Index | Page Number | |||
Item 1: Condensed consolidated interim financial statements |
||||
Condensed consolidated income statement |
3 |
|||
Condensed consolidated statement of comprehensive income |
4 |
|||
Condensed consolidated statement of financial position |
5 |
|||
Condensed consolidated statement of changes in equity |
6 |
|||
Condensed consolidated cash flow statement |
8 |
|||
Notes to the condensed consolidated interim financial statements |
9 |
|||
Item 2: Operating and financial review and prospects |
55 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 2 |
EUR millions |
Notes | 1H 2024 |
1H 2023 | |||||
Insurance revenue | ||||||||
Insurance service expenses | ( |
( |
||||||
Net income / (expenses) on reinsurance held | ||||||||
Insurance service result |
4 |
( |
||||||
Interest revenue on financial instruments calculated using the effective interest method | ||||||||
Interest revenue on financial instruments measured at FVPL | ||||||||
Other investment income | ||||||||
Results from financial transactions | ||||||||
Impairment losses / (reversals) | ( |
( |
||||||
Insurance finance income / (expenses) | ( |
( |
||||||
Net reinsurance finance income / (expenses) on reinsurance held | ||||||||
Interest expenses | ( |
( |
||||||
Insurance net investment result |
( |
( |
||||||
Interest revenue on financial instruments calculated using the effective interest method | ||||||||
Interest revenue on financial instruments measured at FVPL | ||||||||
Other investment income | ||||||||
Results from financial transactions | ||||||||
Impairment losses / (reversals) | ( |
( |
||||||
Investment contract income / (expenses) | ( |
( |
||||||
Interest expenses | ( |
( |
||||||
Other net investment result |
||||||||
Interest charges | ( |
( |
||||||
Financing net investment result |
( |
( |
||||||
Total net investment result |
5 |
( |
( |
|||||
Fee and commission income | 6 |
|||||||
Other operating expenses | 7 |
( |
( |
|||||
Other income / (charges) | ( |
|||||||
Other result |
( |
( |
||||||
Result before share in profit / (loss) of joint ventures, associates and tax |
( |
( |
||||||
Share in profit / (loss) of joint ventures | ||||||||
Share in profit / (loss) of associates | ( |
|||||||
Result before tax |
( |
( |
||||||
Income tax (expense) / benefit | 8 |
|||||||
Net result |
( |
( |
||||||
Net result from discontinued operations |
- |
( |
||||||
Net result from continuing and discontinued operations |
( |
( |
||||||
Net result attributable to owners of Aegon Ltd. | ( |
( |
||||||
Non-controlling interest |
( |
|||||||
Earnings per share (EUR per share) |
11 |
|||||||
Basic earnings per common share |
( |
( |
||||||
Basic earnings per common share B |
||||||||
Diluted earnings per common share |
( |
( |
||||||
Diluted earnings per common share B |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
3 |
| ||||||||
EUR millions |
Notes | 1H 2024 |
1H 2023 |
|||||
Net result from continuing and discontinued operations |
( |
( |
||||||
Other comprehensive income: |
||||||||
Items that will not be reclassified to profit or loss: |
||||||||
Changes in revaluation reserve real estate held for own use | - | |||||||
Remeasurements of defined benefit plans | ( |
( |
||||||
Income tax relating to items that will not be reclassified | ( |
|||||||
Discontinued operations that will not be reclassified | - | |||||||
Insurance items that may be reclassified subsequently to profit or loss: |
||||||||
Gains / (losses) on financial assets measured at FVOCI | 5 | ( |
||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | 5 | |||||||
Insurance finance income / (expenses) | 5 | ( |
||||||
Reinsurance finance income / (expenses) | 5 | ( |
||||||
Changes in cash flow hedging reserve | ( |
( |
||||||
Income tax relating to items that may be reclassified | ||||||||
Other items that may be reclassified subsequently to profit or loss: |
||||||||
Gains / (losses) on financial assets measured at FVOCI | ( |
|||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | ||||||||
Changes in cash flow hedging reserve | ( |
|||||||
Movement in foreign currency translation and net foreign investment hedging reserves | ( |
|||||||
Equity movements of joint ventures | ( |
|||||||
Equity movements of associates | ||||||||
Disposal of group assets | ( |
|||||||
Income tax relating to items that may be reclassified | ( |
|||||||
Discontinued operations that may be reclassified | - | |||||||
Other | ||||||||
Total other comprehensive income / (loss) |
||||||||
Total comprehensive income / (loss) |
( |
|||||||
Total comprehensive income/ (loss) attributable to: |
||||||||
Owners of Aegon Ltd. | ( |
|||||||
Non-controlling interests |
( |
- |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
4 |
| ||||||||
EUR millions |
Notes | June 30, 2024 | December 31, 2023 | |||||
Assets |
||||||||
Cash and cash equivalents |
||||||||
Assets held for sale / disposal groups |
||||||||
Investments |
9 | |||||||
Derivatives |
||||||||
Investments in joint ventures |
||||||||
Investments in associates |
||||||||
Reinsurance contract assets |
12 | |||||||
Insurance contract assets |
12 | |||||||
Deferred tax assets |
||||||||
Deferred expenses |
||||||||
Other assets and receivables |
||||||||
Intangible assets |
||||||||
Total assets |
||||||||
Shareholders’ equity |
11 | |||||||
Other equity instruments |
||||||||
Issued capital and reserves attributable to owners of Aegon Ltd. |
||||||||
Non-controlling interests |
||||||||
Group equity |
||||||||
Subordinated borrowings |
14 |
|||||||
Trust pass-through securities |
||||||||
Reinsurance contract liabilities |
12 | |||||||
Insurance contract liabilities |
12 | |||||||
Investment contract liabilities with discretionary participating features |
12 | |||||||
Investment contracts without discretionary participating features |
13 | |||||||
Derivatives |
||||||||
Borrowings |
14 | |||||||
Liabilities held for sale |
||||||||
Other liabilities |
||||||||
Total liabilities |
||||||||
Total equity and liabilities |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
5 |
EUR millions |
Share capital |
Retained earnings |
Revaluation reserves |
Re- measurement of defined benefit plans |
Other reserves |
Shareholders’ equity |
Other equity instruments |
Issued capital and reserves 1 |
Non- controlling interests |
Total | ||||||||||||||||||||||||||||||
On January 1, 2024 |
( |
( |
||||||||||||||||||||||||||||||||||||||
Net result recognized in the income statement | - | ( |
- | - | - | ( |
- | ( |
( |
( |
||||||||||||||||||||||||||||||
Other comprehensive income: |
||||||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: |
||||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | - | - | - | ( |
- | ( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | - | - | - | ( |
- | ( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | - | - | ( |
- | - | ( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Insurance finance income / (expenses) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Reinsurance finance income / (expenses) | - | - | ( |
- | - | ( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | ( |
- | - | ( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Other items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | - | - | ( |
- | - | ( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves |
- | - | ( |
( |
- | |||||||||||||||||||||||||||||||||||
Equity movements of joint ventures | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Equity movements of associates | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Disposal of group assets | - | - | - | - | ( |
( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Other | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) |
- |
( |
( |
- |
||||||||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for the period |
- |
( |
( |
( |
- |
( |
||||||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | ( |
- | - | - | ( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Dividends paid on common shares | - | ( |
- | - | - | ( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Coupons on perpetual securities | - | ( |
- | - | - | ( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Incentive plans | - | ( |
- | - | - | ( |
( |
( |
- | ( |
||||||||||||||||||||||||||||||
Change in ownership non-controlling interests |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
On June 30, 2024 |
( |
( |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
6 |
EUR millions |
Share capital |
Retained earnings |
Revaluation reserves |
Re- measurement of defined benefit plans |
Other reserves |
Shareholders’ equity |
Other equity instruments |
Reserve of discontinued operations held for sale |
Issued capital and reserves 1 |
Non- controlling interests |
Total | |||||||||||||||||||||||||||||||||
On January 1, 2023 | ( |
( |
( |
|||||||||||||||||||||||||||||||||||||||||
Net result recognized in the income statement | - | ( |
- | - | - | ( |
- | - | ( |
( |
||||||||||||||||||||||||||||||||||
Other comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: |
||||||||||||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | - | - | - | ( |
- | ( |
- | - | ( |
- | ( |
|||||||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Discontinued operations that will not be reclassified | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss |
||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Insurance finance income / (expenses) | - | - | ( |
- | - | ( |
- | - | ( |
- | ( |
|||||||||||||||||||||||||||||||||
Reinsurance finance income / (expenses) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | ( |
- | - | ( |
- | - | ( |
- | ( |
|||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Other items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | ( |
- | - | ( |
- | - | ( |
- | ( |
|||||||||||||||||||||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves |
- | - | ( |
( |
- | - | ( |
( |
( |
|||||||||||||||||||||||||||||||||||
Equity movements of joint ventures | - | - | - | - | ( |
( |
- | - | ( |
- | ( |
|||||||||||||||||||||||||||||||||
Equity movements of associates | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Disposal of group assets | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | ( |
- | ( |
- | - | ( |
- | ( |
||||||||||||||||||||||||||||||||||
Discontinued operations that may be reclassified | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Other | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) |
- |
( |
( |
( |
- |
( |
||||||||||||||||||||||||||||||||||||||
Total comprehensive income / (loss) |
- |
( |
( |
( |
( |
- |
( |
( |
||||||||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | ( |
- | - | - | ( |
- | - | ( |
- | ( |
|||||||||||||||||||||||||||||||||
Dividends paid on common shares | - | ( |
- | - | - | ( |
- | - | ( |
- | ( |
|||||||||||||||||||||||||||||||||
Coupons on perpetual securities | - | ( |
- | - | - | ( |
- | - | ( |
- | ( |
|||||||||||||||||||||||||||||||||
Incentive plans | - | ( |
- | - | - | ( |
( |
- | ( |
- | ( |
|||||||||||||||||||||||||||||||||
Change in ownership non-controlling interests |
- | - | - | - | - | - | - | - | - | ( |
( |
|||||||||||||||||||||||||||||||||
On June 30, 2023 |
( |
( |
( |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
7 |
EUR millions |
1H 2024 |
1H 2023 |
||||||
Result before tax from continuing operations |
( |
( |
||||||
Result before tax from discontinued operations |
||||||||
Impairment loss on measurement of disposal group |
( |
|||||||
Result before tax from continuing operations and discontinued operations |
( |
( |
||||||
Results from financial transactions |
( |
( |
||||||
Amortization and depreciation |
( |
( |
||||||
Impairment losses |
||||||||
Results from (re)insurance contracts and investment contracts with discretionary participating features |
||||||||
Income from joint ventures |
( |
( |
||||||
Income from associates |
( |
( |
||||||
Release of cash flow hedging reserve |
( |
( |
||||||
Other |
||||||||
Adjustments of non-cash items |
( |
( |
||||||
Investment contracts without discretionary participating features |
||||||||
Accrued expenses and other liabilities |
( |
( |
||||||
Accrued income and prepayments |
( |
|||||||
Changes in accruals |
||||||||
Insurance contracts |
( |
( |
||||||
Investment contracts with discretionary participating features |
( |
( |
||||||
Reinsurance contracts held |
||||||||
Purchase of investments (other than money market investments) |
( |
( |
||||||
Purchase of derivatives |
( |
( |
||||||
Disposal of investments (other than money market investments) |
||||||||
Disposal of derivatives |
( |
|||||||
Net change in cash collateral |
( |
|||||||
Net purchase of money market investments |
||||||||
Cash flow movements on operating items not reflected in income |
( |
( |
||||||
Tax (paid) / received |
( |
|||||||
Other |
( |
|||||||
Other cash flows from operating activities |
( |
|||||||
Net cash flows from operating activities |
||||||||
Purchase of individual intangible assets (other than future servicing rights) |
( |
( |
||||||
Purchase of equipment and real estate for own use |
( |
( |
||||||
Acquisition of subsidiaries, net of cash |
( |
( |
||||||
Acquisition / capital contributions joint ventures and associates |
( |
( |
||||||
Disposal of equipment |
||||||||
Disposal of subsidiaries and businesses, net of cash |
||||||||
Disposal joint ventures and associates |
||||||||
Dividend received from joint ventures and associates |
||||||||
Net cash flows from investing activities |
||||||||
Purchase of treasury shares |
( |
( |
||||||
Proceeds from TRUPS 1 , subordinated loans and borrowings |
||||||||
Repayment of TRUPS 1 , subordinated loans and borrowings |
( |
( |
||||||
Dividends paid |
( |
|||||||
Coupons on perpetual securities |
( |
( |
||||||
Payment of lease liabilities |
( |
( |
||||||
Change in ownership non-controlling interests |
( |
|||||||
Net cash flows from financing activities |
( |
( |
||||||
Net increase / (decrease) in cash and cash equivalents 2 |
( |
( |
||||||
Net cash and cash equivalents at the beginning of the reporting period |
||||||||
Effects of changes in exchange rate |
( |
|||||||
Net cash and cash equivalents at the end of the reporting period |
||||||||
Cash classified as Assets held for sale |
||||||||
Bank overdrafts |
( |
|||||||
Cash and cash equivalents in balance sheet |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
