Aegon Ltd. (Aegon), an international financial services company, offers their customers investment, protection, and retirement solutions.
Aegon’s portfolio includes fully owned businesses in the Americas and the United Kingdom, a global asset manager, and a life insurer that serves affluent and high-net-worth individuals predominantly in Asia. Aegon also has insurance joint ventures in Spain & Portugal, China, and Brazil, as well as asset management partnerships in France and China, and an almo...
Aegon Ltd. (Aegon), an international financial services company, offers their customers investment, protection, and retirement solutions.
Aegon’s portfolio includes fully owned businesses in the Americas and the United Kingdom, a global asset manager, and a life insurer that serves affluent and high-net-worth individuals predominantly in Asia. Aegon also has insurance joint ventures in Spain & Portugal, China, and Brazil, as well as asset management partnerships in France and China, and an almost 30% strategic shareholding in the Dutch insurance company a.s.r.
Aegon derives its revenue and earnings from insurance premiums, investment returns, fees, and commissions. Aegon is growing its direct and affiliated distribution capabilities to engage directly with customers.
In the Americas, Aegon operates primarily under two brands. The first, Transamerica, is a leading provider of life insurance, retirement, and investment solutions, which serves millions of customers with a strong track record of making financial services available to the many, not just the few. The second, World Financial Group (WFG), is an affiliated insurance distribution network of over 86,000 independent agents who primarily serve middle-income households across the United States and Canada.
The company offers a broad range of solutions to individuals, advisors, and employers. Aegon UK serves its customers through a combination of workplace and retail financial advisors.
In Spain & Portugal, Aegon has a strategic partnership with Banco Santander to distribute life, health, and non-life insurance products through the bank’s branches, with Aegon owning a 51% stake in the joint venture. Aegon Spain’s own distribution channel offers life insurance, health insurance, and pension products.
In China, Aegon owns a 50% stake in Aegon THTF Life Insurance Company, which offers life insurance solutions through a network of branches.
In Brazil, Aegon has a 59.2% economic interest and 50% of voting common shares in Mongeral Aegon Group (MAG Seguros), the country’s third-largest independent life insurer. MAG Seguros offers individual protection solutions. Together with Banco Cooperativo do Brasil (Bancoob), MAG Seguros also operates a joint venture company dedicated to providing life insurance and pension products within Sicoob, Brazil’s largest cooperative financial system.
Transamerica Life (Bermuda) provides life insurance products and services to affluent and high-net-worth individuals predominantly in Asia. The company writes business out of Hong Kong and Singapore.
Aegon Asset Management (Aegon AM) is an active global investment management business with EUR 332 billion of assets under management for a global client base, including Aegon’s subsidiaries and partnerships. Aegon owns 49% of Aegon-Industrial Fund Management Company, a Shanghai-based asset manager offering mutual funds, segregated accounts, and advisory services in China. In France, Aegon AM owns 25% of La Banque Postal Asset Management.
Following the transaction to combine Aegon’s Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r., Aegon owns a strategic shareholding of close to 30% in a.s.r., a leading Dutch insurance company.
The sale of Aegon’s 56% stake in its partnership in India, Aegon Life Insurance Company, to Bandhan Financial Holdings Limited, an Indian financial services company, was completed.
Aegon UK completed the sale of its UK individual protection book to Royal London, transferring legal ownership to Royal London through a Part VII transfer.
Strategy
The company’s strategies are to build on its strengths; clear strategic focus, delivered through its businesses and partnerships; a clear model for achieving its vision; and growing capital distributions.
Segment
The reportable segments are:
Americas: which covers business units in the United States, including any of the units’ activities located outside of the United States;
The United Kingdom: which covers business activities from platform business and traditional insurance in the United Kingdom;
International: which covers operations in Spain & Portugal, China, Brazil, Bermuda, Hong Kong, and Singapore, including any of the units’ activities located outside these countries;
Asset Management: which covers business activities from AAM Global Platforms and Strategic Partnerships;
Holding and other activities: which includes financing, employee, and other administrative expenses of holding companies.
The Netherlands: which covered business activities from Aegon the Netherlands (ceased to be a reporting segment following the completion of the transaction with a.s.r. in 2023).
Dispositions
On February 23, 2024, Aegon completed the divestment of the business - sale of its 56% stake in its associate - in India to lower the exposure to businesses outside of Aegon’s core focus that has been largely eliminated over recent years. The divestment did not have a material impact on Aegon’s capital position or results.
On July 1, 2024, the Part VII transfer of the individual protection policies relating to the sale of Aegon’s UK protection book to Royal London (announced in April 2023) was completed.
Acquisition
In February 2024, Aegon completed a strategic partnership with Nationwide Building Society (NBS) whereby Aegon acquired the existing financial planning service of NBS. The goodwill represents the value of the assembled workforce, platform cost synergies, and the ability of the established business to increase returns on an assembled collection of net assets.
Regulation and Supervision
The company has its legal domicile in Bermuda and Aegon’s group supervision is exercised by the Bermuda Monetary Authority (BMA), and, accordingly, the relevant Bermudian laws and regulations concerning group supervision are applicable.
Single-entity level Solvency II supervision is applicable in respect of Aegon’s regulated EEA insurance entities in Spain and Portugal. Aegon’s Asset Management activities in the Netherlands are supervised by the Authority Financial Markets (AFM) and DNB.
