Presentation of certain information References to the ‘NYSE’ are to the New York Stock Exchange and references to the SEC are to the US Securities and Exchange
2016 was once again a year of strong sales – especially in terms of our fee businesses, in particular Asset Management – and I am therefore happy that we reached over EUR 100 billion of gross deposits for the very first time, which contributed to EUR 3 billion net deposits. This strong performance was above all a reflection of the need and relevance of our products and services, the strength of our franchise, and the trust our loyal customers continue to place in us.
changing needs. For this reason we, once again, invested significantly in developing innovative digital solutions – from new apps and customer-friendly platforms that enable people to better understand their finances, to exploring the future of the insurance industry through co-launching the Blockchain
Our employees and shareholders On behalf of Aegon’s Management Board, I would like to express my sincere thanks to over 29,000 colleagues for all that they do.
1 On September 6, 2016, Aegon announced Mr. Button’s decision to step down as CFO and to leave the Company on December 1, 2016. On November 29, 2016, Aegon announced that its Supervisory Board intends to nominate Matthew J. Rider (1963, US Citizen) for appointment as CFO and member of the Executive Board at its Annual General Meeting of Shareholders on May 19, 2017.
Mr. Kepecs has been a member of Aegon’s Management Board since 2008. Mr. Kepecs has not held any external board memberships in the past five years.2
Mr. Mullin served as President and CEO of one of Aegon’s US
Total life insurance gross premiums 7,363 2,015 9,888 399 191 12,493 1,121 - (78) 20,898 (498) 20,400
Capital management During 2016, shareholders’ equity decreased by EUR 1.8 billion to EUR 20.9 billion, as a result of a EUR 400 million share buyback and the impact from higher interest rates on revaluation reserves. During the year, the revaluation reserves decreased by
In addition, the loss on interest rate swaps was the main driver of the EUR 68 million fair value losses in 2015 at the holding.
at the end of 2015 due to earnings generated during the year.
Results 2016 Americas The net income from the Americas amounted to USD 618 million in 2016. Underlying earnings before tax in 2016 were stable compared with 2015 at USD 1.4 billion. Expense reductions and an improvement in claims experience compared with 2015 offset lower variable annuities underlying earnings before tax and the impact on recurring underlying earnings before tax of the actuarial assumption changes and model updates implemented in the third quarter of 2015. Gross deposits increased to USD 45.3 billion in 2016 compared with 2015, as a result of the deposits from the defined contribution business acquired from Mercer in 2015, which more than offset lower variable annuity deposits. New life sales declined to USD 600 million in 2016 compared with 2015 due to a decline in the recruitment of new agents and Aegon’s strict pricing policy, while new premium production for accident & health insurance was down to USD 0.9 billion compared with 2015 due to lower contribution from portfolio acquisitions and several product exits.
Underlying earnings before tax Underlying earnings before tax in 2016 were stable compared with 2015 at USD 1.4 billion. Expense reductions and an improvement in claims experience compared with 2015 offset lower variable annuities underlying earnings before tax and the impact on recurring underlying earnings before tax of the actuarial assumption changes and model updates implemented in the third quarter of 2015.
Variable universal life insurance Variable universal life insurance is cash-value life insurance that offers both a death benefit and an investment feature.
Whole life insurance Whole life insurance provides permanent death benefit protection, provided that the required premiums are paid, while accumulating tabular cash values based on statutory requirements. Premiums are generally fixed and usually payable over the life of the policy.
Depending on the product chosen by the plan sponsor, unrestricted access to the entire universe of publicly-available investments can be offered. Smaller plans have access to an array of hundreds of investment choices from more than 40 investment management companies.
Transamerica Advice Center, a team of experienced registered representatives and registered investment advisors. Solutions include IRAs, advisory services, annuities and access to other financial products and resources.
In the area of financial regulation, state regulators implement and supervise statutory reserve and capital requirements, including minimum risk-based capital solvency standards.
