Company: AEGOF
Filing Date: 2025-05-16
Form Type: 6-K
Source: 0001193125-25-121236
Chunk: 57

Company: AEGON LTD.
Filing Date: 2025-05-16
Form: 6-K
Chunk 57
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 credit defaults     |     | ~3x long-term average  |     | 181%                                                                                                                                                                                |     | -7%                   |
| US migration           |     | 1 big letter downgrade |     | 185%                                                                                                                                                                                |     | -3%                   |
| Longevity              |     | + 5%                   |     | 184%                                                                                                                                                                                |     | -4%                   |

| 1 | Excluding impact from 29.95% stake in a.s.r. |

Equity sensitivities Aegon is exposed to equity markets, which is mainly a consequence of indirect equity exposure in the Americas. In the Americas, equity sensitivities are primarily driven by the variable annuity (VA) business, where base contract fees are charged as a percentage of underlying funds, many of which are equity-based. While guaranteed benefits are fully hedged for equity risk, the indirect equity exposure associated with the base contract fees is not. 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 the cliff effects that occur when deferred tax assets become inadmissible (“DTA cliff impact”) that Aegon takes into account per year-end2024. Interest rates sensitivities Aegon’s Group Solvency ratio is not very sensitive to movements in interest rates given the asset liability management and hedging programs that are in place. Spread sensitivities The non-governmentspread sensitivities include shocks on corporate bonds and structured instruments. Overall, Aegon is exposed to the risk of widening credit spreads, which results in lower asset valuations. Aegon as a whole has little exposure to changes in government spreads. Credit default and migration sensitivities Credit sensitivities reflect the 1-in-10impact of defaults and migrations separately. Defaults represent the annual impact of a level three times the long-term average with 1/3 in Operating Capital Generation and the remainder as a shock impact. Ratings migrations are equivalent to 10% of the general account portfolio dropping one letter grade. Under the default sensitivity, the credit impairments reduce the value of credit exposures, resulting in lower available capital. The downward rating migrations of credit instruments increase the amount of required capital. Longevity sensitivities All main business units contribute to the company-wide risk that people will live longer than the expectations embedded in our provisions. More details on local sensitivities and comparison with last year can be found on pages 86 - 88 of Aegon