Aegon : Presentation 1Q 2024

1Q 2024 Trading Update

Lard Friese	Matt Rider
Chief Executive Officer	Chief Financial Officer

May 16, 2024

Key messages

• EUR 256 million operating capital generation1, on track to meet the guidance of around EUR 1.1 billion for 2024
• Continued strong sales growth in US Strategic Assets, UK Workplace, and Brazil; positive third-party net flows in Asset Management; challenges in UK Retail
• Steady progress to reduce exposure to Financial Assets through ongoing management actions
• Cash capital at Holding stands at EUR 2.0 billion reflecting completion of 85% of the current share buyback program at the end of 1Q 2024
• Announcing a planned new share buyback program of EUR 200 million, to start at the beginning of July, and expected to conclude by the end of 2024

1. Before holding funding and operating expenses

Aligning Transamerica's reporting structure with strategy and business model

Moving from two to four business segments that are …

Transamerica's business segments

	Distribution			Savings &			Protection
			Investments			Solutions
▪	World Financial	▪	Mutual Funds		▪	Individual Life
	Group (WFG)	▪	Retirement Plans		▪	Individual Health
▪	Transamerica
▪	Stable Value		▪	Workplace Life
	Financial Advisors
		Solutions		▪	Workplace Health
						▪	Indexed Annuities
							(RILA, FIA)

Financial Assets

• Universal Life
• Long-TermCare
• Variable Annuities
• Fixed Annuities (incl. SPGA)

• fully aligned with Aegon's strategy …
• reflect the applicable accounting standard…
• and have a balanced earnings profile1

	Strategic Assets					Financial Assets
Commission-based	Asset-based			Insurance businesses,
business	business				applying IFRS 17
157	243	461	337

3 1. Operating result for FY 2023 in USD million

Transforming Transamerica into America's leading middle market life insurance and retirement company

Americas

Distribution

WFG licensed agents (number in thousand)

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

▪ Building distribution strength through

67

76

1.2	113	119
0.9

continued recruiting and training efforts

of licensed WFG agents

▪ Net deposits in mid-sized retirement

plans benefited from a large pooled plan

sale in 1Q23

33

37

1Q23 1Q24 Multi-ticket agents

Transamerica's

64% market share in WFG1

1Q23	1Q24	1Q23	1Q24
11.0	vs.+2.01Q23	IRA AuA2
11.3	vs. 1Q23	Value AuM2
	+0.8	GA Stable

▪	Continuing to diversify revenue streams
	by growing asset volumes in
	GA Stable Value and IRA
▪	5% growth year-on-year of new life
	sales, mainly from indexed universal life
	with an IRR above 12%

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

4 2. AuA = Assets under Administration; AuM = Assets under Management; GA = General Account; IRA = Individual Retirement Accou nt; in USD billion, at the end of 1Q 2024

Growing steadily in the UK Workplace business, but continued challenging environment for Retail

UK

(in GBP million)

Workplace net deposits

733

546

1Q23 1Q24

Retail

net deposits

(413)

(896)

1Q23 1Q24

Revenues gained / (lost) on net deposits

(annualized)

(2,6)

(4,6)

1Q23 1Q24

• In Workplace, continued solid level of inflows from new and existing schemes
• Net outflows in Retail from continuing reduced customer activity
• Annualized revenues lost mainly from gradual run-off of traditional product portfolio and net outflows in Retail

5

Lower new business volumes in International from pricing regulations and higher interest rates

International

(in EUR million)

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

▪ Continued growth in Brazil with new life

86

73

33 29

35

27

	sales increasing by 22%
▪	Lower new life sales in China (-32%)
	from impact of pricing regulations and in
	Spain (-34%) from impact of higher
	interest rates
▪	Lower demand for mortgages drives
	lower sales for new household
	insurance in Spain
▪	Lower operating capital generation due

1Q23

1Q24

1Q23

1Q24

1Q23

1Q24

to asset mix changes in China

6

Improving flows in Asset Management

Aegon Asset Management

(in EUR million)

3rd-party net deposits	Net deposits	Operating capital
Global Platforms	Strategic Partnerships	generation

▪ Improved net deposits in 3rd-party

2.604

(367)

43

2.091

17

(1.259)

	business on the Global Platforms mainly
	from fixed income assets in the UK and
	also from the partnership with a.s.r.
▪	Increased net deposits in Strategic
	Partnerships mainly from inflows in
	money market funds in China
▪	Operating capital generation increased
	driven by a non-recurring expense
	benefit related to a government

1Q23

1Q24

1Q23

1Q24

1Q23

1Q24

7

guideline in China

1Q 2024 Trading Update

Matt Rider

Chief Financial Officer

1Q 2024 trading update

(in EUR million)

Operating capital	Free cash	Cash Capital	Gross
generation1	flow	at Holding	financial leverage

256	14	1,961	5,101
-12%	-70%	(427)	+37
vs. 1Q 2023	vs. 1Q 2023	vs. 2H 2023	vs. 2H 2023

9 1. Excluding holding funding and operating expenses of EUR (66) million; total operating capital generation is EUR 191 million in 1Q 2024

Capital positions of main units remaining above operating levels

US RBC ratio1

441% at the end of

1Q 2024

+9%-pts vs. the end of

2H 2023

UK Solvency II ratio2

192% at the end of

1Q 2024

+5%-pts vs. the end of

2H 2023

• Operating capital generation contributed 6%-pts to the ratio, and more than offset a remittance to an intermediate holding company
• Market movements had a 6%-pt positive impact primarily due to favorable equity markets
• Positive contribution from operating capital generation
• One-timeitems had a positive impact on the ratio

10	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%