In addition, subgroup supervision is exercised by the UK Prudential Regulatory Authority with respect to entities established in the United Kingdom as subsidiaries of Aegon on the basis of the relevant provisions of the UK regulatory regime for insurers.
Aegon retains its designation as an Internationally Active Insurance Group (IAIG) in accordance with the principles of ComFrame (the Common Framework for the Supervision of IAIGs).
Americas
Aegon Americas operates in the United States and Canada.
In the United States, Aegon Americas operates primarily under two brands: Transamerica and World Financial Group. In Canada, it conducts business primarily through the World Financial Group brand. The use of the term ‘Transamerica’ throughout this business overview refers to the operating subsidiaries in the United States and Canada, collectively or individually, through which Aegon conducts business, except those United States operations described in the Overview of Aegon Asset Management.
Transamerica is a leading life insurance company in the United States, and the largest of Aegon’s operating units worldwide. Transamerica employs approximately 7,400 people, and its businesses in the United States serve customers in all 50 states, the District of Columbia, Puerto Rico, the US Virgin Islands, and Guam. The company’s primary offices are in Cedar Rapids, Iowa; Denver, Colorado; and Baltimore, Maryland. There are additional offices located throughout the United States.
Organizational structure
Transamerica Corporation is the holding company for Aegon’s US and Canadian operations, and all US and Canadian business is conducted through its subsidiaries. Transamerica entities collectively have operating licenses in every US state, and the District of Columbia, Puerto Rico, the US Virgin Islands, and Guam.
Transamerica provides insurance and financial solutions to meet its customers’ needs. It addresses the full range of customers’ financial protection, savings, and investment needs at every stage of life. Transamerica leverages its brand strength, expertise, and capabilities to fulfill Aegon’s purpose of helping people live their best lives.
Transamerica’s businesses are classified as either Strategic Assets or Financial Assets.
Strategic Assets are those considered to have a greater potential for an attractive return on capital and growth. Transamerica’s Strategic Assets are organized into three business segments: Distribution, which mostly consists of World Financial Group, Protection Solutions, and Savings & Investments. Generally, non-risk-bearing businesses are part of Savings & Investments, while Protection Solutions and Financial Assets contain the insurance businesses. The Savings & Investment business segment includes Retirement Plans, Mutual Funds, and Stable Value Solutions. The Protection Solutions business segment includes the Annuities, Individual Life, and Life and Health (Employee Benefits), and Individual Health lines of business. Transamerica offers these product lines through several distribution and sales channels and provides insurance primarily through its key insurance subsidiaries Transamerica Life Insurance Company and, in New York, Transamerica Financial Life Insurance Company.
Several Transamerica product lines are considered Financial Assets. Financial Assets are capital-intensive assets with relatively low returns on capital employed. They are generally ‘closed blocks’ no longer being offered for sale. Transamerica is actively managing variable annuities with interest rate-sensitive riders, fixed annuities - including Single Premium Group Annuities (SPGAs), the legacy universal life insurance book, and long-term care insurance portfolios (LTC) as Financial Assets. New sales for Financial Assets, if any, are limited and focused on products with higher returns and a moderate risk profile.
Overview of sales and distribution channels
Transamerica offers insurance and financial products and services through affiliated and non-affiliated distributors. Various sales channels support the Strategic Assets business, further split into Savings & Investments and Protection Solutions.
Transamerica’s Distribution business segment consists of World Financial Group (WFG), a wholly-owned subsidiary with agencies in the United States and Canada, a mutual fund dealer in Canada, and Transamerica Financial Advisors, a United States dually registered broker-dealer and investment advisor. WFG provides unique, differentiated access to the underserved middle market in the US and Canada. The WFG agent demographics are diverse across age, gender, ethnicity, and background to align with the middle market customers they serve. Transamerica intends to increase the number of WFG life insurance licensed, independent insurance agents to 110,000 by 2027, while at the same time improving agent productivity. Transamerica’s market share in WFG Distribution in the US amounted to approximately 63% for life insurance products in 2024 and remained consistent with the level observed throughout 2023, building on an enhanced service experience for WFG agents and quality products tailored to the US middle market.
Savings & investments
Transamerica distributes its retirement products and services to employers and works closely with plan advisors and third-party administrators to serve customers. In addition, the unit’s Advice Center deploys a team of experienced registered representatives, investment advisor representatives, and licensed insurance agents to serve group plan participants and assist with individual retirement accounts (IRA) and retirement portfolio management.
Transamerica distributes its Mutual Fund solutions through wholesaling agreements with intermediary banks, wirehouse brokerage firms, and independent broker-dealers through its wholesale broker-dealer, Transamerica Capital, LLC (TCL).
Protection Solutions
Annuity products – registered index-linked annuities (RILAs) and variable annuities (excluding those with interest rate-sensitive riders managed as part of Financial Assets) - are marketed by Transamerica’s wholesale distribution teams to registered representatives at wirehouse brokerage firms and banks through its wholesale broker-dealer, TCL, as well as through independent broker-dealers.
Life Insurance products are marketed through Transamerica’s wholesale distribution teams to WFG life licensed independent agents, Transamerica Agency Network agents (TAN), and other independent agents.
Transamerica Life and Health (Employee Benefits) solutions are marketed by Transamerica’s wholesale distribution teams (Commercial Broker Markets and Wholesale Markets teams) to general agents, agents, brokers, and third-party distributors that specialize in employee benefit programs. These distributors then offer these solutions to their employer, union, and association clients. They serve as the gateway to working Americans who purchase these programs to enhance the underlying employer-sponsored and contributory benefit plans, such as group major medical, disability, and life insurance.
