Aegon reports third quarter 2022 results

Please click on right here to entry all 3Q 2022 results associated paperwork.

The Hague, November 10, 2022 – Maintaining excessive tempo in implementing Aegon’s technique

• Net lack of EUR 206 million pushed primarily by a non-economic loss on rate of interest hedges within the US
• Operating results of EUR 429 million, which is a lower of 11% on a relentless forex foundation in contrast with the third quarter of 2021. Benefits from expense financial savings, development initiatives, and an enchancment in claims expertise are greater than offset by decrease charges on account of opposed markets
• The capital ratios of all three most important models stay above their respective working ranges. Group Solvency II ratio quantities to 212%
• Cash Capital at Holding decreases to EUR 1,368 million, reflecting EUR 273 million dividends paid and second EUR 100 million tranche of beforehand introduced EUR 300 million share buyback
• Transamerica Life Bermuda (TLB), Aegon’s high-net-worth business, reinsured a closed life insurance portfolio with Transamerica in October. This frees up surplus capital and strengthens Transamerica’s capital place
• Aegon takes motion to considerably scale back the capital sensitivity of its US variable annuity portfolio to fairness markets and additional enhance the predictability of free money flows; a third-party transaction is not going to be pursued within the near-term

Statement of Lard Friese, CEO
“In recent months, we have made great strides in the transformation of Aegon and the acceleration of our strategy. We have made substantial progress on our operational improvement plan, and have taken additional actions to maximize the value of both our US variable annuity book and TLB, Aegon’s high-net-worth insurance business. Most recently, we announced a transaction with a.s.r. in the Netherlands to create a leading Dutch insurance company.

In the third quarter, our operating result declined by 11% on a constant currency basis as adverse market conditions more than offset an improvement in claims experience in the United States, expense savings and the benefit from growth initiatives. Despite inflationary headwinds, we made considerable progress with our expense savings program. We achieved additional EUR 50 million expense savings compared with last quarter, increasing the reduction in our annual addressable expenses to EUR 300 million compared with the base year 2019. The growth initiatives, aimed at improving our customer service and expanding our distribution network, positively impacted our commercial and financial results.

We also made solid progress on our ambition to grow our strategic assets, despite continued financial market volatility and political unrest. Life insurance sales were up 24% in the United States and 16% in our Growth Markets, supported by our growing distribution capabilities. The retirement businesses across the United States, the Netherlands and the United Kingdom all reported growth in net deposits, reflecting the strength of the labor market. Commercial results in Asset Management, the UK Retail business and our US mutual fund platform were under pressure as a result of our customers’ reduced propensity to invest in the current uncertain environment.

We continue to take actions to maximize the value of our financial assets. Based on extensive analysis, we have concluded that the best option with respect to the US variable annuity portfolio is to continue to own and actively manage it, at least in the near term. In October, we finalized an internal reinsurance transaction between TLB and Transamerica that freed up USD 600 million in excess capital for Transamerica. Part of this will be used to create a buffer that will substantially reduce the capital sensitivity of our US variable annuity book to equity markets.

The recent action we have taken to combine our Dutch pension, life and non-life insurance, banking, and mortgage origination activities with those of a.s.r., is pivotal to the transformation of our company and reflects our goal to build advantaged businesses in our chosen markets. The transaction enables us to accelerate the return of capital to shareholders and is in line with our strategy to release capital from mature businesses, and create leading positions in markets where Aegon is well positioned for growth.

I appreciate the hard work and dedication of all our colleagues to support our customers’ needs in challenging times. Thanks to the efforts of our employees, we are able to continue to improve our operational performance and accelerate our strategy. While economic volatility will likely persist, our strong balance sheet, disciplined risk management, and focused strategy make me confident about the opportunities the future will bring.”    

Note: All comparisons on this launch are towards 3Q 2021, except acknowledged in any other case. See web page 7 of the complete press launch for key efficiency indicators.
                                                                       

Additional data

Presentation
The convention name presentation is accessible on aegon.com as of seven.30 a.m. CET.

Supplements
Aegon’s 3Q 2022 Financial Supplement and different supplementary paperwork can be found on aegon.com.

Conference name together with Q&A
The convention name begins at 9:00 am CET, with an audio webcast on aegon.com. To be part of the convention name and/or take part within the Q&A, you have to to register by way of the next registration hyperlink. Directly after registration you’ll obtain an e-mail with the decision particulars and a private pin to enter the convention name. 

Two hours after the convention name, a replay will likely be accessible on aegon.com.

