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1. Company Snapshot

1.a. Company Description

Aegon N.V. provides insurance, pensions, and asset management services in the Americas, the Netherlands, and the United Kingdom.The company offers life, accident, and health insurance; savings, pension, annuities, and mutual funds; property and casualty insurance; retirement plans and individual retirement accounts; voluntary employee benefits; and stable value solutions.It also provides debt securities; mortgage loans; derivatives; reinsurance assets; other loans; money market and short-term investments; credit risk management; disability services; and digital banking solutions.


Aegon N.V. was founded in 1983 and is headquartered in The Hague, the Netherlands.

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1.b. Last Insights on AGN

Aegon N.V.'s recent performance was driven by a 19% increase in operating profit, fueled by strong commercial momentum and improved experience variance in the United States. The company's Aegon Americas division reported significant growth, prompting management to consider relocating the headquarters to the U.S. Aegon also raised its shareholder payout and surprised with an increase to its buyback program, which should benefit shareholders. Additionally, the company upgraded its six-month operating capital generation guidance for Aegon Americas to $650-750 million.

1.c. Company Highlights

2. Aegon's Strong Financial Performance

Aegon's operating result was EUR845 million, up 19% year-over-year, driven by profitable business growth and less unfavorable claims experience in the U.S., U.K., and International segments. The company's EPS came out at '0.28', beating analysts' estimates of '0.255'. This strong financial performance is also reflected in the company's revenue growth, with analysts estimating a 37.3% growth in revenues for next year. The company's operating capital generation before holding and funding expenses was EUR576 million, down 2% due to higher new business strain.

Publication Date: Aug -22

📋 Highlights
  • Operating Result Growth:: Aegon's operating result rose to EUR845 million (+19% YoY), driven by profitable business growth and improved claims experience in key regions.
  • Capital Generation Decline:: Operating capital generation before expenses fell to EUR576 million (-2%), primarily due to higher new business strain.
  • Strong Capital Position:: The company holds over EUR2 billion in cash capital and maintains a solvency ratio of 183%, reflecting robust financial health.
  • Dividend & Buyback Expansion:: Interim dividend increased to EUR0.19/share (+EUR0.03), and the share buyback program expanded to EUR400 million in H2 2025.
  • U.S. Relocation Review:: Aegon is evaluating relocating its headquarters to the U.S. (70% of operations) to align legal/tax/regulatory frameworks with its primary market.

Financial Highlights

The company's IFRS net results improved in the first half of 2025, with operating results at the top end of its guided range. Aegon's guidance for 2025 remains unchanged, with an expected operating result range of EUR750 million to EUR850 million. The company's cash capital holdings are over EUR2 billion, and its solvency ratio is 183%. The interim dividend was increased by EUR0.03 to EUR0.19 per common share, and a EUR200 million increase to its share buyback program was announced, which will total EUR400 million in the second half of 2025.

Valuation Metrics

Based on the company's valuation metrics, Aegon is trading at a P/E Ratio of 20.79, a P/B Ratio of 1.5, and a Dividend Yield of 5.11%. The company's EV/EBITDA is 3.28, and its Free Cash Flow Yield is 9.25%. Aegon's ROIC is 9757.81%, and its ROE is 7.59%. The Net Debt / EBITDA is 0.4. As an insurance company, Aegon's Price-to-Book Ratio (P/B) of 1.5 and Dividend Yield of 5.11% are key metrics to consider.

Business Performance

Aegon's commercial performance was strong in the first half of 2025, with higher new life sales and net deposits across key markets. The Americas segment saw a 13% increase in new life sales, driven by growth in strategic assets, while the U.K. and International segments also reported higher new life sales. According to Yves Cormier, "This concludes today's Q&A. For any remaining questions, please contact our Investor Relations team."

Future Outlook

The company's review of a potential relocation of its head office to the U.S. is ongoing, with a decision expected to be announced at its Capital Markets Day on December 10. Aegon's U.S. business accounts for approximately 70% of its operations, and the relocation would enable closer cooperation between the holding and its main business unit. The company's OCG guidance for 2025 remains around EUR1.2 billion, and it expects its current level of equities to support this guidance, along with stronger-than-expected business growth.

