Aegon Ltd. is an exempted company with liability limited by shares organized under the laws of Bermuda and registered with the Bermuda Registrar of Companies under number 202302830\u00a0and recorded in the Commercial Register of The Hague registered under number 27076669 and with its registered address at Canon\u2019s Court, 22 Victoria Street, Hamilton HM 12, Bermuda. As of October 1, 2023 the Bermuda Monetary Authority has been Aegon's group supervisor.\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Aegon Ltd. has its headquarters in the Netherlands at Aegonplein 50, 2591 TV, The Hague. As Aegon Ltd. currently qualifies as a non-resident company under Dutch law, certain Dutch law provisions remain applicable to it, including certain provisions of title 9 Book 2 of the Dutch Civil Code regarding the preparation and publication of its annual accounts.
Aegon Ltd. serves as the holding company for the Aegon Group and has listings of its common shares on Euronext Amsterdam and on the New York Stock Exchange (NYSE).\u00a0
Aegon Ltd. (or \"the Company\") and its subsidiaries (\"Aegon\" or \"the Group\") have life insurance and pensions operations and\u00a0are also active in savings and asset management operations, accident and health insurance and general insurance. Aegon operates fully\u00a0owned businesses in the United States, the United Kingdom and in asset management, and Aegon also\u00a0operates partnerships in Spain & Portugal, China, and Brazil, and a strategic partnership in the Netherlands. The\u00a0Group\u00a0employs around 15,600 people worldwide (2023: around 15,700).
Please note that the designation is uniformly Aegon Ltd. even if it was Aegon N.V. before October 1, 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1083m1059p": { "value": "Aegon Ltd. is an exempted company with liability limited by shares", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5689m1063p": { "value": "Canon\u2019s Court, 22 Victoria Street, Hamilton HM 12, Bermuda", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f10158m1064p": { "value": "Bermuda", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f9681m1060p": { "value": "Bermuda", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1005m1003p": { "value": "Aegon Ltd.", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5798m1012p": { "value": "Aegonplein 50, 2591 TV, The Hague", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f8034m1061p": { "value": "Aegon Ltd. ", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1089m1065p": { "value": "Aegon Ltd. (or \"the Company\") and its subsidiaries (\"Aegon\" or \"the Group\") have life insurance and pensions operations and\u00a0are also active in savings and asset management operations, accident and health insurance and general insurance. Aegon operates fully\u00a0owned businesses in the United States, the United Kingdom and in asset management, and Aegon also\u00a0operates partnerships in Spain & Portugal, China, and Brazil, and a strategic partnership in the Netherlands. The\u00a0Group\u00a0employs around 15,600 people worldwide (2023: around 15,700).", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f8035m1062p": { "value": "Aegon Ltd.", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5782m1010p": { "value": "\nThe consolidated financial statements include the financial information of Aegon Ltd. and its subsidiaries. Subsidiaries (including consolidated structured entities) are entities over which Aegon has control.
The subsidiary\u2019s assets, liabilities, contingent liabilities, and non-controlling interests are measured at fair value on the acquisition date (unless specific recognition or measurement exceptions apply under IFRS 3) and are subsequently accounted for in accordance with the Group\u2019s accounting policies, which is consistent with IFRS. Intra-group transactions, including Aegon Ltd. shares held by subsidiaries, which are recognized as treasury shares in equity, are eliminated. Intra-group losses may indicate an impairment that requires \u00a0recognition in the consolidated financial statements. Non-controlling interests are initially stated at their share in the fair value of the net assets on the acquisition date and subsequently adjusted for the non-controlling share in changes in the subsidiary\u2019s equity.
Subsidiaries are deconsolidated when control ceases to exist. Any difference between the net proceeds plus the fair value of any retained interest and the carrying amount of the subsidiary including non-controlling interests is recognized in the income statement.
\nInvestment funds managed by the Group in which the Group holds an interest are consolidated in the financial statements if the Group controls the investee. In assessing control, all interests held by the Group in the fund are considered, regardless of whether the financial risk related to the investment is borne by the Group or by the policyholders (unless a direct link between the policyholder and the fund can be assumed).
In determining whether Aegon has power over an investment fund all facts and circumstances are considered, including the\u00a0following:
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\u00a0voting 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).
Exposure or rights to variability of returns can be the result of, for example:
Investments where Aegon bears the risk;
Aegon's investments where policyholders bear the risk;
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).
Investment funds where Aegon acts as an agent are not consolidated due to lack of control of the funds. In particular, for\u00a0some separate accounts, the independent Board of Directors has substantive rights and therefore Aegon does not have power over these separate accounts but acts as an agent.
For limited partnerships, the assessment takes into account Aegon\u2019s legal position (i.e. limited partner or general partner) and\u00a0any substantive removal rights held by other parties. Professional judgment is applied concerning the substantiveness of the\u00a0removal rights and the magnitude of the exposure to variable returns, leading to the conclusion that Aegon controls some, but\u00a0not all, of the limited partnerships in which it participates.
Upon consolidation of an investment fund, a liability is recognized to the extent that the Group is legally obliged to buy back participations held by third parties. The liability is presented in the consolidated financial statements as investment contracts. Where no repurchase obligation exists, the participations held by third parties are presented as non-controlling interests in\u00a0equity. The assets allocated to participations held by third parties or by the Group on behalf of policyholders are presented in\u00a0the consolidated financial statements as investments.
Equity instruments issued by the Group that are held by investment funds are eliminated on consolidation. However, the\u00a0elimination is reflected in equity and not in the measurement of the related financial liabilities toward policyholders or\u00a0other third parties.
\nFor structured entities as defined in IFRS 12, the tests and indicators to assess control provided by IFRS 10 are more focused on the purpose and design of the investee (with relation to the relevant activities that most significantly affect the structured entity) and the exposure to variable returns, which for structured entities lies in interests through for example derivatives, and will not be focused on entities that are controlled by voting rights.
Structured entities that are consolidated include affiliated captive insurance companies (captives) with which Aegon enters into reinsurance agreements for risk and capital management purposes. All external financing provided to captives to support statutory reserves is presented as Borrowings to the extent that it has been funded. Letters of credit issued by third parties provided to captives to provide collateral to affiliated insurers are disclosed in the Commitments and contingencies note. These letters of credit have been provided by third parties for the benefit of the affiliated company whose liabilities are\u00a0reinsured.
Structured entities that are not consolidated include general account investments in non-affiliated structured entities that\u00a0are\u00a0used for investment purposes.
\nAegon\u2019s consolidated financial statements are presented in euros. Items included in the financial statements of individual group companies are recorded in their respective functional currency which is the currency of the primary economic environment in which each entity operates. Transactions in foreign currencies are initially recorded at the exchange rate prevailing at the date of the transaction.
\nOn consolidation, the financial statements of group entities with a foreign functional currency are translated to euros, the\u00a0currency in which the consolidated financial statements are presented. Assets and liabilities are translated at the closing rates on the reporting date. Income, expenses and capital transactions (such as dividends) are translated at average exchange rates or at the prevailing rates on the transaction date, if more appropriate. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are translated at the closing rates on the reporting date.
The resulting exchange differences are recognized in the \"foreign currency translation reserve,\" which is part of shareholders\u2019 equity. On disposal of a foreign entity the related cumulative exchange differences included in the reserve are recognized in\u00a0the income statement.
\nInsurance contracts are contracts under which the Group accepts a significant insurance risk \u2013 other than a financial risk \u2013 from a policyholder by agreeing to compensate the beneficiary on the occurrence of an uncertain future event by which he or she will be adversely affected. Significant insurance risk is\u00a0determined on a present-value basis, where at least one scenario with commercial substance can be identified in which the\u00a0Group has to pay significant additional benefits. For example, Aegon defines an additional benefit on death of at least 5% as significant. Instances where additional benefits are less than 5% will be considered on a case-by-case basis, taking into account all the\u00a0characteristics of the contract. Insurance contracts include products that provide policyholders with the option to take out insurance coverage at predetermined prices, provided this option is shown to have commercial substance.
Contracts that do not meet the definition of insurance contracts are accounted for as financial instruments and discussed in note 2.8 Investment contracts with discretionary participating features.
\nAt inception, the following components are separated from an insurance contract and accounted for as if they were standalone financial instruments:
Embedded derivatives whose economic characteristics and risks are not closely related to those of the host contract, and\u00a0whose terms would not meet the definition of an insurance contract as a standalone instrument; and
Investment components (i.e. amounts that an insurance contract requires Aegon to repay to a policyholder, even if the\u00a0insured event does not occur) that are distinct. In other words, investment components that:
Do not meet the definition of an investment contract with discretionary participation features;
Are not highly interrelated with the insurance component; and
For which contracts with equivalent terms are sold, or could be sold, separately in the same market or jurisdiction.
Promises to transfer to a policyholder distinct goods or services other than insurance contract services, are also separated from the host contract and accounted for as a service contract.
Aegon has not identified any components of the insurance contracts recognized at the balance sheet date that require separation when publishing these financial statements.
\nInsurance contracts are grouped together for measurement and income recognition purposes. The groups are established at\u00a0initial recognition and are not reassessed subsequently.\u00a0
\nAegon classifies contracts as belonging to one portfolio, when they are subject to similar risks and are managed together.
When identifying similar risks, Aegon considers all insurance and financial risks that are transferred from the policyholder
to\u00a0the Group. This does not include lapse risk or expense risk, as these are not risks that a policyholder transfers to an insurer. Generally, contracts in the same product line are included within the same portfolio if they are managed together, and contracts in different product lines with dissimilar risks are included in different portfolios.\u00a0
To be grouped together, contracts must be managed together from the perspective of either the management of Aegon Ltd. or the management of its operating segments. Information that is used to assess how risks are managed includes Aegon\u2019s internal management reporting, as well as asset-liability management and asset allocation strategies.
\nContracts within a portfolio are segregated into:
Groups of insurance contracts that are onerous at initial recognition.\u00a0
Groups of insurance contracts that are not onerous at initial recognition, subdivided into:
\nGroups of insurance contracts that have no significant possibility of becoming onerous subsequently; and
A group of remaining contracts in the portfolio, if any.
Aegon uses two approaches to identify groups of contracts. The first approach consists of a bottom-up assessment, in which contracts are grouped together on a contract-by-contract basis by considering the expected profitability of each contract. Alternatively, the grouping assessment can be completed at a higher level of aggregation if, based on reasonable and supportable information, Aegon concludes that a set of contracts will, by definition, all be in the same group.\u00a0
Both approaches involve qualitative factors, quantitative factors, or a combination of both; for example, product pricing, assumption setting reviews, reserving, key performance indicators (such as the market-consistent value of the new business
and\u00a0expected loss ratios) and asset liability management and hedging strategies.
In assessing whether a profitable group of contracts could subsequently become onerous, Aegon considers the size of\u00a0the estimated profit at inception and its sensitivity to changes in the underlying assumptions. Typically, Aegon expects that\u00a0any insurance contract may become lossmaking if the insured event occurs.
If contracts within a portfolio would fall into different groups only because law or regulation specifically constrains Aegon\u2019s practical ability to set a different price or level of benefits for policyholders with different characteristics, the contracts are included in the same group.
\nAegon follows a quarterly reporting frequency on a locked-in period-to-date basis, as opposed to a year-to-date basis, and\u00a0therefore groups contracts into quarterly cohorts. New contracts issued in the same quarter and belonging to the same group will be measured together. After the quarter end, the cohort is closed, and the cohort will be treated as \"in force\" in the subsequent quarterly reporting periods.
\nA group of insurance contracts is recognized from the earliest of the following dates: the beginning of the coverage period, the\u00a0date when the first payment from a policyholder in the group of insurance contracts becomes due, and the date when the\u00a0group of insurance contracts becomes onerous.
\nInsurance acquisition cash flows arise from selling, underwriting, or starting a group of insurance contracts. These cash flows comprise not only the incremental costs of originating insurance contracts but also other (in)direct costs and include cash flows relating to both successful and unsuccessful acquisition efforts such as commissions and underwriting expenses that are directly attributable to the portfolio. Insurance revenue related to insurance acquisition cash flows is recognized on a pure passage of\u00a0time basis.
\nFor presentation and analysis purposes, Aegon distinguishes between life and non-life insurance contracts. Life insurance contracts comprise insurance contracts for which the primary insured risk is life contingent, as well as long-term-care insurance products in the Americas. Non-life insurance contracts include fire insurance, motor insurance, general liability insurance, and disability and sickness insurance.
For measurement and income recognition purposes, Aegon distinguishes between insurance contracts with and without direct participating features. Contracts are classified at the initial recognition date and not subsequently reassessed. Aegon\u2019s\u00a0non-life business consists entirely of insurance contracts without direct participating features, while Aegon\u2019s life insurance business includes both types of insurance contracts.
While the initial measurement of both types of insurance contracts is the same, the subsequent accounting differs. The\u00a0Variable Fee Approach is applied to life insurance contracts with direct participating features. Other life and non-life insurance contracts are accounted for under the General Measurement Model, unless Aegon has elected to apply the\u00a0Premium Allocation Approach to groups of these contracts.
\nInsurance contracts with direct participating features are defined as life insurance contracts for which, at inception:
The contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items;
Aegon expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items, and\u00a0
Aegon expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items.
In determining whether a pool of underlying items has been clearly identified to the policyholder, Aegon considers all contractual terms and conditions as well as other policyholder communications. Aegon does not need to hold the identified pool of underlying items for a product to qualify as an insurance contract with direct participating features, nor does the existence of Aegon\u2019s discretion to vary the amounts paid to the policyholder preclude qualification. However, the link between policyholder benefits and underlying items must be enforceable and Aegon must not have the ability to change the underlying items with retrospective effect.
Once the presence of a clearly identified pool of underlying items has been established, Aegon uses a methodology for product classification that builds on a two-step approach with an initial assessment based on product characteristics, followed by a quantitative assessment where the former is not conclusive.
The initial assessment based on product characteristics is performed using multiple qualitative indicators. For example, Aegon considers whether a contract includes substantial contractual profit-sharing rates and the degree to which these can subsequently be reset. It also considers the extent to which asset management fees and other charges are commensurate with the services provided and in line with market terms, and whether a product guarantees a minimum return on investment.
If the qualitative step is not conclusive on its own, the product undergoes quantitative analysis. Different calculation methods are used, depending on the product characteristics and the market conditions at the inception of the contract.\u00a0
\nThe policyholder\u2019s share in the fair value returns is assessed by comparing the expected total return on the underlying items, net of the asset management fees, with the expected payments to the policyholder that are based on those underlying items. Variable fees and charges that cover multiple services are split into an insurance component and investment management component, with only the latter being deducted from total returns. As a critical judgment, when\u00a0the policyholder's share in the fair value returns is within a range between 50%-70%, Aegon applies judgment when\u00a0considering qualitative and quantitative factors in product classification.
The assessment of the variability in policyholder benefits often requires the use of probability-weighted models, factoring\u00a0all scenarios where returns are impacted by the allocation of clearly identifiable assets, variable fees and guarantees. The determination of one scenario where there is no variability does not automatically disqualify a product for\u00a0the\u00a0variable fee approach but is assessed together with the scenarios in which the guarantee is not in-the-money at\u00a0the\u00a0expected termination date of the contract.
Examples of insurance contracts with direct participating features include unit-linked contracts issued by Aegon UK and Aegon Spain, and variable annuities issued in the Americas.
\nThough for insurance contracts without direct participating features there is no link between underlying assets and the insurance contract, there are products where Aegon provides investment-return services. A product is considered to provide an investment-return service if, and only if, the following apply:
The contract contains a non-distinct investment component or the policyholder has a right to withdraw an amount under the\u00a0policy;
Aegon expects that this amount will include an investment return; and\u00a0
Aegon expects to perform investment activity to generate that investment return.
Products with investment-return services include indexed universal life, fixed deferred annuities, fixed indexed annuities and registered index linked annuities.
Insurance contracts without direct participating features include all non-life insurance products issued by Aegon, as well as term insurance, whole life, fixed annuities, long term care insurance contracts, and US-style universal life products issued in the Americas and Asia.
\nOn initial recognition, Aegon measures a group of contracts at a risk-adjusted, current, and probability-weighted estimate of the present value of the future cash flows (\"fulfillment cash flows\") plus or minus the unearned profit on the group of contracts (\"contractual service margin\").\u00a0
\nThe fulfillment cash flows reflect Aegon\u2019s view of the current condition at the reporting date, consistent with observable market prices and considering all contractual terms and conditions with commercial substance that are within the contract boundary. Future changes in legislation that would change or discharge a present obligation or create new obligations under existing contracts are only considered when the legislation is substantively enacted.
Fulfillment cash flows also include discretional cash flows, for instance for US universal life type products, that are partially linked to the performance of underlying assets based on the crediting policy that is set by the discretion of the company.\u00a0 Aegon interprets that, in most cases, the stochastic technique is needed to capture the non-linear characteristic of cash flows, especially when there is material financial guarantee or dynamic lapse behavior associated with the discretional cash flows. Aegon uses the stochastic technique to apply risk-neutral scenarios that are calibrated to replicate the market price of market variables such as equity or interest rates. Such a calibration ensures that the probability-weighted average of payoffs on different scenarios discounted at risk-free rates will be equal to the market price of financial security with the same payoffs.
The methods used to calculate the fulfillment cash flows and the process to estimate the inputs to those methods are\u00a0discussed in note 29.3 Critical judgements and estimates.
\nThe contractual service margin represents the unearned profit Aegon will recognize as it provides insurance contract services in the future.\u00a0For onerous insurance contracts, the calculation results in a loss that is recognized in the income statement immediately and for which a corresponding loss component is established as part of the insurance liabilities.
\nCash flows are within the boundary of an insurance contract if they arise from rights and obligations that exist during the\u00a0period in which Aegon can either compel the policyholder to pay premiums or has a substantive obligation to provide insurance contract services to the policyholder.
Examples of cash flows within the contract boundary by Aegon\u2019s interpretation are premiums and related cash flows, claim payments (including reported, incurred and all future claims for which Aegon has\u00a0 substantive obligation), payments to policyholders such as payments that vary depending on underlying items or resulting from options and guarantees, claim handling costs, policy administration and maintenance cost, cost for performing investment activities, investment return services or investment related services and allocation of fixed and variable overheads directly attributable to fulfilling insurance contracts. Aegon interprets directly attributable overhead expenses consistent with the principle of Solvency II regarding insurance service obligation. Premiums receivable from the intermediary are included as future cash flows within the contract boundary.
In determining whether a contract can be repriced, all insurance and financial risks that are transferred from the policyholder to Aegon are considered. Risks that result from the contract itself, such as expense risk or lapse risk, are ignored. If Aegon provides investment-related services to insurance policyholders, the ability to reprice the fees or charges for these services to prevailing rates is also considered in setting the contract boundary.
In some jurisdictions, regulatory requirements limit Aegon\u2019s ability to fully reprice contracts on renewal and are therefore relevant when setting the contract boundary. Regulatory price caps that apply equally to existing and new policyholders do\u00a0not extend the contract boundary, because they do not result in a valuable policyholder renewal option.
Some contracts that have a long contract boundary based on long-term guaranteed benefits, also include policyholder options that can be repriced. For example, the contract may allow the policyholder to take out additional insurance coverage at current market rates at the time of uptake. While the policyholder option can be repriced, Aegon cannot reprice or reassess the benefits of the entire policy. Therefore, the policyholder option is considered within the long contract boundary of the host contract, provided it can reasonably be expected to be utilized.\u00a0
Contract boundaries are based on current facts and circumstances and may therefore change over time.
\nThe carrying amount of a group of insurance contracts at the end of each reporting period is the sum of the liability for remaining coverage and the liability for incurred claims. The liability for remaining coverage comprises the fulfillment cash flows related to future service allocated to that group and the contractual service margin of the group. The liability for incurred claims comprises the fulfillment cash flows related to past service allocated to the group. Cash flows that remain subject to insurance risk after the occurrence of the insured event are included in the liability for remaining coverage.
The fulfillment cash flows are remeasured at each reporting date to reflect current estimates. The measurement of the contractual service margin differs for contracts with and without direct participating features and is described below.
Some changes in the contractual service margin are offset by changes in the fulfillment cash flows, resulting in no change in\u00a0the total carrying amount of the liability for remaining coverage. To the extent that changes in the contractual service margin and changes in the fulfillment cash flows do not offset, income or expenses are recognized.
\nThe carrying amount of the contractual service margin for a group of insurance contracts without direct participating features\u00a0at the end of each reporting period is determined by adjusting the carrying amount with the effect of new contracts added to\u00a0the group, interest accrued on the contractual service margin during the period, changes in fulfillment cash flows related to\u00a0future services (except when increases in fulfillment cash flows exceed the carrying amount of contractual service margin, causing a loss, or when decreases in fulfillment cash flows are allocated to the loss component), currency exchange differences affecting the contractual service margin, and insurance revenue recognized for services provided during the\u00a0period.
\nAegon accretes interest to the contractual service margin based on either the one-year forward rate or the one-year spot-rate, derived from the discount rate curve used to estimate the present value of future cash flows that do not vary based on the\u00a0returns on any underlying items on initial recognition of the group of contracts.\u00a0
The amount of interest is calculated on a time-weighted basis, allowing for the timing of the movements in the contractual service margin over the reporting period.
\nChanges in the fulfillment cash flows that relate to future services comprise:
Experience adjustments arising from premiums received in the period that relate to future services and related cash flows, measured at the discount rates determined on initial recognition;
Changes in estimates of the present value of future cash flows in the liability for remaining coverage (other than those that\u00a0relate to the effects of the time value of the money and changes in financial risks), measured at the discount rates determined on initial recognition;
Differences between any non-distinct investment component expected to become payable in the period and the\u00a0actual\u00a0non-distinct\u00a0investment component that becomes payable in the period;
Differences between any loan to a policyholder expected to become repayable in the period and the actual loan to a\u00a0policyholder that becomes repayable in the period; and
Changes in the risk adjustment for non-financial risk that relate to future services.
The change in fulfillment cash flows that relates to future service is calculated using discount rates derived from the discount rate curve used to determine the contractual service margin on initial recognition of the group of contracts.
\nPart of the contractual service margin of a group of contracts is recognized as insurance revenue in each period to reflect the\u00a0insurance contract services provided under the group of insurance contracts in that period. The amount of revenue is determined by allocating the contractual service margin remaining at the end of the reporting period equally to each coverage unit provided in the reporting period and expected to be provided in the future.\u00a0
The numbers of coverage units in a group of contracts is determined by considering, for each contract, the quantity of the\u00a0benefits provided and its expected coverage period. Aegon concludes that the coverage period relates to insurance coverage only for business reported under the General Model when contracts do not have investment-return service, and coverage periods relates to both insurance coverage and investment return service when contracts contain investment return service. Coverage period takes account of the expected survivorship of contracts, so it allows for expected lapses and deaths. If a contract provides coverage for more than one insured event or\u00a0if\u00a0it\u00a0provides additional investment-return services, the coverage unit reflects all material benefits.
Aegon has defined coverage units that differ per product type to best reflect a product\u2019s characteristics and the nature of the\u00a0services provided to the policyholder. Insurance services are typically depicted by a metric that is based on the maximum amount that a policyholder would receive if the insured event were to occur, such as the total benefits amount or the death benefit amount. For investment-type services, coverage units are based on the total return that Aegon expects to provide the\u00a0policyholder over the lifetime of the contract.
Aegon applies the following formula to determine the amount of contractual service margin to release in each reporting period, where:
\n\nWhere:
A = coverage units provided in the period\u00a0
B = present value of coverage units to be provided in the future
The coverage units provided in the period are determined as an average of the coverage units at the beginning and end of the\u00a0quarterly reporting period. Future coverage units are discounted using rates locked-in at the initial recognition of the group of\u00a0contracts.\u00a0
More information on the coverage units is provided in note 29.3.2.1 Weighting of coverage units.
\nAegon adjusts the fulfillment cash flows for direct participating contracts to account for changes in the obligation to pay policyholders based on the fair value of underlying items, recognizing these changes in profit or loss. The contractual service margin for each group of contracts is adjusted based on new contracts, changes in fair value related to future services (using current discount rates), risk mitigation policies, changes in the loss component, currency exchange differences and insurance revenue recognition for services provided during the period.
\nChanges in Aegon\u2019s share in the fair value of the underlying items, by definition, relates to future service and is therefore adjusted according to the contractual service margin.\u00a0 The variable fee approach requires changes in fulfillment cash flows to\u00a0be booked to\u00a0the contractual service margin if they are the result of a change in the effect of the time value of money or financial risks not arising from the underlying items. Examples include the interest accrued to projected fixed benefits and expense cash flows, and the change in the value of financial guarantees.
\nThe policy on the recognition of revenue for insurance contracts with direct participating features is the same as under the\u00a0general measurement model, except that references to \u201cinvestment-return services\u201d should be read as \u201cinvestment-related services\u201d.\u00a0Furthermore, the definition of coverage period is different for contracts with direct participating features. The coverage period reflects both insurance coverage and investment-related services. For such contracts with an accumulation and payout phase, the coverage period reflects both phases of the contract to the extent that insurance coverage and investment-related services are provided in both phases.
\nFor certain groups of contracts, Aegon has a documented risk management objective and strategy for mitigating financial risk arising from insurance contracts with participating features, using derivatives, reinsurance contracts held and other FVPL financial instruments. Risk mitigation involves the hedging of one or a combination of financial risks (e.g. interest rate, financial instrument price, currency exchange rate, index of prices or rates, inflation rate) and can cover multiple groups of contracts in\u00a0different portfolios.
For these groups of contracts, Aegon does not recognize the entire change in the amount of Aegon\u2019s share of the fair value of\u00a0the underlying items and changes in fulfillment cash flows relating to future services in the contractual service margin. Instead, the change in the hedged position is recognized as part of the insurance finance expense in the income statement or\u00a0in other comprehensive income.
Prior to the reporting period, Aegon demonstrates that an economic offset exists between the above mentioned fulfilment cash flows from insurance contracts and the risk mitigating items (i.e. the values of both are generally expected to move in opposite directions because they respond in a similar way to the changes in the risk being mitigated), and demonstrates this\u00a0is\u00a0not dominated by credit risk.
\nWhen a group of insurance contracts becomes onerous, a loss component of the liability for remaining coverage for that\u00a0group is established. Except for changes in non-financial assumptions that are fully allocated to a loss component, all\u00a0subsequent changes in the fulfillment cash flows of the liability for remaining coverage are allocated on a systematic basis\u00a0between the loss component and the remaining liability for remaining coverage. No revenue is recognized for\u00a0services allocated to the loss component, as Aegon has never received compensation from the policyholder for these.
\nAegon applies the premium allocation approach to certain groups of predominantly non-life insurance contracts. These\u00a0groups of contracts mostly include products with a coverage period of one year or less. The premium allocation approach is\u00a0only applied to contracts with a longer coverage period if the Group expects that the resulting measurement would not differ materially from the result of applying the general measurement model.\u00a0
\nContracts to which the premium allocation approach is applied are grouped together using the same principles as described in paragraph (c) above, with the following modifications:
Contracts to which the premium allocation approach is applied, are assumed not to be onerous at inception, unless facts and circumstances indicate otherwise.
Contracts to which the premium allocation approach are grouped together in annual cohorts, which is more aligned with\u00a0the\u00a0nature of the products.
Insurance acquisition cash flows that relate to some (but not all) groups of contracts to which Aegon applies the premium allocation approach are expensed when incurred, provided the coverage period does not exceed 12 months.
\nGiven the time between providing each part of the coverage and the related premium, Aegon has chosen not to adjust the\u00a0liability for the remaining coverage to reflect the time-value of money and the effect of financial risk.
Aegon recognizes the liability for incurred claims of a group of insurance contracts at the amount of the fulfillment cash flows relating to incurred claims. The fulfillment cash flows are discounted at current rates unless the cash flows are expected to\u00a0be\u00a0paid in one year or less from the date the claims are incurred.
\nReinsurance contracts held are contracts entered into by Aegon in order to receive compensation for claims arising from one or more insurance contracts issued by the group. Reinsurance contracts that do not transfer insurance risk are accounted for as financial instruments or as service contracts, depending on the nature of the agreement.
To the extent possible, the accounting model applied to reinsurance contracts held is consistent with that of the underlying insurance contracts. Differences will arise when underlying contracts have direct participating features, as the variable fee approach cannot be applied to reinsurance contracts held. Furthermore, reinsurance contracts with a coverage period exceeding 12 months may not be eligible for the premium allocation approach.
Expected reinsurance recoveries include an adjustment for the risk of non-performance by the reinsurer, which is based on Aegon\u2019s credit exposure, net of collateral, and the perceived counterparty default risk.
\nSimilarly to the analysis for insurance contracts (see note 2.4\u00a0Insurance contracts), Aegon has assessed that its reinsurance contracts held do not include components that need to be separated for accounting purposes.
\nReinsurance contracts are grouped for measurement and income recognition purposes, based on the similarity of risk, the\u00a0manner in which the contracts are managed, the expected profitability of the contracts at inception, and the period in which the contracts are issued.
When grouping reinsurance contracts, Aegon considers the type of reinsurance cover received (e.g. yearly renewable term, stop loss, or coinsurance).\u00a0
A group of reinsurance contracts can comprise a single contract, for example when the contracts are managed on an\u00a0individual treaty basis.
\nAegon applies the accounting policies disclosed in note 2.4 Insurance contract for insurance contracts without direct participating features to\u00a0measure a group of reinsurance contracts held, albeit with the following modifications:
\nAegon estimates the present value of the future cash flows of the group of reinsurance contracts held, using assumptions that are consistent with those used to measure the underlying insurance contracts. The estimate includes an adjustment for the risk of non-performance by the reinsurer. This includes the potential failure of the reinsurance counterparty due to default, disputes resulting in reduced payments, current financial conditions, and credit standing of the reinsurer, the potential for these conditions to change over time, the extent to which counterparty exposure is collateralized, treaty provisions for non-performance and special features of the regulatory environment.\u00a0
\nFor treaties with open attaching periods, the cessations within the termination window (typically 90 days) are treated as a\u00a0separate contract for accounting purposes. Cessations that take place after the termination window are treated as a new contract.
\nAegon releases the CSM in the profit or loss at the end of the reporting period based on the coverage unit of the contract which is based on the quantity of benefits and expected coverage duration. To determine the coverage units, Aegon chooses a\u00a0coverage unit metric that is proportional to the risk transferred, using maximum cover as the basis for coverage units but taking into account the number of underlying direct contracts attached. The coverage unit should reflect the expected pattern of underwriting of the underlying contracts because the level of service provided depends on the number of underlying contracts in-force.
With the exception of reinsurance finance income, all other income and expenses from a group of reinsurance contracts are\u00a0presented as a single amount.
Finance income related to reinsurance contracts held is presented separately in the income statement and OCI. They are not netted with the finance expenses related to insurance contracts issued.\u00a0\u00a0
\nAegon establishes a loss recovery component for a group of reinsurance contracts, when a change in the fulfillment cash flows that relates to future services does not adjust the contractual service margin. It reflects the income recognized in the\u00a0income statement to offsets the reinsured loss reported on the underlying insurance contracts.
The adjusted amount, and resulting income, is determined by multiplying:
The loss recognized on the group of underlying insurance contracts; and
The recovery percentage, which is the percentage of claims on the group of underlying insurance contracts that Aegon expects to recover from the reinsurance contracts held.
The calculation of the recovery percentage is based on discounted claims and recovery amounts, using current discount rates. No allowance is made for reinsurance non-performance risk, and any risk adjustment for non-financial risks is excluded from the calculation.
If an onerous group of insurance contracts is only partially reinsured, systematic and rational allocation methods are used to\u00a0determine the portion of subsequent movements in the loss component that relates to insurance contracts covered by the\u00a0group of reinsurance contracts held.
\nAegon recognizes insurance revenue as it provides services under groups of insurance contracts and under groups of contracts with discretionary participating features.
The total insurance revenue recognized over the duration of a group of contracts is equal to the amount of premiums received, adjusted for a financing effect and excluding any non-distinct investment components. For contracts with direct participating features, it includes the variable fees that Aegon expects to receive. Reinstatement premiums are included in\u00a0insurance revenue, when reinstatement is not mandatory under the terms of the contract but at the discretion of the\u00a0policyholder. Ceding commissions paid by Aegon on inward reinsurance are deducted from insurance revenue, unless they\u00a0are contingent on future claims.
The revenue recognized in the period represents the total of the changes in the liability for remaining coverage that relate to services for which the Group expects to receive compensation and includes:
The release of contractual service margin for services provided in the period;
Changes in the risk adjustments for non-financial risk that do not relate to future service, excluding amounts allocated to\u00a0the\u00a0loss component;
The claims and other insurance service expenses expected to be incurred in the period, excluding amounts allocated to\u00a0the\u00a0loss component;
Other amounts, such as experience adjustments for premium receipts that do not relate to future service and income tax that is specifically chargeable to the policyholder.
In addition, the insurance revenue recognized in the period includes an allocation of the portion of the premiums that are related to recovering insurance acquisition cash flows. The allocation is based on the passage of time, without interest accumulation. The same amount is also recognized as insurance service expenses.\u00a0Insurance service expenses arise as Aegon provides coverage and other services under issued insurance contracts and investment contracts with discretionary participating features. It comprises:
The incurred claims, excluding repayments of non-distinct investment components, and other incurred insurance service expenses;
Adjustments to the liabilities for incurred claims that do not arise from the effects of the time value of money, financial risk, and changes therein;
Amortization of insurance acquisition cash flows;
Losses on onerous contracts and the reversals of such losses; and
Impairment losses on assets for insurance acquisition cash flows and reversals of such impairment losses.
Insurance finance expenses comprise the change in the carrying amount of the group of insurance contracts or reinsurance contracts arising from the effect of the time value of money and changes in the time value of money, as well as the effect of financial risk and changes in financial risk. It also includes the changes in the measurement of group of insurance contracts that are caused by changes in the value of underlying items (excluding additions and withdrawals). \u00a0
\nFinancial risk identified by\u00a0Aegon can be one or more of the following:
Credit risk
Fluctuations in equity, real estate and capital markets
Interest rate risk
Currency exchange risk
As an example of variables not specific to a party to the contract, assumptions about inflation are considered to relate to financial risk, to the extent that they are based on an index of prices or on prices of assets with inflation-linked returns. Assumptions about inflation that are based on Aegon\u2019s own expectations of specific price changes do not relate to financial risk and are considered to be actuarial assumptions.
For contracts with discretionary participating features, Aegon uses the basis on which, at inception, it expected to determine its commitment under the contract to distinguish between the effect of changes in assumptions that relate to financial risk on that commitment and the effect of discretionary changes to that commitment (which adjust the contractual service margin).
Aegon considers, per portfolio, whether the risk adjustment for financial risks should be disaggregated in an insurance service component and an insurance finance component, taking into account the extent to which the carrying amount of the is affected by changes in interest rate and other financial risks. The changes in the risk adjustment for non-financial risk are fully attributed to insurance services.\u00a0
\nAegon disaggregates insurance finance expenses between profit or loss and other comprehensive income for insurance contracts without direct participating features issued in the United States, insurance contracts issued in Asia that are internally reinsured in the United States, certain life insurance products in Spain and reinsurance contracts held.
The amount of insurance finance expenses included in profit or loss is determined by a systematic allocation of the expected total insurance finance income and expenses over the duration of the group of contracts, using the following rates:
Discount rates determined at the date of initial recognition of the group of contracts;\u00a0
A rate that allocates the remaining revised expected finance income or expenses over the remaining duration of the group of contracts at a constant rate (expected yield approach); or
For contracts that use a crediting rate to determine amounts due to the policyholders using an allocation that is based on the amounts credited in the period and expected to be credited in future periods (projected crediting rate approach).
The expected yield approach and projected crediting rate approach are applied to designated groups of contracts for which changes in financial assumptions have a substantial effect on the amounts paid by the policyholder (\"indirect participating products\"). Indirect participating products include variable annuity products that do not qualify for the variable fee approach due to minimum guarantees. US-style universal life contracts are not classified as indirect participating products because Aegon considers policyholder benefits to be insufficiently impacted by changes in financial assumptions.\u00a0These products are measured under the general measurement model.
In the United States, Aegon has elected to apply the projected crediting rate approach to indexed universal life and fixed indexed annuities. Other indirect participating contracts, such as variable universal life and fixed annuities, are accounted for\u00a0under the expected yield approach.
\nContracts issued by the Group that do not transfer significant insurance risk but do transfer financial risk from the\u00a0policyholder to the Group are accounted for as investment contracts.
Certain investment contracts, such as with profit contracts, have participation features whereby the policyholder has the right to receive potentially significant additional benefits which are based on the performance of a specified pool of investment contracts, specific investments held by the Group or on the issuer\u2019s net result. If the Group has discretion over the amount or timing of the distribution of the returns to policyholders, the investment contract liability is measured based on the accounting principles that apply to insurance contracts with similar features.
Some unitized investment contracts provide policyholders with the option to switch between funds with and without discretionary participation features. The entire contract is accounted for as an investment contract with discretionary participation features if there is evidence of actual switching resulting in discretionary participation benefits that are a\u00a0significant part of the total contractual benefits.
Investment contracts without discretionary participation features are considered and accounted for as financial liabilities.
\nFinancial assets are recognized when Aegon becomes a party to the contractual provisions of the instrument.\u00a0Regular way purchase or sale of financial assets is recognized using trade date accounting.
Financial assets are classified for accounting purposes depending on the cash flow characteristics and the business model under which they were purchased.\u00a0
The Group determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective. The Group\u2019s business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios\u00a0and is based on observable factors, such as:\u00a0
How the performance of the business model and the financial assets held within that business model are evaluated and reported to the Group\u2019s 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\u2019s assessment.
In making the assessment of the contractual cash flows, Aegon considers whether they are consistent with a basic lending arrangement i.e. interest includes only consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is consistent with a basic lending arrangement. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.
Aegon presents its financial assets as Investments, Derivatives or Receivables and other assets in its Statement of Financial Position.
\nThe Group classifies debt instruments at fair value through profit and loss (FVPL) mandatorily if the business model is not to\u00a0hold the instrument to collect contractual cash flows (or hold to collect and sell the asset) or if the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, or contractual cash flows are\u00a0not solely payments of principal and interest (SPPI). Examples of assets that fail the SPPI test in Aegon\u2019s portfolio are investments in funds that are classified as debt and investments in tranches of contractually linked instruments where the\u00a0credit risk of the tranche is greater than the underlying portfolio\u2019s credit risk.
Within its European insurance entities Aegon holds investments in debt instruments which would not be mandatorily measured at FVPL, however they are designated at FVPL to minimize accounting mismatches with the insurance and investment contract liabilities.
Aegon has classified most of its loan portfolios, and all receivables as measured at amortized cost because they are held to collect contractual cash flows, which cash flows meet the SPPI criteria. Other debt instruments, held in a business model to collect contractual cash flows and to be sold when asset liability management strategy requires, and meet the SPPI criteria are classified as measured at fair value through other comprehensive income (FVOCI).
\nEquity instruments are classified as financial assets measured at\u00a0FVPL. Aegon opted to measure a small portion of its equity instruments at FVOCI.
\nAll derivatives are carried at FVPL as assets when fair value is positive and as liabilities when fair value is negative.
Aegon designates certain derivatives as hedging instruments in either:
Hedges of the fair value of recognized assets or liabilities or firm commitments (fair value hedges);
Hedges of highly probable future cash flows attributable to a recognized asset or liability or a highly probable forecast transaction (cash flow hedges); or
Hedges of a net investment in a foreign operation (net investment hedges).
Aegon documents, at the inception of the hedge, the relationship between hedged items and hedging instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Additional details on derivatives and hedge accounting is disclosed in note 20 Derivatives.
\nAt initial recognition, Aegon measures a financial asset at its fair value plus or minus, in the case of a financial asset not at FVPL, transaction costs that are incremental and directly attributable to the acquisition or issue of the financial asset or financial liability, such as fees and commissions. Immediately after initial recognition, an expected credit loss allowance (ECL) is recognized for financial assets measured at amortized cost and investments in debt instruments measured at FVOCI, as described in note 4.2.6 Expected credit losses, which results in an accounting loss being recognized in profit or loss when an asset is newly originated.
\nInterest revenue from financial assets measured at amortized cost or FVOCI is included in \"Interest revenue on financial instruments calculated using the effective interest rate method\".
Movements in the carrying amount of FVOCI debt instruments are taken through OCI, except for the recognition of impairment\u00a0gains or losses, interest revenue and foreign exchange gains and losses on the instrument\u2019s amortized cost that are recognized as profit or loss. When the debt instrument is derecognized, the cumulative gain or loss previously recognized in\u00a0OCI is reclassified from equity to profit or loss and recognized in \"Net Investment result.\" In the case of equity instruments measured at FVOCI the cumulative gain or loss would never be recycled in profit or loss.
When the debt instrument is derecognized, the cumulative gain or loss previously recognized in\u00a0OCI is reclassified from equity to profit or loss and recognized in \"Net Investment result\".
\nGains and losses on financial instruments at FVPL are included in the Results from financial transactions line in the\u00a0consolidated income statement, unless the financial instrument has been designated as a hedging instrument in a cash flow hedge or a hedge of a net investment in a foreign operation, when the effective portion of the fair value change is recognized in other comprehensive income. Fair value movements of fair value hedge instruments are offset by the fair value movements of the hedged item, and the resulting hedge ineffectiveness, if any, is included in result from financial transactions.
Interest revenue from debt securities at FVPL and derivatives is presented separately as \"Interest\u00a0revenue from financial instruments measured at FV.\"
\nIn the case of equity instruments measured at FVOCI the cumulative fair value gain or loss would never be recycled in\u00a0profit\u00a0or\u00a0loss.
\nWhen the contractual rights to the asset\u2019s cash flows expire, or an obligation arises to pass on all received cash flows without delay, or the asset is transferred with substantially all the risks and rewards of ownership or control over the asset is lost, Aegon derecognizes the financial asset.
When a novation takes place Aegon assesses whether the derecognition criteria are met. Aegon does not derecognize the\u00a0contract only if:
The old counterparty and new counterparty share the same parent company; and
Contract characteristics of the old contract and the new contract are the same; and
The risk profile of both contract parties is similar (either by both having a parental guarantee or both entities having an\u00a0investment grade rating)
On derecognition, the difference between the disposal proceeds and the carrying amount is recognized in the income statement within the results from financial transactions.
\nAegon sometimes renegotiates or otherwise modifies the contractual cash flows of financial assets. When this happens, Aegon assesses whether the new terms are substantially different to the original terms. Aegon does this by considering, among other things, the following qualitative and quantitative factors:
If the borrower is in financial difficulty, whether the modification merely reduces the contractual cash flows to amounts the\u00a0borrower is expected to be able to pay.
Whether any substantial new terms are introduced, such as a profit share/equity-based return that substantially affects the\u00a0risk profile of the loan or equity conversion option.
Significant extension of the loan term when the borrower is not in financial difficulty.
Significant change in the interest rate.
Change in the currency the loan is denominated in.
Insertion of collateral, other security or credit enhancements that significantly affect the credit risk associated with the loan.
Change in seniority or subordination.
Any change in SPPI assessment of the asset.
Significant change in the present value of the instrument.
If the terms are substantially different, Aegon derecognizes the original financial asset and recognizes a \"new\" asset at fair value and recalculates a new effective interest rate for the asset. The date of renegotiation is consequently considered to be the date of initial recognition for impairment calculation purposes, including for the purpose of determining whether a significant increase in credit risk has occurred. However, Aegon also assesses whether the new financial asset recognized is deemed to be credit-impaired at initial recognition, especially in circumstances where the renegotiation was driven by the debtor being unable to make the originally agreed payments. Differences in the carrying amount are also recognized in profit or loss as a gain or loss on derecognition (Results from financial transactions).
If the terms are not substantially different, the renegotiation or modification does not result in derecognition, and Aegon recalculates the gross carrying amount based on the revised cash flows of the financial asset and recognizes a modification gain or loss in profit or loss as result from financial transactions. The new gross carrying amount is recalculated by discounting the modified cash flows at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets).
The impact of modifications of financial assets on the expected credit loss calculation is discussed in note 4.2.6 Expected credit losses.
\nA financial instrument issued by the Group is classified as a liability if the contractual obligation must be settled in cash or another financial asset or through the exchange of financial assets and liabilities at potentially unfavorable conditions for\u00a0the\u00a0Group.
\nTrust pass-through securities and (subordinated) borrowings are initially recognized at their fair value including directly attributable transaction costs and are subsequently carried at amortized cost. Interest expense on trust pass-through securities and other borrowings carried at amortized cost is recognized in profit or loss as \"interest charges\" using the\u00a0effective interest method.
Subordinated borrowings include the liability component of non-cumulative subordinated notes. These notes are identified as\u00a0a compound instrument due to the nature of this financial instrument. Compound instruments are separated into equity components and liability components. The liability component for the non-cumulative subordinated notes is related to the\u00a0redemption amount.
\nInvestment contracts issued by Aegon in the Americas that are considered financial liabilities include fixed and variable annuities without significant life contingent guarantees, as well as separate accounts without significant life contingent guarantees, institutional products, and retirement savings plans. Aegon values all these products at amortized cost.
In the United Kingdom, financial liabilities where the policyholder bears the risk for investment performance comprise unit- linked investment contracts. These liabilities are designated FVPL due to being contractually linked to a pool of financial assets which are measured at fair value. The risks in respect of these liabilities are managed and evaluated on a fair value basis in accordance with a documented policy of asset and liability management.
As these contracts are not quoted in active markets, their value is determined by using valuation techniques, such as discounted cash flow methods and stochastic modeling. For investment contracts without discretionary participation features\u00a0that can be canceled by the policyholder, the fair value cannot be less than the surrender value.
\nLoan commitments provided by Aegon are measured as the amount of the loss allowance (calculated as described in note 4.2.6 Expected credit losses). Aegon has not provided any commitment to provide loans at a below-market interest rate, or that can be settled net in cash or by delivering or issuing another financial instrument.\u00a0
For loan commitments, the loss allowance is recognized as a provision. However, for contracts that include both a loan and an\u00a0undrawn commitment and Aegon cannot separately identify the expected credit losses on the undrawn commitment component from those on the loan component, the expected credit losses on the undrawn commitment are recognized together with the loss allowance for the loan. To the extent that the combined expected credit losses exceed the gross carrying amount of the loan, the expected credit losses are recognized as a provision.
\nFees and commissions from investment management services and mutual funds are performed on an ongoing basis evenly throughout the year and are accounted for monthly (1/12 of the contractual agreement). Performance fees may be charged to\u00a0policyholders in the event of outperformance in the investments compared to predefined benchmark levels. They are accounted for only when specified hurdles for generating performance fees are achieved i.e. when the full performance obligation is met.
Aegon acts also as an insurance broker selling insurance contracts of other insurance companies to policyholders and receiving direct sales commission as well as commissions over time when the same policyholders renew their contracts. These commissions are recognized only when received as policyholders\u2019 renewals are not certain enough to be recorded upfront.
Initial fees and front-end loadings paid by policyholders and other clients for future investment management services related to investment contracts without discretionary participation features are deferred and recognized as revenue when the related services are rendered.
\nThe Group does not recognize as intangible assets those costs that are directly incurred in fulfilling the insurance contracts and they comprise both direct costs and an allocation of fixed and variable overheads.
\nOn the acquisition of a portfolio of investment contracts without discretionary participation features under which Aegon will render investment management services, the present value of future servicing rights is recognized as an intangible asset. Future servicing rights can also be recognized on the sale of a loan portfolio or the acquisition of insurance agency activities.
The present value of the future servicing rights is amortized over the servicing period and is subject to impairment testing. It\u00a0is\u00a0derecognized when the related contracts are settled or disposed of.
Where applicable, Aegon recognizes other intangibles on the acquisition of a business combination such as those related to customer relationships.\u00a0This can include customer contracts, distribution agreements and client portfolios. For these intangibles the present value of future cash flows is recognized and amortized in the period when future economic benefits arise from these intangibles. These intangible assets are also presented under future servicing rights.
\nInvestments in real estate include property held to earn rentals or for capital appreciation, or both. Investments in real estate\u00a0are presented as \"Investments\". Property that is occupied by the Group and that is not intended to be sold in\u00a0the\u00a0near\u00a0future\u00a0is classified as real estate held for own use and is presented in Other assets and receivables.
All property is initially recognized at cost. Such cost includes the cost of replacing part of the real estate and borrowing cost\u00a0for long-term construction projects if recognition criteria are met. Subsequently, investments in real estate are measured\u00a0at fair value with the changes in fair value recognized in the income statement. Real estate held for own use is carried at its revalued amount, which is the fair value at the date of revaluation less subsequent accumulated depreciation and impairment\u00a0losses. Depreciation is calculated on a straight-line basis over the useful life of a building. Land is not depreciated. Revaluation\u00a0of real estate for own use is recognized in other comprehensive income and accumulated in revaluation reserve in equity.\u00a0On revaluation the accumulated depreciation is eliminated against the gross carrying amount of\u00a0the asset and the net amount\u00a0is restated to the revalued amount.
On disposal of an asset, the difference between the net proceeds received and the carrying amount is recognized in\u00a0the\u00a0income statement. Any remaining surplus attributable to real estate in own use in the revaluation reserve is\u00a0transferred\u00a0to\u00a0retained earnings.
\nInvestments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement.\u00a0Aegon has assessed the\u00a0nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the\u00a0equity\u00a0method.
If joint ventures are obtained in successive share purchases, each significant transaction is accounted for separately.
Aegon applies a fair value approach for accounting of a step acquisition of a joint venture or an associate, which means that the fair value of a previously held interest at the date that joint control or significant influence is obtained is deemed to be the\u00a0cost for the initial application of equity accounting.
The acquisition of preferred shares of equity accounted investees increases the carrying amount of the asset as, though they\u00a0are non-voting, the investees give access to the returns associated with an ownership interest in the joint venture.
Gains and losses on transactions between the Group and the joint ventures are eliminated to the extent of the Group\u2019s interest in the entity, with the exception of losses that are evidence of impairment which are recognized immediately. Own\u00a0equity instruments of Aegon Ltd. that are held by the joint venture are not eliminated.
The Group\u2019s interests in some joint arrangements are underlying items of participating contracts. The Group has elected to\u00a0measure these investments at FVPL because it manages them on a fair value basis.
\nEntities over which the Group has significant influence through power to participate in financial and operating policy decisions, but which do not meet the definition of a subsidiary, are accounted for using the equity method.
In assessing the extent to which Aegon can influence an entity, the same considerations apply as in analyzing the extent to which Aegon has control over a potential subsidiary. A voting power of less than 20% allows the presumption that significant influence does not exist (unless such influence can be clearly demonstrated), and likewise a voting power of at least 20% allows the presumption that the investor has significant influence over the investee.
Aegon recognizes impairment of associates accounted for using the equity method when there is objective evidence that the\u00a0recoverability of the carrying amount decreased. Among the events which are considered such objective evidence a\u00a0significant or prolonged decline in fair value can be considered as an impairment trigger. Aegon defined a decline to be significant using a threshold of fair value being a minimum of 20% lower than the carrying amount, and the term prolonged is\u00a0achieved at a fair value being continuously below the carrying amount for a period of six months.
Interests held by venture capital entities, mutual funds and investment funds that qualify as an associate are accounted for as an investment held at fair value through profit or loss. Interests held by the Group in venture capital entities, mutual funds and investment funds that are managed on a fair value basis, are also accounted for as investments held at fair value through profit or loss.
\nDeferred transaction costs relate to investment contracts without discretionary participation features under which Aegon will\u00a0render investment management services. Incremental costs that are directly attributable to securing these investment management contracts are recognized as an asset if they can be identified separately and measured reliably and if it is probable that they will be recovered.
For contracts involving both the origination of a financial liability and the provision of investment management services, only\u00a0the transaction costs allocated to the servicing component are deferred. The other transaction costs are included in\u00a0the\u00a0carrying amount of the financial liability.
The deferred transaction costs are amortized in line with fee income, unless there is evidence that another method better\u00a0represents the provision of services under the contract. The amortization is recognized in the income statement. Deferred\u00a0transaction costs are subject to impairment testing at least annually.
Deferred transaction costs are derecognized when the related contracts are settled or disposed of.
\nCash comprises cash at banks and in hand. Cash equivalents are short-term, highly liquid investments generally with original maturities of three months or less that are readily convertible to known cash amounts, are subject to insignificant risks of changes in value and are held for the purpose of meeting short-term cash requirements. Money market investments that are held for investment purposes (backing insurance liabilities, investment liabilities or equity based on asset liability management considerations) are not included in cash and cash equivalents but are presented as investments or investments on the account of policyholders.
\nAssets are tested individually for impairment when there are indications that the asset may be impaired. For goodwill and intangible assets with an undefined life, an impairment test is performed at least once a year or more frequently as a result of\u00a0an event or change in circumstances that would indicate an impairment charge may be necessary. The impairment loss is\u00a0calculated as the difference between the carrying and the recoverable amount of the asset, which is the higher of an asset\u2019s value in use and its fair value less the cost of disposal. The value in use represents the discounted future net cash flows from the continuing use and ultimate disposal of the asset and reflects its known inherent risks and uncertainties. The valuation utilizes the best available information, including assumptions and projections considered reasonable and supportable by management. The assumptions used in the valuation involve significant judgments and estimates. See note 24 Intangible assets for more details.
\nFinancial instruments that are issued by the Group are classified as equity if they represent a residual interest in the assets of\u00a0the Group after deducting all of its liabilities and the Group has an unconditional right to avoid delivering cash or another financial asset to settle its contractual obligation. In addition to common shares, the Group has issued perpetual securities. Perpetual securities have no final maturity date, repayment is at the discretion of Aegon. For junior perpetual capital securities, Aegon has the option to defer coupon payments at its discretion. The perpetual capital securities are classified as\u00a0equity rather than debt, are measured at par and those that are denominated in US dollars are translated into euro using historical exchange rates. Treasury shares are deducted from Group equity.
Non-cumulative subordinated notes were identified as a compound instrument due to the nature of this financial instrument. For these non-cumulative subordinated notes, Aegon had an unconditional right to avoid delivering cash or another financial asset to settle the coupon payments. The redemption of the principal was however not at the discretion of Aegon and therefore Aegon had a\u00a0contractual obligation to settle the redemption in cash or another financial asset or through the exchange of financial assets and liabilities at potentially unfavorable conditions for Aegon. Compound instruments were separated into liability components and equity components. The liability component for the non-cumulative subordinated notes was equal to the present value of the redemption amount and carried at amortized cost using the effective interest rate method. The unwinding of the discount of this component was recognized in the income statement. At initial recognition the\u00a0equity component was assigned the residual amount after deducting the liability component from the fair value of the\u00a0instrument as a whole. The equity component in US dollars was translated into euro using historical exchange rates. Incremental external costs that are directly attributable to the issuing or buying back of own equity instruments are recognized in equity, net of tax. For compound instruments incremental external costs that were directly attributable to the\u00a0issuing or buying back of the compound instruments were recognized proportionate to the equity component and liability component, net of tax. The Group recognizes the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where it originally recognized the past transactions or events that generated the distributable profits. A liability for non-cumulative dividends payable is not recognized until the dividends have been declared and approved.
When the Group reacquires its own equity instrument and includes the share as an underlying item of direct participating contracts, the Group may elect not to deduct the reacquired instrument from equity and instead account for the reacquired instrument as if it were a financial asset and measure it at FVPL. This election is irrevocable and is made on an instrument-by-instrument basis.\u00a0
\nA liability is recognized for the undiscounted amount of short-term employee benefits expected to be settled within one year after the end of the period in which the service was rendered. Accumulating short-term absences are recognized over the period in which the service is provided. Benefits that are not service-related are recognized when the event that results in obligation occurs.
\nThe Group has issued defined contribution plans and defined benefit plans. A plan is classified as a defined contribution plan when the Group has no further obligation than the payment of a fixed contribution. All other plans are classified as defined benefit plans.
\nThe contribution payable to a defined contribution plan for services provided is recognized as an expense in the income statement. An asset is recognized to the extent that the contribution paid exceeds the amount due for services provided.
\nThe defined benefit obligation is based on the terms and conditions of the plan applicable on the reporting date. In measuring the defined benefit obligation the Group uses the projected unit credit method and actuarial assumptions that represent the management's best estimates. The benefits are discounted using an interest rate based on the market yield for high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity that approximate the terms of the related pension liability. Actuarial assumptions used in the measurement of the liability include the discount rate, estimated future salary increases, mortality rates and price inflation. To the extent that actual experience deviates from these assumptions, the valuation of defined benefit plans and the level of pension expenses recognized in the\u00a0future may be affected. Plan improvements (either vested or unvested) are recognized in the income statement at the date when the plan improvement occurs.
Plan assets are qualifying insurance policies and assets held by long-term employee benefit funds that can only be used to\u00a0pay the employee benefits under the plan and are not available to the Group\u2019s creditors. They are measured at fair value and are deducted from the defined benefit obligation in determining the amount recognized on the statement of financial position. For reimbursements by associated third parties of some or all of the expenditure required to settle a defined benefit obligation, a reimbursement asset is recognized on the basis of the present value of the related obligation, subject to any reduction required if the reimbursement is not recoverable in full.
\nThe cost of the defined benefit plans is determined at the beginning of the year and comprise the following components:
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.
Remeasurements of the net defined benefit liability (asset) which is recognized in other comprehensive income are revisited quarterly and are not allowed to be reclassified to profit or loss in a subsequent period.
Deducted from current year service cost are discretionary employee contributions and employee contributions that are linked to service (those which are independent of the number of years of service).\u00a0Net interest on the net defined benefit liability (asset) is determined by multiplying the net defined benefit liability (asset) by the applicable discount rate. Net interest on the\u00a0net defined benefit liability (asset) comprises interest income on plan assets and interest cost on the defined benefit obligation. Whereby interest income on plan assets is a component of the return on plan assets and is determined by multiplying the fair value of the plan assets by the applicable discount rate. The difference between the interest income on\u00a0plan assets and the actual return on plan assets is included in the remeasurement of the net defined benefit liability (asset).\u00a0Any movements during the period related to reimbursement assets, will be partly recognized in the income statement (interest cost on the reimbursement right) and partly through other comprehensive income for the difference between the\u00a0actual return and the interest cost.
\nThe Group has issued share-based plans that entitle selected employees to receive Aegon Ltd. common shares, subject to\u00a0pre-defined conditions such as the grant price of the shares and (business and personal) performance criteria. The number of shares that will vest may partly depend on Aegon\u2019s relative total shareholder return in comparison with a peer group\u00a0or return on regulatory capital.
The expenses recognized for these plans are based on the fair value on the grant date of the shares. The fair value is measured at the market price of Aegon Ltd. common shares, adjusted to take into account the non-vesting and market conditions upon which the shares were granted. For example, where the employee is not entitled to receive dividends during the vesting period, this factor is taken into account when estimating the fair value of the shares granted. For the determination of factors such as expected dividends, market observable data has been considered. In addition, where the relative total shareholder return is included in the performance criteria, this factor represents a market condition and hence is taken into account when estimating the fair value of the shares granted.\u00a0Subsequent changes in such market variables would not impact recognition of expenses during the service period. Some plans also include non-market vesting conditions like return on regulatory capital. These conditions are not considered in the estimation of grant date fair value, however subsequent changes in the expected outcome of such variables result in the update in the number of instruments expected to vest, therefore a remeasurement of cumulative expenses.
The cost for long-term incentive plans is recognized in the income statement, together with a corresponding increase in\u00a0shareholders\u2019 equity, as the services are rendered. During this period the cumulative expense recognized at the reporting date reflects management\u2019s best estimate of the number of shares expected to vest ultimately.\u00a0
The withholding of shares to fund the payment to the tax authorities in respect of the employee\u2019s withholding tax obligation associated with the share-based payment is accounted for as a deduction from equity for the shares withheld, except to the\u00a0extent that the payment exceeds the fair value at the net settlement date of the equity instruments withheld.
\nAegon has determined that the global minimum top-up tax \u2013 which it is required to pay under Pillar Two legislation, if applicable \u2013 is an income tax in the scope of IAS 12. Aegon has applied a temporary relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.
The income tax charge on the result for the year comprises current and deferred tax. Current tax is calculated taking into\u00a0account items that are non-taxable or disallowed, using rates that have been enacted or substantively enacted by the\u00a0reporting date and any adjustments to tax payable relating to previous years.\u00a0
Current tax receivables and payables for current and prior periods reflect the best estimate of the tax amount expected to\u00a0be\u00a0paid or received and include provisions for uncertain income tax positions, if any.\u00a0
Deferred tax assets and liabilities are recognized, using the liability method, for temporary differences arising between the\u00a0carrying value and tax value of an item on the balance sheet and for unused tax losses and credits carried forward. Deferred\u00a0tax assets and liabilities are measured using tax rates applicable that have been enacted or substantively
enacted\u00a0at\u00a0the balance sheet date and are expected to apply when the deferred tax asset is realized, or the deferred tax liability is settled.
Deferred tax assets are recognized for deductible temporary differences and unused tax losses and credits carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. The recognition of the deferred tax assets is based on Aegon\u2019s mid-term projections, including sensitivities and tax planning, and is reassessed periodically. Deferred tax liabilities relating to investments in subsidiaries, associates and joint ventures are not recognized if\u00a0the Group is able to control the timing of the reversal of the temporary difference and it is probable that the difference will not\u00a0be reversed in the foreseeable future.\u00a0
Tax assets and liabilities are presented separately in the consolidated balance sheet except where there is a legally enforceable right to offset the tax assets against tax liabilities within the same tax jurisdiction and the intention to settle such\u00a0balances on a net basis.
Tax assets and liabilities are recognized in relation to the underlying transaction either in profit and loss, other comprehensive income or directly in equity.\u00a0
\nThe Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or\u00a0before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the\u00a0underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The\u00a0right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of real estate and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses (using the same rate to measure the lease liability), if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or if that rate cannot be readily determined, the Group\u2019s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The lease liability is\u00a0measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group\u2019s estimate of the amount expected to\u00a0be\u00a0payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. The Group presents right-of-use assets that do not meet the definition of investment property in Other assets and receivables and lease liabilities in Other liabilities in the statement of financial position.
Short-term leases and leases of low-value assets The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets, including small office equipment. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
\nWhere the Group is the lessor under an operating lease, the assets subject to the operating lease arrangement are presented in the statement of financial position according to the nature of the asset. Income from these leases is recognized in the income statement on a straight-line basis over the lease term, unless another systematic basis is more representative of the\u00a0time pattern in which the use benefit derived from the leased asset is diminished.
\nWith the exception of expenses made to acquire insurance contracts and investment contracts with discretionary participating features, all expenses are incurred as the related activities are performed.
\nThe financial statements are adjusted to reflect events that occurred between the reporting date and the date when the financial statements are authorized for issue, provided they give evidence of conditions that existed at the reporting date.
Events that are indicative of conditions that arose after the reporting date are disclosed, but do not result in an adjustment of\u00a0the financial statements themselves.
\nNote 38 Fair value determines the fair value of financial instruments with significant unobservable inputs (i.e. level\u00a03 financial\u00a0assets).
The following is a description of Aegon\u2019s methods of determining fair value, and a quantification of its exposure to assets and\u00a0liabilities measured at fair value.
Fair value is defined as the amount that would be received from the sale of an asset or paid to transfer a liability in\u00a0an\u00a0orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:
In the principal market for the asset or liability; or\u00a0
In the absence of a principal market, in the most advantageous market for the asset or liability.
Aegon uses the following hierarchy for measuring and disclosing the fair value of assets and liabilities:
Level I: quoted prices (unadjusted) in active markets for identical assets or liabilities that Aegon can access at\u00a0the\u00a0measurement 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\u00a0valuation techniques for which any significant input is not based on observable market data.
The best evidence of fair value is a quoted price in an actively traded market. In the event that the market for a financial instrument is not active or quoted market prices are not available, a valuation technique is used.
The degree of judgment used in measuring the fair value of assets and liabilities generally inversely correlates with the level of observable valuation inputs. Aegon maximizes the use of observable inputs and minimizes the use of unobservable valuation inputs when measuring fair value. Financial instruments, for example, with quoted prices in active markets generally have more pricing observability, and therefore less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment.
The assets and liabilities categorization within the fair value hierarchy is based on the lowest input that is significant to the fair value measurement.
An active market is one in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The judgment as to whether a market is active may include, although not necessarily determinative, lower transaction volumes, reduced transaction sizes, and in some cases, no observable trading activity for short periods. In inactive markets, assurance is obtained that the transaction price provides evidence of fair value or it is determined that adjustments to transaction prices are necessary to measure the fair value of the instrument.
The majority of valuation techniques employ only observable market data, and so the reliability of the fair value measurement is high. However, certain assets and liabilities are valued on the basis of valuation techniques that feature one or more significant market inputs that are unobservable and, for such assets and liabilities, the derivation of fair value is more judgmental. An instrument is classified in its entirety as valued using significant unobservable inputs (level 3) if, in the opinion of management, a significant proportion of the instrument\u2019s carrying amount is driven by unobservable inputs. \"Unobservable\" in this context means that there is little or no current market data available from which to determine the price at which an at-arm\u2019s length transaction would be likely to occur. It generally does not mean that there is no market data available at all upon which to base a determination of fair value. Additional information is provided in the table headed Effect of changes in significant unobservable assumptions to reasonably possible alternatives in note 38 Fair Value. While Aegon believes its valuation techniques are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain instruments (both financial and non-financial) could result in a different estimate of fair value at the reporting date.
To operationalize Aegon\u2019s fair value hierarchy, individual instruments (both financial and non-financial) are assigned a fair value level based primarily on the type of instrument and the source of the prices (e.g., index, third-party pricing service, broker, internally modeled). Periodically, this logic for assigning fair value levels is reviewed to determine if any modifications are necessary in the context of the current market environment.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5755m3796p": { "value": "\nThe consolidated financial statements have been prepared in accordance with historical cost convention as modified by the revaluation of investment properties and those financial instruments (including derivatives) and financial liabilities that have been measured at fair value, except for the following items, which are measured on an alternative basis at each reporting date:
| \n \n Item | \n \n \n Measurement basis | \n
| \n \n Insurance and reinsurance contracts | \n \n \n Fulfillment cash flows plus the CSM | \n
| \n \n \n \n Net defined benefit liability / (asset) \n | \n \n \n Fair value of plan assets less the present value of the defined benefit obligations | \n
| \n \n Other impaired non-financial assets | \n \n \n Higher of fair value less costs of disposal and value in use | \n
| \n \n Financial instruments held to collect financial cash flows | \n \n \n Amortized cost | \n
Certain amounts in prior period may have been reclassified to conform to the current period presentation. These\u00a0reclassifications had no effect on net income, shareholders\u2019 equity or earnings per share.
