Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
5.500% Fixed-to-Floating Subordinated Notes due 2048 |
AG48 |
New York Stock Exchange |
1 |
Identity of Directors, Senior Management and Advisers |
n/a | ||
2 |
Offer Statistics and Expected Timetable |
n/a | ||
3 |
Key Information |
|||
3A |
[Reserved] |
n/a | ||
3B |
Capitalization and indebtedness |
n/a | ||
3C |
Reasons for the offer and use of proceeds |
n/a | ||
3D |
Risk factors |
360-383 | ||
4 |
Information on the Company |
|||
4A |
History and development of the Company |
2-3, 8-29, 282-283, 451-452 | ||
4B |
Business overview |
89-92, 335-359, 384 | ||
4C |
Organizational structure |
2-3, 383-284 | ||
4D |
Property, plants and equipment |
385 | ||
4E |
Unresolved Staff Comments |
n/a | ||
5 |
Operating and Financial Review and Prospects |
|||
5A |
Operating results |
102-124 | ||
5B |
Liquidity and capital resources |
83-88, 213-216, 246-247, 256-261, 387 | ||
5C |
Research and development, patent and licenses etc. |
n/a | ||
5D |
Trend information |
8-29, 100-124 | ||
5E |
Critical accounting estimates |
164-169, 274-278 | ||
6 |
Directors, Senior Management and Employees |
|||
6A |
Directors and senior management |
42-47 | ||
6B |
Compensation |
57-76, 205-207, 285-286 | ||
6C |
Board practices |
36-40 | ||
6D |
Employees |
15, 23-25, 93, 197, 386 | ||
6E |
Share ownership |
36-40, 72-73, 320-322 | ||
7 |
Major Shareholders and Related Party Transactions |
|||
7A |
Major shareholders |
37-40, 320-322 | ||
7B |
Related party transactions |
285-286 | ||
7C |
Interest of experts and counsel |
n/a | ||
8 |
Financial Information |
|||
8A |
Consolidated Statements and Other Financial Information |
126-132, 274-278, 323-329, 376-378, 387 | ||
8B |
Significant Changes |
n/a | ||
9 |
The Offer and Listing |
|||
9A |
Offer and listing details |
388 | ||
9B |
Plan of distribution |
n/a | ||
9C |
Markets |
388 | ||
9D |
Selling shareholders |
n/a | ||
9E |
Dilution |
n/a | ||
9F |
Expenses of the issue |
n/a |
Aegon Annual Report on Form 20-F 2022 |
10 |
Additional Information |
|||
10A |
Share capital |
n/a | ||
10B |
Memorandum and articles of association |
389-390 | ||
10C |
Material contracts |
392 | ||
10D |
Exchange controls |
393 | ||
10E |
Taxation |
394-397 | ||
10F |
Dividends and paying agents |
n/a | ||
10G |
Statement by experts |
n/a | ||
10H |
Documents on display |
452 | ||
10I |
Subsidiary Information |
n/a | ||
10J |
Annual Report to Security Holders |
n/a | ||
11 |
Quantitative and Qualitative Disclosures About Market Risk |
77-82, 83-88, 169-190, 239-242 | ||
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 |
50-53 | ||
16B |
Code of Ethics |
93 | ||
16C |
Principal Accountant Fees and Services |
398 | ||
16D |
Exemptions from the Listing Standards for Audit Committees |
n/a | ||
16E |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
399 | ||
16F |
Change in Registrant’s Certifying Accountant |
n/a | ||
16G |
Corporate Governance |
36-40, 391 | ||
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 |
126-318, 323-329 | ||
19 |
Exhibits |
453 |
Aegon Annual Report on Form 20-F 2022 |
Contents | ||
2 |
||
4 |
||
6 |
||
8 |
||
33 | ||
34 |
||
77 |
||
89 |
||
97 | ||
102 |
||
126 |
||
335 |
||
400 | ||
401 |
||
405 |
||
410 |
||
419 |
||
427 |
||
434 |
VI |
Aegon Annual Report on Form 20-F 2022 |
Welcome to Aegon’s Annual Report on Form 20-F 2022 | ||||
Aegon Annual Report on Form 20-F 2022 1 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
Million customers |
Women in senior management 2 | |||||
29 .5 |
36 % | |||||
Employee engagement score |
Weighted average carbon intensity 3 | |||||
70 % |
39 0 |
1 |
On October 27, 2022, Aegon announced that it has reached an agreement with a.s.r. to combine its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. The closing of the transaction is subject to customary conditions. Based on the required steps, and necessary approvals, the transaction is expected to close in the second half of 2023. |
2 |
Please refer to page 23 and page 405 for further information. |
3 |
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 433. |
2 |
Aegon Annual Report on Form 20-F 2022 |
About Aegon | ||||
Aegon’s core markets | ||
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In the United States, Aegon operates primarily under two brands: Transamerica and World Financial Group Insurance Agency, an affiliated insurance agency. 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, and stable value solutions to employers and their employees. Through several distribution channels, Transamerica’s Individual Solutions division offers life insurance, annuities, and mutual funds to retail customers. | |
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In the Netherlands, Aegon focuses on life insurance, long-term savings, pension and annuity solutions, and mortgages. The Workplace Solutions business focuses on new-style defined contribution pension solutions, associated disability services, and pensions administration. Under the Knab brand, Aegon provides digital banking solutions. In 2022, we announced that Aegon the Netherlands will be combined with a.s.r. to create a leading Dutch insurance company1 .In the United Kingdom, Aegon is the market-leading investment platform, providing a broad range of investment, retirement solutions, and protection products to individuals, advisers, and employers. Aegon UK accesses customers through the workplace and retail financial advisers. | |
Aegon’s growth markets | ||
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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. | |
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In Brazil, Aegon has a 54.9% economic interest, inclusive of 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. Together with Banco Cooperativo do Brasil (Bancoob), MAG Seguros also operates a joint venture company dedicated to providing life insurance and pension products within the Sicoob, Brazil’s largest cooperative financial system. | |
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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. | |
One global asset manager | ||
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Aegon Asset Management (Aegon AM) is an active global investment business that manages assets of EUR 293 billion for a global client base consisting of pension plans, public funds, insurance companies (including Aegon’s subsidiaries), banks, wealth managers, family offices, and foundations. Aegon AM is active in Aegon’s core and growth markets, as well as in France, Germany, and Hungary. Aegon AM owns 49% of Aegon-Industrial Fund Management Company, a Shanghai-based asset manager. |
Aegon Annual Report on Form 20-F 2022 3 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
2022 milestones |
||
Q1 |
Q2 | |
![]() |
◆ |
Following Russia’s invasion of Ukraine, Aegon announces it will not make future investments in companies based in Russia or Belarus, and that it will update its Responsible Investment Policy accordingly. |
◆ |
Transamerica completes its lump-sum buyout program with an 18% take-up rate. The program had been made available to certain policyholders of variable annuities with guaranteed minimum income benefits. |
◆ |
Aegon-Industrial Fund Management Company, Aegon’s asset management joint venture in China, receives the Excellence Award for Corporate Social Responsibility from the Shanghai Daily |
◆ |
In the Netherlands, Aegon lends its support to the Stap vooruit (“Step forward”) program, an initiative by 14 NGOs to help people at risk of experiencing debt-related poverty to develop their financial resilience. |
◆ |
Transamerica earns a score of 100% in the Human Rights Campaign Foundation’s 2022 Corporate Equality Index (CEI), which measures workplace equality for LGBTQ+ employees. |
◆ |
Aegon completes the divestment of its Hungarian businesses to Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG). This is the first step in the completion of the sale of Aegon’s insurance, pension, and asset management businesses in Central & Eastern Europe to VIG for EUR 830 million, as announced in November 2020. |
◆ |
Transamerica acquires TAG Resources, strengthening its competitive position in the pooled retirement plan market, a key strategic growth driver for the business. |
◆ |
Aegon completes a tender offer for selected subordinated notes, which was more successful than initially anticipated. A total of EUR 429 million of subordinated notes were repurchased, reducing Aegon N.V.’s gross financial leverage 1 into the targeted range of EUR 5.0-5.5 billion. |
◆ |
Aegon UK transfers GBP 3 billion of customer assets into strategies that consider environmental, social, and governance (ESG) credentials, as part of Aegon’s commitment to transition its default UK-based pension funds to net zero by 2050. |
◆ |
Aegon completes the divestment of its business in Turkey to VIG. This is the second step in the completion of the sale of Aegon’s businesses in Central & Eastern Europe to VIG. |
◆ |
Aegon AM is named Responsible Investor of the Year in the asset manager category at the Insurance Asset Risk Awards 2022 - UK & Europe. |
◆ |
Effective the second quarter of 2022, Aegon AM partnered with Taurus Investment Holding in the launch of a USD 600 million venture in the United States to acquire value-add multifamily dwellings and transition them to low-carbon, energy-efficient buildings. |
◆ |
Aegon is included in the newly launched AEX ESG Index, consisting of companies included in the two main indices of the Euronext Amsterdam Stock Exchange that demonstrate best ESG practices. |
◆ |
Transamerica adds to its growing suite of workplace financial wellness solutions with the Emergency Savings Account product, enabling employers to help staff save for unexpected events and improve their financial wellbeing. |
1 |
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. |
4 |
Aegon Annual Report on Form 20-F 2022 |
About Aegon | ||||
Q3 |
Q4 | |
![]() |
◆ |
Aegon’s digital-only bank in the Netherlands, Knab, celebrates its 10 th anniversary. The bank grew its fee-paying customer base by over 44,000 to 346,000 in 2022. The 10-year milestone is shared with Aegon Cappital, which was established as the Netherlands’ first Premium Pension Institution in 2012, and has since grown to become the market leader. Today, Aegon Cappital administers pension plans for more than 5,600 employers in the Netherlands with a 99% retention rate. |
◆ |
Transamerica teams up with Smart and Finhabits to expand retirement plan coverage for underserved (small) businesses and their employees. The new program offers a simple, bilingual, and affordable alternative to state-mandated retirement plans in California and other US states. |
◆ |
Transamerica achieves its target of USD 450 million long-term care rate increases and continues to work with state regulators to get pending and future actuarially justified rate increases approved. |
◆ |
Aegon announces it will combine its Dutch operations with a.s.r. The combination will create a leading Dutch insurance company. This marks a pivotal step towards Aegon’s ambition to build leaders in its chosen markets. |
◆ |
Aegon completes the divestment of its 50% stake in the Spanish insurance joint venture with Liberbank to Unicaja Banco as announced in May 2022. |
◆ |
Aegon appoints a Global Head of Inclusion and Diversity. Her responsibilities include creating the conditions for a diverse and inclusive working environment in line with Aegon’s purpose and sustainability approach. |
◆ |
Transamerica Life (Bermuda) reinsures a closed block life insurance portfolio with Transamerica to better align and manage risks and free up excess capital. |
◆ |
Transamerica announces it will maintain full ownership of the variable annuities portfolio in the near term and maximize its value through active management. |
◆ |
Aegon completes the final tranche of the EUR 300 million share buyback program announced following the completion of the sale of the company’s Hungarian operations. |
◆ |
The number of licensed life agents in World Financial Group grows to more than 62,000, a 20% increase compared with the fourth quarter of 2021, adding to the strength of this distribution channel. |
Aegon Annual Report on Form 20-F 2022 5 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
6 |
Aegon Annual Report on Form 20-F 2022 |
About Aegon | ||||
Aegon Annual Report on Form 20-F 2022 7 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
8 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
Aegon Annual Report on Form 20-F 2022 9 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
United States: Individual Solutions (selected life insurance products, investment products, and mutual funds), and Workplace Solutions (middle-market retirement plans and voluntary employee benefits); |
◆ |
The Netherlands: Workplace Solutions, mortgage origination, and banking; |
◆ |
United Kingdom: Workplace and Retail platform business, and protection. |
◆ |
United States: Fixed and Variable Annuities with interest-rate-sensitive riders, and stand-alone long-term care; |
◆ |
The Netherlands: term life, individual deferred annuities, and defined benefit group pensions. |
10 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
Aegon Annual Report on Form 20-F 2022 11 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
Improving operational performance In 2020, we began taking concrete steps to transform the company to improve our long-term performance and ensure we continue to create value for our customers, shareholders, and other stakeholders. We have executed a rigorous and granular company-wide operational improvement plan that comprised 1,199 specific initiatives. The aim of the plan was to improve Aegon’s operating performance by reducing costs, expanding margins, and growing profitably. Of the 1,199 initiatives executed between the launch of the operational improvement plan in 2020 and the end of 2022, 921 were related to expense savings. As of year-end 2022, the operational improvement plan has resulted in an operating result uplift of EUR 627 million outperforming our expectations one year earlier than expected. Compared with the base year 2019, Aegon recorded a benefit from expense initiatives of EUR 366 million, or 92% of the savings targeted for 2023. Growth initiatives contributed EUR 262 million to the operating result. This is well above our target, and required less additional expenses than originally envisaged. As a result, Aegon achieved a greater net reduction in expense savings than the company had targeted.Given the overall success of the program, and in light of upcoming changes to the group’s structure and reporting due to the transaction with a.s.r., Aegon has decided to close out the reporting on the operational improvement program. At the same time, improving efficiency, and driving commercial momentum remain key focus areas for Aegon going forward. |
12 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
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 the portfolio by 2025. |
2022 climate performance indicators ◆ Weighted average carbon intensity of our corporate fixed income and listed equity general account assets: 390 metric tons CO2 e/EURm revenue2 ◆ 20% reduction in WACI against 2019◆ Operational carbon footprint3 16,999 metric tons CO2 e◆ Reduction of operational carbon footprint against 2019: 59%◆ Green electricity purchased: 94%![]() |
1 |
At Aegon, we assess trends and developments on a regular basis to understand how they may impact our business and our stakeholders. We conduct a Business Environment Scan (BES) to identify emerging structural trends, risks, and opportunities with the potential to impact our financial strength and competitive position. Topics and developments identified through the BES are also factored into the Double Materiality Assessment (DMA), initiated by Aegon in 2022. The DMA complements the BES by enabling us to evaluate a range of sustainability-related topics, that have a high impact on Aegon and/or on which Aegon can impact society and the environment. |
2 |
For details on the methodology used, please see our TCFD disclosure (Methodology) on page 427. |
3 |
For details on the methodology used, please see footnote 12 Society: Operational footprint on page 446. |
Aegon Annual Report on Form 20-F 2022 13 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
14 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
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 inclusion and diversity, including by sharing their own inclusion stories and championing a specific area of diversity excellence among employees. |
1 |
Scope 1 and scope 2 emissions. |
Transamerica’s Employee Resource Groups have their say Around the world, Aegon’s Employee Resource Groups (ERG) play an important role in making sure all employees have a say in the company’s future direction and that their specific needs are met during our transformation program. Our US business, Transamerica, has 12 ERGs, the first of which, the Women’s Impact Network, was launched in 2012. In 2022, we provided new development opportunities for the leaders of our ERGs. At the start of the year, the leaders of the 12 groups gathered with their executive sponsors for Transamerica’s first annual ERG leader summit to present their annual plans and discuss opportunities for cross-ERG collaborations. Then, on August 10, the ERG leaders met with Transamerica CEO, Will Fuller, and Aegon CEO, Lard Friese, to discuss their groups’ respective accomplishments, challenges, and opportunities. This was followed by a development workshop featuring Johns Hopkins Carey Business School on “Managing in a Diverse and Global World” and leaders from the 12 Transamerica ERGs. |
Aegon Annual Report on Form 20-F 2022 15 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
Asset manager: Our solutions Aegon Asset Management has a Responsible Investment Framework that reflects the key elements of our Responsible Investment Policy, as well as similar policies put forward by Aegon AM’s clients. The framework is structured as follows: ◆ ESG integration – Material ESG factors are fundamental to our investment decision-making across all Aegon AM portfolios. By integrating ESG considerations into traditional financial analysis, the Aegon AM research team arrives at an independent view of an issuer’s fundamentals.◆ Active ownership – Aegon actively engages with investee companies to improve their ESG profile and address sustainability issues. We also exercise our shareholder voting rights to support our engagement efforts and enhance long-term value creation for all stakeholders.◆ Solutions – Aegon AM provides a range of responsible investment solutions to pursue ESG objectives alongside financial returns, based on four categories:1) exclusion-based strategies 2) best-in-class 3) sustainability-themed strategies 4) impact investments Further information about Aegon Asset Management’s activities can be found in the dedicated Responsible Investment Report published by Aegon AM. |
Aegon joins Aegon AM as a signatory to the Principles for Responsible Investment The Principles for Responsible Investment (PRI) is a United Nations-supported international network of financial institutions working together to implement its six aspirational principles. The “Principles” provide a de-facto industry standard that encourages companies to incorporate ESG issues into their investment practices. In 2022, Aegon became a company-wide signatory to the PRI, joining Aegon AM. Committing to the Principles will help us to align our responsible investment approach with market best practice, enabling us to continue to meet the expectations of our stakeholders. |
16 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
Aegon Annual Report on Form 20-F 2022 17 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
18 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
Our outputs |
Outcome for our stakeholders |
Aegon Annual Report on Form 20-F 2022 19 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
20 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
What does financial wellbeing look like to you? With people living longer, it is time to rethink the traditional industry concept of financial security. In the United Kingdom, Aegon is building on its previous work with the Initiative for Financial Wellbeing and Edinburgh University, by advancing research on the topic of financial wellbeing. Our conclusion is that being financially well is about more than just money; to live their best life, people also need to take steps to improve their financial mindset. For example, the research shows that the more clearly someone can visualize their future financial status, the more likely they are to achieve the kind of retirement they want. We have therefore identified 10 different building blocks that contribute to an individual’s financial wellbeing: ◆ Money building blocks: income, long-term savings, a strong safety net, debt, assets◆ Mindset building blocks: happiness, future self, written plans, social comparisons, long-term perspectiveA series of customer-focused applications are being designed around these concepts. In 2022, we began developing the second iteration of the Future Self Tool, which helps future retirees envisage what life will look like after retirement. Aegon UK also updated its website with articles, podcasts, and other informative content on the subject of financial wellbeing. |
Aegon Annual Report on Form 20-F 2022 21 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
22 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
Our Best Life behaviors We tune in ◆ We serve a diverse, ever-changing world and work tirelessly to stay relevant◆ We are curious and never stop learning from our customers, each other, and the wider world◆ We ensure all people around us feel seen, heard, and valuedWe step up ◆ We are a company of ambitious, positive problem-solvers who get things done◆ We excel by committing, following through, and finishing what we start◆ We are a team, not a group of individuals.Collaboration is our life forceWe are a force for good ◆ It is our duty to leave things better than we find them◆ We speak up, ask for help, and think before we act◆ We prove our integrity daily, through our words and actions |
Aegon Annual Report on Form 20-F 2022 23 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
Mentoring at Aegon AM |
||||
At Aegon, we believe that mentoring plays a key role in building an inclusive culture. Experience shows us that when employees experience mentorship from peers, they are more likely to feel included at work regardless of formal inclusion systems in place. In early 2022, Aegon Asset Management launched Aegon’s first digital mentoring platform as a pilot for colleagues globally. The platform is open to all Aegon AM employees, who can join as a mentor or mentee, or both, with some 300 employees taking part within the first six months of launch. It has helped colleagues identify strengths and areas for development, lead change, and cope with difficult situations, and helped to prepare aspiring leaders of the business. |
24 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
Aegon Annual Report on Form 20-F 2022 25 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
26 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
Aegon Annual Report on Form 20-F 2022 27 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
Helping to bring clean energy to the community in Cedar Rapids |
||||
In July 2022, US-based energy company, Alliant Energy, welcomed Transamerica and Aegon Asset Management as anchor tenants in a new 4.5-megawatt solar garden being constructed close to Transamerica’s offices in Cedar Rapids, Iowa. Transamerica and Aegon Asset Management have committed to purchasing 60% of the garden’s solar blocks.The solar garden will not only supply clean energy to the Transamerica facilities, but also to homes in Cedar Rapids and local non-profit organizations. One of the main beneficiaries will be Cedar Valley Habitat for Humanity, a non-profit housing ministry dedicated to providing affordable homes for local families. Alliant Energy will donate solar blocks to the charity, and expects to issue up to USD 600,000 in energy bill credits to Habitat for Humanity’s participating residents over the garden’s 20-year lifespan. |
28 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
◆ |
Global Chief Information Security Officer (CISO) responsible for the execution and oversight of Aegon’s company-wide security strategy and day-to-day |
◆ |
Information security officers responsible for execution and oversight in all relevant business units. |
◆ |
Dedicated information security teams in business units responsible for the execution of security functions in alignment with global and local regulations. |
◆ |
Global Information Security Advisory Counsel (GISAC) to support 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. |
◆ |
Group Chief Privacy Officer, responsible for privacy compliance strategy and privacy oversight. |
◆ |
Data Protection Officers in individual business units, responsible for executing the statutory tasks of the Data Privacy Office (DPO) function. |
◆ |
Operational privacy teams in relevant business units, to execute privacy advisory, control testing, and attestations. |
◆ |
Privacy Executives, accountable for privacy compliance at a business unit level. Privacy Executives are often part of the Executive Board or relevant management committees. |
Aegon Annual Report on Form 20-F 2022 29 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
Reduce leverage |
EUR 5.0-5.5 billion Gross financial leverage target |
Implement expense savings |
EUR 400 million Lower addressable expenses vs. 2019 |
Increase free cash flows |
EUR 1.4-1.6 billion Cumulative free cash flows over 2021-2023 |
Distribute capital to shareholders |
Around EUR 0.30 dividend per share over 2023 |
30 |
Aegon Annual Report on Form 20-F 2022 |
Our strategy and value creation | ||||
1. | Aegon wants to be there for its customers. This means providing solutions that create long-term value and developing products and services that fully meet their needs and expectations at every stage of their lives. |
Customer satisfaction in each of our core markets, which is measured by benchmarked Net Promoter Score(SM), should be in line with or above the average of those of our industry peers. |
• |
Our US business, Transamerica, performed in line with the market average, while Aegon UK and Aegon the Netherlands were below the market average. The performance in Aegon UK reflects service challenges during the year. Market uncertainty has also led to customer concerns across all our markets. |
2 | For us to deliver on our promises to all our stakeholders, it is important that our employees are fully engaged and motivated to contribute to this task. |
• |
The employee engagement score in 2022 increased by 2%-points to 70%. All the main drivers of engagement (leadership, recognition, career, and levels of stress) improved compared to 2021. We believe this has been driven by the launch of our revitalized purpose and behaviors. |
3 | At Aegon, we value a diverse workforce, because we believe including different perspectives is critical for richer debates and innovation. |
• |
The proportion of female representation among our senior management increased from 34% to 36% in 2022. |
4 | Aegon seeks to ensure the reduction of the weighted average carbon intensity of the company’s investment portfolio, in line with our net-zero ambitions. |
• |
In 2022, the weighted average carbon intensity of our own investment portfolio reduced by 20% compared with 2019. This means we are on track to meet our target for a 25% reduction in the carbon intensity of our corporate fixed income and listed equity in our general account by 2025. |
5 | Aegon is aiming to reduce our absolute operational carbon emissions (scopes 1&2). |
• |
In 2022, the operational carbon footprint fell by 59%. This is well ahead of our target of a 25% reduction in absolute operational carbon emissions by 2025, compared with the 2019 baseline. |
Aegon Annual Report on Form 20-F 2022 31 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
Customers |
• Customer satisfaction in each of our core markets (measured by benchmarked Net Promoter Score(SM) ) should be in line with or above the average of our peers |
Employees 1 |
• A 72% employee engagement score for 2023, measured through our Global Employee Survey• Minimum level of 38% of female representation amongst our senior management for 2023 |
Society |
• At least 25% reduction in weighted average carbon intensity of our corporate fixed income and listed equity in our general account by 2025• 25% reduction in absolute operational carbon emissions (Scopes 1&2) by 2025 against 2019 baseline• 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 the portfolio by 2025 |
32 |
Aegon Annual Report on Form 20-F 2022 |
Governance and risk management 2022 |
||||
34 |
||||
34 |
||||
36 |
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41 |
||||
42 |
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48 |
||||
57 |
||||
77 |
||||
77 |
||||
83 |
||||
89 |
||||
89 |
||||
93 |
||||
94 |
Aegon Annual Report on Form 20-F 2022 | 33 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
Letter from our Supervisory Board Chairman | ||||
Aegon Annual Report on Form 20-F 2022 35 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
General Meeting of Shareholders |
◆ |
Supervisory Board |
◆ |
Executive Board |
36 |
Aegon Annual Report on Form 20-F 2022 |
Corporate governance | ||||
◆ |
Audit Committee |
◆ |
Risk Committee |
◆ |
Remuneration Committee |
◆ |
Nomination and Governance Committee |
Aegon Annual Report on Form 20-F 2022 37 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
The acquisition by a third party of an interest in Aegon N.V. amounting to 15% or more |
◆ |
A tender offer for Aegon N.V. shares, or |
◆ |
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 company’s Executive and Supervisory Boards |
38 |
Aegon Annual Report on Form 20-F 2022 |
Corporate governance | ||||
Aegon Annual Report on Form 20-F 2022 39 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
40 |
Aegon Annual Report on Form 20-F 2022 |
Sustainability governance | ||||
Aegon Annual Report on Form 20-F 2022 41 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
42 |
Aegon Annual Report on Form 20-F 2022 |
Composition of the Boards | ||||
Aegon Annual Report on Form 20-F 2022 43 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
44 |
Aegon Annual Report on Form 20-F 2022 |
Composition of the Boards | ||||
Aegon Annual Report on Form 20-F 2022 45 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
46 |
Aegon Annual Report on Form 20-F 2022 |
Composition of the Boards | ||||
Aegon Annual Report on Form 20-F 2022 47 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
48 |
Aegon Annual Report on Form 20-F 2022 |
Report of the Supervisory Board | ||||
Aegon Annual Report on Form 20-F 2022 49 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
The war in Ukraine and the direct and indirect impacts on Aegon’s businesses, customers, and investments |
◆ |
Ongoing COVID-19 developments |
◆ |
Selection of the new independent auditor |
◆ |
Executive Board and senior management succession planning |
◆ |
Executive remuneration, including the remuneration framework |
◆ |
Supervisory Board effectiveness and composition |
◆ |
Corporate governance matters |
◆ |
Human resources, including talent development, organizational health developments, cultural change, and inclusion and diversity |
◆ |
Capital generation and solvency capital positions, including management actions, and developments in the financial markets |
◆ |
Enterprise risk management, cybersecurity and information security strategies, and the preparedness for global incidents |
◆ |
Investor relations, including Aegon’s shareholder base, market analysis and roadshow feedback; |
◆ |
Highlighted topics by Supervisory Board Committees |
◆ |
Regulatory changes at both a regional and global level |
◆ |
Annual Global Employee Survey. The Supervisory Board discussed the outcome of the 2022 survey in detail in the first quarter of 2023; |
◆ |
Tax policy and tax developments |
◆ |
Technology, including the technology strategy, IT security, technological developments, and innovations |
◆ |
HR Plan |
◆ |
Group Recovery plan |
◆ |
Own Risk and Solvency Assessment |
◆ |
Solvency and Financial Condition Report |
50 |
Aegon Annual Report on Form 20-F 2022 |
Report of the Supervisory Board | ||||
Name |
Regular SB meeting |
Audit Committee | Member | Risk Committee | Member | Combined Audit & Risk Committee |
Remuneration Committee |
Member | Nomination & Governance Committee |
Member | Additional SB (sub-committee) mtgs. /calls 3) |
Additional Audit (sub) Committee mtgs. / calls 3) |
||||||||||||||||||||||||||||||||||||
Total no. of mtgs. |
7 | 5 | 5 | 1 | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||
SB members 1) |
||||||||||||||||||||||||||||||||||||||||||||||||
Mr. William Connelly |
7/7 | 6/6 | v | 6/6 | Chair | 10/10 | ||||||||||||||||||||||||||||||||||||||||||
Mr. Mark Ellman |
7/7 | 5/5 | v | 1/1 | 6/6 | v | 8/9 | |||||||||||||||||||||||||||||||||||||||||
Ms. Karen Fawcett 2) |
4/4 | 2/2 | v | 1/1 | 3/3 | v | 5/5 | |||||||||||||||||||||||||||||||||||||||||
Mr. Jack McGarry |
7/7 | 5/5 | v | 1/1 | 6/6 | v | 7/7 | 7/7 | ||||||||||||||||||||||||||||||||||||||||
Mr. Ben Noteboom |
7/7 | 5/5 | v | 1/1 | 6/6 | Chair | 10/10 | |||||||||||||||||||||||||||||||||||||||||
Ms. Caroline Ramsay |
7/7 | 5/5 | Chair | 5/5 | v | 1/1 | 10/10 | 7/7 | ||||||||||||||||||||||||||||||||||||||||
Mr. Thomas Wellauer |
7/7 | 5/5 | v | 1/1 | 6/6 | v | 6/7 | 1/1 | ||||||||||||||||||||||||||||||||||||||||
Ms. Corien Wortmann |
7/7 | 5/5 | v | 1/1 | 6/6 | v | 8/10 | 7/7 | ||||||||||||||||||||||||||||||||||||||||
Ms. Dona Young |
7/7 | 5/5 | Chair | 1/1 | 6/6 | v | 10/10 |
1 |
The Supervisory Board is a separate independent corporate body, consisting of 9 members on December 31, 2022. |
2 |
Where a Supervisory Board member retired from the SB, stepped down from a Committee, or was appointed throughout the year, only meetings during his / her tenure are taken into account. |
3 |
All SB members attended the regular SB (Committee) meetings. Throughout the year, ad-hoc meetings have been scheduled to discuss strategy-related topics. Furthermore, several sub-committees have been established to discuss - among others - strategy-related topics and the audit tender process. These ad-hoc (sub-committee) meetings were attended by most (applicable) SB members. For remuneration purposes, some of the additional (sub-committee) calls have been combined and were considered (and paid) as one meeting. |
Aegon Annual Report on Form 20-F 2022 51 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
Audit Committee |
◆ |
Risk Committee |
◆ |
Nomination and Governance Committee |
◆ |
Remuneration Committee |
◆ |
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. |
◆ |
The performance of the external auditors and the effectiveness of the external audit process, including monitoring the independence and objectivity of the external auditor. |
◆ |
Reviewed and discussed the management letter and follow-up actions with the Executive and the Management Boards, Internal Audit, and PwC. |
◆ |
Discussed PwC’s report leading to a review opinion on the interim financial statements. |
◆ |
Considered presentations on various topics by local business unit managers, chief financial officers, Internal Audit, and the compliance and legal functions. |
◆ |
Reviewed and discussed areas of significant judgments in the preparation of the financial statements, including, in particular, investment valuation and impairments, accounting changes, economic and actuarial assumption setting, and model validations. |
◆ |
Reviewed and approved the internal and external audit plans and monitored execution, including progress in respect of recommendations made. |
52 |
Aegon Annual Report on Form 20-F 2022 |
Report of the Supervisory Board | ||||
◆ |
Discussed quarterly updates on the activities of the internal audit function, together with details of progress on internal audits with the internal auditor. Areas of focus include, amongst others, the Internal Audit strategy, audit planning process, Internal Audit charter, Internal Audit functional governance, quality assurance reviews, issue tracking and resolution, control environment, and results of audits in the areas of information and cybersecurity, Solvency II, third-party management and administration partnerships, General Data Protection Regulation, performance management and integrity. |
◆ |
Reviewed the internal control framework, among others with respect to the Sarbanes-Oxley Act. |
◆ |
Discussed the internal control statement with the Executive Board. |
◆ |
The review and evaluation of the external auditor and the lead partner of the external audit team on at least an annual basis. |
◆ |
Non-audit services performed by the external auditor. |
◆ |
Rotations of the external auditor. |
◆ |
Risk strategy, risk tolerance, and risk governance |
◆ |
Product development and pricing |
◆ |
Risk assessment |
◆ |
Risk responses and internal control effectiveness |
◆ |
Risk limits and monitoring |
◆ |
Risk reporting |
◆ |
Operational risk, and |
◆ |
Non-financial risk. |
Aegon Annual Report on Form 20-F 2022 53 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
Discussing the quarterly risk dashboard, including all material group level risks, with the Executive Board, Chief Risk Officer, and relevant senior managers. The material group level risks consisted of financial, underwriting, and operational risks, including cybersecurity and information security risk. Specific attention was paid to the impact of the war in Ukraine, inflation risk, hedging, rapidly rising interest rates, liquidity and credit risk, people risk, and the delivery of the regulatory roadmap of Aegon the Netherlands. |
◆ |
Assessing a quarterly dashboard that outlined risks with regard to the execution of the strategic change programs in each region, and how those risks were monitored and mitigated. |
◆ |
Reviewing Aegon’s risk appetite, which consists of the risk strategy, risk tolerances and indicators. |
◆ |
Reviewing the risk governance structure and risk competencies, including the skills and resources necessary for the risk function. |
◆ |
Board member and senior management succession planning. |
◆ |
Drawing up selection criteria and procedures for the appointment of Board members, together with supervising the selection criteria and procedures for senior management. |
◆ |
Advising on and proposing nominations, appointments, and reappointments. |
◆ |
Assessing and advising on the approach to sustainability as part of the corporate strategy and overseeing the execution thereof. |
◆ |
Reviewing and updating the Supervisory Board profile and charters for the Supervisory Board and its committees. |
◆ |
Periodically assessing the functioning of individual members of the Supervisory Board and the Executive Board. |
◆ |
Overseeing the corporate governance structure of the company, compliance with the Dutch Corporate Governance Code and any other applicable corporate governance legislation and regulations. |
54 |
Aegon Annual Report on Form 20-F 2022 |
Report of the Supervisory Board | ||||
Aegon Annual Report on Form 20-F 2022 55 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
Reviewing Aegon’s Global Remuneration Framework and making recommendations on the remuneration policies. |
◆ |
Overseeing the remuneration of the Executive Board and Heads of Group Control functions. |
◆ |
Preparing recommendations regarding variable compensation both at the beginning and at the end of the performance year. |
◆ |
Preparing the information provided to shareholders on remuneration policies and practices, including the Remuneration Report. |
◆ |
Setting the outcome of the 2021 Group Performance Indicators and of the 2021 Individual Performance Indicators for Executive Board members, and allocating variable compensation related to 2021 where required. |
◆ |
Setting the 2022 Individual Performance Indicators for Executive Board members. |
◆ |
Setting the 2022 Group Performance Indicators and targets for remuneration purposes. |
◆ |
Preparing for the 2023 performance indicators. |
◆ |
Reviewing and/or approving the ex-ante risk assessments and ex-post risk assessments, any exemption requests (for example, sign-on arrangements) under the remuneration policies, and changes to the list of Material Risk Takers. |
◆ |
Reviewing the related Remuneration Report. |
56 |
Aegon Annual Report on Form 20-F 2022 |
Remuneration Report | ||||
Business performance highlights |
2022 |
2021 | ||||||
Free cash flows (in EUR million) |
780 | 729 | ||||||
Operating result (in EUR million) |
1,918 | 1,906 | ||||||
Addressable expense savings (in EUR million) |
366 | 244 | ||||||
Market consistent value of new business (in EUR million) |
526 | 538 |
Aegon Annual Report on Form 20-F 2022 57 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
The total EU-IFRS remuneration expenses for all employees, which are the total employee expenses minus the CEO remuneration expenses: EUR 2,094 million – EUR 3.1 million = EUR 2,091 million. |
◆ |
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 note 14 given the partial consolidation for these businesses) and minus the CEO: 19,087 – 3,507 – 1 = 15,579 employees. |
◆ |
Attract, retain, motivate, and reward a highly qualified, and diverse workforce. |
◆ |
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 Aegon. |
◆ |
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. |
◆ |
Firstly, Aegon’s remuneration is employee-oriented by fostering a sense of value and appreciation in each individual employee; promoting the short- and long-term interests and wellbeing of Aegon’s employees through fair compensation and supporting the career development and mobility of employees. |
◆ |
Secondly, 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 interests. |
1 |
This figure continued to include expenses for the employees of Aegon the Netherlands. Please note that for this reason, the employee expenses deviate from what is disclosed in note 14. In note 14, the employee expenses for employees of Aegon the Netherlands are out-of-scope, |
58 |
Aegon Annual Report on Form 20-F 2022 |
Remuneration Report | ||||
◆ |
Thirdly, 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 level. |
◆ |
And lastly, Aegon’s remuneration is risk-prudent (see also Risk Management in relation to Remuneration below). |
1 |
Aegon selects Group Material Risk Takers for the Aegon N.V. legal entity based on the Solvency II selection criteria. Additionally, legal entities within the company that are directly subject to the Capital Requirements Directive, Solvency Directive, the Alternative Investment Fund Managers Directive, and/or the Undertakings for the Collective Investment in Transferable Securities Directive, select Local Material Risk Takers in accordance with the applicable selection criteria and local regulatory requirements. |
Aegon Annual Report on Form 20-F 2022 59 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
The policy provides the Supervisory Board with the means to attract, motivate, and retain competent, diverse, and experienced Supervisory Board members for the long term. This is essential for executing Aegon’s strategy and safeguarding and promoting its long-term interests and sustainability. |
◆ |
Supervisory Board members receive fixed remuneration for their responsibilities that does not depend on Aegon’s results in order to protect their independence when supervising the manner in which the Executive Board members implement the long-term value creation strategy. These responsibilities are part of the membership of the Supervisory Board and its Committees and the position of (Vice) Chairman of the Supervisory Board and/or its Committees. The certainty of the fixed compensation also allows Supervisory Board members in their supervisory role to focus on the long-term interest and sustainability of Aegon. |
◆ |
The Supervisory Board members receive fixed remuneration for their activities, such as attending Committee meetings and additional Supervisory Board meetings, in order to regularly discuss the Aegon strategy, the implementation of the strategy and the principal risks associated with it, while taking into account the broader long-term interests and sustainability of Aegon. |
◆ |
Supervisory Board members are only allowed to privately own Aegon N.V. shares if this is a long-term investment, aligning their interests with Aegon’s long-term interests. |
60 |
Aegon Annual Report on Form 20-F 2022 |
Remuneration Report | ||||
◆ |
Aegon is an integrated, diversified, international financial services group based in the Netherlands. We offer investment, protection, and retirement solutions. The policy provides the Supervisory Board with the means to attract, motivate, and retain Supervisory Board members from various countries, predominantly based in the Netherlands and the US. As Aegon is based in the Netherlands, the policy considers the European Insurance peers as well as Dutch General Industry peers to be the relevant external reference for the Supervisory Board member’s Remuneration. The policy is also influenced by the European and Dutch rules and regulations on (Executive) remuneration, which apply to Aegon as a result of its identity (that is, being an insurance firm in Europe and being a listed and financial company in the Netherlands). |
◆ |
Aegon’s purpose and values in place at the time were taken into account by the Supervisory Board when the last changes to the policy were proposed in 2020. |
◆ |
The policy continues to align with our new company purpose ( helping people live their best lives |
◆ |
A base fee for membership of the Supervisory Board. No separate attendance fees are paid to members for attendance at the regular Supervisory Board 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 Supervisory Board’s 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 Supervisory Board member’s home location, and the meeting location. |
Base fee for Supervisory Board membership |
EUR /year |
|||
Chairman |
84,000 | |||
Vice-Chairman |
52,500 | |||
Member |
42,000 |
Fee for Supervisory Board committee membership |
EUR /year |
|||
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 |
Attendance fees |
EUR |
|||
Committee meeting |
3,150 | |||
Extra Supervisory Board meeting |
3,150 |
Travel fees |
EUR |
|||
Intercontinental |
4,200 | |||
Continental or US interstate |
2,100 |
Aegon Annual Report on Form 20-F 2022 61 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
Industry: Insurance, with a preference for life insurance. |
◆ |
Size: Average market capitalization, employees, revenue, and total assets. |
◆ |
Geographic scope: Preferably companies that operate globally. |
◆ |
Location: Headquarters based in Europe, excluding UK (because the non-executive directors typically have different responsibilities compared to their continental European counterparts). |
◆ |
Industry: General industry and listed on the AEX. |
◆ |
Size: Average market capitalization, employees, revenue, and total assets. |
◆ |
Location: Headquarters based in the Netherlands. |
62 |
Aegon Annual Report on Form 20-F 2022 |
Remuneration Report | ||||
In EUR thousand |
Year | Base fees | Attendance fees 1) |
Benefits 2) |
Total compensation |
|||||||||||||||
William L. Connelly |
2022 | 100 | 88 | 29 | 217 | |||||||||||||||
2021 | 95 | 57 | 10 | 162 | ||||||||||||||||
2020 | 95 | 45 | 4 | 144 | ||||||||||||||||
Mark A. Ellman |
2022 | 56 | 60 | 17 | 132 | |||||||||||||||
2021 | 53 | 45 | 4 | 102 | ||||||||||||||||
2020 | 55 | 39 | 4 | 98 | ||||||||||||||||
Ben J. Noteboom |
2022 | 61 | 66 | 11 | 138 | |||||||||||||||
2021 | 58 | 45 | 4 | 107 | ||||||||||||||||
2020 | 58 | 39 | - | 97 | ||||||||||||||||
Corien M. Wortmann - Kool |
2022 | 66 | 79 | 6 | 151 | |||||||||||||||
2021 | 63 | 45 | 4 | 112 | ||||||||||||||||
2020 | 63 | 48 | - | 111 | ||||||||||||||||
Dona D. Young |
2022 | 61 | 66 | 25 | 152 | |||||||||||||||
2021 | 62 | 51 | 6 | 119 | ||||||||||||||||
2020 | 66 | 57 | 4 | 127 | ||||||||||||||||
Caroline Ramsay |
2022 | 64 | 82 | 37 | 183 | |||||||||||||||
2021 | 61 | 39 | 21 | 121 | ||||||||||||||||
2020 | 38 | 21 | 9 | 68 | ||||||||||||||||
Thomas Wellauer |
2022 | 56 | 57 | 24 | 136 | |||||||||||||||
2021 | 53 | 45 | 13 | 111 | ||||||||||||||||
2020 | 33 | 21 | 5 | 59 | ||||||||||||||||
Jack McGarry |
2022 | 56 | 76 | 23 | 154 | |||||||||||||||
2021 | 31 | 24 | 6 | 61 | ||||||||||||||||
Karen Fawcett (as of May 31, 2022) |
2022 | 32 | 32 | 13 | 77 | |||||||||||||||
Ben van der Veer (up to May 15, 2020) |
2020 | 22 | 27 | - | 49 | |||||||||||||||
Total compensation |
2022 | 551 | 605 | 184 | 1,340 | |||||||||||||||
2021 | 476 | 351 | 69 | 896 | ||||||||||||||||
2020 | 430 | 297 | 26 | 752 | ||||||||||||||||
Recognized IFRS expenses 3) |
2022 | 551 | 605 | 184 | 1,340 | |||||||||||||||
2021 | 482 | 357 | 72 | 911 | ||||||||||||||||
2020 | 459 | 321 | 26 | 806 |
1 |
In 2022, there were four additional Supervisory Board calls and two Supervisory Board sub-committee calls, for which the participants received attendance fees. Mr. Connelly received attendance fees for joining the combined audit and risk committee meeting on December 7, 2022 (EUR 3,150) and on December 7, 2021 (EUR 3,000). Mr. Connelly, Mr. Ellman, and Mr. Noteboom received an attendance fee of EUR 3,000 for joining the audit committee call on March 16, 2021. Mr. Connelly received attendance fees for meetings outside the regular Supervisory Board meeting cycle (EUR 18,900 in 2022 and EUR 6,000 in 2021). In 2022, Ms. Ramsay, Ms. Wortmann - Kool, and Mr. McGarry received EUR 18,900 in attendance fees related to the audit tender process. For the same purpose, Mr. Wellauer received EUR 3,150 in attendance fees in 2022. |
2 |
Benefits cover the travel fees for all Supervisory Board members and the mandatory employer social security contributions in the home countries of Ms. Ramsay (UK) and Mr. Wellauer (Switzerland). Mr. Connelly received travel fees for attending meetings outside the regular Supervisory Board meeting cycle (EUR 8,400 in 2022 and EUR 2.000 in 2021). In 2022, Ms. Ramsay and Mr. McGarry received EUR 2,100 in travel fees related to the audit tender process. |
3 |
Based on a Decree of the Dutch State Secretary of Finance which came into force as from May 7, 2021, the Supervisory Board fees were not subject to Dutch VAT anymore, retroactively as from June 13, 2019. Therefore, Aegon has not paid Dutch VAT anymore on the fees of the Supervisory Board Members as from Q2 2021. Additionally, Aegon reclaimed VAT for the period Q3 2019 - Q1 2021, except for its Supervisory Board members based in the Netherlands for practical reasons. |
Aegon Annual Report on Form 20-F 2022 63 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
In EUR thousand |
Annualized 1) |
2018 | 2019 | 2020 | 2021 | 2022 |
||||||||||||||||
William L. Connelly |
Compensation | 119 | 169 | 144 | 162 | 217 | ||||||||||||||||
Change | - | 42% | (15% | ) | 13% | 34% | ||||||||||||||||
Mark A. Ellman |
Compensation | 103 | 115 | 98 | 102 | 132 | ||||||||||||||||
Change | - | 12% | (15% | ) | 5% | 30% | ||||||||||||||||
Ben J. Noteboom |
Compensation | 86 | 103 | 97 | 107 | 138 | ||||||||||||||||
Change | - | 20% | (6% | ) | 10% | 29% | ||||||||||||||||
Corien M. Wortmann - Kool |
Compensation | 103 | 123 | 111 | 112 | 151 | ||||||||||||||||
Change | - | 19% | (10% | ) | 1% | 35% | ||||||||||||||||
Dona D. Young |
Compensation | 121 | 158 | 127 | 119 | 152 | ||||||||||||||||
Change | - | 31% | (20% | ) | (6% | ) | 28% | |||||||||||||||
Caroline Ramsay (as of May 15, 2020) |
Compensation | - | - | 108 | 121 | 183 | ||||||||||||||||
Change | - | - | - | 12% | 51% | |||||||||||||||||
Thomas Wellauer (as of May 15, 2020) |
Compensation | - | - | 94 | 111 | 136 | ||||||||||||||||
Change | - | - | - | 18% | 22% | |||||||||||||||||
Jack McGarry (as of June 3, 2021) |
Compensation | - | - | - | 105 | 154 | ||||||||||||||||
Change | - | - | - | - | 46% | |||||||||||||||||
Karen Fawcett (as of May 31, 2022) |
Compensation | - | - | - | - | 131 | ||||||||||||||||
Change | - | - | - | - | - | |||||||||||||||||
Ben van der Veer (up to May 15, 2020) |
Compensation | 101 | 118 | 131 | - | - | ||||||||||||||||
Change | - | 17% | 11% | - | - | |||||||||||||||||
Robert W. Dineen (up to Oct 11, 2019) |
Compensation | 101 | 101 | - | - | - | ||||||||||||||||
Change | - | 1% | - | - | - | |||||||||||||||||
Aegon net result based on EU-IFRS |
In EUR million | 741 | 1,525 | 55 | 1,701 | (2,504 | ) | |||||||||||||||
Aegon business performance 2) |
Target = 100% | 106% | 79% | 57% | 123% | 113% | ||||||||||||||||
Inflation in the Netherlands |
Consumer Price Index | 1.7% | 2.6% | 1.3% | 2.7% | 10.0% | ||||||||||||||||
Average employee compensation 3) |
In EUR thousand | 104 | 115 | 110 | 105 | 134 | ||||||||||||||||
Annual change | - | 11% | (4% | ) | (5% | ) | 28% |
1 |
Remuneration amounts are annualized for Supervisory Board members who joined or left during a calendar year. |
2 |
The weighted average Aegon financial and non-financial business performance, expressed as a percentage on a performance scale with 50% as the threshold, 100% as the target and 150% as the maximum, as used for the allocation of variable compensation in the applicable year. |
3 |
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. |
64 |
Aegon Annual Report on Form 20-F 2022 |
Remuneration Report | ||||
◆ |
The policy provides the Supervisory Board with the means to attract, motivate, and retain competent and experienced Executive Board members for the long term. This is essential for executing Aegon’s strategy and safeguarding and promoting its long-term interests and sustainability. |
◆ |
The leading performance indicator categories for the successful execution of Aegon’s strategy are capital, growth, and strategy. To support the execution of Aegon’s strategy, the policy makes these performance indicator categories mandatory for the Executive Board member. |
◆ |
Aegon strives to create long-term value for its stakeholders and the communities in which it operates. Due to the nature of Aegon’s business, value created is often financial, but it may also be social, economic, or environmental. The policy directly aligns Executive Board members’ personal long-term interests with those of Aegon and its shareholders by paying a significant part of the Executive Board members’ variable compensation (two-thirds) in shares, which must be held for five years after completion of the performance period. The pay-out in these restricted shares is combined with prohibiting Executive Board members using personal hedging strategies or insurance, which could undermine this long-term alignment of interests. Additionally, Executive Board members are aligned with the long-term interests of Aegon, its shareholders, and other stakeholders through the use of mandatory performance indicator categories of earnings, shareholders, and other stakeholders. |
◆ |
Aegon is committed to doing business responsibly and in a sustainable way. Variable compensation of Executive Board members can be adjusted downwards (that is, malus) or clawed-back in cases where certain performance has not been achieved in a sustainable way. This includes but is not limited to significant risk and compliance incidents, insufficient response to such incidents and/or insufficient evidence of embedding of good standards of practice, such as sound and responsible business practices, and integrity of products and services delivered. Additionally, the policy makes the performance indicator category environmental, social and governance (ESG), mandatory for Executive Board members to support this approach to doing business. |
◆ |
Aegon is an integrated, diversified, international financial services group based in the Netherlands. We offer investment, protection, and retirement solutions. The policy provides the Supervisory Board with the means to attract, motivate, and retain Executive Board members who are competent and experienced to run Aegon in this specific context. As the Executive Board members are based in the Netherlands, the Policy considers the European insurance peers as well as Dutch general industry peers to be the relevant external reference for Executive Remuneration. The Policy is also strongly influenced by the European and Dutch rules and regulations on (Executive) remuneration which apply to Aegon. |
◆ |
Aegon’s purpose and values in place at the time were taken into account by the Supervisory Board when the last changes to the policy were proposed in 2020. |
◆ |
The policy continued to align with our new company purpose ( helping people live their best lives |
◆ |
The total variable compensation amount that is allocated to an Executive Board member for a performance year cannot exceed 100% of the fixed compensation level. |
◆ |
Variable compensation should be based on a mix of Aegon and personal performance, with at least 50% weight on non-financial performance. |
◆ |
A substantial portion of any variable compensation award should be paid in a non-cash instrument (for example, Aegon shares) and should be deferred for at least three years. Additionally, awarded shares should be restricted for five years. With a three-year vesting period, this requires an additional holding period of two years. |
◆ |
Aegon can claw-back any variable compensation which has been paid (cash and shares) in specific circumstances such as a material financial restatement or individual gross misconduct. |
Aegon Annual Report on Form 20-F 2022 65 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
The internal references are the compensation structure and levels of the members of the Management Board of Aegon N.V. and the annual compensation changes of the general employee population and senior managers within Europe and the Netherlands specifically. |
◆ |
The external references are compensation trends in the market, economic developments (for example, inflation) as well as quantitative assessments of the competitiveness against a peer group of insurance companies in Europe and a peer group of companies based in the Netherlands. |
◆ |
Additionally, the Remuneration Committee conducts a scenario analysis in case of a policy change to determine the long-term effect on the remuneration structure and level of each Executive Board member, and reports their findings to the Supervisory Board. |
◆ |
Industry: Insurance, with a preference for life insurance |
◆ |
Size: Average market capitalization, employees, revenue, and total assets |
◆ |
Geographic scope: Preferably companies that operate globally |
◆ |
Location: Headquarters based in Europe |
◆ |
Industry: general industry and listed on the AEX.Size: Average market capitalization, employees, revenue and total assets |
◆ |
Location: Headquarters based in the Netherlands |
66 |
Aegon Annual Report on Form 20-F 2022 |
Remuneration Report | ||||
◆ |
It contains a mix of financial and non-financial performance indicators, with at least 50% weight allocated to the non-financial performance indicators in accordance with article 1:118.3 of the Dutch Financial Supervision Act. |
◆ |
The maximum weight for unadjusted financial indicators is determined by the Global Remuneration Framework and is currently set at 50%. |
◆ |
It contains a mix of Aegon and personal performance indicators, which can range in weight between 50-80% and 20-50% respectively, depending on the Aegon priorities of the performance year. |
◆ |
At least 20% of the indicators have a retrospective three-year performance horizon, while the remainder has a one-year performance horizon. |
◆ |
The indicators should cover the following mandatory performance indicator categories: shareholders, capital, earnings, growth, stakeholders, ESG, and strategy. |
◆ |
The performance indicators and weights are in line with the policy. |
◆ |
The financial performance indicators are consistent with the risk tolerance statements. |
◆ |
The non-financial performance indicators are consistent with risk tolerance statements, regulatory requirements, and reasonable stakeholder expectations, and are supporting sound and responsible business practices and integrity of the products and services delivered. |
◆ |
Significant risk or compliance incident(s) |
◆ |
Insufficient response to risk incident(s), compliance incident(s), regulatory fine(s) and/or insufficient execution of risk mitigating measures in response to these incidents |
◆ |
Breaches of laws and regulations |
◆ |
Insufficient evidence of embedding good standards of practice |
◆ |
Significant deficiencies or material weaknesses relating to the Sarbanes-Oxley Act |
◆ |
Reputation damage due to risk events |
Aegon Annual Report on Form 20-F 2022 67 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
Participation in Aegon’s defined contribution pension plan for employees based in the Netherlands, for their eligible earnings up to EUR 114,866 (2022 threshold set by Dutch law). |
◆ |
Participation in Aegon’s defined contribution pension plan for employees based in the Netherlands, for their fixed income above EUR 114,866. |
◆ |
An additional gross allowance for pension to make the sum of these three pension contributions equal to 40% of their fixed compensation level. |
68 |
Aegon Annual Report on Form 20-F 2022 |
Remuneration Report | ||||
Allocated compensation (in EUR thousand) |
Fixed compensation |
Variable compensation |
Pension |
Other Benefits |
Total compensation | |||||||||||
Lard Friese |
||||||||||||||||
2022 1) |
1,559 | 1,368 | 621 | 77 | 3,625 | |||||||||||
2021 |
1,485 | 1,359 | 594 | 77 | 3,515 | |||||||||||
2020 2) |
931 | 634 | 373 | 49 | 1,987 | |||||||||||
Matt Rider |
||||||||||||||||
2022 |
988 | 837 | 395 | 66 | 2,286 | |||||||||||
2021 3) |
968 | 884 | 387 | 67 | 2,306 | |||||||||||
2020 |
941 | 640 | 376 | 67 | 2,024 | |||||||||||
Alex Wynaendts |
||||||||||||||||
2020 4) |
496 | 302 | 337 | 97 | 1,233 | |||||||||||
All Executive Board members |
||||||||||||||||
2022 |
2,547 | 2,205 | 1,016 | 143 | 5,912 | |||||||||||
2021 |
2,453 | 2,243 | 981 | 144 | 5,821 | |||||||||||
2020 |
2,368 | 1,577 | 1,086 | 213 | 5,244 |
1 |
Mr. Friese’s fixed compensation increased by 5% as of January 2022. |
2 |
The disclosed amounts for 2020 cover the period that Mr. Friese has been a member of the Executive Board (as of May 15, 2020), and excludes the sign-on arrangement of EUR 1,228 thousand that Mr. Friese received when joining Aegon in March 2020. |
3 |
Mr. Rider’s fixed compensation increased by 5% as of June 2021. |
4 |
The disclosed amounts for 2020 cover the period that Mr. Wynaendts has been a member of the Executive Board (until May 15, 2020). |
2022 variable compensation |
Minimum |
Target |
Maximum |
Result |
Pay-out | |||||||||||||
Lard Friese |
||||||||||||||||||
In % of fixed compensation |
50% | 80% | 100% | 88% | ||||||||||||||
In total (EUR thousand) |
780 | 1,247 | 1,559 | 1,368 | Split in 33.33% cash and 66.67% shares | |||||||||||||
In cash (EUR thousand) |
260 | 416 | 520 | 456 | Paid upfront in 2023 | |||||||||||||
In shares 1) |
115,750 | 185,200 | 231,500 | 203,072 | Deferred for 3 years (2026) | |||||||||||||
Matt Rider |
||||||||||||||||||
In % of fixed compensation |
50% | 80% | 100% | 85% | ||||||||||||||
In total (EUR thousand) |
494 | 790 | 988 | 837 | Split in 33.33% cash and 66.67% shares | |||||||||||||
In cash (EUR thousand) |
165 | 263 | 329 | 279 | Paid upfront in 2023 | |||||||||||||
In shares 1) |
73,343 | 117,349 | 146,686 | 124,273 | Deferred for 3 years (2026) |
1 |
The 2022 grant price of the shares was EUR 4.4905, which is equal to the volume-weighted average price on the Euronext Amsterdam stock exchange for the period December 15, 2021 to January 15, 2022. After vesting in 2026, these shares are subject to an additional 2-year holding period. |
Aegon Annual Report on Form 20-F 2022 69 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
For Aegon bonus pools |
||||||||||||||||
2022 Group performance indicators |
Weight |
Target |
Outcome |
Result 1) |
||||||||||||
Free cash flows (2021-2022) |
20% | 1,000 | 1,509 | 150% | ||||||||||||
Relative total shareholder return (2020-2022) |
10% | Rank 5 | Rank 7 | 67% | ||||||||||||
Operating result |
