Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||
Common shares, par value EUR 0.12 per share | AEG | New York Stock Exchange | ||||
5.500% Fixed-to-Floating Subordinated Notes due 2048 | AG48 | New York Stock Exchange | ||||
5.100% Subordinated Notes due 2049 issued by Aegon Funding Company LLC | AEFC | New York Stock Exchange |
aegon Helping people live their best lives Annual Report on Form 20-F 2023
Cross reference table Form 20-F
1 | Identity of Directors, Senior Management and Advisers | n.a. | ||
3A | Selected financial data | 100-101 | ||
3B | Capitalization and indebtedness | n.a. | ||
3C | Reasons for the offer and use of proceeds | n.a. | ||
3D | Risk factors | 413-435 | ||
4A | History and development of the Company | 2-3, 9-35, 313, 512-513 | ||
4B | Business overview | 91-92, 394-412, 436 | ||
4C | Organizational structure | 2-3, 314-315 | ||
4D | Property, plants and equipment | 437 | ||
5A | Operating results | 102-106 | ||
5B | Liquidity and capital resources | 85-90, 231-233, 282-284, 293-295, 439 | ||
5C | Research and development, patent and licenses etc. | n.a. | ||
5D | Trend information | 9-35, 100-120 | ||
5E | Critical Accounting Estimates | 174-177 | ||
6A | Directors and senior management | 48-53 | ||
6B | Compensation | 62-78, 225-227, 315-317 | ||
6C | Board practices | 42-46 | ||
6D | Employees | 15, 27-31, 212, 377 | ||
6E | Share ownership | 42-46, 75-76, 380-383 | ||
6F | Disclosure of a registrant’s action to recover erroneously awarded compensation | n.a. | ||
7A | Major shareholders | 42-46, 380-383 | ||
7B | Related party transactions | 315-317 | ||
7C | Interest of experts and counsel | n.a. | ||
Financial Information | ||||
8A | Consolidated Statements and Other Financial Information | 122-130, 384-389, 439 | ||
8B | Significant Changes | n.a. | ||
9A | Offer and listing details | 440 | ||
9B | Plan of distribution | n.a. | ||
9C | Markets | 440 | ||
9D | Selling shareholders | n.a. | ||
9E | Dilution | n.a. | ||
9F | Expenses of the | n.a. |
Annual Report on Form 20-F 2023 | |
10 | Additional Information | |||
10A | Share capital | n.a. | ||
10B | Memorandum and articles of association | 441-444 | ||
10C | Material contracts | 445 | ||
10D | Exchange controls | 446 | ||
10E | Taxation | 447-450 | ||
10F | Dividends and paying agents | n.a. | ||
10G | Statement by experts | n.a. | ||
10H | Documents on display | 513 | ||
10I | Subsidiary Information | n.a. | ||
10J | Annual report to security holders | n.a. | ||
11 | Quantitative and Qualitative Disclosures About Market Risk | 79-84, 85-90, 177-207, 275-282 | ||
12 | Description of Securities Other than Equity Securities | n.a. | ||
13 | Defaults, Dividend Arrearages and Delinquencies | n.a. | ||
14 | Material Modifications to the Rights of Security Holders and Use of Proceeds | n.a. | ||
15 | Controls and Procedures | 94-95 | ||
16A | Audit committee financial expert | 58 | ||
16B | Code of Ethics | 93 | ||
16C | Principal Accountant Fees and Services | 451 | ||
16D | Exemptions from the Listing Standards for Audit Committees | n.a. | ||
16E | Purchases of Equity Securities by the Issuer and Affiliated Purchasers | 452 | ||
16F | Change in Registrant’s Certifying Accountant | n.a. | ||
16G | Corporate Governance | 42-46, 444 | ||
16H | Mine Safety Disclosure | n.a. | ||
16I | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | n.a. | ||
16J | Cybersecurity | 453-454 | ||
17 | Financial Statements | n.a. | ||
18 | Financial Statements | 122-378, 384-389 | ||
19 | Exhibits | 514 |
Annual Report on Form 20-F 2023 | |
Our purpose
People are living longer, and we welcome the possibilities this brings. We see longevity, aging, and changing life patterns as an opportunity for our customers, our employees, and society as a whole.
As recently as the late 20th century, life consisted of three stages: 20 years of education, 40 years of work, and a short retirement of 15-20 years. Since then, life expectancy has increased globally. This trend is forcing us to rethink what life should look like: when we study, work, take breaks, and switch careers. The idea of a standard path no longer applies; there are as many options as there are lives.
Longer lifespans bring new challenges. But they are also keeping people younger for longer. The old associations with aging – of frailty and inactivity – are being replaced by the expectation that the years after 60 can be the most rewarding. This coincides with a growing awareness of the earth’s finite resources: people are increasingly using their extra time on this planet to find ways to make a positive impact.
Financial services customers are looking to companies to support them in living longer, more varied lives while enabling them to contribute to a better world. At Aegon, we aim to support society’s transition from the traditional three-stage life to a multi-stage life, so that people from all walks of life can make the most of their time on earth. That is why, across our businesses, we are guided and united by a single, clear purpose:
Helping people live their best lives.
Contents 2 About Aegon 6 CEO interview 9 Our strategy 39 Governance and risk management 40 Boards and Governance 79 Risk management 91 Regulation and supervision 97 Financial information 102 Results of operations 122 Financial statements 394 Business overviews 455 Sustainability information 456 Basis of preparation 461 Our material topics 483 Our commitments
About Aegon | ||||
Welcome to Aegon’s Annual Report on Form 20-F 2021
10 | Additional Information | |||
10A | Share capital | n/a | ||
10B | Memorandum and articles of association | 347-348 | ||
10C | Material contracts | 350 | ||
10D | Exchange controls | 350 | ||
10E | Taxation | 351-354 | ||
10F | Dividends and paying agents | n/a | ||
10G | Statement by experts | n/a | ||
10H | Documents on display | 405 | ||
10I | Subsidiary Information | n/a | ||
11 | Quantitative and Qualitative Disclosures About Market Risk | 67-71, 72-77, 150-170 | ||
12 | Description of Securities Other than Equity Securities | n/a | ||
13 | Defaults, Dividend Arrearages and Delinquencies | n/a | ||
14 | Material Modifications to the Rights of Security Holders and Use of Proceeds | n/a | ||
15 | Controls and Procedures | 83-84 | ||
16A | Audit committee financial expert | 44-45 | ||
16B | Code of Ethics | 82 | ||
16C | Principal Accountant Fees and Services | 355 | ||
16D | Exemptions from the Listing Standards for Audit Committees | n/a | ||
16E | Purchases of Equity Securities by the Issuer and Affiliated Purchasers | 356 | ||
16F | Change in Registrant’s Certifying Accountant | n/a | ||
16G | Corporate Governance | 32-35 | ||
16H | Mine Safety Disclosure | n/a | ||
16I | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | n/a | ||
17 | Financial Statements | Refer to Item 18 | ||
18 | Financial Statements | 113-279, 284-290 | ||
19 | Exhibits | 406 |
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This is Aegon’s Annual Report on Form 20-F for the year ended December 31, 2021. The2023. This report outlines the challenges and opportunities facing our business todayenvironment and material topics and how we address these through our purpose, vision, and strategy, to steer our business and create long-term value for our stakeholders. The report also contains the 20212023 consolidated financial statements and companystandalone financial statements of Aegon N.V.Ltd. (from page 113)122).
This document contains Aegon’s Annual Report as filed on Form 20-F (also referred to in this document as ‘Annual Report’“Annual Report”) with the United States Securities and Exchange Commission (SEC).
We have prepared the Annual Report on Form 20-F in accordance with requirements of the U.S. Securities and Exchange Commission and the International Financial Reporting Standards, as issued by the IASB.
Aegon prepares its consolidated financial statements in accordance with IFRS and with Part 9 of Book 2 of the Netherlands Civil Code for purposes of reporting with the U.S. SEC, including financial information contained in this Annual Report on Form 20-F. Aegon’s accounting policies and its use of various options under IFRS are described in note 2 to the consolidated financial statements.
Other than for SEC reporting, Aegon prepared its Annual Accounts under International Financial Reporting Standards as adopted by the European Union, including the decisions Aegon made with regard to the options available under International Financial Reporting Standards as adopted by the EU (EU-IFRS). EU-IFRS differs from IFRS in respect of certain paragraphs in IAS 39 ‘Financial“Financial Instruments: Recognition and Measurement’Measurement” regarding hedge accounting for portfolio hedges of interest rate risk. Under EU-IFRS, Aegon applies fair value hedge accounting for portfolio hedges of interest rate risk (fair value macro hedges) in accordance with the EU ‘carve out’“carve out” version of IAS 39. Under IFRS, hedge accounting for fair value macro hedges cannot be applied to mortgage loans and ineffectiveness arises whenever the revised estimate of the amount of cash flowsinflows in scheduled time buckets is either more or less than the original designated amount of that bucket.
This information is prepared by revising the hedge accounting impacts that are applied under the EU ‘carve out’“carve out” version of IAS 39. Financial information under IFRS accordingly does not take account of the possibility that had Aegon applied IFRS as its primary accounting framework it might have applied alternative hedge strategies where those alternative hedge strategies could have qualified for IFRS compliant hedge accounting. These decisions could have resultedinresulted in different shareholders’ equity and net income amounts compared to those indicated in this Annual Report on Form 20-F.
Due to the completion of the sale of Aegon the Netherlands as per July 4, 2023 the EU “carve out” is no longer applied by Aegon as of that date.
A reconciliation between EU-IFRS and IFRS is included in note 2.1 to the consolidated financial statements.
This Annual Report on Form 20-F includes the following non-IFRS financial measure: operating result and addressable expenses. The reconciliation of operating result to the most comparable IFRS measure is presented in note 5 ‘Segment information’ of the consolidated financial statements. Operating result is calculated by consolidating on a proportionate basis the revenues and expenses of Aegon’s joint ventures in Brazil, China, India, the Netherlands, Portugal and Spain and Aegon’s associates in France, the Netherlands and United Kingdom. The information on the following tables also includes the non-IFRS financial measure operating result after tax. This is the after-tax equivalent of operating result. The reconciliation of addressable expenses to operating expenses, the most comparable IFRS measure, is presented in the section Results of Operations. Operating expenses are all expenses associated with selling and administrative activities (excluding commissions). This includes certain expenses recorded in other charges for segment reporting, including restructuring charges. Addressable expenses are calculated by excluding the following items from operating expenses: direct variable acquisition expenses, restructuring expenses (including expenses related to the operational improvement plan), and expenses related to acquisitions and disposals. Addressable expenses are reported on a constant currency basis.
This report also conforms to Bermudian laws and regulations. As of December 31, 2023, Aegon qualified as a non-residential company under the Dutch Act on Non-Residential Companies. Consequently, this report has been drawn up in line with the requirements laid down in Part 9 Book 2 of the Dutch Civil Code.
Throughout this document, Aegon N.V.Limited (Ltd.) is also referred to as either ‘Aegon’“Aegon” or ‘the Company’“the company”. For the purposes of this report, ‘member companies’“member companies” shall mean, with respect to Aegon N.V.Ltd., those companies consolidated in accordance with applicable Dutch and Bermudian legislation relating to consolidated accounts.
References to ‘NYSE’“NYSE” and ‘SEC’“SEC” relate to the New York Stock Exchange and the USU.S. Securities and Exchange Commission respectively. Aegon uses ‘EUR’“EUR” and ‘euro’“euro” when referring to the lawful currency of European Monetary Union member states; ‘USD’“USD” and ‘US dollar’“US dollar” when referring to the lawful currency of the United States, and ‘GBP’“GBP”, ‘UK pound’“UK pound”, and ‘pound sterling’“pound sterling” when referring to the lawful currency of the United Kingdom.
If you have comments or suggestions about this report, please contact our officesheadquarters in The Hague, the Netherlands. Contact details may be found on page 404.
Annual Report on Form 20-F 2023 | 1
![]() | About Aegon Governance and risk management Financial information Sustainability information | |||||||
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Who we are
Aegon is an integrated, diversified, international financial services group. Wegroup with its roots dating back almost 180 years to the first half of the 19th century. Our ambition is to build leading businesses that offer their customers investment, protection, and retirement solutions, always with a clear purpose:
Helping people live their best lives.
This commitment requires a sustainable, future-oriented business that actively considers all stakeholders, including our customers, employees, investors, business partners, and society at large. Our roots date back almost 180 years toheadquarters are located in The Hague, the first halfNetherlands, while the legal seat of the 19
Business overview
Aegon’s portfolio of businesses includes fully owned businesses in the United States theand United Kingdom and the Netherlands), three growth markets (Spain & Portugal, Brazil, and China), and onea global asset manager. Aegon is headquarteredalso has insurance joint-ventures in The Hague,Spain & Portugal, China, and Brazil and asset management partnerships in France and China, and owns a Bermuda-based life insurer, as well as an almost 30% strategic shareholding in the Netherlands.
Aegon allocates capital towardtowards profitable opportunities in its core and growthchosen markets, and through Aegon Asset Management. As an international financial services group, we share capital,leverage the talent, knowledge, processes, and technologies acrossof our different businesses. We derive our revenues and earnings from insurance premiums, investment returns, fees, and commissions.
Million customers 23.9 | Women in senior management1 38% | Weighted average carbon intensity2 338 tCO2e/EURm revenue | ||
Employee engagement score 77% | Operating result3 EUR 1,498 In millions | |||
Free cash flow EUR 715 In millions | Cash Capital at Holding EUR 2.4 In billions | Revenue-generating investments EUR 826 In billions |
1 | Please refer to page 27 and page 30 onward for further information. |
2 | Metric tons CO2e/EURm revenue of corporate fixed income and listed equity general account assets. For details on the methodology used, please see our TCFD disclosure (Methodology) on page 497. |
3 | Non-IFRS financial measures. For reconciliation to the most directly comparable IFRS measures, see note 5. |
2 | Annual Report on Form 20-F 2023
About Aegon | ||||||||
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![]() | Aegon’s fully owned businesses In North America, Aegon operates primarily under two brands: Transamerica in the United States (US) and World Financial Group (WFG) in the US and Canada. Transamerica has two divisions, Workplace Solutions and Individual Solutions. Workplace Solutions offers retirement plan recordkeeping, advisory services, employee benefits, group annuities, collective investment trusts, health savings and flexible savings accounts, individual retirement accounts, In the United Kingdom, Aegon is a market-leading investment platform, providing a broad range of investment and retirement solutions to individuals, advisers, and employers. Aegon UK serves its customers through a combination of workplace and retail financial advisers. Aegon Asset Management (Aegon AM) is an active global investment management business with EUR 305 billion in assets under management for a global client base consisting of pension plans, public funds, insurance companies (including Aegon’s subsidiaries and partnerships), banks, wealth managers, family offices, and foundations. Aegon AM owns 49% of Aegon-Industrial Fund Management Company, a Shanghai-based asset manager offering mutual funds, segregated accounts and advisory services in China. In France, Aegon AM owns 25% of La Banque Postal Asset Management. Aegon’s partnerships Aegon creates value through its partnerships by combining strong local partners with Aegon’s international expertise. In Spain & Portugal, Aegon has a strategic partnership with Banco Santander to distribute life, health, and non-life insurance products through the bank’s branches, with Aegon owning a 51% stake in the joint venture. Aegon Spain’s own distribution channel offers life insurance, health insurance, and pension products. In China, Aegon owns a 50% stake in Aegon THTF Life Insurance Company, which offers life insurance solutions through a network of branches, primarily in eastern China. In Brazil, Aegon has a 59.2% economic interest, and 50% of voting common shares, in Mongeral Aegon Group (MAG Seguros), the country’s third-largest independent life insurer. MAG Seguros offers individual protection solutions. | |||
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In July 2023, Aegon completed the transaction to high-net-worth individuals globally, as well as our digitally focused joint venture Aegon Life Insurance Company in India. In November 2020, Aegon announced the sale ofcombine its businesses in Hungary, Poland, Romania,Dutch pension, life and Turkey to Vienna Insurance Group AG Wiener Versicherung Gruppe.non-life insurance, banking, and mortgage origination activities with a.s.r. The closingcompletion of the sale is subject to regulatory approval.
Further information on our businesses can be found in the business overview section on page 295pages 9 and 10 of this report.
Annual Report on Form 20-F 2023 | 3 |
![]() | About Aegon Governance and risk management Financial information Sustainability information | |||
2023 milestones
Q1 § Aegon’s Extraordinary Meeting of Shareholders (EGM) approves the strategic decision to combine Aegon’s Dutch pension, life and non-life insurance, banking, and mortgage origination operations with a.s.r. to create a leading player in the Dutch market. § USA Today selects Transamerica as a top choice for life insurance policies, naming the business the best for living benefits. § Transamerica is singled out by Forbes Advisor in the life insurance industry for reliable cash value policy illustrations. § In celebration of Aegon’s 20th anniversary in China, Aegon THTF launches its new customer brand, Elite Service Plus, to provide more comprehensive protection for customers with a focus on health and aging care services. In addition, it launches Aegon THTF YiX, a critical illness insurance product designed to address unmet health insurance needs and the high cost threshold of existing commercial health insurance. § Aegon hosts an educational webinar to outline its implementation of the accounting standards IFRS 17 and IFRS 9, which took effect on January 1, 2023. | Q2 § Aegon announces the sale of its UK individual protection book to Royal London, supporting Aegon UK’s focus on its core retail and workplace platform. § Aegon completes the sale of Aegon’s insurance, pension, and asset management businesses in Central and Eastern Europe to Vienna Insurance Group. § Aegon completes a share buyback program that aims to return EUR 200 million of surplus cash capital to shareholders. § Aegon expands its 2025 climate targets to strengthen its commitment to net-zero emissions by 2050 and will reduce the carbon intensity of its directly held real estate investments by 25% by 2025. § Aegon strengthens its asset management capabilities by acquiring NIBC’s European collateralized loan obligation (CLO) activities. § Aegon’s Capital Markets Day in London unveils the next chapter in the company’s strategy to create leading businesses in investment, protection, and retirement solutions. Transamerica is to accelerate its growth and build America’s leading middle market life insurance and retirement company. |
4 | Annual Report on Form 20-F 2023
● About Aegon Q3 Aegon completes the combination of its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. and begins its asset management partnership with a.s.r. ● Aegon announces a EUR 1.5 billion share buyback program, following the completion of the transaction with a.s.r. ● Aegon Asset Management and La Banque Postale extend their partnership to 2035 via their joint venture, La Banque Postale Asset Management (LBP AM), and complete the acquisition of La Financière de l’Échiquier, a French asset manager. ● Aegon announces the sale of its 56% stake in its joint venture in India, Aegon Life Insurance Company, to Bandhan Financial Holdings Limited. ● Aegon increases its economic interest in its Brazilian joint venture, Mongeral Aegon Group, to 59.2%. ● Aegon UK extends its partnership with Nationwide Building Society (NBS) to support its strategy to be the leading digital platform provider in the workplace and retail markets. ● Aegon completes its re-domiciliation to Bermuda, as a result the company became a Bermuda entity: Aegon Ltd. ● Aegon UK is accepted as a signatory to the Financial Reporting Council’s UK Stewardship Code. Q4 ● Aegon’s group supervision transfers to the Bermuda Monetary Authority (BMA). ● Aegon announces its intention to move its headquarters to the World Trade Center office complex at Schiphol Airport, which aligns with Aegon’s identity as an internationally operating financial services company. ● Aegon celebrates 40 years listed on Euronext Amsterdam with gong ceremony at Euronext. ● a.s.r. and Aegon combine art collections to form Stichting Kunst & Historisch Bezit a.s.r. & Aegon. Annual Report on Form 20-F 2023 | 5
About Aegon Governance and risk management Financial information Sustainability information Lard Friese CEO Aegon Ltd. Positioned to build market leaders In 2023, Aegon completed significant steps in its transformation to create leading businesses in investment, protection, and retirement solutions. We also revealed our plans to accelerate the execution of our strategy as we entered a new chapter in our transformation. 6 | Annual Report on Form 20-F 2023
About Aegon | ||||
Aegon took major steps in its transformation in 2023. How do you look back on the year?
It was a historic year for Aegon. While we made progress in several areas, three events stand out to me as major milestones.
First, we closed the transaction to combine our Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. In doing so, we created a leading Dutch insurance company, in which we now own an almost 30% strategic shareholding. As part of that transaction, we also began a long-term asset management partnership with a.s.r., further strengthening the leading position of Aegon Asset Management in Alternative Fixed Income and Retirement Investment Solutions in the Netherlands.
In September, we took the historic step of redomiciling our legal seat to Bermuda, while maintaining our headquarters in the Netherlands and remaining a Dutch tax resident. Following the transaction with a.s.r., Aegon no longer had a regulated insurance entity in the Netherlands. This meant that we needed a new group supervisor. Following discussions in our college of supervisors, one of the existing members, the Bermuda Monetary Authority, informed Aegon that it would assume this role if the company moved its legal domicile to Bermuda.
Finally, we held our Capital Markets Day in London, where we presented our strategy for Transamerica to focus on the American middle market, and outlined our plans and financial targets for the next three years as we work toward our ambition to create leading businesses in investment, protection, and retirement solutions.
In another volatile year, how did Aegon navigate the changing market landscape for its stakeholders?
2023 was marked by widespread volatility across the global economy. We saw continued high inflation and rising interest rates, coupled with increased geopolitical instability, from the continued Russian war of aggression against Ukraine to the global energy crisis, and the war between Israel and Hamas.
These events had a direct impact on our stakeholders. Around the world, ordinary households felt the effects of rising living costs and increased financial uncertainty. Moreover, they took place against the backdrop of a society that is living longer and, at the same time, becoming more attuned to challenges such as climate change and inequality.
In this climate of heightened uncertainty, Aegon has continued to do what it does best. This includes navigating the uncertain financial landscape to deliver robust returns for our investors, and also taking steps to help all our stakeholders – whether they are our customers, employees, or local communities – live their best lives.
Reflecting on our financial performance, I’m extremely proud of what we achieved in 2023.
Throughout a year characterized in many places by geopolitical upheaval and economic uncertainty, we maintained a solid commercial momentum, driven by strong performances in our US business, Transamerica, our UK workplace business, and our joint ventures in Brazil and China.
We exceeded our guidance on operating capital generation (OCG) for 2023, with a final result of EUR 1,280 million; our business units remained well capitalized; and we maintained a strong holding company cash position. Our free cash flow amounted to EUR 715 million for the year, enabling us to exceed our guidance for 2023.
2023 also saw us report for the first time under the new IFRS 17 standard. Our operating result for the year was EUR 1,498 million, down from EUR 1,802 million in 2022. This reflected one-time benefits in the previous year, as well as the impact of management actions, such as those announced at our 2023 Capital Markets Day. OCG continues to be the primary lens by which we evaluate our business performance and steer the company.
At the same time, we continued to offer our shareholders attractive capital distributions. As of December 31, 2023, we had completed 54% of our current EUR 1.5 billion share buyback program, and we have proposed a final dividend of 16 cents per share. On this basis, the total dividend paid for the full year 2023 will be 30 cents per share, in line with our target.
What does the next chapter in Aegon’s transformation entail?
A key strategic focus is to ensure that our largest business, Transamerica, reaches its full potential. We are accelerating the company’s growth to build America’s leading middle-market life insurance and retirement company. To achieve this, Transamerica will continue to develop World Financial Group (WFG), its affiliated insurance agency of approximately 74,000 independent agents. We will also invest in Transamerica’s product manufacturing capabilities and operating model to provide a better customer experience and increase sales.
Annual Report on Form 20-F |
![]() ![]() | About Aegon | |||||
In addition, we will strengthen Aegon’s UK and our global asset management business and |
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I am proud that, throughout this period of positive third-party net deposits. There is still work to be done, though, including the need to attract more customers, for example to our US Workplace Solutions business.
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What other achievements stand out for you?
At the same time, we maintained our solid commercial performance throughout 2023, particularly in our US business, Transamerica. I should add that our good commercial performance, and our solid and consistent capital generation, allowed us to deliver the strong capital return to our shareholders.
This performance, together with the important steps we took in 2023, has given us a solid foundation to continue with the next chapter of our transformation. I would like to thank my colleagues for all of their hard work and dedication which describes our focus on positive longevity,enabled us to achieve so much during these eventful 12 months.
How do the steps Aegon is taking align with the company’s sustainability ambitions?
At Aegon, we believe that sustainability is key to creating a fair and how we seek to be a force for goodhealthy society and getting the best long term results for our customers - enabling them to live their best lives. In 2023, we continued to make progress with our net-zero commitments and our broader sustainability plans. In June, we announced an additional climate goal to reduce the carbon intensity of our directly held real estate investments. We are also taking steps to improve our own climate impact by addressing our operational footprint. And, alongside our range of products offering competitive investment returns, we also increasingly offer responsible investment options for clients wishing to incorporate sustainability into their investment strategy.
Meanwhile, inclusion and diversity (I&D) continues to be an important focus for the company and its stakeholders. It is also an area where we can make an overall positive difference, both as an employer and as a partner in our local communities.
In 2023, Aegon donated more than EUR 7.5 million to community projects to promote financial and social inclusion. In the same spirit, thousands of our colleagues gave their time to good causes in their local communities as part of Aegon’s inaugural company-wide Force for Good Day in May.
I also believe that, as a major financial services company, Aegon has a wider responsibility to help those in need around the world whenever and wherever we can. With this in mind, we donated to relief efforts following the earthquake in Turkey and Syria, and the devastating wildfire in Maui, Hawaii.
What does 2024 hold for Aegon?
2023 was an important year in which we took great steps forward together as a company, but there will be more to come in 2024. I am confident that Aegon now has a robust corporate structure that will enable us to build market-leading businesses. We also have the financial flexibility to invest where we see opportunities for growth. Together with the talent we have across all our businesses, this means that we can remain fully focused on delivering value to all our customers, shareholders, and other stakeholders throughout their lifetimes. Renewing our purpose provides a common thread that will guide our vision and strategy. This process has also inspired Aegon’s new employee behaviors,
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8 | Annual Report on Form 20-F 20212023
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Our strategy How we execute our purpose
![]() | About Aegon Governance and risk management Financial information Sustainability information | |||
Guided by our purpose
Our purpose of Helping people live their best lives
Our solutions for investment, protection, and working inretirement are designed to help our customers make the age of longevity
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Building on our strengths
One of our most important resources at Aegon Annual Report on Form 20-F 2021
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Aegon supports this strategy at the holding company level by outlining strategy, allocating capital, defining risk appetite, setting targets, and driving strategy implementation. We also take a centralized approach to determining functional mandates, setting policies and frameworks, and providing shareholder services. In tandem with this, Aegon’s businesses develop local strategies and operating environment presents new challenges but also new opportunities. Byplans within the company’s strategic framework and ensure their implementation.
Clear strategic focus, executed through our businesses and partnerships
Since 2020, Aegon has been taking structured steps to strengthenbecome a more focused company with an improved operational performance, a stronger balance sheet, and an enhanced risk profile. The 2023 completion of the combination with a.s.r. concluded the first chapter
Investment proposition
of Aegon’s transformation journey, enabling us to accelerate the execution of our business, we are adaptingstrategy.
In the Americas, Transamerica, the largest of Aegon’s businesses, is a leading provider of life insurance, retirement, and investment solutions, serving millions of customers with a strong track record of making financial services available to this evolving landscape while playing a key role in shaping a thriving and sustainable society.
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Strategic Assets in our three core markets, as well as our three growth markets, and Aegon Asset Management. We want to be seen as leading with contemporary propositions and outstanding, digitally enabled, customer service. The organization of Aegon’s core and growth markets is explainedin the next column.
10 | Annual Report on Form 20-F 2023
Our strategy | ||||
In Transamerica’s Workplace Solutions division, we aim to increase earnings on in-force from the retirement business to between USD 275 million and USD 300 million by 2027. The retirement business provides recordkeeping, administration and investment services for defined contribution, defined benefit and non-qualified plans, and advice to plan participants and retirement investors. It focuses on mid-market participants and the pooled plan solutions market in the US. Transamerica is also growing its offering of ancillary products and services to plans, participants and retirement investors.
The US Financial Assets
In the United Kingdom, Aegon focuses on three attractive growth markets – China, Brazil,providing pension, savings and Spain & Portugal – thatinvestment solutions for over 4 million customers, working with financial advisers and employers. Aegon UK is the UK’s largest investment platform, providing workplace pension schemes to over 9,000 employers. In the UK, we aim to sharpen our competitive edge by improving the digital experience for customers, advisers, and employers. In August, Aegon announced an extension of its strategic partnership with Nationwide Building Society (NBS), under which NBS’ financial planning teams will move to Aegon UK. In addition, Aegon UK will continue to access through our successful partnerships. Together with our partners, we will develop these businesses and captureprovide the growth potential they provide while leveraging ourplatform on which NBS members manage their investments.
Our global expertise and capabilities.
the completion of the transaction with a.s.r. marks the beginning of the related asset management partnership with a.s.r. The partnership will strengthen Aegon AM’s position as a provider of distinct capabilities in retirement-related investment solutions, alternative fixed income investments, and responsible investing.
Aegon will also continue to expand its strong partnership businesses by making the most of their scale and untapped potential. In Spain & Portugal, we will continue to grow the business through our long-standing bancassurance partnership with Banco Santander. We will also invest further in China and Brazil, where we aim to generate growing volumes and earnings, including by expanding distribution. Aegon announced in Q3 that it increased its economic stake in the local joint venture in Brazil to 59.2% to underline its commitment to this market.
In the Netherlands, Aegon completed the transaction to combine its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. in July 2023. As part of the transaction, Aegon received EUR 2.2 billion in cash proceeds and a 29.99% stake in a.s.r. Aegon outlined the framework for its almost 30% shareholding at its June 2023 Capital Markets Day. In principle, Aegon will hold the stake until the a.s.r. share price reflects the intrinsic value, unless value-creating opportunities present themselves.
Transamerica Life (Bermuda), Aegon’s provider of life insurance products and services to affluent and high-net-worth individuals predominantly in Asia and beyond, is activemanaged as a Financial Asset to maximize value and free up excess capital. Its universal life portfolio was internally reinsured to Transamerica in 2022.
A clear model for achieving our vision
We aim to create a resilient, future-fit business: a well-managed and well-respected company that delivers value for its stakeholders, including attractive capital returns to shareholders. While our strategy directly supports this vision, our ambition goes beyond operational or financial performance, as we also aim to have a positive impact on society and the environment.
Achieving this overall vision will involve building on our existing strengths; first and foremost, our proven ability to operate trusted brands and leading retirement platforms in our corechosen markets. Aegon provides advanced retirement and growthasset management solutions, and life insurance and protection products. We deliver these by leveraging our strong foundations in large established markets, as well as in France, Germany, Hungary,under-penetrated, growing markets.
With this approach, Aegon is well placed to benefit from favorable structural trends and Japan.
Annual Report on Form 20-F 2023 | 11 |
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in locations where demographic realities require customers to save more. In all our strengths
In exchange for Aegon’s products and services, our customers pay fees or premiums to our businesses, or make deposits on certain pension, savings, and investment products. We earn returns for our customers by investing these premiums and paying out claims and benefits to address the promises and guarantees associated with our insurance products. For non-insurance products such as retirement plans or saving deposits, customers make withdrawals based on pre-agreed terms and conditions. We use the remaining funds to cover our expenses, support new investments, and return profits to our shareholders.
Aegon’s 23.9-million-strong customer base provides a robust foundation from which to expand and develop the business. As a diversified international company, we have the reach to deliver our propositions to a broad range of customers, who will increasingly benefit from more sophisticated and tailored digital services and advice. Our global, integrated asset management business is also an important driver of our continued success, enabling us to grow our share of the overall Assets under Administration over time.
Value-creating capital allocation
Aegon operates a focused business portfolio to deliver success for the company and its stakeholders on the way to realizing its vision. Through our fully owned businesses and partnerships, we strive to be seen as a leader that offers contemporary propositions and outstanding, digitally enabled customer service.
In the US, Aegon’s capital allocation approach centers on reallocating capital from Financial Assets to Strategic Assets. Since the 2020 Aegon Capital Markets Day, USD 1.5 billion has been released from Financial Assets, and we will continue to reduce our exposure to Financial Assets and improve the quantity and quality of our capital generation in the coming years. Additional management actions aim to release another USD 1.2 billion of capital through 2027. The financial flexibility this creates will be prioritized to further reduce exposure to Financial Assets to support additional investment in Strategic Assets.
In April 2023, Aegon UK announced the sale of its UK individual protection book to Royal London. Aegon UK initially reinsured the portfolio to Royal London, and will ultimately transfer legal ownership to Royal London through a Part VII transfer in 2024,
subject to court approval. This supported the strategy to focus on its core Workplace and Retail platform activities in the United Kingdom, as part of Aegon’s ambition to create leading businesses.
In addition, as part of the strategy announced at the Capital Markets Day in December 2020, Aegon has exited various small and niche markets in order to focus on those markets where Aegon is well positioned to create value. This includes the sale of the company’s businesses in Central & Eastern Europe to Vienna Insurance Group AG, which took place over several stages and was completed in June 2023. In addition, Aegon announced in July, the sale of its 56% stake in its business in our different markets, together with corresponding actions,India to Bandhan Financial Holdings Limited. The transaction was completed on February 23, 2024.
Strong balance sheet
Maintaining a strong balance sheet is a prerequisite for Aegon to achieve its overall vision. It allows us to build leading, advantaged businesses that will bestcan actively contribute to profitable growtha healthier, more equitable society, and create value for our customers shareholders, and other stakeholderswider stakeholder base in the years ahead.
Moreover, we are stepping up our efforts to develop our people, hire new talent where appropriate, and invest in execution capabilities and skills. Intensifying the organizational rhythm in this way allows Aegon to shift to a high-performance culture.
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Transamerica continues to take in-force management actions on Financial Assets, which aim to release the additional USD 1.2 billion of capital before year-end 2027. The legacy Universal Life Financial Asset portfolio includes a book of Secondary Guarantee Universal Life (SGUL) policies. In July 2023, Transamerica agreed to reinsure USD 1.4 billion of statutory reserves of the SGUL portfolio to Wilton Re. The transaction reduced the business’ exposure to mortality risk while covering approximately 14,000 policies and make Aegon more resilient, we12% of the total reserves backing this product line. The transaction generated approximately USD 240 million of capital, of which USD 50 million is from reduced capital requirements. Transamerica is using this capital to support its ongoing management action of buying back up to 40% of the face value of universal life policies that are reducing our gross financial leverage.owned by institutional investors. Together with the previous reinsurance transaction undertaken at the end of 2021, a total of 30% of the net amount at risk and 25% of the statutory reserves backing the SGUL portfolio have now been reinsured.
12 | Annual Report on Form 20-F 2023
Our strategy | ||||
For its Long-Term Care Insurance portfolio, Transamerica has removed the remaining morbidity-improvement assumption and increased the inflation assumption to align with market best practices. Associated with these assumption changes, Transamerica has set up a new rate-increase program seeking approvals for additional actuarially justified-premium rate increases with a combined value of USD 700 million. In 2021, Aegonthe variable annuity portfolio, the dynamic hedging program continued to pursueperform well in 2023, with a rangehedge effectiveness ratio of actions to strengthen its capital position99% and reducewith the volatility of the company’s solvency ratios. To further reduce our risk exposure, we launchedcapital position partly offset by a lump-sum buy-out program for certainvoluntary reserve. The reserve better aligns the recognition of fees on the variable annuities policies, and webase contract with the time at which they are implementing a rateearned.
The execution of Transamerica’s strategic plan has the ambition to result in an increase program for long-term care policies. Furthermore, we have expandedin the hedging of our legacy variable annuity block, which will allow uscapital generation from the in-force Strategic Asset portfolio. Transamerica plans to more actively consider a broader range of options for this block of business. We have also reinsured an additionalreinvest part of its earnings on in-force from Strategic Assets in profitable new business opportunities to secure long-term growth. This is anticipated to result in a gradual increase in operating capital generation from Strategic Assets to fund growing remittances to the longevity exposureholding company. Transamerica is targeting mid-single-digit growth in its remittances over the Dutch Life insurance portfolio andmedium term, from a portfoliolevel of universal life secondary guarantee policiesUSD 550 million in the US Life business, with both actions further improving the risk profile of the company.
Growing capital distributions
Aegon’s dividends aim to grow in line with its sustainable free cash flows. AdditionalAny capital deployment decisions will consider our deleveraging target, as well as planned management actions to improve and de-risk the company. Aegon seeks to return
We remain disciplined in our management of capital, and any surplus cash flowsflow not used for value-added growth opportunities will be returned to shareholders over time, as demonstrated by the share buyback programs executed in 2023. In January 2023, Aegon repurchased common shares for an amount of EUR 42.5 million in relation to obligations resulting from share-based compensation plans. Furthermore, the company returned surplus cash capital to its shareholders over time, unless we invest itthrough a EUR 200 million share buyback executed in value-creating opportunities, which are subjectthe first half of 2023. Following the transaction with a.s.r., Aegon also initiated a EUR 1.5 billion share buyback program to strictoffset the dilutive effect of the transaction on free cash flow per share. The program commenced in July 2023 and 54% of the share buyback program had been completed at the end of 2023. In addition, Aegon intends to reduce its gross financial and non-financial criteria.leverage by up to EUR 700 million.
Aegon’s re-domiciliation to Bermuda |
Following the transaction with a.s.r., Aegon no longer has a regulated insurance business in the Netherlands. This has resulted in a significant shift in our geographic footprint, with more than 99% of the company’s business activities now taking place outside the European Union1 and therefore not subject to the EU Solvency II regime. |
Following consultation with the members of the College of Supervisors, the Bermudian financial services regulator, the Bermuda Monetary Authority (BMA), informed Aegon that it would become the company’s group supervisor if Aegon’s legal domicile were transferred to Bermuda. Bermuda’s highly regarded regulatory regime has been granted equivalence status by both the European Union and the United Kingdom, and it has been designated as a qualified and reciprocal jurisdiction by the National Association of Insurance Commissioners in the United States. We have agreed transitional arrangements with the BMA to provide shareholders with the necessary stability in our capital management framework. For more information on the transitional arrangements, we refer to “Regulation and supervision” on page 91. |
In September, we moved our legal seat to Bermuda, which required converting our legal form from a Dutch N.V. into a Bermuda Ltd. As a result, our governance approach became subject to Bermuda law. We have ensured that the interests of Aegon and all its stakeholders continue to be taken into account and that Aegon applies recognized international governance standards while preserving the most material governance principles while also recognizing the change in our business perimeter. The new governance structure includes the move to a single- tier Board with Non-Executive Board members and the CEO as an Executive member. Further details about our governance arrangements can be found on our website. |
The transfer of Aegon’s legal seat to Bermuda also allows us to maintain our headquarters in the Netherlands and remain a Dutch tax resident. We have also maintained our listings on Euronext Amsterdam and the New York Stock Exchange (NYSE). |
1 | Based on total investments on balance sheet on December 31, 2023. |
Annual Report on Form 20-F 2023 | 13 |
About Aegon Governance and risk management Financial information Sustainability information Sustainability Sustainability is a central element of our strategy and value creation approach. At Aegon, we believe that people can only live their best lives and seize the opportunities of a longer life in a healthy, livable, and equitable world. Our commitment to sustainability – and how we deliver on it – is shaped by our unique position at the center of the financial services value chain. As an investor and provider of financial products and services, we have a responsibility to address environmental and societal issues that affect a broad range of stakeholders and will shape our future society and future performance. 14 | Annual Report on Form 20-F 20212023
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Enriching and governance (ESG) criteria in our strategy.
Aegon has a dedicated sustainability approach that is integral to contribute to society at largeits strategy and play our part in addressingtakes into account the planet’s greatest challenges.
Our approach is underpinned by our sustainability approach.commitments, which include the UN Global Compact (UNGC), the UN Principles for Sustainable Insurance (PSI), and the Principles for Responsible Investment (PRI). The GSB’s core function isfull list of our commitments can be found on our website.
In 2023, we also took steps to steerfurther integrate sustainability into our strategy and strengthenoperations. We see our employees as the starting point for driving our sustainability agenda, acrossand developing their understanding of key sustainability issues is a prerequisite for achieving our country units,goals and it willpreparing for future regulations, risks, and opportunities. In addition, Aegon’s investors increasingly expect the company’s leaders to be supported byeducated on sustainability issues and to demonstrate sustainability literacy. In 2023, we made progress towards these goals with the launch of our localSustainability Academy (see text box on the right).
Our sustainability boards. Key actions put forward bycommitments have remained unaltered following the agenda include formulating sustainability-focusedcombination of Aegon the Netherlands with a.s.r. and the redomiciliation to Bermuda. Across our business, we remain committed to our net-zero commitments key performance indicators (KPIs), and targets.
Addressing our priority themes
Climate change and inclusion and diversity (I&D) have been identified by our stakeholders as particularly critical issues that will guide our sustainability agenda in the years to come. We continue to monitor best practices for broader sustainability issues and act accordingly, as further described in our ‘Sharing value with our stakeholders’ section (see page 20). In 2021, Aegon became a signatory of the UN Global Compact. We aim to embed its principles into our strategy, culture, and day-to-day operations, as well as through collaborative projects. As a signatory, we remain firmly committed to supporting the UN Sustainable Development Goals, with a focus on the goals that are most relevant to our business and strategy, and to whichpriority themes where we can make ahave the most significant contribution.
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Climate change
As an insurance company,international financial services group, Aegon canis well positioned to support thesociety’s transition to a climate-resilient economy and a net-zero world using both sides of its balance sheet. world. We have an opportunity to finance the upsideenergy transition and climate resilience through our own investments and our responsible investment framework, while mitigatingframework. We also have a responsibility to manage our investments to address potential climate-related risks to our portfolio. As these risks can affect the downsidevalue of our business, we continue to respond to customer demand by integrating ESG intobroadening our risk management processes,product portfolio to offer customers a choice of products that can help accelerate the path to net-zero and have climate resilience built in. For example, the savingsCommercial Property Assessed Clean Energy (C-PACE) asset-backed securities, address the need to engage ordinary households and protection solutionsindividuals in the transition to a more climate-conscious society.
Launching our Sustainability Academy At the end of 2023, Aegon launched its Sustainability Academy, a company-wide initiative to bridge the gap between employees’ current awareness of sustainability and the degree of understanding required to fully support the company’s purpose and sustainability ambitions. This global initiative also supports our talent attraction and retention objectives by promoting Aegon as a responsible employer. The Sustainability Academy provides Aegon employees worldwide with a wide range of learning and development resources focused on sustainability, including webinars and e-learning courses The curriculum focuses on Aegon’s priority themes of climate change, and inclusion and diversity. The Academy also includes dedicated training modules for Aegon’s senior leaders, offered as part of the Best Life Leadership program. The Sustainability Leadership module aims to engage Aegon’s top 300 leaders in developing their understanding of relevant sustainability issues, managing sustainability-related risks, and capitalizing ethically on the value creation opportunities stemming from being a more sustainable company. A further module addresses the results of our international I&D survey and fosters skills for our senior population on leading through intergenerational difference with a leading London Business School academic and the Dutch United Nations Generation Z representative, preparing Aegon for the workforce of the future. |
We are also taking steps to improve our own climate impact by addressing our operational footprint. The specific approaches Aegon has adopted to meet its climate change commitments are discussed on the next page.
In today’s shifting sustainability landscape, we provide. The influence, both positivealso recognize that our stakeholders hold a broad spectrum of views on the topic of climate change. While Aegon aligns with the scientific consensus on climate change and negative,is actively working to address this critical issue, we can have as an investor is particularly significant,continue to respond to customer demand and we have committedoffer our customers a choice between sustainability-related products and alternatives.
Annual Report on Form 20-F 2023 | 15 |
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Our net-zero commitments
Aegon has made a company-wide commitment to transitioning ourtransition its general account investment portfolio to net-zero greenhouse gas (GHG) emissions by 2050. Relatedly as further evidence of its corporate commitment, Aegon Ltd. is a signatory of the Net-Zero Asset Owner Alliance (NZAOA).
To drive progress toward our 2050 (see page 14).
Further to our initiativescompany-wide net-zero commitment, our UK business has committed to stimulate hybrid working – for instance reductions in leased space across the US in 2021 – there has also beenachieving net-zero financed emissions from its pension funds by 2050.
Climate risk analysis
Undertaking regular climate risk analysis is a temporary benefit from fewer employees in the office
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Operational footprint
Aegon does not maintain energy-or resource-intensive processes as part of its direct business operations. Our operational carbon footprint is small relative to the scope of our investment activities. Nevertheless, we have set firm targets to reduce the carbon footprint of our operations, which is primarily related to greenhouse gas emissions from the natural gas and electricity used by our offices.
Aegon’s 2025 climate change commitments § Reduce the weighted average carbon intensity (WACI) of our corporate fixed income and listed equity general account assets by 25% by 2025. § Invest USD 2.5 billion in activities to help mitigate climate change or adapt to the associated impacts by 2025. § Engage with at least the top 20 corporate carbon emitters in our portfolio by 2025. § Reduce the scope 1 and 2 carbon intensity of our directly held real estate investments by 25% by 2025. § 25% reduction in absolute operational carbon emissions (scope 1 and 2) by 2025 against the 2019 baseline. |
The first phase of our targets covers the period up to December 31, 2024. The second phase of Aegon’s near-term emissions reduction plan will cover the period from 2025 to 2030, and the corresponding targets will be finalized in 2024.
By the end of 2023, Aegon had achieved a 68% reduction in its operational carbon footprint compared to the 2019 baseline, well ahead of the target of a 25% reduction by 2025.
The impact of less operational properties together with changing work patterns has had a significant impact in reducing our overall facilities footprint. We will continue to monitor the impact of hybrid working on our carbon footprint.
Inclusion and diversity
At Aegon, our vision for inclusion and diversity approach(I&D) underpins our purpose and strategic goals. Our promise to help people live their best lives extends to the many, not the few, and we work hard to further foster equal treatment and opportunity for all stakeholders. This includes our existing employees and customers, as well as job seekers, and future customers who may have traditionally been underserved in financial services.
Driving financial inclusion
World Financial Group (WFG) is designed to ensure our policiesan insurance agency with a distribution network of more than 74,000 independent agents, a subsidiary of Transamerica and actions permeate all areas and levelspart of the company. Together with the company’s leadership, Aegon’s employees and other stakeholders share accountability for building an inclusive and diverse organization. In 2021, we held Strategic People Discussions centered on ensuring inclusion and diversity within our talent pipeline, with a focus on underrepresented and young talents. These conversations have created opportunities for aspiring leaders to participate in mentorship programs, stretch assignments,Aegon group development programs, and conversations with Management Board members to raise their profiles.
Scope 1 covers direct emissions from |
16 | Annual Report on Form 20-F 20212023
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WFG has been bridging the process of enhancing our sustainability reporting with a viewgap between lower-income households and financial inclusion for over 20 years by offering access to optimizing ouraffordable product choices, financial education, and the ability to adaptcreate a financial strategy. WFG fulfills Aegon’s purpose of Helping people live their best lives every day through helping countless people from all social and economic backgrounds.
WFG, since its founding, has worked to changing reporting requirementspromote and enable financial literacy in underserved communities while providing unique opportunities to reportindividuals across North America. Because of the inclusive approach, people from all social classes gain financial understanding and learn ways to create a better future for themselves and their families. WFG focuses on a voluntary basis. We are developing a Target Operating Model, whereby sustainability reporting is integrated into our company-wide finance reporting function, leveraging its existing processesoutcomes for their clients and best practices. This includes ensuring Aegon is ready for limited assurance for external non-financial reporting over 2023, given the European Commission’s incoming Corporate Sustainability Reporting Directive.
Building an inclusive and diverse work environment
At Aegon, we recognizeare working to build an inclusive and diverse culture that encompasses all aspects of the employee experience, starting with talent attraction. Our approach includes fostering equal treatment for everyone and providing career opportunities to all our responsibilityemployees.
In 2023, Aegon launched its first international I&D Survey. The survey, with relevant observations for the entire company, provides useful data and insights for developing our I&D strategy at a company and business-unit level. And the outcomes will help to ensurecapture I&D data directly through the Workday platform, which will be analyzed as part of the Global Employee Survey. The I&D Survey includes questions about the demographic profile of respondents and their experiences in the company. The survey received an overall response rate of 82% and generated approximately 2,000 comments from employees. Key findings from the survey are presented in the box out on page 30.
Our learnings from this and future I&D surveys will be critical in strengthening our I&D approach over the coming years. In the United Kingdom, for example, Aegon is using data and insights from the survey and other sources to develop a more inclusive talent attraction strategy and to evaluate the success of recruitment campaigns against our purpose and I&D objectives.
Aegon’s leaders play an important role in shaping an open and inclusive culture. In 2023, we launched a new internal podcast series, “Tell Your Story”. The series includes audio specials in which Aegon’s senior leaders share their personal insights on inclusion and diversity, where their passion for I&D comes from, and how they promote inclusion through their work. Podcast contributors have included Matt Rider, Chief Financial Officer, and Elisabetta Caldera, Chief Human Resources Officer.
Another key I&D initiative at Aegon is the Race and Cultural Diversity (R&CD) Community, which aims to help create an inclusive environment where colleagues understand diversity and the benefits it brings. Linked to the concept of “allyship” – taking opportunities to support colleagues who don’t necessarily feel included – the R&CD aims to create a network of I&D allies across Aegon. Supported by members of the Executive Committee and Aegon’s leadership team, the community organizes regular online speaker events and Q&As with special guests, as well as “culture cafes” (quarterly events with information on cultural and religious festivals such as Diwali, Carnival, and Ramadan). The R&CD community holds twice-yearly townhall sessions to help colleagues become better allies. Allies also provide feedback on what they would like to see at future R&CD events.
In recent years, Aegon has paid increasing attention to the gender imbalances that persist in the financial services industry, a traditionally male dominated industry. In 2023, we remained committed to meeting the standards and requirements for gender diversity requirements of our respective markets. Headquartered in the Netherlands, Aegon continues to comply with the Gender Diversity at the Top Act. Introduced in 2022, the Act requires Aegon entities incorporated in the Netherlands to have gender-balanced representation on their corporate boards, a requirement that the company met in 2023.
In the US, our Transamerica business continues to be recognized for its stance on gender equality and other aspects of I&D. In 2023, Transamerica was listed as one of the top 75 US-based companies for women in leadership by Seramount, a professional services and research firm focused on diversity, equity, and inclusion (DEI). Seramount recognized Transamerica as a company that champions the advancement of women in the workplace, including succession planning, profit-and-loss roles, gender pay parity, support programs, and flexibility programs. In addition, 2023 saw the Human Rights Campaign award Transamerica a score of 100% on their 2023 Corporate Equality Index (CEI), thereby recognizing the business as a “Best Place to Work for LGBTQ Equality” for the sixth year in a row.
Transamerica’s I&D approach is further enriched by the World Financial Group (WFG) distribution network, which is focusing increasingly on representing the diverse communities it serves. WFG’s licensed independent agents represent more than 75 different spoken languages. In addition, more than 50% of the agent population is female and 65% identify as members of traditionally underrepresented racial/ethnic groups.
Driving our sustainability approach
At Aegon, we use two main mechanisms to drive our sustainability approach, namely responsible investment and offering alternative products with sustainability embedded.
Annual Report on Form 20-F 2023 | 17 |
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Responsible investment
Reducing the carbon intensity of our investments do not negatively affect society oris the planet. We apply this ethossingle biggest contribution that we can make to our own general account investments and use our influence to encourage similar standards in the investment decisions of our customers. By taking an active approach toclimate transition as a business. Our responsible investment we seek to minimize risks to our business and explore ways to serve the interests of our customers and society at large.
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Moreover, the six Principles for Responsible Investment provide guidance for Aegon’s Responsible Investment Policy. In 2023, the policy was updated and now includes concrete actions on engagement, exclusion, and/or funding criteria in a number of targeted responsible investment focus areas: climate change, human rights, and our tobacco industry exclusions. Aegon’s Responsible Investment Policy will be regularly reviewed to take into account changing industry regulations, best practice, and stakeholder expectations.
In addition, Aegon AM is a member of the Net-Zero Asset Manager Initiative (NZAM), a group of approximately 300 asset managers committed to achieving net-zero greenhouse gas (GHG) emissions by 2050 at the latest.
Responsible investment developments in 2023
The responsible investment landscape continued to evolve in 2023, with a focus on managing financially material climate-related risks in our portfolios and accelerating the low-carbon transition through investment opportunities. During the year, we continued to innovate investment solutions in Aegon AM’s active global investment business.
In its Top Emitter Engagement Program (TEEP), Aegon AM engaged with almost 300 issuers on climate change concerns in 2023. This included 22 companies specifically identified through the Carbon Disclosure Project’s ‘Non-Disclosure Campaign’, which Aegon signed and actively supported. As part of the TEEP we also identified the top 20 corporate carbon emitters in General Account portfolios and targeted them for engagement with the objective of obtaining commitments to set science-based net-zero targets. By the end of 2023 we had engaged with 19 of those companies, well on track to achieve our 2025 target.
Another issue of growing concern to the investment community is the loss of biodiversity and other nature-related impacts, and their linkage to climate change. In 2023, Aegon UK and Aegon AM joined the Nature Action 100, a global initiative focused on driving greater corporate ambition and action to reverse the loss of nature and biodiversity. Aegon AM considers biodiversity impacts as part of its ESG integration approach. It also considers key negative impacts related to biodiversity, including activities that negatively
impact biodiversity-sensitive areas, emissions to water, and hazardous waste, where such data is reliably available.
In 2023, Aegon AM also began the process of reclassifying the Aegon Global Sustainable Sovereign Bond Fund (GSSF) from Article 8 to Article 9 under the Sustainable Finance Disclosure Regulation (SFDR), thereby certifying that the fund has as its objective sustainable investment in line with the UN Sustainable Development Goals (SDGs).
For more information about the role of Aegon AM in Aegon’s responsible investment activities and approach, please refer to the Aegon AM Responsible Investment Framework documents available on the Aegon AM website.
Meanwhile, our US business, Transamerica, continued to make progress on our 2025 commitment to invest USD 2.5 billion in activities that help society mitigate climate change or adapt to its impacts. Approximately USD 1.8 billion has been invested toward this goal and these investments are subject to at least equal screening criteria as our non-goal investments. To learn more about Transamerica’s investment as part of this commitment and their impact on society, see “Sharing value with our stakeholders in 2023” on page 34.
Sustainability in our products
At Aegon, we look for opportunities to integrate sustainability into our product development process and across our product ranges. We seek to offer our customers the choice of sustainable alternatives such as climate transition portfolios aligned with net zero objectives and products focused on investing in sustainable economic activities. To inform and support our product development, we are increasingly conducting customer research on sustainability and ESG investment strategies, including through customer surveys and discussion panels.
In 2023, Aegon expanded its range of sustainability-focused products. In the first quarter of 2023, Aegon AM increased access to sustainability products for its customers, including EUR 100 million of inflows into its Global Short Dated Climate Transition Fund. More broadly, Transamerica continued to integrate ESG considerations into its product offerings, including the launch of several additional ESG sustainable funds in the first quarter of 2023. In December 2023, Aegon AM launched its Global Short Dated High Yield Climate Transition fund.
While offering sustainability-focused solutions is a key component of our product development approach, we remain mindful of the sensitivities surrounding ESG-related financial products and services, ensuring that customers and end-users continue to have access to alternatives.
18 | Annual Report on Form 20-F 2023
Creating sustainable value for our stakeholders in 2023
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Aegon seeks to create long-term value for a wide range of stakeholders, including its customers, employees, business partners, investors, and society at large. In line with our purpose, strategy, and sustainability approach, we see our business as inherently beneficial to society. We believe the value we create as a company is widely shared through our diverse businesses and extensive global workforce. However, we also recognize that certain decisions and actions can also erode value by having a negative effect on our stakeholders or on the environment. Actively identifying and managing potential negative impacts is therefore an integral part of our decision-making, alongside realizing opportunities and positive impacts. Maturing our double materiality approach In 2023, Aegon conducted its second double materiality assessment (DMA). Forming part of our broader risk and strategic analysis activities, our DMA is an important tool for identifying and assessing our impacts, risks, and opportunities that have the potential to influence our strategies and practices at the level of the holding company, and across the businesses. The 2023 assessment was also an important step in preparing for the European Union’s CSRD, which will apply to Aegon from the 2024 reporting year. Our process took into account the European Sustainability Reporting Standards (ESRS) methodology1 adopted by the European Commission in July 2023. | Introducing our DMA topics The table below lists the material topics identified through the DMA process and how they relate to Aegon’s broader sustainability approach. In each case, we describe where the impact of the material topics falls within Aegon’s value chain and how Aegon can contribute to the UN Sustainable Development Goals by addressing the topic. In addition, the table highlights the actions that Aegon took in 2023 in relation to these material topics. Since the DMA was concluded at the end of 2023, these topics will be added to our priority themes of climate change and inclusion and diversity and addressed further in 2024. For more information on Aegon’s double materiality methodology, please refer to page 456. Our DMA approach will be reviewed annually in light of stakeholder input and the latest assessed risks, opportunities, and impacts. In 2024, we will also further evolve and mature our DMA process by conducting deeper analyses of our value chain and broadening our stakeholder engagement approach. |
Double Materiality Assessment Topics
Topic | Climate change adaptation & mitigation | Inclusion and diversity | Employee wellbeing | Customer empowerment | Data security and Privacy | Business conduct | ||||||||
Investments | ✓ | ✓ | ✓ | ✓ | ✓ | |||||||||
Impact in the value chain | Insurance | ✓ | ✓ | ✓ | ✓ | ✓ | ||||||||
Operations | ✓ | ✓ | ✓ | ✓ | ✓ | |||||||||
Supply chain | ✓ | ✓ | ✓ | ✓ | ||||||||||
More information on actions | pages 15, 16, 18, 31, 32 & 34 | pages 16, 17, 24, 26 - 30, 32 & 35 | pages 27-29 | pages 24-26 | pages 26-27 | pages 31, 32, 34 & 35 | ||||||||
More information on Impacts, Risks and Opportunities and associated indicators | pages 462 - 464 | pages 465 - 466 | pages 469 - 471 | pages 467 -468 | page 472 | pages 473 - 475 | ||||||||
Link to SDGs | SDG Topic |
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SDG Targets | 7.2, 7.3, 9.4, 13.1 | 10.2, 10.4, 5.5 | 3.4 & 8.5 | 3.8 & 8.10 | 16.10 | 16.6 |
1 | The DMA uses standards that differ from, and are generally broader than, the definition of materiality for Aegon’s SEC reporting obligations. |
20 | Annual Report on Form 20-F 2023
Creating sustainable value for our stakeholders in 2023 | ||||
Understanding and engaging with our stakeholders
Identifying the issues and topics that matter to our stakeholders is an important starting point to guide our value creation approach.
At Aegon, we engage with our stakeholders to understand their expectations of us. Our discussions with stakeholders take place across various channels, which are organized at a company-wide and business-unit level according to the requirements of our respective stakeholder groups.
The table below highlights the respective expectations of Aegon’s key stakeholders, as well as the different platforms and channels used to engage with these groups. We also look at the key areas of focus for our stakeholder engagement in 2023, and the steps being taken to address the views and feedback that we receive through our engagements.
Customers | Employees | Partners and suppliers | Investors | Society | ||||||||
Stakeholder expectations and concerns | § High-quality products and services that support financial wellbeing § Fairly priced, accessible products § Quality customer service; (digitally enabled) accessibility § Protection of data security and privacy | §Good working conditions §Flexible working; healthy work-life balance §Opportunities for career development § Equal treatment and opportunities for all | §Good business conduct § Fair and timely payments | § Strong and sustainable capital position § Predictable, competitive financial result § Attractive, sustainable capital distributions to shareholders § Reliable returns to bondholders | §Supporting climate transition (through responsible investments) §Commitment to reducing operational and carbon footprint (including net-zero commitment) §Commitments to supporting inclusion and diversity §Supporting worthwhile causes in Aegon’s local communities | |||||||
How we engage | § Customer surveys (led by business units) § Customer panels to test ongoing product development § Omnichannel customer service portals in our respective markets § Customer complaints channels § Public websites | §Town halls at company and business-unit level §Conduct quarterly Global Employee Survey with all employees § International I&D Survey §Speak Up program §Employee Resource Groups (ERGs) § Aegon Works Council | §Encourage suppliers to join the responsible procurement program §Require adherence with Vendor Code of Conduct | § Capital Markets Day for analysts and investors § General Meetings of shareholders (annual and extraordinary) § Regular engagements with institutional investors and equity analysts § Participation at financial market conferences and roadshows § Public communications in the form of press releases, interviews and media engagement | §Community Investment program | |||||||
How Aegon is addressing stakeholders’ needs and expectations | § Product innovation (see page 25) § Investing in (digital) customer service channels and platforms (see pages 23 and 24) § Improving accessibility of products and services, including by extending reach to new customer groups (see page 26) § Via our information security and privacy control framework | §Addressing employee concerns in town halls and regular staff meeting (see page 29) § Measuring Aegon’s performance on employee engagement (see page 29) §Measuring Aegon’s performance on inclusion and diversity (see page 30) | § Setting clear and transparent targets and delivering on these targets § Providing regular updates on financial and strategic performance § Publishing ad-hoc updates on strategic and financial developments as needed | §Reducing our operational and investment impact (see page 34) §Driving inclusion and diversity in our communities (see page 35) |
Annual Report on Form 20-F 2023 | 21 |
About Aegon Governance and risk management Financial information Sustainability information How we create value for our stakeholders Our inputs Financial ● Shareholders’ equity: EUR 7.5 billion ● Gross financial leverage: EUR 5.1 billion ● Group Solvency Own Funds: EUR 14.3 billion ● Group Solvency Capital required: EUR 7.4 billion Manufactured ● Our product mix and digital platforms ● Insurance service result: EUR 342 million ● Gross deposits: EUR 169 billion ● Fees and commissions received: EUR 2.2 billion ● New business strain: EUR 798 million ● Revenue-generating investments: EUR 826 billion Intellectual ● Internal processes, systems, and controls ● Knowledge and expertise Human ● Number of employees: 15,658 ● Amount spent on training and development: EUR 5.5 million ● Talent management ● Number of tied agents: 625 Social and relationship ● Number of customers: 23.9 million ● Customer experience programs ● Responsible sourcing and investing philosophy ● Brand equity, purpose, and values ● Relationship with intermediaries, business partners, suppliers, and other key stakeholders (e.g. regulators and NGOs) Natural ● Our commitment to achieving net-zero in 2050 ● Total energy used by company: 40,744 MWh Aegon’s business model Claims and benefits Investments Distribution Solutions development and pricing Tune in Force for good Step up Helping people live their best lives Solutions development and pricing Development of our financial solutions begins with our customers. We assess their needs and develop products and services to suit. We then estimate and price the risk involved for us as a provider. Distribution Our products and services are then branded and marketed, before being distributed via intermediaries that include brokers, banks, and financial advisors. We also sell to our customers directly. Investments In exchange for products and services, customers pay fees or premiums. On certain pension, savings, and investment products, customers make deposits. We earn returns for our customers by improvinginvesting this money. Claims and benefits We pay out claims, benefits, and retirement plan withdrawals. We use the remaining funds to cover our expenses, support new investments, and deliver profits to our shareholders. 22 | Annual Report on Form 20-F 2023
Creating sustainable value for our stakeholders in 2023 Our outputs Outcome for our stakeholders Financial ● Dividends to shareholders: EUR 495 million ● Share buybacks: EUR 1,029 million ● Interest payments to bondholders: EUR 580 million ● Group Solvency ratio: 193% ● Free cash flow: EUR 715 million ● Operating result: EUR 1,498 million Manufactured ● Total retirement outflows: EUR 31.2 billion1 ● Payments to business partners2: EUR 2.4 billion Intellectual ● Our product mix and digital platforms ● Value creating initiatives Human ● Total employment cost: EUR 1.7 billion ● Women in senior management: 38% ● Employee engagement score: 77% Social and relationship ● Assets under management in Responsible Investment Solutions: EUR 134 billion ● Business partnerships and reputation ● Corporate and other paid taxes: EUR 637 million Natural ● Weighted average carbon intensity relating to our general account investment portfolio: 338 metric tons CO2e/EURm revenue for corporate fixed income + listed equity ● Operational carbon footprint: 13,246 metric tons CO2e Customers Aegon seeks to provide its customers with a broad mix of investment, protection, and retirement solutions. We also aim to provide customers with a high-quality service and an enjoyable and efficient customer experience. Through our focus on product innovation, we strive to meet the changing needs of our global customer base. Our approach to product development includes taking steps to include financially and socially diverse customer groups that are comprised of vulnerable customers, minorities, and others traditionally underrepresented in financial services. We also aim to provide honest and transparent product information and to protect data security and privacy during customer interactions. Employees Aegon’s workforce includes full- and part-time employees, as well as agents and other contractors. In all cases, we strive to maintain high levels of employee engagement and wellbeing, and foster a supportive and welcoming work culture. As our workforce’s needs evolve, we pay close attention to attracting, developing, and retaining talent, to ensure our people reach their full potential and live their best working lives. As part of this approach, we seek to foster an inclusive and diverse work environment where people from all backgrounds are treated fairly and equally, and are able to bring their authentic selves to work. Business partners Aegon strives to maintain positive, well-managed relationships with its suppliers and other value chain partners, including distributors, joint venture partners, reinsurers, and sourcing partners. This includes, on the one hand, our focus on ensuring fair pay and working conditions for professionals at the various stages of our value chain. It also includes cultivating positive long-term business relationships that reflect our purpose and behaviors, including our efforts as a company to address climate change and inclusion and diversity. Aegon’s Vendor Code of Conduct is an important tool that enables Aegon to drive alignment with our partners on these issues. Investors Supported by a resilient and sustainable business model, Aegon seeks to provide a consistent and attractive return on investment to its global investors, who include both shareholders and bondholders. Our approach includes paying regular dividends and conducting other forms of appropriate capital distributions to our equity investors, who may also derive value from the performance of our shares, while our bondholders derive value from regular interest payments. Society Aegon’s products and services help to reduce dependency on public pension systems and increase the financial stability of society. At the same time, our relationship with our communities and society at large is an important conduit for addressing key societal and environmental issues, including climate change and social inclusion. Our efforts to support the climate transition, and I&D are embedded in our Global Responsible Investment Policy and Global Community Investment Framework, for example. We also aim to make a positive contribution to the markets and communities in which we operate by maintaining good business conduct through our businesses, as well as through our tax payments, charitable donations, and volunteer work.1 Includes only US retirement plans. 2 Consists of commissions paid to brokers and other intermediaries, and total spend on goods and services. Annual Report on Form 20-F 2023 | 23
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Sharing value with our stakeholders in 2023
In the following pages of the report, we detail the actions and decisions we took in 2023 at a company and business unit level to create and preserve value for each of our stakeholder groups. In each case, we describe the issues for each group and how this has shaped our approach to value creation and our efforts to help people live their best lives.
Customers
Key performance indicators (KPIs) for this stakeholder group:
KPIs | Target for 2023 | Performance in 2023 | Target for 2024 | |||
Significant fines to address cases of mis-selling (EUR)1 | 0 EUR | 0 EUR | 0 EUR | |||
Proportion of employees who completed the annual Information Security training (%) | No target 2023 | 94% | No target 2024 |
Empowering our customers through accessible, high-quality products and services is an important starting point for achieving our purpose. As people live longer and their lifestyles change, we aim to give them the tools and knowledge they need to build a secure financial foundation, adapt to changing circumstances, and seize future opportunities. Around the world, Aegon serves customers directly through its wholly owned businesses and partnerships, as well as through an extensive global network of advisors and distributors. Improving access and inclusion is paramount: in an evolving and ever-more diverse society, we want to help as many people as possible enjoy the possibilities of a longer, multi-stage life. We also pay close attention to data security and privacy, given the potential of this material topic to negatively impact our customers if not sufficiently addressed.
Empowering customers through quality customer service
At Aegon, we aim to offer high levels of customer service, including throughdesigned around our customers’ changing needs. Our businesses continue to invest in new digital tools and platforms to make our products and by developing direct, close, personal connections.
In 2023, Aegon UK launched its new public website, supporting our existing customers, we are extending our reach to underserved groupsconsumers, advisers, and regionsemployers with a low financial services penetration,clearer and more personalized customer experience. During the year, Aegon UK also launched the new online experience, which was researched and tested by expanding access to our productscustomers, advisers, and
In the US, market, many of whom are first-or second-generation immigrants who may require financial advice in their native language.
Another important Transamerica milestone was the creation of a dedicated customer experience and marketing organization within the Individual Solutions division. The organization will serve as a center of excellence for developing customer engagement and best practice marketing and sales approaches. The division also established a Digital Experience Delivery team to drive the evolution of the Individual Solutions website, mobile apps, and digital capabilities.
1 | Includes any fines for mis-selling in excess of EUR 100,000. |
24 | Annual Report on Form 20-F 2023
Creating sustainable value for our stakeholders in 2023 | ||||
Tracking customer experiences, good and bad
We track our customers’ experiences closely to see how to improve and tailor our service. In the United Kingdom, Aegon measures customer satisfaction through Net Promoter Scores (NPS®). The scores are obtained by surveying consumers, as well as advisers and employers, about their experiences with Aegon. In the US, Transamerica conducts an extensive customer survey process supported by RepTrak, a leading reputation intelligence platform. These surveys provide valuable insights into customer satisfaction at various touchpoints across our US business.
In 2023, Transamerica’s Workplace Solutions division also introduced a series of new intercept surveys. Intercept surveys appear as a short questionnaire to randomly selected participants when they log into their account. The questions gather information about customers’ experiences, and the feedback is used to improve the design and structure of the Workplace Solutions website for a better user experience.
Aegon also provides customers with a range of channels to communicate about their experiences and raise potential issues. We receive and consolidate customer complaints through our respective businesses and seek to resolve issues fairly and efficiently. Developing these channels is an important area of investment.
Aegon oversees its complaints-handling processes centrally and tracks the number of complaints received by the business units through a quarterly reporting process led by the Global Compliance function.
Committed to product innovation
We continue to develop and improve our product offering to meet the changing expectations, life patterns, and requirements of financial services customers. Aegon’s businesses take the lead in product development, reflecting the unique and often specialized needs of customer groups in different regions. In 2023, Transamerica launched a new suite of solutions for Aegon’s US customers.
These include Transamerica Choice Pooled Solutions: offered through Workplace Solutions, the solution allows employers to easily select from a variety of retirement plan structures for their employees, depending on the size of the company and its specific needs. Choice Pooled Solutions has also opened up opportunities for Transamerica’s distribution partners to further reduce the coverage gap by offering solutions for employers of all sizes.
In addition, Transamerica’s Individual Solutions business introduced the new Transamerica Financial Choice IULSM (FCIUL), a universal life insurance product designed to maximize policy value accumulation potential. Individual Solutions also upgraded its Financial Foundation IUL® (FFIUL) product to provide distributors with greater flexibility to support end-users. The upgrade includes an enhanced critical illness benefit to help alleviate financial hardship for its policyowners.
In the United Kingdom, Aegon launched a new flexible individual savings account (ISA) product that allows advisers and rejuvenatedwealth managers to offer individual savers greater flexibility when investing or withdrawing money. ISAs are an important tax-advantaged product in the UK, particularly for individuals affected by the cost of living crisis. During the year, Aegon UK also launched the first phase of its ‘More ways to save’ initiative through its Workplace business, offering customers access to a wider range of savings and investment products. The second phase, called ‘Other Ways to Save’, is set to follow in 2024 and will include a range of savings solutions for families.
Our products are developed and tested in accordance with our company-wide Market Conduct Compliance Policy, which sets out key requirements and guidance on customer suitability and product testing prior to launch, and the Pricing and Product Development Policy. Aegon also has a structured Product Approval and Review Process (PARP) that all business units must follow. This approach is an important safeguard to support responsible marketing and product development practices across Aegon, ensuring suitable and fairly priced products and avoiding potential mis-selling.
Annual Report on Form 20-F 2023 | 25 |
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Driving financial inclusion
At Aegon, we want to help everyone live a long, healthy, and fulfilling life. As our global communities become more diverse, providing socially inclusive products and services enables us to empower a growing number of customers and meet their specific needs. We pay particular attention to the needs of groups that have traditionally been underserved by financial services. This includes taking steps to support vulnerable customers, such as those on low incomes, by making it easier for them to engage with our products through digital platforms.
At Aegon’s Capital Markets Day in June 2023, Transamerica announced an increased commitment to serving the US middle market, a large and highly diverse demographic market with significant (and often unmet) protection and savings needs. The business aims to expand its reach to middle-market customers through the life insurance product portfolio offered by its Individual Solutions business. Transamerica also intends to leverage the extensive distribution network of Aegon’s affiliated insurance agency, World Financial Group Life(WFG), by increasing the number of agents in the field who are dedicated to serving middle-market customers.
In addition to the renewed Aegon UK website, the Future Self Tool, developed by Aegon UK and Disability proposition,the University of Edinburgh, is another recent digital innovation that helps people imagine what life will be like in retirement and plan accordingly. Aegon UK plans to develop the tool further in 2024. It will also make its financial wellbeing toolkit available to employers to help companies engage with their employees about their financial wellbeing and arrange for Aegon to intervene if needed. As a result of Aegon UK’s work in the area of financial wellbeing, it was named “Financial wellbeing champion of the year” at the 2023 Money Marketing Awards.
Data security and data privacy
Data security and data privacy is a material topic that has potential ramifications for Aegon stakeholders. This includes society at large: given Aegon’s central role in the financial ecosystem, incidents such as cyberattacks and data breaches can lead to far-reaching impacts that extend beyond our direct customers, partners, and employees.
Data security
Aegon’s security policy and governance is designed to prevent cyber threats and minimize the impact of any potential disruption for parties. It includes standardized procedures to remediate data breaches and minimize the influence of future privacy-related incidents.
The Second 50: Preparing customers for a longer, multi-stage life |
Longer life spans bring new challenges, but they also keep people younger for longer. Old associations with age – of frailty and inactivity – are being replaced by the expectation that the second half of life can be the most rewarding. |
In 2023, Aegon UK began a new research project to explore the impact of longevity and changing lifestyles on people as they transition into later life. The research draws on Aegon’s own research as well as the latest UK national statistics to identify the different ways in which life after 50 will be different. It suggests areas to consider when planning ahead and outlines the key drivers of change within the period of life that Aegon calls the “Second 50”. The findings have been published in a new report aimed at supporting discussions with financial services customers and advisers about the opportunities and challenges of a longer, multi-stage life. The report can be downloaded on the website of Aegon UK. |
Our internal Global Information Security Policy aims to preserve the confidentiality, integrity, and availability of information by defining minimum mandatory security requirements. The policy applies to Aegon businesses where Aegon has operational control, covering employees and contractors (workforce). Similar standards apply to Aegon’s joint ventures. The policy is supported by mandatory training in data security.
Aegon’s Global Chief Information Security Officer (CISO) is responsible for the execution and oversight of Aegon’s company-wide information security strategy and day-to-day security operations, whereas information security officers are responsible for execution and oversight in all relevant business units.
The centralized core information security team along with dedicated teams in business units are responsible for the execution of security functions in alignment with global and local regulations. The Global Information Security Advisory Counsel (GISAC) supports collaboration between information security functions on a company and business unit level, as well as with other supporting functions, such as Risk, Audit, and Legal/Privacy.
26 | Annual Report on Form 20-F 2023
Creating sustainable value for our stakeholders in 2023 | ||||
Aegon has a set of information security metrics to measure the outcomes of its information security initiatives, as well as the effectiveness of the existing security controls. Aegon uses these metrics to calculate an overall Information Security Risk Score for the organization. One of the key metrics for data security is the proportion of employees completing annual training on information security. In 2023, 94% of Aegon employees completed this training.
Data privacy
Aegon has policies and procedures in place to support privacy compliance at a company and business unit level. The policies are updated within predefined intervals and supported by a strong privacy control framework to ensure ongoing privacy maturity measurements. Regular audits are conducted to assess compliance with relevant laws, regulations, and policies, as well as the Aegon Privacy Control Framework and its governance.
At Aegon, the Group Chief Privacy Officer is responsible for our data privacy compliance strategy and privacy oversight. Similar to the data security set-up, the Data Protection Officer in the individual business units is responsible for executing the statutory tasks of the Data Protection Officer (DPO) function. The operational privacy teams in relevant business units execute privacy advisory, control testing, and attestations. The Privacy Officers are accountable for privacy compliance at a business unit level. Privacy Officers are often part of the relevant management committees.
One of our key metrics for data protection is the proportion of employees completing specific training on data privacy. In 2023, 97% (2022: 99%) of Aegon’s workforce completed this training.
See page 472 for more details of Aegon’s approach to data security and privacy.
Employees
Key performance indicators (KPIs)
for this stakeholder group:
KPIs | Target for 2023 | Performance in 2023 | Target for 2024 | |||
Proportion of women in senior management1(%) | Minimum 38% | On track. 38% | Minimum 40% | |||
Result of the most recent employee engagement score2 (%) | At least 72% | On track. 77% | At least 78% |
1 | In this context, senior management includes individuals up to two levels below the CEO (three levels for Corporate Center), provided they have direct reports. If the person has no direct reports, but the job title indicates the required seniority, the individual is also considered part of senior management. People working in the “administration” group are excluded from the list, unless their job title indicates the required seniority. |
2 | The Global Employee Survey is provided through Culture Amp®. |
All employees, including those in joint ventures, participate in the survey on a voluntary basis. Employee engagement is measured on a five-point scale (strongly disagree to strongly agree), and it is the average score of four statements: |
§ | The company motivates me to go beyond expectations |
§ | I am proud to work for this company |
§ | I see myself still working at this company in two years’ time |
§ | I would recommend this company as a great place to work |
In 2023, three employee surveys were conducted throughout the year including a short check-in survey in Q1, a focused I&D survey for most business units, excluding Transamerica, in Q2, and a full employee survey in Q3. The participation rate for the most recent survey was 78%.
At Aegon, our people are key to how we achieve our purpose and deliver on critical illnessour strategy and accident products.sustainability ambitions. Furthermore, our long-term success depends on maintaining a skilled, motivated, and purpose-driven workforce. In line with our topics, we work hard to ensure the wellbeing of all Aegon employees around the world, including salaried colleagues. Our approach covers the different stages of the employee experience, from promoting employee engagement and good working conditions, to following best practices in attracting, developing, and retaining talent. Meanwhile, we remain committed to building an inclusive and diverse workplace that reflects the changing nature of our customer base and wider society. In 2023, and at a time of immense change for our business, we paid particular attention to the wellbeing of our colleagues and to preserving the positive aspects of Aegon’s culture and heritage, and ways of working.
Annual Report on Form 20-F 2023 | 27 |
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Supporting employee wellbeing and working conditions
2023 was a transformative year, as the combination of Aegon’s Dutch business with a.s.r. created uncertainty for many employees in the Netherlands and beyond. A priority was to support our employees through the transition and to ensure that the process was properly managed with their wellbeing in mind. This included ensuring good working conditions and a seamless transformation for colleagues moving from Aegon to a.s.r., as well as ensuring clear and transparent communication with employees remaining with Aegon.
Following the closing of the transaction in July, Aegon announced its intention to move its global headquarters from The Hague to the World Trade Center (WTC) at Schiphol Airport. From 2025, WTC Schiphol will house all Aegon employees of the headquarters and of the Dutch part of Aegon Asset Management. The new offices will be adapted to meet the needs of all Aegon employees, with good accessibility for people with disabilities. At the same time, Aegon remains committed to its hybrid working model, which offers employees the opportunity to work flexibly to suit their needs and lifestyles while reducing their carbon footprint.
Aegon’s functions and teams are also taking approaches to ensure employee wellbeing. In 2023, Global Technology Services (GTS) employees were provided with a dedicated wellbeing hub. This is an important resource that allows GTS team members – who are often spread across different locations – to find and connect with resources to support their mental, physical, and financial wellbeing.
Investing in talent attraction, development, and retention
We aim to create an attractive work environment and culture through which all colleagues can live their best working lives. In an increasingly competitive labor market, we enhancedalso prioritize attracting and retaining talented people who have the skills and attributes needed to deliver on our customer propositionspurpose and strategy. To this end, we seek to provide employees with extensive opportunities for personal development and growth, while ensuring that high-quality learning and development opportunities are available to colleagues from all regions, disciplines, and backgrounds. Increasingly, our learning and development strategy closely aligns with our purpose and sustainability approach. For example, we recently launched our company-wide Sustainability Academy to drive awareness and alignment regarding our sustainability approach, including our efforts to address our priority themes and DMA topics (see “Sustainability” on page 15 and onwards).
In 2023, Aegon launched its global learning resource platform, We Learn. The platform offers a wide range of learning resources available in different delivery modes – including e-learning courses, live virtual training, and audio books – allowing participants to choose their preferred learning method. During the year, we also introduced our Global Talent Marketplace (TMP) tool, an AI-powered platform designed to drive internal mobility across our various businesses and geographies. The tool makes it easier for employees to network and explore career opportunities across Aegon, as well as explore and apply for internal roles and temporary projects (gigs). The marketplace concept also builds on Aegon’s existing mentoring programs by matching mentees with suitable mentors who may be on the other side of the world. The TMP not only benefits our organization by making it easier to identify and make the most of hidden talent, but is also an investment in talent attraction and retention as we broaden the opportunities available to current and future Aegon professionals.
We reached a major milestone in our HR strategy in 2023 to unlock talent through the implementation of We Learn. Ensuring that all colleagues around the world have easy access to quality education and training is an important areas,step in promoting learning and development at Aegon. In addition, we continue to provide tailored development opportunities for example by introducing a new ‘green’ mortgage to help people pay for sustainable home improvements. We alsospecific members of our workforce, including our leaders. In 2023, we added new features to our banking services,Best Life Leadership Program (BLLP), launched the previous year to inspire and support leaders in steering the organization to uphold Aegon’s purpose and behaviors. For example, we integrated a new virtual coaching tool, powered by EZRA Coaching, with participants receiving virtual coaching from leading external experts. In addition, Aegon enhanced the Pulse program, a company-wide talent-development program that is nurturing our next generation of leaders. The 2023 edition of Pulse included impactful sessions with guest speakers as well as a face-to-face personal development module led by the Oxford Leadership Academy, an international leadership training consultancy. In 2023, we started a new program, “Horizon”, targeted at management. The program offers an enriching experience to create self awareness and strengthen personal leadership.
28 | Annual Report on Form 20-F 2023
Creating sustainable value for our stakeholders in 2023 | ||||
New solutions to drive employee engagement around the world
Aegon maintains a wide range of platforms and channels to listen to its employees and support healthy engagement and communication. These include our regular Global Employee Survey, which included Apple Pay, a refunded VAT savings proposition,provides colleagues across all our businesses with an opportunity to feed their views and attractively priced insurance coverages.
In addition, regular town hall meetings are a feature for Aegon colleagues around the world. In 2023, Aegon also expanded its Employee Resource Groups (ERGs), making them open to our customersall Aegon colleagues worldwide. Our ERGs are employee-driven and that require empathycompany-sponsored; they focus on what matters most to employees and enable colleagues with specific backgrounds or personalized advice. interests to ensure Aegon meets their expectations. The range of ERGs is broad and includes groups dedicated to supporting mental health and wellbeing, as well the representation of minority employees. For example, “Aegon Proud” ERGs have been established for LGBTQIA+ colleagues in the United States, the United Kingdom, and the Netherlands.
At the same time, we continued to introduce 24/7 self-service optionsensure that our employees are adequately represented in our governance structure and that their needs and expectations are considered in our strategy and day-to-day decision-making. In the United Kingdom, Aegon colleagues can seek representation through the Unite and Aegis unions. Following the completion of the transaction with a.s.r., all remaining Aegon employees in the Netherlands, other than senior management, continue to allow customers to complete simple requestsbe covered by themselves.
Since 2020, Aegon has run a dedicated Speak Up program to protect whistle-blowers and to encourage, guide, and support colleagues in reporting suspected or observed misconduct. We provide mandatory training on Speak Up for all employees, which is tailored to specific roles (for example, leaders’ and managers’ training includes sections on being receptive to people coming forward).
Aegon UK colleagues are tuning in |
Organized by Aegon UK, the Big Tune Ins are a series of interactive sessions between Aegon leaders and employees, held at various Aegon locations across the United Kingdom. The sessions give colleagues the opportunity to hear directly from Aegon leadership about new developments through presentations, quizzes, competitions, and other interactive activities. By the end of 2023, 10 Big Tune Ins had been held across three locations in the United Kingdom, reaching more than 1,700 (72,4%) colleagues in the UK. |
Aegon has outlined a company-wide I&D strategy that has been adopted by each of communicatingits business units. We work to have our policies and actions permeate throughout of the organization and that our leaders, colleagues, and other stakeholders around the world can actively contribute to building a more inclusive and diverse organization. Our I&D strategy builds on the work undertaken in recent years to develop a consistent and coherent way of working for the whole company.
Two fundamental elements of Aegon’s I&D strategy are:
1. Authentic action – the recognition that, as an organization, we are on a journey to improve. We need to turn good intentions into actions to create a positive difference for our people and communities.
2. Starting at the top – the members of Aegon’s senior leadership are expected to act as role models for I&D, including by sharing their own inclusion stories and championing a specific area of diversity excellence among employees.
To this end, Aegon published its current Inclusion & Diversity Policy for the Aegon Ltd. Board of Directors and Executive Committee on September 30, 2023.
The policy aims to deliver a diverse Board composition of at least 30% female representation, as well as diversity among individual members in terms of experience, nationality and age, and their educational, professional and geographical background. By achieving greater diversity, Aegon believes it will enhance decision-making, effectively manage risk, and achieve growth through introducing a different set of perspectives, experiences, and viewpoints.
In 2022, Aegon appointed, for the first time, a Global Head of Inclusion and Diversity. The Executive Committee has agreed an overarching I&D Strategy that brings a coherent and consistent approach to enhancing the diversity and inclusivity of our workplace, and the marketplaces and communities we serve.
Annual Report on Form 20-F 2023 | 29 |
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Aegon Ltd.’s Board of Directors consists of five men and four women, equal to 44.4% female representation, and it represents five nationalities (American, Dutch, Swiss, British and French), and two age groups:
Age: 60-64: 4 / Age: 65-69: 5
Further, the Board members have varied academic and professional backgrounds.
The composition of the Executive Committee at year-end 2023 was eight men and three women, equal to 27.3% female representation (up from 20% in 2021). As a result of the business combination with householdsa.s.r., the number of seats in the Executive Committee has been reduced by one seat. All other positions on the Executive Committee have remained stable in 2023. There are five nationalities represented (American, German, British, Dutch, and individuals. In 2021, we continuedItalian) and four different age groups:
Age: 45-49: 2 / Age: 50-54: 5 / Age: 55-59: 1 / Age: 60-64: 3
Our inclusion and diversity pillars
The following pillars are in place to strengthensupport our customer portals acrossI&D strategy:
Workforce: We seek to build a professional culture that engages and welcomes people from all backgrounds and that promotes conscious inclusion.
Employee Resource Groups: Aegon’s Employee Resource Groups (ERGs) provide Aegon employees with a space to address topics of interest and promote employee engagement on issues of company culture and direction. Examples of current ERGs in place at Aegon include Culture, Race and Ethnicity, (Dis)ability, Generations, Proud, Wellbeing, and the Women’s Impact Network. These ERGs are open to all employees, regardless of how they identify.
Workplace: We are actively integrating I&D into our recruitment strategies and leveraging diversity data for meaningful improvement. For example, Transamerica has launched a Talent Acquisition, Inclusion & Diversity Committee that includes an I&D program manager and recruiters from the different Transamerica business units includingto ensure inclusive hiring practices.
We are continuously taking actions to increase diversity in our Employee Benefits business in the United States. The focus was on improving customers’ ability to file claims, receive status updatestalent pipeline, as we recognize that this will provide us with a stronger pool of candidates for requests, and check the terms and conditions of their policies. We also took steps to streamline our billing and disbursement processes.
Insights from Aegon’s first international I&D Survey In 2023, Aegon conducted its first international Inclusion & Diversity Survey. These are some of the key findings from the survey. § 25% of respondents belong to one or more minority group (transgender, non-binary, LGBTQIA+, ethnic minority, or disabled). § 79% of respondents have a positive view of diversity at Aegon and 79% feel included by the company. § Minority groups have a less positive view of I&D at Aegon. Recognizing this, we continue to invest in the actions described throughout this report. § Employees aged 50 and over are more likely to have a positive view of I&D at Aegon. § Perceptions of inclusivity do not differ between male and female colleagues. § There is a strong link between I&D and employee engagement. |
Aegon understands the wider benefits of increasing diversity beyond gender, and our I&D strategy focuses on gathering insights on many aspects of diversity, including, for example, disability, generational difference, sexual orientation, and ethnicity. Activities to enhance our position include:
§ | Conducting a maturity assessment and inclusion survey on our diversity journey providing us with baseline data to track our progress and develop impactful interventions. |
§ | Continuing to set stretched goals for gender diversity in senior management, as part of the Executive Committee’s non-financial performance indicators. |
§ | Embedding inclusive leadership behaviors as part of our flagship Leadership Programs to promote and harness diversity of thought and create a more inclusive workplace. |
§ | Enhancing our Speak Up culture to allow safe escalation of concerns and issues. |
§ | Implementing Talent Marketplace and a global skills and development content provider (We Learn) offering transparent and inclusive access to on-the-job development opportunities and skills-based mentoring. |
§ | Employee Resource Groups to support employees and advance our culture around such areas as mental health, race and ethnicity, sexual orientation, disability, early careers, and veterans affairs. |
30 | Annual Report on Form 20-F 20212023
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Executive Committee remuneration: Overall, Aegon has continued to make significant progress on increasing the number of women in senior management positions, with an average of 2%-points increase each year from 32% in 2020, achieving our company-wide goal of 38% in 2023. Achievement of this global goal is linked to the non-financial performance indicators of Aegon Ltd.’s Executive Committee members. Women comprised 38% of Aegon’s female leadership as of January 1, 2024.
Collaborating with peers and trust
Marketplace: We seek to strengthen our I&D values in close dialogue with our customers and build close, personal connections centeredcommunities, creating positive change through surveys, feedback, and benchmarking.
Listening to our customers: We use feedback from our customers and benchmarking information to assess our maturity with regard to I&D. We use this feedback to take action, including by developing new, inclusive products and adjusting our ways of working.
Community investments: As per Aegon’s Global Community Investment Framework, we seek to drive inclusion in our communities by taking steps to empower people financially and socially.
Partners and suppliers
Aegon’s relationships with its suppliers are an important channel for addressing the issues that matter to the company and its stakeholders. As a financial services company operating at a key position in the value chain, we are in a position to influence sustainability and best practice in our industry, and we create transparency within our supply chain through a process of due diligence and closely monitor the performance of our key suppliers and partners on trust.
Working with our value chain to address climate change
In 2023, Aegon’s digital banking platform,businesses around the world continued to support local entrepreneurs through Knab Bieb, an extensive online library forwork closely with their supplier base on topics related to financesustainability.
For example, with its Supplier Diversity Program, Transamerica actively seeks out certified diverse suppliers that can provide competitive, high-quality goods and entrepreneurship.
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During 2023, Transamerica also initiated outreach to its top suppliers to invite them to participate in its sustainability program, with successful results. Transamerica has incorporated sustainability ratings into its Procurement practice and networking. Tois working on increasing awareness of the program throughout the company. In 2024, Transamerica has committed to ensure we get things done regardless ofthat its top 150 suppliers will participate in sustainability assessments and continues to work setting, we ensure we haveto expand the technology and tools in place to help bridge gaps in time or place, so everyone feels included. Creating opportunities for our employees to reach a preferred working solution also reinforces our purpose of Helping people live their best lives.
Annual Report on Form 20-F 2023 | 31 |
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In the United Kingdom, Aegon increased the number of existing suppliers with whom it aims to build core transformation capabilities
During the year, Aegon UK also organized training for its procurement and wider society.
Across Aegon, we make a concerted effort to spread good sustainability ideas and suppliers are required to recognizepractices between our diverse teams and build processes to comply with applicable laws and ethical business practices in jurisdictions where they operate or conduct business. This includes taking steps to communicate the Vendor Code of Conduct within their own organizations, and, in particular, to employees or sub-contractors working directly with Aegon. More widely, we expect our suppliers to align with Aegon’s ethics, values, and standards. This includes adhering to Aegon’s Statement on Human Rights and avoiding complicity in the abuse or violation of internationally proclaimed human rights standards. Furthermore, we ask our suppliers to acknowledge and minimize their environmental impact wherever possible, and to provide fair compensation for any ecological damage they cause.
Maintaining an inclusive and diverse supplier base
At Aegon, we view an inclusive procurement process as a sound basis for healthy business relationships for all parties. We therefore actively foster relationships with a diverse range of suppliers who offer high-quality goods and services with competitive pricing. Above all, it is important that the partners we work with share our progressive approach to inclusion and diversity and that they reflect the diverse customers and communities that we serve. We implement this approach at the business unit level. Through its Supplier Diversity Program, our US business, Transamerica, actively seeks certified diverse suppliers that can provide competitive, high-quality goods and services. In 2023, Transamerica’s public website was updated to provide more information about the program. Meanwhile, the business continued to report year-on-year growth in the percentage of addressable spend allocated to diverse suppliers.
Our distribution partners are another important driver of our inclusion and diversity strategy. In the US in particular, Aegon has a memberwell-developed distribution network of Social Enterprise UK, a community interest company encouraging businesses to spend a total of GBP 1 billion with social enterprises. Aegon UK far exceeded its 2021 target of GBP 100,000, eventually reaching GBP 150,000. Meanwhile,agents through WFG. In 2023, Transamerica also took steps to improve supplier diversity in 2021. Most notably,expand and broaden its new Supplier Diversity Program is designeddistribution network to increaseserve more diverse customer groups. The approach included recruiting WFG agents from diverse communities who can meet the numberneeds of diverse suppliers in our portfolio, and in 2021 we added two new diversecustomer groups traditionally underserved by financial services companies, such as minorities.
Aligning on sustainability: Our responsible procurement program The annual responsible procurement program assessments enable Aegon to monitor the objectives and performance of its suppliers and partners in relation to key ESG issues. This understanding is an important starting point to drive alignment on issues such as climate change and inclusion and diversity within our value chain. Our responsible procurement program has traditionally been centrally managed by Aegon’s Corporate Procurement function. In 2023, we began the process of integrating the program across our different businesses around the world. From 2024, all Aegon business units will be required to set and report on responsible procurement -related targets for their respective suppliers, in line with Aegon’s company-wide targets for suppliers. Business units will also be expected to work more closely with suppliers to ensure good business practices throughout their supply chains. With a more coordinated approach, we aim to increase transparency on how our strategic supplier base is performing and how this supports our broader sustainability ambitions as an organization. |
Embedding good business conduct
in the contingent labor category.
To ensure good business conduct across its supplier base, Aegon sets high standards for partners and suppliers, which are communicated in the company’s global Vendor Code of Conduct. As stated in the Code, Aegon’s Tier 1 suppliers are required to demonstrate compliance with these standards on an annual basis and are encouraged to register for assessment by the responsible procurement program (see box out above for more information on Aegon’s responsible procurement program).
In addition to promoting the Vendor Code of Conduct, Aegon’s businesses monitor standards for good business conduct in their respective markets, and encourage local partners to comply with these wherever possible. In 2023, Aegon UK became a signatory to the UK Stewardship Code, a voluntary set of guidelines aimed at raising the standard of stewardship practices used by asset owners, managers, and service providers. During the year, the business also continued to encourage critical and local suppliers to become Living Wage Employers, meaning that they are accredited by the Living Wage Foundation for their commitment to pay employees in line with the current cost of living.
* | Scope 3 emissions are all indirect emissions - not included in scope 2 - that occur in the value chain of the reporting company, including both upstream and downstream emissions. |
32 | Annual Report on Form 20-F 20212023
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Investors
In 2023, Aegon continued to make progress against its strategic and due diligence
Solid financial performance
Building on the progress of its transformation program, in 2023 Aegon published updated financial targets for 2025. We aim to increase the free cash flow from EUR 715 million in 2023 to around EUR 800 million by 2025. Free cash flow is supported by improving the quantity and the quality of operating capital generation. Thanks to several one-time items occurring during the year, operating capital generation of EUR 1.28 billion was above the guidance of more than EUR 1.0 billion for 2023. For 2025, Aegon aims to achieve approximately EUR 1.2 billion in operating capital generation, a target that will be primarily supported by the growth of Aegon’s Strategic Assets in the US. This puts us on a more linear path to achievingin turn will support our aimdividend target of paying around 2540 eurocents dividend per common share overin 2025, barring unforeseen circumstances. This target reflects the expected benefits of the a.s.r. transaction and the execution of our US strategy.
In 2023, to equity investors.
Aegon’s gross financial leverage position decreased to EUR 5.1 billion at the end of 2023 compared with 2022, mainly driven by the maturity and repayment of a EUR 5.9 billion. This500 million senior bond. The gross financial leverage delivered EUR 220580 million value in the form of interest payments to bondholders.
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Value derived from share performance
Aegon’s share price roseincreased by 36% over 2021. The wider8% in 2023. As a result, it outperformed the broader European insurance industry performed less well, with the(the STOXX Europe 600 Insurance Index endingended the year up by 15%6%). We believe theAegon’s relative overperformanceoutperformance was supporteddriven by favorable market movements,a continued progress made onagainst our operational improvement plan,financial commitments and management actions to improve our strategic focus and risk profile. In addition, favorable equity markets and higher interest rates supported the development, despite the pressure on the equity market in the wake of the US banking crisis in the early months of 2023, and negative market sentiment toward Dutch insurance companies following unfavorable court rulings against two of Aegon’s peers in the second half of the year. Our total shareholder return for the year amounted to a gain of 41% (this16%. This measure considers payment of dividends as well as share price performance).
Safeguarding long-term value
As we continue our balance sheet. This allows for attractive and sustainable capital deployment decisions, which generate value for our investors over the longer term. Wetransformation journey, we are committed to reducingmaintaining sufficient capital in our gross financial leveragebusinesses and at the holding. This approach allows Aegon’s management to between EUR 5.0 billionfocus its time and EUR 5.5 billion until 2023energy on increasing the return on capital, and distributing capital to further strengthenshareholders. As part of our balance sheet. capital management approach, we will continue to focus on managing the capital positions of our businesses according to their respective operating levels over time.
Capital deployment decisions are driven by Cash Capital at Holding, taking into account our deleveraginggross financial leverage target and the planned management actions to further improve the company’s risk profile of our company, and are supported by reliable and sustainable remittances from our country units.
The operating range for Cash Capital at Holding is EUR 0.5 billion to EUR 1.5 billion. In line with our capital management approach, we have the ambition to reduce Cash Capital at Holding to around the mid-point of the operating range over time by returning capital to shareholders over time, unless we invest it in the absence of value-creating opportunities. As previously indicated, following the completion of the transaction with a.s.r., Aegon will reduce its gross financial leverage to around EUR 5.0 billion. We expectaim to pay dividends to shareholders in line with the growth inof sustainable free cash flow, barring unforeseen circumstances.
Annual Report on Form 20-F 2023 | 33 |
![]() | About Aegon Governance and risk management Financial information Sustainability information | |||
Society
Key performance indicators (KPIs)
for this stakeholder group:
KPIs | Target for 2023 | Performance in 2023 | Target for 2024 | |||
Weighted average carbon intensity for corporate fixed income and listed equity in our general account1 (metric tons CO2e / EURm revenue) | 25% reduction by 2025 against 2019 baseline | Ahead of target. 37% reduction by 2023 against 2019 baseline | 25% reduction by 2025 against 2019 baseline | |||
Amount of investments in activities to help mitigate climate change or adapt to the associated impacts by 2025 (USD billion) | USD 2.5 billion investments by 2025 | Slightly behind projected budget. USD 1.8 billion invested. | USD 2.5 billion investments by 2025 | |||
Number of engagements with the largest corporate carbon emitters in our investment portfolio by 2025 | Engagement with at least the top 20 corporate carbon emitters by 2025 | On track. 19 investees were engaged | Engagement with at least the top 20 corporate carbon emitters by 2025 | |||
Carbon intensity of our directly held real estate investments (Scopes 1 and 2) (kgCO2e/m2) | New target | Ahead of target. 46% reduction by 2023 against 2019 baseline | 25% reduction by 2025 against 2019 baseline | |||
Absolute operational carbon emissions (Scopes 1 and 2) (metric tons CO2e) | 25% reduction by 2025 against 2019 baseline | Ahead of target. 68% reduction by 2023 against 2019 baseline | 25% reduction by 2025 against 2019 baseline | |||
Proportion of new employees who completed the Code of Conduct attestation | 95% | Ahead of target. 99% | 95% |
1 | Aegon has committed to transitioning its general account* investment portfolio to net-zero greenhouse gas (GHG) emissions by 2050. The commitment includes an intermediate target to reduce the carbon intensity for corporate fixed income and listed equity in our general account by 25% in 2025 compared with 2019. For details on the methodology used, please see the TCFD section (Methodology) on page 486. (* The general account portfolio consists of assets where Aegon can take the investment decisions, considering the legal obligations of Aegon as prescribed by local laws and regulations. A similar approach applies to selected investments where Aegon AM in its capacity of manager takes the investment decisions. For discretionary investments for account of third parties and off-balance sheet investments, the investment decisions are driven by the relevant third parties as well as the legal and/or fiduciary obligations of Aegon, as prescribed by local laws and regulations.) |
At Aegon, we seek to add value to society by providing accessible financial solutions that enable people to protect their assets and save for retirement, thereby reducing the burden on public pension and other retirement solutions, Aegon hassocial systems. At the same time, we look for opportunities to drive positive change at a responsibility to help people plan effectively for old age and to enjoy longer, more active retirements. Financial security and education, as well as wellbeing and longevity, are at the heart of our business and go hand in handlocal or regional level, working with our purpose of
Addressing climate change from a societal perspective
Addressing climate change and its impact on society underpins our purpose and sustainability ambitions. In line with our DMA topics and priority themes, we are therefore taking steps to support the modern retirement landscape
Aegon’s responsible investment approach directly supports our climate risk and employersopportunity management. For example, through our US business, Transamerica, the company has committed to individuals. By pursuing research, advocacy,investing USD 2.5 billion by 2025 to support activities that can help society mitigate climate change or adapt to its impacts. In 2023, Transamerica added new climate-related investments to its portfolio. Several of these investments, including Commercial Property Assessed Clean Energy (C-PACE) asset-backed securities, address the need to engage ordinary households and visibility around financial planning, retirement, health,individuals in the transition to a more climate-conscious society. C-PACE is a financing structure in which building owners borrow money to finance projects related to energy efficiency, renewable energy, or energy storage, for example, or storm and insurance, we aimseismic hardening.
Transamerica also added to increase recognitionan existing position in the asset-backed securities of this critical social issue within global policymaking agendas.the GoodLeap Sustainable Home Improvement Trust. GoodLeap is the leading US point-of-sale platform for sustainable home solutions, enabling homeowners to pay for sustainable home improvements, such as solar panels and energy-efficient windows.
34 | Annual Report on Form 20-F 20212023
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Building more inclusive communities and opportunities related to saving and planning for retirement, and to the achievement of financial security in later life. This includes participating in relevant international projects, such as an Organisation for Economic Co-operation and Development (OECD) working group on the future of work, and the Living, Learning, and Earning Longer initiative led by the World Economic Forum (WEF), to examine the benefits of an age-inclusive workforce. Our research efforts are channeled through dedicated institutes operating on the ground in our local markets. These include the Transamerica Institute in the United States and the Instituto de Longevidade MAG in Brazil.
In line with our purposefocus on inclusion and ambitions, including by way ofdiversity, Aegon’s businesses make community investments that seek to serve and strengthenhelp support people from within the communities in which wethey operate. At the same time, through donations and volunteering, we aimOur community investments are also an opportunity for Aegon employees to drive engagement between employees and their local communities and promote oursupport Aegon’s purpose and ESG approachsustainability ambitions by contributing to all stakeholders.
Through our Global Community Investment Framework, we pay particular attention to initiatives that promote social and financial empowerment within our local communities. For social empowerment, we seek partnerships that increase the opportunities and skills of people in our communities, expand their networks, provide access to essential services, and enable them to manage their financial health. For financial empowerment, our partnerships focus on building financial awareness, knowledge, and skills, and giving people the tools to become more financially resilient.
In 2021,2023, Aegon supported approximately 469420 charities and good causes. Our donations amounted to EUR 9.47.6 million, a 1.3% increase16.6% decrease compared with 2020.2022. Much of this investment was driven by our Charitable Donations Standards, which require country units to allocate at least 50% of their annual donations to causes that directly support financial security and personal wellbeing.
Anti-corruption and our ‘Volunteer Friday’ program in the Netherlands was held virtuallyanti-bribery, including whistleblower protection
Business conduct is a fundamental area of focus for the first time.Aegon. The subject is heavily influenced by legal requirements, and includes aspects ranging from business ethics to anti-corruption and bribery, and whistle-blower protection. Further information on these topics can be found on page 473.
Aegon colleagues join forces for Global Force for Good Week In May 2023, Aegon’s businesses and partnerships around the world came together for the company’s first Global Force for Good Week. More than 2,000 colleagues participated in the event, representing over 20 different Aegon offices. The event was overseen by a global taskforce made up of colleagues from a wide range of backgrounds and disciplines. In total, more than 200 worthy local causes benefitted from Aegon’s support during the week. |
Responsible tax
Aegon makes a valuable economic and social contribution to the communities in which we operateit operates through ourthe company’s own tax payments, as well as the collection and payment of third-party taxes. We seek to pay ‘fair taxes’,“fair taxes,” namely by paying the right amounts of taxtaxes in the right places. Published online, our Global Tax Policy outlines our approach to responsible tax, which seeks to align the long-term interests of our customers, employees, business partners, investors, and wider society. In 2021, we also began publishing aAegon adheres to the VNO-NCW Tax Governance Code (as published on https://www.vno-ncw.nl/taxgovernancecode) for further details, please refer to Aegon’s Global Tax Report to provide a comprehensive overview of our approach to tax and our tax contributions on a country-by-country basis.Report.
Annual Report on Form 20-F 2023 | 35 |
About Aegon Governance and risk management Financial information Sustainability information Performance in 2023 Financial markets in 2023 were dominated by inflation levels above those targeted by central banks, as well as a continued interest rate volatility. Equity markets were volatile as well, but ended the year strong. Adiditionally, markets were influenced by uncertain political situations in several countries: most prominently the continued war in Ukraine, and the escalation of the conflict between Israel and Hamas in the fourth quarter of 2023. 36 | Annual Report on Form 20-F 2021 2023
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These developments impacted Aegon’s performance during the year. While the UK workplace business saw good new business inflows, the performance of the UK retail and asset management businesses was challenged. Despite this, Aegon maintained solid financial results and strong capital positions. The company delivered on its targets and on the guidance given at the start of the year, reporting for the first time under the new IFRS 9 and IFRS 17 accounting standards. Aegon’s performance this year provides a solid foundation for achieving its 2025 financial targets set out at the Capital Markets Day in 2021
Financial performance
The operating result amounted to EUR 1.5 billion in 2023, which was a decrease of 17% compared with 2022. The operating result was determined by the release of the Contractual Service Margin and of the Risk Adjustment, both of which were determined pursuant to IFRS 17, partly offset by experience variances and by the result from onerous contracts. The decrease of the operating result was driven by a decrease in the net investment result following management actions such as the reinsurance of a universal life portfolio and assumption updates, as well as lower revenues from fee business following outflows and adverse market movements. Our net result amounted to a loss of EUR 199 million for 2023. The operating result was more than offset by Other charges from the completion of the transaction with a.s.r. and from model and assumption changes, as well as one-time investments in the US. In addition, realized losses on bond sales contributed unfavorably to the net loss but were offset by gains in the Other Comprehensive Income in shareholders’ equity.
The capital ratios of Aegon’s businesses in the US and UK increased somewhat over the year and remained above their respective operating levels. This underscores the effectiveness of the actions we have taken to improve our risk profile and reduce the volatility of our capital position. This includes management actions on the US Universal Life portfolio – where we reinsured further parts of the portfolio and bought back investor-owned policies – and further approvals for long-term care rate increases. In the UK, the increase of the UK Solvency II ratio mainly reflects a benefit from the risk margin reform by the UK regulator.
Free cash flows decreased from EUR 780 million in 2022 to EUR 715 million in 2023, and contributed – together with the cash proceeds of EUR 2.2 billion from the transaction with a.s.r. – to the increase in Cash Capital at Holding to EUR 2.4 billion by the end of 2023, above the operating range of EUR 0.5 billion to EUR 1.5 billion.
As announced with the transaction, Aegon launched a EUR 1.5 billion share buyback program, of which 54% had been completed at the year-end of 2023. In addition, Aegon has executed a EUR 200 million share buyback program in the first half of the year, in line with its intentions to return surplus cash capital to shareholders. As a result of the transaction with a.s.r., we announced to reduce our gross financial leverage by up to EUR 700 million of which EUR 500 million was implemented by the end of the year than beforebringing the COVID-19 pandemic. Interest rates increased considerably in the United States compared with the low levels seen during 2020, whereas credit spreads remained relatively stable over the year.
As a successful lump-sum buy-out program and expanded our dynamic hedging program to release capital and increaseresult of the predictability of capital generation. In addition, we executed plans to reduce our
At our 2023 Capital Markets Day, we set new financial targets for the year to 17 eurocents per share.
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Further information on our performance in 20212023 can be found in the Results“Results of Operationsoperations” section on page 90.102.
Financial targets for 20251
Reduce gross financial leverage | Around EUR 5.0 billion | |
Increase operating capital generation2 | Around EUR 1.2 billion | |
Grow free cash flows | Around EUR 800 million | |
Increase dividend to shareholders | Around EUR 0.40 per share |
1 | Barring unforseen circumstances, and dividend subject to Board and other relevant approvals. |
2 | Before holding and funding expenses. |
Annual Report on Form 20-F 2023 | 37 |
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38 | Annual Report on Form 20-F 2023
Governance and risk management 2023 40 Boards and Governance 40 Letter from the Chairman of the Board 42 Corporate governance 47 Sustainability governance 48 Composition of the Board and Executive Committee 54 Report of the Board of Directors 62 Remuneration Report 79 Risk and capital management 79 Risk management 85 Capital and liquidity management 91 Regulation and compliance 91 Regulation and supervision 93 Code of Conduct 94 Controls and procedures Annual Report on Form 20-F 2023 | 39
About Aegon Governance and risk management Financial information Sustainability information Letter from the Chairman of the Board William Connelly Chairman Board of Directors, Aegon 2023 was another important year of transition as Aegon began a new chapter in its transformation and took further steps to create value for its stakeholders. The year was marked by the completion of several important milestones for Aegon that required the close attention of the Board of Directors. I am pleased with the progress that Aegon is making in its ongoing transformation, and with the commercial momentum in key markets. One such step was the closure of the transaction to combine Aegon’s Dutch pension, life and non-life insurance, banking, and mortgage activities with a.s.r. to create a leading Dutch insurance company. The Board closely monitored the transaction with a.s.r., including the post-closing process. The almost 30% stake in a.s.r. allows Aegon to benefit from the synergies and commercial opportunities this combination will generate. Furthermore, the associated EUR 1.5 billion share buyback program, which uses the majority of the cash proceeds from this transaction, is proceeding well. The completion of the transaction resulted in changes to Aegon’s corporate structure and regulatory landscape. In particular, as the company no longer had a regulated insurance entity in the Netherlands, a new group supervisor was required. Following discussions in the college of supervisors, the Bermuda Monetary Authority (BMA) informed Aegon that it would become its group supervisor if the company were to move its legal domicile to Bermuda. The Board of Directors closely reviewed the implications of the redomiciliation from the perspective of all stakeholders. After extensive discussions with Aegon’s leadership and external advisors, the Board concluded that the proposed move is in the best interest of the company’s stakeholders and provides the company with the stability needed to continue executing its strategy. We therefore strongly supported the change in supervisor as well as the move 40 | Annual Report on Form 20-F 2023
Letter from the Chairman of the Board | ||||
of the company’s legal seat. On behalf of the Board, I would like to thank Aegon’s former group supervisor, the Dutch Central Bank (DNB), for the pleasant and efficient cooperation over the years. We look forward to further fostering a fruitful relationship with our new group supervisor, the Bermuda Monetary Authority.
The redomiciliation of Aegon has also resulted in Aegon adopting a new governance structure. This includes the introduction of a one-tier board, comprising the members of the Supervisory Board under the previous framework – in a non-executive role – and the CEO as an Executive Director. The Board has also been involved in the successful implementation of the new structure. As part of the engagement process with stakeholders on this topic, amendments were made to the governance framework to further enhance shareholder rights. The Board was pleased with the constructive dialogue with stakeholders, as well as the outcome.
Engagements with stakeholders
During this important year of transition, it was more important than ever to maintain close engagement with Aegon’s shareholders and other stakeholders. In December 2020,addition to the redomiciliation to Bermuda, a key governance issue discussed was the proposed changes to Aegon’s remuneration policy, with the new policy set to be voted on by shareholders at the 2024 Annual General Meeting (AGM).
A highlight of the engagement calendar in 2023 was Aegon’s Capital Markets Day (CMD) in June. In light of the transformation process the company is in, the CMD was an opportunity for Aegon launchedto showcase the strong position and ambitions of its businesses in the United States. Aegon’s leadership also presented its plans and financial targets for the coming three years, which include a meaningful reallocation of capital from Financial Assets to Strategic Assets. This will improve both the risk profile and profitability of the US businesses. The Board of Directors was closely involved in the preparations for the event, which included the official launch of Aegon’s new business strategy, which touchesbrand and logo, symbolic of a new era for the company.
Committed to creating value
As we work to ensure the right governance and operational path for the future, Aegon’s leadership and employees remain committed to creating long-term value for all stakeholders and to delivering on the company’s purpose of Helping people live their best lives. This includes not only enabling financial wellbeing for customers, but also having a broad rangepositive impact on society at large. In 2023, the Board of non-financial elementsDirectors was pleased to see Aegon make progress on its sustainability ambitions, and includes a commitment to integrate a strengthened visionparticularly on sustainability. In 2021, we made good progress against our ambitions by establishing new sustainability governance, preparing for migration of sustainability reporting to our finance department, and selecting twothe priority themes which areof climate change and inclusion and diversity. A notable milestone in Aegon’s commitment to its sustainability approach was the addition of a new climate target to reduce the carbon intensity of Aegon’s directly held real estate investments.
The increased focus on its sustainability approach to our stakeholders and that our priority themes are addressed. This has led to the retirement of three customer-related KPIs: number of customers, percentage of customers with two or more products, and proportion of digitally connected customers. In their place, Aegon has introduced two new KPIs that align directlyis in line with the priority themes. With regardwork Aegon undertook during the year to climate change, we have introduced a weighted average carbon intensity metricstrengthen its non-financial reporting and controls. This includes preparations for the European Union’s Corporate Sustainability Reporting Directive (CSRD), which will apply to Aegon from the 2024 reporting year. The Board welcomes the progress made in this area, including the steps taken to mature the company’s double materiality assessment (DMA) process.
In the area of financial reporting, the implementation of IFRS 17, which became effective in January 2023, was another important focus for the Board of Directors. Having assisted Aegon extensively in preparing for the introduction of the new standards in 2022, our corporate fixed income and listed equity. For inclusion and diversity, the percentage of women in senior management is now included as a KPI.
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A strong foundation to begin the next chapter
The Board aboutwelcomes the measures takensteps Aegon took in 2023 to support Aegon’s long-term value creation strategydrive the business to its full potential and begin the next chapter of its transformation. I see clear signs of progress. Multiple expense savings initiatives have been implemented, putting the company on track to realize significant cost reductions by 2023.
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On behalf of those onthe members of the Board, I would once again like to thank AegonAegon’s employees around the world for their important contribution to the company’s purpose and strategic goals. As always, I am grateful to Aegon’s investors for their continued effortsconfidence in the company and its people as we work towardembark together on this next phase of our renewed purposetransformation.
The Hague, the Netherlands, April 3, 2024
William L. Connelly
Chairman Board of
![]() ![]() | About Aegon Governance and risk management Financial information Sustainability information | |||
Corporate governance
and Corporate Governance Statement
Aegon is incorporateda Bermuda exempted company with liability limited by shares, having its registered office in Hamilton, Bermuda. Aegon has its principal place of business in The Hague, the Netherlands, where its headquarters are. Aegon is registered with the Bermuda Registrar of Companies under number 202302830 and basedthe Dutch trade register under number 27076669. Aegon, as a Bermuda company, is subject to Bermuda law and its governance is predominantly determined by Bermuda law, its bye-laws, its memorandum of continuance and its board regulations. On December 31, 2023, Aegon qualified as a non-resident company under the Dutch Non-Resident Company Act, due to which certain Dutch legal requirements, mainly relating to drawing up the annual accounts in accordance with Title 9 of Book 2 of the Netherlands.Dutch Civil Code, will apply. As Aegon is a company established and listed in the Netherlands, Aegon must comply with Dutch law and is subject toBermuda, the Dutch Corporate Governance Code.
The shareholders
Listing and shareholder base
Aegon’s common shares are listed on Euronext Amsterdam and the New York Stock Exchange. Aegon has institutional and retail shareholders around the world. More than three-quarters of shareholders are located in Aegon’s three main markets,the United States, the Netherlands, United States, and the United Kingdom. Aegon’s largest shareholder is Vereniging Aegon, a Dutch association with a special purpose to protect the broader interests of the Companycompany (Aegon) and its stakeholders.
General Meeting of Shareholders
A General Meeting of Shareholders (the “General Meeting”) is held at least once a year and, if deemed necessary, the Supervisory or Executive Board of Directors (the “Board”) of the Company may convene an Extraordinary General Meeting of Shareholders.Meeting. The main function of the General Meeting of Shareholders is to decide on matters such as the adoption of annual accounts, the approval of dividend payments and (re)appointments to the Supervisory Board, appointment of the auditor, the amendments of the bye-laws, adoption of the remuneration policy, approval of resolutions of the Board entailing a significant change in the identity or character of the Company or its business and Executiveany issue of Aegon shares exceeding 10% of Aegon issued share capital unless the Board determines that the issuance of shares is necessary or conducive for purposes of safeguarding, conserving or strengthening the capital position of Aegon.
At every annual General Meetings of Shareholders are convened by public notice at least 42 days beforeMeeting, the Board shall present shareholders with the annual accounts to be discussed during the meeting. The convocation statesBoard shall also annually present shareholders with a remuneration report that shall be put
to an advisory vote, which shall not be binding on the timeBoard or the Company.
Convocation
A General Meeting must be convened at least 30 days prior to the day of the General Meeting and locationshall be called by way of a press release and publication on the website. The notice shall specify the place, day and time of the meeting, the record date, means of electronic communication and the agenda items, andof the procedures for admittance tomeeting. General Meetings will be convened by the meeting and representation at the meeting by means of a written proxy. Those shareholders who alone or jointly representBoard. Shareholders representing at least 1%ten per cent (10%) of Aegon’sthe paid-up share capital may request a General Meeting. Shareholders representing at least one per cent (1%) of the issued capital or a block of shares worth at least EUR 100 millionone hundred (100) or more shareholders jointly may request one or more items to be added to the agenda of a General Meeting of Shareholders. In accordance with Aegon’s Articles of Association, suchMeeting. Such a request willmust be granted if it is received in writing at least 60 daysby the Company not less than six (6) weeks before the meeting,
Record date
The record date is used to determine shareholders’ entitlements with regard to their participation and voting rights. In accordance with Dutch law, therights in a General Meeting. The record date is 28may be determined by the Board and may not be more than sixty (60) days before or later than twenty (20) business days before the day ofdate fixed for the General Meeting of Shareholders.
Attendance
Every shareholder is entitled to attend the General Meeting to speak and vote either in person or by proxy granted in writing. This includes proxies submitted electronically. All shareholders wishing to take part must provide proof of their identity and shareholding and must notify the Companycompany ahead of time of their intention to attend the meeting. Aegon also solicits proxies from New York registry shareholders in line with common practice in the United States.
Voting at the General Meeting
At the General Meeting, each common share carries one vote. In the absence of a Special Cause, Vereniging Aegon casts one vote for every 40 common shares B it holds.
42 | Annual Report on Form 20-F 2023
Corporate governance | ||||
The Board overseesof Directors
Aegon has a single tier Board consisting of eight Non-Executive Directors and one Executive Director. Details on the managementcomposition of the Executive Board in additioncan be found on page 48. Subject to the Company’sprovisions of the Bermuda Companies Act and the Company bye-laws, the Board manages and conducts the business of Aegon and corporate strategy.is responsible for the general affairs of the Company, which includes setting the strategy of the Company. The Supervisory Board mustmay exercise all the powers of the Company except those powers that are required by the Bermuda Companies Act or the Company bye-laws to be exercised by the General Meeting. The members of the Board owe a fiduciary duty to Aegon to act in good faith in their dealings with or on behalf of Aegon and exercise their powers and fulfil the duties of their office honestly. In the exercise of its duties the Board shall take into account the long-term consequences of decisions, sustainability and the interest of all corporate stakeholders. For the purposes of a Director’s duty to act in the way he considers, in good faith, is in the best interests of all Aegon stakeholders. The Supervisory Board operates accordingthe Company, the Director shall not be required to regard the principlesbenefit of collective responsibility and accountability.
Composition of the Supervisory Board
The General Meeting appoints the members of the Board. If the appointment of a member of the Board is proposed by the Board, the General Meeting resolution requires a simple majority of the votes cast, while otherwise, the resolution requires a two-thirds majority of the votes cast, which majority must represent more than half of the of the then issued and outstanding shares.
Members of the Supervisory Board arewill be appointed by the General Meetingfor a term of Shareholders, following nomination by the Supervisory Board itself.not more than four years and may be reappointed thereafter. After 12 years, a Non-Executive Director will no longer be considered independent. Aegon aims to ensure that the composition of the Company’s Supervisorycompany’s Board is in line with Aegon’s diversity policy for the Supervisory Board, Executive BoardInclusion and Management BoardDiversity Policy and is as such well-balanced in terms of professional background, geography, gender, and other relevant aspects of the diversitythis policy. A profile, which is published on
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The Board may, subject to its control, delegate all powers, authorities, and discretions relating to the day-to-day-operations and general business and affairs of Shareholders. In 2021, no transactions were concluded betweenAegon to Aegon’s Chief Executive Officer (the “CEO”). The Board oversees the Companyexecution of its responsibilities and delegated powers, authorities and discretions by the CEO and any other person or committee to which the Board has delegated any of its duties and responsibilities and is ultimately responsible for the fulfillment of the SupervisoryBoard’s duties by them.
Committees
The Board members. Furthermore, the Company did not provide loans or issue guarantees to any membershas four committees compromising solely of the Supervisory Board. At present, Aegon’s Supervisory Board consists of eight members, all of whom qualify as independent in accordance with the Dutch Corporate Governance Code.
Audit |
Risk |
Nomination and Governance Committee. |
Please see page 58 for the composition of the Board’s committees and the Board Report for more information on the functioning of these committees
The Chief Executive Board
The CEO is a member of the Board of Directors and is charged withresponsible for the overallday-to-day management and general business and affairs of the Company and the Group. In particular, the CEO is therefore responsible forentrusted with all of the Board’s powers, authorities, and discretions in relation to the operational running of the Company, particularly powers, authorities, discretions including but not limited to: the operational running of the Company and the Business, developing and executing Aegon’s strategy. Additionally, it is responsible for managing the Company’s risk profilestrategy for consideration, determination and overseeing any relevant sustainability issues. Each member has duties related to his or her specific areaapproval by the Board and the implementation of expertise.
The Executive Board, and Matt Rider, who is Chief Financial Officer (CFO).
The members of the Executive Board have an engagement agreement with the Company rather than an employment contract. The Company’s Remuneration Policy for the Executive Board limits exit arrangements to a maximum of one year of the fixed component of the salary.
Capital, significant shareholders, and exercise of control
As a publicly listed company, Aegon is required to provide the following detailed information regarding any structures or measures that may hinder or prevent a third party from acquiring the Companycompany or exercising effective control over it.
Annual Report on Form 20-F 2023 | 43 |
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The capital of the Company
Aegon has an authorized capital of EUR 1,080720 million, divided into 64 billion common shares and 32 billion common shares B, each with a nominal value of EUR 0.12. As of December 31, 2021,2023, a total of 2,106,313,1951,814,726,912 common shares and 568,839,440389,759,240 common shares B had been issued.
Depository receipts for Aegon shares are not issued with the Company’scompany’s cooperation.
As per the Dutch act onregarding the conversion of bearer shares, all 16,040 bearer shares outstanding at December 2020 have been converted into registered shares held by the Companycompany as per January 1, 2021. Until January 1, 2026, and upon request
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Each common share carries one vote. There are no restrictions on the exercise of voting rights by holders of common shares.
All issued and outstanding shares B are held by Vereniging Aegon, the Company’scompany’s largest shareholder. The nominal value of the common shares B is equal to the nominal value of a common share. This means that common shares B also carry one vote per share. However, the voting rights attached to common shares B are subject to restrictions as laid down in the Voting Rights Agreement, under which Vereniging Aegon may cast one vote for every 40 common shares B it holds in the absence of a Special Cause.
The financial rights attached to a common share B are one-fortieth (1/40th) of the financial rights attached to a common share. The rights attached to the shares of both classes are otherwise identical. For the purpose of the issuance of shares, reduction of issued capital, the sale and transfer of common shares B or otherwise, the value or the price of a common share B is determined as one-fortieth (1/40th) of the value of a common share. For such purposes, no account is taken of the difference between common shares and common shares B in terms of the proportion between financial rights and voting rights.
Significant shareholdings
On December 31, 2021,2023, Vereniging Aegon, Aegon’s largest shareholder, held a total of 301,774,161313,944,810 common shares and 538,250,640381,813,800 common shares B.
Under the terms of the 1983 Merger Agreement, as amended in May 2013, Vereniging Aegon has the option to acquire additional common shares B. Vereniging Aegon may exercise its call option to keep or restore its total stake to 32.6% of the
voting rights, irrespective of the circumstances that caused the total shareholding to be or become lower than 32.6%.
During 2021, two transactions were2023, the following agreements have been concluded between Aegon N.V. and Vereniging Aegon. Execution
On August 16, 2023, the members of these transactions was doneVereniging Aegon voted to instruct the board of Vereniging Aegon, subject to the board’s fiduciary duties, to vote all of Vereniging Aegon’s Common Shares and Common Shares B (based on one vote per 40 Common Shares B) at Aegon’s next extraordinary general meetings on extraordinary general meetings of September 29, 2023 and September 30, 2023 in compliance with all requirementsfavor of Best Practice 2.7.5Aegon’s redomiciliation from the Netherlands to Bermuda, by way of (i) a conversion into a Luxembourg S.A. followed by (ii) a conversion into a Bermuda Ltd. (the “Redomiciliation”). Following such vote of the Dutch Corporate Governance Code.
On December 15, 2021,8, 2023, Aegon N.V.entered into a share repurchase agreement with Vereniging Aegon, pursuant to which the Vereniging Aegon agreed to participate in the second and third tranche of the Aegon’s current 1.5 billion Euro share buyback program and Aegon agreed to repurchase a certain number of Common Shares from Vereniging Aegon for an aggregate consideration equal to EUR 139.5 million Euro which will be equally distributed over the total number of trading days during the remainder of the current share buy back program of Aegon. The number of Common Shares that Aegon will repurchase from Vereniging Aegon will be determined based on the daily volume-weighted average price per common share on Euronext Amsterdam on a weekly basis.
On December 18, 2023, Aegon repurchased 22,643,360112,619,440 common shares B from Vereniging Aegon for the amount of EUR 2,285,62114,804,951.58 based on 1/40th of the Value WeightWeighted Average Price of the common shares of the five trading days preceding this transaction. The repurchase of common shares B was executed to alignbring the aggregate holding of voting shares by Vereniging Aegon in Aegon N.V.more in line with its special cause voting rights of 32.6%. following the completion of the Share Buy Back Programs, initiated by Aegon in July 2023 following the completion of the transaction with a.s.r.
For an overview of other significant shareholders, please see paragraph “other major shareholders” in the chapter Major Shareholders on page 383.
44 | Annual Report on Form 20-F 2023
Corporate governance | ||||
Special control rights
The common shares and the common shares B offer equal full voting rights, as they have equal nominal value (EUR 0.12). The Voting Rights Agreement entered into between Vereniging Aegon and Aegon provides that under normal circumstances, i.e.that is, except in the event of a Special Cause, Vereniging Aegon is not allowed to exercise more votes than is proportionate to the financial rights represented by its shares. This means that in the absence of a Special Cause, Vereniging Aegon may cast one vote for every common share it holds and one vote only for every 40 common shares B it holds. In the event of a Special Cause, Vereniging Aegon may cast one vote for every common share and one vote for every common share B.
A Special Cause may include:
The acquisition by a third party of an interest in Aegon |
A tender offer for Aegon |
A proposed business combination by any person or group of persons, whether acting individually or as a group, other than in a transaction approved by the |
If Vereniging Aegon, acting at its sole discretion, determines that a Special Cause has arisen, it must notify the General Meeting of Shareholders. In this event, Vereniging Aegon retains full voting rights on its common shares B for a period limited to six months. Vereniging Aegon would, for that limited period, command 32.6% of the votes at a General Meeting of Shareholders.
Based on the Voting Rights Agreement, Vereniging Aegon has a right to, at its own discretion, take the decision to exercise its full voting rights on common shares B. Vereniging Aegon may exercise this right unilaterally and independent of Aegon N.V., and therefore also irrespective of any decisions of the Executive Board of Aegon N.V., including any decision whether or not to invoke a 180 or 250 day response time under the Dutch Corporate Governance Code or Civil Code.
Issue and repurchase of shares
In accordance with Bermuda law, the Board will be authorized to issue Aegon shares may be issued up to Aegon Ltd.’s authorized capital. However, the maximumbye-laws determine that any issue of the Company’s authorizedAegon shares exceeding 10% of Aegon’s issued share capital, following a resolution adopted by the General Meeting of Shareholders. Shares may also be issued followingrequires a resolution of the ExecutiveGeneral Meeting, unless the Board subjectdetermines that the issuance of shares is necessary or conducive for purposes of safeguarding, conserving or strengthening the capital position of Aegon. As a result, other than in the case as described in the previous sentence, any transaction which would require the issuance of more than 10% of Aegon’s issued share capital will require shareholder approval.
In September 2023, Aegon announced that it will propose an amendment to approval byits bye-laws on the Supervisory Board, providing, andAnnual General Meeting 2024, to include in the bye-laws that upon the issuance of common shares, each holder of common shares will have
pre-emptive rights in proportion to the extentnumber of common shares held by such shareholder and that the Board has been authorized to do so by the General Meeting of Shareholders. A resolution authorizing
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Aegon is entitled to acquire its own fully paid-up shares, providing it acts within existing statutory restrictions.the parameters set by Bermuda law and the Dutch Non-Resident Companies Act. In September 2023, Aegon confirmed that it will propose an amendment to its bye-laws at the Annual General Meeting of Shareholders usually authorize2024, to include in the Executive Boardbye-laws that a resolution to purchasedeclare a final dividend and a resolution regarding the Company’sacquisition of own shares under terms and conditions determined by Aegon will require an authorization from the General Meeting.
Transfer of shares
There are no restrictions on the transfer of common shares. Common shares B can only be transferred with the prior approval of Aegon’s Supervisory Board.
Aegon has no knowledge of any agreement between shareholders that might restrict the transfer of shares or the voting rights pertaining to them.
Significant agreements and potential change of control
Aegon is not party to any significant agreements that would take effect, alter, or terminate as a result of a change of control following a public offer for the outstanding shares of the Company,company, other than those customary in financial markets (for example, financial arrangements, loans, and joint venture agreements).
Share plan
Senior executives at Aegon companies and some other employees are entitled to variable compensation of which part is granted in the form of shares. For further details, please see the Remuneration Report on page 4962 and note 5044 of the notes to Aegon´sAegon’s consolidated financial statements of this Annual Report.on page 315. Under the terms of existing share plans the vesting of granted rights is predefined. The shares shall vest as soon as possible in accordance with payroll requirements of the relevant subsidiary after the adoption of the Company’scompany’s Integrated Annual Report at the Annual General Meetings of ShareholdersMeeting in the year of vesting of these shares.
Appointing, suspending, or dismissing Board members
The General Meeting of Shareholders appoints the members of both the Supervisory and Executive Boards, following nominationsBoard. If the appointment of a member of the Board is proposed by the Supervisory Board. These nominations are binding providing at least two candidates are nominated. TheBoard, the General Meeting of Shareholders may cancel the binding nature of these nominations with resolution requires
Annual Report on Form 20-F 2023 | 45 |
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a simple majority of two-thirds ofthe votes cast, representing at least one half of Aegon’s issued capital. The General Meeting may, in addition, bring forward a resolution to appoint someone not nominated by the Supervisory Board. In order for the resolution to be adopted,while otherwise, the resolution requires a two-thirds majority of the votes cast, representingwhich majority must represent more than half of the issued share capital. Members of the Board will be appointed for a term of not more than four years. If the removal or suspension of a member of the Board is proposed by the Board, the General Meeting resolution requires a simple majority of the votes cast, while otherwise, the resolution requires a two-thirds majority of the votes cast, which majority must represent more than half of the issued share capital.
Amending the bye-laws
The Board resolves on an amendment of the bye-laws. In order for such amendment to take effect, it must be approved by the General Meeting. An amendment of the memorandum of continuation needs to be approved by the Board and the General Meeting. Under Bermuda law, shareholders who, alone or jointly, represent at least one half 20%
of Aegon’s issued capital.
Diversity and Management and Control systems Management and Control Systems relating to financial reporting
Information on Management and control systems relating to the process of Aegon’s issued capital,
Diversity
Information on Diversity can be suspended by the Supervisory Board, although the General Meeting of Shareholders has the power to annul this suspension.
46 | Annual Report on Form 20-F 20212023
Sustainability governance | ||||
Sustainability governance
Key roles
Aegon’s Board of Directors has ultimate oversight over sustainability. Through its Nomination and Governance Committee, the Board of Directors is advised and kept appraised of business and regulatory developments regarding sustainability.
Advice on Aegon’s sustainability approach is provided by the Global Sustainability Board (GSB), which is supported by the Corporate Sustainability team. The GSB is a senior management committee established in December 2021, to enhance overall governance and oversight of Aegon’s company-wide approach to sustainability. The GSB meets quarterly and advises the Executive Committee on Aegon’s strategic sustainability approach, including the two priority themes: climate change, and inclusion and diversity. It is chaired by the CEO of the Americas and consists of senior-level representatives from across the company, including five members of the Executive Committee.
The GSB’s core function is to steer and strengthen the sustainability approach across Aegon’s business units, and it is supported by the local sustainability boards. This includes the validation of Aegon’s double materiality assessment as required by the CSRD. This includes the validation of Aegon’s double materiality assessment, which assesses sustainability measures, as required by the CSRD. Key actions include formulating sustainability-focused commitments, key performance indicators (KPIs), and targets; and tracking these.
Incentives
As per our Remuneration Policy for the Executive Director, at least 50% of the CEO variable compensation must be determined by non-financial performance indicators, where at least one must be ESG-related. Moreover, a significant risk or compliance incident related to ESG may result in a malus adjustment or claw-back of the CEO’s variable compensation.
Risk management
The Group Risk & Capital Committee (GRCC) oversees the Financial Risk Management’s climate scenarios that analyze the potential impacts of climate change on our financial accounts. The Non-Financial Risk Committee (NFRC) oversees Risk Governance’s annual climate risk assessment that identifies possible physical and transition risks that could impact Aegon.
The Compliance function conducts Aegon’s biennial Human Rights Risk Assessment. The Compliance function also annually assesses ethics and culture via the Systematic Integrity Risk Assessments (SIRA), part of which is to assure these are in compliance with the Code of Conduct and Aegon’s core values. This is also overseen by the NFRC.
Annual Report on Form 20-F 2023 | 47 |
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Composition of the Boards
Members of the Executive Board
Lard Friese (1962, Dutch)
CEO and Chairman of the Executive Committee, and Management Boards of Aegon N.V.
Matthew J. Rider (1963, American)
CFO and member of the Executive and Management Boards of Aegon N.V.
Matt Rider began his career at Banner Life Insurance Company and held various management positions at Transamerica, Merrill Lynch Insurance Group, and ING before joining Aegon. From 2010 to 2013, he was Chief Administration Officer and a member of the Management
Board at ING Insurance, based in the Netherlands. In this role he was responsible for
Mr. Rider joined Aegon on January 1, 2017, and was appointed asis CFO and member of the Executive BoardCommittee of Aegon at the Annual General Meeting of Shareholders of Aegon N.V. of May 19, 2017. During the 2021 Annual General Meeting (AGM), Mr. Rider was reappointed for another term of four years until the end of the AGM to be held in 2025.
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Elisabetta Caldera (1970, Italian)
Chief Human Resources Officer and member of the Management Board of Aegon N.V.
Elisabetta Caldera started her career in HRHuman Resources (HR) in 1994 at Foster Wheeler and soon moved to ABB Alstom.
In 2004, she joined Vodafone Italy where she was appointed Human Resources and Organization Director and member of the Management Board Vodafone Italy. Ms. Caldera moved
to Vodafone Group in the UK as Human Resources Director
Ms. Caldera joined Aegon as ofon June 1, 2021, as Chief HR Officer and is a member of Aegon’s Management Board, succeeding Ms. Carla Mahieu who stepped down as per June 1, 2021.
Ms. Caldera is a former member of the Supervisory Board of Renantis (formerly known as Falck Renewable since 2014.
Will Fuller (1970,(1971, American)
CEO of Aegon Americas and member of the Management Board of Aegon N.V.
Will Fuller has almost 30 years of experience in financial services, including life insurance, annuities, retirement plans and wealth management. Prior to joining Aegon, Mr. Fuller served as Executive Vice President of Lincoln Financial Group. His responsibilities included leading growth strategies, product and distribution innovation, and governance. His previous experience also includes Merrill Lynch, where he was responsible for product and distribution for Wealth Management in the Americas.
Mr. Fuller was appointed as a member of Aegon’s Management BoardExecutive Committee in March 2021. He has been actively engaged in the financial services industry, most recently in forming the Alliance for Lifetime Income. He formerly servedIncome were he serves as Operating Committee Chairman. Mr. Fuller is a board member of the American Council of Life Insurers and LL Global, Inc. (LIMRA/LOMA), and a former board member of Forum for Investor Advice, Money Management Institute, and Insured Retirement Institute.
1 | Per September 30, 2023, Aegon’s Management Board was renamed Executive Committee. |
48 | Annual Report on Form 20-F 2023
Composition of the Board and Executive Committee | ||||
Mike Holliday-Williams (1970, British)
CEO of Aegon Asset ManagementUK and member of the Management BoardExecutive Committee
Mike Holliday-Williams started his career with WHSmith in 1991 as a graduate trainee, working as a Retail Manager in many UK stores and in Business Development. In 1997, he joined Centrica where he had several general management and marketing roles in British Gas, before becoming the Residential & Marketing Director of Aegon N.V.
In 2006, Mr. Holliday-Williams joined RSA, becoming the UK Managing Director of Personal Lines in 2008, responsible
for MORE THAN, Partnerships, and the Broker businesses. In 2011, he moved to Copenhagen to become the CEO of Aegon Asset ManagementRSA Group’s Scandinavian businesses, Codan A/S and Member of the Aegon N.V. Management Board in June 2019. Having obtained a Master of Laws (2000)Trygg-Hansa, and an Executive MBA in 2007, Mr. NieuweWeme has worked in global investment management for 20 years.
Mr. Holliday-Williams joined Aegon UK in October 2019, to take over as CEO. He serves as vice-chairmanbecame a member of Aegon’s Executive Committee in March 2020.
Astrid Jäkel (1977, German)
Chief Risk Officer and member of the supervisory boardExecutive Committee
Astrid Jäkel has 20 years of La Banque Postalexperience in the European and global insurance sectors. She joined Aegon from the international management consultancy firm Oliver Wyman where she was a partner in the European Insurance and Asset Management and isPractice, co-leader of the European Insurance Financial Effectiveness team as well as a member of the Board of Oliver Wyman’s Swiss subsidiary. Her consulting work focused on high-impact risk, capital, asset liability and investment management topics. Ms. Jäkel worked
with leading European and global insurers on a broad range of projects to help transform and optimize their risk and balance sheet management capabilities for market, credit, insurance, and non-financial risks.
Ms. Jäkel was appointed CRO of Aegon Industrial Fundand member of the Aegon’s Executive Committee in March 2022. Her responsibilities include managing Aegon’s Group Risk and Actuarial functions, along with maintaining the Group’s Risk Management Co., Ltd (China).framework and overseeing the risk management capabilities.
Marco Keim (1962, Dutch)
CEO of Aegon International and member of the Executive Committee
Marco Keim began his career with accountancy firm Coopers & Lybrand/Van Dien, before moving to the aircraft manufacturer Fokker Aircraft and NS Reizigers, part of the Dutch railway company, NS Group.
In 1999, he joined Swiss Life in the Netherlands as a member of the Board and was appointed CEO three years later. Mr.
Keim was appointed CEO of DirectorsAegon the Netherlands and member of The Netherlands-America Foundation (NAF)Aegon’s Executive Committee in June 2008. From 2017 to 2020, Mr. Keim headed Aegon’s operations on mainland Europe. Since January 2020, Mr. Keim is responsible for Aegon’s insurance joint ventures in Brazil and China, its businesses in Spain & Portugal, its high-net-worth insurance business, as well as several ventures in Asia.
Mr. Keim is a former member of the Leadership CouncilSupervisory Board of AmeriCares, a non-profit disaster relief and global health organization.
Onno van Klinken (1969, Dutch)
General Counsel and member of the ManagementExecutive Committee
Onno van Klinken has almost 30 years’ experience providing legal advice to a range of companies and leading Executive Board offices. Mr. Van Klinken started his career at Allen & Overy, and previously worked for Aegon between 2002 and 2006.
He then served as Corporate Secretary for Royal Numico, before it was acquired by Groupe Danone. His next position was as General Counsel for the Dutch global mail and express group TNT, where he served from 2008 until the legal demerger of the group in 2011. This was followed
by General Counsel positions at D.E. Master Blenders 1753 and Corio N.V.
Mr. Van Klinken rejoined Aegon N.V.
Annual Report on Form 20-F 2023 | 49 |
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Bas NieuweWeme (1972, Dutch) Global CEO of Aegon Asset Management and member of the Executive Committee Bas NieuweWeme was appointed Global CEO of Aegon Asset Management and member of the Executive Committee in June 2019. Having obtained a Master of Laws (2000) and an Executive MBA in 2007, Mr. NieuweWeme has worked in global investment management for more than 20 years. The majority of this time was spent in various management positions within ING Investment Management Americas and Voya Investment Management. In 2016, he was named Global | Head of the Client Advisory Group and a member of the management team at PGIM Fixed Income and Global Head of the Institutional Relationship Group at PGIM, Prudential Financial’s global investment management business. He serves as Vice-Chairman of the supervisory board of La Banque Postal Asset Management. He is also a member of the Board of Directors of The Netherlands-America Foundation (NAF), a member of the Leadership Council of AmeriCares, a non-profit disaster relief and global health organization, and a member of the advisory council of Diversity Project Europe. |
Duncan Russell (1978, British) Chief Transformation Officer and member of the Executive Committee Duncan Russell has worked most of his professional career in the financial services sector, lastly as CFO and Board member at Admiral Financial Services, the financial services subsidiary of Admiral Group, a UK based insurance company, responsible for finance, analytics, funding, credit risk and pricing. | Before joining Admiral Group, Mr. Russell was Head of Group Strategy and Corporate Finance at NN Group N.V., the Netherlands, where he was responsible for capital management, treasury, M&A, and the group’s strategy. Before joining NN Group N.V., Mr. Russell held various positions at financial services groups in London. Mr. Russell was appointed Chief Transformation Officer and member of the Executive Committee of Aegon on August 2020. |
Deborah Waters (1967, American) Chief Technology Officer and member of the Executive Committee Deborah Waters began her career at aerospace group Lockheed Martin in 1989 before moving to software consultancy group Seer Technologies. In 1995, she joined Citigroup Inc., where she held various technology leadership positions in the intervening years. Most recently she served for over five years as Citi’s Global Head of Private Bank Operations and Technology. Additionally, Ms. Waters was the Head of Inclusion and Diversity for Citi’s Institutional Client Group Operations and Technology. | Previous roles include leading Client Centric and Equities Technology, supporting the Equities, Research, Commercial Bank, Citi Velocity, and Markets Sales businesses. She also served as the Chief Operating Officer for the Markets Technology organization during her tenure there. Before moving to Markets Technology, Ms. Waters managed Markets and Operational Risk Technology for the organization where she started as a developer of risk solutions. Ms. Waters joined Aegon as of February 2022 as Chief Technology Officer and is a member of Aegon’s Executive Committee. Ms. Waters is member of the Board of Directors of RanMarine Technology BV (not-listed). |
50 | Annual Report on Form 20-F 20212023
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Board of the Supervisory Board
William L. Connelly (1958, French)
Chairman of the Supervisory Board
Chairman of the Nomination and Governance Committee Member of the RemunerationCompensation and Human Resource Committee
Bill Connelly started his career at Chase Manhattan Bank, fulfilling senior roles in commercial and investment banking in France, the Netherlands, Spain, the United Kingdom, and the United States. He was appointed to Aegon’s Supervisory Board
in 2017 and became Chairman in May 2018 and his2018. His current term ends in 2025.
Mr. Connelly is also chairman of the Supervisory Board of Directors, chairman of the Nomination and Governance Committee and member of the Supervisory Board RemunerationCompensation and Human Resource Committee. Mr. Connelly is also an independent directorDirector at the Board of Directors of Société Générale, an independent director at the Board of Directors of Singular Bank S.A. (formerly known as Self Trade Bank S.A., non-listed) and Chairman of the Board of Directors of Amadeus IT Group S.A.
Lard Friese (1962, Dutch)
CEO and Chairman Global Origination of Bankthe Executive Committee, and (executive) member of America/Merrill Lynch. Before joining Bankthe Board of America/ Merrill Lynch,Directors
Lard Friese earned a Master of Laws degree at the University of Utrecht. He has worked most of his professional career in the insurance industry, including 10 years at Aegon between 1993 and 2003. He was employed by ING as from 2008, where he held various rolespositions. In July 2014, upon the settlement of the Initial Public Offering of NN Group N.V., he became the CEO of NN Group. During his tenure at NN Group, he led a wide range of businesses in Europe and Asia and created a stable platform for growth and shareholder value.
He has extensive experience in the USareas of insurance, industry. These mostly entailed working in corporate finance at large US financial institutions, where heinvestment management, customer centricity, mergers and acquisitions, and business transformation. Mr. Friese was engaged in M&A adviceappointed CEO Designate as of March 1, 2020, and transactions, together with equity and debt raisings for insurance companies. He was a Managinghas been appointed Executive Director and Co-Head of the Global Financial Institutions GroupBoard until the end of Credit Suisse First Boston,the AGM to be held in 2024. Mr. Friese is CEO and a founding partnerChairman of Barrett Ellman Stoddard Capital Partners.
Mr. Ellman was appointed to Aegon’s Supervisory Board in 2017, and his current term ends in 2025. HeFriese is also a member of the Supervisory Board Risk Committee and the Supervisory Board Nomination and Governance Committee. Mr. Ellman was a non-executive director of Aegon USA from 2012 to 2017.
Corien M. Wortmann-Kool (1959, Dutch)
Vice Chairman of the Supervisory Board of Royal Vopak N.V. In addition, Mr. NoteboomDirectors
Member of the Audit Committee
Member of the Nomination and Governance Committee
Corien M. Wortmann-Kool was Chairman of the Board of Stichting Pensioenfonds ABP, the Dutch public sector collective pension fund until December 2022, and is a former Member of the European Parliament and Vice President on Financial, Economic and Environmental affairs for the EPP Group (European People’s Party). She was appointed to Aegon’s Board in May 2014, and her current term ends in 2024.
She is Vice Chairman of the Board of Directors, and a member of the Audit Committee and the Nomination and Governance Committee.
Ms. Wortmann-Kool is a member of the Board of Directors of VUmc Cancer Center AmsterdamDSM-Firmenich AG., Chairperson of the Supervisory Board of Netspar, and a member of the ChairmanAdvisory Committee of Stichting Prioriteit Ordina Groep. Mr. Noteboomthe Financial Markets Authority. She is a former member of the Supervisory BoardsBoard of Wolters Kluwer N.V.Het Kadaster, and Royal Ahold Delhaize N.V.a former member of the Supervisory Board of Save the Children Nederland.
1 | Per September 30, 2023, Aegon’s Supervisory Board transitioned to the Board of Directors following redomiciliation to Bermuda. |
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Mark A. Ellman (1957, American) Member of the Nomination and Governance Committee Member of the Risk Committee Mark A. Ellman is a former Vice Chairman Global Origination of Bank of America/Merrill Lynch. Before joining Bank of America/Merrill Lynch, he held various roles in the US insurance industry. These mostly entailed working in corporate finance at large US financial institutions, where he was engaged in M&A advice and transactions, together | with equity and debt raisings for insurance companies. He was a founding partner of Barrett Ellman Stoddard Capital Partners. Mr. Ellman was appointed to Aegon’s Board in 2017, and his current term ends in 2025. He is a member of the Risk Committee and the Nomination and Governance Committee. Mr. Ellman was a Non-Executive Director of Aegon USA from 2012 to 2017. |
Karen Fawcett (1962, British) Member of the Risk Committee Member of the Compensation and Human Resource Committee Karen Fawcett was formerly CEO Retail, Brand and Marketing for Standard Chartered Bank, which focused primarily on Asia, Africa, and the Middle East. Her broad career across complex global businesses covers wholesale and retail banking, global strategy, technology transformation, and brand and marketing. Prior to her career in banking, Ms. Fawcett was Partner at global management and information technology consultancy firm Booz, Allen & Hamilton, where she advised | insurers, banks, and asset managers on a wide range of strategic, technological, and operational transformations. Ms. Fawcett was appointed to Aegon’s Board in May 2022 and her current term ends in 2026. She is a member of the Compensation and Human Resource Committee and a member of the Risk Committee. Ms. Fawcett holds several non-executive director positions, with a portfolio across financial services and digital transformation, education, and climate change mitigation. These positions are with the following non-listed entities: the LGT Group Foundation; Temus; Global Evergreening Alliance; and BetterTradeOff. Ms. Fawcett is a former member of the Board of Directors of INSEAD. |
Jack McGarry (1958, American) Chairman of the Audit Committee Member of the Compensation and Human Resource Committee Jack McGarry is a former actuary who spent the majority of his career at Unum Group, an NYSE-listed provider of workplace financial protection benefits. He has held various leadership roles in risk management, in finance, as CEO of Unum’s business in the United Kingdom, and CEO of Unum’s Closed Block. His last position at Unum was as Chief Financial Officer (CFO). As CFO, he successfully led the transformation of the | finance organization by outsourcing transactional processes, driving automation across the organization, implementing accounting and financial planning & analysis platforms and modelling, and navigating the company through the implementation of tax reform. This experience underscores his in-depth knowledge of the insurance industry and his integral perspective on managing an insurance company. Mr. McGarry was appointed to Aegon’s Board in June 2021, and his current term ends in 2025. Mr. McGarry is Chairman of the Audit Committee and member of the Compensation and Human Resource Committee. |
52 | Annual Report on Form 20-F 20212023
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Caroline Ramsay (1962, British)
Chairman of the Risk Committee
Member of the Audit Committee
Caroline Ramsay gained a Master’s degree in Natural Sciences in 1984 at Cambridge. She started her professional career at KPMG in Ipswich and London, where she qualified as a Chartered Accountant in 1987. During her long career, Mrs.Ms. Ramsay gained substantial experience in Finance and Audit at large insurance companies. In addition to her strong financial background, Mrs.Ms. Ramsay acquired extensive managerial expertise in executive roles at Norwich Union plc (now Aviva plc) and RSA.
Ms. Ramsay holds various Non-Executive Board positions. In 2013, she joined the board of Scottish Equitable – and as of 2017 also the boards of Aegon UK plc and Cofunds Ltd. – where she served as the Audit Committee Chair until
May 14, 2020. Mrs.Ms. Ramsay was appointed to Aegon’s Supervisory Board in May 2020 and her current term ends in 2024. She is Chairserved as Chairman of the Supervisory Board Audit Committee and as a member of the Risk Committee until August 2023 and is currently Chairman of the Risk Committee and a member of the Supervisory Board RiskAudit Committee.
Ms. Ramsay is senior independent directorDirector of the Board of Brit Syndicates LtdLtd. (non-listed), a member of the Board of Directors of Ardonagh Specialty Holdings Ltd. (non-listed), and a member of the Board of Directors of Tesco Underwriting Ltd. (non-listed). Ms. Ramsay is a member of the FCA Regulatory Decisions Committee and member of the Payment Systems Regulator’s Enforcement Decisions Committee. Ms. Ramsay is a former member of the Board of Directors of Aberdeen UK Smaller Companies Growth Trust Plc, and a member of the Board of Directors of Tesco Underwriting Ltd. (non-listed). Mrs. Ramsay is a member of the FCA Regulatory Decisions Committee and Member of the Payment Systems Regulator’s Enforcement Decisions Committee.plc.
Thomas Wellauer (1955, Swiss)
Member of the Audit Committee
Member of the RemunerationCompensation and Human Resource Committee
Thomas Wellauer started his professional career at McKinsey & Company, where he served as Senior Partner and Practice Leader. He held various executive management positions at multi-industries, including financial services, pharmaceuticals, and chemicals. Among others, he served on the executive committeesExecutive Committees of Winterthur, Insurance, Credit Suisse, Novartis, and Swiss Re, and Novartis.Re. His most recent position from 2010 to 2019 was Group Chief Operating Officer of Swiss Re. During his career, Mr. Wellauer also served as independent director
Director on the boards of several global companies such as Munich Re and Syngenta.
Mr. Wellauer was appointed to Aegon’s Supervisory Board in May 2020, and his current term ends in 2024. He is a member of the Supervisory Board Audit Committee and a member of the Supervisory Board RemunerationCompensation and Human Resource Committee.
Mr. Wellauer is Chairman of the Board of Directors of SIX Group (non-listed). In addition, he serves as(not listed), and Chairman of the Board of Trustees of the University Hospital Zurich Foundation andFoundation. Mr. Wellauer is the former Chairman of the International Chamber of Commerce in Switzerland.
Dona D. Young (1954, American)
Chairman of the Supervisory Board
Member of the Nomination and Governance Committee
Dona D. Young is an executive/board consultant and retired Chairman, President, and Chief Executive Officer of The Phoenix Companies, which was an insurance and asset management company at the time of her tenure. She was appointed to Aegon’s Supervisory Board in 2013, and her current term will end in 2023.2025.
She is ChairChairman of the Supervisory Board RiskCompensation and Human Resource Committee, member of the Nomination and Governance Committee, and member of the Supervisory Board Nomination and GovernanceRisk Committee.
Ms. Young is member and Lead DirectorChairman of the Board of Directors of Foot Locker, Inc, serves as a member of the Board of Directors of Spahn and Rose (non-listed), and as a member of the Board of Directors of USAA (non-listed).Inc. Furthermore, Ms. Young is a member of the Audit CommitteeDirector of the Board of Trustees of Save the Children US (non-listed)Spahn & Rose Lumber Company (not listed), member of the Board of Save the Children International and Save the Children Association (non-listed) and a member of the Board of the National Association of Corporate Directors, and independent Director of the Board of Directors of USAA.
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Report of the Board of Directors
On June 30, 2023, Aegon announced its intention to change its legal domicile from the Netherlands to Bermuda to facilitate the transfer of Aegon’s group supervision from the Dutch Central Bank to the Bermuda Monetary Authority. The change in legal domicile was effectuated
following the approval from the Shareholders for the cross-border conversion during the Extraordinary General Meetings of Shareholders held on September 29 and September 30, 2023.
Following the redomiciliation, Aegon, as a Bermuda Ltd., is subject to Bermuda law and its governance is predominantly determined by Bermuda law, its Bye-Laws, and its Board Regulations.
Board of Directors
Aegon has a one-tier board consisting of nine Directors. Aegon’s independent Non-Executive Directors are the former Aegon N.V. Supervisory Board members, and Aegon’s CEO, Lard Friese, has joined the Board as the sole Executive Director.
The Board manages and conducts the business of the Company and is responsible for the general affairs of the Company, which includes setting and evaluating the Company’s strategy, management’s policies, and the effectiveness with which management implements its policies and overseeing compliance with legal and regulatory requirements.
The Board has four committees, comprising solely of Non-Executive Directors: the Audit Committee, the Risk Committee, the Nomination and Governance Committee, and the Compensation and Human Resource Committee. The committees report to the Board on their activities, identifying any matters on which they consider action or improvements are needed, and making recommendations to the Board as to the steps to be taken. For more information about the functioning of the committees, please see the Committee Charters on aegon.com.
2023 topics
2023 has been an important year of transition for Aegon and the Board. A significant amount of time was allotted to the items listed below.
Redomiciliation and group supervision
The Board discussed in depth the redomiciliation of the legal seat with management and external advisors during additional meetings outside the regular cycle of meetings. Following the closure of the transaction with a.s.r., Aegon no longer had a regulated insurance business in the Netherlands. Under EU Solvency II insurance regulation, DNB could no longer act as group supervisor and thus a new group supervisor was required. The Board, together with management, explored various options and their viability to support Aegon’s global strategy.
Following discussions in the college of supervisors, the Bermuda Monetary Authority (BMA) informed Aegon that it would become its group supervisor after transferring Aegon’s legal seat to Bermuda. The Board, in close consultation with Aegon’s leadership and external advisors, concluded that the proposed move is in the best interest of the company’s stakeholders and provides the company with the stability needed to continue executing its strategy. The transfer of the legal seat to Bermuda allows Aegon to maintain its headquarters in the Netherlands.
Governance and stakeholder management
The Board and management have engaged extensively with shareholders and other stakeholders on the redomiciliation and the governance structure of Aegon Ltd. The Board has taken into account the feedback received form stakeholders with respect to Aegon’s initial plans regarding governance. Based on the feedback, it was decided to include a binding vote on Aegon Ltd.’s remuneration policy at least every four years, and a binding vote on major acquisitions and divestments in Aegon Ltd.‘s bye-laws. Furthermore, the Board committed to submit for approval to the first Aegon Ltd. general meeting of shareholders to be held in 2024 an amendment to the Aegon Ltd. bye-laws, to include the following provisions: (i) introduction of pre-emptive rights for the issuance of common shares (ii) shareholder approval for
54 | Annual Report on Form 20-F 20212023
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share buy-backs and (iii) shareholder approval for annual final dividend payments. It was further taken into account that the redomiciliation allowed the company to maintain its listings on Euronext Amsterdam and the NYSE, bringing stability to our shareholders, and to remain a Dutch tax resident. The Board of Aegon therefore concluded that the move is in the best interest of shareholders, and provides stability for the group to continue to execute upon its announced strategy. More generally, stakeholder engagement continues to be an important topic for the Board and stakeholder interests are taken into account in the decision making process.
Sustainability
Sustainability is a central element of our strategy and an area of specific attention for the Board. The Board has ultimate oversight over sustainability and is advised and kept appraised of business and regulatory developments regarding sustainability through its Nomination and Governance Committee. Other committees also address wider social and governance matters, as linked to their area of responsibility. In 2023, the Board was regularly updated on the progress of Aegon’s Sustainability approach and relevant sustainability developments. These updates included discussions on the double materiality assessment and resultant material sustainability themes, progress on Aegon’s key sustainability metrics and the controls related to sustainability reporting. The wider governance of sustainability is described on page 47 of this report and this structure drives delivery of the SupervisoryAegon’s sustainability ambitions and alignment on sustainability across the business. The Board supports Aegon’s approach to sustainability and consequently considers sustainability issues in its decision-making.
IFRS 17 accounting
On July 12, 2023, Aegon published its financial supplement for both half-year and full-year 2022 under the IFRS 9 and IFRS 17 accounting standards that became effective on January 1, 2023. The Board had many interactions with management on the implementation of the new accounting standard, the implications for Aegon, and industry comparison. IFRS 17 is the first international accounting standard for insurance contracts and aims to create more consistency and comparability between companies. While the new accounting standard will impact Aegon’s financial reporting, it will not impact its strategy, capital management approach, financial targets, nor its outlook. The Board was well informed about the new accounting standard and frequently discussed the financial IFRS results and disclosures. The Board is very pleased with Aegon’s hard work and proven flexibility which resulted in a well-managed implementation process.
Other 2023 topics
In addition, the Board addressed, among others, the following topics in 2023:
§ | The implementation of the a.s.r. transaction, including transition reports; |
§ | The one-tier governance structure, including the Bye-laws, the Board Regulations, and other corporate governance matters; |
§ | The remuneration philosophy and framework, executive remuneration, and succession planning; |
§ | Communication and stakeholder management with regard to the redomiciliation; |
§ | The self-evaluation of the 2022 Board performance; |
§ | The global employee survey results and the HR plan; |
§ | The Annual Report 2022; |
§ | The Group target operating model; |
§ | The strategic preparations and communication related to the June 2023 Capital Markets Day, emphasizing the Transamerica strategy, performance, and growth ambitions; |
§ | Brand architecture; |
§ | The regular business updates; |
§ | The group strategic deliberations and considerations; |
§ | The approval of the 2022 financial results, the 2023 interim financial results, and the (interim) dividends; |
§ | The funding plan and funding authorization; |
§ | Capital generation and solvency capital positions; |
§ | Enterprise risk management, information security, and cybersecurity; |
§ | The Budget and Medium Term Plan; |
§ | Human resources, including talent development, organizational health developments, cultural change, and diversity; |
§ | Regulatory changes at both regional and global levels; |
§ | Tax policy and developments; |
§ | Technology and strategy, developments, and innovations; and |
§ | The active management of the business portfolio, including acquisitions, divestments, and balance sheet transactions. |
Independent Auditor
During the 2023 AGM, Ernst & Young Accountants LLP was appointed as Aegon N.V.’s independent auditor for the Annual Accounts 2024 through 2028. Following the redomiciliation, the Board proposed for approval to the shareholders meeting the appointment of auditor PricewaterhouseCoopers Accountants N.V. as the independent auditor of Aegon Ltd. for the Annual Accounts of 2023 and to appoint Ernst & Young Accountants LLP as independent auditor of Aegon Ltd. for the Annual Accounts of 2024. Both proposals were approved by the general meeting of shareholders in September 2023.
2024 focus areas
In 2024, Aegon will continue its transformation process. Focus will be on the business units delivering on their ambitions in line with the budget/medium term plan. The Board will closely monitor the growth developments and the
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value creation of the individual business units and the further strengthening of the economic balance sheet. Following the redomiciliation, the Board will discuss enhancements to the governance structure while continuing to comply with new and existing regulations. This includes setting the proposal for a new remuneration framework, and making adjustments to the bye-laws and other corporate governance charters. Other areas of attention relate to (IT) security, data protection, hedging programs, financial and sustainability reporting, (IFRS) accounting, controls, and employee wellbeing. Also, the Board will follow external developments, such as artificial intelligence, and discuss potential risks to the company, such as climate risk, and geopolitical developments.
Process and meetings
The Supervisory Board and the Committee meetings are scheduled on a regular basis and the agendas are mostly based of a rolling calendar. The meeting schedule is entrusted with supervisingset two years in advance and advisingallows for sufficient flexibility to address both regular and non-routine matters. Board papers are often submitted well in advance of the Executive Board regardingmeetings and are distributed and filed by the board office under the management of the Company and overseeing Aegon’s strategy andSecretary. On the general course of its businesses.
Composition of the Supervisory Board and Executive Board
The compositionComposition of the Supervisory Board is discussed regularly in Board meetings and in particular by the Nomination and Governance Committee. All members of the Supervisory Board are considered independent under the terms of best practice provisions 2.1.7, 2.1.8 and 2.1.9 of the Dutch Corporate Governance Code. In compliance with the Dutch Corporate Governance Code, members of the Supervisory Board are appointed by shareholders for a term of four years. The option exists to reappoint members for one additional four-year
During the Extraordinary General Meeting of Shareholders dated September 29, 2023, all the current Board members were appointed to the AGM,Board of Directors of Aegon Ltd. in line with the Supervisory Board consideredretirement schedule of the constructive and active way in which Ms. Young contributes as a membermembers of the Supervisory Board andof Aegon N.V. or with the term for which the Chief Executive Officer was appointed as Chairmember of the Risk Committee. Ms. Young’s extensive knowledgeExecutive Board of Aegon N.V.
On November 9, 2023, the Board announced to propose to its 2024 Annual General Meeting the appointment of Mr. Albert Benchimol as a Non-Executive member of the Aegon organization, her experience from other non-executive positions,Board of Directors.
On March 1, 2024, the Board announced it intends to nominate Lard Friese for re-election as Executive Director and her expertise inCEO at the areas of governance, board succession planning and board composition also supported the proposal2024 Annual General Meeting, for reappointment.
An induction program for new Supervisory Board membersDirectors is in place. The program is regularly updated to reflect changes in the environment in which Aegon operates, including regulatory changes. The program is tailored to the needs of individual Board members.
An overview of the Executive Board, and Mr. Matthew J. Rider, Chief Financial Officer (CFO). During the Annual General Meeting on June 3, 2021, Mr. Matthew J. Rider was reappointed as membercomposition of the Executive Board for a term of four years until the endDirectors in 2023 can be found on page 48 of this Integrated Annual Report. The retirement schedule is available as part of the AGM to be held in 2025. Members of the Executive Board are appointed by shareholders for a term of four years, with the option of reappointment for additional four-year terms. The appointment schedule and other information about members of the Executive Board are availableRegulations on
56 | Annual Report on Form 20-F 20212023
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The table underneath depicts, among other things, the tenure, the attendance of the board members, and the number of meetings
Name | Regular SB meeting | Audit Committee | Member | Risk Committee | Member | Combined Audit & Risk Committee | Remuneration Committee | Member | Nomination & Governance Committee | Member | Additional SB mtgs. / calls | |||||||||||||
Total no. Mtgs. | 7 | 5 | 4 | 1 | 6 | 6 | 2 | |||||||||||||||||
SB members 1) | ||||||||||||||||||||||||
Mr. William Connelly | 7/7 | 6/6 | v | 6/6 | Chair | 2/2 | ||||||||||||||||||
Mr. Mark Ellman | 7/7 | 4/4 | v | 1/1 | 6/6 | v | 2/2 | |||||||||||||||||
Mr. Jack McGarry 2) | 3/3 | 2/2 | v | 1/1 | 3/3 | v | 2/2 | |||||||||||||||||
Mr. Ben Noteboom | 7/7 | 4/4 | v | 1/1 | 6/6 | Chair | 2/2 | |||||||||||||||||
Ms. Caroline Ramsay | 7/7 | 5/5 | Chair | 4/4 | v | 1/1 | 2/2 | |||||||||||||||||
Mr. Thomas Wellauer | 7/7 | 5/5 | v | 1/1 | 6/6 | v | 2/2 | |||||||||||||||||
Ms. Corien Wortmann | 7/7 | 5/5 | v | 1/1 | 6/6 | v | 2/2 | |||||||||||||||||
Ms. Dona Young 2) | 7/7 | 3/3 | 4/4 | Chair | 1/1 | 6/6 | v | 2/2 |
unit | 2023 | 2022 | % | |||||||||||||||||||||||||||||
Board members1) | ||||||||||||||||||||||||||||||||
Board of Directors | ||||||||||||||||||||||||||||||||
Executive Board members | ||||||||||||||||||||||||||||||||
Total members | nr | 1 | 2 | (50% | ) | |||||||||||||||||||||||||||
Average tenure | years | 4 | 4 | (6% | ) | |||||||||||||||||||||||||||
Average age | years | 61 | 60 | 3% | ||||||||||||||||||||||||||||
Non-executive Board members | ||||||||||||||||||||||||||||||||
Total members | nr | 8 | 9 | (11% | ) | |||||||||||||||||||||||||||
Proportion of independent non-executive members | % | 100% | n.a. | n.a. | ||||||||||||||||||||||||||||
Average tenure | years | 6 | 4 | 33% | ||||||||||||||||||||||||||||
Average age | years | 65 | 64 | 2% | ||||||||||||||||||||||||||||
Executive Committee | ||||||||||||||||||||||||||||||||
Total members | nr | 11 | 12 | (8% | ) | |||||||||||||||||||||||||||
Average tenure | years | 5 | 4 | 17% | ||||||||||||||||||||||||||||
Average age | years | 54 | 52 | 3% | ||||||||||||||||||||||||||||
Board gender diversity | ||||||||||||||||||||||||||||||||
Board of Directors2) | ||||||||||||||||||||||||||||||||
Number of women in Board of Directors | nr | 4 | n.a. | n.a. | ||||||||||||||||||||||||||||
Proportion of women in Board of Directors | % | 44% | n.a. | n.a. | ||||||||||||||||||||||||||||
Executive Committee3) | ||||||||||||||||||||||||||||||||
Number of women in Executive Committee | nr | 3 | 4 | (25% | ) | |||||||||||||||||||||||||||
Proportion of women in Executive Committee | % | 27% | 33% | (6pp | ) | |||||||||||||||||||||||||||
Board oversight | ||||||||||||||||||||||||||||||||
Board of Directors | ||||||||||||||||||||||||||||||||
Number of regular meetings4) | nr | 2 | n.a. | n.a. | ||||||||||||||||||||||||||||
Proportion of regular meetings fully attended | % | 100% | n.a. | n.a. | ||||||||||||||||||||||||||||
Supervisory Board | ||||||||||||||||||||||||||||||||
Number of regular Supervisory Board meetings | nr | 5 | 7 | (29% | ) | |||||||||||||||||||||||||||
Proportion regular Supervisory Board meetings fully attended | % | 100% | 100% | 0pp | ||||||||||||||||||||||||||||
Audit Committee | ||||||||||||||||||||||||||||||||
Number of meetings | nr | 6 | 6 | 0% | ||||||||||||||||||||||||||||
Proportion of meetings fully attended | % | 100% | 100% | 0pp | ||||||||||||||||||||||||||||
Risk Committee | ||||||||||||||||||||||||||||||||
Number of meetings | nr | 5 | 6 | (17% | ) | |||||||||||||||||||||||||||
Proportion of meetings fully attended | % | 80% | 100% | (20pp | ) | |||||||||||||||||||||||||||
Compensation and Human Resource Committee5) | ||||||||||||||||||||||||||||||||
Number of meetings | nr | 6 | 6 | 0% | ||||||||||||||||||||||||||||
Proportion of meetings fully attended | % | 100% | 100% | 0pp | ||||||||||||||||||||||||||||
Nomination and Governance Committee | ||||||||||||||||||||||||||||||||
Number of meetings | nr | 6 | 6 | 0% | ||||||||||||||||||||||||||||
Proportion of meetings fully attended | % | 100% | 100% | 0pp | ||||||||||||||||||||||||||||
Number of additional meetings/calls6) | nr | 14 | 17 | (18% | ) | |||||||||||||||||||||||||||
Proportion of additional meetings/calls fully attended | % | 71% | 76% | (5pp | ) |
1 | Aegon changed its governance structure to a one-tier Board of Directors as a consequence of the redomiciliation to Bermuda. The Board of Directors consists of independent Non Executive Board members, previously known as the Supervisory Board, and the Executive Board member - the CEO. The Board of Directors is |
2 | The Board of Directors includes both an Executive Board member |
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The Executive Committee was previously named Management Board. |
As a result of the one-tier board structure and the |
This committee was previously named the |
6 | Throughout the year several sub-committee and ad-hoc meetings were scheduled to discuss - among other things - strategy-related topics. |
Annual |
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The Committees
The Board convened to discuss the fourth quarter 2020 results. In March 2021, the Supervisory Board, in the presencehas four committees, comprising solely of PwC, reviewed and adopted Aegon’s 2020 Annual Report, the Consolidated Financial Statements of Aegon N.V., and the Financial Statements of Aegon N.V. In May, August and November, the Supervisory Board reviewed Aegon’s first, second and third quarter 2021 results respectively based on the recommendation ofNon-Executive Directors: the Audit Committee.Committee, the Risk
Committee, the Supervisory Board and Management Board reviewed the Company’s Medium Term Plan, which included the budget and capital plan for 2022. The Boards took note of the uncertainties and challenges in the coming years as described in the Plan. These included, among others: ongoing COVID-19 developments, increased regulatory requirements,
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The Audit Committee the Board will also closely follow the developments regarding the implementation of IFRS 17. Other items that will receive special attention in 2022 are cultural change and the wellbeing of employees.
