Aegon, a Netherlands-headquartered multinational life insurance, pensions and asset management company, has released its trading update for the third quarter of 2023, stating operating capital generation, before holding funding and operating expenses, increased by 16% compared to the same period in 2023, reaching €354 million.
This growth can be attributed to business growth and improved underwriting variances.
All three main units of Aegon maintained capital ratios above their respective operating levels.
Transaction combining Aegon’s Dutch businesses with a.s.r. closed in July; and related €1.5 billion share buyback on track with 32% completed in third quarter and 45% per November 10, the company noted.
Cash Capital at Holding increases to €2.9 billion, driven by the proceeds from the a.s.r. transaction.
The company experienced strong sales growth in US Strategic Assets, and life insurance business in Brazil. Sales momentum in asset management and UK Retail businesses continues to be affected by challenging market conditions.
Aegon is reducing mortality risk in US Financial Assets via purchasing institutionally owned universal life policies.
“For the third quarter in a row, we saw continued commercial momentum in the US and strong overall operating capital generation which benefited from exceptional items. We expect the full-year 2023 operating capital generation from the units to be around EUR 1.2 billion; up from the previous guidance of more than EUR 1.0 billion. I am proud of what the teams have achieved so far and would like to express my gratitude to my colleagues for all of their hard work,” Lard Friese, Aegon CEO, commented.
“Our joint venture in Brazil, Mongeral Aegon Group, also delivered strong growth, with new life sales almost doubling to EUR 49 million compared with the year ago period. This follows our recent investment that increased Aegon’s economic ownership of Mongeral Aegon Group to almost 60%.”
“As we move to the fourth quarter, our continued commercial performance and operating capital generation provides Aegon with a solid basis as it continues with the next chapter of its transformation. And, while many things have recently changed in our company, our focus remains the same: delivering value to all of our customers, shareholders and other stakeholder,” Friese concluded.