Board also has authority to establish capital standards for systemically significant insurers, and insurers that are also
Production for the United Kingdom Gross deposits of EUR 5.8 billion in 2016 were mainly driven by the addition of new customers as the platform continues to grow. New life sales decreased compared with 2015 to EUR 66 million in 2016.
Commissions and expenses for Central & Eastern Europe Commissions and expenses increased by 2% in 2015 to
EUR 264 million compared with 2014. Operating expenses were up 4% to EUR 143 million in 2015, compared with 2014, mainly due to higher marketing expenses to support growth.
For general insurance business there were higher sales compared with 2014 amounting to EUR 36 million in 2015 in Central &
Knab, Aegon’s online bank, enables customers to make their own choices regarding their personal financial situation, thereby helping them to achieve their financial goals. The online bank reflects Aegon’s purpose by offering customers an insight and overview of their finances through its unique financial planning tools. It alerts them to opportunities relevant to their personal situation and offers a wide range of banking products, with a focus on wealth accumulation and payment services.
Products Aegon the Netherlands provides full-service pension solutions, administration-only services and life or disability insurances to company and industry pension funds, large companies and owners of small and medium-sized companies.
With regard to banks, DNB undertakes its supervisory role, in particular with respect to prudential supervision, together with the European Central Bank (ECB).
Supervision Act. A large part of the Level II Solvency II rules are, however, also set out in EU regulations, which apply directly in EU member states, and as a consequence have not been implemented into national legislation, such as in the Decree on
The BBRD provides for early intervention measures that may be imposed by the national competent authority in respect of Aegon
As part of the resolution scheme to be adopted by the national resolution authority it may decide to apply certain resolution tools and exercise its powers pursuant to the implemented BRRD in order to give effect to such resolution tools. In addition, the SRM
Acquisitions and disposals Aegon UK’s business strategy is focused on developing the business as the leading platform savings, investments and pensions provider in the market. For this reason, during 2016 it made a number of strategic changes in order to align its business model with its strategy.
GBP 1 billion annuity liabilities remaining through an inward reinsurance transaction.
The strength of Aegon’s proposition has historically been in the small to medium-sized employer market. The acquisition of
Savings Account (ISA) will provide an additional incentive for many people to save for retirement.
'5 for Life’ (which are written by Aegon Ireland) and the product guarantees within Secure Retirement Income, Investment Control and Income for Life (which are reinsured to Aegon Ireland PLC), all Aegon UK contracts with investment guarantees are written in the policyholder-owned fund (otherwise called the ‘with-profits fund’).
Management of the with-profits fund Aegon UK's with-profits fund has an investment strategy that reflects the nature of the underlying guarantees. The fund can invest in a variety of different asset types. The main categories are UK and overseas equities, UK and overseas-fixed interest securities, UK property and cash. The with-profits fund has a target range for the percentage of its assets that are invested in equities, and this range may be varied. There is a policy of holding an appropriate mix of asset classes to reduce risk within these target ranges.
Europe use the Standard Formula to calculate the solvency position of their insurance activities. The activities in Turkey and, prior to its disposal, in Ukraine have been included through
Liberbank, S.A.. Aegon Administracion y Servicos A.I.E., a separate legal entity, provides administration and operations services to all
(DGSFP), the regulatory authority for the Spanish insurance industry. Spanish regulations incorporate all requirements from the relevant EU directives.
Aegon N.V.'s worldwide risk management strategies, investment exposure to any single counterparty is limited by an internal framework that reflects the limits set by the management of the company. This applies for both asset classes (equities, bonds and cash) and across all investments.
Net income Net loss in 2015 amounted to USD 33 million. Net losses increased in 2015 compared with USD 21 million in 2014 mainly due to other charges of USD 68 million, that were primarily the result of a more detailed approach to modeled reinsurance premiums. The charges in 2015 were partially offset by a fair value gain relating to hedging results, gains on investments and the strong performance of Asia's high net worth business out of Hong Kong and Singapore.