Transamerica is enhancing investments in its product manufacturing capabilities and building an operating model to position its Life Insurance and Annuity businesses for further growth in the US middle market with expanded distribution by third parties.
Overview of business lines
Savings & Investments
Transamerica’s Savings & Investments business unit includes Retirement Plans, Mutual Funds, and Stable Value Solutions.
Retirement Plans
Comprehensive and customized retirement plan services are offered to employers across the entire range of defined benefit, defined contribution, and non-qualified deferred compensation plans for single-employer plans, multiple-employer plans (MEPs), and pooled-employer plans (PEPs). Services are also offered to individuals rolling over funds from other qualified retirement funds or IRAs.
Retirement plan services, including administration, record-keeping, and related services are offered to employers of all sizes and to plans across all market segments. Transamerica also works closely with plan advisors and third-party administrators to serve their customers.
Plan sponsors have access to a wide array of investment options, including Collective Investment Trusts (CITs) offered by Transamerica Trust Company and general account stable value group annuity contracts offered by Transamerica Life Insurance Company or, in New York, Transamerica Financial Life Insurance Company. Tools are provided to help plan participants monitor their retirement accounts and engage in behavior to stay on track toward a funded retirement. Managed Advice® is a managed account option that plan sponsors can make available to participants that provides investment advice to participants using the plan’s slate of funds.
For individuals, retirement-related services and products include IRAs, advisory services, and annuities, as well as access to other financial and insurance products and resources.
Mutual funds (and Collective Investment Trusts (CITs))
Mutual funds are professionally managed investment vehicles that consist of pooled money invested by numerous individuals or institutions. Such funds are invested in various underlying security types, such as stocks, bonds, money market instruments, and other securities. Transamerica offers mutual funds that are focused on several different asset classes, including US equity, global/international equity, fixed income, money markets, and alternative investments, as well as asset allocation and target-date funds with combined equity and fixed income strategies. Transamerica mutual funds use the portfolio management expertise of asset managers across the industry in a sub-advised platform, which are both affiliated with and not affiliated with Aegon. These managers are subject to a rigorous selection and monitoring due diligence process conducted by Transamerica Asset Management.
A CIT is a pooled investment fund, held by a bank or trust company, like Transamerica Trust Company, and is generally available only to certain types of retirement plans and other institutional investors. Transamerica serves as the advisor to some of the CITs it offers, which focus on several different asset classes, including US equity, international equity, and fixed income. Transamerica also leverages the portfolio management expertise of asset managers across the industry.
Stable Value Solutions
Transamerica’s Stable Value Solutions business offers synthetic guaranteed investment contracts (GICs) primarily to tax-qualified institutional entities, such as 401(k) plans and other retirement plans and education savings plans. A synthetic GIC ‘wrapper’ is offered around fixed income invested assets, which are owned by the plan and managed by the plan or a third-party money manager hired by the plan. A synthetic GIC is typically issued with an evergreen maturity and may be terminated under certain conditions. Such a contract helps to reduce fluctuations in the value of the wrapped assets and provides book value withdrawals for plan participants.
Protection Solutions
Transamerica’s Protection Solutions division includes the Annuities, Individual Life, Life and Health (Employee Benefits), and Individual Health lines of business.
Individual Life
Term life insurance
Term life insurance provides death benefit protection without cash value accumulation. Benefits are paid to policy beneficiaries in the event of the death of the insured during a specified period. Living benefit riders that provide accelerated death benefits for an insured’s critical illness or chronic condition are available on certain term life insurance policies.
Indexed universal life insurance
Indexed universal life (IUL) insurance provides death benefit protection until the policy maturity age and cash value accumulation with flexible premium payments. What distinguishes it from other types of traditional life insurance is the way in which interest earnings are credited. Net premiums may be allocated to either a fixed account or indexed accounts. Indexed accounts credit interest based in part on the performance of one or more market indices. The credited interest is based on the performance of an index, but with a floor and a cap. IUL offers both market-paced growth potential in the indexed accounts and downside protection. LTC riders and other living benefit riders are available on IUL products.
Whole life insurance
Whole life (WL) insurance provides death benefit protection until the policy maturity age, provided that the required premiums are paid while accumulating cash values based on statutory requirements. Premiums are generally fixed and usually payable over the life of the policy. Among the WL insurance products offered is final expense WL insurance, which is intended to cover the insured’s end-of-life medical bills and burial expenses.
Variable universal life insurance
Variable universal life (VUL) insurance is securities-registered life insurance that offers death benefit protection until the policy maturity age and cash value accumulation potential with financial market participation. The premium amount for VUL insurance is flexible and may be changed by the policy owner within contract limits. Coverage amounts may change as well. The investment feature usually includes ‘sub-accounts,’ which provide exposure to underlying investments, such as stocks and bonds. This exposure increases cash value return potential but also the risk of additional premium requirements or lower coverage amounts in comparison with a traditional, non-variable life insurance policy. Transamerica did not offer new sales of VUL insurance in 2024.
Life and Health (Employee Benefits)
Transamerica provides a suite of employer-sponsored life insurance programs offered in the workplace through payroll deduction to employees and their families. These employee benefit plans offer protection during the employees’ working years and into retirement, as they often can be continued/ported. These offerings include employer-sponsored group life and supplemental life insurance products (term life, whole life, universal life). Transamerica is a top five provider of these programs in the US.
