1. Aegon plans to relocate its headquarters to the US by 2028. 2. The company aims to become a leading US life insurance group. 3. Aegon targets dividend growth exceeding 5% by 2025. 4. A new EUR 400 million share buyback program will start in 2026. 5. Strategic review of Aegon UK may include divestment options.
FAQ
Why Very Bullish?
The strategic shift to the US is expected to significantly enhance shareholder value, reminiscent of similar successful relocations in the past by major insurers. This move positions Aegon more favorably in the lucrative US market, likely driving stock performance.
How important is it?
The article outlines a transformative period for Aegon, indicating robust growth and shareholder returns, which is paramount for investor confidence. The strategic initiatives detailed indicate strong management foresight and ambition.
Why Long Term?
The transition and strategic plans are set to unfold over several years, specifically targeting growth through 2027. Long-term financial targets will likely shape the company's performance beyond immediate fluctuations.
Aegon Announces Strategic Shift at 2025 Capital Markets Day
On December 10, 2025, Aegon (NYSE: AEG) unveiled its ambitious plans to reposition itself as a leading life insurance and retirement group in the United States. During its Capital Markets Day in London, the company announced its intention to relocate its head office and legal domicile to the U.S., with a target completion date by January 1, 2028. Following this transition, Aegon Ltd. will rebrand itself as Transamerica Inc., although its business units will retain their current branding.
Strategic Highlights of Aegon’s Transition
- Aegon plans to enhance focus on profitable growth within its International business.
- Aegon Asset Management will concentrate on increasing third-party revenues while improving operational efficiency.
- The company is conducting a strategic review of Aegon UK, considering all options, including potential divestment.
Ambitious Financial Goals Set for 2025
Aegon aims to achieve all its financial targets for 2025, which include:
- Reduction of capital employed in Financial Assets through a reinsurance transaction affecting its Secondary Guarantee Universal Life (SGUL) block, leading to a USD 0.3 billion decrease in capital.
- A capital investment of USD 800 million to neutralize the negative impact on the RBC (Risk-Based Capital) ratio, generating an additional USD 75 million in annual remittances.
- A new EUR 400 million share buyback program slated for the first and second halves of 2026.
- Projected dividend growth exceeding 5% annually from around EUR 0.40 per share starting in 2025.
CEO Lard Friese on Strategic Transformation
Aegon's CEO, Lard Friese, stated, “Today marks a historical moment in the transformation of our company. Over the past five years, we have successfully transformed Aegon into a strong, focused, well-performing group. Now, we are ready for the next frontier: to fully capture the opportunities in the largest life insurance market in the world: the U.S.” Friese highlighted that approximately 70% of Aegon's operations are now positioned under the Transamerica umbrella, targeting Main Street American families and medium-sized businesses.
Reinsurance Strategy and Operational Efficiencies
Aegon is also executing a significant reinsurance transaction involving a portfolio of SGUL policies with a combined net face value of USD 10 billion. This includes:
- Covers 30% of the face value of its SGUL business, increasing the addressed total to a remarkable 80% of its SGUL portfolio.
- Reduces overall capital employed from USD 3 billion to USD 2.7 billion, surpassing the targeted reduction for 2025.
- Aims to mitigate variances and eliminate risks related to mortality and policyholder behavior.
Future Growth Prospects for Transamerica
In light of favorable market trends, Transamerica aims to maximize the value of its business portfolio by:
- Transforming World Financial Group (WFG), its distribution network, into the leading agent network for “Main Street” America, with targets to increase life sales by 14% annually.
- Scaling its Protection Solutions business to achieve a 15% annual increase in sales by 2027.
- Targeting USD 275 billion in retirement plan Assets under Administration (AuA) by 2027.
Aegon aims to grow its operating results by approximately 5% per annum between 2025 and 2027, underpinned by the SGUL reinsurance transaction.
Looking Ahead: Shareholder Engagement and Transition Costs
Aegon plans to convene an Extraordinary General Meeting in late 2026 to seek shareholder approval for the move. The transition is estimated to incur a one-time implementation cost of around EUR 350 million, expected between the second half of 2025 and the first half of 2028.
The largest shareholder, Vereniging Aegon, views this relocation as a significant and positive step for the company, pledging to consider upcoming proposals constructively.