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Aegon Nv (AEG)
NYSE:AEG
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Aegon
(NYSE:AEG)
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Rating:67Neutral
Price Target:
$8.50
▲(8.14% Upside)
Action:ReiteratedDate:01/13/26
The score is driven primarily by improving financial performance (return to profitability and decent cash conversion), supported by attractive valuation (low P/E and strong dividend yield). Technicals are mildly constructive with the price above key moving averages and neutral momentum indicators.
Positive Factors
Strategic Relocation to US
Relocating to the US strengthens Aegon's market position in its largest operational region, potentially enhancing competitive advantages and growth opportunities.
Strong Operating Results
Improved operating results indicate robust business growth and effective management, supporting long-term profitability and market competitiveness.
Expansion of Share Buyback Program
Expanding the share buyback program reflects confidence in financial health and commitment to enhancing shareholder value over the long term.
Negative Factors
Decrease in Operating Capital Generation
A decline in operating capital generation may indicate challenges in sustaining business operations and funding growth initiatives.
Decrease in Group Solvency Ratio
A lower solvency ratio can impact financial stability and limit the company's ability to absorb shocks, posing risks to long-term resilience.
Impact of Exchange Rate Movements
Exchange rate fluctuations can affect financial results and valuation, potentially complicating financial planning and performance assessment.
Aegon (AEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.17B
Dividend Yield5.77%
Average Volume (3M)5.27M
Price to Earnings (P/E)8.2
Beta (1Y)1.05
Revenue Growth-6.19%
EPS GrowthN/A
CountryUS
Employees15,582
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.27
Shares Outstanding1,573,119,900
10 Day Avg. Volume6,490,666
30 Day Avg. Volume5,268,790
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.24
Price to Sales (P/S)0.59
P/FCF Ratio16.08
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit0.47
Enterprise Value/Ebitda-1.94
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.02
Revenue Forecast (FY)$17.18B
Aegon Business Overview & Revenue Model
Company DescriptionAegon Ltd. provides insurance, pensions, and asset management services in the Americas, the Netherlands, and the United Kingdom. The company offers life, accident, and health insurance; savings, pension, annuities, and mutual funds; property and casualty insurance; retirement plans and individual retirement accounts; voluntary employee benefits; and stable value solutions. It also provides debt securities; mortgage loans; derivatives; reinsurance assets; other loans; money market and short-term investments; credit risk management; disability services; and digital banking solutions. Aegon N.V. was founded in 1983 and is headquartered in The Hague, the Netherlands.
How the Company Makes MoneyAegon generates revenue through several key streams. The primary source is the premiums collected from life insurance policies and annuities, which contribute significantly to its income. Additionally, the company earns money through investment management fees from its asset management division, where it manages investments for both retail and institutional clients. Aegon also benefits from fees related to pension products and services. Significant partnerships with financial institutions and distribution networks enhance its reach and customer base, further contributing to its earnings. Overall, the combination of these revenue streams, along with prudent investment strategies, positions Aegon to achieve sustainable profitability.
Aegon Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive performance: Aegon met or exceeded its 2025 financial targets, delivered strong commercial momentum (notably in U.S. strategic assets and WFG), improved CSM and valuation equity per share, returned meaningful capital to shareholders (dividends and buybacks), and maintained robust solvency metrics. Key challenges included one‑off and non‑operating losses related to the SGUL reinsurance transaction, some legal settlements, modest increases in credit reserves, variability in OCG components (new business strain and capital release timing), and selective market/regulatory headwinds in the U.K. adviser platform and China. Overall, the positives — consistent target delivery, strong U.S. commercial execution, capital returns, and solid capital ratios — materially outweigh the identified lowlights, though monitoring of the highlighted risks (SGUL effects, flow volatility, and credit/ECL movements) is warranted.Q4-2025 Updates
Positive Updates
Met or Outperformed 2025 Financial Targets
Aegon met or exceeded all 2025 financial targets: operating capital generation before holding and funding expenses rose to EUR 1.3 billion (ahead of target), operating results for the full year increased 15% year‑on‑year to EUR 1.7 billion, and free cash flow for 2025 was EUR 829 million (in line with the ~EUR 800m target).
Capital Returns to Shareholders
Returned capital via dividends and buybacks: proposed final dividend EUR 0.21 per common share (full year dividend EUR 0.40, up 14% from EUR 0.35 in 2024), executed EUR 400 million of H2 2025 buybacks and launched the first half of a new EUR 400 million 2026 buyback (EUR 227 million underway).