3. NewsRoom

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Aegon downgraded to Neutral at UBS on limited upside potential

Dec -04

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Aegon (ENXTAM:AGN): Evaluating Valuation After Recent Momentum and Growth Outlook

Nov -29

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Aegon evaluates selling operations outside the US

Nov -28

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Citi Raises Aegon (AEG) Price Target to EUR 7.69 and Reaffirms Buy Rating

Nov -20

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Is Aegon (AEG) Stock Outpacing Its Finance Peers This Year?

Nov -18

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Aegon trading update for third quarter 2025

Nov -13

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Aegon Ltd. (AMS:AGN) is largely controlled by institutional shareholders who own 38% of the company

Nov -06

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Aegon announces changes to its Board of Directors

Nov -03

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Life Insurance and Pensions

Expected Growth: 4.0%

Aegon N.V.'s 4.0% growth in Life Insurance and Pensions is driven by increasing demand for retirement savings, favorable regulatory changes, and strategic partnerships. Additionally, the company's expansion into emerging markets, digitalization of distribution channels, and focus on customer-centric products have contributed to this growth.

7. Detailed Products

Life Insurance

Aegon's life insurance products provide financial protection to individuals and families in the event of death or terminal illness.

Pensions and Retirement Plans

Aegon offers a range of pension and retirement plans to help individuals and employers save for retirement.

Investments and Asset Management

Aegon's investment and asset management services provide individuals and institutions with a range of investment options to grow their wealth.

Accident and Disability Insurance

Aegon's accident and disability insurance products provide financial protection to individuals in the event of unexpected accidents or illnesses.

Group Risk Insurance

Aegon's group risk insurance products provide employers with a range of insurance options to protect their employees.

Mortgage and Lending Services

Aegon's mortgage and lending services provide individuals and businesses with access to financing options for their property and business needs.

8. Aegon N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Aegon N.V. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand recognition and diversified product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

Aegon N.V. has a large customer base, but individual customers have significant bargaining power due to the availability of alternative products and services. This forces the company to maintain competitive pricing and high-quality services.

Bargaining Power Of Suppliers

Aegon N.V. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's scale and global presence also give it negotiating power in procurement.

Threat Of New Entrants

The insurance and asset management industries have high barriers to entry, including regulatory hurdles and significant capital requirements. This limits the threat of new entrants and allows Aegon N.V. to maintain its market position.

Intensity Of Rivalry

The insurance and asset management industries are highly competitive, with many established players competing for market share. Aegon N.V. must continually innovate and improve its products and services to maintain its competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.83%
Debt Cost 3.95%
Equity Weight 53.17%
Equity Cost 9.82%
WACC 7.07%
Leverage 88.09%

11. Quality Control: Aegon N.V. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Aviva

A-Score: 7.5/10

Value: 6.5

Growth: 5.4

Quality: 5.7

Yield: 9.4

Momentum: 9.0

Volatility: 9.3

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Ageas

A-Score: 7.3/10

Value: 5.9

Growth: 4.1

Quality: 7.5

Yield: 9.4

Momentum: 7.0

Volatility: 10.0

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UNIQA

A-Score: 7.1/10

Value: 6.3

Growth: 3.6

Quality: 6.2

Yield: 8.1

Momentum: 9.5

Volatility: 8.7

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Aegon

A-Score: 6.8/10

Value: 9.2

Growth: 2.1

Quality: 7.6

Yield: 7.5

Momentum: 7.0

Volatility: 7.7

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Gjensidige Forsikring

A-Score: 6.8/10

Value: 2.5

Growth: 4.2

Quality: 8.2

Yield: 7.5

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Baloise Holding

A-Score: 6.1/10

Value: 4.7

Growth: 1.6

Quality: 5.3

Yield: 8.1

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.76$

Current Price

6.76$

Potential

-0.00%

Expected Cash-Flows