Underlying earnings before tax In Asia, underlying earnings before tax increased to USD 23 million in 2015 compared with a loss of USD 23 million in 2014. �� Underlying earnings before tax from the high net worth businesses in Hong Kong and Singapore increased to
Sony Life Planner channel (operated by Sony Life), and the bank distribution channel. By December 2016, Aegon Sony Life had entered into distribution partnerships with 2 mega banks, 25 regional banks and Japan Post Bank, in addition to Sony
Regulation and supervision China: Aegon THTF The insurance industry in China is regulated by the China
(IIA). The new IIA will take over the regulation of insurance companies and insurance intermediaries from the three
in the Japan, the Office of Insurance Commission in Thailand, the Australian Securities & Investments Commission in Australia, and the Confederation of Insurance Brokers in Hong Kong.
Asia Solvency II requirements became effective for Aegon Group as of January 1, 2016. Aegon’s Asian activities are included in the
equity funds may be invested in mutual funds, stocks, money market funds and bond repurchases in order to enhance investment returns.
In reinsuring minimum variable annuity guarantees, SARe accepts certain market and policyholder behavior risks. SARe covers payments under the guarantees to the extent that the benefits to the policyholder exceed the variable annuity account value.
TLB entered into a reinsurance treaty with Munich Re to provide further protection for the local solvency position in Singapore.
The increase in operating expenses in 2015 compared with 2014 was mainly the result of growth of the business, currency movements and project-related expenses.
Board to provide information on model integrity and recommendations for further strengthening of models.
Company's income. Assumptions used to price products and establish technical liabilities are reviewed on a regular basis.
Please note that numbers and ratios related to Solvency II as disclosed in this section represent Aegon’s estimates, are not final until filed with the regulator and subject to supervisory review. Solvency II capital ratios are also still subject to final interpretations of Solvency II regulations including the assumptions underlying Aegon’s factor for the loss absorbing capacity of deferred taxes in the Netherlands. New guidance from the Dutch Central Bank issued in February 2017 is under review.
The Solvency II capital ratios of the Group and Aegon the
The frequent monitoring of actual and forecast capitalization levels of both the Aegon Group and of its underlying businesses is an important element in Aegon’s capital framework in order to actively steer and manage towards maintaining adequate capitalization levels. Aegon’s capital framework is based on several capital management zones in which escalating management actions are called for in a timely manner to ensure there is always adequate capitalization of both the Aegon Group and its operating units.
United States. The combined RBC ratio utilizes the NAIC RBC ratio excluding affiliated notes and taking into account excess or deficient amounts related to offshore life affiliates.
2 Including Aegon Bank. 3 Please note, this reflects Aegon’s estimated Capitalization levels.
When applying the eligibility restrictions, Aegon’s determines its tiering limits based on: �� EEA entities represent the part of the group covered by the
In managing the use of financial and non-financial leverage throughout the group, Aegon has implemented a Leverage Use
The captives are utilized for a number of purposes that may include: �� Financing term life insurance (subject to Regulation XXX
insurance supervision continues to be on the supervision of individual EU insurance and reinsurance undertakings. In addition, group supervision remains supplementary to the supervision of individual insurance and reinsurance undertakings, and group supervision encompasses more extensive requirements than supplementary supervision under the EU Insurance
RBC Company Action Level (CAL) as the SCR equivalent. The RBC
designation, G-SIIs are required to develop a liquidity risk management plan, a systemic risk management plan, and an ex ante recovery plan. In accordance with these requirements,
Committee meetings. Additional sessions were held with internal and external auditors at the end of Audit Committee meetings without members of the Executive Board present.
The Audit Committee received detailed written and verbal reports from the external auditors on these matters. The Audit
Committee are to advise the Supervisory Board and prepare decisions to be taken by the Board. The Committee is designated to safeguard sound remuneration policies and practices within the Aegon Group by overseeing the development and execution of these policies and practices. This includes: �� Reviewing the Aegon Group Global Remuneration Framework and making recommendations on the outcomes; �� Preparing recommendations regarding variable compensation both at the beginning and after the end of the performance year; �� Overseeing the remuneration of the Executive Board,
Acknowledgement The members of the Supervisory Board are very grateful for the work undertaken by Executive and Management Boards in pursuit of Aegon’s purpose of helping people achieve a lifetime of financial security.
