# Aegon bets on Transamerica to boost cash flow and dividend in 2025 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-06-22 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Aegon Forecasts Higher Cash Flow & Dividend Growth in 2025 Meta Description: Aegon expects increased free cash flow and dividend in 2025, with plans to invest in higher-return assets and unlock untapped potential in the U.S. Learn more URL: https://financedigest.com/aegon-bets-on-transamerica-to-boost-cash-flow-and-dividend-in-2025html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-06-22t062944z1lynxmpej5l05vrtroptp4aegon-1736813842224-compressed.jpg) (Reuters) -Transamerica owner Aegon on Thursday forecast a higher free cash flow and dividend in 2025, flagging untapped potential in the U.S and stepping up its strategy to invest in higher-return assets. The Dutch-listed insurer said it sees free cash flow of about 800 million euros ($878.96 million) in 2025, up from the 600 million it expects for 2023. It also projects a dividend per [share of around 0.40 euros](https://www.financedigest.com/asia-shares-subdued-yen-shunned-as-euro-shines.html "Asia shares subdued, yen shunned as euro shines") in 2025, from around 0.30 euros expected for 2023. ING in a note to clients said the “targets allude to wider ambitions”, adding Aegon’s management has consistently beaten its own forecasts. Aegon is refocusing its corporate structure and intends to raise [investments in what it terms](https://www.financedigest.com/how-to-invest-in-gold-and-other-precious-metals-for-long-term-profit.html "How to invest in gold and other precious metals for long-term profit") “strategic”, higher return assets. It also sees untapped [potential in the insurance market](https://www.financedigest.com/lte-and-lte-advance-market-potential-growth-share-demand-and-analysis-of-key-players-forecasts-to-2025.html "LTE And LTE Advance Market Potential Growth, Share, Demand and Analysis of Key Players – Forecasts to 2025") in the U.S, where it is present through its subsidiary Transamerica. In a media call, Aegon’s CEO Lard Friese told reporters: “There are 68 million households, which are called the so-called middle-market in the United States. This is a [market segment that is relatively under-served by the financial](https://www.financedigest.com/marketing-in-a-new-financial-frontier.html "Marketing in a new financial frontier ") services industry…. Transamerica, Aegon’s largest business, will further invest in its [insurance distribution network World Financial](https://www.financedigest.com/revolutionising-finance-exploring-the-impact-of-omnichannel-insurance-on-customer-experience.html "Revolutionising Finance: Exploring the Impact of Omnichannel Insurance on Customer Experience") Group (WFG), and will aim to increase earnings from its retirement business. WFG has a network of around 70,000 insurance agents across the country, the [company said](https://www.financedigest.com/naturgys-profit-rises-on-lng-gains-soothing-shareholders-by-pietro-lombardi-madrid-reuters-spanish-power-utility-naturgy-reported-on-monday-an-88-jump-in-profit-for-the-first-six-months-of.html "Naturgy’s profit rises on LNG gains, soothing shareholders By Pietro Lombardi MADRID (Reuters) – Spanish power utility Naturgy reported on Monday an 88% jump in profit for the first six months of the year, boosted by strong earnings at its liquefied natural gas (LNG) business, which could help it to win over restive investors. Earlier this month, the company said it would increase its dividend floor through 2025 while trimming expected investment, as it sought to make rewarding shareholders a priority. Pleasing them has become a focus as Naturgy considers changes that could reshape the company and after arguments over the potential appointment of a chief executive. Naturgy’s first-half net profit jumped to 1.05 billion euros (.16 billion), boosted by its liquefied natural gas (LNG) business. Shares were down 0.2% in mid-morning trading, bucking deeper declines, in particular for Spain’s blue-chip banks and utilities after a general election on Sunday produced no clear winner. Renta 4 Banco analyst Angel Perez Llamazares said Naturgy performed better than expected, adding “cash flows also beat our expectation,” and debt fell more than expected. After natural gas prices hit record levels last year, Naturgy said a fall in procurement costs this year and hedging gains had boosed profits. In the first half of the year, the company “exceeded the objectives of operating efficiency, cash generation, investment materialisation and debt reduction,” Executive Chairman and CEO Francisco Reynes said. After rival Iberdrola named a separate CEO last year, Naturgy is the only large energy company in Spain to combine the roles of executive chairman and CEO. Earlier this month, the company raised the dividend floor to 1.40 euros a share, from 1.20 euros. Operating profit (earnings before interest, tax, depreciation and amortisation) is expected to reach 5.1 billion euros, compared with a previous guidance of 4.8 billion euros. It said it was targeting net profit of 1.8 billion euros in 2025. Naturgy also relaunched its plan to split regulated infrastructure operations and liberalised energy businesses into two listed companies. The project had been suspended after the Ukraine war disrupted energy markets and analysts are still sceptical. “We believe it is unlikely that Naturgy will be able to implement its asset split in the short term and it is also unlikely that a big change in the shareholding of the company would occur,” said RBC analyst Fernando Garcia. ( = 0.8986 euros) (Reporting by Pietro Lombardi, editing by Inti Landauro and Barbara Lewis)"), adding that Transamerica hopes to increase this to 110,000 agents by 2027. Aegon’s 4.9 billion-euro deal with ASR, in which it is selling its Dutch operations in exchange for cash and shares, should be completed “in the coming weeks”, it said. Analysts have said that the nearly [30% stake](https://www.financedigest.com/greece-considers-listing-30-stake-in-athens-airport.html "Greece considers listing 30% stake in Athens airport") that Aegon will gain in its smaller rival ASR after the transaction should ensure it also benefits from Dutch pension reform. The company, which is holding its Capital [Markets Day](https://www.financedigest.com/omicron-found-in-europe-11-days-ago-jolts-markets-on-vaccine-fears.html "Omicron, found in Europe 11 days ago, jolts markets on vaccine fears") on Thursday, added it would take “key talent management decisions,” and presented a new logo. ($1 = 0.9102 euros) (Reporting by Olivier Sorgho; Editing by Clarence Fernandez and Sharon Singleton) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---