The 2022 and 2023 comparatives include discontinued operations amounts including the effects of the sale of Aegon\u00a0the\u00a0Netherlands to a.s.r. This transaction was fully completed in July 2023, as shown in Aegon's Annual\u00a0Report\u00a02023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5627m3759p": { "value": "The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as\u00a0adopted by the European Union and with Part 9 of Book 2 of the Dutch Civil Code.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1090m1041p": { "value": "The consolidated financial statements are presented in euros and all values are rounded to the nearest million unless otherwise stated. The consequence is that the rounded amounts may not add up to the rounded total in all cases. All ratios and variances are calculated using the underlying amount rather than the rounded amount. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities from the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results may differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: insurance and reinsurance contracts as stated in the table above, fair value of certain invested assets and derivatives, purchased intangible assets, goodwill, pension plans, income taxes and the potential effects of resolving litigation matters. Aegon does not use the optional exemption provided under IFRS to group together specific insurance contracts that were issued more than 12 months apart.
\nIn preparing these consolidated financial statements, Aegon has made judgments, estimates and assumptions that affect the\u00a0application of the Group\u2019s accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual\u00a0results may differ from these estimates.
Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are the fair value of certain invested assets and derivatives (please\u00a0see\u00a0note 38 Fair value), the measurement of (re)insurance contracts and investment contracts with discretionary participating features (please see note 29 Insurance contracts), and the measurement of the expected credit loss allowance (please see note 4 Financial risks).\u00a0
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.
\nWhen making judgments, estimates, and assumptions, Aegon has taken into consideration the current macro-economic context, like the conflicts between Ukraine and Russia and between Israel and Hamas, which continued in 2024. In addition to causing a humanitarian crisis, these events impacted global financial markets and caused significant economic turbulence. Aegon closely monitors financial and wider economic developments to understand our exposure to potential shocks in the markets where we invest, and Aegon works proactively to mitigate related risks.
\nThe consolidated financial statements of Aegon have been prepared assuming a going concern basis of accounting based on the reasonable assumption that the Company is, and will be, able to continue its normal course of business in the foreseeable future. Relevant facts and circumstances relating to the consolidated financial position on December 31, 2024, were assessed in order to reach the going concern assumption. The main areas assessed are financial performance, capital adequacy, financial position and flexibility, liquidity, ability to access capital markets, leverage ratios and the level of Cash Capital at Holding. For further details, see note 37 Capital management and solvency. Considering all these areas management concluded that the going concern assumption for Aegon is appropriate in preparing the consolidated financial statements and there is no significant doubt about going concern.
\nInformation about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to\u00a0the carrying amount of insurance related assets and liabilities within the year ending December 31, 2024, is included in note\u00a029 Insurance contracts, reinsurance contracts held and investment contracts with discretionary participation features.
\nThe measurement of the expected credit loss (ECL) allowance for financial assets measured at amortized cost and FVOCI is\u00a0an\u00a0area that requires the use of complex models and significant assumptions about future economic conditions and credit behavior (e.g. the likelihood of customers defaulting and the resulting losses). Explanation of the inputs, assumptions, and estimation techniques used in measuring ECL is further detailed in note 4.2 Credit risk, which also sets out key sensitivities of\u00a0the ECL to changes in these elements.\u00a0
Detailed information about the judgments and estimates made by the Group and information incorporating the forward-looking information into the measurement of the ECL is set out in note 4.2 Credit risk.
\nThe classification of financial assets is based on Aegon\u2019s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. Aegon determines within which classification the financial assets are held by the assessment of the business model and the assessment whether the contractual terms of the assets are solely payments of principal and interest (SPPI) on the principal amount outstanding. The classification of financial assets determines how they are accounted for and how they are measured on an ongoing basis.
\nNote 38 Fair value determines the fair value of financial instruments with significant unobservable inputs (i.e. level\u00a03 financial\u00a0assets).
The following is a description of Aegon\u2019s methods of determining fair value, and a quantification of its exposure to assets and\u00a0liabilities measured at fair value.
Fair value is defined as the amount that would be received from the sale of an asset or paid to transfer a liability in\u00a0an\u00a0orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:
In the principal market for the asset or liability; or\u00a0
In the absence of a principal market, in the most advantageous market for the asset or liability.
Aegon uses the following hierarchy for measuring and disclosing the fair value of assets and liabilities:
Level I: quoted prices (unadjusted) in active markets for identical assets or liabilities that Aegon can access at\u00a0the\u00a0measurement 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\u00a0valuation techniques for which any significant input is not based on observable market data.
The best evidence of fair value is a quoted price in an actively traded market. In the event that the market for a financial instrument is not active or quoted market prices are not available, a valuation technique is used.
The degree of judgment used in measuring the fair value of assets and liabilities generally inversely correlates with the level of observable valuation inputs. Aegon maximizes the use of observable inputs and minimizes the use of unobservable valuation inputs when measuring fair value. Financial instruments, for example, with quoted prices in active markets generally have more pricing observability, and therefore less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment.
The assets and liabilities categorization within the fair value hierarchy is based on the lowest input that is significant to the fair value measurement.
An active market is one in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The judgment as to whether a market is active may include, although not necessarily determinative, lower transaction volumes, reduced transaction sizes, and in some cases, no observable trading activity for short periods. In inactive markets, assurance is obtained that the transaction price provides evidence of fair value or it is determined that adjustments to transaction prices are necessary to measure the fair value of the instrument.
The majority of valuation techniques employ only observable market data, and so the reliability of the fair value measurement is high. However, certain assets and liabilities are valued on the basis of valuation techniques that feature one or more significant market inputs that are unobservable and, for such assets and liabilities, the derivation of fair value is more judgmental. An instrument is classified in its entirety as valued using significant unobservable inputs (level 3) if, in the opinion of management, a significant proportion of the instrument\u2019s carrying amount is driven by unobservable inputs. \"Unobservable\" in this context means that there is little or no current market data available from which to determine the price at which an at-arm\u2019s length transaction would be likely to occur. It generally does not mean that there is no market data available at all upon which to base a determination of fair value. Additional information is provided in the table headed Effect of changes in significant unobservable assumptions to reasonably possible alternatives in note 38 Fair Value. While Aegon believes its valuation techniques are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain instruments (both financial and non-financial) could result in a different estimate of fair value at the reporting date.
To operationalize Aegon\u2019s fair value hierarchy, individual instruments (both financial and non-financial) are assigned a fair value level based primarily on the type of instrument and the source of the prices (e.g., index, third-party pricing service, broker, internally modeled). Periodically, this logic for assigning fair value levels is reviewed to determine if any modifications are necessary in the context of the current market environment.
\nIFRS 9 outlines a \"three-stage\" model for impairment based on relative changes in credit quality since initial recognition:
A financial instrument that is not credit-impaired on initial recognition is classified in \"Stage 1\";
If a significant increase in credit risk (\"SICR\") since initial recognition is identified, the financial instrument is moved to \"Stage\u00a02\" but is not yet deemed to be credit-impaired (see \u201cSignificant increase in credit risk\u201d for further details);
If the financial instrument is credit-impaired, the financial instrument is then moved to \"Stage 3.\"
Credit risk is continuously monitored by Aegon in all the above stages.
Financial instruments in Stage 1 have their expected credit loss (ECL) measured at an amount equal to the portion of lifetime expected credit losses that result from default events possible within the follow 12 months. Financial instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit-impaired on initial recognition. Their ECL is always measured on a\u00a0lifetime basis.\u00a0
| \n | \n\n \n Stage 1 Impaired | \n \n \n Stage 2 Under-performing | \n \n \n Stage 3 Non-performing | \n \n \n \n \n Purchased or Originated Credit Impaired (POCI) \n | \n
| \n \n ECL | \n \n \n 12 month ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n
| \n \n Provision Trigger | \n \n \n n.a. | \n \n \n Quantitative and Qualitative Triggers | \n \n \n Qualitative Triggers | \n \n \n Qualitative Triggers | \n
| \n \n Days Past Due (\"DPD\") Backstop | \n \n \n \n \n Up to date and early arrears (< 30 DPD) \n | \n \n \n \n \n > 30 DPD (rebuttable presumption) \n | \n \n \n \n \n > 90 DPD (rebuttable presumption) \n | \n \n \n n.a. | \n
| \n \n Interest Income | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on net carrying amount | \n \n \n Interest calculated on net carrying amount using a credit-adjusted effective interest rate | \n
Following this assessment, IFRS 9 requires the incorporation of multiple, forward looking macro- scenarios to drive the ECL provision.
IFRS 9 requires that the measurement of ECL represent an unbiased probability-weighted amount that is to be determined by:
Evaluating a range of possible outcomes;\u00a0
Use reasonable and supportable information available without undue cost and effort about past events;
Current conditions; and\u00a0
Forecasts of future economic conditions.
When incorporating forward looking information, consideration should be given to the relevance of the information (and\u00a0the\u00a0availability of more relevant information) for each specific financial instrument or group of financial instruments. To\u00a0the extent relevant, forward-looking information used for the measurement of ECLs it needs to be consistent with that used\u00a0for\u00a0the\u00a0assessment of a significant increase in credit risk.
Credit losses are calculated as the product of projected probability of default, loss given default and exposure at default and are discounted using an appropriate discount rate. The ECL is determined as the probability weighted discounted credit losses that are determined for different scenarios (i.e. base, positive, adverse).\u00a0
Given the need to adapt the models to the different portfolio characteristics, all ECL models have different key judgments and assumptions. As such, the below paragraphs outline the key judgements and assumptions made by the Group in addressing the key requirements on a model-by-model basis.
The Group employs different models to calculate the ECL on different asset classes.
For bonds and private placements, the Group applies a global correlation model. It provides correlations of credit quality movements across different asset classes, linked with movements in the macro economy. A global correlation model is therefore used for determining the conditional PD and LGD, given a macroeconomic scenario. Unconditional PD and LGD curves are modelled with use of different methods for sovereign debt, corporate bonds and private placements.\u00a0
For commercial mortgage loans and mortgage-backed securities, the parameters are estimated with commercial mortgage metrics that use corporate bond PD and LGD estimates further adjusted with other assumptions based on debt service coverage and loan-to-value ratios.\u00a0
The Group applies a separate model for asset-backed securities, which pools the instruments based on the underlying collateral and estimates credit loss parameters collectively. Collateralized debt (loan) obligations (CDOs and CLOs) are special types of asset-backed securities to which a different set of models are applied depending on the region of the exposure.
\nThe ECL is measured on either a \"12-month basis\" (Stage 1) or \"lifetime basis\" (Stages 2 and 3), depending on whether a\u00a0significant increase in credit risk has occurred since initial recognition or whether an asset is considered to be credit-impaired.\u00a0
The expected credit losses are the discounted product of the Probability of Default, Exposure at Default, and Loss\u00a0Given\u00a0Default, defined as follows:
The PD represents the likelihood of a borrower defaulting on its financial obligation (as per \u201cDefinition of default and credit-impaired\u201d above), either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.\u00a0
EAD is based on the amounts the Group expects to be owed at the time of default.\u00a0
Loss Given Default represents Aegon\u2019s expectation of the extent of loss on a defaulted exposure. LGD varies by\u00a0type\u00a0of\u00a0counterparty, type and seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at the time of default.
The discount rate used in the ECL calculation is the original effective interest rate or an approximation thereof. The lifetime PD is calculated for a financial instrument that results in default by summing the probabilities of all future developments which end-up in the ECL. All possible future developments are enumerated and for each future development a probability is calculated by statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.\u00a0
Forward-looking economic information is included in determining the 12-month and lifetime ECL, and lifetime PD by using a\u00a0set\u00a0of\u00a0variables describing the state of the macro economy as input in the calculation of the probability of default and prepayment.
As described above, and subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the Group measures ECL considering the risk of default over the maximum contractual period (including any borrower\u2019s extension options) over which Aegon is exposed to credit risk, even if the Group considers a\u00a0longer\u00a0period.\u00a0
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of significant increase in credit risk (SICR) and the calculation of ECL both incorporate forward-looking information. Aegon has performed historical analysis and identified the key economic variables impacting credit risk and expected credit losses for each portfolio.\u00a0
These economic variables and their associated impact on the ECL and Lifetime PD vary by financial instrument. Expert judgment has also been applied in this process. Forecasts of these economic variables (the \u201cbase economic scenario\u201d) give\u00a0the best estimate view of the economy over the next five years. After five years, to project the economic variables out for the\u00a0full remaining lifetime of each instrument, a mean reversion approach has been used, which means that economic variables tend to either a long run average rate (e.g. for unemployment) or a long run average growth rate (e.g. GDP) over a period of three years. Statistical regression analysis has been performed to understand the impact changes in these macro-economic variables have had historically on default and prepayment rates.
Using the base scenario as a starting point, three macro-economic scenarios are generated by applying shocks to the macro-economic variables in a positive and negative direction, taking into account their correlation as historically observed, resulting in a positive, neutral, or negative scenario. The shocks applied correspond to the historical average deviance from the long-term mean observed in the best/worst 10% of the historically observed quarters. The ECL is calculated for each of the three scenarios, multiplied by the scenario weighting, and summed. The use of multiple economic scenarios ensures that the ECL represents the best estimate of expected credit loss and is not merely the credit loss in the most likely scenario.
As with any economic forecasts, the projections and likelihoods of occurrence are subject to a high degree of inherent uncertainty, and therefore, the actual outcomes may be significantly different to those projected. The Group considers these\u00a0forecasts to represent its best estimate of the possible outcomes.
\nThe most significant period-end assumptions used for the ECL estimate are set out below. The scenarios \u201cbase\u201d, \u201cupside\u201d, and\u00a0\u201cdownside\u201d were used for all portfolios.
| \n \n Economic variable assumptions, December 31, 2024 | \n \n | \n\n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.33 | \n \n \n 4.26 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.43 | \n \n \n 4.35 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 3.17 | \n \n \n 3.74 | \n \n \n 3.94 | \n \n \n 4.04 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.08 | \n \n \n 4.09 | \n \n \n 4.05 | \n \n \n 4.01 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.13 | \n \n \n 3.44 | \n \n \n 3.42 | \n \n \n 3.42 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.23 | \n \n \n 7.46 | \n \n \n 6.18 | \n \n \n 5.00 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 419.04 | \n \n \n 424.10 | \n \n \n 434.08 | \n \n \n 448.91 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 439.72 | \n \n \n 456.26 | \n \n \n 471.39 | \n \n \n 489.21 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 354.16 | \n \n \n 369.92 | \n \n \n 385.26 | \n \n \n 401.39 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 23,973.45 | \n \n \n 24,343.12 | \n \n \n 24,819.66 | \n \n \n 25,356.09 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,319.86 | \n \n \n 24,807.47 | \n \n \n 25,341.29 | \n \n \n 25,943.15 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,959.57 | \n \n \n 23,369.09 | \n \n \n 24,147.35 | \n \n \n 24,980.66 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 5,912.89 | \n \n \n 5,814.62 | \n \n \n 6,098.72 | \n \n \n 6,483.85 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,264.59 | \n \n \n 6,132.21 | \n \n \n 6,356.19 | \n \n \n 6,630.75 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 3,867.82 | \n \n \n 4,095.95 | \n \n \n 4,899.05 | \n \n \n 5,712.91 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions, December 31, 2023 | \n \n | \n\n \n 2024 | \n \n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.11 | \n \n \n 4.04 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.21 | \n \n \n 4.13 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 2.31 | \n \n \n 3.24 | \n \n \n 3.71 | \n \n \n 3.89 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.03 | \n \n \n 4.06 | \n \n \n 3.97 | \n \n \n 3.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.08 | \n \n \n 3.41 | \n \n \n 3.34 | \n \n \n 3.35 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 7.56 | \n \n \n 6.90 | \n \n \n 5.70 | \n \n \n 4.88 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 400.12 | \n \n \n 393.70 | \n \n \n 394.21 | \n \n \n 403.50 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 419.87 | \n \n \n 423.62 | \n \n \n 428.16 | \n \n \n 439.72 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 339.91 | \n \n \n 347.29 | \n \n \n 352.66 | \n \n \n 363.59 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 22,900.95 | \n \n \n 23,303.78 | \n \n \n 23,825.37 | \n \n \n 24,397.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 23,354.42 | \n \n \n 23,883.09 | \n \n \n 24,451.63 | \n \n \n 25,020.82 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,039.64 | \n \n \n 22,368.94 | \n \n \n 23,099.22 | \n \n \n 23,768.80 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 4,672.66 | \n \n \n 4,796.24 | \n \n \n 5,043.19 | \n \n \n 5,368.63 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 4,950.59 | \n \n \n 5,058.20 | \n \n \n 5,256.09 | \n \n \n 5,490.26 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 2,904.90 | \n \n \n 3,226.25 | \n \n \n 3,942.26 | \n \n \n 4,603.90 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
The weightings assigned to each economic scenario were as follows:
| \n \n Weightings | \n \n \n Base | \n \n \n Upside | \n \n \n Downside | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2023 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking considerations not otherwise incorporated within the above scenarios, such as the impact of any regulatory, legislative or political changes, have also been considered, but are not deemed to have a material impact, and therefore, no adjustment has been made to the ECL for such factors. This process is reviewed and monitored for appropriateness on a quarterly basis.
\nThe fulfillment cash flows comprise:
Estimates of future cash flows;
An adjustment to reflect time value of money and the financial risks related to future cash flows, to the extent that the\u00a0financial risks are not included in the estimates of future cash flows and
A risk adjustment for non-financial risk.
Each measurement element requires the use of significant judgment and estimates.
\nAegon\u2019s objective in estimating future cash flows is to determine a range of scenarios that reflects the likely possible outcomes. Each scenario specifies the amount and timing of the cash flows for a particular outcome, and the estimated probability of that outcome. The cash flows from each scenario are discounted and weighted by the estimated probability of\u00a0that outcome to derive an expected present value.
When determining the expected value of the full range of possible outcomes, the objective is to incorporate all reasonable and supportable information available without undue cost or effort in an unbiased way, rather than to identify every possible scenario. In some cases, relatively simple modeling provides an answer within an acceptable range of precision. In other cases, more complex valuation methods are required to satisfy the measurement objective. For example, if cash flows reflect a series of interrelated (implicit or explicit) options and respond in a non-linear fashion to changes in economic conditions, then Aegon often uses stochastic modeling techniques to estimate the expected present value. Stochastic modeling involves projecting future cash flows under a large number of possible economic scenarios for market variables such as interest rates and equity returns. Other methods that are used to measure non-linear cash flows include closed-form solutions and replicating portfolio techniques.
\nWhen estimating future cash flows, Aegon sets actuarial assumptions for underwriting risk including policy claims (such as\u00a0mortality, longevity, or morbidity), policyholder behavior (such as lapses, surrender of policies or partial withdrawals), and property\u00a0& casualty loss ratios and expenses. Actuarial assumptions are reviewed annually, with the exception of expense assumptions, which might be updated more frequently as a result of the quarterly monitoring of actual expenses.
\nMortality tables are generally developed and\u00a0applied based on a blend of company experience and industry wide studies, taking into consideration product characteristics, own risk selection criteria, target market and past experience. Mortality experience is monitored through regular studies, the results of which are fed into the pricing cycle for new products and reflected in the liability calculation for in-force groups of contracts where appropriate. For contracts insuring survivorship or mortality, allowance is made for further longevity or mortality improvements. Morbidity assumptions are based on own claims severity and frequency experience, adjusted where appropriate for industry information. Industry surveys are used for judgment-based assumptions, such as morbidity improvement and cost of long-term care (LTC) inflation.
Surrender and lapse rates depend on product features, policy duration, and external circumstances such as the interest rate environment and competitor behavior. For policies where policyholders are expected to have a financial incentive to choose a\u00a0favorable lapse timing based on the market conditions, a dynamic lapse assumption is utilized to reflect expected policyholder behavior when applying multiple scenarios in measurement. Own experience, as well as industry-published data, is used to establish assumptions. Lapse experience is correlated to mortality and morbidity levels, as higher or lower levels of surrenders may indicate future claims will be higher or lower than anticipated. Such correlations are accounted for in\u00a0the mortality and morbidity assumptions based on the emerging analysis of experience.
Policyholder benefits that are directly linked to asset performance are projected at rates that are consistent with the discount rates applied. For cash flows like crediting rates, the projected cash flows reflect how the reporting unit would determine crediting rates in a given scenario based on the Group\u2019s crediting policies. Other management actions are taken into account to the extent that they are part of Aegon\u2019s regular policies and procedures.
Given that Aegon applies the premium allocation approach to most of its non-life insurance business, actuarial assumptions related to (ultimate) loss ratio assumptions only impact the fulfillment cash flows for onerous groups of contracts with remaining coverage and for contracts with incurred claims. Aegon uses a range of loss reserving techniques to estimate (ultimate) claims ratios, using historical claims development data as well as market observable inputs. Large-ticket reported claims are assessed on an individual basis.
\nExpenses that are attributable to the fulfillment cash flows include acquisition expenses, maintenance expenses, and claims settlement costs, as well as overhead costs that Aegon considers to be unavoidable when fulfilling the in-force contracts. Investment expenses are included in the fulfillment cash flows for contracts that provide investment-related or investment-return services, as well as for contracts where Aegon performs investment activities that enhance the policyholders\u2019 benefits from insurance coverage. Aegon\u2019s expense assumptions are based on the current level of expenses, adjusted for future expense inflation and the impact of known one-off projects (such as planned cost-saving initiatives or projects to implement additional regulatory reporting requirements). In not-at-scale units, further adjustment is made to reflect a long-term scale of business.
When allocating the attributable expenses to groups of contracts, Aegon leverages allocation approaches used for pricing or regulatory reporting. Where IFRS requires a greater level of granularity, additional allocation keys are applied that have been defined based on, for example, further expense studies. The expense inflation assumption is split into a financial component that is calibrated to market observables and a non-financial component that is set as an actuarial assumption. The non-financial component of the expense inflation assumption represents the estimated difference between general market inflation implied by the market and expense inflation that is specific to Aegon\u2019s product characteristics. Some inflation assumptions (such as LTC utilization and health medical inflation in the Americas) do not include a financial component but\u00a0are entirely set as an actuarial assumption, given that they are weakly correlated with general inflation indices and there\u00a0is no hedge market for such rates.
\nAegon adjusts the estimated future cash flows of a group of contracts to reflect the time value of money and the financial risks related to those cash flows, to the extent that the financial risks are not included in the estimates of cash flows. The\u00a0discount rates applied to the estimates of the future cash flows:
Reflect the time value of money, the characteristics of the cash flows and the liquidity characteristics of the insurance contracts;
Are consistent with observable current market prices (if any) for financial instruments with cash flows whose characteristics are consistent with those of the insurance contracts, in terms of, for example, timing, currency, and liquidity; and
Exclude the effect of factors that influence observable market prices but do not affect the future cash flows of the\u00a0insurance contracts.
No implicit adjustments for non-financial risks are included in the discount rates, as the risk adjustment for non-financial risks is\u00a0explicitly included in the fulfillment cash flows.
When determining the discount rates at the date of initial recognition of a group of contracts, Aegon uses weighted-average discount rates over the period that contracts in that group are issued.\u00a0
IFRS explicitly mentions two calibration options for the discount rate, namely the \"top-down approach\" and \"bottom-up\" approach. Aegon has generalized both approaches into a direct discounting technique in which discount rates are determined as the sum of the risk-free rate plus a percentage of the illiquidity premium (ILP). The ILP is an extra spread that an investor can\u00a0earn by investing in a security that offers limited or no ability for the investor to exit the investment prior to its maturity. If\u00a0an\u00a0insurance liability is illiquid (meaning that the policyholder has limited or no ability to cash it in prior to maturity or contingency-based payment), the liability is discounted at a rate that includes an ILP because illiquid assets (earning an illiquidity premium) may be purchased to back or replicate that liability.\u00a0
\nAegon has identified various rates available in the EUR, GBP and USD markets that can be used as a basis for the risk-free yield curve, including EURIBOR swap rates for EUR, reformed Sterling Overnight Index Average (SONIA) for GBP, and Secured Overnight Funding Rates (SOFR) and US Treasury rates for USD. EURIBOR rates are adjusted for credit risk by subtracting a credit risk allowance. No adjustment is made to overnight swap rates and US Treasury rates, as the credit risk of these instruments is deemed negligible.
A full risk-free yield curve is derived by first interpolating between tenors for which market data is available, and then extrapolating the yield curve beyond market observable maturities. Discount rates converge linearly in 10 years to an ultimate forward rate. A uniform last liquid point for EUR and USD is set at 30 years, GBP is set at 50 years. The ultimate forward rates reflect a long-term view on nominal interest rates and is set by management per currency, considering expected real interest rates and long-term inflation together with the current market environment. The ultimate forward rates have been reviewed as part of the annual Group economic assumptions update and revised to 3.40% effective December 31, 2024 (December 31, 2023: common level of 3.45%).
Aegon reviews the risk-free last liquid point and ultimate forward rates quarterly which, although expected to be infrequent, may lead to assumption updates if there are significant changes in market conditions.\u00a0
| \n \n Yield curves (zero coupon rates excluding ILP) December 31, 2024 | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n EUR | \n \n \n 2.24% | \n \n \n 2.15% | \n \n \n 2.27% | \n \n \n 2.33% | \n \n \n 2.26% | \n \n \n 2.00% | \n
| \n \n GBP | \n \n \n 4.46% | \n \n \n 4.04% | \n \n \n 4.07% | \n \n \n 4.23% | \n \n \n 4.30% | \n \n \n 4.23% | \n
| \n \n USD | \n \n \n 4.24% | \n \n \n 4.46% | \n \n \n 4.67% | \n \n \n 4.89% | \n \n \n 5.05% | \n \n \n 4.82% | \n
| \n \n Yield curves (zero coupon rates excluding ILP) December 31, 2023 | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n EUR | \n \n \n 3.36% | \n \n \n 2.33% | \n \n \n 2.39% | \n \n \n 2.47% | \n \n \n 2.40% | \n \n \n 2.18% | \n
| \n \n GBP | \n \n \n 4.74% | \n \n \n 3.35% | \n \n \n 3.28% | \n \n \n 3.40% | \n \n \n 3.43% | \n \n \n 3.35% | \n
| \n \n USD | \n \n \n 4.83% | \n \n \n 3.89% | \n \n \n 3.90% | \n \n \n 4.00% | \n \n \n 4.39% | \n \n \n 4.00% | \n
Aegon sets ILPs at the level of the reporting unit or major business unit, reflecting how it manages the investments and ALM risk for the given block of liabilities. For example, in the United States, Aegon has set ILPs by lines of business which has resulted in 11 ILP curves. For each unit, an ILP curve is constructed that is based on the market-observables returns on a reference portfolio of assets. The reference portfolio is based on the unit\u2019s actual holdings or investment policy target mix of fixed-interest securities\u00a0except for single premium products with the need to link returns to the actual asset mix, or products with needs of frequent hedging to cover guarantees where Aegon may choose to allow for short-term deviations from the target to \u00a0be included. The reference portfolio excludes alternative investments (such as equities and real estate investments).\u00a0
To derive the ILP curve for respective lines of business, market observable spreads are sourced and adjusted for expected and unexpected default losses. The ILP is based on the weighted average of these adjusted spreads using the line of business reference portfolio.\u00a0
The full ILP curve is derived by interpolating between the observable tenors and then extrapolating the yield linearly beyond the ILP last liquid point to the ultimate forward ILP. The last liquid point can be set separately for each duration bucket or, as\u00a0a\u00a0practical simplification, as a single point in time for the entire reference portfolio. The ultimate forward spread is set based on the historical 50th percentile spread adjusted for expected and unexpected default losses.
Aegon uses the expected default loss from historical default data plus an adjustment for default risk premium. The adjustment for the default risk premium or the unexpected default loss is calculated by applying 30% on top of the expected default, which is based on the management's judgment.
Aegon updates the reference portfolio quarterly, and the ILP last liquid point and ILP ultimate forward rate are revised accordingly. The most significant products of Aegon Ltd. are presented below. These ILP curves are added to the risk-free yields of the currency in which the cash flows of the products are denominated.
| \n \n ILP per portfolio, December 31, 2024 | \n \n \n Country | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n Fixed Deferred Annuity | \n \n \n US | \n \n \n 0.80% | \n \n \n 0.88% | \n \n \n 1.00% | \n \n \n 1.14% | \n \n \n 1.14% | \n \n \n 1.15% | \n
| \n \n Indexed Universal Life | \n \n \n US | \n \n \n 0.90% | \n \n \n 1.02% | \n \n \n 1.09% | \n \n \n 1.22% | \n \n \n 1.21% | \n \n \n 1.22% | \n
| \n \n Long-Term Care | \n \n \n US | \n \n \n 0.72% | \n \n \n 0.73% | \n \n \n 0.77% | \n \n \n 1.06% | \n \n \n 1.14% | \n \n \n 1.28% | \n
| \n \n Traditional Life | \n \n \n US | \n \n \n 0.75% | \n \n \n 0.77% | \n \n \n 0.80% | \n \n \n 1.09% | \n \n \n 1.15% | \n \n \n 1.26% | \n
| \n \n Universal Life | \n \n \n US | \n \n \n 0.76% | \n \n \n 0.79% | \n \n \n 0.81% | \n \n \n 1.05% | \n \n \n 1.11% | \n \n \n 1.24% | \n
| \n \n Variable Annuities | \n \n \n US | \n \n \n 0.55% | \n \n \n 0.63% | \n \n \n 0.64% | \n \n \n 0.65% | \n \n \n 0.64% | \n \n \n 0.66% | \n
| \n \n Annuities | \n \n \n UK | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.96% | \n
| \n \n Individual Protection | \n \n \n UK | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.45% | \n
| \n \n ILP per portfolio, December 31, 2023 | \n \n \n Country | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n Fixed Deferred Annuity | \n \n \n US | \n \n \n 1.15% | \n \n \n 1.21% | \n \n \n 1.12% | \n \n \n 1.11% | \n \n \n 1.11% | \n \n \n 1.11% | \n
| \n \n Indexed Universal Life | \n \n \n US | \n \n \n 1.20% | \n \n \n 1.24% | \n \n \n 1.20% | \n \n \n 1.18% | \n \n \n 1.18% | \n \n \n 1.21% | \n
| \n \n Long-Term Care | \n \n \n US | \n \n \n 0.97% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 1.15% | \n \n \n 1.20% | \n \n \n 1.30% | \n
| \n \n Traditional Life | \n \n \n US | \n \n \n 0.99% | \n \n \n 1.01% | \n \n \n 1.02% | \n \n \n 1.15% | \n \n \n 1.19% | \n \n \n 1.28% | \n
| \n \n Universal Life | \n \n \n US | \n \n \n 1.01% | \n \n \n 1.03% | \n \n \n 1.02% | \n \n \n 1.13% | \n \n \n 1.17% | \n \n \n 1.26% | \n
| \n \n Variable Annuities | \n \n \n US | \n \n \n 0.69% | \n \n \n 0.69% | \n \n \n 0.68% | \n \n \n 0.67% | \n \n \n 0.64% | \n \n \n 0.67% | \n
| \n \n Annuities | \n \n \n UK | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.76% | \n
| \n \n Individual Protection | \n \n \n UK | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.40% | \n
The illiquidity factor reflects the liquidity characteristics of a certain group of insurance contracts.\u00a0 Groups of contracts whose cash flows are not dependent on the underlying assets are assigned an illiquidity factor of 100%. Groups of contracts for which the cash flows predominantly vary with the underlying assets are assigned an illiquidity factor of 0%. For example, Aegon UK does not apply an illiquidity factor to the Unit Linked products. For a few products that include both types of cash flows, such as US variable annuity products with guaranteed minimum withdrawal benefits, a combination of 100% and 0% ILP is used.
\nInterest rate volatilities are modeled based on swaption prices, in line with current market pricing.
\nThe risk adjustment for non-financial risk is included explicitly as a separate component of the fulfillment cash flows. It reflects the compensation that Aegon requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as it fulfils insurance contracts.\u00a0
The non-financial risks considered include mortality, morbidity, policyholder behavior, expense, and product specific operational risk. Non-financial risks that do not arise from the insurance contracts, such as general operational risk, are\u00a0not\u00a0reflected in the risk adjustment. The risk adjustment reflects both the risk that actual experience differs from the best estimate assumption used to project future cash flows due to mis-estimation (parameter risk), as well as the risk of random fluctuations around the true estimates (contagion risk).\u00a0
Diversification benefits are recognized at the Group level. To align with market practice, Aegon only reflects the degree of diversification between non-financial risks, and contrary to its pricing methodology, ignores diversification benefits between financial and non-financial risks. Diversification effects include the impact of reinsurance ceded, as well as insurance contracts classified as held for sale.
Aegon generally applies a simplified confidence interval technique which estimates the risk adjustment for non-financial risk using a confidence level (probability of sufficiency) approach at the 80th percentile. Under this approach, a probability distribution is assumed for each particular risk and the amount above the expected present value of future cash flows determined (using a shock factor). The impacts for each risk are then aggregated using a correlation matrix, reflecting diversification between the various non-financial risk types. For some products, Aegon measures contagion risk using the\u00a0Conditional Tail Expectation technique at the 75th percentile. Regardless of the technique applied, the confidence interval is computed across the entire product lifetime in order to fully reflect the risk.\u00a0
\nActuarial assumptions are reviewed periodically in the second quarter for the United States and in the fourth quarter for Europe and Asia, based on historical experience, observable market data, including market transactions such as acquisitions and reinsurance transactions, anticipated trends, and legislative changes. Similarly, the models and systems used for determining our liabilities and reinsurance assets are reviewed periodically, and if deemed necessary, updated based on emerging best practice and available technology.\u00a0
During 2024, Aegon implemented actuarial assumption and model updates which are mainly related to Aegon\u2019s business in\u00a0the Americas.
Assumption updates (non-financial assumptions) are absorbed in the CSM where there are sufficient balances. The change in CSM will impact the amount amortized in the current period and all prospective periods. The total pre-tax impact of non-financial assumption changes at the end of 2024 is a EUR 489 million increase in liabilities. Most of the impact was related to updated mortality assumptions for Protection Solutions and Financial Assets lines of business, where the book has been experiencing volatile and unfavorable claims experience. As a result, the universal life and individual life products are now mainly onerous, however\u00a0there is a limited impact on total liabilities as it is offset by\u00a0the movements in CSM.
Aegon did not make any significant changes to the contract boundaries in the current reporting period, nor did it update the\u00a0approaches used to determine the discount rate or estimate the risk adjustment for non-financial risk.
\nIn addition to the judgments and estimates made in measuring the fulfillment cash flows that are described above, other\u00a0significant judgments are applied in determining:
The relative weighting of coverage units when multiple services are provided;
The non-distinct investment component, which is excluded from insurance revenue; and
The adjustment for nonperformance risk that is applied to reinsurance contracts held.
Often one single metric can be defined that captures multiple services provided under one contract. Different approaches are\u00a0used by Aegon when assessing the relative weighting of the benefits of different services. In some cases, the weighting is done in a way that directly flows from the composition of the benefits under the contract. For example, for a life insurance product with an account value that can be surrendered, coverage units can be based on the total death benefit as this amount comprises both the account value (investment service) and the excess death benefits (insurance service). In other cases, significant judgment is required. For example, for US long-term care insurance products, multiple drivers impact the maximum daily benefit to which a policyholder could be entitled. To reflect this, the coverage unit is computed using a combination of the\u00a0initial allowed benefit, the benefit period, as well as adjustments for any inflation protection and if the policy is paid-up on the\u00a0contingent non-forfeiture option.
\nAegon reports insurance revenue and insurance service expenses excluding non-distinct investment components. An\u00a0investment component is defined as the amount that an insurance contract requires Aegon to repay to a policyholder, even\u00a0if\u00a0the insured event does not occur.
Aegon determines the investment component when a claim is incurred as an amount is released from the liability for\u00a0remaining coverage. When doing so it considers which payments would have been possible immediately prior to the claims date. For example, a payment might have needed to be made to the policyholder in light of policy surrender, the uptake of a policy loan or the partial withdrawal, or the transfer of an insurance policy to another insurer. The investment component is defined net of any penalty or similar charges.
\nThe nonperformance risk by the reinsurer is based on Aegon\u2019s credit exposure, net of collateral, and the perceived counterparty default risk. In assessing the credit exposure, Aegon takes into account treaty provisions for non-performance, such as the automatic recapture of the reinsured business on default of the reinsurer.\u00a0
When estimating a reinsurer\u2019s default risk, Aegon considers the current financial condition and credit standing of the reinsurer, expert judgment specific to the local reinsurance market and historical data (such as Moody\u2019s loss given default rates). The\u00a0ultimate adjustment reflects the risk of potential reinsurance counterparty failure due to default (i.e. credit events), as\u00a0well\u00a0as disputes resulting in reduced payments and the potential for current conditions to change over time.
\nThe table below presents information about the\u00a0valuation techniques and significant unobservable inputs used for recurring fair value measurements for certain Level III financial instruments.
| \n | \n\n \n Valuation technique 1 | \n \n \n Significant unobservable input 2 | \n \n \n December 31, 2024 | \n \n \n \n \n Range (weighted average) \n | \n \n \n December 31, 2023 | \n \n \n \n \n Range (weighted average) \n | \n
| \n \n Assets carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value through OCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n Net asset value | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n - | \n \n | \n\n \n 4 | \n \n | \n
| \n \n Debt securities | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n Broker quote | \n \n \n n.a. | \n \n \n 688 | \n \n \n n.a. | \n \n \n 416 | \n \n \n n.a. | \n
| \n | \n\n \n Discounted cash flow | \n \n \n Constant Prepayment Rate | \n \n \n 28 | \n \n \n 21.11% | \n \n \n 2 | \n \n \n 1.81% | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n \n \n 98 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 799 | \n \n | \n\n \n 516 | \n \n | \n
| \n \n Other investments at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n \n Other | \n \n \n Other | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n 9 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n - | \n \n | \n\n \n 9 | \n \n | \n
| \n \n On December 31 | \n \n | \n\n | \n\n \n 799 | \n \n | \n\n \n 530 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n \n \n 91 | \n \n \n n.a. | \n
| \n \n Shares | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 3 | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 94 | \n \n \n n.a. | \n \n \n 80 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Other | \n \n \n n.a. | \n \n \n 13 | \n \n \n n.a. | \n \n \n 6 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 193 | \n \n | \n\n \n 180 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other investments at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 3,633 | \n \n | \n\n \n 3,532 | \n \n | \n
| \n \n Tax credit investments | \n \n \n Discounted cash flow | \n \n \n Discount rate | \n \n \n 823 | \n \n \n 6.72% | \n \n \n 705 | \n \n \n 6.88% | \n
| \n \n Loans | \n \n \n Other | \n \n \n n.a. | \n \n \n 82 | \n \n | \n\n \n - | \n \n | \n
| \n | \n\n | \n\n | \n\n \n 4,538 | \n \n | \n\n \n 4,237 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total assets at fair value 3 | \n \n | \n\n | \n\n \n 5,530 | \n \n | \n\n \n 4,947 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Embedded derivatives in insurance contracts | \n \n \n Discounted cash flow | \n \n \n Own credit spread | \n \n \n - | \n \n \n n.a | \n \n \n 3 | \n \n \n n.a | \n
| \n \n Other | \n \n \n Discounted cash flow | \n \n \n Other | \n \n \n - | \n \n \n n.a | \n \n \n 3 | \n \n \n n.a | \n
| \n \n Total liabilities at fair value | \n \n | \n\n | \n\n \n - | \n \n | \n\n \n 6 | \n \n | \n
For reference purposes, the valuation techniques included in the table above are described in more detail on the following pages.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5626m3758p": { "value": "The consolidated financial statements of Aegon Ltd. were approved by the Board on March 26, 2025. The financial statements will be presented to the Annual General Meeting of Shareholders on June 12, 2025. In accordance with Bermuda law, the annual accounts are not adopted by the General Meeting however pursuant to our bye-laws are discussed with the General Meeting each Annual General Meeting.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5629m3757p": { "value": "\nThe accounting policies and methods of computation applied in the consolidated financial statements are the same as those applied in the 2023 consolidated financial statements, except for the following IFRS standards and amendments that became effective for Aegon since January 1, 2024 and have been endorsed by the European Union:
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements (Issued on May 25, 2023)
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (Issued\u00a0on January 23, 2020)
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current - Deferral of effective date (Issued on July 15, 2020)
Amendments to IAS 1 Presentation of Financial Statements: Non-current liabilities with covenants
(Issued on October 31,\u00a02022)
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (issued on September 22, 2022)
The impact of the adoption of the amendments to other standards, listed above, was immaterial.
\nThe following standards and amendments to existing standards, published prior to January 1, 2025, were not early adopted\u00a0by\u00a0the Group, but will be applied in future years:
Annual Improvements Volume 11 (issued on July 18, 2024) \u2013 effective January 1, 2026
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on August 15, 2023)\u00a0\u2013 effective January 1, 2025
Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments (issued on May 30, 2024) \u2013 effective January 1, 2026
IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued on May 9, 2024) \u2013 effective January 1, 2027
IFRS 18 Presentation and Disclosure in Financial Statements (issued on April 9, 2024) \u2013 effective January 1, 2027
Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature-dependent Electricity (issued on 18 December 2024)
IFRS 18 Presentation and Disclosure in Financial Statements implements operating profit and profit before financing and income taxes subtotals in the Consolidated income statement. The standard introduces new requirements for classifying income and expenses that will impact presentation, but not impact measurement of the underlying transactions. Furthermore, the standard introduces additional disclosure requirements for Management-defined Performance Measures and reconciliation of such measures to the closest IFRS defined measure in the Notes to the consolidated financial statements.
The impact of the future amendments and standards on the financial statements is being assessed by Aegon.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5714m3779p": { "value": "\nThe accounting policies and methods of computation applied in the consolidated financial statements are the same as those applied in the 2023 consolidated financial statements, except for the following IFRS standards and amendments that became effective for Aegon since January 1, 2024 and have been endorsed by the European Union:
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements (Issued on May 25, 2023)
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (Issued\u00a0on January 23, 2020)
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current - Deferral of effective date (Issued on July 15, 2020)
Amendments to IAS 1 Presentation of Financial Statements: Non-current liabilities with covenants
(Issued on October 31,\u00a02022)
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (issued on September 22, 2022)
The impact of the adoption of the amendments to other standards, listed above, was immaterial.
\nThe following standards and amendments to existing standards, published prior to January 1, 2025, were not early adopted\u00a0by\u00a0the Group, but will be applied in future years:
Annual Improvements Volume 11 (issued on July 18, 2024) \u2013 effective January 1, 2026
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on August 15, 2023)\u00a0\u2013 effective January 1, 2025
Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments (issued on May 30, 2024) \u2013 effective January 1, 2026
IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued on May 9, 2024) \u2013 effective January 1, 2027
IFRS 18 Presentation and Disclosure in Financial Statements (issued on April 9, 2024) \u2013 effective January 1, 2027
Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature-dependent Electricity (issued on 18 December 2024)
IFRS 18 Presentation and Disclosure in Financial Statements implements operating profit and profit before financing and income taxes subtotals in the Consolidated income statement. The standard introduces new requirements for classifying income and expenses that will impact presentation, but not impact measurement of the underlying transactions. Furthermore, the standard introduces additional disclosure requirements for Management-defined Performance Measures and reconciliation of such measures to the closest IFRS defined measure in the Notes to the consolidated financial statements.
The impact of the future amendments and standards on the financial statements is being assessed by Aegon.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1022m1011p": { "value": "\nThe consolidated financial statements include the financial information of Aegon Ltd. and its subsidiaries. Subsidiaries (including consolidated structured entities) are entities over which Aegon has control.
The subsidiary\u2019s assets, liabilities, contingent liabilities, and non-controlling interests are measured at fair value on the acquisition date (unless specific recognition or measurement exceptions apply under IFRS 3) and are subsequently accounted for in accordance with the Group\u2019s accounting policies, which is consistent with IFRS. Intra-group transactions, including Aegon Ltd. shares held by subsidiaries, which are recognized as treasury shares in equity, are eliminated. Intra-group losses may indicate an impairment that requires \u00a0recognition in the consolidated financial statements. Non-controlling interests are initially stated at their share in the fair value of the net assets on the acquisition date and subsequently adjusted for the non-controlling share in changes in the subsidiary\u2019s equity.
Subsidiaries are deconsolidated when control ceases to exist. Any difference between the net proceeds plus the fair value of any retained interest and the carrying amount of the subsidiary including non-controlling interests is recognized in the income statement.
\nInvestment funds managed by the Group in which the Group holds an interest are consolidated in the financial statements if the Group controls the investee. In assessing control, all interests held by the Group in the fund are considered, regardless of whether the financial risk related to the investment is borne by the Group or by the policyholders (unless a direct link between the policyholder and the fund can be assumed).
In determining whether Aegon has power over an investment fund all facts and circumstances are considered, including the\u00a0following:
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\u00a0voting 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).
Exposure or rights to variability of returns can be the result of, for example:
Investments where Aegon bears the risk;
Aegon's investments where policyholders bear the risk;
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).
Investment funds where Aegon acts as an agent are not consolidated due to lack of control of the funds. In particular, for\u00a0some separate accounts, the independent Board of Directors has substantive rights and therefore Aegon does not have power over these separate accounts but acts as an agent.
For limited partnerships, the assessment takes into account Aegon\u2019s legal position (i.e. limited partner or general partner) and\u00a0any substantive removal rights held by other parties. Professional judgment is applied concerning the substantiveness of the\u00a0removal rights and the magnitude of the exposure to variable returns, leading to the conclusion that Aegon controls some, but\u00a0not all, of the limited partnerships in which it participates.
Upon consolidation of an investment fund, a liability is recognized to the extent that the Group is legally obliged to buy back participations held by third parties. The liability is presented in the consolidated financial statements as investment contracts. Where no repurchase obligation exists, the participations held by third parties are presented as non-controlling interests in\u00a0equity. The assets allocated to participations held by third parties or by the Group on behalf of policyholders are presented in\u00a0the consolidated financial statements as investments.
Equity instruments issued by the Group that are held by investment funds are eliminated on consolidation. However, the\u00a0elimination is reflected in equity and not in the measurement of the related financial liabilities toward policyholders or\u00a0other third parties.
\nFor structured entities as defined in IFRS 12, the tests and indicators to assess control provided by IFRS 10 are more focused on the purpose and design of the investee (with relation to the relevant activities that most significantly affect the structured entity) and the exposure to variable returns, which for structured entities lies in interests through for example derivatives, and will not be focused on entities that are controlled by voting rights.
Structured entities that are consolidated include affiliated captive insurance companies (captives) with which Aegon enters into reinsurance agreements for risk and capital management purposes. All external financing provided to captives to support statutory reserves is presented as Borrowings to the extent that it has been funded. Letters of credit issued by third parties provided to captives to provide collateral to affiliated insurers are disclosed in the Commitments and contingencies note. These letters of credit have been provided by third parties for the benefit of the affiliated company whose liabilities are\u00a0reinsured.
Structured entities that are not consolidated include general account investments in non-affiliated structured entities that\u00a0are\u00a0used for investment purposes.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3476m2921p": { "value": "\nThe consolidated financial statements include the financial information of Aegon Ltd. and its subsidiaries. Subsidiaries (including consolidated structured entities) are entities over which Aegon has control.
The subsidiary\u2019s assets, liabilities, contingent liabilities, and non-controlling interests are measured at fair value on the acquisition date (unless specific recognition or measurement exceptions apply under IFRS 3) and are subsequently accounted for in accordance with the Group\u2019s accounting policies, which is consistent with IFRS. Intra-group transactions, including Aegon Ltd. shares held by subsidiaries, which are recognized as treasury shares in equity, are eliminated. Intra-group losses may indicate an impairment that requires \u00a0recognition in the consolidated financial statements. Non-controlling interests are initially stated at their share in the fair value of the net assets on the acquisition date and subsequently adjusted for the non-controlling share in changes in the subsidiary\u2019s equity.
Subsidiaries are deconsolidated when control ceases to exist. Any difference between the net proceeds plus the fair value of any retained interest and the carrying amount of the subsidiary including non-controlling interests is recognized in the income statement.
\nFor structured entities as defined in IFRS 12, the tests and indicators to assess control provided by IFRS 10 are more focused on the purpose and design of the investee (with relation to the relevant activities that most significantly affect the structured entity) and the exposure to variable returns, which for structured entities lies in interests through for example derivatives, and will not be focused on entities that are controlled by voting rights.
Structured entities that are consolidated include affiliated captive insurance companies (captives) with which Aegon enters into reinsurance agreements for risk and capital management purposes. All external financing provided to captives to support statutory reserves is presented as Borrowings to the extent that it has been funded. Letters of credit issued by third parties provided to captives to provide collateral to affiliated insurers are disclosed in the Commitments and contingencies note. These letters of credit have been provided by third parties for the benefit of the affiliated company whose liabilities are\u00a0reinsured.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3477m2922p": { "value": "\nAegon\u2019s consolidated financial statements are presented in euros. Items included in the financial statements of individual group companies are recorded in their respective functional currency which is the currency of the primary economic environment in which each entity operates. Transactions in foreign currencies are initially recorded at the exchange rate prevailing at the date of the transaction.
\nOn consolidation, the financial statements of group entities with a foreign functional currency are translated to euros, the\u00a0currency in which the consolidated financial statements are presented. Assets and liabilities are translated at the closing rates on the reporting date. Income, expenses and capital transactions (such as dividends) are translated at average exchange rates or at the prevailing rates on the transaction date, if more appropriate. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are translated at the closing rates on the reporting date.
The resulting exchange differences are recognized in the \"foreign currency translation reserve,\" which is part of shareholders\u2019 equity. On disposal of a foreign entity the related cumulative exchange differences included in the reserve are recognized in\u00a0the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3478m2923p": { "value": "\nInsurance contracts are contracts under which the Group accepts a significant insurance risk \u2013 other than a financial risk \u2013 from a policyholder by agreeing to compensate the beneficiary on the occurrence of an uncertain future event by which he or she will be adversely affected. Significant insurance risk is\u00a0determined on a present-value basis, where at least one scenario with commercial substance can be identified in which the\u00a0Group has to pay significant additional benefits. For example, Aegon defines an additional benefit on death of at least 5% as significant. Instances where additional benefits are less than 5% will be considered on a case-by-case basis, taking into account all the\u00a0characteristics of the contract. Insurance contracts include products that provide policyholders with the option to take out insurance coverage at predetermined prices, provided this option is shown to have commercial substance.
Contracts that do not meet the definition of insurance contracts are accounted for as financial instruments and discussed in note 2.8 Investment contracts with discretionary participating features.
\nAt inception, the following components are separated from an insurance contract and accounted for as if they were standalone financial instruments:
Embedded derivatives whose economic characteristics and risks are not closely related to those of the host contract, and\u00a0whose terms would not meet the definition of an insurance contract as a standalone instrument; and
Investment components (i.e. amounts that an insurance contract requires Aegon to repay to a policyholder, even if the\u00a0insured event does not occur) that are distinct. In other words, investment components that:
Do not meet the definition of an investment contract with discretionary participation features;
Are not highly interrelated with the insurance component; and
For which contracts with equivalent terms are sold, or could be sold, separately in the same market or jurisdiction.
Promises to transfer to a policyholder distinct goods or services other than insurance contract services, are also separated from the host contract and accounted for as a service contract.
Aegon has not identified any components of the insurance contracts recognized at the balance sheet date that require separation when publishing these financial statements.
\nInsurance contracts are grouped together for measurement and income recognition purposes. The groups are established at\u00a0initial recognition and are not reassessed subsequently.\u00a0
\nAegon classifies contracts as belonging to one portfolio, when they are subject to similar risks and are managed together.
When identifying similar risks, Aegon considers all insurance and financial risks that are transferred from the policyholder
to\u00a0the Group. This does not include lapse risk or expense risk, as these are not risks that a policyholder transfers to an insurer. Generally, contracts in the same product line are included within the same portfolio if they are managed together, and contracts in different product lines with dissimilar risks are included in different portfolios.\u00a0
To be grouped together, contracts must be managed together from the perspective of either the management of Aegon Ltd. or the management of its operating segments. Information that is used to assess how risks are managed includes Aegon\u2019s internal management reporting, as well as asset-liability management and asset allocation strategies.
\nContracts within a portfolio are segregated into:
Groups of insurance contracts that are onerous at initial recognition.\u00a0
Groups of insurance contracts that are not onerous at initial recognition, subdivided into:
\nGroups of insurance contracts that have no significant possibility of becoming onerous subsequently; and
A group of remaining contracts in the portfolio, if any.
Aegon uses two approaches to identify groups of contracts. The first approach consists of a bottom-up assessment, in which contracts are grouped together on a contract-by-contract basis by considering the expected profitability of each contract. Alternatively, the grouping assessment can be completed at a higher level of aggregation if, based on reasonable and supportable information, Aegon concludes that a set of contracts will, by definition, all be in the same group.\u00a0
Both approaches involve qualitative factors, quantitative factors, or a combination of both; for example, product pricing, assumption setting reviews, reserving, key performance indicators (such as the market-consistent value of the new business
and\u00a0expected loss ratios) and asset liability management and hedging strategies.
In assessing whether a profitable group of contracts could subsequently become onerous, Aegon considers the size of\u00a0the estimated profit at inception and its sensitivity to changes in the underlying assumptions. Typically, Aegon expects that\u00a0any insurance contract may become lossmaking if the insured event occurs.
If contracts within a portfolio would fall into different groups only because law or regulation specifically constrains Aegon\u2019s practical ability to set a different price or level of benefits for policyholders with different characteristics, the contracts are included in the same group.
\nAegon follows a quarterly reporting frequency on a locked-in period-to-date basis, as opposed to a year-to-date basis, and\u00a0therefore groups contracts into quarterly cohorts. New contracts issued in the same quarter and belonging to the same group will be measured together. After the quarter end, the cohort is closed, and the cohort will be treated as \"in force\" in the subsequent quarterly reporting periods.
\nA group of insurance contracts is recognized from the earliest of the following dates: the beginning of the coverage period, the\u00a0date when the first payment from a policyholder in the group of insurance contracts becomes due, and the date when the\u00a0group of insurance contracts becomes onerous.
\nInsurance acquisition cash flows arise from selling, underwriting, or starting a group of insurance contracts. These cash flows comprise not only the incremental costs of originating insurance contracts but also other (in)direct costs and include cash flows relating to both successful and unsuccessful acquisition efforts such as commissions and underwriting expenses that are directly attributable to the portfolio. Insurance revenue related to insurance acquisition cash flows is recognized on a pure passage of\u00a0time basis.
\nFor presentation and analysis purposes, Aegon distinguishes between life and non-life insurance contracts. Life insurance contracts comprise insurance contracts for which the primary insured risk is life contingent, as well as long-term-care insurance products in the Americas. Non-life insurance contracts include fire insurance, motor insurance, general liability insurance, and disability and sickness insurance.
For measurement and income recognition purposes, Aegon distinguishes between insurance contracts with and without direct participating features. Contracts are classified at the initial recognition date and not subsequently reassessed. Aegon\u2019s\u00a0non-life business consists entirely of insurance contracts without direct participating features, while Aegon\u2019s life insurance business includes both types of insurance contracts.
While the initial measurement of both types of insurance contracts is the same, the subsequent accounting differs. The\u00a0Variable Fee Approach is applied to life insurance contracts with direct participating features. Other life and non-life insurance contracts are accounted for under the General Measurement Model, unless Aegon has elected to apply the\u00a0Premium Allocation Approach to groups of these contracts.
\nInsurance contracts with direct participating features are defined as life insurance contracts for which, at inception:
The contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items;
Aegon expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items, and\u00a0
Aegon expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items.
In determining whether a pool of underlying items has been clearly identified to the policyholder, Aegon considers all contractual terms and conditions as well as other policyholder communications. Aegon does not need to hold the identified pool of underlying items for a product to qualify as an insurance contract with direct participating features, nor does the existence of Aegon\u2019s discretion to vary the amounts paid to the policyholder preclude qualification. However, the link between policyholder benefits and underlying items must be enforceable and Aegon must not have the ability to change the underlying items with retrospective effect.
Once the presence of a clearly identified pool of underlying items has been established, Aegon uses a methodology for product classification that builds on a two-step approach with an initial assessment based on product characteristics, followed by a quantitative assessment where the former is not conclusive.
The initial assessment based on product characteristics is performed using multiple qualitative indicators. For example, Aegon considers whether a contract includes substantial contractual profit-sharing rates and the degree to which these can subsequently be reset. It also considers the extent to which asset management fees and other charges are commensurate with the services provided and in line with market terms, and whether a product guarantees a minimum return on investment.
If the qualitative step is not conclusive on its own, the product undergoes quantitative analysis. Different calculation methods are used, depending on the product characteristics and the market conditions at the inception of the contract.\u00a0
\nThe policyholder\u2019s share in the fair value returns is assessed by comparing the expected total return on the underlying items, net of the asset management fees, with the expected payments to the policyholder that are based on those underlying items. Variable fees and charges that cover multiple services are split into an insurance component and investment management component, with only the latter being deducted from total returns. As a critical judgment, when\u00a0the policyholder's share in the fair value returns is within a range between 50%-70%, Aegon applies judgment when\u00a0considering qualitative and quantitative factors in product classification.
The assessment of the variability in policyholder benefits often requires the use of probability-weighted models, factoring\u00a0all scenarios where returns are impacted by the allocation of clearly identifiable assets, variable fees and guarantees. The determination of one scenario where there is no variability does not automatically disqualify a product for\u00a0the\u00a0variable fee approach but is assessed together with the scenarios in which the guarantee is not in-the-money at\u00a0the\u00a0expected termination date of the contract.
Examples of insurance contracts with direct participating features include unit-linked contracts issued by Aegon UK and Aegon Spain, and variable annuities issued in the Americas.
\nThough for insurance contracts without direct participating features there is no link between underlying assets and the insurance contract, there are products where Aegon provides investment-return services. A product is considered to provide an investment-return service if, and only if, the following apply:
The contract contains a non-distinct investment component or the policyholder has a right to withdraw an amount under the\u00a0policy;
Aegon expects that this amount will include an investment return; and\u00a0
Aegon expects to perform investment activity to generate that investment return.
Products with investment-return services include indexed universal life, fixed deferred annuities, fixed indexed annuities and registered index linked annuities.
Insurance contracts without direct participating features include all non-life insurance products issued by Aegon, as well as term insurance, whole life, fixed annuities, long term care insurance contracts, and US-style universal life products issued in the Americas and Asia.
\nOn initial recognition, Aegon measures a group of contracts at a risk-adjusted, current, and probability-weighted estimate of the present value of the future cash flows (\"fulfillment cash flows\") plus or minus the unearned profit on the group of contracts (\"contractual service margin\").\u00a0
\nThe fulfillment cash flows reflect Aegon\u2019s view of the current condition at the reporting date, consistent with observable market prices and considering all contractual terms and conditions with commercial substance that are within the contract boundary. Future changes in legislation that would change or discharge a present obligation or create new obligations under existing contracts are only considered when the legislation is substantively enacted.
Fulfillment cash flows also include discretional cash flows, for instance for US universal life type products, that are partially linked to the performance of underlying assets based on the crediting policy that is set by the discretion of the company.\u00a0 Aegon interprets that, in most cases, the stochastic technique is needed to capture the non-linear characteristic of cash flows, especially when there is material financial guarantee or dynamic lapse behavior associated with the discretional cash flows. Aegon uses the stochastic technique to apply risk-neutral scenarios that are calibrated to replicate the market price of market variables such as equity or interest rates. Such a calibration ensures that the probability-weighted average of payoffs on different scenarios discounted at risk-free rates will be equal to the market price of financial security with the same payoffs.
The methods used to calculate the fulfillment cash flows and the process to estimate the inputs to those methods are\u00a0discussed in note 29.3 Critical judgements and estimates.
\nThe contractual service margin represents the unearned profit Aegon will recognize as it provides insurance contract services in the future.\u00a0For onerous insurance contracts, the calculation results in a loss that is recognized in the income statement immediately and for which a corresponding loss component is established as part of the insurance liabilities.
\nCash flows are within the boundary of an insurance contract if they arise from rights and obligations that exist during the\u00a0period in which Aegon can either compel the policyholder to pay premiums or has a substantive obligation to provide insurance contract services to the policyholder.
Examples of cash flows within the contract boundary by Aegon\u2019s interpretation are premiums and related cash flows, claim payments (including reported, incurred and all future claims for which Aegon has\u00a0 substantive obligation), payments to policyholders such as payments that vary depending on underlying items or resulting from options and guarantees, claim handling costs, policy administration and maintenance cost, cost for performing investment activities, investment return services or investment related services and allocation of fixed and variable overheads directly attributable to fulfilling insurance contracts. Aegon interprets directly attributable overhead expenses consistent with the principle of Solvency II regarding insurance service obligation. Premiums receivable from the intermediary are included as future cash flows within the contract boundary.
In determining whether a contract can be repriced, all insurance and financial risks that are transferred from the policyholder to Aegon are considered. Risks that result from the contract itself, such as expense risk or lapse risk, are ignored. If Aegon provides investment-related services to insurance policyholders, the ability to reprice the fees or charges for these services to prevailing rates is also considered in setting the contract boundary.
In some jurisdictions, regulatory requirements limit Aegon\u2019s ability to fully reprice contracts on renewal and are therefore relevant when setting the contract boundary. Regulatory price caps that apply equally to existing and new policyholders do\u00a0not extend the contract boundary, because they do not result in a valuable policyholder renewal option.
Some contracts that have a long contract boundary based on long-term guaranteed benefits, also include policyholder options that can be repriced. For example, the contract may allow the policyholder to take out additional insurance coverage at current market rates at the time of uptake. While the policyholder option can be repriced, Aegon cannot reprice or reassess the benefits of the entire policy. Therefore, the policyholder option is considered within the long contract boundary of the host contract, provided it can reasonably be expected to be utilized.\u00a0
Contract boundaries are based on current facts and circumstances and may therefore change over time.
\nThe carrying amount of a group of insurance contracts at the end of each reporting period is the sum of the liability for remaining coverage and the liability for incurred claims. The liability for remaining coverage comprises the fulfillment cash flows related to future service allocated to that group and the contractual service margin of the group. The liability for incurred claims comprises the fulfillment cash flows related to past service allocated to the group. Cash flows that remain subject to insurance risk after the occurrence of the insured event are included in the liability for remaining coverage.
The fulfillment cash flows are remeasured at each reporting date to reflect current estimates. The measurement of the contractual service margin differs for contracts with and without direct participating features and is described below.
Some changes in the contractual service margin are offset by changes in the fulfillment cash flows, resulting in no change in\u00a0the total carrying amount of the liability for remaining coverage. To the extent that changes in the contractual service margin and changes in the fulfillment cash flows do not offset, income or expenses are recognized.
\nThe carrying amount of the contractual service margin for a group of insurance contracts without direct participating features\u00a0at the end of each reporting period is determined by adjusting the carrying amount with the effect of new contracts added to\u00a0the group, interest accrued on the contractual service margin during the period, changes in fulfillment cash flows related to\u00a0future services (except when increases in fulfillment cash flows exceed the carrying amount of contractual service margin, causing a loss, or when decreases in fulfillment cash flows are allocated to the loss component), currency exchange differences affecting the contractual service margin, and insurance revenue recognized for services provided during the\u00a0period.
\nAegon accretes interest to the contractual service margin based on either the one-year forward rate or the one-year spot-rate, derived from the discount rate curve used to estimate the present value of future cash flows that do not vary based on the\u00a0returns on any underlying items on initial recognition of the group of contracts.\u00a0
The amount of interest is calculated on a time-weighted basis, allowing for the timing of the movements in the contractual service margin over the reporting period.
\nChanges in the fulfillment cash flows that relate to future services comprise:
Experience adjustments arising from premiums received in the period that relate to future services and related cash flows, measured at the discount rates determined on initial recognition;
Changes in estimates of the present value of future cash flows in the liability for remaining coverage (other than those that\u00a0relate to the effects of the time value of the money and changes in financial risks), measured at the discount rates determined on initial recognition;
Differences between any non-distinct investment component expected to become payable in the period and the\u00a0actual\u00a0non-distinct\u00a0investment component that becomes payable in the period;
Differences between any loan to a policyholder expected to become repayable in the period and the actual loan to a\u00a0policyholder that becomes repayable in the period; and
Changes in the risk adjustment for non-financial risk that relate to future services.
The change in fulfillment cash flows that relates to future service is calculated using discount rates derived from the discount rate curve used to determine the contractual service margin on initial recognition of the group of contracts.
\nPart of the contractual service margin of a group of contracts is recognized as insurance revenue in each period to reflect the\u00a0insurance contract services provided under the group of insurance contracts in that period. The amount of revenue is determined by allocating the contractual service margin remaining at the end of the reporting period equally to each coverage unit provided in the reporting period and expected to be provided in the future.\u00a0
The numbers of coverage units in a group of contracts is determined by considering, for each contract, the quantity of the\u00a0benefits provided and its expected coverage period. Aegon concludes that the coverage period relates to insurance coverage only for business reported under the General Model when contracts do not have investment-return service, and coverage periods relates to both insurance coverage and investment return service when contracts contain investment return service. Coverage period takes account of the expected survivorship of contracts, so it allows for expected lapses and deaths. If a contract provides coverage for more than one insured event or\u00a0if\u00a0it\u00a0provides additional investment-return services, the coverage unit reflects all material benefits.
Aegon has defined coverage units that differ per product type to best reflect a product\u2019s characteristics and the nature of the\u00a0services provided to the policyholder. Insurance services are typically depicted by a metric that is based on the maximum amount that a policyholder would receive if the insured event were to occur, such as the total benefits amount or the death benefit amount. For investment-type services, coverage units are based on the total return that Aegon expects to provide the\u00a0policyholder over the lifetime of the contract.
Aegon applies the following formula to determine the amount of contractual service margin to release in each reporting period, where:
\n\nWhere:
A = coverage units provided in the period\u00a0
B = present value of coverage units to be provided in the future
The coverage units provided in the period are determined as an average of the coverage units at the beginning and end of the\u00a0quarterly reporting period. Future coverage units are discounted using rates locked-in at the initial recognition of the group of\u00a0contracts.\u00a0
More information on the coverage units is provided in note 29.3.2.1 Weighting of coverage units.
\nAegon adjusts the fulfillment cash flows for direct participating contracts to account for changes in the obligation to pay policyholders based on the fair value of underlying items, recognizing these changes in profit or loss. The contractual service margin for each group of contracts is adjusted based on new contracts, changes in fair value related to future services (using current discount rates), risk mitigation policies, changes in the loss component, currency exchange differences and insurance revenue recognition for services provided during the period.
\nChanges in Aegon\u2019s share in the fair value of the underlying items, by definition, relates to future service and is therefore adjusted according to the contractual service margin.\u00a0 The variable fee approach requires changes in fulfillment cash flows to\u00a0be booked to\u00a0the contractual service margin if they are the result of a change in the effect of the time value of money or financial risks not arising from the underlying items. Examples include the interest accrued to projected fixed benefits and expense cash flows, and the change in the value of financial guarantees.
\nThe policy on the recognition of revenue for insurance contracts with direct participating features is the same as under the\u00a0general measurement model, except that references to \u201cinvestment-return services\u201d should be read as \u201cinvestment-related services\u201d.\u00a0Furthermore, the definition of coverage period is different for contracts with direct participating features. The coverage period reflects both insurance coverage and investment-related services. For such contracts with an accumulation and payout phase, the coverage period reflects both phases of the contract to the extent that insurance coverage and investment-related services are provided in both phases.
