By Mateusz Rabiega and Jakob Van Calster

(Reuters) -Dutch insurer ASR Nederland could speed up its 525 million euro ($548 million) share buyback if Aegon, its largest shareholder, decides to sell down its stake, CEO Jos Baeten told Reuters on Wednesday.

The Netherlands' second-biggest insurer earlier announced a 125 million euro share buyback to run for up to three months from February 20.

"We've also said... we will do (one more buyback) over 2025, for 175 million and a year thereafter, 225 million", Baeten said in an interview, adding this could be fast-forwarded in case Aegon were to divest its almost 30% stake.

He underlined that with this in mind, ASR would prefer to focus on investing in business, especially in pension buy-outs, as the firm aspires to become the "leading player" in the Dutch pension market.

"Pension buy-outs... are a better way to spend capital and to create long-term value. But in case we aren't able to do any buy-outs or spend in terms of growth... then we would definitely consider giving back more to shareholders", he added.

Having already settled a 1.6 billion euro pension buy-out deal, ASR aims to conclude at least 6.4 billion euro more by 2027, following favourable changes to pension law in the country.

ASR also proposed a total dividend of 654 million euros, or 3.12 euros per share, for 2024.

The insurer earlier said its annual operating profit jumped nearly 47% on the year, up to 1.43 billion euros in 2024, supported by growth across all segments, with a significant contribution from its Aegon Nederland business, lifting shares by about 4% to an all-time high.

ING Global Markets Research said: "Overall results are mostly in line... Faster execution of the SBB by May 25, leaves room for options in 2H25. ASR is set for a strong year given its capital position and after pulling the largest buyout in the Dutch market in 2024."

ASR bought peer Aegon's Dutch business in 2022 in a 4.9 billion euro deal, becoming the second-largest insurer in the Netherlands.

($1 = 0.9577 euros)

(Reporting by Mateusz Rabiega and Jakob Van Calster in Gdansk; Editing by Tom Hogue, Sherry Jacob-Phillips, Philippa Fletcher)