8 |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
9 |
¨ |
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements (Issued on 25 May 2023) |
¨ |
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (Issued on 23 January 2020) |
¨ |
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current - Deferral of effective date (Issued on 15 July 2020) |
¨ |
Amendments to IAS 1 Presentation of Financial Statements: Non-current liabilities with covenants (Issued on 31 October 2022) |
¨ |
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (issued on 22 September 2022) |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
10 |
Closing exchange rates |
USD | GBP | ||||||||
June 30, 2024 |
1 | EUR | ||||||||
December 31, 2023 |
1 | EUR |
Weighted average exchange rates |
USD | GBP | ||||||||
Six months ended June 30, 2024 |
1 | EUR | ||||||||
Six months ended June 30, 2023 |
1 | EUR |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
11 |
EUR millions |
Americas | United Kingdom |
International | Asset Management |
Holdings and other activities |
Eliminations | Segment total |
Joint ventures and associates’ eliminations |
Consolidated |
|||||||||||||||||||||||||||
Six months ended June 30, 2024 |
||||||||||||||||||||||||||||||||||||
Operating result |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Fair value items |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Realized gains / (losses) on investments |
( |
) | - | - | - | - | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Impairment losses / (reversals) |
( |
) | - | ( |
) | - | - | - | ( |
) | ( |
) | ||||||||||||||||||||||||
Non-operating items |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
- |
( |
) | |||||||||||||||||||||
Other income / (charges) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Result before tax |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||
Income tax (expense) / benefit |
( |
) | ( |
) | ( |
) | - | |||||||||||||||||||||||||||||
Net result |
( |
) |
( |
) |
( |
) |
( |
) |
- |
( |
) | |||||||||||||||||||||||||
Inter-segment operating result after tax |
( |
) |
( |
) |
- |
- |
- |
- |
||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||||||
Insurance contracts revenue |
||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. |
- | - | - | ( |
) | |||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. |
- | - | - | ( |
) |
( |
) | |||||||||||||||||||||||||||||
Investment contracts with discretionary participation features revenue |
||||||||||||||||||||||||||||||||||||
- Investment contracts: direct part. |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||
Insurance revenue |
- |
- |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Interest revenue on financial instruments measured at FVPL |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||
Other investment income |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Fee and commission income |
- | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Other revenues |
- | - | - | - | - | ( |
) | - | ||||||||||||||||||||||||||||
Total revenues |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Inter-segment revenues |
- |
- |
- |
- |
- |
- |
Unaudited |
Aegon Ltd. Form 6 six months ended June 30, 2024 |
12 |
EUR millions |
Americas | The Netherlands |
United Kingdom |
International | Asset Management |
Holdings and other activities |
Eliminations | Segment total |
Joint ventures and associates’ eliminations |
Consolidated |
||||||||||||||||||||||||||||||
Six months ended June 30, 2023 |
||||||||||||||||||||||||||||||||||||||||
Operating result |
- |
( |
( |
|||||||||||||||||||||||||||||||||||||
Fair value items |
- | ( |
( |
( |
- | |||||||||||||||||||||||||||||||||||
Realized gains / (losses) on investments |
( |
- | - | - | - | - | ( |
( |
( |
|||||||||||||||||||||||||||||||
Impairment losses / (reversals) |
( |
- | - | ( |
- | ( |
- | ( |
- | ( |
||||||||||||||||||||||||||||||
Non-operating items |
( |
- |
( |
( |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||||||
Other income / (charges) |
( |
( ) |
( |
( |
( |
( |
- | ( |
( |
|||||||||||||||||||||||||||||||
Result before tax |
( |
( ) |
( |
( |
( |
( |
( |
( |
||||||||||||||||||||||||||||||||
Income tax (expense) / benefit |
- | ( |
( |
( |
- | |||||||||||||||||||||||||||||||||||
Net result |
( ) |
( |
( |
( |
( |
- |
( |
|||||||||||||||||||||||||||||||||
Inter-segment operating result after tax |
( |
( ) |
( |
- |
- |
- |
- |
|||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||||||||||
Insurance contracts revenue |
||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. |
- | - | - | - | ( |
|||||||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. |
- | - | - | - | ( |
( ) |
||||||||||||||||||||||||||||||||||
Investment contracts with discretionary participation features revenue |
||||||||||||||||||||||||||||||||||||||||
- Investment contracts: direct part. |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Insurance revenue |
- |
- |
- |
( |
( |
|||||||||||||||||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method |
- | ( |
( |
|||||||||||||||||||||||||||||||||||||
Interest revenue on financial instruments measured at FVPL |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||||||||||||
Other investment income |
- | ( |
( |
|||||||||||||||||||||||||||||||||||||
Fee and commission income |
- | - | ( |
( |
||||||||||||||||||||||||||||||||||||
Other revenues |
- | - | - | - | - | - | ( |
- | ||||||||||||||||||||||||||||||||
Total revenues |
- |
( |
( |
|||||||||||||||||||||||||||||||||||||
Inter-segment revenues |
- |
- |
- |
- |
- |
- |
- |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
13 |
EUR Millions |
Americas | United Kingdom |
International | Asset Management |
Holding and other activities |
Eliminations | Total |
|||||||||||||||||||||
June 30, 2024 |
||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||
Shares |
- | - | ||||||||||||||||||||||||||
Debt securities |
- | - | ||||||||||||||||||||||||||
Unconsolidated investment funds |
- | - | - | |||||||||||||||||||||||||
Loans |
- | - | ||||||||||||||||||||||||||
Other financial assets |
- | - | ||||||||||||||||||||||||||
Investments in real estate |
- | - | - | |||||||||||||||||||||||||
Investments on balance sheet |
- |
|||||||||||||||||||||||||||
Off balance sheet investments third parties |
- | - | ||||||||||||||||||||||||||
Total revenue generating investments |
- |
|||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||
Financial assets measured at FVOCI |
||||||||||||||||||||||||||||
- Backing insurance contracts without direct part. |
- | - | - | - | ||||||||||||||||||||||||
- Backing investment contracts without direct part. |
- | - | - | - | - | |||||||||||||||||||||||
- Non-insurance related assets |
- | - | - | - | ||||||||||||||||||||||||
Financial assets measured at FVPL |
||||||||||||||||||||||||||||
- Backing direct part insurance contracts |
- | - | - | |||||||||||||||||||||||||
- Backing insurance contracts without direct part. |
- | - | - | |||||||||||||||||||||||||
- Backing direct part investment contracts |
- | - | - | - | ||||||||||||||||||||||||
- Backing investment contracts without direct part. |
- | - | - | - | ||||||||||||||||||||||||
- Non-insurance related assets |
- | - | - | |||||||||||||||||||||||||
Financial assets measured at amortized cost |
- | - | ||||||||||||||||||||||||||
Investments in real estate |
- | - | - | |||||||||||||||||||||||||
Total investments on balance sheet |
- |
|||||||||||||||||||||||||||
Investments in joint ventures |
- | - | - | - | ||||||||||||||||||||||||
Investments in associates |
- | - | - | |||||||||||||||||||||||||
Other assets |
( |
) | ||||||||||||||||||||||||||
Consolidated total assets |
( |
) |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
14 |
EUR Millions |
Americas | United Kingdom |
International | Asset Management |
Holding and other activities |
Eliminations | Total |
|||||||||||||||||||||
December 31, 2023 |
||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||
Shares |
- | - | ||||||||||||||||||||||||||
Debt securities |
- | - | ||||||||||||||||||||||||||
Unconsolidated investment funds |
- | - | - | |||||||||||||||||||||||||
Loans |
- | - | ||||||||||||||||||||||||||
Other financial assets |
- | - | ||||||||||||||||||||||||||
Investments in real estate |
- | - | - | |||||||||||||||||||||||||
Investments on balance sheet |
- |
|||||||||||||||||||||||||||
Off balance sheet investments third parties |
- | - | ||||||||||||||||||||||||||
Total revenue generating investments |
- |
|||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||
Financial assets measured at FVOCI |
||||||||||||||||||||||||||||
- Backing insurance contracts without direct part. |
- | - | - | - | ||||||||||||||||||||||||
- Backing investment contracts without direct part. |
- | - | - | - | - | |||||||||||||||||||||||
- Non-insurance related assets |
- | - | - | - | ||||||||||||||||||||||||
Financial assets measured at FVPL |
||||||||||||||||||||||||||||
- Backing direct part insurance contracts |
- | - | - | |||||||||||||||||||||||||
- Backing insurance contracts without direct part. |
- | - | - | |||||||||||||||||||||||||
- Backing direct part investment contracts |
- | - | - | - | ||||||||||||||||||||||||
- Backing investment contracts without direct part. |
- | - | - | - | ||||||||||||||||||||||||
- Non-insurance related assets |
- | - | - | - | ||||||||||||||||||||||||
Financial assets measured at amortized cost |
- | - | ||||||||||||||||||||||||||
Investments in real estate |
- | - | - | |||||||||||||||||||||||||
Total investments on balance sheet |
- |
|||||||||||||||||||||||||||
Investments in joint ventures |
- | - | - | - | ||||||||||||||||||||||||
Investments in associates |
- | - | - | |||||||||||||||||||||||||
Other assets |
( |
) | ||||||||||||||||||||||||||
Consolidated total assets |
( |
) |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
15 |
EUR Millions |
Americas | United Kingdom |
International | Eliminations | Total | |||||||||||||||
June 30, 2024 |
||||||||||||||||||||
Insurance contracts 1 |
( |
|||||||||||||||||||
Direct participating contracts |
- | |||||||||||||||||||
Without direct participation contracts |
( |
|||||||||||||||||||
Contracts measured under the PAA |
- | - | - | |||||||||||||||||
Investment contracts with DPF |
||||||||||||||||||||
Direct participating contracts |
- | - | - | |||||||||||||||||
Insurance contracts and investment contracts without participation features |
( |
|||||||||||||||||||
Reinsurance contracts held 2 |
( |
( |
EUR Millions |
Americas | United Kingdom |
International | Eliminations | Total | |||||||||||||||
December 31, 2023 |
||||||||||||||||||||
Insurance contracts 1 |
( |
|||||||||||||||||||
Direct participating contracts |
- | |||||||||||||||||||
Without direct participation contracts |
( |
|||||||||||||||||||
Contracts measured under the PAA |
- | - | - | |||||||||||||||||
Investment contracts with DPF |
||||||||||||||||||||
Direct participating contracts |
- | - | - | |||||||||||||||||
Insurance contracts and investment contracts without participation features |
( |
|||||||||||||||||||
Reinsurance contracts held 2 |
( |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
16 |
EUR Millions |
1H 2024 | 1H 2023 | ||||||||||||||
Insurance contracts |
Investment contracts with DPF |
Insurance contracts |
Investment contracts with DPF |
|||||||||||||
Insurance revenue |
||||||||||||||||
Expected insurance claims and other insurance service expenses to be incurred |
||||||||||||||||
Earnings released from contractual service margin (“CSM”) |
||||||||||||||||
Release of risk adjustment for non-financial risk |
||||||||||||||||
Allocated portion of consideration that relates to recovery acquisition costs |
||||||||||||||||
Other |
( |
( |
||||||||||||||
Contracts not measured under the PAA |
||||||||||||||||
Contracts measured under the PAA |
||||||||||||||||
Total insurance revenue |
||||||||||||||||
Insurance service expenses |
||||||||||||||||
Incurred claims and other incurred insurance service expenses |
( |
( |
( |
( |
||||||||||||
Changes in fulfilment cash flows relating to incurred claims |
( |
- | ( |
- | ||||||||||||
Onerous contract losses (and reversals) |
( |
- | ( |
- | ||||||||||||
Amortization of insurance acquisition costs |
( |
- | ( |
- | ||||||||||||
Contracts not measured under the PAA |
( |
( |
( |
( |
||||||||||||
Contracts measured under the PAA |
( |
- | ( |
- | ||||||||||||
Total insurance service expenses |
( |
( |
( |
( |
||||||||||||
Net income / (expenses) on reinsurance held |
||||||||||||||||
Assumption changes that relate to (a reversal of) underlying onerous contracts |
||||||||||||||||
Experience adjustments that relate to (a reversal of) underlying onerous contracts |
||||||||||||||||
Release of the contractual service margin for services received |
( |
( |
||||||||||||||
Release of risk adjustment for non-financial risk |
( |
( |
||||||||||||||
Experience adjustments on current service |
( |
|||||||||||||||
Changes in fulfilment cash flows relating to incurred claims |
||||||||||||||||
New contracts issued: loss on initial recognition of underlying contracts |
( |
|||||||||||||||
Establishing of loss recovery component from onerous underlying contracts |
||||||||||||||||
Reversals of a loss-recovery component other than changes in the FCF of reinsurance contracts held |
( |
|||||||||||||||
Contracts not measured under the PAA |
||||||||||||||||
Contracts measured under the PAA |
||||||||||||||||
Total net income / (expenses) on reinsurance held |
||||||||||||||||
Insurance service result |
( |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
17 |
EUR millions |
1H 2024 | 1H 2023 | ||
Insurance contracts |
||||
Related to contracts transitioned under the modified retrospective method |
||||
Related to contracts transitioned under the fair value approach |
||||
Other contracts |
||||
Total revenue reported in the period |
||||
Investment contracts with discretionary participating features |
||||
Related to contracts transitioned under the fair value approach |
||||
Total revenue reported in the period |
||||
Total revenue reported in the period – all contracts |
EUR Millions |
1H 2024 | 1H 2023 | ||
Insurance net investment result |
( |
( | ||
Other net investment result |
||||
Financing net investment result |
( |
( | ||
Total net investment result |
( |
( |
Unaudited |