\nFor certain groups of contracts, Aegon has a documented risk management objective and strategy for mitigating financial risk arising from insurance contracts with participating features, using derivatives, reinsurance contracts held and other FVPL financial instruments. Risk mitigation involves the hedging of one or a combination of financial risks (e.g. interest rate, financial instrument price, currency exchange rate, index of prices or rates, inflation rate) and can cover multiple groups of contracts in\u00a0different portfolios.
For these groups of contracts, Aegon does not recognize the entire change in the amount of Aegon\u2019s share of the fair value of\u00a0the underlying items and changes in fulfillment cash flows relating to future services in the contractual service margin. Instead, the change in the hedged position is recognized as part of the insurance finance expense in the income statement or\u00a0in other comprehensive income.
Prior to the reporting period, Aegon demonstrates that an economic offset exists between the above mentioned fulfilment cash flows from insurance contracts and the risk mitigating items (i.e. the values of both are generally expected to move in opposite directions because they respond in a similar way to the changes in the risk being mitigated), and demonstrates this\u00a0is\u00a0not dominated by credit risk.
\nWhen a group of insurance contracts becomes onerous, a loss component of the liability for remaining coverage for that\u00a0group is established. Except for changes in non-financial assumptions that are fully allocated to a loss component, all\u00a0subsequent changes in the fulfillment cash flows of the liability for remaining coverage are allocated on a systematic basis\u00a0between the loss component and the remaining liability for remaining coverage. No revenue is recognized for\u00a0services allocated to the loss component, as Aegon has never received compensation from the policyholder for these.
\nAegon applies the premium allocation approach to certain groups of predominantly non-life insurance contracts. These\u00a0groups of contracts mostly include products with a coverage period of one year or less. The premium allocation approach is\u00a0only applied to contracts with a longer coverage period if the Group expects that the resulting measurement would not differ materially from the result of applying the general measurement model.\u00a0
\nContracts to which the premium allocation approach is applied are grouped together using the same principles as described in paragraph (c) above, with the following modifications:
Contracts to which the premium allocation approach is applied, are assumed not to be onerous at inception, unless facts and circumstances indicate otherwise.
Contracts to which the premium allocation approach are grouped together in annual cohorts, which is more aligned with\u00a0the\u00a0nature of the products.
Insurance acquisition cash flows that relate to some (but not all) groups of contracts to which Aegon applies the premium allocation approach are expensed when incurred, provided the coverage period does not exceed 12 months.
\nGiven the time between providing each part of the coverage and the related premium, Aegon has chosen not to adjust the\u00a0liability for the remaining coverage to reflect the time-value of money and the effect of financial risk.
Aegon recognizes the liability for incurred claims of a group of insurance contracts at the amount of the fulfillment cash flows relating to incurred claims. The fulfillment cash flows are discounted at current rates unless the cash flows are expected to\u00a0be\u00a0paid in one year or less from the date the claims are incurred.
\nReinsurance contracts held are contracts entered into by Aegon in order to receive compensation for claims arising from one or more insurance contracts issued by the group. Reinsurance contracts that do not transfer insurance risk are accounted for as financial instruments or as service contracts, depending on the nature of the agreement.
To the extent possible, the accounting model applied to reinsurance contracts held is consistent with that of the underlying insurance contracts. Differences will arise when underlying contracts have direct participating features, as the variable fee approach cannot be applied to reinsurance contracts held. Furthermore, reinsurance contracts with a coverage period exceeding 12 months may not be eligible for the premium allocation approach.
Expected reinsurance recoveries include an adjustment for the risk of non-performance by the reinsurer, which is based on Aegon\u2019s credit exposure, net of collateral, and the perceived counterparty default risk.
\nSimilarly to the analysis for insurance contracts (see note 2.4\u00a0Insurance contracts), Aegon has assessed that its reinsurance contracts held do not include components that need to be separated for accounting purposes.
\nReinsurance contracts are grouped for measurement and income recognition purposes, based on the similarity of risk, the\u00a0manner in which the contracts are managed, the expected profitability of the contracts at inception, and the period in which the contracts are issued.
When grouping reinsurance contracts, Aegon considers the type of reinsurance cover received (e.g. yearly renewable term, stop loss, or coinsurance).\u00a0
A group of reinsurance contracts can comprise a single contract, for example when the contracts are managed on an\u00a0individual treaty basis.
\nAegon applies the accounting policies disclosed in note 2.4 Insurance contract for insurance contracts without direct participating features to\u00a0measure a group of reinsurance contracts held, albeit with the following modifications:
\nAegon estimates the present value of the future cash flows of the group of reinsurance contracts held, using assumptions that are consistent with those used to measure the underlying insurance contracts. The estimate includes an adjustment for the risk of non-performance by the reinsurer. This includes the potential failure of the reinsurance counterparty due to default, disputes resulting in reduced payments, current financial conditions, and credit standing of the reinsurer, the potential for these conditions to change over time, the extent to which counterparty exposure is collateralized, treaty provisions for non-performance and special features of the regulatory environment.\u00a0
\nFor treaties with open attaching periods, the cessations within the termination window (typically 90 days) are treated as a\u00a0separate contract for accounting purposes. Cessations that take place after the termination window are treated as a new contract.
\nAegon releases the CSM in the profit or loss at the end of the reporting period based on the coverage unit of the contract which is based on the quantity of benefits and expected coverage duration. To determine the coverage units, Aegon chooses a\u00a0coverage unit metric that is proportional to the risk transferred, using maximum cover as the basis for coverage units but taking into account the number of underlying direct contracts attached. The coverage unit should reflect the expected pattern of underwriting of the underlying contracts because the level of service provided depends on the number of underlying contracts in-force.
With the exception of reinsurance finance income, all other income and expenses from a group of reinsurance contracts are\u00a0presented as a single amount.
Finance income related to reinsurance contracts held is presented separately in the income statement and OCI. They are not netted with the finance expenses related to insurance contracts issued.\u00a0\u00a0
\nAegon establishes a loss recovery component for a group of reinsurance contracts, when a change in the fulfillment cash flows that relates to future services does not adjust the contractual service margin. It reflects the income recognized in the\u00a0income statement to offsets the reinsured loss reported on the underlying insurance contracts.
The adjusted amount, and resulting income, is determined by multiplying:
The loss recognized on the group of underlying insurance contracts; and
The recovery percentage, which is the percentage of claims on the group of underlying insurance contracts that Aegon expects to recover from the reinsurance contracts held.
The calculation of the recovery percentage is based on discounted claims and recovery amounts, using current discount rates. No allowance is made for reinsurance non-performance risk, and any risk adjustment for non-financial risks is excluded from the calculation.
If an onerous group of insurance contracts is only partially reinsured, systematic and rational allocation methods are used to\u00a0determine the portion of subsequent movements in the loss component that relates to insurance contracts covered by the\u00a0group of reinsurance contracts held.
\nAegon recognizes insurance revenue as it provides services under groups of insurance contracts and under groups of contracts with discretionary participating features.
The total insurance revenue recognized over the duration of a group of contracts is equal to the amount of premiums received, adjusted for a financing effect and excluding any non-distinct investment components. For contracts with direct participating features, it includes the variable fees that Aegon expects to receive. Reinstatement premiums are included in\u00a0insurance revenue, when reinstatement is not mandatory under the terms of the contract but at the discretion of the\u00a0policyholder. Ceding commissions paid by Aegon on inward reinsurance are deducted from insurance revenue, unless they\u00a0are contingent on future claims.
The revenue recognized in the period represents the total of the changes in the liability for remaining coverage that relate to services for which the Group expects to receive compensation and includes:
The release of contractual service margin for services provided in the period;
Changes in the risk adjustments for non-financial risk that do not relate to future service, excluding amounts allocated to\u00a0the\u00a0loss component;
The claims and other insurance service expenses expected to be incurred in the period, excluding amounts allocated to\u00a0the\u00a0loss component;
Other amounts, such as experience adjustments for premium receipts that do not relate to future service and income tax that is specifically chargeable to the policyholder.
In addition, the insurance revenue recognized in the period includes an allocation of the portion of the premiums that are related to recovering insurance acquisition cash flows. The allocation is based on the passage of time, without interest accumulation. The same amount is also recognized as insurance service expenses.\u00a0Insurance service expenses arise as Aegon provides coverage and other services under issued insurance contracts and investment contracts with discretionary participating features. It comprises:
The incurred claims, excluding repayments of non-distinct investment components, and other incurred insurance service expenses;
Adjustments to the liabilities for incurred claims that do not arise from the effects of the time value of money, financial risk, and changes therein;
Amortization of insurance acquisition cash flows;
Losses on onerous contracts and the reversals of such losses; and
Impairment losses on assets for insurance acquisition cash flows and reversals of such impairment losses.
Insurance finance expenses comprise the change in the carrying amount of the group of insurance contracts or reinsurance contracts arising from the effect of the time value of money and changes in the time value of money, as well as the effect of financial risk and changes in financial risk. It also includes the changes in the measurement of group of insurance contracts that are caused by changes in the value of underlying items (excluding additions and withdrawals). \u00a0
\nFinancial risk identified by\u00a0Aegon can be one or more of the following:
Credit risk
Fluctuations in equity, real estate and capital markets
Interest rate risk
Currency exchange risk
As an example of variables not specific to a party to the contract, assumptions about inflation are considered to relate to financial risk, to the extent that they are based on an index of prices or on prices of assets with inflation-linked returns. Assumptions about inflation that are based on Aegon\u2019s own expectations of specific price changes do not relate to financial risk and are considered to be actuarial assumptions.
For contracts with discretionary participating features, Aegon uses the basis on which, at inception, it expected to determine its commitment under the contract to distinguish between the effect of changes in assumptions that relate to financial risk on that commitment and the effect of discretionary changes to that commitment (which adjust the contractual service margin).
Aegon considers, per portfolio, whether the risk adjustment for financial risks should be disaggregated in an insurance service component and an insurance finance component, taking into account the extent to which the carrying amount of the is affected by changes in interest rate and other financial risks. The changes in the risk adjustment for non-financial risk are fully attributed to insurance services.\u00a0
\nAegon disaggregates insurance finance expenses between profit or loss and other comprehensive income for insurance contracts without direct participating features issued in the United States, insurance contracts issued in Asia that are internally reinsured in the United States, certain life insurance products in Spain and reinsurance contracts held.
The amount of insurance finance expenses included in profit or loss is determined by a systematic allocation of the expected total insurance finance income and expenses over the duration of the group of contracts, using the following rates:
Discount rates determined at the date of initial recognition of the group of contracts;\u00a0
A rate that allocates the remaining revised expected finance income or expenses over the remaining duration of the group of contracts at a constant rate (expected yield approach); or
For contracts that use a crediting rate to determine amounts due to the policyholders using an allocation that is based on the amounts credited in the period and expected to be credited in future periods (projected crediting rate approach).
The expected yield approach and projected crediting rate approach are applied to designated groups of contracts for which changes in financial assumptions have a substantial effect on the amounts paid by the policyholder (\"indirect participating products\"). Indirect participating products include variable annuity products that do not qualify for the variable fee approach due to minimum guarantees. US-style universal life contracts are not classified as indirect participating products because Aegon considers policyholder benefits to be insufficiently impacted by changes in financial assumptions.\u00a0These products are measured under the general measurement model.
In the United States, Aegon has elected to apply the projected crediting rate approach to indexed universal life and fixed indexed annuities. Other indirect participating contracts, such as variable universal life and fixed annuities, are accounted for\u00a0under the expected yield approach.
\nContracts issued by the Group that do not transfer significant insurance risk but do transfer financial risk from the\u00a0policyholder to the Group are accounted for as investment contracts.
Certain investment contracts, such as with profit contracts, have participation features whereby the policyholder has the right to receive potentially significant additional benefits which are based on the performance of a specified pool of investment contracts, specific investments held by the Group or on the issuer\u2019s net result. If the Group has discretion over the amount or timing of the distribution of the returns to policyholders, the investment contract liability is measured based on the accounting principles that apply to insurance contracts with similar features.
Some unitized investment contracts provide policyholders with the option to switch between funds with and without discretionary participation features. The entire contract is accounted for as an investment contract with discretionary participation features if there is evidence of actual switching resulting in discretionary participation benefits that are a\u00a0significant part of the total contractual benefits.
Investment contracts without discretionary participation features are considered and accounted for as financial liabilities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInsuranceContracts", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f11475m5703p": { "value": "\nReinsurance contracts held are contracts entered into by Aegon in order to receive compensation for claims arising from one or more insurance contracts issued by the group. Reinsurance contracts that do not transfer insurance risk are accounted for as financial instruments or as service contracts, depending on the nature of the agreement.
To the extent possible, the accounting model applied to reinsurance contracts held is consistent with that of the underlying insurance contracts. Differences will arise when underlying contracts have direct participating features, as the variable fee approach cannot be applied to reinsurance contracts held. Furthermore, reinsurance contracts with a coverage period exceeding 12 months may not be eligible for the premium allocation approach.
Expected reinsurance recoveries include an adjustment for the risk of non-performance by the reinsurer, which is based on Aegon\u2019s credit exposure, net of collateral, and the perceived counterparty default risk.
\nSimilarly to the analysis for insurance contracts (see note 2.4\u00a0Insurance contracts), Aegon has assessed that its reinsurance contracts held do not include components that need to be separated for accounting purposes.
\nReinsurance contracts are grouped for measurement and income recognition purposes, based on the similarity of risk, the\u00a0manner in which the contracts are managed, the expected profitability of the contracts at inception, and the period in which the contracts are issued.
When grouping reinsurance contracts, Aegon considers the type of reinsurance cover received (e.g. yearly renewable term, stop loss, or coinsurance).\u00a0
A group of reinsurance contracts can comprise a single contract, for example when the contracts are managed on an\u00a0individual treaty basis.
\nAegon applies the accounting policies disclosed in note 2.4 Insurance contract for insurance contracts without direct participating features to\u00a0measure a group of reinsurance contracts held, albeit with the following modifications:
\nAegon estimates the present value of the future cash flows of the group of reinsurance contracts held, using assumptions that are consistent with those used to measure the underlying insurance contracts. The estimate includes an adjustment for the risk of non-performance by the reinsurer. This includes the potential failure of the reinsurance counterparty due to default, disputes resulting in reduced payments, current financial conditions, and credit standing of the reinsurer, the potential for these conditions to change over time, the extent to which counterparty exposure is collateralized, treaty provisions for non-performance and special features of the regulatory environment.\u00a0
\nFor treaties with open attaching periods, the cessations within the termination window (typically 90 days) are treated as a\u00a0separate contract for accounting purposes. Cessations that take place after the termination window are treated as a new contract.
\nAegon releases the CSM in the profit or loss at the end of the reporting period based on the coverage unit of the contract which is based on the quantity of benefits and expected coverage duration. To determine the coverage units, Aegon chooses a\u00a0coverage unit metric that is proportional to the risk transferred, using maximum cover as the basis for coverage units but taking into account the number of underlying direct contracts attached. The coverage unit should reflect the expected pattern of underwriting of the underlying contracts because the level of service provided depends on the number of underlying contracts in-force.
With the exception of reinsurance finance income, all other income and expenses from a group of reinsurance contracts are\u00a0presented as a single amount.
Finance income related to reinsurance contracts held is presented separately in the income statement and OCI. They are not netted with the finance expenses related to insurance contracts issued.\u00a0\u00a0
\nAegon establishes a loss recovery component for a group of reinsurance contracts, when a change in the fulfillment cash flows that relates to future services does not adjust the contractual service margin. It reflects the income recognized in the\u00a0income statement to offsets the reinsured loss reported on the underlying insurance contracts.
The adjusted amount, and resulting income, is determined by multiplying:
The loss recognized on the group of underlying insurance contracts; and
The recovery percentage, which is the percentage of claims on the group of underlying insurance contracts that Aegon expects to recover from the reinsurance contracts held.
The calculation of the recovery percentage is based on discounted claims and recovery amounts, using current discount rates. No allowance is made for reinsurance non-performance risk, and any risk adjustment for non-financial risks is excluded from the calculation.
If an onerous group of insurance contracts is only partially reinsured, systematic and rational allocation methods are used to\u00a0determine the portion of subsequent movements in the loss component that relates to insurance contracts covered by the\u00a0group of reinsurance contracts held.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForReinsuranceExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f11452m5695p": { "value": "\nAegon recognizes insurance revenue as it provides services under groups of insurance contracts and under groups of contracts with discretionary participating features.
The total insurance revenue recognized over the duration of a group of contracts is equal to the amount of premiums received, adjusted for a financing effect and excluding any non-distinct investment components. For contracts with direct participating features, it includes the variable fees that Aegon expects to receive. Reinstatement premiums are included in\u00a0insurance revenue, when reinstatement is not mandatory under the terms of the contract but at the discretion of the\u00a0policyholder. Ceding commissions paid by Aegon on inward reinsurance are deducted from insurance revenue, unless they\u00a0are contingent on future claims.
The revenue recognized in the period represents the total of the changes in the liability for remaining coverage that relate to services for which the Group expects to receive compensation and includes:
The release of contractual service margin for services provided in the period;
Changes in the risk adjustments for non-financial risk that do not relate to future service, excluding amounts allocated to\u00a0the\u00a0loss component;
The claims and other insurance service expenses expected to be incurred in the period, excluding amounts allocated to\u00a0the\u00a0loss component;
Other amounts, such as experience adjustments for premium receipts that do not relate to future service and income tax that is specifically chargeable to the policyholder.
In addition, the insurance revenue recognized in the period includes an allocation of the portion of the premiums that are related to recovering insurance acquisition cash flows. The allocation is based on the passage of time, without interest accumulation. The same amount is also recognized as insurance service expenses.\u00a0Insurance service expenses arise as Aegon provides coverage and other services under issued insurance contracts and investment contracts with discretionary participating features. It comprises:
The incurred claims, excluding repayments of non-distinct investment components, and other incurred insurance service expenses;
Adjustments to the liabilities for incurred claims that do not arise from the effects of the time value of money, financial risk, and changes therein;
Amortization of insurance acquisition cash flows;
Losses on onerous contracts and the reversals of such losses; and
Impairment losses on assets for insurance acquisition cash flows and reversals of such impairment losses.
Fees and commissions from investment management services and mutual funds are performed on an ongoing basis evenly throughout the year and are accounted for monthly (1/12 of the contractual agreement). Performance fees may be charged to\u00a0policyholders in the event of outperformance in the investments compared to predefined benchmark levels. They are accounted for only when specified hurdles for generating performance fees are achieved i.e. when the full performance obligation is met.
Aegon acts also as an insurance broker selling insurance contracts of other insurance companies to policyholders and receiving direct sales commission as well as commissions over time when the same policyholders renew their contracts. These commissions are recognized only when received as policyholders\u2019 renewals are not certain enough to be recorded upfront.
Initial fees and front-end loadings paid by policyholders and other clients for future investment management services related to investment contracts without discretionary participation features are deferred and recognized as revenue when the related services are rendered.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3480m2925p": { "value": "\nFinancial assets are recognized when Aegon becomes a party to the contractual provisions of the instrument.\u00a0Regular way purchase or sale of financial assets is recognized using trade date accounting.
Financial assets are classified for accounting purposes depending on the cash flow characteristics and the business model under which they were purchased.\u00a0
The Group determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective. The Group\u2019s business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios\u00a0and is based on observable factors, such as:\u00a0
How the performance of the business model and the financial assets held within that business model are evaluated and reported to the Group\u2019s 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\u2019s assessment.
In making the assessment of the contractual cash flows, Aegon considers whether they are consistent with a basic lending arrangement i.e. interest includes only consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is consistent with a basic lending arrangement. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.
Aegon presents its financial assets as Investments, Derivatives or Receivables and other assets in its Statement of Financial Position.
\nThe Group classifies debt instruments at fair value through profit and loss (FVPL) mandatorily if the business model is not to\u00a0hold the instrument to collect contractual cash flows (or hold to collect and sell the asset) or if the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, or contractual cash flows are\u00a0not solely payments of principal and interest (SPPI). Examples of assets that fail the SPPI test in Aegon\u2019s portfolio are investments in funds that are classified as debt and investments in tranches of contractually linked instruments where the\u00a0credit risk of the tranche is greater than the underlying portfolio\u2019s credit risk.
Within its European insurance entities Aegon holds investments in debt instruments which would not be mandatorily measured at FVPL, however they are designated at FVPL to minimize accounting mismatches with the insurance and investment contract liabilities.
Aegon has classified most of its loan portfolios, and all receivables as measured at amortized cost because they are held to collect contractual cash flows, which cash flows meet the SPPI criteria. Other debt instruments, held in a business model to collect contractual cash flows and to be sold when asset liability management strategy requires, and meet the SPPI criteria are classified as measured at fair value through other comprehensive income (FVOCI).
\nEquity instruments are classified as financial assets measured at\u00a0FVPL. Aegon opted to measure a small portion of its equity instruments at FVOCI.
\nAll derivatives are carried at FVPL as assets when fair value is positive and as liabilities when fair value is negative.
Aegon designates certain derivatives as hedging instruments in either:
Hedges of the fair value of recognized assets or liabilities or firm commitments (fair value hedges);
Hedges of highly probable future cash flows attributable to a recognized asset or liability or a highly probable forecast transaction (cash flow hedges); or
Hedges of a net investment in a foreign operation (net investment hedges).
Aegon documents, at the inception of the hedge, the relationship between hedged items and hedging instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Additional details on derivatives and hedge accounting is disclosed in note 20 Derivatives.
\nAt initial recognition, Aegon measures a financial asset at its fair value plus or minus, in the case of a financial asset not at FVPL, transaction costs that are incremental and directly attributable to the acquisition or issue of the financial asset or financial liability, such as fees and commissions. Immediately after initial recognition, an expected credit loss allowance (ECL) is recognized for financial assets measured at amortized cost and investments in debt instruments measured at FVOCI, as described in note 4.2.6 Expected credit losses, which results in an accounting loss being recognized in profit or loss when an asset is newly originated.
\nInterest revenue from financial assets measured at amortized cost or FVOCI is included in \"Interest revenue on financial instruments calculated using the effective interest rate method\".
Movements in the carrying amount of FVOCI debt instruments are taken through OCI, except for the recognition of impairment\u00a0gains or losses, interest revenue and foreign exchange gains and losses on the instrument\u2019s amortized cost that are recognized as profit or loss. When the debt instrument is derecognized, the cumulative gain or loss previously recognized in\u00a0OCI is reclassified from equity to profit or loss and recognized in \"Net Investment result.\" In the case of equity instruments measured at FVOCI the cumulative gain or loss would never be recycled in profit or loss.
When the debt instrument is derecognized, the cumulative gain or loss previously recognized in\u00a0OCI is reclassified from equity to profit or loss and recognized in \"Net Investment result\".
\nGains and losses on financial instruments at FVPL are included in the Results from financial transactions line in the\u00a0consolidated income statement, unless the financial instrument has been designated as a hedging instrument in a cash flow hedge or a hedge of a net investment in a foreign operation, when the effective portion of the fair value change is recognized in other comprehensive income. Fair value movements of fair value hedge instruments are offset by the fair value movements of the hedged item, and the resulting hedge ineffectiveness, if any, is included in result from financial transactions.
Interest revenue from debt securities at FVPL and derivatives is presented separately as \"Interest\u00a0revenue from financial instruments measured at FV.\"
\nIn the case of equity instruments measured at FVOCI the cumulative fair value gain or loss would never be recycled in\u00a0profit\u00a0or\u00a0loss.
\nWhen the contractual rights to the asset\u2019s cash flows expire, or an obligation arises to pass on all received cash flows without delay, or the asset is transferred with substantially all the risks and rewards of ownership or control over the asset is lost, Aegon derecognizes the financial asset.
When a novation takes place Aegon assesses whether the derecognition criteria are met. Aegon does not derecognize the\u00a0contract only if:
The old counterparty and new counterparty share the same parent company; and
Contract characteristics of the old contract and the new contract are the same; and
The risk profile of both contract parties is similar (either by both having a parental guarantee or both entities having an\u00a0investment grade rating)
On derecognition, the difference between the disposal proceeds and the carrying amount is recognized in the income statement within the results from financial transactions.
\nAegon sometimes renegotiates or otherwise modifies the contractual cash flows of financial assets. When this happens, Aegon assesses whether the new terms are substantially different to the original terms. Aegon does this by considering, among other things, the following qualitative and quantitative factors:
If the borrower is in financial difficulty, whether the modification merely reduces the contractual cash flows to amounts the\u00a0borrower is expected to be able to pay.
Whether any substantial new terms are introduced, such as a profit share/equity-based return that substantially affects the\u00a0risk profile of the loan or equity conversion option.
Significant extension of the loan term when the borrower is not in financial difficulty.
Significant change in the interest rate.
Change in the currency the loan is denominated in.
Insertion of collateral, other security or credit enhancements that significantly affect the credit risk associated with the loan.
Change in seniority or subordination.
Any change in SPPI assessment of the asset.
Significant change in the present value of the instrument.
If the terms are substantially different, Aegon derecognizes the original financial asset and recognizes a \"new\" asset at fair value and recalculates a new effective interest rate for the asset. The date of renegotiation is consequently considered to be the date of initial recognition for impairment calculation purposes, including for the purpose of determining whether a significant increase in credit risk has occurred. However, Aegon also assesses whether the new financial asset recognized is deemed to be credit-impaired at initial recognition, especially in circumstances where the renegotiation was driven by the debtor being unable to make the originally agreed payments. Differences in the carrying amount are also recognized in profit or loss as a gain or loss on derecognition (Results from financial transactions).
If the terms are not substantially different, the renegotiation or modification does not result in derecognition, and Aegon recalculates the gross carrying amount based on the revised cash flows of the financial asset and recognizes a modification gain or loss in profit or loss as result from financial transactions. The new gross carrying amount is recalculated by discounting the modified cash flows at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets).
The impact of modifications of financial assets on the expected credit loss calculation is discussed in note 4.2.6 Expected credit losses.
\nCash comprises cash at banks and in hand. Cash equivalents are short-term, highly liquid investments generally with original maturities of three months or less that are readily convertible to known cash amounts, are subject to insignificant risks of changes in value and are held for the purpose of meeting short-term cash requirements. Money market investments that are held for investment purposes (backing insurance liabilities, investment liabilities or equity based on asset liability management considerations) are not included in cash and cash equivalents but are presented as investments or investments on the account of policyholders.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f8040m3773p": { "value": "\nFinancial assets are recognized when Aegon becomes a party to the contractual provisions of the instrument.\u00a0Regular way purchase or sale of financial assets is recognized using trade date accounting.
Financial assets are classified for accounting purposes depending on the cash flow characteristics and the business model under which they were purchased.\u00a0
The Group determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective. The Group\u2019s business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios\u00a0and is based on observable factors, such as:\u00a0
How the performance of the business model and the financial assets held within that business model are evaluated and reported to the Group\u2019s 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\u2019s assessment.
In making the assessment of the contractual cash flows, Aegon considers whether they are consistent with a basic lending arrangement i.e. interest includes only consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is consistent with a basic lending arrangement. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.
Aegon presents its financial assets as Investments, Derivatives or Receivables and other assets in its Statement of Financial Position.
\nThe Group classifies debt instruments at fair value through profit and loss (FVPL) mandatorily if the business model is not to\u00a0hold the instrument to collect contractual cash flows (or hold to collect and sell the asset) or if the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, or contractual cash flows are\u00a0not solely payments of principal and interest (SPPI). Examples of assets that fail the SPPI test in Aegon\u2019s portfolio are investments in funds that are classified as debt and investments in tranches of contractually linked instruments where the\u00a0credit risk of the tranche is greater than the underlying portfolio\u2019s credit risk.
Within its European insurance entities Aegon holds investments in debt instruments which would not be mandatorily measured at FVPL, however they are designated at FVPL to minimize accounting mismatches with the insurance and investment contract liabilities.
Aegon has classified most of its loan portfolios, and all receivables as measured at amortized cost because they are held to collect contractual cash flows, which cash flows meet the SPPI criteria. Other debt instruments, held in a business model to collect contractual cash flows and to be sold when asset liability management strategy requires, and meet the SPPI criteria are classified as measured at fair value through other comprehensive income (FVOCI).
\nEquity instruments are classified as financial assets measured at\u00a0FVPL. Aegon opted to measure a small portion of its equity instruments at FVOCI.
\nAll derivatives are carried at FVPL as assets when fair value is positive and as liabilities when fair value is negative.
Aegon designates certain derivatives as hedging instruments in either:
Hedges of the fair value of recognized assets or liabilities or firm commitments (fair value hedges);
Hedges of highly probable future cash flows attributable to a recognized asset or liability or a highly probable forecast transaction (cash flow hedges); or
Hedges of a net investment in a foreign operation (net investment hedges).
Aegon documents, at the inception of the hedge, the relationship between hedged items and hedging instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Additional details on derivatives and hedge accounting is disclosed in note 20 Derivatives.
\nAt initial recognition, Aegon measures a financial asset at its fair value plus or minus, in the case of a financial asset not at FVPL, transaction costs that are incremental and directly attributable to the acquisition or issue of the financial asset or financial liability, such as fees and commissions. Immediately after initial recognition, an expected credit loss allowance (ECL) is recognized for financial assets measured at amortized cost and investments in debt instruments measured at FVOCI, as described in note 4.2.6 Expected credit losses, which results in an accounting loss being recognized in profit or loss when an asset is newly originated.
\nInterest revenue from financial assets measured at amortized cost or FVOCI is included in \"Interest revenue on financial instruments calculated using the effective interest rate method\".
Movements in the carrying amount of FVOCI debt instruments are taken through OCI, except for the recognition of impairment\u00a0gains or losses, interest revenue and foreign exchange gains and losses on the instrument\u2019s amortized cost that are recognized as profit or loss. When the debt instrument is derecognized, the cumulative gain or loss previously recognized in\u00a0OCI is reclassified from equity to profit or loss and recognized in \"Net Investment result.\" In the case of equity instruments measured at FVOCI the cumulative gain or loss would never be recycled in profit or loss.
When the debt instrument is derecognized, the cumulative gain or loss previously recognized in\u00a0OCI is reclassified from equity to profit or loss and recognized in \"Net Investment result\".
\nGains and losses on financial instruments at FVPL are included in the Results from financial transactions line in the\u00a0consolidated income statement, unless the financial instrument has been designated as a hedging instrument in a cash flow hedge or a hedge of a net investment in a foreign operation, when the effective portion of the fair value change is recognized in other comprehensive income. Fair value movements of fair value hedge instruments are offset by the fair value movements of the hedged item, and the resulting hedge ineffectiveness, if any, is included in result from financial transactions.
Interest revenue from debt securities at FVPL and derivatives is presented separately as \"Interest\u00a0revenue from financial instruments measured at FV.\"
\nIn the case of equity instruments measured at FVOCI the cumulative fair value gain or loss would never be recycled in\u00a0profit\u00a0or\u00a0loss.
\nWhen the contractual rights to the asset\u2019s cash flows expire, or an obligation arises to pass on all received cash flows without delay, or the asset is transferred with substantially all the risks and rewards of ownership or control over the asset is lost, Aegon derecognizes the financial asset.
When a novation takes place Aegon assesses whether the derecognition criteria are met. Aegon does not derecognize the\u00a0contract only if:
The old counterparty and new counterparty share the same parent company; and
Contract characteristics of the old contract and the new contract are the same; and
The risk profile of both contract parties is similar (either by both having a parental guarantee or both entities having an\u00a0investment grade rating)
On derecognition, the difference between the disposal proceeds and the carrying amount is recognized in the income statement within the results from financial transactions.
\nAegon sometimes renegotiates or otherwise modifies the contractual cash flows of financial assets. When this happens, Aegon assesses whether the new terms are substantially different to the original terms. Aegon does this by considering, among other things, the following qualitative and quantitative factors:
If the borrower is in financial difficulty, whether the modification merely reduces the contractual cash flows to amounts the\u00a0borrower is expected to be able to pay.
Whether any substantial new terms are introduced, such as a profit share/equity-based return that substantially affects the\u00a0risk profile of the loan or equity conversion option.
Significant extension of the loan term when the borrower is not in financial difficulty.
Significant change in the interest rate.
Change in the currency the loan is denominated in.
Insertion of collateral, other security or credit enhancements that significantly affect the credit risk associated with the loan.
Change in seniority or subordination.
Any change in SPPI assessment of the asset.
Significant change in the present value of the instrument.
If the terms are substantially different, Aegon derecognizes the original financial asset and recognizes a \"new\" asset at fair value and recalculates a new effective interest rate for the asset. The date of renegotiation is consequently considered to be the date of initial recognition for impairment calculation purposes, including for the purpose of determining whether a significant increase in credit risk has occurred. However, Aegon also assesses whether the new financial asset recognized is deemed to be credit-impaired at initial recognition, especially in circumstances where the renegotiation was driven by the debtor being unable to make the originally agreed payments. Differences in the carrying amount are also recognized in profit or loss as a gain or loss on derecognition (Results from financial transactions).
If the terms are not substantially different, the renegotiation or modification does not result in derecognition, and Aegon recalculates the gross carrying amount based on the revised cash flows of the financial asset and recognizes a modification gain or loss in profit or loss as result from financial transactions. The new gross carrying amount is recalculated by discounting the modified cash flows at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets).
The impact of modifications of financial assets on the expected credit loss calculation is discussed in note 4.2.6 Expected credit losses.
\nA financial instrument issued by the Group is classified as a liability if the contractual obligation must be settled in cash or another financial asset or through the exchange of financial assets and liabilities at potentially unfavorable conditions for\u00a0the\u00a0Group.
\nTrust pass-through securities and (subordinated) borrowings are initially recognized at their fair value including directly attributable transaction costs and are subsequently carried at amortized cost. Interest expense on trust pass-through securities and other borrowings carried at amortized cost is recognized in profit or loss as \"interest charges\" using the\u00a0effective interest method.
Subordinated borrowings include the liability component of non-cumulative subordinated notes. These notes are identified as\u00a0a compound instrument due to the nature of this financial instrument. Compound instruments are separated into equity components and liability components. The liability component for the non-cumulative subordinated notes is related to the\u00a0redemption amount.
\nInvestment contracts issued by Aegon in the Americas that are considered financial liabilities include fixed and variable annuities without significant life contingent guarantees, as well as separate accounts without significant life contingent guarantees, institutional products, and retirement savings plans. Aegon values all these products at amortized cost.
In the United Kingdom, financial liabilities where the policyholder bears the risk for investment performance comprise unit- linked investment contracts. These liabilities are designated FVPL due to being contractually linked to a pool of financial assets which are measured at fair value. The risks in respect of these liabilities are managed and evaluated on a fair value basis in accordance with a documented policy of asset and liability management.
As these contracts are not quoted in active markets, their value is determined by using valuation techniques, such as discounted cash flow methods and stochastic modeling. For investment contracts without discretionary participation features\u00a0that can be canceled by the policyholder, the fair value cannot be less than the surrender value.
\nLoan commitments provided by Aegon are measured as the amount of the loss allowance (calculated as described in note 4.2.6 Expected credit losses). Aegon has not provided any commitment to provide loans at a below-market interest rate, or that can be settled net in cash or by delivering or issuing another financial instrument.\u00a0
For loan commitments, the loss allowance is recognized as a provision. However, for contracts that include both a loan and an\u00a0undrawn commitment and Aegon cannot separately identify the expected credit losses on the undrawn commitment component from those on the loan component, the expected credit losses on the undrawn commitment are recognized together with the loss allowance for the loan. To the extent that the combined expected credit losses exceed the gross carrying amount of the loan, the expected credit losses are recognized as a provision.
\nCash comprises cash at banks and in hand. Cash equivalents are short-term, highly liquid investments generally with original maturities of three months or less that are readily convertible to known cash amounts, are subject to insignificant risks of changes in value and are held for the purpose of meeting short-term cash requirements. Money market investments that are held for investment purposes (backing insurance liabilities, investment liabilities or equity based on asset liability management considerations) are not included in cash and cash equivalents but are presented as investments or investments on the account of policyholders.
\nFinancial instruments that are issued by the Group are classified as equity if they represent a residual interest in the assets of\u00a0the Group after deducting all of its liabilities and the Group has an unconditional right to avoid delivering cash or another financial asset to settle its contractual obligation. In addition to common shares, the Group has issued perpetual securities. Perpetual securities have no final maturity date, repayment is at the discretion of Aegon. For junior perpetual capital securities, Aegon has the option to defer coupon payments at its discretion. The perpetual capital securities are classified as\u00a0equity rather than debt, are measured at par and those that are denominated in US dollars are translated into euro using historical exchange rates. Treasury shares are deducted from Group equity.
Non-cumulative subordinated notes were identified as a compound instrument due to the nature of this financial instrument. For these non-cumulative subordinated notes, Aegon had an unconditional right to avoid delivering cash or another financial asset to settle the coupon payments. The redemption of the principal was however not at the discretion of Aegon and therefore Aegon had a\u00a0contractual obligation to settle the redemption in cash or another financial asset or through the exchange of financial assets and liabilities at potentially unfavorable conditions for Aegon. Compound instruments were separated into liability components and equity components. The liability component for the non-cumulative subordinated notes was equal to the present value of the redemption amount and carried at amortized cost using the effective interest rate method. The unwinding of the discount of this component was recognized in the income statement. At initial recognition the\u00a0equity component was assigned the residual amount after deducting the liability component from the fair value of the\u00a0instrument as a whole. The equity component in US dollars was translated into euro using historical exchange rates. Incremental external costs that are directly attributable to the issuing or buying back of own equity instruments are recognized in equity, net of tax. For compound instruments incremental external costs that were directly attributable to the\u00a0issuing or buying back of the compound instruments were recognized proportionate to the equity component and liability component, net of tax. The Group recognizes the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where it originally recognized the past transactions or events that generated the distributable profits. A liability for non-cumulative dividends payable is not recognized until the dividends have been declared and approved.
When the Group reacquires its own equity instrument and includes the share as an underlying item of direct participating contracts, the Group may elect not to deduct the reacquired instrument from equity and instead account for the reacquired instrument as if it were a financial asset and measure it at FVPL. This election is irrevocable and is made on an instrument-by-instrument basis.\u00a0
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5672m3772p": { "value": "\nWhen the contractual rights to the asset\u2019s cash flows expire, or an obligation arises to pass on all received cash flows without delay, or the asset is transferred with substantially all the risks and rewards of ownership or control over the asset is lost, Aegon derecognizes the financial asset.
When a novation takes place Aegon assesses whether the derecognition criteria are met. Aegon does not derecognize the\u00a0contract only if:
The old counterparty and new counterparty share the same parent company; and
Contract characteristics of the old contract and the new contract are the same; and
The risk profile of both contract parties is similar (either by both having a parental guarantee or both entities having an\u00a0investment grade rating)
On derecognition, the difference between the disposal proceeds and the carrying amount is recognized in the income statement within the results from financial transactions.
\nAegon sometimes renegotiates or otherwise modifies the contractual cash flows of financial assets. When this happens, Aegon assesses whether the new terms are substantially different to the original terms. Aegon does this by considering, among other things, the following qualitative and quantitative factors:
If the borrower is in financial difficulty, whether the modification merely reduces the contractual cash flows to amounts the\u00a0borrower is expected to be able to pay.
Whether any substantial new terms are introduced, such as a profit share/equity-based return that substantially affects the\u00a0risk profile of the loan or equity conversion option.
Significant extension of the loan term when the borrower is not in financial difficulty.
Significant change in the interest rate.
Change in the currency the loan is denominated in.
Insertion of collateral, other security or credit enhancements that significantly affect the credit risk associated with the loan.
Change in seniority or subordination.
Any change in SPPI assessment of the asset.
Significant change in the present value of the instrument.
If the terms are substantially different, Aegon derecognizes the original financial asset and recognizes a \"new\" asset at fair value and recalculates a new effective interest rate for the asset. The date of renegotiation is consequently considered to be the date of initial recognition for impairment calculation purposes, including for the purpose of determining whether a significant increase in credit risk has occurred. However, Aegon also assesses whether the new financial asset recognized is deemed to be credit-impaired at initial recognition, especially in circumstances where the renegotiation was driven by the debtor being unable to make the originally agreed payments. Differences in the carrying amount are also recognized in profit or loss as a gain or loss on derecognition (Results from financial transactions).
If the terms are not substantially different, the renegotiation or modification does not result in derecognition, and Aegon recalculates the gross carrying amount based on the revised cash flows of the financial asset and recognizes a modification gain or loss in profit or loss as result from financial transactions. The new gross carrying amount is recalculated by discounting the modified cash flows at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets).
The impact of modifications of financial assets on the expected credit loss calculation is discussed in note 4.2.6 Expected credit losses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f12537m5692p": { "value": "\nThe Group classifies debt instruments at fair value through profit and loss (FVPL) mandatorily if the business model is not to\u00a0hold the instrument to collect contractual cash flows (or hold to collect and sell the asset) or if the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, or contractual cash flows are\u00a0not solely payments of principal and interest (SPPI). Examples of assets that fail the SPPI test in Aegon\u2019s portfolio are investments in funds that are classified as debt and investments in tranches of contractually linked instruments where the\u00a0credit risk of the tranche is greater than the underlying portfolio\u2019s credit risk.
Within its European insurance entities Aegon holds investments in debt instruments which would not be mandatorily measured at FVPL, however they are designated at FVPL to minimize accounting mismatches with the insurance and investment contract liabilities.
\nEquity instruments are classified as financial assets measured at\u00a0FVPL. Aegon opted to measure a small portion of its equity instruments at FVOCI.
\nAll derivatives are carried at FVPL as assets when fair value is positive and as liabilities when fair value is negative.
Aegon designates certain derivatives as hedging instruments in either:
Hedges of the fair value of recognized assets or liabilities or firm commitments (fair value hedges);
Hedges of highly probable future cash flows attributable to a recognized asset or liability or a highly probable forecast transaction (cash flow hedges); or
Hedges of a net investment in a foreign operation (net investment hedges).
Aegon documents, at the inception of the hedge, the relationship between hedged items and hedging instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Additional details on derivatives and hedge accounting is disclosed in note 20 Derivatives.
\nGains and losses on financial instruments at FVPL are included in the Results from financial transactions line in the\u00a0consolidated income statement, unless the financial instrument has been designated as a hedging instrument in a cash flow hedge or a hedge of a net investment in a foreign operation, when the effective portion of the fair value change is recognized in other comprehensive income. Fair value movements of fair value hedge instruments are offset by the fair value movements of the hedged item, and the resulting hedge ineffectiveness, if any, is included in result from financial transactions.
Interest revenue from debt securities at FVPL and derivatives is presented separately as \"Interest\u00a0revenue from financial instruments measured at FV.\"
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f9680m5180p": { "value": "\nAll derivatives are carried at FVPL as assets when fair value is positive and as liabilities when fair value is negative.
Aegon designates certain derivatives as hedging instruments in either:
Hedges of the fair value of recognized assets or liabilities or firm commitments (fair value hedges);
Hedges of highly probable future cash flows attributable to a recognized asset or liability or a highly probable forecast transaction (cash flow hedges); or
Hedges of a net investment in a foreign operation (net investment hedges).
Aegon documents, at the inception of the hedge, the relationship between hedged items and hedging instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Additional details on derivatives and hedge accounting is disclosed in note 20 Derivatives.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f11450m5693p": { "value": "\nAll derivatives are carried at FVPL as assets when fair value is positive and as liabilities when fair value is negative.
Aegon designates certain derivatives as hedging instruments in either:
Hedges of the fair value of recognized assets or liabilities or firm commitments (fair value hedges);
Hedges of highly probable future cash flows attributable to a recognized asset or liability or a highly probable forecast transaction (cash flow hedges); or
Hedges of a net investment in a foreign operation (net investment hedges).
Aegon documents, at the inception of the hedge, the relationship between hedged items and hedging instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Additional details on derivatives and hedge accounting is disclosed in note 20 Derivatives.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f11451m5694p": { "value": "\nAll derivatives are carried at FVPL as assets when fair value is positive and as liabilities when fair value is negative.
Aegon designates certain derivatives as hedging instruments in either:
Hedges of the fair value of recognized assets or liabilities or firm commitments (fair value hedges);
Hedges of highly probable future cash flows attributable to a recognized asset or liability or a highly probable forecast transaction (cash flow hedges); or
Hedges of a net investment in a foreign operation (net investment hedges).
Aegon documents, at the inception of the hedge, the relationship between hedged items and hedging instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Additional details on derivatives and hedge accounting is disclosed in note 20 Derivatives.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3481m2926p": { "value": "\nA financial instrument issued by the Group is classified as a liability if the contractual obligation must be settled in cash or another financial asset or through the exchange of financial assets and liabilities at potentially unfavorable conditions for\u00a0the\u00a0Group.
\nTrust pass-through securities and (subordinated) borrowings are initially recognized at their fair value including directly attributable transaction costs and are subsequently carried at amortized cost. Interest expense on trust pass-through securities and other borrowings carried at amortized cost is recognized in profit or loss as \"interest charges\" using the\u00a0effective interest method.
Subordinated borrowings include the liability component of non-cumulative subordinated notes. These notes are identified as\u00a0a compound instrument due to the nature of this financial instrument. Compound instruments are separated into equity components and liability components. The liability component for the non-cumulative subordinated notes is related to the\u00a0redemption amount.
\nInvestment contracts issued by Aegon in the Americas that are considered financial liabilities include fixed and variable annuities without significant life contingent guarantees, as well as separate accounts without significant life contingent guarantees, institutional products, and retirement savings plans. Aegon values all these products at amortized cost.
In the United Kingdom, financial liabilities where the policyholder bears the risk for investment performance comprise unit- linked investment contracts. These liabilities are designated FVPL due to being contractually linked to a pool of financial assets which are measured at fair value. The risks in respect of these liabilities are managed and evaluated on a fair value basis in accordance with a documented policy of asset and liability management.
As these contracts are not quoted in active markets, their value is determined by using valuation techniques, such as discounted cash flow methods and stochastic modeling. For investment contracts without discretionary participation features\u00a0that can be canceled by the policyholder, the fair value cannot be less than the surrender value.
\nLoan commitments provided by Aegon are measured as the amount of the loss allowance (calculated as described in note 4.2.6 Expected credit losses). Aegon has not provided any commitment to provide loans at a below-market interest rate, or that can be settled net in cash or by delivering or issuing another financial instrument.\u00a0
For loan commitments, the loss allowance is recognized as a provision. However, for contracts that include both a loan and an\u00a0undrawn commitment and Aegon cannot separately identify the expected credit losses on the undrawn commitment component from those on the loan component, the expected credit losses on the undrawn commitment are recognized together with the loss allowance for the loan. To the extent that the combined expected credit losses exceed the gross carrying amount of the loan, the expected credit losses are recognized as a provision.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5671m3771p": { "value": "\nTrust pass-through securities and (subordinated) borrowings are initially recognized at their fair value including directly attributable transaction costs and are subsequently carried at amortized cost. Interest expense on trust pass-through securities and other borrowings carried at amortized cost is recognized in profit or loss as \"interest charges\" using the\u00a0effective interest method.
Subordinated borrowings include the liability component of non-cumulative subordinated notes. These notes are identified as\u00a0a compound instrument due to the nature of this financial instrument. Compound instruments are separated into equity components and liability components. The liability component for the non-cumulative subordinated notes is related to the\u00a0redemption amount.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3482m2927p": { "value": "\nFees and commissions from investment management services and mutual funds are performed on an ongoing basis evenly throughout the year and are accounted for monthly (1/12 of the contractual agreement). Performance fees may be charged to\u00a0policyholders in the event of outperformance in the investments compared to predefined benchmark levels. They are accounted for only when specified hurdles for generating performance fees are achieved i.e. when the full performance obligation is met.
Aegon acts also as an insurance broker selling insurance contracts of other insurance companies to policyholders and receiving direct sales commission as well as commissions over time when the same policyholders renew their contracts. These commissions are recognized only when received as policyholders\u2019 renewals are not certain enough to be recorded upfront.
Initial fees and front-end loadings paid by policyholders and other clients for future investment management services related to investment contracts without discretionary participation features are deferred and recognized as revenue when the related services are rendered.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFeeAndCommissionIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3483m2928p": { "value": "\nThe Group does not recognize as intangible assets those costs that are directly incurred in fulfilling the insurance contracts and they comprise both direct costs and an allocation of fixed and variable overheads.
\nOn the acquisition of a portfolio of investment contracts without discretionary participation features under which Aegon will render investment management services, the present value of future servicing rights is recognized as an intangible asset. Future servicing rights can also be recognized on the sale of a loan portfolio or the acquisition of insurance agency activities.
The present value of the future servicing rights is amortized over the servicing period and is subject to impairment testing. It\u00a0is\u00a0derecognized when the related contracts are settled or disposed of.
Where applicable, Aegon recognizes other intangibles on the acquisition of a business combination such as those related to customer relationships.\u00a0This can include customer contracts, distribution agreements and client portfolios. For these intangibles the present value of future cash flows is recognized and amortized in the period when future economic benefits arise from these intangibles. These intangible assets are also presented under future servicing rights.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f8037m4657p": { "value": "\nThe Group does not recognize as intangible assets those costs that are directly incurred in fulfilling the insurance contracts and they comprise both direct costs and an allocation of fixed and variable overheads.
\nOn the acquisition of a portfolio of investment contracts without discretionary participation features under which Aegon will render investment management services, the present value of future servicing rights is recognized as an intangible asset. Future servicing rights can also be recognized on the sale of a loan portfolio or the acquisition of insurance agency activities.
The present value of the future servicing rights is amortized over the servicing period and is subject to impairment testing. It\u00a0is\u00a0derecognized when the related contracts are settled or disposed of.
Where applicable, Aegon recognizes other intangibles on the acquisition of a business combination such as those related to customer relationships.\u00a0This can include customer contracts, distribution agreements and client portfolios. For these intangibles the present value of future cash flows is recognized and amortized in the period when future economic benefits arise from these intangibles. These intangible assets are also presented under future servicing rights.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3484m2929p": { "value": "\nInvestments in real estate include property held to earn rentals or for capital appreciation, or both. Investments in real estate\u00a0are presented as \"Investments\". Property that is occupied by the Group and that is not intended to be sold in\u00a0the\u00a0near\u00a0future\u00a0is classified as real estate held for own use and is presented in Other assets and receivables.
All property is initially recognized at cost. Such cost includes the cost of replacing part of the real estate and borrowing cost\u00a0for long-term construction projects if recognition criteria are met. Subsequently, investments in real estate are measured\u00a0at fair value with the changes in fair value recognized in the income statement. Real estate held for own use is carried at its revalued amount, which is the fair value at the date of revaluation less subsequent accumulated depreciation and impairment\u00a0losses. Depreciation is calculated on a straight-line basis over the useful life of a building. Land is not depreciated. Revaluation\u00a0of real estate for own use is recognized in other comprehensive income and accumulated in revaluation reserve in equity.\u00a0On revaluation the accumulated depreciation is eliminated against the gross carrying amount of\u00a0the asset and the net amount\u00a0is restated to the revalued amount.
On disposal of an asset, the difference between the net proceeds received and the carrying amount is recognized in\u00a0the\u00a0income statement. Any remaining surplus attributable to real estate in own use in the revaluation reserve is\u00a0transferred\u00a0to\u00a0retained earnings.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3485m2930p": { "value": "\nInvestments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement.\u00a0Aegon has assessed the\u00a0nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the\u00a0equity\u00a0method.
If joint ventures are obtained in successive share purchases, each significant transaction is accounted for separately.
Aegon applies a fair value approach for accounting of a step acquisition of a joint venture or an associate, which means that the fair value of a previously held interest at the date that joint control or significant influence is obtained is deemed to be the\u00a0cost for the initial application of equity accounting.
The acquisition of preferred shares of equity accounted investees increases the carrying amount of the asset as, though they\u00a0are non-voting, the investees give access to the returns associated with an ownership interest in the joint venture.
Gains and losses on transactions between the Group and the joint ventures are eliminated to the extent of the Group\u2019s interest in the entity, with the exception of losses that are evidence of impairment which are recognized immediately. Own\u00a0equity instruments of Aegon Ltd. that are held by the joint venture are not eliminated.
The Group\u2019s interests in some joint arrangements are underlying items of participating contracts. The Group has elected to\u00a0measure these investments at FVPL because it manages them on a fair value basis.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f6084m3890p": { "value": "\nInvestments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement.\u00a0Aegon has assessed the\u00a0nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the\u00a0equity\u00a0method.
If joint ventures are obtained in successive share purchases, each significant transaction is accounted for separately.
Aegon applies a fair value approach for accounting of a step acquisition of a joint venture or an associate, which means that the fair value of a previously held interest at the date that joint control or significant influence is obtained is deemed to be the\u00a0cost for the initial application of equity accounting.
The acquisition of preferred shares of equity accounted investees increases the carrying amount of the asset as, though they\u00a0are non-voting, the investees give access to the returns associated with an ownership interest in the joint venture.
Gains and losses on transactions between the Group and the joint ventures are eliminated to the extent of the Group\u2019s interest in the entity, with the exception of losses that are evidence of impairment which are recognized immediately. Own\u00a0equity instruments of Aegon Ltd. that are held by the joint venture are not eliminated.
The Group\u2019s interests in some joint arrangements are underlying items of participating contracts. The Group has elected to\u00a0measure these investments at FVPL because it manages them on a fair value basis.
\nEntities over which the Group has significant influence through power to participate in financial and operating policy decisions, but which do not meet the definition of a subsidiary, are accounted for using the equity method.
In assessing the extent to which Aegon can influence an entity, the same considerations apply as in analyzing the extent to which Aegon has control over a potential subsidiary. A voting power of less than 20% allows the presumption that significant influence does not exist (unless such influence can be clearly demonstrated), and likewise a voting power of at least 20% allows the presumption that the investor has significant influence over the investee.
Aegon recognizes impairment of associates accounted for using the equity method when there is objective evidence that the\u00a0recoverability of the carrying amount decreased. Among the events which are considered such objective evidence a\u00a0significant or prolonged decline in fair value can be considered as an impairment trigger. Aegon defined a decline to be significant using a threshold of fair value being a minimum of 20% lower than the carrying amount, and the term prolonged is\u00a0achieved at a fair value being continuously below the carrying amount for a period of six months.
Interests held by venture capital entities, mutual funds and investment funds that qualify as an associate are accounted for as an investment held at fair value through profit or loss. Interests held by the Group in venture capital entities, mutual funds and investment funds that are managed on a fair value basis, are also accounted for as investments held at fair value through profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3486m2931p": { "value": "\nEntities over which the Group has significant influence through power to participate in financial and operating policy decisions, but which do not meet the definition of a subsidiary, are accounted for using the equity method.
In assessing the extent to which Aegon can influence an entity, the same considerations apply as in analyzing the extent to which Aegon has control over a potential subsidiary. A voting power of less than 20% allows the presumption that significant influence does not exist (unless such influence can be clearly demonstrated), and likewise a voting power of at least 20% allows the presumption that the investor has significant influence over the investee.
Aegon recognizes impairment of associates accounted for using the equity method when there is objective evidence that the\u00a0recoverability of the carrying amount decreased. Among the events which are considered such objective evidence a\u00a0significant or prolonged decline in fair value can be considered as an impairment trigger. Aegon defined a decline to be significant using a threshold of fair value being a minimum of 20% lower than the carrying amount, and the term prolonged is\u00a0achieved at a fair value being continuously below the carrying amount for a period of six months.
Interests held by venture capital entities, mutual funds and investment funds that qualify as an associate are accounted for as an investment held at fair value through profit or loss. Interests held by the Group in venture capital entities, mutual funds and investment funds that are managed on a fair value basis, are also accounted for as investments held at fair value through profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3488m2933p": { "value": "\nCash comprises cash at banks and in hand. Cash equivalents are short-term, highly liquid investments generally with original maturities of three months or less that are readily convertible to known cash amounts, are subject to insignificant risks of changes in value and are held for the purpose of meeting short-term cash requirements. Money market investments that are held for investment purposes (backing insurance liabilities, investment liabilities or equity based on asset liability management considerations) are not included in cash and cash equivalents but are presented as investments or investments on the account of policyholders.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3489m2934p": { "value": "\nAssets are tested individually for impairment when there are indications that the asset may be impaired. For goodwill and intangible assets with an undefined life, an impairment test is performed at least once a year or more frequently as a result of\u00a0an event or change in circumstances that would indicate an impairment charge may be necessary. The impairment loss is\u00a0calculated as the difference between the carrying and the recoverable amount of the asset, which is the higher of an asset\u2019s value in use and its fair value less the cost of disposal. The value in use represents the discounted future net cash flows from the continuing use and ultimate disposal of the asset and reflects its known inherent risks and uncertainties. The valuation utilizes the best available information, including assumptions and projections considered reasonable and supportable by management. The assumptions used in the valuation involve significant judgments and estimates. See note 24 Intangible assets for more details.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5759m3798p": { "value": "\nAssets are tested individually for impairment when there are indications that the asset may be impaired. For goodwill and intangible assets with an undefined life, an impairment test is performed at least once a year or more frequently as a result of\u00a0an event or change in circumstances that would indicate an impairment charge may be necessary. The impairment loss is\u00a0calculated as the difference between the carrying and the recoverable amount of the asset, which is the higher of an asset\u2019s value in use and its fair value less the cost of disposal. The value in use represents the discounted future net cash flows from the continuing use and ultimate disposal of the asset and reflects its known inherent risks and uncertainties. The valuation utilizes the best available information, including assumptions and projections considered reasonable and supportable by management. The assumptions used in the valuation involve significant judgments and estimates. See note 24 Intangible assets for more details.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5694m3738p": { "value": "\nFinancial instruments that are issued by the Group are classified as equity if they represent a residual interest in the assets of\u00a0the Group after deducting all of its liabilities and the Group has an unconditional right to avoid delivering cash or another financial asset to settle its contractual obligation. In addition to common shares, the Group has issued perpetual securities. Perpetual securities have no final maturity date, repayment is at the discretion of Aegon. For junior perpetual capital securities, Aegon has the option to defer coupon payments at its discretion. The perpetual capital securities are classified as\u00a0equity rather than debt, are measured at par and those that are denominated in US dollars are translated into euro using historical exchange rates. Treasury shares are deducted from Group equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f11463m5701p": { "value": "\nWhen the Group reacquires its own equity instrument and includes the share as an underlying item of direct participating contracts, the Group may elect not to deduct the reacquired instrument from equity and instead account for the reacquired instrument as if it were a financial asset and measure it at FVPL. This election is irrevocable and is made on an instrument-by-instrument basis.\u00a0
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f12495m5907p": { "value": "\nA liability is recognized for the undiscounted amount of short-term employee benefits expected to be settled within one year after the end of the period in which the service was rendered. Accumulating short-term absences are recognized over the period in which the service is provided. Benefits that are not service-related are recognized when the event that results in obligation occurs.
\nThe Group has issued defined contribution plans and defined benefit plans. A plan is classified as a defined contribution plan when the Group has no further obligation than the payment of a fixed contribution. All other plans are classified as defined benefit plans.
\nThe contribution payable to a defined contribution plan for services provided is recognized as an expense in the income statement. An asset is recognized to the extent that the contribution paid exceeds the amount due for services provided.
\nThe defined benefit obligation is based on the terms and conditions of the plan applicable on the reporting date. In measuring the defined benefit obligation the Group uses the projected unit credit method and actuarial assumptions that represent the management's best estimates. The benefits are discounted using an interest rate based on the market yield for high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity that approximate the terms of the related pension liability. Actuarial assumptions used in the measurement of the liability include the discount rate, estimated future salary increases, mortality rates and price inflation. To the extent that actual experience deviates from these assumptions, the valuation of defined benefit plans and the level of pension expenses recognized in the\u00a0future may be affected. Plan improvements (either vested or unvested) are recognized in the income statement at the date when the plan improvement occurs.
Plan assets are qualifying insurance policies and assets held by long-term employee benefit funds that can only be used to\u00a0pay the employee benefits under the plan and are not available to the Group\u2019s creditors. They are measured at fair value and are deducted from the defined benefit obligation in determining the amount recognized on the statement of financial position. For reimbursements by associated third parties of some or all of the expenditure required to settle a defined benefit obligation, a reimbursement asset is recognized on the basis of the present value of the related obligation, subject to any reduction required if the reimbursement is not recoverable in full.
\nThe cost of the defined benefit plans is determined at the beginning of the year and comprise the following components:
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.
Remeasurements of the net defined benefit liability (asset) which is recognized in other comprehensive income are revisited quarterly and are not allowed to be reclassified to profit or loss in a subsequent period.
Deducted from current year service cost are discretionary employee contributions and employee contributions that are linked to service (those which are independent of the number of years of service).\u00a0Net interest on the net defined benefit liability (asset) is determined by multiplying the net defined benefit liability (asset) by the applicable discount rate. Net interest on the\u00a0net defined benefit liability (asset) comprises interest income on plan assets and interest cost on the defined benefit obligation. Whereby interest income on plan assets is a component of the return on plan assets and is determined by multiplying the fair value of the plan assets by the applicable discount rate. The difference between the interest income on\u00a0plan assets and the actual return on plan assets is included in the remeasurement of the net defined benefit liability (asset).\u00a0Any movements during the period related to reimbursement assets, will be partly recognized in the income statement (interest cost on the reimbursement right) and partly through other comprehensive income for the difference between the\u00a0actual return and the interest cost.
\nThe Group has issued share-based plans that entitle selected employees to receive Aegon Ltd. common shares, subject to\u00a0pre-defined conditions such as the grant price of the shares and (business and personal) performance criteria. The number of shares that will vest may partly depend on Aegon\u2019s relative total shareholder return in comparison with a peer group\u00a0or return on regulatory capital.
The expenses recognized for these plans are based on the fair value on the grant date of the shares. The fair value is measured at the market price of Aegon Ltd. common shares, adjusted to take into account the non-vesting and market conditions upon which the shares were granted. For example, where the employee is not entitled to receive dividends during the vesting period, this factor is taken into account when estimating the fair value of the shares granted. For the determination of factors such as expected dividends, market observable data has been considered. In addition, where the relative total shareholder return is included in the performance criteria, this factor represents a market condition and hence is taken into account when estimating the fair value of the shares granted.\u00a0Subsequent changes in such market variables would not impact recognition of expenses during the service period. Some plans also include non-market vesting conditions like return on regulatory capital. These conditions are not considered in the estimation of grant date fair value, however subsequent changes in the expected outcome of such variables result in the update in the number of instruments expected to vest, therefore a remeasurement of cumulative expenses.
The cost for long-term incentive plans is recognized in the income statement, together with a corresponding increase in\u00a0shareholders\u2019 equity, as the services are rendered. During this period the cumulative expense recognized at the reporting date reflects management\u2019s best estimate of the number of shares expected to vest ultimately.\u00a0
The withholding of shares to fund the payment to the tax authorities in respect of the employee\u2019s withholding tax obligation associated with the share-based payment is accounted for as a deduction from equity for the shares withheld, except to the\u00a0extent that the payment exceeds the fair value at the net settlement date of the equity instruments withheld.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5670m3770p": { "value": "\nThe contribution payable to a defined contribution plan for services provided is recognized as an expense in the income statement. An asset is recognized to the extent that the contribution paid exceeds the amount due for services provided.
\nThe defined benefit obligation is based on the terms and conditions of the plan applicable on the reporting date. In measuring the defined benefit obligation the Group uses the projected unit credit method and actuarial assumptions that represent the management's best estimates. The benefits are discounted using an interest rate based on the market yield for high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity that approximate the terms of the related pension liability. Actuarial assumptions used in the measurement of the liability include the discount rate, estimated future salary increases, mortality rates and price inflation. To the extent that actual experience deviates from these assumptions, the valuation of defined benefit plans and the level of pension expenses recognized in the\u00a0future may be affected. Plan improvements (either vested or unvested) are recognized in the income statement at the date when the plan improvement occurs.
Plan assets are qualifying insurance policies and assets held by long-term employee benefit funds that can only be used to\u00a0pay the employee benefits under the plan and are not available to the Group\u2019s creditors. They are measured at fair value and are deducted from the defined benefit obligation in determining the amount recognized on the statement of financial position. For reimbursements by associated third parties of some or all of the expenditure required to settle a defined benefit obligation, a reimbursement asset is recognized on the basis of the present value of the related obligation, subject to any reduction required if the reimbursement is not recoverable in full.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5669m3769p": { "value": "\nThe Group has issued share-based plans that entitle selected employees to receive Aegon Ltd. common shares, subject to\u00a0pre-defined conditions such as the grant price of the shares and (business and personal) performance criteria. The number of shares that will vest may partly depend on Aegon\u2019s relative total shareholder return in comparison with a peer group\u00a0or return on regulatory capital.
The expenses recognized for these plans are based on the fair value on the grant date of the shares. The fair value is measured at the market price of Aegon Ltd. common shares, adjusted to take into account the non-vesting and market conditions upon which the shares were granted. For example, where the employee is not entitled to receive dividends during the vesting period, this factor is taken into account when estimating the fair value of the shares granted. For the determination of factors such as expected dividends, market observable data has been considered. In addition, where the relative total shareholder return is included in the performance criteria, this factor represents a market condition and hence is taken into account when estimating the fair value of the shares granted.\u00a0Subsequent changes in such market variables would not impact recognition of expenses during the service period. Some plans also include non-market vesting conditions like return on regulatory capital. These conditions are not considered in the estimation of grant date fair value, however subsequent changes in the expected outcome of such variables result in the update in the number of instruments expected to vest, therefore a remeasurement of cumulative expenses.
The cost for long-term incentive plans is recognized in the income statement, together with a corresponding increase in\u00a0shareholders\u2019 equity, as the services are rendered. During this period the cumulative expense recognized at the reporting date reflects management\u2019s best estimate of the number of shares expected to vest ultimately.\u00a0
The withholding of shares to fund the payment to the tax authorities in respect of the employee\u2019s withholding tax obligation associated with the share-based payment is accounted for as a deduction from equity for the shares withheld, except to the\u00a0extent that the payment exceeds the fair value at the net settlement date of the equity instruments withheld.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3491m2936p": { "value": "\nAegon has determined that the global minimum top-up tax \u2013 which it is required to pay under Pillar Two legislation, if applicable \u2013 is an income tax in the scope of IAS 12. Aegon has applied a temporary relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.
The income tax charge on the result for the year comprises current and deferred tax. Current tax is calculated taking into\u00a0account items that are non-taxable or disallowed, using rates that have been enacted or substantively enacted by the\u00a0reporting date and any adjustments to tax payable relating to previous years.\u00a0
Current tax receivables and payables for current and prior periods reflect the best estimate of the tax amount expected to\u00a0be\u00a0paid or received and include provisions for uncertain income tax positions, if any.\u00a0
Deferred tax assets and liabilities are recognized, using the liability method, for temporary differences arising between the\u00a0carrying value and tax value of an item on the balance sheet and for unused tax losses and credits carried forward. Deferred\u00a0tax assets and liabilities are measured using tax rates applicable that have been enacted or substantively
enacted\u00a0at\u00a0the balance sheet date and are expected to apply when the deferred tax asset is realized, or the deferred tax liability is settled.