The Health employee benefit plans offer accident and health products, including accidental death and dismemberment (AD&D), disability, and supplemental health insurance products (accident, cancer, critical illness, disability, executive medical, hospital indemnity, medical expense (gap), and retiree medical). These supplemental health benefits are designed to fill the gaps created by high deductible health plans and unexpected medical emergencies.
Individual Health
Supplemental health insurance products within Individual Health are managed as a closed inforce block.
Annuities
Registered Index-Linked Annuities (RILAs)
Transamerica began selling RILAs in 2022. RILAs offer tax-deferred long-term savings options that limit exposure to downside risk and provide the opportunity for growth. RILAs provide the opportunity for growth based, in part, on the performance of stock market indices. RILAs offer tax-deferred growth potential, annual free withdrawal amounts, and an option to convert the annuity into a stream of income for retirement, or for other long-term financial needs. RILA owners do not invest directly in the underlying index. Premiums are invested at Transamerica’s discretion, as outlined in the contract, and the RILA owner receives index-linked crediting, which can be positive or negative. The owner accepts a level of risk of market loss in exchange for higher upside potential.
Variable Annuities
Transamerica offers a suite of securities-registered Variable Annuities (VA) with optional Living Benefits, which can provide protection from market losses for principal and earnings, plus the potential for uncapped investment growth and income for life. While Transamerica continues to offer certain VAs, it discontinued sales of VAs with significant interest rate-sensitive living and death benefits during 2021 and now manages that business as a Financial Asset.
Fixed Index Annuities
Fixed index annuities allow the contract holder to accumulate assets for retirement on a tax-deferred basis through periodic interest crediting and principal protection. Transamerica stopped new sales of fixed index annuities during 2021. Transamerica stopped receiving premium deposits on fixed index annuities in 2022.
Financial Assets
Universal life insurance
Universal life (UL) insurance is flexible life insurance that offers death benefit protection until the policy maturity age, together with the potential for cash value accumulation. After the first few years, there is usually no set premium. The policy owner can adjust the frequency and amount of premium payments if sufficient premiums are accumulated in the policy’s account value to cover charges in the month that follows, which are called ‘monthly deductions.’ Some versions of this product, which are not actively sold, have ‘secondary guarantees.’ These maintain life insurance coverage even when the cash value is insufficient, as long as the customer pays a specified minimum premium.
Long-term care insurance
LTC insurance products are designed to provide in-home, or in-facility care for people with a chronic medical condition, disability, or disorder, such as Alzheimer’s disease. LTC insurance helps protect against the high cost of LTC services, and it may also help families better manage the financial, health, and safety issues associated with persons requiring LTC services. Transamerica offers an LTC rider on certain life insurance products but stopped offering standalone LTC products in 2021.
Variable Annuities
Variable Annuities (VAs) in Financial Assets allow the contract holder to accumulate assets for retirement on a tax-deferred basis and to participate in equity or bond market performance. Optional guarantees are offered through riders that can be added to a contract for an additional fee. VA riders include guaranteed minimum death benefits (GMDBs) and guaranteed living benefits (GLBs). GMDBs provide a guaranteed benefit in the event of the annuitant’s death. GLBs provide a measure of protection against market risk while the annuitant is living. Different forms of GLBs are available, offering a guaranteed income stream for life and/or guaranteeing principal protection. While Transamerica continues to offer certain VAs, it discontinued sales of VAs with significant interest rate-sensitive living and death benefits during 2021.
Fixed Annuities (including SPGAs)
Fixed annuities allow the contract holder to accumulate assets for retirement on a tax-deferred basis through periodic fixed interest crediting and principal protection. Transamerica stopped being active in fixed annuities in 2008, and all contract holders are now outside the surrender charge period.
Competition
In the registered index-linked annuity (RILA) market, Transamerica’s top competitors and the largest issuers are Equitable Financial, Brighthouse Financial, Prudential Financial, Allianz Life, and Lincoln National.
Some of Transamerica’s main competitors in the mutual fund market include John Hancock, Hartford Funds, Lord Abbett, PGIM, and Touchstone.
In the defined contribution plan administration market, Transamerica’s largest competitors (based on assets under administration) are Fidelity, Empower, TIAA, Vanguard, Alight, Principal Financial, and Voya.
In the market for synthetic guaranteed investment contracts (GICs), Transamerica’s Stable Value Solutions business, the largest competitors are Prudential Financial, MetLife, Voya, MassMutual, and Pacific Life.
Within WFG, the company’s main competitors on the life side are Pacific Life and Nationwide. Looking at WFG as a retail distributor, the largest competitor is Primerica.
Regulation and supervision
Variable life insurance, VAs (including RILAs), and mutual funds offered by Transamerica are subject to regulation under the federal securities laws administered and enforced by the SEC.
At the federal level, various Transamerica companies are subject to the Gramm-Leach-Bliley Act (GLBA), the Fair Credit Reporting Act (FCRA), and the Health Insurance Portability and Accountability Act (HIPAA), among other laws.
The United Kingdom
Aegon UK’s ambition is to build a champion in the UK savings and retirement market through the provision of a broad range of savings, investment, and retirement solutions products to individuals, advisers, and employers.
