Aegon has released its financial results for the first half of 2025, reporting a net profit of €606 million. This marks a turnaround from the net loss of €65 million recorded during the same period in 2024.
The company’s operating result reached €845 million, representing a 19% increase year-on-year, which Aegon attributes to business growth and improved experience variance in its United States operations.
Valuation equity per share, defined as the sum of shareholders’ equity and the contractual service margin after estimated tax adjustment, stood at €8.47. This figure reflects a 5% decrease over the reporting period, as the contribution from net profit was offset by unfavourable currency movements and capital returns to shareholders.
Operating capital generation (OCG) before holding funding and operating expenses was €576 million, a 2% decrease compared to the first half of 2024. Aegon cited unfavourable non-recurring items and increased new business as contributing factors.
Free cash flow rose to €442 million, up 18% from €373 million in the prior year period. The company’s main units maintained capital ratios above their respective operating levels, with Cash Capital at Holding above the operating range at €2.0 billion.
The company’s performance in recent periods has been shaped in part by mortality experience in the United States. In 2024, Aegon faced unfavourable mortality trends related to its US financial assets, which negatively impacted both its operating result and capital generation.
This trend continued to influence results into 2025, with the insurer noting that adverse mortality experience in the US partially offset gains from business growth. The company has responded to these developments by updating its assumptions in the US to address adverse policyholder behaviour and mitigate further impact on earnings.
Chief executive Lard Friese (pictured above) commented on the results, noting that annual assumption updates in the United States led to some strengthening of assumptions to address adverse policyholder behaviour experience in recent quarters.
“Our capital ratios remain robust, and our cash capital position stands above our operating range,” Friese said.
Aegon announced an increase in its ongoing share buyback programme by €200 million, bringing the total for the second half of 2025 to €400 million. This follows a series of capital management actions, including a €1.535 billion share buyback programme completed in June 2024 and the initiation of a new €200 million buyback in July 2024.
The interim dividend for 2025 has been set at €0.19 per common share, an increase of €0.03 compared to the 2024 interim dividend. The company stated it remains on track to meet all of its 2025 financial targets.
On the strategic front, Aegon has initiated a review regarding the potential relocation of its legal domicile and head office to the United States. This review comes as the company considers aligning its legal, tax, and regulatory frameworks with its primary market, given that the United States now accounts for approximately 70% of Aegon’s operations.
The move is also being considered in the context of broader industry shifts, such as the transition to the Bermuda capital framework, which will apply from January 2028. Aegon has indicated that the review is intended to simplify its corporate structure and better reflect where it conducts the majority of its business.
Aegon aims to share the outcome of the review at its Capital Markets Day scheduled for December 10.
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