10% | 2,101 | 1,918 | 56% | ||||||||||||
Addressable expense savings (2021-2022) |
10% | 322 | 366 | 150% | ||||||||||||
Market consistent value of new business |
10% | 556 | 526 | 93% | ||||||||||||
Transformation program: Earnings contribution |
10% | 100% | 102% | 109% | ||||||||||||
Transformation program: Timely initiative execution |
10% | 100% | 103% | 108% | ||||||||||||
Transformation program: Timely milestone completion |
10% | 100% | 152% | 150% | ||||||||||||
Employee engagement |
10% | 70% | 70% | 100% | ||||||||||||
Total performance result |
113% |
1 |
The Group performance results are measured on a 50-100-150% |
Lard Friese |
Matt Rider |
|||||||||||||||
2022 Executive Board performance indicators |
Weight |
Result |
Weight |
Result |
||||||||||||
Group performance 1) |
70% | 85% | 70% | 85% | ||||||||||||
Strategic Roadmap development |
10% | 100% | 5% | 100% | ||||||||||||
Execution of capital initiatives in line with Strategic Roadmap |
10% | 100% | 5% | 100% | ||||||||||||
Sustainability integration and execution |
5% | 80% | 5% | 80% | ||||||||||||
Women in senior management |
5% | 80% | 5% | 80% | ||||||||||||
Finance strategy execution |
- - - | - - - | 10% | 70% | ||||||||||||
Total performance result |
88% |
85% |
1 |
The abovementioned Group performance result of 113% equals 85% on the 50-80-100% |
70 |
Aegon Annual Report on Form 20-F 2022 |
Remuneration Report | ||||
2022 Aegon performance indicators |
Definition | |
Free cash flows | Free cash flows represent cash flows from remittances from the units less the Holding funding and operating expenses. The 2021-2022 target was based on the 2021-2023 cumulative free cash flows target that was disclosed at the Capital Markets Day in December 2020 and the updated guidance in February 2021. | |
Relative total shareholder return | Aegon’s position relative to 7 US and 7 non-US peers when looking at Total Shareholder Return for a retrospective 3-year performance period (2020-2022). These peers were selected for being the most similar to Aegon based on their index listing, industry classification, 5 year monthly Beta, Market Capitalization and Total Revenue. 1) | |
Operating result | Operating result reflects our profit before tax from underlying business operations and excludes components that relate to accounting mismatches that are dependent on market volatility, updates to best estimate actuarial and economic assumptions and model updates or events that are considered outside the normal course of business. The 2022 target was based on the 2022 budget. | |
Addressable expense savings | Addressable expenses are expenses reflected in the operating result, excluding deferrable acquisition expenses, expenses in joint ventures and associates and expenses related to operations in CEE countries. The 2021-2022 target was based on the 2021-2023 savings target that was disclosed at the Capital Markets Day in December 2020. | |
Market consistent value of new business | Represents how much value the sale of new insurance policies is generating for the company. This value represents the present value of our best estimate of incoming premiums and outgoing claims, benefits and expenses related to these new sales. The 2022 target was based on the 2022 budget. | |
Transformation program: Earnings contributions | Measures the expected cumulative run-rate earnings contribution for performance improvement initiatives that moved to the execution phase during the retrospective 3-year performance period 2020-2022, compared to the cumulative 2020-2022 target in the transformation program. | |
Transformation program: Timely initiative execution | Measures whether performance improvement initiatives moved to the execution phase in time, compared to the 2022 targets in the transformation program. | |
Transformation program: Timely milestone completion | Measures the timely milestone completion of the performance improvement initiatives, compared to the 2022 targets in the transformation program. | |
Employee engagement | Employee engagement as measured in the global employee survey. The 2022 target was 70%. | |
Strategic Roadmap development | Assesses how the Strategic Roadmap further evolved for strategic assets and non-core assets in 2022. | |
Execution of capital initiatives in line with Strategic Roadmap | Assesses the completion of management actions in relation to financial assets and non-core assets in 2022. | |
Sustainability integration and execution | Measures the degree of complete milestones in 2022 related to further integrating our ESG priorities in Aegon’s strategy, sustainability reporting, and reaching our 2025 carbon emission reduction target. | |
Women in senior management | Measures the percentage of women in Aegon’s senior management layer worldwide. The 2022 target was 36%. | |
Finance strategy execution | Assesses the completion of the 2022 milestones from the Finance strategy. |
1 |
These peers are in order of the 2020-2022 ranking results: 1) Principal Financial Group Inc, 2) Unum Group, 3) MetLife Inc, 4) ASR Nederland NV, 5) NN Group NV, 6) Brighthouse Financial Inc, 7) Aegon NV, 8) Equitable Holdings Inc, 9) Prudential Financial Inc, 10) Swiss Life Holding AG, 11) Athene Holding Ltd / Helvetia Holding*, 12) Assicurazioni Generali SpA, 13) Baloise Holding AG, 14) Prudential PLC, and 15) Lincoln National Corp. This is the blended result of the initial peer Athene and the back-up peer Helvetia, which replaced Athene per March 9, 2021, in accordance with our plan rules, following the merger announcement by Athene. |
Aegon Annual Report on Form 20-F 2022 71 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Lard Friese |
Target |
Result on 50-80-100% | ||
10% Strategic Roadmap Development |
Further evolve the Strategic Roadmap for strategic assets and non-core assets in 2022. |
100%. Announced an agreement to combine Aegon the Netherlands with a.s.r. to create a leading Dutch insurance company, in which Aegon will hold a strategic stake. Identified several areas of our business where we will invest to achieve profitable growth, and create value for our customers, shareholders, and other stakeholders in the years ahead. These include Transamerica’s Workplace Solutions where we will focus on small and mid-sized employers, and Individual Solutions where we will invest in selected individual life insurance, accumulation, and investment products, leveraging our strong distribution capabilities. | ||
10% Execution of capital initiatives in line with Strategic Roadmap |
Complete management actions in relation to financial assets and non-core assets in 2022. |
100%. Freed up capital by reinsuring the universal life portfolio of Transamerica Life Bermuda to Transamerica. Reduced our risk exposure by completing a lump-sum buyout program for certain Variable Annuity policies in Transamerica, and took steps to reduce the sensitivity of our solvency ratios to equity market movements. Successfully completed the divestment of Aegon Hungary and Turkey to Vienna Insurance Group AG Wiener Versicherung Gruppe. Integrated the operational improvement program into our annual operating cycle. | ||
5% Sustainability integration and execution |
Complete milestones in 2022 related to ESG priorities, sustainability reporting and carbon emission reduction. |
80%. Adopted the Sustainability Roadmap 2025 to drive lasting value creation for our company and its stakeholders. Further enhanced the Sustainability Reporting Program by making the company’s finance function responsible for delivering sustainability reporting with appropriate controls. Added new targets to Aegon’s climate change commitments. | ||
5% Women in Senior Management |
Increase the number of women in Aegon’s senior management layer worldwide to at least 36%. |
80%. At the end of 2022, 36% of the people in Aegon’s senior management layer were women. |
Matt Rider |
Target |
Result on 50-80-100% | ||
5% Strategic Roadmap Development |
Further evolve the Strategic Roadmap for strategic assets and non-core assets in 2022. |
100%. Announced an agreement to combine Aegon the Netherlands with a.s.r. to create a leading Dutch insurance company, in which Aegon will hold a strategic stake. Identified several areas of our business where we will invest to achieve profitable growth, and create value for our customers, shareholders, and other stakeholders in the years ahead. These include Transamerica’s Workplace Solutions where we will focus on small and mid-sized employers, and Individual Solutions where we will invest in selected individual life insurance, accumulation, and investment products, leveraging our strong distribution capabilities. | ||
5% Execution of capital initiatives in line with Strategic Roadmap |
Complete management actions in relation to financial assets and non-core assets in 2022. |
100%. Freed up capital by reinsuring the universal life portfolio of Transamerica Life Bermuda to Transamerica. Reduced our risk exposure by completing a lump-sum buyout program for certain Variable Annuity policies in Transamerica, and took steps to reduce the sensitivity of our solvency ratios to equity market movements. Successfully completed the divestment of Aegon Hungary and Turkey to Vienna Insurance Group AG Wiener Versicherung Gruppe. Integrated the operational improvement program into our annual operating cycle. | ||
5% Sustainability integration and execution |
Complete milestones in 2022 related to ESG priorities, sustainability reporting and carbon emission reduction. |
80%. Adopted the Sustainability Roadmap 2025 to drive lasting value creation for our company and its stakeholders. Further enhanced the Sustainability Reporting Program by making the company’s finance function responsible for delivering sustainability reporting with appropriate controls. Added new targets to Aegon’s climate change commitments. | ||
5% Women in Senior Management |
Increase the number of women in Aegon’s senior management layer worldwide to at least 36%. |
80%. At the end of 2022, 36% of the people in Aegon’s senior management layer were women. | ||
10% Finance Strategy Execution |
Complete the 2022 milestones from the Finance Strategy. |
70%. Not all targeted milestones were completed, mainly due to the work that was required to prepare for combining Aegon the Netherlands with a.s.r. Successfully completed the audit tender process. Developed a multi-year roadmap for the Sustainability Reporting Program and completed its 2022 milestones, which included strengthening its processes and controls. |
72 |
Aegon Annual Report on Form 20-F 2022 |
Remuneration Report | ||||
Years of vesting | ||||||||||||||||||||||||||||||||||||
Shares by plan year |
VWAP 1) |
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total | |||||||||||||||||||||||||||
Lard Friese 2020 |
EUR 4.083 | - | - | - | - | 103,580 | - | - | 103,580 | |||||||||||||||||||||||||||
2021 |
EUR 3.293 | - | - | - | - | - | 275,182 | - | 275,182 | |||||||||||||||||||||||||||
2022 |
EUR 4.491 | - | - | - | - | - | - | 203,072 | 203,072 | |||||||||||||||||||||||||||
Total number of shares |
- |
- |
- |
- |
103,580 |
275,182 |
203,072 |
|||||||||||||||||||||||||||||
Matt Rider 2017 |
EUR 5.246 | 9,508 | 9,508 | - | - | - | - | - | 19,016 | |||||||||||||||||||||||||||
2018 |
EUR 5.405 | 14,054 | 14,054 | 14,054 | - | - | - | - | 42,162 | |||||||||||||||||||||||||||
2019 |
EUR 4.162 | 35,693 | 17,847 | 17,847 | 17,847 | - | - | - | 89,234 | |||||||||||||||||||||||||||
2020 |
EUR 4.083 | - | - | - | - | 104,547 | - | - | 104,547 | |||||||||||||||||||||||||||
2021 |
EUR 3.293 | - | - | - | - | - | 178,961 | - | 178,961 | |||||||||||||||||||||||||||
2022 |
EUR 4.491 | - | - | - | - | - | - | 124,273 | 124,273 | |||||||||||||||||||||||||||
Total number of shares |
59,255 |
41,409 |
31,901 |
17,847 |
104,547 |
178,961 |
124,273 |
|||||||||||||||||||||||||||||
Alex Wynaendts 2015 |
EUR 6.106 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
2016 |
EUR 5.128 | 20,361 | - | - | - | - | - | - | 20,361 | |||||||||||||||||||||||||||
2017 |
EUR 5.246 | 21,866 | 21,866 | - | - | - | - | - | 43,732 | |||||||||||||||||||||||||||
2018 |
EUR 5.405 | 19,656 | 19,656 | 19,656 | - | - | - | - | 58,968 | |||||||||||||||||||||||||||
2019 |
EUR 4.162 | 50,345 | 25,174 | 25,174 | 25,174 | - | - | - | 125,867 | |||||||||||||||||||||||||||
2020 |
EUR 4.083 | - | - | - | - | 49,346 | - | - | 49,346 | |||||||||||||||||||||||||||
Total number of shares |
112,228 |
66,696 |
44,830 |
25,174 |
49,346 |
- |
- |
|||||||||||||||||||||||||||||
Darryl Button 2016 |
EUR 5.128 | 14,808 | - | - | - | - | - | - | 14,808 | |||||||||||||||||||||||||||
Total number of shares |
14,808 |
- |
- |
- |
- |
- |
- |
1 |
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 2022 plan year, this is the VWAP for the period December 15, 2021 to January 15, 2022. |
Cash by plan year (in EUR) |
2020 | 2021 | 2022 | 2023 | Total | |||||||||||||||
Lard Friese 2020 |
- | 211,431 | - | - | 211,431 | |||||||||||||||
2021 |
- | - | 452,981 | - | 452,981 | |||||||||||||||
2022 |
- | - | - | 455,880 | 455,880 | |||||||||||||||
Total cash |
- |
211,431 |
452,981 |
455,880 |
||||||||||||||||
Matt Rider 2017 |
49,878 | 49,878 | - | - | 99,756 | |||||||||||||||
2018 |
75,964 | 75,964 | 75,964 | - | 227,892 | |||||||||||||||
2019 |
148,560 | 74,278 | 74,278 | 74,278 | 371,394 | |||||||||||||||
2020 |
- | 213,404 | - | - | 213,404 | |||||||||||||||
2021 |
- | - | 294,589 | - | 294,589 | |||||||||||||||
2022 |
- | - | - | 278,984 | 278,984 | |||||||||||||||
Total cash |
274,402 |
413,524 |
444,831 |
353,262 |
||||||||||||||||
Alex Wynaendts 2016 |
104,412 | - | - | - | 104,412 | |||||||||||||||
2017 |
114,710 | 114,710 | - | - | 229,420 | |||||||||||||||
2018 |
106,243 | 106,243 | 106,243 | - | 318,729 | |||||||||||||||
2019 |
209,548 | 104,772 | 104,772 | 104,772 | 523,864 | |||||||||||||||
2020 |
- | 100,725 | - | - | 100,725 | |||||||||||||||
Total cash |
534,913 |
426,450 |
211,015 |
104,772 |
||||||||||||||||
Darryl Button 2016 |
74,674 | - | - | - | 74,674 | |||||||||||||||
Total cash |
74,674 |
- |
- |
- |
Aegon Annual Report on Form 20-F 2022 | 73 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
IFRS expenses for compensation (In EUR thousand) |
Fixed compensation |
Variable compensation |
Pension | Other Benefits |
Total | |||||||||||||||
Lard Friese |
||||||||||||||||||||
2022 1) |
1,586 | 864 | 621 | 77 | 3,149 | |||||||||||||||
2021 1) |
1,576 | 692 | 594 | 77 | 2,939 | |||||||||||||||
2020 1) |
1,869 | 282 | 373 | 49 | 2,572 | |||||||||||||||
Matt Rider |
||||||||||||||||||||
2022 |
988 | 594 | 395 | 66 | 2,044 | |||||||||||||||
2021 |
968 | 583 | 387 | 67 | 2,005 | |||||||||||||||
2020 |
941 | 528 | 376 | 67 | 1,912 | |||||||||||||||
Alex Wynaendts |
||||||||||||||||||||
2020 2) |
496 | 497 | 337 | 97 | 1,427 | |||||||||||||||
All Executive Board members |
||||||||||||||||||||
2022 1) |
2,574 | 1,459 | 1,016 | 143 | 5,193 | |||||||||||||||
2021 |
2,545 | 1,275 | 981 | 144 | 4,944 | |||||||||||||||
2020 |
3,306 | 1,307 | 1,086 | 213 | 5,911 |
1 |
Includes the fixed compensation expenses for the sign-on arrangement of EUR 1,228 thousand that Mr. Friese received when joining Aegon in March 2020. These expenses were EUR 27 thousand in 2022, EUR 91 thousand in 2021, and EUR 938 thousand in 2020. |
2 |
The disclosed amounts for 2020 cover the period that Mr. Wynaendts has been a member of the Executive Board (until May 15, 2020). |
Fixed | Variable | |||||||||||||||||||||||||||||||||
In EUR thousand |
Salary | Benefits | Upfront 1 ) |
Deferred 2 ) |
One-off |
Pension | Total | Ratio Fixed/Variable 3 ) |
||||||||||||||||||||||||||
Lard Friese |
2022 4) |
1,559 | 77 | 453 | — | 199 | 621 | 2,910 | 78 | % / 22% | ||||||||||||||||||||||||
2021 5) |
1,485 | 77 | 211 | — | 255 | 594 | 2,622 | 82 | % / 18% | |||||||||||||||||||||||||
Matt Rider |
2022 |
988 | 66 | 295 | 309 | — | 395 | 2,053 | 71 | % / 29% | ||||||||||||||||||||||||
2021 |
968 | 67 | 213 | 363 | — | 387 | 1,999 | 71 | % / 29% |
1 |
The upfront cash and share payments of variable compensation that was allocated for the previous performance year. The shares are valued at their price at vesting. For example, the upfront cash and shares of the 2021 variable compensation award that were paid in 2022. |
2 |
The deferred cash and share payments of the variable compensation that was allocated for performance years before the previous performance year. The shares are valued at their price at vesting. For example, the deferred cash and shares of the 2018-2019 variable compensation awards that were paid in 2022. |
3 |
Fixed (the numerator) is the sum of Salary, Benefits and Pension divided by the Total. Variable (the denominator) is the sum of Upfront, Deferred and One-off divided by the Total. |
4 |
The one-off item concerns the payments of the 2020 sign-on arrangement that were deferred for two years (EUR 57 thousand in cash and 28,692 shares at a vesting price of EUR 4.973). |
5 |
The upfront variable amount covers the pro-rated cash bonus payment that was awarded for the period as Executive Board member during 2020 (from May 15 to December 31). The one-off item concerns the payments of the 2020 sign-on arrangement that were deferrred for one year (EUR 105 thousand in cash and 37,980 shares at a vesting price of EUR 3.934). |
74 |
Aegon Annual Report on Form 20-F 2022 |
Remuneration Report | ||||
In EUR thousand |
Annualized |
2018 | 2019 | 2020 | 2021 | 2022 |
||||||||||||||||
Lard Friese |
Awarded and due | - | - | 2,719 | 2,748 | 2,910 | ||||||||||||||||
Change | - | - | - | 1% | 6% | |||||||||||||||||
Matt Rider (as of May 19, 2017) |
Awarded and due | 1,670 | 1,799 | 1,824 | 2,052 | 2,053 | ||||||||||||||||
Change | - | 8% | 1% | 12% | 0% | |||||||||||||||||
Alex Wynaendts |
Awarded and due | 4,969 | 3,806 | 3,268 | - | - | ||||||||||||||||
Change | - | (23% | ) | (14% | ) | - | - | |||||||||||||||
Aegon net result (EU-IFRS) |
In EUR million | 741 | 1,525 | 55 | 1,701 | (2,504 | ) | |||||||||||||||
Aegon business performance 1) |
Target = 100% | 106% | 79% | 57% | 123% | 113% | ||||||||||||||||
Vesting price Aegon shares |
In EUR | 5.848 | 4.287 | 2.079 | 3.934 | 4.973 | ||||||||||||||||
Inflation in the Netherlands |
Consumer Price Index | 1.7% | 2.6% | 1.3% | 2.7% | 10.0% | ||||||||||||||||
Average employee compensation 2) |
In EUR thousand | 104 | 115 | 110 | 105 | 134 | ||||||||||||||||
Annual change | - | 11% | (4% | ) | (5% | ) | 28% |
1 |
The weighted average Aegon financial and non-financial business performance, expressed as a percentage on a performance scale with 50% as the threshold, 100% as the target and 150% as the maximum, as used for the allocation of variable compensation in the applicable year. |
2 |
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. |
2023 performance indicator weights |
For Aegon bonus pools |
Lard Friese |
Matt Rider |
|||||||||
Group performance |
||||||||||||
Free cash flows (2021-2023) |
20% | 14% | 14% | |||||||||
Relative total shareholder return (2021-2023) |
10% | 7% | 7% | |||||||||
Earnings on in-force |
10% | 7% | 7% | |||||||||
Market consistent value of new business |
10% | 7% | 7% | |||||||||
Addressable expenses savings from cost initiatives |
10% | 7% | 7% | |||||||||
Revenue growth from growth initiatives |
10% | 7% | 7% | |||||||||
Timely execution of initiatives |
10% | 7% | 7% | |||||||||
Weighted average carbon intensity |
10% | 7% | 7% | |||||||||
Employee engagement |
10% | 7% | 7% | |||||||||
Personal performance |
||||||||||||
Strategic Roadmap development and execution |
25% | 10% | ||||||||||
Women in senior management |
5% | 5% | ||||||||||
Finance strategy execution |
- | 15% | ||||||||||
Total weight |
100 |
% |
100 |
% |
100 |
% |
Aegon Annual Report on Form 20-F 2022 75 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
2023 performance indicators |
Definition | |
Free cash flows | Free cash flows represent cash flows from remittances from the units less the Holding funding and operating expenses. For 2023 it will be measured on a retrospective 3-year performance period (2021-2023). The 2021-2023 target is equal to the 2021-2023 cumulative free cash flows target that was disclosed at the Capital Markets Day in December 2020 and the updated guidance, excluding Aegon the Netherlands. | |
Relative total shareholder return | Aegon’s position relative to 7 US and 7 non-US peers when looking at Total Shareholder Return for a retrospective 3-year performance period (2021-2023). These peers were selected for being the most similar to Aegon based on their index listing, industry classification, 5 year monthly Beta, Market Capitalization and Total Revenue. 1) | |
Earnings on In-Force |
Represents the capital that is generated by the business units from their In-Force business in 2023. It is based on the definition of Operating Capital Generation, but excludes the New Business Strain, Release of Required Capital in the business units, and Holding & Funding expenses at Group level. The 2023 target is based on the 2023 budget, excluding Aegon the Netherlands. | |
Market consistent value of new business | Represents how much value the sale of new insurance policies is generating for the company. This value represents the present value of our best estimate of incoming premiums and outgoing claims, benefits and expenses related to these new sales. The 2023 target is based on the 2023 budget, excluding Aegon the Netherlands. | |
Addressable expenses savings from cost initiatives | Measures the addressable expense savings delivered by cost initiatives in 2023. The 2023 target is based on the 2023 budget, excluding Aegon the Netherlands. | |
Revenue growth from growth initiatives | Measures the revenue growth delivered by growth initiatives in 2023. The 2023 target is based on the 2023 budget, excluding Aegon the Netherlands. | |
Timely execution of initiatives | Measures the timely operational completion of cost and growth initiatives. | |
Weighted average carbon intensity | Measures the weighted average carbon intensity reduction by the end of 2023, compared to our 2019 baseline, excluding Aegon the Netherlands. | |
Employee engagement | Employee engagement as measured in the global employee survey, excluding at Aegon the Netherlands. | |
Strategic Roadmap development and execution | Strategic Roadmap development and execution, such as to further enhance the growth prospects for the strategic assets and successfully combine Aegon the Netherlands with a.s.r. | |
Women in senior management | Measures the percentage of women in Aegon’s senior management layer worldwide, excluding at Aegon the Netherlands. | |
Finance strategy execution | Complete the 2023 milestones from the Finance strategy. |
1 |
These peers are in order of the 2020-2022 ranking results: 1) Principal Financial Group Inc, 2) Unum Group, 3) MetLife Inc, 4) ASR Nederland NV, 5) NN Group NV, 6) Brighthouse Financial Inc, 7) Aegon NV, 8) Equitable Holdings Inc, 9) Prudential Financial Inc, 10) Swiss Life Holding AG, 11) Athene Holding Ltd / Helvetia Holding*, 12) Assicurazioni Generali SpA, 13) Baloise Holding AG, 14) Prudential PLC, and 15) Lincoln National Corp. This is the blended result of the initial peer Athene and the back-up peer Helvetia, which replaced Athene per March 9, 2021, in accordance with our plan rules, following the merger announcement by Athene. |
76 |
Aegon Annual Report on Form 20-F 2022 |
Risk management | ||||
◆ |
Understanding risks that the company faces |
◆ |
Maintaining a group wide framework through which the risk-return trade-off associated with these risks can be assessed |
◆ |
Maintaining risk tolerances and supporting policies to limit exposure to a particular risk or combination of risks |
◆ |
Monitoring risk exposures and actively maintaining oversight of the company’s overall risk and solvency positions |
◆ |
Solvency, including Cash Capital at Holding and capital generation, to ensure that Aegon remains solvent even under adverse scenarios; |
◆ |
Liquidity, to ensure that Aegon has sufficient liquidity even under extreme scenarios; |
◆ |
Risk balance, to ensure a healthy balance of risk exposures; and |
◆ |
Responsible business with effective controls, which acknowledges an acceptable level of operational risk and stresses a low tolerance for (lack of) actions that could lead to material adverse risk events that result in breaking promises or not meeting reasonable expectations of customers, legal and regulatory breaches, reputational damage, financial detriment or financial misstatement. |
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. |
Aegon Annual Report on Form 20-F 2022 77 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
Risk acceptance: The risk is accepted; |
◆ |
Risk control: The risk is reduced by reducing the exposure, by improving processes and existing controls or by introducing new controls; |
◆ |
Risk transfer: The risk is reduced by insuring the company against the risk or by outsourcing activities to third parties; or |
◆ |
Risk avoidance: Activities that are the source of the risk are terminated. |
◆ |
Financial markets risks (particularly related to credit, equity, and interest rates) |
◆ |
Underwriting risks (particularly related to mortality and morbidity risks and policyholder behavior) |
◆ |
Operational risks (particularly related to reputation and continuity of operations). |
78 |
Aegon Annual Report on Form 20-F 2022 |
Risk management | ||||
Aegon Annual Report on Form 20-F 2022 79 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
Define roles and responsibilities, and risk reporting procedures for decision-makers |
◆ |
Institute a proper system of checks and balances |
◆ |
Provide a consistent framework for managing risk in line with the targeted risk profile |
◆ |
Facilitate risk diversification |
◆ |
The Supervisory Board and the Supervisory Board Risk Committee (SBRC) |
◆ |
The Executive Board and the Management Board |
◆ |
The Group Risk & Capital Committee (GRCC) and its sub-committees |
◆ |
The local Risk & Capital Committees |
◆ |
Risk strategy, risk tolerance, and risk governance; |
◆ |
Product development and pricing; |
◆ |
Risk assessment; |
◆ |
Risk responses and internal control effectiveness; |
◆ |
Risk monitoring; and |
◆ |
Risk reporting. |
80 |
Aegon Annual Report on Form 20-F 2022 |
Risk management | ||||
◆ |
Advising on risk-related matters including risk tolerance, risk governance, risk methodology, and risk policies |
◆ |
Supporting and facilitating the development, incorporation, maintenance, and embedding of the ERM framework and sound practices |
◆ |
Monitoring and challenging the implementation and effectiveness of ERM practices |
◆ |
The overarching ERM Framework supports Aegon’s corporate strategy and enables management to effectively deal with uncertainty and the associated risk-return trade-offs. |
◆ |
The GRA is linked to and supports Aegon’s strategy and purpose and translates these into risk tolerances and risk limits. |
◆ |
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 up to date and complete. 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. |
◆ |
Risk policies and standards set out requirements, roles and responsibilities, and processes to manage risks across the risk universe. |
◆ |
The ERM Framework is embedded in Aegon’s key business areas. The Own Risk Self-Assessment (ORSA) 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 identified on time to ensure strong delivery in a safe and timely manner. |
◆ |
Major business (and risk) decisions are risk-based; properly risk-informed and, where relevant, challenged by the Risk function to protect the balance sheet and proper customer conduct. |
◆ |
Risks across the risk universe are monitored and reported. |
◆ |
Risk culture is embedded across the company. |
◆ |
Risk culture encompasses the awareness of employees, management, and leadership of relevant risks and how risks are managed. |
Aegon Annual Report on Form 20-F 2022 81 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
82 |
Aegon Annual Report on Form 20-F 2022 |
Capital and liquidity management | ||||
◆ |
Promoting strong capital adequacy in Aegon’s businesses and operating units |
◆ |
Managing and allocating capital efficiently in support of the strategy and in line with its risk tolerance |
◆ |
Maintaining an efficient capital structure, with an emphasis on optimizing Aegon’s cost of capital |
◆ |
Maintaining adequate liquidity in both the operating units and the Holding to ensure that the company is able to meet its obligations by enforcing stringent liquidity risk policies |
◆ |
Maintaining continued access to international capital markets on competitive terms |
Capital requirements |
Regulatory capital requirement |
Minimum dividend payment level |
Operating level | Actual capitalization | ||||||||||||
US RBC CAL ratio |
100% | 350% | 400% | 425% | ||||||||||||
NL Life Solvency II ratio |
100% | 135% | 150% | 210% | ||||||||||||
Scottish Equitable Plc (UK) Solvency II ratio |
100% | 135% | 150% | 169% |
Aegon Annual Report on Form 20-F 2022 83 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
In the first quarter of 2022, a program was completed whereby certain policyholders were offered a lump-sum payment – exceeding the account value – in return for surrendering their variable annuity policy. The program reduces hedge costs for the remaining variable annuity portfolio and reduces Transamerica’s economic exposure at a price that is more favorable than the price that Aegon believes would be possible to achieve in a transaction with a third party; |
◆ |
Transamerica also adopted a long-term implied volatility assumption in April 2022. The long-term implied volatility assumption was higher than the then prevailing implied volatility for the valuation of its variable annuity guarantees. Previously, spikes in short-term volatility could result in more variability in the RBC ratio. Given that implied volatility does tend to revert to the mean over time, the adoption of a long-term volatility assumption will better protect Transamerica’s capital position against short-term market dislocations; and |
◆ |
In order to reduce the volatility of the RBC ratio caused by the exposure of base contract fees to equity markets, Transamerica established a voluntary reserve in the fourth quarter of 2022 that more closely aligns the recognition of the fees in capital with when they are earned. This has substantially reduced the sensitivity of Transamerica’s RBC ratio to equity market movements. |
84 |
Aegon Annual Report on Form 20-F 2022 |
Capital and liquidity management | ||||
◆ |
Gross financial leverage ratio |
◆ |
Fixed charge coverage |
◆ |
Various rating agency leverage metrics |
◆ |
Other metrics, including gross financial leverage divided by operating capital generation |
◆ |
Shareholders’ equity, excluding revaluation reserves and cash flow hedge reserves, based on IFRS as adopted by the EU |
◆ |
Non-controlling interests and shares related to long-term incentive plans that have not yet vested |
◆ |
Gross (or total) financial leverage |
Aegon Annual Report on Form 20-F 2022 85 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
December 31, 2022 |
Aegon N.V. |
Aegon USA |
Aegon the Netherlands |
Aegon UK |
||||||||||||
S&P Global 1) |
||||||||||||||||
Financial strength |
A+ | A+ | A+ | |||||||||||||
Long-term issuer |
BBB+ | |||||||||||||||
Senior debt |
BBB+ | |||||||||||||||
Subordinated debt |
BBB- | |||||||||||||||
Moody’s Investors Service 2) |
||||||||||||||||
Financial strength |
A1 | |||||||||||||||
Long-term issuer |
A3 | |||||||||||||||
Senior debt |
A3 | |||||||||||||||
Subordinated debt |
Baa1 | |||||||||||||||
A.M. Best 1) |
||||||||||||||||
Financial strength |
A |
1 |
The outlook on S&P’s ratings is negative. The financial strength rating of Aegon the Netherlands has been placed on CreditWatch with negative implications. |
2 |
Moody’s Investors Service’s long-term issuer rating, senior debt rating and subordinated debt rating have been placed on review for downgrade. |
December 31, 2022 1) |
December 31, 2021 | |||||
Group Own Funds |
16,332 | 19,431 | ||||
Group SCR |
7,844 | 9,226 | ||||
Group Solvency II ratio |
208% | 211% |
1 | The Solvency II ratios are estimates and are not final until filed with the respective supervisory authority. |
86 |
Aegon Annual Report on Form 20-F 2022 |
Capital and liquidity management | ||||
Scenario | Group |
Americas 1) |
NL Life |
SE Plc |
||||||||||||||||||||||||||||||||
2022 |
2021 | 2022 |
2021 | 2022 |
2021 | 2022 |
2021 | |||||||||||||||||||||||||||||
Equity markets |
-25% | (4%) | (8 | %) | (15%) | (24%) | (1%) | (2%) | 10% | 2% | ||||||||||||||||||||||||||
Equity markets |
+25% | 0% | 2 | % | 7% | 14% | (3%) | (1%) | (8%) | (3%) | ||||||||||||||||||||||||||
Interest rates |
-50bps | 2% | (00 | %) | 0% | 1% | 4% | 7% | 0% | (2%) | ||||||||||||||||||||||||||
Interest rates |
+50bps | (2%) | (1 | %) | 1% | 0% | (5%) | (8%) | (2%) | 1% | ||||||||||||||||||||||||||
Curve steepening |
+10bps | (0%) | (2 | %) | n.a. | n.a. | (1%) | (6%) | n.a | n.a. | ||||||||||||||||||||||||||
Govt spreads excl EIOPA VA |
-50bps | 1% | 0 | % | n.a. | n.a. | (2%) | (3%) | 1% | 4% | ||||||||||||||||||||||||||
Govt spreads excl EIOPA VA |
+50bps | (1%) | (0 | %) | n.a. | n.a. | 5% | 6% | (2%) | (4%) | ||||||||||||||||||||||||||
Non-govt spreads excl. EIOPA VA |
-50bps | 1% | (10 | %) | (2%) | (3%) | 8% | 11% | 0% | (9%) | ||||||||||||||||||||||||||
Non-govt spreads excl. EIOPA VA |
+50bps | (2%) | (10 | %) | 1% | 4% | (8%) | (11%) | (1%) | 1% | ||||||||||||||||||||||||||
US Credit Defaults 2) |
~+200bps | (18%) | (17 | %) | (42%) | (38%) | n.a. | n.a. | n.a. | n.a. | ||||||||||||||||||||||||||
UFR |
-15bps | (1%) | (2 | %) | n.a. | n.a. | (4%) | (6%) | n.a. | n.a. | ||||||||||||||||||||||||||
Longevity 3) |
+5bps | (3%) | (5 | %) | (4%) | (8%) | (6%) | (8%) | (1%) | (2%) | ||||||||||||||||||||||||||
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. | 2% | 1% | n.a. | n.a. | ||||||||||||||||||||||||||
EIOPA VA |
+5bps | (0%) | (0 | %) | n.a. | n.a. | (2%) | (1%) | n.a. | n.a. |
1 |
The sensitivities are presented on a Solvency II basis, after application of the conversion methodology to US regulated (life) companies. |
2 |
Additional 130 bps defaults for 1 year plus assumed rating migration |
3 |
Reduction of annual mortality rates by 5% |
Aegon Annual Report on Form 20-F 2022 87 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
December 31, 2022 |
December 31, 2021 |
|||||||||||||||
Available Own Funds |
Eligible Own Funds |
Available Own Funds |
Eligible Own Funds |
|||||||||||||
Unrestricted Tier 1 | 11,762 | 11,762 | 14,044 | 14,044 | ||||||||||||
Restricted Tier 1 | 1,822 | 1,822 | 2,364 | 2,364 | ||||||||||||
Tier 2 | 2,195 | 2,195 | 2,348 | 2,348 | ||||||||||||
Tier 3 | 746 | 552 | 675 | 675 | ||||||||||||
Total Tiers |
16,525 |
16,332 |
19,431 |
19,431 |
88 |
Aegon Annual Report on Form 20-F 2022 |
Regulation and supervision | ||||
Aegon Annual Report on Form 20-F 2022 89 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
90 |
Aegon Annual Report on Form 20-F 2022 |
Regulation and supervision | ||||
Aegon Annual Report on Form 20-F 2022 91 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
92 |
Aegon Annual Report on Form 20-F 2022 |
Code of Conduct | ||||
Aegon Annual Report on Form 20-F 2022 93 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; |
◆ |
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 company; and |
◆ |
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. |
94 |
Aegon Annual Report on Form 20-F 2022 |
Controls and procedures | ||||
Aegon Annual Report on Form 20-F 2022 95 |
96 |
Aegon Annual Report on Form 20-F 2022 |
Aegon Annual Report on Form 20-F 2022 |
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About Aegon Governance and risk management Financial information Non-financial information | |||
Financial information |
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122 |
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Consolidated financial statements of Aegon N.V. |
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125 |
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126 |
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127 |
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129 |
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Notes to the consolidated financial statements |
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51 |
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304 |
52 |
98 |
Aegon Annual Report on Form 20-F 2022 |
Financial statements of Aegon N.V. |
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306 |
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307 |
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Notes to the financial statements of Aegon N.V. |
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308 |
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308 |
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Other information |
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Aegon Annual Report on Form 20-F 2022 99 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
In EUR millions (except per share amount) |
2022 |
2021 | 2020 | 2019 | 2018 | |||||||||||||||
Amounts based upon IFRS |
||||||||||||||||||||
Premium income 1) |
13,192 | 13,731 | 14,105 | 16,015 | 17,329 | |||||||||||||||
Investment income 1) |
5,613 | 4,893 | 5,087 | 5,319 | 4,772 | |||||||||||||||
Total revenues 1) |
21,331 | 21,091 | 21,318 | 23,597 | 24,439 | |||||||||||||||
Result before tax from continuing operations 1) |
(1,543) | 1,164 | (958 | ) | 1,197 | (154) | ||||||||||||||
Net result from continuing and discontinued operations |
(1,404) | 2,029 | (135 | ) | 1,236 | 707 | ||||||||||||||
Earnings per common share |
||||||||||||||||||||
Basic |
(0.73) | 0.94 | (0.09 | ) | 0.56 | 0.29 | ||||||||||||||
Diluted |
(0.73) | 0.94 | (0.09 | ) | 0.56 | 0.29 | ||||||||||||||
Earnings per common share B |
||||||||||||||||||||
Basic |
(0.02) | 0.02 | - | 0.01 | 0.01 | |||||||||||||||
Diluted |
(0.02) | 0.02 | - | 0.01 | 0.01 | |||||||||||||||
Earnings per common share from continuing operations |
||||||||||||||||||||
Basic |
(0.54) | 0.48 | (0.33 | ) | 0.45 | (0.08) | ||||||||||||||
Diluted |
(0.54) | 0.48 | (0.33 | ) | 0.45 | (0.08) | ||||||||||||||
Earnings per common share B from continuing operations |
||||||||||||||||||||
Basic |
(0.01) | 0.01 | (0.01 | ) | 0.01 | - | ||||||||||||||
Diluted |
(0.01) | 0.01 | (0.01 | ) | 0.01 | - |
1 |
Amounts for 2021-2018 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
In EUR millions |
2022 |
2021 | 2020 | 2019 | 2018 | |||||||||||||||
Amounts based upon IFRS |
||||||||||||||||||||
Total assets |
401,786 | 468,252 | 443,814 | 439,769 | 392,008 | |||||||||||||||
Insurance and investment contracts 1) |
278,932 | 400,104 | 370,286 | 371,014 | 329,974 | |||||||||||||||
Borrowings including subordinated and trust pass-through securities 1) |
6,464 | 11,980 | 10,735 | 11,650 | 13,583 | |||||||||||||||
Shareholders’ equity |
12,071 | 23,813 | 22,018 | 21,842 | 19,189 | |||||||||||||||
1 2022 excludes the liabilities of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
100 |
Aegon Annual Report on Form 20-F 2022 |
Selected financial data | ||||
In thousands |
2022 |
2021 | 2020 | 2019 | 2018 | |||||||||||||||
Balance at January 1 |
2,106,313 | 2,098,114 | 2,105,139 | 2,095,648 | 2,095,648 | |||||||||||||||
Share issuance |
- | - | - | - | - | |||||||||||||||
Stock dividends |
13,782 | 10,665 | 2,466 | 9,491 | - | |||||||||||||||
Shares withdrawn |
(10,665 | ) | (2,466 | ) | (9,491 | ) | - | - | ||||||||||||
Balance at end of period |
2,109,430 |
2,106,313 |
2,098,114 |
2,105,139 |
2,095,648 |
In thousands |
2022 |
2021 | 2020 | 2019 | 2018 | |||||||||||||||
Balance at January 1 |
568,839 | 571,795 | 585,022 | 585,022 | 585,022 | |||||||||||||||
Shares withdrawn |
(22,643 | ) | (2,956 | ) | (13,227 | ) | - | - | ||||||||||||
Balance at end of period |
546,196 |
568,839 |
571,795 |
585,022 |
585,022 |
EUR per common share | USD per common share | |||||||||||||||||||||||
Year |
Interim | Final | Total | Interim | Final | Total | ||||||||||||||||||
2018 |
0.14 | 0.15 | 0.29 | 0.16 | 0.17 | 0.33 | ||||||||||||||||||
2019 |
0.15 | 0.00 1) |
0.15 | 0.17 | - | 0.17 | ||||||||||||||||||
2020 |
0.06 | 0.06 | 0.12 | 0.07 | 0.07 | 0.14 | ||||||||||||||||||
2021 |
0.08 | 0.09 | 0.17 | 0.09 | 0.10 | 0.19 | ||||||||||||||||||
2022 |
0.11 | 0.12 2) |
0.23 | 0.11 |
1 |
Aegon forewent the 2019 final dividend of EUR 0.16 to strengthen its balance sheet and improve its risk profile. |
2 |
Proposed. |
Aegon Annual Report on Form 20-F 2022 101 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
102 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations – Worldwide | ||||
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||
Operating result after tax |
1,525 |
1,582 |
(4) |
|||||||||
Tax on operating result |
394 | 324 | 22 |
|||||||||
Operating result |
||||||||||||
Americas |
790 | 790 | - |
|||||||||
The Netherlands |
783 | 755 | 4 |
|||||||||
United Kingdom |
206 | 184 | 12 |
|||||||||
International |
167 | 143 | 17 |
|||||||||
Asset Management |
193 | 253 | (24) |
|||||||||
Holding and other activities |
(220 | ) | (219 | ) | (1) |
|||||||
Operating result |
1,918 |
1,906 |
1 |
|||||||||
Fair value items |
251 | 854 | (71 |
) | ||||||||
Realized gains / (losses) on investments |
(650 | ) | 446 | n.m. |
||||||||
Net impairments |
(36 | ) | 53 | n.m. |
||||||||
Non-operating items |
(435 |
) |
1,352 |
n.m. |
||||||||
Other income / (charges) |
(2,321 | ) | (780 | ) | (198) |
|||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) |
(837 |
) |
2,478 |
n.m. |
||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
85 | 78 | 10 |
|||||||||
Income tax |
(567 | ) | (449 | ) | (26 |
) | ||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
(85 | ) | (78 | ) | (10) |
|||||||
Net result |
(1,404) |
2,029 |
n.m. |
|||||||||
Operating expenses |
3,902 | 3,775 | 3 |
|||||||||
Addressable expenses 1) |
3,028 | 3,094 | (2) |
1 |
Addressable expenses are reported at constant currency at the FY 2022 weighted average foreign exchange rate. |
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||
Americas |
473 | 352 | 34 |
|||||||||
The Netherlands |
73 | 74 | (2 |
) | ||||||||
United Kingdom |
26 | 31 | (15 |
) | ||||||||
International |
253 | 228 | 12 |
|||||||||
Total recurring plus 1/10 single |
825 |
686 |
21 |
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||
New premium production accident & health insurance |
170 | 170 | (1 |
) | ||||||||
New premium production property & casualty insurance |
106 | 96 | 9 |
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||
Americas |
34,229 | 32,500 | 5 |
|||||||||
The Netherlands |
22,410 | 19,902 | 13 |
|||||||||
United Kingdom |
9,949 | 24,764 | (60 |
) | ||||||||
International |
660 | 387 | 71 |
|||||||||
Asset Management 1 ) |
127,088 | 157,290 | (19) |
|||||||||
Total gross deposits |
194,336 |
234,843 |
(17) |
Aegon Annual Report on Form 20-F 2022 | 103 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||
Americas |
(16,083 | ) | (17,656 | ) | 9 |
|||||||
The Netherlands |
1,201 | (273 | ) | n.m. |
||||||||
United Kingdom |
(2,765 | ) | 10,228 | n.m. |
||||||||
International |
28 | 191 | (85) |
|||||||||
Asset Management 1) |
(229 | ) | 12,885 | n.m. |
||||||||
Total net deposits / (outflows) |
(17,848) |
5,374 |
n.m. |
Amounts in EUR millions | Americas |
The Nether- lands |
United Kingdom |
Interna- tional |
Asset Manage- ment |
Holding and other activities |
Segment total |
Associates and Joint Ventures elimina- tions |
Consoli- dated |
|||||||||||||||||||||||||||
Total life insurance premiums |
7,329 | 1,168 | 4,081 | 1,280 | - | 6 | 13,864 | (1,016 | ) | 12,848 | ||||||||||||||||||||||||||
Accident & health insurance premiums |
1,407 | 257 | - | 184 | - | - | 1,848 | (79 | ) | 1,769 | ||||||||||||||||||||||||||
Property & casualty insurance premiums |
- | 144 | - | 182 | - | - | 326 | (182 | ) | 144 | ||||||||||||||||||||||||||
Total gross premiums |
8,735 |
1,569 |
4,081 |
1,646 |
- |
6 |
16,037 |
(1,276 |
) |
14,761 |
||||||||||||||||||||||||||
Investment income |
3,467 | 1,728 | 1,951 | 297 | 12 | (3 | ) | 7,453 | (114 | ) | 7,338 | |||||||||||||||||||||||||
Fee and commission income |
2,021 | 325 | 217 | 42 | 693 | (187 | ) | 3,111 | (240 | ) | 2,871 | |||||||||||||||||||||||||
Other revenue |
- | - | - | 26 | 5 | - | 31 | (30 | ) | 1 | ||||||||||||||||||||||||||
Total revenues |
14,223 |
3,622 |
6,250 |
2,011 |
710 |
(184 |
) |
26,633 |
(1,661 |
) |
24,972 |
|||||||||||||||||||||||||
Number of employees, including agent employees |
6,153 | 3,609 | 2,621 | 4,281 | 1,464 | 958 | 19,087 |
Amounts in EUR millions | Americas | The Nether- lands |
United Kingdom |
Interna- tional |
Asset Manage- ment |
Holding and other activities |
Segment total |
Associates and Joint Ventures eliminations |
Consoli- dated |
|||||||||||||||||||||||||||
Total life insurance premiums |
6,917 | 1,323 | 4,613 | 1,372 | - | - | 14,225 | (825 | ) | 13,400 | ||||||||||||||||||||||||||
Accident & health insurance premiums |
1,273 | 254 | 3 | 179 | - | - | 1,709 | (67 | ) | 1,643 | ||||||||||||||||||||||||||
General insurance premiums |
- | 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 | (19 | ) | 7,042 | (75 | ) | 6,967 | |||||||||||||||||||||||||
Fee and commission income |
1,920 | 300 | 223 | 59 | 800 | (183 | ) | 3,120 | (335 | ) | 2,785 | |||||||||||||||||||||||||
Other revenue |
- | - | - | 14 | 2 | 12 | 27 | (15 | ) | 13 | ||||||||||||||||||||||||||
Total revenues |
13,019 |
4,101 |
6,531 |
2,418 |
814 |
(190 |
) |
26,693 |
(1,484 |
) |
25,209 |
|||||||||||||||||||||||||
Number of employees, including agent employees |
6,942 | 3,534 | 2,476 | 7,323 | 1,675 | 321 | 22,271 |
104 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations | ||||
◆ |
The Americas’ operating result in 2022 remained stable compared with 2021 at EUR 790 million. Strengthening of the US dollar, an improvement in the mortality claims experience in Life, and lower expenses as a result of the operational improvement plan benefited the result. This was offset by a lower result from Variable Annuities where fee income was negatively impacted by adverse markets and expected outflows. In addition, lower fee revenues in Mutual Funds and Retirement Plans and less favorable morbidity experience in Accident & Health contributed to the offset. |
◆ |
Operating result from the Netherlands increased by 4% compared with 2021 to EUR 783 million in 2022. The results of Bank and Workplace Solutions showed an increase, supported by higher interest rates, business growth, and non-life reserve releases, while the results of Life and Mortgages decreased, reflecting lower investment income from mortgages. |
◆ |
In the United Kingdom, the operating result rose by 12% compared with 2021 to EUR 206 million in 2022. The increase was mainly the result of lower operating expenses, driven by lower addressable expenses. Revenues increased compared with 2021 as higher net investment income on the general account more than offset the impacts from the loss of earnings due to the gradual run-off of the traditional product portfolio. |
◆ |
The operating result from International increased by 17% compared with 2021 to EUR 167 million in 2022. The increase reflects an improvement in claims experience, business growth, and an increase in Aegon’s economic ownership in its Brazilian business. These items more than offset a reduction in TLB’s operating result compared with 2021 as a result of a reinsurance treaty with Transamerica. |
◆ |
The operating result from Asset Management decreased by 24% compared with 2021 to EUR 193 million in 2022. This decrease was mainly driven by lower performance fees net of performance-based compensation in Strategic Partnerships. Management fees in Global Platforms were negatively impacted by a reduction in asset balances due to adverse market conditions and outflows, and were only partly offset by lower expenses. |
◆ |
The operating result for Holdings and other activities amounted to a loss of EUR 220 million in 2022 compared with a loss of EUR 219 million in 2021, and mainly reflects funding expenses. |
Aegon Annual Report on Form 20-F 2022 | 105 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Note |
2022 |
2021 |
||||||||||
Employee expenses from continuing operations |
14 |
1,707 | 1,511 | |||||||||
Administrative expenses from continuing operations |
14 |
1,218 | 1,294 | |||||||||
Operating expenses from continuing operations |
2,926 |
2,803 |
||||||||||
Operating expenses from discontinued operations |
687 | 675 | ||||||||||
Operating expenses from continuing operations and discontinued operations |
3,613 |
3,478 |
||||||||||
Operating expenses related to joint ventures and associates |
289 | 297 | ||||||||||
Operating expenses in result of operations |
3,902 |
3,775 |
||||||||||
Operating expenses related to joint ventures and associates |
(289 | ) | (297 | ) | ||||||||
Deferred acquisition expenses |
(53 | ) | (51 | ) | ||||||||
Restructuring expenses |
(98 | ) | 28 | |||||||||
Operational improvement plan expenses |
(401 | ) | (389 | ) | ||||||||
Acquisition and disposals |
(33 | ) | (163 | ) | ||||||||
FX effect constant currency and other |
- | 190 | ||||||||||
Addressable expenses |
3,028 |
3,094 |
106 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations – Americas | ||||
Amounts in USD millions | Amounts in EUR millions | |||||||||||||||||||||||
2022 |
2021 | % |
2022 |
2021 | % | |||||||||||||||||||
Operating result after tax |
703 |
847 |
(17 |
) |
668 |
716 |
(7 |
) | ||||||||||||||||
Tax on operating result |
129 | 88 | 48 |
123 | 74 | 66 | ||||||||||||||||||
Operating result |
||||||||||||||||||||||||
Individual Solutions |
549 | 668 | (18 |
) |
521 | 565 | (8 | ) | ||||||||||||||||
Workplace Solutions |
284 | 268 | 6 |
269 | 226 | 19 | ||||||||||||||||||
Operating result |
833 |
935 |
(12 |
) |
790 |
790 |
11 |
|||||||||||||||||
Fair value items |
(1,732 | ) | 826 | n.m. |
(1,644 | ) | 698 | n.m. | ||||||||||||||||
Realized gains / (losses) on investments |
(505 | ) | 370 | n.m. |
(479 | ) | 313 | n.m. | ||||||||||||||||
Net impairments |
(13 | ) | 17 | n.m. |
(13 | ) | 15 | n.m. | ||||||||||||||||
Non-operating items |
(2,250 |
) |
1,213 |
n.m. |
(2,136 |
) |
1,025 |
n.m. |
||||||||||||||||
Other income / (charges) |
(555 | ) | (789 | ) | 30 |
(526 | ) | (667 | ) | 21 | ||||||||||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) |
(1,972 |
) |
1,359 |
n.m. |
(1,872 |
) |
1,149 |
n.m. |
||||||||||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
- |
- |
n.m. |
- |
- |
n.m. |
||||||||||||||||||
Income tax |
486 |
(162 |
) |
n.m. |
462 |
(137 |
) |
n.m. |
||||||||||||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
- |
- |
n.m. |
- |
- |
n.m. |
||||||||||||||||||
Net result |
(1,486 |
) |
1,197 |
n.m. |
(1,411 |
) |
1,012 |
n.m. |
||||||||||||||||
Life insurance gross premiums |
7,720 | 8,184 | (6 |
) |
7,329 | 6,917 | 6 | |||||||||||||||||
Accident and health insurance premiums |
1,482 | 1,506 | (2 |
) |
1,407 | 1,273 | 11 | |||||||||||||||||
Total gross premiums |
9,202 |
9,689 |
(5 |
) |
8,735 |
8,190 |
7 |
|||||||||||||||||
Investment income |
3,652 | 3,441 | 6 |
3,467 | 2,909 | 19 | ||||||||||||||||||
Fee and commission income |
2,129 | 2,272 | (6 |
) |
2,021 | 1,920 | 5 | |||||||||||||||||
Other revenues |
- | - | n.m. |
- | - | n.m. | ||||||||||||||||||
Total revenues |
14,983 |
15,403 |
(3 |
) |
14,223 |
13,019 |
9 |
|||||||||||||||||
Operating expenses |
1,757 | 1,705 | 3 |
1,668 | 1,441 | 16 | ||||||||||||||||||
Addressable expenses 1) |
1,511 | 1,541 | (2 |
) |
1,434 | 1,464 | (2 | ) | ||||||||||||||||
1 Addressable expenses are reported at constant currency at the FY 2022 weighted average foreign exchange rate. |
||||||||||||||||||||||||
New life sales |
||||||||||||||||||||||||
Amounts in USD millions | Amounts in EUR millions | |||||||||||||||||||||||
2022 |
2021 | % |
2022 |
2021 | % |
|||||||||||||||||||
Individual Solutions |
431 | 360 | 20 |
409 | 304 | 35 |
||||||||||||||||||
Workplace Solutions |
67 | 57 | 17 |
63 | 48 | 31 |
||||||||||||||||||
Total recurring plus 1/10 single |
498 |
417 |
19 |
473 |
352 |
34 |
||||||||||||||||||
Amounts in USD millions | Amounts in EUR millions | |||||||||||||||||||||||
2022 |
2021 | % |
2022 |
2021 | % |
|||||||||||||||||||
New premium production accident & health insurance |
133 | 152 | (12) |
126 | 129 | (2) |
Aegon Annual Report on Form 20-F 2022 | 107 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Amounts in USD millions | Amounts in EUR millions | |||||||||||||||||||||||
2022 |
2021 | % |
2022 |
2021 | % |
|||||||||||||||||||
Individual Solutions |
8,757 | 10,298 | (15 |
) |
8,313 | 8,704 | (4 |
) | ||||||||||||||||
Workplace Solutions |
27,300 | 28,154 | (3 |
) |
25,916 | 23,797 | 9 |
|||||||||||||||||
Total gross deposits |
36,057 |
38,451 |
(6 |
) |
34,229 |
32,500 |
5 |
|||||||||||||||||
Net deposits (on and off balance) |
||||||||||||||||||||||||
Amounts in USD millions | Amounts in EUR millions | |||||||||||||||||||||||
2022 |
2021 | % |
2022 |
2021 | % |
|||||||||||||||||||
Individual Solutions |
(9,040 | ) | (7,709 | ) | (17 |
) |
(8,582 | ) | (6,516 | ) | (32 |
) | ||||||||||||
Workplace Solutions |
(7,902 | ) | (13,179 | ) | 40 |
(7,502 | ) | (11,140 | ) | 33 |
||||||||||||||
Total net deposits / (outflows) |
(16,942 |
) |
(20,889 |
) |
19 |
(16,083 |
) |
(17,656 |
) |
9 |
Weighted average rate | Closing rate as of | |||||||||||||||||||
Per 1 EUR | 2022 |
2021 | December 31, 2022 |
December 31, 2021 | ||||||||||||||||
USD |
1.0534 | 1.1831 | 1.0673 | 1.1372 |
108 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations – Americas | ||||
◆ |
Fair value hedges without an accounting match under IFRS resulted in a loss of USD 1,824 million and are mainly related to the dynamic hedge program for GMDB and GMIB riders in the legacy Variable Annuities portfolio. This program targets to hedge the economic liability and showed 97% economic hedge effectiveness. However, under IFRS reporting, discount rates for liabilities are locked-in, which led to an accounting mismatch and resulted in a fair value loss from the increase in interest rates during the year. |
◆ |
The result on fair value hedges with an accounting match – which includes the hedges program for GMWB riders – amounted to a loss of USD 52 million caused by losses on unhedged basis and volatility risks. |
◆ |
Gains on fair value investments of USD 143 million, mainly driven by the outperformance of multi-family property investments and real estate with commodity exposure at the beginning of the year. |
◆ |
The Individual Life operating result of USD 161 million in 2022 compared with a loss of USD 111 million in 2021. The Individual Life operating result was impacted by adverse mortality experience of USD 148 million. USD 90 million of the adverse claims experience was directly attributable to COVID-19 as cause of death. The remaining mortality experience is mainly attributed to higher claims frequency in Universal Life and Traditional Life, which Aegon believes to be in part indirectly related to COVID-19. The Life operating result was also supported by lower operating expenses, and the one-time recognition of the TLB operating result from the third quarter of 2022 of USD 28 million, following the reinsurance treaty |
Aegon Annual Report on Form 20-F 2022 | 109 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
between TLB and Transamerica that commenced retrospectively on July 1, 2022. This reinsurance treaty contributed additional USD 30 million to the operating result in the fourth quarter of 2022. |
◆ |
Individual Accident & Health operating result of USD 284 million in 2022 compared with USD 356 million in 2021, mainly due to less favorable morbidity experience of USD 118 million in 2022 compared with USD 211 million in 2021. Most of the favorable morbidity experience was related to the closed block of Long-Term Care insurance, where the actual to expected claim ratio amounted to 81% in 2022 compared to 64% in 2021. This was partly driven by the release of the incurred but not reported (IBNR) reserve in the first half of 2022 that had been set up in 2020, as new claims are now back at pre-pandemic levels. |
◆ |
The Mutual Funds operating result of USD 39 million in 2022 compared with USD 58 million in 2021 due to a decrease in fees from unfavorable market performance and net outflows. |
◆ |
The Variable Annuities operating result of USD 33 million in 2022 compared with USD 345 million in 2021, driven by higher benefit costs and lower fee revenues, a consequence of expected outflows and the impact of lower equity markets as well as higher interest rates on account balances. |
◆ |
The Fixed Annuities operating result of USD 32 million in 2022 compared with USD 20 million in 2021, mainly due to the impact of higher interest rates leading to benefits from new annuitizations. |
◆ |
Life operating result of USD 35 million in 2022 compared with USD 13 million in 2021, reflecting better mortality experience and improved margins. |
◆ |
Accident & Health operating result of USD 11 million in 2022 compared with USD 21 million in 2021, reflecting higher expenses and worse than expected persistency. |
◆ |
Retirement Plans operating result of USD 162 million in 2022 compared with USD 156 million in 2021, as higher revenues from the Advice Center, participant fees, and transaction fees, as well as higher investment income more than offset a decrease in fee income from lower account values as a result of market movements. |
◆ |
Stable Value Solutions operating result of USD 76 million in 2022 compared with USD 77 million in 2021. |
110 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations – The Netherlands | ||||
Amounts in EUR millions | 2022 |
2021 | % | |||||||||
Operating result after tax |
609 |
573 |
6 |
|||||||||
Tax on operating result |
173 | 181 | (4 |
) | ||||||||
Operating result |
||||||||||||
Life |
463 | 519 | (11 |
) | ||||||||
Mortgages |
68 | 71 | (4 |
) | ||||||||
Bank |
128 | 115 | 12 |
|||||||||
Workplace solutions |
123 | 50 | 146 |
|||||||||
Operating result |
783 |
755 |
4 |
|||||||||
Fair value items |
1,897 | 221 | n.m. |
|||||||||
Realized gains / (losses) on investments |
(181 | ) | 118 | n.m. |
||||||||
Net impairments |
15 | 40 | (63 |
) | ||||||||
Non-operating items |
1,731 |
378 |
n.m. |
|||||||||
Other income / (charges) |
(1,970 | ) | (23 | ) | n.m. |
|||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) |
543 |
1,110 |
(51 |
) | ||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
- | - | n.m. |
|||||||||
Income tax |
(1,000 | ) | (276 | ) | n.m. |
|||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
- | - | n.m. |
|||||||||
Net result |
(457 |
) |
833 |
n.m. |
||||||||
Life insurance gross premiums |
1,168 | 1,323 | (12 |
) | ||||||||
Accident and health insurance premiums |
257 | 254 | 1 |
|||||||||
Property & casualty insurance |
144 | 136 | 5 |
|||||||||
Total gross premiums |
1,569 |
1,713 |
(8 |
) | ||||||||
Investment income |
1,728 | 2,088 | (17 |
) | ||||||||
Fee and commission income |
325 | 300 | 8 |
|||||||||
Other revenues |
- | - | n.m. |
|||||||||
Total revenues |
3,622 |
4,101 |
(12 |
) | ||||||||
Operating expenses |
738 | 729 | 1 |
|||||||||
Addressable expenses |
610 | 607 | 1 |
|||||||||
New Life Sales |
||||||||||||
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||
Life |
73 | 74 | (2 |
) | ||||||||
Total recurring plus 1/10 single |
73 |
74 |
(2 |
) | ||||||||
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||
Mortgage origination |
8,743 | 10,856 | (19 |
) | ||||||||
New premium production accident & health insurance |
8 | 10 | (23 |
) | ||||||||
New premium production property & casualty insurance |
23 | 20 | 15 |
1 |
Following the announcement of the transaction with a.s.r. on October 27, 2022 the results for Aegon the Netherlands are reported as discontinued operations and classified as held for sale for IFRS reporting purposes. |
Aegon Annual Report on Form 20-F 2022 | 111 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||
Bank |
21,376 | 19,006 | 12 |
|||||||||
Workplace solutions |
1,034 | 896 | 15 |
|||||||||
Total gross deposits |
22,410 |
19,902 |
13 |
|||||||||
Net deposits (on and off balance) |
||||||||||||
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||
Bank |
367 | (1,012 | ) | n.m. |
||||||||
Workplace solutions |
834 | 739 | 13 |
|||||||||
Total net deposits / (outflows) |
1,201 |
(273 |
) |
n.m. |
112 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations – The Netherlands | ||||
◆ |
The operating result from Life decreased by 11% compared with 2021 to EUR 463 million in 2022. The decrease was mainly driven by lower investment income, driven by the sale of corporate bonds due to the rising rate environment, and also by lower prepayment compensations and yields on mortgages. |
◆ |
The operating result from Mortgages decreased by 4% compared with 2021 to EUR 68 million in 2022. The impact of higher fees resulting from business growth was more than offset by the combination of lower revenues from lower customer prepayment compensations and lower yields on mortgages. |
◆ |
The operating result from Bank rose by 12% compared with 2021 to EUR 128 million in 2022. The main contributor was a higher interest margin due to higher interest rates. Furthermore, higher fee income from more fee-paying customers at Knab contributed favorably. |
◆ |
The operating result from Workplace Solutions increased by EUR 73 million to EUR 123 million in 2022. This primarily reflected increased earnings of the non-life disability business, mostly due reserve releases and elevated recoveries. Furthermore, business growth contributed favorably. |
1 |
Following the announcement of the transaction with a.s.r. on October 27, 2022 the results for Aegon the Netherlands are reported as discontinued operations and classified as held for sale for IFRS reporting purposes. |
Aegon Annual Report on Form 20-F 2022 113 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
114 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations – United Kingdom | ||||
Amounts in GBP millions | Amounts in EUR millions | |||||||||||||||||||||||
2022 |
2021 | % | 2022 |
2021 | % | |||||||||||||||||||
Operating result after tax |
150 |
143 |
5 |
176 |
166 |
6 |
||||||||||||||||||
Tax on operating result |
25 | 15 | 70 |
29 | 17 | 71 |
||||||||||||||||||
Operating result |
175 |
158 |
11 |
206 |
184 |
12 |
||||||||||||||||||
Fair value items |
8 | (53 | ) | n.m. |
10 | (62 | ) | n.m. |
||||||||||||||||
Realized gains / (losses) on investments |
3 | 9 | (70 |
) |
3 | 10 | (70) |
|||||||||||||||||
Net impairments |
(10 | ) | - | n.m. |
(11 | ) | - | n.m. |
||||||||||||||||
Non-operating items |
1 |
(44 |
) |
n.m. |
1 |
(51 |
) |
n.m. |
||||||||||||||||
Other income / (charges) |
(32 | ) | 1 | n.m. |
(37 | ) | 1 | n.m. |
||||||||||||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) |
145 |
115 |
26 |
170 |
134 |
27 |
||||||||||||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
- | - | n.m. |
- | - | n.m. |
||||||||||||||||||
Income tax |
1 | (10 | ) | n.m. |
1 | (12 | ) | n.m. |
||||||||||||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
- | - | n.m. |
- | - | n.m. |
||||||||||||||||||
Net result |
146 |
104 |
39 |
171 |
122 |
41 |
||||||||||||||||||
Life insurance gross premiums |
3,480 | 3,966 | (12 |
) |
4,081 | 4,613 | (12) |
|||||||||||||||||
Accident and health insurance premiums |
- | 3 | n.m. |
- | 3 | n.m. |
||||||||||||||||||
Total gross premiums |
3,480 |
3,969 |
(12 |
) |
4,081 |
4,616 |
(12 |
) | ||||||||||||||||
Investment income |
1,664 | 1,454 | 14 |
1,951 | 1,691 | 15 |
||||||||||||||||||
Fee and commission income |
185 | 192 | (3 |
) |
217 | 223 | (2 |
) | ||||||||||||||||
Total revenues |
5,330 |
5,615 |
(5 |
) |
6,250 |
6,531 |
(4 |
) | ||||||||||||||||
Operating expenses |
375 | 386 | (3 |
) |
439 | 448 | (2 |
) | ||||||||||||||||
Addressable expenses 1) |
319 | 335 | (5 |
) |
374 | 393 | (5 |
) |
1 |
Addressable expenses are reported at constant currency at the FY 2022 weighted average foreign exchange rate. |
Amounts in GBP millions | Amounts in EUR millions | |||||||||||||||||||||||
2022 |
2021 | % |
2022 |
2021 | % |
|||||||||||||||||||
Total recurring plus 1/10 single |
22 |
27 |
(16 |
) |
26 |
31 |
(15 |
) |
Amounts in GBP millions | Amounts in EUR millions | |||||||||||||||||||||||
2022 |
2021 | % |
2022 |
2021 | % |
|||||||||||||||||||
Total gross deposits |
8,485 |
21,292 |
(60 |
) |
9,949 |
24,764 |
(60 |
) |
