Aegon, a Netherlands-headquartered multinational life insurance, pensions and asset management company, has released its trading update for the first quarter of 2023, stating operating capital generation, before holding funding and operating expenses, increased by 5% compared to the same period in 2022, reaching €292 million.
This growth can be attributed to business expansion, an improvement in claims experience, and reduced expenses.
All three main units of Aegon maintained capital ratios above their respective operating levels, with the Group Solvency II ratio increasing to 210%.
As part of its ongoing €200 million share buyback program, Aegon repurchased shares, resulting in a decrease in Cash Capital at Holding to EUR 1.4 billion, which is still within the upper half of the operating range.
Aegon continues to make progress on its transformation agenda and remains on track for the anticipated closing of the transaction that will combine its Dutch businesses with a.s.r. in the second half of 2023.
The company experienced strong sales growth in various regions and business segments. Notably, the US Strategic Assets, UK Workplace business, and life insurance businesses in China and Brazil achieved significant sales momentum. However, challenging market conditions affected sales in Asset Management and UK Retail businesses.
Aegon has adjusted its reporting format to focus on selected key performance metrics, including operating capital generation, capital positions, and sales metrics, for the first and third quarters.
The company will report IFRS results for the first and second half-year to align with a.s.r.’s reporting cycle.
“Aegon has had a good start to the year. We delivered strong commercial growth and advanced our strategic priorities in the first quarter. I am pleased with the headway we are making despite persistent volatility in the financial markets,” CEO Lard Friese said.