Board members | 2023 | 2022 | ||||||||||||||
Jack McGarry | Chairman | V | ||||||||||||||
Caroline Ramsay | V | Chairman | ||||||||||||||
Thomas Wellauer | V | V | ||||||||||||||
Corien Wortmann-Kool | V | V |
The Audit Committee primarily relies on oversight and advice from the Risk Committee for these topics, which is in line with the Dutch Corporate Governance Code.
Role and responsibilities
Aegon has both an Audit Committee and a Risk Committee, the risk management responsibilities outlined in the Dutch Corporate Governance Code are assigned to the Risk Committee. With regard to the oversight of the operation of the risk management framework and risk control systems, including supervising the enforcement of relevant legislation and regulations, the Audit Committee operates in close coordination with the Risk Committee. Certain Board members participate in both committees and a combined meeting of the Audit Committee and Risk CommitteesCommittee is scheduled on an annual basis.
The main role and responsibilities of the Audit Committee are to assist and advise the Supervisory Board in fulfilling its oversight responsibilities regarding:
§ | The integrity and quality of the consolidated financial statements for the Group; |
§ | The effectiveness of the design, operation, and appropriateness of the enterprise risk management framework and internal control systems of the Group, including supervising the enforcement of the relevant legislation and regulations, supervising the operation of the code of conduct, and monitoring the internal control over financial reporting; |
§ | The disclosure of financial and non-financial information by the Group, including but not limited to the choice of accounting policies, application, and assessment of the effects of new rules, information about the handling of estimated items in the annual accounts, forecasts, and work of the External and Internal Auditors; |
§ | Compliance with recommendations and observations and following up on comments of Internal and External Auditors, including the review of compliance and complaints (whistleblowing) procedures and reports; |
§ | The role and functioning of the internal audit function; |
§ | The policy of the Company on tax planning; |
§ | Actuarial matters; |
§ | The funding, financing, capital structure and capital reporting of the Group, the Group Capital Plan, the Group Funding Plan, and treasury policies and procedures, including significant financial exposures; |
§ | Applications of information and communication technology, including risks relating to cybersecurity and information security; |
§ | The integrity of the consolidated quarterly, half-yearly, and full-year financial statements and financial reporting processes; |
Internal control systems and the effectiveness of the internal audit process; |
§ | Relationship with the External Auditor, including in particular its appointment, reappointment, or dismissal, qualifications, independence, remuneration, and any services for the Group; and |
The performance of the external auditors and the effectiveness of the external audit process, including monitoring the independence and objectivity of the external auditor. |
Other 2023 topics
In 2023, the Audit Committee reports toaddressed, among other things, the Supervisory Board on its activities, identifying any matters about which it considers action or improvements are needed, and making recommendationsfollowing topics:
§ | Financial information, dividend proposals, and financial publications; |
§ | IFRS 17 project updates including parallel runs and status reports; |
§ | The reports from the independent auditor; |
§ | Quarterly update reports from Internal Audit, and the Compliance and Legal functions, including annual plans; |
§ | The annual Speak Up overview; |
§ | The Systematic Integrity Risk Assessment; |
§ | The quarterly IFRS/Solvency control program updates; |
§ | Cash flow testing results; |
§ | The transition process of the newly appointed auditor; and |
§ | Compliance with regulations, including CSRD implementation. |
58 | Annual Report on Form 20-F 20212023
![]() | Report of the |
The Risk Committee | ||||||||
Board members | 2023 | 2022 | ||||||
Caroline Ramsay | Chairman | V | ||||||
Dona Young | V | Chairman | ||||||
Karen Fawcett | V | V | ||||||
Mark Ellman | V | V | ||||||
Ben Noteboom | - | V |
Role and internal controls
The Risk Committee
Risk |
Risk tolerance; |
§ | Risk governance structure; |
§ | Risk competencies; |
§ | Product development and pricing; |
Risk assessment; |
Risk responses and internal control effectiveness; |
Risk monitoring; and |
Risk reporting. |
Furthermore, the Risk Committee regularly reviews riskis responsible for reviewing, and advising the Board with respect to, the Risk exposures as they relate to capital, earnings, liquidity, operations, and
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The Risk Committee works closely with the Audit Committee. One combined meeting was held in December 2021.
Other 2023 topics
In 2023, the Risk Committee please seeaddressed, among other things the Risk Committee Charter on
§ | Business updates and the risks |
§ | Assumption and |
§ | Reinsurance; |
§ | The Group Risk Plan; |
§ | Interest rate developments; |
§ | Outsourcing playbooks; |
§ | Information security |
§ | The Aegon the Netherlands disentanglement process and |
§ | Macroeconomic risks, exposures, and mitigating actions; |
§ | Business environment scan and the |
The Nomination and Governance Committee | ||||||||
Board members | 2023 | 2022 | ||||||
William Connelly | Chairman | Chairman | ||||||
Mark Ellman | V | V | ||||||
Corien Wortmann-Kool | V | V | ||||||
Dona Young | V | V |
Role and actions in the context of the Risk Function and the plan to reduce interest rate risk in the US. The Risk Committee furthermore spent time on the identification and monitoring of non-financial risks, assumption and model changes, the actuarial function report,
The Nomination and Governance Committee
This includes:
Drawing up selection criteria and (re-)appointmentprocedures for nominations of Directors; |
§ | Preparing selection criteria and appointment procedures and proposal for the |
§ | Updating the Board |
§ | Assessing the functioning of individual Directors and drawing up a plan for the succession of Directors; |
Annual Report on Form 20-F 2023 | 59 |
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§ | Advising on and proposing to the Board candidates to be designated as Chairperson and Vice-Chairperson of the Board; |
§ | Supervising the policy of the Board on the selection criteria and appointment procedures for senior management; |
Periodically |
Overseeing the corporate governance structure of the Company and compliance with |
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§ | Overseeing the process of the annual self-evaluation of the Board and each of its committees. |
Other 2023 topics
In future searches for a new Supervisory Board member, the Committee continues to strive for a diversified composition, also beyond gender diversity.
§ | A significant amount of time was allocated to the choices and preparations for the new governance structure and set up of the related documentation; |
§ | Discussed potential new candidates for the Board composition; |
§ | Received and discussed several updates on Sustainability; and |
§ | Received updates on corporate governance. |
The Compensation and Human Resource Committee
| ||||||||
Board members | 2023 | 2022 | ||||||
Dona Young | Chairman | - | ||||||
Ben Noteboom | - | Chairman | ||||||
William Connelly | V | V | ||||||
Karen Fawcett | V | V | ||||||
Jack McGarry | V | V | ||||||
Thomas Wellauer | V | V |
Role and responsibilities
The main roleCompensation and responsibilities of theHuman Resource Committee CHRC; formerly known as Remuneration Committee are to advise the Supervisory Board and prepare decisions to be taken by the Supervisory Board. The Committee, is designated to safeguard the existence of sound remuneration policies and practices within the CompanyGroup by overseeing the development and execution of these policies and practices. In orderpractices in accordance with the applicable rules and regulations. The Compensation and Human Resource Committee (CHRC) assesses in particular the remuneration governance processes, procedures and methodologies adopted, to ensure that the remuneration policies and practices takeadequately address all types of risks properly into account, in addition to consideringas well as liquidity and capital levels, the Remunerationlevels. The Committee assesses in particular the remuneration governance processes, procedures and
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This includes:
Reviewing |
Overseeing the remuneration of |
Reviewing annually a proposal for the remuneration of the Heads of Control Functions; |
§ | Preparing recommendations regarding variable compensation both at the beginning and at the end of the performance year; and |
Preparing the information provided to shareholders on remuneration policies and practices, including the Remuneration Report. |
The Remuneration Committee alsoCHRC oversaw the further application, implementation, and approval of Aegon’s Group Global Remuneration Framework and the various policies and procedures related to it, including the Remuneration Policy for Material Risk Takers (Identified Staff). The aboveit. This included:
Setting the |
Setting the |
Preparing for the |
Reviewing and/or approving the ex-ante risk assessments and ex-post risk assessments, any exemption requests |
Reviewing the related Remuneration Report. |
In addition, a significant amount of time was spent on the Remuneration Committee discussed developments with respect to possibleset-up of a new regulations pertaining to remuneration.
60 | Annual Report on Form 20-F 2023
Report of the Board of Directors | ||||
Annual Accounts
This Integrated Annual Report includes the Annual Accounts for 2021,2023, which were prepared by the Executive Boardmanagement and discussed by both the Audit Committee and the Supervisory Board. The Annual Accounts are signedadopted by the membersBoard.
Acknowledgment
The Board of Directors emphasizes the strategic progress that has been made in 2023 and supports the ongoing transformation of the Executivecompany. The Board andacknowledges the Supervisory Board and will be placed on the agendaimpact of the 2022 Annual General Meetingchoices made on Aegon’s employees and Aegon’s stakeholders. Aegon employees continued to gain the trust of Shareholders for adoption.our customers by rendering high level services and products. The Supervisory Board recommends that shareholders adopt the annual accounts.
The Hague, the Netherlands, March 21, 2022
William L. Connelly,
Annual Report on Form 20-F 2023 | 61 |
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Remuneration Report
The 20212023 Remuneration Report from our RemunerationCompensation
and Human Resource Committee on behalf of the Supervisory Board
Introduction
This report has been prepared by the RemunerationCompensation and Human Resource Committee of the Supervisory Board of Directors, which was led by the Committee’s Chairman Mr. Ben J. NoteboomChairperson Ms. Dona Young and was approved by the Supervisory Board. Board of Directors (Board).
In the first chapter, the RemunerationCompensation and Human Resource Committee presents an overview of the business and remuneration highlights in 20212023 and a look ahead to 2022.2024. This is followed by chapter two, which contains a general introduction to remuneration at Aegon. The third chapter is the 2021 Supervisory Board2023 Non-Executive Director Remuneration Report, which contains a summary of the Supervisory BoardNon-Executive Director Remuneration Policy that was applicable in 20212023 and the Supervisory Boardtheir remuneration over thein recent years. In chapterChapter four, the 20212023 Executive BoardDirector Remuneration Report provides a summary of the Executive BoardDirector Remuneration Policy that was applicable in 2021,2023, the Executive BoardDirector remuneration over the recent years, and the 20222023 Executive BoardDirector performance indicators.
1. Business and remuneration highlights
This chapter presents an overview of the business and remuneration highlights in 20212023 and a look ahead to 2022.
2023 Business highlights
In 2021,2023, Aegon demonstrated solidcontinued to make steady progress againstwith its transformation. Commercial momentum was strong in our US strategic assets, UK Workplace platform activities and financial objectives. The measures that Aegon has takenthe International segment. In addition, we continued to improve its operational performancemake progress in reducing our exposure to Financial Assets. At the same time, our UK Retail and reduce its risk profile, together with support from favorable markets, resulted in freeasset management activities remained challenged by adverse macroeconomic conditions. Free cash flows of EUR 729 million for the full year 2021, well ahead of the previous guidance. The operating result for 2021 amounted to EUR 1,906715 million an increasein 2023. This was above the guidance provided of 11%around EUR 600 million, in part due to special remittances received from AIFMC, the Chinese asset management joint venture. In 2023, earnings on in-force from the units (so before holding and funding expenses) rose by 21% compared with last year as a consequence of2022 to EUR 1,487 million, driven by business growth expense savings,in US Strategic Assets, and favorable equity markets, despite a more adverse mortality result in the United States, which was driven by the COVID-19 pandemic. To date, Aegon has executed 844 out of approximately 1,200 performance improvement initiatives, split between 649 expense initiatives and 195 growth initiatives.management actions we have taken on US Financial Assets. The expense savings initiatives drove a EUR 244 million reduction in addressable expenses in 2021 compared with the base year 2019. Aegon’s growth initiatives are aimed at improving customer service, enhancing user experience, and developing new products. These growth initiatives contributed EUR 115 million to the operating result in 2021. The increase of the market consistent value of new business fromincreased to EUR 262688 million compared with EUR 526 million in 2020 to EUR 538 million in 20212022. This increase was mainly driven by improved results for US Life, benefiting from higher sales and successful repricing of indexed universal life. Retirement plans in the Unites States due to increasingUS also contributed favorably, driven by higher written sales and growing assets in Life and the decision to stop selling variable annuities with significant interest rate sensitive riders.
Business performance highlights | 2021 | 2020 | ||
Free cash flows (in EUR million) | 729 | 530 | ||
Operating result (in EUR million) | 1,906 | 1,710 | ||
Addressable expenses (in EUR million) | 2,903 | 2,986 | ||
Market consistent value of new business (in EUR million) | 538 | 262 |
Business performance highlights | 2023 | 2022 | ||||||
Free cash flows (in EUR million) | 715 | 780 | ||||||
Earnings on In-Force (in EUR million)1) | 1,487 | 1,229 | ||||||
Market consistent value of new business (in EUR million) | 688 | 526 |
1 | Excludes Holding Company and Funding expenses. |
In 2023, Aegon’s Board of Directors consisted of the following Non-Executive members: Mr. William Connelly (Chairman), Ms. Corien Wortmann-Kool (Vice Chairman), Ms. Dona Young, Mr. Mark Ellman, Mr. Thomas Wellauer, Ms. Caroline Ramsay, Mr. Jack McGarry and Ms. Karen Fawcett. Mr. Ben Noteboom stepped down in May 2023. During the Annual General Meeting of Shareholders on June 6, 2024, the Board will propose to appoint Mr. Albert Benchimol to the Board for a term of four years as of June 6, 2024. Mr. Lard Friese, Chief Executive Officer, joined the Board as an Executive Director on September 30, 2023.
2023 Remuneration highlights
At the Annual General Meeting of Shareholders on June 3, 2021,May 25, 2023, shareholders were asked to cast an advisory vote on the 2022 Remuneration Report for the second time.Report. The 20202022 Remuneration Report was approved with 97.99%97.0% of the votes cast, which was a significant increase comparedcomparable to 2019 (83.79%2021 (97.5%).
Following feedbackAegon’s redomiciliation from several large shareholders regarding the 2019 report, the 2020 report included more information inNetherlands to Bermuda, the remuneration highlight sectionrules from Dutch law and more information was disclosed onSolvency II no longer applied as of September 30, 2023. Aegon’s Global Remuneration Framework (GRF), the calculation of variable compensation for theNon-Executive Director Remuneration Policy, and Executive BoardDirector Remuneration Policy were designed in chapter four. Aegon continuedaccordance with shareholder engagement regarding the remuneration report and made a few updates to this report to make it more concise and easier to read.
For serving as an Executive Board memberDirector as CEO in 2021,2023, Mr. Friese received EUR 1,485,0001,637,213 in fixed compensation (2020:(2022: EUR 931,071 for 7.5 months) and Mr. Rider received EUR 968,394 (2020: EUR 940,950)1,559,250). For Mr. Rider thisThis included a 5% increase per June 2021. Mr. Friese’s fixed compensation level was not changed during 2021.January 2023. For that same period, Mr. Friese was allocated EUR 3.53.9 million in total compensation (2020:(2022: EUR 2.0 million for 7.5 months) and Mr. Rider EUR 2.3 million (2020: EUR 2.03.6 million).
62 | Annual Report on Form 20-F 20212023
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The 20212023 CEO pay ratio was 28.0 (2020: 32.2, 2019: 32.8)25.4 (2022: 23.5, 2021: 28.0). This ratio was based on the EU-IFRS remuneration expenses for Mr. Friese and for Aegon’s employees in 2021,2023, which have been audited. The annual expenses for Mr. Friese’s total compensation were EUR 2.93.5 million (2020:(2022: EUR 3.53.1 million). The average expenses for the employees’ total compensation were EUR 105137 thousand (2020:(2022: EUR 110134 thousand), which were calculated by:
The total |
Divided by the number of employees in scope, which are the total number of employees minus employees in joint ventures and associates (as their expenses are not included in |
The RemunerationCompensation and Human Resource Committee took notenoted that certainvarious factors have influenced the CEO pay ratio. Last year, Mr. Friese’s annualized annual2023 remuneration expenses were higherchanged mainly due to an increase in his fixed compensation and because these included EUR 0.9 millionthe deferred expenses for his sign-on arrangement, whilevariable compensation have been building up more since his appointment in 2020. The average employee expenses mainly increased due to the impact of exchange rate movements, wage inflation, and the change in population (Aegon Netherlands employees moving to a.s.r.). As these expenses were EUR 0.1 million in 2021. As a result of our company-wide transformation program, we have seen a combination of reductions, shifts and increases in our workforce. Because the CEO pay ratio is influenced by a constantly changing international employee population, with the majority of employees based outside the Netherlands,factors can vary from year to year, the Committee does not have a preferred ratio. Instead, all compensation within Aegon (including for the Executive Board members)Director(s)) should be in line with the relevant internal and external references for the relative weight of the position, its responsibilities, and characteristics as well as the employee’s qualifications, experience, and performance.
Looking ahead to 2022
At the 2024 Annual General Meeting, the Board will ask Aegon’s shareholders to adopt a Director’s Remuneration Policy which covers the remuneration of Non-Executive and Executive Directors. In accordance with Aegon’s bye-laws,the Board must ask Aegon’s shareholders to adopt a Director’s Remuneration Policy at least every four years. Currently, Aegon has separate Remuneration Policies in place for the Non-Executive and Executive Directors (previously Supervisory Board remuneration policy, the fees for the Supervisoryand Executive Board members have been indexed with 5% per January 2022, in response torespectively) which were adopted by Aegon’s shareholders at the economic developments in the last three years (2019-2021). The last change to these fees was in January 2019.
2. Remuneration at Aegon in general
This chapter contains a general introduction to Aegon’s Global Remuneration Framework, Human Resources Strategy, Remuneration Principles, the concepts of total compensation and variable compensation, Risk Management in relation to remuneration, and remuneration of Material Risk Takers.
Global Remuneration Framework
Aegon’s Global Remuneration Framework (GRF) outlines the Aegon Group Human Resources Strategy, the Aegon Group Remuneration Principles and the Aegon Group Remuneration Guidelines, which apply to all Aegon employees, including the Executive Board members. The GRF has beenwas designed in accordance with relevant rules guidelines, and interpretations, such asregulations. . These included the remuneration rules from Dutch Financial Supervision Act, the Dutch Civil Code, the Dutch Corporate Governance Codelaw and the Solvency II, Legal Framework.
Human Resources Strategy
In order to support the Aegon Strategy and local business objectives, the Aegon Group Human Resources Strategy contains the following remuneration-related goals:
Attract, retain, motivate, and reward a highly qualified, and diverse |
Align the interests of executives, managers, and all other employees with the business strategy and risk tolerance, the values, and the long-term interests of |
Provide a well-balanced and performance-related compensation package to all employees, taking into account shareholder and other stakeholder interests, relevant regulations, the corporate responsibilities, and Aegon’s purpose, values, and behaviors. |
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Remuneration Principles
Based on the Human Resources Strategy, Aegon has formulated the following Remuneration Principles, which are the foundation for all remuneration policies and practices within the Group. Aegon’s remuneration is:
First, Aegon’s remuneration is employee-oriented by fostering a sense of value and appreciation in each individual |
Second, it is performance-related by establishing a clear link between pay and performance by aligning objectives and target setting with performance evaluation and remuneration, reflecting individual as well as collective performance in line with Aegon’s long-term |
Third, it is fairness-driven by promoting fairness and consistency in Aegon’s remuneration policies and practices, avoiding discrimination, having gender-neutral policies and practices paying equal for equal work, and by providing total compensation packages in line with an appropriately established peer group at a country and/or functional |
And last, Aegon’s remuneration is risk-prudent (see also Risk Management in relation to Remuneration below). |
Annual Report on Form 20-F 2023 | 63 |
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Risk Management in relation to Remuneration
Remuneration, and specifically variable compensation, may have an impact on risk-taking behaviors of employees and, as such, may undermine effective risk management. The GRF therefore includes additional remuneration rules for the Executive Board members,Director, Material Risk Takers, and Control Staff in Key Functions, as their roles and responsibilities require tailored risk mitigating measures and governance processes. These rules include minimum requirements on deferred pay-out of variable compensation in non-cash instruments, mandatory ex-ante and ex-post risk assessments related to setting individual goals, allocation of variable compensation and relatedpay-out of deferred variable compensation, and malus and claw-back provisions.
Both the Risk Management and Compliance functions are involved in the design and execution of Aegon’s GRF and remuneration policies, such as reviewing proposed updates to the GRF and remuneration policies, reviewing the selection of Material Risk Takers, and executing various risk mitigating measures during the compensation cycle (when the targets are set, before a variable compensation award is allocated, and before and after deferred variable compensation is paid).
Variable compensation
Variable compensation, if any, is capped at an appropriate level as a percentage of fixed compensation. For senior management, variable compensation is usually paid outThese caps were set in upfront cash and deferred Aegon shares and is subject to malus and claw-back provisions. In accordance with the Dutch Financial Supervision Act and remained in place for the remainder of 2023, when the Dutch Act no longer applied following Aegon’s redomiciliation to Bermuda. For instance, Aegon offered itsselected Corporate Center employees variable compensation up to 100% of fixed compensation in 2021 and continued to comply with the related requirement that least 75% of its employees within the entire Group were employed outside the Netherlands.2023. And Aegon alsohad obtained shareholder approval at the Annual General Meeting of Shareholders of May 20, 2016, to offer variable compensation up to 200% of fixed compensation to selected senior employees outside Europe in positions that, based on local market practice, could receivethe European Economic Area. For senior management, variable compensation that exceeds 100% of fixed compensation.is usually paid out in upfront cash and deferred Aegon shares and is subject to malus and claw-back provisions. Aegon’s capital was not adversely impacted by the maximum variable compensation that could bewas paid out.
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3. 2021 Supervisory Board2023 Non-Executive Director Remuneration Report
The 2021 Supervisory Board2023 Non-Executive Director Remuneration Report has been prepared by the RemunerationCompensation and Human Resource Committee of the Supervisory Board of Directors in accordance with the Dutch Civil Code (article art 2:135b)relevant rules and the Dutch Corporate Governance Code.regulations. The RemunerationCompensation and Human Resource Committee was led by the Committee’s Chairman Ben J. Noteboom.Chairperson Dona Young. This report was approved by the Supervisory Board.
This report contains a summary of the Supervisory BoardNon-Executive Director Remuneration Policy which applied to 20212023 and the Supervisory BoardNon-Executive Directors remuneration over the
recent years.
Non-Executive Director Remuneration Policy is aimed at ensuringin 2023
Aegon’s Non-Executive Director Remuneration Policy aims to ensure fair compensation and protectingprotect the independence of the Supervisory Board members.Non-Executive Directors. The Supervisory BoardNon-Executive Director Remuneration Policy that has been applied in 20212023 was adopted at the Annual General Meeting of Shareholders on May 15, 2020. ThisSince the adoption, this policy will behas been subject to annual reviews by the Supervisory Board.Board and no changes have been adopted during this period. The policy remains in place until a new or revised policy has been adopted by the shareholders in accordance with the applicable rules and regulatory requirements from the Dutch Civil Code.Insurance Code of Conduct of the Bermuda Monetary Authority. The Supervisory Board of Directors will submit a proposal to the shareholders to adopt a policy at an Annual Meeting of Shareholders at least every four years.
The policy contributes to Aegon’s strategy, long-term interests, and sustainability through the remuneration of the Supervisory Board membersNon-Executive Directors in various ways:
The policy provides the |
The |
64 | Annual Report on Form 20-F 2023
Remuneration Report | ||||
§ Aegon’s purpose and values at the time, were taken into account by the Board when the last changes to the policy were proposed in § The policy The Board has not taken the |
The Non-Executive Directors are entitled to |
table below): §A base fee for membership of the |
meetings. §An attendance fee for each extra Board meeting attended, be it in person or by video and/or telephone |
conference. §A committee fee for members on each of the |
Committees. §An attendance fee for each Committee meeting attended, be it in person or through video and/or telephone |
conference. §An additional fee for attending meetings that require intercontinental, continental, or US interstate travel between the |
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Base fee for | ||||||||
EUR /year | ||||||||
Chairman | 84,000 | |||||||
Vice-Chairman | 52,500 | |||||||
Member | 42,000 | |||||||
Fee for | EUR | |||||||
Chairman of the Audit or Risk Committee | 13,650 | |||||||
Member of the Audit or Risk Committee | 8,400 | |||||||
Chairman of other committees | 10,500 | |||||||
Member of other committees | ||||||||
5,250 | ||||||||
EUR | ||||||||
Committee meeting | 3,150 | |||||||
Extra Board meeting | 3,150 | |||||||
Travel fees | EUR | |||||||
Intercontinental | 4,200 | |||||||
Continental or US interstate |
2,100 |
Each of these fees is a fixed amount. Each quarter Aegon pays the fees that the Non-Executive Directors earned during that period. Where required, Aegon pays the employer social security contributions in the home country of the Non-Executive Director. The employee social security contributions in the home country, if any, are paid by the Non-Executive Director. The Non-Executive Directors do not receive any performance or equity-related compensation, and do not accrue pension rights with Aegon. | The Board regularly assesses the competitiveness of the Board’s remuneration structure and levels against peer companies with data provided by Willis Towers Watson. Fo this purpose, the Board selected a primary set of peer group companies according to the following criteria: §Industry: Insurance, with a preference for |
life insurance. §Size: Average |
total assets. §Geographic scope: Preferably companies that operate |
globally. §Location: Headquarters based in Europe, excluding |
Annual Report on Form 20-F 2023 | 65 |
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Based on these criteria, the current peer group consists of the following 16 European Insuranceinsurance companies: Ageas, Assicurazioni Generali, CNP Assurances, Hannover Rueck,
In addition, the Supervisory Board selects a secondary peer group according to the following criteria, in order to monitor alignment with the General Industry in the Netherlands:
Industry: General |
Size: Average |
Location: Headquarters based in the |
Based on these criteria, the current secondary peer group consists of the following 12 AEX companies:companies that have a listing on Euronext Amsterdam: Akzo Nobel, Ahold Delhaize, ASML, DSM, ING Group, Heineken, KPN, NN Group, Philips, Randstad, Signify, and Wolters Kluwer. This peer group is also reviewed each year and was last updated in 2022 (replacing ABN AMRO by Signify). This peer group is identical to the Dutch peer group for the Executive Board.Director.
The RemunerationCompensation and Human Resource Committee may recommend changes to the fee levels or structure of the Supervisory Board members,Non-Executive Directors, based on the results of a competitiveness review and economic developments in the Netherlands.developments. Such recommendations would be discussed by the Supervisory Board, which can support, revise, or reject them. The Supervisory Board is allowed to annually index the fees for economic developments in the Netherlands. For any other change to the level or structure of the fees,
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The policy contains a temporary derogation clause, with rules which are in accordance with the Dutch Civil Code.Code which applied when the remuneration policy was last amended. This means derogation is only allowed in exceptional circumstances to serve the long-term interest and sustainability of Aegon or to assure its viability, for a limited period of time, when it stays in line with the general spirit of the policy and when the details are disclosed in the next remuneration report.Remuneration Report. This clause was not used in 2021.
Information on members of the Supervisory BoardNon-Executive Directors and the composition of its four committees can be found in the report of the Supervisory Board in this 2021Integrated Annual Report.Report 2023.
66 | Annual Report on Form 20-F 2023
Remuneration Report | ||||
Non-Executive Director remuneration in recent years The table below shows the fees and benefits that have been allocated to and paid for each Non-Executive Director and former Supervisory Board members in the calendar years 2021, 2022, and 2023, in accordance with the Non-Executive | Director Remuneration Policy that applied at the time. There were no deviations from this policy in these years. The table also includes the total IFRS expenses that were recognized
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68 | Annual Report on Form 20-F 2023
Executive 2023 The ![]()
The Compensation and The policy contains a temporary derogation clause, with rules which are in accordance with the Dutch Civil of the policy and when the details are disclosed in the next 2023. Total compensation Total compensation for the Executive
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The European Insurance peer group was selected by the following criteria:
Based on these criteria, the current peer group consists of the following 16 European
responsibilities compared to their continental European counterparts. The Dutch peer group was selected by the following criteria:
Based on these criteria, this peer group consists of the following 12 The The of this annual total compensation review and on discussions with the Executive The Fixed compensation The fixed compensation for the Executive The Variable compensation The Executive The variable compensation award is based on performance against a set of performance indicators, weights, and target levels that have been set by the
The ![]()
Management team
The After the completion of the performance period, the 70 | Annual Report on Form 20-F 2023
recommendation is based on the actual performance results compared to target levels and takes a second ex-ante risk assessment by the Risk Management team into account. This risk assessment looks into whether there are reasons for a downward adjustment of the intended variable compensation award (malus) which were not take into account yet, such as:
In this assessment Director. The a fair reflection of the overall performance of the Executive The allocated variable compensation award is subsequently split between 33.33% upfront cash Claw-back provision In November 2023, the Board adopted a compensation recovery policy as required by Rule 10D-1 under the Securities Exchange Act of 1934, as amended, and the corresponding listing standards of the New York Stock Exchange, which provides for the mandatory recovery from current and former executive officers of incentive-based compensation that was erroneously awarded during the three fiscal years preceding the date that the company is required to prepare an accounting restatement, including to correct an error that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period. The amount required to be recovered is the excess of the amount of incentive-based compensation received over the amount that otherwise would have been received had it been determined based on the restated financial measure. Aegon’s Pension arrangements The Executive
The Executive ![]()
Other benefits Other benefits include non-monetary benefits Aegon does not grant the Executive Terms of Engagement The Executive
a period of four years. The Executive The imputable acts, or omissions by the Executive or failure of Aegon as a company during the appointment term of the Executive Executive This section Allocated remuneration (2021-2023) The first table shows the remuneration that has been allocated to the Executive Director and former Executive Board members, for the performance years
![]() 72 | Annual Report on Form 20-F
Calculation of Subject to the adoption of the annual accounts and Mr. Rider EUR
The is subsequently converted in a result on the 50-80-100% scale that applies to the variable compensation of the Executive
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74 | Annual Report on Form 20-F 2023
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Pay-out schedule variable compensation (2020-2027) The following tables show for
![]()
The Executive been allocated as compensation will be included in the count, with the unvested share allocations valued at what they would be worth after tax. For the vested share allocations, this tax has already been deducted and paid. After the allocation of the 2024. ![]()
76 | Annual Report on Form 20-F
Recognized IFRS expenses of remuneration (2021-2023) The following table contains the recognized IFRS expenses of the remuneration of the Executive Director and former Executive Board members in the calendar years the above-mentioned allocated remuneration amounts, as the deferred parts of variable compensation and Mr. Friese’s sign-on arrangement are expensed over multiple calendar years, and the shares are included at their fair value instead of the grant price.
Awarded and due remuneration (2022-2023) In line with the European guidelines on the standardized presentation of the remuneration report, Executive Director and former Executive Board members in the calendar years These amounts were awarded and due in accordance with the
![]()
|
Annualized total compensation overview (2017-2021)
The table below shows the total compensation that was awarded and due in the last five calendar years on an annualized basis and the year-on-year annual change in total compensation. Please note that therefore several amounts have been annualized, while in practice these were pro-ratedare on annual basis, and not reflecting actual amounts for the period during which the individual served as Executive Director or Executive Board member. These
These amounts were awarded and due in accordance with the Executive Board remuneration policyDirector Remuneration Policy that applied at the time and there were no deviations. Additionally, the table shows the Aegon net result, a proxy of the financial and non-financial business performance, the vesting price of the Aegon shares, the inflation in the Netherlands and the average employee compensation over the same period.
In EUR thousand | Annualized | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||
Lard Friese | Awarded and due | - | - | - | 2,719 | 2,748 | ||||||||||||||||||||
Change | - | - | - | - | 1% | |||||||||||||||||||||
Matt Rider (as of May 19, 2017) | Awarded and due | 1,357 | 1,670 | 1,799 | 1,824 | 2,052 | ||||||||||||||||||||
Change | - | 23% | 8% | 1% | 12% | |||||||||||||||||||||
Alex Wynaendts | Awarded and due | 4,431 | 4,969 | 3,806 | 3,268 | - | ||||||||||||||||||||
Change | - | 12% | (23%) | (14%) | - | |||||||||||||||||||||
Aegon net result (EU-IFRS) | In EUR million | 2,358 | 741 | 1,525 | 55 | 1,701 | ||||||||||||||||||||
Aegon business performance 1) | Target = 100% | 121% | 106% | 79% | 57% | 123% | ||||||||||||||||||||
Vesting price Aegon shares | In EUR | 4.423 | 5.848 | 4.287 | 2.079 | 3.934 | ||||||||||||||||||||
Inflation in the Netherlands | Consumer Price Index | 1.4% | 1.7% | 2.6% | 1.3% | 2.7% | ||||||||||||||||||||
Average employee compensation 2) | Total compensation | 102 | 104 | 115 | 110 | 105 | ||||||||||||||||||||
Annual change | 2% | 11% | (4%) | (5%) |
In EUR thousand | Annualized | 2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||||||||||||||||||
Lard Friese | Awarded and due | - | 2,719 | 2,748 | 2,910 | 2,951 | ||||||||||||||||||||||||||||||||
Change | - | - | 1% | 6% | 1% | |||||||||||||||||||||||||||||||||
Matt Rider | Awarded and due | 1,799 | 1,824 | 2,052 | 2,053 | 2,001 | ||||||||||||||||||||||||||||||||
Change | 8% | 1% | 12% | 0% | (3% | ) | ||||||||||||||||||||||||||||||||
Alex Wynaendts | Awarded and due | 3,806 | 3,268 | - | - | - | ||||||||||||||||||||||||||||||||
Change | (23% | ) | (14% | ) | - | - | - | |||||||||||||||||||||||||||||||
Aegon net result (EU-IFRS)1) | In EUR million | 1,525 | 55 | 1,701 | (2,504 | ) | (199 | ) | ||||||||||||||||||||||||||||||
Aegon business performance2) | Target = 100% | 79% | 57% | 123% | 113% | 130% | ||||||||||||||||||||||||||||||||
Vesting price Aegon shares | In EUR | 4.287 | 2.079 | 3.934 | 4.973 | 4.274 | ||||||||||||||||||||||||||||||||
Inflation in the Netherlands | Consumer Price Index | 2.6% | 1.3% | 2.7% | 10.0% | 3.8% | ||||||||||||||||||||||||||||||||
Average employee compensation3) | In EUR thousand | 115 | 110 | 105 | 134 | 137 | ||||||||||||||||||||||||||||||||
Annual change | 11% | (4% | ) | (5% | ) | 28% | 2% |
1 | Up to 2022, Aegon net income is reported under IFRS 4, as of 2023 this is under IFRS 17. |
2 | The weighted average Aegon financial and non-financial business performance, expressed as a percentage on a performance scale with 50% as threshold, 100% as target and 150% as maximum, as used for the allocation of variable compensation in the applicable year. |
Consistent with the CEO pay ratio calculation, the average employee compensation is based on the audited total EU-IFRS remuneration expenses for all employees divided by the number of employees in scope for these expenses. |
2024 Executive BoardDirector performance indicators
Upon the 2022 performance years,2024 Annual General Meeting, the 2022 performance indicators2024 variable compensation metrics for Mr. Friese and Mr. Riderthe Executive Director will be based again on a mix of 70% Group performance and 30% personal
2022 performance indicator weights | For Aegon bonus pools | Lard Friese | Matt Rider | |||||||||
Group performance | ||||||||||||
Free cash flows | 20% | |||||||||||
Relative total shareholder return | 10% | |||||||||||
Operating result | 10% | |||||||||||
Addressable expenses savings | 10% | |||||||||||
Market consistent value of new business | 10% | |||||||||||
Transformation program: Earnings contribution | 10% | |||||||||||
Transformation program: Timely initiative execution | 10% | |||||||||||
Transformation program: Timely milestone completion | 10% | |||||||||||
Employee engagement | 10% | 70% | 70% | |||||||||
Personal performance | ||||||||||||
Strategic Roadmap development | 10% | 5% | ||||||||||
Execution of capital initiatives in line with Strategic Roadmap | 10% | 5% | ||||||||||
Sustainabiity integration and execution | 5% | 5% | ||||||||||
Women in senior management | 5% | |||||||||||
Finance strategy execution | 10% | |||||||||||
Total weight | 100% | 100% | 100% |
78 | Annual Report on Form 20-F 20212023
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Risk management | ||||
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Risk management
As an insurance group, Aegon manages risk for the benefit of its customers and other stakeholders. The Companycompany is exposed to a range of financial, underwriting operational and financialoperational risks. Aegon’s risk management and internal control systems are designed to ensure that these risks are managed effectively and efficiently in a way that is aligned with the Company’scompany’s strategy.
For Aegon, risk management involves:
Understanding risks that the |
Maintaining a group-wide framework through which the risk-return trade-off associated with these risks can be |
Maintaining risk tolerances and supporting policies to limit exposure to a particular risk or combination of |
Monitoring risk exposures and actively maintaining oversight of the |
This section provides a description of Aegon’s risk management framework.
Enterprise Risk Management (ERM) framework
Aegon’s ERM framework is designed and applied to identify risks that may affect Aegon and manage individual and aggregate risks within Aegon’s set risk tolerances. The ERM framework covers the ERM components as identified by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The ERM framework applies to all of Aegon’s businesses for which it has operational control.
Risk strategy, risk appetite statement and risk tolerances
The settingformulation of the risk strategy starts with the principle that taking a risk should be based on serving a customer’s need. The competence to manage the risk is assessed and Aegon’s risk preferences are formulated, taking into accountconsidering Aegon’s risk capacity. The process results in a targeted risk profile, reflecting the risks Aegon wants to keep on the balance sheet,assume, and the risks Aegon would like to avoid.
Aegon’s risk appetite statement and risk tolerances are established to assist management in carrying out
Aegon’s strategy within the boundaries of the resources available to Aegon. Aegon’s risk appetite statement is to:
“FulfilFulfill our promises towards our customers and other stakeholders by delivering sustainable and growing long-term free cash flow through strong resilience in solvency and liquidity, with a healthy balance in exposures, and by running a responsible business with effective controls.”
Following from the risk appetite statement, risk tolerances are defined on:
Solvency, including Cash Capital at Holding and capital generation, to ensure that Aegon remains solvent even under adverse |
Liquidity, to ensure that Aegon |
Risk balance, to ensure a healthy balance of risk |
Responsible business with effective controls, which acknowledges an acceptable level of operational risk and stresses a low tolerance for (lack of) actions |
The tolerances are further developed into measures, thresholds and indicators that have to be complied with to remain within the tolerances.
Risk universe
Aegon’s risk universe is structured to reflect the type of risks to which the Companycompany is exposed. The identified risk categories are financial risk (e.g.(for example, interest rate risk and credit risk), underwriting risk (e.g. longevity(for example, mortality and morbidity risk and policyholder behavior), and operational risk (e.g.(for example, fraud, business disruption, processing, and non-financial risks, including sustainability risks like climate change)privacy risks). Specific risk types are identified within these risk categories. These risks, internal or external, may affect the Company’scompany’s operations, earnings, share price, value of its investments, or the sale of certain products and services. In the context of Aegon’s risk strategy, a risk appetite is set for the three identified risk categories (see table below).
Risk category | Description | Appetite | ||||||
Underwriting | The risk of incurring losses when actual experience deviates from Aegon’s best estimate assumptions on mortality, longevity, morbidity, policyholder behavior, P&C claims and expenses used to price products and establish technical provisions. | Medium to high - Underwriting risk is Aegon’s core business and meets customer needs. | ||||||
Financial | The risk of incurring financial losses due to movements in financial markets and the market value of balance sheet items. Elements of financial risk are credit risk, inflation risk, investment risk, interest rate risk and currency risk. | Low to medium - Accepted where it meets customer needs and the risk return profile is acceptable. | ||||||
Operational | The risk of losses resulting from inadequate or failed internal processes and controls, people and systems or from external events, such as processing errors, legal and compliance issues, natural or man-made disasters, and cybercrime. | Low - Accepted as a necessary condition of conducting business, but mitigated as much as possible in an economically efficient manner. |
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Risk identification and risk assessment
Aegon has identified a risk universe that captures all known material risks to which the Companycompany is exposed. To assess all risks, Aegon maintains a documented, consistent methodology for measuring risks. The risk metrics are embedded in Aegon’s key reports and are used for decision making.
Risk response
Aegon distinguishes the following risk responses:
Risk |
Risk |
§ | Risk transfer: The risk is reduced by insuring the |
§ | Risk avoidance: Activities that are the source of the risk are terminated. |
Risk monitoring and reporting
Risks are monitored regularly and reported internally on at least a quarterly basis. The impact of key financial, underwriting, and operational risk drivers on earnings and capital is shown in the quarterly risk dashboards for the various risk types, both separately and on an aggregate basis.
Risk exposures are compared with the measures and indicators as defined by Aegon’s risk tolerance statements. Reporting also includes compliance and incident reporting. Finally, the main risks derived from Aegon’s strategy and day-to-day business are discussed, as well as forward lookingforward-looking points for attention. If necessary, mitigating actions are taken and documented.
Risk control
A system of effective controls is required to mitigate the risks identified. In Aegon’s ERM framework, risk control includes risk governance, risk policies, internal control framework, model validation, risk framework embedding, risk culture, and compliance.
Change risk management
The ERM framework including the operational risk universe is applicable to all change initiatives and special projects across Aegon. In 2023, Aegon combined the Dutch operations with a.s.r. and consequently redomiciled its legal seat to Bermuda. The risk function provided oversight over both projects and prepared independent risk opinions to the Board with further monitoring of open items.
Most significant risks
The most significant risks Aegon faces in terms of exposures and required capital are:
Financial markets risks (particularly related to credit, equity, and interest rates) |
Underwriting |
Operational risks (particularly related to reputation and continuity of operations) |
Description of risk types
Financial risk
Credit risk
Credit risk is the risk of economic loss resulting from the default by, or failure to meet contractual obligations of, issuers and counterparties. Aegon also considers credit risk to include spread risk, that is, a decline in the value of a bond, loan or mortgage due to the deterioration in the financial conditiona widening of counterparties, either through fair value losses on traded securities or through defaults on traded securities, loans, and mortgages.credit spreads. Having a well-diversified investment portfolio means that Aegon can accept credit spread risk to earn a liquidity premium on assets that match liabilities. The focus is on high-quality securities with low expected defaults because Aegon has a low appetite for default risk.
Equity market risk and other investment risks
Aegon runs the risk that the market value of its investments changes. Investment risk affects Aegon’s direct investments in the general account, indirect investments for the account of policyholders and agreements where Aegon relies on counterparties, such as reinsurance and derivative counterparties.
Aegon has a low preference for investments in equity securities via the general account. Equity investments generate an equity risk premium over the long run, but in combination with a high capital charge result in a relatively low return on capital. Aegon accepts equity exposure through fee-based business in the separate accounts and mutual funds. Aegon has experience and expertise in managing complex investment guarantees and leverages this capability by providing customers access to a range of investment strategies and guaranteed benefits.
Interest rate risk
Aegon is exposed to interest rates as both its assets and liabilities are sensitive to movements in long-long-term and short-term interest rates, as well as to changes in the volatility of interest rates. Aegon acceptsmay accept interest rate risk in order to meet customer needs. However, as no spread is earned on this interest rate risk, Aegon prefers to mitigate the risk to the extent possible.
80 | Annual Report on Form 20-F 2023
Risk management | ||||
Currency exchange rate risk
As an international company, Aegon conducts business in different currencies and is therefore exposed to movements in currency exchange rates. Foreign currency exposure exists primarily when policies are denominated in currencies other than the issuer’s functional currency. Currency risk in the investment portfolios backing insurance and investment liabilities is managed using asset liabilityasset-liability matching principles. Assets allocated to equity are held in local currencies to the extent shareholders’ equity is required to satisfy regulatory and self-imposed capital requirements. Currency exchange rate fluctuations therefore affect the level of shareholders’ equity as a result of converting local currencies into euroeuros (EUR), the Group’scompany’s reporting currency. The Companycompany holds its capital base in various currencies in amounts that correspond to the book value of individual business units.
Inflation risk
Aegon is exposed to inflation risk through inflation-linked benefits offered on some of the products sold by Aegon’s insurance entities such as pensions or long-term care products. In addition, Aegon is exposed to cost inflation through its expense base. Aegon prefers to mitigate the risk to the extent possible.
Liquidity risk
Aegon needs to maintain sufficient liquidity to meet short-term cash demands, not only under normal conditions, but also in the event of a crisis. To that end, Aegon has put a strong liquidity management strategyframework in place. The Companycompany considers extreme liquidity stress scenarios, including the possibility of prolonged ‘frozen’“frozen” capital markets, an immediate and permanent rise in interest rates, and policyholders withdrawing liabilities at the earliest conceivable date. In addition, the Company has liquidity stress planning in place. elevated policyholder withdrawals.
Please refer to note 4 ‘Financial Risk’ to“Financial Risk” of Aegon’s financial statements.
Underwriting risk
Underwriting risk relates to the products sold by Aegon’s insurance entities and is the risk of incurring losses when actual experience deviates from Aegon’s best estimate assumptions on mortality, morbidity, policyholder behavior,
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in applying accounting policies’policies” to Aegon’s consolidated financial statements for further information.
Operational risk
Like other companies, Aegon faces operational risk resulting from operational failures or external events, such as processing errors, inaccuracies in models used, negative behavior by personnel, non-compliance to laws and regulations, and natural or man-made disasters, including climate change. In addition, major programs or organizational transformations may also increase the potential for operational risks. Aegon’s systems and processes are designed to support complex products and transactions, and to help protect against such issues as system failures, business disruption, financial crime, and breaches of information security. Aegon monitors and analyses these risks, and retains flexibility to update and revise where necessary. Aegon’s operational risk universe distinguishes eightas risk types: business risk; legal, regulatory, conduct, and compliance risks; tax risk; financial crime risk; processing risk; information technology and business disruption risk;risks; people risk; and facility risk. These level 1 risk types are split out into more granular level 2 risk types. The more granular risk types include, amongstamong others, information security risk, conduct risk, fraud risk, Environmental, Social & Governance (ESG)modelling risk, and pandemicphysical damage risk.
Sustainability risk
Sustainability risk, including climate risk, is not considered a separate risk type but is a risk driver that impacts multiple risks. Sustainability is explicitly part of Aegon’s risk taxonomy, embedded in its ERM framework and incorporated in the relevant risk policies. Sustainability has financial, underwriting, business, legal, regulatory, conduct and compliance risk angles. For example, climate change can impact future investment returns. The impactlegal, regulatory, conduct and compliance risk angles relate to the ability to comply with relevant legal and regulatory requirements. The importance of COVID-19 on ourhandling sustainability risk management systemeffectively and expeditiously is highlighted below.
Fraud risk - COVID-19
Fraud Risk is interpreted broadly in Aegon and underwriting developments (mortality rates), and also leadsrelates both to operational risks. Fromtypes of fraud and financial reporting related fraud.
Operational types of fraud are divided between internal and external fraud, that is, fraud committed by employees and fraud committed by others, with external fraud further specified as intermediary fraud or fraud committed by third parties. To combat operational types of fraud, Aegon has put policies in place and reports internally on its adherence to these policies. To enable the onsetExecutive Committee and Board of the COVID-19 pandemic, targeted control assessments were conducted acrossDirectors to assess fraud risks, Compliance departments report quarterly on fraud events. In its annual
Annual Report on Form 20-F 2023 | 81 |
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Systematic Integrity Risk Analysis (SIRA), Aegon analyzes both its exposure to fraud, and its residual risks, taking into account all regionsmeasures Aegon has put in place to monitor the operational risk impactcombat fraud. Where gaps are found, additional measures are put in place.
Furthermore, Aegon has an established process in place to assess and confirm effective controls are in place concerning fraud in financial reporting. This assessment is performed annually and is based on a set of the pandemic. The assessments showed that the controls continued to operate effectively. The assessments covered the impact on core business processes, the working from home environment and the related information security risk, service levels to customers, and the health of employees.mandatory scenarios. In addition, ongoing attentionthe assessment is being directed at third party risk with the aimrequired to monitor financial health, security and capacity aspects as well as to provide support where needed, to avoid negative knock-on effects for Aegon.
Business environment scan
In addition to the managementmanaging these various types of described risk, types, Aegon performs a business environment scan. The aim is to identify emerging, fundamental/structural trends, risks, and opportunities in our operating environment, which could have significant impact on value creation and Aegon’s financial strength, competitive position, or reputation. It is a critical, cross functionalcross-functional exercise that looks beyond impact alone to assess the potential of topics tothat influence value protection and creation. The scan is performed as a check on the ongoing appropriateness of the risk universe, to ensure the completeness of Aegon’s risk assessment as well as to provide input for ongoing strategy development.
Topic identification, mapping, and selection are based on desk research, interviews with internal and external experts, and management selection. Topic areas can include, among others, geopolitics, macro- and financial economics, technology, regulations and supervision, customer preferences, product markets, market conduct and ESG. Outcomes can be used for materiality reporting, as input for Aegon’s strategy process and for possible follow-up in terms of further analysis, tracking, or as a global project.
Risk governance framework
Aegon’s risk management is based on clear, well-defined risk governance. The goals of risk governance are to:
Define roles and responsibilities, and risk reporting procedures for |
Institute a proper system of checks and |
Provide a consistent framework for managing risk in line with the targeted risk |
Facilitate risk |
Governance structure
Aegon’s risk management framework is represented across all levels of the organization. This ensures a coherent and integrated approach to risk management throughout the Company.company. Similarly, Aegon has a comprehensive range
of company-widegroup-wide risk policies that detail specific operating guidelines and limits. These policies include legal, regulatory, and internally set requirements, and are designed to keep overall risk-specific exposures to a manageable level. Any breach of policy limits or warning levels triggers remedial action or heightened monitoring. Further risk policies may be developed at a local level to cover situations specific to particular regions or business units.
Aegon’s risk management governance structure has four layers:
The |
The |
The Group Risk & Capital Committee (GRCC) and its |
The |
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The SBRCRisk Committee reports to the Supervisory Board on topics related to the ERM framework and the internal control system. This includes:
§ | Risk strategy, risk tolerance, and risk governance; |
§ | Product development and pricing; |
§ | Risk assessment; |
§ | Risk responses and internal control effectiveness; |
§ | Risk monitoring; and |
§ | Risk reporting. |
The formal responsibility regarding the effectiveness and design, operation, and appropriateness of the ERM and internal control system rests, however, with the Audit Committee of the Supervisory Board. The AuditRisk Committee works closely together with the SBRC with regard to the oversightBoard of and reports on, the effectiveness of the ERM framework and the risk control systems of the Company. TheDirectors Audit Committee relies on the findings of the SBRC. The SBRC oversees Aegon’s ERM framework, including risk governance and measures taken to ensure risk management is properly integrated into the Company’s broader strategy.
For a description of the main roles and responsibilities of the SBRCRisk Committee see the section on the Risk Committee on page 4559 of the Report of the Supervisory Board of Directors in this Annual Report.
It is the responsibility of the Executive BoardCEO and the Group’s Chief Risk Officer (CRO) to inform the Supervisory Board of any risk that directly threatens the solvency, liquidity, or operations of the Company.
The CEO has overall responsibility for risk management. The Executive BoardCEO adopts the risk strategy, risk governance, risk tolerance, and material changes in risk methodology and risk policies. The Group’s CRO has a standing invitation to attend Executive Board meetingsthe CEO meeting and has a direct reporting line to the Supervisory Board to discuss ERM and related matters, andmatters. The CRO is also a member of the Management Board.
The Management BoardExecutive Committee oversees a broad range of strategic and operational issues. While the Executive BoardCEO is Aegon’s statutory executive body,Executive Director, the Management BoardExecutive Committee provides vital support and expertise in safeguarding Aegon’s strategic goals. The Management BoardExecutive Committee discusses and sponsors ERM, in particular the risk strategy, risk governance, risk tolerance, and the introduction of new risk policies.
82 | Annual Report on Form 20-F 2023
Risk management | ||||
The CEO and Executive Board and Management BoardCommittee are supported by the Group Risk & Capital Committee (GRCC). The GRCC is Aegon’s most senior risk committee. It is responsible for managing Aegon’s balance sheet at the global level, and is in charge of risk oversight, risk monitoring, and risk management related-related decisions on behalf of the Executive BoardCEO and in line with its charter. The GRCC ensures risk-taking is within Aegon’s risk tolerances; that the capital position is adequate to support financial strength credit rating objectives and regulatory requirements, and that capital is properly allocated. The GRCC informs the Executive BoardCEO about any identified (near) breaches of overall tolerance levels whichthat threaten the risk balance, as well as any potential threats to the Company’scompany’s solvency, liquidity, or operations.
The GRCC has three sub-committees: the ERM framework, Accounting and Actuarial Committee (ERMAAC), the
The purpose of the ERMAAC is to assist the GRCC, CEO, and Executive Board and Management BoardCommittee with financial risk framework setting and maintenance across all group-level balance sheet bases, including policies, standards, guidelines, methodologies, and assumptions.
The purpose of the NFRC is to assist the GRCC, CEO and Executive Board and Management BoardCommittee with non-financial risk framework setting and maintenance, including policies, standards, guidelines, and methodologies, and to act as a formal discussion and exchange of informationinformation-exchange platform on matters of concern regarding non-financial risk management.
The MVC is responsible for approving all model validation reports across Aegon. This is an independent committee that reports intoto the GRCC and the Executive BoardCEO to provide information on model integrity and recommendations foron how to further strengthening ofstrengthen these models.
Aegon’s regionsbusiness units have a risk,Risk, or riskRisk and capitalCapital committee, and an audit committee established.Audit committee. The responsibilities and prerogatives of the committees are aligned with those of the Group-levelcompany-level committees and further set outelaborated in their respective charters, which are tailored to local circumstances.
In addition to the four layers described above, Aegon has an established company-wide riskgroup-wide Risk function. It is the mission of the Risk Management function to ensure the continuity of the Company throughcompany by safeguarding the value of existing business, protecting Aegon’s balance sheet and reputation, and through supporting the creation of sustainable value for all stakeholders.
In general, the objective of the Risk Management function is to support the CEO, Executive Committee, Board, Management Board, Supervisory Board, and regional and business unit boards in ensuring that the Companycompany reviews, assesses, understands, and manages its risk profile. Through oversight, the Risk Management
function ensures the company-wide risk profile is managed in line with Aegon’s risk tolerances, and stakeholder expectations are managed under both normal business conditions and adverse conditions caused by unforeseen negative events.
The following roles are important in order to realize the objective of the Risk Management function:
Advising on risk-related matters including risk tolerance, risk governance, risk methodology, and risk |
Supporting and facilitating the development, incorporation, maintenance, and embedding of the ERM framework and sound |
Monitoring and challenging the implementation and effectiveness of ERM |
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In the context of these roles, the Risk Management Functionfunction has the following responsibilities:
ERM Framework
The overarching ERM Framework supports Aegon’s corporate strategy and enables management to effectively deal with uncertainty and the |
Global Risk Appetite (GRA)
The GRA is linked to and supports Aegon’s strategy and purpose and translates these into risk tolerances and risk limits. |
Risk Identificationidentification and Assessment
All material risks are captured and classified in Aegon’s risk universe. An emerging risk process is in place to ensure that risk universe remains |
Risk assessment includes risk measurement across valuation and reporting metrics and feeds into Aegon’s risk strategy, including risk preferences and risk profile considerations.
A risk governance framework is in place across all levels of the company, including formal committees, committee charters, memberships across relevant functions, and escalation procedures. |
Policies and Standards
Risk policies and standards set out requirements, roles and responsibilities, and processes to manage risks across the risk universe. |
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Risk framework embedding
§ | The ERM Framework is embedded in Aegon’s key business areas. The Own Risk Self-Assessment (ORSA)1 unites the risk and capital management and the business planning processes across Aegon and aligns these to its strategy. The risk strategy is aligned with the business strategy, the strategy execution is closely monitored, and risks are |
Risk Oversight
Major business (and risk) decisions are risk-based; properly |
Risk Monitoringmonitoring and Reporting
Risks across the risk universe are monitored and reported. |
Risk culture
Risk culture is embedded across the company. |
Aegon’s Groupgroup-wide and business unit’sunit risk management staff structure is fully integrated. Business unit CROs have either a direct reporting line to the Group CRO or one of the regional CROs that reports directly to the Group CRO.
Keeping ERM framework up-to-dateup to date and effective
Aegon continuously works on keeping its ERM framework up-to-date, effective and fit-for-purpose. The annual risk development plan outlines priorities for the year and rationalizes activities that align with Aegon’s strategy and vision. Policies, charters and other governance documents are regularly reviewed and
Internal control system
Aegon has developed an internal control system that serves to facilitate its compliance with applicable laws, regulations (e.g.(for example Sarbanes-Oxley Act and Solvency II), and administrative processes, and the effectiveness and efficiency of operations with regard to its objectives, in addition to the availability and reliability of financial and non-financial information. The overall internal control system ensures appropriate control activities for key processes, and the documentation and reporting of administrative and accounting information. A key element of the internal control system is to facilitate action planning and embed continuous improvement regarding the internal control environment throughout the organization. The internal control system is embedded through policies and frameworks such as the ERM Framework, Model Validation Framework, Operational Risk Management (ORM) Framework, and Information Technology Framework. Aegon’s internal control system is considered more encompassing in scope than the Integrated Framework issued by COSO on which criteria for the internal control system are based.
In relation to the Information Technology Framework, as some of ourthe core processes and systems shift from legacy on-premises environment to the cloud, Aegon has established a strategy to manage cloud risk. This includes defining key elements of cloud governance, cloud security strategy, as well as integrating cloud control requirements into our IT Control Framework.
In 2021,2023, risk management and internal control topics were discussed by the relevant management committees and bodies, including the Management Board, the Executive Board, theCommittee, Risk Committee, of the Supervisory Board, and the Audit Committee of the Supervisory Board. FromCommittee. An analysis of internal and external audit reports and risk reviews revealed no material weaknesses were observed, andweaknesses. As a result, no significant changes or major improvements were made or planned to the risk management and internal control systems following from the review.
1 | Based on the redomicilation of Aegon to Bermuda, the ORSA will be replaced by the Group Solvency Self-Assessment (GSSA) in 2024. |
84 | Annual Report on Form 20-F 20212023
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Capital and liquidity management
Guiding principles
The management of capital and liquidity is of vital importance for Aegon, for its customers, investors in Aegon securities, and for Aegon’s other stakeholders. In line with its risk tolerance, the goal of Aegon’s capital and liquidity management is to promote strong and stable capital adequacy levels for its businesses, in addition to maintaining adequate liquidity to ensure that the Companycompany is able to meet its obligations.
Aegon follows a number of guiding principles in terms of capital and liquidity management:
Promoting strong capital adequacy in Aegon’s businesses and operating |
Managing and allocating capital efficiently in support of the strategy and in line with its risk |
Maintaining an efficient capital structure, with an emphasis on optimizing Aegon’s cost of |
Maintaining adequate liquidity in both the operating units and the Holding to ensure that the |
Maintaining continued access to international capital markets on competitive |
Aegon believes that the combination of these guiding principles strengthens the Company’scompany’s ability to withstand adverse market conditions, enhances its financial flexibility, and serves both the short-term and the long-term interests of the Company,company, its customers, and other stakeholders.
The management and monitoring of capital and liquidity is firmly embedded in Aegon’s Enterprise Risk Management (ERM) framework.
Management of capital
Aegon’s capital management framework is based on adequate capitalization of its operating units, Cash Capital at Holding, and leverage.
Capital adequacy of Aegon’s operating units
Aegon manages capital in its operating units at levels sufficient to absorb moderate shocks without impacting the remittances to the Group. These moderate shocks could be caused by various factors, including general economic conditions, financial markets risks, underwriting risks, changes in government regulations, and legal and arbitration proceedings. To mitigate the impact of such factors on the ability of operating units to pay remittances to the Group, Aegon established an operating level of capital in each of the units: 150% Solvency Capital Requirement (SCR) for Solvency II units and 400% Risk-Based Capital (RBC) Company Action Level (CAL) in the US.US and 150% Solvency Capital Requirement (SCR) in the UK; based on UK Solvency II. Aegon manages capital in the units to their respective operating levels over-the-cycle.
After investments have been made in new business to generate organic growth, capital generated by Aegon’s operating units is available for distribution to the holding company. In addition to an operating level, Aegon established a minimum dividend payment level of capital in each of the units: 135% SCR for Solvency II and 350% RBC CAL in the US.US and 135% SCR in the UK; based on UK Solvency II. As long as the capital position of the unit is above this minimum dividend payment level, the unit is expected to pay remittances to the Group.
When the operating unit’s capital position approaches the minimum dividend payment level, capital management tools will be used to ensure that units will remain well capitalized. The frequent monitoring of actual and forecasted capitalization levels of its operating units is an important element in Aegon’s capital framework in order to actively steer and manage towards maintainingmaintain adequate capitalization levels.
The regulatory capital requirement, minimum dividend payment level, operating level, and actual capitalization for Aegon’s main operating units at December 31, 2021,2023 are included in the following table:
Capital requirements | Regulatory capital requirement | Minimum dividend payment level | Operating level | Actual capitalization | ||||||||||||
US RBC ratio | 100% | 350% | 400% | 426% | ||||||||||||
NL Life Solvency II ratio | 100% | 135% | 150% | 186% | ||||||||||||
Scottish Equitable Plc (UK) Solvency II ratio | 100% | 135% | 150% | 167% |
Capital requirements | Regulatory capital requirement | Minimum dividend payment level | Operating level | Actual capitalization | ||||||||||||||||
US RBC CAL ratio | 100% | 350% | 400% | 432% | ||||||||||||||||
Scottish Equitable Plc (UK) Solvency II ratio | 100% | 135% | 150% | 187% |
For more details on the capital ratios and the movement thereof, reference is made tosee note 43 ‘Capital37 “Capital management and solvency’ tosolvency” in Aegon’s consolidated financial statements.
Improving risk-return profile
Aegon has an active global reinsurance program designed to optimize the risk-return profile of insurance risks. In addition, Aegon monitors the risk-return profile of new
business written, withdrawing products that do not create value for its stakeholders.
Aegon continues to take measures to improve its risk-return profile. In 2021,Particularly in the United States, several actions were taken to strengthen the capital position and reduce the volatility of the local capital positions.
Annual Report on Form 20-F 2023 | 85 |
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Management actions US
As announced during the June 2023 Capital Markets Day, Transamerica aims to improve the quantum and quality of its capital generation, while reducing its exposure to Financial Assets. During 2023, Transamerica has made good progress in implementing its plans.
Regarding Strategic Assets these include:
§ | Transamerica has agreed upon an earn-out arrangement with certain key founders of World Financial Group (WFG). This will improve the value creation by the growth of the distribution network; |
§ | Transamerica has insourced the administration to facilitate the anticipated growth. |
As part of its longevity exposure with Reinsurance Group of America, Incorporated (RGA). The reinsurance agreement provides protection against the longevity risk associated with EUR 7 billion of pension liabilities. This transaction improvesstrategy rolled out on the risk profile ofCMD, the Dutchlegacy Universal Life business and releases capital at attractive terms.
§ | Rate increase programs in Long-Term Care with a total value of approvals achieved since the beginning of 2023 amounts to USD 245 million, which is 35% of the USD 700 million target set at the 2023 CMD. |
§ | The US RBC ratio volatility from Variable Annuities was substantially reduced by actions taken in 2022. In the second half-year of 2023, the dynamic hedging program for the Variable Annuities guaranteed benefits was expanded to also hedge statutory lapse and mortality margins. This has reduced the sensitivity of the RBC ratio to equity markets further. |
§ | In July 2023, Transamerica reinsured USD 1.4 billion of Secondary Guarantee Universal Life (SGUL) statutory reserves to Wilton Re. The transaction reduced exposure to mortality risk and covered around 14,000, representing 12% of the total reserves backing this product line. |
§ | In 2022, Transamerica set-up a dedicated entity to repurchase institutionally owned universal life policies to reduce mortality risk of the overall portfolio. By 2027, Transamerica aims to have purchased 40% of the USD 7 billion face value of institutionally owned universal life policies that were in-force at the end of 2021. At the end of 2023, the company had purchased 23% of the face value of institutionally owned universal life policies, focusing on older age policies with large face amounts. Since inception in 2022, Transamerica has purchased policies for more than USD 800 million, and in the meantime used the proceeds from terminated policies to purchase further policies. |
§ | Reserves have been strengthened by reducing its captive financing through the recapture of certain policy blocks from two captives in the third quarter. |
§ | Transamerica reinsured a portfolio of Fixed Deferred Annuities with USD 4.6 billion of reserves from Transamerica Life Insurance Company (TLIC) to a new affiliated Bermuda-based reinsurance entity. This will allow the block to be managed under a more market consistent framework, and will reduce capital volatility. |
Cash Capital at Holding and liquidity management
Liquidity management is a fundamental building block of Aegon’s overall financial planning and capital allocation processes. Liquidity is managed both centrally and at the operating unit level and is coordinated centrally at Aegon N.V..
The ability of the holding company to meet its cash obligations depends on the amount of liquid assets on its balance sheet and on the ability of the operating units to pay remittances to the holding company. In order to ensure the holding company’s ability to fulfilfulfill its cash obligations, to maintain sufficient flexibility to provide capital and liquidity support to Aegon’s operating units, and to provide stability in external dividends, the Companycompany manages Cash Capital at Holding, including Aegon’s centrally managed (unregulated) holding companies, to an operating range of EUR 0.5 billion to EUR 1.5 billion.
The main sources of liquidity in Cash Capital at Holding are remittances from operating units and proceeds from divestitures. In addition, contingent internal and external liquidity programs are maintained to provide additional safeguards against extreme unexpected liquidity stresses.
Aegon uses the cash flows from its operating units to pay for holding expenses, including funding costs. The remaining free cash flow is available to execute the Company’scompany’s strategy, to strengthen the balance sheet through deleveraging toor make capital injections into units as required, to make acquisitions, to fund dividends on its shares, and to return capital to shareholders, if possible, all subject to maintaining targeted Cash Capital at Holding. Aegon aims to pay out a sustainable dividend to enable equity investors to share in its performance.
When determining whether to declare or propose a dividend, Aegon’s Executive Board of Directors balances prudence with offering an attractive return to shareholders. This is particularly important during adverse economic and/or financial market conditions. Furthermore, Aegon’s operating units are subject to local insurance regulations that could restrict remittances to be paid to the holding company. There is no requirement or assurance that Aegon will declare and pay any dividends.
On December 31, 2021,2023, Aegon held a balance of EUR 1.32.4 billion in Cash Capital at Holding, compared to EUR 1.11.6 billion on December 31, 2020.2022. Details on the movement are included in note 43 ‘Capital37 “Capital management and solvency’ tosolvency” in Aegon’s consolidated financial statements.
86 | Annual Report on Form 20-F 2023
Capital and liquidity management | ||||
Liquidity management
The Company’scompany’s liquidity risk policy sets guidelines for its operating companies and the holdingHolding in order to achieve a prudent liquidity profile and to meet cash demands under extreme conditions. Aegon’s liquidity is invested in accordance with the Company’scompany’s internal risk management policies. Aegon believes that its working capital,Cash Capital at Holding, backed by its external funding programs and facilities, is ample for the Company’scompany’s present requirements.
Aegon maintains a liquidity policy that requires all business units to project and assess their sources and uses of liquidity over a two-year period under normal and severe business and market scenarios. This policy ensures that liquidity is measured and managed consistently across the Company,company, and that liquidity stress management plans are in place.
Aegon’s operating units are engaged in life insurance and pensions business, which are long-term activities with relatively illiquid liabilities and generally matching assets. Liquidity consists of liquid assets held in investment portfolios, in addition to inflows generated by maturing assets, coupons and premium payments, and customer deposits.
Leverage
Aegon uses leverage in order to lower the cost of capital that supports businesses in the Aegon Group,company, thereby contributing to a more effective and efficient use of capital. In managing the use of leverage throughout the Group,company, Aegon has implemented a Leverage Use Framework as part of its broader Enterprise Risk ManagementERM framework.
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Financial leverage
Aegon defines gross financial leverage as debt or debt-like funding issued for general corporate purposes and for capitalizing Aegon’s business units. Gross financial leverage includes hybrid instruments, and subordinated and senior debt. In 2023, Aegon aimsachieved its goal to reduce its gross financial leverage to a range ofaround EUR 5.0 – 5.5 billion, by 2023. Thisas announced during the June 2023 Capital Markets Day. Gross financial leverage was EUR 5.1 billion per December 31, 2023, after a EUR 500 million reduction in gross financial leverage in December 2023 funded from the proceeds of leverage will strengthen the balance sheet, reduce Aegon’s risk profile and make Aegon more resilient.
The following are metrics that Aegon assesses in managing leverage:
Gross financial leverage |
Fixed charge |
Various rating agency leverage |
Other metrics, including gross financial leverage divided by operating capital |
Aegon’s gross financial leverage ratio is calculated by dividing gross financial leverage by total capitalization. Aegon’s total capitalization consists of the following components:
Shareholders’ equity |
Non-controlling interests and shares related to |
Contractual service margin, excluding joint-ventures and associates, net of tax |
§ | Gross (or total) financial |
Aegon’s fixed charge coverage is a measure of the Company’scompany’s ability to service its financial leverage. It is calculated as the sum of the operating result and interest expenses on financial leverage divided by interest payments on financial leverage. The fixed charge coverage includes the impact of interest rate hedging.
Operational leverage
Although operational leverage is not considered part of Aegon’s total capitalization, it is an important source of liquidity and funding. Operational leverage relates primarily
Funding and back-up facilities
The majority of Aegon’s financial leverage is issued by Aegon N.V.Ltd., the parent company. A limited number of other Aegon companies have also issued debt securities, but for the most part these securities are guaranteed by Aegon N.V.
To support its commercial paper programs andthe need for Letters of Credit (LOCs), and to enhance its liquidity position, Aegon maintains backup credit and LOC facilities with international lenders. The Company’scompany’s principal arrangements comprise a EUR 21.7 billion syndicated revolving credit facility and an LOC facility of USD 21.5 billion. The syndicated revolving credit facility matures in 2025. The LOC facility matures in 2026. In addition, Aegon also maintains variousa number of shorter-dated bilateral backup liquidity facilities in addition to committed and uncommitted LOC facilities.
Annual Report on Form 20-F 2023 | 87 |
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Rating agency ratings
Aegon’s objective is to maintain very strong financial strength ratings in its main operating units, and this plays an important role in determining the Company’scompany’s overall capital
management strategy. Aegon maintains strong financial strength ratings from several international rating agencies for its main operating units, and a strong credit rating for Aegon N.V.
December 31, 2023 | Aegon Ltd. | Aegon USA | Aegon UK | |||||||||||||||||||||||||
S&P Global 1) | ||||||||||||||||||||||||||||
Financial strength | A+ | A+ | ||||||||||||||||||||||||||
Long-term issuer | BBB+ | |||||||||||||||||||||||||||
Senior debt | BBB+ | |||||||||||||||||||||||||||
Subordinated debt | BBB- | |||||||||||||||||||||||||||
Moody’s Investors Service | ||||||||||||||||||||||||||||
Financial strength | A1 | |||||||||||||||||||||||||||
Long-term issuer | Baa1 | |||||||||||||||||||||||||||
Senior debt | Baa1 | |||||||||||||||||||||||||||
Subordinated debt | Baa2 | |||||||||||||||||||||||||||
A.M. Best | ||||||||||||||||||||||||||||
Financial strength | ||||||||||||||||||||||||||||
A | ||||||||||||||||||||||||||||
1 At December 31, 2023, the outlook on S&P’s ratings was negative. S&P changed the outlook from negative to stable in February 2024. | ||||||||||||||||||||||||||||
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Aegon Group Solvency Ratio
Following the transfer of Aegon’s legal domicile to Bermuda on September 30, 2023, group supervision moved from the Dutch Central Bank ( DNB) to the Bermuda Monetary Authority (BMA). Aegon’s group solvency ratio under the Bermuda solvency framework is broadly aligned with that under the previously applied Solvency II regulatory framework determinesduring a transition period until the regulatoryend of 2027. This includes the method to translate Transamerica’s capital requirements for EU-domiciled insurance and reinsurance entities. In Aegon’s Non-EEA (European Economic Area) regions, (re)insurance entities domiciled in third-countries deemed either provisionally or fully equivalent (US life insurance entities, Bermuda, and Brazil),position into the capital requirement is based on local capital requirements.group solvency position. For more information about Solvency IIgroup solvency and recent developments, please refer to section ‘Regulation“Regulation and supervision’supervision”.
Aegon’s Group solvency ratio was 193% on December 31, 2021,2023, compared to 208% on December 31, 2022. The decrease in Group solvency ratio is driven by the estimatedEUR 1,500 million share buyback related to the transaction with a.s.r. The Group solvency ratio includes Aegon UK based on the local UK Solvency II ratio of Aegon Group amounted to 211%, an increase of 15%-points since December 31, 2020. This was mainly due to the positive impact from operating capital generation, management actionsregulation, including the longevity reinsurance for Aegon Levensverzekering N.V. (NL Life) in December 2021 and model and assumption changes - including an increased LAC-DT factor for NL Life. There was a partial offset from other one-time items, a slight negative impact from markets, external dividends andrecent reform of the impact of deleveraging.risk margin calculation. For more details, please refer to note 43 ‘Capital37 “Capital management and solvency’solvency” to Aegon’s consolidated financial statements.
December 31, 2021 1) | December 31, 2020 | |||
Group Own Funds | 19,431 | 18,582 | ||
Group SCR | 9,226 | 9,473 | ||
Group Solvency II ratio | 211% | 196% |
December 31, 2023 1) | December 31, 2022 | |||||||||||
Group Eligible Own Funds | 14,250 | 16,332 | ||||||||||
Group SCR | 7,366 | 7,844 | ||||||||||
Group solvency ratio | 193% | 208% | ||||||||||
1 The solvency ratios are estimates and are not final until filed with the respective supervisory authority.
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Sensitivities
Aegon calculates the sensitivities of its Solvency IIcapital ratios as part of its capital management framework. The following table provides an overview of the sensitivities (downward and upward) to certain parameters and their estimated impact on the Solvency IIcapital ratio. Aegon has a 29.98% stake in a.s.r. following the completion of the transaction. The impact from this 29.98% stake has been excluded in the sensitivities of the Group solvency ratio.
Please note that the sensitivities listed in the tables below represent sensitivities to Aegon’s position at the balance sheet date. The sensitivities reflect single shocks, – except for the US credit default shock which also includes assumed rating migration – where other
elements remain unchanged. Real worldReal-world market impacts (e.g.(for example, lower interest rates and declining
Group | Americas 1) | NL Life | SE Plc | |||||||||||||||||||||||||||||||||
Scenario | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Equity markets | (25% | ) | (8% | ) | (11% | ) | (24% | ) | (29% | ) | (2% | ) | (5% | ) | 2% | (5% | ) | |||||||||||||||||||
Equity markets | +25% | 2% | 7% | 14% | 20% | (1% | ) | 1% | (3% | ) | (1% | ) | ||||||||||||||||||||||||
Interest rates | -50bps | (0% | ) | 0% | 1% | (3% | ) | 7% | 9% | (2% | ) | (1% | ) | |||||||||||||||||||||||
Interest rates | +50bps | (1% | ) | 1% | 0% | 4% | (8% | ) | (8% | ) | 1% | 1% | ||||||||||||||||||||||||
Curve steepening | +10bps | (2% | ) | n.a. | n.a. | n.a. | (7% | ) | n.a. | n.a. | n.a. | |||||||||||||||||||||||||
Govt spreads excl EIOPA VA | -50bps | 0% | 3% | n.a. | n.a. | (3% | ) | 3% | 4% | 5% | ||||||||||||||||||||||||||
Govt spreads excl EIOPA VA | +50bps | 0% | (2% | ) | n.a. | n.a. | 6% | (2% | ) | (4% | ) | (5% | ) | |||||||||||||||||||||||
Non-govt spreads excl EIOPA VA 2) | -50bps | (1% | ) | 0% | (3% | ) | (1% | ) | 11% | 9% | (9% | ) | (10% | ) | ||||||||||||||||||||||
Non-govt spreads excl EIOPA VA 2) | +50bps | (1% | ) | 0% | 4% | 1% | (11% | ) | (10% | ) | 1% | 6% | ||||||||||||||||||||||||
US Credit Defaults 3) | ~+200 bps | (17% | ) | (18% | ) | (38% | ) | (38% | ) | n.a. | n.a. | n.a. | n.a. | |||||||||||||||||||||||
UFR | -15bps | (2% | ) | (2% | ) | n.a. | n.a. | (6% | ) | (6% | ) | n.a. | n.a. | |||||||||||||||||||||||
Longevity 4) | +5% | (5% | ) | (7% | ) | (8% | ) | (12% | ) | (8% | ) | (10% | ) | (2% | ) | (3% | ) | |||||||||||||||||||
Mortgage spreads | -50bps | 2% | 2% | n.a. | n.a. | 6% | 6% | n.a. | n.a. | |||||||||||||||||||||||||||
Mortgage spreads | +50bps | (2% | ) | (2% | ) | n.a. | n.a. | (6% | ) | (6% | ) | n.a. | n.a. | |||||||||||||||||||||||
EIOPA VA | -5bps | 0% | 0% | n.a. | n.a. | 1% | (1% | ) | n.a. | n.a. | ||||||||||||||||||||||||||
EIOPA VA | +5bps | (0% | ) | 0% | n.a. | n.a. | (1% | ) | 1% | n.a. | n.a. |
88 | Annual Report on Form 20-F 2023
Capital and | ||||
Scenario | Group | Americas2) | SE Plc | |||||||||||||||||||||||||||||||||||||||||||||||||
20231) | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity markets | (25% | ) | (5% | ) | (4% | ) | (14% | ) | (15% | ) | 7% | 10% | ||||||||||||||||||||||||||||||||||||||||
Equity markets | +25% | 0% | 0% | 3% | 7% | (6% | ) | (8% | ) | |||||||||||||||||||||||||||||||||||||||||||
Interest rates | -50bps | 0% | 2% | 1% | 0% | (1% | ) | 0% | ||||||||||||||||||||||||||||||||||||||||||||
Interest rates | +50bps | (1% | ) | (2% | ) | 1% | 1% | 1% | (2% | ) | ||||||||||||||||||||||||||||||||||||||||||
Govt spreads | -50bps | 0% | 1% | n.a. | n.a. | 2% | 1% | |||||||||||||||||||||||||||||||||||||||||||||
Govt spreads | +50bps | (1% | ) | (1% | ) | n.a. | n.a. | (2% | ) | (2% | ) | |||||||||||||||||||||||||||||||||||||||||
Non-govt spreads | -50bps | 1% | 1% | 0% | (2% | ) | 1% | 0% | ||||||||||||||||||||||||||||||||||||||||||||
Non-govt spreads | +50bps | (1% | ) | (2% | ) | 0% | 1% | 0% | (1% | ) | ||||||||||||||||||||||||||||||||||||||||||
US Credit Defaults 3) | ~3x long-term average | (3% | ) | n.a. | (6% | ) | n.a. | n.a. | n.a. | |||||||||||||||||||||||||||||||||||||||||||
US Credit Migration on 10% of assets 4) | 1 big letter downgrade | (3% | ) | n.a. | (8% | ) | n.a. | n.a. | n.a. | |||||||||||||||||||||||||||||||||||||||||||
Longevity | +5% | (4% | ) | (3% | ) | (10% | ) | (4% | ) | (1%) | (1% | ) |
1 | Excluding impact from 29.98% stake in a.s.r.. |
2 | The sensitivities are presented on a Solvency II equivalent basis, after application of the conversion methodology to US regulated (life) companies. |
Defaults equivalent to three times the long-term average over 12 months period, of which one third is reflected in operating capital generation and the remainder in this scenario; equivalent to a 1-in-10 scenario. |
Downgrade of 10% of the US general account by one big rating |
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Equity Sensitivities
Aegon is exposed to the risk of a falldownturn in equity markets. This is mainly a consequence of indirect equity exposure in the Americas.
In the Americas, equity sensitivities are primarily driven by the variable annuity (VA) business, where base contract fees are charged as a percentage of underlying funds, many of which are equity based. While guaranteed benefits are fully hedged for equity risk, the indirect equity exposure associated with the base contract fees is not. The asymmetry between the impacts of up and down shocks is caused by reserve flooring in the variable annuity business. At market levels per year-end 2021, an equity down shock would resultThe variable annuity voluntary reserve that was set up in reserves increasing. However, an equity up shock would not result in2022 provides a similar release of reserves, as reserves are floored at the cash surrender valuedampening of the policies.
Interest Rates Sensitivities
Aegon’s group solvency ratio of the Group is not very sensitive to movements in interest rates given the asset liability management and hedging programs that are in place.
In the Americas, a decrease in interest rates leads to higher reserves for variable annuities and universal life products, which are offset by payoffs from interest rate hedging programs. This offset from hedging has increased in 2021For the Americas, interest rate sensitivity results are quite stable due to Clearly Defined Hedging Strategy implemented in 3Q 2021 (net of SSAP108 deferrals). The SSAP 108 deferral reduces non-economic statutory surplus volatility by deferring the expansionbreakage between the reserves and hedge movement on TLIC. There is a deferral of net loss (creating an asset) in up rate shocks and a deferral of net gain (creating a liability) in down rate shocks to the balance sheet of the dynamic hedge program to all variable annuity contracts.
For SE Plc, the main insurance entity of Aegon UK, exposure to lower interest rates leads to higher required capital on mortality, expense and policyholder lapse risks which is partly offset by gains on the swaps held in the general account.
Spread Sensitivities
The non-government spread sensitivities include shocks on mortgages, corporatescorporate bonds and structured instruments. For NL Life the spread sensitivities reflect an internal model feature that mitigates volatility caused by the basis risk between the EIOPA VA reference portfolio and NL Life’s own asset portfolio.
The solvency ratio of NL Life is exposed to government spreads the Americas shows hardly any impact from spread widening/narrowing, becausewhich results from a higher/ lower discount rate used for valuing employee pension plan liabilities offset by the resulting increase of SCR outweighs the resultingnegative/positive impact from lower Own Funds in terms of ratio impact. The solvency ratio of SE Plc is exposed to spread widening which would have a negative impact on the valuation of fixed income assets.
Exposure to government spread sensitivities is driven by NL Life and SE Plc. NL Life is exposed to spreads narrowing compared to spreads widening last year. This sign change is due to higher interest rates, the sale of sovereigns over the year, and the change in composition of the Solvency II ratio over the year (more Own Funds but materially lower SCR). SE Plc, which is exposed to spreads widening due to the reduction in the value of fixed incomefixed-income assets.
Annual Report on Form 20-F 2023 | 89 |
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Credit default and migration sensitivities
Previously, the asset valuation. Thecredit sensitivity of the Americas credit defaults sensitivity reflectsreflected the combined impact of credit defaults and adverse credit rating migrations on assets held in the general account portfolio.
Longevity Sensitivities
All main business units contribute to the Groupcompany-wide risk that people will live longer than the expectations embedded in our provisions. The exposure has decreased since last year,
For the Americas, the longevity sensitivity widened compared to 2022. This is driven by improved premium deficiency reservemovements in Health, as mortality assumptions for both active and disabled lives were updated in 1H2023, with decreasing sufficiency impacts. The shock impact change is mostly driven by the erosion of sufficiency, which went down as a result of the 1H 2023 assumption update in the LTC business in the US, and additional longevity reinsurance that was implemented in NL Life.Americas.
90 | Annual Report on Form 20-F 20212023
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December 31, 2021 | December 31, 2020 | |||||||||||||||
Available Own Funds | Eligible Own Funds | Available Own Funds | Eligible Own Funds | |||||||||||||
Unrestricted Tier 1 | 14,044 | 14,044 | 12,972 | 12,972 | ||||||||||||
Restricted Tier 1 | 2,364 | 2,364 | 2,571 | 2,571 | ||||||||||||
Tier 2 | 2,348 | 2,348 | 2,340 | 2,340 | ||||||||||||
Tier 3 | 675 | 675 | 700 | 700 | ||||||||||||
Total Tiers | 19,431 | 19,431 | 18,582 | 18,582 |
supervision | ||||
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Regulation and supervision
Individually regulated Aegon companies are each subject to prudential supervision in their respective home countries and therefore are required to maintain a minimum solvency margin based on local requirements. In addition, the GroupAegon as a whole is subject to prudential requirements on a group basis, including capital, internal governance, risk management, reporting, and disclosure requirements, pursuantrequirements.
Developments in 2023
Following completion of the combination of the Aegon NL business with a.s.r.’s business operations in the Netherlands on July 4, 2023, Aegon no longer had a regulated insurance entity in the Netherlands. After an interim period during which the Dutch Central Bank (DNB) continued to fulfill the role of Aegon’s group supervisor, Aegon’s legal domicile transferred to Bermuda. Consequently, the role of group supervision moved to the Bermuda Monetary Authority (BMA) as of October 1, 2023.
Single-entity level Solvency II supervision continues to applicable in respect of Aegon’s regulated EEA insurance entities in Spain and the Financial Conglomerates Directive.
In addition, subgroup supervision is exercised by local supervisorsthe UK Prudential Regulatory Authority with respect to entities established in the United Kingdom as subsidiaries of Aegon Europe Holding B.V. on the basis of the relevant provisions of the UK regulatory regime for insurers.
For other individual insurance companiesregulated subsidiaries, there is no change in the Aegon applicable regulatory regime and legal requirements as a result of the redomiciliation of Aegon’s top holding company.
Group and, in addition,Supervision
Following the redomiciliation, Aegon’s group supervision is exercised by the BMA and, accordingly, the relevant Bermudian laws and regulations concerning group supervision are applicable.
The Bermuda Insurance Act 1978 and related regulations provide the BMA with broad authority to perform its group supervisor atrole with a wide range of functions and supervisory activities, including but not limited to (i) coordinate the gathering of information and dissemination of relevant or essential information for going concerns and emergency situations (including information which is important for the supervisory task of other competent authorities), (ii) review and assess the financial situation of the group, level. The Dutch Central Bank (DNB)(iii) assess the compliance with the rules on solvency and on risk concentration and intra-group transactions of the group, (iv) assess the system of governance of the group, (v) plan and coordinate supervisory activities in cooperation with
other competent authorities concerned, (vi) coordinate any enforcement action against the group and its members and (vii) plan and coordinate meetings of the college of supervisors of the Aegon Group. Bermuda’s regulatory regime is Aegon’swell recognized, having been granted equivalent status by the EU under the Solvency II regime, and by the UK under its own Solvency UK regime. It has also been designated as a qualified jurisdiction and reciprocal jurisdiction by the US National Association of Insurance Commissioners (NAIC).
Group Solvency
In Bermuda, Aegon’s group supervisor.solvency ratio and surplus under the Bermuda solvency framework will be broadly in line with that under the Solvency II contains economic, risk-based capital requirements for insurance companies in all EU member states, as well as for groups with insurance and/or reinsurance activities inRegime during a transition period until the EU. The Solvency II approach to prudential supervision can be described as a ‘total balance sheet-approach,’ and takes material risks to which insuranceend of 2027. After the transition period, Aegon will fully adopt the Bermudian solvency framework.
Insurance companies are exposed into account, as well as the interaction between risks.
Insurers and reinsurers are required to hold eligible own funds in addition to the assets held to cover the technical provisions in order to ensure that they are able to meet their obligations over the next 12 months with a probability of at least 99.5% (i.e.(that is, the ability to withstand a 1-in-200-year event). The buffer that insurance companies are required to holdThis objective is called the Solvency Capital Requirement (SCR). Insurance companies are allowed to:to use: (a) use a standard formula to calculate their SCR; (b) use a self-developed internal model; for which the approval of the supervisory authorities is required);required; or (c) use a partial internal model (PIM); a combination of the standard formula and an internal model;model that also requires approval of the supervisory authorities. An internal model should better reflect the actual risk profile of the insurance company than the standard formula. Aegon as a group,Ltd. uses a PIM.
During the Capital and Liquidity Management section.
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Annual Report on Form 20-F 2023 | 91 |
![]() | About Aegon Governance and risk management Financial information Sustainability information | |||
which provisional or full equivalence applies, such as the United States, Aegon uses the Deduction and Aggregation method, based on local regulatory requirements, to translate these into the Group Solvency position. US insurance entities are included in Aegon’s group solvency calculation in accordance with local US Risk-Based Capital (RBC) requirements. Aegon’s current method is applied since July 1, 2017 and received approval from DNB. DetailsActual solvency levels are included in Note 43 ‘Capitalnote 37 “Capital management and solvency’ tosolvency” in Aegon’s consolidated financial statements.
Designation as Internationally Active Insurance Group
Aegon retains its designation as an Internationally Active Insurance Group (IAIG) in accordance with the principles of ComFrame (the Common Framework for the Supervision of IAIGs). The provisions of ComFrame must be implemented in local legislation in order to have a combination ofbinding effect. To the supervisory authorities ofextent Bermudian regulations require these provisions for IAIGs these provisions are applicable. This also applies to the local insurance entities and the group supervisor. An important role in the cooperation between the supervisory authorities in the context of group supervision is played by the college of supervisors, in which the local and group supervisors are represented. This college is chaired by the group supervisor.
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Bermuda’s group supervision by DNB in accordance with the requirements of the EU’s Financial Conglomerate Directive. This includes supplementary capital adequacy requirementsframework reflects international developments and principles for financial conglomerates and supplementary supervision on risk
administration of IAIGs in recognitionBermuda. Once designated as an IAIG, the IAIG is subject to any rules that the BMA may make prescribing prudential or technical standards to the IAIG, and will continue to be subject to any other requirements of group supervision.
Aegon closely monitors all regulatory requirements resulting from its designation as an IAIG. As an example, we have monitored the Insurance Amendment Act 2023. This amendment to the Insurance Act 1978 was passed in May 2023; it empowers the BMA to require insurance groups to develop a recovery plan. The amendment also empowers the BMA to designate, for the purposes of supervision, a member company of an IAIG as its ‘head of the fact that the Holistic Framework (see below) provides an enhanced approach to assessing and mitigating systemic risk in the global insurance sector, the FSB decided to suspend the identification of G-SIIs. In November 2022, the FSB is expected to review the need to either discontinue or re-establish an annual identification of G-SIIs.
In November 2019, the IAIS adopted the Holistic Framework for the assessment and mitigation of systemic risk in the insurance sector. Some of the provisions of the Holistic Framework are included in the IAIS Insurance Core Principles (that apply to all insurers), while others are included in ComFrame (the Common Framework for the Supervision of Internationally Active Insurance Groups, or IAIGs).
Bermuda’s Insurance Act has been amended to give the BMA powers to make rules for recovery planning, and the BMA is finalizing requirements for recovery plans. In 2025, the BMA plans to publicly consult on the design and implementation of an insurance resolution regime in line with the standards of the IAIS.
Future laws and regulations
Aegon has taken note of reforms to Bermuda’s prudential regime, many of which will become applicable in 2024. Aegon further continues to closely monitor all regulatory requirements and changes to them, both at the consolidated level and at the level of individual regulated subsidiaries. In addition to prudential regulatory requirements, this includes ESG-related legislation, such as the Corporate Sustainability Reporting Directive, the Taxonomy Regulation, the Sustainable Finance Disclosure Regulation.
92 | Annual Report on Form 20-F 20212023
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Code of Conduct | ||||
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Code of Conduct
Aegon’s Code of Conduct embodies the Company’scompany’s values and helps ensure that all employees act ethically and responsibly and is available at
It prescribes a mandatory set of standards for how Aegon employees should conduct business, comply with all applicable laws and regulations, and exercise sound judgment in reaching ethical business decisions in the long-term interests of ourAegon’s stakeholders.
Aegon’s Code of Conduct applies to all directors,Directors, officers, and employees of all Aegon companies around the world (regardless of the contractual basis of their employment), including associate companies and joint ventures that are majority owned and/or controlled by Aegon N.V..Ltd. Companies in which Aegon does not hold a majority stake will be expected to either adopt the Aegon Code of Conduct or to implement an equivalent code.
All Aegon employees must certify that they have read and understood the Code of Conduct, and agree to abide by it. Employees are also required to follow mandatory training on a regular basis to help embed the principles of the Code in the way they work.
Any waivers to the Aegon Code made to Directors or Executive officers must be approved by the Aegon Ltd. Board of Directors or its Audit Committee. Waivers may only be granted in exceptional circumstances and will be promptly disclosed to our shareholders in accordance with applicable laws and stock exchange requirements. Aegon has elected to comply with home country practice and disclose any waivers to the Aegon Code in the Form 20-F instead of disclosing such waivers to shareholders within four business days pursuant to the NYSE rules. No waivers were requested or given during 2023.
Aegon Speak Up: Reporting misconduct
Breaching laws and regulations, the Code of Conduct, or internal policies and procedures may have serious
consequences for the Companycompany and its staff, ourits customers, shareholders, and business partners, and may also have a serious impact on the financial system or the public interest. At Aegon, ourAegon’s ambition is to be a trusted long-term partner to all ourits stakeholders, and therefore, wethe company would like to be made aware of any suspected unlawful, unethical, or otherwise improper
Aegon has introducedimplemented Aegon Speak Up to demonstrate its commitment to staff and other stakeholders that it encourages escalation ofpeople to report any concerns regarding potential misconduct and will not tolerate reprisalreprisals for making a good faith report.
Aegon Speak Up provides a safe environment for anyone who wishes to raise a concern about suspected or observed misconduct that involves Aegon.
For this purpose, Aegon has contracted with an independent third party to host a secure reporting channel for employees and others to report potential misconduct. Reports can be submitted online or via toll-free telephone lines in all of the countries in which Aegon conducts business (24 hours a day, seven days a week). Reporters can choose to remain anonymous. If an issue is found upon investigation, appropriate management action is taken to resolve the issue and prevent it from happening again to the extent feasible.
It is important that reporterspeople feel supported and protected by the company for bringing issues to the attention of management that may be harmful to the reputation and integrity of the Company,company, its employees, or other stakeholders. Aegon has established specific measures to provide support, and to address situations that present a risk of reprisal. Reporters who believe they have experienced retaliation are encouraged to immediately bring the issue to the attention of the Group Compliance Officer.
Annual Report on Form 20-F 2023 | 93 |
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Controls and procedures
Disclosure controls and procedures
At the end of the period covered by this Annual Report on Form 20-F, Aegon’s management carried out an evaluation, under the supervision and with the participation of its Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of Aegon’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based on this evaluation, Aegon’s CEO and CFO concluded that, as of December 31, 2021,2023, the disclosure controls and procedures were effective. There have been no material changes in the Company’scompany’s internal controls, or in other factors, that could significantly affect internal controlscontrol over financial reporting subsequent to the end of the period covered by this Annual Report.
Due to the listing of Aegon shares on the New York Stock Exchange, Aegon is required to comply with the US Securities and Exchange Commission regulations adopted pursuant to Section 404 of the Sarbanes-Oxley Act, or SOX 404. These regulations require that Aegon’s CEO (the Chairman of the Executive Board) and CFO report on and certify the effectiveness of Aegon’s internal controlscontrol over financial reporting on an annual basis. Furthermore, external auditors are required to provide an opinion on the effectivenessmanagement assessment of Aegon’s internal controlscontrol over financial reporting. The SOX 404 statement by the Executive Boardmanagement is stated below, followed by the report of the external auditor.
Management’s Annual Reportannual report on internal control over financial reporting
Aegon’s management is responsible for establishing and maintaining adequate internal control over financial reporting. Aegon’s internal control over financial reporting is a process designed under the supervision of Aegon’s principal executive and financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of its published financial statements. Internal control over financial reporting includes policies and procedures that:
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the |
Provide reasonable assurance that transactions are recorded as necessary to permit the preparation of financial statements in accordance with generally accepted accounting principles; |
Provide reasonable assurance that receipts and expenditures are made only in accordance with the authorizations of management and directors of the |
Provide reasonable assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on Aegon’s financial statements would be prevented or detected in a timely manner. |
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate.
Management assessed the effectiveness of Aegon’s internal control over financial reporting as of December 31, 2021.
In making its assessment management used the criteria established in ‘Internal“Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission’Commission” (COSO, 2013 framework).
Besides enhancements to our internal control over financial reporting related to the transaction with a.s.r. and the adoption of IFRS 9 and IFRS 17, there were no other changes to our internal control over financial reporting during the year ended December 31, 20212023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have not experienced any material impact to our internal control over financial reporting despite the fact that our employees are currently working remotely due to the COVID-19 pandemic. We are continually monitoring and assessing the COVID-19 situation to minimize the impact of the pandemic on the design and operating effectiveness of our internal control over financial reporting.
Based on the assessment, management concluded that, in all material aspects, the internal control over financial reporting was effective as of December 31, 2021.2023. They have reviewed the results of its work with the Audit Committee of the Supervisory Board.
Attestation report of the registered public accounting firm
Management’s assessment of the effectiveness of internal control over financial reporting as of December 31, 2021,2023, was audited by PricewaterhouseCoopers Accountants N.V., an independent registered public accounting firm, as stated in their report included on page 291.
94 | Annual Report on Form 20-F 20212023
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Management’s assessment of going concern
Aegon’s management has adopted a going concern basis, in preparing the consolidated financial statements, on the reasonable assumption that the Companycompany is, and will be, able to continue its normal course of business in the foreseeable future.
Relevant facts and circumstances, relating to the consolidated financial position on December 31, 2021,2023, were assessed in order to reach the going concern assumption. The main areas assessed are financial performance, capital adequacy, financial flexibility, liquidity, and access to capital markets, together with the factors likely to affect Aegon’s future development, performance, and financial position. Commentary on these is set out in the ‘Capital“Capital and liquidity management’management”, ‘Risk management’“Risk management”, ‘Results“Results of operations’operations” and ‘Business overview’“Business overview” sections in this Annual Report.Report on Form 20-F. Aegon’s CEO and CFO concluded that the going concern assumption is appropriate on the basis of the financial performance of the Company,company, its continued ability to access capital markets, adequate solvency ratios, and the level of leverage and Cash Capital at Holding.
The Hague, the Netherlands, March 21, 2022
The Executive BoardDirector and CFO of Aegon N.V.
Lard Friese, CEO
Matthew J. Rider, CFO
Annual Report on Form 20-F 2023 | 95 |
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124 | Consolidated statement of comprehensive income of Aegon Ltd. | |
126 | Consolidated statement of financial position of Aegon Ltd. | |
127 | Consolidated statement of changes in equity of Aegon Ltd. | |
130 | Consolidated cash flow statement of Aegon Ltd. | |
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366 | Statement of financial position of Aegon Ltd. | |
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Annual Report on Form 20-F 2023 | 99 |
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In EUR millions (except per share amount) | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||
Amounts based upon IFRS | ||||||||||||||||||||
Premium income | 15,444 | 16,099 | 18,138 | 19,316 | 22,826 | |||||||||||||||
Investment income | 6,967 | 7,149 | 7,531 | 7,035 | 7,338 | |||||||||||||||
Total revenues 1) | 25,209 | 25,657 | 28,197 | 28,914 | 32,973 | |||||||||||||||
Result before tax | 2,400 | (364 | ) | 1,453 | 746 | 2,534 | ||||||||||||||
Net result | 2,029 | (135 | ) | 1,236 | 707 | 2,469 | ||||||||||||||
Earnings per common share | ||||||||||||||||||||
Basic | 0.94 | (0.09 | ) | 0.56 | 0.29 | 1.14 | ||||||||||||||
Diluted | 0.94 | (0.09 | ) | 0.56 | 0.29 | 1.14 | ||||||||||||||
Earnings per common share B | ||||||||||||||||||||
Basic | 0.02 | (0.00 | ) | 0.01 | 0.01 | 0.03 | ||||||||||||||
Diluted | 0.02 | (0.00 | ) | 0.01 | 0.01 | 0.03 | ||||||||||||||
1 Excluded from the income statements prepared in accordance with IFRS are receipts related to investment-type annuity products and investment contracts. | ||||||||||||||||||||
Selected consolidated balance sheet information | ||||||||||||||||||||
In EUR millions | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||
Amounts based upon IFRS | ||||||||||||||||||||
Total assets | 468,252 | 443,814 | 439,769 | 392,008 | 395,923 | |||||||||||||||
Insurance and investment contracts | 400,104 | 370,286 | 371,014 | 329,974 | 324,392 | |||||||||||||||
Borrowings including subordinated and trust pass-through securities | 11,980 | 10,735 | 11,650 | 13,583 | 14,532 | |||||||||||||||
Shareholders’ equity | 23,813 | 22,018 | 21,842 | 19,189 | 20,266 | |||||||||||||||
Number of common shares | ||||||||||||||||||||
In thousands | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||
Balance at January 1 | 2,098,114 | 2,105,139 | 2,095,648 | 2,095,648 | 2,074,549 | |||||||||||||||
Share issuance | - | - | - | - | - | |||||||||||||||
Stock dividends | 10,665 | 2,466 | 9,491 | - | 21,099 | |||||||||||||||
Shares withdrawn | (2,466 | ) | (9,491 | ) | - | - | - | |||||||||||||
Balance at end of period | 2,106,313 | 2,098,114 | 2,105,139 | 2,095,648 | 2,095,648 |
In EUR millions (except per share amount) | 2023 | 2022 3) | 2021 4) | 2020 4) | 2019 4) | |||||||||||||||
Amounts based upon IFRS | ||||||||||||||||||||
Insurance service result | 342 | 430 | n.a. | n.a. | n.a. | |||||||||||||||
Net investment result | (139 | ) | 329 | n.a. | n.a. | n.a. | ||||||||||||||
Other result | (894 | ) | (173 | ) | n.a. | n.a. | n.a. | |||||||||||||
Premium income 1) | n.a. | n.a. | 13,731 | 14,105 | 16,015 | |||||||||||||||
Investment income 1) | n.a. | n.a. | 4,893 | 5,087 | 5,319 | |||||||||||||||
Total revenues 1) | n.a. | n.a. | 21,091 | 21,318 | 23,597 | |||||||||||||||
Result before tax from continuing operations | (391 | ) | 827 | 1,164 | (958 | ) | 1,197 | |||||||||||||
Net result from continuing and discontinued operations | (199 | ) | (540 | ) | 2,029 | (135 | ) | 1,236 | ||||||||||||
Earnings per common share 2) | ||||||||||||||||||||
Basic | (0.12 | ) | (0.30 | ) | 0.94 | (0.09 | ) | 0.56 | ||||||||||||
Diluted | (0.12 | ) | (0.30 | ) | 0.94 | (0.09 | ) | 0.56 | ||||||||||||
Earnings per common share B 2) | ||||||||||||||||||||
Basic | - | (0.01 | ) | 0.02 | - | 0.01 | ||||||||||||||
Diluted | - | (0.01 | ) | 0.02 | - | 0.01 | ||||||||||||||
Earnings per common share from continuing operations 2) | ||||||||||||||||||||
Basic | (0.11 | ) | 0.34 | 0.48 | (0.33 | ) | 0.45 | |||||||||||||
Diluted | (0.11 | ) | 0.34 | 0.48 | (0.33 | ) | 0.45 | |||||||||||||
Earnings per common share B from continuing operations 2) | ||||||||||||||||||||
Basic | - | 0.01 | 0.01 | (0.01 | ) | 0.01 | ||||||||||||||
Diluted | - | 0.01 | 0.01 | (0.01 | ) | 0.01 |
1 | Premium income, investment income and total revenues are financial statements line items no longer applicable under IFRS 17. |
2 | Earnings in the above table refers to Net result. |
3 | 2022 comparatives have been restated due to the initial application of IFRS 9 and IFRS 17, see note 2 of the consolidated financial statements for further details on the changes in accounting policies. |
4 | 2021-2019 comparatives have not been restated as IFRS only requires 1 year of comparatives related to the initial application of IFRS 9 and IFRS 17. |
5 | n.a. in above table should be read as “not applicable”. |
![]() | Selected financial data | |||
In EUR millions | 2023 | 2022 1) | 2021 2) | 2020 2) | 2019 2) | |||||||||||||||
Amounts based upon IFRS | ||||||||||||||||||||
Assets held for sale | 432 | 88,664 | - | - | - | |||||||||||||||
Investments | 266,382 | 254,759 | 408,784 | 380,713 | 372,350 | |||||||||||||||
Total assets | 301,581 | 380,711 | 468,252 | 443,814 | 439,769 | |||||||||||||||
Shareholders’ equity | 7,475 | 8,815 | 23,813 | 22,018 | 21,842 | |||||||||||||||
Reinsurance contracts | 16,000 | 16,669 | 20,992 | 18,910 | 20,253 | |||||||||||||||
Insurance contracts | 177,262 | 176,083 | 273,745 | 257,587 | 258,595 | |||||||||||||||
Investments contracts with DPF | 21,594 | 21,055 | n.a. | n.a. | n.a. | |||||||||||||||
Investments contracts without DPF | 75,266 | 65,227 | n.a. | n.a. | n.a. | |||||||||||||||
Liabilities held for sale | 389 | 83,959 | - | - | - |
1 | 2022 comparatives have been restated due to the initial application of IFRS 9 and IFRS 17, see note 2 for further details on the changes in accounting policies. |
2 | 2021-2019 comparatives have not been restated as IFRS only requires 1 year of comparatives related to the initial application of IFRS 9 and IFRS 17. |
3 | n.a. in above table should be read as “not applicable”. |
In thousands | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||
Balance on January 1 | 2,109,430 | 2,106,313 | 2,098,114 | 2,105,139 | 2,095,648 | |||||||||||||||
Stock dividends | - | 13,782 | 10,665 | 2,466 | 9,491 | |||||||||||||||
Shares withdrawn | (294,703 | ) | (10,665 | ) | (2,466 | ) | (9,491 | ) | - | |||||||||||
Balance at end of period | 1,814,727 | 2,109,430 | 2,106,313 | 2,098,114 | 2,105,139 |
In thousands | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||
Balance at January 1 | 571,795 | 585,022 | 585,022 | 585,022 | 585,022 | |||||||||||||||
Shares withdrawn | (2,956 | ) | (13,227 | ) | - | - | - | |||||||||||||
Balance at end of period | 568,839 | 571,795 | 585,022 | 585,022 | 585,022 |
In thousands | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||
Balance on January 1 | 546,196 | 568,839 | 571,795 | 585,022 | 585,022 | |||||||||||||||
Shares withdrawn | (156,437 | ) | (22,643 | ) | (2,956 | ) | (13,227 | ) | - | |||||||||||
Balance at end of period | 389,759 | 546,196 | 568,839 | 571,795 | 585,022 |
EUR per common share | USD per common share | |||||||||||||||||||||||||||||||||||||||||||||||
EUR per common share 1) | USD per common share 1) | |||||||||||||||||||||||||||||||||||||||||||||||
Year | Interim | Final | Total | Interim | Final | Total | ||||||||||||||||||||||||||||||||||||||||||
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Year | Interim | Final | Total | Interim | Final | Total | ||||||||||||||||||||||||||||||||||||||||||
2017 | 0.13 | 0.14 | 0.27 | 0.15 | 0.16 | 0.32 | ||||||||||||||||||||||||||||||||||||||||||
2018 | 0.14 | 0.15 | 0.29 | 0.16 | 0.17 | 0.33 | ||||||||||||||||||||||||||||||||||||||||||
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2019 | 0.15 | 0.00 2) | 0.15 | 0.17 | - | 0.17 | 0.15 | 0.00 1) | 0.15 | 0.17 | - | 0.17 | ||||||||||||||||||||||||||||||||||||
2020 | 0.06 | 0.06 | 0.12 | 0.07 | 0.07 | 0.14 | ||||||||||||||||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 0.06 | 0.06 | 0.12 | 0.07 | 0.07 | 0.14 | ||||||||||||||||||||||||||||||||||||||||||
2021 | 0.08 | 0.09 3) | 0.17 | 0.09 | ||||||||||||||||||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 0.08 | 0.09 | 0.17 | 0.09 | 0.10 | 0.19 | ||||||||||||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 0.11 | 0.12 | 0.23 | 0.11 | 0.13 | 0.24 | ||||||||||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 0.14 | 0.16 2) | 0.30 | 0.15 |
1 |
Aegon |
Annual Report on Form 20-F 2023 | 101 |
![]() ![]() | About Aegon Governance and risk management | |||
![]() | Results | |||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Operating result after tax | 1,582 | 1,425 | 11 | |||||||||
Tax on operating result | 324 | 285 | 14 | |||||||||
Operating result | ||||||||||||
Americas | 788 | 792 | - | |||||||||
The Netherlands | 755 | 665 | 13 | |||||||||
United Kingdom | 184 | 144 | 28 | |||||||||
International | 145 | 164 | (12) | |||||||||
Asset Management | 253 | 182 | 39 | |||||||||
Holding and other activities | (219) | (237) | 8 | |||||||||
Operating result | 1,906 | 1,710 | ||||||||||
Fair value items | 854 | (701) | n.m. | |||||||||
Realized gains / (losses) on investments | 446 | 150 | 196 | |||||||||
Net impairments | 53 | (237) | n.m. | |||||||||
Non-operating items | 1,352 | (788) | n.m. | |||||||||
Other income / (charges) | (780) | (1,239) | 37 | |||||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) | 2,478 | (317) | n.m. | |||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | 78 | 47 | 64 | |||||||||
Income tax | (449) | 181 | n.m. | |||||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | (78) | (47) | (64) | |||||||||
Net result | 2,029 | (135) | n.m. | |||||||||
Operating expenses | 3,775 | 3,852 | (2) | |||||||||
of which addressable expenses | 2,903 | 2,986 | (3) | |||||||||
New life sales | ||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Americas | 430 | 380 | 13 | |||||||||
The Netherlands | 74 | 92 | (19) | |||||||||
United Kingdom | 31 | 33 | (7) | |||||||||
International | 151 | 233 | (35) | |||||||||
Total recurring plus 1/10 single | 686 | 737 | (7) | |||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
New premium production accident and health insurance | 170 | 180 | (6) | |||||||||
New premium production property & casualty insurance | 96 | 126 | (23) | |||||||||
Gross deposits (on and off balance) | ||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Americas 2) | 32,861 | 36,359 | (10) | |||||||||
The Netherlands | 19,902 | 16,399 | 21 | |||||||||
United Kingdom | 24,764 | 8,599 | 188 | |||||||||
International | 26 | 320 | (92) | |||||||||
Asset Management 1) | 157,290 | 135,375 | 16 | |||||||||
Total gross deposits 2) | 234,843 | 197,053 | 19 |
Amounts in EUR millions | 2023 | 2022 1) | % | |||||||||
US Individual Solutions | 851 | 1,116 | (24) | |||||||||
US Workplace Solutions | 256 | 318 | (19) | |||||||||
Americas | 1,107 | 1,433 | (23) | |||||||||
United Kingdom | 214 | 211 | 1 | |||||||||
Global Platforms | 23 | 51 | (54) | |||||||||
Strategic Partnerships | 121 | 142 | (14) | |||||||||
Asset Management | 145 | 193 | (25) | |||||||||
Spain & Portugal | 86 | 88 | (3) | |||||||||
China (ATHTF) | 16 | 26 | (37) | |||||||||
Brazil | 45 | 25 | 76 | |||||||||
TLB | 54 | 82 | (34) | |||||||||
Other | (6 | ) | (20 | ) | 71 | |||||||
International | 196 | 202 | (3) | |||||||||
Holding and other activities | (163 | ) | (237 | ) | 31 | |||||||
Operating result | 1,498 | 1,802 | (17) | |||||||||
Fair value items | 76 | (218 | ) | n.m. | ||||||||
Realized gains / (losses) on investments | (659 | ) | (481 | ) | (37) | |||||||
Net impairments | (92 | ) | (122 | ) | 24 | |||||||
Non-operating items | (675 | ) | (820 | ) | 18 | |||||||
Other income / (charges) | (1,140 | ) | (1,366 | ) | 17 | |||||||
Result before tax | (317 | ) | (384 | ) | 18 | |||||||
Income tax | 118 | (156 | ) | n.m. | ||||||||
Net result | (199 | ) | (540 | ) | 63 | |||||||
Interest on financial leverage classified as equity after tax | (48 | ) | (36 | ) | (34) | |||||||
Net result after interest on financial leverage classified as equity | (247 | ) | (576 | ) | 57 | |||||||
Average common shareholders’ equity | 8,174 | 10,585 | (23) | |||||||||
Return on Equity 2) | 14.7% | 13.0% | ||||||||||
Americas | 1,525 | 1,447 | 5 | |||||||||
United Kingdom | 376 | 366 | 2 | |||||||||
Asset Management | 371 | 366 | 1 | |||||||||
International | 127 | 127 | - | |||||||||
Holding and other activities | 121 | 116 | 4 | |||||||||
Addressable expenses 3) | 2,519 | 2,422 | 4 | |||||||||
Operating expenses | 3,307 | 3,229 | 2 |
1 | 2022 comparatives have been restated due to the initial application of IFRS 9 and IFRS 17, see note 2 for further details on the changes in accounting policies. |
2 | Operating result after tax and after interest on financial leverage classified as equity / average common shareholders’ equity |
3 | Addressable expenses for all reporting periods are reported at constant currency at the current period foreign exchange rate. |
Annual Report on Form 20-F 2023 | 103 |
![]() | About Aegon Governance and risk management Financial information | |||
non-recurring benefit in the |
∎ | In Workplace Solutions, the operating result decreased by USD 57 million compared with the prior year to USD 277 million in 2023. The run-off of the Single Premium Group Annuities portfolio contributed to the decrease of the operating result. Thenon-insurance operating result of Retirement Plans decreased by USD 4 million to USD 131 million. This was partly offset by a benefit from higher investment income on general account stable value investments. Experience adjustments of USD 19 million in Workplace Solutions were more unfavorable in the year compared with 2022, and arose mainly from unfavorable lapse and morbidity experience in Workplace Health products, which compared with marginally positive morbidity experience in 2022. |
![]() | Results | |||
Annual Report on Form 20-F 2023 | 105 |
![]() | About Aegon Governance and risk management Financial information | |||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Americas 2) | (17,469 | ) | (19,461 | ) | 10 | |||||||
The Netherlands | (273 | ) | 1,758 | n.m. | ||||||||
United Kingdom | 10,228 | (3,587 | ) | n.m. | ||||||||
International | 3 | 155 | (98) | |||||||||
Asset Management 1) | 12,885 | 5,912 | 118 | |||||||||
Total net deposits / (outflows) 2) | 5,374 | (15,223 | ) | n.m. |
Amounts in EUR millions | Ameri- cas | The Nether- lands | United King- dom | Interna- tional | Asset Man- age- ment | Holding and other activi- ties | Segment total | Associ- ates and Joint Ven- tures elimina- tions | Consoli- dated | |||||||||||||||||||||||||||
Total life insurance gross premiums | 7,108 | 1,323 | 4,613 | 1,181 | - | - | 14,225 | (825 | ) | 13,400 | ||||||||||||||||||||||||||
Accident and health insurance premiums | 1,273 | 254 | 3 | 179 | - | - | 1,709 | (67 | ) | 1,643 | ||||||||||||||||||||||||||
Property & casualty insurance premiums | - | 136 | - | 432 | - | - | 569 | (168 | ) | 401 | ||||||||||||||||||||||||||
Total gross premiums | 8,381 | 1,713 | 4,616 | 1,793 | - | - | 16,504 | (1,060 | ) | 15,444 | ||||||||||||||||||||||||||
Investment income | 2,910 | 2,088 | 1,691 | 360 | 12 | (19 | ) | 7,042 | (75 | ) | 6,967 | |||||||||||||||||||||||||
Fee and commission income | 1,920 | 300 | 223 | 59 | 800 | (183 | ) | 3,120 | (335 | ) | 2,785 | |||||||||||||||||||||||||
Other revenue | 11 | - | - | 2 | 2 | 12 | 27 | (15 | ) | 13 | ||||||||||||||||||||||||||
Total revenues | 13,222 | 4,101 | 6,531 | 2,215 | 814 | (190 | ) | 26,693 | (1,484 | ) | 25,209 | |||||||||||||||||||||||||
Number of employees, including agent employees | 7,675 | 3,534 | 2,476 | 6,590 | 1,675 | 321 | 22,271 |
Amounts in EUR millions | Americas | The Nether- lands | United Kingdom | Interna- tional | Asset Man- age- ment | Holding and other activi- ties | Segment total | Associ- ates and Joint Ventures elimina- tions | Consoli- dated | |||||||||||||||||||||||||||
Total life insurance gross premiums | 7,105 | 1,619 | 4,833 | 1,095 | - | 1 | 14,654 | (726 | ) | 13,929 | ||||||||||||||||||||||||||
Accident and health insurance premiums | 1,380 | 245 | 25 | 193 | - | - | 1,844 | (59 | ) | 1,784 | ||||||||||||||||||||||||||
General insurance premiums | - | 130 | - | �� | 388 | - | - | 519 | (132 | ) | 386 | |||||||||||||||||||||||||
Total gross premiums | 8,485 | 1,994 | 4,858 | 1,677 | - | 1 | 17,016 | (917 | ) | 16,099 | ||||||||||||||||||||||||||
Investment income | 2,986 | 2,083 | 1,795 | 362 | 7 | (20 | ) | 7,212 | (63 | ) | 7,149 | |||||||||||||||||||||||||
Fee and commission income | 1,653 | 255 | 194 | 50 | 750 | (189 | ) | 2,713 | (308 | ) | 2,405 | |||||||||||||||||||||||||
Other revenue | 7 | - | - | 1 | 2 | 3 | 14 | (10 | ) | 4 | ||||||||||||||||||||||||||
Total revenues | 13,131 | 4,332 | 6,847 | 2,091 | 759 | (204 | ) | 26,955 | (1,298 | ) | 25,657 | |||||||||||||||||||||||||
Number of employees, including agent employees | 7,960 | 3,521 | 2,307 | 6,598 | 1,527 | 409 | 22,322 |
Note | 2023 | 2022 | ||||||||||
Insurance-related employee expenses | 604 | 637 | ||||||||||
Non-insurance-related employee expenses | 1,107 | 1,059 | ||||||||||
Insurance-related administrative expenses | 551 | 594 | ||||||||||
Non-insurance-related administrative expenses | 780 | 669 | ||||||||||
Operating expenses for IFRS reporting | 3,042 | 2,959 | ||||||||||
Discontinued operations - intercompany elimination | (12 | ) | (19 | ) | ||||||||
Operating expenses related to joint ventures and associates | 276 | 289 | ||||||||||
Operating expenses in result of operations | 3,307 | 3,229 | ||||||||||
Operating expenses related to joint ventures and associates | (276 | ) | (289 | ) | ||||||||
Amounts attributed to insurance acquisition cashflows | (49 | ) | (53 | ) | ||||||||
Restructuring expenses | (238 | ) | (39 | ) | ||||||||
Operational improvement plan expenses | (213 | ) | (340 | ) | ||||||||
Acquisition and disposals | (9 | ) | (33 | ) | ||||||||
Netting expenses / income | (4 | ) | - | |||||||||
Adjusting FX effect | 1 | (53 | ) | |||||||||
Addressable expenses | 2,519 | 2,422 |
![]() | Balance sheet items | |||
Amounts in EUR millions | 2023 | 2022 | % | |||||||||
Shareholders’ equity | 7,475 | 8,815 | (15) | |||||||||
Gross financial leverage | 5,064 | 5,621 | (10) | |||||||||
Gross financial leverage ratio (%) | 26.5% | 25.7% | ||||||||||
Americas | 5,063 | 5,801 | (13) | |||||||||
United Kingdom | 1,194 | 1,300 | (8) | |||||||||
International | 129 | 121 | 7 | |||||||||
Eliminations | 16 | 5 | n.m. | |||||||||
Contractual Service Margin (CSM) 1) (pro-forma after tax) | 6,403 | 7,227 | (11) |
1 | On IFRS basis, i.e. excluding joint ventures & associates. |
Amounts in EUR millions | 2023 | 2022 1) | % | |||||||||
CSM balance at beginning of period | 9,128 | 11,841 | (23) | |||||||||
New business | 430 | 496 | (13) | |||||||||
CSM release | (954 | ) | (1,291 | ) | 26 | |||||||
Accretion of interest | 237 | 258 | (8) | |||||||||
Claims and policyholder experience variance | (107 | ) | 108 | n.m. | ||||||||
Non-financial assumption changes | (282 | ) | (4 | ) | n.m. | |||||||
Non-disaggregated risk adjustment | (364 | ) | 803 | n.m. | ||||||||
Market impact on unhedged risk of VFA products | 700 | (865 | ) | n.m. | ||||||||
Net exchange differences | (202 | ) | 398 | n.m. | ||||||||
Transfer to disposal groups | (26 | ) | (2,515 | ) | 99 | |||||||
Other movements | (309 | ) | (101 | ) | n.m. | |||||||
CSM balance at end of period | 8,251 | 9,128 | (10) |
Annual Report on Form 20-F 2023 | 107 |
![]() | About Aegon Governance and risk management Financial information | |||
Capital position | ||||
Amounts in EUR millions | 2023 | 2022 | % | |||||||||
United States (USD) | ||||||||||||
Available capital | 8,106 | 7,984 | 2 | |||||||||
Required capital | 1,878 | 1,877 | - | |||||||||
US RBC ratio | 432% | 425% | ||||||||||
Scottish Equitable plc (UK) (GBP) | ||||||||||||
Own funds | 2,220 | 1,993 | 11 | |||||||||
SCR | 1,190 | 1,182 | 1 | |||||||||
UK SE Solvency II ratio | 187% | 169% | ||||||||||
Aegon Ltd. (EUR) | ||||||||||||
Eligible own funds | 14,250 | 16,332 | (13) | |||||||||
Consolidated Group SCR | 7,366 | 7,844 | (6) | |||||||||
Group Solvency ratio | 193% | 208% |
Amounts in EUR millions | 2023 | 2022 | % | |||||||||
Beginning of period | 1,614 | 1,279 | 26 | |||||||||
Americas | 514 | 520 | (1) | |||||||||
United Kingdom | 121 | 117 | 3 | |||||||||
Asset Management | 104 | 161 | (35) | |||||||||
International | 155 | 55 | 184 | |||||||||
Dividend received from a.s.r. | 68 | - | n.m. | |||||||||
The Netherlands | - | 180 | n.m. | |||||||||
Holding and other activities | - | - | n.m. | |||||||||
Gross remittances | 962 | 1,033 | (7) | |||||||||
Funding and operating expenses | (247 | ) | (254 | ) | 3 | |||||||
Free cash flow | 715 | 780 | (8) | |||||||||
Divestitures and acquisitions | 2,139 | 798 | 168 | |||||||||
Capital injections | (89 | ) | (54 | ) | (63) | |||||||
Capital flows from / (to) shareholders | (1,525 | ) | (713 | ) | (114) | |||||||
Net change in gross financial leverage | (500 | ) | (417 | ) | (20) | |||||||
Other | 32 | (56 | ) | n.m. | ||||||||
End of period | 2,387 | 1,614 | 48 |
Annual Report on Form 20-F 2023 | 109 |
![]() | About Aegon Governance and risk management Financial information | |||
Business updates – Americas | ||||
Amounts in USD millions | ||||||||||||
2023 | 2022 | % | ||||||||||
Strategic Assets KPIs | ||||||||||||
World Financial Group (WFG) | ||||||||||||
Number of licensed agents (end of period) | 73,719 | 62,637 | 18 | |||||||||
Number of multi-ticket agents (end of period) | 36,232 | 32,343 | 12 | |||||||||
Transamerica’s market share in WFG (US Life) | 64% | 62% | 3 | |||||||||
Individual Life | ||||||||||||
Earnings on in-force (Individual Life excl. WFG and Universal Life) | 664 | 509 | 30 | |||||||||
New business strain | 334 | 303 | 10 | |||||||||
Retirement Plans | ||||||||||||
Earnings on in-force (Retirement Plans excl. SPGA annuities) | 80 | 101 | (21) | |||||||||
Written sales mid-sized plans | 6,709 | 3,901 | 72 | |||||||||
Net deposits/(outflows) mid-sized plans | 1,175 | (4,437 | ) | n.m. | ||||||||
Individual Retirement Accounts AuA | 10,408 | 8,413 | 24 | |||||||||
General Account Stable Value AuA | 11,074 | 10,052 | 10 | |||||||||
Financial Assets KPIs | ||||||||||||
Operating Capital Generation 1) | 273 | 69 | n.m. | |||||||||
Capital employed in Financial Assets (at 400% RBC ratio) | 3,875 | 4,083 | (5) | |||||||||
Variable Annuities dynamic hedge effectiveness ratio (%) 2) | 99% | 97% | 1 | |||||||||
NPV of LTC rate increases approved since end-2022 | 245 | n.a. | n.a. | |||||||||
New business KPIs | ||||||||||||
Individual Solutions | 486 | 431 | 13 | |||||||||
Workplace Solutions | 68 | 67 | 2 | |||||||||
New life sales (recurring plus 1/10 single) | 554 | 498 | 11 | |||||||||
New premium production accident & health insurance | 105 | 133 | (21) | |||||||||
Individual Solutions | (6,756 | ) | (9,040 | ) | 25 | |||||||
Workplace Solutions | (4,950 | ) | (7,902 | ) | 37 | |||||||
Net deposits/(outflows) | (11,706 | ) | (16,942 | ) | 31 |
1 | Includes the capital generation of Universal Life for all periods. The classification of Universal Life has been changed to Financial Assets at the 2023 Capital Markets Day. |
2 | Dynamic Hedge effectiveness ratio (%) represents the hedge effectiveness on targeted risk, in particular impact from linear equity and interest rate movements. |
3 | n.a. in above table should be read as “not applicable”. |
Weighted average rate | Closing rate from | |||||||||||||||
Per 1 EUR | 2023 | 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
USD | 1.0813 | 1.0534 | 1.1047 | 1.0673 |
Annual Report on Form 20-F 2023 | 111 |
![]() | About Aegon Governance and risk management Financial information | |||
![]() | ||||
Business updates – | ||||
Annual Report on Form 20-F 2023 | 113 |
![]() | About Aegon Governance and risk management Financial information | |||
Business updates – United Kingdom | ||||
Amounts in GBP millions | ||||||||||||
2023 | 2022 | % | ||||||||||
Retail platform | (3,058 | ) | (877 | ) | n.m. | |||||||
Workplace Solutions platform | 1,814 | 2,223 | (18) | |||||||||
Total platform business | (1,244 | ) | 1,346 | n.m. | ||||||||
Traditional products | (1,196 | ) | (961 | ) | (24) | |||||||
Total platform and traditional business | (2,441 | ) | 385 | n.m. | ||||||||
Institutional | 2,492 | (2,743 | ) | n.m. | ||||||||
Total net deposits/(outflows) | 52 | (2,358 | ) | n.m. | ||||||||
New life sales (recurring plus 1/10 single) | 9 | 22 | (60) | |||||||||
Strategic KPIs | ||||||||||||
Annualized revenues gained/(lost) on net deposits | (16 | ) | (9 | ) | (73) | |||||||
Platform expenses / AuA (bps) | 24 bps | 21 bps |
Weighted average rate | Closing rate from | |||||||||||||||
Per 1 EUR | 2023 | 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
Pound Sterling | 0.8698 | 0.8528 | 0.8665 | 0.8872 |
Annual Report on Form 20-F 2023 | 115 |
![]() | About Aegon Governance and risk management Financial information | |||
Business updates – International | ||||
Amounts in EUR millions | 2023 | 2022 | % | |||||||||
Spain & Portugal | 46 | 56 | (18) | |||||||||
China | 103 | 87 | 19 | |||||||||
Brazil | 144 | 105 | 37 | |||||||||
TLB and others | 21 | 6 | n.m. | |||||||||
New life sales (recurring plus 1/10 single) | 314 | 253 | 24 | |||||||||
New premium production accident & health insurance | 65 | 35 | 83 | |||||||||
New premium production property & casualty insurance | 69 | 82 | (16) |
Weighted average rate | Closing rate from | |||||||||||||||
Per 1 EUR | 2023 | 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
USD | 1.0813 | 1.0534 | 1.1047 | 1.0673 | ||||||||||||
Chinese Yuan Renminbi | 7.6602 | 7.0810 | 7.8344 | 7.4192 | ||||||||||||
Hungarian Forint | 381.6327 | 391.1604 | 382.2150 | 400.4500 | ||||||||||||
Brazil Real | 5.4009 | 5.4388 | 5.3659 | 5.6348 | ||||||||||||
Indian Rupee | 89.3086 | 82.7290 | 91.9221 | 88.2936 |
Annual Report on Form 20-F 2023 | 117 |
![]() | About Aegon Governance and risk management Financial information | |||
∎ | New life sales in Spain & Portugal decreased by EUR 10 million to EUR 46 million due to the divestment of Aegon’s stake in its joint venture with Liberbank, and reduced demand for mortgage-linked life sales in Santander Life driven by increased interest rates. |
∎ | New life sales in China increased by EUR 17 million to EUR 103 million mainly driven by success in the bancassurance and brokerage channels following the relaxation of the country’s COVID-19 measures at the beginning of the year. This was partly offset by the negative impact of a new pricing regulation related to insurance products with guaranteed interest rates in the second half of the year. |
∎ | In Brazil, new life sales increased by EUR 39 million to EUR 144 million mainly as a result of business growth in both group and individual products, while also reflecting Aegon’s increased economic stake. |
∎ | For TLB and others, new life sales improved to EUR 21 million driven by higher indexed universal life sales in Singapore and Bermuda. |
Business updates – Asset Management | ||||
Amounts in EUR millions | 2023 | 2022 | % | |||||||||
General Account | 1,191 | (9,742 | ) | n.m. | ||||||||
Affiliate | (916 | ) | (2,061 | ) | 56 | |||||||
Third Party | (621 | ) | (3,798 | ) | 84 | |||||||
Global Platforms | (347 | ) | (15,601 | ) | 98 | |||||||
Strategic Partnerships | (2,727 | ) | 3,569 | n.m. | ||||||||
Net deposits/(outflows) | (3,074 | ) | (12,032 | ) | 74 | |||||||
Strategic KPIs | ||||||||||||
Annualized revenues gained/(lost) on net deposits - Global Platforms | 1 | (23 | ) | n.m. | ||||||||
General Account | 70,024 | 91,457 | (23) | |||||||||
Affiliate | 39,674 | 61,174 | (35) | |||||||||
Third Party | 139,821 | 83,045 | 68 | |||||||||
Global Platforms | 249,519 | 235,677 | 6 | |||||||||
Strategic Partnerships | 55,483 | 57,429 | (3) | |||||||||
Assets under Management | 305,002 | 293,106 | 4 |
Weighted average rate | Closing rate from | |||||||||||||||
Per 1 EUR | 2023 | 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
USD | 1.0813 | 1.0534 | 1.1047 | 1.0673 | ||||||||||||
Pound Sterling | 0.8698 | 0.8528 | 0.8665 | 0.8872 | ||||||||||||
Hungarian Forint | 381.6327 | 391.1604 | 382.2150 | 400.4500 | ||||||||||||
Chinese Yuan Renminbi | 7.6602 | 7.0810 | 7.8344 | 7.4192 |
Annual Report on Form 20-F 2023 | 119 |
![]() ![]() | About Aegon Governance and risk management Financial information | |||
Amounts in USD millions | Amounts in EUR millions | |||||||||||||||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||
Operating result after tax | 845 | 824 | 3 | 714 | 721 | (1) | ||||||||||||||||||
Tax on operating result | 88 | 80 | 9 | 74 | 70 | 5 | ||||||||||||||||||
Operating result | ||||||||||||||||||||||||
Individual Solutions | 668 | 639 | 5 | 565 | 560 | 1 | ||||||||||||||||||
Workplace Solutions | 268 | 254 | 6 | 226 | 222 | 2 | ||||||||||||||||||
Brazil | (3 | ) | 11 | n.m. | (3 | ) | 10 | n.m. | ||||||||||||||||
Operating result | 932 | 904 | 3 | 788 | 792 | - | ||||||||||||||||||
Fair value items | 826 | (511 | ) | n.m. | 698 | (448 | ) | n.m. | ||||||||||||||||
Realized gains / (losses) on investments | 370 | 106 | n.m. | 313 | 93 | n.m. | ||||||||||||||||||
Net impairments | 17 | (166 | ) | n.m. | 15 | (146 | ) | n.m. | ||||||||||||||||
Non-operating items | 1,213 | (571 | ) | n.m. | 1,025 | (500 | ) | n.m. | ||||||||||||||||
Other income / (charges) | (789 | ) | (1,267 | ) | 38 | (667 | ) | (1,110 | ) | 40 | ||||||||||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) | 1,357 | (935 | ) | n.m. | 1,147 | (819 | ) | n.m. | ||||||||||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | - | 5 | (98) | - | 5 | (98) | ||||||||||||||||||
Income tax | (162 | ) | 324 | n.m. | (137 | ) | 284 | n.m. | ||||||||||||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | - | (5 | ) | 98 | - | (5 | ) | 98 | ||||||||||||||||
Net result | 1,195 | (611 | ) | n.m. | 1,010 | (535 | ) | n.m. | ||||||||||||||||
Life insurance gross premiums | 8,409 | 8,111 | 4 | 7,108 | 7,105 | - | ||||||||||||||||||
Accident and health insurance premiums | 1,506 | 1,575 | (4) | 1,273 | 1,380 | (8) | ||||||||||||||||||
Total gross premiums | 9,915 | 9,686 | 2 | 8,381 | 8,485 | (1) | ||||||||||||||||||
Investment income | 3,442 | 3,408 | 1 | 2,910 | 2,986 | (3) | ||||||||||||||||||
Fee and commission income | 2,272 | 1,887 | 20 | 1,920 | 1,653 | 16 | ||||||||||||||||||
Other revenues | 13 | 8 | 60 | 11 | 7 | 54 | ||||||||||||||||||
Total revenues | 15,643 | 14,990 | 4 | 13,222 | 13,131 | 1 | ||||||||||||||||||
Operating expenses | 1,750 | 1,784 | (2) | 1,479 | 1,562 | (5) | ||||||||||||||||||
of which addressable expenses | 1,541 | 1,557 | (1) | 1,303 | 1,364 | (4) |
Amounts in USD millions | Amounts in EUR millions | |||||||||||||||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||
Individual Solutions | 360 | 302 | 19 | 304 | 264 | 15 | ||||||||||||||||||
Workplace Solutions | 57 | 56 | 1 | 48 | 49 | (2) | ||||||||||||||||||
Brazil | 92 | 75 | 22 | 77 | 66 | 18 | ||||||||||||||||||
Total recurring plus 1/10 single | 508 | 433 | 17 | 430 | 380 | 13 | ||||||||||||||||||
Amounts in USD millions | Amounts in EUR millions | |||||||||||||||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||
New premium production accident and health insurance | 152 | 154 | (1) | 129 | 135 | (5) |
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Amounts in USD millions | Amounts in EUR millions | |||||||||||||||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||
Individual Solutions | 10,298 | 12,374 | (17) | 8,704 | 10,839 | (20) | ||||||||||||||||||
Workplace Solutions 1) | 28,154 | 28,954 | (3) | 23,797 | 25,363 | (6) | ||||||||||||||||||
Brazil | 427 | 180 | 138 | 361 | 157 | 129 | ||||||||||||||||||
Total gross deposits 1) | 38,878 | 41,508 | (6) | 32,861 | 36,359 | (10) |
Amounts in USD millions | Amounts in EUR millions | |||||||||||||||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||
Individual Solutions | (7,709) | (3,184) | (142) | (6,516) | (2,789) | (134) | ||||||||||||||||||
Workplace Solutions 1) | (13,179) | (19,054) | 31 | (11,140) | (16,691) | 33 | ||||||||||||||||||
Brazil | 222 | 21 | n.m. | 187 | 18 | n.m. | ||||||||||||||||||
Total net deposits / (outflows) 1) | (20,667) | (22,217) | 7 | (17,469) | (19,461) | 10 |
Weighted average rate | Closing rate as of | |||||||||||||||
Per 1 EUR | 2021 | 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||
USD | 1.1831 | 1.1416 | 1.1372 | 1.2236 |
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Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Operating result after tax | 573 | 495 | 16 | |||||||||
Tax on operating result | 181 | 170 | 7 | |||||||||
Operating result | ||||||||||||
Life | 519 | 466 | 11 | |||||||||
Mortgages | 71 | 51 | 39 | |||||||||
Bank | 115 | 113 | 2 | |||||||||
Workplace solutions | 50 | 35 | 41 | |||||||||
Operating result | 755 | 665 | 13 | |||||||||
Fair value items | 221 | (230 | ) | n.m. | ||||||||
Realized gains / (losses) on investments | 118 | 14 | n.m. | |||||||||
Net impairments | 40 | (49 | ) | n.m. | ||||||||
Non-operating items | 378 | (265 | ) | n.m. | ||||||||
Other income / (charges) | (23 | ) | 78 | n.m. | ||||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) | 1,110 | 478 | 132 | |||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | - | - | n.m. | |||||||||
Income tax | (276 | ) | (107 | ) | (158) | |||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | - | - | n.m. | |||||||||
Net result | 833 | 371 | (10) | |||||||||
Life insurance gross premiums | 1,323 | 1,619 | (18) | |||||||||
Accident and health insurance premiums | 254 | 245 | 4 | |||||||||
Property & casualty insurance | 136 | 130 | 5 | |||||||||
Total gross premiums | 1,713 | 1,994 | (14) | |||||||||
Investment income | 2,088 | 2,083 | - | |||||||||
Fee and commission income | 300 | 255 | 18 | |||||||||
Other revenues | - | - | n.m. | |||||||||
Total revenues | 4,101 | 4,332 | (5) | |||||||||
Operating expenses | 729 | 763 | (4) | |||||||||
of which addressable expenses | 607 | 633 | (4) | |||||||||
New Life Sales | ||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Life | 74 | 92 | (19) | |||||||||
Total recurring plus 1/10 single | 74 | 92 | (19) | |||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Mortgage origination | 10,856 | 11,069 | (2) | |||||||||
New premium production accident and health insurance | 10 | 16 | (37) | |||||||||
New premium production property & casualty insurance | 20 | 15 | 40 | |||||||||
Gross deposits (on and off balance) | ||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Bank | 19,006 | 15,453 | 23 | |||||||||
Workplace solutions | 896 | 946 | (5) | |||||||||
Total gross deposits | 19,902 | 16,399 | 21 |
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Net deposits (on and off balance) | ||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Bank | (1,012 | ) | 960 | n.m. | ||||||||
Workplace solutions | 739 | 798 | (7) | |||||||||
Total net deposits | (273 | ) | 1,758 | n.m. |
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Amounts in GBP millions | Amounts in EUR millions | |||||||||||||||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||
Operating result after tax | 143 | 126 | 14 | 166 | 142 | 17 | ||||||||||||||||||
Tax on operating result | 15 | 2 | n.m. | 17 | 2 | n.m. | ||||||||||||||||||
Operating result | 158 | 128 | 24 | 184 | 144 | 28 | ||||||||||||||||||
Fair value items | (53 | ) | (2 | ) | n.m. | (62 | ) | (2 | ) | n.m. | ||||||||||||||
Realized gains / (losses) on investments | 9 | - | n.m. | 10 | - | n.m. | ||||||||||||||||||
Non-operating items | (44 | ) | (1 | ) | n.m. | (51 | ) | (1 | ) | n.m. | ||||||||||||||
Other income / (charges) | 1 | (61 | ) | n.m. | 1 | (68 | ) | n.m. | ||||||||||||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) | 115 | 66 | 74 | 134 | 74 | 80 | ||||||||||||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | - | - | n.m. | - | - | n.m. | ||||||||||||||||||
Income tax | (10 | ) | (6 | ) | (62) | (12 | ) | (7 | ) | (68) | ||||||||||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | - | - | n.m. | - | - | n.m. | ||||||||||||||||||
Net result | 104 | 60 | 75 | 122 | 67 | 81 | ||||||||||||||||||
Life insurance gross premiums | 3,966 | 4,298 | (8) | 4,613 | 4,833 | (5) | ||||||||||||||||||
Accident and health insurance premiums | 3 | 23 | (88) | 3 | 25 | (87) | ||||||||||||||||||
Total gross premiums | 3,969 | 4,320 | (8) | 4,616 | 4,858 | (5) | ||||||||||||||||||
Investment income | 1,454 | 1,596 | (9) | 1,691 | 1,795 | (6) | ||||||||||||||||||
Fee and commission income | 192 | 172 | 11 | 223 | 194 | 15 | ||||||||||||||||||
Total revenues | 5,615 | 6,089 | (8) | 6,531 | 6,847 | (5) | ||||||||||||||||||
Operating expenses | 386 | 406 | (5) | 448 | 631 | (29) | ||||||||||||||||||
of which addressable expenses | 335 | 341 | (2) | 390 | 456 | (15) | ||||||||||||||||||
New life sales | ||||||||||||||||||||||||
Amounts in GBP millions | Amounts in EUR millions | |||||||||||||||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||
Total recurring plus 1/10 single | 27 | 30 | (10) | 31 | 33 | (7) | ||||||||||||||||||
Gross deposits (on and off balance) | ||||||||||||||||||||||||
Amounts in GBP millions | Amounts in EUR millions | |||||||||||||||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||
Total gross deposits | 21,292 | 7,646 | 178 | 24,764 | 8,599 | 188 | ||||||||||||||||||
Net deposits (on and off balance) | ||||||||||||||||||||||||
Amounts in GBP millions | Amounts in EUR millions | |||||||||||||||||||||||
2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||
Retail | (210 | ) | (1,095 | ) | 81 | (244 | ) | (1,232 | ) | 80 | ||||||||||||||
Workplace solutions | 1,493 | 1,104 | 35 | 1,736 | 1,242 | 40 | ||||||||||||||||||
Institutional | 8,754 | (2,548 | ) | n.m. | 10,181 | (2,865 | ) | n.m. | ||||||||||||||||
Traditional products | (1,246 | ) | (651 | ) | (91) | (1,449 | ) | (732 | ) | (98) | ||||||||||||||
Total net deposits | 8,792 | (3,190 | ) | n.m. | 10,228 | (3,587 | ) | n.m. |
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Exchange rates | ||||||||||||||||
Weighted average rate | Closing rate as of | |||||||||||||||
Per 1 EUR | 2021 | 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||
Pound Sterling | 0.8598 | 0.8892 | 0.8396 | 0.8951 |
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Results 2021 International | ||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Operating result after tax | 112 | 132 | (15) | |||||||||
Tax on operating result | 33 | 33 | 1 | |||||||||
Operating result | ||||||||||||
Spain & Portugal | 75 | 53 | 41 | |||||||||
China | 24 | 18 | 38 | |||||||||
TLB | 77 | 57 | 34 | |||||||||
Other | (31 | ) | 36 | n.m. | ||||||||
Operating result | 145 | 164 | (12) | |||||||||
Fair value items | (18 | ) | (7 | ) | (142) | |||||||
Realized gains / (losses) on investments | 2 | 46 | (96) | |||||||||
Net impairments | 1 | (16 | ) | n.m. | ||||||||
Non-operating items | (15 | ) | 22 | n.m. | ||||||||
Other income / (charges) | 65 | (1 | ) | n.m. | ||||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) | 195 | 186 | 5 | |||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | 20 | 3 | n.m. | |||||||||
Income tax | (36 | ) | (22 | ) | (68) | |||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | (20 | ) | (3 | ) | n.m. | |||||||
Net result | 159 | 164 | (3) | |||||||||
Life insurance gross premiums | 1,181 | 1,095 | 8 | |||||||||
Accident and health insurance premiums | 179 | 193 | (7) | |||||||||
Property & casualty insurance premiums | 432 | 388 | 11 | |||||||||
Total gross premiums | 1,793 | 1,677 | 7 | |||||||||
Investment income | 360 | 362 | - | |||||||||
Fee and commission income | 59 | 50 | 18 | |||||||||
Other revenues | 2 | 1 | 68 | |||||||||
Total revenues | 2,215 | 2,091 | 6 | |||||||||
Operating expenses | 386 | 400 | (3) | |||||||||
of which addressable expenses | 113 | 115 | (2) | |||||||||
New life sales | ||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
Spain & Portugal | 48 | 43 | 11 | |||||||||
China | 90 | 97 | (7) | |||||||||
TLB | 11 | 8 | 34 | |||||||||
Other | 2 | 84 | (97) | |||||||||
Total recurring plus 1/10 single | 151 | 233 | (35) | |||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||
New premium production accident and health insurance | 31 | 29 | 6 | |||||||||
New premium production property & casualty insurance | 76 | 111 | (32) |
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Gross deposits (on and off balance) | ||||||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||||||
Spain & Portugal | 15 | 15 | 4 | |||||||||||||
China | 10 | 9 | 14 | |||||||||||||
Other | - | 296 | n.m. | |||||||||||||
Total gross deposits | 26 | 320 | (92) | |||||||||||||
Net deposits (on and off balance) | ||||||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||||||
Spain & Portugal | - | 3 | (89) | |||||||||||||
China | 3 | 3 | (17) | |||||||||||||
Other | - | 148 | n.m. | |||||||||||||
Total net deposits | 3 | 155 | (98) | |||||||||||||
Exchange rates | ||||||||||||||||
Weighted average rate | Closing rate as of | |||||||||||||||
Per 1 EUR | 2021 | 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||
USD | 1.1831 | 1.1416 | 1.1372 | 1.2236 | ||||||||||||
Chinese Yuan Renminbi | 7.6313 | 7.8726 | 7.2478 | 8.0018 | ||||||||||||
Czech Koruna | 25.6418 | 26.4557 | 24.8500 | 26.2620 | ||||||||||||
Hungarian Florint | 358.4993 | 351.1554 | 368.5650 | 362.6850 | ||||||||||||
Polish Zloty | 4.5641 | 4.4433 | 4.5834 | 4.5589 | ||||||||||||
Romanian Leu | 4.9211 | 4.8370 | 4.9488 | 4.8675 | ||||||||||||
Turkish Lira | 10.4938 | 8.0394 | 15.1017 | 9.0940 | ||||||||||||
Ukrainian Hryvnia | 32.2848 | 30.8293 | 31.0257 | 34.6693 |
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Results 2021 Asset Management | ||||||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||||||
Operating result | 181 | 130 | 39 | |||||||||||||
Tax on operating result | 72 | 51 | 40 | |||||||||||||
Operating result | ||||||||||||||||
Global Platforms | 54 | 46 | 17 | |||||||||||||
Strategic Partnerships | 199 | 136 | 47 | |||||||||||||
Operating result | 253 | 182 | 39 | |||||||||||||
Fair value items | (1 | ) | 22 | n.m. | ||||||||||||
Realized gains / (losses) on investments | 2 | 1 | 148 | |||||||||||||
Net impairments | (1 | ) | (1 | ) | 53 | |||||||||||
Non-operating items | - | 22 | (99) | |||||||||||||
Other income / (charges) | (18 | ) | (8 | ) | (123) | |||||||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) | 235 | 195 | 21 | |||||||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | (57 | ) | 40 | n.m. | ||||||||||||
Income tax | (65 | ) | (44 | ) | (47) | |||||||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax | 57 | (40 | ) | n.m. | ||||||||||||
Net result | 170 | 151 | 13 | |||||||||||||
Management fees | 602 | 506 | 19 | |||||||||||||
Performance fees | 112 | 105 | 7 | |||||||||||||
Other | 75 | 65 | 16 | |||||||||||||
Total revenues | 788 | 676 | 17 | |||||||||||||
Operating expenses | 552 | 485 | 14 | |||||||||||||
of which addressable expenses | 371 | 359 | 3 | |||||||||||||
Operating Margin - Global Platforms only | 12.6% | 10.9% | ||||||||||||||
Gross deposits (on and off balance) | ||||||||||||||||
Amounts in EUR millions | 2021 | 2020 | % | |||||||||||||
Global Platforms | 52,845 | 51,950 | 2 | |||||||||||||
Strategic Partnerships | 131,204 | 115,544 | 14 | |||||||||||||
Total gross deposits | 184,049 | 167,494 | 10 | |||||||||||||
Exchange rates | ||||||||||||||||
Weighted average rate | Closing rate as of | |||||||||||||||
Per 1 EUR | 2021 | 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||
USD | 1.1831 | 1.1416 | 1.1372 | 1.2236 | ||||||||||||
Pound Sterling | 0.8598 | 0.8892 | 0.8396 | 0.8951 | ||||||||||||
Hungarian Florint | 358.4993 | 351.1554 | 368.5650 | 362.6850 | ||||||||||||
Chinese Yuan Renminbi | 7.6313 | 7.8726 | 7.2478 | 8.0018 |
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![]() | Exchange rates | |||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EUR | USD | GBP | EUR | USD | GBP | EUR | USD | GBP | EUR | USD | GBP | EUR | USD | GBP | ||||||||||||||||||||||||||||||||||||||||||||||||||
1 | EUR | - | 1.1372 | 0.8396 | - | 1.2236 | 0.8951 | - | 1.1225 | 0.8473 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | USD | 0.8794 | - | 0.7383 | 0.8173 | - | 0.7315 | 0.8909 | - | 0.7548 | EUR | - | 1.1047 | 0.8665 | - | 1.0673 | 0.8872 | |||||||||||||||||||||||||||||||||||||||||||||||
1 | GBP | 1.1910 | 1.3545 | - | 1.1172 | 1.3670 | - | 1.1802 | 1.3248 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | USD | 0.9052 | - | 0.7844 | 0.9369 | - | 0.8313 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | GBP | 1.1541 | 1.2749 | - | 1.1271 | 1.2030 | - |
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EUR | USD | GBP | EUR | USD | GBP | EUR | USD | GBP | EUR | USD | GBP | EUR | USD | GBP | ||||||||||||||||||||||||||||||||||||||||||||||||||
1 | EUR | - | 1.1831 | 0.8598 | - | 1.1416 | 0.8892 | - | 1.1197 | 0.8770 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | USD | 0.8452 | - | 0.7267 | 0.8760 | - | 0.7789 | 0.8931 | - | 0.7832 | EUR | - | 1.0813 | 0.8698 | - | 1.0534 | 0.8528 | |||||||||||||||||||||||||||||||||||||||||||||||
1 | GBP | 1.1631 | 1.3760 | - | 1.1246 | 1.2839 | - | 1.1403 | 1.2767 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | USD | 0.9248 | - | 0.8044 | 0.9493 | - | 0.8096 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | GBP | 1.1497 | 1.2432 | - | 1.1726 | 1.2352 | - |
Annual Report on Form 20-F 2023 | 121 |
![]() | About Aegon Governance and risk management | |||
Amounts in EUR millions (except per share data) | Note | 2021 | 2020 | 2019 | ||||||||||||
Premium income | 6 | 15,444 | 16,099 | 18,138 | ||||||||||||
Investment income | 7 | 6,967 | 7,149 | 7,531 | ||||||||||||
Fee and commission income | 8 | 2,785 | 2,405 | 2,523 | ||||||||||||
Other revenues | 13 | 4 | 6 | |||||||||||||
Total revenues | 25,209 | 25,657 | 28,197 | |||||||||||||
Income from reinsurance ceded | 9 | 4,289 | 3,965 | 3,586 | ||||||||||||
Results from financial transactions | 10 | 24,270 | 21,397 | 35,386 | ||||||||||||
Other income | 11 | 77 | 68 | 200 | ||||||||||||
Total income | 53,845 | 51,087 | 67,370 | |||||||||||||
Premiums paid to reinsurers | 6 | 3,518 | 2,703 | 2,434 | ||||||||||||
Policyholder claims and benefits | 12 | 41,852 | 42,006 | 56,856 | ||||||||||||
Profit sharing and rebates | 13 | 14 | 8 | 17 | ||||||||||||
Commissions and expenses | 14 | 5,984 | 5,983 | 6,153 | ||||||||||||
Impairment charges / (reversals) | 15 | 15 | 391 | 169 | ||||||||||||
Interest charges and related fees | 16 | 335 | 505 | 513 | ||||||||||||
Other charges | 17 | 104 | 150 | 1 | ||||||||||||
Total charges | 51,822 | 51,746 | 66,142 | |||||||||||||
Result before share in profit / (loss) of joint ventures, associates and tax | 2,024 | (659 | ) | 1,228 | ||||||||||||
Share in profit / (loss) of joint ventures | 25 | 265 | 184 | 214 | ||||||||||||
Share in profit / (loss) of associates | 25 | 112 | 111 | 12 | ||||||||||||
Result before tax | 2,400 | (364 | ) | 1,453 | ||||||||||||
Income tax (expense) / benefit | 18 | (371 | ) | 229 | (217 | ) | ||||||||||
Net result | 2,029 | (135 | ) | 1,236 | ||||||||||||
Net result attributable to: | ||||||||||||||||
Owners of Aegon N.V. | 1,980 | (146 | ) | 1,235 | ||||||||||||
Non-controlling interests | 50 | 11 | 0 | |||||||||||||
Earnings per share (EUR per share) | 19 | |||||||||||||||
Basic earnings per common share | 0.94 | (0.09 | ) | 0.56 | ||||||||||||
Basic earnings per common share B | 0.02 | 0 | 0.01 | |||||||||||||
Diluted earnings per common share | 0.94 | (0.09 | ) | 0.56 | ||||||||||||
Diluted earnings per common share B | 0.02 | 0 | 0.01 |
Amounts in EUR million (except per share data) | Note | 2023 | 2022 1) | |||||||||
Continuing operations | ||||||||||||
Insurance revenue | 6 | 10,386 | 11,251 | |||||||||
Insurance service expenses | 7,13 | (10,226 | ) | (11,097 | ) | |||||||
Net income / (expenses) on reinsurance held | 8 | 182 | 275 | |||||||||
Insurance service result | 342 | 430 | ||||||||||
Interest revenue on financial instruments calculated using the effective interest method | 2,738 | 2,898 | ||||||||||
Interest revenue on financial instruments measured at FVPL | 737 | 575 | ||||||||||
Other investment income | 1,283 | 1,153 | ||||||||||
Results from financial transactions | 12,302 | (29,505 | ) | |||||||||
Impairment (losses) / reversals | (86 | ) | (95 | ) | ||||||||
Insurance finance income / (expenses) | (17,650 | ) | 25,005 | |||||||||
Net reinsurance finance income / (expenses) on reinsurance held | 699 | 599 | ||||||||||
Interest expenses | (218 | ) | (97 | ) | ||||||||
Insurance net investment result | 9 | (196 | ) | 532 | ||||||||
Interest revenue on financial instruments calculated using the effective interest method | 599 | 409 | ||||||||||
Interest revenue on financial instruments measured at FVPL | 89 | 49 | ||||||||||
Other investment income | 550 | 411 | ||||||||||
Results from financial transactions | 6,929 | (10,656 | ) | |||||||||
Impairment (losses) / reversals | (33 | ) | (43 | ) | ||||||||
Investment contract income / (expenses) | (7,851 | ) | 9,808 | |||||||||
Interest expenses | (45 | ) | (3 | ) | ||||||||
Other net investment result | 10 | 238 | (26 | ) | ||||||||
Interest charges | (182 | ) | (182 | ) | ||||||||
Other financing income | - | 5 | ||||||||||
Financing net investment result | 11 | (182 | ) | (178 | ) | |||||||
Total net investment result | (139 | ) | 329 | |||||||||
Fees and commission income | 12 | 2,163 | 2,272 | |||||||||
Other operating expenses | 13 | (3,000 | ) | (2,786 | ) | |||||||
Other income / (charges) | 14 | (57 | ) | 341 | ||||||||
Other result | (894 | ) | (173 | ) | ||||||||
Result before share in profit / (loss) of joint ventures, associates and tax | (691 | ) | 585 | |||||||||
Share in profit / (loss) of joint ventures | 196 | 252 | ||||||||||
Share in profit / (loss) of associates | 103 | (11 | ) | |||||||||
Result before tax from continuing operations | (391 | ) | 827 | |||||||||
Income tax (expense) / benefit | 15 | 209 | (71 | ) | ||||||||
Net result from continuing operations | (182 | ) | 756 | |||||||||
Discontinued operations | ||||||||||||
Net result from discontinued operations | (17 | ) | (1,296 | ) | ||||||||
Net result from continuing and discontinued operations | (199 | ) | (540 | ) | ||||||||
Net income/ (loss) attributes to: | ||||||||||||
Net result attributable to owners of Aegon Ltd. | (179 | ) | (570 | ) | ||||||||
Non-controlling interests | (20 | ) | 29 | |||||||||
Earnings per share (EUR per share) | 16 | |||||||||||
Basic earnings per common share | (0.12 | ) | (0.30 | ) | ||||||||
