Life insurer and asset manager Aegon has released its financial results for the second half of 2024, reporting a net profit of EUR 741 million and 14% improvement in its operating result, to EUR 776 million, compared to the same period the year prior.
According to the firm, the increase in the operating result reflects improved experience variance in the US and business growth in the US and asset management.
Operating capital generation before holding funding and operating expenses remained stable at EUR 658 million compared to the second half of 2023. The company confirmed it met its increased full-year guidance of EUR 1.2 billion for 2024.
Aegon’s main operating units maintain capital ratios above required operating levels. Cash Capital at Holding reached EUR 1.7 billion at year-end 2024.
The company also completed a EUR 200 million share buyback program in December.
Shareholders’ equity per share increased by 13% to EUR 4.53 compared with June 30, 2024. The contractual service margin per share, after estimated tax adjustment, rose by 5% to EUR 4.38.
Lard Friese, Aegon CEO, commented: “In 2024, we continued to make good progress with our transformation and are on track to meet the 2025 targets we laid out at our 2023 Capital Markets Day (CMD).
“We have delivered on both our increased guidance for operating capital generation (OCG) of EUR 1.2 billion, and on our free cash flow guidance of more than EUR 700 million for 2024. Our main business units remained well capitalized, and we have generated a full year IFRS operating result of EUR 1.5 billion. Our valuation equity per share, which is a measure of shareholder value, increased by 12% to EUR 8.91.”
Friese highlighted Aegon has executed its growth strategy, improving customer service, as well as the roll out of a new brand identity across its fully owned units – which will facilitate improved digital customer experiences -, in H2 2024.
In the Americas, the World Financial Group’s (WFG) agent growth fuelled a 22% increase in Transamerica’s distribution segment operating result to $191 million.
Transamerica’s Individual Life sales were slightly down at $473 million, while Retirement Plans saw outflows but mid-sized plans grew. Additionally, Aegon reduced its Financial Assets exposure, including early completion of our universal life policy repurchase program.
In the United Kingdom, UK Workplace platform performed strongly, Friese noted, with £3.7 billion in net deposits, while the Adviser platform is being restructured for growth by 2028.
Asset Management returned to growth with third-party net deposits in Global Platforms and net deposits in Strategic Partnerships combined totaling around EUR 14 billion. International business saw 15% lower new life sales, with the value of new business growing 18%, driven by Brazil and Spain & Portugal.
Friese concluded: “Over the year, we remained disciplined in our management of capital. During the first half of 2024, we completed the EUR 1.535 billion share buyback program. In the second half, we completed a EUR 200 million share buyback program and announced a new EUR 150 million share buyback program, which began in January 2025.
“On the basis of our 2024 performance, we today propose a final dividend of 19 eurocents per share. This will result in a total dividend paid for the full-year 2024 of 35 eurocents, up 17% compared with 2023, and means we are on our way to achieve our target of around 40 eurocents per share over 2025.