Board in 2004. His current and final term will end in 2016.
October 2008. Mr. van der Veer was re-appointed as a member of the Supervisory Board during the 2016 Annual General Meeting of Shareholders and his third and final term ends in 2020. He is chairman of the Supervisory Board Audit Committee and a member of the Supervisory Board Nomination and
Netherlands and vice president of EPP. She was a member of the
Shareholders of May 20, 2016, to pay a maximum of 200%
In line with the Wbfo, Aegon wishes to disclose the total amount of variable compensation paid in relation to performance year 2016. The total amount of variable compensation paid out in 2016 was EUR 205 million. In 2016, the total annual compensation paid out to 19 people was equal to or higher than EUR 1 million. These people worked for Aegon’s Global
Under the current policy, as approved by shareholders at the Annual General Meeting on May 15, 2013, members of the Supervisory Board are entitled to the following payments: Base fee for membership of the Supervisory Board EUR / year Chairman 80,000
Details on the remuneration of the Supervisory Board over the course of 2016 can be found in the Supervisory Board
This results in the allocation of EUR 317,370 and 61,889 shares for Mr. Wynaendts and EUR 248,442 and 48,448 shares for Mr. Button; �� 80% of base salary if the pre-determined performance targets are met. This results in the allocation of
Personal objectives Individual basket of strategic and personal objectives related to Aegon’s strategy
(downward) modifications are needed. For this purpose, quantitative and qualitative measures at group, regional unit and individual level are taken into account, such as: �� Breaches of laws and regulations; �� Breaches of internal risk policies (including compliance); �� Significant deficiencies or material weaknesses relating to the Sarbanes-Oxley Act; and �� Reputation damage due to risk events.
The arrangements with the members of the Executive Board include retirement provisions that allow benefits to be taken at the end of the term. The retirement arrangements stem from pre executive board membership. Details are not disclosed due to the individual nature of such arrangement.
Both Executive Board members have an Engagement Agreement with Aegon N.V., rather than a contract of employment. Until his termination date, Mr. Button continued to be employed by
Vesting of the Shares), a retention (holding) period of a further three years is applicable before they are at the disposal of the
Code II.3.3 The Dutch Corporate Governance Code recommends that a member of the Executive Board should not take part in discussions or decision-making related to a subject or transaction in which he or she has a conflict of interest.
Items that will not be reclassified to profit or loss: Changes in revaluation reserve real estate held for own use 8 13 9
At January 1, 2014 (as previously stated) 8,701 8,361 3,023 (706) (1,778) 5,015 22,616 10 22,626
As Aegon intends to defer the application of IFRS 9 until 2021, the full impact of the standard is not yet clear, however an initial impact assessment resulted in the expectation that it will have a significant impact on shareholders’ equity, income and/or other comprehensive income and disclosures. An implementation project will be combined with the implementation of the new insurance contracts standard (IFRS 17) which is expected to be issued by the IASB in the first half-year of 2017.
In determining whether Aegon has power over an investment fund all facts and circumstances are considered, including the following: �� 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
Realized gains / (losses) on investments (74) 306 103 2 - 411 7 3 - - 346 (8) 338
Under the equity method of accounting, interests in joint ventures are initially recognized at cost, which includes positive goodwill arising on acquisition. Negative goodwill is recognized in the income statement on the acquisition date. If joint ventures are obtained in successive share purchases, each significant transaction is accounted for separately.
