Aegon (AEG) 13 Aug 212021 Q2 Earnings call transcript

Good day, and welcome to the Aegon Second Quarter 2021 Results Conference Call for Analysts and Investors. Today's conference is being recorded. At this time, I would like to turn the conference over to Jan Weidema, Head of Investor Relations. Please go ahead, sir.

Thank you, Stewart. thank quarter joining XXXX and on conference everyone, second Aegon's results. morning, you this for call Good

You would which Matt appreciate With Chief moment at to Transformation it back me if you our the Russell; CEO, on could today disclaimer Officer, are forward-looking Lard the Duncan Rider. statements, of you Aegon find review can presentation. take Friese; a CFO, and

over hand now to me Lard. Let

We forward appreciate today's Thanks, updating that through are will through Jan morning, we made and Willem, second on look and take the highlights joining my the have our call on on everyone. and In part to good you us you results. strategic presentation, our strategic progress you quarter the of I assets.

will are actions Russell, our annuity results through Our capital go U.S. will variable the Officer, take taking and our the Chief we Matt Rider through and position. business, then Duncan the on of you details Transformation

conclude presentation which I Finally, wrap-up, for open the after will we the Q&A call will a session. with a

to So let's X. Slide move

supported steady We recovery I'm in results. our and and targets, this financial see vaccination to encouraged second on have increased rates by quarter results. our progress aided strategic Economic priorities made our reflected

increase an United States. higher all increased the fees claim in the The equity of experience of XXXX due markets by expense second quarter saw operating across to driven result in segments savings, and normalization

and have X-year strengthens million ability the €XXX our good made through of our on our a on savings the seen savings. have deliver the in progress program reduction of to confidence We This expense addressable €XXX in implementation million quarter. second expenses target annual expense

ratios above respective remains operating their units X sheet main all strong, of Our with levels. the capital balance currently

favorable enhancing growth during initiatives compared equity These that predictability double-digit and interest Furthermore, we policies. to By variable certain their the products, customer annuity rate return in annuity managing are surrendering made dynamically distribution for other legacy two alternatives hedge increases strategic Life, the our introducing we the in asset of for in strong service, will offers category. by workplace launched We and of capital doubled believe new a expanding driving at releasing business We the steady plan middle-market in innovative remaining assets growth capital the create have a customers another in quarter generates. and variable portfolio and lump We terms to payment program our that business. net second retirement sum financial in our we quarter. value progress U.S. risks. the achieved U.S. deposits sales almost delivered sales plans U.K. are

record making strong net both track both our owned ESG units of our partners executed balance mortgages record another the in provides positive target. new growth our wholly financial and strength continued housing our Therefore, and Management style-defined United assets States. to contribution In also with of United our demand announcing interest actions also administration improve XXXX. share. serve our and we by deleveraging Asset share achieving deposits, allows and common are step progress priorities targets our the interim affordable continued our path having risk of the common local to the our levels its €X.XX an The States with us joint helped We Asset our accelerate per of in high have Chinese per continues. as strong €X.XX under increase to investments sheet Netherlands communities. today business workforce the by take in €X.XX to around and to its our our portfolio, Aegon increase in We've administration confidence under continued momentum dividend in in profile, in pensions. pay to third-party to for already towards X/X Furthermore, growth on fund dividends rate Aegon reduce in better of us Management around are risk venture our solutions, planned to on strategic the management we

announcing capital quarter. securities professional redemption therefore the the USD of XXX are We million third in

Let you on an where X. with we me now give our the of operating overview execution stand plan of Slide

ambitious Our reducing margins our to X,XXX than comprises performance plan designed growing more detailed by operating and expanding improve profitably. initiatives costs,

pace of are ability That million reduction the €XXX service, years confidence on the contributed These We to been expense as than in the execution implemented, deliver half of to second continue quarter XXX target. This have our organizational million XX% beyond. in contribute quarter, been that result the experience and delivered new bringing completed rhythm products another intend year which the in the of €XX already launching quarter. of customer fully and the €XXX throughout that, all successful underway. the in also growth and rapid initiatives million intense over initiatives to rhythm savings the we $XXX to second initiatives savings, more have XXXX. and rapid pace We will second We've and strengthens operating continued the throughout Initiatives innovative operating million. have enhancing XXXX. total over our aimed have our to they means the is now initiatives of at result improving for remainder Expense doing well of target time.

