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    David Baumer

    Managing Director and Senior Equity Analyst at Bank of America

    David Baumer is a Managing Director and Senior Equity Analyst at Bank of America, specializing in research and analysis of publicly traded companies within the consumer and retail sectors. He covers prominent firms including Home Depot, Lowe’s, Target, and Walmart, where his recommendations have yielded above-average success rates and strong returns recognized by industry benchmarks. Baumer began his financial services career in the early 2000s and previously held key research positions at firms such as Morgan Stanley before joining Bank of America in 2012. He maintains FINRA Series 7 and Series 63 licenses, and has been recognized by platforms like TipRanks for his top-tier performance, frequently ranking in the upper percentile among equity analysts.

    David Baumer's questions to AEGON (AEG) leadership

    David Baumer's questions to AEGON (AEG) leadership • Q3 2024

    Question

    David Baumer from Bank of America questioned the two-year timeline for reducing holding cash, asking why it wasn't being acted on sooner and if it implied a tilt towards M&A. He also probed the 2025 OCG guidance, asking for expected new business strain, and inquired about the competitiveness and path to fixing flows in the U.S. retirement plans business.

    Answer

    CFO Duncan Russell framed the two-year timeline as an acceleration from the previous 2027 plan, emphasizing that any investment must offer better returns than shareholder distributions. He noted that while OCG benefits from markets, it faces drags from mortality updates and higher new business strain. CEO Lars Fraser added that U.S. retirement outflows were driven by two large, low-margin plan discontinuances and that written sales in the mid-market remain strong, expressing confidence in the business's growth path.

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    David Baumer's questions to AEGON (AEG) leadership • H1 2024

    Question

    David Baumer from Bank of America inquired about the impact of recent U.S. assumption changes on future back-book management actions, particularly for the Universal Life portfolio. He also asked what conditions would prompt Aegon to reduce its holding company cash towards the midpoint of its target range.

    Answer

    CFO Matt Rider stated the assumption updates were a best estimate reflection and would not directly impact future management actions. He confirmed the Universal Life book is a financial asset targeted for run-down, with actions like the Wilton Re deal and IOLI buybacks continuing. Regarding cash, he noted that after dividends and the current buyback, cash will be near the top of the target range, and any further reduction would be re-evaluated at year-end.

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