Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| So in the target segment that we are really focused on, we're seeing actually the momentum is very good |
| Commercial momentum was strong throughout the year |
| Operating capital generation before holding funding and operating expenses was strong in 2023 to 2023 at EUR1.3 billion and came in above our guidance, supported by solid business growth and favorable onetime items |
| The second half of 2023 saw Aegon maintained commercial momentum, mainly driven by the strong performance of our U.S |
| So in that sense, we're quite focused in a particular market segment where we believe we have -- it's more attractive to us in terms of margins and also where we believe we have unique capabilities that can help us grow the business |
| In the latter months of 2023, however, interest rates stabilized and commercial results have improved, especially in the fourth quarter |
| I'm very proud of everything the teams have achieved in 2023, and I'm grateful for all of their hard work during the year |
| We will continue to work hard executing our strategy in 2024 and I am optimistic about our prospects |
| At the same time, we are seeing good results in the financial metrics on which we primarily steer the business |
| The operating result improved compared with the second half of 2022, driven by higher returns on cash capital at holding and an unfavorable onetime item in the previous year |
| In addition, we are benefiting from the new asset management joint venture with ASR as well as the other strategic initiatives we have undertaken recently |
| Transamerica aims to increase the earnings on in-force from its Retirement business by leveraging its capabilities as a record keeper with the ambition to materially increase the penetration of ancillary products and services it offers |
| The capital ratios of our units remain strong and well above their respective operating levels |
| Furthermore, cash capital at the holding amounted to EUR2.4 billion, well above the operating level despite reducing leverage by EUR500 million in the fourth quarter and making good progress executing the EUR1.5 billion share buyback program |
| In addition, our strong commercial performance, together with the important steps we have taken to realign our company, have given us a solid foundation on which to sustainably grow our dividend per share |
| They have plenty of uses for it that we're actually very, very happy to be able to achieve |
| The business performed very well during the course of the year |
| New life sales in our growth markets increased by 18% compared with 2022 with good growth in both Brazil and China, offsetting weaker sales in Spain, in part due to a divestment there in the previous year |
| Momentum has been strong throughout the year |
| But that business is very well positioned at the moment that sentiment turns in China that they will -- I expect I'm actually quite constructive on the outlook of that |
| Operating capital generation growth was strong in 2023 on the back of profitable business growth in our U.S |
| Now if you look at La Banque Postale, especially the Chinese joint venture, that joint venture is we're very well positioned in China, as you know, because over the last years, you have seen that driving a lot of positive flows and a lot of positive momentum |
| Commercial momentum remains strong in our U.S |
| The other thing to measure is the ancillary products that we are able to sell to improve the margins |
| The workplace channel showed strong commercial results throughout 2023 |
| Free cash flow was strong as well in the second half of 2023, amounting to EUR429 million following the receipt of planned remittances from all units |
| As the book runs off, voluntary reserve is gradually released, benefiting earnings on in-force, but not IFRS earnings |
| Importantly, we have been able to maintain the profitability of new sales, achieving internal rates of returns in excess of 12% |
| We continue to make good progress on our strategic agenda of investing and growing our platform activities |
| Experience variance in the strategic assets was overall favorable from favorable policyholder behavior |
| Statement |
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| Meanwhile, in the joint venture, AIFMC, net outflows were driven by continued weak investor sentiment in China |
| In the U.S., the operating result decreased by 39% over the same period, reflecting both the impact of management actions and the fact that the prior period included several nonrecurring items |
| This year, in 2023, our Chinese business in Asset Management has suffered from a negative local market sentiment and that you see in negative flows |
| In the retail channel, on the other hand, commercial results continue to be hampered by the current macroeconomic environment, which has negatively impacted investor sentiment across the industry |
| Firstly, there is a negative impact relating to the implementation of the remaining management actions that we announced at our Capital Markets Day in June |
| Finally, our holding or group center reported a negative result of EUR72 million, which mainly reflects funding and operating expenses |
| Secondly, the setup of an affiliated reinsurance entity in Bermuda and the subsequent reinsurance of a block of deferred annuities to it had a negative impact |
| On the Retirement Plans business, indeed, the operating result is down a bit |
| related to the underperformance of alternative investments |
| It notably included negative mortality experience variance of $91 million |
| Market conditions have been especially challenging for fixed income-focused asset managers such as our Global Platforms business, as interest rates rose in 2022 and '23 |
| And you've seen outflows of some large cases, the profitability and the margins of these large cases as much is really much, much reduced versus sort of profitability, the loss cases that you're losing is the outflows is much worse than the profitability of the mid plans, mid-market plans |
| So liquidity constraints and also received the S&P's rallied recently as well |
| And as we saw this quarter, the mortality was unfavorable compared to our long-term best estimate assumptions |
| Onetime items had an overall negative impact of 10 percentage points over the reporting period |
| Finally, these negative drivers were in part offset by the recognition of the statutory equity of two captive insurance companies in available capital |
| Second, claims and policyholder experience was unfavorable at $210 million |
| The operating result of the noninsurance fee business was negatively impacted by inflationary pressure on expenses |
| On a separate note, the insurance net investment result of $200 million decreased compared with last year's second half, notably reflecting the impact of management actions on asset levels and an increase in interest accretion on liabilities |
| Third, some smaller onetime items had on balance a negative impact |
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