Life Insurance Firm Aegon Trades Higher As Capital Ratios 'Remain Solid'

Aegon Ltd. AEG shares are trading higher on Friday.

In its third-quarter trading update, the company reported 336 million euros ($353.91 million) in operating capital generation and raised its full-year 2024 guidance to 1.2 billion euros, up from 1.1 billion euros.

Capital ratios for its main units remain solid, well above operating levels. A new 150 million euro share buyback program was announced, expected to be completed by mid-2025, which includes neutralizing shares issued for compensation plans.

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Cash capital at the holding level stood at 1.5 billion euros as of Sept. 30, with plans to reach 1 billion euros by 2026.

The company completed a program to purchase institutionally owned universal life policies, though terminated policies hurt the US RBC ratio by 16% points.

However, a recovery of 8% points is expected in the fourth quarter. Despite strong momentum in Asset Management and the UK Workplace platform, the U.S. Strategic Assets faced volatility, and the UK Adviser platform continues to struggle amid challenging market conditions.

Aegon's next strategic phase aims for operating capital generation of around EUR1.2 billion from its units and free cash flow of approximately 800 million euros by 2025.

The company also plans to increase its dividend per share to about 0.40, contingent on approvals and market conditions. Gross financial leverage is expected to remain around 5 billion euro.

Aegon will provide an update on its strategy and targets at its Capital Markets Day on Dec. 10, 2025.

Price Action: Aegon shares are trading higher by 1.89% to $6.46 at last check Friday.

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