All tests performed within the Group are based on current estimates of all contractual future cash flows, including related cash flows from policyholder options and guarantees. A number of valuation methods are applied, including discounted cash flow methods, option pricing models and stochastic modeling. Aggregation levels are set either on geographical jurisdiction or at the level of portfolio of contracts that are subject to broadly similar risks and managed together as a single portfolio. Specifically, in the Netherlands the
Money market and other short-term investments – carried at fair value 7,093 - 815 - - - - 815 27 6,306
Credit risk concentrations – debt securities and money market investments 2016 Americas
Aegon does not consider the underlying investments to be impaired as of December 31, 2016.
instruments of which EUR 3,377 million (December 31, 2015: EUR 3,178 million) is held by Aegon USA, EUR 2,714 million (December 31, 2015: EUR 2,396 million) by Aegon the Netherlands and EUR 97 million (December 31, 2015 EUR 2,018 million) by Aegon UK.
The fair values of Aegon USA, Aegon the Netherlands and Aegon UK available-for-sale (AFS) ABS instruments were determined as follows: Level II Level III Total 2016 Level II Level III Total 2015
upstream client base and margin compression from price concessions and new capacity additions. While refiners have seen positive impacts from lower feedstock costs, margins have softened due to high refined product inventory levels. Commodity price pressure has been the result of strong non-OPEC supply growth, high global inventories and concerns on softening global demand.
Impairments: Other (none individually greater than EUR 25 million) (52) (32)
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives comprise: 2016 2015 2014
Clark Consulting led to a book gain of EUR 7 million (USD 8 million). Please see also note 51 Business combinations for more details.
Other income in 2014 mainly reflected the release of EUR 23 million regarding the earn out provision of Liberbank in Spain and the guarantee fund payments release of EUR 14 million related to the sale of government assets in Poland to the state, following pension legislation changes introduced in 2013.
Change in valuation of liabilities for investment contracts (104) (6,678) 1,404
Policyholder claims and benefits includes claims and benefits in excess of account value for products for which deposit accounting is applied and the change in valuation of liabilities for insurance and investment contracts. The lines Change in valuation of liabilities for insurance contracts and Change in valuation of liabilities for investment contracts reflect changes in technical provisions resulting from fair value changes on for account of policyholder financial assets included in note 10 Results from financial transactions of
Average share price used for grant in EUR 3) 4.727 3.126 4.917 6.739 6.106 5.128
These profits were taxed in the past against high historic tax rates and are now released from OCI to the income statement against a lower statutory tax rate. The difference causes a negative impact in changes in tax rate/base.
Movement in foreign currency translation and net foreign investment hedging reserve (39) (52) (50)
Interim dividend 2014 The interim dividend 2014 was paid in cash or stock at the election of the shareholder. Approximately 55% of holders of common shares elected to receive the cash dividend. The remaining 45% have opted for stock dividend. The cash dividend amounted to
The weighted effective interest rate on short-term deposits was 0.17% negative (2015: 0.21% positive) and these deposits have an average maturity of 23 days (2015: 33 days).
Total net cash flows from operating activities increased by EUR 2,405 million to a EUR 3,319 million inflow (2015: EUR 914 million inflow). The increase is mainly driven by higher inflows from insurance and investment liabilities for account of policyholders and an increase in changes in other liabilities. These cash inflows are partly offset by a decrease in results from financial transactions.
The major type of assets included in the assets held for sale comprise of the reinsurance asset linked to the sale of Aegon UK’s annuity portfolio, previously reported in the United Kingdom segment. The liabilities included in the liabilities held for sale are the insurance liabilities related to this portfolio. For details related to the sale of the UK annuity portfolio, refer to note 51 Business combinations.
2016 mainly due to the unwind of mutually offsetting derivatives and changes in interest rates and other market movements during the year. See note 47 Fair value for details on fair value measurement of derivatives.
