Nasib Ahmed

Nasib Ahmed asked about Aegon's strategy to further reduce its EUR 2.7 billion financial assets, including potential reinsurance transactions, and questioned the increased focus on IFRS in presentations, inquiring how U.S. GAAP might relate to IFRS or OCG.

Answer

CFO Duncan Russell highlighted the innovative SGUL reinsurance transaction that reduced required capital to EUR 2.7 billion, expressing confidence in reaching 2027 targets through various management, policyholder, and third-party actions. Regarding IFRS, Mr. Russell stated Aegon has always emphasized it, aiming to simplify communication with clear Capital Markets Day targets, and will update the market on U.S. GAAP implementation and eventual disclosure transition.

Nasib Ahmed asked if Aegon plans to further reduce its EUR 2.7 billion financial assets this year following the universal life deal, inquiring about any pipeline reinsurance transactions. He also questioned the increased emphasis on IFRS in presentations, the removal of the OCG bridge, and how U.S. GAAP might relate to OCG or IFRS.

Answer

CFO Duncan Russell confirmed Aegon continues to seek ways to reduce financial assets to 2027 targets through management actions, policyholder engagement, and potential third-party actions, expressing confidence in hitting targets and innovation in legacy blocks. He explained the IFRS emphasis is part of simplifying communication and that U.S. GAAP implementation is in early stages, with future disclosures transitioning over time.

Nasib Ahmed of UBS Group AG asked about the M&A outlook, including potential divestitures of financial assets and acquisitions, and how a U.S. re-domiciliation might influence this. He also questioned why the U.S. IFRS operating profit guidance was raised while the OCG guidance remained unchanged.

Answer

CEO Lard Friese stated that Aegon's disciplined M&A approach is unchanged but being physically located in their largest market would be beneficial. CFO Duncan Russell added that Aegon continues to evaluate all options for its financial assets. Regarding guidance, Mr. Russell explained the divergence is due to strong IFRS profit performance in H1, which is expected to continue, whereas OCG performed more in line with previous guidance. He highlighted that accounting differences, such as the treatment of new business growth, cause the metrics to move differently.

Nasib Ahmed of UBS Group questioned if further geographic exits were planned, the possibility of increasing ownership in the Malaysian business, and the timeline for operating variances to return to historical positive levels. He also asked about the spending pace of the $1 billion capability investment.

Answer

CEO Anil Wadhwani stated the Africa exits reflect capital discipline and that he could not comment on potential changes to the Malaysian ownership structure. CFO Ben Bulmer confirmed the goal is to return to historic positive variance levels by 2027, driven by underwriting improvements, claims management, and cost containment. Management also detailed the investment spending cadence through 2026.