Aegon Ltd. Form 6 -K for the six months ended June 30, 2024 |
18 |
EUR Millions |
1H 2024 |
|||||||||||||||||||
Insurance contracts | |
Investment contracts with DPF |
|
|||||||||||||||||
Direct Part. | Without direct part. |
Direct Part. | Without direct part. |
Total | ||||||||||||||||
Insurance investment return |
||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method |
- | - | - | |||||||||||||||||
Interest revenue on financial instruments measured at FVPL |
- | |||||||||||||||||||
Other investment income |
- | |||||||||||||||||||
Results from financial transactions |
( |
- | ||||||||||||||||||
Impairment losses / (reversals) |
- | ( |
- | - | ( |
|||||||||||||||
Interest expenses |
- | ( |
- | - | ( |
|||||||||||||||
P&L impacts |
- |
|||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI |
- | ( |
- | - | ( |
|||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI |
- | - | - | |||||||||||||||||
OCI impacts |
- |
( |
- |
- |
( |
|||||||||||||||
Total insurance investment return |
- |
|||||||||||||||||||
Interest accreted to insurance contracts |
- | ( |
- | - | ( |
|||||||||||||||
Changes in interest rates and other financial assumptions |
- | - | - | |||||||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates |
- | ( |
- | - | ( |
|||||||||||||||
Change in fair value of underlying assets of products with direct participating features |
( |
- | ( |
- | ( |
|||||||||||||||
Change in fulfilment value not recognized in CSM due to risk mitigation option |
- | - | - | |||||||||||||||||
Total insurance finance income / (expenses) |
( |
( |
( |
- |
( |
|||||||||||||||
Amounts recognized in profit or loss |
( |
( |
( |
- | ( |
|||||||||||||||
Amounts recognized in OCI |
- | - | ||||||||||||||||||
Interest accreted to reinsurance contracts |
- | - | - | |||||||||||||||||
Changes in interest rates and other financial assumptions |
- | ( |
- | - | ( |
|||||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates |
- | - | - | |||||||||||||||||
Changes in risk of non-performance of reinsurers |
- | ( |
- | - | ( |
|||||||||||||||
Reinsurance finance income / (expenses) on reinsurance held |
- |
( |
- |
- |
( |
|||||||||||||||
Amounts recognized in profit or loss |
- | - | - | |||||||||||||||||
Amounts recognized in OCI |
- | ( |
- | - | ( |
|||||||||||||||
Insurance net investment result |
( |
( |
- |
|||||||||||||||||
Amounts recognized in profit or loss |
( |
( |
- | ( |
||||||||||||||||
Amounts recognized in OCI |
- | - |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
19 |
EUR Millions |
1H 2023 |
|||||||||||||||||||
Insurance contracts | |
Investment contracts with DPF |
|
|||||||||||||||||
Direct Part. | Without direct part. |
Direct Part. |
Without direct part. |
Total | ||||||||||||||||
Insurance investment return |
||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method |
- | - | - | |||||||||||||||||
Interest revenue on financial instruments measured at FVPL |
- | |||||||||||||||||||
Other investment income |
- | |||||||||||||||||||
Results from financial transactions |
( |
- | ||||||||||||||||||
Impairment losses / (reversals) |
- | ( |
- | - | ( |
|||||||||||||||
Interest expenses |
- | ( |
- | - | ( |
|||||||||||||||
P&L impacts |
- |
|||||||||||||||||||
Gains / (losses) on investments in equity instruments designated at FVOCI |
- | - | - | |||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI |
- | - | - | |||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI |
- | - | - | |||||||||||||||||
OCI impacts |
- |
- |
- |
|||||||||||||||||
Total insurance investment return |
- |
|||||||||||||||||||
Interest accreted to insurance contracts |
- | ( |
- | - | ( |
|||||||||||||||
Changes in interest rates and other financial assumptions |
- | ( |
- | - | ( |
|||||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates |
- | ( |
- | - | ( |
|||||||||||||||
Change in fair value of underlying assets of products with direct participating features |
( |
- | ( |
- | ( |
|||||||||||||||
Change in fulfilment value not recognized in CSM due to risk mitigation option |
- | - | - | |||||||||||||||||
Insurance finance expenses from PAA contracts |
- | ( |
- | - | ( |
|||||||||||||||
Total insurance finance income / (expenses) |
( |
( |
( |
- |
( |
|||||||||||||||
Amounts recognized in profit or loss |
( |
( |
( |
- | ( |
|||||||||||||||
Amounts recognized in OCI |
( |
- | - | ( |
||||||||||||||||
Interest accreted to reinsurance contracts |
- | - | - | |||||||||||||||||
Changes in interest rates and other financial assumptions |
- | - | - | |||||||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates |
- | - | - | |||||||||||||||||
Changes in risk of non-performance of reinsurers |
- | ( |
- | - | ( |
|||||||||||||||
Reinsurance finance income / (expenses) on reinsurance held |
- |
- |
- |
|||||||||||||||||
Amounts recognized in profit or loss |
- | - | - | |||||||||||||||||
Amounts recognized in OCI |
- | - | - | |||||||||||||||||
Insurance net investment result |
( |
( |
- |
( |
||||||||||||||||
Amounts recognized in profit or loss |
( |
( |
- | ( |
||||||||||||||||
Amounts recognized in OCI |
( |
- | - | ( |
Unaudited |
Aegon Ltd . Form 6 -K for the six months ended June 30, 2024 |
20 |
EUR Millions |
1H 2024 |
1H 2023 |
||||||||||||||
Insurance related |
Non-insurance related |
Insurance related |
Non-insurance related |
|||||||||||||
Fair value gains and losses - derivatives |
( |
( |
( |
|||||||||||||
Fair value changes of financial assets at FVPL |
||||||||||||||||
Other |
( |
( |
( |
( |
||||||||||||
Results from financial transactions |
EUR Millions |
1H 2024 |
1H 2023 |
||||||
General model |
( |
( |
||||||
Variable fee approach |
( |
( |
||||||
Premium allocation approach |
- | ( |
||||||
Insurance finance income / (expenses) |
( |
( |
EUR Millions |
1H 2024 | 1H 2023 | ||||||
Fair value changes in financial liabilities - policyholders |
( |
( |
||||||
Fair value changes in other financial liabilities |
( |
( |
||||||
Other |
||||||||
Investment contract income / (expenses) |
( |
( |
EUR millions |
1H 2024 | 1H 2023 | ||||||
Fee income from asset management |
||||||||
Commission income |
||||||||
Securities lending income |
||||||||
Other fee and commission income |
||||||||
Fee and commission income |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
21 |
EUR Millions |
1H 2024 |
1H 2023 |
||||||||||||||
Insurance related |
Non-insurance related |
Insurance related |
Non-insurance related |
|||||||||||||
Policyholder claims and benefits |
- | - | ||||||||||||||
Onerous contract losses (and reversals) |
- | - | ||||||||||||||
Commissions |
||||||||||||||||
Handling and clearing fees |
- | ( |
||||||||||||||
Right of use assets – interest expense |
- | - | ||||||||||||||
Employee expenses |
||||||||||||||||
Administration expenses |
||||||||||||||||
Deferred transaction expenses |
- | ( |
- | ( |
||||||||||||
Amortization of deferred expenses |
- | - | ||||||||||||||
Amortization of other intangibles |
- | - | ||||||||||||||
Total |
||||||||||||||||
Amounts attributed to insurance acquisition cash flows |
( |
- | ( |
- | ||||||||||||
Amortization of insurance acquisition cash flows |
- | - | ||||||||||||||
Amortization of insurance acquisition cash flows PAA |
- | - | ||||||||||||||
Total commissions and expenses |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
22 |
EUR Millions |
June 30, 2024 | |||||||||||||||||||||||
Insurance related | ||||||||||||||||||||||||
Insurance contracts | Investment contracts with DPF | |||||||||||||||||||||||
Direct Part. | Without direct part. |
|
Direct Part. | Without direct part. |
|
Non- Insurance related |
|
Total | ||||||||||||||||
Financial assets measured at FVOCI – with recycling |
- | - | ||||||||||||||||||||||
Financial assets measured at FVOCI – no recycling |
- | - | - | |||||||||||||||||||||
Financial assets measured at amortized cost |
- | - | ||||||||||||||||||||||
Financial assets measured at FVPL – designated |
||||||||||||||||||||||||
Financial assets measured at FVPL – mandatory |
- | - | ||||||||||||||||||||||
Total financial assets, excluding derivatives |
||||||||||||||||||||||||
Investments in real estate |
- | |||||||||||||||||||||||
Total investments |
||||||||||||||||||||||||
December 31, 2023 |
| |||||||||||||||||||||||
Insurance related | ||||||||||||||||||||||||
Insurance contracts | Investment contracts with DPF | |||||||||||||||||||||||
Direct Part. | Without direct part. |
|
Direct Part. | Without direct part. |
|
Non- Insurance related |
|
Total | ||||||||||||||||
Financial assets measured at FVOCI – with recycling |
- | - | ||||||||||||||||||||||
Financial assets measured at FVOCI – no recycling |
- | - | - | |||||||||||||||||||||
Financial assets measured at amortized cost |
- | - | ||||||||||||||||||||||
Financial assets measured at FVPL – designated |
||||||||||||||||||||||||
Financial assets measured at FVPL – mandatory |
- | - | ||||||||||||||||||||||
Total financial assets, excluding derivatives |
||||||||||||||||||||||||
Investments in real estate |
- | |||||||||||||||||||||||
Total investments |
EUR millions |
||||||||
Financial assets |
June 30, 2024 | December 31, 2023 | ||||||
where Aegon bears the risk |
||||||||
where policyholders bear the risk |
||||||||
Total |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
23 |
EUR millions |
FVOCI (with recycling) |
FVOCI (no recycling) |
Amortized cost |
FVPL (designated) |
FVPL (mandatory) |
Total | Fair value | |||||||||||||||||||||
Shares |
||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||
Money market and other short-term investments |
||||||||||||||||||||||||||||
Deposits with financial institutions |
||||||||||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||
June 30, 2024 |
EUR millions |
FVOCI (with recycling) |
FVOCI (no recycling) |
Amortized cost |
FVPL (designated) |
FVPL (mandatory) |
Total | Fair value | |||||||||||||||||||||
Shares |
- | - | - | |||||||||||||||||||||||||
Debt securities |
- | |||||||||||||||||||||||||||
Money market and other short-term investments |
- | - | ||||||||||||||||||||||||||
Deposits with financial institutions |
- | - | - | - | ||||||||||||||||||||||||
Loans |
- | - | - | - | ||||||||||||||||||||||||
Other |
- | |||||||||||||||||||||||||||
December 31, 2023 |
EUR millions |
June 30, 2024 | December 31, 2023 | ||||||
Shares |
||||||||
Debt securities |
||||||||
Money market and other short-term investments |
||||||||
Unconsolidated investment funds |
||||||||
Deposits with financial institutions |
||||||||
Other |
- | - | ||||||
Total |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
24 |
June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||
EUR Millions |
Level I | Level II | Level III | Total | Level I | Level II | Level III | Total | ||||||||||||||||||||||||
Financial assets carried at fair value |
||||||||||||||||||||||||||||||||
Financial assets measured at FVOCI |
||||||||||||||||||||||||||||||||
Shares |
- | - | ||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Money markets and other short-term instruments |
||||||||||||||||||||||||||||||||
Other investments at fair value |
- | - | ||||||||||||||||||||||||||||||
Total Financial assets measured at FVOCI |
||||||||||||||||||||||||||||||||
Financial assets measured at fair value through profit or loss |
||||||||||||||||||||||||||||||||
Shares |
||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Money market and other short-term investments |
- | - | ||||||||||||||||||||||||||||||
Loans |
- | - | - | - | - | - | ||||||||||||||||||||||||||
Other investments at fair value |
||||||||||||||||||||||||||||||||
Derivatives |
||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk 1 |
||||||||||||||||||||||||||||||||
Total Financial assets measured at fair value through profit or loss |
||||||||||||||||||||||||||||||||
Total financial assets at measured at fair value |
||||||||||||||||||||||||||||||||
Financial liabilities carried at fair value |
||||||||||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk 2 |
- | - | - | - | ||||||||||||||||||||||||||||
Borrowings 3 |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Derivatives |
||||||||||||||||||||||||||||||||
Total financial liabilities measured at fair value |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
25 |
Unrealized gains and losses for the period recorded in the P&L for instruments held on June 30, 2024 |
||||||||||||||||||||||||||||||||||||||||||||||||
EUR millions |
January 1, 2024 |
Total gains / losses in income statement 1 |
Total gains / losses in OCI 2 |
Purchases | Sales | Settlements | Net exchange differences |
Reclassification | Transfers from Level I and Level II |
Transfers to Level I and Level II |
June 30, 2024 |
Total 3 |
||||||||||||||||||||||||||||||||||||
Financial assets measured at fair value through other comprehensive income |
||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Debt securities |
( |
( |
( |
- | ( |
- | ||||||||||||||||||||||||||||||||||||||||||
Money markets and other short- term instruments |
- | ( |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
( |
( |
( |
- | ( |
- | |||||||||||||||||||||||||||||||||||||||||||
Financial assets measured at fair value through profit or loss |
||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
- | - | ( |
- | - | - | - | ( |
||||||||||||||||||||||||||||||||||||||||
Debt securities |
( |
- | ( |
( |
- | ( |
( |
|||||||||||||||||||||||||||||||||||||||||
Loans |
- | ( |
- | - | - | - | - | ( |
||||||||||||||||||||||||||||||||||||||||
Other investments at fair value |
( |
- | ( |
- | ( |
- | - | ( |
||||||||||||||||||||||||||||||||||||||||
Derivatives |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk |
( |
- | ( |
- | - | - | - | ( |
||||||||||||||||||||||||||||||||||||||||
Total Financial assets measured at fair value through profit or loss |
( |
- | ( |
( |
- | ( |
( |
|||||||||||||||||||||||||||||||||||||||||
Total assets at fair value |
( |
( |
( |
( |
- | ( |
( |
|||||||||||||||||||||||||||||||||||||||||
Derivatives |
( |
- | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Total financial liabilities measured at fair value |
( |
- | - | - | - | - | - | - | - | - |
Unaudited |
Aegon Ltd. Form 6 -K for the six months ended June 30, 2024 |
26 |
Unrealized gains and losses for the period recorded in the P&L for instruments held on December 31, 2023 |
||||||||||||||||||||||||||||||||||||||||||||
EUR millions |
January 1, 2023 |
