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Aegon NV (AEG)
NYSE:AEG
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Aegon
(NYSE:AEG)
Rating:70Neutral
Price Target:
$7.50
▲(0.81% Upside)
Aegon (AEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.66B
Dividend Yield5.34%
Average Volume (3M)5.62M
Price to Earnings (P/E)16.4
Beta (1Y)1.03
Revenue Growth-5.03%
EPS GrowthN/A
CountryUS
Employees15,582
SectorFinancial
Sector Strength71
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,652,797,500
10 Day Avg. Volume4,550,423
30 Day Avg. Volume5,623,232
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue1.29
Enterprise Value/Gross Profit0.73
Enterprise Value/Ebitda4.39
Forecast
1Y Price Target
$7.50Price Target Upside0.81% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 primarily through premiums collected from life insurance policies and fees from asset management services. The company earns premium income from its life insurance and pension products, which are often designed to provide long-term financial protection and retirement income for policyholders. Additionally, Aegon receives management fees from its investment products and funds, which are based on the assets under management (AUM). This includes both active and passive investment strategies. Aegon also benefits from its partnerships with various financial institutions and advisors, which help distribute its products and broaden its customer base. The company's earnings are further supported by investment income generated from its large portfolio of bonds, equities, and real estate investments, which are utilized to back its insurance liabilities and fund its operations.
Aegon Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q1-2025)
| % Change Since: 9.25%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong capital generation and strategic initiatives like the share buyback program, balanced by challenges in mortality experience, U.K. adviser platform withdrawals, and net outflows in certain segments.Q1-2025 Updates
Positive Updates
Strong Operating Capital Generation
Operating capital generation before holding and funding expenses was €267 million, showing a 4% year-on-year increase driven by business growth.
Planned Share Buyback Program
A new share buyback program of €200 million was announced, set to commence in July, following a €150 million program, indicating a commitment to returning excess capital to shareholders.
Growth in U.S. Agent Base and Life Sales
The number of licensed agents in the World Financial Group increased by 16% to 88,000, leading to higher life sales.
Positive Trends in New Life Sales Internationally
An 11% year-over-year increase in new life sales was recorded in the International segment.
Solid Capital Position
Cash capital at holding stood at a healthy €1.6 billion, with gross financial leverage at €5.1 billion, consistent with target levels.
Negative Updates
Unfavorable Mortality Experience in the U.S.
There was an unfavorable mortality experience impacting the U.S. financial assets, particularly in Universal Life products with older age policies.
Net Outflows in Midsized Retirement Plans
Recorded net outflows of $283 million in midsized retirement plans due to lower gross deposits and elevated participant withdrawals.
Adverse Impacts in U.K. Adviser Platform
The U.K. Adviser platform faced adverse impacts due to ongoing consolidation in non-target adviser segments and elevated levels of withdrawals.
Challenges in Asset Management Joint Ventures
Net outflows occurred in asset management joint ventures, particularly as clients withdrew money from mutual funds in China.
U.S. RBC Ratio Decrease
The U.S. RBC ratio decreased by 7 percentage points to 436% due to market movements and one-time items.
Company Guidance
During the Aegon Q1 2025 earnings call, the company provided guidance on several key financial metrics. Operating capital generation before holding and funding expenses was €267 million, representing a 4% increase year-over-year, driven by business growth despite unfavorable mortality experience in U.S. financial assets. Free cash flow for the period amounted to €34 million, with cash capital at holding standing at €1.6 billion. The gross financial leverage was consistent at €5.1 billion. Aegon confirmed its target of approximately €1.2 billion in operating capital generation for 2025. Market volatility in April impacted the U.S. RBC ratio, which was expected to have a single-digit negative impact in Q2. A share buyback program of €200 million was announced, set to start in July and conclude by year-end, as part of the plan to reduce cash capital at the holding to around €1 billion by the end of 2026. The company remains on track to achieve all 2025 financial targets.Aegon Financial Statement Overview
Summary
Aegon is on a recovery path with improved profitability and a stable balance sheet. However, revenue volatility and challenges in equity retention persist. Positive cash flow conversion and reduced net debt are strong indicators of recovery, but sustaining growth remains a challenge.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.52B | 29.54B | 53.77B | 46.14B | 44.33B |
| Gross Profit | 19.52B | 22.88B | -15.85B | 46.14B | 44.33B |
| EBITDA | 635.00M | -204.00M | 1.00B | 2.21B | 169.00M |
| Net Income | 688.00M | -179.00M | -570.00M | 1.98B | -135.00M |
Balance Sheet | |||||
| Total Assets | 327.39B | 301.58B | 401.79B | 468.25B | 443.81B |
| Cash, Cash Equivalents and Short-Term Investments | 58.18B | 4.07B | 64.31B | 108.25B | 109.00B |
| Total Debt | 5.00B | 4.92B | 6.67B | 12.23B | 11.07B |
| Total Liabilities | 318.08B | 292.03B | 387.60B | 441.88B | 419.15B |
| Stockholders Equity | 9.19B | 7.55B | 14.01B | 26.18B | 24.59B |
Cash Flow | |||||
| Free Cash Flow | 696.00M | 748.00M | 2.75B | -1.91B | -2.97B |
| Operating Cash Flow | 762.00M | 864.00M | 2.85B | -1.80B | -2.85B |
| Investing Cash Flow | 300.00M | -2.00B | 616.00M | -54.00M | -139.00M |
| Financing Cash Flow | -1.75B | -3.24B | -1.92B | 300.00M | -778.00M |
Aegon Technical Analysis
Positive
7.44
Price Trends
7.08
Positive
6.73
Positive
6.44
Positive
Market Momentum
0.08
Negative
62.95
Neutral
96.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEG, the sentiment is Positive. The current price of 7.44 is above the 20-day moving average (MA) of 7.18, above the 50-day MA of 7.08, and above the 200-day MA of 6.44, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.95 is Neutral, neither overbought nor oversold. The STOCH value of 96.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEG.
Aegon Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $36.28B | 11.70 | 19.55% | 1.57% | 7.67% | 15.99% | |
75 Outperform | $9.32B | 10.62 | 14.63% | 8.21% | 14.20% | 50.32% | |
72 Outperform | $17.04B | 15.40 | 10.16% | 3.87% | -3.34% | -3.32% | |
70 Neutral | $11.66B | 16.39 | 9.36% | 5.34% | -5.03% | ― | |
65 Neutral | $16.02B | 42.84 | 34.30% | 1.86% | 5.05% | -47.26% | |
58 Neutral | HK$111.68B | 6.59 | -4.20% | 3.97% | 9.04% | -46.99% | |
58 Neutral | $43.56B | 14.57 | 7.61% | 2.10% | -33.87% | -5.72% |
* Financial Sector Average
Performance Comparison
AEG
Aegon
7.44
1.53
25.89%
AIG
American International Group
78.48
7.09
9.93%
HIG
Hartford Financial
129.02
21.23
19.70%
ORI
Old Republic International
37.89
6.52
20.78%
PFG
Principal Financial
77.24
4.04
5.52%
EQH
Equitable Holdings
54.84
16.38
42.59%
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.