Aegon N.V. (NYSE:AEG) Q3 2022 Earnings Call Transcript

Steven Haywood: Yes. Thanks very much.

Operator: Thank you for your question. We are now taking our last question is from the line of Nasib Ahmed from UBS.

Nasib Ahmed: Good morning. Thanks for the questions. Just two for me. First one a clarification on the TLB transaction. Again just looking at that transaction the reinsurance transaction in isolation you’ve released €600 million of capital but wouldn’t that capital be coming off TLB over time anyway? So you’re saying your OCG net-net is zero if it’s left pocket right pocket? But you really — so when I think about retro transaction is kind of an acceleration of your capital generation. So just wondering at the group level what’s going on? Why is there no impact — negative impact on OCG? Maybe it’s the new business. I don’t think you’re run of businesses here. So if you can just clarify that. And then second point on sort of the debt caring impact on the group solvency number. Is that driven by higher interest rates? And do you expect that to kind of come back over the next quarter? Thanks.

Lard Friese: So Matt can you take both?

Matt Rider: Yes. So on the TLB reinsurance deals so what I said is that the operating capital generation there’s sort of a flip between TLB and TLA for the US business 30-30. However, the reinsurance transaction does allow us potentially to increase the level of remittances. So it creates, let’s say, free cash flow more quickly than if we had left the business sitting in effectively and reviewed. So from that standpoint that’s why the transaction is appealing to us. That’s what we do with financial assets we try to accelerate the release of capital and that’s what this — the reinsurance transaction will do. On the debt tiering, we have seen the SCR come down from interest rates coming up and also through management actions.

We’ve also seen that we have seen some DTA limitations in both the US and in the Netherlands. But that’s — it’s sort of a regulatory issue with respect to recognizing DTAs and available capital. So we still have those DTAs. We can recapture those from the various tax authorities, but that’s the limitation that we’re reflecting at this point. But it’s sort of a non-economic thing. Those ETAs are recoverable over time.

Nasib Ahmed: Thank you, guys.

Operator: Thank you for your question. We have no further questions and I will now turn the call back over to Jan Willem Weidema for closing remarks.

Jan Willem Weidema: Thank you operator and once more apologies to everyone for the technical issues you have encountered. We conclude today’s presentation and the Q&A session on behalf of Lard, Matt, Duncan and myself I want to thank you for the interaction. If you have any remaining questions then please reach us to us at Investor Relations and we’re happy to tell you. Have a good day and thank you for participating in the call.