Dutch insurer Aegon has increased its annual capital generation forecast after exceeding expectations in the third quarter, driven by a strong performance in the crucial U.S. market. Aegon has been streamlining its corporate structure by selling off its Central and Eastern European businesses, while focusing on its U.S. operations, particularly through its Transamerica brand, which offers retirement solutions, investments, and life insurance.
The company now expects operating capital generation from its units to reach around 1.2 billion euros ($1.3 billion) this year, compared to the previous target of over 1 billion. Previously, Aegon had anticipated reaching the 1.2 billion euro threshold in 2025.
In the third quarter, Aegon generated 310 million euros in operating capital, surpassing analysts’ expectations of 212 million euros. This represents a 29% increase from the same period last year. CEO Lard Friese highlighted the “continued commercial momentum” in the U.S. in a statement on quarterly earnings.
The Americas region, which primarily includes the U.S. business, accounted for two-thirds of Aegon’s operating capital generation in the quarter. Metlife, a U.S. peer company, also reported higher earnings from retirement and income solutions earlier this month, due to increased recurring interest margins.
Aegon aims to expand the headcount of its U.S. life insurance agency, World Financial Group, to 110,000 agents by 2027. As of the end of the third quarter, the agency had 69,104 licensed agents. During an interview, Aegon’s CFO, Matt Rider, explained that the decline in the number of agents was due to non-active agents dropping out in the third quarter after being required to pay for their own errors and omissions insurance at the half-year mark. However, Rider expressed confidence in reaching the target of 110,000 agents in the long term.
In July, Aegon concluded the sale of its domestic insurance operations to ASR for 4.9 billion euros, resulting in ASR becoming the second-largest insurer in the Netherlands, replacing Aegon.
($1 = 0.9228 euros)
