Aegon: 2024 capital generation forecast raised

(CercleFinance.com) - On Friday, Aegon was the biggest riser on the Amsterdam Stock Exchange's AEX index, following a warmly welcomed business update in which the Dutch insurer raised some of its targets.


This morning, the group reported Q3 capital generation of E336m, mainly on the strength of its US business.

With capital generation now reaching E900m for the first nine months of the year, Aegon says it is on track to generate E1.2bn in capital this year, against a previous target of around E1.1bn.

Aegon's cash position stands at E1.5bn.

Despite some volatility in our sales performance, we are well on track to achieve the guidance we set out at our 2023 Investor Day, it said.

For the record, Aegon stated that it was aiming to generate operating capital of some E1.2bn by 2025, with free cash flow of around E800m by the same date.

According to these forecasts, its dividend per share should increase to E0.40 in 2025.

On the strength of this performance, the insurance group has decided to launch a share buyback program worth E150m, starting in January 2025 and ending by end-June next year.

In a press release, Aegon states that it plans to review its strategy and unveil new targets at an investor day on 10 December 2025.

The stock gained 1.2% following these announcements, after rising up to 4% at the very start of trading.


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