Total gains / losses in income statement 1 |
Total gains / losses in OCI 2 |
Purchases |
Sales |
Settlements |
Net exchange differences |
Transfers from Level I and Level II |
Transfers to Level I and Level II |
December 31, 2023 |
Total 3 |
|||||||||||||||||||||||||||||||||
Financial assets measured at fair value through other comprehensive income |
||||||||||||||||||||||||||||||||||||||||||||
Shares |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||||||||||||
Debt securities |
( |
( |
( |
( |
( |
- |
||||||||||||||||||||||||||||||||||||||
Money markets and other short- term instruments |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||||||
( |
( |
( |
( |
( |
- |
|||||||||||||||||||||||||||||||||||||||
Financial assets measured at fair value through profit or loss |
||||||||||||||||||||||||||||||||||||||||||||
Shares |
- |
( |
- |
( |
- |
|||||||||||||||||||||||||||||||||||||||
Debt securities |
- |
( |
( |
( |
- |
( |
||||||||||||||||||||||||||||||||||||||
Money markets and other short-term instruments |
- |
- |
- |
- |
- |
- |
- |
( |
- |
- |
||||||||||||||||||||||||||||||||||
Other investments at fair value |
( |
- |
( |
- |
( |
- |
- |
( |
||||||||||||||||||||||||||||||||||||
Derivatives |
( |
- |
- |
( |
- |
- |
- |
- |
( |
|||||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk |
( |
- |
( |
- |
( |
- |
- |
- |
||||||||||||||||||||||||||||||||||||
Total Financial assets measured at fair value through profit or loss |
( |
- |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||||||||||||
Total assets at fair value |
( |
( |
( |
( |
( |
( |
||||||||||||||||||||||||||||||||||||||
Derivatives |
( |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||||||||||||
Total financial liabilities measured at fair value |
( |
- |
- |
- |
- |
- |
- |
- |
- |
1 Includes impairments and movements related to fair value hedges. Gains and losses are recorded in the line item results from financial transactions of the income statement.2 Total gains and losses are recorded in line items Gains / (losses) on financial assets measured at FVOCI and Gains / (losses) transferred to income statement on disposal of financial assets. measured at FVOCI of the statement of comprehensive income.3 Total gains / (losses) for the period during which the financial instrument was in Level III. |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30 , 2024 |
27 |
Carrying amount |
Total estimated fair value |
Carrying amount |
Total estimated fair value |
|||||||||||||
EUR millions |
June 30, 2024 | December 31, 2023 | ||||||||||||||
Assets |
||||||||||||||||
Mortgage loans - held at amortized cost |
||||||||||||||||
Other loans - held at amortized cost |
||||||||||||||||
Liabilities |
||||||||||||||||
Subordinated borrowings - held at amortized cost |
||||||||||||||||
Trust pass-through securities - held at amortized cost |
||||||||||||||||
Borrowings – held at amortized cost |
||||||||||||||||
Investment contracts - held at amortized cost |
|
||||
EUR millions |
June 30, 2024 | December 31, 2023 | ||
Share capital - par value |
||||
Share premium |
||||
Total share capital |
||||
Share capital - par value |
||||
Balance on January 1 |
||||
Shares withdrawn |
( | |||
Balance |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
28 |
EUR millions |
1H 2024 |
FY 2023 |
||||||||||||||
Number of shares (thousands) |
Amount | Number of shares (thousands) |
Amount | |||||||||||||
On January 1 |
||||||||||||||||
Transactions in 2024: |
||||||||||||||||
Purchase: 1 transaction, average price EUR 5.38 |
- | - | ||||||||||||||
Sale: 1 transaction, average price EUR 4.77 |
( |
( |
- | - | ||||||||||||
Purchase: 1 transaction, average price EUR 5.81 |
- | - | ||||||||||||||
Transactions in 2023: |
||||||||||||||||
Purchase: 1 transaction, average price EUR 5.00 |
- | - | ||||||||||||||
Sale: 2 transactions, average price EUR 4.46 |
- | - | ( |
( |
||||||||||||
Purchase: 1 transaction, average price EUR 4.27 |
- | - | ||||||||||||||
Sale: 1 transaction, average price EUR 4.46 |
- | - | ( |
- | ||||||||||||
Share withdrawn: 1 transaction, average price EUR 4.59 |
- | - | ( |
( |
||||||||||||
Purchase: 2 transactions, average price EUR 4.77 |
- | - | ||||||||||||||
Share Withdrawn: 1 transaction, average price EUR 4.59 |
- | - | ( |
( |
||||||||||||
Closing balance |
EUR millions |
1H 2024 |
FY 2023 |
||||||||||||||
Number of shares (thousands) |
Amount | Number of shares (thousands) |
Amount | |||||||||||||
On January 1 |
|
|
||||||||||||||
No transactions in 2024 |
- |
- |
- |
- |
||||||||||||
Transactions in 2023: |
||||||||||||||||
Share withdrawn: 1 transaction, average price EUR 0.11 |
- | - | ( |
( |
||||||||||||
Purchase: 1 transaction, average price EUR 0.13 |
- | - | ||||||||||||||
Share withdrawn: 1 transaction, average price EUR 0.13 |
- | - | ( |
( |
||||||||||||
Closing balance |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
29 |
EUR millions |
1H 2024 |
1H 2023 |
||||||
Earnings per share (EUR per share) |
||||||||
Basic earnings per common share |
( |
( |
||||||
Basic earnings per common share B |
- | - | ||||||
Diluted earnings per common share |
( |
( |
||||||
Diluted earnings per common share B |
- | - | ||||||
Earnings per share calculation |
||||||||
Net result attributable to owners of Aegon Ltd. |
( |
( |
||||||
Coupons on other equity instruments |
( |
( |
||||||
Earnings attributable to common shares and common shares B |
( |
( |
||||||
Earnings attributable to common shareholders |
( |
( |
||||||
Earnings attributable to common shareholders B |
( |
( |
||||||
Weighted average number of common shares outstanding (in millions) |
||||||||
Weighted average number of common shares B outstanding (in millions) |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
30 |
EUR millions |
||||||||||||||||||||||||
Investments measured at fair value through OCI |
Real estate held for own use |
Cash flow hedging reserve |
Insurance contracts |
Reinsurance contracts held |
Total | |||||||||||||||||||
On January 1, 2024 |
( |
( |
( |
|||||||||||||||||||||
Gross revaluation |
( |
- | ( |
( |
( |
|||||||||||||||||||
Net (gains) / losses transferred to income statement |
- | ( |
- | - | ||||||||||||||||||||
Foreign currency translation differences |
( |
- | ( |
( |
||||||||||||||||||||
Tax effect |
- | ( |
||||||||||||||||||||||
On June 30, 2024 |
( |
( |
( |
|||||||||||||||||||||
On January 1, 2023 |
( |
( |
( |
|||||||||||||||||||||
Gross revaluation |
( |
( |
( |
|||||||||||||||||||||
Net (gains) / losses transferred to income statement |
- | ( |
- | - | ||||||||||||||||||||
Foreign currency translation differences |
- | ( |
( |
|||||||||||||||||||||
Tax effect |
( |
- | ( |
( |
||||||||||||||||||||
Disposal of group assets |
( |
- | - | - | ||||||||||||||||||||
On December 31, 2023 |
( |
( |
( |
EUR Millions |
2024 |
2023 |
||||||
Shares |
||||||||
Debt securities |
( |
( |
||||||
Money market and other short-term investments |
( |
( |
||||||
Revaluation reserve for investments measured at FVOCI |
( |
( |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
31 |
Insurance contracts |
||||||||||||
EUR millions |
Contracts not measured under the PAA |
Contracts measured under the PAA |
Total |
|||||||||
Portfolios in an asset position |
- | |||||||||||
Portfolios in a liability position |
|
|||||||||||
Net balance, on June 30, 2024 |
||||||||||||
Portfolios in an asset position |
- | |||||||||||
Portfolios in a liability position |
||||||||||||
Net balance, on December 31, 2023 |
Reinsurance contracts held |
||||||||||||
EUR millions |
Contracts not measured under the PAA |
Contracts measured under the PAA |
Total |
|||||||||
Portfolios in an asset position |
||||||||||||
Portfolios in a liability position |
( |
- | ( |
|||||||||
Net closing balance, on June 30, 2024 |
||||||||||||
Portfolios in an asset position |
||||||||||||
Portfolios in a liability position |
( |
- | ( |
|||||||||
Net ending balance, on December 31, 2023 |
¨ |
Tables that analyze movements by type of liabilities and reconciles them to the condensed consolidated income statement and the condensed consolidated statement of comprehensive inc ome. |
¨ |
Tables that analyze movements by measurement component |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
32 |
Insurance contracts not measured under PAA - movement schedule by type |
||||||||||||||||
Remaining coverage | ||||||||||||||||
EUR millions |
Excluding loss component |
Loss component |
Incurred claims |
Total |
||||||||||||
Opening assets |
( |
( |
||||||||||||||
Opening liabilities |
||||||||||||||||
Net balance, on January 1, 2024 |
||||||||||||||||
Insurance revenue |
( |
- | - | ( |
||||||||||||
Incurred claims and other insurance service expenses |
- | ( |
||||||||||||||
Amortization of insurance acquisition cash flows |
- | - | ||||||||||||||
Losses (and reversal of losses) on onerous contracts |
- | - | ||||||||||||||
Insurance service expenses |
||||||||||||||||
Investment components |
( |
- | - | |||||||||||||
Insurance service result |
( |
|||||||||||||||
Insurance finance (income) / expenses (P&L and OCI) |
- | |||||||||||||||
Cash flows |
( |
( |
( |
( |
||||||||||||
Contracts disposed during the period |
( |
- | ( |
|||||||||||||
Transfers to disposal groups |
( |
( |
||||||||||||||
Other movements |
- | ( |
( |
|||||||||||||
Transfer (to)/from other headings |
( |
|||||||||||||||
Net exchange differences |
||||||||||||||||
Net balance, on June 30, 2024 |
||||||||||||||||
Closing assets |
( |
( |
||||||||||||||
Closing liabilities |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
33 |
Remaining coverage | ||||||||||||||||
EUR millions |
Excluding loss component |
Loss component |
Incurred claims |
Total |
||||||||||||
Opening assets |
( |
( |
||||||||||||||
Opening liabilities |
||||||||||||||||
Net balance, on January 1, 2023 |
||||||||||||||||
Insurance revenue |
( |
- | - | ( |
||||||||||||
Incurred claims and other insurance service expenses |
- | ( |
||||||||||||||
Amortization of insurance acquisition cash flows |
- | - | ||||||||||||||
Losses (and reversal of losses) on onerous contracts |
- | - | ||||||||||||||
Adjustments to liabilities for incurred claims |
- | - | ||||||||||||||
Insurance service expenses |
||||||||||||||||
Investment components |
( |
- | - | |||||||||||||
Insurance service result |
( |
( |
||||||||||||||
Insurance finance (income) / expenses (P&L and OCI) |
- | |||||||||||||||
Cash flows |
( |
( |
( |
( |
||||||||||||
Contracts disposed during the period |
( |
- | - | ( |
||||||||||||
Transfers to disposal groups |
( |
( |
( |
( |
||||||||||||
Other movements |
- | - | ||||||||||||||
Transfer (to)/from other headings |
( |
( |
( |
|||||||||||||
Net exchange differences |
( |
( |
( |
( |
||||||||||||
Net balance, on December 31, 2023 |
||||||||||||||||
Closing assets |
( |
( |
||||||||||||||
Closing liabilities |
Unaudited |
Aeg on Ltd. Form 6-K for the six months ended June 30, 2024 |
34 |
Reinsurance contracts held not measured under the PAA - movement schedule by type |
||||||||||||||||
Asset for remaining coverage |
||||||||||||||||
EUR millions |
Excluding loss recovery component |
Loss recovery component |
Asset for Incurred claims |
Total |
||||||||||||
Opening assets |
( |
|||||||||||||||
Opening liabilities |
( |
( |
||||||||||||||
Net balance, on January 1, 2024 |
( |
|||||||||||||||
Net expenses from reinsurance contracts |
( |
|||||||||||||||
Other reinsurance finance income / (expenses) |
( |
- | ( |
|||||||||||||
Effect of changes in risk of non-performance of reinsurers |
( |
- | - | ( |
||||||||||||
Total changes in the statements of P&L and OCI |
( |
|||||||||||||||
Cash flows |
( |
( |
( |
( |
||||||||||||
Reinsurance contracts disposed in the year |
( |
- | ( |
|||||||||||||
Transfers to disposal groups |
( |
( |
( |
|||||||||||||
Net exchange differences |
( |
|||||||||||||||
Net balance, on June 30, 2024 |
( |
|||||||||||||||
Closing assets |
( |
|||||||||||||||
Closing liabilities |
( |
( |
Asset for remaining coverage |
||||||||||||||||
EUR millions |
Excluding loss recovery component |
Loss recovery component |
Asset for Incurred claims |
Total |
||||||||||||
Opening assets |
||||||||||||||||
Opening liabilities |
( |
( |
( |
|||||||||||||
Net balance, on January 1, 2023 |
||||||||||||||||
Net expenses from reinsurance contracts |
( |
( |
||||||||||||||
Other reinsurance finance income / (expenses) |
- | |||||||||||||||
Effect of changes in risk of non-performance of reinsurers |
( |
- | - | ( |
||||||||||||
Total changes in the statements of P&L and OCI |
( |
( |
||||||||||||||
Cash flows |
( |
( |
( |
( |
||||||||||||
Transfers to disposal groups |
( |
( |
( |
|||||||||||||
Other movements |
- | |||||||||||||||
Net exchange differences |
( |
( |
( |
( |
||||||||||||
Net balance, on December 31, 2023 |
( |
|||||||||||||||
Closing assets |
( |
|||||||||||||||
Closing liabilities |
( |
( |
Unaudited |
Aeg on Ltd. Form 6-K for the six months ended June 30, 2024 |
35 |
Investment contracts with discretionary participating features - movement schedule by type |
||||||||||||||||
Remaining coverage |
||||||||||||||||
EUR millions |
Excluding loss component |
Loss component |
Incurred claims |
Total |
||||||||||||
Opening assets |
- | - | - | - | ||||||||||||
Opening liabilities |
- | - | ||||||||||||||
Net balance, on January 1, 2024 |
- |
- |
||||||||||||||
Insurance revenue |
( |
- | - | ( |
||||||||||||
Incurred claims and other insurance service expenses |
- | - | ||||||||||||||
Insurance service expenses |
- |
- |
||||||||||||||
Investment components |
( |
- | - | |||||||||||||
Insurance service result |
( |
- |
( |
|||||||||||||
Insurance finance (income) / expenses (P&L and OCI) |
- | - | ||||||||||||||
Cash flows |
- | ( |
( |
|||||||||||||
Net exchange differences |
- | - | ||||||||||||||
Net balance, on June 30, 2024 |
- |
- |
||||||||||||||
Closing assets |
- | - | - | - | ||||||||||||
Closing liabilities |
- | - |
Remaining coverage |
||||||||||||||||
EUR millions |
Excluding loss component |
Loss component |
Incurred claims |
Total |
||||||||||||
Opening assets |
- | - | - | - | ||||||||||||
Opening liabilities |
- | - | ||||||||||||||
Net balance, on January 1, 2023 |
- |
- |
||||||||||||||
Insurance revenue |
( |
- | - | ( |
||||||||||||
Incurred claims and other insurance service expenses |
- | - | ||||||||||||||
Insurance service expenses |
- |
- |
||||||||||||||
Investment components |
( |
