Aegon : 2H 2023 Financial supplement

Financial Supplement 2H 2023

March 1, 2024

Financial Supplement 2H 2023

Table of contents (1/2)

Aegon Ltd.		Aegon Americas
Results overview	5	Results overview	20
Group operating result	6	Operating result	21
Market highlights	7	New business and account balances	22
New business	8	CSM roll forward	23
CSM roll forward	9	Individual Solutions - Life	24
Return on capital and equity	10	Individual Solutions - Accident & Health	25
Capital structure	11	Individual Solutions - Mutual Funds	26
Condensed consolidated statement of financial position	12	Individual Solutions - Variable Annuities	27
Revenue generating investments	12	Individual Solutions - Fixed Annuities	28
Investments by accounting method	13	Workplace Solutions - Life	29
Expected credit loss roll forward	13	Workplace Solutions - Accident & Health	29
Investments general account	14	Workplace Solutions - Retirement Plans	30
Corporate bonds and structured assets	14	Workplace Solutions - Stable Value Solutions	31
Capital ratios of main units	15	Investments general account	32
Group Solvency ratio	16	Corporate bonds and structured assets	32
(Operating) capital generation	17	Investments general account (II)	33
Cash capital at Holding	18	Investments general account (III)	34
		Investments general account (IV)	34

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Other corporate information

Public ratings Exchange rates

42

43

44

45

45

45

46

47

47

Assets under Management

Profit & Loss

Key figures Aegon Asset Management

36

36

37

38

39 Quarterly KPIs

40

Business update Americas

40

Business update United Kingdom Business update International Business update Asset Management Aegon Ltd. Main capital ratios

Aegon Ltd. (Operating) capital generation Americas (Operating) capital generation Aegon Ltd. Cash capital at Holding

Aegon Asset Management

Financial Supplement 2H 2023

Table of contents (2/2)

Aegon United Kingdom

Key figures Aegon United Kingdom

Key figures Scottish Equitable plc

Operating result

CSM roll forward

Assets under Administration

Investments general account

Corporate bonds and structured assets

Aegon International

Key figures Aegon International

Operating result

CSM roll forward

Key figures Spain & Portugal

Key figures China

Key figures Brazil

Key figures TLB

Investments general account

Corporate bonds and structured assets

49

50

50

52

53

54

55

56

57

57

58

60

61

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Financial Supplement 2H 2023

Aegon Ltd.

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Financial Supplement 2H 2023

Aegon Ltd.									unaudited
Results overview								amounts in millions
EUR
	2022		2023			Full Year
	First	Second	First	Second		2022	2023
	Half	Half	Half	Half
Americas			828			479			1,107
605		628	1,433
United Kingdom	93		118	111		103		211	214
International	87		115	95		100		202	196
Asset Management	117		75	74		71		193	145
Holding and other activities	(107)		(131)	(91)		(72)		(237)	(163)
Operating result	796		1,005	818		681		1,802	1,498
Fair value items	(16)		(202)	11		65		(218)	76
Realized gains/(losses) on investments	(135)		(345)	(95)		(564)		(481)	(659)
Net impairments	(84)		(38)	(96)		4		(122)	(92)
Non-operating items	(236)		(585)	(180)		(495)		(820)	(675)
Other income/(charges)	(550)		(1,265)	(870)		(270)		(1,815)	(1,140)
Of which the Netherlands / Aegon's stake in a.s.r.	(576)		(1,247)	(110)		155		(1,823)	45
Result before tax	11		(845)	(232)		(85)		(834)	(317)
Income tax	(46)		(110)	33		85		(156)	118
Net result	(35)		(954)	(199)		-		(990)	(199)
Interest on financial leverage classified as equity after tax	(16)		(20)	(24)		(24)		(36)	(48)
Net result after interest on financial leverage classified as equity	(51)		(974)	(223)		(24)		(1,026)	(247)
Addressable expenses ¹	1,219		1,203	1,222		1,298		2,422	2,519

1. Addressable expenses for all reporting periods are reported at constant currency at the FY 2023 weighted average foreign exchange rate.

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Financial Supplement 2H 2023

Aegon Ltd.									unaudited
Group operating result								amounts in millions
EUR
	2022		2023			Full Year
	First	Second	First	Second		2022	2023
	Half	Half	Half	Half
Operating result non-insurance business			260			219	513	458
254		239
Release of CSM	507		605	483		471	1,112	954
Release of Risk Adjustment	90		112	133		106	203	240
Experience variance on claims	(217)		(99)	(50)		(93)	(316)	(143)
Experience variance on expenses	10		30	(16)		(46)	41	(61)
Experience variance - other (i.e. premium/acquisition costs)	(6)		(32)	(45)		(31)	(38)	(76)
Onerous contracts	(64)		(94)	(70)		(91)	(159)	(161)
Premium Allocation Approach insurance service result	52		54	41		43	106	84
Other	20		21	30		31	42	61
Insurance service result	393		598	507		392	991	899
Insurance investment return on assets (incl. surplus assets, excl. SA assets)	1,470		1,737	1,697		1,638	3,207	3,336
Investment expenses on liabilities (net of reinsurance)	(1,121)		(1,370)	(1,419)		(1,393)	(2,491)	(2,812)
Insurance net investment result	349		367	279		245	716	524
Other insurance result	(81)		(98)	(112)		(109)	(179)	(220)
Operating result insurance business	661		867	674		529	1,528	1,202
Operating result holding companies and other	(118)		(122)	(95)		(67)	(240)	(162)
Operating result	796		1,005	818		681	1,802	1,498

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Financial Supplement 2H 2023

