Company: AEGOF
Filing Date: 2025-05-16
Form Type: 6-K
Source: 0001193125-25-121236
Chunk: 73

Company: AEGON LTD.
Filing Date: 2025-05-16
Form: 6-K
Chunk 73
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 invested in accordance with the Company’s internal risk management policies. Aegon believes that its Cash Capital at Holding, backed by its external funding programs and facilities, is ample for the Company’s present requirements. Aegon maintains a liquidity policy that requires all business units to project and assess their sources and uses of liquidity over a two-yearperiod under normal and severe business and market scenarios. This policy ensures that liquidity is measured and managed consistently across the Company, and that liquidity stress management plans are in place. Aegon’s operating units are engaged in life insurance and pensions business, which are long-term activities with relatively illiquid liabilities and generally matching assets. Liquidity consists of liquid assets held in investment portfolios, in addition to inflows generated by maturing assets, coupons and premium payments, and customer deposits. Leverage Aegon uses leverage to lower the cost of capital that supports businesses in the Company, thereby contributing to a more effective and efficient use of capital. In managing the use of leverage throughout the Company, Aegon has implemented a Leverage Use Framework as part of its broader ERM framework. Financial leverage Aegon defines gross financial leverage as debt or debt-like funding issued for general corporate purposes and for capitalizing Aegon’s business units. Gross financial leverage includes hybrid instruments, and subordinated and senior debt. The redemption of a EUR 700 million subordinated bond that matured in April 2024 was refinanced by a USD 760 million senior bond during the same month. Gross financial leverage increased from EUR 5.1 billion in 2023 to EUR 5.2 billion in 2024. This increase was driven by the strengthening of the US dollar against the euro. The following are metrics that Aegon assesses in managing leverage:

| • |     | Gross financial leverage ratio; |

| • |     | Fixed charge coverage; |

| • |     | Various rating agency leverage metrics; and |

| • |     | Other metrics, including gross financial leverage divided by operating capital generation1 |

Aegon’s gross financial leverage ratio is calculated by dividing gross financial leverage by total capitalization. Aegon’s total capitalization consists of the following components:

| • |     | Shareholders’ equity based on IFRS as adopted by the EU; |

| • |     | Non-controlling interests and shares related to long-term incentive plans that have not yet vested; |

| • |     | Contractual service margin, excluding joint-ventures and associates, net of tax;