David Barman's questions to Aegon Ltd (AEG) leadership • H2 2024
Question
David Barman asked for details on the moving parts supporting the reiterated 2025 Operating Capital Generation (OCG) guidance amid pressure in China, and about the significant increase in the US RBC ratio's equity sensitivity and potential mitigation strategies.
Answer
CFO Duncan Russell explained that the 2025 OCG guidance of €1.2 billion is based on the Q4 run-rate. Favorable performance in the US, UK, and Asset Management is offsetting weakness in the International segment, primarily a drag from China. Regarding RBC sensitivity, he attributed the increase to new tax positioning (DTA limits) and the flooring of variable annuity reserves under US statutory accounting, noting the high 443% ratio provides a substantial buffer.