to respect turn to the our we assets. progress to with made X Slide Let's strategic discuss have

years. momentum the the have margins. to we expand In selected is products Individual regain priority number XX% X of U.S. the the here the with compared new base the Group Our Solutions, and in ambition our to top position quarter, Financial sales. licensed of XX% World the over customer coming in grow last second life In a commercial increased improving quarter life resulted increase agents by year. second in

quarter's sales player a in more sales. the made types the addition quarter build consecutive value were represent strategic share this billion new Sales product in Volume lower resulted the continued of increased a application than wins, written of of second more in The business. market supported increase consecutive doubled X/X these net aims a by of and arrangements whole USD deposits. with to to and new following plan the sales the Transamerica, and positive business the of market planning X arrangement a both quarter new This top which fourth contract process. from more sales. retirement business, favorable in are the growth, a over pooled sales market our middle expenses growth Written expanded now U.S. to Furthermore, XX% channel products distribution as driver. this middle than X mix of momentum, also compete and funeral XX%, final benefit. We through expense life by of enhancements

strategic So let's the turn Dutch to on Slide X. assets

administration origination the style benefiting are our defined and a contribution second mortgages style a momentum of deposits we Mortgages the quarter. second billion under reached continued record market. contribution defined in a billion. business, market and mortgage housing pensions, quarter increase a Workplace in €XX for from In We €X.X net our strong saw leader in products. We in new high new XX% both we originated

In develop business for is first in under market. mark surpassing want position Knab, growth XXX by the first gateway administration €X to this billion favorable online reached Aegon's United the individual Knab and continued movements. driven assets more than digital scoring for billion net the time a GBP its solutions. and Assets this Kingdom, added bank, X,XXX into leading the retirement for for and trajectory under time We customers market quarter. the management deposits this in

the further traditional mitigate By helped gradual driver is significant channels, Market In which growing retail included win. net of Our to the these a business. schemes. aim we the have of our well platform improve savings movements GBP platform the deposits underscores aim from to the revenues positioned which deposits channels efficiency and multiemployer impact in platform. we this is taking runoff expense of workplace fast-growing of contract the the quarter. annualized to we X lost Trust the to for Master out and the grow the This portfolio, behind net market that in and doubled business expenses, pension the are billion, from

let the asset improving margin the our X. growth. Global to markets Slide and Asset efficiency by we business Management Platforms our growth business, management global operating So In our driving of aim increase significantly turn me and on to

These This resulted significant revenues Real operating margin The on were Platforms billion deposits housing. higher Global and from driven Net points. net higher platform. by various increased €X.X Platforms were the developments in and in deposits, fees origination by market origination in deposits workforce investment favorable income Global and growth performance the net to driven of business Increased partnerships responsible Third-party venture to quarter strategic Portugal. In mandates fees the in of increase operating driven to Aegon's X €XX fixed business. were fees in markets, in investing business the percentage higher continue Assets affordable value Spain by profitable €XXX fees nearly growth. deposits growth strategies from Aegon's by management driven significant joint China. sales new the of from by led and from Brazil, X% increased for result life in new and million. mainly sales business The our strategic partnerships invest a the we for by in million net

and launched premium as million casualty and Portugal. for in increased result product production New health of Spain and insurance accident new property and €XX a to

distribution. to the making digital the Here, we assets. growing supported actions our of are These in are sales channels channels the of benefiting through from summary, Slide In in insurance from our Spanish production strategic on accelerate sales digital the bancassurance the total the progress XX% and over partners to redesign digital steady June. transformation X, of doubling sales

