Company: AEGOF
Filing Date: 2025-12-10
Form Type: 6-K
Source: 0001171843-25-007849
Chunk: 2

Company: AEGON LTD.
Filing Date: 2025-12-10
Form: 6-K
Chunk 2
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350 million to be incurred between 2H 2025
and 1H 2028.

Reinsurance of a portfolio of SGUL policies with a net face value of USD 10 billion
Consistent with its strategy to reduce
capital employed by Financial Assets, which are legacy blocks, Aegon has decided to reinsure a block of Secondary Guarantee Universal
Life (SGUL) contracts. The transaction covers 30% of the face value of Transamerica’s SGUL business, bringing the total value addressed
to 80% of the total SGUL portfolio in combination with previously executed management actions. It decreases the total capital employed
by USD 0.3 billion to USD 2.7 billion, well ahead of the targeted reduction in 2025.

The transaction occurs at a price consistent with Aegon’s best estimate assumptions, resulting in a minimal impact on the company’s
IFRS valuation equity and operating profit, while removing potential variances and risks associated with mortality and policyholder behavior
in the future.

The transaction will unwind existing financing structures and trigger tax constraints along with realized losses, impacting the RBC
ratio. It comes together with a USD 800 million investment into Transamerica which neutralizes the impact on the RBC ratio and will enable
additional operating capital generation and remittances of USD 75 million per annum, which compares favorably to the alternatives.

Maximizing the value of Aegon’s business portfolio
In the US, the underlying market trends favor Transamerica’s
business: people are living longer, the protection gap is widening, and there is significant opportunity for Aegon to support American
families in preparing for retirement. To underpin Aegon’s growth plans, Transamerica aims to:

This plan aims to enable Transamerica to grow its operating result and its remittances by around 5% per annum over the course of the
next two years from a 2025 run-rate of USD 1.4 to 1.6 billion and USD 675 million respectively. This includes the impact of the SGUL reinsurance
transaction and related investment into Transamerica.

In addition, Aegon outlined its plans for its asset management business, which include:

These plans aim to increase Aegon AM’s operating result to more than EUR 200 million in 2027, from a 2025 run-rate of EUR 170–200
million, and to increase its remittances of approximately EUR 80