Aegon UK’s growth is driven by its interconnected business model comprising a workplace platform and an adviser platform, and supported by its own advice channel. The platform business delivers a range of propositions, seeking to partner with intermediaries in the delivery of services.
This model is complemented by a traditional products insurance business of products that are no longer actively marketed and an institutional trading platform. Aegon UK’s focus is on investing in its growth channels to create a more modern digital business, whilst leveraging the potential of its interconnected business model and engaging more directly with customers to support consolidation and retention, to and through retirement.
Aegon UK actively trades with over 3,500 adviser firms and around 9,000 employers, giving it 3.7 million customers and GBP 220 billion assets under administration (AUA) as of December 31, 2024.
Aegon UK plc is Aegon’s holding company in the United Kingdom. It was registered as a public limited company in December 1998. The leading operating subsidiaries, which all operate under the Aegon brand, are: Scottish Equitable plc; Cofunds Limited; Aegon Investment Solutions Limited; Aegon Investments Limited; and Origen Financial Services Limited.
Overview of sales and distribution
Aegon UK operates an interconnected business model with three growth franchises: the Workplace platform, the Adviser platform, and the Advice franchise, and two other businesses: Traditional products and the Institutional Platform.
Aegon UK works with those employers and advisers to deliver an online experience for customers. The platform is designed to support customers throughout their life as needs evolve by providing a comprehensive range of savings and investment products, moving with them each time they change employers, and allowing them to engage with different advisers.
This single set of products gives Aegon UK the flexibility required to support the modern, complex lives customers are living to and through retirement.
Aegon UK is investing to capitalize on its strong positions in the workplace and adviser platform markets and complements this by investments in its own advice channel to be able to drive value through the existing customer base.
Workplace platform channel
The Workplace platform channel provides UK-based employers with pensions and savings schemes. It allows Aegon UK to participate in the strongly growing auto-enrolment market, cost-effectively acquiring around 300,000 new individual scheme members per year (based on a three-year average).
Aegon UK serves the workplace platform market via three distribution channels/propositions. Medium-sized employers are served via corporate and retail advisers, large companies are served through Employee Benefit Consultants, and the partnership with Aon on their Mastertrust provides access to the largest corporate clients.
Employers are provided with an easy-to-use administration interface and market-leading capabilities, such as Member Insights, to help them unlock the value of their scheme. Employees are provided with a targeted and personalized approach to communication and engagement, underpinned by best-of-breed capabilities in education (Pension Geeks), guidance (Aegon Assist), and advice (Origen Financial Services Limited (Origen)).
Further personalizing the company’s customer engagement capability for workplace customers with the launch of Mylo, a digital engagement layer that aims to assist them throughout their lives, enabling them to better interact with their existing Aegon products.
Adviser platform channel
The Adviser platform channel gives financial advisers access to long-term savings and retirement products through an open architecture technology platform offering over 4,000 funds.
Aegon UK’s focus is on meeting the needs of its ‘target 500’ advisers. This is underpinned by the new digital front-end experience that was delivered in 2024, which improved the service to advisers and allows for the pace of future developments to be accelerated, and the differentiated proposition of offering a single platform for advisers wishing to serve both Workplace arrangements and individual savings for employees and their families.
Advice channel
Aegon UK has an established advisory business in Origen serving around 100,000 customers, which is a critical element of its workplace proposition providing employees with access to guidance and advice through their employer. It comprises two channels: Origen, a holistic advice capability with over 50 advisers providing services to high-net-worth clients and also servicing a number of corporate partnerships on complex areas; and Aegon Financial Planning, an advice channel acquired from the Nationwide Building Society (NBS) in 2024, with 145 advisers providing advice to the mass market and including an introducer arrangement for those advisers to continue to provide services to NBS customers.
Traditional products
Aegon UK manages a traditional products portfolio comprising two main elements: A Defined Contribution pensions administration business with 1.2 million customers and GBP 31 billion Assets Under Administration. While not open to new schemes, this business remains open to new members from existing schemes. Regular outflows from members are partially offset by anticipated market growth and contributions from continuing and new scheme members, and a small annuity book which is running off.
Institutional platform
Aegon UK offers an institutional trading and custody platform to around 25 firms.
Protection channel
In 2023, Aegon UK closed its individual protection channel to new business and announced the transfer of this line of business to The Royal London Mutual Insurance Society Limited (Royal London). The policies transferred to Royal London on July 1, 2024, following the completion of a court-approved Part VII transfer and related balances derecognized from Aegon UK’s Statement of Financial Position.
Competition
In the workplace platform market, Aegon UK provides employee benefits, engagement, and scheme governance. Competitors include Aviva, Legal & General, and Willis Towers Watson.
In the adviser platform market, Aegon UK aims to become the ‘primary platform’ for intermediaries. Competitors include Aviva, Quilter, and Abrdn.
Regulation and supervision
All relevant Aegon UK companies based in the United Kingdom are either authorized by the Prudential Regulation Authority (PRA) and regulated by the PRA and the Financial Conduct Authority (FCA), or authorized and regulated by the FCA, dependent on firm type. The PRA is responsible for the prudential regulation of deposit takers, insurers, and major investment firms.
Aegon UK is also subject to group supervision at the level of Aegon UK plc under the UK Solvency II regulations, and therefore a consolidated report for Aegon UK group is also filed annually. The Aegon Master Trust (a full-service defined-contribution pension, combining independent governance with a flexible investment capability) is subject to regulatory oversight by the pensions regulator.
