Aegon Ltd. 2025 Financial Condition Report Summary
Business Context and Reporting Period
This Form 6-K incorporates the Aegon Ltd. Financial Condition Report (FCR) for the period ending December 31, 2025, filed on May 20, 2026. Aegon is an international financial services group focused on life insurance, pensions, savings, and asset management. The Group is supervised by the Bermuda Monetary Authority (BMA) following its redomiciliation to Bermuda in 2023. Aegon operates in core markets (United States, United Kingdom) and growth markets (Spain & Portugal, China, Brazil).
Key Financial Metrics
| Metric | 2025 (EUR millions) | 2024 (EUR millions) |
|---|---|---|
| Net Result | 980 | 676 |
| Insurance Revenue | 9,097 | 9,841 |
| Operating Result | 1,702 | 1,485 |
| Eligible Own Funds | 11,901 | 14,030 |
| Solvency Capital Requirement (SCR) | 6,464 | 7,466 |
| Group Solvency Ratio | 184% | 188% |
| Cash Capital at Holding | 1,311 | 1,725 |
| Gross Financial Leverage | 4,900 | 5,200 |
Material Changes vs. Prior Period
- Profitability: Net result increased by 45% to EUR 980 million, driven by improved operating results and investment income, despite a decline in total insurance revenue.
- Capital Position: Eligible Own Funds decreased by EUR 2.1 billion, primarily due to shareholder returns (dividends and share buybacks totaling EUR 1.1 billion) and the impact of the Secondary Guarantee Universal Life (SGUL) reinsurance transaction. This was partially offset by the sale of a.s.r. shares.
- Solvency: The Group Solvency Ratio decreased 4 percentage points to 184%. The SCR decreased by EUR 1.0 billion, driven by a reduced stake in a.s.r. and market impacts.
- Strategic Transactions:
- Share Buybacks: Completed two programs in 2025 totaling EUR 550 million (EUR 150m and EUR 400m).
- a.s.r. Divestment: Sold 12.5 million shares of a.s.r. Nederland N.V. for EUR 700 million, reducing the stake from 29.96% to 24.12%.
- Reinsurance: Reinsured 30% of the SGUL portfolio face value, reducing capital employed by USD 0.3 billion.
Guidance, Outlook, and Risks
- Strategic Redomiciliation: Aegon plans to relocate its legal domicile to the United States, expected in January 2028. This will transition reporting from IFRS to US GAAP and shift the capital framework to US standards.
- UK Divestment: On April 15, 2026, Aegon announced the sale of Aegon UK to Standard Life for GBP 2.0 billion (cash and equity stake). The transaction is expected to close in late 2026 and is projected to reduce the Group Solvency ratio by 5 percentage points on a pro-forma basis.
- Capital Instrument Eligibility: Perpetual Cumulative Subordinated Bonds (PCSB) lost eligibility as Restricted Tier 1 capital on January 1, 2026. On a pro-forma basis, this reduces the solvency ratio by 7 percentage points. Junior Perpetual Capital Securities (JPCS) will transition to Tier 2 Ancillary Capital.
- Risk Profile: Key risks include market volatility (equity and interest rates), underwriting risks (mortality/longevity), and operational risks (cybersecurity, AI deployment). Aegon maintains a "low to medium" appetite for financial risk and "medium to high" for underwriting risk.
- Shareholder Returns: A new EUR 400 million share buyback program was announced for 2026, with EUR 227 million initiated in January 2026.
Investor Verification Checklist
- Verify the impact of the PCSB ineligibility on the 2026 solvency ratio (pro-forma reduction of 7% points).
- Monitor the progress and regulatory approval status of the Aegon UK sale to Standard Life and its effect on the Group's capital structure.
- Review the timeline and implications of the redomiciliation to the US (expected Jan 2028) and the transition to US GAAP reporting.
- Assess the effectiveness of the SGUL reinsurance and dynamic hedge expansion in stabilizing the US capital position.
- Confirm the execution of the 2026 share buyback program and its impact on cash capital at the holding level.