to grow ~5% annually from a pro forma 2025 run-rate of EUR 1.3–1.5 billion.
• OCG: Expected to grow 0–5% annually from a pro forma 2025 run-rate of EUR 0.7–0.75 billion.
• Free Cash Flow: Expected to grow ~5% annually from a pro forma 2025 run-rate of EUR 0.68 billion (excluding UK remittances).
• Dividend: Targeting growth in excess of 5% per annum.

Capital Actions: Aegon increased its share buyback program by EUR 150 million to a total of EUR 350 million for the second half of 2026, aiming to reduce Cash Capital at Holding to approximately EUR 1.0 billion by year-end.

Risks and Contingencies:

• Redomiciliation: Risks include failure to obtain regulatory approvals, inability to realize anticipated benefits, or disruption to operations during the transition to US GAAP and Delaware incorporation.
• Market Volatility: Exposure to interest rate changes, equity market declines, and credit spreads, which impacted the Group solvency ratio and fair value items.
• Assumption Changes: Ongoing sensitivity to policyholder behavior (lapses, withdrawals) and mortality/morbidity assumptions, which recently resulted in significant charges.
• Transaction Execution: The sale of Aegon UK is subject to customary conditions and regulatory approvals, with closing expected around the end of 2026.

Key Investor Verification Points

• Redomiciliation Timeline: Verify the status of the Extraordinary General Meeting scheduled for October 8, 2026, and the progress of US GAAP implementation.
• Aegon UK Sale Completion: Monitor regulatory approvals and the final closing date of the GBP 2.0 billion sale to Standard Life.
• Capital Return Execution: Track the completion of the EUR 350 million share buyback program and the resulting reduction in Cash Capital at Holding.
• Assumption Review Impact: Assess the long-term impact of the EUR 294 million charge related to policyholder behavior and mortality updates on future profitability.
• Transamerica Growth Sustainability: Evaluate whether the 54% growth in Individual Life sales is sustainable and how it impacts new business strain versus long-term OCG targets.