Such restrictions can affect the ability of these associates to transfer funds in the form of cash dividends, or repayment of loans or advances, and therefore, there can be no assurance that these restrictions will not become a limitation in the future. There are no unrecognized shares of losses in associates. The financial statements of the principal associates have the same reporting date as the
The following table provides information on the liabilities for guarantees for minimum benefits that are included in the valuation of the host contracts: GMDB 1) GMIB 2) Total 4) GMDB 1) GMIB 2) Total 4)
EUR 750 million Conditional Pass-Through Covered Bond 1), 6) 0.267% Annual 2015 / 20 747 747
Transamerica Corporation. The Board of Managers has the full power and discretion to administer the plan and to apply all of its provisions, including such responsibilities as, but not limited to, developing the investment policy and managing assets for the plan, maintaining required funding levels for the plan, deciding questions related to eligibility and benefit amounts, resolving disputes that may arise from plan participants and for complying with the plan provisions, and legal requirements related to the plan and its operation. The benefits are based on years of service and the employee’s eligible annual compensation. The plans provide benefits based on a traditional final average formula or a cash balance formula (which defines the accrued benefit in terms of a stated account balance), depending on the age and service of the plan participant. The defined benefit plans were unfunded by EUR 742 million at
The contributions to the retirement benefit plan of Aegon Nederland are paid by both the employees and the employer, with the employer contribution being variable. The benefits covered are retirement benefits, disability, death and survivor pension and are based on an average wage system. The defined benefit plans were unfunded by EUR 3,121 million at December 31, 2016. (2015: EUR 2,683 million). The defined benefit plans are largely backed by investment, although these assets do not qualify as ‘plan assets’ as defined by IFRS. The average remaining duration of the defined benefits obligation is 19.7 years (2015: 18.6 years).
Deferred corporate income tax assets are recognized for tax losses carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. For an amount of gross EUR 505 million; tax EUR 90 million (2015: gross
EUR 294 million; tax EUR 59 million) the realization of the deferred tax asset is dependent on the projection of future taxable profits from existing business in excess of the profits arising from the reversal of existing taxable temporary differences.
The carrying amounts disclosed reasonably approximate the fair values at year end, given the predominantly current nature of the other liabilities.
Gross financial leverage ratio 29.8% 28.4% 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 28 million (2015: EUR nil million).
Aegon N.V. is subject to legal restrictions on the amount of dividends it can pay to its shareholders. Under Dutch law, the amount that is available to pay dividends consists of total shareholders’ equity less the issued and outstanding capital and less the reserves required by law. The revaluation account and legal reserves, foreign currency translation reserve and other, cannot be freely distributed. In case of negative balances for individual reserves legally to be retained, no distributions can be made out of retained earnings to the level of these negative amounts. Total distributable reserves under Dutch law amounted to EUR 11,996 million at December 31, 2016 (2015: EUR 12,431 million).
Aegon employs an oversight structure over valuation of financial instruments that includes appropriate segregation of duties.
Liabilities carried at fair value Investment contracts for account of policyholders 2) - 42,627 176 42,803
3 Total gains / (losses) for the period during which the financial instrument was in Level III.
Borrowings – held at amortized cost 12,543 2,138 31 10,766 12,935
Aegon uses a discounted cash flow method including yield curves such as deposit rates, floating rates and 3-month swap rates. In addition, Aegon includes own credit spread based on Aegon’s credit default swap curve.
Transamerica Corporation at December 31, 2016 amounted to EUR 3,563 million (2015: EUR 3,467 million). As of that date no amounts had been drawn, or were due under letter of credit facilities. The guarantees partly related to debt amounted to
Insurance companies are routinely subject to litigation, investigation and governmental review concerning transparency and adequacy of disclosure, particularly regarding product fees and costs, including initial costs, ongoing costs, and costs due on policy surrender as well as changes to costs over time; employment or distribution relationships; operational controls and processes; environmental matters; competition and antitrust matters; data privacy; information security; intellectual property; and anti-money laundering, anti-bribery and economic sanctions compliance.
The claim challenges a variety of elements of these products, on multiple legal grounds, including allegations made previously. This claim is being vigorously defended. At this time, in the absence of a class action proceeding mechanism to establish collective damages and due to the highly individualized nature of the underlying policies, Aegon is unable to estimate the range or potential maximum liability. There can be no assurances that these matters, in the aggregate, will not ultimately result in a material adverse effect on
The purchase of the Cofunds Ltd business is done through a sale and purchase agreement to acquire all the shares and platform assets. On January 1, 2017 Aegon completed the acquisition of Cofunds, following regulatory approval.
