Aegon Raises 2023 Guidance on Strong Q3 Performance

By Elena Vardon

Aegon, the Dutch insurer and asset-manager, has raised its 2023 guidance following better-than-expected gross operating capital generation in the third quarter. The company attributes this positive result to business growth and improved underwriting variances.

New Operating Capital Generation Target

Aegon now expects full-year operating capital generation from its business units to be approximately 1.2 billion euros ($1.30 billion). This is an increase from the previous guidance of over EUR1.0 billion, as announced on Thursday.

Impressive Q3 Results

In the three months ended September 30, the Amsterdam-listed group recorded EUR354 million euros in operating capital generation before holding funding and operating expenses. This figure represents a 16% increase compared to the same period last year and surpasses the average estimate of EUR277 million from a company-compiled consensus.

Strong Commercial Momentum

Aegon's Chief Executive, Lard Friese, expressed satisfaction with the continued commercial momentum in the U.S. and the overall strong operating capital generation. He also noted the positive impact of exceptional items on the company's performance.

Cash Capital at Holding Surpasses Expectations

For the quarter, Aegon reported a rise in cash capital at holding to EUR2.9 billion, exceeding the consensus expectation of EUR2.81 billion. This increase was mainly driven by proceeds from the combination of Aegon's Dutch business with ASR Nederland, a peer company.