Half Year 2024 Aegon Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: David Barma - BofA Securities - Analyst : Good morning. Thank you for taking my questions. The first one is on the [back book] management. So you've made several assumption changes in the US during the period. To what extent may these make it easier for you to do it third party in-force management action in the future? And just linked to that, can we expect you to look at more in-force deals and universal life or is this this part of the book. We're in a good place after the previous reinsurance deals and the buyout. That's my first question. Thank you.

Question: David Barma - BofA Securities - Analyst : Thank you. And then secondly, on cash. So I mean, you keep adjusting assumptions and strengthening the quality of the capital in the US, the Group level, more generally, but solvency and cash keeps going up. So what do we need to see for you to be comfortable to reduce the holding cash towards the midpoint of the target range, which you said you would over time. Thank you.

Question: David Barma - BofA Securities - Analyst : Thank you.

Question: Steven Haywood - HSBC Holdings PLC - Analyst : Good morning. Thank you very much. And there is obviously a lot of items to consider here, one-offs and below the line. And the first question from me, starting on the and IFRS operating -- below the operating line. And can you give us some more color on both the alternative investments, portfolio performance and on real estate and land and the negative valuation here? Is this a trend you're concerned about? And also on the impairments side of things with bond rating downgrades and mortgages and model changes here. Is there anything maybe concerning here? I'm used to give a chart out about impairments and showing the average yearly impairment basis points over the last 20 years or so. Can you give us an update on that as well? Sorry for not very long. First question, but if you could give some more color, he'll be very helpful.

Question: Steven Haywood - HSBC Holdings PLC - Analyst : No, thank you that was great.

Question: Steven Haywood - HSBC Holdings PLC - Analyst : That has been going further than I thought and lead me into my second question, which was actually on the operating profit guidance uplift. Does the changes you've made here? Have any impacts on the operating capital generation as well? I know obviously two different accounting regimes, but is there any uplift to the guidance for your operating capital generation because of what you're seeing in the mortality and underlying trends here?

Question: Steven Haywood - HSBC Holdings PLC - Analyst : That's great. Thank you very much.

Question: Michael Huttner - Joh Berenberg Gossler & Co KG - Analyst : Hi, thank you. Congratulations, I think that lovely results and build on that, and thank you. And I hope Aegon will keep you busy in some way. Anyway, on the results, I'd give you my two questions. I know I'm only allowed one at a time by giving birth because it may be related? And can you talk about the large live miss in terms of mortality? And also in the context of your investment in reducing the institutionally owned outstanding. I know it sounds like noise, but it sounds like recurring noise, and that's why I'm a little bit unsure how to kind of gated. Any insight you have would be would you hugely? And then the second one, it appears to be almost like a structural offset from long-term care. So every time you have a negative mortality, long-term care seems to pop up and say we will give you some reserve releases. Is that how I should think about it given that I know that there's slightly different cohorts, but the underlying principles are roughly offsetting that would be my two questions. Thank you.

Question: Michael Huttner - Joh Berenberg Gossler & Co KG - Analyst : Thank you.

Question: Farquhar Murray - Autonomous Research US LP - Analyst : Good morning all, and obviously best wishes for your assignment and many folks that have helped over the years. If I turned my questions two, if I may. The operating result guidance of [800 million to 900 million] per half and two elements that. Could you explain the walk from, say, today's [750 million to 800 million to 900 million], it looks more than just the $50 million step. And I wonder if it's the commercial performance on top and perhaps related, how quickly do you think we can grade into that [800 million to 900 million] ? I think previously you suggested maybe a bit of a graduated increase into a run rate. And then on the assumption model updates, the EUR373 million, please, can you just decompose that between the term. And the UL components in particular is that it's focused on a particular cohort of policies that again akin to the experience variances. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 22, 2024 / 7:00AM, AEGN.AS - Half Year 2024 Aegon Ltd Earnings Call

Question: Farquhar Murray - Autonomous Research US LP - Analyst : And this is specific to a particular cohort, again, a high value, high age.