Strong U.S. Commercial Momentum and Strategic Asset Growth
U.S. strategic assets strengthened: capital employed in U.S. strategic assets $2.7 billion at year‑end (ahead of target); World Financial Group (WFG) licensed agents nearly 96,000 (up 11% year‑on‑year, on track to ~110,000 by 2027); new life sales +10% and annuities +6%; Individual Life new life sales up 30%; indexed annuity net deposits rose 45% in 2025.
OCG and Operating Results Momentum
Operating capital generation improved: group operating results increased 15% YoY to EUR 1.7 billion for full year; H2 operating results rose 11% YoY to EUR 858 million; OCG before holding/funding/operating expenses increased 8% YoY (H2) with U.S. OCG up 19% (27% in USD) over the same period.
CSM and Valuation Equity Improvement
Customer service margin (CSM) and valuation equity per share advanced: CSM rose materially in H2 with a 24% increase in the Americas' CSM in H2 (driven by profitable new business and favorable assumption changes); valuation equity per share increased by EUR 0.60 over the period and stood at EUR 9.06 per share (7 percentage point increase in H2).
Robust Capital and Solvency Metrics
Strong capital position: group solvency ratio robust at 184%; U.S. RBC ratio increased to 424% (up 4 percentage points vs June 2025); Scottish Equitable solvency ratio remained high at 183% (down 2 percentage points).
Positive Commercial Performance Outside U.S.
Solid performance elsewhere: Aegon U.K. Workplace Platform delivered healthy net deposits; International businesses reported higher new life sales in markets such as Brazil, Spain and Portugal; Aegon Asset Management recorded positive third‑party net deposits across global platforms and strategic partnerships (though at a lower level than prior year).
Aegon Asset Management Margin Improvement
Operating margin expansion in asset management: management highlighted margin improvement (nearly doubled to ~17%), and growth initiatives such as expanded CLO warehouse capacity in U.S. and Europe to grow higher‑margin third‑party business.
Execution of Strategic Plan & U.S. Relocation Preparations
Progress on strategic transformation: company finished 2025 ahead of targets set at the 2023 Capital Markets Day, materially shifted capital/emphasis toward U.S. strategic assets, and is progressing U.S. GAAP implementation and preparations for proposed U.S. redomiciliation as planned.
Negative Updates
Non‑operating and Fair Value Headwinds
IFRS net results in H2 included unfavorable non‑operating items notably realized losses on assets transferred as part of the SGUL reinsurance transaction (P&L impact but offset in other comprehensive income) and negative fair value revaluations (including solvency hedge revaluations in the U.K.).
Charges and Legal Settlements
Other charges in the U.S. of around USD 230 million include two legal settlements (awaiting court approval); these items contributed to H2 non‑operating/other charges and were cited as part of the U.S. charge bucket.
ECL Increases and Some Credit Downgrades/Defaults
Net impairments rose modestly due to an increase in expected credit loss (ECL) reserves from new investment purchases and a small number of downgrades/defaults across bond holdings and ABS — noted as currently limited but monitored as a risk area.
Volatility in OCG Components and Elevated New Business Strain
H2 OCG benefited from favorable mortality/morbidity and capital release but included elevated new business strain (EUR 34 million above guidance) and variability in required capital releases — underlying OCG adjusts to the bottom end of the intended run rate and indicates potential quarter‑to‑quarter volatility.
UK Adviser Platform Net Outflows & Market Pressures
Aegon U.K. Adviser Platform experienced net outflows in 2025 due to ongoing consolidation and vertical integration in nontarget adviser segments; overall U.K. workplace flows were positive but adviser platform pressure remains a challenge.
China Sales Impacted by Pricing & Macro
New life sales in China were negatively impacted by product repricing to comply with new regulations and the prevailing economic environment, reducing growth in that market.
Asset Management Flows Below Prior Year / H2 Outflows
While Aegon Asset Management had positive net deposits for the year, net third‑party inflows were lower than last year; H2 saw notable outflows including a client redemption from a U.S. high‑yield fund and allocation changes related to ASR, contributing to weaker AUM flows in the period.
Impact of SGUL Reinsurance and Capital Movements
SGUL reinsurance transaction had capital impacts: negative effect on RBC ratio (~3 percentage points) and required capital injections into Transamerica (~EUR 751 million in capital injections across businesses), funded partly via disposal of ASR shares; cash capital at holding decreased to EUR 1.3 billion as capital was returned to shareholders and injected into businesses.
