Company: AEGOF
Filing Date: 2025-02-20
Form Type: 6-K
Source: 0001193125-25-030100
Chunk: 17

Company: AEGON LTD.
Filing Date: 2025-02-20
Form: 6-K
Chunk 17
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 decreased by USD 37 million to USD 38 million in the second half-year of 2024, compared with USD 75 million in the second half of 2023. The decrease was mostly driven by a more unfavorable experience from onerous contracts, which amounted to a USD 147 million unfavorable impact in the second half of 2024 compared with USD 56 million unfavorable in the prior year period. In the second half of 2024, around a third of the impact was driven by unfavorable reserve changes due to premium variances in the Universal Life book. Another third of the impact resulted from unfavorable lapse behavior in the reinsured Universal Life portfolio of TLB following pronounced interest rate movements in Asia, but was offset in the Holdings segment, as a consequence of the internal reinsurance transaction. The remainder related largely to the reclassification of interest accretion for onerous Variable Annuities contracts from fair value items to operating result. This had an unfavorable, recurring impact of USD 35 million in this half-year period with an offset in fair value items leading to no impact on the net result. Furthermore, the net investment result decreased from a gain of USD 28 million in the second half of 2023 to a loss of USD 32 million in the current reporting period. The decrease was partly driven by a USD 28 million one-timegain in the second half-year of 2023 related to a methodology update in Variable and Fixed Annuities. In addition, general account asset levels decreased from the run-offof the book and, as a result, the associated investment income decrease was partly offset by lower accretion of interest on liabilities. The decrease of the operating result was partially offset by less unfavorable experience variances in the reporting period. Mortality claims experience was USD 20 million favorable to expectations in the second half-year of 2024, while morbidity claims experience was broadly in line. The run-offof the book further reduced the release of CSM by USD 32 million compared with the second half of 2023, to USD 250 million in the reporting period. United Kingdom The operating result from the UK for the second half of 2024 was EUR 104 million, or GBP 87 million in local currency, compared with GBP 89 million in the prior year period. The operating result benefited from business growth and a higher CSM release. Favorable markets led to increased revenues but this was more than offset by higher hedging costs and reduced interest income on own cash. Furthermore, losses