Click to affix
With ‘Call me’, there is no such thing as a have to dial-in. Simply click on the next registration hyperlink and choose the choice ‘Call me’.
Enter your data and you may be referred to as again to straight be part of the convention. The hyperlink turns into lively quarter-hour previous to the scheduled begin time. Should you would like to not use the ‘click to join’ operate, dial-in numbers are additionally accessible:

Dial-in numbers for convention name
United States: +1 864 991 41 03 (native)
United Kingdom: +44 808 175 15 36 (toll-free)
The Netherlands: +31 800 745 83 77 (toll-free)

Passcode: you’ll obtain a private pin upon registration 

Financial calendar 2022 / 2023
IFRS 9/17 Educational Webinar – December 14, 2022
Fourth quarter 2022 results – February 9, 2023
First quarter 2023 results – May 17, 2023
Annual General Meeting – May 25, 2023
Second quarter 2023 results – August 17, 2023
Third quarter 2023 results – November 16, 2023

About Aegon

Aegon is an built-in, diversified, worldwide monetary providers group. The firm gives funding, safety, and retirement options, with a strategic deal with three core markets (the United States, the United Kingdom, and the Netherlands), three development markets (Spain & Portugal, Brazil, and China), and one world asset supervisor.

Aegon’s function of Helping individuals stay their greatest lives runs via all its actions. As a number one world investor and employer, the corporate seeks to have a constructive affect by addressing important environmental and societal points, with a deal with local weather change and inclusion & variety.

Aegon is headquartered in The Hague, the Netherlands, and listed on Euronext Amsterdam and the New York Stock Exchange. More data could be discovered at aegon.com.

Cautionary be aware concerning non-EU-IFRS measures
This doc consists of the next non-EU-IFRS monetary measures: working consequence, revenue tax, consequence earlier than tax, market constant worth of recent business, return on fairness and addressable bills. These non-EU-IFRS measures, aside from addressable bills, are calculated by consolidating on a proportionate foundation Aegon’s joint ventures and related firms. The reconciliation of those measures, aside from market constant worth of recent business and return on fairness, to essentially the most comparable EU-IFRS measure is supplied within the notes to this press launch. Market constant worth of recent business shouldn’t be primarily based on EU-IFRS, that are used to report Aegon’s major monetary statements and shouldn’t be considered as an alternative to EU-IFRS monetary measures. Aegon might outline and calculate market constant worth of recent business in a different way than different firms. Return on fairness is a ratio utilizing a non-EU-IFRS measure and is calculated by dividing the working consequence after tax much less price of leverage by the common shareholders’ fairness excluding the revaluation reserve. Operating bills are all bills related to promoting and administrative actions (excluding commissions) after reallocation of declare dealing with bills to advantages paid. This consists of sure bills recorded in different expenses, together with restructuring expenses. Addressable bills are bills mirrored within the working consequence, excluding deferrable acquisition bills, bills in joint ventures and associates and bills associated to operations in CEE nations. Aegon believes that these non-EU-IFRS measures, along with the EU-IFRS data, present significant supplemental details about the working results of Aegon’s business together with perception into the monetary measures that senior administration makes use of in managing the business.

Local currencies and fixed forex alternate charges
This doc comprises sure details about Aegon’s results, monetary situation and income producing investments introduced in USD for the Americas and in GBP for the United Kingdom, as a result of these companies function and are managed primarily in these currencies. Certain comparative data introduced on a relentless forex foundation eliminates the results of modifications in forex alternate charges. None of this data is an alternative to or superior to monetary details about Aegon introduced in EUR, which is the forex of Aegon’s major monetary statements.

Forward-looking statements
The statements contained on this doc that aren’t historic information are forward-looking statements as outlined within the US Private Securities Litigation Reform Act of 1995. The following are phrases that determine such forward-looking statements: intention, consider, estimate, goal, intend, might, anticipate, anticipate, predict, challenge, relying on, plan, proceed, need, forecast, objective, ought to, would, might, is assured, will, and comparable expressions as they relate to Aegon. These statements might include details about monetary prospects, financial situations and tendencies and contain dangers and uncertainties. In addition, any statements that consult with sustainability, environmental and social targets, commitments, targets, efforts and expectations and different occasions or circumstances which are partially depending on future occasions are forward-looking statements. These statements aren’t ensures of future efficiency and contain dangers, uncertainties and assumptions which are troublesome to foretell. Aegon undertakes no obligation, and expressly disclaims any obligation, to publicly replace or revise any forward-looking statements. Readers are cautioned to not place undue reliance on these forward-looking statements, which merely mirror firm expectations on the time of writing. Actual results might differ materially and adversely from expectations conveyed in forward-looking statements on account of modifications attributable to numerous dangers and uncertainties. Such dangers and uncertainties embrace however aren’t restricted to the next:

• Unexpected delays, difficulties, and bills in executing towards our environmental, local weather, variety and inclusion or different “ESG” targets, targets and commitments, and modifications in legal guidelines or rules affecting us, resembling modifications in knowledge privateness, environmental, security and well being legal guidelines;
• Changes generally financial and/or governmental situations, notably within the United States, the Netherlands and the United Kingdom;
• Civil unrest, (geo-) political tensions, army motion or different instability in a rustic or geographic area;
• Changes within the efficiency of monetary markets, together with rising markets, resembling with regard to:         
  • The frequency and severity of defaults by issuers in Aegon’s mounted revenue funding portfolios;
  • The results of company bankruptcies and/or accounting restatements on the monetary markets and the ensuing decline within the worth of fairness and debt securities Aegon holds;
  • The results of declining creditworthiness of sure public sector securities and the ensuing decline within the worth of presidency publicity that Aegon holds;
• Changes within the efficiency of Aegon’s funding portfolio and decline in rankings of Aegon’s counterparties;
• Lowering of a number of of Aegon’s debt rankings issued by acknowledged ranking organizations and the opposed affect such motion might have on Aegon’s skill to boost capital and on its liquidity and monetary situation;
• Lowering of a number of of insurer monetary energy rankings of Aegon’s insurance subsidiaries and the opposed affect such motion might have on the written premium, coverage retention, profitability and liquidity of its insurance subsidiaries;
• The impact of the European Union’s Solvency II necessities and different rules in different jurisdictions affecting the capital Aegon is required to take care of;
• Changes affecting rate of interest ranges and persevering with low or quickly altering rate of interest ranges;
• Changes affecting forex alternate charges, specifically the EUR/USD and EUR/GBP alternate charges;
• Changes within the availability of, and prices related to, liquidity sources resembling financial institution and capital markets funding, in addition to situations within the credit score markets generally resembling modifications in borrower and counterparty creditworthiness;
• Increasing ranges of competitors within the United States, the Netherlands, the United Kingdom and rising markets;
• Catastrophic occasions, both artifical or by nature, together with by means of instance acts of God, acts of terrorism, acts of struggle and pandemics, might lead to materials losses and considerably interrupt Aegon’s business;
• The frequency and severity of insured loss occasions;
• Changes affecting longevity, mortality, morbidity, persistence and different components which will affect the profitability of Aegon’s insurance merchandise;
• Aegon’s projected results are extremely delicate to advanced mathematical fashions of monetary markets, mortality, longevity, and different dynamic methods topic to shocks and unpredictable volatility. Should assumptions to those fashions later show incorrect, or ought to errors in these fashions escape the controls in place to detect them, future efficiency will differ from projected results;
• Reinsurers to whom Aegon has ceded important underwriting dangers might fail to satisfy their obligations;
• Changes in buyer habits and public opinion generally associated to, amongst different issues, the kind of merchandise Aegon sells, together with authorized, regulatory or industrial necessity to satisfy altering buyer expectations;
• Customer responsiveness to each new merchandise and distribution channels;
• As Aegon’s operations assist advanced transactions and are extremely depending on the right functioning of knowledge expertise, operational dangers resembling system disruptions or failures, safety or knowledge privateness breaches, cyberattacks, human error, failure to safeguard personally identifiable data, modifications in operational practices or insufficient controls together with with respect to third events with which we do business might disrupt Aegon’s business, injury its status and adversely have an effect on its results of operations, monetary situation and money flows;
• The affect of acquisitions and divestitures, restructurings, product withdrawals and different uncommon gadgets, together with Aegon’s skill to combine acquisitions and to acquire the anticipated results and synergies from acquisitions;
• Aegon’s failure to realize anticipated ranges of earnings or operational efficiencies, in addition to different administration initiatives associated to price financial savings, Cash Capital at Holding, gross monetary leverage and free money circulation;
• Changes within the insurance policies of central banks and/or governments;
• Litigation or regulatory motion that would require Aegon to pay important damages or change the way in which Aegon does business;
• Competitive, authorized, regulatory, or tax modifications that have an effect on profitability, the distribution price of or demand for Aegon’s merchandise;
• Consequences of an precise or potential break-up of the European financial union in entire or partially, or the exit of the United Kingdom from the European Union and potential penalties if different European Union nations go away the European Union;
• Changes in legal guidelines and rules, notably these affecting Aegon’s operations’ skill to rent and retain key personnel, taxation of Aegon firms, the merchandise Aegon sells, and the attractiveness of sure merchandise to its shoppers;
• Regulatory modifications referring to the pensions, funding, and insurance industries within the jurisdictions wherein Aegon operates;
• Standard setting initiatives of supranational customary setting our bodies such because the Financial Stability Board and the International Association of Insurance Supervisors or modifications to such requirements which will have an effect on regional (resembling EU), nationwide or US federal or state degree monetary regulation or the appliance thereof to Aegon, together with the designation of Aegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII); and
• Changes in accounting rules and insurance policies or a change by Aegon in making use of such rules and insurance policies, voluntarily or in any other case, which can have an effect on Aegon’s reported results, shareholders’ fairness or regulatory capital adequacy ranges.

This doc comprises data that qualifies, or might qualify, as inside data inside the which means of Article 7(1) of the EU Market Abuse Regulation (596/2014). Further particulars of potential dangers and uncertainties affecting Aegon are described in its filings with the Netherlands Authority for the Financial Markets and the US Securities and Exchange Commission, together with the Annual Report. These forward-looking statements converse solely as of the date of this doc. Except as required by any relevant legislation or regulation, Aegon expressly disclaims any obligation or enterprise to launch publicly any updates or revisions to any forward-looking statements contained herein to mirror any change in Aegon’s expectations with regard thereto or any change in occasions, situations or circumstances on which any such assertion is predicated.

• 20221110_PR Aegon_3Q 2022 results