- | - | |||||||||||||
Insurance service result |
( |
- |
( |
|||||||||||||
Insurance finance (income) / expenses (P&L and OCI) |
- | - | ||||||||||||||
Cash flows |
- | ( |
( |
|||||||||||||
Other movements |
- | - | ||||||||||||||
Net exchange differences |
- | - | ||||||||||||||
Net balance, on December 31, 2023 |
- |
- |
||||||||||||||
Closing assets |
- | - | - | - | ||||||||||||
Closing liabilities |
- | - |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
36 |
Insurance contracts not measured under PAA – movement schedule by component. |
||||||||||||||||
EUR millions |
Best estimate liability |
Risk adjustment |
Contractual service margin |
Total |
||||||||||||
Opening assets |
( |
( |
||||||||||||||
Opening liabilities |
||||||||||||||||
Net balance, on January 1, 2024 |
||||||||||||||||
Changes in estimates that adjust contractual service margin |
( |
( |
- | |||||||||||||
Changes in estimates that result in (a reversal of) onerous contracts |
- | |||||||||||||||
New contracts issued – non-onerous |
( |
- | ||||||||||||||
New contracts issued – onerous |
- | |||||||||||||||
Changes that relate to future service |
( |
|||||||||||||||
Earnings released from contractual service margin |
- | - | ( |
( |
||||||||||||
Release of risk adjustment |
- | ( |
- | ( |
||||||||||||
Experience adjustments on current service |
- | - | ||||||||||||||
Revenue recognized for incurred policyholder tax expenses |
( |
- | - | ( |
||||||||||||
Changes that relate to current service |
( |
( |
( |
|||||||||||||
Experience adjustments on claims incurred |
( |
- | ||||||||||||||
Changes that relate to past service |
( |
- |
||||||||||||||
Insurance service result |
( |
|||||||||||||||
General model |
||||||||||||||||
Interest accreted to insurance contracts |
||||||||||||||||
Changes in interest rates and other financial assumptions |
( |
( |
- | ( |
||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates |
( |
- | ||||||||||||||
Variable fee approach |
||||||||||||||||
Change in fair value of the underlying assets of products with direct participating features |
- | - | ||||||||||||||
Change in fulfilment value of products with direct participating features not recognized in CSM due to risk mitigation option |
( |
- | - | ( |
||||||||||||
Insurance finance (income) / expenses |
||||||||||||||||
Premiums received |
- | - | ||||||||||||||
Claims, benefits, and expenses paid |
( |
- | - | ( |
||||||||||||
Acquisition costs paid |
( |
- | - | ( |
||||||||||||
Other |
( |
- | - | ( |
||||||||||||
Cash flows |
( |
- |
- |
( |
||||||||||||
Contracts disposed during the period |
( |
( |
||||||||||||||
Transfers to disposal groups |
( |
( |
||||||||||||||
Other |
( |
- | ( |
|||||||||||||
Other movements |
( |
( |
||||||||||||||
Net exchange differences |
||||||||||||||||
Net balance, on June 30, 2024 |
||||||||||||||||
Closing assets |
( |
( |
||||||||||||||
Closing liabilities |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
37 |
EUR millions |
Best estimate liability |
Risk adjustment |
Contractual service margin |
Total |
||||||||||||
Opening assets |
- | ( |
||||||||||||||
Opening liabilities |
||||||||||||||||
Net balance, on January 1, 2023 |
||||||||||||||||
Changes in estimates that adjust contractual service margin |
( |
( |
- | |||||||||||||
Changes in estimates that result in (a reversal of) onerous contracts |
- | |||||||||||||||
New contracts issued – non-onerous |
( |
- | ||||||||||||||
New contracts issued – onerous |
- | |||||||||||||||
Changes that relate to future service |
||||||||||||||||
Earnings released from contractual service margin |
- | - | ( |
( |
||||||||||||
Release of risk adjustment |
- | ( |
- | ( |
||||||||||||
Experience adjustments on current service |
- | - | ||||||||||||||
Revenue recognized for incurred policyholder tax expenses |
( |
- | - | ( |
||||||||||||
Changes that relate to current service |
( |
( |
( |
|||||||||||||
Experience adjustments on claims incurred |
- | - | ||||||||||||||
Changes that relate to past service |
- |
- |
||||||||||||||
Insurance service result |
( |
( |
||||||||||||||
General model |
||||||||||||||||
Interest accreted to insurance contracts |
||||||||||||||||
Changes in interest rates and other financial assumptions |
- | |||||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates |
( |
- | ||||||||||||||
Variable fee approach |
||||||||||||||||
Change in fair value of the underlying assets of products with direct participating features |
- | - | ||||||||||||||
Change in fulfilment value of products with direct participating features not recognized in CSM due to risk mitigation option |
( |
- | - | ( |
||||||||||||
Insurance finance (income) / expenses |
||||||||||||||||
Premiums received |
- | - | ||||||||||||||
Claims, benefits, and expenses paid |
( |
- | - | ( |
||||||||||||
Acquisition costs paid |
( |
- | - | ( |
||||||||||||
Other |
( |
- | - | ( |
||||||||||||
Cash flows |
( |
- |
- |
( |
||||||||||||
Contracts disposed during the period |
( |
( |
( |
( |
||||||||||||
Transfers to disposal groups |
( |
( |
( |
( |
||||||||||||
Other |
- | ( |
||||||||||||||
Transfer (to)/from other headings |
( |
( |
( |
( |
||||||||||||
Other movements |
( |
( |
( |
( |
||||||||||||
Net exchange differences |
( |
( |
( |
( |
||||||||||||
Net balance, on December 31, 2023 |
||||||||||||||||
Closing assets |
( |
( |
||||||||||||||
Closing liabilities |
Unaudited |
Aegon Ltd. Form 6-K for th e si x months ended June 30, 2024 |
38 |
Reinsurance contracts held not measured under the PAA - movement schedule by component |
||||||||||||||||
EUR millions |
Best estimate liability |
Risk adjustment |
Contractual service margin |
Total |
||||||||||||
Opening assets |
( |
|||||||||||||||
Opening liabilities |
( |
( |
||||||||||||||
Net balance, on January 1, 2024 |
||||||||||||||||
Changes in estimates that adjust the contractual service margin |
( |
( |
- | |||||||||||||
Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts |
( |
|||||||||||||||
New reinsurance contracts issued / acquired recognized in the year |
( |
|||||||||||||||
Changes that relate to future service |
||||||||||||||||
CSM recognized for service received |
- | - | ( |
( |
||||||||||||
Release of risk adjustment |
- | ( |
- | ( |
||||||||||||
Experience adjustments on current service |
- | - | ||||||||||||||
Changes that relate to current service |
( |
( |
||||||||||||||
Experience adjustment on claims component |
- | - | ||||||||||||||
Changes that relate to past service |
- |
- |
||||||||||||||
Net income/expenses of reinsurance held |
( |
|||||||||||||||
Reinsurance finance income / (expenses) |
( |
( |
( |
|||||||||||||
Premiums paid, net of received fixed commission |
- | - | ||||||||||||||
Amounts received |
( |
- | - | ( |
||||||||||||
Cash flows |
( |
- |
- |
( |
||||||||||||
Reinsurance contracts disposed in the year |
( |
- | ( |
|||||||||||||
Other |
( |
( |
||||||||||||||
Other movements |
( |
( |
||||||||||||||
Net exchange differences |
||||||||||||||||
Net balance, on June 30, 2024 |
||||||||||||||||
Closing assets |
||||||||||||||||
Closing liabilities |
( |
( |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
39 |
EUR millions |
Best estimate liability |
Risk adjustment |
Contractual service margin |
Total |
||||||||||||
Opening assets |
( |
|||||||||||||||
Opening liabilities |
( |
( |
( |
|||||||||||||
Net balance, on January 1, 2023 |
( |
|||||||||||||||
Changes in estimates that adjust the contractual service margin |
( |
( |
- | |||||||||||||
Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts |
||||||||||||||||
New reinsurance contracts issued / acquired recognized in the year |
( |
( |
||||||||||||||
Initial recognition of onerous underlying contracts |
- | - | ||||||||||||||
Changes in contractual service margin due to establishing of loss recovery component from onerous underlying contracts |
- | - | ||||||||||||||
Changes in the contractual service margin due to reversals of a loss-recovery component other than changes in the FCF of reinsurance contracts held |
- | - | ( |
( |
||||||||||||
Changes that relate to future service |
||||||||||||||||
CSM recognized for service received |
- | - | ( |
( |
||||||||||||
Release of risk adjustment |
- | ( |
- | ( |
||||||||||||
Experience adjustments on current service |
( |
- | - | ( |
||||||||||||
Changes that relate to current service |
( |
( |
( |
( |
||||||||||||
Experience adjustment on claims component |
( |
- | - | ( |
||||||||||||
Changes that relate to past service |
( |
- |
- |
( |
||||||||||||
Net income/expenses of reinsurance held |
( |
( |
||||||||||||||
Reinsurance finance income / (expenses) |
( |
|||||||||||||||
Premiums paid, net of received fixed commission |
- | - | ||||||||||||||
Amounts received |
( |
- | - | ( |
||||||||||||
Cash flows |
( |
- |
- |
( |
||||||||||||
Transfers to disposal groups |
( |
( |
( |
( |
||||||||||||
Other |
- | |||||||||||||||
Other movements |
( |
( |
( |
( |
||||||||||||
Net exchange differences |
( |
( |
( |
|||||||||||||
Net balance, on December 31, 2023 |
||||||||||||||||
Closing assets |
( |
|||||||||||||||
Closing liabilities |
( |
( |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
40 |
EUR millions |
Best estimate liability |
Risk adjustment |
Contractual service margin |
Total |
||||||||||||
Opening assets |
- |
- |
- |
- |
||||||||||||
Opening liabilities |
||||||||||||||||
Net balance, on January 1, 2024 |
||||||||||||||||
Changes in estimates that adjust contractual service margin |
( |
( |
- |
|||||||||||||
Changes that relate to future service |
( |
( |
- |
|||||||||||||
Earnings released from contractual service margin |
- |
- |
( |
( |
||||||||||||
Release of risk adjustment |
- |
( |
- |
( |
||||||||||||
Experience adjustments on current service |
- |
- |
||||||||||||||
Changes that relate to current service |
( |
( |
( |
|||||||||||||
Insurance service result |
( |
( |
( |
|||||||||||||
General model |
||||||||||||||||
Variable fee approach |
||||||||||||||||
Change in fair value of the underlying assets of products with direct participating features |
- |
- |
||||||||||||||
Insurance finance income / (expenses) |
- |
- |
||||||||||||||
Premiums received |
- |
- |
||||||||||||||
Claims, benefits, and expenses paid |
( |
- |
- |
( |
||||||||||||
Cash flows |
( |
- |
- |
( |
||||||||||||
Net exchange differences |
||||||||||||||||
Net balance, on June 30, 2024 |
||||||||||||||||
Closing assets |
- |
- |
- |
- |
||||||||||||
Closing liabilities |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
41 |
EUR millions |
Best estimate liability |
Risk adjustment |
Contractual service margin |
Total |
||||||||||||
Opening assets |
- |
- |
- |
- |
||||||||||||
Opening liabilities |
||||||||||||||||
Net balance, on January 1, 2023 |
||||||||||||||||
Changes in estimates that adjust contractual service margin |
( |
- |
||||||||||||||
Changes that relate to future service |
( |
- |
||||||||||||||
Earnings released from contractual service margin |
- |
- |
( |
( |
||||||||||||
Release of risk adjustment |
- |
( |
- |
( |
||||||||||||
Experience adjustments on current service |
- |
- |
||||||||||||||
Changes that relate to current service |
( |
( |
( |
|||||||||||||
Insurance service result |
( |
( |
||||||||||||||
General model |
||||||||||||||||
Variable fee approach |
||||||||||||||||
Change in fair value of the underlying assets of products with direct participating features |
- |
- |
||||||||||||||
Insurance finance income / (expenses) |
- |
- |
||||||||||||||
Premiums received |
- |
- |
||||||||||||||
Claims, benefits, and expenses paid |
( |
- |
- |
( |
||||||||||||
Cash flows |
( |
- |
- |
( |
||||||||||||
Other |
- |
|||||||||||||||
Other movements |
- |
|||||||||||||||
Net exchange differences |
||||||||||||||||
Net balance, on December 31, 2023 |
||||||||||||||||
Closing assets |
- |
- |
- |
- |
||||||||||||
Closing liabilities |
Unaudited |
Aegon Ltd. Form 6-K for the six mont hs ended June 30, 2024 |
42 |
Insurance contracts |
Investment contracts with DPF |
Reinsurance contracts held |
||||||||||||||||||||||||||||||||||||||||||||||
EUR millions |
MRA |
FVA |
Other |
Total CSM |
MRA |
FVA |
Other |
Total CSM |
MRA |
FVA |
Other |
Total CSM |
||||||||||||||||||||||||||||||||||||
On January 1, 2024 |
- |
- |
- |
( |
||||||||||||||||||||||||||||||||||||||||||||
Changes in estimates that adjust CSM |
( |
( |
- |
- |
- |
( |
||||||||||||||||||||||||||||||||||||||||||
Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts |
- |
- |
- |
- |
- |
- |
- |
- |
- |
( |
( |
( |
||||||||||||||||||||||||||||||||||||
New contracts issued: non-onerous |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||||||||||
Earnings released from contractual service margin |
( |
( |
( |
( |
- |
( |
- |
( |
- |
( |
( |
|||||||||||||||||||||||||||||||||||||
Insurance finance income / (expense) |
- |
- |
- |
- |
- |
( |
( |
|||||||||||||||||||||||||||||||||||||||||
Cash flow - contracts disposed |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||||||||||
Net exchange differences |
- |
- |
- |
( |
||||||||||||||||||||||||||||||||||||||||||||
Other |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||||||||||||
On June 30, 2024 |
- |
- |
- |
Insurance contracts |
Investment contracts with DPF |
Reinsurance contracts held |
||||||||||||||||||||||||||||||||||||||||||||||
EUR millions |
MRA |
FVA |
Other |
Total CSM |
MRA |
FVA |
Other |
Total CSM |
MRA |
FVA |
Other |
Total CSM |
||||||||||||||||||||||||||||||||||||
On January 1, 2023 |
- |
- |
( |
( |
||||||||||||||||||||||||||||||||||||||||||||
Changes in estimates that adjust CSM |
( |
( |
( |
( |
- |
- |
( |
( |
( |
|||||||||||||||||||||||||||||||||||||||
Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||||||||||||||||
New contracts issued: non-onerous |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||||||||||
Earnings released from contractual service margin |
( |
( |
( |
( |
- |
( |
- |
( |
- |
( |
( |
|||||||||||||||||||||||||||||||||||||
Insurance finance income / (expense) |
- |
- |
- |
- |
- |
( |
( |
|||||||||||||||||||||||||||||||||||||||||
Cash flow - contracts disposed |
- |
( |
- |
( |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||||||
Net exchange differences |
( |
( |
( |
( |
- |
- |
( |
( |
||||||||||||||||||||||||||||||||||||||||
Other |
( |
( |
( |
- |
- |
( |
( |
( |
( |
|||||||||||||||||||||||||||||||||||||||
On December 31, 2023 |
- |
- |
- |