Deferred tax assets are recognized for deductible temporary differences and unused tax losses and credits carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. The recognition of the deferred tax assets is based on Aegon\u2019s mid-term projections, including sensitivities and tax planning, and is reassessed periodically. Deferred tax liabilities relating to investments in subsidiaries, associates and joint ventures are not recognized if\u00a0the Group is able to control the timing of the reversal of the temporary difference and it is probable that the difference will not\u00a0be reversed in the foreseeable future.\u00a0
Tax assets and liabilities are presented separately in the consolidated balance sheet except where there is a legally enforceable right to offset the tax assets against tax liabilities within the same tax jurisdiction and the intention to settle such\u00a0balances on a net basis.
Tax assets and liabilities are recognized in relation to the underlying transaction either in profit and loss, other comprehensive income or directly in equity.\u00a0
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5697m2932p": { "value": "\nDeferred tax assets and liabilities are recognized, using the liability method, for temporary differences arising between the\u00a0carrying value and tax value of an item on the balance sheet and for unused tax losses and credits carried forward. Deferred\u00a0tax assets and liabilities are measured using tax rates applicable that have been enacted or substantively
enacted\u00a0at\u00a0the balance sheet date and are expected to apply when the deferred tax asset is realized, or the deferred tax liability is settled.
Deferred tax assets are recognized for deductible temporary differences and unused tax losses and credits carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. The recognition of the deferred tax assets is based on Aegon\u2019s mid-term projections, including sensitivities and tax planning, and is reassessed periodically. Deferred tax liabilities relating to investments in subsidiaries, associates and joint ventures are not recognized if\u00a0the Group is able to control the timing of the reversal of the temporary difference and it is probable that the difference will not\u00a0be reversed in the foreseeable future.\u00a0
Tax assets and liabilities are presented separately in the consolidated balance sheet except where there is a legally enforceable right to offset the tax assets against tax liabilities within the same tax jurisdiction and the intention to settle such\u00a0balances on a net basis.
Tax assets and liabilities are recognized in relation to the underlying transaction either in profit and loss, other comprehensive income or directly in equity.\u00a0
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3492m2937p": { "value": "\nThe Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or\u00a0before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the\u00a0underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The\u00a0right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of real estate and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses (using the same rate to measure the lease liability), if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or if that rate cannot be readily determined, the Group\u2019s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The lease liability is\u00a0measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group\u2019s estimate of the amount expected to\u00a0be\u00a0payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. The Group presents right-of-use assets that do not meet the definition of investment property in Other assets and receivables and lease liabilities in Other liabilities in the statement of financial position.
Short-term leases and leases of low-value assets The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets, including small office equipment. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
\nWhere the Group is the lessor under an operating lease, the assets subject to the operating lease arrangement are presented in the statement of financial position according to the nature of the asset. Income from these leases is recognized in the income statement on a straight-line basis over the lease term, unless another systematic basis is more representative of the\u00a0time pattern in which the use benefit derived from the leased asset is diminished.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3493m2938p": { "value": "\nWith the exception of expenses made to acquire insurance contracts and investment contracts with discretionary participating features, all expenses are incurred as the related activities are performed.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f8098m4660p": { "value": "\n 3 Critical accounting estimates and judgment in applying accounting policies\n\n\nIn preparing these consolidated financial statements, Aegon has made judgments, estimates and assumptions that affect the\u00a0application of the Group\u2019s accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual\u00a0results may differ from these estimates.Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are the fair value of certain invested assets and derivatives (please\u00a0see\u00a0note 38 Fair value), the measurement of (re)insurance contracts and investment contracts with discretionary participating features (please see note 29 Insurance contracts), and the measurement of the expected credit loss allowance (please see note 4 Financial risks).\u00a0Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.\n Macro-economic context\n\n\nWhen making judgments, estimates, and assumptions, Aegon has taken into consideration the current macro-economic context, like the conflicts between Ukraine and Russia and between Israel and Hamas, which continued in 2024. In addition to causing a humanitarian crisis, these events impacted global financial markets and caused significant economic turbulence. Aegon closely monitors financial and wider economic developments to understand our exposure to potential shocks in the markets where we invest, and Aegon works proactively to mitigate related risks.\n Management's assessment of going concern\n\n\nThe consolidated financial statements of Aegon have been prepared assuming a going concern basis of accounting based on the reasonable assumption that the Company is, and will be, able to continue its normal course of business in the foreseeable future. Relevant facts and circumstances relating to the consolidated financial position on December 31, 2024, were assessed in order to reach the going concern assumption. The main areas assessed are financial performance, capital adequacy, financial position and flexibility, liquidity, ability to access capital markets, leverage ratios and the level of Cash Capital at Holding. For further details, see note 37 Capital management and solvency. Considering all these areas management concluded that the going concern assumption for Aegon is appropriate in preparing the consolidated financial statements and there is no significant doubt about going concern.\n Actuarial and economic assumptions\n\n\nInformation about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to\u00a0the carrying amount of insurance related assets and liabilities within the year ending December 31, 2024, is included in note\u00a029 Insurance contracts, reinsurance contracts held and investment contracts with discretionary participation features.\n Measurement of the expected credit loss allowance\n\n\nThe measurement of the expected credit loss (ECL) allowance for financial assets measured at amortized cost and FVOCI is\u00a0an\u00a0area that requires the use of complex models and significant assumptions about future economic conditions and credit behavior (e.g. the likelihood of customers defaulting and the resulting losses). Explanation of the inputs, assumptions, and estimation techniques used in measuring ECL is further detailed in note 4.2 Credit risk, which also sets out key sensitivities of\u00a0the ECL to changes in these elements.\u00a0Detailed information about the judgments and estimates made by the Group and information incorporating the forward-looking information into the measurement of the ECL is set out in note 4.2 Credit risk.\n Classification of financial assets\n\n\nThe classification of financial assets is based on Aegon\u2019s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. Aegon determines within which classification the financial assets are held by the assessment of the business model and the assessment whether the contractual terms of the assets are solely payments of principal and interest (SPPI) on the principal amount outstanding. The classification of financial assets determines how they are accounted for and how they are measured on an ongoing basis.\n Determination of fair value and fair value hierarchy\n\n\nNote 38 Fair value determines the fair value of financial instruments with significant unobservable inputs (i.e. level\u00a03 financial\u00a0assets).The following is a description of Aegon\u2019s methods of determining fair value, and a quantification of its exposure to assets and\u00a0liabilities measured at fair value.Fair value is defined as the amount that would be received from the sale of an asset or paid to transfer a liability in\u00a0an\u00a0orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:\n \nIn the principal market for the asset or liability; or\u00a0 \n \nIn the absence of a principal market, in the most advantageous market for the asset or liability. \n\n\nAegon uses the following hierarchy for measuring and disclosing the fair value of assets and liabilities:\n \nLevel I: quoted prices (unadjusted) in active markets for identical assets or liabilities that Aegon can access at\u00a0the\u00a0measurement date; \n \nLevel 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 \n \nLevel III: inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) using\u00a0valuation techniques for which any significant input is not based on observable market data. \n\n\nThe best evidence of fair value is a quoted price in an actively traded market. In the event that the market for a financial instrument is not active or quoted market prices are not available, a valuation technique is used.The degree of judgment used in measuring the fair value of assets and liabilities generally inversely correlates with the level of observable valuation inputs. Aegon maximizes the use of observable inputs and minimizes the use of unobservable valuation inputs when measuring fair value. Financial instruments, for example, with quoted prices in active markets generally have more pricing observability, and therefore less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment.The assets and liabilities categorization within the fair value hierarchy is based on the lowest input that is significant to the fair value measurement.An active market is one in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The judgment as to whether a market is active may include, although not necessarily determinative, lower transaction volumes, reduced transaction sizes, and in some cases, no observable trading activity for short periods. In inactive markets, assurance is obtained that the transaction price provides evidence of fair value or it is determined that adjustments to transaction prices are necessary to measure the fair value of the instrument.The majority of valuation techniques employ only observable market data, and so the reliability of the fair value measurement is high. However, certain assets and liabilities are valued on the basis of valuation techniques that feature one or more significant market inputs that are unobservable and, for such assets and liabilities, the derivation of fair value is more judgmental. An instrument is classified in its entirety as valued using significant unobservable inputs (level 3) if, in the opinion of management, a significant proportion of the instrument\u2019s carrying amount is driven by unobservable inputs. \"Unobservable\" in this context means that there is little or no current market data available from which to determine the price at which an at-arm\u2019s length transaction would be likely to occur. It generally does not mean that there is no market data available at all upon which to base a determination of fair value. Additional information is provided in the table headed Effect of changes in significant unobservable assumptions to reasonably possible alternatives in note 38 Fair Value. While Aegon believes its valuation techniques are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain instruments (both financial and non-financial) could result in a different estimate of fair value at the reporting date.To operationalize Aegon\u2019s fair value hierarchy, individual instruments (both financial and non-financial) are assigned a fair value level based primarily on the type of instrument and the source of the prices (e.g., index, third-party pricing service, broker, internally modeled). Periodically, this logic for assigning fair value levels is reviewed to determine if any modifications are necessary in the context of the current market environment.\n a)\u00a0\u00a0 \u00a0Recognition of expected credit losses\n\n\nIFRS 9 outlines a \"three-stage\" model for impairment based on relative changes in credit quality since initial recognition:\n \nA financial instrument that is not credit-impaired on initial recognition is classified in \"Stage 1\"; \n \nIf a significant increase in credit risk (\"SICR\") since initial recognition is identified, the financial instrument is moved to \"Stage\u00a02\" but is not yet deemed to be credit-impaired (see \u201cSignificant increase in credit risk\u201d for further details); \n \nIf the financial instrument is credit-impaired, the financial instrument is then moved to \"Stage 3.\" \n\n\nCredit risk is continuously monitored by Aegon in all the above stages.Financial instruments in Stage 1 have their expected credit loss (ECL) measured at an amount equal to the portion of lifetime expected credit losses that result from default events possible within the follow 12 months. Financial instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit-impaired on initial recognition. Their ECL is always measured on a\u00a0lifetime basis.\u00a0\n \n \n\n \n \n \n \n \n \nStage 1 Impaired \n \n \nStage 2 Under-performing \n \n \nStage 3 Non-performing \n \n \n \n Purchased or Originated Credit Impaired (POCI)\n \n \n \n \n \n \nECL \n \n \n12 month ECL \n \n \nLifetime ECL \n \n \nLifetime ECL \n \n \nLifetime ECL \n \n \n \n \nProvision Trigger \n \n \nn.a. \n \n \nQuantitative and Qualitative Triggers \n \n \nQualitative Triggers \n \n \nQualitative Triggers \n \n \n \n \nDays Past Due (\"DPD\") Backstop \n \n \n \n Up to date and early arrears (< 30 DPD)\n \n \n \n \n \n > 30 DPD (rebuttable presumption)\n \n \n \n \n \n > 90 DPD (rebuttable presumption)\n \n \n \n \nn.a. \n \n \n \n \nInterest Income \n \n \nInterest calculated on gross carrying amount \n \n \nInterest calculated on gross carrying amount \n \n \nInterest calculated on net carrying amount \n \n \nInterest calculated on net carrying amount using a credit-adjusted effective interest rate \n \n \n\n\n\n\n\n\nFollowing this assessment, IFRS 9 requires the incorporation of multiple, forward looking macro- scenarios to drive the ECL provision.IFRS 9 requires that the measurement of ECL represent an unbiased probability-weighted amount that is to be determined by:\n \nEvaluating a range of possible outcomes;\u00a0 \n \nUse reasonable and supportable information available without undue cost and effort about past events; \n \nCurrent conditions; and\u00a0 \n \nForecasts of future economic conditions. \n\n\nWhen incorporating forward looking information, consideration should be given to the relevance of the information (and\u00a0the\u00a0availability of more relevant information) for each specific financial instrument or group of financial instruments. To\u00a0the extent relevant, forward-looking information used for the measurement of ECLs it needs to be consistent with that used\u00a0for\u00a0the\u00a0assessment of a significant increase in credit risk.Credit losses are calculated as the product of projected probability of default, loss given default and exposure at default and are discounted using an appropriate discount rate. The ECL is determined as the probability weighted discounted credit losses that are determined for different scenarios (i.e. base, positive, adverse).\u00a0Given the need to adapt the models to the different portfolio characteristics, all ECL models have different key judgments and assumptions. As such, the below paragraphs outline the key judgements and assumptions made by the Group in addressing the key requirements on a model-by-model basis.The Group employs different models to calculate the ECL on different asset classes.For bonds and private placements, the Group applies a global correlation model. It provides correlations of credit quality movements across different asset classes, linked with movements in the macro economy. A global correlation model is therefore used for determining the conditional PD and LGD, given a macroeconomic scenario. Unconditional PD and LGD curves are modelled with use of different methods for sovereign debt, corporate bonds and private placements.\u00a0For commercial mortgage loans and mortgage-backed securities, the parameters are estimated with commercial mortgage metrics that use corporate bond PD and LGD estimates further adjusted with other assumptions based on debt service coverage and loan-to-value ratios.\u00a0The Group applies a separate model for asset-backed securities, which pools the instruments based on the underlying collateral and estimates credit loss parameters collectively. Collateralized debt (loan) obligations (CDOs and CLOs) are special types of asset-backed securities to which a different set of models are applied depending on the region of the exposure.\n d)\u00a0\u00a0 \u00a0Measuring ECL \u2013 inputs, assumptions and estimation techniques\u00a0\n\n\nThe ECL is measured on either a \"12-month basis\" (Stage 1) or \"lifetime basis\" (Stages 2 and 3), depending on whether a\u00a0significant increase in credit risk has occurred since initial recognition or whether an asset is considered to be credit-impaired.\u00a0The expected credit losses are the discounted product of the Probability of Default, Exposure at Default, and Loss\u00a0Given\u00a0Default, defined as follows:\n \nThe PD represents the likelihood of a borrower defaulting on its financial obligation (as per \u201cDefinition of default and credit-impaired\u201d above), either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.\u00a0 \n \nEAD is based on the amounts the Group expects to be owed at the time of default.\u00a0 \n \nLoss Given Default represents Aegon\u2019s expectation of the extent of loss on a defaulted exposure. LGD varies by\u00a0type\u00a0of\u00a0counterparty, type and seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at the time of default. \n\n\nThe discount rate used in the ECL calculation is the original effective interest rate or an approximation thereof. The lifetime PD is calculated for a financial instrument that results in default by summing the probabilities of all future developments which end-up in the ECL. All possible future developments are enumerated and for each future development a probability is calculated by statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.\u00a0Forward-looking economic information is included in determining the 12-month and lifetime ECL, and lifetime PD by using a\u00a0set\u00a0of\u00a0variables describing the state of the macro economy as input in the calculation of the probability of default and prepayment.As described above, and subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the Group measures ECL considering the risk of default over the maximum contractual period (including any borrower\u2019s extension options) over which Aegon is exposed to credit risk, even if the Group considers a\u00a0longer\u00a0period.\u00a0There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.\n e)\u00a0\u00a0 \u00a0Forward-looking information incorporated in the ECL models\n\n\nThe assessment of significant increase in credit risk (SICR) and the calculation of ECL both incorporate forward-looking information. Aegon has performed historical analysis and identified the key economic variables impacting credit risk and expected credit losses for each portfolio.\u00a0These economic variables and their associated impact on the ECL and Lifetime PD vary by financial instrument. Expert judgment has also been applied in this process. Forecasts of these economic variables (the \u201cbase economic scenario\u201d) give\u00a0the best estimate view of the economy over the next five years. After five years, to project the economic variables out for the\u00a0full remaining lifetime of each instrument, a mean reversion approach has been used, which means that economic variables tend to either a long run average rate (e.g. for unemployment) or a long run average growth rate (e.g. GDP) over a period of three years. Statistical regression analysis has been performed to understand the impact changes in these macro-economic variables have had historically on default and prepayment rates.Using the base scenario as a starting point, three macro-economic scenarios are generated by applying shocks to the macro-economic variables in a positive and negative direction, taking into account their correlation as historically observed, resulting in a positive, neutral, or negative scenario. The shocks applied correspond to the historical average deviance from the long-term mean observed in the best/worst 10% of the historically observed quarters. The ECL is calculated for each of the three scenarios, multiplied by the scenario weighting, and summed. The use of multiple economic scenarios ensures that the ECL represents the best estimate of expected credit loss and is not merely the credit loss in the most likely scenario.As with any economic forecasts, the projections and likelihoods of occurrence are subject to a high degree of inherent uncertainty, and therefore, the actual outcomes may be significantly different to those projected. The Group considers these\u00a0forecasts to represent its best estimate of the possible outcomes.\n Economic variable assumptions\n\n\nThe most significant period-end assumptions used for the ECL estimate are set out below. The scenarios \u201cbase\u201d, \u201cupside\u201d, and\u00a0\u201cdownside\u201d were used for all portfolios.\n \n \n\n \n \n \n \nEconomic variable assumptions, December 31, 2024 \n \n \n \n \n2025 \n \n \n2026 \n \n \n2027 \n \n \n2028 \n \n \nUnits \n \n \n \n \nInterest rates \n \n \nBase \n \n \n4.33 \n \n \n4.26 \n \n \n4.24 \n \n \n4.18 \n \n \nInterest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n \n \n \n \nInterest rates \n \n \nUpside \n \n \n4.43 \n \n \n4.35 \n \n \n4.24 \n \n \n4.18 \n \n \nInterest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n \n \n \n \nInterest rates \n \n \nDownside \n \n \n3.17 \n \n \n3.74 \n \n \n3.94 \n \n \n4.04 \n \n \nInterest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n \n \n \n \nUnemployment rate \n \n \nBase \n \n \n4.08 \n \n \n4.09 \n \n \n4.05 \n \n \n4.01 \n \n \n \n (%, SA)\n \n \n \n \n \n \nUnemployment rate \n \n \nUpside \n \n \n3.13 \n \n \n3.44 \n \n \n3.42 \n \n \n3.42 \n \n \n \n (%, SA)\n \n \n \n \n \n \nUnemployment rate \n \n \nDownside \n \n \n8.23 \n \n \n7.46 \n \n \n6.18 \n \n \n5.00 \n \n \n \n (%, SA)\n \n \n \n \n \n \nHouse Price Index \n \n \nBase \n \n \n419.04 \n \n \n424.10 \n \n \n434.08 \n \n \n448.91 \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA)\n \n \n \n \n \n \nHouse Price Index \n \n \nUpside \n \n \n439.72 \n \n \n456.26 \n \n \n471.39 \n \n \n489.21 \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA)\n \n \n \n \n \n \nHouse Price Index \n \n \nDownside \n \n \n354.16 \n \n \n369.92 \n \n \n385.26 \n \n \n401.39 \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA)\n \n \n \n \n \n \nDomestic GDP \n \n \nBase \n \n \n23,973.45 \n \n \n24,343.12 \n \n \n24,819.66 \n \n \n25,356.09 \n \n \nBil. Ch. 2012 USD, SAAR2 \n \n \n \n \nDomestic GDP \n \n \nUpside \n \n \n24,319.86 \n \n \n24,807.47 \n \n \n25,341.29 \n \n \n25,943.15 \n \n \nBil. Ch. 2012 USD, SAAR2 \n \n \n \n \nDomestic GDP \n \n \nDownside \n \n \n22,959.57 \n \n \n23,369.09 \n \n \n24,147.35 \n \n \n24,980.66 \n \n \nBil. Ch. 2012 USD, SAAR2 \n \n \n \n \nEquity \n \n \nBase \n \n \n5,912.89 \n \n \n5,814.62 \n \n \n6,098.72 \n \n \n6,483.85 \n \n \nStandard & Poor's (S&P); Moody's Analytics Forecasted \n \n \n \n \nEquity \n \n \nUpside \n \n \n6,264.59 \n \n \n6,132.21 \n \n \n6,356.19 \n \n \n6,630.75 \n \n \nStandard & Poor's (S&P); Moody's Analytics Forecasted \n \n \n \n \nEquity \n \n \nDownside \n \n \n3,867.82 \n \n \n4,095.95 \n \n \n4,899.05 \n \n \n5,712.91 \n \n \nStandard & Poor's (S&P); Moody's Analytics Forecasted \n \n \n\n\n\n\n\n \n\n 1 NSA: National Security Agency.\n\n 2 SAAR: Seasonally adjusted annual rate.\n \n\n\n\n \n \n\n \n \n \n \nEconomic variable assumptions, December 31, 2023 \n \n \n \n \n2024 \n \n \n2025 \n \n \n2026 \n \n \n2027 \n \n \nUnits \n \n \n \n \nInterest rates \n \n \nBase \n \n \n4.11 \n \n \n4.04 \n \n \n4.02 \n \n \n4.03 \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1)\n \n \n \n \n \n \nInterest rates \n \n \nUpside \n \n \n4.21 \n \n \n4.13 \n \n \n4.02 \n \n \n4.03 \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1)\n \n \n \n \n \n \nInterest rates \n \n \nDownside \n \n \n2.31 \n \n \n3.24 \n \n \n3.71 \n \n \n3.89 \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1)\n \n \n \n \n \n \nUnemployment rate \n \n \nBase \n \n \n4.03 \n \n \n4.06 \n \n \n3.97 \n \n \n3.94 \n \n \n \n (%, SA)\n \n \n \n \n \n \nUnemployment rate \n \n \nUpside \n \n \n3.08 \n \n \n3.41 \n \n \n3.34 \n \n \n3.35 \n \n \n \n (%, SA)\n \n \n \n \n \n \nUnemployment rate \n \n \nDownside \n \n \n7.56 \n \n \n6.90 \n \n \n5.70 \n \n \n4.88 \n \n \n \n (%, SA)\n \n \n \n \n \n \nHouse Price Index \n \n \nBase \n \n \n400.12 \n \n \n393.70 \n \n \n394.21 \n \n \n403.50 \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA)\n \n \n \n \n \n \nHouse Price Index \n \n \nUpside \n \n \n419.87 \n \n \n423.62 \n \n \n428.16 \n \n \n439.72 \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA)\n \n \n \n \n \n \nHouse Price Index \n \n \nDownside \n \n \n339.91 \n \n \n347.29 \n \n \n352.66 \n \n \n363.59 \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA)\n \n \n \n \n \n \nDomestic GDP \n \n \nBase \n \n \n22,900.95 \n \n \n23,303.78 \n \n \n23,825.37 \n \n \n24,397.71 \n \n \nBil. Ch. 2012 USD, SAAR2 \n \n \n \n \nDomestic GDP \n \n \nUpside \n \n \n23,354.42 \n \n \n23,883.09 \n \n \n24,451.63 \n \n \n25,020.82 \n \n \nBil. Ch. 2012 USD, SAAR2 \n \n \n \n \nDomestic GDP \n \n \nDownside \n \n \n22,039.64 \n \n \n22,368.94 \n \n \n23,099.22 \n \n \n23,768.80 \n \n \nBil. Ch. 2012 USD, SAAR2 \n \n \n \n \nEquity \n \n \nBase \n \n \n4,672.66 \n \n \n4,796.24 \n \n \n5,043.19 \n \n \n5,368.63 \n \n \nStandard & Poor's (S&P); Moody's Analytics Forecasted \n \n \n \n \nEquity \n \n \nUpside \n \n \n4,950.59 \n \n \n5,058.20 \n \n \n5,256.09 \n \n \n5,490.26 \n \n \nStandard & Poor's (S&P); Moody's Analytics Forecasted \n \n \n \n \nEquity \n \n \nDownside \n \n \n2,904.90 \n \n \n3,226.25 \n \n \n3,942.26 \n \n \n4,603.90 \n \n \nStandard & Poor's (S&P); Moody's Analytics Forecasted \n \n \n\n\n\n\n\n \n\n 1 NSA: National Security Agency.\n\n 2 SAAR: Seasonally adjusted annual rate.\n \n\n\nThe weightings assigned to each economic scenario were as follows:\n \n \n\n \n \n \n \nWeightings \n \n \nBase \n \n \nUpside \n \n \nDownside \n \n \n \n \nOn December 31, 2024 \n \n \n40 \n \n \n30 \n \n \n30 \n \n \n \n \nOn December 31, 2023 \n \n \n40 \n \n \n30 \n \n \n30 \n \n \n\n\n\n\n\n\nOther forward-looking considerations not otherwise incorporated within the above scenarios, such as the impact of any regulatory, legislative or political changes, have also been considered, but are not deemed to have a material impact, and therefore, no adjustment has been made to the ECL for such factors. This process is reviewed and monitored for appropriateness on a quarterly basis.\n 29.3 Critical judgments and estimates\n\n\n\n 29.3.1 Fulfilment cash flows\n\n\nThe fulfillment cash flows comprise:\n \nEstimates of future cash flows; \n \nAn adjustment to reflect time value of money and the financial risks related to future cash flows, to the extent that the\u00a0financial risks are not included in the estimates of future cash flows and \n \nA risk adjustment for non-financial risk. \n\n\nEach measurement element requires the use of significant judgment and estimates.\n 29.3.1.1 Valuation methods\n\n\nAegon\u2019s objective in estimating future cash flows is to determine a range of scenarios that reflects the likely possible outcomes. Each scenario specifies the amount and timing of the cash flows for a particular outcome, and the estimated probability of that outcome. The cash flows from each scenario are discounted and weighted by the estimated probability of\u00a0that outcome to derive an expected present value.When determining the expected value of the full range of possible outcomes, the objective is to incorporate all reasonable and supportable information available without undue cost or effort in an unbiased way, rather than to identify every possible scenario. In some cases, relatively simple modeling provides an answer within an acceptable range of precision. In other cases, more complex valuation methods are required to satisfy the measurement objective. For example, if cash flows reflect a series of interrelated (implicit or explicit) options and respond in a non-linear fashion to changes in economic conditions, then Aegon often uses stochastic modeling techniques to estimate the expected present value. Stochastic modeling involves projecting future cash flows under a large number of possible economic scenarios for market variables such as interest rates and equity returns. Other methods that are used to measure non-linear cash flows include closed-form solutions and replicating portfolio techniques.\n 29.3.1.2 Actuarial assumptions\n\n\nWhen estimating future cash flows, Aegon sets actuarial assumptions for underwriting risk including policy claims (such as\u00a0mortality, longevity, or morbidity), policyholder behavior (such as lapses, surrender of policies or partial withdrawals), and property\u00a0& casualty loss ratios and expenses. Actuarial assumptions are reviewed annually, with the exception of expense assumptions, which might be updated more frequently as a result of the quarterly monitoring of actual expenses.\n Underwriting assumptions\n\n\nMortality tables are generally developed and\u00a0applied based on a blend of company experience and industry wide studies, taking into consideration product characteristics, own risk selection criteria, target market and past experience. Mortality experience is monitored through regular studies, the results of which are fed into the pricing cycle for new products and reflected in the liability calculation for in-force groups of contracts where appropriate. For contracts insuring survivorship or mortality, allowance is made for further longevity or mortality improvements. Morbidity assumptions are based on own claims severity and frequency experience, adjusted where appropriate for industry information. Industry surveys are used for judgment-based assumptions, such as morbidity improvement and cost of long-term care (LTC) inflation.Surrender and lapse rates depend on product features, policy duration, and external circumstances such as the interest rate environment and competitor behavior. For policies where policyholders are expected to have a financial incentive to choose a\u00a0favorable lapse timing based on the market conditions, a dynamic lapse assumption is utilized to reflect expected policyholder behavior when applying multiple scenarios in measurement. Own experience, as well as industry-published data, is used to establish assumptions. Lapse experience is correlated to mortality and morbidity levels, as higher or lower levels of surrenders may indicate future claims will be higher or lower than anticipated. Such correlations are accounted for in\u00a0the mortality and morbidity assumptions based on the emerging analysis of experience.Policyholder benefits that are directly linked to asset performance are projected at rates that are consistent with the discount rates applied. For cash flows like crediting rates, the projected cash flows reflect how the reporting unit would determine crediting rates in a given scenario based on the Group\u2019s crediting policies. Other management actions are taken into account to the extent that they are part of Aegon\u2019s regular policies and procedures.Given that Aegon applies the premium allocation approach to most of its non-life insurance business, actuarial assumptions related to (ultimate) loss ratio assumptions only impact the fulfillment cash flows for onerous groups of contracts with remaining coverage and for contracts with incurred claims. Aegon uses a range of loss reserving techniques to estimate (ultimate) claims ratios, using historical claims development data as well as market observable inputs. Large-ticket reported claims are assessed on an individual basis.\n Expense assumptions\n\n\nExpenses that are attributable to the fulfillment cash flows include acquisition expenses, maintenance expenses, and claims settlement costs, as well as overhead costs that Aegon considers to be unavoidable when fulfilling the in-force contracts. Investment expenses are included in the fulfillment cash flows for contracts that provide investment-related or investment-return services, as well as for contracts where Aegon performs investment activities that enhance the policyholders\u2019 benefits from insurance coverage. Aegon\u2019s expense assumptions are based on the current level of expenses, adjusted for future expense inflation and the impact of known one-off projects (such as planned cost-saving initiatives or projects to implement additional regulatory reporting requirements). In not-at-scale units, further adjustment is made to reflect a long-term scale of business.When allocating the attributable expenses to groups of contracts, Aegon leverages allocation approaches used for pricing or regulatory reporting. Where IFRS requires a greater level of granularity, additional allocation keys are applied that have been defined based on, for example, further expense studies. The expense inflation assumption is split into a financial component that is calibrated to market observables and a non-financial component that is set as an actuarial assumption. The non-financial component of the expense inflation assumption represents the estimated difference between general market inflation implied by the market and expense inflation that is specific to Aegon\u2019s product characteristics. Some inflation assumptions (such as LTC utilization and health medical inflation in the Americas) do not include a financial component but\u00a0are entirely set as an actuarial assumption, given that they are weakly correlated with general inflation indices and there\u00a0is no hedge market for such rates.\n Discount rates and other financial assumptions\n\n\nAegon adjusts the estimated future cash flows of a group of contracts to reflect the time value of money and the financial risks related to those cash flows, to the extent that the financial risks are not included in the estimates of cash flows. The\u00a0discount rates applied to the estimates of the future cash flows:\n \nReflect the time value of money, the characteristics of the cash flows and the liquidity characteristics of the insurance contracts; \n \nAre consistent with observable current market prices (if any) for financial instruments with cash flows whose characteristics are consistent with those of the insurance contracts, in terms of, for example, timing, currency, and liquidity; and \n \nExclude the effect of factors that influence observable market prices but do not affect the future cash flows of the\u00a0insurance contracts. \n\n\nNo implicit adjustments for non-financial risks are included in the discount rates, as the risk adjustment for non-financial risks is\u00a0explicitly included in the fulfillment cash flows.When determining the discount rates at the date of initial recognition of a group of contracts, Aegon uses weighted-average discount rates over the period that contracts in that group are issued.\u00a0IFRS explicitly mentions two calibration options for the discount rate, namely the \"top-down approach\" and \"bottom-up\" approach. Aegon has generalized both approaches into a direct discounting technique in which discount rates are determined as the sum of the risk-free rate plus a percentage of the illiquidity premium (ILP). The ILP is an extra spread that an investor can\u00a0earn by investing in a security that offers limited or no ability for the investor to exit the investment prior to its maturity. If\u00a0an\u00a0insurance liability is illiquid (meaning that the policyholder has limited or no ability to cash it in prior to maturity or contingency-based payment), the liability is discounted at a rate that includes an ILP because illiquid assets (earning an illiquidity premium) may be purchased to back or replicate that liability.\u00a0\n Risk-free yield curve\n\n\nAegon has identified various rates available in the EUR, GBP and USD markets that can be used as a basis for the risk-free yield curve, including EURIBOR swap rates for EUR, reformed Sterling Overnight Index Average (SONIA) for GBP, and Secured Overnight Funding Rates (SOFR) and US Treasury rates for USD. EURIBOR rates are adjusted for credit risk by subtracting a credit risk allowance. No adjustment is made to overnight swap rates and US Treasury rates, as the credit risk of these instruments is deemed negligible.A full risk-free yield curve is derived by first interpolating between tenors for which market data is available, and then extrapolating the yield curve beyond market observable maturities. Discount rates converge linearly in 10 years to an ultimate forward rate. A uniform last liquid point for EUR and USD is set at 30 years, GBP is set at 50 years. The ultimate forward rates reflect a long-term view on nominal interest rates and is set by management per currency, considering expected real interest rates and long-term inflation together with the current market environment. The ultimate forward rates have been reviewed as part of the annual Group economic assumptions update and revised to 3.40% effective December 31, 2024 (December 31, 2023: common level of 3.45%).Aegon reviews the risk-free last liquid point and ultimate forward rates quarterly which, although expected to be infrequent, may lead to assumption updates if there are significant changes in market conditions.\u00a0\n \n \n\n \n \n \n \nYield curves (zero coupon rates excluding ILP) December 31, 2024 \n \n \n1 year \n \n \n5 years \n \n \n10 years \n \n \n15 years \n \n \n20 years \n \n \n30 years \n \n \n \n \nEUR \n \n \n2.24% \n \n \n2.15% \n \n \n2.27% \n \n \n2.33% \n \n \n2.26% \n \n \n2.00% \n \n \n \n \nGBP \n \n \n4.46% \n \n \n4.04% \n \n \n4.07% \n \n \n4.23% \n \n \n4.30% \n \n \n4.23% \n \n \n \n \nUSD \n \n \n4.24% \n \n \n4.46% \n \n \n4.67% \n \n \n4.89% \n \n \n5.05% \n \n \n4.82% \n \n \n\n\n\n\n\n\n\n \n \n\n \n \n \n \nYield curves (zero coupon rates excluding ILP) December 31, 2023 \n \n \n1 year \n \n \n5 years \n \n \n10 years \n \n \n15 years \n \n \n20 years \n \n \n30 years \n \n \n \n \nEUR \n \n \n3.36% \n \n \n2.33% \n \n \n2.39% \n \n \n2.47% \n \n \n2.40% \n \n \n2.18% \n \n \n \n \nGBP \n \n \n4.74% \n \n \n3.35% \n \n \n3.28% \n \n \n3.40% \n \n \n3.43% \n \n \n3.35% \n \n \n \n \nUSD \n \n \n4.83% \n \n \n3.89% \n \n \n3.90% \n \n \n4.00% \n \n \n4.39% \n \n \n4.00% \n \n \n\n\n\n\n\n\n\n Illiquidity premium (ILP)\n\n\nAegon sets ILPs at the level of the reporting unit or major business unit, reflecting how it manages the investments and ALM risk for the given block of liabilities. For example, in the United States, Aegon has set ILPs by lines of business which has resulted in 11 ILP curves. For each unit, an ILP curve is constructed that is based on the market-observables returns on a reference portfolio of assets. The reference portfolio is based on the unit\u2019s actual holdings or investment policy target mix of fixed-interest securities\u00a0except for single premium products with the need to link returns to the actual asset mix, or products with needs of frequent hedging to cover guarantees where Aegon may choose to allow for short-term deviations from the target to \u00a0be included. The reference portfolio excludes alternative investments (such as equities and real estate investments).\u00a0To derive the ILP curve for respective lines of business, market observable spreads are sourced and adjusted for expected and unexpected default losses. The ILP is based on the weighted average of these adjusted spreads using the line of business reference portfolio.\u00a0The full ILP curve is derived by interpolating between the observable tenors and then extrapolating the yield linearly beyond the ILP last liquid point to the ultimate forward ILP. The last liquid point can be set separately for each duration bucket or, as\u00a0a\u00a0practical simplification, as a single point in time for the entire reference portfolio. The ultimate forward spread is set based on the historical 50th percentile spread adjusted for expected and unexpected default losses.Aegon uses the expected default loss from historical default data plus an adjustment for default risk premium. The adjustment for the default risk premium or the unexpected default loss is calculated by applying 30% on top of the expected default, which is based on the management's judgment.Aegon updates the reference portfolio quarterly, and the ILP last liquid point and ILP ultimate forward rate are revised accordingly. The most significant products of Aegon Ltd. are presented below. These ILP curves are added to the risk-free yields of the currency in which the cash flows of the products are denominated.\n \n \n\n \n \n \n \nILP per portfolio, December 31, 2024 \n \n \nCountry \n \n \n1 year \n \n \n5 years \n \n \n10 years \n \n \n15 years \n \n \n20 years \n \n \n30 years \n \n \n \n \nFixed Deferred Annuity \n \n \nUS \n \n \n0.80% \n \n \n0.88% \n \n \n1.00% \n \n \n1.14% \n \n \n1.14% \n \n \n1.15% \n \n \n \n \nIndexed Universal Life \n \n \nUS \n \n \n0.90% \n \n \n1.02% \n \n \n1.09% \n \n \n1.22% \n \n \n1.21% \n \n \n1.22% \n \n \n \n \nLong-Term Care \n \n \nUS \n \n \n0.72% \n \n \n0.73% \n \n \n0.77% \n \n \n1.06% \n \n \n1.14% \n \n \n1.28% \n \n \n \n \nTraditional Life \n \n \nUS \n \n \n0.75% \n \n \n0.77% \n \n \n0.80% \n \n \n1.09% \n \n \n1.15% \n \n \n1.26% \n \n \n \n \nUniversal Life \n \n \nUS \n \n \n0.76% \n \n \n0.79% \n \n \n0.81% \n \n \n1.05% \n \n \n1.11% \n \n \n1.24% \n \n \n \n \nVariable Annuities \n \n \nUS \n \n \n0.55% \n \n \n0.63% \n \n \n0.64% \n \n \n0.65% \n \n \n0.64% \n \n \n0.66% \n \n \n \n \nAnnuities \n \n \nUK \n \n \n0.98% \n \n \n0.98% \n \n \n0.98% \n \n \n0.98% \n \n \n0.98% \n \n \n0.96% \n \n \n \n \nIndividual Protection \n \n \nUK \n \n \n0.47% \n \n \n0.47% \n \n \n0.47% \n \n \n0.47% \n \n \n0.47% \n \n \n0.45% \n \n \n\n\n\n\n\n\n\n \n \n\n \n \n \n \nILP per portfolio, December 31, 2023 \n \n \nCountry \n \n \n1 year \n \n \n5 years \n \n \n10 years \n \n \n15 years \n \n \n20 years \n \n \n30 years \n \n \n \n \nFixed Deferred Annuity \n \n \nUS \n \n \n1.15% \n \n \n1.21% \n \n \n1.12% \n \n \n1.11% \n \n \n1.11% \n \n \n1.11% \n \n \n \n \nIndexed Universal Life \n \n \nUS \n \n \n1.20% \n \n \n1.24% \n \n \n1.20% \n \n \n1.18% \n \n \n1.18% \n \n \n1.21% \n \n \n \n \nLong-Term Care \n \n \nUS \n \n \n0.97% \n \n \n0.98% \n \n \n0.98% \n \n \n1.15% \n \n \n1.20% \n \n \n1.30% \n \n \n \n \nTraditional Life \n \n \nUS \n \n \n0.99% \n \n \n1.01% \n \n \n1.02% \n \n \n1.15% \n \n \n1.19% \n \n \n1.28% \n \n \n \n \nUniversal Life \n \n \nUS \n \n \n1.01% \n \n \n1.03% \n \n \n1.02% \n \n \n1.13% \n \n \n1.17% \n \n \n1.26% \n \n \n \n \nVariable Annuities \n \n \nUS \n \n \n0.69% \n \n \n0.69% \n \n \n0.68% \n \n \n0.67% \n \n \n0.64% \n \n \n0.67% \n \n \n \n \nAnnuities \n \n \nUK \n \n \n0.89% \n \n \n0.89% \n \n \n0.89% \n \n \n0.89% \n \n \n0.89% \n \n \n0.76% \n \n \n \n \nIndividual Protection \n \n \nUK \n \n \n0.49% \n \n \n0.49% \n \n \n0.49% \n \n \n0.49% \n \n \n0.49% \n \n \n0.40% \n \n \n\n\n\n\n\n\n\n Illiquidity factor\n\n\nThe illiquidity factor reflects the liquidity characteristics of a certain group of insurance contracts.\u00a0 Groups of contracts whose cash flows are not dependent on the underlying assets are assigned an illiquidity factor of 100%. Groups of contracts for which the cash flows predominantly vary with the underlying assets are assigned an illiquidity factor of 0%. For example, Aegon UK does not apply an illiquidity factor to the Unit Linked products. For a few products that include both types of cash flows, such as US variable annuity products with guaranteed minimum withdrawal benefits, a combination of 100% and 0% ILP is used.\n Other significant financial assumptions\n\n\nInterest rate volatilities are modeled based on swaption prices, in line with current market pricing.\n Risk adjustment for non-financial risk\n\n\nThe risk adjustment for non-financial risk is included explicitly as a separate component of the fulfillment cash flows. It reflects the compensation that Aegon requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as it fulfils insurance contracts.\u00a0The non-financial risks considered include mortality, morbidity, policyholder behavior, expense, and product specific operational risk. Non-financial risks that do not arise from the insurance contracts, such as general operational risk, are\u00a0not\u00a0reflected in the risk adjustment. The risk adjustment reflects both the risk that actual experience differs from the best estimate assumption used to project future cash flows due to mis-estimation (parameter risk), as well as the risk of random fluctuations around the true estimates (contagion risk).\u00a0Diversification benefits are recognized at the Group level. To align with market practice, Aegon only reflects the degree of diversification between non-financial risks, and contrary to its pricing methodology, ignores diversification benefits between financial and non-financial risks. Diversification effects include the impact of reinsurance ceded, as well as insurance contracts classified as held for sale.Aegon generally applies a simplified confidence interval technique which estimates the risk adjustment for non-financial risk using a confidence level (probability of sufficiency) approach at the 80th percentile. Under this approach, a probability distribution is assumed for each particular risk and the amount above the expected present value of future cash flows determined (using a shock factor). The impacts for each risk are then aggregated using a correlation matrix, reflecting diversification between the various non-financial risk types. For some products, Aegon measures contagion risk using the\u00a0Conditional Tail Expectation technique at the 75th percentile. Regardless of the technique applied, the confidence interval is computed across the entire product lifetime in order to fully reflect the risk.\u00a0\n Changes in methods and inputs used to measure fulfillment cash flows\n\n\nActuarial assumptions are reviewed periodically in the second quarter for the United States and in the fourth quarter for Europe and Asia, based on historical experience, observable market data, including market transactions such as acquisitions and reinsurance transactions, anticipated trends, and legislative changes. Similarly, the models and systems used for determining our liabilities and reinsurance assets are reviewed periodically, and if deemed necessary, updated based on emerging best practice and available technology.\u00a0During 2024, Aegon implemented actuarial assumption and model updates which are mainly related to Aegon\u2019s business in\u00a0the Americas.Assumption updates (non-financial assumptions) are absorbed in the CSM where there are sufficient balances. The change in CSM will impact the amount amortized in the current period and all prospective periods. The total pre-tax impact of non-financial assumption changes at the end of 2024 is a EUR 489 million increase in liabilities. Most of the impact was related to updated mortality assumptions for Protection Solutions and Financial Assets lines of business, where the book has been experiencing volatile and unfavorable claims experience. As a result, the universal life and individual life products are now mainly onerous, however\u00a0there is a limited impact on total liabilities as it is offset by\u00a0the movements in CSM.Aegon did not make any significant changes to the contract boundaries in the current reporting period, nor did it update the\u00a0approaches used to determine the discount rate or estimate the risk adjustment for non-financial risk.\n 29.3.2 Relevant other significant judgments\n\n\nIn addition to the judgments and estimates made in measuring the fulfillment cash flows that are described above, other\u00a0significant judgments are applied in determining:\n \nThe relative weighting of coverage units when multiple services are provided; \n \nThe non-distinct investment component, which is excluded from insurance revenue; and \n \nThe adjustment for nonperformance risk that is applied to reinsurance contracts held. \n\n\n\n 29.3.2.1 Weighting of coverage units\n\n\nOften one single metric can be defined that captures multiple services provided under one contract. Different approaches are\u00a0used by Aegon when assessing the relative weighting of the benefits of different services. In some cases, the weighting is done in a way that directly flows from the composition of the benefits under the contract. For example, for a life insurance product with an account value that can be surrendered, coverage units can be based on the total death benefit as this amount comprises both the account value (investment service) and the excess death benefits (insurance service). In other cases, significant judgment is required. For example, for US long-term care insurance products, multiple drivers impact the maximum daily benefit to which a policyholder could be entitled. To reflect this, the coverage unit is computed using a combination of the\u00a0initial allowed benefit, the benefit period, as well as adjustments for any inflation protection and if the policy is paid-up on the\u00a0contingent non-forfeiture option.\n 29.3.2.2 Investment component\n\n\nAegon reports insurance revenue and insurance service expenses excluding non-distinct investment components. An\u00a0investment component is defined as the amount that an insurance contract requires Aegon to repay to a policyholder, even\u00a0if\u00a0the insured event does not occur.Aegon determines the investment component when a claim is incurred as an amount is released from the liability for\u00a0remaining coverage. When doing so it considers which payments would have been possible immediately prior to the claims date. For example, a payment might have needed to be made to the policyholder in light of policy surrender, the uptake of a policy loan or the partial withdrawal, or the transfer of an insurance policy to another insurer. The investment component is defined net of any penalty or similar charges.\n 29.3.2.3 Adjustment to reinsurance contracts held for non-performance risk\n\n\nThe nonperformance risk by the reinsurer is based on Aegon\u2019s credit exposure, net of collateral, and the perceived counterparty default risk. In assessing the credit exposure, Aegon takes into account treaty provisions for non-performance, such as the automatic recapture of the reinsured business on default of the reinsurer.\u00a0When estimating a reinsurer\u2019s default risk, Aegon considers the current financial condition and credit standing of the reinsurer, expert judgment specific to the local reinsurance market and historical data (such as Moody\u2019s loss given default rates). The\u00a0ultimate adjustment reflects the risk of potential reinsurance counterparty failure due to default (i.e. credit events), as\u00a0well\u00a0as disputes resulting in reduced payments and the potential for current conditions to change over time.\n Valuation techniques and significant unobservable inputs\n\n\nThe table below presents information about the\u00a0valuation techniques and significant unobservable inputs used for recurring fair value measurements for certain Level III financial instruments.\n \n \n\n \n \n \n \n \n \nValuation technique 1 \n \n \nSignificant unobservable input 2 \n \n \nDecember 31, 2024 \n \n \n \n Range (weighted average)\n \n \n \n \nDecember 31, 2023 \n \n \n \n Range (weighted average)\n \n \n \n \n \n \nAssets carried at fair value \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nFair value through OCI \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nShares \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNet asset value \n \n \nn.a. \n \n \n- \n \n \nn.a. \n \n \n- \n \n \nn.a. \n \n \n \n \n \n \nOther \n \n \nn.a. \n \n \n- \n \n \nn.a. \n \n \n4 \n \n \nn.a. \n \n \n \n \n \n \n \n \n \n \n- \n \n \n \n \n4 \n \n \n \n \n \n \nDebt securities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nBroker quote \n \n \nn.a. \n \n \n688 \n \n \nn.a. \n \n \n416 \n \n \nn.a. \n \n \n \n \n \n \nDiscounted cash flow \n \n \nConstant Prepayment Rate \n \n \n28 \n \n \n21.11% \n \n \n2 \n \n \n1.81% \n \n \n \n \n \n \nOther \n \n \nn.a. \n \n \n83 \n \n \nn.a. \n \n \n98 \n \n \nn.a. \n \n \n \n \n \n \n \n \n \n \n799 \n \n \n \n \n516 \n \n \n \n \n \n \nOther investments at fair value \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nInvestment funds \n \n \nNet asset value \n \n \nn.a. \n \n \n- \n \n \nn.a. \n \n \n- \n \n \nn.a. \n \n \n \n \nOther \n \n \nOther \n \n \nn.a. \n \n \n- \n \n \nn.a. \n \n \n9 \n \n \nn.a. \n \n \n \n \n \n \n \n \n \n \n- \n \n \n \n \n9 \n \n \n \n \n \n \nOn December 31 \n \n \n \n \n \n \n799 \n \n \n \n \n530 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nFair value through profit or loss \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nShares \n \n \nNet asset value \n \n \nn.a. \n \n \n83 \n \n \nn.a. \n \n \n91 \n \n \nn.a. \n \n \n \n \nShares \n \n \nBroker quote \n \n \nn.a. \n \n \n3 \n \n \nn.a. \n \n \n4 \n \n \nn.a. \n \n \n \n \nDebt securities \n \n \nBroker quote \n \n \nn.a. \n \n \n94 \n \n \nn.a. \n \n \n80 \n \n \nn.a. \n \n \n \n \nDebt securities \n \n \nOther \n \n \nn.a. \n \n \n13 \n \n \nn.a. \n \n \n6 \n \n \nn.a. \n \n \n \n \n \n \n \n \n \n \n193 \n \n \n \n \n180 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nOther investments at fair value \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nInvestment funds \n \n \nNet asset value \n \n \nn.a. \n \n \n3,633 \n \n \n \n \n3,532 \n \n \n \n \n \n \nTax credit investments \n \n \nDiscounted cash flow \n \n \nDiscount rate \n \n \n823 \n \n \n6.72% \n \n \n705 \n \n \n6.88% \n \n \n \n \nLoans \n \n \nOther \n \n \nn.a. \n \n \n82 \n \n \n \n \n- \n \n \n \n \n \n \n \n \n \n \n \n \n4,538 \n \n \n \n \n4,237 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal assets at fair value 3 \n \n \n \n \n \n \n5,530 \n \n \n \n \n4,947 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nLiabilities carried at fair value \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nDerivatives \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nEmbedded derivatives in insurance contracts \n \n \nDiscounted cash flow \n \n \nOwn credit spread \n \n \n- \n \n \nn.a \n \n \n3 \n \n \nn.a \n \n \n \n \nOther \n \n \nDiscounted cash flow \n \n \nOther \n \n \n- \n \n \nn.a \n \n \n3 \n \n \nn.a \n \n \n \n \nTotal liabilities at fair value \n \n \n \n \n \n \n- \n \n \n \n \n6 \n \n \n \n \n\n\n\n\n\n \n\n 1 Other in the table above (column Valuation technique) includes investments for which the fair value is uncorroborated and no broker quote is received.\n\n 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.\n\n 3 Investments where the policyholder bears the risk are excluded from the table above and from the disclosure regarding reasonably possible alternative assumptions. Assets where the policyholder bears the risk, and their returns, belong to policyholders and do not impact Aegon\u2019s net result or equity. The effect on total assets is offset by the effect on total liabilities.\n \n\n\nFor reference purposes, the valuation techniques included in the table above are described in more detail on the following pages.", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f12476m5706p": { "value": "\nIn preparing these consolidated financial statements, Aegon has made judgments, estimates and assumptions that affect the\u00a0application of the Group\u2019s accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual\u00a0results may differ from these estimates.
Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are the fair value of certain invested assets and derivatives (please\u00a0see\u00a0note 38 Fair value), the measurement of (re)insurance contracts and investment contracts with discretionary participating features (please see note 29 Insurance contracts), and the measurement of the expected credit loss allowance (please see note 4 Financial risks).\u00a0
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.
\nWhen making judgments, estimates, and assumptions, Aegon has taken into consideration the current macro-economic context, like the conflicts between Ukraine and Russia and between Israel and Hamas, which continued in 2024. In addition to causing a humanitarian crisis, these events impacted global financial markets and caused significant economic turbulence. Aegon closely monitors financial and wider economic developments to understand our exposure to potential shocks in the markets where we invest, and Aegon works proactively to mitigate related risks.
\nThe consolidated financial statements of Aegon have been prepared assuming a going concern basis of accounting based on the reasonable assumption that the Company is, and will be, able to continue its normal course of business in the foreseeable future. Relevant facts and circumstances relating to the consolidated financial position on December 31, 2024, were assessed in order to reach the going concern assumption. The main areas assessed are financial performance, capital adequacy, financial position and flexibility, liquidity, ability to access capital markets, leverage ratios and the level of Cash Capital at Holding. For further details, see note 37 Capital management and solvency. Considering all these areas management concluded that the going concern assumption for Aegon is appropriate in preparing the consolidated financial statements and there is no significant doubt about going concern.
\nInformation about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to\u00a0the carrying amount of insurance related assets and liabilities within the year ending December 31, 2024, is included in note\u00a029 Insurance contracts, reinsurance contracts held and investment contracts with discretionary participation features.
\nThe measurement of the expected credit loss (ECL) allowance for financial assets measured at amortized cost and FVOCI is\u00a0an\u00a0area that requires the use of complex models and significant assumptions about future economic conditions and credit behavior (e.g. the likelihood of customers defaulting and the resulting losses). Explanation of the inputs, assumptions, and estimation techniques used in measuring ECL is further detailed in note 4.2 Credit risk, which also sets out key sensitivities of\u00a0the ECL to changes in these elements.\u00a0
Detailed information about the judgments and estimates made by the Group and information incorporating the forward-looking information into the measurement of the ECL is set out in note 4.2 Credit risk.
\nThe classification of financial assets is based on Aegon\u2019s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. Aegon determines within which classification the financial assets are held by the assessment of the business model and the assessment whether the contractual terms of the assets are solely payments of principal and interest (SPPI) on the principal amount outstanding. The classification of financial assets determines how they are accounted for and how they are measured on an ongoing basis.
\nNote 38 Fair value determines the fair value of financial instruments with significant unobservable inputs (i.e. level\u00a03 financial\u00a0assets).
The following is a description of Aegon\u2019s methods of determining fair value, and a quantification of its exposure to assets and\u00a0liabilities measured at fair value.
Fair value is defined as the amount that would be received from the sale of an asset or paid to transfer a liability in\u00a0an\u00a0orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:
In the principal market for the asset or liability; or\u00a0
In the absence of a principal market, in the most advantageous market for the asset or liability.
Aegon uses the following hierarchy for measuring and disclosing the fair value of assets and liabilities:
Level I: quoted prices (unadjusted) in active markets for identical assets or liabilities that Aegon can access at\u00a0the\u00a0measurement 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\u00a0valuation techniques for which any significant input is not based on observable market data.
The best evidence of fair value is a quoted price in an actively traded market. In the event that the market for a financial instrument is not active or quoted market prices are not available, a valuation technique is used.
The degree of judgment used in measuring the fair value of assets and liabilities generally inversely correlates with the level of observable valuation inputs. Aegon maximizes the use of observable inputs and minimizes the use of unobservable valuation inputs when measuring fair value. Financial instruments, for example, with quoted prices in active markets generally have more pricing observability, and therefore less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment.
The assets and liabilities categorization within the fair value hierarchy is based on the lowest input that is significant to the fair value measurement.
An active market is one in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The judgment as to whether a market is active may include, although not necessarily determinative, lower transaction volumes, reduced transaction sizes, and in some cases, no observable trading activity for short periods. In inactive markets, assurance is obtained that the transaction price provides evidence of fair value or it is determined that adjustments to transaction prices are necessary to measure the fair value of the instrument.
The majority of valuation techniques employ only observable market data, and so the reliability of the fair value measurement is high. However, certain assets and liabilities are valued on the basis of valuation techniques that feature one or more significant market inputs that are unobservable and, for such assets and liabilities, the derivation of fair value is more judgmental. An instrument is classified in its entirety as valued using significant unobservable inputs (level 3) if, in the opinion of management, a significant proportion of the instrument\u2019s carrying amount is driven by unobservable inputs. \"Unobservable\" in this context means that there is little or no current market data available from which to determine the price at which an at-arm\u2019s length transaction would be likely to occur. It generally does not mean that there is no market data available at all upon which to base a determination of fair value. Additional information is provided in the table headed Effect of changes in significant unobservable assumptions to reasonably possible alternatives in note 38 Fair Value. While Aegon believes its valuation techniques are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain instruments (both financial and non-financial) could result in a different estimate of fair value at the reporting date.
To operationalize Aegon\u2019s fair value hierarchy, individual instruments (both financial and non-financial) are assigned a fair value level based primarily on the type of instrument and the source of the prices (e.g., index, third-party pricing service, broker, internally modeled). Periodically, this logic for assigning fair value levels is reviewed to determine if any modifications are necessary in the context of the current market environment.
\nIFRS 9 outlines a \"three-stage\" model for impairment based on relative changes in credit quality since initial recognition:
A financial instrument that is not credit-impaired on initial recognition is classified in \"Stage 1\";
If a significant increase in credit risk (\"SICR\") since initial recognition is identified, the financial instrument is moved to \"Stage\u00a02\" but is not yet deemed to be credit-impaired (see \u201cSignificant increase in credit risk\u201d for further details);
If the financial instrument is credit-impaired, the financial instrument is then moved to \"Stage 3.\"
Credit risk is continuously monitored by Aegon in all the above stages.
Financial instruments in Stage 1 have their expected credit loss (ECL) measured at an amount equal to the portion of lifetime expected credit losses that result from default events possible within the follow 12 months. Financial instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit-impaired on initial recognition. Their ECL is always measured on a\u00a0lifetime basis.\u00a0
| \n | \n\n \n Stage 1 Impaired | \n \n \n Stage 2 Under-performing | \n \n \n Stage 3 Non-performing | \n \n \n \n \n Purchased or Originated Credit Impaired (POCI) \n | \n
| \n \n ECL | \n \n \n 12 month ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n
| \n \n Provision Trigger | \n \n \n n.a. | \n \n \n Quantitative and Qualitative Triggers | \n \n \n Qualitative Triggers | \n \n \n Qualitative Triggers | \n
| \n \n Days Past Due (\"DPD\") Backstop | \n \n \n \n \n Up to date and early arrears (< 30 DPD) \n | \n \n \n \n \n > 30 DPD (rebuttable presumption) \n | \n \n \n \n \n > 90 DPD (rebuttable presumption) \n | \n \n \n n.a. | \n
| \n \n Interest Income | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on net carrying amount | \n \n \n Interest calculated on net carrying amount using a credit-adjusted effective interest rate | \n
Following this assessment, IFRS 9 requires the incorporation of multiple, forward looking macro- scenarios to drive the ECL provision.
IFRS 9 requires that the measurement of ECL represent an unbiased probability-weighted amount that is to be determined by:
Evaluating a range of possible outcomes;\u00a0
Use reasonable and supportable information available without undue cost and effort about past events;
Current conditions; and\u00a0
Forecasts of future economic conditions.
When incorporating forward looking information, consideration should be given to the relevance of the information (and\u00a0the\u00a0availability of more relevant information) for each specific financial instrument or group of financial instruments. To\u00a0the extent relevant, forward-looking information used for the measurement of ECLs it needs to be consistent with that used\u00a0for\u00a0the\u00a0assessment of a significant increase in credit risk.
Credit losses are calculated as the product of projected probability of default, loss given default and exposure at default and are discounted using an appropriate discount rate. The ECL is determined as the probability weighted discounted credit losses that are determined for different scenarios (i.e. base, positive, adverse).\u00a0
Given the need to adapt the models to the different portfolio characteristics, all ECL models have different key judgments and assumptions. As such, the below paragraphs outline the key judgements and assumptions made by the Group in addressing the key requirements on a model-by-model basis.
The Group employs different models to calculate the ECL on different asset classes.
For bonds and private placements, the Group applies a global correlation model. It provides correlations of credit quality movements across different asset classes, linked with movements in the macro economy. A global correlation model is therefore used for determining the conditional PD and LGD, given a macroeconomic scenario. Unconditional PD and LGD curves are modelled with use of different methods for sovereign debt, corporate bonds and private placements.\u00a0
For commercial mortgage loans and mortgage-backed securities, the parameters are estimated with commercial mortgage metrics that use corporate bond PD and LGD estimates further adjusted with other assumptions based on debt service coverage and loan-to-value ratios.\u00a0
The Group applies a separate model for asset-backed securities, which pools the instruments based on the underlying collateral and estimates credit loss parameters collectively. Collateralized debt (loan) obligations (CDOs and CLOs) are special types of asset-backed securities to which a different set of models are applied depending on the region of the exposure.
\nThe ECL is measured on either a \"12-month basis\" (Stage 1) or \"lifetime basis\" (Stages 2 and 3), depending on whether a\u00a0significant increase in credit risk has occurred since initial recognition or whether an asset is considered to be credit-impaired.\u00a0
The expected credit losses are the discounted product of the Probability of Default, Exposure at Default, and Loss\u00a0Given\u00a0Default, defined as follows:
The PD represents the likelihood of a borrower defaulting on its financial obligation (as per \u201cDefinition of default and credit-impaired\u201d above), either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.\u00a0
EAD is based on the amounts the Group expects to be owed at the time of default.\u00a0
Loss Given Default represents Aegon\u2019s expectation of the extent of loss on a defaulted exposure. LGD varies by\u00a0type\u00a0of\u00a0counterparty, type and seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at the time of default.
The discount rate used in the ECL calculation is the original effective interest rate or an approximation thereof. The lifetime PD is calculated for a financial instrument that results in default by summing the probabilities of all future developments which end-up in the ECL. All possible future developments are enumerated and for each future development a probability is calculated by statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.\u00a0
Forward-looking economic information is included in determining the 12-month and lifetime ECL, and lifetime PD by using a\u00a0set\u00a0of\u00a0variables describing the state of the macro economy as input in the calculation of the probability of default and prepayment.
As described above, and subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the Group measures ECL considering the risk of default over the maximum contractual period (including any borrower\u2019s extension options) over which Aegon is exposed to credit risk, even if the Group considers a\u00a0longer\u00a0period.\u00a0
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of significant increase in credit risk (SICR) and the calculation of ECL both incorporate forward-looking information. Aegon has performed historical analysis and identified the key economic variables impacting credit risk and expected credit losses for each portfolio.\u00a0
These economic variables and their associated impact on the ECL and Lifetime PD vary by financial instrument. Expert judgment has also been applied in this process. Forecasts of these economic variables (the \u201cbase economic scenario\u201d) give\u00a0the best estimate view of the economy over the next five years. After five years, to project the economic variables out for the\u00a0full remaining lifetime of each instrument, a mean reversion approach has been used, which means that economic variables tend to either a long run average rate (e.g. for unemployment) or a long run average growth rate (e.g. GDP) over a period of three years. Statistical regression analysis has been performed to understand the impact changes in these macro-economic variables have had historically on default and prepayment rates.
Using the base scenario as a starting point, three macro-economic scenarios are generated by applying shocks to the macro-economic variables in a positive and negative direction, taking into account their correlation as historically observed, resulting in a positive, neutral, or negative scenario. The shocks applied correspond to the historical average deviance from the long-term mean observed in the best/worst 10% of the historically observed quarters. The ECL is calculated for each of the three scenarios, multiplied by the scenario weighting, and summed. The use of multiple economic scenarios ensures that the ECL represents the best estimate of expected credit loss and is not merely the credit loss in the most likely scenario.
As with any economic forecasts, the projections and likelihoods of occurrence are subject to a high degree of inherent uncertainty, and therefore, the actual outcomes may be significantly different to those projected. The Group considers these\u00a0forecasts to represent its best estimate of the possible outcomes.
\nThe most significant period-end assumptions used for the ECL estimate are set out below. The scenarios \u201cbase\u201d, \u201cupside\u201d, and\u00a0\u201cdownside\u201d were used for all portfolios.
| \n \n Economic variable assumptions, December 31, 2024 | \n \n | \n\n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.33 | \n \n \n 4.26 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.43 | \n \n \n 4.35 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 3.17 | \n \n \n 3.74 | \n \n \n 3.94 | \n \n \n 4.04 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.08 | \n \n \n 4.09 | \n \n \n 4.05 | \n \n \n 4.01 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.13 | \n \n \n 3.44 | \n \n \n 3.42 | \n \n \n 3.42 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.23 | \n \n \n 7.46 | \n \n \n 6.18 | \n \n \n 5.00 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 419.04 | \n \n \n 424.10 | \n \n \n 434.08 | \n \n \n 448.91 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 439.72 | \n \n \n 456.26 | \n \n \n 471.39 | \n \n \n 489.21 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 354.16 | \n \n \n 369.92 | \n \n \n 385.26 | \n \n \n 401.39 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 23,973.45 | \n \n \n 24,343.12 | \n \n \n 24,819.66 | \n \n \n 25,356.09 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,319.86 | \n \n \n 24,807.47 | \n \n \n 25,341.29 | \n \n \n 25,943.15 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,959.57 | \n \n \n 23,369.09 | \n \n \n 24,147.35 | \n \n \n 24,980.66 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 5,912.89 | \n \n \n 5,814.62 | \n \n \n 6,098.72 | \n \n \n 6,483.85 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,264.59 | \n \n \n 6,132.21 | \n \n \n 6,356.19 | \n \n \n 6,630.75 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 3,867.82 | \n \n \n 4,095.95 | \n \n \n 4,899.05 | \n \n \n 5,712.91 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions, December 31, 2023 | \n \n | \n\n \n 2024 | \n \n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.11 | \n \n \n 4.04 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.21 | \n \n \n 4.13 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 2.31 | \n \n \n 3.24 | \n \n \n 3.71 | \n \n \n 3.89 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.03 | \n \n \n 4.06 | \n \n \n 3.97 | \n \n \n 3.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.08 | \n \n \n 3.41 | \n \n \n 3.34 | \n \n \n 3.35 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 7.56 | \n \n \n 6.90 | \n \n \n 5.70 | \n \n \n 4.88 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 400.12 | \n \n \n 393.70 | \n \n \n 394.21 | \n \n \n 403.50 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 419.87 | \n \n \n 423.62 | \n \n \n 428.16 | \n \n \n 439.72 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 339.91 | \n \n \n 347.29 | \n \n \n 352.66 | \n \n \n 363.59 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 22,900.95 | \n \n \n 23,303.78 | \n \n \n 23,825.37 | \n \n \n 24,397.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 23,354.42 | \n \n \n 23,883.09 | \n \n \n 24,451.63 | \n \n \n 25,020.82 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,039.64 | \n \n \n 22,368.94 | \n \n \n 23,099.22 | \n \n \n 23,768.80 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 4,672.66 | \n \n \n 4,796.24 | \n \n \n 5,043.19 | \n \n \n 5,368.63 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 4,950.59 | \n \n \n 5,058.20 | \n \n \n 5,256.09 | \n \n \n 5,490.26 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 2,904.90 | \n \n \n 3,226.25 | \n \n \n 3,942.26 | \n \n \n 4,603.90 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
The weightings assigned to each economic scenario were as follows:
| \n \n Weightings | \n \n \n Base | \n \n \n Upside | \n \n \n Downside | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2023 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking considerations not otherwise incorporated within the above scenarios, such as the impact of any regulatory, legislative or political changes, have also been considered, but are not deemed to have a material impact, and therefore, no adjustment has been made to the ECL for such factors. This process is reviewed and monitored for appropriateness on a quarterly basis.
\nThe fulfillment cash flows comprise:
Estimates of future cash flows;
An adjustment to reflect time value of money and the financial risks related to future cash flows, to the extent that the\u00a0financial risks are not included in the estimates of future cash flows and
A risk adjustment for non-financial risk.
Each measurement element requires the use of significant judgment and estimates.
