Q3 2025 Aegon Ltd Trading Statement 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 : Firstly, I wanted to ask about your long-term care book. Some of your peers have had to address reserves recently to reflect higher incidence levels. So I was hoping you could remind us what your assumptions are for incidents versus before COVID and also the mortality and morbidity assumptions you have within that portfolio? And then I'll ask my second question right away on cash. So your cash conversion of earnings in the US looks like it will still be around 70% for this year. Do you see this level as adequate and what's holding you back from increasing it already?

Question: Iain Pearce - Exane SA - Analyst : My first question was just on the strategic assets in the US. So when I look at the year on year sort of Q3 versus Q3 last year, the eligible own funds generation seems to be down across all three of the units. So just wondering if you can elaborate on what's driving that lower owned terms generation when we just look at that line rather than sort of OCG as a whole. And then the second one was just on the reduction in capital employed in the financial assets. Obviously, that's come down quite nicely in Q3. Just wondering if you could talk about what the driver of that reduction is and if that sort of run rate is a good run rate or is there something special in Q3 that drives that figures.

Question: Iain Pearce - Exane SA - Analyst : Yeah. So if I look at the first slide of the appendix, so slide 13, year on year, if you look at the earnings on in-force for the Distribution, Savings and Investment, and Protection Solutions business that those lines are all down Q3 '25 versus Q2 '24. I'm just wondering what's driving that, because OPG is up, but it seems to be predominantly by pace of capital and lower business rate (technical difficulty)

Question: Nasib Ahmed - UBS AG - Analyst : So first one, I guess, for Duncan, stranded costs in the financial assets. Can you give us kind of some sense of what kind of costs you're allocating to the financial assets? And the reason I ask is because I think back in the day when you were looking at the variability book, that was one of the points that you needed to take into account in terms of loading the business. And then second one, I guess, a follow-up to David's initial question on payout ratio. I think in the 2020 CMD pack, you had a 75% payout ratio for the group. I know you had the Netherlands in there and then the medium-term target to improve that from 75% to a higher level. Is that kind of still what we should be expecting in terms of payout to OCG?

Question: David Barma - Bofa Merrill Lynch Asset Holdings Inc - Analyst : On variable annuities, Duncan, you previously mentioned the possibility of fixing the flooring via internal reinsurance through a captive, I think. Is this still on the table? Or are you okay keeping that non-economic sensitivity in the VA block? And then secondly, on the net flows into the US mid-market retirement plans, they've been very, very volatile in the last years, but only slightly positive on average. Lard, would you be able to give us some color on the competitive dynamics there and what the more elevated withdrawal rates might be driven by? And then lastly, coming back to mortality and morbidity and widening the question from just the LTC block to the whole US business. So if I got this right, I think 8 of the last 10 quarters were more favorable than expected. So could you talk about the dynamics there? And at what point you'd recognize this as a structural trend versus where you're reserving and expectations are?

Question: Jason Kalamboussis - ING Groep NV - Analyst : Yes. The first one is for Lard. If you can give us the same comments that you gave on the US, that means how you see on the UK, the developments this year or back end of last year and this year compared to your plans? Are you satisfied with it? And the second question is on the US RBC ratio. In fourth quarter, clearly, it's more likely to be lower. So I would be interested to understand if it is a level you are happy with or if we should be looking at some stage for some injection from the holding into the US. And also just mentioning that, I mean I don't follow the US life insurance industry, but my impression was that a lot of your peers like to be in the 430%, 440% level. So again, if you can comment on that, it would be much appreciated.

Question: Michele Ballatore - Keefe Bruyette & Woods Inc - Analyst : Yes. Sorry if I missed this, but the reduction of around $200 million in the capital employed in the financial asset versus the second quarter. Is it -- I mean, is there any particular action taken there? So if you can maybe give me some details about this? And also on the target of reaching EUR2.2 billion, should we expect more details around this particle of factors at the next Capital Markets Day?

Question: David Barma - Bofa Merrill Lynch Asset Holdings Inc - Analyst : All right. Me again. And just one last small follow-up on the capital employed again. There's a lot of different moving parts and tracking this capital employed figure between what you're doing, the equity performance, the runoff of the book, et cetera. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2025 / 8:00AM, AEGN.AS - Q3 2025 Aegon Ltd Trading Statement Call So Duncan, could you give us a sense of how you're doing compared with the ambition for a $700 million reduction coming from management actions. So the management action part specifically of the reduction in the capital employed, please?

Question: Michael Huttner - Joh Berenberg Gossler & Co KG - Analyst : I mean sorry, I joined the call late, so probably answered, but just in case. I have two. The one is on the cash and the other one is on mortality. On cash, can you give us a feel for the walk forward from the EUR1.8 billion in change in nine months and EUR1 billion target you've kind of set for 2026. What could be the potential moving parts? And then the other one is on the mortality exposure. So for memory, I think you reduced maybe 30%, even 40% the institutionally owned [lifes], and that's gone now. So can you give us a feel for what the current mortality exposure is at the group level, and how you think of it as developing? I noticed mortality was EUR12 million better in Q3 which, to me, feels like a low number, I would have expected around 30%. But maybe there's some moving parts I'm not aware of.

Question: Michael Huttner - Joh Berenberg Gossler & Co KG - Analyst : And how much was the institutional purchase so far? And is it all now gone clear through the capital? Because I think there's an element where you had to cancel the stuff before the -- and you have to wait for the reinsurers to agree.

Question: Michael Huttner - Joh Berenberg Gossler & Co KG - Analyst : Brilliant. And just the last figure, how much have you bought back on the institutional to date?