Aegon Annual Report on Form 20-F 2022 | 115 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Amounts in GBP millions | Amounts in EUR millions | |||||||||||||||||||||||
2022 |
2021 | % | 2022 |
2021 | % |
|||||||||||||||||||
Retail |
(877 | ) | (210 | ) | n.m. |
(1,028 | ) | (244 | ) | n.m. |
||||||||||||||
Workplace solutions |
2,223 | 1,493 | 43 |
2,607 | 1,736 | 43 |
||||||||||||||||||
Institutional |
(2,743 | ) | 8,754 | n.m. |
(3,217 | ) | 10,181 | n.m. |
||||||||||||||||
Traditional products |
(961 | ) | (1,246 | ) | 23 |
(1,127 | ) | (1,449 | ) | 22 |
||||||||||||||
Total net deposits / (outflows) |
(2,358 |
) |
8,792 |
n.m. |
(2,765 |
) |
10,225 |
n.m. |
Weighted average rate | Closing rate as of | |||||||||||||||||||
Per 1 EUR |
2022 |
2021 | December 31, 2022 |
December 31, 2021 | ||||||||||||||||
Pound Sterling |
0.8528 | 0.8598 | 0.8872 | 0.8396 |
116 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations – United Kingdom | ||||
Aegon Annual Report on Form 20-F 2022 | 117 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Amounts in EUR millions | 2022 |
2021 | % |
|||||||||
Operating result after tax |
120 |
110 |
9 |
|||||||||
Tax on operating result |
47 | 33 | 43 |
|||||||||
Operating result |
||||||||||||
Spain & Portugal |
78 | 75 | 4 |
|||||||||
China |
26 | 24 | 8 |
|||||||||
Brazil |
27 | (2 | ) | n.m. |
||||||||
TLB |
60 | 77 | (23 |
) | ||||||||
Other |
(24 | ) | (31 | ) | 25 |
|||||||
Operating result |
167 |
143 |
17 |
|||||||||
Fair value items |
21 | (18 | ) | n.m. |
||||||||
Realized gains / (losses) on investments |
- | 2 | (81 |
) | ||||||||
Net impairments |
(8 | ) | 1 | n.m. |
||||||||
Non-operating items |
13 |
(15 |
) |
n.m. |
||||||||
Other income / (charges) |
373 | 65 | n.m. |
|||||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) |
553 |
193 |
186 |
|||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
37 | 20 | 84 |
|||||||||
Income tax |
(36 | ) | (36 | ) | - |
|||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
(37 | ) | (20 | ) | (84 |
) | ||||||
Net result |
516 |
157 |
n.m. |
|||||||||
Life insurance gross premiums |
1,280 | 1,372 | (7 |
) | ||||||||
Accident and health insurance premiums |
184 | 179 | 3 |
|||||||||
Property & casualty insurance premiums |
182 | 432 | (58 |
) | ||||||||
Total gross premiums |
1,646 |
1,984 |
(17 |
) | ||||||||
Investment income |
297 | 361 | (18 |
) | ||||||||
Fee and commission income |
42 | 59 | (29 |
) | ||||||||
Other revenues |
26 | 14 | 91 |
|||||||||
Total revenues |
2,011 |
2,418 |
(17 |
) | ||||||||
Operating expenses |
334 | 424 | (21 |
) | ||||||||
Addressable expenses 1) |
122 | 118 | 4 |
1 |
Addressable expenses are reported at constant currency at the FY 2022 weighted average foreign exchange rate. |
Amounts in EUR millions | 2022 |
2021 | % | |||||||||
Spain & Portugal |
56 | 48 | 17 |
|||||||||
China |
87 | 90 | (4) |
|||||||||
Brazil |
105 | 77 | 36 |
|||||||||
TLB |
5 | 11 | (52) |
|||||||||
Other |
- | 2 | (88) |
|||||||||
Total recurring plus 1/10 single |
253 |
228 |
11 |
|||||||||
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||
New premium production accident & health insurance |
35 | 31 | 15 |
|||||||||
New premium production property & casualty insurance |
82 | 76 | 8 |
118 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations – International | ||||
Gross deposits (on and off balance) |
||||||||||||||
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||||
Spain & Portugal |
7 | 15 | (56 |
) | ||||||||||
China |
18 | 10 | 77 |
|||||||||||
Brazil |
635 | 361 | 76 |
|||||||||||
Other |
- | - | n.m. |
|||||||||||
Total gross deposits |
660 |
387 |
71 |
|||||||||||
Net deposits (on and off balance) |
Amounts in EUR millions |
2022 |
2021 | % |
|||||||||||||
Spain & Portugal |
(4 | ) | - | n.m. |
||||||||||||
China |
9 | 3 | n.m. |
|||||||||||||
Brazil |
23 | 187 | (88 |
) | ||||||||||||
Other |
- | - | n.m. |
|||||||||||||
Total net deposits / (outflows) |
28 |
191 |
(85 |
) | ||||||||||||
Exchange rates |
||||||||||||||||
Weighted average rate | Closing rate as of | |||||||||||||||
Per 1 EUR |
2022 |
2021 | December 31, 2022 |
December 31, 2021 | ||||||||||||
USD |
1.0534 | 1.1831 | 1.0673 | 1.1372 | ||||||||||||
Chinese Yuan Renminbi |
7.0810 | 7.6313 | 7.4192 | 7.2478 | ||||||||||||
Hungarian Florint |
391.1604 | 358.4993 | 400.4500 | 368.5650 | ||||||||||||
Polish Zloty |
4.6845 | 4.5641 | 4.6812 | 4.5834 | ||||||||||||
Romanian Leu |
4.9305 | 4.9211 | 4.9478 | 4.9488 | ||||||||||||
Indian Rupee |
82.7290 | 87.4386 | 88.2936 | 84.5345 | ||||||||||||
Turkish Lira |
17.4047 | 10.4938 | 19.9784 | 15.1017 |
Aegon Annual Report on Form 20-F 2022 | 119 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
The operating result from Spain & Portugal was EUR 78 million in 2022, compared with EUR 75 million in 2021. This was mainly driven by business growth and favorable claims experience, which more than offset the impact from the sale of Aegon’s 50% stake in the joint venture with Liberbank. |
◆ |
The operating result from China increased by 8% compared with 2021 to EUR 26 million in 2022, reflecting a growing portfolio. |
◆ |
The operating result from Brazil improved by EUR 29 million to EUR 27 million, reflecting business growth, a normalization of COVID-19 mortality claims experience, and the benefit from an increase in Aegon’s economic ownership in the business. |
◆ |
TLB, Aegon’s high-net-worth business, recorded an operating result of EUR 60 million in 2022, a decrease of EUR 17 million compared with 2021. This was mostly the result of a reinsurance treaty with Transamerica that commenced retrospectively on July 1, 2022. Adjusting for this reinsurance treaty, the operating result from TLB increased supported by higher surrender gains and an improved investment margin. |
◆ |
For the Others segment, the result increased from a loss of EUR 31 million in 2021 to a loss of EUR 24 million in 2022. This was largely driven by an improvement in the operating result of India as a result of a normalization of COVID-19 mortality claims experience. |
120 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations – International | ||||
◆ |
New life sales from Spain & Portugal increased by EUR 8 million compared with 2021 to EUR 56 million in 2022, mainly due to sales growth in the bancassurance channel. |
◆ |
New life sales from Aegon’s joint venture in China decreased by EUR 3 million compared with 2021 to EUR 87 million in 2022 reflecting COVID-19 related sales challenges. |
◆ |
For TLB, new life sales decreased by EUR 6 million compared with 2021 to EUR 5 million in 2022 driven by COVID-19 related sales challenges. |
◆ |
In Brazil, new life sales increased by EUR 28 million to EUR 105 million, driven by business growth and increased business ownership. |
Aegon Annual Report on Form 20-F 2022 121 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Amounts in EUR millions |
2022 |
2021 | % | |||||||||||||||
Operating result after tax |
130 |
181 |
(28) | |||||||||||||||
Tax on operating result |
62 | 72 | (13) | |||||||||||||||
Operating result |
||||||||||||||||||
Global Platforms |
51 | 54 | (6) | |||||||||||||||
Strategic Partnerships |
142 | 199 | (29) | |||||||||||||||
Operating result |
193 |
253 |
(24) | |||||||||||||||
Fair value items |
(3 | ) | (1 | ) | n.m. | |||||||||||||
Realized gains / (losses) on investments |
- | 2 | n.m. | |||||||||||||||
Net impairments |
- | (1 | ) | n.m. | ||||||||||||||
Non-operating items |
(3 |
) |
- |
n.m. | ||||||||||||||
Other income / (charges) |
(19 | ) | (18 | ) | (4) | |||||||||||||
Result before tax (excluding income tax from certain proportionately consolidated joint ventures and associates) |
171 |
235 |
(27) | |||||||||||||||
Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
48 | 57 | (16) | |||||||||||||||
Income tax |
(67 | ) | (65 | ) | (4) | |||||||||||||
Of which Income tax from certain proportionately consolidated joint ventures and associates included in result before tax |
(48 | ) | (57 | ) | 16 | |||||||||||||
Net result |
104 |
170 |
(39) | |||||||||||||||
Management fees |
591 | 602 | (2) | |||||||||||||||
Performance fees |
17 | 112 | (85) | |||||||||||||||
Other |
89 | 75 | 19 | |||||||||||||||
Total revenue 1) |
697 |
788 |
(12) | |||||||||||||||
Global Platforms |
429 | 430 | - | |||||||||||||||
Strategic Partnerships |
268 | 359 | (25) | |||||||||||||||
Total revenue 1) |
697 |
788 |
(12) | |||||||||||||||
Operating expenses |
547 | 552 | (1) | |||||||||||||||
Addressable expenses 2) |
372 | 391 | (5) | |||||||||||||||
Operating Margin - Global Platforms only |
11.9% | 12.6% |
1 |
Net fees and commissions |
2 |
Addressable expenses are reported at constant currency at the FY 2022 weighted average foreign exchange rate. |
Gross deposits (on and off balance) |
||||||||||||||||||
Amounts in EUR millions |
2022 |
2021 | % | |||||||||||||||
General Account |
16,544 | 16,190 | 2 | |||||||||||||||
Affiliate |
10,509 | 10,569 | (1) | |||||||||||||||
Third Party |
12,708 | 26,086 | (51) | |||||||||||||||
Global Platforms |
39,761 | 52,845 | (25) | |||||||||||||||
Strategic Partnerships |
114,379 | 131,204 | (13) | |||||||||||||||
Total gross deposits |
154,141 |
184,049 |
(16) |
122 |
Aegon Annual Report on Form 20-F 2022 |
Results of operations – Aegon Asset Management | ||||
Amounts in EUR millions |
2022 |
2021 | % | |||||||||||||||
General Account |
(9,742 | ) | (5,489 | ) | (77) | |||||||||||||
Affiliate |
(2,061 | ) | (2,431 | ) | 15 | |||||||||||||
Third Party |
(3,798 | ) | 5,049 | n.m. | ||||||||||||||
Global Platforms |
(15,601 | ) | (2,870 | ) | n.m. | |||||||||||||
Strategic Partnerships |
3,569 | 7,835 | (54) | |||||||||||||||
Total net deposits / (outflows) |
(12,032 |
) |
4,965 |
n.m. |
Weighted average rate | Closing rate as of | |||||||||||||||
Per 1 EUR |
2022 |
2021 | December 31, 2022 |
December 31, 2021 | ||||||||||||
USD |
1.0534 | 1.1831 | 1.0673 | 1.1372 | ||||||||||||
Pound Sterling |
0.8528 | 0.8598 | 0.8872 | 0.8396 | ||||||||||||
Hungarian Florint |
391.1604 | 358.4993 | 400.4500 | 368.5650 | ||||||||||||
Chinese Yuan Renminbi |
7.0810 | 7.6313 | 7.4192 | 7.2478 |
Aegon Annual Report on Form 20-F 2022 123 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
The operating result from Strategic Partnerships decreased 29% compared with 2021 to EUR 142 million in 2022. This was mainly driven by lower performance fees net of performance-based compensation which decreased by EUR 95 million to EUR 11 million in 2022 compared to 2021 |
◆ |
The operating result from Global Platforms decreased from EUR 54 million in 2021 to EUR 51 million in 2022. Management fees were negatively impacted by a reduction in asset balances due to adverse market conditions and outflows, and were only partly offset by lower expenses. Both revenues and expenses were impacted by the strengthening of the US dollar during 2022, with a limited positive net impact on the operating result. |
124 |
Aegon Annual Report on Form 20-F 2022 |
Exchange rates | ||||
2022 |
2021 |
2020 |
||||||||||||||||||||||||||||||||||||
EUR |
USD |
GBP |
EUR | USD | GBP | EUR | USD | GBP | ||||||||||||||||||||||||||||||
1 |
EUR |
- |
1.0673 |
0.8872 |
- |
1.1372 |
0.8396 |
- |
1.2236 |
0.8951 |
||||||||||||||||||||||||||||
1 |
USD |
0.9369 |
- |
0.8313 |
0.8794 |
- |
0.7383 |
0.8173 |
- |
0.7315 |
||||||||||||||||||||||||||||
1 |
GBP |
1.1271 |
1.2030 |
- |
1.1910 |
1.3545 |
- |
1.1172 |
1.3670 |
- |
2022 |
2021 | 2020 | ||||||||||||||||||||||||||||||||||||
EUR |
USD |
GBP |
EUR | USD | GBP | EUR | USD | GBP | ||||||||||||||||||||||||||||||
1 |
EUR |
- |
1.0534 |
0.8528 |
- |
1.1831 |
0.8598 |
- |
1.1416 |
0.8892 |
||||||||||||||||||||||||||||
1 |
USD |
0.9493 |
- |
0.8096 |
0.8452 |
- |
0.7267 |
0.8760 |
- |
0.7789 |
||||||||||||||||||||||||||||
1 |
GBP |
1.1726 |
1.2352 |
- |
1.1631 |
1.3760 |
- |
1.1246 |
1.2839 |
- |
Aegon Annual Report on Form 20-F 2022 125 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Amounts in EUR millions (except per share data) |
Note |
2022 |
2021 1) |
2020 1) |
||||||||||||
Continuing operations |
||||||||||||||||
Premium income |
6 |
|||||||||||||||
Investment income |
7 |
|||||||||||||||
Fee and commission income |
8 |
|||||||||||||||
Other revenues |
||||||||||||||||
Total revenues |
||||||||||||||||
Income from reinsurance ceded |
9 |
|||||||||||||||
Results from financial transactions |
10 |
( |
) | |||||||||||||
Other income |
11 |
|||||||||||||||
Total income |
( |
) |
||||||||||||||
Premiums paid to reinsurers |
6 |
|||||||||||||||
Policyholder claims and benefits |
12 |
( |
) | |||||||||||||
Profit sharing and rebates |
13 |
|||||||||||||||
Commissions and expenses |
14 |
|||||||||||||||
Impairment charges / (reversals) |
15 |
|||||||||||||||
Interest charges and related fees |
16 |
|||||||||||||||
Other charges |
17 |
( |
) | |||||||||||||
Total charges |
( |
) |
||||||||||||||
Result before share in profit / (loss) of joint ventures,associates and tax |
( |
) | ( |
) | ||||||||||||
Share in profit / (loss) of joint ventures |
25 |
|||||||||||||||
Share in profit / (loss) of associates |
25 |
( |
) | ( |
) | |||||||||||
Result before tax from continuing operations |
( |
) | ( |
) | ||||||||||||
Income tax (expense) / benefit |
18 |
( |
) | |||||||||||||
Net result from continuing operations |
( |
) |
( |
) | ||||||||||||
Discontinued operations |
||||||||||||||||
Net result from discontinued operations |
51 |
( |
) |
|||||||||||||
Net result from continuing and discontinued operations |
( |
) |
( |
) | ||||||||||||
Net result attributable to: |
||||||||||||||||
Owners of Aegon N.V. |
( |
) | ( |
) | ||||||||||||
Non-controlling interests |
||||||||||||||||
Earnings per share (EUR per share) |
19 |
|||||||||||||||
Basic earnings per common share |
( |
) | ( |
) | ||||||||||||
Basic earnings per common share B |
( |
) | ||||||||||||||
Diluted earnings per common share |
( |
) | ( |
) | ||||||||||||
Diluted earnings per common share B |
( |
) | ||||||||||||||
Basic earnings per common share from continuing operations |
( |
) | ( |
) | ||||||||||||
Basic earnings per common share B from continuing operations |
( |
) | ( |
) | ||||||||||||
Diluted earnings per common share from continuing operations |
( |
) | ( |
) | ||||||||||||
Diluted earnings per common share B from continuing operations |
( |
) | ( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
126 |
Aegon Annual Report on Form 20-F 2022 |
Consolidated financial statements of Aegon N.V. | ||||
Amounts in EUR millions |
2022 |
2021 1) |
2020 1) |
|||||||||
Net result from continuing and discontinued operations |
( |
) |
( |
) | ||||||||
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 |
( |
) | ( |
) | ||||||||
Income tax relating to items that will not be reclassified |
( |
) | ( |
) | ||||||||
Discontinued operations that will not be reclassified |
( |
) | ||||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||
Gains / (losses) on revaluation of available-for-sale investments |
( |
) | ( |
) | ||||||||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments |
( |
) | ||||||||||
Changes in cash flow hedging reserve |
( |
) | ( |
) | ( |
) | ||||||
Movement in foreign currency translation and net foreign investment hedging reserves |
( |
) | ||||||||||
Equity movements of joint ventures |
( |
) | ||||||||||
Equity movements of associates |
( |
) | ||||||||||
Disposal of group assets |
( |
) | ||||||||||
Income tax relating to items that may be reclassified |
( |
) | ||||||||||
Discontinued operations that may be reclassified |
( |
) | ( |
) | ||||||||
Other |
||||||||||||
Total other comprehensive income / (loss) |
( |
) |
||||||||||
Total comprehensive income / (loss) |
( |
) |
||||||||||
Total comprehensive income/ (loss) attributable to: |
||||||||||||
Owners of Aegon N.V. |
( |
) | ||||||||||
Non-controlling interests |
1 | Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 127 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Amounts in EUR millions |
Note |
2022 |
2021 | |||||||||
Assets |
||||||||||||
Cash and cash equivalents |
21 |
|||||||||||
Assets held for sale |
51 |
|||||||||||
Investments |
22 |
|||||||||||
Investments for account of policyholders |
23 |
|||||||||||
Derivatives |
24 |
|||||||||||
Investments in joint ventures |
25 |
|||||||||||
Investments in associates |
25 |
|||||||||||
Reinsurance assets |
26 |
|||||||||||
Defined benefit assets |
39 |
|||||||||||
Deferred tax assets |
40 |
|||||||||||
Deferred expenses |
27 |
|||||||||||
Other assets and receivables |
28 |
|||||||||||
Intangible assets |
29 |
|||||||||||
Total assets |
||||||||||||
Equity and liabilities |
||||||||||||
Shareholders’ equity |
30 |
|||||||||||
Other equity instruments |
31 |
|||||||||||
Issued capital and reserves attributable to owners of Aegon N.V. |
||||||||||||
Non-controlling interests |
||||||||||||
Group equity |
||||||||||||
Subordinated borrowings |
32 |
|||||||||||
Trust pass-through securities |
33 |
|||||||||||
Insurance contracts |
34 |
|||||||||||
Insurance contracts for account of policyholders |
34 |
|||||||||||
Investment contracts |
35 |
|||||||||||
Investment contracts for account of policyholders |
35 |
|||||||||||
Derivatives |
24 |
|||||||||||
Borrowings |
37 |
|||||||||||
Provisions |
38 |
|||||||||||
Defined benefit liabilities |
39 |
|||||||||||
Deferred gains |
||||||||||||
Deferred tax liabilities |
40 |
|||||||||||
Liabilities held for sale |
51 |
|||||||||||
Other liabilities |
41 |
|||||||||||
Accruals |
42 |
|||||||||||
Total liabilities |
||||||||||||
Total equity and liabilities |
128 |
Aegon Annual Report on Form 20-F 2022 |
Consolidated financial statements of Aegon N.V. | ||||
Amounts in EUR millions |
Note |
Share capital |
Retained earnings |
Revaluation reserves |
Remeasurement of defined benefit plans |
Other reserves |
Other equity instruments |
Reserve of discontinued opera tions held for sale |
Issued capital and reserves 1) |
Non- control- ling inter- ests |
Total |
|||||||||||||||||||||||||||||||||
At January 1, 2022 |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
Net result recognized in the income statement |
- | ( |
) | - | - | - | - | - | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Other comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||
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 |
- | - | - | ( |
) | - | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified |
- | - | - | ( |
) | - | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||||
Discontinued operations that will not be reclassified 2) |
- | - | - | - | - | ( |
) | - | ||||||||||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on revaluation of available-for-sale |
- | - | ( |
) | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve |
- | - | ( |
) | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves |
- | - | ( |
) | - | - | ||||||||||||||||||||||||||||||||||||||
Equity movements of joint ventures |
- | - | - | - | ( |
) | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||||
Equity movements of associates |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Disposal of group assets |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified |
- | - | - | ( |
) | - | - | - | ||||||||||||||||||||||||||||||||||||
Discontinued operations that may be reclassified 2) |
- | - | ( |
) | - | ( |
) | - | ( |
) | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||
Other |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) |
- |
( |
) |
- |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2022 |
- |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | |||||||||||||||||||||||||||||||||
Shares issued |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Shares withdrawn |
( |
) | - | - | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares |
- | ( |
) | - | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||||
Issuance and redemption of other equity instruments |
- | ( |
) | - | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||||
Redemption other equity instruments |
- | - | - | - | ( |
) | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||||||
Dividends paid on common shares |
( |
) | ( |
) | - | - | - | - | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||||
Dividend withholding tax reduction |
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Coupons on perpetual securities |
- | ( |
) | - | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||||
Incentive plans |
- | ( |
) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Change in ownership non-controlling interest |
- | - | - | - | - | - | - | - | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
At December 31, 2022 |
30, 31 |
( |
) |
( |
) |
( |
) |
1 |
2 |
Aegon Annual Report on Form 20-F 2022 129 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Amounts in EUR millions |
Note |
Share capital |
Retained earnings |
Revaluation reserves |
Remeasurement of defined benefit plans |
Other reserves |
Other equity instruments |
Issued capital and reserves 1) |
Non-controlling interests 2) |
Total | ||||||||||||||||||||||||||||||
At January 1, 2021 |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Net result recognized in the income statement |
- | - | - | - | - | |||||||||||||||||||||||||||||||||||
Other comprehensive income: |
||||||||||||||||||||||||||||||||||||||||
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 |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified |
- | - | ( |
) | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on revaluation of available-for-sale |
- | - | ( |
) | - | - | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale |
- | - | ( |
) | - | - | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||
Changes in cash flow hedging reserve |
- | - | ( |
) | - | - | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves |
- | - | ( |
) | - | |||||||||||||||||||||||||||||||||||
Equity movements of joint ventures |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Equity movements of associates |
- | - | - | - | ( |
) | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||
Disposal of group assets |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Income tax relating to items that may be reclassified |
- | - | - | - | - | |||||||||||||||||||||||||||||||||||
Other |
- | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) |
- |
( |
) |
- |
||||||||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2021 |
( |
) |
||||||||||||||||||||||||||||||||||||||
Shares issued |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares |
- | ( |
) | - | - | - | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||
Issuance and redemption of other equity instruments |
- | - | - | - | - | ( |
) | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||
Dividends paid on common shares |
( |
) | ( |
) | - | - | - | - | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Dividend withholding tax reduction |
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Coupons on perpetual securities |
- | ( |
) | - | - | - | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||
Incentive plans |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Change in ownership non-controlling interest |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
At December 31, 2021 |
30,31 |
( |
) |
1 |
Issued capital and reserves attributable to owners of Aegon N.V. |
2 |
130 |
Aegon Annual Report on Form 20-F 2022 |
Consolidated financial statements of Aegon N.V. | ||||
Amounts in EUR millions | Note |
Share capital |
Retained earnings |
Revaluation reserves |
Remea- surement of defined benefit plans |
Other reserves |
Other equity instruments |
Issued capital and reserves 1) |
Non-controlling interests |
Total | ||||||||||||||||||||||||||||||
At January 1, 2020 |
( |
) | ||||||||||||||||||||||||||||||||||||||
Net result recognized in the income statement |
- | ( |
) | - | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Other comprehensive income: |
||||||||||||||||||||||||||||||||||||||||
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 |
- | - | - | ( |
) | - | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified |
- | - | ( |
) | - | - | - | |||||||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||||||||||||||||||||||||
Gains / (losses) on revaluation of available-for-sale |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Changes in cash flow hedging reserve |
- | - | ( |
) | - | - | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||
Movements in foreign currency translation and net foreign investment hedging reserves |
- | - | ( |
) | ( |
) | - | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||
Equity movements of joint ventures |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Equity movements of associates |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Disposal of group assets |
- | - | ( |
) | - | ( |
) | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||
Income tax relating to items that may be reclassified |
- | - | ( |
) | - | ( |
) | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||
Other |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
Total other comprehensive income / (loss) |
- |
( |
) |
( |
) |
- |
( |
) |
||||||||||||||||||||||||||||||||
Total comprehensive income / (loss) for 2020 |
- |
( |
) |
( |
) |
( |
) |
- |
||||||||||||||||||||||||||||||||
Shares issued |
( |
) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Issuance and redemption of other equity instruments |
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Dividends paid on common shares |
( |
) | ( |
) | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||||||||||||||||
Dividend withholding tax reduction |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Coupons on perpetual securities |
- | ( |
) | - | - | - | - | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||
Incentive plans |
- | - | - | - | ( |
) | - | |||||||||||||||||||||||||||||||||
Change in ownership non-controlling interest |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
At December 31, 2020 |
30, 31 |
( |
) |
( |
) |
1 |
Issued capital and reserves attributable to owners of Aegon N.V. |
Aegon Annual Report on Form 20-F 2022 131 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Amounts in EUR millions |
Note |
2022 |
2021 | 2020 | ||||||||||||
Result before tax from continuing operations |
( |
) |
( |
) | ||||||||||||
Result before tax from discontinued operations |
51 |
|||||||||||||||
Impairment loss on measurement of disposal group |
51 |
( |
) | |||||||||||||
Result before tax from continuing operations and discontinued operations |
( |
) |
( |
) | ||||||||||||
Results from financial transactions |
( |
) | ( |
) | ||||||||||||
Amortization and depreciation |
||||||||||||||||
Impairment losses |
||||||||||||||||
Income from joint ventures |
( |
) | ( |
) | ( |
) | ||||||||||
Income from associates |
( |
) | ( |
) | ( |
) | ||||||||||
Release of cash flow hedging reserve |
( |
) | ( |
) | ( |
) | ||||||||||
Other |
||||||||||||||||
Adjustments of non-cash items |
( |
) |
( |
) | ||||||||||||
Insurance and investment liabilities |
( |
) | ( |
) | ||||||||||||
Insurance and investment liabilities for account of policyholders |
( |
) | ||||||||||||||
Accrued expenses and other liabilities |
( |
) | ( |
) | ||||||||||||
Accrued income and prepayments |
( |
) | ( |
) | ( |
) | ||||||||||
Changes in accruals |
( |
|||||||||||||||
Purchase of investments (other than money market investments) |
( |
) | ( |
( |
||||||||||||
Purchase of derivatives |
( |
) | ( |
) | ||||||||||||
Disposal of investments (other than money market investments) |
||||||||||||||||
Disposal of derivatives |
( |
) | ||||||||||||||
Net purchase of investments for account of policyholders |
||||||||||||||||
Net change in cash collateral |
( |
) | ( |
) | ||||||||||||
Net purchase of money market investments |
( |
) | ( |
) | ||||||||||||
Cash flow movements on operating items not reflected in income |
||||||||||||||||
Tax (paid)/ received |
( |
) | ( |
) | ||||||||||||
Other |
( |
) | ||||||||||||||
Net cash flows from operating activities |
21 |
( |
) |
( |
) | |||||||||||
Purchase of individual intangible assets (other than VOBA and future servicing rights) |
( |
) | ( |
) | ( |
) | ||||||||||
Purchase of equipment and real estate for own use |
( |
) | ( |
) | ( |
) | ||||||||||
Acquisition of subsidiaries, net of cash |
( |
) | ( |
) | ||||||||||||
Acquisition/capital contributions joint ventures and associates |
( |
) | ( |
) | ( |
) | ||||||||||
Disposal of intangible asset |
||||||||||||||||
Disposal of equipment |
||||||||||||||||
Disposal of subsidiaries and businesses, net of cash |
||||||||||||||||
Disposal joint ventures and associates |
||||||||||||||||
Dividend received from joint ventures and associates |
||||||||||||||||
Other |
( |
) | ||||||||||||||
Net cash flows from investing activities |
21 |
( |
) |
( |
) | |||||||||||
Purchase of treasury shares |
( |
) | ( |
) | ( |
) | ||||||||||
Proceeds from TRUPS 1) , Subordinated borrowings and borrowings |
||||||||||||||||
Repayment of perpetuals |
( |
) | ( |
) | ||||||||||||
Repayment of share capital |
||||||||||||||||
Repayment of TRUPS 1) , Subordinated borrowings and borrowings |
( |
) | ( |
) | ( |
) | ||||||||||
Dividends paid |
( |
) | ( |
) | ( |
) | ||||||||||
Coupons on perpetual securities |
( |
) | ( |
) | ( |
) | ||||||||||
Payment of Right-of-use Assets |
( |
) | ( |
) | ( |
) | ||||||||||
Change in ownership non-controlling interests |
( |
) | ||||||||||||||
Other |
( |
) | ||||||||||||||
Net cash flows from financing activities |
21 |
( |
) |
( |
) | |||||||||||
Net increase / (decrease) in cash and cash equivalents 2) |
( |
) |
( |
) | ||||||||||||
Net cash and cash equivalents at the beginning of the year |
||||||||||||||||
Effects of changes in exchange rate |
( |
) | ||||||||||||||
Net cash and cash equivalents at the end of the year |
21 |
1 |
|
2 |
|
132 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 1 | ||||
Aegon Annual Report on Form 20-F 2022 133 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Shareholders’ equity | Net result | |||||||||||||||||||||||
2022 |
2021 | 2020 | 2022 |
2021 | 2020 | |||||||||||||||||||
In accordance with IFRS |
( |
) |
( |
) | ||||||||||||||||||||
Adjustment of EU ‘IAS 39’ carve-out |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Tax effect of the adjustment |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Effect of the adjustment after tax |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
In accordance with EU-IFRS |
( |
) |
Accounting standard/ amendment/ interpretation |
IASB effective date |
Impact for Aegon |
||||||
Reference to the Conceptual Framework (Amendments to IFRS 3) |
January 1, 2022 | Not material | ||||||
Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) |
January 1, 2022 | Not material | ||||||
Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) |
January 1, 2022 | Not material | ||||||
Annual Improvements to IFRS Standards 2018–2020 |
January 1, 2022 | Not material | ||||||
COVID-19- Related Rent Concessions beyond 30 June 2021 (Amendments to IFRS 16) |
April 1, 2021 | Not material |
IASB effective |
Early adopted by |
Impact for Aegon |
||||||||||
Accounting standard/ amendment/ interpretation |
date |
Aegon |
||||||||||
See below for | ||||||||||||
IFRS 17 Insurance contracts |
January 1, 2023 | No | comments | |||||||||
Initial Application of IFRS 17 and IFRS 9 - Comparative Information (Amendments to IFRS 17) |
January 1, 2023 | No | See below for comments |
| ||||||||
See below for | ||||||||||||
IFRS 9 Financial instruments |
January 1, 2018 1) |
No | comments | |||||||||
See below for | ||||||||||||
Prepayment Features with Negative Compensation (Amendments to IFRS 9) |
January 1, 2019 1) |
No | comments | |||||||||
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) |
January 1, 2024 | No | Not material | |||||||||
Classification of Liabilities as Current or Non-current (Amendments to IAS 1) |
January 1, 2024 | No | Not material | |||||||||
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) |
January 1, 2023 | No | Not material | |||||||||
Definition of Accounting Estimates (Amendments to IAS 8) |
January 1, 2023 | No | Not material | |||||||||
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) |
January 1, 2023 | No | Not material |
1 |
The amendments to IFRS 4, Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts, issued in September 2016, allow entities that issue insurance contracts within the scope of IFRS 4 to defer the implementation of IFRS 9 (and linked amendments ‘Amendments to IFRS 9 Financial instruments on prepayment features with negative compensation’). The amendments to IFRS 4 are further explained below. |
134 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 1 | ||||
Aegon Annual Report on Form 20-F 2022 135 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
Identifies, recognizes and measures each group of contracts as if IFRS 17 had always been applied; |
◆ |
Derecognizes previously reported balances that would not have existed if IFRS 17 had always been applied; and |
◆ |
Recognizes any resulting net difference in equity. |
◆ |
Aegon intends to apply risk mitigation to the group of contracts prospectively from the transition date, and |
◆ |
Prior to transition, Aegon used derivatives, other financial instruments classified as ‘fair value through profit or loss’ or reinsurance contracts to mitigate financial risk arising from that group of contracts. |
136 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
◆ |
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. |
◆ |
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. |
Aegon Annual Report on Form 20-F 2022 137 |
![]() |
About Aegon Governance and risk management Financial information Non-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 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. |
◆ |
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. |
138 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
◆ |
A financial instrument that is not credit-impaired on initial recognition is classified in ‘Stage 1’ and has its credit risk continuously monitored by the Group. |
◆ |
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. |
◆ |
If the financial instrument is credit-impaired, the financial instrument is then moved to ‘Stage 3’. |
Aegon Annual Report on Form 20-F 2022 139 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
DPAC and VOBA will no longer be recognized as separate assets; |
◆ |
Residential mortgages related to the insurance entities in the Netherlands will be 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 fulfill 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 the Netherlands and Aegon UK apply 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; |
◆ |
On top of the fulfillment value, a contractual service margin (CSM), reflecting unearned profits, is added to the insurance liabilities. |
In EUR billion |
Shareholders’ equity |
Revaluation reserves |
||||||
Balances as at January 1, 2022, as previously reported |
||||||||
Impact of the change in accounting policies (IFRS 9 and 17) |
( |
) | ( |
) | ||||
Restated balances as at January 1, 2022 |
( |
) |
◆ |
Greater than 90% of the total carrying value of all liabilities; or |
◆ |
Between 80% and 90% of the total carrying value of all its liabilities, and the insurer does not have significant activities unrelated to insurance. |
140 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
◆ |
SPPI: assets of which cash flows represent solely payments of principal and interest (SPPI) on an outstanding principal amount, excluding any financial assets that meet the definition of held for trading in IFRS 9, or that are managed and whose performance is evaluated on a fair value basis; and |
◆ |
Other: all financial assets other than those specified in SPPI: |
◆ |
with contractual terms that do not give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding; |
◆ |
that meet the definition of held for trading in IFRS 9; or |
◆ |
that are managed and whose performance are evaluated on a fair value basis. |
2022 1) |
2021 | |||||||||||||||||||||||
Change in |
||||||||||||||||||||||||
Fair value at |
fair value |
Fair value at | Change in fair | |||||||||||||||||||||
the end of |
during the |
the end of | value during | |||||||||||||||||||||
the reporting |
reporting |
the reporting | the reporting | |||||||||||||||||||||
Financial assets at fair value |
period |
period |
period | period | ||||||||||||||||||||
Shares 2) |
SPPI |
|||||||||||||||||||||||
Other |
( |
) | ||||||||||||||||||||||
Debt securities |
SPPI |
( |
) | ( |
) | |||||||||||||||||||
Other |
( |
) | ( |
) | ||||||||||||||||||||
Money Markets and other short-term investments |
SPPI |
( |
) | |||||||||||||||||||||
Other |
- | |||||||||||||||||||||||
Mortgage loans |
SPPI |
( |
) | ( |
) | |||||||||||||||||||
Other |
- | - | - | - | ||||||||||||||||||||
Private loans |
SPPI |
- | - | ( |
) | |||||||||||||||||||
Other |
( |
) | ( |
) | ||||||||||||||||||||
Deposits with financial institutions |
SPPI |
- | - | |||||||||||||||||||||
Other |
- | - | - | - | ||||||||||||||||||||
Policy loans |
SPPI |
- | - | |||||||||||||||||||||
Other |
- | ( |
) | |||||||||||||||||||||
Other financial assets |
SPPI |
- | - | - | - | |||||||||||||||||||
Other | ||||||||||||||||||||||||
At December 31 |
( |
) |
( |
) |
1 | 2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
2 | The SPPI-compliant shares include preferred equity instruments. |
Aegon Annual Report on Form 20-F 2022 141 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
SPPI compliant financial assets at carrying value |
AAA | AA | A | BBB | BB | B | CCC or lower |
Not Rated |
Total | |||||||||||||||||||||||||||
2022 1) |
||||||||||||||||||||||||||||||||||||
Shares – Carried at fair value |
- | - | - | - | - | |||||||||||||||||||||||||||||||
Debt securities – Carried at fair value |
- | |||||||||||||||||||||||||||||||||||
Money market and other short-term investments- carried at fair value |
- | - | ||||||||||||||||||||||||||||||||||
Mortgage loans– Carried at amortized cost |
- | - | ||||||||||||||||||||||||||||||||||
Private loans – Carried at amortized cost |
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Other financial assets – Carried at fair value |
- | - | - | - | - | |||||||||||||||||||||||||||||||
At December 31 |
||||||||||||||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||||||||||
Shares – Carried at fair value |
- | - | - | - | - | |||||||||||||||||||||||||||||||
Debt securities – Carried at fair value |
||||||||||||||||||||||||||||||||||||
Money market and other short-term investments- carried at fair value |
- | - | - | - | ||||||||||||||||||||||||||||||||
Mortgage loans– Carried at amortized cost |
- | - | ||||||||||||||||||||||||||||||||||
Private loans – Carried at amortized cost |
- | - | ||||||||||||||||||||||||||||||||||
Other financial assets – Carried at fair value |
- | - | - | - | ||||||||||||||||||||||||||||||||
At December 31 |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
2022 1) |
2021 | |||||||||||||||
SPPI compliant financial assets rated BB or below |
Carrying amount |
Fair value |
Carrying amount | Fair value | ||||||||||||
Shares – Carried at fair value |
||||||||||||||||
Debt securities – Carried at fair value |
||||||||||||||||
Money market and other short-term investments – Carried at fair value |
||||||||||||||||
Mortgage loans – Carried at amortized cost |
||||||||||||||||
Private loans – Carried at amortized cost |
||||||||||||||||
Deposits with financial institutions – Carried at amortized cost |
||||||||||||||||
Other financial assets – Carried at fair value |
||||||||||||||||
At December 31 |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
1 |
Mortgage loans with no low credit risk are defined as being more than 90 days past due, in line with regulatory guidelines. |
142 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
2022 1) |
2021 | |||||||||||||||||||
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 | |||||||||||||||||||
Other | ||||||||||||||||||||
Money Markets and other short-term investments |
SPPI | |||||||||||||||||||
Other | ||||||||||||||||||||
Other financial assets |
SPPI | |||||||||||||||||||
Other | ( |
) | ||||||||||||||||||
At December 31 |
( |
) |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
SPPI compliant financial assets at carrying value |
AAA |
AA |
A |
BBB |
BB |
B |
CCC or lower |
Not Rated |
Total |
|||||||||||||||||||||||||||
2022 1) |
||||||||||||||||||||||||||||||||||||
Debt securities – Carried at fair value |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||
At December 31 |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||||||||||
Debt securities – Carried at fair value |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||
At December 31 |
- |
- |
- |
- |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
◆ |
Aegon Bank N.V. |
◆ |
Aegon Hypotheken B.V. |
◆ |
Aegon Asset Management Holding B.V. |
◆ |
Amvest Vastgoed B.V. |
◆ |
Amvest Development Fund B.V. |
◆ |
Amvest Living & Care Fund |
◆ |
Amvest Residential Core Fund |
Aegon Annual Report on Form 20-F 2022 | 143 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-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 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). |
144 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
Aegon Annual Report on Form 20-F 2022 | 145 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
146 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
Aegon Annual Report on Form 20-F 2022 | 147 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
148 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
Aegon Annual Report on Form 20-F 2022 | 149 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
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. |
◆ |
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. |
150 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
Aegon Annual Report on Form 20-F 2022 | 151 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
152 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
Aegon Annual Report on Form 20-F 2022 | 153 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
154 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
Aegon Annual Report on Form 20-F 2022 | 155 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
156 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
Aegon Annual Report on Form 20-F 2022 | 157 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
158 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
Aegon Annual Report on Form 20-F 2022 | 159 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
160 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
◆ |
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. |
Aegon Annual Report on Form 20-F 2022 | 161 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
162 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 2 | ||||
Aegon Annual Report on Form 20-F 2022 | 163 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
164 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 3 | ||||
Aegon Annual Report on Form 20-F 2022 | 165 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
166 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 3 | ||||
2022 |
2021 | |||||||
Estimated approximate effect |
DPAC /VOBA |
DPAC /VOBA | ||||||
( |
) | ( |
) |
Aegon Annual Report on Form 20-F 2022 | 167 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 |
2021 | |||||||
Estimated approximate effect |
Net Result |
Net Result | ||||||
( |
) | ( |
) | |||||
2022 |
2021 | |||||||
Estimated approximate effect |
GPV |
GPV | ||||||
( |
) | ( |
) | |||||
( |
) | ( |
) |
◆ |
In the principal market for the asset or liability; or |
◆ |
In the absence of a principal market, in the most advantageous market for the asset or liability. |
◆ |
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. |
168 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
Aegon Annual Report on Form 20-F 2022 169 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
170 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
◆ |
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. |
◆ |
Credit risk |
◆ |
Equity market risk and other investment risks |
◆ |
Interest rate risk |
◆ |
Currency exchange risk |
◆ |
Liquidity risk |
Aegon Annual Report on Form 20-F 2022 171 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
2022 1) |
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 - carried at fair value |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Money market and other short-term investments - carried at fair value |
- | - | - | - | - | |||||||||||||||||||||||||||||||||||
Mortgage loans - carried at amortized cost |
- | - | - | |||||||||||||||||||||||||||||||||||||
Private loans - carried at amortized cost |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Other loans - carried at amortized cost |
- | - | - | - | - | |||||||||||||||||||||||||||||||||||
Other financial assets - carried at fair value |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Derivatives |
- | - | - | |||||||||||||||||||||||||||||||||||||
Reinsurance assets |
- | - | - | - | - | |||||||||||||||||||||||||||||||||||
At December 31 |
1 | 2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
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 overcol- lateraliza- tion) |
Net exposure |
||||||||||||||||||||||||||||||
Debt securities - carried at fair value |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Money market and other short-term investments - carried at fair value |
- | - | - | - | - | |||||||||||||||||||||||||||||||||||
Mortgage loans - carried at amortized cost |
- | - | - | |||||||||||||||||||||||||||||||||||||
Private loans - carried at amortized cost |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Other loans - carried at amortized cost |
- | - | - | - | - | |||||||||||||||||||||||||||||||||||
Other financial assets - carried at fair value |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Derivatives |
- | - | - | |||||||||||||||||||||||||||||||||||||
Reinsurance assets |
- | - | - | - | - | |||||||||||||||||||||||||||||||||||
At December 31 |
172 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
Aegon Annual Report on Form 20-F 2022 173 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Aegon group level long-term counterparty exposure limits are as follows: |
Group limits per credit rating |
||||||||||||||||
Amounts in EUR million |
2022 |
2021 | ||||||||||||||
AAA |
|
|
||||||||||||||
AA |
||||||||||||||||
A |
||||||||||||||||
BBB |
||||||||||||||||
BB |
||||||||||||||||
B |
||||||||||||||||
CCC or lower |
174 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
Americas |
United Kingdom |
International |
||||||||||||||||||||||
Credit rating general account investments,excluding reinsurance assets 2022 |
Amortized cost |
Fair value |
Amortized cost |
Fair value |
Amortized cost |
Fair value |
||||||||||||||||||
AAA |
- | - | ||||||||||||||||||||||
AA |
- | - | ||||||||||||||||||||||
A |
- | |||||||||||||||||||||||
BBB |
- | ( |
) | |||||||||||||||||||||
BB |
- | - | ||||||||||||||||||||||
B |
- | - | - | - | ||||||||||||||||||||
CCC or lower |
- | - | - | - | ||||||||||||||||||||
Assets not rated |
- | |||||||||||||||||||||||
Total |
- |
|||||||||||||||||||||||
Past due and / or impaired assets |
- | - | - | - | ||||||||||||||||||||
At December 31 |
- |
Asset Management |
Total 2022 1) 2) |
|||||||||||||||||||
Credit rating general account investments, excluding reinsurance assets 2022 |
Amortized cost |
Fair value |
Amortized cost |
Fair value |
Total carrying value |
|||||||||||||||
AAA |
- | |||||||||||||||||||
AA |
- | - | ||||||||||||||||||
A |
- | - | ||||||||||||||||||
BBB |
- | - | ||||||||||||||||||
BB |
- | - | ||||||||||||||||||
B |
- | - | - | |||||||||||||||||
CCC or lower |
- | - | - | |||||||||||||||||
Assets not rated |
- | |||||||||||||||||||
Total |
- |
|||||||||||||||||||
Past due and / or impaired assets |
- | - | - | |||||||||||||||||
At December 31 |
- |
1 |
Includes investments of Holding and other activities. |
2 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Americas | The Netherlands | United Kingdom | International | |||||||||||||||||||||||||||||
Credit rating general account investments, excluding reinsurance assets 2021 |
Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | ||||||||||||||||||||||||
AAA |
- | - | ||||||||||||||||||||||||||||||
AA |
- | - | ||||||||||||||||||||||||||||||
A |
- | |||||||||||||||||||||||||||||||
BBB |
- | ( |
) | |||||||||||||||||||||||||||||
BB |
- | - | ||||||||||||||||||||||||||||||
B |
- | - | - | - | ||||||||||||||||||||||||||||
CCC or lower |
- | - | - | - | - | |||||||||||||||||||||||||||
Assets not rated |
- | |||||||||||||||||||||||||||||||
Total |
- |
|||||||||||||||||||||||||||||||
Past due and / or impaired assets |
- | - | - | |||||||||||||||||||||||||||||
At December 31 |
- |
Aegon Annual Report on Form 20-F 2022 175 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Asset Management |
Total 2021 1) |
|||||||||||||||||||
Credit rating general account investments, excluding reinsurance assets 2021 |
Amortized cost | Fair value | Amortized cost | Fair value | Total carrying value |
|||||||||||||||
AAA |
- | |||||||||||||||||||
AA |
- | - | ||||||||||||||||||
A |
- | - | ||||||||||||||||||
BBB |
- | - | ||||||||||||||||||
BB |
- | - | ||||||||||||||||||
B |
- | - | ||||||||||||||||||
CCC or lower |
- | - | - | |||||||||||||||||
Assets not rated |
- | |||||||||||||||||||
Total |
- |
|||||||||||||||||||
Past due and / or impaired assets |
- | - | ||||||||||||||||||
At December 31 |
- |
1 |
Includes investments of Holding and other activities. |
Carrying value 2022 1) |
Carrying value 2021 |
|||||
AAA |
- | - | ||||
AA |
||||||
A |
||||||
Below A |
||||||
Not rated |
||||||
At December 31 |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Credit risk concentrations – debt securities and money market investments 2022 |
Americas |
United Kingdom |
International |
Asset Management |
Total 2022 1) |
Of which past due and / or impaired assets |
||||||||||||||||||
Residential mortgage-backed securities (RMBSs) |
- | - | ||||||||||||||||||||||
Commercial mortgage-backed securities (CMBSs) |
- | |||||||||||||||||||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans |
- | - | ||||||||||||||||||||||
ABSs - Other |
||||||||||||||||||||||||
Financial - Banking |
- | |||||||||||||||||||||||
Financial - Other |
||||||||||||||||||||||||
Capital goods and other industry |
- | |||||||||||||||||||||||
Communications & Technology |
- | |||||||||||||||||||||||
Consumer cyclical |
- | |||||||||||||||||||||||
Consumer non-cyclical |
- | |||||||||||||||||||||||
Energy |
- | |||||||||||||||||||||||
Transportation |
- | - | ||||||||||||||||||||||
Utility |
- | |||||||||||||||||||||||
Government bonds |
||||||||||||||||||||||||
At December 31 |
1 |
Includes investments of Holding and other activities. |
2 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations . |
176 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
Credit risk concentrations – Government bonds per country of risk 2022 |
Americas |
United Kingdom |
International |
Asset Management |
Total 2022 1) 2) |
|||||||||||||||
United States |
- | - | ||||||||||||||||||
Netherlands |
- | - | - | - | - | |||||||||||||||
United Kingdom |
- | - | ||||||||||||||||||
Austria |
- | - | - | |||||||||||||||||
Belgium |
- | - | - | |||||||||||||||||
Finland |
- | - | - | - | - | |||||||||||||||
France |
- | - | ||||||||||||||||||
Germany |
- | - | - | - | - | |||||||||||||||
Hungary |
- | - | ||||||||||||||||||
Indonesia |
- | - | - | |||||||||||||||||
Luxembourg |
- | - | - | |||||||||||||||||
Spain |
- | - | - | |||||||||||||||||
Rest of Europe |
- | - | ||||||||||||||||||
Rest of world |
- | |||||||||||||||||||
Supranational |
- | - | - | - | - | |||||||||||||||
At December 31 |
1 |
Includes investments of Holding and other activities. |
2 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Credit risk concentrations – Credit rating 2022 3) |
Government bonds |
Corporate bonds |
RMBSs CMBSs ABSs |
Other |
Total 2022 1) 2) |
|||||||||||||||
AAA |
||||||||||||||||||||
AA |
- | |||||||||||||||||||
A |
- | |||||||||||||||||||
BBB |
- | |||||||||||||||||||
BB |
- | |||||||||||||||||||
B |
- | |||||||||||||||||||
CCC or lower |
- | |||||||||||||||||||
Assets not rated |
- | - | ||||||||||||||||||
At December 31 |
1 |
Includes investments of Holding and other activities. |
2 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
3 |
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. |
Aegon Annual Report on Form 20-F 2022 177 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Credit risk concentrations – debt securities and money market investments 2021 |
Americas | The Netherlands |
United Kingdom |
International | Asset Management |
Total 2021 1) |
Of which past due and / or impaired assets |
|||||||||||||||||||||
Residential mortgage-backed securities (RMBSs) |
- | |||||||||||||||||||||||||||
Commercial mortgage-backed securities (CMBSs) |
- | |||||||||||||||||||||||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans |
- | - | ||||||||||||||||||||||||||
ABSs – Other |
||||||||||||||||||||||||||||
Financial - Banking |
- | |||||||||||||||||||||||||||
Financial - Other |
||||||||||||||||||||||||||||
Capital goods and other industry |
- | |||||||||||||||||||||||||||
Communications & Technology |
- | |||||||||||||||||||||||||||
Consumer cyclical |
- | |||||||||||||||||||||||||||
Consumer non-cyclical |
- | |||||||||||||||||||||||||||
Energy |
- | |||||||||||||||||||||||||||
Transportation |
- | - | ||||||||||||||||||||||||||
Utility |
- | |||||||||||||||||||||||||||
Government bonds |
||||||||||||||||||||||||||||
At December 31 |
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) |
||||||||||||||||||
United States |
- | - | - | |||||||||||||||||||||
Netherlands |
- | - | - | - | ||||||||||||||||||||
United Kingdom |
- | - | ||||||||||||||||||||||
Austria |
- | - | - | |||||||||||||||||||||
Belgium |
- | - | - | |||||||||||||||||||||
Finland |
- | - | - | - | ||||||||||||||||||||
France |
- | - | ||||||||||||||||||||||
Germany |
- | - | - | - | ||||||||||||||||||||
Hungary |
- | - | - | - | ||||||||||||||||||||
Indonesia |
- | - | ||||||||||||||||||||||
Luxembourg |
- | - | - | |||||||||||||||||||||
Spain |
- | - | - | |||||||||||||||||||||
Rest of Europe |
- | - | ||||||||||||||||||||||
Rest of world |
- | |||||||||||||||||||||||
Supranational |
- | - | - | |||||||||||||||||||||
At December 31 |
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 |
||||||||||||||||||||
AA |
- | |||||||||||||||||||
A |
- | |||||||||||||||||||
BBB |
- | |||||||||||||||||||
BB |
- | |||||||||||||||||||
B |
- | |||||||||||||||||||
CCC or lower |
- | |||||||||||||||||||
Assets not rated |
- | |||||||||||||||||||
At December 31 |
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. |
178 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
Credit risk concentrations – mortgage loans 2022 |
Americas |
United Kingdom |
International |
Asset Management |
Total 2022 1) |
Of which past due and / or impaired assets |
||||||||||||||||||
Agricultural |
- | - | - | - | ||||||||||||||||||||
Apartment |
- | - | - | - | ||||||||||||||||||||
Industrial |
- | - | - | - | ||||||||||||||||||||
Office |
- | - | - | - | ||||||||||||||||||||
Retail |
- | - | - | - | ||||||||||||||||||||
Other commercial |
- | - | - | - | ||||||||||||||||||||
Residential |
- | - | - | |||||||||||||||||||||
At December 31 |
- |
- |
- |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Credit risk concentrations – mortgage loans 2021 |
Americas |
The Netherlands |
United Kingdom |
International |
Asset Management |
Total 2021 | Of which past due and / or impaired assets |
|||||||||||||||||||||
Agricultural |
- | - | - | - | - | |||||||||||||||||||||||
Apartment |
- | - | - | - | ||||||||||||||||||||||||
Industrial |
- | - | - | - | - | |||||||||||||||||||||||
Office |
- | - | - | - | - | |||||||||||||||||||||||
Retail |
- | - | - | - | ||||||||||||||||||||||||
Other commercial |
- | - | - | - | ||||||||||||||||||||||||
Residential |
- | - | ||||||||||||||||||||||||||
At December 31 |
- |
- |
Aegon Annual Report on Form 20-F 2022 179 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Total result 2022 |
December 31, 2022 |
|||||||||||||||
2022 1) |
Interest income |
Total gains and losses on sale of assets |
Total |
Investments |
||||||||||||
Residential mortgage-backed securities |
( |
) | ||||||||||||||
Commercial mortgage-backed securities |
( |
) | ( |
) | ||||||||||||
Asset-backed securities |
( |
) | ( |
) | ||||||||||||
ABSs - Other |
( |
) | ( |
) | ||||||||||||
Total |
( |
) |
( |
) |
1 | 2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Total result 2021 | December 31, 2021 | |||||||||||||||
2021 |
Interest income | Total gains and losses on sale of assets |
Total | Investments | ||||||||||||
Residential mortgage-backed securities |
( |
) | ||||||||||||||
Commercial mortgage-backed securities |
( |
) | ||||||||||||||
Asset-backed securities |
- | |||||||||||||||
ABSs - Other |
( |
) | ||||||||||||||
Total |
( |
) |
2022 1) |
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 |
( |
) | ||||||||||||||||||||||
Dutch government |
- | - | - | - | - | - | ||||||||||||||||||
Other government |
( |
) | ||||||||||||||||||||||
Mortgage-backed securities |
( |
) | ||||||||||||||||||||||
Asset-backed securities |
( |
) | ||||||||||||||||||||||
Corporate |
( |
) | ||||||||||||||||||||||
Money market investments |
( |
) | ||||||||||||||||||||||
Other |
( |
) | ||||||||||||||||||||||
Total |
( |
) |
||||||||||||||||||||||
Of which held by Aegon Americas |
( |
) |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
180 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
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 |
( |
) | ||||||||||||||||||||||
Dutch government |
( |
) | ||||||||||||||||||||||
Other government |
( |
) | ||||||||||||||||||||||
Mortgage-backed securities |
( |
) | ||||||||||||||||||||||
Asset-backed securities |
( |
) | ||||||||||||||||||||||
Corporate |
( |
) | ||||||||||||||||||||||
Money market investments |
- | ( |
) | |||||||||||||||||||||
Other |
( |
) | ||||||||||||||||||||||
Total |
( |
) |
||||||||||||||||||||||
Of which held by Aegon Americas and NL |
( |
) |
December 31, 2022 1) |
December 31, 2021 | |||||||||||||||
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) |
( |
) | ( |
) | ||||||||||||
Commercial mortgage-backed securities (CMBSs) |
( |
) | ( |
) | ||||||||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans |
( |
) | ( |
) | ||||||||||||
ABSs - Other |
( |
) | ( |
) | ||||||||||||
Financial Industry - Banking |
( |
) | ( |
) | ||||||||||||
Financial Industry - Insurance |
( |
) | ( |
) | ||||||||||||
Financial Industry - Other |
( |
) | ( |
) | ||||||||||||
Industrial |
( |
) | ( |
) | ||||||||||||
Utility |
( |
) | ( |
) | ||||||||||||
Government |
( |
) | ( |
) | ||||||||||||
Other |
( |
) | ( |
) | ||||||||||||
Total held by Aegon Americas and NL 1) |
( |
) |
( |
) | ||||||||||||
Held by other segments |
( |
) | ( |
) | ||||||||||||
Total |
( |
) |
( |
) |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 181 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 1) |
2021 |
|||||||||||||||||||||||||||||||
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 |
||||||||||||||||||||||||||||||||
Mortgage loans |
- | - | - | - | ||||||||||||||||||||||||||||
Other loans |
- | - | - | - | ||||||||||||||||||||||||||||
Accrued interest |
- | |||||||||||||||||||||||||||||||
Other financial assets - carried at fair value |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
At December 31 |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Impaired financial assets |
Carrying amount 2022 |
1) |
Carrying amount 2021 |
| ||||||||||||||||||||
Shares |
||||||||||||||||||||||||
Debt securities - carried at fair value |
||||||||||||||||||||||||
Mortgage loans |
- | |||||||||||||||||||||||
Other loans |
- | |||||||||||||||||||||||
Other financial assets - carried at fair value |
||||||||||||||||||||||||
At December 31 |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Equity, real estate and non-fixed income exposure |
Americas |
United Kingdom |
International |
Asset Management |
Holding and other activities |
Total 2022 |
1) | |||||||||||||||||
Equity funds |
- | - | ||||||||||||||||||||||
Common shares 2) |
- | |||||||||||||||||||||||
Preferred shares |
- | - | - | - | ||||||||||||||||||||
Investments in real estate |
- | - | - | |||||||||||||||||||||
Hedge funds |
- | - | - | - | ||||||||||||||||||||
Other alternative investments |
- | - | - | - | ||||||||||||||||||||
Other financial assets |
- | |||||||||||||||||||||||
At December 31 |
1 |
2022 excludes the exposures of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
2 |
Common shares in Holding and other activities includes t he elimination of treasury shares in the general account for an amount of EUR nil million. |
182 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
Equity, real estate and non-fixed income exposure |
Americas | The Netherlands |
United Kingdom |
International | Asset Management |
Holding and other activities |
Total 2021 |
|||||||||||||||||||||
Equity funds |
- | - | ||||||||||||||||||||||||||
Common shares 1) |
- | - | ||||||||||||||||||||||||||
Preferred shares |
- | - | - | - | - | |||||||||||||||||||||||
Investments in real estate |
- | - | - | |||||||||||||||||||||||||
Hedge funds |
- | - | - | - | - | |||||||||||||||||||||||
Other alternative investments |
- | - | - | - | ||||||||||||||||||||||||
Other financial assets |
- | |||||||||||||||||||||||||||
At December 31 |
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. |
Market risk concentrations – shares |
Americas |
United Kingdom |
International |
Asset Management |
Total 2022 1) 2) |
Of which impaired assets |
||||||||||||||||||
Communication |
- | - | - | - | ||||||||||||||||||||
Consumer |
- | - | - | - | ||||||||||||||||||||
Financials |
- | - | ||||||||||||||||||||||
Funds |
- | - | ||||||||||||||||||||||
Industries |
- | - | - | - | ||||||||||||||||||||
Other |
- | - | ||||||||||||||||||||||
At December 31 |
1 |
Includes investments of Holding and other activities. |
2 |
2022 excludes the market risk concentrations of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Market risk concentrations – shares |
Americas | The Netherlands |
United Kingdom |
International | Asset Management |
Total 2021 1) |
Of which impaired assets |
|||||||||||||||||||||
Communication |
- | - | - | - | - | |||||||||||||||||||||||
Consumer |
- | - | - | - | ||||||||||||||||||||||||
Financials |
- | - | ||||||||||||||||||||||||||
Funds |
- | - | ||||||||||||||||||||||||||
Industries |
- | - | - | - | ||||||||||||||||||||||||
Other |
- | - | - | |||||||||||||||||||||||||
At December 31 |
1 |
Includes investments of Holding and other activities. |
2022 |
2021 | 2020 | 2019 | 2018 | ||||||||||||||||
S&P 500 |
||||||||||||||||||||
Nasdaq |
||||||||||||||||||||
FTSE 100 |
||||||||||||||||||||
AEX |
Aegon Annual Report on Form 20-F 2022 183 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Immediate change of | Estimated approximate effects on net result |
Estimated approximate effects on shareholders’ equity |
||||||
2022 1) |
||||||||
Equity increase 10% |
||||||||
Equity decrease 10% |
( |
) | ( |
) | ||||
Equity increase 25% |
||||||||
Equity decrease 25% |
( |
) | ( |
) | ||||
2021 1) |
||||||||
Equity increase 10% |
||||||||
Equity decrease 10% |
( |
) | ( |
) | ||||
Equity increase 25% |
||||||||
Equity decrease 25% |
( |
) | ( |
) |
1 |
Includes the approximate effects of the disposal group |
184 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
2022 |
2021 | 2020 | 2019 | 2018 | ||||||||||||||||
3-month US LIBOR |
||||||||||||||||||||
3-month EURIBOR |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
10-year US Treasury |
||||||||||||||||||||
10-year Dutch government |
( |
) | ( |
) | ( |
) |
Parallel movement of yield curve |
Estimated approximate effects on net result |
Estimated approximate effects on shareholders’ equity |
||||||
2022 1) |
||||||||
Shift up 100 basis points |
( |
) | ( |
) | ||||
Shift down 100 basis points |
( |
) | ||||||
2021 1) |
||||||||
Shift up 100 basis points |
( |
) | ||||||
Shift down 100 basis points |
( |
) |
1 |
Includes the approximate effects of the disposal group |
Aegon Annual Report on Form 20-F 2022 185 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
◆ |
◆ |
◆ |
◆ |
2022 1) |
2021 | |||||||||||||||