Aegon UK plc uses the Aegon UK Partial Internal Model (PIM) to calculate Aegon UK’s group solvency position. The PRA approved the use of this model to calculate Aegon UK’s group solvency position, with effect from March 31, 2023, following the introduction of group supervision at the level of Aegon UK plc as a result of the United Kingdom’s exit from the European Union.
Cofunds Limited, Aegon Investment Solutions Limited, and Aegon Investments Limited apply requirements under the FCA’s Investment Firm Prudential Regime (IFPR).
Privacy regulations that impact Aegon UK currently are the UK General Data Protection Regulation (UK GDPR), Data Protection Act 2018, and Privacy and Electronic Communications Regulations (PECR).
International
Aegon International includes partnerships in Spain & Portugal, China, and Brazil, as well as its high-net-worth (HNW) life insurance company Transamerica Life Bermuda (TLB), and some smaller ventures in Asia.
Aegon’s presence in the Spanish insurance market dates back to 1980. The activities in Spain (and Portugal) have developed largely through distribution partnerships with Spanish banks, Banco Santander S.A.
Operations in Asia were established in 2003, starting with a joint venture in China. Transamerica Life Bermuda (TLB) was established and incorporated in Hamilton, Bermuda in 2005. Its full-service branches in Hong Kong and Singapore were established in 2006.
In 2009, Aegon formed a joint venture with the local traditional group Mongeral in Brazil, which was founded in 1835. The company’s economic interest includes voting common shares in MAG Seguros, which offers individual protection solutions. Together with Bancoob, MAG Seguros also operates a joint venture company dedicated to providing life insurance and pension products within Sicoob, Brazil’s largest cooperative financial system.
While Aegon had a life insurance partnership in India, in July 2023, Aegon announced the sale of 56% of the stake in its associate Aegon Life Insurance Company to Bandhan Financial Holdings Limited. The transaction was completed in February 2024.
The key lines of business within Aegon International are China, Brazil, Spain & Portugal, and TLB. The remaining business units are grouped in one category called ‘Others’ for reporting purposes. The corresponding joint ventures (including Aegon’s ownership percentages, where relevant) are as follows:
Spain & Portugal: Aegon España S.A.U. de Seguros y Reaseguros (Aegon España Insurance and Reinsurance); Santander Generales Seguros y Reaseguros S.A. (Santander General Insurance and Reinsurance) (51%); Santander Vida Seguros y Reaseguros S.A. (Santander Life Insurance and Reinsurance) (51%); Aegon Santander Portugal Não Vida-Companhia de Seguros S.A. (Aegon Santander Portugal Non-Life Insurance Co.) (51%); and Aegon Santander Portugal Vida-Companhia de Seguros de Vida S.A. (Aegon Santander Portugal Life Insurance Co.) (51%).
China: Aegon THTF Life Insurance Co., Ltd. (50%) in China.
Brazil: Mongeral Aegon Seguros e Previdência S.A. (59.2% and 50% voting rights); and Sicoob Seguradora de Vida e Previdência S.A. (29.6%).
TLB: Transamerica Life (Bermuda) Ltd.
Other subsidiaries: Aegon Insights Ltd.; Transamerica Direct Marketing Asia Pacific Pty Ltd.; Aegon Insights Australia Pty Ltd.; and Transamerica Insurance Marketing Asia Pacific Pty Ltd.
Overview of sales and distribution channels
Aegon International distributes its products directly to consumers (online and/or physical branches) and via banks, brokers, (tied) agents, and other digital/e-commerce partners.
The sales and distribution channel mix varies per country, reflecting the differences in the local insurance markets.
Spain & Portugal
In Spain & Portugal, the life insurance and health products are sold by Santander Life Insurance and Reinsurance, whereas the non-life insurance (accident, home, unemployment, disability, critical illness dependency, and funeral) products are sold by Santander General Insurance and Reinsurance Company.
Aegon España’s own distribution channel offers life and health products. The network of brokers and agents accounts for approximately 80% of the total sales of the fully owned subsidiary, and the remaining 20% is generated by the direct channel.
China: Aegon THTF
Aegon operates in China through a joint venture with Tongfang Co. Ltd., Aegon THTF Life Insurance Co., Ltd. (hereafter: Aegon THTF). The joint venture is licensed to sell life insurance, annuity, accident, and health products in China. Since 2003, the company has expanded its network of branches, primarily in the coastal provinces of Eastern China. It has access to a potential market of approximately 700 million people.
Aegon THTF follows a multi-channel distribution strategy, including agents, brokers, banks, group sales, and digital e-commerce platforms.
Brazil: MAG Group
In Brazil, the joint venture has two major insurance companies generating revenue streams, MAG Seguros and Sicoob Seguradora. Together, they have 6.9 million clients in 2024. More than half of MAG Seguro’s annual new premium is sold by home-recruited individual brokers and market life insurance specialists, hosted in a proprietary environment called Sales Rooms. The independent investment agents are the second-largest distribution model, selling mostly term and whole life policies. The rest is spread among individual and/or group life products distributed through large brokerage firms, digital direct sales, and partners/cooperatives, including affinities and credit life in B2B2C models. Sicoob Seguradora distributes individual, group, and credit life protection products in a bancassurance model through affiliate agencies to its cooperative associates. The joint venture also has an asset management company called MAG Asset Management, created in 2013, managing both group and third parties’ investments.