Basic earnings per common share B | - | (0.01 | ) | |||||||||
Diluted earnings per common share | (0.12 | ) | (0.30 | ) | ||||||||
Diluted earnings per common share B | - | (0.01 | ) | |||||||||
Earnings per share (EUR per share) from continuing operations | ||||||||||||
Basic earnings per common share from continuing operations | (0.11 | ) | 0.34 | |||||||||
Basic earnings per common share B from continuing operations | - | 0.01 | ||||||||||
Diluted earnings per common share from continuing operations | (0.11 | ) | 0.34 | |||||||||
Diluted earnings per common share B from continuing operations | - | 0.01 |
1 | Comparatives have been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 includes further details on the changes in accounting policies. |
Consolidated financial statements of Aegon | ||||
Amounts in EUR millions (except per share data) | Note | 2021 | ||||||
Continuing operations | ||||||||
Premium income | 46.4 | 13,731 | ||||||
Investment income | 46.5 | 4,893 | ||||||
Fee and commission income | 46.6 | 2,454 | ||||||
Other revenues | 13 | |||||||
Total revenues | 21,091 | |||||||
Income from reinsurance ceded | 46.7 | 4,263 | ||||||
Results from financial transactions | 46.8 | 24,715 | ||||||
Other income | 46.9 | 49 | ||||||
Total income | 50,119 | |||||||
Premiums paid to reinsurers | 46.4 | 3,418 | ||||||
Policyholder claims and benefits | 46.10 | 40,097 | ||||||
Profit sharing and rebates | 46.11 | 8 | ||||||
Commissions and expenses | 46.12 | 5,286 | ||||||
Impairment charges / (reversals) | 46.13 | 16 | ||||||
Interest charges and related fees | 46.14 | 246 | ||||||
Other charges | 46.15 | 101 | ||||||
Total charges | 49,172 | |||||||
Result before share in profit / (loss) of joint ventures, associates and tax | 947 | |||||||
Share in profit / (loss) of joint ventures | 232 | |||||||
Share in profit / (loss) of associates | (15 | ) | ||||||
Result before tax from continuing operations | 1,164 | |||||||
Income tax (expense) / benefit | 46.16 | (95 | ) | |||||
Net result from continuing operations | 1,069 | |||||||
Discontinued operations | ||||||||
Net result from discontinued operations | 46.22 | 960 | ||||||
Net result from continuing and discontinued operations | 2,029 | |||||||
Net result attributable to: | ||||||||
Owners of Aegon Ltd | 1,980 | |||||||
Non-controlling interests | 50 | |||||||
Earnings per share (EUR per share) | 46.17 | |||||||
Basic earnings per common share | 0.94 | |||||||
Basic earnings per common share B | 0.02 | |||||||
Diluted earnings per common share | 0.94 | |||||||
Diluted earnings per common share B | 0.02 | |||||||
Basic earnings per common share from continuing operations | 0.48 | |||||||
Basic earnings per common share B from continuing operations | 0.01 | |||||||
Diluted earnings per common share from continuing operations | 0.48 | |||||||
Diluted earnings per common share B from continuing operations | 0.01 |
Annual Report on Form 20-F 2023 | 123 |
![]() | About Aegon Governance and risk management Financial information | |||
Amounts in EUR millions | 2021 | 1) | 2019 | Note | 2023 | 2022 1) | ||||||||||||||||||
Net result | 2,029 | (135 | ) | 1,236 | ||||||||||||||||||||
Net result from continuing and discontinued operations | ||||||||||||||||||||||||
Net result from continuing and discontinued operations | ||||||||||||||||||||||||
Net result from continuing and discontinued operations | ||||||||||||||||||||||||
Net result from continuing and discontinued operations | (199 | ) | (540 | ) | ||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||
Gains/ (losses) on investments in equity instruments (FVOCI) | ||||||||||||||||||||||||
Gains/ (losses) on investments in equity instruments (FVOCI) | ||||||||||||||||||||||||
Gains/ (losses) on investments in equity instruments (FVOCI) | ||||||||||||||||||||||||
Gains/ (losses) on investments in equity instruments (FVOCI) | - | (1 | ) | |||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | ||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | ||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | ||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | (4 | ) | 20 | (4 | ) | (2 | ) | (1 | ) | |||||||||||||||
Remeasurements of defined benefit plans | 501 | (360 | ) | (612 | ) | |||||||||||||||||||
Remeasurements of defined benefit plans | ||||||||||||||||||||||||
Remeasurements of defined benefit plans | ||||||||||||||||||||||||
Remeasurements of defined benefit plans | (160 | ) | (44 | ) | ||||||||||||||||||||
Income tax relating to items that will not be reclassified | (101 | ) | 138 | 92 | ||||||||||||||||||||
Income tax relating to items that will not be reclassified | ||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | ||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | 30 | (5 | ) | |||||||||||||||||||||
Discontinued operations that will not be reclassified2) | ||||||||||||||||||||||||
Discontinued operations that will not be reclassified2) | ||||||||||||||||||||||||
Discontinued operations that will not be reclassified2) | ||||||||||||||||||||||||
Discontinued operations that will not be reclassified2) | 38 | 704 | ||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | 9 | 1,311 | (14,571 | ) | ||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | 9 | 577 | 488 | |||||||||||||||||||||
Insurance finance expenses / (income) | ||||||||||||||||||||||||
Insurance finance expenses / (income) | ||||||||||||||||||||||||
Insurance finance expenses / (income) | ||||||||||||||||||||||||
Insurance finance expenses / (income) | 9 | (1,626 | ) | 18,680 | ||||||||||||||||||||
Reinsurance finance income / (expenses) | ||||||||||||||||||||||||
Reinsurance finance income / (expenses) | ||||||||||||||||||||||||
Reinsurance finance income / (expenses) | ||||||||||||||||||||||||
Reinsurance finance income / (expenses) | 9 | 349 | (4,672 | ) | ||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||
Changes in cash flow hedging reserve | (185 | ) | (241 | ) | ||||||||||||||||||||
Income tax relating to items that may be reclassified | ||||||||||||||||||||||||
Income tax relating to items that may be reclassified | ||||||||||||||||||||||||
Income tax relating to items that may be reclassified | ||||||||||||||||||||||||
Income tax relating to items that may be reclassified | (95 | ) | 108 | |||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Gains / (losses) on revaluation of available-for-sale | (1,173 | ) | 2,990 | 3,477 | ||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | 225 | (1,703 | ) | |||||||||||||||||||||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale | (450 | ) | 13 | (412 | ) | |||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | 129 | 58 | ||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||
Changes in cash flow hedging reserve | (228 | ) | (247 | ) | (8 | ) | (7 | ) | 49 | |||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves | 1,240 | (1,493 | ) | 314 | ||||||||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves | ||||||||||||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves | ||||||||||||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves | (85 | ) | 137 | |||||||||||||||||||||
Equity movements of joint ventures | ||||||||||||||||||||||||
Equity movements of joint ventures | ||||||||||||||||||||||||
Equity movements of joint ventures | ||||||||||||||||||||||||
Equity movements of joint ventures | 25 | 12 | 8 | (2 | ) | (35 | ) | |||||||||||||||||
Equity movements of associates | (6 | ) | 7 | 4 | ||||||||||||||||||||
Equity movements of associates | ||||||||||||||||||||||||
Equity movements of associates | ||||||||||||||||||||||||
Equity movements of associates | (7 | ) | 2 | |||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||
Disposal of group assets | 8 | (8 | ) | (1 | ) | 42 | (9 | ) | 149 | |||||||||||||||
Income tax relating to items that may be reclassified | 372 | (616 | ) | (634 | ) | |||||||||||||||||||
Income tax relating to items that may be reclassified | ||||||||||||||||||||||||
Income tax relating to items that may be reclassified | ||||||||||||||||||||||||
Income tax relating to items that may be reclassified | (72 | ) | 333 | |||||||||||||||||||||
Discontinued operations that may be reclassified | ||||||||||||||||||||||||
Discontinued operations that may be reclassified | ||||||||||||||||||||||||
Discontinued operations that may be reclassified | ||||||||||||||||||||||||
Discontinued operations that may be reclassified | 12 | (344 | ) | |||||||||||||||||||||
Other | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Other | 16 | 1 | 13 | - | 40 | |||||||||||||||||||
Total other comprehensive income / (loss) | 200 | 457 | 2,237 | |||||||||||||||||||||
Total other comprehensive income / (loss) | ||||||||||||||||||||||||
Total other comprehensive income / (loss) | ||||||||||||||||||||||||
Total other comprehensive income / (loss) | 421 | (870 | ) | |||||||||||||||||||||
Total comprehensive income / (loss) | 2,229 | 321 | 3,473 | 222 | (1,410 | ) | ||||||||||||||||||
Total comprehensive income / (loss) attributable to: | ||||||||||||||||||||||||
Total comprehensive income/ (loss) attributable to: | ||||||||||||||||||||||||
Total comprehensive income/ (loss) attributable to: | ||||||||||||||||||||||||
Total comprehensive income/ (loss) attributable to: | ||||||||||||||||||||||||
Total comprehensive income/ (loss) attributable to: | ||||||||||||||||||||||||
Owners of Aegon N.V. | 2,168 | 315 | 3,474 | |||||||||||||||||||||
Owners of Aegon Ltd. | ||||||||||||||||||||||||
Owners of Aegon Ltd. | ||||||||||||||||||||||||
Owners of Aegon Ltd. | ||||||||||||||||||||||||
Owners of Aegon Ltd. | 259 | (1,450 | ) | |||||||||||||||||||||
Non-controlling interests | 61 | 6 | (1 | ) | ||||||||||||||||||||
Non-controlling interests | ||||||||||||||||||||||||
Non-controlling interests | ||||||||||||||||||||||||
Non-controlling interests | (37 | ) | 41 |
1 |
2 | Consists of remeasurement of defined benefit plans |
Consolidated financial statements of Aegon | ||||
Amounts in EUR millions | 2021 | |||
Net result from continuing and discontinued operations | 2,029 | |||
Items that will not be reclassified to profit or loss: | ||||
Changes in revaluation reserve real estate held for own use | (5 | ) | ||
Remeasurements of defined benefit plans | 345 | |||
Income tax relating to items that will not be reclassified | (77 | ) | ||
Discontinued operations that will not be reclassified | 133 | |||
Items that may be reclassified subsequently to profit or loss: | ||||
Gains / (losses) on revaluation of available-for-sale | (1,328 | ) | ||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale | (336 | ) | ||
Changes in cash flow hedging reserve | (228 | ) | ||
Movement in foreign currency translation and net foreign investment hedging reserves | 1,240 | |||
Equity movements of joint ventures | 25 | |||
Equity movements of associates | (5 | ) | ||
Disposal of group assets | 8 | |||
Income tax relating to items that may be reclassified | 390 | |||
Discontinued operations that may be reclassified | 23 | |||
Other | 15 | |||
Total other comprehensive income / (loss) | 200 | |||
Total comprehensive income / (loss) | 2,229 | |||
Total comprehensive income/ (loss) attributable to: | ||||
Owners of Aegon Ltd | 2,168 | |||
Non-controlling interests | 61 |
Annual Report on Form 20-F 2023 | 125 |
![]() | About Aegon Governance and risk management Financial information | |||
Amounts in EUR millions | Note | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||
Amounts in EUR million | Note | 2023 | 2022 1) | January 1, 2022 1) | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | 21 | 6,889 | 8,372 | 12,263 | ||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | 18 | 4,074 | 3,402 | 6,861 | ||||||||||||||||||||||||||||
Assets held for sale / disposal groups | ||||||||||||||||||||||||||||||||
Assets held for sale / disposal groups | ||||||||||||||||||||||||||||||||
Assets held for sale / disposal groups | ||||||||||||||||||||||||||||||||
Assets held for sale / disposal groups | 45 | 432 | 88,664 | - | ||||||||||||||||||||||||||||
Investments | 22 | 157,831 | 156,541 | 145,976 | ||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
Investments | 19 | 266,382 | 254,759 | 409,444 | ||||||||||||||||||||||||||||
Investments for account of policyholders | 23 | 250,953 | 224,172 | 226,374 | ||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Derivatives | 24 | 8,827 | 13,986 | 11,157 | 20 | 1,429 | 2,771 | 8,843 | ||||||||||||||||||||||||
Investments in joint ventures | 25 | 1,743 | 1,376 | 1,983 | ||||||||||||||||||||||||||||
Investments in joint ventures | ||||||||||||||||||||||||||||||||
Investments in joint ventures | ||||||||||||||||||||||||||||||||
Investments in joint ventures | 21 | 1,430 | 1,430 | 1,715 | ||||||||||||||||||||||||||||
Investments in associates | 25 | 1,289 | 1,264 | 363 | ||||||||||||||||||||||||||||
Investments in associates | ||||||||||||||||||||||||||||||||
Investments in associates | ||||||||||||||||||||||||||||||||
Investments in associates | 21 | 2,906 | 165 | 1,289 | ||||||||||||||||||||||||||||
Reinsurance assets | 26 | 20,992 | 18,910 | 20,253 | ||||||||||||||||||||||||||||
Reinsurance contract assets | ||||||||||||||||||||||||||||||||
Reinsurance contract assets | ||||||||||||||||||||||||||||||||
Reinsurance contract assets | ||||||||||||||||||||||||||||||||
Reinsurance contract assets | 29 | 16,608 | 16,939 | 21,322 | ||||||||||||||||||||||||||||
Insurance contract assets | ||||||||||||||||||||||||||||||||
Insurance contract assets | ||||||||||||||||||||||||||||||||
Insurance contract assets | ||||||||||||||||||||||||||||||||
Insurance contract assets | 29 | 185 | 36 | 110 | ||||||||||||||||||||||||||||
Defined benefit assets | 39 | 119 | 43 | 1 | ||||||||||||||||||||||||||||
Defined benefit assets | ||||||||||||||||||||||||||||||||
Defined benefit assets | ||||||||||||||||||||||||||||||||
Defined benefit assets | 33 | 103 | 87 | 119 | ||||||||||||||||||||||||||||
Reimbursement rights | ||||||||||||||||||||||||||||||||
Reimbursement rights | ||||||||||||||||||||||||||||||||
Reimbursement rights | ||||||||||||||||||||||||||||||||
Reimbursement rights | 33 | 20 | - | - | ||||||||||||||||||||||||||||
Deferred tax assets | ||||||||||||||||||||||||||||||||
Deferred tax assets | ||||||||||||||||||||||||||||||||
Deferred tax assets | ||||||||||||||||||||||||||||||||
Deferred tax assets | 40 | 131 | 101 | 193 | 34 | 2,350 | 2,433 | 2,164 | ||||||||||||||||||||||||
Deferred expenses | 27 | 10,503 | 8,799 | 10,806 | ||||||||||||||||||||||||||||
Deferred expenses | ||||||||||||||||||||||||||||||||
Deferred expenses | ||||||||||||||||||||||||||||||||
Deferred expenses | 22 | 447 | 452 | 428 | ||||||||||||||||||||||||||||
Other assets and receivables | ||||||||||||||||||||||||||||||||
Other assets and receivables | ||||||||||||||||||||||||||||||||
Other assets and receivables | ||||||||||||||||||||||||||||||||
Other assets and receivables | 28 | 7,642 | 8,865 | 8,842 | 23 | 4,712 | 9,153 | 6,679 | ||||||||||||||||||||||||
Intangible assets | 29 | 1,333 | 1,386 | 1,559 | ||||||||||||||||||||||||||||
Intangible assets | ||||||||||||||||||||||||||||||||
Intangible assets | ||||||||||||||||||||||||||||||||
Intangible assets | 24 | 504 | 420 | 585 | ||||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||||||||
Total assets | 468,252 | 443,814 | 439,769 | 301,581 | 380,711 | 459,560 | ||||||||||||||||||||||||||
Equity and liabilities | ||||||||||||||||||||||||||||||||
Equity and liabilities | ||||||||||||||||||||||||||||||||
Equity and liabilities | ||||||||||||||||||||||||||||||||
Equity and liabilities | ||||||||||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||||||
Shareholders’ equity | 30 | 23,813 | 22,018 | 21,842 | 25 | 7,475 | 8,815 | 11,018 | ||||||||||||||||||||||||
Other equity instruments | 31 | 2,363 | 2,569 | 2,571 | ||||||||||||||||||||||||||||
Other equity instruments | ||||||||||||||||||||||||||||||||
Other equity instruments | ||||||||||||||||||||||||||||||||
Other equity instruments | 26 | 1,951 | 1,943 | 2,363 | ||||||||||||||||||||||||||||
Issued capital and reserves attributable to owners of Aegon N.V. | 26,176 | 24,586 | 24,413 | |||||||||||||||||||||||||||||
Issued capital and reserves attributable to owners of Aegon Ltd. | ||||||||||||||||||||||||||||||||
Issued capital and reserves attributable to owners of Aegon Ltd. | ||||||||||||||||||||||||||||||||
Issued capital and reserves attributable to owners of Aegon Ltd. | ||||||||||||||||||||||||||||||||
Issued capital and reserves attributable to owners of Aegon Ltd. | 9,426 | 10,758 | 13,381 | |||||||||||||||||||||||||||||
Non-controlling interests | 196 | 75 | 20 | |||||||||||||||||||||||||||||
Non-controlling interests | ||||||||||||||||||||||||||||||||
Non-controlling interests | ||||||||||||||||||||||||||||||||
Non-controlling interests | 129 | 176 | 196 | |||||||||||||||||||||||||||||
Group equity | 26,372 | 24,661 | 24,433 | 9,554 | 10,935 | 13,577 | ||||||||||||||||||||||||||
Subordinated borrowings | 32 | 2,194 | 2,085 | 2,207 | ||||||||||||||||||||||||||||
Subordinated borrowings | ||||||||||||||||||||||||||||||||
Subordinated borrowings | ||||||||||||||||||||||||||||||||
Subordinated borrowings | 27 | 2,244 | 2,295 | 2,194 | ||||||||||||||||||||||||||||
Trust pass-through securities | 33 | 126 | 126 | 136 | ||||||||||||||||||||||||||||
Trust pass-through securities | ||||||||||||||||||||||||||||||||
Trust pass-through securities | ||||||||||||||||||||||||||||||||
Trust pass-through securities | 28 | 111 | 118 | 126 | ||||||||||||||||||||||||||||
Insurance contracts | 34 | 124,422 | 122,146 | 122,885 | ||||||||||||||||||||||||||||
Reinsurance contract liabilities | ||||||||||||||||||||||||||||||||
Reinsurance contract liabilities | ||||||||||||||||||||||||||||||||
Reinsurance contract liabilities | ||||||||||||||||||||||||||||||||
Reinsurance contract liabilities | 29 | 608 | 270 | 471 | ||||||||||||||||||||||||||||
Insurance contracts for account of policyholders | 34 | 149,323 | 135,441 | 135,710 | ||||||||||||||||||||||||||||
Insurance contract liabilities | ||||||||||||||||||||||||||||||||
Insurance contract liabilities | ||||||||||||||||||||||||||||||||
Insurance contract liabilities | ||||||||||||||||||||||||||||||||
Insurance contract liabilities | 29 | 177,446 | 176,120 | 290,066 | ||||||||||||||||||||||||||||
Investment contracts | 35 | 21,767 | 21,075 | 18,594 | ||||||||||||||||||||||||||||
Investment contract liabilities with discretionary participating features | ||||||||||||||||||||||||||||||||
Investment contract liabilities with discretionary participating features | ||||||||||||||||||||||||||||||||
Investment contract liabilities with discretionary participating features | ||||||||||||||||||||||||||||||||
Investment contract liabilities with discretionary participating features | 29 | 21,594 | 21,055 | 27,392 | ||||||||||||||||||||||||||||
Investment contracts for account of policyholders | 35 | 104,592 | 91,624 | 93,826 | ||||||||||||||||||||||||||||
Investment contracts without discretionary participating features | ||||||||||||||||||||||||||||||||
Investment contracts without discretionary participating features | ||||||||||||||||||||||||||||||||
Investment contracts without discretionary participating features | ||||||||||||||||||||||||||||||||
Investment contracts without discretionary participating features | 30 | 75,266 | 65,227 | 92,364 | ||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Derivatives | 24 | 10,639 | 14,617 | 11,616 | 20 | 2,479 | 5,175 | 7,138 | ||||||||||||||||||||||||
Borrowings | 37 | 9,661 | 8,524 | 9,307 | ||||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||
Borrowings | 31 | 2,356 | 4,051 | 9,661 | ||||||||||||||||||||||||||||
Provisions | ||||||||||||||||||||||||||||||||
Provisions | ||||||||||||||||||||||||||||||||
Provisions | ||||||||||||||||||||||||||||||||
Provisions | 38 | 193 | 309 | 214 | 32 | 83 | 100 | 193 | ||||||||||||||||||||||||
Defined benefit liabilities | 39 | 3,944 | 4,636 | 4,360 | ||||||||||||||||||||||||||||
Defined benefit liabilities | ||||||||||||||||||||||||||||||||
Defined benefit liabilities | ||||||||||||||||||||||||||||||||
Defined benefit liabilities | 33 | 669 | 496 | 3,944 | ||||||||||||||||||||||||||||
Deferred gains | ||||||||||||||||||||||||||||||||
Deferred gains | ||||||||||||||||||||||||||||||||
Deferred gains | ||||||||||||||||||||||||||||||||
Deferred gains | 9 | 10 | 11 | 6 | 7 | 7 | ||||||||||||||||||||||||||
Deferred tax liabilities | 40 | 1,559 | 1,424 | 1,229 | ||||||||||||||||||||||||||||
Deferred tax liabilities | ||||||||||||||||||||||||||||||||
Deferred tax liabilities | ||||||||||||||||||||||||||||||||
Deferred tax liabilities | 34 | 57 | 30 | 8 | ||||||||||||||||||||||||||||
Liabilities held for sale / disposal groups | ||||||||||||||||||||||||||||||||
Liabilities held for sale / disposal groups | ||||||||||||||||||||||||||||||||
Liabilities held for sale / disposal groups | ||||||||||||||||||||||||||||||||
Liabilities held for sale / disposal groups | 45 | 389 | 84,183 | - | ||||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||
Other liabilities | 41 | 12,916 | 16,685 | 14,816 | 35 | 8,390 | 10,278 | 11,883 | ||||||||||||||||||||||||
Accruals | 42 | 537 | 451 | 426 | ||||||||||||||||||||||||||||
Accruals | ||||||||||||||||||||||||||||||||
Accruals | ||||||||||||||||||||||||||||||||
Accruals | 36 | 328 | 372 | 537 | ||||||||||||||||||||||||||||
Total liabilities | 441,881 | 419,153 | 415,336 | |||||||||||||||||||||||||||||
Total liabilities | ||||||||||||||||||||||||||||||||
Total liabilities | ||||||||||||||||||||||||||||||||
Total liabilities | 292,026 | 369,777 | 445,983 | |||||||||||||||||||||||||||||
Total equity and liabilities | 468,252 | 443,814 | 439,769 | |||||||||||||||||||||||||||||
Total equity and liabilities | ||||||||||||||||||||||||||||||||
Total equity and liabilities | ||||||||||||||||||||||||||||||||
Total equity and liabilities | 301,581 | 380,711 | 459,560 |
1 | Comparatives have been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 includes further details on the changes in accounting policies. |
Consolidated financial statements of Aegon Ltd. | ||||
Amounts in EUR millions | Note | Share capital | Retained earnings | Revaluation reserves | Remea- surement of defined benefit plans | Other reserves | Other equity instru- ments | Issued capital and reserves 1) | Non- control- ling interests | Total | Note | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At January 1, 2021 | 7,480 | 10,145 | 7,480 | (2,534 | ) | (553 | ) | 2,569 | 24,586 | 75 | 24,661 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 2) | 7,172 | 7,103 | (4,532 | ) | (890 | ) | 653 | 1,943 | (691 | ) | 10,758 | 176 | 10,935 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net result recognized in the income statement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net result recognized in the income statement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net result recognized in the income statement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net result recognized in the income statement | - | 1,980 | - | - | - | - | 1,980 | 50 | 2,029 | - | (179 | ) | - | - | - | - | - | (179 | ) | (20 | ) | (199 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | - | (4 | ) | - | - | - | (4 | ) | - | (4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | - | (2 | ) | - | - | - | - | (2 | ) | - | (2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | - | - | - | 501 | - | - | 501 | - | 501 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | - | - | - | (160 | ) | - | - | - | (160 | ) | - | (160 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | - | (634 | ) | - | - | - | - | 634 | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | - | - | 1 | (102 | ) | - | - | (101 | ) | - | (101 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | - | - | - | 30 | - | - | - | 30 | - | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued operations that will not be reclassified 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued operations that will not be reclassified 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued operations that will not be reclassified 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued operations that will not be reclassified 3) | - | - | - | - | - | - | 38 | 38 | - | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | - | - | 1,311 | - | - | - | - | 1,311 | - | 1,311 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | - | - | 577 | - | - | - | - | 577 | - | 577 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance finance expenses / (income) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance finance expenses / (income) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance finance expenses / (income) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance finance expenses / (income) | - | - | (1,626 | ) | - | - | - | - | (1,626 | ) | - | (1,626 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance finance income / (expenses) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance finance income / (expenses) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance finance income / (expenses) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance finance income / (expenses) | - | - | 349 | - | - | - | - | 349 | - | 349 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | (185 | ) | - | - | - | - | (185 | ) | - | (185 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | (95 | ) | - | - | - | - | (95 | ) | - | (95 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on revaluation of available-for-sale | - | - | (1,173 | ) | - | - | - | (1,173 | ) | - | (1,173 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | - | - | 225 | - | - | - | - | 225 | - | 225 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments | - | - | (450 | ) | - | - | - | (450 | ) | - | (450 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | - | - | 129 | - | - | - | - | 129 | - | 129 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | (228 | ) | - | - | - | (228 | ) | - | (228 | ) | - | - | (7 | ) | - | - | - | - | (7 | ) | - | (7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves | - | - | 447 | (65 | ) | 848 | - | 1,231 | 9 | 1,240 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves | - | - | 142 | 14 | (236 | ) | - | - | (80 | ) | (5 | ) | (85 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity movements of joint ventures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity movements of joint ventures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity movements of joint ventures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity movements of joint ventures | - | - | - | - | 25 | - | 25 | - | 25 | - | - | - | - | (2 | ) | - | - | (2 | ) | - | (2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity movements of associates | - | - | - | - | (6 | ) | - | (6 | ) | - | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity movements of associates | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity movements of associates | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity movements of associates | - | - | - | - | (7 | ) | - | - | (7 | ) | - | (7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | - | - | - | - | 8 | - | 8 | - | 8 | - | 9 | 20 | - | (32 | ) | - | 7 | 4 | (12 | ) | (9 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | 369 | - | 3 | - | 372 | - | 372 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | (75 | ) | - | 3 | - | - | (72 | ) | - | (72 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued operations that may be reclassified 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued operations that may be reclassified 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued operations that may be reclassified 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued operations that may be reclassified 3) | - | - | - | - | - | - | 12 | 12 | - | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | - | 14 | - | - | - | - | 14 | 3 | 16 | - | - | - | - | - | - | - | - | 1 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) | - | 14 | (1,038 | ) | 335 | 878 | - | 188 | 11 | 200 | - | (625 | ) | 762 | (116 | ) | (274 | ) | - | 691 | 438 | (17 | ) | 421 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2023 | - | (804 | ) | 762 | (116 | ) | (274 | ) | - | 691 | 259 | (37 | ) | 222 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2021 | 0 | 1,993 | (1,038 | ) | 335 | 878 | 0 | 2,168 | 61 | 2,229 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued | 1 | - | - | - | - | - | 1 | - | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withdrawn | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withdrawn | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withdrawn | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withdrawn | (54 | ) | 54 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | (88 | ) | - | - | - | - | (88 | ) | - | (88 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | (1,052 | ) | - | - | - | - | - | (1,052 | ) | - | (1,052 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance and redemption of other equity instruments | - | - | - | - | - | (212 | ) | (212 | ) | - | (212 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid on common shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid on common shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid on common shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid on common shares | (127 | ) | (120 | ) | - | - | - | - | (247 | ) | (1 | ) | (248 | ) | - | (495 | ) | - | - | - | - | - | (495 | ) | - | (495 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coupons on perpetual securities | - | (39 | ) | - | - | - | - | (39 | ) | - | (39 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coupons on perpetual securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coupons on perpetual securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coupons on perpetual securities | - | (48 | ) | - | - | - | - | - | (48 | ) | - | (48 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive plans | - | - | - | - | - | 6 | 7 | - | 7 | - | (5 | ) | - | - | - | 8 | - | 3 | - | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in ownership non-controlling interest | - | - | - | - | - | - | - | 61 | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in ownership non-controlling interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in ownership non-controlling interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in ownership non-controlling interest | - | - | - | - | - | - | - | - | (11 | ) | (11 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2021 | 30,31 | 7,354 | 11,892 | 6,442 | (2,199 | ) | 325 | 2,363 | 26,176 | 196 | 26,372 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31, 2023 | 25,26 | 7,118 | 4,753 | (3,770 | ) | (1,006 | ) | 379 | 1,951 | - | 9,426 | 129 | 9,554 |
1 | Issued capital and reserves attributable to owners of Aegon |
2 | Opening balance as per January 1, 2023 has been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 includes further details on the changes in accounting policies. |
3 | The lines “Discontinued operations that will not be reclassified” and “Discontinued operations that may be reclassified” include EUR 675 million and EUR 16 million respectively of reclassifications from opening reserves to the column “Reserve of discontinued operations held for sale”. |
Annual Report on Form 20-F 2023 | 127 |
![]() | About Aegon Governance and risk management | |||
Amounts in EUR millions | Note | Share capital | Retained earnings | Revaluation reserves | Remea- surement of defined benefit plans | Other reserves | Other equity instru- ments | Issued capital and reserves 1) | Non- controlling interests 2) | Total | ||||||||||||||||||||||||||||||
At January 1, 2020 | 7,536 | 10,374 | 5,873 | (2,397 | ) | 456 | 2,571 | 24,413 | 20 | 24,433 | ||||||||||||||||||||||||||||||
Net result recognized in the income statement | - | (146 | ) | - | - | - | - | (146 | ) | 11 | (135 | ) | ||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | - | 20 | - | - | - | 20 | - | 20 | |||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | - | - | - | (360 | ) | - | - | (360 | ) | - | (360 | ) | ||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | - | - | (2 | ) | 140 | - | - | 138 | - | 138 | ||||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on revaluation of available-for-sale | - | - | 2,990 | - | - | - | 2,990 | - | 2,990 | |||||||||||||||||||||||||||||||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments | - | - | 13 | - | - | - | 13 | - | 13 | |||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | (247 | ) | - | - | - | (247 | ) | - | (247 | ) | ||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves | - | - | (556 | ) | 83 | (1,015 | ) | - | (1,489 | ) | (4 | ) | (1,493 | ) | ||||||||||||||||||||||||||
Equity movements of joint ventures | - | - | - | - | 12 | - | 12 | - | 12 | |||||||||||||||||||||||||||||||
Equity movements of associates | - | - | - | - | 7 | - | 7 | - | 7 | |||||||||||||||||||||||||||||||
Disposal of group assets | - | - | 0 | - | (7 | ) | - | (8 | ) | - | (8 | ) | ||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | (610 | ) | - | (7 | ) | - | (616 | ) | - | (616 | ) | |||||||||||||||||||||||||||
Other | - | 2 | - | - | 1 | - | 3 | 0 | 1 | |||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) | - | 2 | 1,607 | (137 | ) | (1,009 | ) | - | 462 | (4 | ) | 457 | ||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2020 | - | (144 | ) | 1,607 | (137 | ) | (1,009 | ) | - | 316 | 6 | 321 | ||||||||||||||||||||||||||||
Shares issued | (3 | ) | 3 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | 3 | - | - | - | - | 3 | - | 3 | |||||||||||||||||||||||||||||||
Issuance and redemption of other equity instruments | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Dividends paid on common shares | (54 | ) | (64 | ) | - | - | - | - | (118 | ) | - | (118 | ) | |||||||||||||||||||||||||||
Dividend withholding tax reduction | - | 1 | - | - | - | - | 1 | - | 1 | |||||||||||||||||||||||||||||||
Coupons on perpetual securities | - | (38 | ) | - | - | - | - | (38 | ) | - | (38 | ) | ||||||||||||||||||||||||||||
Incentive plans | - | 10 | - | - | - | (3 | ) | 8 | - | 8 | ||||||||||||||||||||||||||||||
Change in ownership non-controlling interest | - | - | - | - | - | - | - | 48 | 48 | |||||||||||||||||||||||||||||||
At December 31, 2020 | 30,31 | 7,480 | 10,145 | 7,480 | (2,534 | ) | (553 | ) | 2,569 | 24,586 | 75 | 24,661 |
Amounts in EUR millions | Note | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||||||||
Opening balance IAS 39 / IFRS 4 on January 1, 2022 2) | 7,354 | 11,892 | 6,442 | (2,199 | ) | 325 | 2,363 | - | 26,176 | 196 | 26,372 | |||||||||||||||||||||||||||||||||
IFRS 9/17 opening balance impacts | - | 3,707 | (9,021 | ) | - | (67 | ) | - | - | (12,795 | ) | - | (12,795 | ) | ||||||||||||||||||||||||||||||
Restated opening balance on January 1, 2022 | 7,354 | 8,185 | (2,580 | ) | (2,199 | ) | 258 | 2,363 | - | 13,381 | 196 | 13,577 | ||||||||||||||||||||||||||||||||
Net result recognized in the income statement | - | (569 | ) | - | - | - | - | - | (569 | ) | 29 | (540 | ) | |||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||||||||||||||||||||||
Gains/ (losses) on investments in equity instruments (FVOCI) | - | - | (1 | ) | - | - | - | - | (1 | ) | - | (1 | ) | |||||||||||||||||||||||||||||||
Change in fair value attributable to change in the credit risk of financial liability (FVPL) | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | 16 | (17 | ) | - | - | - | - | (1 | ) | - | (1 | ) | |||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | - | - | - | (44 | ) | - | - | - | (44 | ) | - | (44 | ) | |||||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | - | - | - | (5 | ) | - | - | - | (5 | ) | - | (5 | ) | |||||||||||||||||||||||||||||||
Discontinued operations that will not be reclassified 3) | - | - | - | 1,379 | - | - | (675 | ) | 704 | - | 704 | |||||||||||||||||||||||||||||||||
Insurance items that may be reclassified subsequently to profit or loss | ||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | - | - | (14,571 | ) | - | - | - | - | (14,571 | ) | - | (14,571 | ) | |||||||||||||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | - | - | 488 | - | - | - | - | 488 | - | 488 | ||||||||||||||||||||||||||||||||||
Insurance finance expenses / (income) | - | - | 18,680 | - | - | - | - | 18,680 | - | 18,680 | ||||||||||||||||||||||||||||||||||
Reinsurance finance income / (expenses) | - | - | (4,672 | ) | - | - | - | - | (4,672 | ) | - | (4,672 | ) | |||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | (241 | ) | - | - | - | - | (241 | ) | - | (241 | ) | |||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | 108 | - | - | - | - | 108 | - | 108 | ||||||||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | - | - | (1,703 | ) | - | - | - | - | (1,703 | ) | - | (1,703 | ) | |||||||||||||||||||||||||||||||
Gains / (losses) on disposal of financial assets measured at FVOCI | - | - | 58 | - | - | - | - | 58 | - | 58 | ||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | 49 | - | - | - | - | 49 | - | 49 | ||||||||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves | - | - | (174 | ) | (20 | ) | 320 | - | - | 125 | 12 | 137 | ||||||||||||||||||||||||||||||||
Equity movements of joint ventures | - | - | - | - | (35 | ) | - | - | (35 | ) | - | (35 | ) | |||||||||||||||||||||||||||||||
Equity movements of associates | - | - | - | - | 2 | - | - | 2 | - | 2 | ||||||||||||||||||||||||||||||||||
Disposal of group assets | - | - | 14 | - | 135 | - | - | 149 | - | 149 | ||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | 345 | - | (12 | ) | - | - | 333 | - | 333 | |||||||||||||||||||||||||||||||||
Discontinued operations that may be reclassified 3) | - | - | (315 | ) | - | (14 | ) | - | (16 | ) | (344 | ) | - | (344 | ) | |||||||||||||||||||||||||||||
Other | - | 40 | - | - | - | - | - | 40 | (0 | ) | 40 | |||||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) | - | 57 | (1,952 | ) | 1,310 | 395 | - | (691 | ) | (881 | ) | 12 | (870 | ) | ||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2022 | - | (512 | ) | (1,952 | ) | 1,310 | 395 | - | (691 | ) | (1,450 | ) | 41 | (1,410 | ) | |||||||||||||||||||||||||||||
Shares issued | 2 | - | - | - | - | - | - | 2 | - | 2 | ||||||||||||||||||||||||||||||||||
Shares withdrawn | (4 | ) | - | - | - | - | - | - | (4 | ) | - | (4 | ) | |||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | (393 | ) | - | - | - | - | - | (393 | ) | - | (393 | ) | |||||||||||||||||||||||||||||||
Redemption other equity instruments | - | 31 | - | - | - | (429 | ) | - | (398 | ) | - | (398 | ) | |||||||||||||||||||||||||||||||
Dividends paid on common shares | (180 | ) | (167 | ) | - | - | - | - | - | (346 | ) | - | (346 | ) | ||||||||||||||||||||||||||||||
Coupons on perpetual securities | - | (36 | ) | - | - | - | - | - | (36 | ) | - | (36 | ) | |||||||||||||||||||||||||||||||
Coupons on non-cumulative subordinated notes | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Incentive plans | - | (5 | ) | - | - | - | 10 | - | 4 | - | 4 | |||||||||||||||||||||||||||||||||
Change in ownership non-controlling interest | - | - | - | - | - | - | - | - | (61 | ) | (61 | ) | ||||||||||||||||||||||||||||||||
On December 31, 2022 | 25,26 | 7,172 | 7,103 | (4,532 | ) | (890 | ) | 653 | 1,943 | (691 | ) | 10,758 | 176 | 10,935 |
1 | Issued capital and reserves attributable to owners of Aegon |
2 |
3 | The lines “Discontinued operations that will not be reclassified” and “Discontinued operations that may be reclassified” include EUR 1,379 million and EUR (329) million respectively of reclassifications from opening reserves to the column “Reserve of discontinued operations held for sale”. |
Consolidated financial statements of Aegon Ltd. | ||||
Amounts in EUR millions | Note | Share capital | Retained earnings | Revalua- tion reserves | Remea- surement of defined benefit plans | Other reserves | Other equity instru- ments | Issued capital and reserves 1) | Non-controlling interests | Total | ||||||||||||||||||||||||||||||
At January 1, 2019 (as previously stated) | 7,808 | 9,648 | 3,435 | (1,850 | ) | 149 | 3,320 | 22,510 | 22 | 22,531 | ||||||||||||||||||||||||||||||
Voluntary change in accounting policy | 2.1.2 | - | (44 | ) | - | - | - | - | (44 | ) | - | (44 | ) | |||||||||||||||||||||||||||
At January 1, 2019 | 7,808 | 9,604 | 3,435 | (1,850 | ) | 149 | 3,320 | 22,466 | 22 | 22,487 | ||||||||||||||||||||||||||||||
Net result recognized in the income statement | - | 1,235 | - | - | - | - | 1,235 | - | 1,236 | |||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | 32 | (36 | ) | - | - | - | (4 | ) | - | (4 | ) | ||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | - | - | - | (612 | ) | - | - | (612 | ) | - | (612 | ) | ||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | - | (7 | ) | 8 | 90 | - | - | 92 | - | 92 | ||||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on revaluation of available-for-sale | - | - | 3,477 | - | - | - | 3,477 | - | 3,477 | |||||||||||||||||||||||||||||||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments | - | - | (412 | ) | - | - | - | (412 | ) | - | (412 | ) | ||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | (8 | ) | - | - | - | (8 | ) | - | (8 | ) | ||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves | - | - | 37 | (25 | ) | 302 | - | 314 | - | 314 | ||||||||||||||||||||||||||||||
Equity movements of joint ventures | - | - | - | - | 8 | - | 8 | - | 8 | |||||||||||||||||||||||||||||||
Equity movements of associates | - | - | - | - | 4 | - | 4 | - | 4 | |||||||||||||||||||||||||||||||
Disposal of group assets | - | - | - | - | (1 | ) | - | (1 | ) | - | (1 | ) | ||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | (629 | ) | - | (5 | ) | - | (634 | ) | - | (634 | ) | |||||||||||||||||||||||||||
Other | - | 15 | - | - | - | - | 15 | (2 | ) | 13 | ||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) | - | 40 | 2,438 | (547 | ) | 307 | - | 2,239 | (2 | ) | 2,237 | |||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2019 | - | 1,276 | 2,438 | (547 | ) | 307 | - | 3,474 | (1 | ) | 3,473 | |||||||||||||||||||||||||||||
Shares issued | 1 | - | - | - | - | - | 1 | - | 1 | |||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | (30 | ) | - | - | - | - | (30 | ) | - | (30 | ) | ||||||||||||||||||||||||||||
Issuance and redemption of other equity instruments | - | (81 | ) | - | - | - | (744 | ) | (825 | ) | - | (825 | ) | |||||||||||||||||||||||||||
Dividends paid on common shares | (273 | ) | (309 | ) | - | - | - | - | (583 | ) | - | (583 | ) | |||||||||||||||||||||||||||
Dividend withholding tax reduction | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Coupons on perpetual securities | - | (88 | ) | - | - | - | - | (88 | ) | - | (88 | ) | ||||||||||||||||||||||||||||
Incentive plans | - | 2 | - | - | - | (5 | )�� | (3 | ) | - | (3 | ) | ||||||||||||||||||||||||||||
At December 31, 2019 | 30,31 | 7,536 | 10,374 | 5,873 | (2,397 | ) | 456 | 2,571 | 24,413 | 20 | 24,433 |
Amounts in EUR millions | Note | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||||||||
At January 1, 2021 | 7,480 | 10,145 | 7,480 | (2,534 | ) | (553 | ) | 2,569 | 24,586 | 75 | 24,661 | |||||||||||||||||||||||||||||
Net result recognized in the income statement | - | 1,980 | - | - | - | - | 1,980 | 50 | 2,029 | |||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | - | (4 | ) | - | - | - | (4 | ) | - | (4 | ) | ||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | - | - | - | 501 | - | - | 501 | - | 501 | |||||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified | - | - | 1 | (102 | ) | - | - | (101 | ) | - | (101 | ) | ||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on revaluation of available-for-sale investments | - | - | (1,173 | ) | - | - | - | (1,173 | ) | - | (1,173 | ) | ||||||||||||||||||||||||||||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments | - | - | (450 | ) | - | - | - | (450 | ) | - | (450 | ) | ||||||||||||||||||||||||||||
Changes in cash flow hedging reserve | - | - | (228 | ) | - | - | - | (228 | ) | - | (228 | ) | ||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves | - | - | 447 | (65 | ) | 848 | - | 1,231 | 9 | 1,240 | ||||||||||||||||||||||||||||||
Equity movements of joint ventures | - | - | - | - | 25 | - | 25 | - | 25 | |||||||||||||||||||||||||||||||
Equity movements of associates | - | - | - | - | (6 | ) | - | (6 | ) | - | (6 | ) | ||||||||||||||||||||||||||||
Disposal of group assets | - | - | - | - | 8 | - | 8 | - | 8 | |||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified | - | - | 369 | - | 3 | - | 372 | - | 372 | |||||||||||||||||||||||||||||||
Other | - | 14 | - | - | - | - | 14 | 3 | 16 | |||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) | - | 14 | (1,038 | ) | 335 | 878 | - | 188 | 11 | 200 | ||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2021 | - | 1,993 | (1,038 | ) | 335 | 878 | - | 2,168 | 61 | 2,229 | ||||||||||||||||||||||||||||||
Shares issued | 1 | - | - | - | - | - | 1 | - | 1 | |||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | (88 | ) | - | - | - | - | (88 | ) | - | (88 | ) | ||||||||||||||||||||||||||||
Issuance and redemption of other equity instruments | - | - | - | - | - | (212 | ) | (212 | ) | - | (212 | ) | ||||||||||||||||||||||||||||
Dividends paid on common shares | (127 | ) | (120 | ) | - | - | - | - | (247 | ) | (1 | ) | (248 | ) | ||||||||||||||||||||||||||
Dividend withholding tax reduction | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Coupons on perpetual securities | - | (39 | ) | - | - | - | - | (39 | ) | - | (39 | ) | ||||||||||||||||||||||||||||
Incentive plans | - | - | - | - | - | 6 | 7 | - | 7 | |||||||||||||||||||||||||||||||
Change in ownership non-controlling interest | - | - | - | - | - | - | - | 61 | 61 | |||||||||||||||||||||||||||||||
At December 31, 2021 | 46.20 | 7,354 | 11,892 | 6,442 | (2,199 | ) | 325 | 2,363 | 26,176 | 196 | 26,372 |
1 | Issued capital and reserves attributable to owners of Aegon |
Annual Report on Form 20-F 2023 | 129 |
![]() | About Aegon Governance and risk management | |||
Amounts in EUR millions | Note | 2021 | 2020 | 2019 | ||||||||||||
Result before tax | 2,400 | (364 | ) | 1,453 | ||||||||||||
Results from financial transactions | (25,716 | ) | (22,092 | ) | (35,933 | ) | ||||||||||
Amortization and depreciation | 1,167 | 722 | 1,184 | |||||||||||||
Impairment losses | 5 | 382 | 160 | |||||||||||||
Income from joint ventures | (265 | ) | (184 | ) | (214 | ) | ||||||||||
Income from associates | (112 | ) | (111 | ) | (12 | ) | ||||||||||
Release of cash flow hedging reserve | (106 | ) | (109 | ) | (97 | ) | ||||||||||
Other | 248 | 9 | 26 | |||||||||||||
Adjustments of non-cash items | (24,778 | ) | (21,383 | ) | (34,886 | ) | ||||||||||
Insurance and investment liabilities | (1,885 | ) | 6,975 | 3,755 | ||||||||||||
Insurance and investment liabilities for account of policyholders | 13,605 | 11,005 | 26,512 | |||||||||||||
Accrued expenses and other liabilities | (1,008 | ) | 655 | 352 | ||||||||||||
Accrued income and prepayments | (543 | ) | (1,315 | ) | (1,057 | ) | ||||||||||
Changes in accruals | 10,169 | 17,319 | 29,562 | |||||||||||||
Purchase of investments (other than money market investments) | (35,520 | ) | (44,637 | ) | (40,014 | ) | ||||||||||
Purchase of derivatives | (1,611 | ) | 924 | (214 | ) | |||||||||||
Disposal of investments (other than money market investments) | 38,040 | 31,875 | 40,187 | |||||||||||||
Disposal of derivatives | 310 | 1,771 | 2,880 | |||||||||||||
Net purchase of investments for account of policyholders | 12,063 | 8,865 | 7,605 | |||||||||||||
Net change in cash collateral | (2,805 | ) | 2,425 | (332 | ) | |||||||||||
Net purchase of money market investments | (85 | ) | 363 | 1,089 | ||||||||||||
Cash flow movements on operating items not reflected in income | 10,391 | 1,585 | 11,200 | |||||||||||||
Tax (paid)/ received | 21 | (7 | ) | (18 | ) | |||||||||||
Other | 0 | (5 | ) | (9 | ) | |||||||||||
Net cash flows from operating activities | 21 | (1,796 | ) | (2,854 | ) | 7,302 | ||||||||||
Purchase of individual intangible assets (other than VOBA and future servicing rights) | (36 | ) | (40 | ) | (46 | ) | ||||||||||
Purchase of equipment and real estate for own use | (76 | ) | (80 | ) | (102 | ) | ||||||||||
Acquisition of subsidiaries, net of cash | 0 | (15 | ) | (1 | ) | |||||||||||
Acquisition/capital contributions joint ventures and associates | (97 | ) | (305 | ) | (269 | ) | ||||||||||
Disposal of intangible asset | 0 | 3 | 1 | |||||||||||||
Disposal of equipment | 2 | 7 | 63 | |||||||||||||
Disposal of subsidiaries and businesses, net of cash | 59 | - | 137 | |||||||||||||
Disposal joint ventures and associates | 0 | 154 | 1 | |||||||||||||
Dividend received from joint ventures and associates | 95 | 138 | 130 | |||||||||||||
Net cash flows from investing activities | 21 | (54 | ) | (139 | ) | (86 | ) | |||||||||
Issuance of treasury shares | 0 | - | 1 | |||||||||||||
Issuance of perpetuals | 0 | - | 496 | |||||||||||||
Purchase of treasury shares | (231 | ) | (59 | ) | (318 | ) | ||||||||||
Proceeds from TRUPS 1) , Subordinated borrowings and borrowings | 3,914 | 3,444 | 4,923 | |||||||||||||
Repayment of perpetuals | (212 | ) | - | (1,343 | ) | |||||||||||
Repayment of TRUPS 1) , Subordinated borrowings and borrowings | (3,000 | ) | (3,985 | ) | (7,014 | ) | ||||||||||
Dividends paid | (121 | ) | (63 | ) | (309 | ) | ||||||||||
Coupons on perpetual securities | (52 | ) | (55 | ) | (112 | ) | ||||||||||
Payment of Right-of-use | (59 | ) | (60 | ) | (54 | ) | ||||||||||
Change in ownership non-controlling interests | 61 | - | - | |||||||||||||
Net cash flows from financing activities | 21 | 300 | (778 | ) | (3,730 | ) | ||||||||||
Net increase / (decrease) in cash and cash equivalents 2) | (1,550 | ) | (3,770 | ) | 3,486 | |||||||||||
Net cash and cash equivalents at the beginning of the year | 8,372 | 12,263 | 8,744 | |||||||||||||
Effects of changes in exchange rate | 67 | (121 | ) | 33 | ||||||||||||
Net cash and cash equivalents at the end of the year | 21 | 6,889 | 8,372 | 12,263 |
Amounts in EUR millions | Note | 2023 | 2022 1) | 2021 1) | ||||||||||||
Result before tax from continuing operations | (391 | ) | 827 | 1,164 | ||||||||||||
Result before tax from discontinued operations | 45 | 458 | 242 | 1,237 | ||||||||||||
Impairment loss on measurement of disposal group | 45 | (413 | ) | (1,094 | ) | - | ||||||||||
Result before tax from continuing operations and discontinued operations | (346 | ) | (25 | ) | 2,400 | |||||||||||
Results from financial transactions | (20,540 | ) | 60,321 | (25,716 | ) | |||||||||||
Amortization and depreciation | (163 | ) | 169 | 1,167 | ||||||||||||
Impairment losses | 116 | 115 | 5 | |||||||||||||
Results from (re)insurance contracts and investment contracts with discretionary participating features | 17,673 | (43,253 | ) | n.a. | ||||||||||||
Income from joint ventures | (200 | ) | (289 | ) | (265 | ) | ||||||||||
Income from associates | (118 | ) | (4 | ) | (112 | ) | ||||||||||
Release of cash flow hedging reserve | (130 | ) | (126 | ) | (106 | ) | ||||||||||
Other | 892 | 479 | 248 | |||||||||||||
Adjustments of non-cash items | (2,469 | ) | 17,412 | (24,778 | ) | |||||||||||
Investment contracts without discretionary participating features | 9,742 | (14,142 | ) | n.a. | ||||||||||||
Insurance and investment liabilities | n.a. | n.a. | (1,885 | ) | ||||||||||||
Insurance and investment liabilities for account of policyholders | n.a. | n.a. | 13,605 | |||||||||||||
Accrued expenses and other liabilities | (442 | ) | (752 | ) | (1,008 | ) | ||||||||||
Accrued income and prepayments | 1,325 | (997 | ) | (543 | ) | |||||||||||
Changes in accruals | 10,626 | (15,891 | ) | 10,169 | ||||||||||||
Insurance contracts | (11,770 | ) | (12,163 | ) | n.a. | |||||||||||
Investment contracts with discretionary participating features | (2,030 | ) | (1,797 | ) | n.a. | |||||||||||
Reinsurance contracts held | 923 | 1,491 | n.a. | |||||||||||||
Purchase of investments (other than money market investments) | (43,445 | ) | (64,243 | ) | (35,520 | ) | ||||||||||
Purchase of derivatives | (1,011 | ) | (4,140 | ) | (1,611 | ) | ||||||||||
Disposal of investments (other than money market investments) | 52,576 | 87,910 | 38,040 | |||||||||||||
Disposal of derivatives | (1,612 | ) | (2,306 | ) | 310 | |||||||||||
Net purchase of investments for account of policyholders | n.a. | n.a. | 12,063 | |||||||||||||
Net change in cash collateral | 1,592 | (3,207 | ) | (2,805 | ) | |||||||||||
Net purchase of money market investments | (1,853 | ) | (340 | ) | (85 | ) | ||||||||||
Cash flow movements on operating items not reflected in income | (6,631 | ) | 1,206 | 10,391 | ||||||||||||
Tax (paid)/ received | (321 | ) | (38 | ) | 21 | |||||||||||
Other | 4 | 6 | - | |||||||||||||
Net cash flows from operating activities | 18 | 864 | 2,672 | (1,796 | ) | |||||||||||
Purchase of individual intangible assets (other than future servicing rights) | (51 | ) | (26 | ) | (36 | ) | ||||||||||
Purchase of equipment and real estate for own use | (65 | ) | (72 | ) | (76 | ) | ||||||||||
Acquisition of subsidiaries, net of cash | (34 | ) | (29 | ) | - | |||||||||||
Acquisition/capital contributions joint ventures and associates | (253 | ) | (73 | ) | (97 | ) | ||||||||||
Disposal of intangible asset | 3 | - | - | |||||||||||||
Disposal of equipment | 46 | 9 | 2 | |||||||||||||
Disposal of subsidiaries and businesses, net of cash | (1,964 | ) | 604 | 59 | ||||||||||||
Disposal joint ventures and associates | 12 | 185 | - | |||||||||||||
Dividend received from joint ventures and associates | 310 | 137 | 95 | |||||||||||||
Other | - | (1 | ) | - | ||||||||||||
Net cash flows from investing activities | 18 | (1,996 | ) | 733 | (54 | ) | ||||||||||
Purchase of treasury shares | (1,072 | ) | (597 | ) | (231 | ) | ||||||||||
Proceeds from TRUPS 2) , Subordinated borrowings and borrowings | 2,670 | 3,569 | 3,914 | |||||||||||||
Repayment of perpetuals | - | (429 | ) | (212 | ) | |||||||||||
Repayment of non-cumulative subordinated note | (4,230 | ) | (4,086 | ) | (3,000 | ) | ||||||||||
Dividends paid | (494 | ) | (167 | ) | (121 | ) | ||||||||||
Coupons on perpetual securities | (65 | ) | (48 | ) | (52 | ) | ||||||||||
Payment of lease liabilities | (39 | ) | (49 | ) | (59 | ) | ||||||||||
Change in ownership non-controlling interests | (11 | ) | (57 | ) | 61 | |||||||||||
Other | - | 31 | - | |||||||||||||
Net cash flows from financing activities | 18 | (3,241 | ) | (1,834 | ) | 300 | ||||||||||
Net increase / (decrease) in cash and cash equivalents 3) | (4,373 | ) | 1,570 | (1,550 | ) | |||||||||||
Net cash and cash equivalents at the beginning of the year | 8,486 | 6,861 | 8,372 | |||||||||||||
Effects of changes in exchange rate | (38 | ) | 55 | 67 | ||||||||||||
Net cash and cash equivalents at the end of the year | 18 | 4,074 | 8,486 | 6,889 |
1 |
2 | Trust pass-through securities. |
3 | Included in net increase / (decrease) in cash and cash equivalents are interest received EUR |
4 | n.a. in above table should be read as “not applicable”. |
Notes to the consolidated financial statements Note 1 | ||||
Item | Measurement basis | |
Insurance and reinsurance contracts | Fulfilment cash flows plus the CSM | |
Net defined benefit liability / (asset) | Fair value of plan assets less the present value of the defined benefit obligations | |
Other impaired non-financial assets | Higher of fair value less costs of disposal and value in use | |
Financial instruments held to collect financial cash flows | Amortized cost |
Annual Report on Form 20-F 2023 | 131 |
![]() | About Aegon Governance and risk management Financial information | |||
![]() |
Shareholders’ equity | Net result | Shareholders’ equity | Net result | |||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
In accordance with IFRS | 23,813 | 22,018 | 21,842 | 2,029 | (135 | ) | 1,236 | |||||||||||||||||||||||||||||||||
In accordance with IFRS | ||||||||||||||||||||||||||||||||||||||||
In accordance with IFRS | ||||||||||||||||||||||||||||||||||||||||
In accordance with IFRS | 7,475 | 8,815 | (199 | ) | (540 | ) | ||||||||||||||||||||||||||||||||||
Adjustment of EU ‘IAS 39’ carve-out | ||||||||||||||||||||||||||||||||||||||||
Adjustment of EU ‘IAS 39’ carve-out | ||||||||||||||||||||||||||||||||||||||||
Adjustment of EU ‘IAS 39’ carve-out | ||||||||||||||||||||||||||||||||||||||||
Adjustment of EU ‘IAS 39’ carve-out | 632 | 1,054 | 774 | (422 | ) | 280 | 375 | - | - | - | (450 | ) | ||||||||||||||||||||||||||||
Tax effect of the adjustment | (163 | ) | (257 | ) | (167 | ) | 93 | (90 | ) | (86 | ) | |||||||||||||||||||||||||||||
Tax effect of the adjustment | ||||||||||||||||||||||||||||||||||||||||
Tax effect of the adjustment | ||||||||||||||||||||||||||||||||||||||||
Tax effect of the adjustment | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Effect of the adjustment after tax | ||||||||||||||||||||||||||||||||||||||||
Effect of the adjustment after tax | ||||||||||||||||||||||||||||||||||||||||
Effect of the adjustment after tax | ||||||||||||||||||||||||||||||||||||||||
Effect of the adjustment after tax | 469 | 798 | 607 | (328 | ) | 190 | 289 | - | - | - | (450 | ) | ||||||||||||||||||||||||||||
In accordance with EU-IFRS | 24,282 | 22,815 | 22,449 | 1,701 | 55 | 1,525 | ||||||||||||||||||||||||||||||||||
In accordance with EU-IFRS | ||||||||||||||||||||||||||||||||||||||||
In accordance with EU-IFRS | ||||||||||||||||||||||||||||||||||||||||
In accordance with EU-IFRS | 7,475 | 8,815 | (199 | ) | (990 | ) |
∎ | IFRS 17 Insurance contracts |
∎ | Initial Application of IFRS 17 and IFRS 9 – Comparative information (Amendments to IFRS 17) |
∎ | IFRS 9 Financial instruments |
∎ | Prepayment Features with Negative Compensation (Amendments to IFRS 9) |
∎ | Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) |
∎ | Definition of Accounting Estimates (Amendments to IAS 8) |
∎ | Deferred tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) |
∎ | A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules; and |
∎ | Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date. The mandatory temporary exception – the use of which is required to be disclosed – applies immediately. |
Notes to the consolidated financial statements Note 2 | ||||||
∎ |
∎ | Residential mortgages related to the insurance entities in the Netherlands are measured at fair value through P&L instead of at amortized cost; |
∎ | Insurance liabilities are measured at fulfillment value which represents the present value of future cashflow to fulfil insurance contracts, including a risk adjustment for non-financial risk. Interest rate movements impacting the fulfillment value flow through P&L or OCI, depending on the accounting policy choice. Aegon Americas applies the OCI option for certain groups of contracts, whereas Aegon UK applies the P&L option. These choices are aligned with the measurement of the related assets to ensure an accounting match for market movements on assets and liabilities; and |
∎ | On top of the fulfillment value, a contractual service margin (CSM), reflecting unearned profits, is added to the insurance liabilities. |
Annual Report on Form 20-F 2023 | 133 |
![]() | About Aegon Governance and risk management Financial information | |||
Opening balance sheet reconciliation | December 31, 2022 | Adoption of IFRS 9 and IFRS 17 | January 1, 2023 | |||||||||
Cash and cash equivalents | 3,407 | (5 | ) | 3,402 | ||||||||
Assets held for sale | 89,752 | (1,088 | ) | 88,664 | ||||||||
Investments | 76,825 | 177,934 | 254,759 | |||||||||
Investments for account of policyholders | 180,006 | (180,006 | ) | - | ||||||||
Derivatives | 2,760 | 11 | 2,771 | |||||||||
Investments in joint ventures | 1,443 | (13 | ) | 1,430 | ||||||||
Investments in associates | 165 | - | 165 | |||||||||
Reinsurance contract assets | 21,184 | (4,245 | ) | 16,939 | ||||||||
Insurance contract assets | - | 36 | 36 | |||||||||
Deferred tax assets | 1,827 | 606 | 2,433 | |||||||||
Deferred expenses | 12,886 | (12,434 | ) | 452 | ||||||||
Other assets and receivables | 10,291 | (1,051 | ) | 9,240 | ||||||||
Intangible assets | 1,240 | (820 | ) | 420 | ||||||||
Total assets | 401,786 | (21,075 | ) | 380,711 | ||||||||
Shareholders’ equity | 12,071 | (3,256 | ) | 8,815 | ||||||||
Other equity instruments | 1,943 | - | 1,943 | |||||||||
Issued capital and reserves attributable to owners of Aegon Ltd. | 14,014 | (3,256 | ) | 10,758 | ||||||||
Non-controlling interests | 176 | - | 176 | |||||||||
Group equity | 14,190 | (3,255 | ) | 10,935 | ||||||||
Subordinated borrowings | 2,295 | - | 2,295 | |||||||||
Trust pass-through securities | 118 | - | 118 | |||||||||
Reinsurance contract liabilities | - | 270 | 270 | |||||||||
Insurance contracts for account of policyholders | 100,409 | (100,409 | ) | - | ||||||||
Insurance contract liabilities | 87,309 | 88,811 | 176,120 | |||||||||
Investments contracts | 10,658 | (10,658 | ) | - | ||||||||
Investment contracts for account of policyholders | 80,555 | (80,555 | ) | - | ||||||||
Investment contract liabilities with discretionary participating features | - | 21,055 | 21,055 | |||||||||
Investment contracts without discretionary participating features | - | 65,227 | 65,227 | |||||||||
Derivatives | 6,094 | (919 | ) | 5,175 | ||||||||
Borrowings | 4,051 | - | 4,051 | |||||||||
Liabilities held for sale / disposal groups | 84,339 | (156 | ) | 84,183 | ||||||||
Other liabilities | 11,766 | (483 | ) | 11,283 | ||||||||
Total liabilities | 387,596 | (17,819 | ) | 369,777 | ||||||||
Total equity and liabilities | 401,786 | (21,076 | ) | 380,711 |
Notes to the consolidated financial statements Note 2 | |||||
Opening balance sheet reconciliation | December 31, 2021 | Adoption of IFRS 9 and IFRS 17 | January 1, 2022 | |||||||||
Cash and cash equivalents | 6,889 | (28 | ) | 6,861 | ||||||||
Investments | 157,831 | 251,614 | 409,444 | |||||||||
Investments for account of policyholders | 250,953 | (250,953 | ) | - | ||||||||
Derivatives | 8,827 | 16 | 8,843 | |||||||||
Investments in joint ventures | 1,743 | (28 | ) | 1,715 | ||||||||
Investments in associates | 1,289 | - | 1,289 | |||||||||
Reinsurance contract assets | 20,992 | 330 | 21,322 | |||||||||
Insurance contract assets | - | 110 | 110 | |||||||||
Deferred tax assets | 131 | 2,033 | 2,164 | |||||||||
Deferred expenses | 10,503 | (10,076 | ) | 428 | ||||||||
Other assets and receivables | 7,761 | (963 | ) | 6,798 | ||||||||
Intangible assets | 1,333 | (748 | ) | 585 | ||||||||
Total assets | 468,252 | (8,693 | ) | 459,560 | ||||||||
Shareholders’ equity | 23,813 | (12,795 | ) | 11,018 | ||||||||
Other equity instruments | 2,363 | - | 2,363 | |||||||||
Issued capital and reserves attributable to owners of Aegon Ltd. | 26,176 | (12,795 | ) | 13,381 | ||||||||
Non-controlling interests | 196 | - | 196 | |||||||||
Group equity | 26,372 | (12,795 | ) | 13,577 | ||||||||
Subordinated borrowings | 2,194 | - | 2,194 | |||||||||
Trust pass-through securities | 126 | - | 126 | |||||||||
Reinsurance contract liabilities | - | 471 | 471 | |||||||||
Insurance contracts for account of policyholders | 149,323 | (149,323 | ) | - | ||||||||
Insurance contract liabilities | 124,422 | 165,644 | 290,066 | |||||||||
Investments contracts | 21,767 | (21,767 | ) | - | ||||||||
Investment contracts for account of policyholders | 104,592 | (104,592 | ) | - | ||||||||
Investment contract liabilities with discretionary participating features | - | 27,392 | 27,392 | |||||||||
Investment contracts without discretionary participating features | - | 92,364 | 92,364 | |||||||||
Derivatives | 10,639 | (3,501 | ) | 7,138 | ||||||||
Borrowings | 9,661 | - | 9,661 | |||||||||
Other liabilities | 19,158 | (2,586 | ) | 16,572 | ||||||||
Total liabilities | 441,881 | 4,102 | 445,983 | |||||||||
Total equity and liabilities | 468,252 | (8,693 | ) | 459,560 |
Annual Report on Form 20-F 2023 | 135 |
![]() | About Aegon Governance and risk management Financial information | |||
Impact of adoption of new accounting standards on the consolidated income statement | YE 2022 (as previously reported) | Adoption of IFRS 9 and IFRS 17 | YE 2022 (restated) | |||||||||
Earnings per share (EUR per share) | ||||||||||||
Basic earnings per common share | (0.73 | ) | 0.43 | (0.30 | ) | |||||||
Basic earnings per common share B | (0.02 | ) | 0.01 | (0.01 | ) | |||||||
Diluted earnings per common share | (0.73 | ) | 0.43 | (0.30 | ) | |||||||
Diluted earnings per common share B | (0.02 | ) | 0.01 | (0.01 | ) | |||||||
Earnings per common share calculation | ||||||||||||
Net result / (loss) attributable to owners | (1,433 | ) | 864 | (569 | ) | |||||||
Coupons on perpetual securities | (36 | ) | - | (36 | ) | |||||||
Net result / (loss) attributable to owners for basic earnings per share calculation | (1,469 | ) | 864 | (605 | ) | |||||||
Weighted average number of common shares outstanding (in million) | 2,010 | - | 2,010 | |||||||||
Weighted average number of common shares B outstanding (in million) | 536 | - | 536 |
Notes to the consolidated financial statements Note 2 | ||||
Annual Report on Form 20-F 2023 | 137 |
![]() | About Aegon Governance and risk management Financial information | |||
∎ | Assessment whether an insurance contract met the definition of an insurance contract with direct participating features; |
∎ | Assessment whether an investment contract met the definition of an investment contract with discretionary participating features; and |
∎ | Identification of discretionary cash flows for insurance contracts without direct participating features. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | Amounts charged to policyholders prior to the transition date; |
∎ | Excess claims and expenses paid in this period, including acquisition costs; and |
∎ | The estimated change in the risk adjustment for non-financial risk caused by the release of risk before the transition date. |
Annual Report on Form 20-F 2023 | 139 |
![]() | About Aegon Governance and risk management Financial information | |||
∎ | Amortized cost (“AC”): Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest (“SPPI”), and that are not designated at FVPL, are measured at amortized cost. The carrying amount of these assets is adjusted by any Expected Credit Loss (“ECL”) allowance recognized. |
∎ | Fair value through other comprehensive income (“FVOCI”): Financial assets that are held for collection of contractual cash flows and for selling the assets, where the assets’ cash flows represent solely payments of principal and interest, and that are not designated at FVPL, are measured at FVOCI. |
∎ | Fair value through profit or loss (“FVPL”): Assets that do not meet the criteria for amortized cost or FVOCI are measured mandatorily at fair value through profit or loss. |
Notes to the consolidated financial statements Note 2 | ||||
Reconciliation of financial instruments, January 1, 2023 | IAS 39 | IAS 39 amount | Reclassifi- cation | Remea- surement - ECL | Remea- surement - Other | IFRS 9 category 3) | IFRS 9 amount | |||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||
Shares | FVPL | 15,698 | (193 | ) | - | - | FVPL (d) | 15,505 | ||||||||||||||||||
Shares | AFS | 348 | - | - | FVPL (m) | 348 | ||||||||||||||||||||
Shares | 195 | (186 | ) | - | - | FVOCI (d) | 10 | |||||||||||||||||||
Debt securities | AFS | 53,093 | (1,486 | ) | - | - | FVOCI | 51,607 | ||||||||||||||||||
Debt securities | FVPL | 6,248 | (5,449 | ) | - | - | FVPL (m) | 799 | ||||||||||||||||||
Debt securities | 6,935 | - | - | FVPL (d) | 6,935 | |||||||||||||||||||||
Money market and other short-term investments | AFS | 5,514 | (2,938 | ) | - | - | FVOCI | 2,576 | ||||||||||||||||||
Money market and other short-term investments | FVPL | 1,362 | 1,514 | - | - | FVPL (m) | 2,876 | |||||||||||||||||||
Money market and other short-term investments | 1,429 | - | - | FVPL (d) | 1,429 | |||||||||||||||||||||
Loans | L&R | 12,511 | (2,095 | ) | (12 | ) | 4 | AC | 10,408 | |||||||||||||||||
Deposits with financial institutions | L&R | 45 | - | - | - | AC | 45 | |||||||||||||||||||
Deposits with financial institutions | FVPL | 2,360 | - | - | - | FVPL (d) | 2,360 | |||||||||||||||||||
Unconsolidated investment funds | FVPL | 154,741 | - | - | - | FVPL (d) | 154,741 | |||||||||||||||||||
Other investments | FVPL | 3,722 | (3,190 | ) | - | - | FVPL (d) | 532 | ||||||||||||||||||
Other investments | AFS | 4,056 | FVPL (m) | 4,056 | ||||||||||||||||||||||
Other investments | 840 | (810 | ) | - | - | FVOCI | 31 | |||||||||||||||||||
IAS 39 / IFRS 9 Investments 1) | 256,328 | (2,065 | ) | (12 | ) | 4 | 254,257 | |||||||||||||||||||
Cash and cash equivalents | L&R | 3,407 | (4 | ) | - | - | AC | 3,402 | ||||||||||||||||||
Other financial assets and receivables 2) | L&R | 9,722 | (1,050 | ) | - | - | AC | 8,671 | ||||||||||||||||||
Derivatives | FVPL | 2,760 | 11 | - | - | FVPL (m) | 2,771 | |||||||||||||||||||
Total financial assets | 272,217 | (3,108 | ) | (12 | ) | 4 | 269,102 | |||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Investment contracts | AC | 10,485 | (888 | ) | - | - | AC | 9,597 | ||||||||||||||||||
Investment contracts | FVPL | 55,254 | 376 | - | - | FVPL (d) | 55,631 | |||||||||||||||||||
Investment contracts without discretionary participating features | 65,739 | (512 | ) | 65,227 | ||||||||||||||||||||||
Long-term borrowings and group loans | AC | 4,051 | - | - | - | AC | 4,051 | |||||||||||||||||||
Derivatives | FVPL | 6,094 | (919 | ) | - | - | FVPL (m) | 5,175 | ||||||||||||||||||
Other liabilities | AC | 10,785 | (507 | ) | - | - | AC | 10,278 | ||||||||||||||||||
Total financial liabilities | 86,668 | (1,938 | ) | - | - | 84,730 |
1 | Investments and other assets include financial assets and non-financial assets as well. Investments under IAS 39 comprises EUR 256,328 million financial assets as detailed in the table and EUR 502 million investments in real estates on December 31, 2023. Investments under IFRS 9 comprises EUR 254,257 million financial assets as detailed in the table and EUR 502 million investments in real estates on January 1, 2023. |
2 | Other assets and receivables under IAS 39 contains EUR 9,722 million other financial assets and receivables and EUR 482 million own used real estates and right of use assets on December 31, 2022. Other assets and receivables under IFRS 9 contains EUR 8,671 million other financial assets and receivables and EUR 482 million own used real estates and right of use assets on January 1, 2023 |
3 | m: mandatorily; d: designated |
Annual Report on Form 20-F 2023 | 141 |
![]() | About Aegon Governance and risk management Financial information | |||
Reconciliation of financial instruments, January 1, 2022 | IAS 39 category | IAS 39 amount | Reclassifi- cation | Remeasure- ment- ECL | Remeasure- ment - Other | IFRS 9 category 3) | IFRS 9 amount | |||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||
Shares | FVPL | 31,203 | (1,660) | - | - | FVPL (d) | 29,543 | |||||||||||||||||||||
Shares | AFS | - | 1,912 | - | - | FVPL (m) | 1,912 | |||||||||||||||||||||
Shares | 350 | (279) | - | - | FVOCI (d) | 72 | ||||||||||||||||||||||
Debt securities | AFS | 93,899 | (22,925) | - | - | FVOCI | 70,974 | |||||||||||||||||||||
Debt securities | FVPL | 23,117 | (22,387) | - | - | FVPL (m) | 730 | |||||||||||||||||||||
Debt securities | 45,312 | - | - | FVPL (d) | 45,312 | |||||||||||||||||||||||
Money market and other short-term investments | AFS | 4,790 | (2,289) | - | - | FVOCI | 2,501 | |||||||||||||||||||||
Money market and other short-term investments | FVPL | 1,602 | 694 | - | - | FVPL (m) | 2,296 | |||||||||||||||||||||
Money market and other short-term investments | 1,624 | - | - | FVPL (d) | 1,624 | |||||||||||||||||||||||
Loans | L&R | 46,770 | (21,971) | (150) | 110 | AC | 24,760 | |||||||||||||||||||||
Loans | 20,106 | - | 2,594 | FVPL (d) | 22,700 | |||||||||||||||||||||||
Deposits with financial institutions | L&R | 52 | - | - | - | AC | 52 | |||||||||||||||||||||
Deposits with financial institutions | FVPL | 4,105 | - | - | - | FVPL (d) | 4,105 | |||||||||||||||||||||
Unconsolidated investment funds | FVPL | 191,950 | - | - | - | FVPL (d) | 191,950 | |||||||||||||||||||||
Other investments | FVPL | 6,893 | (2,800) | - | - | FVPL (d) | 4,093 | |||||||||||||||||||||
Other investments | 3,572 | - | - | FVPL (m) | 3,572 | |||||||||||||||||||||||
Other investments | AFS | 844 | (800) | - | - | FVOCI | 44 | |||||||||||||||||||||
IAS 39 / IFRS 9 Investments 1) | 405,578 | (1,891) | (150) | 2,704 | 406,239 | |||||||||||||||||||||||
Cash and cash equivalents | L&R | 6,889 | (28) | - | - | AC | 6,861 | |||||||||||||||||||||
Other financial assets and receivables 2) | L&R | 6,988 | (963) | - | - | AC | 6,025 | |||||||||||||||||||||
Derivatives | FVPL | 8,827 | 16 | - | - | FVPL (m) | 8,843 | |||||||||||||||||||||
Total financial assets | 428,281 | (2,868) | (150) | 2,704 | 427,967 | |||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||
Investment contracts | AC | 21,573 | (899) | - | - | AC | 20,674 | |||||||||||||||||||||
Investment contracts | FVPL | 71,242 | 448 | - | - | FVPL (d) | 71,690 | |||||||||||||||||||||
Investment contracts without discretionary participating features | 92,815 | (451) | - | - | 92,364 | |||||||||||||||||||||||
Long-term borrowings and group loans | AC | 9,661 | - | - | - | AC | 9,661 | |||||||||||||||||||||
Derivatives | FVPL | 10,639 | (3,501) | - | - | FVPL (m) | 7,138 | |||||||||||||||||||||
Other liabilities | AC | 12,916 | (1,033) | - | - | AC | 11,883 | |||||||||||||||||||||
Total financial liabilities | 126,030 | (4,985) | - | - | 121,046 |
1 | Investments and other assets include financial assets and non-financial assets as well. Investments under IAS 39 comprises EUR 405,578 million financial assets as detailed in the table and EUR 3,206 million investments in real estates on December 31, 2023. Investments under IFRS 9 comprises EUR 406,871 million financial assets as detailed in the table and EUR 3,206 million investments in real estates on January 1, 2023. |
2 | Other assets and receivables under IAS 39 contains EUR 6,988 million other financial assets and receivables and EUR 654 million own used real estates and right of use assets on December 31, 2022. Other assets and receivables under IFRS 9 contains EUR 6,025 million other financial assets and receivables and EUR 654 million own used real estates and right of use assets on January 1, 2023. |
3 | m: mandatorily; d: designated |
Notes to the consolidated financial statements Note 2 | ||||
Impairment / ECL reconciliation | Loss allowance under IAS 39 / Provision under IAS 37 | Reclassifications | Remeasurements | ECL under IFRS 9 | ||||||||||||
Measurement category | ||||||||||||||||
Loans and receivables (IAS 39) to Financial assets at amortized cost (IFRS 9) | (9 | ) | 2 | (4 | ) | (12 | ) | |||||||||
Available for sale financial instruments (IAS 39) to Financial assets at FVOCI (IFRS 9) | (374 | ) | 187 | (89 | ) | (276 | ) | |||||||||
Total on January 1, 2023 | (383 | ) | 189 | (93 | ) | (287 | ) |
Impairment / ECL reconciliation | Loss allowance under IAS 39 / Provision under IAS 37 | Reclassifications | Remeasurements | ECL under IFRS 9 | ||||||||||||
Measurement category | ||||||||||||||||
Loans and receivables (IAS 39) to Financial assets at amortized cost (IFRS 9) | (125 | ) | 6 | (31 | ) | (150 | ) | |||||||||
Available for sale financial instruments (IAS 39) to Financial assets at FVOCI (IFRS 9) | (376 | ) | 190 | (33 | ) | (219 | ) | |||||||||
Total on January 1, 2022 | (501 | ) | 196 | (63 | ) | (369 | ) |
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on 15 August 2023) |
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements (Issued on 25 May 2023) |
IFRS 9) | ||||||
Financial Statements: Classification of Liabilities as Current or Non-current (IAS 1) | Issued on 23 January | |||||
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liabilities with |
2021 | 2020 | |||||||||||||||||||||||
Financial assets at fair value | Fair value at the end of the reporting period | Change in fair value during the reporting period | Fair value at the end of the reporting period | Change in fair value during the reporting period | ||||||||||||||||||||
Shares 1) | SPPI | 44 | 10 | 51 | 2 | |||||||||||||||||||
Other | 618 | 36 | 623 | 8 | ||||||||||||||||||||
Debt securities | SPPI | 93,234 | (3,132 | ) | 92,836 | 5,461 | ||||||||||||||||||
Other | 3,961 | (75 | ) | 6,514 | 6 | |||||||||||||||||||
Money Markets and other short-term investments | SPPI | 2,324 | (0 | ) | 2,657 | 0- | ||||||||||||||||||
Other | 2,586 | 0- | 2,011 | 0- | ||||||||||||||||||||
Mortgage loans | SPPI | 44,366 | (195 | ) | 43,258 | 72 | ||||||||||||||||||
Other | - | - | 0- | 0- | ||||||||||||||||||||
Private loans | SPPI | 5,474 | (267 | ) | 5,261 | 213 | ||||||||||||||||||
Other | 36 | (10 | ) | 50 | 13 | |||||||||||||||||||
Deposits with financial institutions | SPPI | 52 | 0- | 92 | 0- | |||||||||||||||||||
Other | - | - | 0- | 0- | ||||||||||||||||||||
Policy loans | SPPI | 1 | 0- | 1 | 0- | |||||||||||||||||||
Other | 1,892 | (0 | ) | 1,800 | 12 | |||||||||||||||||||
Other financial assets | SPPI | - | - | 0- | 0- | |||||||||||||||||||
Other | 5,598 | 724 | 4,946 | (145 | ) | |||||||||||||||||||
At December 31 | 160,187 | (2,909 | ) | 160,100 | 5,644 |
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SPPI compliant financial assets at carrying value | AAA | AA | A | BBB | BB | B | CCC or lower | Not Rated | Total | |||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||
Shares – Carried at fair value | - | - | - | 23 | 13 | - | 8 | - | 44 | |||||||||||||||||||||||||||
Debt securities – Carried at fair value | 26,076 | 10,195 | 24,916 | 28,524 | 1,828 | 918 | 754 | 24 | 93,234 | |||||||||||||||||||||||||||
Money market and other short-term investments- carried at fair value | 25 | 120 | 1,986 | 193 | - | - | - | - | 2,324 | |||||||||||||||||||||||||||
Mortgage loans– Carried at amortized cost | 1,383 | 4,221 | 3,301 | 519 | 59 | - | - | 31,141 | 40,624 | |||||||||||||||||||||||||||
Private loans – Carried at amortized cost | 2,607 | 216 | 189 | 1,050 | 44 | - | - | 744 | 4,850 | |||||||||||||||||||||||||||
Other financial assets – Carried at fair value | - | - | 13 | 1 | - | 18 | - | 21 | 53 | |||||||||||||||||||||||||||
At December 31 | 30,090 | 14,752 | 30,405 | 30,310 | 1,944 | 936 | 762 | 31,930 | 141,128 | |||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||
Shares – Carried at fair value | - | - | - | 17 | 24 | 7 | 3 | 51 | ||||||||||||||||||||||||||||
Debt securities – Carried at fair value | 28,970 | 9,869 | 23,615 | 26,310 | 2,119 | 938 | 1,015 | 2 | 92,836 | |||||||||||||||||||||||||||
Money market and other short-term investments- carried at fair value | 136 | 129 | 2,178 | 213 | - | - | - | - | 2,657 | |||||||||||||||||||||||||||
Mortgage loans– Carried at amortized cost | 1,066 | 3,494 | 3,369 | 695 | 78 | - | - | 30,596 | 39,298 | |||||||||||||||||||||||||||
Private loans – Carried at amortized cost | 1,913 | 74 | 142 | 1,098 | 46 | - | - | 1,068 | 4,341 | |||||||||||||||||||||||||||
Other financial assets – Carried at fair value | - | - | 6 | 1 | 0 | 45 | 1 | 41 | 93 | |||||||||||||||||||||||||||
At December 31 | 32,085 | 13,565 | 29,309 | 28,334 | 2,267 | 989 | 1,018 | 31,707 | 139,275 |
2021 | 2020 | |||||||||||||||||||||||
SPPI compliant financial assets rated BB or below | Carrying amount | Fair value | Carrying amount | Fair value | ||||||||||||||||||||
Shares – Carried at fair value | 21 | 21 | 34 | 34 | ||||||||||||||||||||
Debt securities – Carried at fair value | 3,524 | 3,524 | 4,073 | 4,073 | ||||||||||||||||||||
Mortgage loans – Carried at amortized cost | 31,200 | 34,254 | 30,674 | 33,828 | ||||||||||||||||||||
Private loans – Carried at amortized cost | 788 | 816 | 1,114 | 1,210 | ||||||||||||||||||||
Deposits with financial institutions – Carried at amortized cost | 38 | 38 | 85 | 86 | ||||||||||||||||||||
Other financial assets – Carried at fair value | 1 | 1 | 1 | 1 | ||||||||||||||||||||
At December 31 | 35,572 | 38,654 | 35,982 | 39,232 |
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2021 | 2020 | |||||||||||||||||||||||
Financial assets at fair value | Fair value at the end of the reporting period | Change in fair value during the reporting period | Fair value at the end of the reporting period | Change in fair value during the reporting period | ||||||||||||||||||||
Debt securities | SPPI | 178 | 8 | 169 | 119 | |||||||||||||||||||
Other | 0- | 0- | 1 | 0- | ||||||||||||||||||||
Money Markets and other short-term investments | SPPI | 0- | 0- | 0- | 0- | |||||||||||||||||||
Other | 10 | 0- | 37 | 0- | ||||||||||||||||||||
At December 31 | 188 | 8 | 207 | 119 |
SPPI compliant financial assets at carrying value | AAA | AA | A | BBB | BB | B | CCC or lower | Not Rated | Total | |||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||
Debt securities – Carried at fair value | 8 | 13 | 120 | 37 | - | - | - | - | 178 | |||||||||||||||||||||||||||
At December 31 | 8 | 13 | 120 | 37 | - | - | - | - | 178 | |||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||
Debt securities – Carried at fair value | 9 | 19 | 106 | 35 | - | - | - | - | 169 | |||||||||||||||||||||||||||
At December 31 | 9 | 19 | 106 | 35 | - | - | - | - | 169 |
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Annual Report on Form 20-F 2023 | 143 |
![]() | About Aegon Governance and risk management Financial information | |||
Control structure of the asset manager (i.e. whether an Aegon subsidiary); |
The investment constraints posed by investment mandate; |
Legal rights held by the policyholder to the separate assets in the investment vehicle (e.g. policyholders could have the voting rights related to these investments); |
The governance structure, such as an independent |
Rights held by other parties (e.g. voting rights of policyholders that are substantive or not). |
General account investment of Aegon; |
Aegon’s investments held for policyholder; |
Guarantees provided by Aegon on return of policyholders in specific investment vehicles; |
![]() |
Notes to the consolidated financial statements Note 2 | ||||
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Annual Report on Form 20-F 2023 | 145 |
![]() | About Aegon Governance and risk management Financial information | |||
Notes to the consolidated financial statements Note 2 | ||||
∎ | Embedded derivatives whose economic characteristics and risks are not closely related to those of the host contract, and whose terms would not meet the definition of an insurance contract as a standalone instrument; and |
∎ | Investment components (i.e. amounts that an insurance contract requires Aegon to repay to a policyholder, even if the insured event does not occur) that are distinct. In other words, investment components that: |
∎ | Do not meet the definition of an investment contract with discretionary participation features; |
∎ | Are not highly interrelated with the insurance component; and |
∎ | For which contracts with equivalent terms are sold, or could be sold, separately in the same market or jurisdiction. |
∎ | Groups of insurance contracts that are onerous at initial recognition. |
∎ | Groups of insurance contracts that are not onerous at initial recognition, subdivided into: |
∎ | Groups of insurance contracts that have no significant possibility of becoming onerous subsequently; and |
∎ | A group of remaining contracts in the portfolio, if any. |
Annual Report on Form 20-F 2023 | 147 |
![]() | About Aegon Governance and risk management Financial information | |||
∎ | Insurance acquisition cash flows that can be directly attributable to a specific group of insurance contracts (e.g. acquisition commissions) are allocated to that group, as well as to groups that are expected to include the renewals of those contracts. |
∎ | Insurance acquisition cash flows that are directly attributable to a portfolio of insurance contracts, other than those in described in the above bullet, are allocated to the groups of contracts in the portfolio on a systematic and rational basis. |
∎ | The contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items; |
∎ | Aegon expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items, and |
∎ | Aegon expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | The initial assessment based on product characteristics is performed using multiple qualitative indicators. For example, Aegon considers whether a contract includes substantial contractual profit-sharing rates and the degree to which these can subsequently be reset. It also considers the extent to which asset management fees and other charges are commensurate with the services provided and in line with market terms, and whether a product guarantees a minimum return on investment. |
∎ | If the qualitative step is not conclusive on its own, the product undergoes quantitative analysis. Different calculation methods are used, depending on the product characteristics and the market conditions at the inception of the contract. |
∎ | The policyholder’s share in the fair value returns is assessed by comparing the expected total return on the underlying items, net of the asset management fees, with the expected payments to the policyholder that are based on those underlying items. Variable fees and charges that cover multiple services are split into an insurance component and investment management component, with only the latter being deducted from total returns. As a critical judgment, the threshold for a substantial share of the fair value returns is in the range of 50% (or higher). |
∎ | The assessment of the variability in policyholder benefits often requires the use of probability-weighted models, factoring all scenarios where returns are impacted by the allocation of clearly identifiable assets, variable fees and guarantees. |
∎ | The contract contains a non-distinct investment component or the policyholder has a right to withdraw an amount under the policy; |
∎ | Aegon expects that this amount will include an investment return; and |
∎ | Aegon expects to perform investment activity to generate that investment return. |
∎ | Estimates of future cash flows that are within the contract boundary; |
∎ | An adjustment to reflect time value of money and the financial risks related to future cash flows, to the extent that the financial risks are not included in the estimates of future cash flows and |
∎ | A risk adjustment for non-financial risk. |
Annual Report on Form 20-F 2023 | 149 |
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∎ | Aegon has the practical ability to reassess the risks of a particular policyholder, and as a result, can set a price or level of benefits that fully reflects those risks; or |
∎ | Both of the following apply: |
∎ | Aegon has the practical ability to reassess the risks of the portfolio that contains the contract and can set a price or level of benefits that fully reflects the risks of that portfolio; and |
∎ | The pricing of the premiums up to the date when the risks are reassessed, does not take into account any risks that relate to periods after the reassessment date. |
∎ | The initial recognition of the fulfillment cash flows; |
∎ | Any cash flows arising from the contracts in the group at that date; and |
∎ | The derecognition of any asset for insurance acquisition cash flows and any other asset or liability previously recognized for cash flows related to the group of contracts. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | The effect of any new contracts added to the group; |
∎ | Interest accreted on the carrying amount of the contractual service margin during the period; |
∎ | Changes in the fulfillment cash flows that relate to future services, except to the extent that: |
∎ | Such increases in the fulfillment cash flows exceed the carrying amount of the contractual service margin, giving rise to a loss, or |
∎ | Such decreases in the fulfillment cash flows are allocated to the loss component. |
∎ | The effect of any currency exchange differences on the contractual service margin; and |
∎ | The amount recognized as insurance revenue because of the insurance contract services provided in the period. |
∎ | Experience adjustments arising from premiums received in the period that relate to future services and related cash flows, measured at the discount rates determined on initial recognition; |
∎ | Changes in estimates of the present value of future cash flows in the liability for remaining coverage (other than those that relate to the effects of the time value of the money and changes in financial risks), measured at the discount rates determined on initial recognition; |
∎ | Differences between any non-distinct investment component expected to become payable in the period and the actualnon-distinct investment component that becomes payable in the period; |
∎ | Differences between any loan to a policyholder expected to become repayable in the period and the actual loan to a policyholder that becomes repayable in the period; and |
∎ | Changes in the risk adjustment for non-financial risk that relate to future services. |
Annual Report on Form 20-F 2023 | 151 |
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Proportion of CSM released as insurance revenue = | A | |
[A + B] |
∎ | The effect of any new contracts added to the group of contracts; |
∎ | The change in the amount of Aegon’s share of the fair value of the underlying items and changes in fulfillment cash flows relating to future services, except to the extent that: |
∎ | For groups of contracts, there is a policy of excluding from the contractual service margin changes in the impact of financial risk on its share of the underlying items (“risk mitigation”); |
∎ | The decrease in the amount of the group of contracts share of the fair value of the underlying items, or an increase in the fulfillment cash flows relating to future services, exceeds the carrying amount of the contractual service margin, giving rise to a loss in the income statement; or |
∎ | The increase in the amount of the group of contracts share of the fair value of the underlying items, or a decrease in the fulfillment cash flows relating to future services, is allocated to a loss component, reversing losses previously recognized in the income statement; |
∎ | The effect of any currency exchange differences on the contractual service margin; and |
∎ | The amount recognized as insurance revenue because of the insurance contract services provided in the period. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | Contracts to the premium allocation approach is applied, are assumed not to be onerous at inception, unless facts and circumstances indicate otherwise. |
∎ | Contracts to which the premium allocation approach are grouped together in annual cohorts, which is more aligned with the nature of the products. |
Annual Report on Form 20-F 2023 | 153 |
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∎ | The fulfillment cash flows allocated to the group are adjusted to eliminate those that relate to the rights and obligations derecognized; |
∎ | The contractual service margin of the group is adjusted for the change in the fulfillment cash flows, except where such changes are allocated to a loss component; and |
∎ | The number of coverage units for the expected remaining insurance contract services is adjusted to reflect the coverage units derecognized from the group. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | future renewals of contracts recognized at the acquisition date; and |
∎ | other future insurance contracts without paying again insurance acquisition cash flows that the acquiree has already paid. |
Annual Report on Form 20-F 2023 | 155 |
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∎ | The beginning of the coverage period; or |
∎ | The date that an onerous group of underlying insurance contracts is recognized, if Aegon entered into the related reinsurance contract held at or before that date. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | The contractual service margin of any new contracts that are added to the group in the period; |
∎ | Interest accreted on the carrying amount of the contractual service margin during the period; |
∎ | Income recognized in profit or loss in the reporting period to coincide with the initial recognition of an onerous group of underlying insurance contracts or on addition of onerous contracts to that group; |
∎ | Reversals of a loss-recovery component to the extent those reversals are not changes in the fulfillment cash flows of the group of reinsurance contracts held; |
∎ | Changes in fulfillment cash flows, measured at discount rates at initial recognition, to the extent that the change relates to future services, except for the extent that: |
∎ | The change results from a change in fulfillment cash flows allocated to a group of underlying insurance contracts that does not adjust the contractual service margin of the group of underlying contracts; |
∎ | The change results from the remeasurement of the liability for remaining coverage of an onerous group of underlying contracts to which the premium allocation approach is applied; |
∎ | The effect of any currency exchange differences on the contractual service margin; and |
∎ | The amount recognized in the profit or loss because of the services received in the period. |
∎ | The loss recognized on the group of underlying insurance contracts; and |
∎ | The recovery percentage, which is the percentage of claims on the group of underlying insurance contracts that Aegon expects to recover from the reinsurance contracts held. |
Annual Report on Form 20-F 2023 | 157 |
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∎ | The coverage period of each reinsurance contract in the group is one year or less; or |
∎ | Aegon reasonably expects the resulting measurement will not differ materially from the results when applying the general measurement model. |
∎ | The release of contractual service margin for services provided in the period; |
∎ | Changes in the risk adjustments for non-financial risk that do not relate to future service, excluding amounts allocated to the loss component; |
∎ | The claims and other insurance service expenses expected to be incurred in the period, excluding amounts allocated to the loss component; |
∎ | Other amounts, such as experience adjustments for premium receipts that do not relate to future service and income tax that is specifically chargeable to the policyholder. |
∎ | The incurred claims, excluding repayments of non-distinct investment components, and other incurred insurance service expenses; |
∎ | Adjustments to the liabilities for incurred claims that do not arise from the effects of the time value of money, financial risk and changes therein; |
∎ | Amortization of insurance acquisition cash flows; |
∎ | Losses on onerous contracts and the reversals of such losses; and |
∎ | Impairment losses on assets for insurance acquisition cash flows and reversals of such impairment losses. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | specified interest rate, |
∎ | financial instrument price, |
∎ | commodity price, currency exchange rate, |
∎ | index of prices or rates, |
∎ | credit rating or credit index, or |
∎ | other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract. |
Annual Report on Form 20-F 2023 | 159 |
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∎ | Discount rates determined at the date of initial recognition of the group of contracts; |
∎ | A rate that allocates the remaining revised expected finance income or expenses over the remaining duration of the group of contracts at a constant rate (expected yield approach); or |
∎ | For contracts that use a crediting rate to determine amounts due to the policyholders using an allocation that is based on the amounts credited in the period and expected to be credited in future periods (projected crediting rate approach). |
∎ | The date of initial recognition is the date that Aegon becomes party to the contract; |
∎ | Cash flows are within the contract boundary if they result from a substantive obligation of the entity to deliver cash at a present or future date. Aegon has no substantive obligation to deliver cash if it has the practical ability to set a price for the promise to deliver the cash that fully reflects the amount of cash promised and related risks; and |
∎ | The contractual service margin is recognized over the duration of the group of contracts in a systematic way that reflects the transfer of investment services under the contract. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | When the fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e. a Level 1 input) or based on a valuation technique that uses only data from observable markets, the difference is recognized as a gain or loss. |
∎ | In all other cases, the difference is deferred and the timing of recognition of deferred day one profit or loss is determined individually. It is either amortized over the life of the instrument, deferred until the instrument’s fair value can be determined using market observable inputs, or realized through settlement. |
∎ | Fair value through profit or loss (“FVPL”); |
∎ | Fair value through other comprehensive income (“FVOCI”); or |
∎ | Amortized cost (“AC”). |
Annual Report on Form 20-F 2023 | 161 |
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∎ | Aegon’s business model for managing the asset; |
∎ | The cash flow characteristics of the asset; and |
∎ | The designation at FVPL to eliminate or significantly reduce an accounting mismatch or recognition inconsistency. |
∎ | Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest (“SPPI”), and that are not designated at FVPL, are measured at amortized cost. The carrying amount of these assets is adjusted by any expected credit loss allowance recognized (see note 4.2.6 Expected credit losses). Interest revenue from these financial assets is included in “Interest revenue on financial instruments calculated using the effective interest rate method”. |
∎ | Fair value through other comprehensive income (“FVOCI”): Financial assets that are held for collection of contractual cash flows and for selling the assets, where the assets’ cash flows represent solely payments of principal and interest, and that are not designated at FVPL, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses on the instrument’s amortized cost which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized in “Net Investment result”. Interest revenue from these financial assets is included in “Interest revenue on financial instruments calculated using the effective interest rate method”. |
∎ | Fair value through profit or loss (“FVPL”): Assets that do not meet the criteria for amortized cost or FVOCI are measured mandatorily at fair value through profit or loss. |
∎ | How the performance of the business model and the financial assets held within that business model are evaluated and reported to the Group’s senior management; |
∎ | The risks that affect the performance of the business model and the financial assets held within it. In particular, the way those risks are managed; |
∎ | How the Group management is compensated, i.e. whether the compensation is based on the fair value of the assets managed or on the contractual cash flows collected; |
∎ | The expected frequency, value and timing of sales are also important aspects of the Group’s assessment. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | POCI financial assets, for which the original credit-adjusted effective interest rate is applied to the amortized cost of the financial asset. |
Annual Report on Form 20-F 2023 | 163 |
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∎ | Financial assets that are not POCI but have subsequently become credit-impaired (or “Stage 3”), for which interest revenue is calculated by applying the effective interest rate to their amortized cost (i.e. net of the expected credit loss provision). For the definition of “Stage 3”, see note 4.2.6 Expected credit losses. |
∎ | If the borrower is in financial difficulty, whether the modification merely reduces the contractual cash flows to amounts the borrower is expected to be able to pay. |
∎ | Whether any substantial new terms are introduced, such as a profit share/equity-based return that substantially affects the risk profile of the loan or equity conversion option. |
∎ | Significant extension of the loan term when the borrower is not in financial difficulty. |
∎ | Significant change in the interest rate. |
∎ | Change in the currency the loan is denominated in. |
∎ | Insertion of collateral, other security or credit enhancements that significantly affect the credit risk associated with the loan. |
∎ | Change in seniority or subordination. |
∎ | Any change in SPPI assessment of the asset. |
∎ | Significant change in the present value of the instrument. |
∎ | the contractual rights to the asset’s cash flows expire; and |
∎ | when Aegon retains the right to receive cash flows from the asset or has an obligation to pay received cash flows in full without delay to a third party; and |
∎ | either has transferred the asset and substantially all the risks and rewards of ownership, or has neither transferred nor retained all the risks and rewards but has transferred control of the asset. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | Their economic characteristics and risks are not closely related to those of the host contract; |
∎ | A separate instrument with the same terms would meet the definition of a derivative; and |
∎ | The hybrid contract is not measured at fair value through profit or loss. |
∎ | Hedges of the fair value of recognized assets or liabilities or firm commitments (fair value hedges); |
∎ | Hedges of highly probable future cash flows attributable to a recognized asset or liability (cash flow hedges); or |
∎ | Hedges of a net investment in a foreign operation (net investment hedges). |
Annual Report on Form 20-F 2023 | 165 |
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∎ | An interest rate swap that converts a floating rate asset to a fixed rate asset (e.g. combining Treasury Inflation Protected Securities asset and inflation swap to synthetically create fixed rate treasury asset). |
∎ | A cross currency interest rate swap that converts a foreign denominated floating rate asset to a USD fixed rate asset. |
∎ | A cross currency interest rate swap that converts a foreign denominated fixed rate asset to a USD fixed rate asset. |
∎ | A forward starting interest rate swap to hedge the forecasted purchases of fixed rate assets. |
∎ | An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes; |
∎ | The time value of money; and |
∎ | Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. |
∎ | Financial liabilities measured at fair value through profit or loss: this classification is applied to derivatives, financial liabilities held for trading and other financial liabilities designated as such at initial recognition. This is because these liabilities, as well as the related assets, are managed and their performance evaluated on a fair value basis. Gains or losses on financial liabilities designated at FVPL are presented partially in other comprehensive income (the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability, which is determined as the amount that is not attributable to changes in market conditions that give rise to market risk) and partially in profit or loss (the remaining amount of change in the fair value of the liability). This is unless such a presentation would create, or enlarge an accounting mismatch, in which case the gains and losses attributable to changes in the credit risk of the liability are also presented in profit or loss; |
∎ | Financial liabilities arising from the transfer of financial assets which did not qualify for derecognition, whereby a financial liability is recognized for the consideration received for the transfer. In subsequent periods, Aegon recognizes any expense incurred on the financial liability; and |
∎ | Financial guarantee contracts and loan commitments. |
Notes to the consolidated financial statements Note 2 | ||||
∎ | The amount of the loss allowance (calculated as described in note 4.2.6); and |
∎ | The premium received on initial recognition less income recognized in accordance with the principles of IFRS 15. |
Annual Report on Form 20-F 2023 | 167 |
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![]() | Notes to the consolidated financial statements Note 2 |
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Annual Report on Form 20-F 2023 | 169 |
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Notes to the consolidated financial statements Note 2 | ||||
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Annual Report on Form 20-F 2023 | 171 |
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Note 2 |
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Annual Report on Form 20-F 2023 | 173 |
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Notes to the consolidated financial statements Note 3 | ||||
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∎ | Determining criteria for significant increase in credit risk; |
∎ | Choosing appropriate models and assumptions for the measurement of ECL; |
∎ | Establishing the number and relative weightings of forward-looking scenarios for each type of product/market and the associated ECL; and |
∎ | Establishing groups of similar financial assets for the purposes of measuring ECL. |
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2021 | 2020 | |||
Estimated approximate effect | DPAC /VOBA | DPAC /VOBA | ||
1% decrease in the expectected long-term equity growth rate | (95) | (108) |
2021 | 2020 | |||||||
Estimated approximate effect | Net Result | Net Result | ||||||
10% increase to mortality assumption | (128 | ) | (124 | ) | ||||
20% increase in the lapse rate assumption | 71 | 89 |
Annual Report on Form 20-F 2023 | 175 |
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2021 | 2020 | |||||||||||
Estimated approximate effect | GPV | GPV | ||||||||||
5% increase in the utilization rates | 195 | 186 | ||||||||||
5% decrease in the utilization rates | (201 | ) | (193 | ) | ||||||||
10% increase expected mortality | 122 | 113 | ||||||||||
10% decrease expected mortality | (114 | ) | (105 | ) |
∎ | Debt instruments at amortized cost (e.g. loans, debt securities, cash equivalents); |
2021 | 2020 | |||||||||||||
Estimated approximate effect in EUR billion | LAT deficit | LAT deficit | ||||||||||||
100 bps increase in interest rate | (3.3 | ) | (3.9 | ) | ||||||||||
100 bps decrease in interest rate | 4.3 | 5.2 | ||||||||||||
50 bps increase in bond credit spread | 0.3 | 0.2 | ||||||||||||
50 bps decrease in bond credit spread | (0.3 | ) | (0.3 | ) | ||||||||||
50 bps increase in mortgage spread | 0.5 | 0.6 | ||||||||||||
50 bps decrease in mortgage spread | (0.6 | ) | (0.6 | ) | ||||||||||
5 bps increase in liquidity premium | (0.2 | ) | (0.2 | ) | ||||||||||
5 bps decrease in liquidity premium | 0.2 | 0.2 |
∎ | Debt instruments at fair value through other comprehensive income (FVOCI) with cumulative gains and losses reclassified to profit or loss upon de-recognition (e.g. debt securities, security lending, repo); |
∎ | Debt instruments, derivatives, and equity instruments at fair value through profit or loss (FVPL); |
∎ | Equity instruments designated as measured at FVOCI with gains and losses remaining in other comprehensive income (OCI), i.e. without recycling |
∎ | A financial asset will be measured at amortized cost if both of the following conditions are met: |
a. | the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows (held-to-collect); |
b. | the contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI on the principal amount outstanding. |
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Level I: quoted prices (unadjusted) in active markets for identical assets or liabilities that Aegon can access at the measurement date; |
Level II: inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices of identical or similar assets and liabilities) using valuation techniques for which all significant inputs are based on observable market data; and |
Level III: inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) using valuation techniques for which any significant input is not based on observable market data. |
Notes to the consolidated financial statements Note 4 | ||||
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Annual Report on Form 20-F 2023 | 177 |
![]() | About Aegon Governance and risk management Financial information | |||
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Concentration per risk type: Risk exposures are measured per risk type as part of Aegon’s internal economic framework. A risk tolerance framework is in place which sets risk limits per risk type to target desired risk balance and promote diversification across risk types; |
Concentration per counterparty: Risk exposure is measured and risk limits are in place per counterparty as part of the Counterparty Name Limit Policy; and |
Concentration per sector, geography and asset class: Aegon’s investment strategy is translated in investment mandates for its internal and external asset managers. Through these investment mandates limits on sector, geography and asset class are set. Compliance monitoring of the investment mandates is done by the insurance operating companies. |
Notes to the consolidated financial statements Note 4 | ||||
Market risk (note 4.3) |
Equity market risk and other investment risks |
Annual Report on Form 20-F 2023 | 179 |
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2023 | Maximum exposure to credit risk | Cash | Securities | Letters of credit / guaran- tees | Real estate property | Master netting agree- ments | Other | Total collateral | Surplus collateral (or overcol- lateraliza- tion) | Net exposure | ||||||||||||||||||||||||||||||
Debt securities | 55,811 | - | - | 93 | - | - | - | 93 | - | 55,718 | ||||||||||||||||||||||||||||||
Money market and other short-term investments | 8,695 | - | 442 | - | - | - | - | 442 | 24 | 8,277 | ||||||||||||||||||||||||||||||
Loans | 10,183 | 31 | - | 20 | 23,711 | - | - | 23,762 | 13,579 | - | ||||||||||||||||||||||||||||||
Unconsolidated investment funds | 167,411 | - | - | - | - | - | - | - | - | 167,411 | ||||||||||||||||||||||||||||||
Deposits with financial institutes | 2,289 | - | - | - | - | - | - | - | - | 2,289 | ||||||||||||||||||||||||||||||
Other investments | 5,040 | - | - | - | - | - | - | - | - | 5,040 | ||||||||||||||||||||||||||||||
Derivative assets | 1,429 | 832 | 669 | - | - | 373 | - | 1,875 | 550 | 104 | ||||||||||||||||||||||||||||||
Reinsurance assets | 16,608 | - | 13,416 | 82 | - | - | - | 13,498 | - | 3,110 | ||||||||||||||||||||||||||||||
On December 31 | 267,465 | 864 | 14,528 | 194 | 23,711 | 373 | - | 39,669 | 14,153 | 241,949 |
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2021 | Maximum exposure to credit risk | Cash | Securities | Letters of credit / guaran- tees | Real estate property | Master netting agree- ments | Other | Total collateral | Surplus collateral (or overcollater- alization) | Net exposure | ||||||||||||||||||
Debt securities - carried at fair value | 97,195 | - | - | 221 | - | - | - | 221 | - | 96,974 | ||||||||||||||||||
Money market and other short-term investments - carried at fair value | 4,910 | - | 330 | - | - | - | - | 330 | 21 | 4,601 | ||||||||||||||||||
Mortgage loans - carried at amortized cost | 39,991 | 2,684 | - | 32 | 75,412 | - | - | 78,128 | 38,197 | 60 | ||||||||||||||||||
Private loans - carried at amortized cost | 4,883 | 33 | - | - | - | - | - | 33 | - | 4,850 | ||||||||||||||||||
Other loans - carried at amortized cost | 1,949 | - | - | - | - | - | 1,872 | 1,872 | 1,346 | 1,423 | ||||||||||||||||||
Other financial assets - carried at fair value | 4,245 | - | - | - | - | - | - | - | - | 4,245 | ||||||||||||||||||
Derivatives | 8,780 | 2,555 | 107 | - | - | 5,921 | - | 8,583 | 66 | 263 | ||||||||||||||||||
Reinsurance assets | 20,992 | - | 3,784 | 77 | - | - | - | 3,861 | - | 17,131 | ||||||||||||||||||
At December 31 | 182,945 | 5,272 | 4,221 | 330 | 75,412 | 5,921 | 1,872 | 93,028 | 39,630 | 129,547 |
2020 | Maximum exposure to credit risk | Cash | Securities | Letters of credit / guaran- tees | Real estate property | Master netting agree- ments | Other | Total collateral | Surplus collateral (or overcollateral- ization) | Net exposure | ||||||||||||||||||
Debt securities - carried at fair value | 99,350 | - | - | 245 | - | - | - | 245 | - | 99,105 | ||||||||||||||||||
Money market and other short-term investments - carried at fair value | 4,667 | - | 330 | - | - | - | - | 330 | 19 | 4,357 | ||||||||||||||||||
Mortgage loans - carried at amortized cost | 38,244 | 2,685 | - | 60 | 64,028 | - | - | 66,772 | 28,655 | 126 | ||||||||||||||||||
Private loans - carried at amortized cost | 4,358 | 45 | - | - | - | - | - | 45 | - | 4,313 | ||||||||||||||||||
Other loans - carried at amortized cost | 1,917 | - | - | - | - | - | 1,786 | 1,786 | 1,293 | 1,424 | ||||||||||||||||||
Other financial assets - carried at fair value | 3,641 | - | - | - | - | - | - | - | - | 3,641 | ||||||||||||||||||
Derivatives | 13,238 | 4,873 | 60 | 29 | - | 8,373 | - | 13,336 | 135 | 38 | ||||||||||||||||||
Reinsurance assets | 18,910 | - | 3,578 | 117 | - | - | - | 3,694 | - | 15,216 | ||||||||||||||||||
At December 31 | 184,326 | 7,603 | 3,967 | 450 | 64,028 | 8,373 | 1,786 | 86,207 | 30,101 | 128,220 |
2022 | Maximum exposure to credit risk | Cash | Securities | Letters of credit / guaran- tees | Real estate property | Master netting agree- ments | Other | Total collateral | Surplus collateral (or overcol- lateraliza- tion) | Net exposure | ||||||||||||||||||||||||||||||
Debt securities | 59,341 | - | - | 96 | - | - | - | 96 | - | 59,245 | ||||||||||||||||||||||||||||||
Money market and other short-term investments | 6,881 | - | 312 | - | - | - | - | 312 | 23 | 6,592 | ||||||||||||||||||||||||||||||
Loans | 10,419 | 40 | - | 22 | 24,763 | - | - | 24,825 | 14,407 | 1 | ||||||||||||||||||||||||||||||
Unconsolidated investment funds | 154,741 | - | - | - | - | - | - | - | - | 154,741 | ||||||||||||||||||||||||||||||
Deposits with financial institutes | 2,405 | - | - | - | - | - | - | - | - | 2,405 | ||||||||||||||||||||||||||||||
Other investments | 4,618 | - | - | - | 58 | - | - | 58 | 35 | 4,595 | ||||||||||||||||||||||||||||||
Derivative assets | 2,771 | 257 | 426 | - | - | 2,174 | - | 2,858 | 173 | 86 | ||||||||||||||||||||||||||||||
Reinsurance assets | 16,939 | - | 14,162 | 103 | - | - | - | 14,265 | - | 2,675 | ||||||||||||||||||||||||||||||
On December 31 | 258,116 | 297 | 14,900 | 221 | 24,822 | 2,174 | - | 42,414 | 14,638 | 230,341 |
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Notes to the consolidated financial statements Note 4 | ||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
ECL staging | ECL staging | |||||||||||||||||||||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | |||||||||||||||||||||||||||||||||||
Financial assets measured at FVOCI - with recycling | 12-month ECL | Lifetime ECL not credit- impaired | Lifetime ECL credit- impaired | Purchased credit impaired | Total | 12-month ECL | Lifetime ECL not credit- impaired | Lifetime ECL credit- impaired | Purchased credit impaired | Total | ||||||||||||||||||||||||||||||
AAA | 2,961 | - | - | - | 2,961 | 9,562 | - | - | - | 9,562 | ||||||||||||||||||||||||||||||
AA | 9,217 | - | 2 | - | 9,219 | 4,034 | - | - | - | 4,034 | ||||||||||||||||||||||||||||||
A | 18,410 | - | - | - | 18,411 | 18,224 | 10 | 2 | - | 18,235 | ||||||||||||||||||||||||||||||
BBB | 17,534 | 11 | - | 1 | 17,547 | 19,696 | 6 | - | - | 19,702 | ||||||||||||||||||||||||||||||
BB | 899 | 136 | - | - | 1,035 | 1,250 | 172 | 3 | 2 | 1,427 | ||||||||||||||||||||||||||||||
B | 431 | 120 | 3 | - | 554 | 432 | 153 | 5 | - | 590 | ||||||||||||||||||||||||||||||
CCC and lower | 120 | 91 | 319 | 99 | 629 | 76 | 72 | 394 | 123 | 664 | ||||||||||||||||||||||||||||||
Gross carrying amount | 49,571 | 358 | 325 | 100 | 50,354 | 53,273 | 413 | 403 | 125 | 54,214 | ||||||||||||||||||||||||||||||
Expected credit loss | (147 | ) | (25 | ) | (64 | ) | (2 | ) | (238 | ) | (157 | ) | (32 | ) | (86 | ) | (1 | ) | (276 | ) | ||||||||||||||||||||
Total | 49,571 | 358 | 325 | 100 | 50,354 | 53,273 | 413 | 403 | 125 | 54,214 |
2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
ECL staging | ECL staging | |||||||||||||||||||||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | |||||||||||||||||||||||||||||||||||
Loans at amortized cost | 12-month ECL | Lifetime ECL not credit- impaired | Lifetime ECL credit- impaired | Purchased credit impaired | Total | 12-month ECL | Lifetime ECL not credit- impaired | Lifetime ECL credit- impaired | Purchased credit impaired | Total | ||||||||||||||||||||||||||||||
Internal grade 1 | 947 | - | - | - | 947 | 1,484 | - | - | - | 1,484 | ||||||||||||||||||||||||||||||
Internal grade 2 | 3,929 | 2 | - | - | 3,930 | 4,438 | 2 | - | - | 4,440 | ||||||||||||||||||||||||||||||
Internal grade 3 | 4,460 | 24 | - | - | 4,485 | 3,775 | - | - | - | 3,775 | ||||||||||||||||||||||||||||||
Internal grade 4 | 778 | 7 | - | - | 785 | 671 | - | - | - | 671 | ||||||||||||||||||||||||||||||
Internal grade 5 | 33 | 2 | - | - | 35 | 48 | - | - | - | 48 | ||||||||||||||||||||||||||||||
Internal grade 6 | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Internal grade 7 or lower | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Gross carrying amount | 10,147 | 35 | - | - | 10,183 | 10,416 | 2 | - | - | 10,419 | ||||||||||||||||||||||||||||||
Expected credit loss | (24 | ) | (1 | ) | - | - | (26 | ) | (12 | ) | - | - | - | (12 | ) | |||||||||||||||||||||||||
Total | 10,123 | 33 | - | - | 10,156 | 10,404 | 2 | - | - | 10,407 |
Annual Report on Form 20-F 2023 | 181 |
![]() | About Aegon Governance and risk management Financial information | |||
Financial assets designated at FVPL | Debt securities | Money market and other short-term investments | Total | |||||||||||||
Change in fair value attributable to changes in credit risk during the year | 46 | (1 | ) | 45 | ||||||||||||
Cumulative change in fair value attributable to changes in credit risk held on December 31 | 20 | - | 20 |
Financial assets designated at FVPL | Debt securities | Money market and other short-term investments | Total | |||||||||
Change in fair value attributable to changes in credit risk during the year | (24 | ) | - | (24 | ) | |||||||
Cumulative change in fair value attributable to changes in credit risk held on December 31 | (22 | ) | - | (22 | ) |
![]() |
Notes to the consolidated financial statements Note 4 | ||||
Amounts in EUR million | 2021 | 2020 | ||||||
AAA | 900 | 900 | ||||||
AA | 900 | 900 | ||||||
A | 675 | 675 | ||||||
BBB | 450 | 450 | ||||||
BB | 250 | 250 | ||||||
B | 125 | 125 | ||||||
CCC or lower | 50 | 50 |
![]() |
Amounts in EUR million | 2023 | 2022 | ||||||
AAA | 900 | 900 | ||||||
AA | 900 | 900 | ||||||
A | 675 | 675 | ||||||
BBB | 450 | 450 | ||||||
BB | 250 | 250 | ||||||
B | 125 | 125 | ||||||
CCC or lower | 50 | 50 |
Credit rating general account investments, excluding reinsurance assets 2021 | Americas | The Netherlands | United Kingdom | International | ||||||||||||||||||||||||||||
Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | |||||||||||||||||||||||||
AAA | 1,383 | 15,537 | 2,607 | 11,832 | - | 74 | - | 738 | ||||||||||||||||||||||||
AA | 4,219 | 4,438 | 216 | 6,474 | - | 586 | - | 699 | ||||||||||||||||||||||||
A | 3,301 | 20,888 | 128 | 10,636 | - | 384 | 52 | 2,610 | ||||||||||||||||||||||||
BBB | 519 | 21,894 | 1,050 | 4,458 | - | 202 | (4 | ) | 3,311 | |||||||||||||||||||||||
BB | 59 | 1,614 | 44 | 127 | - | 1 | - | 272 | ||||||||||||||||||||||||
B | - | 549 | - | 19 | - | - | 18 | 370 | ||||||||||||||||||||||||
CCC or lower | - | 441 | - | 19 | - | - | - | 13 | ||||||||||||||||||||||||
Assets not rated | 1,868 | 4,257 | 31,137 | 1,418 | - | 644 | 27 | 79 | ||||||||||||||||||||||||
Total | 11,349 | 69,618 | 35,182 | 34,983 | - | 1,893 | 93 | 8,093 | ||||||||||||||||||||||||
Past due and/or impaired assets | 2 | 2,044 | 176 | 17 | - | - | - | 116 | ||||||||||||||||||||||||
At December 31 | 11,352 | 71,662 | 35,358 | 35,000 | - | 1,893 | 93 | 8,208 |
Asset Management | Total 2021 1) | Americas | United Kingdom | International | Asset Management | Total 2023 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit rating general account investments, excluding reinsurance assets 2021 | Amortized cost | Fair value | Amortized cost | Fair value | Total carrying value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | Total carrying value | |||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | - | 295 | 3,989 | 28,476 | 32,465 | 947 | 6,836 | - | 38 | - | 35 | 52 | 123 | 998 | 7,033 | 8,031 | ||||||||||||||||||||||||||||||||||||||||||||||||
AA | - | - | 4,436 | 12,197 | 16,633 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AA | 3,930 | 9,191 | - | 514 | - | 161 | - | - | 3,930 | 9,866 | 13,796 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A | - | - | 3,481 | 34,530 | 38,011 | 4,485 | 19,474 | - | 220 | 1 | 791 | - | - | 4,486 | 20,486 | 24,972 | ||||||||||||||||||||||||||||||||||||||||||||||||
BBB | - | - | 1,564 | 29,866 | 31,431 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BBB | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BBB | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BBB | 785 | 17,679 | - | 124 | - | 466 | - | - | 803 | 18,269 | 19,072 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
BB | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BB | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BB | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BB | - | - | 103 | 2,015 | 2,118 | 33 | 1,084 | - | 1 | - | 41 | - | - | 33 | 1,126 | 1,160 | ||||||||||||||||||||||||||||||||||||||||||||||||
B | - | - | 18 | 938 | 956 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B | 2 | 570 | - | - | - | 9 | - | - | 2 | 579 | 581 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CCC or lower | - | - | - | 473 | 473 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CCC or lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CCC or lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CCC or lower | - | 986 | - | - | - | 6 | - | - | - | 992 | 992 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets not rated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets not rated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets not rated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets not rated | - | 2 | 33,053 | 6,474 | 39,527 | - | 4,444 | - | 797 | - | 4 | - | 1 | - | 5,286 | 5,286 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | - | 296 | 46,644 | 114,968 | 161,613 | 10,182 | 60,264 | - | 1,695 | 1 | 1,514 | 52 | 124 | 10,253 | 63,638 | 73,891 | ||||||||||||||||||||||||||||||||||||||||||||||||
Past due and/or impaired assets | - | - | 178 | 2,176 | 2,355 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ECL on financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ECL on financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ECL on financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ECL on financial assets | (26 | ) | (228 | ) | - | - | - | (10 | ) | - | - | (26 | ) | (238 | ) | (263 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
At December 31 | - | 296 | 46,823 | 117,145 | 163,967 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31, 2023 | 10,156 | 60,264 | - | 1,695 | 1 | 1,514 | 52 | 124 | 10,227 | 63,638 | 73,865 |
1 | Includes investments of Holding and other activities. |
Credit rating general account investments, excluding reinsurance assets 2020 | Americas | The Netherlands | United Kingdom | International | ||||||||||||||||||||||||||||
Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | |||||||||||||||||||||||||
AAA | 1,066 | 15,551 | 1,913 | 14,362 | - | 43 | - | 925 | ||||||||||||||||||||||||
AA | 3,494 | 4,112 | 74 | 7,663 | - | 605 | - | 617 | ||||||||||||||||||||||||
A | 3,369 | 21,741 | 46 | 14,421 | - | 337 | 49 | 2,604 | ||||||||||||||||||||||||
BBB | 631 | 21,049 | 1,098 | 4,031 | - | 173 | (4 | ) | 3,242 | |||||||||||||||||||||||
BB | 56 | 1,847 | 46 | 248 | - | 1 | - | 230 | ||||||||||||||||||||||||
B | - | 611 | - | 100 | - | - | 45 | 302 | ||||||||||||||||||||||||
CCC or lower | - | 556 | - | 15 | - | - | 1 | 12 | ||||||||||||||||||||||||
Assets not rated | 1,775 | 3,360 | 30,492 | 1,464 | - | 848 | 30 | 80 | ||||||||||||||||||||||||
Total | 10,390 | 68,828 | 33,669 | 42,305 | - | 2,008 | 120 | 8,014 | ||||||||||||||||||||||||
Past due and/or impaired assets | 87 | 1,130 | 212 | 14 | - | - | - | 88 | ||||||||||||||||||||||||
At December 31 | 10,477 | 69,958 | 33,882 | 42,319 | - | 2,008 | 120 | 8,102 |
Annual Report on Form 20-F 2023 | 183 |
![]() | ||||
Asset Management | Total 2020 1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit rating general account investments, excluding reinsurance assets 2020 | Amortized cost | Fair value | Amortized cost | Fair value | Total carrying value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Americas | United Kingdom | International | Asset Management | Total 2022 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | Total carrying value | |||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | - | 159 | 2,980 | 31,042 | 34,021 | 1,484 | 12,243 | - | 55 | - | 91 | - | 135 | 1,522 | 12,523 | 14,046 | ||||||||||||||||||||||||||||||||||||||||||||||||
AA | - | 3 | 3,567 | 13,001 | 16,568 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AA | 4,440 | 3,996 | - | 461 | - | 158 | - | - | 4,440 | 4,615 | 9,055 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A | - | 4 | 3,464 | 39,123 | 42,586 | 3,775 | 20,233 | - | 262 | 7 | 921 | - | - | 3,782 | 21,416 | 25,198 | ||||||||||||||||||||||||||||||||||||||||||||||||
BBB | - | 15 | 1,725 | 28,510 | 30,235 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BBB | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BBB | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BBB | 671 | 19,313 | - | 123 | 1 | 763 | - | - | 672 | 20,198 | 20,870 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
BB | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BB | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BB | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BB | - | 16 | 102 | 2,372 | 2,473 | 48 | 1,439 | - | 1 | - | 71 | - | - | 48 | 1,512 | 1,560 | ||||||||||||||||||||||||||||||||||||||||||||||||
B | - | 8 | 45 | 1,022 | 1,067 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B | - | 594 | - | - | - | 13 | - | - | - | 607 | 607 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CCC or lower | - | 2 | 1 | 585 | 586 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CCC or lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CCC or lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CCC or lower | - | 900 | - | - | - | 5 | - | - | - | 905 | 905 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets not rated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets not rated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets not rated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets not rated | - | 1 | 32,336 | 5,984 | 38,320 | - | 4,480 | - | 582 | - | - | - | 1 | - | 5,182 | 5,182 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | - | 208 | 44,219 | 121,637 | 165,856 | 10,417 | 63,200 | - | 1,483 | 9 | 2,021 | - | 136 | 10,464 | 66,959 | 77,423 | ||||||||||||||||||||||||||||||||||||||||||||||||
Past due and/or impaired assets | - | - | 300 | 1,238 | 1,538 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ECL on financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ECL on financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ECL on financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ECL on financial assets | (12 | ) | (264 | ) | - | - | - | (12 | ) | - | - | (12 | ) | (277 | ) | (289 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
At December 31 | - | 208 | 44,519 | 122,875 | 167,394 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31, 2022 | 10,406 | 63,200 | - | 1,483 | 9 | 2,021 | - | 136 | 10,453 | 66,959 | 77,412 |
1 | Includes investments of Holding and other activities. |
Carrying value | 2023 | 2022 | ||||||||||||||
Carrying value 2021 | Carrying value 2020 | |||||||||||||||
AAA | ||||||||||||||||
AAA | ||||||||||||||||
AAA | ||||||||||||||||
AAA | - | - | - | - | ||||||||||||
AA | 9,084 | 9,025 | ||||||||||||||
AA | ||||||||||||||||
AA | ||||||||||||||||
AA | 1,245 | 1,609 | ||||||||||||||
A | ||||||||||||||||
A | ||||||||||||||||
A | ||||||||||||||||
A | 11,087 | 9,430 | 14,089 | 14,322 | ||||||||||||
Below A | 7 | 34 | ||||||||||||||
Below A | ||||||||||||||||
Below A | ||||||||||||||||
Below A | 4 | 5 | ||||||||||||||
Not rated | 813 | 421 | ||||||||||||||
Not rated | ||||||||||||||||
Not rated | ||||||||||||||||
Not rated | 662 | 733 | ||||||||||||||
At December 31 | 20,992 | 18,910 | ||||||||||||||
On December 31 | 16,000 | 16,669 |
Credit risk concentrations – debt securities and money market investments 2021 | Americas | The Netherlands | United Kingdom | Interna- tional | Asset Management | Total 2021 1) | Of which past due and/or impaired assets | |||||||||||||||||||||||||||||||||||||||||||||
Credit risk concentrations – debt securities and money market investments | Americas | United Kingdom | International | Asset Management | Total 2023 1) | Of which past due and / or impaired assets | ||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities (RMBSs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities (RMBSs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities (RMBSs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities (RMBSs) | 1,854 | 106 | - | 20 | 4 | 1,984 | 611 | 933 | - | - | - | 933 | (13 | ) | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities (CMBSs) | 3,005 | 3 | 122 | 517 | - | 3,647 | 13 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities (CMBSs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities (CMBSs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities (CMBSs) | 2,216 | 73 | 34 | - | 2,323 | (17 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | 265 | 1,576 | - | 37 | - | 1,878 | 2 | 557 | - | 3 | - | 560 | - | |||||||||||||||||||||||||||||||||||||||
ABSs – Other | 1,972 | 1 | 74 | 267 | 8 | 2,321 | 27 | |||||||||||||||||||||||||||||||||||||||||||||
ABSs – Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||
ABSs – Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||
ABSs – Other | 2,905 | 53 | 28 | 52 | 3,037 | (9 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Financial - Banking | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial - Banking | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial - Banking | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial - Banking | 5,597 | 3,146 | 177 | 1,035 | - | 9,956 | 9 | 3,412 | 173 | 201 | - | 3,786 | (14 | ) | ||||||||||||||||||||||||||||||||||||||
Financial - Other | 9,916 | 854 | 68 | 783 | 257 | 11,877 | 175 | |||||||||||||||||||||||||||||||||||||||||||||
Financial - Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial - Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial - Other | 11,909 | 38 | 289 | 97 | 12,332 | (33 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Capital goods and other industry | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods and other industry | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods and other industry | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods and other industry | 4,048 | 1,078 | 33 | 501 | - | 5,661 | 144 | 3,443 | 24 | 143 | - | 3,609 | (23 | ) | ||||||||||||||||||||||||||||||||||||||
Communications & Technology | 6,190 | 1,561 | 3 | 732 | - | 8,485 | 411 | |||||||||||||||||||||||||||||||||||||||||||||
Communications & Technology | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Communications & Technology | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Communications & Technology | 4,242 | 2 | 140 | - | 4,384 | (30 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Consumer cyclical | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer cyclical | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer cyclical | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer cyclical | 3,159 | 741 | 43 | 342 | - | 4,286 | 152 | 3,197 | 29 | 85 | - | 3,311 | (20 | ) | ||||||||||||||||||||||||||||||||||||||
Consumer non-cyclical | 6,138 | 1,900 | 121 | 825 | - | 8,984 | 177 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer non-cyclical | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer non-cyclical | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer non-cyclical | 5,661 | 74 | 111 | - | 5,846 | (24 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Energy | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | 4,177 | 143 | 26 | 635 | - | 4,980 | 91 | 2,821 | 20 | 55 | - | 2,896 | (19 | ) | ||||||||||||||||||||||||||||||||||||||
Transportation | 2,151 | 815 | - | 197 | - | 3,163 | 130 | |||||||||||||||||||||||||||||||||||||||||||||
Transportation | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Transportation | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Transportation | 1,633 | - | 30 | - | 1,663 | (6 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Utility | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Utility | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Utility | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Utility | 5,356 | 707 | 105 | 590 | - | 6,757 | 153 | 4,190 | 73 | 75 | - | 4,338 | (10 | ) | ||||||||||||||||||||||||||||||||||||||
Government bonds | 11,663 | 14,321 | 477 | 1,649 | 18 | 28,127 | 4 | |||||||||||||||||||||||||||||||||||||||||||||
Government bonds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Government bonds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Government bonds | 7,349 | 338 | 265 | 17 | 7,969 | (20 | ) | |||||||||||||||||||||||||||||||||||||||||||||
At December 31 | 65,490 | 26,951 | 1,248 | 8,130 | 286 | 102,105 | 2,101 | |||||||||||||||||||||||||||||||||||||||||||||
On December 31, 2023 | 54,467 | 898 | 1,458 | 166 | 56,988 | (237 | ) |
1 | Includes investments of Holding and other activities. |
Notes to the consolidated financial statements Note 4 | ||||
Credit risk concentrations – debt securities and money market investments | Americas | United Kingdom | International | Asset Management | Total 2022 1) | Of which past due and / or impaired assets | ||||||||||||||||||
Residential mortgage-backed securities (RMBSs) | 1,136 | - | - | 5 | 1,141 | (9 | ) | |||||||||||||||||
Commercial mortgage-backed securities (CMBSs) | 2,707 | 94 | 37 | - | 2,838 | - | ||||||||||||||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | 438 | - | 3 | - | 440 | - | ||||||||||||||||||
ABSs – Other | 2,400 | 53 | 15 | 9 | 2,478 | (6 | ) | |||||||||||||||||
Financial - Banking | 3,957 | 168 | 319 | - | 4,444 | (14 | ) | |||||||||||||||||
Financial - Other | 10,778 | 36 | 353 | 96 | 11,264 | (31 | ) | |||||||||||||||||
Capital goods and other industry | 3,769 | 22 | 132 | - | 3,923 | (25 | ) | |||||||||||||||||
Communications & Technology | 4,658 | 2 | 171 | - | 4,831 | (51 | ) | |||||||||||||||||
Consumer cyclical | 3,742 | 28 | 106 | - | 3,877 | (25 | ) | |||||||||||||||||
Consumer non-cyclical | 5,445 | 85 | 144 | - | 5,674 | (47 | ) | |||||||||||||||||
Energy | 3,205 | 19 | 102 | - | 3,326 | (23 | ) | |||||||||||||||||
Transportation | 1,728 | - | 43 | - | 1,771 | (6 | ) | |||||||||||||||||
Utility | 4,319 | 69 | 80 | - | 4,469 | (11 | ) | |||||||||||||||||
Government bonds | 7,962 | 323 | 488 | 17 | 8,790 | (26 | ) | |||||||||||||||||
On December 31, 2022 | 56,243 | 901 | 1,994 | 128 | 59,265 | (276 | ) |
1 | Includes investments of Holding and other activities. |
![]() |
Credit risk concentrations – Government bonds per country of risk 2021 | Americas | The Netherlands | United Kingdom | International | Asset Management | Total 2021 1) | ||||||||||||||||||||||||||||||||||||||
Credit risk concentrations – Government bonds per country of risk | Americas | United Kingdom | International | Asset Management | Total 2023 1) | |||||||||||||||||||||||||||||||||||||||
United States | ||||||||||||||||||||||||||||||||||||||||||||
United States | ||||||||||||||||||||||||||||||||||||||||||||
United States | ||||||||||||||||||||||||||||||||||||||||||||
United States | 10,897 | - | - | 463 | - | 11,360 | 6,632 | - | 62 | - | 6,694 | |||||||||||||||||||||||||||||||||
Netherlands | - | 4,691 | - | - | - | 4,691 | ||||||||||||||||||||||||||||||||||||||
Netherlands | ||||||||||||||||||||||||||||||||||||||||||||
Netherlands | ||||||||||||||||||||||||||||||||||||||||||||
Netherlands | - | - | 2 | - | 2 | |||||||||||||||||||||||||||||||||||||||
United Kingdom | ||||||||||||||||||||||||||||||||||||||||||||
United Kingdom | ||||||||||||||||||||||||||||||||||||||||||||
United Kingdom | ||||||||||||||||||||||||||||||||||||||||||||
United Kingdom | - | 3 | 413 | - | 18 | 433 | - | 289 | - | 17 | 307 | |||||||||||||||||||||||||||||||||
Austria | - | 1,175 | - | 6 | - | 1,181 | ||||||||||||||||||||||||||||||||||||||
Austria | ||||||||||||||||||||||||||||||||||||||||||||
Austria | ||||||||||||||||||||||||||||||||||||||||||||
Austria | - | - | 10 | - | 10 | |||||||||||||||||||||||||||||||||||||||
Belgium | - | 1,132 | - | 5 | - | 1,137 | ||||||||||||||||||||||||||||||||||||||
Finland | - | 41 | - | - | - | 41 | ||||||||||||||||||||||||||||||||||||||
Belgium | ||||||||||||||||||||||||||||||||||||||||||||
Belgium | ||||||||||||||||||||||||||||||||||||||||||||
Belgium | - | - | 4 | - | 4 | |||||||||||||||||||||||||||||||||||||||
France | - | 1,618 | 34 | 2 | - | 1,654 | ||||||||||||||||||||||||||||||||||||||
France | ||||||||||||||||||||||||||||||||||||||||||||
France | ||||||||||||||||||||||||||||||||||||||||||||
France | - | 28 | 8 | - | 36 | |||||||||||||||||||||||||||||||||||||||
Germany | - | 4,309 | - | - | - | 4,309 | ||||||||||||||||||||||||||||||||||||||
Hungary | ||||||||||||||||||||||||||||||||||||||||||||
Hungary | ||||||||||||||||||||||||||||||||||||||||||||
Hungary | ||||||||||||||||||||||||||||||||||||||||||||
Hungary | - | - | - | 302 | - | 302 | 20 | - | 4 | - | 24 | |||||||||||||||||||||||||||||||||
Indonesia | 75 | 39 | - | 28 | - | 141 | ||||||||||||||||||||||||||||||||||||||
Indonesia | ||||||||||||||||||||||||||||||||||||||||||||
Indonesia | ||||||||||||||||||||||||||||||||||||||||||||
Indonesia | 71 | - | - | - | 71 | |||||||||||||||||||||||||||||||||||||||
Luxembourg | ||||||||||||||||||||||||||||||||||||||||||||
Luxembourg | ||||||||||||||||||||||||||||||||||||||||||||
Luxembourg | ||||||||||||||||||||||||||||||||||||||||||||
Luxembourg | - | 873 | - | 1 | - | 875 | - | - | 1 | - | 1 | |||||||||||||||||||||||||||||||||
Spain | - | 144 | - | 197 | - | 341 | ||||||||||||||||||||||||||||||||||||||
Spain | ||||||||||||||||||||||||||||||||||||||||||||
Spain | ||||||||||||||||||||||||||||||||||||||||||||
Spain | - | - | 153 | - | 153 | |||||||||||||||||||||||||||||||||||||||
Rest of Europe | ||||||||||||||||||||||||||||||||||||||||||||
Rest of Europe | ||||||||||||||||||||||||||||||||||||||||||||
Rest of Europe | ||||||||||||||||||||||||||||||||||||||||||||
Rest of Europe | 85 | 65 | - | 503 | - | 654 | 46 | - | 13 | - | 58 | |||||||||||||||||||||||||||||||||
Rest of world | 587 | 230 | 31 | 131 | - | 979 | ||||||||||||||||||||||||||||||||||||||
Rest of world | ||||||||||||||||||||||||||||||||||||||||||||
Rest of world | ||||||||||||||||||||||||||||||||||||||||||||
Rest of world | 581 | 21 | 8 | - | 610 | |||||||||||||||||||||||||||||||||||||||
Supranational | 19 | - | - | 11 | - | 29 | ||||||||||||||||||||||||||||||||||||||
At December 31 | 11,663 | 14,321 | 477 | 1,649 | 18 | 28,127 | ||||||||||||||||||||||||||||||||||||||
On December 31, 2023 | 7,349 | 338 | 265 | 17 | 7,969 |
1 | Includes investments of Holding and other activities. |
Credit risk concentrations – Credit rating 2021 2) | Government bonds | Corporate bonds | RMBSs CMBSs ABSs | Other | Total 2021 1) | |||||||||||||||
AAA | 19,740 | 754 | 5,779 | 1,882 | 28,155 | |||||||||||||||
AA | 5,476 | 4,099 | 1,125 | - | 10,700 | |||||||||||||||
A | 1,228 | 25,470 | 1,648 | - | 28,345 | |||||||||||||||
BBB | 1,094 | 28,855 | 338 | - | 30,286 | |||||||||||||||
BB | 238 | 1,700 | 63 | - | 2,001 | |||||||||||||||
B | 348 | 553 | 26 | - | 927 | |||||||||||||||
CCC or lower | 5 | 183 | 826 | - | 1,014 | |||||||||||||||
Assets not rated | - | 3 | 24 | 649 | 676 | |||||||||||||||
At December 31 | 28,127 | 61,617 | 9,830 | 2,531 | 102,105 |
Credit risk concentrations – Government bonds per country of risk | Americas | United Kingdom | International | Asset Management | Total 2022 1) | |||||||||||||||
United States | 7,209 | - | 80 | - | 7,290 | |||||||||||||||
Netherlands | - | - | - | - | - | |||||||||||||||
United Kingdom | - | 275 | - | 17 | 292 | |||||||||||||||
Austria | - | - | 3 | - | 3 | |||||||||||||||
Belgium | - | - | 3 | - | 3 | |||||||||||||||
France | - | 27 | 2 | - | 29 | |||||||||||||||
Hungary | 18 | - | 4 | - | 22 | |||||||||||||||
Indonesia | 82 | - | - | - | 82 | |||||||||||||||
Luxembourg | - | - | 1 | - | 1 | |||||||||||||||
Spain | - | - | 152 | - | 152 | |||||||||||||||
Rest of Europe | 48 | - | 229 | - | 277 | |||||||||||||||
Rest of world | 604 | 21 | 13 | - | 638 | |||||||||||||||
On December 31, 2022 | 7,962 | 323 | 488 | 17 | 8,790 |
1 | Includes investments of Holding and other activities. |
Annual Report on Form 20-F 2023 | 185 |
![]() | About Aegon Governance and risk management Financial information | |||
Government Bonds | Corporate bonds | RMBSs CMBSs ABSs | Other | Total 2023 1) | ||||||||||||||||
AAA | 166 | 503 | 2,462 | 3,915 | 7,046 | |||||||||||||||
AA | 6,444 | 2,262 | 1,160 | - | 9,866 | |||||||||||||||
A | 723 | 16,352 | 2,101 | - | 19,176 | |||||||||||||||
BBB | 354 | 17,408 | 404 | - | 18,165 | |||||||||||||||
BB | 205 | 838 | 78 | - | 1,121 | |||||||||||||||
B | 69 | 496 | 30 | - | 596 | |||||||||||||||
CCC or lower | 9 | 245 | 618 | - | 872 | |||||||||||||||
Assets not rated | - | 2 | - | 144 | 147 | |||||||||||||||
On December 31, 2023 | 7,969 | 38,106 | 6,853 | 4,059 | 56,988 |
1 | Includes investments of Holding and other activities. |
2 | CNLP Ratings are used and are the lower of the Barclay’s Rating and the Internal Rating with the Barclay’s rating being a blended rating of S&P, Fitch, and Moody’s. |
Credit risk concentrations – debt securities and money market investments 2020 | Americas | The Netherlands | United Kingdom | International | Asset Management | Total 2020 1) | Of which past due and/or impaired assets | |||||||||||||||||||||
Residential mortgage-backed securities (RMBSs) | 2,317 | 165 | - | 80 | 3 | 2,565 | 736 | |||||||||||||||||||||
Commercial mortgage-backed securities (CMBSs) | 2,970 | 12 | 122 | 495 | - | 3,599 | 9 | |||||||||||||||||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | 422 | 1,703 | - | 35 | - | 2,159 | 1 | |||||||||||||||||||||
ABSs – Other | 1,584 | 11 | 74 | 294 | 2 | 1,965 | 9 | |||||||||||||||||||||
Financial - Banking | 6,144 | 4,520 | 164 | 1,034 | 2 | 11,863 | 9 | |||||||||||||||||||||
Financial - Other | 9,080 | 706 | 78 | 744 | 135 | 10,760 | 35 | |||||||||||||||||||||
Capital goods and other industry | 3,968 | 1,182 | 18 | 446 | 4 | 5,618 | 41 | |||||||||||||||||||||
Communications & Technology | 5,736 | 1,129 | 3 | 701 | 1 | 7,570 | 119 | |||||||||||||||||||||
Consumer cyclical | 3,112 | 999 | 43 | 368 | - | 4,522 | 30 | |||||||||||||||||||||
Consumer non-cyclical | 6,200 | 1,773 | 120 | 815 | 1 | 8,909 | 32 | |||||||||||||||||||||
Energy | 3,852 | 287 | 27 | 545 | 4 | 4,715 | 12 | |||||||||||||||||||||
Transportation | 2,202 | 784 | - | 197 | 1 | 3,183 | 21 | |||||||||||||||||||||
Utility | 4,872 | 401 | 78 | 610 | - | 5,960 | 143 | |||||||||||||||||||||
Government bonds | 11,282 | 17,208 | 434 | 1,658 | 46 | 30,627 | 4 | |||||||||||||||||||||
At December 31 | 63,739 | 30,880 | 1,160 | 8,022 | 199 | 104,018 | 1,200 |
Government Bonds | Corporate bonds | RMBSs CMBSs ABSs | Other | Total 2022 1) | ||||||||||||||||
AAA | 5,980 | 724 | 2,997 | 2,780 | 12,482 | |||||||||||||||
AA | 1,243 | 2,484 | 815 | - | 4,541 | |||||||||||||||
A | 753 | 16,180 | 1,960 | - | 18,894 | |||||||||||||||
BBB | 538 | 19,312 | 306 | - | 20,156 | |||||||||||||||
BB | 206 | 1,204 | 102 | - | 1,513 | |||||||||||||||
B | 65 | 519 | 23 | - | 607 | |||||||||||||||
CCC or lower | 4 | 207 | 694 | - | 905 | |||||||||||||||
Assets not rated | - | 15 | - | 152 | 167 | |||||||||||||||
On December 31, 2022 2) | 8,790 | 40,645 | 6,897 | 2,933 | 59,265 |
1 |
![]() |
Credit risk concentrations – Government bonds per country of risk 2020 | Americas | The Netherlands | United Kingdom | International | Asset Management | Total 2020 1) | ||||||||||||||||||
United States | 10,623 | 61 | - | 503 | 2 | 11,189 | ||||||||||||||||||
Netherlands | - | 6,505 | - | - | - | 6,505 | ||||||||||||||||||
United Kingdom | - | 3 | 368 | - | 17 | 387 | ||||||||||||||||||
Austria | - | 1,318 | - | 9 | - | 1,326 | ||||||||||||||||||
Belgium | - | 1,255 | - | 5 | - | 1,260 | ||||||||||||||||||
Finland | - | 42 | - | - | - | 42 | ||||||||||||||||||
France | - | 1,779 | 34 | 3 | - | 1,816 | ||||||||||||||||||
Germany | - | 4,869 | - | - | - | 4,869 | ||||||||||||||||||
Hungary | 2 | - | - | 375 | 1 | 378 | ||||||||||||||||||
Luxembourg | - | 950 | - | 1 | - | 951 | ||||||||||||||||||
Spain | - | 146 | - | 208 | - | 354 | ||||||||||||||||||
Rest of Europe | 87 | 165 | - | 434 | 3 | 689 | ||||||||||||||||||
Rest of world | 567 | 115 | 32 | 115 | 24 | 854 | ||||||||||||||||||
Supranational | 3 | - | - | 4 | - | 7 | ||||||||||||||||||
At December 31 | 11,282 | 17,208 | 434 | 1,658 | 46 | 30,627 |
Credit risk concentrations – Credit rating 2020 2) | Government bonds | Corporate bonds | RMBSs CMBSs ABSs | Other | Total 2020 1) | |||||||||||||||
AAA | 22,335 | 766 | 6,256 | 1,585 | 30,942 | |||||||||||||||
AA | 5,657 | 4,181 | 1,352 | 0 | 11,190 | |||||||||||||||
A | 1,056 | 26,438 | 1,224 | - | 28,718 | |||||||||||||||
BBB | 1,175 | 26,769 | 320 | - | 28,264 | |||||||||||||||
BB | 90 | 2,055 | 133 | - | 2,279 | |||||||||||||||
B | 308 | 639 | 53 | - | 1,000 | |||||||||||||||
CCC or lower | 6 | 282 | 949 | - | 1,237 | |||||||||||||||
Assets not rated | - | 2 | 2 | 385 | 388 | |||||||||||||||
At December 31 | 30,627 | 61,132 | 10,289 | 1,970 | 104,018 |
Includes investments of Holding and other activities. |
2 | CNLP Ratings are used and are the lower of the Barclay’s Rating and the Internal Rating with the Barclay’s rating being a blended rating of S&P, Fitch, and Moody’s. |
Credit risk concentrations – mortgage loans | Americas | United Kingdom | International | Asset Management | Total 2023 | Of which past due and / or impaired assets | ||||||||||||||||||
Agricultural | 46 | - | - | - | 46 | - | ||||||||||||||||||
Apartment | 5,365 | - | - | - | 5,365 | (10 | ) | |||||||||||||||||
Industrial | 410 | - | - | - | 410 | - | ||||||||||||||||||
Office | 1,300 | - | - | - | 1,300 | (14 | ) | |||||||||||||||||
Retail | 1,372 | - | - | - | 1,372 | (1 | ) | |||||||||||||||||
Other commercial | 1,663 | - | 1 | - | 1,664 | - | ||||||||||||||||||
On December 31, 2023 | 10,156 | - | 1 | - | 10,156 | (26 | ) |
Credit risk concentrations – mortgage loans 2021 | Americas | The Netherlands | United Kingdom | International | Asset Management | Total 2021 | Of which past due and/or impaired assets | |||||||||||||||||||||||||||||||||||||||||||||
Credit risk concentrations – mortgage loans | Americas | United Kingdom | International | Asset Management | Total 2022 | Of which past due and / or impaired assets | ||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | 59 | - | - | - | - | 59 | - | 49 | - | - | - | 49 | - | |||||||||||||||||||||||||||||||||||||||
Apartment | 5,085 | - | - | - | - | 5,085 | 2 | |||||||||||||||||||||||||||||||||||||||||||||
Apartment | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Apartment | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Apartment | 5,517 | - | - | - | 5,517 | (4 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | 1,349 | - | - | - | - | 1,349 | - | 402 | - | - | - | 402 | - | |||||||||||||||||||||||||||||||||||||||
Office | 1,560 | - | - | - | - | 1,560 | - | |||||||||||||||||||||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Office | 1,515 | - | - | - | 1,515 | (7 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | 1,425 | 6 | - | - | - | 1,432 | - | 1,465 | - | - | - | 1,465 | (1 | ) | ||||||||||||||||||||||||||||||||||||||
Other commercial | - | 23 | - | - | - | 23 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
Other commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other commercial | 1,456 | - | 1 | - | 1,457 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Residential | 6 | 30,476 | - | 1 | - | 30,483 | 139 | |||||||||||||||||||||||||||||||||||||||||||||
At December 31 | 9,485 | 30,505 | - | 1 | - | 39,991 | 142 | |||||||||||||||||||||||||||||||||||||||||||||
On December 31, 2022 | 10,406 | - | 1 | - | 10,406 | (12 | ) |
Notes to the consolidated financial statements Note 4 | ||||
Credit risk concentrations – mortgage loans 2020 | Americas | The Netherlands | United Kingdom | International | Asset Management | Total 2020 | Of which past due and/or impaired assets | |||||||||||||||||||||
Agricultural | 59 | - | - | - | - | 59 | - | |||||||||||||||||||||
Apartment | 4,169 | - | - | - | - | 4,169 | 86 | |||||||||||||||||||||
Industrial | 1,240 | - | - | - | - | 1,240 | - | |||||||||||||||||||||
Office | 1,624 | - | - | - | - | 1,625 | - | |||||||||||||||||||||
Retail | 1,383 | 7 | - | - | - | 1,390 | 1 | |||||||||||||||||||||
Other commercial | 223 | 25 | - | - | - | 248 | 1 | |||||||||||||||||||||
Residential | 8 | 29,505 | - | 1 | - | 29,514 | 173 | |||||||||||||||||||||
At December 31 | 8,706 | 29,537 | - | 1 | - | 38,244 | 261 |
Total income for the year ended December 31, 2023 | December 31, 2023 | |||||||||||||||||||||||||||||||
Total result 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||
2021 | Interest income | Total gains and losses on sale of assets | Total | Investments | ||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||
2023 | Interest income | Total gains and losses on sale of assets | Total | Investments | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 83 | (28 | ) | 55 | 1,980 | 67 | (15 | ) | 52 | 933 | ||||||||||||||||||||||
Commercial mortgage-backed securities | 113 | (31 | ) | 82 | 3,647 | |||||||||||||||||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 92 | 12 | 105 | 2,323 | ||||||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||||||||
Asset-backed securities | 29 | 0 | 29 | 1,878 | 40 | 14 | 54 | 560 | ||||||||||||||||||||||||
ABSs - Other | 70 | (11 | ) | 59 | 2,323 | |||||||||||||||||||||||||||
ABSs - Other | ||||||||||||||||||||||||||||||||
ABSs - Other | ||||||||||||||||||||||||||||||||
ABSs - Other | 134 | 57 | 191 | 3,037 | ||||||||||||||||||||||||||||
Total | 295 | (69 | ) | 226 | 9,829 | 334 | 68 | 402 | 6,853 |
Total income for the year ended December 31, 2022 | December 31, 2022 | |||||||||||||||
2022 | Interest income | Total gains and losses on sale of assets | Total | Investments | ||||||||||||
Residential mortgage-backed securities | 104 | 26 | 130 | 1,141 | ||||||||||||
Commercial mortgage-backed securities | 120 | (723 | ) | (603 | ) | 2,838 | ||||||||||
Asset-backed securities | 25 | (34 | ) | (9 | ) | 440 | ||||||||||
ABSs - Other | 92 | (416 | ) | (324 | ) | 2,478 | ||||||||||
Total | 341 | (1,148 | ) | (807 | ) | 6,897 |
Annual Report on Form 20-F 2023 | 187 |
![]() | Financial information | |||
∎ | a financial |
∎ | if a significant increase in credit risk (“SICR”) since initial recognition is identified, the financial instrument is moved to “Stage 2” but is not yet deemed to be credit-impaired (see “Significant increase in credit risk” for further details); |
∎ | if the financial instrument is credit-impaired, the financial instrument is then moved to “Stage 3”. |
Total result 2020 | December 31, 2020 | |||||||||||||||
2020 | Interest income | Total gains and losses on sale of assets | Total | Investments | ||||||||||||
Residential mortgage-backed securities | 120 | 25 | 144 | 2,565 | ||||||||||||
Commercial mortgage-backed securities | 128 | 92 | 220 | 3,599 | ||||||||||||
Asset-backed securities | 38 | (5 | ) | 34 | 2,159 | |||||||||||
ABSs - Other | 79 | 104 | 183 | 1,965 | ||||||||||||
Total | 366 | 215 | 581 | 10,289 |
Stage 1 Impaired | Stage 2 Under-performing | Stage 3 Non-performing | Purchased or Originated Credit Impared (POCI) | |||||
ECL | 12 month ECL | Lifetime ECL | Lifetime ECL | Lifetime ECL | ||||
Provision Trigger | n.a. | Quantitative and Qualitative Triggers | Qualitative Triggers | Qualitative Triggers | ||||
Days Past Due (“DPD”) Backstop | Up to date and early arrears (< 30 DPD) | > 30 DPD (rebuttable presumption) | > 90 DPD (rebuttable presumption) | n.a. | ||||
Interest Income | Interest calculated on gross carrying amount | Interest calculated on gross carrying amount | Interest calculated on net carrying amount | Interest calculated on net carrying amount using a credit-adjusted effective interest rate |
1 | n.a. in above table should be read as “not applicable”. |
∎ | evaluating a range of possible outcomes; |
∎ | use reasonable and supportable information available without undue cost and effort about past events; |
∎ | current conditions; and |
∎ | forecasts of future economic conditions. |
2021 | Amortized cost | Unrealized gains | Unrealized losses | Total fair value | Fair value of instruments with unrealized gains | Fair value of instruments with unrealized losses | ||||||||||||||||||
Debt securities, money market instruments and other | ||||||||||||||||||||||||
United States government | 8,942 | 2,386 | (11 | ) | 11,317 | 10,938 | 379 | |||||||||||||||||
Dutch government | 3,456 | 1,238 | (0 | ) | 4,694 | 4,688 | 6 | |||||||||||||||||
Other government | 9,060 | 2,794 | (84 | ) | 11,769 | 10,414 | 1,356 | |||||||||||||||||
Mortgage-backed securities | 5,265 | 372 | (56 | ) | 5,581 | 3,832 | 1,749 | |||||||||||||||||
Asset-backed securities | 4,088 | 118 | (16 | ) | 4,189 | 2,334 | 1,855 | |||||||||||||||||
Corporate | 50,953 | 5,738 | (343 | ) | 56,348 | 45,363 | 10,985 | |||||||||||||||||
Money market investments | 4,790 | 0 | (0 | ) | 4,790 | 4,547 | 243 | |||||||||||||||||
Other | 876 | 34 | (66 | ) | 844 | 519 | 325 | |||||||||||||||||
Total | 87,431 | 12,679 | (576 | ) | 99,533 | 82,635 | 16,898 | |||||||||||||||||
Of which held by Aegon Americas and NL | 78,468 | 11,865 | (475 | ) | 89,859 | 74,954 | 14,905 |
2020 | Amortized cost | Unrealized gains | Unrealized losses | Total fair value | Fair value of instruments with unrealized gains | Fair value of instruments with unrealized losses | ||||||||||||||||||
Debt securities, money market instruments and other | ||||||||||||||||||||||||
United States government | 8,336 | 2,608 | (9 | ) | 10,935 | 10,661 | 274 | |||||||||||||||||
Dutch government | 4,769 | 1,736 | - | 6,505 | 6,502 | 3 | ||||||||||||||||||
Other government | 9,085 | 3,660 | (8 | ) | 12,736 | 12,465 | 271 | |||||||||||||||||
Mortgage-backed securities | 5,678 | 482 | (69 | ) | 6,092 | 5,314 | 777 | |||||||||||||||||
Asset-backed securities | 3,980 | 158 | (17 | ) | 4,121 | 2,789 | 1,332 | |||||||||||||||||
Corporate | 45,986 | 7,404 | (98 | ) | 53,292 | 51,252 | 2,039 | |||||||||||||||||
Money market investments | 4,559 | - | (1 | ) | 4,558 | 4,136 | 422 | |||||||||||||||||
Other | 1,032 | 39 | (75 | ) | 996 | 616 | 380 | |||||||||||||||||
Total | 83,426 | 16,087 | (277 | ) | 99,235 | 93,736 | 5,499 | |||||||||||||||||
Of which held by Aegon Americas and NL | 74,880 | 14,938 | (249 | ) | 89,569 | 84,593 | 4,976 |
Notes to the consolidated financial statements Note 4 | ||||
Asset class | Quantitative criteria | Qualitative criteria | Backstop criteria | |||||||
Commercial mortgages | Relative change in Forward-in-Time Probability of Default | None | 60 days past due backstop | |||||||
Private loans | Relative changes in rating | Watchlist approach | No other backstop applied | |||||||
Debt securities | Relative changes in rating | Watchlist approach | No other backstop applied | |||||||
Structured finance | Relative changes in rating | Watchlist approach | 30 days past due backstop | |||||||
Deposits with financial institutions | Relative changes in rating | Watchlist approach | No other backstop applied | |||||||
Loan commitments | Defined as for the respective loans to which the commitment relates | |||||||||
Financial guarantees | Defined as for the respective loans to which the commitment relates |
∎ | The relative threshold measures the relative increase in credit risk since origination. |
∎ | The absolute threshold defines a stage for each rating and is mainly used when the rating at origination is not available or when an instrument is already in default. |
∎ | A PD-based statistical analysis is performed to determine an optimal PD threshold that provides the best predictor for default; |
∎ | The PD-based thresholds are translated in rating-based rules, which are more intuitive and practically applicable. |
Annual Report on Form 20-F 2023 | 189 |
![]() | About Aegon Governance and risk management Financial information | |||
PD range 2023 | Minimum | Maximum | ||||||
AAA | 0.0002 | 0.0024 | ||||||
AA | 0.0003 | 0.0037 | ||||||
A | 0.0007 | 0.0057 | ||||||
BBB | 0.0020 | 0.0085 | ||||||
BB | 0.0055 | 0.0085 | ||||||
B | 0.0138 | 0.0308 | ||||||
CCC or lower | 0.0205 | 1.0000 |
PD range 2022 | Minimum | Maximum | ||||||||||
AAA | 0.0003 | 0.0016 | ||||||||||
AA | 0.0004 | 0.0029 | ||||||||||
A | 0.0011 | 0.0051 | ||||||||||
BBB | 0.0030 | 0.0088 | ||||||||||
BB | 0.0081 | 0.0172 | ||||||||||
B | 0.0160 | 0.0436 | ||||||||||
CCC or lower | 0.0279 | 1.0000 |
∎ | The fair value either drops to 80% and below the (amortized) cost price and stays there for six months; or |
∎ | The fair value falls by 20% over 3 months; or |
∎ | The fair value falls to 60% and below the (amortized) cost price. |
Notes to the consolidated financial statements Note 4 | ||||
Asset class | Quantitative criteria | Qualitative criteria | ||||
Commercial mortgages | 90 days past due backstop | Foreclosure Sale at material credit-related economic loss | ||||
Debt securities and private loans | 5 days past due backstop | Rating falling to “D” (external or internal) Breach of significant covenants without reasonably supportable waiver obtained Distressed restructuring taking place Bankruptcy or an equivalent of an injunction for the obligor was filed Obligor was classified as default internally | ||||
Deposits with financial institution | 5 days past due backstop | Rating falling to “D” (external or internal) Breach of significant covenants without reasonably supportable waiver obtained Distressed restructuring taking place Bankruptcy or an equivalent of an injunction for the obligor was filed Obligor was classified as default internally | ||||
Structured securities | 90 days past due backstop | Rating falling to “D” (external or internal) Loss coverage ratio (Ratio of credit-related losses to the par value of a debt security) is below 1 | ||||
Receivables | 90 days past due backstop | |||||
Loan commitments | Defined as for the respective loans to which the commitment relates | Defined as for the respective loans to which the commitment relates | ||||
Financial guarantee contracts | Defined as for the respective exposures to which the financial guarantee relates | Defined as for the respective exposures to which the financial guarantee relates |
Annual Report on Form 20-F 2023 | 191 |
![]() | About Aegon Governance and risk management Financial information | |||
∎ | a borrower’s sources of recurring income are no longer available to meet the payments of instalments; |
∎ | there are justified concerns about a borrower’s future ability to generate stable and sufficient cash flows; |
∎ | the borrower’s overall leverage level has significantly increased beyond applicable limits or there are justified expectations of such changes to leverage; |
∎ | for the exposures to an individual: default of a company fully owned by a single individual where this individual provided the institution with a personal guarantee for all obligations of a company; |
∎ | material fraud; or |
∎ | death of a client. |
∎ | The PD represents the likelihood of a borrower defaulting on its financial obligation (as per “Definition of default and credit-impaired” above), either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation. |
∎ | EAD is based on the amounts the Group expects to be owed at the time of default. |
∎ | Loss Given Default represents Aegon’s expectation of the extent of loss on a defaulted exposure. LGD varies by type of counterparty, type and seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at the time of default. |
Notes to the consolidated financial statements Note 4 | ||||
Economic variable assumptions, December 31, 2023 | 2024 | 2025 | 2026 | 2027 | Units | |||||||||||||||
Interest rates | Base | 4.11 | 4.04 | 4.02 | 4.03 | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) ) | ||||||||||||||
Interest rates | Upside | 4.21 | 4.13 | 4.02 | 4.03 | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) ) | ||||||||||||||
Interest rates | Downside | 2.31 | 3.24 | 3.71 | 3.89 | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) ) | ||||||||||||||
Unemployment rate | Base | 4.03 | 4.06 | 3.97 | 3.94 | (%, SA) | ||||||||||||||
Unemployment rate | Upside | 3.08 | 3.41 | 3.34 | 3.35 | (%, SA) | ||||||||||||||
Unemployment rate | Downside | 7.56 | 6.90 | 5.70 | 4.88 | (%, SA) | ||||||||||||||
House Price Index | Base | 400.12 | 393.70 | 394.21 | 403.50 | Existing Single-Family Home Price: Median, (Ths. USD, SA) | ||||||||||||||
House Price Index | Upside | 419.87 | 423.62 | 428.16 | 439.72 | Existing Single-Family Home Price: Median, (Ths. USD, SA) | ||||||||||||||
House Price Index | Downside | 339.91 | 347.29 | 352.66 | 363.59 | Existing Single-Family Home Price: Median, (Ths. USD, SA) | ||||||||||||||
Domestic GDP | Base | 22,900.95 | 23,303.78 | 23,825.37 | 24,397.71 | Bil. Ch. 2012 USD, SAAR 2) | ||||||||||||||
Domestic GDP | Upside | 23,354.42 | 23,883.09 | 24,451.63 | 25,020.82 | Bil. Ch. 2012 USD, SAAR 2) | ||||||||||||||
Domestic GDP | Downside | 22,039.64 | 22,368.94 | 23,099.22 | 23,768.80 | Bil. Ch. 2012 USD, SAAR 2) | ||||||||||||||
Equity | Base | 4,672.66 | 4,796.24 | 5,043.19 | 5,368.63 | Standard & Poor’s (S&P); Moody’s Analytics Forecasted | ||||||||||||||
Equity | Upside | 4,950.59 | 5,058.20 | 5,256.09 | 5,490.26 | Standard & Poor’s (S&P); Moody’s Analytics Forecasted | ||||||||||||||
Equity | Downside | 2,904.90 | 3,226.25 | 3,942.26 | 4,603.90 | Standard & Poor’s (S&P); Moody’s Analytics Forecasted |
1 | NSA: National Security Agency |
2 | SAAR: Seasonally adjusted annual rate |
Annual Report on Form 20-F 2023 | 193 |
![]() | About Aegon Governance and risk management Financial information | |||
Economic variable assump- tions, December 31, 2022 | 2023 | 2024 | 2025 | 2026 | Units | |||||||||||||||
Interest rates | Base | 3.94 | 3.86 | 3.86 | 3.99 | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) ) | ||||||||||||||
Interest rates | Upside | 4.04 | 3.96 | 3.86 | 3.98 | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) ) | ||||||||||||||
Interest rates | Downside | 2.13 | 2.59 | 3.34 | 3.78 | Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) ) | ||||||||||||||
Unemployment rate | Base | 3.82 | 4.22 | 4.19 | 4.15 | (%, SA) | ||||||||||||||
Unemployment rate | Upside | 3.04 | 3.33 | 3.59 | 3.53 | (%, SA) | ||||||||||||||
Unemployment rate | Downside | 6.52 | 7.64 | 6.34 | 5.48 | (%, SA) | ||||||||||||||
House Price Index | Base | 385.74 | 372.68 | 371.61 | 379.79 | Existing Single-Family Home Price: Median, (Ths. USD, SA) | ||||||||||||||
House Price Index | Upside | 396.53 | 400.29 | 399.99 | 413.28 | Existing Single-Family Home Price: Median, (Ths. USD, SA) | ||||||||||||||
House Price Index | Downside | 341.01 | 331.35 | 339.24 | 347.82 | Existing Single-Family Home Price: Median, (Ths. USD, SA) | ||||||||||||||
Domestic GDP | Base | 20,410.05 | 20,741.30 | 21,301.03 | 21,891.77 | Bil. Ch. 2012 USD, SAAR 2) | ||||||||||||||
Domestic GDP | Upside | 20,705.70 | 21,265.32 | 21,796.25 | 22,379.68 | Bil. Ch. 2012 USD, SAAR 2) | ||||||||||||||
Domestic GDP | Downside | 20,009.19 | 19,956.30 | 20,566.77 | 21,238.89 | Bil. Ch. 2012 USD, SAAR 2) | ||||||||||||||
Equity | Base | 4,343.49 | 4,498.93 | 4,655.70 | 4,905.28 | Standard & Poor’s (S&P); Moody’s Analytics Forecasted | ||||||||||||||
Equity | Upside | 4,690.53 | 4,727.85 | 4,923.08 | 5,047.37 | Standard & Poor’s (S&P); Moody’s Analytics Forecasted | ||||||||||||||
Equity | Downside | 3,062.99 | 2,836.89 | 3,326.54 | 4,000.34 | Standard & Poor’s (S&P); Moody’s Analytics Forecasted |
1 | NSA: National Security Agency |
2 | SAAR: Seasonally adjusted annual rate |
Weightings | Base | Upside | Downside | |||||||||
On December 31, 2023 | 40 | 30 | 30 | |||||||||
On December 31, 2022 | 40 | 30 | 30 |
Notes to the consolidated financial statements Note 4 | ||||
December 31, 2021 | December 31, 2020 | |||||||||||||||
Unrealized losses - debt securities, money market investments and other | Carrying value of instruments with unrealized losses | Unrealized losses | Carrying value of instruments with unrealized losses | Unrealized losses | ||||||||||||
Residential mortgage-backed securities (RMBSs) | 810 | (21 | ) | 142 | (17 | ) | ||||||||||
Commercial mortgage-backed securities (CMBSs) | 803 | (27 | ) | 543 | (40 | ) | ||||||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | 1,244 | (9 | ) | 1,183 | (13 | ) | ||||||||||
ABSs - Other | 558 | (7 | ) | 123 | (3 | ) | ||||||||||
Financial Industry - Banking | 1,669 | (32 | ) | 149 | (7 | ) | ||||||||||
Financial Industry - Insurance | 368 | (11 | ) | 85 | (7 | ) | ||||||||||
Financial Industry - Other | 1,092 | (29 | ) | 536 | (9 | ) | ||||||||||
Industrial | 5,630 | (179 | ) | 1,141 | (60 | ) | ||||||||||
Utility | 1,564 | (68 | ) | 333 | (9 | ) | ||||||||||
Government | 842 | (28 | ) | 361 | (10 | ) | ||||||||||
Other | 325 | (66 | ) | 380 | (75 | ) | ||||||||||
Total held by Aegon Americas and NL | 14,905 | (475 | ) | 4,976 | (249 | ) | ||||||||||
Held by other segments | 1,994 | (102 | ) | 523 | (28 | ) | ||||||||||
Total | 16,898 | (576 | ) | 5,499 | (277 | ) |
∎ | Transfers between Stages 1, 2 and 3 due to financial instruments experiencing significant increases (or decreases) of credit risk or becoming credit-impaired in the period, and the consequent “step up” (or “step down”) between 12-month and lifetime ECL; |
∎ | Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments de-recognized in the period; |
∎ | Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of inputs to models; |
∎ | Impacts on the measurement of ECL due to changes made to models and assumptions; |
∎ | Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis; |
∎ | Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and, |
∎ | Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during the period. |
2021 | 2020 | |||||||||||||||||||||||||||||||
Past due but not impaired assets | 0-6 months | 6-12 months | > 1 year | Total | 0-6 months | 6-12 months | > 1 year | Total | ||||||||||||||||||||||||
Debt securities - carried at fair value | 1,171 | 255 | 40 | 1,466 | 369 | 34 | 9 | 412 | ||||||||||||||||||||||||
Mortgage loans | 129 | 1 | 1 | 131 | 169 | 55 | 1 | 226 | ||||||||||||||||||||||||
Other loans | 19 | 5 | 10 | 35 | 24 | 8 | 5 | 36 | ||||||||||||||||||||||||
Accrued interest | 30 | 10 | 3 | 42 | 5 | 1 | 1 | 8 | ||||||||||||||||||||||||
Other financial assets - carried at fair value | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
At December 31 | 1,350 | 271 | 54 | 1,675 | 567 | 98 | 16 | 681 |
2023 | ||||||||||||||||||||
ECL staging | ||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | ||||||||||||||||||
Debt securities | 12-month ECL | | Lifetime ECL not credit-impaired | | Lifetime ECL credit-impaired | | Purchased credit impaired | | Total | |||||||||||
Loss allowance on January 1 | (156 | ) | (32 | ) | (86 | ) | (1 | ) | (276 | ) | ||||||||||
Transfers: | ||||||||||||||||||||
- Transfer from Stage 1 to Stage 2 | 2 | (2 | ) | - | - | - | ||||||||||||||
- Transfer from Stage 1 to Stage 3 | 2 | - | (2 | ) | - | - | ||||||||||||||
- Transfer from Stage 2 to Stage 1 | (3 | ) | 3 | - | - | - | ||||||||||||||
- Transfer from Stage 2 to Stage 3 | - | 3 | (3 | ) | - | - | ||||||||||||||
- Transfer from Stage 3 to Stage 2 | - | (4 | ) | 4 | - | - | ||||||||||||||
- Transfer from Stage 3 to Stage 1 | (39 | ) | - | 39 | - | - | ||||||||||||||
Impact on year-end ECL of exposures transferred between stages during the year | 36 | (2 | ) | (39 | ) | - | (5 | ) | ||||||||||||
Financial assets derecognized during the period | 26 | 3 | 44 | - | 73 | |||||||||||||||
New financial assets originated or purchased | (16 | ) | (1 | ) | (9 | ) | - | (26 | ) | |||||||||||
Change in models | (5 | ) | 6 | (14 | ) | (1 | ) | (13 | ) | |||||||||||
Net exchange differences | 5 | 1 | 2 | - | 9 | |||||||||||||||
Loss allowance on December 31 | (147 | ) | (25 | ) | (64 | ) | (2 | ) | (238 | ) |
Annual Report on Form 20-F 2023 | 195 |
![]() | About Aegon Governance and risk management Financial information | |||
2022 | ||||||||||||||||||||
ECL staging | ||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | ||||||||||||||||||
Debt securities | 12-month ECL | | Lifetime ECL not credit-impaired | | Lifetime ECL credit- impaired | | Purchased credit impaired | | Total | |||||||||||
Loss allowance on January 1 | (161 | ) | (13 | ) | (38 | ) | (2 | ) | (214 | ) | ||||||||||
Transfers: | ||||||||||||||||||||
- Transfer from Stage 1 to Stage 2 | 7 | (7 | ) | - | - | - | ||||||||||||||
- Transfer from Stage 1 to Stage 3 | 3 | - | (3 | ) | - | - | ||||||||||||||
- Transfer from Stage 2 to Stage 1 | (10 | ) | 10 | - | - | - | ||||||||||||||
- Transfer from Stage 2 to Stage 3 | - | 1 | (1 | ) | - | - | ||||||||||||||
- Transfer from Stage 3 to Stage 2 | - | (8 | ) | 8 | - | - | ||||||||||||||
- Transfer from Stage 3 to Stage 1 | (21 | ) | - | 21 | - | - | ||||||||||||||
Impact on year-end ECL of exposures transferred between stages during the year | 26 | (16 | ) | (82 | ) | - | (72 | ) | ||||||||||||
