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Aegon NV (AEG)
NYSE:AEG
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Aegon
(NYSE:AEG)
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Rating:69Neutral
Price Target:
$8.00
▼(-0.62% Downside)
Aegon's overall stock score is driven by strong technical indicators and positive earnings call highlights, including strategic growth initiatives and solid operating results. Financial performance shows a recovery path, though challenges in revenue volatility and equity retention remain. Valuation is attractive with a reasonable P/E ratio and high dividend yield.
Aegon (AEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.39B
Dividend Yield5.49%
Average Volume (3M)4.55M
Price to Earnings (P/E)8.7
Beta (1Y)1.02
Revenue Growth-6.19%
EPS GrowthN/A
CountryUS
Employees15,582
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.40
Shares Outstanding1,652,797,500
10 Day Avg. Volume4,301,487
30 Day Avg. Volume4,550,551
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit0.73
Enterprise Value/Ebitda4.39
Forecast
1Y Price Target
$8.00Price Target Upside-0.62% Downside
Rating ConsensusHold
Number of Analyst Covering0
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:Aug 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operating results and strategic initiatives such as dividend increases and share buybacks, but also noted challenges like decreased operating capital generation and the impact of exchange rate movements.Q2-2025 Updates
Positive Updates
Strong Operating Results
Operating result was EUR 845 million, up 19% compared with last year, driven by profitable business growth and improved claims experience in the U.S., U.K., and International segment.
Increased Interim Dividend
Interim dividend increased by EUR 0.03 compared with last year to EUR 0.19 per common share.
Expansion of Share Buyback Program
Announced a EUR 200 million increase to the current share buyback program, totaling EUR 400 million of shares during the second half of 2025.
Strong Commercial Momentum in the Americas
Transamerica's new life sales increased by 13% in the Individual Life business, with a 14% increase in the number of licensed agents.
Solid Free Cash Flow
Free cash flow in the first half of 2025 amounted to EUR 442 million, a significant increase compared to EUR 373 million last year.
Negative Updates
Decrease in Operating Capital Generation
Operating capital generation before holding and funding expenses amounted to EUR 576 million, decreasing by 2% over the same period.
Decrease in Group Solvency Ratio
Group solvency ratio decreased by 5 percentage points compared with year-end 2024 to 183%.
Impact of Exchange Rate Movements
Valuation equity per share decreased by 5 percentage points over the first half of 2025 due to the impact of unfavorable exchange rate movements.
Company Guidance
During Aegon's First Half 2025 Results Conference Call, the company reported significant progress towards its strategic goals. The operating result was EUR 845 million, marking a 19% increase from the previous year, driven by profitable business growth and improved claims experience in key markets. Operating capital generation before holding and funding expenses slightly decreased by 2% to EUR 576 million, while new business strain increased, particularly in U.S. strategic assets. The U.S. division performed well, with a 13% increase in new life sales and a near doubling of net deposits for the RILA product. Aegon's cash capital holding was over EUR 2 billion, bolstered by remittances and the completion of a EUR 150 million share buyback. The interim dividend was raised by EUR 0.03 to EUR 0.19 per share, and the share buyback program was expanded by EUR 200 million, totaling EUR 400 million for the second half of 2025. Additionally, Aegon is reviewing the potential relocation of its head office to the U.S., considering the country's significant contribution to its operations and strategic focus. The company remains on track to meet its financial targets for 2025.Aegon Financial Statement Overview
Summary
Aegon shows signs of recovery with improved profitability and a stable balance sheet. Despite challenges in revenue volatility and equity retention, the company demonstrates positive cash flow conversion and reduced net debt.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
8.05
Price Trends
7.38
Positive
7.04
Positive
6.51
Positive
Market Momentum
0.16
Negative
70.74
Negative
84.81
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 8.05 is above the 20-day moving average (MA) of 7.70, above the 50-day MA of 7.38, and above the 200-day MA of 6.51, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 70.74 is Negative, neither overbought nor oversold. The STOCH value of 84.81 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 37.07B | 11.95 | 18.52% | 1.58% | 7.67% | 15.99% | |
76 Outperform | 10.27B | 11.64 | 14.44% | 7.59% | 14.20% | 50.32% | |
73 Outperform | 18.23B | 16.59 | 14.17% | 3.69% | -3.34% | -3.32% | |
70 Outperform | 43.16B | 14.22 | 7.71% | 2.18% | -33.87% | -5.72% | |
69 Neutral | $12.39B | 8.73 | 14.42% | 5.49% | -6.19% | ― | |
57 Neutral | 15.75B | 43.59 | 41.69% | 1.94% | 5.05% | -47.26% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
AEG
Aegon
8.05
1.93
31.54%
AIG
American International Group
77.90
6.33
8.84%
ACGL
Arch Capital Group
90.76
-16.28
-15.21%
HIG
Hartford Financial
131.85
17.25
15.05%
PFG
Principal Financial
81.84
-1.02
-1.23%
EQH
Equitable Holdings
52.59
11.44
27.80%
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.