Business Context and Reporting Period
Company: Aegon Ltd.
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Second Half (2H) 2025 and Full Year 2025
Date of Filing: February 19, 2026
Aegon Ltd. reported its financial results for the second half and full year of 2025. The company is an international financial services holding company with operations in the Americas, United Kingdom, and International markets, alongside a global asset management business. Aegon announced a strategic decision to relocate its head office and legal seat to the United States, with the holding company to be renamed Transamerica Inc. upon completion by January 1, 2028.
Key Financial Metrics
| Metric | 2H 2025 | 2H 2024 | Full Year 2025 |
|---|---|---|---|
| Operating Result | EUR 858 million | EUR 776 million | EUR 1.7 billion |
| Net Result | EUR 375 million | EUR 741 million | EUR 980 million |
| Operating Capital Generation (OCG) (Before holding funding/expenses) |
EUR 711 million | EUR 658 million | EUR 1.3 billion |
| Free Cash Flow | EUR 388 million | EUR 385 million | EUR 829 million |
| Valuation Equity per Share | EUR 9.06 | N/A | N/A |
| Group Solvency Ratio | 184% | N/A | N/A |
| US RBC Ratio | 424% | N/A | N/A |
Material Changes vs. Prior Period
- Net Result Decline: The 2H 2025 net result decreased 49% to EUR 375 million compared to EUR 741 million in 2H 2024. This decline was driven by non-operating items and other charges, despite an 11% increase in the operating result.
- Operating Growth: The operating result increased 11% in 2H 2025 and 15% for the full year 2025, driven by commercial momentum across all business units and favorable financial markets.
- Capital Generation: Full-year 2025 OCG of EUR 1.3 billion exceeded the target of EUR 1.2 billion. Free cash flow of EUR 829 million was consistent with the target of approximately EUR 800 million.
- Shareholder Returns: Aegon returned EUR 1.1 billion to shareholders in 2025 through dividends and share buybacks. A final dividend of EUR 0.21 per share was proposed, bringing the full-year total to EUR 0.40.
- Strategic Assets: In the Americas, new Individual Life sales increased 49% in 2H 2025. The World Financial Group (WFG) agent network grew to over 95,000 licensed agents.
Guidance, Outlook, and Risks
Management Commentary and Outlook
CEO Lard Friese highlighted that Aegon met or exceeded all financial targets set at the 2023 Capital Markets Day. The company aims to grow its operating result run-rate by around 5% per annum from the 2025 level of EUR 1.5–1.7 billion. OCG after holding funding and operating expenses is targeted to grow 0–5% per annum, and free cash flow is expected to increase by around 5% per annum through 2027. Dividend growth is targeted at more than 5% per annum.
Strategic Developments
- Relocation: Aegon plans to relocate its head office and legal seat to the US by January 1, 2028, renaming the holding company Transamerica Inc.
- UK Review: A strategic review of Aegon UK is underway, evaluating all options including potential divestment.
- Reinsurance: A reinsurance transaction covering 30% of the face value of Transamerica's Secondary Guarantee Universal Life (SGUL) block was executed to reduce mortality and policyholder behavior risk.
Risks and Contingencies
- Market Volatility: Results are sensitive to financial market performance, interest rates, and currency exchange rates (EUR/USD, EUR/GBP).
- Regulatory and Legal: Risks include changes in solvency requirements (Bermuda, Solvency II, US RBC), litigation settlements, and regulatory actions.
- Operational Execution: Uncertainty regarding the timing and impact of the US relocation and the outcome of the UK strategic review.
- Investment Risks: Exposure to credit defaults, equity market declines, and counterparty creditworthiness.
Investor Verification Checklist
- Non-Operating Charges: Verify the specific composition of the EUR 326 million in non-operating items and EUR 110 million in other charges that reduced the net result in 2H 2025.
- US Relocation Timeline: Confirm the regulatory approval status and projected costs associated with the move of the legal seat to the US by 2028.
- UK Divestment: Monitor the progress of the strategic review of Aegon UK and any potential impact on valuation or capital structure.
- SGUL Reinsurance Impact: Assess the long-term capital relief and risk reduction benefits from the SGUL reinsurance transaction versus the immediate capital injection required.
- Dividend Sustainability: Evaluate the ability to maintain the >5% annual dividend growth target given the proposed EUR 0.40 full-year payout and ongoing capital return programs.