hand would We the this, businesses. products will about same investing will talk over to and in various actions continue taken to it I we've regarding at to our time efficiencies the with services like And while our Travel core business. Annuity who to drive U.S. in Duncan, the customers

you. to over Duncan, So

announcing derisking focused unilateral on are risk identifying Markets like total with businesses. laid our from in we financial to are we would we actions two you, can Lard. accelerating, by to our our stakeholders. business of today maximize the billion approach the blocks take now we Day, of which actions, The USD implementing the debt Capital I Variable At steps our assets. benefit aimed demonstrate out have financial block Annuity other highlight ourselves income steps these actions and our to can These or exposure conjunction intention To and that and in flow actions, recent value our reducing that increasing assets at the with of taken our Thank of we value. cash legacy account on resources have business, to managing had riders. X XX take date, bilateral actions we

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mitigate upon of improve business. XXX We will basis, to noncash XXXX, present XXX net these first charge million continue in a USD to a the the USD pretax deferred quarter value the on reserves risk clear But we to this legacy exposures One these. liabilities X statutory reserves, guarantees that embedded we to guarantees implication to aligning interest our also block have away decided grading approximately of mostly expected write-off actions onetime IFRS of to driven to an by provided are explore to around the in of ways shareholders economic X% management Aegon of and basis acquisition that over be result other effectively On financial of in why will interest equity the move what long-term prescribed million On by rate cost. rate XX, rate I subject rate product. simplifies Therefore, our Slide interest embedded sensitivity the of the regulatory a have inherently guarantees view remain value the for hedging. will touch the value be a immunized mean to on want and want not of on this changes going move from and and assumption. in interest the we be will our policyholders the fair simply, the risk the to decision-making I is time, and an hedge basis. Put will not, forward. of position capital dynamic the to economic position business our in will that hedging

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presentation up part wrap me Slide Let of XX. on my the

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potential as in more to our be and financial and understand on and how unilateral around to options of solutions. continue ways to consideration This variable for internal impact initiatives. intend the can third-party we to seek to of bilateral control, value this. the will additional we our the or from financial our aim topic But we maximize transparent include value will those allocate now quantify more actions, our this easily additional assets. We resources can create are investigate We

the provide like So With XXXX. that, on to I'd an we update hand half will progress sometime in of to Matt. our first over

and everyone. Duncan, good morning, Thanks,

the position. second and next you our pages, will results On quarter the several XXXX through of capital I highlights on our take

the with the the U.S. and quarter financials of on in €XXX our markets to Expense operating start XX% me increased higher claims XX. by of Let equity from savings, a drove ago normalization the experience Slide year from result fees million. increase

range operating XXX%. firmly units half us X holding allows billion. operating Our balance on of sheet Solvency the positions execute stood our the the II at leverage, at capital to This €X.X Cash all transformation at strong, as gross at group second with well is to the respective end in reduce capital ratio further financial flexibility €X.X billion at remains the the and main their above continue quarter. the our the which of of our levels upper to as

One of in of priorities economic our our is the rate interest business. U.S. exposure reduction

Duncan, we This by As plan. forward our to have starting the swap asset the of about and executed involved program. primarily on portfolio our our extending actions interest discussed reduction lengthening rate of X/X duration

proactively worth million is already that of priority managing obtained our In share XX USD means the approval to total USD $XXX target. we for portfolio. increases second brings have additional we achieved XXX rate XX% over million our Another and quarter, the long-term million. This

expense the by are reduced expenses driven to €XXX on compared addressable expenses by addressable XX Day, million Markets initiatives turn quarters, Let improvement we X €XXX €XXX into our expense announced our as operational XXXX. we of Capital the million. part of our In plan. Slide these with million last to savings. by more reduce savings plan At me to detail go the

lower in delivered the COVID-XX this activities to Expenses expense of benefited have on execute to already due are to and plan pandemic. impact satisfied quarter continuing are travel and the the this again of marketing from half target. reduction We

time. we enhancing We service, expect grow aim and innovative our reverse user these over to experience by benefits launching products. to profitably business Furthermore, customer improving new

