AEG

Relocation Decision: Aegon NV, a Dutch life insurance company, plans to move its head office and legal seat to the U.S. to become a significant American life insurance and retirement group, with the transition expected to be completed by January 1, 2028.

Company Rebranding: Following the relocation, Aegon Ltd. will be renamed Transamerica Inc., while its business units will retain their current brands, and shares will continue to be listed on Euronext and NYSE.

Financial Goals and Costs: The transition will incur an estimated one-time cost of EUR 350 million, and Aegon aims for a EUR 400 million share repurchase program starting in January 2026, alongside projected operating result growth of around 5% per annum.

Reporting Changes: Aegon plans to report under U.S. GAAP for the first time with its full-year 2027 results and anticipates dividend growth of over 5% per annum starting from around EUR 0.40 per share in 2025.

Stock Performance: Aegon's shares have increased by 7% in the past month and nearly 20% this year, reflecting a positive sentiment among investors and a total return of 21% over the past year.

Growth Outlook: The company's expansion in the U.S. retirement and insurance markets, which now make up 70% of its operations, positions Aegon to benefit from demographic trends and increased demand for retirement solutions.

Valuation Insights: Aegon's fair value has been raised to €7.36, indicating it is currently undervalued at a closing price of €6.95, with optimism about future growth driven by higher margin projections and changes in earnings power.

Risks and Considerations: Potential risks include prolonged low interest rates and operational challenges during the U.S. transition, which could negatively impact Aegon's margins and future earnings growth.