The legally required list of participations as set forth in articles 379 and 414 of Book 2 of the Dutch Civil Code has been registered with the Trade Register in The Hague. Aegon N.V. has issued a statement of liability as meant in article 403 of Book 2 of the Dutch Civil
Europe The Netherlands �� AMVEST Vastgoed B.V., Utrecht (50%), property management and development.
Spain & Portugal �� Aegon Santander Generales Seguros y Reaseguros, S.A., Madrid (Spain), (51%); �� Aegon Santander Portugal Vida – Companhia de Seguros de Vida S.A., Lisbon (Portugal), (51%); �� Aegon Santander Portugal Não Vida – Companhia de Seguros S.A., Lisbon (Portugal), (51%); �� Aegon Santander Vida Seguros y Reaseguros, S.A., Madrid (Spain), (51%); �� Liberbank Vida y Pensiones, Seguros y Reaseguros, S.A., Oviedo (Spain), (50%).
Remuneration of members of the Executive Board The information below reflects the compensation and various related expenses for members of the Executive Board. Mr. Button stepped down as CFO and member of Aegon’s Executive Board with effect from December 1, 2016. Amounts and numbers are disclosed for the period Mr. Button has been part of the Executive Board and are reflective of his time with Aegon till December 1, 2016.
Mr. Nooitgedagt was awarded EUR 434 variable compensation for the period he served as a member of the Executive Board in 2013.
11 Other assets Other assets include derivatives with positive fair values of EUR 135 million (2015: EUR 106 million).
Coupons and premium on convertible core capital securities and coupon on perpetual securities, net of tax - - - - - - (139) - - (139)
Furthermore Aegon repurchased 17,324,960 common shares B for EUR 0.11 each, representing a total amount of EUR 2 million.
until March 4, 2021. 3 The coupon of the EUR 114 million bonds was originally set at 8% until June 8, 2005. Subsequently, the coupon has been reset at 4.156% until 2015 and 1.506% until 2025.
22 Proposal for profit appropriation At the Annual General Meeting of Shareholders on May 19, 2017, the Executive Board will, absent unforeseen circumstances, propose a final dividend for 2016 of EUR 0.13 per common share and EUR 0.00325 per common share B. The final dividend will be paid in cash or stock at the election of the shareholder. The value of the stock dividend will be approximately equal to the cash dividend.
During 2016, the Company continued a multi-year review of their actuarial models with continued focus on those considered medium and high risk. These model updates in combination with the Company’s actuarial and economic assumptions update resulted in certain charges being recorded for the year as explained in Note 3 ‘Critical accounting estimates and judgment in applying accounting policies’.
II and level III as included in Note 47 ‘Fair value’. Those investments have a higher potential risk to be affected by error or management bias. Therefore these areas are considered a key matter for our audit. Our focus considered both the positions that are presented at fair value on the balance sheet and those positions carried at amortized cost on the balance sheet but for which fair value is required to be disclosed.
Management is responsible for the preparation of the other information, including the directors’ report and the other information pursuant to Part 9 Book 2 of the Dutch Civil Code.
