Aegon to sell Aegon UK to Standard Life in GBP 2B transaction

The transaction marks the completion of the strategic review of Aegon (AEG) UK. The proceeds are valued at GBP 2B and consist of a shareholding of 15.3%, or 181.1M shares, in Standard Life and a cash amount of GBP 0.75B. Any remittances taken out of Aegon UK between the signing and closing of the transaction will be deducted from the GBP 0.75B cash amount. Total consideration is equivalent to 14.2x 2025 operating result after tax and 1.9x 2025 IFRS Shareholder’s equity. The cash received from the transaction, minus the value of the remittances that were expected to be received from Aegon UK between the signing and the closing of the transaction, is expected to be used for a combination of deleveraging and share buybacks, once the transaction is completed. Aegon’s group financial ambitions for 2026 and 2027, as communicated at its Capital Markets Day 2025, will be updated to reflect the transaction announced, with target growth rates unchanged but starting from an adjusted base level. Aegon’s asset management activities in the UK will remain part of Aegon’s global asset manager and will be an important asset management partner for the new combined business. The transaction is expected to close around the end of 2026, subject to customary conditions, including regulatory approvals. The relationship agreement with Standard Life entitles Aegon to appoint one non-executive director on the board of Standard Life. Following the completion of the transaction, Aegon will enter into a lock-up period with respect to the shares received as part of the transaction. This period will last until the earliest of 18 months following the transaction completion date or the completion of the redomiciliation of Aegon Ltd to the United States.