\nAegon\u2019s objective in estimating future cash flows is to determine a range of scenarios that reflects the likely possible outcomes. Each scenario specifies the amount and timing of the cash flows for a particular outcome, and the estimated probability of that outcome. The cash flows from each scenario are discounted and weighted by the estimated probability of\u00a0that outcome to derive an expected present value.
When determining the expected value of the full range of possible outcomes, the objective is to incorporate all reasonable and supportable information available without undue cost or effort in an unbiased way, rather than to identify every possible scenario. In some cases, relatively simple modeling provides an answer within an acceptable range of precision. In other cases, more complex valuation methods are required to satisfy the measurement objective. For example, if cash flows reflect a series of interrelated (implicit or explicit) options and respond in a non-linear fashion to changes in economic conditions, then Aegon often uses stochastic modeling techniques to estimate the expected present value. Stochastic modeling involves projecting future cash flows under a large number of possible economic scenarios for market variables such as interest rates and equity returns. Other methods that are used to measure non-linear cash flows include closed-form solutions and replicating portfolio techniques.
\nWhen estimating future cash flows, Aegon sets actuarial assumptions for underwriting risk including policy claims (such as\u00a0mortality, longevity, or morbidity), policyholder behavior (such as lapses, surrender of policies or partial withdrawals), and property\u00a0& casualty loss ratios and expenses. Actuarial assumptions are reviewed annually, with the exception of expense assumptions, which might be updated more frequently as a result of the quarterly monitoring of actual expenses.
\nMortality tables are generally developed and\u00a0applied based on a blend of company experience and industry wide studies, taking into consideration product characteristics, own risk selection criteria, target market and past experience. Mortality experience is monitored through regular studies, the results of which are fed into the pricing cycle for new products and reflected in the liability calculation for in-force groups of contracts where appropriate. For contracts insuring survivorship or mortality, allowance is made for further longevity or mortality improvements. Morbidity assumptions are based on own claims severity and frequency experience, adjusted where appropriate for industry information. Industry surveys are used for judgment-based assumptions, such as morbidity improvement and cost of long-term care (LTC) inflation.
Surrender and lapse rates depend on product features, policy duration, and external circumstances such as the interest rate environment and competitor behavior. For policies where policyholders are expected to have a financial incentive to choose a\u00a0favorable lapse timing based on the market conditions, a dynamic lapse assumption is utilized to reflect expected policyholder behavior when applying multiple scenarios in measurement. Own experience, as well as industry-published data, is used to establish assumptions. Lapse experience is correlated to mortality and morbidity levels, as higher or lower levels of surrenders may indicate future claims will be higher or lower than anticipated. Such correlations are accounted for in\u00a0the mortality and morbidity assumptions based on the emerging analysis of experience.
Policyholder benefits that are directly linked to asset performance are projected at rates that are consistent with the discount rates applied. For cash flows like crediting rates, the projected cash flows reflect how the reporting unit would determine crediting rates in a given scenario based on the Group\u2019s crediting policies. Other management actions are taken into account to the extent that they are part of Aegon\u2019s regular policies and procedures.
Given that Aegon applies the premium allocation approach to most of its non-life insurance business, actuarial assumptions related to (ultimate) loss ratio assumptions only impact the fulfillment cash flows for onerous groups of contracts with remaining coverage and for contracts with incurred claims. Aegon uses a range of loss reserving techniques to estimate (ultimate) claims ratios, using historical claims development data as well as market observable inputs. Large-ticket reported claims are assessed on an individual basis.
\nExpenses that are attributable to the fulfillment cash flows include acquisition expenses, maintenance expenses, and claims settlement costs, as well as overhead costs that Aegon considers to be unavoidable when fulfilling the in-force contracts. Investment expenses are included in the fulfillment cash flows for contracts that provide investment-related or investment-return services, as well as for contracts where Aegon performs investment activities that enhance the policyholders\u2019 benefits from insurance coverage. Aegon\u2019s expense assumptions are based on the current level of expenses, adjusted for future expense inflation and the impact of known one-off projects (such as planned cost-saving initiatives or projects to implement additional regulatory reporting requirements). In not-at-scale units, further adjustment is made to reflect a long-term scale of business.
When allocating the attributable expenses to groups of contracts, Aegon leverages allocation approaches used for pricing or regulatory reporting. Where IFRS requires a greater level of granularity, additional allocation keys are applied that have been defined based on, for example, further expense studies. The expense inflation assumption is split into a financial component that is calibrated to market observables and a non-financial component that is set as an actuarial assumption. The non-financial component of the expense inflation assumption represents the estimated difference between general market inflation implied by the market and expense inflation that is specific to Aegon\u2019s product characteristics. Some inflation assumptions (such as LTC utilization and health medical inflation in the Americas) do not include a financial component but\u00a0are entirely set as an actuarial assumption, given that they are weakly correlated with general inflation indices and there\u00a0is no hedge market for such rates.
\nAegon adjusts the estimated future cash flows of a group of contracts to reflect the time value of money and the financial risks related to those cash flows, to the extent that the financial risks are not included in the estimates of cash flows. The\u00a0discount rates applied to the estimates of the future cash flows:
Reflect the time value of money, the characteristics of the cash flows and the liquidity characteristics of the insurance contracts;
Are consistent with observable current market prices (if any) for financial instruments with cash flows whose characteristics are consistent with those of the insurance contracts, in terms of, for example, timing, currency, and liquidity; and
Exclude the effect of factors that influence observable market prices but do not affect the future cash flows of the\u00a0insurance contracts.
No implicit adjustments for non-financial risks are included in the discount rates, as the risk adjustment for non-financial risks is\u00a0explicitly included in the fulfillment cash flows.
When determining the discount rates at the date of initial recognition of a group of contracts, Aegon uses weighted-average discount rates over the period that contracts in that group are issued.\u00a0
IFRS explicitly mentions two calibration options for the discount rate, namely the \"top-down approach\" and \"bottom-up\" approach. Aegon has generalized both approaches into a direct discounting technique in which discount rates are determined as the sum of the risk-free rate plus a percentage of the illiquidity premium (ILP). The ILP is an extra spread that an investor can\u00a0earn by investing in a security that offers limited or no ability for the investor to exit the investment prior to its maturity. If\u00a0an\u00a0insurance liability is illiquid (meaning that the policyholder has limited or no ability to cash it in prior to maturity or contingency-based payment), the liability is discounted at a rate that includes an ILP because illiquid assets (earning an illiquidity premium) may be purchased to back or replicate that liability.\u00a0
\nAegon has identified various rates available in the EUR, GBP and USD markets that can be used as a basis for the risk-free yield curve, including EURIBOR swap rates for EUR, reformed Sterling Overnight Index Average (SONIA) for GBP, and Secured Overnight Funding Rates (SOFR) and US Treasury rates for USD. EURIBOR rates are adjusted for credit risk by subtracting a credit risk allowance. No adjustment is made to overnight swap rates and US Treasury rates, as the credit risk of these instruments is deemed negligible.
A full risk-free yield curve is derived by first interpolating between tenors for which market data is available, and then extrapolating the yield curve beyond market observable maturities. Discount rates converge linearly in 10 years to an ultimate forward rate. A uniform last liquid point for EUR and USD is set at 30 years, GBP is set at 50 years. The ultimate forward rates reflect a long-term view on nominal interest rates and is set by management per currency, considering expected real interest rates and long-term inflation together with the current market environment. The ultimate forward rates have been reviewed as part of the annual Group economic assumptions update and revised to 3.40% effective December 31, 2024 (December 31, 2023: common level of 3.45%).
Aegon reviews the risk-free last liquid point and ultimate forward rates quarterly which, although expected to be infrequent, may lead to assumption updates if there are significant changes in market conditions.\u00a0
| \n \n Yield curves (zero coupon rates excluding ILP) December 31, 2024 | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n EUR | \n \n \n 2.24% | \n \n \n 2.15% | \n \n \n 2.27% | \n \n \n 2.33% | \n \n \n 2.26% | \n \n \n 2.00% | \n
| \n \n GBP | \n \n \n 4.46% | \n \n \n 4.04% | \n \n \n 4.07% | \n \n \n 4.23% | \n \n \n 4.30% | \n \n \n 4.23% | \n
| \n \n USD | \n \n \n 4.24% | \n \n \n 4.46% | \n \n \n 4.67% | \n \n \n 4.89% | \n \n \n 5.05% | \n \n \n 4.82% | \n
| \n \n Yield curves (zero coupon rates excluding ILP) December 31, 2023 | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n EUR | \n \n \n 3.36% | \n \n \n 2.33% | \n \n \n 2.39% | \n \n \n 2.47% | \n \n \n 2.40% | \n \n \n 2.18% | \n
| \n \n GBP | \n \n \n 4.74% | \n \n \n 3.35% | \n \n \n 3.28% | \n \n \n 3.40% | \n \n \n 3.43% | \n \n \n 3.35% | \n
| \n \n USD | \n \n \n 4.83% | \n \n \n 3.89% | \n \n \n 3.90% | \n \n \n 4.00% | \n \n \n 4.39% | \n \n \n 4.00% | \n
Aegon sets ILPs at the level of the reporting unit or major business unit, reflecting how it manages the investments and ALM risk for the given block of liabilities. For example, in the United States, Aegon has set ILPs by lines of business which has resulted in 11 ILP curves. For each unit, an ILP curve is constructed that is based on the market-observables returns on a reference portfolio of assets. The reference portfolio is based on the unit\u2019s actual holdings or investment policy target mix of fixed-interest securities\u00a0except for single premium products with the need to link returns to the actual asset mix, or products with needs of frequent hedging to cover guarantees where Aegon may choose to allow for short-term deviations from the target to \u00a0be included. The reference portfolio excludes alternative investments (such as equities and real estate investments).\u00a0
To derive the ILP curve for respective lines of business, market observable spreads are sourced and adjusted for expected and unexpected default losses. The ILP is based on the weighted average of these adjusted spreads using the line of business reference portfolio.\u00a0
The full ILP curve is derived by interpolating between the observable tenors and then extrapolating the yield linearly beyond the ILP last liquid point to the ultimate forward ILP. The last liquid point can be set separately for each duration bucket or, as\u00a0a\u00a0practical simplification, as a single point in time for the entire reference portfolio. The ultimate forward spread is set based on the historical 50th percentile spread adjusted for expected and unexpected default losses.
Aegon uses the expected default loss from historical default data plus an adjustment for default risk premium. The adjustment for the default risk premium or the unexpected default loss is calculated by applying 30% on top of the expected default, which is based on the management's judgment.
Aegon updates the reference portfolio quarterly, and the ILP last liquid point and ILP ultimate forward rate are revised accordingly. The most significant products of Aegon Ltd. are presented below. These ILP curves are added to the risk-free yields of the currency in which the cash flows of the products are denominated.
| \n \n ILP per portfolio, December 31, 2024 | \n \n \n Country | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n Fixed Deferred Annuity | \n \n \n US | \n \n \n 0.80% | \n \n \n 0.88% | \n \n \n 1.00% | \n \n \n 1.14% | \n \n \n 1.14% | \n \n \n 1.15% | \n
| \n \n Indexed Universal Life | \n \n \n US | \n \n \n 0.90% | \n \n \n 1.02% | \n \n \n 1.09% | \n \n \n 1.22% | \n \n \n 1.21% | \n \n \n 1.22% | \n
| \n \n Long-Term Care | \n \n \n US | \n \n \n 0.72% | \n \n \n 0.73% | \n \n \n 0.77% | \n \n \n 1.06% | \n \n \n 1.14% | \n \n \n 1.28% | \n
| \n \n Traditional Life | \n \n \n US | \n \n \n 0.75% | \n \n \n 0.77% | \n \n \n 0.80% | \n \n \n 1.09% | \n \n \n 1.15% | \n \n \n 1.26% | \n
| \n \n Universal Life | \n \n \n US | \n \n \n 0.76% | \n \n \n 0.79% | \n \n \n 0.81% | \n \n \n 1.05% | \n \n \n 1.11% | \n \n \n 1.24% | \n
| \n \n Variable Annuities | \n \n \n US | \n \n \n 0.55% | \n \n \n 0.63% | \n \n \n 0.64% | \n \n \n 0.65% | \n \n \n 0.64% | \n \n \n 0.66% | \n
| \n \n Annuities | \n \n \n UK | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.96% | \n
| \n \n Individual Protection | \n \n \n UK | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.45% | \n
| \n \n ILP per portfolio, December 31, 2023 | \n \n \n Country | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n Fixed Deferred Annuity | \n \n \n US | \n \n \n 1.15% | \n \n \n 1.21% | \n \n \n 1.12% | \n \n \n 1.11% | \n \n \n 1.11% | \n \n \n 1.11% | \n
| \n \n Indexed Universal Life | \n \n \n US | \n \n \n 1.20% | \n \n \n 1.24% | \n \n \n 1.20% | \n \n \n 1.18% | \n \n \n 1.18% | \n \n \n 1.21% | \n
| \n \n Long-Term Care | \n \n \n US | \n \n \n 0.97% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 1.15% | \n \n \n 1.20% | \n \n \n 1.30% | \n
| \n \n Traditional Life | \n \n \n US | \n \n \n 0.99% | \n \n \n 1.01% | \n \n \n 1.02% | \n \n \n 1.15% | \n \n \n 1.19% | \n \n \n 1.28% | \n
| \n \n Universal Life | \n \n \n US | \n \n \n 1.01% | \n \n \n 1.03% | \n \n \n 1.02% | \n \n \n 1.13% | \n \n \n 1.17% | \n \n \n 1.26% | \n
| \n \n Variable Annuities | \n \n \n US | \n \n \n 0.69% | \n \n \n 0.69% | \n \n \n 0.68% | \n \n \n 0.67% | \n \n \n 0.64% | \n \n \n 0.67% | \n
| \n \n Annuities | \n \n \n UK | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.76% | \n
| \n \n Individual Protection | \n \n \n UK | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.40% | \n
The illiquidity factor reflects the liquidity characteristics of a certain group of insurance contracts.\u00a0 Groups of contracts whose cash flows are not dependent on the underlying assets are assigned an illiquidity factor of 100%. Groups of contracts for which the cash flows predominantly vary with the underlying assets are assigned an illiquidity factor of 0%. For example, Aegon UK does not apply an illiquidity factor to the Unit Linked products. For a few products that include both types of cash flows, such as US variable annuity products with guaranteed minimum withdrawal benefits, a combination of 100% and 0% ILP is used.
\nInterest rate volatilities are modeled based on swaption prices, in line with current market pricing.
\nThe risk adjustment for non-financial risk is included explicitly as a separate component of the fulfillment cash flows. It reflects the compensation that Aegon requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as it fulfils insurance contracts.\u00a0
The non-financial risks considered include mortality, morbidity, policyholder behavior, expense, and product specific operational risk. Non-financial risks that do not arise from the insurance contracts, such as general operational risk, are\u00a0not\u00a0reflected in the risk adjustment. The risk adjustment reflects both the risk that actual experience differs from the best estimate assumption used to project future cash flows due to mis-estimation (parameter risk), as well as the risk of random fluctuations around the true estimates (contagion risk).\u00a0
Diversification benefits are recognized at the Group level. To align with market practice, Aegon only reflects the degree of diversification between non-financial risks, and contrary to its pricing methodology, ignores diversification benefits between financial and non-financial risks. Diversification effects include the impact of reinsurance ceded, as well as insurance contracts classified as held for sale.
Aegon generally applies a simplified confidence interval technique which estimates the risk adjustment for non-financial risk using a confidence level (probability of sufficiency) approach at the 80th percentile. Under this approach, a probability distribution is assumed for each particular risk and the amount above the expected present value of future cash flows determined (using a shock factor). The impacts for each risk are then aggregated using a correlation matrix, reflecting diversification between the various non-financial risk types. For some products, Aegon measures contagion risk using the\u00a0Conditional Tail Expectation technique at the 75th percentile. Regardless of the technique applied, the confidence interval is computed across the entire product lifetime in order to fully reflect the risk.\u00a0
\nActuarial assumptions are reviewed periodically in the second quarter for the United States and in the fourth quarter for Europe and Asia, based on historical experience, observable market data, including market transactions such as acquisitions and reinsurance transactions, anticipated trends, and legislative changes. Similarly, the models and systems used for determining our liabilities and reinsurance assets are reviewed periodically, and if deemed necessary, updated based on emerging best practice and available technology.\u00a0
During 2024, Aegon implemented actuarial assumption and model updates which are mainly related to Aegon\u2019s business in\u00a0the Americas.
Assumption updates (non-financial assumptions) are absorbed in the CSM where there are sufficient balances. The change in CSM will impact the amount amortized in the current period and all prospective periods. The total pre-tax impact of non-financial assumption changes at the end of 2024 is a EUR 489 million increase in liabilities. Most of the impact was related to updated mortality assumptions for Protection Solutions and Financial Assets lines of business, where the book has been experiencing volatile and unfavorable claims experience. As a result, the universal life and individual life products are now mainly onerous, however\u00a0there is a limited impact on total liabilities as it is offset by\u00a0the movements in CSM.
Aegon did not make any significant changes to the contract boundaries in the current reporting period, nor did it update the\u00a0approaches used to determine the discount rate or estimate the risk adjustment for non-financial risk.
\nIn addition to the judgments and estimates made in measuring the fulfillment cash flows that are described above, other\u00a0significant judgments are applied in determining:
The relative weighting of coverage units when multiple services are provided;
The non-distinct investment component, which is excluded from insurance revenue; and
The adjustment for nonperformance risk that is applied to reinsurance contracts held.
Often one single metric can be defined that captures multiple services provided under one contract. Different approaches are\u00a0used by Aegon when assessing the relative weighting of the benefits of different services. In some cases, the weighting is done in a way that directly flows from the composition of the benefits under the contract. For example, for a life insurance product with an account value that can be surrendered, coverage units can be based on the total death benefit as this amount comprises both the account value (investment service) and the excess death benefits (insurance service). In other cases, significant judgment is required. For example, for US long-term care insurance products, multiple drivers impact the maximum daily benefit to which a policyholder could be entitled. To reflect this, the coverage unit is computed using a combination of the\u00a0initial allowed benefit, the benefit period, as well as adjustments for any inflation protection and if the policy is paid-up on the\u00a0contingent non-forfeiture option.
\nAegon reports insurance revenue and insurance service expenses excluding non-distinct investment components. An\u00a0investment component is defined as the amount that an insurance contract requires Aegon to repay to a policyholder, even\u00a0if\u00a0the insured event does not occur.
Aegon determines the investment component when a claim is incurred as an amount is released from the liability for\u00a0remaining coverage. When doing so it considers which payments would have been possible immediately prior to the claims date. For example, a payment might have needed to be made to the policyholder in light of policy surrender, the uptake of a policy loan or the partial withdrawal, or the transfer of an insurance policy to another insurer. The investment component is defined net of any penalty or similar charges.
\nThe nonperformance risk by the reinsurer is based on Aegon\u2019s credit exposure, net of collateral, and the perceived counterparty default risk. In assessing the credit exposure, Aegon takes into account treaty provisions for non-performance, such as the automatic recapture of the reinsured business on default of the reinsurer.\u00a0
When estimating a reinsurer\u2019s default risk, Aegon considers the current financial condition and credit standing of the reinsurer, expert judgment specific to the local reinsurance market and historical data (such as Moody\u2019s loss given default rates). The\u00a0ultimate adjustment reflects the risk of potential reinsurance counterparty failure due to default (i.e. credit events), as\u00a0well\u00a0as disputes resulting in reduced payments and the potential for current conditions to change over time.
\nThe table below presents information about the\u00a0valuation techniques and significant unobservable inputs used for recurring fair value measurements for certain Level III financial instruments.
| \n | \n\n \n Valuation technique 1 | \n \n \n Significant unobservable input 2 | \n \n \n December 31, 2024 | \n \n \n \n \n Range (weighted average) \n | \n \n \n December 31, 2023 | \n \n \n \n \n Range (weighted average) \n | \n
| \n \n Assets carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value through OCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n Net asset value | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n - | \n \n | \n\n \n 4 | \n \n | \n
| \n \n Debt securities | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n Broker quote | \n \n \n n.a. | \n \n \n 688 | \n \n \n n.a. | \n \n \n 416 | \n \n \n n.a. | \n
| \n | \n\n \n Discounted cash flow | \n \n \n Constant Prepayment Rate | \n \n \n 28 | \n \n \n 21.11% | \n \n \n 2 | \n \n \n 1.81% | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n \n \n 98 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 799 | \n \n | \n\n \n 516 | \n \n | \n
| \n \n Other investments at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n \n Other | \n \n \n Other | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n 9 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n - | \n \n | \n\n \n 9 | \n \n | \n
| \n \n On December 31 | \n \n | \n\n | \n\n \n 799 | \n \n | \n\n \n 530 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n \n \n 91 | \n \n \n n.a. | \n
| \n \n Shares | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 3 | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 94 | \n \n \n n.a. | \n \n \n 80 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Other | \n \n \n n.a. | \n \n \n 13 | \n \n \n n.a. | \n \n \n 6 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 193 | \n \n | \n\n \n 180 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other investments at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 3,633 | \n \n | \n\n \n 3,532 | \n \n | \n
| \n \n Tax credit investments | \n \n \n Discounted cash flow | \n \n \n Discount rate | \n \n \n 823 | \n \n \n 6.72% | \n \n \n 705 | \n \n \n 6.88% | \n
| \n \n Loans | \n \n \n Other | \n \n \n n.a. | \n \n \n 82 | \n \n | \n\n \n - | \n \n | \n
| \n | \n\n | \n\n | \n\n \n 4,538 | \n \n | \n\n \n 4,237 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total assets at fair value 3 | \n \n | \n\n | \n\n \n 5,530 | \n \n | \n\n \n 4,947 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Embedded derivatives in insurance contracts | \n \n \n Discounted cash flow | \n \n \n Own credit spread | \n \n \n - | \n \n \n n.a | \n \n \n 3 | \n \n \n n.a | \n
| \n \n Other | \n \n \n Discounted cash flow | \n \n \n Other | \n \n \n - | \n \n \n n.a | \n \n \n 3 | \n \n \n n.a | \n
| \n \n Total liabilities at fair value | \n \n | \n\n | \n\n \n - | \n \n | \n\n \n 6 | \n \n | \n
For reference purposes, the valuation techniques included in the table above are described in more detail on the following pages.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5713m3778p": { "value": "\nThe consolidated financial statements of Aegon have been prepared assuming a going concern basis of accounting based on the reasonable assumption that the Company is, and will be, able to continue its normal course of business in the foreseeable future. Relevant facts and circumstances relating to the consolidated financial position on December 31, 2024, were assessed in order to reach the going concern assumption. The main areas assessed are financial performance, capital adequacy, financial position and flexibility, liquidity, ability to access capital markets, leverage ratios and the level of Cash Capital at Holding. For further details, see note 37 Capital management and solvency. Considering all these areas management concluded that the going concern assumption for Aegon is appropriate in preparing the consolidated financial statements and there is no significant doubt about going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1091m1066p": { "value": "\nNote 38 Fair value determines the fair value of financial instruments with significant unobservable inputs (i.e. level\u00a03 financial\u00a0assets).
The following is a description of Aegon\u2019s methods of determining fair value, and a quantification of its exposure to assets and\u00a0liabilities measured at fair value.
Fair value is defined as the amount that would be received from the sale of an asset or paid to transfer a liability in\u00a0an\u00a0orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:
In the principal market for the asset or liability; or\u00a0
In the absence of a principal market, in the most advantageous market for the asset or liability.
Aegon uses the following hierarchy for measuring and disclosing the fair value of assets and liabilities:
Level I: quoted prices (unadjusted) in active markets for identical assets or liabilities that Aegon can access at\u00a0the\u00a0measurement 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\u00a0valuation techniques for which any significant input is not based on observable market data.
The best evidence of fair value is a quoted price in an actively traded market. In the event that the market for a financial instrument is not active or quoted market prices are not available, a valuation technique is used.
The degree of judgment used in measuring the fair value of assets and liabilities generally inversely correlates with the level of observable valuation inputs. Aegon maximizes the use of observable inputs and minimizes the use of unobservable valuation inputs when measuring fair value. Financial instruments, for example, with quoted prices in active markets generally have more pricing observability, and therefore less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment.
The assets and liabilities categorization within the fair value hierarchy is based on the lowest input that is significant to the fair value measurement.
An active market is one in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The judgment as to whether a market is active may include, although not necessarily determinative, lower transaction volumes, reduced transaction sizes, and in some cases, no observable trading activity for short periods. In inactive markets, assurance is obtained that the transaction price provides evidence of fair value or it is determined that adjustments to transaction prices are necessary to measure the fair value of the instrument.
The majority of valuation techniques employ only observable market data, and so the reliability of the fair value measurement is high. However, certain assets and liabilities are valued on the basis of valuation techniques that feature one or more significant market inputs that are unobservable and, for such assets and liabilities, the derivation of fair value is more judgmental. An instrument is classified in its entirety as valued using significant unobservable inputs (level 3) if, in the opinion of management, a significant proportion of the instrument\u2019s carrying amount is driven by unobservable inputs. \"Unobservable\" in this context means that there is little or no current market data available from which to determine the price at which an at-arm\u2019s length transaction would be likely to occur. It generally does not mean that there is no market data available at all upon which to base a determination of fair value. Additional information is provided in the table headed Effect of changes in significant unobservable assumptions to reasonably possible alternatives in note 38 Fair Value. While Aegon believes its valuation techniques are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain instruments (both financial and non-financial) could result in a different estimate of fair value at the reporting date.
To operationalize Aegon\u2019s fair value hierarchy, individual instruments (both financial and non-financial) are assigned a fair value level based primarily on the type of instrument and the source of the prices (e.g., index, third-party pricing service, broker, internally modeled). Periodically, this logic for assigning fair value levels is reviewed to determine if any modifications are necessary in the context of the current market environment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1578m1067p": { "value": "\nInsurance risks are described in note 29.4 Underwriting risk for risk exposures arising from contracts within the scope of\u00a0IFRS\u00a017. Financial risks typically include, but are not limited to, credit risk,\u00a0market risk and\u00a0 liquidity risk.
As an insurance group, Aegon is exposed to a variety of risks. Aegon's largest exposures are to changes in financial markets (e.g. foreign currency, interest rate, credit and equity market risks) that affect the value of the investments, liabilities from products that Aegon sells. Other risks include insurance related risks, such as changes in mortality, morbidity, bond credit spread and liquidity premium, which are discussed in note 29 Insurance contracts. Aegon manages risk at local level where business is transacted, based on principles and policies established at the Group level. Aegon's integrated approach to risk\u00a0management involves similar measurement of risk and scope of risk coverage to allow for aggregation of the Group's risk\u00a0position.
To manage the risk from changes in financial markets, Aegon\u2019s products are priced using a market-consistent framework and\u00a0comprehensive asset liability management (ALM) programs are implemented to ensure that the assets backing policyholder benefits are invested prudently over the long term. A range of ALM techniques are used across the Group. These\u00a0range in terms of sophistication and complexity from cash-flow matching (for traditional fixed annuities) to duration matching (for the Universal Life range of products) to derivative-based semi-static and dynamic hedges (to match variable annuities and indexed universal life.).
To manage its risk exposure, Aegon has risk policies in place. Many of these policies are group-wide while others are specific to the unique situation of local businesses. For ALM specifically, the Enterprise Risk Management (ERM) framework includes several risk policies that govern ALM strategies, such as the Investment and Counterparty Risk Policy (ICRP). The ICRP governs the management of investment risks associated with credit, equity, property, alternative asset classes, interest rate and currency risk in addition to option markets, implied volatility risk, interest rate options and swaptions. As well as product-level ALM programs, subsidiary businesses are required by the ICRP to maintain overarching entity-level ALM strategies that set the direction and limits for the aggregated product-level programs. Significant or complex ALM strategies are approved at\u00a0group level, and all programs are subject to Group Risk oversight.
Together with the ICRP, which guides ALM strategy, several other ERM policies govern concentration risk, liquidity risk, use\u00a0of\u00a0derivatives and securities lending and repos. As Aegon uses derivatives extensively, collateral calls can be significant depending on market circumstances. Liquidity is managed at legal entity level in the first instance with central coordination by\u00a0Aegon\u00a0Ltd. Aegon US may use external market solutions to match projected liquidity requirements with funding.
Next to guidance, the Group level policies also provide limits to Aegon's exposure to major risks such as equity, interest rates, credit, and currency. The limits in these policies in aggregate remain within Aegon's overall tolerance for risk and the Group's financial resources. Operating within this policy framework, Aegon employs risk management programs including ALM processes and models and hedging programs (which are largely conducted via the use of financial derivative instruments). These risk management programs are in place in each country unit and are not only used to manage risk in each unit but are also part of the Aegon's overall risk strategy.
Aegon operates a Derivative Use Policy to govern its use of derivatives. This policy establishes the control, authorization, execution and monitoring requirements of the usage of such instruments. In addition, the policy stipulates necessary mitigation of credit risk created through derivatives management tools. For derivatives, counterparty credit risk is normally mitigated by requirements to post collateral via credit support annex agreements or through a central clearing house.
As part of its risk management programs, Aegon takes inventory of its current risk position across risk categories. Aegon\u00a0also\u00a0measures the sensitivity of net result and shareholders' equity under both deterministic and stochastic scenarios. Management uses the insight gained through these \"what if?\" scenarios to manage the Group's risk exposure and capital position. The models, scenarios and assumptions used are reviewed regularly and updated as necessary.
Results of Aegon's sensitivity analyses are presented throughout this section to show the estimated sensitivity of CSM, net\u00a0result and shareholders' equity to various scenarios. For each type of market risk, the analysis shows how net result and shareholders' equity would have been affected by changes in the relevant risk variable.\u00a0In case of insurance contracts, changes in assumptions could have immediate impact on net result, OCI and on CSM, depending on the measurement model. For each sensitivity test, the impact of a reasonably possible change in a single factor is shown. Management action is taken into account to the extent that it is part of Aegon's regular policies and procedures, such as established hedging programs. However, incidental management actions that would require a change in policies and procedures are not considered.
Each sensitivity analysis reflects the extent to which the shock tested would affect management's critical accounting estimates and judgment in applying Aegon's accounting policies. Market-consistent assumptions underlying the measurement of non-listed assets and liabilities are adjusted to reflect the shock tested. The shock may also affect the measurement of assets and liabilities based on assumptions that are not observable in the market. For example, a shock in interest rates may lead to increased expected credit losses on debt investments. Although management's short-term assumptions may change if there is a reasonably possible change in a risk factor, long-term assumptions will generally not be revised unless there is evidence that the movement is permanent. This fact is reflected in the sensitivity analyses.
The sensitivities do not reflect what the net result for the period would have been if risk variables had been different because the analysis is based on the exposures in existence at the reporting date rather than on those that actually occurred during the year. Nor are the results of the sensitivities intended to be an accurate prediction of Aegon's future shareholders' equity or\u00a0earnings. The analysis does not take into account the impact of future new business, which is an important component of Aegon's future earnings. It also does not consider all methods available to management to respond to changes in the financial environment, such as changing investment portfolio allocations or adjusting premiums and crediting rates. Furthermore, the\u00a0results of the analyses cannot be extrapolated or interpolated for wider variations since effects do not tend to be\u00a0linear.
Concentration risk for financial risks is measured and managed at the following levels:
Concentration per risk type: Risk exposures are measured per risk type as part of Aegon\u2019s internal economic framework. A\u00a0risk 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\u00a0the\u00a0Counterparty Name Limit Policy; and
Concentration per sector, geography and asset class: Aegon\u2019s 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.
Moreover, the concentration of financial risks is measured in Aegon's business planning cycle. As part of business planning, the\u00a0resilience of Aegon's business strategy is tested in several extreme event scenarios. In the Adverse Financial scenario, financial markets are stressed without assuming diversification across different market factors. Within the projection certain management actions may be implemented when management deems this necessary.
Aegon's significant financial risks and related financial information are explained in the order as follows:
Credit risk (note 4.2 Credit risk)
Market risk (note 4.3 Market risk)
\nEquity market risk and other investment risks \t\t
Interest rate risk \t\t
Currency exchange risk \t \t
Liquidity risk (note 4.4 Liquidity risk)
Certain information in this note is presented per segment, please see note 5 Segment information for the definition of\u00a0Aegon's\u00a0segments.
\nCredit risk is the risk of financial loss to Aegon if a counterparty to a reinsurance contract or financial instrument fails to meet its contractual obligations; the risk of economic loss due to the deterioration in the financial condition of counterparties, either through fair value losses on traded securities or through defaults on traded securities, loans and mortgages.
Aegon implemented policies and procedures to govern credit limits and processes to manage credit risk, concentration risk and counterparty risk with regards to all the Group\u2019s material businesses with credit exposures in scope, including bonds, loans, cash and equivalents, collateralized assets, reinsurance assets, and assets measured at fair value. The Group uses risk gradings aligned with the major credit rating agencies, and in the case of specific asset portfolios such as residential mortgage loans implements internal risk gradings that reflect its assessment of the probability of default of individual counterparties.\u00a0
The credit grades are calibrated such that the risk of default increases exponentially with each increase in risk grade. For\u00a0example, this means that the difference in the probability of default (PD) between the AAA and A rating grades is lower than the difference in the PD between the BBB and B rating grade.\u00a0
\nAs premiums and deposits are received, these funds are invested to pay for future policyholder obligations. For assets backing insurance liabilities measured under the general model and the premium allocated approach, as well as other \"free\" assets, Aegon typically bears the risk for investment performance which is equal to the return of principal and interest.
Aegon\u00a0is exposed to credit risk on its fixed-income portfolio (debt securities, mortgages and private placements), over-the-counter derivatives and reinsurance contracts. Some issuers have defaulted on their financial obligations for various reasons, including bankruptcy, lack of liquidity, downturns in the economy, downturns in real estate values, operational failure and fraud. During financial downturns, Aegon can incur defaults or other reductions in the value of these securities and loans, which could have a materially adverse effect on Aegon\u2019s business, results of operations and financial condition.
The estimates of best estimate liability for (re)insurance contracts assets represent Aegon\u2019s maximum exposure to credit risk from these assets. Please see the cash flow information in note 29\u00a0Insurance contracts and reinsurance contracts held.
The following table contains an analysis of Aegon\u2019s maximum credit risk exposure from financial assets.
Please\u00a0see\u00a0note\u00a039 Commitments and contingencies\u00a0and 40 Transfers of financial assets for further information on capital commitments and contingencies and on collateral given, which may expose the Group to credit risk.
| \n \n 2024 | \n \n \n Maximum exposure to credit risk | \n \n \n Cash | \n \n \n Securities | \n \n \n Letters of credit / guaran- | \n \n \n Real estate property | \n \n \n Master netting agree- | \n \n \n Other | \n \n \n Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 60,890 | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n - | \n \n \n 60,829 | \n
| \n \n Money market and other short-term investments | \n \n \n 6,071 | \n \n \n - | \n \n \n 324 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 324 | \n \n \n 20 | \n \n \n 5,767 | \n
| \n \n Loans | \n \n \n 10,798 | \n \n \n 51 | \n \n \n - | \n \n \n 20 | \n \n \n 23,694 | \n \n \n - | \n \n \n - | \n \n \n 23,766 | \n \n \n 12,982 | \n \n \n 14 | \n
| \n \n Unconsolidated investment funds | \n \n \n 192,775 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 192,775 | \n
| \n \n Deposits with financial institutes | \n \n \n 2,063 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,063 | \n
| \n \n Other investments | \n \n \n 5,207 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,207 | \n
| \n \n Derivative assets | \n \n \n 771 | \n \n \n 220 | \n \n \n 713 | \n \n \n - | \n \n \n - | \n \n \n 171 | \n \n \n - | \n \n \n 1,104 | \n \n \n 461 | \n \n \n 128 | \n
| \n \n Reinsurance assets | \n \n \n 16,021 | \n \n \n - | \n \n \n 14,141 | \n \n \n 732 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 14,872 | \n \n \n - | \n \n \n 1,149 | \n
| \n \n On December 31 | \n \n \n 294,597 | \n \n \n 271 | \n \n \n 15,177 | \n \n \n 813 | \n \n \n 23,694 | \n \n \n 171 | \n \n \n - | \n \n \n 40,127 | \n \n \n 13,462 | \n \n \n 267,932 | \n
| \n \n 2023 | \n \n \n Maximum exposure to credit risk | \n \n \n Cash | \n \n \n Securities | \n \n \n Letters of credit / guaran- | \n \n \n Real estate property | \n \n \n Master netting agree- | \n \n \n Other | \n \n \n Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 55,811 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n 55,718 | \n
| \n \n Money market and other short-term investments | \n \n \n 8,695 | \n \n \n - | \n \n \n 442 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 442 | \n \n \n 24 | \n \n \n 8,277 | \n
| \n \n Loans | \n \n \n 10,183 | \n \n \n 31 | \n \n \n - | \n \n \n 20 | \n \n \n 23,711 | \n \n \n - | \n \n \n - | \n \n \n 23,762 | \n \n \n 13,579 | \n \n \n - | \n
| \n \n Unconsolidated investment funds | \n \n \n 167,411 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 167,411 | \n
| \n \n Deposits with financial institutes | \n \n \n 2,289 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,289 | \n
| \n \n Other investments | \n \n \n 5,040 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,040 | \n
| \n \n Derivative assets | \n \n \n 1,429 | \n \n \n 832 | \n \n \n 669 | \n \n \n - | \n \n \n - | \n \n \n 373 | \n \n \n - | \n \n \n 1,875 | \n \n \n 550 | \n \n \n 104 | \n
| \n \n Reinsurance assets | \n \n \n 16,608 | \n \n \n - | \n \n \n 13,416 | \n \n \n 82 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 13,498 | \n \n \n - | \n \n \n 3,110 | \n
| \n \n On December 31 | \n \n \n 267,465 | \n \n \n 864 | \n \n \n 14,528 | \n \n \n 194 | \n \n \n 23,711 | \n \n \n 373 | \n \n \n - | \n \n \n 39,669 | \n \n \n 14,153 | \n \n \n 241,949 | \n
Several bonds in Aegon's Americas' portfolio are guaranteed by monoline insurance companies. This is shown in the table above in\u00a0the column Letters of credit / guarantees.
\nThe collateral reported for the money market and short-term investments are related to tri-party repurchase agreements (repos). Within tri-party repos, Aegon invests under short-term reverse repurchase agreements and the counterparty posts collateral to a third party custodian. The collateral posted is typically high-quality, short-term securities and is only accessible for or available to Aegon in the event the counterparty defaults.
The following table contains an analysis of Aegon\u2019s credit risk exposure for debt instruments for which an ECL allowance is\u00a0recognized. See note 4.2.6 Expected credit loss for a more detailed description of ECL measurement. All asset categories not presented here are\u00a0determined to have non-material credit risk or to be of short-term nature (cash and cash equivalents, other receivables). The\u00a0gross carrying amount of financial assets below also represents Aegon\u2019s maximum exposure to credit risk on these assets.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n\n \n ECL staging | \n \n | \n\n | \n||||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Financial assets | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n AAA | \n \n \n 3,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,295 | \n \n \n 2,961 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,961 | \n
| \n \n AA | \n \n \n 9,100 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 9,101 | \n \n \n 9,217 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 9,219 | \n
| \n \n A | \n \n \n 19,443 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19,443 | \n \n \n 18,410 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 18,411 | \n
| \n \n BBB | \n \n \n 20,724 | \n \n \n 7 | \n \n \n - | \n \n \n 1 | \n \n \n 20,732 | \n \n \n 17,534 | \n \n \n 11 | \n \n \n - | \n \n \n 1 | \n \n \n 17,547 | \n
| \n \n BB | \n \n \n 949 | \n \n \n 157 | \n \n \n - | \n \n \n - | \n \n \n 1,106 | \n \n \n 899 | \n \n \n 136 | \n \n \n - | \n \n \n - | \n \n \n 1,035 | \n
| \n \n B | \n \n \n 361 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 456 | \n \n \n 431 | \n \n \n 120 | \n \n \n 3 | \n \n \n - | \n \n \n 554 | \n
| \n \n CCC and lower | \n \n \n 85 | \n \n \n 79 | \n \n \n 289 | \n \n \n 91 | \n \n \n 544 | \n \n \n 120 | \n \n \n 91 | \n \n \n 319 | \n \n \n 99 | \n \n \n 629 | \n
| \n \n Net carrying amount | \n \n \n 53,957 | \n \n \n 337 | \n \n \n 291 | \n \n \n 92 | \n \n \n 54,677 | \n \n \n 49,571 | \n \n \n 358 | \n \n \n 325 | \n \n \n 100 | \n \n \n 50,354 | \n
| \n \n Expected credit loss | \n \n \n \n \n (187) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
The real estate collateral for mortgages includes both residential and commercial properties. The collateral for commercial mortgage loans in Aegon Americas is measured at fair value. At a minimum on an annual basis, a fair value is estimated for each individual real estate property that has been pledged as collateral. When a loan is originally provided, an external appraisal is obtained to estimate the value of the property. In subsequent years, the value is typically estimated internally using various professionally accepted valuation methodologies. Internal appraisals are performed by qualified, professionally accredited personnel. International valuation standards are used, and the most significant assumptions made during the valuation of real estate are the current cost of reproducing or replacing the property, the value that the property's net earning power will support, and the value indicated by recent sales of comparable properties. Valuations are primarily supported by market evidence.\u00a0
Cash collateral for mortgage loans includes the savings that have been received to redeem the underlying mortgage loans at\u00a0redemption date. These savings are part of the credit side of the statement of financial position but reduce the credit risk for\u00a0the mortgage loan as a whole.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n\n \n ECL staging | \n \n | \n\n | \n||||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans at | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Internal grade 1 | \n \n \n 977 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 1,013 | \n \n \n 947 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 947 | \n
| \n \n Internal grade 2 | \n \n \n 4,410 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n \n \n 3,929 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 3,930 | \n
| \n \n Internal grade 3 | \n \n \n 4,539 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 4,546 | \n \n \n 4,460 | \n \n \n 24 | \n \n \n - | \n \n \n - | \n \n \n 4,485 | \n
| \n \n Internal grade 4 | \n \n \n 644 | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 654 | \n \n \n 778 | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 785 | \n
| \n \n Internal grade 5 | \n \n \n 4 | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 81 | \n \n \n 33 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 35 | \n
| \n \n Internal grade 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Internal grade 7 or lower | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Gross carrying amount | \n \n \n 10,573 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,183 | \n
| \n \n Expected credit loss | \n \n \n \n \n (38) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n \n \n (24) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Total | \n \n \n 10,535 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n \n \n 10,123 | \n \n \n 33 | \n \n \n - | \n \n \n - | \n \n \n 10,156 | \n
As significant portion of instruments have been designated as FVPL. On December 31, 2024, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 1,488 million (December 2023: EUR\u00a01,736 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following changes in fair value have been recognized for these investments:
| \n | \n\n \n 2024 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \n
| \n | \n\n \n 2023 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 46 | \n \n \n \n \n (1) \n | \n \n \n 45 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n 20 | \n \n \n - | \n \n \n 20 | \n
The change in fair value attributable to changes in credit risk is determined as the total amount of the change in fair value that is not attributable to changes in the observable benchmark interest rate or in other market rates. This approach provides a\u00a0reasonable approximation of changes attributable to credit risk because fixed income securities valuation is mainly driven by two factors \u2013 interest rates and credit spreads, and the fair value change due to credit risk can therefore be estimated by removing impacts from non-credit related factors.
\nThe master netting agreements column in the table relates to derivative liability positions that are used in Aegon's credit risk management. The offset in the master netting agreements column includes balances where there is a legally enforceable right of offset, but no intention to settle these balances on a net basis under normal circumstances. As a result, there is a net exposure for credit risk management purposes. However, as there is no intention to settle these balances on a net basis, they\u00a0do not qualify for net presentation for accounting purposes.
\nThe collateral related to the reinsurance assets includes assets in trust that are held by the reinsurer for the benefit of Aegon. The assets in trust can be accessed to pay policyholder benefits in the event the reinsurers fail to perform under the terms of their contract. Further information on the related reinsurance transactions is included in note 29 Insurance contracts.
\nAegon employs a range of policies and practices to mitigate credit risk and the most common of these is accepting collateral\u00a0for funds advanced. The Group has internal policies on the acceptability of specific classes of collateral or credit\u00a0risk mitigation.\u00a0
\nOn December 31, 2024, the Group held no collateral that was obtained during the year (EUR 0 in 2023) by taking\u00a0possession of collateral held as security against receivables. The Group\u2019s policy is to pursue the timely realization of\u00a0the collateral in an orderly manner. Aegon does not generally use the non-cash collateral for its own operations.
\nAegon manages credit risk exposure by individual counterparty, sector and asset class, including cash positions. Normally,\u00a0Aegon mitigates credit risk in derivative contracts by entering into credit support agreement, where practical, and in ISDA master netting agreements for most of Aegon's legal entities to facilitate Aegon's right to offset credit risk exposure.
The main counterparties to these transactions are investment banks which are typically rated \"A\" or higher. The credit support agreement will normally dictate the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of derivative trades, comprised mostly of interest rate swaps, equity swaps, currency swaps and credit swaps. Collateral received is mainly cash (USD\u00a0and EUR). The credit support agreements that outline the acceptable collateral require high-quality instruments to be posted. Over\u00a0the last three years, there was no default with any derivatives counterparty. The credit risk associated with financial assets subject to a master netting agreement is eliminated only to the extent that financial liabilities due to the same counterparty will be settled after the assets are realized. Eligible derivative transactions are traded via Central Clearing Houses as required by EMIR and the Dodd-Frank act. Credit risk in these transactions is mitigated through posting of initial and\u00a0variation margins.
Aegon may also mitigate credit risk in reinsurance contracts by including downgrade clauses that allow the recapture of business, retaining ownership of assets required to support liabilities ceded or by requiring the reinsurer to hold assets in\u00a0trust. For the resulting net credit risk exposure, Aegon employs deterministic and stochastic credit risk modeling in order to\u00a0assess the Group's credit risk profile, associated earnings and capital implications due to various credit loss scenarios.
Aegon operates a Credit Name Limit Policy (CNLP) under which limits are placed on the aggregate exposure that it has to any one counterparty. Limits are placed on the exposure at both group level and individual country units. The limits also vary by a\u00a0rating system, which is a composite of the main rating agencies (S&P, Moody's and Fitch) and Aegon's internal rating of the\u00a0counterparty. If an exposure exceeds the stated limit, then the exposure must be reduced to the limit for the country unit and rating category as soon as possible. Exceptions to these limits can only be made after explicit approval from Aegon's\u00a0Group Risk and Capital Committee (GRCC). The policy is reviewed regularly.
The Group offers products that cover inflation risk for policyholders. To hedge the inflation risk, the Group invests in financial instruments of which the value depends on the rate of inflation. This significantly reduces the net exposure to inflation risk.
\nAegon group level long-term counterparty exposure limits are as follows:
\n| \n \n Amounts in EUR million | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n AAA | \n \n \n 900 | \n \n \n 900 | \n
| \n \n AA | \n \n \n 900 | \n \n \n 900 | \n
| \n \n A | \n \n \n 675 | \n \n \n 675 | \n
| \n \n BBB | \n \n \n 450 | \n \n \n 450 | \n
| \n \n BB | \n \n \n 250 | \n \n \n 250 | \n
| \n \n B | \n \n \n 125 | \n \n \n 125 | \n
| \n \n CCC or lower | \n \n \n 50 | \n \n \n 50 | \n
The ratings distribution of general account portfolios of Aegon's major reporting units, excluding reinsurance assets, are\u00a0presented in the table that follows, organized by rating category and split by assets that are valued at fair value and\u00a0assets that\u00a0are valued at amortized cost. Aegon uses a composite rating based on a combination of the external ratings of S&P, Moody's,\u00a0Fitch, the National Association of Insurance Commissioners (NAIC; for the United States only), and internal ratings. The\u00a0rating used\u00a0is the lower of the external rating and the internal rating.
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 1 | \n ||||||
| \n \n Financial | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Total carrying value | \n
| \n \n AAA | \n \n \n 1,013 | \n \n \n 5,265 | \n \n \n - | \n \n \n 25 | \n \n \n - | \n \n \n 37 | \n \n \n - | \n \n \n 73 | \n \n \n 1,013 | \n \n \n 5,400 | \n \n \n 6,412 | \n
| \n \n AA | \n \n \n 4,421 | \n \n \n 9,114 | \n \n \n - | \n \n \n 525 | \n \n \n - | \n \n \n 167 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n \n \n 9,805 | \n \n \n 14,226 | \n
| \n \n A | \n \n \n 4,546 | \n \n \n 19,771 | \n \n \n - | \n \n \n 220 | \n \n \n 1 | \n \n \n 684 | \n \n \n 24 | \n \n \n - | \n \n \n 4,571 | \n \n \n 20,674 | \n \n \n 25,245 | \n
| \n \n BBB | \n \n \n 654 | \n \n \n 20,895 | \n \n \n - | \n \n \n 59 | \n \n \n - | \n \n \n 451 | \n \n \n 3 | \n \n \n - | \n \n \n 668 | \n \n \n 21,405 | \n \n \n 22,073 | \n
| \n \n BB | \n \n \n 4 | \n \n \n 1,162 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 42 | \n \n \n 1 | \n \n \n - | \n \n \n 4 | \n \n \n 1,205 | \n \n \n 1,209 | \n
| \n \n B | \n \n \n 78 | \n \n \n 487 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n 78 | \n \n \n 492 | \n \n \n 570 | \n
| \n \n CCC or lower | \n \n \n - | \n \n \n 720 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n 8 | \n \n \n - | \n \n \n 8 | \n \n \n 726 | \n \n \n 733 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 4,844 | \n \n \n - | \n \n \n 740 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 54 | \n \n \n - | \n \n \n 5,668 | \n \n \n 5,668 | \n
| \n \n Total | \n \n \n 10,715 | \n \n \n 62,258 | \n \n \n - | \n \n \n 1,569 | \n \n \n 1 | \n \n \n 1,395 | \n \n \n 36 | \n \n \n 126 | \n \n \n 10,763 | \n \n \n 65,375 | \n \n \n 76,138 | \n
| \n \n ECL on financial assets | \n \n \n \n \n (118) \n | \n \n \n \n \n (327) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n \n \n (341) \n | \n \n \n \n \n (459) \n | \n
| \n \n On December 31, 2024 | \n \n \n 10,597 | \n \n \n 62,258 | \n \n \n - | \n \n \n 1,569 | \n \n \n 1 | \n \n \n 1,395 | \n \n \n 36 | \n \n \n 126 | \n \n \n 10,645 | \n \n \n 65,375 | \n \n \n 76,020 | \n
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 1 | \n ||||||
| \n \n Financial | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Total carrying value | \n
| \n \n AAA | \n \n \n 947 | \n \n \n 6,836 | \n \n \n - | \n \n \n 38 | \n \n \n - | \n \n \n 35 | \n \n \n 52 | \n \n \n 123 | \n \n \n 998 | \n \n \n 7,033 | \n \n \n 8,031 | \n
| \n \n AA | \n \n \n 3,930 | \n \n \n 9,191 | \n \n \n - | \n \n \n 514 | \n \n \n - | \n \n \n 161 | \n \n \n - | \n \n \n - | \n \n \n 3,930 | \n \n \n 9,866 | \n \n \n 13,796 | \n
| \n \n A | \n \n \n 4,485 | \n \n \n 19,474 | \n \n \n - | \n \n \n 220 | \n \n \n 1 | \n \n \n 791 | \n \n \n - | \n \n \n - | \n \n \n 4,486 | \n \n \n 20,486 | \n \n \n 24,972 | \n
| \n \n BBB | \n \n \n 785 | \n \n \n 17,679 | \n \n \n - | \n \n \n 124 | \n \n \n - | \n \n \n 466 | \n \n \n - | \n \n \n - | \n \n \n 803 | \n \n \n 18,269 | \n \n \n 19,072 | \n
| \n \n BB | \n \n \n 33 | \n \n \n 1,084 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 41 | \n \n \n - | \n \n \n - | \n \n \n 33 | \n \n \n 1,126 | \n \n \n 1,160 | \n
| \n \n B | \n \n \n 2 | \n \n \n 570 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n 579 | \n \n \n 581 | \n
| \n \n CCC or lower | \n \n \n - | \n \n \n 986 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 992 | \n \n \n 992 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 4,444 | \n \n \n - | \n \n \n 797 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 5,286 | \n \n \n 5,286 | \n
| \n \n Total | \n \n \n 10,182 | \n \n \n 60,264 | \n \n \n - | \n \n \n 1,695 | \n \n \n 1 | \n \n \n 1,514 | \n \n \n 52 | \n \n \n 124 | \n \n \n 10,253 | \n \n \n 63,638 | \n \n \n 73,891 | \n
| \n \n ECL on financial assets | \n \n \n \n \n (26) \n | \n \n \n \n \n (228) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n \n \n \n \n (238) \n | \n \n \n \n \n (263) \n | \n
| \n \n On December 31, 2023 | \n \n \n 10,156 | \n \n \n 60,264 | \n \n \n - | \n \n \n 1,695 | \n \n \n 1 | \n \n \n 1,514 | \n \n \n 52 | \n \n \n 124 | \n \n \n 10,227 | \n \n \n 63,638 | \n \n \n 73,865 | \n
The following table shows the credit quality of the reinsurance contracts included in the statement of financial position:
| \n \n Carrying value | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n AAA | \n \n \n - | \n \n \n - | \n
| \n \n AA | \n \n \n 1,087 | \n \n \n 1,245 | \n
| \n \n A | \n \n \n 14,041 | \n \n \n 14,089 | \n
| \n \n Below A | \n \n \n 3 | \n \n \n 4 | \n
| \n \n Not rated | \n \n \n 587 | \n \n \n 662 | \n
| \n \n On December 31 | \n \n \n 15,719 | \n \n \n 16,000 | \n
The tables that follow present specific credit risk concentration information for general account financial assets.
| \n \n Credit risk concentrations \u2013 debt securities | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 1 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n \n \n Residential mortgage-backed securities (RMBSs) \n | \n \n \n 684 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 684 | \n \n \n \n \n (19) \n | \n
| \n \n \n \n Commercial mortgage-backed securities (CMBSs) \n | \n \n \n 2,469 | \n \n \n 65 | \n \n \n 47 | \n \n \n - | \n \n \n 2,582 | \n \n \n \n \n (22) \n | \n
| \n \n Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | \n \n \n 582 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 585 | \n \n \n - | \n
| \n \n ABSs \u2013 Other | \n \n \n 4,761 | \n \n \n 54 | \n \n \n 49 | \n \n \n 88 | \n \n \n 4,952 | \n \n \n \n \n (16) \n | \n
| \n \n Financial - Banking | \n \n \n 3,751 | \n \n \n 172 | \n \n \n 178 | \n \n \n - | \n \n \n 4,101 | \n \n \n \n \n (19) \n | \n
| \n \n Financial - Other | \n \n \n 10,464 | \n \n \n 24 | \n \n \n 224 | \n \n \n 46 | \n \n \n 10,758 | \n \n \n \n \n (57) \n | \n
| \n \n Capital goods and other industry | \n \n \n 3,639 | \n \n \n 24 | \n \n \n 79 | \n \n \n - | \n \n \n 3,742 | \n \n \n \n \n (31) \n | \n
| \n \n Communications & Technology | \n \n \n 4,642 | \n \n \n 4 | \n \n \n 112 | \n \n \n - | \n \n \n 4,758 | \n \n \n \n \n (58) \n | \n
| \n \n Consumer cyclical | \n \n \n 3,641 | \n \n \n 25 | \n \n \n 91 | \n \n \n - | \n \n \n 3,757 | \n \n \n \n \n (39) \n | \n
| \n \n Consumer non-cyclical | \n \n \n 5,987 | \n \n \n 49 | \n \n \n 116 | \n \n \n - | \n \n \n 6,151 | \n \n \n \n \n (31) \n | \n
| \n \n Energy | \n \n \n 2,766 | \n \n \n 27 | \n \n \n 51 | \n \n \n - | \n \n \n 2,844 | \n \n \n \n \n (13) \n | \n
| \n \n Transportation | \n \n \n 1,786 | \n \n \n - | \n \n \n 29 | \n \n \n - | \n \n \n 1,816 | \n \n \n \n \n (6) \n | \n
| \n \n Utility | \n \n \n 4,763 | \n \n \n 16 | \n \n \n 54 | \n \n \n - | \n \n \n 4,833 | \n \n \n \n \n (12) \n | \n
| \n \n Government bonds | \n \n \n 6,926 | \n \n \n 370 | \n \n \n 286 | \n \n \n 18 | \n \n \n 7,601 | \n \n \n \n \n (18) \n | \n
| \n \n On December 31, 2024 | \n \n \n 56,861 | \n \n \n 830 | \n \n \n 1,320 | \n \n \n 152 | \n \n \n 59,162 | \n \n \n \n \n (341) \n | \n
| \n \n Credit risk concentrations \u2013 debt securities | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 1 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n \n \n Residential mortgage-backed securities (RMBSs) \n | \n \n \n 933 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 933 | \n \n \n \n \n (13) \n | \n
| \n \n \n \n Commercial mortgage-backed securities (CMBSs) \n | \n \n \n 2,216 | \n \n \n 73 | \n \n \n 34 | \n \n \n - | \n \n \n 2,323 | \n \n \n \n \n (17) \n | \n
| \n \n Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | \n \n \n 557 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 560 | \n \n \n - | \n
| \n \n ABSs \u2013 Other | \n \n \n 2,905 | \n \n \n 53 | \n \n \n 28 | \n \n \n 52 | \n \n \n 3,037 | \n \n \n \n \n (9) \n | \n
| \n \n Financial - Banking | \n \n \n 3,412 | \n \n \n 173 | \n \n \n 201 | \n \n \n - | \n \n \n 3,786 | \n \n \n \n \n (14) \n | \n
| \n \n Financial - Other | \n \n \n 11,909 | \n \n \n 38 | \n \n \n 289 | \n \n \n 97 | \n \n \n 12,332 | \n \n \n \n \n (33) \n | \n
| \n \n Capital goods and other industry | \n \n \n 3,443 | \n \n \n 24 | \n \n \n 143 | \n \n \n - | \n \n \n 3,609 | \n \n \n \n \n (23) \n | \n
| \n \n Communications & Technology | \n \n \n 4,242 | \n \n \n 2 | \n \n \n 140 | \n \n \n - | \n \n \n 4,384 | \n \n \n \n \n (30) \n | \n
| \n \n Consumer cyclical | \n \n \n 3,197 | \n \n \n 29 | \n \n \n 85 | \n \n \n - | \n \n \n 3,311 | \n \n \n \n \n (20) \n | \n
| \n \n Consumer non-cyclical | \n \n \n 5,661 | \n \n \n 74 | \n \n \n 111 | \n \n \n - | \n \n \n 5,846 | \n \n \n \n \n (24) \n | \n
| \n \n Energy | \n \n \n 2,821 | \n \n \n 20 | \n \n \n 55 | \n \n \n - | \n \n \n 2,896 | \n \n \n \n \n (19) \n | \n
| \n \n Transportation | \n \n \n 1,633 | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 1,663 | \n \n \n \n \n (6) \n | \n
| \n \n Utility | \n \n \n 4,190 | \n \n \n 73 | \n \n \n 75 | \n \n \n - | \n \n \n 4,338 | \n \n \n \n \n (10) \n | \n
| \n \n Government bonds | \n \n \n 7,349 | \n \n \n 338 | \n \n \n 265 | \n \n \n 17 | \n \n \n 7,969 | \n \n \n \n \n (20) \n | \n
| \n \n On December 31, 2023 | \n \n \n 54,467 | \n \n \n 898 | \n \n \n 1,458 | \n \n \n 166 | \n \n \n 56,988 | \n \n \n \n \n (237) \n | \n
| \n \n Credit risk concentrations \u2013 Government bonds per country of risk | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n
| \n \n United States | \n \n \n 6,095 | \n \n \n - | \n \n \n 69 | \n \n \n - | \n \n \n 6,164 | \n
| \n \n Netherlands | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n \n United Kingdom | \n \n \n - | \n \n \n 316 | \n \n \n - | \n \n \n 18 | \n \n \n 334 | \n
| \n \n Austria | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n 10 | \n
| \n \n Belgium | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n \n France | \n \n \n - | \n \n \n 28 | \n \n \n 8 | \n \n \n - | \n \n \n 36 | \n
| \n \n Hungary | \n \n \n 21 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 25 | \n
| \n \n Indonesia | \n \n \n 69 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 69 | \n
| \n \n Luxembourg | \n \n \n - | \n \n \n 5 | \n \n \n 1 | \n \n \n - | \n \n \n 7 | \n
| \n \n Spain | \n \n \n - | \n \n \n - | \n \n \n 161 | \n \n \n - | \n \n \n 161 | \n
| \n \n Rest of Europe | \n \n \n 82 | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 93 | \n
| \n \n Rest of world | \n \n \n 660 | \n \n \n 20 | \n \n \n 16 | \n \n \n - | \n \n \n 695 | \n
| \n \n On December 31, 2024 | \n \n \n 6,926 | \n \n \n 370 | \n \n \n 286 | \n \n \n 18 | \n \n \n 7,601 | \n
| \n \n Credit risk concentrations \u2013 Government bonds per country of risk | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 1 | \n
| \n \n United States | \n \n \n 6,632 | \n \n \n - | \n \n \n 62 | \n \n \n - | \n \n \n 6,694 | \n
| \n \n Netherlands | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n \n United Kingdom | \n \n \n - | \n \n \n 289 | \n \n \n - | \n \n \n 17 | \n \n \n 307 | \n
| \n \n Austria | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n 10 | \n
| \n \n Belgium | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n \n France | \n \n \n - | \n \n \n 28 | \n \n \n 8 | \n \n \n - | \n \n \n 36 | \n
| \n \n Hungary | \n \n \n 20 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 24 | \n
| \n \n Indonesia | \n \n \n 71 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 71 | \n
| \n \n Luxembourg | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n \n Spain | \n \n \n - | \n \n \n - | \n \n \n 153 | \n \n \n - | \n \n \n 153 | \n
| \n \n Rest of Europe | \n \n \n 46 | \n \n \n - | \n \n \n 13 | \n \n \n - | \n \n \n 58 | \n
| \n \n Rest of world | \n \n \n 581 | \n \n \n 21 | \n \n \n 8 | \n \n \n - | \n \n \n 610 | \n
| \n \n On December 31, 2023 | \n \n \n 7,349 | \n \n \n 338 | \n \n \n 265 | \n \n \n 17 | \n \n \n 7,969 | \n
| \n \n Credit risk concentrations \u2013 Credit rating | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n Total 2024 | \n
| \n \n AAA | \n \n \n 169 | \n \n \n 434 | \n \n \n 2,888 | \n \n \n 1,892 | \n \n \n 5,383 | \n
| \n \n AA | \n \n \n 5,857 | \n \n \n 2,686 | \n \n \n 1,202 | \n \n \n - | \n \n \n 9,745 | \n
| \n \n A | \n \n \n 823 | \n \n \n 16,127 | \n \n \n 3,169 | \n \n \n - | \n \n \n 20,119 | \n
| \n \n BBB | \n \n \n 417 | \n \n \n 20,099 | \n \n \n 847 | \n \n \n - | \n \n \n 21,363 | \n
| \n \n BB | \n \n \n 265 | \n \n \n 834 | \n \n \n 99 | \n \n \n - | \n \n \n 1,198 | \n
| \n \n B | \n \n \n 53 | \n \n \n 398 | \n \n \n 94 | \n \n \n - | \n \n \n 545 | \n
| \n \n CCC or lower | \n \n \n 18 | \n \n \n 205 | \n \n \n 503 | \n \n \n - | \n \n \n 726 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 83 | \n \n \n 83 | \n
| \n \n On December 31, 2024 1 | \n \n \n 7,601 | \n \n \n 40,783 | \n \n \n 8,802 | \n \n \n 1,976 | \n \n \n 59,162 | \n
| \n \n Credit risk concentrations \u2013 Credit rating | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n Total 2023 1 | \n
| \n \n AAA | \n \n \n 166 | \n \n \n 503 | \n \n \n 2,462 | \n \n \n 3,915 | \n \n \n 7,046 | \n
| \n \n AA | \n \n \n 6,444 | \n \n \n 2,262 | \n \n \n 1,160 | \n \n \n - | \n \n \n 9,866 | \n
| \n \n A | \n \n \n 723 | \n \n \n 16,352 | \n \n \n 2,101 | \n \n \n - | \n \n \n 19,176 | \n
| \n \n BBB | \n \n \n 354 | \n \n \n 17,408 | \n \n \n 404 | \n \n \n - | \n \n \n 18,165 | \n
| \n \n BB | \n \n \n 205 | \n \n \n 838 | \n \n \n 78 | \n \n \n - | \n \n \n 1,121 | \n
| \n \n B | \n \n \n 69 | \n \n \n 496 | \n \n \n 30 | \n \n \n - | \n \n \n 596 | \n
| \n \n CCC or lower | \n \n \n 9 | \n \n \n 245 | \n \n \n 618 | \n \n \n - | \n \n \n 872 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 144 | \n \n \n 147 | \n
| \n \n On December 31, 2023 2 | \n \n \n 7,969 | \n \n \n 38,106 | \n \n \n 6,853 | \n \n \n 4,059 | \n \n \n 56,988 | \n
| \n \n Credit risk concentrations \u2013 mortgage loans | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n Agricultural | \n \n \n 47 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 47 | \n \n \n - | \n
| \n \n Apartment | \n \n \n 5,618 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,618 | \n \n \n \n \n (8) \n | \n
| \n \n Industrial | \n \n \n 474 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 474 | \n \n \n - | \n
| \n \n Office | \n \n \n 1,270 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,270 | \n \n \n \n \n (109) \n | \n
| \n \n Retail | \n \n \n 1,384 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,384 | \n \n \n \n \n (1) \n | \n
| \n \n Other commercial | \n \n \n 1,885 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1,886 | \n \n \n - | \n
| \n \n On December 31, 2024 | \n \n \n 10,679 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 10,680 | \n \n \n \n \n (118) \n | \n
| \n \n Credit risk concentrations \u2013 mortgage loans | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n Agricultural | \n \n \n 46 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 46 | \n \n \n - | \n
| \n \n Apartment | \n \n \n 5,365 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,365 | \n \n \n \n \n (10) \n | \n
| \n \n Industrial | \n \n \n 410 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 410 | \n \n \n - | \n
| \n \n Office | \n \n \n 1,300 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,300 | \n \n \n \n \n (14) \n | \n
| \n \n Retail | \n \n \n 1,372 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,372 | \n \n \n \n \n (1) \n | \n
| \n \n Other commercial | \n \n \n 1,663 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1,664 | \n \n \n - | \n
| \n \n On December 31, 2023 | \n \n \n 10,156 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 10,156 | \n \n \n \n \n (26) \n | \n
Aegon's investments in unconsolidated structured entities such as RMBSs, CMBSs, and ABSs and investment funds are presented in the line item \"Investments\" of the statement of financial position. Aegon's interests in these unconsolidated structured entities can be characterized as basic interests, Aegon does not have loans, derivatives, guarantees, or other interests related to these investments. Any existing commitments such as future purchases of interests in investment funds are disclosed in note 39 Commitments and contingencies.