( |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
43 |
Yield curves (zero coupon rates excluding ILP) June 30, 2024 |
1 year |
5 years |
10 years |
15 years |
20 years |
30 years | ||||||
EUR |
||||||||||||
GBP |
||||||||||||
USD |
Yield curves (zero coupon rates excluding ILP) December 31, 2023 |
1 year |
5 years |
10 years |
15 years |
20 years |
30 years | ||||||
EUR |
||||||||||||
GBP |
||||||||||||
USD |
Unaudited |
Aegon Ltd. Form 6-K fo r the six months ended June 30, 2024 |
44 |
ILP by portfolio June 30, 2024 |
1 year |
5 years |
10 years |
15 years |
20 years |
30 years | ||||||
Fixed Deferred Annuity |
||||||||||||
Indexed Universal Life |
||||||||||||
Long Term Care |
||||||||||||
Traditional Life |
||||||||||||
Universal Life |
||||||||||||
Variable Annuities |
||||||||||||
Annuities |
||||||||||||
Individual Protection |
ILP by portfolio December 31, 2023 |
1 year |
5 years |
10 years |
15 years |
20 years |
30 years | ||||||
Fixed Deferred Annuity |
||||||||||||
Indexed Universal Life |
||||||||||||
Long Term Care |
||||||||||||
Traditional Life |
||||||||||||
Universal Life |
||||||||||||
Variable Annuities |
||||||||||||
Annuities |
||||||||||||
Individual Protection |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
45 |
EUR millions |
June 30, 2024 |
December 31, 2023 |
||||||
Investment contracts without DPF where Aegon bears the risk |
||||||||
Investment contracts without DPF where policyholders bear the risk |
||||||||
Total investment contracts without DPF |
EUR millions |
1H 2024 |
FY 2023 |
||||||
Opening balance |
||||||||
Deposits |
||||||||
Withdrawals |
( |
( |
||||||
Interest credited |
||||||||
Net exchange differences |
( |
|||||||
Transfer to/from other headings |
||||||||
Other |
( |
( |
||||||
Closing balance |
Unaud ited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
46 |
EUR millions |
1H 2024 |
FY 2023 |
||||||
Opening balance |
||||||||
Gross premium and deposits – existing and new business |
||||||||
Withdrawals |
( |
( |
||||||
Interest credited |
||||||||
Fund charges released |
( |
( |
||||||
Net exchange differences |
( |
|||||||
Transfer to/from other headings |
( |
( |
||||||
Other |
||||||||
Closing balance |
EUR millions |
June 30, 2024 |
December 31, 2023 |
||||||
Capital funding |
||||||||
Operational funding |
||||||||
Total borrowings |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
47 |
June 30, 2024 | 2025 | 2026 | 2027 | 2028 | Units | |||||||||||||||
Interest rates |
Base | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA) ¹ | ||||||||||||||||||
Upside | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA) ¹ | |||||||||||||||||||
Downside | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA) ¹ | |||||||||||||||||||
Unemployment rate |
Base | (%, SA) | ||||||||||||||||||
Upside | (%, SA) | |||||||||||||||||||
Downside | (%, SA) | |||||||||||||||||||
House Price Index |
Base | Existing Single-Family Home Price: Median, (Ths. USD, SA) | ||||||||||||||||||
Upside | Existing Single-Family Home Price: Median, (Ths. USD, SA) | |||||||||||||||||||
Downside | Existing Single-Family Home Price: Median, (Ths. USD, SA) | |||||||||||||||||||
Domestic GDP |
Base | Bil. Ch. 2012 USD, SAAR2 | ||||||||||||||||||
Upside | Bil. Ch. 2012 USD, SAAR 2 | |||||||||||||||||||
Downside | Bil. Ch. 2012 USD, SAAR 2 | |||||||||||||||||||
Equity |
Base | Standard & Poor’s (S&P); Moody’s Analytics Forecasted | ||||||||||||||||||
Upside | Standard & Poor’s (S&P); Moody’s Analytics Forecasted | |||||||||||||||||||
Downside | Standard & Poor’s (S&P); Moody’s Analytics Forecasted |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
48 |
December 31, 2023 | 2024 | 2025 | 2026 | 2027 | Units | |||||||||||||||
Interest rates |
Base | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA) ¹ | ||||||||||||||||||
Upside | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA) ¹ | |||||||||||||||||||
Downside | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA) ¹ | |||||||||||||||||||
Unemployment rate |
Base | (%, SA) | ||||||||||||||||||
Upside | (%, SA) | |||||||||||||||||||
Downside | (%, SA) | |||||||||||||||||||
House Price Index |
Base | Existing Single-Family Home Price: Median, (Ths. USD, SA) | ||||||||||||||||||
Upside | Existing Single-Family Home Price: Median, (Ths. USD, SA) | |||||||||||||||||||
Downside | Existing Single-Family Home Price: Median, (Ths. USD, SA) | |||||||||||||||||||
Domestic GDP |
Base | Bil. Ch. 2012 USD, SAAR 2 | ||||||||||||||||||
Upside | Bil. Ch. 2012 USD, SAAR 2 | |||||||||||||||||||
Downside | Bil. Ch. 2012 USD, SAAR 2 | |||||||||||||||||||
Equity |
Base | Standard & Poor’s (S&P); Moody’s Analytics Forecasted | ||||||||||||||||||
Upside | Standard & Poor’s (S&P); Moody’s Analytics Forecasted | |||||||||||||||||||
Downside | Standard & Poor’s (S&P); Moody’s Analytics Forecasted |
Base |
Upside |
Downside |
||||||||||
On June 30, 2024 |
||||||||||||
On December 31, 2023 |
◆ |
Transfers between Stages 1, 2 and 3 due to financial instruments experiencing significant increases (or decreases) of credit risk or becoming credit-impaired in the period, and the consequent “step up” (or “step down”) between 12-month and lifetime ECL; |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
49 |
◆ |
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments de-recognized in the period; |
◆ |
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of inputs to models; |
◆ |
Impacts on the measurement of ECL due to changes made to models and assumptions; |
◆ |
Discounts unwind within ECL due to the passage of time, as ECL is measured on a present value basis; |
◆ |
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and, |
◆ |
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during the period. |
EUR millions |
2024 | |||||||||||||||||||||||||||||||||||
First | ||||||||||||||||||||||||||||||||||||
Half year | ||||||||||||||||||||||||||||||||||||
Gross amount | ECL | |||||||||||||||||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | |||||||||||||||||||||||||||||||
|
(12-month ECL) |
|
|
(Lifetime ECL) |
|
|
(Lifetime ECL) ¹ |
|
Total gross amount |
|
(12-month ECL) |
|
|
(Lifetime ECL) |
|
|
(Lifetime ECL) ¹ |
|
Total ECL |
Net carrying amount |
||||||||||||||||
Loans |
||||||||||||||||||||||||||||||||||||
Balance on December 31, prior year |
- | ( |
( |
- | ( |
|||||||||||||||||||||||||||||||
Acquisition |
- | - | - | - | - |
|||||||||||||||||||||||||||||||
Disposal |
( |
( |
- | ( |
- | - | - | ( |
||||||||||||||||||||||||||||
ECL transfer from stage 1 to stage 2 |
( |
- | - |
( |
- | - |
- |
|||||||||||||||||||||||||||||
ECL transfer from stage 1 to stage 3 |
( |
- | - |
- | - | - | - |
- |
||||||||||||||||||||||||||||
Impact on year-end ECL |
- | - | - | - |
- | - | ( |
( |
( |
|||||||||||||||||||||||||||
Realized gains and losses through income statement |
- | - | - | - | - |
|||||||||||||||||||||||||||||||
Change in models |
- | - | - | - |
( |
- | ( |
( |
||||||||||||||||||||||||||||
Other movements |
- | - | - | ( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
CTA on opening balance |
- | ( |
- | - | ( |
|||||||||||||||||||||||||||||||
CTA on movements |
( |
- | - | ( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
Ending balance |
( |
( |
( |
( |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
50 |
EUR millions |
2023 |
|||||||||||||||||||||||||||||||||||
Full |
||||||||||||||||||||||||||||||||||||
Year |
||||||||||||||||||||||||||||||||||||
Gross amount |
ECL |
|||||||||||||||||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | |||||||||||||||||||||||||||||||
(12-month ECL) |
(Lifetime ECL) |
(Lifetime ECL) ¹ |
Total gross amount |
(12-month ECL) |
(Lifetime ECL) |
(Lifetime ECL) ¹ |
Total ECL |
Net carrying amount |
||||||||||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||||||||||
Balance at December 31, prior year |
- | ( |
- | - | ( |
|||||||||||||||||||||||||||||||
Acquisition |
- | - | - | - | - | - |
||||||||||||||||||||||||||||||
Disposal |
( |
( |
- | ( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
ECL transfer from stage 1 to stage 2 |
( |
- | - |
- | - | - | - |
- |
||||||||||||||||||||||||||||
Impact on year-end ECL |
- | - | - | - |
- | ( |
- | ( |
( |
|||||||||||||||||||||||||||
Change in models |
- | - | - | - |
( |
( |
- | ( |
( |
|||||||||||||||||||||||||||
CTA on opening balance |
( |
- | - | ( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
CTA on movements |
( |
( |
- | ( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
Ending balance |
- |
( |
( |
- |
( |
EUR millions |
2024 |
|||||||||||||||||||||||||||||||||||
First |
||||||||||||||||||||||||||||||||||||
Half year |
||||||||||||||||||||||||||||||||||||
Gross amount |
ECL |
|||||||||||||||||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | |||||||||||||||||||||||||||||||
(12-month ECL) |
(Lifetime ECL) |
(Lifetime ECL) ¹ |
Total gross amount |
(12-month ECL) |
(Lifetime ECL) |
(Lifetime ECL) ¹ |
Total ECL |
Net carrying amount |
||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||||||
Balance on December 31, prior year |
( |
( |
( |
( |
||||||||||||||||||||||||||||||||
Acquisition |
( |
( |
( |
( |
||||||||||||||||||||||||||||||||
Disposal |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||||||
ECL transfer from stage 1 to stage 2 |
( |
- | - |
( |
- | - |
- |
|||||||||||||||||||||||||||||
ECL transfer from stage 1 to stage 3 |
( |
- | - |
- | - | - | - |
- |
||||||||||||||||||||||||||||
ECL transfer from stage 2 to stage 1 |
( |
- | - |
( |
- | - |
- |
|||||||||||||||||||||||||||||
ECL transfer from stage 2 to stage 3 |
- | ( |
- |
- | ( |
- |
- |
|||||||||||||||||||||||||||||
ECL transfer from stage 3 to stage 2 |
- | ( |
- |
- | ( |
- |
- |
|||||||||||||||||||||||||||||
Impact on year-end ECL |
- | - | - | - |
- | ( |
( |
( |
( |
|||||||||||||||||||||||||||
Amortizations through income statement |
- | - | - | - | - |
|||||||||||||||||||||||||||||||
Unrealized gains/losses through equity |
( |
( |
( |
( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
Movements related to fair value hedges |
( |
- | - | ( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
Change in models |
- | - | - | - |
- | ( |
||||||||||||||||||||||||||||||
Other movements |
- | - | ( |
( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
Transfer to/from other headings |
( |
- | ( |
- | - | - | - |
( |
||||||||||||||||||||||||||||
CTA on opening balance |
( |
( |
( |
( |
||||||||||||||||||||||||||||||||
CTA on movements |
( |
- | ( |
( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
Ending balance |
( |
( |
( |
( |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 51 |
EUR millions |
2023 |
|||||||||||||||||||||||||||||||||||
Full |
||||||||||||||||||||||||||||||||||||
Year |
||||||||||||||||||||||||||||||||||||
Gross amount |
ECL |
|||||||||||||||||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | |||||||||||||||||||||||||||||||
(12-month ECL) |
(Lifetime ECL) |
(Lifetime ECL) ¹ |
Total gross amount |
(12-month ECL) |
(Lifetime ECL) |
(Lifetime ECL) ¹ |
Total ECL |
Net carrying amount |
||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||||||
Balance on December 31, prior year |
( |
( |
( |
( |
||||||||||||||||||||||||||||||||
Acquisition |
( |
( |
( |
( |
||||||||||||||||||||||||||||||||
Acquisitions through business combination |
- | - | - | - | - | - |
||||||||||||||||||||||||||||||
Disposal |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||||||
Disposal of a business |
( |
- | - | ( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
ECL transfer from stage 1 to stage 2 |
( |
- | - |
( |
- | - |
- |
|||||||||||||||||||||||||||||
ECL transfer from stage 1 to stage 3 |
( |
- | - |
- | ( |
- |
- |
|||||||||||||||||||||||||||||
ECL transfer from stage 2 to stage 1 |
( |
- | - |
( |
- | - |
- |
|||||||||||||||||||||||||||||
ECL transfer from stage 2 to stage 3 |
- | ( |
- |
- | ( |
- |
- |
|||||||||||||||||||||||||||||
ECL transfer from stage 3 to stage 2 |
- | ( |
- |
- | ( |
- |
- |
|||||||||||||||||||||||||||||
ECL transfer from stage 3 to stage 1 |
- | ( |
- |
( |
- | - |
- |
|||||||||||||||||||||||||||||
Impact on year-end ECL |
- | - | - | - |
( |
( |
( |
( |
||||||||||||||||||||||||||||
Amortizations through income statement |
- | - | - | - | - |
|||||||||||||||||||||||||||||||
Unrealized gains/losses through equity |
( |
- | - | - | - |
|||||||||||||||||||||||||||||||
Change in models |
- | - | - | - |
( |
( |
( |
( |
||||||||||||||||||||||||||||
Other movements |
( |
- | - | ( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
Transfer to/from other headings |
( |
- | - | ( |
- | - | - | - |
( |
|||||||||||||||||||||||||||
CTA on opening balance |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||||||
CTA on movements |
- | - | - | ( |
||||||||||||||||||||||||||||||||
Ending balance |
( |
( |
( |
( |
EUR millions |
June 30, 2024 ¹ | December 31, 2023 | ||||||
Group Own Funds |
||||||||
Group SCR |
||||||||
Group Solvency ratio |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 52 |
EUR millions |
June 30, 2024 ¹ | December 31, 2023 | ||
Tier 1- unrestricted |
||||
Tier 1- restricted |
||||
Tier 2 | ||||
Tier 3 | ||||
Total Eligible Own Funds |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
53 |
Unaudited |
Aegon Ltd. Form 6-K for the six months ended June 30, 2024 |
54 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 55 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 56 |
Aegon Americas Business update |
unaudited |
|||||||||||||||
USD millions |
Notes |
1H 2024 |
1H 2023 |
% |
||||||||||||
Distribution KPIs - World Financial Group (WFG) |
||||||||||||||||
Number of licensed agents (end of period) |
78,978 | 69,846 | 13 | |||||||||||||
Number of multi-ticket agents (end of period) |
37,476 | 34,265 | 9 | |||||||||||||
Transamerica’s market share in WFG (US Life) |
64 | % | 64 | % | - | |||||||||||
Savings & Investments KPIs |
||||||||||||||||
Gross deposits Retirement Plans |
16,524 | 14,084 | 17 | |||||||||||||
Net deposits Retirement Plans |
(839 | ) | (1,035 | ) | 19 | |||||||||||
of which: net deposits mid-sized Retirement Plans |
1,166 | 995 | 17 | |||||||||||||
Individual Retirement Accounts AuA |
11,339 | 9,539 | 19 | |||||||||||||
General Account Stable Value AuA |
11,384 | 10,732 | 6 | |||||||||||||
Gross deposits Mutual Funds |
2,205 | 3,001 | (27 | ) | ||||||||||||
Net deposits Mutual Funds |
(1,223 | ) | (246 | ) | n.m. | |||||||||||