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 |
||||||||||||||||
GBP LIBOR |
- | - | ||||||||||||||
USD LIBOR |
||||||||||||||||
Euribor |
||||||||||||||||
Fed Funds |
- | - | - | |||||||||||||
Total |
1 |
2022 excludes the non derivative financial instruments of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
2022 1) |
2021 | |||||||
Derivative financial instruments to transition to alternative benchmark |
Nominal Value |
Nominal Value | ||||||
By benchmark rate |
||||||||
GBP LIBOR |
- | - | ||||||
USD LIBOR |
||||||||
Euribor |
||||||||
Fed Funds |
- | |||||||
Total |
1 |
2022 excludes the derivative financial instruments of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
186 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
2022 |
2021 | 2020 | ||||||||||
Net result |
||||||||||||
Americas (in USD) |
( |
) | ( |
) | ||||||||
United Kingdom (in GBP) |
||||||||||||
Equity in functional currency |
||||||||||||
Americas (in USD) |
||||||||||||
United Kingdom (in GBP) |
Closing rates |
2022 |
2021 | 2020 | 2019 | 2018 | |||||||||||||||
USD |
||||||||||||||||||||
GBP |
Aegon Annual Report on Form 20-F 2022 187 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Movement of currency exchange rates 1) |
Estimated approximate effects on net result |
Estimated approximate effects on shareholders’ equity |
||||||
2022 2) |
||||||||
Increase by 15% of USD currencies relative to the euro |
( |
) | ||||||
Increase by 15% of GBP currencies relative to the euro |
||||||||
Increase by 15% of non-euro currencies relative to the euro |
( |
) | ||||||
Decrease by 15% of USD currencies relative to the euro |
( |
) | ||||||
Decrease by 15% of GBP currencies relative to the euro |
||||||||
Decrease by 15% of non-euro currencies relative to the euro |
( |
) | ||||||
2021 2) |
||||||||
Increase by 15% of USD currencies relative to the euro |
||||||||
Increase by 15% of GBP currencies relative to the euro |
||||||||
Increase by 15% of non-euro currencies relative to the euro |
||||||||
Decrease by 15% of USD currencies relative to the euro |
( |
) | ( |
) | ||||
Decrease by 15% of GBP currencies relative to the euro |
||||||||
Decrease by 15% of non-euro currencies relative to the euro |
( |
) | ( |
) |
1 |
The effect of currency exchange movements is reflected as a one-time shift up or down in the value of the non-euro currencies relative to the euro on December 31. |
2 |
Includes the approximate effects of the disposal group |
188 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 4 | ||||
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 | ||||||||||||||||||
2022 2) |
||||||||||||||||||||||||
Trust pass-through securities |
- | |||||||||||||||||||||||
Subordinated loans |
- | |||||||||||||||||||||||
Borrowings |
- | |||||||||||||||||||||||
Lease liabilities |
- | |||||||||||||||||||||||
Other financial liabilities |
||||||||||||||||||||||||
Total financial liabilities (excluding investment/insurance contracts) |
||||||||||||||||||||||||
Investment contracts 1) |
||||||||||||||||||||||||
Investment contracts for account of policyholders 1) |
||||||||||||||||||||||||
Total investment contracts |
||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||
Trust pass-through securities |
- | |||||||||||||||||||||||
Subordinated loans |
- | |||||||||||||||||||||||
Borrowings |
- | |||||||||||||||||||||||
Lease liabilities |
- | |||||||||||||||||||||||
Other financial liabilities |
||||||||||||||||||||||||
Total financial liabilities (excluding investment/insurance contracts) |
||||||||||||||||||||||||
Investment contracts 1) |
||||||||||||||||||||||||
Investment contracts for account of policyholders 1) |
||||||||||||||||||||||||
Total investment contracts |
1 |
Excluding investment contracts with discretionary participating features. |
2 |
2022 excludes the liabilities of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Financial liabilities relating to insurance and investment contracts 1) |
On demand | < 1 yr amount | 1 < 5 yrs amount |
5 < 10 yrs amount |
> 10 yrs amount |
Total amount | ||||||||||||||||||
2022 2) |
||||||||||||||||||||||||
Insurance contracts |
- | |||||||||||||||||||||||
Insurance contracts for account of policyholders |
- | |||||||||||||||||||||||
Investment contracts |
- | |||||||||||||||||||||||
Investment contracts for account of policyholders |
- | |||||||||||||||||||||||
- |
||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||
Insurance contracts |
- | |||||||||||||||||||||||
Insurance contracts for account of policyholders |
- | |||||||||||||||||||||||
Investment contracts |
- | |||||||||||||||||||||||
Investment contracts for account of policyholders |
||||||||||||||||||||||||
1 |
The liability amount in the consolidated financial statements reflects the discounting for interest as well as adjustments for the timing of other factors as described above. As a result, the sum of the cash benefit payments shown for all years in the table exceeds the corresponding liability amounts included in notes 34 Insurance contracts and 35 Investments contracts. |
2 |
2022 excludes the liabilities of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 189 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Maturity analysis relating to derivatives 1) (Contractual cash flows) |
On demand | < 1 yr amount | 1 < 5 yrs amount |
|
5 < 10 yrs amount |
|
> 10 yrs amount |
|
Total amount | |||||||||||||||
2022 2) |
||||||||||||||||||||||||
Gross settled |
||||||||||||||||||||||||
Cash inflows |
- | |||||||||||||||||||||||
Cash outflows |
- | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
Net settled |
||||||||||||||||||||||||
Cash inflows |
- | |||||||||||||||||||||||
Cash outflows |
- | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
2021 |
||||||||||||||||||||||||
Gross settled |
||||||||||||||||||||||||
Cash inflows |
- | |||||||||||||||||||||||
Cash outflows |
- | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
Net settled |
||||||||||||||||||||||||
Cash inflows |
- | |||||||||||||||||||||||
Cash outflows |
- | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
1 |
Derivatives includes all financial derivatives regardless whether they have a positive or a negative value. It does not include bifurcated embedded derivatives. These are presented together with the host contract. For interest rate derivatives only, cash flows related to the pay leg are taken into account for determining the gross undiscounted cash flows. |
2 |
2022 excludes the derivatives of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
◆ |
Americas: |
◆ |
The Netherlands: which covers businesses activities from Aegon the Netherlands; |
◆ |
United Kingdom: which covers businesses activities from platform business and traditional insurance in the United Kingdom; |
◆ |
International: |
◆ |
Asset Management: |
◆ |
Holding and other activities: one operating segment which includes financing, employee and other administrative expenses of holding companies. |
190 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 5 | ||||
Aegon Annual Report on Form 20-F 2022 191 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
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 (refer to note 3 Critical accounting estimates and judgement in applying accounting policies); 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 |
||||||||||||||||||||||||||||||
2022 |
||||||||||||||||||||||||||||||||||||||||
Operating result |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
Fair value items |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Realized gains / (losses) on investments |
( |
) | ( |
) | - | - | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Impairment charges |
( |
) | ( |
) | ( |
) | - | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Impairment reversals |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Non-operating items |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||
Other income / (charges) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Result before tax |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Income tax (expense) / benefit |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Net result |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
- |
( |
) | |||||||||||||||||||||||||||
Inter-segment operating result |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||||||||||
2022 |
||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums |
- | - | ( |
) | ||||||||||||||||||||||||||||||||||||
Accident and health insurance |
- | - | - | - | ( |
) | ||||||||||||||||||||||||||||||||||
General insurance |
- | - | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||
Total gross premiums |
- |
- |
( |
) |
||||||||||||||||||||||||||||||||||||
Investment income |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Fee and commission income |
- | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||
Other revenues |
- | - | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||
Total revenues |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||
Inter-segment revenues |
( |
) |
- |
- |
192 |
Aegon Annual Report on Form 20-F 2022 |
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 |
||||||||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||||||||||||||
Operating result |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Fair value items |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Realized gains / (losses) on investments |
- | ( |
) | |||||||||||||||||||||||||||||||||||||
Impairment charges |
( |
) | ( |
) | - | - | ( |
) | ( |
) | - | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Impairment reversals |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
Non-operating items |
( |
) |
( |
) |
- |
( |
) |
|||||||||||||||||||||||||||||||||
Other income / (charges) |
( |
) | ( |
) | ( |
) | ( |
) | - | ( |
) | ( |
) | |||||||||||||||||||||||||||
Result before tax |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||
Income tax (expense) / benefit |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | - | ( |
) | ( |
) | |||||||||||||||||||||||||
Net result |
( |
) |
- |
|||||||||||||||||||||||||||||||||||||
Inter-segment operating result |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums |
- | - | - | ( |
) | |||||||||||||||||||||||||||||||||||
Accident and health insurance |
- | - | - | ( |
) | |||||||||||||||||||||||||||||||||||
General insurance |
- | - | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||
Total gross premiums |
- |
- |
- |
( |
) |
|||||||||||||||||||||||||||||||||||
Investment income |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Fee and commission income |
- | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||
Other revenues |
- | - | - | - | ( |
) | ||||||||||||||||||||||||||||||||||
Total revenues |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||
Inter-segment revenues |
- | - |
Aegon Annual Report on Form 20-F 2022 193 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
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 |
( |
) | ||||||||||||||||||||||||||||||||||||||
Fair value items |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | - | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Realized gains / (losses) on investments |
- | ( |
) | - | ( |
) | ||||||||||||||||||||||||||||||||||
Impairment charges |
( |
) | ( |
) | - | ( |
) | ( |
) | ( |
) | - | ( |
) | ( |
) | ||||||||||||||||||||||||
Impairment reversals |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Non-operating items |
( |
) |
( |
) |
( |
) |
( |
) |
- |
( |
) |
( |
) |
( |
) | |||||||||||||||||||||||||
Other income / (charges) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | - | ( |
) | ( |
) | |||||||||||||||||||||||||
Result before tax |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||
Income tax (expense) / benefit |
( |
) | ( |
) | ( |
) | ( |
) | - | |||||||||||||||||||||||||||||||
Net result |
( |
) |
( |
) |
( |
) |
- |
( |
) | |||||||||||||||||||||||||||||||
Inter-segment operating result |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||||||||||
2020 |
||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums |
- | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||
Accident and health insurance |
- | - | - | ( |
) | |||||||||||||||||||||||||||||||||||
General insurance |
- | - | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||
Total gross premiums |
- |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||
Investment income |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Fee and commission income |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Other revenues |
- | - | - | - | ( |
) | ||||||||||||||||||||||||||||||||||
Total revenues |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||
Inter-segment revenues |
- | - |
194 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 5 | ||||
Presentation Non-Operating result |
Note |
2022 |
2021 | 2020 | ||||||||||||
Result before tax from continuing operations |
( |
( |
) | |||||||||||||
Result before tax from discontinued operations |
51 |
|||||||||||||||
Impairment loss on remeasurement of disposal group |
51 |
( |
) | - | - | |||||||||||
Result before tax from continuing operations and discontinued operations |
( |
) |
( |
) | ||||||||||||
Elimination of share in earnings of joint ventures and associates |
( |
) | ( |
) | ||||||||||||
Premium income |
6 |
( |
) | ( |
) | |||||||||||
Rental income |
7 |
|||||||||||||||
Dividend income |
7 |
( |
) | ( |
) | |||||||||||
Fee and commission income |
8 |
( |
) | ( |
) | |||||||||||
Recovered claims and benefits |
9 |
- | ||||||||||||||
Change in valuation of reinsurance ceded |
9 |
( |
) | |||||||||||||
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives |
10 |
|||||||||||||||
Net fair value change on borrowings and other financial liabilities |
10 |
( |
) | ( |
) | |||||||||||
Realized gains and losses on financial investments |
10 |
( |
) | ( |
) | |||||||||||
Gains and (losses) on investments in real estate |
10 |
( |
) | ( |
) | |||||||||||
Net fair value change of derivatives |
10 |
( |
) | |||||||||||||
Other income |
11 |
( |
) | ( |
) | ( |
) | |||||||||
Benefits and claims paid life |
12 |
- | ||||||||||||||
Change in valuation of liabilities for insurance contracts |
12 |
( |
) | ( |
) | |||||||||||
Change in valuation of liabilities for investment contracts |
12 |
( |
) | |||||||||||||
Policyholder claims and benefits - Other |
12 |
( |
) | ( |
) | ( |
) | |||||||||
Commissions and expenses |
14 |
|||||||||||||||
Impairment (charges) reversals |
15 |
( |
) | |||||||||||||
Interest charges and related fees |
16 |
- | - | |||||||||||||
Other charges |
17 |
|||||||||||||||
Results of CEE businesses which were previously reported in operating results |
- | ( |
) | - | ||||||||||||
Operating result |
◆ |
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 10 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 10 and includes: 1) the over- or underperformance of derivatives of EUR |
◆ |
Net foreign currency gains and (losses) are reported as part of the respective line in note 10. |
◆ |
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 12. |
◆ |
Change in valuation of liabilities for insurance contracts is reported as part of the respective line in note 12. |
◆ |
Change in valuation of liabilities for investment contracts is reported as part of the respective line in note 12. |
◆ |
Policyholder claims and benefits - Other are reported as part of the ‘Other’ line in note 12 and is related to policyholder tax. |
Aegon Annual Report on Form 20-F 2022 195 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
◆ |
Commissions and expenses include: 1) Restructuring charges of EUR |
◆ |
Impairment (charges) reversals include: 1) Impairment charges and reversals on financial assets, excluding receivables of EUR |
◆ |
There are no interest charges and related fees that are classified for segment reporting purposes as non-operating results. |
196 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 5 | ||||
Other selected income statement items |
Americas | The Netherlands |
United Kingdom | International | Asset Management |
Holding other activities |
Total | |||||||||||||||||||||
2022 |
||||||||||||||||||||||||||||
Amortization of deferred expenses, VOBA and future servicing rights |
- | - | - | |||||||||||||||||||||||||
Depreciation |
- | |||||||||||||||||||||||||||
Impairment charges / (reversals) on financial assets, excluding receivables |
- | - | - | |||||||||||||||||||||||||
Impairment charges / (reversals) on non- financial assets and receivables |
- | - | ||||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||
Amortization of deferred expenses, VOBA and future servicing rights |
- | - | - | |||||||||||||||||||||||||
Depreciation |
||||||||||||||||||||||||||||
Impairment charges / (reversals) on financial assets, excluding receivables |
( |
) | ( |
) | - | - | - | ( |
) | ( |
) | |||||||||||||||||
Impairment charges / (reversals) on non- financial assets and receivables |
- | - | ||||||||||||||||||||||||||
2020 |
||||||||||||||||||||||||||||
Amortization of deferred expenses, VOBA and future servicing rights |
- | - | - | |||||||||||||||||||||||||
Depreciation |
||||||||||||||||||||||||||||
Impairment charges / (reversals) on financial assets, excluding receivables |
- | - | ||||||||||||||||||||||||||
Impairment charges / (reversals) on non- financial assets and receivables |
||||||||||||||||||||||||||||
Number of employees |
Americas | The Netherlands |
United Kingdom | International | Asset Management |
Holding and other activities |
Total | |||||||||||||||||||||
2022 |
||||||||||||||||||||||||||||
Number of employees - headcount |
||||||||||||||||||||||||||||
Of which Aegon’s share of employees in joint ventures and associates |
- | - | - | |||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||
Number of employees - headcount |
||||||||||||||||||||||||||||
Of which Aegon’s share of employees in joint ventures and associates |
- | - | ||||||||||||||||||||||||||
2020 |
||||||||||||||||||||||||||||
Number of employees - headcount |
||||||||||||||||||||||||||||
Of which Aegon’s share of employees in joint ventures and associates |
- | - |
Aegon Annual Report on Form 20-F 2022 | 197 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Summarized assets and liabilities per segment |
Americas |
The Netherlands 1) |
United Kingdom |
Interna- tional |
Asset Manage- ment |
Holding and other activities |
Eliminations |
Total |
||||||||||||||||||||||||
2022 |
||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Cash and Cash equivalents |
- | - | ||||||||||||||||||||||||||||||
Assets held for sale |
- | - | - | - | - | - | ||||||||||||||||||||||||||
Investments |
- | - | ||||||||||||||||||||||||||||||
Investments for account of policyholders |
- | - | - | - | ||||||||||||||||||||||||||||
Investments in joint ventures |
- | - | - | ( |
) | - | ||||||||||||||||||||||||||
Investments in associates |
- | - | - | - | ||||||||||||||||||||||||||||
Deferred expenses |
- | - | - | ( |
) | |||||||||||||||||||||||||||
Other assets |
- | ( |
) | |||||||||||||||||||||||||||||
Total assets |
( |
) |
||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||
Insurance contracts |
- | - | - | ( |
) | |||||||||||||||||||||||||||
Insurance contracts for account of policyholders |
- | - | - | - | ||||||||||||||||||||||||||||
Investment contracts |
- | - | - | - | ||||||||||||||||||||||||||||
Investment contracts for account of policyholders |
- | - | - | - | ||||||||||||||||||||||||||||
Liabilities held for sale |
- | - | - | - | - | - | ||||||||||||||||||||||||||
Other liabilities |
- | ( |
) | |||||||||||||||||||||||||||||
Total liabilities |
( |
) |
1 |
Please refer to note 51 Discontinued operations for the summarized assets and liabilities of Aegon the Netherlands |
Summarized assets and liabilities per segment |
Americas | The Netherlands |
United Kingdom |
Interna- tional |
Asset Manage- ment |
Holding and other activities |
Eliminations | Total | ||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Cash and Cash equivalents |
- | |||||||||||||||||||||||||||||||
Investments |
- | |||||||||||||||||||||||||||||||
Investments for account of policyholders |
- | - | ( |
) | ||||||||||||||||||||||||||||
Investments in joint ventures |
- | - | ||||||||||||||||||||||||||||||
Investments in associates |
- | ( |
) | |||||||||||||||||||||||||||||
Deferred expenses |
- | - | - | |||||||||||||||||||||||||||||
Other assets |
( |
) | ||||||||||||||||||||||||||||||
Total assets |
( |
) |
||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||
Insurance contracts |
- | - | ( |
) | ||||||||||||||||||||||||||||
Insurance contracts for account of policyholders |
- | - | - | |||||||||||||||||||||||||||||
Investment contracts |
- | - | - | |||||||||||||||||||||||||||||
Investment contracts for account of policyholders |
- | - | - | |||||||||||||||||||||||||||||
Other liabilities |
( |
) | ||||||||||||||||||||||||||||||
Total liabilities |
( |
) |
198 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 5 | ||||
Investments |
Americas |
The Netherlands 1) |
United Kingdom |
Interna- tional |
Asset Manage- ment |
Holding and other activities |
Eliminations |
Total |
||||||||||||||||||||||||
2022 |
||||||||||||||||||||||||||||||||
Shares |
- | - | ||||||||||||||||||||||||||||||
Debt securities |
- | - | - | |||||||||||||||||||||||||||||
Loans |
- | - | - | - | ||||||||||||||||||||||||||||
Other financial assets |
- | - | - | |||||||||||||||||||||||||||||
Investments in real estate |
- | - | - | - | - | |||||||||||||||||||||||||||
Investments general account |
- |
- |
||||||||||||||||||||||||||||||
Shares |
- | - | - | - | - | |||||||||||||||||||||||||||
Debt securities |
- | - | - | - | - | |||||||||||||||||||||||||||
Unconsolidated investment funds |
- | - | - | - | ||||||||||||||||||||||||||||
Other financial assets |
- | - | - | - | - | |||||||||||||||||||||||||||
Investments in real estate |
- | - | - | - | - | - | ||||||||||||||||||||||||||
Investments for account of policyholders |
- |
- |
- |
- |
||||||||||||||||||||||||||||
Investments on balance sheet |
- | - | ||||||||||||||||||||||||||||||
Off-balance sheet investments third parties |
- | - | ||||||||||||||||||||||||||||||
Total revenue-generating investments |
- |
|||||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||||||
Available-for-sale |
- | - | - | |||||||||||||||||||||||||||||
Loans |
- | - | - | - | ||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss |
- | - | ||||||||||||||||||||||||||||||
Investments in real estate |
- | - | - | - | ||||||||||||||||||||||||||||
Total investments on balance sheet |
- |
- |
||||||||||||||||||||||||||||||
Investments in joint ventures |
- | - | - | ( |
) | - | ||||||||||||||||||||||||||
Investments in associates |
- | - | - | - | ||||||||||||||||||||||||||||
Assets held for sale |
- | - | - | - | - | - | ||||||||||||||||||||||||||
Other assets |
- | ( |
) | |||||||||||||||||||||||||||||
Consolidated total assets |
( |
) |
1 |
Please refer to note 51 Discontinued operations for the assets of Aegon the Netherlands |
Aegon Annual Report on Form 20-F 2022 | 199 |
![]() |
About Aegon |
Governance and risk manage ment |
Financial information |
Non-financial information |
||||||
Investments |
Americas | The Netherlands |
United Kingdom |
International 1) |
Asset Management |
Holding and other activities |
Eliminations | Total |
||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||||||
Shares |
- | |||||||||||||||||||||||||||||||
Debt securities |
- | - | ||||||||||||||||||||||||||||||
Loans |
- | - | - | |||||||||||||||||||||||||||||
Other financial assets |
- | - | ||||||||||||||||||||||||||||||
Investments in real estate |
- | - | - | - | ||||||||||||||||||||||||||||
Investments general account |
- |
|||||||||||||||||||||||||||||||
Shares |
- | - | - | ( |
) | |||||||||||||||||||||||||||
Debt securities |
- | - | - | - | ||||||||||||||||||||||||||||
Unconsolidated investment funds |
- | - | - | |||||||||||||||||||||||||||||
Other financial assets |
- | - | - | - | ||||||||||||||||||||||||||||
Investments in real estate |
- | - | - | - | - | - | ||||||||||||||||||||||||||
Investments for account of policyholders |
- |
- |
( |
) |
||||||||||||||||||||||||||||
Investments on balance sheet |
( |
) | ||||||||||||||||||||||||||||||
Off-balance sheet investments third parties |
- | - | ||||||||||||||||||||||||||||||
Total revenue-generating investments |
( |
) |
||||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||||||
Available-for-sale |
- | - | ||||||||||||||||||||||||||||||
Loans |
- | - | - | |||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss |
( |
) | ||||||||||||||||||||||||||||||
Investments in real estate |
- | - | - | |||||||||||||||||||||||||||||
Total investments on balance sheet |
( |
) |
||||||||||||||||||||||||||||||
Investments in joint ventures |
- | - | ||||||||||||||||||||||||||||||
Investments in associates |
- | ( |
) | |||||||||||||||||||||||||||||
Other assets |
( |
) | ||||||||||||||||||||||||||||||
Consolidated total assets |
( |
) |
2022 |
2021 1) |
2020 1) |
||||||||||
Life insurance |
||||||||||||
Non-life insurance |
||||||||||||
Total premium income |
||||||||||||
Accident and health insurance |
||||||||||||
General insurance |
||||||||||||
Non-life insurance premium income |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
200 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 7 | ||||
2022 |
2021 1) |
2020 1) |
||||||||||
Life insurance |
||||||||||||
Non-life insurance |
||||||||||||
Total premiums paid to reinsurers |
||||||||||||
Accident and health insurance |
||||||||||||
General insurance |
||||||||||||
Non-life insurance premiums paid to reinsurers |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
2022 |
2021 1) |
2020 1) |
||||||||||
Interest income |
||||||||||||
Dividend income |
||||||||||||
Rental income |
||||||||||||
Total investment income |
||||||||||||
Interest income accrued on impaired financial assets |
( |
) | ||||||||||
Interest income on financial assets that are not carried at Fair value through profit or loss |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Total investment income from: |
2022 |
2021 1) |
2020 1) |
|||||||||
Shares |
||||||||||||
Debt securities and money market instruments |
||||||||||||
Loans |
||||||||||||
Real estate |
||||||||||||
Other |
||||||||||||
Total |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Investment income is split into: |
2022 |
2021 1) |
2020 1) |
|||||||||
Investment income related to general account |
||||||||||||
Investment income for account of policyholders |
||||||||||||
Total |
||||||||||||
Investment income from financial assets held for general account: |
||||||||||||
Available-for-sale |
||||||||||||
Loans |
||||||||||||
Financial assets designated at fair value through profit or loss |
||||||||||||
Real estate |
( |
) | ||||||||||
Derivatives |
( |
) | ( |
) | ||||||||
Other |
( |
) | ||||||||||
Total |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 | 201 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 |
2021 1) |
2020 1) |
||||||||||
Fee income from asset management |
||||||||||||
Commission income |
||||||||||||
Other |
||||||||||||
Total fee and commission income |
||||||||||||
Included in fee and commission income: |
||||||||||||
Fees on trust and fiduciary activities |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
2022 |
2021 1) |
2020 1) |
||||||||||
Recovered claims and benefits |
||||||||||||
Change in technical provisions |
( |
) | ||||||||||
Commissions |
||||||||||||
Amortization charges |
( |
) | ||||||||||
Total |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Results from financial transactions comprise: |
2022 |
2021 1) |
2020 1) |
|||||||||
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives |
||||||||||||
Realized gains and (losses) on financial investments |
( |
) | ||||||||||
Gains and (losses) on investments in real estate |
( |
) | ||||||||||
Net fair value change of derivatives |
( |
) | ||||||||||
Net fair value change on account of policyholder financial assets at fair value through profit or loss |
( |
) | ||||||||||
Net fair value change on investments in real estate for account of policyholders |
( |
) | ( |
) | ||||||||
Net foreign currency gains and (losses) |
||||||||||||
Net fair value change on borrowings and other financial liabilities |
( |
) | ||||||||||
Total |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives comprise: |
2022 |
2021 1) |
2020 1) |
|||||||||
Shares |
( |
) | ( |
) | ||||||||
Debt securities and money market investments |
( |
) | ( |
) | ||||||||
Other |
||||||||||||
Total |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
202 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 10 | ||||
Realized gains and losses on financial investments comprise: |
2022 |
2021 1) |
2020 1) |
|||||||||
Shares |
( |
) | ||||||||||
Debt securities and money market investments |
( |
) | ||||||||||
Loans |
||||||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||
Total |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Realized gains and losses on financial investments comprise: |
2022 |
2021 1) |
2020 1) |
|||||||||
Available-for-sale investments |
( |
) | ||||||||||
Loans |
||||||||||||
Total |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Net fair value change of derivatives comprise: |
2022 |
2021 1) |
2020 1) |
|||||||||
Net fair value change on economic hedges where no hedge accounting is applied |
( |
) | ( |
) | ( |
) | ||||||
Net fair value change on bifurcated embedded derivatives |
( |
) | ||||||||||
Ineffective portion of hedge transactions to which hedge accounting is applied |
||||||||||||
Total |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
The ineffective portion of hedge transactions to which hedge accounting is applied comprises: |
2022 |
2021 1) |
2020 1) |
|||||||||
Fair value change on hedging instruments in a fair value hedge |
( |
) | ( |
) | ||||||||
Fair value change on hedged items in a fair value hedge |
( |
) | ||||||||||
Ineffectiveness fair value hedge |
||||||||||||
Ineffectiveness cash flow hedges |
( |
) | - | |||||||||
Total |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Net fair value change on for account of policyholder financial assets at fair value through profit or loss comprise: |
2022 |
2021 1) |
2020 1) |
|||||||
Shares |
( |
) | ||||||||
Debt securities and money market investments |
( |
) | ( |
|||||||
Unconsolidated investment funds |
( |
) | ||||||||
Derivatives |
( |
) | ( |
|||||||
Total |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Net fair value change on borrowings and other financial liabilities |
2022 |
2021 1) |
2020 1) |
|||||||||
Borrowings |
||||||||||||
Other financial liabilities |
( |
) | ||||||||||
Total |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 203 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 |
2021 1) |
2020 1) |
||||||||||
Other income |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
2022 |
2021 1) |
2020 1) |
||||||||||
Benefits and claims paid life |
||||||||||||
Benefits and claims paid non-life |
||||||||||||
Change in valuation of liabilities for insurance contracts |
( |
) | ||||||||||
Change in valuation of liabilities for investment contracts |
( |
) | ||||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||
Total |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
2022 |
2021 1) |
2020 1) |
||||||||||
Surplus interest bonuses |
||||||||||||
Profit appropriated to policyholders |
||||||||||||
Total |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
204 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 14 | ||||
2022 |
2021 1) |
2020 1) |
||||||||||
Commissions |
||||||||||||
Employee expenses |
||||||||||||
Administration expenses |
||||||||||||
Deferred expenses |
( |
) | ( |
) | ( |
) | ||||||
Amortization of deferred expenses |
||||||||||||
Amortization of VOBA and future servicing rights |
||||||||||||
Total |
||||||||||||
Included in administration expenses: |
||||||||||||
Depreciation of equipment, software and real estate held for own use |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Employee expenses |
2022 |
2021 1) |
2020 1) |
|||||||||
Salaries |
||||||||||||
Post-employment benefit costs |
||||||||||||
Social security charges |
||||||||||||
Other personnel costs |
||||||||||||
Shares |
||||||||||||
Total |
||||||||||||
Included in employee expenses: |
||||||||||||
Defined contribution expenses |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 205 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2018 | 2019 | 2020 | 2021 | 2022 |
Total | |||||||||||||||||||
Conditionally granted 1) |
|
|
|
|||||||||||||||||||||
Allocated 2) |
|
- |
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. |
206 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 15 | ||||
2018 | 2019 | 2020 | 2021 | 2022 | Total | |||||||||||||||||||
Unvested at January 1, 2021 |
- |
- |
||||||||||||||||||||||
Conditionally granted as variable compensation 1) |
- | - | - | - | ||||||||||||||||||||
Allocated 2) |
( |
) | ( |
) | - | |||||||||||||||||||
Forfeited |
( |
) | ( |
) | ( |
) | ( |
) | - | ( |
) | |||||||||||||
Vested |
( |
) | ( |
) | ( |
) | ( |
) | - | ( |
) | |||||||||||||
Unvested at December 31, 2021 |
- |
|||||||||||||||||||||||
Conditionally granted as variable compensation 1) |
- | - | - | - | ||||||||||||||||||||
Allocated 2) |
||||||||||||||||||||||||
Forfeited |
( |
) | ( |
) | ( |
) | ( |
) | - | ( |
) | |||||||||||||
Vested |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Unvested at December 31, 2022 |
- |
|||||||||||||||||||||||
Grant price (in EUR) 3) |
||||||||||||||||||||||||
Fair value of shares at grant date (in EUR) 4) |
1 |
The at target number of shares which were conditionally granted as variable compensation for the plan year. |
2 |
Shares that are already allocated during a plan year, are a combination of shares as part of fixed compensation or a 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 2022 plan year, this is the VWAP for the period December 15, 2021 to January 15, 2022. |
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: |
2022 |
2021 1) |
2020 1) |
|||||||||
Impairment charges on financial assets, excluding receivables |
||||||||||||
Impairment reversals on financial assets, excluding receivables |
( |
) | ( |
) | ( |
) | ||||||
Impairment charges and reversals on non-financial assets and receivables |
||||||||||||
Total |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Impairment charges on financial assets, excluding receivables, from: |
2022 |
2021 1) |
2020 1) |
|||||||||
Shares |
||||||||||||
Debt securities and money market instruments |
||||||||||||
Loans |
||||||||||||
Total |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 207 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Impairment reversals on financial assets, excluding receivables, from: |
2022 |
2021 1) |
2020 1) |
|||||||||
Shares |
( |
) | ||||||||||
Debt securities and money market instruments |
( |
) | ( |
) | ( |
) | ||||||
Loans |
( |
) | ( |
) | ( |
) | ||||||
Other |
( |
) | ( |
) | ||||||||
Total |
( |
) |
( |
) |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
2022 |
2021 1) |
2020 1) |
||||||||||
Subordinated loans |
||||||||||||
Trust pass-through securities |
||||||||||||
Borrowings |
||||||||||||
Other |
||||||||||||
Total |
||||||||||||
Included in interest charges and related fees: |
||||||||||||
Interest charges accrued on financial liabilities not carried at fair value through profit or loss |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
2022 |
2021 1) |
2020 1) |
||||||||||
Other charges |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
208 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 18 | ||||
Note |
2022 |
2021 1) |
2020 1) |
|||||||||||||
Current tax |
||||||||||||||||
Current year |
( |
) | ( |
) | ( |
) | ||||||||||
Adjustments to prior years |
( |
) | ( |
) | ( |
) | ||||||||||
( |
) |
( |
) |
( |
) | |||||||||||
Deferred tax |
40 |
|||||||||||||||
Origination / (reversal) of temporary differences |
( |
) | ( |
) | ||||||||||||
Changes in tax rates / bases |
( |
) | ( |
) | ( |
) | ||||||||||
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 |
( |
) | ||||||||||||||
Non-recognition of deferred tax assets |
||||||||||||||||
Adjustments to prior years |
( |
) | ||||||||||||||
( |
) |
( |
) | |||||||||||||
Income tax for the period (income) / charge |
( |
) |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Reconciliation between standard and effective income tax: |
2022 |
2021 1) |
2020 1) |
|||||||||
Result before tax from continuing operations |
( |
) | ( |
) | ||||||||
Income tax calculated using weighted average applicable statutory tax rates |
( |
) | ( |
) | ||||||||
Difference due to the effects of: |
||||||||||||
Non-taxable income |
( |
) | ( |
) | ( |
) | ||||||
Non-tax deductible expenses |
||||||||||||
Changes in tax rate/base |
( |
) | ( |
) | ( |
) | ||||||
Different tax rates on overseas earnings |
- | - | ||||||||||
Tax credits |
( |
) | ( |
) | ( |
) | ||||||
Other taxes |
( |
) | ( |
) | ||||||||
Adjustments to prior years |
( |
) | ( |
) | ||||||||
Change in uncertain tax positions |
( |
) | ( |
) | - | |||||||
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 |
( |
) | ||||||||||
Non-recognition of deferred tax assets |
||||||||||||
Tax effect of (profit) / losses from joint ventures and associates |
( |
) | ( |
) | ( |
) | ||||||
Other |
( |
) | ( |
) | ( |
) | ||||||
( |
) |
( |
) |
( |
) | |||||||
Income tax for the period (result) / charge |
( |
) |
( |
) |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 209 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 |
2021 1) |
2020 1) |
||||||||||||||
Items that will not be reclassified to profit and loss: |
||||||||||||||||
Changes in revaluation reserve real estate held for own use |
- | ( |
) | |||||||||||||
Remeasurements of defined benefit plans |
( |
) | ( |
) | ||||||||||||
( |
) |
( |
) |
|||||||||||||
Items that may be reclassified subsequently to profit and loss: |
||||||||||||||||
(Gains) / losses on revaluation of available-for-sale |
( |
) | ||||||||||||||
(Gains) / losses transferred to the income statement on disposal and impairment of available-for-sale |
( |
) | ( |
) | ||||||||||||
Changes in cash flow hedging reserve |
||||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserve |
( |
) | ( |
) | ||||||||||||
( |
) | |||||||||||||||
Total income tax related to components of other comprehensive income |
( |
) | ||||||||||||||
1 Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
||||||||||||||||
2022 |
2021 | 2020 | ||||||||||||||
Income tax related to equity instruments and other |
||||||||||||||||
Income tax related to equity instruments |
31 |
|||||||||||||||
Other |
||||||||||||||||
Total income tax recognized directly in retained earnings |
210 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 19 | ||||
2022 |
2021 | 2020 | ||||||||||
Continuing and discontinued operations |
||||||||||||
Net result attributable to owners of Aegon N.V. from continuing and discontinued operations |
( |
( |
) | |||||||||
Coupons on perpetual securities |
( |
) | ( |
) | ( |
) | ||||||
Net result attributable to owners for basic earnings per share calculation from continuing and discontinued operations |
( |
) |
( |
) | ||||||||
Net result attributable to common shareholders from continuing and discontinued operations |
( |
( |
) | |||||||||
Net result attributable to common shareholders B from continuing and discontinued operations |
( |
( |
) | |||||||||
Weighted average number of common shares outstanding (in million) |
||||||||||||
Weighted average number of common shares B outstanding (in million) |
||||||||||||
Basic earnings per common share (EUR per share) from continuing and discontinued operations |
( |
) | ( |
) | ||||||||
Basic earnings per common share B (EUR per share) from continuing and discontinued operations |
( |
) | - | |||||||||
Continuing operations |
||||||||||||
Net result attributable to owners of Aegon N.V. from continuing operations |
( |
( |
) | |||||||||
Coupons on perpetual securities |
( |
) | ( |
) | ( |
) | ||||||
Net result attributable to owners for basic earnings per share calculation from continuing operations |
( |
) |
( |
) | ||||||||
Net result attributable to common shareholders from continuing operations |
( |
( |
) | |||||||||
Net result attributable to common shareholders B from continuing operations |
( |
( |
) | |||||||||
Weighted average number of common shares outstanding (in million) |
||||||||||||
Weighted average number of common shares B outstanding (in million) |
||||||||||||
Basic earnings per common share (EUR per share) from continuing operations |
( |
) | ( |
) | ||||||||
Basic earnings per common share B (EUR per share) from continuing operations |
( |
) | ( |
) | ||||||||
Discontinued operations |
||||||||||||
Net result attributable to owners of Aegon N.V. from discontinued operations |
( |
|||||||||||
Coupons on perpetual securities |
||||||||||||
Net result attributable to owners for basic earnings per share calculation from discontinued operations |
( |
) |
||||||||||
Net result attributable to common shareholders from discontinued operations |
( |
|||||||||||
Net result attributable to common shareholders B from discontinued operations |
( |
|||||||||||
Weighted average number of common shares outstanding (in million) |
||||||||||||
Weighted average number of common shares B outstanding (in million) |
||||||||||||
Basic earnings per common share (EUR per share) from discontinued operations |
( |
) | ||||||||||
Basic earnings per common share B (EUR per share) from discontinued operations |
( |
) |
Aegon Annual Report on Form 20-F 2022 211 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
212 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 21 | ||||
2022 |
2021 | 2020 | ||||||||||
Cash at bank and in hand |
||||||||||||
Short-term deposits |
||||||||||||
Money market investments |
||||||||||||
Short-term collateral |
- | |||||||||||
At December 31 |
||||||||||||
Cash collateral received related to securities lending, repurchase agreements and margins on derivatives transactions |
||||||||||||
Income from security lending programs |
||||||||||||
Weighted effective interest rate on short-term deposits |
( |
( |
||||||||||
Average maturity days on short-term deposits |
Note |
2022 |
2021 | 2020 | |||||||||
Cash and cash equivalents |
||||||||||||
Cash classified as Assets held for sale |
- | - | ||||||||||
Net cash and cash equivalents |
||||||||||||
Cash and cash equivalents attributable to Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Summary cash flow statement |
2022 |
2021 1) |
2020 1) |
|||||||||
Net cash flows from operating activities |
( |
) | ( |
) | ||||||||
Net cash flows from investing activities |
( |
) | ( |
) | ||||||||
Net cash flows from financing activities |
( |
( |
) | |||||||||
Net increase / (decrease) in cash and cash equivalents |
( |
) |
( |
) | ||||||||
Net cash and cash equivalents are impacted by: |
||||||||||||
Positive (negative) effects of changes in exchange rates |
( |
) |
Aegon Annual Report on Form 20-F 2022 213 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Cash flows |
Non-cash changes |
|||||||||||||||||||||||||||||||||||
Reconciliation of debt from financing activities |
At January 1, 2022 |
Addition |
Repayment |
Realized gains / losses in income statement |
Movements related to fair value hedges |
Amortization |
Transfers to disposal groups |
Net exchange difference |
At December 31, 2022 |
|||||||||||||||||||||||||||
Subordinated borrowings |
- | - | - | - | - | |||||||||||||||||||||||||||||||
Trust pass-through securities |
- | - | - | ( |
) | ( |
) | - | ||||||||||||||||||||||||||||
Borrowings |
( |
) | - | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Assets held to hedge Trust pass-through securities |
- | - | ( |
) | - | - | - | - | ( |
) | ||||||||||||||||||||||||||
Assets held to hedge Borrowings |
- | - | - | - | - | - | - | - | - |
214 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 22 | ||||
Cash flows |
Non-cash changes |
|||||||||||||||||||||||||||||||||||
Reconciliation of debt from financing activities |
At January 1, 2021 |
Addition | Repayment | Realized gains / losses in income statement |
Movements related to fair value hedges |
Amortization | Transfer to/from other headings |
Net exchange difference |
At December 31, 2021 |
|||||||||||||||||||||||||||
Subordinated borrowings |
- | - | - | - | ||||||||||||||||||||||||||||||||
Trust pass-through securities |
- | - | - | ( |
) | - | - | |||||||||||||||||||||||||||||
Borrowings |
( |
) | - | ( |
) | - | ||||||||||||||||||||||||||||||
Assets held to hedge Trust pass-through securities |
- | - | ( |
) | - | - | - | |||||||||||||||||||||||||||||
Assets held to hedge Borrowings |
- | ( |
) | ( |
) | - | - | - | - | - |
Note |
2022 |
2021 | ||||||||||
Available-for-sale |
||||||||||||
Loans |
||||||||||||
Financial assets at fair value through profit or loss (FVTPL) |
||||||||||||
Total financial assets, excluding derivatives |
22.1 |
|||||||||||
Investments in real estate |
22.2 |
|||||||||||
Total investments for general account |
AFS | FVTPL | Loans | Total | Fair value | ||||||||||||||||
2022 |
||||||||||||||||||||
Shares |
- | |||||||||||||||||||
Debt securities |
- | |||||||||||||||||||
Money market and other short-term investments |
- | |||||||||||||||||||
Mortgage loans |
- | - | ||||||||||||||||||
Private loans |
- | - | ||||||||||||||||||
Deposits with financial institutions |
- | - | ||||||||||||||||||
Policy loans |
- | - | ||||||||||||||||||
Other |
- | |||||||||||||||||||
At December 31, 2022 |
||||||||||||||||||||
2021 |
||||||||||||||||||||
Shares |
- | |||||||||||||||||||
Debt securities |
- | |||||||||||||||||||
Money market and other short-term investments |
- | |||||||||||||||||||
Mortgage loans |
- | - | ||||||||||||||||||
Private loans |
- | - | ||||||||||||||||||
Deposits with financial institutions |
- | - | ||||||||||||||||||
Policy loans |
- | - | ||||||||||||||||||
Other |
||||||||||||||||||||
At December 31, 2021 |
2022 |
2021 | |||||||
Current portion: |
||||||||
Debt securities, money market and other short-term investments, mortgage and private loans |
Aegon Annual Report on Form 20-F 2022 215 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 |
2021 | |||||||
At January 1 |
( |
) | ( |
) | ||||
Addition charged to income statement |
( |
) | ( |
) | ||||
Reversal to income statement |
||||||||
Amounts written off |
||||||||
Transfers to disposal groups |
- | |||||||
At December 31 |
( |
) |
( |
) |
2022 |
2021 | |||||||
At January 1 |
||||||||
Additions |
||||||||
Subsequent expenditure capitalized |
||||||||
Disposals |
( |
) | ( |
) | ||||
Transfer from real estate for own use and equipment |
- | |||||||
Fair value gains / (losses) |
( |
) | ||||||
Net exchange differences |
||||||||
Transfers to disposal groups |
( |
) | - | |||||
Other |
- | |||||||
At December 31 |
||||||||
Investments in real estate held by: |
||||||||
Americas |
||||||||
The Netherlands |
- | |||||||
Value of Aegon’s properties which were appraised in the current year |
||||||||
Appraisals performed by independent external appraisers |
2022 |
2021 1) |
2020 1) |
||||||||||
Rental income reported as part of investment income |
( |
|||||||||||
Direct operating expenses (Including repairs and maintenance expenses): |
||||||||||||
- From investment property that generated rental income |
||||||||||||
- From investment property that did not generate rental income |
- |
1 |
Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
216 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 23 | ||||
Note |
2022 |
2021 | ||||||||||
Shares |
||||||||||||
Debt securities |
||||||||||||
Money market and other short-term investments |
||||||||||||
Deposits with financial institutions |
||||||||||||
Unconsolidated investment funds |
||||||||||||
Other |
||||||||||||
Total investments for account of policyholders at fair value through profit or loss, excluding derivatives |
||||||||||||
Investments in real estate |
23.1 |
|||||||||||
Total investments for account of policyholders |
2022 |
2021 | |||||||
At January 1 |
||||||||
Additions |
||||||||
Subsequent expenditure capitalized |
||||||||
Disposals |
( |
) | ( |
) | ||||
Fair value gains / (losses) |
( |
) | ||||||
Net exchange differences |
( |
) | ||||||
At December 31 |
2022 |
2021 | 2020 | ||||||||||
Rental income reported as part of investment income |
||||||||||||
Direct operating expenses from investment in real estate for account of policyholders |
Aegon Annual Report on Form 20-F 2022 217 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Derivative asset |
Derivative liability |
|||||||||||||||
2022 |
2021 | 2022 |
2021 | |||||||||||||
Derivatives for general account |
||||||||||||||||
Derivatives not designated in a hedge |
||||||||||||||||
Derivatives designated as fair value hedges |
||||||||||||||||
Derivatives designated as cash flow hedges |
||||||||||||||||
Derivatives desginated as Net foreign investment hedges |
||||||||||||||||
Derivatives for account of policyholders |
||||||||||||||||
Derivatives not designated in a hedge |
||||||||||||||||
Total derivatives 1) |
||||||||||||||||
Of which: |
||||||||||||||||
Current |
Derivative asset |
Derivative liability |
|||||||||||||||
Derivatives not designated in a hedge – general account |
2022 |
2021 | 2022 |
2021 | ||||||||||||
Derivatives held as an economic hedge |
||||||||||||||||
Bifurcated embedded derivatives |
||||||||||||||||
Total |
2022 |
2021 | |||||||||||||||
Credit derivative disclosure by quality |
Notional |
Fair value |
Notional | Fair value | ||||||||||||
AAA |
||||||||||||||||
AA |
||||||||||||||||
A |
||||||||||||||||
BBB |
||||||||||||||||
BB |
( |
) | ||||||||||||||
B or lower |
( |
) | ||||||||||||||
Total |
218 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 24 | ||||
2022 |
2021 1) |
2020 1) |
||||||||||
Gains (losses) related to the ineffectiveness portion of designated fair value hedges |
1 | Amounts for 2021 and 2020 have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 219 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Hedge ineffectiveness and reclassification of gains (losses) |
2022 |
2021 | 2020 | |||||||||
Hedge ineffectiveness on cash flow hedges |
( |
) | ||||||||||
Gains (losses) reclassified from equity into the income statement |
( |
) | ( |
) | ||||||||
Expected deferred gain (loss) to be reclassified from equity into net result during the next 12 months |
< 1 year |
1 -5 years |
5 - 10 years |
> 10 years |
2022 Total |
||||||||||||||||
Cash inflows |
||||||||||||||||||||
Cash outflows |
||||||||||||||||||||
Net cash flows |
||||||||||||||||||||
< 1 year |
1 - 5 years |
5 – 10 years |
> 10 years |
2021 Total |
||||||||||||||||
Cash inflows |
||||||||||||||||||||
Cash outflows |
||||||||||||||||||||
Net cash flows |
220 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 25 | ||||
Joint ventures |
Associates |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
At January 1 |
||||||||||||||||
Additions |
||||||||||||||||
Disposals |
( |
) |
- |
( |
) |
- |
||||||||||
Share in net result |
||||||||||||||||
Share in changes in equity (note 30.6) |
( |
) |
( |
) | ||||||||||||
Impairment reversals / (charges) |
- |
- |
( |
) |
||||||||||||
Dividends |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Net exchange difference |
( |
) |
( |
) |
||||||||||||
Transfer to / (from) other headings |
- |
- |
( |
) | ||||||||||||
Transfer to disposal groups |
( |
) |
- |
( |
) |
- |
||||||||||
At December 31 |
Aegon Annual Report on Form 20-F 2022 221 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Santander Spain Life |
AIFMC |
Other Joint ventures |
||||||||||||||||||||||
2022 |
2021 | 2022 |
2021 | 2022 |
2021 | |||||||||||||||||||
Summarized statement of financial position |
||||||||||||||||||||||||
Cash and cash equivalents |
||||||||||||||||||||||||
Other current assets |
||||||||||||||||||||||||
Total current assets |
||||||||||||||||||||||||
Non-current assets |
||||||||||||||||||||||||
Total assets |
||||||||||||||||||||||||
Current financial liabilities excluding trade payables and other provisions |
||||||||||||||||||||||||
Other current liabilities |
||||||||||||||||||||||||
Total current liabilities |
||||||||||||||||||||||||
Non-current financial liabilities excluding trade payables and other provisions |
||||||||||||||||||||||||
Other non-current liabilities |
||||||||||||||||||||||||
Total non-current financial liabilities |
||||||||||||||||||||||||
Total liabilities |
||||||||||||||||||||||||
Net assets |
||||||||||||||||||||||||
Summarized statement of comprehensive income |
||||||||||||||||||||||||
Revenue |
||||||||||||||||||||||||
Results from financial transactions |
( |
) | ||||||||||||||||||||||
Depreciation and amortization |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Interest income |
||||||||||||||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Profit or loss |
||||||||||||||||||||||||
Income tax (expense) or result |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Post-tax profit or (loss) |
||||||||||||||||||||||||
Other comprehensive income |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||
Dividends received |
||||||||||||||||||||||||
An overview of the summarized financial information of the carrying amount of the joint ventures is as follows: |
||||||||||||||||||||||||
Santander Spain Life |
AIFMC |
Other Joint ventures |
||||||||||||||||||||||
2022 |
2021 | 2022 |
2021 | 2022 |
2021 | |||||||||||||||||||
Net assets of joint venture as presented above |
||||||||||||||||||||||||
Net assets of joint venture excluding goodwill |
||||||||||||||||||||||||
Group share of net assets of joint venture, excluding goodwill |
||||||||||||||||||||||||
Goodwill on acquisition |
||||||||||||||||||||||||
Carrying amount |
222 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 26 | ||||
Santander Spain Life |
AIFMC |
Other Joint ventures |
||||||||||||||||||||||
2022 |
2021 | 2022 |
2021 | 2022 |
2021 | |||||||||||||||||||
Post-tax profit or loss |
||||||||||||||||||||||||
Other comprehensive income |
( |
) | ( |
) | - | ( |
) | |||||||||||||||||
Total comprehensive income |
Associates | ||||||||
2022 |
2021 1) |
|||||||
Post-tax profit or loss |
( |
) | ( |
) | ||||
Other comprehensive income |
( |
) | ||||||
Total comprehensive income |
( |
) |
( |
) | ||||
Carrying amount |
1 |
Amounts for 2021 related to post-tax profit or loss, other comprehensive income and total comprehensive income have been re-presented to reflect the classification of Aegon the Netherlands as held for sale and discontinued operations, refer to note 51 Discontinued operations. |
Assets arising from reinsurance contracts related to: |
2022 |
2021 | ||||||
Life insurance general account |
|
|
||||||
Non-life insurance |
||||||||
Investment contracts |
||||||||
At December 31 |
||||||||
Current |
||||||||
Non-current |
Aegon Annual Report on Form 20-F 2022 223 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Movements during the year in reinsurance assets relating to life insurance: |
Life insurance general account | |||
At January 1, 2022 |
||||
Gross premium and deposits – existing and new business |
||||
Unwind of discount / interest credited |
||||
Insurance liabilities released |
( |
) | ||
Fund charges released |
( |
) | ||
Changes to valuation of expected future benefits |
( |
) | ||
Net exchange differences |
||||
Transfer to/from insurance contracts |
( |
) | ||
Transfers to disposal groups |
( |
) | ||
Other movements |
||||
At December 31, 2022 |
||||
At January 1, 2021 |
||||
Gross premium and deposits – existing and new business |
||||
Unwind of discount / interest credited |
||||
Insurance liabilities released |
( |
) | ||
Fund charges released |
( |
) | ||
Changes to valuation of expected future benefits |
( |
) | ||
Net exchange differences |
||||
Transfer to/from insurance contracts |
||||
Other movements |
||||
At December 31, 2021 |
Movements during the year in reinsurance assets relating to non-life insurance: |
2022 |
2021 | ||||||
At January 1 |
||||||||
Gross premium and deposits – existing and new business |
||||||||
Unwind of discount / interest credited |
||||||||
Insurance liabilities released |
( |
) | ( |
) | ||||
Changes in unearned premiums |
( |
) | ( |
) | ||||
Incurred related to current year |
||||||||
Incurred related to prior years |
||||||||
Release for claims settled current year |
( |
) | ( |
) | ||||
Release for claims settled prior years |
( |
) | ( |
) | ||||
Change in IBNR |
( |
) | ||||||
Net exchange differences |
||||||||
Disposal of a business |
( |
) | ||||||
Transfers to disposal groups |
( |
) | ||||||
Other movements |
( |
) | ( |
) | ||||
At December 31 |
Assets arising from reinsurance contracts related to: |
2022 |
2021 | ||||||
Normal course of business |
||||||||
Exit of a business |
||||||||
At December 31 |
224 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 27 | ||||
2022 |
2021 | |||||||
DPAC for insurance contracts and investment contracts with discretionary participation features |
|
|
||||||
Deferred cost of reinsurance |
||||||||
Deferred transaction costs for investment management services |
||||||||
At December 31 |
||||||||
Current |
||||||||
Non-current |
2022 |
2021 |
|||||||||||||||||||||||
Deferred |
Deferred |
Deferred | Deferred | |||||||||||||||||||||
costs of |
transaction |
costs of | transaction | |||||||||||||||||||||
DPAC |
reinsurance |
costs |
DPAC | reinsurance | costs | |||||||||||||||||||
At January 1 |
||||||||||||||||||||||||
Costs deferred during the year |
||||||||||||||||||||||||
Amortization through income statement |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Shadow accounting adjustments |
||||||||||||||||||||||||
Net exchange differences |
||||||||||||||||||||||||
Transfers to disposal groups |
( |
) | ( |
) | ||||||||||||||||||||
Other |
( |
) | ( |
) | ||||||||||||||||||||
At December 31 |
Note |
2022 |
2021 | ||||||||||
Real estate held for own use and equipment |
28.1 |
|||||||||||
Receivables |
28.2 |
|||||||||||
Accrued income |
28.3 |
|||||||||||
Right-of-use |
28.4 |
|||||||||||
At December 31 |
Total real estate held for own use and equipment |
2022 |
2021 | ||||||
General account real estate held for own use |
||||||||
Equipment |
||||||||
At December 31 |
Aegon Annual Report on Form 20-F 2022 225 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
General account real estate held for own use |
2022 |
2021 | ||||||
Net book value |
||||||||
At January 1 |
||||||||
Additions |
- | |||||||
Capitalized subsequent expenditure |
||||||||
Disposals |
( |
) | - | |||||
Transfer to investments in real estate |
( |
) | ( |
) | ||||
Unrealized gains/(losses) through equity |
( |
) | ( |
) | ||||
Realized gains/(losses) through income statement |
( |
) | - | |||||
Depreciation through income statement |
( |
) | ( |
) | ||||
Impairment losses |
( |
) | ( |
) | ||||
Net exchange differences |
||||||||
Transfers from disposal groups |
( |
) | - | |||||
Other |
- | |||||||
At December 31 |
||||||||
Gross carrying value |
||||||||
Accumulated depreciation and impairment losses |
( |
) | ( |
) | ||||
Net book value |
||||||||
General account real estate held for own use: |
||||||||
Carrying amount under a historical cost model |
||||||||
% of real estate appraised in the current year |
% | % | ||||||
% of appraisals performed by independent external appraisers |
% | % |
Equipment |
2022 |
2021 | ||||||
Net book value |
||||||||
At January 1 |
||||||||
Additions |
||||||||
Disposals |
( |
) | ( |
) | ||||
Depreciation through income statement |
( |
) | ( |
) | ||||
Impairment losses |
( |
) | ( |
) | ||||
Net exchange differences |
||||||||
Transfers to disposal groups |
( |
) | - | |||||
Other |
( |
) | ||||||
At December 31 |
||||||||
Gross carrying value |
||||||||
Accumulated depreciation and impairment losses |
( |
) | ( |
) | ||||
Net book value |
226 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 28 | ||||
2022 |
2021 | |||||||
Loans to associates |
||||||||
Receivables from policyholders |
||||||||
Receivables from brokers and agents |
||||||||
Receivables from reinsurers |
||||||||
Cash outstanding from assets sold |
||||||||
Trade receivables |
||||||||
Cash collateral |
||||||||
Income tax receivable |
||||||||
Other |
||||||||
Provision for doubtful debts |
( |
) | ( |
) | ||||
At December 31 |
||||||||
Current |
||||||||
Non-current |
2022 |
2021 | |||||||
At January 1 |
( |
) | ( |
) | ||||
Additions charged to earnings |
( |
) | ( |
) | ||||
Unused amounts reversed through the income statement |
||||||||
Disposal of business |
||||||||
Used during the year |
||||||||
Transfers to disposal groups |
- | |||||||
Net exchange differences |
( |
) | ( |
) | ||||
At December 31 |
( |
) |
( |
) |
2022 |
2021 | |||||||
Accrued interest |
||||||||
Other |
||||||||
At December 31 |
||||||||
Current |
||||||||
Non-current |
Aegon Annual Report on Form 20-F 2022 227 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Real estate for | ||||||||||||||||
own use | Equipment | Other | Total | |||||||||||||
Net book value |
||||||||||||||||
At January 1, 2022 |
||||||||||||||||
Additions |
||||||||||||||||
Disposals |
( |
) | - | - | ( |
) | ||||||||||
Modification of lease contracts |
- | - | ||||||||||||||
Depreciation through income statement |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Transfers from disposal groups |
( |
) | - | - | ( |
) | ||||||||||
Net exchange differences |
( |
) | ( |
) | ( |
) | ||||||||||
Other |
( |
) | ( |
) | ||||||||||||
At December 31, 2022 |
||||||||||||||||
Gross carrying value |
||||||||||||||||
Accumulated depreciation and impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net book value 2022 |
||||||||||||||||
Net book value |
||||||||||||||||
At January 1, 2021 |
||||||||||||||||
Additions |
||||||||||||||||
Disposals |
( |
) | ( |
) | ( |
) | ||||||||||
Modification of lease contracts |
- | - | ||||||||||||||
Depreciation through income statement |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net exchange differences |
( |
) | ||||||||||||||
At December 31, 2021 |
||||||||||||||||
Gross carrying value |
||||||||||||||||
Accumulated depreciation and impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net book value 2021 |
228 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 29 | ||||
Future | ||||||||||||||||||||||||
servicing | ||||||||||||||||||||||||
Goodwill | VOBA | rights | Software | Other | Total | |||||||||||||||||||
Net book value |
||||||||||||||||||||||||
At January 1, 2022 |
||||||||||||||||||||||||
Additions |
- | - | - | |||||||||||||||||||||
Amortization through income statement |
- | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
Impairment losses |
- | - | - | - | - | - | ||||||||||||||||||
Shadow accounting adjustments |
- | - | - | - | ||||||||||||||||||||
Business combinations, disposals and other changes |
- | ( |
) | ( |
) | ( |
) | |||||||||||||||||
Net exchange differences |
- | ( |
) | ( |
) | |||||||||||||||||||
Transfers to disposal groups |
( |
) | - | - | ( |
) | ( |
) | ( |
) | ||||||||||||||
At December 31, 2022 |
||||||||||||||||||||||||
Gross carrying value |
||||||||||||||||||||||||
Accumulated amortization, depreciation and impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net book value 2022 |
||||||||||||||||||||||||
Net book value |
||||||||||||||||||||||||
At January 1, 2021 |
||||||||||||||||||||||||
Additions |
- | - | - | |||||||||||||||||||||
Amortization through income statement |
- | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
Impairment losses |
- | - | - | ( |
) | ( |
) | ( |
) | |||||||||||||||
Shadow accounting adjustments |
- | - | - | - | ||||||||||||||||||||
Capital expenditure |
- | - | - | - | ||||||||||||||||||||
Business combinations, disposals and other changes |
- | - | - | ( |
) | ( |
) | |||||||||||||||||
Net exchange differences |
( |
) | ( |
) | ||||||||||||||||||||
At December 31, 2021 |
||||||||||||||||||||||||
Gross carrying value |
||||||||||||||||||||||||
Accumulated amortization, depreciation and impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net book value 2021 |
Aegon Annual Report on Form 20-F 2022 229 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Goodwill |
2022 |
2021 | ||||||
Americas |
||||||||
The Netherlands |
||||||||
United Kingdom |
||||||||
International |
||||||||
Asset Management |
||||||||
At December 31 |
Note |
2022 |
2021 | 2020 | |||||||||||||
Share capital – par value |
30.1 |
|||||||||||||||
Share premium |
30.2 |