million in second in the the quarter contributed €XX While the expenses operating result to in X that initiatives quarters, of these resulted growth last XXXX. €XX of million

to you quarter of share same me results. operating with behind most drivers the million, In XX% XX the an our compared in second of operating to to €XXX turn Let XXXX, increase Slide period increase the year. our to the amounted last result important

from and €X operating management morbidity the of reclassification experience ratio offset equity to elevated COVID-XX from last businesses million. in mainly to of fact, corporate by a the quarter the when increased and €XX lower the expenses, a constant our In In This for apples-to-apples the income. the in result terminations to increased higher margins In reserve long-term lower million the the year. business. Netherlands saw result Central release. supported U.S. Correcting of bonds €XX million for expectations, to the the which earnings. is largely fee claims U.K., of mortality significant was in this significant actual to fee-based result onetime was the in revenues light of of increase XX% expected experienced book, reserve higher from growth adjusting operating our result million is claims release, to by results cause second contributed also higher attributable by was with currencies markets. by The other Europe The by adverse death. and the Eastern business, but €XX not €XX which We was claims investment XX% Platform asset favorable experience from Improved claims to mortality. benefited allocation mortality operating a higher as and by revenue international XX% expenses as growth driven care The adverse only operating at also to included relative million U.S. long-term onetime the compared improvement driven increased

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result of favorable of driven deposits The as asset asset venture. and management to because market. the result net €XX Chinese nearly Platforms operating operating joint the Global management doubled mostly million, our well from revenues Finally, higher by increased from

slide. net operating from turn Let's on results to the next results

amounted to second value contributed the €XXX by the driven Fair items million can of gain before of result Netherlands. and tax. net XXXX. €XXX estate you largely quarter million gains the Slide see real revaluations to the As in and a equity €XXX and million Americas amounted on Nonoperating were for XX, private

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the units. to capital of the now at quarter driven cash on us next the the at holding increased development slide. remittances by Cash the during capital turn Let from holding our

Some paid units half their yearly U.S. the during second including the remittance quarter,

at insurtech on flexibility growth partly half in of the addition, our Cash Life offset to financial unit. quarterly Brazil. of by Transamerica's reduce In country billion, and continue regular which were the the companies group efforts sufficient operating leverage. portfolio expenses cash holding, deducting in the capital upper of financial one minor After €XXX results funding fintech from injections at this divestment some to and from Furthermore, million the flows holding to remittance the the expect and and into of we Proceeds into quarter. operating capital received of quarter closed at free the capital we program transformation for is Dutch the provides €X.X inject range both the to execute markets, units.

our balance brings strong on claims to to we We slide €X.XX current At deployment on to strategic growth have dividend year €XX commitments. for the million This near-term dividend sheet Capital of absorb €X.XX an COVID-XX, steady trajectory. the to Markets our share. per from our business final enable adverse a Day, approximately we interim made progress to priorities my compared growth. a last capital guided will maintaining regarding increase Since me delivery financial experienced its muted contribute support while targets. then, This by with supports and

the the have Finally, leverage we will XXX to intention we billion. on financial USD reduced €X.X our financial gross gross we €X since million our us to to €X.X XXXX leverage you, the track and of pass quarter today gross continue achieve to XXXX. announced leverage, by €XXX to redeem as that, financial between back to reduce I redemption, securities. Lard. our in target capital With This After by billion reduce second approximately million puts have it to perpetual billion

from thank And and presentation Duncan. Matt. financial like making to today's you our also, priorities I you that targets. strategic would our away Thanks, take progress all on are we steady

supported operating our results by all increased have segments. We

intense operational by our improvement organizational rhythm. implementing are an are initiative initiative and plan We maintaining

target more expense million have for achieved than We €XXX savings half XXXX. of our

program. by solutions. investigate our annuities hedging variable maintaining to our allows We strategic to program buyout third-party are resources around assets. are momentum of allocate extending a us through increasing This dynamic our options commercial and also lump value sum internal portfolio we the in potential our And the

steadily indicated with the close in Vienna talks VIG work businesses constructive Group Lastly, in Central to Europe. has confident are will they to and Hungarian divestment with and is that resolved state of matter be together the our we the that in Eastern pleased the questions. Insurance to [Operator Operator, continue am strategic the Q&A. near now I the how term. your would are In call for for the targets. on today our the announced and progressing I commitments open we with open results financial and we please summary, Instructions]. like

[Operator Instructions].