Company Guidance
Aegon reiterated a clear set of targets and near‑term guidance: grow group operating result by around 5% p.a. over 2026–27 (from a EUR 1.5–1.7bn run‑rate in 2025, assuming $1.20/€), maintain U.S. OCG roughly within $200–240m per quarter, and reach a cash‑at‑holding midpoint of ~EUR 1.0bn by end‑2026. For 2025 management reported OCG before holding/funding at EUR 1.3bn, full‑year operating result EUR 1.7bn (+15% y/y), OCG after holding/funding/opex EUR 992m, free cash flow EUR 829m (H2 FCF EUR 388m), cash capital at holding EUR 1.3bn, valuation equity per share EUR 9.06 (+EUR 0.60 H2), group solvency 184%, gross financial leverage EUR 4.9bn, U.S. RBC 424% and Scottish Equitable solvency 183%. Capital return and deployment metrics: full‑year dividend EUR 0.40/share (final EUR 0.21), nearly EUR 1bn returned via dividends and buybacks, EUR 400m buybacks executed in H2‑2025 and a new EUR 400m 2026 program (EUR 227m launched for H1), share count down ~5%, and capital injections of EUR 751m. Commercial and balance‑sheet datapoints supporting the guidance included ~96,000 WFG licensed agents (+11%), new life sales +10% (individual life +30%), annuities +6%, indexed annuity net deposits +45%, U.S. strategic assets capital employed $2.7bn, Protection Solutions CSM $4.3bn (H1 $3.6bn) and financial‑assets CSM $3.2bn (from $3.8bn).Aegon Financial Statement Overview
Summary
Profitability has improved with a swing to positive net income in 2024 and a positive 3.52% net margin, supported by generally favorable cash conversion. Offsetting this, revenue has been volatile and equity has declined over time, with a low equity ratio (2.81%) indicating limited equity cushion.Income Statement
Aegon's income statement shows signs of recovery with a significant positive swing in net income from a loss in previous years to a profit in 2024. The gross profit margin remains consistent as total revenue equals gross profit, indicating no direct costs of goods sold. However, revenue has been volatile, with a sharp decline in recent years followed by a recovery. The net profit margin improved from negative to a positive 3.52% in 2024.64
Positive
Balance Sheet
The balance sheet reflects a moderate financial structure with a debt-to-equity ratio of 0.54 in 2024, indicating reasonable leverage. However, stockholders' equity has seen a decline over the years, suggesting potential pressure on financial stability. The equity ratio is at 2.81%, highlighting a low proportion of equity financing relative to assets.58
Neutral
Cash Flow
Cash flow analysis shows a positive trend in free cash flow, despite a decline in operating cash flow from 2023 to 2024. The free cash flow to net income ratio is favorable, suggesting effective cash conversion. However, the operating cash flow to net income ratio is at 1.11, indicating room for improvement in operational efficiency.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.95B | 19.52B | 12.98B | -21.64B | 46.50B | 40.65B |
| Gross Profit | 22.95B | 19.52B | 2.37B | 14.29B | 46.50B | 40.65B |
| EBITDA | -5.59B | 635.00M | -204.00M | 1.00B | 2.58B | 169.00M |
| Net Income | 1.30B | 688.00M | -179.00M | -570.00M | 1.98B | 45.00M |
Balance Sheet | ||||||
| Total Assets | 310.63B | 327.39B | 301.58B | 401.79B | 468.25B | 443.81B |
| Cash, Cash Equivalents and Short-Term Investments | 53.68B | 58.18B | 4.07B | 64.31B | 108.25B | 109.00B |
| Total Debt | 4.27B | 5.00B | 4.92B | 6.67B | 12.23B | 11.07B |
| Total Liabilities | 301.25B | 318.08B | 292.03B | 387.60B | 441.88B | 419.15B |
| Stockholders Equity | 9.26B | 9.19B | 7.55B | 10.76B | 26.18B | 24.59B |
Cash Flow | ||||||
| Free Cash Flow | -116.00M | 711.00M | 799.00M | 2.75B | -1.91B | -2.97B |
| Operating Cash Flow | -61.00M | 762.00M | 864.00M | 2.85B | -1.80B | -2.85B |
| Investing Cash Flow | 447.00M | 300.00M | -2.00B | 616.00M | -54.00M | -139.00M |
| Financing Cash Flow | -1.48B | -1.75B | -3.24B | -1.83B | 300.00M | -778.00M |
Aegon Technical Analysis
Neutral
7.86
Price Trends
7.68
Negative
7.66
Negative
7.39
Positive
Market Momentum
-0.06
Positive
48.36
Neutral
35.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEG, the sentiment is Neutral. The current price of 7.86 is above the 20-day moving average (MA) of 7.70, above the 50-day MA of 7.68, and above the 200-day MA of 7.39, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 35.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AEG.
