Aegon Ltd.'s Q1 2025: Key Contradictions in Capital Strategy, China Rates, and Mortality Expectations

Capital reduction and share buybacks, impact of China interest rates on OCG, mortality experience and expectations, capital reduction strategy, and share buyback and capital return are the key contradictions discussed in Aegon Ltd.'s latest 2025Q1 earnings call.



Operating Capital Generation and Strategic Growth:
- Aegon reported operating capital generation before holding and funding expenses of €267 million in Q1 2025, driven by business growth in strategic assets.
- This growth was partly offset by unfavorable mortality experience in U.S. financial assets. The company remains confident in achieving its group financial targets for 2025.

Commercial Performance in the Americas:
- The number of licensed agents in World Financial Group increased by 16% to 88,000 in Q1 2025 compared to the same quarter last year.
- This growth was supported by higher activation rates and training programs, leading to a 66% increase in Transamerica's market share in WFG.
- New life sales increased in both WFG and the Protection Solutions business, driven by higher agent productivity and improvements in wholesale distribution.

International Business Expansion:
- Aegon's international segment saw an 11% year-over-year increase in new life sales, with notable growth in joint ventures in Brazil and China.
- The company's strategic partnerships experienced positive third-party net deposits in global platforms but faced net outflows in joint ventures due to withdrawals in China.

Capital Management and Share Buybacks:
- Aegon announced a new share buyback program of €200 million, set to commence in July and conclude by year-end, following a previous €150 million program.
- This initiative reflects the company's commitment to returning excess capital to shareholders, aiming to reduce cash capital at holding to around €1 billion by the end of 2026.