|||||||||||||||
Total share capital |
||||||||||||||||
Retained earnings |
||||||||||||||||
Treasury shares |
30.3 |
( |
) | ( |
) | ( |
) | |||||||||
Total retained earnings |
||||||||||||||||
Revaluation reserves 1) |
30.4 |
( |
) | |||||||||||||
Remeasurement of defined benefit plans 2) |
30.5 |
( |
) | ( |
) | ( |
) | |||||||||
Other reserves 3) |
30.6 |
( |
) | |||||||||||||
Total shareholders’ equity |
1 |
Included in the 2022 Revaluation reserves is an amount of EUR ( |
2 |
Included in the 2022 Remeasurement of defined benefit plans is an amount of EUR ( |
3 |
Included in the 2022 Other reserves is an amount of EUR |
230 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 30 | ||||
2022 |
|
2021 |
|
|
2020 |
| ||||||
Share capital transactions relating to common shares |
Number of shares (thousands) |
Number of shares (thousands) |
|
Number of shares (thousands) |
| |||||||
Transactions in 2022: |
||||||||||||
Final dividend 2021 1) |
( |
|||||||||||
Share buyback program (final dividend 2021) |
||||||||||||
Interim dividend 2022 1) |
( |
|||||||||||
Share buyback program (interim dividend 2022) |
||||||||||||
Transactions in 2021: |
||||||||||||
Final dividend 2020 1) |
( |
|||||||||||
Share buyback program (final dividend 2020) |
||||||||||||
Interim dividend 2021 1) |
( |
|||||||||||
Share buyback program (interim dividend 2021) |
||||||||||||
Transactions in 2020: |
||||||||||||
Interim dividend 2020 1) |
( |
|||||||||||
Share buyback program (interim dividend 2020) |
|
|
1 | Dividend distribution paid from treasury shares (note 30.3) |
2022 |
|
2021 |
|
|
2020 |
| ||||||
Common shares |
||||||||||||
Common shares B |
|
|
||||||||||
At December 31 |
Common shares |
2022 |
2021 | 2020 | |||||||||
Authorized share capital |
||||||||||||
Number of authorized shares (in million) |
||||||||||||
Par value in cents per share |
|
|
Common shares B |
2022 |
2021 | 2020 | |||||||||
Authorized share capital |
||||||||||||
Number of authorized shares (in million) |
||||||||||||
Par value in cents per share |
|
|
|
Common shares |
|
|
Common shares B |
| |||||||||||
|
Number of shares (thousands) |
|
|
Total amount |
|
|
Number of shares (thousands) |
|
|
Total amount |
| |||||
At January 1, 2020 |
||||||||||||||||
Shares withdrawn |
( |
) | ( |
) | ( |
) | ( |
|||||||||
Dividend |
|
|
|
- |
|
|
- |
|
|
- |
| |||||
At December 31, 2020 |
||||||||||||||||
Shares withdrawn |
( |
) | ( |
) | ( |
) | ( |
|||||||||
Dividend |
- | - | ||||||||||||||
At December 31, 2021 |
||||||||||||||||
Shares withdrawn |
( |
) | ( |
) | ( |
) | ( |
|||||||||
Dividend |
|
|
||||||||||||||
At December 31, 2022 |
Aegon Annual Report on Form 20-F 2022 231 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
|
Weighted average number of common shares (thousands) |
|
|
Weighted average number of common shares B (thousands) |
| |||
2020 |
||||||||
2021 |
||||||||
2022 |
2022 |
|
2021 |
|
|
2020 |
| ||||||
At January 1 |
||||||||||||
Share dividend |
|
( |
|
|
( |
|
|
( |
| |||
At December 31 |
||||||||||||
Share premium relating to: |
||||||||||||
- Common shares |
||||||||||||
- Common shares B |
|
|
|
|
|
| ||||||
Total share premium |
232 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 30 | ||||
2022 |
|
2021 |
|
|
2020 |
| ||||||||||||||||||
Number of shares (thousands) |
Amount |
|
Number of shares (thousands) |
|
|
Amount |
|
|
Number of shares (thousands) |
|
|
Amount |
| |||||||||||
At January 1 |
||||||||||||||||||||||||
Transactions in 2022: |
||||||||||||||||||||||||
Purchase: 1 transaction, average price EUR 4.92 |
||||||||||||||||||||||||
Sale: 3 transactions, average price EUR 2.46 |
( |
( |
||||||||||||||||||||||
Sale: 1 transaction, average price EUR 3.12 |
( |
( |
||||||||||||||||||||||
Purchase: 1 transaction, average price EUR 4.38 |
||||||||||||||||||||||||
Share withdrawn: 1 transaction, average price EUR 3.70 |
( |
( |
||||||||||||||||||||||
Sale: 1 transaction, average price EUR 3.91 |
( |
( |
||||||||||||||||||||||
Purchase: 1 transaction, average price EUR 4.49 |
||||||||||||||||||||||||
Purchase: 3 transactions, average price EUR 4.58 |
||||||||||||||||||||||||
Transactions in 2021: |
||||||||||||||||||||||||
Sale: transactions, average price 3.90 |
( |
( |
||||||||||||||||||||||
Shares withdrawn: 1 transaction average price 3.89 |
( |
( |
||||||||||||||||||||||
Sale: 1 transaction, average price 3.89 |
( |
( |
||||||||||||||||||||||
Purchase: 1 transaction average price 3.70 |
||||||||||||||||||||||||
Sale: 1 transaction, average price 3.02 |
( |
( |
||||||||||||||||||||||
Purchase: 1 transaction average price 4.46 |
||||||||||||||||||||||||
Transactions in 2020: |
||||||||||||||||||||||||
Sale: transactions, average price 4.52 |
( |
( |
||||||||||||||||||||||
Shares withdrawn: 1 transaction average price 4.52 |
( |
( |
||||||||||||||||||||||
Sale: 1 transaction, average price 4.13 |
( |
( |
||||||||||||||||||||||
Purchase: 1 transaction average price 2.46 |
|
|
|
| ||||||||||||||||||||
At December 31 |
Aegon Annual Report on Form 20-F 2022 233 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 |
|
2021 |
|
|
2020 |
| ||||||||||||||||||
Number of shares (thousands) |
Amount |
|
Number of shares (thousands) |
|
|
Amount |
|
|
Number of shares (thousands) |
|
|
Amount |
| |||||||||||
At January 1 |
||||||||||||||||||||||||
Transactions in 2022: |
||||||||||||||||||||||||
Share withdrawn: 1 transaction, average price EUR 0.10 |
( |
( |
||||||||||||||||||||||
Purchase: 1 transaction, average price EUR 0.12 |
||||||||||||||||||||||||
Transactions in 2021: |
||||||||||||||||||||||||
Sale: 1 transaction, average price 0.10 |
( |
- | ||||||||||||||||||||||
Shares withdrawn: 1 transaction average price 0.10 |
( |
- | ||||||||||||||||||||||
Purchase: 1 transaction average price 0.10 |
||||||||||||||||||||||||
Transactions in 2020: |
||||||||||||||||||||||||
Sale: 1 transaction, average price 0.13 |
( |
- | ||||||||||||||||||||||
Shares withdrawn: 1 transaction average price 0.13 |
( |
( |
||||||||||||||||||||||
Purchase: 1 transaction average price 0.08 |
|
|
|
- |
| |||||||||||||||||||
At December 31 |
As part of their insurance and investment operations, subsidiaries within the Group also hold Aegon N.V. common shares, both for their own account and for account of policyholders. These shares have been treated as treasury shares and are (de) recognized at the consideration paid or received. |
2022 |
|
2021 |
|
|
2020 |
| ||||||||||||||||||
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. |
||||||||||||||||||||||||
Held by subsidiaries |
||||||||||||||||||||||||
Common shares B |
||||||||||||||||||||||||
Held by Aegon N.V. |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
At December 31 |
|
Weighted average number of treasury shares, including treasury shares held by subsidiaries (thousands) |
|
|
Weighted average number of treasury shares B (thousands) |
| |||
2020 |
||||||||
2021 |
||||||||
2022 |
234 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 30 | ||||
|
Available-for-sale investments |
|
|
Real estate held for own use |
|
|
Cash flow hedging reserve |
|
|
Total |
| |||||
At January 1, 2022 |
||||||||||||||||
Gross revaluation |
( |
( |
( |
( |
||||||||||||
Shadow accounting adjustment |
||||||||||||||||
Net (gains) / losses transferred to income statement |
( |
( |
||||||||||||||
Disposal of a business |
- | - | ||||||||||||||
Foreign currency translation differences |
( |
|||||||||||||||
Tax effect |
||||||||||||||||
Transfers to disposal groups |
||||||||||||||||
Other |
|
|
|
- |
|
|
- |
|
|
| ||||||
At December 31, 2022 |
( |
( |
||||||||||||||
At January 1, 2021 |
||||||||||||||||
Gross revaluation |
( |
( |
( |
( |
||||||||||||
Shadow accounting adjustment |
||||||||||||||||
Net (gains) / losses transferred to income statement |
( |
( |
( |
|||||||||||||
Foreign currency translation differences |
||||||||||||||||
Tax effect |
||||||||||||||||
Other |
|
( |
|
|
- |
|
|
- |
|
|
( |
| ||||
At December 31, 2021 |
||||||||||||||||
At January 1, 2020 |
||||||||||||||||
Gross revaluation |
( |
|||||||||||||||
Shadow accounting adjustment |
( |
( |
||||||||||||||
Net (gains) / losses transferred to income statement |
( |
( |
||||||||||||||
Net (gains) / losses transferred to retained earnings |
||||||||||||||||
Foreign currency translation differences |
( |
( |
( |
( |
||||||||||||
Tax effect |
|
( |
|
|
( |
|
|
|
|
( |
| |||||
At December 31, 2020 |
2022 |
2021 | 2020 | ||||||||||
Shares |
||||||||||||
Debt securities |
( |
) | ||||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||
Revaluation reserve for available-for-sale |
( |
) |
Aegon Annual Report on Form 20-F 2022 235 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 |
2021 | 2020 | ||||||||||
At January 1 |
( |
) | ( |
) | ( |
) | ||||||
Remeasurements of defined benefit plans |
( |
) | ||||||||||
Tax effect |
( |
) | ( |
) | ||||||||
Net exchange differences |
( |
) | ( |
) | ||||||||
Total remeasurement of defined benefit plans |
( |
) |
( |
) |
( |
) |
Foreign currency translation reserve |
Net foreign investment hedging reserve |
Equity movements of joint ventures and associates |
Total | |||||||||||||
At January 1, 2022 |
( |
) | ||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves |
( |
) | - | |||||||||||||
Disposal of a business |
( |
) | ||||||||||||||
Tax effect |
( |
) | - | ( |
) | |||||||||||
Equity movements of joint ventures |
- | ( |
) | ( |
) | |||||||||||
Equity movements of associates |
- | |||||||||||||||
Transfers to disposal groups |
- | |||||||||||||||
At December 31, 2022 |
( |
) |
( |
) |
||||||||||||
At January 1, 2021 |
) | ( |
) | ) | ||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves |
( |
) | - | |||||||||||||
Disposal of a business |
( |
) | - | |||||||||||||
Tax effect |
( |
) | - | |||||||||||||
Equity movements of joint ventures |
- | - | ||||||||||||||
Equity movements of associates |
- | - | ( |
) | ( |
) | ||||||||||
At December 31, 2021 |
( |
) |
||||||||||||||
At January 1, 2020 |
( |
) | ||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves |
( |
) | - | ( |
) | |||||||||||
Disposal of a business |
( |
) | ( |
) | ( |
) | ||||||||||
Tax effect |
( |
) | - | ( |
) | |||||||||||
Equity movements of joint ventures |
- | - | ||||||||||||||
Equity movements of associates |
- | - | ||||||||||||||
At December 31, 2020 |
( |
) |
( |
) |
( |
) |
236 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 31 | ||||
Perpetual contingent convertible securities |
Junior perpetual capital securities |
Perpetual cumulative subordinated bonds |
Long Term Incentive Plans 1) |
Total | ||||||||||||||||
At January 1, 2022 |
||||||||||||||||||||
Shares granted |
||||||||||||||||||||
Shares vested |
( |
) | ( |
) | ||||||||||||||||
Securities redeemed |
( |
) | ( |
) | ||||||||||||||||
At December 31, 2022 |
||||||||||||||||||||
At January 1, 2021 |
||||||||||||||||||||
Shares granted |
- | - | - | |||||||||||||||||
Shares vested |
- | - | - | ( |
) | ( |
) | |||||||||||||
Securities redeemed |
- | ( |
) | - | - | ( |
) | |||||||||||||
At December 31, 2021 |
||||||||||||||||||||
At January 1, 2020 |
||||||||||||||||||||
Shares granted |
- | - | - | |||||||||||||||||
Shares vested |
- | - | - | ( |
) | ( |
) | |||||||||||||
At December 31, 2020 |
1 |
Long Term 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 | 2022 |
2021 | 2020 | ||||||||||||||||||
1) |
||||||||||||||||||||||||
At December 31 |
1 |
The coupon is fixed at |
Junior perpetual capital securities |
Coupon rate | Coupon date | Year of next call | 2022 |
2021 | 2020 | ||||||||||||||||||
million |
1) |
|||||||||||||||||||||||
million |
2) |
|||||||||||||||||||||||
million |
3) |
|||||||||||||||||||||||
At December 31 |
1 |
2 | ten-year US dollar interest rate swap yield plus a spread of ten basis points, with a maximum of |
3 | ten-year Dutch government bond yield plus a spread of ten basis points, with a maximum of |
Aegon Annual Report on Form 20-F 2022 237 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Perpetual cumulative subordinated bonds |
Coupon rate | Coupon date | Year of next call | 2022 |
2021 | 2020 | ||||||||||||||||
1), 4) |
||||||||||||||||||||||
2), 4) |
||||||||||||||||||||||
3), 4) |
||||||||||||||||||||||
At December 31 |
1 | The coupon of the EUR |
2 | The coupon of the EUR |
3 | The coupon of the EUR |
4 | ten-year Dutch government securities plus a spread of basis points. |
Coupon rate | Coupon date | Issue /Maturity | Year of next call | 2022 |
2021 | |||||||||||||||||
Fixed to floating subordinated notes |
||||||||||||||||||||||
EUR |
2) |
|||||||||||||||||||||
USD |
3) |
-annually, April 11 |
||||||||||||||||||||
Fixed subordinated notes |
||||||||||||||||||||||
USD 1) |
||||||||||||||||||||||
At December 31 |
||||||||||||||||||||||
Fair value of subordinated borrowings |
1 |
Issued by a subsidiary of, and guaranteed by Aegon N.V. |
2 |
The coupon is fixed at |
3 |
The coupon is fixed at |
Coupon rate | Coupon date | Issue /Maturity | Year of next call | 2022 |
2021 | |||||||||||||||||
USD 225 million 1) |
, December 1 |
n.a. | ||||||||||||||||||||
USD 190 million 1) |
, November 15 |
n.a. | ||||||||||||||||||||
At December 31 |
||||||||||||||||||||||
Fair value of trust pass-through securities |
1 |
Issued by a subsidiary of, and guaranteed by Aegon N.V. |
238 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 34 | ||||
Aegon Annual Report on Form 20-F 2022 239 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 1) |
2021 1) |
|||||||||||||||
Estimated approximate effect |
On shareholders’ equity |
On net result |
On shareholders’ equity |
On net result | ||||||||||||
20% increase in lapse rates |
( |
) | ||||||||||||||
20% decrease in lapse rates |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
5% increase in mortality rates |
( |
) | ( |
) | ||||||||||||
5% decrease in mortality rates |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
10% increase in morbidity rates |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
10% decrease in morbidity rates |
1 |
Includes the approximate effects of the disposal group |
2022 |
2021 | |||||||
Life insurance |
||||||||
Non-life insurance |
||||||||
- Unearned premiums and unexpired risks |
||||||||
- Outstanding claims |
||||||||
- Incurred but not reported claims |
||||||||
Incoming reinsurance |
||||||||
At December 31 |
2022 |
2021 | |||||||
Non-life insurance: |
||||||||
- Accident and health insurance |
||||||||
- General insurance |
||||||||
Total non-life insurance |
Movements during the year in life insurance: |
2022 |
2021 | ||||||
At January 1 |
||||||||
Disposals |
( |
) | - | |||||
Portfolio transfers and acquisitions |
( |
) | ( |
) | ||||
Gross premium and deposits – existing and new business |
||||||||
Unwind of discount / interest credited |
||||||||
Insurance liabilities released |
( |
) | ( |
) | ||||
Changes in valuation of expected future benefits |
( |
) | ( |
) | ||||
Loss recognized as a result of liability adequacy testing |
( |
) | ( |
) | ||||
Shadow accounting adjustments |
( |
) | ( |
) | ||||
Net exchange differences |
||||||||
Transfer (to) / from reinsurance assets |
||||||||
Transfers to disposal groups |
( |
) | - | |||||
Other |
||||||||
At December 31 |
240 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 34 | ||||
Sensitivity analysis of net result and shareholders’ equity |
Estimated approximate effects on net result |
Estimated approximate effects on shareholders’ equity |
||||||
2022 1) |
||||||||
Shift up 50 basis points - Bond credit spreads |
( |
) | ( |
) | ||||
Shift down 50 basis points - Bond credit spreads |
||||||||
Shift up 50 basis points - Mortgage spreads |
( |
) | ( |
) | ||||
Shift down 50 basis points - Mortgage spreads |
||||||||
Shift up 5 basis points - Liquidity premium |
||||||||
Shift down 5 basis points - Liquidity premium |
( |
) | ( |
) | ||||
2021 1) |
||||||||
Shift up 50 basis points - Bond credit spreads |
( |
) | ( |
) | ||||
Shift down 50 basis points - Bond credit spreads |
||||||||
Shift up 50 basis points - Mortgage spreads |
( |
) | ( |
) | ||||
Shift down 50 basis points - Mortgage spreads |
||||||||
Shift up 5 basis points - Liquidity premium |
||||||||
Shift down 5 basis points - Liquidity premium |
( |
) | ( |
) |
1 |
Includes the approximate effects of the disposal group |
Movements during the year in non-life insurance: |
2022 |
2021 | ||||||
At January 1 |
||||||||
Disposals |
( |
) | ( |
) | ||||
Portfolio transfers and acquisitions |
||||||||
Gross premiums – existing and new business |
||||||||
Unwind of discount / interest credited |
||||||||
Insurance liabilities released |
( |
) | ( |
) | ||||
Changes in valuation of expected future claims |
( |
) | ||||||
Change in unearned premiums |
( |
) | ( |
) | ||||
Change in unexpired risks |
- | |||||||
Incurred related to current year |
||||||||
Incurred related to prior years |
||||||||
Release for claims settled current year |
( |
) | ( |
) | ||||
Release for claims settled prior years |
( |
) | ( |
) | ||||
Shadow accounting adjustments |
( |
) | ( |
) | ||||
Change in IBNR |
( |
) | ( |
) | ||||
Net exchange differences |
||||||||
Transfers to disposal groups |
( |
) | - | |||||
Other |
( |
) | ||||||
At December 31 |
Movements during the year in incoming reinsurance: |
2022 |
2021 | ||||||
At January 1 |
||||||||
Gross premium and deposits – existing and new business |
||||||||
Unwind of discount / interest credited |
||||||||
Insurance liabilities released |
( |
) | ( |
) | ||||
Changes in valuation of expected future benefits |
( |
) | ||||||
Shadow accounting adjustments |
( |
) | ( |
) | ||||
Loss recognized as a result of liability adequacy |
( |
) | ( |
) | ||||
Net exchange differences |
||||||||
Other |
( |
) | ( |
) | ||||
At December 31 |
Aegon Annual Report on Form 20-F 2022 241 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
Insurance contracts for account of policyholders |
2022 |
2021 | ||||||
At January 1 |
||||||||
Disposal of a business |
( |
) | - | |||||
Portfolio transfers and acquisitions |
( |
) | ( |
) | ||||
Gross premium and deposits – existing and new business |
||||||||
Unwind of discount / interest credited |
( |
) | ||||||
Insurance liabilities released |
( |
) | ( |
) | ||||
Fund charges released |
( |
) | ( |
) | ||||
Changes in valuation of expected future benefits |
( |
) | ( |
) | ||||
Transfer (to) / from insurance contracts |
( |
) | ||||||
Net exchange differences |
||||||||
Transfers to disposal groups |
( |
) | - | |||||
Other |
||||||||
At December 31 |
Without discretionary participation features |
With discretionary participation features |
Total | ||||||||||
At January 1, 2022 |
||||||||||||
Deposits |
||||||||||||
Withdrawals |
( |
) | ( |
) | ||||||||
Investment contracts liabilities released |
( |
) | ( |
) | ||||||||
Interest credited |
||||||||||||
Net exchange differences |
( |
) | ||||||||||
Transfer (to)/from other headings |
||||||||||||
Transfers to disposal groups |
( |
) | ( |
) | ||||||||
Other |
( |
) | ( |
) | ||||||||
At December 31, 2022 |
||||||||||||
At January 1, 2021 |
||||||||||||
Deposits |
- | |||||||||||
Withdrawals |
( |
) | - | ( |
) | |||||||
Investment contracts liabilities released |
- | ( |
) | ( |
) | |||||||
Interest credited |
- | |||||||||||
Net exchange differences |
||||||||||||
Transfer (to)/from other headings |
- | |||||||||||
Other |
( |
) | ( |
) | ||||||||
At December 31, 2021 |
Investment contracts consist of the following: |
2022 |
2021 | ||||||
Institutional guaranteed products |
||||||||
Fixed annuities |
||||||||
Savings accounts |
||||||||
Investment contracts with discretionary participation features |
||||||||
Other |
||||||||
At December 31 |
242 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 36 | ||||
Without discretionary participation features |
With discretionary participation features |
Total | ||||||||||||||
At January 1, 2022 |
||||||||||||||||
Gross premium and deposits – existing and new business |
||||||||||||||||
Withdrawals |
( |
) | - | ( |
) | |||||||||||
Disposal of a business |
( |
) | - | ( |
) | |||||||||||
Interest credited |
( |
) | ( |
) | ( |
) | ||||||||||
Investment contracts liabilities released |
- | ( |
) | ( |
) | |||||||||||
Fund charges released |
( |
) | - | ( |
) | |||||||||||
Net exchange differences |
( |
) | ( |
) | ||||||||||||
Transfer (to)/from other headings |
( |
) | - | ( |
) | |||||||||||
Transfers to disposal groups |
( |
) | - | ( |
) | |||||||||||
Other |
||||||||||||||||
At December 31, 2022 |
||||||||||||||||
At January 1, 2021 |
||||||||||||||||
Gross premium and deposits – existing and new business |
||||||||||||||||
Withdrawals |
( |
) | - | ( |
) | |||||||||||
Interest credited |
||||||||||||||||
Investment contracts liabilities released |
- | ( |
) | ( |
) | |||||||||||
Fund charges released |
( |
) | - | ( |
) | |||||||||||
Net exchange differences |
||||||||||||||||
Transfer (to)/from other headings |
( |
) | ( |
) | ( |
) | ||||||||||
Other |
||||||||||||||||
At December 31, 2021 |
a. | Financial guarantees: these guarantees are treated as bifurcated embedded derivatives, valued at fair value and presented as derivatives (refer to note 2.9 and note 44 Fair value); |
b. | Total return annuities: these guarantees are not bifurcated from their host contracts because they are presented and valued at fair value together with the underlying insurance contracts (refer to note 2.19); |
c. | Life contingent guarantees in the United States: these guarantees are not bifurcated from their host contracts, presented and valued in accordance with insurance accounting together with the underlying insurance contracts (refer to note 2.19); and |
d. | Minimum investment return guarantees in the Netherlands: these guarantees are not bifurcated from their host contracts, valued at fair value and presented together with the underlying insurance contracts (refer to note 2.19 and note 51). |
Aegon Annual Report on Form 20-F 2022 243 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 |
2021 | |||||||||||||||||||||||||||||||
United States 1) |
The Netherlands 2) |
Total 3) |
United States 1) |
The Netherlands 2) |
Total 3) |
|||||||||||||||||||||||||||
At January 1 |
||||||||||||||||||||||||||||||||
Incurred guarantee benefits 4) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Paid guarantee benefits |
( |
) | ( |
) | ( |
) | - | ( |
) | |||||||||||||||||||||||
Net exchange differences |
- | |||||||||||||||||||||||||||||||
Transfers to disposal groups |
( |
) | ( |
) | - | - | - | |||||||||||||||||||||||||
At December 31 |
||||||||||||||||||||||||||||||||
Account value 5) |
||||||||||||||||||||||||||||||||
Net amount at risk 6) |
1 |
Guaranteed minimum accumulation and withdrawal benefits. |
2 |
Fund plan and unit-linked guarantees. |
3 |
Balances are included in the derivatives liabilities on the face of the statement of financial position; refer to note 24 Derivatives. |
4 |
Incurred guarantee benefits mainly comprise the effect of guarantees from new contracts, releases related to expired out-of-the-money |
5 |
Account value reflects the actual fund value for the policyholders. |
6 |
The net amount at risk represents the sum of the positive differences between the discounted maximum amount payable under the guarantees and the account value. |
244 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 36 | ||||
2022 |
2021 | |||||||||||||||||||||||
GMDB 1) |
GMIB 2) |
Total 4) |
GMDB 1) |
GMIB 2) |
Total 4) |
|||||||||||||||||||
At January 1 |
||||||||||||||||||||||||
Incurred guarantee benefits 5) |
( |
) | ( |
) | ||||||||||||||||||||
Paid guarantee benefits |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net exchange differences |
||||||||||||||||||||||||
At December 31 |
||||||||||||||||||||||||
GMDB 1) ,3) |
GMIB 2) ,3) |
GMDB 1) ,3) |
GMIB 2) ,3) |
|||||||||||||||||||||
Account value 6) |
||||||||||||||||||||||||
Net amount at risk 7) |
||||||||||||||||||||||||
Average attained age of contract holders |
1 |
Guaranteed minimum death benefit in the United States. |
2 |
Guaranteed minimum income benefit in the United States. |
3 |
Note that the variable annuity contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. |
4 |
Balances are included in the insurance liabilities on the face of the statement of financial position; refer to note 34 Insurance contracts. |
5 |
Incurred guarantee benefits mainly comprise the effect of guarantees from new contracts, releases related to expired out-of-the-money |
6 |
Account value reflects the actual fund value for the policyholders. |
7 |
The net amount at risk is defined as the present value of the minimum guaranteed annuity payments available to the contract holder determined in accordance with the terms of the contract in excess of the current account balance. |
Aegon Annual Report on Form 20-F 2022 245 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 |
2021 | |||||||
Capital funding |
||||||||
Operational funding |
||||||||
At December 31 |
||||||||
Current |
||||||||
Non-current |
||||||||
Fair value of borrowings |
246 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 37 | ||||
(sorted by maturity) |
Coupon rate | Coupon date | Issue /Maturity | 2022 |
2021 | |||||||||||||||
EUR 500 million Senior Unsecured Notes |
||||||||||||||||||||
GBP 250 million Medium-Term Notes |
||||||||||||||||||||
GBP 400 million Senior Unsecured Notes |
||||||||||||||||||||
Other |
||||||||||||||||||||
At December 31 |
Coupon rate | Coupon date | Issue /Maturity | 2022 |
2021 | ||||||||||||||||
Revolving Loan Facility Warehouse Mortgage Loans 1) |
||||||||||||||||||||
Revolving Loan Facility Warehouse Mortgage Loans 1) |
||||||||||||||||||||
EUR 875 million “SAECURE 16” RMBS Note 1) , 2) |
||||||||||||||||||||
EUR 512 million “SAECURE 18” RMBS Note 1) , 3) |
||||||||||||||||||||
EUR 657 million “SAECURE 20” RMBS Note 1) , 4) |
||||||||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 1) , 5) |
||||||||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 1) , 6) |
||||||||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 1) , 7) |
||||||||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 1) , 8) |
||||||||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 1) , 9) |
||||||||||||||||||||
FHLB Secured borrowings 1) |
||||||||||||||||||||
Aegon Bank Senior Non-Preferred debt 1) |
||||||||||||||||||||
Other |
||||||||||||||||||||
At December 31 |
1 |
Issued by a subsidiary of Aegon N.V. |
2 |
The first optional redemption date is October 30, 2023; the final legal maturity date is October 30, 2091. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments. |
3 |
The first optional redemption date is July 28, 2025; the final legal maturity date is April 28, 2092. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments. |
4 |
The first optional redemption date is October 28, 2027; the final legal maturity date is April 28, 2093. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments. |
5 |
The maturity date is May 25, 2023; the extended due for payment date is May 25, 2055. |
6 |
The maturity date is November 21, 2024; the extended due for payment date is November 21, 2056. |
7 |
The maturity date is November 16, 2025; the extended due for payment date is November 16, 2057. |
8 |
The maturity date is June 27, 2027; the extended due for payment date is June 27, 2059. |
9 |
The maturity date is June 9, 2036; the extended due for payment date is June 9, 2037. |
Other |
Undrawn committed borrowing facilities: |
2022 |
2021 | ||||||
Floating-rate |
||||||||
- Expiring within one year |
||||||||
- Expiring beyond one year |
||||||||
At December 31 |
There were no defaults or breaches of conditions during the period. |
Aegon Annual Report on Form 20-F 2022 247 |
![]() |
About Aegon Governance and risk management Financial information Non-financial information | |||
2022 |
2021 | |||||||
At January 1 |
|
|
||||||
Additional provisions |
||||||||
Disposals |
( |
) | ( |
) | ||||
Unused amounts reversed through the income statement |
( |
) | ||||||
Used during the year |
( |
) | ( |
) | ||||
Net exchange differences |
||||||||
Transfer to disposal groups |
( |
) | - | |||||
At December 31 |
||||||||
Current |
||||||||
Non-current |
2022 |
2021 | |||||||
Retirement benefit plans |
|
|
||||||
Other post-employment benefit plans |
||||||||
Total defined benefit plans |
||||||||
Retirement benefit plans in surplus |
||||||||
Total defined benefit assets |
||||||||
Retirement benefit plans in deficit |
||||||||
Other post-employment benefit plans in deficit |
||||||||
Total defined benefit liabilities |
2022 | 2021 | |||||||||||||||||||||||
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 | ||||||||||||||||||
At January 1 |
|
|
|
|
|
|
||||||||||||||||||
Defined benefit expenses |
( |
) | ||||||||||||||||||||||
Remeasurements of defined benefit plans |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
|||||||||||||
Contributions paid |
( |
) | ( |
) | ( |
) | - | ( |
||||||||||||||||
Benefits paid |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
|||||||||||||
Net exchange differences |
||||||||||||||||||||||||
Transfer to disposal groups |
( |
) | ( |
) | ( |
) | - | - | - | |||||||||||||||
Other |
( |
) | - | ( |
||||||||||||||||||||
At December 31 |
The amounts recognized in the statement of financial position are determined as follows: |
248 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 39 | ||||
2022 |
2021 | |||||||||||||||||||||||
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 |
||||||||||||||||||||||||
Fair value of plan assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
- |
( |
) |
- |
( |
) | |||||||||||||||||||
Present value of wholly unfunded obligations |
||||||||||||||||||||||||
At December 31 |
The fair value of Aegon’s own transferable financial instruments included in plan assets and the fair value of other assets used by Aegon included in plan assets was nil in both 2022 and 2021. |
2022 |
2021 | |||||||||||||||||||||||
Defined benefit expenses |
Retirement benefit plans |
Other post- employment benefit plans |
Total |
Retirement benefit plans |
Other post- employment benefit plans |
Total | ||||||||||||||||||
Current year service cost |
||||||||||||||||||||||||
Net interest on the net defined benefit liability (asset) |
||||||||||||||||||||||||
Past service cost |
( |
( |
( |
- | ( |
|||||||||||||||||||
Total defined benefit expenses |
( |
2020 | ||||||||||||
Retirement benefit plans |
Other post- employment benefit plans |
Total | ||||||||||
Current year service cost |
||||||||||||
Net interest on the net defined benefit liability (asset) |
||||||||||||
Past service cost |
- | |||||||||||
Total defined benefit expenses |
Defined benefit expenses are included in ‘Commissions and expenses’ in the income statement. |
Movements during the year of the present value of the defined benefit obligations |
2022 |
2021 | ||||||
At January 1 |
||||||||
Current year service cost |
||||||||
Interest expense |
||||||||
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 |
( |
) | ( |
) | ||||
Past service cost |
( |
) | ( |
) | ||||
Benefits paid |
( |
) | ( |
) | ||||
Amounts paid in respect of settlements |
- | ( |
) | |||||
Net exchange differences |
||||||||
Transfer to disposal groups |
( |
) | - | |||||
Other |
( |
) | ||||||
At December 31 |
Aegon Annual Report on Form 20-F 2022 249 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Movements during the year in plan assets for retirement benefit plans |
2022 |
2021 | ||||||
At January 1 |
|
|||||||
Interest income (based on discount rate) |
||||||||
Remeasurements of the net defined liability (asset) |
( |
) | ||||||
Contributions by employer |
||||||||
Benefits paid |
( |
) | ( |
) | ||||
Amounts paid in respect of settlements |
- | ( |
) | |||||
Net exchange differences |
||||||||
At December 31 |
2022 |
2021 | |||||||||||||||||||||||||||||||
Breakdown of plan assets for retirement benefit plans |
Quoted |
Unquoted |
Total |
in % of total plan asdsets |
Quoted | Unquoted | Total | in % of total plan assets |
||||||||||||||||||||||||
Equity instruments |
- | - | - | % | - | - | - | % | ||||||||||||||||||||||||
Debt instrument |
% | % | ||||||||||||||||||||||||||||||
Real estate |
- | - | - | % | - | % | ||||||||||||||||||||||||||
Derivatives |
- | ( |
) | ( |
) | ( |
%) | - | ( |
) | ( |
) | ( |
%) | ||||||||||||||||||
Investment funds |
- | % | - | % | ||||||||||||||||||||||||||||
Structured securities |
- | % | - | - | - | % | ||||||||||||||||||||||||||
Other |
- | % | % | |||||||||||||||||||||||||||||
At December 31 |
% |
% |
250 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 39 | ||||
Actuarial assumptions used to determine defined benefit obligations at year-end |
2022 |
2021 | ||||||
Demographic actuarial assumptions |
||||||||
Mortality |
1) |
1) |
||||||
Financial actuarial assumptions |
||||||||
Discount rate |
||||||||
Salary increase rate |
||||||||
Health care trend rate |
1 |
2022 assumption -PRI-2012 MP-2021. Comparative figures are as included in the Annual Report 2021. |
Aegon Annual Report on Form 20-F 2022 | 251 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Estimated approximate effects on the defined benefit obligation |
||||||
2022 |
2021 | |||||
Demographic actuarial assumptions |
||||||
10% increase in mortality rates |
( |
( |
) | |||
10% decrease in mortality rates |
||||||
Financial actuarial assumptions |
||||||
100 basis points increase in discount rate |
( |
( |
) | |||
100 basis points decrease in discount rate |
||||||
100 basis points increase in salary increase rate |
||||||
100 basis points decrease in salary increase rate |
( |
|||||
100 basis points increase in health care trend rate |
||||||
100 basis points decrease in health care trend rate |
( |
( |
) |
Target allocation of plan assets for retirement benefit plans for the next annual period is: |
||||
Equity instruments |
||||
Debt instruments |
||||
Other |
252 |
Notes to the consolidated financial statements Note 40 | ||||
Actuarial assumptions used to determine defined benefit obligations at year-end |
2022 |
2021 | ||||||
Demographic actuarial assumptions |
||||||||
Mortality |
1) |
2) |
||||||
Financial actuarial assumptions |
||||||||
Discount rate |
||||||||
Price inflation |
1 |
Club Vita tables based on analysis of Scheme membership CMI 2021 %/ % p.a. (males/females) |
2 |
Club Vita tables based on analysis of Scheme membership CMI 2019 %/ % p.a. (males/females) |
Estimated approximate effects on the defined benefit obligation |
||||||||
2022 |
2021 | |||||||
Demographic actuarial assumptions |
||||||||
10% increase in mortality rates |
( |
( |
||||||
10% decrease in mortality rates |
||||||||
Financial actuarial assumptions |
||||||||
100 basis points increase in discount rate |
( |
( |
||||||
100 basis points decrease in discount rate |
||||||||
100 basis points increase in price inflation |
||||||||
100 basis points decrease in price inflation |
( |
( |
Target allocation of plan assets for retirement benefit plans for the next annual period is: | ||
Equity instruments |
||
Debt instruments |
All other operating segments |
||||||||
Businesses included in all other operating segments mo stly operate defined contribution plans. Please refer to note 14 Commissions and expenses for the employee expenses regarding these contribution plans. |
40 Deferred tax |
2022 |
2021 | |||||||||||
Deferred tax assets | ||||||||||||
Deferred tax liabilities |
||||||||||||
Total net deferred tax liability / (asset) |
( |
Aegon Annual Report on Form 20-F 2022 | 253 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Deferred tax assets comprise temporary differences on: |
2022 |
2021 | ||||||
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 |
||||||||
At December 31 |
Deferred tax liabilities comprise temporary differences on: |
2022 |
2021 | ||||||
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 |
|
( |
) | |||||
At December 31 |
Real estate |
Financial assets |
Insurance and invest- ment contracts |
Deferred expens- es, VOBA and other intangible assets |
Defined benefit plans |
Tax losses and credits carried forward |
Other |
Total |
|||||||||||||||||||||||||
At January 1, 2022 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Charged to income statement |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Charged to OCI |
( |
) | ( |
) | - | - | - | ( |
) | |||||||||||||||||||||||
Net exchange differences |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Disposal of a business |
( |
) | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||
Transfers to disposal groups |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Transfer (to)/from current income tax |
- | - | - | - | - | - | ||||||||||||||||||||||||||
Transfer (to) /from other headings |
- | ( |
) | - | - | - | ( |
) | ( |
) | ||||||||||||||||||||||
Other |
- | - | - | - | - | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||
At December 31, 2022 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
At January 1, 2021 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Charged to income statement |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Charged to OCI |
( |
) | ( |
) | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||
Net exchange differences |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Transfer (to)/from current income tax |
- | - | - | - | - | - | ||||||||||||||||||||||||||
Transfer (to)/from other headings |
- | ( |
) | - | - | - | ( |
) | - | |||||||||||||||||||||||
At December 31, 2021 |
( |
) |
( |
) |
( |
) |
( |
) |
254 |
Notes to the consolidated financial statements Note 40 | ||||
Gross amounts 1) |
Not recognized deferred tax assets |
|||||||||||||||
2022 |
2021 |
2022 |
2021 | |||||||||||||
< 5 years |
||||||||||||||||
≥ 5 – 10 years |
||||||||||||||||
≥ 10 – 15 years |
- |
- |
||||||||||||||
≥ 15 – 20 years |
- |
- |
- |
- |
||||||||||||
Indefinitely |
||||||||||||||||
At December 31 |
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 |
Gross amounts |
Deferred tax assets |
|||||||||||||||
2022 |
2021 |
2022 |
2021 | |||||||||||||
Deferred corporate income tax asset dependent on retaining bonds and similar investments until the earlier of market recovery or maturity |
- |
|||||||||||||||
Deferred corporate income tax asset dependent on future taxable profits |
||||||||||||||||
At December 31 |
Aegon Annual Report on Form 20-F 2022 | 255 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
2022 |
2021 |
|||||||
Payables due to policyholders |
||||||||
Payables due to brokers and agents |
||||||||
Payables out of reinsurance |
||||||||
Social security and taxes payable |
||||||||
Income tax payable |
||||||||
Investment creditors |
||||||||
Cash collateral on derivative transactions |
||||||||
Cash collateral on securities lended |
||||||||
Cash collateral - other |
||||||||
Repurchase agreements |
||||||||
Lease liabilities |
||||||||
Other creditors |
||||||||
At December 31 |
||||||||
Current |
||||||||
Non-current |
2022 |
2021 |
|||||||
Accrued interest |
||||||||
Accrued expenses |
||||||||
At December 31 |
256 |
Notes to the consolidated financial statements Note 43 | ||||
December 31, 2022 1) |
December 31, 2021 | |||||||
US RBC ratio |
||||||||
NL Life Solvency II ratio |
||||||||
Scottish Equitable Plc (UK) Solvency II ratio |
1 |
The capital ratios are estimates and are not final until filed with the respective supervisory authority. |
Aegon Annual Report on Form 20-F 2022 | 257 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
December 31, 2022 1) |
December 31, 2021 | |||||||
Group Own Funds |
||||||||
Group SCR |
||||||||
Group Solvency II ratio |
1 |
The Solvency II ratios are estimates and are not final until filed with the respective supervisory authority. |
258 |
Notes to the consolidated financial statements Note 43 | ||||
2022 |
2021 | |||||||||||||||
Available Own Funds |
Available Own Funds |
Percentage total |
Available Own Funds |
Percentage total |
||||||||||||
Tier 1 (Unrestricted Tier 1 + Restricted Tier 1) |
||||||||||||||||
Unrestricted Tier 1 |
||||||||||||||||
Restricted Tier 1 |
||||||||||||||||
Junior Perpetual Capital Securities |
||||||||||||||||
Perpetual Cumulative Securities |
||||||||||||||||
Perpetual Contingent Convertible Securities |
||||||||||||||||
Tier 2 |
||||||||||||||||
Subordinated notes issued by AFC |
||||||||||||||||
Subordinated liabilities Aegon NV |
||||||||||||||||
Grandfathered subordinated notes |
||||||||||||||||
Tier 3 |
||||||||||||||||
Total Available Own Funds |
Aegon Annual Report on Form 20-F 2022 | 259 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
2022 |
2021 | |||||||
IFRS Shareholders’ Equity |
||||||||
IFRS adjustments for Other Equity instruments and non controlling interests |
||||||||
IFRS Group Equity |
||||||||
Solvency II revaluations & reclassifications |
( |
) | ||||||
Transferability restrictions 1) |
( |
) | ( |
) | ||||
Excess of Assets over Liabilities |
||||||||
Availability adjustments |
||||||||
Tiering restriction |
( |
) | ||||||
Fungibility adjustments |
( |
) | ( |
) | ||||
Eligible Own Funds |
1 |
This includes the transferability restriction related to the RBC CAL conversion methodology. |
◆ |
Items that are not recognized under Solvency II. The most relevant examples of this category for Aegon include Goodwill, deferred policy acquisition costs (DPAC) and other intangible assets (EUR |
◆ |
Items that have a different valuation treatment between IFRS and Solvency II. Solvency II is a market consistent framework hence all assets and liabilities are to be presented at fair value while IFRS also includes other valuation treatments in addition to fair value. The most relevant examples of this category for Aegon Group include loans and mortgages, reinsurance recoverables, and technical provisions. The revaluation difference stemming from this category amounted to EUR |
◆ |
The Net Asset Value of subsidiaries that are included under the D&A method (on provisional equivalence or Standard Formula basis) in the Group Solvency II results. The revaluation difference stemming from this category amounted to EUR |
◆ |
Reclassification of subordinated liabilities of EUR |
◆ |
Shareholders’ equity excluding revaluation reserves based on IFRS as adopted by the EU; |
◆ |
Non-controlling interests and Long Term Incentive Plans not yet vested; and |
◆ |
Total financial leverage. |
260 |
Notes to the consolidated financial statements Note 43 | ||||
Note |
2022 |
2021 | ||||||||||
Total shareholders’ equity - based on IFRS as adopted by the EU |
30 |
|||||||||||
Non-controlling interests and Long Term Incentive Plans not yet vested |
31, SOFP 2) |
|||||||||||
Revaluation reserves |
30 |
( |
) | |||||||||
Adjusted shareholders’ equity |
||||||||||||
Perpetual contingent convertible securities |
31 |
|||||||||||
Junior perpetual capital securities |
31 |
|||||||||||
Perpetual cumulative subordinated bonds |
31 |
|||||||||||
Fixed floating subordinated notes |
32 |
|||||||||||
Fixed subordinated notes |
32 |
|||||||||||
Trust pass-through securities |
33 |
|||||||||||
Currency revaluation other equity instruments 1) |
||||||||||||
Hybrid leverage |
||||||||||||
Senior debt 3) |
37 |
|||||||||||
Senior leverage |
||||||||||||
Total gross financial leverage |
||||||||||||
Total capitalization |
||||||||||||
Gross financial leverage ratio |
||||||||||||
Fixed Charge Coverage |
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 |
2022 |
2021 | ||||||
Equity attributable to shareholders based on IFRS as adopted by the EU |
||||||||
Non-distributable items: |
||||||||
Share capital |
( |
( |
||||||
Legal reserves 1) |
( |
( |
||||||
At December 31 |
1 |
The legal reserves in respect of the foreign currency translation reserve (FCTR), group companies and the positive revaluations in the revaluation reserves, cannot be freely distributed. |
Distributable reserves |
2022 |
2021 | ||||||
Reserves available for financial surpervision purposes |
||||||||
Solvency requirement under the Financial Supervision Act |
||||||||
Total distributable reserves on the basis of solvency requirements |
Aegon Annual Report on Form 20-F 2022 | 261 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
262 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 44 | ||||
Level I |
Level II |
Level III |
Total 2022 | |||||||||||||
Assets carried at fair value |
||||||||||||||||
Available-for-sale |
||||||||||||||||
Shares |
||||||||||||||||
Debt securities |
||||||||||||||||
Money market and other short-term instruments |
||||||||||||||||
Other investments at fair value |
||||||||||||||||
Fair value through profit or loss |
||||||||||||||||
Shares |
||||||||||||||||
Debt securities |
||||||||||||||||
Money market and other short-term instruments |
||||||||||||||||
Other investments at fair value |
||||||||||||||||
Investments for account of policyholders 1) |
||||||||||||||||
Derivatives |
||||||||||||||||
Investments in real estate |
||||||||||||||||
Investments in real estate for policyholders |
||||||||||||||||
Revalued amounts |
||||||||||||||||
Real estate held for own use |
||||||||||||||||
- |
- |
|||||||||||||||
Total assets at fair value |
||||||||||||||||
Liabilities carried at fair value |
||||||||||||||||
Investment contracts for account of policyholders 2) |
||||||||||||||||
Derivatives |
||||||||||||||||
Total liabilities at fair value |
1 |
The investments for account of policyholders include investments carried at fair value through profit or loss. |
Level I |
Level II |
Level III |
Total 2021 | |||||||||||||
Assets carried at fair value |
||||||||||||||||
Available-for-sale |
||||||||||||||||
Shares |
||||||||||||||||
Debt securities |
||||||||||||||||
Money market and other short-term instruments |
- |
|||||||||||||||
Other investments at fair value |
- |
|||||||||||||||
Fair value through profit or loss |
||||||||||||||||
Shares |
||||||||||||||||
Debt securities |
||||||||||||||||
Money market and other short-term instruments |
- |
|||||||||||||||
Other investments at fair value |
||||||||||||||||
Investments for account of policyholders 1) |
||||||||||||||||
Derivatives |
||||||||||||||||
Investments in real estate |
- |
- |
||||||||||||||
Investments in real estate for policyholders |
- |
- |
||||||||||||||
Revalued amounts |
||||||||||||||||
Real estate held for own use |
- |
- |
||||||||||||||
- |
- |
|||||||||||||||
Total assets at fair value |
||||||||||||||||
Liabilities carried at fair value |
||||||||||||||||
Investment contracts for account of policyholders 2) |
- |
( |
) |
|||||||||||||
Derivatives |
||||||||||||||||
Total liabilities at fair value |
1 |
The investments for account of policyholders include investments carried at fair value through profit or loss. |
2 |
The investment contracts for account of policyholders represents only those investment contracts carried at fair value. |
Aegon Annual Report on Form 20-F 2022 263 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Total 2022 1) |
Total 2021 | |||||||||||||||
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 |
||||||||||||||||
Money markets and other short-term instruments |
- | - | - | |||||||||||||
Fair value through profit or loss |
||||||||||||||||
Shares |
- | - | ||||||||||||||
Money markets and other short-term instruments |
- | - | - | |||||||||||||
Investments for account of policyholders |
- | - | - | |||||||||||||
- |
- |
|||||||||||||||
Total assets at fair value |
||||||||||||||||
- |
- |
|||||||||||||||
Total Liabilities carried at fair value |
- |
- |
- |
- |
1 |
2022 excludes the assets and liabilities of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
264 2022 |
Notes to the consolidated financial statements Note 44 | ||||
Assets carried at fair value |
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||||||||||||||||||||||||||||||||||||||||||
Available-for-sale |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | - | - | - | - | ( |
) | - | |||||||||||||||||||||||||||||||||||||||
Debt securities |
- | ( |
) | ( |
) | ( |
) | ( |
) | - | ( |
) | ( |
) | - | |||||||||||||||||||||||||||||||||||||||||
Money markets and other short-term instruments |
- | - | ( |
) | - | - | - | ( |
) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Other investments at fair value |
- | ( |
) | ( |
) | ( |
) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
- |
( |
) |
( |
) |
- |
|||||||||||||||||||||||||||||||||||||||||
Fair value through profit or loss |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
- | - | ( |
) | - | - | - | - | - | ( |
) | - | - | |||||||||||||||||||||||||||||||||||||||||||
Debt securities |
- | ( |
) | - | ( |
) | - | - | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||
Other investments at fair value |
- | - | ( |
) | - | - | - | - | ( |
) | - | |||||||||||||||||||||||||||||||||||||||||||||
Investments for account of policyholders |
- | ( |
) | ( |
) | - | ( |
) | - | - | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Derivatives |
- | - | - | - | - | ( |
) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate |
- | ( |
) | - | ( |
) | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||||||||||||||
Investments in real estate for policyholders |
- | ( |
) | - | ( |
) | - | ( |
) | - | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||||||||||
- |
( |
) |
( |
) |
- |
- |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Revalued amounts |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held for own use |
( |
) | ( |
) | - | ( |
) | ( |
) | - | ( |
) | - | - | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||
( |
) |
( |
) |
- |
( |
) |
( |
) |
- |
( |
) |
- |
- |
( |
) |
( |
) | |||||||||||||||||||||||||||||||||||||||
Total assets at fair value |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Liabilities carried at fair value |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts for account of policyholders |
( |
) | - | ( |
) | - | ( |
) | - | - | - | ( |
) | - | ||||||||||||||||||||||||||||||||||||||||||
Derivatives |
- | ( |
) | - | - | ( |
) | - | - | - | - | ( |
) | - | ||||||||||||||||||||||||||||||||||||||||||
- |
( |
) |
- |
( |
) |
- |
- |
- |
( |
) |
- |
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 items: Gains / (losses) on revaluation of available-for-sale available-for-sale |
3 |
Total gains / (losses) for the period during which the financial instrument was in Level III. |
Aegon Annual Report on Form 20-F 2022 | 265 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||||||||
Assets carried at fair value |
![]() |
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||||||||||||||||||||||||||||||||||||
Available-for-sale |
||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
( |
) | ( |
) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Debt securities |
( |
) | ( |
) | ( |
) | - | ( |
) | - | ||||||||||||||||||||||||||||||||||||||
Money markets and other short-term instruments |
- | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Other investments at fair value |
( |
) | ( |
) | ( |
) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
( |
) |
( |
) |
( |
) |
- |
( |
) |
- |
|||||||||||||||||||||||||||||||||||||||
Fair value through profit or loss |
||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
- | ( |
) | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Debt securities |
( |
) | - | ( |
) | ( |
) | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Other investments at fair value |
- | ( |
) | - | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||||||||
Investments for account of policyholders |
( |
) | ( |
) | ( |
) | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||||||
Derivatives |
( |
) | - | - | ( |
) | - | - | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||||
Investments in real estate |
- | ( |
) | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Investments in real estate for policyholders |
- | ( |
) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
( |
) |
( |
) |
- |
- |
( |
) |
|||||||||||||||||||||||||||||||||||||||||
Revalued amounts |
||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held for own use |
( |
) | ( |
) | - | ( |
) | ( |
) | - | - | |||||||||||||||||||||||||||||||||||||
( |
) |
( |
) |
- |
( |
) |
( |
) |
- |
- |
||||||||||||||||||||||||||||||||||||||
Total assets at fair value |
( |
) |
( |
) |
- |
( |
) |
|||||||||||||||||||||||||||||||||||||||||
Liabilities carried at fair value |
||||||||||||||||||||||||||||||||||||||||||||||||
Investment contracts for account of policyholders |
( |
) | ( |
) | - | ( |
) | - | - | - | - | ( |
) | |||||||||||||||||||||||||||||||||||
Derivatives |
( |
) | - | - | ( |
) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
( |
) |
- |
( |
) |
- |
- |
- |
- |
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 items: Gains / (losses) on revaluation of available-for-sale available-for-sale |
3 |
Total gains / (losses) for the period during which the financial instrument was in Level III. |
266 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 44 | ||||
Valuation technique 1) |
Significant unobservable input 2) |
December 31, 2022 4 ) |
Range (weighted average) |
December 31, 2021 |
Range (weighted average) | |||||||||||||||||||
Assets carried at fair value |
||||||||||||||||||||||||
Available-for-sale |
||||||||||||||||||||||||
Shares |
||||||||||||||||||||||||
n.a. | n.a. | |||||||||||||||||||||||
n.a. | n.a. | |||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||
n.a. | n.a. | |||||||||||||||||||||||
- | - | |||||||||||||||||||||||
n.a. | n.a. | |||||||||||||||||||||||
Other investments at fair value |
||||||||||||||||||||||||
Tax credit investments |
||||||||||||||||||||||||
Investment funds |
n.a. | n.a. | ||||||||||||||||||||||
Other |
n.a. | n.a. | ||||||||||||||||||||||
At December 31 |
||||||||||||||||||||||||
Fair value through profit or loss |
||||||||||||||||||||||||
Shares |
- | n.a. | n.a. | |||||||||||||||||||||
Debt securities |
- | n.a. | n.a. | |||||||||||||||||||||
Debt securities |
- | - | n.a. | |||||||||||||||||||||
Other investments at fair value |
||||||||||||||||||||||||
Investment funds |
n.a. | n.a. | ||||||||||||||||||||||
Other |
- | n.a. | n.a. | |||||||||||||||||||||
Total assets at fair value 3) |
||||||||||||||||||||||||
Liabilities carried at fair value |
||||||||||||||||||||||||
Derivatives |
||||||||||||||||||||||||
Embedded derivatives in insurance contracts |
||||||||||||||||||||||||
Other |
n.a | - | - | |||||||||||||||||||||
Total liabilities at fair value |
- |
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 for account of policyholders are excluded from the table above and from the disclosure regarding reasonably possible alternative assumptions. Policyholder assets, and their returns, belong to policyholders and do not impact Aegon’s net result or equity. The effect on total assets is offset by the effect on total liabilities. |
4 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 | 267 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
December 31, 2022 1) |
Effect of reasonably possible alternative assumptions (+/-) |
December 31, 2021 |
Effect of reasonably possible alternative assumptions (+/-) |
|||||||||||||||||||||
Increase |
Decrease |
Increase | Decrease | |||||||||||||||||||||
Financial liabilities carried at fair value |
||||||||||||||||||||||||
Embedded derivatives in insurance contracts |
( |
) |
( |
) |
1 |
2022 excludes the liabilities of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
2022 |
Carrying amount December 31, 2022 1) |
Estimated fair value hierarchy |
Total estimated fair value December 31, 2022 1) |
|||||||||||||||||
Level I |
Level II |
Level III |
||||||||||||||||||
Assets |
||||||||||||||||||||
Mortgage loans - held at amortized cost |
- | |||||||||||||||||||
Private loans - held at amortized cost |
- | - | ||||||||||||||||||
Other loans - held at amortized cost |
- | |||||||||||||||||||
Liabilities |
||||||||||||||||||||
Subordinated borrowings - held at amortized cost |
- | |||||||||||||||||||
Trust pass-through securities - held at amortized cost |
- | - | ||||||||||||||||||
Borrowings – held at amortized cost |
- | |||||||||||||||||||
Investment contracts - held at amortized cost |
- | - |
1 |
2022 excludes the assets and liabilities of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
2021 |
Carrying amount December 31, 2021 |
Estimated fair value hierarchy | Total estimated fair value December 31, 2021 |
|||||||||||||||||
Level I | Level II | Level III | ||||||||||||||||||
Assets |
||||||||||||||||||||
Mortgage loans - held at amortized cost |
- | |||||||||||||||||||
Private loans - held at amortized cost |
- | |||||||||||||||||||
Other loans - held at amortized cost |
||||||||||||||||||||
Liabilities |
||||||||||||||||||||
Subordinated borrowings - held at amortized cost |
- | |||||||||||||||||||
Trust pass-through securities - held at amortized cost |
- | - | ||||||||||||||||||
Borrowings – held at amortized cost |
||||||||||||||||||||
Investment contracts - held at amortized cost |
- | - |
268 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 44 | ||||
Aegon Annual Report on Form 20-F 2022 | 269 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
270 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 44 | ||||
Aegon Annual Report on Form 20-F 2022 | 271 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
272 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 44 | ||||
2022 1) |
2021 | |||||||||||||||
Trading |
Designated |
Trading | Designated | |||||||||||||
Investments for general account |
||||||||||||||||
Investments for account of policyholders |
- | |||||||||||||||
Derivatives with positive values not designated as hedges |
- | |||||||||||||||
Total financial assets at fair value through profit or loss |
||||||||||||||||
Investment contracts for account of policyholders |
- | |||||||||||||||
Derivatives with negative values not designated as hedges |
- | - | ||||||||||||||
Total financial liabilities at fair value through profit or loss |
1 |
2022 excludes the assets and liabilities of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
Aegon Annual Report on Form 20-F 2022 | 273 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
2022 1) |
2021 | |||||||||||||||
Trading |
Designated |
Trading | Designated | |||||||||||||
Net gains and (losses) |
( |
( |
1 |
2022 excludes the disposal group, which is separately disclosed in note 51 Discontinued operations. |
2022 |
2021 | |||||||||||||||
Purchase |
Sale |
Purchase | Sale | |||||||||||||
Real estate |
- | |||||||||||||||
Mortgage loans |
- | |||||||||||||||
Private loans |
- | - | ||||||||||||||
Other |
- | - |
274 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 45 | ||||
< 1 year amounts |
1 < 2 years amounts |
2 < 3 years amounts |
3 < 4 years amounts |
4 < 5 years amounts |
> 5 years amounts |
|||||||||||||||||||
2022 |
||||||||||||||||||||||||
Operating lease rights |
||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||
Operating lease rights |
2022 |
2021 | |||||||
Guarantees |
||||||||
Standby letters of credit |
||||||||
Share of contingent liabilities incurred in relation to interests in joint ventures |
||||||||
Other guarantees |
||||||||
Other commitments and contingent liabilities |
Aegon Annual Report on Form 20-F 2022 | 275 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
¨ |
Due and punctual payment of payables under letter of credit agreements applied for by Aegon N.V. as co-applicant with its captive insurance companies that are subsidiaries of Transamerica Corporation and Commonwealth General Corporation. At December 31, 2022, the letter of credit arrangements utilized by captives to provide collateral to affiliates amounted to EUR |
¨ |
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 as of December 31, 2022. |
276 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 45 | ||||
Aegon Annual Report on Form 20-F 2022 | 277 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
278 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 46 | ||||
◆ |
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. The transferred assets are not derecognized. The obligation to repay the cash collateral is recognized as a liability. The 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. |
2022 1) |
||||||||||||||||
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 |
||||||||||||||||
Carrying amount of associated liabilities |
1 |
|
2021 | ||||||||||||||||
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 |
||||||||||||||||
Carrying amount of associated liabilities |
Aegon Annual Report on Form 20-F 2022 | 279 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Securities lending |
2022 1) |
2021 | ||||||
Carrying amount of transferred financial assets |
||||||||
Fair value of cash collateral received |
||||||||
Fair value of non-cash collateral received |
||||||||
Net exposure |
( |
) |
( |
|||||
Non-cash collateral that can be sold or repledged in the absence of default |
||||||||
Non-cash collateral that has been sold or transferred |
1 |
|
Reverse repurchase agreements |
2022 1) |
2021 | ||||||
Cash paid for reverse repurchase agreements |
||||||||
Fair value of non-cash collateral received |
||||||||
Net exposure |
( |
) |
( |
|||||
Non-cash collateral that can be sold or repledged in the absence of default |
||||||||
Non-cash collateral that has been sold or transferred |
1 |
2022 excludes the disposal group, which is separately disclosed in note 51 Discontinued operations. |
280 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 47 | ||||
Assets pledged for general account and contingent liabilities |
2022 1) |
2021 | ||||||
General account (contingent) liabilities |
||||||||
Collateral pledged |
||||||||
Net exposure |
( |
) |
( |
|||||
Non-cash collateral that can be sold or repledged by the counterparty |
1 |
|
Assets pledged for repurchase agreements |
2022 1) |
2021 | ||||||
Cash received on repurchase agreements |
||||||||
Collateral pledged (transferred financial assets) |
||||||||
Net exposure |
1 |
2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations. |
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 assets subject to offsetting, enforceable master netting arrangements and similar agreements |
Gross amounts of recognized financial assets |
Financial instruments |
Cash collateral received (excluding surplus collateral) |
|||||||||||
2022 |
||||||||||||||
Derivatives |
||||||||||||||
At December 31 |
||||||||||||||
2021 |
||||||||||||||
Derivatives |
||||||||||||||
At December 31 |
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 liabilities subject to offsetting, enforceable master netting arrangements and similar agreements |
Gross amounts of recognized financial liabilities |
Financial instruments |
Cash collateral pledged (excluding surplus collateral) |
Net amount | ||||||||||
2022 |
||||||||||||||
Derivatives |
||||||||||||||
At December 31 |
||||||||||||||
2021 |
||||||||||||||
Derivatives |
||||||||||||||
At December 31 |
Aegon Annual Report on Form 20-F 2022 | 281 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
282 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 49 | ||||
◆ |
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◆ |
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◆ |
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◆ |
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◆ |
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◆ |
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Aegon Annual Report on Form 20-F 2022 | 283 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
|
◆ |
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◆ |
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◆ |
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◆ |
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◆ |
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284 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 50 | ||||
Aegon Annual Report on Form 20-F 2022 | 285 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
2022 |
2021 | 2020 | ||||||||||
Supervisory Board 1) |
||||||||||||
Executive Board |
||||||||||||
Key Management |
||||||||||||
In fixed compensation |
||||||||||||
In cash based variable compensation |
||||||||||||
In share based variable compensation |
||||||||||||
In pension contributions |
||||||||||||
In other benefits |
1 |
|
Shares held in Aegon at December 31 | 2022 |
2021 | ||||||
Ben J. Noteboom |
||||||||
Dona D. Young |
||||||||
Total |
286 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 51 | ||||
Amounts in EUR millions |
2022 |
2021 |
2020 |
|||||||||
Discontinued operations |
||||||||||||
Premium income |
||||||||||||
Investment income |
||||||||||||
Fee and commission income |
||||||||||||
Other revenues |
- |
- |
||||||||||
Total revenues |
