Aegon H2 Operating Profit Up 11% to EUR 858M, Launches EUR 400M Buyback
Aegon's second-half operating profit rose 11% year-over-year to EUR 858 million, while free cash flow reached EUR 388 million and full-year 2025 free cash flow met its EUR 829 million target. The insurer proposed a final dividend of EUR 0.21 per share (full-year EUR 0.40, +14%) and executed EUR 400 million in H2 buybacks, launching another EUR 400 million program for 2026.
1. Non-operating Items and Capital Position
In H2 2025 Aegon recorded realized losses on assets transferred in the SGUL reinsurance transaction that were fully offset in other comprehensive income. Net impairments reflected an expected credit loss reserve increase and a small number of bond downgrades and defaults, while cash capital at the holding declined to EUR 1.3 billion mainly due to dividends and buybacks.
2. Solvency and Equity Metrics
Valuation equity per share increased by EUR 0.60, gross financial leverage remained stable at EUR 4.9 billion, and the group solvency ratio stood at 184%. Perpetual cumulative subordinated bonds contributed seven percentage points to the ratio until their eligibility ended on January 1, 2026.
3. Operating Results and Free Cash Flow
Second-half operating results grew 11% year-over-year to EUR 858 million with contributions from all business units and an 8% rise in operating capital generation. Free cash flow for H2 reached EUR 388 million, bringing full-year 2025 free cash flow to EUR 829 million, in line with the company’s target.
4. Dividends and Share Buybacks
Management proposed a final dividend of EUR 0.21 per common share, raising the full-year payout to EUR 0.40 per share, a 14% increase. The company executed EUR 400 million of share buybacks in H2 2025 and initiated a new EUR 400 million repurchase program for the first half of 2026.