Insurer Aegon boosts buyback plan, but CFO exit raises uncertainty

By Mateusz Rabiega and Aleksandra Kret

Aug 20 (Reuters) - Life insurer and asset manager Aegon increased its planned share buyback for the second half of the year on Thursday after its capital generation beat market expectations in the first half.

However, the shares fell around 3% in early Amsterdam trading after Aegon said finance chief Duncan Russell would step down and leave the company in April 2027, which analysts from J.P. Morgan said would create near-term uncertainty. The company has initiated a search for Russell's replacement.

Before Thursday's drop, the stock had gained 21% since the start of 2026, which ING Financial Markets analyst Jason Kalamboussis said was another reason for the shares to take a break.

The Dutch firm now plans to repurchase €350 million ($409 million) worth of shares in the second half, up from the previous €200 million target. Last year, it had announced a €400 million programme for the full year 2026, which disappointed investors and dragged the shares lower.

Its operating capital generation after expenses reached €416 million in the first six months of the year, beating the €376 million analysts polled by the company had expected, as its U.S.-based Transamerica business grew and buoyant markets lifted asset management revenue.

Aegon plans to seek shareholder approval in October for its proposed corporate move to the U.S., part of a broader strategy to rebrand as Transamerica and relocate its headquarters by early 2028. As part of the same plan, Aegon sold its business in Britain in April, though it kept the asset management arm.

"Our ambition is to be a leading force in the life insurance and retirement industry in the United States, because it's the largest market in the world. And mainstream America has been under-served," CEO Lard Friese told Reuters.

Aegon's rivals in the U.S. life insurance market include Prudential Financial, MetLife, Lincoln National and AIG.

"In (U.S.) life insurance business, we're well underway to become a top five life player in new sales," Friese said.

($1 = 0.8565 euros)

(Reporting by Mateusz Rabiega and Aleksandra Kret; Editing by Matt Scuffham and Milla Nissi-Prussak)