Responsibilities for the financial statements and the audit Responsibilities of management and the supervisory board for the financial statements Management is responsible for: �� the preparation and fair presentation of the financial statements in accordance with IFRS-EU and with Part 9 of Book 2 of the Dutch
Our responsibilities for the audit of the financial statements Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence to provide a basis for our opinion. Our audit opinion aims to provide reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assurance is a high but not absolute level of assurance which makes it possible that we may not detect all misstatements. Misstatements may arise due to fraud or error. They are considered to be material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
On May 22, 2014, and with effect of May 21, 2014, Vereniging Aegon exercised its options rights to purchase in aggregate 2,320,280 common shares B at fair value of a common share B (being 1/40th of the market value of a common share in the capital of the
Vereniging Aegon has an Executive Committee consisting of seven members, six of whom are not, nor have ever been, related to Aegon, including the Chairman and the Vice Chairman. The other member is also a member of the Executive Board of Aegon N.V. Resolutions of the Executive Committee, other than regarding the amendment of the Articles of Association of Vereniging Aegon, are made with an absolute majority of the votes. When a vote in the Executive Committee results in a tie, the General Meeting of Members has the deciding vote. Regarding the amendment of the Articles of Association of Vereniging Aegon, a special procedure requires a unanimous proposal from the Executive Committee, thereby including the consent of the representatives of Aegon N.V. at the Executive
Central & Eastern Europe and Spain & Portugal. Aegon spent EUR 0.2 billion on capital contributions.
Capital contributions of EUR 0.1 billion were paid to Aegon’s businesses.
Aegon UK also has six UK resident customers, each of whom has one active Individual Personal Pension with the same employer.
Personal Pension #5 has a current value of GBP 38,662.67as at January 23, 2017, and no further contributions are being received into this policy. Individual Personal Pension #6 has a current value of GBP 7,312.46 as at January 23, 2017, and no further contributions are being received into this policy. The related annual net profit arising from these six contracts, which is difficult to calculate with precision, is estimated to be no greater than GBP 23,326.55.
Aegon Levensverzekering N.V. has one Dutch resident customer for whom two active individual personal pension policies and one individual life investment linked insurance policy are held. This person is on the Foreign Sanctions Evaders List (‘FSE List’) with Regard to Syria and is also listed on the Specially Designated Nationals and Blocked Persons List. The FSE List includes persons sanctioned pursuant to E.O. 13608 for engaging in conduct relating to the evasion of U.S. economic and financial sanctions with respect to Iran or
Board yearly. If Aegon remains a G-SII, it may be required as per January 2019, to maintain additional capital in the form of Higher Loss
August 2016, Fitch downgraded Aegon N.V.'s holding company and operating company ratings (Aegon Bank N.V. was affirmed) and changed the outlook from negative to stable. In February 2017, S&P Global affirmed Aegon N.V.’s holding company and operating company ratings, while revising the outlook from stable to negative. A downgrade or potential downgrade, including changes in outlook, may result in higher funding costs and/or affect the availability of funding in the capital markets. In addition, a downgrade may adversely affect relationships with broker-dealers, banks, agents, wholesalers and other distributors of Aegon’s products and services, which may negatively impact new sales and adversely affect Aegon’s ability to compete. A downgrade of Aegon’s credit ratings may also further affect our liquidity position through increased collateral requirements for our hedging and derivative transactions, and may affect our ability to obtain reinsurance contracts at reasonable prices or at all. This would have a materially adverse effect on Aegon’s businesses, results of operations and financial condition.
requirements are finalized, which is planned for January 2019. The development of the BCR is the first step and the development of the
The measures allow them to commence proceedings which may lead to (a) the transfer of all or part of the business of an ailing insurance company to a private sector purchaser, (b) the transfer of all or part of the business of an ailing insurance company to a ‘bridge entity’, (c) the transfer of the shares in an ailing insurance company to a private sector purchaser or a ‘bridge entity’,
The simplified capital structure included an amendment to the 1983 Amended Merger Agreement between Aegon N.V. and
Since Aegon’s common shares listed on Euronext Amsterdam are quoted in euros and Aegon’s common shares listed on NYSE New
Of which Aegon’s share of employees in joint ventures and associates 5,944 7,499 4,429
Asset-Backed Securities (ABS) are securities whose value and income payments are derived from and collateralized (or ‘backed’)
Interest rate risk is a market risk, namely the risk that the value of a financial instrument will fluctuate due to changes in market interest rates.
Aegon. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Aegon undertakes no obligation to publicly update or revise any forward-looking statements.
Aegon’s products; �� Changes in accounting regulations and policies or a change by
Commission, including the Annual Report. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, Aegon expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Aegon’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.