Protection Solutions KPIs |
||||||||||||||||
Term Life |
34 | 39 | (13 | ) | ||||||||||||
Whole Life |
26 | 23 | 14 | |||||||||||||
Traditional Life |
60 | 62 | (3 | ) | ||||||||||||
Indexed Universal Life |
184 | 171 | 8 | |||||||||||||
New life sales (recurring plus 1/10 single) |
2 |
245 |
233 |
|||||||||||||
Individual Life |
5 |
|||||||||||||||
Traditional Life |
4 | 6 | (30 | ) | ||||||||||||
Universal Life |
35 | 37 | (4 | ) | ||||||||||||
New life sales (recurring plus 1/10 single) |
2 |
|||||||||||||||
Workplace Life |
40 |
43 |
(8 |
) | ||||||||||||
New premium production Workplace Health |
67 | 61 | 10 | |||||||||||||
Net deposits Indexed Annuities |
505 | 179 | 183 | |||||||||||||
Financial Assets KPIs |
||||||||||||||||
Capital employed in Financial Assets (at operating level) |
3,462 | 4,082 | (15 | ) | ||||||||||||
Net deposits Variable Annuities |
(3,069 | ) | (2,369 | ) | (30 | ) | ||||||||||
Net deposits Fixed Annuities (excluding SPGAs) |
(377 | ) | (405 | ) | 7 | |||||||||||
Variable Annuities dynamic hedge effectiveness ratio (%) ¹ |
99 | % | 98 | % | 1 | |||||||||||
LTC actual to expected claim ratio (%) (IFRS) |
103 | % | 83 | % | 25 | |||||||||||
NPV of LTC rate increases approved since end-2022 |
395 | 86 | n.m. |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 57 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 58 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 59 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 60 |
Aegon United Kingdom Business update |
unaudited |
|||||||||||||||
GBP millions |
Notes | 1H 2024 | 1H 2023 | % | ||||||||||||
Adviser Platform |
(1,761 | ) | (1,137 | ) | (55 | ) | ||||||||||
Workplace Platform |
1,694 | 1,505 | 13 | |||||||||||||
Total Platform |
(67 | ) | 368 | n.m. | ||||||||||||
Institutional |
1,238 | 3,025 | (59 | ) | ||||||||||||
Traditional products |
(797 | ) | (524 | ) | (52 | ) | ||||||||||
Net deposits/(outflows) |
373 |
2,870 |
(87 |
) | ||||||||||||
Adviser Platform |
51,625 | 49,584 | 4 | |||||||||||||
Workplace Platform |
59,035 | 49,879 | 18 | |||||||||||||
Total Platform |
110,660 | 99,463 | 11 | |||||||||||||
Institutional |
74,515 | 66,055 | 13 | |||||||||||||
Traditional products |
31,253 | 29,684 | 5 | |||||||||||||
Assets under Administration at end of period |
216,428 |
195,201 |
11 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 61 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 62 |
International |
unaudited |
|||||||||||||||
Business update |
||||||||||||||||
EUR millions |
Notes | 1H 2024 | 1H 2023 | % |
||||||||||||
Spain & Portugal |
17 | 25 | (32 |
) | ||||||||||||
China |
44 | 82 | (46 |
) | ||||||||||||
Brazil |
64 | 59 | 9 |
|||||||||||||
TLB and others |
14 | 9 | 48 |
|||||||||||||
New life sales (recurring plus 1/10 single) |
2,7 |
140 |
175 |
(20 |
) | |||||||||||
New premium production accident & health insurance |
23 | 29 | (19 |
) | ||||||||||||
New premium production property & casualty insurance |
36 | 38 | (5 |
) |
¨ |
New life sales in Spain & Portugal decreased by EUR 8 million to EUR 17 million due to lower sales, driven by the high interest rate environment which continues to affect mortgage sales in Spain. |
¨ |
New life sales in China decreased by EUR 37 million to EUR 44 million, mostly driven by the negative impact of a pricing regulation related to insurance products with guaranteed interest rates. |
¨ |
New life sales in Brazil increased by EUR 5 million to EUR 64 million, reflecting the impact of Aegon’s increased economic stake and continued business growth in both group and individual products. |
¨ |
For TLB and others, new life sales grew to EUR 14 million, an increase of EUR 4 million compared with the first half of 2023, driven by higher indexed universal life sales due to broadened distribution and the launch of an upgraded product. |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 63 |
Asset Management |
unaudited |
|||||||||||||||
Business update |
||||||||||||||||
EUR millions |
Notes | 1H 2024 | 1H 2023 | % |
||||||||||||
General Account |
(1,677 | ) | (693 | ) | (142 |
) | ||||||||||
Affiliate |
(1,415 | ) | (542 | ) | (161 |
) | ||||||||||
Third Party |
5,108 | (574 | ) | n.m. |
||||||||||||
Global Platforms |
2,016 | (1,808 | ) | n.m. |
||||||||||||
Strategic Partnerships |
2,682 | (615 | ) | n.m. |
||||||||||||
Net deposits/(outflows) |
7 |
4,698 |
(2,424 |
) |
n.m. |
|||||||||||
Strategic KPIs |
||||||||||||||||
Annualized revenues gained/(lost) on net deposits - Global Platforms |
4.0 | 0.8 | n.m. |
|||||||||||||
General Account |
68,336 | 90,765 | (25 |
) | ||||||||||||
Affiliate |
41,344 | 63,698 | (35 |
) | ||||||||||||
Third Party |
149,254 | 83,834 | 78 |
|||||||||||||
Global Platforms |
258,935 | 238,297 | 9 |
|||||||||||||
Strategic Partnerships |
59,284 | 54,799 | 8 |
|||||||||||||
Assets under Management |
318,218 |
293,096 |
9 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 64 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 65 |
Aegon Ltd. |
unaudited |
|||||||||||||||||||
Main capital ratios |
||||||||||||||||||||
2024 | 2024 | 2023 | ||||||||||||||||||
in millions |
Notes | Jun. 30 | Mar. 31 | % | Dec. 31 | |||||||||||||||
United States (USD) |
||||||||||||||||||||
Available capital |
8,075 | 8,240 | (2 | ) | 8,106 | |||||||||||||||
Required capital |
1,810 | 1,869 | (3 | ) | 1,878 | |||||||||||||||
US RBC ratio |
446% |
441% |
432% |
|||||||||||||||||
Scottish Equitable plc (UK) (GBP) |
||||||||||||||||||||
Own funds |
2,373 | 2,358 | 1 | 2,220 | ||||||||||||||||
SCR |
1,257 | 1,229 | 2 | 1,190 | ||||||||||||||||
UK SE Solvency II ratio |
189% |
192% |
187% |
|||||||||||||||||
Aegon Ltd. (EUR) |
||||||||||||||||||||
Eligible own funds |
14,155 | 13,984 | 1 | 14,250 | ||||||||||||||||
Consolidated Group SCR |
7,462 | 7,559 | (1 | ) | 7,366 | |||||||||||||||
Group solvency ratio |
8,9 | 190% |
185% |
193% |
Aegon Ltd. |
unaudited |
|||||||||||||||
Cash Capital at Holding |
||||||||||||||||
EUR millions |
Notes | 1H 2024 | 1H 2023 | % |
||||||||||||
Beginning of period |
2,387 |
1,614 |
48 |
|||||||||||||
Americas |
269 | 256 | 5 |
|||||||||||||
United Kingdom |
59 | 64 | (8 |
) | ||||||||||||
International |
35 | 15 | 127 |
|||||||||||||
Asset Management |
31 | 80 | (62 |
) | ||||||||||||
Dividend received from a.s.r. |
114 | - | n.m. |
|||||||||||||
Holding and other activities |
- | - | n.m. |
|||||||||||||
Gross remittances |
508 |
416 |
22 |
|||||||||||||
Funding and operating expenses |
(135 | ) | (129 | ) | (5 |
) | ||||||||||
Free cash flow |
373 |
287 |
30 |
|||||||||||||
Divestitures and acquisitions |
16 | (61 | ) | n.m. |
||||||||||||
Capital injections |
(38 | ) | (60 | ) | 36 |
|||||||||||
Capital flows from / (to) shareholders |
(686 | ) | (433 | ) | (59 |
) | ||||||||||
Net change in gross financial leverage |
8 | - | n.m. |
|||||||||||||
Other |
30 | (31 | ) | n.m. |
||||||||||||
End of period |
2,090 |
1,315 |
59 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 66 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 67 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 68 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 69 |
Aegon Ltd. |
unaudited |
|||||||||||||||
Results overview |
||||||||||||||||
EUR millions |
Notes | 1H 2024 | 1H 2023 | % | ||||||||||||
Distribution |
88 | 74 | 20 | |||||||||||||
Savings & Investments |
132 | 115 | 14 | |||||||||||||
Protection Solutions |
270 | 198 | 37 | |||||||||||||
Financial Assets |
59 | 242 | (75 | ) | ||||||||||||
Americas |
550 | 628 | (12 | ) | ||||||||||||
United Kingdom |
94 | 111 | (15 | ) | ||||||||||||
Spain & Portugal |
44 | 41 | 8 | |||||||||||||
China (ATHTF) |
14 | 10 | 34 | |||||||||||||
Brazil |
26 | 19 | 35 | |||||||||||||
TLB |
15 | 27 | (45 | ) | ||||||||||||
Other |
(8 | ) | (2 | ) | n.m. |
|||||||||||
International |
90 | 95 | (5 | ) | ||||||||||||
Global Platforms |
23 | 12 | 93 | |||||||||||||
Strategic Partnerships |
84 | 62 | 35 | |||||||||||||
Asset Management |
107 | 74 | 44 | |||||||||||||
Holding and other activities |
(91 | ) | (91 | ) | (1 | ) | ||||||||||
Operating result |
1 | 750 |
818 |
(8 |
) | |||||||||||
Fair value items |
(312 | ) | 11 | n.m. | ||||||||||||
Realized gains / (losses) on investments |
(45 | ) | (95 | ) | 53 | |||||||||||
Net impairments |
(72 | ) | (96 | ) | 25 | |||||||||||
Non-operating items |
(430 | ) | (180 | ) | (138 |
) | ||||||||||
Other income / (charges) |
4 | (403 | ) | (870 | ) | 54 | ||||||||||
Result before tax |
(83 |
) |
(232 |
) |
64 |
|||||||||||
Income tax |
18 | 33 | (46 | ) | ||||||||||||
Net result |
(65 |
) |
(199 |
) |
67 |
|||||||||||
Interest on financial leverage classified as equity after tax |
(39 | ) | (24 | ) | (60 | ) | ||||||||||
Net result after interest on financial leverage classified as equity |
(104 |
) |
(223 |
) |
53 |
|||||||||||
Average common shareholders’ equity |
7,103 | 8,456 | (16 | ) | ||||||||||||
Return on Equity 1 |
3 | 16.0% |
15.6% |
|||||||||||||
Americas |
773 | 737 | 5 | |||||||||||||
United Kingdom |
214 | 189 | 13 | |||||||||||||
International |
72 | 65 | 10 | |||||||||||||
Asset Management |
184 | 181 | 2 | |||||||||||||
Holding and other activities |
54 | 53 | - | |||||||||||||
Addressable expenses 2 |
5 | 1,297 |
1,226 |
6 |
||||||||||||
Operating expenses |
1,509 |
1,497 |
1 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 70 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 71 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 72 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 73 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 74 |
Aegon Ltd. |
unaudited |
|||||||||||||||
Balance sheet items |
||||||||||||||||
EUR millions |
Notes | 2024 Jun. 30 |
2023 Dec. 31 |
% | ||||||||||||
Shareholders’ equity |
6,554 |
7,475 |
(12) |
|||||||||||||
Gross financial leverage |
5,122 | 5,064 | 1 |
|||||||||||||
Gross financial leverage ratio (%) |
27.5% | 26.5% | ||||||||||||||
Americas |
5,310 | 5,063 | 5 |
|||||||||||||
United Kingdom |
1,306 | 1,194 | 9 |
|||||||||||||
International |
142 | 129 | 10 |
|||||||||||||
Eliminations |
29 | 16 | 79 |
|||||||||||||
Contractual Service Margin (CSM) 1 (pro-forma after tax) |
6,787 |
6,403 |
6 |
Aegon Ltd. |
unaudited |
|||||||||||||||
Contractual Service Margin (CSM) |
||||||||||||||||
EUR millions |
Notes | 1H 2024 | 1H 2023 | % | ||||||||||||
CSM balance at beginning of period |
8,251 |
9,128 |
(10 |
) | ||||||||||||
New business |
263 | 194 | 36 |
|||||||||||||
CSM release |
(491 | ) | (483 | ) | (2 |
) | ||||||||||
Accretion of interest |
120 | 126 | (5 |
) | ||||||||||||
Claims and policyholder experience variance |
(23 | ) | (163 | ) | 86 |
|||||||||||
Non-financial assumption changes |
(90 | ) | (554 | ) | 84 |
|||||||||||
Non-disaggregated risk adjustment |
79 | (107 | ) | n.m. |
||||||||||||
Market impact on unhedged risk of VFA products |
400 | 345 | 16 |
|||||||||||||
Net exchange differences |
240 | (105 | ) | n.m. |
||||||||||||
Transfer to disposal groups |
(8 | ) | - | n.m. |
||||||||||||
Other movements |
8 | (78 | ) | n.m. |
||||||||||||
CSM balance at end of period |
8,748 |
8,302 |
5 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 75 |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 76 |
◆ |
Promoting strong capital adequacy in Aegon’s businesses and operating units |
◆ |
Managing and allocating capital efficiently in support of the strategy and in line with its risk tolerance |
◆ |
Maintaining an efficient capital structure, with an emphasis on optimizing Aegon’s cost of capital |
◆ |
Maintaining adequate liquidity in both the operating units and the Holding to ensure that the company is able to meet its obligations by enforcing stringent liquidity risk policies |
◆ |
Maintaining continued access to international capital markets on competitive terms |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 77 |
Capital requirements as per June 30, 2024 |
Regulatory capital requirement |
Minimum dividend payment level |
Operating level |
Actual capitalization | ||||
US RBC ratio |
100% RBC CAL | 350% | 400% | 446% | ||||
Scottish Equitalel Plc (UK) Solvency ratio |
100% SII SCR | 135% | 150% | 189% |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 78 |
◆ |
Gross financial leverage ratio |
◆ |
Fixed charge coverage |
◆ |
Various rating agency leverage metrics |
◆ |
Other metrics, including gross financial leverage divided by operating capital generation |
◆ |
Shareholders’ equity based on IFRS as adopted by the EU |
◆ |
Non-controlling interests and shares related to long-term incentive plans that have not yet vested |
◆ |
Contractual service margin, excluding joint-ventures and associates, net of tax |
◆ |
Gross (or total) financial leverage |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 79 |
June 30, 2024 |
Aegon Ltd |
Aegon USA |
Aegon UK | |||
S&P Global |
||||||
Financial strength |
A+ |
A+ | ||||
Long-term issuer |
BBB+ |
|||||
Senior debt |
BBB+ |
|||||
Subordinated debt |
BBB- |
|||||
Moody’s Investors Service |
||||||
Financial strength |
A1 |
|||||
Long-term issuer |
Baa1 |
|||||
Senior debt |
Baa1 |
|||||
Subordinated debt |
Baa2 |
|||||
A.M. Best |
||||||
Financial strength |
A |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 80 |
o |
Unexpected delays, difficulties, and expenses in executing against Aegon’s environmental, climate, diversity and inclusion or other “ESG” targets, goals and commitments, and changes in laws or regulations affecting us, such as changes in data privacy, environmental, health and safety laws; |
o |
Changes in general economic and/or governmental conditions, particularly in Bermuda, the United States and the United Kingdom; |
o |
Civil unrest, (geo-) political tensions, military action or other instability in a country or geographic region; |
o |
Changes in the performance of financial markets, including emerging markets, such as with regard to: |
• |
The frequency and severity of defaults by issuers in Aegon’s fixed income investment portfolios; |
• |
The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities Aegon holds; |
• |
The effects of declining creditworthiness of certain public sector securities and the resulting decline in the value of government exposure that Aegon holds; |
• |
The impact from volatility in credit, equity, and interest rates; |
o |
Changes in the performance of Aegon’s investment portfolio and decline in ratings of Aegon’s counterparties; |
