Company: AEGOF
Filing Date: 2025-05-16
Form Type: 6-K
Source: 0001193125-25-121236
Chunk: 53

Company: AEGON LTD.
Filing Date: 2025-05-16
Form: 6-K
Chunk 53
---
 |  450 |     |  450 |
| BB                             |     |  250 |     |  250 |
| B                              |     |  125 |     |  125 |
| CCC-C                          |     |   50 |     |   50 |
| D                              |     |   50 |     |   50 |
| Not rated                      |     |   50 |     |   50 |

Equity market risk Equity risk is generally well-diversified, with exposure coming through indirect exposure to policyholder account values and exposure to major market indices through derivatives instruments used for hedging. Any aggregate exposure to specific corporations is managed through the CNLP.

| 39 |     | | Aegon Financial Condition Report 2024 |

| Risk profile  Material risk concentrations |

Underwriting risk Besides the risk indicator levels as measured by gross ERC at group and business unit level, it’s a common practice to address ‘concentration’ of risk on insured lives or, for property and casualty business, on insured objects, using a risk limit per single life (or joint lives) and per insured object. The exposures on a few lives (or objects) with a much higher risk than the average in the portfolio can create unwanted volatility in the results. Aegon limits such exposures by setting retention limits, reducing the impact of process risk and also increasing the stability of the underwriting results. These retention limits are typically chosen in such a way that the remaining exposure is acceptable, relative to the size of the earnings and the size of the balance sheet of the Company. Risk mitigation and managing compliance with the retention limits can be achieved through reinsurance (external or internal), the underwriting process or through the product design. Liquidity risk Liquidity risk originating directly from insurance business is well-diversified with no material concentrations of risk. Liquidity required to fund collateral calls depends on various market factors and some of these could be considered material risk concentrations. The main factor is the extensive use of interest rate swaps to hedge against falling interest rates. If interest rates were to rise rapidly in US and UK economies, as they did throughout 2022 and 2023, then Aegon’s main business units would have to increase liquidity requirements. On a regular basis, Aegon reviews medium-term cash-flow projections for business units and legal entities in order to identify and manage liquidity requirements over the planning horizon. Liquidity risk originating directly from insurance business is well-diversified with no