Aegon Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $35.97B | 8.55 | 19.54% | ― | 16.68% | -28.54% | |
79 Outperform | $38.77B | 10.55 | 21.66% | 1.55% | 7.11% | 22.52% | |
73 Outperform | $20.57B | 18.06 | 10.32% | 3.44% | 12.33% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $11.17B | 8.19 | 14.42% | 5.77% | -6.19% | ― | |
67 Neutral | $42.84B | 14.71 | 7.40% | 2.02% | -23.02% | 52.43% | |
46 Neutral | $11.78B | -8.52 | -182.66% | 2.15% | 7.70% | -155.12% |
* Financial Sector Average
AEG
Aegon
7.60
1.64
27.62%
AIG
American International Group
80.15
3.62
4.73%
ACGL
Arch Capital Group
99.36
9.79
10.93%
HIG
Hartford Insurance
141.06
27.40
24.11%
PFG
Principal Financial
94.68
11.99
14.50%
EQH
Equitable Holdings
41.11
-11.84
-22.36%
Aegon Corporate Events
Aegon Launches €227 Million Share Buyback Program with Pro Rata Participation from Largest Shareholder
Jan 12, 2026
On January 12, 2026, Aegon announced it has begun a €227 million share buyback program, comprising €200 million of the €400 million repurchase unveiled on December 10, 2025, plus an additional €27 million to cover obligations under senior management share-based compensation plans. The buyback, expected to run through June 30, 2026, will be executed by a third party on the market within price limits linked to the volume-weighted average share price, and Aegon plans to cancel the shares associated with the €200 million capital return component, underscoring an ongoing focus on capital management and shareholder returns. Aegon’s largest shareholder, Vereniging Aegon, will participate pro rata in the program based on its roughly 18.4% of exercisable voting rights, corresponding to about €37 million of shares to be repurchased from the association at market-based prices, a structure that maintains proportional ownership while signaling confidence in the company’s balance sheet and supporting earnings per share over time.
The most recent analyst rating on (AEG) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Aegon stock, see the AEG Stock Forecast page.
Aegon Completes EUR 400 Million Share Buyback Program
Dec 16, 2025
On December 16, 2025, Aegon announced the completion of its EUR 400 million share buyback program, which began on July 1, 2025. Initially set at EUR 200 million, the program was expanded on August 25, 2025, by an additional EUR 200 million. Over the period from July 1 to December 15, 2025, Aegon repurchased 61,197,437 common shares at an average price of EUR 6.4772 per share, and plans to cancel these shares in December 2025. This strategic move is likely to enhance shareholder value and reflects Aegon’s commitment to optimizing its capital structure.
The most recent analyst rating on (AEG) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Aegon stock, see the AEG Stock Forecast page.
Aegon Announces Strategic Move to US, Rebranding as Transamerica
Dec 10, 2025
On December 10, 2025, Aegon announced its strategic plan to relocate its head office and legal seat to the US, renaming itself Transamerica Inc. by January 1, 2028. This move aims to strengthen its position in the US life insurance market, which represents 70% of its operations. The transition involves a strategic review of Aegon UK, a reinsurance transaction to reduce capital employed, and a new share buyback program. The relocation will incur an estimated one-time cost of EUR 350 million, with the company planning to report under US GAAP by 2027. This decision is expected to have significant organizational implications, particularly for its head office in the Netherlands, and requires shareholder approval in 2026.
The most recent analyst rating on (AEG) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Aegon stock, see the AEG Stock Forecast page.
Aegon Ltd. Reports Strong Q3 2025 Results and Strategic Growth
Nov 13, 2025
Aegon Ltd. reported a strong third quarter in 2025, with an operating capital generation of EUR 340 million and cash capital at holding of EUR 1.9 billion. The company successfully sold 12.5 million shares in a.s.r. for EUR 700 million and is on track to meet its financial targets for the year. Despite net outflows in its UK platform business, Aegon saw significant growth in its US Strategic Assets, with a 39% increase in Individual Life sales and expanded market share in the World Financial Group. The company remains well-capitalized and anticipates further strategic updates at its upcoming Capital Markets Day.
The most recent analyst rating on (AEG) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Aegon stock, see the AEG Stock Forecast page.
Aegon Announces Board Leadership Changes Effective November 2025
Nov 3, 2025
On November 3, 2025, Aegon announced changes to its Board of Directors, with David Herzog set to succeed William Connelly as Chairman on November 13, 2025. Connelly will retire from his position on the same date. Additionally, Aegon plans to propose Leni Boeren as a new board member at the 2026 Annual General Meeting. Boeren brings extensive experience from her roles in the financial services industry, including positions at Kempen Capital Management and Robeco Groep. These changes are expected to support Aegon’s strategic goals and ongoing transformation efforts.
The most recent analyst rating on (AEG) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Aegon stock, see the AEG Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.