o |
Lowering of one or more of Aegon’s debt ratings issued by recognized rating organizations and the adverse impact such action may have on Aegon’s ability to raise capital and on its liquidity and financial condition; |
o |
Lowering of one or more of insurer financial strength ratings of Aegon’s insurance subsidiaries and the adverse impact such action may have on the written premium, policy retention, profitability and liquidity of its insurance subsidiaries; |
o |
The effect of applicable Bermuda solvency requirements, the European Union’s Solvency II requirements, and applicable equivalent solvency requirements and other regulations in other jurisdictions affecting the capital Aegon is required to maintain; |
o |
Changes in the European Commissions’ or European regulator’s position on the equivalence of the supervisory regime for insurance and reinsurance undertakings in force in Bermuda; |
o |
Changes affecting interest rate levels and low or rapidly changing interest rate levels; |
o |
Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates; |
o |
Changes affecting inflation levels, particularly in the United States and the United Kingdom; |
o |
Changes in the availability of, and costs associated with, liquidity sources such as bank and capital markets funding, as well as conditions in the credit markets in general such as changes in borrower and counterparty creditworthiness; |
o |
Increasing levels of competition, particularly in the United States, the United Kingdom and emerging markets; |
o |
Catastrophic events, either manmade or by nature, including by way of example acts of God, acts of terrorism, acts of war and pandemics, could result in material losses and significantly interrupt Aegon’s business; |
o |
The frequency and severity of insured loss events; |
o |
Changes affecting longevity, mortality, morbidity, persistence and other factors that may impact the profitability of Aegon’s insurance products and management of derivatives; |
o |
Aegon’s projected results are highly sensitive to complex mathematical models of financial markets, mortality, longevity, and other dynamic systems subject to shocks and unpredictable volatility. Should assumptions to these models later prove incorrect, or should errors in those models escape the controls in place to detect them, future performance will vary from projected results; |
o |
Reinsurers to whom Aegon has ceded significant underwriting risks may fail to meet their obligations; |
o |
Changes in customer behavior and public opinion in general related to, among other things, the type of products Aegon sells, including legal, regulatory or commercial necessity to meet changing customer expectations; |
o |
Customer responsiveness to both new products and distribution channels; |
o |
Third-party information used by us may prove to be inaccurate and change over time as methodologies and data availability and quality continue to evolve impacting our results and disclosures; |
o |
As Aegon’s operations support complex transactions and are highly dependent on the proper functioning of information technology, operational risks such as system disruptions or failures, security or data privacy breaches, cyberattacks, human error, failure to safeguard personally identifiable information, changes in operational practices or inadequate controls including with respect to third parties with which Aegon does business, may disrupt Aegon’s business, damage its reputation and adversely affect its results of operations, financial condition and cash flows, and Aegon may be unable to adopt to and apply new technologies; |
o |
The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Aegon’s ability to complete, or obtain regulatory approval for, acquisitions and divestitures, integrate acquisitions, and realize anticipated results, and its ability to separate businesses as part of divestitures; |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 81 |
o |
Aegon’s failure to achieve anticipated levels of earnings or operational efficiencies, as well as other management initiatives related to cost savings, Cash Capital at Holding, gross financial leverage and free cash flow; |
o |
Changes in the policies of central banks and/or governments; |
o |
Litigation or regulatory action that could require Aegon to pay significant damages or change the way Aegon does business; |
o |
Competitive, legal, regulatory, or tax changes that affect profitability, the distribution cost of or demand for Aegon’s products; |
o |
Consequences of an actual or potential break-up of the European Monetary Union in whole or in part, or further consequences of the exit of the United Kingdom from the European Union and potential consequences if other European Union countries leave the European Union; |
o |
Changes in laws and regulations, or the interpretation thereof by regulators and courts, including as a result of comprehensive reform or shifts away from multilateral approaches to regulation of global or national operations, particularly regarding those laws and regulations related to ESG matters, those affecting Aegon’s operations’ ability to hire and retain key personnel, taxation of Aegon companies, the products Aegon sells, the attractiveness of certain products to its consumers and Aegon’s intellectual property; |
o |
Regulatory changes relating to the pensions, investment, insurance industries and enforcing adjustments in the jurisdictions in which Aegon operates; |
o |
Standard setting initiatives of supranational standard setting bodies such as the Financial Stability Board and the International Association of Insurance Supervisors or changes to such standards that may have an impact on regional (such as EU), national or US federal or state level financial regulation or the application thereof to Aegon, including the designation of Aegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII); |
o |
Changes in accounting regulations and policies or a change by Aegon in applying such regulations and policies, voluntarily or otherwise, which may affect Aegon’s reported results, shareholders’ equity or regulatory capital adequacy levels; |
o |
Changes in ESG standards and requirements, including assumptions, methodology and materiality, or a change by Aegon in applying such standards and requirements, voluntarily or otherwise, may affect Aegon’s ability to meet evolving standards and requirements, or Aegon’s ability to meet its sustainability and ESG-related goals, or related public expectations, which may also negatively affect Aegon’s reputation or the reputation of its board of directors or its management; and in other documents filed or to be filed by Aegon with the SEC |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 82 |
1) | Segment total operating result, operating result after tax, income tax (including joint ventures (jv’s) and associated companies) and result before tax (including jv’s and associated companies) are calculated by consolidating on a proportionate basis the revenues and expenses of Aegon’s joint ventures and Aegon’s associates. With the exception of Aegon’s stake in a.s.r.. The result of associate a.s.r. is included in Other income / (charges). Aegon believes that these non-IFRS measures provide meaningful information about the operating results of Aegon’s business, including insight into the financial measures that Aegon’s senior management uses in managing the business. While many other insurers in Aegon’s peer group present substantially similar non-IFRS measures, the non-IFRS measures presented in this document may nevertheless differ from the non-IFRS measures presented by other insurers. There is no standardized meaning to these measures under IFRS or any other recognized set of accounting standards. Readers are cautioned to consider carefully the different ways in which Aegon and its peers present similar information before comparing them. |
Aegon believes the non-IFRS measures shown herein, when read together with Aegon’s reported IFRS financial statements, provide meaningful supplemental information for the investing public to evaluate Aegon’s business after eliminating the impact of current IFRS accounting policies for financial instruments and insurance contracts, which embed a number of accounting policy alternatives that companies may select in presenting their results and that can make the comparability from period to period difficult. |
Aegon’s operating segments are based on the businesses as presented in internal reports that are regularly reviewed by the Executive Director which is regarded as the chief operating decision maker. |
Segment information |
unaudited |
|||||||||||||||||||||||
First half 2024 |
First half 2023 |
|||||||||||||||||||||||
EUR millions |
Segment total |
Joint ventures and associates eliminations |
Consolidated |
Segment total |
Joint ventures and associates eliminations |
Consolidated |
||||||||||||||||||
Operating result after tax |
608 |
25 |
633 |
686 |
(14) |
671 |
||||||||||||||||||
Tax on operating result |
(141) |
53 |
(88) |
(132) |
35 |
(97) |
||||||||||||||||||
Operating result |
750 |
(28) |
722 |
818 |
(49) |
768 |
||||||||||||||||||
Fair value items |
(312) |
1 |
(312) |
11 |
- |
11 |
||||||||||||||||||
Realized gains / (losses) on investments |
(45) |
(5) |
(50) |
(95) |
(3) |
(99) |
||||||||||||||||||
Net impairments |
(72) |
4 |
(68) |
(96) |
- |
(96) |
||||||||||||||||||
Non-operating items |
(430) |
- |
(430) |
(180) |
(3) |
(183) |
||||||||||||||||||
Other income / (charges) |
(403) |
(24) |
(427) |
(870) |
17 |
(852) |
||||||||||||||||||
Result before tax |
(83) |
(53) |
(136) |
(232) |
(35) |
(267) |
||||||||||||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in income before tax |
53 |
(53) |
- |
35 |
(35) |
- |
||||||||||||||||||
Income tax (expense) / benefit |
18 |
53 |
70 |
33 |
35 |
69 |
||||||||||||||||||
Of which income tax from certain proportionately consolidated joint ventures and associates included in income before tax |
(53) |
53 |
- |
(35) |
35 |
- |
||||||||||||||||||
Net result |
(65) |
- |
(65) |
(199) |
- |
(199) |
Segment information |
unaudited |
|||||||||||||||||||||||
Second half 2023 |
||||||||||||||||||||||||
EUR millions |
Segment total |
Joint ventures and associates eliminations |
Consolidated |
|||||||||||||||||||||
Operating result after tax |
567 |
126 |
693 |
|||||||||||||||||||||
Tax on operating result |
(114) |
58 |
(56) |
|||||||||||||||||||||
Operating result |
681 |
68 |
749 |
|||||||||||||||||||||
Fair value items |
65 |
9 |
73 |
|||||||||||||||||||||
Realized gains / (losses) on investments |
(564) |
(27) |
(591) |
|||||||||||||||||||||
Net impairments |
4 |
2 |
6 |
|||||||||||||||||||||
Non-operating items |
(495) |
(16) |
(511) |
|||||||||||||||||||||
Other income / (charges) |
(270) |
(108) |
(378) |
|||||||||||||||||||||
Result before tax |
(85) |
(55) |
(140) |
|||||||||||||||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in income before tax |
55 |
(55) |
- |
|||||||||||||||||||||
Income tax (expense) / benefit |
85 |
56 |
140 |
|||||||||||||||||||||
Of which income tax from certain proportionately consolidated joint ventures and associates included in income before tax |
(55) |
55 |
- |
|||||||||||||||||||||
Net result |
- |
- |
- |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 83 |
2) | New life sales is defined as new recurring premiums plus 1/10 of single premiums. |
3) | Return on equity is a ratio calculated by dividing the operating result after cost of leverage by the average shareholders’ equity excluding the revaluation reserve. |
4) | Included in Other income/(charges) are income/(charges) made to policyholders with respect to income tax in the United Kingdom. |
5) | Reconciliation of the non-IFRS measure addressable expenses to operating expenses, the most directly comparable IFRS measure. |
unaudited |
||||||||||||
EUR millions |
1H 2024 | 1H 2023 | % | |||||||||
Insurance related employee expenses |
306 | 289 | 6 |
|||||||||
Non insurance related employee expenses |
581 | 536 | 8 |
|||||||||
Insurance related administrative expenses |
245 | 289 | (15 |
) | ||||||||
Non insurance related administrative expenses |
376 | 394 | (5 |
) | ||||||||
Operating expenses for IFRS reporting |
1,509 |
1,508 |
- |
|||||||||
Discontinued operations - intercompany elimination |
- | (12 | ) | n.m. |
||||||||
Operating expenses related to joint ventures and associates |
96 | 144 | (33 |
) | ||||||||
Operating expenses in result of operations |
1,605 |
1,641 |
(2 |
) | ||||||||
Operating expenses related to joint ventures and associates |
(96 | ) | (144 | ) | 33 |
|||||||
Amounts attributed to insurance acquisition cashflows |
(25 | ) | (26 | ) | 2 |
|||||||
Restructuring expenses |
(104 | ) | (135 | ) | 23 |
|||||||
Operational improvement plan expenses |
(79 | ) | (108 | ) | 27 |
|||||||
Acquisition and disposals |
(1 | ) | (8 | ) | 88 |
|||||||
Netting of expenses / income |
(3 | ) | - | n.m. |
||||||||
FX effect constant currency |
- | 5 | n.m. |
|||||||||
Addressable expenses |
1,297 |
1,226 |
6 |
6) | New life sales and net deposits / (outflows) data include results from Aegon’s joint ventures and Aegon’s associates consolidated on a proportionate basis. |
7) | Aegon’s group solvency ratio and surplus under the Bermuda solvency framework is broadly in line with that under the Solvency II framework during a transition period until the end of 2027. The method to translate Transamerica’s capital position into the group solvency position is also similar to the methodology previously applied under Solvency II. Aegon’s UK insurance subsidiaries have been included in the Aegon’s Solvency calculation in accordance with UK Solvency II standards, including Aegon UK’s approved Partial Internal Model. After the transition period, Aegon will fully adopt the Bermudian solvency framework. The Group solvency ratio is calculated as the ratio between the Eligible Own Funds and the Solvency Capital Requirement (SCR). The Eligible Own Funds equal to the Available Own Funds after applying any Own Funds eligibility restrictions. |
8) | The Group solvency ratio is not final until filed with the regulator. The Group solvency capital calculation is subject to supervisory review on an ongoing basis. |
9) | The numbers in this release are unaudited. |
Unaudited | Aegon Ltd. Form 6-K for the six months ended June 30, 2024 | 84 |