Business Context and Reporting Period
Company: Aegon Ltd.
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Third Quarter 2025 (ended September 30, 2025)
Release Date: November 13, 2025
Aegon Ltd., an international financial services holding company domiciled in Bermuda with its principal place of business in the Netherlands, reported its third-quarter 2025 trading update. The company operates primarily in the United States (Transamerica), the United Kingdom (Scottish Equitable), and through international joint ventures and asset management platforms.
Key Financial Metrics
- Operating Capital Generation (OCG): EUR 340 million before holding funding and operating expenses (up 1% vs. 3Q24); EUR 274 million after holding funding and operating expenses.
- Total Capital Generation: EUR 625 million, driven by one-time items of EUR 530 million (including EUR 700 million from the sale of a.s.r. shares) and market impacts of EUR (179) million.
- Cash Capital at Holding: EUR 1.9 billion (EUR 1,880 million) as of September 30, 2025.
- Free Cash Flow: EUR 76 million.
- Capital Ratios:
- US RBC Ratio: 425% (Operating level: 400%).
- Solvency UK Ratio: 188% (Operating level: 150%).
- Share Buyback Program: 54% completion of the EUR 400 million program.
Material Changes vs. Prior Period
- Americas (Transamerica):
- Individual Life sales increased 39% year-over-year, driven by a new digital underwriting platform and agent productivity.
- World Financial Group (WFG) licensed agents increased 12% to 92,519.
- Retirement Plans gross deposits rose 11% to USD 7.5 billion, though net outflows persisted at USD 1.6 billion (an improvement from USD 13.5 billion in 3Q24).
- Long-Term Care (LTC) approved premium rate increases reached USD 822 million, exceeding the 2023 target of USD 700 million.
- United Kingdom:
- Net outflows of GBP 1.8 billion were driven by the departure of two large, low-margin schemes in the Workplace platform.
- Total Assets under Administration (AuA) grew 8% to GBP 237.2 billion, primarily due to market movements.
- Asset Management:
- Third-party net deposits decreased 82% to EUR 494 million compared to 3Q24, though Global Platforms saw positive inflows in fixed income.
- Total Assets under Management (AuM) increased 1% to EUR 327.2 billion.
- International:
- New life sales decreased 7% overall, with declines in China offsetting growth in Brazil and Spain & Portugal.
Guidance, Outlook, and Management Commentary
- Full-Year Targets: Management remains on track to meet all 2025 financial targets, including a full-year OCG target of EUR 1.2 billion.
- Strategic Initiatives:
- Redomiciliation Review: Aegon is reviewing a potential relocation of its legal domicile and head office to the United States. Results will be announced at the Capital Markets Day on December 10, 2025.
- Share Buyback: The EUR 400 million buyback program is expected to be completed by December 15, 2025.
- Variable Annuities: Expanded the dynamic hedge program to cover 25% of the base contracts to reduce equity market sensitivity.
- Risks and Contingencies:
- Forward-looking statements are subject to risks including changes in interest rates, currency exchange rates (EUR/USD, EUR/GBP), and regulatory changes.
- Uncertainty regarding the outcome and timing of the potential US redomiciliation.
- Exposure to financial market volatility and credit quality of investment portfolios.
Investor Verification Checklist
- Verify the final outcome and timeline of the potential legal domicile relocation to the United States (announced Dec 10, 2025).
- Confirm the completion status and final cost of the EUR 400 million share buyback program by December 15, 2025.
- Monitor the sustainability of Retirement Plans net outflows in the US and the impact of large scheme discontinuances in the UK.
- Review the effectiveness of the expanded dynamic hedge program for Variable Annuities in mitigating equity market risk.
- Assess the impact of currency fluctuations (USD/EUR, GBP/EUR) on consolidated OCG and earnings on in-force.