Company: AEGOF
Filing Date: 2025-05-16
Form Type: 6-K
Source: 0001193125-25-121236
Chunk: 79

Company: AEGON LTD.
Filing Date: 2025-05-16
Form: 6-K
Chunk 79
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 than the standard formula stress as the Solvency PICM stress covers expense level, trend and volatility stress. This leads to a higher SCR before diversification. Operational risk For Aegon UK, the Solvency PICM for operational risk differs from the Standard Formula as follows:

| • |     | The Solvency PICM is based on the input of subject matter experts where workshops are used to generate possible scenarios supplemented by experience data. The data is then fitted into a stochastic model, while the 
 standard formula is based on technical provisions, premiums and expenses; and                                                                                                                                         |

| • |     | The Solvency PICM allows for diversification of operational risk with other risk types as opposed to the standard formula which does not allow for diversification of operational risk at all. |

| 60 |     | | Aegon Financial Condition Report 2024 |

| Capital management  Approved internal capital model used to derive the SCR |

Diversification Diversification between the internal model and the standard formula components of the Solvency PICM are calculated using Integration Technique 3 (IT3). This EIOPA prescribed integration technique describes how an implied linear correlation coefficient between the internal model and standard formula components is calculated. This correlation coefficient is subsequently used to calculate the total Solvency PICM SCR using a square root formula. The Standard Formula makes use of correlation matrices to calculate the diversifications by risk module and on a total level. E.3.6 A description of the nature and suitability of the data used in the Group SCR model Aegon has implemented a group-wide Data Quality policy for the Solvency reporting processes, including a required data directory and a description of the criteria regarding data completeness, accuracy and appropriateness respectively. Data used in the internal model originates from internal as well as external sources, for example:

| • |     | Policy data detailing characteristics and coverage of individual insurance policies; |

| • |     | Data specifying the portfolio of assets, e.g. type of asset, amount, and maturity date; and |

| • |     | Data from external sources such as population mortality tables and prices of traded securities. |

The internal model design aims to make optimal use of all available data in the stages of model design and execution. An assessment of the appropriateness of data usage forms part of the annual overarching model validation process. E.3.7 Any other material information There is no other material information to report.

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