Question: Farquhar Murray - Autonomous Research US LP - Analyst : Okay. Thanks, Matt.

Question: Nasib Ahmed - UBS Investment Bank - Analyst : Good morning. Thanks for taking my questions. Firstly, on the financial assets, you've got 3.5 billion of locked in capital in there. How much of that reduction since '22, has been delivered by your actions versus markets because I think a big proportion of the reduction of the market. And then you're targeting 1.2 billion to management actions. I guess any market movements will come on top of that. And then kind of sub-question is the 1.2 billion more back-end loaded towards 2027 or dual chip away at this as and when you get attractive pricing in the markets. So that question, number one. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 22, 2024 / 7:00AM, AEGN.AS - Half Year 2024 Aegon Ltd Earnings Call

Question: Nasib Ahmed - UBS Investment Bank - Analyst : Perfect. Thank you. And the second question, it's a quick one on US GAAP reporting. I think you've indicated in the past that you will look into it. Now that IFRS 17 is embedded any data on that.

Question: Nasib Ahmed - UBS Investment Bank - Analyst : Okay, Thank you, Matt.

Question: Jason Kalamboussis - ING Groep N.V. - Analyst : Yes, hi. First of all I wanted to thank a Matt, and wish him indeed very happy next phase of his life without the Analysts ask best during Q1 results final details, and of course, I welcome to Duncan. Congratulations in case you knew role where I hope that you will do an excellent job like he did in the past, already taken. Moving on, I have just a couple of quick questions. On the OCG guidance. Mike, you said that you normally we should assume zero going forward and if anything will have a small drag from the change in assumptions, but effectively, you're more likely to see positive as you had in the past, you were seeing, for example, in the US mobility, you'll have some -- many years of positive experience. So is it fair to say that at the end of the day there is going to be somewhere in that list is just that you know, you assume it had zero, you guys, as you know, in OCG with zero in mind. But effectively we are more likely see if anything, positive experiences. So I would like your thoughts on that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 22, 2024 / 7:00AM, AEGN.AS - Half Year 2024 Aegon Ltd Earnings Call And also OCG in the US on the financial assets, can you help on what you would expect in the second half of the year. And then a couple of small things in Spain. I assume that, you know, given that now interest rates are going down, we should see a bounce in the second half. So this is maybe more of a statement, but just looking to confirm that. And on the cash, as you said, probably, you know, the next update for share buybacks is the full year, my calculations show that you will be NOK1.7 billion at year end. So I just wanted to make clear that you are not we're not going to have any surprises with the Q3 trading update and you are looking at the next date of February '25 for any capital updates. Thank you very much.

Question: Jason Kalamboussis - ING Groep N.V. - Analyst : Thank you very much.

Question: Farooq Hanif - JPMorgan Chase & Co - Analyst : Thank you very much, and thanks, Matt. Question one, can you please talk about in on long-term care, the drive of the really high actual to expected. Obviously, we would probably expect higher old-age mortality to be positive flat. And related to that, when are you expecting the next our approval for price increases. And if you do get those price increases, am I right in thinking that in the CSM, you've already taken that into account just not really going to uplift. That's question area number one and I'll wait four your answer. I give you my second one.

Question: Farooq Hanif - JPMorgan Chase & Co - Analyst : Thank you. And my second question, I suspect you might not be able to answer fully. Yes, but your RBC ratio, it's clearly well above target levels, and it feels to me like you're much more positive now on experience and assumptions. But you've given us this impression that as you release capital from financial assets, you'll reinvest in strategic, but it feels to me that bounce is net positive. So what point as a group as an organization, do you think you'll decide to maybe increase remittances from the US? Thanks.

Question: Farooq Hanif - JPMorgan Chase & Co - Analyst : Thank you so much.