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    David Baumer • Bank of America

    David Baumer's questions to Aegon Ltd (AEG) leadership

    David Baumer's questions to Aegon Ltd (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 Ltd (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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