TLB and Aegon Insights
TLB distributes its life insurance products to HNW customers globally through targeted distribution relationships with selected local and international brokers, financial advisors, and via bancassurance channels. With its singular focus on the HNW segment, TLB has extensive experience in handling large sums assured and complex cases supporting HNW customers’ legacy and business planning needs. Aegon Insights is a marketing, distribution, and administration services business operating in Asia Pacific. With changes in consumer preferences, in 2017, Aegon made the strategic decision to discontinue Aegon Insights and put it in run-off. In 2023, it sold its Japanese and Hong Kong operations while continuing to provide services to the existing customer base in Australia.
Overview of business lines
Aegon International focuses on serving retail customers with individual life and different types of general, accident, and health insurances.
Life insurance, savings, and protection
Spain & Portugal’s life insurance business comprises life savings and individual and group protection products, where individual life-risk and health products form the larger part of the business. Customers’ savings needs are serviced by Aegon España through its affiliates, offering universal life and unit-linked products. The protection business, pursued both in Spain & Portugal, includes primarily life, health, accident, and disability cover distributed through the joint ventures and Aegon España’s own channels. These products can typically be complemented with critical illness, income protection, and other riders.
In Asia, Aegon provides a broad range of life insurance products, including universal life and traditional life products.
TLB offers a diversified suite of life and savings solutions globally tailored for HNW personal and business protection, as well as wealth accumulation potential.
In China, participating products are the key products being sold, while whole life products and whole life critical illness products are also offered for many channels, such as agents, banks, and brokers. The digital channel currently focuses on offering protection products, such as term life and endowment.
In Brazil, new business for MAG Seguros includes individual life-risk and individual life-savings products. The greater part of them are whole life or yearly renewable policies without cash value, with riders, such as temporary disability, critical illness, surgeries, or home services. Sicoob Seguradora sells individual and credit life policies. Both companies offer group life solutions for corporate markets.
Health insurance
Health insurance is primarily offered as riders on life insurance policies in Spain & Portugal and China, and as standalone health insurance in Spain and China.
In Spain, health insurance is offered through Aegon’s own channels and through Santander’s branches. Aegon collaborates with medical partners across the country. In Portugal, it is also offered through Santander Totta’s distribution network.
Aegon THTF offers various kinds of health insurance, such as short-term medical insurance, mainly through agents, brokers, and group channels.
In Brazil, MAG Seguros does not sell pure health insurance, although it sells health-related coverages (e.g., critical illness, surgeries, and temporary disability) due to the decreasing affordability of private health in the Brazilian system, and the burden of public health. These coverages are bundled with life coverages and sold under the so-called Invida product line.
Pensions
In Brazil, the joint venture operates pensions throughout several strategies. It partners with existing pension funds and offers embedded life and disabilities insurance within the pension funds’ new enrollee application form. MAG Seguros has upheld leadership in this segment for over 20 years.
General insurance
Aegon España has been offering general insurance products, mainly household protection, unemployment, accident, dependency, and funeral insurance, since 2013 through its joint ventures with Banco Santander.
In Brazil, MAG Seguros launched in 2022 a new general insurance company called Simple2U under Brazil’s regulator’s sandbox. The startup offers a fully digital on-demand portfolio of home insurance and other items, primarily through B2B2C distribution partnerships. In 2023, the joint venture launched a new company called MAG Capitalização, which offers saving products with lottery features, either as riders of MAG Seguros portfolio or as embedded solutions on business partnerships.
Competition
Spain & Portugal
Key competitors for Aegon’s joint ventures with Banco Santander in Spain & Portugal are large traditional insurance companies.
TLB
TLB’s competitors have mainly been other global life insurance providers, such as Manulife Bermuda and Sun Life Bermuda. The local subsidiaries of both Sun Life and Manulife, in addition to domestic insurers, such as AIA, HSBC, Great Eastern, Singapore Life, AXA, and FWD, have also been developing competitive offerings for the HNW market segment.
Regulation and supervision
China
Aegon-THTF is supervised by the National Financial Regulatory Administration (NFRA).
Brazil
Considering this portfolio of operations, the state supervision and oversight of Aegon’s companies is conducted by the following bodies and institutions: Private Insurance Superintendence (SUSEP) (Insurance and Open Private Pension); National Superintendence of Complementary Pensions (PREVIC) (Pension Funds); The Brazilian Central Bank (BACEN) (Collection); and Securities and Exchange Commission (CVM) (Asset Management).
TLB
TLB is incorporated in Bermuda and regulated by the Bermuda Monetary Authority, the regulator of the financial services sector in Bermuda. TLB has full-service branches that are registered and licensed in Hong Kong and Singapore, respectively. The insurance industry is regulated in Hong Kong by the Hong Kong Insurance Authority (HKIA) and in Singapore by the Monetary Authority of Singapore (MAS).
Solvency
Aegon’s EU-domiciled entities in Spain & Portugal use the Solvency II Standard Formula to calculate the solvency position of their insurance activities.
Aegon Asset Management
Aegon Asset Management (Aegon AM) is an active global investor. Its 385 investment professionals managed and advised on assets of EUR 332 billion as of December 31, 2024, for a global client base of corporate and public pension funds, insurance companies, banks, wealth managers, family offices, and foundations.
