Aegon reports weak Q1 results, launches €200 mln share buyback

Investing.com -- Aegon (AS:AEGN) on Friday reported a softer-than-expected performance in the first quarter, though it sought to reassure investors with the announcement of a new €200 million share buyback program, set to be completed by the end of the year.

The Dutch insurer generated €267 million in operating capital for the quarter, falling short of analyst expectations. 

The company attributed the underperformance largely to unfavorable mortality and morbidity experience in the United States. 

Despite this, free cash flow came in €9 million ahead of expectations, supported by higher remittances in what is typically a seasonally light quarter. Cash capital at the holding company stood at €1.636 billion.

Aegon’s U.S. risk-based capital ratio was reported at 436%, also below expectations. The company explained this was primarily due to dividend payments made in advance to pre-finance the second-quarter 2025 remittance. In contrast, the UK solvency ratio came in at a healthier 189%.

Despite the weak quarterly performance, Aegon reaffirmed its full-year 2025 targets, including €1.2 billion in operating capital generation, €800 million in free cash flow, and a dividend per share of €0.40.

In the Americas, Individual Life new sales rose 7%, driven by growth in the World Financial Group and the brokerage channel. 

The World Financial Group also saw an increase in the number of licensed agents. However, Retirement Plans saw a 2% drop in gross deposits, as gains from large market contributions were outweighed by declines in mid-sized plans. Total (EPA:TTEF) assets under administration in Retirement Plans fell by 3%.

In the U.K., Aegon continued to see positive momentum in its Workplace platform, with net deposits increasing. This growth was attributed to the onboarding of a large new scheme and stronger regular contributions from existing plans. As a result, assets under administration in the UK saw an increase.

Internationally, new life sales grew by 11%, led by Brazil, where higher credit life sales contributed significantly. Spain and China also recorded growth in new life sales. 

Additionally, in April 2025, Transamerica Life Bermuda received regulatory approval to establish a representative office in Dubai, signaling further international expansion.

Meanwhile, Aegon’s Asset Management division posted a €11 billion increase in assets under management, mainly driven by strong third-party net deposits and favorable market conditions.