Company: AEGOF
Filing Date: 2025-05-16
Form Type: 6-K
Source: 0001193125-25-121236
Chunk: 60

Company: AEGON LTD.
Filing Date: 2025-05-16
Form: 6-K
Chunk 60
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ial Function Holder. The table below gives an overview on the significant non-economicassumptions:

| Unit                |     | Business                               |     | Significant Non-Economic Assumptions         |
| Aegon UK            |     | All business                           |     | Lapses and maintenance expenses              |
| Aegon International |     | Spain (Santander JVs and Aegon España) |     | Lapses, all businesses: maintenance expenses |

Best estimate actuarial assumptions (i.e. mortality, longevity and lapse) and maintenance expenses assumptions are developed through periodic experience studies. The frequency of these studies is determined by the relative significance of the assumption in relation to actuarial calculations, its volatility, and the amount of new experience available. Mortality assumptions are generally developed based on a blend of company experience and industry wide studies, taking into consideration product characteristics, own risk selection criteria, target market and past experience. Longevity assumptions are set for annuity business where benefit payments are a function of survivorship status. An important feature of the annuitant longevity as well as the mortality basis is the inclusion of a long-term rate of improvement of mortality.

| 46 |     | | Aegon Financial Condition Report 2024 |

| Solvency valuation  The valuation basis, assumptions and methods |

Consistent with last year, the UK continues to exclude experience data for 2020 and 2021 from the experience analysis periods used in setting most of the assumptions for use at year-end2024 on the basis that it may not be reflective of future long-term experience due to the distorting effects of Covid-19on mortality and morbidity, and on policyholder behaviour. Policyholder behavior (e.g. lapse, surrender, withdrawal, annuitization, and premium persistency) assumptions are set where policyholders have options to withdraw funds, cancel their contracts, cease or adjust premium amounts, or elect embedded options. Policyholder behavior assumptions depend on product features, policy duration and external circumstances such as the interest rate environment and competitors. Reliable own experience, as well as available industry wide data, are used in establishing assumptions. Maintenance expense assumptions reflect the cost of administering policyholder contracts and are derived from the cost analysis that forms a key part of each entity’s cost management activity. Broadly speaking, cost loadings are derived by identifying the costs that are expected to be incurred in respect of administering policyholder business, and dividing this by the number of relevant contracts at a contract type level, or