||||||||||||
Income from reinsurance ceded |
( |
) | ||||||||||
Results from financial transactions |
( |
) |
( |
) |
||||||||
Other income |
||||||||||||
Total income |
( |
) |
||||||||||
Premiums paid to reinsurers |
||||||||||||
Policyholder claims and benefits |
( |
) |
||||||||||
Profit sharing and rebates |
- |
|||||||||||
Commissions and expenses |
||||||||||||
Impairment charges / (reversals) |
( |
) |
( |
) |
||||||||
Interest charges and related fees |
||||||||||||
Other charges |
||||||||||||
Total charges |
( |
) |
||||||||||
Result from discontinued operations before share in profit / (loss) of joint ventures, associates and tax |
||||||||||||
Share in profit / (loss) of joint ventures |
||||||||||||
Share in profit / (loss) of associates |
||||||||||||
Result before tax from discontinued operations |
||||||||||||
Income tax (expense) / benefit |
( |
) |
( |
) |
( |
) | ||||||
Result after tax from discontinued operations |
||||||||||||
Impairment loss on remeasurement of the disposal group |
( |
) |
- |
- |
||||||||
Net result from discontinued operations after remeasurement |
( |
) |
Amounts in EUR millions |
2022 |
2021 |
2020 |
|||||||||
Net result from discontinued operations |
( |
) |
||||||||||
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 |
( |
) | ||||||||||
Income tax relating to items that will not be reclassified |
( |
) |
( |
) |
||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||
Gains / (losses) on revaluation of available-for-sale |
( |
) |
||||||||||
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale |
( |
) |
( |
) | ||||||||
Equity movements of joint ventures |
- |
- |
||||||||||
Equity movements of associates |
( |
) |
||||||||||
Income tax relating to items that may be reclassified |
( |
) |
( |
) | ||||||||
Other |
- |
- |
||||||||||
Total other comprehensive income / (loss) from discontinued operations |
( |
) |
( |
) | ||||||||
Total comprehensive income / (loss) from discontinued operations |
( |
) |
Aegon Annual Report on Form 20-F 2022 | 287 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Amounts in EUR millions | 2022 | |||
Net cash receivable after costs to sell |
||||
Fair value of 29.99% share in a.s.r. 1) |
||||
Fair value less costs to sell |
||||
Carrying amount of Aegon the Netherlands 2) |
||||
Fair value less costs to sell minus carrying amount |
( |
|||
Assets in scope for impairment per December 31, 2022 |
||||
Impairment loss recognized in 2022 |
||||
Impairment to be recognized upon the completion of the sale |
1 |
Based on the closing price of a.s.r.’s shares on December 31, 2022 |
2 |
The carrying amount of Aegon the Netherlands includes contingent payables and receivables between Aegon NV and Aegon NL that will be recognized prior to the closing date |
Amounts in EUR millions | 2022 |
2021 | 2020 | |||||||||
Net cash inflow (outflow) from operating activities |
( |
) | ( |
|||||||||
Net cash inflow (outflow) from investing activities |
( |
) | ( |
|||||||||
Net cash inflow (outflow) from financing activities |
( |
) | ( |
) | ||||||||
Net cash inflow (outflow) from discontinued operations |
( |
) |
( |
288 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 51 | ||||
Amounts in EUR millions | 2022 | |||
Assets |
||||
Cash and cash equivalents |
||||
Investments |
||||
Investments for account of policyholders |
||||
Derivatives |
||||
Investments in joint ventures |
||||
Investments in associates |
||||
Reinsurance assets |
||||
Defined benefit assets |
||||
Deferred tax assets |
||||
Deferred expenses |
||||
Other assets and receivables |
||||
Intangible assets |
||||
Total assets held for sale |
||||
Liabilities |
||||
Insurance contracts |
||||
Insurance contracts for account of policyholders |
||||
Investment contracts |
||||
Investment contracts for account of policyholders |
||||
Derivatives |
||||
Borrowings |
||||
Provisions |
||||
Defined benefit liabilities |
||||
Deferred gains |
||||
Deferred tax liabilities |
||||
Other liabilities |
||||
Accruals |
||||
Total liabilities held for sale |
◆ |
SPPI: assets of which cash flows represent solely payments of principal and interest (SPPI) on an outstanding principal amount, excluding any financial assets that meet the definition of held for trading in IFRS 9, or that are managed and whose performance is evaluated on a fair value basis; and |
◆ |
Other: all financial assets other than those specified in SPPI: |
Aegon Annual Report on Form 20-F 2022 | 289 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
with contractual terms that do not give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding; |
◆ |
that meet the definition of held for trading in IFRS 9; or |
◆ |
that are managed and whose performance are evaluated on a fair value basis. |
2022 |
||||||||||||
Financial assets at fair value |
Fair value at the end of the reporting period |
Change in fair value during the reporting period |
||||||||||
Shares 1) |
SPPI | - | - | |||||||||
Other | ( |
) | ||||||||||
Debt securities |
SPPI | ( |
) | |||||||||
Other | ( |
) | ||||||||||
Mortgage loans |
SPPI | ( |
) | |||||||||
Other | - | - | ||||||||||
Private loans |
SPPI | ( |
) | |||||||||
Other | - | |||||||||||
Other financial assets |
SPPI | - | - | |||||||||
Other | ||||||||||||
At December 31 |
( |
) |
1 |
The SPPI-compliant shares include preferred equity instruments. |
SPPI compliant financial assets at carrying value |
AAA | AA | A | BBB | BB | B | CCC or lower |
Not Rated |
Total | |||||||||||||||||||||||||||
2022 |
||||||||||||||||||||||||||||||||||||
Debt securities – Carried at fair value |
- | - | - | |||||||||||||||||||||||||||||||||
Mortgage loans – Carried at amortized cost |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Private loans – Carried at amortized cost |
- | - | ||||||||||||||||||||||||||||||||||
At December 31 |
- |
- |
2022 |
||||||||
SPPI compliant financial assets rated BB or below |
Carrying amount |
Fair value |
||||||
Debt securities – Carried at fair value |
||||||||
Mortgage loans – Carried at amortized cost |
||||||||
Private loans – Carried at amortized cost |
||||||||
At December 31 |
290 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 51 | ||||
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 overcollater- alization) |
Net exposure |
||||||||||||||||||||||||||||||
Debt securities - carried at fair value |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Mortgage loans - carried at amortized cost |
- | - | - | |||||||||||||||||||||||||||||||||||||
Private loans - carried at amortized cost |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Other loans - carried at amortized cost |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Other financial assets - carried at fair value |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Derivatives |
- | - | - | - | - | - | ( |
) | ||||||||||||||||||||||||||||||||
Reinsurance assets |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
At December 31 |
- |
- |
The Netherlands |
||||||||
Credit rating general account investments, excluding reinsurance assets 2022 |
Amortized cost |
Fair value |
||||||
AAA |
||||||||
AA |
||||||||
A |
||||||||
BBB |
||||||||
BB |
||||||||
B |
- | |||||||
CCC or lower |
- | |||||||
Assets not rated |
||||||||
Total |
||||||||
Past due and / or impaired assets |
||||||||
At December 31, 2022 |
Carrying value |
||||
AAA |
- | |||
AA |
||||
A |
||||
Below A |
- | |||
Not rated |
||||
At December 31, 2022 |
Aegon Annual Report on Form 20-F 2022 | 291 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Credit risk concentrations – debt securities and money market investments 2022 |
The Netherlands |
Of which past due and / or impaired assets |
||||||
Residential mortgage-backed securities (RMBSs) |
- | |||||||
Commercial mortgage-backed securities (CMBSs) |
- | |||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans |
- | |||||||
Financial - Banking |
- | |||||||
Financial - Other |
- | |||||||
Capital goods and other industry |
- | |||||||
Communications & Technology |
- | |||||||
Consumer cyclical |
- | |||||||
Consumer non-cyclical |
- | |||||||
Energy |
- | |||||||
Transportation |
- | |||||||
Utility |
- | |||||||
Government bonds |
- | |||||||
At December 31, 2022 |
- |
Credit risk concentrations – Government bonds per country of risk 2022 |
The Netherlands |
|||
Netherlands |
||||
United Kingdom |
||||
Austria |
||||
Belgium |
||||
Finland |
||||
France |
||||
Germany |
||||
Indonesia |
||||
Luxembourg |
||||
Rest of Europe |
||||
Rest of world |
||||
At December 31, 2022 |
Credit risk concentrations – Credit rating 2022 1) |
Government bonds |
Corporate bonds |
RMBSs CMBSs ABSs |
Other |
Total |
|||||||||||||||||||
AAA |
- | |||||||||||||||||||||||
AA |
- | |||||||||||||||||||||||
A |
- | |||||||||||||||||||||||
BBB |
- | |||||||||||||||||||||||
BB |
- | - | ||||||||||||||||||||||
B |
- | - | - | - | - | |||||||||||||||||||
CCC or lower |
- | - | - | |||||||||||||||||||||
At December 31, 2022 |
- |
Credit risk concentrations – mortgage loans 2022 |
The Netherlands |
Of which past due and / or impaired assets |
||||||
Retail |
- | |||||||
Other commercial |
||||||||
Residential |
||||||||
At December 31, 2022 |
292 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 51 | ||||
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 |
- | - | ||||||||||||||||||
Commercial mortgage-backed securities |
- | - | - | |||||||||||||||||
Asset-backed securities |
( |
) | ||||||||||||||||||
Total |
( |
) |
2022 |
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 |
||||||||||||||||||||||||
Dutch government |
( |
) | ||||||||||||||||||||||
Other government |
( |
) | ||||||||||||||||||||||
Mortgage-backed securities |
- | ( |
) | |||||||||||||||||||||
Asset-backed securities |
( |
) | ||||||||||||||||||||||
Corporate |
( |
) | ||||||||||||||||||||||
Other |
- | - | - | |||||||||||||||||||||
Total |
( |
) |
Aegon Annual Report on Form 20-F 2022 | 293 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
December 31, 2022 |
||||||||
Unrealized losses - debt securities, money market investments and other |
Carrying value of instruments with unrealized losses |
Unrealized losses |
||||||
Residential mortgage-backed securities (RMBSs) |
( |
) | ||||||
Commercial mortgage-backed securities (CMBSs) |
- | |||||||
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans |
( |
) | ||||||
Financial Industry - Banking |
( |
) | ||||||
Financial Industry - Insurance |
( |
) | ||||||
Financial Industry - Other |
( |
) | ||||||
Industrial |
( |
) | ||||||
Utility |
( |
) | ||||||
Government |
( |
) | ||||||
Total |
( |
) |
2022 |
||||||||||||||||
Past due but not impaired assets |
0-6 months |
6-12 months |
> 1 year |
Total |
||||||||||||
Mortgage loans |
||||||||||||||||
Other loans |
||||||||||||||||
At December 31 |
Impaired financial assets |
Carrying amount 2022 |
|||
Shares |
||||
Mortgage loans |
||||
Other loans |
||||
At December 31 |
Equity, real estate and non-fixed income exposure |
The Netherlands |
|||
Equity funds |
||||
Investments in real estate |
||||
Other alternative investments |
||||
Other financial assets |
||||
At December 31, 2022 |
Market risk concentrations – shares |
The Netherlands |
Of which impaired assets |
||||||
Financials |
- | |||||||
Funds |
||||||||
At December 31, 2022 |
294 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 51 | ||||
2022 |
||||||||
Non derivative financial instruments to transition to alternative benchmark |
Financial assets non-derivatives |
Financial liabilities non-derivatives |
||||||
By benchmark rate |
||||||||
Euribor |
- | |||||||
Total |
- |
2022 |
2021 |
|||||||
Derivative financial instruments to transition to alternative benchmark |
Nominal Value |
Nominal Value |
||||||
By benchmark rate |
||||||||
GBP LIBOR |
- | - | ||||||
USD LIBOR |
- | |||||||
EUR LIBOR |
- | - | ||||||
Euribor |
||||||||
Fed Funds |
- | - | ||||||
EONIA |
- | - | ||||||
Total |
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 |
||||||||||||||||||
2022 |
||||||||||||||||||||||||
Borrowings |
- |
|||||||||||||||||||||||
Other financial liabilities |
||||||||||||||||||||||||
Total financial liabilities (excluding investment/insurance contracts) |
||||||||||||||||||||||||
Investment contracts 1) |
||||||||||||||||||||||||
Investment contracts for account of policyholders 1) |
- |
- |
- |
- |
||||||||||||||||||||
Total investment contracts |
1 |
Excluding investment contracts with discretionary participating features. |
Financial liabilities relating to insurance and investment contracts 1) |
On demand |
< 1 yr amount |
1 < 5 yrs amount |
5 < 10 yrs amount |
> 10 yrs amount |
Total amount |
||||||||||||||||||
2022 |
||||||||||||||||||||||||
Insurance contracts |
- |
|||||||||||||||||||||||
Insurance contracts for account of policyholders |
- |
|||||||||||||||||||||||
Investment contracts |
- |
|||||||||||||||||||||||
Investment contracts for account of policyholders |
- |
- |
- |
- |
||||||||||||||||||||
Total |
- |
1 |
The liability amount in the table reflects the discounting for interest as well as adjustments for the timing of other factors as described above. As a result, the sum of the cash benefit payments shown for all years in the table exceeds the corresponding liability amounts included in Insurance contracts and Investments contracts. |
Aegon Annual Report on Form 20-F 2022 | 295 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Maturity analysis relating to derivatives 1) (Contractual cash flows) |
On demand | < 1 yr amount | 1 < 5 yrs amount |
5 < 10 yrs amount |
> 10 yrs amount |
Total amount | ||||||||||||||||||
2022 |
||||||||||||||||||||||||
Gross settled |
||||||||||||||||||||||||
Cash inflows |
- | |||||||||||||||||||||||
Cash outflows |
- | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
Net settled |
||||||||||||||||||||||||
Cash inflows |
- | - | - | - | - | - | ||||||||||||||||||
Cash outflows |
- | - | - | - | - | - |
1 |
Derivatives includes all financial derivatives regardless whether they have a positive or a negative value. It does not include bifurcated embedded derivatives. These are presented together with the host contract. For interest rate derivatives only, cash flows related to the pay leg are taken into account for determining the gross undiscounted cash flows. |
296 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 51 | ||||
2022 |
2021 | |||||||
GMI 1), 2) |
GMI 1), 2) | |||||||
At January 1 |
||||||||
Incurred guarantee benefits 3) |
( |
) | ( |
) | ||||
At December 31 |
||||||||
Account value 4) |
||||||||
Net amount at risk 5) |
1 |
Guaranteed minimum investment return in the Netherlands. |
2 |
Balances are included in the insurance liabilities on the face of the statement of financial position; refer to note 34 Insurance contracts. |
3 |
Incurred guarantee benefits mainly comprise the effect of guarantees from new contracts, releases related to expired out-of-the-money |
4 |
Account value reflects the liability value of the insurance contracts as a whole. |
5 |
The net amount at risk represents the sum of the differences between the guaranteed and actual amount that is credited to the policyholders. For Individual policies only positive differences are included, for Group pensions contracts carry forwards of negative differences are recognized. |
Coupon rate | Coupon date | Issue / Maturity | 2022 |
|||||||||||||
Revolving Loan Facility Warehouse Mortgage Loans |
||||||||||||||||
Revolving Loan Facility Warehouse Mortgage Loans |
||||||||||||||||
Revolving Loan Facility Warehouse Mortgage Loans |
||||||||||||||||
EUR 875 million “SAECURE 16” RMBS Note 1) |
||||||||||||||||
EUR 550 million “SAECURE 18” NHG RMBS Note 2) |
||||||||||||||||
EUR 750 million “SAECURE 20” RMBS Note 3) |
||||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 4) |
||||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 5) |
||||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 6) |
||||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 7) |
||||||||||||||||
EUR 500 million Conditional Pass-Through Covered Bond 8) |
||||||||||||||||
Aegon Bank Senior Non-Preferred debt |
||||||||||||||||
Other |
||||||||||||||||
At December 31 |
1 |
The first optional redemption date is October 30, 2023; the final legal maturity date is October 30, 2091. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments. |
2 |
The first optional redemption date is July 28, 2025; the final legal maturity date is April 28, 2092. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments. |
3 |
The first optional redemption date is October 28, 2027; the final legal maturity date is April 28, 2093. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments. |
4 |
The maturity date is May 25, 2023; the extended due for payment date is May 25, 2055. |
5 |
The maturity date is November 21, 2024; the extended due for payment date is November 21, 2056. |
6 |
The maturity date is November 16, 2025; the extended due for payment date is November 16, 2057. |
7 |
The maturity date is June 27, 2027; the extended due for payment date is June 27, 2059. |
8 |
The maturity date is June 9, 2036; the extended due for payment date is June 9, 2037. |
Aegon Annual Report on Form 20-F 2022 | 297 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Actuarial assumptions used to determine defined benefit obligations at year-end |
2022 |
2021 | ||||||
Demographic actuarial assumptions |
||||||||
Mortality |
|
table 1) |
|
|
table 1) |
| ||
Financial actuarial assumptions |
||||||||
Discount rate |
||||||||
Salary increase rate 2) |
||||||||
Indexation 2) |
longer derived | Curve 2021 |
1 |
Based on prospective mortality table of the Dutch Actuarial Society with minor methodology adjustments. |
2 |
Based on Dutch Consumer Price Index. |
298 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 51 | ||||
Estimated approximate effects on the defined benefit obligation |
||||||||
2022 |
2021 | |||||||
Demographic actuarial assumptions |
||||||||
10% increase in mortality rates |
( |
) | ( |
) | ||||
10% decrease in mortality rates |
||||||||
Financial actuarial assumptions |
||||||||
100 basis points increase in discount rate |
( |
) | ( |
) | ||||
100 basis points decrease in discount rate |
||||||||
100 basis points increase in salary increase rate |
- | - | ||||||
25 basis points increase in indexation |
n/a | |||||||
25 basis points decrease in indexation |
n/a | ( |
) |
Level I |
Level II |
Level III |
Total 2022 |
|||||||||||||
Assets carried at fair value |
||||||||||||||||
Available-for-sale |
||||||||||||||||
Shares |
- | - | ||||||||||||||
Debt securities |
||||||||||||||||
Other investments at fair value |
- | - | ||||||||||||||
Fair value through profit or loss |
||||||||||||||||
Shares |
- | |||||||||||||||
Debt securities |
||||||||||||||||
Other investments at fair value |
- | - | ||||||||||||||
Investments for account of policyholders 1) |
||||||||||||||||
Derivatives |
- | |||||||||||||||
Investments in real estate |
- | - | ||||||||||||||
Revalued amounts |
||||||||||||||||
Real estate held for own use |
- | - | ||||||||||||||
- |
- |
|||||||||||||||
Total assets at fair value |
||||||||||||||||
Liabilities carried at fair value |
||||||||||||||||
Investment contracts for account of policyholders 2) |
- | |||||||||||||||
Derivatives |
||||||||||||||||
Total liabilities at fair value 3) |
1 |
The investments for account of policyholders included in the table above only include investments carried at fair value through profit or loss. |
2 |
The investment contracts for account of policyholders included in the table above represents only those investment contracts carried at fair value. |
3 |
Total borrowings on the statement of financial position contain borrowings carried at amortized cost that are not included in the above schedule. |
Aegon Annual Report on Form 20-F 2022 | 299 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Total 2022 | ||||||||
Transfers Level I to Level II |
Transfers Level II to Level I |
|||||||
Assets carried at fair value |
||||||||
Available-for-sale |
||||||||
Investments for account of policyholders |
- | |||||||
Total assets at fair value |
- |
Valuation technique 1) |
Significant unobservable input 2) |
December 31, 2022 |
||||||||||
Assets carried at fair value |
||||||||||||
Available-for-sale |
||||||||||||
Shares |
||||||||||||
- | ||||||||||||
Debt securities |
||||||||||||
At December 31 |
||||||||||||
Fair value through profit or loss |
||||||||||||
Shares |
||||||||||||
Debt securities |
||||||||||||
Other investments at fair value |
||||||||||||
Investment funds |
- | |||||||||||
Other |
||||||||||||
Total assets at fair value 3) |
||||||||||||
Liabilities carried at fair value |
||||||||||||
Derivatives |
||||||||||||
Embedded derivatives in insurance contracts |
||||||||||||
Total liabilities at fair value |
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 for account of policyholders are excluded from the table above and from the disclosure regarding reasonably possible alternative assumptions. Policyholder assets, and their returns, belong to policyholders and do not impact Aegon’s net result or equity. The effect on total assets is offset by the effect on total liabilities. |
300 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 51 | ||||
December 31, 2022 |
Effect of reasonably possible alternative assumptions (+/-) |
|||||||||||
Increase |
Decrease |
|||||||||||
Financial liabilities carried at fair value |
||||||||||||
Embedded derivatives in insurance contracts |
( |
) |
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 |
- | - | ||||||||||||||||||
Private loans - held at amortized cost |
- | - | ||||||||||||||||||
Other loans - held at amortized cost |
- | - | ||||||||||||||||||
Liabilities |
||||||||||||||||||||
Borrowings - held at amortized cost |
- | - | ||||||||||||||||||
Investment contracts - held at amortized cost |
- | - |
2022 |
||||||||||||
Trading |
Designated |
|||||||||||
Investments for general account |
- | |||||||||||
Investments for account of policyholders |
- | |||||||||||
Derivatives with positive values not designated as hedges |
- | |||||||||||
Total financial assets at fair value through profit or loss |
||||||||||||
Investment contracts for account of policyholders |
- | |||||||||||
Derivatives with negative values not designated as hedges |
- | |||||||||||
Total financial liabilities at fair value through profit or loss |
2022 |
||||||||||||
Trading |
Designated |
|||||||||||
Net gains and (losses) |
( |
) | ( |
) |
Aegon Annual Report on Form 20-F 2022 | 301 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
2022 |
||||||||||||
Purchase |
Sale |
|||||||||||
Real estate |
||||||||||||
Mortgage loans |
||||||||||||
Private loans |
- | |||||||||||
Other |
- |
< 1 year amounts |
1 < 2 years amounts |
2 < 3 years amounts |
3 < 4 years amounts |
4 < 5 years amounts |
> 5 years amounts |
|||||||||||||||||||
2022 |
||||||||||||||||||||||||
Operating lease rights |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
2022 |
||||||||||||||||||||||||||||||||||||||||
Guarantees |
||||||||||||||||||||||||||||||||||||||||
Standby letters of credit |
||||||||||||||||||||||||||||||||||||||||
Share of contingent liabilities incurred in relation to interests in joint ventures |
2022 |
||||||||||||||||
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 |
- |
- |
||||||||||||||
Carrying amount of associated liabilities |
- |
- |
Securities lending |
2022 |
|||
Carrying amount of transferred financial assets |
||||
Fair value of cash collateral received |
- | |||
Fair value of non-cash collateral received |
||||
Net exposure |
( |
) | ||
Non-cash collateral that can be sold or repledged in the absence of default |
||||
Non-cash collateral that has been sold or transferred |
- |
302 | Aegon Annual Report on Form 20-F 2022 |
Notes to the consolidated financial statements Note 51 | ||||
Reverse repurchase agreements |
2022 |
|||
Cash paid for reverse repurchase agreements |
||||
Fair value of non-cash collateral received |
||||
Net exposure |
- |
|||
Non-cash collateral that can be sold or repledged in the absence of default |
||||
Non-cash collateral that has been sold or transferred |
- |
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 assets subject to offsetting, enforceable master netting arrangements and similar agreements |
Financial instruments |
Cash collateral received (excluding surplus collateral) |
Net amount |
|||||||||||||||||||||
2022 |
||||||||||||||||||||||||
Derivatives |
- |
- |
- |
|||||||||||||||||||||
At December 31 |
- |
- |
- |
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 liabilities subject to offsetting, enforceable master netting arrangements and similar agreements |
Financial instruments |
Cash collateral pledged (excluding surplus collateral) |
Net amount |
|||||||||||||||||||||
2022 |
||||||||||||||||||||||||
Derivatives |
— |
- |
||||||||||||||||||||||
At December 31 |
— |
- |
Aegon Annual Report on Form 20-F 2022 | 303 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Supervisory Board |
Executive Board | |
William L. Connelly |
Lard Friese | |
Mark A. Ellman |
Matthew J. Rider | |
Karen Fawcett |
||
Jack McGarry |
||
Ben J. Noteboom |
||
Caroline Ramsay |
||
Thomas Wellauer |
||
Corien M. Wortmann-Kool |
||
Dona D. Young |
304 | Aegon Annual Report on Form 20-F 2022 |
Financial statements of Aegon N.V. | ||||
Financial statements of Aegon N.V. | ||||
306 |
||||
307 |
||||
308 |
1 |
|||
308 |
2 |
|||
308 |
3 |
|||
308 |
4 |
|||
309 |
5 |
|||
309 |
6 |
|||
309 |
7 |
|||
309 |
8 |
|||
309 |
9 |
|||
310 |
10 |
|||
310 |
11 |
|||
310 |
12 |
|||
310 |
13 |
|||
312 |
14 |
|||
315 |
15 |
|||
316 |
16 |
|||
316 |
17 |
|||
316 |
18 |
|||
317 |
19 |
|||
317 |
20 |
|||
317 |
21 |
|||
318 |
22 |
|||
318 |
23 |
|||
319 |
||||
320 |
||||
323 |
||||
324 |
||||
326 |
||||
328 |
||||
329 |
||||
330 |
Aegon Annual Report on Form 20-F 2022 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Amounts in EUR million |
Note |
2022 |
2021 |
|||||||||
Result |
||||||||||||
Investment Income |
3 |
|||||||||||
Total revenues |
||||||||||||
Results from financial transactions |
4 |
( |
) | |||||||||
Total result |
( |
) |
||||||||||
Charges |
||||||||||||
Commissions and expenses |
5 |
|||||||||||
Interest charges and related fees |
6 |
|||||||||||
Total charges |
||||||||||||
Result before tax |
( |
) |
( |
) | ||||||||
Income Tax |
7 |
|||||||||||
Result after tax |
( |
) |
( |
) | ||||||||
Net result group companies |
8 |
( |
) | |||||||||
Net result |
( |
) |
306 | Aegon Annual Report on Form 20-F 2022 |
Financial statements of Aegon N.V. | ||||
Before profit appropriation, amounts in EUR million |
Note |
2022 |
2021 |
|||||||||
Non-current assets |
||||||||||||
Financial fixed assets |
||||||||||||
Shares in group companies |
8 |
|||||||||||
Loans to group companies |
9 |
|||||||||||
Other non-current assets |
10 |
|||||||||||
Current assets |
||||||||||||
Receivables |
||||||||||||
Receivables from group companies |
11 |
|||||||||||
Other receivables |
11 |
|||||||||||
Other current assets |
12 |
|||||||||||
Accrued interest and rent |
||||||||||||
Cash and cash equivalents |
||||||||||||
Cash and cash equivalents |
||||||||||||
Total assets |
||||||||||||
Shareholders’ equity |
||||||||||||
Share capital |
13 |
|||||||||||
Paid-in surplus |
14 |
|||||||||||
Revaluation account |
14 |
( |
) | |||||||||
Legal reserves – foreign currency translation reserve |
14 |
|||||||||||
Legal reserves in respect of group companies |
14 |
|||||||||||
Retained earnings, including treasury shares |
14 |
|||||||||||
Remeasurement of defined benefit plans of group companies |
14 |
( |
) | ( |
) | |||||||
Net result |
14 |
( |
) | |||||||||
Other equity instruments |
15 |
|||||||||||
Total equity |
||||||||||||
Non-current liabilities |
||||||||||||
Subordinated borrowings |
16 |
|||||||||||
Long-term borrowings |
17 |
|||||||||||
Current liabilities |
18 |
|||||||||||
Loans from group companies |
||||||||||||
Payables to group companies |
||||||||||||
Other current liabilities |
||||||||||||
Accruals and deferred income |
||||||||||||
Total liabilities |
||||||||||||
Total equity and liabilities |
Aegon Annual Report on Form 20-F 2022 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
2022 |
2021 | |||||||
Interest income from intercompany loans |
||||||||
Interest income from derivatives |
||||||||
Total |
2022 |
2021 | |||||||
Net fair value change of derivatives |
( |
) | ||||||
Net foreign currency gains and (losses) |
( |
) | ||||||
Total |
( |
) |
308 | Aegon Annual Report on Form 20-F 2022 |
Notes to the financial statements of Aegon N.V. Note 5 | ||||
2022 |
2021 | |||||||
Employee expenses |
||||||||
Administration expenses |
||||||||
Cost sharing to group companies |
( |
) | ( |
) | ||||
Total |
2022 |
2021 | |||||||
Subordinated borrowings |
||||||||
Borrowings |
||||||||
Other |
||||||||
Total |
2022 |
2021 | |||||||
Current Tax |
||||||||
Current Tax |
||||||||
Income tax for the period (result) / charge |
||||||||
Reconciliation between standard and effective tax |
||||||||
Result before tax |
( |
) | ( |
) | ||||
Tax on result at Dutch corporate result tax rate |
||||||||
Differences due to the effect of: |
||||||||
Tax rate changes |
- | |||||||
Change in uncertain tax positions |
- | |||||||
Non deductible expenses |
( |
) | ( |
) | ||||
Total |
2022 |
2021 | |||||||
At January 1 |
||||||||
Capital contributions and acquisitions |
||||||||
Dividend received |
( |
) | ( |
) | ||||
Net result for the financial year |
( |
) | ||||||
Revaluations |
( |
) | ||||||
At December 31 |
2022 |
2021 | |||||||
At January 1 |
||||||||
Additions / (repayments) |
( |
) | ||||||
Other changes |
||||||||
At December 31 |
||||||||
Current |
||||||||
Non-current |
Aegon Annual Report on Form 20-F 2022 | 309 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Issued and outstanding capital |
2022 |
2021 | ||||||
Common shares |
||||||||
Common shares B |
||||||||
Total share capital |
Common shares |
2022 |
2021 | ||||||
Authorized share capital |
||||||||
Number of authorized shares (in million) |
||||||||
Par value in cents per share |
Common shares B |
2022 |
2021 | ||||||
Authorized share capital |
||||||||
Number of authorized shares (in million) |
||||||||
Par value in cents per share |
Common shares | Common shares B | |||||||||||||||
Number of shares (thousands) |
Total amount | Number of shares (thousands) |
Total amount | |||||||||||||
At January 1, 2021 |
||||||||||||||||
Shares withdrawn |
( |
) | ( |
) | ||||||||||||
Dividend |
||||||||||||||||
At December 31, 2021 |
||||||||||||||||
Shares withdrawn |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Dividend |
||||||||||||||||
At December 31, 2022 |
310 | Aegon Annual Report on Form 20-F 2022 |
Notes to the financial statements of Aegon N.V. Note 13 | ||||
Weighted average number of common shares (thousands) |
Weighted average number of common shares B (thousands) |
|||||||
2021 |
||||||||
2022 |
Aegon Annual Report on Form 20-F 2022 | 311 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() | |||||||||||||||||||||||||||||||
At January 1, 2022 |
( |
( |
||||||||||||||||||||||||||||||||||||||
Net result 2021 retained |
- | - | - | - | - | - | - | ( |
- | |||||||||||||||||||||||||||||||
Net result 2022 |
- | - | - | - | - | - | - | - | ( |
( |
||||||||||||||||||||||||||||||
Total net result |
- |
- |
- |
- |
- |
- |
- |
( |
( |
|||||||||||||||||||||||||||||||
Foreign currency translation differences and movement in foreign investment hedging reserves |
- | - | - | - | - | ( |
- | - | ||||||||||||||||||||||||||||||||
Changes in revaluation in subsidiaries |
- | - | ( |
- | - | - | - | - | - | ( |
||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use |
- | - | ( |
- | - | - | - | - | ( |
|||||||||||||||||||||||||||||||
Remeasurement of defined benefit plans of group companies |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Changes and transfer to legal reserve |
- | - | - | - | ( |
- | - | - | ( |
|||||||||||||||||||||||||||||||
Other |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Other comprehensive income / (loss) |
- |
- |
( |
( |
- |
- |
( |
|||||||||||||||||||||||||||||||||
Shares issued |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Shares withdrawn |
( |
- | - | - | - | - | - | - | - | ( |
||||||||||||||||||||||||||||||
Dividends paid on common shares |
- | ( |
- | - | - | ( |
- | - | - | ( |
||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares |
- | - | - | - | - | - | ( |
- | ( |
|||||||||||||||||||||||||||||||
Redemption other equity instruments |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Coupons on perpetual securities |
- | - | - | - | - | ( |
- | - | - | ( |
||||||||||||||||||||||||||||||
Incentive plans |
- | - | - | - | - | ( |
- | - | - | ( |
||||||||||||||||||||||||||||||
At December 31, 2022 |
( |
( |
( |
( |
312 | Aegon Annual Report on Form 20-F 2022 |
Notes to the financial statements of Aegon N.V. Note 14 | ||||
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() | |||||||||||||||||||||||||||||||
At January 1, 2021 |
( |
( |
( |
( |
||||||||||||||||||||||||||||||||||||
Net result 2020 retained |
- | - | - | - | - | ( |
- | - | ( |
- | ||||||||||||||||||||||||||||||
Net result 2021 |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total net result |
- |
- |
- |
- |
- |
( |
- |
- |
||||||||||||||||||||||||||||||||
Foreign currency translation differences and movement in foreign investment hedging reserves |
- | - | - | - | - | ( |
- | - | ||||||||||||||||||||||||||||||||
Changes in revaluation in subsidiaries |
- | - | ( |
- | - | - | - | - | - | ( |
||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use |
- | - | ( |
- | - | - | - | - | - | ( |
||||||||||||||||||||||||||||||
Remeasurement of defined benefit plans of group companies |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Changes and transfer to legal reserve |
- | - | - | - | ( |
- | - | - | ||||||||||||||||||||||||||||||||
Other |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Other comprehensive income / (loss) |
- |
- |
( |
( |
- |
- |
||||||||||||||||||||||||||||||||||
Shares issued |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Shares withdrawn |
( |
- | - | - | - | - | - | - | - | ( |
||||||||||||||||||||||||||||||
Dividends paid on common shares |
- | ( |
- | - | - | ( |
- | - | - | ( |
||||||||||||||||||||||||||||||
Issuance and purchase of treasury shares |
- | - | - | - | - | - | ( |
- | ( |
|||||||||||||||||||||||||||||||
Coupons on perpetual securities |
- | - | - | - | - | ( |
- | - | - | ( |
||||||||||||||||||||||||||||||
At December 31, 2021 |
( |
( |
Aegon Annual Report on Form 20-F 2022 | 313 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
2022 |
2021 | |||||||||||||||
Number of shares (thousands) |
Amount |
Number of shares (thousands) |
Amount | |||||||||||||
At January 1 |
||||||||||||||||
Transactions in 2022: |
||||||||||||||||
Purchase: 1 transaction, average price EUR 4.92 |
||||||||||||||||
Sale: 4 transactions, average price EUR 2.46 |
( |
) | ( |
) | ||||||||||||
Sale: 1 transaction, average price EUR 3.12 |
( |
) | ( |
) | ||||||||||||
Purchase: 1 transaction, average price EUR 4.38 |
||||||||||||||||
Share withdrawn: 1 transaction, average price EUR 3.70 |
( |
) | ( |
) | ||||||||||||
Sale: 1 transaction, average price EUR 3.91 |
( |
) | ( |
) | ||||||||||||
Purchase: 1 transaction, average price EUR 4.49 |
||||||||||||||||
Purchase: 3 transactions, average price EUR 4.58 |
||||||||||||||||
Transactions in 2021: |
||||||||||||||||
Sale: transactions, average price 3.90 |
( |
) | ( |
) | ||||||||||||
Shares witdrawn: 1 transaction, average price EUR 3.89 |
( |
) | ( |
) | ||||||||||||
Sale: 1 transaction, average price 3.89 |
( |
) | ( |
) | ||||||||||||
Purchase: 1 transaction average price 3.70 |
||||||||||||||||
Sale: 1 transaction, average price 3.02 |
( |
) | ( |
) | ||||||||||||
Purchase: 1 transaction average price 4.46 |
||||||||||||||||
At December 31 |
2022 |
2021 | |||||||||||||||
Number of shares (thousands) |
Amount |
Number of shares (thousands) |
Amount | |||||||||||||
At January 1 |
||||||||||||||||
Transactions in 2022: |
||||||||||||||||
Share withdrawn: 1 transaction, average price EUR 0.10 |
( |
) | ( |
) | ||||||||||||
Purchase: 1 transaction, average price EUR 0.12 |
||||||||||||||||
Transactions in 2021: |
||||||||||||||||
Sale: 1 transaction, average price EUR 0.10 |
( |
) | - | |||||||||||||
Shares withdrawn: 1 transaction, average price EUR 0.10 |
( |
) | - | |||||||||||||
Purchase: 1 transaction, average price EUR 0.10 |
||||||||||||||||
At December 31 |
2022 |
2021 | |||||||||||||||
Number of shares (thousands) |
Total amount |
Number of shares (thousands) |
Total amount | |||||||||||||
Common shares |
||||||||||||||||
Held by Aegon N.V. |
||||||||||||||||
Held by subsidiaries |
||||||||||||||||
Common shares B |
||||||||||||||||
Held by Aegon N.V. |
||||||||||||||||
At December 31 |
314 |
Aegon Annual Report on Form 20-F 2022 |
Notes to the financial statements of Aegon N.V. Note 15 | ||||
Perpetual contingent convertible securities |
Junior perpetual capital securities |
Perpetual cumulative subordinated bonds |
Long Term Incentive Plans 1) |
Total |
||||||||||||||||
At January 1, 2022 |
||||||||||||||||||||
Shares granted |
||||||||||||||||||||
Shares vested |
( |
) |
( |
) | ||||||||||||||||
Securities redeemed |
( |
) |
( |
) | ||||||||||||||||
At December 31, 2022 |
||||||||||||||||||||
At January 1, 2021 |
||||||||||||||||||||
Shares granted |
- |
- |
- |
|||||||||||||||||
Shares vested |
- |
- |
- |
( |
) |
( |
) | |||||||||||||
Securities redeemed |
- |
( |
) |
- |
- |
( |
) | |||||||||||||
At December 31, 2021 |
1 |
|
Perpetual contingent convertible securities |
Coupon rate | Coupon date | Year of next call |
2022 |
2021 | |||||||||||
|
1) |
|||||||||||||||
At December 31 |
Junior perpetual capital securities |
Coupon rate | Coupon date | Year of next call |
2022 |
2021 | |||||||||||
USD 500 million |
1) |
, July 15 | ||||||||||||||
EUR 950 million |
2) |
, July 15 | ||||||||||||||
At December 31 |
1 |
|
2 |
|
Aegon Annual Report on Form 20-F 2022 | 315 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Perpetual cumulative subordinated bonds |
Coupon rate | Coupon date | Year of next call |
2022 |
2021 | |||||||||||||||
|
1), 4) |
|||||||||||||||||||
|
2), 4) |
|
||||||||||||||||||
|
3), 4) |
|||||||||||||||||||
At December 31 |
1 |
The coupon of the EUR |
2 |
The coupon of the EUR |
3 |
The coupon of the EUR |
4 |
|
Coupon rate | Coupon date | Issue / Maturity |
Year of next call |
2022 |
2021 | |||||||||||||||||||
Fixed to floating subordinated notes |
||||||||||||||||||||||||
EUR |
1) |
, April 25 | ||||||||||||||||||||||
USD |
2) |
April 11 |
||||||||||||||||||||||
At December 31 |
||||||||||||||||||||||||
Fair value of subordinated borrowings |
1 |
The coupon is fixed at |
2 |
The coupon is fixed at |
2022 |
2021 | |||||||
Remaining terms less than 1 year |
||||||||
Remaining terms 1 - 5 years |
||||||||
Remaining terms 5 - 10 years |
||||||||
Remaining terms over 10 years |
||||||||
At December 31 |
||||||||
Fair value of long-term borrowings |
316 | Aegon Annual Report on Form 20-F 2022 |
Notes to the financial statements of Aegon N.V. Note 19 | ||||
◆ |
Due and punctual payment of payables due under letter of credit agreements applied for by Aegon N.V. as co-applicant with its captive insurance companies that are subsidiaries of Transamerica Corporation and Commonwealth General Corporation. At December 31, 2022, the letter of credit arrangements utilized by captives to provide collateral to affiliates amounted to EUR |
◆ |
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 amounted to EUR |
◆ |
Due to the intended sale of Aegon Nederland N.V. to ASR Nederland N.V. (a.s.r.), Aegon Nederland N.V. has recognized a deferred tax liability of 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 as of December 31, 2022. |
Total remuneration of the group |
Of which PricewaterhouseCoopers Accountants N.V. (NL) |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Audit fees |
||||||||||||||||
Audit-related service fees |
||||||||||||||||
Tax |
- |
- |
- |
|||||||||||||
Other services |
- |
- |
- |
- |
||||||||||||
Total |
Aegon Annual Report on Form 20-F 2022 | 317 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
2022 |
2021 | |||||||
Final dividend on common shares |
||||||||
Earnings to be retained |
- | |||||||
To be deducted from retained earnings |
( |
) | - | |||||
Net result attributable to owners of Aegon N.V. |
( |
) |
Supervisory Board |
Executive Board | |
William L. Connelly |
Lard Friese | |
Mark A. Ellman |
Matthew J. Rider | |
Karen Fawcett |
||
Jack McGarry |
||
Ben J. Noteboom |
||
Caroline Ramsay |
||
Thomas Wellauer |
||
Corien M. Wortmann-Kool |
||
Dona D. Young |
318 | Aegon Annual Report on Form 20-F 2022 |
Other information Profit appropriation | ||||
1. | The General Meeting of Shareholders will adopt the Annual Accounts; |
2. | If the adopted profit and loss account shows a profit, the Supervisory Board may decide, upon the proposal of the Executive Board, to set aside part of the profit to augment and/or form reserves; |
3. | The profits remaining after application of 2 above shall be put at the disposal of the General Meeting of Shareholders. The Executive Board, subject to the approval of the Supervisory Board, shall make a proposal for that purpose. A proposal to pay a dividend shall be dealt with as a separate agenda item at the General Meeting of Shareholders; |
4. | The Executive Board may, subject to the approval of the Supervisory Board, make one or more interim distributions to the holders of common shares and common shares B; |
5. | Distributions are made in accordance with the principle set forth in article 4 of the Articles of Association of Aegon N.V. that the financial rights of a common share B are one fortieth (1/40th) of the financial rights of a common share; |
6. | The Executive Board may, subject to the approval of the Supervisory Board, decide that a distribution on common shares and common shares B shall not take place as a cash payment but as a payment in common shares. Alternatively, it may decide that holders of common shares and common shares B shall have the option to receive a distribution as a cash payment and/or as a payment in common shares, out of the profit and/or at the expense of reserves, provided that the Executive Board is designated by the General Meeting to issue shares. Subject to the approval of the Supervisory Board, the Executive Board shall also determine the conditions applicable to the aforementioned choices; and |
7. | The Company’s policy on reserves and dividends shall be determined and can be amended by the Supervisory Board, upon the proposal of the Executive Board. The adoption and each amendment of the policy on reserves and dividends thereafter, shall be discussed and accounted for at the General Meeting of Shareholders under a separate agenda item. |
Aegon Annual Report on Form 20-F 2022 | 319 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
320 | Aegon Annual Report on Form 20-F 2022 |
Other information Major shareholders | ||||
Aegon Annual Report on Form 20-F 2022 | 321 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
322 | Aegon Annual Report on Form 20-F 2022 |
Other financial information Schedule I | ||||
Amounts in EUR million | Cost 1) |
Fair value |
Book value | |||||||||
Shares: |
||||||||||||
Available-for-sale |
||||||||||||
Fair value through profit or loss |
||||||||||||
Bonds: |
||||||||||||
Available-for-sale and held-to-maturity: |
||||||||||||
US government |
||||||||||||
Dutch government |
||||||||||||
Other government |
||||||||||||
Mortgage backed |
||||||||||||
Asset backed |
||||||||||||
Corporate |
||||||||||||
Money market investments |
||||||||||||
Other |
||||||||||||
Subtotal |
||||||||||||
Bonds: |
||||||||||||
Fair value through profit or loss |
||||||||||||
Other investments at fair value through profit or loss |
||||||||||||
Mortgages |
||||||||||||
Private loans |
||||||||||||
Deposits with financial institutions |
||||||||||||
Policy loans |
||||||||||||
Other |
||||||||||||
Subtotal |
||||||||||||
Real estate: |
||||||||||||
Investments in real estate |
||||||||||||
Total |
1 |
Cost is defined as original cost for available-for-sale shares and amortized cost for available-for-sale and held-to-maturity bonds |
Aegon Annual Report on Form 20-F 2022 | 323 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Before profit appropriation, amounts in EUR million | 2022 |
2021 | ||||||
Non-current assets |
||||||||
Financial fixed assets |
||||||||
Shares in group companies |
||||||||
Loans to group companies |
||||||||
Other non-current assets |
||||||||
Current assets |
||||||||
Receivables |
||||||||
Receivables from group companies |
||||||||
Other receivables |
||||||||
Other current assets |
||||||||
Accrued interest and rent |
||||||||
Cash and cash equivalents |
||||||||
Cash and cash equivalents |
||||||||
Total assets |
||||||||
Shareholders’ equity |
||||||||
Share capital |
||||||||
Paid-in surplus |
||||||||
Revaluation account |
( |
) | ||||||
Legal reserves – foreign currency translation reserve |
||||||||
Legal reserves in respect of group companies |
||||||||
Retained earnings, including treasury shares |
||||||||
Remeasurement of defined benefit plans of group companies |
( |
) | ( |
) | ||||
Net result |
( |
) | ||||||
Other equity instruments |
||||||||
Total equity |
||||||||
Non-current liabilities |
||||||||
Subordinated borrowings |
||||||||
Long-term borrowings |
||||||||
Current liabilities |
||||||||
Loans from group companies |
||||||||
Payables to group companies |
||||||||
Other current liabilities |
||||||||
Accruals and deferred income |
||||||||
Total liabilities |
||||||||
Total equity and liabilities |
324 | Aegon Annual Report on Form 20-F 2022 |
Other financial information Schedule II | ||||
Amounts in EUR million | 2022 |
2021 | 2020 | |||||||||
Net result group companies |
( |
) | ||||||||||
Result after tax |
( |
) | ( |
) | ( |
) | ||||||
Net result |
( |
) |
( |
) |
Amounts in EUR million | 2022 |
2021 | 2020 | |||||||||
Result before tax |
( |
( |
( |
|||||||||
Adjustments |
( |
( |
||||||||||
Net cash flows from operating activities |
( |
( |
||||||||||
Dividends and capital repayments of subsidiaries, associates and joint ventures |
||||||||||||
Other |
( |
( |
||||||||||
Net cash flows from investing activities |
||||||||||||
Purchase of treasury shares |
( |
( |
( |
|||||||||
Issuance and repurchase of borrowings |
( |
|||||||||||
Repayment of perpetuals |
( |
( |
- | |||||||||
Dividends paid |
( |
( |
( |
|||||||||
Coupons on perpetual securities |
( |
( |
( |
|||||||||
Net cash flows from financing activities |
( |
( |
( |
|||||||||
Net increase / (decrease) in cash and cash equivalents |
( |
2022 |
2021 | |||||||||||||||
Amounts in EUR million | Subordinated borrowings |
Long-term Borrowings |
Subordinated borrowings |
Long-term Borrowings |
||||||||||||
Remaining terms less than 1 year |
||||||||||||||||
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 |
||||||||||||||||
At December 31 |
Aegon Annual Report on Form 20-F 2022 | 325 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Column A |
Column B | Column C | Column D | Column E | Column F | |||||||||||||||
Segment |
||||||||||||||||||||
Amounts in EUR million | Deferred policy acquisition costs |
Future policy benefits |
Unearned premiums |
Other policy claims and benefits |
Premium revenue |
|||||||||||||||
2022 |
||||||||||||||||||||
Americas |
||||||||||||||||||||
The Netherlands |
- | - | - | - | - | |||||||||||||||
United Kingdom |
- | - | ||||||||||||||||||
International |
( |
) | ||||||||||||||||||
Holding and other activities |
- | - | - | - | - | |||||||||||||||
Eliminations |
- | ( |
) | - | - | - | ||||||||||||||
Total |
||||||||||||||||||||
2021 |
||||||||||||||||||||
Americas |
||||||||||||||||||||
The Netherlands |
||||||||||||||||||||
United Kingdom |
- | - | ||||||||||||||||||
International |
||||||||||||||||||||
Holding and other activities |
- | - | - | - | - | |||||||||||||||
Eliminations |
- | ( |
) | - | - | - | ||||||||||||||
Total |
||||||||||||||||||||
2020 |
||||||||||||||||||||
Americas |
||||||||||||||||||||
The Netherlands |
||||||||||||||||||||
United Kingdom |
||||||||||||||||||||
International |
||||||||||||||||||||
Holding and other activities |
- | - | - | - | ||||||||||||||||
Eliminations |
- | ( |
) | - | - | - | ||||||||||||||
Total |
326 | Aegon Annual Report on Form 20-F 2022 |
Other financial information Schedule III | ||||
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 |
|||||||||||||||
2022 |
||||||||||||||||||||
Americas |
||||||||||||||||||||
The Netherlands |
- | - | - | |||||||||||||||||
United Kingdom |
||||||||||||||||||||
International |
||||||||||||||||||||
Asset Management |
- | - | - | - | ||||||||||||||||
Holding and other activities |
- | - | - | |||||||||||||||||
Eliminations |
( |
) | ( |
) | - | ( |
) | - | ||||||||||||
Total |
||||||||||||||||||||
2021 |
||||||||||||||||||||
Americas |
||||||||||||||||||||
The Netherlands |
- | |||||||||||||||||||
United Kingdom |
||||||||||||||||||||
International |
||||||||||||||||||||
Asset Management |
- | - | - | - | ||||||||||||||||
Holding and other activities |
( |
) | - | - | - | |||||||||||||||
Eliminations |
( |
) | - | - | ( |
) | - | |||||||||||||
Total |
||||||||||||||||||||
2020 |
||||||||||||||||||||
Americas |
||||||||||||||||||||
The Netherlands |
||||||||||||||||||||
United Kingdom |
||||||||||||||||||||
International |
||||||||||||||||||||
Asset Management |
- | - | - | - | ||||||||||||||||
Holding and other activities |
- | |||||||||||||||||||
Eliminations |
( |
) | ( |
) | - | ( |
) | - | ||||||||||||
Total |
Aegon Annual Report on Form 20-F 2022 | 327 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
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, 2022 |
||||||||||||||||||||
Life insurance in force |
||||||||||||||||||||
Premiums |
||||||||||||||||||||
Life insurance |
- | |||||||||||||||||||
Non-life insurance |
- | |||||||||||||||||||
Total premiums |
- |
|||||||||||||||||||
For the year ended December 31, 2021 |
||||||||||||||||||||
Life insurance in force |
||||||||||||||||||||
Premiums |
||||||||||||||||||||
Life insurance |
- | |||||||||||||||||||
Non-life insurance |
- | |||||||||||||||||||
Total premiums |
- |
|||||||||||||||||||
For the year ended December 31, 2020 |
||||||||||||||||||||
Life insurance in force |
||||||||||||||||||||
Premiums |
||||||||||||||||||||
Life insurance |
||||||||||||||||||||
Non-life insurance |
||||||||||||||||||||
Total premiums |
328 | Aegon Annual Report on Form 20-F 2022 |
Other financial information Schedule V | ||||
Amounts in EUR million | 2022 |
2021 | 2020 | |||||||||
Balance at January 1 |
||||||||||||
Addition charged to earnings |
||||||||||||
Amounts written off and other changes |
( |
) | ( |
) | ( |
) | ||||||
Transfers to disposal groups |
( |
) | - | - | ||||||||
Currency translation |
( |
) | ||||||||||
Balance at December 31 |
||||||||||||
The provisions can be analyzed as follows: |
||||||||||||
Mortgages |
||||||||||||
Other loans |
||||||||||||
Receivables |
||||||||||||
Total |
◾ |
Auditor Name: |
◾ |
Auditor FirmId: PCAOB ID |
◾ |
Auditor Location: |
Aegon Annual Report on Form 20-F 2022 | 329 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
330 | Aegon Annual Report on Form 20-F 2022 |
Auditor’s report on the Annual Report on Form 20-F | ||||
Aegon Annual Report on Form 20-F 2022 | 331 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
332 | Aegon Annual Report on Form 20-F 2022 |
Auditor’s report on the Annual Report on Form 20-F | ||||
Aegon Annual Report on Form 20-F 2022 | 333 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Additional information | ||
335 |
||
341 |
||
347 |
||
351 |
||
357 |
||
360 |
||
384 |
||
385 |
||
386 |
||
387 |
||
388 |
||
389 |
||
391 |
||
392 |
||
393 |
||
394 |
||
398 |
||
399 |
334 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of Americas | ||||
Aegon Annual Report on Form 20-F 2022 | 335 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
336 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of Americas | ||||
Aegon Annual Report on Form 20-F 2022 | 337 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
338 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of Americas | ||||
Aegon Annual Report on Form 20-F 2022 | 339 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
340 |
Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of the Netherlands | ||||
◆ |
Life |
◆ |
Mortgages |
◆ |
Banking |
◆ |
Workplace Solutions |
◆ |
Aegon Bank N.V. |
◆ |
Aegon Cappital B.V. |
◆ |
Aegon Hypotheken B.V. |
◆ |
Aegon Levensverzekering N.V. |
◆ |
Aegon Schadeverzekering N.V. |
◆ |
Aegon Spaarkas N.V. |
◆ |
Nedasco B.V. |
◆ |
Robidus Groep B.V. |
◆ |
TKP Pensioen B.V. |
Aegon Annual Report on Form 20-F 2022 | 341 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
Separate account group contracts with individually determined asset investment strategies, profit sharing and guarantees |
◆ |
Contracts with profit sharing based on a pre-determined interest rate |
◆ |
DB subscriptions, a standardized product that offers a one-year guarantee |
◆ |
Contracts without profit sharing |
342 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of the Netherlands | ||||
Aegon Annual Report on Form 20-F 2022 | 343 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
344 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of the Netherlands | ||||
◆ |
Aegon Levensverzekering |
◆ |
Aegon Schadeverzekering |
◆ |
Aegon Spaarkas |
Aegon Annual Report on Form 20-F 2022 | 345 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
346 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of United Kingdom | ||||
◆ |
Scottish Equitable plc |
◆ |
Cofunds Limited |
◆ |
Aegon Investment Solutions Limited |
◆ |
Aegon Investments Limited |
Aegon Annual Report on Form 20-F 2022 | 347 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
Personalized Member Experience – A series of developments to enhance our employee digital portal and app starting with the launch of a new digital financial education platform supported by live television events from Pension Geeks in 2022. This will be followed by a series of enhancements to digitize key journeys and enhance the tools/support provided to customers. |
◆ |
Environmental, social, and governance (ESG) Integration – ESG is now integrated within our workplace default investments with c. GBP 15.6 billion of assets at December 31, 2022 in optimised and screeded strategies (2021: c. GBP 12.1 billion). |
◆ |
Delivering a program of enhancements to existing processes/journeys to drive value through existing adviser relationships. |
◆ |
Transforming the user experience and core journeys for the core Aegon Retirement Choices/Aegon One Retirement offerings – this has been developed over the last two years and will be rolled out to advisers and customers during 2023 which will accelerate the pace of new proposition delivery. |
348 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of United Kingdom | ||||
◆ |
An institutional trading platform which powers 26 of the UK’s leading platforms, wealth management firms, and investment houses (for example Brooks Macdonald and Charles Stanley) |
◆ |
An investment-only proposition for Workplace pension schemes, which provides access to insured funds for approximately 140 clients. |
Aegon Annual Report on Form 20-F 2022 | 349 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
350 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of International | ||||
◆ |
Aegon España S.A.U. de Seguros y Reaseguros (Aegon España Insurance and Reinsurance) |
◆ |
Santander Generales Seguros y Reaseguros S.A. (Santander General Insurance and Reinsurance) (51%) |
◆ |
Santander Vida Seguros y Reaseguros S.A. (Santander Life Insurance and Reinsurance) (51%) |
◆ |
Aegon Santander Portugal Não Vida-Companhia de Seguros S.A. (Aegon Santander Portugal Non-Life Insurance Co.) (51%) |
◆ |
Aegon Santander Portugal Vida-Companhia de Seguros de Vida S.A. (Aegon Santander Portugal Life Insurance Co.) (51%) |
◆ |
Transamerica Life (Bermuda) Ltd. |
◆ |
Aegon THTF Life Insurance Co., Ltd. (50%) in China |
◆ |
Mongeral Aegon Seguros e Previdência S.A. (54.9%) |
◆ |
Sicoob Seguradora de Vida e Previdência S.A. (27.5%) |
◆ |
Aegon Towarzystwo Ubezpieczeń na Życie Spółka Akcyjna (Aegon Poland Life) |
◆ |
Aegon Powszechne Towarzystwo Emerytalne Spółka Akcyjna (Aegon Poland Pension Fund Management Co.) |
◆ |
Aegon Pensii Societate de Administrare a Fondurilor de Pensii Private S.A (Aegon Romania Pension Administrator Co.) |
◆ |
Aegon Life Insurance Company Ltd. (49%) in India |
◆ |
Aegon Insights Ltd |
Aegon Annual Report on Form 20-F 2022 | 351 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
352 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of International | ||||
Aegon Annual Report on Form 20-F 2022 | 353 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
354 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of International | ||||
◆ |
General Directorate of Insurance and Pension Funds (DGSFP) (Spain) |
◆ |
The Insurance and Pension Funds Supervisory Authority (ASF) (Portugal) |
◆ |
The Financial Supervision Authority (KNF) (Poland) |
◆ |
Authority for Financial Supervision (ASF) (Romania) |
Aegon Annual Report on Form 20-F 2022 | 355 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
Private Insurance Superintendence (SUSEP) (Insurance and Open Private Pension) |
◆ |
National Superintendence of Complementary Pensions (PREVIC) (Pension Funds) |
◆ |
The Brazilian Central Bank (BACEN) (Collection) |
◆ |
Securities and Exchange Commission (CVM) (Asset Management) |
356 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of Asset Management | ||||
◆ |
In China, Aegon AM owns 49% of Aegon Industrial Fund Management Company (AIFMC), a Shanghai-based asset manager that offers mutual funds, segregated accounts, and advisory services |
◆ |
In France, Aegon AM owns 25% of La Banque Postale Asset Management (LBPAM). LBPAM offers a comprehensive range of investment strategies to French institutional clients and to retail investors through La Banque Postale group’s retail banking network and affiliated insurance company Caisse Nationale de Prévoyance (CNP) |
Aegon Annual Report on Form 20-F 2022 | 357 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
358 | Aegon Annual Report on Form 20-F 2022 |
Additional information Overview of Asset Management | ||||
Aegon Annual Report on Form 20-F 2022 | 359 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
Rapidly rising interest rates |
◆ |
Interest rate volatility, and sustained low or negative interest rate levels |
◆ |
Disruptions in the global financial markets and general economic conditions |
◆ |
Higher inflation |
◆ |
Illiquidity of certain investment assets |
◆ |
Credit risk, declines in value and defaults in Aegon’s debt securities, private placements, mortgage loan portfolios and other instruments or the failure of certain counterparties |
◆ |
Decline in equity markets |
◆ |
Downturn in the real estate market |
◆ |
Default of a major market participant |
◆ |
Failure by reinsurers to which Aegon has ceded risk |
◆ |
Downgrade in Aegon’s credit ratings |
◆ |
Fluctuations in currency exchange rates |
◆ |
Unsuccessful management of derivatives |
◆ |
Subjective valuation of Aegon’s investments, allowances and impairments |
◆ |
Differences between actual claims experience/underwriting and reserve assumptions |
◆ |
Products with guarantees |
◆ |
Restrictions on underwriting criteria and the use of data |
◆ |
Unexpected return on offered financial and insurance products |
◆ |
Reinsurance may not be available, affordable, or adequate |
◆ |
Catastrophic events |
◆ |
Competitive factors |
◆ |
Difficulty in managing the company’s acquisitions and divestments |
◆ |
Difficulties in distributing and marketing products through its current and future distribution channels. |
◆ |
Inability to adapt to and apply new technologies |
◆ |
Failure of data management and governance |
◆ |
Epidemics or pandemics |
360 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
◆ |
Unsuccessful in managing exposure to climate risk and adequately adapting investment portfolios |
◆ |
Unidentified or unanticipated risk events |
◆ |
Failure of Aegon’s information technology or communications systems |
◆ |
Computer system failure or security breach |
◆ |
Breach of data privacy or security obligations |
◆ |
Inaccuracies in econometric, financial, or actuarial models, or differing interpretations of underlying methodologies |
◆ |
Inaccurate, incomplete or unsuccessful quantitative models, algorithms or calculations |
◆ |
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 |
◆ |
Inability to attract and retain personnel |
◆ |
Requirement to increase 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 |
◆ |
Political or other instability in a country or geographic region |
◆ |
Changes in accounting standards |
◆ |
Inability of Aegon’s subsidiaries to pay dividends to Aegon N.V. |
◆ |
Risks of application of intervention measures |
◆ |
Unfavorable outcomes of legal and arbitration proceedings and regulatory investigations and actions |
◆ |
Changes in government regulations in the jurisdictions in which Aegon operates |
◆ |
Increased attention to ESG matters and evolving ESG standards and requirements |
◆ |
Tax risks |
◆ |
Judgments of US courts may not be enforceable against Aegon in Dutch courts |
◆ |
Inability to manage risks associated with the reform and replacement of benchmark rates |
◆ |
Inability to protect intellectual property |
◆ |
Volatility of Aegon’s share price |
◆ |
Offering of additional common shares in the future |
◆ |
Significant influence of Vereniging Aegon over Aegon’s corporate actions |
◆ |
Currency fluctuations |
◆ |
Influence of Perpetual Contingent Convertible over the market price for Aegon’s common shares |
Aegon Annual Report on Form 20-F 2022 | 361 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
362 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
Aegon Annual Report on Form 20-F 2022 | 363 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
364 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
Aegon Annual Report on Form 20-F 2022 | 365 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
366 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
Aegon Annual Report on Form 20-F 2022 | 367 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
368 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
Aegon Annual Report on Form 20-F 2022 | 369 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
370 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
Aegon Annual Report on Form 20-F 2022 | 371 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
372 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
Aegon Annual Report on Form 20-F 2022 | 373 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
On September 22, 2021 the European Commission has recently published a formal legislative proposal for amendments to the Solvency II Directive following an extensive technical advice by EIOPA to the European Commission. Proposals to amend the Solvency II Delegated Regulation, amend existing or introduce additional technical standards and/or EIOPA guidelines may follow in a later stage. The impact on Aegon’s financial position and results depends on the final form of the requirements, standards and guidelines; |
◆ |
Following the end of the Brexit transition period on December 31, 2020, UK insurers are no longer directly subject to regulation under the EU’s Solvency II. The UK government held a consultation between the end of April and July 2022 as a part of its review of the insurance prudential regime in the UK, with the stated aim to introduce a simpler, clearer, and much more tailored regime, compared to European Union’s Solvency II framework. Increasing divergence cannot be ruled out going forward which could further impact the UK capital ratio; |
◆ |
In the US, the NAIC periodically updates various prudential requirements. The NAIC is currently embarking on a project to reconsider the RBC treatment of structured investments. These initiatives or other regulatory changes to capital factors may lead to higher risk-based capital requirements. In addition, the NAIC has constructed a US group capital calculation (‘GCC’) using an RBC aggregation approach that would be used by regulators as a monitoring tool. The results of the GCC could impact the translation of RBC in the Group capital ratio for the United States; and |
