Aegon NYSE: AEG reported higher operating results, capital generation and free cash flow for the first half of 2026, citing commercial momentum across its U.S. businesses, favorable financial markets and improved claims experience.
Chief Executive Officer Lard Friese said operating results rose to 804 million, while operating capital generation increased to 416 million. Free cash flow totaled EUR 392 million, helping lift holding-company cash capital to EUR 1.7 billion.
The insurer increased its planned second-half share repurchases by EUR 150 million to EUR 350 million and declared an interim dividend of EUR 0.21 per share, up 11% from a year earlier.
Commercial Growth Led by U.S. Life Sales
Friese said Transamerica maintained strong commercial momentum during the period. World Financial Group surpassed 100,000 licensed agents, with more agents producing business and average premiums per policy rising. Life sales at the distribution business increased 5% year over year, while annuity sales grew 12%.
Individual life sales increased 54% in the first half. Friese attributed much of that growth to digitally enabled, instant-decision underwriting processes introduced for final-expense, indexed universal life and universal life products. He said the process reduced the time to complete paperwork and finalize a policy from several weeks to less than 12 minutes.
Chief Financial Officer Duncan Russell said the simplified-issue product is generating an internal rate of return above 12% and has an estimated payback period of about eight years on a fully cost-loaded basis.
In retirement plans, written sales remained strong, particularly in pooled plans. However, net deposits were negative because of a single contract termination following a client merger. Asset growth in IRA and stable-value products supported revenue diversification and raised return on assets to 10 basis points in the first half, Friese said.
International new life sales were broadly stable. Growth in Brazil, driven by demand for individual risk products, was offset by lower sales in China after product repricing.
Results, Capital Generation and Assumption Updates
Russell said operating results increased 9% from the prior-year period to 804 million, with higher results across the company’s units. Transamerica’s operating result was $756 million, up 14% in local currency after adjusting for the transfer of Transamerica Asset Management to Aegon Asset Management.
Transamerica benefited from higher distribution commissions, increased fees on assets under administration, expansion in stable-value margins and portfolio growth that supported contractual service margin release, Russell said. Financial assets also experienced materially more favorable variances than in the first half of 2025.
Aegon Asset Management posted third-party net inflows in its global platforms and strategic partnerships businesses. Its global platforms operating margin rose five percentage points to 20%, supported by lower expenses, higher revenues, favorable market movements and net inflows over the prior 12 months.
Net income was EUR 608 million, broadly in line with the prior year. The company released expected credit loss reserves after mortgage loans related to the Transamerica Pyramid complex in San Francisco were fully repaid, eliminating what Russell called a concentrated exposure in its commercial mortgage loan portfolio.
The company’s annual model and assumption review had a EUR 231 million after-tax impact on valuation equity. Russell said the predominant driver was updated assumptions on policyholder behavior, including variable annuity lapse and utilization assumptions and premium-payment behavior in life insurance products.
Operating capital generation rose 27% year over year. Growth in new life sales increased new-business strain, but Aegon offset part of that impact by repositioning certain savings and investments portfolios to a Bermuda subsidiary, improving capital efficiency, and by releasing EUR 43 million of required capital tied to the Pyramid mortgage repayment.
Russell said the company would continue to use available tools to manage capital generation if elevated sales volumes persist, including accelerating earnings on in-force portfolios. He added that Aegon has accepted higher new-business strain because it expects attractive returns from the sales growth.
Capital Position and U.S. Relocation
Aegon’s group solvency ratio stood at 169% at June 30, down from year-end 2025 primarily because perpetual cumulative subordinated bonds lost capital eligibility, according to Russell. The U.S. risk-based capital ratio declined four percentage points to 420%, which remained above the company’s 400% operating level.
Russell said market movements reduced the U.S. RBC ratio by 12 percentage points, reflecting factors not fully captured by the company’s single-shock sensitivity approach, including lagging private-equity performance, energy-related assets, fund basis risk and cross-asset effects in the variable annuities book.
The company remains committed to ending 2026 with roughly EUR 1 billion of holding-company cash capital. Aegon said proceeds from the planned sale of Aegon UK are still expected to be used for a combination of share repurchases and debt reduction.
Friese said Aegon’s planned relocation to the United States remains on schedule and within budget. The company has booked about 40% of the EUR 350 million in anticipated transition expenses. Shareholders are expected to vote on the relocation, governance amendments and a new omnibus equity plan at an extraordinary general meeting targeted for Oct. 8.
Aegon selected New York City as the location of its future head office. Friese said he plans to relocate there in January 2027, while Will Fuller will become Aegon’s president and chief operating officer in January 2027 in addition to remaining chief executive of Transamerica. The holding company is expected to adopt the Transamerica name when its legal seat moves to the U.S., which Friese said is expected in early 2028.
The company also announced that Russell will not relocate to the U.S. for personal reasons. Friese said Aegon has begun searching for a successor CFO, while Russell will remain through the transition, including the U.S. move, U.S. GAAP implementation and completion of the 2026 annual accounts.
About Aegon (NYSE:AEG)
Aegon N.V. is a multinational financial services company headquartered in The Hague, Netherlands, specializing in life insurance, pensions and asset management. Established in 1983 through the merger of AGO and Ennia, Aegon has built a reputation for offering retirement solutions, savings products and protection plans aimed at helping customers secure their financial futures. The company operates under well-known brands, including Transamerica in the United States, and serves both individual and corporate clients.
Throughout its history, Aegon has pursued strategic acquisitions and partnerships to strengthen its market position and broaden its service offerings.
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