Aegon : 3Q 2024 Trading Update Presentation

3Q 2024 Trading Update

Lard Friese	Duncan Russell
Chief Executive Officer	Chief Financial Officer

November 15, 2024

Key messages

• EUR 336 million operating capital generation1, now expecting FY 2024 operating capital generation of around EUR 1.2 billion
• Continued strong growth in UK Workplace and in third-party net deposits in Asset Management
• US Strategic Assets experience commercial volatility with lower new life sales and net outflows in retirement
• Lower new business volumes in Brazil and Spain & Portugal, and, as anticipated, net outflows in UK Adviser platform
• Completed institutionally owned universal life policy re- purchase program; policy terminations with negative impact on RBC ratio; program beneficial to operating capital generation
• Announcing a planned new share buyback program of EUR 150 million2, to start at the beginning of January 2025, and expected to conclude in the first half of 2025
• Cash Capital at Holding at EUR 1.5 billion, planning to reach the mid-point of the operating range by end of 2026

1. Before holding funding and operating expenses
2. Including the neutralization of around EUR 40 million shares issued for share-based compensation plans

Transamerica on track to deliver the strategy outlined at the 2023 CMD despite commercial volatility

Americas

Distribution

WFG licensed agents (number in thousand)

82

69

36

37

3Q23 3Q24 Multi-ticket agents

Transamerica's

63% market share in WFG1

Savings & Investments	Protection Solutions
Net deposits mid-sized plans	New individual life sales
(in USD billion)	(in USD million)
0.2		118	112

	-0.4
3Q23	3Q24	3Q23	3Q24
12.2 vs.+2.83Q23	IRA AuA2
11.6 vs. 3Q23	Value AuM2
	+0.9	GA Stable

• New life sales decreased from WFG agents shifting focus to third- party annuity products sales
• Increasing number of new agents and implemented new activation and training programs for new recruits
• Net outflows in mid-sized Retirement Plans driven by higher withdrawals from increase in equity markets and contract discontinuances
• Continuing to diversify revenue streams by growing asset volumes in IRA and GA Stable Value

1. Transamerica's market share in the WFG wholly owned insurance agency in the US for Life products

3 2. AuA = Assets under Administration; AuM = Assets under Management; IRA = Individual Retirement Account; GA = General Accou nt; in USD billion, at the end of 3Q 2024

Rising platform assets under administration in the UK, benefiting from Workplace and favorable markets

UK

Workplace platform	Adviser platform
net deposits	net deposits
(in GBP million)	(in GBP million)

Platform assets under administration

(in GBP billion)

865

98

50

112

61

Workplace

▪ Maintaining strong momentum in

the Workplace platform with

growing inflows from new and

existing schemes

▪ Adviser platform continues to be

impacted by elevated withdrawals

and ongoing consolidation in

non-target segments

(379)

3Q23 3Q24

(903)

3Q23

(916)

3Q24

49

52

Adviser

3Q23 3Q24

▪ Growing assets under

administration on the platform

mainly from favorable markets

4

Lower new business volumes in International

International

(in EUR million)

New life sales

79

P&C and A&H new premium	Operating capital generation
production

▪ Lower new life sales in Brazil

reflecting higher interest rates and

6

65

6

a strong prior year quarter

▪ New life sales in China increased

ahead of a regulatory pricing

49

34

14

17

27 25

47

37

change

▪ In Spain, slowing sales for health

and protection products, partly

offset by higher sales linked to

consumer loans

▪ Operating capital generation

10 8

3Q23 3Q24

3Q23

3Q24

3Q23

3Q24

decreased from non-recurring

benefits in 3Q 2023

Spain & Portugal

China

Brazil

TLB and others

International segment

5

Strong third-party net deposits in Asset Management

Aegon Asset Management

(in EUR billion)

3rd-party net deposits	Net deposits
Global Platforms	Strategic Partnerships

Assets under management

▪ Strong net deposits in Global

Platforms third-party business

mainly from strong fund

2.8

1.2

0.3

1.2

295

57

238

324

62

262

Strategic Partnerships

Global Platforms

performance in alternative fixed

income, including from our

partnership with a.s.r., and from

net deposits in the UK retirement

business

▪ Higher net deposits in Strategic

Partnerships mainly from inflows in

money market funds in China

▪ Assets under management

increased due to favorable

3Q23

3Q24

3Q23

3Q24

3Q23 3Q24

markets and third-party net

deposits

6

3Q 2024 Trading Update

Duncan Russell

Chief Financial Officer

3Q 2024 trading update

(in EUR million)

Operating	Free cash		Cash Capital	Gross
capital		flow		at Holding	financial
generation1						leverage
336	80	1,484		5,041
-5%	+1%	(606)		(81)
	compared with 3Q 2023			compared with 1H 2024

8 1. Excluding holding funding and operating expenses of EUR (73) million; total operating capital generation is EUR 263 million in 3Q 2024

Capital positions of main units remained above operating levels

US RBC ratio1

435%	at the end of
	3Q 2024
-11%-pts 1H 2024
	vs. the end of

UK Solvency II ratio2

186%	at the end of
	3Q 2024
-2%-pts 1H 2024
	vs. the end of

• 16%-ptsone-time negative impact from termination of a portfolio of universal life policies previously bought from institutional owners; 8%-pts benefit expected in 4Q 2024 after associated equity funding is repaid
• 11%-ptsone-time negative impact mainly from restructuring and a contribution to the US own employee pension plan
• Market movements had a 3%-pts positive impact due to favorable equity markets, only partly offset by lower interest rates
• Operating capital generation contributed 12%-pts to the ratio
• Positive contribution from operating capital generation
• More than offset by negative impacts from market movements and a model refinement

9	1. US RBC ratio relates to the US insurance entities; operating level is 400% and the minimum dividend payment level is 350%
2. UK Solvency II ratio refers to the UK Solvency II ratio of Scottish Equitable plc; operating level is 150% and the minimum dividend payment level is 135%

EUR 336 million operating capital generation in 3Q; increasing the guidance to around EUR 1.2 billion for 2024

Operating capital generation before holding funding and operating expenses

(in EUR million)

354

16

47

56

236

336

33

37

58

208

Asset Management International

United Kingdom

Americas

-5%

354

336

388	+10%
	425

171	-47%	91
-205 -12%	-180

Earnings on in-force

Release of required

New business strain

• Earnings on in-force increased from growth in US Strategic Assets and in Aegon Asset Management
• Lower release of required from additional investments in the US and a one-time benefit in the prior year quarter in the UK
• Lower new business strain driven by International and UK, offset by higher new business strain in the US from continued growth in Retirement Plans
• Based on favorable performance in the first three quarters, increasing the 2024 full-year guidance to around EUR 1.2 billion

3Q23

3Q24

3Q23

3Q24

10