◆ |
Aegon utilizes affiliated captive insurance companies to manage risks of various insurance policies issued before the adoption of principle-based reserves, including universal life with secondary guarantees and level term life insurance. These structures have been utilized to finance regulatory reserves. To the extent that state insurance regulations restrict or require insurers to restate the valuation of the assets used to finance these structures, this could increase costs or reduce available capital. |
374 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
Aegon Annual Report on Form 20-F 2022 | 375 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
376 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
Aegon Annual Report on Form 20-F 2022 | 377 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
378 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
Aegon Annual Report on Form 20-F 2022 | 379 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
380 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
◆ |
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 regarding potential impact on Aegon’s customers, and engagement during the transition period. |
◆ |
Investor perception of Aegon as a company; |
◆ |
Actual or anticipated fluctuations in Aegon’s results of operations; |
◆ |
Announcements of intended acquisitions, disposals (and related approvals or refusals from governmental or regulatory authorities) or financings, or speculation about such acquisitions, disposals (and related approvals or refusals from governmental or regulatory authorities) or financings; |
◆ |
Changes in Aegon’s dividend policy, which may result from changes in Aegon’s cash flow and capital position; |
◆ |
Offering of additional shares by Aegon or sales of blocks of Aegon’s shares by significant shareholders, including Vereniging Aegon; |
◆ |
A downgrade or rumored downgrade of Aegon’s credit or financial strength ratings, including placement on credit watch; |
◆ |
Potential litigation or regulatory actions involving Aegon or the insurance industry in general; |
◆ |
Changes in financial estimates and recommendations by securities research analysts; |
◆ |
Fluctuations in capital markets, including foreign exchange rates, interest rates and equity markets; |
◆ |
The performance of other companies in the insurance sector; |
Aegon Annual Report on Form 20-F 2022 | 381 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
Regulatory developments in the United States, the Netherlands, the United Kingdom, and other countries in which Aegon operates; |
◆ |
International political and economic conditions, including the effects of terrorist attacks, military operations and other developments stemming from such events, and the uncertainty related to these developments; |
◆ |
News or analyst reports related to markets or industries in which Aegon operates; and |
◆ |
General insurance market conditions. |
382 | Aegon Annual Report on Form 20-F 2022 |
Additional information Risk factors Aegon N.V. | ||||
Aegon Annual Report on Form 20-F 2022 | 383 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
384 | Aegon Annual Report on Form 20-F 2022 |
Additional information Property, plant and equipment | ||||
Aegon Annual Report on Form 20-F 2022 | 385 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
2022 |
2021 | 2020 | ||||||||||
Americas |
6,153 | 7,675 | 7,960 | |||||||||
The Netherlands |
4,567 | 3,855 | 3,930 | |||||||||
United Kingdom |
2,621 | 2,476 | 2,307 | |||||||||
International |
4,281 | 6,590 | 6,598 | |||||||||
Asset Management |
1,464 | 1,675 | 1,527 | |||||||||
19,087 |
22,271 |
22,322 |
||||||||||
Of which Aegon’s share of employees in joint ventures and associates |
3,507 | 4,228 | 4,193 |
386 | Aegon Annual Report on Form 20-F 2022 |
Additional information Dividend policy | ||||
Aegon Annual Report on Form 20-F 2022 | 387 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
388 | Aegon Annual Report on Form 20-F 2022 |
Additional information Memorandum and Articles of Association | ||||
◆ |
The objects of Aegon are to incorporate, acquire and alienate shares and interests in, to finance and grant security for commitments of, to enter into general business relationships with, and to manage and grant services to legal entities and other entities, in particular those involved in the insurance business, and to do all that is connected therewith or which may be conducive thereto, all to be interpreted in the broadest sense; and |
◆ |
In achieving the aforesaid objects due regard shall be taken, within the scope of sound business operations, to provide fair safeguards for the interests of all the parties directly or indirectly involved in Aegon. |
◆ |
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 N.V., a tender offer for Aegon N.V. 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 the Supervisory Board. 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 General Meeting of Shareholders may, at the proposal of the Executive Board, as approved by the Supervisory Board, resolve to reduce the outstanding capital either by (i) repurchasing shares and subsequently canceling them, or (ii) by reducing their nominal share value; |
◆ |
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. |
◆ |
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 Supervisory Board of Aegon N.V. |
Aegon Annual Report on Form 20-F 2022 | 389 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
390 | Aegon Annual Report on Form 20-F 2022 |
Additional information Differences between Dutch and US company laws |
Aegon Annual Report on Form 20-F 2022 | 391 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
Business Combination Agreement (BCA); Agreement between Aegon Europe Holding B.V. and Aegon N.V. and ASR Nederland N.V., dated October 26, 2022, relating to the combination of ASR Nederland N.V. and Aegon Nederland N.V. |
392 | Aegon Annual Report on Form 20-F 2022 |
Additional information Exchange controls | ||||
Aegon Annual Report on Form 20-F 2022 | 393 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
◆ |
Financial institutions; |
◆ |
Insurance companies; |
◆ |
Dealers or traders in securities or currencies; |
◆ |
Tax-exempt entities; |
◆ |
Regulated investment companies; |
◆ |
Persons that at any time hold the common shares as part of a ‘hedging’ or ‘conversion’ transaction or as a position in a ‘straddle’ or as part of a ‘synthetic security’ or other integrated transaction for US Federal income tax purposes; |
◆ |
US expatriates and former citizens or former residents of the United States; |
◆ |
Persons subject to special tax accounting rules as a result of any item of gross income with respect to the stock being taken into account in an applicable financial statement; |
◆ |
Holders that own (or are deemed to own for US Federal income tax purposes) 10% or more of the shares of Aegon by vote or value; |
◆ |
Partnerships, or arrangements treated as partnerships for US tax purposes, or pass-through entities or persons who hold common shares through partnerships or other pass-through entities; and |
◆ |
Holders that have a ‘functional currency’ other than the US dollar. |
◆ |
A citizen or individual resident of the United States; |
◆ |
A corporation created or organized in or under the laws of the United States or any state of the United States (including the District of Columbia); |
◆ |
An estate, the income of which is subject to US Federal income taxation regardless of its source; |
◆ |
A trust, if a court within the United States is able to exercise primary supervision over its administration and one or more US persons have the authority to control all of the substantial decisions of such trust. |
394 | Aegon Annual Report on Form 20-F 2022 |
Additional information United States tax consequences to holders of shares | ||||
◆ |
Direct or indirect distributions of profit, regardless of their name or form. |
◆ |
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. |
◆ |
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. |
◆ |
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 |
◆ |
That such person or legal entity has, directly or indirectly, retained or acquired an interest in Aegon common shares or in profit sharing certificates or loans, comparable to the interest it had in similar instruments prior to the series of transactions being initiated. |
Aegon Annual Report on Form 20-F 2022 | 395 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
396 | Aegon Annual Report on Form 20-F 2022 |
Additional information United States tax consequences to holders of shares | ||||
Aegon Annual Report on Form 20-F 2022 | 397 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
in EUR million | 2022 |
2021 | ||||||
Audit fees |
35 | 31 | ||||||
Audit-related service fees |
10 | 3 | ||||||
Tax |
1 | - | ||||||
Other services |
- | - | ||||||
Total |
45 |
35 |
◆ |
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. |
398 | Aegon Annual Report on Form 20-F 2022 |
Additional information 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, 2022 |
10,158,360 | 4.92 | 10,158,360 | - | ||||||||||||
February 1 - 28, 2022 |
- | - | - | - | ||||||||||||
March 1 - 31, 2022 |
- | - | - | 65,921,332 | ||||||||||||
April 1 - 30, 2022 |
6,590,000 | 5.06 | 6,590,000 | 59,331,332 | ||||||||||||
May 1 - 31, 2022 |
3,540,000 | 4.85 | 3,540,000 | 55,791,332 | ||||||||||||
June 1 - 30, 2022 |
10,375,405 | 4.80 | 10,375,405 | 45,415,927 | ||||||||||||
July 1 - 31, 2022 |
14,183,639 | 4.08 | 14,183,639 | 55,596,183 | ||||||||||||
August 1 - 31, 2022 |
16,505,470 | 4.52 | 16,505,470 | 39,090,713 | ||||||||||||
September 1 - 30, 2022 |
16,659,593 | 4.50 | 16,659,593 | 52,264,510 | ||||||||||||
October 1 - 31, 2022 |
20,889,768 | 4.20 | 20,889,768 | 31,374,742 | ||||||||||||
November 1 - 30, 2022 |
22,356,335 | 4.69 | 22,356,335 | 9,018,407 | ||||||||||||
December 1 - 31, 2022 |
9,018,408 | 4.67 | 9,018,408 | - | ||||||||||||
Total |
130,276,978 |
130,276,978 |
1 |
The shares have been purchased as part of a share purchase program, to neutralize the dilution effect of issued stock dividends and agent-related incentive programs. Excluding Aegon shares purchased by index funds controlled by Aegon. Such purchases are made to the extent necessary to maintain a basket of securities within the relevant fund reflecting the underlying index. Please refere to note 20 ‘Dividend per common share’ and to the section ‘Major shareholders’ in the ‘Other information’. |
2 |
Share purchase program to neutralize impact of 2021 final stock dividend and share based-variable compensation plans announced on July 1, 2022 |
3 |
Share purchase program to neutralize impact of 2022 interim stock dividend announced on September 27, 2022 |
Aegon Annual Report on Form 20-F 2022 | 399 |
Non-financial information 2022 |
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401 |
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401 |
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402 |
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405 |
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405 |
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405 |
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407 |
||||
410 |
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410 |
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413 |
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413 |
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417 |
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419 |
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419 |
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422 |
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424 |
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426 |
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427 |
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427 |
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427 |
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430 |
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430 |
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434 |
||||
434 |
||||
435 |
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438 |
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439 |
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441 |
||||
447 |
||||
448 |
||||
451 |
Basis of preparation | ||||
Aegon Annual Report on Form 20-F 2022 | 401 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
∎ |
EU Taxonomy’s eligibility assessment (please see “EU Taxonomy” section on page 413). |
∎ |
Operational energy consumption, air travel and associated GHG emissions: we extrapolate by the area of floorspace where we are missing data on energy use. |
∎ |
Investment carbon footprint: We use extrapolation for indicators including Relative intensity, Weighted average carbon intensity, and Carbon risk rating when underlying carbon data is not available. The availability of data for each indicator is expressed in a coverage ratio as disclosed in the TCFD (pages 427-433) and Value created sections (pages 434-446). |
∎ |
The definition of “Direct employees” changed in 2022 compared to previous years. Based on the new definition, direct employees include employees of Aegon N.V. and its 100% subsidiaries only, and is therefore limited to entities over which Aegon has direct control. In previous years, the employees of joint ventures and associates were presented as part of Direct employees. The 2021 figures have been restated to reflect the new definition. This also impacts the following indicators in Value created table “Employees”: Number of direct employees, as well as all indicators disclosed under the headings Recruitment and retention, Average investment in training and career development per employee and Proportion of women employees, and the following indicators in Value created table “Society”: Total GHG emissions / employee (location-based) and Total GHG emissions / employee (market-based). The 2020 figures were not updated for practical reasons. For more information see the Value created table on pages 434-446. |
∎ |
In the Value created table “Customers” we disclose the number of customers, including a breakdown by region. The number of customers of our joint venture in Brazil is now reported in the category International. In previous years this was reported under Americas. The 2020 and 2021 figures were restated to reflect this change. |
∎ |
In the Value created table “Society”, the 2021 figures for the indicators “Absolute reduction against baseline” and “Relative reduction of scope 1+2 against baseline 2019 (%)” regarding operational carbon footprint have been restated. The 2021 figures have been restated to remove carbon emissions due to air travel (Scope 3). |
402 | Aegon Annual Report on Form 20-F 2022 |
Basis of preparation | ||||
Indicator topics by stakeholder |
Segment |
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Customers |
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Number of customers |
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– |
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Benchmarked Net Promoter Score (NPS) |
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– |
– |
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Complaints |
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– |
– |
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Fines and settlements |
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Claims, benefits and retirement plan withdrawals |
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– |
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Employees |
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Workforce |
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Recruitment and retention |
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Employee engagement |
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Inclusion and diversity |
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Health and safety |
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Compensation and benefits |
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Collective bargaining |
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Business partners |
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Premiums and commissions |
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– |
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Goods and services |
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Investors |
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Corporate governance |
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Supervisory Board oversight |
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Financial returns |
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Sustainability benchmarks |
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Society |
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Responsible investment |
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Climate change (investment footprint) |
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– |
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Climate change (operational footprint) |
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Compliance |
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Information security |
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Responsible tax |
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Community investment |
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reported | |
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not reported | |
– |
not applicable |
Aegon Annual Report on Form 20-F 2022 | 403 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
Disclosure |
Topic |
Page reference 1 (or details of omissions if applicable) | ||
Guiding principles |
Strategic focus and future orientation |
Our strategy and value creation (pages 8-12) | ||
Sustainability (pages 13-17) | ||||
Connectivity of information |
The topics mentioned in Sharing value with our stakeholders (pages 20-29), and performance data provided in Value Created (pages 434-446) | |||
Stakeholder relationships |
Sharing value with our stakeholders (pages 20-29) | |||
Sustainability (page 13) | ||||
Materiality |
Basis of preparation (pages 401-402) | |||
Sustainability (page 13) | ||||
Conciseness |
The section “About Aegon (pages 1-32)” is structured around our material topics, risks, opportunities, strategy, and the performance and value associated with these. We have also applied the materiality principle to define the content of this Annual Report as explained in the sections Sustainability (page 13) and Basis of preparation (pages 401-402) | |||
Reliability and completeness |
Basis of preparation (pages 401-402) | |||
Consistency and comparability |
This Annual Report is prepared in accordance with the International Financial Reporting Standards (IFRS), as issued by the IASB, as well as the Integrated Reporting Framework. Aegon has used the <IR> Framework since 2014. We are making the shift to integrating more material frameworks; like that of the Task Force on Climate-related Financial Disclosures (pages 427-433). | |||
Content elements |
Organizational overview and external environment |
About Aegon (pages 2-3) | ||
Governance |
Corporate governance, including Sustainability governance (pages 36-41) | |||
Business model |
Our strategy and value creation (pages 8-12) | |||
Value creation (pages 18-19) | ||||
Risk and opportunities |
Sustainability (pages 13-17) | |||
Strategy and resource allocation |
Our strategy and value creation, including Sustainability (pages 8-17) | |||
Sharing value with our stakeholders (pages 20-29) | ||||
Performance |
Performance in 2022 (pages 30-32) | |||
Value created (pages 434-446) | ||||
Outlook |
Performance in 2022 (pages 30-32) | |||
Basis of preparation and presentation |
Basis of preparation (pages 401-404) |
1 |
All page numbers in this table refer to Aegon’s Annual Report 2022, unless otherwise stated. Where there are several examples, |
only principal references are included. |
404 | Aegon Annual Report on Form 20-F 2022 |
Sustainability approach | ||||
Aegon Annual Report on Form 20-F 2022 | 405 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
Material Topic |
KPI(s) |
Target for 2022 |
Performance in 2022 |
Target for 2023 | ||||
Climate change Priority theme |
∎ 1 (metric tons CO2 e / EURm revenue) |
∎ |
∎ |
∎ | ||||
∎ 2 (Scopes 1&2) (metric tons CO2 e) |
∎ |
∎ |
∎ | |||||
∎ |
∎ |
∎ |
∎ | |||||
∎ |
∎ |
∎ |
∎ | |||||
Inclusion and diversity Priority theme |
∎ 3 (%) |
∎ |
∎ |
∎ | ||||
Responsible investing |
∎ 4 |
∎ |
∎ |
∎ | ||||
Responsible products, treating customers fairly |
∎ |
∎ |
∎ |
∎ | ||||
Talent management |
∎ 5 (%) |
∎ |
∎ |
∎ | ||||
Business conduct and risk management |
∎ |
∎ |
∎ |
∎ | ||||
Customer experience |
∎ ® ) in our core markets6 |
∎ |
∎ ∎ ∎ |
∎ | ||||
Cybersecurity and data protection |
∎ |
∎ |
∎ |
∎ | ||||
Good health and wellbeing |
∎ 7 (%) |
∎ |
∎ |
∎ |
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 433. (* 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.) |
2 |
Aegon has set a target to reduce the carbon footprint of its operational activities by 25% by 2025 against a 2019 baseline (using the location-based measurement). Operational GHG emissions include Scope 1 and 2 emissions. |
3 |
In this context, senior management includes our Management Board and extends up to two levels below the Management Board (depending on the number of employees in each business unit). The 2021 and 2022 target and performance data do not include employees in our Central & Eastern Europe businesses that are in the process of being divested. The 2023 target does not cover Aegon the Netherlands due to the expected divestment in 2023. |
4 |
Aegon actively engages with investee companies across a wide range of industries to improve their ESG profile and address sustainability issues. |
5 |
The Global Employee Survey is provided through Culture Amp ® . All employees, including those in joint ventures, participate in the survey on a voluntary basis. New hires employed for under three months do not participate. 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 2022, three engagement surveys were conducted throughout the year (Q1, Q2, and Q3). The participation rate for the most recent survey was 79%. |
6 |
Customer satisfaction is measured in terms of benchmarked Net Promoter Score(SM) (NPS ® ), and is based on the question: “How likely are you to recommend Aegon/Transamerica to a friend or colleague?” It is a single, easy-to-understand metric that predicts overall company growth and customer lifetime value. Customers answer based on a 0 to 10 scale, where those answering 9 or 10 are deemed “promoters”, those answering 7 or 8 are “passive”, and 0 to 6 are “detractors”. NPS® is calculated by subtracting the percentage of detractors from the percentage of promoters. On an annual basis, we measure the NPS of our core markets (the Netherlands, the United Kingdom, and the United States) and compare findings against peers in each local market. To achieve this, each core market worked with local research experts who specialize in NPS benchmarking. The peer groups are re-assessed each year to ensure a fair representation of the market. |
◾ |
The Netherlands: In partnership with Ipsos, the aggregated gap-to-market average score was calculated as a weighted average of the gap-to-market average of the various lines of business in active markets in the Netherlands. Weights are based on the number of contracts in each business line. |
◾ |
The United Kingdom: With input from Bilendi, an independent market sample was obtained to gather information about Aegon and its competitors. The gap-to-market score is calculated as the difference between the Aegon NPS ® and the average NPS® of all active brands in the market. |
◾ |
The United States: In partnership with Qualtrics, the required sample size was collected through an external consumer panel for both the Life and Retirement businesses. The aggregated gap-to-market average is calculated by weighing the gap-to-market average for Life and Retirement. Weights are based on the number of contracts for Life and the number of participants for Retirement. |
◾ |
With regards to the definition of “peers” for each core market: |
◾ |
In the Netherlands, the competitive set used per line of business for the survey consisted of 31 brands (life), 37 brands (pension schemes), 25 brands (savings), 42 brands (P&C), and 35 brands (mortgages) |
◾ |
In the United Kingdom, the competitive set used for the survey consisted of 10 brands (pension provider peers) |
◾ |
In the United States, the competitive set per line of business used for the survey consisted of 19 brands (life) and 19 brands (retirement) |
7 |
Employee absence refers to time off from work as a result of illness or injury. It excludes permitted leave of absence such as holiday, study/training, maternity or paternity leave and compassionate leave. |
406 | Aegon Annual Report on Form 20-F 2022 |
Sustainability approach | ||||
Material topic |
Related Policy / Statement / Procedure |
Description | ||
Climate change |
Environmental Policy |
Externally published statement outlining how Aegon seeks to reduce the negative impacts of its direct business operations on the environment whilst maximizing opportunities for performance improvement. | ||
Responsible Investment Policy |
Please see below in this table the description of the Responsible Investment Policy. | |||
Inclusion and diversity |
Statement on Inclusion and Diversity |
Externally published statement setting out Aegon’s approach to inclusion and diversity to create an environment where our employees can bring their authentic selves to work. The statement incorporates our commitment to enabling this through our actions and inclusive policies. The statement applies to all Aegon businesses worldwide. | ||
Responsible investing |
Responsible Investment Policy |
Externally published policy acting as the basis for how our assets should be managed consistently with our responsible business objectives and relevant laws and governance standards. It is applicable to all of our proprietary assets globally, regardless of country of operation or whether they are managed by Aegon business units or externally. Local business units within Aegon may implement additional mechanisms to further identify, manage, and mitigate ESG risks, within the context of local norms and stakeholder expectations. The policy covers all major asset classes and sets out minimum social and environmental standards for Aegon’s investments that incorporates exclusions in areas including controversial weapons, tobacco, Arctic or oil sands production, and transportation and thermal coal. The policy also incorporates a commitment to net-zero emissions, to help to ensure the reduction in the weighted average carbon intensity of the company’s investment portfolio is aligned with its net-zero ambitions. | ||
Investment and Counterparty Risk Policy |
An internal policy which includes requirements for constructing investment mandates between the asset owner and the asset manager. Sustainability risks relating to the investment portfolio need to be identified, assessed and managed, and taken into account in the Asset Liability Management strategy. It applies to all assets and liabilities from the general account and the separate account of all material businesses of Aegon for which it has operational control. | |||
Solid financial performance |
Enterprise Risk Management (ERM) Policy |
Internal policy document which sets the risk appetite of the company. Among others, it aims to ensure that Aegon and its operating companies are adequately capitalized and that obligations towards policyholders are always adequately met. It applies to all material businesses of Aegon for which the company has operational control. | ||
Capital Management Policy |
Internal policy document which governs the company’s view on the level of capitalization of local units, and the capitalization of the company through the amount of Cash Capital and gross financial leverage. In addition, it sets out key expectations on when business units are expected to pay remittances, and when business units can expect capital support from the Holding. | |||
Responsible products, treating customers fairly |
Pricing and Product Development Policy |
Internal policy overseen by the Global Chief Actuary, detailing the company’s approach to pricing and product development. It takes into account, among others, ensuring a reasonable distribution of return/value to all stakeholders, fair treatment of customers, and taking customer needs, including sustainability preferences, into account in the product approval process. | ||
Talent management |
Talent principles and talent review framework |
Internal guidelines and processes setting out the company’s approach to talent management, to ensure we have the right people in the right place to deliver on our business ambitions. | ||
Performance and development cycle |
Internal guidelines and processes setting out the company’s approach to performance management for its people with a focus on current performance, and future development and growth potential. | |||
Business conduct and risk management |
Code of Conduct |
Externally published document prescribing a mandatory set of conditions 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 our stakeholders. Training on the Code of Conduct is mandatory for all employees. |
1 |
These policies and procedures are simply being provided for informational purposes and are not incorporated into our Annual Report on Form 20-F, except where expressly indicated. |
Aegon Annual Report on Form 20-F 2022 | 407 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Material topic |
Related Policy / Statement / Procedure |
Description | ||
Business conduct and risk management |
Speak Up |
Externally published policy supplementing the Aegon Code of Conduct. Aegon Speak Up provides a safe environment for anyone who wishes to raise a concern about suspected or observed misconduct that involves Aegon. The policy applies to all Aegon businesses worldwide (including all business units, subsidiaries and joint ventures that are majority owned, and controlled by Aegon). It also extends to customers, business partners, shareholders and the public in general. | ||
Anti-Bribery and Corruption Policy |
The Aegon Code of Conduct contains guidance on the prevention of bribery and corruption (including gifts and entertainment). The internally published Aegon Anti-Bribery and Corruption (ABC) Policy provides further principles and guidelines to help Aegon employees to make the right decision. The policy is applicable to all Aegon business units. | |||
Conflict of Interest Policy |
The Aegon Code of Conduct contains guidance on conflicts of interest. The internally published Aegon Conflict of Interest Policy defines the principles regarding potential conflicts of interest applicable to all Aegon business units, which should be implemented in their local unit. The aim of the policy is to provide further guidelines to help Aegon employees recognize a potential conflict of interest and to help them handle the situation. | |||
Operational Risk Policy |
Internal policy covering the operational risk universe (taxonomy), including conduct. It aims to ensure that Aegon maintains a prudent operational risk profile under both normal business conditions and under extreme conditions caused by unforeseen events. It applies to all businesses of Aegon for which it has operational control. | |||
Customer experience |
Market Conduct Compliance Policy |
Internal policy containing key requirements regarding market conduct, aiming to prevent or mitigate customers detriment, to support a proper management of conflicts of interests (including acting in accordance with the best interest of customers) and to ensure that the interests, objectives and characteristics of customers are duly taken into account. It applies to all strategic business units over which Aegon has operational control. | ||
Benchmarked NPS ® Process |
Internal process document outlining the process to measure Benchmarked NPS ® in Aegon’s core markets (the United States, the United Kingdom, and the Netherlands). The quality control, including the approach and methodology, is centrally ensured, while the business units in the company’s core markets are responsible for commissioning field studies, as well as monitoring and communicating results. | |||
Cybersecurity and privacy |
Global Information Security Policy |
Internal policy overseen by the Global Chief Information Security Officer, setting out the company’s approach to cyberthreats and data protection. The policy applies to all Aegon businesses worldwide (including all units, entities, or joint ventures where Aegon has operational control) and is supported by mandatory training in data and cybersecurity. | ||
Good health and wellbeing (longevity) |
Global Health and Safety Statement |
Externally published statement committing Aegon to provide and maintain high health and safety standards across all its business units worldwide, outlining our objectives and expectations. | ||
Other topics |
Related Policy / Statement / Procedure |
Description | ||
Community investment |
Charitable Donations Standards |
Externally published set of standards covering Aegon’s objectives with regard to community investment, including key themes (“financial security and education” and “wellbeing and longevity”), selection criteria, governance, and approval. The standards also detail Aegon’s contribution to humanitarian aid. | ||
Compensation and benefits |
Global Remuneration Framework |
Internal framework, detailing the company’s approach to pay. The Framework is based on the principle of pay for performance, setting down the principles of governance covering both fixed and variable pay. On variable pay, remuneration for Aegon executives and other senior management is based on both financial and non-financial performance metrics (including employee engagement and customer loyalty scores). | ||
Human rights |
Statement on Human Rights |
Externally published statement designed to frame Aegon’s ongoing stewardship of human rights, including both the direct impacts of our daily operations as well as the indirect impacts of our business activities. Based on the Universal Declaration of Human Rights, core standards of the International Labor Organization (ILO), and the principles of the UN Global Compact. The statement commits Aegon to upholding international human rights standards at all businesses where the company has sufficient management control and, where possible, to help ensure partners uphold the same standards. The statement is supported by a regular human rights risk assessment, covering Aegon’s businesses in the Americas, Europe, and Asia. (Note: Please see below for further information on our approach to human rights.) | ||
Responsible sourcing |
Vendor Code of Conduct |
Externally published document containing the standards for the business relationship between Aegon and its vendors in order to enable Aegon to manage the most material business conduct, social, and environmental risks (also referred to as sustainability risks) associated with its procurement of goods and services under the following categories: - Corporate governance - Human rights - Labor rights and good health and wellbeing - Climate change and biodiversity Aegon requires its vendors to comply with the Code and assesses the ESG-related performance of those vendors against its standards. | ||
Responsible tax |
Global Tax Policy and Principles of Conduct |
Externally published policy outlining Aegon’s approach to responsible taxpaying, which seeks to align the long-term interests of all our stakeholders, including customers, employees, business partners, investors, and wider society. Aegon seeks to pay “fair taxes”, which means paying the right amount of tax in the right places. |
408 | Aegon Annual Report on Form 20-F 2022 |
Sustainability approach | ||||
Aegon Annual Report on Form 20-F 2022 | 409 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
410 | Aegon Annual Report on Form 20-F 2022 |
Regulation and compliance |
Topic |
Sub-topic |
Section Reference (AR 2022) |
Equivalent requirement under Dutch law 2 | |||
Business model |
Brief description of company’s business model |
Our strategy and value creation (pages 8-12) Value creation (pages 18-19) |
Decree non-financial information (article 3.1.a) | |||
Relevant environmental matters (including climate-related impacts) |
Description of policies relating to environmental matters (including due diligence processes implemented) |
Sustainability (pages 13-17) Table under “Policies and procedures” (pages 407-408) TCFD (pages 427-433) |
Decree non-financial information (article 3.1.b) | |||
The outcome of these policies |
Sustainability (pages 13-17) Sharing value with our stakeholders (page 28) TCFD (pages 427-433) Tables under “Value created”: Society/Responsible investment and Climate change (Investment footprint, and Operational footprint) (pages 441-446) |
|||||
Description of the principal risks (in own operations and in value chain) and how these risks are managed |
Risk management (pages 77-82) Regulation and supervision (pages 89-92) Risk factors Aegon N.V. (pages 360-383) TCFD (pages 427-433) |
Decree non-financial information (article 3.1.c) | ||||
Non-financial key performance indicators relating to environmental matters |
Sustainability approach/ Non-financial key performance indicators (pages 405-406) TCFD (pages 427-433) Tables under “Value created”: Society/Responsible investment and Climate change (Investment footprint, and Operational footprint) (pages 441-446) |
Decree non-financial information (article 3.1.d) | ||||
Relevant social and employee matters |
Description of the policies relating to social and employee matters (including due diligence processes implemented) |
Sustainability (pages 15-16) Table under “Policies and procedures” (pages 407-408) |
Decree non-financial information (article 3.1.b) | |||
The outcome of these policies |
Sustainability (pages 15-16) Sharing value with our stakeholders (pages 20-26, 28)Tables under “Value created”: Customers/Customer experience (Customer satisfaction) (page 434) Employees/Inclusion and diversity, Talent management and Good health and wellbeing) (pages 435-437) Society/Responsible investment (pages 441-446) |
|||||
Description of the principal risks (in own operations and in value chain) and how these risks are managed |
Risk management (pages 77-82) Regulation and supervision (pages 89-92) Risk factors Aegon N.V. (pages 360-383) |
Decree non-financial information (article 3.1.c) | ||||
Non-financial key performance indicators relating to social and employee matters |
Sustainability approach/ Non-financial key performance indicators (pages 405-406) Tables under “Value created”: Customers/Customer experience (Customer satisfaction) (page 434) Employees/Inclusion and diversity, Talent management (Recruitment and retention, and Employee engagement), and Good health & wellbeing (pages 435-437) Society/Responsible investment (pages 441-446) |
Decree non-financial information (article 3.1.d) |
1 |
As included in the EU Accounting Directive. |
2 |
The EU Non-Financial Reporting Directive was transposed into Dutch law through two decrees relating respectively to non-financial information and diversity policy (“Besluit bekendmaking niet-financiële informatie”/”Besluit Bekendmaking diversiteitsbeleid”, included in the “Besluit tot vaststelling nadere voorschriften omtrent de inhoud van het jaarverslag”). |
Aegon Annual Report on Form 20-F 2022 | 411 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
Topic |
Sub-topic |
Section Reference (AR 2022) |
Equivalent requirement under Dutch law 2 | |||
Relevant matters with respect for human rights |
Description of policies relating to respect for human rights (including due diligence processes implemented) |
Additional table under “Policies and procedures” (page 408) Sustainability approach/Human rights (page 409) |
Decree non-financial information (article 3.1.b) | |||
The outcome of these policies |
Sustainability approach/Human rights (page 409) Tables under “Value created”: Employees/Inclusion and diversity (Work-related incidents and complaints) (pages 435-437) Society/Responsible investment (pages 441-442) |
|||||
Description of the principal risks (in own operations and in value chain) and how these risks are managed |
Sustainability approach/Human rights (page 409) | Decree non-financial information (article 3.1.c) | ||||
Non-financial key performance indicators relating to human rights matters |
Sustainability approach/Human rights (page 409) | Decree non-financial information (article 3.1.d) | ||||
Relevant matters with respect to anti-corruption and bribery |
Description of policies relating to anti-corruption and bribery matters (including due diligence processes implemented) |
Table under “Policies and procedures” (pages 407-408) Governance and risk management/Code of conduct (page 93) |
Decree non-financial information (article 3.1.b) | |||
The outcome of these policies |
Tables under “Value created”: Society/Responsible investment and Compliance (pages 441-446) |
|||||
Description of the principal risks with regard to anti- corruption and bribery; and, how these risks are managed |
Risk management (pages 77-82) Regulation and supervision (pages 89-92) Risk factors Aegon N.V. (pages 360-383) |
Decree non-financial information (article 3.1.c) | ||||
Non-financial key performance indicators relating to anti-corruption and bribery |
Sustainability approach/Non-financial key performance indicators (pages 405-406) Tables under “Value created”: Society/Responsible investment and Compliance (pages 441-446) |
Decree non-financial information (article 3.1.d) | ||||
Diversity |
Diversity of the Management Board and Supervisory Board |
Diversity section of Aegon’s Corporate Governance Statement 2022. Regulation and compliance/ Dutch Act on gender diversity at the top (pages 417-418) Tables under “Value created”: Employees/Inclusion and diversity (pages 435-437) Investors/Corporate governance (pages 439-440) |
Decree content of the management report (article 3a) |
1 |
As included in the EU Accounting Directive. |
2 |
The EU Non-Financial Reporting Directive was transposed into Dutch law through two decrees relating respectively to non-financial information and diversity policy (“Besluit bekendmaking niet-financiële informatie”/”Besluit Bekendmaking diversiteitsbeleid”, included in the “Besluit tot vaststelling nadere voorschriften omtrent de inhoud van het jaarverslag”). |
412 | Aegon Annual Report on Form 20-F 2022 |
Regulation and compliance | ||||
∎ |
Substantially contributing to one of the six EU environmental objectives: |
1. | Climate change mitigation |
2. | Climate change adaptation |
3. | Sustainable use and protection of water and marine resources |
4. | Circular economy |
5. | Pollution prevention and control |
6. | Protection and restoration of biodiversity and ecosystems |
∎ |
Doing no harm to any of the other objectives, and |
∎ |
Meeting minimum safeguards, including the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. |
Aegon Annual Report on Form 20-F 2022 | 413 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
414 | Aegon Annual Report on Form 20-F 2022 |
Regulation and compliance | ||||
EU Taxonomy underwriting |
Eligibility based on actual information | |||
(mandatory disclosure) | ||||
Absolute premium (EUR million) |
% of non-life premium | |||
Eligible non-life activities |
86 | 5% | ||
Of which reinsured |
6 | |||
Taxonomy-non-eligible |
1,827 | 95% | ||
Total premium non-life |
1,913 |
EU Taxonomy investment (on-balance) |
Eligibility based on actual information (mandatory disclosure) |
Eligibility including estimates (mandatory and voluntary disclosure) | ||||||
Absolute value (EUR million) |
Percentage of investments covered |
Absolute value (EUR million) |
Percentage of investments covered | |||||
Eligible investments (numerator) |
44,217 | 13% | 56,858 | 18% | ||||
Of which general account investments |
43,625 | 53,814 | ||||||
Of which Investments for account of policyholders |
443 | 2,895 | ||||||
Of which real estate for own use |
149 | 149 | ||||||
Non-eligible investments (numerator) |
259,717 | 81% | 247,076 | 77% | ||||
Excluded from numerator only: |
11,155 | 3% | 11,155 | 3% | ||||
exposures to derivatives |
||||||||
Excluded from numerator only: |
5,622 | 2% | 5,622 | 2% | ||||
exposures to undertakings that are not obliged to publish non-financial information pursuant to Article 19a or 29a of Directive 2013/34/EU and data is not available |
||||||||
Total investments covered (denominator) |
320,711 |
320,711 |
||||||
Excluded from numerator and denominator: exposures to central governments, central banks and supranational issuers |
21,138 |
21,138 |
||||||
Total investments in scope |
341,850 |
341,850 |
||||||
Which includes: |
||||||||
Investments general account |
131,443 | 131,443 | ||||||
Investments for account of policyholders |
199,102 | 199,102 | ||||||
Derivatives |
11,155 | 11,155 | ||||||
Real estate for own use |
149 | 149 |
1 |
The percentage of eligible investments of total investments in scope is 13% (44,217/341,749) and over total assets is 11% (44,217/402,682). |
Aegon Annual Report on Form 20-F 2022 | 415 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
Breakdown of eligible investments |
Eligibility per investment class covered |
Eligibility determined based on actual information (part of mandatory disclosure) |
Eligibility determined based on estimates (part of voluntary disclosure) |
|||||||||||||||||
Eligible (absolute value) (EUR million) |
Total value of investment class covered (EUR million) |
Percentage of investment class covered |
||||||||||||||||||
General account investments in scope: |
||||||||||||||||||||
Shares |
10 | 493 | 2% | No | Yes | |||||||||||||||
Debt securities |
8,065 | 52,279 | 15% | No | Yes | |||||||||||||||
Mortgage loans |
41,021 | 41,021 | 100% | Yes | No | |||||||||||||||
Private loans |
2,059 | 4,514 | 46% | No | Yes | |||||||||||||||
Policy loans |
0 | 2,043 | 0% | No | Yes | |||||||||||||||
Real estate |
2,604 | 2,604 | 100% | Yes | No | |||||||||||||||
Other 1 |
55 | 6,331 | 1% | No | Yes | |||||||||||||||
Total eligible general account investments (numerator) |
53,814 |
109,284 |
49% |
|||||||||||||||||
Investments for account of policyholders in scope: |
||||||||||||||||||||
Shares |
1,661 | 11,751 | 14% | No | Yes | |||||||||||||||
Debt securities |
698 | 4,965 | 14% | No | Yes | |||||||||||||||
Unconsolidated |
90 | 171,717 | 0% | No | Yes | |||||||||||||||
investment funds |
||||||||||||||||||||
Real estate |
443 | 443 | 100% | Yes | No | |||||||||||||||
Other 1 |
2 | 6,088 | 0% | No | Yes | |||||||||||||||
Total eligible investments for account of policyholders (numerator) |
2,895 |
194,964 |
1% |
|||||||||||||||||
Total eligible real estate assets for own use (numerator) |
149 |
149 |
100% |
Yes |
No |
1 |
Mainly includes deposits with financial institutions and money market funds which do not qualify for eligibility. |
416 | Aegon Annual Report on Form 20-F 2022 |
Regulation and compliance | ||||
1. | Comply with a minimum quota of one-third women and one-third men on the Supervisory Board of Aegon N.V. The Act determines that the 30% gender balance is to be heeded for future appointments. The diversity quota applies to an initial appointment of a Supervisory Board member, but not to a reappointment if it occurs within eight years of the year of appointment. There is no obligation to make changes to the existing Board positions at this time. |
2. | Set appropriate and ambitious targets for all Dutch subsidiaries that qualify as “large” 1 in the form of a target to promote gender diversity. These include gender diversity in (i) the Board of Directors, (ii) the Supervisory Boards, and (iii) the “sub-board” of these entities. |
3. | Draw up a plan of action to achieve these objectives. In the plan of action, the company shall in any event explain the policy and measures by which a more balanced distribution will be achieved. |
4. | Report in the Annual Report of Aegon N.V. (for the first time in the Annual Report 2022): |
∎ |
Number of female and male in positions on the Board of Directors, the Supervisory Board and at the sub-board level |
∎ |
Ambitious targets and the plans to realize these |
∎ |
If a target has not been met, the reason why. |
5. | Report to the Dutch Social and Economic Council (“Sociaal-Economische Raad” (SER)) annually, within 10 months after the close of the financial year, on the same matters as listed under item 4. |
∎ |
The ambition for the Executive Board of Aegon N.V. is a minimum of 33% of each gender by 2026 in the event the Executive Board is composed of three or more members. |
∎ |
The Executive Board of Aegon N.V. is part of the larger Management Board. For the Management Board an ambition of 33% in 2026 applies irrespective of whether members are also members of the Executive Board. |
∎ |
The target for the Supervisory Board (if existing) for each subsidiary is a minimum of 33% of each gender. |
∎ |
The target for the Board of Directors for each subsidiary is a minimum of 33% of each gender. |
∎ |
The target for the composition of staff at sub-board level for all entities in scope of the Act is a minimum of 33% of each gender. |
1. | Conclude the “Glass ceiling” research with clear actions to address identified barriers: |
∎ |
Include non-financial performance indicators for gender diversity in senior management remuneration. |
∎ |
Actively manage staffing developments that create opportunities to further strengthen the gender ratio in senior management. |
∎ |
Target 50% female succession candidates for senior management functions by end of 2023. |
∎ |
Actively monitor gender diversity in promotions. |
∎ |
Continue to support “Women in Finance” employee resource group in the Netherlands. |
2. | Less directly, but also impactful, is strengthening inclusion and diversity practices throughout the organization: |
∎ |
Appoint a Global Head of Inclusion and Diversity and create a company-wide inclusion and diversity strategy. |
∎ |
Appoint Management Board members as executive sponsors of our inclusion and diversity focus areas (gender balance, disability, life stages, sexual orientation and race and ethnicity), making our intentions clear to our colleagues, the marketplace and the communities we serve. |
∎ |
Conduct a maturity assessment and inclusion survey on our diversity journey so we have baseline data to track our progress and help us define impactful interventions. |
∎ |
Embed inclusive leadership behavior as part of our Best Life Leadership Program to promote and harness diversity of thought and create a more inclusive workplace. |
∎ |
Enhance our Speak Up culture to allow people to safely voice concerns and issues. |
1 |
This is the case if a company meets at least two of the following criteria on two consecutive balance sheet dates: |
∎ |
the value of the assets exceeds EUR 20 million; |
∎ |
the net turnover is more than EUR 40 million; |
∎ |
the average number of employees is 250 or more |
Aegon Annual Report on Form 20-F 2022 | 417 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
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|||||||||||||||||||||||||||||||
Board of Directors |
||||||||||||||||||||||||||||||||||||||||
Female |
0 |
1 |
1 |
1 |
1 |
1 |
0 |
0 |
1 |
1 |
||||||||||||||||||||||||||||||
Male |
2 |
2 |
2 |
2 |
2 |
1 |
2 |
3 |
3 |
2 |
||||||||||||||||||||||||||||||
Total female and male |
2 |
3 |
3 |
3 |
3 |
2 |
2 |
3 |
4 |
3 |
||||||||||||||||||||||||||||||
% female (actual) |
0% |
33% |
33% |
33% |
33% |
50% |
0% |
0% |
25% |
33% |
||||||||||||||||||||||||||||||
Supervisory Board |
||||||||||||||||||||||||||||||||||||||||
Female |
4 |
2 |
2 |
2 |
2 |
1 |
0 |
2 |
2 |
0 |
||||||||||||||||||||||||||||||
Male |
5 |
2 |
2 |
2 |
2 |
2 |
0 |
1 |
1 |
0 |
||||||||||||||||||||||||||||||
Total female and male |
9 |
4 |
4 |
4 |
4 |
3 |
0 |
3 |
3 |
0 |
||||||||||||||||||||||||||||||
% female (actual) |
44% |
50% |
50% |
50% |
50% |
33% |
0% |
67% |
67% |
0% |
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Sub-Board Level (Senior management)1 |
||||||||||||||||||||||||||||||||||||||||
Female |
49 |
9 |
n.a. |
n.a. |
n.a. |
1 |
n.a. |
3 |
2 |
21 |
||||||||||||||||||||||||||||||
Male |
124 |
24 |
n.a. |
n.a. |
n.a. |
3 |
n.a. |
12 |
2 |
42 |
||||||||||||||||||||||||||||||
Total female and male |
173 |
33 |
n.a. |
n.a. |
n.a. |
4 |
n.a. |
15 |
4 |
63 |
||||||||||||||||||||||||||||||
% female (actual) |
28% |
27% |
n.a. |
n.a. |
n.a. |
25% |
n.a. |
20% |
50% |
33% |
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Total |
||||||||||||||||||||||||||||||||||||||||
Female |
53 |
12 |
3 |
3 |
3 |
3 |
0 |
5 |
5 |
22 |
||||||||||||||||||||||||||||||
Male |
131 |
28 |
4 |
4 |
4 |
6 |
2 |
16 |
6 |
44 |
||||||||||||||||||||||||||||||
Total female and male |
184 |
40 |
7 |
7 |
7 |
9 |
2 |
21 |
11 |
66 |
||||||||||||||||||||||||||||||
% female (actual) |
29% |
30% |
43% |
43% |
43% |
33% |
0% |
24% |
45% |
33% |
1 |
We have defined sub-board level to be the senior management of the Dutch entities that are not already a member of the Supervisory Board or Executive Board of any of the entities in scope of the Act. For Aegon Investment Management B.V. we define sub-board level as the senior management of Aegon Asset Management. For Aegon Bank N.V., we define sub-board level as the senior management of KNAB. The definition of senior management is the same as our existing definition used for remuneration and reporting purposes. Aegon Levensverzekeringen N.V., Aegon Spaarkas N.V., Aegon Schadeverzekering N.V. and Aegon Hypotheken B.V. are legal entities. The operational activities fall under Aegon Nederland N.V. and therefore sub-board level is not applicable. |
418 | Aegon Annual Report on Form 20-F 2022 |
Our commitments | ||||
UNGC Principles |
Policy and implementation |
Resources / References | ||
Human Rights |
||||
1. Businesses should support and respect the protection of internationally proclaimed human rights; and |
∎ |
∎ Our Statement on Human Rights | ||
∎ |
∎ Code of Conduct ∎ Statement on Inclusion and Diversity | |||
∎ |
∎ Responsible Investment Policy | |||
∎ |
∎ Vendor Code of Conduct | |||
∎ |
∎ human rights | |||
∎ |
∎ government and policy affairs | |||
∎ |
∎ community investments ∎ Inclusive insurance coverage |
Aegon Annual Report on Form 20-F 2022 | 419 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
UNGC Principles |
Policy and implementation |
Resources / References | ||
2. make sure that they are not complicit in human rights abuses. |
∎ We carry out a biennial Human Rights Risk Assessment to identify, prevent, and mitigate adverse human rights impacts that may be linked to our operations. |
∎ Our approach to human rights | ||
∎ Human rights risks are integrated in our Enterprise Risk Management (ERM) framework and subsequently in various internal control systems, particularly Aegon’s biennial Human Rights Risk Assessment. |
∎ Our Statement on Human Rights | |||
∎ Our Responsible Investments’ exclusion list aims to prevent investments in companies and countries that we believe systematically breach human rights. |
∎ Our Responsible Investment Policy | |||
Labor |
||||
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; |
∎ We incorporated both the Universal Declaration of Human Rights and the core labor and human rights standards of the International Labor Organization (ILO), including the recognition of the right to freedom of association and the right to collective bargaining into our employee policies, as well as Vendor Code of Conduct and Responsible Investment Policy. |
∎ Our Statement on Human Rights ∎ Our Vendor Code of Conduct ∎ Our Responsible Investment Policy | ||
∎ In countries with the highest human rights risks, we suggest alternative employee representation where there is no independent trade union. |
∎ Our approach to human rights | |||
∎ We include labor rights considerations in our Responsible Investment Policy, including those related to freedom of association, effective recognition of the right to collective bargaining, the elimination of all forms of discrimination with respect to employment, the elimination of all forms of forced labor, and the effective abolition of child labor. |
∎ Our Responsible Investment Policy | |||
4. the elimination of all forms of forced and compulsory labor; |
∎ We incorporated both the Universal Declaration of Human Rights and the core labor and human rights standards of the International Labor Organization (ILO) into our employee policies. We consider certain human rights fundamental and universal for our workforce. |
∎ Our Statement on Human Rights ∎ Our Code of Conduct ∎ Our Statement on Inclusion and Diversity | ||
∎ Our responsible procurement practices assess the risks associated with our supply chain, our business and distribution partners, our outsourced arrangements, and our interactions with governmental agencies. |
∎ Our approach to responsible procurement ∎ Our Vendor Code of Conduct ∎ Our Statement on Human Rights | |||
5. the effective abolition of child labour; and |
∎ We incorporated the core labor and human rights standards of the International Labor Organization (ILO) into our employee policies. We also engage with our portfolio companies on issues related to human rights, including those related to forced and compulsory labor and abolition of child labor. |
∎ Our Statement on Human Rights ∎ Our Responsible Investment Policy | ||
∎ In line with our Vendor Code of Conduct, we score our suppliers for sustainability performance through the EcoVadis rating platform, which also covers the topic of effective abolition of child labor. |
∎ Our Vendor Code of Conduct ∎ Our Statement on Human Rights ∎ Our approach to responsible procurement | |||
CONTINUED > |
420 | Aegon Annual Report on Form 20-F 2022 |
Our commitments |
UNGC Principles |
Policy and implementation |
Resources / References | ||
6. the elimination of discrimination in respect of employment and occupation. |
∎ We incorporated the core labor and human rights standards of the International Labor Organization (ILO) into our employee policies. This includes embedding inclusion and diversity in Aegon’s Inclusion and Diversity Statement, in our ERM framework, and in Aegon’s Global Employee Survey to enable more targeted interventions and track our progress. |
∎ Our approach to inclusion and diversity ∎ Our Statement on Inclusion and Diversity ∎ Our Statement on Human Rights | ||
∎ Aegon’s Speak Up case-by-case |
∎ Our approach to human rights ∎ Aegon’s Speak Up | |||
∎ Our recommended preventative or remedial measures for local management in the countries with the highest risk include enforcing a zero-tolerance approach to corruption and discrimination in the workplace. |
∎ Our approach to human rights | |||
Environment |
||||
7. Businesses should support a precautionary approach to environmental challenges; |
∎ Through our Responsible Investment policy, we expect and encourage investee companies to work toward reducing their environmental impact. |
∎ Our Responsible Investment Policy | ||
∎ We have signed up to several international commitments (Net-Zero Asset Owner Alliance, CDP, Paris Pledge for Action) that guide our internal practices and policies, and help shape our overall approach to sustainability. We are a founding member of the United Nations Environment Program Finance Initiative’s Principles for Sustainable Insurance. |
∎ Our sustainability commitments ∎ Our approach to climate change ∎ Our disclosures against the Principles for Sustainable Insurance | |||
∎ In line with our Vendor Code of Conduct, we score our suppliers for sustainability performance through the EcoVadis rating platform, which also covers environmental topics. |
∎ Our Vendor Code of Conduct ∎ Our approach to responsible procurement | |||
8. Businesses undertake initiatives to promote greater environmental responsibility. |
∎ In line with our Responsible Investment Policy, through our investments, we encourage the development and diffusion of technologies that offer solutions to environmental issues, including those which reduce GHG emissions. |
∎ Our Responsible Investment Policy | ||
∎ We score our suppliers for their environmental performance through the EcoVadis rating platform. |
∎ Our approach to responsible procurement | |||
9. Businesses encourage the development and diffusion of environmentally friendly technologies. |
∎ In line with our Responsible Investment Policy, through our (impact) investments, we encourage the development and diffusion of technologies that offer solutions to environmental issues, including those which reduce GHG emissions. |
∎ Our Responsible Investment Policy | ||
Anti-corruption |
||||
10. Businesses should work against corruption in all its forms, including extortion and bribery. |
∎ Our internal policies and Code of Conduct sets out rules, guidelines, and education programs that shape and govern the actions of all our employees. We report outcomes in our Annual Report. |
∎ Our Code of Conduct ∎ Our Annual Reports | ||
∎ In line with our Vendor Code of Conduct, we score our suppliers for sustainability performance through the EcoVadis rating platform, which also covers the topic of anti-corruption. |
∎ Our approach to responsible procurement ∎ Our Vendor Code of Conduct | |||
∎ Our Responsible Investment Policy expects the companies in which we invest to adhere to high ethical standards and operate free from corruption. |
∎ Our Responsible Investment Policy |
Aegon Annual Report on Form 20-F 2022 | 421 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
Sustainable Development Goal |
Aegon’s contribution to relevant SDG targets in 2022 (References from AR2022) |
Resources/ References | ||||
![]() 5. Gender equality Achieve gender equality and empower all women and girls |
5.1 |
End all forms of discrimination against all women and girls everywhere. |
||||
∎ The theme of “Gender development” is explicitly implemented in Aegon’s biennial Human Rights Risk Assessment process. Consideration for gender equality is incorporated into numerous Aegon policies including the Code of Conduct and Aegon N.V. Responsible Investment Policy as a fundamental element of human rights. |
page 409 | |||||
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. |
|||||
∎ In 2022, Aegon appointed a Global Head of Inclusion and Diversity. A specific area of attention is maintaining a healthy gender balance at the senior management level across Aegon’s business units. In the Netherlands specifically, Aegon is actively taking steps to increase female leadership participation, in line with the “Diversity at the top” Act, which took effect in January 2022. |
page 15 | |||||
5.c |
Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels. |
|||||
∎ In the UK, Aegon Asset Management (Aegon AM) is working with AAI EmployAbility which supports businesses to access graduate and returner talent of all ages, skillsets and backgrounds. Aegon AM is an active participant in the Diversity Works program which specifically works to bring female talent from black, Asian and minority ethnicities into the workforce. |
Aegon AM’s website on inclusion and diversity | |||||
![]() 7. Affordable and clean energy Ensure access to affordable, reliable, sustainable and modern energy for all |
7.3 |
By 2030, ensure universal access to affordable, reliable and modern energy services. |
||||
∎ Aegon Hypotheken, Aegon’s mortgage business in the Netherlands, is taking steps toward an energy-neutral mortgage portfolio, through which it will only finance zero-on-the-meter |
page 14 | |||||
∎ Cedar Rapids was named the home of Alliant Energy’s first community solar garden in Iowa. Transamerica and Aegon AM have committed in 2022 to purchase 60% of the garden’s solar blocks and become the anchor tenant for the project. |
page 28 | |||||
![]() 10. Reduced inequalities Reduce inequality within and among countries |
10.2 |
By 2030, 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. |
||||