Financial assets derecognized during the period | 33 | 6 | 20 | - | 58 | |||||||||||||||
New financial assets originated or purchased | (29 | ) | (2 | ) | (24 | ) | - | (56 | ) | |||||||||||
Change in models | 5 | (2 | ) | 16 | 1 | 20 | ||||||||||||||
Net exchange differences | (11 | ) | (1 | ) | (2 | ) | - | (13 | ) | |||||||||||
Transfers to disposal groups | 1 | - | - | - | 1 | |||||||||||||||
Loss allowance on December 31 | (156 | ) | (32 | ) | (86 | ) | (1 | ) | (276 | ) |
2023 | 2022 | |||||||
Mortgage loans measured at amortized cost | (15 | ) | 10 | |||||
Debt securities measured at FVOCI | (44 | ) | (108 | ) | ||||
Other | (60 | ) | (41 | ) | ||||
Net impairment charge in P&L | (119 | ) | (138 | ) |
Notes to the consolidated financial statements Note 4 | ||||
2023 | ||||||||||||||||||||
ECL staging | ||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | ||||||||||||||||||
Mortgage loans | 12-month ECL | | Lifetime ECL not credit-impaired | | Lifetime ECL credit-impaired | Purchased credit impaired | | Total | ||||||||||||
Gross carrying amount on January 1 | 10,416 | 2 | - | - | 10,418 | |||||||||||||||
Transfers: | ||||||||||||||||||||
- Transfer from Stage 1 to Stage 2 | (39 | ) | 39 | - | - | - | ||||||||||||||
Financial assets derecognized during the period other than write-offs | (566 | ) | (5 | ) | - | - | (571 | ) | ||||||||||||
New financial assets originated or purchased | 691 | - | - | - | 691 | |||||||||||||||
Net exchange differences | (354 | ) | (1 | ) | - | - | (355 | ) | ||||||||||||
Gross carrying amount on December 31 | 10,147 | 35 | - | - | 10,182 | |||||||||||||||
(-) Expected credit losses on December 31 | (24 | ) | (1 | ) | - | - | (26 | ) | ||||||||||||
Net carrying amount on December 31 | 10,123 | 33 | - | - | 10,156 |
2022 | ||||||||||||||||||||
ECL staging | ||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | ||||||||||||||||||
Mortgage loans | 12-month ECL | | Lifetime ECL not credit-impaired | | Lifetime ECL credit-impaired | | Purchased credit impaired | | Total | |||||||||||
Gross carrying amount on January 1 | 24,032 | 391 | 14 | - | 24,437 | |||||||||||||||
Transfers: | ||||||||||||||||||||
- Transfer from Stage 1 to Stage 2 | (508 | ) | 508 | - | - | - | ||||||||||||||
- Transfer from Stage 1 to Stage 3 | (1 | ) | - | 1 | - | - | ||||||||||||||
- Transfer from Stage 2 to Stage 1 | 29 | (29 | ) | - | - | - | ||||||||||||||
Financial assets derecognized during the period other than write-offs | (2,456 | ) | (62 | ) | (3 | ) | - | (2,521 | ) | |||||||||||
New financial assets originated or purchased | 3,738 | 109 | - | - | 3,848 | |||||||||||||||
Amortizations through income statement | (2 | ) | - | - | - | (2 | ) | |||||||||||||
Realized gains and losses through income statement | 36 | - | - | - | 36 | |||||||||||||||
Net exchange differences | 615 | 2 | - | - | 617 | |||||||||||||||
Other movements | (1,474 | ) | - | - | - | (1,474 | ) | |||||||||||||
Transfer to/from other headings | (2 | ) | - | - | - | (2 | ) | |||||||||||||
Transfers to disposal groups | (13,590 | ) | (918 | ) | (13 | ) | - | (14,521 | ) | |||||||||||
Gross carrying amount on December 31 | 10,416 | 2 | - | - | 10,418 | |||||||||||||||
(-) Expected credit losses on December 31 | (12 | ) | - | - | - | (12 | ) | |||||||||||||
Net carrying amount on December 31 | 10,405 | 2 | - | - | 10,407 |
Impaired financial assets | Carrying amount 2021 | Carrying amount 2020 | ||||||
Shares | 62 | 38 | ||||||
Debt securities - carried at fair value | 635 | 789 | ||||||
Mortgage loans | 10 | 36 | ||||||
Other loans | 2 | 3 | ||||||
Other financial assets - carried at fair value | 14 | 2 | ||||||
At December 31 | 723 | 867 |
Annual Report on Form 20-F 2023 | 197 |
![]() | About Aegon Governance and risk management Financial information | |||
2023 | ||||||||||||||||||||
ECL staging | ||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | ||||||||||||||||||
Debt securities | 12-month ECL | | Lifetime ECL not credit-impaired | | Lifetime ECL credit-impaired | | Purchased credit impaired | | Total | |||||||||||
Gross carrying amount on January 1 | 50,666 | 413 | 403 | 125 | 51,607 | |||||||||||||||
Transfers: | ||||||||||||||||||||
- Transfer from Stage 1 to Stage 2 | (80 | ) | 80 | - | - | - | ||||||||||||||
- Transfer from Stage 1 to Stage 3 | (45 | ) | - | 45 | - | - | ||||||||||||||
- Transfer from Stage 2 to Stage 3 | - | (23 | ) | 23 | - | - | ||||||||||||||
- Transfer from Stage 3 to Stage 2 | - | 6 | (6 | ) | - | - | ||||||||||||||
- Transfer from Stage 2 to Stage 1 | 76 | (76 | ) | - | - | - | ||||||||||||||
- Transfer from Stage 3 to Stage 1 | 59 | - | (59 | ) | - | - | ||||||||||||||
Financial assets derecognized during the period other than write-offs | (7,836 | ) | (83 | ) | (111 | ) | (27 | ) | (8,057 | ) | ||||||||||
New financial assets originated or purchased | 3,672 | 37 | 22 | - | 3,731 | |||||||||||||||
Unrealized gains/losses through equity | 1,488 | 16 | 1 | (10 | ) | 1,495 | ||||||||||||||
Amortizations through income statement | 113 | - | 19 | 17 | 148 | |||||||||||||||
Net exchange differences | (1,637 | ) | (13 | ) | (12 | ) | (4 | ) | (1,666 | ) | ||||||||||
Other movements | (9 | ) | - | - | - | (9 | ) | |||||||||||||
Transfer to/from other headings | (6 | ) | - | - | - | (6 | ) | |||||||||||||
Gross carrying amount on December 31 | 46,461 | 357 | 325 | 100 | 47,242 | |||||||||||||||
Expected credit losses on December 31 | (147 | ) | (25 | ) | (64 | ) | (2 | ) | (237 | ) |
2022 | ||||||||||||||||||||
ECL staging | ||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | ||||||||||||||||||
Debt securities | 12-month ECL | | Lifetime ECL not credit-impaired | | Lifetime ECL credit-impaired | | Purchased credit impaired | | Total | |||||||||||
Gross carrying amount on January 1 | 70,132 | 259 | 433 | 150 | 70,974 | |||||||||||||||
Transfers: | ||||||||||||||||||||
- Transfer from Stage 1 to Stage 2 | (228 | ) | 228 | - | - | - | ||||||||||||||
- Transfer from Stage 1 to Stage 3 | (77 | ) | - | 77 | - | - | ||||||||||||||
- Transfer from Stage 2 to Stage 3 | - | (15 | ) | 15 | - | - | ||||||||||||||
- Transfer from Stage 3 to Stage 2 | - | 2 | (2 | ) | - | - | ||||||||||||||
- Transfer from Stage 2 to Stage 1 | 33 | (33 | ) | - | - | - | ||||||||||||||
- Transfer from Stage 3 to Stage 1 | 6 | - | (6 | ) | - | - | ||||||||||||||
Financial assets derecognized during the period other than write-offs | (11,855 | ) | (47 | ) | (112 | ) | (30 | ) | (12,043 | ) | ||||||||||
New financial assets originated or purchased | 6,411 | 45 | 45 | - | 6,501 | |||||||||||||||
Unrealized gains/losses through equity | (16,599 | ) | (94 | ) | (123 | ) | (26 | ) | (16,842 | ) | ||||||||||
Amortizations through income statement | 267 | 2 | 38 | 20 | 327 | |||||||||||||||
Movements related to fair value hedges | (12 | ) | - | - | - | (12 | ) | |||||||||||||
Net exchange differences | 4,525 | 15 | 29 | 10 | 4,580 | |||||||||||||||
Other movements | (52 | ) | 50 | 10 | - | 7 | ||||||||||||||
Transfers to disposal groups | (1,884 | ) | - | - | - | (1,884 | ) | |||||||||||||
Gross carrying amount on December 31 | 50,666 | 413 | 403 | 125 | 51,607 | |||||||||||||||
Expected credit losses on December 31 | (156 | ) | (32 | ) | (86 | ) | (1 | ) | (276 | ) |
Notes to the consolidated financial statements Note 4 | ||||
Equity, real estate and non-fixed incomeexposure | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity, real estate and non-fixed incomeexposure | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity, real estate and non-fixed incomeexposure | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity, real estate and non-fixed income exposure | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Total 2021 | Americas | United Kingdom | International | Asset Management | | | Holding and other activities | | Total 2023 | 1) | |||||||||||||||||||||||||||||||||||
Equity funds | 175 | 34 | - | 63 | 9 | - | 280 | |||||||||||||||||||||||||||||||||||||||||||||
Equity funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity funds | 133 | - | - | 9 | - | 141 | ||||||||||||||||||||||||||||||||||||||||||||||
Common shares 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares 1) | 190 | - | 29 | 5 | - | 1 | 226 | 106 | 14 | 5 | - | - | 126 | |||||||||||||||||||||||||||||||||||||||
Preferred shares | 128 | - | - | - | - | - | 128 | |||||||||||||||||||||||||||||||||||||||||||||
Preferred shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred shares | 29 | - | - | - | - | 29 | ||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | 39 | 2,588 | - | 16 | - | - | 2,643 | 38 | - | 17 | - | - | 55 | |||||||||||||||||||||||||||||||||||||||
Hedge funds | 35 | - | - | - | - | - | 35 | |||||||||||||||||||||||||||||||||||||||||||||
Hedge funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge funds | 6 | - | - | - | - | 6 | ||||||||||||||||||||||||||||||||||||||||||||||
Other alternative investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other alternative investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other alternative investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other alternative investments | 1,934 | 432 | - | - | - | - | 2,366 | 2,404 | - | - | - | - | 2,404 | |||||||||||||||||||||||||||||||||||||||
Other financial assets | 1,595 | 1,023 | 598 | 7 | 2 | - | 3,225 | |||||||||||||||||||||||||||||||||||||||||||||
Other financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other financial assets | 1,856 | 772 | 4 | 1 | - | 2,633 | ||||||||||||||||||||||||||||||||||||||||||||||
At December 31 | 4,097 | 4,076 | 628 | 91 | 10 | 1 | 8,903 | |||||||||||||||||||||||||||||||||||||||||||||
On December 31 | 4,573 | 786 | 27 | 10 | - | 5,395 |
1 | Common shares in Holding and other activities includes the elimination of treasury shares in the general account for an amount of EUR nil million. |
Equity, real estate and non-fixed incomeexposure | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity, real estate and non-fixed incomeexposure | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity, real estate and non-fixed incomeexposure | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity, real estate and non-fixed income exposure | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Total 2020 | Americas | United Kingdom | International | Asset Management | | | Holding and other activities | | Total 2022 | 1) | |||||||||||||||||||||||||||||||||||
Equity funds | 154 | 40 | - | 68 | 8 | - | 270 | |||||||||||||||||||||||||||||||||||||||||||||
Equity funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity funds | 141 | - | 3 | 7 | - | 151 | ||||||||||||||||||||||||||||||||||||||||||||||
Common shares 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares 1) | 161 | - | 34 | 6 | - | 16 | 218 | 148 | 25 | 5 | - | 1 | 179 | |||||||||||||||||||||||||||||||||||||||
Preferred shares | 127 | - | - | - | - | 27 | 155 | |||||||||||||||||||||||||||||||||||||||||||||
Preferred shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred shares | 26 | - | - | - | - | 26 | ||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | 37 | 2,331 | - | 16 | - | - | 2,385 | 42 | - | 17 | - | - | 59 | |||||||||||||||||||||||||||||||||||||||
Hedge funds | 74 | - | - | - | - | - | 75 | |||||||||||||||||||||||||||||||||||||||||||||
Hedge funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge funds | 10 | - | - | - | - | 10 | ||||||||||||||||||||||||||||||||||||||||||||||
Other alternative investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other alternative investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other alternative investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other alternative investments | 1,557 | 381 | - | - | - | 7 | 1,945 | 2,169 | - | - | - | - | 2,169 | |||||||||||||||||||||||||||||||||||||||
Other financial assets | 1,104 | 1,046 | 800 | 6 | 1 | - | 2,957 | |||||||||||||||||||||||||||||||||||||||||||||
Other financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other financial assets | 1,904 | 531 | 5 | 1 | - | 2,441 | ||||||||||||||||||||||||||||||||||||||||||||||
At December 31 | 3,215 | 3,799 | 834 | 97 | 10 | 51 | 8,005 | |||||||||||||||||||||||||||||||||||||||||||||
On December 31 | 4,440 | 556 | 30 | 9 | 1 | 5,035 |
1 | Common shares in Holding and other activities includes the elimination of treasury shares in the general account for an amount of EUR nil million. |
Annual Report on Form 20-F 2023 | 199 |
![]() | ||||
Market risk concentrations – shares | Americas | The Netherlands | United Kingdom | International | Asset Management | Total 2021 1) | Of which impaired assets | |||||||||||||||||||||
Communication | 1 | - | - | - | - | 1 | - | |||||||||||||||||||||
Consumer | 5 | - | - | - | - | 5 | 1 | |||||||||||||||||||||
Financials | 411 | 4 | - | 5 | - | 420 | 39 | |||||||||||||||||||||
Funds | - | 1,406 | 29 | 62 | - | 1,498 | 17 | |||||||||||||||||||||
Industries | 42 | - | - | - | - | 42 | 5 | |||||||||||||||||||||
Other | 35 | - | - | 5 | 9 | 49 | - | |||||||||||||||||||||
At December 31 | 493 | 1,410 | 29 | 72 | 9 | 2,015 | 62 |
Market risk concentrations – shares | Americas | United Kingdom | International | Asset Management | Total 2023 | |||||||||||||||
Communication | 2 | - | - | - | 2 | |||||||||||||||
Consumer | 4 | - | - | - | 4 | |||||||||||||||
Financials | 136 | - | 5 | - | 142 | |||||||||||||||
Funds | 30 | 14 | - | - | 45 | |||||||||||||||
Industries | 11 | - | - | - | 11 | |||||||||||||||
Other | 84 | - | 4 | 9 | 97 | |||||||||||||||
On December 31 | 267 | 14 | 10 | 9 | 300 |
Market risk concentrations – shares | Americas | The Netherlands | United Kingdom | International | Asset Management | Total 2020 1) | Of which impaired assets | |||||||||||||||||||||
Communication | 1 | - | - | - | - | 4 | - | |||||||||||||||||||||
Consumer | 4 | - | - | - | 1 | 6 | - | |||||||||||||||||||||
Financials | 368 | 14 | - | 5 | 3 | 400 | 3 | |||||||||||||||||||||
Funds | - | 1,363 | 34 | 63 | - | 1,470 | 14 | |||||||||||||||||||||
Industries | 42 | - | - | 1 | 1 | 44 | 12 | |||||||||||||||||||||
Other | 27 | - | - | 6 | 3 | 56 | 7 | |||||||||||||||||||||
At December 31 | 442 | 1,376 | 34 | 74 | 9 | 1,979 | 35 |
Market risk concentrations – shares | Americas | United Kingdom | International | Asset Management | Total 2022 | |||||||||||||||
Communication | 2 | - | - | - | 2 | |||||||||||||||
Consumer | 13 | - | - | - | 13 | |||||||||||||||
Financials | 154 | - | 5 | - | 159 | |||||||||||||||
Funds | 19 | 25 | - | - | 45 | |||||||||||||||
Industries | 4 | - | - | - | 4 | |||||||||||||||
Other | 123 | - | 4 | 7 | 135 | |||||||||||||||
On December 31 | 315 | 25 | 10 | 7 | 358 |
2021 | 2020 | 2019 | 2018 | 2017 | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||
S&P 500 | 4,766 | 3,756 | 3,231 | 2,507 | 2,674 | |||||||||||||||||||||||||||||||||||
S&P 500 | ||||||||||||||||||||||||||||||||||||||||
S&P 500 | ||||||||||||||||||||||||||||||||||||||||
S&P 500 | 4,770 | 3,840 | 4,766 | 3,756 | 3,231 | |||||||||||||||||||||||||||||||||||
Nasdaq | ||||||||||||||||||||||||||||||||||||||||
Nasdaq | ||||||||||||||||||||||||||||||||||||||||
Nasdaq | ||||||||||||||||||||||||||||||||||||||||
Nasdaq | 15,645 | 12,888 | 8,973 | 6,635 | 6,903 | 15,011 | 10,466 | 15,645 | 12,888 | 8,973 | ||||||||||||||||||||||||||||||
FTSE 100 | 7,385 | 6,461 | 7,542 | 6,728 | 7,688 | |||||||||||||||||||||||||||||||||||
FTSE 100 | ||||||||||||||||||||||||||||||||||||||||
FTSE 100 | ||||||||||||||||||||||||||||||||||||||||
FTSE 100 | 7,733 | 7,452 | 7,385 | 6,461 | 7,542 | |||||||||||||||||||||||||||||||||||
AEX | 798 | 625 | 605 | 488 | 545 | |||||||||||||||||||||||||||||||||||
AEX | ||||||||||||||||||||||||||||||||||||||||
AEX | ||||||||||||||||||||||||||||||||||||||||
AEX | 787 | 689 | 798 | 625 | 605 |
2023 | 2022 | |||||||||||||||||||||||
Estimated approximate effects on: | CSM | Net result | Shareholders’ equity | CSM | Net result | Shareholders’ equity | ||||||||||||||||||
Equity 10% increase | ||||||||||||||||||||||||
Financial instruments | (5 | ) | (13 | ) | (10 | ) | 29 | |||||||||||||||||
Insurance and reinsurance assets | - | (271 | ) | (265 | ) | - | (325 | ) | (320 | ) | ||||||||||||||
Insurance and reinsurance liabilities | 310 | 422 | 397 | 291 | 415 | 397 | ||||||||||||||||||
Equity 10% decrease | ||||||||||||||||||||||||
Financial instruments | 4 | 11 | 16 | (28 | ) | |||||||||||||||||||
Insurance and reinsurance assets | - | 229 | 225 | - | 344 | 340 | ||||||||||||||||||
Insurance and reinsurance liabilities | (316 | ) | (465 | ) | (431 | ) | (274 | ) | (522 | ) | (509 | ) | ||||||||||||
Equity 25% increase | ||||||||||||||||||||||||
Financial instruments | (31 | ) | (50 | ) | (43 | ) | 59 | |||||||||||||||||
Insurance and reinsurance assets | - | (737 | ) | (721 | ) | - | (699 | ) | (690 | ) | ||||||||||||||
Insurance and reinsurance liabilities | 775 | 1,035 | 989 | 723 | 917 | 872 | ||||||||||||||||||
Equity 25% decrease | ||||||||||||||||||||||||
Financial instruments | 35 | 53 | 55 | (53 | ) | |||||||||||||||||||
Insurance and reinsurance assets | - | 965 | 945 | - | 1,010 | 997 | ||||||||||||||||||
Insurance and reinsurance liabilities | (804 | ) | (1,499 | ) | (1,434 | ) | (618 | ) | (1,539 | ) | (1,505 | ) |
Immediate change of | Estimated approximate effects on net result | Estimated approximate effects on shareholders’ equity | ||||||
2021 | ||||||||
Equity increase 10% | 151 | 341 | ||||||
Equity decrease 10% | (212 | ) | (221 | ) | ||||
Equity increase 25% | 322 | 660 | ||||||
Equity decrease 25% | (529 | ) | (685 | ) | ||||
2020 | ||||||||
Equity increase 10% | 146 | 394 | ||||||
Equity decrease 10% | (208 | ) | (199 | ) | ||||
Equity increase 25% | 290 | 725 | ||||||
Equity decrease 25% | (541 | ) | (715 | ) |
Notes to the consolidated financial statements Note 4 | ||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
3-month US LIBOR | 0.21% | 0.24% | 1.91% | 2.81% | 1.69% | |||||||||||||||
3-month EURIBOR | (0.57%) | (0.55%) | (0.38% | ) | (0.31%) | (0.33%) | ||||||||||||||
10-year US Treasury | 1.78% | 0.91% | 1.91% | 2.69% | 2.41% | |||||||||||||||
10-year Dutch government | (0.03%) | (0.48%) | (0.06% | ) | 0.39% | 0.53% |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||
3-month US LIBOR | 5.59% | 4.77% | 0.21% | 0.24% | 1.91% | |||||
3-month EURIBOR | 3.91% | 2.13% | (0.57%) | (0.55%) | (0.38%) | |||||
10-year US Treasury | 3.86% | 3.83% | 1.78% | 0.91% | 1.91% | |||||
10-year Dutch government | 2.32% | 2.91% | (0.03%) | (0.48%) | (0.06%) |
Annual Report on Form 20-F 2023 | 201 |
![]() | Financial information | |||
2023 | 2022 | |||||||||||||||||||||||
Estimated approximate effects on: | CSM | Net result | Shareholders’ equity | CSM | Net result | Shareholders’ equity | ||||||||||||||||||
100 bps increase - Yield curve | ||||||||||||||||||||||||
Financial instruments | (114 | ) | (652 | ) | (153 | ) | (605 | ) | ||||||||||||||||
Insurance and reinsurance assets | (4 | ) | (1,029 | ) | (3,876 | ) | (2 | ) | (1,217 | ) | (4,190 | ) | ||||||||||||
Insurance and reinsurance liabilities | 126 | 1,008 | 4,158 | 185 | 1,149 | 4,123 | ||||||||||||||||||
100 bps decrease - Yield curve | ||||||||||||||||||||||||
Financial instruments | 35 | 655 | 55 | 570 | ||||||||||||||||||||
Insurance and reinsurance assets | 6 | 1,258 | 4,625 | 4 | 1,482 | 5,149 | ||||||||||||||||||
Insurance and reinsurance liabilities | (133 | ) | (1,306 | ) | (5,303 | ) | (208 | ) | (1,480 | ) | (5,527 | ) |
∎ | For a number of products (e.g. our Stable Value Solutions and parts of the Universal Life products) we have stable surrender values alongside stable crediting rates which mean that as interest rates rises it becomes more attractive in the short term for customers to lapse their policies and due to the |
∎ | For other longer duration products such as Long Term Care and Unit Linked products with Non Lapse or secondary guarantees, we have a natural convexity, meaning we are more exposed to interest rates falling, which results in adverse sensitivities on these products than to interest rates rising which are positive. This is because we still expect to receive premiums over the next 10 to 20 years but will continue to pay claims for many years thereafter. |
Parallel movement of yield curve | Estimated approximate effects on net result | Estimated approximate effects on shareholders’ equity | ||||||
2021 | ||||||||
Shift up 100 basis points | 296 | (3,591 | ) | |||||
Shift down 100 basis points | (594 | ) | 2,906 | |||||
2020 | ||||||||
Shift up 100 basis points | 813 | (1,690 | ) | |||||
Shift down 100 basis points | (1,174 | ) | 1,352 |
Notes to the consolidated financial statements Note 4 | ||||
Legal risks, as Aegon is required to make changes to documentation for new and existing transactions, such as funding instruments issued with an IBOR reference and derivatives held with an IBOR reference; |
Financial risks, arising from any changes in the valuation of financial instruments linked to benchmark rates, such as derivatives and floating rate notes, issued by, or invested in by Aegon; |
Pricing risks, as changes to benchmark indices could impact pricing mechanisms on some funding instruments or investments; |
Operational risks, due to the potential requirement to adapt informational technology systems, trade reporting infrastructure and operational processes; and |
Conduct risks, relating to communication with potential impact on Aegon’s customers, and engagement during the transition period. |
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2021 | 2023 | 2022 | ||||||||||||||||||||||
Non derivative financial instruments to transition to alternative benchmark | Financial assets non-derivatives | | Financial liabilities non-derivatives | |||||||||||||||||||||
Non derivative financial instruments to transition to alternative benchmark | ||||||||||||||||||||||||
Non derivative financial instruments to transition to alternative benchmark | ||||||||||||||||||||||||
Non derivative financial instruments to transition to alternative benchmark | Financial assets non-derivatives | Financial liabilities non-derivatives | Financial assets non-derivatives | Financial liabilities non-derivatives | ||||||||||||||||||||
By benchmark rate | ||||||||||||||||||||||||
By benchmark rate | ||||||||||||||||||||||||
By benchmark rate | ||||||||||||||||||||||||
By benchmark rate | ||||||||||||||||||||||||
GBP LIBOR | 19 | 0 | ||||||||||||||||||||||
GBP LIBOR | ||||||||||||||||||||||||
GBP LIBOR | ||||||||||||||||||||||||
GBP LIBOR | 27 | - | 27 | - | ||||||||||||||||||||
USD LIBOR | 822 | 1,143 | ||||||||||||||||||||||
Euribor | 3,095 | 1,200 | ||||||||||||||||||||||
Fed Funds | 102 | 0 | ||||||||||||||||||||||
USD LIBOR | ||||||||||||||||||||||||
USD LIBOR | ||||||||||||||||||||||||
USD LIBOR | 66 | - | 814 | 1,218 | ||||||||||||||||||||
Total | 4,038 | 2,343 | ||||||||||||||||||||||
Total | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||
Total | 93 | - | 841 | 1,218 |
Annual Report on Form 20-F 2023 | 203 |
![]() | About Aegon Governance and risk management Financial information | |||
2021 | 2020 | 2019 | 2023 | 2022 | ||||||||||||||||
Net result | ||||||||||||||||||||
Net result | ||||||||||||||||||||
Net result | ||||||||||||||||||||
Net result | ||||||||||||||||||||
Americas (in USD) | ||||||||||||||||||||
Americas (in USD) | ||||||||||||||||||||
Americas (in USD) | ||||||||||||||||||||
Americas (in USD) | 1,195 | (611 | ) | 1,324 | (266 | ) | 562 | |||||||||||||
United Kingdom (in GBP) | 104 | 60 | (29) | |||||||||||||||||
United Kingdom (in GBP) | ||||||||||||||||||||
United Kingdom (in GBP) | ||||||||||||||||||||
United Kingdom (in GBP) | 26 | 57 | ||||||||||||||||||
Equity in functional currency | ||||||||||||||||||||
Equity in functional currency | ||||||||||||||||||||
Equity in functional currency | ||||||||||||||||||||
Equity in functional currency | ||||||||||||||||||||
Americas (in USD) | 18,324 | 19,127 | 18,123 | |||||||||||||||||
Americas (in USD) | ||||||||||||||||||||
Americas (in USD) | ||||||||||||||||||||
Americas (in USD) | 3,690 | 3,456 | ||||||||||||||||||
United Kingdom (in GBP) | 1,260 | 1,391 | 1,358 | |||||||||||||||||
United Kingdom (in GBP) | ||||||||||||||||||||
United Kingdom (in GBP) | ||||||||||||||||||||
United Kingdom (in GBP) | 1,256 | 1,373 |
![]() |
2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
EUR | GBP | USD | Other | Total | EUR | GBP | USD | Other | Total | |||||||||||||||||||||||||||||||
Financial instruments - assets | 722 | 1,713 | 70,557 | 928 | 73,921 | 733 | 1,501 | 73,745 | 1,493 | 77,471 | ||||||||||||||||||||||||||||||
Financial instruments - liabilities | 2,823 | 40,242 | 38,387 | - | 81,452 | 3,304 | 32,595 | 39,781 | - | 75,681 | ||||||||||||||||||||||||||||||
Insurance and reinsurance contract - assets | 7 | 2 | 16,744 | 39 | 16,793 | 5 | 369 | 16,557 | 45 | 16,976 | ||||||||||||||||||||||||||||||
Insurance and reinsurance contract - liabilities | 715 | 61,922 | 130,886 | 6,124 | 199,648 | 690 | 58,676 | 130,991 | 7,088 | 197,445 |
Closing rates | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||
Closing rates | ||||||||||||||||||||||||||||||||||||||||
Closing rates | ||||||||||||||||||||||||||||||||||||||||
Closing rates | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
USD | 1.14 | 1.22 | 1.12 | 1.14 | 1.20 | 1.10 | 1.07 | 1.14 | 1.22 | 1.12 | ||||||||||||||||||||||||||||||
GBP | 0.84 | 0.90 | 0.85 | 0.90 | 0.89 | |||||||||||||||||||||||||||||||||||
GBP | ||||||||||||||||||||||||||||||||||||||||
GBP | ||||||||||||||||||||||||||||||||||||||||
GBP | 0.87 | 0.89 | 0.84 | 0.90 | 0.85 |
Movement of currency exchange rates 1) | Estimated approximate effects on net result | Estimated approximate effects on shareholders’ equity | ||||||||||||||
2021 | ||||||||||||||||
Movement of markets 1) | ||||||||||||||||
Movement of markets 1) | ||||||||||||||||
Movement of markets 1) | ||||||||||||||||
Movement of markets 1) | Estimated approximate effects on net income | Estimated approximate effects on shareholders’ equity | ||||||||||||||
2023 | ||||||||||||||||
Increase by 15% of USD currencies relative to the euro | ||||||||||||||||
Increase by 15% of USD currencies relative to the euro | ||||||||||||||||
Increase by 15% of USD currencies relative to the euro | ||||||||||||||||
Increase by 15% of USD currencies relative to the euro | 205 | 3,249 | (27 | ) | 769 | |||||||||||
Increase by 15% of GBP currencies relative to the euro | 152 | 1,900 | ||||||||||||||
Increase by 15% of GBP currencies relative to the euro | ||||||||||||||||
Increase by 15% of GBP currencies relative to the euro | ||||||||||||||||
Increase by 15% of GBP currencies relative to the euro | (2 | ) | 264 | |||||||||||||
Increase by 15% of non-euro currencies relative to the euro | ||||||||||||||||
Increase by 15% of non-euro currencies relative to the euro | ||||||||||||||||
Increase by 15% of non-euro currencies relative to the euro | ||||||||||||||||
Increase by 15% of non-euro currencies relative to the euro | 244 | 3,541 | (49 | ) | 1,145 | |||||||||||
Decrease by 15% of USD currencies relative to the euro | (153 | ) | (2,441 | ) | ||||||||||||
Decrease by 15% of USD currencies relative to the euro | ||||||||||||||||
Decrease by 15% of USD currencies relative to the euro | ||||||||||||||||
Decrease by 15% of USD currencies relative to the euro | 20 | (569 | ) | |||||||||||||
Decrease by 15% of GBP currencies relative to the euro | ||||||||||||||||
Decrease by 15% of GBP currencies relative to the euro | ||||||||||||||||
Decrease by 15% of GBP currencies relative to the euro | ||||||||||||||||
Decrease by 15% of GBP currencies relative to the euro | 107 | 1,315 | 2 | (195 | ) | |||||||||||
Decrease by 15% of non-euro currencies relative to the euro | (179 | ) | (2,616 | ) | ||||||||||||
Decrease by 15% of non-euro currencies relative to the euro | ||||||||||||||||
Decrease by 15% of non-euro currencies relative to the euro | ||||||||||||||||
Decrease by 15% of non-euro currencies relative to the euro | 36 | (847 | ) | |||||||||||||
2020 | ||||||||||||||||
2022 | ||||||||||||||||
Increase by 15% of USD currencies relative to the euro | ||||||||||||||||
Increase by 15% of USD currencies relative to the euro | ||||||||||||||||
Increase by 15% of USD currencies relative to the euro | ||||||||||||||||
Increase by 15% of USD currencies relative to the euro | (93 | ) | 2,848 | 116 | 761 | |||||||||||
Increase by 15% of GBP currencies relative to the euro | (43 | ) | 1,015 | |||||||||||||
Increase by 15% of GBP currencies relative to the euro | ||||||||||||||||
Increase by 15% of GBP currencies relative to the euro | ||||||||||||||||
Increase by 15% of GBP currencies relative to the euro | 4 | 281 | ||||||||||||||
Increase by 15% of non-euro currencies relative to the euro | ||||||||||||||||
Increase by 15% of non-euro currencies relative to the euro | ||||||||||||||||
Increase by 15% of non-euro currencies relative to the euro | ||||||||||||||||
Increase by 15% of non-euro currencies relative to the euro | (52 | ) | 3,219 | 108 | 1,190 | |||||||||||
Decrease by 15% of USD currencies relative to the euro | 74 | (2,066 | ) | |||||||||||||
Decrease by 15% of USD currencies relative to the euro | ||||||||||||||||
Decrease by 15% of USD currencies relative to the euro | ||||||||||||||||
Decrease by 15% of USD currencies relative to the euro | (86 | ) | (562 | ) | ||||||||||||
Decrease by 15% of GBP currencies relative to the euro | ||||||||||||||||
Decrease by 15% of GBP currencies relative to the euro | ||||||||||||||||
Decrease by 15% of GBP currencies relative to the euro | ||||||||||||||||
Decrease by 15% of GBP currencies relative to the euro | (51 | ) | 631 | (3 | ) | (208 | ) | |||||||||
Decrease by 15% of non-euro currencies relative to the euro | 45 | (2,325 | ) | |||||||||||||
Decrease by 15% of non-euro currencies relative to the euro | ||||||||||||||||
Decrease by 15% of non-euro currencies relative to the euro | ||||||||||||||||
Decrease by 15% of non-euro currencies relative to the euro | (80 | ) | (880 | ) |
1 | The effect of currency exchange movements is reflected as a one-time shift up or down in the value of thenon-euro currencies relative to the euro on December 31. |
Notes to the consolidated financial statements Note 4 | ||||
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Maturity analysis – gross undiscounted contractual cash flows (for non-derivatives) | On demand | < 1 yr amount | 1 < 5 yrs amount | 5 < 10 yrs amount | > 10 yrs amount | Total amount | ||||||||||||||||||
2021 | ||||||||||||||||||||||||
Trust pass-through securities | - | 9 | 113 | 16 | 60 | 197 | ||||||||||||||||||
Subordinated loans | - | 108 | 377 | 246 | 2,964 | 3,695 | ||||||||||||||||||
Borrowings | - | 901 | 7,651 | 956 | 1,052 | 10,559 | ||||||||||||||||||
Lease liabilities | - | 37 | 86 | 67 | 70 | 259 | ||||||||||||||||||
Other financial liabilities | 4,993 | 1,749 | 325 | 154 | 224 | 7,444 | ||||||||||||||||||
Total financial liabilities (excluding investment/insurance contracts) | 4,993 | 2,803 | 8,551 | 1,439 | 4,368 | 22,154 | ||||||||||||||||||
Investment contracts 1) | 17,254 | 2,681 | 2,114 | 1,101 | 655 | 23,804 | ||||||||||||||||||
Investment contracts for account of policyholders 1) | 34,756 | 34,571 | 10 | 6 | 4 | 69,347 | ||||||||||||||||||
Total investment contracts | 52,009 | 37,252 | 2,124 | 1,107 | 659 | 93,151 | ||||||||||||||||||
2020 | ||||||||||||||||||||||||
Trust pass-through securities | - | 8 | 33 | 91 | 58 | 191 | ||||||||||||||||||
Subordinated loans | - | 103 | 382 | 283 | 2,842 | 3,610 | ||||||||||||||||||
Borrowings | - | 1,033 | 6,627 | 747 | 1,002 | 9,410 | ||||||||||||||||||
Lease liabilities | - | 45 | 97 | 60 | 76 | 278 | ||||||||||||||||||
Other financial liabilities | 5,333 | 2,238 | 197 | 100 | 126 | 7,993 | ||||||||||||||||||
Total financial liabilities (excluding investment/insurance contracts) | 5,333 | 3,427 | 7,337 | 1,282 | 4,105 | 21,482 | ||||||||||||||||||
Investment contracts 1) | 16,699 | 2,458 | 1,878 | 1,072 | 795 | 22,903 | ||||||||||||||||||
Investment contracts for account of policyholders 1) | 30,515 | 27,513 | 8 | 4 | 3 | 58,043 | ||||||||||||||||||
Total investment contracts | 47,214 | 29,971 | 1,886 | 1,077 | 798 | 80,946 |
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Financial liabilities relating to insurance | < 1 yr | 1 < 5 yrs | 5 < 10 yrs | > 10 yrs | Total | |||||||||||||||||||
and investment contracts 1) | On demand | amount | amount | amount | amount | amount | ||||||||||||||||||
2021 | ||||||||||||||||||||||||
Insurance contracts | - | 4,260 | 16,215 | 18,438 | 127,344 | 166,257 | ||||||||||||||||||
Insurance contracts for account of policyholders | - | 11,494 | 41,638 | 39,941 | 131,667 | 224,740 | ||||||||||||||||||
Investment contracts | - | 8,324 | 7,975 | 3,847 | 4,438 | 24,584 | ||||||||||||||||||
Investment contracts for account of policyholders | 193 | 14,011 | 27,637 | 31,715 | 84,825 | 158,381 | ||||||||||||||||||
193 | 38,089 | 93,465 | 93,941 | 348,274 | 573,962 | |||||||||||||||||||
2020 | ||||||||||||||||||||||||
Insurance contracts | - | 4,269 | 16,104 | 18,382 | 119,092 | 157,847 | ||||||||||||||||||
Insurance contracts for account of policyholders | - | 10,546 | 37,153 | 35,257 | 117,005 | 199,961 | ||||||||||||||||||
Investment contracts | - | 8,733 | 8,000 | 2,998 | 3,957 | 23,688 | ||||||||||||||||||
Investment contracts for account of policyholders | 165 | 12,004 | 27,435 | 28,318 | 72,063 | 139,986 | ||||||||||||||||||
165 | 35,552 | 88,693 | 84,955 | 312,117 | 521,482 |
Maturity analysis relating to derivatives 1) | < 1 yr | 1 < 5 yrs | 5 < 10 yrs | > 10 yrs | Total | |||||||||||||||||||
(Contractual cash flows) | On demand | amount | amount | amount | amount | amount | ||||||||||||||||||
2021 | ||||||||||||||||||||||||
Gross settled | ||||||||||||||||||||||||
Cash inflows | - | 4,300 | 3,728 | 5,034 | 104,335 | 117,396 | ||||||||||||||||||
Cash outflows | - | (4,895 | ) | (7,080 | ) | (9,499 | ) | (105,376 | ) | (126,850 | ) | |||||||||||||
Net settled | ||||||||||||||||||||||||
Cash inflows | - | 683 | 3,442 | 3,640 | 5,375 | 13,140 | ||||||||||||||||||
Cash outflows | - | (780 | ) | (3,032 | ) | (3,102 | ) | (12,591 | ) | (19,505 | ) | |||||||||||||
2020 | ||||||||||||||||||||||||
Gross settled | ||||||||||||||||||||||||
Cash inflows | - | 23,118 | 3,073 | 3,119 | 7,554 | 36,863 | ||||||||||||||||||
Cash outflows | - | (23,429 | ) | (2,267 | ) | (1,974 | ) | (4,782 | ) | (32,451 | ) | |||||||||||||
Net settled | ||||||||||||||||||||||||
Cash inflows | - | 612 | 2,293 | 2,870 | 5,418 | 11,193 | ||||||||||||||||||
Cash outflows | - | (797 | ) | (1,784 | ) | (2,258 | ) | (6,604 | ) | (11,444 | ) |
Annual Report on Form 20-F 2023 | 205 |
![]() | About Aegon Governance and risk management Financial information | |||
Undiscounted best estimate liability (i.e. Remaining contractual undiscounted net cash flows) | < 1 yr amount | 1 < 2 yrs amount | 2 < 3 yrs amount | | 3 < 4 yrs amount | 4 < 5 yrs amount | | > 5 yrs amount | Total amount | |||||||||||||||||||
2023 | ||||||||||||||||||||||||||||
Insurance contracts: | ||||||||||||||||||||||||||||
- Direct participating contracts | 8,737 | 8,287 | 8,186 | 7,823 | 7,187 | 127,351 | 167,571 | |||||||||||||||||||||
- Without direct participation contracts | 9,105 | 8,651 | 8,041 | 7,541 | 6,960 | 103,939 | 144,237 | |||||||||||||||||||||
Investment contracts with DPF: | ||||||||||||||||||||||||||||
- Direct participating contracts | 1,717 | 1,637 | 1,788 | 1,732 | 1,511 | 21,407 | 29,793 | |||||||||||||||||||||
Reinsurance contracts held, in a liability position | 46 | 43 | 41 | 39 | 39 | 1,370 | 1,578 | |||||||||||||||||||||
Total | 19,605 | 18,618 | 18,056 | 17,136 | 15,698 | 254,067 | 343,179 | |||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||
Insurance contracts: | ||||||||||||||||||||||||||||
- Direct participating contracts | 7,900 | 8,062 | 7,876 | 7,475 | 7,319 | 136,457 | 175,089 | |||||||||||||||||||||
- Without direct participation contracts | 4,313 | 3,619 | 3,350 | 3,217 | 3,201 | 141,794 | 159,494 | |||||||||||||||||||||
Investment contracts with DPF: | ||||||||||||||||||||||||||||
- Direct participating contracts | 1,764 | 1,894 | 1,835 | 1,615 | 1,590 | 20,934 | 29,632 | |||||||||||||||||||||
Reinsurance contracts held, in a liability position | 18 | 18 | 18 | 18 | 19 | 782 | 874 | |||||||||||||||||||||
Total | 13,996 | 13,594 | 13,079 | 12,325 | 12,129 | 299,967 | 365,089 |
Expected release of risk adjustment | < 1 yr amount | 1 < 2 yrs amount | 2 < 3 yrs amount | | 3 < 4 yrs amount | | 4 < 5 yrs amount | | > 5 yrs amount | | Total amount | | ||||||||||||||||
2023 | ||||||||||||||||||||||||||||
Insurance contracts: | ||||||||||||||||||||||||||||
- Direct participating contracts | 30 | 35 | 32 | 29 | 29 | 413 | 568 | |||||||||||||||||||||
- Without direct participation contracts | 72 | 63 | 60 | 57 | 58 | 2,373 | 2,683 | |||||||||||||||||||||
Investment contracts with DPF: | ||||||||||||||||||||||||||||
- Direct participating contracts | 9 | 12 | 10 | 8 | 9 | 81 | 128 | |||||||||||||||||||||
- Without direct participation contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
Reinsurance contracts held, in a liability position | (12 | ) | (11 | ) | (11 | ) | (10 | ) | (10 | ) | (278 | ) | (332 | ) | ||||||||||||||
Total | 98 | 99 | 92 | 85 | 85 | 2,589 | 3,047 | |||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||
Insurance contracts: | ||||||||||||||||||||||||||||
- Direct participating contracts | 28 | 28 | 25 | 25 | 25 | 383 | 514 | |||||||||||||||||||||
- Without direct participation contracts | 91 | 80 | 74 | 70 | 69 | 2,539 | 2,922 | |||||||||||||||||||||
Investment contracts with DPF: | ||||||||||||||||||||||||||||
- Direct participating contracts | 9 | 9 | 7 | 8 | 7 | 69 | 109 | |||||||||||||||||||||
- Without direct participation contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
Reinsurance contracts held, in a liability position | 5 | 4 | 3 | 3 | 3 | 83 | 101 | |||||||||||||||||||||
Total | 133 | 120 | 110 | 106 | 104 | 3,073 | 3,646 |
Notes to the consolidated financial statements Note 5 | ||||
Maturity analysis – gross undiscounted contractual cash flows (for non-derivatives) | On demand | < 1 yr amount | 1 < 2 yrs amount | 2 < 3 yrs amount | 3 < 4 yrs amount | 4 < 5 yrs amount | < 5 yrs amount | Total amount | ||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||
Trust pass-through securities | - | 9 | 9 | 88 | 3 | 3 | 71 | 184 | ||||||||||||||||||||||||
Subordinated loans | - | 111 | 83 | 83 | 83 | 63 | 3,158 | 3,579 | ||||||||||||||||||||||||
Borrowings | - | 123 | 1,057 | 726 | 48 | 48 | 1,140 | 3,143 | ||||||||||||||||||||||||
Investment contracts | 34,464 | 40,059 | 11 | 8 | 110 | 23 | 74 | 74,749 | ||||||||||||||||||||||||
Lease liabilities | - | 34 | 29 | 24 | 21 | 18 | 114 | 240 | ||||||||||||||||||||||||
Other financial liabilities | 4,582 | 930 | 52 | 7 | - | 4 | - | 5,575 | ||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||
Trust pass-through securities | - | 10 | 10 | 10 | 92 | 3 | 77 | 200 | ||||||||||||||||||||||||
Subordinated loans | - | 113 | 113 | 85 | 85 | 85 | 3,309 | 3,792 | ||||||||||||||||||||||||
Borrowings | - | 1,312 | 155 | 2,867 | 61 | 47 | 594 | 5,036 | ||||||||||||||||||||||||
Investment contracts | 32,104 | 32,452 | 9 | 16 | 13 | 117 | 113 | 64,824 | ||||||||||||||||||||||||
Lease liabilities | - | 35 | 32 | 26 | 21 | 19 | 117 | 251 | ||||||||||||||||||||||||
Other financial liabilities | 4,259 | 623 | 284 | 54 | 17 | - | 81 | 5,318 |
2023 | ||||||||||||||||||||||||||||||||
Maturity analysis relating to derivatives 1) (Contractual cash flows), | On demand | < 1 yr amount | 1 < 2 yrs amount | 2 < 3 yrs amount | 3 < 4 yrs amount | 4 < 5 yrs amount | > 5 yr amount | Total amount | ||||||||||||||||||||||||
Gross settled | ||||||||||||||||||||||||||||||||
Cash inflows | - | 9,757 | 170 | 171 | 202 | 145 | 2,560 | 13,004 | ||||||||||||||||||||||||
Cash outflows | - | (9,710 | ) | (121 | ) | (134 | ) | (191 | ) | (134 | ) | (2,458 | ) | (12,748 | ) | |||||||||||||||||
Net settled | ||||||||||||||||||||||||||||||||
Cash inflows | - | 282 | 253 | 260 | 286 | 341 | 7,509 | 8,930 | ||||||||||||||||||||||||
Cash outflows | - | (560 | ) | (224 | ) | (244 | ) | (266 | ) | (271 | ) | (12,248 | ) | (13,813 | ) |
2022 | ||||||||||||||||||||||||||||||||
Maturity analysis relating to derivatives 1) (Contractual cash flows), | On demand | < 1 yr amount | 1 < 2 yrs amount | 2 < 3 yrs amount | 3 < 4 yrs amount | 4 < 5 yrs amount | > 5 yr amount | Total amount | | |||||||||||||||||||||||
Gross settled | ||||||||||||||||||||||||||||||||
Cash inflows | - | 15,315 | 156 | 146 | 155 | 188 | 2,570 | 18,530 | ||||||||||||||||||||||||
Cash outflows | - | (15,250 | ) | (104 | ) | (103 | ) | (123 | ) | (180 | ) | (2,385 | ) | (18,146 | ) | |||||||||||||||||
Net settled | ||||||||||||||||||||||||||||||||
Cash inflows | - | 1,552 | 1,295 | 1,060 | 964 | 933 | 10,039 | 15,843 | ||||||||||||||||||||||||
Cash outflows | - | (1,937 | ) | (1,285 | ) | (1,037 | ) | (962 | ) | (934 | ) | (17,914 | ) | (24,068 | ) |
Americas : which covers business units in the United States, |
The Netherlands : which |
United : which covers businesses activities from platform business and traditional insurance in the United Kingdom; |
International : which covers |
Asset : which covers business activities from AAM Global Platforms and Strategic Partnerships; |
![]() ∎ |
Holding and other |
Annual Report on Form 20-F 2023 | 207 |
![]() | About Aegon Governance and risk management Financial information | |||
∎ | Fair value items have reduced significantly, reflecting fewer accounting mismatches under the new accounting policies. |
∎ | Realized gains/(losses) on investments now includes realized gains and losses on financial assets measured at amortized cost and financial assets classified at FVOCI. |
∎ | Impairment losses and reversals of impairment losses reflect the change in ECL for financial assets. |
∎ | Other non-operating results continue to include items that cannot be directly allocated to a specific line of business and items that are outside the normal course of business. It no longer includes all impacts of actuarial and economic assumption and model updates as most of these are recorded in CSM, but only: |
∎ | the impact of changes in actuarial assumptions and model updates on onerous contracts, and |
∎ | the impact of changes in financial assumptions and the passage of time on onerous groups of VFA contracts to which no risk mitigation is applied. |
∎ | Changes in value of VFA products that result in (a reversal of) onerous contracts; |
∎ | Changes in discount rates for General model insurance contracts, including the revaluation of changes in non-financial assumptions and experience adjustments that adjust CSM to |
Notes to the consolidated financial statements Note 5 | ||||
Items which cannot be directly allocated to a specific line of business; |
The impact of changes in actuarial |
∎ | The impact of changes in financial assumptions and the passage of time on onerous groups of VFA contracts to which no risk mitigation is applied, and; |
Items that are outside the normal course of business, including restructuring charges. |
![]() |
Income statement - Operating result | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Eliminations | Segment total | Joint ventures and associates eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income statement - Operating result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income statement - Operating result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income statement - Operating result | Americas | The Nether- lands | 1) | United Kingdom | International | Asset Manage- ment | | Holding and other activities | | Eliminations | Segment total | Joint ventures and associates eliminations | | Consoli- dated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating result before tax | 788 | 755 | 184 | 145 | 253 | (219 | ) | (1 | ) | 1,906 | 42 | 1,948 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating result | 1,107 | - | 214 | 196 | 145 | (173 | ) | 10 | 1,498 | 19 | 1,517 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value items | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value items | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value items | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value items | 698 | 221 | (62 | ) | (18 | ) | (1 | ) | 12 | 3 | 854 | (123 | ) | 730 | 138 | - | (76 | ) | (1 | ) | (8 | ) | 24 | (1 | ) | 76 | 9 | 85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gains / (losses) on investments | 313 | 118 | 10 | 2 | 2 | 1 | (0 | ) | 446 | (9 | ) | 437 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gains / (losses) on investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gains / (losses) on investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gains / (losses) on investments | (683 | ) | - | - | 24 | - | - | - | (659 | ) | (30 | ) | (689 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charges | (19 | ) | (19 | ) | 0 | (0 | ) | (1 | ) | (11 | ) | (0 | ) | (49 | ) | (0 | ) | (49 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment reversals | 33 | 59 | 0 | 1 | 0 | 8 | 0 | 101 | 0 | 101 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment losses / (reversals) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment losses / (reversals) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment losses / (reversals) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment losses / (reversals) | (62 | ) | - | - | (23 | ) | - | (7 | ) | - | (92 | ) | 2 | (90 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating items | 1,025 | 378 | (51 | ) | (15 | ) | 0 | 11 | 3 | 1,352 | (132 | ) | 1,220 | (607 | ) | - | (76 | ) | (1 | ) | (8 | ) | 17 | (1 | ) | (675 | ) | (19 | ) | (695 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other income / (charges) | (667 | ) | (23 | ) | 1 | 65 | (18 | ) | (138 | ) | 0 | (780 | ) | 12 | (768 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income / (charges) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income / (charges) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income / (charges) | (961 | ) | (65 | ) | (85 | ) | (110 | ) | (31 | ) | 110 | 2 | (1,140 | ) | (90 | ) | (1,230 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Result before tax | 1,147 | 1,110 | 134 | 195 | 235 | (344 | ) | 2 | 2,478 | (78 | ) | 2,400 | (460 | ) | (65 | ) | 52 | 85 | 106 | (46 | ) | 11 | (317 | ) | (91 | ) | (408 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) / benefit | (137 | ) | (276 | ) | (12 | ) | (36 | ) | (65 | ) | 77 | (0 | ) | (449 | ) | 78 | (371 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) / benefit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) / benefit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) / benefit | 214 | - | (23 | ) | (69 | ) | (36 | ) | 31 | - | 118 | 91 | 209 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net result | 1,010 | 833 | 122 | 159 | 170 | (267 | ) | 2 | 2,029 | 0 | 2,029 | (246 | ) | (65 | ) | 29 | 16 | 70 | (14 | ) | 11 | (199 | ) | - | (199 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment operating result | (20 | ) | (95 | ) | (96 | ) | (31 | ) | 191 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment operating result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment operating result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment operating result | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums | 7,108 | 1,323 | 4,613 | 1,181 | 0 | 0 | 0 | 14,225 | (825 | ) | 13,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. | 9,468 | - | 600 | 1,095 | - | - | (51 | ) | 11,112 | (1,490 | ) | 9,622 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident and health insurance | 1,273 | 254 | 3 | 179 | 0 | 0 | 0 | 1,709 | (67 | ) | 1,643 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. | - | - | - | 700 | - | - | - | 700 | - | 700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General insurance | 0 | 136 | 0 | 432 | 0 | 0 | 0 | 569 | (168 | ) | 401 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts with discretionary participation features revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts with discretionary participation features revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts with discretionary participation features revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts with discretionary participation features revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gross premiums | 8,381 | 1,713 | 4,616 | 1,793 | 0 | 0 | (0 | ) | 16,504 | (1,060 | ) | 15,444 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. | - | - | 64 | - | - | - | - | 64 | - | 64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income | 2,910 | 2,088 | 1,691 | 360 | 12 | 242 | (261 | ) | 7,042 | (75 | ) | 6,967 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance revenue | 9,468 | - | 663 | 1,795 | - | - | (51 | ) | 11,876 | (1,490 | ) | 10,386 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method | 3,108 | - | 58 | 87 | 2 | 90 | (6 | ) | 3,339 | (3 | ) | 3,336 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest revenue on financial instruments measured at FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest revenue on financial instruments measured at FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest revenue on financial instruments measured at FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest revenue on financial instruments measured at FVPL | 339 | - | 486 | 1 | - | - | - | 826 | - | 826 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investment income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investment income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investment income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investment income | 14 | - | 1,818 | 104 | 14 | 498 | (498 | ) | 1,950 | (116 | ) | 1,833 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee and commission income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee and commission income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee and commission income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee and commission income | 1,920 | 300 | 223 | 59 | 800 | 0 | (183 | ) | 3,120 | (335 | ) | 2,785 | 1,653 | - | 214 | 34 | 632 | - | (158 | ) | 2,376 | (215 | ) | 2,160 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 11 | 0 | 0 | 2 | 2 | 12 | 0 | 27 | (15 | ) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | - | - | - | 37 | 1 | - | - | 38 | (38 | ) | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 13,222 | 4,101 | 6,531 | 2,215 | 814 | 254 | (444 | ) | 26,693 | (1,484 | ) | 25,209 | 14,582 | - | 3,239 | 2,058 | 649 | 589 | (713 | ) | 20,404 | (1,862 | ) | 18,541 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment revenues | 1 | 14 | 0 | 0 | 182 | 247 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment revenues | 49 | - | - | 1 | 172 | 500 |
1 | The net result represents the standalone result of ‘The Netherlands’. After elimination, the remaining result is EUR (17). See note 45 Held for sale and discontinued operations for more details. |
Annual Report on Form 20-F 2023 | 209 |
![]() | About Aegon Governance and risk management Financial information | |||
Income statement - Operating result | Americas | The Nether- lands | 1) | United Kingdom | International | Asset Manage- ment | | Holding and other activities | | Eliminations | Segment total | Joint ventures and associates eliminations | | Consoli- dated | ||||||||||||||||||||||||||
Year ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
Operating result | 1,433 | - | 211 | 202 | 193 | (220 | ) | (17 | ) | 1,802 | (59 | ) | 1,743 | |||||||||||||||||||||||||||
Fair value items | (85 | ) | - | (71 | ) | 38 | (3 | ) | (21 | ) | (76 | ) | (218 | ) | 8 | (209 | ) | |||||||||||||||||||||||
Realized gains / (losses) on investments | (518 | ) | - | - | 30 | - | 7 | - | (481 | ) | (16 | ) | (497 | ) | ||||||||||||||||||||||||||
Impairment losses / (reversals) | (78 | ) | - | (11 | ) | (14 | ) | - | (18 | ) | - | (122 | ) | 1 | (121 | ) | ||||||||||||||||||||||||
Non-operating items | (681 | ) | - | (83 | ) | 54 | (3 | ) | (32 | ) | (76 | ) | (820 | ) | (7 | ) | (827 | ) | ||||||||||||||||||||||
Other income / (charges) | (117 | ) | (1,373 | ) | (64 | ) | 326 | (19 | ) | (118 | ) | - | (1,365 | ) | (19 | ) | (1,384 | ) | ||||||||||||||||||||||
Result before tax | 636 | (1,373 | ) | 64 | 582 | 171 | (371 | ) | (93 | ) | (384 | ) | (85 | ) | (469 | ) | ||||||||||||||||||||||||
Income tax (expense) / benefit | (102 | ) | - | 2 | (57 | ) | (67 | ) | 68 | - | (156 | ) | 85 | (71 | ) | |||||||||||||||||||||||||
Net result | 533 | (1,373 | ) | 67 | 526 | 104 | (303 | ) | (93 | ) | (540 | ) | - | (540 | ) | |||||||||||||||||||||||||
Inter-segment operating result | (458 | ) | (94 | ) | (75 | ) | 236 | 188 | 203 | |||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Insurance contracts revenue | ||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. | 10,174 | - | 628 | 967 | - | - | (32 | ) | 11,736 | (1,210 | ) | 10,526 | ||||||||||||||||||||||||||||
- Insurance contracts: without direct part. | - | - | - | 651 | - | - | - | 651 | - | 651 | ||||||||||||||||||||||||||||||
Investment contracts with discretionary participation features revenue | ||||||||||||||||||||||||||||||||||||||||
- Insurance contracts: direct part. | - | - | 74 | - | - | - | - | 74 | - | 74 | ||||||||||||||||||||||||||||||
- Insurance contracts: without direct part. | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Insurance revenue | 10,174 | - | 701 | 1,618 | - | - | (32 | ) | 12,461 | (1,210 | ) | 11,251 | ||||||||||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method | 3,105 | - | 12 | 191 | - | 2 | (5 | ) | 3,306 | (3 | ) | 3,303 | ||||||||||||||||||||||||||||
Interest revenue on financial instruments measured at FVPL | 228 | - | 399 | (3 | ) | - | - | - | 624 | - | 624 | |||||||||||||||||||||||||||||
Other investment income | 32 | - | 1,530 | 100 | 12 | 425 | (425 | ) | 1,673 | (110 | ) | 1,564 | ||||||||||||||||||||||||||||
Fee and commission income | 1,756 | - | 223 | 62 | 693 | - | (187 | ) | 2,548 | (254 | ) | 2,294 | ||||||||||||||||||||||||||||
Other revenues | - | - | - | 25 | 5 | - | - | 30 | (30 | ) | - | |||||||||||||||||||||||||||||
Total revenues | 15,295 | - | 2,865 | 1,993 | 710 | 427 | (648 | ) | 20,642 | (1,607 | ) | 19,035 | ||||||||||||||||||||||||||||
Inter-segment revenues | 33 | - | - | - | 208 | 426 |
1 | The net result represents the standalone result of ‘The Netherlands’. After elimination and considering the result included in the Holdings and other activities, the remaining result is EUR (1,746). See note 45 Held for sale and discontinued operations for more details |
Notes to the consolidated financial statements Note 5 | ||||
Income statement -Operating result | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Eliminations | Segment total | Joint ventures and associates eliminations | Consolidated | ||||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||||
Operating result before tax | 792 | 665 | 144 | 164 | 182 | (237) | 1 | 1,710 | 31 | 1,741 | ||||||||||||||||||||||||||||||
Fair value items | (448 | ) | (230 | ) | (2 | ) | (7 | ) | 22 | (36 | ) | - | (701 | ) | (87 | ) | (788 | ) | ||||||||||||||||||||||
Realized gains / (losses) on investments | 93 | 14 | - | 46 | 1 | (3 | ) | - | 150 | (8 | ) | 142 | ||||||||||||||||||||||||||||
Impairment charges | (173 | ) | (50 | ) | - | (16 | ) | (1 | ) | (25 | ) | - | (265 | ) | 1 | (264 | ) | |||||||||||||||||||||||
Impairment reversals | 27 | 1 | - | - | - | - | - | 28 | 0 | 28 | ||||||||||||||||||||||||||||||
Non-operating items | (501 | ) | (265 | ) | (1 | ) | 22 | 22 | (65 | ) | - | (788 | ) | (94 | ) | (881 | ) | |||||||||||||||||||||||
Other income / (charges) | (1,110 | ) | 78 | (68 | ) | (1 | ) | (8 | ) | (130 | ) | - | (1,239 | ) | 15 | (1,224 | ) | |||||||||||||||||||||||
Result before tax | (819 | ) | 478 | 74 | 186 | 195 | (433 | ) | 1 | (317 | ) | (47 | ) | (364 | ) | |||||||||||||||||||||||||
Income tax (expense) / benefit | 284 | (107 | ) | (7 | ) | (22 | ) | (44 | ) | 78 | (0 | ) | 181 | 47 | 229 | |||||||||||||||||||||||||
Net result | (535 | ) | 371 | 67 | 164 | 151 | (355 | ) | 1 | (135 | ) | 0 | (135 | ) | ||||||||||||||||||||||||||
Inter-segment operating result | (40 | ) | (87 | ) | (86 | ) | (35 | ) | 193 | 62 | ||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums | 7,105 | 1,619 | 4,833 | 1,095 | - | 4 | (3 | ) | 14,654 | (726 | ) | 13,929 | ||||||||||||||||||||||||||||
Accident and health insurance | 1,380 | 245 | 25 | 193 | - | - | - | 1,844 | (59 | ) | 1,784 | |||||||||||||||||||||||||||||
General insurance | - | 130 | - | 388 | - | - | (0 | ) | 519 | (132 | ) | 386 | ||||||||||||||||||||||||||||
Total gross premiums | 8,485 | 1,994 | 4,858 | 1,677 | - | 5 | (3 | ) | 17,016 | (917 | ) | 16,099 | ||||||||||||||||||||||||||||
Investment income | 2,986 | 2,083 | 1,795 | 362 | 7 | 261 | (281 | ) | 7,212 | (63 | ) | 7,149 | ||||||||||||||||||||||||||||
Fee and commission income | 1,653 | 255 | 194 | 50 | 750 | (9 | ) | (180 | ) | 2,713 | (308 | ) | 2,405 | |||||||||||||||||||||||||||
Other revenues | 7 | - | - | 1 | 2 | 3 | - | 14 | (10 | ) | 4 | |||||||||||||||||||||||||||||
Total revenues | 13,131 | 4,332 | 6,847 | 2,091 | 759 | 260 | (465 | ) | 26,955 | (1,298 | ) | 25,657 | ||||||||||||||||||||||||||||
Inter-segment revenues | 1 | 21 | - | - | 188 | 264 |
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Income statement - Operating result | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Eliminations | Segment total | Joint ventures and associates eliminations | Consolidated | ||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||
Operating result before tax | 1,041 | 648 | 139 | 154 | 139 | (228 | ) | 1 | 1,894 | 50 | 1,944 | |||||||||||||||||||||||||||||
Fair value items | 378 | (741 | ) | (131 | ) | (7 | ) | - | (4 | ) | (0 | ) | (504 | ) | (88 | ) | (592 | ) | ||||||||||||||||||||||
Realized gains / (losses) on investments | 125 | 240 | 3 | 36 | - | 1 | - | 405 | (2 | ) | 403 | |||||||||||||||||||||||||||||
Impairment charges | (54 | ) | (39 | ) | - | (1 | ) | - | (10 | ) | - | (104 | ) | - | (104 | ) | ||||||||||||||||||||||||
Impairment reversals | 68 | 5 | - | 1 | - | - | - | 73 | - | 73 | ||||||||||||||||||||||||||||||
Non-operating items | 517 | (535 | ) | (128 | ) | 29 | - | (13 | ) | - | (129 | ) | (90 | ) | (220 | ) | ||||||||||||||||||||||||
Other income / (charges) | (156 | ) | (1 | ) | (38 | ) | 15 | (7 | ) | (95 | ) | - | (281 | ) | - | (281 | ) | |||||||||||||||||||||||
Result before tax | 1,403 | 121 | (27 | ) | 198 | 133 | (335 | ) | 1 | 1,493 | (40 | ) | 1,453 | |||||||||||||||||||||||||||
Income tax (expense) / benefit | (220 | ) | (27 | ) | (7 | ) | (33 | ) | (36 | ) | 65 | 0 | (257 | ) | 40 | (217 | ) | |||||||||||||||||||||||
Net result | 1,183 | 94 | (34 | ) | 165 | 97 | (270 | ) | 1 | 1,236 | - | 1,236 | ||||||||||||||||||||||||||||
Inter-segment operating result | (61 | ) | (105 | ) | (87 | ) | (20 | ) | 193 | 79 | ||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums | 7,279 | 1,765 | 6,282 | 1,289 | - | 11 | (8 | ) | 16,617 | (691 | ) | 15,926 | ||||||||||||||||||||||||||||
Accident and health insurance | 1,416 | 228 | 28 | 201 | - | - | - | 1,872 | (50 | ) | 1,823 | |||||||||||||||||||||||||||||
General insurance | - | 130 | - | 382 | - | 1 | (1 | ) | 512 | (122 | ) | 390 | ||||||||||||||||||||||||||||
Total gross premiums | 8,694 | 2,123 | 6,309 | 1,872 | - | 12 | (9 | ) | 19,002 | (864 | ) | 18,138 | ||||||||||||||||||||||||||||
Investment income | 3,172 | 2,224 | 1,830 | 379 | 5 | 269 | (284 | ) | 7,595 | (64 | ) | 7,531 | ||||||||||||||||||||||||||||
Fee and commission income | 1,757 | 237 | 197 | 109 | 627 | - | (187 | ) | 2,740 | (218 | ) | 2,523 | ||||||||||||||||||||||||||||
Other revenues | 8 | - | - | 2 | 1 | 5 | - | 16 | (10 | ) | 6 | |||||||||||||||||||||||||||||
Total revenues | 13,631 | 4,583 | 8,337 | 2,362 | 633 | 286 | (480 | ) | 29,352 | (1,155 | ) | 28,197 | ||||||||||||||||||||||||||||
Inter-segment revenues | 1 | 12 | - | - | 187 | 280 |
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Presentation Non-Operating result | Note | 2021 | 2020 | 2019 | ||||||||||||
Operating result | 1,906 | 1,710 | 1,894 | |||||||||||||
Elimination of share in earnings of joint ventures and associates | 42 | 31 | 50 | |||||||||||||
Premium income | 6 | (5 | ) | 4 | (1 | ) | ||||||||||
Rental income | 7 | (71 | ) | (68 | ) | (76 | ) | |||||||||
Dividend income | 7 | 76 | (40 | ) | 9 | |||||||||||
Fee and commission income | 8 | 30 | (5 | ) | - | |||||||||||
Recovered claims and benefits | 9 | (31 | ) | (143 | ) | 7 | ||||||||||
Change in valuation of reinsurance ceded | 9 | (43 | ) | 86 | - | |||||||||||
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives | 10 | (4 | ) | (421 | ) | (89 | ) | |||||||||
Net fair value change on borrowings and other financial liabilities | 10 | (13 | ) | 2 | 7 | |||||||||||
Realized gains and losses on financial investments | 10 | 463 | 132 | 399 | ||||||||||||
Gains and (losses) on investments in real estate | 10 | 253 | 74 | 317 | ||||||||||||
Net fair value change of derivatives | 10 | (471 | ) | 613 | 163 | |||||||||||
Other income | 11 | 77 | 68 | 200 | ||||||||||||
Benefits and claims paid life | 12 | (217 | ) | 0 | 0 | |||||||||||
Change in valuation of liabilities for insurance contracts | 12 | 994 | (1,422 | ) | (1,061 | ) | ||||||||||
Change in valuation of liabilities for investment contracts | 12 | (8 | ) | (7 | ) | (13 | ) | |||||||||
Policyholder claims and benefits - Other | 12 | 38 | 19 | 50 | ||||||||||||
Commissions and expenses | 14 | (715 | ) | (450 | ) | (318 | ) | |||||||||
Impairment (charges) reversals | 15 | 53 | (318 | ) | (105 | ) | ||||||||||
Interest charges and related fees | 16 | 0 | (82 | ) | 21 | |||||||||||
Other charges | 17 | (37 | ) | (150 | ) | (1 | ) | |||||||||
Results of CEE businesses which were previously reported in operating results | 85 | 0 | 0 | |||||||||||||
Result before tax | 2,400 | (364 | ) | 1,453 |
Presentation Non-operating items and other income/ (charges) | Note | 2023 | 2022 | |||||||||
Result before tax from continuing operations | (391 | ) | 827 | |||||||||
Elimination of share in earnings of joint ventures and associates | (19 | ) | 59 | |||||||||
Insurance revenue | 6 | (15 | ) | 1 | ||||||||
Insurance service expenses | 7 | 427 | 442 | |||||||||
Net income / (expenses) on reinsurance held | 8 | (23 | ) | (40 | ) | |||||||
Net fair value change of financial investments at fair value through profit or loss, other than derivatives | 9.4 / 10.4 | (224 | ) | 183 | ||||||||
Net fair value change of derivatives | (7 | ) | - | |||||||||
Realized gains and losses on financial investments | 9.4 / 10.4 | 683 | 670 | |||||||||
Net fair value change on investments in real estate | 9.4 / 10.4 | (2 | ) | (1 | ) | |||||||
Impairment (losses) reversals | 9.5 / 10.5 | 90 | 121 | |||||||||
Insurance finance income / (expenses) | 9 | 375 | (614 | ) | ||||||||
Net reinsurance finance income / (expenses) on reinsurance held | 9 | (85 | ) | 68 | ||||||||
Investment contract income / (expenses) | 10 | (5 | ) | (2 | ) | |||||||
Net fair value change on borrowings and other financial liabilities | - | (5 | ) | |||||||||
Fee and commission income | 12 | (11 | ) | (14 | ) | |||||||
Commissions and expenses | 13 | 596 | 378 | |||||||||
Other income | 14 | (18 | ) | (341 | ) | |||||||
Other charges | 14 | 79 | - | |||||||||
Results of businesses disposed during reporting periods | 48 | 70 | ||||||||||
Operating result | 1,498 | 1,802 |
∎ | Insurance service expenses are mainly driven by two items: |
Assumption changes on onerous contracts amounting to a loss of EUR 497 million (2022: loss of EUR 93 million), which is included in Other income / (charges). |
∎ | Change in value of VFA products that result in (a reversal of) onerous contracts, amounting to a gain of EUR 129 million (2022: loss of 273 million), which is included in Fair value items. |
∎ | Net income / (expenses) on reinsurance held mainly consist of assumption changes that relate to (a reversal of) underlying onerous contracts, amounting to a gain of EUR 31 million (2022: gain of EUR 38 million), which is included in Other income / (charges). |
∎ | Net fair value change of |
∎ | Insurance finance income / (expenses) mainly relate to changes in discount rates, amounting to a loss of EUR 354 million (2022: a gain of EUR 614 million), which is included in Fair value items. |
Net |
Commissions and expenses, |
Annual Report on |
Form 20-F 2023 | |
![]() | Financial information | |||
Americas | United Kingdom | International | Asset Management | Holding and other activities | | Total | ||||||||||||||||||
2023 | ||||||||||||||||||||||||
Amortization of deferred expenses and future servicing rights | 24 | 2 | 1 | 6 | - | 33 | ||||||||||||||||||
Depreciation | 64 | 12 | 5 | 2 | 14 | 97 | ||||||||||||||||||
Impairment losses / (reversals) on financial assets, excluding receivables | 59 | - | - | - | - | 59 | ||||||||||||||||||
Impairment losses / (reversals) on non- financial assets and receivables | 32 | - | 21 | - | 7 | 60 | ||||||||||||||||||
2022 | ||||||||||||||||||||||||
Amortization of deferred expenses and future servicing rights | 34 | 2 | 3 | - | - | 38 | ||||||||||||||||||
Depreciation | 67 | 11 | 6 | 2 | 17 | 103 | ||||||||||||||||||
Impairment losses / (reversals) on financial assets, excluding receivables | 78 | - | 13 | - | - | 92 | ||||||||||||||||||
Impairment losses / (reversals) on non- financial assets and receivables | 17 | 11 | - | - | 18 | 46 |
Number of employees | Americas | United Kingdom | International | Asset Management | Holding and other activities | | Total | |||||||||||||||||
2023 | ||||||||||||||||||||||||
Number of employees - headcount | 6,967 | 2,591 | 3,654 | 1,409 | 1,037 | 15,658 | ||||||||||||||||||
Of which Aegon’s share of employees in joint ventures and associates 1) | - | 49 | 2,936 | 219 | - | 3,204 | ||||||||||||||||||
2022 | ||||||||||||||||||||||||
Number of employees - headcount | 6,153 | 2,621 | 4,281 | 1,464 | 958 | 15,478 | ||||||||||||||||||
Of which Aegon’s share of employees in joint ventures and associates | - | 62 | 3,239 | 206 | - | 3,507 |
1 | Excludes a.s.r. as the |
Other selected income statement items | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Total | |||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||
Amortization of deferred expenses, VOBA and future servicing rights | 929 | - | 113 | 61 | - | - | 1,103 | |||||||||||||||||||||
Depreciation | 56 | 20 | 6 | 15 | 2 | 1 | 99 | |||||||||||||||||||||
Impairment charges / (reversals) on financial assets, excluding receivables | (23 | ) | (14 | ) | - | - | - | (8 | ) | (45 | ) | |||||||||||||||||
Impairment charges / (reversals) on non- financial assets and receivables | 37 | 12 | - | - | 1 | 11 | 60 | |||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||
Amortization of deferred expenses, VOBA and future servicing rights | 637 | - | 119 | 97 | - | - | 854 | |||||||||||||||||||||
Depreciation | 56 | 20 | 9 | 12 | 2 | 1 | 101 | |||||||||||||||||||||
Impairment charges / (reversals) on financial assets, excluding receivables | 151 | 86 | - | 15 | - | 11 | 262 | |||||||||||||||||||||
Impairment charges / (reversals) on non- financial assets and receivables | 72 | 21 | 17 | 0 | 4 | 14 | 128 | |||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||
Amortization of deferred expenses, VOBA and future servicing rights | 687 | 4 | 117 | 66 | - | - | 875 | |||||||||||||||||||||
Depreciation | 44 | 18 | 12 | 11 | 1 | 2 | 87 | |||||||||||||||||||||
Impairment charges / (reversals) on financial assets, excluding receivables | (12 | ) | 72 | - | 0 | - | - | 60 | ||||||||||||||||||||
Impairment charges / (reversals) on non- financial assets and receivables | 3 | 94 | - | 3 | - | 10 | 109 |
![]() |
Number of employees | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Total | |||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||
Number of employees - headcount | 7,675 | 3,534 | 2,476 | 6,590 | 1,675 | 321 | 22,271 | |||||||||||||||||||||
Of which Aegon’s share of employees in joint ventures and associates | 733 | - | 59 | 3,245 | 191 | - | 4,228 | |||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||
Number of employees - headcount | 7,960 | 3,521 | 2,307 | 6,598 | 1,527 | 409 | 22,322 | |||||||||||||||||||||
Of which Aegon’s share of employees in joint ventures and associates | 669 | - | 47 | 3,294 | 183 | - | 4,193 | |||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||
Number of employees - headcount | 8,570 | 3,582 | 2,261 | 7,393 | 1,535 | 416 | 23,757 | |||||||||||||||||||||
Of which Aegon’s share of employees in joint ventures and associates | 651 | - | 62 | 4,276 | 173 | - | 5,162 |
Summarized assets and liabilities per segment | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Eliminations | Total | ||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and Cash equivalents | 1,127 | 3,718 | 210 | 282 | 311 | 1,242 | - | 6,889 | ||||||||||||||||||||||||
Investments | 80,938 | 66,384 | 1,876 | 8,315 | 296 | 21 | - | 157,831 | ||||||||||||||||||||||||
Investments for account of policyholders | 115,596 | 25,673 | 108,713 | 974 | - | - | (4 | ) | 250,953 | |||||||||||||||||||||||
Investments in joint ventures | 56 | 343 | - | 936 | 368 | 39 | - | 1,743 | ||||||||||||||||||||||||
Investments in associates | - | 1,103 | 9 | 18 | 151 | 20 | (12 | ) | 1,289 | |||||||||||||||||||||||
Deferred expenses | 9,052 | 235 | 825 | 391 | - | - | - | 10,503 | ||||||||||||||||||||||||
Other assets | 27,268 | 9,318 | 2,125 | 2,064 | 199 | 31,733 | (33,663 | ) | 39,044 | |||||||||||||||||||||||
Total assets | 234,037 | 106,775 | 113,758 | 12,979 | 1,326 | 33,056 | (33,679 | ) | 468,252 | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Insurance contracts | 74,967 | 40,547 | 1,490 | 9,028 | - | - | (1,611 | ) | 124,422 | |||||||||||||||||||||||
Insurance contracts for account of policyholders | 83,316 | 25,294 | 39,955 | 758 | - | - | - | 149,323 | ||||||||||||||||||||||||
Investment contracts | 9,804 | 11,767 | 194 | 2 | - | - | - | 21,767 | ||||||||||||||||||||||||
Investment contracts for account of policyholders | 32,280 | 2,273 | 69,819 | 220 | - | - | - | 104,592 | ||||||||||||||||||||||||
Other liabilities | 17,382 | 19,875 | 799 | 518 | 540 | 6,685 | (4,022 | ) | 41,776 | |||||||||||||||||||||||
Total liabilities | 217,750 | 99,757 | 112,257 | 10,526 | 540 | 6,685 | (5,633 | ) | 441,881 |
Notes to the consolidated financial statements Note 5 | ||||
Summarized assets and liabilities per segment | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Eliminations | Total | ||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and Cash equivalents | 903 | 5,689 | 257 | 211 | 374 | 938 | - | 8,372 | ||||||||||||||||||||||||
Investments | 77,431 | 68,561 | 1,994 | 8,238 | 208 | 108 | - | 156,541 | ||||||||||||||||||||||||
Investments for account of policyholders | 104,374 | 25,603 | 93,240 | 959 | - | - | (3 | ) | 224,172 | |||||||||||||||||||||||
Investments in joint ventures | 0 | 327 | - | 846 | 204 | 0 | - | 1,376 | ||||||||||||||||||||||||
Investments in associates | 60 | 1,004 | 8 | 35 | 151 | 21 | (15 | ) | 1,264 | |||||||||||||||||||||||
Deferred expenses | 7,555 | 136 | 819 | 289 | - | - | - | 8,799 | ||||||||||||||||||||||||
Other assets | 26,552 | 13,642 | 2,664 | 1,905 | 171 | 33,252 | (34,896 | ) | 43,290 | |||||||||||||||||||||||
Total assets | 216,875 | 114,962 | 98,982 | 12,482 | 1,109 | 34,319 | (34,914 | ) | 443,814 | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Insurance contracts | 69,392 | 44,242 | 1,458 | 8,542 | - | - | (1,488 | ) | 122,146 | |||||||||||||||||||||||
Insurance contracts for account of policyholders | 76,506 | 25,085 | 33,078 | 772 | - | - | - | 135,441 | ||||||||||||||||||||||||
Investment contracts | 8,156 | 12,732 | 185 | 2 | - | - | - | 21,075 | ||||||||||||||||||||||||
Investment contracts for account of policyholders | 27,868 | 2,473 | 61,092 | 191 | - | - | - | 91,624 | ||||||||||||||||||||||||
Other liabilities | 19,265 | 24,249 | 1,614 | 573 | 515 | 9,658 | (7,007 | ) | 48,867 | |||||||||||||||||||||||
Total liabilities | 201,188 | 108,780 | 97,427 | 10,080 | 515 | 9,658 | (8,495 | ) | 419,153 |
Americas | United Kingdom | International | Asset manage- ment | | Holding and other activities | | Eliminations | Total | ||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and Cash equivalents | 1,042 | 200 | 106 | 246 | 2,479 | - | 4,074 | |||||||||||||||||||||
Assets held for sale | - | 432 | - | - | - | - | 432 | |||||||||||||||||||||
Investments | 161,715 | 102,795 | 1,678 | 176 | 18 | - | 266,382 | |||||||||||||||||||||
Investments in joint ventures | - | - | 1,034 | 397 | - | - | 1,430 | |||||||||||||||||||||
Investments in associates | - | - | 5 | 279 | 2,622 | - | 2,906 | |||||||||||||||||||||
Reinsurance contract assets | 16,563 | 2 | 5,656 | - | - | (5,613 | ) | 16,608 | ||||||||||||||||||||
Insurance contract assets | 181 | - | 3 | - | - | - | 185 | |||||||||||||||||||||
Deferred expenses | 428 | 19 | - | - | - | - | 447 | |||||||||||||||||||||
Other assets | 6,486 | 1,818 | 183 | 359 | 8,095 | (7,823 | ) | 9,118 | ||||||||||||||||||||
Total assets | 186,415 | 105,265 | 8,664 | 1,457 | 13,215 | (13,436 | ) | 301,581 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Reinsurance contract liabilities | 396 | - | 211 | - | - | - | 608 | |||||||||||||||||||||
Insurance contract liabilities | 136,116 | 40,329 | 6,628 | - | - | (5,626 | ) | 177,446 | ||||||||||||||||||||
Investment contracts with discretionary participating features | - | 21,594 | - | - | - | - | 21,594 | |||||||||||||||||||||
Investment contracts without discretionary participating features | 35,181 | 40,085 | - | - | - | - | 75,266 | |||||||||||||||||||||
Liabilities held for sale / disposal groups | - | 389 | - | - | - | - | 389 | |||||||||||||||||||||
Other liabilities | 11,257 | 1,418 | 219 | 397 | 3,660 | (228 | ) | 16,723 | ||||||||||||||||||||
Total liabilities | 182,950 | 103,815 | 7,058 | 397 | 3,660 | (5,854 | ) | 292,026 |
Americas | The Nether- lands | | United Kingdom | Interna- tional | Asset manage- ment | | Holding and other activities | | Elimina- tions | Total | ||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and Cash equivalents | 1,097 | - | 182 | 116 | 367 | 1,639 | - | 3,402 | ||||||||||||||||||||||||
Assets held for sale | - | 88,664 | - | - | - | - | - | 88,664 | ||||||||||||||||||||||||
Investments | 160,624 | - | 91,463 | 2,497 | 136 | 39 | - | 254,759 | ||||||||||||||||||||||||
Investments in joint ventures | - | - | - | 959 | 471 | - | - | 1,430 | ||||||||||||||||||||||||
Investments in associates | - | 11 | - | 20 | 129 | 16 | (11 | ) | 165 | |||||||||||||||||||||||
Reinsurance contract assets | 16,520 | - | 369 | 6,273 | - | - | (6,223 | ) | 16,939 | |||||||||||||||||||||||
Insurance contract assets | 36 | - | - | - | - | - | - | 36 | ||||||||||||||||||||||||
Deferred expenses | 432 | - | 20 | - | - | - | - | 452 | ||||||||||||||||||||||||
Other assets | 9,652 | 1,076 | 1,973 | 336 | 146 | 16,455 | (14,774 | ) | 14,864 | |||||||||||||||||||||||
Total assets | 188,362 | 89,751 | 94,007 | 10,201 | 1,249 | 18,148 | (21,008 | ) | 380,711 | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Reinsurance contract liabilities | 62 | - | - | 208 | - | - | - | 270 | ||||||||||||||||||||||||
Insurance contract liabilities | 137,195 | (0 | ) | 37,621 | 7,570 | - | - | (6,266 | ) | 176,120 | ||||||||||||||||||||||
Investment contracts with discretionary participating features | - | - | 21,055 | - | - | - | - | 21,055 | ||||||||||||||||||||||||
Investment contracts without discretionary participating features | 32,788 | - | 32,440 | - | - | - | - | 65,227 | ||||||||||||||||||||||||
Liabilities held for sale / disposal groups | - | 84,183 | - | - | - | - | - | 84,183 | ||||||||||||||||||||||||
Other liabilities | 14,920 | 934 | 1,344 | 281 | 424 | 7,213 | (2,196 | ) | 22,922 | |||||||||||||||||||||||
Total liabilities | 184,965 | 85,117 | 92,460 | 8,059 | 424 | 7,213 | (8,462 | ) | 369,777 |
Investments | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Eliminations | Total | ||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Shares | 493 | 1,410 | 29 | 72 | 9 | 1 | 0 | 2,015 | ||||||||||||||||||||||||
Debt securities | 61,014 | 26,951 | 1,159 | 8,060 | 11 | 0 | 0 | 97,195 | ||||||||||||||||||||||||
Loans | 11,352 | 35,358 | 0 | 93 | 0 | 20 | 0 | 46,823 | ||||||||||||||||||||||||
Other financial assets | 8,040 | 79 | 687 | 73 | 276 | 0 | 0 | 9,155 | ||||||||||||||||||||||||
Investments in real estate | 39 | 2,588 | 0 | 16 | 0 | 0 | 0 | 2,643 | ||||||||||||||||||||||||
Investments general account | 80,938 | 66,384 | 1,876 | 8,315 | 296 | 21 | 0 | 157,831 | ||||||||||||||||||||||||
Shares | 0 | 9,078 | 20,221 | 243 | 0 | 0 | (4 | ) | 29,539 | |||||||||||||||||||||||
Debt securities | 0 | 12,044 | 7,649 | 128 | 0 | 0 | 0 | 19,821 | ||||||||||||||||||||||||
Unconsolidated investment funds | 115,596 | 1,059 | 74,698 | 597 | 0 | 0 | 0 | 191,950 | ||||||||||||||||||||||||
Other financial assets | 0 | 3,493 | 5,581 | 6 | 0 | 0 | 0 | 9,080 | ||||||||||||||||||||||||
Investments in real estate | 0 | 0 | 563 | 0 | 0 | 0 | 0 | 563 | ||||||||||||||||||||||||
Investments for account of policyholders | 115,596 | 25,673 | 108,713 | 974 | 0 | 0 | (4 | ) | 250,953 | |||||||||||||||||||||||
Investments on balance sheet | 196,534 | 92,058 | 110,589 | 9,288 | 296 | 21 | (4 | ) | 408,784 | |||||||||||||||||||||||
Off-balance sheet investments third parties | 240,248 | 7,711 | 151,097 | 2,300 | 212,779 | 0 | 0 | 614,136 | ||||||||||||||||||||||||
Total revenue-generating investments | 436,782 | 99,769 | 261,687 | 11,589 | 213,076 | 21 | (4 | ) | 1,022,920 | |||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
Available-for-sale | 65,694 | 24,443 | 1,299 | 8,191 | 257 | 0 | 0 | 99,884 | ||||||||||||||||||||||||
Loans | 11,352 | 35,358 | 0 | 93 | 0 | 20 | 0 | 46,823 | ||||||||||||||||||||||||
Financial assets at fair value through profit or loss | 119,450 | 29,669 | 108,727 | 987 | 40 | 1 | (4 | ) | 258,871 | |||||||||||||||||||||||
Investments in real estate | 39 | 2,588 | 563 | 16 | 0 | 0 | 0 | 3,206 | ||||||||||||||||||||||||
Total investments on balance sheet | 196,534 | 92,058 | 110,589 | 9,288 | 296 | 21 | (4 | ) | 408,784 | |||||||||||||||||||||||
Investments in joint ventures | 56 | 343 | 0 | 936 | 368 | 39 | 0 | 1,743 | ||||||||||||||||||||||||
Investments in associates | 0 | 1,103 | 9 | 18 | 151 | 20 | (12 | ) | 1,289 | |||||||||||||||||||||||
Other assets | 37,447 | 13,271 | 3,160 | 2,736 | 510 | 32,975 | (33,663 | ) | 56,436 | |||||||||||||||||||||||
Consolidated total assets | 234,037 | 106,775 | 113,758 | 12,979 | 1,326 | 33,056 | (33,679 | ) | 468,252 |
Annual Report on Form 20-F 2023 | 213 |
![]() | About Aegon Governance and risk management Financial information | |||
Americas | United Kingdom | International | Asset Management | Holding and other activities | | Eliminations | Total | |||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||
Shares | 267 | 16,192 | 23 | 9 | - | - | 16,491 | |||||||||||||||||||||
Debt securities | 47,547 | 6,916 | 1,295 | 52 | - | - | 55,811 | |||||||||||||||||||||
Unconsolidated investment funds | 92,520 | 74,719 | 173 | - | - | - | 167,411 | |||||||||||||||||||||
Loans | 10,156 | 2,269 | 3 | - | 18 | - | 12,446 | |||||||||||||||||||||
Other financial assets | 11,187 | 2,266 | 166 | 115 | - | - | 13,735 | |||||||||||||||||||||
Investments in real estate | 38 | 433 | 17 | - | - | - | 488 | |||||||||||||||||||||
Total investments on balance sheet | 161,715 | 102,795 | 1,678 | 176 | 18 | - | 266,382 | |||||||||||||||||||||
Off-balance sheet investments third parties | 225,090 | 135,270 | 3,711 | 195,304 | - | - | 559,375 | |||||||||||||||||||||
Total revenue-generating investments | 386,806 | 238,064 | 5,389 | 195,480 | 18 | - | 825,757 | |||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||
Financial assets measured at FVOCI | ||||||||||||||||||||||||||||
Backing insurance contracts without direct participation | 42,973 | - | 1,439 | - | - | - | 44,412 | |||||||||||||||||||||
Backing investment contracts without direct participation | 5,854 | - | - | - | - | - | 5,854 | |||||||||||||||||||||
Non-insurance related assets | - | - | 1 | 97 | - | - | 98 | |||||||||||||||||||||
Financial assets measured at FVPL | ||||||||||||||||||||||||||||
Backing direct participation insurance contracts | 67,532 | 40,008 | 173 | - | - | - | 107,714 | |||||||||||||||||||||
Backing insurance contracts without direct participation | 9,696 | 1,243 | 27 | - | - | - | 10,967 | |||||||||||||||||||||
Backing direct participation investment contracts | 24,988 | 22,771 | - | - | - | - | 47,759 | |||||||||||||||||||||
Backing investment contracts without direct participation | 386 | - | 19 | - | - | - | 405 | |||||||||||||||||||||
Non-insurance related assets | 92 | 38,339 | - | 27 | - | - | 38,458 | |||||||||||||||||||||
Financial assets measured at amortized cost | 10,156 | - | 1 | 52 | 18 | - | 10,227 | |||||||||||||||||||||
Investments in real estate | 38 | 433 | 17 | - | - | - | 488 | |||||||||||||||||||||
Total investments on balance sheet | 161,715 | 102,795 | 1,678 | 176 | 18 | - | 266,382 | |||||||||||||||||||||
Investments in joint ventures | - | - | 1,034 | 397 | - | - | 1,430 | |||||||||||||||||||||
Investments in associates | - | - | 5 | 279 | 2,622 | - | 2,906 | |||||||||||||||||||||
Other assets | 24,700 | 2,470 | 5,948 | 606 | 10,575 | (13,436 | ) | 30,863 | ||||||||||||||||||||
Consolidated total assets | 186,415 | 105,265 | 8,664 | 1,457 | 13,215 | (13,436 | ) | 301,581 |
Notes to the consolidated financial statements Note 5 | ||||
Americas | The Netherlands | United Kingdom | International | Asset Manage- ment | Holding and other activities | Eliminations | Total | |||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||
Shares | 315 | - | 15,518 | 21 | 7 | 1 | - | 15,863 | ||||||||||||||||||||||||
Debt securities | 51,008 | - | 6,455 | 1,864 | 15 | - | - | 59,341 | ||||||||||||||||||||||||
Unconsolidated investment funds | 89,535 | - | 64,776 | 431 | - | - | - | 154,741 | ||||||||||||||||||||||||
Loans | 10,406 | - | 2,354 | 14 | - | 38 | - | 12,812 | ||||||||||||||||||||||||
Other financial assets | 9,318 | - | 1,917 | 150 | 114 | - | - | 11,500 | ||||||||||||||||||||||||
Investments in real estate | 42 | - | 443 | 17 | - | - | - | 502 | ||||||||||||||||||||||||
Total investments on balance sheet | 160,624 | - | 91,463 | 2,497 | 136 | 39 | - | 254,759 | ||||||||||||||||||||||||
Off-balance sheet investments third parties | 216,060 | - | 122,742 | 3,384 | 141,067 | - | - | 483,253 | ||||||||||||||||||||||||
Total revenue-generating investments | 376,684 | - | 214,205 | 5,881 | 141,203 | 39 | - | 738,013 | ||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
Financial assets measured at FVOCI | ||||||||||||||||||||||||||||||||
Backing insurance contracts without direct participation | 46,665 | - | - | 1,900 | - | - | - | 48,565 | ||||||||||||||||||||||||
Backing investment contracts without direct participation | 5,482 | - | - | - | - | - | - | 5,482 | ||||||||||||||||||||||||
Non-insurance related assets | - | - | - | 81 | 96 | - | - | 177 | ||||||||||||||||||||||||
Financial assets measured at FVPL | ||||||||||||||||||||||||||||||||
Backing direct participation insurance contracts | 66,344 | - | 36,843 | 140 | - | - | - | 103,327 | ||||||||||||||||||||||||
Backing insurance contracts without direct participation | 8,164 | - | 1,083 | 305 | - | - | - | 9,552 | ||||||||||||||||||||||||
Backing direct participation investment contracts | 23,191 | - | 22,262 | - | - | - | - | 45,453 | ||||||||||||||||||||||||
Backing investment contracts without direct participation | 285 | - | - | 47 | - | - | - | 331 | ||||||||||||||||||||||||
Non-insurance related assets | 46 | - | 30,832 | - | 40 | 1 | - | 30,918 | ||||||||||||||||||||||||
Financial assets measured at amortized cost | 10,406 | - | - | 9 | - | 38 | - | 10,453 | ||||||||||||||||||||||||
Investments in real estate | 42 | - | 443 | 17 | - | - | - | 502 | ||||||||||||||||||||||||
Total investments on balance sheet | 160,624 | - | 91,463 | 2,497 | 136 | 39 | - | 254,759 | ||||||||||||||||||||||||
Investments in joint ventures | - | - | - | 959 | 471 | - | - | 1,430 | ||||||||||||||||||||||||
Investments in associates | - | 11 | - | 20 | 129 | 16 | (11 | ) | 165 | |||||||||||||||||||||||
Other assets | 27,399 | 89,740 | 2,544 | 6,726 | 513 | 18,094 | (20,658 | ) | 124,357 | |||||||||||||||||||||||
Consolidated total assets | 188,023 | 89,751 | 94,007 | 10,201 | 1,249 | 18,148 | (20,669 | ) | 380,711 |
Summarized assets and liabilities per segment | Americas | United Kingdom | | International | Eliminations | Total | ||||||||||||||
2023 | ||||||||||||||||||||
Insurance contracts | ||||||||||||||||||||
Direct participating contracts | 70,436 | 39,687 | 193 | - | 110,315 | |||||||||||||||
Without direct participation contracts | 65,499 | 642 | 6,393 | (5,626 | ) | 66,907 | ||||||||||||||
Contracts measured under the PAA | - | - | 39 | - | 39 | |||||||||||||||
Investment contracts with DPF | ||||||||||||||||||||
Direct participating contracts | - | 21,594 | - | - | 21,594 | |||||||||||||||
Insurance contracts and investment contracts without participation features | 135,934 | 61,922 | 6,625 | (5,626 | ) | 198,855 | ||||||||||||||
Reinsurance contracts held | 16,166 | 2 | 5,445 | (5,613 | ) | 16,000 |
Investments | Americas | The Netherlands | United Kingdom | International 1) | Asset Management | Holding and other activities | Eliminations | Total | ||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
Shares | 442 | 1,376 | 34 | 74 | 9 | 44 | 0 | 1,979 | ||||||||||||||||||||||||
Debt securities | 59,419 | 30,880 | 1,077 | 7,926 | 48 | 1 | 0 | 99,350 | ||||||||||||||||||||||||
Loans | 10,477 | 33,882 | 0 | 120 | 0 | 40 | 0 | 44,519 | ||||||||||||||||||||||||
Other financial assets | 7,056 | 91 | 883 | 102 | 152 | 23 | 0 | 8,308 | ||||||||||||||||||||||||
Investments in real estate | 37 | 2,331 | 0 | 16 | 0 | 0 | 0 | 2,385 | ||||||||||||||||||||||||
Investments general account | 77,431 | 68,561 | 1,994 | 8,238 | 208 | 108 | 0 | 156,541 | ||||||||||||||||||||||||
Shares | 0 | 8,227 | 16,877 | 187 | 0 | 0 | (3 | ) | 25,288 | |||||||||||||||||||||||
Debt securities | 0 | 12,150 | 7,579 | 156 | 0 | 0 | 0 | 19,885 | ||||||||||||||||||||||||
Unconsolidated investment funds | 104,374 | 706 | 63,084 | 613 | 0 | 0 | 0 | 168,777 | ||||||||||||||||||||||||
Other financial assets | 0 | 4,520 | 5,232 | 3 | 0 | 0 | 0 | 9,755 | ||||||||||||||||||||||||
Investments in real estate | 0 | 0 | 467 | - | 0 | 0 | 0 | 467 | ||||||||||||||||||||||||
Investments for account of policyholders | 104,374 | 25,603 | 93,240 | 959 | 0 | 0 | (3 | ) | 224,172 | |||||||||||||||||||||||
Investments on balance sheet | 181,805 | 94,164 | 95,234 | 9,197 | 208 | 108 | (3 | ) | 380,713 | |||||||||||||||||||||||
Off-balance sheet investments third parties | 215,216 | 6,144 | 119,347 | 6,752 | 192,098 | 0 | (336 | ) | 539,220 | |||||||||||||||||||||||
Total revenue-generating investments | 397,021 | 100,308 | 214,580 | 15,948 | 192,307 | 108 | (339 | ) | 919,933 | |||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
Available-for-sale | 63,864 | 25,972 | 1,494 | 8,088 | 134 | 28 | 0 | �� | 99,580 | |||||||||||||||||||||||
Loans | 10,477 | 33,882 | 0 | 120 | 0 | 40 | 0 | 44,519 | ||||||||||||||||||||||||
Financial assets at fair value through profit or loss | 107,427 | 31,979 | 93,272 | 973 | 74 | 40 | (3 | ) | 233,762 | |||||||||||||||||||||||
Investments in real estate | 37 | 2,331 | 467 | 16 | 0 | 0 | 0 | 2,853 | ||||||||||||||||||||||||
Total investments on balance sheet | 181,805 | 94,164 | 95,234 | 9,197 | 208 | 108 | (3 | ) | 380,713 | |||||||||||||||||||||||
Investments in joint ventures | (0 | ) | 327 | 0 | 846 | 204 | (0 | ) | 0 | 1,376 | ||||||||||||||||||||||
Investments in associates | 60 | 1,004 | 8 | 35 | 151 | 21 | (15 | ) | 1,264 | |||||||||||||||||||||||
Other assets | 35,010 | 19,467 | 3,740 | 2,405 | 545 | 34,190 | (34,896 | ) | 60,461 | |||||||||||||||||||||||
Consolidated total assets | 216,875 | 114,962 | 98,982 | 12,482 | 1,109 | 34,319 | (34,914 | ) | 443,814 |
Annual Report on Form 20-F 2023 | 215 |
2021 | 2020 | 2019 | ||||||||||
Life insurance | 13,400 | 13,929 | 15,926 | |||||||||
Non-life insurance | 2,044 | 2,171 | 2,212 | |||||||||
Total premium income | 15,444 | 16,099 | 18,138 | |||||||||
Accident and health insurance | 1,643 | 1,784 | 1,823 | |||||||||
General insurance | 401 | 386 | 390 | |||||||||
Non-life insurance premium income | 2,044 | 2,171 | 2,212 |
![]() | About Aegon Governance and risk management Financial information | |||
2021 | 2020 | 2019 | ||||||||||
Life insurance | 3,326 | 2,541 | 2,276 | |||||||||
Non-life insurance | 192 | 162 | 158 | |||||||||
Total premiums paid to reinsurers | 3,518 | 2,703 | 2,434 | |||||||||
Accident and health insurance | 164 | 137 | 138 | |||||||||
General insurance | 27 | 25 | 19 | |||||||||
Non-life insurance premiums paid to reinsurers | 192 | 162 | 158 |
Summarized assets and liabilities per segment | Americas | United Kingdom | | International | Eliminations | Total | ||||||||||||||
2022 | ||||||||||||||||||||
Insurance contracts | ||||||||||||||||||||
Direct participating contracts | 69,163 | 36,694 | 187 | - | 106,044 | |||||||||||||||
Without direct participation contracts | 67,996 | 927 | 6,944 | (6,266 | ) | 69,600 | ||||||||||||||
Contracts measured under the PAA | - | - | 439 | - | 439 | |||||||||||||||
Investment contracts with DPF | ||||||||||||||||||||
Direct participating contracts | - | 21,055 | - | - | 21,055 | |||||||||||||||
Insurance contracts and investment contracts without participation features | 137,159 | 58,676 | 7,570 | (6,266 | ) | 197,139 | ||||||||||||||
Reinsurance contracts held | 16,458 | 369 | 6,065 | (6,223 | ) | 16,669 |
2023 | 2022 | |||||||||||||||
Amounts related to changes in liability for remaining coverage | Insurance contracts | | | Investment contracts with DPF | | Insurance contracts | | | Investment contracts with DPF | | ||||||
Expected insurance claims and expenses | 8,383 | 32 | 9,092 | 49 | ||||||||||||
Earnings released from contractual service margin | 952 | 17 | 1,029 | 11 | ||||||||||||
Release of risk adjustment for non-financial risk | 340 | 15 | 320 | 14 | ||||||||||||
Allocated portion of consideration that relates to recovery acquisition costs | 558 | - | 545 | - | ||||||||||||
Other | (39 | ) | - | (42 | ) | - | ||||||||||
Contracts not measured under the PAA | 10,195 | 64 | 10,944 | 74 | ||||||||||||
Contracts measured under the PAA | 127 | - | 233 | - | ||||||||||||
Total Insurance revenue | 10,322 | 64 | 11,178 | 74 |
Revenue recognized on contracts in-force on the transition date to IFRS 17 | 2023 | 2022 | ||||||
Insurance contracts | ||||||||
Related to contracts transitioned under the modified retrospective method | 514 | 559 | ||||||
Related to contracts transitioned under the fair value approach | 8,707 | 9,513 | ||||||
Other contracts | 1,101 | 1,105 | ||||||
Total revenue reported in the period | 10,322 | 11,178 | ||||||
Investment contracts with discretionary participating features | ||||||||
Related to contracts transitioned under the fair value approach | 64 | 74 | ||||||
Total revenue reported in the period | 64 | 74 |
2023 | 2022 | |||||||||||||||
Insurance contracts | | | Investment contracts with DPF | | Insurance contracts | | | Investment contracts with DPF | | |||||||
Incurred claims and other incurred insurance service expenses | (8,404 | ) | (36 | ) | (9,030 | ) | (54 | ) | ||||||||
Changes in fulfilment cash flows relating to incurred claims | (17 | ) | - | 8 | - | |||||||||||
Onerous contract losses (and reversals) | (1,079 | ) | - | (1,247 | ) | - | ||||||||||
Amortization of insurance acquisition costs | (558 | ) | - | (545 | ) | - | ||||||||||
Contracts not measured under the PAA | (10,058 | ) | (36 | ) | (10,815 | ) | (54 | ) | ||||||||
Contracts measured under the PAA | (132 | ) | - | (228 | ) | - | ||||||||||
Total insurance service expenses | (10,190 | ) | (36 | ) | (11,043 | ) | (54 | ) |
Notes to the consolidated financial statements Note 8 | ||||
2023 | 2022 | |||||||
Assumption changes that relate to (a reversal of) underlying onerous contracts | 31 | 38 | ||||||
Experience adjustments that relate to (a reversal of) underlying onerous contracts | 516 | 562 | ||||||
Release of the contractual service margin for services received | (26 | ) | 63 | |||||
Release of risk adjustment for non-financial risk | (118 | ) | (134 | ) | ||||
Experience adjustments on current service | (217 | ) | (280 | ) | ||||
Changes in fulfilment cash flows relating to incurred claims | (2 | ) | (12 | ) | ||||
Loss on retrospective reinsurance (reinsurance purchased relating to incurred claims) | (17 | ) | - | |||||
New contracts issued/acquired: loss on initial recognition of underlying contracts | 12 | 31 | ||||||
Establishing of loss recovery component from onerous underlying contracts | 7 | 8 | ||||||
Reversals of a loss-recovery component other than changes in the FCF of reinsurance contracts held | (3 | ) | (2 | ) | ||||
Contracts not measured under the PAA | 181 | 274 | ||||||
Contracts measured under the PAA | 1 | 1 | ||||||
Net income / (expenses) on reinsurance held | 182 | 275 |
Annual Report on Form 20-F 2023 | 217 |
![]() | About Aegon Governance and risk management Financial information | |||
Insurance contracts | Investment contracts with DPF | 2023 | ||||||||||||||||||
Note | Direct Part | Without direct part. | | Direct Part | Total | |||||||||||||||
Insurance investment return | ||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method | 9.1 | - | 2,738 | - | 2,738 | |||||||||||||||
Interest revenue on financial instruments measured at FVPL | 9.2 | 231 | 369 | 137 | 737 | |||||||||||||||
Other investment income | 9.3 | 845 | 11 | 427 | 1,283 | |||||||||||||||
Results from financial transactions | 9.4 | 11,446 | (467 | ) | 1,322 | 12,302 | ||||||||||||||
Impairment (losses) / reversals | 9.5 | - | (86 | ) | - | (86 | ) | |||||||||||||
Interest expenses | - | (218) | - | (218) | ||||||||||||||||
P&L impacts | 12,523 | 2,347 | 1,886 | 16,756 | ||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | - | 1,311 | - | 1,311 | ||||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | - | 577 | - | 577 | ||||||||||||||||
OCI impacts | - | 1,888 | - | 1,888 | ||||||||||||||||
Total insurance investment return | 12,523 | 4,235 | 1,886 | 18,644 | ||||||||||||||||
Insurance finance income / (expenses) – General model | ||||||||||||||||||||
Interest accreted to insurance contracts | - | (3,098 | ) | - | (3,098 | ) | ||||||||||||||
Changes in interest rates and other financial assumptions | - | (1,587 | ) | - | (1,587 | ) | ||||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates , | - | (421 | ) | - | (421 | ) | ||||||||||||||
Insurance finance income / (expenses) – Variable fee approach | ||||||||||||||||||||
Change in fair value of underlying assets of products with direct participating features | (13,730 | ) | - | (1,921 | ) | (15,651 | ) | |||||||||||||
Change in fulfilment value not recognized in CSM due to risk mitigation option | 1,493 | - | - | 1,493 | ||||||||||||||||
Insurance finance income / (expenses) – Premium allocation approach | ||||||||||||||||||||
Insurance finance expenses from PAA contracts | - | (12 | ) | - | (12 | ) | ||||||||||||||
Total insurance finance income / (expenses) | (12,237 | ) | (5,118 | ) | (1,921 | ) | (19,276 | ) | ||||||||||||
Represented by: | ||||||||||||||||||||
Amounts recognized in profit or loss | (12,244 | ) | (3,485 | ) | (1,921 | ) | (17,650 | ) | ||||||||||||
Amounts recognized in OCI | 7 | (1,633 | ) | - | (1,626 | ) | ||||||||||||||
Reinsurance finance income / (expenses) on reinsurance held | ||||||||||||||||||||
Interest accreted to reinsurance contracts | - | 630 | - | 630 | ||||||||||||||||
Changes in interest rates and other financial assumptions | - | 283 | - | 283 | ||||||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | - | 148 | - | 148 | ||||||||||||||||
Changes in risk of non-performance of reinsurers | - | (12 | ) | - | (12 | ) | ||||||||||||||
Reinsurance finance income / (expenses) on reinsurance held | - | 1,048 | - | 1,048 | ||||||||||||||||
Represented by: | ||||||||||||||||||||
Amounts recognized in profit or loss | - | 699 | - | 699 | ||||||||||||||||
Amounts recognized in OCI | - | 349 | - | 349 | ||||||||||||||||
Insurance net investment result | 285 | 165 | (34 | ) | 415 | |||||||||||||||
Represented by: | ||||||||||||||||||||
Amounts recognized in profit or loss | 278 | (440 | ) | (34 | ) | (196 | ) | |||||||||||||
Amounts recognized in OCI | 7 | 604 | - | 611 |
Notes to the consolidated financial statements Note 9 | ||||
Insurance contracts | Investment contracts with DPF | 2022 | ||||||||||||||||||
Note | Direct Part | Without direct part. | | Direct Part | Total | |||||||||||||||
Insurance investment return | ||||||||||||||||||||
Interest revenue on financial instruments calculated using the effective interest method | 9.1 | - | 2,898 | - | 2,898 | |||||||||||||||
Interest revenue on financial instruments measured at FVPL | 9.2 | 182 | 265 | 128 | 575 | |||||||||||||||
Other investment income | 9.3 | 701 | 31 | 421 | 1,153 | |||||||||||||||
Results from financial transactions | 9.4 | (24,716 | ) | (909 | ) | (3,880 | ) | (29,505 | ) | |||||||||||
Impairment (losses) / reversals | 9.5 | - | (95 | ) | - | (95 | ) | |||||||||||||
Interest expenses | - | (97 | ) | - | (97 | ) | ||||||||||||||
P&L impacts | (23,833 | ) | 2,092 | (3,331 | ) | (25,072 | ) | |||||||||||||
Gains / (losses) on investments in equity instruments designated at FVOCI | - | 2 | - | 2 | ||||||||||||||||
Gains / (losses) on financial assets measured at FVOCI | - | (14,571 | ) | - | (14,571 | ) | ||||||||||||||
Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | - | 488 | - | 488 | ||||||||||||||||
OCI impacts | - | (14,081 | ) | - | (14,081 | ) | ||||||||||||||
Total insurance investment return | (23,833 | ) | (11,989 | ) | (3,331 | ) | (39,153 | ) | ||||||||||||
Insurance finance income / (expenses) – General model | ||||||||||||||||||||
Interest accreted to insurance contracts | - | (3,045 | ) | - | (3,045 | ) | ||||||||||||||
Changes in interest rates and other financial assumptions | - | 18,495 | - | 18,495 | ||||||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates , | - | 786 | - | 786 | ||||||||||||||||
Insurance finance income / (expenses) – Variable fee approach | ||||||||||||||||||||
Change in fair value of underlying assets of products with direct participating features | 20,886 | - | 3,247 | 24,133 | ||||||||||||||||
Change in fulfilment value not recognized in CSM due to risk mitigation option | 3,323 | - | - | 3,323 | ||||||||||||||||
Insurance finance income / (expenses) – Premium allocation approach | ||||||||||||||||||||
Insurance finance expenses from PAA contracts | - | (7 | ) | - | (7 | ) | ||||||||||||||
Total insurance finance income / (expenses) | 24,208 | 16,230 | 3,247 | 43,685 | ||||||||||||||||
Represented by: | ||||||||||||||||||||
Amounts recognized in profit or loss | 24,233 | (2,475 | ) | 3,247 | 25,005 | |||||||||||||||
Amounts recognized in OCI | (25 | ) | 18,705 | - | 18,680 | |||||||||||||||
Reinsurance finance income / (expenses) on reinsurance held | ||||||||||||||||||||
Interest accreted to reinsurance contracts | - | 660 | - | 660 | ||||||||||||||||
Changes in interest rates and other financial assumptions | - | (4,469 | ) | - | (4,469 | ) | ||||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | - | (267 | ) | - | (267 | ) | ||||||||||||||
Changes in risk of non-performance of reinsurers | - | 3 | - | 3 | ||||||||||||||||
Reinsurance finance income / (expenses) on reinsurance held | - | (4,073 | ) | - | (4,073 | ) | ||||||||||||||
Represented by: | ||||||||||||||||||||
Amounts recognized in profit or loss | - | 599 | - | 599 | ||||||||||||||||
Amounts recognized in OCI | - | (4,672 | ) | - | (4,672 | ) | ||||||||||||||
Insurance net investment result | 375 | 168 | (84 | ) | 458 | |||||||||||||||
Represented by: | ||||||||||||||||||||
Amounts recognized in profit or loss | 400 | 217 | (84 | ) | 532 | |||||||||||||||
Amounts recognized in OCI | (25 | ) | (49 | ) | - | (74 | ) |
Annual Report on Form 20-F 2023 | 219 |
2021 | 2020 | 2019 | ||||||||||
Interest income | 5,340 | 5,426 | 5,835 | |||||||||
Dividend income | 1,528 | 1,609 | 1,571 | |||||||||
Rental income | 99 | 114 | 125 | |||||||||
Total investment income | 6,967 | 7,149 | 7,531 | |||||||||
Interest income accrued on impaired financial assets | 53 | 70 | 146 | |||||||||
Interest income on financial assets that are not carried at Fair value through profit or loss | 4,533 | 4,688 | 4,943 |
![]() | About Aegon Governance and risk management Financial information | |||
Total investment income from: | 2021 | 2020 | 2019 | |||||||||
Shares | 1,528 | 1,609 | 1,571 | |||||||||
Debt securities and money market instruments | 3,548 | 3,663 | 3,959 | |||||||||
Loans | 1,649 | 1,710 | 1,779 | |||||||||
Real estate | 99 | 114 | 125 | |||||||||
Other | 142 | 53 | 97 | |||||||||
Total | 6,967 | 7,149 | 7,531 |
Investment income is split into: | 2021 | 2020 | 2019 | |||||||||
Investment income related to general account | 4,952 | 5,005 | 5,291 | |||||||||
Investment income for account of policyholders | 2,015 | 2,145 | 2,240 | |||||||||
Total | 6,967 | 7,149 | 7,531 | |||||||||
Investment income from financial assets held for general account: | ||||||||||||
Available-for-sale | 3,009 | 3,075 | 3,267 | |||||||||
Loans | 1,649 | 1,710 | 1,779 | |||||||||
Financial assets designated at fair value through profit or loss | 247 | 130 | 125 | |||||||||
Real estate | 68 | 87 | 83 | |||||||||
Derivatives | (6 | ) | (7 | ) | 39 | |||||||
Other | (15 | ) | 9 | (2 | ) | |||||||
Total | 4,952 | 5,005 | 5,291 |
2021 | 2020 | 2019 | ||||||||||
Fee income from asset management | 1,904 | 1,725 | 1,824 | |||||||||
Commission income | 713 | 580 | 585 | |||||||||
Other | 168 | 99 | 114 | |||||||||
Total fee and commission income | 2,785 | 2,405 | 2,523 | |||||||||
Included in fee and commission income: | ||||||||||||
Fees on trust and fiduciary activities | 259 | 221 | 225 |
2023 | ||||||||
Without direct part. | | Total | ||||||
Debt securities and money market instruments | 2,166 | 2,166 | ||||||
Loans | 433 | 433 | ||||||
Other | 139 | 139 | ||||||
At December 31 | 2,738 | 2,738 |
2022 | ||||||||
Without direct part. | | Total | ||||||
Debt securities and money market instruments | 2,479 | 2,479 | ||||||
Loans | 425 | 425 | ||||||
Other | (6 | ) | (6 | ) | ||||
At December 31 | 2,898 | 2,898 |
2021 | 2020 | 2019 | ||||||||||
Recovered claims and benefits | 3,363 | 3,250 | 3,367 | |||||||||
Change in technical provisions | 761 | 310 | 1 | |||||||||
Commissions | 163 | 406 | 218 | |||||||||
Amortization Charges | 2 | 0 | 0 | |||||||||
Total | 4,289 | 3,965 | 3,586 |
Insurance contracts | Investment contracts with DPF | 2023 | ||||||||||||||
Direct Part | Without direct part. | Direct Part | Total | |||||||||||||
Non-derivative assets applying the fair value option | 231 | 54 | 137 | 422 | ||||||||||||
Non-derivative assets failing the SPPI criteria | - | 315 | - | 315 | ||||||||||||
On December 31 | 231 | 369 | 137 | 737 |
Insurance contracts | Investment contracts with DPF | 2022 | ||||||||||||||
Direct Part | Without direct part. | Direct Part | Total | |||||||||||||
Non-derivative assets applying the fair value option | 188 | 48 | 128 | 364 | ||||||||||||
Non-derivative assets failing the SPPI criteria | - | 217 | - | 217 | ||||||||||||
Non-derivative assets – PH designated | (5 | ) | - | - | (5 | ) | ||||||||||
On December 31 | 182 | 265 | 128 | 575 |
Insurance contracts | Investment contracts with DPF | 2023 | ||||||||||||||
Direct Part | Without direct part. | Direct Part | Total | |||||||||||||
Dividend income | 828 | 12 | 417 | 1,257 | ||||||||||||
Rental income | 17 | (2 | ) | 11 | 26 | |||||||||||
On December 31 | 845 | 11 | 427 | 1,283 |
Insurance contracts | Investment contracts with DPF | 2022 | ||||||||||||||
Direct Part | Without direct part. | Direct Part | Total | |||||||||||||
Dividend income | 680 | 28 | 407 | 1,115 | ||||||||||||
Rental income | 20 | 4 | 14 | 38 | ||||||||||||
On December 31 | 701 | 31 | 421 | 1,153 |
Notes to the consolidated financial statements Note 9 | ||||
Insurance contracts | Investment contracts with DPF | 2023 | ||||||||||||||
Direct Part | Without direct part. | | Direct Part | Total | ||||||||||||
Net fair value change of financial investments at fair value through profit or loss, other than derivatives | ||||||||||||||||
Shares | 800 | 13 | 413 | 1,225 | ||||||||||||
Debt securities and money market investments | 55 | 1,366 | 36 | 1,457 | ||||||||||||
Unconsolidated investment funds | 11,800 | 11 | 939 | 12,750 | ||||||||||||
Other | - | 15 | - | 15 | ||||||||||||
12,655 | 1,404 | 1,388 | 15,447 | |||||||||||||
Net fair value change of derivatives | ||||||||||||||||
Economic hedges where no hedge accounting is applied | (95 | ) | 29 | (48 | ) | (114 | ) | |||||||||
Bifurcated embedded derivatives | - | (1 | ) | - | (1 | ) | ||||||||||
Change in fair value of hedges on guarantees in products with direct participating features | (1,085 | ) | - | - | (1,085 | ) | ||||||||||
Ineffective portion of hedge transactions to which hedge accounting is applied | - | 3 | - | 3 | ||||||||||||
(1,181 | ) | 31 | (48 | ) | (1,197 | ) | ||||||||||
Realized gains and (losses) on financial investments | ||||||||||||||||
Debt securities and money market investments | - | (15 | ) | - | (15 | ) | ||||||||||
- | (16 | ) | - | (16 | ) | |||||||||||
Realized gains and (losses) on financial investments comprised of: | ||||||||||||||||
Investments measured at fair value through other comprehensive income (“FVOCI”) | - | (15 | ) | - | (15 | ) | ||||||||||
Other | ||||||||||||||||
Gains and (losses) on investments in real estate | (28 | ) | - | (18 | ) | (46 | ) | |||||||||
Net fair value change on investments in real estate | - | 2 | - | 2 | ||||||||||||
(28 | ) | 2 | (18 | ) | (44 | ) | ||||||||||
On December 31 | 11,446 | 1,421 | 1,322 | 14,190 | ||||||||||||
Represented by: | ||||||||||||||||
Assets designated at FVPL | 12,627 | (562 | ) | 1,370 | 13,435 | |||||||||||
Assets mandatorily measured at FVPL | (1,181 | ) | 95 | (48 | ) | (1,134 | ) | |||||||||
Other (i.e. FVOCI) | - | 1,888 | - | 1,888 |
Annual Report on Form 20-F 2023 | 221 |
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Insurance contracts | Investment contracts with DPF | 2022 | ||||||||||||||
Direct Part | Without direct part. | | Direct Part | Total | ||||||||||||
Net fair value change of financial investments at fair value through profit or loss, other than derivatives | ||||||||||||||||
Shares | (1,566 | ) | (33 | ) | (950 | ) | (2,548 | ) | ||||||||
Debt securities and money market investments | (1,153 | ) | (14,958 | ) | (737 | ) | (16,847 | ) | ||||||||
Unconsolidated investment funds | (18,538 | ) | (38 | ) | (1,785 | ) | (20,360 | ) | ||||||||
Other | - | 329 | - | 329 | ||||||||||||
(21,256 | ) | (14,699 | ) | (3,471 | ) | (39,427 | ) | |||||||||
Net fair value change of derivatives | ||||||||||||||||
Economic hedges where no hedge accounting is applied | (333 | ) | (361 | ) | (385 | ) | (1,080 | ) | ||||||||
Bifurcated embedded derivatives | - | (1 | ) | - | (1 | ) | ||||||||||
Change in fair value of hedges on guarantees in products with direct participating features | (3,093 | ) | - | - | (3,093 | ) | ||||||||||
Ineffective portion of hedge transactions to which hedge accounting is applied | - | (3 | ) | - | (3 | ) | ||||||||||
(3,427 | ) | (364 | ) | (385 | ) | (4,176 | ) | |||||||||
Realized gains and (losses) on financial investments | ||||||||||||||||
Loans | - | 36 | - | 36 | ||||||||||||
- | 35 | - | 35 | |||||||||||||
Realized gains and (losses) on financial investments comprised of: | ||||||||||||||||
Investments measured at amortized cost | - | 36 | - | 36 | ||||||||||||
Other | ||||||||||||||||
Gains and (losses) on investments in real estate | (33 | ) | - | (23 | ) | (56 | ) | |||||||||
Net fair value change on investments in real estate | - | 1 | - | 1 | ||||||||||||
Net foreign currency gains and (losses) | - | 37 | - | 37 | ||||||||||||
(33 | ) | 38 | (23 | ) | (18 | ) | ||||||||||
On December 31 | (24,716 | ) | (14,990 | ) | (3,880 | ) | (43,586 | ) | ||||||||
Represented by: | ||||||||||||||||
Assets designated at FVPL | (21,289 | ) | (714 | ) | (3,495 | ) | (25,498 | ) | ||||||||
Assets mandatorily measured at FVPL | (3,427 | ) | (194 | ) | (385 | ) | (4,006 | ) | ||||||||
Other (i.e. FVOCI) | - | (14,081 | ) | - | (14,081 | ) |
2023 | 2022 | |||||||
Impairment losses on financial assets, excluding receivables | ||||||||
Debt securities and money market investments | (77 | ) | (121 | ) | ||||
Loans | (15 | ) | 10 | |||||
Other | - | 6 | ||||||
Impairment reversals on financial assets, excluding receivables | ||||||||
Debt securities and money market investments | 37 | 26 | ||||||
Impairment losses and reversals on non-financial assets and receivables | (31 | ) | (17 | ) | ||||
On December 31 | (86 | ) | (95 | ) |
Notes to the consolidated financial statements Note 10 | ||||
Note | 2023 | 2022 | ||||||||
Interest revenue on financial instruments calculated using the effective interest method | 10.1 | 599 | 409 | |||||||
Interest revenue on financial instruments measured at FVPL | 10.2 | 89 | 49 | |||||||
Other investment income | 10.3 | 550 | 411 | |||||||
Results from financial transactions | 10.4 | 6,929 | (10,656 | ) | ||||||
Impairment (losses) / reversals | 10.5 | (33 | ) | (43 | ) | |||||
Investment contract income / (expenses) | (7,851 | ) | 9,808 | |||||||
Interest expenses | (45 | ) | (3 | ) | ||||||
On December 31 | 238 | (26 | ) |
2023 | 2022 | |||||||||
Debt securities and money market instruments | 457 | 405 | ||||||||
Other | 142 | 3 | ||||||||
On December 31 | 599 | 409 |
2023 | 2022 | |||||||||
Non-derivative assets applying the fair value option | 89 | 49 | ||||||||
On December 31 | 89 | 49 |
2023 | 2022 | |||||||||
Dividend income | 547 | 410 | ||||||||
Rental income | 3 | 1 | ||||||||
On December 31 | 550 | 411 |
Annual Report on Form 20-F 2023 | 223 |
![]() | About Aegon Governance and risk management Financial information | |||
Net fair value change of financial investments at fair value through profit or loss, other than derivatives | 2023 | 2022 | ||||||
Shares | 195 | (281 | ) | |||||
Debt securities and money market investments | 46 | (222 | ) | |||||
Unconsolidated investment funds | 6,805 | (9,961 | ) | |||||
7,047 | (10,463 | ) | ||||||
Net fair value change of derivatives | ||||||||
Economic hedges where no hedge accounting is applied | (8 | ) | (162 | ) | ||||
Bifurcated embedded derivatives | 5 | 29 | ||||||
Ineffective portion of hedge transactions to which hedge accounting is applied | 3 | 4 | ||||||
- | (129 | ) | ||||||
Realized gains and (losses) on financial investments | ||||||||
Debt securities and money market investments | (113 | ) | (58 | ) | ||||
(113 | ) | (58 | ) | |||||
Comprised of: | ||||||||
Investments measured at fair value through other comprehensive income (“FVOCI”) | (113 | ) | (58 | ) | ||||
Other | ||||||||
Net fair value change on investments in real estate | (6 | ) | (5 | ) | ||||
Net foreign currency gains and (losses) | 2 | (1 | ) | |||||
(4 | ) | (6 | ) | |||||
On December 31 | 6,929 | (10,656 | ) | |||||
Represented by: | ||||||||
Assets designated at FVPL | 7,043 | (10,466 | ) | |||||
Assets mandatorily measured at FVPL | 3 | 3 | ||||||
Other (i.e. FVOCI) | (117 | ) | (192 | ) |
2023 | 2022 | |||||||
Impairment losses on financial assets, excluding receivables | ||||||||
Debt securities and money market investments | (4 | ) | (13 | ) | ||||
Impairment losses and reversals on non-financial assets and receivables | (29 | ) | (30 | ) | ||||
On December 31 | (33 | ) | (43 | ) |
Note | 2023 | 2022 | ||||||||
Interest charges | 11.1 | (182 | ) | (182 | ) | |||||
Other financing income | - | 5 | ||||||||
On December 31 | (182 | ) | (178 | ) |
2023 | 2022 | |||||||
Subordinated loans | (115 | ) | (119 | ) | ||||
Trust pass-through securities | (9 | ) | (9 | ) | ||||
Borrowings | (58 | ) | (54 | ) | ||||
On December 31 | (182 | ) | (182 | ) |
Notes to the consolidated financial statements Note 12 | ||||
Results from financial transactions comprise: | 2021 | 2020 | 2019 | |||||||||
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives | 785 | 191 | 279 | |||||||||
Realized gains and (losses) on financial investments | 510 | 132 | 399 | |||||||||
Gains and (losses) on investments in real estate | 253 | 74 | 317 | |||||||||
Net fair value change of derivatives | (1,468 | ) | 128 | 1,130 | ||||||||
Net fair value change on account of policyholder financial assets at fair value through profit or loss | 23,811 | 20,982 | 33,188 | |||||||||
Net fair value change on investments in real estate for account of policyholders | 46 | (36 | ) | (18 | ) | |||||||
Net foreign currency gains and (losses) | 347 | (93 | ) | 77 | ||||||||
Net fair value change on borrowings and other financial liabilities | (13 | ) | 18 | 15 | ||||||||
Total | 24,270 | 21,397 | 35,386 |
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives comprise: | 2021 | 2020 | 2019 | |||||||||
Shares | 101 | (42 | ) | 99 | ||||||||
Debt securities and money market investments | (46 | ) | 30 | 85 | ||||||||
Other | 730 | 203 | 95 | |||||||||
Total | 785 | 191 | 279 |
Realized gains and losses on financial investments comprise: | 2021 | 2020 | 2019 | |||||||||
Shares | 17 | 3 | 11 | |||||||||
Debt securities and money market investments | 396 | 153 | 372 | |||||||||
Loans | 126 | 20 | 32 | |||||||||
Other | (30 | ) | (43 | ) | (16 | ) | ||||||
Total | 510 | 132 | 399 |
Realized gains and losses on financial investments comprise: | 2021 | 2020 | 2019 | |||||||||
Available-for-sale investments | 384 | 112 | 368 | |||||||||
Loans | 126 | 20 | 32 | |||||||||
Total | 510 | 132 | 399 |
Net fair value change of derivatives comprise: | 2021 | 2020 | 2019 | |||||||||
Net fair value change on economic hedges where no hedge accounting is applied | (3,101 | ) | 2,182 | 2,281 | ||||||||
Net fair value change on bifurcated embedded derivatives | 1,630 | (2,053 | ) | (1,153 | ) | |||||||
Ineffective portion of hedge transactions to which hedge accounting is applied | 2 | - | 1 | |||||||||
Total | (1,468 | ) | 128 | 1,130 |
The ineffective portion of hedge transactions to which hedge accounting is applied comprises: | 2021 | 2020 | 2019 | |||||||||
Fair value change on hedging instruments in a fair value hedge | (4 | ) | 10 | (1 | ) | |||||||
Fair value change on hedged items in a fair value hedge | 6 | (10 | ) | 2 | ||||||||
Ineffectiveness fair value hedge | 1 | 0 | 1 | |||||||||
Ineffectiveness cash flow hedges | 1 | - | - | |||||||||
Total | 2 | 0 | 1 |
![]() |
Net fair value change on for account of policyholder financial assets | ||||||||||||
at fair value through profit or loss comprise: | 2021 | 2020 | 2019 | |||||||||
Shares | 4,560 | 1,396 | 4,591 | |||||||||
Debt securities and money market investments | (1,007 | ) | 588 | 863 | ||||||||
Unconsolidated investment funds | 20,927 | 17,681 | 26,450 | |||||||||
Derivatives | (669 | ) | 1,318 | 1,284 | ||||||||
Total | 23,811 | 20,982 | 33,188 |
Net fair value change on borrowings and other financial liabilities | 2021 | 2020 | 2019 | |||||||||
Borrowings | 0 | 16 | 8 | |||||||||
Other financial liabilities | (13 | ) | 2 | 7 | ||||||||
Total | (13 | ) | 18 | 15 |
2021 | 2020 | 2019 | ||||||||||
Other income | 77 | 68 | 200 |
2021 | 2020 | 2019 | ||||||||||
Benefits and claims paid life | 20,019 | 16,016 | 18,824 | |||||||||
Benefits and claims paid non-life | 1,441 | 1,489 | 1,635 | |||||||||
Change in valuation of liabilities for insurance contracts | 18,138 | 22,433 | 30,679 | |||||||||
Change in valuation of liabilities for investment contracts | 2,291 | 2,086 | 5,768 | |||||||||
Other | (38 | ) | (19 | ) | (50 | ) | ||||||
Total | 41,852 | 42,006 | 56,856 |
2023 | 2022 | |||||||||||||||
Fee income from asset management | 1,967 | 2,079 | ||||||||||||||
Commission income | 21 | 23 | ||||||||||||||
Other fee and commission income | 174 | 171 | ||||||||||||||
On December 31 | 2,163 | 2,272 | ||||||||||||||
Included in fees and commission income: | ||||||||||||||||
Fees on trust and fiduciary activities | 220 | 248 |
2023 | 2022 | |||||||||||||||
Insurance related | Non-Insurance related | Insurance related | Non-Insurance related | |||||||||||||
Policyholder claims and benefits | 6,965 | - | 7,736 | - | ||||||||||||
Onerous contract losses (and reversals) | 1,081 | - | 1,250 | - | ||||||||||||
Commissions | 1,403 | 1,069 | 1,214 | 1,011 | ||||||||||||
Handling and clearing fees | - | 32 | 1 | 31 | ||||||||||||
Right of use assets - interest expense | - | 7 | - | 7 | ||||||||||||
Employee expenses | 604 | 1,107 | 637 | 1,059 | ||||||||||||
Administration expenses | 551 | 780 | 594 | 669 | ||||||||||||
Deferred transaction expenses | - | (29 | ) | - | (28 | ) | ||||||||||
Amortization of deferred expenses | - | 21 | - | 28 | ||||||||||||
Amortization of other intangibles | - | 13 | - | 9 | ||||||||||||
Total | 10,604 | 3,000 | 11,433 | 2,786 | ||||||||||||
Amounts attributed to insurance acquisition cash flows (see cash flow in note 29) | (956 | ) | - | (903 | ) | - | ||||||||||
Amortization of insurance acquisition cash flows (see note 6/7) | 558 | - | 545 | - | ||||||||||||
Amortization of insurance acquisition cash flows PAA | 19 | - | 22 | - | ||||||||||||
Total other operating expenses | 10,226 | 3,000 | 11,097 | 2,786 |
Employee expenses | 2023 | 2022 | ||||||||||||||
Salaries | 1,131 | 1,138 | ||||||||||||||
Post-employment benefit costs | 125 | 117 | ||||||||||||||
Social security charges | 107 | 101 | ||||||||||||||
Other personnel costs | 294 | 292 | ||||||||||||||
Shares | 54 | 48 | ||||||||||||||
Total | 1,711 | 1,696 | ||||||||||||||
Included in employee expenses: | ||||||||||||||||
Defined contribution expenses | 57 | 48 |
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2021 | 2020 | 2019 | ||||||||||
Surplus interest bonuses | 2 | 2 | 2 | |||||||||
Profit appropriated to policyholders | 13 | 7 | 15 | |||||||||
Total | 14 | 8 | 17 |
2021 | 2020 | 2019 | ||||||||||
Commissions | 2,562 | 2,283 | 2,423 | |||||||||
Employee expenses | 1,897 | 1,995 | 2,149 | |||||||||
Administration expenses | 1,581 | 1,593 | 1,537 | |||||||||
Deferred expenses | (1,160 | ) | (741 | ) | (832 | ) | ||||||
Amortization of deferred expenses | 933 | 767 | 755 | |||||||||
Amortization of VOBA and future servicing rights | 171 | 87 | 120 | |||||||||
Total | 5,984 | 5,983 | 6,153 | |||||||||
Included in administration expenses: | ||||||||||||
Depreciation of equipment, software and real estate held for own use | 99 | 101 | 87 |
Employee expenses | 2021 | 2020 | 2019 | |||||||||
Salaries | 1,300 | 1,316 | 1,321 | |||||||||
Post-employment benefit costs | 172 | 199 | 287 | |||||||||
Social security charges | 128 | 125 | 127 | |||||||||
Other personnel costs | 254 | 318 | 378 | |||||||||
Shares | 44 | 37 | 36 | |||||||||
Total | 1,897 | 1,995 | 2,149 | |||||||||
Included in employee expenses: | ||||||||||||
Defined contribution expenses | 35 | 36 | 43 |
Annual Report on Form 20-F 2023 | 225 |
![]() | About Aegon Governance and risk management Financial information | |||
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Number of shares per plan year | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares per plan year | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares per plan year | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares per plan year | 2019 | 2020 | 2021 | 2022 | 2023 | Total | ||||||||||||||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Total | |||||||||||||||||||||||||||||||||||||||||||
Conditionally granted 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Conditionally granted 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Conditionally granted 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Conditionally granted 1) | 6,722,418 | 6,513,984 | 7,378,113 | 8,381,086 | 9,449,451 | 38,445,052 | 7,378,113 | 8,381,086 | 9,449,451 | 7,495,307 | 7,932,942 | 40,636,899 | ||||||||||||||||||||||||||||||||||||
Allocated 2) | 7,461,564 | 6,123,546 | 6,761,360 | 6,522,324 | 0 | 26,868,794 | ||||||||||||||||||||||||||||||||||||||||||
Allocated 2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocated 2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocated 2) | 6,761,360 | 6,522,324 | 13,297,242 | 10,953,082 | 1,511,212 | 39,045,220 |
1 | The at target number of shares which were conditionally granted for the plan year. |
2 | The allocated number of shares based on the actual performance during the plan year. |
Notes to the consolidated financial statements Note 14 | ||||
2017 | 2018 | 2019 | 2020 | 2021 | Total | |||||||||||||||||||||||||||||||||||||||||||
Unvested at January 1, 2020 | 6,516,995 | 5,663,455 | 8,330,014 | - | - | 20,510,464 | ||||||||||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Total | |||||||||||||||||||||||||||||||||||||||||||
Unvested on January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unvested on January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unvested on January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unvested on January 1, 2022 | 6,796,979 | 6,997,435 | 11,825,532 | - | - | 25,619,946 | ||||||||||||||||||||||||||||||||||||||||||
Conditionally granted as variable compensation 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Conditionally granted as variable compensation 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Conditionally granted as variable compensation 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Conditionally granted as variable compensation 1) | - | - | 0 | 8,381,086 | - | 8,381,086 | - | - | - | 7,495,307 | - | 7,495,307 | ||||||||||||||||||||||||||||||||||||
Allocated 2) | 4,436 | 38,502 | (616,753 | ) | 954,850 | - | 381,035 | |||||||||||||||||||||||||||||||||||||||||
Allocated 2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocated 2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocated 2) | 3,445 | 1,832 | 3,847,791 | 2,136,074 | - | 5,989,142 | ||||||||||||||||||||||||||||||||||||||||||
Forfeited | ||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | ||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | ||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | (55,039 | ) | (199,587 | ) | (94,970 | ) | (17,644 | ) | - | (367,240 | ) | (103,121 | ) | (262,567 | ) | (1,050,197 | ) | - | - | (1,415,885 | ) | |||||||||||||||||||||||||||
Vested | (2,604,178 | ) | (250,819 | ) | (277,523 | ) | (66,526 | ) | - | (3,199,046 | ) | |||||||||||||||||||||||||||||||||||||
Unvested at December 31, 2020 | 3,862,214 | 5,251,551 | 7,340,768 | 9,251,766 | - | 25,706,299 | ||||||||||||||||||||||||||||||||||||||||||
Vested | ||||||||||||||||||||||||||||||||||||||||||||||||
Vested | ||||||||||||||||||||||||||||||||||||||||||||||||
Vested | (2,899,400 | ) | (327,134 | ) | (835,534 | ) | (183,739 | ) | - | (4,245,807 | ) | |||||||||||||||||||||||||||||||||||||
Unvested on December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unvested on December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unvested on December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unvested on December 31, 2022 | 3,797,903 | 6,409,566 | 13,787,592 | 9,447,642 | - | 33,442,703 | ||||||||||||||||||||||||||||||||||||||||||
Conditionally granted as variable compensation 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Conditionally granted as variable compensation 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Conditionally granted as variable compensation 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Conditionally granted as variable compensation 1) | - | - | - | - | 9,449,451 | 9,449,451 | - | - | - | - | 7,932,942 | 7,932,942 | ||||||||||||||||||||||||||||||||||||
Allocated 2) | 3,928 | 4,010 | (29,388 | ) | (1,858,762 | ) | 2,450,661 | 570,449 | ||||||||||||||||||||||||||||||||||||||||
Allocated 2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocated 2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocated 2) | 95,653 | 130,020 | (16,864 | ) | 1,321,701 | 1,511,212 | 3,041,722 | |||||||||||||||||||||||||||||||||||||||||
Forfeited | ||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | ||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | ||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | (92,665 | ) | (205,734 | ) | (254,543 | ) | (174,128 | ) | (4,729 | ) | (731,799 | ) | (142,634 | ) | (232,905 | ) | (437,677 | ) | (182,796 | ) | (49,968 | ) | (1,045,980 | ) | ||||||||||||||||||||||||
Vested | (3,773,477 | ) | (2,037,774 | ) | (259,858 | ) | (221,441 | ) | (69,851 | ) | (6,362,401 | ) | ||||||||||||||||||||||||||||||||||||
Unvested at December 31, 2021 | 0 | 3,012,053 | 6,796,979 | 6,997,435 | 11,825,532 | 28,631,999 | ||||||||||||||||||||||||||||||||||||||||||
Vested | ||||||||||||||||||||||||||||||||||||||||||||||||
Vested | ||||||||||||||||||||||||||||||||||||||||||||||||
Vested | (3,750,922 | ) | (2,645,290 | ) | (747,687 | ) | (663,161 | ) | (31,033 | ) | (7,838,093 | ) | ||||||||||||||||||||||||||||||||||||
Unvested on December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unvested on December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unvested on December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unvested on December 31, 2023 | - | 3,661,391 | 12,585,364 | 9,923,386 | 9,363,153 | 35,533,294 | ||||||||||||||||||||||||||||||||||||||||||
Grant price (in EUR) 3) | 5.246 | 5.405 | 4.162 | 4.083 | 3.2927 | |||||||||||||||||||||||||||||||||||||||||||
Grant price (in EUR) 3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Grant price (in EUR) 3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Grant price (in EUR) 3) | ||||||||||||||||||||||||||||||||||||||||||||||||
4.040 to | 4.143 to | 2.741 to | 1.794 to | 1.625 to | ||||||||||||||||||||||||||||||||||||||||||||
Fair value of shares at grant date (in EUR) 4) | 4.933 | 5.054 | 3.737 | 3.796 | 3.978 | |||||||||||||||||||||||||||||||||||||||||||
Fair value of shares at grant date (in EUR) 4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of shares at grant date (in EUR) 4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of shares at grant date (in EUR) 4) | 2.741 to 3.737 | | 1.794 to 3.737 | | 1.625 to 3.978 | | 3.341 to 5.061 | | 3.555 to 4.524 | |
1 | The at target number of shares which were conditionally granted as variable compensation for the plan year. |
2 | Shares that are already allocated sign-on arrangement (e.g. the |
3 | This is the volume weighted average price (VWAP) of Aegon on the Euronext Amsterdam stock exchange for the period December 15 to January 15. For instance for the |
4 | These fair values are adjusted for expected dividend (for which the participants are not eligible during the deferral period) and for the impact of relative total shareholder return as performance indicator for variable compensation (where applicable). |
Impairment charges / (reversals) comprise: | 2021 | 2020 | 2019 | |||||||||
Impairment charges on financial assets, excluding receivables | 52 | 291 | 133 | |||||||||
Impairment reversals on financial assets, excluding receivables | (98 | ) | (29 | ) | (73 | ) | ||||||
Impairment charges and reversals on non-financial assets and receivables | 60 | 128 | 109 | |||||||||
Total | 15 | 391 | 169 |
2023 | 2022 | |||||||
Other income | 35 | 341 | ||||||
Other charges | (92) | - | ||||||
On December 31 | (57) | 341 |
Impairment charges on financial assets, excluding receivables, from: | 2021 | 2020 | 2019 | |||||||||
Shares | 3 | 42 | 7 | |||||||||
Debt securities and money market instruments | 9 | 162 | 50 | |||||||||
Loans | 40 | 87 | 76 | |||||||||
Total | 52 | 291 | 133 |
Impairment reversals on financial assets, excluding receivables, from: | 2021 | 2020 | 2019 | |||||||||
Shares | (8 | ) | - | - | ||||||||
Debt securities and money market instruments | (30 | ) | (26 | ) | (67 | ) | ||||||
Loans | (55 | ) | (2 | ) | (5 | ) | ||||||
Other | (4 | ) | (1 | ) | (1 | ) | ||||||
Total | (98 | ) | (29 | ) | (73 | ) |
Annual Report on Form 20-F 2023 | 227 |
2021 | 2020 | 2019 | ||||||||||
Subordinated loans | 110 | 110 | 88 | |||||||||
Trust pass-through securities | 8 | 9 | 8 | |||||||||
Borrowings | 153 | 194 | 252 | |||||||||
Other | 65 | 191 | 164 | |||||||||
Total | 335 | 505 | 513 | |||||||||
Included in interest charges and related fees: | ||||||||||||
Interest charges accrued on financial liabilities not carried at fair value through profit or loss | 210 | 232 | 298 |
2021 | 2020 | 2019 | ||||||||||
Other charges | 104 | 150 | 1 |
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Note | 2021 | 2020 | 2019 | 2023 | 2022 | |||||||||||||||||||
Current tax | ||||||||||||||||||||||||
Current tax | ||||||||||||||||||||||||
Current tax | ||||||||||||||||||||||||
Current tax | ||||||||||||||||||||||||
Current year | ||||||||||||||||||||||||
Current year | ||||||||||||||||||||||||
Current year | ||||||||||||||||||||||||
Current year | 116 | (105 | ) | 118 | 4 | (6 | ) | |||||||||||||||||
Adjustments to prior years | (5 | ) | (205 | ) | (14 | ) | ||||||||||||||||||
Adjustments to prior years | ||||||||||||||||||||||||
Adjustments to prior years | ||||||||||||||||||||||||
Adjustments to prior years | (9 | ) | (3 | ) | ||||||||||||||||||||
111 | (310 | ) | 103 | |||||||||||||||||||||
Total current tax | ||||||||||||||||||||||||
Total current tax | ||||||||||||||||||||||||
Total current tax | ||||||||||||||||||||||||
Total current tax | (5 | ) | (9 | ) | ||||||||||||||||||||
Deferred tax | ||||||||||||||||||||||||
Deferred tax | ||||||||||||||||||||||||
Deferred tax | ||||||||||||||||||||||||
Deferred tax | 40 | |||||||||||||||||||||||
Origination / (reversal) of temporary differences | 296 | (99 | ) | 68 | ||||||||||||||||||||
Origination / (reversal) of temporary differences | ||||||||||||||||||||||||
Origination / (reversal) of temporary differences | ||||||||||||||||||||||||
Origination / (reversal) of temporary differences | (247 | ) | 43 | |||||||||||||||||||||
Changes in tax rates / bases | (32 | ) | (11 | ) | 33 | |||||||||||||||||||
Changes in tax rates / bases | ||||||||||||||||||||||||
Changes in tax rates / bases | ||||||||||||||||||||||||
Changes in tax rates / bases | 1 | 5 | ||||||||||||||||||||||
Changes in deferred tax assets as a result of recognition /write off of previously not recognized / recognized tax losses,tax credits and deductible temporary differences | (5 | ) | 12 | 4 | ||||||||||||||||||||
Changes in deferred tax assets as a result of recognition / write off of previously not recognized / recognized tax losses, tax credits and deductible temporary differences | ||||||||||||||||||||||||
Changes in deferred tax assets as a result of recognition / write off of previously not recognized / recognized tax losses, tax credits and deductible temporary differences | ||||||||||||||||||||||||
Changes in deferred tax assets as a result of recognition / write off of previously not recognized / recognized tax losses, tax credits and deductible temporary differences | ||||||||||||||||||||||||
Changes in deferred tax assets as a result of recognition / write off of previously not recognized / recognized tax losses, tax credits and deductible temporary differences | 9 | 8 | ||||||||||||||||||||||
Non-recognition of deferred tax assets | ||||||||||||||||||||||||
Non-recognition of deferred tax assets | ||||||||||||||||||||||||
Non-recognition of deferred tax assets | ||||||||||||||||||||||||
Non-recognition of deferred tax assets | 9 | 7 | 17 | 61 | 9 | |||||||||||||||||||
Adjustments to prior years | (6 | ) | 171 | (8 | ) | |||||||||||||||||||
Adjustments to prior years | ||||||||||||||||||||||||
Adjustments to prior years | ||||||||||||||||||||||||
Adjustments to prior years | (27 | ) | 16 | |||||||||||||||||||||
260 | 81 | 114 | ||||||||||||||||||||||
Total deferred tax | ||||||||||||||||||||||||
Total deferred tax | ||||||||||||||||||||||||
Total deferred tax | ||||||||||||||||||||||||
Total deferred tax | (204 | ) | 80 | |||||||||||||||||||||
Income tax for the period (income) / charge | 371 | (229 | ) | 217 | ||||||||||||||||||||
Income tax for the period (income) / charge | ||||||||||||||||||||||||
Income tax for the period (income) / charge | ||||||||||||||||||||||||
Income tax for the period (income) / charge | (209 | ) | 71 |
Reconciliation between standard and effective income tax: | 2023 | 2022 | ||||||
Result before tax | (391 | ) | 827 | |||||
Income tax calculated using weighted average applicable statutory tax rates | (94 | ) | 188 | |||||
Difference due to the effects of: | ||||||||
Non-taxable income | (39 | ) | (103 | ) | ||||
Non-tax deductible expenses | 12 | 15 | ||||||
Changes in tax rate/base | 1 | 24 | ||||||
Different tax rates on overseas earnings | 3 | 3 | ||||||
Tax credits | (34 | ) | (43 | ) | ||||
Other taxes | - | (17 | ) | |||||
Adjustments to prior years | (36 | ) | 12 | |||||
Changes in deferred tax assets as a result of recognition / write off of previously not recognized / recognized tax losses, tax credits and deductible temporary differences | 9 | 8 | ||||||
Non-recognition of deferred tax assets | 20 | 9 | ||||||
Tax effect of (profit) / losses from joint ventures and associates | (47 | ) | (19 | ) | ||||
Other | (3 | ) | (7 | ) | ||||
(115 | ) | (118 | ) | |||||
Income tax for the period (income) / charge | (209 | ) | 71 |
Reconciliation between standard and effective income tax: | 2021 | 2020 | 2019 | |||||||||
Result before tax | 2,400 | (364 | ) | 1,453 | ||||||||
Income tax calculated using weighted average applicable statutory tax rates | 508 | (99 | ) | 292 | ||||||||
Difference due to the effects of: | ||||||||||||
Non-taxable income | (69 | ) | (46 | ) | (76 | ) | ||||||
Non-tax deductible expenses | 21 | 22 | 22 | |||||||||
Changes in tax rate/base | (32 | ) | (1 | ) | 33 | |||||||
Tax credits | (48 | ) | (57 | ) | (67 | ) | ||||||
Other taxes | 38 | (2 | ) | 57 | ||||||||
Adjustments to prior years | (11 | ) | (33 | ) | (22 | ) | ||||||
Change in uncertain tax positions | (16 | ) | - | - | ||||||||
Changes in deferred tax assets as a result of recognition / write off of previously not recognized / recognized tax losses, tax credits and deductible temporary differences | (5 | ) | 12 | 4 | ||||||||
Non-recognition of deferred tax assets | 9 | 7 | 17 | |||||||||
Tax effect of (profit) / losses from joint ventures and associates | (18 | ) | (17 | ) | (11 | ) | ||||||
Other | (5 | ) | (4 | ) | (32 | ) | ||||||
(137 | ) | (130 | ) | (75 | ) | |||||||
Income tax for the period (result) / charge | 371 | (229 | ) | (217 | ) |
![]() |
Notes to the consolidated financial statements Note 16 | ||||
2021 | 2020 | 2019 | ||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Items that will not be reclassified to profit and loss: | ||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | 1 | (2 | ) | 1 | ||||||||||||||||
Remeasurements of defined benefit plans | ||||||||||||||||||||
Remeasurements of defined benefit plans | ||||||||||||||||||||
Remeasurements of defined benefit plans | ||||||||||||||||||||
Remeasurements of defined benefit plans | (102 | ) | 140 | 90 | 17 | (249 | ) | |||||||||||||
(101 | ) | 138 | 92 | |||||||||||||||||
Total items that will not be reclassified to profit and loss | ||||||||||||||||||||
Total items that will not be reclassified to profit and loss | ||||||||||||||||||||
Total items that will not be reclassified to profit and loss | ||||||||||||||||||||
Total items that will not be reclassified to profit and loss | 17 | (249 | ) | |||||||||||||||||
Items that may be reclassified subsequently to profit and loss: | ||||||||||||||||||||
Items that may be reclassified subsequently to profit and loss: | ||||||||||||||||||||
Items that may be reclassified subsequently to profit and loss: | ||||||||||||||||||||
Items that may be reclassified subsequently to profit and loss: | ||||||||||||||||||||
(Gains) / losses on revaluation of available-for-sale investments | 222 | (666 | ) | (726 | ) | |||||||||||||||
(Gains) / losses on revaluation of FVOCI investments | ||||||||||||||||||||
(Gains) / losses on revaluation of FVOCI investments | ||||||||||||||||||||
(Gains) / losses on revaluation of FVOCI investments | ||||||||||||||||||||
(Gains) / losses on revaluation of FVOCI investments | (487 | ) | 3,499 | |||||||||||||||||
(Gains) / losses transferred to the income statement on disposal and impairment of available-for-sale investments | 100 | 2 | 94 | |||||||||||||||||
Revaluation reserve - Insurance contracts | ||||||||||||||||||||
Revaluation reserve - Insurance contracts | ||||||||||||||||||||
Revaluation reserve - Insurance contracts | ||||||||||||||||||||
Revaluation reserve - Insurance contracts | 397 | (4,211 | ) | |||||||||||||||||
Revaluation reserve - Reinsurance contracts | ||||||||||||||||||||
Revaluation reserve - Reinsurance contracts | ||||||||||||||||||||
Revaluation reserve - Reinsurance contracts | ||||||||||||||||||||
Revaluation reserve - Reinsurance contracts | (126 | ) | 1,243 | |||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||
Changes in cash flow hedging reserve | ||||||||||||||||||||
Changes in cash flow hedging reserve | 47 | 54 | 3 | 42 | 42 | |||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserve | 3 | (7 | ) | (5 | ) | |||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserve | ||||||||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserve | ||||||||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserve | 3 | (12 | ) | |||||||||||||||||
372 | (616 | ) | (634 | ) | ||||||||||||||||
Total items that may be reclassified subsequently to profit and loss | ||||||||||||||||||||
Total items that may be reclassified subsequently to profit and loss | ||||||||||||||||||||
Total items that may be reclassified subsequently to profit and loss | ||||||||||||||||||||
Total items that may be reclassified subsequently to profit and loss | (171 | ) | 561 | |||||||||||||||||
Total income tax related to components of other comprehensive income | 270 | (479 | ) | (542 | ) | |||||||||||||||
Total income tax related to components of other comprehensive income | ||||||||||||||||||||
Total income tax related to components of other comprehensive income | ||||||||||||||||||||
Total income tax related to components of other comprehensive income | (154 | ) | 312 |
2021 | 2020 | 2019 | Note | 2023 | 2022 | |||||||||||||||||||||||
Income tax related to equity instruments and other | ||||||||||||||||||||||||||||
Income tax related to equity instruments and other | ||||||||||||||||||||||||||||
Income tax related to equity instruments and other | ||||||||||||||||||||||||||||
Income tax related to equity instruments and other | ||||||||||||||||||||||||||||
Income tax related to equity instruments | 31 | 13 | 18 | 51 | ||||||||||||||||||||||||
Income tax related to equity instruments | ||||||||||||||||||||||||||||
Income tax related to equity instruments | ||||||||||||||||||||||||||||
Income tax related to equity instruments | 26 | 17 | 2 | |||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||
Other | 3 | 1 | (1 | ) | 1 | 1 | ||||||||||||||||||||||
Total income tax recognized directly in retained earnings | 16 | 19 | 50 | |||||||||||||||||||||||||
Total income tax recognized directly in retained earnings | ||||||||||||||||||||||||||||
Total income tax recognized directly in retained earnings | ||||||||||||||||||||||||||||
Total income tax recognized directly in retained earnings | 18 | 3 |
2021 | 2020 | 2019 | ||||||||||
Net result attributable to owners of Aegon N.V. | 1,980 | (146 | ) | 1,235 | ||||||||
Coupons on perpetual securities | (39 | ) | (38 | ) | (88 | ) | ||||||
Net result attributable to owners for basic earnings per share calculation | 1,941 | (184 | ) | 1,148 | ||||||||
Net result attributable to common shareholders | 1,928 | (182 | ) | 1,140 | ||||||||
Net result attributable to common shareholders B | 13 | (1 | ) | 8 | ||||||||
Weighted average number of common shares outstanding (in million) | 2,043 | 2,044 | 2,042 | |||||||||
Weighted average number of common shares B outstanding (in million) | 559 | 561 | 572 | |||||||||
Basic earnings per common share (EUR per share) | 0.94 | (0.09 | ) | 0.56 | ||||||||
Basic earnings per common share B (EUR per share) | 0.02 | 0 | 0.01 |
Continuing and discontinued operations | 2023 | 2022 | ||||||
Net result attributable to owners of Aegon Ltd. from continuing and discontinued operations | (179 | ) | (570 | ) | ||||
Coupons on perpetual securities | (48 | ) | (36 | ) | ||||
Net result attributable to owners for basic earnings per share calculation from continuing and discontinued operations | (227 | ) | (606 | ) | ||||
Net result attributable to common shareholders from continuing and discontinued operations | (225 | ) | (602 | ) | ||||
Net result attributable to common shareholders B from continuing and discontinued operations | (1 | ) | (4 | ) | ||||
Weighted average number of common shares outstanding (in million) | 1,879 | 2,010 | ||||||
Weighted average number of common shares B outstanding (in million) | 490 | 536 | ||||||
Basic earnings per common share (EUR per share) from continuing and discontinued operations | (0.12 | ) | (0.30 | ) | ||||
Basic earnings per common share B (EUR per share) from continuing and discontinued operations | - | (0.01 | ) |
Annual Report on Form 20-F 2023 | 229 |
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Continuing operations | 2023 | 2022 | ||||||
Net result attributable to owners of Aegon Ltd. from continuing operations | (162 | ) | 727 | |||||
Coupons on perpetual securities | (48 | ) | (36 | ) | ||||
Net result attributable to owners for basic earnings per share calculation from continuing operations | (210 | ) | 691 | |||||
Net result attributable to common shareholders from continuing operations | (209 | ) | 686 | |||||
Net result attributable to common shareholders B from continuing operations | (1 | ) | 5 | |||||
Weighted average number of common shares outstanding (in million) | 1,879 | 2,010 | ||||||
Weighted average number of common shares B outstanding (in million) | 490 | 536 | ||||||
Basic earnings per common share (EUR per share) from continuing operations | (0.11 | ) | 0.34 | |||||
Basic earnings per common share B (EUR per share) from continuing operations | - | 0.01 |
Discontinued operations | 2023 | 2022 | ||||||
Net result attributable to owners of Aegon Ltd. from discontinued operations | (17 | ) | (1,296 | ) | ||||
Net result attributable to owners for basic earnings per share calculation from discontinued operations | (17 | ) | (1,296 | ) | ||||
Net result attributable to common shareholders from discontinued operations | (16 | ) | (1,288 | ) | ||||
Net result attributable to common shareholders B from discontinued operations | - | (9 | ) | |||||
Weighted average number of common shares outstanding (in million) | 1,879 | 2,010 | ||||||
Weighted average number of common shares B outstanding (in million) | 490 | 536 | ||||||
Basic earnings per common share (EUR per share) from discontinued operations | (0.01 | ) | (0.64 | ) | ||||
Basic earnings per common share B (EUR per share) from discontinued operations | - | (0.02 | ) |
Notes to the consolidated financial statements Note 18 | ||||
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2021 | 2020 | 2019 | 2023 | 2022 | 2021 | |||||||||||||||||||
Cash at bank and in hand | 3,638 | 4,907 | 4,619 | |||||||||||||||||||||
Cash at bank and in hand | ||||||||||||||||||||||||
Cash at bank and in hand | ||||||||||||||||||||||||
Cash at bank and in hand | 1,614 | 1,827 | 3,638 | |||||||||||||||||||||
Short-term deposits | ||||||||||||||||||||||||
Short-term deposits | ||||||||||||||||||||||||
Short-term deposits | ||||||||||||||||||||||||
Short-term deposits | 1,576 | 2,214 | 2,518 | 340 | 345 | 1,576 | ||||||||||||||||||
Money market investments | 1,675 | 1,247 | 5,116 | |||||||||||||||||||||
Money market investments | ||||||||||||||||||||||||
Money market investments | ||||||||||||||||||||||||
Money market investments | 2,120 | 1,230 | 1,675 | |||||||||||||||||||||
Short-term collateral | - | 4 | 11 | |||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||
On December 31 | 4,074 | 3,402 | 6,889 | |||||||||||||||||||||
At December 31 | 6,889 | 8,372 | 12,263 | |||||||||||||||||||||
Cash collateral related to securities lending, repurchase agreements and margins on derivatives transactions | ||||||||||||||||||||||||
Cash collateral related to securities lending, repurchase agreements and margins on derivatives transactions | ||||||||||||||||||||||||
Cash collateral related to securities lending, repurchase agreements and margins on derivatives transactions | ||||||||||||||||||||||||
Cash collateral related to securities lending, repurchase agreements and margins on derivatives transactions | 3,416 | 5,072 | 5,776 | |||||||||||||||||||||
Cash collateral received related to securities lending, repurchase agreements and margins on derivatives transactions | 5,776 | 9,208 | 7,166 | |||||||||||||||||||||
Income from security lending programs | ||||||||||||||||||||||||
Income from security lending programs | ||||||||||||||||||||||||
Income from security lending programs | ||||||||||||||||||||||||
Income from security lending programs | 3 | 9 | 6 | 7 | 7 | 3 | ||||||||||||||||||
Weighted effective interest rate on short-term deposits | (0.72%) | (0.64%) | (0.38%) | |||||||||||||||||||||
Weighted effective interest rate on short-term deposits | ||||||||||||||||||||||||
Weighted effective interest rate on short-term deposits | ||||||||||||||||||||||||
Weighted effective interest rate on short-term deposits | 3.90% | 1.70% | (0.72% | ) | ||||||||||||||||||||
Average maturity days on short-term deposits | 16 | 10 | 19 | |||||||||||||||||||||
Average maturity on short-term deposits (in days) | ||||||||||||||||||||||||
Average maturity on short-term deposits (in days) | ||||||||||||||||||||||||
Average maturity on short-term deposits (in days) | ||||||||||||||||||||||||
Average maturity on short-term deposits (in days) | 11 | 17 | 16 |
Summary cash flow statement | 2021 | 2020 | 2019 | |||||||||
Net cash flows from operating activities | (1,796) | (2,854) | 7,302 | |||||||||
Net cash flows from investing activities | (54) | (139) | (86) | |||||||||
Net cash flows from financing activities | 300 | (778) | (3,730) | |||||||||
Net increase / decrease in cash and cash equivalents | (1,550) | (3,770) | 3,486 | |||||||||
Net cash and cash equivalents are impacted by: | ||||||||||||
Positive (negative) effects of changes in exchange rates | 67 | (121) | 33 |
Note | 2023 | 2022 | 2021 | |||||||||||||
Cash and cash equivalents | 4,074 | 3,402 | 6,889 | |||||||||||||
Cash classified as Assets held for sale | - | 5,085 | - | |||||||||||||
Net cash and cash equivalents | 4,074 | 8,486 | 6,889 |
Annual Report on Form 20-F 2023 | 231 |
![]() ![]() | ||||
Summary cash flow statement | 2023 | 2022 | 2021 | |||||||||
Net cash flows from operating activities | 864 | 2,672 | (1,796 | ) | ||||||||
Net cash flows from investing activities | (1,996 | ) | 733 | (54 | ) | |||||||
Net cash flows from financing activities | (3,241 | ) | (1,834 | ) | 300 | |||||||
Net increase / (decrease) in cash and cash equivalents | (4,373 | ) | 1,570 | (1,550 | ) | |||||||
Net cash and cash equivalents on December 31, are impacted by: | ||||||||||||
Positive (negative) effects of changes in exchange rates | (38 | ) | 55 | 67 |
∎ | Changes in results from financial transactions (see note 9 Insurance net investment result and note 10 Other net investment result), partly offset by changes in financial results from insurance and investment contracts (see note 29 on (re-) insurance contracts and investment contracts with DPF and note 30 Investment contracts without DPF), and |
∎ | The net disposal of investments (see note 19 Investments). |
![]() | Notes to the consolidated financial statements Note 19 | |||
Cash flows | Non-cash changes | |||||||||||||||||||
Reconciliation of debt from financing activities | At January 1, 2021 | Addition | Repay- ment | Realized gains / losses in income statement | Movements related to fair value hedges | Amorti- zation | Transfer to/from other headings | Other | Net exchange difference | At December 31, 2021 | ||||||||||
Subordinated borrowings | 2,085 | - | - | - | - | 3 | - | - | 105 | 2,194 | ||||||||||
Trust pass-through securities | 126 | - | - | - | (9) | - | - | - | 9 | 126 | ||||||||||
Borrowings | 8,524 | 3,914 | (3,000) | - | (1) | 1 | - | - | 222 | 9,661 | ||||||||||
Assets held to hedge Trust pass-through securities | 12 | - | - | (9) | - | - | - | - | 1 | 3 | ||||||||||
Assets held to hedge Borrowings | 62 | - | (61) | (1) | - | - | - | - | - | - |
Cash flows | Non-cash changes | |||||||||||||||||||||||||||||||||||||||||
Reconciliation of debt from financing activities | January 1, 2023 | Addition | Repayment | Disposal of a business | Realized gains / losses in income statement | | Move- ments related to fair value hedges | | Amortiza- tion | Transfers to disposal groups | | Net exchange difference | | December 31, 2023 | ||||||||||||||||||||||||||||
Subordinated borrowings | 2,295 | - | - | - | - | - | 3 | - | (54 | ) | 2,244 | |||||||||||||||||||||||||||||||
Trust pass-through securities | 118 | - | - | - | - | (3 | ) | (1 | ) | - | (4 | ) | 111 | |||||||||||||||||||||||||||||
Borrowings | 4,051 | 1,604 | (3,239 | ) | (8 | ) | - | - | 2 | - | (54 | ) | 2,356 | |||||||||||||||||||||||||||||
Assets held to hedge Trust pass-through securities | (11 | ) | - | - | - | (3 | ) | - | - | - | - | (14 | ) |
Cash flows | Non-cash changes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows | Non-cash changes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of debt from financing activities | At January 1, 2020 | Addition | Repay- ment | Realized gains / losses in income statement | Movements related to fair value hedges | Amorti- zation | Transfer to/from other headings | Other | Net exchange difference | At December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of debt from financing activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of debt from financing activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of debt from financing activities | January 1, 2022 | Addition | Repayment | Disposal of a business | Realized gains / losses in income statement | | Move- ments related to fair value hedges | | Amortiza- tion | Transfers to disposal groups | | Net exchange difference | | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated borrowings | 2,207 | - | - | - | - | 3 | - | - | (125) | 2,085 | 2,194 | - | - | - | - | - | 3 | - | 98 | 2,295 | ||||||||||||||||||||||||||||||||||||||||||
Trust pass-through securities | 136 | - | - | - | 2 | - | - | - | (11) | 126 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Trust pass-through securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trust pass-through securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trust pass-through securities | 126 | - | - | - | - | (15 | ) | (1 | ) | - | 8 | 118 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | 9,307 | 3,444 | (3,985) | (16) | 1 | 1 | - | - | (228) | 8,524 | 9,661 | 3,569 | (4,086 | ) | - | - | - | 1 | (5,227 | ) | 133 | 4,051 | ||||||||||||||||||||||||||||||||||||||||
Assets held to hedge Trust pass-through securities | 11 | - | - | 2 | - | - | - | - | (1) | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets held to hedge Borrowings | - | 63 | - | (1) | - | - | - | - | - | 62 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets held to hedge Trust pass-through securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets held to hedge Trust pass-through securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets held to hedge Trust pass-through securities | 3 | - | - | - | (15 | ) | - | - | - | - | (11 | ) |
Note | 2021 | 2020 | ||||||||||
Available-for-sale (AFS) | 99,884 | 99,580 | ||||||||||
Loans | 46,823 | 44,519 | ||||||||||
Financial assets at fair value through profit or loss (FVTPL) | 8,481 | 10,057 | ||||||||||
Total financial assets, excluding derivatives | 22.1 | 155,188 | 154,156 | |||||||||
Investments in real estate | 22.2 | 2,643 | 2,385 | |||||||||
Total investments for general account | 157,831 | 156,541 |
Insurance related | 2023 | |||||||||||||||||||||||
Insurance contracts | Investment contracts with DPF | |||||||||||||||||||||||
Investments | Direct Part. | Without direct part. | Direct Part. | Without direct part. | Non-Insur- ance related | Total | ||||||||||||||||||
Financial assets measured at FVOCI – with recycling | - | 44,404 | - | 5,854 | 97 | 50,354 | ||||||||||||||||||
Financial assets measured at FVOCI – no recycling | - | 9 | - | - | 1 | 10 | ||||||||||||||||||
Financial assets measured at amortized cost | - | 7,941 | - | 2,216 | 70 | 10,227 | ||||||||||||||||||
Financial assets measured at FVPL – designated | 107,714 | 2,078 | 47,759 | 19 | 38,347 | 195,916 | ||||||||||||||||||
Financial assets measured at FVPL – mandatory | - | 8,889 | - | 386 | 111 | 9,386 | ||||||||||||||||||
Total financial assets, excluding derivatives | 107,714 | 63,321 | 47,759 | 8,474 | 38,626 | 265,894 | ||||||||||||||||||
Investments in real estate | 227 | 55 | 152 | - | 54 | 488 | ||||||||||||||||||
Total investments | 107,941 | 63,376 | 47,911 | 8,474 | 38,680 | 266,382 |
Insurance related | 2022 | |||||||||||||||||||||||
Insurance contracts | Investment contracts with DPF | |||||||||||||||||||||||
Investments | Direct Part. | Without direct part. | Direct Part. | Without direct part. | Non-Insur- ance related | Total | ||||||||||||||||||
Financial assets measured at FVOCI – with recycling | - | 48,556 | - | 5,482 | 176 | 54,214 | ||||||||||||||||||
Financial assets measured at FVOCI – no recycling | - | 9 | - | - | 1 | 10 | ||||||||||||||||||
Financial assets measured at amortized cost | - | 8,254 | - | 2,159 | 39 | 10,453 | ||||||||||||||||||
Financial assets measured at FVPL – designated | 103,327 | 1,833 | 45,453 | 47 | 30,843 | 181,503 | ||||||||||||||||||
Financial assets measured at FVPL – mandatory | - | 7,719 | - | 285 | 75 | 8,079 | ||||||||||||||||||
Total financial assets, excluding derivatives | 103,327 | 66,371 | 45,453 | 7,972 | 31,134 | 254,257 | ||||||||||||||||||
Investments in real estate | 236 | 59 | 168 | - | 40 | 502 | ||||||||||||||||||
Total investments | 103,562 | 66,430 | 45,620 | 7,972 | 31,174 | 254,759 |
Annual Report on Form 20-F 2023 | 233 |
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AFS | FVTPL | Loans | Total | Fair value | ||||||||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||
Financial assets, excluding derivatives, by measurement category | ||||||||||||||||||||||||||||||||||||||
Financial assets, excluding derivatives, by measurement category | ||||||||||||||||||||||||||||||||||||||
Financial assets, excluding derivatives, by measurement category | ||||||||||||||||||||||||||||||||||||||
Financial assets, excluding derivatives, by measurement category | FVOCI (With recycling) | | FVOCI (no recycling) | Amortized cost | FVPL (designated) | FVPL (mandatory) | Total | Fair value | ||||||||||||||||||||||||||||||
Investments where Aegon bears the risk for investment performance | ||||||||||||||||||||||||||||||||||||||
Investments where Aegon bears the risk for investment performance | ||||||||||||||||||||||||||||||||||||||
Investments where Aegon bears the risk for investment performance | ||||||||||||||||||||||||||||||||||||||
Investments where Aegon bears the risk for investment performance | ||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||
Shares | 350 | 1,665 | - | 2,015 | 2,015 | - | 10 | - | - | 291 | 300 | 300 | ||||||||||||||||||||||||||
Debt securities | 93,899 | 3,296 | - | 97,195 | 97,195 | |||||||||||||||||||||||||||||||||
Money market and other short-term investments | 4,790 | 120 | - | 4,910 | 4,910 | |||||||||||||||||||||||||||||||||
Mortgage loans | - | - | 39,991 | 39,991 | 44,366 | |||||||||||||||||||||||||||||||||
Private loans | - | - | 4,883 | 4,883 | 5,491 | |||||||||||||||||||||||||||||||||
Deposits with financial institutions | - | - | 52 | 52 | 52 | |||||||||||||||||||||||||||||||||
Policy loans | - | - | 1,893 | 1,893 | 1,893 | |||||||||||||||||||||||||||||||||
Other | 844 | 3,401 | 3 | 4,248 | 4,248 | |||||||||||||||||||||||||||||||||
At December 31, 2021 | 99,884 | 8,481 | 46,823 | 155,188 | 160,171 | |||||||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||
Shares | 345 | 1,634 | - | 1,979 | 1,979 | |||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||
Debt securities | 93,681 | 5,669 | - | 99,350 | 99,350 | 47,191 | - | 52 | 1,538 | 858 | 49,639 | 49,639 | ||||||||||||||||||||||||||
Money market and other short-term investments | 4,558 | 109 | - | 4,667 | 4,667 | |||||||||||||||||||||||||||||||||
Money market and other short-term investments | ||||||||||||||||||||||||||||||||||||||
Money market and other short-term investments | ||||||||||||||||||||||||||||||||||||||
Money market and other short-term investments | 3,135 | - | - | 215 | 3,999 | 7,349 | 7,349 | |||||||||||||||||||||||||||||||
Deposits with financial institutions | ||||||||||||||||||||||||||||||||||||||
Deposits with financial institutions | ||||||||||||||||||||||||||||||||||||||
Deposits with financial institutions | ||||||||||||||||||||||||||||||||||||||
Deposits with financial institutions | - | - | 18 | - | - | 18 | 18 | |||||||||||||||||||||||||||||||
Mortgage loans | - | - | 38,244 | 38,244 | 43,258 | |||||||||||||||||||||||||||||||||
Private loans | - | - | 4,358 | 4,358 | 5,280 | |||||||||||||||||||||||||||||||||
Deposits with financial institutions | - | - | 92 | 92 | 92 | |||||||||||||||||||||||||||||||||
Policy loans | - | - | 1,801 | 1,801 | 1,801 | |||||||||||||||||||||||||||||||||
Mortgage loans | ||||||||||||||||||||||||||||||||||||||
Mortgage loans | ||||||||||||||||||||||||||||||||||||||
Mortgage loans | - | - | 10,157 | - | - | 10,157 | 9,025 | |||||||||||||||||||||||||||||||
Other | 996 | 2,645 | 25 | 3,665 | 3,665 | |||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||
Other | 29 | - | 1 | 773 | 4,239 | 5,040 | 5,040 | |||||||||||||||||||||||||||||||
At December 31, 2020 | 99,580 | 10,057 | 44,519 | 154,156 | 160,093 | |||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||
Total | 50,354 | 10 | 10,227 | 2,526 | 9,386 | 72,504 | 71,371 |
2021 | 2020 | |||||||||
Current portion: | ||||||||||
Debt securities, money market and other short-term investments, mortgage and private loans | 12,924 | 14,671 |
2022 | ||||||||||||||||||||||||||||
Financial assets, excluding derivatives, by measurement category | FVOCI (With recycling) | | FVOCI (no recycling) | Amortized cost | FVPL (designated) | FVPL (mandatory) | Total | Fair value | ||||||||||||||||||||
Investments where Aegon bears the risk for investment performance | ||||||||||||||||||||||||||||
Shares | - | 10 | - | - | 348 | 358 | 358 | |||||||||||||||||||||
Debt securities | 51,607 | - | - | 1,241 | 799 | 53,647 | 53,647 | |||||||||||||||||||||
Money market and other short-term investments | 2,576 | - | - | 167 | 2,876 | 5,618 | 5,618 | |||||||||||||||||||||
Deposits with financial institutions | - | - | 45 | - | - | 45 | 45 | |||||||||||||||||||||
Mortgage loans | - | - | 10,406 | - | - | 10,406 | 9,218 | |||||||||||||||||||||
Other | 31 | - | 1 | 532 | 4,056 | 4,619 | 4,619 | |||||||||||||||||||||
Total | 54,214 | 10 | 10,453 | 1,940 | 8,079 | 74,694 | 73,505 |
2021 | 2020 | |||||||||
At January 1 | (188) | (165) | ||||||||
Addition charged to income statement | (40) | (87) | ||||||||
Reversal to income statement | 55 | 2 | ||||||||
Amounts written off | 55 | 62 | ||||||||
At December 31 | (118) | (188) |
2023 | 2022 | |||||||
Financial assets, excluding derivatives, by measurement category | FVPL (designated) | FVPL (designated) | ||||||
Investments where policyholders bear the risk for investment performance | ||||||||
Shares | 16,191 | 15,505 | ||||||
Debt securities | 6,172 | 5,694 | ||||||
Money market and other short-term investments | 1,346 | 1,263 | ||||||
Unconsolidated investment funds | 167,411 | 154,741 | ||||||
Deposits with financial institutions | 2,271 | 2,360 | ||||||
Total | 193,390 | 179,563 |
![]() |
2021 | 2020 | |||||||
At January 1 | 2,385 | 2,901 | ||||||
Additions | 47 | 148 | ||||||
Subsequent expenditure capitalized | 1 | 2 | ||||||
Disposals | (60) | (726) | ||||||
Transfer from real estate for own use and equipment | 14 | 0- | ||||||
Fair value gains / (losses) | 253 | 74 | ||||||
Net exchange differences | 3 | (14) | ||||||
At December 31 | 2,643 | 2,385 | ||||||
Investments in real estate held by: | ||||||||
Americas | 39 | 37 | ||||||
The Netherlands | 2,588 | 2,331 | ||||||
Value of Aegon’s properties which were appraised in the current year | 98% | 99% | ||||||
Appraisals performed by independent external appraisers | 98% | 99% |
2021 | 2020 | 2019 | ||||||||||
Rental income reported as part of investment income | 68 | 87 | 83 | |||||||||
Direct operating expenses (Including repairs and maintenance expenses): | ||||||||||||
- From investment property that generated rental income | 32 | 47 | 59 | |||||||||
- From investment property that did not generate rental income | 2 | 2 | 2 |
Note | 2021 | 2020 | ||||||||||
Shares | 29,539 | 25,288 | ||||||||||
Debt securities | 19,821 | 19,885 | ||||||||||
Money market and other short-term investments | 1,482 | 1,051 | ||||||||||
Deposits with financial institutions | 4,105 | 4,185 | ||||||||||
Unconsolidated investment funds | 191,950 | 168,777 | ||||||||||
Other | 3,493 | 4,520 | ||||||||||
Total investments for account of policyholders at fair value through profit or loss, excluding derivatives | 250,390 | 223,705 | ||||||||||
Investments in real estate | 23.1 | 563 | 467 | |||||||||
Total investments for account of policyholders | 250,953 | 224,172 |
Notes to the consolidated financial statements Note 20 | ||||
2023 | 2022 | |||||||
On January 1 | 502 | 3,206 | ||||||
Additions | 42 | 41 | ||||||
Subsequent expenditure capitalized | 2 | 12 | ||||||
Disposals | (18 | ) | (83 | ) | ||||
Fair value gains / (losses) | (50 | ) | (112 | ) | ||||
Transfers to disposal groups | - | (2,545 | ) | |||||
Transfers to other headings | - | 7 | ||||||
Net exchange differences | 9 | (24 | ) | |||||
On December 31 | 488 | 502 | ||||||
Value of Aegon’s properties, which were appraised in the current year | 99 | % | 99 | % | ||||
Appraisals performed by independent external appraisers | 95 | % | 95 | % |
Derivative assets | Derivative liabilities | |||||||||||||||||||||||||||||||||||||||
Insurance related | Insurance related | 2023 | ||||||||||||||||||||||||||||||||||||||
Insurance contracts | Invest- ment contracts with DPF | | Insurance contracts | Invest- ment contracts with DPF | | |||||||||||||||||||||||||||||||||||
Derivatives | Direct Part. | Without direct part. | | Direct Part. | Non- Insurance related | | Total | Direct Part. | Without direct part. | | Direct Part. | Non-Insur- ance related | | Total | ||||||||||||||||||||||||||
FVPL - mandatorily | ||||||||||||||||||||||||||||||||||||||||
Derivatives not designated in a hedge | 35 | 1,171 | 25 | 7 | 1,238 | 296 | 823 | 300 | 47 | 1,466 | ||||||||||||||||||||||||||||||
Derivatives designated as fair value hedges | - | 4 | - | 1 | 4 | - | 4 | - | - | 4 | ||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | - | 147 | - | - | 147 | - | 961 | - | - | 961 | ||||||||||||||||||||||||||||||
Derivatives designated as net foreign investment hedges | - | - | - | 39 | 39 | - | - | - | 48 | 48 | ||||||||||||||||||||||||||||||
Total | 35 | 1,322 | 25 | 46 | 1,429 | 296 | 1,788 | 300 | 96 | 2,479 | ||||||||||||||||||||||||||||||
Segregated by: | ||||||||||||||||||||||||||||||||||||||||
Derivatives where Aegon bears the risk for financial performance | - | 1,322 | - | 40 | 1,361 | - | 1,788 | - | 90 | 1,878 | ||||||||||||||||||||||||||||||
Derivatives where the policyholder bears the risk for financial performance | 35 | - | 25 | 7 | 67 | 296 | - | 300 | 5 | 601 |
Annual Report on Form 20-F 2023 | 235 |
2021 | 2020 | |||||||
At January 1 | 467 | 586 | ||||||
Additions | 54 | - | ||||||
Subsequent expenditure capitalized | 6 | 4 | ||||||
Disposals | (43 | ) | (56 | ) | ||||
Fair value gains / (losses) | 46 | (36 | ) | |||||
Net exchange differences | 32 | (31 | ) | |||||
At December 31 | 563 | 467 |
The investment properties are leased out under operating leases. | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Rental income reported as part of investment income | 30 | 27 | 42 | |||||||||
Direct operating expenses from investment in real estate for account of policyholders | 4 | 8 | 6 |
![]() | About Aegon Governance and risk management Financial information | |||
Derivative assets | Derivative liabilities | |||||||||||||||||||||||||||||||||||||||
Insurance related | Insurance related | 2022 | ||||||||||||||||||||||||||||||||||||||
Insurance contracts | Invest- ment contracts with DPF | | Insurance contracts | Invest- ment contracts with DPF | | |||||||||||||||||||||||||||||||||||
Derivatives | Direct Part. | Without direct part. | | Direct Part. | Non- Insurance related | | Total | Direct Part. | Without direct part. | | Direct Part. | Non-Insur- ance related | | Total | ||||||||||||||||||||||||||
FVPL - mandatorily | ||||||||||||||||||||||||||||||||||||||||
Derivatives not designated in a hedge | 29 | 2,392 | 20 | 5 | 2,445 | 344 | 3,182 | 366 | 65 | 3,958 | ||||||||||||||||||||||||||||||
Derivatives designated as fair value hedges | - | 3 | - | - | 4 | - | 4 | - | - | 4 | ||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | - | 204 | - | - | 204 | - | 1,108 | - | - | 1,108 | ||||||||||||||||||||||||||||||
Derivatives designated as net foreign investment hedges | - | - | - | 118 | 118 | - | - | - | 104 | 104 | ||||||||||||||||||||||||||||||
Total | 29 | 2,599 | 20 | 123 | 2,771 | 344 | 4,295 | 366 | 170 | 5,175 | ||||||||||||||||||||||||||||||
Segregated by: | ||||||||||||||||||||||||||||||||||||||||
Derivatives where Aegon bears the risk for financial performance | - | 2,599 | - | 119 | 2,718 | - | 4,295 | - | 165 | 4,459 | ||||||||||||||||||||||||||||||
Derivatives where the policyholder bears the risk for financial performance | 29 | - | 20 | 5 | 53 | 344 | - | 366 | 5 | 715 |
Derivative asset | Derivative liability | |||||||||||||||
�� 2021 | 2020 | 2021 | 2020 | |||||||||||||
Derivatives for general account | ||||||||||||||||
Derivatives not designated in a hedge | 8,344 | 12,617 | 9,578 | 13,661 | ||||||||||||
Derivatives designated as fair value hedges | 18 | 88 | 15 | 20 | ||||||||||||
Derivatives designated as cash flow hedges | 346 | 338 | 948 | 608 | ||||||||||||
Derivatives desginated as Net foreign investment hedges | 73 | 196 | 59 | 161 | ||||||||||||
8,780 | 13,238 | 10,600 | 14,450 | |||||||||||||
Derivatives for account of policyholders | ||||||||||||||||
Derivatives not designated in a hedge | 46 | 747 | 39 | 167 | ||||||||||||
Total derivatives 1) | 8,827 | 13,986 | 10,639 | 14,617 | ||||||||||||
Of which: | ||||||||||||||||
Current | 723 | 673 | 2,803 | 4,220 |
![]() |
Derivatives not designated in a hedge – general account | Derivative asset | Derivative liability | ||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Derivative asset | Derivative liability | |||||||||||||||||||||||||||||||
Derivatives not designated in a hedge – where Aegon bears the risk | ||||||||||||||||||||||||||||||||
Derivatives not designated in a hedge – where Aegon bears the risk | ||||||||||||||||||||||||||||||||
Derivatives not designated in a hedge – where Aegon bears the risk | ||||||||||||||||||||||||||||||||
Derivatives not designated in a hedge – where Aegon bears the risk | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||
Derivatives held as an economic hedge | ||||||||||||||||||||||||||||||||
Derivatives held as an economic hedge | ||||||||||||||||||||||||||||||||
Derivatives held as an economic hedge | ||||||||||||||||||||||||||||||||
Derivatives held as an economic hedge | 8,327 | 12,595 | 5,992 | 8,629 | 1,171 | 2,392 | 812 | 3,197 | ||||||||||||||||||||||||
Bifurcated embedded derivatives | 17 | 22 | 3,586 | 5,032 | ||||||||||||||||||||||||||||
Bifurcated embedded derivatives | ||||||||||||||||||||||||||||||||
Bifurcated embedded derivatives | ||||||||||||||||||||||||||||||||
Bifurcated embedded derivatives | - | - | 53 | 46 | ||||||||||||||||||||||||||||
Total | 8,344 | 12,617 | 9,578 | 13,661 | ||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Total | 1,171 | 2,392 | 865 | 3,242 |
Notes to the consolidated financial statements Note 20 | ||||
2021 | 2020 | 2023 | 2022 | |||||||||||||||||||||||||||||
Credit derivative disclosure by quality | Notional | Fair value | Notional | Fair value | ||||||||||||||||||||||||||||
Credit derivative disclosure by quality | ||||||||||||||||||||||||||||||||
Credit derivative disclosure by quality | ||||||||||||||||||||||||||||||||
Credit derivative disclosure by quality | Notional | Fair value | Notional | Fair value | ||||||||||||||||||||||||||||
AAA | ||||||||||||||||||||||||||||||||
AAA | ||||||||||||||||||||||||||||||||
AAA | ||||||||||||||||||||||||||||||||
AAA | 14 | 0 | 13 | 0 | 3 | - | 5 | - | ||||||||||||||||||||||||
AA | 173 | 3 | 168 | 4 | ||||||||||||||||||||||||||||
AA | ||||||||||||||||||||||||||||||||
AA | ||||||||||||||||||||||||||||||||
AA | 97 | 1 | 177 | 2 | ||||||||||||||||||||||||||||
A | ||||||||||||||||||||||||||||||||
A | ||||||||||||||||||||||||||||||||
A | ||||||||||||||||||||||||||||||||
A | 926 | 14 | 762 | 9 | 1,021 | 16 | 964 | 9 | ||||||||||||||||||||||||
BBB | 2,925 | 50 | 2,677 | 46 | ||||||||||||||||||||||||||||
BBB | ||||||||||||||||||||||||||||||||
BBB | ||||||||||||||||||||||||||||||||
BBB | 2,746 | 52 | 3,446 | 18 | ||||||||||||||||||||||||||||
BB | ||||||||||||||||||||||||||||||||
BB | ||||||||||||||||||||||||||||||||
BB | ||||||||||||||||||||||||||||||||
BB | 263 | 1 | 205 | 4 | 119 | 1 | 144 | (1 | ) | |||||||||||||||||||||||
B or lower | 148 | 2 | 121 | 0 | ||||||||||||||||||||||||||||
B or lower | ||||||||||||||||||||||||||||||||
B or lower | ||||||||||||||||||||||||||||||||
B or lower | 57 | - | 86 | - | ||||||||||||||||||||||||||||
Total | 4,449 | 70 | 3,945 | 63 | ||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Total | 4,043 | 71 | 4,820 | 28 |
