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Aegon Anticipates Increased Free Cash Flow and Dividend for 2025

Dutch insurer Aegon (NYSE:AEG) has unveiled its optimistic outlook for 2025, projecting substantial growth in free cash flow as part of its strategic focus on streamlining its corporate structure while pursuing investments in more daring ventures.

According to the company’s announcement, Aegon anticipates a noteworthy surge in free cash flow, reaching approximately 800 million euros ($878.96 million) by 2025. This is a significant increase from their projected figure of 600 million euros for 2023.

Moreover, Aegon foresees a favorable upturn in its dividend per share, with expectations rising from around 0.30 euros in 2023 to approximately 0.40 euros in 2025.

To achieve these promising targets, Aegon is taking steps to simplify its corporate structure while concurrently allocating resources to higher-risk assets that have the potential to yield superior returns.

In line with its strategic initiatives, Aegon is in the process of divesting its Dutch operations to ASR, a smaller competitor, through a cash and shares transaction valued at around 4.9 billion euros. Upon completion, Aegon will hold a 30% stake in ASR.

Assuring stakeholders, the company affirmed that the transaction is expected to conclude in the upcoming weeks, solidifying the execution of its strategic plans.

While Aegon’s primary market remains the United States, the company aims to capitalize on the expanding insurance sector in the region through its subsidiary, Transamerica.

Transamerica intends to reinvest a portion of its earnings from Strategic Assets into profitable new ventures, thus securing long-term growth, as outlined in the company’s official statement.

Furthermore, Aegon disclosed its intention to make crucial talent management decisions and introduced a fresh corporate logo, underscoring its commitment to evolution and progress.

(Note: $1 = 0.9102 euros)

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