Aegon, a Netherlands-headquartered multinational life insurance, pensions and asset management company, released its trading update for the first quarter of 2023, stating that operating capital generation, before holding funds and operating expenses, increased by 5% compared to in the same period in 2022, reached €292 million.
This growth can be attributed to business expansion, improved acquisition experience, and reduced costs.
All three of Aegon’s main units maintained capital ratios above their respective operating levels, with the Group Solvency II ratio rising to 210%.
As part of its ongoing €200 million share buyback program, Aegon bought back shares, resulting in a reduction of the Holding’s Cash Capital to EUR 1.4 billion, which is still within the upper half of the operating range.
Aegon continues to advance its transformation agenda and remains on track for the expected closing of the transaction that will combine its Dutch businesses with asr in the second half of 2023.
The company experienced strong sales growth in various regions and business segments. In particular, US Strategic Assets, UK Workplace business, and life insurance businesses in China and Brazil achieved significant sales momentum. However, challenging market conditions affected sales of the Asset Management and UK Retail businesses.
Aegon adjusted its reporting format to focus on selected performance metrics, including operating capital generation, capital positions, and sales metrics, for the first and third quarters.
The company will report IFRS results in the first and second half of the year to align with the asr reporting cycle.
“Aegon started the year well. We delivered strong commercial growth and advanced our strategic priorities in the first quarter. I am pleased with the progress we are making despite continued volatility in the financial markets,” said CEO Lard Friese.