∎ | single asset replications |
∎ | RSATs involving indices |
∎ | RSATs involving baskets of assets |
![]() |
2021 | 2020 | 2019 | ||||||||||
Gains (losses) related to the ineffectiveness portion of designated fair value hedges | 1 | 0 | 1 |
Annual Report on Form 20-F 2023 | 237 |
![]() | About Aegon Governance and risk management Financial information | |||
Hedge ineffectiveness and reclassification of gains (losses) | 2021 | |||||||||||||||||||
Hedge ineffectiveness and reclassification of gains (losses) | ||||||||||||||||||||
Hedge ineffectiveness and reclassification of gains (losses) | ||||||||||||||||||||
Hedge ineffectiveness and reclassification of gains (losses) | 2023 | 2022 | ||||||||||||||||||
Hedge ineffectiveness on cash flow hedges | ||||||||||||||||||||
Hedge ineffectiveness on cash flow hedges | ||||||||||||||||||||
Hedge ineffectiveness on cash flow hedges | ||||||||||||||||||||
Hedge ineffectiveness on cash flow hedges | 1 | 0 | 0 | 3 | (3 | ) | ||||||||||||||
Gains (losses) reclassified from equity into the income statement | (38 | ) | 74 | 51 | ||||||||||||||||
Gains (losses) reclassified from equity into the income statement | ||||||||||||||||||||
Gains (losses) reclassified from equity into the income statement | ||||||||||||||||||||
Gains (losses) reclassified from equity into the income statement | 20 | (102 | ) | |||||||||||||||||
Expected deferred gain (loss) to be reclassified from equity into net result during the next 12 months | 113 | 92 | 89 | |||||||||||||||||
Expected deferred gain (loss) to be reclassified from equity into net result during the next 12 months | ||||||||||||||||||||
Expected deferred gain (loss) to be reclassified from equity into net result during the next 12 months | ||||||||||||||||||||
Expected deferred gain (loss) to be reclassified from equity into net result during the next 12 months | 114 | 116 |
The periods when the cash flows are expected to occur are as follows: | ||||||||||||||||||||
< 1 year | 1 – 5 years | 5 – 10 years | > 10 years | 2021 Total | ||||||||||||||||
Cash inflows | 535 | 2,158 | 1,640 | 5,868 | 10,201 | |||||||||||||||
Cash outflows | 0 | 4 | 0 | 0 | 4 | |||||||||||||||
Net cash flows | 535 | 2,154 | 1,640 | 5,868 | 10,197 |
< 1 year | 1 – 5 years | 5 – 10 years | > 10 years | 2020 Total | ||||||||||||||||
Cash inflows | 268 | 761 | 767 | 5,402 | 7,197 | |||||||||||||||
Cash outflows | 0 | 4 | 0 | 0 | 4 | |||||||||||||||
Net cash flows | 267 | 757 | 767 | 5,402 | 7,193 |
< 1yr | 1 < 2 yrs | 2 < 3 yrs | 3 < 4 yrs | 4 < 5 yrs | > 5 yrs | Total 2023 | ||||||||||||||||||||||
Cash inflows | 282 | 253 | 260 | 286 | 341 | 7,509 | 8,930 | |||||||||||||||||||||
Cash outflows | 560 | 224 | 244 | 266 | 271 | 12,248 | 13,813 | |||||||||||||||||||||
Net cash flows | (277 | ) | 28 | 16 | 19 | 70 | (4,740 | ) | (4,883 | ) |
![]() |
< 1yr | 1 < 2 yrs | 2 < 3 yrs | 3 < 4 yrs | 4 < 5 yrs | > 5 yrs | Total 2022 | ||||||||||||||||||||||
Cash inflows | 1,552 | 1,295 | 1,060 | 964 | 933 | 10,039 | 15,843 | |||||||||||||||||||||
Cash outflows | 1,937 | 1,285 | 1,037 | 962 | 934 | 17,914 | 24,068 | |||||||||||||||||||||
Net cash flows | (385 | ) | 10 | 23 | 3 | (2 | ) | (7,875 | ) | (8,225 | ) |
Notes to the consolidated financial statements Note 20 | ||||
Joint ventures | Associates | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
At January 1 | 1,376 | 1,983 | 1,264 | 363 | ||||||||||||
Additions | 61 | 254 | 12 | 59 | ||||||||||||
Disposals | - | (105 | ) | - | (5 | ) | ||||||||||
Share in net result | 265 | 184 | 112 | 111 | ||||||||||||
Share in changes in equity (note 30.6) | 25 | 12 | (6 | ) | 7 | |||||||||||
Impairment reversals / (charges) | - | (4 | ) | 3 | (20 | ) | ||||||||||
Dividends | (88 | ) | (94 | ) | (39 | ) | (44 | ) | ||||||||
Net exchange difference | 45 | (7 | ) | 2 | (28 | ) | ||||||||||
Transfer to / (from) other headings | 58 | (836 | ) | (58 | ) | 818 | ||||||||||
Other | 0 | (11 | ) | - | 1 | |||||||||||
At December 31 | 1,743 | 1,376 | 1,289 | 1,264 |
2023 | ||||||||||||||||||||
Maturity | ||||||||||||||||||||
Up to 1 month | 1-3 months | 3-12 months | 1-5 years | > 5 years | ||||||||||||||||
Fair value hedges | ||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||
Notional | - | - | - | 88 | 21 | |||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||
Notional | - | - | - | - | 8 | |||||||||||||||
Cash flow hedges | ||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||
Notional | - | - | - | - | 5,540 | |||||||||||||||
Average fixed interest rate | - | - | - | - | 2.83 | % | ||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||
Notional | - | - | - | 121 | 835 | |||||||||||||||
Average exchange rate EUR/USD | - | - | - | 1.16 | 1.13 | |||||||||||||||
Average exchange rate EUR/GBP | - | - | - | - | - | |||||||||||||||
Average exchange rate USD/EUR | - | - | - | 0.87 | 0.88 | |||||||||||||||
Average exchange rate USD/GBP | - | - | - | 0.74 | 0.76 | |||||||||||||||
Average exchange rate GBP/EUR | - | - | - | 1.35 | 1.32 | |||||||||||||||
Average exchange rate GBP/USD | - | - | - | - | - | |||||||||||||||
Net investment hedges | ||||||||||||||||||||
Foreign exchange - FX forward | ||||||||||||||||||||
Notional | (8 | ) | (1 | ) | - | - | - | |||||||||||||
Average exchange rate EUR/USD | 0.91 | 0.91 | - | - | - | |||||||||||||||
Average exchange rate EUR/GBP | 1.15 | - | - | - | - |
Annual Report on Form 20-F 2023 | 239 |
![]() | About Aegon Governance and risk management Financial information | |||
2022 | ||||||||||||||||||||
Maturity | ||||||||||||||||||||
Up to 1 month | 1-3 months | 3-12 months | 1-5 years | > 5 years | ||||||||||||||||
Fair value hedges | ||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||
Notional | - | - | - | 87 | 26 | |||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||
Notional | - | - | - | - | 8 | |||||||||||||||
Cash flow hedges | ||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||
Notional | - | - | - | - | 6,738 | |||||||||||||||
Average fixed interest rate | - | - | - | - | 2.90% | |||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||
Notional | - | - | - | 88 | 788 | |||||||||||||||
Average exchange rate EUR/USD | - | - | - | 1.18 | 1.14 | |||||||||||||||
Average exchange rate EUR/GBP | - | - | - | - | - | |||||||||||||||
Average exchange rate USD/EUR | - | - | - | 0.85 | 0.88 | |||||||||||||||
Average exchange rate USD/GBP | - | - | - | 0.75 | 0.75 | |||||||||||||||
Average exchange rate GBP/EUR | - | - | - | - | - | |||||||||||||||
Average exchange rate GBP/USD | - | - | - | 1.34 | 1.34 | |||||||||||||||
Net investment hedges | ||||||||||||||||||||
Foreign exchange - FX forward | ||||||||||||||||||||
Notional | (4 | ) | 23 | (5 | ) | - | - | |||||||||||||
Average exchange rate EUR/USD | 0.94 | 0.94 | 0.94 | - | - | |||||||||||||||
Average exchange rate EUR/GBP | 1.13 | 1.13 | 1.13 | - | - |
2023 | ||||||||||||||||
Carrying amounts | ||||||||||||||||
Notional | Assets | Liabilities | Changes in fair value used for calculating hedge ineffectiveness | | ||||||||||||
Fair value hedges | ||||||||||||||||
Interest rate contracts | 109 | 1 | 4 | - | ||||||||||||
Foreign exchange contracts | 8 | 4 | - | 1 | ||||||||||||
Cash flow hedges | ||||||||||||||||
Interest rate contracts | 5,540 | 42 | 950 | 106 | ||||||||||||
Foreign exchange contracts | 956 | 105 | 11 | (44 | ) | |||||||||||
Net investment hedges | ||||||||||||||||
Foreign exchange - FX forward | (9 | ) | 39 | 48 | - |
Notes to the consolidated financial statements Note 20 | ||||
2022 | ||||||||||||||||
Carrying amounts | ||||||||||||||||
Notional | Assets | Liabilities | Changes in fair value used for calculating hedge ineffectiveness | | ||||||||||||
Fair value hedges | ||||||||||||||||
Interest rate contracts | 113 | - | 4 | (3 | ) | |||||||||||
Foreign exchange contracts | 8 | 3 | - | - | ||||||||||||
Cash flow hedges | ||||||||||||||||
Interest rate contracts | 6,738 | 55 | 1,102 | (383 | ) | |||||||||||
Foreign exchange contracts | 876 | 149 | 6 | 116 | ||||||||||||
Net investment hedges | ||||||||||||||||
Foreign exchange - FX forward | 14 | 118 | 104 | - |
2023 | ||||||||||||||||||||||||||||||
Carrying amounts | Accumulated amount of fair value adjustments on the hedged item | | Cash flow hedge / currency translation reserve | | ||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Balance sheet line item | Change in fair value of hedged item for ineffec- tiveness assessment | | Continuing hedges | Discontinued hedges | ||||||||||||||||||||||
Fair value hedges | ||||||||||||||||||||||||||||||
Corporate Debt Hedge Program | - | 67 | - | (13 | ) | Trust pass-through securities | 3 | n.a. | n.a. | |||||||||||||||||||||
Offshore Liability Hedge Program | - | 12 | - | 2 | Investment contracts without discretionary participating features | - | n.a. | n.a. | ||||||||||||||||||||||
Synthetic Asset Fair value hedges | 34 | - | 4 | - | Investments | 1 | n.a. | n.a. | ||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||
Synethetic Asset Cash flow hedges | 2,672 | - | - | - | Investments | 11 | 87 | - | ||||||||||||||||||||||
Life & Health Liability Investment Risk Hedge Program | n.a. | n.a. | n.a. | n.a. | n.a. | 5 | (348 | ) | 232 | |||||||||||||||||||||
Long Term Care (LTC) Liability Hedge Program | n.a. | n.a. | n.a. | n.a. | n.a. | 1 | (15 | ) | 1,085 | |||||||||||||||||||||
IMD Payout Hedge | n.a. | n.a. | n.a. | n.a. | n.a. | - | - | 29 | ||||||||||||||||||||||
TRS (Vivendi) Hedge | n.a. | n.a. | n.a. | n.a. | n.a. | - | - | 3 | ||||||||||||||||||||||
Net investment hedges | ||||||||||||||||||||||||||||||
Investments in foreign operations | n.a. | n.a. | n.a. | n.a. | n.a. | - | (324 | ) | - |
1 | n.a. in above table should be read as “not applicable”. |
Annual Report on Form 20-F 2023 | 241 |
![]() | About Aegon Governance and risk management Financial information | |||
2022 | ||||||||||||||||||||||||||||||
Carrying amounts | Accumulated amount of fair value adjustments on the hedged item | | Cash flow hedge / currency translation reserve | | ||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Balance sheet line item | Change in fair value of hedged item for ineffec- tiveness assessment | | Continuing hedges | | Discontinued hedges | | ||||||||||||||||||||
Fair value hedges | ||||||||||||||||||||||||||||||
Corporate Debt Hedge Program | - | 72 | - | (10 | ) | Trust pass-through securities | 15 | n.a. | n.a. | |||||||||||||||||||||
Offshore Liability Hedge Program | - | 12 | - | 2 | Investment contracts without discretionary participating features | (3 | ) | n.a. | n.a. | |||||||||||||||||||||
Synthetic Asset Fair value hedges | 34 | - | 3 | - | Investments | (8 | ) | n.a. | n.a. | |||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||
Synethetic Asset Cash flow hedges | 3,127 | n.a. | n.a. | n.a. | Investments | (1,667 | ) | 82 | ||||||||||||||||||||||
Life & Health Liability Investment | ||||||||||||||||||||||||||||||
Risk Hedge Program | n.a. | n.a. | n.a. | n.a. | n.a. | (586 | ) | (365 | ) | 393 | ||||||||||||||||||||
Long Term Care (LTC) Liability | ||||||||||||||||||||||||||||||
Hedge Program | n.a. | n.a. | n.a. | n.a. | n.a. | (129 | ) | (17 | ) | 1,177 | ||||||||||||||||||||
IMD Payout Hedge | n.a. | n.a. | n.a. | n.a. | n.a. | - | - | 31 | ||||||||||||||||||||||
TRS (Vivendi) Hedge | 4 | |||||||||||||||||||||||||||||
Net investment hedges | ||||||||||||||||||||||||||||||
Investments in foreign operations | n.a. | n.a. | n.a. | n.a. | n.a. | - | (371 | ) | - |
1 | n.a. in above table should be read as “not applicable”. |
∎ | Differences between the expected and actual volume of prepayments, as Aegon hedged to the expected repayment date taking into account expected prepayments based on past experience; |
∎ | Difference in the discounting between the hedged item and the hedging instrument, as cash collateralized interest rate swaps were discounted using Overnight Indexed Swaps (OIS) discount curves, which were not applied to the fixed rate mortgages; |
∎ | Hedging derivatives with a non-zero fair value at the date of initial designation as a hedging instrument; and |
∎ | Counterparty credit risk which impacted the fair value of uncollateralized interest rate swaps but not the hedged items. |
Notes to the consolidated financial statements Note | ||||
∎ | If there is a mismatch between critical terms of hedging instruments and hedged items, changes in fair value may not be offset. The qualitative hedge effectiveness test assures all critical terms align. |
∎ | Counterparty default: If the counterparty fails to fulfill the contract, the hedge would not be highly effective. All derivatives in this program are collateralized or cleared, so impact from this credit risk will not dominate the hedge relationship. |
∎ | Counterparty default: If the counterparty fails to fulfill the contract, the hedge would not be highly effective. All derivatives in this program are collateralized or cleared, so impact from this credit risk will not dominate the hedge relationship. |
∎ | Expected future transactions fail to occur as projected: the hedging instrument (i.e. FSS) terms are already known and easily valued. However, the hedged item consists of one or more forecasted asset purchases for which we are unable to project exactly the dates, coupon rates, and other underlying terms. Given these unknown variables in the hedged item, for the period in which the FSS remains in inventory and the forecasted transactions have not been completed, the hedged item portion of this relationship will be setup assuming identical dates and rates as outlined in the hedging instrument. |
∎ | When the forecasted transaction (i.e. bond purchase) is completed and the terms of the underlying hedged item are known, hedge ineffectiveness would possibly arise if the timing of the asset being purchased differs from the unwind date of the swaps designated as the hedging instrument, or the coupon rate of the asset being purchased differs from the coupon rate on the receive leg of the swap, or a combination of both. |
∎ | The hedge ineffectiveness would possibly arise if the timing of the asset being purchased differs from the unwind date of the swaps designated as the hedging instrument, or the coupon rate of the asset being purchased differs from the coupon rate on the receive leg of the swap, or a combination of both. |
∎ | Mismatch of critical terms: If critical terms do not match between the hedged item and the hedged instrument, hedge ineffectiveness can arise. |
∎ | Counterparty default: If the counterparty fails to fulfill the contract, the hedge would not be highly effective. All derivatives in this program are collateralized or cleared, so impact from this credit risk will not dominate the hedge relationship. |
2023 | ||||||||||||||||||
Amounts reclassified from reserves to P&L as | ||||||||||||||||||
Gains / (loss) recognized in OCI | Hedge ineffective- ness recognized in P&L | P&L line item that includes hedge ineffectiveness | hedged cash flows will no longer occur | hedged item affected P&L | ||||||||||||||
Fair value hedges | ||||||||||||||||||
Interest rate contracts | n.a. | (3 | ) | Results from financial transactions | n.a. | n.a. | ||||||||||||
Foreign exchange contracts | n.a. | - | Results from financial transactions | n.a. | n.a. | |||||||||||||
Cash flow hedges | ||||||||||||||||||
Interest rate contracts | - | - | Results from financial transactions | - | - | |||||||||||||
Foreign exchange contracts | - | (2 | ) | Results from financial transactions | - | - | ||||||||||||
Net investment hedges | ||||||||||||||||||
Foreign exchange - FX forward | - | - | Results from financial transactions | - | - |
1 | n.a. in above table should be read as “not applicable”. |
Annual Report on Form 20-F 2023 | 243 |
![]() | About Aegon Governance and risk management Financial information | |||
2022 | ||||||||||||||||||
Amounts reclassified from reserves to P&L as | ||||||||||||||||||
Gains / (loss) recognized in OCI | Hedge ineffectiveness recognized in P&L | P&L line item that includes hedge ineffectiveness | hedged cash flows will no longer occur | hedged item affected P&L | ||||||||||||||
Fair value hedges | ||||||||||||||||||
Interest rate contracts | n.a. | 1 | Results from financial transactions | n.a. | n.a. | |||||||||||||
Foreign exchange contracts | n.a. | (4 | ) | Results from financial transactions | n.a. | n.a. | ||||||||||||
Cash flow hedges | ||||||||||||||||||
Interest rate contracts | - | 1 | Results from financial transactions | - | - | |||||||||||||
Foreign exchange contracts | - | 2 | Results from financial transactions | - | - | |||||||||||||
Net investment hedges | ||||||||||||||||||
Foreign exchange - FX forward | - | - | Results from financial transactions | - | - |
1 | n.a. in above table should be read as “not applicable”. |
CDSs | ||||||||
Credit derivative disclosure by quality | Nominal amount | Fair value | ||||||
On January 1, 2023 | 4,820 | 28 | ||||||
Increase/(Decrease) during the year | (778 | ) | 43 | |||||
On December 31, 2023 | 4,043 | 71 |
CDSs | ||||||||
Credit derivative disclosure by quality | Nominal amount | Fair value | ||||||
On January 1, 2022 | 4,449 | 70 | ||||||
Increase/(Decrease) during the year | 371 | (42 | ) | |||||
On December 31, 2022 | 4,820 | 28 |
Joint ventures | Associates | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
On January 1 | 1,430 | 1,715 | 165 | 1,289 | ||||||||||||
Additions | 49 | 30 | 2,765 | 40 | ||||||||||||
Disposals | - | (81 | ) | (12 | ) | (8 | ) | |||||||||
Share in net income | 196 | 289 | 103 | 4 | ||||||||||||
Share in changes in equity (note 25.6) | (2 | ) | (33 | ) | (9 | ) | 3 | |||||||||
Impairment losses | - | - | (25 | ) | (9 | ) | ||||||||||
Dividend | (211 | ) | (79 | ) | (81 | ) | (58 | ) | ||||||||
Net exchange difference | (32 | ) | (28 | ) | - | (1 | ) | |||||||||
Transfers to disposal groups | - | (382 | ) | - | (1,096 | ) | ||||||||||
On December 31 | 1,430 | 1,430 | 2,906 | 165 |
Notes to the consolidated financial statements Note 21 | ||||
Santander Spain Life | AIFMC | Other Joint ventures | ||||||||||||||||||||||||||||||||||||||||||||||
Santander Spain Life | AIFMC | Other Joint ventures | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Summarized statement of financial position | ||||||||||||||||||||||||||||||||||||||||||||||||
Summarized statement of financial position | ||||||||||||||||||||||||||||||||||||||||||||||||
Summarized statement of financial position | ||||||||||||||||||||||||||||||||||||||||||||||||
Summarized statement of financial position | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 20 | 14 | 351 | 227 | 157 | 198 | 18 | 23 | 421 | 392 | 47 | 99 | ||||||||||||||||||||||||||||||||||||
Other current assets | 130 | 35 | 810 | 423 | 697 | 588 | ||||||||||||||||||||||||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Other current assets | 76 | 73 | 654 | 836 | 840 | 561 | ||||||||||||||||||||||||||||||||||||||||||
Total current assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Total current assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Total current assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Total current assets | 150 | 50 | 1,161 | 650 | 854 | 785 | 94 | 96 | 1,075 | 1,229 | 887 | 660 | ||||||||||||||||||||||||||||||||||||
Non-current assets | 1,134 | 700 | 204 | 127 | 5,574 | 6,442 | ||||||||||||||||||||||||||||||||||||||||||
Non-current assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-current assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-current assets | 1,056 | 1,068 | - | 200 | 6,234 | 5,325 | ||||||||||||||||||||||||||||||||||||||||||
Total assets | 1,284 | 750 | 1,364 | 777 | 6,428 | 7,227 | ||||||||||||||||||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | 1,150 | 1,164 | 1,075 | 1,429 | 7,121 | 5,985 | ||||||||||||||||||||||||||||||||||||||||||
Current financial liabilities excluding trade payables and other provisions | 0 | 0 | 0 | 0 | 7 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | 126 | 79 | 613 | 360 | 501 | 445 | 64 | 95 | (149 | ) | 526 | 643 | 499 | |||||||||||||||||||||||||||||||||||
Total current liabilities | 126 | 79 | 613 | 360 | 509 | 445 | ||||||||||||||||||||||||||||||||||||||||||
Total current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Total current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Total current liabilities | 64 | 95 | (149 | ) | 526 | 643 | 500 | |||||||||||||||||||||||||||||||||||||||||
Non-current financial liabilities excluding trade payables and other provisions | 0 | 0 | 0 | 0 | 183 | 50 | ||||||||||||||||||||||||||||||||||||||||||
Non-current financial liabilities excluding trade payables and other provisions | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-current financial liabilities excluding trade payables and other provisions | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-current financial liabilities excluding trade payables and other provisions | - | - | - | - | 64 | 67 | ||||||||||||||||||||||||||||||||||||||||||
Other non-current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other non-current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other non-current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other non-current liabilities | 510 | 272 | 0 | 0 | 3,921 | 4,996 | 403 | 410 | 414 | - | 5,257 | 4,351 | ||||||||||||||||||||||||||||||||||||
Total non-current financial liabilities | 510 | 272 | 0 | 0 | 4,104 | 5,046 | 403 | 410 | 414 | - | 5,321 | 4,418 | ||||||||||||||||||||||||||||||||||||
Total liabilities | 636 | 351 | 613 | 360 | 4,613 | 5,490 | 467 | 506 | 265 | 526 | 5,964 | 4,918 | ||||||||||||||||||||||||||||||||||||
Net assets | 648 | 399 | 752 | 417 | 1,816 | 1,737 | 683 | 658 | 810 | 903 | 1,157 | 1,067 | ||||||||||||||||||||||||||||||||||||
Summarized statement of comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||
Summarized statement of comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||
Summarized statement of comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||
Summarized statement of comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | 247 | 357 | 858 | 584 | 1,866 | 2,058 | 482 | 265 | 478 | 644 | 2,586 | 2,267 | ||||||||||||||||||||||||||||||||||||
Results from financial transactions | 0 | (4 | ) | 0 | 0 | 51 | 20 | |||||||||||||||||||||||||||||||||||||||||
Results from financial transactions | ||||||||||||||||||||||||||||||||||||||||||||||||
Results from financial transactions | ||||||||||||||||||||||||||||||||||||||||||||||||
Results from financial transactions | - | - | - | - | - | (2 | ) | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | (25 | ) | (18 | ) | (3 | ) | (4 | ) | (21 | ) | (8 | ) | (32 | ) | (30 | ) | (5 | ) | (4 | ) | (27 | ) | (28 | ) | ||||||||||||||||||||||||
Interest income | 2 | 3 | 8 | 5 | 25 | 8 | ||||||||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 4 | 1 | 10 | 9 | 117 | 103 | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 0 | 0 | 0 | 0 | (13 | ) | 0 | - | - | - | - | (10 | ) | (7 | ) | |||||||||||||||||||||||||||||||||
Profit or loss | 61 | 57 | 386 | 252 | 247 | 157 | ||||||||||||||||||||||||||||||||||||||||||
Profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||
Profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||
Profit or loss | 97 | 79 | 193 | 330 | 259 | 258 | ||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) or result | (12 | ) | (14 | ) | (109 | ) | (71 | ) | (40 | ) | 36 | |||||||||||||||||||||||||||||||||||||
Income tax (expense) or income | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) or income | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) or income | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) or income | (24 | ) | (18 | ) | (53 | ) | (92 | ) | (88 | ) | (53 | ) | ||||||||||||||||||||||||||||||||||||
Post-tax profit or (loss) | 48 | 43 | 277 | 181 | 208 | 194 | 73 | 61 | 140 | 238 | 170 | 205 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | (2 | ) | 2 | 0 | 0 | 53 | 10 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 9 | (24 | ) | - | - | 32 | (41 | ) | ||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | 47 | 45 | 277 | 181 | 260 | 203 | 82 | 37 | 140 | 238 | 203 | 164 | ||||||||||||||||||||||||||||||||||||
Dividends received | 0 | 19 | 0 | 33 | 18 | 43 | ||||||||||||||||||||||||||||||||||||||||||
Dividends received | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends received | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends received | 58 | 30 | 122 | - | 211 | 54 |
Annual Report on Form 20-F 2023 | 245 |
![]() | ||||
Santander Spain Life | AIFMC | Other Joint ventures | ||||||||||||||||||||||||||||||||||||||||||||||
Santander Spain Life | AIFMC | Other Joint ventures | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Net assets of joint venture as presented above | 648 | 399 | 752 | 417 | 1,816 | 1,737 | ||||||||||||||||||||||||||||||||||||||||||
Net assets of joint venture as presented above | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets of joint venture as presented above | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets of joint venture as presented above | 683 | 658 | 810 | 903 | 1,157 | 1,067 | ||||||||||||||||||||||||||||||||||||||||||
Net assets of joint venture excluding goodwill | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets of joint venture excluding goodwill | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets of joint venture excluding goodwill | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets of joint venture excluding goodwill | 568 | 66 | 751 | 416 | 1,681 | 1,343 | 603 | 578 | 809 | 902 | 1,030 | 972 | ||||||||||||||||||||||||||||||||||||
Group share of net assets of joint venture, excluding goodwill | 290 | 34 | 368 | 204 | 857 | 562 | ||||||||||||||||||||||||||||||||||||||||||
Group share of net assets of joint venture, excluding goodwill | ||||||||||||||||||||||||||||||||||||||||||||||||
Group share of net assets of joint venture, excluding goodwill | ||||||||||||||||||||||||||||||||||||||||||||||||
Group share of net assets of joint venture, excluding goodwill | 308 | 295 | 397 | 471 | 518 | 488 | ||||||||||||||||||||||||||||||||||||||||||
Goodwill on acquisition | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill on acquisition | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill on acquisition | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill on acquisition | 80 | 333 | 1 | 1 | 148 | 244 | 80 | 80 | 1 | 1 | 128 | 95 | ||||||||||||||||||||||||||||||||||||
Carrying amount | 369 | 366 | 369 | 205 | 1,005 | 806 | ||||||||||||||||||||||||||||||||||||||||||
Carrying amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Carrying amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Carrying amount | 387 | 375 | 397 | 471 | 646 | 584 |
Santander Spain Life | AIFMC | Other Joint ventures | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Post-tax profit or loss | 25 | 22 | 136 | 89 | 104 | 81 | ||||||||||||||||||
Other comprehensive income | (1 | ) | 1 | - | - | 26 | (10 | ) | ||||||||||||||||
Total comprehensive income | 24 | 23 | 136 | 89 | 131 | 71 |
Santander Spain Life | AIFMC | Other Joint ventures | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Post-tax profit or loss | 37 | 31 | 69 | 116 | 90 | 105 | ||||||||||||||||||
Other comprehensive income | 4 | (12 | ) | - | - | 17 | (21 | ) | ||||||||||||||||
Total comprehensive income | 42 | 19 | 69 | 116 | 107 | 84 |
Amvest Residential Core Fund | Other Associates | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Summarized statement of financial position | ||||||||||||||||
Current assets | 49 | 34 | 132 | 167 | ||||||||||||
Non-current assets | 4,380 | 3,876 | 426 | 787 | ||||||||||||
Total assets | 4,429 | 3,910 | 558 | 955 | ||||||||||||
Current liabilities | 50 | 55 | 61 | 155 | ||||||||||||
Non-current liabilities | 921 | 671 | 82 | 255 | ||||||||||||
Total liabilities | 971 | 726 | 144 | 410 | ||||||||||||
Net assets | 3,458 | 3,184 | 414 | 545 | ||||||||||||
Summarized statement of comprehensive income | ||||||||||||||||
Revenue | 109 | 104 | 595 | 965 | ||||||||||||
Interest expense | 0 | - | 0 | (35 | ) | |||||||||||
Profit or loss | 433 | 281 | (76 | ) | 39 | |||||||||||
Income tax (expense) or result | 0 | - | 0 | (30 | ) | |||||||||||
Post-tax profit or (loss) | 433 | 281 | (76 | ) | 8 | |||||||||||
Other comprehensive income | - | - | (13 | ) | 109 | |||||||||||
Total comprehensive income | 433 | 281 | (89 | ) | 117 | |||||||||||
Dividends received | 27 | 32 | 35 | 45 |
![]() |
Amvest Residential Core Fund | Other Associates | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Post-tax profit or loss | 126 | 80 | (14 | ) | 23 | |||||||||||
Other comprehensive income | 0 | 0 | (6 | ) | 7 | |||||||||||
Total comprehensive income | 126 | 80 | (20 | ) | 31 | |||||||||||
Carrying amount | 1,020 | 919 | 269 | 345 |
Assets arising from reinsurance contracts related to: | 2021 | 2020 | ||||||
Life insurance general account | 19,409 | 17,421 | ||||||
Non-life insurance | 1,245 | 1,144 | ||||||
Investment contracts | 338 | 345 | ||||||
At December 31 | 20,992 | 18,910 | ||||||
Current | 16 | 16 | ||||||
Non-current | 20,976 | 18,895 |
a.s.r. | ||||
2023 | ||||
Total assets | 150,758 | |||
Insurance liabilities | ||||
99,475 | ||||
Borrowings and subordinated liabilities | ||||
8,386 | ||||
Derivatives | ||||
10,132 | ||||
Other liabilities | ||||
Total liabilities | 141,460 | |||
Non-controlling interest | ||||
Other | ||||
1,008 | ||||
Net assets | 8,289 |
Notes to the consolidated financial statements Note 21 | ||||
a.s.r. | ||||
2023 | ||||
Summarized statement of comprehensive income | ||||
Insurance revenues | ||||
450 | ||||
Income tax expense or income | (103 | ) | ||
Post-tax profit or loss from continuing operations | 347 | |||
Post-tax profit or loss from discontinued operations | ||||
Other comprehensive income - that may be recycled to profit or loss | 17 | |||
Other comprehensive income - that will not be recycled to profit or loss | (58 | ) | ||
Total comprehensive income | 306 | |||
Dividends received | 68 | |||
Group share | 29,98 % | |||
Group share of post-tax profit or loss | 110 | |||
Group share of other comprehensive income | (12 | ) | ||
a.s.r. | ||||
2023 | ||||
Net assets of a.s.r. as presented above | 8,289 | |||
Net assets of a.s.r., excluding goodwill, fair value adjustments and other equity transactions | 8,180 | |||
Group share of net assets of a.s.r., excluding goodwill, fair value adjustments and other equity transactions | 2,453 | |||
Fair value adjustments | 47 | |||
Goodwill on acquisition | 117 | |||
Carrying amount of investment in a.s.r. | 2,618 |
Other Associates | ||||||||
2023 | 2022 | |||||||
Summarized statement of financial position | ||||||||
Current assets | 309 | 105 | ||||||
Non-current assets | 725 | 139 | ||||||
Total assets | 1,034 | 244 | ||||||
Current liabilities | 217 | 37 | ||||||
Non-current liabilities | 17 | 45 | ||||||
Total current liabilities | 235 | 82 | ||||||
Net assets | 799 | 162 | ||||||
Summarized statement of comprehensive income | ||||||||
Post-tax profit or (loss) | (7 | ) | (11 | ) | ||||
Other comprehensive income | 6 | 2 | ||||||
Total comprehensive income | (1 | ) | (9 | ) | ||||
Dividends received | 11 | 28 | ||||||
Carrying amount | 288 | 165 |
Annual Report on Form 20-F 2023 | 247 |
![]() | About Aegon Governance and risk management Financial information | |||
2023 | 2022 | |||||||
Deferred transaction costs for investment management services | 447 | 452 | ||||||
Current | 20 | 29 | ||||||
Non-current | 427 | 424 |
Deferred transaction costs | ||||||||
On January 1, 2023 | 452 | |||||||
Costs deferred during the year | 29 | |||||||
Amortization through income statement | (21 | ) | ||||||
Net exchange differences | ( | ) | ||||||
On December 31, 2023 | ||||||||
447 | ||||||||
On January 1, 2022 | 428 | |||||||
Costs deferred during the year | 28 | |||||||
Amortization through income statement | (28 | ) | ||||||
Net exchange differences | 25 | |||||||
Note | 2023 | 2022 | ||||||||||
Real estate held for own use and equipment | 23.1 | 258 | 324 | |||||||||
Receivables | 23.2 | 3,567 | 7,857 | |||||||||
Accrued income | 23.3 | 736 | 814 | |||||||||
Right-of-use | 23.4 | 150 | 158 | |||||||||
On December 31 | 4,712 | 9,153 |
Total real estate held for own use and equipment | 2023 | 2022 | ||||||||||
Real estate held for own use | 64 | 73 | ||||||||||
Equipment | 194 | 251 | ||||||||||
On December 31 | 258 | 324 |
Notes to the consolidated financial statements Note 23 |
Movements during the year in reinsurance assets relating to non-life insurance: | 2021 | 2020 | ||||||
At January 1 | 1,144 | 1,376 | ||||||
Gross premium and deposits – existing and new business | 129 | 97 | ||||||
Unwind of discount / interest credited | 83 | 87 | ||||||
Insurance liabilities released | (113 | ) | (191 | ) | ||||
Changes in unearned premiums | (75 | ) | (38 | ) | ||||
Incurred related to current year | 91 | 20 | ||||||
Incurred related to prior years | 49 | 32 | ||||||
Release for claims settled current year | (29 | ) | (24 | ) | ||||
Release for claims settled prior years | (108 | ) | (130 | ) | ||||
Change in IBNR | 1 | 4 | ||||||
Net exchange differences | 84 | (103 | ) | |||||
Other movements | (11 | ) | 13 | |||||
At December 31 | 1,245 | 1,144 |
Assets arising from reinsurance contracts related to: | 2021 | 2020 | ||||||
Normal course of business | 7,809 | 6,485 | ||||||
Exit of a business | 13,183 | 12,426 | ||||||
At December 31 | 20,992 | 18,910 |
2021 | 2020 | |||||||
DPAC for insurance contracts and investment contracts with discretionary participation features | 9,303 | 8,253 | ||||||
Deferred cost of reinsurance | 766 | 141 | ||||||
Deferred transaction costs for investment management services | 434 | 404 | ||||||
At December 31 | 10,503 | 8,799 | ||||||
Current | 683 | 679 | ||||||
Non-current | 9,820 | 8,120 |
2021 | 2020 | |||||||||||||||||||||||
DPAC | Deferred costs of reinsurance | Deferred transaction costs | DPAC | Deferred costs of reinsurance | Deferred transaction costs | |||||||||||||||||||
At January 1 | 8,253 | 141 | 404 | 9,974 | 389 | 442 | ||||||||||||||||||
Costs deferred during the year | 636 | 619 | 25 | 725 | (4 | ) | 20 | |||||||||||||||||
Amortization through income statement | (899 | ) | (32 | ) | (26 | ) | (753 | ) | (24 | ) | (23 | ) | ||||||||||||
Shadow accounting adjustments | 699 | 17 | 0 | (950 | ) | (17 | ) | 0 | ||||||||||||||||
Impairments | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Net exchange differences | 621 | 21 | 30 | (739 | ) | (1 | ) | (36 | ) | |||||||||||||||
Disposal of Group Assets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other | (7 | ) | 0 | 0 | (4 | ) | (202 | ) | 0 | |||||||||||||||
At December 31 | 9,303 | 766 | 434 | 8,253 | 141 | 404 |
![]() |
Note | 2021 | 2020 | ||||||||||
Real estate held for own use and equipment | 28.1 | 455 | 472 | |||||||||
Receivables | 28.2 | 5,622 | 6,826 | |||||||||
Accrued income | 28.3 | 1,366 | 1,356 | |||||||||
Right-of-use assets | 28.4 | 199 | 211 | |||||||||
At December 31 | 7,642 | 8,865 |
28.1 Real estate held for own use and equipment | ||||||||||
Total real estate held for own use and equipment | 2021 | 2020 | ||||||||
General account real estate held for own use | 185 | 209 | ||||||||
Equipment | 270 | 263 | ||||||||
At December 31 | 455 | 472 |
General account real estate held for own use | 2021 | 2020 | ||||||||
Net book value | ||||||||||
At January 1 | 209 | 208 | ||||||||
Additions | - | 9 | ||||||||
Capitalized subsequent expenditure | 7 | (2 | ) | |||||||
Disposals | - | (5 | ) | |||||||
Transfer to investments in real estate | (14 | ) | - | |||||||
Unrealized gains/(losses) through equity | (4 | ) | 20 | |||||||
Realized gains/(losses) through income statement | - | (5 | ) | |||||||
Depreciation through income statement | (5 | ) | (5 | ) | ||||||
Impairment losses | (13 | ) | (4 | ) | ||||||
Impairment losses reversed | - | 1 | ||||||||
Net exchange differences | 5 | (8 | ) | |||||||
At December 31 | 185 | 209 | ||||||||
Gross carrying value | 218 | 269 | ||||||||
Accumulated depreciation and impairment losses | (33 | ) | (60 | ) | ||||||
Net book value | 185 | 209 | ||||||||
General account real estate held for own use: | ||||||||||
Carrying amount under a historical cost model | 165 | 201 | ||||||||
% of real estate appraised in the current year | 50% | 93% | ||||||||
% of appraisals performed by independent external appraisers | 100% | 99% |
Real estate held for own use | 2023 | 2022 | ||||||
Cost | ||||||||
On January 1 | 73 | 185 | ||||||
Capitalized subsequent expenditure | 1 | 1 | ||||||
Disposals | - | (32 | ) | |||||
Unrealized gains/(losses) through equity | (2 | ) | (1 | ) | ||||
Depreciation through income statement | (2 | ) | (4 | ) | ||||
Impairment losses | (3 | ) | - | |||||
Transfers to disposal groups | - | (76 | ) | |||||
Net exchange differences | (2 | ) | 4 | |||||
Other | - | (4 | ) | |||||
On December 31 | 64 | 73 | ||||||
Gross carrying value | 87 | 96 | ||||||
Accumulated depreciation and impairments | (23 | ) | (23 | ) | ||||
Net book value on December 31 | 64 | 73 | ||||||
Real estate held for own use: | ||||||||
Carrying amount under a historical cost model | 70 | 72 | ||||||
% of real estate appraised in the current year | 76% | 7% | ||||||
% of appraisals performed by independent external appraisers | 100% | 100% |
![]() |
Equipment | 2021 | 2020 | 2023 | 2022 | ||||||||||||
Cost | ||||||||||||||||
Net book value | ||||||||||||||||
At January 1 | 263 | 281 | ||||||||||||||
On January 1 | ||||||||||||||||
On January 1 | ||||||||||||||||
On January 1 | ||||||||||||||||
On January 1 | 251 | 270 | ||||||||||||||
Additions | 69 | 73 | ||||||||||||||
Additions | ||||||||||||||||
Additions | ||||||||||||||||
Additions | 62 | 72 | ||||||||||||||
Acquisitions through business combinations | ||||||||||||||||
Acquisitions through business combinations | ||||||||||||||||
Acquisitions through business combinations | ||||||||||||||||
Acquisitions through business combinations | - | 2 | ||||||||||||||
Disposals | ||||||||||||||||
Disposals | ||||||||||||||||
Disposals | ||||||||||||||||
Disposals | (2 | ) | (1 | ) | (47 | ) | (6 | ) | ||||||||
Depreciation through income statement | (71 | ) | (71 | ) | ||||||||||||
Depreciation through income statement | ||||||||||||||||
Depreciation through income statement | ||||||||||||||||
Depreciation through income statement | (66 | ) | (71 | ) | ||||||||||||
Impairment losses | (4 | ) | - | |||||||||||||
Transfers to disposal groups | ||||||||||||||||
Transfers to disposal groups | ||||||||||||||||
Transfers to disposal groups | ||||||||||||||||
Transfers to disposal groups | - | (27 | ) | |||||||||||||
Net exchange differences | ||||||||||||||||
Net exchange differences | ||||||||||||||||
Net exchange differences | ||||||||||||||||
Net exchange differences | 16 | (19 | ) | (6 | ) | 13 | ||||||||||
Other | (1 | ) | - | |||||||||||||
At December 31 | 270 | 263 | ||||||||||||||
Other | ||||||||||||||||
Other | ||||||||||||||||
Other | - | (1 | ) | |||||||||||||
On December 31 | 194 | 251 | ||||||||||||||
Gross carrying value | 679 | 628 | ||||||||||||||
Gross carrying value | ||||||||||||||||
Gross carrying value | ||||||||||||||||
Gross carrying value | 602 | 636 | ||||||||||||||
Accumulated depreciation and impairment losses | | (409 | ) | (365 | ) | |||||||||||
Net book value | 270 | 263 | ||||||||||||||
Accumulated depreciation and impairments | ||||||||||||||||
Accumulated depreciation and impairments | ||||||||||||||||
Accumulated depreciation and impairments | ||||||||||||||||
Accumulated depreciation and impairments | (408 | ) | (386 | ) | ||||||||||||
Net book value on December 31 | 194 | 251 |
Annual Report on Form 20-F 2023 | 249 |
2021 | 2020 | |||||||
Loans to associates | 8 | 9 | ||||||
Receivables from policyholders | 691 | 637 | ||||||
Receivables from brokers and agents | 310 | 264 | ||||||
Receivables from reinsurers | 750 | 733 | ||||||
Cash outstanding from assets sold | 160 | 112 | ||||||
Trade receivables | 1,393 | 1,956 | ||||||
Cash collateral | 314 | 997 | ||||||
Income tax receivable | 229 | 285 | ||||||
Other | 1,885 | 1,921 | ||||||
Provision for doubtful debts | (120 | ) | (88 | ) | ||||
At December 31 | 5,622 | 6,826 | ||||||
Current | 5,600 | 6,801 | ||||||
Non-current | 21 | 25 |
![]() | About Aegon Governance and risk management Financial information | |||
2023 | 2022 | |||||||
Loans to associates | 8 | 8 | ||||||
Receivables from policyholders | 137 | 142 | ||||||
Receivables from brokers and agents | 239 | 256 | ||||||
Cash outstanding from assets sold | 133 | 134 | ||||||
Trade receivables | 178 | 881 | ||||||
Cash collateral | 516 | 3,372 | ||||||
Income tax receivable | 172 | 294 | ||||||
Other | 2,194 | 2,899 | ||||||
Expected credit losses | (10 | ) | (129 | ) | ||||
On December 31 | 3,567 | 7,857 | ||||||
Current | 3,564 | 7,843 | ||||||
Non-current | 2 | 13 |
2021 | 2020 | |||||||
At January 1 | (88 | ) | (34 | ) | ||||
Additions charged to earnings | (33 | ) | (71 | ) | ||||
Unused amounts reversed through the income statement | 5 | 2 | ||||||
Used during the year | 3 | 8 | ||||||
Net exchange differences | (6 | ) | 6 | |||||
At December 31 | (120 | ) | (88 | ) |
2023 | 2022 | |||||||
On January 1 | (129 | ) | (113 | ) | ||||
Expected credit losses | (29 | ) | (18 | ) | ||||
Reversal of expected credit losses | - | 2 | ||||||
Transfers to disposal groups | - | 4 | ||||||
Other movements | 148 | (5 | ) | |||||
On December 31 | (10 | ) | (129 | ) |
2023 | 2022 | |||||||
Accrued interest | 736 | 813 | ||||||
Other | - | 1 | ||||||
On December 31 | 736 | 814 | ||||||
Current | 736 | 814 |
Notes to the consolidated financial statements Note | ||||
2021 | 2020 | |||||||
Accrued interest | 1,363 | 1,352 | ||||||
Other | 3 | 4 | ||||||
At December 31 | 1,366 | 1,356 | ||||||
Current | 1,366 | 1,356 | ||||||
Non-current | 0 | 0 |
Real estate for own use | Equipment | Other | Total | |||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||
At January 1, 2021 | 193 | 15 | 3 | 211 | ||||||||||||||||||||||||||||
Real estate for own use | Equipment | Other | Total | |||||||||||||||||||||||||||||
Net Book Value | ||||||||||||||||||||||||||||||||
Net Book Value | ||||||||||||||||||||||||||||||||
Net Book Value | ||||||||||||||||||||||||||||||||
Net Book Value | ||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||
On January 1, 2023 | 143 | 14 | 1 | 158 | ||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Additions | 12 | 9 | 2 | 23 | 19 | 4 | 3 | 26 | ||||||||||||||||||||||||
Disposals | (14 | ) | 0 | 0 | (14 | ) | ||||||||||||||||||||||||||
Disposals | ||||||||||||||||||||||||||||||||
Disposals | ||||||||||||||||||||||||||||||||
Disposals | (1 | ) | - | - | (1 | ) | ||||||||||||||||||||||||||
Modification of lease contracts | ||||||||||||||||||||||||||||||||
Modification of lease contracts | ||||||||||||||||||||||||||||||||
Modification of lease contracts | ||||||||||||||||||||||||||||||||
Modification of lease contracts | 17 | - | - | 17 | 2 | - | - | 2 | ||||||||||||||||||||||||
Depreciation through income statement | (36 | ) | (11 | ) | (2 | ) | (49 | ) | ||||||||||||||||||||||||
Depreciation through income statement | ||||||||||||||||||||||||||||||||
Depreciation through income statement | ||||||||||||||||||||||||||||||||
Depreciation through income statement | (24 | ) | (8 | ) | (1 | ) | (32 | ) | ||||||||||||||||||||||||
Net exchange differences | 10 | 1 | (1 | ) | 10 | |||||||||||||||||||||||||||
At December 31, 2021 | 182 | 14 | 3 | 199 | ||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||
On December 31, 2023 | 138 | 10 | 3 | 150 | ||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||
Gross carrying value | 287 | 43 | 8 | 339 | 247 | 37 | 7 | 290 | ||||||||||||||||||||||||
Accumulated depreciation and impairment losses | (105 | ) | (29 | ) | (6 | ) | (140 | ) | ||||||||||||||||||||||||
Net book value 2021 | 182 | 14 | 3 | 199 | ||||||||||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||||||
Accumulated depreciation | (109 | ) | (27 | ) | (3 | ) | (140 | ) | ||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||
Net book value 2023 | ||||||||||||||||||||||||||||||||
Net book value 2023 | ||||||||||||||||||||||||||||||||
Net book value 2023 | ||||||||||||||||||||||||||||||||
Net book value 2023 | 138 | 10 | 3 | 150 | ||||||||||||||||||||||||||||
At January 1, 2020 | 227 | 25 | 3 | 255 | ||||||||||||||||||||||||||||
Net Book Value | ||||||||||||||||||||||||||||||||
Net Book Value | ||||||||||||||||||||||||||||||||
Net Book Value | ||||||||||||||||||||||||||||||||
Net Book Value | ||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||
On January 1, 2022 | 182 | 14 | 3 | 199 | ||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Additions | 17 | 3 | 2 | 23 | 24 | 10 | 1 | 34 | ||||||||||||||||||||||||
Disposals | (2 | ) | - | - | (2 | ) | ||||||||||||||||||||||||||
Disposals | ||||||||||||||||||||||||||||||||
Disposals | ||||||||||||||||||||||||||||||||
Disposals | (8 | ) | - | - | (8 | ) | ||||||||||||||||||||||||||
Modification of lease contracts | ||||||||||||||||||||||||||||||||
Modification of lease contracts | ||||||||||||||||||||||||||||||||
Modification of lease contracts | ||||||||||||||||||||||||||||||||
Modification of lease contracts | 1 | - | - | 1 | 3 | - | - | 3 | ||||||||||||||||||||||||
Depreciation through income statement | (38 | ) | (12 | ) | (2 | ) | (52 | ) | ||||||||||||||||||||||||
Depreciation through income statement | ||||||||||||||||||||||||||||||||
Depreciation through income statement | ||||||||||||||||||||||||||||||||
Depreciation through income statement | (29 | ) | (10 | ) | (1 | ) | (41 | ) | ||||||||||||||||||||||||
Transfers to disposal groups | ||||||||||||||||||||||||||||||||
Transfers to disposal groups | ||||||||||||||||||||||||||||||||
Transfers to disposal groups | ||||||||||||||||||||||||||||||||
Transfers to disposal groups | (28 | ) | - | - | (28 | ) | ||||||||||||||||||||||||||
Net exchange differences | (12 | ) | (2 | ) | - | (13 | ) | |||||||||||||||||||||||||
Net exchange differences | ||||||||||||||||||||||||||||||||
Net exchange differences | ||||||||||||||||||||||||||||||||
Net exchange differences | (2 | ) | 1 | - | (2 | ) | ||||||||||||||||||||||||||
At December 31, 2020 | 193 | 15 | 3 | 211 | ||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Other | 2 | - | - | 2 | ||||||||||||||||||||||||||||
On December 31, 2022 | ||||||||||||||||||||||||||||||||
On December 31, 2022 | ||||||||||||||||||||||||||||||||
On December 31, 2022 | ||||||||||||||||||||||||||||||||
On December 31, 2022 | 143 | 14 | 1 | 158 | ||||||||||||||||||||||||||||
Gross carrying value | 262 | 37 | 7 | 306 | ||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||
Gross carrying value | 256 | 35 | 4 | 295 | ||||||||||||||||||||||||||||
Accumulated depreciation and impairment losses | (69 | ) | (22 | ) | (4 | ) | (95 | ) | ||||||||||||||||||||||||
Net book value 2020 | 193 | 15 | 3 | 211 | ||||||||||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||||||
Accumulated depreciation | (113 | ) | (21 | ) | (3 | ) | (138 | ) | ||||||||||||||||||||||||
Net book value 2022 | ||||||||||||||||||||||||||||||||
Net book value 2022 | ||||||||||||||||||||||||||||||||
Net book value 2022 | ||||||||||||||||||||||||||||||||
Net book value 2022 | 143 | 14 | 1 | 158 |
Annual Report on Form 20-F 2023 | 251 |
![]() | ||||
Goodwill | VOBA | Future servicing rights | Software | Other | Total | Goodwill | Future servicing rights | Software | Other | Total | ||||||||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||||||||||||||
At January 1, 2021 | 375 | 815 | 71 | 79 | 45 | 1,386 | ||||||||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 | 316 | 59 | 21 | 25 | 420 | |||||||||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||||||||||||||
Additions | - | - | - | 25 | 3 | 29 | - | 122 | 41 | 3 | 166 | |||||||||||||||||||||||||||||||||
Amortization through income statement | - | (163 | ) | (8 | ) | (20 | ) | (4 | ) | (194 | ) | |||||||||||||||||||||||||||||||||
Amortization through income statement | ||||||||||||||||||||||||||||||||||||||||||||
Amortization through income statement | ||||||||||||||||||||||||||||||||||||||||||||
Amortization through income statement | - | (11 | ) | (8 | ) | (2 | ) | (21 | ) | |||||||||||||||||||||||||||||||||||
Impairment losses | - | - | - | (7 | ) | (1 | ) | (8 | ) | |||||||||||||||||||||||||||||||||||
Shadow accounting adjustments | - | 41 | - | - | - | 41 | ||||||||||||||||||||||||||||||||||||||
Capital expenditure | - | - | - | 14 | - | 14 | ||||||||||||||||||||||||||||||||||||||
Business combinations, disposals and other changes | ||||||||||||||||||||||||||||||||||||||||||||
Business combinations, disposals and other changes | ||||||||||||||||||||||||||||||||||||||||||||
Business combinations, disposals and other changes | ||||||||||||||||||||||||||||||||||||||||||||
Business combinations, disposals and other changes | - | - | - | (7 | ) | 1 | (6 | ) | (18 | ) | (38 | ) | (5 | ) | 8 | (54 | ) | |||||||||||||||||||||||||||
Net exchange differences | 16 | 57 | 1 | (1 | ) | (1 | ) | 72 | ||||||||||||||||||||||||||||||||||||
At December 31, 2021 | 391 | 750 | 65 | 83 | 44 | 1,333 | ||||||||||||||||||||||||||||||||||||||
Net exchange differences | ||||||||||||||||||||||||||||||||||||||||||||
Net exchange differences | ||||||||||||||||||||||||||||||||||||||||||||
Net exchange differences | (6 | ) | - | - | - | (7 | ) | |||||||||||||||||||||||||||||||||||||
On December 31, 2023 | 291 | 131 | 48 | 33 | 504 | |||||||||||||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||||||||||||||
Gross carrying value | 561 | 6,923 | 350 | 408 | 185 | 8,427 | 411 | 298 | 71 | 56 | 835 | |||||||||||||||||||||||||||||||||
Accumulated amortization, depreciation and impairment losses | (169 | ) | (6,174 | ) | (285 | ) | (325 | ) | (141 | ) | (7,094 | ) | ||||||||||||||||||||||||||||||||
Net book value 2021 | 391 | 750 | 65 | 83 | 44 | 1,333 | ||||||||||||||||||||||||||||||||||||||
Accumulated amortization, depreciation and impairment losses | ||||||||||||||||||||||||||||||||||||||||||||
Accumulated amortization, depreciation and impairment losses | ||||||||||||||||||||||||||||||||||||||||||||
Accumulated amortization, depreciation and impairment losses | (120 | ) | (166 | ) | (23 | ) | (23 | ) | (331 | ) | ||||||||||||||||||||||||||||||||||
Net book value 2023 | 291 | 131 | 48 | 33 | 504 | |||||||||||||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||||||||||||||
At January 1, 2020 | 392 | 952 | 84 | 69 | 61 | 1,559 | ||||||||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
On January 1, 2022 | 391 | 68 | 83 | 43 | 585 | |||||||||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||||||||||||||
Additions | - | - | - | 33 | 11 | 44 | - | - | 20 | 6 | 26 | |||||||||||||||||||||||||||||||||
Amortization through income statement | - | (79 | ) | (7 | ) | (18 | ) | (7 | ) | (112 | ) | |||||||||||||||||||||||||||||||||
Amortization through income statement | ||||||||||||||||||||||||||||||||||||||||||||
Amortization through income statement | ||||||||||||||||||||||||||||||||||||||||||||
Amortization through income statement | - | (9 | ) | (16 | ) | (5 | ) | (30 | ) | |||||||||||||||||||||||||||||||||||
Impairment losses | - | - | - | (6 | ) | (17 | ) | (23 | ) | |||||||||||||||||||||||||||||||||||
Shadow accounting adjustments | - | 15 | - | - | - | 15 | ||||||||||||||||||||||||||||||||||||||
Capital expenditure | - | - | - | 11 | - | 11 | ||||||||||||||||||||||||||||||||||||||
Business combinations, disposals and other changes | ||||||||||||||||||||||||||||||||||||||||||||
Business combinations, disposals and other changes | ||||||||||||||||||||||||||||||||||||||||||||
Business combinations, disposals and other changes | ||||||||||||||||||||||||||||||||||||||||||||
Business combinations, disposals and other changes | 8 | - | - | (10 | ) | 0 | (2 | ) | 11 | (1 | ) | (27 | ) | 12 | (5 | ) | ||||||||||||||||||||||||||||
Net exchange differences | (25 | ) | (73 | ) | (5 | ) | - | (2 | ) | (105 | ) | |||||||||||||||||||||||||||||||||
At December 31, 2020 | 375 | 815 | 71 | 79 | 45 | 1,386 | ||||||||||||||||||||||||||||||||||||||
Net exchange differences | ||||||||||||||||||||||||||||||||||||||||||||
Net exchange differences | ||||||||||||||||||||||||||||||||||||||||||||
Net exchange differences | 10 | 1 | (2 | ) | - | 9 | ||||||||||||||||||||||||||||||||||||||
Transfers to disposal groups | ||||||||||||||||||||||||||||||||||||||||||||
Transfers to disposal groups | ||||||||||||||||||||||||||||||||||||||||||||
Transfers to disposal groups | ||||||||||||||||||||||||||||||||||||||||||||
Transfers to disposal groups | (97 | ) | - | (37 | ) | (32 | ) | (165 | ) | |||||||||||||||||||||||||||||||||||
On December 31, 2022 | 316 | 59 | 21 | 25 | 420 | |||||||||||||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||||||||||||||
Gross carrying value | ||||||||||||||||||||||||||||||||||||||||||||
Gross carrying value | 537 | 6,447 | 339 | 379 | 174 | 7,875 | 487 | 344 | 85 | 46 | 963 | |||||||||||||||||||||||||||||||||
Accumulated amortization, depreciation and impairment losses | (161 | ) | (5,632 | ) | (268 | ) | (300 | ) | (129 | ) | (6,489 | ) | ||||||||||||||||||||||||||||||||
Net book value 2020 | 375 | 815 | 71 | 79 | 45 | 1,386 | ||||||||||||||||||||||||||||||||||||||
Accumulated amortization, depreciation and impairment losses | ||||||||||||||||||||||||||||||||||||||||||||
Accumulated amortization, depreciation and impairment losses | ||||||||||||||||||||||||||||||||||||||||||||
Accumulated amortization, depreciation and impairment losses | (171 | ) | (286 | ) | (64 | ) | (21 | ) | (543 | ) | ||||||||||||||||||||||||||||||||||
Net book value 2022 | 316 | 59 | 21 | 25 | 420 |
![]() |
Goodwill | 2021 | 2020 | ||||||||||||||
2023 | 2022 | |||||||||||||||
Americas | 181 | 168 | ||||||||||||||
Americas | ||||||||||||||||
Americas | ||||||||||||||||
Americas | 201 | 208 | ||||||||||||||
The Netherlands | 97 | 97 | ||||||||||||||
United Kingdom | ||||||||||||||||
United Kingdom | ||||||||||||||||
United Kingdom | ||||||||||||||||
United Kingdom | 57 | 54 | 56 | 54 | ||||||||||||
International | 23 | 26 | ||||||||||||||
International | ||||||||||||||||
International | ||||||||||||||||
International | - | 18 | ||||||||||||||
Asset Management | 33 | 31 | ||||||||||||||
Asset Management | ||||||||||||||||
Asset Management | ||||||||||||||||
Asset Management | 34 | 35 | ||||||||||||||
At December 31 | 391 | 375 | ||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | 291 | 316 |
Notes to the consolidated financial statements Note 25 | ||||
Note | 2021 | 2020 | 2019 | Note | 2023 | 2022 | ||||||||||||||||||||||
Share capital – par value | 30.1 | 321 | 320 | 323 | ||||||||||||||||||||||||
Share capital – par value | ||||||||||||||||||||||||||||
Share capital – par value | ||||||||||||||||||||||||||||
Share capital – par value | 25.1 | 265 | 319 | |||||||||||||||||||||||||
Share premium | ||||||||||||||||||||||||||||
Share premium | ||||||||||||||||||||||||||||
Share premium | ||||||||||||||||||||||||||||
Share premium | 30.2 | 7,033 | 7,160 | 7,213 | 25.2 | 6,853 | 6,853 | |||||||||||||||||||||
Total share capital | 7,354 | 7,480 | 7,536 | |||||||||||||||||||||||||
Total share capital | ||||||||||||||||||||||||||||
Total share capital | ||||||||||||||||||||||||||||
Total share capital | 7,118 | 7,172 | ||||||||||||||||||||||||||
Retained earnings | ||||||||||||||||||||||||||||
Retained earnings | ||||||||||||||||||||||||||||
Retained earnings | ||||||||||||||||||||||||||||
Retained earnings | 12,166 | 10,327 | 10,655 | 5,099 | 7,770 | |||||||||||||||||||||||
Treasury shares | 30.3 | (273 | ) | (181 | ) | (281 | ) | |||||||||||||||||||||
Treasury shares | ||||||||||||||||||||||||||||
Treasury shares | ||||||||||||||||||||||||||||
Treasury shares | 25.3 | (346 | ) | (668 | ) | |||||||||||||||||||||||
Total retained earnings | 11,892 | 10,145 | 10,374 | |||||||||||||||||||||||||
Total retained earnings | ||||||||||||||||||||||||||||
Total retained earnings | ||||||||||||||||||||||||||||
Total retained earnings | 4,753 | 7,103 | ||||||||||||||||||||||||||
Revaluation reserves | 30.4 | 6,442 | 7,480 | 5,873 | ||||||||||||||||||||||||
Revaluation reserves 1) | ||||||||||||||||||||||||||||
Revaluation reserves 1) | ||||||||||||||||||||||||||||
Revaluation reserves 1) | ||||||||||||||||||||||||||||
Revaluation reserves 1) | 25.4 | (3,770 | ) | (4,563 | ) | |||||||||||||||||||||||
Remeasurement of defined benefit plans | 30.5 | (2,199 | ) | (2,534 | ) | (2,397 | ) | |||||||||||||||||||||
Remeasurement of defined benefit plans 2) | ||||||||||||||||||||||||||||
Remeasurement of defined benefit plans 2) | ||||||||||||||||||||||||||||
Remeasurement of defined benefit plans 2) | ||||||||||||||||||||||||||||
Remeasurement of defined benefit plans 2) | 25.5 | (1,006 | ) | (1,565 | ) | |||||||||||||||||||||||
Other reserves | 30.6 | 325 | (553 | ) | 456 | |||||||||||||||||||||||
Other reserves 3) | ||||||||||||||||||||||||||||
Other reserves 3) | ||||||||||||||||||||||||||||
Other reserves 3) | ||||||||||||||||||||||||||||
Other reserves 3) | 25.6 | 379 | 669 | |||||||||||||||||||||||||
Total shareholders’ equity | 23,813 | 22,018 | 21,842 | |||||||||||||||||||||||||
Total shareholders’ equity | ||||||||||||||||||||||||||||
Total shareholders’ equity | ||||||||||||||||||||||||||||
Total shareholders’ equity | 7,475 | 8,815 |
1 | Included in the 2022 Revaluation reserves is an amount of EUR (31) million relating to Aegon the Netherlands classification as discontinued operations, refer to note 45 Held for sale and discontinued operations |
2 | Included in the 2022 Remeasurement of defined benefit plans is an amount of EUR (675) million relating to Aegon the Netherlands classification as discontinued operations, refer to note 45 Held for sale and discontinued operations |
3 | Included in the 2022 Other reserves is an amount of EUR 15 million relating to Aegon the Netherlands classification as discontinued operations, refer to note 45 Held for sale and discontinued operations |
Annual Report on Form 20-F 2023 | 253 |
![]() | ||||
2021 | 2020 | 2019 | ||||||||||
Share capital transactions relating to common shares | Number of shares (thousands) | Number of shares (thousands) | Number of shares (thousands) | |||||||||
Transactions in 2021: | ||||||||||||
Final dividend 2020 1) | (15,274 | ) | ||||||||||
Share buyback program (final dividend 2020) | 19,452 | |||||||||||
Interim dividend 2021 1) | (17,314 | ) | ||||||||||
Share buyback program (interim dividend 2021) | 21,532 | |||||||||||
Transactions in 2020: | ||||||||||||
Interim dividend 2020 1) | (22,947 | ) | ||||||||||
Share buyback program (interim dividend 2020) | 24,029 | |||||||||||
Transactions in 2019: | ||||||||||||
Final dividend 2018 1) | (32,874 | ) | ||||||||||
Share buyback program (final dividend 2018) | 32,874 | |||||||||||
Interim dividend 2019 1) | (35,370 | ) | ||||||||||
Share buyback program (interim dividend 2019) | 43,150 | |||||||||||
2023 | 2022 | |||||||
Share capital transactions relating to common shares | Number of shares (thousands) | Number of shares (thousands) | ||||||
Transactions in 2023: | ||||||||
Cancellation of shares | (451,140 | ) | ||||||
Transactions in 2022: | ||||||||
Final dividend 2021 1) | (18,676 | ) | ||||||
Share buyback program (final dividend 2021) | 24,364 | |||||||
Interim dividend 2022 1) | (21,365 | ) | ||||||
Share buyback program (interim dividend 2022) | 29,833 |
1 | Dividend distribution paid from treasury shares (note |
2023 | 2022 | |||||||
Common shares | 218 | 253 | ||||||
Common shares B | 47 | 66 | ||||||
On December 31 | 265 | 319 |
Common shares | 2023 | 2022 | ||||||
Authorized share capital | 480 | 720 | ||||||
Number of authorized shares (in million) | 4,000 | 6,000 | ||||||
Par value in cents per share | 12 | 12 |
Common shares B | 2023 | 2022 | ||||||
Authorized share capital | 240 | 360 | ||||||
Number of authorized shares (in million) | 2,000 | 3,000 | ||||||
Par value in cents per share | 12 | 12 |
Common shares | Common shares B | |||||||||||||||
Number of shares (thousands) | Total amount | Number of shares (thousands) | Total amount | |||||||||||||
On December 31, 2021 | 2,106,313 | 253 | 568,839 | 68 | ||||||||||||
Shares withdrawn | (10,665 | ) | (1 | ) | (22,643 | ) | (3 | ) | ||||||||
Dividend | 13,782 | 2 | - | - | ||||||||||||
On December 31, 2022 | 2,109,430 | 253 | 546,196 | 66 | ||||||||||||
Shares withdrawn | (294,703 | ) | (35 | ) | (156,437 | ) | (19 | ) | ||||||||
Dividend | - | - | - | - | ||||||||||||
On December 31, 2023 | 1,814,727 | 218 | 389,759 | 47 |
2021 | 2020 | 2019 | ||||||||||
Common shares | 253 | 252 | 253 | |||||||||
Common shares B | 68 | 69 | 70 | |||||||||
At December 31 | 321 | 320 | 323 | |||||||||
Common shares | 2021 | 2020 | 2019 | |||||||||
Authorized share capital | 720 | 720 | 720 | |||||||||
Number of authorized shares (in million) | 6,000 | 6,000 | 6,000 | |||||||||
Par value in cents per share | 12 | 12 | 12 | |||||||||
Common shares B | 2021 | 2020 | 2019 | |||||||||
Authorized share capital | 360 | 360 | 360 | |||||||||
Number of authorized shares (in million) | 3,000 | 3,000 | 3,000 | |||||||||
Par value in cents per share | 12 | 12 | 12 |
Common shares | Common shares B | |||||||||||||||
Number of shares (thousands) | Total amount | Number of shares (thousands) | Total amount | |||||||||||||
At January 1, 2019 | 2,095,648 | 251 | 585,022 | 70 | ||||||||||||
Dividend | 0 | 0 | - | - | ||||||||||||
At December 31, 2019 | 2,105,139 | 253 | 585,022 | 70 | ||||||||||||
Shares withdrawn | (9,491 | ) | (1 | ) | (13,227 | ) | (2 | ) | ||||||||
Dividend | 2,466 | 0 | - | - | ||||||||||||
At December 31, 2020 | 2,098,114 | 252 | 571,795 | 69 | ||||||||||||
Shares withdrawn | (2,466 | ) | (0 | ) | (2,956 | ) | (0 | ) | ||||||||
Dividend | 10,665 | 1 | 0 | 0 | ||||||||||||
At December 31, 2021 | 2,106,313 | 253 | 568,839 | 68 |
![]() |
Notes to the consolidated financial statements Note 25 | ||||
Weighted average number of common shares (thousands) | Weighted average number of common shares B (thousands) | |||||||
2019 | 2,098,326 | 585,022 | ||||||
2020 | 2,101,749 | 579,312 | ||||||
2021 | 2,101,231 | 570,629 |
Weighted average number of common shares (thousands) | Weighted average number of common shares B (thousands) | |||||||
2022 | 2,107,315 | 559,906 | ||||||
2023 | 2,067,119 | 523,149 |
2021 | 2020 | 2019 | ||||||||||||||||||
At January 1 | 7,160 | 7,213 | 7,487 | |||||||||||||||||
2023 | 2022 | |||||||||||||||||||
On January 1 | ||||||||||||||||||||
On January 1 | ||||||||||||||||||||
On January 1 | ||||||||||||||||||||
On January 1 | 6,853 | 7,033 | ||||||||||||||||||
Share dividend | (127 | ) | (54 | ) | (273 | ) | ||||||||||||||
At December 31 | 7,033 | 7,160 | 7,213 | |||||||||||||||||
Share dividend | ||||||||||||||||||||
Share dividend | ||||||||||||||||||||
Share dividend | - | (180 | ) | |||||||||||||||||
On December 31 | ||||||||||||||||||||
On December 31 | ||||||||||||||||||||
On December 31 | ||||||||||||||||||||
On December 31 | 6,853 | 6,853 | ||||||||||||||||||
Share premium relating to: | ||||||||||||||||||||
Share premium relating to: | ||||||||||||||||||||
Share premium relating to: | ||||||||||||||||||||
Share premium relating to: | ||||||||||||||||||||
- Common shares | 5,380 | 5,507 | 5,560 | |||||||||||||||||
- Common shares | ||||||||||||||||||||
- Common shares | ||||||||||||||||||||
- Common shares | 5,200 | 5,200 | ||||||||||||||||||
- Common shares B | ||||||||||||||||||||
- Common shares B | ||||||||||||||||||||
- Common shares B | ||||||||||||||||||||
- Common shares B | 1,653 | 1,653 | 1,653 | 1,653 | 1,653 | |||||||||||||||
Total share premium | 7,033 | 7,160 | 7,213 | |||||||||||||||||
Total share premium | ||||||||||||||||||||
Total share premium | ||||||||||||||||||||
Total share premium | 6,853 | 6,853 |
![]() |
Annual Report on Form 20-F 2023 | 255 |
![]() | About Aegon Governance and risk management Financial information | |||
2021 | 2020 | 2019 | ||||||||||||||||||||||
Number of shares (thousands) | Amount | Number of shares (thousands) | Amount | Number of shares (thousands) | Amount | |||||||||||||||||||
At January 1 | 52,686 | 171 | 65,540 | 269 | 61,418 | 326 | ||||||||||||||||||
Transactions in 2021: | ||||||||||||||||||||||||
Sale: transactions, average price 3.90 | (4,139 | ) | (16 | ) | ||||||||||||||||||||
Shares withdrawn: 1 transaction average price 3.89 | (2,466 | ) | (10 | ) | ||||||||||||||||||||
Sale: 1 transaction, average price 3.89 | (15,274 | ) | (59 | ) | ||||||||||||||||||||
Purchase: 1 transaction average price 3.70 | 35,933 | 133 | ||||||||||||||||||||||
Sale: 1 transaction, average price 3.02 | (17,314 | ) | (52 | ) | ||||||||||||||||||||
Purchase: 1 transaction average price 4.46 | 21,532 | 96 | ||||||||||||||||||||||
Transactions in 2020: | ||||||||||||||||||||||||
Sale: transactions, average price 4.52 | (4,445 | ) | (20 | ) | ||||||||||||||||||||
Shares withdrawn: 1 transaction average price 4.52 | (9,491 | ) | (43 | ) | ||||||||||||||||||||
Sale: 1 transaction, average price 4.13 | (22,947 | ) | (95 | ) | ||||||||||||||||||||
Purchase: 1 transaction average price 2.46 | 24,029 | 59 | ||||||||||||||||||||||
Transactions in 2019: | ||||||||||||||||||||||||
Sale: transactions, average price 5.10 | (3,657 | ) | (19 | ) | ||||||||||||||||||||
Sale: 1 transaction, average price 5.25 | (32,874 | ) | (173 | ) | ||||||||||||||||||||
Purchase: 1 transaction average price 4.52 | 32,874 | 149 | ||||||||||||||||||||||
Sale: 1 transaction, average price 5.16 | (35,370 | ) | (183 | ) | ||||||||||||||||||||
Purchase: 1 transaction average price 3.89 | 43,150 | 168 | ||||||||||||||||||||||
At December 31 | 70,958 | 262 | 52,686 | 171 | 65,540 | 269 |
2023 | 2022 | |||||||||||||||
Number of shares (thousands) | Amount | Number of shares (thousands) | Amount | |||||||||||||
On January 1 | 145,821 | 662 | 70,958 | 262 | ||||||||||||
Transactions in 2023: | ||||||||||||||||
Purchase: 1 transaction, average price EUR 5.00 | 8,516 | 43 | ||||||||||||||
Sale: 2 transactions, average price EUR 4.46 | (4,924 | ) | (22 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 4.27 | 46,798 | 200 | ||||||||||||||
Sale: 1 transaction, average price EUR 4.46 | (69 | ) | - | |||||||||||||
Share withdrawn: 1 transaction, average price EUR 4.59 | (79,703 | ) | (366 | ) | ||||||||||||
Purchase: 2 transactions, average price EUR 4.77 | 170,881 | 815 | ||||||||||||||
Share Withdrawn: 1 transaction, average price EUR 4.59 | (215,000 | ) | (986 | ) | ||||||||||||
Transactions in 2022: | ||||||||||||||||
Purchase: 1 transaction, average price EUR 4.92 | 10,158 | 50 | ||||||||||||||
Sale: 3 transactions, average price EUR 2.46 | (4,708 | ) | (12 | ) | ||||||||||||
Sale: 1 transaction, average price EUR 3.12 | (18,676 | ) | (58 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 4.38 | 24,364 | 107 | ||||||||||||||
Share withdrawn: 1 transaction, average price EUR 3.70 | (10,665 | ) | (39 | ) | ||||||||||||
Sale: 1 transaction, average price EUR 3.91 | (21,365 | ) | (84 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 4.49 | 29,833 | 134 | ||||||||||||||
Purchase: 3 transactions, average price EUR 4.58 | 65,921 | 302 | ||||||||||||||
On December 31 | 72,320 | 346 | 145,821 | 662 |
2021 | 2020 | 2019 | ||||||||||||||||||||||
Number of shares (thousands) | Amount | Number of shares (thousands) | Amount | Number of shares (thousands) | Amount | |||||||||||||||||||
At January 1 | 12,884 | 1 | 25,310 | 3 | 13,856 | 2 | ||||||||||||||||||
Transactions in 2021: | ||||||||||||||||||||||||
Sale: 1 transaction, average price 0.10 | (1,983 | ) | - | |||||||||||||||||||||
Shares withdrawn: 1 transaction average price 0.10 | (2,956 | ) | - | |||||||||||||||||||||
Purchase: 1 transaction average price 0.10 | 22,643 | 2 | ||||||||||||||||||||||
Transactions in 2020: | ||||||||||||||||||||||||
Sale: 1 transaction, average price 0.13 | (2,154 | ) | - | |||||||||||||||||||||
Shares withdrawn: 1 transaction average price 0.13 | (13,227 | ) | (2 | ) | ||||||||||||||||||||
Purchase: 1 transaction average price 0.08 | 2,956 | - | ||||||||||||||||||||||
Transactions in 2019: | ||||||||||||||||||||||||
Sale: 1 transaction, average price 0.12 | (1,774 | ) | - | |||||||||||||||||||||
Purchase: 1 transaction average price 0.10 | 13,227 | 1 | ||||||||||||||||||||||
At December 31 | 30,589 | 3 | 12,884 | 1 | 25,310 | 3 |
2023 | 2022 | |||||||||||||||
Number of shares (thousands) | Amount | Number of shares (thousands) | Amount | |||||||||||||
On January 1 | 51,763 | 6 | 30,589 | 3 | ||||||||||||
Transactions in 2023: | ||||||||||||||||
Share withdrawn: 1 transaction, average price EUR 0.11 | (43,817 | ) | (5 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 0.13 | 112,619 | 15 | ||||||||||||||
Share withdrawn: 1 transaction, average price EUR 0.13 | (112,619 | ) | (15 | ) | ||||||||||||
Transactions in 2022: | ||||||||||||||||
Share withdrawn: 1 transaction, average price EUR 0.10 | (22,643 | ) | (2 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 0.12 | 43,817 | 5 | ||||||||||||||
On December 31 | 7,945 | 1 | 51,763 | 6 |
Weighted average number of treasury shares, including treasury shares held by subsidiaries (thousands) | | Weighted average number of treasury shares B (thousands) | ||||||
2022 | 97,807 | 23,696 | ||||||
2023 | 188,403 | 33,035 |
![]() | Notes to the consolidated financial statements Note | |||
2021 | 2020 | 2019 | ||||||||||||||||||||||
Number of shares (thousands) | Total amount | Number of shares (thousands) | Total amount | Number of shares (thousands) | Total amount | |||||||||||||||||||
Common shares | ||||||||||||||||||||||||
Held by Aegon N.V. | 70,958 | 262 | 52,686 | 171 | 65,540 | 269 | ||||||||||||||||||
Held by subsidiaries | 822 | 8 | 1,062 | 9 | 1,043 | 9 | ||||||||||||||||||
Common shares B | ||||||||||||||||||||||||
Held by Aegon N.V. | 30,589 | 3 | 12,884 | 1 | 25,310 | 3 | ||||||||||||||||||
At December 31 | 102,369 | 273 | 66,632 | 181 | 91,893 | 281 |
Weighted average number of treasury shares, including treasury shares held by subsidiaries (thousands) | Weighted average number of treasury shares B (thousands) | |||||||
2019 | 56,467 | 13,070 | ||||||
2020 | 58,224 | 18,386 | ||||||
2021 | 57,989 | 11,621 |
Available-for-sale investments | Real estate held for own use | Cash flow hedging reserve | Total | |||||||||||||||||||||||||||||||||||||
At January 1, 2021 | 6,248 | 35 | 1,197 | 7,480 | ||||||||||||||||||||||||||||||||||||
Investments measured at fair value through OCI | | Real estate held for own use | | Cash flow hedging reserve | | Insurance contracts | Reinsurance contracts held | | Total | |||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 | (5,251 | ) | 15 | 1,024 | 2,215 | (2,566 | ) | (4,563 | ) | |||||||||||||||||||||||||||||||
Gross revaluation | (3,930 | ) | (4 | ) | (122 | ) | (4,057 | ) | ||||||||||||||||||||||||||||||||
Gross revaluation | ||||||||||||||||||||||||||||||||||||||||
Gross revaluation | ||||||||||||||||||||||||||||||||||||||||
Gross revaluation | 1,552 | (2 | ) | (62 | ) | (1,626 | ) | 349 | 211 | |||||||||||||||||||||||||||||||
Shadow accounting adjustment | 2,759 | 0 | 0 | 2,759 | ||||||||||||||||||||||||||||||||||||
Net (gains) / losses transferred to income statement | ||||||||||||||||||||||||||||||||||||||||
Net (gains) / losses transferred to income statement | ||||||||||||||||||||||||||||||||||||||||
Net (gains) / losses transferred to income statement | ||||||||||||||||||||||||||||||||||||||||
Net (gains) / losses transferred to income statement | (450 | ) | 0 | (106 | ) | (556 | ) | 706 | - | (130 | ) | - | - | 577 | ||||||||||||||||||||||||||
Foreign currency translation differences | 362 | 1 | 84 | 447 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation differences | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation differences | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation differences | 138 | - | (31 | ) | (47 | ) | 82 | 142 | ||||||||||||||||||||||||||||||||
Tax effect | 322 | 1 | 47 | 370 | ||||||||||||||||||||||||||||||||||||
Tax effect | ||||||||||||||||||||||||||||||||||||||||
Tax effect | ||||||||||||||||||||||||||||||||||||||||
Tax effect | (487 | ) | - | 42 | 397 | (126 | ) | (174 | ) | |||||||||||||||||||||||||||||||
Other | (1 | ) | 0 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | 42 | (3 | ) | - | - | - | 38 | |||||||||||||||||||||||||||||||||
At December 31, 2021 | 5,309 | 32 | 1,100 | 6,442 | ||||||||||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
On December 31, 2023 | (3,300 | ) | 9 | 842 | 939 | (2,261 | ) | (3,770 | ) | |||||||||||||||||||||||||||||||
At January 1, 2020 | 4,352 | 19 | 1,502 | 5,873 | ||||||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2022 | 6,810 | 32 | 1,100 | (11,291 | ) | 768 | (2,580 | ) | ||||||||||||||||||||||||||||||||
Gross revaluation | 5,728 | 20 | (141 | ) | 5,607 | |||||||||||||||||||||||||||||||||||
Gross revaluation | ||||||||||||||||||||||||||||||||||||||||
Gross revaluation | ||||||||||||||||||||||||||||||||||||||||
Gross revaluation | (16,743 | ) | (1 | ) | (66 | ) | 18,680 | (4,672 | ) | (2,803 | ) | |||||||||||||||||||||||||||||
Shadow accounting adjustment | (2,738 | ) | 0 | 0 | (2,738 | ) | ||||||||||||||||||||||||||||||||||
Net (gains) / losses transferred to income statement | ||||||||||||||||||||||||||||||||||||||||
Net (gains) / losses transferred to income statement | ||||||||||||||||||||||||||||||||||||||||
Net (gains) / losses transferred to income statement | ||||||||||||||||||||||||||||||||||||||||
Net (gains) / losses transferred to income statement | 13 | 0 | (106 | ) | (94 | ) | 541 | - | (126 | ) | - | - | 415 | |||||||||||||||||||||||||||
Foreign currency translation differences | (443 | ) | (2 | ) | (111 | ) | (556 | ) | ||||||||||||||||||||||||||||||||
Tax effect | (664 | ) | (2 | ) | 54 | (612 | ) | |||||||||||||||||||||||||||||||||
At December 31, 2020 | 6,248 | 35 | 1,197 | 7,480 | ||||||||||||||||||||||||||||||||||||
At January 1, 2019 | 1,910 | 46 | 1,479 | 3,435 | ||||||||||||||||||||||||||||||||||||
Gross revaluation | 6,619 | (4 | ) | 89 | 6,705 | |||||||||||||||||||||||||||||||||||
Shadow accounting adjustment | (3,142 | ) | - | - | (3,142 | ) | ||||||||||||||||||||||||||||||||||
Net (gains) / losses transferred to income statement | (412 | ) | - | (97 | ) | (509 | ) | |||||||||||||||||||||||||||||||||
Net (gains) / losses transferred to retained earnings | 0 | (32 | ) | 0 | (32 | ) | ||||||||||||||||||||||||||||||||||
Foreign currency translation differences | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation differences | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation differences | 8 | 1 | 27 | 37 | 588 | - | 74 | (931 | ) | 95 | (174 | ) | ||||||||||||||||||||||||||||
Tax effect | (632 | ) | 8 | 3 | (621 | ) | ||||||||||||||||||||||||||||||||||
Tax effect | ||||||||||||||||||||||||||||||||||||||||
Tax effect | ||||||||||||||||||||||||||||||||||||||||
Tax effect | 3,499 | - | 42 | (4,211 | ) | 1,243 | 574 | |||||||||||||||||||||||||||||||||
At December 31, 2019 | 4,352 | 19 | 1,502 | 5,873 | ||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | ||||||||||||||||||||||||||||||||||||||||
Disposal of group assets | 46 | (16 | ) | - | (31 | ) | - | (2 | ) | |||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
Other | 7 | - | - | - | - | 7 | ||||||||||||||||||||||||||||||||||
On December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
On December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
On December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
On December 31, 2022 | (5,251 | ) | 15 | 1,024 | 2,215 | (2,566 | ) | (4,563 | ) |
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2021 | 2020 | 2019 | 2023 | 2022 | ||||||||||||||||
Shares | 49 | 46 | 25 | |||||||||||||||||
Shares | ||||||||||||||||||||
Shares | ||||||||||||||||||||
Shares | 2 | 2 | ||||||||||||||||||
Debt securities | 5,276 | 6,218 | 4,353 | |||||||||||||||||
Debt securities | ||||||||||||||||||||
Debt securities | ||||||||||||||||||||
Debt securities | (3,297 | ) | (5,249 | ) | ||||||||||||||||
Other | | (15 | ) | | (17 | ) | | (26 | ) | |||||||||||
Money market and other short-term investments | ||||||||||||||||||||
Money market and other short-term investments | ||||||||||||||||||||
Money market and other short-term investments | ||||||||||||||||||||
Money market and other short-term investments | (5 | ) | (5 | ) | ||||||||||||||||
Revaluation reserve for available-for-sale | 5,309 | 6,248 | 4,352 | |||||||||||||||||
Revaluation reserve for investments measured at FVOCI | ||||||||||||||||||||
Revaluation reserve for investments measured at FVOCI | ||||||||||||||||||||
Revaluation reserve for investments measured at FVOCI | ||||||||||||||||||||
Revaluation reserve for investments measured at FVOCI | (3,300 | ) | (5,251 | ) |
2021 | 2020 | 2019 | ||||||||||
At January 1 | (2,534 | ) | (2,397 | ) | (1,850 | ) | ||||||
Remeasurements of defined benefit plans | 501 | (360 | ) | (612 | ) | |||||||
Tax effect | (102 | ) | 140 | 90 | ||||||||
Net exchange differences | | (65 | ) | | 83 | | | (25 | ) | |||
Total remeasurement of defined benefit plans | (2,199 | ) | (2,534 | ) | (2,397 | ) |
Foreign currency translation reserve | Net foreign investment hedging reserve | Equity movements of joint ventures and associates | Total | |||||||||||||
At January 1, 2021 | (402 | ) | (199 | ) | 48 | (553 | ) | |||||||||
Movement in foreign currency translation and net foreign investment hedging reserves | 1,013 | (165 | ) | 0 | 848 | |||||||||||
Disposal of a business | 10 | (2 | ) | - | 8 | |||||||||||
Tax effect | (24 | ) | 27 | - | 3 | |||||||||||
Equity movements of joint ventures | - | - | 25 | 25 | ||||||||||||
Equity movements of associates | | - | | | - | | | (6 | ) | | (6 | ) | ||||
At December 31, 2021 | 596 | (338 | ) | 67 | 325 | |||||||||||
At January 1, 2020 | 799 | (374 | ) | 31 | 456 | |||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves | (1,209 | ) | 195 | - | (1,015 | ) | ||||||||||
Disposal of a business | (5 | ) | 0 | (2 | ) | (7 | ) | |||||||||
Tax effect | 12 | (19 | ) | - | (7 | ) | ||||||||||
Equity movements of joint ventures | - | - | 12 | 12 | ||||||||||||
Equity movements of associates | | - | | | - | | | 7 | | | 7 | | ||||
At December 31, 2020 | (402 | ) | (199 | ) | 48 | (553 | ) | |||||||||
At January 1, 2019 | 499 | (370 | ) | 19 | 149 | |||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves | 311 | (10 | ) | - | 301 | |||||||||||
Disposal of a business | (1 | ) | - | - | (1 | ) | ||||||||||
Tax effect | (10 | ) | 5 | - | (5 | ) | ||||||||||
Equity movements of joint ventures | - | - | 8 | 8 | ||||||||||||
Equity movements of associates | | - | | | - | | | 4 | | | 4 | | ||||
At December 31, 2019 | 799 | (374 | ) | 31 | 456 |
2023 | 2022 | |||||||
On January 1 | (1,565 | ) | (2,199 | ) | ||||
Remeasurements of defined benefit plans | (110 | ) | 904 | |||||
Tax effect | 17 | (250 | ) | |||||
Net exchange differences | 14 | (20 | ) | |||||
Disposal of a business | 638 | - | ||||||
Total remeasurement of defined benefit plans | (1,006 | ) | (1,565 | ) |
Annual Report on Form 20-F 2023 | 257 |
![]() | About Aegon Governance and risk management Financial information | |||
![]() |
Foreign currency translation reserve | Net foreign investment hedging reserve | | Equity movements of joint ventures and associates | | Total | |||||||||||
On January 1, 2023 | 1,108 | (371 | ) | (68 | ) | 669 | ||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves | (290 | ) | 54 | - | (236 | ) | ||||||||||
Disposal of a business | (29 | ) | - | (15 | ) | (45 | ) | |||||||||
Tax effect | 10 | (6 | ) | - | 3 | |||||||||||
Equity movements of joint ventures | - | - | (2 | ) | (2 | ) | ||||||||||
Equity movements of associates | - | - | (9 | ) | (9 | ) | ||||||||||
On December 31, 2023 | 798 | (324 | ) | (95 | ) | 379 | ||||||||||
On January 1, 2022 | 596 | (338 | ) | - | 258 | |||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves | 436 | (116 | ) | (2 | ) | 318 | ||||||||||
Disposal of a business | 104 | 67 | (36 | ) | 135 | |||||||||||
Tax effect | (28 | ) | 16 | - | (12 | ) | ||||||||||
Equity movements of joint ventures | - | - | (33 | ) | (33 | ) | ||||||||||
Equity movements of associates | - | - | 3 | 3 | ||||||||||||
On December 31, 2022 | 1,108 | (371 | ) | (68 | ) | 669 |
Perpetual contingent convertible securities | Junior perpetual capital securities | Perpetual cumulative subordinated bonds | Long Term Incentive Plans 1) | Total | ||||||||||||||||||||
At January 1, 2021 | 500 | 1,564 | 454 | 50 | 2,569 | |||||||||||||||||||
Shares granted | - | - | - | 27 | 27 | |||||||||||||||||||
Shares vested | - | - | - | (21 | ) | (21 | ) | |||||||||||||||||
Securities redeemed | - | (212 | ) | - | - | (212 | ) | |||||||||||||||||
At December 31, 2021 | 500 | 1,352 | 454 | 57 | 2,363 | |||||||||||||||||||
At January 1, 2020 | 500 | 1,564 | 454 | 53 | 2,571 | |||||||||||||||||||
Shares granted | - | - | - | 22 | 22 | |||||||||||||||||||
Shares vested | - | - | - | (25 | ) | (25 | ) | |||||||||||||||||
At December 31, 2020 | 500 | 1,564 | 454 | 50 | 2,569 | |||||||||||||||||||
At January 1, 2019 | - | 2,808 | 454 | 58 | 3,320 | |||||||||||||||||||
Shares granted | - | - | - | 21 | 21 | |||||||||||||||||||
Shares vested | - | - | - | (26 | ) | (26 | ) | |||||||||||||||||
Securities issued | 500 | - | - | - | 500 | |||||||||||||||||||
Securities redeemed | - | (1,244 | ) | - | - | (1,244 | ) | |||||||||||||||||
At December 31, 2019 | 500 | 1,564 | 454 | 53 | 2,571 | |||||||||||||||||||
1 Long Term Incentive Plans include the shares granted to personnel which are not yet vested. |
Perpetual contingent convertible securities | | Junior perpetual capital securities | | Perpetual cumulative subordinated bonds | | Share options and incentive plans 1) | | Total | ||||||||||||
On January 1, 2023 | 500 | 923 | 454 | 66 | 1,943 | |||||||||||||||
Shares granted / Share options cost incurred | - | - | - | 33 | 33 | |||||||||||||||
Shares vested / Share options forfeited | - | - | - | (25 | ) | (25 | ) | |||||||||||||
On December 31, 2023 | 500 | 923 | 454 | 74 | 1,951 | |||||||||||||||
On January 1, 2022 | 500 | 1,352 | 454 | 57 | 2,363 | |||||||||||||||
Shares granted / Share options cost incurred | - | - | - | 32 | 32 | |||||||||||||||
Shares vested / Share options forfeited | - | - | - | (23 | ) | (23 | ) | |||||||||||||
Securities redeemed | - | (429 | ) | - | - | (429 | ) | |||||||||||||
On December 31, 2022 | 500 | 923 | 454 | 66 | 1,943 |
Perpetual contingent convertible securities | Coupon rate | Coupon date | Year of next call | 2021 | 2020 | 2019 | ||||||||||||||||||
EUR 500 million | 5.625% 1) | Semi-annually, April 15 | 2029 | 500 | 500 | 500 | ||||||||||||||||||
At December 31 | 500 | 500 | 500 |
1 | Incentive plans include the shares granted to personnel which are not yet vested. |
Perpetual contingent convertible securities | Coupon rate | Coupon date | Year of next call | 2023 | 2022 | |||||
EUR 500 million | 5.625% 1) | Semi-annually, April 15 | 2029 | 500 | 500 | |||||
On December 31 | 500 | 500 |
1 | The coupon is fixed at 5.625% until the first call date and reset thereafter to a 5 year mid swap plus a margin of 5.207%. |
Notes to the consolidated financial statements Note 27 | ||||
Junior perpetual capital securities | Coupon rate | Coupon date | Year of next call | 2023 | 2022 | |||||||
USD 500 million | floating CMS rate 1) | Quarterly, July 15 | 2024 | 402 | 402 | |||||||
EUR 950 million 3) | floating DSL rate 2) | Quarterly, July 15 | 2024 | 521 | 521 | |||||||
On December 31 | 923 | 923 |
Junior perpetual capital securities | Coupon rate | Coupon date | Year of next call | 2021 | 2020 | 2019 | ||||||||||||
USD 250 million | floating LIBOR rate 1) | Quarterly, December 15 | Called in 2021 | - | 212 | 212 | ||||||||||||
USD 500 million | floating CMS rate 2) | Quarterly, July 15 | 2022 | 402 | 402 | 402 | ||||||||||||
EUR 950 million | floating DSL rate 3) | Quarterly, July 15 | 2022 | 950 | 950 | 950 | ||||||||||||
At December 31 | 1,352 | 1,564 | 1,564 |
1 |
The coupon of the USD 500 million junior perpetual capital securities is reset each quarter based on the 29 basis points and (iii) a credit spread often basis, with a maximum of 8.5%. |
The coupon of the EUR 950 million junior perpetual capital securities is reset each quarter based on the then prevailing ten-year Dutch government bond yield plus a spread often basis points, with a maximum of 8%. |
3 | On April 5, 2022 Aegon completed a tender offer buying back EUR 429 million of perpetual capital securities, part of the EUR 950 million notes issued in 2004. |
Perpetual cumulative subordinated bonds | ||||||||||||||||||||||||||||||||||||
Perpetual cumulative subordinated bonds | Coupon rate | Coupon date | Year of next call | 2021 | 2020 | 2019 | Coupon rate | Coupon date | Year of next call | 2023 | 2022 | |||||||||||||||||||||||||
EUR 114 million | 1.506% 1), 4) | Annually, June 8 | 2025 | 114 | 114 | 114 | ||||||||||||||||||||||||||||||
EUR 114 million | 1.506% 1), 4) | Annually, June 8 | 2025 | 114 | 114 | |||||||||||||||||||||||||||||||
EUR 136 million | ||||||||||||||||||||||||||||||||||||
EUR 136 million | 1.425% 2), 4) | Annually, October 14 | 2028 | 136 | 136 | 136 | 1.425% 2), 4) | Annually, October 14 | 2028 | 136 | 136 | |||||||||||||||||||||||||
EUR 203 million | 0.496% 3), 4) | Annually, March 4 | 2031 | 203 | 203 | 203 | ||||||||||||||||||||||||||||||
EUR 203 million | 0.496% 3), 4) | Annually, March 4 | 2031 | 203 | 203 | |||||||||||||||||||||||||||||||
At December 31 | 454 | 454 | 454 | |||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||||||
On December 31 | 454 | 454 |
1 | The coupon of the EUR 114 million bonds was originally set at 8% until June 8, 2005. Subsequently, the coupon has been reset at 4.156% until June 8, 2015 and 1.506% until June 8, 2025. |
2 | The coupon of the EUR 136 million bonds was originally set at 7.25% until October 14, 2008. Subsequently, the coupon has been reset at 5.185% until October 14, 2018 and 1.425% until October 14, 2028. |
3 | The coupon of the EUR 203 million bonds was originally set at 7.125% until March 4, 2011. Subsequently, the coupon has been reset at 4.26% until March 4, 2021 and 0.496% until March 4, 2031. |
4 | If the bonds are not called on the respective call dates and after consecutive period of ten years, the coupons will be reset at the then prevailing effective yield of ten-year Dutch government securities plus a spread of85 basis points. |
Coupon rate | Coupon date | Issue / Maturity | Year of next call | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||
Fixed to floating subordinated notes | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed to floating subordinated notes | Fixed to floating subordinated notes | Coupon rate | Coupon date | Issue / Maturity | Year of next call | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
EUR 700 million | |||||||||||||||||||||||||||||||||||||||||||||||
EUR 700 million | 4% 2) | Annually, April 25 | 2014/44 | 2024 | 698 | 697 | 4% 2) | Annually, April 25 | 2014/ 44 | 2024 | 700 | 699 | |||||||||||||||||||||||||||||||||||
USD 800 million | 5.5% 3) | Semi-annually, April 11 | 2018/48 | 2028 | 697 | 648 | |||||||||||||||||||||||||||||||||||||||||
USD 800 million | 5.5% 3) | Semi-annually, April 11 | 2018/ 48 | 2028 | 718 | 743 | |||||||||||||||||||||||||||||||||||||||||
Fixed subordinated notes | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed subordinated notes | |||||||||||||||||||||||||||||||||||||||||||||||
USD 925 million 1) | 5.1% | Quarterly, March 15 | 2019/49 | 2024 | 798 | 740 | |||||||||||||||||||||||||||||||||||||||||
USD 925 million 1) | 5.1% | Quarterly, March 15 | 2019/ 49 | 2024 | 826 | 852 | |||||||||||||||||||||||||||||||||||||||||
At December 31 | 2,194 | 2,085 | |||||||||||||||||||||||||||||||||||||||||||||
On December 31 | |||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | 2,244 | 2,295 | |||||||||||||||||||||||||||||||||||||||||||||
Fair value of subordinated borrowings | 2,438 | 2,351 | |||||||||||||||||||||||||||||||||||||||||||||
Fair value of subordinated borrowings | 2,122 | 2,035 |
1 | Issued by a subsidiary of, and guaranteed by Aegon |
2 | The coupon is fixed at 4% until the first call date and floating 335 bps. |
3 | The coupon is fixed at 5.5% until the first call date in 2028 and floating thereafter with a 6 month USD LIBOR (subject to US LIBOR Act) plus a margin of 3.539%. |
![]() |
Annual Report on Form 20-F 2023 | 259 |
![]() | About Aegon Governance and risk management Financial information | |||
Coupon rate | Coupon date | Issue / Maturity | Year of next call | | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Coupon rate | Coupon date | Issue / Maturity | Year of next call | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
USD 225 million 1) | 7.65% | Semi-annually, December 1 | 1996/2026 | n.a. | 82 | 85 | ||||||||||||||||||||||||||||||||||||||||||||||
USD 225 million 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
USD 225 million 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
USD 225 million 1) | 7.65% | Semi-annually, December 1 | 1996/2026 | n.a. | 67 | 72 | ||||||||||||||||||||||||||||||||||||||||||||||
USD 190 million 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
USD 190 million 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
USD 190 million 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
USD 190 million 1) | 7.625% | Semi-annually, November 15 | 1997/2037 | n.a. | 43 | 40 | 7.625% | Semi-annually, November 15 | 1997/2037 | n.a. | 44 | 46 | ||||||||||||||||||||||||||||||||||||||||
At December 31 | 126 | 126 | ||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | 111 | 118 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of trust pass-through securities | Fair value of trust pass-through securities | 139 | 142 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of trust pass-through securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of trust pass-through securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of trust pass-through securities | 125 | 133 |
1 | Issued by a subsidiary of, and guaranteed by Aegon |
2 | n.a. in above table should be read as “not applicable”. |
Insurance contracts | Contracts not measured under the PAA | Contracts measured under the PAA | Total | |||||||||
Portfolios in an asset position | 185 | - | 185 | |||||||||
Portfolios in a liability position | 177,407 | 39 | 177,446 | |||||||||
Net balance, on December 31, 2023 | 177,222 | 39 | 177,262 | |||||||||
Portfolios in an asset position | 36 | - | 36 | |||||||||
Portfolios in a liability position | 175,681 | 439 | 176,120 | |||||||||
Net balance, on December 31, 2022 | 175,645 | 439 | 176,083 |
Reinsurance contracts held | Contracts not measured under the PAA | Contracts measured under the PAA | | Total | ||||||||
Portfolios in an asset position | 16,601 | 7 | 16,608 | |||||||||
Portfolios in a liability position | 608 | - | 608 | |||||||||
On December 31, 2023 | 15,993 | 7 | 16,000 | |||||||||
Portfolios in an asset position | 16,934 | 6 | 16,939 | |||||||||
Portfolios in a liability position | 270 | - | 270 | |||||||||
On December 31, 2022 | 16,664 | 6 | 16,669 |
Notes to the consolidated financial statements Note 29 | ||||
∎ | Tables that analyze movements by type of liabilities and reconciles them to the condensed income statement and the condensed statement of comprehensive income |
∎ | Tables that analyze movements by measurement component |
Remaining coverage | ||||||||||||||||
Insurance contracts not measured under PAA - by type | Excluding loss component | Loss component | Incurred claims | Total | ||||||||||||
Opening assets | 40 | (1 | ) | (2 | ) | 36 | ||||||||||
Opening liabilities | 163,758 | 1,455 | 10,468 | 175,681 | ||||||||||||
Net opening balance, on January 1, 2023 | 163,719 | 1,456 | 10,470 | 175,645 | ||||||||||||
Insurance revenue | (10,195 | ) | - | - | (10,195 | ) | ||||||||||
Incurred claims and other insurance service expenses | - | (186 | ) | 8,593 | 8,407 | |||||||||||
Amortization of insurance acquisition cash flows | 558 | - | - | 558 | ||||||||||||
Losses (and reversal of losses) on onerous contracts | - | 1,084 | - | 1,084 | ||||||||||||
Adjustments to liabilities for incurred claims | - | - | 9 | 9 | ||||||||||||
Insurance service expenses | 558 | 899 | 8,601 | 10,058 | ||||||||||||
Investment components | (4,834 | ) | - | 4,834 | - | |||||||||||
Insurance service result | (14,471 | ) | 898 | 13,436 | (137 | ) | ||||||||||
Insurance finance (income) / expenses (P&L and OCI) | 17,262 | 81 | - | 17,343 | ||||||||||||
Cash flows | (4,892 | ) | (150 | ) | (5,582 | ) | (10,624 | ) | ||||||||
Contracts disposed during the period | (347 | ) | - | - | (347 | ) | ||||||||||
Transfers to disposal groups | (1 | ) | (211 | ) | (133 | ) | (345 | ) | ||||||||
Other movements | 20 | - | - | 20 | ||||||||||||
Transfer (to)/from other headings | (514 | ) | (33 | ) | 36 | (512 | ) | |||||||||
Net exchange differences | (3,252 | ) | (54 | ) | (515 | ) | (3,821 | ) | ||||||||
Net closing balance, on December 31, 2023 | 157,524 | 1,987 | 17,711 | 177,222 | ||||||||||||
Closing assets | 1,589 | (1,042 | ) | (362 | ) | 185 | ||||||||||
Closing liabilities | 159,113 | 945 | 17,349 | 177,407 |
Annual Report on Form 20-F 2023 | 261 |
![]() | About Aegon Governance and risk management Financial information | |||
Remaining coverage | ||||||||||||||||
Insurance contracts not measured under PAA - by type | Excluding loss component | | Loss component | Incurred claims | Total | |||||||||||
Opening assets | 780 | - | (669 | ) | 110 | |||||||||||
Opening liabilities | 286,352 | 343 | 1,407 | 288,102 | ||||||||||||
Net opening balance, on January 1, 2022 | 285,572 | 343 | 2,076 | 287,991 | ||||||||||||
Insurance revenue | (13,522 | ) | - | - | (13,522 | ) | ||||||||||
Incurred claims and other insurance service expenses | - | (51 | ) | 11,372 | 11,321 | |||||||||||
Amortization of insurance acquisition cash flows | 547 | - | - | 547 | ||||||||||||
Losses (and reversal of losses) on onerous contracts | - | 1,335 | - | 1,335 | ||||||||||||
Adjustments to liabilities for incurred claims | - | - | 8 | 8 | ||||||||||||
Insurance service expenses | 547 | 1,284 | 11,381 | 13,212 | ||||||||||||
Investment components | (4,820 | ) | (50 | ) | 4,870 | - | ||||||||||
Insurance service result | (17,795 | ) | 1,234 | 16,251 | (309 | ) | ||||||||||
Insurance finance (income) / expenses (P&L and OCI) | (57,191 | ) | (49 | ) | - | (57,240 | ) | |||||||||
Cash flows | (4,031 | ) | (33 | ) | (7,866 | ) | (11,930 | ) | ||||||||
Contracts disposed during the period | (278 | ) | - | - | (278 | ) | ||||||||||
Transfers to disposal groups | (51,983 | ) | (54 | ) | - | (52,037 | ) | |||||||||
Other movements | (28 | ) | 33 | - | 5 | |||||||||||
Net exchange differences | 9,453 | (19 | ) | 9 | 9,442 | |||||||||||
Net closing balance, on December 31, 2022 | 163,719 | 1,456 | 10,470 | 175,645 | ||||||||||||
Closing assets | 40 | (1 | ) | (2 | ) | 36 | ||||||||||
Closing liabilities | 163,758 | 1,455 | 10,468 | 175,681 |
Remaining coverage | Liability for incurred claims | |||||||||||||||||||
Insurance contracts PAA - by type | Excluding loss component | | Loss component | Best estimate liability | | Risk adjustment | | Total | ||||||||||||
Opening assets | - | - | - | - | - | |||||||||||||||
Opening liabilities | 404 | 2 | 33 | - | 439 | |||||||||||||||
Net opening balance, on January 1, 2023 | 404 | 2 | 33 | - | 439 | |||||||||||||||
Insurance revenue | (127 | ) | - | - | - | (127 | ) | |||||||||||||
Incurred claims and other insurance service expenses | - | - | 96 | - | 96 | |||||||||||||||
Amortization of insurance acquisition cash flows | 19 | - | - | - | 19 | |||||||||||||||
Losses (and reversals of losses) on onerous contracts | - | 2 | - | - | 2 | |||||||||||||||
Adjustments to liabilities for incurred claims | - | - | 14 | - | 14 | |||||||||||||||
Insurance service expenses | 19 | 2 | 110 | - | 132 | |||||||||||||||
Investment components | - | - | - | - | - | |||||||||||||||
Insurance service result | (108 | ) | 2 | 110 | - | 5 | ||||||||||||||
Insurance finance (income) / expenses (P&L and OCI) | 12 | - | - | - | 12 | |||||||||||||||
Cash flows | 95 | - | (114 | ) | - | (19 | ) | |||||||||||||
Disposal of a business | (407 | ) | - | - | - | (407 | ) | |||||||||||||
Net exchange differences | 9 | - | - | - | 9 | |||||||||||||||
Net closing balance, on December 31, 2023 | 6 | 4 | 29 | - | 39 | |||||||||||||||
Closing assets | - | - | - | - | - | |||||||||||||||
Closing liabilities | 6 | 4 | 29 | - | 39 |
Notes to the consolidated financial statements Note 29 | ||||
Remaining coverage | Liability for incurred claims | |||||||||||||||||||
Insurance contracts PAA - by type | Excluding loss component | | Loss component | | Best estimate liability | | Risk adjustment | | Total | |||||||||||
Opening assets | - | - | - | - | - | |||||||||||||||
Opening liabilities | 1,242 | - | 712 | 10 | 1,964 | |||||||||||||||
Net opening balance, on January 1, 2022 | 1,242 | - | 712 | 10 | 1,964 | |||||||||||||||
Insurance revenue | (563 | ) | - | - | - | (563 | ) | |||||||||||||
Incurred claims and other insurance service expenses | - | - | 254 | - | 253 | |||||||||||||||
Amortization of insurance acquisition cash flows | 22 | - | - | - | 22 | |||||||||||||||
Losses (and reversals of losses) on onerous contracts | - | 2 | - | - | 2 | |||||||||||||||
Adjustments to liabilities for incurred claims | - | - | 259 | (3 | ) | 257 | ||||||||||||||
Insurance service expenses | 22 | 2 | 513 | (3 | ) | 534 | ||||||||||||||
Investment components | - | - | - | - | - | |||||||||||||||
Insurance service result | (542 | ) | 2 | 513 | (3 | ) | (29 | ) | ||||||||||||
Insurance finance (income) / expenses (P&L and OCI) | 7 | - | (110 | ) | - | (103 | ) | |||||||||||||
Cash flows | 515 | - | (470 | ) | - | 45 | ||||||||||||||
Disposal of a business | (729 | ) | - | (75 | ) | - | (804 | ) | ||||||||||||
Transfers to disposal groups | (15 | ) | - | (532 | ) | (7 | ) | (554 | ) | |||||||||||
Net exchange differences | (75 | ) | - | (5 | ) | - | (80 | ) | ||||||||||||
Net closing balance, on December 31, 2022 | 404 | 2 | 33 | - | 439 | |||||||||||||||
Closing assets | - | - | - | - | - | |||||||||||||||
Closing liabilities | 404 | 2 | 33 | - | 439 |
Asset for remaining coverage | ||||||||||||||||
Reinsurance contracts held - Analysis by type, no PAA | Excluding loss recovery component | | Loss recovery component | | Asset for incurred claims | | Total | |||||||||
Opening assets | 14,801 | 1,607 | 526 | 16,934 | ||||||||||||
Opening liabilities | (217 | ) | (57 | ) | 5 | (270 | ) | |||||||||
Net opening balance, on January 1, 2023 | 14,584 | 1,549 | 530 | 16,664 | ||||||||||||
Changes in the statements of P&L and OCI | ||||||||||||||||
Net expenses from reinsurance contracts | 453 | (235 | ) | (38 | ) | 181 | ||||||||||
Other reinsurance finance income / (expenses) | 1,026 | 34 | - | 1,060 | ||||||||||||
Effect of changes in risk of non-performance of reinsurers | (12 | ) | - | - | (12 | ) | ||||||||||
Total changes in the statements of P&L and OCI | 1,467 | (200 | ) | (37 | ) | 1,229 | ||||||||||
Cash flows | (397 | ) | (158 | ) | (425 | ) | (979 | ) | ||||||||
Other movements | (424 | ) | 139 | (86 | ) | (371 | ) | |||||||||
Net exchange differences | (511 | ) | (34 | ) | (4 | ) | (550 | ) | ||||||||
Net closing balance, on 31 December 31, 2023 | 14,719 | 1,296 | (22 | ) | 15,993 | |||||||||||
Closing assets | 16,457 | 349 | (205 | ) | 16,601 | |||||||||||
Closing liabilities | 1,738 | (947 | ) | (183 | ) | 608 |
Annual Report on Form 20-F 2023 | 263 |
![]() | About Aegon Governance and risk management Financial information | |||
Asset for remaining coverage | ||||||||||||||||
Reinsurance contracts held - Analysis by type, no PAA | Excluding loss recovery component | | Loss recovery component | | Asset for incurred claims | | Total | |||||||||
Opening assets | 20,704 | 202 | 383 | 21,288 | ||||||||||||
Opening liabilities | (1,116 | ) | - | 645 | (471 | ) | ||||||||||
Net opening balance, on January 1, 2022 | 19,588 | 202 | 1,028 | 20,818 | ||||||||||||
Changes in the statements of P&L and OCI | ||||||||||||||||
Net expenses from reinsurance contracts | (1,028 | ) | 1,380 | (103 | ) | 248 | ||||||||||
Other reinsurance finance income / (expenses) | (3,956 | ) | 10 | - | (3,945 | ) | ||||||||||
Investment components | (6 | ) | (2 | ) | 8 | - | ||||||||||
Effect of changes in risk of non-performance of reinsurers | 1 | - | - | 1 | ||||||||||||
Total changes in the statements of P&L and OCI | (4,988 | ) | 1,388 | (96 | ) | (3,696 | ) | |||||||||
Cash flows | (1,021 | ) | (12 | ) | (466 | ) | (1,498 | ) | ||||||||
Other movements | (322 | ) | (1 | ) | - | (323 | ) | |||||||||
Net exchange differences | 1,327 | (28 | ) | 64 | 1,363 | |||||||||||
Net closing balance, on 31 December 31, 2022 | 14,584 | 1,549 | 530 | 16,664 | ||||||||||||
Closing assets | 14,801 | 1,607 | 526 | 16,934 | ||||||||||||
Closing liabilities | 217 | 57 | 5 | 270 |
Remaining coverage | ||||||||||||||||
Investment contracts with DPF - by type | Excluding loss component | Loss component | Incurred claims | Total | ||||||||||||
Opening assets | - | - | - | - | ||||||||||||
Opening liabilities | 21,055 | - | - | 21,055 | ||||||||||||
Net balance, on January 1, 2023 | 21,055 | - | - | 21,055 | ||||||||||||
Insurance revenue | (64 | ) | - | - | (64 | ) | ||||||||||
Incurred claims and other insurance service expenses | - | - | 36 | 36 | ||||||||||||
Insurance service expenses | - | - | 36 | 36 | ||||||||||||
Investment components | (2,417 | ) | - | 2,418 | - | |||||||||||
Insurance service result | (2,481 | ) | - | 2,453 | (28 | ) | ||||||||||
Insurance finance (income) / expenses (P&L and OCI) | 1,921 | - | - | 1,921 | ||||||||||||
Cash flows | 423 | - | (2,453 | ) | (2,030 | ) | ||||||||||
Other movements | 172 | - | - | 172 | ||||||||||||
Net exchange differences | 503 | - | - | 503 | ||||||||||||
Net closing balance, on December 31, 2023 | 21,594 | - | - | 21,594 | ||||||||||||
Closing assets | - | - | - | - | ||||||||||||
Closing liabilities | 21,594 | - | - | 21,594 |
Notes to the consolidated financial statements Note 29 | ||||
Remaining coverage | ||||||||||||||||
Investment contracts with DPF - by type | Excluding loss component | | Loss component | Incurred claims | Total | |||||||||||
Opening assets | - | - | - | - | ||||||||||||
Opening liabilities | 27,392 | - | - | 27,392 | ||||||||||||
Net balance, on January 1, 2023 | 27,392 | - | - | 27,392 | ||||||||||||
Insurance revenue | (74 | ) | - | - | (74 | ) | ||||||||||
Incurred claims and other insurance service expenses | - | - | 58 | 58 | ||||||||||||
Losses (and reversal of losses) on onerous contracts | - | (5 | ) | - | (5 | ) | ||||||||||
Insurance service expenses | - | (5 | ) | 58 | 54 | |||||||||||
Investment components | (2,254 | ) | 5 | 2,250 | - | |||||||||||
Insurance service result | (2,328 | ) | - | 2,308 | (20 | ) | ||||||||||
Insurance finance (income) / expenses (P&L and OCI) | (3,247 | ) | - | - | (3,247 | ) | ||||||||||
Cash flows | 511 | - | (2,308 | ) | (1,797 | ) | ||||||||||
Net exchange differences | (1,273 | ) | - | - | (1,273 | ) | ||||||||||
Net closing balance, on December 31, 2023 | 21,055 | - | - | 21,055 | ||||||||||||
Closing assets | - | - | - | - | ||||||||||||
Closing liabilities | 21,055 | - | - | 21,055 |
Annual Report on Form 20-F 2023 | 265 |
![]() | About Aegon Governance and risk management Financial information | |||
Insurance contracts not measured under PAA - by component | Best estimate liability | | Risk adjustment | Contractual service margin | | Total | ||||||||||
Opening assets | 100 | - | (64 | ) | 36 | |||||||||||
Opening liabilities | 163,381 | 3,436 | 8,865 | 175,681 | ||||||||||||
Net opening balance, on January 1, 2023 | 163,280 | 3,435 | 8,929 | 175,645 | ||||||||||||
Changes in estimates that adjust contractual service margin | (204 | ) | 380 | (176 | ) | - | ||||||||||
Changes in estimates that result in (a reversal of) onerous contracts | 974 | 51 | - | 1,025 | ||||||||||||
New contracts issued – non-onerous | (563 | ) | 90 | 473 | - | |||||||||||
New contracts issued – onerous | 38 | 22 | - | 60 | ||||||||||||
Changes that relate to future service | 245 | 542 | 297 | 1,084 | ||||||||||||
Earnings released from contractual service margin | - | - | (952 | ) | (952 | ) | ||||||||||
Release of risk adjustment | - | (345 | ) | - | (345 | ) | ||||||||||
Experience adjustments on current service | 75 | - | - | 75 | ||||||||||||
Revenue recognized for incurred policyholder tax expenses | (15 | ) | - | - | (15 | ) | ||||||||||
Changes that relate to current service | 60 | (345 | ) | (952 | ) | (1,238 | ) | |||||||||
Experience adjustments on claims incurred | 17 | - | - | 17 | ||||||||||||
Changes that relate to past service | 17 | - | - | 17 | ||||||||||||
Insurance service result | 322 | 197 | (656 | ) | (137 | ) | ||||||||||
General model | ||||||||||||||||
Interest accreted to insurance contracts | 2,680 | 195 | 223 | 3,098 | ||||||||||||
Changes in interest rates and other financial assumptions | 1,573 | 14 | - | 1,587 | ||||||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | 425 | (4 | ) | - | 421 | |||||||||||
Variable fee approach | ||||||||||||||||
Change in fair value of the underlying assets of products with direct participating features | 13,730 | - | - | 13,730 | ||||||||||||
Change in fulfilment value of products with direct participating features not recognized in CSM due to risk mitigation option | (1,493 | ) | - | - | (1,493 | ) | ||||||||||
Insurance finance (income) / expenses | 16,915 | 205 | 223 | 17,343 | ||||||||||||
Premiums received | 14,203 | - | - | 14,203 | ||||||||||||
Claims, benefits and expenses paid | (23,862 | ) | - | - | (23,862 | ) | ||||||||||
Acquisition costs paid | (936 | ) | - | - | (936 | ) | ||||||||||
Other | (30 | ) | - | - | (30 | ) | ||||||||||
Cash flows | (10,624 | ) | - | - | (10,624 | ) | ||||||||||
Contracts disposed during the period | (283 | ) | (5 | ) | (59 | ) | (347 | ) | ||||||||
Transfers to disposal groups | (59 | ) | (197 | ) | (89 | ) | (345 | ) | ||||||||
Other | 41 | - | (21 | ) | 20 | |||||||||||
Transfer (to)/from other headings | (511 | ) | (1 | ) | (1 | ) | (512 | ) | ||||||||
Other movements | (811 | ) | (203 | ) | (169 | ) | (1,184 | ) | ||||||||
Net exchange differences | (3,520 | ) | (98 | ) | (203 | ) | (3,821 | ) | ||||||||
Net closing balance, on December 31, 2023 | 165,562 | 3,537 | 8,124 | 177,222 | ||||||||||||
Closing assets | 475 | (286 | ) | (4 | ) | 185 | ||||||||||
Closing liabilities | 166,036 | 3,251 | 8,120 | 177,407 |
Notes to the consolidated financial statements Note 29 | ||||
Insurance contracts not measured under PAA - by component | Best estimate liability | | Risk adjustment | Contractual service margin | | Total | ||||||||||
Opening assets | 1,086 | (510 | ) | (465 | ) | 110 | ||||||||||
Opening liabilities | 271,870 | 4,831 | 11,401 | 288,102 | ||||||||||||
Net opening balance, on January 1, 2022 | 270,784 | 5,341 | 11,866 | 287,991 | ||||||||||||
Changes in estimates that adjust contractual service margin | 909 | (1,232 | ) | 323 | - | |||||||||||
Changes in estimates that result in (a reversal of) onerous contracts | 1,408 | (131 | ) | - | 1,277 | |||||||||||
New contracts issued – non-onerous | (595 | ) | 103 | 493 | - | |||||||||||
New contracts issued – onerous | 27 | 29 | - | 56 | ||||||||||||
Changes that relate to future service | 1,749 | (1,231 | ) | 816 | 1,333 | |||||||||||
Earnings released from contractual service margin | - | - | (1,229 | ) | (1,229 | ) | ||||||||||
Release of risk adjustment | - | (359 | ) | - | (359 | ) | ||||||||||
Experience adjustments on current service | (47 | ) | 1 | - | (46 | ) | ||||||||||
Revenue recognized for incurred policyholder tax expenses | 1 | - | - | 1 | ||||||||||||
Changes that relate to current service | (46 | ) | (359 | ) | (1,229 | ) | (1,634 | ) | ||||||||
Experience adjustments on claims incurred | (7 | ) | - | - | (8 | ) | ||||||||||
Changes that relate to past service | (7 | ) | - | - | (8 | ) | ||||||||||
Insurance service result | 1,695 | (1,591 | ) | (414 | ) | (309 | ) | |||||||||
General model | ||||||||||||||||
Interest accreted to insurance contracts | 2,548 | 156 | 221 | 2,925 | ||||||||||||
Changes in interest rates and other financial assumptions | (28,114 | ) | (58 | ) | - | (28,172 | ) | |||||||||
Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | (862 | ) | 19 | - | (843 | ) | ||||||||||
Variable fee approach | ||||||||||||||||
Change in fair value of the underlying assets of products with direct participating features | (25,351 | ) | - | - | (25,351 | ) | ||||||||||
Change in fulfilment value of products with direct participating features not recognized in CSM due to risk mitigation option | (5,799 | ) | - | - | (5,799 | ) | ||||||||||
Insurance finance (income) / expenses | (57,578 | ) | 117 | 221 | (57,240 | ) | ||||||||||
Premiums received | 15,444 | - | - | 15,444 | ||||||||||||
Claims, benefits and expenses paid | (26,454 | ) | - | - | (26,454 | ) | ||||||||||
Acquisition costs paid | (892 | ) | - | - | (892 | ) | ||||||||||
Other | (28 | ) | - | - | (28 | ) | ||||||||||
Cash flows | (11,930 | ) | - | - | (11,930 | ) | ||||||||||
Contracts disposed during the period | (177 | ) | (5 | ) | (96 | ) | (278 | ) | ||||||||
Transfers to disposal groups | (48,338 | ) | (659 | ) | (3,040 | ) | (52,037 | ) | ||||||||
Other | - | - | 5 | 5 | ||||||||||||
Other movements | (48,515 | ) | (663 | ) | (3,131 | ) | (52,310 | ) | ||||||||
Net exchange differences | 8,825 | 231 | 387 | 9,442 | ||||||||||||
Net closing balance, on December 31, 2022 | 163,280 | 3,435 | 8,929 | 175,645 | ||||||||||||
Closing assets | 100 | - | (64 | ) | 36 | |||||||||||
Closing liabilities | 163,381 | 3,436 | 8,865 | 175,681 |
Annual Report on Form 20-F 2023 | 267 |
![]() | About Aegon Governance and risk management Financial information | |||
Reinsurance contracts held - Movement schedule by component, no PAA | Best estimate liability | | Risk adjustment | Contractual service margin | | Total | ||||||||||
Opening assets | 16,233 | 1,010 | (309 | ) | 16,934 | |||||||||||
Opening liabilities | (371 | ) | (101 | ) | 202 | (270 | ) | |||||||||
Net opening balance, on January 1, 2023 | 15,862 | 909 | (107 | ) | 16,664 | |||||||||||
Changes in estimates that adjust the contractual service margin | (3 | ) | 6 | (4 | ) | - | ||||||||||
Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts | 477 | 67 | 6 | 550 | ||||||||||||
New reinsurance contracts issued / acquired recognized in the year | (330 | ) | 42 | 271 | (17 | ) | ||||||||||
Initial recognition of onerous underlying contracts | - | - | 12 | 12 | ||||||||||||
Changes that relate to future service | 144 | 114 | 286 | 544 | ||||||||||||
CSM recognized for service received | - | - | (26 | ) | (26 | ) | ||||||||||
Release of risk adjustment | - | (118 | ) | - | (118 | ) | ||||||||||
Experience adjustment on current service | (217 | ) | - | - | (217 | ) | ||||||||||
Changes that relate to current service | (217 | ) | (118 | ) | (26 | ) | (361 | ) | ||||||||
Experience adjustment on claims component | (2 | ) | - | - | (2 | ) | ||||||||||
Changes that relate to past service | (2 | ) | - | - | (2 | ) | ||||||||||
Net income/expenses of reinsurance held | (76 | ) | (3 | ) | 260 | 181 | ||||||||||
Reinsurance finance income / (expenses) | 1,013 | 48 | (13 | ) | 1,048 | |||||||||||
Premiums paid, net of received fixed commission | 2,642 | - | - | 2,642 | ||||||||||||
Amounts received | (3,622 | ) | - | - | (3,622 | ) | ||||||||||
Cash flows | (979 | ) | - | - | (979 | ) | ||||||||||
Other movements | (132 | ) | (176 | ) | (63 | ) | (371 | ) | ||||||||
Other movements | (132 | ) | (176 | ) | (63 | ) | (371 | ) | ||||||||
Net exchange difference | (528 | ) | (23 | ) | 2 | (550 | ) | |||||||||
Net closing balance, on December 31, 2023 | 15,160 | 755 | 78 | 15,993 | ||||||||||||
Closing assets | 16,184 | 423 | (7 | ) | 16,601 | |||||||||||
Closing liabilities | (1,024 | ) | 332 | 85 | (608 | ) |
Notes to the consolidated financial statements Note 29 | ||||
Reinsurance contracts held - Movement schedule by component, no PAA | Best estimate liability | | Risk adjustment | Contractual service margin | | Total | ||||||||||
Opening assets | 20,608 | 1,009 | (328 | ) | 21,288 | |||||||||||
Opening liabilities | (1,617 | ) | 585 | 561 | (471 | ) | ||||||||||
Net opening balance, on January 1, 2022 | 18,991 | 1,594 | 233 | 20,818 | ||||||||||||
Changes in estimates that adjust the contractual service margin | 244 | (408 | ) | 164 | - | |||||||||||
Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts | 655 | (58 | ) | 10 | 607 | |||||||||||
New reinsurance contracts issued / acquired recognized in the year | (8 | ) | 21 | (13 | ) | - | ||||||||||
Initial recognition of onerous underlying contracts | - | - | 31 | 31 | ||||||||||||
Changes that relate to future service | 891 | (444 | ) | 192 | 638 | |||||||||||
CSM recognized for service received | - | - | 42 | 42 | ||||||||||||
Release of risk adjustment | - | (147 | ) | - | (147 | ) | ||||||||||
Experience adjustment on current service | (274 | ) | - | - | (274 | ) | ||||||||||
Changes that relate to current service | (274 | ) | (147 | ) | 42 | (379 | ) | |||||||||
Experience adjustment on claims component | (12 | ) | - | - | (12 | ) | ||||||||||
Changes that relate to past service | (12 | ) | - | - | (12 | ) | ||||||||||
Net income/expenses of reinsurance held | 605 | (591 | ) | 234 | 248 | |||||||||||
Reinsurance finance income / (expenses) | (3,954 | ) | 47 | (37 | ) | (3,944 | ) | |||||||||
Premiums paid, net of received fixed commission | 3,005 | - | - | 3,005 | ||||||||||||
Amounts received | (4,503 | ) | - | - | (4,503 | ) | ||||||||||
Cash flows | (1,498 | ) | - | - | (1,498 | ) | ||||||||||
Other movements | 403 | (206 | ) | (520 | ) | (323 | ) | |||||||||
Other movements | 403 | (206 | ) | (520 | ) | (323 | ) | |||||||||
Net exchange difference | 1,316 | 65 | (17 | ) | 1,363 | |||||||||||
Net closing balance, on December 31, 2022 | 15,862 | 909 | (107 | ) | 16,664 | |||||||||||
Closing assets | 16,233 | 1,010 | (309 | ) | 16,934 | |||||||||||
Closing liabilities | (371 | ) | (101 | ) | 202 | (270 | ) |
Annual Report on Form 20-F 2023 | 269 |
![]() | About Aegon Governance and risk management Financial information | |||
Investment contracts with DPF - by component | Best estimate liability | | Risk adjustment | Contractual service margin | | Total | ||||||||||
Opening assets | - | - | - | - | ||||||||||||
Opening liabilities | 20,874 | 109 | 72 | 21,055 | ||||||||||||
Net balance, on January 1, 2023 | 20,874 | 109 | 72 | 21,055 | ||||||||||||
Changes in estimates that adjust contractual service margin | (152 | ) | 31 | 121 | - | |||||||||||
Changes that relate to future service | (152 | ) | 31 | 121 | - | |||||||||||
Earnings released from contractual service margin | - | - | (17 | ) | (17 | ) | ||||||||||
Release of risk adjustment | - | (15 | ) | - | (15 | ) | ||||||||||
Experience adjustments on current service | 4 | - | - | 4 | ||||||||||||
Changes that relate to current service | 4 | (15 | ) | (17 | ) | (28 | ) | |||||||||
Changes that relate to past service | - | - | - | - | ||||||||||||
Insurance service result | (148 | ) | 16 | 104 | (28 | ) | ||||||||||
Variable fee approach | ||||||||||||||||
Change in fair value of the underlying assets of products with direct participating features | 1,921 | - | - | 1,921 | ||||||||||||
Insurance finance (income) / expenses | 1,921 | - | - | 1,921 | ||||||||||||
Premiums received | 475 | - | - | 475 | ||||||||||||
Claims, benefits and expenses paid | (2,506 | ) | - | - | (2,506 | ) | ||||||||||
Cash flows | (2,030 | ) | - | - | (2,030 | ) | ||||||||||
Other | 170 | - | 1 | 172 | ||||||||||||
Other movements | 170 | - | 1 | 172 | ||||||||||||
Net exchange differences | 498 | 3 | 2 | 503 | ||||||||||||
Net closing balance, on December 31, 2023 | 21,285 | 128 | 180 | 21,594 | ||||||||||||
Closing assets | - | - | - | - | ||||||||||||
Closing liabilities | 21,285 | 128 | 180 | 21,594 |
Notes to the consolidated financial statements Note 29 | ||||
Investment contracts with DPF - by component | Best estimate liability | | Risk adjustment | Contractual service margin | | Total | ||||||||||
Opening assets | - | - | - | - | ||||||||||||
Opening liabilities | 27,064 | 133 | 195 | 27,392 | ||||||||||||
Net balance, on January 1, 2022 | 27,064 | 133 | 195 | 27,392 | ||||||||||||
Changes in estimates that adjust contractual service margin | 110 | (3 | ) | (106 | ) | - | ||||||||||
Changes that relate to future service | 110 | (3 | ) | (106 | ) | - | ||||||||||
Earnings released from contractual service margin | - | - | (11 | ) | (11 | ) | ||||||||||
Release of risk adjustment | - | (14 | ) | - | (14 | ) | ||||||||||
Experience adjustments on current service | 5 | - | - | 5 | ||||||||||||
Changes that relate to current service | 5 | (14 | ) | (11 | ) | (20 | ) | |||||||||
Changes that relate to past service | - | - | - | - | ||||||||||||
Insurance service result | 114 | (17 | ) | (117 | ) | (20 | ) | |||||||||
Variable fee approach | ||||||||||||||||
Change in fair value of the underlying assets of products with direct participating features | (3,247 | ) | - | - | (3,247 | ) | ||||||||||
Insurance finance (income) / expenses | (3,247 | ) | - | - | (3,247 | ) | ||||||||||
Premiums received | 511 | - | - | 511 | ||||||||||||
Claims, benefits and expenses paid | (2,308 | ) | - | - | (2,308 | ) | ||||||||||
Cash flows | (1,797 | ) | - | - | (1,797 | ) | ||||||||||
Net exchange differences | (1,261 | ) | (6 | ) | (6 | ) | (1,273 | ) | ||||||||
Net closing balance, on December 31, 2022 | 20,874 | 109 | 72 | 21,055 | ||||||||||||
Closing assets | - | - | - | - | ||||||||||||
Closing liabilities | 20,874 | 109 | 72 | 21,055 |
2023 | ||||||||||||
New contracts recognized | Issued non-onerous contracts | | Issued onerous contracts | | Total | |||||||
Present value of cash inflows | (5,155 | ) | (545 | ) | (5,701 | ) | ||||||
Present value of cash outflows, excl. acquisition costs | 4,593 | 583 | 5,176 | |||||||||
Risk adjustment for non-financial risk | 90 | 22 | 112 | |||||||||
Contractual service margin | 473 | - | 473 | |||||||||
(Gain) / loss recognized on initial recognition | - | 60 | 60 |
2022 | ||||||||||||
New contracts recognized | Issued non-onerous contracts | | Issued onerous contracts | | Total | |||||||
Present value of cash inflows | (5,020 | ) | (475 | ) | (5,494 | ) | ||||||
Present value of cash outflows, excl. acquisition costs | 4,447 | 504 | 4,951 | |||||||||
Risk adjustment for non-financial risk | 98 | 27 | 125 | |||||||||
Contractual service margin | 474 | - | 474 | |||||||||
(Gain) / loss recognized on initial recognition | - | 57 | 57 |
1 | The table do not hold results from Aegon the Netherlands; therefore, numbers differ from 29.2.2 Movement schedules by measurement component table |
Annual Report on Form 20-F 2023 | 271 |
![]() | About Aegon Governance and risk management Financial information | |||
2023 | | Reinsurance contracts | | |
Present value of cash inflows | 201 | |||
Present value of cash outflows | (531 | ) | ||
Risk adjustment for non-financial risk | 42 | |||
Contractual service margin | 271 | |||
Income recognized on initial recognition | (17 | ) | ||
2022 | ||||
Present value of cash inflows | 251 | |||
Present value of cash outflows | (259 | ) | ||
Risk adjustment for non-financial risk | 21 | |||
Contractual service margin | (13 | ) | ||
Income recognized on initial recognition | (0 | ) |
2023 | 2022 | |||||||
Maturity analysis CSM insurance contracts | | Discounted CSM | | | Discounted CSM | | ||
<1 year | 839 | 1,076 | ||||||
1-2 years | 756 | 802 | ||||||
2-3 years | 684 | 723 | ||||||
3-4 years | 618 | 654 | ||||||
4-5 years | 559 | 591 | ||||||
5-10 years | 2,071 | 2,210 | ||||||
10-20 years | 1,850 | 2,024 | ||||||
> 20 years | 748 | 849 | ||||||
On December 31 | 8,124 | 8,929 |
2023 | 2022 | |||||||
Maturity analysis CSM reinsurance contracts held, no PAA | | Discounted CSM | | | Discounted CSM | | ||
< 1yr | 8 | (22 | ) | |||||
1 < 2 yrs | 7 | (15 | ) | |||||
2 < 3 yrs | 6 | (13 | ) | |||||
3 < 4 yrs | 6 | (12 | ) | |||||
4 < 5 yrs | 5 | (10 | ) | |||||
5 < 10 yrs | 18 | (32 | ) | |||||
10 - 20 yrs | 17 | (16 | ) | |||||
> 20 yrs | 12 | 13 | ||||||
On December 31 | 78 | (107 | ) |
Notes to the consolidated financial statements Note 29 | ||||
Insurance contracts | Investment contracts with DPF | Reinsurance contracts held | ||||||||||||||||||||||||||||||||||||||||||||||
MRA | 1) | FVA | 2) | Other | Total CSM | MRA | FVA | Other | Total CSM | MRA | FVA | Other | Total CSM | |||||||||||||||||||||||||||||||||||
On January 1, 2023 | 1,836 | 4,673 | 2,420 | 8,929 | - | 72 | - | 72 | 1 | (129 | ) | 21 | (107 | ) | ||||||||||||||||||||||||||||||||||
Changes in estimates that adjust CSM | (40 | ) | (105 | ) | (32 | ) | (176 | ) | - | 121 | - | 121 | - | 11 | (14 | ) | (4 | ) | ||||||||||||||||||||||||||||||
Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts | - | - | - | - | - | - | - | - | - | 4 | 2 | 6 | ||||||||||||||||||||||||||||||||||||
New contracts issued: | ||||||||||||||||||||||||||||||||||||||||||||||||
non-onerous | - | - | 473 | 473 | - | - | - | - | - | - | 283 | 283 | ||||||||||||||||||||||||||||||||||||
Earnings released from contractual service margin | (191 | ) | (498 | ) | (264 | ) | (952 | ) | - | (17 | ) | - | (17 | ) | - | 9 | (34 | ) | (26 | ) | ||||||||||||||||||||||||||||
Insurance finance income / (expense) | 8 | 159 | 57 | 223 | - | - | - | - | - | (21 | ) | 8 | (13 | ) | ||||||||||||||||||||||||||||||||||
Cash flow - contracts disposed | - | (59 | ) | - | (59 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Net exchange differences | (57 | ) | (128 | ) | (17 | ) | (203 | ) | - | 2 | - | 2 | - | 6 | (5 | ) | 2 | |||||||||||||||||||||||||||||||
Other | 1 | (42 | ) | (68 | ) | (110 | ) | - | 1 | - | 1 | - | (30 | ) | (33 | ) | (63 | ) | ||||||||||||||||||||||||||||||
On December 31, 2023 | 1,557 | 4,000 | 2,568 | 8,124 | - | 180 | - | 180 | - | (149 | ) | 227 | 78 |
1 | MRA: Modified Retrospective Approach |
2 | FVA: Fair Value Approach |
Insurance contracts | Investment contracts with DPF | Reinsurance contracts held | ||||||||||||||||||||||||||||||||||||||||||||||
MRA | 1) | FVA | 2) | Other | Total CSM | MRA | FVA | Other | Total CSM | MRA | FVA | Other | Total CSM | |||||||||||||||||||||||||||||||||||
On January 1, 2022 | 2,639 | 7,036 | 2,191 | 11,866 | - | 195 | - | 195 | - | 238 | (5 | ) | 233 | |||||||||||||||||||||||||||||||||||
Changes in estimates that adjust CSM | (792 | ) | 1,101 | 15 | 323 | - | (106 | ) | - | (106 | ) | - | 167 | (3 | ) | 164 | ||||||||||||||||||||||||||||||||
Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts | - | - | - | - | - | - | - | — | - | 3 | 8 | 10 | ||||||||||||||||||||||||||||||||||||
New contracts issued: | ||||||||||||||||||||||||||||||||||||||||||||||||
non-onerous | - | - | 493 | 493 | - | - | - | — | - | (8 | ) | 26 | 18 | |||||||||||||||||||||||||||||||||||
Earnings released from contractual service margin | (205 | ) | (764 | ) | (260 | ) | (1,229 | ) | - | (11 | ) | - | (11 | ) | - | 45 | (4 | ) | 42 | |||||||||||||||||||||||||||||
Insurance finance income / (expense) | 9 | 179 | 33 | 221 | - | - | - | - | - | (37 | ) | - | (37 | ) | ||||||||||||||||||||||||||||||||||
Cash flow - contracts disposed | - | (96 | ) | - | (96 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Net exchange differences | 186 | 246 | (45 | ) | 387 | - | (6 | ) | - | (6 | ) | - | (17 | ) | - | (17 | ) | |||||||||||||||||||||||||||||||
Other | - | (3,028 | ) | (7 | ) | (3,035 | ) | - | - | - | - | - | (520 | ) | - | (520 | ) | |||||||||||||||||||||||||||||||
On December 31, 2022 | 1,836 | 4,673 | 2,420 | 8,929 | - | 72 | - | 72 | 1 | (129 | ) | 21 | (107 | ) |
1 | MRA: Modified Retrospective Approach |
2 | FVA: Fair Value Approach |
Annual Report on Form 20-F 2023 | 273 |
![]() | About Aegon Governance and risk management Financial information | |||
Assets backing up: | ||||
Insurance Contracts | ||||
On January 1, 2023 | (2,375 | ) | ||
Gross revaluation | 1,137 | |||
Net gains/losses transferred to income statement | 309 | |||
Foreign currency translation differences | 55 | |||
Tax effect | (322 | ) | ||
Other | 47 | |||
On December 31, 2023 | (1,147 | ) |
Assets backing up: | ||||
Insurance Contracts | ||||
On January 1, 2022 | 6,456 | |||
Gross revaluation | (12,445 | ) | ||
Net gains/losses transferred to income statement | 425 | |||
Foreign currency translation differences | 540 | |||
Tax effect | 2,578 | |||
Other | 72 | |||
On December 31, 2022 | (2,375 | ) |
∎ | Estimates of future cash flows; |
∎ | An adjustment to reflect time value of money and the financial risks related to future cash flows, to the extent that the financial risks are not included in the estimates of future cash flows and |
∎ | A risk adjustment for non-financial risk. |
Notes to the consolidated financial statements Note 29 | ||||
Annual Report on Form 20-F 2023 | 275 |
![]() | About Aegon Governance and risk management Financial information | |||
∎ | Reflect the time value of money, the characteristics of the cash flows and the liquidity characteristics of the insurance contracts; |
∎ | Are consistent with observable current market prices (if any) for financial instruments with cash flows whose characteristics are consistent with those of the insurance contracts, in terms of, for example, timing, currency and liquidity; and |
∎ | Exclude the effect of factors that influence observable market prices but do not affect the future cash flows of the insurance contracts. |
Yield curves (zero coupon rates excluding ILP) December 31, 2023 | 1 year | 5 years | 10 years | 15 years | 20 years | |||||||||||||||
EUR | 3.36% | 2.33% | 2.39% | 2.47% | 2.40% | |||||||||||||||
GBP | 4.74% | 3.35% | 3.28% | 3.40% | 3.43% | |||||||||||||||
USD | 4.83% | 3.89% | 3.90% | 4.00% | 4.39% |
Yield curves (zero coupon rates excluding ILP) December 31, 2022 | 1 year | 5 years | 10 years | 15 years | 20 years | |||||||||||||||
EUR | 3.18% | 3.10% | 3.05% | 2.98% | 2.73% | |||||||||||||||
GBP | 4.46% | 4.06% | 3.71% | 3.62% | 3.54% | |||||||||||||||
USD | 4.97% | 4.03% | 3.83% | 3.94% | 4.31% |
Notes to the consolidated financial statements Note 29 | ||||
ILP per portfolio, December 31, 2023 | 1 year | 5 years | 10 years | 15 years | 20 years | 30 years | ||||||||||||||||||
Fixed Deferred Annuity | 1.15% | 1.21% | 1.12% | 1.11% | 1.11% | 1.11% | ||||||||||||||||||
Indexed Universal Life | 1.20% | 1.24% | 1.20% | 1.18% | 1.18% | 1.21% | ||||||||||||||||||
Long-Term Care | 0.97% | 0.98% | 0.98% | 1.15% | 1.20% | 1.30% | ||||||||||||||||||
Traditional Life | 0.99% | 1.01% | 1.02% | 1.15% | 1.19% | 1.28% | ||||||||||||||||||
Universal Life | 1.01% | 1.03% | 1.02% | 1.13% | 1.17% | 1.26% | ||||||||||||||||||
Variable Annuities | 0.69% | 0.69% | 0.68% | 0.67% | 0.64% | 0.67% | ||||||||||||||||||
Annuities | 0.89% | 0.89% | 0.89% | 0.89% | 0.89% | 0.76% | ||||||||||||||||||
Individual Protection | 0.49% | 0.49% | 0.49% | 0.49% | 0.49% | 0.40% |
ILP per portfolio, December 31, 2022 | 1 year | 5 years | 10 years | 15 years | 20 years | 30 years | ||||||||||||||||||
Fixed Deferred Annuity | 1.44% | 1.48% | 1.31% | 1.12% | 1.12% | 1.12% | ||||||||||||||||||
Indexed Universal Life | 1.48% | 1.45% | 1.33% | 1.22% | 1.22% | 1.21% | ||||||||||||||||||
Long-Term Care | 1.37% | 1.38% | 1.38% | 1.32% | 1.32% | 1.32% | ||||||||||||||||||
Traditional Life | 1.41% | 1.42% | 1.40% | 1.31% | 1.31% | 1.31% | ||||||||||||||||||
Universal Life | 1.43% | 1.44% | 1.39% | 1.29% | 1.28% | 1.28% | ||||||||||||||||||
Variable Annuities | 0.67% | 0.67% | 0.67% | 0.67% | 0.67% | 0.68% | ||||||||||||||||||
Annuities | 1.08% | 1.08% | 1.08% | 1.08% | 1.08% | 1.03% | ||||||||||||||||||
Individual Protection | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.42% |
Annual Report on Form 20-F 2023 | 277 |
![]() | About Aegon Governance and risk management Financial information | |||
∎ | The relative weighting of coverage units when multiple services are provided; |
∎ | The non-distinct investment component, which is excluded from insurance revenue; and |
∎ | The adjustment for nonperformance risk that is applied to reinsurance contracts held. |
Notes to the consolidated financial statements Note 29 | ||||
Annual Report on Form 20-F 2023 | 279 |
![]() | About Aegon Governance and risk management | |||
Concentration of underwriting risk | Americas | United Kingdom | International | Total | ||||||||||||
Insurance contracts | ||||||||||||||||
Direct participating contracts | 70,436 | 39,687 | 193 | 110,315 | ||||||||||||
Without direct participation contracts | 59,873 | 642 | 6,432 | 66,946 | ||||||||||||
Investment contracts with DPF | ||||||||||||||||
Direct participating contracts | - | 21,594 | - | 21,594 | ||||||||||||
On December 31, 2023 | 130,308 | 61,922 | 6,625 | 198,855 |
Concentration of underwriting risk | Americas | United Kingdom | International | Total | ||||||||||||
Insurance contracts | ||||||||||||||||
Direct participating contracts | 69,163 | 36,694 | 187 | 106,044 | ||||||||||||
Without direct participation contracts | 61,730 | 927 | 7,383 | 70,039 | ||||||||||||
Investment contracts with DPF | ||||||||||||||||
Direct participating contracts | - | 21,055 | - | 21,055 | ||||||||||||
On December 31, 2022 | 130,892 | 58,676 | 7,570 | 197,139 |
2021 | 2020 | |||||||||||||||
Estimated approximate effect | On shareholders’ equity | On net result | On shareholders’ equity | On net result | ||||||||||||
20% increase in lapse rates | 70 | 71 | (151 | ) | 156 | |||||||||||
20% decrease in lapse rates | (67 | ) | (72 | ) | 47 | (157 | ) | |||||||||
5% increase in mortality rates | (83 | ) | (90 | ) | 52 | 344 | ||||||||||
5% decrease in mortality rates | 33 | 48 | (217 | ) | (354 | ) | ||||||||||
10% increase in morbidity rates | (213 | ) | (205 | ) | (225 | ) | (235 | ) | ||||||||
10% decrease in morbidity rates | 99 | 96 | 134 | 140 |
2021 | 2020 | |||||||
Life insurance | 110,691 | 109,062 | ||||||
Non-life insurance | ||||||||
- Unearned premiums and unexpired risks | 6,548 | 6,117 | ||||||
- Outstanding claims | 2,247 | 2,120 | ||||||
- Incurred but not reported claims | 816 | 881 | ||||||
Incoming reinsurance | 4,120 | 3,965 | ||||||
At December 31 | 124,422 | 122,146 |
2021 | 2020 | |||||||
Non-life insurance: | ||||||||
- Accident and health insurance | 9,374 | 8,887 | ||||||
- General insurance | 237 | 231 | ||||||
Total non-life insurance | 9,611 | 9,118 |
![]() |
Movements during the year in life insurance: | 2021 | 2020 | ||||||
At January 1 | 109,062 | 109,310 | ||||||
Portfolio transfers and acquisitions | (26 | ) | (29 | ) | ||||
Gross premium and deposits – existing and new business | 6,033 | 6,758 | ||||||
Unwind of discount / interest credited | 4,037 | 3,725 | ||||||
Insurance liabilities released | (9,490 | ) | (9,557 | ) | ||||
Changes in valuation of expected future benefits | (1,635 | ) | 1,918 | |||||
Loss recognized as a result of liability adequacy testing | (236 | ) | 903 | |||||
Shadow accounting adjustments | (1,821 | ) | 1,419 | |||||
Net exchange differences | 4,713 | (5,842 | ) | |||||
Transfer (to) / from reinsurance assets | 36 | (12 | ) | |||||
Transfer (to) / from insurance contracts for account of policyholders | 0 | 465 | ||||||
Other | 17 | 3 | ||||||
At December 31 | 110,691 | 109,062 |
Sensitivity analysis of net result and shareholders’ equity | Estimated approximate effects on net result | Estimated approximate effects on shareholders’ equity | ||||||
2021 | ||||||||
Shift up 50 basis points - Bond credit spreads | (192 | ) | (2,418 | ) | ||||
Shift down 50 basis points - Bond credit spreads | 169 | 2,387 | ||||||
Shift up 50 basis points - Mortgage spreads | (444 | ) | (401 | ) | ||||
Shift down 50 basis points - Mortgage spreads | 452 | 496 | ||||||
Shift up 5 basis points - Liquidity premium | 136 | 178 | ||||||
Shift down 5 basis points - Liquidity premium | (148 | ) | (104 | ) | ||||
2020 | ||||||||
Shift up 50 basis points - Bond credit spreads | (185 | ) | (1,998 | ) | ||||
Shift down 50 basis points - Bond credit spreads | 172 | 1,873 | ||||||
Shift up 50 basis points - Mortgage spreads | (449 | ) | (449 | ) | ||||
Shift down 50 basis points - Mortgage spreads | 476 | 477 | ||||||
Shift up 5 basis points - Liquidity premium | 162 | 159 | ||||||
Shift down 5 basis points - Liquidity premium | (164 | ) | (161 | ) |
![]() |
Movements during the year in non-life insurance: | 2021 | 2020 | ||||||
At January 1 | 9,118 | 9,190 | ||||||
Disposals | (25 | ) | - | |||||
Portfolio transfers and acquisitions | 1 | 6 | ||||||
Gross premiums – existing and new business | 1,508 | 1,551 | ||||||
Unwind of discount / interest credited | 479 | 499 | ||||||
Insurance liabilities released | (992 | ) | (1,080 | ) | ||||
Changes in valuation of expected future claims | (36 | ) | 77 | |||||
Change in unearned premiums | (731 | ) | (724 | ) | ||||
Change in unexpired risks | - | 2 | ||||||
Incurred related to current year | 670 | 670 | ||||||
Incurred related to prior years | 267 | 259 | ||||||
Release for claims settled current year | (269 | ) | (257 | ) | ||||
Release for claims settled prior years | (757 | ) | (860 | ) | ||||
Shadow accounting adjustments | (153 | ) | 385 | |||||
Change in IBNR | (59 | ) | 117 | |||||
Net exchange differences | 592 | (709 | ) | |||||
Other | (1 | ) | (6 | ) | ||||
At December 31 | 9,611 | 9,118 |
Movements during the year in incoming reinsurance: | 2021 | 2020 | ||||||
At January 1 | 3,965 | 4,385 | ||||||
Gross premium and deposits – existing and new business | 1,276 | 1,306 | ||||||
Unwind of discount / interest credited | 192 | 203 | ||||||
Insurance liabilities released | (1,562 | ) | (1,656 | ) | ||||
Changes in valuation of expected future benefits | (36 | ) | 66 | |||||
Shadow accounting adjustments | (7 | ) | 8 | |||||
Loss recognized as a result of liability adequacy | (3 | ) | 10 | |||||
Net exchange differences | 296 | (358 | ) | |||||
Other | (1 | ) | 2 | |||||
At December 31 | 4,120 | 3,965 |
Insurance contracts for account of policyholders | 2021 | 2020 | ||||||
At January 1 | 135,441 | 135,710 | ||||||
Portfolio transfers and acquisitions | (547 | ) | (64 | ) | ||||
Gross premium and deposits – existing and new business | 5,532 | 7,030 | ||||||
Unwind of discount / interest credited | 14,994 | 13,858 | ||||||
Insurance liabilities released | (13,199 | ) | (10,160 | ) | ||||
Fund charges released | (1,680 | ) | (1,644 | ) | ||||
Changes in valuation of expected future benefits | (145 | ) | (266 | ) | ||||
Transfer (to) / from insurance contracts | 783 | (465 | ) | |||||
Net exchange differences | 8,144 | (8,558 | ) | |||||
Other | 1 | - | ||||||
At December 31 | 149,323 | 135,441 |
Notes to the consolidated financial statements Note | ||||
2023 | ||||||||||||||||||||||||
On net result | On shareholders’ equity | On CSM | ||||||||||||||||||||||
Estimated approximate effect | Gross of reinsurance | Net of reinsurance | Gross of reinsurance | Net of reinsurance | Gross of reinsurance | Net of reinsurance | ||||||||||||||||||
Without direct participation contracts | ||||||||||||||||||||||||
20% increase in lapse rates | (95 | ) | (58 | ) | (43 | ) | (7 | ) | (126 | ) | (151 | ) | ||||||||||||
20% decrease in lapse rates | 57 | 35 | 41 | 18 | 117 | 169 | ||||||||||||||||||
5% increase in mortality rates | (520 | ) | (87 | ) | (443 | ) | (19 | ) | (86 | ) | 11 | |||||||||||||
5% decrease in mortality rates | 419 | 11 | 338 | (62 | ) | 177 | 55 | |||||||||||||||||
10% increase in morbidity rates | (139 | ) | (138 | ) | (153 | ) | (152 | ) | (759 | ) | (746 | ) | ||||||||||||
10% decrease in morbidity rates | 53 | 53 | 75 | 77 | 908 | 894 | ||||||||||||||||||
5% increase in expenses | (14 | ) | (12 | ) | (12 | ) | (10 | ) | (133 | ) | (134 | ) | ||||||||||||
5% decrease in expenses | 36 | 36 | 35 | 35 | 163 | 164 | ||||||||||||||||||
Direct participating contracts | ||||||||||||||||||||||||
20% increase in lapse rates | 55 | 48 | 56 | 58 | (32 | ) | (336 | ) | ||||||||||||||||
20% decrease in lapse rates | (70 | ) | (53 | ) | (65 | ) | (62 | ) | 123 | 428 | ||||||||||||||
5% increase in mortality rates | (84 | ) | (78 | ) | (71 | ) | (67 | ) | (699 | ) | (314 | ) | ||||||||||||
5% decrease in mortality rates | (5 | ) | (16 | ) | (15 | ) | (23 | ) | 835 | 436 | ||||||||||||||
10% increase in morbidity rates | - | - | - | - | - | - | ||||||||||||||||||
10% decrease in morbidity rates | - | - | - | - | - | - | ||||||||||||||||||
5% increase in expenses | (13 | ) | (13 | ) | (13 | ) | (14 | ) | (205 | ) | (201 | ) | ||||||||||||
5% decrease in expenses | 12 | 12 | 13 | 13 | 206 | 203 | ||||||||||||||||||
Non-life contracts | ||||||||||||||||||||||||
10% increase in claims | (6 | ) | (5 | ) | (8 | ) | (6 | ) | - | - | ||||||||||||||
10% decrease in claims | 6 | 5 | 9 | 6 | - | - |
2022 | ||||||||||||||||||||||||
On net result | On shareholders’ equity | On CSM | ||||||||||||||||||||||
Estimated approximate effect | Gross of reinsurance | | Net of reinsurance | | Gross of reinsurance | | Net of reinsurance | | Gross of reinsurance | | Net of reinsurance | | ||||||||||||
Without direct participation contracts | ||||||||||||||||||||||||
20% increase in lapse rates | (94 | ) | (61 | ) | (34 | ) | (2 | ) | 67 | (172 | ) | |||||||||||||
20% decrease in lapse rates | 72 | 42 | 46 | 15 | (83 | ) | 205 | |||||||||||||||||
5% increase in mortality rates | (507 | ) | (84 | ) | (451 | ) | (33 | ) | (343 | ) | (14 | ) | ||||||||||||
5% decrease in mortality rates | 422 | 11 | 362 | (43 | ) | 430 | 78 | |||||||||||||||||
10% increase in morbidity rates | (121 | ) | (119 | ) | (94 | ) | (92 | ) | (833 | ) | (819 | ) | ||||||||||||
10% decrease in morbidity rates | 33 | 28 | 11 | 8 | 980 | 969 | ||||||||||||||||||
5% increase in expenses | (7 | ) | (6 | ) | (2 | ) | (1 | ) | (157 | ) | (152 | ) | ||||||||||||
5% decrease in expenses | 5 | 4 | 1 | - | 183 | 153 | ||||||||||||||||||
Direct participating contracts | ||||||||||||||||||||||||
20% increase in lapse rates | 43 | 29 | 69 | 50 | 187 | 29 | ||||||||||||||||||
20% decrease in lapse rates | (106 | ) | (72 | ) | (125 | ) | (92 | ) | 68 | 188 | ||||||||||||||
5% increase in mortality rates | (47 | ) | (22 | ) | (37 | ) | (15 | ) | (565 | ) | (365 | ) | ||||||||||||
5% decrease in mortality rates | 10 | (14 | ) | - | (21 | ) | 623 | 411 | ||||||||||||||||
10% increase in morbidity rates | - | - | - | - | - | - | ||||||||||||||||||
10% decrease in morbidity rates | - | - | - | - | - | - | ||||||||||||||||||
5% increase in expenses | (8 | ) | (7 | ) | (7 | ) | (7 | ) | (220 | ) | (219 | ) | ||||||||||||
5% decrease in expenses | 5 | 5 | 5 | 5 | 221 | 220 | ||||||||||||||||||
Non-life contracts | ||||||||||||||||||||||||
10% increase in claims | (1 | ) | (1 | ) | (1 | ) | (1 | ) | - | - | ||||||||||||||
10% decrease in claims | 1 | 1 | 1 | 1 | - | - |
Without discretionary participation features | With discretionary participation features | Total | ||||||||||
At January 1, 2021 | 20,889 | 185 | 21,075 | |||||||||
Deposits | 20,947 | 0- | 20,947 | |||||||||
Withdrawals | (21,936 | ) | 0- | (21,936) | ||||||||
Investment contracts liabilities released | 0- | (3 | ) | (3) | ||||||||
Interest credited | 256 | 0- | 256 | |||||||||
Net exchange differences | 660 | 12 | 672 | |||||||||
Transfer (to)/from other headings | 780 | 0- | 780 | |||||||||
Other | (23 | ) | 0 | (23) | ||||||||
At December 31, 2021 | 21,573 | 194 | 21,767 | |||||||||
At January 1, 2020 | 18,382 | 211 | 18,594 | |||||||||
Deposits | 16,189 | - | 16,189 | |||||||||
Withdrawals | (16,047 | ) | - | (16,047) | ||||||||
Investment contracts liabilities released | - | (15 | ) | (15) | ||||||||
Interest credited | 246 | - | 246 | |||||||||
Net exchange differences | (698 | ) | (11 | ) | (709) | |||||||
Transfer (to)/from other headings | 2,828 | - | 2,828 | |||||||||
Other | (12 | ) | 0 | (12) | ||||||||
At December 31, 2020 | 20,889 | 185 | 21,075 |
Investment contracts consist of the following: | 2021 | 2020 | ||||||
Institutional guaranteed products | 187 | 295 | ||||||
Fixed annuities | 9,543 | 7,786 | ||||||
Savings accounts | 11,586 | 12,540 | ||||||
Investment contracts with discretionary participation features | 194 | 185 | ||||||
Other | 256 | 268 | ||||||
At December 31 | 21,767 | 21,075 |
Annual Report on Form 20-F 2023 | 281 |
![]() | About Aegon Governance and risk management |
Without discretionary participation features | With discretionary participation features | Total | ||||||||||
At January 1, 2021 | 59,625 | 31,999 | 91,624 | |||||||||
Gross premium and deposits – existing and new business | 11,185 | 810 | 11,995 | |||||||||
Withdrawals | (10,716 | ) | 0- | (10,716 | ) | |||||||
Interest credited | 7,572 | 3,130 | 10,702 | |||||||||
Investment contracts liabilities released | 0- | (3,815 | ) | (3,815 | ) | |||||||
Fund charges released | (209 | ) | 0- | (209 | ) | |||||||
Net exchange differences | 4,256 | 2,097 | 6,353 | |||||||||
Transfer (to)/from other headings | (473 | ) | (871 | ) | (1,344 | ) | ||||||
Other | 1 | 0 | 1 | |||||||||
At December 31, 2021 | 71,242 | 33,350 | 104,592 | |||||||||
At January 1, 2020 | 59,956 | 33,870 | 93,826 | |||||||||
Gross premium and deposits – existing and new business | 11,116 | 786 | 11,902 | |||||||||
Withdrawals | (10,404 | ) | - | (10,404 | ) | |||||||
Interest credited | 5,902 | 2,895 | 8,797 | |||||||||
Investment contracts liabilities released | - | (3,457 | ) | (3,457 | ) | |||||||
Fund charges released | (196 | ) | - | (196 | ) | |||||||
Net exchange differences | (4,008 | ) | (1,808 | ) | (5,816 | ) | ||||||
Transfer (to)/from other headings | (2,740 | ) | (287 | ) | (3,027 | ) | ||||||
Other | (1 | ) | 0 | (1 | ) | |||||||
At December 31, 2020 | 59,625 | 31,999 | 91,624 |
![]() | ||||
2021 | 2020 | |||||||||||||||||||||||
United States 1) | The Netherlands 2) | Total 3) | United States 1) | The Netherlands 2) | Total 3) | |||||||||||||||||||
At January 1 | 2,715 | 2,032 | 4,747 | 1,296 | 1,735 | 3,031 | ||||||||||||||||||
Incurred guarantee benefits 4) | (1,047 | ) | (619 | ) | (1,666 | ) | 1,638 | 297 | 1,935 | |||||||||||||||
Paid guarantee benefits | (2 | ) | 0- | (2 | ) | (2 | ) | - | (2 | ) | ||||||||||||||
Net exchange differences | 164 | 0- | 164 | (217 | ) | - | (217 | ) | ||||||||||||||||
At December 31 | 1,830 | 1,413 | 3,243 | 2,715 | 2,032 | 4,747 | ||||||||||||||||||
Account value 5) | 34,945 | 9,748 | 44,693 | 32,870 | 8,968 | 41,838 | ||||||||||||||||||
Net amount at risk 6) | 314 | 1,538 | 1,852 | 661 | 2,427 | 3,088 |
![]() |
2021 | 2020 | |||||||||||||||||||||||
GMDB 1) | GMIB 2) | Total 4) | GMDB 1) | GMIB 2) | Total 4) | |||||||||||||||||||
At January 1 | 488 | 638 | 1,127 | 448 | 686 | 1,133 | ||||||||||||||||||
Incurred guarantee benefits 5) | 27 | (127 | ) | (99 | ) | 144 | 44 | 189 | ||||||||||||||||
Paid guarantee benefits | (49 | ) | (25 | ) | (75 | ) | (61 | ) | (34 | ) | (95 | ) | ||||||||||||
Net exchange differences | 36 | 42 | 79 | (43 | ) | (57 | ) | (100 | ) | |||||||||||||||
At December 31 | 502 | 529 | 1,031 | 488 | 638 | 1,127 | ||||||||||||||||||
GMDB 1) | GMIB 2) | GMDB 1) ,3) | GMIB 2) ,3) | |||||||||||||||||||||
Account value 6) | 56,426 | 5,186 | 52,481 | 5,337 | ||||||||||||||||||||
Net amount at risk 7) | 843 | 472 | 919 | 542 | ||||||||||||||||||||
Average attained age of contract holders | 71 | 72 | 70 | 72 |
2023 | 2022 | |||||||
On January 1 | 9,597 | 20,674 | ||||||
Deposits | 1,606 | 22,638 | ||||||
Withdrawals | (1,405 | ) | (23,118 | ) | ||||
Interest credited | 221 | 232 | ||||||
Net exchange differences | (345 | ) | 582 | |||||
Transfer to/from other headings | 567 | 797 | ||||||
Transfers to disposal groups | - | (12,179 | ) | |||||
Other | (18 | ) | (29 | ) | ||||
On December 31 | 10,222 | 9,597 |
Investment contracts consist of the following: | 2023 | 2022 | ||||||
Institutional guaranteed products | 169 | 179 | ||||||
Fixed annuities | 10,024 | 9,418 | ||||||
Other | 29 | - | ||||||
On December 31 | 10,222 | 9,597 |
![]() |
2021 | 2020 | |||||||
GMI 1), 2) | GMI 1), 2) | |||||||
At January 1 | 7,973 | 6,422 | ||||||
Incurred guarantee benefits 3) | (1,544 | ) | 1,551 | |||||
At December 31 | 6,429 | 7,973 | ||||||
Account value 4) | 20,176 | 20,202 | ||||||
Net amount at risk 5) | 6,794 | 7,931 |
2023 | 2022 | |||||||
On January 1 | 55,631 | 71,690 | ||||||
Gross premium and deposits – existing and new business | 12,648 | 11,261 | ||||||
Withdrawals | (9,840 | ) | (15,233 | ) | ||||
Interest credited | 7,636 | (9,864 | ) | |||||
Fund charges released | (313 | ) | (324 | ) | ||||
Net exchange differences | (40 | ) | 437 | |||||
Transfers to disposal groups | - | (1,396 | ) | |||||
Transfer to/from other headings | (680 | ) | (943 | ) | ||||
Other | 2 | 2 | ||||||
On December 31 | 65,044 | 55,631 |
![]() |
2021 | 2020 | 2023 | 2022 | |||||||||||||
Capital funding | 1,292 | 1,241 | ||||||||||||||
Capital funding | ||||||||||||||||
Capital funding | ||||||||||||||||
Capital funding | 763 | 1,245 | ||||||||||||||
Operational funding | 8,369 | 7,283 | ||||||||||||||
Operational funding | ||||||||||||||||
Operational funding | ||||||||||||||||
Operational funding | 1,593 | 2,806 | ||||||||||||||
At December 31 | 9,661 | 8,524 | ||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | 2,356 | 4,051 | ||||||||||||||
Current | ||||||||||||||||
Current | ||||||||||||||||
Current | ||||||||||||||||
Current | 824 | 950 | 32 | 1,150 | ||||||||||||
Non-current | 8,837 | 7,574 | ||||||||||||||
Non-current | ||||||||||||||||
Non-current | ||||||||||||||||
Non-current | 2,325 | 2,901 | ||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | 2,356 | 4,051 | ||||||||||||||
Fair value of borrowings | 10,171 | 9,165 | ||||||||||||||
Fair value of borrowings | ||||||||||||||||
Fair value of borrowings | ||||||||||||||||
Fair value of borrowings | 2,459 | 4,114 |
Notes to the consolidated financial statements Note 32 | ||||
(sorted at maturity) | Coupon rate | Coupon date | Issue / Maturity | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
(sorted at maturity) | ||||||||||||||||||||||||||||||||||||||||
(sorted at maturity) | ||||||||||||||||||||||||||||||||||||||||
(sorted at maturity) | Coupon rate | Coupon date | Issue / Maturity | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
EUR 500 million Senior Unsecured Notes | ||||||||||||||||||||||||||||||||||||||||
EUR 500 million Senior Unsecured Notes | ||||||||||||||||||||||||||||||||||||||||
EUR 500 million Senior Unsecured Notes | ||||||||||||||||||||||||||||||||||||||||
EUR 500 million Senior Unsecured Notes | 1.00% | December 8 | 2016 / 23 | 499 | 498 | 1.000% | December 8 | 2016 / 23 | - | 499 | ||||||||||||||||||||||||||||||
GBP 250 million Medium-Term Notes | 6.125% | December 15 | 1999 / 31 | 296 | 278 | |||||||||||||||||||||||||||||||||||
GBP 250 million Medium-Term Notes | ||||||||||||||||||||||||||||||||||||||||
GBP 250 million Medium-Term Notes | ||||||||||||||||||||||||||||||||||||||||
GBP 250 million Medium-Term Notes | 6.125% | December 15 | 1999 / 31 | 287 | 281 | |||||||||||||||||||||||||||||||||||
GBP 400 million Senior Unsecured Notes | ||||||||||||||||||||||||||||||||||||||||
GBP 400 million Senior Unsecured Notes | ||||||||||||||||||||||||||||||||||||||||
GBP 400 million Senior Unsecured Notes | ||||||||||||||||||||||||||||||||||||||||
GBP 400 million Senior Unsecured Notes | 6.625% | Semi-annually | 2009 / 39 | 472 | 442 | 6.625% | Semi-annually, December 16 | 2009 / 39 | 457 | 446 | ||||||||||||||||||||||||||||||
Other | 26 | 24 | ||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
Other | 18 | 19 | ||||||||||||||||||||||||||||||||||||||
At December 31 | 1,292 | 1,241 | ||||||||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||||||||||
On December 31 | 763 | 1,245 |
![]() |
Coupon rate | Coupon date | Issue / Maturity | 2021 | 2020 | ||||||||||||||||
Revolving Loan Facility Warehouse Mortgage Loans 1) | Floating | Monthly | - / 22 | 592 | 743 | |||||||||||||||
Revolving Loan Facility Warehouse Mortgage Loans 1) | Floating | Monthly | - / 24 | 494 | 802 | |||||||||||||||
EUR 875 million “SAECURE 16” RMBS Note 1) ,2) | Floating | Quarterly | 2018 / 23 | 676 | 758 | |||||||||||||||
EUR 512 million “SAECURE 18” RMBS Note 1) ,3) | Floating | Quarterly | 2019 / 25 | 355 | 422 | |||||||||||||||
EUR 657 million “SAECURE 20” RMBS Note 1) ,4) | Floating | Quarterly | 2021 / 27 | 625 | 0- | |||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 1) ,5) | 0.250% | Annual | 2016 / 23 | 499 | 498 | |||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 1) ,6) | 0.375% | Annual | 2017 / 24 | 499 | 498 | |||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 1) ,7) | 0.010% | Annual | 2020 / 25 | 506 | 508 | |||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 1) ,8) | 0.750% | Annual | 2017 / 27 | 492 | 491 | |||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 1) ,9) | 0.375% | Annual | 2021 / 36 | 494 | 0 | |||||||||||||||
FHLB Secured borrowings 1) | Floating | Quarterly | 2021 / 24 | 2,634 | 2,055 | |||||||||||||||
Aegon Bank Senior Non-Preferred debt1) | 0.625% | Annual | 2019 / 24 | 499 | 498 | |||||||||||||||
Other | 5 | 9 | ||||||||||||||||||
At December 31 | 8,369 | 7,283 |
Coupon rate | Coupon date | Issue / Maturity | 2023 | 2022 | ||||||||||||||||
FHLB Secured borrowings 1) | Floating | Quarterly | 2021 / 24 | 1,562 | 2,806 | |||||||||||||||
North Westerly VI Note 1) | Floating | Quarterly | 2020 / 32 | 15 | - | |||||||||||||||
North Westerly VII Note 1) | Floating | Quarterly | 2021 / 34 | 16 | - | |||||||||||||||
On December 31 | 1,593 | 2,806 |
1 | Issued by a subsidiary of Aegon |
Undrawn committed borrowing facilities: | 2021 | 2020 | ||||||||||||||
Undrawn committed borrowing facilities: | ||||||||||||||||
Undrawn committed borrowing facilities: | ||||||||||||||||
Undrawn committed borrowing facilities: | 2023 | 2022 | ||||||||||||||
Floating-rate | ||||||||||||||||
- Expiring within one year | 408 | 666 | ||||||||||||||
Floating-rate | ||||||||||||||||
Floating-rate | ||||||||||||||||
Floating-rate | ||||||||||||||||
- Expiring beyond one year | 2,991 | 2,622 | ||||||||||||||
- Expiring beyond one year | ||||||||||||||||
- Expiring beyond one year | ||||||||||||||||
- Expiring beyond one year | 2,623 | 3,435 | ||||||||||||||
At December 31 | 3,399 | 3,288 | ||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | 2,623 | 3,435 |
2023 | 2022 | |||||||
On January 1 | 100 | 193 | ||||||
Additional provisions | 77 | 28 | ||||||
Disposal of a business | (13 | ) | (8 | ) | ||||
Unused amounts reversed through the income statement | (25 | ) | (10 | ) | ||||
Used during the year | (54 | ) | (57 | ) | ||||
Net exchange differences | (2 | ) | 5 | |||||
Transfers to disposal groups | - | (52 | ) | |||||
On December 31 | 83 | 100 | ||||||
Current | 78 | 90 | ||||||
Non-current | 5 | 10 |
Annual Report on Form 20-F 2023 | 283 |
2021 | 2020 | |||||||
At January 1 | 309 | 214 | ||||||
Additional provisions | 91 | 180 | ||||||
Disposals | (6 | ) | (38 | ) | ||||
Unused amounts reversed through the income statement | 0 | (1 | ) | |||||
Used during the year | (209 | ) | (32 | ) | ||||
Net exchange differences | | 9 | | (15 | ) | |||
At December 31 | 193 | 309 | ||||||
Current | 139 | 253 | ||||||
Non-current | 54 | 56 |
![]() | About Aegon Governance and risk management Financial information | |||
![]() |
2023 | 2022 | |||||||||||||||
2021 | 2020 | |||||||||||||||
Retirement benefit plans | 3,547 | 4,318 | ||||||||||||||
Retirement benefit plans | ||||||||||||||||
Retirement benefit plans | ||||||||||||||||
Retirement benefit plans | 368 | 225 | ||||||||||||||
Other post-employment benefit plans | 277 | 275 | ||||||||||||||
Other post-employment benefit plans | ||||||||||||||||
Other post-employment benefit plans | ||||||||||||||||
Other post-employment benefit plans | 178 | 184 | ||||||||||||||
Total defined benefit plans | ||||||||||||||||
Total defined benefit plans | ||||||||||||||||
Total defined benefit plans | ||||||||||||||||
Total defined benefit plans | 3,824 | 4,593 | 546 | 409 | ||||||||||||
Retirement benefit plans in surplus | 119 | 43 | ||||||||||||||
Retirement benefit plans in surplus | ||||||||||||||||
Retirement benefit plans in surplus | ||||||||||||||||
Retirement benefit plans in surplus | 103 | 87 | ||||||||||||||
Reimbursement rights | ||||||||||||||||
Reimbursement rights | ||||||||||||||||
Reimbursement rights | ||||||||||||||||
Reimbursement rights | 20 | - | ||||||||||||||
Total defined benefit assets | ||||||||||||||||
Total defined benefit assets | ||||||||||||||||
Total defined benefit assets | ||||||||||||||||
Total defined benefit assets | 119 | 43 | 123 | 87 | ||||||||||||
Retirement benefit plans in deficit | 3,666 | 4,361 | ||||||||||||||
Retirement benefit plans in deficit | ||||||||||||||||
Retirement benefit plans in deficit | ||||||||||||||||
Retirement benefit plans in deficit | 491 | 312 | ||||||||||||||
Other post-employment benefit plans in deficit | ||||||||||||||||
Other post-employment benefit plans in deficit | ||||||||||||||||
Other post-employment benefit plans in deficit | ||||||||||||||||
Other post-employment benefit plans in deficit | 277 | 275 | 178 | 184 | ||||||||||||
Total defined benefit liabilities | 3,944 | 4,636 | ||||||||||||||
Total defined benefit liabilities | ||||||||||||||||
Total defined benefit liabilities | ||||||||||||||||
Total defined benefit liabilities | 669 | 496 |
2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Movements during the year in defined benefit plans | Retirement benefit plans | Other post- employment benefit plans | Total | Retirement benefit plans | Other post- employment benefit plans | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Movements during the year in defined benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Movements during the year in defined benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Movements during the year in defined benefit plans | Retirement benefit plans | | Other post-employ- ment benefit plans | | Total | Retirement benefit plans | | Other post-employ- ment benefit plans | | Total | ||||||||||||||||||||||||||||||||||||||||||||||
At January 1 | 4,318 | 275 | 4,593 | 4,076 | 283 | 4,359 | ||||||||||||||||||||||||||||||||||||||||||||||||||
On January 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On January 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On January 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On January 1 | 225 | 184 | 409 | 3,547 | 277 | 3,824 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit expenses | (8 | ) | 16 | 8 | 104 | 18 | 122 | 113 | 19 | 132 | 68 | 17 | 85 | |||||||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | (487 | ) | (14 | ) | (501 | ) | 350 | 10 | 360 | |||||||||||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans | 167 | (7 | ) | 160 | (837 | ) | (67 | ) | (904 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Contributions paid | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions paid | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions paid | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions paid | (164 | ) | 0- | (164 | ) | (54 | ) | - | (54 | ) | (83 | ) | - | (83 | ) | (38 | ) | - | (38 | ) | ||||||||||||||||||||||||||||||||||||
Benefits paid | (110 | ) | (15 | ) | (125 | ) | (103 | ) | (16 | ) | (119 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (39 | ) | (12 | ) | (51 | ) | (117 | ) | (17 | ) | (134 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net exchange differences | 29 | 16 | 45 | (61 | ) | (19 | ) | (80 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Net exchange differences | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net exchange differences | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net exchange differences | (15 | ) | (6 | ) | (21 | ) | 21 | 15 | 36 | |||||||||||||||||||||||||||||||||||||||||||||||
Transfers to disposal groups | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers to disposal groups | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers to disposal groups | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers to disposal groups | - | - | - | (2,421 | ) | (41 | ) | (2,462 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Other | (32 | ) | 0- | (32 | ) | 5 | - | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | - | - | - | 1 | - | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31 | 3,547 | 277 | 3,824 | 4,318 | 275 | 4,593 | ||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | 368 | 178 | 546 | 225 | 184 | 409 |
2021 | 2020 | |||||||||||||||||||||||||||||||
Retirement benefit plans | Other post- employment benefit plans | Total | Retirement benefit plans | Other post- employment benefit plans | Total | |||||||||||||||||||||||||||
Present value of wholly or partly funded obligations | 4,604 | 0- | 4,604 | 4,858 | - | 4,858 | ||||||||||||||||||||||||||
Fair value of plan assets | (4,717 | ) | 0- | (4,717 | ) | (4,466 | ) | - | (4,466 | ) | ||||||||||||||||||||||
(112 | ) | 0- | (112 | ) | 392 | - | 392 | |||||||||||||||||||||||||
Present value of wholly unfunded obligations 1) | 3,660 | 277 | 3,937 | 3,926 | 275 | 4,201 | ||||||||||||||||||||||||||
At December 31 | 3,547 | 277 | 3,824 | 4,318 | 275 | 4,593 |
2023 | 2022 | |||||||||||||||||||||||
Retirement benefit plans | | Other post-employ- ment benefit plans | | Total | Retirement benefit plans | | Other post-employ- ment benefit plans | | Total | |||||||||||||||
Present value of wholly or partly funded obligations | 3,165 | - | 3,165 | 3,098 | - | 3,098 | ||||||||||||||||||
Fair value of plan assets | (3,051 | ) | - | (3,051 | ) | (3,083 | ) | - | (3,083 | ) | ||||||||||||||
Fair value of reimbursement rights | (20 | ) | 2 | (19 | ) | - | - | - | ||||||||||||||||
93 | 2 | 95 | 15 | - | 15 | |||||||||||||||||||
Present value of wholly unfunded obligations | 275 | 176 | 451 | 210 | 184 | 394 | ||||||||||||||||||
On December 31 | 368 | 178 | 546 | 225 | 184 | 409 |
2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit expenses | Retirement benefit plans | Other post- employment benefit plans | Total | Retirement benefit plans | Other post- employment benefit plans | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit expenses | Retirement benefit plans | | Other post-employ- ment benefit plans | | Total | Retirement benefit plans | | Other post-employ- ment benefit plans | | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Current year service cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current year service cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current year service cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current year service cost | 48 | 11 | 59 | 52 | 11 | 63 | 38 | 6 | 44 | 32 | 11 | 43 | ||||||||||||||||||||||||||||||||||||||||||||
Net interest on the net defined benefit liability (asset) | 32 | 5 | 37 | 52 | 7 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest on the net defined benefit liability (asset) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest on the net defined benefit liability (asset) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest on the net defined benefit liability (asset) | 10 | 9 | 19 | 38 | 6 | 45 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Past service cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past service cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past service cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past service cost | (88 | ) | - | (88 | ) | 1 | 0- | 1 | 66 | 4 | 69 | (3 | ) | - | (3 | ) | ||||||||||||||||||||||||||||||||||||||||
Total defined benefit expenses | (8 | ) | 16 | 8 | 104 | 18 | 122 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total defined benefit expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total defined benefit expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total defined benefit expenses | 113 | 19 | 132 | 68 | 17 | 85 |
![]() | Notes to the consolidated financial statements Note | |||
2019 | ||||||||||||
Retirement benefit plans | Other post- employment benefit plans | Total | ||||||||||
Current year service cost | 148 | 8 | 157 | |||||||||
Net interest on the net defined benefit liability (asset) | 80 | 9 | 89 | |||||||||
Past service cost | | (1 | ) | | - | | | (1 | ) | |||
Total defined benefit expenses | 227 | 17 | 244 |
Movements during the year of the present value of the defined benefit obligations | 2021 | 2020 | ||||||||||||||
Movements during the year of the present value of the defined benefit obligations | ||||||||||||||||
Movements during the year of the present value of the defined benefit obligations | ||||||||||||||||
Movements during the year of the present value of the defined benefit obligations | 2023 | 2022 | ||||||||||||||
At January 1 | 9,059 | 8,779 | ||||||||||||||
On January 1 | ||||||||||||||||
On January 1 | ||||||||||||||||
On January 1 | ||||||||||||||||
On January 1 | 3,491 | 8,541 | ||||||||||||||
Current year service cost | ||||||||||||||||
Current year service cost | ||||||||||||||||
Current year service cost | ||||||||||||||||
Current year service cost | 59 | 63 | 46 | 43 | ||||||||||||
Interest expense | 131 | 175 | ||||||||||||||
Interest expense | ||||||||||||||||
Interest expense | ||||||||||||||||
Interest expense | 172 | 158 | ||||||||||||||
Remeasurements of the defined benefit obligations: | ||||||||||||||||
Remeasurements of the defined benefit obligations: | ||||||||||||||||
Remeasurements of the defined benefit obligations: | ||||||||||||||||
Remeasurements of the defined benefit obligations: | ||||||||||||||||
- Actuarial gains and losses arising from changes in demographic assumptions | (59 | ) | (51 | ) | ||||||||||||
- Actuarial gains and losses arising from changes in demographic assumptions | ||||||||||||||||
- Actuarial gains and losses arising from changes in demographic assumptions | ||||||||||||||||
- Actuarial gains and losses arising from changes in demographic assumptions | 53 | (3 | ) | |||||||||||||
- Actuarial gains and losses arising from changes in financial assumptions | ||||||||||||||||
- Actuarial gains and losses arising from changes in financial assumptions | ||||||||||||||||
- Actuarial gains and losses arising from changes in financial assumptions | ||||||||||||||||
- Actuarial gains and losses arising from changes in financial assumptions | (299 | ) | 859 | 61 | (2,420 | ) | ||||||||||
Past service cost | (88 | ) | 1 | |||||||||||||
Past service cost | ||||||||||||||||
Past service cost | ||||||||||||||||
Past service cost | 109 | (3 | ) | |||||||||||||
Benefits paid | (455 | ) | (362 | ) | ||||||||||||
Amounts paid in respect of settlements | (140 | ) | - | |||||||||||||
Benefits paid | ||||||||||||||||
Benefits paid | ||||||||||||||||
Benefits paid | (252 | ) | (529 | ) | ||||||||||||
Net exchange differences | 364 | (409 | ) | |||||||||||||
Net exchange differences | ||||||||||||||||
Net exchange differences | ||||||||||||||||
Net exchange differences | (65 | ) | 164 | |||||||||||||
Transfer to disposal groups | ||||||||||||||||
Transfer to disposal groups | ||||||||||||||||
Transfer to disposal groups | ||||||||||||||||
Transfer to disposal groups | - | (2,462 | ) | |||||||||||||
Other | | (32 | ) | | 5 | | ||||||||||
At December 31 | 8,541 | 9,059 | ||||||||||||||
Other | ||||||||||||||||
Other | ||||||||||||||||
Other | - | 1 | ||||||||||||||
Movements during the year in plan assets for retirement benefit plans | 2021 | 2020 | ||||||||||||||
At January 1 | 4,466 | 4,420 | ||||||||||||||
Interest income (based on discount rate) | 94 | 116 | ||||||||||||||
Remeasurements of the net defined liability (asset) | 144 | 448 | ||||||||||||||
Contributions by employer | 164 | 54 | ||||||||||||||
Benefits paid | (330 | ) | (243 | ) | ||||||||||||
Amounts paid in respect of settlements | (140 | ) | - | |||||||||||||
Net exchange differences | | 319 | | | (329 | ) | ||||||||||
At December 31 | 4,717 | 4,466 | ||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | ||||||||||||||||
On December 31 | 3,616 | 3,491 |
Movements during the year in plan assets for retirement benefit plans | 2023 | 2022 | ||||||
On January 1 | 3,083 | 4,717 | ||||||
Interest income (based on discount rate) | 153 | 114 | ||||||
Remeasurements of the net defined liability (asset) | (21 | ) | (1,518 | ) | ||||
Contributions by employer | 83 | 38 | ||||||
Benefits paid | (203 | ) | (395 | ) | ||||
Net exchange differences | (44 | ) | 127 | |||||
On December 31 | 3,051 | 3,083 |
2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of plan assets for retirement benefit plans | Quoted | Unquoted | Total | in % of total plan assets | Quoted | Unquoted | Total | in % of total plan assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity instruments | 0- | 0- | 0- | 0% | 154 | 0- | 154 | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of plan assets for retirement benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of plan assets for retirement benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of plan assets for retirement benefit plans | Quoted | Unquoted | Total | in % of total plan assets | Quoted | Unquoted | Total | in % of total plan assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument | 603 | 387 | 990 | 21% | 450 | 717 | 1,167 | 26% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument | 424 | 177 | 601 | 20 | % | 336 | 154 | 490 | 16 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | 0- | 142 | 142 | 3% | 0- | 110 | 110 | 2% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | 0- | (3 | ) | (3 | ) | (0%) | 0- | 16 | 16 | 0% | - | (143 | ) | (143 | ) | (5 | %) | - | (218 | ) | (218 | ) | (7 | %) | ||||||||||||||||||||||||||||||||||||||||
Investment funds | 0- | 3,069 | 3,069 | 65% | 2 | 2,449 | 2,451 | 55% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment funds | - | 2,142 | 2,142 | 70 | % | - | 2,214 | 2,214 | 72 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Structured securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Structured securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Structured securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Structured securities | - | 200 | 200 | 7 | % | - | 268 | 268 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 2 | 516 | 518 | 11% | 3 | 563 | 567 | 13% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31 | 605 | 4,112 | 4,717 | 100% | 610 | 3,856 | 4,466 | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | - | 252 | 252 | 8 | % | - | 328 | 328 | 11 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | 424 | 2,627 | 3,051 | 100 | % | 336 | 2,746 | 3,083 | 100 | % |
Movements during the year of the fair value of the reimbursement rights | 2023 | 2022 | ||||||
On January 1 | - | - | ||||||
Current year service cost | 2 | - | ||||||
Remeasurements of the defined benefit obligations: | ||||||||
- Actuarial gains and losses arising from changes in demographic assumptions | - | - | ||||||
- Actuarial gains and losses arising from changes in financial assumptions | (25 | ) | - | |||||
Past service cost | 40 | - | ||||||
Benefits paid | 2 | - | ||||||
On December 31 | 20 | - |
Annual Report on Form 20-F 2023 | 285 |
![]() | About Aegon Governance and risk management Financial information | |||
![]() |
Notes to the consolidated financial statements Note 33 | ||||
![]() |
Actuarial assumptions used to determine defined benefit obligations at year-end | 2021 | 2020 | ||||||||||||||
Actuarial assumptions used to determine defined benefit obligations at year-end | ||||||||||||||||
Actuarial assumptions used to determine defined benefit obligations at year-end | ||||||||||||||||
Actuarial assumptions used to determine defined benefit obligations at year-end | 2023 | 2022 | ||||||||||||||
Demographic actuarial assumptions | ||||||||||||||||
Mortality | US mortality table 1) | US mortality table 1) | ||||||||||||||
Mortality | ||||||||||||||||
Mortality | ||||||||||||||||
Mortality | US mortality table1) | US mortality table1) | ||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Discount rate 2) | 2.80%/2.61% | 2.47%/2.18% | ||||||||||||||
Discount rate | ||||||||||||||||
Discount rate | ||||||||||||||||
Discount rate | ||||||||||||||||
Discount rate | 5.00%/4.93% | 5.22%/5.14% | ||||||||||||||
Salary increase rate | ||||||||||||||||
Salary increase rate | ||||||||||||||||
Salary increase rate | ||||||||||||||||
Salary increase rate | 4.00% | 4.00% | 4.00% | 4.00% | ||||||||||||
Health care trend rate | 6.10% | 6.30% | ||||||||||||||
Health care trend rate | ||||||||||||||||
Health care trend rate | ||||||||||||||||
Health care trend rate | 6,80% | 6.30% |
1 | -PRI-2012 MP-2021. Comparative figures are as included in the Integrated Annual Report |
Estimated approximate effects on the defined benefit obligation | ||||||||||||||||
Estimated approximate effects on the defined benefit obligation | ||||||||||||||||
2023 | 2022 | |||||||||||||||
2021 | 2020 | |||||||||||||||
Demographic actuarial assumptions | ||||||||||||||||
Demographic actuarial assumptions | ||||||||||||||||
Demographic actuarial assumptions | ||||||||||||||||
Demographic actuarial assumptions | ||||||||||||||||
10% increase in mortality rates | ||||||||||||||||
10% increase in mortality rates | ||||||||||||||||
10% increase in mortality rates | ||||||||||||||||
10% increase in mortality rates | (69 | ) | (86 | ) | (47 | ) | (50 | ) | ||||||||
10% decrease in mortality rates | 77 | 95 | ||||||||||||||
10% decrease in mortality rates | ||||||||||||||||
10% decrease in mortality rates | ||||||||||||||||
10% decrease in mortality rates | 53 | 54 | ||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
100 basis points increase in discount rate | (357 | ) | (422 | ) | ||||||||||||
100 basis points increase in discount rate | ||||||||||||||||
100 basis points increase in discount rate | ||||||||||||||||
100 basis points increase in discount rate | (205 | ) | (222 | ) | ||||||||||||
100 basis points decrease in discount rate | ||||||||||||||||
100 basis points decrease in discount rate | ||||||||||||||||
100 basis points decrease in discount rate | ||||||||||||||||
100 basis points decrease in discount rate | 436 | 521 | 250 | 277 | ||||||||||||
100 basis points increase in salary increase rate | 0- | 29 | ||||||||||||||
100 basis points increase in salary increase rate | ||||||||||||||||
100 basis points increase in salary increase rate | ||||||||||||||||
100 basis points increase in salary increase rate | 5 | 4 | ||||||||||||||
100 basis points decrease in salary increase rate | ||||||||||||||||