For debt instruments, specifically for RMBSs, CMBSs and ABSs, the maximum exposure to loss is equal to the carrying amount which is reflected in the credit risk concentration table regarding debt securities and money market investments. To\u00a0manage credit risk Aegon invests primarily in senior notes of\u00a0RMBSs, CMBSs and ABSs. The composition of the RMBSs, CMBSs and ABSs\u00a0portfolios of Aegon are widely dispersed looking at the individual amount per entity, therefore Aegon only\u00a0has non-controlling interests in individual unconsolidated structured entities. Furthermore, these investments are not originated by Aegon.
As collateral manager of CLOs issued in Europe, to the extent that it acts as an originator-manager, Aegon is subject to risk retention requirements to hold investments in the CLOs it manages. Such risk retention is often participation in the subordinated tranches of the structure which concentrates credit risk of the underlying assets of the CLO. Aegon\u2019s maximum exposure to credit risk is the carrying amount of these investments, which is EUR 192,775 million on December 31, 2024 (2023: EUR 167,411 million).
Except for commitments as noted in note 39 Commitments and contingencies,\u00a0Aegon did not provide, nor is required to provide financial or other support to unconsolidated structured entities. Nor does Aegon have intentions to provide financial or other support to unconsolidated structured entities in which Aegon has an interest or previously had an interest.
For RMBSs, CMBSs and ABSs\u00a0in which Aegon has an interest at reporting date, the following table presents the total income received from those interests. The Investments column reflects the carrying values recognized in the statement of financial position of Aegon's interests in RMBSs, CMBSs, and ABSs.
| \n | \n\n \n Total income for the year ended December 31, 2024 | \n \n \n December 31, 2024 | \n ||
| \n | \n\n \n Interest income | \n \n \n Total gains and losses on sale of assets | \n \n \n Total | \n \n \n Investments | \n
| \n \n Residential mortgage-backed securities | \n \n \n 58 | \n \n \n \n \n (13) \n | \n \n \n 45 | \n \n \n 684 | \n
| \n \n Commercial mortgage-backed securities | \n \n \n 97 | \n \n \n 98 | \n \n \n 194 | \n \n \n 2,582 | \n
| \n \n Asset-backed securities | \n \n \n 38 | \n \n \n 12 | \n \n \n 50 | \n \n \n 585 | \n
| \n \n ABSs - Other | \n \n \n 206 | \n \n \n 58 | \n \n \n 264 | \n \n \n 4,952 | \n
| \n \n Total | \n \n \n 399 | \n \n \n 155 | \n \n \n 554 | \n \n \n 8,802 | \n
| \n | \n\n \n Total income for the year ended December 31, 2023 | \n \n \n December 31, 2023 | \n ||
| \n | \n\n \n Interest income | \n \n \n Total gains and losses on sale of assets | \n \n \n Total | \n \n \n Investments | \n
| \n \n Residential mortgage-backed securities | \n \n \n 67 | \n \n \n \n \n (15) \n | \n \n \n 52 | \n \n \n 933 | \n
| \n \n Commercial mortgage-backed securities | \n \n \n 92 | \n \n \n 12 | \n \n \n 105 | \n \n \n 2,323 | \n
| \n \n Asset-backed securities | \n \n \n 40 | \n \n \n 14 | \n \n \n 54 | \n \n \n 560 | \n
| \n \n ABSs - Other | \n \n \n 134 | \n \n \n 57 | \n \n \n 191 | \n \n \n 3,037 | \n
| \n \n Total | \n \n \n 334 | \n \n \n 68 | \n \n \n 402 | \n \n \n 6,853 | \n
The estimation of credit exposure for risk management purposes is complex and requires the use of models, as the exposure varies with changes in market conditions, expected cash flows and the passage of time. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring, of the associated loss ratios and of default correlations between counterparties. Aegon measures credit risk using Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). This is similar to the approach used for the purposes of measuring the Expected Credit Loss (ECL) under IFRS 9. See section on ECL developments in the reporting period later in this note for more details.
Losses as a result of credit risk are a natural part of investing in fixed-income securities. The amount of and compensation for\u00a0this risk are related. A significant management measure to avoid excessive credit risk is to diversify and limit exposure to\u00a0individual issuers.
\nIFRS 9 outlines a \"three-stage\" model for impairment based on relative changes in credit quality since initial recognition:
A financial instrument that is not credit-impaired on initial recognition is classified in \"Stage 1\";
If a significant increase in credit risk (\"SICR\") since initial recognition is identified, the financial instrument is moved to \"Stage\u00a02\" but is not yet deemed to be credit-impaired (see \u201cSignificant increase in credit risk\u201d for further details);
If the financial instrument is credit-impaired, the financial instrument is then moved to \"Stage 3.\"
Credit risk is continuously monitored by Aegon in all the above stages.
Financial instruments in Stage 1 have their expected credit loss (ECL) measured at an amount equal to the portion of lifetime expected credit losses that result from default events possible within the follow 12 months. Financial instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit-impaired on initial recognition. Their ECL is always measured on a\u00a0lifetime basis.\u00a0
| \n | \n\n \n Stage 1 Impaired | \n \n \n Stage 2 Under-performing | \n \n \n Stage 3 Non-performing | \n \n \n \n \n Purchased or Originated Credit Impaired (POCI) \n | \n
| \n \n ECL | \n \n \n 12 month ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n
| \n \n Provision Trigger | \n \n \n n.a. | \n \n \n Quantitative and Qualitative Triggers | \n \n \n Qualitative Triggers | \n \n \n Qualitative Triggers | \n
| \n \n Days Past Due (\"DPD\") Backstop | \n \n \n \n \n Up to date and early arrears (< 30 DPD) \n | \n \n \n \n \n > 30 DPD (rebuttable presumption) \n | \n \n \n \n \n > 90 DPD (rebuttable presumption) \n | \n \n \n n.a. | \n
| \n \n Interest Income | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on net carrying amount | \n \n \n Interest calculated on net carrying amount using a credit-adjusted effective interest rate | \n
Following this assessment, IFRS 9 requires the incorporation of multiple, forward looking macro- scenarios to drive the ECL provision.
IFRS 9 requires that the measurement of ECL represent an unbiased probability-weighted amount that is to be determined by:
Evaluating a range of possible outcomes;\u00a0
Use reasonable and supportable information available without undue cost and effort about past events;
Current conditions; and\u00a0
Forecasts of future economic conditions.
When incorporating forward looking information, consideration should be given to the relevance of the information (and\u00a0the\u00a0availability of more relevant information) for each specific financial instrument or group of financial instruments. To\u00a0the extent relevant, forward-looking information used for the measurement of ECLs it needs to be consistent with that used\u00a0for\u00a0the\u00a0assessment of a significant increase in credit risk.
Credit losses are calculated as the product of projected probability of default, loss given default and exposure at default and are discounted using an appropriate discount rate. The ECL is determined as the probability weighted discounted credit losses that are determined for different scenarios (i.e. base, positive, adverse).\u00a0
Given the need to adapt the models to the different portfolio characteristics, all ECL models have different key judgments and assumptions. As such, the below paragraphs outline the key judgements and assumptions made by the Group in addressing the key requirements on a model-by-model basis.
The Group employs different models to calculate the ECL on different asset classes.
For bonds and private placements, the Group applies a global correlation model. It provides correlations of credit quality movements across different asset classes, linked with movements in the macro economy. A global correlation model is therefore used for determining the conditional PD and LGD, given a macroeconomic scenario. Unconditional PD and LGD curves are modelled with use of different methods for sovereign debt, corporate bonds and private placements.\u00a0
For commercial mortgage loans and mortgage-backed securities, the parameters are estimated with commercial mortgage metrics that use corporate bond PD and LGD estimates further adjusted with other assumptions based on debt service coverage and loan-to-value ratios.\u00a0
The Group applies a separate model for asset-backed securities, which pools the instruments based on the underlying collateral and estimates credit loss parameters collectively. Collateralized debt (loan) obligations (CDOs and CLOs) are special types of asset-backed securities to which a different set of models are applied depending on the region of the exposure.
\nAegon considers a financial instrument to have experienced a significant increase in credit risk when one or more of the following quantitative, qualitative or backstop criteria have been met:
| \n \n Asset class | \n \n \n Quantitative criteria | \n \n \n Qualitative criteria | \n \n \n Backstop criteria | \n
| \n \n Commercial mortgages | \n \n \n Relative change in Forward-in-Time Probability of Default | \n \n \n None | \n \n \n 60 days past due backstop | \n
| \n \n Private loans | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Debt securities | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Structured finance | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n 30 days past due backstop | \n
| \n \n Deposits with financial institutions | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Loan commitments | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n | \n\n | \n
| \n \n Financial guarantees | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n | \n\n | \n
The quantitative factor(s) should indicate whether the credit risk of an instrument has increased significantly since initial recognition. When making this assessment, Aegon shall use the change in the risk of a default occurring over the expected life\u00a0of the financial instrument. Aegon uses a mix of relative and absolute thresholds:
The relative threshold measures the relative increase in credit risk since origination.\u00a0
The absolute threshold defines a stage for each rating and is mainly used when the rating at origination is not available or when an instrument is already in default.
The relative thresholds are defined in two steps:
A PD-based statistical analysis is performed to determine an optimal PD threshold that provides the best predictor for\u00a0default;
The PD-based thresholds are translated into rating-based rules, which are more intuitive and practically applicable.
These PD thresholds can be translated into rating-based thresholds using standard Moody\u2019s rating to PD mappings. The\u00a0difference between the PD at origination and the PD corresponding to the threshold determines the number of notches that the rating must drop by. For example, for a one-year-old instrument with a one year remaining maturity this gives the following result:\u00a0
\n\nPD amounts used by Aegon are grouped into ranges in below table. Each range contains the minimum and maximum of PDs on both financial and corporate assets of a 1-10 year term. As Aegon US represents the Group the best, PD amounts of Americas is presented below.
| \n \n PD range 2024 | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0001 | \n \n \n 0.0021 | \n
| \n \n AA | \n \n \n 0.0002 | \n \n \n 0.0034 | \n
| \n \n A | \n \n \n 0.0006 | \n \n \n 0.0052 | \n
| \n \n BBB | \n \n \n 0.0017 | \n \n \n 0.0079 | \n
| \n \n BB | \n \n \n 0.0048 | \n \n \n 0.0131 | \n
| \n \n B | \n \n \n 0.0120 | \n \n \n 0.0307 | \n
| \n \n CCC or lower | \n \n \n 0.0196 | \n \n \n 1.0000 | \n
| \n \n PD range 2023 | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0002 | \n \n \n 0.0024 | \n
| \n \n AA | \n \n \n 0.0003 | \n \n \n 0.0037 | \n
| \n \n A | \n \n \n 0.0007 | \n \n \n 0.0057 | \n
| \n \n BBB | \n \n \n 0.0020 | \n \n \n 0.0085 | \n
| \n \n BB | \n \n \n 0.0055 | \n \n \n 0.0085 | \n
| \n \n B | \n \n \n 0.0138 | \n \n \n 0.0308 | \n
| \n \n CCC or lower | \n \n \n 0.0205 | \n \n \n 1.0000 | \n
For debt securities, private loans, structured finance securities and deposits with financial institutions the relative change of the credit rating is used as primary indicator to assess significant increase in credit risk, for this purpose external credit ratings are used.\u00a0
\nFor debt securities, private loans, structured finance securities and deposits with financial institutions the watchlist approach is applied as an additional qualitative criterion.\u00a0 The watchlist approach means exposure of instruments on the watchlist are intensively monitored. Financial assets are added to the watchlist based on whether their relative change in fair value has surpassed a predetermined threshold:
The fair value either drops to 80% and below the (amortized) cost price and stays there for six months; or
The fair value falls by 20% over 3 months; or
The fair value falls to 60% and below the (amortized) cost price.
In relation to debt securities and private loans, where a watchlist is used to monitor credit risk, this assessment is performed at the counterparty level and on a periodic basis. The criteria used to identify SICR are monitored and reviewed periodically for\u00a0appropriateness by the Group.
\nA backstop is applied to exposures considered to have experienced a significant increase in credit risk if the borrower is more than 30 days past due on its contractual payments in the case of structured finance, and 60 days in the case of commercial mortgage loans. No backstop is applied to the other asset classes.\u00a0
Aegon has used the low credit risk exemption for debt instruments. Debt instruments that have a credit rating that is responds with \"investment grade\" (rating \"BBB\" or higher) are considered as having low credit risk. As such, external and internal credit ratings are used respectively for these assets to assess whether a significant increase in credit risk has occurred.
Low credit risk exemption is applied for staging purposes on instruments rated BBB and higher.
\nFor loan commitments and financial guarantees, Aegon defines default in the same way as for the respective loan or financial instrument to which a commitment relates or a guarantee is issued (considering the factors described above).
\nAegon assesses a financial instrument to be in default or credit-impaired using the following criteria:
| \n \n Asset class | \n \n \n Quantitative criteria | \n \n \n Qualitative criteria | \n
| \n \n Commercial mortgages | \n \n \n 90 days past due backstop | \n \n \n Foreclosure | \n
| \n | \n\n | \n\n \n Sale at material credit-related economic loss | \n
| \n \n Debt securities and private loans | \n \n \n 5 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Breach of significant covenants without reasonably supportable waiver obtained | \n
| \n | \n\n | \n\n \n Distressed restructuring taking place | \n
| \n | \n\n | \n\n \n Bankruptcy or an equivalent of an injunction for the obligor was filed | \n
| \n | \n\n | \n\n \n Obligor was classified as default internally | \n
| \n \n Deposits with financial institution | \n \n \n 5 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Breach of significant covenants without reasonably supportable waiver obtained | \n
| \n | \n\n | \n\n \n Distressed restructuring taking place | \n
| \n | \n\n | \n\n \n Bankruptcy or an equivalent of an injunction for the obligor was filed | \n
| \n | \n\n | \n\n \n Obligor was classified as default internally | \n
| \n \n Structured securities | \n \n \n 90 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Loss coverage ratio (Ratio of credit-related losses to the par value of a debt security) is below 1 | \n
| \n \n Receivables | \n \n \n 90 days past due backstop | \n \n | \n
| \n \n Loan commitments | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n \n Defined as for the respective loans to which the commitment relates | \n
| \n \n Financial guarantee contracts | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n
Distressed restructuring means material forgiveness, or postponements of principal, interest, or where relevant, fees which is likely to result in a diminished financial obligation.\u00a0
In addition to the criteria included in the table above, Aegon identifies other indicators of unlikeliness to pay, which include but are not limited to the following:
A borrower\u2019s sources of recurring income are no longer available to meet the payments of installments;
There are justified concerns about a borrower\u2019s future ability to generate stable and sufficient cash flows;
The borrower\u2019s overall leverage level has significantly increased beyond applicable limits or there are justified expectations\u00a0of such changes to leverage;
For the exposures to an individual: default of a company fully owned by a single individual where this individual provided the\u00a0institution with a personal guarantee for all obligations of a company;
Material fraud; or
Death of a client.
All the criteria above have been applied to the financial instruments held by Aegon and are consistent with the definition of default used for internal credit risk management purposes. The definition of default has been applied consistently to model the Probability of Default, Exposure at Default throughout Aegon\u2019s expected loss calculations.
An instrument is considered to no longer be in default (i.e. to have \"cured\") when it no longer meets any of the default criteria for a consecutive period of six\u00a0months and an assessment has shown the obligor is no longer unlikely to pay. This period of six months considers the likelihood of a financial instrument returning to default status after cure using different possible cure definitions.
\nThe ECL is measured on either a \"12-month basis\" (Stage 1) or \"lifetime basis\" (Stages 2 and 3), depending on whether a\u00a0significant increase in credit risk has occurred since initial recognition or whether an asset is considered to be credit-impaired.\u00a0
The expected credit losses are the discounted product of the Probability of Default, Exposure at Default, and Loss\u00a0Given\u00a0Default, defined as follows:
The PD represents the likelihood of a borrower defaulting on its financial obligation (as per \u201cDefinition of default and credit-impaired\u201d above), either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.\u00a0
EAD is based on the amounts the Group expects to be owed at the time of default.\u00a0
Loss Given Default represents Aegon\u2019s expectation of the extent of loss on a defaulted exposure. LGD varies by\u00a0type\u00a0of\u00a0counterparty, type and seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at the time of default.
The discount rate used in the ECL calculation is the original effective interest rate or an approximation thereof. The lifetime PD is calculated for a financial instrument that results in default by summing the probabilities of all future developments which end-up in the ECL. All possible future developments are enumerated and for each future development a probability is calculated by statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.\u00a0
Forward-looking economic information is included in determining the 12-month and lifetime ECL, and lifetime PD by using a\u00a0set\u00a0of\u00a0variables describing the state of the macro economy as input in the calculation of the probability of default and prepayment.
As described above, and subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the Group measures ECL considering the risk of default over the maximum contractual period (including any borrower\u2019s extension options) over which Aegon is exposed to credit risk, even if the Group considers a\u00a0longer\u00a0period.\u00a0
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of significant increase in credit risk (SICR) and the calculation of ECL both incorporate forward-looking information. Aegon has performed historical analysis and identified the key economic variables impacting credit risk and expected credit losses for each portfolio.\u00a0
These economic variables and their associated impact on the ECL and Lifetime PD vary by financial instrument. Expert judgment has also been applied in this process. Forecasts of these economic variables (the \u201cbase economic scenario\u201d) give\u00a0the best estimate view of the economy over the next five years. After five years, to project the economic variables out for the\u00a0full remaining lifetime of each instrument, a mean reversion approach has been used, which means that economic variables tend to either a long run average rate (e.g. for unemployment) or a long run average growth rate (e.g. GDP) over a period of three years. Statistical regression analysis has been performed to understand the impact changes in these macro-economic variables have had historically on default and prepayment rates.
Using the base scenario as a starting point, three macro-economic scenarios are generated by applying shocks to the macro-economic variables in a positive and negative direction, taking into account their correlation as historically observed, resulting in a positive, neutral, or negative scenario. The shocks applied correspond to the historical average deviance from the long-term mean observed in the best/worst 10% of the historically observed quarters. The ECL is calculated for each of the three scenarios, multiplied by the scenario weighting, and summed. The use of multiple economic scenarios ensures that the ECL represents the best estimate of expected credit loss and is not merely the credit loss in the most likely scenario.
As with any economic forecasts, the projections and likelihoods of occurrence are subject to a high degree of inherent uncertainty, and therefore, the actual outcomes may be significantly different to those projected. The Group considers these\u00a0forecasts to represent its best estimate of the possible outcomes.
\nThe most significant period-end assumptions used for the ECL estimate are set out below. The scenarios \u201cbase\u201d, \u201cupside\u201d, and\u00a0\u201cdownside\u201d were used for all portfolios.
| \n \n Economic variable assumptions, December 31, 2024 | \n \n | \n\n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.33 | \n \n \n 4.26 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.43 | \n \n \n 4.35 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 3.17 | \n \n \n 3.74 | \n \n \n 3.94 | \n \n \n 4.04 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.08 | \n \n \n 4.09 | \n \n \n 4.05 | \n \n \n 4.01 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.13 | \n \n \n 3.44 | \n \n \n 3.42 | \n \n \n 3.42 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.23 | \n \n \n 7.46 | \n \n \n 6.18 | \n \n \n 5.00 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 419.04 | \n \n \n 424.10 | \n \n \n 434.08 | \n \n \n 448.91 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 439.72 | \n \n \n 456.26 | \n \n \n 471.39 | \n \n \n 489.21 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 354.16 | \n \n \n 369.92 | \n \n \n 385.26 | \n \n \n 401.39 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 23,973.45 | \n \n \n 24,343.12 | \n \n \n 24,819.66 | \n \n \n 25,356.09 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,319.86 | \n \n \n 24,807.47 | \n \n \n 25,341.29 | \n \n \n 25,943.15 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,959.57 | \n \n \n 23,369.09 | \n \n \n 24,147.35 | \n \n \n 24,980.66 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 5,912.89 | \n \n \n 5,814.62 | \n \n \n 6,098.72 | \n \n \n 6,483.85 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,264.59 | \n \n \n 6,132.21 | \n \n \n 6,356.19 | \n \n \n 6,630.75 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 3,867.82 | \n \n \n 4,095.95 | \n \n \n 4,899.05 | \n \n \n 5,712.91 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions, December 31, 2023 | \n \n | \n\n \n 2024 | \n \n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.11 | \n \n \n 4.04 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.21 | \n \n \n 4.13 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 2.31 | \n \n \n 3.24 | \n \n \n 3.71 | \n \n \n 3.89 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.03 | \n \n \n 4.06 | \n \n \n 3.97 | \n \n \n 3.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.08 | \n \n \n 3.41 | \n \n \n 3.34 | \n \n \n 3.35 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 7.56 | \n \n \n 6.90 | \n \n \n 5.70 | \n \n \n 4.88 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 400.12 | \n \n \n 393.70 | \n \n \n 394.21 | \n \n \n 403.50 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 419.87 | \n \n \n 423.62 | \n \n \n 428.16 | \n \n \n 439.72 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 339.91 | \n \n \n 347.29 | \n \n \n 352.66 | \n \n \n 363.59 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 22,900.95 | \n \n \n 23,303.78 | \n \n \n 23,825.37 | \n \n \n 24,397.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 23,354.42 | \n \n \n 23,883.09 | \n \n \n 24,451.63 | \n \n \n 25,020.82 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,039.64 | \n \n \n 22,368.94 | \n \n \n 23,099.22 | \n \n \n 23,768.80 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 4,672.66 | \n \n \n 4,796.24 | \n \n \n 5,043.19 | \n \n \n 5,368.63 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 4,950.59 | \n \n \n 5,058.20 | \n \n \n 5,256.09 | \n \n \n 5,490.26 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 2,904.90 | \n \n \n 3,226.25 | \n \n \n 3,942.26 | \n \n \n 4,603.90 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
The weightings assigned to each economic scenario were as follows:
| \n \n Weightings | \n \n \n Base | \n \n \n Upside | \n \n \n Downside | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2023 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking considerations not otherwise incorporated within the above scenarios, such as the impact of any regulatory, legislative or political changes, have also been considered, but are not deemed to have a material impact, and therefore, no adjustment has been made to the ECL for such factors. This process is reviewed and monitored for appropriateness on a quarterly basis.
\nThe Group writes-off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity; and (ii) where Aegon\u2019s recovery method is foreclosing on collateral and the\u00a0value of\u00a0the collateral is such that there is no reasonable expectation of recovering in full.\u00a0
The Group may write-off financial assets that are still subject to enforcement activity. The outstanding contractual amounts of\u00a0such assets written-off during 2024 is not material. The Group still seeks to recover amounts it is legally owed in full, but which have been partially written off due to no reasonable expectation of full recovery.
\nThe Group has the option to modify the terms of loans provided to customers due to commercial renegotiations, or for distressed loans, with a view to maximizing recovery. \u00a0Such restructuring activities include extended payment term and penalty interest arrangements. Restructuring policies and practices are based on indicators or criteria which, in the judgment of management, indicate that payment will most likely continue. These policies are kept under continuous review.
The risk of default of such assets after modification is assessed at the reporting date and compared with the risk under the\u00a0original terms at initial recognition, when the modification is not substantial and so does not result in derecognition of the\u00a0original asset. The Group monitors the subsequent performance of modified assets. Aegon may determine that the credit risk has significantly improved after restructuring, so that the assets are moved from Stage 3 or Stage 2 (Lifetime ECL) to Stage\u00a01 (12-month ECL) (see note 4.2.6\u00a0 Expected credit losses (a) for details of the Group ECL staging classification). This\u00a0is\u00a0only the case for assets that have performed in accordance with the new terms for three consecutive months or more. The gross carrying amount of such assets held on December 31 2024 was EUR 0 million (2023: EUR 0 million).
\nAegon regularly monitors industry sectors and individual debt securities for sources of changes in the ECL allowance. These\u00a0sources may include one or more of the following:\u00a0
Transfers between Stages 1, 2 and 3 due to financial instruments experiencing significant increases (or decreases) of\u00a0credit\u00a0risk or becoming credit-impaired in the period, and the consequent \u201cstep up\u201d (or \u201cstep down\u201d) between 12-month and\u00a0lifetime\u00a0ECL;\u00a0
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments de-recognized in the period;\u00a0
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of\u00a0inputs to models;\u00a0
Impacts on the measurement of ECL due to changes made to models and assumptions;\u00a0
Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;\u00a0
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and,
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during\u00a0the period.
In addition, for asset-backed securities, cash flow trends and underlying levels of collateral are monitored. Furthermore, quality ratings of investment portfolios are based on a composite of the main rating agencies (S&P, Moody\u2019s, and Fitch) and Aegon\u2019s internal rating of the counterparty. The following tables explain the changes in the loss allowance changes between the beginning and the end of the annual period due to these factors:
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Loss allowance on January 1 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n 4 | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n 1 | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n \n \n (5) \n | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n Impact on year-end ECL of exposures transferred between stages during the year | \n \n \n 2 | \n \n \n \n \n (7) \n | \n \n \n \n \n (50) \n | \n \n \n - | \n \n \n \n \n (54) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 18 | \n \n \n 3 | \n \n \n 35 | \n \n \n - | \n \n \n 56 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (38) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (42) \n | \n
| \n \n Change in models | \n \n \n \n \n (12) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (45) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (11) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (20) \n | \n
| \n \n Loss allowance on December 31 | \n \n \n \n \n (187) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Loss allowance on January 1 | \n \n \n \n \n (156) \n | \n \n \n \n \n (32) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (276) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n 2 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n 2 | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n \n \n (3) \n | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n 39 | \n \n \n - | \n \n \n - | \n
| \n \n Impact on year-end ECL of exposures transferred between stages during the year | \n \n \n 36 | \n \n \n \n \n (2) \n | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n \n \n (5) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 26 | \n \n \n 3 | \n \n \n 44 | \n \n \n - | \n \n \n 73 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (16) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Change in models | \n \n \n \n \n (5) \n | \n \n \n 6 | \n \n \n \n \n (14) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (13) \n | \n
| \n \n Net exchange differences | \n \n \n 5 | \n \n \n 1 | \n \n \n 2 | \n \n \n - | \n \n \n 9 | \n
| \n \n Loss allowance on December 31 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
The ECL allowance for debt securities measured at FVOCI of EUR 341 million (December 2023: EUR 237 million) does not reduce the carrying amount of these investments (which are measured at fair value) but gives rise to an equal and opposite gain in OCI.
Expected credit losses on loans increased by EUR (92) million to EUR (118) million as per December 2024 (2023:\u00a0(26)\u00a0million). The increase in expected credit losses was mainly driven by a mortgage loan in Aegon US and partly by the stage transfer of an office facing with occupancy and valuation challenges (2023:\u00a0EUR\u00a0(14) million).
The majority of the expected credit losses recognized are in Stage 2 EUR (75) million (2023: EUR (24) million).
Based on the tables above, the following is a reconciliation of the loss allowance movements with an impact on the income statement with the net impairment charge presented in the income statement. Other represents impairment charges on asset types which are not individually material.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Loans measured at amortized cost | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \n
| \n \n Debt securities measured at FVOCI | \n \n \n \n \n (140) \n | \n \n \n \n \n (44) \n | \n
| \n \n Other | \n \n \n \n \n (9) \n | \n \n \n \n \n (60) \n | \n
| \n \n Net impairment charge in P&L | \n \n \n \n \n (237) \n | \n \n \n \n \n (119) \n | \n
The following tables further explains changes in the gross carrying amount / market value \u00a0of the financial assets and their\u00a0significance to the changes in the loss allowance for the same portfolio as discussed above:
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 46,461 | \n \n \n 357 | \n \n \n 325 | \n \n \n 100 | \n \n \n 47,242 | \n
| \n \n Transfers: | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (200) \n | \n \n \n 200 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n \n \n (48) \n | \n \n \n 48 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n 7 | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 150 | \n \n \n \n \n (150) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n 2 | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (5,201) \n | \n \n \n \n \n (69) \n | \n \n \n \n \n (102) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (5,394) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 8,421 | \n \n \n 21 | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n 8,434 | \n
| \n \n Modification of contractual cash flows of financial assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Unrealized gains/losses through equity | \n \n \n \n \n (1,294) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (1,329) \n | \n
| \n \n Amortizations through income statement | \n \n \n 94 | \n \n \n 1 | \n \n \n 27 | \n \n \n 17 | \n \n \n 138 | \n
| \n \n Movements related to fair value hedges | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Net exchange differences | \n \n \n 3,154 | \n \n \n 22 | \n \n \n 19 | \n \n \n 6 | \n \n \n 3,201 | \n
| \n \n Other movements | \n \n \n \n \n (1) \n | \n \n \n 0 | \n \n \n \n \n (1) \n | \n \n \n \n \n (0) \n | \n \n \n \n \n (2) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (45) \n | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n \n \n (43) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 51,529 | \n \n \n 335 | \n \n \n 291 | \n \n \n 92 | \n \n \n 52,247 | \n
| \n \n Expected credit losses on December 31 | \n \n \n \n \n (187) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 50,666 | \n \n \n 413 | \n \n \n 403 | \n \n \n 125 | \n \n \n 51,607 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (80) \n | \n \n \n 80 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (45) \n | \n \n \n - | \n \n \n 45 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n 23 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 76 | \n \n \n \n \n (76) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n 59 | \n \n \n - | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (7,836) \n | \n \n \n \n \n (83) \n | \n \n \n \n \n (111) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (8,057) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 3,672 | \n \n \n 37 | \n \n \n 22 | \n \n \n - | \n \n \n 3,731 | \n
| \n \n Modification of contractual cash flows of financial assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Unrealized gains/losses through equity | \n \n \n 1,488 | \n \n \n 16 | \n \n \n 1 | \n \n \n \n \n (10) \n | \n \n \n 1,495 | \n
| \n \n Amortizations through income statement | \n \n \n 113 | \n \n \n - | \n \n \n 19 | \n \n \n 17 | \n \n \n 148 | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,637) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (1,666) \n | \n
| \n \n Other movements | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (9) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (6) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 46,461 | \n \n \n 357 | \n \n \n 325 | \n \n \n 100 | \n \n \n 47,242 | \n
| \n \n Expected credit losses on December 31 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (237) \n | \n
The total amount of undiscounted ECL at initial recognition for purchased or originated credit-impaired financial assets recognized during the period was EUR 4 million (2023: EUR 2 million).
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,182 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (162) \n | \n \n \n 162 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 75 | \n \n \n \n \n (75) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (633) \n | \n \n \n \n \n (69) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (702) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 483 | \n \n \n 76 | \n \n \n - | \n \n \n - | \n \n \n 559 | \n
| \n \n Realized gains and losses through income statement | \n \n \n 3 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Net exchange differences | \n \n \n 667 | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 674 | \n
| \n \n Other movements | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n
| \n \n (-) Expected credit losses on December 31 | \n \n \n \n \n (38) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n
| \n \n Net carrying amount on December 31 | \n \n \n 10,536 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 10,416 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 10,418 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (39) \n | \n \n \n 39 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (566) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (571) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 691 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 691 | \n
| \n \n Net exchange differences | \n \n \n \n \n (354) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (355) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,182 | \n
| \n \n (-) Expected credit losses on December 31 | \n \n \n \n \n (24) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Net carrying amount on December 31 | \n \n \n 10,123 | \n \n \n 33 | \n \n \n - | \n \n \n - | \n \n \n 10,156 | \n
ECL are sensitive to judgments and assumptions made regarding the formulation of forward-looking scenarios and how such scenarios are incorporated into the calculations. Management performs a sensitivity analysis on the ECL recognized on material classes of its assets. As ECL is not material at the end of 2024 and 2023, sensitivity on ECL is being assessed to be not material for 2024 and 2023 either.
\nMarket risk is the risk that changes in market prices (e.g. foreign exchange rates, interest rates) will affect the fulfillment cash\u00a0flows of insurance and reinsurance contracts as well as the fair value or future cash flows of financial instruments. The\u00a0objective of market risk management is to control exposures within acceptable parameters while optimizing the\u00a0return\u00a0on\u00a0risk.\u00a0
Aegon\u2019s management of market risk comprises equity price risk, interest rate risk and currency risk.
\nFluctuations in equity, real estate and capital markets have affected Aegon's profitability, capital position and sales of equity related products in the past and may continue to do so. Exposure to equity, real estate and capital markets exists in both assets and liabilities. Asset exposure exists through direct equity investment, where Aegon bears all or most of the volatility in\u00a0returns and investment performance risk. Equity market exposure is also present in insurance and investment contracts for\u00a0policyholders where funds are invested in equities, backing variable annuities, unit-linked products and mutual funds. Although\u00a0most of the risk remains with the policyholder, lower investment returns can reduce the asset management fee earned by Aegon on the asset balance in these products. In addition, some of this business has minimum return or accumulation guarantees.
In 2021, Transamerica expanded its dynamic hedge program to variable annuities with guaranteed minimum death benefit riders (GMDB) and remaining policies with guaranteed minimum income (GMIB) riders. This builds on the effective dynamic hedge program of policies with guaranteed minimum withdrawal benefits (GMWB). The dynamic hedge program covers the equity risks (and interest rate risk) embedded in the guarantees of its entire variable annuity portfolio. Dynamic hedging stabilizes cash flows and reduces sensitivities to changes in equity markets (and interest rates) on an economic basis.
The equity, real estate and other non-fixed-income portfolio of Aegon is as follows:
| \n \n Equity, real estate and non-fixed income exposure | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n
| \n \n Equity funds | \n \n \n 145 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 154 | \n
| \n \n Common shares | \n \n \n 95 | \n \n \n 14 | \n \n \n 5 | \n \n \n - | \n \n \n 114 | \n
| \n \n Preferred shares | \n \n \n 16 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 16 | \n
| \n \n Investments in real estate | \n \n \n 40 | \n \n \n - | \n \n \n 17 | \n \n \n - | \n \n \n 57 | \n
| \n \n Hedge funds | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n Other alternative investments | \n \n \n 2,682 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,682 | \n
| \n \n Other financial assets 1 | \n \n \n 1,800 | \n \n \n 716 | \n \n \n 33 | \n \n \n 2 | \n \n \n 2,551 | \n
| \n \n On December 31 | \n \n \n 4,785 | \n \n \n 730 | \n \n \n 56 | \n \n \n 10 | \n \n \n 5,582 | \n
| \n \n Equity, real estate and non-fixed income exposure | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 | \n
| \n \n Equity funds | \n \n \n 133 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 141 | \n
| \n \n Common shares | \n \n \n 106 | \n \n \n 14 | \n \n \n 5 | \n \n \n - | \n \n \n 126 | \n
| \n \n Preferred shares | \n \n \n 29 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 29 | \n
| \n \n Investments in real estate | \n \n \n 38 | \n \n \n - | \n \n \n 17 | \n \n \n - | \n \n \n 55 | \n
| \n \n Hedge funds | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Other alternative investments | \n \n \n 2,404 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,404 | \n
| \n \n Other financial assets 1 | \n \n \n 1,856 | \n \n \n 772 | \n \n \n 4 | \n \n \n 1 | \n \n \n 2,633 | \n
| \n \n On December 31 | \n \n \n 4,573 | \n \n \n 786 | \n \n \n 27 | \n \n \n 10 | \n \n \n 5,395 | \n
| \n \n Market risk concentrations \u2013 shares | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n
| \n \n Communication | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Consumer | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Financials | \n \n \n 23 | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 28 | \n
| \n \n Funds | \n \n \n 140 | \n \n \n 14 | \n \n \n - | \n \n \n - | \n \n \n 154 | \n
| \n \n Industries | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Other | \n \n \n 83 | \n \n \n - | \n \n \n 33 | \n \n \n 9 | \n \n \n 125 | \n
| \n \n On December 31 | \n \n \n 256 | \n \n \n 14 | \n \n \n 39 | \n \n \n 9 | \n \n \n 317 | \n
| \n \n Market risk concentrations \u2013 shares | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 | \n
| \n \n Communication | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Consumer | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Financials | \n \n \n 136 | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 142 | \n
| \n \n Funds | \n \n \n 30 | \n \n \n 14 | \n \n \n - | \n \n \n - | \n \n \n 45 | \n
| \n \n Industries | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 11 | \n
| \n \n Other | \n \n \n 84 | \n \n \n - | \n \n \n 4 | \n \n \n 9 | \n \n \n 97 | \n
| \n \n On December 31 | \n \n \n 267 | \n \n \n 14 | \n \n \n 10 | \n \n \n 9 | \n \n \n 300 | \n
The table that follows sets forth the closing levels of certain major indices at the end of the last five years.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n \n \n 2020 | \n
| \n \n S&P 500 | \n \n \n 5,882 | \n \n \n 4,770 | \n \n \n 3,840 | \n \n \n 4,766 | \n \n \n 3,756 | \n
| \n \n Nasdaq | \n \n \n 21,012 | \n \n \n 15,011 | \n \n \n 10,466 | \n \n \n 15,645 | \n \n \n 12,888 | \n
| \n \n FTSE 100 | \n \n \n 8,173 | \n \n \n 7,733 | \n \n \n 7,452 | \n \n \n 7,385 | \n \n \n 6,461 | \n
| \n \n AEX | \n \n \n 879 | \n \n \n 787 | \n \n \n 689 | \n \n \n 798 | \n \n \n 625 | \n
An analysis of Aegon\u2019s sensitivity to a 10% and 25% increase or decrease in equity prices at the reporting date, assuming that all other variables remain constant, is presented below.
| \n \n Sensitivity analysis of CSM , net result and shareholders\u2019 equity to equity markets | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n
| \n \n Equity 10% increase | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n \n \n (8) \n | \n \n \n \n \n (6) \n | \n \n | \n\n \n \n \n (5) \n | \n \n \n \n \n (13) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n \n \n (30) \n | \n \n \n - | \n \n \n \n \n (271) \n | \n \n \n \n \n (265) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 363 | \n \n \n 154 | \n \n \n 160 | \n \n \n 310 | \n \n \n 422 | \n \n \n 397 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Equity 10% decrease | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n 8 | \n \n \n 1 | \n \n | \n\n \n 4 | \n \n \n 11 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 7 | \n \n \n 7 | \n \n \n - | \n \n \n 229 | \n \n \n 225 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (331) \n | \n \n \n \n \n (169) \n | \n \n \n \n \n (178) \n | \n \n \n \n \n (316) \n | \n \n \n \n \n (465) \n | \n \n \n \n \n (431) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Equity 25% increase | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n \n \n (24) \n | \n \n \n \n \n (15) \n | \n \n | \n\n \n \n \n (31) \n | \n \n \n \n \n (50) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (95) \n | \n \n \n \n \n (99) \n | \n \n \n - | \n \n \n \n \n (737) \n | \n \n \n \n \n (721) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 916 | \n \n \n 398 | \n \n \n 413 | \n \n \n 775 | \n \n \n 1,035 | \n \n \n 989 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Equity 25% decrease | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n 24 | \n \n \n 9 | \n \n | \n\n \n 35 | \n \n \n 53 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 326 | \n \n \n 340 | \n \n \n - | \n \n \n 965 | \n \n \n 945 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (847) \n | \n \n \n \n \n (770) \n | \n \n \n \n \n (807) \n | \n \n \n \n \n (804) \n | \n \n \n \n \n (1,499) \n | \n \n \n \n \n (1,434) \n | \n
Over 2024 rising equity markets and interest rates in the US have resulted in reduced liability sensitivities, driven primarily by convex exposures of Indexed Universal Life and Variable Annuity products. Changes to asset sensitivities follow the liability changes, as hedge programs are rebalanced to match liabilities.
\nAegon bears interest rate risk with many of its products. In cases where cash flows are highly predictable, investing in assets that closely match the cash flow profile of the liabilities can offset this risk. For some Aegon country units, local capital markets are not well developed, which prevents the complete matching of assets and liabilities for those businesses. For\u00a0some products, cash flows are less predictable as a result of policyholder actions that can be affected by the level of interest rates.
In periods of rapidly increasing interest rates, policy loans, surrenders and withdrawals may increase. Premiums in flexible premium policies may decrease as policyholders seek investments with higher perceived returns. This activity may result in\u00a0cash payments by Aegon requiring the sale of invested assets at a time when the prices of those assets are adversely affected by the increase in market interest rates; this may result in realized investment losses. These cash payments to policyholders result in a decrease in total invested assets and a decrease in net result.
During periods of sustained low interest rates, Aegon may not be able to preserve margins as a result of minimum interest rate guarantees and minimum guaranteed crediting rates provided on policies. Also, investment earnings may be lower because the interest earnings on new fixed-income investments are likely to have declined with the market interest rates. Mortgage loans and redeemable bonds in the investment portfolio are more likely to be repaid as borrowers seek to borrow at\u00a0lower interest rates and Aegon may be required to reinvest the proceeds in securities bearing lower interest rates. Accordingly, net result declines as a result of a decrease in the spread between returns on the investment portfolio and the\u00a0interest rates either credited to policyholders or assumed in reserves.
Aegon manages interest rate risk closely, taking into account all the complexity regarding policyholder behavior and management action. Aegon employs sophisticated interest rate measurement techniques and actively uses derivatives and other risk mitigation tools to closely manage its interest rate risk exposure. Aegon operates an Investment & Counterparty Risk policy that limits the amount of interest rate risk to which the Group is exposed. All derivative use is governed by Aegon's Derivative Use Policy. A detailed description of the use of derivatives within Aegon is included in note 20 Derivatives.
Transamerica's dynamic hedge program contains variable annuities with guaranteed minimum death benefit riders (GMDB) and policies with guaranteed minimum income (GMIB) riders. This builds on the effective dynamic hedge program of policies with guaranteed minimum withdrawal benefits (GMWB). The dynamic hedge program covers the interest rate (and equity risks) embedded in the guarantees of its entire variable annuity portfolio. Dynamic hedging stabilizes cash flows and reduces sensitivities to changes in interest rates (and equity markets) on an economic basis.
The following table shows interest rates at the end of each of the past five years.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n \n \n 2020 | \n
| \n \n 3 month Term SOFR | \n \n \n 4.31% | \n \n \n 5.33% | \n \n \n 4.59% | \n \n \n 0.91% | \n \n \n 0.07% | \n
| \n \n 3-month EURIBOR | \n \n \n 2.71% | \n \n \n 3.91% | \n \n \n 2.13% | \n \n \n -0.57% | \n \n \n -0.55% | \n
| \n \n 10-year US Treasury | \n \n \n 4.57% | \n \n \n 3.86% | \n \n \n 3.83% | \n \n \n 1.78% | \n \n \n 0.91% | \n
| \n \n 10-year Dutch government | \n \n \n 2.59% | \n \n \n 2.32% | \n \n \n 2.91% | \n \n \n -0.03% | \n \n \n -0.48% | \n
An analysis of Aegon\u2019s sensitivity to a 100 basis points parallel increase or decrease in market interest rates at the reporting date, assuming that all other variables remain constant, is presented below:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n
| \n \n 100 bps increase - Yield curve | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n \n \n (12) \n | \n \n \n \n \n (729) \n | \n \n | \n\n \n \n \n (114) \n | \n \n \n \n \n (652) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (717) \n | \n \n \n \n \n (3,596) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (1,029) \n | \n \n \n \n \n (3,876) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 49 | \n \n \n 742 | \n \n \n 4,009 | \n \n \n 126 | \n \n \n 1,008 | \n \n \n 4,158 | \n
| \n \n 100 bps decrease - Yield curve | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n 15 | \n \n \n 859 | \n \n | \n\n \n 35 | \n \n \n 655 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 957 | \n \n \n 4,255 | \n \n \n 6 | \n \n \n 1,258 | \n \n \n 4,625 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (50) \n | \n \n \n \n \n (989) \n | \n \n \n \n \n (5,113) \n | \n \n \n \n \n (133) \n | \n \n \n \n \n (1,306) \n | \n \n \n \n \n (5,303) \n | \n
Over 2024 rising interest rates and equity markets in the US have led to reduced liability sensitivities, driven primarily by convex exposures of Variable Annuity products. Other long duration products such as Long Term Care and Unit Linked products with Non Lapse or secondary guarantees also have a natural convexity, leading to lower liability sensitivities when interest rate rise. Changes to asset sensitivities follow the liability changes, as hedge programs are rebalanced to match liabilities.
The exposures of our different products vary, and we have a number of asymmetric exposures, in particular. This is mainly explained by certain US products:
For a number of products (e.g. our Stable Value Solutions and parts of the Universal Life products), we have stable surrender values alongside stable crediting rates. This means that, as interest rates rise, it becomes more attractive in the short term for customers to lapse their policies and, due to the market movements, this leads to increased losses. There are also asymmetries from accounting rules of IFRS, where decreases in interest rates which turn SVS liabilities negative will be floored at zero based on IFRS 9 rules applied to these contracts.\u00a0
For other longer duration products such as Long-Term Care and Unit Linked products with non-lapse or secondary guarantees, we have a natural convexity, meaning we are more exposed to interest rates falling, which results in adverse sensitivities on these products than to interest rates rising which are positive. This is because we still expect to receive premiums over the next 10 to 20 years but will continue to pay claims for many years thereafter. The interaction of these two factors with the more symmetrical exposures on other products results in our overall sensitivities showing an adverse impact to both rising and falling interest rates.
On 30 September 2024, the remaining synthetic LIBOR rates were published for the last time and LIBOR came to an end. Before this, all derivative financial instruments using USD LIBOR and GBP LIBOR as a benchmark rate, transitioned to an alternative benchmark rate. Following the formal discontinuation, there are no remaining financial derivative instruments to\u00a0be\u00a0transitioned to an alternative benchmark rate.
\nAs an international group, Aegon is subject to foreign currency translation risk. Foreign currency exposure exists mainly when policies are denominated in currencies other than the issuer's functional currency. Currency risk in the investment portfolios backing insurance and investment liabilities is managed using asset-liability-matching principles. Assets allocated to equity are kept in local currencies to the extent shareholders' equity is required to satisfy regulatory and self-imposed capital requirements. Therefore, currency exchange rate fluctuations will affect the level of shareholders' equity as a result of the conversion of subsidiaries into euros, the Group's presentation currency. Aegon holds the remainder of its capital base (perpetual capital securities, subordinated and senior debt) in various currencies in amounts that are targeted to correspond to the book value of the country units. This balancing mitigates currency translation impacts on shareholders' equity and leverage ratios. Aegon does not hedge the income streams from the main non-euro units and, as a result, earnings may fluctuate due to currency translation. As Aegon has significant business segments in the Americas and in the United Kingdom, the principal sources of exposure from currency fluctuations are due to the differences between the US dollar and the euro, and between the UK pound and the euro. Aegon may experience significant changes in net result and shareholders' equity because of these fluctuations.
Aegon operates an Investment & Counterparty Risk Policy, which applies currency risk exposure limits both at Group and regional levels, and under which direct currency speculation or program trading by country units is not allowed unless explicit approval has been granted by the Group Risk and Capital Committee and the CEO. Assets should be held in the functional currency of the business written or hedged back to that currency. Where this is not possible or practical, remaining currency exposure should be sufficiently documented and limits are placed on the total exposure at both group level and for individual country units.
Information on Aegon's historical net result and shareholders' equity in functional currency are shown in the table below:
| \n \n Amounts in EUR million | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Net result | \n \n | \n\n | \n\n | \n
| \n \n \n \n Americas (in USD) \n | \n \n \n 198 | \n \n \n \n \n (266) \n | \n \n \n 562 | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 56 | \n \n \n 26 | \n \n \n 57 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Equity in functional currency | \n \n | \n\n | \n\n | \n
| \n \n \n \n Americas (in USD) \n | \n \n \n 3,838 | \n \n \n 3,690 | \n \n \n 3,456 | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 1,198 | \n \n \n 1,256 | \n \n \n 1,373 | \n
The summary quantitative information about Aegon\u2019s exposure to currency risk arising from insurance and reinsurance contracts and financial instruments was as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n \n Amounts in EUR million | \n \n \n EUR | \n \n \n GBP | \n \n \n USD | \n \n \n Other | \n \n \n Total | \n \n \n EUR | \n \n \n GBP | \n \n \n USD | \n \n \n Other | \n \n \n Total | \n
| \n \n Financial instruments - assets | \n \n \n 729 | \n \n \n 1,588 | \n \n \n 72,942 | \n \n \n 819 | \n \n \n 76,078 | \n \n \n 722 | \n \n \n 1,713 | \n \n \n 70,557 | \n \n \n 928 | \n \n \n 73,921 | \n
| \n \n Financial instruments - liabilities | \n \n \n 2,823 | \n \n \n 51,034 | \n \n \n 44,925 | \n \n \n - | \n \n \n 98,783 | \n \n \n 2,823 | \n \n \n 40,242 | \n \n \n 38,387 | \n \n \n - | \n \n \n 81,452 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance and reinsurance contract - assets | \n \n \n 7 | \n \n \n 3 | \n \n \n 16,090 | \n \n \n 46 | \n \n \n 16,147 | \n \n \n 7 | \n \n \n 2 | \n \n \n 16,744 | \n \n \n 39 | \n \n \n 16,793 | \n
| \n \n Insurance and reinsurance contract - liabilities | \n \n \n 720 | \n \n \n 66,675 | \n \n \n 137,867 | \n \n \n 5,730 | \n \n \n 210,993 | \n \n \n 715 | \n \n \n 61,922 | \n \n \n 130,886 | \n \n \n 6,124 | \n \n \n 199,648 | \n
The exchange rates for the US dollar and the UK pound per euro for each of the last five year ends are presented in\u00a0the\u00a0table\u00a0below:
| \n \n Closing rates | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n \n \n 2020 | \n
| \n \n USD | \n \n \n 1.04 | \n \n \n 1.10 | \n \n \n 1.07 | \n \n \n 1.14 | \n \n \n 1.22 | \n
| \n \n GBP | \n \n \n 0.83 | \n \n \n 0.87 | \n \n \n 0.89 | \n \n \n 0.84 | \n \n \n 0.90 | \n
Aegon Group companies' foreign currency exposure from monetary assets and liabilities denominated in foreign currencies (that is, other than the entity's functional currency), is not material.
\nThe sensitivity analysis in the following table shows an estimate of the translation effect of movements in the exchange rates of functional currencies of foreign subsidiaries against the euro presentation currency of the Group's financial statements, on\u00a0net income and shareholders' equity.\u200b\u200b\u200b\u200b\u200b\u200b\u200b
| \n \n Movement of markets 1 | \n \n \n Estimated approximate effects on net income | \n \n \n Estimated approximate effects on shareholders' equity | \n
| \n \n 2024 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD currencies relative to the euro | \n \n \n 43 | \n \n \n 734 | \n
| \n \n Increase by 15% of GBP currencies relative to the euro | \n \n \n 8 | \n \n \n 264 | \n
| \n \n Increase by 15% of non-euro currencies relative to the euro | \n \n \n 72 | \n \n \n 1,126 | \n
| \n \n Decrease by 15% of USD currencies relative to the euro | \n \n \n \n \n (31) \n | \n \n \n \n \n (543) \n | \n
| \n \n Decrease by 15% of GBP currencies relative to the euro | \n \n \n \n \n (6) \n | \n \n \n \n \n (195) \n | \n
| \n \n Decrease by 15% of non-euro currencies relative to the euro | \n \n \n \n \n (53) \n | \n \n \n \n \n (832) \n | \n
| \n | \n\n | \n\n | \n
| \n \n 2023 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD currencies relative to the euro | \n \n \n \n \n (27) \n | \n \n \n 769 | \n
| \n \n Increase by 15% of GBP currencies relative to the euro | \n \n \n \n \n (2) \n | \n \n \n 264 | \n
| \n \n Increase by 15% of non-euro currencies relative to the euro | \n \n \n \n \n (49) \n | \n \n \n 1,145 | \n
| \n \n Decrease by 15% of USD currencies relative to the euro | \n \n \n 20 | \n \n \n \n \n (569) \n | \n
| \n \n Decrease by 15% of GBP currencies relative to the euro | \n \n \n 2 | \n \n \n \n \n (195) \n | \n
| \n \n Decrease by 15% of non-euro currencies relative to the euro | \n \n \n 36 | \n \n \n \n \n (847) \n | \n
Liquidity risk is inherent in much of Aegon's business. Each asset purchased and liability incurred has its own liquidity characteristics. Some liabilities are surrenderable while some assets, such as privately placed loans, mortgage loans, real\u00a0estate, and limited partnership interests, have low liquidity. If Aegon requires significant amounts of cash on short notice in\u00a0excess of normal cash requirements and existing credit facilities, it may have difficulty selling these investments at attractive prices or in a timely manner. Liquidity risk is also affected by the use of collateralized financial derivatives to mitigate other risks.
Aegon operates a Liquidity Risk Policy under which country units are obliged to maintain sufficient levels of highly liquid assets to meet cash demands by policyholders and account holders over the next two years. Potential cash demands are assessed under a stress scenario including spikes in disintermediation risk due to rising interest rates and concerns over Aegon's financial strength due to multiple downgrades of the Group's credit rating. At the same time, the liquidity of assets other than cash and government issues is assumed to be severely impaired for an extended period of time. All legal entities and Aegon\u00a0Group must maintain sufficient liquidity to meet all cash needs under this extreme scenario.
Aegon held EUR 16,291 million of investments in cash, money market products and government bonds that are readily saleable or redeemable on demand (2023: EUR 19,399 million, exclude the investments of disposal group). The\u00a0Group expects to meet its obligations, even in a stressed liquidity event, from operating cash flows and the proceeds of maturing assets as well as these highly liquid assets. Further, the Group has access to back-up credit facilities, as disclosed in\u00a0note 31 Borrowings, amounting to EUR 1,544 million which were unused at the end of the reporting period (2023:\u00a0EUR 2,623 million).
The maturity analysis below shows the remaining contractual maturities of each category of financial liabilities (including\u00a0coupon interest). When the counterparty has a choice of when an amount is paid,\u00a0 the liability is included on\u00a0the\u00a0basis\u00a0of the earliest date on which it can be required to be paid. Financial liabilities that can be required to be\u00a0paid on\u00a0demand without any delay are reported in the category \"On demand.\" If there is a notice period, it has been assumed that notice is\u00a0given immediately, and the repayment has been presented at the earliest date after the end of the notice period. When the amount payable is not fixed, the amount reported is determined by reference to the conditions existing at the reporting date. For\u00a0example, when the amount payable varies with changes in an index, the amount disclosed may be based on the level of the\u00a0index at the reporting date.
To manage the liquidity risk arising from financial liabilities, Aegon holds liquid assets comprising cash and cash equivalents and investment grade investment securities for which there is an active and liquid market. These assets can be readily sold to\u00a0meet liquidity requirements. For this reason, Aegon believes that it is not necessary to disclose a maturity analysis in\u00a0respect of these assets to enable users to evaluate the nature and extent of liquidity risk.
Aegon's liquidity management is based on expected claims and benefit payments rather than on the contractual maturities. The projected cash benefit payments in the table below (maturity analysis - insurance and reinsurance contracts) are based on management's best estimates of the expected gross benefits and expenses, partially offset by the expected gross premiums, fees and charges relating to the existing business in force. Estimated cash benefit payments are based on mortality, morbidity and lapse assumptions based on Aegon's historical experience, modified for recently observed trends. Actual payment obligations may differ if experience varies from these assumptions. The cash benefit payments are presented on an undiscounted basis and are before the deduction of tax and before reinsurance.
For maturity information on other obligations, please see note 39 Commitments and contingencies.
\nThe following tables provides a maturity analysis of Aegon\u2019s insurance and reinsurance contracts, which reflects the dates on\u00a0which the cash flows are expected to occur. The cash flows presented below represent the undiscounted best estimate liability for the relevant periods.
| \n \n \n \n Undiscounted best estimate liability (i.e. Remaining contractual undiscounted net cash flows) \n | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 10,086 | \n \n \n 9,874 | \n \n \n 9,554 | \n \n \n 8,886 | \n \n \n 8,689 | \n \n \n 156,595 | \n \n \n 203,683 | \n
| \n \n - Without direct participation contracts | \n \n \n 10,827 | \n \n \n 10,448 | \n \n \n 9,924 | \n \n \n 9,223 | \n \n \n 8,836 | \n \n \n 136,030 | \n \n \n 185,290 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 1,880 | \n \n \n 1,964 | \n \n \n 1,911 | \n \n \n 1,688 | \n \n \n 1,681 | \n \n \n 23,816 | \n \n \n 32,940 | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n 20 | \n \n \n 21 | \n \n \n 20 | \n \n \n 20 | \n \n \n 20 | \n \n \n 827 | \n \n \n 928 | \n
| \n \n Total | \n \n \n 22,814 | \n \n \n 22,307 | \n \n \n 21,408 | \n \n \n 19,818 | \n \n \n 19,226 | \n \n \n 317,268 | \n \n \n 422,841 | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 8,737 | \n \n \n 8,287 | \n \n \n 8,186 | \n \n \n 7,823 | \n \n \n 7,187 | \n \n \n 127,351 | \n \n \n 167,571 | \n
| \n \n - Without direct participation contracts | \n \n \n 9,105 | \n \n \n 8,651 | \n \n \n 8,041 | \n \n \n 7,541 | \n \n \n 6,960 | \n \n \n 103,939 | \n \n \n 144,237 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 1,717 | \n \n \n 1,637 | \n \n \n 1,788 | \n \n \n 1,732 | \n \n \n 1,511 | \n \n \n 21,407 | \n \n \n 29,793 | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n 46 | \n \n \n 43 | \n \n \n 41 | \n \n \n 39 | \n \n \n 39 | \n \n \n 1,370 | \n \n \n 1,578 | \n
| \n \n Total | \n \n \n 19,605 | \n \n \n 18,618 | \n \n \n 18,056 | \n \n \n 17,136 | \n \n \n 15,698 | \n \n \n 254,067 | \n \n \n 343,179 | \n
| \n \n Expected release of risk adjustment | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 31 | \n \n \n 30 | \n \n \n 27 | \n \n \n 27 | \n \n \n 26 | \n \n \n 395 | \n \n \n 535 | \n
| \n \n - Without direct participation contracts | \n \n \n 53 | \n \n \n 48 | \n \n \n 45 | \n \n \n 44 | \n \n \n 45 | \n \n \n 2,525 | \n \n \n 2,760 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 10 | \n \n \n 9 | \n \n \n 7 | \n \n \n 8 | \n \n \n 8 | \n \n \n 71 | \n \n \n 112 | \n
| \n \n - Without direct participation contracts | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n \n \n (15) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (299) \n | \n \n \n \n \n (361) \n | \n
| \n \n Total | \n \n \n 79 | \n \n \n 74 | \n \n \n 67 | \n \n \n 68 | \n \n \n 68 | \n \n \n 2,691 | \n \n \n 3,047 | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 30 | \n \n \n 35 | \n \n \n 32 | \n \n \n 29 | \n \n \n 29 | \n \n \n 413 | \n \n \n 568 | \n
| \n \n - Without direct participation contracts | \n \n \n 72 | \n \n \n 63 | \n \n \n 60 | \n \n \n 57 | \n \n \n 58 | \n \n \n 2,373 | \n \n \n 2,683 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 9 | \n \n \n 12 | \n \n \n 10 | \n \n \n 8 | \n \n \n 9 | \n \n \n 81 | \n \n \n 128 | \n
| \n \n - Without direct participation contracts | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n \n \n (12) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (278) \n | \n \n \n \n \n (332) \n | \n
| \n \n Total | \n \n \n 98 | \n \n \n 99 | \n \n \n 92 | \n \n \n 85 | \n \n \n 85 | \n \n \n 2,589 | \n \n \n 3,047 | \n
Most insurance products and investment contracts with discretionary participating features of Aegon contain investment related or investment return services, where policyholders are able to surrender or early terminate their contracts to receive their current account value net of contractual penalties after a specific notional period. The current account value reflects the fair value of underlying investments. Main product types where such demand features exist are permanent life insurance products and annuities issued in the Americas, and unit-linked contracts issued in Europe.
\nThe following table (maturity analysis - financial instruments) details the Group's liquidity analysis for its derivative financial instruments, based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on\u00a0a\u00a0net\u00a0basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement.
| \n \n \n \n Maturity analysis \u2013 gross undiscounted contractual cash flows (for non-derivatives) \n | \n \n \n On demand | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Trust pass-through securities | \n \n \n - | \n \n \n 10 | \n \n \n 94 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 72 | \n \n \n 187 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 88 | \n \n \n 88 | \n \n \n 88 | \n \n \n 67 | \n \n \n 46 | \n \n \n 2,577 | \n \n \n 2,954 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 1,155 | \n \n \n 588 | \n \n \n 805 | \n \n \n 51 | \n \n \n 51 | \n \n \n 1,112 | \n \n \n 3,762 | \n
| \n \n Investment contracts | \n \n \n 39,959 | \n \n \n 50,922 | \n \n \n 9 | \n \n \n 118 | \n \n \n 24 | \n \n \n 4 | \n \n \n 60 | \n \n \n 91,095 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 37 | \n \n \n 30 | \n \n \n 27 | \n \n \n 25 | \n \n \n 21 | \n \n \n 123 | \n \n \n 261 | \n
| \n \n Other financial liabilities | \n \n \n 3,419 | \n \n \n 856 | \n \n \n 27 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4,307 | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Trust pass-through securities | \n \n \n - | \n \n \n 9 | \n \n \n 9 | \n \n \n 88 | \n \n \n 3 | \n \n \n 3 | \n \n \n 71 | \n \n \n 184 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 111 | \n \n \n 83 | \n \n \n 83 | \n \n \n 83 | \n \n \n 63 | \n \n \n 3,158 | \n \n \n 3,579 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 123 | \n \n \n 1,057 | \n \n \n 726 | \n \n \n 48 | \n \n \n 48 | \n \n \n 1,140 | \n \n \n 3,143 | \n
| \n \n Investment contracts | \n \n \n 34,464 | \n \n \n 40,059 | \n \n \n 11 | \n \n \n 8 | \n \n \n 110 | \n \n \n 23 | \n \n \n 74 | \n \n \n 74,749 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 34 | \n \n \n 29 | \n \n \n 24 | \n \n \n 21 | \n \n \n 18 | \n \n \n 114 | \n \n \n 240 | \n
| \n \n Other financial liabilities | \n \n \n 4,582 | \n \n \n 930 | \n \n \n 52 | \n \n \n 7 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 5,575 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n \n Maturity analysis relating to derivatives1 | \n \n \n On demand | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n Gross settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 1,301 | \n \n \n 182 | \n \n \n 218 | \n \n \n 153 | \n \n \n 196 | \n \n \n 2,603 | \n \n \n 4,653 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (1,241) \n | \n \n \n \n \n (135) \n | \n \n \n \n \n (191) \n | \n \n \n \n \n (134) \n | \n \n \n \n \n (194) \n | \n \n \n \n \n (2,450) \n | \n \n \n \n \n (4,345) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 582 | \n \n \n 425 | \n \n \n 380 | \n \n \n 323 | \n \n \n 286 | \n \n \n 6,587 | \n \n \n 8,583 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (475) \n | \n \n \n \n \n (360) \n | \n \n \n \n \n (323) \n | \n \n \n \n \n (259) \n | \n \n \n \n \n (246) \n | \n \n \n \n \n (11,644) \n | \n \n \n \n \n (13,308) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n \n Maturity analysis relating to derivatives1 | \n \n \n On demand | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n Gross settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 9,757 | \n \n \n 170 | \n \n \n 171 | \n \n \n 202 | \n \n \n 145 | \n \n \n 2,560 | \n \n \n 13,004 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (9,710) \n | \n \n \n \n \n (121) \n | \n \n \n \n \n (134) \n | \n \n \n \n \n (191) \n | \n \n \n \n \n (134) \n | \n \n \n \n \n (2,458) \n | \n \n \n \n \n (12,748) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 282 | \n \n \n 253 | \n \n \n 260 | \n \n \n 286 | \n \n \n 341 | \n \n \n 7,509 | \n \n \n 8,930 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (560) \n | \n \n \n \n \n (224) \n | \n \n \n \n \n (244) \n | \n \n \n \n \n (266) \n | \n \n \n \n \n (271) \n | \n \n \n \n \n (12,248) \n | \n \n \n \n \n (13,813) \n | \n
Insurance risks are described in note 29.4 Underwriting risk for risk exposures arising from contracts within the scope of\u00a0IFRS\u00a017. Financial risks typically include, but are not limited to, credit risk,\u00a0market risk and\u00a0 liquidity risk.
As an insurance group, Aegon is exposed to a variety of risks. Aegon's largest exposures are to changes in financial markets (e.g. foreign currency, interest rate, credit and equity market risks) that affect the value of the investments, liabilities from products that Aegon sells. Other risks include insurance related risks, such as changes in mortality, morbidity, bond credit spread and liquidity premium, which are discussed in note 29 Insurance contracts. Aegon manages risk at local level where business is transacted, based on principles and policies established at the Group level. Aegon's integrated approach to risk\u00a0management involves similar measurement of risk and scope of risk coverage to allow for aggregation of the Group's risk\u00a0position.
To manage the risk from changes in financial markets, Aegon\u2019s products are priced using a market-consistent framework and\u00a0comprehensive asset liability management (ALM) programs are implemented to ensure that the assets backing policyholder benefits are invested prudently over the long term. A range of ALM techniques are used across the Group. These\u00a0range in terms of sophistication and complexity from cash-flow matching (for traditional fixed annuities) to duration matching (for the Universal Life range of products) to derivative-based semi-static and dynamic hedges (to match variable annuities and indexed universal life.).
To manage its risk exposure, Aegon has risk policies in place. Many of these policies are group-wide while others are specific to the unique situation of local businesses. For ALM specifically, the Enterprise Risk Management (ERM) framework includes several risk policies that govern ALM strategies, such as the Investment and Counterparty Risk Policy (ICRP). The ICRP governs the management of investment risks associated with credit, equity, property, alternative asset classes, interest rate and currency risk in addition to option markets, implied volatility risk, interest rate options and swaptions. As well as product-level ALM programs, subsidiary businesses are required by the ICRP to maintain overarching entity-level ALM strategies that set the direction and limits for the aggregated product-level programs. Significant or complex ALM strategies are approved at\u00a0group level, and all programs are subject to Group Risk oversight.
Together with the ICRP, which guides ALM strategy, several other ERM policies govern concentration risk, liquidity risk, use\u00a0of\u00a0derivatives and securities lending and repos. As Aegon uses derivatives extensively, collateral calls can be significant depending on market circumstances. Liquidity is managed at legal entity level in the first instance with central coordination by\u00a0Aegon\u00a0Ltd. Aegon US may use external market solutions to match projected liquidity requirements with funding.
Next to guidance, the Group level policies also provide limits to Aegon's exposure to major risks such as equity, interest rates, credit, and currency. The limits in these policies in aggregate remain within Aegon's overall tolerance for risk and the Group's financial resources. Operating within this policy framework, Aegon employs risk management programs including ALM processes and models and hedging programs (which are largely conducted via the use of financial derivative instruments). These risk management programs are in place in each country unit and are not only used to manage risk in each unit but are also part of the Aegon's overall risk strategy.