The comes from question Citi. first the line Baker of from Andrew

if target. buyout expansion could first a sense and be of And to the lump-sum management capital hedge the risk also actions, the you us secondly released So then on give U.S. just the of the program. expect wondering on the the your that you dynamic, from

flow. the as exceed well as you're on looks So maybe for guidance to well and XXXX on potentially you like cash free obviously, OCG both had it track XXXX

just I just are. metrics on your So what if expectations update an those wondering was could you give on

you Andrew, questions. for much, Thank very your

be Duncan will Matt. The first and one by second by the taken one

management on risk U.S. Duncan? So actions,

Andrew. you, Thank

USD the that the will impact think And -- worse from dynamic from in positive ratio. capital a in capital the implement once back the we we and block will hedge, been billion. today a And percentage implementation around The X billion. no buyout around the small drop indicated, the we'd that, to has VA As the X point be of dynamic small hedge. expect a of block net than back the hit negative a think about program X we statutory the VA -- the RBC to within $X.X

Okay. Matt, the...

and, let's capital operating remittance say, On generation Yes. outlook. the

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the top and billion remittance this we're saying we something middle range time, -- Day. in the slope. but through guidance the on changing €X.X the not of terms than that in €X.X remittances, Capital the that at Now more had it of toward more it's looks end is At in to bottom moment like guiding XXXX like billion been more the Markets cumulatively guidance,

think I that's...

will to Paribas. Barma David from from now our next We question move

is one on measures block. come the back first The VA the on to

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David. Thanks,

And then Dutch VA the question, on So the ratio, Matt. Duncan.

So, Duncan, please, to you. over

capital financial consideration. drivers has for base of -- and philosophies the important an you're reduce around that David, volatility one one our our So And the capital assets, right, generation. the of to that's been

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please? Matt, So

Yes.

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Ashik JPMorgan. We'll our from next now take from Musaddi question

Sorry, I mute. was on

Sorry.

couple for I for are RBC ultimately, is, is numbers. for It is negative ratio. it two numbers, a negative is generation. I Just how capital you operating have questions do we actions the mean negative It taking think of financial IFRS like --

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very So forward? that good helpful. is it a is And one-offs, Or just it et run going including would cetera? for be like rate

Thanks, Ashik.

VA, the the indeed Matt will capital take on Duncan, So generation please, then and question.

and it. my I'll try break answer to Ashik, down

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Yes.

pick the can operating So I up capital generation.

second like to down toward those the thing are would down rate. about the not and maybe to Having from full another have that continued interest so were One quarter as we run some generation strongly, as come year. everybody yes, the billion good points. and bit remind a is sensitive little remainder on things the in markets, so capital decent that, in the is of the operating XX that seen driving mention especially. they points for basis the you year. sensitive the rates to of, first interest So what's guiding today on is say, basis rate I the of a movements -- quarter, for €X.X of and we But operating gen asked U.S., expected that said let's Where just the €X.X perform XX billion to cap have increase equity we're

is So start. pretty which to from good base a second quarter

and within were U.S., within the the had were from Europe. €XXX guys some of of get expenses, million after other just it you'll then to positive that other kind -- sort mortality of there couple a the combination forward, walk and tailwinds had there million, and holding €XXX funding of good gen we add one-offs. items So We operating cap morbidity back, in to of and

within operating business clean unit. quarter -- You for be come let's gen a the about for the million quarter like, down would to, same cap say, €XXX just the

and first The more the U.S. going half €XXX half that the €X.X what claims. in €XX something to space. think billion a Depending year, we do of in than Add did get is €XXX or billion last let's less million you of, half extra in in the that year, you €X.X factored little population Xx the of COVID we XX,XXX billion, to COVID then the something out €X.X called on say, to million desk, million.