100 basis points decrease in salary increase rate | ||||||||||||||||
100 basis points decrease in salary increase rate | ||||||||||||||||
100 basis points decrease in salary increase rate | 0- | (25 | ) | (4 | ) | (3 | ) | |||||||||
100 basis points increase in health care trend rate | 13 | 13 | ||||||||||||||
100 basis points increase in health care trend rate | ||||||||||||||||
100 basis points increase in health care trend rate | ||||||||||||||||
100 basis points increase in health care trend rate | 10 | 10 | ||||||||||||||
100 basis points decrease in health care trend rate | (12 | ) | (12 | ) | ||||||||||||
100 basis points decrease in health care trend rate | ||||||||||||||||
100 basis points decrease in health care trend rate | ||||||||||||||||
100 basis points decrease in health care trend rate | (9 | ) | (9 | ) |
Target allocation of plan assets for retirement benefit plans for the next annual period is: | ||||
Equity instruments | ||||
Debt instruments | ||||
Other |
![]() |
Actuarial assumptions used to determine defined benefit obligations at year-end | 2021 | 2020 | ||||||
Demographic actuarial assumptions | ||||||||
Mortality | NL mortality table 1) | NL mortality table 1) | ||||||
Financial actuarial assumptions | ||||||||
Discount rate | 1.01% | 0.51% | ||||||
Salary increase rate 2) | Curve 2021 | Curve 2020 | ||||||
Indexation 3) | 53.05% of Curve 2021 | 55.6% of Curve 2020 |
Estimated approximate effects on the defined benefit obligation | ||||||||
2021 | 2020 | |||||||
Demographic actuarial assumptions | ||||||||
10% increase in mortality rates | (100 | ) | (110 | ) | ||||
10% decrease in mortality rates | 112 | 124 | ||||||
Financial actuarial assumptions | ||||||||
100 basis points increase in discount rate | (622 | ) | (703 | ) | ||||
100 basis points decrease in discount rate | 849 | 977 | ||||||
100 basis points increase in salary increase rate | 0- | - | ||||||
25 basis points increase in indexation | 187 | 213 | ||||||
25 basis points decrease in indexation | (170 | ) | (192 | ) |
![]() |
Annual Report on Form 20-F 2023 | 287 |
![]() | About Aegon Governance and risk management Financial information | |||
Actuarial assumptions used to determine defined benefit obligations at year-end | 2021 | 2020 | ||||||||||||||
Actuarial assumptions used to determine defined benefit obligations at year-end | ||||||||||||||||
Actuarial assumptions used to determine defined benefit obligations at year-end | ||||||||||||||||
Actuarial assumptions used to determine defined benefit obligations at year-end | 2023 | 2022 | ||||||||||||||
Demographic actuarial assumptions | ||||||||||||||||
Demographic actuarial assumptions | ||||||||||||||||
Demographic actuarial assumptions | ||||||||||||||||
Demographic actuarial assumptions | ||||||||||||||||
Mortality | UK mortality table 1) | UK mortality table 2) | ||||||||||||||
Mortality | ||||||||||||||||
Mortality | ||||||||||||||||
Mortality | UK mortality table | 1) | UK mortality table | 2) | ||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Financial actuarial assumptions | ||||||||||||||||
Discount rate | 1.79% | 1.45% | ||||||||||||||
Discount rate | ||||||||||||||||
Discount rate | ||||||||||||||||
Discount rate | 4.79 | % | 4.96 | % | ||||||||||||
Price inflation | 3.34% | 2.95% | ||||||||||||||
Price inflation | ||||||||||||||||
Price inflation | ||||||||||||||||
Price inflation | 3.10 | % | 3.20 | % |
1 | Club Vita tables based on analysis of Scheme membership CMI |
2 | Club Vita tables based on analysis of Scheme membership CMI |
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Estimated approximate effects on the defined benefit obligation | ||||||||||||||
Estimated approximate effects on the defined benefit obligation | ||||||||||||||
2023 | 2022 | |||||||||||||
2021 | 2020 | |||||||||||||
Demographic actuarial assumptions | ||||||||||||||
Demographic actuarial assumptions | ||||||||||||||
10% increase in mortality rates | ||||||||||||||
10% increase in mortality rates | (55 | ) | (55 | ) | (20) | (19 | ) | |||||||
10% decrease in mortality rates | 62 | 63 | ||||||||||||
10% decrease in mortality rates | 23 | 22 | ||||||||||||
Financial actuarial assumptions | ||||||||||||||
Financial actuarial assumptions | ||||||||||||||
100 basis points increase in discount rate | (322 | ) | (330 | ) | ||||||||||
100 basis points increase in discount rate | (131) | (130 | ) | |||||||||||
100 basis points decrease in discount rate | ||||||||||||||
100 basis points decrease in discount rate | 433 | 448 | 166 | 164 | ||||||||||
100 basis points increase in price inflation | 202 | 172 | ||||||||||||
100 basis points increase in price inflation | 62 | 55 | ||||||||||||
100 basis points decrease in price inflation | (237 | ) | (316 | ) | ||||||||||
100 basis points decrease in price inflation | (128) | (113 | ) |
Notes to the consolidated financial statements Note 33 | ||||
Target allocation of plan assets for benefit plans for the next | ||||
Equity instruments | ||||
Debt instruments | 83.9% |
Actuarial assumptions used to determine defined benefit obligations at year-end | 2023 | |
Demographic actuarial assumptions | ||
Mortality | AEGON 2023 1) | |
Financial actuarial assumptions | ||
Discount rate | 3.42% | |
Price inflation | 2.36% |
1 | During 2023 the mortality table is adjusted, based on experience adjustments. |
Annual Report on Form 20-F 2023 | 289 |
![]() | About Aegon Governance and risk management Financial information | |||
Estimated approximate effects on the defined benefit obligation | ||||
Demographic actuarial assumptions | ||||
10% increase in mortality rates | (1 | ) | ||
10% decrease in mortality rates | 1 | |||
Financial actuarial assumptions | ||||
100 basis points increase in discount rate | (14 | ) | ||
100 basis points decrease in discount rate | 18 |
2021 | 2020 | |||||||
Deferred tax assets | 131 | 101 | ||||||
Deferred tax liabilities | 1,559 | 1,424 | ||||||
Total net deferred tax liability / (asset) | 1,428 | 1,323 | ||||||
Deferred tax assets comprise temporary differences on: | 2021 | 2020 | ||||||
Financial assets | (7 | ) | 13 | |||||
Insurance and investment contracts | (8 | ) | (5 | ) | ||||
Deferred expenses, VOBA and other intangible assets | (133 | ) | (110 | ) | ||||
Defined benefit plans | 3 | - | ||||||
Tax losses and credits carried forward | 264 | 321 | ||||||
Other | 11 | (118 | ) | |||||
At December 31 | 131 | 101 |
Deferred tax | 2023 | 2022 | ||||||
Deferred tax assets | 2,350 | 2,433 | ||||||
Deferred tax liabilities | (57 | ) | (30 | ) | ||||
On December 31 | 2,293 | 2,403 |
Deferred tax assets comprise temporary differences on: | 2023 | 2022 | ||||||
Real estate | (2 | ) | (15 | ) | ||||
Financial assets | 803 | 1,569 | ||||||
Insurance and investment contracts | (599 | ) | (1,416 | ) | ||||
Deferred expenses, VOBA and other intangible assets | 539 | 573 | ||||||
Defined benefit plans | 214 | 196 | ||||||
Tax losses and credits carried forward | 1,112 | 1,287 | ||||||
Other | 283 | 239 | ||||||
On December 31 | 2,350 | 2,433 |
Deferred tax liabilities comprise temporary differences on: | 2023 | 2022 | ||||||
Financial assets | (6 | ) | (6 | ) | ||||
Insurance and investment contracts | 62 | 33 | ||||||
Deferred expenses, VOBA and other intangible assets | 2 | - | ||||||
Other | (1 | ) | 3 | |||||
On December 31 | 57 | 30 |
![]() | Notes to the consolidated financial statements Note | |||
Deferred tax liabilities comprise temporary differences on: | 2021 | 2020 | ||||||
Real estate | 776 | 663 | ||||||
Financial assets | 1,816 | 2,169 | ||||||
Insurance and investment contracts | (1,410 | ) | (1,539 | ) | ||||
Deferred expenses, VOBA and other intangible assets | 1,573 | 1,323 | ||||||
Defined benefit plans | (151 | ) | (206 | ) | ||||
Tax losses and credits carried forward | (754 | ) | (502 | ) | ||||
Other | (291 | ) | (484 | ) | ||||
At December 31 | 1,559 | 1,424 |
Real estate | Financial assets | Insurance and investment contracts | Deferred expenses, VOBA and other intangible assets | Defined benefit plans | Tax losses and credits carried forward | Other | Total | |||||||||||||||||||||||||
At January 1, 2021 | 663 | 2,156 | (1,533 | ) | 1,433 | (206 | ) | (823 | ) | (366 | ) | 1,323 | ||||||||||||||||||||
Charged to income statement | 113 | (113 | ) | 217 | 162 | (32 | ) | (140 | ) | 54 | 260 | |||||||||||||||||||||
Charged to OCI | (1 | ) | (359 | ) | 0 | - | 100 | - | (1 | ) | (261 | ) | ||||||||||||||||||||
Net exchange differences | 1 | 167 | (86 | ) | 112 | (15 | ) | (56 | ) | (20 | ) | 103 | ||||||||||||||||||||
Transfer (to)/from current income tax | - | - | - | - | - | 2 | - | 2 | ||||||||||||||||||||||||
Transfer (to) /from other headings | - | (29 | ) | - | - | - | (1 | ) | 30 | - | ||||||||||||||||||||||
At December 31, 2021 | 776 | 1,823 | (1,402 | ) | 1,706 | (154 | ) | (1,018 | ) | (303 | ) | 1,428 | ||||||||||||||||||||
At January 1, 2020 | 644 | 1,474 | (1,470 | ) | 1,774 | (256 | ) | (734 | ) | (397 | ) | 1,036 | ||||||||||||||||||||
Acquisitions / Additions | - | - | - | 2 | - | - | - | 2 | ||||||||||||||||||||||||
Charged to income statement | 20 | 289 | (102 | ) | (213 | ) | 169 | (13 | ) | (67 | ) | 81 | ||||||||||||||||||||
Charged to OCI | 2 | 597 | - | - | (140 | ) | - | 4 | 464 | |||||||||||||||||||||||
Net exchange differences | (3 | ) | (204 | ) | 105 | (130 | ) | 21 | 56 | 27 | (128 | ) | ||||||||||||||||||||
Transfer (to)/from current income tax | - | - | - | - | - | (132 | ) | - | (132 | ) | ||||||||||||||||||||||
Transfer (to)/from other headings | - | - | (66 | ) | - | - | - | 66 | - | |||||||||||||||||||||||
At December 31, 2020 | 663 | 2,156 | (1,533 | ) | 1,433 | (206 | ) | (823 | ) | (366 | ) | 1,323 |
Real estate | | Financial assets | | Insurance and investment contracts | | Deferred expenses, VOBA and other intangible assets | | Defined benefit plans | | Tax losses and credits carried forward | | Other | Total | |||||||||||||||||||
On January 1, 2023 | 15 | (1,574 | ) | 1,449 | (573 | ) | (196 | ) | (1,287 | ) | (235 | ) | (2,403 | ) | ||||||||||||||||||
Charged to income statement | (12 | ) | 170 | (479 | ) | 12 | 6 | 49 | 51 | (204 | ) | |||||||||||||||||||||
Charged to OCI | - | 436 | (271 | ) | - | (31 | ) | - | - | 134 | ||||||||||||||||||||||
Net exchange differences | - | 38 | (32 | ) | 19 | 7 | 26 | 18 | 76 | |||||||||||||||||||||||
Disposal of a business | - | 2 | (4 | ) | - | - | (8 | ) | 2 | (8 | ) | |||||||||||||||||||||
Transfers to disposal groups | - | - | - | - | - | (1 | ) | 1 | - | |||||||||||||||||||||||
Transfer to/from other headings | - | 118 | - | - | - | - | (118 | ) | - | |||||||||||||||||||||||
Transfer to/from current income tax | - | - | - | - | - | 109 | - | 109 | ||||||||||||||||||||||||
Other | - | - | (1 | ) | 5 | - | (1 | ) | (2 | ) | 2 | |||||||||||||||||||||
On December 31, 2023 | 2 | (809 | ) | 661 | (537 | ) | (214 | ) | (1,112 | ) | (284 | ) | (2,293 | ) | ||||||||||||||||||
On January 1, 2022 | 776 | 3,336 | (4,452 | ) | (448 | ) | (154 | ) | (988 | ) | (45 | ) | (1,974 | ) | ||||||||||||||||||
Charged to income statement | (75 | ) | (2,928 | ) | 3,380 | (217 | ) | (191 | ) | 180 | (105 | ) | 45 | |||||||||||||||||||
Charged to OCI | - | (2,770 | ) | 2,256 | - | 252 | - | (56 | ) | (319 | ) | |||||||||||||||||||||
Net exchange differences | 1 | 139 | (163 | ) | (28 | ) | (12 | ) | (24 | ) | (22 | ) | (109 | ) | ||||||||||||||||||
Disposal of a business | (1 | ) | 1 | (2 | ) | - | - | - | (3 | ) | (5 | ) | ||||||||||||||||||||
Transfers to disposal groups | (685 | ) | 841 | 306 | (1 | ) | (94 | ) | (454 | ) | 26 | (61 | ) | |||||||||||||||||||
Transfer to/from other headings | - | (194 | ) | 122 | 121 | 3 | (27 | ) | (26 | ) | (1 | ) | ||||||||||||||||||||
Transfer to/from current income tax | - | - | - | - | - | 25 | - | 25 | ||||||||||||||||||||||||
Other | - | - | - | - | - | - | (4 | ) | (4 | ) | ||||||||||||||||||||||
On December 31, 2022 | 15 | (1,574 | ) | 1,449 | (573 | ) | (196 | ) | (1,287 | ) | (235 | ) | (2,403 | ) |
Gross amounts 1) | Not recognized deferred tax assets | |||||||||||||||||||||||||||||||
Gross amounts 1) | Not recognized deferred tax assets | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
< 5 years | 62 | 71 | 15 | 18 | ||||||||||||||||||||||||||||
< 5 years | ||||||||||||||||||||||||||||||||
< 5 years | ||||||||||||||||||||||||||||||||
< 5 years | 28 | 58 | 13 | 16 | ||||||||||||||||||||||||||||
≥ 5 – 10 years | ||||||||||||||||||||||||||||||||
≥ 5 – 10 years | ||||||||||||||||||||||||||||||||
≥ 5 – 10 years | ||||||||||||||||||||||||||||||||
≥ 5 – 10 years | 24 | 12 | 4 | 4 | 1 | 7 | (0 | ) | 2 | |||||||||||||||||||||||
≥ 10 – 15 years | 0 | 18 | 55 | 57 | ||||||||||||||||||||||||||||
≥ 10 – 15 years | ||||||||||||||||||||||||||||||||
≥ 10 – 15 years | ||||||||||||||||||||||||||||||||
≥ 10 – 15 years | - | - | 65 | 59 | ||||||||||||||||||||||||||||
≥ 15 – 20 years | ||||||||||||||||||||||||||||||||
≥ 15 – 20 years | ||||||||||||||||||||||||||||||||
≥ 15 – 20 years | ||||||||||||||||||||||||||||||||
≥ 15 – 20 years | 0 | 4 | 0 | - | - | - | - | - | ||||||||||||||||||||||||
Indefinitely | 598 | 514 | 151 | 114 | ||||||||||||||||||||||||||||
At December 31 | 684 | 619 | 224 | 192 | ||||||||||||||||||||||||||||
Indefinitely | ||||||||||||||||||||||||||||||||
Indefinitely | ||||||||||||||||||||||||||||||||
Indefinitely | 939 | 651 | 231 | 169 | ||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||
On December 31 | ||||||||||||||||||||||||||||||||
On December 31 | 969 | 716 | 308 | 246 |
1 | The gross value of state tax loss carry forward is not summarized in the disclosure, due to the fact that the United States files in different state jurisdictions with various applicable tax rates and apportionment rules |
Annual Report on Form 20-F 2023 | 291 |
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Gross amounts | Deferred tax assets | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Deferred corporate income tax asset dependent on retaining bond and similar investments until the earlier of market recovery or maturity | 4,729 | 6,166 | 993 | 1,295 | ||||||||||||
Deferred corporate income tax asset dependent on future taxable profits | 1,717 | 27 | 362 | 7 | ||||||||||||
On December 31 | 6,446 | 6,193 | 1,355 | 1,302 |
2021 | 2020 | |||||||
Payables due to policyholders | 1,229 | 1,135 | ||||||
Payables due to brokers and agents | 467 | 399 | ||||||
Payables out of reinsurance | 1,384 | 1,218 | ||||||
Social security and taxes payable | 145 | 110 | ||||||
Income tax payable | 4 | 2 | ||||||
Investment creditors | 1,103 | 1,068 | ||||||
Cash collateral on derivative transactions | 2,708 | 6,118 | ||||||
Cash collateral on securities lended | 2,171 | 2,053 | ||||||
Cash collateral - other | 76 | 74 | ||||||
Repurchase agreements | 821 | 962 | ||||||
Short term deposits | 0 | 105 | ||||||
Commercial paper | 0 | 72 | ||||||
Lease liabilities | 252 | 266 | ||||||
Other creditors | 2,556 | 3,100 | ||||||
At December 31 | 12,916 | 16,685 | ||||||
Current | 12,233 | 16,111 | ||||||
Non-current | 683 | 575 |
2023 | 2022 | |||||||
Payables due to policyholders | 1,632 | 684 | ||||||
Payables due to brokers and agents | 482 | 454 | ||||||
Social security and taxes payable | 59 | 49 | ||||||
Income tax payable | 1 | 10 | ||||||
Investment creditors | 995 | 970 | ||||||
Cash collateral on derivative transactions | 964 | 2,483 | ||||||
Cash collateral on securities lent | 2,357 | 2,417 | ||||||
Cash collateral - other | 68 | 64 | ||||||
Repurchase agreements | 28 | 107 | ||||||
Lease liabilities | 205 | 210 | ||||||
Other creditors | 1,599 | 2,828 | ||||||
On December 31 | 8,390 | 10,278 | ||||||
Current | 8,210 | 10,069 | ||||||
Non-current | 180 | 208 |
2021 | 2020 | |||||||
Accrued interest | 251 | 241 | ||||||
Accrued expenses | 285 | 210 | ||||||
At December 31 | 537 | 451 |
2023 | 2022 | |||||||
Accrued interest | 47 | 129 | ||||||
Accrued expenses | 281 | 243 | ||||||
On December 31 | 328 | 372 |
Notes to the consolidated financial statements Note 37 | ||||
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December 31, 2023 | 1) | December 31, 2022 | ||||||||||||||
December 31, 2021 1) | December 31, 2020 | |||||||||||||||
US RBC ratio | 426% | 432% | ||||||||||||||
NL Life Solvency II ratio | 186% | 159% | ||||||||||||||
US RBC ratio | ||||||||||||||||
US RBC ratio | ||||||||||||||||
US RBC ratio | 432 | % | 425% | |||||||||||||
Scottish Equitable Plc (UK) Solvency II ratio | 167% | 156% | ||||||||||||||
Scottish Equitable Plc (UK) Solvency II ratio | ||||||||||||||||
Scottish Equitable Plc (UK) Solvency II ratio | ||||||||||||||||
Scottish Equitable Plc (UK) Solvency II ratio | 187 | % | 169% |
1 | The |
Annual Report on Form 20-F 2023 | 293 |
![]() | About Aegon Governance and risk management Financial information | |||
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December 31, 2021 1) | December 31, 2020 | |||||||
Group Own Funds | 19,431 | 18,582 | ||||||
Group SCR | 9,226 | 9,473 | ||||||
Group Solvency II ratio | 211% | 196% |
December 31, 2023 | 1) | December 31, 2022 | ||||||
Group Eligible Own Funds | 14,250 | 16,332 | ||||||
Group SCR | 7,366 | 7,844 | ||||||
Group solvency ratio | 193% | 208% |
1 | The |
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2021 | 2020 | |||||||||||||||
Available Own Funds | Available Own Funds | Percentage total | Available Own Funds | Percentage total | ||||||||||||
Tier 1 (Unrestricted Tier 1 + Restricted Tier 1) | 16,409 | 84% | 15,542 | 84% | ||||||||||||
Unrestricted Tier 1 | 14,044 | 72% | 12,972 | 70% | ||||||||||||
Restricted Tier 1 | 2,364 | 12% | 2,571 | 14% | ||||||||||||
Junior Perpetual Capital Securities | 1,391 | 7% | 1,563 | 8% | ||||||||||||
Perpetual Cumulative Securities | 459 | 2% | 475 | 3% | ||||||||||||
Perpetual Contingent Convertible Securities | 515 | 3% | 532 | 3% | ||||||||||||
Tier 2 | 2,348 | 12% | 2,340 | 13% | ||||||||||||
Subordinated notes issued by AFC | 832 | 4% | 818 | 4% | ||||||||||||
Subordinated liabilities Aegon NV | 767 | 4% | 754 | 4% | ||||||||||||
Grandfathered subordinated notes | 750 | 4% | 768 | 4% | ||||||||||||
Tier 3 | 675 | 3% | 700 | 4% | ||||||||||||
Total Available Own Funds | 19,431 | 18,582 |
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2021 | 2020 | |||||||
IFRS Shareholders’ Equity | 23,813 | 22,018 | ||||||
IFRS adjustments for Other Equity instruments and non controlling interests | 2,559 | 2,644 | ||||||
IFRS Group Equity | 26,372 | 24,661 | ||||||
Solvency II revaluations & reclassifications | (9,096 | ) | (8,621 | ) | ||||
Transferability restrictions 1) | (1,772 | ) | (1,766 | ) | ||||
Excess of Assets over Liabilities | 15,504 | 14,274 | ||||||
Availability adjustments | 4,020 | 4,416 | ||||||
Fungibility adjustments | (93 | ) | (108 | ) | ||||
Available Own Funds | 19,431 | 18,582 |
1 | Adjusted valuation equity is defined as the sum of shareholders’ equity, non-controlling interests, long term incentive plans not yet vested and the tax adjusted contractual service margin. |
Notes to the consolidated financial statements Note 38 | ||||
∎ | Shareholders’ equity |
∎ | Non-controlling interests and Long Term Incentive Plans not yet |
∎ | Contractual service margin net of tax; and |
∎ | Total financial leverage. |
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Note | 2021 | 2020 | Note | 2023 | 2022 | |||||||||||||||||||
Total shareholders’ equity - based on IFRS as adopted by the EU | 30 | 24,282 | 22,815 | |||||||||||||||||||||
Total shareholders’ equity - based on IFRS as adopted by the EU | ||||||||||||||||||||||||
Total shareholders’ equity - based on IFRS as adopted by the EU | ||||||||||||||||||||||||
Total shareholders’ equity - based on IFRS as adopted by the EU | 25 | 7,475 | 8,815 | |||||||||||||||||||||
Non-controlling interests and Long Term Incentive Plans not yet vested | 31, SOFP 2) | 253 | 126 | |||||||||||||||||||||
Non-controlling interests and share options not yet exercised | ||||||||||||||||||||||||
Non-controlling interests and share options not yet exercised | ||||||||||||||||||||||||
Non-controlling interests and share options not yet exercised | ||||||||||||||||||||||||
Non-controlling interests and share options not yet exercised | 26, SOFP 2) | 203 | 243 | |||||||||||||||||||||
Revaluation reserves | 30 | (6,442 | ) | (7,480 | ) | |||||||||||||||||||
CSM after tax | ||||||||||||||||||||||||
CSM after tax | ||||||||||||||||||||||||
CSM after tax | ||||||||||||||||||||||||
CSM after tax | 29 | 6,403 | 7,227 | |||||||||||||||||||||
Adjusted shareholders’ equity | 18,093 | 15,461 | ||||||||||||||||||||||
Adjusted valuation equity | ||||||||||||||||||||||||
Adjusted valuation equity | ||||||||||||||||||||||||
Adjusted valuation equity | ||||||||||||||||||||||||
Adjusted valuation equity | 14,080 | 16,285 | ||||||||||||||||||||||
Perpetual contingent convertible securities | ||||||||||||||||||||||||
Perpetual contingent convertible securities | ||||||||||||||||||||||||
Perpetual contingent convertible securities | ||||||||||||||||||||||||
Perpetual contingent convertible securities | 31 | 500 | 500 | 26 | 500 | 500 | ||||||||||||||||||
Junior perpetual capital securities | 31 | 1,352 | 1,564 | |||||||||||||||||||||
Junior perpetual capital securities | ||||||||||||||||||||||||
Junior perpetual capital securities | ||||||||||||||||||||||||
Junior perpetual capital securities | 26 | 923 | 923 | |||||||||||||||||||||
Perpetual cumulative subordinated bonds | 31 | 454 | 454 | |||||||||||||||||||||
Perpetual cumulative subordinated bonds | ||||||||||||||||||||||||
Perpetual cumulative subordinated bonds | ||||||||||||||||||||||||
Perpetual cumulative subordinated bonds | 26 | 454 | 454 | |||||||||||||||||||||
Fixed floating subordinated notes | 32 | 1,396 | 1,345 | |||||||||||||||||||||
Subordinated Borrowings | ||||||||||||||||||||||||
Subordinated Borrowings | ||||||||||||||||||||||||
Subordinated Borrowings | ||||||||||||||||||||||||
Subordinated Borrowings | 27 | 2,244 | 2,295 | |||||||||||||||||||||
Fixed subordinated notes | 32 | 798 | 740 | |||||||||||||||||||||
Trust pass-through securities | ||||||||||||||||||||||||
Trust pass-through securities | ||||||||||||||||||||||||
Trust pass-through securities | ||||||||||||||||||||||||
Trust pass-through securities | 33 | 126 | 126 | 28 | 111 | 118 | ||||||||||||||||||
Currency revaluation other equity instruments 1) | 16 | (1 | ) | |||||||||||||||||||||
Currency revaluation other equity instruments 1) | ||||||||||||||||||||||||
Currency revaluation other equity instruments 1) | ||||||||||||||||||||||||
Currency revaluation other equity instruments 1) | 50 | 66 | ||||||||||||||||||||||
Hybrid leverage | 4,642 | 4,728 | ||||||||||||||||||||||
Hybrid leverage | ||||||||||||||||||||||||
Hybrid leverage | ||||||||||||||||||||||||
Hybrid leverage | 4,282 | 4,356 | ||||||||||||||||||||||
Senior debt 3) | 37 | 1,290 | 1,241 | |||||||||||||||||||||
Senior debt | ||||||||||||||||||||||||
Senior debt | ||||||||||||||||||||||||
Senior debt | ||||||||||||||||||||||||
Senior debt | 31 3) | 782 | 1,265 | |||||||||||||||||||||
Senior leverage | 1,290 | 1,241 | ||||||||||||||||||||||
Senior leverage | ||||||||||||||||||||||||
Senior leverage | ||||||||||||||||||||||||
Senior leverage | 782 | 1,265 | ||||||||||||||||||||||
Total gross financial leverage | ||||||||||||||||||||||||
Total gross financial leverage | ||||||||||||||||||||||||
Total gross financial leverage | ||||||||||||||||||||||||
Total gross financial leverage | 5,932 | 5,969 | 5,064 | 5,621 | ||||||||||||||||||||
Total capitalization | ||||||||||||||||||||||||
Total capitalization | ||||||||||||||||||||||||
Total capitalization | ||||||||||||||||||||||||
Total capitalization | 24,008 | 21,430 | 19,144 | 21,906 | ||||||||||||||||||||
Gross financial leverage ratio | ||||||||||||||||||||||||
Gross financial leverage ratio | ||||||||||||||||||||||||
Gross financial leverage ratio | ||||||||||||||||||||||||
Gross financial leverage ratio | 24.7% | 27.9% | 26.5% | 25.7% | ||||||||||||||||||||
Fixed Charge Coverage | 9.3 x | 8.3 x | ||||||||||||||||||||||
Fixed Charge Coverage | ||||||||||||||||||||||||
Fixed Charge Coverage | ||||||||||||||||||||||||
Fixed Charge Coverage | 6.5 x | 8.7 x |
1 | Other equity instruments that are denominated in foreign currencies are, for purpose of calculating hybrid leverage, revalued to the period-end exchange rate. |
2 | Non-controlling interests are disclosed in the statement of financial position. |
3 | Senior debt for the gross financial leverage calculation also contains swaps for an amount of EUR |
Distributable items | 2021 | 2020 | ||||||
Equity attributable to shareholders based on IFRS as adopted by the EU | 24,282 | 22,815 | ||||||
Non-distributable items: | ||||||||
Share capital | (321 | ) | (320 | ) | ||||
Legal reserves 1) | (9,868 | ) | (9,697 | ) | ||||
At December 31 | 14,093 | 12,797 |
Distributable reserves | 2021 | 2020 | ||||||
Reserves available for financial surpervision purposes | 19,431 | 18,582 | ||||||
Solvency requirement under the Financial Supervision Act | 9,226 | 9,473 | ||||||
Total distributable reserves on the basis of solvency requirements | 10,205 | 9,109 |
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Annual Report on Form 20-F 2023 | 295 |
![]() | About Aegon Governance and risk management Financial information | |||
2023 | ||||||||||||||||
Fair value hierarchy | Level I | Level II | Level III | Total | ||||||||||||
Assets measured at FVOCI | ||||||||||||||||
Shares | 5 | - | 4 | 10 | ||||||||||||
Debt securities | 5,644 | 41,031 | 516 | 47,191 | ||||||||||||
Money market and other short-term investments | 3,028 | 97 | 9 | 3,135 | ||||||||||||
Other investments at fair value | - | 29 | - | 29 | ||||||||||||
8,678 | 41,157 | 530 | 50,364 | |||||||||||||
Financial assets measured at fair value through profit or loss | ||||||||||||||||
Shares | 153 | 43 | 94 | 291 | ||||||||||||
Debt securities | 302 | 2,009 | 86 | 2,396 | ||||||||||||
Money market and other short-term investments | 4,041 | 173 | - | 4,215 | ||||||||||||
Other investments at fair value | 1 | 773 | 4,237 | 5,011 | ||||||||||||
Derivatives | 47 | 1,374 | 8 | 1,429 | ||||||||||||
Investments in real estate | - | - | 55 | 55 | ||||||||||||
Investments in real estate for policyholders | - | - | 433 | 433 | ||||||||||||
Investments where the policyholder bears the risk | 90,027 | 103,022 | 342 | 193,390 | ||||||||||||
94,570 | 107,395 | 5,255 | 207,220 | |||||||||||||
Revalued amounts | ||||||||||||||||
Real estate held for own use | - | - | 61 | 61 | ||||||||||||
Total financial assets measured at fair value | 103,248 | 148,551 | 5,846 | 257,645 | ||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | - | 65,044 | - | 65,044 | ||||||||||||
Derivatives | 39 | 2,434 | 6 | 2,479 | ||||||||||||
Total financial liabilities measured at fair value | 39 | 67,478 | 6 | 67,523 |
Notes to the consolidated financial statements Note 38 |
Level I | Level II | Level III | Total 2021 | |||||||||||||
Assets carried at fair value | ||||||||||||||||
Available-for-sale | ||||||||||||||||
Shares | 84 | 75 | 191 | 350 | ||||||||||||
Debt securities | 25,166 | 68,131 | 603 | 93,899 | ||||||||||||
Money market and other short-term instruments | 1,204 | 3,586 | - | 4,790 | ||||||||||||
Other investments at fair value | - | 246 | 599 | 844 | ||||||||||||
26,453 | 72,038 | 1,393 | 99,884 | |||||||||||||
Fair value through profit or loss | ||||||||||||||||
Shares | 85 | 237 | 1,343 | 1,665 | ||||||||||||
Debt securities | 130 | 3,161 | 5 | 3,296 | ||||||||||||
Money market and other short-term instruments | 18 | 102 | - | 120 | ||||||||||||
Other investments at fair value | 2 | 389 | 3,010 | 3,401 | ||||||||||||
Investments for account of policyholders 1) | 129,794 | 119,653 | 943 | 250,390 | ||||||||||||
Derivatives | 150 | 8,676 | 1 | 8,827 | ||||||||||||
Investments in real estate | - | - | 2,643 | 2,643 | ||||||||||||
Investments in real estate for policyholders | - | - | 563 | 563 | ||||||||||||
130,178 | 132,219 | 8,507 | 270,904 | |||||||||||||
Revalued amounts | ||||||||||||||||
Real estate held for own use | - | - | 185 | 185 | ||||||||||||
- | - | 185 | 185 | |||||||||||||
Total assets at fair value | 156,631 | 204,256 | 10,086 | 370,974 | ||||||||||||
Liabilities carried at fair value | ||||||||||||||||
Investment contracts for account of policyholders 2) | - | 71,249 | (6 | ) | 71,242 | |||||||||||
- | - | - | - | |||||||||||||
Derivatives | 39 | 7,162 | 3,437 | 10,639 | ||||||||||||
Total liabilities at fair value | 39 | 78,411 | 3,431 | 81,881 |
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Level I | Level II | Level III | Total 2020 | |||||||||||||
Assets carried at fair value | ||||||||||||||||
Available-for-sale | ||||||||||||||||
Shares | 90 | 82 | 173 | 345 | ||||||||||||
Debt securities | 28,300 | 64,914 | 467 | 93,681 | ||||||||||||
Money market and other short-term instruments | 832 | 3,726 | - | 4,558 | ||||||||||||
Other investments at fair value | - | 415 | 581 | 996 | ||||||||||||
29,222 | 69,136 | 1,221 | 99,580 | |||||||||||||
Fair value through profit or loss | ||||||||||||||||
Shares | 80 | 226 | 1,329 | 1,634 | ||||||||||||
Debt securities | 168 | 5,260 | 242 | 5,669 | ||||||||||||
Money market and other short-term instruments | 17 | 93 | - | 109 | ||||||||||||
Other investments at fair value | 1 | 470 | 2,174 | 2,645 | ||||||||||||
Investments for account of policyholders 1) | 118,057 | 104,635 | 1,012 | 223,705 | ||||||||||||
Derivatives | 34 | 13,930 | 22 | 13,986 | ||||||||||||
Investments in real estate | - | - | 2,385 | 2,385 | ||||||||||||
Investments in real estate for policyholders | - | - | 467 | 467 | ||||||||||||
118,356 | 124,613 | 7,631 | 250,600 | |||||||||||||
Revalued amounts | ||||||||||||||||
Real estate held for own use | - | - | 209 | 209 | ||||||||||||
- | - | 209 | 209 | |||||||||||||
Total assets at fair value | 147,578 | 193,750 | 9,061 | 350,389 | ||||||||||||
Liabilities carried at fair value | ||||||||||||||||
Investment contracts for account of policyholders 2) | - | 59,637 | (12 | ) | 59,625 | |||||||||||
Derivatives | 61 | 9,654 | 4,902 | 14,617 | ||||||||||||
Total liabilities at fair value | 61 | 69,291 | 4,890 | 74,242 |
2022 | ||||||||||||||||
Fair value hierarchy | Level I | Level II | Level III | Total | ||||||||||||
Assets measured at FVOCI | ||||||||||||||||
Shares | 5 | - | 4 | 10 | ||||||||||||
Debt securities | 6,353 | 45,073 | 181 | 51,607 | ||||||||||||
Money market and other short-term investments | 1,597 | 973 | 5 | 2,576 | ||||||||||||
Other investments at fair value | - | 31 | - | 31 | ||||||||||||
7,956 | 46,077 | 191 | 54,223 | |||||||||||||
Financial assets measured at fair value through profit or loss | ||||||||||||||||
Shares | 160 | 61 | 127 | 348 | ||||||||||||
Debt securities | 282 | 1,722 | 35 | 2,040 | ||||||||||||
Money market and other short-term investments | 2,084 | 957 | 1 | 3,042 | ||||||||||||
Other investments at fair value | 1 | 537 | 4,050 | 4,588 | ||||||||||||
Derivatives | 33 | 2,728 | 11 | 2,771 | ||||||||||||
Investments in real estate | - | - | 59 | 59 | ||||||||||||
Investments in real estate for policyholders | - | - | 443 | 443 | ||||||||||||
Investments where the policyholder bears the risk | 87,362 | 91,799 | 402 | 179,563 | ||||||||||||
89,922 | 97,804 | 5,128 | 192,855 | |||||||||||||
Revalued amounts | ||||||||||||||||
Real estate held for own use | - | - | 73 | 73 | ||||||||||||
Total financial assets measured at fair value | 97,878 | 143,881 | 5,392 | 247,151 | ||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | - | 55,631 | - | 55,631 | ||||||||||||
Derivatives | 51 | 5,111 | 12 | 5,175 | ||||||||||||
Total financial liabilities measured at fair value | 51 | 60,742 | 12 | 60,806 |
Total 2021 | Total 2020 | |||||||||||||||
Transfers Level I to Level II | Transfers Level II to Level I | Transfers Level I to Level II | Transfers Level II to Level I | |||||||||||||
Assets carried at fair value | ||||||||||||||||
Available-for-sale | ||||||||||||||||
Debt securities | 44 | 32 | - | 46 | ||||||||||||
44 | 32 | - | 46 | |||||||||||||
Total assets at fair value | 44 | 32 | - | 46 | ||||||||||||
Total Liabilities carried at fair value | - | - | - | - |
2023 | 2022 | |||||||||||||||
Significant transfers between level I, level II and level III | Transfers Level I to Level II | Transfers Level II to Level I | Transfers Level I to Level II | Transfers Level II to Level I | ||||||||||||
Assets measured at FVOCI | ||||||||||||||||
Debt securities | - | 141 | 23 | 5 | ||||||||||||
Money market and other short-term investments | 45 | 245 | - | 460 | ||||||||||||
45 | 386 | 23 | 464 | |||||||||||||
Financial assets measured at fair value through profit or loss | ||||||||||||||||
Shares | - | - | 10 | 128 | ||||||||||||
Money market and other short-term investments | - | 795 | - | 275 | ||||||||||||
Investments where the policyholder bears the risk | 1 | - | - | 28 | ||||||||||||
1 | 795 | 10 | 431 | |||||||||||||
Revalued amounts | ||||||||||||||||
Real estate held for own use | - | - | - | - | ||||||||||||
Total financial assets measured at fair value | 46 | 1,182 | 34 | 895 |
Annual Report on Form 20-F 2023 | 297 |
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Assets carried at fair value | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets carried at fair value | 2023 | Disposal of a business | | Total gains / losses in income statement | 1) | Total gains / losses in OCI 2) | | Purchases | Sales | Settle- ments | Net exchange difference | | Reclas- sification | Transfers from levels I and II | | Transfers to levels I and II | | Transfers to disposal groups | | On December 31, 2023 | | Total unrealized gains and losses for the period recorded in the P&L for instruments held on December 31, 2023 3) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | 173 | - | - | 1 | 3 | 30 | (26 | ) | (0 | ) | 11 | - | - | - | - | 191 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | 4 | - | - | - | - | - | - | - | - | - | - | - | 4 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 467 | - | - | (1 | ) | 6 | 228 | (29 | ) | (46 | ) | 22 | - | 203 | (246 | ) | - | 603 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term instruments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 181 | - | (1 | ) | 11 | 263 | (124 | ) | (15 | ) | (12 | ) | - | 214 | (1 | ) | - | 516 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | 5 | - | - | 4 | - | - | - | - | - | - | - | - | 9 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
191 | - | (1 | ) | 15 | 263 | (124 | ) | (15 | ) | (12 | ) | - | 214 | (1 | ) | - | 530 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | 127 | - | 2 | - | 12 | (47 | ) | - | (4 | ) | - | 5 | - | - | 94 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 35 | - | 17 | - | 38 | (43 | ) | (4 | ) | (2 | ) | - | 46 | - | - | 86 | (8 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | 1 | - | - | - | - | - | - | - | - | - | (1 | ) | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | 581 | - | - | (113 | ) | 7 | 111 | (24 | ) | (6 | ) | 43 | - | - | - | - | 599 | - | 4,050 | - | (65 | ) | - | 652 | (254 | ) | - | (144 | ) | - | - | - | - | 4,237 | (70 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,221 | - | - | (114 | ) | 16 | 368 | (80 | ) | (52 | ) | 77 | - | 203 | (246 | ) | - | 1,393 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | 11 | - | (3 | ) | - | - | (1 | ) | - | - | - | - | - | - | 8 | (3 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value through profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | 1,329 | - | - | 150 | - | 179 | (316 | ) | 1 | 1 | - | - | - | - | 1,343 | 147 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 242 | - | - | (1 | ) | - | 124 | (361 | ) | (0 | ) | - | - | - | - | - | 5 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | 2,173 | - | - | 796 | - | 492 | (638 | ) | - | 186 | - | - | - | - | 3,010 | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments for account of policyholders | 1,012 | - | - | 206 | (0 | ) | (198 | ) | (93 | ) | - | 22 | - | - | (7 | ) | - | 943 | 162 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | 22 | - | - | (17 | ) | - | - | (4 | ) | - | - | - | - | - | - | 1 | (10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | 2,385 | - | - | 253 | - | 48 | (60 | ) | - | 3 | 14 | - | - | - | 2,643 | 253 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | 59 | - | 2 | - | 2 | (6 | ) | - | (1 | ) | - | - | - | - | 55 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate for policyholders | 467 | - | - | 46 | - | 60 | (43 | ) | - | 32 | - | - | - | - | 563 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate for policyholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate for policyholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate for policyholders | 443 | - | (52 | ) | - | 42 | (12 | ) | - | 11 | - | - | - | - | 433 | (42 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk | 402 | - | (37 | ) | - | 37 | (59 | ) | - | (1 | ) | - | - | - | - | 342 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7,631 | - | - | 1,433 | (0 | ) | 705 | (1,514 | ) | - | 245 | 14 | - | (7 | ) | - | 8,507 | 618 | 5,128 | - | (136 | ) | - | 782 | (422 | ) | (4 | ) | (142 | ) | - | 51 | (2 | ) | - | 5,255 | (120 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revalued amounts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revalued amounts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revalued amounts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revalued amounts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held for own use | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held for own use | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held for own use | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held for own use | 209 | - | - | (16 | ) | (4 | ) | 6 | - | (0 | ) | 5 | (14 | ) | - | - | - | 185 | 1 | 73 | - | (3 | ) | (2 | ) | (1 | ) | - | - | (2 | ) | - | - | - | - | 64 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
209 | - | - | (16 | ) | (4 | ) | 6 | - | (0 | ) | 5 | (14 | ) | - | - | - | 185 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
73 | - | (3 | ) | (2 | ) | (1 | ) | - | - | (2 | ) | - | - | - | - | 64 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value | 9,061 | - | - | 1,303 | 12 | 1,079 | (1,594 | ) | (52 | ) | 326 | - | 203 | (253 | ) | - | 10,086 | 619 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts for account of policyholders | (12 | ) | - | - | (1 | ) | - | (361 | ) | 366 | - | 2 | - | - | - | - | (6 | ) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets measured at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets measured at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets measured at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets measured at fair value | 5,392 | - | (141 | ) | 13 | 1,044 | (546 | ) | (19 | ) | (157 | ) | - | 265 | (3 | ) | - | 5,849 | (120 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | 4,902 | - | - | (1,627 | ) | - | - | (14 | ) | - | 176 | - | - | - | - | 3,437 | 607 | 12 | - | (6 | ) | - | - | - | - | - | - | - | - | - | 6 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4,890 | - | - | (1,628 | ) | - | (361 | ) | 352 | - | 178 | - | - | - | - | 3,431 | 610 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | - | (6 | ) | - | - | - | - | - | - | - | - | - | 6 | - |
1 | Includes impairments and movements related to fair value hedges. Gains and losses are recorded in the line item Results from financial transactions of the income statement. |
2 | Total gains and losses are recorded in line |
3 | Total gains / (losses) for the period during which the financial instrument was in Level III. |
Notes to the consolidated financial statements Note 38 | ||||
Assets carried at fair value | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets carried at fair value | 2022 | Disposal of a business | | Total gains / losses in income statement | 1) | Total gains / losses in OCI 2) | | Purchases | Sales | Settle- ments | Net exchange difference | | Reclas- sification | Transfers from levels I and II | | Transfers to levels I and II | | Transfers to disposal groups | On December 31, 2022 | | Total unrealized gains and losses for the period recorded in the P&L for instruments held on December 31, 2022 3) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | 157 | - | - | (27 | ) | 24 | 49 | (15 | ) | (1 | ) | (12 | ) | - | - | (2 | ) | - | 173 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | 4 | - | - | - | - | - | - | - | - | - | - | - | 4 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 1,074 | - | - | 3 | (19 | ) | 155 | (11 | ) | (34 | ) | (32 | ) | - | 26 | (695 | ) | - | 467 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term instruments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 365 | - | (1 | ) | (73 | ) | 98 | (47 | ) | (16 | ) | 23 | - | 37 | (207 | ) | - | 181 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | 28 | - | - | (23 | ) | - | - | - | - | - | - | - | - | 5 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
398 | - | (1 | ) | (95 | ) | 98 | (47 | ) | (16 | ) | 23 | - | 37 | (207 | ) | - | 191 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FVPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | 1,530 | - | 137 | - | 191 | (365 | ) | - | 12 | - | - | - | (1,378 | ) | 127 | (41 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 242 | - | (11 | ) | - | 45 | (3 | ) | (5 | ) | 3 | - | 2 | (140 | ) | (98 | ) | 35 | (12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term investments | - | - | 1 | - | - | - | - | - | - | - | - | - | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | 22,727 | - | (4,529 | ) | - | 1,802 | (1,825 | ) | - | - | - | - | - | (18,175 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | 482 | - | - | (140 | ) | 28 | 302 | (19 | ) | (22 | ) | (50 | ) | - | - | - | - | 581 | - | 3,548 | - | 247 | - | 627 | (587 | ) | (14 | ) | 229 | - | - | - | - | 4,050 | 159 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,712 | - | - | (163 | ) | 34 | 505 | (45 | ) | (56 | ) | (94 | ) | - | 26 | (697 | ) | - | 1,221 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | 1 | - | 10 | - | - | - | - | - | - | - | - | - | 11 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value through profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | 1,401 | - | - | (132 | ) | - | 160 | (97 | ) | - | (3 | ) | - | - | - | - | 1,329 | (98 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 4 | - | - | - | - | 276 | (37 | ) | - | - | - | - | - | - | 242 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | 2,049 | - | - | 122 | - | 432 | (250 | ) | - | (184 | ) | - | 16 | (13 | ) | - | 2,173 | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments for account of policyholders | 1,805 | - | - | 3 | - | (168 | ) | (607 | ) | - | (20 | ) | - | - | - | - | 1,012 | 37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | 56 | - | - | (33 | ) | - | - | - | - | - | - | - | - | - | 22 | (32 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | 2,901 | - | - | 65 | - | 150 | (717 | ) | - | (14 | ) | - | - | - | - | 2,385 | 196 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate | 2,643 | - | (51 | ) | - | 42 | (40 | ) | - | 3 | 7 | - | - | (2,545 | ) | 59 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate for policyholders | 586 | - | - | (36 | ) | - | 4 | (56 | ) | - | (31 | ) | - | - | - | - | 467 | (52 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate for policyholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate for policyholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate for policyholders | 563 | - | (61 | ) | - | 10 | (42 | ) | - | (27 | ) | - | - | - | - | 443 | (69 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments where the policyholder bears the risk | 895 | - | 43 | - | (468 | ) | 876 | - | (14 | ) | - | 2 | - | (932 | ) | 402 | (55 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8,802 | - | - | (11 | ) | - | 854 | (1,765 | ) | - | (251 | ) | - | 16 | (13 | ) | - | 7,631 | 51 | 32,149 | - | (4,214 | ) | - | 2,249 | (1,986 | ) | (19 | ) | 205 | 7 | 4 | (140 | ) | (23,128 | ) | 5,128 | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revalued amounts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revalued amounts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revalued amounts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revalued amounts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held for own use | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held for own use | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held for own use | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held for own use | 208 | - | - | (9 | ) | 18 | 5 | (5 | ) | - | (8 | ) | - | - | - | - | 209 | - | 185 | (23 | ) | (3 | ) | - | (1 | ) | (8 | ) | - | 4 | (5 | ) | - | - | (76 | ) | 73 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
208 | - | - | (9 | ) | 18 | 5 | (5 | ) | - | (8 | ) | - | - | - | - | 209 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
185 | (23 | ) | (3 | ) | - | (1 | ) | (8 | ) | - | 4 | (5 | ) | - | - | (76 | ) | 73 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value | 10,722 | - | - | (183 | ) | 51 | 1,364 | (1,815 | ) | (57 | ) | (354 | ) | - | 42 | (710 | ) | - | 9,061 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts for account of policyholders | 197 | - | - | 9 | - | (200 | ) | (16 | ) | - | (3 | ) | - | - | - | - | (12 | ) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets measured at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets measured at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets measured at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets measured at fair value | 32,732 | (24 | ) | (4,218 | ) | (95 | ) | 2,346 | (2,042 | ) | (34 | ) | 232 | 2 | 41 | (347 | ) | (23,203 | ) | 5,392 | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | (33 | ) | - | (23 | ) | - | (559 | ) | 721 | - | - | - | 1 | - | (105 | ) | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | 3,081 | - | - | 2,073 | (9 | ) | - | (15 | ) | - | (228 | ) | - | - | - | - | 4,902 | 314 | 41 | - | (31 | ) | - | - | - | - | 3 | - | - | - | (1 | ) | 12 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,278 | - | - | 2,082 | (9 | ) | (200 | ) | (31 | ) | - | (231 | ) | - | - | - | - | 4,890 | 321 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial liabilities measured at fair value | 8 | - | (54 | ) | - | (559 | ) | 721 | - | 3 | - | 1 | - | (106 | ) | 12 | - |
1 | Includes impairments and movements related to fair value hedges. Gains and losses are recorded in the line item Results from financial transactions of the income statement. |
2 | Total gains and losses are recorded in line |
3 | Total gains / (losses) for the period during which the financial instrument was in Level III. |
![]() |
Annual Report on Form 20-F 2023 | 299 |
![]() | About Aegon Governance and risk management Financial information | |||
Valuation technique 1) | Significant unobservable input 2) | December 31, 2023 | | Range (weighted average) | | December 31, 2022 | Range (weighted average) | | ||||||||||||||||||||||||||||||||
Valuation technique 1) | Significant unobservable input 2) | December 31, 2021 | Range (weighted average) | December 31, 2020 | Range (weighted average) | |||||||||||||||||||||||||||||||||||
Assets carried at fair value | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
Assets carried at fair value | ||||||||||||||||||||||||||||||||||||||||
Fair value through OCI | ||||||||||||||||||||||||||||||||||||||||
Fair value through OCI | ||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||
Net asset value | n.a. | 166 | n.a. | 136 | n.a. | |||||||||||||||||||||||||||||||||||
Net asset value | n.a. | - | n.a. | - | n.a. | |||||||||||||||||||||||||||||||||||
Other | n.a. | 25 | n.a. | 37 | n.a. | |||||||||||||||||||||||||||||||||||
191 | 173 | |||||||||||||||||||||||||||||||||||||||
Other | n.a. | 4 | n.a. | 4 | n.a. | |||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||
Broker quote | n.a. | 493 | n.a. | 374 | n.a. | |||||||||||||||||||||||||||||||||||
Broker quote | n.a. | 416 | n.a. | 33 | n.a. | |||||||||||||||||||||||||||||||||||
Discounted cash flow | Credit spread | - | n.a. | 29 | 2.38% | |||||||||||||||||||||||||||||||||||
Discounted cash flow | Constant Prepayment Rate | 5 | 21.43% | 6 | n.a. | Discounted cash flow | Constant Prepayment Rate | 2 | 1.81% | 2 | 40.53% | |||||||||||||||||||||||||||||
Discounted cash flow | Constant Prepayment Rate | 22 | 9.95% | 24 | 8.57% | |||||||||||||||||||||||||||||||||||
Discounted cash flow | Constant Prepayment Rate | - | ||||||||||||||||||||||||||||||||||||||
Other | n.a. | 82 | n.a. | 34 | n.a. | |||||||||||||||||||||||||||||||||||
603 | 467 | |||||||||||||||||||||||||||||||||||||||
Other | n.a. | 98 | n.a. | 147 | n.a. | |||||||||||||||||||||||||||||||||||
Other investments at fair value | ||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | ||||||||||||||||||||||||||||||||||||||||
Tax credit investments | Discounted cash flow | Discount rate | 541 | 7.09% | 517 | 6.55% | ||||||||||||||||||||||||||||||||||
Investment funds | ||||||||||||||||||||||||||||||||||||||||
Investment funds | Net asset value | n.a. | 3 | n.a. | 12 | n.a. | Net asset value | n.a. | - | n.a. | - | n.a. | ||||||||||||||||||||||||||||
Other | Other | n.a. | 56 | n.a. | 52 | n.a. | ||||||||||||||||||||||||||||||||||
Other | Other | n.a. | 9 | n.a. | 5 | n.a. | ||||||||||||||||||||||||||||||||||
599 | 581 | |||||||||||||||||||||||||||||||||||||||
At December 31 | 1,393 | 1,221 | ||||||||||||||||||||||||||||||||||||||
On December 31 | 530 | 191 | ||||||||||||||||||||||||||||||||||||||
Fair value through profit or loss | ||||||||||||||||||||||||||||||||||||||||
Fair value through profit or loss | ||||||||||||||||||||||||||||||||||||||||
Shares | Other | n.a. | 1,343 | n.a. | 1,329 | n.a. | ||||||||||||||||||||||||||||||||||
Shares | Net asset value | n.a. | 91 | n.a. | 126 | n.a. | ||||||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||||||||||||
Shares | Broker quote | n.a. | 4 | n.a. | 1 | n.a. | ||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||
Debt securities | Other | n.a. | 5 | n.a. | 3 | n.a. | Broker quote | n.a. | 80 | n.a. | 5 | n.a. | ||||||||||||||||||||||||||||
Debt securities | Broker quote | n.a. | - | n.a. | 239 | n.a. | ||||||||||||||||||||||||||||||||||
Debt securities | Discounted cash flow | Constant prepayment rate | - | 7.10% | - | 7.80% | ||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||
Debt securities | Other | n.a. | 6 | n.a. | 30 | n.a. | ||||||||||||||||||||||||||||||||||
1,348 | 1,571 | |||||||||||||||||||||||||||||||||||||||
Other investments at fair value | ||||||||||||||||||||||||||||||||||||||||
Other investments at fair value | ||||||||||||||||||||||||||||||||||||||||
Investment funds | Net asset value | n.a. | 2,944 | n.a. | 2,095 | n.a. | ||||||||||||||||||||||||||||||||||
Investment funds | Net asset value | n.a. | 3,532 | 3,439 | n.a. | |||||||||||||||||||||||||||||||||||
Tax credit investments | ||||||||||||||||||||||||||||||||||||||||
Tax credit investments | Discounted cash flow | Discount rate | 705 | 6.88% | 610 | 7.10% | ||||||||||||||||||||||||||||||||||
Other | Other | n.a. | 66 | n.a. | 79 | n.a. | ||||||||||||||||||||||||||||||||||
Other | Other | n.a. | - | - | n.a. | |||||||||||||||||||||||||||||||||||
3,010 | 2,174 | |||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||
Longevity swap | Discounted cash flow | Mortality | - | n.a. | 22 | n.a. | ||||||||||||||||||||||||||||||||||
- | 22 | |||||||||||||||||||||||||||||||||||||||
Total assets at fair value 3) | 5,750 | 7,582 | 4,947 | 4,403 | ||||||||||||||||||||||||||||||||||||
Liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||
Liabilities carried at fair value | ||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||
Embedded derivatives in insurance contracts | Discounted cash flow | Own credit spread | 3,437 | 0.23% | 4,902 | 0.25 | % | |||||||||||||||||||||||||||||||||
Embedded derivatives in insurance contracts | Discounted cash flow | Own credit spread | 3 | n.a | 8 | 0.45% | ||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
Other | Discounted cash flow | Other | 3 | n.a | 4 | n.a | ||||||||||||||||||||||||||||||||||
Total liabilities at fair value | 3,437 | 4,902 | 6 | 12 | - |
1 | Other in the table above (column Valuation technique) includes investments for which the fair value is uncorroborated and no broker quote is received. |
2 | Not applicable (n.a.) has been included when the unobservable inputs are not developed by the Group and are not reasonably available. Refer to the section Fair value measurement in this note for a detailed description of Aegon’s methods of determining fair value and the valuation techniques. |
3 | Investments |
Notes to the consolidated financial statements Note | ||||
December 31, 2021 | Effect of reasonably possible alternative assumptions (+/-) | December 31, 2020 | Effect of reasonably possible alternative assumptions (+/-) | |||||||||||||||||
Increase | Decrease | Increase | Decrease | |||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||
Embedded derivatives in insurance contracts | 3,437 | 39 | (39 | ) | 4,902 | 48 | (48) |
Carrying amount December 31, 2023 | Estimated fair value hierarchy | Total estimated fair value December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
2021 | Estimated fair value hierarchy | Total estimated | ||||||||||||||||||||||||||||||||||||||
Carrying amount December 31, 2021 | Level I | Level II | Level III | fair value December 31, 2021 | ||||||||||||||||||||||||||||||||||||
Level I | Level II | Level III | ||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans - held at amortized cost | 39,991 | - | 1 | 44,366 | 44,366 | |||||||||||||||||||||||||||||||||||
Mortgage loans - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans - held at amortized cost | 10,157 | - | 1 | 9,024 | 9,025 | |||||||||||||||||||||||||||||||||||
Private loans - held at amortized cost | 4,883 | - | 34 | 5,457 | 5,491 | |||||||||||||||||||||||||||||||||||
Other loans - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Other loans - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Other loans - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Other loans - held at amortized cost | 1,949 | 21 | 1,923 | 5 | 1,949 | 70 | 70 | 1 | - | 70 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Subordinated borrowings - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Subordinated borrowings - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Subordinated borrowings - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Subordinated borrowings - held at amortized cost | 2,194 | 1,567 | 872 | - | 2,438 | 2,244 | 1,392 | 730 | - | 2,122 | ||||||||||||||||||||||||||||||
Trust pass-through securities - held at amortized cost | 126 | - | 139 | - | 139 | |||||||||||||||||||||||||||||||||||
Trust pass-through securities - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Trust pass-through securities - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Trust pass-through securities - held at amortized cost | 111 | - | 125 | - | 125 | |||||||||||||||||||||||||||||||||||
Borrowings – held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Borrowings – held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Borrowings – held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Borrowings – held at amortized cost | 9,661 | 1,735 | 2,662 | 5,773 | 10,171 | 2,356 | 879 | 1,580 | - | 2,459 | ||||||||||||||||||||||||||||||
Investment contracts - held at amortized cost | 21,573 | - | - | 20,861 | 20,861 | |||||||||||||||||||||||||||||||||||
2020 | Estimated fair value hierarchy | Total estimated | ||||||||||||||||||||||||||||||||||||||
Carrying amount December 31, 2020 | Level I | Level II | Level III | fair value December 31, 2020 | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans - held at amortized cost | 38,244 | - | 1 | 43,257 | 43,258 | |||||||||||||||||||||||||||||||||||
Private loans - held at amortized cost | 4,358 | - | 38 | 5,242 | 5,280 | |||||||||||||||||||||||||||||||||||
Other loans - held at amortized cost | 1,917 | 41 | 1,850 | 26 | 1,917 | |||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Subordinated borrowings - held at amortized cost | 2,085 | 1,517 | 834 | - | 2,351 | |||||||||||||||||||||||||||||||||||
Trust pass-through securities - held at amortized cost | 126 | - | 51 | 91 | 142 | |||||||||||||||||||||||||||||||||||
Borrowings – held at amortized cost | 8,524 | 1,766 | 2,083 | 5,315 | 9,165 | |||||||||||||||||||||||||||||||||||
Investment contracts - held at amortized cost | 20,889 | - | - | 20,382 | 20,382 | |||||||||||||||||||||||||||||||||||
Investment contracts - held at amortized cost | ||||||||||||||||||||||||||||||||||||||||
Investment contracts - held at amortized cost | 10,222 | - | - | 8,755 | 8,755 |
Carrying amount December 31, 2022 | Estimated fair value hierarchy | Total estimated fair value December 31, 2022 | ||||||||||||||||||
Level I | Level II | Level III | ||||||||||||||||||
Assets | ||||||||||||||||||||
Mortgage loans - held at amortized cost | 10,407 | - | 1 | 9,218 | 9,218 | |||||||||||||||
Other loans - held at amortized cost | 46 | 39 | 7 | - | 46 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Subordinated borrowings - held at amortized cost | 2,295 | 1,372 | 663 | - | 2,035 | |||||||||||||||
Trust pass-through securities - held at amortized cost | 118 | - | 133 | - | 133 | |||||||||||||||
Borrowings – held at amortized cost | 4,051 | 1,289 | 2,825 | - | 4,114 | |||||||||||||||
Investment contracts - held at amortized cost | 9,597 | - | - | 8,416 | 8,416 |
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Annual Report on Form 20-F 2023 | 301 |
![]() | About Aegon Governance and risk management Financial information | |||
![]() |
Notes to the consolidated financial statements Note 38 | ||||
![]() |
Annual Report on Form 20-F 2023 | 303 |
![]() | About Aegon Governance and risk management Financial information | |||
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Notes to the consolidated financial statements Note 38 | ||||
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2021 | 2020 | |||||||||||||||||||||||
Trading | Designated | Trading | Designated | |||||||||||||||||||||
Investments for general account | 41 | 8,440 | 114 | 9,943 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||
Investments for account of policyholders | - | 250,390 | - | 223,705 | ||||||||||||||||||||
Trading | Designated | Trading | Designated | |||||||||||||||||||||
Investments where Aegon bears the risk | ||||||||||||||||||||||||
Investments where Aegon bears the risk | 9,386 | 2,526 | 8,079 | 1,940 | ||||||||||||||||||||
Investments where the policyholder bears the risk | ||||||||||||||||||||||||
Investments where the policyholder bears the risk | - | 193,823 | - | 180,006 | ||||||||||||||||||||
Derivatives with positive values not designated as hedges | 8,390 | - | 13,364 | - | ||||||||||||||||||||
Derivatives with positive values not designated as hedges | 1,238 | - | 2,445 | |||||||||||||||||||||
Total financial assets at fair value through profit or loss | 8,431 | 258,830 | 13,479 | 233,647 | 10,625 | 196,349 | 10,524 | 181,946 | ||||||||||||||||
Investment contracts for account of policyholders | - | 71,242 | - | 59,625 | ||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | ||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | - | 65,044 | - | 55,631 | ||||||||||||||||||||
Derivatives with negative values not designated as hedges | 9,617 | - | 13,828 | - | ||||||||||||||||||||
Derivatives with negative values not designated as hedges | 1,466 | - | 3,958 | - | ||||||||||||||||||||
Total financial liabilities at fair value through profit or loss | 9,617 | 71,242 | 13,828 | 59,625 | 1,466 | 65,044 | 3,958 | 55,631 |
Annual Report on Form 20-F 2023 | 305 |
![]() | About Aegon Governance and risk management Financial information | |||
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2021 | 2020 1) | |||||||
Trading | Designated | Trading | Designated | |||||
Net gains and (losses) | (2,930) | 25,591 | 1,150 | 20,411 |
2023 | 2022 | |||||||
Trading | Designated | Trading | Designated | |||||
Net gains and (losses) | (1,244) | 21,207 | (4,431) | (35,205) |
2023 | 2022 | |||||||||||||||
2021 | 2020 | |||||||||||||||
Purchase | Sale | Purchase | Sale | Purchase | Sale | Purchase | Sale | |||||||||
Real estate | 129 | 6 | 180 | 14 | ||||||||||||
Real estate | - | 2 | - | 1 | ||||||||||||
Mortgage loans | ||||||||||||||||
Mortgage loans | 1,163 | 67 | 1,469 | 122 | 421 | - | 468 | - | ||||||||
Private loans | 311 | 0- | 172 | - | ||||||||||||
Private loans | 89 | - | 150 | - | ||||||||||||
Other | 1,358 | 0- | 1,310 | - | ||||||||||||
Other | 1,292 | - | 1,408 | - |
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< 1 year amounts | 1 < 2 years amounts | 2 < 3 years amounts | 3 < 4 years amounts | 4 < 5 years amounts | > 5 years amounts | |||||||
2021 | ||||||||||||
Operating lease rights | 8 | 8 | 6 | 5 | 5 | 21 | ||||||
2020 | ||||||||||||
Operating lease rights | 8 | 6 | 5 | 4 | 4 | 22 |
2021 | 2020 | |||||||
Guarantees | 506 | 364 | ||||||
Standby letters of credit | 12 | 11 | ||||||
Share of contingent liabilities incurred in relation to interests in joint ventures | 7 | 7 | ||||||
Other guarantees | 11 | 11 | ||||||
Other commitments and contingent liabilities | 0 | 7 |
2023 | 2022 | |||
Guarantees | 773 | 611 | ||
Other guarantees | 7 | 8 |
Notes to the consolidated financial statements Note 39 | ||||
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∎ | Due and punctual payment of payables under letter of credit agreements applied for by Aegon co-applicant with its captive insurance companies that are subsidiaries of Transamerica Corporation and Commonwealth General Corporation. |
∎ | Due and punctual payment of payables by the consolidated group companies Transamerica Corporation, Aegon Funding Company LLC and Commonwealth General Corporation with respect to fixed subordinated notes, bonds, capital trust pass-through securities and notes issued under commercial paper programs amounting to EUR |
∎ | Due and punctual payment of any amounts owed to third parties by the consolidated group company Aegon Derivatives N.V. in connection with derivative transactions. Aegon Derivatives N.V. enters into derivative transactions with counterparties with which ISDA master netting agreements, including collateral support annex agreements, have been agreed. Net (credit) exposure on derivative transactions with these counterparties was therefore limited |
Annual Report on Form 20-F 2023 | 307 |
![]() | About Aegon Governance and risk management Financial information | |||
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Notes to the consolidated financial statements Note 40 | ||||
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Transferred financial assets that are not derecognized in their entirety: |
Securities lending; whereby Aegon legally (but not economically) transfers assets and receives cash and non-cash collateral is not recognized in the statement of financial position; and |
Repurchase activities; whereby Aegon receives cash for the transferred assets. The financial assets are legally (but not economically) transferred but are not derecognized. The obligation to repay the cash received is recognized as a liability. |
Transferred financial assets that are derecognized in their entirety and Aegon does not have a continuing involvement (normal sale); |
Transferred financial assets that are derecognized in their entirety, but where Aegon has a continuing involvement; |
Collateral accepted in the case of securities lending, reverse repurchase agreement and derivative transactions; and |
Collateral pledged in the case of (contingent) liabilities, repurchase agreements, securities borrowing and derivative transactions. |
Annual Report on Form 20-F 2023 | 309 |
![]() | About Aegon Governance and risk management Financial information | |||
2023 | ||||||||||||||||||||||||||||||||||||||||
2021 | FVOCI financial assets | FVPL financial assets | ||||||||||||||||||||||||||||||||||||||
Available-for-sale financial assets | Financial assets at fair value through profit or loss | Shares | Debt securities | Money market and other short-term invest- ments | Other | Debt securi- ties | Invest- ments where the PH bears risk | Money market and other short-term invest- ments | Other | |||||||||||||||||||||||||||||||
Shares | Debt securities | Debt securities | Investments for account of policyholders | |||||||||||||||||||||||||||||||||||||
Carrying amount of transferred assets | 34 | 3,705 | 12 | 96 | ||||||||||||||||||||||||||||||||||||
Carrying amount of transferred assets | ||||||||||||||||||||||||||||||||||||||||
Carrying amount of transferred assets | ||||||||||||||||||||||||||||||||||||||||
Carrying amount of transferred assets | - | 2,068 | - | - | 5 | 15 | - | - | ||||||||||||||||||||||||||||||||
Carrying amount of associated liabilities | 37 | 3,941 | 18 | 0 | ||||||||||||||||||||||||||||||||||||
Carrying amount of associated liabilities | ||||||||||||||||||||||||||||||||||||||||
Carrying amount of associated liabilities | ||||||||||||||||||||||||||||||||||||||||
Carrying amount of associated liabilities | - | 2,382 | - | - | 9 | - | - | - |
2022 | ||||||||||||||||||||||||||||||||
FVOCI financial assets | FVPL financial assets | |||||||||||||||||||||||||||||||
Shares | Debt securities | Money market and other short-term invest- ments | Other | Debt securities | Invest- ments where the PH bears risk | Money market and other short-term invest- ments | Other | |||||||||||||||||||||||||
Carrying amount of transferred assets | - | 2,200 | - | - | 16 | 72 | - | - | ||||||||||||||||||||||||
Carrying amount of associated liabilities | - | 2,513 | - | - | 17 | - | - | - |
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2020 | ||||||||
Available-for-sale financial assets | Financial assets at fair value through profit or loss | |||||||
Shares | Debt securities | Debt securities | Investments for account of policyholders | |||||
Carrying amount of transferred assets | 64 | 3,068 | 11 | 153 | ||||
Carrying amount of associated liabilities | 71 | 3,166 | 14 | - |
Notes to the consolidated financial statements Note 40 | ||||
Securities lending | 2021 | 2020 | ||||||
Carrying amount of transferred financial assets | 3,083 | 2,320 | ||||||
Fair value of cash collateral received | 2,171 | 2,053 | ||||||
Fair value of non-cash collateral received | 1,102 | 393 | ||||||
Net exposure | (190 | ) | (126 | ) | ||||
Non-cash collateral that can be sold or repledged in the absence of default | 1,004 | 236 | ||||||
Non-cash collateral that has been sold or transferred | 0 | 0 |
Securities lending | 2023 | 2022 | ||||||
Carrying amount of transferred financial assets | 2,063 | 2,190 | ||||||
Fair value of cash collateral received | 2,357 | 2,417 | ||||||
Fair value of non-cash collateral received | 16 | 74 | ||||||
Net exposure | (309 | ) | (301 | ) |
Reverse repurchase agreements | 2021 | 2020 | ||||||
Cash paid for reverse repurchase agreements | 1,004 | 1,180 | ||||||
Fair value of non-cash collateral received | 1,025 | 1,199 | ||||||
Net exposure | (21 | ) | (19 | ) | ||||
Non-cash collateral that can be sold or repledged in the absence of default | 695 | 869 | ||||||
Non-cash collateral that has been sold or transferred | 0 | 0 |
Reverse repurchase agreements | 2023 | 2022 | ||||||
Cash paid for reverse repurchase agreements | 442 | 312 | ||||||
Fair value of non-cash collateral received | 467 | 335 | ||||||
Net exposure | (24 | ) | (23 | ) |
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2023 | 2022 | |||||||||||||||||||
Assets pledged for general account and contingent liabilities | 2021 | 2020 | Where Aegon bears the risk | Where the PH bears the risk | Where Aegon bears the risk | Where the PH bears the risk | ||||||||||||||
General account (contingent) liabilities | 3,410 | 2,832 | ||||||||||||||||||
Contingent liabilities | ||||||||||||||||||||
Contingent liabilities | ||||||||||||||||||||
Contingent liabilities | ||||||||||||||||||||
Contingent liabilities | 2,290 | - | 3,559 | - | ||||||||||||||||
Collateral pledged | 4,594 | 4,090 | ||||||||||||||||||
Collateral pledged | ||||||||||||||||||||
Collateral pledged | ||||||||||||||||||||
Collateral pledged | 4,171 | - | 5,745 | - | ||||||||||||||||
Net exposure | (1,183) | (1,258) | ||||||||||||||||||
Non-cash collateral that can be sold or repledged by the counterparty | 0 | 0 | ||||||||||||||||||
Net exposure | ||||||||||||||||||||
Net exposure | ||||||||||||||||||||
Net exposure | (1,881 | ) | - | (2,186 | ) | - |
Assets pledged for repurchase agreements | 2021 | 2020 | ||||
Cash received on repurchase agreements | 821 | 962 | ||||
Collateral pledged (transferred financial assets) | 764 | 975 | ||||
Net exposure | 57 | (13) |
Assets pledged for repurchase agreements | 2023 | 2022 | ||||||
Cash received on repurchase agreements | 29 | 107 | ||||||
Collateral pledged (transferred financial assets) | 25 | 99 | ||||||
Net exposure | 3 | 8 |
Annual Report on Form 20-F 2023 | 311 |
![]() | About Aegon Governance and risk management Financial information | |||
Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements | Gross amounts of recognized financial assets | Gross amounts of recognized financial liabilities set off in the statement of financial position | Net amounts of financial assets presented in the statement of financial position | Related amounts not set off in the statements of financial position | Net amount | |||||||||
Financial instruments | Cash collateral received (excluding surplus collateral) | |||||||||||||
2021 | ||||||||||||||
Derivatives | 8,811 | 0- | 8,811 | 6,045 | 2,519 | 247 | ||||||||
At December 31 | 8,811 | 0- | 8,811 | 6,045 | 2,519 | 247 | ||||||||
2020 | ||||||||||||||
Derivatives | 14,030 | 0- | 14,030 | 8,778 | 5,224 | 27 | ||||||||
At December 31 | 14,030 | 0- | 14,030 | 8,778 | 5,224 | 27 |
Financial assets subject to offsetting, enforceable master netting arrange- ments and similar agreements | Gross amounts of recognized financial assets | Gross amounts of recognized financial liabilities set off in the statement of financial position | Net amounts of financial assets presented in the statement of financial position | Related amounts not set off in the statements of financial position | ||||||||||||||||||||
Financial instruments | Cash collateral received (excluding surplus collateral) | Net amount | ||||||||||||||||||||||
2023 | ||||||||||||||||||||||||
Derivatives | 1,341 | - | 1,341 | 631 | 707 | 2 | ||||||||||||||||||
On December 31 | 1,341 | - | 1,341 | 631 | 707 | 2 | ||||||||||||||||||
2022 | ||||||||||||||||||||||||
Derivatives | 2,733 | - | 2,733 | 2,589 | 111 | 34 | ||||||||||||||||||
On December 31 | 2,733 | - | 2,733 | 2,589 | 111 | 34 |
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Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements | Gross amounts of recognized financial liabilities | Gross amounts of recognized financial assets set off in the statement of financial position | Net amounts of financial liabilities presented in the statement of financial position | Related amounts not set off in the statements of financial position | Net amount | |||||||||
Financial instruments | Cash collateral pledged (excluding surplus collateral) | |||||||||||||
2021 | ||||||||||||||
Derivatives | 7,043 | 0 | 7,043 | 6,768 | 224 | 52 | ||||||||
At December 31 | 7,043 | 0 | 7,043 | 6,768 | 224 | 52 | ||||||||
2020 | ||||||||||||||
Derivatives | 9,633 | 0 | 9,633 | 9,436 | 170 | 28 | ||||||||
At December 31 | 9,633 | 0 | 9,633 | 9,436 | 170 | 28 |
Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements | Gross amounts of recognized financial liabilities | Gross amounts of recognized financial assets set off in the statement of financial position | Net amounts of financial liabilities presented in the statement of financial position | Related amounts not set off in the statements of financial position | ||||||||||||||||||||
Financial instruments | Cash collateral pledged (excluding surplus collateral) | Net amount | ||||||||||||||||||||||
2023 | ||||||||||||||||||||||||
Derivatives | 2,361 | - | 2,361 | 1,245 | 1,026 | 90 | ||||||||||||||||||
On December 31 | 2,361 | - | 2,361 | 1,245 | 1,026 | 90 | ||||||||||||||||||
2022 | ||||||||||||||||||||||||
Derivatives | 5,115 | - | 5,115 | 3,359 | 1,668 | 89 | ||||||||||||||||||
On December 31 | 5,115 | - | 5,115 | 3,359 | 1,668 | 89 |
Notes to the consolidated financial statements Note 42 | ||||
Annual Report on Form 20-F 2023 | 313 |
![]() | About Aegon Governance and risk management Financial information | |||
∎ | Transamerica Casualty Insurance Company, Cedar Rapids, Iowa (United States) |
∎ | Transamerica Corporation, Wilmington, Delaware (United States) |
∎ | Transamerica Financial Life Insurance Company, Harrison, New York (United States) |
∎ | Transamerica Life Insurance Company, Cedar Rapids, Iowa (United States) |
∎ | World Financial Group Insurance Agency, LLC, Cedar Rapids, Iowa (United States) |
∎ | Aegon Investment Solutions Ltd., Edinburgh |
∎ | Aegon Investments Ltd., London |
∎ | Cofunds Limited, London |
∎ | Scottish Equitable plc, Edinburgh |
∎ | Aegon España S.A.U. de Seguros y Reaseguros, Madrid (Spain) |
∎ | Transamerica Life (Bermuda) Ltd., Hamilton (Bermuda) |
∎ | Aegon Asset Management Holding B.V., The Hague (The Netherlands) |
∎ | Aegon Asset Management UK plc, Edinburgh (United Kingdom) |
∎ | Aegon Investment Management B.V., The Hague (The Netherlands) |
∎ | Aegon USA Investment Management, LLC, Cedar Rapids (United States) |
∎ | Aegon USA Realty Advisors, LLC, Des Moines (United States) |
∎ | Santander Generales Seguros y Reaseguros, S.A., Madrid (Spain) (51%) |
∎ | Santander Vida Seguros y Reaseguros, S.A., Madrid (Spain) (51%) |
∎ | Aegon Santander Portugal Não Vida – Companhia de Seguros S.A., Lisbon (Portugal) (51%) |
∎ | Aegon Santander Portugal Vida – Companhia de Seguros de Vida S.A., Lisbon (Portugal) (51%) |
∎ | Aegon THTF Life Insurance Co., Ltd., Shanghai (China) (50%) |
∎ | Mongeral Aegon, Seguros e Previdencia S.A., Rio de Janeiro (Brazil) (59.2%, where Aegon has 50% voting rights) |
∎ | Sicoob Seguradode de Vida e Previdência S.A., Rio de Janeiro (Brazil) (29.6%) |
∎ | Aegon Industrial Fund Management Co., Ltd., Shanghai (China) (49%) |
Notes to the consolidated financial statements Note 44 | ||||
∎ | ASR Nederland N.V., Utrecht (29.98%) |
∎ | significant changes to dividend policy (as per current stated a.s.r. policies); |
∎ | certain dilutive transactions (issuance of equity or debt instruments); |
∎ | M&A transactions (acquisitions and divestments, joint ventures and long term co-operations) with a value exceeding EUR 500 million. |
∎ | material decisions on capital management, material reinsurance, and capital allocation / distribution, in each case to the extent this would result in a material change to the characteristics of the risk profile of (the enterprise of) a.s.r. and other than in the ordinary course of business. |
∎ | La Banque Postale Asset Management, Paris (France) (25%) |
Annual Report on Form 20-F 2023 | 315 |
![]() | About Aegon Governance and risk management Financial information | |||
Notes to the consolidated financial statements Note 45 | ||||
2023 | 2022 | 2021 | ||||
Non-Executive Directors1 ) | 1.3 | 1.3 | 0.9 | |||
Executive Director 2 ) | 0.9 | n.a. | n.a. | |||
Executive Board 3 ) | 4.3 | 5.2 | 4.9 | |||
Key Management 4 ) | 27.9 | 27.7 | 27.5 | |||
in fixed compensation | 13.8 | 16.0 | 16.8 | |||
in cash based variable compensation | 4.6 | 4.0 | 3.6 | |||
in share based variable compensation | 5.0 | 3.5 | 3.2 | |||
in pension contributions | 3.1 | 3.0 | 2.8 | |||
in other benefits | 1.3 | 1.2 | 1.1 |
1 | Previously reported as ‘Supervisory Board’. |
2 | Classification established September 30, 2023. In 2023, this represents Mr. Lard Friese from October 1, 2023. |
3 | Classification ended September 30, 2023. In 2023, this represents Mr. Lard Friese and Mr. Matt Rider through September 30, 2023. |
4 | Key Management is inclusive of Non-Executive Directors, Executive Directors, also reported separately above and Executive Committee Members. |
5 | n.a. in above table should be read as “not applicable”. |
Shares held in Aegon on December 31 | 2023 | 2022 | 2021 | |||
Ben J. Noteboom 1 ) | - | 23,500 | 23,500 | |||
Dona D. Young | 13,260 | 13,260 | 13,260 | |||
Total | 13,260 | 36,760 | 36,760 |
1 | Mr. Ben J. Noteboom stepped down in May 2023 |
Annual Report on Form 20-F 2023 | 317 |
![]() | About Aegon Governance and risk management Financial information | |||
EUR million | 2023 | 2022 | ||||||
Discontinued operations | ||||||||
Insurance revenue | 1,400 | 2,907 | ||||||
Insurance service expenses | (1,327 | ) | (2,703 | ) | ||||
Net expenses on reinsurance held | (20 | ) | (15 | ) | ||||
Insurance service result | 52 | 189 | ||||||
Interest revenue on financial instruments calculated using the effective interest method | 42 | 4 | ||||||
Interest revenue on financial instruments measured at FVPL | 582 | 1,281 | ||||||
Other investment income | 168 | 263 | ||||||
Results from financial transactions | 614 | (20,328 | ) | |||||
Impairment (losses) / reversals | - | 5 | ||||||
Insurance finance income / (expenses) | (1,110 | ) | 16,906 | |||||
Net reinsurance finance income / (expenses) on reinsurance held | (6 | ) | 125 | |||||
Insurance net investment result | 289 | (1,745 | ) | |||||
Interest revenue on financial instruments calculated using the effective interest method | 273 | 496 | ||||||
Interest revenue on financial instruments measured at FVPL | 137 | (340 | ) | |||||
Other investment income | 11 | 11 | ||||||
Results from financial transactions | (208 | ) | 1,638 | |||||
Impairment (losses) / reversals | 3 | - | ||||||
Investment contract income / (expenses) | (25 | ) | 136 | |||||
Interest expenses | (10 | ) | (2 | ) | ||||
Other net investment result | 180 | 1,939 | ||||||
Interest charges | (55 | ) | (49 | ) | ||||
Financing net investment result | (55 | ) | (49 | ) | ||||
Total net investment result | (414 | ) | 145 | |||||
Fees and commission income | 165 | 311 | ||||||
Other operating expenses | (288 | ) | (474 | ) | ||||
Other income / (charges) | 96 | 20 | ||||||
Other result | (28 | ) | (142 | ) | ||||
Result before share in profit / (loss) of joint ventures, associates and tax | 438 | 191 | ||||||
Share in profit / (loss) of joint ventures | 4 | 37 | ||||||
Share in profit / (loss) of associates | 15 | 15 | ||||||
Result before tax | 458 | 242 | ||||||
Income tax (expense) / benefi t | (62 | ) | (445 | ) | ||||
Net result from discontinued operations | 396 | (203 | ) | |||||
Impairment loss on remeasurement of the disposal group | (413 | ) | (1,094 | ) | ||||
Net result from discontinued operations after remeasurement | (17 | ) | (1,296 | ) |
Notes to the consolidated financial statements Note 45 | ||||
Amounts in EUR millions | 2023 | 2022 | ||||||
Net result from discontinued operations | (17 | ) | (1,296 | ) | ||||
Items that will not be reclassified to profit or loss: | ||||||||
Changes in revaluation reserve real estate held for own use | ||||||||
Remeasurements of defined benefit plans | 51 | 948 | ||||||
Income tax relating to items that will not be reclassified | (13 | ) | (245 | ) | ||||
Items that may be reclassified subsequently to profit or loss: | ||||||||
Gains / (losses) on financial assets measured at FVOCI | 16 | (461 | ) | |||||
(Gains) / losses transferred to income statement on disposal of financial assets measured at FVOCI | - | (5 | ) | |||||
Equity movements of associates | (2 | ) | 2 | |||||
Income tax relating to items that may be reclassified | (4 | ) | 120 | |||||
Other | ||||||||
Total other comprehensive income / (loss) from discontinued operations | 48 | 359 | ||||||
Total comprehensive income / (loss) from discontinued operations | 31 | (937 | ) |
2023 | 2022 | |||||||
(IFRS9/17) | (IFRS9/17) | |||||||
Net cash receivable after costs to sell | 2,184 | 2,175 | ||||||
Fair value of 29.99% share in a.s.r. | 2,588 | 2,700 | ||||||
Fair value less costs to sell | 4,772 | 4,875 | ||||||
Carrying amount of Aegon the Netherlands | 5,185 | 5,969 | ||||||
Fair value less costs to sell minus carrying amo u nt | (413 | ) | (1,094 | ) | ||||
Assets in scope for impairment | 1,775 | 1,775 | ||||||
Cumulative Impairment loss recognized | 1,507 | 1,094 |
Annual Report on Form 20-F 2023 | 319 |
![]() | About Aegon Governance and risk management Financial information | |||
Reconciliation of financial instruments, January 1, 2023 | IAS 39 category | IAS 39 amount | Reclassifi- cation | Remeasurement - ECL | Remeasurement - Other | IFRS 9 category 1) | IFRS 9 amount | |||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||
Shares | FVPL | 8,256 | 37 | - | - | FVPL (designated) | 8,293 | |||||||||||||||||||||
Shares | AFS | 21 | (21 | ) | - | - | FVOCI (designated) | - | ||||||||||||||||||||
Debt securities | AFS | 14,109 | (12,225 | ) | - | - | FVOCI | 1,884 | ||||||||||||||||||||
Debt securities | FVPL | 9,609 | 12,209 | - | - | FVPL (designated) | 21,819 | |||||||||||||||||||||
Loans | L&R | 35,916 | (20,004 | ) | (82 | ) | 58 | AC | 15,888 | |||||||||||||||||||
Loans | FVPL | - | 20,918 | - | (1,892 | ) | FVPL (designated) | 18,175 | ||||||||||||||||||||
Deposits with financial institutions | L&R | 1,527 | - | - | - | AC | 1,527 | |||||||||||||||||||||
Unconsolidated investment funds | FVPL | 631 | - | - | - | FVPL (designated) | 631 | |||||||||||||||||||||
Other investments | FVPL | 3,464 | (64 | ) | - | - | FVPL (designated) | 3,400 | ||||||||||||||||||||
Other investments | AFS | 13 | (13 | ) | - | - | FVOCI | - | ||||||||||||||||||||
Cash and cash equivalents | L&R | 3,557 | - | - | - | AC | 3,557 | |||||||||||||||||||||
Other financial assets and receivables | L&R | 1,520 | 114 | - | - | AC | 1,634 | |||||||||||||||||||||
Derivatives | FVPL | 8,395 | - | - | - | FVPL (mandatorily) | 8,395 | |||||||||||||||||||||
Total | 86,169 | 103 | (82 | ) | (1,853 | ) | 84,336 | |||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||
Investment contracts | AC | (12,179 | ) | - | - | - | AC | (12,179 | ) | |||||||||||||||||||
Investment contracts | FVPL | (1,396 | ) | - | - | - | FVPL (designated) | (1,396 | ) | |||||||||||||||||||
Long-term borrowings and group loans | AC | (5,227 | ) | - | - | - | AC | (5,227 | ) | |||||||||||||||||||
Derivatives | FVPL | (9,239 | ) | 753 | - | - | FVPL (mandatorily) | (8,486 | ) | |||||||||||||||||||
Other liabilities | AC | (1,663 | ) | 378 | - | - | AC | (1,285 | ) | |||||||||||||||||||
Total | (29,704 | ) | 1,131 | - | - | (28,573 | ) |
1 | m: mandatorily; d: designated |
Amounts in EUR millions | 2023 | 2022 | ||||||
Net cash inflow (outflow) from operating activities | (519 | ) | 4,646 | |||||
Net cash inflow (outflow) from investing activities | (11 | ) | (4 | ) | ||||
Net cash inflow (outflow) from financing activities | (95 | ) | (3,275 | ) | ||||
Net cash inflow (outflow) from discontinued operations | (625 | ) | 1,367 |
Notes to the consolidated financial statements Note 45 | ||||
Amounts in EUR millions | 2023 | 2022 | ||||||
Assets | ||||||||
Cash and cash equivalents | 4,460 | 5,085 | ||||||
Investments | 72,345 | 71,991 | ||||||
Derivatives | 8,107 | 8,395 | ||||||
Investments in joint ventures | 382 | 382 | ||||||
Investments in associates | 1,096 | 1,096 | ||||||
Reinsurance contract assets | 395 | 365 | ||||||
Deferred tax assets | 339 | - | ||||||
Other assets and receivables | 1,216 | 1,185 | ||||||
Intangible assets | 165 | 165 | ||||||
Total assets held for sale | 88,505 | 88,664 | ||||||
Liabilities | ||||||||
Insurance contract liabilities | 52,849 | 52,591 | ||||||
Investment contracts without discretionary participating features | 13,239 | 13,575 | ||||||
Derivatives | 7,700 | 8,486 | ||||||
Borrowings | 5,333 | 5,227 | ||||||
Provisions | 44 | 52 | ||||||
Defined benefit liabilities | 2,412 | 2,462 | ||||||
Deferred tax liabilities | 6 | 62 | ||||||
Other liabilities | 1,951 | 1,510 | ||||||
Accruals | 294 | 218 | ||||||
Total liabilities held for sale / disposal groups | 83,828 | 84,183 |
Insurance contracts | Contracts not measured under the PAA | Contracts measured under the PAA | Total | |||||||||
Portfolios in an asset position | - | - | - | |||||||||
Portfolios in a liability position | 52,215 | 633 | 52,849 | |||||||||
Net balance, on June 30, 2023 | 52,215 | 633 | 52,849 | |||||||||
Portfolios in an asset position | - | - | - | |||||||||
Portfolios in a liability position | 52,037 | 554 | 52,591 | |||||||||
Net balance, on December 31, 2022 | 52,037 | 554 | 52,591 |
Annual Report on Form 20-F 2023 | 321 |
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Remaining coverage | Asset for Incurred claims | |||||||||||||||||||
Insurance contracts PAA - by type | Excluding loss recovery component | Loss recovery component | Best estimate liability | Risk adjustment | Total | |||||||||||||||
Opening assets | - | - | - | - | - | |||||||||||||||
Opening liabilities | 15 | - | 532 | 7 | 554 | |||||||||||||||
Net balance, on January 1, 2023 | 15 | - | 532 | 7 | 554 | |||||||||||||||
Insurance revenue | (167 | ) | - | - | - | (167 | ) | |||||||||||||
Incurred claims and other insurance service expenses | - | - | 74 | 2 | 75 | |||||||||||||||
Amortization of insurance acquisition cash flows | 4 | - | - | - | 4 | |||||||||||||||
Adjustments to liabilities for incurred claims | - | - | 83 | - | 82 | |||||||||||||||
Insurance service expenses | 4 | - | 156 | 2 | 162 | |||||||||||||||
Investment components | - | - | - | - | - | |||||||||||||||
Insurance service result | (163 | ) | - | 156 | 2 | (6 | ) | |||||||||||||
Insurance finance (income) / expenses (P&L and OCI) | - | - | 7 | - | 7 | |||||||||||||||
Cash flows | 220 | - | (143 | ) | - | 77 | ||||||||||||||
Net balance, on June 30, 2023 | 71 | - | 553 | 9 | 633 | |||||||||||||||
Closing assets | - | - | - | - | - | |||||||||||||||
Closing liabilities | 71 | - | 553 | 9 | 633 |
Remaining coverage | Asset for Incurred claims | |||||||||||||||||||
Insurance contracts PAA - by type | Excluding loss recovery component | Loss recovery component | Best estimate liability | Risk adjustment | Total | |||||||||||||||
Opening assets | - | - | - | - | - | |||||||||||||||
Opening liabilities | 16 | - | 601 | 10 | 627 | |||||||||||||||
Net balance, on January 1, 2022 | 16 | - | 601 | 10 | 627 | |||||||||||||||
Insurance revenue | (330 | ) | - | - | - | (330 | ) | |||||||||||||
Incurred claims and other insurance service expenses | - | - | 74 | - | 74 | |||||||||||||||
Adjustments to liabilities for incurred claims | - | - | 235 | (3 | ) | 233 | ||||||||||||||
Insurance service expenses | - | - | 309 | (3 | ) | 306 | ||||||||||||||
Investment components | - | - | - | - | - | |||||||||||||||
Insurance service result | (330 | ) | - | 309 | (3 | ) | (24 | ) | ||||||||||||
Insurance finance (income) / expenses (P&L and OCI) | - | - | (110 | ) | - | (110 | ) | |||||||||||||
Cash flows | 329 | - | (268 | ) | - | 61 | ||||||||||||||
Net balance, on December 31, 2022 | 15 | - | 532 | 7 | 554 | |||||||||||||||
Closing assets | - | - | - | - | - | |||||||||||||||
Closing liabilities | 15 | - | 532 | 7 | 554 |
Notes to the consolidated financial statements Note 45 | ||||
Remaining coverage | ||||||||||||||||
Insurance contracts - by type | Excluding loss component | Loss component | Incurred claims | Total | ||||||||||||
Opening assets | - | - | - | - | ||||||||||||
Opening liabilities | 51,983 | 54 | - | 52,037 | ||||||||||||
Net balance, on January 1, 2023 | 51,983 | 54 | - | 52,037 | ||||||||||||
Insurance revenue | (1,232 | ) | - | - | (1,232 | ) | ||||||||||
Incurred claims and other insurance service expenses | - | (2 | ) | 1,159 | 1,156 | |||||||||||
Amortization of insurance acquisition cash flows | 2 | - | - | 2 | ||||||||||||
Losses (and reversal of losses) on onerous contracts | - | 7 | - | 7 | ||||||||||||
Insurance service expenses | 2 | 5 | 1,159 | 1,166 | ||||||||||||
Investment components | (313 | ) | - | 313 | - | |||||||||||
Insurance service result | (1,543 | ) | 5 | 1,471 | (67 | ) | ||||||||||
Insurance finance (income) / expenses (P&L and OCI) | 1,104 | (1 | ) | - | 1,103 | |||||||||||
Cash flows | 614 | - | (1,471 | ) | (858 | ) | ||||||||||
Net balance, on June 30, 2023 | 52,158 | 58 | - | 52,215 | ||||||||||||
Closing assets | - | - | - | - | ||||||||||||
Closing liabilities | 52,158 | 58 | - | 52,215 |
Remaining coverage | ||||||||||||||||
Insurance contracts - by type | Excluding loss component | Loss component | Incurred claims | Total | ||||||||||||
Opening assets | - | - | - | - | ||||||||||||
Opening liabilities | 71,041 | - | - | 71,041 | ||||||||||||
Net balance, on January 1, 2022 | 71,041 | - | - | 71,041 | ||||||||||||
Insurance revenue | (2,577 | ) | - | - | (2,577 | ) | ||||||||||
Incurred claims and other insurance service expenses | - | (4 | ) | 2,316 | 2,311 | |||||||||||
Amortization of insurance acquisition cash flows | 2 | - | - | 2 | ||||||||||||
Losses (and reversal of losses) on onerous contracts | - | 84 | - | 84 | ||||||||||||
Insurance service expenses | 2 | 79 | 2,316 | 2,397 | ||||||||||||
Investment components | (736 | ) | - | 736 | - | |||||||||||
Insurance service result | (3,312 | ) | 79 | 3,052 | (180 | ) | ||||||||||
Insurance finance (income) / expenses (P&L and OCI) | (16,770 | ) | (26 | ) | - | (16,796 | ) | |||||||||
Cash flows | 1,051 | - | (3,052 | ) | (2,001 | ) | ||||||||||
Contracts disposed during the period | (27 | ) | - | - | (27 | ) | ||||||||||
- | - | - | - | |||||||||||||
Net balance, on December 31, 2022 | 51,983 | 54 | - | 52,037 | ||||||||||||
Closing assets | - | - | - | - | ||||||||||||
Closing liabilities | 51,983 | 54 | - | 52,037 |
Annual Report on Form 20-F 2023 | 323 |
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Carrying amount June 30, 2023 | Total estimated fair value June 30, 2023 | |||||||
Assets | ||||||||
Mortgage loans - held at amortized cost | 15,849 | 13,544 | ||||||
Private loans - held at amortized cost | 389 | 393 | ||||||
Other loans - held at amortized cost | 12 | 12 | ||||||
Liabilities | ||||||||
Borrowings – held at amortized cost | 5,333 | 5,059 | ||||||
Investment contracts - held at amortized cost | 11,736 | 11,448 |
Carrying amount December 31, 2022 | Total estimated fair value December 31, 2022 | |||||||
Assets | ||||||||
Mortgage loans - held at amortized cost | 15,385 | 13,000 | ||||||
Private loans - held at amortized cost | 500 | 446 | ||||||
Other loans - held at amortized cost | 3 | 3 | ||||||
Liabilities | ||||||||
Borrowings – held at amortized cost | 5,227 | 4,920 | ||||||
Investment contracts - held at amortized cost | 12,179 | 11,826 |
Financial assets carried at fair value | On January 1, 2023 | Total gains / losses in income statement | Purchases | Sales | On June 30, 2023 | Total unrealized gains and losses for the period recorded in the P&L for instru- ments held on June 30, 2023 | ||||||||||||||||||
FVPL | ||||||||||||||||||||||||
Shares | 1,378 | (17 | ) | 190 | (120 | ) | 1,431 | (17 | ) | |||||||||||||||
Debt securities | 98 | 1 | - | (45 | ) | 53 | 1 | |||||||||||||||||
Loans | 18,175 | 26 | 965 | (617 | ) | 18,549 | 26 | |||||||||||||||||
Investments where the policyholder bears the risk | 932 | 2 | 157 | (451 | ) | 639 | 2 | |||||||||||||||||
20,583 | 11 | 1,312 | (1,234 | ) | 20,672 | 11 | ||||||||||||||||||
Total financial assets measured at fair value | 20,583 | 11 | 1,312 | (1,234 | ) | 20,672 | 11 | |||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | 105 | - | 3 | (19 | ) | 90 | - | |||||||||||||||||
Derivatives | 1 | (1 | ) | - | - | - | (1 | ) | ||||||||||||||||
106 | - | 3 | (19 | ) | 90 | - |
Notes to the consolidated financial statements Note 45 | ||||
Financial assets carried at fair value | On January 1, 2022 | Total gains / losses in income statement | Purchases | Sales | Transfers from levels I and II | Transfers to levels I and II | On December 31, 2022 | Total unrealized gains and losses for the period recorded in the P&L for instruments held on December 31, 2022 | ||||||||||||||||||||||||
FVPL | ||||||||||||||||||||||||||||||||
Shares | 1,364 | 175 | 190 | (350 | ) | - | - | 1,378 | 123 | |||||||||||||||||||||||
Debt securities | 196 | - | 44 | (3 | ) | - | (140 | ) | 98 | (7 | ) | |||||||||||||||||||||
Loans | 22,727 | (4,529 | ) | 1,802 | (1,825 | ) | - | - | 18,175 | (4,529 | ) | |||||||||||||||||||||
Investments where the policyholder bears the risk | 572 | (62 | ) | (562 | ) | 982 | 2 | - | 932 | (53 | ) | |||||||||||||||||||||
24,859 | (4,415 | ) | 1,473 | (1,196 | ) | 2 | (140 | ) | 20,583 | (4,466 | ) | |||||||||||||||||||||
Total financial assets measured at fair value | 24,859 | (4,415 | ) | 1,473 | (1,196 | ) | 2 | (140 | ) | 20,583 | (4,466 | ) | ||||||||||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||||||||||
Investment contracts without DPF where the policyholder bears the risk | (33 | ) | (23 | ) | (559 | ) | 721 | 1 | - | 105 | (18 | ) | ||||||||||||||||||||
Derivatives | 3 | (2 | ) | - | - | - | - | 1 | (2 | ) | ||||||||||||||||||||||
Total financial liabilities measured at fair value | (31 | ) | (25 | ) | (559 | ) | 721 | 1 | - | 106 | (19 | ) |
Annual Report on For m 20-F 2023 | 325 |
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Shareholders’ equity | Net result | |||||||
2021 | 2021 | |||||||
In accordance with IFRS | 23,813 | 2,029 | ||||||
Adjustment of EU ‘IAS 39’ carve-out | 632 | (422 | ) | |||||
Tax effect of the adjustment | (163 | ) | 93 | |||||
Effect of the adjustment after tax | 469 | (328 | ) | |||||
In accordance with EU-IFRS | 24,282 | 1,701 |
Notes to the consolidated financial statements Note 46 | ||||
∎ | Control structure of the asset manager (i.e. whether an Aegon subsidiary); |
∎ | The investment constraints posed by investment mandate; |
∎ | Legal rights held by the policyholder to the separate assets in the investment vehicle (e.g. policyholders could have the voting rights related to these investments); |
∎ | The governance structure, such as an independent Board of Directors, representing the policyholders, which has substantive rights (e.g. to elect or remove the asset manager); and |
∎ | Rights held by other parties (e.g. voting rights of policyholders that are substantive or not). |
∎ | General account investment of Aegon; |
∎ | Aegon’s investments held for policyholder; |
∎ | Guarantees provided by Aegon on return of policyholders in specific investment vehicles; |
∎ | Fees dependent on fund value (including, but not limited to, asset management fees); and |
∎ | Fees dependent on performance of the fund (including, but not limited to, performance fees). |
Annual Report on Form 20-F 2023 | 327 |
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Notes to the consolidated financial statements Note 46 | ||||
Annual Report on Form 20-F 2023 | 329 |
![]() | About Aegon Governance and risk management Financial information | |||
Notes to the consolidated financial statements Note 46 | ||||
Annual Report on Form 20-F 2023 | 331 |
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∎ | When considering the ‘highly probable’ requirement, it is assumed that the current benchmark interest rate on which the hedged positions is based will not change as a result of IBOR reform. |
∎ | In assessing whether the hedge is expected to be ‘highly effective’ on a forward-looking basis, it is assumed that the current benchmark interest rate on which the cash flows of the hedged item and the derivative that hedges it are based is not altered as a result of the IBOR reform. |
∎ | Hedge accounting is not discontinued during the period of IBOR-related uncertainty solely because the retrospective effectiveness falls outside the required 80-125% range. |
∎ | The cash flows hedge reserve relating to the period after the IBOR reform is expected to take effect, is not recycled solely because cash flows are expected to change. |
Notes to the consolidated financial statements Note 46 | ||||
∎ | designating an alternative benchmark rate as the hedged risk; |
∎ | amending the description of the hedged item, including the description of the designated portion of the cash flows or fair value being hedged; |
∎ | amending the description of the hedging instrument; or |
∎ | amending the description of the method for assessing hedge effectiveness. |
Annual Report on Form 20-F 2023 | 333 |
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Notes to the consolidated financial statements Note 46 | ||||
Annual Report on Form 20-F 2023 | 335 |
![]() | About Aegon Governance and risk management Financial information | |||
Notes to the consolidated financial statements Note 46 | ||||
Annual Report on Form 20-F 2023 | 337 |
![]() | About Aegon Governance and risk management Financial information | |||
Notes to the consolidated financial statements Note 46 | ||||
Annual Report on Form 20-F 2023 | 339 |
![]() | About Aegon Governance and risk management Financial information | |||
Notes to the consolidated financial statements Note 46 | ||||
Annual Report on Form 20-F 2023 | 341 |
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Notes to the consolidated financial statements Note 46 | ||||
∎ | Current year service cost which is recognized in profit or loss; and |
∎ | Net interest on the net defined benefit liability (asset) which is recognized in profit or loss. |
∎ | Actuarial gains and losses; |
∎ | The return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and |
∎ | Any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). |
∎ | The present value of the defined benefit obligation being settled, as determined on the date of settlement; and |
∎ | The settlement price, including any plan assets transferred and any payments made directly by Aegon in connection with the settlement. |
Annual Report on Form 20-F 2023 | 343 |
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Notes to the consolidated financial statements Note 46 | ||||
Annual Report on Form 20-F 2023 | 345 |
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Notes to the consolidated financial statements Note 46 | ||||
2021 | ||||
Net result | ||||
Americas (in USD) | 1,195 | |||
United Kingdom (in GBP) | 104 | |||
Equity in functional currency | ||||
Americas (in USD) | 18,324 | |||
United Kingdom (in GBP) | 1,260 |
Annual Report on Form 20-F 2023 | 347 |
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∎ | Items which cannot be directly allocated to a specific line of business; |
∎ | The impact of actuarial and economic assumption and model updates used to support calculations of our liabilities for insurance and investment contracts sold to policyholders and related assets; and |
∎ | Items that are outside the normal course of business, including restructuring charges |
Notes to the consolidated financial statements Note 46 | ||||
Income statement - Operating result | Americas | The Nether- lands | United Kingdom | International | Asset Manage- ment | Holding and other activities | Eliminations | Segment total | Joint ventures and associates eliminations | Consoli- dated | ||||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||||||
Operating result | 790 | 755 | 184 | 143 | 253 | (218 | ) | (1 | ) | 1,906 | 42 | 1,948 | ||||||||||||||||||||||||||||
Fair value items | 698 | 221 | (62 | ) | (18 | ) | (1 | ) | 12 | 3 | 854 | (123 | ) | 730 | ||||||||||||||||||||||||||
Realized gains / (losses) on investments | 313 | 118 | 10 | 2 | 2 | 1 | - | 446 | (9 | ) | 437 | |||||||||||||||||||||||||||||
Impairment charges | (19 | ) | (19 | ) | - | - | (1 | ) | (11 | ) | - | (49 | ) | (0 | ) | (49 | ) | |||||||||||||||||||||||
Impairment reversals | 33 | 59 | - | 1 | - | 8 | - | 101 | - | 101 | ||||||||||||||||||||||||||||||
Non-operating items | 1,025 | 378 | (51 | ) | (15 | ) | - | 11 | 3 | 1,352 | (132 | ) | 1,220 | |||||||||||||||||||||||||||
Other income / (charges) | (667 | ) | (23 | ) | 1 | 65 | (18 | ) | (138 | ) | - | (780 | ) | 12 | (768 | ) | ||||||||||||||||||||||||
Result before tax | 1,149 | 1,110 | 134 | 193 | 235 | (344 | ) | 2 | 2,478 | (78 | ) | 2,400 | ||||||||||||||||||||||||||||
Income tax (expense) / benefit | (137 | ) | (276 | ) | (12 | ) | (36 | ) | (65 | ) | 77 | - | (449 | ) | 78 | (371 | ) | |||||||||||||||||||||||
Net result | 1,012 | 833 | 122 | 157 | 170 | (267 | ) | 2 | 2,029 | - | 2,029 | |||||||||||||||||||||||||||||
Inter-segment operating result | (20 | ) | (95 | ) | (96 | ) | (31 | ) | 191 | 51 | ||||||||||||||||||||||||||||||
Revenues 2021 | ||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums | 6,917 | 1,323 | 4,613 | 1,372 | - | - | - | 14,225 | (825 | ) | 13,400 | |||||||||||||||||||||||||||||
Accident and health insurance | 1,273 | 254 | 3 | 179 | - | - | - | 1,709 | (67 | ) | 1,643 | |||||||||||||||||||||||||||||
General insurance | - | 136 | - | 432 | - | - | - | 569 | (168 | ) | 401 | |||||||||||||||||||||||||||||
Total gross premiums | 8,190 | 1,713 | 4,616 | 1,984 | - | - | - | 16,504 | (1,060 | ) | 15,444 | |||||||||||||||||||||||||||||
Investment income | 2,909 | 2,088 | 1,691 | 361 | 12 | 242 | (261 | ) | 7,042 | (75 | ) | 6,967 | ||||||||||||||||||||||||||||
Fee and commission income | 1,920 | 300 | 223 | 59 | 800 | - | (183 | ) | 3,120 | (335 | ) | 2,785 | ||||||||||||||||||||||||||||
Other revenues | - | - | - | 14 | 2 | 12 | - | 27 | (15 | ) | 13 | |||||||||||||||||||||||||||||
Total revenues | 13,019 | 4,101 | 6,531 | 2,418 | 814 | 254 | (444 | ) | 26,693 | (1,484 | ) | 25,209 | ||||||||||||||||||||||||||||
Inter-segment revenues | 1 | 14 | - | - | 182 | 247 |
Annual Report on Form 20-F 2023 | 349 |
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Presentation Non-Operating result | Note | 2021 | ||||||
Result before tax from continuing operations | 1,164 | |||||||
Result before tax from discontinued operations | 46.22 | 1,237 | ||||||
Impairment loss on remeasurement of disposal group | 46.22 | - | ||||||
Result before tax from continuing operations and discontinued operations | 2,400 | |||||||
Elimination of share in earnings of joint ventures and associates | (42 | ) | ||||||
Premium income | 46.4 | 5 | ||||||
Rental income | 46.5 | 71 | ||||||
Dividend income | 46.5 | (76 | ) | |||||
Fee and commission income | 46.6 | (30 | ) | |||||
Recovered claims and benefits | 46.7 | 31 | ||||||
Change in valuation of reinsurance ceded | 46.7 | 43 | ||||||
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives | 46.8 | 4 | ||||||
Net fair value change on borrowings and other financial liabilities | 46.8 | 13 | ||||||
Realized gains and losses on financial investments | 46.8 | (463 | ) | |||||
Gains and (losses) on investments in real estate | 46.8 | (253 | ) | |||||
Net fair value change of derivatives | 46.8 | 471 | ||||||
Other income | 46.9 | (77 | ) | |||||
Benefits and claims paid life | 46.10 | 217 | ||||||
Change in valuation of liabilities for insurance contracts | 46.10 | (994 | ) | |||||
Change in valuation of liabilities for investment contracts | 46.10 | 8 | ||||||
Policyholder claims and benefits - Other | 46.10 | (38 | ) | |||||
Commissions and expenses | 46.12 | 715 | ||||||
Impairment (charges) reversals | 46.13 | (53 | ) | |||||
Interest charges and related fees | 46.14 | - | ||||||
Other charges | 46.15 | 37 | ||||||
Results of CEE businesses which were previously reported in operating results | (85 | ) | ||||||
Operating result | 1,906 |
∎ | Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives is reported as part of the respective line in note 46.8 and reflects the over- or underperformance of investments and guarantees held at fair value for which the expected long-term return is included in operating result. |
∎ | Net fair value change of derivatives is reported as part of the respective line in note 46.8 and includes: 1) the over- or underperformance of derivatives of EUR 8 million loss for which the expected long-term return is included in operating result; 2) Net fair value change on economic hedges where no hedge accounting is applied of EUR 466 million loss; 3) Ineffective portion of hedge transactions to which hedge accounting is applied of EUR 2 million gain. |
∎ | Net foreign currency gains and (losses) are reported as part of the respective line in note 46.8. |
∎ | Benefits and claims paid life relate to the lump-sum buy-out program for certain variable annuities in the Americas and is reported as part of the respective line in note 46.10. |
∎ | Change in valuation of liabilities for insurance contracts is reported as part of the respective line in note 46.10. |
∎ | Change in valuation of liabilities for investment contracts is reported as part of the respective line in note 46.10. |
∎ | Policyholder claims and benefits - Other are reported as part of the ‘Other’ line in note 46.10 and is related to policyholder tax. |
∎ | Commissions and expenses include: 1) Restructuring charges of EUR 240 million charge which are reported as part of Employee and Administration expenses lines in note 46.12; 2) Amortization of deferred expenses of EUR 260 million income which is reported as part of the respective line in note 46.12. This is offset against realized gains and losses and impairments on financial investments; 3) Amortization of VOBA and future servicing rights of EUR 87 million charge which is reported as part of the respective line in note 46.12. Commissions and expenses include a DPAC/VOBA fair value adjustment of EUR 51 million). |
∎ | Impairment (charges) reversals include: 1) Impairment charges and reversals on financial assets, excluding receivables of EUR 45 million reversal, as shown in note 46.13; 2) Impairment charges and reversals on non-financial assets and receivables of EUR 60 million charge reported as part of the respective line in note 46.13. |
∎ | There are no interest charges and related fees that are classified for segment reporting purposes as non-operating result. |
Notes to the consolidated financial statements Note 46 | ||||
Other selected income statement items | Americas | The Netherlands | United Kingdom | International | Asset Management | Holding and other activities | Total | |||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||
Amortization of deferred expenses, VOBA and future servicing rights | 929 | - | 113 | 61 | - | - | 1,103 | |||||||||||||||||||||
Depreciation | 56 | 20 | 6 | 15 | 2 | 1 | 99 | |||||||||||||||||||||
Impairment charges / (reversals) on financial assets, excluding receivables | (23 | ) | (14 | ) | - | - | - | (8 | ) | (45 | ) | |||||||||||||||||
Impairment charges / (reversals) on non-financial assets and receivables | 37 | 12 | - | - | 1 | 11 | 60 |
2021 | ||||
Life insurance | 12,077 | |||
Non-life insurance | 1,654 | |||
Total premium income | 13,731 | |||
Accident and health insurance | 1,389 | |||
General insurance | 265 | |||
Non-life insurance premium income | 1,654 |
2021 | ||||
Life insurance | 3,292 | |||
Non-life insurance | 126 | |||
Total premiums paid to reinsurers | 3,418 | |||
Accident and health insurance | 118 | |||
General insurance | 8 | |||
Non-life insurance premiums paid to reinsurers | 126 |
2021 | ||||
Interest income | 3,536 | |||
Dividend income | 1,327 | |||
Rental income | 29 | |||
Total investment income | 4,893 | |||
Interest income accrued on impaired financial assets | 53 | |||
Interest income on financial assets that are not carried at Fair value through profit or loss | 3,047 |
Annual Report on Form 20-F 2023 | 351 |
![]() | About Aegon Governance and risk management Financial information | |||
Total investment income from: | 2021 | |||
Shares | 1,327 | |||
Debt securities and money market instruments | 2,970 | |||
Loans | 499 | |||
Real estate | 29 | |||
Other | 68 | |||
Total | 4,893 |
Investment income is split into: | 2021 | |||
Investment income related to general account | 3,249 | |||
Investment income for account of policyholders | 1,644 | |||
Total | 4,893 | |||
Investment income from financial assets held for general account: | ||||
Available-for-sale | 2,674 | |||
Loans | 499 | |||
Financial assets designated at fair value through profit or loss | 97 | |||
Real estate | (1 | ) | ||
Derivatives | (4 | ) | ||
Other | (15 | ) | ||
Total | 3,249 |
2021 | ||||
Fee income from asset management | 1,647 | |||
Commission income | 640 | |||
Other | 168 | |||
Total fee and commission income | 2,454 | |||
Included in fee and commission income: | ||||
Fees on trust and fiduciary activities | 259 |
2021 | ||||
Recovered claims and benefits | 3,377 | |||
Change in technical provisions | 738 | |||
Commissions | 147 | |||
Amortization charges | 2 | |||
Total | 4,263 |
Results from financial transactions comprise: | 2021 | |||
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives | 807 | |||
Realized gains and (losses) on financial investments | 392 | |||
Gains and (losses) on investments in real estate | - | |||
Net fair value change of derivatives | 761 | |||
Net fair value change on account of policyholder financial assets at fair value through profit or loss | 22,539 | |||
Net fair value change on investments in real estate for account of policyholders | 46 | |||
Net foreign currency gains and (losses) | 182 | |||
Net fair value change on borrowings and other financial liabilities | (13 | ) | ||
Total | 24,715 |
Notes to the consolidated financial statements Note 46 | ||||
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives comprise: | 2021 | |||
Shares | 27 | |||
Debt securities and money market investments | (26 | ) | ||
Other | 807 | |||
Total | 807 |
Realized gains and losses on financial investments comprise: | 2021 | |||
Shares | 16 | |||
Debt securities and money market investments | 281 | |||
Loans | 125 | |||
Other | (30 | ) | ||
Total | 392 |
Realized gains and losses on financial investments comprise: | 2021 | |||
Available-for-sale | 268 | |||
Loans | 125 | |||
Total | 392 |
Net fair value change of derivatives comprise: | 2021 | |||
Net fair value change on economic hedges where no hedge accounting is applied | (265 | ) | ||
Net fair value change on bifurcated embedded derivatives | 1,023 | |||
Ineffective portion of hedge transactions to which hedge accounting is applied | 4 | |||
Total | 761 |
The ineffective portion of hedge transactions to which hedge accounting is applied comprises: | 2021 | |||
Fair value change on hedging instruments in a fair value hedge | (3 | ) | ||
Fair value change on hedged items in a fair value hedge | 6 | |||
Ineffectiveness fair value hedge | 3 | |||
Ineffectiveness cash flow hedges | 1 | |||
Total | 4 |
Net fair value change on for account of policyholder financial assets at fair value through profit or loss comprise: | 2021 | |||
Shares | 2,661 | |||
Debt securities and money market investments | (557 | ) | ||
Unconsolidated investment funds | 20,833 | |||
Derivatives | (398 | ) | ||
Total | 22,539 |
Net fair value change on borrowings and other financial liabilities | 2021 | |||
Borrowings | - | |||
Other financial liabilities | (13 | ) | ||
Total | (13 | ) |
Annual Report on Form 20-F 2023 | 353 |
![]() | About Aegon Governance and risk management Financial information | |||
2021 | ||||
Other income | 49 |
2021 | ||||
Benefits and claims paid life | 16,971 | |||
Benefits and claims paid non-life | 1,240 | |||
Change in valuation of liabilities for insurance contracts | 19,504 | |||
Change in valuation of liabilities for investment contracts | 2,420 | |||
Other | (38 | ) | ||
Total | 40,097 |
2021 | ||||
Surplus interest bonuses | 1 | |||
Profit appropriated to policyholders | 7 | |||
Total | 8 |
2021 | ||||
Commissions | 2,539 | |||
Employee expenses | 1,511 | |||
Administration expenses | 1,294 | |||
Deferred expenses | (1,160 | ) | ||
Amortization of deferred expenses | 933 | |||
Amortization of VOBA and future servicing rights | 171 | |||
Total | 5,286 | |||
Included in administration expenses: | ||||
Depreciation of equipment, software and real estate held for own use | 80 |
![]() | Notes to the consolidated financial statements Note 46 | |||
Employee expenses | 2021 | |||
Salaries | 1,092 | |||
Post-employment benefit costs | 126 | |||
Social security charges | 100 | |||
Other personnel costs | 150 | |||
Shares | 43 | |||
Total | 1,511 | |||
Included in employee expenses: | ||||
Defined contribution expenses | 35 |
Impairment charges / (reversals) comprise: | 2021 | |||
Impairment charges on financial assets, excluding receivables | 11 | |||
Impairment reversals on financial assets, excluding receivables | (42 | ) | ||
Impairment charges and reversals on non-financial assets and receivables | 48 | |||
Total | 16 |
Impairment charges on financial assets, excluding receivables, from: | 2021 | |||
Shares | 1 | |||
Debt securities and money market instruments | 9 | |||
Loans | - | |||
Total | 11 |
Impairment reversals on financial assets, excluding receivables, from: | 2021 | |||
Shares | (8 | ) | ||
Debt securities and money market instruments | (30 | ) | ||
Loans | (0 | ) | ||
Other | (4 | ) | ||
Total | (42 | ) |
2021 | ||||
Subordinated loans | 110 | |||
Trust pass-through securities | 8 | |||
Borrowings | 65 | |||
Other | 64 | |||
Total | 246 | |||
Included in interest charges and related fees: | ||||
Interest charges accrued on financial liabilities not carried at fair value through profit or loss | 121 |
Annual Report on Form 20-F 2023 | 355 |
![]() | About Aegon Governance and risk management Financial information | |||
2021 | ||||
Other charges | 101 |
2021 | ||||
Current tax | ||||
Current year | (18 | ) | ||
Adjustments to prior years | (6 | ) | ||
(24 | ) | |||
Deferred tax | ||||
Origination / (reversal) of temporary differences | 163 | |||
Changes in tax rates / bases | (39 | ) | ||
Changes in deferred tax assets as a result of recognition / write off of previously not recognized / recognized tax losses, tax credits and deductible temporary differences | (5 | ) | ||
Non-recognition of deferred tax assets | 9 | |||
Adjustments to prior years | (9 | ) | ||
119 | ||||
Income tax for the period (income) / charge | 95 |
Reconciliation between standard and effective income tax: | 2021 | |||
Result before tax from continuing operations | 1,164 | |||
Income tax calculated using weighted average applicable statutory tax rates | 231 | |||
Difference due to the effects of: | ||||
Non-taxable income | (57 | ) | ||
Non-tax deductible expenses | 21 | |||
Changes in tax rate/base | (39 | ) | ||
Different tax rates on overseas earnings | - | |||
Tax credits | (48 | ) | ||
Other taxes | 38 | |||
Adjustments to prior years | (15 | ) | ||
Change in uncertain tax positions | (16 | ) | ||
Changes in deferred tax assets as a result of recognition / write off of previously not recognized / recognized tax losses, tax credits and deductible temporary differences | (5 | ) | ||
Non-recognition of deferred tax assets | 9 | |||
Tax effect of (profit) / losses from joint ventures and associates | (18 | ) | ||
Other | (5 | ) | ||
(136 | ) | |||
Income tax for the period (result) / charge | 95 |
Notes to the consolidated financial statements Note 46 | ||||
2021 | ||||
Items that will not be reclassified to profit and loss: | ||||
Changes in revaluation reserve real estate held for own use | 1 | |||
Remeasurements of defined benefit plans | (78 | ) | ||
(77 | ) | |||
Items that may be reclassified subsequently to profit and loss: | ||||
(Gains) / losses on revaluation of available-for-sale | 269 | |||
(Gains) / losses transferred to the income statement on disposal and impairment of available-for-sale | 71 | |||
Changes in cash flow hedging reserve | 47 | |||
Movement in foreign currency translation and net foreign investment hedging reserve | 3 | |||
390 | ||||
Total income tax related to components of other comprehensive income | 313 |
2021 | ||||
Income tax related to equity instruments and other | ||||
Income tax related to equity instruments | 13 | |||
Other | 3 | |||
Total income tax recognized directly in retained earnings | 16 |
Annual Report on Form 20-F 2023 | 357 |
![]() | About Aegon Governance and risk management Financial information | |||
2021 | ||||
Continuing and discontinued operations | ||||
Net result attributable to owners of Aegon Ltd from continuing and discontinued operations | 1,980 | |||
Coupons on perpetual securities | (39 | ) | ||
Net result attributable to owners for basic earnings per share calculation from continuing and discontinued operations | 1,941 | |||
Net result attributable to common shareholders from continuing and discontinued operations | 1,928 | |||
Net result attributable to common shareholders B from continuing and discontinued operations | 13 | |||
Weighted average number of common shares outstanding (in million) | 2,043 | |||
Weighted average number of common shares B outstanding (in million) | 559 | |||
Basic earnings per common share (EUR per share) from continuing and discontinued operations | 0.94 | |||
Basic earnings per common share B (EUR per share) from continuing and discontinued operations | 0.02 | |||
Continuing operations | ||||
Net result attributable to owners of Aegon Ltd from continuing operations | 1,019 | |||
Coupons on perpetual securities | (39 | ) | ||
Net result attributable to owners for basic earnings per share calculation from continuing operations | 981 | |||
Net result attributable to common shareholders from continuing operations | 974 | |||
Net result attributable to common shareholders B from continuing operations | 7 | |||
Weighted average number of common shares outstanding (in million) | 2,043 | |||
Weighted average number of common shares B outstanding (in million) | 559 | |||
Basic earnings per common share (EUR per share) from continuing operations | 0.48 | |||
Basic earnings per common share B (EUR per share) from continuing operations | 0.01 | |||
Discontinued operations | ||||
Net result attributable to owners of Aegon Ltd from discontinued operations | 960 | |||
Coupons on perpetual securities | - | |||
Net result attributable to owners for basic earnings per share calculation from discontinued operations | 960 | |||
Net result attributable to common shareholders from discontinued operations | 954 | |||
Net result attributable to common shareholders B from discontinued operations | 7 | |||
Weighted average number of common shares outstanding (in million) | 2,043 | |||
Weighted average number of common shares B outstanding (in million) | 559 | |||
Basic earnings per common share (EUR per share) from discontinued operations | 0.47 | |||
Basic earnings per common share B (EUR per share) from discontinued operations | 0.01 |
2021 | ||||
Gains (losses) related to the ineffectiveness portion of designated fair value hedges | 3 |
Notes to the consolidated financial statements Note 46 | ||||
Hedge ineffectiveness and reclassification of gains (losses) | 2021 | |||
Hedge ineffectiveness on cash flow hedges | 1 | |||
Gains (losses) reclassified from equity into the income statement | (38 | ) | ||
Expected deferred gain (loss) to be reclassified from equity into net result during the next 12 months | 113 |
Note | 2021 | |||||||
Share capital – par value | 321 | |||||||
Share premium | 7,033 | |||||||
Total share capital | 7,354 | |||||||
Retained earnings | 12,166 | |||||||
Treasury shares | (273 | ) | ||||||
Total retained earnings | 11,892 | |||||||
Revaluation reserves | 46.19.1 | 6,442 | ||||||
Remeasurement of defined benefit plans | 46.19.2 | (2,199 | ) | |||||
Other reserves | 46.19.3 | 325 | ||||||
Total shareholders’ equity | 23,813 |
Available-for-sale investments | Real estate held for own use | Cash flow hedging reserve | Total | |||||||||||||
At January 1, 2021 | 6,248 | 35 | 1,197 | 7,480 | ||||||||||||
Gross revaluation | (3,930 | ) | (4 | ) | (122 | ) | (4,057 | ) | ||||||||
Shadow accounting adjustment | 2,759 | - | - | 2,759 | ||||||||||||
Net (gains) / losses transferred to income statement | (450 | ) | - | (106 | ) | (556 | ) | |||||||||
Foreign currency translation differences | 362 | 1 | 84 | 447 | ||||||||||||
Tax effect | 322 | 1 | 47 | 370 | ||||||||||||
Other | (1 | ) | - | - | (1 | ) | ||||||||||
At December 31, 2021 | 5,309 | 32 | 1,100 | 6,442 |
2021 | ||||
Shares | 49 | |||
Debt securities | 5,276 | |||
Other | (15 | ) | ||
Revaluation reserve for available-for-sale | 5,309 |
Annual Report on Form 20-F 2023 | 359 |
![]() | About Aegon Governance and risk management Financial information | |||
2021 | ||||
At January 1 | (2,534 | ) | ||
Remeasurements of defined benefit plans | 501 | |||
Tax effect | (102 | ) | ||
Net exchange differences | (65 | ) | ||
At December 31, 2021 | (2,199 | ) |
Foreign currency translation reserve | Net foreign investment hedging reserve | Equity movements of joint ventures and associates | Total | |||||||||||||
At January 1, 2021 | (403 | ) | (199 | ) | 48 | (554 | ) | |||||||||
Movement in foreign currency translation and net foreign investment hedging reserves | 1,013 | (165 | ) | - | 848 | |||||||||||
Disposal of a business | 10 | (2 | ) | - | 8 | |||||||||||
Tax effect | (24 | ) | 27 | - | 3 | |||||||||||
Equity movements of joint ventures | - | - | 25 | 25 | ||||||||||||
Equity movements of associates | - | - | (6 | ) | (6 | ) | ||||||||||
At December 31, 2021 | 596 | (338 | ) | 67 | 325 |
Notes to the consolidated financial statements Note 46 | ||||
![]() | 2021 | |||
0.9 | ||||
CEO Meeting | 4.9 | |||
Key Management | 27.5 | |||
- In fixed compensation | 16.8 | |||
- In cash based variable compensation | 3.6 | |||
- In share based variable compensation | 3.2 | |||
- In pension contributions | 2.8 | |||
- In other benefits | 1.1 |
2021 | 2020 2) | 2019 | ||||||||||
Supervisory Board 1) | 0.9 | 0.8 | 1.0 | |||||||||
Executive Board | 4.9 | 5.9 | 5.8 | |||||||||
Key Management | 27.2 | 24.8 | 26.3 | |||||||||
In fixed compensation | 16.8 | 14.2 | 14.3 | |||||||||
In cash based variable compensation | 3.4 | 3.3 | 3.6 | |||||||||
In share based variable compensation | 3.1 | 2.9 | 3.2 | |||||||||
In pension contributions | 2.8 | 3.2 | 3.9 | |||||||||
In other benefits | 1.1 | 1.2 | 1.3 |
1 | Based on a Decree of the Dutch State Secretary of Finance which came into force as from May 7, 2021, the |
Amounts in EUR millions | 2021 | |||
Discontinued operations | ||||
Premium income | 1,713 | |||
Investment income | 2,074 | |||
Fee and | 331 | |||
Other revenues | - | |||
Total revenues | 4,118 | |||
Income from reinsurance ceded | 26 | |||
Results from financial transactions | (444 | ) | ||
Other income | 27 | |||
Total income | 3,727 | |||
Premiums paid to reinsurers | 99 | |||
Policyholder claims and benefits | 1,755 | |||
Profit sharing and rebates | 7 | |||
Commissions and expenses | 698 | |||
Impairment charges / (reversals) | (2 | ) | ||
Interest charges and related fees | 89 | |||
Other charges | 3 | |||
Total charges | 2,649 | |||
Result from discontinued operations before share in (loss) of joint ventures, associates and tax |
1,078 | ||||
Share in | 33 | |||
Share in | 127 | |||
Result before tax from discontinued operations | 1,237 | |||
Income tax (expense) / benefit | (276 | ) | ||
Result after tax from discontinued operations | 960 | |||
Impairment loss on remeasurement of the disposal group | - | |||
Net result from discontinued operations after remeasurement | 960 |
Annual Report on Form 20-F 2023 | 361 |
![]() | Financial information | |||
Amounts in EUR millions | 2021 | |||
Net result from discontinued operations | 960 | |||
Items that will not be reclassified to | ||||
Changes in revaluation reserve real estate held for own use | 1 | |||
Remeasurements of defined benefit plans | 156 | |||
Income tax relating to items that will not be reclassified | (24 | ) | ||
Items that may be reclassified subsequently to profit or loss: | ||||
Gains / (losses) on revaluation of available-for-sale | 155 | |||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale | (114 | ) | ||
Equity movements of joint ventures | - | |||
Equity movements of associates | (1 | ) | ||
Income tax relating to items that may be reclassified | (18 | ) | ||
Other | 1 | |||
Total other comprehensive income / (loss) from discontinued operations | 156 | |||
Total comprehensive income / (loss) from discontinued operations | 1,117 |
Amounts in EUR millions | 2021 | |||
Net cash inflow (outflow) from operating activities | (167 | ) | ||
Net cash inflow (outflow) from investing activities | 31 | |||
Net cash inflow (outflow) from financing activities | (1,835 | ) | ||
Net cash inflow (outflow) from discontinued operations | (1,972 | ) |
Shares held in Aegon at December 31 | 2021 | 2020 | ||||||
Ben J. Noteboom | 23,500 | 23,500 | ||||||
Dona D. Young | 13,260 | 13,260 | ||||||
Total | 36,760 | 36,760 |
Segment Amounts in EUR million | Deferred policy acquisition costs | Future policy benefits | Unearned premiums | Other policy claims and benefits | Premium revenue | |||||||||||||||
2021 | ||||||||||||||||||||
Americas | 8,648 | 192,099 | 6,335 | 1,934 | 8,190 | |||||||||||||||
The Netherlands | 235 | 67,226 | 50 | 1,019 | 1,713 | |||||||||||||||
United Kingdom | 796 | 111,458 | - | - | 4,616 | |||||||||||||||
International | 391 | 9,735 | 163 | 110 | 924 | |||||||||||||||
Holding and other activities | - | - | - | - | - | |||||||||||||||
Eliminations | - | (1,611 | ) | - | - | - | ||||||||||||||
Total | 10,070 | 378,907 | 6,548 | 3,062 | 15,444 |
Amounts in EUR million | Net investment income | Benefits, claims and losses | Amortization of deferred policy acquisition costs | Other operating expenses | Premiums written | |||||||||||||||
2021 | ||||||||||||||||||||
Americas | 2,909 | 10,111 | 741 | 3,003 | 5,023 | |||||||||||||||
The Netherlands | 2,088 | 3,249 | - | 806 | 1,614 | |||||||||||||||
United Kingdom | 1,691 | 7,343 | 96 | 523 | 4,419 | |||||||||||||||
International | 298 | 757 | 62 | 345 | 870 | |||||||||||||||
Asset Management | - | - | - | 411 | - | |||||||||||||||
Holding and other activities | (4 | ) | - | - | 180 | - | ||||||||||||||
Eliminations | (15 | ) | - | - | (183 | ) | - | |||||||||||||
Total | 6,967 | 21,460 | 899 | 5,085 | 11,926 |
![]() | ||||
Amounts in EUR million | Gross amount | Ceded to other companies | Assumed from other companies | Net amount | % of amount assumed to net | |||||||||||||||
For the year ended December 31, 2021 | ||||||||||||||||||||
Life insurance in force | 977,293 | 611,912 | 397,882 | 763,263 | 52 | % | ||||||||||||||
Premiums | ||||||||||||||||||||
Life insurance | 13,400 | 3,326 | - | 10,074 | - | |||||||||||||||
Non-life insurance | 2,044 | 192 | - | 1,852 | - | |||||||||||||||
Total premiums | 15,444 | 3,518 | - | 11,926 | - |
Amounts in EUR million | 2021 | |||
Balance at January 1 | 276 | |||
Addition charged to earnings | 12 | |||
Amounts written off and other changes | (57 | ) | ||
Transfers to disposal groups | - | |||
Currency translation | 7 | |||
Balance at December 31 | 238 | |||
The provisions can be analyzed as follows: | ||||
Mortgages | 6 | |||
Other loans | 112 | |||
Receivables | 120 | |||
Total | 238 |
Annual Report on Form 20-F 2023 | 363 |
![]() | ||||
269 | 1 | |||
269 | 2 | |||
269 | 3 | |||
269 | 4 | |||
270 | 5 | |||
270 | 6 | |||
270 | 7 | |||
270 | 8 | |||
271 | 9 | |||
271 | 10 | |||
271 | 11 | |||
271 | 12 | |||
271 | 13 | |||
273 | 14 | |||
276 | 15 | |||
277 | 16 | |||
277 | 17 | |||
277 | 18 | |||
278 | 19 | |||
278 | 20 | |||
278 | 21 | |||
278 | 22 | |||
279 | 23 |
Financial statements of Aegon Ltd. | ||||
Amounts in EUR million | Note | 2021 | 2020 | Note | 2023 | 2022 1) | ||||||||||||||||||
Result | ||||||||||||||||||||||||
Result | ||||||||||||||||||||||||
Result | ||||||||||||||||||||||||
Result | ||||||||||||||||||||||||
Investment Income | ||||||||||||||||||||||||
Investment Income | ||||||||||||||||||||||||
Investment Income | ||||||||||||||||||||||||
Investment Income | 3 | 13 | 10 | 3 | 88 | 21 | ||||||||||||||||||
Total revenues | 13 | 10 | ||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||
Total revenues | 88 | 21 | ||||||||||||||||||||||
Results from financial transactions | ||||||||||||||||||||||||
Results from financial transactions | ||||||||||||||||||||||||
Results from financial transactions | ||||||||||||||||||||||||
Results from financial transactions | 4 | 3 | 2 | 4 | 21 | (30 | ) | |||||||||||||||||
Total result | 16 | 12 | ||||||||||||||||||||||
Total result | ||||||||||||||||||||||||
Total result | ||||||||||||||||||||||||
Total result | 108 | (9 | ) | |||||||||||||||||||||
Charges | ||||||||||||||||||||||||
Charges | ||||||||||||||||||||||||
Charges | ||||||||||||||||||||||||
Charges | ||||||||||||||||||||||||
Commissions and expenses | 5 | 80 | 71 | |||||||||||||||||||||
Commissions and expenses | ||||||||||||||||||||||||
Commissions and expenses | ||||||||||||||||||||||||
Commissions and expenses | 5 | 104 | 68 | |||||||||||||||||||||
Interest charges and related fees | ||||||||||||||||||||||||
Interest charges and related fees | ||||||||||||||||||||||||
Interest charges and related fees | ||||||||||||||||||||||||
Interest charges and related fees | 6 | 129 | 126 | 6 | 137 | 127 | ||||||||||||||||||
Total charges | 210 | 197 | ||||||||||||||||||||||
Total charges | ||||||||||||||||||||||||
Total charges | ||||||||||||||||||||||||
Total charges | 241 | 196 | ||||||||||||||||||||||
Result before tax | (193 | ) | (185 | ) | ||||||||||||||||||||
Result before tax | ||||||||||||||||||||||||
Result before tax | ||||||||||||||||||||||||
Result before tax | (133 | ) | (204 | ) | ||||||||||||||||||||
Income Tax | 7 | 54 | 39 | |||||||||||||||||||||
Income tax | ||||||||||||||||||||||||
Income tax | ||||||||||||||||||||||||
Income tax | ||||||||||||||||||||||||
Income tax | 7 | 19 | 47 | |||||||||||||||||||||
Result after tax | ||||||||||||||||||||||||
Result after tax | ||||||||||||||||||||||||
Result after tax | ||||||||||||||||||||||||
Result after tax | (139 | ) | (146 | ) | (114 | ) | (158 | ) | ||||||||||||||||
Net result group companies | 8 | 2,119 | 0 | |||||||||||||||||||||
Net result group companies | ||||||||||||||||||||||||
Net result group companies | ||||||||||||||||||||||||
Net result group companies | 8 | (65 | ) | (411 | ) | |||||||||||||||||||
Net result | 1,980 | (146 | ) | |||||||||||||||||||||
Net result | ||||||||||||||||||||||||
Net result | ||||||||||||||||||||||||
Net result | (179 | ) | (569 | ) |
1 | Comparatives have been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 to the financial statements includes further details on the changes in accounting policies. |
Annual Report on Form 20-F 2023 | 365 |
![]() | About Aegon Governance and risk management Financial | |||
Before profit appropriation, amounts in EUR million | Note | 2021 | 2020 | Note | 2023 | 2022 1) | ||||||||||||||||||
Non-current assets | ||||||||||||||||||||||||
Non-current assets | ||||||||||||||||||||||||
Non-current assets | ||||||||||||||||||||||||
Non-current assets | ||||||||||||||||||||||||
Financial fixed assets | ||||||||||||||||||||||||
Financial fixed assets | ||||||||||||||||||||||||
Financial fixed assets | ||||||||||||||||||||||||
Financial fixed assets | ||||||||||||||||||||||||
Shares in group companies | 8 | 26,042 | 24,846 | |||||||||||||||||||||
Shares in group companies | ||||||||||||||||||||||||
Shares in group companies | ||||||||||||||||||||||||
Shares in group companies | 8 | 8,536 | 10,338 | |||||||||||||||||||||
Loans to group companies | 9 | 1,829 | 1,392 | |||||||||||||||||||||
Loans to group companies | ||||||||||||||||||||||||
Loans to group companies | ||||||||||||||||||||||||
Loans to group companies | 9 | 780 | 1,435 | |||||||||||||||||||||
Other non-current assets | ||||||||||||||||||||||||
Other non-current assets | ||||||||||||||||||||||||
Other non-current assets | ||||||||||||||||||||||||
Other non-current assets | 10 | 138 | 148 | 10 | - | 109 | ||||||||||||||||||
28,009 | 26,386 | |||||||||||||||||||||||
9,316 | 11,882 | |||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Receivables | ||||||||||||||||||||||||
Receivables | ||||||||||||||||||||||||
Receivables | ||||||||||||||||||||||||
Receivables | ||||||||||||||||||||||||
Receivables from group companies | ||||||||||||||||||||||||
Receivables from group companies | ||||||||||||||||||||||||
Receivables from group companies | ||||||||||||||||||||||||
Receivables from group companies | 11 | 35 | 56 | 11 | 138 | 31 | ||||||||||||||||||
Other receivables | 11 | 181 | 100 | |||||||||||||||||||||
Other receivables | ||||||||||||||||||||||||
Other receivables | ||||||||||||||||||||||||
Other receivables | 11 | 77 | 236 | |||||||||||||||||||||
Other current assets | 12 | 90 | 198 | |||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||
Other current assets | 12 | 48 | 123 | |||||||||||||||||||||
Accrued interest and rent | ||||||||||||||||||||||||
Accrued interest and rent | ||||||||||||||||||||||||
Accrued interest and rent | ||||||||||||||||||||||||
Accrued interest and rent | 6 | 9 | 18 | 9 | ||||||||||||||||||||
312 | 363 | |||||||||||||||||||||||
281 | 398 | |||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||
Cash and cash equivalents | 1,204 | 887 | ||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||
Cash and cash equivalents | 2,304 | 1,619 | ||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||
Total assets | 29,524 | 27,636 | 11,900 | 13,899 | ||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Share capital | 13 | 321 | 320 | |||||||||||||||||||||
Share capital | ||||||||||||||||||||||||
Share capital | ||||||||||||||||||||||||
Share capital | 13 | 265 | 319 | |||||||||||||||||||||
Paid-in surplus | 14 | 7,033 | 7,160 | |||||||||||||||||||||
Share premium | ||||||||||||||||||||||||
Share premium | ||||||||||||||||||||||||
Share premium | ||||||||||||||||||||||||
Share premium | 14 | 6,853 | 6,853 | |||||||||||||||||||||
Revaluation account | ||||||||||||||||||||||||
Revaluation account | ||||||||||||||||||||||||
Revaluation account | ||||||||||||||||||||||||
Revaluation account | 14 | 6,453 | 7,491 | 14 | (3,760 | ) | (4,551 | ) | ||||||||||||||||
Legal reserves – foreign currency translation reserve | 14 | 258 | (601 | ) | ||||||||||||||||||||
Legal reserves – foreign currency translation reserve | ||||||||||||||||||||||||
Legal reserves – foreign currency translation reserve | ||||||||||||||||||||||||
Legal reserves – foreign currency translation reserve | 14 | 474 | 736 | |||||||||||||||||||||
Legal reserves in respect of group companies | ||||||||||||||||||||||||
Legal reserves in respect of group companies | ||||||||||||||||||||||||
Legal reserves in respect of group companies | ||||||||||||||||||||||||
Legal reserves in respect of group companies | 14 | 2,316 | 1,710 | 14 | 1,134 | 2,821 | ||||||||||||||||||
Retained earnings, including treasury shares | 14 | 7,652 | 8,617 | |||||||||||||||||||||
Retained earnings, including treasury shares | ||||||||||||||||||||||||
Retained earnings, including treasury shares | ||||||||||||||||||||||||
Retained earnings, including treasury shares | 14 | 3,693 | 4,771 | |||||||||||||||||||||
Remeasurement of defined benefit plans of group companies | 14 | (2,199 | ) | (2,534 | ) | |||||||||||||||||||
Remeasurement of defined benefit plans of group companies | ||||||||||||||||||||||||
Remeasurement of defined benefit plans of group companies | ||||||||||||||||||||||||
Remeasurement of defined benefit plans of group companies | 14 | (1,006 | ) | (1,565 | ) | |||||||||||||||||||
Net result | ||||||||||||||||||||||||
Net result | ||||||||||||||||||||||||
Net result | ||||||||||||||||||||||||
Net result | 14 | 1,980 | (146 | ) | 14 | (179 | ) | (569 | ) | |||||||||||||||
23,813 | 22,018 | |||||||||||||||||||||||
7,475 | 8,815 | |||||||||||||||||||||||
Other equity instruments | ||||||||||||||||||||||||
Other equity instruments | ||||||||||||||||||||||||
Other equity instruments | ||||||||||||||||||||||||
Other equity instruments | 15 | 2,363 | 2,569 | 15 | 1,951 | 1,943 | ||||||||||||||||||
Total equity | 26,176 | 24,586 | ||||||||||||||||||||||
Total equity | ||||||||||||||||||||||||
Total equity | ||||||||||||||||||||||||
Total equity | 9,426 | 10,758 | ||||||||||||||||||||||
Provisions | ||||||||||||||||||||||||
Provisions | ||||||||||||||||||||||||
Provisions | ||||||||||||||||||||||||
Provisions | ||||||||||||||||||||||||
Deferred tax liability | ||||||||||||||||||||||||
Deferred tax liability | ||||||||||||||||||||||||
Deferred tax liability | ||||||||||||||||||||||||
Deferred tax liability | 3 | - | ||||||||||||||||||||||
Non-current liabilities | ||||||||||||||||||||||||
Non-current liabilities | ||||||||||||||||||||||||
Non-current liabilities | ||||||||||||||||||||||||
Non-current liabilities | ||||||||||||||||||||||||
Subordinated borrowings | 16 | 1,396 | 1,345 | |||||||||||||||||||||
Subordinated borrowings | ||||||||||||||||||||||||
Subordinated borrowings | ||||||||||||||||||||||||
Subordinated borrowings | 16 | 1,418 | 1,442 | |||||||||||||||||||||
Long-term borrowings | ||||||||||||||||||||||||
Long-term borrowings | ||||||||||||||||||||||||
Long-term borrowings | ||||||||||||||||||||||||
Long-term borrowings | 17 | 1,266 | 1,218 | 17 | 745 | 1,226 | ||||||||||||||||||
2,662 | 2,563 | |||||||||||||||||||||||
2,163 | 2,669 | |||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Current liabilities | 18 | |||||||||||||||||||||||
Loans from group companies | 7 | 6 | ||||||||||||||||||||||
Loans from group companies | ||||||||||||||||||||||||
Loans from group companies | ||||||||||||||||||||||||
Loans from group companies | 4 | 13 | ||||||||||||||||||||||
Payables to group companies | ||||||||||||||||||||||||
Payables to group companies | ||||||||||||||||||||||||
Payables to group companies | ||||||||||||||||||||||||
Payables to group companies | 422 | 44 | 73 | 147 | ||||||||||||||||||||
Other current liabilities | 227 | 406 | ||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||
Other current liabilities | 202 | 282 | ||||||||||||||||||||||
Accruals and deferred income | ||||||||||||||||||||||||
Accruals and deferred income | ||||||||||||||||||||||||
Accruals and deferred income | ||||||||||||||||||||||||
Accruals and deferred income | 31 | 30 | 30 | 31 | ||||||||||||||||||||
686 | 486 | |||||||||||||||||||||||
309 | 472 | |||||||||||||||||||||||
Total liabilities | ||||||||||||||||||||||||
Total liabilities | ||||||||||||||||||||||||
Total liabilities | ||||||||||||||||||||||||
Total liabilities | 3,349 | 3,049 | 2,475 | 3,141 | ||||||||||||||||||||
Total equity and liabilities | 29,524 | 27,636 | ||||||||||||||||||||||
Total equity and liabilities | ||||||||||||||||||||||||
Total equity and liabilities | ||||||||||||||||||||||||
Total equity and liabilities | 11,900 | 13,899 |
1 | Comparatives have been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 to the financial statements includes further details on the changes in accounting policies. |
Notes to the financial statements of Aegon Ltd.Note 1 | ||||
Annual Report on Form 20-F 2023 | 367 |
![]() | About Aegon Governance and risk management Financial information | |||
Impact of changes in accounting policies on the income statement | Note | December 31, 2022 (as previously reported) 1) | Impact of the change in account- ing policies (IFRS 9 and 17) | December 31, 2022 (restated) | ||||||||||||
Net result group companies | 8 | (1,275 | ) | 864 | (411 | ) | ||||||||||
Impact on net result | (1,433 | ) | 864 | (569 | ) |
1 | As reported in Aegon’s 2022 Integrated Annual Report dated March 15, 2023. |
Impact of changes in accounting policies on the statement of changes in equity | Note | December 31, 2022 (as previously reported) 1) | Impact of the change in account- ing policies (IFRS 9 and 17) | December 31, 2022 (restated) | ||||||||||||
Share capital | 13 | 319 | - | 319 | ||||||||||||
Share premium | 14 | 6,853 | - | 6,853 | ||||||||||||
Revaluation account | 14 | (4,465 | ) | (85 | ) | (4,551 | ) | |||||||||
Legal reserves – foreign currency translation reserve | 14 | 1,008 | (272 | ) | 736 | |||||||||||
Legal reserves in respect of group companies | 14 | 2,439 | 382 | 2,821 | ||||||||||||
Retained earnings, including treasury shares | 14 | 8,916 | (4,145 | ) | 4,771 | |||||||||||
Remeasurement of defined benefit plans of group companies | 14 | (1,565 | ) | - | (1,565 | ) | ||||||||||
Net result | 14 | (1,433 | ) | 864 | (569 | ) | ||||||||||
Shareholders’ equity | 12,071 | (3,256 | ) | 8,815 |
1 | As reported in Aegon’s 2022 Integrated Annual Report dated March 15, 2023. |
Impact of changes in accounting policies on the statement of financial position | Note | December 31, 2022 (as previously reported) 1) | Impact of the change in account- ing policies (IFRS 9 and 17) | December 31, 2022 (restated) | ||||||||||||
Assets | ||||||||||||||||
Shares in group companies | 8 | 13,594 | (3,256 | ) | 10,338 | |||||||||||
Equity and liabilities | ||||||||||||||||
Shareholders’ equity | 14 | 12,071 | (3,256 | ) | 8,815 |
1 | As reported in Aegon’s 2022 Integrated Annual Report dated March 15, 2023. |
2021 | 2020 | |||||||||
Interest income from intercompany loans | 12 | 16 | ||||||||
Interest income from derivatives | 1 | (6 | ) | |||||||
Total | 13 | 10 |
2023 | 2022 | |||||||
Interest income from short-term investments | 82 | - | ||||||
Interest income from intercompany loans | 20 | 14 | ||||||
Interest income from derivatives | (14 | ) | 7 | |||||
Total | 88 | 21 |
2021 | 2020 | 2023 | 2022 | |||||||||||||||
Net fair value change of derivatives | 5 | (2 | ) | |||||||||||||||
Net fair value change of derivatives | ||||||||||||||||||
Net fair value change of derivatives | ||||||||||||||||||
Net fair value change of derivatives | 19 | (30 | ) | |||||||||||||||
Net foreign currency gains and (losses) | (1 | ) | 4 | |||||||||||||||
Net foreign currency gains and (losses) | ||||||||||||||||||
Net foreign currency gains and (losses) | ||||||||||||||||||
Net foreign currency gains and (losses) | 1 | - | ||||||||||||||||
Total | 3 | 2 | 21 | (30 | ) |
![]() | Notes to the financial statements of Aegon Ltd.Note 5 | |||
2021 | 2020 | 2023 | 2022 | |||||||||||||||
Employee expenses | 84 | 86 | ||||||||||||||||
Employee expenses | ||||||||||||||||||
Employee expenses | ||||||||||||||||||
Employee expenses | 82 | 82 | ||||||||||||||||
Administration expenses | ||||||||||||||||||
Administration expenses | ||||||||||||||||||
Administration expenses | ||||||||||||||||||
Administration expenses | 71 | 58 | 80 | 63 | ||||||||||||||
Cost sharing to group companies | (75 | ) | (72 | ) | ||||||||||||||
Cost sharing to group companies | ||||||||||||||||||
Cost sharing to group companies | ||||||||||||||||||
Cost sharing to group companies | (58 | ) | (76 | ) | ||||||||||||||
Total | 80 | 71 | 104 | 68 |
2021 | 2020 | |||||||||||||||||
2023 | 2022 | |||||||||||||||||
Subordinated borrowings | 68 | 67 | ||||||||||||||||
Subordinated borrowings | ||||||||||||||||||
Subordinated borrowings | ||||||||||||||||||
Subordinated borrowings | 69 | 72 | ||||||||||||||||
Borrowings | ||||||||||||||||||
Borrowings | ||||||||||||||||||
Borrowings | ||||||||||||||||||
Borrowings | 54 | 50 | 53 | 52 | ||||||||||||||
Other | 8 | 8 | ||||||||||||||||
Other | ||||||||||||||||||
Other | ||||||||||||||||||
Other | 14 | 3 | ||||||||||||||||
Total | 129 | 126 | 137 | 127 |
2021 | 2020 | |||||||||||||||||
Current Tax | ||||||||||||||||||
2023 | 2022 | |||||||||||||||||
Current Tax | 54 | 39 | ||||||||||||||||
Current tax | ||||||||||||||||||
Current tax | ||||||||||||||||||
Current tax | ||||||||||||||||||
Current tax | ||||||||||||||||||
Current tax | ||||||||||||||||||
Current tax | ||||||||||||||||||
Current tax | ||||||||||||||||||
Current tax | 19 | 47 | ||||||||||||||||
Income tax for the period (result) / charge | 54 | 39 | 19 | 47 | ||||||||||||||
Reconciliation between standard and effective tax | ||||||||||||||||||
Reconciliation between standard and effective tax | ||||||||||||||||||
Reconciliation between standard and effective tax | ||||||||||||||||||
Reconciliation between standard and effective tax | ||||||||||||||||||
Result before tax | (193 | ) | (185 | ) | ||||||||||||||
Result before tax | ||||||||||||||||||
Result before tax | ||||||||||||||||||
Result before tax | (133 | ) | (204 | ) | ||||||||||||||
Tax on result on Dutch corporate result tax rate | 48 | 46 | ||||||||||||||||
Tax on result at Dutch corporate result tax rate | ||||||||||||||||||
Tax on result at Dutch corporate result tax rate | ||||||||||||||||||
Tax on result at Dutch corporate result tax rate | ||||||||||||||||||
Tax on result at Dutch corporate result tax rate | 34 | 53 | ||||||||||||||||
Differences due to the effect of: | ||||||||||||||||||
Differences due to the effect of: | ||||||||||||||||||
Differences due to the effect of: | ||||||||||||||||||
Differences due to the effect of: | ||||||||||||||||||
Tax rate changes | 4 | - | ||||||||||||||||
Prior year adjustments | ||||||||||||||||||
Prior year adjustments | ||||||||||||||||||
Prior year adjustments | ||||||||||||||||||
Prior year adjustments | (2 | ) | - | |||||||||||||||
Change in uncertain tax positions | 8 | - | ||||||||||||||||
Non deductible expenses | ||||||||||||||||||
Non deductible expenses | ||||||||||||||||||
Non deductible expenses | ||||||||||||||||||
Non deductible expenses | (7 | ) | (7 | ) | (14 | ) | (7 | ) | ||||||||||
Total | 54 | 39 | ||||||||||||||||
Total | ||||||||||||||||||
Total | ||||||||||||||||||
Total | 19 | 47 |
2023 | 2022 | |||||||
On January 1 | 10,338 | 26,042 | ||||||
Restated opening balance 1) | - | (12,795 | ) | |||||
On January 1 (restated) | 10,338 | 13,247 | ||||||
Capital contributions and acquisitions | 3,752 | 36 | ||||||
Dividend received | (6,613 | ) | (1,634 | ) | ||||
Net result for the financial year | (65 | ) | (411 | ) | ||||
Revaluations | 1,124 | (900 | ) | |||||
On December 31 | 8,536 | 10,338 |
1 | Opening balance as per January 1, 2022, has been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 to the financial statements includes further details on the changes in accounting policies. |
2021 | 2020 | |||||||||
At January 1 | 24,846 | 25,037 | ||||||||
Capital contributions and acquisitions | 65 | 96 | ||||||||
Dividend received | (1,196 | ) | (735 | ) | ||||||
Net result for the financial year | 2,120 | - | ||||||||
Revaluations | 209 | 448 | ||||||||
At December 31 | 26,042 | 24,846 |
Annual Report on Form 20-F 2023 | 369 |
![]() | ||||
2021 | 2020 | |||||||||||||||
At January 1 | 1,392 | 1,337 | ||||||||||||||
Additions / (repayments) | 308 | 110 | ||||||||||||||
2023 | 2022 | |||||||||||||||
On January 1 | ||||||||||||||||
On January 1 | ||||||||||||||||
On January 1 | ||||||||||||||||
On January 1 | 1,435 | 1,829 | ||||||||||||||
Additions / (redemptions) | ||||||||||||||||
Additions / (redemptions) | ||||||||||||||||
Additions / (redemptions) | ||||||||||||||||
Additions / (redemptions) | (605 | ) | (502 | ) | ||||||||||||
Other changes | 128 | (56 | ) | |||||||||||||
Other changes | ||||||||||||||||
Other changes | ||||||||||||||||
Other changes | (52 | ) | 109 | |||||||||||||
At December 31 | 1,829 | 1,392 | ||||||||||||||
On December 31 | 780 | 1,435 | ||||||||||||||
Current | ||||||||||||||||
Current | ||||||||||||||||
Current | ||||||||||||||||
Current | 639 | 788 | 520 | 932 | ||||||||||||
Non-current | 1,190 | 604 | ||||||||||||||
Non-current | ||||||||||||||||
Non-current | ||||||||||||||||
Non-current | 260 | 503 |
Issued and outstanding capital | 2021 | 2020 | ||||||||||||||
Issued and outstanding capital | ||||||||||||||||
Issued and outstanding capital | ||||||||||||||||
Issued and outstanding capital | 2023 | 2022 | ||||||||||||||
Common shares | ||||||||||||||||
Common shares | ||||||||||||||||
Common shares | ||||||||||||||||
Common shares | 253 | 252 | 218 | 253 | ||||||||||||
Common shares B | 68 | 69 | ||||||||||||||
Common shares B | ||||||||||||||||
Common shares B | ||||||||||||||||
Common shares B | 47 | 66 | ||||||||||||||
Total share capital | 321 | 320 | 265 | 319 | ||||||||||||
Common shares | 2021 | 2020 | ||||||||||||||
Authorized share capital | 720 | 720 | ||||||||||||||
Number of authorized shares (in million) | 6,000 | 6,000 | ||||||||||||||
Par value in cents per share | 12 | 12 | ||||||||||||||
Common shares B | 2021 | 2020 | ||||||||||||||
Authorized share capital | 360 | 360 | ||||||||||||||
Number of authorized shares (in million) | 3,000 | 3,000 | ||||||||||||||
Par value in cents per share | 12 | 12 |
Common shares | 2023 | 2022 | ||||||
Authorized share capital | 480 | 720 | ||||||
Number of authorized shares (in million) | 4,000 | 6,000 | ||||||
Par value in cents per share | 12 | 12 |
Common shares B | 2023 | 2022 | ||||||
Authorized share capital | 240 | 360 | ||||||
Number of authorized shares (in million) | 2,000 | 3,000 | ||||||
Par value in cents per share | 12 | 12 |
Notes to the financial statements of Aegon Ltd.Note 13 | ||||
Common shares | Common shares B | |||||||||||||||||||||||||||||||
Common shares | Common shares B | |||||||||||||||||||||||||||||||
Number of shares (thousands) | Total amount | Number of shares (thousands) | Total amount | |||||||||||||||||||||||||||||
At January 1, 2020 | 2,105,139 | 253 | 585,022 | 70 | ||||||||||||||||||||||||||||
Number of shares (thousands) | Total amount | Number of shares (thousands) | Total amount | |||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||
On January 1, 2022 | 2,106,313 | 253 | 568,839 | 68 | ||||||||||||||||||||||||||||
Shares withdrawn | ||||||||||||||||||||||||||||||||
Shares withdrawn | ||||||||||||||||||||||||||||||||
Shares withdrawn | ||||||||||||||||||||||||||||||||
Shares withdrawn | (9,491 | ) | (1 | ) | (13,227 | ) | (2 | ) | (10,665 | ) | (1 | ) | (22,643 | ) | (3 | ) | ||||||||||||||||
Dividend | 2,466 | 0 | 0- | 0- | ||||||||||||||||||||||||||||
Dividend | ||||||||||||||||||||||||||||||||
Dividend | ||||||||||||||||||||||||||||||||
Dividend | 13,782 | 2 | - | - | ||||||||||||||||||||||||||||
At December 31, 2020 | 2,098,114 | 252 | 571,795 | 69 | ||||||||||||||||||||||||||||
On December 31, 2022 | ||||||||||||||||||||||||||||||||
On December 31, 2022 | ||||||||||||||||||||||||||||||||
On December 31, 2022 | ||||||||||||||||||||||||||||||||
On December 31, 2022 | 2,109,430 | 253 | 546,196 | 66 | ||||||||||||||||||||||||||||
Shares withdrawn | (2,466 | ) | (0 | ) | (2,956 | ) | (0 | ) | ||||||||||||||||||||||||
Shares withdrawn | ||||||||||||||||||||||||||||||||
Shares withdrawn | ||||||||||||||||||||||||||||||||
Shares withdrawn | (294,703 | ) | (35 | ) | (156,437 | ) | (19 | ) | ||||||||||||||||||||||||
Dividend | 10,665 | 1 | 0- | 0- | ||||||||||||||||||||||||||||
At December 31, 2021 | 2,106,313 | 253 | 568,839 | 68 | ||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||
On December 31, 2023 | ||||||||||||||||||||||||||||||||
On December 31, 2023 | 1,814,727 | 218 | 389,759 | 47 |
Weighted average number of common shares (thousands) | Weighted average number of common shares B (thousands) | |||||
2020 | 2,101,749 | 579,312 | ||||
2021 | 2,101,231 | 570,629 |
Weighted average number of common shares (thousands) | Weighted average number of common shares B (thousands) | |||||
2022 | 2,107,315 | 559,906 | ||||
2023 | 2,067,119 | 523,149 |
Annual Report on Form 20-F 2023 | 371 |
![]() | About Aegon Governance and risk management Financial information | |||
Share capital | Share premium | Revaluation account | Legal reserves FCTR | Legal reserves group companies | Retained earnings | Remeasurement of defined benefit plans of group companies | Treasury shares | Net result | Total | |||||||||||||||||||||||||||||||
On January 1, 2023 1) | 319 | 6,853 | (4,551 | ) | 736 | 2,821 | 5,439 | (1,565 | ) | (668 | ) | (569 | ) | 8,815 | ||||||||||||||||||||||||||
Net result 2022 retained | - | - | - | - | - | (569 | ) | - | - | 569 | - | |||||||||||||||||||||||||||||
Net result 2023 recognized in the income statement | - | - | - | - | - | - | - | (179 | ) | (179 | ) | |||||||||||||||||||||||||||||
Total net result | - | - | - | - | - | (569 | ) | - | - | 390 | (179 | ) | ||||||||||||||||||||||||||||
Foreign currency translation differences and movement in foreign investment hedging reserves | - | - | - | (262 | ) | - | - | 14 | - | - | (248 | ) | ||||||||||||||||||||||||||||
Changes in revaluation in subsidiaries | - | - | 799 | - | - | - | - | - | - | 799 | ||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | - | (6 | ) | - | - | - | - | - | - | (6 | ) | ||||||||||||||||||||||||||||
Remeasurement of defined benefit plans of group companies | - | - | - | - | - | - | 545 | - | - | 545 | ||||||||||||||||||||||||||||||
Disposal of group assets | - | - | - | - | - | (634 | ) | - | - | - | (634 | ) | ||||||||||||||||||||||||||||
Changes and transfer to legal reserve | - | - | (2 | ) | - | (1,687 | ) | 1,662 | - | - | - | (27 | ) | |||||||||||||||||||||||||||
Other | - | - | - | - | - | 9 | - | - | - | 9 | ||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) | - | - | 791 | (262 | ) | (1,687 | ) | 1,037 | 559 | - | - | 438 | ||||||||||||||||||||||||||||
Shares withdrawn | (54 | ) | - | - | - | - | 54 | - | - | - | - | |||||||||||||||||||||||||||||
Dividends paid on common shares | - | - | - | - | - | (495 | ) | - | - | - | (495 | ) | ||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | - | - | - | - | (1,374 | ) | - | 322 | - | (1,052 | ) | ||||||||||||||||||||||||||||
Dividend withholding tax reduction | - | - | - | - | - | 1 | - | - | - | 1 | ||||||||||||||||||||||||||||||
Coupons on perpetual securities | - | - | - | - | - | (48 | ) | - | - | - | (48 | ) | ||||||||||||||||||||||||||||
Incentive plans | - | - | - | - | - | (5 | ) | - | - | - | (5 | ) | ||||||||||||||||||||||||||||
On December 31, 2023 | 265 | 6,853 | (3,760 | ) | 474 | 1,134 | 4,039 | (1,006 | ) | (346 | ) | (179 | ) | 7,475 |
1 | Opening balance as per January 1, 2023, has been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 to the financial statements includes further details on the changes in accounting policies. |
Notes to the financial statements of Aegon Note 1 | ||||
Share capital | Share premium | Revaluation account | Legal reserves FCTR | Legal reserves group companies | Retained earnings | Remeasurement of defined benefit plans of group companies | Treasury shares | Net result | Total | |||||||||||||||||||||||||||||||
Opening balance (IAS 39 / IFRS 4 on January 1, 2022 1) | 321 | 7,033 | 6,453 | 258 | 2,316 | 7,924 | (2,199 | ) | (273 | ) | 1,980 | 23,813 | ||||||||||||||||||||||||||||
IFRS 9/17 opening balance impacts | - | - | (9,021 | ) | - | - | (3,782 | ) | 8 | - | 12,795 | |||||||||||||||||||||||||||||
Restated opening balance on January 1, 2022 | 321 | 7,033 | (2,568 | ) | 258 | 2,316 | 4,142 | (2,199 | ) | (265 | ) | 1,980 | 11,018 | |||||||||||||||||||||||||||
Net result 2021 retained | - | - | - | - | - | 1,980 | - | - | (1,980 | ) | - | |||||||||||||||||||||||||||||
Net result 2022 recognized in the income statement | - | - | - | - | - | - | - | - | (569 | ) | (569 | ) | ||||||||||||||||||||||||||||
Total net result | - | - | - | - | - | 1,980 | - | - | (2,549 | ) | (569 | ) | ||||||||||||||||||||||||||||
Foreign currency translation differences and movement in foreign investment hedging reserves | - | - | - | 478 | - | - | (20 | ) | - | - | 458 | |||||||||||||||||||||||||||||
Changes in revaluation in subsidiaries | - | - | (1,966 | ) | - | - | - | - | - | - | (1,966 | ) | ||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | - | (17 | ) | - | - | 16 | - | - | - | (1 | ) | ||||||||||||||||||||||||||||
Remeasurement of defined benefit plans of group companies | - | - | - | - | - | - | 655 | - | - | 655 | ||||||||||||||||||||||||||||||
Changes and transfer to legal reserve | - | - | - | - | 506 | (573 | ) | - | - | - | (68 | ) | ||||||||||||||||||||||||||||
Other | - | - | - | - | - | 40 | - | - | - | 40 | ||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) | - | - | (1,983 | ) | 478 | 506 | (517 | ) | 635 | - | - | (881 | ) | |||||||||||||||||||||||||||
Shares issued | 2 | - | - | - | - | - | - | - | - | 2 | ||||||||||||||||||||||||||||||
Shares withdrawn | (4 | ) | - | - | - | - | - | - | - | - | (4 | ) | ||||||||||||||||||||||||||||
Dividends paid on common shares | - | (180 | ) | - | - | - | (167 | ) | - | - | - | (346 | ) | |||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | - | - | - | - | 9 | - | (402 | ) | - | (393 | ) | ||||||||||||||||||||||||||||
Redemption other equity instruments | - | - | - | - | - | 32 | 32 | |||||||||||||||||||||||||||||||||
Coupons on perpetual securities | - | - | - | - | - | (36 | ) | - | - | - | (36 | ) | ||||||||||||||||||||||||||||
Incentive plans | - | - | - | - | - | (5 | ) | - | - | - | (5 | ) | ||||||||||||||||||||||||||||
On December 31, 2022 | 319 | 6,853 | (4,551 | ) | 736 | 2,821 | 5,439 | (1,565 | ) | (668 | ) | (569 | ) | 8,815 |
1 | Opening balance as per January 1, 2022, has been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 to the financial statements includes further details on the changes in accounting policies. |
Share capital | | Paid- in surplus | | Revaluation account | | Legal reserves FCTR | | Legal reserves group compa- nies | | Retained earnings | | Remeasure- ment of defined benefit plans of group companies | | Treasury shares | | Net result | | Total | ||||||||||||||||||||||
At January 1, 2021 | 320 | 7,160 | 7,491 | (601 | ) | 1,710 | 8,798 | (2,534 | ) | (181 | ) | (146 | ) | 22,018 | ||||||||||||||||||||||||||
Net result 2020 retained | - | - | - | - | - | (146 | ) | - | - | 146 | - | |||||||||||||||||||||||||||||
Net result 2021 | - | - | - | - | - | - | - | - | 1,980 | 1,980 | ||||||||||||||||||||||||||||||
Total net result | - | - | - | - | - | (146 | ) | - | - | 2,125 | 1,980 | |||||||||||||||||||||||||||||
Foreign currency translation differences and movement in foreign investment hedging reserves | - | - | 859 | - | - | (65 | ) | - | - | 795 | ||||||||||||||||||||||||||||||
Changes in revaluation in subsidiaries | - | - | (1,035 | ) | - | - | - | - | - | - | (1,035 | ) | ||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | - | (3 | ) | - | - | (3 | ) | ||||||||||||||||||||||||||||||||
Remeasurement of defined benefit plans of group companies | - | - | - | - | - | - | 399 | - | - | 399 | ||||||||||||||||||||||||||||||
Changes and transfer to legal reserve | - | - | - | - | 606 | (587 | ) | - | - | - | 19 | |||||||||||||||||||||||||||||
Other | - | - | - | - | - | 14 | - | - | - | 14 | ||||||||||||||||||||||||||||||
Other comprehensive income / (loss) | - | - | (1,038 | ) | 859 | 606 | (573 | ) | 335 | - | - | 189 | ||||||||||||||||||||||||||||
Shares issued | 1 | - | - | - | - | - | - | - | - | 1 | ||||||||||||||||||||||||||||||
Shares withdrawn | (1 | ) | - | - | - | - | - | - | - | - | (1 | ) | ||||||||||||||||||||||||||||
Dividends paid on common shares | - | (127 | ) | - | - | - | (120 | ) | - | - | - | (247 | ) | |||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | - | - | - | - | 4 | - | (92 | ) | - | (88 | ) | ||||||||||||||||||||||||||||
Coupons on perpetual securities | - | - | - | - | - | (39 | ) | - | - | - | (39 | ) | ||||||||||||||||||||||||||||
At December 31, 2021 | 321 | 7,033 | 6,453 | 258 | 2,316 | 7,924 | (2,199 | ) | (273 | ) | 1,980 | 23,813 |
Annual Report on Form 20-F 2023 | 373 |
![]() | ||||
Share capital | | Paid- in surplus | | | Revalua- tion account | | | Legal reserves FCTR | | | Legal reserves group companies | | Retained earnings | | | Remeasurement of defined benefit plans of group companies | | Treasury shares | | Net result | | Total | ||||||||||||||||||
At January 1, 2020 | 323 | 7,213 | 6,120 | 426 | 1,703 | 7,499 | (2,397 | ) | (281 | ) | 1,235 | 21,842 | ||||||||||||||||||||||||||||
Net result 2019 retained | - | - | - | - | - | 1,235 | - | - | (1,235 | ) | - | |||||||||||||||||||||||||||||
Net result 2020 | - | - | - | - | - | - | - | - | (146 | ) | (146 | ) | ||||||||||||||||||||||||||||
Total net result | - | - | - | - | - | 1,235 | - | - | (1,382 | ) | (146 | ) | ||||||||||||||||||||||||||||
Foreign currency translation differences and movement in foreign investment hedging reserves | - | - | (1,027 | ) | - | - | 83 | - | - | (945 | ) | |||||||||||||||||||||||||||||
Changes in revaluation in subsidiaries | - | - | 1,589 | - | - | - | - | - | - | 1,589 | ||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use | - | - | 18 | - | - | 18 | ||||||||||||||||||||||||||||||||||
Remeasurement of defined benefit plans of group companies | - | - | - | - | - | - | (220 | ) | - | - | (220 | ) | ||||||||||||||||||||||||||||
Changes and transfer to legal reserve | - | - | (235 | ) | - | 6 | 245 | - | - | - | 17 | |||||||||||||||||||||||||||||
Other | - | - | - | - | - | 2 | - | - | - | 2 | ||||||||||||||||||||||||||||||
Other comprehensive income / (loss) | - | - | 1,371 | (1,027 | ) | 6 | 247 | (137 | ) | - | - | 460 | ||||||||||||||||||||||||||||
Shares withdrawn | (3 | ) | - | - | - | - | (42 | ) | - | 45 | - | - | ||||||||||||||||||||||||||||
Dividends paid on common shares | - | (54 | ) | - | - | - | (64 | ) | - | - | - | (118 | ) | |||||||||||||||||||||||||||
Dividend withholding tax reduction | - | - | - | - | - | 1 | - | - | - | 1 | ||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares | - | - | - | - | - | (52 | ) | - | 55 | - | 3 | |||||||||||||||||||||||||||||
Coupons on perpetual securities | - | - | - | - | - | (38 | ) | - | - | - | (38 | ) | ||||||||||||||||||||||||||||
Incentive plans | - | - | - | - | - | 10 | - | - | - | 10 | ||||||||||||||||||||||||||||||
At December 31, 2020 | 320 | 7,160 | 7,491 | (601 | ) | 1,710 | 8,798 | (2,534 | ) | (181 | ) | (146 | ) | 22,018 |
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2021 | 2020 | |||||||||||||||
Number of shares (thousands) | | Amount | Number of shares (thousands) | | Amount | |||||||||||
At January 1 | 52,686 | 171 | 65,540 | 269 | ||||||||||||
Transactions in 2021: | ||||||||||||||||
Sale: transactions, average price 3.90 | (4,139 | ) | (16 | ) | ||||||||||||
Shares witdrawn: 1 transaction, average price EUR 3.89 | (2,466 | ) | (10 | ) | ||||||||||||
Sale: 1 transaction, average price 3.89 | (15,274 | ) | (59 | ) | ||||||||||||
Purchase: 1 transaction average price 3.70 | 35,933 | 133 | ||||||||||||||
Sale: 1 transaction, average price 3.02 | (17,314 | ) | (52 | ) | ||||||||||||
Purchase: 1 transaction average price 4.46 | 21,532 | 96 | ||||||||||||||
Transactions in 2020: | ||||||||||||||||
Sale: transactions, average price EUR 4.52 | (4,445 | ) | (20 | ) | ||||||||||||
Shares witdrawn: 1 transaction, average price EUR 4.52 | (9,491 | ) | (43 | ) | ||||||||||||
Sale: 1 transaction, average price EUR 4.13 | (22,947 | ) | (95 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 2.46 | 24,029 | 59 | ||||||||||||||
At December 31 | 70,958 | 262 | 52,686 | 171 |
2023 | 2022 | |||||||||||||||
Number of shares (thousands) | Amount | Number of shares (thousands) | Amount | |||||||||||||
On January 1 | 145,821 | 662 | 70,958 | 262 | ||||||||||||
Transactions in 2023: | ||||||||||||||||
Purchase: 1 transaction, average price EUR 5.00 | 8,516 | 43 | ||||||||||||||
Sale: 2 transactions, average price EUR 4.46 | (4,924 | ) | (22 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 4.27 | 46,798 | 200 | ||||||||||||||
Sale: 1 transaction, average price EUR 4.46 | (69 | ) | (0 | ) | ||||||||||||
Share withdrawn: 1 transaction, average price EUR 4.59 | (79,703 | ) | (366 | ) | ||||||||||||
Purchase: 2 transactions, average price EUR 4.77 | 170,881 | 815 | ||||||||||||||
Share Withdrawn: 1 transaction, average price EUR 4.59 | (215,000 | ) | (986 | ) | ||||||||||||
Transactions in 2022: | ||||||||||||||||
Purchase: 1 transaction, average price EUR 4.92 | 10,158 | 50 | ||||||||||||||
Sale: 4 transactions, average price EUR 2.46 | (4,708 | ) | (12 | ) | ||||||||||||
Sale: 1 transaction, average price EUR 3.12 | (18,676 | ) | (58 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 4.38 | 24,364 | 107 | ||||||||||||||
Share withdrawn: 1 transaction, average price EUR 3.70 | (10,665 | ) | (39 | ) | ||||||||||||
Sale: 1 transaction, average price EUR 3.91 | (21,365 | ) | (84 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 4.49 | 29,833 | 134 | ||||||||||||||
Purchase: 3 transactions, average price EUR 4.58 | 65,921 | 302 | ||||||||||||||
On December 31 | 72,320 | 345 | 145,821 | 662 |
2021 | 2020 | |||||||||||||||
Number of shares (thousands) | | Amount | Number of shares (thousands) | | Amount | |||||||||||
At January 1 | 12,884 | 1 | 25,310 | 3 | ||||||||||||
Transactions in 2021: | ||||||||||||||||
Sale: 1 transaction, average price EUR 0.10 | (1,983 | ) | - | |||||||||||||
Shares withdrawn: 1 transaction, average price EUR 0.10 | (2,956 | ) | - | |||||||||||||
Purchase: 1 transaction, average price EUR 0.10 | 22,643 | 2 | ||||||||||||||
Transactions in 2020: | ||||||||||||||||
Sale: 1 transaction, average price EUR 0.13 | (2,154 | ) | - | |||||||||||||
Shares withdrawn: 1 transaction, average price EUR 0.13 | (13,227 | ) | (2 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 0.08 | 2,956 | - | ||||||||||||||
At December 31 | 30,589 | 3 | 12,884 | 1 |
2021 | 2020 | |||||||||||||||
Number of shares (thousands) | | Total amount | Number of shares (thousands) | | Total amount | |||||||||||
Common shares | ||||||||||||||||
Held by Aegon N.V. | 70,958 | 262 | 52,686 | 171 | ||||||||||||
Held by subsidiaries | 822 | 8 | 1,062 | 9 | ||||||||||||
Common shares B | ||||||||||||||||
Held by Aegon N.V. | 30,589 | 3 | 12,884 | 1 | ||||||||||||
At December 31 | 102,369 | 273 | 66,632 | 181 |
2023 | 2022 | |||||||||||||||
Number of shares (thousands) | Amount | Number of shares (thousands) | Amount | |||||||||||||
On January 1 | 51,763 | 6 | 30,589 | 3 | ||||||||||||
Transactions in 2023: | ||||||||||||||||
Share withdrawn: 1 transaction, average price EUR 0.11 | (43,817 | ) | (5 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 0.13 | 112,619 | 15 | ||||||||||||||
Share withdrawn: 1 transaction, average price EUR 0.13 | (112,619 | ) | (15 | ) | ||||||||||||
Transactions in 2022: | ||||||||||||||||
Share withdrawn: 1 transaction, average price EUR 0.10 | (22,643 | ) | (2 | ) | ||||||||||||
Purchase: 1 transaction, average price EUR 0.12 | 43,817 | 5 | ||||||||||||||
On December 31 | 7,945 | 1 | 51,763 | 6 |
Notes to the financial statements of Aegon Note 1 | ||||
Perpetual contingent convertible securities | Junior perpetual capital securities | Perpetual cumulative subordinated bonds | Share options and incentive plans 1) | Total | ||||||||||||||||||||||||||||||||||||
Perpetual contingent convertible securities | Junior perpetual capital securities | Perpetual cumulative subordinated bonds | Long Term Incentive Plans 1) | Total | ||||||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2023 | 500 | 923 | 454 | 66 | 1,943 | |||||||||||||||||||||||||||||||||||
At January 1, 2021 | 500 | 1,564 | 454 | 50 | 2,569 | |||||||||||||||||||||||||||||||||||
Shares granted / Share options cost incurred | ||||||||||||||||||||||||||||||||||||||||
Shares granted / Share options cost incurred | ||||||||||||||||||||||||||||||||||||||||
Shares granted / Share options cost incurred | ||||||||||||||||||||||||||||||||||||||||
Shares granted / Share options cost incurred | - | - | - | 33 | 33 | |||||||||||||||||||||||||||||||||||
Shares vested / Share options forfeited | ||||||||||||||||||||||||||||||||||||||||
Shares vested / Share options forfeited | ||||||||||||||||||||||||||||||||||||||||
Shares vested / Share options forfeited | ||||||||||||||||||||||||||||||||||||||||
Shares vested / Share options forfeited | - | - | - | (25 | ) | (25 | ) | |||||||||||||||||||||||||||||||||
On December 31, 2023 | 500 | 923 | 454 | 74 | 1,951 | |||||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2022 | ||||||||||||||||||||||||||||||||||||||||
On January 1, 2022 | 500 | 1,352 | 454 | 57 | 2,363 | |||||||||||||||||||||||||||||||||||
Shares granted | ||||||||||||||||||||||||||||||||||||||||
Shares granted | ||||||||||||||||||||||||||||||||||||||||
Shares granted | ||||||||||||||||||||||||||||||||||||||||
Shares granted | - | - | - | 27 | 27 | - | - | - | 32 | 32 | ||||||||||||||||||||||||||||||
Shares vested | - | - | - | (21 | ) | (21 | ) | |||||||||||||||||||||||||||||||||
Shares vested | ||||||||||||||||||||||||||||||||||||||||
Shares vested | ||||||||||||||||||||||||||||||||||||||||
Shares vested | - | - | - | (23 | ) | (23 | ) | |||||||||||||||||||||||||||||||||
Securities redeemed | - | (212 | ) | - | - | (212 | ) | |||||||||||||||||||||||||||||||||
Securities redeemed | ||||||||||||||||||||||||||||||||||||||||
Securities redeemed | ||||||||||||||||||||||||||||||||||||||||
Securities redeemed | - | (429 | ) | - | - | (429 | ) | |||||||||||||||||||||||||||||||||
At December 31, 2021 | 500 | 1,352 | 454 | 57 | 2,363 | |||||||||||||||||||||||||||||||||||
At January 1, 2020 | 500 | 1,564 | 454 | 53 | 2,571 | |||||||||||||||||||||||||||||||||||
Shares granted | - | - | - | 22 | 22 | |||||||||||||||||||||||||||||||||||
Shares vested | - | - | - | (25 | ) | (25 | ) | |||||||||||||||||||||||||||||||||
At December 31, 2020 | 500 | 1,564 | 454 | 50 | 2,569 | |||||||||||||||||||||||||||||||||||
On December 31, 2022 | 500 | 923 | 454 | 66 | 1,943 |
1 |
Perpetual contingent convertible securities | Coupon rate | Coupon date | Year of next call | 2021 | 2020 | |||||||||||||||
EUR 500 million | 5.625% 1) | Semi-annually, April 15 | 2029 | 500 | 500 | |||||||||||||||
At December 31 | 500 | 500 |
Perpetual contingent convertible securities | Coupon rate | Coupon date | Year of next call | 2023 | 2022 | |||||||||||||||
EUR 500 million | 5.625% 1) | Semi-annually, April 15 | 2029 | 500 | 500 | |||||||||||||||
On December 31 | 500 | 500 |
1 | The coupon is fixed at 5.625% until the first call date and reset thereafter to a 5 year mid swap plus a margin of 5.207%. |
Junior perpetual capital securities | Coupon rate | Coupon date | Year of next call | 2021 | 2020 | |||||||||||||||
USD 250 million | floating LIBOR rate 1) | Quarterly, December 15 | Called in 2021 | 0 | 212 | |||||||||||||||
USD 500 million | floating CMS rate 2) | Quarterly, July 15 | 2022 | 402 | 402 | |||||||||||||||
EUR 950 million | floating DSL rate 3) | Quarterly, July 15 | 2022 | 950 | 950 | |||||||||||||||
At December 31 | 1,352 | 1,564 |
Junior perpetual capital securities | Coupon rate | Coupon date | Year of next call | 2023 | 2022 | |||||||||||||||
USD 500 million | floating CMS rate 1) | Quarterly, July 15 | 2024 | 402 | 402 | |||||||||||||||
EUR 950 million 3) | floating DSL rate 2) | Quarterly, July 15 | 2024 | 521 | 521 | |||||||||||||||
On December 31 | 923 | 923 |
1 |
The coupon of the USD 500 million junior perpetual capital securities is reset each quarter based on the 29 basis points and (iii) a credit spread often basis, with a maximum of 8.5%. |