Aegon operates a Derivative Use Policy to govern its use of derivatives. This policy establishes the control, authorization, execution and monitoring requirements of the usage of such instruments. In addition, the policy stipulates necessary mitigation of credit risk created through derivatives management tools. For derivatives, counterparty credit risk is normally mitigated by requirements to post collateral via credit support annex agreements or through a central clearing house.
As part of its risk management programs, Aegon takes inventory of its current risk position across risk categories. Aegon\u00a0also\u00a0measures the sensitivity of net result and shareholders' equity under both deterministic and stochastic scenarios. Management uses the insight gained through these \"what if?\" scenarios to manage the Group's risk exposure and capital position. The models, scenarios and assumptions used are reviewed regularly and updated as necessary.
Results of Aegon's sensitivity analyses are presented throughout this section to show the estimated sensitivity of CSM, net\u00a0result and shareholders' equity to various scenarios. For each type of market risk, the analysis shows how net result and shareholders' equity would have been affected by changes in the relevant risk variable.\u00a0In case of insurance contracts, changes in assumptions could have immediate impact on net result, OCI and on CSM, depending on the measurement model. For each sensitivity test, the impact of a reasonably possible change in a single factor is shown. Management action is taken into account to the extent that it is part of Aegon's regular policies and procedures, such as established hedging programs. However, incidental management actions that would require a change in policies and procedures are not considered.
Each sensitivity analysis reflects the extent to which the shock tested would affect management's critical accounting estimates and judgment in applying Aegon's accounting policies. Market-consistent assumptions underlying the measurement of non-listed assets and liabilities are adjusted to reflect the shock tested. The shock may also affect the measurement of assets and liabilities based on assumptions that are not observable in the market. For example, a shock in interest rates may lead to increased expected credit losses on debt investments. Although management's short-term assumptions may change if there is a reasonably possible change in a risk factor, long-term assumptions will generally not be revised unless there is evidence that the movement is permanent. This fact is reflected in the sensitivity analyses.
The sensitivities do not reflect what the net result for the period would have been if risk variables had been different because the analysis is based on the exposures in existence at the reporting date rather than on those that actually occurred during the year. Nor are the results of the sensitivities intended to be an accurate prediction of Aegon's future shareholders' equity or\u00a0earnings. The analysis does not take into account the impact of future new business, which is an important component of Aegon's future earnings. It also does not consider all methods available to management to respond to changes in the financial environment, such as changing investment portfolio allocations or adjusting premiums and crediting rates. Furthermore, the\u00a0results of the analyses cannot be extrapolated or interpolated for wider variations since effects do not tend to be\u00a0linear.
Concentration risk for financial risks is measured and managed at the following levels:
Concentration per risk type: Risk exposures are measured per risk type as part of Aegon\u2019s internal economic framework. A\u00a0risk 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\u00a0the\u00a0Counterparty Name Limit Policy; and
Concentration per sector, geography and asset class: Aegon\u2019s 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.
Moreover, the concentration of financial risks is measured in Aegon's business planning cycle. As part of business planning, the\u00a0resilience of Aegon's business strategy is tested in several extreme event scenarios. In the Adverse Financial scenario, financial markets are stressed without assuming diversification across different market factors. Within the projection certain management actions may be implemented when management deems this necessary.
Aegon's significant financial risks and related financial information are explained in the order as follows:
Credit risk (note 4.2 Credit risk)
Market risk (note 4.3 Market risk)
\nEquity market risk and other investment risks \t\t
Interest rate risk \t\t
Currency exchange risk \t \t
Liquidity risk (note 4.4 Liquidity risk)
Certain information in this note is presented per segment, please see note 5 Segment information for the definition of\u00a0Aegon's\u00a0segments.
\nCredit risk is the risk of financial loss to Aegon if a counterparty to a reinsurance contract or financial instrument fails to meet its contractual obligations; the risk of economic loss due to the deterioration in the financial condition of counterparties, either through fair value losses on traded securities or through defaults on traded securities, loans and mortgages.
Aegon implemented policies and procedures to govern credit limits and processes to manage credit risk, concentration risk and counterparty risk with regards to all the Group\u2019s material businesses with credit exposures in scope, including bonds, loans, cash and equivalents, collateralized assets, reinsurance assets, and assets measured at fair value. The Group uses risk gradings aligned with the major credit rating agencies, and in the case of specific asset portfolios such as residential mortgage loans implements internal risk gradings that reflect its assessment of the probability of default of individual counterparties.\u00a0
The credit grades are calibrated such that the risk of default increases exponentially with each increase in risk grade. For\u00a0example, this means that the difference in the probability of default (PD) between the AAA and A rating grades is lower than the difference in the PD between the BBB and B rating grade.\u00a0
\nAs premiums and deposits are received, these funds are invested to pay for future policyholder obligations. For assets backing insurance liabilities measured under the general model and the premium allocated approach, as well as other \"free\" assets, Aegon typically bears the risk for investment performance which is equal to the return of principal and interest.
Aegon\u00a0is exposed to credit risk on its fixed-income portfolio (debt securities, mortgages and private placements), over-the-counter derivatives and reinsurance contracts. Some issuers have defaulted on their financial obligations for various reasons, including bankruptcy, lack of liquidity, downturns in the economy, downturns in real estate values, operational failure and fraud. During financial downturns, Aegon can incur defaults or other reductions in the value of these securities and loans, which could have a materially adverse effect on Aegon\u2019s business, results of operations and financial condition.
The estimates of best estimate liability for (re)insurance contracts assets represent Aegon\u2019s maximum exposure to credit risk from these assets. Please see the cash flow information in note 29\u00a0Insurance contracts and reinsurance contracts held.
The following table contains an analysis of Aegon\u2019s maximum credit risk exposure from financial assets.
Please\u00a0see\u00a0note\u00a039 Commitments and contingencies\u00a0and 40 Transfers of financial assets for further information on capital commitments and contingencies and on collateral given, which may expose the Group to credit risk.
| \n \n 2024 | \n \n \n Maximum exposure to credit risk | \n \n \n Cash | \n \n \n Securities | \n \n \n Letters of credit / guaran- | \n \n \n Real estate property | \n \n \n Master netting agree- | \n \n \n Other | \n \n \n Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 60,890 | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n - | \n \n \n 60,829 | \n
| \n \n Money market and other short-term investments | \n \n \n 6,071 | \n \n \n - | \n \n \n 324 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 324 | \n \n \n 20 | \n \n \n 5,767 | \n
| \n \n Loans | \n \n \n 10,798 | \n \n \n 51 | \n \n \n - | \n \n \n 20 | \n \n \n 23,694 | \n \n \n - | \n \n \n - | \n \n \n 23,766 | \n \n \n 12,982 | \n \n \n 14 | \n
| \n \n Unconsolidated investment funds | \n \n \n 192,775 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 192,775 | \n
| \n \n Deposits with financial institutes | \n \n \n 2,063 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,063 | \n
| \n \n Other investments | \n \n \n 5,207 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,207 | \n
| \n \n Derivative assets | \n \n \n 771 | \n \n \n 220 | \n \n \n 713 | \n \n \n - | \n \n \n - | \n \n \n 171 | \n \n \n - | \n \n \n 1,104 | \n \n \n 461 | \n \n \n 128 | \n
| \n \n Reinsurance assets | \n \n \n 16,021 | \n \n \n - | \n \n \n 14,141 | \n \n \n 732 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 14,872 | \n \n \n - | \n \n \n 1,149 | \n
| \n \n On December 31 | \n \n \n 294,597 | \n \n \n 271 | \n \n \n 15,177 | \n \n \n 813 | \n \n \n 23,694 | \n \n \n 171 | \n \n \n - | \n \n \n 40,127 | \n \n \n 13,462 | \n \n \n 267,932 | \n
| \n \n 2023 | \n \n \n Maximum exposure to credit risk | \n \n \n Cash | \n \n \n Securities | \n \n \n Letters of credit / guaran- | \n \n \n Real estate property | \n \n \n Master netting agree- | \n \n \n Other | \n \n \n Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 55,811 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n 55,718 | \n
| \n \n Money market and other short-term investments | \n \n \n 8,695 | \n \n \n - | \n \n \n 442 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 442 | \n \n \n 24 | \n \n \n 8,277 | \n
| \n \n Loans | \n \n \n 10,183 | \n \n \n 31 | \n \n \n - | \n \n \n 20 | \n \n \n 23,711 | \n \n \n - | \n \n \n - | \n \n \n 23,762 | \n \n \n 13,579 | \n \n \n - | \n
| \n \n Unconsolidated investment funds | \n \n \n 167,411 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 167,411 | \n
| \n \n Deposits with financial institutes | \n \n \n 2,289 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,289 | \n
| \n \n Other investments | \n \n \n 5,040 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,040 | \n
| \n \n Derivative assets | \n \n \n 1,429 | \n \n \n 832 | \n \n \n 669 | \n \n \n - | \n \n \n - | \n \n \n 373 | \n \n \n - | \n \n \n 1,875 | \n \n \n 550 | \n \n \n 104 | \n
| \n \n Reinsurance assets | \n \n \n 16,608 | \n \n \n - | \n \n \n 13,416 | \n \n \n 82 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 13,498 | \n \n \n - | \n \n \n 3,110 | \n
| \n \n On December 31 | \n \n \n 267,465 | \n \n \n 864 | \n \n \n 14,528 | \n \n \n 194 | \n \n \n 23,711 | \n \n \n 373 | \n \n \n - | \n \n \n 39,669 | \n \n \n 14,153 | \n \n \n 241,949 | \n
Several bonds in Aegon's Americas' portfolio are guaranteed by monoline insurance companies. This is shown in the table above in\u00a0the column Letters of credit / guarantees.
\nThe collateral reported for the money market and short-term investments are related to tri-party repurchase agreements (repos). Within tri-party repos, Aegon invests under short-term reverse repurchase agreements and the counterparty posts collateral to a third party custodian. The collateral posted is typically high-quality, short-term securities and is only accessible for or available to Aegon in the event the counterparty defaults.
The following table contains an analysis of Aegon\u2019s credit risk exposure for debt instruments for which an ECL allowance is\u00a0recognized. See note 4.2.6 Expected credit loss for a more detailed description of ECL measurement. All asset categories not presented here are\u00a0determined to have non-material credit risk or to be of short-term nature (cash and cash equivalents, other receivables). The\u00a0gross carrying amount of financial assets below also represents Aegon\u2019s maximum exposure to credit risk on these assets.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n\n \n ECL staging | \n \n | \n\n | \n||||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Financial assets | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n AAA | \n \n \n 3,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,295 | \n \n \n 2,961 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,961 | \n
| \n \n AA | \n \n \n 9,100 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 9,101 | \n \n \n 9,217 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 9,219 | \n
| \n \n A | \n \n \n 19,443 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19,443 | \n \n \n 18,410 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 18,411 | \n
| \n \n BBB | \n \n \n 20,724 | \n \n \n 7 | \n \n \n - | \n \n \n 1 | \n \n \n 20,732 | \n \n \n 17,534 | \n \n \n 11 | \n \n \n - | \n \n \n 1 | \n \n \n 17,547 | \n
| \n \n BB | \n \n \n 949 | \n \n \n 157 | \n \n \n - | \n \n \n - | \n \n \n 1,106 | \n \n \n 899 | \n \n \n 136 | \n \n \n - | \n \n \n - | \n \n \n 1,035 | \n
| \n \n B | \n \n \n 361 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 456 | \n \n \n 431 | \n \n \n 120 | \n \n \n 3 | \n \n \n - | \n \n \n 554 | \n
| \n \n CCC and lower | \n \n \n 85 | \n \n \n 79 | \n \n \n 289 | \n \n \n 91 | \n \n \n 544 | \n \n \n 120 | \n \n \n 91 | \n \n \n 319 | \n \n \n 99 | \n \n \n 629 | \n
| \n \n Net carrying amount | \n \n \n 53,957 | \n \n \n 337 | \n \n \n 291 | \n \n \n 92 | \n \n \n 54,677 | \n \n \n 49,571 | \n \n \n 358 | \n \n \n 325 | \n \n \n 100 | \n \n \n 50,354 | \n
| \n \n Expected credit loss | \n \n \n \n \n (187) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
The real estate collateral for mortgages includes both residential and commercial properties. The collateral for commercial mortgage loans in Aegon Americas is measured at fair value. At a minimum on an annual basis, a fair value is estimated for each individual real estate property that has been pledged as collateral. When a loan is originally provided, an external appraisal is obtained to estimate the value of the property. In subsequent years, the value is typically estimated internally using various professionally accepted valuation methodologies. Internal appraisals are performed by qualified, professionally accredited personnel. International valuation standards are used, and the most significant assumptions made during the valuation of real estate are the current cost of reproducing or replacing the property, the value that the property's net earning power will support, and the value indicated by recent sales of comparable properties. Valuations are primarily supported by market evidence.\u00a0
Cash collateral for mortgage loans includes the savings that have been received to redeem the underlying mortgage loans at\u00a0redemption date. These savings are part of the credit side of the statement of financial position but reduce the credit risk for\u00a0the mortgage loan as a whole.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n\n \n ECL staging | \n \n | \n\n | \n||||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans at | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Internal grade 1 | \n \n \n 977 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 1,013 | \n \n \n 947 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 947 | \n
| \n \n Internal grade 2 | \n \n \n 4,410 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n \n \n 3,929 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 3,930 | \n
| \n \n Internal grade 3 | \n \n \n 4,539 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 4,546 | \n \n \n 4,460 | \n \n \n 24 | \n \n \n - | \n \n \n - | \n \n \n 4,485 | \n
| \n \n Internal grade 4 | \n \n \n 644 | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 654 | \n \n \n 778 | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 785 | \n
| \n \n Internal grade 5 | \n \n \n 4 | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 81 | \n \n \n 33 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 35 | \n
| \n \n Internal grade 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Internal grade 7 or lower | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Gross carrying amount | \n \n \n 10,573 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,183 | \n
| \n \n Expected credit loss | \n \n \n \n \n (38) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n \n \n (24) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Total | \n \n \n 10,535 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n \n \n 10,123 | \n \n \n 33 | \n \n \n - | \n \n \n - | \n \n \n 10,156 | \n
As significant portion of instruments have been designated as FVPL. On December 31, 2024, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 1,488 million (December 2023: EUR\u00a01,736 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following changes in fair value have been recognized for these investments:
| \n | \n\n \n 2024 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \n
| \n | \n\n \n 2023 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 46 | \n \n \n \n \n (1) \n | \n \n \n 45 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n 20 | \n \n \n - | \n \n \n 20 | \n
The change in fair value attributable to changes in credit risk is determined as the total amount of the change in fair value that is not attributable to changes in the observable benchmark interest rate or in other market rates. This approach provides a\u00a0reasonable approximation of changes attributable to credit risk because fixed income securities valuation is mainly driven by two factors \u2013 interest rates and credit spreads, and the fair value change due to credit risk can therefore be estimated by removing impacts from non-credit related factors.
\nThe master netting agreements column in the table relates to derivative liability positions that are used in Aegon's credit risk management. The offset in the master netting agreements column includes balances where there is a legally enforceable right of offset, but no intention to settle these balances on a net basis under normal circumstances. As a result, there is a net exposure for credit risk management purposes. However, as there is no intention to settle these balances on a net basis, they\u00a0do not qualify for net presentation for accounting purposes.
\nThe collateral related to the reinsurance assets includes assets in trust that are held by the reinsurer for the benefit of Aegon. The assets in trust can be accessed to pay policyholder benefits in the event the reinsurers fail to perform under the terms of their contract. Further information on the related reinsurance transactions is included in note 29 Insurance contracts.
\nAegon employs a range of policies and practices to mitigate credit risk and the most common of these is accepting collateral\u00a0for funds advanced. The Group has internal policies on the acceptability of specific classes of collateral or credit\u00a0risk mitigation.\u00a0
\nOn December 31, 2024, the Group held no collateral that was obtained during the year (EUR 0 in 2023) by taking\u00a0possession of collateral held as security against receivables. The Group\u2019s policy is to pursue the timely realization of\u00a0the collateral in an orderly manner. Aegon does not generally use the non-cash collateral for its own operations.
\nAegon manages credit risk exposure by individual counterparty, sector and asset class, including cash positions. Normally,\u00a0Aegon mitigates credit risk in derivative contracts by entering into credit support agreement, where practical, and in ISDA master netting agreements for most of Aegon's legal entities to facilitate Aegon's right to offset credit risk exposure.
The main counterparties to these transactions are investment banks which are typically rated \"A\" or higher. The credit support agreement will normally dictate the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of derivative trades, comprised mostly of interest rate swaps, equity swaps, currency swaps and credit swaps. Collateral received is mainly cash (USD\u00a0and EUR). The credit support agreements that outline the acceptable collateral require high-quality instruments to be posted. Over\u00a0the last three years, there was no default with any derivatives counterparty. The credit risk associated with financial assets subject to a master netting agreement is eliminated only to the extent that financial liabilities due to the same counterparty will be settled after the assets are realized. Eligible derivative transactions are traded via Central Clearing Houses as required by EMIR and the Dodd-Frank act. Credit risk in these transactions is mitigated through posting of initial and\u00a0variation margins.
Aegon may also mitigate credit risk in reinsurance contracts by including downgrade clauses that allow the recapture of business, retaining ownership of assets required to support liabilities ceded or by requiring the reinsurer to hold assets in\u00a0trust. For the resulting net credit risk exposure, Aegon employs deterministic and stochastic credit risk modeling in order to\u00a0assess the Group's credit risk profile, associated earnings and capital implications due to various credit loss scenarios.
Aegon operates a Credit Name Limit Policy (CNLP) under which limits are placed on the aggregate exposure that it has to any one counterparty. Limits are placed on the exposure at both group level and individual country units. The limits also vary by a\u00a0rating system, which is a composite of the main rating agencies (S&P, Moody's and Fitch) and Aegon's internal rating of the\u00a0counterparty. If an exposure exceeds the stated limit, then the exposure must be reduced to the limit for the country unit and rating category as soon as possible. Exceptions to these limits can only be made after explicit approval from Aegon's\u00a0Group Risk and Capital Committee (GRCC). The policy is reviewed regularly.
The Group offers products that cover inflation risk for policyholders. To hedge the inflation risk, the Group invests in financial instruments of which the value depends on the rate of inflation. This significantly reduces the net exposure to inflation risk.
\nAegon group level long-term counterparty exposure limits are as follows:
\n| \n \n Amounts in EUR million | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n AAA | \n \n \n 900 | \n \n \n 900 | \n
| \n \n AA | \n \n \n 900 | \n \n \n 900 | \n
| \n \n A | \n \n \n 675 | \n \n \n 675 | \n
| \n \n BBB | \n \n \n 450 | \n \n \n 450 | \n
| \n \n BB | \n \n \n 250 | \n \n \n 250 | \n
| \n \n B | \n \n \n 125 | \n \n \n 125 | \n
| \n \n CCC or lower | \n \n \n 50 | \n \n \n 50 | \n
The ratings distribution of general account portfolios of Aegon's major reporting units, excluding reinsurance assets, are\u00a0presented in the table that follows, organized by rating category and split by assets that are valued at fair value and\u00a0assets that\u00a0are valued at amortized cost. Aegon uses a composite rating based on a combination of the external ratings of S&P, Moody's,\u00a0Fitch, the National Association of Insurance Commissioners (NAIC; for the United States only), and internal ratings. The\u00a0rating used\u00a0is the lower of the external rating and the internal rating.
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 1 | \n ||||||
| \n \n Financial | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Total carrying value | \n
| \n \n AAA | \n \n \n 1,013 | \n \n \n 5,265 | \n \n \n - | \n \n \n 25 | \n \n \n - | \n \n \n 37 | \n \n \n - | \n \n \n 73 | \n \n \n 1,013 | \n \n \n 5,400 | \n \n \n 6,412 | \n
| \n \n AA | \n \n \n 4,421 | \n \n \n 9,114 | \n \n \n - | \n \n \n 525 | \n \n \n - | \n \n \n 167 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n \n \n 9,805 | \n \n \n 14,226 | \n
| \n \n A | \n \n \n 4,546 | \n \n \n 19,771 | \n \n \n - | \n \n \n 220 | \n \n \n 1 | \n \n \n 684 | \n \n \n 24 | \n \n \n - | \n \n \n 4,571 | \n \n \n 20,674 | \n \n \n 25,245 | \n
| \n \n BBB | \n \n \n 654 | \n \n \n 20,895 | \n \n \n - | \n \n \n 59 | \n \n \n - | \n \n \n 451 | \n \n \n 3 | \n \n \n - | \n \n \n 668 | \n \n \n 21,405 | \n \n \n 22,073 | \n
| \n \n BB | \n \n \n 4 | \n \n \n 1,162 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 42 | \n \n \n 1 | \n \n \n - | \n \n \n 4 | \n \n \n 1,205 | \n \n \n 1,209 | \n
| \n \n B | \n \n \n 78 | \n \n \n 487 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n 78 | \n \n \n 492 | \n \n \n 570 | \n
| \n \n CCC or lower | \n \n \n - | \n \n \n 720 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n 8 | \n \n \n - | \n \n \n 8 | \n \n \n 726 | \n \n \n 733 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 4,844 | \n \n \n - | \n \n \n 740 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 54 | \n \n \n - | \n \n \n 5,668 | \n \n \n 5,668 | \n
| \n \n Total | \n \n \n 10,715 | \n \n \n 62,258 | \n \n \n - | \n \n \n 1,569 | \n \n \n 1 | \n \n \n 1,395 | \n \n \n 36 | \n \n \n 126 | \n \n \n 10,763 | \n \n \n 65,375 | \n \n \n 76,138 | \n
| \n \n ECL on financial assets | \n \n \n \n \n (118) \n | \n \n \n \n \n (327) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n \n \n (341) \n | \n \n \n \n \n (459) \n | \n
| \n \n On December 31, 2024 | \n \n \n 10,597 | \n \n \n 62,258 | \n \n \n - | \n \n \n 1,569 | \n \n \n 1 | \n \n \n 1,395 | \n \n \n 36 | \n \n \n 126 | \n \n \n 10,645 | \n \n \n 65,375 | \n \n \n 76,020 | \n
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 1 | \n ||||||
| \n \n Financial | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Total carrying value | \n
| \n \n AAA | \n \n \n 947 | \n \n \n 6,836 | \n \n \n - | \n \n \n 38 | \n \n \n - | \n \n \n 35 | \n \n \n 52 | \n \n \n 123 | \n \n \n 998 | \n \n \n 7,033 | \n \n \n 8,031 | \n
| \n \n AA | \n \n \n 3,930 | \n \n \n 9,191 | \n \n \n - | \n \n \n 514 | \n \n \n - | \n \n \n 161 | \n \n \n - | \n \n \n - | \n \n \n 3,930 | \n \n \n 9,866 | \n \n \n 13,796 | \n
| \n \n A | \n \n \n 4,485 | \n \n \n 19,474 | \n \n \n - | \n \n \n 220 | \n \n \n 1 | \n \n \n 791 | \n \n \n - | \n \n \n - | \n \n \n 4,486 | \n \n \n 20,486 | \n \n \n 24,972 | \n
| \n \n BBB | \n \n \n 785 | \n \n \n 17,679 | \n \n \n - | \n \n \n 124 | \n \n \n - | \n \n \n 466 | \n \n \n - | \n \n \n - | \n \n \n 803 | \n \n \n 18,269 | \n \n \n 19,072 | \n
| \n \n BB | \n \n \n 33 | \n \n \n 1,084 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 41 | \n \n \n - | \n \n \n - | \n \n \n 33 | \n \n \n 1,126 | \n \n \n 1,160 | \n
| \n \n B | \n \n \n 2 | \n \n \n 570 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n 579 | \n \n \n 581 | \n
| \n \n CCC or lower | \n \n \n - | \n \n \n 986 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 992 | \n \n \n 992 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 4,444 | \n \n \n - | \n \n \n 797 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 5,286 | \n \n \n 5,286 | \n
| \n \n Total | \n \n \n 10,182 | \n \n \n 60,264 | \n \n \n - | \n \n \n 1,695 | \n \n \n 1 | \n \n \n 1,514 | \n \n \n 52 | \n \n \n 124 | \n \n \n 10,253 | \n \n \n 63,638 | \n \n \n 73,891 | \n
| \n \n ECL on financial assets | \n \n \n \n \n (26) \n | \n \n \n \n \n (228) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n \n \n \n \n (238) \n | \n \n \n \n \n (263) \n | \n
| \n \n On December 31, 2023 | \n \n \n 10,156 | \n \n \n 60,264 | \n \n \n - | \n \n \n 1,695 | \n \n \n 1 | \n \n \n 1,514 | \n \n \n 52 | \n \n \n 124 | \n \n \n 10,227 | \n \n \n 63,638 | \n \n \n 73,865 | \n
The following table shows the credit quality of the reinsurance contracts included in the statement of financial position:
| \n \n Carrying value | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n AAA | \n \n \n - | \n \n \n - | \n
| \n \n AA | \n \n \n 1,087 | \n \n \n 1,245 | \n
| \n \n A | \n \n \n 14,041 | \n \n \n 14,089 | \n
| \n \n Below A | \n \n \n 3 | \n \n \n 4 | \n
| \n \n Not rated | \n \n \n 587 | \n \n \n 662 | \n
| \n \n On December 31 | \n \n \n 15,719 | \n \n \n 16,000 | \n
The tables that follow present specific credit risk concentration information for general account financial assets.
| \n \n Credit risk concentrations \u2013 debt securities | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 1 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n \n \n Residential mortgage-backed securities (RMBSs) \n | \n \n \n 684 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 684 | \n \n \n \n \n (19) \n | \n
| \n \n \n \n Commercial mortgage-backed securities (CMBSs) \n | \n \n \n 2,469 | \n \n \n 65 | \n \n \n 47 | \n \n \n - | \n \n \n 2,582 | \n \n \n \n \n (22) \n | \n
| \n \n Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | \n \n \n 582 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 585 | \n \n \n - | \n
| \n \n ABSs \u2013 Other | \n \n \n 4,761 | \n \n \n 54 | \n \n \n 49 | \n \n \n 88 | \n \n \n 4,952 | \n \n \n \n \n (16) \n | \n
| \n \n Financial - Banking | \n \n \n 3,751 | \n \n \n 172 | \n \n \n 178 | \n \n \n - | \n \n \n 4,101 | \n \n \n \n \n (19) \n | \n
| \n \n Financial - Other | \n \n \n 10,464 | \n \n \n 24 | \n \n \n 224 | \n \n \n 46 | \n \n \n 10,758 | \n \n \n \n \n (57) \n | \n
| \n \n Capital goods and other industry | \n \n \n 3,639 | \n \n \n 24 | \n \n \n 79 | \n \n \n - | \n \n \n 3,742 | \n \n \n \n \n (31) \n | \n
| \n \n Communications & Technology | \n \n \n 4,642 | \n \n \n 4 | \n \n \n 112 | \n \n \n - | \n \n \n 4,758 | \n \n \n \n \n (58) \n | \n
| \n \n Consumer cyclical | \n \n \n 3,641 | \n \n \n 25 | \n \n \n 91 | \n \n \n - | \n \n \n 3,757 | \n \n \n \n \n (39) \n | \n
| \n \n Consumer non-cyclical | \n \n \n 5,987 | \n \n \n 49 | \n \n \n 116 | \n \n \n - | \n \n \n 6,151 | \n \n \n \n \n (31) \n | \n
| \n \n Energy | \n \n \n 2,766 | \n \n \n 27 | \n \n \n 51 | \n \n \n - | \n \n \n 2,844 | \n \n \n \n \n (13) \n | \n
| \n \n Transportation | \n \n \n 1,786 | \n \n \n - | \n \n \n 29 | \n \n \n - | \n \n \n 1,816 | \n \n \n \n \n (6) \n | \n
| \n \n Utility | \n \n \n 4,763 | \n \n \n 16 | \n \n \n 54 | \n \n \n - | \n \n \n 4,833 | \n \n \n \n \n (12) \n | \n
| \n \n Government bonds | \n \n \n 6,926 | \n \n \n 370 | \n \n \n 286 | \n \n \n 18 | \n \n \n 7,601 | \n \n \n \n \n (18) \n | \n
| \n \n On December 31, 2024 | \n \n \n 56,861 | \n \n \n 830 | \n \n \n 1,320 | \n \n \n 152 | \n \n \n 59,162 | \n \n \n \n \n (341) \n | \n
| \n \n Credit risk concentrations \u2013 debt securities | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 1 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n \n \n Residential mortgage-backed securities (RMBSs) \n | \n \n \n 933 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 933 | \n \n \n \n \n (13) \n | \n
| \n \n \n \n Commercial mortgage-backed securities (CMBSs) \n | \n \n \n 2,216 | \n \n \n 73 | \n \n \n 34 | \n \n \n - | \n \n \n 2,323 | \n \n \n \n \n (17) \n | \n
| \n \n Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | \n \n \n 557 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 560 | \n \n \n - | \n
| \n \n ABSs \u2013 Other | \n \n \n 2,905 | \n \n \n 53 | \n \n \n 28 | \n \n \n 52 | \n \n \n 3,037 | \n \n \n \n \n (9) \n | \n
| \n \n Financial - Banking | \n \n \n 3,412 | \n \n \n 173 | \n \n \n 201 | \n \n \n - | \n \n \n 3,786 | \n \n \n \n \n (14) \n | \n
| \n \n Financial - Other | \n \n \n 11,909 | \n \n \n 38 | \n \n \n 289 | \n \n \n 97 | \n \n \n 12,332 | \n \n \n \n \n (33) \n | \n
| \n \n Capital goods and other industry | \n \n \n 3,443 | \n \n \n 24 | \n \n \n 143 | \n \n \n - | \n \n \n 3,609 | \n \n \n \n \n (23) \n | \n
| \n \n Communications & Technology | \n \n \n 4,242 | \n \n \n 2 | \n \n \n 140 | \n \n \n - | \n \n \n 4,384 | \n \n \n \n \n (30) \n | \n
| \n \n Consumer cyclical | \n \n \n 3,197 | \n \n \n 29 | \n \n \n 85 | \n \n \n - | \n \n \n 3,311 | \n \n \n \n \n (20) \n | \n
| \n \n Consumer non-cyclical | \n \n \n 5,661 | \n \n \n 74 | \n \n \n 111 | \n \n \n - | \n \n \n 5,846 | \n \n \n \n \n (24) \n | \n
| \n \n Energy | \n \n \n 2,821 | \n \n \n 20 | \n \n \n 55 | \n \n \n - | \n \n \n 2,896 | \n \n \n \n \n (19) \n | \n
| \n \n Transportation | \n \n \n 1,633 | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 1,663 | \n \n \n \n \n (6) \n | \n
| \n \n Utility | \n \n \n 4,190 | \n \n \n 73 | \n \n \n 75 | \n \n \n - | \n \n \n 4,338 | \n \n \n \n \n (10) \n | \n
| \n \n Government bonds | \n \n \n 7,349 | \n \n \n 338 | \n \n \n 265 | \n \n \n 17 | \n \n \n 7,969 | \n \n \n \n \n (20) \n | \n
| \n \n On December 31, 2023 | \n \n \n 54,467 | \n \n \n 898 | \n \n \n 1,458 | \n \n \n 166 | \n \n \n 56,988 | \n \n \n \n \n (237) \n | \n
| \n \n Credit risk concentrations \u2013 Government bonds per country of risk | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n
| \n \n United States | \n \n \n 6,095 | \n \n \n - | \n \n \n 69 | \n \n \n - | \n \n \n 6,164 | \n
| \n \n Netherlands | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n \n United Kingdom | \n \n \n - | \n \n \n 316 | \n \n \n - | \n \n \n 18 | \n \n \n 334 | \n
| \n \n Austria | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n 10 | \n
| \n \n Belgium | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n \n France | \n \n \n - | \n \n \n 28 | \n \n \n 8 | \n \n \n - | \n \n \n 36 | \n
| \n \n Hungary | \n \n \n 21 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 25 | \n
| \n \n Indonesia | \n \n \n 69 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 69 | \n
| \n \n Luxembourg | \n \n \n - | \n \n \n 5 | \n \n \n 1 | \n \n \n - | \n \n \n 7 | \n
| \n \n Spain | \n \n \n - | \n \n \n - | \n \n \n 161 | \n \n \n - | \n \n \n 161 | \n
| \n \n Rest of Europe | \n \n \n 82 | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 93 | \n
| \n \n Rest of world | \n \n \n 660 | \n \n \n 20 | \n \n \n 16 | \n \n \n - | \n \n \n 695 | \n
| \n \n On December 31, 2024 | \n \n \n 6,926 | \n \n \n 370 | \n \n \n 286 | \n \n \n 18 | \n \n \n 7,601 | \n
| \n \n Credit risk concentrations \u2013 Government bonds per country of risk | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 1 | \n
| \n \n United States | \n \n \n 6,632 | \n \n \n - | \n \n \n 62 | \n \n \n - | \n \n \n 6,694 | \n
| \n \n Netherlands | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n \n United Kingdom | \n \n \n - | \n \n \n 289 | \n \n \n - | \n \n \n 17 | \n \n \n 307 | \n
| \n \n Austria | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n 10 | \n
| \n \n Belgium | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n \n France | \n \n \n - | \n \n \n 28 | \n \n \n 8 | \n \n \n - | \n \n \n 36 | \n
| \n \n Hungary | \n \n \n 20 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 24 | \n
| \n \n Indonesia | \n \n \n 71 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 71 | \n
| \n \n Luxembourg | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n \n Spain | \n \n \n - | \n \n \n - | \n \n \n 153 | \n \n \n - | \n \n \n 153 | \n
| \n \n Rest of Europe | \n \n \n 46 | \n \n \n - | \n \n \n 13 | \n \n \n - | \n \n \n 58 | \n
| \n \n Rest of world | \n \n \n 581 | \n \n \n 21 | \n \n \n 8 | \n \n \n - | \n \n \n 610 | \n
| \n \n On December 31, 2023 | \n \n \n 7,349 | \n \n \n 338 | \n \n \n 265 | \n \n \n 17 | \n \n \n 7,969 | \n
| \n \n Credit risk concentrations \u2013 Credit rating | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n Total 2024 | \n
| \n \n AAA | \n \n \n 169 | \n \n \n 434 | \n \n \n 2,888 | \n \n \n 1,892 | \n \n \n 5,383 | \n
| \n \n AA | \n \n \n 5,857 | \n \n \n 2,686 | \n \n \n 1,202 | \n \n \n - | \n \n \n 9,745 | \n
| \n \n A | \n \n \n 823 | \n \n \n 16,127 | \n \n \n 3,169 | \n \n \n - | \n \n \n 20,119 | \n
| \n \n BBB | \n \n \n 417 | \n \n \n 20,099 | \n \n \n 847 | \n \n \n - | \n \n \n 21,363 | \n
| \n \n BB | \n \n \n 265 | \n \n \n 834 | \n \n \n 99 | \n \n \n - | \n \n \n 1,198 | \n
| \n \n B | \n \n \n 53 | \n \n \n 398 | \n \n \n 94 | \n \n \n - | \n \n \n 545 | \n
| \n \n CCC or lower | \n \n \n 18 | \n \n \n 205 | \n \n \n 503 | \n \n \n - | \n \n \n 726 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 83 | \n \n \n 83 | \n
| \n \n On December 31, 2024 1 | \n \n \n 7,601 | \n \n \n 40,783 | \n \n \n 8,802 | \n \n \n 1,976 | \n \n \n 59,162 | \n
| \n \n Credit risk concentrations \u2013 Credit rating | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n Total 2023 1 | \n
| \n \n AAA | \n \n \n 166 | \n \n \n 503 | \n \n \n 2,462 | \n \n \n 3,915 | \n \n \n 7,046 | \n
| \n \n AA | \n \n \n 6,444 | \n \n \n 2,262 | \n \n \n 1,160 | \n \n \n - | \n \n \n 9,866 | \n
| \n \n A | \n \n \n 723 | \n \n \n 16,352 | \n \n \n 2,101 | \n \n \n - | \n \n \n 19,176 | \n
| \n \n BBB | \n \n \n 354 | \n \n \n 17,408 | \n \n \n 404 | \n \n \n - | \n \n \n 18,165 | \n
| \n \n BB | \n \n \n 205 | \n \n \n 838 | \n \n \n 78 | \n \n \n - | \n \n \n 1,121 | \n
| \n \n B | \n \n \n 69 | \n \n \n 496 | \n \n \n 30 | \n \n \n - | \n \n \n 596 | \n
| \n \n CCC or lower | \n \n \n 9 | \n \n \n 245 | \n \n \n 618 | \n \n \n - | \n \n \n 872 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 144 | \n \n \n 147 | \n
| \n \n On December 31, 2023 2 | \n \n \n 7,969 | \n \n \n 38,106 | \n \n \n 6,853 | \n \n \n 4,059 | \n \n \n 56,988 | \n
| \n \n Credit risk concentrations \u2013 mortgage loans | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n Agricultural | \n \n \n 47 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 47 | \n \n \n - | \n
| \n \n Apartment | \n \n \n 5,618 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,618 | \n \n \n \n \n (8) \n | \n
| \n \n Industrial | \n \n \n 474 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 474 | \n \n \n - | \n
| \n \n Office | \n \n \n 1,270 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,270 | \n \n \n \n \n (109) \n | \n
| \n \n Retail | \n \n \n 1,384 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,384 | \n \n \n \n \n (1) \n | \n
| \n \n Other commercial | \n \n \n 1,885 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1,886 | \n \n \n - | \n
| \n \n On December 31, 2024 | \n \n \n 10,679 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 10,680 | \n \n \n \n \n (118) \n | \n
| \n \n Credit risk concentrations \u2013 mortgage loans | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n Agricultural | \n \n \n 46 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 46 | \n \n \n - | \n
| \n \n Apartment | \n \n \n 5,365 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,365 | \n \n \n \n \n (10) \n | \n
| \n \n Industrial | \n \n \n 410 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 410 | \n \n \n - | \n
| \n \n Office | \n \n \n 1,300 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,300 | \n \n \n \n \n (14) \n | \n
| \n \n Retail | \n \n \n 1,372 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,372 | \n \n \n \n \n (1) \n | \n
| \n \n Other commercial | \n \n \n 1,663 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1,664 | \n \n \n - | \n
| \n \n On December 31, 2023 | \n \n \n 10,156 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 10,156 | \n \n \n \n \n (26) \n | \n
Aegon's investments in unconsolidated structured entities such as RMBSs, CMBSs, and ABSs and investment funds are presented in the line item \"Investments\" of the statement of financial position. Aegon's interests in these unconsolidated structured entities can be characterized as basic interests, Aegon does not have loans, derivatives, guarantees, or other interests related to these investments. Any existing commitments such as future purchases of interests in investment funds are disclosed in note 39 Commitments and contingencies.
For debt instruments, specifically for RMBSs, CMBSs and ABSs, the maximum exposure to loss is equal to the carrying amount which is reflected in the credit risk concentration table regarding debt securities and money market investments. To\u00a0manage credit risk Aegon invests primarily in senior notes of\u00a0RMBSs, CMBSs and ABSs. The composition of the RMBSs, CMBSs and ABSs\u00a0portfolios of Aegon are widely dispersed looking at the individual amount per entity, therefore Aegon only\u00a0has non-controlling interests in individual unconsolidated structured entities. Furthermore, these investments are not originated by Aegon.
As collateral manager of CLOs issued in Europe, to the extent that it acts as an originator-manager, Aegon is subject to risk retention requirements to hold investments in the CLOs it manages. Such risk retention is often participation in the subordinated tranches of the structure which concentrates credit risk of the underlying assets of the CLO. Aegon\u2019s maximum exposure to credit risk is the carrying amount of these investments, which is EUR 192,775 million on December 31, 2024 (2023: EUR 167,411 million).
Except for commitments as noted in note 39 Commitments and contingencies,\u00a0Aegon did not provide, nor is required to provide financial or other support to unconsolidated structured entities. Nor does Aegon have intentions to provide financial or other support to unconsolidated structured entities in which Aegon has an interest or previously had an interest.
For RMBSs, CMBSs and ABSs\u00a0in which Aegon has an interest at reporting date, the following table presents the total income received from those interests. The Investments column reflects the carrying values recognized in the statement of financial position of Aegon's interests in RMBSs, CMBSs, and ABSs.
| \n | \n\n \n Total income for the year ended December 31, 2024 | \n \n \n December 31, 2024 | \n ||
| \n | \n\n \n Interest income | \n \n \n Total gains and losses on sale of assets | \n \n \n Total | \n \n \n Investments | \n
| \n \n Residential mortgage-backed securities | \n \n \n 58 | \n \n \n \n \n (13) \n | \n \n \n 45 | \n \n \n 684 | \n
| \n \n Commercial mortgage-backed securities | \n \n \n 97 | \n \n \n 98 | \n \n \n 194 | \n \n \n 2,582 | \n
| \n \n Asset-backed securities | \n \n \n 38 | \n \n \n 12 | \n \n \n 50 | \n \n \n 585 | \n
| \n \n ABSs - Other | \n \n \n 206 | \n \n \n 58 | \n \n \n 264 | \n \n \n 4,952 | \n
| \n \n Total | \n \n \n 399 | \n \n \n 155 | \n \n \n 554 | \n \n \n 8,802 | \n
| \n | \n\n \n Total income for the year ended December 31, 2023 | \n \n \n December 31, 2023 | \n ||
| \n | \n\n \n Interest income | \n \n \n Total gains and losses on sale of assets | \n \n \n Total | \n \n \n Investments | \n
| \n \n Residential mortgage-backed securities | \n \n \n 67 | \n \n \n \n \n (15) \n | \n \n \n 52 | \n \n \n 933 | \n
| \n \n Commercial mortgage-backed securities | \n \n \n 92 | \n \n \n 12 | \n \n \n 105 | \n \n \n 2,323 | \n
| \n \n Asset-backed securities | \n \n \n 40 | \n \n \n 14 | \n \n \n 54 | \n \n \n 560 | \n
| \n \n ABSs - Other | \n \n \n 134 | \n \n \n 57 | \n \n \n 191 | \n \n \n 3,037 | \n
| \n \n Total | \n \n \n 334 | \n \n \n 68 | \n \n \n 402 | \n \n \n 6,853 | \n
The estimation of credit exposure for risk management purposes is complex and requires the use of models, as the exposure varies with changes in market conditions, expected cash flows and the passage of time. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring, of the associated loss ratios and of default correlations between counterparties. Aegon measures credit risk using Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). This is similar to the approach used for the purposes of measuring the Expected Credit Loss (ECL) under IFRS 9. See section on ECL developments in the reporting period later in this note for more details.
Losses as a result of credit risk are a natural part of investing in fixed-income securities. The amount of and compensation for\u00a0this risk are related. A significant management measure to avoid excessive credit risk is to diversify and limit exposure to\u00a0individual issuers.
\nIFRS 9 outlines a \"three-stage\" model for impairment based on relative changes in credit quality since initial recognition:
A financial instrument that is not credit-impaired on initial recognition is classified in \"Stage 1\";
If a significant increase in credit risk (\"SICR\") since initial recognition is identified, the financial instrument is moved to \"Stage\u00a02\" but is not yet deemed to be credit-impaired (see \u201cSignificant increase in credit risk\u201d for further details);
If the financial instrument is credit-impaired, the financial instrument is then moved to \"Stage 3.\"
Credit risk is continuously monitored by Aegon in all the above stages.
Financial instruments in Stage 1 have their expected credit loss (ECL) measured at an amount equal to the portion of lifetime expected credit losses that result from default events possible within the follow 12 months. Financial instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit-impaired on initial recognition. Their ECL is always measured on a\u00a0lifetime basis.\u00a0
| \n | \n\n \n Stage 1 Impaired | \n \n \n Stage 2 Under-performing | \n \n \n Stage 3 Non-performing | \n \n \n \n \n Purchased or Originated Credit Impaired (POCI) \n | \n
| \n \n ECL | \n \n \n 12 month ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n
| \n \n Provision Trigger | \n \n \n n.a. | \n \n \n Quantitative and Qualitative Triggers | \n \n \n Qualitative Triggers | \n \n \n Qualitative Triggers | \n
| \n \n Days Past Due (\"DPD\") Backstop | \n \n \n \n \n Up to date and early arrears (< 30 DPD) \n | \n \n \n \n \n > 30 DPD (rebuttable presumption) \n | \n \n \n \n \n > 90 DPD (rebuttable presumption) \n | \n \n \n n.a. | \n
| \n \n Interest Income | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on net carrying amount | \n \n \n Interest calculated on net carrying amount using a credit-adjusted effective interest rate | \n
Following this assessment, IFRS 9 requires the incorporation of multiple, forward looking macro- scenarios to drive the ECL provision.
IFRS 9 requires that the measurement of ECL represent an unbiased probability-weighted amount that is to be determined by:
Evaluating a range of possible outcomes;\u00a0
Use reasonable and supportable information available without undue cost and effort about past events;
Current conditions; and\u00a0
Forecasts of future economic conditions.
When incorporating forward looking information, consideration should be given to the relevance of the information (and\u00a0the\u00a0availability of more relevant information) for each specific financial instrument or group of financial instruments. To\u00a0the extent relevant, forward-looking information used for the measurement of ECLs it needs to be consistent with that used\u00a0for\u00a0the\u00a0assessment of a significant increase in credit risk.
Credit losses are calculated as the product of projected probability of default, loss given default and exposure at default and are discounted using an appropriate discount rate. The ECL is determined as the probability weighted discounted credit losses that are determined for different scenarios (i.e. base, positive, adverse).\u00a0
Given the need to adapt the models to the different portfolio characteristics, all ECL models have different key judgments and assumptions. As such, the below paragraphs outline the key judgements and assumptions made by the Group in addressing the key requirements on a model-by-model basis.
The Group employs different models to calculate the ECL on different asset classes.
For bonds and private placements, the Group applies a global correlation model. It provides correlations of credit quality movements across different asset classes, linked with movements in the macro economy. A global correlation model is therefore used for determining the conditional PD and LGD, given a macroeconomic scenario. Unconditional PD and LGD curves are modelled with use of different methods for sovereign debt, corporate bonds and private placements.\u00a0
For commercial mortgage loans and mortgage-backed securities, the parameters are estimated with commercial mortgage metrics that use corporate bond PD and LGD estimates further adjusted with other assumptions based on debt service coverage and loan-to-value ratios.\u00a0
The Group applies a separate model for asset-backed securities, which pools the instruments based on the underlying collateral and estimates credit loss parameters collectively. Collateralized debt (loan) obligations (CDOs and CLOs) are special types of asset-backed securities to which a different set of models are applied depending on the region of the exposure.
\nAegon considers a financial instrument to have experienced a significant increase in credit risk when one or more of the following quantitative, qualitative or backstop criteria have been met:
| \n \n Asset class | \n \n \n Quantitative criteria | \n \n \n Qualitative criteria | \n \n \n Backstop criteria | \n
| \n \n Commercial mortgages | \n \n \n Relative change in Forward-in-Time Probability of Default | \n \n \n None | \n \n \n 60 days past due backstop | \n
| \n \n Private loans | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Debt securities | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Structured finance | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n 30 days past due backstop | \n
| \n \n Deposits with financial institutions | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Loan commitments | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n | \n\n | \n
| \n \n Financial guarantees | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n | \n\n | \n
The quantitative factor(s) should indicate whether the credit risk of an instrument has increased significantly since initial recognition. When making this assessment, Aegon shall use the change in the risk of a default occurring over the expected life\u00a0of the financial instrument. Aegon uses a mix of relative and absolute thresholds:
The relative threshold measures the relative increase in credit risk since origination.\u00a0
The absolute threshold defines a stage for each rating and is mainly used when the rating at origination is not available or when an instrument is already in default.
The relative thresholds are defined in two steps:
A PD-based statistical analysis is performed to determine an optimal PD threshold that provides the best predictor for\u00a0default;
The PD-based thresholds are translated into rating-based rules, which are more intuitive and practically applicable.
These PD thresholds can be translated into rating-based thresholds using standard Moody\u2019s rating to PD mappings. The\u00a0difference between the PD at origination and the PD corresponding to the threshold determines the number of notches that the rating must drop by. For example, for a one-year-old instrument with a one year remaining maturity this gives the following result:\u00a0
\n\nPD amounts used by Aegon are grouped into ranges in below table. Each range contains the minimum and maximum of PDs on both financial and corporate assets of a 1-10 year term. As Aegon US represents the Group the best, PD amounts of Americas is presented below.
| \n \n PD range 2024 | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0001 | \n \n \n 0.0021 | \n
| \n \n AA | \n \n \n 0.0002 | \n \n \n 0.0034 | \n
| \n \n A | \n \n \n 0.0006 | \n \n \n 0.0052 | \n
| \n \n BBB | \n \n \n 0.0017 | \n \n \n 0.0079 | \n
| \n \n BB | \n \n \n 0.0048 | \n \n \n 0.0131 | \n
| \n \n B | \n \n \n 0.0120 | \n \n \n 0.0307 | \n
| \n \n CCC or lower | \n \n \n 0.0196 | \n \n \n 1.0000 | \n
| \n \n PD range 2023 | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0002 | \n \n \n 0.0024 | \n
| \n \n AA | \n \n \n 0.0003 | \n \n \n 0.0037 | \n
| \n \n A | \n \n \n 0.0007 | \n \n \n 0.0057 | \n
| \n \n BBB | \n \n \n 0.0020 | \n \n \n 0.0085 | \n
| \n \n BB | \n \n \n 0.0055 | \n \n \n 0.0085 | \n
| \n \n B | \n \n \n 0.0138 | \n \n \n 0.0308 | \n
| \n \n CCC or lower | \n \n \n 0.0205 | \n \n \n 1.0000 | \n
For debt securities, private loans, structured finance securities and deposits with financial institutions the relative change of the credit rating is used as primary indicator to assess significant increase in credit risk, for this purpose external credit ratings are used.\u00a0
\nFor debt securities, private loans, structured finance securities and deposits with financial institutions the watchlist approach is applied as an additional qualitative criterion.\u00a0 The watchlist approach means exposure of instruments on the watchlist are intensively monitored. Financial assets are added to the watchlist based on whether their relative change in fair value has surpassed a predetermined threshold:
The fair value either drops to 80% and below the (amortized) cost price and stays there for six months; or
The fair value falls by 20% over 3 months; or
The fair value falls to 60% and below the (amortized) cost price.
In relation to debt securities and private loans, where a watchlist is used to monitor credit risk, this assessment is performed at the counterparty level and on a periodic basis. The criteria used to identify SICR are monitored and reviewed periodically for\u00a0appropriateness by the Group.
\nA backstop is applied to exposures considered to have experienced a significant increase in credit risk if the borrower is more than 30 days past due on its contractual payments in the case of structured finance, and 60 days in the case of commercial mortgage loans. No backstop is applied to the other asset classes.\u00a0
Aegon has used the low credit risk exemption for debt instruments. Debt instruments that have a credit rating that is responds with \"investment grade\" (rating \"BBB\" or higher) are considered as having low credit risk. As such, external and internal credit ratings are used respectively for these assets to assess whether a significant increase in credit risk has occurred.
Low credit risk exemption is applied for staging purposes on instruments rated BBB and higher.
\nFor loan commitments and financial guarantees, Aegon defines default in the same way as for the respective loan or financial instrument to which a commitment relates or a guarantee is issued (considering the factors described above).
\nAegon assesses a financial instrument to be in default or credit-impaired using the following criteria:
| \n \n Asset class | \n \n \n Quantitative criteria | \n \n \n Qualitative criteria | \n
| \n \n Commercial mortgages | \n \n \n 90 days past due backstop | \n \n \n Foreclosure | \n
| \n | \n\n | \n\n \n Sale at material credit-related economic loss | \n
| \n \n Debt securities and private loans | \n \n \n 5 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Breach of significant covenants without reasonably supportable waiver obtained | \n
| \n | \n\n | \n\n \n Distressed restructuring taking place | \n
| \n | \n\n | \n\n \n Bankruptcy or an equivalent of an injunction for the obligor was filed | \n
| \n | \n\n | \n\n \n Obligor was classified as default internally | \n
| \n \n Deposits with financial institution | \n \n \n 5 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Breach of significant covenants without reasonably supportable waiver obtained | \n
| \n | \n\n | \n\n \n Distressed restructuring taking place | \n
| \n | \n\n | \n\n \n Bankruptcy or an equivalent of an injunction for the obligor was filed | \n
| \n | \n\n | \n\n \n Obligor was classified as default internally | \n
| \n \n Structured securities | \n \n \n 90 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Loss coverage ratio (Ratio of credit-related losses to the par value of a debt security) is below 1 | \n
| \n \n Receivables | \n \n \n 90 days past due backstop | \n \n | \n
| \n \n Loan commitments | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n \n Defined as for the respective loans to which the commitment relates | \n
| \n \n Financial guarantee contracts | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n
Distressed restructuring means material forgiveness, or postponements of principal, interest, or where relevant, fees which is likely to result in a diminished financial obligation.\u00a0
In addition to the criteria included in the table above, Aegon identifies other indicators of unlikeliness to pay, which include but are not limited to the following:
A borrower\u2019s sources of recurring income are no longer available to meet the payments of installments;
There are justified concerns about a borrower\u2019s future ability to generate stable and sufficient cash flows;
The borrower\u2019s overall leverage level has significantly increased beyond applicable limits or there are justified expectations\u00a0of such changes to leverage;
For the exposures to an individual: default of a company fully owned by a single individual where this individual provided the\u00a0institution with a personal guarantee for all obligations of a company;
Material fraud; or
Death of a client.
All the criteria above have been applied to the financial instruments held by Aegon and are consistent with the definition of default used for internal credit risk management purposes. The definition of default has been applied consistently to model the Probability of Default, Exposure at Default throughout Aegon\u2019s expected loss calculations.
An instrument is considered to no longer be in default (i.e. to have \"cured\") when it no longer meets any of the default criteria for a consecutive period of six\u00a0months and an assessment has shown the obligor is no longer unlikely to pay. This period of six months considers the likelihood of a financial instrument returning to default status after cure using different possible cure definitions.
\nThe ECL is measured on either a \"12-month basis\" (Stage 1) or \"lifetime basis\" (Stages 2 and 3), depending on whether a\u00a0significant increase in credit risk has occurred since initial recognition or whether an asset is considered to be credit-impaired.\u00a0
The expected credit losses are the discounted product of the Probability of Default, Exposure at Default, and Loss\u00a0Given\u00a0Default, defined as follows:
The PD represents the likelihood of a borrower defaulting on its financial obligation (as per \u201cDefinition of default and credit-impaired\u201d above), either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.\u00a0
EAD is based on the amounts the Group expects to be owed at the time of default.\u00a0
Loss Given Default represents Aegon\u2019s expectation of the extent of loss on a defaulted exposure. LGD varies by\u00a0type\u00a0of\u00a0counterparty, type and seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at the time of default.
The discount rate used in the ECL calculation is the original effective interest rate or an approximation thereof. The lifetime PD is calculated for a financial instrument that results in default by summing the probabilities of all future developments which end-up in the ECL. All possible future developments are enumerated and for each future development a probability is calculated by statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.\u00a0
Forward-looking economic information is included in determining the 12-month and lifetime ECL, and lifetime PD by using a\u00a0set\u00a0of\u00a0variables describing the state of the macro economy as input in the calculation of the probability of default and prepayment.
As described above, and subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the Group measures ECL considering the risk of default over the maximum contractual period (including any borrower\u2019s extension options) over which Aegon is exposed to credit risk, even if the Group considers a\u00a0longer\u00a0period.\u00a0
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of significant increase in credit risk (SICR) and the calculation of ECL both incorporate forward-looking information. Aegon has performed historical analysis and identified the key economic variables impacting credit risk and expected credit losses for each portfolio.\u00a0
These economic variables and their associated impact on the ECL and Lifetime PD vary by financial instrument. Expert judgment has also been applied in this process. Forecasts of these economic variables (the \u201cbase economic scenario\u201d) give\u00a0the best estimate view of the economy over the next five years. After five years, to project the economic variables out for the\u00a0full remaining lifetime of each instrument, a mean reversion approach has been used, which means that economic variables tend to either a long run average rate (e.g. for unemployment) or a long run average growth rate (e.g. GDP) over a period of three years. Statistical regression analysis has been performed to understand the impact changes in these macro-economic variables have had historically on default and prepayment rates.
Using the base scenario as a starting point, three macro-economic scenarios are generated by applying shocks to the macro-economic variables in a positive and negative direction, taking into account their correlation as historically observed, resulting in a positive, neutral, or negative scenario. The shocks applied correspond to the historical average deviance from the long-term mean observed in the best/worst 10% of the historically observed quarters. The ECL is calculated for each of the three scenarios, multiplied by the scenario weighting, and summed. The use of multiple economic scenarios ensures that the ECL represents the best estimate of expected credit loss and is not merely the credit loss in the most likely scenario.
As with any economic forecasts, the projections and likelihoods of occurrence are subject to a high degree of inherent uncertainty, and therefore, the actual outcomes may be significantly different to those projected. The Group considers these\u00a0forecasts to represent its best estimate of the possible outcomes.
\nThe most significant period-end assumptions used for the ECL estimate are set out below. The scenarios \u201cbase\u201d, \u201cupside\u201d, and\u00a0\u201cdownside\u201d were used for all portfolios.
| \n \n Economic variable assumptions, December 31, 2024 | \n \n | \n\n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.33 | \n \n \n 4.26 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.43 | \n \n \n 4.35 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 3.17 | \n \n \n 3.74 | \n \n \n 3.94 | \n \n \n 4.04 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.08 | \n \n \n 4.09 | \n \n \n 4.05 | \n \n \n 4.01 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.13 | \n \n \n 3.44 | \n \n \n 3.42 | \n \n \n 3.42 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.23 | \n \n \n 7.46 | \n \n \n 6.18 | \n \n \n 5.00 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 419.04 | \n \n \n 424.10 | \n \n \n 434.08 | \n \n \n 448.91 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 439.72 | \n \n \n 456.26 | \n \n \n 471.39 | \n \n \n 489.21 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 354.16 | \n \n \n 369.92 | \n \n \n 385.26 | \n \n \n 401.39 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 23,973.45 | \n \n \n 24,343.12 | \n \n \n 24,819.66 | \n \n \n 25,356.09 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,319.86 | \n \n \n 24,807.47 | \n \n \n 25,341.29 | \n \n \n 25,943.15 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,959.57 | \n \n \n 23,369.09 | \n \n \n 24,147.35 | \n \n \n 24,980.66 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 5,912.89 | \n \n \n 5,814.62 | \n \n \n 6,098.72 | \n \n \n 6,483.85 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,264.59 | \n \n \n 6,132.21 | \n \n \n 6,356.19 | \n \n \n 6,630.75 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 3,867.82 | \n \n \n 4,095.95 | \n \n \n 4,899.05 | \n \n \n 5,712.91 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions, December 31, 2023 | \n \n | \n\n \n 2024 | \n \n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.11 | \n \n \n 4.04 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.21 | \n \n \n 4.13 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 2.31 | \n \n \n 3.24 | \n \n \n 3.71 | \n \n \n 3.89 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.03 | \n \n \n 4.06 | \n \n \n 3.97 | \n \n \n 3.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.08 | \n \n \n 3.41 | \n \n \n 3.34 | \n \n \n 3.35 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 7.56 | \n \n \n 6.90 | \n \n \n 5.70 | \n \n \n 4.88 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 400.12 | \n \n \n 393.70 | \n \n \n 394.21 | \n \n \n 403.50 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 419.87 | \n \n \n 423.62 | \n \n \n 428.16 | \n \n \n 439.72 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 339.91 | \n \n \n 347.29 | \n \n \n 352.66 | \n \n \n 363.59 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 22,900.95 | \n \n \n 23,303.78 | \n \n \n 23,825.37 | \n \n \n 24,397.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 23,354.42 | \n \n \n 23,883.09 | \n \n \n 24,451.63 | \n \n \n 25,020.82 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,039.64 | \n \n \n 22,368.94 | \n \n \n 23,099.22 | \n \n \n 23,768.80 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 4,672.66 | \n \n \n 4,796.24 | \n \n \n 5,043.19 | \n \n \n 5,368.63 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 4,950.59 | \n \n \n 5,058.20 | \n \n \n 5,256.09 | \n \n \n 5,490.26 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 2,904.90 | \n \n \n 3,226.25 | \n \n \n 3,942.26 | \n \n \n 4,603.90 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
The weightings assigned to each economic scenario were as follows:
| \n \n Weightings | \n \n \n Base | \n \n \n Upside | \n \n \n Downside | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2023 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking considerations not otherwise incorporated within the above scenarios, such as the impact of any regulatory, legislative or political changes, have also been considered, but are not deemed to have a material impact, and therefore, no adjustment has been made to the ECL for such factors. This process is reviewed and monitored for appropriateness on a quarterly basis.
\nThe Group writes-off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity; and (ii) where Aegon\u2019s recovery method is foreclosing on collateral and the\u00a0value of\u00a0the collateral is such that there is no reasonable expectation of recovering in full.\u00a0
The Group may write-off financial assets that are still subject to enforcement activity. The outstanding contractual amounts of\u00a0such assets written-off during 2024 is not material. The Group still seeks to recover amounts it is legally owed in full, but which have been partially written off due to no reasonable expectation of full recovery.
\nThe Group has the option to modify the terms of loans provided to customers due to commercial renegotiations, or for distressed loans, with a view to maximizing recovery. \u00a0Such restructuring activities include extended payment term and penalty interest arrangements. Restructuring policies and practices are based on indicators or criteria which, in the judgment of management, indicate that payment will most likely continue. These policies are kept under continuous review.
The risk of default of such assets after modification is assessed at the reporting date and compared with the risk under the\u00a0original terms at initial recognition, when the modification is not substantial and so does not result in derecognition of the\u00a0original asset. The Group monitors the subsequent performance of modified assets. Aegon may determine that the credit risk has significantly improved after restructuring, so that the assets are moved from Stage 3 or Stage 2 (Lifetime ECL) to Stage\u00a01 (12-month ECL) (see note 4.2.6\u00a0 Expected credit losses (a) for details of the Group ECL staging classification). This\u00a0is\u00a0only the case for assets that have performed in accordance with the new terms for three consecutive months or more. The gross carrying amount of such assets held on December 31 2024 was EUR 0 million (2023: EUR 0 million).
\nAegon regularly monitors industry sectors and individual debt securities for sources of changes in the ECL allowance. These\u00a0sources may include one or more of the following:\u00a0
Transfers between Stages 1, 2 and 3 due to financial instruments experiencing significant increases (or decreases) of\u00a0credit\u00a0risk or becoming credit-impaired in the period, and the consequent \u201cstep up\u201d (or \u201cstep down\u201d) between 12-month and\u00a0lifetime\u00a0ECL;\u00a0
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments de-recognized in the period;\u00a0
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of\u00a0inputs to models;\u00a0
Impacts on the measurement of ECL due to changes made to models and assumptions;\u00a0
Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;\u00a0
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and,
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during\u00a0the period.
In addition, for asset-backed securities, cash flow trends and underlying levels of collateral are monitored. Furthermore, quality ratings of investment portfolios are based on a composite of the main rating agencies (S&P, Moody\u2019s, and Fitch) and Aegon\u2019s internal rating of the counterparty. The following tables explain the changes in the loss allowance changes between the beginning and the end of the annual period due to these factors:
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Loss allowance on January 1 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n 4 | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n 1 | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n \n \n (5) \n | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n Impact on year-end ECL of exposures transferred between stages during the year | \n \n \n 2 | \n \n \n \n \n (7) \n | \n \n \n \n \n (50) \n | \n \n \n - | \n \n \n \n \n (54) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 18 | \n \n \n 3 | \n \n \n 35 | \n \n \n - | \n \n \n 56 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (38) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (42) \n | \n
| \n \n Change in models | \n \n \n \n \n (12) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (45) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (11) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (20) \n | \n
| \n \n Loss allowance on December 31 | \n \n \n \n \n (187) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Loss allowance on January 1 | \n \n \n \n \n (156) \n | \n \n \n \n \n (32) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (276) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n 2 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n 2 | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n \n \n (3) \n | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n 39 | \n \n \n - | \n \n \n - | \n
| \n \n Impact on year-end ECL of exposures transferred between stages during the year | \n \n \n 36 | \n \n \n \n \n (2) \n | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n \n \n (5) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 26 | \n \n \n 3 | \n \n \n 44 | \n \n \n - | \n \n \n 73 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (16) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Change in models | \n \n \n \n \n (5) \n | \n \n \n 6 | \n \n \n \n \n (14) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (13) \n | \n
| \n \n Net exchange differences | \n \n \n 5 | \n \n \n 1 | \n \n \n 2 | \n \n \n - | \n \n \n 9 | \n
| \n \n Loss allowance on December 31 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
The ECL allowance for debt securities measured at FVOCI of EUR 341 million (December 2023: EUR 237 million) does not reduce the carrying amount of these investments (which are measured at fair value) but gives rise to an equal and opposite gain in OCI.
Expected credit losses on loans increased by EUR (92) million to EUR (118) million as per December 2024 (2023:\u00a0(26)\u00a0million). The increase in expected credit losses was mainly driven by a mortgage loan in Aegon US and partly by the stage transfer of an office facing with occupancy and valuation challenges (2023:\u00a0EUR\u00a0(14) million).
The majority of the expected credit losses recognized are in Stage 2 EUR (75) million (2023: EUR (24) million).