could We middle You in anything a positive could of pencil into for We in the wave. didn't experience. your own second be there. morbidity number take account

€X.X the seems So be number. to billion billion €X.X to a safe

Morgan from Liang Stanley. Fulin

I got Very X questions. of set results. good

will been first asset. variable then the -- that policies So financial you Or in you to I actually just annuity policies. Well, U.S. has do kind -- you out consideration? you of fixed plan haven't mentioned you the your -- VA, because the the gained of kind your buy wondering a customers these you of the litigation have also policies. the out said, -- the I'm it value kind one, you're approaching current assume existing about under below that your regulatory kind is a have is That's with as solutions? how -- And the annuity because assess book how buy come Duncan and risk in is economic the separate on you Is one. of solution approval. annuity fixed the book together first secondly the is future? of

Yes. Thanks, Fulin.

So you. Duncan, over to

out, these sold to is in long value. opportunity strengthen as pointed terms key our the XX are in a the a ago, could And cases, period. changed circumstances customers policies over and an customers program our years So some of buyout have their were of offering we ago, of time cash I exchange products

think exchange account before to for to is as did recent attractive exchange to its over advisers how it we'll coming that that. months. out, We our since it's the feedback and early, and guarantees north or our have But in beneficial to discretion and engage that them. progresses the economic their offer constructive program slightly at for get feedback, choice, their and lower still very of had advisers also pre-engage which is we the their cash On payment, their so buyout than be obviously of they'll could side, with you us, shareholders. pointed the and we surrender it's see have on value to the launch. that feedback, policy and they So ability have value is But with launching

we'll The as with to considerations general variable could also VA. could started annuity something may was variable whether annuities, will and contribute for a financial any coming and around transaction It take in annuity The but around -- block, progress into We'll just second considerations fixed do. is quarters. the It third-party liquidity exploring yes, we've as the the have that's said, annuity on question I account and the block block. fixed together months come we that in we considerations asset. solutions

to Huttner from from We'll next Michael now question move our Berenberg.

various a the on buyout of updated at I operating trying the of what think, generation, could meaningful and the the have think I 'XX? half U.S. the but stage was regard? the what does guidance when is two rise actually, half? question to the in on And million already the What it program. in second half second do can we first 'XX see I'm see say capital to cash remittance, measures in you questions, is, And we it this in or U.S. I first say which $XXX can the

questions. the little So what what be bit the given figures would XX% figure, benefit? you've a two a if to sensitivity goes around That's it give on you XX%, that based the of Can my are assumption.

Thank you Michael. very much,

the on with start U.S. by the then question, program Let's followed question And Matt cash by remittance Duncan. Rider. your

over Matt, you. So to

Yes. there facts -- just is maybe the What say first. I that so can

They $XXX quarter second in That's first the remit in did did the quarter, U.S. €XX million their So million. the well. normal remittance. as

We outlook here. fact reflect by -- for to dividend it's a from the the the I but think changed remittances increasing our reason €X.XX for important a share U.S., haven't that are the we the

not increase that by something looks in U.S. to we're is driven a guidance range that be €X.XX you into that the operating I that detail million share within getting think But the about showing of remittance million is $XXX generation $XXX So in the the and U.S. that, capital to

Thank you. Duncan?

Yes.

RBC is we policyholders positive accept, that question, and it opts program, and as out guaranteed if slight that there releasing option capital. the out the cash ratio reserves giving in is It on uptake dynamic develop paying indicated. associated there specific early also and a that be and circumstances we characteristics, and a now Michael, and of when second We're And that, the here dynamic for required will sensitivity. are the think offer. policyholder that depends the very the how markets specific between of not which are is On

So come look if in it's details. okay for with the with them you, we'll or to back XQ XQ

a just And follow-up.

to spoken little month launched you a bit And say program you've advisers. clearly, about a more Can progress? You ago. about the said the was

Duncan?

