Aegon rated 'buy' after strong H1 results and strategic US pivot with potential 5-10% valuation boost

Aegon is recommended as a 'buy' due to strong first-half financial results, a solid capital position, and an attractive free cash flow yield of around 9%. Its US subsidiary, Transamerica, which accounts for 70% of operations, saw significant growth in annuity, retirement, and individual life sales. Aegon's strategic shift to a US domicile, New York headquarters, and US GAAP reporting is expected to drive growth, inclusion in indexes, and a 5-10% increase in valuation. The planned sale of its UK business will free up $2 billion in capital, supporting targets of 5% earnings growth, over €700 million in free cash flow, and increased dividends and share buybacks.