Aegon Ltd.'s 2025 Q2 Earnings Call: Unraveling the Contradictions in Fee Hedging, GAAP Compliance, and U.S. Growth Strategies

Variable annuity fee hedging strategy, U.S. GAAP implementation, equity sensitivity and RBC ratio management, U.S. GAAP implementation and redomiciliation impact, and U.S. business growth and strategic focus are the key contradictions discussed in Aegon Ltd.'s latest 2025Q2 earnings call.



Operating Results and Profitability Growth:
- Aegon reported an operating result of EUR 845 million, up 19% compared with the same period last year.
- The increase was driven by profitable business growth and less unfavorable claims experience in the U.S., U.K., and international segments.

Capital Generation and Shareholder Returns:
- Operating capital generation before holding and funding expenses amounted to EUR 576 million, decreasing by 2% over the same period.
- Aegon increased its interim dividend by EUR 0.03 to EUR 0.19 per common share and announced a EUR 200 million increase to its share buyback program.
- The company aims to reduce its cash capital at holding to around EUR 1 billion by the end of 2026.

U.S. Market Expansion and Potential Relocation:
- Aegon's strategic assets in the U.S. grew during the reporting period, accounting for approximately 70% of Aegon's operations.
- The company announced a review regarding the potential relocation of its head office to the U.S., aiming to align its legal domicile, tax residency, and regulatory framework with its primary market.
- The relocation is expected to simplify Aegon's corporate structure and facilitate closer cooperation between the holding and its main business unit.

Commercial Momentum and New Business Strain:
- Commercial momentum remains strong across key markets, leading to higher new life sales and net deposits.
- New business strain increased, especially in the U.S., mainly due to growth in strategic assets, which offset it partly by increased productivity in agents selling life insurance products.
- This growth contributed to an increase in Transamerica's market share in WFG U.S. life sales.