Aegon Earnings: Another Loss; Maintaining Our Fair Value Estimate

Aegon has reported a loss of EUR 65 million for the first half of 2024, with a good single-digit rise in operating profit, hit by the unfavorable US mortality experience. In terms of its individual business unit reporting metrics, the business looks a little light on both its number of World Financial Group agents and also individual life sales, while advisor platform net outflows remain elevated. While Aegon has announced a EUR 0.16 per-share interim dividend, a 16.5% rise on the interim dividend it paid last year, operating capital generated after holding and other activities has fallen by 7% to EUR 458 million. That is mainly the result of a drop in capital generated in the Americas because of this unfavorable US mortality claims experience within the run-off businesses. It’s not all bad news because Aegon is running off financial assets to reduce capital employed and market risk. That should, or could, improve the earnings profile and stability of the business. However, the operating profit moving to a net loss is another in a long line of poor Aegon reporting periods. We maintain our fair value estimate and no moat rating.