The coupon of the EUR 950 million junior perpetual capital securities is reset each quarter based on the then prevailing ten-year Dutch government bond yield plus a spread often basis points, with a maximum of 8%. |
3 | On April 5, 2022 Aegon completed a tender offer buying back EUR 429 million of perpetual capital securities, part of the EUR 950 million notes issued in 2004. |
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Perpetual cumulative subordinated bonds | Coupon rate | Coupon date | Year of next call | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Perpetual cumulative subordinated bonds | ||||||||||||||||||||||||||||||||||||||
Perpetual cumulative subordinated bonds | ||||||||||||||||||||||||||||||||||||||
Perpetual cumulative subordinated bonds | Coupon rate | Coupon date | Year of next call | 2023 | 2022 | |||||||||||||||||||||||||||||||||
EUR 114 million | ||||||||||||||||||||||||||||||||||||||
EUR 114 million | ||||||||||||||||||||||||||||||||||||||
EUR 114 million | ||||||||||||||||||||||||||||||||||||||
EUR 114 million | 1.506% 1), 4) | Annually, June 8 | 2025 | 114 | 114 | 1.506% 1), 4) | Annually, June 8 | 2025 | 114 | 114 | ||||||||||||||||||||||||||||
EUR 136 million | 1.425% 2), 4) | Annually, October 14 | 2028 | 136 | 136 | |||||||||||||||||||||||||||||||||
EUR 136 million | ||||||||||||||||||||||||||||||||||||||
EUR 136 million | ||||||||||||||||||||||||||||||||||||||
EUR 136 million | 1.425% 2), 4) | Annually, October 14 | 2028 | 136 | 136 | |||||||||||||||||||||||||||||||||
EUR 203 million | 0.496% 3), 4) | Annually, March 4 | 2031 | 203 | 203 | |||||||||||||||||||||||||||||||||
EUR 203 million | ||||||||||||||||||||||||||||||||||||||
EUR 203 million | ||||||||||||||||||||||||||||||||||||||
EUR 203 million | 0.496% 3), 4) | Annually, March 4 | 2031 | 203 | 203 | |||||||||||||||||||||||||||||||||
At December 31 | 454 | 454 | ||||||||||||||||||||||||||||||||||||
On December 31 | 454 | 454 |
1 | The coupon of the EUR 114 million bonds was originally set at 8% until June 8, 2005. Subsequently, the coupon has been reset at 4.156% until June 8, 2015 and 1.506% until June 8, 2025. |
2 | The coupon of the EUR 136 million bonds was originally set at 7.25% until October 14, 2008. Subsequently, the coupon has been reset at 5.185% until October 14, 2018 and 1.425% until 2028.October 14, |
3 | The coupon of the EUR 203 million bonds was originally set at 7.125% until March 4, 2011. Subsequently, the coupon has been reset at 4.26% until March 4, 2021 and 0.496% until March 4, 2031. |
4 | If the bonds are not called on the respective call dates and after consecutive period of ten years, ten-year Dutch government securities plus a spread of 85 basis points. |
Annual Report on Form 20-F 2023 | 375 |
![]() | About Aegon Governance and risk management Financial information | |||
Coupon rate | Coupon date | Issue /Maturity | Year of next call | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||
Fixed to floating subordinated notes | Coupon rate | Coupon date | Issue /Maturity | Year of next call | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||
EUR 700 million | 4% 1) | Annually, April 25 | 2014/44 | 2024 | 698 | 698 | ||||||||||||||||||||||||||||||||||||||||||
EUR 700 million | ||||||||||||||||||||||||||||||||||||||||||||||||
EUR 700 million | ||||||||||||||||||||||||||||||||||||||||||||||||
EUR 700 million | 4% 1) | Annually, April 25 | 2014/ 44 | 2024 | 700 | 699 | ||||||||||||||||||||||||||||||||||||||||||
USD 800 million | 5.5% 2) | Semi-annually, April 11 | 2018/48 | 2028 | 697 | 648 | ||||||||||||||||||||||||||||||||||||||||||
USD 800 million | ||||||||||||||||||||||||||||||||||||||||||||||||
USD 800 million | ||||||||||||||||||||||||||||||||||||||||||||||||
USD 800 million | 5.5% 2) | Semi-annually, April 11 | 2018/ 48 | 2028 | 718 | 743 | ||||||||||||||||||||||||||||||||||||||||||
At December 31 | 1,396 | 1,345 | ||||||||||||||||||||||||||||||||||||||||||||||
On December 31 | 1,418 | 1,442 | ||||||||||||||||||||||||||||||||||||||||||||||
Fair value of subordinated borrowings | 1,567 | 1,517 | ||||||||||||||||||||||||||||||||||||||||||||||
Fair value of subordinated borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of subordinated borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of subordinated borrowings | 1,392 | 1,372 |
1 | The coupon is fixed at 4% until the first call date and floating 335 bps. |
2 | The coupon is fixed at 5.5% until the first call date in 2028 and floating thereafter with a 6 month USD LIBOR (subject to US LIBOR Act) plus a margin of 3.539%. |
2021 | 2020 | 2023 | 2022 | |||||||||||||
Remaining terms less than 1 year | 0- | 0- | ||||||||||||||
Remaining terms less than 1 year | ||||||||||||||||
Remaining terms less than 1 year | ||||||||||||||||
Remaining terms less than 1 year | - | 499 | ||||||||||||||
Remaining terms 1 - 5 years | ||||||||||||||||
Remaining terms 1 - 5 years | ||||||||||||||||
Remaining terms 1 - 5 years | ||||||||||||||||
Remaining terms 1 - 5 years | 499 | 498 | - | - | ||||||||||||
Remaining terms 5 - 10 years | 296 | 0- | ||||||||||||||
Remaining terms 5 - 10 years | ||||||||||||||||
Remaining terms 5 - 10 years | ||||||||||||||||
Remaining terms 5 - 10 years | 287 | 281 | ||||||||||||||
Remaining terms over 10 years | 472 | 720 | ||||||||||||||
Remaining terms over 10 years | ||||||||||||||||
Remaining terms over 10 years | ||||||||||||||||
Remaining terms over 10 years | 457 | 446 | ||||||||||||||
At December 31 | 1,266 | 1,218 | ||||||||||||||
On December 31 | 745 | 1,226 | ||||||||||||||
Fair value of long-term borrowings | 1,735 | 1,766 | ||||||||||||||
Fair value of long-term borrowings | ||||||||||||||||
Fair value of long-term borrowings | ||||||||||||||||
Fair value of long-term borrowings | 847 | 1,289 |
![]() |
Due and punctual payment of payables co-applicant with its captive insurance companies that are subsidiaries of Transamerica Corporation and Commonwealth General Corporation. At December 31, |
Due and punctual payment of payables by the consolidated group companies Transamerica Corporation, Aegon Funding Company LLC and Commonwealth General Corporation with respect to fixed subordinated notes, bonds, capital trust pass-through securities and notes issued under commercial paper programs |
Due and punctual payment of any amounts owed to third parties by the consolidated group company Aegon Derivatives N.V. in connection with derivative transactions. Aegon Derivatives N.V. enters into derivative transactions with counterparties with which ISDA master netting agreements, including collateral support annex agreements, have been |
Notes to the financial statements of Aegon Ltd. Note 20 | ||||
Total remuneration of the group | Of which PricewaterhouseCoopers Accountants N.V. (NL) | |||||||||||||||||||||||
Total remuneration of the group | Of which PricewaterhouseCoopers Accountants N.V. (NL) | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Audit fees | 31 | 34 | 9 | 9 | ||||||||||||||||||||
Audit fees | ||||||||||||||||||||||||
Audit fees | ||||||||||||||||||||||||
Audit fees | 33 | 35 | 4 | 10 | ||||||||||||||||||||
Audit-related service fees | 3 | 5 | 1 | 2 | ||||||||||||||||||||
Audit-related service fees | ||||||||||||||||||||||||
Audit-related service fees | ||||||||||||||||||||||||
Audit-related service fees | 11 | 10 | - | 1 | ||||||||||||||||||||
Tax | ||||||||||||||||||||||||
Tax | ||||||||||||||||||||||||
Tax | ||||||||||||||||||||||||
Tax | - | 1 | - | - | ||||||||||||||||||||
Other services | ||||||||||||||||||||||||
Other services | ||||||||||||||||||||||||
Other services | ||||||||||||||||||||||||
Other services | - | - | - | - | ||||||||||||||||||||
Total | 35 | 40 | 10 | 11 | 44 | 45 | 4 | 12 |
Annual Report on Form 20-F 2023 | 377 |
![]() | ||||
2021 | 2020 | 2023 | 2022 1) | |||||||||||||
Final dividend on common shares | 184 | 124 | ||||||||||||||
Earnings to be retained | 1,795 | - | ||||||||||||||
Final dividend on common shares | ||||||||||||||||
Final dividend on common shares | ||||||||||||||||
Final dividend on common shares | 280 | 237 | ||||||||||||||
To be deducted from retained earnings | - | (269 | ) | |||||||||||||
To be deducted from retained earnings | ||||||||||||||||
To be deducted from retained earnings | ||||||||||||||||
To be deducted from retained earnings | (459 | ) | (806 | ) | ||||||||||||
Net result attributable to owners of Aegon N.V. | 1,980 | (146 | ) | |||||||||||||
Net result attributable to owners of Aegon Ltd. | (179 | ) | (569 | ) |
1 | Comparatives have been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 to the financial statements includes further details on the changes in accounting policies. |
Lard Friese William L. Connelly Mark A. Ellman Karen Fawcett Jack McGarry Caroline Ramsay Thomas Wellauer Corien M. Wortmann-Kool Dona D. Young | ||||||
Profit appropriation | ||||
1. | The |
2. |
3. | The |
4. | The |
5. |
6. | The |
7. |
8. | Any dividend or distribution out of contributed surplus unclaimed for a period of five (5) years from the date of declaration of such dividend or distribution shall be forfeited and shall revert to Aegon. |
Annual Report on Form 20-F 2023 | 379 |
![]() | Financial information | |||
Major shareholders | ||||
![]() |
Annual Report on Form 20-F 2023 | 381 |
![]() | About Aegon Governance and risk management Financial information | |||
![]() |
Major shareholders | ||||
Annual Report on Form 20-F 2023 | 383 |
![]() | Financial information | |||
On December 31, 2023 | Cost | 1) | Fair value | Book value | ||||||||
Shares: | ||||||||||||
Fair value through profit or loss | 279 | 10 | 10 | |||||||||
Fair value through other comprehensive income | 6 | 291 | 291 | |||||||||
Bonds: | ||||||||||||
Fair value through other comprehensive income: | ||||||||||||
US government | 7,562 | 6,562 | 6,562 | |||||||||
Dutch government | 2 | 2 | 2 | |||||||||
Other government | 1,007 | 906 | 906 | |||||||||
Mortgage backed | 3,085 | 2,840 | 2,840 | |||||||||
Asset backed | 3,360 | 3,102 | 3,102 | |||||||||
Corporate | 36,617 | 33,779 | 33,779 | |||||||||
Money market investments | 3,135 | 3,135 | 3,135 | |||||||||
Other | 35 | 29 | 29 | |||||||||
Subtotal - Fair value through other comprehensive income | 54,803 | 50,354 | 50,354 | |||||||||
Bonds: | ||||||||||||
Fair value through profit or loss | 1,648 | 2,396 | 2,396 | |||||||||
Other investments at fair value through profit or loss | 8,287 | 9,226 | 9,226 | |||||||||
Mortgages | 10,157 | 9,025 | 10,157 | |||||||||
Private loans | (0 | ) | (0 | ) | (0 | ) | ||||||
Deposits with financial institutions | 18 | 18 | 18 | |||||||||
Other | 1 | 1 | 1 | |||||||||
Subtotal | 10,175 | 9,044 | 10,175 | |||||||||
Real estate: | ||||||||||||
Investments in real estate | 55 | 55 | 55 | |||||||||
Total | 75,254 | 71,376 | 72,508 |
Amounts in EUR million | Cost 1) | Fair value | Book value | |||||||||
Shares: | ||||||||||||
Available-for-sale | 288 | 350 | 350 | |||||||||
Fair value through profit or loss | 1,524 | 1,665 | 1,665 | |||||||||
Bonds: | ||||||||||||
Available-for-sale held-to-maturity: | ||||||||||||
US government | 8,942 | 11,317 | 11,317 | |||||||||
Dutch government | 3,456 | 4,694 | 4,694 | |||||||||
Other government | 9,060 | 11,769 | 11,769 | |||||||||
Mortgage backed | 5,265 | 5,581 | 5,581 | |||||||||
Asset backed | 4,088 | 4,189 | 4,189 | |||||||||
Corporate | 50,953 | 56,348 | 56,348 | |||||||||
Money market investments | 4,790 | 4,790 | 4,790 | |||||||||
Other | 876 | 844 | 844 | |||||||||
Subtotal | 87,431 | 99,533 | 99,533 | |||||||||
Bonds: | ||||||||||||
Fair value through profit or loss | 3,111 | 3,296 | 3,296 | |||||||||
Other investments at fair value through profit or loss | 3,133 | 3,521 | 3,521 | |||||||||
Mortgages | 39,991 | 44,366 | 39,991 | |||||||||
Private loans | 4,883 | 5,491 | 4,883 | |||||||||
Deposits with financial institutions | 52 | 52 | 52 | |||||||||
Policy loans | 1,893 | 1,893 | 1,893 | |||||||||
Other | 3 | 3 | 3 | |||||||||
Subtotal | 46,822 | 51,806 | 46,822 | |||||||||
Real estate: | ||||||||||||
Investments in real estate | 0 | 2,643 | 2,643 | |||||||||
Total | 142,310 | 162,814 | 157,831 |
Schedule II | ||||
Before profit appropriation, amounts in EUR million | 2023 | 2022 1) | January 1, 2022 1) | |||||||||
Non-current assets | ||||||||||||
Financial fixed assets | ||||||||||||
Shares in group companies | 8,536 | 10,338 | 13.247 | |||||||||
Loans to group companies | 780 | 1,435 | 1,829 | |||||||||
Other non-current assets | - | 109 | 138 | |||||||||
9,316 | 11,882 | 15,214 | ||||||||||
Current assets | ||||||||||||
Receivables | ||||||||||||
Receivables from group companies | 138 | 31 | 35 | |||||||||
Other receivables | 77 | 236 | 181 | |||||||||
Other current assets | 48 | 123 | 90 | |||||||||
Accrued interest and rent | 18 | 9 | 6 | |||||||||
281 | 398 | 312 | ||||||||||
Cash and cash equivalents | ||||||||||||
Cash and cash equivalents | 2,304 | 1,619 | 1,204 | |||||||||
Total assets | 11,900 | 13,899 | 16,729 | |||||||||
Shareholders’ equity | ||||||||||||
Share capital | 265 | 319 | 321 | |||||||||
Paid-in surplus | 6,853 | 6,853 | 7,033 | |||||||||
Revaluation account | (3,760 | ) | (4,551 | ) | (2,568 | ) | ||||||
Legal reserves – foreign currency translation reserve | 474 | 736 | 258 | |||||||||
Legal reserves in respect of group companies | 1,134 | 2,821 | 2,316 | |||||||||
Retained earnings, including treasury shares | 3,693 | 4,771 | 3,877 | |||||||||
Remeasurement of defined benefit plans of group companies | (1,006 | ) | (1,565 | ) | (2,199 | ) | ||||||
Net result | (179 | ) | (569 | ) | 1,980 | |||||||
7,475 | 8,815 | 11,018 | ||||||||||
Other equity instruments | 1,951 | 1,943 | 2,363 | |||||||||
Total equity | 9,426 | 10,758 | 13,381 | |||||||||
Provisions | ||||||||||||
D eferred tax l iability | 3 | - | - | |||||||||
3 | - | - | ||||||||||
Non-current liabilities | ||||||||||||
Subordinated borrowings | 1,418 | 1,442 | 1,396 | |||||||||
Long-term borrowings | 745 | 1,226 | 1,266 | |||||||||
2,163 | 2,669 | 2,662 | ||||||||||
Current liabilities | ||||||||||||
Loans from group companies | 4 | 13 | 7 | |||||||||
Payables to group companies | 73 | 147 | 422 | |||||||||
Other current liabilities | 202 | 282 | 227 | |||||||||
Accruals and deferred income | 30 | 31 | 31 | |||||||||
309 | 472 | 686 | ||||||||||
Total liabilities | 2,475 | 3,141 | 3,349 | |||||||||
Total equity and liabilities | 11,900 | 13,899 | 16,729 |
1 |
Annual Report on Form 20-F 2023 | 385 |
![]() | Financial information | |||
Before profit appropriation, amounts in EUR million | 2021 | 2020 | ||||||
Non-current assets | ||||||||
Financial fixed assets | ||||||||
Shares in group companies | 26,042 | 24,846 | ||||||
Loans to group companies | 1,829 | 1,392 | ||||||
Other non-current assets | 138 | 148 | ||||||
28,009 | 26,386 | |||||||
Current assets | ||||||||
Receivables | ||||||||
Receivables from group companies | 35 | 56 | ||||||
Other receivables | 181 | 100 | ||||||
Other current assets | 90 | 198 | ||||||
Accrued interest and rent | 6 | 9 | ||||||
312 | 363 | |||||||
Cash and cash equivalents | ||||||||
Cash and cash equivalents | 1,204 | 887 | ||||||
Total assets | 29,524 | 27,636 | ||||||
Shareholders’ equity | ||||||||
Share capital | 321 | 320 | ||||||
Paid-in surplus | 7,033 | 7,160 | ||||||
Revaluation account | 6,453 | 7,491 | ||||||
Legal reserves – foreign currency translation reserve | 258 | (601 | ) | |||||
Legal reserves in respect of group companies | 2,316 | 1,710 | ||||||
Retained earnings, including treasury shares | 7,652 | 8,617 | ||||||
Remeasurement of defined benefit plans of group companies | (2,199 | ) | (2,534 | ) | ||||
Net result | 1,980 | (146 | ) | |||||
23,813 | 22,018 | |||||||
Other equity instruments | 2,363 | 2,569 | ||||||
Total equity | 26,176 | 24,586 | ||||||
Non-current liabilities | ||||||||
Subordinated borrowings | 1,396 | 1,345 | ||||||
Long-term borrowings | 1,266 | 1,218 | ||||||
2,662 | 2,563 | |||||||
Current liabilities | ||||||||
Loans from group companies | 7 | 6 | ||||||
Payables to group companies | 422 | 44 | ||||||
Other current liabilities | 227 | 406 | ||||||
Accruals and deferred income | 31 | 30 | ||||||
686 | 486 | |||||||
Total liabilities | 3,349 | 3,049 | ||||||
Total equity and liabilities | 29,524 | 27,636 |
![]() |
Amounts in EUR million | 2021 | 2020 | 2019 | |||||||||||||||||
Amounts in EUR million | ||||||||||||||||||||
Amounts in EUR million | ||||||||||||||||||||
Amounts in EUR million | 2023 | 2022 1) | ||||||||||||||||||
Net result group companies | 2,119 | - | 1,376 | |||||||||||||||||
Net result group companies | ||||||||||||||||||||
Net result group companies | ||||||||||||||||||||
Net result group companies | (65 | ) | (411 | ) | ||||||||||||||||
Other income / (loss) | (139 | ) | (146 | ) | (141 | ) | ||||||||||||||
Other income / (loss) | ||||||||||||||||||||
Other income / (loss) | ||||||||||||||||||||
Other income / (loss) | (114 | ) | (158 | ) | ||||||||||||||||
Net result | 1,980 | (146 | ) | 1,235 | (179 | ) | (569 | ) |
1 | Comparatives have been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 to the financial statements includes further details on the changes in accounting policies. |
Amounts in EUR million | 2021 | 2020 | 2019 | |||||||||||||||||
Amounts in EUR millions | ||||||||||||||||||||
Amounts in EUR millions | ||||||||||||||||||||
Amounts in EUR millions | ||||||||||||||||||||
Amounts in EUR millions | 2023 | 2022 1) | ||||||||||||||||||
Result before tax | 1,926 | (185 | ) | 1,196 | ||||||||||||||||
Result before tax | ||||||||||||||||||||
Result before tax | ||||||||||||||||||||
Result before tax | (133 | ) | (204 | ) | ||||||||||||||||
Adjustments | (1,691 | ) | (330 | ) | (1,526 | ) | ||||||||||||||
Adjustments | ||||||||||||||||||||
Adjustments | ||||||||||||||||||||
Adjustments | (264 | ) | (138 | ) | ||||||||||||||||
Net cash flows from operating activities | 235 | (515 | ) | (330 | ) | |||||||||||||||
Net cash flows from operating activities | ||||||||||||||||||||
Net cash flows from operating activities | ||||||||||||||||||||
Net cash flows from operating activities | (397 | ) | (342 | ) | ||||||||||||||||
Dividends and capital repayments of subsidiaries, associates and joint ventures | 500 | 606 | 647 | |||||||||||||||||
Other | (3 | ) | (1 | ) | (1 | ) | ||||||||||||||
Dividends and capital repayments of subsidiaries, associates and joint ventures | ||||||||||||||||||||
Dividends and capital repayments of subsidiaries, associates and joint ventures | ||||||||||||||||||||
Dividends and capital repayments of subsidiaries, associates and joint ventures | 2,567 | 1,530 | ||||||||||||||||||
Net cash flows from investing activities | 497 | 605 | 646 | |||||||||||||||||
Issuance of perpetuals | - | - | 496 | |||||||||||||||||
Issuance of treasury shares | - | - | 1 | |||||||||||||||||
Net cash flows from investing activities | ||||||||||||||||||||
Net cash flows from investing activities | ||||||||||||||||||||
Net cash flows from investing activities | 2,567 | 1,530 | ||||||||||||||||||
Purchase of treasury shares | (231 | ) | (59 | ) | (318 | ) | ||||||||||||||
Purchase of treasury shares | ||||||||||||||||||||
Purchase of treasury shares | ||||||||||||||||||||
Purchase of treasury shares | (1,072 | ) | (597 | ) | ||||||||||||||||
Issuance and repurchase of borrowings | 197 | (58 | ) | 1,074 | ||||||||||||||||
Issuance and repurchase of borrowings | ||||||||||||||||||||
Issuance and repurchase of borrowings | ||||||||||||||||||||
Issuance and repurchase of borrowings | 145 | 469 | ||||||||||||||||||
Repayment of perpetuals | (212 | ) | - | (1,343 | ) | |||||||||||||||
Repayment of perpetuals | ||||||||||||||||||||
Repayment of perpetuals | ||||||||||||||||||||
Repayment of perpetuals | - | (429 | ) | |||||||||||||||||
Dividends paid | (121 | ) | (63 | ) | (309 | ) | ||||||||||||||
Dividends paid | ||||||||||||||||||||
Dividends paid | ||||||||||||||||||||
Dividends paid | (494 | ) | (169 | ) | ||||||||||||||||
Coupons on perpetual securities | (52 | ) | (55 | ) | (112 | ) | ||||||||||||||
Coupons on perpetual securities | ||||||||||||||||||||
Coupons on perpetual securities | ||||||||||||||||||||
Coupons on perpetual securities | (65 | ) | (48 | ) | ||||||||||||||||
Net cash flows from financing activities | ||||||||||||||||||||
Net cash flows from financing activities | ||||||||||||||||||||
Net cash flows from financing activities | ||||||||||||||||||||
Net cash flows from financing activities | (417 | ) | (235 | ) | (512 | ) | (1,485 | ) | (773 | ) | ||||||||||
Net increase / (decrease) in cash and cash equivalents | 316 | (146 | ) | (196 | ) | 685 | 415 |
1 | Comparatives have been restated due to the initial application of IFRS 9 and IFRS 17. Note 2 to the financial statements includes further details on the changes in accounting policies. |
2021 | 2020 | |||||||||||||||
Amounts in EUR million | Subordinated borrowings | Long-term Borrowings | Subordinated borrowings | Long-term Borrowings | ||||||||||||
Remaining terms less than 1 year | 0 | 0 | 0 | 0 | ||||||||||||
Remaining terms 1 - 2 years | 0 | 499 | 0 | 0 | ||||||||||||
Remaining terms 2 - 3 years | 0 | 0 | 0 | 498 | ||||||||||||
Remaining terms 3 - 4 years | 0 | 0 | 0 | 0 | ||||||||||||
Remaining terms 4 - 5 years | 0 | 0 | 0 | 0 | ||||||||||||
Remaining terms longer than 5 years | 1,396 | 768 | 1,345 | 720 | ||||||||||||
At December 31 | 1,396 | 1,266 | 1,345 | 1,218 |
2023 | 2022 | |||||||||||||||
Amounts in EUR million | Subordinated borrowings | Long-term Borrowings | Subordinated borrowings | Long-term Borrowings | ||||||||||||
Remaining terms less than 1 year | - | - | - | 499 | ||||||||||||
Remaining terms 1 - 2 years | - | - | - | - | ||||||||||||
Remaining terms 2 - 3 years | - | - | - | - | ||||||||||||
Remaining terms 3 - 4 years | - | - | - | - | ||||||||||||
Remaining terms 4 - 5 years | - | - | - | - | ||||||||||||
Remaining terms longer than 5 years | 1,418 | 745 | 1,442 | 727 | ||||||||||||
At December 31 | 1,418 | 745 | 1,442 | 1,226 |
Schedule III | ||||
Column A | Column B | Column C | Column D | Column E | Column F | |||||||||||||||||||||||||||||||||||
Segment | Deferred policy acquisition costs | Future policy benefits | Unearned premiums | Other policy claims and benefits | Premium revenue | |||||||||||||||||||||||||||||||||||
Amounts in EUR million | ||||||||||||||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||||||
Segment Amounts in EUR million | Insurance liability - CSM | Insurance liability - BEL | Insurance liability - RA | Insurance liability - PAA contracts | Insurance revenue | |||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||||
Americas | 8,648 | 192,099 | 6,335 | 1,934 | 8,190 | |||||||||||||||||||||||||||||||||||
The Netherlands | 235 | 67,226 | 50 | 1,019 | 1,713 | |||||||||||||||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||||||||||||||||
Americas | 6,494 | 126,762 | 2,860 | - | 9,468 | |||||||||||||||||||||||||||||||||||
United Kingdom | 796 | 111,458 | - | - | 4,616 | |||||||||||||||||||||||||||||||||||
United Kingdom | ||||||||||||||||||||||||||||||||||||||||
United Kingdom | ||||||||||||||||||||||||||||||||||||||||
United Kingdom | 1,595 | 59,898 | 429 | - | 663 | |||||||||||||||||||||||||||||||||||
International | 391 | 9,735 | 163 | 110 | 924 | |||||||||||||||||||||||||||||||||||
International | ||||||||||||||||||||||||||||||||||||||||
International | ||||||||||||||||||||||||||||||||||||||||
International | 247 | 6,177 | 165 | 39 | 305 | |||||||||||||||||||||||||||||||||||
Asset Management | ||||||||||||||||||||||||||||||||||||||||
Asset Management | ||||||||||||||||||||||||||||||||||||||||
Asset Management | ||||||||||||||||||||||||||||||||||||||||
Asset Management | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Holding and other activities | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Holding and other activities | ||||||||||||||||||||||||||||||||||||||||
Holding and other activities | ||||||||||||||||||||||||||||||||||||||||
Holding and other activities | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Eliminations | - | (1,611 | ) | - | - | - | ||||||||||||||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||||||||||||||||||
Eliminations | (36 | ) | (5,515 | ) | (76 | ) | - | (51 | ) | |||||||||||||||||||||||||||||||
Total | 10,070 | 378,907 | 6,548 | 3,062 | 15,444 | 8,300 | 187,322 | 3,379 | 39 | 10,386 | ||||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||||
Americas | 7,181 | 174,167 | 5,897 | 1,858 | 8,326 | |||||||||||||||||||||||||||||||||||
The Netherlands | 136 | 70,915 | 50 | 1,026 | 1,994 | |||||||||||||||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||||||||||||||||
Americas | 7,038 | 127,245 | 2,912 | - | 10,174 | |||||||||||||||||||||||||||||||||||
United Kingdom | 789 | 95,788 | 20 | 5 | 4,858 | |||||||||||||||||||||||||||||||||||
United Kingdom | ||||||||||||||||||||||||||||||||||||||||
United Kingdom | ||||||||||||||||||||||||||||||||||||||||
United Kingdom | 1,657 | 56,453 | 566 | - | 701 | |||||||||||||||||||||||||||||||||||
International | 289 | 9,245 | 150 | 112 | 919 | |||||||||||||||||||||||||||||||||||
International | ||||||||||||||||||||||||||||||||||||||||
International | ||||||||||||||||||||||||||||||||||||||||
International | 421 | 6,586 | 124 | 439 | 408 | |||||||||||||||||||||||||||||||||||
Asset Management | ||||||||||||||||||||||||||||||||||||||||
Asset Management | ||||||||||||||||||||||||||||||||||||||||
Asset Management | ||||||||||||||||||||||||||||||||||||||||
Asset Management | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Holding and other activities | - | - | - | - | 1 | |||||||||||||||||||||||||||||||||||
Holding and other activities | ||||||||||||||||||||||||||||||||||||||||
Holding and other activities | ||||||||||||||||||||||||||||||||||||||||
Holding and other activities | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Eliminations | - | (1,488 | ) | - | - | - | ||||||||||||||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||||||||||||||||||
Eliminations | (180 | ) | (6,029 | ) | (57 | ) | - | (32 | ) | |||||||||||||||||||||||||||||||
Total | 8,395 | 348,627 | 6,117 | 3,001 | 16,099 | 8,937 | 184,255 | 3,545 | 439 | 11,251 | ||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||
Americas | 8,589 | 179,972 | 5,770 | 2,117 | 8,515 | |||||||||||||||||||||||||||||||||||
The Netherlands | 360 | 67,382 | 56 | 944 | 2,123 | |||||||||||||||||||||||||||||||||||
United Kingdom | 878 | 94,570 | 18 | 5 | 6,309 | |||||||||||||||||||||||||||||||||||
International | 536 | 10,023 | 156 | 122 | 1,188 | |||||||||||||||||||||||||||||||||||
Holding and other activities | - | 16 | 1 | - | 3 | |||||||||||||||||||||||||||||||||||
Eliminations | - | (1,655 | ) | - | - | - | ||||||||||||||||||||||||||||||||||
Total | 10,363 | 350,307 | 6,002 | 3,188 | 18,138 |
Amounts in EUR million | Investment income 1) | Insurance service expenses | Other operating expenses | |||||||||
2023 | ||||||||||||
Americas | 3,461 | 9,578 | 2,148 | |||||||||
United Kingdom | 2,362 | 406 | 353 | |||||||||
International | 86 | 275 | 93 | |||||||||
Asset Management | 2 | - | 440 | |||||||||
Holding and other activities | 90 | - | 85 | |||||||||
Eliminations | (6 | ) | (33 | ) | (158 | ) | ||||||
Total | 5,995 | 10,226 | 2,961 | |||||||||
2022 | ||||||||||||
Americas | 3,365 | 10,324 | 1,916 | |||||||||
United Kingdom | 1,940 | 443 | 287 | |||||||||
International | 187 | 350 | 103 | |||||||||
Asset Management | - | - | 437 | |||||||||
Holding and other activities | 2 | - | 155 | |||||||||
Eliminations | (5 | ) | (20 | ) | (187 | ) | ||||||
Total | 5,490 | 11,097 | 2,712 |
1 | Sum of Interest revenue on financial instruments calculated using the effective interest method, Interest revenue on financial instruments measured at FVPL and Other investment income. |
Annual Report on Form 20-F 2023 | 387 |
![]() | Financial information | |||
Amounts in EUR millions | December 31, 2023 | December 31, 2022 | ||||||
Life insurance in force | ||||||||
Gross amount | 813,550 | 905,455 | ||||||
Ceded to other companies | (366,577 | ) | (541,793 | ) | ||||
Assumed from other companies | 273,421 | 342,375 | ||||||
Net amount | 720,394 | 706,037 | ||||||
% of amount assumed to net | 38% | 48% | ||||||
Net insurance revenue & insurance service expenses | ||||||||
Net insurance revenue & insurance service expenses - Life | (121 | ) | 188 | |||||
Net insurance revenue & insurance service expenses - Non life | 281 | (33 | ) | |||||
Total net insurance revenue & insurance service expenses | 160 | 155 | ||||||
Net income / (expenses) on reinsurance held | ||||||||
Net income / (expenses) on reinsurance held - Life | 221 | 306 | ||||||
Net income / (expenses) on reinsurance held - Non life | (39 | ) | (31 | ) | ||||
Total net income / (expenses) on reinsurance held | 182 | 275 |
Column G | Column H | Column I | Column J | Column K | ||||||||||||||||
Amounts in EUR million | Net investment income | Benefits, claims and losses | Amortization of deferred policy acquisition costs | Other operating expenses | Premiums written | |||||||||||||||
2021 | ||||||||||||||||||||
Americas | 2,909 | 10,111 | 741 | 3,003 | 5,023 | |||||||||||||||
The Netherlands | 2,088 | 3,249 | — | 806 | 1,614 | |||||||||||||||
United Kingdom | 1,691 | 7,343 | 96 | 523 | 4,419 | |||||||||||||||
International | 298 | 757 | 62 | 345 | 870 | |||||||||||||||
Asset Management | - | - | - | 411 | - | |||||||||||||||
Holding and other activities | (4 | ) | - | - | 180 | - | ||||||||||||||
Eliminations | (15 | ) | - | - | (183 | ) | - | |||||||||||||
Total | 6,967 | 21,460 | 899 | 5,085 | 11,926 | |||||||||||||||
2020 | ||||||||||||||||||||
Americas | 2,984 | 7,171 | 547 | 3,127 | 5,930 | |||||||||||||||
The Netherlands | 2,083 | 3,244 | - | 837 | 1,931 | |||||||||||||||
United Kingdom | 1,795 | 6,278 | 102 | 529 | 4,670 | |||||||||||||||
International | 307 | 810 | 105 | 350 | 860 | |||||||||||||||
Asset Management | - | - | - | 382 | - | |||||||||||||||
Holding and other activities | 4 | 7 | - | 185 | 5 | |||||||||||||||
Eliminations | (24 | ) | (5 | ) | - | (180 | ) | - | ||||||||||||
Total | 7,149 | 17,505 | 753 | 5,230 | 13,396 | |||||||||||||||
2019 | ||||||||||||||||||||
Americas | 3,166 | 8,484 | 583 | 3,181 | 6,360 | |||||||||||||||
The Netherlands | 2,224 | 3,416 | 3 | 880 | 2,090 | |||||||||||||||
United Kingdom | 1,830 | 7,722 | 100 | 607 | 6,120 | |||||||||||||||
International | 325 | 834 | 68 | 376 | 1,122 | |||||||||||||||
Asset Management | - | - | - | 388 | - | |||||||||||||||
Holding and other activities | - | 5 | - | 153 | 12 | |||||||||||||||
Eliminations | (15 | ) | (3 | ) | - | (187 | ) | - | ||||||||||||
Total | 7,531 | 20,459 | 754 | 5,399 | 15,704 |
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Amounts in EUR million | Gross amount | Ceded to other companies | Assumed from other companies | Net amount | % of amount assumed to net | |||||||||||||||
For the year ended December 31, 2021 | ||||||||||||||||||||
Life insurance in force | 977,293 | 611,912 | 397,882 | 763,263 | 52% | |||||||||||||||
Premiums | ||||||||||||||||||||
Life insurance | 13,400 | 3,326 | - | 10,074 | 0% | |||||||||||||||
Non-life insurance | 2,044 | 192 | - | 1,852 | 0% | |||||||||||||||
Total premiums | 15,444 | 3,518 | - | 11,926 | 0% | |||||||||||||||
For the year ended December 31, 2020 | ||||||||||||||||||||
Life insurance in force | 895,593 | 599,091 | 408,201 | 704,703 | 58% | |||||||||||||||
Premiums | ||||||||||||||||||||
Life insurance | 13,929 | 2,541 | 0 | 11,387 | 0% | |||||||||||||||
Non-life insurance | 2,165 | 162 | 5 | 2,008 | 0% | |||||||||||||||
Total premiums | 16,094 | 2,703 | 5 | 13,396 | 0% | |||||||||||||||
For the year ended December 31, 2019 | ||||||||||||||||||||
Life insurance in force | 955,451 | 699,005 | 480,723 | 737,170 | 65% | |||||||||||||||
Premiums | ||||||||||||||||||||
Life insurance | 15,926 | 2,276 | 0 | 13,650 | 0% | |||||||||||||||
Non-life insurance | 2,199 | 158 | 13 | 2,055 | 1% | |||||||||||||||
Total premiums | 18,125 | 2,434 | 13 | 15,704 | 0% |
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Amounts in EUR million | 2021 | 2020 | 2019 | |||||||||
Balance at January 1 | 276 | 199 | 179 | |||||||||
Addition charged to earnings | 12 | 154 | 72 | |||||||||
Amounts written off and other changes | (57 | ) | (70 | ) | (53 | ) | ||||||
Currency translation | 7 | (7 | ) | 0 | ||||||||
Balance at December 31 | 238 | 276 | 199 | |||||||||
The provisions can be analyzed as follows: | ||||||||||||
Mortgages | 6 | 6 | 6 | |||||||||
Other loans | 112 | 182 | 159 | |||||||||
Receivables | 120 | 88 | 34 | |||||||||
Total | 238 | 276 | 199 |
![]() | ||||
Amounts in EUR millions | 2023 | 2022 | ||||||
Loss allowance on January 1 | (287 | ) | (364 | ) | ||||
Impact on year end ECL of exposures transferred between stages during the year | (5 | ) | (69 | ) | ||||
Financial assets derecognized during the period | 74 | 103 | ||||||
New financial assets originated or purchased | (26 | ) | (56 | ) | ||||
Change in models | (28 | ) | 30 | |||||
Net exchange differences | 9 | (15 | ) | |||||
Transfers to disposal groups | - | 84 | ||||||
Loss allowance on December 31 | (263 | ) | (287 | ) | ||||
ECL per asset type | ||||||||
Mortgage loans | (26 | ) | (12 | ) | ||||
Debt securities | (237 | ) | (276 | ) | ||||
Total ECL on December 31 | (263 | ) | (287 | ) | ||||
Impairment charge in P&L of IFRS 9 instruments and non-financial assets | ||||||||
Mortgage loans measured at amortized cost | (15 | ) | 10 | |||||
Debt securities measured at FVOCI | (44 | ) | (108 | ) | ||||
Other | (60 | ) | (41 | ) | ||||
Net impairment charge in P&L | (119 | ) | (138 | ) |
∎ | Auditor Name: PricewaterhouseCoopers Accountants N.V. |
∎ | Auditor Firm Id: PCAOB ID 1395 |
∎ | Auditor Location: Amsterdam, the Netherlands |
Annual Report on Form 20-F 2023 | 389 |
![]() | About Aegon Governance and risk management Financial information | |||
Auditor’s report on the Annual Report on Form 20-F | ||||
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Annual Report on Form 20-F 2023 | 391 |
![]() | About Aegon Governance and risk management Financial information | |||
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Overview of Americas
Aegon Americas operates primarily in the United States and also has operations in Brazil and Canada.
Aegon in the USUnited States and Canada
In the United States, Aegon Americas operates primarily under thetwo brands: Transamerica brand.and World Financial Group Insurance Agency, an affiliated insurance agency. In Canada, Aegon Americas is also active in Canadaoperates primarily through World Financial Group Insurance Agency (WFGIA), its affiliated insurance agency operations and WFG Securities Inc., a securities dealer.of Canada. The use of the term ‘Transamerica’“Transamerica” throughout this business overview refers to the operating subsidiaries in the United States and Canada, collectively or individually, through which Aegon conducts business, except those United States operations further described in the ‘Overview“Overview of Aegon Asset Management’Management”.
Transamerica is one of thea leading life insurance companiescompany in the United States, and the largest of Aegon’s operating units worldwide. Transamerica employs approximately 7,1006,600 people, and its businesses in the United States serve customers in all fifty50 states, the District of Columbia, Puerto Rico, the US Virgin Islands, and Guam. Most Aegon companies in the United States operate under the Transamerica brand, which stands for the pursuit of financial and physical well-being: Wealth + Health. The company’s primary offices are in Cedar Rapids, Iowa; Denver, Colorado; and Baltimore, Maryland. There are additional offices located throughout the United States.
Organizational structure
Transamerica Corporation is the holding company for Aegon’s US and Canadian operations, and all US and Canadian business is conducted through its various subsidiaries. Transamerica entities collectively have operating licenses in every US state, in addition to the District of Columbia, Puerto Rico, the US Virgin Islands, and Guam.
Transamerica is structured to provide relevantprovides customer solutions that are easy to understand and thatunderstand. They address the full range of customers’ financial protection and savings needs at every stage of life. Moreover, Transamerica’s structureTransamerica leverages its brand strength, expertise, and capabilities to fulfill Aegon’s purpose of helping people live their best lives.
Transamerica is organized into two business divisions, Workplacedivisions: Individual Solutions and Workplace Solutions. Individual Solutions.Solutions offers life insurance, annuities, and mutual funds to retail customers. Workplace Solutions offers retirement plan recordkeeping,record-keeping, advisory services, employee benefits (life insurance and supplemental health insurance), group annuities, collective investment trusts, health savings and flexible savings accounts, individual retirement accounts, and stable value solutions to employers and their employees. Individual Solutions offers life insurance, annuities, mutual funds, and collective investment trusts (CITs) to retail customers. Transamerica offers these product lines, described in greater detail below, through several distribution and sales channels and delivers insurance primarily through one of its key insurance subsidiaries Transamerica Life Insurance Company and, in New York, Transamerica Financial Life Insurance Company.
Transamerica’s businesses organized intoare classified as either Strategic Assets andor Financial Assets.
Strategic Assets are those that are considered to have a greater potential for an attractive return on capital and growth. In Individual Solutions, Transamerica focuses on select life insurance and investment products, including term life insurance, final expense whole life insurance, indexed universal life insurance, mutual funds, and registered index-linked annuities (RILAs). In Workplace Solutions, Transamerica is focusedfocuses on smallsmall- to
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Several Transamerica product lines are considered Financial Assets. Financial Assets which are capital intensive assets with relatively low returns on capital employed. Thesecapital. In Individual Solutions, these are traditional VAs with interest rate sensitive guaranteed living benefits and death benefits; stand-alonevariable annuities; standalone individual long-term care (LTC) insurance; secondary guarantee universal life insurance; and fixed annuities. Universal life and single premium group annuities (SPGA) were added to the scope of Financial Assets in June 2023 at Capital Markets Day. Transamerica generally ceased new sales of these products in the first half of 2021 and any future newor earlier. New sales for Financial Assets arewill be limited, if any, and focused on products with higher returns and a moderate risk profile. In October 2022, Transamerica Life Bermuda (TLB) reinsured its closed block of universal life (UL) insurance with Transamerica. Transamerica will manage this block as a Financial Asset, while TLB will continue to write new business on a selective basis.
394 | Annual Report on Form 20-F 2023
Overview of Americas | ||||
Overview of sales and distribution channels
Transamerica offers its products and services through affiliated and
Individual Solutions
Transamerica’s Individual Solutions supports individual customers.
World Financial Group (WFG) is an affiliated insurance distribution network of around 74,000 agents who offer both Transamerica and third-party products. WFG provides differentiated access to the underserved and fast-growing middle market through a large and diverse agent force. WFG empowers agents to engage people in their local communities through financial education.
Workplace Solutions
Transamerica distributes its employer-sponsored Workplace Solutions products and services to employers and employees through independent financial advisors, benefits consultants, and insurance agents as well as through an affiliatedagents. In addition, the Advice Center deploys a team of experienced registered representatives, investment advisor representatives, and licensed insurance agents.
Overview of productbusiness lines
Individual Solutions
Life
Transamerica offers a comprehensive portfolio of protection solutions to customers in a broad range of market segments. Life insurance products include term life, (TL),indexed universal life, (UL), variable universal life (VUL), index universal life (IUL), and whole life insurance (WL).
Term life insurance
Term life insurance provides death benefit protection without cash value accumulation. Benefits are paid to policy beneficiaries in the event of the death of the insured during a specified period. Living benefit riders that provide accelerated benefits for an insured’s critical illnessesillness or chronic conditionscondition are available on term life insurance.
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Indexed universal life insurance
Indexed universal life (IUL) insurance is flexible permanent life insurance that offersprovides death benefit protection together withuntil the potential for cash value accumulation. After the first few years, there is usually no set premium. The policyholder can adjust the frequency and amount of premium payments, as long as sufficient premiums are accumulated in the policy’s account value to cover charges in the month that follows, which are called ‘monthly deductions’. Some versions of this product have ‘secondary guarantees.’ These maintain life insurance coverage when the cash value is insufficient, as long as the customer pays a specified minimum premium.
Whole life insurance
Whole life (WL) insurance provides permanent death benefit protection until the policy maturity age provided that the required premiums are paid, while accumulating cash values based on statutory requirements. Premiums are generally fixed and usually payable over the life of the policy. Among the WL insurance products offered is final expense WL insurance, which is intended to cover the insured’s medical bills and burial expenses.
Universal life insurance
Universal life (UL) insurance is flexible life insurance that offers death benefit protection until the policy maturity age together with the potential for cash value accumulation. After the first few years, there is usually no set premium. The policyholder can adjust the frequency and amount of premium payments, as long as sufficient premiums are accumulated in the policy’s account value to cover charges in the month that follows, which are called “monthly deductions.” Some versions of this product, which are not actively sold, have “secondary guarantees.” These maintain life insurance coverage even when the cash
Annual Report on Form 20-F 2023 | 395 |
![]() | About Aegon Governance and risk management Financial information Sustainability information | |||
value is insufficient, as long as the customer pays a specified minimum premium. The UL block with secondary guarantees is managed as a Financial Asset.
Variable universal life insurance
Variable universal life (VUL) insurance is life insurance that offers death benefit protection until the policy maturity age and cash value accumulation potential with financial market participation. The premium amount for VUL insurance is flexible and may be changed by the policyholder within contract limits. Coverage amounts may change as well. The investment feature usually includes ”sub-accounts,” which provide exposure to underlying investments, such as stocks and bonds. This exposure increases cash value return potential but also the risk of additional premium requirements or lower coverage amounts in comparison with a traditional, non-variable life insurance policy. Transamerica did not offer new sales of VUL insurance in 2023.
Accident and health
Transamerica Individual Solutions no longer actively offers supplemental health insurance and standalone LTC insurance.
Supplemental health insurance
Supplemental health insurance products include policies covering accidental death and dismemberment, accidental injury, cancer, critical illness, disability, hospital indemnity, Medicare supplement, retiree medical, dental, vision, and supplemental medical expense indemnity issued by affiliated and/or unaffiliated insurance companies.
Long-term care insurance
LTC insurance products are a category of health insurance and provide benefits to policyholders that require qualified LTC services when they are unable to perform two or more specified activities of daily living or develop a severe cognitive impairment. LTC insurance helps protect against the high cost of LTC services, and it may also help families better manage the financial, health, and safety issues associated with persons requiring LTC. Transamerica offers aan LTC rider on certain life insurance products and ceasedstopped offering standalone LTC products in 2021. Transamerica manages the standalone LTC insurance business as a standalone product in the first half of 2021.
Mutual Funds Exchange Traded Funds (ETF) and Collective Investment Trusts (CITs)
Mutual funds are professionally managed investment vehicles comprised of pooled money invested by numerous individuals or institutions. Such funds are invested in various underlying security types such as stocks, bonds, money market instruments, and other securities. Transamerica offers mutual funds that are focused on several different asset classes, including US equity, global/international equity, fixed income, money markets and alternative investments, as well as asset allocation and target-date funds with combined equity and fixed income strategies. Transamerica mutual funds utilize the portfolio management expertise of asset managers across the industry in
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A CIT is a pooled investment fund, held by a bank or trust company, including Transamerica Trust Company, and is generally available only to certain types of retirement plans and other institutional investors. Transamerica serves as the advisor to some of the CITs it offers, which are focusedfocus on several different asset classes including US equity, international equity, and fixed income. Transamerica also leverages the portfolio management expertise of asset managers across the industry.
Annuity Solutions
Registered Index-Linked Annuities
Transamerica began selling registered index-linked annuities (RILAs) in the second quarter of 2022. RILAs offer tax-deferred long-term savings options that limit exposure to downside risk and provide the opportunity for growth. RILAs provide the opportunity for growth based, in part, on the performance of stock market indices. RILAs offer tax-deferred growth potential, annual free withdrawal amounts, and an option to convert the annuity into a stream of income for retirement or for other long-term financial needs. RILA owners do not invest directly in the underlying index. Premiums are invested at Transamerica’s discretion as outlined in the contract and the RILA owner receives index-linked crediting, which can be positive or negative. The owner accepts a level of risk of market loss in exchange for higher upside potential.
396 | Annual Report on Form 20-F 2023
Overview of Americas | ||||
Variable Annuities
Variable Annuities (VAs) allow the policyholdercontractholder to accumulate assets for retirement on
Fixed Annuities
Fixed annuities allow the policyholdercontractholder to accumulate assets for retirement on
Workplace Solutions
Life
Transamerica offers a suite of employee benefit plans that can help employees and their families in case of events that can throw saving and retirement plans off track. The Workplace Solutions life offerings include employer sponsored group life and supplemental life insurance products (term life, whole life, universal life). Workplace Solutions also offers individual life through the contracts allowAdvice Center, which offers customers the ability to confer with a registered retirement planning consultant regarding their investment strategy and additional needs for additions only for one year after issue.
Accident and health
The Workplace Solutions employee benefit plans offer accident and health products including accidental death and dismemberment (AD&D), disability, and supplemental health insurance products (accident, cancer, critical illness, disability, executive medical, hospital indemnity, medical expense (gap), retiree medical).
Retirement Plans and IRAs
Comprehensive and customized retirement plan services are offered to employers across the entire range of defined benefit, defined contribution, and
Retirement plan services, including administration, recordkeepingrecord-keeping and related services are offered to employers of all sizes and to plans across all market segments with focus on small to
Plan sponsors have access to a wide array of investment options.options, including CITs offered by Transamerica Trust Company and stable value group annuity contracts offered by Transamerica Life Insurance Company or Transamerica Financial Life Insurance Company. Tools are provided to help plan participants monitor their retirement accounts and engage in behavior to stay on track towardstoward a funded retirement. Managed Advice
For individuals, retirement relatedretirement-related services and products include IRAs, advisory services, and annuities as well as access to other financial insurance products and resources.
Stable Value Solutions
Transamerica’s Stable Value Solutions business offers synthetic guaranteed investment contracts (GICs) primarily to
Annual Report on Form 20-F 2023 | 397 |
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Competition
The US marketplace is highly competitive. Transamerica’s competitors include other large insurance carriers, in addition to certain banks, securities brokerage firms, investment advisors, and other financial intermediaries marketing insurance, products, annuities, and mutual funds.
In individual life insurance, leading competitors include Pacific Life, Lincoln National, Prudential Financial, John Hancock, National Life, Nationwide, and AIG.Corebridge Financial. Competitors for supplemental health include a wide range of companies and company types based on the nature of the coverage including Aflac, MetLife, Colonial Life, Allstate, Unum, and Guardian Life.
In the VARILA market, the largest issuers are Jackson National,Equitable, Brighthouse Financial, Prudential Financial, Allianz, and Lincoln National, AIG, Nationwide, and Equitable.
Some of Transamerica’s main competitors in the mutual fund market include John Hancock, Principal, Hartford Funds, American Funds,Lord Abbett, PGIM, and Franklin Templeton.
In the defined contribution plan administration market, Transamerica’s largest competitors (based on assets under administration) are Fidelity, Empower, TIAA, Vanguard, Alight, Principal Financial, TIAA, Voya, Vanguard, Alight, and BofA Securities. Transamerica’s largest competitors in the defined benefit segment are Alight, Willis Towers Watson, Conduent, Fidelity, Aon, Mercer, and Milliman.
In the market for synthetic GICs, Transamerica’s Stable Value Solutions business, the largest competitors are Prudential Financial, MetLife, Voya, and Pacific Life.
Regulation and supervision
Transamerica’s insurance companies are regulated primarily at the state level. Some activities, products, and services are also subject to federal regulation.
State regulation
The Transamerica insurance companies are licensed as insurers and are regulated in each US state and jurisdiction in which they conduct insurance business. The insurance regulators in each state carry out their mission by providing oversight in the broad areas of consumer protection, market conduct and financial solvency.
Transamerica’s largest insurance company, Transamerica Life Insurance Company, is domiciled in the State of Iowa, and the Iowa Insurance Division exercises principal regulatory jurisdiction over it. Iowa is Transamerica’s designated lead state, giving Iowa a coordinating role in the collective supervision of Transamerica’s insurance entities.
In the areas of licensing and market conduct, states grant or revoke licenses to transact insurance business, regulate trade, advertising and marketing practices, approve policy forms and certain premium rates, review and approve new products and features, and certain rates prior to sale, address consumer complaints, and perform market conduct examinations on both a regular and targeted basis.
In the area of financial regulation, state regulators implement and supervise statutory reserve and minimum risk-based capital requirements. Insurance companies are also subject to extensive reporting requirements, investment limitations, and required approval of significant transactions. State regulators conduct extensive financial examinations of insurers every three to five years.
State regulators have the authority to impose a variety of corrective measures, including the revocation of an insurer’s license, and financial penalties for failure to comply with applicable regulations. All state insurance regulators are members of the National Association of Insurance Commissioners (NAIC),
Recent state-level regulatory developments that impact Transamerica include changesnew NAIC rules that allow negative interest maintenance reserves (IMR), up to 10% of statutory surplus, to be admitted. The IMR is a mechanism that defers the product illustration rules for IUL insurance.recognition of interest-related capital gains or losses. Recent interest rate increases have led to negative IMRs, which historically have not been admitted. The new rules attempt to make product illustrations more consistent across various product designs and should lead to a more level playing field for new sales within the industry.could give companies greater investment flexibility.
398 | Annual Report on Form 20-F 20212023
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The NAIC is implementing updated risk-based capital for bonds and real estate, effective at year end 2021. Thestates are also reviewing investment-related and reinsurance-related factors resultconnected with structural shifts in required capital increases for many categoriesthe insurance industry. Investment-related initiatives focus on the regulatory treatment and oversight of bonds, whereas real estateprivate, complex, structured, and/or illiquid assets, which have been used increasingly to generate competitive investment yields. Regulators are focusing on whether regulatory risk capital charges decrease. In combination,are appropriate and whether the changesrisks of these assets are appropriately considered. The reinsurance-related issues focus on the collectability of asset-intensive offshore reinsurance, which is frequently used to bond and real estate risk charges have the effect of increasing regulatoryoptimize capital requirements for Transamerica.
Other emerging state issues that may impact Transamerica include aan NAIC project by the NAIC to updatereplace the economic scenario generator that is required to be used to calculate prudential provisions for variable annuitiesVAs and other products. The NAICnew scenario generator will also be used to project “C-3 Phase 1” capital requirements for fixed annuities. Separately, the Interstate Insurance Compact is finalizing a product standard for RILAs, which will allow RILAs that meet certain design standards to be sold in most states after a single Compact approval. Finally, state regulators are also investigating emerging simplified and automated underwriting methodologies in lightworking to standardize approaches to state reviews of nondiscrimination objectives. Finally, the NAIC is also exploring enhancements to existing climate risk regulation, including solvency assessment and risk disclosure.
Federal regulation
Although the insurance and retirement-related directed trustee and CIT business is primarily regulated at the state level, securities products, and retirement plans products and services are also subject to federal regulation.
Variable life insurance, productsVAs (including RILAs) and mutual funds offered by Transamerica are subject to regulation under the federal securities laws administered and enforced by the Securities and Exchange Commission (SEC).SEC. The distribution and sale of
There continues to beare a very activenumber of pending US federal legislative and regulatory environmentproposals with respect to financial services. While thereFor example, the DOL has proposed a new definition of who should be considered an “investment advice fiduciary,” as well as another proposal to determine whether a worker should be considered an independent contractor or employee. Similarly, the SEC has proposed new rules concerning the climate risk disclosure obligations of corporate issuers and asset managers as well as the use of predictive data analytic tools (see below). There is no certainty whether or in what form these regulatory proposals might be adopted, emerging federal proposals that may impact the businesses of Transamerica include a Department of Labor fiduciary advice proposal, several legislative proposals considering independent contractor classification, and new requirements regarding the disclosure of climate risks and potentially other environmental, social, and governance factors.
Information security and privacy regulation
Transamerica’s businesses are regulated with respect to information security, data breach response, privacy, and data use at both the federal and state levels. At the federal level, various Transamerica companies are subject to the Gramm-Leach-Bliley Act (GLBA), the Fair Credit Reporting Act (FCRA), and the Health Insurance Portability and Accountability Act (HIPAA), among other laws. At the state level, Departmentsthe various departments of Insurance and Financial Servicesinsurance typically administer a series of privacy and information security laws and regulations that impact several Transamerica businesses. In addition, in recent years numerous state legislatures have passed or have attempted to pass additional, more broad-based general consumer privacy laws, such as the California Consumer Privacy Act, and the California Privacy Rights Act. Those California laws, as amended,Act, which will be administered by the newly formed California Privacy Protection Agency. Additional laws and regulations with respect to these topics are also anticipated to be promulgated and to go into effect in the coming years, and they may be administered by new or different state agencies or by the officesOffices of stateState Attorneys General. For example, New York Department of Finance Services (NYDFS) amended its Part 500 Cybersecurity Rules to adopt heightened information security requirements in relation to areas such as cybersecurity governance, cybersecurity risk assessments, and incident reporting. Implementation of the Amendment will occur in 2024 and 2025 consistent with NYDFS requirements and guidance. The White House, SEC, and other regulators have also increased their focus on companies’ cybersecurity vulnerabilities and risks, including in relation to third-party service providers. The SEC has recently adopted the Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies on July 26th, 2023 (“The Rule”). The Rule enhances and standardizes disclosures for public companies with regards to their cybersecurity risk strategy, management and governance. The Rule also requires the reporting of a cybersecurity incident within four business days of determining that an incident is deemed material. The new rules also establish disclosure requirements for Foreign Private Issuers (FPIs) parallel to those for domestic insurers in the Form 8-K and Form 10-K.
Annual Report on Form 20-F 2023 | 399 |
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The SEC has further proposed rules regarding cybersecurity requirements that apply to registered investment advisors and funds. The proposed rules would, among other things, require broker-dealers and investment advisers to eliminate or neutralize the effect of certain conflicts of interest associated with their use of artificial intelligence and other technologies that optimize for, predict, guide, forecast or direct investment-related behaviors or outcomes that could potentially have an impact to Transamerica and Aegon reporting. In addition, on December 4, 2023, the National Association of Insurance Commissioners adopted a model bulletin on regulatory expectations for the use of artificial intelligence system by insurers, following Colorado’s finalization of a similar regulation earlier in the year and in advance of possible state-by-state activity in 2024.
400 | Annual Report on Form 20-F 20212023
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![]() | Overview of United Kingdom | |||
Overview of United Kingdom
Aegon in the United Kingdom (hereafter referred to as Aegon UK)UK is the market-leadinga leading investment platform in the UK,United Kingdom, providing a broad range of savings, investment and retirement solutions and protection products to individuals, advisers, and employers.
Aegon UK accesses customers through retailthe Workplace and Retail financial advisers and the workplace and has a market-leadingleading position in each with 3.9 million customers and GBP 215 billion assets under administration (AUA).
Aegon has designated the UK as a core market with strategicUK’s focus is on growing theits Workplace and Retail and Workplace channels, and on retaining customers in its traditional insurance book. Aegon plans to invest in growing the customer base, improving customer retention and growing margins.
It employs over 2,500 people and its main offices are in Edinburgh, London, Peterborough, and Witham.
Organizational structure
Aegon UK plc is Aegon’s holding company in the UK.United Kingdom. It was registered as a public limited company in December 1998. The leading operating subsidiaries, which all operate under the Aegon brand, are:
Overview of business Lines
Aegon UK has bothoperates a modern
Aegon UK’s platform business delivers a range of propositions through RetailWorkplace and WorkplaceRetail channels, together with protection products and an institutional trading platform business. This is supported by an investment solutions capability whichthat allows customers to invest in proprietary Aegon funds, driving additional fee margin.
Aegon UK’s traditional insurance business consists of older contractsproducts that are no longer actively marketed to new customers. An
Overview of sales and distribution
Aegon UK has two principal distribution channels: the Workplace accessed through employers and Retail via financial advisers who advise Retail customers and the workplace.
Aegon UK works with those advisersemployers and employersadvisers to deliver an online experience for customers. The platform is designed to support customers throughout their life as needs evolve by providing a comprehensive range of products and funds, moving with them each time they change employers and allowing them to link inengage with different advisers.
This single set of products gives Aegon UK the ability to support customers throughout their lives with the flexibility required to support the modern, complex lives theycustomers are living to and through retirement, unlike the majority of its competitors.
Aegon UK is investing in organic growth where it is seeking to capitalize on its strong positions in the RetailWorkplace and Workplace pensionRetail markets, which are forecast to grow materially in the medium to long term.
Workplace channel
The Workplace channel provides UK-based employers with Workplace pensions and savings schemes. It allows Aegon UK to participate in the strongly growing auto-enrolment market by delivering a market leading financial wellbeing proposition. This has allowed Aegon UK to cost effectively acquire around 280,000 individual customer relationships on average over the last 3 years.
Annual Report on Form 20-F 2023 | 401 |
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Aegon UK has a leading position covering all major Workplace savings products and participates in both the small and medium-sized (SME) and large employer segments. A key driver of growth is in the Master Trust market, the fastest-growing sector of the UK Defined Contribution market, where Aegon UK has an established and market-leading offering.
Aegon UK works with leading employee benefits consultants and corporate advisers to provide a Workplace savings platform to employers such as WH Smith, EasyJet, and Skanska. This combines its core pension capabilities with Individual Savings Accounts (ISAs) and General Investment Accounts (GIAs), which allows employees to maximize their savings while employed.
At the heart of this is Aegon UK’s employee digital portal providing a personalized customer experience. This provides tools to enable employees to make more informed decisions. The portal also links into the wider engagement activities such as seminars in the workplace, and online tools that help customers consolidate assets held elsewhere, increase their savings, and transition into retirement.
Aegon UK is investing in two key areas:
• | Environmental, social, and governance (ESG) Integration – ESG is now integrated within its Workplace default investments with c. GBP 23.4 billion of assets on December 31, 2023 in strategies that include screens and optimization techniques to enhance ESG characteristics (2022: c. GBP 15.6 billion). To support its net zero commitment across its workplace default estate by 2050, Aegon UK has also published its transition plan to achieve this target. The transition plans include short and medium-term targets, including 50% reductions in scope 1 and scope 2 greenhouse gas emissions by 2030 and a commitment to invest GBP 500 million in climate solutions by 2026. |
Retail channel
The Retail channel provides financial advisers and other institutions access to long-term savings and retirement products, through an open architecture investment platform. It aims to capitalize on the strong demand for advice, especially within the growing affluent population nearing and in retirement.
Aegon UK offers a comprehensive proposition allowing advisers to manage their clientsclients’ long-term investments by offering equity trading, and a choice of over 4,500 funds.4,000 investment options. Aegon UK is continuing to develop a strong range of own brand investment solutions and plans to extend them in 2022.
Aegon UK provides a technology platform that supports advisers and their customers in managing their finances and is integrated with the back offices of the advisers. The aim is to create a primary platform relationship, which positions Aegon UK to receive the majority of new business flows from the adviser partner.
Over 4,000 adviser firms have placed business with Aegon UK in the last year across a wide range of business models. These include leading wealth management firms such as Chase De Vere, financial services networks, such as Quilter, and execution-only brokers.
Nationwide Building Society has been an important partner for Aegon UK since the relationship was established in 2017. There are plans to expand the product offering beyond Individual Savings Accounts (ISAs) and General Investment Accounts (GIAs) to pensions and other solutions. An important dimension of the Nationwide partnership is the inclusion of Aegon’sAegon UK’s own investment solutions.
Aegon UK to participateUK’s investment in the strongly growing auto-enrolment market, cost effectively acquiring around 150,000 individual customer relationships every year.
Own-Advice channel
Aegon UK has an established and market-leading offering.
In 2023 Aegon UK worksagreed a transaction with leading employee benefits consultants and corporatethe Nationwide Building Society which concluded on 1 February 2024. The agreement extends the existing product manufacturing partnership with the transfer of c. 300 staff to Origen along with the agreement of a new introducer arrangement for those advisers to provide a Workplace savings platform to employers such as WH Smith, EasyJet and Skanska. This combines its core pension capabilities with ISAs and GIAs, allowing employees to maximize their savings whilst employed, then take the product with them when they leave or choose to take financial advice in the future.
402 | Annual Report on Form 20-F 20212023
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Protection channel
In 2023, Aegon UK alsoclosed its protection channel to new business and sold the business to Royal London. The sale requires a court sanctioned transfer of the customers to be arranged and the legal process is expected to conclude in the second half of 2024.
Institutional channel
Aegon UK participates in the institutional market in two areas where investment trading capability is provided to other parties who provide policy administration to theend-client:
UK Stewardship Code and Mansion House Compact agreement
During 2023, Aegon UK was accepted as a signatory to the Financial Reporting Council’s UK Stewardship Code. Being accepted to join the UK Stewardship Code is a significant achievement, and further demonstrates Aegon UK’s commitment to become one of the top 25% responsible businesses in the United Kingdom by 2025. The UK Stewardship Code is a set of voluntary principles that aim to improve the quality of stewardship practices by asset owners, managers and service providers. To become a signatory, organizations must clearly demonstrate that they have exercised effective stewardship over the previous 12 months through good governance and active engagement which has helped to generate long-term positive impacts for the economy, the environment, and/or society. For a summary and copy of our Responsible Investment and Stewardship Report 2022, please see here.
Also during 2023 Aegon UK became a founding signatory of the Mansion House Compact agreement. The Compact is a voluntary, industry-led expression of intent to take meaningful action to secure better outcomes for UK pension savers through increased investment in unlisted equities. In line with the Compact’s intention, Aegon UK is committing to increasing the proportion of the pension assets it manages for clients which are invested in unlisted equities. The target is to allocate at least 5% of defined contribution default funds to unlisted equities by 2030, importantly in a way that is consistent with acting in the best interests of its pension scheme members.
Competition
Aegon UK is well positioned for growth, possessing a market leading positionpositions in the markets it operates in with strong growth potential.
Aegon UK encounters different competitors in each of its core markets, but is unique in the way it supports intermediaries wishing to operate across channels providing an
In the Workplace market, Aegon UK provides employee benefits, engagement, and scheme governance. And, competitorsCompetitors include Aviva, Legal & General and Willis Towers Watson.
In the Retail market, Aegon UK aims to become the “primary platform” for intermediaries. Competitors include Aviva, Quilter and Abrdn.
Regulation and supervision
All relevant Aegon UK companies based in the UKUnited Kingdom are either: authorized by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA; or authorized and regulated by the FCA, dependent on firm type.
Scottish Equitable plc is authorized by the PRA and is subject to prudential regulation by the PRA and conduct regulation by the FCA. Every life insurance company licensed by and/or falling under the supervision of the PRA must file audited regulatory reports at least annually. These reports are primarily designed to enable the PRA to monitor the solvency of the insurance company, and include a (consolidated) balance sheet, a (consolidated) income statement, a breakdown of the Solvency Capital Requirements, extensive actuarial information, and detailed information regarding the investments of the insurance company. The PRA’s regulatory reportingAegon UK is based on a single entity focus and is designedalso subject to highlight risk assessment and risk management.group supervision at the level of Aegon UK plc under the UK Solvency II regulations.
Annual Report on Form 20-F 2023 | 403 |
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The Aegon Master Trust is subject to regulatory oversight by The Pensions Regulator as a result of the United Kingdom’s exit from the EU.
Following the United Kingdom’s exit from the European Union, financial regulation derived originally from EU legislation has been retained by the United Kingdom. The UK Government and Regulators have reviewed the UK Regulatory Framework and are moving to a model in which UK Regulators lead on developing regulatory requirements for financial services firms. The UK Regulators are accountable to, and scrutinized by, HM Treasury and Parliament. The Edinburgh Reforms announced by the UK Government in December 2022 aim to drive growth and competitiveness in the financial services sector. The reforms include repealing and reforming EU law using powers within the Financial Services and Markets Bill to build a regulatory framework for the UK. The first tranche of reforms was implemented with effect from 31 December 2023, including the reform of the Risk Margin. Further tranches of reforms are planned for implementation in 2024.
Regulatory Solvency Requirements
The UK adopted Solvency II regulations and Binding Technical Standards as they stood at the end of the Brexit transition period on December 31, 2020, into UK law. Temporary Transitional Powers are in place under which certain provisions of these onshored regulations will continue to apply until March 31, 2022. Consequently, the UK continues to adopt regulatory solvency requirements which are broadly aligned to those under Solvency II. UK life insurance companies are required to maintain Own Funds which are sufficient to withstand
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Since the introduction of Solvency II on January 1, 2016, Scottish Equitable plc has been using the Aegon GroupAegon’s Partial Internal Model (PIM) to calculate its solo solvency position and its contribution to group solvency.position. Following the end of the Brexit transition period, the PRA approved the use of the existing PIM for the calculation of the solo regulatory solvency requirements of Scottish Equitable plc. The UK PIM and Group PIM are currently aligned and Aegon UK intends to maintain close alignment in the future, where this remains appropriate.
Aegon UK plc uses the sale of the majority of its annuity business in 2017, Scottish Equitable plc ceasedAegon UK PIM to calculate Aegon UK’s group solvency position. The PRA approved the use of this model to calculate Aegon UK’s group solvency position, with effect from March 31 2023, following the Transitional Measures on Technical Provisions.
Regulatory requirements for investment firms
Cofunds Ltd,Limited, Aegon Investment Solutions Ltd,Limited and Aegon Investments Ltd, Momentum Group Ltd, Origen Financial Services Ltd, and Origen Ltd. Aegon UK Investment Holdings Ltd and these subsidiaries are referred to as Aegon UK Investment Group (AUKIG). From January 1, 2021, much of Aegon UK’s regulatory reporting has been on an AUKIG basis.
Information security and privacy regulation
Privacy regulations that impact Aegon UK currently are the UK General Data Protection Regulation (GDPR), Data Protection Act 2018, Privacy and Electronic Communications Regulations (PECR). The Data Protection and Digital Information Bill, which is more focus onin the impactprocess of risksgoing through UK Parliament, will amend all three of these regulations. As noted above, all relevant Aegon UK companies are either: authorized by the PRA and regulated by the FCA and the potential harmPRA; or authorized and regulated by the FCA. Therefore, in relation to clients, wider marketsCyber Security, Aegon UK is subject to annual independent financial and the firm itself. There is also a greater focus on liquidity.Information Technology audits by both internal and independent third-party auditors. These address Aegon UK’s security controls and risk management.
404 | Annual Report on Form 20-F 20212023
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Overview of International
Aegon International consists of the two growth markets, China andincludes partnerships in Spain & Portugal, Aegon’s business in CentralChina and Eastern Europe, the
Aegon’s presence in the Spanish insurance market dates back to 1980. The activities in Spain (and eventually Portugal) have developed largely through distribution partnerships with major Spanish banks Banco Santander S.A. and Liberbank S.A. Spain & Portugal are now one of the three growth markets of Aegon Group. In 1992, Aegon purchased the majority stake in Hungary’s former state-owned insurance company, Állami Biztosító. It expanded in Central & Eastern Europe (CEE) in the 2000s. Operations in Asia were established in 2003, starting with a JVjoint venture in China, which is another growth market for Aegon. TLBChina. Transamerica Life Bermuda (TLB) was established in 2005 and incorporated in Hamilton, Bermuda followed byin 2005. Its full-service branches openings in Hong Kong and Singapore were established in 2006.
In 2008, Aegon entered into a joint venturelife insurance partnership in India was formed.
In November 2020, Aegon announced an agreement to sell its Central and& Eastern European operations (Poland,(Hungary, Poland, Romania, Turkey, and Hungary)Turkey) to Vienna Insurance Group AG Wiener Versicherung Gruppe, as part of its strategy to focus on key markets, simplifychosen markets. During the footprint, and strengthencourse of 2022, the balance sheet.transaction completed for all four businesses. This transaction closed over several stages, with the final stage completed in June 2023.
Since January 1, 2022, Mongeral Aegon Group (MAG Seguros) is still to complete.
Organizational structure
The key lines of business within the regionAegon International are China, Brazil, Spain & Portugal Hungary, TLB, and China.TLB. The remaining business units are grouped in one category called “Others” for reporting purposes. The corresponding principal subsidiaries and affiliates (including Aegon’s ownership percentages, where relevant) are as follows:
Spain & Portugal:
Aegon Santander Portugal Não Vida-Companhia de Seguros S.A. (Aegon Santander Portugal Non-Life Insurance Co.) (51%) |
Aegon Santander Portugal Vida-Companhia de |
China:
Brazil:
TLB:
Other subsidiaries:
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Overview of sales and distribution channels
Aegon International distributes its products directly to consumers (online and/or physical branches) and via banks, brokers, (tied) agents, and other digital/
The sales and distribution channel mix varies per country, reflecting the differences in the local insurance markets. The strategy is to invest in digital distribution platforms, particularly in China, to build distribution capabilities for the future.
Annual Report on Form 20-F 2023 | 405 |
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Spain & Portugal
In Spain & Portugal, the life insurance and health products are sold by Santander Life Insurance and Reinsurance, whereas the
Aegon España’s own distribution channel offers life, health, and pension products. The network of brokers and agents accounts for approximately 80% of the total sales of the fully owned subsidiary, and the remaining 20% is generated by the direct channel.
China: Aegon THTF
Aegon operates in China through a joint venture with Tongfang Co. Ltd., Aegon THTF Life Insurance Co., Ltd. (hereafter: Aegon THTF). The JVjoint venture is licensed to sell life insurance, annuity, accident and health products in China. Since 2003, the company has expanded its network of branches, primarily in the coastal provinces of Eastern China. It has access to a potential market of approximately 700 million people.
Aegon THTF follows a multi-channel distribution strategy, including agency, brokerage,brokers, banks, direct marketing, group sales and digital
Brazil: MAG Seguros
In Brazil, the joint venture has two major insurance companies generating revenue streams, MAG Seguros and Sicoob Seguradora. Together, they have 6.25 million clients in 2023. More than half of MAG Seguros’ annual new premium is sold by home-recruited individual brokers and market life insurance specialists, hosted in a proprietary environment called Sales Rooms. The independent investment agents are the second-largest distribution model, selling mostly term and whole life policies. The rest is spread among individual and/or group life products distributed through large brokerage firms, digital direct sales, and partners/cooperatives, including affinities and credit life in B2B2C models. Sicoob Seguradora distributes individual, group and credit life protection products in a bancassurance model through affiliate agencies to its cooperative associates.
TLB and Aegon Annual ReportInsights
TLB distributes its life insurance products to HNW customers through targeted distribution relationships with selected local and international brokers, financial advisors, and via bancassurance channels.
With its singular focus on Form 20-F 2021
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Aegon Insights is a marketing, distribution, and administration services business operating in Asia Pacific. With changes in consumer preferences, in 2017 Aegon made the strategic decision to discontinue Aegon Insights’ and put it in run-off. In 2023 it sold its Japanese and Hong Kong operations, while continuing to provide services to the existing customer base in Australia.
India: Aegon Life
Since 2008, Aegon operates in India through its joint venturepartnership with Bennett, Coleman & Co. Ltd. (BCCL). The joint venture,Our associate, Aegon Life Insurance Company, Ltd. (hereafter: Aegon Life), has a mobile and digital consumer model, working through large scalelarge-scale digital partners. In order to focus on the digital, partnership-driven strategy, the traditional distribution channels were closed inpartners since December 2020.
Overview of business lines
Aegon International focuses on serving retail customers with individual life and different types of general, accident, and health insurances.
Life Insurance, Savings & Protection
Spain & Portugal’s life insurance business comprises of life savings and individual and group protection products, where individual life-risk and health products form the larger part of the business. Customers’ savings needs are serviced by Aegon España through its affiliates, offering universal life and unit-linked products. Protection business, pursued both in Spain & Portugal, includes primarily life, health, accident, and disability cover distributed through the JVsjoint ventures and Aegon España’s own channels. These products can typically be complemented with critical illness, income protection, and other riders.
In Asia, Aegon provides a broad range of life insurance products, including unit-linked, universal life, and traditional life products.
406 | Annual Report on Form 20-F 2023
Overview of International | ||||
TLB has updated anda diversified its product suite. Along with its enhanced flagship productsuite of Universal Life Alpha Pro & Pro Century, its offerings now include the Genesis Indexed Universal Life (IUL) product, that provides a lower guarantee combined with a greater wealth accumulation potential, and the Trendsetter Ultra Term Life, designedproducts tailored for HNW personal and business protection. protection as well as wealth accumulation potential.
In China, whole-liferegular premium whole life products with increasing sum assured, whole life products with level sum assured, and whole life critical illness products are key products for many channels, such as agencyagencies, banks, and broker.brokers. Products such as participating annuity and endowment (via agency), whole life insurance products (via agency, brokers) and protection with return of premium (via direct marketing) are also offered. Regular premium whole-life insurance and single premium endowment are the key products offered in the bancassuranceDigital channel while the digital channel is currently focusedfocuses on offering protection products, such as term life.
In India, Aegon Life currently offers Group term plans, individual term plans, and unit-linked life insurance plans.
In Brazil, most of the new businesses of MAG Seguros are individual life-risk products. The greater part of them are whole life or yearly renewable policies without cash value with riders such as temporary disability, critical illness, surgeries, or home services. Sicoob Seguradora sells individual and credit life policies. Both companies offer group life solutions for corporate markets.
Health insurance
Health insurance is primarily offered as riders on life insurance policies in Spain & Portugal and China and as a standalone health insurance in TurkeySpain and Spain.
In Spain, health insurance is offered through Aegon’s own channels and through Santander’s branches. Aegon collaborates with medical partners across the country. In Portugal, it is also offered through Santander Totta’s distribution network.
Aegon THTF offers
In Brazil, MAG Seguros has developed a segment within its life insurance operation called “Well being Pillar” aimed a target market of 100 million people underserved by public health and agency channels.
Pensions
In Spain, customers’ pension saving needs are serviced byBrazil, the joint venture operates pensions throughout several strategies. It partners with Liberbank Lifeexisting pension funds and Pensionsoffers embedded life and Aegon España through its managed pension funds.
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General insurance
Aegon España has been offering general insurance products, mainly household protection, unemployment, accident, dependency, and funeral insurance, since 2013 through its joint ventures with Banco Santander.
In Brazil, MAG Seguros launched in 2022 a new general insurance company called Simple2U under Brazil regulator’s sandbox. The startup offers various
Competition
Spain & Portugal
The Spanish insurance market is highly competitive. For traditional life, unit-linked variable life and pension products, the major competitors are retail bank-owned insurance companies. For health and general insurance products, the main competitors are both foreign and local companies. Aegon España is the exclusive provider of protection products to Banco Santander. The exclusive partnership also holds for Portugal. Key competitors for Aegon’s JVsjoint ventures with Banco Santander in Spain and& Portugal are large traditional insurance companies.
China
From June 30, 2021,2023, there were 91 life insurance companies in the market, including 6364 domestic life companies and 2827 foreign life insurers. Based on the gross written premium (GWP), Aegon THTF ranked 50thforty-sixth among 8074 companies that
Annual Report on Form 20-F 2023 | 407 |
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have published their GWP data and 15thfifteenth among foreign life companies in China. Aegon THTF’s market share among foreign life insurers was 2.0% in terms of total premium.
Brazil
In Brazil, MAG Seguros operates predominantly in life insurersinsurance. Although less than in India at the endpast, 65% of August 2021. While the state-owned Life Insurance Corporationmarket is still concentrated in bank-owned companies. With 11% of India continues to maintain a dominantmarket share of new business premiums (both individualthe independent life insurance companies, the joint venture ended during the first semester of 2023 holding the third position in the ranking, behind Prudential (21.5%) and group), private sector companies have grown only modestly to obtain more than 62% of the individual recurring new business premiums written (April 2021 to August 2021)Icatu (13.6%). Aegon Life IndiaThe asset management company MAG Investimentos is ranked 23rd among private life insurers according to individual recurring premiums (April 2021 to August 2021).
TLB
TLB’s main competitors in Asia have mainly been other global life insurance providers such as, HSBC Life, Manulife Bermuda, and Sun Life Bermuda. The local subsidiaries of both Sun Life and Manulife, in addition to domestic insurers such as AIA, HSBC, Great Eastern, Life, Singapore Life, Generali, AXA, and FWD, have also been developing competitive offerings for thisthe HNW market segment.
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Regulation and supervision
Spain & Portugal and Central and Eastern Europe
In the European Union, a single insurance company may only be licensed for and conduct either a life insurance business or
State supervision and oversight of the insurance industry is conducted by the following bodies and institutions:
The authorities mentioned above promote consumer protection and have the right to investigate prudential activities and conduct, financial position and solvency, and compliance with all relevant laws.
In Spain, the pension system is supervised by DGSFP and governed by Law on Pension Funds and Plans approved by Royal Legislative Decree, and its implementing regulations.
China
In the first half of 2023, the National Administration of Financial Regulation (NAFR) was officially inaugurated in Beijing. The NAFR was established on the basis of the former China Banking and Insurance Regulatory Commission, (CBIRC). In 2021,which will comprehensively strengthen supervision.
During this period, the main work focusNAFR strengthened the supervision of products by lowering pricing interest rates, implementing new product information disclosure rules and clarifying the commission ceiling of bank insurance business. At the same time, the NAFR released regulations in order to optimize requirements of the CBIRC was tocompany’s solvency management.
The regulation and legislation of the NAFR will further strengthen corporatethe governance system of financial institutions by carefully reviewing of shareholder qualifications and strengthen product control. shareholder behaviors.
Brazil
In order to consolidateBrazil, Aegon has operations involving life insurance, non-life insurance, and supplementary private pension, as well as financial asset management and collection. Considering this portfolio of operations, the management responsibilitystate supervision and oversight of insurance institutions, new regulation has been introducedAegon’s companies is conducted by the CBIRC with stronger controls, withfollowing bodies and institutions:
The authorities mentioned above have the aim of improving product developmentright to investigate prudential activities and conduct, financial position and solvency, and compliance practices.with all relevant laws.
408 | Annual Report on Form 20-F 2023
Overview of International | ||||
TLB
TLB is incorporated in Bermuda and regulated by the Bermuda Monetary Authority, the Regulator of the financial services sector in Bermuda. TLB has full-service branches which are registered and licensed in Hong Kong and Singapore, respectively. The Insurance Industry is regulated in Hong Kong by the Hong Kong Insurance Authority (HKIA) and in Singapore by the Monetary Authority of Singapore (MAS). Hong Kong’s Insurance Authority (IA) is currently developing HK RBC,Hong Kong risk-based capital (HK RBC), a risk-based capital regime that is consistent with core principles issued by the International Association of Insurance Supervisors (IAIS). Under this regime, the capital requirements of licensed insurers will be determined based on the level of risk faced by the insurer. Once in effect, HK RBC will significantly transform the current capital framework defined in the Hong Kong Insurance Ordinance (HKIO). TLB is well progressedadvanced in its RBC developments.
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Aegon Insights
A broad range of regulations apply to Aegon Insights’ activities. Depending on the precise nature of the activities undertaken and the form of business entity used in the jurisdictions in which Aegon Insights operates, relevant regulations include marketing/consultancy business licensing rules, insurance laws, and personal data protection laws. In addition, various regulators also keep oversight of activities undertaken by entities licensed by Aegon Insights. These regulators include the Australian Securities and Investments Commission in Australia,Australia.
India
Indian life insurance companies are regulated by the Insurance Regulatory and Development Authority of India (IRDAI). The IRDAI regulates, promotes, and encourages the Hong Kong Insurance Authority.
Solvency
Aegon’s
Aegon’s Asian insurance activities are included in the AegonAegon’s Group Solvency II ratio through Deduction & Aggregation. For TLB, Deduction & Aggregation is applied using available and required capital as per the local Bermuda capital regime. The regulatory regime of Bermuda was granted full equivalence at the inception of Solvency II in 2016.
Annual Report on Form 20-F 2023 | 409 |
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Overview of Aegon Asset Management
Aegon Asset Management (Aegon AM) is an active global investor. 375Its 385 investment professionals manage and advise on assets of EUR 410305 billion as of December 31, 2021,2023, for a global client-baseclient base of corporate and public pension plans, public funds, insurance companies, banks, wealth managers, family offices, and foundations.
Organizational structure
Aegon AM provides investment management expertise to institutional and private investors around the world. It has offices in the United States, the Netherlands, the United Kingdom, China, Japan, Germany, Hungary,Spain and Spain.Hungary. Its investment capabilities are focused around four investment platforms, each with asset-class expertise: private and public fixed income, real assets, private and public equities, and multi-asset and& solutions. Across these platforms, the investment teams are organized globally and there is a common belief in fundamental, research-driven active management, underpinned by a focus on risk management and a strong commitment to responsible investing.
Aegon AM holds two key strategic partnerships:
On October 27, 2022, Aegon agreed an exclusive long-term partnership with a.s.r. to manage the illiquid fixed income investments that are part of the general account of the combined Aegon Netherlands and a.s.r. insurance businesses. In addition, it continues to be the asset manager for Aegon Netherlands’ legacy retirement and unit-linked products and the investments of Aegon Cappital’s PPI proposition. It also agreed to take over the management of a.s.r.’s mortgage and private debt funds.
On July 4, 2023, Aegon AM announced the closure of the transaction with a.s.r. With it, Aegon AM further strengthened its alternative fixed income capabilities. At the same time, management of Aegon Netherlands’ general account liquid fixed income assets transferred to a.s.r. Asset Management. The deal saw Aegon AM welcome 20 FTEs from a.s.r. while transferring 28 FTEs the other way. Aegon AM also welcomed 135 third-party mortgage clients and in excess of EUR 16 billion AuM in mortgage and illiquid debt assets, as well as two new funds. Liquid assets worth around EUR 9.4 bn were transferred to a.s.r. Asset Management.
Aegon AM also acquired NIBC Bank’s European Collateralized Loan Obligation (North Westerly) business with EUR 1.2 billion in AuM at the end of June 2023. In the US CLO business, Aegon AM experienced growth with a new $400 million CLO, Cedar Funding 17, which funded in July 2023. This was the first CLO with Aegon AM’s main entitiesnew equity sponsor, Lakemore Partners, who is helping it gain enhanced market access and further solidify Aegon AM’s ability to take full advantage of new issue CLO opportunities.
In 2023, Aegon AM’s joint venture, LBPAM acquired La Financière de l’Echiquier (LFDE), a French equity investment platform with a growing presence in France, Germany, Italy, Spain, Belgium and Switzerland. The transaction further accelerated LBPAM’s journey to become a multi-specialist, multi-channel French champion in active asset management. There are furthermore strong synergies between LBPAM and LFDE in terms of customers and distribution channels. By co-funding the acquisition Aegon USA Investment Management LLC, Aegon USA Realty Advisors LLC, Aegon Investment Management B.V., Aegon Asset Management UK plcmaintained its 25% shareholding in the joint venture and Aegon Investment Management (Shanghai) Ltd. (a Wholly Foreign Owned Enterprise).
Aegon AM has a global operational management board (Global Board).board. The strategic direction and global oversight of business performance is executed by this Global Board, which has both global and local roles and responsibilities. This board is supported by several
410 | Annual Report on Form 20-F 2023
Overview of Asset Management | ||||
Overview of sales and distribution channels
Aegon AM utilizesuses both institutional and wholesale distribution channels combining a global perspective with a focus on local relationships in the Americas, Europe and Asia.China. Client types include banks, pensions funds, insurance companies, fiduciary managers and Outsourced Chief Investment Officers (OCIO’s), family offices, investment consultants, wealth managers, charities, foundations, &and endowments, third-party investment platforms, as well as its affiliated companies and joint ventures.
Overview of business lines
Aegon AM has three distinct business lines:
Third-party business accounts for circa 53%approximately 65% of its Assets under Management (AuM). The main sources for this include third-party business where Aegon Asset Management distributes its investment strategies directly to its clients. as at December 31, 2023. The wholesale businesseschannel typically sellsells collective investment vehicles (mutual funds) to customers through wholesale distributors and independent intermediaries. The asset classes are fixed income, equities, real assets, and multi-asset &and solutions with fund performance usually measured against a benchmark or peer group. The institutional businessesbusiness typically sellsells its services to large insurance companies, fiduciary managers, and
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Affiliates also source third-party business in areas where Aegon AM manages funds for Aegon insurers and retirement companies.companies (approximately 12% of AuM). These funds have various legal structures and performance is usually measured against a benchmark or peer group. The main asset classes include fixed income, equities, real estate, and multi-asset.
The Aegon and Transamerica general account isaccounts are the third source thisof assets (approximately 23% of AuM). This consists of funds held on the balance sheet of AegonAegon’s insurance companies to back policyholder liabilities, typically when the insurer has given the policyholder a guarantee. These assets are managed to match the insurers’ liabilities. As a rule, general account assets are managed in a closed architecture structure, and the main asset classes are fixed income and real assets.
Furthermore, Aegon AM managesmanaged the general account derivatives book of Aegon the Netherlands.
Aegon AM has decided to further simplify its activities in Global Platforms to improve efficiency and profitability. Focus lies on three priorities: growth in real assets and alternative fixed income assets, being a recognized leader in responsible investing and helping partners with our core offerings to build market leading retirement and insurance platforms. As a result, Aegon AM will further rationalize its product set and has taken cost reduction measures.
Competition
Aegon AM competes with other asset management companies to acquire business from Aegon customers in the open-architecture parts of the affiliate business and from third parties.
In the United States, Aegon AM focuses on offering investors core fixed income, alternative fixed income, equity, and real estateasset related strategies. It works directly with pension funds, insurance companies, family offices, endowments, and foundations as well as investment consultants within the institutional market. In the wholesale market, Aegon AM works as
In continental Europe, Aegon AM focuses on offering investors core and alternative fixed income, equities, real estate, and multi-asset and solutions strategies to institutional and wholesale clients, and through its affiliated insurance company to retail clients. In the Netherlands, Aegon AM also offers fiduciary services to institutional clients. In the third-party institutional market, it competes with domestic and global asset managers, as well as with fiduciary and balance sheet managers. Competition continues to be strong in the institutional market due to both the ongoing consolidation of pension funds and the growing service requirements of pension fund clients. Primary competitors in the Netherlands include BlackRock, Robeco, NN Investment Partners,GSAM, Achmea, and Kempen.Kempen van Lanschot.
Annual Report on Form 20-F 2023 | 411 |
![]() | About Aegon Governance and risk management Financial information Sustainability information | |||
In the United Kingdom, Aegon AM focuses on offering investors fixed income, equities, real estate, and multi-asset and& solutions strategies. It serves institutional clients and their advisors and is active in the wholesale market. Primary competitors in the UKUnited Kingdom include Abrdn, Aviva Investors, LGIM, Janus Henderson, Insight Investment, M&G, and M&G.
In mainland China, AIFMC focuses on Chinese equity, fixed income, multi-asset and money market strategies. It competes against a wide range of locallocally based asset managers including Alibaba’s Yuebao fund, China Universal Asset Management, E Fund Management, Fullgoal Fund Management, and Yinhua Fund Management. The company’s products are distributed through banks, securities brokers, and digital platforms.
In France, La Banque Postale Asset Management services private investors through La Banque Postale’s retail banking network and with LFDE through independent advisors, representing LBPAM, LFDE, and Aegon Asset Management-advisedAM-advised strategies. In the institutional market, it also offers investment strategies from Aegon Asset ManagementAM to compete for affiliate and third-party insurance and pension clients with large local asset managers and specialized international competitors. In France, primary competitors include Amundi Asset Management, AXA Investment Management, and BNP Paribas Investment Partners. LBPAM is in the process of selling its 45% stake in Ostrum, a joint-venture with Natixis that focuses on providing public market fixed income asset managementPartners, Carmignac and operational investment services to insurance companies.
Regulation and supervision
Regulation of asset management companies in general differs to that of insurers. Aegon AM’s local operating entities are regulated by their local regulators, most notably the Dutch Authority for the Financial Markets (AFM) (conduct of business supervision) and the DNB (prudential supervision) for Dutch-based entities, the Financial Conduct Authority (FCA) for Aegon Asset Management UK plc, and the Securities & Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for the
412 | Annual Report on Form 20-F 20212023
![]() | Risk factors Aegon | |||
Risk factors Aegon N.V.
Aegon faces numerous risks, some of which risks may arise from internal factors, factors, such as failures of compliance systems and other operational risks. OthersOther risks may arise from external factors, such as developments in financial markets, the business and/or political environment, economic trends politics and regulations. Any of the risks described below, whether internal or external, may materially and adversely affect the Company´sCompany’s operations, its earnings, the value of its investments, the sale of certain products and services or its ability to fulfillfulfil its obligations in respect of securities issued or guaranteed by it. The market price of Aegon securities could decline due to any of the risks described in this section and investors could lose some or all of the value of their investments.investments in Aegon securities. Additional risks of which Aegon is not presently aware could also materially and adversely affect its operations and share price. The business of an international financial services group such asAs with all businesses, Aegon is inherently exposed to risks that may only become apparent with the benefit of hindsight.
This chapter groups the risk factors into different categories based on the origin of the risk, while recognizing that the identified risk factor can have broader consequences, e.g. developments on
Summary
The described risk factors below may affect Aegon’s businesses and operations in normal market circumstances and in periods of significant economic uncertainty, when the manifestation of those risks may be more acute.
1. Financial risks
2. Underwriting risks
3. Operational risks
Annual Report on Form 20-F 2023 | 413 |
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Issues with third party providers, including events such as bankruptcy, disruption of services, poor performance, non-performance,or standards of service level agreements not being upheld |
4. Political, regulatory and supervisory risks
5. Legal and compliance risks
6. Risks relating to Aegon’s common shares
Financial risks
Rapidly rising interest rates may adversely affect Aegon’s profitability and available liquidity.
Aegon uses derivative instruments to help manage interest rate volatilityrisk. In periods of rapidly rising rates Aegon is required to post more collateral under these derivative contracts, which can cause a strain on liquidity, as experienced since 2022. In addition, rapidly rising interest rates can cause policy loans, surrenders and sustainedwithdrawals to increase. This activity may result in cash payments by Aegon requiring the sale of invested assets at a time when the prices of those assets are affected adversely by the increase in market interest rates. This may result in realized investment losses.
These cash payments to policyholders also result in a decrease in total assets. Early withdrawals may also impact the CSM which results in lower future CSM releases and as such lower future net results.
Sustained low or negative interestinte414r414est rate levels may adversely affect Aegon’s profitability and shareholders’ equity.
Aegon is exposed to interest rate risk as both its assets and liabilities are sensitive to movements in long- and short-term interest rates as well as to changes in the volatility of interest rates.
During periods of decreasing interest rates, sustained low or even negative interest rates, as experienced in recent years, Aegon may not be able to preserve profit margins in spread-based businesses due to the existence of minimum interest rate guarantees and minimum guaranteed crediting rates provided in policies. Investment earnings may be lower because the interest earnings on new fixed-income investments are likely to have declined with the market interest rates. A prolonged low or even negative interest rate environment may also result in a lengthening of maturities of the policyholder liabilities from initial estimates, due to lower
414 | Annual Report on Form 20-F 2023
Risk factors Aegon Ltd. | ||||
policy lapses and longer duration of annuities. In this context, negative interest rates have comparable but larger impacts than low but positive rates.
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Aegon, in managing its investments and derivative portfolio, considers a variety of factors, including the relationship between the expected duration of its assets and liabilities. However, if interest rates remain low or even negative, the yield earned upon reinvesting interest payments from current investments, or from their sale or maturity, may decline. Reinvestment at lower yields may reduce the spread between interest earned on investments and interest credited to some of Aegon’s products and accordingly profitability may decline. In addition, borrowers may prepay or redeem fixed maturity investments or mortgage loans in Aegon’s investment portfolio in order to borrow at lower rates. Aegon’s ability to lower crediting rates on certain products to offset the decrease in spread may be limited by contractually guaranteed minimum rates or competitive influences.
Depending on economic developments, interest rates for securities with shorter maturities may remain at low or even negative levels for a prolonged period. In such an environment, an anchored expectation of low inflation or deflation could further push down the longer end of the interest rate curve, which could have significant implications for Aegon’s profitability.
Disruptions in the global financial markets and general economic conditions may affect, and could have material adverse effects on, Aegon’s businesses, profitability, liquidity and financial condition.
Aegon’s profitability and financial condition may be materially affected by uncertainty, fluctuations or negative trends in general economic conditions, such as economic growth, levels of unemployment, consumer confidence, inflation and interest rate levels in the countries in which Aegon operates. The
Any disruptions or downturns in the global financial markets or general economic conditions may result in reduced demand for Aegon’s products as well as impairments and reductions in the value of the assets in Aegon’s general account, separate account, and company pension schemes. Aegon may also experience a higher incidence of claims and unexpected policyholder behavior such as unfavorable changes in lapse rates. Aegon’s policyholders may choose to defer or stop paying insurance premiums, which may impact Aegon’s businesses, profitability, cash flows and financial condition, and Aegon cannot predict with any certainty if or when such actions may occur.
Governmental action in the United States, the Netherlands, the United Kingdom, the European Union and elsewhere to address market disruptions and economic conditions may impact Aegon’s businesses. Aegon cannot predict the effect that these or other government actions, including economic sanctions, as well as actions by the European Central Bank (ECB) or the US Federal Reserve may have on financial markets or on Aegon’s businesses, profitability, cash flows and financial condition.
Higher inflation may adversely affect Aegon’s business plans and strategy and the profitability of its business.
The major global economies have experienced elevated levels of inflation in recent years. It is driven by many factors, such as supply chain disruption, energy and commodity costs. While it remains uncertain whether inflation increases are transitionary or lasting, central banks have increased interest rates and adjusted monetary policies to combat inflation.
A high inflation environment can adversely affect Aegon directly through higher claims and higher expenses or through broader macro-economic impacts that are associated with high inflation, such as a reduction to the market value of assets.
Certain products Aegon offers have a direct or very strong link to inflation, most notably index linked pension products. Other products have a correlation to inflation over the longer term, such as long-term care insurance products. It is Aegon’s practice to hedge the indexation of pension products but it is not possible to hedge the inflation associated with long-term care insurance products as no instrument exists to match this risk. Aegon mitigates this risk by close management of claims costs and benefits in the United States.
Annual Report on Form 20-F 2023 | 415 |
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Operating expenses have a strong correlation with inflation (wage and price inflation). An increase in observed inflation may lead to increased expenses and a lower earnings if Aegon is unable to offset the expense of inflation through expense savings initiatives.
Higher inflation may have broader economic impacts on asset valuations and economic activity, which will adversely impact Aegon’s business plans and strategy and its profitability.
Illiquidity of certain investment assets may prevent Aegon from selling investments at fair prices in a timely manner and Aegon’s access to external financing sources may be constrained under certain circumstances.
Aegon must maintain sufficient liquidity to meet short-term cash demands under normal circumstances, as well as in crisis situations. Liquidity risk is inherent in many of Aegon’s businesses. Each asset purchased and liability (e.g. insurance products) sold has unique liquidity characteristics. Some liabilities can be surrendered, while some assets, such as privately placed loans, mortgage loans, real estate and limited partnership interests, are to some degree illiquid. In depressed markets, Aegon may be unable to sell or buy significant volumes of assets at quoted prices.
Any security Aegon issues in significant volume may be issued at higher financing costs if funding conditions are impaired.
Aegon makes use of bilateral and syndicated credit facilities to support liquidity requirements and meet payment obligations under adverse (market) conditions. An inability to access these credit facilities, for example due to
Aegon’s derivatives transactions require Aegon to provide collateral against declines in the fair value of these contracts. Volatile financial markets may significantly increase requirements to provide collateral and adversely affect its liquidity position. Further, a downgrade of Aegon’s credit ratings may also result in additional collateral requirements.
Aegon’s investments are subject to credit risks, decline in value and defaults in debt securities, private placements, mortgage loan portfolios and other instruments held in Aegon’s general and separate accounts, or the failure of certain counterparties, may have a material adverse effect on Aegon’s businesses, profitability, cash flows and financial condition.
Credit risk is the risk of loss resulting from the default by, or failure to meet contractual obligations of, issuers and counterparties. Aegon also considers credit risk to include spread risk, that is, a decline in the value of a bond due to a general widening of credit spreads. For general account products, Aegon typically bears the risk for investment performance equalingequalling the return of principal and interest on fixed income instruments. Aegon is exposed to credit risk on its general account fixed-income portfolio (debt securities, mortgages, small and medium sized entities (‘SME’) and consumer loans and private placements),
In addition, Aegon is indirectly exposed to credit risk on the investment portfolios underlying separate account liabilities. Changes to credit risk can decrease the value of fixed interest assets in the separate accounts. Reduced separate account values will decrease fee income and may accelerate DPAC amortization. In addition, certain separate account products sold in the United States and the Netherlands include guarantees that protect the policyholders against some or all of the downside risks in their separate account portfolios. ReconsiderationRevision of assumptions might also affect the DPAC amortization schedule. These factors may have a material adverse effect on Aegon’s profitability and financial position.
Aegon’s investment portfolio includes Dutchholds government bonds, including US Treasury, agency and state bonds, other government-issued securities and corporate bonds. Especially in a weak economic environment Aegon may incur significant investment impairments due to defaults and overall declines in the capital markets. Defaults or other reductions in the value of these securities and loans may have a material adverse effect on Aegon’s businesses, profitability, cash flows and financial condition.
416 | Annual Report on Form 20-F 20212023
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A decline in equity markets may adversely affect Aegon’s profitability and shareholders’ equity, sales of savings and investment products, and the value of assets under management.
Aegon and its customers run the risk that the market value of their equity investments can decline. Exposure to equity markets exists in both assets and liabilities. Asset exposure exists through direct equity investment where Aegon bears all or most of the volatility in returns and investment performance risk. Equity market exposure is also present in policyholders’ accounts for insurance and investment contracts (such as variable annuities, unit-linked products, and mutual funds) where funds are invested in equities. Although most of the risk remains with the policyholder, guarantees within certain products may transfer some or all of this risk to Aegon. Lower investment returns also reduce the asset management and administration fee that Aegon earns on the asset balance in these products, and prolonged investment under-performance may cause existing customers to withdraw funds and potential customers not to grant investment mandates.
Some of Aegon’s insurance and investment contract businesses have minimum return or accumulation guarantees, which require Aegon to establish reserves to fund these future guaranteed benefits when equity market returns do not meet or exceed these guarantee levels. Aegon’s reported results under IFRS are also at riskimpacted if returns are not sufficient to allow amortization of DPAC,certain insurance and/ or investments contracts become onerous which may impactdecreases the reported net result as well as shareholders’ equity.result. Volatile or poor market conditions may also significantly reduce the demand for some of Aegon’s savings and investment products, which may lead to lower sales and
reduced profitability.
A downturn in the real estate market may adversely impact valuations and cash flows.
Aegon has a largeexposure to the real estate market in the United States through commercial mortgage loans. Aegon also has an indirect exposure to the residential real estate market in the Netherlands through the residential mortgages sourced by Aegon andits shareholding in a.s.r, via the AMVEST funds. Aegon also has exposure to the real estate market in the US through commercial mortgage loans.funds and residential mortgages. Risks for Aegon in the USUnited States and indirectly in the Netherlands in the event of a downturn in the real estate market include lower returns or valuation losses on its mortgage portfolio, lower real estate valuations, lower margins due to higher prepayment in the mortgage portfolio in the event of lower interest rates and increased payment defaults.
The default of a major financial market participant and systemic risk may disrupt the markets and affect Aegon.
The failure of a sufficiently large and influential financial market participant may disrupt securities markets or clearing and settlement systems in Aegon’s markets. This may cause market declines or volatility. Such a failure may lead to a chain of defaults that may adversely affect Aegon and Aegon’s contract counterparties. In addition, such a failure may impact future product sales as a potential result of reduced confidence in the insurance industry. The default of one or more large international financial institutions, which may result in disruption or termination of their cash, custodial and/or administrative services, may also have a material adverse impact on Aegon’s ability to run effective treasury and asset management operations.
Even the perceived lack of creditworthiness of a government or financial institution (or a default by any such entity) may lead to market-wide liquidity problems and losses or defaults. This risk is sometimes referred to as ‘systemic risk’ and may adversely affect financial intermediaries, such as clearing members or futures commissions merchants, clearing houses, banks, securities firms and exchanges with which Aegon interacts on a daily basis and financial instruments of governments in which Aegon invests. Systemic risk could have a material adverse effect on Aegon’s ability to raise new funds and on its business, financial condition, profitability, liquidity and/or prospects.
Reinsurers to which Aegon has ceded risk may fail to meet their obligations.
Aegon’s insurance subsidiaries cede premiums to other insurers under various agreements that cover individual risks, group risks or defined blocks of business, on a
Annual Report on Form 20-F 2023 | 417 |
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A downgrade in Aegon’s credit ratings may increase policy surrenders and withdrawals, adversely affect Aegon’s relationships with distributors, and negatively affect Aegon’s results of operations.
Claims-paying ability and financial strength ratings are factors in establishing the competitive position of insurers. A rating downgrade (or a change in outlook indicating the potential for such a downgrade) of Aegon or any of its rated insurance subsidiaries may, among other things, materially increase the number of policy surrenders and withdrawals by policyholders of cash values from their policies. Aegon cannot predict what actions rating agencies may take, or what actions Aegon may take in response to the actions of rating agencies. As with other companies in the financial services industry, Aegon’s credit ratings may be downgraded at any time and without notice by any rating agency.
Withdrawals by policyholders may require the sale of invested assets, including illiquid assets, at a price that may result in realized investment losses. These cash payments to policyholders would result in a decrease in total invested assets and a decrease in net result. Among other things, early withdrawals may also cause Aegon to accelerate amortization of DPAC, reducingimpact the CSM, which in turn results in lower future CSM releases and as such lower future net result.
Aegon has experienced downgrades and negative changes to its outlook in the past and may experience rating and outlook changes in the future. A downgrade or potential downgrade, including changes in outlook, may result in higher funding costs on future long-term debt funding transactions and/or affect the availability of funding in the capital markets and lead to increased fees on credit facilities. In addition, a downgrade may adversely affect relationships with broker-dealers, banks, agents, wholesalers and other distributors of Aegon’s products and services, which may negatively impact new sales and adversely affect Aegon’s ability to compete. A downgrade of Aegon’s credit ratings may also affect its ability to obtain reinsurance contracts at reasonable prices or at all.
See the “Capital and liquidity management” section for Aegon’s current credit ratings.
Fluctuations in currency exchange rates may affect Aegon’s financial condition and reported results of operations.
As an international group, Aegon is subject to foreign currency translation risk. Foreign currency exposure also exists when policies are denominated in currencies other than Aegon’s functional currency. Currency risk in the investment portfolios backing insurance and investment liabilities is managed using asset liability matching principles. AssetsAt a local level, assets allocated to equity are kept in local currencies to the extent shareholders’ equity is required to satisfy regulatory and Aegon’s self-imposed capital requirements. Therefore, currency exchange rate fluctuations may affect the level of Aegon’s consolidated shareholders’ equity as a result of translation of the equity of Aegon’s subsidiaries into euro, Aegon’s reporting currency. Aegon holds the remainder of its consolidated capital base (capital securities, subordinated and senior debt) in various currencies in amounts that are targeted to correspond to the book value of Aegon’s business units. This balancing is intended to mitigate currency translation impacts on equity and leverage ratios. Foreign currency exposure also exists when policies are denominated in currencies other than Aegon’s functional currency. Currency risk in the investment portfolios backing insurance and investment liabilities is managed using asset liability matching principles. Aegon may also hedge proceeds from divestments or the foreign exchange component of expected dividends from its principal business units that maintain their equity in currencies other than the euro.
To the extent the foreign exchange component of proceeds from divestments or the expected dividends is not hedged, or actual dividends vary from expected, Aegon’s net result and shareholders’ equity may fluctuate. As Aegon has significant business segments in the Americas and in the United Kingdom, the principal sources of exposure from currency fluctuations are from the differences between the US dollar and the euro and between the UK pound and the euro. Aegon may experience significant changes in net result and shareholders’ equity because of these fluctuations.
Aegon may be unable to manage asset liability management risks successfully through derivatives.
Aegon is exposed to changes in the fair value of its investments, as a result of the impact of interest rate, equity markets and credit spread changes, currency fluctuations and changes in mortality and longevity. Aegon uses common financial derivative instruments, such as swaps, options, futures, and forward contracts, to hedge some of the exposures related to both investments backing insurance products and Companyits own borrowings. Aegon may not be able to manage these asset liability management risks associated with these activities successfully through the use of derivatives. In addition, a counterparty may fail to honor the terms of its derivatives contracts with Aegon. ClearingIn addition clearing members and clearing houses may terminate their derivatives contracts with Aegon. Aegon’s inability to manage risks successfully through derivatives, a counterparty’s failure to honor Aegon’s obligations or a systemic risk that is transmitted from counterparty to counterparty may each have a material adverse effect on Aegon’s businesses, net result and financial condition.
418 | Annual Report on Form 20-F 2023
Risk factors Aegon Ltd. | ||||
Valuation of Aegon’s investments, allowances and impairments is subjective, and discrepant valuations may adversely affect Aegon’s net result and financial condition.
The valuation of many of Aegon’s financial instruments is based on subjective methodologies, estimations, and assumptions that are subject to different interpretations.assumptions. Changes to investment valuations may have a material adverse effect on Aegon’s net result and financial
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Underwriting risks
Aegon’s reported results of operations and financial condition may be affected by differences between actual claims experience and underwriting and reserve assumptions both due to incurred gains/losses and from potential changes in best estimate assumptions that are used to value insurance liabilities.
There is a risk that the pricing of Aegon’s products turns out to be inadequate if the assumptions used for pricing do not materialize. Aegon’s earnings depend significantly on the extent to which actual claims experience is consistent with the assumptions used in setting the prices for Aegon’s products and the extent to which the established technical provisions for insurance liabilities, both under IFRS and Solvency IIstatutory reporting, prove to be sufficient. If actual claims experience is less favorable than the underlying assumptions used in establishing such liabilities, Aegon’s net incomeresult would be reduced. Furthermore, if less favorable claims experience became sustained, Aegon may be required to change its best estimate assumptions with respect to future experience, potentially increasing the technical provisions for insurance liabilities, which may reduce Aegon’s net incomeresult and solvency ratio. In addition, certain acquisition costs relatedunder IFRS17 the Contractual Service Margin (“CSM”), established on transition or when writing new business represents the unearned profit that the company expects to earn in the sale of new policies and the purchase of policies already in force have been recorded as assets on the balance sheet and are being amortized into net income over time.future. If the assumptions relating to thethis future profitability of these policies (such as future claims, investment net income and expenses) are not realized, this can lead to changes in the amortization of these costs may be acceleratedCSM, which in turn could change future profitability and may require write-offs should there beif the CSM turns negative trigger onerous contracts leading to an expectation that the costs are not fully recoverable.immediate loss. This may have a material adverse effect on Aegon’s results of operations and financial condition.
Sources of underwriting risk include policyholder behavior (such as lapses or surrender of policies), policy claims (such as mortality and morbidity) and expenses. In most cases, the expectations for these risks are used to calculate the technical provisions so the main risk is that the realizations turn out different than what was expected. For some product lines, Aegon is at risk if policy lapses increase, as sometimes Aegon is unable to fully recover
Losses on Form 20-F 2021
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Some products, particularly Aegon’s variable annuity products in the US and defined benefit pension business in the Netherlands,United States include death benefit guarantees, guarantees of minimum surrender values or income streams for stated periods or for life, which maybe more than account values. These guarantees are designed, among other things, to protect policyholders against downturns in equity markets and interest rates. The value of the guarantees depends on market prices of such products. Failure to re-price the products following a fall in interest rates or a move into more volatile markets could result in Aegon writing business at a loss and potentiallywriting higher volumes of loss making business if competitors re-price their products. Alternatively, if competitors re-price their productson aggressive pricing terms, then Aegon may be pressured to re-price with less favorable terms than it is willing to take without the pressure.
Restrictions on underwriting criteria and the use of data may adversely impact Aegon’s results of operations.
Some jurisdictions impose restrictions on particular underwriting criteria, such as gender or race, or use of genetic test results, for determination of premiums and benefits of insurance products. Such restrictions, now or in the future, could adversely impact Aegon’s results of operations if it is unable to take into consideration some or all factors that potentially bear correlation
Annual Report on Form 20-F 2023 | 419 |
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with risk. Further developments in underwriting, such as automation and use of additional types and sources of data, may also be affected by future regulatory developments regarding privacy and other restrictions with respect to the use of personal data.
Aegon’s products may not achieve expected returns and Aegon may be confronted with litigation and negative publicity.
Aegon may face lawsuits from customers and experience negative publicity if Aegon’s products fail to perform as expected, regardless of the suitability of products for customers or the adequacy of the disclosure provided to customers by Aegon and by the intermediaries who distribute Aegon’s products. Products that are less well understood and that have a lower performance track record may be more likely to be the subject of such lawsuits. Any such lawsuits, court judgments and regulatory fines may have a material adverse effect on Aegon’s results of operations, corporate reputation, and financial condition.
Reinsurance may not be available, affordable, or adequate to protect Aegon against losses.
As part of Aegon’s overall risk and capital management strategy, Aegon purchases reinsurance for certain risks underwritten by Aegon’s various business segments. Market conditions beyond Aegon’s control determine the availability and cost of the reinsurance protection Aegon purchases. In addition, interpretations of terms and conditions may differ over time from anticipated coverage as contracts extend for decades, which may lead to denials of coverage and potentially protracted litigation, which may lead to Aegon incurring losses.
Catastrophic events, which are unpredictable by nature, may result in material losses and abruptly and significantly interrupt Aegon’s business activities.
Aegon’s results of operations and financial condition may be adversely affected by volatile natural and
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Operational risks
Competitive factors may adversely affect Aegon’s market share and profitability.
Competition in Aegon’s business segments is based on, among other things, service, product features, price, commission structure, financial strength, claims paying ability, ratings, and name recognition. Aegon faces intense competition from a large number of other insurers, as well as
Adverse market and economic conditions can be expected to result in changes to the competitive landscape. Financial distress experienced by financial services industry participants as a result of weak economic conditions and newly imposed regulations may lead to acquisition opportunities. Additionally,In addition, the competitive landscape in which Aegon operates may
420 | Annual Report on Form 20-F 2023
Risk factors Aegon Ltd. | ||||
be affected by government-sponsored programs or actions taken in response to, for instance, dislocations in financial markets. Aegon’s ability or that of Aegon’s competitors to pursue such opportunities may be limited due to lower earnings, reserve increases, capital requirements or a lack of access to debt capital markets and other sources of financing. Such conditions may also lead to changes by Aegon or Aegon’s competitors in product offerings and product pricing that may affect Aegon and Aegon’s relative sales volumes, market shares and profitability.
Aegon may have difficulty managing its expanding operations, and Aegon may not be successful in acquiring new businesses or divesting existing operations.
Over time, Aegon has made a number of acquisitions and divestments around the world and it is possible that Aegon may make further acquisitions and divestments in the future. Acquisitions and divestments involve risks that may adversely affect Aegon’s results of operations and financial condition. These include: the potential diversion of financial and management resources from existing operations; difficulties in assimilating or disentangling operations, technologies, products and personnel; significant delays in completing the integration or disentangling of operations; the potential loss of key employees or customers; and potential losses from unanticipatedresulting litigation and tax and accounting issues. In addition, expansion into new and emerging markets may involve heightened political, legal and regulatory risks, such as discriminatory regulation, nationalization or expropriation of assets, price controls and exchange controls.
Aegon’s acquisitions may result in additional indebtedness, costs, contingent liabilities, and impairment expenses related to goodwill and other intangible assets. Acquisitions may also have a dilutive effect on the ownership and voting percentages of existing shareholders if shares are used as consideration. Divestments of existing operations may result in Aegon assuming or retaining certain contingent liabilities. Aegon may not be able to divest assets within the time or at the price planned. Certain assets may prove to be organized within the business in such a way as to make divestment too complex and/or uneconomical. All of these factors may adversely affect Aegon’s businesses, results of operations and financial condition. There can be no assurance that Aegon will successfully identify suitable acquisition candidates or buyers for operations to be divested or that Aegon will properly value acquisitions or divestments. Aegon is unable to predict whether or when any prospective acquisition candidate or buyer for operations to be divested will become available, or the likelihood that any transaction will be completed once negotiations have commenced.
Aegon may experience difficulties in distributing and marketing products through its current and future distribution channels.
Although Aegon distributes its products through a wide variety of distribution channels, Aegon’s ability to market its products could be affected if key relationships are interrupted. Distributors may elect to reduce or terminate their distribution relationship with Aegon due to adverse developments in its (or their) business. Further, key distribution partners may also merge or change their business models in ways that affect how Aegon’s products are sold, or new distribution channels could emerge and adversely impact the effectiveness of its current distribution efforts.
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When Aegon’s products are distributed through unaffiliated firms, Aegon may not always be able to monitor or control the manner of their distribution despite its significant compliance training and programs. If Aegon’s products are distributed by such firms in an inappropriate manner, or to customers for whom they are unsuitable, Aegon may suffer reputational and other harm to its business.
Aegon may be unable to adapt to and apply new technologies.
New technologies are transforming the insurance industry. New technologies include but are not limited to communication channels, automation, artificial intelligence and machine learning, additional processing platforms and cloud services, data analytics and distributed ledger technology. These technologies are changing the way insurance is distributed and sold. They are also changing the way insurers manage their businesses and the skills they need in their workforces. Furthermore, the new technologies are influencing customer and consumer demands. Technology makes it easier to move into new markets. This increases competition, not just among peers, but also from new competitors and disruptors. An inability to adapt and apply these technologies quickly, and in a controlled manner may impact Aegon’s competitive position, and its ability to maintain profitability, and may adversely affect Aegon’s future financial condition and results of operations.
Failure of data management and governance can result in regulatory and reputational risk as well as missed business opportunities.
Data is essential for Aegon’s operational performance. However, much of the data held by Aegon is subject to various legal, regulatory and contractual restrictions. To be able to benefit from the data that Aegon holds, areas like data management and governance are of key importance. Most internal processes and customer interactions are dependent on accessible, reliable,
Annual Report on Form 20-F 2023 | 421 |
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and compliant data practices and operations. If Aegon fails to adequately execute on these obligations, it faces potential legal, regulatory, contractual and reputational risks. Aegon also must endeavor to obtain adequate data rights to be able to execute its business strategy. Failure to do so will expose it to additional legal risks, including litigation risks.
Aegon may be impacted by epidemics or pandemics.
Aegon’s operations are exposed to the risk of an epidemic or a pandemic – such as Asian flu, SARs or
Aegon may not be successful in managing its exposure to sustainability and climate risk and adequately adapting its investment portfolios for the transition to a
Climate change is a long-term risk associated with high uncertainty regarding timing, scope and severity of potential impacts. Climate risks can be grouped into physical risks and transition risks. Physical risks relate to losses from overall climate changes (i.e. changing weather patterns and sea level rise) and acute climate events (i.e. extreme weather and natural disasters). These physical risks not only impact property & casualty (P&C) insurance through increased claims, but also potentially life insurance, for instance through higher-than-expected mortality rates. Losses can also follow from credit risk and collateral linked to Aegon’s mortgage portfolio. From a physical risk standpoint, Aegon is exposed to mortality risk and mortgage underwriting risks. Beyond insured losses, climate change may have disrupting and cascading effects on the wider environment and economy and may lead to adverse market movements – prices and credit quality of investments and defaults on investments – and monetary policy measures resulting in lower interest rates.
Transition risks are those arising from the shift to a
standards and requirements, or may fail to meet its sustainability and ESG-related goals and targets.”
Physical and transition risks may impact our investment performance, as well as our business operations. For more information, please see our disclosures in the section titled “Task Force on Climate-related Financial Disclosures. Linked to both the physical and the transition risks, there could also be litigation and reputational risks following from (being perceived to) not fully considering or responding to the impacts of climate change, or not providing appropriate disclosure of current and future risks.risks, or not meeting Aegon’s fiduciary duties. Aegon may not
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Given the significant uncertainties related to climate change impacts and its long-term nature, it cannot be ruled out that climate change may have a materialan adverse effect on Aegon’s businesses, results of operations and financial condition.
Aegon’s risk management policies and processes may leave it exposed to unidentified or unanticipated risk events, adversely affecting its businesses, results of operations, and financial condition.
Aegon has devoted significant resources to the implementation and maintenance of a comprehensive enterprise risk management framework in all aspects of the business.framework. Nevertheless, it is possible that risks present in its business strategies and initiatives are not fully identified, monitored, and managed or that risks are not properly measured. Risk measurements often make use of historic and public data that may be inaccurate or may not predict future exposures. As a result, Aegon’s businesses, results of operations, and financial condition may be adversely affected.
422 | Annual Report on Form 20-F 2023
Risk factors Aegon Ltd. | ||||
Failure of Aegon’s information technology or communications systems may result in a material adverse effect on Aegon’s businesses, results of operations, financial condition and corporate reputation.
Any failure of or gap in the systems and processes necessary to support complex transactionsbusiness operations and avoid and/or detect systems failure, fraud, information security failures, processing errors, cyber intrusion, loss of data and breaches of regulation may lead to a material adverse effect on Aegon’s results of operations and corporate reputation. In addition, Aegon must commit significant resources to maintain and enhance its existing systems in order to keep pace with applicable regulatory requirements, industry standards and customer preferences. If Aegon fails to maintain secure, compliant and well-functioning information systems, Aegon may not be able to rely on data for product pricing, compliance obligations, risk management and underwriting decisions. In addition, Aegon cannot assure investors or consumers that interruptions, failures or breaches in security of these processes and systems will not occur, or that if they do occur, that they can be timely detected and remediated. The occurrence of any of these events may have a material adverse effect on Aegon’s businesses, results of operations, financial condition and corporate reputation.
A perceived or actual computer system failure or security breach of
Aegon relies heavily on its own computer and information systems and internet and network connectivity as well as those of third parties (collectively, “IT systems”) to conduct a large portion of its business operations. This includes the need to securely store, process, transmit and dispose of confidential information, including personal information through a number of complex systems.and confidental company information as well as trade secrets, financial and other confidental information relating to Aegon. In many cases this also includes transmission and processing to or through customers, business partners, (semi-) governmental agencies and third-party service providers.
The information security risk that Aegon faces includes the risk of malicious outside forces using public networks and other methods, including social engineering, ransomware and the exploitation of targeted offline processes, to attack Aegon’s IT systems and information, making it inaccessible to its intended users and potentially demanddemanding ransom. It also includes inside threats, both malicious and accidental. For example, human error, bugs and vulnerabilities that may exist in
In recent years, information security risk has increased sharply due to a number of developments in how information systems are used, not only by companies such as Aegon, but also by society in general. Threats have increased in frequency and magnitude, and are expected to continue to increase, as criminals and other bad actors become more organized and employ more sophisticated techniques. At the same time companies increasingly make information systems and data available through the internet, mobile devices or other network connections to customers, employees and business partners, thereby expanding the attack surface that bad actors can potentially exploit. As a result of the
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The White House, SEC and other regulators have also increased their focus on cybersecurity vulnerabilities and risks.
Large, global financial institutions such as Aegon, and including Aegontheir third-party service providers, have been, and will continue to be, subject to information security attacks for the foreseeable future. The nature of these attacks will also continue to be unpredictable, and in many cases may arise from circumstances or at third parties that are beyond Aegon’s control. Attackers are also increasingly using tools (including artificial intelligence) and techniques that are specifically designed to circumvent
Annual Report on Form 20-F 2023 | 423 |
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controls, to evade detection and even to remove or obfuscate forensic evidence. As a result, Aegon may be unable to timely or effectively detect, identify, contain, investigate or remediate IT systems in response to future cyberattacks or security breaches. Especially if and to the extent Aegon fails to adequately invest in defensive infrastructure, timely response capabilities, technology, controls and processes or to effectively execute against its information security strategy, it may suffer material adverse consequences.
To date the highest impact information security incidents that Aegon has experienced are believed to have been the result of
Aegon maintains cyber liability insurance to help decrease the financial impact of cyber-attacks and information security events, subject to the terms and conditions of the policy; however,policy. However, such insurance may not be sufficient to cover all applicable losses that Aegon may suffer.
A perceived or actual breach of data privacy or security obligations may disrupt Aegon’s business, damage Aegon’s reputation and adversely affect financial conditions and results of operations.
Pursuant to applicable laws, various government and semi-governmental and other administrative bodies have established numerous rules protecting the privacy and security of personal information and other confidential or sensitive information held by Aegon. Notably, certain of Aegon’s businesses are subject to laws and regulations enacted by US federal and state governments, the EU, orthe UK and other
In the United States, the New York Department of Finance Services (NYDFS), pursuant to its cybersecurity regulation, requires financial institutions regulated by the NYDFS, including certain Aegon subsidiaries, to, among other things, satisfy an extensive set of minimum information security requirements, including but not limited to governance, management, reporting, policy, technology and control requirements. Other states have adopted similar, but not as stringent, cybersecurity laws and regulations.
Numerous other US state and federal laws also impose various information security and privacy related obligations with respect to various Aegon subsidiaries operating in the US,United States, including but not limited to the Gramm-Leach-Bliley Act and related state laws and implementing regulations (GLBA), the California Consumer Privacy Act (CCPA), as amended by the California Privacy Rights Act (CPRA), and the Health Insurance Portability and Accountability Act (HIPAA), among many others. These laws generally provide for governmental investigative and enforcement authority, and in certain cases provide for private rights of action.
Numerous other legislators and regulators with jurisdiction over
Aegon, and numerous of its systems, employees, third-party providers and business partners have access to, and routinely process, the personal information of consumers and employees. Aegon relies on a large number of processes and controls to protect
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424 | Annual Report on Form 20-F 2023
Risk factors Aegon Ltd. | ||||
or a third party’s employee, contractor, business partner or system could, intentionally or unintentionally, inappropriately disclose or misuse personal or confidential information. Aegon’s data or data in its possession could also be the subject of an unauthorized information security attack. If Aegon fails to maintain adequate processes and controls or if Aegon or its business partners fail to comply with relevant laws and regulations, policies and procedures, misappropriation or intentional or unintentional inappropriate disclosure or misuse of personal information or other confidential information could occur. Such control inadequacies or
In addition, Aegon analyzes personal information and customer data to better manage its business, subject to applicable laws and regulations and other restrictions. It is possible that additional regulatory or other restrictions regarding the use of such information may be imposed. Additional privacy and information security obligations have been imposed by various governments with jurisdiction over Aegon or its subsidiaries in recent years, and more similar obligations are likely to be imposed in the near future across Aegon’s operations.future. Such restrictions and obligations, as well as the actual or perceived failure to comply with them, could have material impacts on Aegon’s business, financial conditions and results of operations.
Inaccuracies in econometric, financial, or actuarial models, or differing interpretations of underlying methodologies, assumptions and estimates, could have a material adverse effect on Aegon’s business, results of operations and financial condition.
Aegon uses econometric, financial, and actuarial models to measure and manage multiple types of risk, to price products and to establish and assess key valuations and report financial results. All these functions are critical to Aegon’s operations. Aegon has a model risk management framework in place to manage modellingmodeling risk. If, despite this framework, models, their underlying methodologies, assumptions and estimates, or their implementation and monitoring prove to be inaccurate, this could have a material adverse effect on Aegon’s business, results of operations and financial condition.
Many of Aegon’s business units offer investment products that utilize quantitative models, algorithms or calculations that could experience errors or prove to be incorrect, incomplete or unsuccessful, resulting in losses for clients who have invested in such products and possible regulatory actions and/or litigation against Aegon and/or its affiliates.
Aegon’s business units may utilize quantitative models, algorithms or calculations (whether proprietary or supplied by third parties) (Models) or information, or data supplied by third parties (Data) for the management of, or to assist in the management of, investment products offered to clients. Examples of such investment products include volatility-controlled funds, mutual funds, separately managed accounts, and other types of advisory accounts. Models and Data are used to construct sets of transactions and investments, to provide risk management insights, and may be used to assist in hedging investments. If Models and Data prove to be incorrect or incomplete, any decisions made, in whole or part, in reliance thereon expose the investment product to additional risks. For example, by utilizing Models or Data, certain investments may be bought at prices that are too high, certain other investments may be sold at prices that are too low, or favorable opportunities may be missed altogether. Similarly, any hedging based on faulty Models and Data may prove to be unsuccessful. The applicable investment product bears the risk that Models or Data used will not be successful and the product may not achieve its investment objective.
Models can be predictive in nature. The use of predictive Models has inherent risks. For example, such Models may incorrectly forecast future behavior, leading to potential losses on a cash flow and/or a
Models rely on, among other things, correct and complete Data inputs. If incorrect Data is entered into even a well-founded Model, the resulting information will be incorrect. However, even if Data is input correctly, Model prices may differ substantially from market prices, especially for securities with complex characteristics. Investments selected with the use of Models may perform differently than expected as a result of the design of the Model, inputs into the Model or other factors.
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In addition, if investment products offered by Aegon’s affiliates experience Model errors or use erroneous Data, this could result in regulatory actions and/or litigation brought against Aegon and/or its affiliates.
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Issues with third party providers (outsourcing partners and suppliers), including events such as bankruptcy, disruption of services, poor performance, non-performance,or standards of service level agreements not upheld may adversely impact Aegon’s operational effectiveness and financial condition.
As Aegon continues to focus on reducing expenses necessary to support its business, a key part of its operating strategy has been to outsource certain services that are important to its business. Aegon outsources certain information technology, business processes, finance and actuarial services, investment management services and policy administration operations to third party providers and may do so increasingly in the future. If Aegon fails to maintain an effective outsourcing strategy or if third party providers do not provide the core administrative, operational, financial, and actuarial services Aegon requires and anticipates, or perform as contracted, such as compliance with applicable laws and regulations, or suffer an information security or data privacy breach, Aegon may not realize the desired productivityoperational improvements, or cost efficiencies or customers might experience lower service levels. In addition, Aegon may not be able to find an adequate alternative service provider, and instead experience financial loss, reputational harm, operational difficulties, increased costs, a loss of business and other negative consequences all of whichpotentially impacting policy holders/customers. This could have a material adverse effect on Aegon’s financial condition. In addition, Aegon’s reliance on third party providers does not relieve Aegon of its responsibilities and requirements.requirements toward its policy holders/customers. Any failure or negligence by such third-party providers in carrying out their contractual duties may result in Aegon being subjected to liability and litigation. Any litigation relating to such matters could be costly and time-consuming, and the outcome would be uncertain. Moreover, any adverse publicity arising from such litigation, even if the litigation is not successful, could adversely affect Aegon’s reputation and distribution of its products. Finally, Aegon’s ability to receive services from third party providers based in different countries might be impacted by political instability, cultural differences, regulatory requirements or policies inside or outside of the countries within which Aegon has operations. As a result, Aegon’s ability to conduct its business might be adversely affected.
Aegon may be unable to attract and retain personnel who are key to the business.
As a global financial services enterprise, Aegon relies, to a considerable extent, on the quality of local management and personnel in the various countries in which Aegon operates. The success of Aegon’s operations is dependent, among other things, on Aegon’s ability to attract and retain highly qualified professional personnel. The right talent for critical positions and availability of required capabilities determines Aegon���sAegon’s ability to deliver on its strategic objectives. Competition for key personnel in most countries in which Aegon operates is intense. Aegon competes for talent in areas such as digital, information technology, with companies in the consumer products, technology, financial sectors. Aegon’s success attracting and retaining key personnel is very much dependent on the competitiveness of the compensation and benefits package and flexibility for employees in the market in which it competes and the work environment it offers.
In addition, Aegon may pursue acquisitions, divestitures, and other strategic initiatives from time to a certain extent, the United Statestime, and such initiatives may disrupt Aegon’s business, impact its morale and ability to the financial crisis in 2008, there have been various legislativepreserve its culture, and negatively affect its ability to attract and retain personnel. Such initiatives that have soughtcan also make it more difficult for Aegon to give guidance or regulate the structure of remuneration for personnel, in particularattract, retain and motivate senior management with a focus on performance-related remuneration and limiting severance payments. With differences in interpretation of these regulations by local regulators on how the guidelines need to be applied these restrictions create an uncertain playing fieldemployees, and may adversely affectachieve Aegon’s ability to compete for qualified employees, as well as Aegon’s ability to transfer employees between regions.
Political, Regulatory and Supervisory
Aegon may be required to increase its technical provisions and/or hold higher amounts of regulatory capital as a result of changes in the regulatory environment or changes in rating agency analysis,analyses, which may impact Aegon’s financial condition and/or decrease Aegon’s returns on its products.
Prudential regulatory requirements such as requirements with respect to the calculation of technical provisions, capital requirements, the eligibility of own funds and the regulatory treatment of investments may change, whichchange. Such changes could require Aegon to increase technical provisions, hold higher amounts of regulatory capital and subject it to more stringent requirements with respect to investments and/or own funds. Important examples include changes to applicable capital requirements by the BMA, as group supervisor, or European Union and/or the interpretation thereof by the European Insurance and Occupational Pensions Authority (‘EIOPA’(“EIOPA”), the National Association of Insurance Commissioners (‘NAIC’(“NAIC”) in the USUnited States or US state regulators, Prudential Regulatory Authority (‘PRA’), the Bermuda Monetary Authority (‘BMA’) in Bermuda, or other local regulators in jurisdictions in which Aegon operates. Aegon cannot predict specific proposals that might be adopted, or what impact, if any, such proposals or, if enacted, such laws may have on its businesses, results of operations, or financial condition.
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Prudential regulatory requirements mayapply not only apply to the individual entities in the Aegon Groupgroup but may additionally apply at Groupgroup level or apply to part of the Group.Aegon group. Consequently, those requirements may have different, and more or less impact depending on their scope. Important examples of such requirements are Solvency II group supervision and consolidated requirements resulting from the Capital Requirements Directive (‘CRD’) and the Capital Requirements Regulation (‘CRR’), as applied to groups containing bank and/ or asset management activities.
426 | Annual Report on Form 20-F 2023
Risk factors Aegon Ltd. | ||||
The way such requirements are applied to groups like Aegon has an impact on the Group’sAegon group’s capital position, as well as on the availability of capital at a Groupgroup level. Changes to prudential regulatory requirements may have an impact on Aegon’s competitive position versus companies that are not subject to these or similar requirements at Groupgroup level. As an example, as part ofAegon’s group solvency ratio and surplus under the Bermuda solvency framework will be broadly in line with that under the Solvency II Regime during a transition period until the end of 2027. This includes the method to translate Transamerica’s capital position into the group calculation, Aegon applies a specific methodology for its US insurance and reinsurance subsidiaries at Group level, in addition to the requirements to which these subsidiaries are subject under their local prudential regime. This methodology is approved by Aegon’s group supervisor, De Nederlandsche Bank N.V. (‘DNB’), but remains subject to periodic review.solvency position. Changes to this methodology might have an impact on Aegon’s capital position, as calculated under Solvency II group requirements and/or the manner in which DNB otherwise exercises group supervision on Aegon, for example through more stringent requirements with respect to intra-group transactions, risk concentrations and reporting.
There are several important regulatory standards with respect to capital adequacy that apply to Aegon and are subject to change, which changes could impact Aegon’s financial condition results and operations:
Following the end of the Brexit transition period on December 31, |
In addition to requirements imposed by regulatory and/or supervisory authorities, rating agencies may incorporate higher capital thresholds into their quantitative analyses, thus requiring additional capital for Aegon GroupLtd. and/or its regulated subsidiaries to maintain their desired credit ratings.
The application of these capital standards and changes thereto could adversely affect Aegon’s ability to compete with other insurers that are not subject to those capital requirements. These requirements may also lead Aegon to engage in transactions that affect capital and constrain Aegon’s ability to pay dividends or repurchase its own shares. Furthermore, such requirements may constrain Aegon’s ability to provide guarantees and may increase the cost to Aegon of offering certain products, resulting in price increases, discontinuance of offering of certain products or reducing the amount of risk Aegon takes on. Aegon may also consider structural and other business alternatives in light of requirements or standards applicable with respect to systemic entities or activities associated with systemic risk. The impact of which the impactthese alternatives on shareholders cannot be predicted. For further detail on developments in these areas, reference is made tosee the section ‘Regulation“Regulation and supervision’supervision” section of Aegon’s Annual Report 2021.
Political or other instability in aan impacted country or geographic region, could adversely affect Aegon’s international business activities and it’s financial condition.
Political developments such as, foreign investment restrictions, civil unrest, geopolitical tensions, or military action (e.g. the Russia - Ukraine war, and Israel - Hamas war), and new or evolving legal and regulatory requirements on business investment, hiring, migration, and global supply chains could have an adverse effect on Aegon’sAegon businesses, results of operations, financial condition and liquidity in many ways, including disruption to ourits business operations
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Changes in accounting standards may affect Aegon’s reported results of operations and shareholders’ equity.
Annual Report on Form 20-F 2023 | 427 |
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Further detail on the impact from both the accounting standards that are likely to have a significant impact on Aegon’s reported results, financial condition and shareholders’ equity include, but are not limited to, IFRS 9 – Financial Instruments and IFRS 17 – Insurance Contracts.
Local statutes, regulators, and decisions of supervisory and other authorities may limit the ability of Aegon’s subsidiaries and participations to pay dividends to Aegon N.V.Ltd., thereby limiting Aegon’s ability to make payments on debt obligations and operating expenses.
Aegon’s ability to make payments on debt obligations and pay operating expenses is dependent upon the receipt of dividends from subsidiaries and participations, in particular, but not limited to the operating companies in the US,United States, the Netherlands, and the UK. MostUnited Kingdom. Many of these subsidiariesentities are subject to regulatory restrictions that can limit the payment of dividends. In addition, local regulators in the countries where Aegon operates, supervisory authorities and other authorities (such as the BMA, EIOPA or the European Systemic Risk Board) may decide to impose or advise on further restrictions to dividend payments, or discourage such payments, specifically in exceptional and unpredictable economic circumstances. This may affect Aegon’s ability to satisfy its debt obligations or pay its operating expenses.
Risks of application of intervention measures may adversely affect Aegon’s business, results of operations and financial condition.
Bermuda’s Insurance Act 1978 has been amended to give the BMA powers to make rules for recovery planning, and the BMA is finalising requirements for recovery plans. In 2025, the BMA plans to publicly consult on the design and implementation of an insurance resolution regime in line with the standards of the IAIS.
The Dutch Act on Recovery & Resolution for Insurers (‘(“R&R Act’Act”) allows DNB to intervene in situations where a Dutch insurer or reinsurer is faced with financial difficulties. The powers under the R&R Act may also extend to the level of the Groupa group to which a Dutch insurer belongs, and to entities, in addition to insurance or reinsurance entities in the Netherlands, which are part of the Group,that group, such as Aegon N.V.
In addition, the R&R Act allows DNB to require a Dutch insurance or reinsurance company or a group to remove, ex ante, material impediments to effective resolution of a Dutch insurance or reinsurance undertaking (such as the revision of financing arrangements, the reduction of exposures, the transfer of assets, the termination or limitation of business activities, or the prohibition on starting certain business activities, changing the legal or operational structure of the Group,its group, or securing certain critical business lines). The use of this tool by DNB in relation to a.s.r. may adversely affect the value of Aegon’s business, results of operations and financial condition.
In September 2021, the European Commission published a formal proposal for a European Insurance Recovery & Resolution Directive, which will introduce minimum standards at European level for recovery & resolution frameworks in EU member states, such as the Dutch R&R Act. This might lead to the introduction of intervention tools, largely similar to those included in the R&R Act, also in other EU member states in whichSpain and Portugal where Aegon’s insurance subsidiaries and joint ventures are active.
Lastly, when the stability of the financial system is threatened by the condition of a financial institution, such as a.s.r., the Dutch Minister of Finance may intervene immediately, in which case legal or statutory provisions, applicable to the financial institution, might be superseded. The intervention measures available to the Minister of Finance include, in particular, the right to expropriate assets of the financial
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There is a risk that the possible exercise of powers, or any anticipated exercise of powers, by the BMA, DNB or the MinistryDutch Minister of Finance could have a material adverse effect on the performance by the failing institution, including Aegon and a.s.r., of its obligations (of payment or otherwise) under contracts of any form, including the expropriation,
Legal and Compliance
The outcome of legal and arbitration proceedings and regulatory investigations and actions may adversely affect Aegon’s business, results of operations and financial condition.