Aegon Ltd.									unaudited
Market highlights								amounts in millions
EUR								except per share data
	2022		2023			Full Year
	First	Second	First	Second		2022	2023
	Half	Half	Half	Half
Shares
Shares outstanding	2,023		1,976	1,926		1,752	1,976	1,752
Weighted average shares outstanding	2,034		2,012	1,947		1,836	2,024	1,891
Per share data
Operating result after tax and leverage allocation	0.32		0.37	0.34		0.30	0.68	0.64
Net result	(0.04)		(0.47)	(0.10)		0.01	(0.50)	(0.09)
Net result after leverage allocation	(0.05)		(0.48)	(0.12)		(0.00)	(0.52)	(0.12)
Dividends on common shares	0.11		0.12	0.14		0.16	0.23	0.30
Shareholders' equity	5.38		4.46	4.23		4.27	4.46	4.27
Contractual service margin after estimated tax adjustment	4.59		3.65	3.35		3.65	3.65	3.65

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Financial Supplement 2H 2023

Aegon Ltd.							unaudited
New business						amounts in millions
EUR
	2022		2023			Full Year
	First	Second	First	Second		2022	2023
	Half	Half	Half	Half
Americas	222	251	255	257	473	512
United Kingdom	14	12	10	-	26	10
International	123	130	175	139	253	314
New life sales (recurring plus 1/10 single)	359	393	441	395	752	836
New premium production accident & health insurance	92	70	85	77	162	162
New premium production property & casualty insurance	48	34	38	31	82	69
Americas	18,438	15,791	16,624	14,724	34,229	31,347
United Kingdom	5,157	4,793	10,282	6,360	9,949	16,642
International	307	353	154	359	660	513
Asset Management (Third-party and Strategic Partnerships only)	66,893	60,195	58,906	61,142	127,088	120,048
Gross deposits	90,795	81,132	85,965	82,585	171,926	168,550
Americas	(4,307)	(11,776)	(3,701)	(7,125)	(16,083)	(10,826)
United Kingdom	(1,196)	(1,569)	3,275	(3,215)	(2,765)	60
International	48	(20)	(112)	36	28	(77)
Asset Management (Third-party and Strategic Partnerships only)	3,060	(3,289)	(1,189)	(2,159)	(229)	(3,348)
Net deposits	(2,395)	(16,654)	(1,728)	(12,463)	(19,049)	(14,191)
New business value ¹
Americas	185	195	223	201	380	424
The Netherlands	12	8	-	-	19	-
United Kingdom	28	29	41	18	57	59
International	41	39	52	47	80	98
Group new business value	266	271	316	266	537	581
Americas	158	168	156	159	326	315
The Netherlands	12	8	-	-	19	-
United Kingdom	5	11	7	9	16	16
International (Spain & Portugal and TLB)	5	3	-	(3)	8	(3)
IFRS new business value ²	180	190	163	165	369	328
MCVNB - Americas (Retirement Plans)	27	27	67	42	54	109
MCVNB - United Kingdom (IFRS 9 pension business)	23	18	34	9	41	43
MCVNB - International (Spain & Portugal short-term insurance business,
China and Brazil)	36	37	52	49	73	101
MCVNB	86	81	152	100	167	253

1. New business value reflects the sum of the IFRS new business value and MCVNB.
2. IFRS new business value is calculated as the sum of the new business contractual service margin and new onerous contracts, after reinsurance (excluding retrospective impacts) and tax. The IFRS new business value for Americas and International in this table excludes the internal reinsurance of the universal life portfolio of TLB executed in 3Q 2022.

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Financial Supplement 2H 2023

Aegon Ltd.							unaudited
CSM roll forward						amounts in millions
EUR
	2022		2023			Full Year
	First	Second	First	Second		2022	2023
	Half	Half	Half	Half
CSM balance at beginning of period	11,841	11,882	9,128	8,302	11,841	9,128
New business	245	251	194	236	496	430
CSM release	(599)	(692)	(483)	(471)	(1,291)	(954)
Accretion of interest	105	153	126	111	258	237
Claims and policyholder experience variance	(232)	340	(163)	56	108	(107)
Non-financial assumption changes	(35)	32	(554)	272	(4)	(282)
Non-disaggregated risk adjustment	881	(78)	(107)	(256)	803	(364)
Market impact on unhedged risk of VFA products	(871)	6	345	355	(865)	700
Net exchange differences	590	(192)	(105)	(97)	398	(202)
Transfer to disposal groups	-	(2,515)	-	(26)	(2,515)	(26)
Other movements	(42)	(60)	(78)	(230)	(101)	(309)
CSM balance at end of period	11,882	9,128	8,302	8,251	9,128	8,251

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Financial Supplement 2H 2023

Aegon Ltd.					unaudited
Return on Capital per segment - YTD				amounts in millions
		December 31, 2023
	Americas	United	International	Asset	Weighted
	Kingdom	Management	Average
	(USD)	(GBP)	(EUR)	(EUR)	(EUR)
Operating result after tax	1,052	154	126	100
Closing capital in units	3,690	1,256	1,621	1,075
Average capital in units	3,500	1,328	1,950	943
Return on Capital
Operating result after tax / average capital in units	30.1%	11.6%	6.4%	10.6%	13.6%

Aegon Ltd.				unaudited
Group return on Equity			amounts in millions
EUR
	2022		2023
	First	Second	First	Second
	Half	Half	Half	Half
Operating result after tax	658	758	686	567
Interest on financial leverage classified as equity after tax ¹	(16)	(20)	(24)	(24)
Operating result after tax and after interest on financial leverage classified as equity	642	738	661	543
Average common shareholders' equity	11,204	9,918	8,456	7,682
Return on Equity
Operating result after tax and after interest on financial leverage classified as equity / average
common shareholders' equity	11.5%	14.9%	15.6%	14.1%
1. Includes coupons on perpetual capital securities.

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