Aegon Ltd Q2 2025 Earnings Call Transcript

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

Question: David Barma - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Good morning. Thanks for taking my questions. To start with, can you talk about what drove the decision to cover 25% of the variable annuity based fee, please? Did you see that as the optimal balance between cost of protection? Or is it a first step and you'd like to do, do more over time? And I'll ask my second straight away because it's linked to that. The -- that combined with the measures taken on the Universal Life block will weigh on on OCG going forward, but you've reiterated the guidance. We've been in a similar situation in the past two years with mortality first and then the drag in China, both being offset by other measures. So as I'm trying to understand how reliant OCG is to the current level of equities and to what extent stronger-than-expected business growth is making you comfortable with the the OCG level that you're guiding for? If you can give a bit of color on that, please? Thank you.

Question: Michael Huttner - Joh Berenberg Gossler & Co KG - Analyst : Hi there. I wanted to say it's almost like -- sounds like goodbye, the decision to -- and I take it as a decision if you've already started doing US GAAP, it sounds to me like a decision. So first question on the US GAAP, can you -- as an indication, where will it land roughly relative to the operating profit or the OCG we've got already? And the other two, I know that it's more than two questions. The pool plan, how big it is? Because I guess it's around EUR2 billion, but I don't know. And then also the figures on the new business if I may, the economic exposure, the VA benefit, how much does it reduce the capital required?

Question: Michael Huttner - Joh Berenberg Gossler & Co KG - Analyst : And the new business strain?

Question: Farooq Hanif - JPMorgan Chase & Co - Analyst : Hi, everybody. I just want to delve a little bit into your thinking on the redomiciliation because you've told us, obviously, that you've considered this in the past or it's been on the table, particularly when you move to your regulatory domicile to Bermuda. So I mean, I get the point about it makes sense from the point of view of most of your business is obviously from the US But I just want to understand what's changed given that you -- I believe that you've probably looked at this before. So I mean, the things that come to my mind are regulators, does it also make it easier for you to execute on some of your plans in the US? Would that be a factor that, for example, in terms of being able to use US. GAAP and just being located there. I wonder if you've been willing to just talk a little bit more about this, I mean, I realize you're reviewing it all, but just some of the other factors that are important. And -- sorry, that was a very long question. Second question, how clean is your EUR845 million operating profit? Can you -- I mean you did quickly run, Duncan, run through some points, but how clean do you think it is? 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 21, 2025 / 7:00AM, AEGN.AS - Q2 2025 Aegon Ltd Earnings Call

Question: Farooq Hanif - JPMorgan Chase & Co - Analyst : So just -- I'm really sorry to jump in on taking time, but has there been any regulatory pressure to do this?

Question: Iain Pearce - Exane Bnp Paribas - Analyst : Hi, morning, everyone. Thanks for taking my questions. They're all around the redomiciliation. First, if you could just touch on what you think the main challenges will be of potentially redomiciling obviously, you flagged US GAAP, but just sort of what you think the main challenges of the move would be? And have you had any conversations with your main shareholder about the move? I mean clearly, that article of association might cause some problems for them with a redomiciliation potentially. And then the second one is just around the asset allocation opportunities of redomiciling and moving to a US regulated entity. Do you see one of the main benefits of -- and is the plan to really re-risk the asset portfolio in the US and increased private asset allocations as part of this redomiciliation? Thank you.

Question: Nasib Ahmed - UBS AG - Analyst : Morning. Thanks for taking my questions. So first one on just M&A. You've still got the financial assets. There's been a big variable annuity deal where I think the counterparty managed to get over the line on the risk, and that was one of the blockers for you guys, I think. So any thoughts on kind of third-party actions on the EUR3.3 billion locked in? And then on the provide anything that you would potentially buy? And how does the US redomicilation help with M&A on the acquisition side? Second one is on OCG versus IFRS in the US So Duncan, you raised the guide on the IFRS by EUR50 million, but I think the OCG guide stays the same. What's the difference? Why haven't you raised the OCG guide in the US? Thank you.

Question: Farquhar Murray - Bernstein Autonomous LLP - Analyst : Morning all. A couple of questions from my side, just mainly on the discussion. Obviously, it's been debated for a few years and does not seem a bit of a foregone conclusion, but I just wondered if you have a sense, therefore, on the actual life project costs of the US GAAP implementation. And then obviously getting closer to the US business makes a lot of sense, but I just wondered where that leaves your approach on the rest of the global footprint. Thanks.

Question: Benoit Petrarque - Kepler Cheuvreux SA - Analyst : Yes, good morning. So yes, the first one is actually on your -- ASR stake. What is your initial thoughts around your stake also going forward, looking at the potential relocation in the US It sounds like it becomes less core than before. And then maybe on ahead of the potential relocation, do you plan to initiate deleveraging actions and yielding holding levels. So any plans to maybe refocus more on deleveraging next year? Thank you.

Question: Benoit Petrarque - Kepler Cheuvreux SA - Analyst : Thank you.

Question: Michael Huttner - Joh Berenberg Gossler & Co KG - Analyst : Hi there. On US mortality slide 17, can you talk a little bit about the unfavorable claims experience. I remember a figure, I think it was EUR66 million in Q1. So normally, you would have 33 million because of normal seasonality and there was EUR33 million on top. I just want to get a feel it's for which way it's going versus your assumptions? And the second question is, I mean, sorry, Lard, I didn't hear the answer on tools. I did the numbers. So on the savings and investment Q2 2025, you had a EUR2 billion net inflow. It was zero in Q2 2024. And you mentioned pool plan. And I'm really sorry, I didn't hear the number on that. Thank you.

Question: Michael Huttner - Joh Berenberg Gossler & Co KG - Analyst : Brilliant. That's very helpful.