∎ Wider progress on inclusion and diversity topics is monitored through Aegon’s Global Employee Survey. The third quarter edition of the survey showed positive increases for two key metrics: 78% of employees responded favorably to a set of questions on openness and inclusion, compared with 74% in the third quarter of 2021, while 76% answered favorably on the topic of diversity and equity, up from 72%. |
page 15 | |||||
∎ For the fourth time, in 2022, Transamerica has been named to Seramount’s “100 Best Companies” list and the “Inclusion Index.” |
Seramount’s 100 Best Companies list | |||||
∎ Aegon AM has signed up to a collaboration with Black Professionals Scotland, who empowers Scotland-based black ethnic minority professionals and supports organizations in meeting their inclusion and diversity agenda. |
Aegon AM’s website on inclusion and diversity | |||||
CONTINUED > |
422 | Aegon Annual Report on Form 20-F 2022 |
Our commitments | ||||
Sustainable Development Goal |
Aegon’s contribution to relevant SDG targets in 2022 (References from AR2022) |
Resources/ References | ||||
![]() 10. Reduced inequalities Reduce inequality within and among countries |
10.3 |
Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard. As part of Aegon’s transformation journey, we adopted a company-wide strategy on inclusion and diversity in 2022; and our business units have signed up to our vision. Two fundamental elements of Aegon’s new inclusion and diversity strategy are: |
page 15 | |||
∎ 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. |
||||||
∎ Starting at the top: the members of Aegon’s senior leadership are expected to act as role models for inclusion and diversity, including by sharing their own inclusion stories and championing a specific area of diversity excellence among employees. |
||||||
![]() 13. Climate action Take urgent action to combat climate change and its impacts |
13.2 |
Integrate climate change measures into national policies, strategies and planning. |
||||
∎ In addition to our company-wide commitment to transitioning our general account investment portfolio to net-zero greenhouse gas (GHG) emissions by 2050, we committed to: |
||||||
∎ Investing USD 2.5 billion in activities to help mitigate climate change or to adapt to the associated impacts of climate change, by 2025. |
page 13 | |||||
∎ Engage with at least the top 20 corporate carbon emitters in the portfolio by 2025. |
page 13 | |||||
∎ In 2022, Aegon worked with Ortec Finance for a second consecutive year to conduct an extensive and systematic climate risk assessment for its general and separate account assets across all business units. The analysis investigated three plausible climate pathways (orderly, disorderly, and failed transitions) to explore potential future climate policies, interventions, and consequences of society’s failure to mitigate climate change. |
page 14 | |||||
∎ We strive to work with partners who share our values and can demonstrate accountability in terms of their environmental stewardship and climate mitigation. In 2022, 50% of Aegon’s top 25 suppliers participated voluntarily in EcoVadis, a business sustainability ratings provider. |
page 14 | |||||
∎ In 2022, the weighted average carbon intensity (WACI) of our own investment portfolio’s corporate income and listed equity assets reduced by 20% compared to our 2019 baseline. |
page 13 | |||||
∎ In 2022, the carbon footprint of our operational activities decreased by 59% compared to our 2019 baseline. |
page 13 | |||||
∎ Aegon evolved its Short Dated Investment Grade Bond Fund to focus on the transition to a net-zero global economy. The fund was renamed as the Aegon Global Short Dated Climate Transition Fund and is classified under Article 8 of the European Union’s Sustainable Finance Disclosure Regulation. |
page 16 |
Aegon Annual Report on Form 20-F 2022 | 423 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
Principles |
Our goals |
Our progress (as of 2022) | ||
1. We will embed in our decision-making environmental, social and governance (ESG) issues relevant to the insurance business. |
Streamline the company-wide sustainability governance. |
∎ In 2021, we established our Global Sustainability Board (GSB) to enhance governance and oversight of our sustainability approach. The GSB consists of relevant Management Board members, Local Sustainability Board Chairs, and senior management. Since its establishment, the GSB enabled to: identify priority sustainability themes; join the Net-Zero Asset Owner Alliance; establish internal working groups crucial to the operationalization of our sustainability strategic approaches such as the Net-Zero Working Group or the Active Management Working Group; and initiate the process to enhance our sustainability reporting. | ||
∎ As per our Executive Board’s Remuneration Policy, at least 50% of a member’s variable compensation must be determined by non-financial performance indicators, where at least one must be ESG-related. | ||||
Integrate ESG issues into key stakeholder discussions, decision-making, risk management, underwriting, and capital adequacy decision-making processes. |
∎ In 2021, we initiated dialogues with key stakeholders and investors which highlighted climate change, and inclusion and diversity as key priority themes. ∎ We performed our first double materiality assessment in 2022 and identified material topics which are linked to our policies and procedures, internal metrics, and KPIs. We will further enhance this process in the coming years in line with the new European Sustainability Reporting Standards (ESRS). ∎ We became a UN PRI signatory in November 2022. ∎ We signed up for the UN Global Compact and committed to the 10 Principles in November 2021. ∎ ESG risks are covered by Aegon’s risk universe and the risk function regularly reports on ESG risks. | |||
Develop products and services which reduce risk, have a positive impact on ESG issues, and encourage better risk management. |
∎ Aegon UK offers Workplace Default Funds to transition funds to more sustainable alternatives. ∎ Transamerica offers Workplace ESG propositions in 401(k) and 403(b) plans. ∎ Aegon NL offers sustainable mortgage solutions (customers are able to finance 106% of the value of a home, allowing for 6% to be used toward sustainable improvements). ∎ Aegon Asset Management (Aegon AM) manages the Global sustainable equity fund, its flagship sustainability-themed product. It also manages the Euro ABS fund (“best-in-class” | |||
Establish processes to identify and assess ESG issues inherent in the portfolio and be aware of potential ESG-related consequences of the company’s transactions. |
∎ In January 2022, we updated our Responsible Investment Policy, to integrate some of the latest climate science. ∎ Our business units provide a range of responsible investment solutions to pursue ESG objectives alongside financial returns. ∎ We worked with Ortec Finance in 2021 and 2022 to perform an extensive, and systematic climate risk assessment for the general and separate account assets of all business units within Aegon. |
CONTINUED > |
424 | Aegon Annual Report on Form 20-F 2022 |
Our commitments | ||||
Principles |
Our goals |
Our progress (as of 2022) | ||
2. We will work together with our clients and business partners to raise awareness of ESG issues, manage risk and develop solutions. |
Establish the company’s expectations and requirements on ESG issues. |
∎ Aegon’s Responsible Investment Policy recognizes a broad range of recurring sustainability and ESG topics, varying from climate change to corporate governance. ∎ We became a UN PRI signatory in November 2022. ∎ Since 2020 we have worked with sustainability rating company EcoVadis to evaluate the ESG risks involved in our partnerships with our top 250 vendors (representing over 80% of Aegon’s total procurement spend). | ||
Integrate ESG issues into tender, and selection processes for suppliers. |
∎ We integrate all applicable laws, regulations, and ethical business practices into our selection process for vendors and apply a risk-based approach to assess performance and compliance with these minimum standards and preferred behaviors. ∎ In 2022, Aegon undertook the tendering process for the mandatory rotation of its auditor. The tender’s selection criteria emphasized the composition of the proposed supplier teams, supporting our ambition to help increase the diversity of our supply chains. | |||
Support the inclusion of ESG issues in professional education, and ethical standards in the insurance industry. |
∎ We participated in a UNEP-FI endorsed industry-wide paper: Insuring A Low-Carbon Future: A practical guide for insurers on managing climate-related risks and opportunities | |||
Advocate for issues and initiatives that benefit our customers, employees, wider society, and our businesses. |
∎ Our Global Government & Public Affairs department aims to support regulators and lawmakers. We advocate for people worldwide to have access to insurance and financial services, for people to be aware of opportunities for flexible employment in old age, and for governments to plan and provide for their citizens in an age of increasing longevity. ∎ The new Dutch pension system will allow pensions to adapt more directly to economic developments, allowing for greater pension purchasing power, and in the United States, the SECURE 2.0 Act of 2022 will make saving for retirement easier and more effective for both employers and their employees. Aegon has long been a strong supporter of both legislative initiatives. | |||
3. We will work together with governments, regulators and other key stakeholders to promote widespread action across society on ESG issues. |
Support prudential policy and regulatory and legal frameworks that enable risk reduction, innovation, and better management of ESG issues. |
∎ We participate in many international projects that aim to fulfill this goal; for example, an Organisation for Economic Cooperation 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). | ||
Engage in dialogue and participate in research initiatives (incl. academia and scientific community) with business, and industry associations to better understand and manage ESG issues across industries and geographies. |
∎ Our Silver Starters program (developed jointly with the Leyden Academy on Vitality and Ageing) provides online entrepreneurship coaching to those over 50 years old, to promote lifelong learning, and healthy attitudes to aging. | |||
Engage in dialogues with governments and regulators to develop integrated risk management approaches, and risk transfer solutions. |
∎ We became a founding member of the Global Coalition on Aging in 2010. The coalition seeks to raise awareness of aging issues among policymakers and the general public. | |||
Encourage media incentives and publish resources available to media to promote public awareness of ESG issues and sound risk management. |
∎ We regularly publish research on financial planning, retirement, health, and insurance issues so that society can effectively plan for a longer and more active retirement. | |||
4. We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles. |
Assess, measure, and monitor our progress in managing ESG issues, and proactively, and regularly disclose this information publicly. |
∎ We monitor our progress towards our main sustainability topics: climate change and inclusion and diversity through a set of metrics, and KPIs disclosed in our annual reports. • Each year, we publicly publish progress against the PSI principles. | ||
Participate in relevant disclosure or reporting frameworks, and are open to dialog with clients, regulators, rating agencies, and other stakeholders to gain a mutual understanding of the value of disclosure through the Principles. |
∎ We apply the Integrated Reporting Framework. ∎ We publish our Communication on Progress (COP) report for the UN Global Compact (UNGC) on a yearly basis. ∎ We became a signatory of the Principle for Responsible Investment (PRI) in 2022. ∎ We have started to evaluate and implement the draft ESRS standards in 2022. ∎ We engage sustainability benchmarks, regulators, investors, and other stakeholders on a regular basis. We publish our progress toward ratings publicly. ∎ Our Annual Report includes a dedicated section on Task Force on Climate-related Financial Disclosures (TCFD), which follows its four-pillar framework to facilitate disclosure. |
Aegon Annual Report on Form 20-F 2022 | 425 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
426 | Aegon Annual Report on Form 20-F 2022 |
Task Force on Climate-related Financial Disclosures | ||||
Aegon Annual Report on Form 20-F 2022 | 427 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
Overview of climate scenarios considered |
||||||||
Orderly |
Disorderly |
Failed Transition | ||||||
Orderly |
Disorderly |
Business-as-usual | ||||||
Net-Zero by 2050 |
Net-Zero by 2050 |
committed transition efforts) | ||||||
Smooth market pricing-in dynamics |
Disruptive effects on financial markets | Fails to meet | ||||||
with sudden repricing | the Paris Agreement goals | |||||||
CO 2 emissions ~ SSP1-RCP1.9 |
CO 2 emissions ~ SSP1-RCP1.9 |
CO 2 emissions ~ SSP3-RCP7.0 | ||||||
Locked-in physical impacts of |
Locked-in physical impacts of |
Dramatic physical impacts of | ||||||
1.5 ° C |
1.5 ° C |
4.3 ° C |
428 | Aegon Annual Report on Form 20-F 2022 |
Task Force on Climate-related Financial Disclosures | ||||
Case Study: Aegon Global Short Dated Climate Transition Fund The Aegon Global Short Dated Climate Transition Fund is a simple, liquid, and transparent short-dated investment grade bond strategy. The fund marries both financial and climate related considerations with the aim to deliver a cash return of at least 1.25% gross of fees over rolling three-year periods and to deliver that with at least 30% lower carbon intensity than the broader credit market. It embeds dedicated and proprietary climate transition research to direct investments to companies that have robust and credible plans to transition towards a low carbon economy and therefore are better aligned with investors’ net-zero goals. More broadly, it adopts a best-in-class |
Aegon Annual Report on Form 20-F 2022 | 429 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
430 | Aegon Annual Report on Form 20-F 2022 |
Task Force on Climate-related Financial Disclosures | ||||
2019 |
2022 |
Change | ||||||||||
Weighted average carbon intensity |
tCO 2 e/EURm revenue |
490 | 390 | (20%) |
* | Source: Aegon calculation. Values as of 31 December 2022. Climate metrics calculated per Methodology section below. Climate change data availability may change over time and characteristics will vary. Certain information © 2023 Sustainalytics, MSCI ESG Research L.L.C. Reproduced with permission. Not for further distribution. |
Corporate FI |
Coverage | |||||||
Absolute footprint |
tCO 2 e |
2,640,000 | 89% | |||||
Relative intensity |
tCO 2 e/EURm invested |
84 | 89% | |||||
Weighted average carbon intensity |
tCO 2 e/EURm revenue |
390 | 96% | |||||
Carbon Risk Rating |
Sustainalytics rating | 10.5 | 85% |
* | Source: Aegon calculation. Values as of December 31, 2022. Climate metrics calculated per Methodology section below. Relative intensity, Weighted average carbon intensity, and Carbon risk rating figures are extrapolated when underlying carbon data is not available. The availability of data for each indicator is expressed in a coverage ratio as disclosed above. Climate change data availability may change over time and characteristics will vary. Certain information © 2023 Sustainalytics, MSCI ESG Research L.L.C. Reproduced with permission. Not for further distribution. |
Aegon Annual Report on Form 20-F 2022 | 431 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
Sovereign FI |
Coverage | |||||||||||
Absolute footprint |
tCO 2 e |
7,528,000 | 100% | |||||||||
Relative intensity |
tCO 2 e/EURm invested |
510 | 100% | |||||||||
Weighted average carbon intensity |
tCO 2 e/EURm GDP |
310 | 100% | |||||||||
Climate change resiliency |
ND GAIN rating |
66 | 100% |
* | Source: Aegon calculation. Values as of 31 December 2022. Climate metrics calculated per Methodology section below. Climate change data availability may change over time and characteristics will vary. |
432 | Aegon Annual Report on Form 20-F 2022 |
Task Force on Climate-related Financial Disclosures | ||||
Aegon Annual Report on Form 20-F 2022 | 433 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Change |
||||||||||||||||
Material Topic |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||
Number of customers (in millions) |
||||||||||||||||
Total customers 1 |
29.5 | 31.7 | (7%) |
30.4 | ||||||||||||
Americas |
10.8 | 11.8 | (8%) |
11.4 | ||||||||||||
Customer experience |
The Netherlands |
2.7 | 2.7 | 1% |
2.5 | |||||||||||
United Kingdom |
4.1 | 3.9 | 5% |
3.8 | ||||||||||||
International |
11.9 | 13.4 | (11%) |
12.6 | ||||||||||||
New customers 2 |
3.8 | 3.8 | (1%) |
4.6 | ||||||||||||
Customer satisfaction |
||||||||||||||||
Benchmarked Net Promoter |
||||||||||||||||
Score (NPS) 3 |
||||||||||||||||
United States |
= Market Average | = Market Average | ¬ ® |
n.m. | ||||||||||||
The Netherlands |
< Market Average | < Market Average | ¬ ® |
n.m. | ||||||||||||
Customer experience |
United Kingdom |
< Market Average | > Market Average | ¯ |
n.m. | |||||||||||
Customer complaints 4 |
79,892 | 86,075 | (7%) |
80,510 | ||||||||||||
Significant fines to address cases of mis-selling (in EUR millions)5 |
0.0 | 0.0 | - |
8.2 | ||||||||||||
Claims, benefits and retirement plan withdrawals (in EUR billions) |
60.0 | 61.9 | (3.1%) |
57.4 |
1 |
Customers are those with individual, group or corporate policies. We also include those participating in pension plans controlled by trustees or who have white label products serviced by Aegon or Transamerica. There may be some duplications in markets where we operate under more than one brand. Customers of our joint ventures are included on a 100% basis. The customers of our joint venture in Brazil are reported in the category International. In previous years this was reported under Americas. The 2020 and 2021 numbers were restated to reflect this change. The decrease in the number of customers for the Americas from 2021 to 2022 mainly relates to customers with no balance value. In 2022, these customers are excluded from the total number, while for previous years they were included and not restated. |
2 |
New customers are those who acquired a product or service during the reporting period (and who were not previously customers of Aegon). There may be some duplications in markets where we operate under more than one brand. Customers of our joint ventures are included on a 100% basis. |
3 |
Customer satisfaction is measured in benchmarked Net Promoter Score (SM) (NPS® ). On an annual basis, we measure the NPS in our core markets (the Netherlands, the United Kingdom, and the United States) and compare findings against peers in each local market. The peer groups are re-assessed each year to ensure a fair representation of the market. Our target is to ensure that customer satisfaction in each of our core markets remains at or above the average of our peers. See “Non-financial key performance indicators” on pages 405-406 for more details. |
4 |
Includes all written and verbal complaints from our customers. |
5 |
Includes any fines for mis-selling in excess of EUR 100,000. |
434 | Aegon Annual Report on Form 20-F 2022 |
Value created | ||||
Change |
||||||||||||||||||
Material Topic |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||||
Workforce |
||||||||||||||||||
Number of employees 1 |
19,087 | 22,271 | (14%) |
22,322 | ||||||||||||||
Americas |
6,153 | 7,675 | (20%) |
7,960 | ||||||||||||||
The Netherlands |
3,609 | 3,855 | (6%) |
3,930 | ||||||||||||||
United Kingdom |
2,621 | 2,476 | 6% |
2,307 | ||||||||||||||
Talent management |
International |
4,281 | 6,590 | (35%) |
6,598 | |||||||||||||
Asset Management |
1,464 | 1,675 | (13%) |
1,527 | ||||||||||||||
Holding and other activities |
958 | n.m. | n.m. |
n.m. | ||||||||||||||
Number of direct employees 2 |
14,747 | 15,837 | (7%) |
17,989 | ||||||||||||||
Recruitment and retention |
||||||||||||||||||
Number of new hires |
2,547 | 1,884 | 35% |
2,217 | ||||||||||||||
Number of leavers 3 |
2,491 | 2,039 | 22% |
2,831 | ||||||||||||||
Proportion voluntary leavers |
86% | 86% | 0pp |
69% | ||||||||||||||
Talent management |
Proportion involuntary leavers 3 |
14% | 14% | (0pp) |
31% | |||||||||||||
Turnover rate |
18% | 15% | 3pp |
15% | ||||||||||||||
Voluntary |
16% | 13% | 3pp |
10% | ||||||||||||||
Involuntary 3 |
3% | 2% | 1pp |
5% | ||||||||||||||
Employee engagement |
||||||||||||||||||
Global Employee Survey 4 |
||||||||||||||||||
Engagement |
70 | 68 | 3% |
72 | ||||||||||||||
Leadership |
61 | 57 | 7% |
63 | ||||||||||||||
Talent management |
Inclusion |
78 | 74 | 5% |
79 | |||||||||||||
Diversity |
76 | 72 | 6% |
73 | ||||||||||||||
Participation rate |
79% | 77% | 2pp |
82% | ||||||||||||||
Training and development |
||||||||||||||||||
Investment in training and career development (in EUR millions) |
10.9 | 9.5 | 14% |
10.8 | ||||||||||||||
Average investment in training and career development per employee (EUR) |
736 | 602 | 22% |
486 | ||||||||||||||
CONTINUED > |
Aegon Annual Report on Form 20-F 2022 | 435 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Change |
||||||||||||||||||
Material Topic |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||||
Inclusion and diversity |
||||||||||||||||||
Global Employee Survey 4 |
||||||||||||||||||
Inclusion |
78 | 74 | 5% |
79 | ||||||||||||||
Diversity |
76 | 72 | 6% |
73 | ||||||||||||||
Gender |
||||||||||||||||||
Number of employees (women) |
6,426 | 6,322 | 2% |
n.m. | ||||||||||||||
Proportion of women employees |
48% | 47% | 1pp |
50% | ||||||||||||||
Number of women in senior management |
177 | 169 | 5% |
n.m. | ||||||||||||||
Proportion of women in senior management 5 |
36% | 34% | 2pp |
32% | ||||||||||||||
Number of women in Supervisory Board |
4 | 3 | 33% |
n.m. | ||||||||||||||
Proportion of women in Supervisory Board |
44% | 38% | 7pp |
38% | ||||||||||||||
Inclusion and diversity |
Number of women in Executive Board |
0 | 0 | - |
n.m. | |||||||||||||
Proportion of women in Executive Board |
0% | 0% | 0pp |
0% | ||||||||||||||
Number of women in Management Board |
4 | 2 | 100% |
n.m. | ||||||||||||||
Proportion of women in Management Board 6 |
33% | 20% | 13pp |
17% | ||||||||||||||
Work-related incidents and complaints |
||||||||||||||||||
Number of work-related incidents and/or complaints (reported) |
84 | n.m. | n.m. |
n.m. | ||||||||||||||
Of which incidents of discrimination |
12 | n.m. | n.m. |
n.m. | ||||||||||||||
Number of work-related incidents resulting in material fines, penalties, and compensation |
0 | n.m. | n.m. |
n.m. | ||||||||||||||
Health and safety |
||||||||||||||||||
Good health and wellbeing |
Number of days lost to employee absence 7 |
88,688 | 96,479 | (8.1%) |
93,464 | |||||||||||||
Employee absence rate |
2.3% | 1.7% | 0.7pp |
1.7% | ||||||||||||||
CONTINUED > |
436 | Aegon Annual Report on Form 20-F 2022 |
Value created | ||||
Change |
||||||||||||||||
Other information |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||
Total employment costs (in EUR billions) |
2.1 | 1.9 | 10.2% |
2.0 | ||||||||||||
Salary costs (in EUR billions) |
1.3 | 1.3 | 4.2% |
1.3 | ||||||||||||
Fair compensation and benefits |
Ratio of CEO compensation to average compensation 8 |
23:1 | 28:1 | i |
32:1 | |||||||||||
Policy compliance (Global Remuneration Framework) 9 |
95% | 95% | 0pp |
95% | ||||||||||||
Collective bargaining |
Proportion of employees covered by collective bargaining / labor agreements 10 |
17.8% | 17.3% | 0.5pp |
17.6% |
1 |
Number of employees on the last day of the reporting period, including all direct employees in Aegon, tied agents and employees in Aegon’s subsidiaries and joint ventures. In 2022 we added Holdings and other activities as a separate category. In previous years the employees under this category were recorded under The Netherlands and Americas. |
2 |
The definition of “Direct employees” has changed in 2022 compared to previous years. Based on the new definition, direct employees include employees from Aegon N.V. and its 100% subsidiaries only, and is therefore limited to entities over which Aegon has direct control. In previous years, the employees of joint ventures and associates were presented as part of Direct employees. The 2021 numbers have been restated to reflect the new definition. This impacts the following indicators: Number of direct employees, all indicators under Recruitment and retention, Average investment in training and career development per employee and Proportion of women employees. The 2020 figures were not updated for practical reasons. The number of direct employees is used as the denominator for metrics linked to the material topics Talent management, Inclusion and diversity, and Health and safety. Direct employees also includes our CEE businesses which have not been fully divested. |
3 |
Leavers refer to direct employees where termination date is within reporting period. Involuntary turnover rate refers to direct employees where the termination date is within reporting period and the reason for leaving is involuntary. The indicators relating to Recruitment and retention do not include transfers where employees continue paid employment outside Aegon. In this regard we have not included the divested businesses of Aegon Turkey and Aegon Hungary in these 2022 indicators. Therefore the difference between new hires and leavers does not reconcile with the decrease of direct employees from 2021 to 2022. |
4 |
Global Employee Survey is provided through the third-party service provider Culture Amp. All employees, including those in joint ventures, participate in the survey on a voluntary basis. New hires employed for under three months do not participate. In 2022, just as in previous years, three engagement surveys were conducted throughout the year (Q1, Q2 and Q3). The results and participation rate disclosed reflect the most recent survey conducted in the third quarter of each year. |
5 |
In this context, senior management includes our Management Board and extends up to two levels below the Management Board (depending on the number of employees in each business or country unit). Performance target was 32% for 2020 (achieved), 34% for 2021 (achieved) and 36% for 2022. The 2021 and 2022 target and performance data do not include employees in our Central & Eastern Europe businesses that are in the process of being divested. |
6 |
Includes the members of the Management Board and the Executive Board. |
7 |
Employee absence refers to time off from work as a result of illness or injury. It excludes permitted leave of absence such as holiday, study/training, maternity or paternity leave and compassionate leave. |
8 |
The ratio of CEO compensation to average compensation is based on IFRS remuneration expenses for both the CEO and Aegon’s employees in 2022. Please refer to the Remuneration Report 2022 (pages 57-76) for more details. |
9 |
Policy compliance reflects business units’ compliance with specific requirements of those policies. Where there is not full compliance, this does not indicate a breach of the policy, but areas where units have requested time to further strengthen internal governance. |
10 |
All of Aegon’s employees in the Netherlands, other than senior management, are covered by the collective labor agreement of Aegon NL. Aegon, the unions and the Dutch Central Works Council are working closely together in a co-creation steering group which prepares new agreements and tracks the implementation thereof. The current collective labor agreement has a duration of two years, from July 1, 2022 up to and including June 30, 2024. Aegon has experienced no significant strike, work stoppage or labor dispute in recent years. |
Aegon Annual Report on Form 20-F 2022 | 437 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Change |
||||||||||||||||||
Other information |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||||
Premiums and commissions |
||||||||||||||||||
Premiums paid to reinsurers (in EUR billions) |
2.3 | 3.5 | (35%) |
2.7 | ||||||||||||||
Commissions paid to brokers and other intermediaries (in EUR billions) |
2.4 | 2.6 | (8%) |
2.3 | ||||||||||||||
Goods and services |
||||||||||||||||||
Total spend on goods and services (in EUR billions) |
1.5 | 1.7 | (8%) |
1.6 | ||||||||||||||
Spend on goods and services with top 250 (“in-scope”) suppliers (in EUR billions)1 |
1.5 | 1.4 | 6% |
1.3 | ||||||||||||||
Responsible sourcing |
Proportion of total spend on goods and services with top 250 (“in-scope”) suppliers1 |
96.2% | 85.5% | 10.7pp |
85.3% | |||||||||||||
Supplier ESG assessment |
||||||||||||||||||
Number of “in-scope” suppliers assessed for ESG performance2 |
97 | 81 | 20% |
67 | ||||||||||||||
Spend on goods and services with “in-scope” suppliers assessed for ESG performance (in EUR billions)2 |
1.1 | 0.8 | 26% |
0.8 | ||||||||||||||
Proportion of spend with ‘in-scope’ suppliers assessed for ESG performance2 |
72.4% | 59.2% | 13.2pp |
56.4% | ||||||||||||||
Overall score of “in-scope” suppliers assessed for ESG performance2 |
57.8 | n.m. | n.m. |
n.m. | ||||||||||||||
Proportion of “in-scope” suppliers scoring 1-25 |
0.0% | n.m. | n.m. |
n.m. | ||||||||||||||
Proportion of “in-scope” suppliers scoring 26-50 |
28.9% | n.m. | n.m. |
n.m. | ||||||||||||||
Proportion of “in-scope” suppliers scoring 51-75 |
60.8% | n.m. | n.m. |
n.m. | ||||||||||||||
Proportion of “in-scope” suppliers scoring 76-100 |
10.3% | n.m. | n.m. |
n.m. |
1 |
Our top-250 suppliers consistently represent at least 80% of our total supplier spend. |
2 |
Suppliers are assessed based on Ecovadis methodology with the objective to measure the quality of a company’s sustainability management system through its policies and actions. The allocation of suppliers in different scoring buckets is based on EcoVadis scoring methodology that takes into scope criteria around environmental care, labor and human rights, company ethics and sustainable procurement. The higher the score, the better the sustainability performance of the supplier. The spend data used to calculate the indicators for the supplier ESG assessment includes four quarters of data and covers the period October 1, 2021 to September 30, 2022. |
438 | Aegon Annual Report on Form 20-F 2022 |
Value created | ||||
Change |
||||||||||||||||||
Material Topic |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||||
Corporate governance 1 |
||||||||||||||||||
Supervisory Board |
||||||||||||||||||
Membership |
9 | 8 | 13% |
8 | ||||||||||||||
Average tenure (years) |
4 | 4 | 8% |
n.m. | ||||||||||||||
Average age |
64 | 63 | 1% |
n.m. | ||||||||||||||
Executive Board |
||||||||||||||||||
Business conduct and risk management |
Membership |
2 | 2 | 0% |
2 | |||||||||||||
Average tenure (years) |
4 |
3 |
42% |
n.m. |
||||||||||||||
Average age |
60 | 58 | 3% |
n.m. | ||||||||||||||
Management Board |
||||||||||||||||||
Membership |
12 | 8 | 50% |
10 | ||||||||||||||
Average tenure (years) |
4 | 4 | 5% |
n.m. | ||||||||||||||
Average age |
52 | 52 | 1% |
n.m. | ||||||||||||||
Supervisory Board oversight |
||||||||||||||||||
Number of regular Supervisory Board meetings |
7 | 7 | 0% |
n.m. | ||||||||||||||
Proportion regular Supervisory Board meetings fully attended |
100% | 100% | 0pp |
n.m. | ||||||||||||||
Number of Audit Committee meetings |
6 | 5 | 20% |
n.m. | ||||||||||||||
Proportion Audit Committee meetings fully attended |
100% | 100% | 0pp |
n.m. | ||||||||||||||
Number of Risk Committee meetings |
6 | 4 | 50% |
n.m. | ||||||||||||||
Proportion Risk Committee meetings fully attended |
100% | 100% | 0pp |
n.m. | ||||||||||||||
Business conduct and risk management |
Number of Remuneration Committee meetings |
6 | 6 | 0% |
n.m. | |||||||||||||
Proportion of Remuneration Committee meetings fully attended |
100% | 100% | 0pp |
n.m. | ||||||||||||||
Number of Nomination and Governance Committee meetings |
6 | 6 | 0% |
n.m. | ||||||||||||||
Proportion of Nomination and Governance Committee meetings fully attended |
100% | 100% | 0pp |
n.m. | ||||||||||||||
Number of additional meetings / calls 2 |
17 | 3 | 467% |
n.m. | ||||||||||||||
Proportion of additional meetings / calls fully attended |
76% | 100% | (24pp) |
n.m. | ||||||||||||||
CONTINUED > |
Aegon Annual Report on Form 20-F 2022 | 439 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Change |
||||||||||
Material Topic |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 | |||||
Financial returns |
||||||||||
Returns to investors |
||||||||||
Returns to investors paid in the year (in EUR millions) |
631 | 509 | 24% |
370 | ||||||
Dividend payments (in EUR millions) 3 |
407 | 289 | 41% |
123 | ||||||
Solid financial performance |
Interest (payments to bondholders) (in EUR millions) |
223 | 220 | 1% |
248 | |||||
Dividend over the fiscal year per common share (EUR) 4 |
0.23 | 0.17 | 35% |
0.12 | ||||||
Share price (change) |
7.9% | 35.8% | (27.9pp) |
(20.0%) | ||||||
Total shareholder return (TSR) |
11.6% | 40.6% | (29.0pp) |
(18.4%) | ||||||
Sustainability (external recognition) |
||||||||||
Sustainability benchmarks 5 |
||||||||||
MSCI ESG ratings assessment |
AA | AA | ¬ ® |
AA | ||||||
Sustainalytics ESG risk rating |
14.2 (low risk) | 14.6 (low risk) | h |
17.0 (low risk) | ||||||
ISS ESG corporate rating |
C+ (Prime) | C+ (Prime) | ¬ ® |
C (Prime) | ||||||
CDP (Climate change) score |
C | C | ¬ ® |
C | ||||||
Responsible products, treating customers fairly |
FTSE4Good index series constituent |
Index member | Index member | ¬ ® |
Index member | |||||
Moody’s ESG overall score |
Robust | Robust | ¬ ® |
Robust | ||||||
S&P global corporate sustainability assessment (CSA) score |
55 | 51 | h |
43 | ||||||
EcoVadis scorecard |
Silver | n.m. | n.m. |
n.m. | ||||||
Refinitiv ESG score |
A | A- | h |
B+ | ||||||
Bloomberg ESG disclosure score |
53.4 | 52.4 | h |
50.4 |
1 |
Aegon has a two-tier system of corporate governance, with an independent Supervisory Board and a separate Executive Board. The Executive Board (consisting of the CEO and CFO) is supported by a Management Board. |
2 |
Throughout the year several sub-committee and ad-hoc meetings were scheduled to discuss - amongst others - strategy-related topics and the audit tender process. The detailed breakdown of these meetings and attendance can be found in the Report of the Supervisory Board on pages 48-56. |
3 |
Dividend payments is based on the actual cash outflow relating to the paid dividend in the reporting year and is taking into account the cashflows relating to the share buy-backs to avoid dilution. It does not include the impact of other share buy-backs. |
4 |
Aegon’s final dividend for 2022 is subject to approval by the company’s Annual General Meeting of Shareholders, due to take place in May 2023. |
5 |
Sustainability benchmark scoring reflects the most recent assessments made available for any given year. There is a lag time between Aegon’s annual reporting and the assessment of that by a benchmark. For example, a benchmark score presented under the 2022 reporting year will usually reflect Aegon’s 2021 (although sometimes 2020) annual reporting, according to Aegon’s place in the assessment cycle of any given benchmark (which can be variable). The 2022 benchmark scores reflect the position at the date of publication of the Aegon Annual Report on Form 20-F 2022. |
440 | Aegon Annual Report on Form 20-F 2022 |
Value created | ||||
Change |
||||||||||||||||||
Material Topic |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||||
Responsible investment |
||||||||||||||||||
Responsible investment solutions (RIS) |
||||||||||||||||||
Assets under management in RIS (in EUR billions) 1 |
120.2 | 177.7 | (32%) |
167.0 | ||||||||||||||
Exclusions 2 |
103.9 | 160.5 | (35%) |
157.6 | ||||||||||||||
Best-in-class 3 |
9.4 | 10.2 | (8%) |
3.3 | ||||||||||||||
Sustainability-themed 4 |
2.7 | 2.9 | (8%) |
2.4 | ||||||||||||||
Impact investments 5 |
4.2 | 4.1 | 3% |
3.7 | ||||||||||||||
Engagement and voting 6 |
||||||||||||||||||
Responsible investing |
Number of engagements with investee companies |
832 | 596 | 40% |
575 | |||||||||||||
Proportion engagements addressing environmental themes |
24% | 31% | (7pp) |
25% | ||||||||||||||
Proportion engagements addressing social themes |
18% | 19% | (1pp) |
21% | ||||||||||||||
Proportion engagements addressing governance themes |
44% | 38% | 6pp |
53% | ||||||||||||||
Proportion engagements addressing general disclosure themes |
14% | 11% | 3pp |
8% | ||||||||||||||
Number of shareholder meetings of invested companies where votes cast 7 |
3,899 | 2,963 | 32% |
2,511 | ||||||||||||||
Climate change (investment footprint) |
||||||||||||||||||
Corporate Fixed Income + Listed Equity (CFI) 8 |
||||||||||||||||||
CFI absolute footprint (metric tons CO 2 e) |
2,640,000 | 4,886,000 | (46%) |
4,878,000 | ||||||||||||||
CFI relative intensity (metric tons CO 2 e/EURm invested) |
84 | 110 | (24%) |
110 | ||||||||||||||
CFI absolute footprint and relative intensity (coverage) |
89% | 72% | 17pp |
77% | ||||||||||||||
Climate change |
Weighted average carbon intensity (metric tons CO 2 e/EURm revenue) |
390 | 490 | (20%) |
470 | |||||||||||||
Weighted average carbon intensity (coverage) |
96% | 97% | (1pp) |
97% | ||||||||||||||
Carbon Risk Rating (Sustainalytics) |
10.5 | 9.9 | 6% |
9.4 | ||||||||||||||
Carbon Risk Rating (Sustainalytics) (coverage) |
85% | 73% | 12pp |
63% | ||||||||||||||
CONTINUED > |
Aegon Annual Report on Form 20-F 2022 | 441 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Change |
||||||||||||||||||
Material Topic |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||||
Climate change (investment footprint) |
||||||||||||||||||
Weighted average carbon intensity reduction target |
||||||||||||||||||
Reduction of weighted average carbon intensity against 2019 baseline (%) |
(20%) | 0% | (20pp) |
n.m. | ||||||||||||||
Sovereign Fixed Income (SFI) 9 |
||||||||||||||||||
Absolute footprint (metric tons CO 2 e) |
7,528,000 | 15,088,000 | (50%) |
13,863,000 | ||||||||||||||
Climate change |
Relative intensity (metric tons CO 2 e/EURm invested) |
510 | 620 | (18%) |
500 | |||||||||||||
SFI absolute footprint and relative intensity (coverage) |
100% | 100% | 0pp |
98% | ||||||||||||||
Weighted average carbon intensity (metric tons CO 2 e/EURm GDP) |
310 | 310 | 0% |
330 | ||||||||||||||
Weighted average carbon intensity (coverage) |
100% | 100% | 0pp |
98% | ||||||||||||||
Climate change resiliency (ND GAIN rating) |
66 | 67 | (1%) |
67 | ||||||||||||||
Climate change resiliency (coverage) |
100% | 100% | 0pp |
98% | ||||||||||||||
Climate change (operational footprint) |
||||||||||||||||||
Greenhouse gas (GHG) emissions (metric tons CO 2 e)10 |
||||||||||||||||||
Scope 1 (gas) |
4,170 | 5,557 | (25%) |
n.m. | ||||||||||||||
Scope 2 (electricity: location-based) |
12,828 | 16,366 | (22%) |
n.m. | ||||||||||||||
Scope 2 (electricity: market-based) |
480 | 203 | 137% |
n.m. | ||||||||||||||
Scope 3 (air travel) |
6,433 | 2,101 | 206% |
n.m. | ||||||||||||||
Total GHG emissions (location-based) |
23,432 | 24,024 | (2%) |
n.m. | ||||||||||||||
Total GHG emissions / EUR million revenue (location-based) |
0.9 | 1.0 | (2%) |
n.m. | ||||||||||||||
Climate change |
Total GHG emissions / employee (location-based) 11 |
1.6 | 1.5 | 5% |
n.m. | |||||||||||||
Total GHG emissions (market-based) |
11,084 | 7,861 | 41% |
n.m. | ||||||||||||||
Total GHG emissions / EUR million revenue (market-based) |
0.4 | 0.3 | 42% |
n.m. | ||||||||||||||
Total GHG emissions / employee (market-based) 11 |
0.8 | 0.5 | 51% |
n.m. | ||||||||||||||
Operational footprint reduction target 12 |
||||||||||||||||||
Total scope 1+2 (location-based) (metric tons CO 2 e) |
16,999 | 21,923 | (22%) |
n.m. | ||||||||||||||
Absolute reduction of scope 1+2 against baseline 2019 (metric tons CO 2 e) |
(24,798) | (19,874) | 25% |
n.m. | ||||||||||||||
Relative reduction of scope 1+2 against baseline 2019 (%) |
(59.3%) | (47.5%) | (11.8pp) |
n.m. | ||||||||||||||
CONTINUED > |
442 | Aegon Annual Report on Form 20-F 2022 |
Value created | ||||
Change |
||||||||||||||||||
Material Topic |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||||
Climate change (operational footprint) |
||||||||||||||||||
Energy consumption (MWh) |
||||||||||||||||||
Fuel (gas) |
20,238 | 27,288 | (26%) |
n.m. | ||||||||||||||
Electricity (renewable) |
33,090 | 49,283 | (33%) |
n.m. | ||||||||||||||
Green tariff / Renewable Energy Certificate (REC) |
33,065 | 49,259 | (33%) |
n.m. | ||||||||||||||
Self-generated |
25 | 24 | 1% |
n.m. | ||||||||||||||
Electricity (non-renewable) |
1,927 | 580 | 232% |
n.m. | ||||||||||||||
Electricity (total) |
35,017 | 49,863 | (30%) |
n.m. | ||||||||||||||
Total energy (fuel and electricity) |
55,256 | 77,151 | (28%) |
n.m. | ||||||||||||||
Climate change |
Renewable electricity (% of total electricity) |
94% | 99% | (4pp) |
n.m. | |||||||||||||
Renewable energy (% of total energy) |
60% | 64% | (4pp) |
n.m. | ||||||||||||||
Air travel 13 |
||||||||||||||||||
Total distance (million km) |
47.6 | 16.3 | 192% |
n.m. | ||||||||||||||
Economy (% total distance) |
81% | 87% | (6pp) |
n.m. | ||||||||||||||
Premium (% total distance) |
19% | 13% | 6pp |
n.m. | ||||||||||||||
Route type <500km (% total distance) |
6% | 3% | 3pp |
n.m. | ||||||||||||||
Route type >500km (% total distance) |
94% | 97% | (3pp) |
n.m. | ||||||||||||||
Compliance |
||||||||||||||||||
Policy compliance 14 |
||||||||||||||||||
Proportion employees completed training on Code of Conduct |
99% | 98% | 1pp |
97% | ||||||||||||||
Proportion of compliance with Anti-bribery policy requirements |
87% | 87% | (0pp) |
89% | ||||||||||||||
Proportion of compliance with Conflict of interest policy requirements |
98% | 98% | 0pp |
92% | ||||||||||||||
Proportion of compliance with Pricing and product development policy requirements |
98% | 97% | 1pp |
93% | ||||||||||||||
Systematic Integrity Risk Assessment (SIRA) 15 |
||||||||||||||||||
Business conduct and risk management |
Actions completed |
73% | 77% | (4pp) |
76% | |||||||||||||
Actions completed and progressing within deadline |
82% | 81% | 1pp |
80% | ||||||||||||||
Fraudulent activity |
||||||||||||||||||
Incidents/attempts of fraud |
594 | 889 | (33%) |
4,014 | ||||||||||||||
Employees |
0.2% | 0.1% | 0.1pp |
n.m. | ||||||||||||||
Intermediaries |
3% | 21% | (18pp) |
n.m. | ||||||||||||||
Third parties |
97% | 79% | 18pp |
n.m. | ||||||||||||||
Number of investigations completed |
1,389 | n.m. | n.m. |
n.m. | ||||||||||||||
Employees |
0% | n.m. | n.m. |
n.m. | ||||||||||||||
Intermediaries |
13% | n.m. | n.m. |
n.m. | ||||||||||||||
Third parties |
87% | n.m. | n.m. |
n.m. | ||||||||||||||
CONTINUED > |
Aegon Annual Report on Form 20-F 2022 | 443 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||
Change |
||||||||||||||||||
Material Topic |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||||
Compliance |
||||||||||||||||||
Political advocacy |
||||||||||||||||||
Monetary value of political contributions (in EUR million) 16 |
0.2 | n.m. | n.m. |
n.m. | ||||||||||||||
Business conduct and risk management |
Monetary value of political lobbying / advocacy (in EUR million) 17 |
0.9 | n.m. | n.m. |
n.m. | |||||||||||||
Monetary value of membership of professional / advocacy associations (in EUR million) 18 |
5.8 | n.m. | n.m. |
n.m. | ||||||||||||||
Information security |
||||||||||||||||||
Information security and phishing awareness |
||||||||||||||||||
Number of employees enrolled in the annual Information security training 19 |
15,608 | n.m. | n.m. |
n.m. | ||||||||||||||
Proportion of employees completed the annual Information security training |
95% | n.m. | n.m. |
n.m. | ||||||||||||||
Cybersecurity and data protection |
Number of enterprise-wide phishing campaigns launched during the year 20 |
4 | n.m. | n.m. |
n.m. | |||||||||||||
Data privacy |
||||||||||||||||||
Number of employees enrolled in specific training on data privacy 21 |
11,905 | n.m. | n.m. |
n.m. | ||||||||||||||
Proportion of employees completed specific training on data privacy |
98% | n.m. | n.m. |
n.m. | ||||||||||||||
CONTINUED > |
444 | Aegon Annual Report on Form 20-F 2022 |
Value created | ||||
Change |
||||||||||||||||||
Other information |
Performance Indicator |
2022 |
2021 |
2021 to 2022 |
2020 |
|||||||||||||
Total taxes borne by Aegon (in EUR millions) 22 |
362 | 381 | (5%) |
319 | ||||||||||||||
Corporate income tax 22 |
32 | (18) | n.a. |
10 | ||||||||||||||
Americas |
(3) | 55 | n.a. |
(43) | ||||||||||||||
Responsible tax |
The Netherlands |
3 | (75) | n.a. |
33 | |||||||||||||
United Kingdom |
0.4 | (2) | n.a. |
14 | ||||||||||||||
Others |
32 | 3 | n.a. |
6 | ||||||||||||||
Taxes collected on behalf of others 22 |
2,585 | 2,409 | 7% |
2,509 | ||||||||||||||
Cash donations |
||||||||||||||||||
Total cash donations (in EUR millions) 23 |
10.6 | 9.4 | 13.2% |
9.5 | ||||||||||||||
Financial security and education |
2.0 | 2.0 | 0.4% |
3.0 | ||||||||||||||
Financial education and literacy |
1.6 | 1.6 | 1.4% |
2.7 | ||||||||||||||
Employability later in life |
0.3 | 0.3 | (4.5%) |
0.3 | ||||||||||||||
Wellbeing and longevity |
6.8 | 5.6 | 22.0% |
5.7 | ||||||||||||||
Physical fitness |
0.2 | 0.2 | (8.7%) |
0.2 | ||||||||||||||
Mental vitality |
1.1 | 0.5 | 92.4% |
0.9 | ||||||||||||||
Prevention of diseases |
1.1 | 1.3 | (13.0%) |
1.7 | ||||||||||||||
Livable communities |
4.5 | 3.6 | 25.8% |
2.9 | ||||||||||||||
Other cash donations |
1.8 | 1.8 | (0.2%) |
0.8 | ||||||||||||||
Community engagement/ investment |
Proportion of cash donations to key themes |
83% | 81% | 2pp |
92% | |||||||||||||
Financial security and education |
18% | 21% | (2pp) |
32% | ||||||||||||||
Wellbeing and longevity |
65% | 60% | 5pp |
60% | ||||||||||||||
Number of organizations receiving donations |
493 | 469 | 5% |
481 | ||||||||||||||
Volunteering |
||||||||||||||||||
Volunteering hours |
16,911 | 6,806 | 148% |
4,399 | ||||||||||||||
Volunteering value (in EUR millions) 24 |
1.2 | 0.3 | 309% |
0.2 | ||||||||||||||
Total investment |
||||||||||||||||||
Total value community investment (in EUR millions) |
11.8 | 9.7 | 22% |
9.7 | ||||||||||||||
Total value community investment as proportion of net result |
0.5% | 0.6% | (0.1pp) |
17.6% |
1 |
Aegon AM has a Responsible Investment Framework that reflects the key elements of our Responsible Investment Policy, as well as similar policies put forward by Aegon AM’s clients. The framework is structured around ESG integration, Active ownership and Solutions. The responsible investment solutions are based on four categories: exclusion-based strategies, best-in-class |
2 |
“Exclusions” reflects the portfolio that is subject to negative screening to avoid investments in certain sectors, companies or practices based on specific criteria. The number has dropped compared to 2021 mainly because non-listed assets classes, including mortgages, real estate, private equity and structured assets and listed assets including US government bonds were excluded from the scope in 2022. The total amount for these asset classes in 2021 was EUR 41.3 billion. |
3 |
“Best-in-class” |
4 |
“Sustainability-themed” investments focuses on issuers whose activities or practices are aligned with sustainability themes in an effort to generate competitive returns over the long term. |
5 |
“Impact investments” pursue financial returns alongside measurable positive social and/or environmental impact. |
6 |
With regards to engagement, through our investment exposure, and where appropriate, we look to build a constructive dialogue with the companies and bodies either bilaterally or as part of an investor consortium, as we promote responsible business practices. Percentages may not sum to 100 due to rounding. Themes are divided according to the main issue. At times, there is more than one theme for an engagement. With regards to voting, for Aegon AM’s relevant investment strategies that incorporate equities, we seek to execute votes in alignment with our engagement objectives and clients’ best interests. The scope is general account assets managed by Aegon AM and assets managed on behalf of third-party clients. |
7 |
The increase in voted shareholder meetings compared to 2021 is due to a new voting strategy. Aegon AM implemented as of February 2022 a “vote all meetings” strategy. Prior to that Aegon AM made a selection of investee companies. |
Aegon Annual Report on Form 20-F 2022 | 445 |
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About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
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8 |
The scope covers global general account assets only. The disclosures are based on Aegon calculations. Values are as of December 31. Relative intensity, weighted average carbon intensity and carbon risk rating are extrapolated in case carbon data is not available. The availability of data for each indicator is expressed in a coverage ratio as disclosed above. Climate change data availability may change over time and characteristics will vary. Certain information from © 2023 Sustainalytics, MSCI ESG Research L.L.C. are reproduced with permission. Not for further distribution. For more information refer to the TCFD section in this report. |
9 |
The scope covers global general account assets only. The disclosures are based on Aegon calculations. Values are as of December 31. Relative intensity, weighted average carbon intensity and climate change resiliency are extrapolated in case carbon data is not available. The availability of data for each indicator is expressed in a coverage ratio as disclosed above. For 2022 the data coverage for SFI indicators is 100% and therefore no extrapolation is needed. Climate change data availability may change over time and characteristics will vary. For more information refer to the TCFD section in this report. |
10 |
Operational GHG emissions are based on known energy consumption and air travel activity. Energy consumption data is extrapolated by floorspace for any sites missing consumption data. Further extrapolation is undertaken for employees working permanently from home by applying an average employee consumption of our office premises for each business unit. Prior to 2022, data collection was limited to our largest business units (Transamerica, Aegon NL, Aegon UK and Aegon AM), with extrapolation for remaining business units based on headcount for both energy consumption and air travel. Where possible, GHG emissions are calculated on the basis of locally-specific conversion factors. Scope 1 conversion factors for gas consumption are sourced from the UK Department for Environment, Food & Rural Affairs (Defra) using “100% mineral” for the US, and “5% biofuel blend” for the Netherlands, United Kingdom, Spain and Hungary. Scope 2 GHG emissions are expressed through both the GHG Protocol “location” and “market” based approaches, with location-based conversion factors for electricity consumption sourced from the US Environmental Protection Agency (eGRID regions), the European Environment Agency for the Netherlands, Spain and Hungary, and Defra for the UK. For the market-based approach, conversion factors are sourced from individual electricity suppliers, 94% of which is zero carbon through our purchase of renewable electricity in the form of “green tariff” supply contracts and renewable energy certificates (RECs). Conversion factors for air travel are sourced solely from Defra due to applicability for all countries. |
11 |
The definition of “Direct employees” has changed in 2022 compared to previous years. Based on the new definition, direct employees include employees from Aegon N.V. and its 100% subsidiaries only, and is therefore limited to entities over which Aegon has direct control. In previous years, the employees of joint ventures and associates were presented as part of Direct employees. The 2021 figures have been restated to reflect the new definition. The 2020 figures were not updated for practical reasons. |
12 |
Aegon has set a target to reduce the absolute carbon footprint of its operational activities (GHG Emissions Scope 1 and 2) by 25% by 2025, against a 2019 baseline of 41,797 metric tons CO 2 e. (using the location-based measurement). Hybrid working continues to facilitate a reduction in the overall emissions of property portfolio with initiatives such as closing our offices on Fridays in the UK and US locations. Our hybrid working model continues to mature with resulting benefits on the size and cost of our operational properties, and achieving our carbon reduction target. The indicator “Absolute reduction against baseline” includes GHG Emissions Scope 1 and 2 only. The 2021 figure incorrectly included air travel emissions, which has been restated as 19,874 (2021: 28,512). The 2021 figure for “Relative reduction of scope 1+2 against baseline 2019 (%)” has also been restated as 48% (2021: 54%). |
13 |
Aegon will look towards expanding the measurement of its operational Scope 3 GHG emissions beyond air travel. |
14 |
Policy compliance reflects business units’ compliance with specific requirements of those policies. Where there is not full compliance, this does not indicate a breach of the policy, but areas where units have requested time to further strengthen internal governance. |
15 |
Aegon undertakes an annual systematic integrity risk assessment (SIRA). All regions provide insight into their local anti-fraud programs and indicate that controls with regard to internal, external, and intermediary fraud are properly designed and operating effectively. Aegon takes steps to address any gaps in performance. |
16 |
Political contributions may include financial or in-kind support provided directly to political parties, their elected representatives or persons seeking political office. It may also include indirect political contributions referring to those political contributions made through an intermediary organization such as a lobbyist or charity, or support given to an organization such as a think tank or trade association linked to or supporting particular political parties or causes. The contribution in 2022 consists of the contributions by Transamerica’s Political Action Committee (PAC), which is a committee acting independently from Aegon or Transamerica. The PAC receives voluntary donations from Transamerica employees and distributes the pooled donations according to the decision of the independent board of the PAC. |
17 |
Political lobbying / advocacy refers to the expenses paid for activities carried out towards governments, governmental institutions and/or regulators in support of issues and initiatives that we think will benefit our customers, employees, wider society and our businesses. The expenses paid in 2022 mainly reflect the cost of staffing dedicated to lobbying or advocacy activities. |
18 |
A membership of professional / advocacy association refers to an agreement by which someone joins a professional association or an advocacy association. Hereby a professional association is defined as a body of persons engaged in the same profession, formed usually, to maintain standards, and represent the profession in discussions with other bodies or institutions. An advocacy association engages in advocacy for the industry towards other bodies, institutions, or policymakers, although advocacy may not be the only type of activity that the association undertakes. |
19 |
Direct employees and eligible contingent workers who are enrolled in Information security training at least annually which covers relevant Information security topics based on risk assessments, best practices and appropriate behaviors. Eligible contingent workers are contractors with an (Active Directory) Aegon or Transamerica account and selected for the training. The selection is performed at the discretion of each business unit. |
20 |
Enterprise wide phishing campaigns are executed on a quarterly basis to all direct employees and all contingent workers with an e-mail account on the Aegon or Transamerica network. In addition, targeted campaigns are executed periodically with a subset of users based on a common risk profile (e.g., Human Resources). |
21 |
Direct employees and eligible contingent workers who are enrolled in an annual data privacy training. The training modules are different per region to address specific local legislations. The focus in Europe is on GDPR. Eligible contingent workers are contractors with an (Active Directory) Aegon or Transamerica account and selected for the training. The selection is performed at the discretion of each business unit. |
22 |
The information in the tax table includes the tax data of all entities over which Aegon has management control including the tax data of divested business until the date of closing. For corporate income tax, there is often no direct correlation between tax reported on earnings for any given year and amounts paid or received in tax. Part of the explanation for this is that certain tax-deductible items are not recognized in the company’s profit & loss statement but directly in equity. Additionally payments and refunds for prior years can impact the amounts paid or received in the current year. There is no 2022 US current tax liability due to current year losses, carry back of capital losses, and tax credits. |
23 |
Cash donations refer to charitable donations to charities and other non-profit organizations, done in accordance with the Aegon N.V. Charitable Donations Standards. |
24 |
Volunteering value is calculated using the average hourly employee cost (based on total employment costs). |
446 | Aegon Annual Report on Form 20-F 2022 |
External recognition | ||||
1 |
© www.msci.com/our-solutions/esg-investing/esg-ratings-climate-search-tool |
2 |
© www.sustainalytics.com/legal-disclaimers |
3 |
© www.issgovernance.com/esg/ratings/corporate-rating/ |
4 |
© www.ftserussell.com/products/indices/ftse4good |
5 |
© www.moodys.com/esg-solutions |
6 |
© www.cdp.net/en |
7 |
© www.ecovadis.com |
Aegon Annual Report on Form 20-F 2022 | 447 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
¨ |
Unexpected delays, difficulties, and expenses in executing against our environmental, climate, diversity and inclusion or other “ESG” targets, goals and commitments outlined in this document, and changes in laws or regulations affecting us, such as changes in data privacy, environmental, safety and health laws; |
¨ |
Changes in general economic and/or governmental conditions, particularly in the United States, the Netherlands and the United Kingdom; |
¨ |
Civil unrest, (geo-) political tensions, military action or other instability in a country or geographic region; |
¨ |
Changes in the performance of financial markets, including emerging markets, such as with regard to: |
t |
The frequency and severity of defaults by issuers in Aegon’s fixed income investment portfolios; |
t |
The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities Aegon holds; |
t |
The effects of declining creditworthiness of certain public sector securities and the resulting decline in the value of government exposure that Aegon holds; and |
t |
The impact from volatility in credit, equity, and interest rates; |
¨ |
Changes in the performance of Aegon’s investment portfolio and decline in ratings of Aegon’s counterparties; |
¨ |
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; |
448 | Aegon Annual Report on Form 20-F 2022 |
Disclaimer | ||||
¨ |
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 the European Union’s Solvency II requirements and other regulations in other jurisdictions affecting the capital Aegon is required to maintain; |
¨ |
Changes affecting interest rate levels and low or rapidly changing interest rate levels; |
¨ |
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 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; |
¨ |
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 we do business may disrupt Aegon’s business, damage its reputation and adversely affect its results of operations, financial condition and cash flows; |
¨ |
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 realize anticipated results, 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 monetary union in whole or in part, or the exit of the United Kingdom from the European Union and potential consequences if other European Union countries leave the European Union; |
¨ |
Changes in laws and regulations, particularly 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; |
¨ |
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; and |
¨ |
Changes in ESG standards and requirements, including assumptions, methodology and materiality, or a change by Aegon in applying such standards and requirements, voluntarily or otherwise, may affect Aegon’s ability to meet evolving standards and requirements, or Aegon’s ability to meet its sustainability and ESG-related goals, or related public expectations. |
Aegon Annual Report on Form 20-F 2022 | 449 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
¨ |
We may also rely on third-party information in certain of our disclosures, which may change over time as methodologies and data availability and quality continue to evolve. These factors, as well as any inaccuracies in third-party information we use, including in estimates or assumptions, may cause results to differ materially and adversely from statements, estimates, and beliefs made by us or third-parties. Moreover, our disclosures based on any standards may change due to revisions in framework requirements, availability of information, changes in our business or applicable governmental policies, or other factors, some of which may be beyond our control. Additionally, we may provide information that is not necessarily material for SEC reporting purposes but that is informed by various ESG standards and frameworks (including standards for the measurement of underlying data), internal controls, and assumptions or third-party information that are still evolving and subject to change. |
450 | Aegon Annual Report on Form 20-F 2022 |
Contact | ||||
Colophon |
||
Consultancy and design |
DartGroup, Amsterdam (NL) | |
Editing and production |
Aegon Corporate Communications (NL) | |
Typesetting |
DartGroup, Amsterdam (NL) |
Aegon Annual Report on Form 20-F 2022 | 451 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
452 | Aegon Annual Report on Form 20-F 2022 |
Index to Exhibits | ||||
Index to Exhibits | ||
1 |
||
2.1 |
Any instruments defining the rights of long-term debt holders. None of our instruments relating to long-term debt has total amount of securities authorized thereunder that exceed 10% of our consolidated total assets. Pursuant to the requirement of this item, we agree to furnish to the SEC upon request a copy of any instrument defining the rights of holders of long-term debt of us or of our subsidiaries for which consolidated or unconsolidated financial statements are required to be filed. | |
2.2 |
||
4.1 |
||
4.2 |
||
4.3* |
||
4.4*** |
||
8 |
||
12.1 |
||
12.2 |
||
13** |
||
15 |
||
101.INS |
XBRL Instance Document | |
101.SCH |
XBRL Taxonomy Schema Linkbase Document | |
101.CAL |
XBRL Taxonomy Calculation Linkbase Document | |
101.DEF |
XBRL Taxonomy Definition Linkbase Document | |
101.LAB |
XBRL Taxonomy Labels Linkbase Document | |
101.PRE |
XBRL Taxonomy Presentation Linkbase Document | |
104. |
Cover page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |
(1) Incorporated by reference to Form 6K (0001104659-13-046533) | ||
(2) Incorporated by reference to Exhibit 2.2 to Form 20-F 2021 filed with the SEC on March 21, 2022. | ||
(3) Incorporated by reference to Exhibit 4.1 to Form 20-F 2013 filed with the SEC on March 21, 2014. | ||
(4) Incorporated by reference to Exhibit 4.2 to Form 20-F 2013 filed with the SEC on March 21, 2014. | ||
(5) Incorporated by reference to Exhibit 99.1 to Registration Statement on Form S-8 (No. 333-238186) filed with the SEC on May 12, 2020. |
* |
Indicates management contract or compensatory plan. | |
** |
Furnished herewith. | |
*** |
Certain information in this agreement and its schedules has been omitted in accordance with the instructions as to Exhibits of Form 20-F, but will be furnished supplementary to the SEC upon request. |
Aegon Annual Report on Form 20-F 2022 | 453 |
![]() |
About Aegon |
Governance and risk management |
Financial information |
Non-financial information |
||||||||||
Matthew J. Rider |
||
Chief Financial Officer |
454 | Aegon Annual Report on Form 20-F 2022 |