Aegon faces significant risks of litigation as well as regulatory exams and investigations and actions relating to its and its subsidiaries’ businesses. Aegon is also subject to compliance with regulations applicable to it as a corporate entity.
428 | Annual Report on Form 20-F 2023
Risk factors Aegon Ltd. | ||||
Insurance companies and their affiliated regulated entities are routinely the subject of litigation, investigation and regulatory activity by various governmental and enforcement authorities, individual claimants, and policyholder advocate groups in the jurisdictions in which Aegon does or did business, including the United States, the Netherlands, and the United Kingdom. These actions may involve issues including, but not limited to, employment or distribution relationships; operational and internal controls and processes; investment returns; sales practices; claims payments and practices; transparency and adequacy of product disclosures including regarding initial costs, ongoing costs, and costs due on policy surrender as well as changes to costs over time;costs; environmental and climate change related matters; competition and antitrust matters; data privacy; information security; and intellectual property.
Aegon entities are subject to anti-money laundering laws and regulations, including EU, US and UK laws and regulations, and these require Aegon to develop and implement customer identification and risk-based anti-money laundering programs, report suspicious activity, and maintain certain records. Further, Aegon entities are required to adhere to certain economic and trade sanctions programs, including EU, US, UK, and UN programs, that prohibit or restrict transactions with suspected persons, governments, and in certain circumstances, geographies. Changes in, or violations of, any of these laws or regulations may require additional compliance procedures, or result in enforcement proceedings, sanctions or penalties, which could have a material adverse effect on Aegon’s businesses, financial condition and result of operations.
Aegon entities are subject to anti-bribery legislation in the EU, the US and the UK and other jurisdictions.legislation. Any violations of these or other anti-bribery laws by Aegon, its employees, subsidiaries or local agents, could have a material adverse effect on its businesses and reputation and result in substantial financial penalties or other sanctions.
Government and regulatory investigations may result in the institution of administrative, injunctive, or other proceedings and/or the imposition of monetary fines, penalties and/or disgorgement as well as other remedies, sanctions, damages and restitutionary amounts. Regulators may also seek changes to the way Aegon operates. In some cases, Aegon subsidiaries have modified business practices in response to inquiries.
Customers of certain of Aegon’s products bear significant investment risks with respect to those products which are affected by fluctuations in equity markets as well as interest rate movements. When investment returns disappoint, are volatile, or change due to changes in the market or other relevant conditions, customers may threaten or bring litigation against Aegon.
The existence of potential claims may remain unknown for long periods of time after the events giving rise to such claims. Determining the likelihood of exposure to Aegon and the extent of any such exposure may not be possible for long periods of time after Aegon becomes aware of such potential claims. Litigation exposure as well may develop over long periods of time; once litigation is initiated, it may be protracted and subject to multiple levels of appeal, which can lead to significant costs of defense, distraction, and other constraints.
In some jurisdictions, plaintiffs may seek recovery of very large or indeterminate amounts under enhanced liability legal theories or claims of bad faith, which can result in tort, punitive and/or statutory damages. Damages alleged may not be quantifiable or supportable or may have no relationship to economic losses or final awards. As a result, Aegon cannot predict the effect of litigation, investigations or other actions on its business.
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Separate from financial loss, litigation, regulatory action, legislative changes or changes in public opinion may require Aegon to change its business practices, which could have a material adverse impact on Aegon’s businesses, results of operations, cash flows and financial condition. Disputes and investigations initiated by governmental entities and private parties may lead to orders or settlements, including payments or changes to business practices, even if Aegon believes the underlying claims are without merit.
Several US insurers, including Aegon subsidiaries, have been named in class actions as well as individual litigationslitigation relating to increases in monthly deduction rates (‘’MDR’’)(MDR) on universal life products. Plaintiffs generally allege that the increases were made to recoup past losses rather than to cover the future costs of providing insurance coverage. Aegon’s subsidiary in the USUnited States has settled two such class actions that had been venued in the US District Court for the Central District of California.California federal court. The settlement in the first of these cases, approved in January 2019, arose from increases implemented in 2015 and 2016. Over 99% of affected policyholders participated in that settlement. While less than 1% of policyholders opted out of the settlement, they represented approximately 43% of the value of the settlement fund. 2015-2016.
In thea second case, Aegon’s subsidiary agreed to settle a class action lawsuit arising out of MDR increases in 2017 and 2018. The court approved that settlement onin September 16, 2020. A number of policyholders opted-out of the class settlements, with the settlements funds reduced proportionally. By the end of 2023, all material opt-out lawsuits and disputes from both cases had been resolved, and provisions adjusted accordingly.
Annual Report on Form 20-F 2023 | 429 |
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A third case was filed in October 2022 which relates to MDR increases in 2022 and 2023, that case is venued in Iowa federal court. At this time, Aegon is unable to reliably estimate the potential exposure in this case represent less than 7% of the value of the settlement fund. The settlement fund was reduced proportionally for opt outs. In 2021, settlements were reached with some of the
In addition, insurance companies and their affiliated regulated entities may face lawsuits that threaten their business models. For example, several
There is also an increasing risk of climate-related litigation. For example, plaintiffs have brought litigation against a variety of companies alleging that their actions have contributed to the increase of greenhouse gas emissions and resultant physical climate impacts or judgment.
There can be no assurances that these matters will not ultimately result in a material adverse effect on Aegon’s business, results of operations, competitive position, reputation, and financial condition. For additional information on proceedings in which Aegon
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Changes in government regulations in the jurisdictions in which Aegon operates may affect profitability and operating models.
Aegon’s regulated businesses, such as insurance banking, and asset management, are subject to comprehensive regulation and supervision. The primary purpose of such regulation is to protect clients of these operating companiesregulated businesses (e.g. policyholders), rather than holders of Aegon shares, capital securities and debt instruments. Changes in existing laws and regulations may affect the way in which Aegon conducts its businesses, including its relationship with distributors of its products and other third parties and the structure of its relationship with employees. These changes may evolve over time and be open to interpretation and evolution through judicial and enforcement action. Such changes may also affect the profitability of its businesses and the products it offers. Additionally,In addition, the laws or regulations adopted or amended from time to time may impose greater restrictions on Aegon’s financial flexibility and operations or may result in higher costscosts. Such laws or regulations may relate to operate than currently is the case,topics including but not limited to financial and accounting requirements; information security, data privacy, transfer, storage, and usage requirements; modeling and other actuarial requirements and standards; and investments, reserves, and financial management.
Aegon may not be able to comply fully with, or obtain appropriate exemptions from, the wide variety of laws and regulations applicable to its businesses and legal entities. Failure to comply with or to obtain appropriate exemptions under any applicable laws and regulations may result in restrictions on Aegon’s ability to do business in one or more of the jurisdictions in which Aegon operates and may result in fines and other sanctions, which may have a material adverse effect on Aegon’s businesses, financial condition or results of operations.
Regulatory changes include preventive and corrective supervisory measures that aim to address macro-prudential concerns, referred to in the Holistic Framework for Systemic Risk in the Insurance Sector, as adopted by the IAIS in November 2019 and recently in the European Commission’s proposal to amend the Solvency II Directive in the context of the Solvency II 2020 review, which includes macro-prudential tools, as well as in the European Commissions’ proposal for an Insurance Recovery & Resolution Directive.
The implementation of ComFrame and the holistic framework, as well as other requirements aimed to address macro-prudential or concerns or concerns related to its capacity as internationally active group, may cause Aegon to engage
430 | Annual Report on Form 20-F 2023
Risk factors Aegon Ltd. | ||||
in transactions that affect capital or constrain Aegon’s ability to pay dividends or repurchase its own shares. Furthermore, such requirements may constrain Aegon’s ability to provide guarantees and increase the cost to Aegon of offering certain products resulting in price increases, leading to the discontinuance of offering of certain products or reducing the amount of risk Aegon takes on. Aegon may consider structural and other business alternatives in light of requirements or standards applicable with respect to systemic entities or activities, of which the impact on shareholders cannot be predicted.
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During the transition period to above, the Solvency II 2020 review covers a broad range of topics of the Solvency II framework.Bermuda solvency requirements for Aegon, at Group level is (partly) and Aegon’s EU insurance subsidiaries are, subject to the Solvency II framework. If the European Commission’s Directive proposal is taken over by the European
On June 5, 2019, the SEC adopted Regulation Best Interest (Regulation BI), a new rule requiring broker-dealers and investment advisers to recommend only those financial products to their customers that are in their customers’ best interest, and to clearly identify any potential conflicts of interest and financial incentives the broker-dealer may have in connection with the sale of such products. In addition, sinceOn October 31, 2023, the U.S. Department of Labor (‘DOL’(“DOL”) proposed a regulation titled “Retirement Security Rule: Definition of an Investment Advice Fiduciary” (the “Proposed Fiduciary Rule”) and proposed amendments to several prohibited transaction exemptions. With these proposals, the DOL aims to expand the criteria for determining who would be an “investment advice fiduciary” for purposes of Section 3(21) of the Employee Retirement Income Security Act of 1974, as amended and force many such fiduciaries to comply with Prohibited Transaction Exemption 2020-02 for fee and affiliated investment conflicts. The Proposed Fiduciary Rule, if finalized, would modify the “five-part test” for determining fiduciary status that has been in effect since 1975. The Proposed Fiduciary Rule is the third attempt since 2010 by the DOL to replace the five-part test. The most recent attempt was an updated regulatory definition of investment advice fiduciary issued on April 8, 2016, which was vacated in July 2018, several statesits entirety by the US Court of Appeals for the Fifth Circuit in 2018. The comment period for the Proposed Fiduciary Rule ended on January 2, 2024. The 2023 Proposed Fiduciary Rule has generated considerable controversy and is the subject of industry efforts to advocate for changes to the proposed rule. The success or failure of these efforts cannot be predicted.
If implemented without significant changes, the Proposed Fiduciary Rule could have moved forwarda material adverse impact with developing their own similar rulesregard to Aegon Americas’ retirement plan and proposals, which in some instances substantially broadenannuity businesses, including by increasing the standardcost and administrative burdens with respect to those Aegon entities that provide services to and through IRAs and defined contribution plans. Additionally, implementation of care traditionally owed by broker-dealers and/the rule as proposed could create challenges to the operating model of these businesses. Until a final rule is issued, it is not possible to quantify the impact of the proposal on the Company’s business or insurance agents to their clients. The Biden Administration and the DOL have indicated an interest in revisiting fiduciary-related issues but have not yet made any proposals.
The foregoing regulations and proposed regulations, along with any future regulations by the federal government and/or states that impose new, heightened, conflicting or differing standards of care or restrictions on broker-dealers, insurance agents, or advisers, could have a material impact on annuity sales and, as applicable, life insurance sales.
Changes in pension and employee benefit regulation, social security regulation, financial services regulation, taxation and the regulation of securities products and transactions, and regulation of employee workplace standards may adversely affect Aegon’s ability to sell new
The introduction of
In general, changes in laws and regulations may materially increase Aegon’s direct and indirect compliance costs and other ongoing business expenses and have a material adverse effect on Aegon’s businesses, results of operations or financial condition.
Increased attention to ESG matters may subject Aegon to additional costs or risks or otherwise adversely impact Aegon businesses. Aegon may not be able to meet evolving ESG standards and requirements or may fail to meet its sustainability and
Annual Report on Form 20-F 2023 | 431 |
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Companies across industries, including insurance companies, asset managers, and banks are facing increasing scrutiny from a variety of stakeholders related to their ESG and sustainability practices. Such companies are expected and/or required to engage in certain initiatives and/or disclose the extent to which their activities and products, including their investments and the activities of the companies they invest in, meet ESG standards.standards which may be set by regulators, sustainability-focused NGOs, or other third parties. For example, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on ESG matters, and such ratings are used by some investors to inform their investment or voting decisions. These requirements and standards are continuously and rapidly evolving and have not yet crystalized.-, which may include different standards accross various jurisdictions. While Aegon strives to meet applicable ESG standards to the best of its abilities, it may not be successful in doing so, due to the dynamic nature and evolution of these standards and might not be able to anticipate in all respects the further evolution of such standards. This may have an impact on its reputation, products and sales, as well as on its activities and investments, including long term investments. Compliance with these standards may require it to incur substantial costs, including but not limited to the gathering, monitoring, and disclosure of relevant information. Aegon may face additional costs in the event it’sits efforts do not meet expectations. In addition, as part of its corporate efforts, Aegon has adopted certain sustainability and
Moreover, while Aegon creates and publishes disclosures, some of which are voluntary regarding ESG matters from time to time, many of these statements are based on hypothetical expectations and assumptions that may or may not be representative of current or actual risks or events or forecasts of expected risks or events, including the costs associated therewith. Such expectations and assumptions are necessarily uncertain and may be prone to error or subject to misinterpretation given the long timelines involved and the lack of any established single approach to identifying, measuring and reporting on many ESG matters. Such disclosures may also be at least partially reliant on third-party information that Aegon has not independently verified or cannot be independently verified. In addition, various policymakers have adopted, or are considering adopting, requirements for extensive disclosures on climate-related and/or other ESG information, which may require us to incur significant additional costs to comply, including the implementation of significant new internal controls on matters historically not subject to such controls, and impose increased oversight obligations on our management and board. Simultaneously, there are efforts by some stakeholders to reduce companies’ efforts on certain ESG-related matters. Both advocates and opponents to certain ESG matters are increasingly resorting to a range of activism forms, including media campaigns and litigation, to advance their perspectives. To the extent we are subject to such activism, it may require us to incur costs or otherwise adversely impact our business. This and other stakeholder expectations will likely lead to increased compliance costs as well as scrutiny that could heighten all the risks identified in this risk factor. In addition, there has been a trend in certain states of the U.S. to constrain the use of ESG-related considerations by financial institutions in business decision-making. Such ESG matters may also impact Aegon’s suppliers or customers, which may adversely impact its business, financial condition, or results of operations.
Tax risks may have a material adverse effect on Aegon’s businesses, profits, capital position, and financial condition.
Tax risks are risks associated with the organization’s tax practices that might lead to a negative effect on the substancegoals of the organization and interpretation of tax laws in all countries in which Aegon operatesto financial or invests.reputational damage. The majority of tax risks relate to both Aegon’s products and its businesses, that wouldbusinesses. Types of tax risks vary from changes in legislation, compliance risks, reporting risks, or a perception of aggressive tax practices.
The first type of risk may materialize due to (i) changes in tax laws, (ii) changes
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432 | Annual Report on Form 20-F 2023
Risk factors Aegon Ltd. | ||||
compliance is caused by inaccurate, incomplete, and/or not timely reports of tax information, filings and/or payments required by regulatory agencies. Materialization of this risk could lead to increased tax charges, penalties, and interest.
Failure to manage reporting risks may lead to tax positions in financial reporting that do not represent a true and fair view.
The risk of the perception of aggressive tax practices may lead to reputational impact and could negatively affect Aegon’s businesses. Overall, tax risks may have a material adverse effect on Aegon’s businesses, profits, capital position, and financial condition.
Aegon is a Bermuda company and it may be difficult to effect service of US courts may notprocess on, or enforce judgments against the company or its Directors and executive officers in the United States.
Aegon is incorporated under the laws of Bermuda, and the rights of its shareholders will be enforceable againstgoverned by Bermuda law and its memorandum of continuance and bye-laws. In addition, certain of our Directors and officers reside outside the United States. Aegon in Dutch courts.
In addition to and irrespective of jurisdictional issues, the Bermuda courts will not enforce a U.S. federal securities law that is either penal or contrary to public policy in Bermuda. It is the advice of our Bermuda counsel that an action brought pursuant to a public or penal law, the purpose of which is the enforcement of a sanction, power or right at the instance of the state in its sovereign capacity, will not be entertained by a Bermuda court. Certain remedies available under the laws of U.S. jurisdictions, including certain remedies under U.S. federal securities laws, maywould not be available under Bermuda law or enforceable in Dutch courts. Therefore, Aegon’s investors that obtain a judgmentBermuda court, as they would be contrary to Bermuda public policy. Further, no claim may be brought in Bermuda against Aegon or its Directors and officers in the United Statesfirst instance for violation of U.S. federal securities laws because these laws have no extraterritorial jurisdiction under Bermuda law and do not have force of law in Bermuda. A Bermuda court may, not be able to requirehowever, impose civil liability on Aegon to payor its Directors and officers if the amount of the judgment unless a competent court in the Netherlands gives binding effect to the judgment, or, if possible, the US investor has brought a successful original actionfacts alleged in a Dutch court. Therefore, investors are requiredcomplaint constitute or give rise to undertake morea cause of action in order to enforce a US court judgment than in relation to any US counterparty.
Aegon may not manage risks associated with the reform and replacement of benchmark rates effectively.
Aegon recognizes that the reform of Interbank Offered Rates (‘IBORs’(“IBORs”) and any transition to replacement rates entail risks for all it’sits businesses across Aegon’sits assets and liabilities. These risks include, but are not limited to:
Financial risks, arising from any changes |
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Aegon may not be able to protect its intellectual property and may be subject to infringement claims.
Aegon relies on a combination of contractual rights with third parties and copyright, trademark, patent, and trade secret laws to establish and protect Aegon’s intellectual property. Third parties may infringe on or misappropriate Aegon’s intellectual property, and it is possible that third parties may claim that Aegon has infringed on or misappropriated their intellectual property rights. Any resulting proceedings in which Aegon would have to enforce and protect its intellectual property or defend itself against a claim of infringement of a third party’s intellectual property, may require significant effort and resources and may not prove successful. As a result of any proceeding in which Aegon would have to enforce and protect its intellectual property, Aegon may lose intellectual property protection, which may have a material adverse effect on Aegon’s businesses, results of operations, financial condition and Aegon’s ability to compete and pursue future business opportunities. As a result of any proceeding in which Aegon would have to defend itself against a claim of infringement of a third-party’s intellectual property, Aegon may be required to pay damages and provide injunctive relief, which may have a material adverse effect on Aegon’s businesses, results of operations and financial condition.
Annual Report on Form 20-F 2023 | 433 |
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Risks relating to Aegon’s common shares
Aegon’s share price could be volatile and could drop unexpectedly, and investors may not be able to resell Aegon’s common shares at or above the price paid.
The price at which Aegon’s common shares trade is influenced by many factors, some of which are specific to Aegon and
Aegon and its significant shareholders may offer additional common shares in the future, and these and other sales may adversely affect the market price of the outstanding common shares.
Aegon may decide to offer additional common shares in the future, for example, to strengthen Aegon’s capital position in response to regulatory changes or to support an acquisition.
An additional offering of common shares by Aegon, the restructuring of Aegon’s share capital, the sales of common shares by significant shareholders, or the public perception that an offering or such sales may occur, may have an adverse effect on the market price of Aegon’s common shares.
Vereniging Aegon, Aegon’s major shareholder, holds a large percentage of the voting shares and therefore has significant influence over Aegon’s corporate actions.
Vereniging Aegon holds 32.6% of Aegon’s voting shares. For details on the shareholding of Vereniging Aegon, its developments, the Amended 1983 Merger Agreement and the Voting Rights Agreement, please see the section Major shareholders section on pages 281380 through 283383 of the 2021 Integrated Annual Report.
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Following the 1983 Amended Merger Agreement between Aegon N.V.Ltd. and Vereniging Aegon, Vereniging Aegon has a call option on common shares B, which Vereniging Aegon may exercise to keep or restore its total stake at 32.6%, irrespective of the circumstances which cause the total shareholding to be or become lower than 32.6%.
Under Bermuda law and Aegon’s bye-laws, common shares and common shares B offer equal full voting rights, as they have equal nominal values (EUR 0.12). The financial rights attached to a common share B are 1/40 of the financial rights attached to a common share. The Voting Rights Agreement between Aegon N.V.Ltd. and Vereniging Aegon ensures that under normal circumstances, i.e. except in the event of a Special Cause, Vereniging Aegon will no longer be able to exercise more votes than is proportionate to the financial rights represented by its shares. This means that in the absence of a Special Cause, Vereniging Aegon will cast one vote for every common share it holds and one vote only for every 40 common shares B. It is at the sole discretion of Vereniging Aegon if a Special Cause has occurred. A Special Cause includes the acquisition of a 15% interest in Aegon N.V.Ltd., a tender offer for Aegon N.V.Ltd. shares or a proposed business combination by any person or group or persons, whether individually or as a group, other than in a transaction approved by the ExecutiveCEO and Board and the Supervisory Board.of Directors. In the event
434 | Annual Report on Form 20-F 2023
Risk factors Aegon Ltd. | ||||
of a Special Cause, Vereniging Aegon’s voting rights will increase to 32.6% for up to six months. Consequently, Vereniging Aegon may have substantial influence on the outcome of corporate actions requiring shareholder approval.
Currency fluctuations may adversely affect the trading prices of Aegon’s common shares and the value of any cash distributions made.
Since Aegon’s common shares listed on Euronext Amsterdam are quoted in euros and Aegon’s common shares listed on NYSE New York are quoted in US dollars, fluctuations in exchange rates between the euro and the US dollar may affect the value of Aegon’s common shares. In addition, Aegon declares cash dividends in euros, but pays cash dividends, if any, on Aegon’s New York registry Shares in US dollars based on an exchange rate set the business day following the shareholder meeting approving the dividend. As a result, fluctuations in exchange rates may affect the US dollar value of any cash dividends paid.
Perpetual Contingent Convertible Securities (or other securities that permit or require Aegon to satisfy its obligations by issuing common shares) that Aegon may issue could influence the market price for Aegon’s common shares.
In April 2019, Aegon issued EUR 500 million Perpetual Contingent Convertible Securities (‘PCCS’(“PCCS”). Upon the occurrence of a conversion trigger event the PCCS will be converted into common shares of the Company at the prevailing conversion price. A conversion trigger event shall occur if at any time: (i) the amount of eligible own funds items eligible to cover the Solvency Capital Requirement is equal to or less than 75% of the Solvency Capital Requirement; (ii) the amount of own fund items eligible to cover the Minimum Capital Requirement is equal to or less than the Minimum Capital Requirement; (iii) in case the Minimum Capital Requirement is an event, such event occurs; or (iv) a breach of the Solvency Capital Requirement has occurred and such breach has not been remedied within a period of three months from the date on which the breach was first observed. The conversion price was set at EUR 2.994 per common share and will be adjusted upon occurrence of dilutive events like stock splits, extraordinary dividends or stock dividends, rights issues and others. A reduction of the conversion price will result in an increase in the number of common shares to be issued.
The PCCS and other convertible securities may influence the market for Aegon’s common shares. For example, the price of Aegon’s common shares may become more volatile and may be depressed by the issue of common shares upon conversion of the PCCS and/or any convertible securities or by the acceleration by investors of any convertible securities (or other such securities) that Aegon may have issued. Negative price developments may also result from hedging or arbitrage trading activity by holders of such convertible securities that may develop involving such convertible securities (or other such securities) and Aegon’s common shares. Any such developments may negatively affect the value of Aegon’s common shares.
Annual Report on Form 20-F 2023 | 435 |
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Compliance with regulations
Disclosure pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act
Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 requires Aegon to disclose whether Aegon N.V.Ltd. or any of its affiliates hashave knowingly engaged during the calendar year in certain activities, transactions or dealings relating to Iran or with U.S.-sanctioneddesignated natural persons including any transaction or dealing withentities sanctioned under programs relating to terrorism or the Governmentproliferation of Iran that is not conducted pursuant to a specific authorizationweapons of the U.S. government.mass destruction. The amounts in this section are reported in EUR 1 or GBP 1.
In the UK, and the Netherlands, Aegon maintained a limited number of plans that are reportable under Section 219.
Aegon UK has sixfive active UK resident customers who have one active Individual Pension Plan (IPP). Three.One of thesethe active customers received contributions into their plansplan in 20212023 as employeesan employee of
The pensions are managed in line with applicable legislation and regulation in the UK and the charity is not subject to sanctions in the UK or EU. The relationships are under close ongoing review. IPP #1 has a value of GBP 21,174361,590 as at February 8, 2022,of January 16, 2024, and regular monthly contributions of GBP 69.41 was received into this policy until the last payment on 03/06/2021.527.91 are being received. IPP #2 has a value of GBP 8,70110,052 as at February 8, 2022,of January 16, 2024, and regular monthlyno contributions of GBP 18.61 are being received. IPP #3 has a value of GBP 323,61772,387 as at February 8, 2022,of January 16, 2024, and regular monthlyno contributions of GBP 527.91 are being received. IPP #4 has a value of GBP 15,35316,619 as at February 8, 2022,of January 16, 2024, and no further contributions are being received. IPP #5 has a value of GBP 66,34817,624 as at February 8, 2022,of January 16, 2024, and no further contributions are being received. IPP #6 has a current value of GBP 14,479 as at February 8. 2022, and no further contributions are being received. The related annual net profit arising from these contracts which is difficult to calculate with precision but is estimated to be no greater than GBP 13,490.
Aegon Ltd. is not aware of any other activity, transaction or dealing by itself or any of its affiliates during the Netherlands, Aegon Levensverzekering N.V. has two Dutch resident customers who were subjects to US sanctions – up until May 2021 – and for whom active IPP (both individuals) and one individual life investment (onefiscal year that is disclosable in this report under Section 13(r) of the individuals) linked insurance policy are held. These persons were listed onExchange Act. As of the Foreign Sanctions Evaders List (‘FSE List’) with regards to Syria and were listed on the SDN and Blocked Persons List. The FSE List includes persons sanctioned pursuant to E.O. 13608 and are identified with the program tag
436 | Annual Report on Form 20-F 20212023
Property, plant and equipment | ||||
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Property, plant and equipment
Aegon owns 95 offices located in Cedar Rapids, United States with a total square footage of 0.90.6 million. Aegon also leases space for various offices located throughout the United States under long-term leases with a total square footage of 0.70.6 million. Aegon’s principal offices in the United States are located in Baltimore, MD; Denver, CO; Cedar Rapids, IA; Johns Creek, GA; Baltimore, MD;Knoxville, TN; Harrison, NY, St. Petersburg, FL and Plano, TX.
In Canada, Aegon leases space for various offices under long-term leases with a total square footage of 17.5 thousand. Aegon’s principal offices owned by Aegon are located in The HagueToronto, ON.
Aegon leases its headquarters in the Netherlands (The Hague) under a short term lease. Also, Aegon leases office space in Hungary (budapest) and Groningen, The Netherlands, and Budapest, Hungary.Bermuda (Hamilton) under long term leases. Aegon Spain owns some commercial offices while its headquarters and leasessome other commercial offices in the Netherlands (Amsterdam, Leeuwarden and Zaandam),are leased under long term leases. Other offices in the United Kingdom and in Spain underare long-term leases. Aegon believes that its properties are adequate to meet its current needs.
Annual Report on Form 20-F 2023 | 437 |
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Employees and labor relations
A break-down of the number of employees by segments is provided below:
2021 | 2020 | 2019 | ||||||||||
Americas | 7,675 | 7,960 | 8,570 | |||||||||
The Netherlands | 3,855 | 3,930 | 3,998 | |||||||||
United Kingdom | 2,476 | 2,307 | 2,261 | |||||||||
International | 6,590 | 6,598 | 7,393 | |||||||||
Asset Management | 1,675 | 1,527 | 1,535 | |||||||||
22,271 | 22,322 | 23,757 | ||||||||||
Of which Aegon’s share of employees in joint ventures and associates | 4,228 | 4,193 | 5,162 |
2023 | 2022 | |||||||
Americas | 6,967 | 6,153 | ||||||
United Kingdom | 2,591 | 2,621 | ||||||
International | 3,654 | 4,281 | ||||||
Asset Management | 1,409 | 1,464 | ||||||
Holdings and other activities | 1,037 | 958 | ||||||
15,658 | 15,478 | |||||||
Of which Aegon’s share of employees in joint ventures and associates | 3,204 | 3,507 |
Note that employees who work at Aegon’s Corporate Center are included in numbers of the countrysegment in which they are located.
After the divestment of Aegon’sAegon NL, the remaining employees in the Netherlands other thanare employed by a new entity named Aegon Employees Netherlands B.V. All its employees, excluding senior management, arecontinue to be covered by the collective labor agreement of Aegon NL. Aegon, the unions and the Dutch Central Works Council are working closely together in
Under Dutch law, members of the Central Works Council responsible for Aegon in the Netherlands are elected by the employees of Aegon the Netherlands’ employees. The Central Works Council has certain defined powers at the level of the Dutch subsidiary company Aegon Nederland N.V., including the right to make
See note 14 Commissions and13 Other operating expenses of the Notes to the consolidated financial statements of this Annual Report on Form
438 | Annual Report on Form 20-F 20212023
Group dividend policy | ||||
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Group dividend policy
Aegon aims to pay out a sustainable dividend to allow equity investors to share in Aegon’s performance, which can grow over time if Aegon’s performance so allows. Aegon’s plans for returning capital to shareholders are based onon: the actual and expected capital position of its operating units, the expected levels of capital generation and free cash flow, and the expected allocation of capital to invest in Aegon’s strategy and in the quality of its balance sheet.
Capital remittances from Aegon’s local units
After investment in new business to generate organic growth, the expected capital generation in Aegon’s operating subsidiariesunits is available for distribution to the holding company,Company, while maintaining a capital and liquidity position in the operating subsidiariesunits in line with Aegon’s capital management and liquidity risk policies in addition to adhering to local regulatory and statutory requirements and restrictions.
Capital return to shareholders
Aegon uses cash flows from its operating subsidiariesunits to pay unallocated holding expenses, including funding costs. The remaining cash flow is available to execute Aegon’s strategy and to fund dividends on its shares, subject to maintaining the Holding’sCompany’s capital and liquidity in line with its capital management and liquidity risk policies. Aegon’s Executive Board
Aegon takes into account the applicable laws, the actual and expected capital positionpositions of its operating units, Cash Capital at Holding balances, leverage ratios and strategic considerations when declaring or proposing dividends on common shares. Depending on circumstances, future prospects and other considerations, Aegon’s Executive Board of Directors has discretion to deviate from the aforementioned capital and liquidity measures.
While Aegon would expectuses dividend as the primary means to declaredistribute capital to Aegon’s shareholders, share buy-back programs are also recognized as an interimappropriate means to return capital.
If Aegon decides to distribute (interim) dividends, it is Aegon’s intention to pay these dividends in cash. However, Aegon’s Board of Directors will have the discretion to make dividend when announcing Aegon’s second quarter results and to proposepayments solely in stock or offer the holder of common shares a final dividend at the Annual General Meeting of Shareholders for approval. Dividends would normally be paid inchoice between cash or stock at the election of the shareholder. The relative value of cash and stock dividends may vary. Stock dividends paid may, subject to capital management and other considerations, be repurchased in order to limit dilution.
In connection with dividends that are paid out in cash or in common shares. For dividends, which holders may elect to receive in either cash or common shares, the value of the stock alternative may differ slightly from the value of the cash option.Aegon’s corporate website will publish if and where Dividend Reinvestment Programmes (“DRIP”) are available. Aegon pays cash dividends on shares of New York registry in US dollars through Citibank, N.A., Aegon’s NYSE paying agent, based on the foreign exchange reference rate (WM/Reuters closing spot exchange rate fixed at 5.00 pm Central European Summer Time (‘CEST’)) on theone business day before the
Governance
Under Bermuda law and Aegon’s Bye-laws, the Board of Directors may, before declaring any dividend, set aside such sums as it thinks proper as reserves which shall, at the discretion of the Board of Directors, be applicable for any purpose of Aegon.
Aegon may make one or more dividend distributions to the holders of common shares. The decision to declare an interim dividend is at the full discretion of Aegon’s Board of Directors.
The Board of Directors determines the dividend payment date and the dividend record date for the common shares and also determines the currency or currencies in which the dividends are paid. Under normal circumstances, Aegon expects to declare a final dividend at the Annual General Meeting of Shareholders and to propose an interim dividend when announcing its second quarter results. Depending on circumstances, future prospects and other considerations, Aegon’s Board of Directors may choose to deviate from this approach.
There is no requirement or assurance that Aegon will declare and pay any dividends.
Annual Report on Form 20-F 2023 | 439 |
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The offer and listing
The principal market for Aegon’s common shares is Euronext Amsterdam, where they are listed under the symbol ‘AGN’.
On Euronext Amsterdam, only Euronext registered shares may be traded. On NYSE, only New York Registry Shares may be traded.
440 | Annual Report on Form 20-F 20212023
![]() | Memorandum and | |||
Memorandum and ArticlesBye-Laws
Aegon is a Bermuda exempted company with liability limited by shares, having its registered office in Hamilton, Bermuda. Aegon has its principal place of Association
Certain provisions of Aegon’s current Articles of AssociationBye-Laws are discussed below.
Objects and purposes
Provisions related to directors
For information with respect to provisions in the ArticlesBoard of Association relating to members of the Supervisory Board and Executive Board,Directors, refer to the Governance section (see pages
Description of Aegon’s capital stock
Aegon has two types of shares: common shares (par value EUR 0.12) and common shares B (par value EUR 0.12).
Common characteristics of the common shares and common shares B
• All shares are in registered form;
• All shares have dividend rights except for those shares (if any) held by Aegon as treasury stock. Dividends which have not been claimed within five years lapse to Aegon;
• Each currently outstanding share is entitled to one vote except for shares held by Aegon as treasury stock. There are no upward restrictions;
• However, under normal circumstances, i.e. except in the event of a Special Cause, based on the Voting Rights Agreement, Vereniging Aegon will not be able to exercise more votes than is proportionate to the financial rights represented by its shares. This means that in the absence of a Special Cause, Vereniging Aegon may cast one vote for every common share it holds and one vote only for every 40 Common Shares B it holds. As Special Cause qualifies the acquisition of a 15% interest in Aegon, a tender offer for Aegon shares or a proposed business combination by any person or group of persons, whether individually or as a group, other than in a transaction approved by the Board of Directors. If, in its sole discretion, Vereniging Aegon determines that a Special Cause has occurred, Vereniging Aegon will notify the General Meeting of Shareholders and retain its right to exercise the full voting power of one vote per common share B for a limited period of six months;
• All shares have the right to participate in Aegon’s net profits. Net profit is the amount of profits after contributions, if any, to a reserve account;
• In the event of liquidation, all shares have the right to participate in any remaining balance after settlement of all debts;
• The Board of Directors may resolve to repurchase shares and subsequently cancel these treasury shares. In all other events the General Meeting of Shareholders may resolve to alter the capital by cancellation of the shares, change the currency denomination of its share capital, consolidate and divide all or any of the Aegon’s share capital into shares of larger par value than the existing shares and sub-divide the Aegon’s shares into shares of smaller par value than is fixed by the Aegon’s Bye-Laws;
• There are no sinking fund provisions;
• All issued shares are fully paid-up; so, there is no liability for further capital calls; and
• There are no provisions discriminating against any existing or prospective holder of shares as a result of such shareholder owning a substantial number of shares.
Differences between common shares and common shares B
• The Common Shares are listed; the Common Shares B are not listed;
• The financial rights attaching to a common share B are one-fortieth (1/40th) of the financial rights attaching to a common share; and
• A repayment on Common Shares B needs approval of the holders of Common Shares B.
• A transfer of Common Shares B requires approval of the Board of Directors of Aegon
Annual Report on Form 20-F 2023 | 441 |
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Actions necessary to change the rights of shareholders
To change the right of shareholder the Bye-Laws and the Memorandum of Continuance need to the rightsbe amended. The Board of shareholders would requireDirectors resolves on an amendment of the Bye-Laws. In order for such amendment to take effect, it must be approved by the Articles of Association. The General Meeting of Shareholders (AnnualShareholders. An amendment of the Memorandum of Continuation needs to be approved by the Board and the General Meeting of Shareholders. Under Bermuda law, shareholders who, alone or Extraordinary General Meeting) may only passjointly, represent at least 20% of Aegon’s paid-up share capital or any class thereof have the right to, within 21 days after a resolution to amend the ArticlesMemorandum of Association pursuantContinuation has been adopted by the General Meeting of Shareholders, apply to a proposalthe Supreme Court of Bermuda for an annulment of such amendment of the Executive Board with the approvalMemorandum of Continuation, other than an amendment which alters or reduces Aegon’s share capital as provided in Bermuda law. No application may be made by Shareholders voting in favor of the Supervisory Board. The resolution requires a majority of the votes cast at the meeting in order to pass. The actual changes to the text of the Articles of Association will be executed by a civil law notary.
Furthermore, a resolution of the General Meeting of Shareholders to amend the Articles of AssociationBye-Laws which has the effect of reducing the rights attributable to holders of a specific class shall be subject to the approval of the meeting of holders of such class.
Conditions under which meetings are held
A General MeetingsMeeting of Shareholders must be convened at least 30 days prior to the day of the General Meeting of Shareholders and Extraordinaryshall be called by way of a press release and publication on the website. The notice shall specify the place, day and time of the meeting, the record date, means of electronic communication, if any, and the agenda of the meeting. General Meetings of Shareholders shallwill be convened by public notice. Notice must be given no later than 42 days prior to the dateBoard of Directors. Shareholders representing at least ten per cent (10%) of the meeting. The notice must containpaid-up share capital may request a summary agenda and indicateGeneral Meeting of Shareholders. Shareholders representing at least one per cent (1%) of the place where the complete agenda together with the documents pertainingissued capital or one hundred (100) or more shareholders jointly may request one or more items to be added to the agenda of a General Meeting of Shareholders. Such a request must be received by Aegon not less than six (6) weeks before the General Meeting of Shareholders. Matters that are not reserved for, or do not require a resolution of the General Meeting of Shareholders pursuant to the Bye-Laws or Bermuda law, may only be obtained.included as a non-voting discussion item that shall be non-binding to the company and the Board of Directors unless otherwise and at its sole discretion determined by the Board of Directors. The agenda is also sent to shareholders registered with the Company Register. New York Registry shareholders or their brokers receive a proxy solicitation notice.
The Dutch law determines that the record date is 28used to determine shareholders’ entitlements with regard to their participation and voting rights in a General Meeting of Shareholders. The record date may be determined by the Board of Directors and may not be more than sixty (60) days prior tobefore or later than twenty (20) business days before the date fixed for the General Meeting of Shareholders. Shareholders must notify Aegon of their intention to attend the meeting.
Limitation on the right to own securities
There are no limitations, either under the laws of the NetherlandsBermuda or in Aegon’s Articles of Association,Bye-Laws on the rights of
Provisions that would have the effect of delaying a change of control
The General Meeting of Shareholders appoints the members of the Board of Directors. If the appointment of a member of the Board of Directors is proposed by the Board of Directors, the General Meeting of Shareholders to suspendresolution requires a simple majority of the votes cast, while otherwise, the resolution requires a two-thirds majority of the votes cast, which majority must represent more than half of the issued share capital. Members of the Board of Directors will be appointed for a term of not more than four years. If the removal or dismisssuspension of a member of the Executive Board or a member of the Supervisory Board, other than pursuant to a proposalDirectors is proposed by the Supervisory Board shall require at least
In the event a Special Cause occurs (such as the acquisition of 15% of Aegon’s voting shares, a tender offer for Aegon’s shares or a proposed business combination by any person or group of persons, whether individually or as a group, other than in a transaction approved by the Executive Board and Supervisory Board)of Directors), Vereniging Aegon will be entitled to exercise its full voting rights of one vote per each common share B for up to six months per Special Cause, thus increasing its current voting rights to 32.6%.
442 | Annual Report on Form 20-F 2023
Memorandum and Bye-Laws | ||||
Threshold above which shareholder ownership must be disclosed
There are no such provisions in the Articles of Association.Bye-Laws. Aegon is listed in the Netherlands and Dutch law applies to its listing. Dutch law requires public disclosure with the Authority for Financial Markets with respect to the ownership of listed shares when the following thresholds are met: 3%, 5%, 10%, 15%, 20%, 25%, 30%, 40%, 50%, 60%, 75% and 95%.
Material differences between DutchBermuda law and US company law with respect to the items above
Reference is made to the paragraph ‘Differences between DutchBermuda and US company laws’ included in the section Differences between DutchBermuda and US company laws of this Annual Report (see page 349)444).
Special conditions governing changes in the capital
There are no conditions more stringent than what is required by law.
Annual Report on Form 20-F 2023 | 443 |
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Differences between Bermuda and US company laws
Bermuda company law differs in certain material respects from US law.
Amendment of the constitutional documents
The Board resolves on the amendment of the Bye-Laws. In order for such amendment to take effect, it must be approved by the General Meeting. An amendment of the Memorandum of Association needs to be approved by the Board and the General Meeting. Under Bermuda law, shareholders who, alone or jointly, represent at least 20% of Aegon Ltd.’s paid-up share capital or any class thereof have the right to, within 21 days after a resolution to amend the Memorandum of Association has been adopted by the General Meeting, apply to the Supreme Court of Bermuda for an annulment of such amendment of the Memorandum of Association, other than an amendment which alters or reduces Aegon Ltd.’s share capital as provided in Bermuda law. No application may be made by shareholders voting in favor of the amendment.
The corporation law of many US states require that, unless a greater percentage is provided for in the certificate of incorporation, a majority of the outstanding stock entitled to vote is required to approve the amendment of the certificate of incorporation at the stockholders’ meeting. Additionally, the corporation law of many US states provide that holders of a majority of the voting power of a corporation and, if so provided in the certificate of incorporation, the Directors of the corporation, have the power to adopt, amend and repeal the bylaws of a corporation.
Calling of Special Shareholders Meetings
See “Corporate Governance” for a discussion of the procedures related to calling of special shareholders meetings under our Bye-Laws and Bermuda law.
The corporation laws of many US states permit the Board of Directors or any person who is authorized under a corporation’s certificate of incorporation or by-laws to call a special meeting of shareholders.
444 | Annual Report on Form 20-F 20212023
![]() | Material contracts | |||
Material contracts
On October 27, 2022, Aegon and US company laws
The Supervisory Board performs supervisory and advisory functions only, and its members are outsiders that are not employed by the Company. The Supervisory Board has the duty to supervise the performancedownward adjustment of the Executive Board,cash amount by approximately EUR 0.3 billion relates to the Company’sadditional a.s.r. shares that Aegon will receive with a value of approximately EUR 0.3 billion to maintain a 29.99% shareholding in a.s.r. at the time of closing of the proposed transaction.
On January 17, 2023, the general coursemeeting of affairsshareholders of Aegon N.V. and the business connectedgeneral meeting of shareholders of a.s.r. approved the Transaction. Furthermore, the works councils of Aegon and a.s.r. rendered a positive advice in relation to the Transaction.
In July 2023, Aegon completed the transaction to combine its Dutch pension, life and non-life insurance, banking and mortgage origination activities with it.a.s.r. The Supervisory Board also assists the Executive Board by giving advice. Other powerscompletion of the Supervisory Board includetransaction also marked the prior approvalbeginning of certain important resolutionsAegon’s asset management partnership with a.s.r.
In connection with this Transaction the following material contract has been identified:
The full terms and conditions of the Executive Board. MembersTransaction are laid down in the BCA. The BCA has been filed as an Exhibit to Aegon’s Annual Report on Form 20-F for fiscal year ended December 31, 2022. Refer to separate section on Exhibits.
There are no other material contracts.
Annual Report on Form 20-F 2023 | 445 |
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Exchange controls
Under the Bermuda Exchange Control Act 1972 and the Bermuda Exchange Control Regulations 1973, the specific permission of the Supervisory BoardBermuda Monetary Authority is required for all issues and transfers of securities of Bermuda companies to persons who are non-resident, other than in cases where general permission has been given. General permission can be given where a Bermuda company has equity securities listed on an appointed forstock exchange.
The Bermuda Monetary Authority has issued its general permission to Aegon Ltd. As a four-year term and may be dismissed by the General Meeting of Shareholders. The remuneration of Supervisory Board members is fixed by the General Meeting of Shareholders. Resolutions entailing a significant change in the identity or characterresult of the Companylisting of Aegon Ltd.’s shares on the Euronext Amsterdam and New York Stock Exchange, it can rely on this general permission. This means that Aegon does not need to apply for specific permission for the issue or transfer of its business require the approval of the General Meeting of Shareholders.shares, to pay dividends or distribute capital, open and maintain bank accounts in any currency or to acquire assets or meet its liabilities.
446 | Annual Report on Form 20-F 20212023
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![]() | United States tax consequences to holders of shares | |||
United States tax consequences to holders of shares
Introduction
This section describes certain US Federal income tax consequences to beneficial holders of common shares that are held as capital assets, including certain Dutch withholding tax considerations. This section does not address all US Federal income tax matters that may be relevant to a particular holder. Each investor should consult their tax advisor with respect to the tax consequences of an investment in the common shares. This section does not address tax considerations for holders of common shares subject to special tax rules including, without limitation, the following:
Tax-exempt entities; |
Regulated investment companies; |
Further, this section does not address alternative minimum tax consequences or the indirect effects on the holders of equity interests in a holder of common shares. This section also does not describe any tax consequences arising under the laws of any taxation jurisdiction other than the Federal income tax laws of the US Federal government.
This section is based on the US Internal Revenue Code of 1986, as amended, US Treasury regulations and judicial and administrative interpretations, in each case as in effect and available on the date of this Annual Report. All of the foregoing is subject to change, which change could apply retroactively and could affect the tax consequences described below.
For the purposes of this section, a ‘US holder’ is a beneficial owner of common shares that is, for US Federal income tax purposes:
A citizen or individual resident of the United States; |
A non-US
If an entity treated as a partnership for US Federal income tax purposes holds common shares, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding common shares and the partners in such partnerships should consult their tax advisors regarding the US Federal income tax consequences to them.
Annual Report on Form 20-F 2023 | 447 |
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Dividend withholding tax in the Netherlands
Withholding requirement
Aegon is required to withhold 15% Dutch dividend withholding tax in respect of the gross dividends paid on its common shares. In the Dutch Dividend Withholding Tax Act 1965 (Wet op de dividendbelasting 1965), dividends are defined as the proceeds from shares, which include:
Liquidation proceeds, proceeds on redemption of Aegon common shares and, as a rule, the consideration for the repurchase of its own common shares by Aegon in excess of the average paid-in capital recognized for Dutch dividend withholding tax purposes, unless a particular statutory exemption applies. |
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The nominal value of new common shares issued to a holder of Aegon common shares or an increase of the nominal value of Aegon common shares, except insofar as the (increase in the) nominal value of Aegon common shares is funded out of its paid-in capital as recognized for Dutch dividend withholding tax purposes. |
Partial repayments of paid-in capital recognized for Dutch dividend withholding tax purposes, if and to the extent there are qualifying profits (zuivere winst), unless Aegon’s General Meeting of Shareholders has resolved in advance to make such repayment and provided that the nominal value of Aegon common shares concerned has been reduced by an equal amount by way of an amendment of the Articles of Association. The term ‘qualifying profits’ includes anticipated profits that have yet to be realized. |
US residents
Residents of the United States that qualify for and comply with the procedures for claiming benefits under the Convention between the Kingdom of the Netherlands and the United States of America for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income 1992 (the US/NL Income Tax Treaty) may, under various specified conditions, be eligible for a reduction of the Dutch dividend withholding tax rate from 15% to 5% if the resident of the United States is a company which holds directly at least 10% of the voting power in Aegon. The US/NL Income Tax Treaty provides, subject to certain conditions, for a complete exemption from, or refund of, Dutch dividend withholding tax for dividends received by exempt pension trusts and exempt organizations, as defined therein.
Beneficial owner
A recipient of proceeds from Aegon common shares will not be entitled to any exemption, reduction, refund or credit of Dutch dividend withholding tax if such recipient is not considered to be the beneficial owner of such proceeds. The recipient will not be considered the beneficial owner of these proceeds, if, in connection with such proceeds, the recipient has paid a consideration as part of a series of transactions in respect of which it is likely:
That the proceeds have in whole or in part accumulated, directly or indirectly, to a person or legal entity that would: (i) as opposed to the recipient paying the consideration, not be entitled to an exemption from dividend withholding tax; or (ii) in comparison to the recipient paying the consideration, to a lesser extent be entitled to a reduction or refund of dividend withholding tax; and |
US tax treatment of distributions
The gross amount of any distribution (including any amounts withheld in respect of Dutch withholding tax) actually or constructively received by a US holder with respect to common shares will be taxable to the US holder as a dividend. Such dividends will not qualify for the dividends received deduction otherwise allowable to corporations. The amount of any distribution of property other than cash will be the fair market value of that property on the date of distribution.
Certain ‘qualified dividend income’ received by certain
448 | Annual Report on Form 20-F 2023
United States tax consequences to holders of shares | ||||
In addition, US holders receiving dividends may be subject to a net investment income tax (NIIT). The NIIT is an additional tax on the lesser of net investment income or the amount of modified adjusted gross income (MAGI) that is over a threshold amount based on filing status. Each US holder should consult their tax advisor regarding applicability of the NIIT.
Distributions paid in currency other than US dollars (a ‘foreign currency’), including the amount of any withholding tax thereon, must be included in the gross income of a US holder in an amount equal to the US dollar value of the foreign currency calculated by reference to the exchange rate in effect on the date of receipt. This is the case regardless of whether the foreign currency is converted into US dollars. If the foreign currency is converted into US dollars on the date of receipt, a US holder generally should not be required to recognize foreign currency gain or loss in respect of the dividend. If the foreign currency received in the distribution is not converted into US dollars on the date of receipt, a US holder will have a basis in the foreign currency equal to its US dollar value on the date of receipt. Any gain or loss on a subsequent conversion or other disposition of the foreign currency will be treated as ordinary income or loss.
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Dividends received by a US holder with respect to common shares will be treated as foreign source income for foreign tax credit limitation purposes. Subject to certain conditions and limitations, any Dutch incomedividend withholding tax withheld on dividends may be deducted from taxable income or credited against a US holder’s Federal income tax liability. The limitation on foreign taxes eligible for the US foreign tax credit is calculated separately with respect to ‘passive category income’ and ‘general category income’.specific categories of income. Dividends distributed by Aegon generally will constitute ‘passive category income’, or, in the case of certain US holders, ‘financial services income’, which is treated as general category income.. Each US holder should consult their tax advisor regarding the availability of the foreign tax credit under their particular circumstances.
The amount of the qualified dividend income paid by Aegon to a US holder that is subject to the reduced dividend income tax rate and that is taken into account for purposes of calculating the US holder’s US foreign tax credit limitation must be reduced by the ‘rate differential portion’ of such dividend. Each US holder should consult their tax advisor regarding the implications of the rules relating to qualified dividend income on the calculation of US foreign tax credits under their particular circumstances.
In general, upon making a distribution to shareholders, Aegon is required to remit all Dutch dividend withholding taxes to the Dutch tax authorities. TheIn such circumstances, the full amount of the taxes so withheld should (subject to certain limitations and conditions) be eligible for the US holder’s foreign tax deduction or credit as described above. Investors are urged to consult their tax advisors regarding the general creditability or deductibility of Dutch withholding taxes.
Aegon generally affords shareholders an option to receive dividend distributions in cash or in stock. A distribution of additional common shares to US holders with respect to their common shares that is made pursuant to such an election will generally be taxable in the same manner as a cash dividend under the rules described above.
Sale or other disposition of shares
Upon the sale or exchange of common shares, a US holder will generally recognize gain or loss for US Federal income tax purposes on the difference between the US dollar value of the amount realized from such sale or exchange and the US dollar value of the tax basis in those common shares. This gain or loss will be a capital gain or loss and will generally be treated as from sources within the United States. Investors should consult their tax advisors with respect to the treatment of capital gains (which may be taxed at lower rates than ordinary income for taxpayers who are individuals, trusts or estates that have held the common shares for more than one year) and capital losses (the deductibility of which is subject to limitations).
In addition, US holders with capital gains may be subject to a NIIT. The NIIT is an additional tax on the lesser of net investment income or the amount that is over a threshold amount based on filing status. Each US holder should consult their tax advisor regarding applicability of the NIIT.
If a US holder receives foreign currency upon a sale or exchange of common shares, gain or loss, if any, recognized on the subsequent sale, conversion or disposition of such foreign currency will be ordinary income or loss, and will generally be income or loss from sources within the United States for foreign tax credit limitation purposes. However, if such foreign currency is converted into US dollars on the date received by the US holder, the US holder generally should not be required to recognize any gain or loss on such conversion.
Annual Report on Form 20-F 2023 | 449 |
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Passive foreign investment company considerations
Based on the nature of Aegon’s gross income, the average value of Aegon’s gross assets and the active conduct of Aegon’s insurance business, Aegon does not believe that it could be classified as a passive foreign investment company (PFIC). If Aegon were treated as a PFIC in any year during which a US holder owns common shares, certain adverse tax consequences could apply. Investors should consult their tax advisors with respect to any PFIC considerations.
Tax consequences to
A
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US withholding and information reporting
Backup withholding and information reporting requirements may apply to certain payments on the common shares and to proceeds of a sale or redemption of the common shares to US holders made within the United States. Aegon, its agent, a broker, or any paying agent, as the case may be, may be required to withhold tax from any payment that is subject to backup withholding if a US holder fails to furnish the US holder’s taxpayer identification number, fails to certify that such US holder is not subject to backup withholding, or fails to otherwise comply with the applicable requirements of the backup withholding rules. Certain US holders are not subject to the backup withholding and information reporting requirements.
US and
Backup withholding and withholding under FATCA areis not an additional taxes.tax. Any amounts withheld under the backup withholding rules from a payment to a US holder or
Individual US holders may be required to report to the IRS certain information with respect to their beneficial ownership of certain foreign financial assets, such as the common shares, if the aggregate value of such assets exceeds USD 50,000 and the assets are not held through a US financial institution. US holders who fail to report required information could be subject to substantial penalties. Prospective investors should consult their own tax advisors concerning the application of the information reporting rules to their particular circumstances.
450 | Annual Report on Form 20-F 20212023
![]() | Principal accountant fees and services | |||
Principal accountant fees and services
PricewaterhouseCoopers Accountants N.V. (PwC) has served as Aegon’s independent public accountant for each of the years in the two-yearthree-year period ended December 31, 2021,2023, for which audited financial statements appear in this Annual Report.
The following table presents the aggregate fees for services rendered by PwC in 20212023 and 2020.
Independent public accountant fees
in EUR million | 2021 | 2020 | ||||||
Audit | 31 | 34 | ||||||
Audit-related | 3 | 5 | ||||||
Tax | - | - | ||||||
Other | - | - | ||||||
35 | 40 |
in EUR million | 2023 | 2022 | ||||||
Audit fees | 33 | 35 | ||||||
Audit-related service fees | 11 | 10 | ||||||
Tax | - | 1 | ||||||
Total | 44 | 45 |
Audit fees consist of fees billed for the annual financial statements audit (including quarterly reviews), subsidiary audits, equity investment audits and other procedures required to be performed by the independent auditor to be able to form an opinion on Aegon’s consolidated financial statements. These other procedures include information systems and procedural reviews and testing performed in order to understand and place reliance on the systems of internal control, and consultations relating to the audit or quarterly review. They also include fees billed for other audit services, which are those services that only the external auditor reasonably can provide, and include statutory audits or financial audits for subsidiaries or affiliates of the Company and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.
Audit-related services include, among others, assurance services to report on internal controls for third parties, due diligence services pertaining to potential business acquisitions/dispositions; discussions, review and testing of certain information related to the adoption of new accounting standards impacting future periods, financial reporting or disclosure matters not classified as ‘Audit services’; financial audits of employee benefit plans; and agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters.
Audit Committee pre-approval policies and procedures
Aegon’s Audit Committee is responsible, among other matters, for the oversight of the external auditor. The Audit Committee has adopted a policy regarding pre-approval of audit and permissible non-audit services provided by Aegon’s independent auditors (the Pre-approval Policy).
Under the Pre-approval Policy, proposed services either:
May be pre-approved by the Audit Committee without consideration of specific case-by-case services (general pre-approval); or |
Require the specific pre-approval of the Audit Committee (specific pre-approval). Appendices to the Pre-approval Policy (that are adopted each year) set out the audit, audit-related, tax and other services that have received general pre-approval of the Audit Committee. All other audit, audit-related, tax and other services must receive specific pre-approval from the Audit Committee. |
For the period 20202022 to 2021,2023, all services provided to Aegon by its independent public accountant were pre-approved by the Audit Committee in accordance with the Pre-approval Policy.
Annual Report on Form 20-F 2023 | 451 |
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Purchases of equity securities by the issuer and affiliated purchasers
Period | Total number of shares purchased 1) | Average price paid per share in EUR | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may yet be purchased under the plans or programs at end of month | ||||||||||||
January 1 - 31, 2021 | - | - | - | - | ||||||||||||
February 1 - 28, 2021 | - | - | - | - | ||||||||||||
March 1 - 31, 2021 | - | - | - | - | ||||||||||||
April 1 - 30, 2021 | - | - | - | - | ||||||||||||
May 1 - 31, 2021 | - | - | - | - | ||||||||||||
June 1 - 30, 2021 | - | - | - | - | ||||||||||||
July 1 - 31, 2021 2) | 20,989,001 | 3.52 | 20,989,001 | 35,933,035 | ||||||||||||
August 1 - 31, 2021 | 14,944,034 | 3.96 | 14,944,034 | - | ||||||||||||
September 1 - 30, 2021 3) | - | - | - | 21,531,927 | ||||||||||||
October 1 - 31, 2021 | 21,531,927 | 4.46 | 21,531,927 | - | ||||||||||||
November 1 - 30, 2021 | - | - | - | - | ||||||||||||
December 1 - 31, 2021 | - | - | - | - | ||||||||||||
Total | 57,464,962 | 57,464,962 |
Period | | Total number of shares purchased1) | | | Average price paid per share in EUR | | | Total number of shares purchased as part of publicly announced plans or programs | | | Maximum number of shares that may yet be purchased under the plans or programs at end of month |
| ||||
January 1 - 31, 2023 | 8,516,263 | 5.00 | 8,516,263 | - | ||||||||||||
February 1 - 28, 2023 | 5,959,061 | 5.03 | 5,959,061 | 40,838,506 | ||||||||||||
March 1 - 31, 2023 | 18,734,994 | 4.23 | 18,734,994 | 22,103,512 | ||||||||||||
April 1 - 30, 2023 | 8,605,944 | 4.08 | 8,605,944 | 13,497,568 | ||||||||||||
May 1 - 31, 2023 | 12,135,613 | 4.12 | 12,135,613 | 1,361,955 | ||||||||||||
June 1 - 30, 2023 | 1,361,955 | 4.15 | 1,361,955 | - | ||||||||||||
July 1 - 31, 2023 | 17,735,076 | 4.77 | 17,735,076 | 283,724,922 | ||||||||||||
August 1 - 31, 2023 | 33,975,519 | 4.83 | 33,975,519 | 249,749,403 | ||||||||||||
September 1 - 30, 2023 | 48,201,072 | 4.66 | 48,201,072 | 201,548,331 | ||||||||||||
October 1 - 31, 2023 | 38,502,642 | 4.54 | 38,502,642 | 163,045,689 | ||||||||||||
November 1 - 30, 2023 | 6,813,921 | 4.73 | 6,813,921 | 156,231,768 | ||||||||||||
December 1 - 31, 2023 | 25,652,916 | 5.23 | 25,652,916 | 130,578,852 | ||||||||||||
Total | 226,194,976 | 226,194,976 |
1 | Aegon intends to return EUR 1.5 billion of the cash proceeds to shareholders – barring unforeseen circumstances – through a share |
452 | Annual Report on Form 20-F 20212023
Cybersecurity | ||||
Cybersecurity
Cybersecurity Risk Management and Strategy
Aegon employs an IT security strategy and maintains a suite of systems, procedures and controls that are designed to protect the confidentiality, integrity and availability of critical systems owned or used by us as well as the information 2021 350that flows through those systems.
Our Cybersecurity risk program (1) is focused on the highest-risk assets, (2) aims to mitigate the highest risks, and (3) aims to be responsive to evolving threats based on learnings from industry security events and developments.
Cybersecurity risk management is an integral part of our IT Risk Management Framework developed as part of our IT and Cyber risk management oversight. IT and Cyber risk management is integrated into our Enterprise Risk Management (ERM) program and shares common methodologies, policies, standards, and governance processes.
Key elements of our cybersecurity risk management include, but are not limited to the following:
We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected us, including our operations, business strategy, results of operations, or financial condition.
Cybersecurity risks and threats continuously evolve and we face risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. See “Risk Factors – a perceived or actual computer system failure or security breach of Aegon’s IT systems or that of critical third parties may disrupt Aegon’s business, damage Aegon’s reputation and adversely affect Aegon’s results of operations, financial condition, and cash flows” for additional detail.
Cybersecurity Governance
Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Aegon Risk Committee (Committee) oversight of cybersecurity and other IT risks. The Committee reports directly into the Board and focuses on the effectiveness of the design, operation and appropriateness of the enterprise risk management framework and the internal control systems of Aegon.
The Committee receives regular reports from Aegon’s Chief Risk Officer covering all known material cybersecurity risks of the Company including but not limited to operational risk, technology and information security risks. In addition, management updates the Committee, as necessary, regarding significant or potentially significant cybersecurity incidents.
The Committee receives periodic updates from our Global Chief Information Security Officer. These include, but are not limited to: progress updates on cybersecurity strategy and execution against the Aegon strategic roadmap, a review of cybersecurity metrics, updates on the evolving threat landscape, and a review of our control environment.
Annual Report on Form 20-F 2023 | 453 |
![]() | About Aegon Governance and risk management Financial information Sustainability information | |||
Our management team, including our Global Chief Technology Officer, Global Chief Information Security Officer, Directors of various Security Services (e.g., Identity, Cloud, Data, SOC) along with Business Unit Security Officers (BISOs), is responsible for assessing and managing our material risks from cybersecurity threats. The team has primary responsibility for our overall cybersecurity risk management program, and is informed about cybersecurity incidents and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. Our Management team includes broad range of executive, strategic, and technical experiences across diverse number of technology and cybersecurity domains.
454 | Annual Report on Form 20-F 2023
Sustainability information 2023 456 Basis of preparation 350456 Defining content 458 Reporting process for non-financial data 350 Reporting scope 350 Defining content 352 Integration461 Our material topics 461 Our approach 462 Climate change mitigation and monitoring 352 Key performance indicators 353adaptation 465 Inclusion and diversity 467 Customer empowerment 469 Employee wellbeing 472 Data security and privacy 473 Business conduct 476 Policies and procedures 357statements 480 Regulation 357and compliance 480 EU Non-Financial Reporting Directive (NFRD) 359Directives 483 Our commitments 483 United Nations Global Compact 483 United Nations Sustainable Development Goals 483 UNEP-FI Principles for Sustainable Insurance 486 Task Force on Climate-related Financial Disclosures 486 Introduction 486 Governance 486 Strategy 492 Risk management 495 Metrics and targets 499 EU Taxonomy 499 EU Taxonomy Regulation 363 Frameworks and initiatives 363 Reporting standards (<IR> Framework) 364 Global initiatives (UNGC, SDGs, TCFD) 379 Sector-specific initiatives (PSI, IRBC) 382 Value created 382 Customers 383 Employees 386 Business partners 387 Investors 388 Society 393500 EU Taxonomy eligibility 501 EU Taxonomy alignment 506 Voluntary information 506 Introduction 506 Extra metrics 508 External recognition 394509 Disclaimer 396512 Contact Aegon Integrated Annual Report 2021 349on Form 20-F 2023 | 455
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Basis of preparation
The consolidated sustainability (non-financial) information has been prepared in accordance with the International Financialapplicable reporting requirements under the Dutch Civil Code, including the EU Non-Financial Reporting Directive (NFRD) and the EU Taxonomy Regulation. As of January 2024, the EU Corporate Sustainability Reporting Directive (CSRD) will replace the NFRD. For the report over 2024, Aegon has to comply with the disclosure requirements of the CSRD and the related legislation, namely, the European Sustainability Reporting Standards (IFRS)(ESRS).
This chapter contains a new section entitled “Our material topics”, as adopted bywhich is structured around the European Union, as well assix topics identified through the Integrated Reporting Framework (<IR> Framework)double materiality assessment (DMA). Each topic has its own section where definitions and related impacts, risks, and opportunities are disclosed, along with related policies, key performance indicators, targets, and metrics. Each topic is also mapped against the related UN Sustainable Development Goals (SDGs) to highlight Aegon’s contribution to these goals. Aegon’s actions on these topics, where
Defining content
In 2023, Aegon took further steps to prepare for the upcoming sustainability-related disclosure requirements of the International Integrated Reporting Council (IIRC). Aegon has usedCSRD and ESRS. The concept of “double materiality” is one of the <IR> Framework since 2014.
Our sustainability disclosures have been mapped to evidenceour six DMA topics and support Aegon’s overarching approach to sustainable value creation. Our value creation approach is introduced in detail under the section ‘Aegon in 2021/ Our strategy and value creation’ (pages
The information on material topics is provided mainly in the “Sharing value with our stakeholders in 2023” (pages 24-35) and long term“Our material topics” (pages 461-477) sections.
General ESRS disclosures are included in various sections of the Management report. This includes information about Aegon’s sustainability governance, which is disclosed in the “Governance and risk management 2023” section (page 51). The composition and diversity of the members of the Board of Directors and the Executive Committee can be found in the “Report of the Board of Directors” section
available, are disclosed in the “Creating sustainable value for our key stakeholder groups. Accordingly, thestakeholders in 2023” section ‘Value Created’ (page 382) is organized based on the value Aegon creates for its main stakeholder groups, namely its customers, employees, business partners, investors and society.
The chapter also contains informationincludes voluntary disclosures related to our commitments to various global and sector-specific sustainability initiatives such as the UN Global Compact (UNGC), the UNUNEP-FI Principles for Sustainable Development Goals (SDGs),Insurance (PSI) and the Task Force on Climate-related Financial Disclosures (TCFD).
Voluntary information not linked to a material topic but relevant to our sustainability approach and benchmarking is presented in the “Voluntary Information” and “External Recognition” sections (pages 506-508).
The sustainability information in this chapter of the report is part of the “Management report” as defined in Part 9 of Book 2 of the Dutch Civil Code. In this report, we use the words “non-financial” and “sustainability” interchangeably. We also use the term “ESG” when referring to environmental, social or governance risks or performance.
(page 60-61). The interests and views of our stakeholders including the engagement process are described in the “Understanding and engaging with our stakeholders” section (page 21). Our market position, strategy, and business model are described in the “Who we are” and “Our strategy” sections (pages 2-3 and 9-13).
The double materiality assessment
According to the ESRS, “a sustainability topic or information is material from an impact perspective if it is related to actual or potential, positive or negative impacts that an undertaking - in this case Aegon - has on the environment and society. A sustainability topic or information is material from a financial perspective if it triggers financial effects on Aegon, i.e., generates risks or opportunities that influence or are likely to influence the future cash flows and therefore, the UN Principlesenterprise value of Aegon”.
In 2023, we conducted our second DMA, following a four-step methodology.
1. | Understand the landscape: Desk research, which included peer analysis, media scan, high-level scan of reporting and regulatory requirements and an analysis of sustainability trends for the insurance sector. |
2. | Consultation: Harmonizing a long list of topics and preparing for stakeholder engagement, where the long list of topics that emerged from the desk research was aligned with the ESRS requirements, resulting in a medium list of topics; and identifying stakeholders to engage with. |
456 | Annual Report on Form 20-F 2023
Basis of preparation | ||||
3. Assess impacts, risks, and opportunities: Assess impact materiality and financial materiality through a survey of stakeholders representing different business units and external stakeholders. Conduct interviews with key internal and external stakeholders, including a separate workshop on financial materiality. 4. Validation, approval, and integration: Validation of the results by key internal stakeholders, endorsement of the short-listed material topics by the Global Sustainability Board, and approval by the CEO, supported by the Executive Committee. Assessment criteria For the 2023 DMA, we used the descriptions and the following assessment criteria as prescribed by the ESRS as a basis for our approach: 1. We assessed the materialityof actual and potential impacts by asking key stakeholders to prioritize the topics and rank their impacts. 2. For the assessment of financial materiality1, we gathered input on the potential risks and opportunities of a topic. We used our existing ERM methodology for scoring the impacts, consisting of financial, customer, regulatory, and reputational categories. 3. For the selection of material topics, we ranked them as highly, moderately, or less material. Those ranked as highly material from either an impact or financial materiality perspective were included in our list of material topics. We then “sense checked” the results with stakeholders through several consultations. Through this assessment, we identified six material topics. The “Our material topics” section is structured around these topics. | Comparison with previous DMA topics For our 2023 DMA, we established a methodology that builds on the process we developed for our 2022 DMA. Compared to our 2022 DMA, our two priority themes (climate change and inclusion and diversity) are again confirmed as material. Topics such as responsible investing, responsible products, and solid financial performance, which were identified as material topics in 2022, are now considered mechanisms or direct results that stem from addressing our material topics effectively. Some topics have evolved since last year. For example, talent development is an element of the wider topic of employee wellbeing, and customer experience has been sharpened to become customer empowerment. Value chain In our double materiality assessment, we have considered the impacts, risks, and opportunities (IROs) along our value chain in broad terms. We approached this through the different perspectives that define Aegon’s operations and impact areas: our underwriting role (focusing on our insurance/ products perspective), our role as an investor (emphasizing our investment perspective), and our role as a responsible company (highlighting our own operational practices and supply chain). The scope of the sustainability information disclosed in this report includes both upstream and downstream actors in the value chain, where possible and where information is available. For example, our climate change disclosures cover our own operations as well as our investments. The following table illustrates our value chain. In 2024, we will continue to refine the definition of our value chain and further mature the assessment of material topics within the value chain. |
Position in value chain | Value chain dimension | Value chain element | ||
Upstream | Suppliers | Supply chain | ||
Aegon | Own operations | Workforce | ||
Real estate | ||||
Sponsorships and partnerships, community investment | ||||
Downstream | Underwriting | Customers | ||
Distribution, claims, and underwriting process | ||||
Joint ventures and associates | ||||
Investments and asset management | Investments | |||
Joint ventures and associates | ||||
Third-party investments |
Next steps
Over the next year, we will continue to develop the material disclosures, as necessary, to meet the ESRS requirements. Where action is required on material topics, this will be integrated into our sustainability approach and other mechanisms. In 2024, we will continue to mature
the processes we follow as part of our DMA approach. In particular, we will refine our approach to assessing double materiality within the value chain. We will also enhance our stakeholder engagement strategy to improve our engagement with key external stakeholders.
1 | This assessment of financial materiality is informed by relevant European laws and standards, it may not always align with the definition under US securities laws. |
Annual Report on Form 20-F 2023 | 457 |
![]() | About Aegon Governance and risk management Financial information Sustainability information | |||
Reporting process
The qualitative sustainability information disclosed has been compiled based on the DMA output and through dedicated interviews with internal subject matter experts.
Quantitative sustainability information is maintained in different information systems throughout the organization. The information has been collected and aggregated at group-level through an online data collection tool. All data has been reviewed and validated by dedicated subject matter experts at Aegon. To prepare for Sustainable Insurance (PSI),limited assurance for the financial year 2024, we have documented all material sustainability reporting processes and key controls. This year’s sustainability information has not been subject to an external audit or review.
In 2023, we further enhanced our Sustainability Reporting Program. The program aims to meet evolving regulatory requirements, provide data for sustainability performance benchmarks, and support our sustainability approach and other sustainability commitments. Responsibility for sustainability reporting is a collaboration between Aegon’s Global Corporate Sustainability Team and our Finance function. Finance are tasked with collecting sustainability and ESG data, establishing processes and controls, and implementing robust reporting tooling. This collaboration aims to prepare Aegon for limited assurance on sustainability information, as wellrequired from 2024 under the CSRD.
Estimations
Estimations (i.e. assumptions or extrapolations) may be applied where data is incomplete or unavailable. For the 2023 reporting year, the following significant estimations have been made:
∎ | EU Taxonomy eligibility and alignment assessment (please see “EU Taxonomy” section on page 500) |
∎ | Investment carbon footprint: we use extrapolation for the weighted average carbon intensity when underlying carbon data is not available. The availability of data for this indicator is expressed as a coverage ratio, as disclosed in the Task Force on Climate-related Financial Disclosures (TCFD; pages 484-498) and “Climate change mitigation and adaptation” section (pages 462-464). For Aegon UK, there was no disclosed data coverage for the 2019 baseline. An assumption was made to extrapolate based on a comparable level of data coverage in line with subsequent years. For direct real estate investments, relative intensity is calculated based on the floor space with carbon data available (sqm). Additionally, the data coverage % for direct real estate only includes those properties with available floor space data. |
∎ | Operational energy consumption (gas and electricity) and associated GHG emissions: we extrapolate by floor area in cases where we are missing data on energy use. |
∎ | For business travel by car: where we do not have the information to specify between cars running on electricity or fossil fuel, we assume they are using fossil fuel. |
∎ | For energy consumed by employees classified as permanent home workers: we extrapolate by using the total headcount and the energy intensity for our overall office space. |
458 | Annual Report on Form 20-F 2023
Basis of preparation | ||||
Revisions of comparative information required by regulatory authorities such
When compiling and disclosing sustainability data, reclassifications of prior years’ data may be applied to align with changing circumstances in the 2023 reporting year. Such circumstances might include, but are not limited to, changes in the definitions of data, refining the methodology for data approximation, and exclusion of data from divested businesses. For the 2023 reporting year, the following main revisions have been made:
∎ | As a result of the combination of Aegon the Netherlands with a.s.r. on July 4, 2023, we have excluded the data relating to Aegon the Netherlands from the 2023 figures. Where possible and relevant, data from 2022 has been restated to enable a comparison between 2023 and 2022. The following 2022 indicators were not restated: |
∎ | Number and proportion of women in senior management (reported under “Inclusion and diversity”) |
∎ | Global Employee Survey (GES) results and participation rate (reported under “Employee wellbeing”) |
∎ | Ratio of CEO compensation to average compensation (reported under “Employee wellbeing”) |
∎ | Proportion of compliance with the Global Remuneration Framework (reported under “Employee wellbeing”) and Anti-bribery and Conflict of interest policy requirements (reported under “Business conduct”) |
∎ | Systematic Integrity Risk Assessment (SIRA) (reported under “Business conduct”) |
∎ | Responsible tax (reported under “Business conduct) |
∎ | Metrics relating to “Responsible investment solutions” (RIS) and “Engagement and voting” (reported under “Voluntary information”) |
∎ | Although our divested Eastern European businesses were excluded from our 2022 reporting, Poland and Romania were nevertheless included in the total number of customers for 2022 (reported under “Customer empowerment”). To enable a comparison, we have restated the 2022 figure of “Total customers” in the 2023 Integrated Annual Report to exclude customers from Poland and Romania. |
∎ | Total GHG emissions per EURm revenue: the definition of revenues has changed under IFRS 17. For this metric, we now use total revenues, excluding joint ventures and associates, as presented in the segment results table in the financial statements under “Segment total”. We have restated the 2022 figure based on this new definition of total revenue to enable a comparison. |
∎ | Until the end of 2022, customer satisfaction was measured centrally using the benchmarked Net Promoter ScoreSM (NPS®) metric. In 2023, customer satisfaction in the United States was measured through RepTrak and in the United Kingdom through the relationship Net Promoter ScoreSM (NPS®) metric. For more details, see the footnote under the customer satisfaction metrics (reported under “Customer empowerment”). |
∎ | The absence rate excludes Transamerica employees, as this type of absence is not registered in the United States but combined with annual leave. The 2022 balance did include an estimate for Transamerica’s absence. To make a comparison possible, we restated 2022 to exclude Transamerica. |
Reporting scope
Unless otherwise stated, the disclosed sustainability information (qualitative and quantitative) covers the same period as the EU
The scope of sustainability data includes all consolidated entities similar to the section ‘Value created’ (page 382).
The table ‘Reporting scope“Disclosure by operating segment’segment” table provides an overview of the scope of
Annual Report on Form 20-F 2023 | 459 |
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Disclosure by segments
Indicators per material topic | Segment | |||||||||||||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||
Climate change | ||||||||||||||||||||||||
Investment footprint | 🌑 | 🌑 | 🌑 | 🌑 | – | 🌑 | ||||||||||||||||||
Operational footprint | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Inclusion and diversity | ||||||||||||||||||||||||
Diversity | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Work-related incidents | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Diversity among senior management | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Customer empowerment | ||||||||||||||||||||||||
Total customers and news customers | 🌑 | 🌑 | 🌑 | 🌑 | – | 🌑 | ||||||||||||||||||
Customer satisfaction | 🌑 | 🌑 | 🌑 | – | – | 🌑 | ||||||||||||||||||
Customer complaints | 🌑 | 🌑 | 🌑 | – | – | 🌑 | ||||||||||||||||||
Significant mis-selling fines | 🌑 | 🌑 | 🌑 | 🌑 | – | 🌑 | ||||||||||||||||||
Pricing and product development (policy compliance) | 🌑 | 🌑 | 🌑 | – | – | 🌑 | ||||||||||||||||||
Employee wellbeing | ||||||||||||||||||||||||
Number of employees | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Direct employees | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Non-employees | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
New employees, leavers, and turnover | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Performance and development reviews | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Employee engagement | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Investment in training and career development | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Collective bargaining | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Compensation and benefits | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Absenteeism | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Family-related leave | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Data security and privacy | ||||||||||||||||||||||||
Information security training and phishing-awareness | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Data privacy training | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Business conduct | ||||||||||||||||||||||||
Code of conduct attestation | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Policy compliance and Systematic Integrity Risk Assessment | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Fraudulent activity | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
Responsible tax | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||||||||
🌑 reported
🌑 not reported
– not applicable
460 | Annual Report on Form 20-F 2023
Indicator topics by stakeholder | Operating segment | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||
Customers | ||||||||||||
Number of customers | ● | ● | ● | ● | ● | – | ||||||
Customer satisfaction | ● | ● | ● | ¡ | – | – | ||||||
Complaints | ● | ● | ● | ● | – | – | ||||||
Fines and settlements | ● | ● | ● | ● | ● | ● | ||||||
Claims, benefits and plan withdrawals | ● | ● | ● | ● | ● | – | ||||||
Employees | ||||||||||||
Workforce | ● | ● | ● | ● | ● | ● | ||||||
Inclusion and diversity | ● | ● | ● | ● | ● | ● | ||||||
Recruitment and retention | ● | ● | ● | ● | ● | ● | ||||||
Health and safety | ● | ● | ● | ● | ● | ● | ||||||
Training and development | ● | ● | ● | ● | ● | ● | ||||||
Employee engagement | ● | ● | ● | ● | ● | ● | ||||||
Remuneration | ● | ● | ● | ● | ● | ● | ||||||
Business partners | ||||||||||||
Brokers and intermediaries | ● | ● | ● | ● | ● | – | ||||||
Reinsurers | ● | ● | ● | ● | ● | – | ||||||
Goods and services | ● | ● | ● | ¡ | ● | ● | ||||||
Investors | ||||||||||||
Corporate governance | ● | ● | ● | ● | ● | ● | ||||||
Financial returns | ¡ | ¡ | ¡ | ¡ | ¡ | ● | ||||||
Society | ||||||||||||
Responsible investment | ● | ● | ● | ● | ● | ● | ||||||
Investment footprint | ● | ● | ● | ● | ● | – | ||||||
Tax transparency | ● | ● | ● | ● | ● | ● | ||||||
Community investment | ● | ● | ● | ● | ● | ● | ||||||
Compliance | ● | ● | ● | ● | ● | ● | ||||||
Operational footprint | ● | ● | ● | ● | ● | ● | ||||||
![]() | Our material topics | |||
Our material topics
Our approach
Sustainability topics are moving up the corporate agenda. For Aegon, this means integrating sustainability issues into its business in a meaningful way in order to meet the expectations of relevant stakeholders across its value chain and monitoring
In 2023, our sustainability as a central pillar withinapproach focused primarily on our company strategy. Guided by our purpose, we aim to create long-term value for our stakeholders through the integration of sustainability in our strategy. We have identifiedtwo priority themes – climate change and inclusion and diversitydiversity. The structure of our non-financial reporting for 2023 is wider, encompassing the six topics identified by our DMA process. For these topics, we have already begun the process of identifying policies, metrics, and (where they are already in place) targets.
Through Aegon’s sustainability approach and other delivery mechanisms, as two strategic sustainability priorities thatnecessary, we will continue to embed these topics within the business and develop our approach as sector-specific guidance on the implementation of the CSRD becomes available.
For each material topic, the following aspects are particularly critical issues,presented: related sub-topics, definitions, related impacts, risks, and they will guideopportunities, as well as related policies, key performance indicators, targets, metrics (where available) and Aegon’s contribution to the SDGs. As part of our sustainability agendapreparations for the CSRD, we have listed metrics and KPIs under each of the material topics. These are not yet fully reflective of ESRS and include a mix of ESRS and entity-specific disclosures. Aegon’s actions in relation to these material topics are disclosed in the years to come.“Creating sustainable value for our stakeholders in 2023” section (pages 20-35). A “Policies and Statements” table is included at the end of this section, where each policy is explained in detail.
Annual Report on Form 20-F 2023 | 461 |
![]() | About Aegon Governance and risk management Financial information Sustainability information | |||
Climate change mitigation and adaptation
Definition
“Climate change mitigation” refers to the process of reducing greenhouse gas (GHG) emissions and keeping the increase in the global average temperature to well below 2 °C and pursuing efforts to limit it to 1.5 °C above pre-industrial levels, as set out in the Paris Agreement. “Climate change adaptation” refers to the process of adjusting to actual and expected climate change and its impacts.
Sub-topics
∎ | Investment footprint, including engagement with investee companies |
∎ | Operational footprint, including energy use |
Impacts, risks, and opportunities
Aegon has an impact on climate change mitigation primarily through its investment portfolio. Aegon has identified two main risks regarding climate change mitigation that could have a significant to severe impact on Aegon, namely the exposure of the investment portfolio to both physical and transition risks caused by a lack of mitigation. The transition risks come from the potential sensitivity of our investment portfolio to rapid implementation of climate policies, changes in investor preferences, costs of non-compliance or technological disruptions. The physical risks are due to the impact of climate change on global supply chains or physical assets. Climate change will also have other indirect impacts on public health and longevity in the medium to long term.
There are also significant opportunities arising from climate change mitigation, such as investing in the technology and infrastructure needed to transition away from carbon emissions, including renewable energy sources, low-carbon properties, low-carbon heating, electrification of transport, and nature-based solutions.
To mitigate its impact and capitalize on opportunities, Aegon is investing in line with our company strategy, we have identified key performance indicators to measure our
markets (measured in NPS) is in line with or above the average of those of our peers. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
measured through our Global Employee Survey. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
management for 2022. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aegon’s impact on climate change adaptation is shaped by how Aegon invests within its existing portfolio and how it approaches future portfolio allocation/asset selection decisions. The main risks identified by Aegon regarding climate change adaptation are, again, related to physical and transition risks, such as the potential impact of extreme weather events on direct operations, infrastructure, assets, and supply chains. Climate change mitigation and adaptation also means actively engaging with the companies in which Aegon invests. Additional information on climate change related risks and opportunities is disclosed in the TCFD section (page 486-498). Policies and commitments Our Group Responsible Investment Policy and Net-Zero Asset Owner Alliance (NZAOA) membership provide a framework and guide our steps on climate change mitigation at the portfolio level. These steps involve assessing the feasibility of our established targets, actively engaging with companies in which Aegon invests, and potentially divesting from sectors with particularly negative impacts.
462 | Annual Report on Form 20-F 2023
SDGs We are committed to contributing to three UN SDGs and their targets related to climate change: 7. Affordable and clean energy Ensure access to affordable, reliable, sustainable, and modern energy for all. Target 7.2 Increase substantially the share of renewable energy in the global energy mix. Target 7.3 Double the global rate of improvement in energy efficiency. 9. Industry, innovation, and infrastructure Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. Target 9.4 Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities. 13. Climate action Take urgent action to combat climate change and its impacts. Target 13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries. 464 | Annual Report on Form 20-F 2023
Inclusion and diversity Definition Providing all employees with a safe and fulfilling work environment where people treat each other with respect and dignity. Providing equal opportunities means that employees are selected solely on the basis of their ability to do the job and that there is no distinction, exclusion, or preference made on other grounds, either during the recruitment process or after. Promoting inclusion and diversity in the value chain. Sub-topics
Impacts, risks, and opportunities Aegon’s vision is to have impact on inclusion and diversity (I&D) by building a fair and inclusive company, where we overcome obstacles to participation and increase our diversity so that everyone belongs and plays a role in fostering inclusion. Our global inclusion and diversity strategy sets out policies and actions for all parts of Aegon to make an active contribution to building a more inclusive and diverse organization through a consistent and coherent way of working across the whole company. Aegon’s inclusion and diversity strategy is led from the top, with Aegon’s senior leadership serving as role models for I&D. They achieve this by sharing their own inclusion stories and actively championing areas of diversity excellence. We focus on five core areas pertinent to our workforce and customers: disability, sexual orientation, gender balance, life stages, and race/ethnicity. Currently our efforts are directed toward addressing the gender imbalance that persists in financial services by refining our hiring practices with a focus on inclusive recruitment, gender diversity within senior management, addressing gaps in our diversity data, and building an inclusive culture. The main risks and opportunities identified by Aegon in relation to inclusion and diversity are Aegon falling behind its peers in terms of customer understanding and talent attraction (business and reputational risk). Furthermore, with the rapid development of artificial intelligence (AI), there is an increasing risk of unintentional discrimination or bias, which could result in damage to (prospective) customers, as well as reputational and financial damage. By welcoming a broader range of perspectives into our workforce, we increase the opportunity to unlock new customer segments from historically underserved communities. We also become a more attractive employer, increasing the chances of securing the best talent for our business. Diversity and the ability to speak up also help us balance our risk profile and continue to support the long-term sustainability of our business. Policies and commitments
Key performance indicator(s) and target(s)
In this context, senior management includes individuals up to two levels below the CEO (three levels for Corporate Center), provided they have direct reports. If the person has no direct reports, but the job title indicates the required seniority, the individual is also considered part of senior management. People working in the “administration” group are excluded from the list, unless their job title indicates the required seniority.
Metrics
SDGs We are committed to contributing to two UN SDGs and their targets related to inclusion and diversity: 5. Gender equality: Achieve gender equality and empower all women and girls. Target 5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life. 10. Reduced inequalities: Reduce inequality within and among countries. Target 10.2 Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status. Target 10.4 Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. 466 | Annual Report on Form 20-F 2023
Customer empowerment Definition Helping people to live healthy, sustainable lives, and delivering long-term value to our customers by expanding and tailoring our offering to customers’ evolving needs, promoting financial literacy and the financial inclusion of underserved groups. This includes product innovation and social inclusion of our customers, for example by enabling individuals to save for their own retirement, thereby reducing their reliance on public pension systems. It also entails responsible marketing practices, providing transparent product information, fair pricing of products, and offering high levels of customer service, designed around customers’ changing needs. Sub-topics
Impacts, risks, and opportunities Aegon has a direct positive impact on its customers by offering a range of investment, retirement, and protection solutions. These encompass workplace and individual solutions, covering life insurance, long-term savings options, pension, and annuity solutions, and mortgages. These offerings work together to ensure the financial security of customers, thereby contributing to their overall financial wellbeing. This, in turn, supports their longevity, physical health, and mental wellbeing. Aegon does this by providing transparent information about our products and promoting financial education, enabling customers to make well-informed decisions about their financial futures. This is where Aegon has one of its greatest impacts, due to the size of the customer base and the number of people it can potentially influence. In its role as a financial institution, Aegon also has the potential to foster positive change through financial inclusion. Bridging gaps in access to financial products can be achieved by incorporating inclusion and diversity principles into product development and strategy. This approach can particularly benefit underserved groups, ethnic minorities, and reduce the gender pension gap. Additional aspects, such as fair pricing and responsible marketing, can contribute to customer empowerment. The main risks identified by Aegon are not attracting potential new customers or losing existing ones by not offering products or services in an appealing way to customers. On the other hand, offering more individualized products can reach a wider consumer base, leading to growth and increased market share, which are opportunities. However, the opportunities for individualized products may be limited by ethical issues such as privacy. As both a pension and life insurance provider, changing demographics have impacts for Aegon. For example, a healthier customer base and the provision of preventative services (for example, offering a free cancer scan to high-risk professionals), could lead to increased longevity whereas an unhealthier population will result in higher mortality. There is also an opportunity to embed I&D in product development, in order to provide financial inclusion to underserved segments of society. For example, products that specifically target women and communities traditionally not targeted by the financial services sector. Policies and commitments
Key performance indicator(s) and target(s)
Until the end of 2022, customer satisfaction was measured using two KPIs, namely “Significant fines to address cases of mis-selling” and “Net Promoter Score(SM) (NPS®)”. From 2023, we will continue to measure customer satisfaction through the KPI “Significant fines to address cases of mis-selling”, which includes any fines for mis-selling in excess of EUR 100,000.
Metrics
SDGs We are committed to contributing to two UN SDGs and their targets related to customer empowerment: 3. Good health and wellbeing Ensure healthy lives and promote wellbeing for all at all ages. Target 3.8 Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all. 8. Decent work and economic growth Promote sustained, inclusive, and sustainable economic growth, full and productive employment and decent work for all. Target 8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all. 468 | Annual Report on Form 20-F 2023
Employee wellbeing Definition Creating a work environment that promotes a state of contentment that allows employees to thrive and achieve their full potential for the benefit of themselves and their organization. It covers talent management, working conditions, and employee engagement. Sub-topics
Impacts, risks, and opportunities Aegon’s actual positive and negative impacts are spread across various dimensions of talent management and working conditions. These include recruitment and retention, the performance and development cycle, education and training, compensation and benefits, engagement, and the physical and mental health and wellbeing of employees. Aegon aims to amplify its potential impact, contribute to meaningful and fulfilling careers for both young and older talent, and embody the characteristics of a modern and responsible employer. It also includes enhancing employee engagement, creating a vibrant and supportive work environment, providing wider benefits, helping employees to live their best lives and live Aegon’s purpose, promoting physical and mental wellbeing, and fostering entrepreneurial spirit in the company. The main risks identified by Aegon are difficulties in retaining and attracting employees due to a lack of flexibility, quality and relevance of work, career path, and competitive compensation and benefits. In addition to the loss of the human capital itself, a lack of talent could lead to dissatisfied customers and greater pressure on the existing workforce. Furthermore, low employee engagement can affect performance, which can lead to poor customer experience and a lack of innovation. Finally, the lack of availability of qualified staff is exacerbated for insurers competing for skilled talent not just with peers but also with other industries (business risk). By offering strong compensation programs and flexible working policies (hybrid and remote), and by investing in talent attraction, retention, training, and skills development, Aegon is able to create attractive prospects for existing and future employees and contribute to overall engagement and employee development. Policies and commitments
Key performance indicator(s) and target(s)
The Global Employee Survey is provided through Culture Amp®. All employees, including those in joint ventures, participate in the survey on a voluntary basis. Employee engagement is measured on a five-point scale (strongly disagree to strongly agree), and it is the average score of four statements:
In 2023, three ![]()
Metrics
470 | Annual Report on Form 20-F 2023
SDGs We are committed to contributing to two UN SDGs and their targets related to employee wellbeing: 3. Good health and wellbeing Ensure healthy lives and promote wellbeing for all at all ages. Target 3.4 Reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and wellbeing. 8. Decent work and economic growth Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. Target 8.5 Achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
Data security and privacy Definition Data security entails preserving the confidentiality, integrity, and availability of information assets of Aegon and its customers. It also includes ensuring the data privacy of Aegon’s employees, customers, and other stakeholders. Sub-topics
Impacts, risks, and opportunities Data security and privacy is considered a key aspect of Aegon’s business, and Aegon has a duty to uphold strong cybersecurity and privacy measures. Aegon has various policies, procedures, and a set of information security requirements metrics to secure and protect data and to meet regulatory requirements (for example, privacy). Aegon is making a positive impact on this topic by protecting customer and employee data and establishing robust governance designed to prevent cyber issues and minimize the impact of any potential data breach. A breach of data privacy or security obligations may disrupt Aegon’s business, damage Aegon’s reputation, and adversely affect its financial condition and the results of its operations. Aegon’s businesses are subject to various laws and regulations relating to the privacy and/or information security of customers, employees, or others. Aegon relies on a variety of processes and controls to protect confidentiality, integrity, and availability of personal information and other confidential information. If Aegon fails, or its third-party providers fail, to maintain adequate processes and controls or fail to comply with relevant laws and regulations, inappropriate disclosure or misuse of personal information could occur. For more information on Data security and privacy risks, see the Risk factors section on pages 420-426. Advances in data management, analytics and AI are important considerations for Aegon. Data is an asset that helps us support our customers’ needs and preferences in terms of products and services through data-driven decision-making and leveraging emerging technologies. Robust data management and controls are a core foundation for leveraging these capabilities while ensuring we remain within our risk tolerances. Policies and commitments
SDGs We are committed to contributing to one UN SDG and its target related to data security and privacy: 16. Peace, justice, and strong institutions Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels. Target 16.10 Ensure public access to information and protect fundamental freedoms, in accordance with national legislation and international agreements. 472 | Annual Report on Form 20-F 2023
Business conduct Definition Conducting business ethically, with integrity and transparency, includes anti-corruption and anti-bribery measures, and protection for whistleblowers. Corruption is the abuse of power for private gain. Bribery is a form of corruption, and is defined as the offering, giving, receiving, or soliciting of anything of value to improperly influence the actions of another, whether a government official (public bribery) or a private party (commercial bribery). It also covers measures to prevent doing business with people or parties who may be involved in financial crimes. Whistleblowing mechanisms enable individuals to raise concerns about wrongdoing or breaches of the law in the organization’s operations or business relationships, regardless of whether the individuals themselves are harmed or not. Protection means without fear of retaliation. Responsible tax means being transparent about paying the right amount of tax in the right place. Sub-topics
Impacts, risks, and opportunities Business conduct is a fundamental area where Aegon can make an impact. The subject is heavily influenced by legal requirements and includes aspects such as business ethics, anti-corruption and bribery, whistleblower protection, and responsible tax. At its core, Aegon makes a positive actual impact internally by aligning itself with international governance frameworks and implementing robust policies and procedures to ensure ethical business decisions that cater to stakeholders’ interests. This commitment also involves providing a safe environment for individuals to raise concerns regarding potential misconduct. Externally, Aegon has a positive influence throughout its wider value chain by implementing responsible investment and sourcing policies and managing relationships with various partners, including investee companies, customers, and suppliers. Another aspect of business conduct pertains to corporate culture and enhancing transparency, which includes being clear about Aegon’s products and activities. Business conduct is a fundamental and already well-established element within the business, with a well-established Code of Conduct and regular training on business conduct topics. Trust, transparency, and accountability are necessary for fostering long-term investment, financial stability, and business integrity. For example, the publication of a Global Tax Report provides stakeholders with a comprehensive overview of our approach to tax and our tax contributions on a country-by-country basis. Aegon has identified the following risks associated with doing business in a rapidly changing and highly politicized and regulated landscape.
Ensuring good governance and strengthening internal control and risk management systems can turn these risks into opportunities. For example, by paying close attention to business conduct and risk management, we can proactively manage the risks associated with issues such as money laundering, bribery and corruption, and anti-competitive behavior, forging better relationships with stakeholders by building a reputation for taking action on business conduct and enhancing trust in the Aegon brand; engaging with investee companies, governments, and stakeholders to jointly encourage good business conduct, for example through the Vendor Code of Conduct. Policies and commitments
474 | Annual Report on Form 20-F 2023
SDGs We are committed to contributing to one UN SDG and its target related to business conduct: 16. Peace, justice and strong institutions Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels. Target 16.6 Develop effective, accountable and transparent institutions at all levels.
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Policies and statements Aegon is committed to doing business responsibly. The following table demonstrates the policies and statements related to our material topics as identified through the DMA. Where the policies and statements are available externally, a link to Aegon’s website is provided as well as a link to the relevant principles of the UN Global Compact.
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476 | Annual Report on Form 20-F 2023
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Policies and statements related to other topics are also included as a separate table below.
478 | Annual Report on Form 20-F 2023
Human Rights Aegon has an externally published Statement on Human Rights, which represents our overarching position and Aegon’s Statement on Human Rights is based on the Universal Declaration of Human Rights, core standards of the International Labour Organization (ILO), and In addition to our Human Rights Statement, human rights considerations are built into Aegon’s Responsible Investment Policy, Vendor Code of Conduct, and Statement on Aegon UK also issues a modern slavery statement (in line with the UK government’s 2015 Modern Slavery Act). Indicators Results of Aegon’s biennial global Human Rights Risk Assessment (conducted internally and based on external sources). The assessment scores Aegon’s countries against a combination of 10 publicly available indicators including: Civil and political rights, Corruption, Human development, Health coverage, Property rights, Illicit economy, Gender development, Working conditions, Rule of law, and Internet inclusion. Outcome / Performance 2023 In 2022, we carried out our biennial Human Rights Risk Assessment (HRRA). Aegon also annually assesses ethics and culture via the Systematic Integrity Risk Assessments (SIRA), part of which is to The findings from these assessments indicate that the operating environment of most Aegon units poses little or no significant human rights risk. In the Americas, corruption is a Compliance and
Regulation and compliance Around the world, governments are passing According to the SFDR, financial market participants should disclose information on EU Non-financial non-financial reporting, hereafter referred to as the EUNon-Financial Reporting Directive by two decrees. The NFRD requires rights, bribery, and anti-corruption, as well as to disclose information on board diversity. Aegon is required to publish non-financial (sustainability) information in a (consolidated)non-financial statement. To this end, the table ![]() From January 1, 2024, the CSRD will replace the NFRD and will apply to Aegon’s 2024 Annual Report 480 | Annual Report on Form 20-F 2023
EU Non-Financial Reporting Directive (NFRD) requirement1)
482 | Annual Report on Form 20-F 2023 ![]()
Our commitments Aegon applies over-arching and sector-specific global sustainability frameworks and initiatives, both to align with and to report against its sustainability strategy, policies, and performance. We understand that we cannot achieve our sustainability ambitions on our own. We are therefore contributing towards a number of over-arching international initiatives, including the United Nations Global Compact (UNGC), the UN SDGs, and the Task Force on Climate-related Financial Disclosures (TCFD). These initiatives guide our internal practices and policies and help shape our overall approach to sustainability. In addition, Aegon has signed up and committed to sector-specific initiatives, including the UNEP-FI Principles for Sustainable Insurance, and the Principles for Responsible Investment (PRI). A full list of our commitments is available on our website. Net-Zero Asset Owner Alliance Aegon became a member of the Net-Zero Asset Owner Alliance in 2021. The NZAOA is a UN-convened group of institutional investors committed to transitioning their portfolios to net-zero greenhouse gas emissions by 2050. As a member, we have committed to transitioning our general account investment portfolio1 to net-zero greenhouse gas (GHG) emissions by 2050, with clear medium-term targets for 2025. For more information on our targets please see page 16. United Nations Global Compact In 2021, Aegon became a signatory of the UNGC, thereby committing to implement universal sustainability principles in the fields of human rights, labor, environment, and anti-corruption, as well as taking steps to support the UN goals; currently the SDGs. As a signatory, Aegon is committed to disclosing its progress annually via a Communication on Progress (COP) submission, which can be accessed here. United Nations Sustainable Development Goals In 2015, the United Nations adopted 17 SDGs. These goals cover poverty reduction, education, gender equality, climate change, and health. Accompanying each of these goals is a series of targets and indicators. At Aegon, we are committed to supporting the UN SDGs, both as a financial services provider and as an investor. We recognize that sustainable development is in the long- term interest of business and the global economy, but that a sustainable future for people and the planet will not be attainable without cooperation between the public and private sectors. We have linked our contributions to the SDGs relating to our material topics in the “Our material topics” section. UNEP-FI Principles for Sustainable Insurance Aegon is one of the founding signatories of the UNEP-FI PSI. The aim of the PSI is to make sure sustainability becomes “business as usual”. The PSI comprises four basic principles. As a signatory, Aegon reports annually on the actions taken to implement the PSI’s four principles on its website. The following table summarizes actions taken towards implementing the principles in 2023.
484 | Annual Report on Form 20-F 2023
Task Force on Climate-related Financial Disclosures Introduction Climate change represents one of the biggest risks to society, the economy, and financial institutions. Mitigating climate change, including the reduction of greenhouse gas (GHG) emissions, and adapting to climate change are major global challenges. The present disclosure builds on earlier disclosures made since 2017. It is made on behalf of Aegon Ltd., an international financial services group, as both an asset owner and an asset manager. Similar to previous years, it follows the Task Force on Climate-related Financial Disclosures (TCFD)’s four-pillar framework to facilitate disclosure. It also details progress on targets Aegon has set in line with its Net-Zero Asset Owner Alliance (NZAOA) membership. Aegon strives to continuously enhance its reporting and business practices and welcomes feedback from stakeholders on the appropriateness and relevance of this disclosure. Governance Aegon’s Board of Directors has ultimate oversight over climate-related risks and opportunities. Through its Nomination and Governance Committee, the Board of Directors is advised and kept appraised of business and regulatory developments regarding sustainability, including climate change. An update is provided at least once per year on Aegon’s sustainability approach, which includes climate change as a priority theme. The CEO, supported by the Executive Committee, is responsible for annually approving the double materiality assessment process, including related climate considerations, and setting Aegon’s broader sustainability strategy via Aegon’s sustainability approach. The CEO and Executive Committee receive at least an annual update on progress made against the approach and the climate ambitions included therein. They are also responsible for approving any additional climate ambitions and targets that are set at the group level. The Global Sustainability Board (GSB) advises the Executive Committee on Aegon’s strategic sustainability approach, including climate change as a priority theme, and meets quarterly. The GSB is supported by the Corporate Sustainability Team. The GSB is a senior management committee, established in December 2021 to enhance overall governance and oversight of Aegon’s company-wide approach to sustainability. It monitors progress made on climate targets and ambitions on a quarterly basis and, if insufficient progress is made, the GSB can escalate this to the Executive Committee. The GSB is chaired by the CEO of the Americas and consists of senior-level representatives from across the company, including five members of the Executive Committee. The GSB is supported by local sustainability boards across Aegon’s business units. From a risk perspective, the Group Risk & Capital Committee (GRCC) oversees Financial Risk Management’s climate scenarios that analyze the potential impacts of climate change on Aegon’s financial accounts. The Non-Financial Risk Committee (NFRC) oversees Risk Governance’s annual climate risk assessment that identifies possible physical and transition risks that could impact Aegon. Strategy At a company-wide level, Aegon identifies the key risks and opportunities related to climate change through its overarching risk processes and through engaging with its key stakeholders, including customers, employees, investors, suppliers, and other business partners. The findings of these stakeholder engagements are captured in Aegon’s double materiality assessment, which identifies the most material sustainability topics (based on a double materiality lens), including climate change mitigation and adaptation, and the corresponding key risks and opportunities. Subsequently, Aegon prioritizes climate issues in its global sustainability approach. This approach prioritizes goals and targets with corresponding action plans and is then translated into 486 | Annual Report on Form 20-F 2023
Aegon’s regular three-year strategy and financial planning process called the Budget and Medium-Term Plan (B/MTP). Risks Our strategic approach The relevant timeframe for climate change developments stretches from the short-term – where society is already feeling the impacts of climate change – to the medium- and long-term horizon, with a dependency on GHG emission pathways. This creates the challenge of assessing the relevance of, in particular, the far-out developments to the generally shorter-term organizational strategy timeframe, which, in the case of Aegon, are closely linked to our three-year B/MTP cycle. Complicating factors for the assessment include differing potential climate change pathways, as well as data availability. One of the ways we assess climate-related risks is by conducting a qualitative company-wide climate risk assessment (CRA) that categorizes risks into four occurrence timeframes: imminent, near future (1-5 years), middle future (5-10 years), and distant future (>10 years). Our CRA shows that climate risks are most relevant for our investment and operational risk categories and are expected to increasingly occur in the near- to middle-future. These risks have the potential for significant impact, such as asset devaluation or stranded assets in the case of investment risk; or mis-selling of products in the case of operational risk, with moderate possibilities for mitigation. From an underwriting risk perspective, climate-related risks have been identified in possible changes to future rates of mortality and morbidity. Aegon’s insurance products can have exposures to both an increase or decrease in these rates. At the same time, climate change can also lead to an increase or decrease in these rates, and impacts from climate change can therefore have both positive or negative financial consequences for Aegon. It is possible to distinguish between short-term and long-term risks, where short-term risks are driven by large catastrophic events that cause many deaths, long-term risks can lead to gradual changes in average mortality and morbidity rates over time. From a financial risk perspective, we quantitatively assess climate scenarios and their impacts on our investment portfolio using a 2050 timeframe, in line with the Paris Agreement. This is detailed in the following sections. Approach to quantitative climate risk assessment Aegon conducts an extensive and systematic quantitative climate risk assessment on an annual basis. The scope of this assessment covers our insurance business units1, encompassing both general account (GA) and separate account (SA) assets2. To conduct the 2023 annual assessment, Aegon continued its collaboration with Ortec Finance, using the company’s Climate MAPS solution, a scenario-based tool. This assessment consists of different stages (listed in order of sequence):
The first three stages above form part of Ortec Finance’s Climate MAPS solution with the final mapping stage conducted by Aegon. Climate pathways For our climate risk assessment, we consider four plausible climate pathways which are as follows:
Global temperature change (°C) 488 | Annual Report on Form 20-F 2023
Macroeconomic modeling The climate pathway assumptions drive macroeconomic changes per region and sector (e.g. GDP, inflation, and sector GVA). These changes/impacts are measured versus a climate-uninformed baseline outlook. As an example, in the “Cumulative US GDP impacts and contribution by year, risk driver, and pathway“ graph, the projected cumulative impact on US GDP is shown for each pathway, together with the risk driver contribution from transition risks (i.e. policy & technological changes) and physical risk (i.e. gradual impact and extreme weather events). It illustrates firstly the greatest ultimate cumulative GDP impacts for the High Warming (HW) pathway and the Limited Action (LA) pathway. In these pathways we notice physical risks are particularly prominent with gradual physical risk impacts increasing significantly over time. In the Net Zero and Net Zero Financial Crisis (NZ & NZFC) pathways that follow, the ultimate cumulative GDP impacts are smaller having successfully transitioned to a net-zero world by 2050. Nevertheless, locked-in physical impacts still emerge in these pathways. Cumulative US GDP impacts and contribution by year, risk driver, and pathway Risk driver ∎ Extreme Weather ∎ Gradual Physical ∎ Transition ∎ Sentiment Shock Financial modeling The next step in the modeling involves employing financial modeling to translate the macroeconomic impacts to financial variables and capture pricing dynamics. In particular, Climate MAPS translates climate-GDP/GVA and CPI shocks over time to 600+ financial and economic variables. These variables have a high degree of granularity differing by country/sector/ year for each pathway. As an example, in the graph “US equity impact by year and pathway”, the projected cumulative impact on US Equities is shown for each pathway. This figure illustrates, in the case of the High Warming (HW) and Limited Action (LA) pathway, two pricing-in periods that cause meaningful negative equity impacts. In these periods, financial markets price in physical risks for the coming 40 years during 2026-2030, and risks of 40-80 years during 2036-2040. Moving to the Net Zero pathway, we see the pricing-in dynamics smoothed out in the first three years of the projection given the early and smooth transition to a net-zero world. In contrast, in the Net Zero Financial Crisis pathway, a severe negative impact is concentrated in 2025 when sudden disinvestments, to align portfolios to the Paris Agreement goals, have disruptive effects on financial markets, with sudden repricing followed by stranded assets and a sentiment shock.
US equity impact by year and pathway Mapping to Aegon exposures In this final stage, we apply mapping where Aegon’s assets, encompassing both securities and funds, are mapped to asset benchmarks available in Climate MAPS. The Climate MAPS solution has a large suite of asset benchmarks available with a high level of granularity by asset class, region, and rating thus facilitating a strong level of mapping versus Aegon’s actual asset portfolio. In this step, we need to make assumptions about how the GA and SA asset portfolios evolve over time. In the results generated, we assume a constant portfolio asset allocation over time. Furthermore, we assume that the GA portfolio is modeled as a static portfolio, and that its value therefore rises and falls with investment returns but does not take account of other external dynamics; for example, new money inflows, claims outflows, etc. It is worth noting that, for fixed income (FI) credit, the asset exposure is mapped to a combination of corporate bond benchmarks with specific credit ratings. Given we assume a constant asset allocation over time this implicitly assumes a regular rebalancing of the exposure, as defaults and migrations emerge, to maintain the initial credit rating split. An alternative modeling approach would be to assume less dynamic management of the FI assets where we buy and hold the securities. Results of the quantitative climate risk assessment Following the application of the mapping, the end-model output is climate-adjusted risk-return metrics for Aegon’s asset portfolios up to 40 years ahead over the different climate pathways. An example of this output is shown in the graph “Return impact versus baseline (cumulative) by year and scenario”, which illustrates the 2023 results in respect of the overall GA asset portfolio. Results are shown as a return impact versus a climate-uninformed baseline outlook. The chart illustrates that the High Warming pathway has the greatest ultimate cumulative impact on the portfolio where the impacts develop more gradually but accelerate later following the significant physical risks of this path being priced in by the financial markets. In the case of the Limited Action pathway, we see a similar shape to the impacts, though they are less severe than the High Warming. The Net Zero pathways, in line with expectations, have a smaller ultimate cumulative impact versus High Warming and Limited Action. However, in the case of Net Zero Financial Crisis, significant return volatility is observed in the short term. 490 | Annual Report on Form 20-F 2023
Return impact versus baseline (cumulative) by year and scenario Return impact versus baseline (cumulative) by year and scenario (sensitivity analysis) Return impact versus baseline (cumulative) by year and scenario (sensitivity analysis) + 10% equity Return impact versus baseline (cumulative) by year and scenario (analysis of change versus 2022) The projections in the graph “Return impact versus baseline (cumulative) by year and scenario” demonstrate good resilience in the value of the GA portfolio against key systemic climate risk drivers over a 40-year horizon. This is largely attributed to the high allocation of fixed income assets in the GA (in this analysis c. 87% of the GA exposure is mapped to Fixed Income asset class and within this c. 50% of the GA exposure is mapped to US corporate bonds), which serves to limit the cumulative climate-related impact on returns. The expected return from the fixed income asset class is forecasted to be less exposed than equities, real estate, or other asset classes to climate risks. Despite the above assessment it is important to recognize the high degree of uncertainty with respect to outcomes projected above. Climate risk scenario modeling is a very challenging topic involving a significant number of assumptions and the need for modeling complex interactions. Furthermore, it is important to recognize the projected outcomes show only the median outcome under the modeled pathway, and not the uncertainty or variance underlying the point estimate. In recognition of this and other modeling choices (e.g. assume constant rebalancing in management of Fixed Income portfolio) we show in graph “Return impact versus baseline (cumulative) by year and scenario (sensitivity analysis)” the results of a sensitivity analysis, whereby we assume that 10% of the mapped US corporate bond exposure is mapped to equity. As highlighted by the chart above, this results in a more onerous cumulative return impact on the GA of -13.1% in the High Warming pathway. The graph “Return impact versus baseline (cumulative) by year and scenario (analysis of change versus 2022)” provides an analysis of change for the GA results comparing the 2023 climate pathways versus the 2022 equivalents, namely Disorderly Net Zero (dNZ) versus Net Zero Financial Crisis (NZFC), Orderly Net Zero (oNZ) versus Net Zero (NZ), and Failed Transition (FT) versus High Warming (HW). The graph illustrates broadly similar outcomes when comparing the 2023 pathways (solid lines) versus their 2022 equivalent (dashed lines). This result is not unexpected, with the assumptions underlying the 2022 and 2023 pathways being broadly similar.
The results provide an initial directional signal; however, climate-related risks are dynamic in nature. Transition risks are expected to dominate in the near to medium term (particularly to 2030) if society is to achieve the net-zero objectives while physical risks may materialize at any time as global temperatures continue to rise. As a result, continuing to monitor developments in climate science, policy, technology, and consumer sentiment is critical for understanding and adapting to the future. Opportunities As an investor, Aegon has an important role to play in supporting the climate transition. In 2021, Aegon committed to transitioning its general account investment portfolio to net-zero GHG emissions by 2050 and joined the Net-Zero Asset Owner Alliance. Underpinned by its Responsible Investment Policy and as part of its broader net-zero ambitions, Transamerica has committed to investing USD 2.5 billion in climate solutions by 2025. To reach this goal, Transamerica has scaled up investments in economic activities that substantially contribute to climate change Risk management Identification and assessment Aegon’s Enterprise Risk Management (ERM) framework is a comprehensive structure that encompasses various components such as risk appetite, risk tolerance, risk identification, risk assessment, risk response, risk reporting and monitoring, and risk control. Within this framework, sustainability, including climate risk, is explicitly integrated. Climate risk is recognized within the framework; however, it is not identified as a separate risk type but as a risk driver that impacts multiple risks across different aspects of Aegon’s operations, including financial risk, underwriting risk, and operational risk. Measuring risks is crucial for effective risk management. However, compared to other risks, data availability for climate risk, given its evolving nature, remains a challenge. Accurate measurement requires a diverse range of data, including forward-looking climate models, historical weather data, information on physical geography, adaptive infrastructure, market responses, cross-correlations, and distributions. mitigation (solutions substantially reducing greenhouse gases by avoiding emissions or sequestering carbon dioxide already in the atmosphere) and adaptation (activities that contribute to enhancing adaptive capacity, strengthening resilience, and reducing vulnerability to climate change). As part of its assessment of climate-related investment opportunities, Aegon reviews the assets’ alignment to at least one of the stated sectoral themes outlined by the NZAOA and, in the case of “green” or “sustainability” bonds, that the use of proceeds meets the eligibility criteria of leading standards and methodologies. More broadly, Aegon has incorporated climate change in its strategy, through its sustainability approach goals and B/MTP. This includes its products and services, where different business units include climate considerations in their financial products in line with customer preferences. Examples of this include Aegon Asset Management’s Global Short Dated Climate Transition Fund and Aegon UK’s workplace default pension funds that have net-zero goals. To enhance our understanding of climate risk, Group Risk undertakes an annual qualitative company-level climate risk assessment (CRA) across Aegon’s three risk categories as outlined in the table “Aegon risk categories”. The qualitative assessment aims to identify relevant climate risks for Aegon and gauge their severity and manageability. The company-wide assessment builds on local assessments by experts in the business units. Through a structured CRA template, the local experts provide their scores on identified climate risks in terms of likelihood, impact, mitigation, and speed of occurrence. They also provide information on current and planned management actions to mitigate the identified risks. These individual assessments are then analyzed, weighted, and aggregated to create the company-level CRA. By following this defined assessment process, Aegon gains qualitative insights into the climate-related risks that it is exposed to. This information serves as input for strategic decision-making, risk management, and planning efforts at both global and local levels. It allows Aegon to proactively address climate risks and develop appropriate mitigation strategies to safeguard our assets and operations. 492 | Annual Report on Form 20-F 2023
Aegon risk categories
High-level assessment findings of our group-level climate risk assessment are that:
Processes for managing climate-related risks At Aegon, climate-related risks are managed through a comprehensive approach that includes qualitative and quantitative assessments and analysis, tracking of climate-related targets and commitments, compliance with applicable risk policy requirements, engagement with investee companies, and the implementation of investment criteria and exclusions. One of the cornerstones of climate-related risk management is good-quality data. We prioritize the analysis of good-quality data to assess and mitigate climate-related risks across our investment portfolio. This includes tracking of key performance indicators related to climate targets and commitments, and pursuing alignment with international standards and best practices. Moreover, we actively engage with investee companies to encourage climate-conscious strategies and initiatives, fostering transparency and accountability within our investment ecosystem. We also consider climate-related risks as part of our investment decision making. Further, Aegon applies a broad range of day-to-day processes, within a framework of applicable policies, to manage climate-related risks. Such processes include, but are not limited to:
With these measures, we are dedicated to safeguarding our business against climate-related threats while promoting sustainable processes that align with our long-term financial objectives. As Aegon is primarily a life insurance company, there is less exposure to the direct consequences of increasing frequency and severity of climate-related events. Any climate-related risks are expected to mostly materialize over time through shifts in the average mortality and morbidity rates. These developments are highly uncertain, and there has always been a continuous shift in mortality and morbidity rates, with underlying driving factors influencing these rates up and down. Historically we have largely seen on aggregate how mortality has decreased and people are living longer, mostly through the advancement of science, while behavioral
494 | Annual Report on Form 20-F 2023
II regulatory regime, and the development of standards for the reporting of non-financial information. Aegon has also continued to advocate for action to complete the Capital Markets Union to unlock capital from institutional and cross-border investors to fund sustainable transition projects in Europe. In the United States, Aegon has engaged with policymakers at both the federal and state levels to advocate for appropriate climate-related regulation. Aegon has supported regulatory measures that appropriately differentiate between the climate exposures of life insurers and property-casualty insurers. At both the federal and state levels, Aegon has supported TCFD-based disclosure standards that would provide uniform and consistent information to stakeholders, while reducing the potential for duplication and redundancy. Aegon expects that these efforts will support the transition to a more sustainable economy. In Bermuda, Aegon has begun engaging with the Bermuda Money Authority on climate issues, including general support for potential disclosure of risks and opportunities in line with TCFD reporting. Metrics and targets Own operations Aegon does not maintain energy- or resource-intensive processes as part of its direct business operations, and its operational carbon footprint is small relative to the scope of its investment activities. Nevertheless, we have set targets to reduce the carbon footprint of our operations related to greenhouse gas emissions from the natural gas and electricity used by our offices. The first phase of our targets covers the period up to December 31, 2024. The second phase of Aegon’s near-term emissions reduction plan will cover the period from 2025 to 2030, and the corresponding targets will be finalized in 2024. By the end of 2023, Aegon had achieved a 68% reduction in its operational carbon footprint compared to the 2019 baseline, well ahead of the target of a 25% reduction by the end of 2024. The impact of less operational properties together with changing work patterns has had a significant impact in reducing our overall facilities footprint. We will continue to monitor the impact of hybrid working on our carbon footprint. Own investments Targets In 2021, as part of its commitment to the Net-Zero Asset Owner Alliance, Aegon set initial targets for its investments. Following the guidance in the NZAOA Target Setting Protocol, for 2025, Aegon intends to reduce the weighted average carbon intensity (WACI) of corporate fixed income and listed equity in its general account by 25% against a 2019 baseline. In 2023, the WACI of our corporate fixed income and equity investments reduced by 37% compared to 2019. Since 2023, the WACI reduction target has also been included in executive remuneration to ensure that corporate action at a leadership level is aligned with our net-zero commitment. Weighted average carbon intensity of corporate fixed income and listed equity.
In June 2023, we also set an additional target for our direct real estate investments, committing to reducing the scope 1 and 2 carbon intensity of our directly-held real estate investments by 25% (kgCO2e/m2) by 2025, against a 2019 baseline. At the end of 2023, the carbon intensity had fallen by 46% compared to 2019. Carbon intensity of direct real estate investments
Complementing efforts to reduce GHG emissions in our general account portfolio, we leverage investments and engagement strategies as additional levers to meet our net-zero commitments and actively manage the positioning of our portfolio in relation to the climate transition. To that end, Transamerica has committed to two intermediate targets by 2025, which further commit the company to investing USD 2.5 billion in opportunities that help mitigate climate change or adapt to the associated impacts and engaging with at least the top 20 corporate carbon emitters in the portfolio.
Additional climate-related targets set on Aegon’s general account
Disclosures We also disclosed supplementary metrics on the carbon footprint of our investments for our global general account holdings. A breakdown of our general account by asset class can be found below. Global general account by asset class Source: Aegon calculation. Values are as of December 31, 2023 and may not add up to 100% due to rounding. Global general account – Corporate fixed income and listed equity
Corporate fixed income and listed equity results are dominated by holdings in the utilities, energy, and materials sectors where their contribution to the total carbon emissions and intensity of the account greatly outweighs their financial position. The graph “Active contribution by sector (in %)” indicates how Aegon’s sector exposures impact the weighted average carbon intensity and total carbon emissions, relative to their financial positions. 496 | Annual Report on Form 20-F 2023
Active contribution by sector Global general account - Sovereign fixed income
In light of the a.s.r. transaction, the general account of Aegon’s Dutch business is no longer included in our sovereign fixed income holdings. The transaction has led to a significant shift in financial weightings and, in 2023, our largest sovereign holdings are now in US-issued bonds. The results are dominated by our US holdings, where their contribution to the footprint and intensity of the account outweighs their financial position. The graph “Active contribution by region (in %)” provides an indicates how Aegon’s regional exposures impact the weighted average carbon intensity and total carbon emissions, relative to their financial positions.
Active contribution by region Methodology In July 2023, Aegon completed the transaction to combine its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r., which led to a restatement of its 2019 baseline figures to exclude the Dutch business but not an adjustment to the ambition of our targets. Corporate fixed income and listed equity metrics were calculated following the Partnership for Carbon Accounting Financials (PCAF) guidelines and include scope 1 and 2 emissions. For sovereign assets, Aegon changed the methodology in 2023 to align with the PCAF guidelines to now reflect Purchase Power Parity (PPP) adjusted Gross Domestic Product (GDP). We also introduced a split for reporting sovereign assets: including and excluding the land use, land-use change, and forestry (LULUCF) emissions. The WACI was calculated in line with the TCFD’s recommendations. The direct real estate metrics are calculated in line with PCAF guidelines and include scope 1 and 2 location-based emissions of those properties. Floorspace and carbon data are relatively challenging to obtain, so the target is set on properties with available floorspace and carbon data. The amount for financing the transition investments is based on the IFRS book value of Transamerica’s general account, accounting for the use of proceeds specifically tied to climate change mitigation and/or climate change adaptation activities. The use of proceeds must align with at least one of the stated sectoral themes outlined by the NZAOA. For labeled “green” or “sustainability” bonds, standards such as Bloomberg, as well as third-party opinions, are typically used to confirm that the stated use of proceeds meets eligibility criteria. Regarding engagements, Aegon aims to engage with at least the top 20 corporate carbon emitters based on WACI. For 2023, Aegon is no longer reporting on the Sustainalytics Carbon Risk Rating, due to a change in data contracts. Climate vulnerability for sovereign issues is measured using the Notre Dame Global Adaptation Initiative (ND-GAIN) Country Index. Target figures are set in line with Net-Zero Asset Owner Alliance guidance. Next steps Aegon will seek to continue to improve its climate change strategy, governance, approach to risk and opportunity measurement, and implementation in the coming years. In 2024, we will work toward setting new climate-related investment and operational targets toward 2030. 498 | Annual Report on Form 20-F 2023
EU Taxonomy EU Taxonomy Regulation The EU Taxonomy Regulation
For each of the six environmental objectives, delegated acts are level. Article 8 of the EU Taxonomy Regulation requires non-financial information in accordance with the NFRD. Disclosure of EU Taxonomy-eligible and Taxonomy-aligned economic activities and investments The European Commission has adopted a phased approach to give companies more time to comply with the EU Taxonomy disclosure requirements. In the “Eligible” means that an economic activity is described in one of the delegated acts as mentioned above, irrespective of whether that economic activity meets any or all of the technical screening criteria laid down in those delegated acts to qualify as sustainable. To assess the eligibility and alignment of its the EU Taxonomy tables is based on reported information. Scope of assets and activities covered by the EU Taxonomy disclosures Investments To calculate the proportion of Taxonomy-eligible and Taxonomy-aligned investments, the total of covered investments is used as the denominator, which includes ![]()
non-financial information loans to individuals such as private loans and mortgages and other assets such as real estate as well as real estate for own use. Own activities In last year’s annual report, Aegon’s underwriting non-life business as prescribed by the EU Taxonomy.
Assumptions and data limitations For the 2023 disclosures on alignment and eligibility, Book Value. Our mortgage and real estate Assessing the For EU Taxonomy eligibility
500 | Annual Report on Form 20-F 2023 ![]()
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EU Taxonomy alignment
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![]() | information Sustainability information | |||||
Taxonomy-aligned activities – provided‘do-not-significant- harm’(DNSH) and social safeguards positive assessment: | | Percentage of investments covered |
| | Percentage of investments covered |
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(1) Climate change mitigation | ||||||||||
Turnover: | 0.07% | Transitional activities: (Turnover) | 0.00% | |||||||
CapEx: | 0.10% | Transitional activities: (CapEx) | 0.01% | |||||||
Enabling activities: (Turnover) | 0.04% | |||||||||
Enabling activities: (CapEx) | 0.05% | |||||||||
(2) Climate change adaptation | ||||||||||
Turnover: | 0% | Enabling activities: (Turnover) | 0% | |||||||
CapEx: | 0% | Enabling activities: (CapEx) | 0% | |||||||
Template 1: Nuclear and fossil gas related activities | ||||||||||
Nuclear energy related activities: | ||||||||||
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | Yes | |||||||||
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | Yes | |||||||||
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | Yes | |||||||||
Fossil gas related activities: | ||||||||||
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | Yes | |||||||||
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | Yes | |||||||||
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | Yes |
Template 2: Taxonomy-aligned economic activities (denominator) - CAPEX | CCM + CCA | | Climate change mitigation (CCM) | | | Climate change adaptation (CCA) |
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Economic activities: | | Absolute amount (EUR million) | | | Percentage of investments covered | | | Absolute amount (EUR million) | | | Percentage of investments covered | | | Absolute amount (EUR million) | | | Percentage of investments covered | | ||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of CAPEX | - | 0% | - | 0% | - | 0.0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of CAPEX | 2.45 | 0% | 2.45 | 0% | - | 0.0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of CAPEX | 20.30 | 0.01% | 20.30 | 0.01% | - | 0.0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of CAPEX | 0.01 | 0% | 0.01 | 0% | - | 0.0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of CAPEX | 0.01 | 0% | 0.01 | 0% | - | 0.0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of CAPEX | - | 0% | - | 0% | - | 0.0% | ||||||||||||||||||
Amount and proportion of other Taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of CAPEX | 259,398.95 | 99.99% | 259,390.32 | 99.99% | 8.63 | 0.0% | ||||||||||||||||||
Total applicable KPI - CAPEX | 259,421.73 | 100.0% | 259,413.09 | 100.00% | 8.63 | 0.0% |
502 | Annual Report on Form 20-F 2023
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Template 2: Taxonomy-aligned economic activities (denominator) - turnover | CCM + CCA | | Climate change mitigation (CCM) |
| | Climate change adaptation (CCA) |
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Economic activities: | | Absolute amount (EUR million) |
| | Percentage of investments covered |
| | Absolute amount (EUR million) |
| | Percentage of investments covered |
| | Absolute amount (EUR million) |
| | Percentage of investments covered |
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Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of turnover | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of turnover | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of turnover | 17.04 | 0.01% | 17.04 | 0.01% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of turnover | 0.02 | 0% | 0.02 | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of turnover | 0.01 | 0% | 0.01 | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of turnover | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of other Taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of turnover | 259,404.66 | 99.99% | 259,400.96 | 99.99% | 3.70 | 0% | ||||||||||||||||||
Total applicable KPI - turnover | 259,421.73 | 100% | 259,418.03 | 100% | 3.70 | 0% |
Template 3: Taxonomy-aligned economic activities (numerator) - CAPEX | CCM + CCA | | Climate change mitigation (CCM) |
| | Climate change adaptation (CCA) |
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Economic activities: | | Absolute amount (EUR million) | | | Percentage of investments covered | | | Absolute amount (EUR million) | | | Percentage of investments covered | | | Absolute amount (EUR million) | | | Percentage of investments covered | | ||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of CAPEX | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of CAPEX | 2.45 | 1% | 2.45 | 1% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of CAPEX | 20.30 | 7% | 20.30 | 7% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of CAPEX | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of CAPEX | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of CAPEX | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of other Taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of CAPEX | 254.30 | 92% | 245.67 | 89% | 8.63 | 3% | ||||||||||||||||||
Total amount and proportion of Taxonomy-aligned economic activities in the numerator of CAPEX | 277.05 | 100% | 268.42 | 97% | 8.63 | 3% |
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Template 3: Taxonomy-aligned economic activities (numerator) - turnover | CCM + CCA | Climate change mitigation (CCM) | Climate change adaptation (CCA) | |||||||||||||||||||||
Economic activities: | Absolute amount (EUR million) | Percentage of investments covered | Absolute amount (EUR million) | Percentage of investments covered | Absolute amount (EUR million) | Percentage of investments covered | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of turnover | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of turnover | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of turnover | 14.66 | 8% | 14.66 | 8% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of turnover | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of turnover | 0.01 | 0% | 0.01 | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of turnover | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of other Taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of turnover | 165.65 | 92% | 161.95 | 90% | 3.70 | 2% | ||||||||||||||||||
Total amount and proportion of Taxonomy-aligned economic activities in the numerator of turnover | 180.31 | 100% | 176.61 | 98% | 3.70 | 2% |
504 | Annual Report on Form 20-F 2023
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Template 4: Taxonomy-eligible but not taxonomy- aligned economic activities | CCM + CCA | | Climate change mitigation (CCM) |
| | Climate change adaptation (CCA) |
| |||||||||||||||||
Economic activities: | Absolute amount (EUR million) | Percentage of investments covered | Absolute amount (EUR million) | Percentage of investments covered | Absolute amount (EUR million) | Percentage of investments covered | ||||||||||||||||||
Amount and proportion of Taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0% | - | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.48 | 0% | 0.48 | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 16.86 | 0.13% | 16.86 | 0.13% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 16.03 | 0.12% | 16.03 | 0.12% | - | 0% | ||||||||||||||||||
Amount and proportion of Taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1.53 | 0% | 1.53 | 0% | - | 0% | ||||||||||||||||||
Amount and proportion of other Taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 13,413.37 | 99.7% | 13,413.37 | 99.7% | - | 0% | ||||||||||||||||||
Total amount and proportion of Taxonomy eligible but not Taxonomy-aligned economic activities in the denominator of the applicable KPI | 13,448.27 | 100% | 13,448.27 | 100.00% | - | 0% |
Template 5: Taxonomy non-eligible economic activities | ||||||||
Economic activities: | Absolute amount (EUR million) | Percentage of investments covered | ||||||
Amount and proportion of economic activity referred to in row 1 of Template 1 that is Taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0% | ||||||
Amount and proportion of economic activity referred to in row 2 of Template 1 that is Taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 9.14 | 0.004% | ||||||
Amount and proportion of economic activity referred to in row 3 of Template 1 that is Taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 2.80 | 0.001% | ||||||
Amount and proportion of economic activity referred to in row 4 of Template 1 that is Taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0% | ||||||
Amount and proportion of economic activity referred to in row 5 of Template 1 that is Taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0% | ||||||
Amount and proportion of economic activity referred to in row 6 of Template 1 that is Taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0% | ||||||
Amount and proportion of other Taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 245,504.16 | 99.995% | ||||||
Total amount and proportion of Taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 245,516.10 | 100% |
Annual Report on Form 20-F 2023 | 505 |
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![]() | risk management Financial information Sustainability information | |||||
Voluntary information
Introduction
In addition to metrics disclosed under the “Our material topics” section, Aegon also voluntarily discloses information relevant to our sustainability approach and sustainability benchmarks and ratings. The table below includes information that goes beyond specific reporting requirements
and is not linked to Aegon’s material topics that are identified through the DMA.
Extra metrics
unit | 2023 | 2022 | % | |||||||||||||
Responsible investment solutions by Aegon Asset Management | ||||||||||||||||
Responsible investment solutions (RIS) | ||||||||||||||||
Assets under management in Responsible Investment Solutions (RIS)1) | EURb | 133.6 | 120.2 | 11% | ||||||||||||
Exclusions and ethical solutions2) | EURb | 109.9 | 103.9 | 6% | ||||||||||||
Best-in-class ESG solutions3) | EURb | 15.9 | 9.4 | 70% | ||||||||||||
Climate transition solutions4) | EURb | 1.2 | n.m. | n.m. | ||||||||||||
Sustainable solutions5) | EURb | 5.6 | 2.7 | 110% | ||||||||||||
Impact investing solutions6) | EURb | 0.9 | 4.2 | (77%) | ||||||||||||
Engagement and voting | ||||||||||||||||
Number of engagements with investee companies7) | nr | 824 | 832 | (1%) | ||||||||||||
Proportion of engagements addressing environmental themes | % | 36% | 24% | 12pp | ||||||||||||
Proportion of engagements addressing social themes | % | 19% | 18% | 1pp | ||||||||||||
Proportion of engagements addressing governance themes | % | 34% | 44% | (10pp) | ||||||||||||
Proportion of engagements addressing general disclosure themes | % | 11% | 14% | (3pp) | ||||||||||||
Status of engagement with investee companies8) | ||||||||||||||||
Proportion of engagements at milestone one | % | 34% | 23% | 11pp | ||||||||||||
Proportion of engagements at milestone two | % | 24% | 21% | 3pp | ||||||||||||
Proportion of engagements at milestone three | % | 28% | 27% | 1pp | ||||||||||||
Proportion of engagements at milestone four | % | 12% | 12% | 0pp | ||||||||||||
Proportion of engagements where no further action is required | % | 2% | 17% | (15pp) | ||||||||||||
Number of shareholder meetings of invested companies at which votes cast9) | nr | 3,853 | 3,899 | (1%) | ||||||||||||
Lobbying | ||||||||||||||||
Political advocacy | ||||||||||||||||
Monetary value of political contributions10) | EURm | 0.17 | 0.24 | (26.8%) | ||||||||||||
Monetary value of political lobbying/advocacy11) | EURm | 0.8 | 0.9 | (8.7%) | ||||||||||||
Amount paid for membership to lobbying associations12) | EURm | 3.6 | 3.4 | 6.9% | ||||||||||||
Donations and volunteering | ||||||||||||||||
Total cash donations13) | EURm | 7.6 | 9.1 | (17%) | ||||||||||||
Financial security and education | EURm | 1.4 | 0.9 | 54% | ||||||||||||
Financial education and literacy | EURm | 1.4 | 0.9 | 54% | ||||||||||||
Employability later in life | EURm | - | 0.3 | (99%) | ||||||||||||
Wellbeing and longevity | EURm | 5.7 | 6.5 | (12%) | ||||||||||||
Physical fitness | EURm | 0.1 | 0.2 | (55%) | ||||||||||||
Mental vitality | EURm | 1.1 | 1.1 | 4% | ||||||||||||
Prevention of diseases | EURm | 1.1 | 1.1 | (1%) | ||||||||||||
Livable communities | EURm | 3.4 | 4.5 | (23%) | ||||||||||||
Cash donations: Other | EURm | 0.5 | 1.8 | (75%) | ||||||||||||
Proportion of cash donations to key themes | % | 94% | 81% | 13pp | ||||||||||||
Financial security and education | % | 18% | 10% | 9pp | ||||||||||||
Wellbeing and longevity | % | 76% | 71% | 5pp | ||||||||||||
Number of organizations receiving donations | nr | 420 | 493 | (15%) |
506 | Annual Report on Form 20-F 2023
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unit | 2023 | 2022 | % | |||||||||||||
Volunteering | ||||||||||||||||
Volunteering hours | hours | 20,634 | 16,318 | 26% | ||||||||||||
Volunteering value14) | EURm | 1.5 | 1.1 | 34% | ||||||||||||
Total investment | ||||||||||||||||
Total value community investment | EURm | 9.1 | 10.3 | (11%) | ||||||||||||
Total value community investment as proportion of net result | % | 4.6% | 1.0% | 3.5pp | ||||||||||||
Management of relationships with suppliers | ||||||||||||||||
Total spend on goods and services15) | EURb | 1.3 | 1.7 | (23%) | ||||||||||||
Top 250 (“in-scope”) suppliers15) | ||||||||||||||||
Spend on goods and services - top 250 in-scope suppliers | EURb | 1.0 | 1.5 | (33%) | ||||||||||||
Proportion of total spend on goods and services with top 250 in-scope suppliers | % | 75% | 87% | (12pp) | ||||||||||||
Supplier ESG assessment16) | ||||||||||||||||
Number of in-scope suppliers assessed for ESG performance | nr | 106 | 97 | 9% | ||||||||||||
Spend on goods and services with in-scope suppliers assessed for ESG performance | EURb | 0.8 | 1.1 | (25%) | ||||||||||||
Proportion of spend with in-scope suppliers assessed for ESG performance | % | 80% | 72% | 7.8pp | ||||||||||||
Overall score of in-scope suppliers assessed for ESG performance | 1-100 | 59 | 58 | 2% | ||||||||||||
Proportion of in-scope suppliers scoring 1-24 (insufficient) | % | 0% | 0% | 0.0pp | ||||||||||||
Proportion of in-scope suppliers scoring 25-44 (partial) | % | 10% | 14% | (4.0pp) | ||||||||||||
Proportion of in-scope suppliers scoring 45-64 (good) | % | 56% | 59% | (3.1pp) | ||||||||||||
Proportion of in-scope suppliers scoring 65-84 (advanced) | % | 33% | 27% | 6.2pp | ||||||||||||
Proportion of in-scope suppliers scoring 85-100 (outstanding) | % | 1% | 0% | 0.9pp | ||||||||||||
Average time to pay an invoice | days | 30.5 | n.m. | n.m. | ||||||||||||
Number of legal proceedings currently outstanding for late payments | nr | - | n.m. | n.m. | ||||||||||||
Integration ESG in risk policies17) | ||||||||||||||||
Percentage risk management policies where ESG risk considerations have been integrated into the in-scope policies | % | 100% | n.m. | n.m. |
1 | ||
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2019 | 2021 | Change | ||||||
Weighted average carbon intensity | tCO 2 e/EURm revenue | 490 | 490 | 0% |
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Corporate FI | Coverage | |||||||||
Absolute footprint | tCO 2 e | 4,886,000 | 72 | % | ||||||
Relative intensity | tCO 2 e/EURm invested | 110 | 72 | % | ||||||
Weighted average carbon intensity | tCO 2 e/EURm GDP | 490 | 97 | % | ||||||
Climate change resiliency | ND-GAIN rating | 9.9 | 73 | % |
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Sovereign FI | Coverage | |||||||||
Absolute footprint | tCO 2 e | 15,088,000 | 100 | % | ||||||
Relative intensity | tCO 2 e/EURm invested | 620 | 100 | % | ||||||
Weighted average carbon intensity | tCO 2 e/EURm GDP | 310 | 100 | % | ||||||
Climate change resiliency | ND-GAIN rating | 67 | 100 | % |
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investing strategies. |
2 | ||
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Capital | Indicator | 2021 | 2020 | Change 2020 to 2021 | 2019 | |||||||||
Customer: Number | ||||||||||||||
Total customers | 31.7 million | 30.4 million | 4.4% | 29.9 million | ||||||||||
Americas | 17.5 million | 16.2 million | 8.3% | 16.1 million | ||||||||||
Customer | The Netherlands | 2.7 million | 2.5 million | 7.1% | 2.6 million | |||||||||
United Kingdom | 3.9 million | 3.8 million | 1.1% | 3.7 million | ||||||||||
International | 7.7 million | 7.9 million | (3.1% | ) | 7.5 million | |||||||||
New customers | 3.8 million | 4.6 million | (17.5%) | 4.3 million | ||||||||||
Customer: Satisfaction | ||||||||||||||
Benchmarked Net Promoter Score (NPS) 1) | ||||||||||||||
Market Position | ||||||||||||||
United States | = Market Average | NM | NA | NM | ||||||||||
Customer | The Netherlands | ≤ Market Average | NM | NA | NM | |||||||||
United Kingdom | > Market Average | NM | NA | NM | ||||||||||
Complaints | ||||||||||||||
Total customer complaints 2) | 86,075 | 80,510 | 6.9% | 91,348 | ||||||||||
Customer: Value | ||||||||||||||
Manufactured | Claims, benefits and plan withdrawals | |||||||||||||
Total claims, benefits and retirement plan withdrawals | EUR 61.9 billion | EUR 57.4 billion | 7.9% | EUR 59.4 billion |
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Capital | Indicator | 2021 | 2020 | Change 2020 to 2021 | 2019 | |||||||||
Employees: Workforce | ||||||||||||||
Location | ||||||||||||||
Workforce 1) | 22,271 | 22,322 | (0.2% | ) | 23,757 | |||||||||
Human and Intellectual | United States | 7,675 | 7,960 | (3.6% | ) | 8,570 | ||||||||
The Netherlands | 3,855 | 3,930 | (1.9% | ) | 3,998 | |||||||||
United Kingdom | 2,476 | 2,307 | 7.3% | 2,261 | ||||||||||
International | 6,590 | 6,598 | (0.1% | ) | 7,393 | |||||||||
Asset Management | 1,675 | 1,527 | 9.7% | 1,535 | ||||||||||
Direct employees | 17,936 | 17,989 | (0.3% | ) | 18,905 | |||||||||
Employees: Inclusion and diversity | ||||||||||||||
Gender | ||||||||||||||
Proportion of women employees | 50% | 50% | 1pp | 49% | ||||||||||
Proportion of women in senior management | 34% (at target) | 32% (at target) | 2pp | 29% | ||||||||||
Human | Proportion of women in senior management (target) 2) | 34% | 32% | 2pp | NA | |||||||||
Proportion of women in Supervisory Board | 38% | 38% | 0pp | 29% | ||||||||||
Proportion of women in Executive Board | 0% | 0% | 0pp | 0% | ||||||||||
Proportion of women in Management Board 3) | 20% | 17% | 3pp | 18% |
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Capital | Indicator | 2021 | 2020 | Change 2020 to 2021 | 2019 | |||||||||||
Employees: Recruitment and retention | ||||||||||||||||
Recruitment | ||||||||||||||||
Number of new hires | 2,540 | 2,217 | 15% | 2,974 | ||||||||||||
Leavers | ||||||||||||||||
Number of leavers | 1,727 | 2,831 | (39% | ) | 3,935 | |||||||||||
Proportion voluntary leavers | 78% | 69% | 8pp | 59% | ||||||||||||
Resignation | 69% | NM | NM | NM | ||||||||||||
Retirement | 6% | NM | NM | NM | ||||||||||||
Other voluntary 1) | 3% | NM | NM | NM | ||||||||||||
Human and Intellectual | Proportion involuntary leavers | 22% | 31% | (8pp | ) | 41% | ||||||||||
Redundancy | 13% | 20% | (7pp | ) | 36% | |||||||||||
Termination | 7% | NM | NM | NM | ||||||||||||
Transfer | 0% | NM | NM | NM | ||||||||||||
Other involuntary | 1% | NM | NM | NM | ||||||||||||
Turnover | ||||||||||||||||
Turnover rate | 12% | 15% | (3pp | ) | 22% | |||||||||||
Voluntary | 10% | 10% | 0pp | 13% | ||||||||||||
Involuntary 2) | 3% | 5% | (2pp | ) | 9% |
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Capital | Indicator | 2021 | 2020 | Change 2020 to 2021 | 2019 | |||||
Employees: Health and safety | ||||||||||
Absence 1) | ||||||||||
Human | Number of days lost to employee absence | 96,479 | 93,464 | 3.2% | 107,313 | |||||
Employee absence rate | 1.7% | 1.7% | 0pp | 1.8% | ||||||
Employees: Training and development | ||||||||||
Investment in training and career development | EUR 9.5 million | EUR 10.8 million | (12.1%) | EUR 16.9 million | ||||||
Intellectual | Average investment in training and career development per employee (EUR) | 428 | 486 | (11.9%) | 711 | |||||
Employees: Engagement | ||||||||||
Global Employee Survey 2) | ||||||||||
Engagement | 68 | 72 | (4pp) | 67 | ||||||
Leadership | 57 | 63 | (6pp) | 55 | ||||||
Inclusion | 74 | 79 | (5pp) | 76 | ||||||
Social and Relationship | Diversity | 72 | 73 | (1pp) | 69 | |||||
Participation rate | 77% | 82% | (5pp) | 86% | ||||||
Proportion of employees covered by collective bargaining / labor agreements 3) | 17.3% | 17.6% | (0.3pp) | 16.8% | ||||||
Employees: Remuneration | ||||||||||
Total employment costs | EUR 1.9 billion | EUR 2.0 billion | (4.9%) | EUR 2.1 billion | ||||||
Human | Salary costs | EUR 1.3 billion | EUR 1.3 billion | (0.5%) | EUR 1.3 billion | |||||
Ratio of median to CEO salary 4) | 28:1 | 32:1 | NM | 33:1 | ||||||
Policy compliance (Global Remuneration Framework) | 95% | 95% | 0.0pp | 94% |
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Capital | Indicator | 2021 | 2020 | Change 2020 to 2021 | 2019 | |||||||||||||
Business partners: Brokers and intermediaries | ||||||||||||||||||
Financial | Commissions paid to brokers and other intermediaries | EUR 2.6 billion | EUR 2.3 billion | 12.2% | EUR 2.4 billion | |||||||||||||
Business partners: Reinsurers | ||||||||||||||||||
Financial | Premiums paid to reinsurers | EUR 3.5 billion | EUR 2.7 billion | 30.1% | EUR 2.4 billion | |||||||||||||
Business partners: Goods and services | ||||||||||||||||||
Total spend on goods and services | EUR 1.7 billion | EUR 1.6 billion | 4.8% | EUR 1.6 billion | ||||||||||||||
Spend on goods and services with top 250 (‘in-scope’) suppliers1) | EUR 1.4 billion | EUR 1.3 billion | 5.1% | NM | ||||||||||||||
Proportion total spend on goods and services with top 250 (‘in-scope’) suppliers | 85.5% | 85.3% | 0.3pp | NM | ||||||||||||||
Social and Relationship | Number of ‘in-scope’ suppliers assessed for ESG performance2) | 81 | 67 | 20.9% | NM | |||||||||||||
Spend on goods and services with suppliers assessed for ESG performance 2) | EUR 0.8 billion | EUR 0.8 billion | 10.4% | NM | ||||||||||||||
Proportion spend on goods and services with top 250 (‘in-scope’) suppliers assessed for ESG performance | 59.2% | 56.4% | 2.8pp | NM |
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Capital | Indicator | 2021 | 2020 | Change 2020 to 2021 | 2019 | |||||||||
Investors: Corporate Governance 1) | ||||||||||||||
Human and Intellectual | Supervisory Board | |||||||||||||
Membership | 8 | 8 | NA | 6 | ||||||||||
Average tenure (years) | 4 | NM | NA | NM | ||||||||||
Average age | 63 | NM | NA | NM | ||||||||||
Executive Board | ||||||||||||||
Membership | 2 | 2 | NA | 2 | ||||||||||
Average tenure (years) | 3 | NM | NA | NM | ||||||||||
Average age | 58 | NM | NA | NM | ||||||||||
Management Board | ||||||||||||||
Membership | 8 | 10 | NA | 9 | ||||||||||
Average tenure (years) | 4 | NM | NA | NM | ||||||||||
Average age | 52 | NM | NA | NM | ||||||||||
Investors: FInancial Returns | ||||||||||||||
Financial | Returns to investors paid in the year | EUR 509 million | EUR 370 million | 37% | EUR 899 million | |||||||||
Dividend payments 2) | EUR 289 million | EUR 123 million | 135% | EUR 611 million | ||||||||||
Interest (payments to bondholders) 3) | EUR 220 million | EUR 248 million | (11% | ) | EUR 288 million | |||||||||
Dividend over the fiscal year per common share 4) | EUR 0.17 | EUR 0.12 | 42% | EUR 0.31 | ||||||||||
Share price (change) | 35.8% | (20.0%) | NM | 0.3% | ||||||||||
Total shareholder return (TSR) | 40.6% | (18.4%) | NM | 8.0% |
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Capital | Indicator | 2021 | 2020 | Change 2020 to 2021 | 2019 | |||||||
Society: Responsible investment | ||||||||||||
Responsible investment solutions (RIS) | ||||||||||||
Assets under management in RIS 1) | EUR 177.7 billion | EUR 167.0 billion | 6.4% | NM | ||||||||
Manufactured | Exclusions 2) | EUR 160.5 billion | EUR 157.6 billion | 1.9% | NM | |||||||
Best-in-class 3) | EUR 10.2 billion | EUR 3.3 billion | 207.9% | NM | ||||||||
Sustainability-themed 4) | EUR 2.9 billion | EUR 2.4 billion | 23.5% | NM | ||||||||
Impact investments 5) | EUR 4.1 billion | EUR 3.7 billion | 8.2% | NM | ||||||||
Engagement and voting 6) | ||||||||||||
Number of engagements with investee companies 7) | 596 | 575 | 3.7% | 564 | ||||||||
Proportion engagements addressing environment themes | 31% | 25% | 6pp | NM | ||||||||
Intellectual | Proportion engagements addressing social themes | 19% | 21% | (2pp | ) | NM | ||||||
Proportion engagements addressing governance themes | 38% | 53% | (15pp | ) | NM | |||||||
Proportion engagements addressing general disclosure themes | 11% | 8% | 3pp | NM | ||||||||
Number of shareholder meetings of invested companies where votes cast | 2,963 | 2,511 | 18.0% | 2,321 |
3 | “Best-in-class” investments |
4 | “Climate transition” investments include companies that are better prepared to manage climate risks |
5 | “Sustainable” investment focuses on issuers whose activities or practices are aligned with sustainability themes in an effort to generate competitive returns over the long term. |
“Impact investing” seeks financial returns alongside measurable positive social and/or environmental impact. |
Aegon AM aims to build a constructive |
8 | Status of engagement with investee companies is measured based on the milestones achieved. Milestone one: We have flagged our concerns and contacted the company. Milestone two: The company has responded (letter, email, phone call) and the dialog has started. Milestone three: The company has taken concrete steps to resolve our concerns, such as achievement of a commitment. Milestone four: The engagement goal has been fully achieved and verified. No further action required: In some cases, our assessment of the ESG issue at stake may change and we subsequently decide to no longer pursue the engagement. |
9 | For Aegon AM’s relevant investment strategies that |
10 | Political contributions may include direct financial or in-kind support to political parties, their elected representatives, or persons seeking political office. It may also include indirect political contributions made through an intermediary organization such as a lobbyist or charity, or support made to an organization such as a think tank or trade association that is linked to or supports particular political parties or causes. The contribution consists of |
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Capital Indicator | 2021 | 2020 | Change 2020 to 2021 | 2019 | ||||||||||||||
Society: Investment footprint | ||||||||||||||||||
Corporate Fixed Income + Listed Equity (CFI) 1) | ||||||||||||||||||
Proportion CFI holding assessed for carbon emissions | 72% | 77% | (5pp) | NM | ||||||||||||||
CFI absolute footprint (metric tons CO 2 e) | 4,886,000 | 4,878,000 | 0.2% | NM | ||||||||||||||
CFI relative intensity (metric tons CO 2 e/EURm invested) | 110 | 110 | 0.0% | NM | ||||||||||||||
Weighted average carbon intensity (metric tons CO 2 e/EURm revenue) | 490 | 470 | 0.0% 2) | 490 | ||||||||||||||
Weighted average carbon intensity (coverage) | 97% | 97% | (0pp) | 95% | ||||||||||||||
Carbon Risk Rating (Sustainalytics) | 9.9 | 9.4 | 0.5 | NM | ||||||||||||||
Carbon Risk Rating (Sustainalytics) (coverage) | 73% | 63% | 10pp | NM | ||||||||||||||
Natural | ||||||||||||||||||
Sovereign Fixed Income (SFI) 3) | ||||||||||||||||||
Proportion SFI holding assessed for carbon emissions | 100% | 98% | 2pp | NM | ||||||||||||||
Absolute footprint (metric tons CO 2 e) | 15,088,000 | 13,863,000 | 8.8% | NM | ||||||||||||||
Relative intensity (metric tons CO 2 e/EURm invested) | 620 | 500 | 24.0% | NM | ||||||||||||||
Weighted average carbon intensity (metric tons CO 2 e/EURm GDP) | 310 | 330 | (6.1%) | NM | ||||||||||||||
Weighted average carbon intensity (coverage) | 100% | 98% | 2pp | NM | ||||||||||||||
Climate change resiliency (ND-GAIN rating) | 67 | 67 | 0 | NM | ||||||||||||||
Climate change resiliency (coverage) | 100% | 98% | 2pp | NM |
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Capital | Indicator | 2021 | 2020 | Change 2020 to 2021 | 2019 | |||||||||||||
Society: Tax transparency | ||||||||||||||||||
Tax transparency | ||||||||||||||||||
Total taxes borne by Aegon | EUR 381 million | EUR 319 million | NA | EUR 615 million | ||||||||||||||
Corporate income tax 1) | (EUR 18 million | ) | EUR 10 million | NA | EUR 42 million | |||||||||||||
Social and | Americas | EUR 55 million | (EUR 43 million | ) | NA | (EUR 12 million | ) | |||||||||||
Relationship | The Netherlands | (EUR 75 million | ) | EUR 33 million | NA | EUR 32 million | ||||||||||||
United Kingdom | (EUR 2 million | ) | EUR 14 million | NA | (EUR 9 million | ) | ||||||||||||
Others | (EUR 3 million | ) | EUR 6 million | NA | EUR 31 million | |||||||||||||
Taxes collected on behalf of others | EUR 2.41 billion | EUR 2.51 billion | NA | EUR 2.45 billion | ||||||||||||||
Society: Community investment | ||||||||||||||||||
Community investment | ||||||||||||||||||
Cash donations 2) | EUR 9.4 million | EUR 9.5 million | (1.3% | ) | EUR 8.2 million | |||||||||||||
Financial security and education | EUR 2.0 million | EUR 3.0 million | (35.7% | ) | NM | |||||||||||||
Financial Education and Literacy | EUR 1.6 million | EUR 2.7 million | (40.9% | ) | NM | |||||||||||||
Employability Later in Life | EUR 0.3 million | EUR 0.3 million | 8.9% | NM | ||||||||||||||
Well-Being and Longevity | EUR 5.6 million | EUR 5.7 million | (1.1% | ) | NM | |||||||||||||
Physical Fitness | EUR 0.2 million | EUR 0.2 million | (16.0% | ) | NM | |||||||||||||
Mental Vitality | EUR 0.5 million | EUR 0.9 million | (38.7% | ) | NM | |||||||||||||
Prevention of Diseases | EUR 1.3 million | EUR 1.7 million | (23.2% | ) | NM | |||||||||||||
Livable Communities | EUR 3.6 million | EUR 2.9 million | 25.2% | NM | ||||||||||||||
Social and | Other | EUR 1.8 million | EUR 0.8 million | 131.5% | NM | |||||||||||||
Relationship | Proportion of cash donations to key themes | 81% | 92% | (11pp | ) | NM | ||||||||||||
Financial security and education | 21% | 32% | (11pp | ) | NM | |||||||||||||
Well-Being and Longevity | 60% | 60% | 0pp | NM | ||||||||||||||
Number of organizations receiving donations | 469 | 481 | NA | 541 | ||||||||||||||
Volunteering | ||||||||||||||||||
Volunteering hours | 6,806 | 4,399 | 54.7% | 19,448 | ||||||||||||||
Volunteering value 3) | EUR 0.3 million | EUR 0.2 million | 46.5% | EUR 0.9 million | ||||||||||||||
Total investment | ||||||||||||||||||
Total value community investment | EUR 9.7 million | EUR 9.7 million | (0.3% | ) | EUR 9.0 million | |||||||||||||
Total value community investment as proportion of net result | 0.6% | 17.6% | (17pp | ) | 0.6% |
11 | Political lobbying / advocacy refers to the expenses paid for |
12 | Membership of lobbying associations refers to an agreement by which someone joins a professional or advocacy association. A professional association is |
Cash donations refer to charitable donations to charities and other non-profit organizations, done in accordance with the Aegon |
The value of volunteering is calculated |
15 | Our top 250 suppliers consistently represent at least 80% of our total supplier spend. The proportion of total spend on goods and services with the top 250 (“in-scope”) suppliers is based on actual invoice payments and does not take into account accruals. As a result, the denominator “Total spend on goods and services (in EUR billions)” could not be reconciled to the expenses in the financial statements. |
16 | Suppliers are assessed using the EcoVadis methodology, which aims to measure the quality of a company’s sustainability management system through its policies and actions. Suppliers are assigned to different scoring buckets based on the EcoVadis scoring methodology, which takes into account criteria relating to environmental protection, labor and human rights, business ethics, and sustainable procurement. The higher the score, the better the sustainability performance of the supplier. The scoring ranges were updated in 2023 and aligned with the EcoVadis methodology. Suppliers are now ranked over five buckets instead of four last year. The 2022 scores were adjusted for this change to make comparison possible. The spend data that is used to calculate the indicators for the supplier ESG assessment includes four quarters of data and covers the period October 1, 2022 to September 30, 2023. |
17 | Includes in-scope Financial, Underwriting and Operational risk management policies where ESG risk considerations have been integrated. In-scope policies are those policies where ESG integration was planned. |
Annual Report on Form 20-F 2023 | 507 |
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Capital | Indicator | 2021 | 2020 | Change 2020 to 2021 | 2019 | |||||||||||||
Society: Compliance | ||||||||||||||||||
Policy compliance 1) | ||||||||||||||||||
Proportion employees completing training on Code of Conduct | 98% | 97% | 2pp | 95% | ||||||||||||||
Anti-bribery and corruption | 87% | 89% | (2pp | ) | 89% | |||||||||||||
Conflict of interest | 98% | 92% | 6pp | 85% | ||||||||||||||
Pricing and product development | 97% | 93% | 4pp | 94% | ||||||||||||||
Systematic Integrity Risk Assessment (SIRA) 2) | ||||||||||||||||||
Social and Relationship | Actions completed | 77% | 76% | 1pp | 69% | |||||||||||||
Actions completed and progressing within deadline | 81% | 80% | 1pp | 77% | ||||||||||||||
Incidents | ||||||||||||||||||
Incidents/attempts of fraud | 889 | 4,014 | (77.9% | ) | 4,541 | |||||||||||||
Proportion through employees | 0.1% | NM | NM | NM | ||||||||||||||
Proportion through intermediaries | 21.4% | NM | NM | NM | ||||||||||||||
Proportion through third parties | 78.5% | NM | NM | NM | ||||||||||||||
Fines and settlements 3) | ||||||||||||||||||
Significant fines to address cases of mis-selling | EUR 0.0 million | EUR 8.2 million | NM | EUR 0.3 million |
management Financial information Sustainability information | ||
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Capital | Indicator | 2021 | 2020 | Change 2019 to 2021 3) | 2019 | |||||||||
Society: Operational footprint | ||||||||||||||
Greenhouse gas (GHG) emissions (metric tons CO 2 e)1) | ||||||||||||||
Scope 1 (gas) | 5,557 | NM | (9.5% | ) | 6,138 | |||||||||
Scope 2 (electricity gross/location) | 16,366 | NM | (54.1% | ) | 35,659 | |||||||||
Scope 2 (electricity net/market) | 203 | NM | (60.7% | ) | 516 | |||||||||
Scope 3 (air travel) | 2,101 | NM | (80.4% | ) | 10,739 | |||||||||
Total GHG emissions (gross/location) | 24,024 | NM | (54.3% | ) | 52,536 | |||||||||
Total GHG emissions / EUR million revenue (gross/location) | 1.0 | NM | (48.8% | ) | 1.9 | |||||||||
Total GHG emissions / employee (gross/location) | 1.3 | NM | (52.4% | ) | 2.8 | |||||||||
Total GHG emissions (net/market) | 7,861 | NM | (54.8% | ) | 17,392 | |||||||||
Total GHG emissions / EUR million revenue (net/market) | 0.3 | NM | (49.4% | ) | 0.6 | |||||||||
Total GHG emissions / employee (net/market) | 0.4 | NM | (53.0% | ) | 0.9 | |||||||||
Operational reduction target 2) | ||||||||||||||
Absolute reduction against baseline | (28,512) | NM | (54.3% | ) | NA | |||||||||
Energy (MWh) | ||||||||||||||
Fuel (gas) | 27,288 | NM | (9.0% | ) | 30,002 | |||||||||
Natural | Electricity (renewable) | 49,283 | NM | (39.4% | ) | 81,282 | ||||||||
Green tariff / Renewable Energy | ||||||||||||||
Certificate (REC) | 49,259 | NM | (39.4% | ) | 81,254 | |||||||||
Self-generated | 24 | NM | (11.5% | ) | 28 | |||||||||
Electricity (non-renewable) | 580 | NM | (70.5% | ) | 1,968 | |||||||||
Electricity (total) | 49,863 | NM | (40.1% | ) | 83,249 | |||||||||
Energy (total of fuel and electricity) | 77,151 | NM | (31.9% | ) | 113,252 | |||||||||
Renewable electricity (% of total electricity) | 99% | NM | 1pp | 98% | ||||||||||
Renewable energy (% of total energy) | 64% | NM | (8pp | ) | 72% | |||||||||
Air travel (million km) | ||||||||||||||
Total distance | 16.3 | NM | (84.2% | ) | 103.4 | |||||||||
Travel class as proportion of total distance | ||||||||||||||
Economy | 87% | NM | NA | NM | ||||||||||
Premium | 13% | NM | NA | NM | ||||||||||
Route type as proportion of total distance | ||||||||||||||
<500km | 3% | NM | NA | NM | ||||||||||
>500km | 97% | NM | NA | NM |
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External recognition
As part of our sustainability approach, we actively participate in high-profile sustainability performance ratings, indices, and benchmarks to provide independent recognition and transparency for our stakeholders and wider society inaround the integration of sustainability considerations into our business operations. We also proactively engage with business information platforms incorporating sustainabilityFor the MSCI, Morningstar
Sustainalytics, and ISS ratings, our scoring ambition is to be among the top performance data, including Bloomberg and Refinitiv.
As these assessments are conducted throughout the year, we regularly update our latest scoring and peer positioning viathrough the dedicated ‘
unit | 2023 | 2022 | % | |||||||||||||
Sustainability benchmarks1) | ||||||||||||||||
MSCI ESG rating2) | AAA to CCC | AA (Leader | ) | AA (Leader | ) | Stable | ||||||||||
Morningstar Sustainalytics ESG Risk Rating3) | 0 to 100 | 15.3 (Low Risk | ) | 14.2 (Low Risk | ) | (1.1 points | ) | |||||||||
ISS ESG corporate rating4) | A+ to D- | C+ (Prime | ) | C+ (Prime | ) | Stable | ||||||||||
S&P Global CSA score5) | 0 to 100 | 56 (Top Quartile | ) | 55 | 1pp | |||||||||||
Moody’s overall ESG score6) | 0 to 100 | 57 | 59 | (2pp | ) | |||||||||||
LSEG ESG score7) | A+ to D- | A (88 | ) | A (86 | ) | 2pp | ||||||||||
FTSE4Good index series constituent8) | Index Member | Index Member | Index Member | Stable | ||||||||||||
Bloomberg ESG Performance score9) | 0 to 10 | 5.6 (Leading | ) | 4.2 (Leading | ) | 1.4 points | ||||||||||
Bloomberg ESG Disclosure score9) | 0 to 100 | 56 | 53 | 3pp | ||||||||||||
CDP (Climate change) score10) | A to D- | C | C | Stable | ||||||||||||
EcoVadis scorecard11) | 0 to 100 | 62 (Top Quartile | ) | 61 (Top Quartile | ) | 1pp |
Sustainability benchmark scoring reflects the |
As of MSCI’s last report update of January 30 2024, Aegon received an MSCI ESG Rating of AA. The use by Aegon of any MSCI ESG research LLC or its affiliates (“MSCI”) data, and the |
In June 2023, Aegon received an ESG Risk Rating of 15.3 and was assessed by Morningstar Sustainalytics to be at low risk of experiencing material financial impacts from ESG factors. In no event the rating shall be construed as investment advice or expert opinion as defined by the applicable legislation. Risk categories defined by scoring, from ‘Negligible’ (0) to ‘Severe’ (>40). Copyright © |
Their use is subject to conditions available at https://www. sustainalytics.com/legal-disclaimers. |
© |
As of 2023 Aegon is placed at 78th percentile (i.e. top quartile) in the ‘INS Insurance’ industry group. © 2024 S&P Global Inc. All rights reserved. |
6 | Sector-Zone Average Score: 47 (compared to Aegon’s score of 57). © 2024 Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their affiliates and licensors. All rights reserved. |
7 | Formerly reported as “Refinitiv ESG Score”. Aegon is ranked 4/348 Insurance Companies. Scoring refreshed weekly by LSEG and potentially subject to change (2023 score and rank referenced on 18/01/2024). © 2024 LSEG. All rights reserved. LSEG ESG Information is proprietary to LSEG Limited and/or its affiliates (“LSEG”). |
8 | As of June 2023 FTSE Russell |
Scoring refreshed periodically by Bloomberg and potentially subject to change (2023 and 2022 scores referenced on 19/01/2024). © |
© |
11 | While our performance has held steady, EcoVadis have changed the scoring criteria for medal awards, requiring higher percentile rankings for each medal category (moving the qualifying ‘SIlver’ medal ranking up from 75th to 85th percentile). As a result, Aegon has been awarded a ‘Bronze’ medal following its latest re-assessment. © EcoVadis 2024 - All rights reserved. |
508 | Annual Report on Form 20-F 2023
![]() | Disclaimer | |||
Disclaimer
Cautionary note regarding
This document includes the following
Currency exchange rates
This document contains certain information about Aegon’s results, financial condition and revenue generating investments presented in USD for the Americas and Asia, and in GBP for the United Kingdom, because those businesses operate and are managed primarily in those currencies. Certain comparative information presented on a constant currency basis eliminates the effects of changes in currency exchange rates. None of this information is a substitute for or superior to financial information about Aegon presented in EUR, which is the currency of Aegon’s primary financial statements.
Forward-looking statements
The statements contained in this document that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: aim, believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, goal, should, would, could, is confident, will, and similar expressions as they relate to Aegon. These statements may contain information about financial prospects, economic conditions and trends and involve risks and uncertainties. In addition, any statements that refer to our sustainability, environmental and social targets, commitments, goals, efforts and expectations and other events or circumstances that are partially dependent on future events are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Aegon undertakes no obligation, and expressly disclaims any duty, to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially and adversely from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties.
Such risks and uncertainties include but are not limited to the following:
Civil unrest, (geo-) political tensions, military action or other instability in a country or geographic region; |
Annual Report on Form 20-F 2023 | 509 |
![]() | About Aegon Governance and risk management Financial information Sustainability information |
• Lowering of one or more of Aegon’s debt ratings issued by recognized rating organizations and the adverse impact such action may have on Aegon’s ability to raise capital and on its liquidity and financial condition; |
• Lowering of one or more of insurer financial strength ratings of Aegon’s insurance subsidiaries and the adverse impact such action may have on the written premium, policy retention, profitability and liquidity of its insurance subsidiaries; |
• The effect of applicable Bermuda solvency requirements, the European Union’s Solvency II requirements, and applicable equivalent solvency requirements and other regulations in other jurisdictions affecting the capital Aegon is required to maintain; |
• Changes in the European Commissions’ or European regulator’s position on the equivalence of the supervisory regime for insurance and reinsurance undertakings in force in Bermuda; • Changes affecting interest rate levels and |
• Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates; |
• Changes affecting inflation levels, particularly in the United States, the Netherlands and the United Kingdom; • Changes in the availability of, and costs associated with, liquidity sources such as bank and capital markets funding, as well as conditions in the credit markets in general such as changes in borrower and counterparty creditworthiness; |
• Increasing levels of competition, particularly in the United States, the Netherlands, the United Kingdom and emerging markets; |
• Catastrophic events, either manmade or by nature, including by way of example acts of God, acts of terrorism, acts of war and pandemics, could result in material losses and significantly interrupt Aegon’s business; |
• The frequency and severity of insured loss events; |
• Changes affecting longevity, mortality, morbidity, persistence and other factors that may impact the profitability of Aegon’s insurance products; |
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• Aegon’s projected results are highly sensitive to complex mathematical models of financial markets, mortality, longevity, and other dynamic systems subject to shocks and unpredictable volatility. Should assumptions to these models later prove incorrect, or should errors in those models escape the controls in place to detect them, future performance will vary from projected results; |
• Reinsurers to whom Aegon has ceded significant underwriting risks may fail to meet their obligations; |
• Changes in customer behavior and public opinion in general related to, among other things, the type of products Aegon sells, including legal, regulatory or commercial necessity to meet changing customer expectations; |
• Customer responsiveness to both new products and distribution channels; |
• Third-party information used by us may prove to be inaccurate and change over time as methodologies and data availability and quality continue to evolve impacting our results and disclosures; • As Aegon’s operations support complex transactions and are highly dependent on the proper functioning of information technology, operational risks such as system disruptions or failures, security or data privacy breaches, cyberattacks, human error, failure to safeguard personally identifiable information, changes in operational practices or inadequate controls including with respect to third parties with which |
• The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Aegon’s ability to complete, or obtain regulatory approval for, acquisitions and divestitures, integrate acquisitions, and |
its ability to separate businesses as part of divestitures; • Aegon’s failure to achieve anticipated levels of earnings or operational efficiencies, as well as other management initiatives related to cost savings, Cash Capital at Holding, gross financial leverage and free cash flow; |
• Changes in the policies of central banks and/or governments; |
• Litigation or regulatory action that could require Aegon to pay significant damages or change the way Aegon does business; |
• Competitive, legal, regulatory, or tax changes that affect profitability, the distribution cost of or demand for Aegon’s products; |
• Consequences of an actual or potential break-up of the European |
• Changes in laws and regulations, or the interpretation thereof by regulators and courts, including as a result of comprehensive reform or shifts away from multilateral approaches to regulation of global or national operations, particularly regarding those laws and regulations related to ESG matters, those affecting Aegon’s operations’ ability to hire and retain key personnel, taxation of Aegon companies, the products Aegon sells, and the attractiveness of certain products to its consumers; |
• Regulatory changes relating to the pensions, investment, and insurance industries in the jurisdictions in which Aegon operates; |
510 | Annual Report on Form 20-F 2023
Disclaimer | ||||
• | Standard setting initiatives of supranational standard setting bodies such as the Financial Stability Board and the International Association of Insurance Supervisors or changes to such standards that may have an impact on regional (such as EU), national or US federal or state level financial regulation or the application thereof to Aegon, including the designation of Aegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII); |
Changes in accounting regulations and policies or a change by Aegon in applying such regulations and policies, voluntarily or otherwise, which may affect Aegon’s reported results, shareholders’ equity or regulatory capital adequacy levels;
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Contact
Head office
Aegon N.V.
Aegonplein 50
2591 TV The Hague
The Netherlands
Telephone: +31 (0) 70 344 32 10
www.aegon.com
Investor relations
Telephone: +31 (0) 70 344 83 05
E-mail:
Media relations
Telephone: +31 (0) 70 344 89 56
E-mail:
Agent for service in the United States of America
Andrew S. Williams
Telephone: +1 443 475 3480
E-mail:
Colophon | ||
Consultancy and design | ||
Editing and production | Aegon Corporate Communications (NL) | |
Typesetting |
512 | Annual Report on Form 20-F 20212023
![]() | Documents on display | |||
Documents on display
Aegon’s SEC filings are available on the SEC’s website at http://www.sec.gov. The SEC’s website contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. The information on that website is not part of this report.
Aegon filesalso make available on the Investors section of Aegon’s website, free of charge, Aegon’s annual reports on Form 20-F and the text of our reports on Form 6-K, including any amendments to these reports, as well as certain other SEC filings, as soon as reasonably practicable after these reports are electronically filed with and furnishes other informationor furnished to the SEC. Aegon’s website address is www.aegon.com. The SEC’s web siteinformation on that website is www.sec.gov.
Aegon announce material financial information to Aegon’s investors using Aegon’s Investors website (aegon.com/investors/), SEC filings, press releases, public conference calls, and webcasts. Aegon use these channels, as well as social media, to communicate with the users and the public about Aegon’s company, Aegon’s businesses, and other issues. It is possible that the information Aegon post on these channels could be deemed to be material information. Therefore, Aegon encourage investors, the media, and others interested in Aegon to review the information Aegon posts on the channels listed on Aegon’s Investors website. Information contained on Aegon’s website is not part of this annual report on Form 20-F or any other filings Aegon makes with the SEC.
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Exhibits
![]() 514 | Annual Report on Form 20-F
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Signatures
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.
Aegon | ||
/s/ Matthew J. Rider | ||
Matthew J. Rider | ||
Chief Financial Officer | ||
Date: April 3, 2024 |
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