Company: AEGOF
Filing Date: 2025-02-20
Form Type: 6-K
Source: 0001193125-25-030100
Chunk: 11

Company: AEGON LTD.
Filing Date: 2025-02-20
Form: 6-K
Chunk 11
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 |         |     63 |   |     |           |  (84 | %) |
| End of period                          |     |       |     |         | 1,725 |   |     |         |  2,387 |   |     |           |  (28 | %) |

14

Maintaining a strong balance sheet is a prerequisite for Aegon to achieve its financial and strategic objectives. It allows the company to build leading, advantaged businesses that create value for its customers, shareholders, and other stakeholders. Aegon has a clear capital management framework in place that informs its capital deployment decisions. This framework is based on maintaining an adequate capitalization of its business units, Cash Capital at Holding, and gross financial leverage. Capital ratios US RBC ratio The estimated RBC ratio in the US decreased from 446% on June 30, 2024, to 443% on December 31, 2024, remaining above the operating level of 400%. The decrease was driven by several factors. First, the termination of a portfolio of universal life policies that were previously purchased from institutional owners had a one-timeunfavorable impact on the RBC ratio of 8%-points,taking into account the repayment of part of the equity funding used to acquire these policies. Second, one-timeitems and management actions reduced the RBC ratio by 8%-pointsin the reporting period. This mainly arose from restructuring expenses from the implementation of the new Individual Life operating model and a contribution to the own employee pension plan. Market movements had an 8%-pointspositive impact on the RBC ratio in the second half of 2024. Operating capital generation from operating entities applying the RBC framework had a positive contribution of 21%-pointsto the RBC ratio, which was partly offset by remittances to the Holding, which had a 16%-points impact. At the end of 2024, the US RBC ratio has become more sensitive to market movements driven by flooring of reserves on Variable Annuities and inadmissibility of deferred tax assets. UK SE solvency II ratio The estimated UK solvency II ratio for Scottish Equitable plc decreased from 189% on June 30, 2024, to 186% on December 31, 2024, and remained above the operating level of 150%. The positive impacts from operating capital generation and the annual assumption updates were more than offset by the negative impacts from remittances, a previously announced model