No, in short.

constructive. which it. have We to obviously, and making been and then, around launch launch, sure you that several a on we've working part execution, So -- is have feedback lot there's we've months, for -- of you're we have right. goes been which since it, this that did One we of the feedback prior obviously as

it's in some engaged be So ways early, to early, really or Michael, very have thereby. customers

get couple So we're from not expecting until information really months more a of to now.

question And Murray from we'll last queue from take our Autonomous. Farquhar now from the

two Just if questions, may. I

end you end sensitivities how just understand here of of June circumstances? of we you a you we towards of Or variable between by versus possibly side, RBC clarify €X.X that 'XX which I gap year? on to impact. year? that just of the and capital December. cash the And target end seem to on cash impacts, are remittance for to end and at market bit think And they might based increased the kind the in for outline whether the generation of conversation the on and, range, vary talking around something actions X? between adds flow remittances, Firstly, and generation basically the just is turning there's in more kind able to then €X.X about just generation the upper year cumulative be could the the be those flow of capital about seem you annuity those where a the closing billion. you have this to secondly, so Can billion the explain And were particular, the Could

me very let So Farquhar. thank much, -- you

So cap the and on let's gen start then that, the VA after question with Duncan Matt question.

Yes.

macroeconomics far, see capital conversation been implementing say operating year, also turns good, in us. the on the out. you terms have but a both that, just is been plan, said, from more of it quite the would operational year So the we'll generation, for of favorable of the improvement how progress the so end has I the actually

we've the The we tailwinds. we about the way reduced those risk the kind Day. Capital overall Markets that kind put of downside drastically So are targets is of in the think it out that at

is work that we of the do early But to are clear, kind do. to and all in we have So encouraging. transformation, be of a lot still

outlook into want the come say credit we in be but the cycle, economic the U.S., get second example, to wave also out COVID the pandemic. and late we as that cautious could claims of we You COVID-XX we're a for markets, perhaps do if about for in

only to say end for in XXXX changing done this now to Day. XXXX Markets remittances, not So the top terms at the that the guidance that our towards remittance that guidance point at of guidance we of we've gross we're are Capital guiding

had billion. So billion that we €X.X €X.X to at

now that here. more capital like markets the But along So in progress the have we're €X.X helped us clearly, we've made thinking billion.

top end. We are the guiding towards more

much, very Matt. Thank you

Duncan? So

plus the the put equity the of some hedge respect may obviously also the that by there's tricky. circumstances. that be markets of program, ago a then influenced that from XQ. markets be on reason not buy-out impact they're And They're on a dynamic will rates. with quite which for as the fact interest by rates months guidance, in no, should based mitigation. terms a the well, could itself is we the is implementation here current and interest take-up based which apply variables bit rates on of also And partial that rates, and few to additional influenced Farquhar, several it's in equity hedges in And

to confident points fairly RBC in ratio, X -- that the on than as net indicated the extreme movement. percentage that feel presentation we barring really However, market of the be no our that I worse going is have

pretty So comfortable we that with guidance. feel

generation Just indication as as carried circumstances of a that the does follow-on, to extreme capital well? kind through

adjustment things. transferring One driven driven -- into capital lower The is generation, USD XX generation was of being by by released is the it capital a level we're effectively here. reserves capital to million X the required because mostly capital

because and will X the on rates being I impacted. markets implementation that how impact the operating from it's don't of that and required on by capital equity impact hedge range capital second be so much DB the is impacted slightly market I And get may market that fairly by percentage But equity we impacted of So generation bound. is return, points, impact as said, business, the think we meaningfully equity a the capture where market that book the circumstance. the should and no longer assume

Officer, With this, any remarks. Executive call to I for additional the like or would hand Lard back over closing to Chief Friese,

continued today's This your concludes Thanks call. is Jan Thank Aegon. interest operator. for in This you, again Willem.