Based on the tables above, the following is a reconciliation of the loss allowance movements with an impact on the income statement with the net impairment charge presented in the income statement. Other represents impairment charges on asset types which are not individually material.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Loans measured at amortized cost | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \n
| \n \n Debt securities measured at FVOCI | \n \n \n \n \n (140) \n | \n \n \n \n \n (44) \n | \n
| \n \n Other | \n \n \n \n \n (9) \n | \n \n \n \n \n (60) \n | \n
| \n \n Net impairment charge in P&L | \n \n \n \n \n (237) \n | \n \n \n \n \n (119) \n | \n
The following tables further explains changes in the gross carrying amount / market value \u00a0of the financial assets and their\u00a0significance to the changes in the loss allowance for the same portfolio as discussed above:
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 46,461 | \n \n \n 357 | \n \n \n 325 | \n \n \n 100 | \n \n \n 47,242 | \n
| \n \n Transfers: | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (200) \n | \n \n \n 200 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n \n \n (48) \n | \n \n \n 48 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n 7 | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 150 | \n \n \n \n \n (150) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n 2 | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (5,201) \n | \n \n \n \n \n (69) \n | \n \n \n \n \n (102) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (5,394) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 8,421 | \n \n \n 21 | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n 8,434 | \n
| \n \n Modification of contractual cash flows of financial assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Unrealized gains/losses through equity | \n \n \n \n \n (1,294) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (1,329) \n | \n
| \n \n Amortizations through income statement | \n \n \n 94 | \n \n \n 1 | \n \n \n 27 | \n \n \n 17 | \n \n \n 138 | \n
| \n \n Movements related to fair value hedges | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Net exchange differences | \n \n \n 3,154 | \n \n \n 22 | \n \n \n 19 | \n \n \n 6 | \n \n \n 3,201 | \n
| \n \n Other movements | \n \n \n \n \n (1) \n | \n \n \n 0 | \n \n \n \n \n (1) \n | \n \n \n \n \n (0) \n | \n \n \n \n \n (2) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (45) \n | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n \n \n (43) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 51,529 | \n \n \n 335 | \n \n \n 291 | \n \n \n 92 | \n \n \n 52,247 | \n
| \n \n Expected credit losses on December 31 | \n \n \n \n \n (187) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 50,666 | \n \n \n 413 | \n \n \n 403 | \n \n \n 125 | \n \n \n 51,607 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (80) \n | \n \n \n 80 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (45) \n | \n \n \n - | \n \n \n 45 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n 23 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 76 | \n \n \n \n \n (76) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n 59 | \n \n \n - | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (7,836) \n | \n \n \n \n \n (83) \n | \n \n \n \n \n (111) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (8,057) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 3,672 | \n \n \n 37 | \n \n \n 22 | \n \n \n - | \n \n \n 3,731 | \n
| \n \n Modification of contractual cash flows of financial assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Unrealized gains/losses through equity | \n \n \n 1,488 | \n \n \n 16 | \n \n \n 1 | \n \n \n \n \n (10) \n | \n \n \n 1,495 | \n
| \n \n Amortizations through income statement | \n \n \n 113 | \n \n \n - | \n \n \n 19 | \n \n \n 17 | \n \n \n 148 | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,637) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (1,666) \n | \n
| \n \n Other movements | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (9) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (6) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 46,461 | \n \n \n 357 | \n \n \n 325 | \n \n \n 100 | \n \n \n 47,242 | \n
| \n \n Expected credit losses on December 31 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (237) \n | \n
The total amount of undiscounted ECL at initial recognition for purchased or originated credit-impaired financial assets recognized during the period was EUR 4 million (2023: EUR 2 million).
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,182 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (162) \n | \n \n \n 162 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 75 | \n \n \n \n \n (75) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (633) \n | \n \n \n \n \n (69) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (702) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 483 | \n \n \n 76 | \n \n \n - | \n \n \n - | \n \n \n 559 | \n
| \n \n Realized gains and losses through income statement | \n \n \n 3 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Net exchange differences | \n \n \n 667 | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 674 | \n
| \n \n Other movements | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n
| \n \n (-) Expected credit losses on December 31 | \n \n \n \n \n (38) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n
| \n \n Net carrying amount on December 31 | \n \n \n 10,536 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 10,416 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 10,418 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (39) \n | \n \n \n 39 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (566) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (571) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 691 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 691 | \n
| \n \n Net exchange differences | \n \n \n \n \n (354) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (355) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,182 | \n
| \n \n (-) Expected credit losses on December 31 | \n \n \n \n \n (24) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Net carrying amount on December 31 | \n \n \n 10,123 | \n \n \n 33 | \n \n \n - | \n \n \n - | \n \n \n 10,156 | \n
ECL are sensitive to judgments and assumptions made regarding the formulation of forward-looking scenarios and how such scenarios are incorporated into the calculations. Management performs a sensitivity analysis on the ECL recognized on material classes of its assets. As ECL is not material at the end of 2024 and 2023, sensitivity on ECL is being assessed to be not material for 2024 and 2023 either.
\nMarket risk is the risk that changes in market prices (e.g. foreign exchange rates, interest rates) will affect the fulfillment cash\u00a0flows of insurance and reinsurance contracts as well as the fair value or future cash flows of financial instruments. The\u00a0objective of market risk management is to control exposures within acceptable parameters while optimizing the\u00a0return\u00a0on\u00a0risk.\u00a0
Aegon\u2019s management of market risk comprises equity price risk, interest rate risk and currency risk.
\nFluctuations in equity, real estate and capital markets have affected Aegon's profitability, capital position and sales of equity related products in the past and may continue to do so. Exposure to equity, real estate and capital markets exists in both assets and liabilities. Asset exposure exists through direct equity investment, where Aegon bears all or most of the volatility in\u00a0returns and investment performance risk. Equity market exposure is also present in insurance and investment contracts for\u00a0policyholders where funds are invested in equities, backing variable annuities, unit-linked products and mutual funds. Although\u00a0most of the risk remains with the policyholder, lower investment returns can reduce the asset management fee earned by Aegon on the asset balance in these products. In addition, some of this business has minimum return or accumulation guarantees.
In 2021, Transamerica expanded its dynamic hedge program to variable annuities with guaranteed minimum death benefit riders (GMDB) and remaining policies with guaranteed minimum income (GMIB) riders. This builds on the effective dynamic hedge program of policies with guaranteed minimum withdrawal benefits (GMWB). The dynamic hedge program covers the equity risks (and interest rate risk) embedded in the guarantees of its entire variable annuity portfolio. Dynamic hedging stabilizes cash flows and reduces sensitivities to changes in equity markets (and interest rates) on an economic basis.
The equity, real estate and other non-fixed-income portfolio of Aegon is as follows:
| \n \n Equity, real estate and non-fixed income exposure | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n
| \n \n Equity funds | \n \n \n 145 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 154 | \n
| \n \n Common shares | \n \n \n 95 | \n \n \n 14 | \n \n \n 5 | \n \n \n - | \n \n \n 114 | \n
| \n \n Preferred shares | \n \n \n 16 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 16 | \n
| \n \n Investments in real estate | \n \n \n 40 | \n \n \n - | \n \n \n 17 | \n \n \n - | \n \n \n 57 | \n
| \n \n Hedge funds | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n Other alternative investments | \n \n \n 2,682 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,682 | \n
| \n \n Other financial assets 1 | \n \n \n 1,800 | \n \n \n 716 | \n \n \n 33 | \n \n \n 2 | \n \n \n 2,551 | \n
| \n \n On December 31 | \n \n \n 4,785 | \n \n \n 730 | \n \n \n 56 | \n \n \n 10 | \n \n \n 5,582 | \n
| \n \n Equity, real estate and non-fixed income exposure | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 | \n
| \n \n Equity funds | \n \n \n 133 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 141 | \n
| \n \n Common shares | \n \n \n 106 | \n \n \n 14 | \n \n \n 5 | \n \n \n - | \n \n \n 126 | \n
| \n \n Preferred shares | \n \n \n 29 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 29 | \n
| \n \n Investments in real estate | \n \n \n 38 | \n \n \n - | \n \n \n 17 | \n \n \n - | \n \n \n 55 | \n
| \n \n Hedge funds | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Other alternative investments | \n \n \n 2,404 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,404 | \n
| \n \n Other financial assets 1 | \n \n \n 1,856 | \n \n \n 772 | \n \n \n 4 | \n \n \n 1 | \n \n \n 2,633 | \n
| \n \n On December 31 | \n \n \n 4,573 | \n \n \n 786 | \n \n \n 27 | \n \n \n 10 | \n \n \n 5,395 | \n
| \n \n Market risk concentrations \u2013 shares | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n
| \n \n Communication | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Consumer | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Financials | \n \n \n 23 | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 28 | \n
| \n \n Funds | \n \n \n 140 | \n \n \n 14 | \n \n \n - | \n \n \n - | \n \n \n 154 | \n
| \n \n Industries | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Other | \n \n \n 83 | \n \n \n - | \n \n \n 33 | \n \n \n 9 | \n \n \n 125 | \n
| \n \n On December 31 | \n \n \n 256 | \n \n \n 14 | \n \n \n 39 | \n \n \n 9 | \n \n \n 317 | \n
| \n \n Market risk concentrations \u2013 shares | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 | \n
| \n \n Communication | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Consumer | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Financials | \n \n \n 136 | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 142 | \n
| \n \n Funds | \n \n \n 30 | \n \n \n 14 | \n \n \n - | \n \n \n - | \n \n \n 45 | \n
| \n \n Industries | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 11 | \n
| \n \n Other | \n \n \n 84 | \n \n \n - | \n \n \n 4 | \n \n \n 9 | \n \n \n 97 | \n
| \n \n On December 31 | \n \n \n 267 | \n \n \n 14 | \n \n \n 10 | \n \n \n 9 | \n \n \n 300 | \n
The table that follows sets forth the closing levels of certain major indices at the end of the last five years.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n \n \n 2020 | \n
| \n \n S&P 500 | \n \n \n 5,882 | \n \n \n 4,770 | \n \n \n 3,840 | \n \n \n 4,766 | \n \n \n 3,756 | \n
| \n \n Nasdaq | \n \n \n 21,012 | \n \n \n 15,011 | \n \n \n 10,466 | \n \n \n 15,645 | \n \n \n 12,888 | \n
| \n \n FTSE 100 | \n \n \n 8,173 | \n \n \n 7,733 | \n \n \n 7,452 | \n \n \n 7,385 | \n \n \n 6,461 | \n
| \n \n AEX | \n \n \n 879 | \n \n \n 787 | \n \n \n 689 | \n \n \n 798 | \n \n \n 625 | \n
An analysis of Aegon\u2019s sensitivity to a 10% and 25% increase or decrease in equity prices at the reporting date, assuming that all other variables remain constant, is presented below.
| \n \n Sensitivity analysis of CSM , net result and shareholders\u2019 equity to equity markets | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n
| \n \n Equity 10% increase | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n \n \n (8) \n | \n \n \n \n \n (6) \n | \n \n | \n\n \n \n \n (5) \n | \n \n \n \n \n (13) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n \n \n (30) \n | \n \n \n - | \n \n \n \n \n (271) \n | \n \n \n \n \n (265) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 363 | \n \n \n 154 | \n \n \n 160 | \n \n \n 310 | \n \n \n 422 | \n \n \n 397 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Equity 10% decrease | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n 8 | \n \n \n 1 | \n \n | \n\n \n 4 | \n \n \n 11 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 7 | \n \n \n 7 | \n \n \n - | \n \n \n 229 | \n \n \n 225 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (331) \n | \n \n \n \n \n (169) \n | \n \n \n \n \n (178) \n | \n \n \n \n \n (316) \n | \n \n \n \n \n (465) \n | \n \n \n \n \n (431) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Equity 25% increase | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n \n \n (24) \n | \n \n \n \n \n (15) \n | \n \n | \n\n \n \n \n (31) \n | \n \n \n \n \n (50) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (95) \n | \n \n \n \n \n (99) \n | \n \n \n - | \n \n \n \n \n (737) \n | \n \n \n \n \n (721) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 916 | \n \n \n 398 | \n \n \n 413 | \n \n \n 775 | \n \n \n 1,035 | \n \n \n 989 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Equity 25% decrease | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n 24 | \n \n \n 9 | \n \n | \n\n \n 35 | \n \n \n 53 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 326 | \n \n \n 340 | \n \n \n - | \n \n \n 965 | \n \n \n 945 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (847) \n | \n \n \n \n \n (770) \n | \n \n \n \n \n (807) \n | \n \n \n \n \n (804) \n | \n \n \n \n \n (1,499) \n | \n \n \n \n \n (1,434) \n | \n
Over 2024 rising equity markets and interest rates in the US have resulted in reduced liability sensitivities, driven primarily by convex exposures of Indexed Universal Life and Variable Annuity products. Changes to asset sensitivities follow the liability changes, as hedge programs are rebalanced to match liabilities.
\nAegon bears interest rate risk with many of its products. In cases where cash flows are highly predictable, investing in assets that closely match the cash flow profile of the liabilities can offset this risk. For some Aegon country units, local capital markets are not well developed, which prevents the complete matching of assets and liabilities for those businesses. For\u00a0some products, cash flows are less predictable as a result of policyholder actions that can be affected by the level of interest rates.
In periods of rapidly increasing interest rates, policy loans, surrenders and withdrawals may increase. Premiums in flexible premium policies may decrease as policyholders seek investments with higher perceived returns. This activity may result in\u00a0cash payments by Aegon requiring the sale of invested assets at a time when the prices of those assets are adversely affected by the increase in market interest rates; this may result in realized investment losses. These cash payments to policyholders result in a decrease in total invested assets and a decrease in net result.
During periods of sustained low interest rates, Aegon may not be able to preserve margins as a result of minimum interest rate guarantees and minimum guaranteed crediting rates provided on policies. Also, investment earnings may be lower because the interest earnings on new fixed-income investments are likely to have declined with the market interest rates. Mortgage loans and redeemable bonds in the investment portfolio are more likely to be repaid as borrowers seek to borrow at\u00a0lower interest rates and Aegon may be required to reinvest the proceeds in securities bearing lower interest rates. Accordingly, net result declines as a result of a decrease in the spread between returns on the investment portfolio and the\u00a0interest rates either credited to policyholders or assumed in reserves.
Aegon manages interest rate risk closely, taking into account all the complexity regarding policyholder behavior and management action. Aegon employs sophisticated interest rate measurement techniques and actively uses derivatives and other risk mitigation tools to closely manage its interest rate risk exposure. Aegon operates an Investment & Counterparty Risk policy that limits the amount of interest rate risk to which the Group is exposed. All derivative use is governed by Aegon's Derivative Use Policy. A detailed description of the use of derivatives within Aegon is included in note 20 Derivatives.
Transamerica's dynamic hedge program contains variable annuities with guaranteed minimum death benefit riders (GMDB) and policies with guaranteed minimum income (GMIB) riders. This builds on the effective dynamic hedge program of policies with guaranteed minimum withdrawal benefits (GMWB). The dynamic hedge program covers the interest rate (and equity risks) embedded in the guarantees of its entire variable annuity portfolio. Dynamic hedging stabilizes cash flows and reduces sensitivities to changes in interest rates (and equity markets) on an economic basis.
The following table shows interest rates at the end of each of the past five years.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n \n \n 2020 | \n
| \n \n 3 month Term SOFR | \n \n \n 4.31% | \n \n \n 5.33% | \n \n \n 4.59% | \n \n \n 0.91% | \n \n \n 0.07% | \n
| \n \n 3-month EURIBOR | \n \n \n 2.71% | \n \n \n 3.91% | \n \n \n 2.13% | \n \n \n -0.57% | \n \n \n -0.55% | \n
| \n \n 10-year US Treasury | \n \n \n 4.57% | \n \n \n 3.86% | \n \n \n 3.83% | \n \n \n 1.78% | \n \n \n 0.91% | \n
| \n \n 10-year Dutch government | \n \n \n 2.59% | \n \n \n 2.32% | \n \n \n 2.91% | \n \n \n -0.03% | \n \n \n -0.48% | \n
An analysis of Aegon\u2019s sensitivity to a 100 basis points parallel increase or decrease in market interest rates at the reporting date, assuming that all other variables remain constant, is presented below:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n
| \n \n 100 bps increase - Yield curve | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n \n \n (12) \n | \n \n \n \n \n (729) \n | \n \n | \n\n \n \n \n (114) \n | \n \n \n \n \n (652) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (717) \n | \n \n \n \n \n (3,596) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (1,029) \n | \n \n \n \n \n (3,876) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 49 | \n \n \n 742 | \n \n \n 4,009 | \n \n \n 126 | \n \n \n 1,008 | \n \n \n 4,158 | \n
| \n \n 100 bps decrease - Yield curve | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n 15 | \n \n \n 859 | \n \n | \n\n \n 35 | \n \n \n 655 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 957 | \n \n \n 4,255 | \n \n \n 6 | \n \n \n 1,258 | \n \n \n 4,625 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (50) \n | \n \n \n \n \n (989) \n | \n \n \n \n \n (5,113) \n | \n \n \n \n \n (133) \n | \n \n \n \n \n (1,306) \n | \n \n \n \n \n (5,303) \n | \n
Over 2024 rising interest rates and equity markets in the US have led to reduced liability sensitivities, driven primarily by convex exposures of Variable Annuity products. Other long duration products such as Long Term Care and Unit Linked products with Non Lapse or secondary guarantees also have a natural convexity, leading to lower liability sensitivities when interest rate rise. Changes to asset sensitivities follow the liability changes, as hedge programs are rebalanced to match liabilities.
The exposures of our different products vary, and we have a number of asymmetric exposures, in particular. This is mainly explained by certain US products:
For a number of products (e.g. our Stable Value Solutions and parts of the Universal Life products), we have stable surrender values alongside stable crediting rates. This means that, as interest rates rise, it becomes more attractive in the short term for customers to lapse their policies and, due to the market movements, this leads to increased losses. There are also asymmetries from accounting rules of IFRS, where decreases in interest rates which turn SVS liabilities negative will be floored at zero based on IFRS 9 rules applied to these contracts.\u00a0
For other longer duration products such as Long-Term Care and Unit Linked products with non-lapse or secondary guarantees, we have a natural convexity, meaning we are more exposed to interest rates falling, which results in adverse sensitivities on these products than to interest rates rising which are positive. This is because we still expect to receive premiums over the next 10 to 20 years but will continue to pay claims for many years thereafter. The interaction of these two factors with the more symmetrical exposures on other products results in our overall sensitivities showing an adverse impact to both rising and falling interest rates.
On 30 September 2024, the remaining synthetic LIBOR rates were published for the last time and LIBOR came to an end. Before this, all derivative financial instruments using USD LIBOR and GBP LIBOR as a benchmark rate, transitioned to an alternative benchmark rate. Following the formal discontinuation, there are no remaining financial derivative instruments to\u00a0be\u00a0transitioned to an alternative benchmark rate.
\nAs an international group, Aegon is subject to foreign currency translation risk. Foreign currency exposure exists mainly when policies are denominated in currencies other than the issuer's functional currency. Currency risk in the investment portfolios backing insurance and investment liabilities is managed using asset-liability-matching principles. Assets allocated to equity are kept in local currencies to the extent shareholders' equity is required to satisfy regulatory and self-imposed capital requirements. Therefore, currency exchange rate fluctuations will affect the level of shareholders' equity as a result of the conversion of subsidiaries into euros, the Group's presentation currency. Aegon holds the remainder of its capital base (perpetual capital securities, subordinated and senior debt) in various currencies in amounts that are targeted to correspond to the book value of the country units. This balancing mitigates currency translation impacts on shareholders' equity and leverage ratios. Aegon does not hedge the income streams from the main non-euro units and, as a result, earnings may fluctuate due to currency translation. As Aegon has significant business segments in the Americas and in the United Kingdom, the principal sources of exposure from currency fluctuations are due to the differences between the US dollar and the euro, and between the UK pound and the euro. Aegon may experience significant changes in net result and shareholders' equity because of these fluctuations.
Aegon operates an Investment & Counterparty Risk Policy, which applies currency risk exposure limits both at Group and regional levels, and under which direct currency speculation or program trading by country units is not allowed unless explicit approval has been granted by the Group Risk and Capital Committee and the CEO. Assets should be held in the functional currency of the business written or hedged back to that currency. Where this is not possible or practical, remaining currency exposure should be sufficiently documented and limits are placed on the total exposure at both group level and for individual country units.
Information on Aegon's historical net result and shareholders' equity in functional currency are shown in the table below:
| \n \n Amounts in EUR million | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Net result | \n \n | \n\n | \n\n | \n
| \n \n \n \n Americas (in USD) \n | \n \n \n 198 | \n \n \n \n \n (266) \n | \n \n \n 562 | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 56 | \n \n \n 26 | \n \n \n 57 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Equity in functional currency | \n \n | \n\n | \n\n | \n
| \n \n \n \n Americas (in USD) \n | \n \n \n 3,838 | \n \n \n 3,690 | \n \n \n 3,456 | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 1,198 | \n \n \n 1,256 | \n \n \n 1,373 | \n
The summary quantitative information about Aegon\u2019s exposure to currency risk arising from insurance and reinsurance contracts and financial instruments was as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n \n Amounts in EUR million | \n \n \n EUR | \n \n \n GBP | \n \n \n USD | \n \n \n Other | \n \n \n Total | \n \n \n EUR | \n \n \n GBP | \n \n \n USD | \n \n \n Other | \n \n \n Total | \n
| \n \n Financial instruments - assets | \n \n \n 729 | \n \n \n 1,588 | \n \n \n 72,942 | \n \n \n 819 | \n \n \n 76,078 | \n \n \n 722 | \n \n \n 1,713 | \n \n \n 70,557 | \n \n \n 928 | \n \n \n 73,921 | \n
| \n \n Financial instruments - liabilities | \n \n \n 2,823 | \n \n \n 51,034 | \n \n \n 44,925 | \n \n \n - | \n \n \n 98,783 | \n \n \n 2,823 | \n \n \n 40,242 | \n \n \n 38,387 | \n \n \n - | \n \n \n 81,452 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance and reinsurance contract - assets | \n \n \n 7 | \n \n \n 3 | \n \n \n 16,090 | \n \n \n 46 | \n \n \n 16,147 | \n \n \n 7 | \n \n \n 2 | \n \n \n 16,744 | \n \n \n 39 | \n \n \n 16,793 | \n
| \n \n Insurance and reinsurance contract - liabilities | \n \n \n 720 | \n \n \n 66,675 | \n \n \n 137,867 | \n \n \n 5,730 | \n \n \n 210,993 | \n \n \n 715 | \n \n \n 61,922 | \n \n \n 130,886 | \n \n \n 6,124 | \n \n \n 199,648 | \n
The exchange rates for the US dollar and the UK pound per euro for each of the last five year ends are presented in\u00a0the\u00a0table\u00a0below:
| \n \n Closing rates | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n \n \n 2020 | \n
| \n \n USD | \n \n \n 1.04 | \n \n \n 1.10 | \n \n \n 1.07 | \n \n \n 1.14 | \n \n \n 1.22 | \n
| \n \n GBP | \n \n \n 0.83 | \n \n \n 0.87 | \n \n \n 0.89 | \n \n \n 0.84 | \n \n \n 0.90 | \n
Aegon Group companies' foreign currency exposure from monetary assets and liabilities denominated in foreign currencies (that is, other than the entity's functional currency), is not material.
\nThe sensitivity analysis in the following table shows an estimate of the translation effect of movements in the exchange rates of functional currencies of foreign subsidiaries against the euro presentation currency of the Group's financial statements, on\u00a0net income and shareholders' equity.\u200b\u200b\u200b\u200b\u200b\u200b\u200b
| \n \n Movement of markets 1 | \n \n \n Estimated approximate effects on net income | \n \n \n Estimated approximate effects on shareholders' equity | \n
| \n \n 2024 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD currencies relative to the euro | \n \n \n 43 | \n \n \n 734 | \n
| \n \n Increase by 15% of GBP currencies relative to the euro | \n \n \n 8 | \n \n \n 264 | \n
| \n \n Increase by 15% of non-euro currencies relative to the euro | \n \n \n 72 | \n \n \n 1,126 | \n
| \n \n Decrease by 15% of USD currencies relative to the euro | \n \n \n \n \n (31) \n | \n \n \n \n \n (543) \n | \n
| \n \n Decrease by 15% of GBP currencies relative to the euro | \n \n \n \n \n (6) \n | \n \n \n \n \n (195) \n | \n
| \n \n Decrease by 15% of non-euro currencies relative to the euro | \n \n \n \n \n (53) \n | \n \n \n \n \n (832) \n | \n
| \n | \n\n | \n\n | \n
| \n \n 2023 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD currencies relative to the euro | \n \n \n \n \n (27) \n | \n \n \n 769 | \n
| \n \n Increase by 15% of GBP currencies relative to the euro | \n \n \n \n \n (2) \n | \n \n \n 264 | \n
| \n \n Increase by 15% of non-euro currencies relative to the euro | \n \n \n \n \n (49) \n | \n \n \n 1,145 | \n
| \n \n Decrease by 15% of USD currencies relative to the euro | \n \n \n 20 | \n \n \n \n \n (569) \n | \n
| \n \n Decrease by 15% of GBP currencies relative to the euro | \n \n \n 2 | \n \n \n \n \n (195) \n | \n
| \n \n Decrease by 15% of non-euro currencies relative to the euro | \n \n \n 36 | \n \n \n \n \n (847) \n | \n
Liquidity risk is inherent in much of Aegon's business. Each asset purchased and liability incurred has its own liquidity characteristics. Some liabilities are surrenderable while some assets, such as privately placed loans, mortgage loans, real\u00a0estate, and limited partnership interests, have low liquidity. If Aegon requires significant amounts of cash on short notice in\u00a0excess of normal cash requirements and existing credit facilities, it may have difficulty selling these investments at attractive prices or in a timely manner. Liquidity risk is also affected by the use of collateralized financial derivatives to mitigate other risks.
Aegon operates a Liquidity Risk Policy under which country units are obliged to maintain sufficient levels of highly liquid assets to meet cash demands by policyholders and account holders over the next two years. Potential cash demands are assessed under a stress scenario including spikes in disintermediation risk due to rising interest rates and concerns over Aegon's financial strength due to multiple downgrades of the Group's credit rating. At the same time, the liquidity of assets other than cash and government issues is assumed to be severely impaired for an extended period of time. All legal entities and Aegon\u00a0Group must maintain sufficient liquidity to meet all cash needs under this extreme scenario.
Aegon held EUR 16,291 million of investments in cash, money market products and government bonds that are readily saleable or redeemable on demand (2023: EUR 19,399 million, exclude the investments of disposal group). The\u00a0Group expects to meet its obligations, even in a stressed liquidity event, from operating cash flows and the proceeds of maturing assets as well as these highly liquid assets. Further, the Group has access to back-up credit facilities, as disclosed in\u00a0note 31 Borrowings, amounting to EUR 1,544 million which were unused at the end of the reporting period (2023:\u00a0EUR 2,623 million).
The maturity analysis below shows the remaining contractual maturities of each category of financial liabilities (including\u00a0coupon interest). When the counterparty has a choice of when an amount is paid,\u00a0 the liability is included on\u00a0the\u00a0basis\u00a0of the earliest date on which it can be required to be paid. Financial liabilities that can be required to be\u00a0paid on\u00a0demand without any delay are reported in the category \"On demand.\" If there is a notice period, it has been assumed that notice is\u00a0given immediately, and the repayment has been presented at the earliest date after the end of the notice period. When the amount payable is not fixed, the amount reported is determined by reference to the conditions existing at the reporting date. For\u00a0example, when the amount payable varies with changes in an index, the amount disclosed may be based on the level of the\u00a0index at the reporting date.
To manage the liquidity risk arising from financial liabilities, Aegon holds liquid assets comprising cash and cash equivalents and investment grade investment securities for which there is an active and liquid market. These assets can be readily sold to\u00a0meet liquidity requirements. For this reason, Aegon believes that it is not necessary to disclose a maturity analysis in\u00a0respect of these assets to enable users to evaluate the nature and extent of liquidity risk.
Aegon's liquidity management is based on expected claims and benefit payments rather than on the contractual maturities. The projected cash benefit payments in the table below (maturity analysis - insurance and reinsurance contracts) are based on management's best estimates of the expected gross benefits and expenses, partially offset by the expected gross premiums, fees and charges relating to the existing business in force. Estimated cash benefit payments are based on mortality, morbidity and lapse assumptions based on Aegon's historical experience, modified for recently observed trends. Actual payment obligations may differ if experience varies from these assumptions. The cash benefit payments are presented on an undiscounted basis and are before the deduction of tax and before reinsurance.
For maturity information on other obligations, please see note 39 Commitments and contingencies.
\nThe following tables provides a maturity analysis of Aegon\u2019s insurance and reinsurance contracts, which reflects the dates on\u00a0which the cash flows are expected to occur. The cash flows presented below represent the undiscounted best estimate liability for the relevant periods.
| \n \n \n \n Undiscounted best estimate liability (i.e. Remaining contractual undiscounted net cash flows) \n | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 10,086 | \n \n \n 9,874 | \n \n \n 9,554 | \n \n \n 8,886 | \n \n \n 8,689 | \n \n \n 156,595 | \n \n \n 203,683 | \n
| \n \n - Without direct participation contracts | \n \n \n 10,827 | \n \n \n 10,448 | \n \n \n 9,924 | \n \n \n 9,223 | \n \n \n 8,836 | \n \n \n 136,030 | \n \n \n 185,290 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 1,880 | \n \n \n 1,964 | \n \n \n 1,911 | \n \n \n 1,688 | \n \n \n 1,681 | \n \n \n 23,816 | \n \n \n 32,940 | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n 20 | \n \n \n 21 | \n \n \n 20 | \n \n \n 20 | \n \n \n 20 | \n \n \n 827 | \n \n \n 928 | \n
| \n \n Total | \n \n \n 22,814 | \n \n \n 22,307 | \n \n \n 21,408 | \n \n \n 19,818 | \n \n \n 19,226 | \n \n \n 317,268 | \n \n \n 422,841 | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 8,737 | \n \n \n 8,287 | \n \n \n 8,186 | \n \n \n 7,823 | \n \n \n 7,187 | \n \n \n 127,351 | \n \n \n 167,571 | \n
| \n \n - Without direct participation contracts | \n \n \n 9,105 | \n \n \n 8,651 | \n \n \n 8,041 | \n \n \n 7,541 | \n \n \n 6,960 | \n \n \n 103,939 | \n \n \n 144,237 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 1,717 | \n \n \n 1,637 | \n \n \n 1,788 | \n \n \n 1,732 | \n \n \n 1,511 | \n \n \n 21,407 | \n \n \n 29,793 | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n 46 | \n \n \n 43 | \n \n \n 41 | \n \n \n 39 | \n \n \n 39 | \n \n \n 1,370 | \n \n \n 1,578 | \n
| \n \n Total | \n \n \n 19,605 | \n \n \n 18,618 | \n \n \n 18,056 | \n \n \n 17,136 | \n \n \n 15,698 | \n \n \n 254,067 | \n \n \n 343,179 | \n
| \n \n Expected release of risk adjustment | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 31 | \n \n \n 30 | \n \n \n 27 | \n \n \n 27 | \n \n \n 26 | \n \n \n 395 | \n \n \n 535 | \n
| \n \n - Without direct participation contracts | \n \n \n 53 | \n \n \n 48 | \n \n \n 45 | \n \n \n 44 | \n \n \n 45 | \n \n \n 2,525 | \n \n \n 2,760 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 10 | \n \n \n 9 | \n \n \n 7 | \n \n \n 8 | \n \n \n 8 | \n \n \n 71 | \n \n \n 112 | \n
| \n \n - Without direct participation contracts | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n \n \n (15) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (299) \n | \n \n \n \n \n (361) \n | \n
| \n \n Total | \n \n \n 79 | \n \n \n 74 | \n \n \n 67 | \n \n \n 68 | \n \n \n 68 | \n \n \n 2,691 | \n \n \n 3,047 | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 30 | \n \n \n 35 | \n \n \n 32 | \n \n \n 29 | \n \n \n 29 | \n \n \n 413 | \n \n \n 568 | \n
| \n \n - Without direct participation contracts | \n \n \n 72 | \n \n \n 63 | \n \n \n 60 | \n \n \n 57 | \n \n \n 58 | \n \n \n 2,373 | \n \n \n 2,683 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 9 | \n \n \n 12 | \n \n \n 10 | \n \n \n 8 | \n \n \n 9 | \n \n \n 81 | \n \n \n 128 | \n
| \n \n - Without direct participation contracts | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n \n \n (12) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (278) \n | \n \n \n \n \n (332) \n | \n
| \n \n Total | \n \n \n 98 | \n \n \n 99 | \n \n \n 92 | \n \n \n 85 | \n \n \n 85 | \n \n \n 2,589 | \n \n \n 3,047 | \n
Most insurance products and investment contracts with discretionary participating features of Aegon contain investment related or investment return services, where policyholders are able to surrender or early terminate their contracts to receive their current account value net of contractual penalties after a specific notional period. The current account value reflects the fair value of underlying investments. Main product types where such demand features exist are permanent life insurance products and annuities issued in the Americas, and unit-linked contracts issued in Europe.
\nThe following table (maturity analysis - financial instruments) details the Group's liquidity analysis for its derivative financial instruments, based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on\u00a0a\u00a0net\u00a0basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement.
| \n \n \n \n Maturity analysis \u2013 gross undiscounted contractual cash flows (for non-derivatives) \n | \n \n \n On demand | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Trust pass-through securities | \n \n \n - | \n \n \n 10 | \n \n \n 94 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 72 | \n \n \n 187 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 88 | \n \n \n 88 | \n \n \n 88 | \n \n \n 67 | \n \n \n 46 | \n \n \n 2,577 | \n \n \n 2,954 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 1,155 | \n \n \n 588 | \n \n \n 805 | \n \n \n 51 | \n \n \n 51 | \n \n \n 1,112 | \n \n \n 3,762 | \n
| \n \n Investment contracts | \n \n \n 39,959 | \n \n \n 50,922 | \n \n \n 9 | \n \n \n 118 | \n \n \n 24 | \n \n \n 4 | \n \n \n 60 | \n \n \n 91,095 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 37 | \n \n \n 30 | \n \n \n 27 | \n \n \n 25 | \n \n \n 21 | \n \n \n 123 | \n \n \n 261 | \n
| \n \n Other financial liabilities | \n \n \n 3,419 | \n \n \n 856 | \n \n \n 27 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4,307 | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Trust pass-through securities | \n \n \n - | \n \n \n 9 | \n \n \n 9 | \n \n \n 88 | \n \n \n 3 | \n \n \n 3 | \n \n \n 71 | \n \n \n 184 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 111 | \n \n \n 83 | \n \n \n 83 | \n \n \n 83 | \n \n \n 63 | \n \n \n 3,158 | \n \n \n 3,579 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 123 | \n \n \n 1,057 | \n \n \n 726 | \n \n \n 48 | \n \n \n 48 | \n \n \n 1,140 | \n \n \n 3,143 | \n
| \n \n Investment contracts | \n \n \n 34,464 | \n \n \n 40,059 | \n \n \n 11 | \n \n \n 8 | \n \n \n 110 | \n \n \n 23 | \n \n \n 74 | \n \n \n 74,749 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 34 | \n \n \n 29 | \n \n \n 24 | \n \n \n 21 | \n \n \n 18 | \n \n \n 114 | \n \n \n 240 | \n
| \n \n Other financial liabilities | \n \n \n 4,582 | \n \n \n 930 | \n \n \n 52 | \n \n \n 7 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 5,575 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n \n Maturity analysis relating to derivatives1 | \n \n \n On demand | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n Gross settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 1,301 | \n \n \n 182 | \n \n \n 218 | \n \n \n 153 | \n \n \n 196 | \n \n \n 2,603 | \n \n \n 4,653 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (1,241) \n | \n \n \n \n \n (135) \n | \n \n \n \n \n (191) \n | \n \n \n \n \n (134) \n | \n \n \n \n \n (194) \n | \n \n \n \n \n (2,450) \n | \n \n \n \n \n (4,345) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 582 | \n \n \n 425 | \n \n \n 380 | \n \n \n 323 | \n \n \n 286 | \n \n \n 6,587 | \n \n \n 8,583 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (475) \n | \n \n \n \n \n (360) \n | \n \n \n \n \n (323) \n | \n \n \n \n \n (259) \n | \n \n \n \n \n (246) \n | \n \n \n \n \n (11,644) \n | \n \n \n \n \n (13,308) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n \n Maturity analysis relating to derivatives1 | \n \n \n On demand | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n Gross settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 9,757 | \n \n \n 170 | \n \n \n 171 | \n \n \n 202 | \n \n \n 145 | \n \n \n 2,560 | \n \n \n 13,004 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (9,710) \n | \n \n \n \n \n (121) \n | \n \n \n \n \n (134) \n | \n \n \n \n \n (191) \n | \n \n \n \n \n (134) \n | \n \n \n \n \n (2,458) \n | \n \n \n \n \n (12,748) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 282 | \n \n \n 253 | \n \n \n 260 | \n \n \n 286 | \n \n \n 341 | \n \n \n 7,509 | \n \n \n 8,930 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (560) \n | \n \n \n \n \n (224) \n | \n \n \n \n \n (244) \n | \n \n \n \n \n (266) \n | \n \n \n \n \n (271) \n | \n \n \n \n \n (12,248) \n | \n \n \n \n \n (13,813) \n | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,233 | \n \n \n - | \n \n \n 2,233 | \n
| \n \n Loans | \n \n \n - | \n \n \n 428 | \n \n \n - | \n \n \n 428 | \n
| \n \n Other | \n \n \n - | \n \n \n 60 | \n \n \n - | \n \n \n 60 | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,720 | \n \n \n - | \n \n \n 2,720 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,166 | \n \n \n - | \n \n \n 2,166 | \n
| \n \n Loans | \n \n \n - | \n \n \n 433 | \n \n \n - | \n \n \n 433 | \n
| \n \n Other | \n \n \n - | \n \n \n 139 | \n \n \n - | \n \n \n 139 | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,738 | \n \n \n - | \n \n \n 2,738 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,479 | \n \n \n - | \n \n \n 2,479 | \n
| \n \n Loans | \n \n \n - | \n \n \n 425 | \n \n \n - | \n \n \n 425 | \n
| \n \n Other | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (6) \n | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,898 | \n \n \n - | \n \n \n 2,898 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Derivatives to which hedge accounting was not applied | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 197 | \n \n \n 11 | \n \n \n 132 | \n \n \n 340 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 301 | \n \n \n - | \n \n \n 301 | \n
| \n \n On December 31 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 231 | \n \n \n 54 | \n \n \n 137 | \n \n \n 422 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 315 | \n \n \n - | \n \n \n 315 | \n
| \n \n On December 31 | \n \n \n 231 | \n \n \n 369 | \n \n \n 137 | \n \n \n 737 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 182 | \n \n \n 48 | \n \n \n 128 | \n \n \n 358 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 217 | \n \n \n - | \n \n \n 217 | \n
| \n \n On December 31 | \n \n \n 182 | \n \n \n 265 | \n \n \n 128 | \n \n \n 575 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 996 | \n \n \n \n \n (4) \n | \n \n \n 639 | \n \n \n 1,632 | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (164) \n | \n \n \n \n \n (1,145) \n | \n \n \n \n \n (107) \n | \n \n \n \n \n (1,416) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n 10,819 | \n \n \n - | \n \n \n 1,215 | \n \n \n 12,034 | \n
| \n \n Other | \n \n \n - | \n \n \n \n \n (90) \n | \n \n \n - | \n \n \n \n \n (90) \n | \n
| \n | \n\n \n 11,651 | \n \n \n \n \n (1,240) \n | \n \n \n 1,748 | \n \n \n 12,159 | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (167) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (311) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (1,297) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,297) \n | \n
| \n | \n\n \n \n \n (1,464) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (1,608) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n | \n\n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Investments measured at fair value through other comprehensive income (\"FVOCI\") \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n 5 | \n \n \n - | \n \n \n 3 | \n \n \n 8 | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n | \n\n \n 5 | \n \n \n 1 | \n \n \n 3 | \n \n \n 9 | \n
| \n \n On December 31 | \n \n \n 10,192 | \n \n \n \n \n (1,253) \n | \n \n \n 1,624 | \n \n \n 10,563 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 11,655 | \n \n \n \n \n (127) \n | \n \n \n 1,751 | \n \n \n 13,280 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (1,464) \n | \n \n \n \n \n (96) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (1,686) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n \n \n (1,030) \n | \n \n \n - | \n \n \n \n \n (1,030) \n | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 800 | \n \n \n 13 | \n \n \n 413 | \n \n \n 1,225 | \n
| \n \n Debt securities and money market investments | \n \n \n 55 | \n \n \n 1,366 | \n \n \n 36 | \n \n \n 1,457 | \n
| \n \n Unconsolidated investment funds | \n \n \n 11,800 | \n \n \n 11 | \n \n \n 939 | \n \n \n 12,750 | \n
| \n \n Other | \n \n \n - | \n \n \n 15 | \n \n \n - | \n \n \n 15 | \n
| \n | \n\n \n 12,655 | \n \n \n 1,404 | \n \n \n 1,388 | \n \n \n 15,447 | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (95) \n | \n \n \n 29 | \n \n \n \n \n (48) \n | \n \n \n \n \n (114) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (1,085) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,085) \n | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n
| \n | \n\n \n \n \n (1,181) \n | \n \n \n 31 | \n \n \n \n \n (48) \n | \n \n \n \n \n (1,197) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Loans | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n | \n\n \n - | \n \n \n \n \n (16) \n | \n \n \n - | \n \n \n \n \n (16) \n | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n \n \n (28) \n | \n \n \n - | \n \n \n \n \n (18) \n | \n \n \n \n \n (46) \n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n | \n\n \n \n \n (28) \n | \n \n \n 2 | \n \n \n \n \n (18) \n | \n \n \n \n \n (44) \n | \n
| \n \n On December 31 | \n \n \n 11,446 | \n \n \n 1,421 | \n \n \n 1,322 | \n \n \n 14,190 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 12,627 | \n \n \n \n \n (562) \n | \n \n \n 1,370 | \n \n \n 13,435 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (1,181) \n | \n \n \n 95 | \n \n \n \n \n (48) \n | \n \n \n \n \n (1,134) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n 1,888 | \n \n \n - | \n \n \n 1,888 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n \n \n (1,566) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (950) \n | \n \n \n \n \n (2,548) \n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (1,153) \n | \n \n \n \n \n (14,958) \n | \n \n \n \n \n (737) \n | \n \n \n \n \n (16,847) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n \n \n (18,538) \n | \n \n \n \n \n (38) \n | \n \n \n \n \n (1,785) \n | \n \n \n \n \n (20,360) \n | \n
| \n \n Other | \n \n \n - | \n \n \n 329 | \n \n \n - | \n \n \n 329 | \n
| \n | \n\n \n \n \n (21,256) \n | \n \n \n \n \n (14,699) \n | \n \n \n \n \n (3,471) \n | \n \n \n \n \n (39,427) \n | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (333) \n | \n \n \n \n \n (361) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (1,080) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (3,093) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,093) \n | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n \n \n (3) \n | \n
| \n | \n\n \n \n \n (3,427) \n | \n \n \n \n \n (364) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (4,176) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Loans | \n \n \n - | \n \n \n 36 | \n \n \n - | \n \n \n 36 | \n
| \n | \n\n \n - | \n \n \n 35 | \n \n \n - | \n \n \n 35 | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 36 | \n \n \n - | \n \n \n 36 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n \n \n (33) \n | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n \n \n (56) \n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n \n \n \n Net foreign currency gains and (losses) \n | \n \n \n - | \n \n \n 37 | \n \n \n - | \n \n \n 37 | \n
| \n | \n\n \n \n \n (33) \n | \n \n \n 38 | \n \n \n \n \n (23) \n | \n \n \n \n \n (18) \n | \n
| \n \n On December 31 | \n \n \n \n \n (24,716) \n | \n \n \n \n \n (14,990) \n | \n \n \n \n \n (3,880) \n | \n \n \n \n \n (43,586) \n | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n \n \n (21,289) \n | \n \n \n \n \n (714) \n | \n \n \n \n \n (3,495) \n | \n \n \n \n \n (25,498) \n | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (3,427) \n | \n \n \n \n \n (194) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (4,006) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n \n \n (14,081) \n | \n \n \n - | \n \n \n \n \n (14,081) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Impairment losses on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (103) \n | \n \n \n \n \n (77) \n | \n \n \n \n \n (121) \n | \n
| \n \n Loans | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \n \n \n 10 | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Impairment reversals on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n 3 | \n \n \n 37 | \n \n \n 26 | \n
| \n \n Impairment (losses) and reversals on non-financial assets and receivables | \n \n \n \n \n (3) \n | \n \n \n \n \n (31) \n | \n \n \n \n \n (17) \n | \n
| \n \n On December 31 | \n \n \n \n \n (190) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (95) \n | \n
Impairment losses in 2024 increased by EUR 104 million to EUR 190 million mainly due to expected credit loss (ECL) balance increases in Aegon US for bonds and mortgages following more adverse economic scenario output and real estate occupancy rates.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Debt securities and money market instruments | \n \n \n 484 | \n \n \n 457 | \n \n \n 405 | \n
| \n \n Other | \n \n \n 121 | \n \n \n 142 | \n \n \n 3 | \n
| \n \n On December 31 | \n \n \n 605 | \n \n \n 599 | \n \n \n 409 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 65 | \n \n \n 89 | \n \n \n 49 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n 13 | \n \n \n - | \n \n \n - | \n
| \n \n Non-derivative assets - PH designated | \n \n \n 108 | \n \n \n - | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 186 | \n \n \n 89 | \n \n \n 49 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 368 | \n \n \n 195 | \n \n \n \n \n (281) \n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (55) \n | \n \n \n 46 | \n \n \n \n \n (222) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n 7,367 | \n \n \n 6,805 | \n \n \n \n \n (9,961) \n | \n
| \n | \n\n \n 7,680 | \n \n \n 7,047 | \n \n \n \n \n (10,463) \n | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (38) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (162) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n 3 | \n \n \n 5 | \n \n \n 29 | \n
| \n \n Change in fair value of hedges on guarantees in investment contracts without DPF | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n 2 | \n \n \n 3 | \n \n \n 4 | \n
| \n | \n\n \n \n \n (35) \n | \n \n \n - | \n \n \n \n \n (129) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n \n \n \n \n (58) \n | \n
| \n | \n\n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n \n \n \n \n (58) \n | \n
| \n \n Comprised of: | \n \n | \n\n | \n\n | \n
| \n \n \n \n Investments measured at fair value through other comprehensive income (\"FVOCI\") \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n \n \n \n \n (58) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n 1 | \n \n \n \n \n (6) \n | \n \n \n \n \n (5) \n | \n
| \n \n \n \n Net foreign currency gains and (losses) \n | \n \n \n \n \n (2) \n | \n \n \n 2 | \n \n \n \n \n (1) \n | \n
| \n | \n\n \n - | \n \n \n \n \n (4) \n | \n \n \n \n \n (6) \n | \n
| \n \n On December 31 | \n \n \n 7,634 | \n \n \n 6,929 | \n \n \n \n \n (10,656) \n | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 7,666 | \n \n \n 7,043 | \n \n \n \n \n (10,466) \n | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n 14 | \n \n \n 3 | \n \n \n 3 | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n \n \n (47) \n | \n \n \n \n \n (117) \n | \n \n \n \n \n (192) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Impairment losses on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (40) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (13) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Impairment losses and reversals on non-financial assets and receivables | \n \n \n \n \n (7) \n | \n \n \n \n \n (29) \n | \n \n \n \n \n (30) \n | \n
| \n \n On December 31 | \n \n \n \n \n (47) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (43) \n | \n
| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Interest charges | \n \n \n 11.1 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n \n Other financing income | \n \n | \n\n \n - | \n \n \n - | \n \n \n 5 | \n
| \n \n On December 31 | \n \n | \n\n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (178) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Subordinated loans | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n \n \n \n \n (119) \n | \n
| \n \n Trust pass-through securities | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n Borrowings | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (54) \n | \n
| \n \n On December 31 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Cash at bank and in hand | \n \n \n 1,478 | \n \n \n 1,614 | \n \n \n 1,827 | \n
| \n \n Short-term deposits | \n \n \n 152 | \n \n \n 340 | \n \n \n 345 | \n
| \n \n Money market investments | \n \n \n 1,838 | \n \n \n 2,120 | \n \n \n 1,230 | \n
| \n \n On December 31 | \n \n \n 3,469 | \n \n \n 4,074 | \n \n \n 3,402 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Cash collateral related to securities lending, repurchase agreements and margins on derivatives transactions | \n \n \n 2,240 | \n \n \n 3,416 | \n \n \n 5,072 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Income from security lending programs | \n \n \n 4 | \n \n \n 7 | \n \n \n 7 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Weighted effective interest rate on short-term deposits | \n \n \n 3.17% | \n \n \n 3.90% | \n \n \n 1.70% | \n
| \n \n \n \n Average maturity on short-term deposits (in days) \n | \n \n \n 5 | \n \n \n 11 | \n \n \n 17 | \n
The carrying amounts disclosed reasonably approximate the fair values at year-end.
For cash collateral received related to securities lending, repurchase agreements, and margins on derivatives transactions, a\u00a0corresponding liability to repay the cash is recognized in other liabilities (see note 35 Other liabilities). Also, see note 40 Transfers of financial assets Transfer of financial assets for details on collateral received and paid. Investment of cash collateral received is restricted through limitations on credit worthiness, duration, approved investment categories, and borrower limits. Short-term collateral relates to cash collateral received included in cash and cash equivalents and the remainder is included in other asset classes as that collateral is typically reinvested. Aegon earns a share of the spread between the collateral earnings and the rebate paid to the borrower of the securities which is reflected in Income from securities lending programs.
Cash and cash equivalent balances that are not available for use by the group is EUR 141 million (2023: EUR 98 million, 2022: EUR 93 million).
| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Cash and cash equivalents | \n \n | \n\n \n 3,469 | \n \n \n 4,074 | \n \n \n 3,402 | \n
| \n \n Cash classified as Assets held for sale | \n \n | \n\n \n - | \n \n \n - | \n \n \n 5,085 | \n
| \n \n Net cash and cash equivalents | \n \n | \n\n \n 3,469 | \n \n \n 4,074 | \n \n \n 8,486 | \n
| \n \n Summary cash flow statement | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Net cash flows from operating activities | \n \n \n 762 | \n \n \n 864 | \n \n \n 2,672 | \n
| \n \n Net cash flows from investing activities | \n \n \n 300 | \n \n \n \n \n (1,996) \n | \n \n \n 733 | \n
| \n \n Net cash flows from financing activities | \n \n \n \n \n (1,755) \n | \n \n \n \n \n (3,241) \n | \n \n \n \n \n (1,834) \n | \n
| \n \n Net increase / (decrease) in cash and cash equivalents | \n \n \n \n \n (694) \n | \n \n \n \n \n (4,373) \n | \n \n \n 1,570 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Net cash and cash equivalents on December 31, are impacted by: | \n \n | \n\n | \n\n | \n
| \n \n Positive (negative) effects of changes in exchange rates | \n \n \n 88 | \n \n \n \n \n (38) \n | \n \n \n 55 | \n
| \n | \n\n | \n\n \n 2024 | \n |||
| \n \n Investments | \n \n \n Insurance related | \n \n \n Non-Insurance related 1 | \n \n \n Total | \n ||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n|
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n | \n\n | \n
| \n \n Financial assets measured at FVOCI \u2013 with recycling | \n \n \n - | \n \n \n 46,719 | \n \n \n - | \n \n \n 7,958 | \n \n \n 54,677 | \n
| \n \n Financial assets measured at FVOCI \u2013 no recycling | \n \n \n - | \n \n \n 38 | \n \n \n - | \n \n \n 1 | \n \n \n 39 | \n
| \n \n Financial assets measured at amortized cost | \n \n \n - | \n \n \n 8,220 | \n \n \n - | \n \n \n 2,425 | \n \n \n 10,645 | \n
| \n \n Financial assets measured at FVPL \u2013 designated | \n \n \n 117,167 | \n \n \n 1,926 | \n \n \n 23,687 | \n \n \n 77,400 | \n \n \n 220,180 | \n
| \n \n Financial assets measured at FVPL \u2013 mandatory | \n \n \n - | \n \n \n 6,690 | \n \n \n - | \n \n \n 970 | \n \n \n 7,661 | \n
| \n \n Total financial assets, excluding derivatives | \n \n \n 117,167 | \n \n \n 63,593 | \n \n \n 23,687 | \n \n \n 88,754 | \n \n \n 293,202 | \n
| \n \n Investments in real estate | \n \n \n 237 | \n \n \n 57 | \n \n \n 150 | \n \n \n 70 | \n \n \n 514 | \n
| \n \n Total investments | \n \n \n 117,405 | \n \n \n 63,651 | \n \n \n 23,837 | \n \n \n 88,823 | \n \n \n 293,716 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n \n Investments | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Total | \n |||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n||
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Without direct part. | \n \n | \n\n | \n
| \n \n Financial assets measured at FVOCI \u2013 with recycling | \n \n \n - | \n \n \n 44,404 | \n \n \n - | \n \n \n 5,854 | \n \n \n 97 | \n \n \n 50,354 | \n
| \n \n Financial assets measured at FVOCI \u2013 no recycling | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 10 | \n
| \n \n Financial assets measured at amortized cost | \n \n \n - | \n \n \n 7,941 | \n \n \n - | \n \n \n 2,216 | \n \n \n 70 | \n \n \n 10,227 | \n
| \n \n Financial assets measured at FVPL \u2013 designated | \n \n \n 107,714 | \n \n \n 2,078 | \n \n \n 47,759 | \n \n \n 19 | \n \n \n 38,347 | \n \n \n 195,916 | \n
| \n \n Financial assets measured at FVPL \u2013 mandatory | \n \n \n - | \n \n \n 8,889 | \n \n \n - | \n \n \n 386 | \n \n \n 111 | \n \n \n 9,386 | \n
| \n \n Total financial assets, excluding derivatives | \n \n \n 107,714 | \n \n \n 63,321 | \n \n \n 47,759 | \n \n \n 8,474 | \n \n \n 38,626 | \n \n \n 265,894 | \n
| \n \n Investments in real estate | \n \n \n 227 | \n \n \n 55 | \n \n \n 152 | \n \n \n - | \n \n \n 54 | \n \n \n 488 | \n
| \n \n Total investments | \n \n \n 107,941 | \n \n \n 63,376 | \n \n \n 47,911 | \n \n \n 8,474 | \n \n \n 38,680 | \n \n \n 266,382 | \n
| \n \n Financial assets, excluding derivatives, by measurement category | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n \n \n FVOCI | \n \n \n \n \n FVOCI | \n \n \n Amortized | \n \n \n \n \n FVPL | \n \n \n \n \n FVPL | \n \n \n Total | \n \n \n Fair value | \n |
| \n \n Investments where Aegon bears the risk for investment performance | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n - | \n \n \n 39 | \n \n \n - | \n \n \n - | \n \n \n 279 | \n \n \n 317 | \n \n \n 317 | \n
| \n \n Debt securities | \n \n \n 52,211 | \n \n \n - | \n \n \n 36 | \n \n \n 1,400 | \n \n \n 985 | \n \n \n 54,632 | \n \n \n 54,632 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,435 | \n \n \n - | \n \n \n - | \n \n \n 157 | \n \n \n 1,939 | \n \n \n 4,531 | \n \n \n 4,531 | \n
| \n \n Deposits with financial institutions | \n \n \n - | \n \n \n - | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 11 | \n \n \n 11 | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n 10,598 | \n \n \n 82 | \n \n \n - | \n \n \n 10,680 | \n \n \n 9,462 | \n
| \n \n Other | \n \n \n 31 | \n \n \n - | \n \n \n - | \n \n \n 718 | \n \n \n 4,458 | \n \n \n 5,207 | \n \n \n 5,207 | \n
| \n \n Total | \n \n \n 54,677 | \n \n \n 39 | \n \n \n 10,645 | \n \n \n 2,356 | \n \n \n 7,661 | \n \n \n 75,377 | \n \n \n 74,159 | \n
| \n \n Financial assets, excluding derivatives, by measurement category | \n \n | \n\n | \n\n | \n\n \n 2023 | \n |||
| \n \n \n \n FVOCI | \n \n \n \n \n FVOCI | \n \n \n Amortized | \n \n \n \n \n FVPL | \n \n \n \n \n FVPL | \n \n \n Total | \n \n \n Fair value | \n |
| \n \n Investments where Aegon bears the risk for investment performance | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 291 | \n \n \n 300 | \n \n \n 300 | \n
| \n \n Debt securities | \n \n \n 47,191 | \n \n \n - | \n \n \n 52 | \n \n \n 1,538 | \n \n \n 858 | \n \n \n 49,639 | \n \n \n 49,639 | \n
| \n \n Money market and other short-term investments | \n \n \n 3,135 | \n \n \n - | \n \n \n - | \n \n \n 215 | \n \n \n 3,999 | \n \n \n 7,349 | \n \n \n 7,349 | \n
| \n \n Deposits with financial institutions | \n \n \n - | \n \n \n - | \n \n \n 18 | \n \n \n - | \n \n \n - | \n \n \n 18 | \n \n \n 18 | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n 10,157 | \n \n \n - | \n \n \n - | \n \n \n 10,157 | \n \n \n 9,026 | \n
| \n \n Other | \n \n \n 29 | \n \n \n - | \n \n \n - | \n \n \n 773 | \n \n \n 4,239 | \n \n \n 5,040 | \n \n \n 5,040 | \n
| \n \n Total | \n \n \n 50,354 | \n \n \n 10 | \n \n \n 10,227 | \n \n \n 2,526 | \n \n \n 9,386 | \n \n \n 72,504 | \n \n \n 71,372 | \n
In both 2024 and 2023, no significant transactions took place with respect to shares recognized at FVOCI. No dividends were received during 2024 (2023: 0).
| \n \n Financial assets, excluding derivatives, by measurement category | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n FVPL | \n \n \n FVPL | \n |
| \n \n Investments where policyholders bear the risk for investment performance | \n \n | \n\n | \n
| \n \n Shares | \n \n \n 15,198 | \n \n \n 16,191 | \n
| \n \n Debt securities | \n \n \n 6,259 | \n \n \n 6,172 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,541 | \n \n \n 1,346 | \n
| \n \n Unconsolidated investment funds | \n \n \n 192,775 | \n \n \n 167,411 | \n
| \n \n Deposits with financial institutions | \n \n \n 2,052 | \n \n \n 2,271 | \n
| \n \n Total | \n \n \n 217,824 | \n \n \n 193,390 | \n
Of the debt securities, money market, and other short-term investments and loans EUR 6,106 million is current (December 31, 2023: EUR 8,727 million).\u00a0
See note 38 Fair Value\u00a0for information on fair value measurement, including loans that are held at amortized cost.
Where necessary, Aegon applied the fair value option on investments where policyholders bear the risk for investment performance.
In 2024, the Group has not made changes to its business model or reclassified financial assets.
See note 38 Fair Value\u00a0for a summary of all financial assets and financial liabilities measured at fair value through profit or loss. See note 40 Transfers of financial assets for a discussion of collateral received and paid.\u00a0
\n| \n | \n\n | \n\n | \n\n \n 2024 | \n |||||||
| \n \n Derivatives | \n \n \n Derivative assets | \n \n \n Derivative liabilities | \n ||||||||
| \n | \n\n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Total | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Total | \n ||||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n||
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n | \n\n | \n\n \n Direct | \n \n \n Without direct part. | \n \n \n Direct | \n \n | \n\n | \n
| \n \n FVPL - mandatorily | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives not designated in a hedge | \n \n \n 66 | \n \n \n 477 | \n \n \n 53 | \n \n \n 10 | \n \n \n 606 | \n \n \n 157 | \n \n \n 983 | \n \n \n 135 | \n \n \n 56 | \n \n \n 1,331 | \n
| \n \n Derivatives designated as fair value hedges | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Derivatives designated as cash flow hedges | \n \n \n - | \n \n \n 136 | \n \n \n - | \n \n \n - | \n \n \n 136 | \n \n \n - | \n \n \n 1,100 | \n \n \n - | \n \n \n - | \n \n \n 1,100 | \n
| \n \n Derivatives designated as net foreign investment hedges | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 26 | \n \n \n 26 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n 2 | \n
| \n \n Total | \n \n \n 66 | \n \n \n 616 | \n \n \n 53 | \n \n \n 36 | \n \n \n 771 | \n \n \n 157 | \n \n \n 2,085 | \n \n \n 135 | \n \n \n 58 | \n \n \n 2,435 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Segregated by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives where Aegon bears the risk for financial performance | \n \n \n - | \n \n \n 616 | \n \n \n - | \n \n \n 26 | \n \n \n 643 | \n \n \n - | \n \n \n 2,085 | \n \n \n - | \n \n \n 44 | \n \n \n 2,129 | \n
| \n \n Derivatives where the policyholder bears the risk for financial performance | \n \n \n 66 | \n \n \n - | \n \n \n 53 | \n \n \n 10 | \n \n \n 129 | \n \n \n 157 | \n \n \n - | \n \n \n 135 | \n \n \n 14 | \n \n \n 306 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n ||||
| \n \n Derivatives | \n \n \n Derivative assets | \n \n \n Derivative liabilities | \n ||||||||
| \n | \n\n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Total | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Total | \n ||||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n||
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n | \n\n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n | \n\n | \n
| \n \n FVPL - mandatorily | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives not designated in a hedge | \n \n \n 35 | \n \n \n 1,171 | \n \n \n 25 | \n \n \n 7 | \n \n \n 1,238 | \n \n \n 296 | \n \n \n 823 | \n \n \n 300 | \n \n \n 47 | \n \n \n 1,466 | \n
| \n \n Derivatives designated as fair value hedges | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Derivatives designated as cash flow hedges | \n \n \n - | \n \n \n 147 | \n \n \n - | \n \n \n - | \n \n \n 147 | \n \n \n - | \n \n \n 961 | \n \n \n - | \n \n \n - | \n \n \n 961 | \n
| \n \n Derivatives designated as net foreign investment hedges | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 39 | \n \n \n 39 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 48 | \n \n \n 48 | \n
| \n \n Total | \n \n \n 35 | \n \n \n 1,322 | \n \n \n 25 | \n \n \n 46 | \n \n \n 1,429 | \n \n \n 296 | \n \n \n 1,788 | \n \n \n 300 | \n \n \n 96 | \n \n \n 2,479 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Segregated by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives where Aegon bears the risk for financial performance | \n \n \n - | \n \n \n 1,322 | \n \n \n - | \n \n \n 40 | \n \n \n 1,361 | \n \n \n - | \n \n \n 1,788 | \n \n \n - | \n \n \n 90 | \n \n \n 1,878 | \n
| \n \n Derivatives where the policyholder bears the risk for financial performance | \n \n \n 35 | \n \n \n - | \n \n \n 25 | \n \n \n 7 | \n \n \n 67 | \n \n \n 296 | \n \n \n - | \n \n \n 300 | \n \n \n 5 | \n \n \n 601 | \n
Where Aegon hedges minimum guarantees embedded in VFA products, the change in the fulfillment cash flows relating to the\u00a0hedged position is recognized in income rather than being booked to the Contractual Service Margin. In 2024, the amount booked to income was EUR 2,020 million (2023: EUR 1,481 million). For more details see note 29.5 Risk mitigation\u00a0and for the split between P&L and OCI, see note 9 Insurance net investment result.
Main reason of market value decrease on derivatives was increasing interest rates in 2024.\u00a0
The derivatives are measured at fair value through profit or loss in accordance with IFRS 9. For more details\u00a0on fair value measurement of derivatives see note 38 Fair value.
\n| \n | \n\n \n Derivative asset | \n \n \n Derivative liability | \n ||
| \n \n Derivatives not designated in a hedge \u2013 where Aegon bears the risk | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Derivatives held as an economic hedge | \n \n \n 477 | \n \n \n 1,171 | \n \n \n 954 | \n \n \n 812 | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n - | \n \n \n 71 | \n \n \n 53 | \n
| \n \n Total | \n \n \n 477 | \n \n \n 1,171 | \n \n \n 1,025 | \n \n \n 865 | \n
Aegon utilizes derivative instruments as a part of its asset-liability risk management practices. The derivatives held for risk management purposes are classified as economic hedges to the extent that they do not qualify for hedge accounting, or that Aegon has elected not to apply hedge accounting. The economic hedges of certain exposures relate to an existing asset, liability, or future reinvestment risk. In all cases, these are in accordance with internal risk guidelines and are closely monitored for continuing compliance.
Bifurcated embedded derivatives that are not closely related to the host contracts have been bifurcated and recorded at fair value in the consolidated statement of financial position. These bifurcated embedded derivatives are embedded in various institutional products.
\nAegon has entered into free-standing credit derivative transactions. The positions outstanding at the end of the year were:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n \n Credit derivative disclosure by quality | \n \n \n Notional | \n \n \n Fair value | \n \n \n Notional | \n \n \n Fair value | \n
| \n \n AAA | \n \n \n 4 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n
| \n \n AA | \n \n \n 111 | \n \n \n 1 | \n \n \n 97 | \n \n \n 1 | \n
| \n \n A | \n \n \n 1,233 | \n \n \n 16 | \n \n \n 1,021 | \n \n \n 16 | \n
| \n \n BBB | \n \n \n 2,310 | \n \n \n 50 | \n \n \n 2,746 | \n \n \n 52 | \n
| \n \n BB | \n \n \n 141 | \n \n \n 1 | \n \n \n 119 | \n \n \n 1 | \n
| \n \n B or lower | \n \n \n 51 | \n \n \n - | \n \n \n 57 | \n \n \n - | \n
| \n \n Total | \n \n \n 3,851 | \n \n \n 68 | \n \n \n 4,043 | \n \n \n 71 | \n
The\u00a0use of credit default swaps (CDS) is to create synthetic bonds. Aegon US uses credit default swaps to replicate or synthesize bonds, this is done via Replication (Synthetic Asset) Transactions (RSAT).\u00a0 This is an insurance industry concept that\u00a0allows insurance companies to use a derivative in conjunction with a cash investment to reproduce the investment characteristics of an otherwise permissible investment. There are three main types of RSAT transactions:
single asset replications
RSATs involving indices
RSATs involving baskets of assets
In each case the approach allows Aegon US to access credit risk in derivative form by using credit default swaps in conjunction with cash or sovereign bonds to replicate (synthetically create) corporate bonds. \u00a0The table above provides a\u00a0breakdown of the credit quality of these credit derivatives.
\nAegon's fair value hedges include interest rate swaps, swaptions, equity and fixed income total return swaps, equity options, equity futures, bond futures and variance swaps that are used to protect against changes in the fair value of interest rate and equity-sensitive instruments or liabilities. Gains and losses on derivatives designated under fair value hedge accounting are recognized in the income statement. The effective portion of the fair value change on the hedged item is also recognized in the income statement. As a result, only the net accounting ineffectiveness has an impact on the net result.
Aegon has entered into interest rate swap agreements that effectively convert certain fixed-rate assets and liabilities to a\u00a0floating-rate basis. These hedges are used for portfolio management to better match assets to liabilities or to protect the\u00a0value of the hedged item from interest rate movements. These agreements involve the payment or receipt of fixed-rate interest amounts in exchange for floating-rate interest amounts over the life of the agreement without the exchange of the underlying principal amounts. Some of the arrangements use forward starting swaps to better match the duration of assets and liabilities.
Aegon has entered into cross-currency interest rate swap agreements that effectively convert certain foreign currency fixed-rate and floating-rate assets and liabilities to US dollar floating-rate assets and liabilities. These agreements involve the exchange of the underlying principal amounts.
\nAegon has entered primarily into interest rate swap agreements that effectively convert certain variable-rate assets and liabilities to a fixed-rate basis in order to match the cash flows of the assets and liabilities within Aegon\u2019s portfolio more closely. These agreements involve the payment or receipt of variable-rate interest amounts in exchange for fixed-rate interest amounts over the life of the agreement without the exchange of the underlying principal amounts. Aegon hedges its exposure to the variability of future cash flows from the interest rate movements for terms up to 20 years for hedges converting existing floating-rate assets and liabilities to fixed-rate assets.
Aegon uses forward-starting interest rate swap agreements to hedge the variability in future cash flows associated with the forecasted purchase of fixed-income assets. These agreements reduce the impact of future interest rate changes on the forecasted transaction. Fair value adjustments for these interest rate swaps are deferred and recorded in equity until the occurrence of the forecasted transaction at which time the interest rate swaps will be terminated. The accumulated gain or loss in equity will be amortized into investment income as the acquired asset affects income. