Company: AEGOF
Filing Date: 2025-05-16
Form Type: 6-K
Source: 0001193125-25-121236
Chunk: 41

Company: AEGON LTD.
Filing Date: 2025-05-16
Form: 6-K
Chunk 41
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, such as disability insurance, both the increased frequency and severity of claims are significant sources of exposure. Policyholder behavior Policyholder behavior risk arises from economic losses due to policyholder behavior deviating from expectation. Insurance contracts typically provide policyholders with a variety of options that they may or may not exercise. Policyholder behavior risk is the risk that actual policyholder behavior varies from the assumptions built into the reserve calculations. This includes assumptions about lapses, withdrawals, premium payment levels, allocation of funds, and the utilization of possible options in the products. Property & casualty risk Property & Casualty risk (P&C) covers the risk that the parameters used in setting reserves or premiums for property and casualty business are inaccurate. Due to the different nature of setting reserves for property & casualty business it has its own risk type. In practice, Aegon has a relatively small direct exposure to Property & Casualty risk and there is an indirect exposure to P&C risk through its 29.95% stake in a.s.r. Examples of Property & Casualty risks within Aegon are:

| • |     | Motor, which includes automobile property damage and third-party liability coverage; |

| • |     | Commercial property: commercial structures and contents; |

| • |     | Marine, aviation and transport; |

| • |     | Liability: public/third-party liability; and |

| • |     | Homeowners: buildings and contents coverage. |

Expense risk Expense risk is the risk that the expenses arising from servicing (re)insurance contracts may develop differently than expected. There are various types of expense risk:

| • |     | Expense inflation risk: this is the risk that expenses inflate at a higher rate than that assumed in the calculation of the technical provisions. This does not cover the risk of general price inflation increases; and |

| • |     | Expense level risk: this is the risk that there will be unexpected changes in maintenance expenses for in-force business (assuming that the volumes of business are unchanged from    
 best estimate assumptions). This risk therefore corresponds to an increase in the total expenses spread among the same number of policies – meaning the per policy expenses increase. |

Most expenses Aegon has within its businesses will be subject to expense risk if not contractually defined. These types of expenses include for example: salaries, office space, software licenses and fees to intermediaries.

| 32 |     | | Aegon Financial Condition Report 2024 |

| Risk profile  Material risks |

Underwriting risk assessment Aegon