Company: AEGOF
Filing Date: 2025-02-20
Form Type: 6-K
Source: 0001193125-25-030100
Chunk: 7

Company: AEGON LTD.
Filing Date: 2025-02-20
Form: 6-K
Chunk 7
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 remaining universal life policies purchased from institutional owners will be terminated over time. Over time, the capital impacts are expected to be offset by avoiding a drag on future operating capital generation from these policies, as previously guided for at Aegon’s 2023 CMD. 6

Long-Term Care Transamerica is actively managing its Long-Term Care business, primarily through premium rate increase programs. The company continues to work with state regulators to obtain approvals for pending and future actuarially justified rate increases. At its 2023 CMD, Aegon announced its intention to achieve approvals for an additional net present value of USD 700 million of premium rate increases. The total value of premium rate increases approved by state regulators since the beginning of 2023 amounts to USD 571 million, which is 82% of the target. Claims experience continues to track well with assumptions, with the actual-to-expectedclaim ratio – which includes reserve changes – being mildly unfavorable at 101% in the second half of 2024. Variable Annuities The portfolio of Variable Annuities with significant interest sensitive riders is a legacy block that will run off over time, and that has been de-riskedby dynamically hedging the market risk associated with guaranteed benefit riders, including the statutory lapse and mortality margins. The hedge program was 99% effective in the second half of 2024, continuing its strong track record of managing the financial market risks embedded in the guarantees. Net outflows in Variable Annuities amounted to USD 3.1 billion in the second half of 2024, compared with net outflows of USD 2.6 billion in the same period last year, in line with expectations. Gross deposits in Variable Annuities increased to USD 0.9 billion from USD 0.6 billion in the prior year period, mainly from growing sales in a variable annuity product with limited guarantees. This was more than offset by higher withdrawals and surrenders. Fixed Annuities The Fixed Annuities portfolio is a Financial Asset that will run off relatively quickly over time. Net outflows in the Fixed Annuities book amounted to USD 0.5 billion in the reporting period, compared with net outflows of USD 0.6 billion in the same period of last year, driven by surrenders and withdrawals. In addition, a portfolio of Single Premium Guaranteed Annuities (SPGAs) is managed as a Financial Asset and had net outflows of USD 0.1 billion in the second half of