Aegon has set new medium-term financial targets for 2019-2021 with a focus on growing capital generation and dividends.
Capital generation of EUR 4.1 billion cumulatively; excluding market impacts and one-time items, and after holding funding and operating expenses.
Dividend pay-out to shareholders between 45% and 55% of capital generation.1)
Return on shareholders' equity
Return on shareholders' equity of more than 10% on an annual basis.
The current capital framework and related target ranges remain unchanged for the years 2019-2021:
- The Solvency II ratio target range remains at 150% to 200%; the 2018 Solvency II ratio amounted to 211%
- Holding excess cash to remain in target zone of EUR 1.0 to 1.5 billion; year-end 2018 level was EUR 1.3 billion
- Gross financial leverage ratio targeted to be between 26% and 30%; year-end 2018 level was 29.2%
- Maintain a capitalization required for a financial strength AA- rating
Read more in the press release on the new medium term financial targets (February 14, 2019)
1 Assuming markets move in line with management's best estimate, no material regulatory changes and no material one-time items other than already announced restructuring programs.