Organizational structure
Aegon AM provides investment management expertise to institutional and private investors around the world. Its main office locations are in the United States, the Netherlands, and the United Kingdom, while also having offices in Hong Kong, Germany, Spain, and Hungary. Its investment capabilities are focused around four Global Platforms, each with asset-class expertise: private and public fixed income, real assets, private and public equities, and multi-asset & solutions. Across these platforms, the investment teams are organized globally, and there is a common belief in fundamental, research-driven active management, underpinned by a focus on risk management and a strong commitment to responsible investing. Further to these investment platforms, Aegon AM also operates a fiduciary and multi-manager business in the Netherlands.
Aegon AM holds two key strategic partnerships: In China, Aegon AM owns 49% of Aegon Industrial Fund Management Company (AIFMC), a Shanghai-based fund management company that offers mutual funds, segregated accounts, and advisory services; and in France, Aegon AM owns 25% of La Banque Postale Asset Management (LBP AM), which was expanded in 2023 with the acquisition of La Financière de l’Echiquier (LFDE), a French equity investment platform. LBP AM offers a comprehensive range of investment strategies to institutional clients and to retail investors.
In 2024, Aegon AM further executed the exclusive long-term partnership deal with a.s.r. and took over as fund manager for all the funds in scope of the partnership, thereby taking full regulatory responsibility.
Following the acquisition of NIBC Bank’s European Collateralized Loan Obligation (North Westerly) in 2023, Aegon AM closed a first European CLO of EUR 400 million on July 8, 2024, and a second EUR 400 million CLO on December 21, 2024. With these CLOs, Aegon AM is on its way to establish itself as a leading European CLO manager. Aegon AM has already been a tier 1, highly respected CLO manager in the US for many years, and with the European platform, now has a truly global CLO business.
In 2024, LBP AM started to delegate to Aegon AM a number of Fixed Income mandates of EUR 1.6 billion in total, which will be managed by the portfolio management team in The Hague. This collaboration strengthens the partnership Aegon AM has with LBP AM.
Aegon AM has a global operational management board. The strategic direction and global oversight of business performance are executed by this global board, whose members have both global and local roles and responsibilities. This board is supported by several sub-committees. Members of the board are appointed by the company, which supports Aegon’s oversight of Aegon AM.
Overview of sales and distribution channels
Aegon AM uses both institutional and wholesale distribution channels, combining a global perspective with a focus on local relationships in the Americas and Europe. Client types include banks, pension funds, insurance companies, fiduciary managers, and Outsourced Chief Investment Officers (OCIOs), family offices, investment consultants, wealth managers, charities, foundations, and endowments, third-party investment platforms, as well as its affiliated companies and joint ventures.
Overview of business lines
Aegon AM has three distinct business lines:
Third-party business, which includes Assets under Management (AuM) of the strategic partnerships, accounts for approximately 67% of its AuM as of December 31, 2024. The wholesale channel typically sells collective investment vehicles to customers through wholesale distributors and independent intermediaries. The asset classes are fixed income, equities, real assets, and multi-asset solutions, with fund performance usually measured against a benchmark or peer group. The institutional business typically sells its services to large insurance companies, fiduciary managers, OCIOs, and pension funds. Aegon AM manages a full range of asset classes and manages the strategies against objectives, targets, and risk profiles agreed with clients. It offers both absolute and relative return products. In the Netherlands, Aegon AM is a leading player in the fiduciary business.
Affiliates also source third-party business in areas where Aegon AM manages funds for Aegon insurers and retirement companies (approximately 12% of AuM). These funds have various legal structures, and performance is usually measured against a benchmark or peer group. The main asset classes include fixed income, equities, real estate, and multi-asset.
The Aegon and Transamerica general accounts are the third source of assets (approximately 21% of AuM). This consists of funds held on the balance sheet of Aegon’s insurance companies to back policyholder liabilities, typically when the insurer has given the policyholder a guarantee. These assets are managed to match the insurers’ liabilities. As a rule, general account assets are managed in a closed architecture structure, and the main asset classes are fixed income and real assets.
Aegon AM has decided to further simplify its activities in Global Platforms to improve efficiency and profitability. Focus lies on three priorities: growth in real assets and alternative fixed income assets, being a recognized leader in responsible investing, and helping partners with its core offerings to build market-leading retirement and insurance platforms. As a result, Aegon AM will continue to rationalize its product set and has taken cost reduction measures.
Competition
In mainland China, AIFMC focuses on Chinese equity, fixed income, multi-asset, and money market strategies. It competes against a wide range of locally based asset managers, including China Universal Asset Management, E Fund Management, Fullgoal Fund Management, and Yinhua Fund Management.
Regulation and supervision
Aegon AM’s local operating entities are regulated by their local regulators, most notably the Dutch Authority for the Financial Markets (AFM) (conduct of business supervision) and the DNB (prudential supervision) for Dutch-based entities, the Financial Conduct Authority (FCA) for Aegon Asset Management UK plc, and the Securities & Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for the US-based entities. Aegon Asset Management UK is also regulated by the SEC for its activities in the US market. From a regulatory perspective, the asset management activities of the US-based entities of Aegon AM in the United States do not fall directly under the responsibility of Aegon Asset Management Holding B.V., as these entities are subsidiaries of Transamerica Corporation. AIFMC is regulated as a Chinese fund management company by the Chinese Securities Regulatory Commission (CSRC), while LBP AM is an asset management company licensed by the French Financial Markets Authority (AMF).
History
Aegon Ltd. was founded in 1844.
