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AM Best Reaffirms Aegon Ltd. Ratings for U.S. Life Subsidiaries

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AM Best Reaffirms Ratings for Aegon Ltd.'s U.S. Subsidiaries

AM Best has reaffirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (ICRs) of "a+" (Excellent) for Aegon Ltd.'s U.S.-based life and health subsidiaries. Operating under the Aegon USA Group, these subsidiaries include Transamerica Life Insurance Company in Iowa and Transamerica Financial Life Insurance Company in New York, with a stable outlook maintained for these ratings.

AM Best's assessment highlights Aegon USA's robust balance sheet, which is underpinned by strong operational performance and a comprehensive business profile. The group demonstrates a well-defined approach to enterprise risk management, ensuring compliance with regulatory requirements and maintaining high levels of risk-adjusted capitalization per the Best’s Capital Adequacy Ratio (BCAR). Additionally, access to liquidity via the Federal Home Loan Bank and capital markets enhances Aegon USA's financial flexibility.

Aegon USA's investment portfolio aligns with industry standards, albeit with some exposure to higher-risk assets in recent declining trends. The balance sheet shows interest rate sensitivity and a significant reliance on reinsurance for effective liability management, aspects crucial in risk management strategies.

Operationally, Aegon USA has demonstrated strong performance with positive pretax earnings, achieving double-digit equity returns from diverse product lines. The recent increase in premiums through 2024 and stability observed in early 2025 underscores strong underwriting practices and effective claims management.

Strategically, Aegon Ltd. plans to relocate its headquarters and legal base to the United States by 2028, rebranding as Transamerica Inc. This move aims to establish a dominant presence in the U.S. life insurance and retirement sectors by reducing capital intensity and selectively expanding through calculated exits and buyouts in specific lines.

Aegon USA offers a wide-ranging product suite, including traditional life, indexed universal life, and variable annuities. Although some variable annuities with living benefit riders represent higher-risk profiles, Aegon USA mitigates these risks via enhanced hedging activities and has ceased offering new business in this segment.

For comprehensive details on the ratings and associated disclosures, stakeholders may visit AM Best's platform and refer to the Guide to Best's Credit Ratings. AM Best operates globally in the insurance industry as a credit rating agency, news publisher, and data analytics firm. Additional information is accessible at www.ambest.com.

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