AM Best Affirms Excellent A and a+ Ratings for Aegon USA Subsidiaries
AM Best has affirmed an A (Excellent) Financial Strength Rating and a+ Long-Term Issuer Credit Rating for Aegon USA’s subsidiaries, highlighting very strong balance sheet strength and double-digit return on equity. Aegon Ltd plans to re-domicile its head office to the United States by 2028 and rebrand as Transamerica Inc.
1. Rating Affirmation and Outlook
AM Best affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of a+ (Excellent) for Aegon USA’s life and health subsidiaries, maintaining a stable outlook. The affirmation underscores confidence in the group’s enterprise risk management and consistent credit metrics.
2. Balance Sheet and Capital Strength
The ratings reflect a very strong balance sheet, with strong to very strong risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio, plus substantial liquidity from Federal Home Loan Bank membership and capital market access. Asset allocations remain typical for the industry, with declining exposure to higher risk assets.
3. Operating Performance and Earnings
Aegon USA has delivered positive pretax operating earnings over the long term with double-digit return on equity and diversified revenue across life, annuities, mutual funds and health insurance. Top-line premiums rose in 2024 and held steady through the first three quarters of 2025.
4. Strategic Re-domiciliation and Branding
Aegon Ltd plans to relocate its head office and legal seat to the United States by 2028, renaming itself Transamerica Inc. following re-domiciliation, and will concentrate resources on building a leading U.S. life insurance and retirement company.