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Investing.com -- Aegon (AS:AEGN) on Thursday reported a €606 million net profit for the first half of 2025, swinging from a loss a year earlier, and said it will double its share buyback to €400 million and raise its interim dividend 19% to €0.19 per share, sending the stock up over 6%.
The Dutch insurer’s operating result rose 19% to €845 million, supported by business growth in the United States and improved insurance experience.
The Americas contributed €627 million, up 23% from a year ago, while the United Kingdom (TADAWUL:4280) delivered €104 million and the International segment €99 million.
Free cash flow increased 18% to €442 million, compared with €373 million in the first half of 2024.
Operating capital generation before holding expenses slipped 2% to €576 million, reflecting higher new business strain and non-recurring items. After holding costs, capital generation was down 8% at €423 million.
Valuation equity, which includes shareholders’ equity and the contractual service margin after tax, decreased 6% to €13.3 billion, or €8.47 per share.
Aegon said unfavorable currency movements and capital returns offset the profit contribution. Shareholders’ equity rose 1% to €7.3 billion, or €4.64 per share.
Capital positions remained above operating levels. The U.S. risk-based capital ratio was estimated at 420% as of June 30, down from 443% at the end of 2024, while the U.K. Solvency II ratio stood at 185% compared with 186% at year-end.
The group solvency ratio fell to 183% from 188%, reflecting the dividend and buyback programs.
The company also launched a review on relocating its legal domicile and head office to the United States, where about 70% of its operations are based.
The review will assess the impact on stakeholders and consider making Aegon’s New York Stock Exchange listing its primary listing alongside Euronext (EPA:ENX) Amsterdam. The outcome is expected to be announced at its Capital Markets Day on Dec. 10.
In the United States, new life sales increased 13% to $276 million, supported by World Financial Group’s expanding agent network. Retirement plans generated $2.1 billion in net deposits, with account balances rising 5% over the year.
In the U.K., workplace deposits grew to £2.1 billion, while the adviser platform reported outflows. Assets under administration rose 4% to €226.2 billion.
International operations recorded a 3% increase in new life sales, led by Brazil, China, and Spain and Portugal.
In Brazil, growth came from credit and group life, while sales in China were supported by participating products.
Asset management added €2 billion in assets under management, bringing the total to €2.6 trillion, driven by alternative fixed income inflows and joint ventures in China and France.
The result before tax amounted to €733 million, compared with a loss of €83 million a year earlier.
Non-operating items contributed €95 million, mainly from hedge gains, while other charges totaled €207 million, largely from assumption updates in the Americas and Transamerica Life Bermuda. Aegon said it remains on track to meet its 2025 financial targets.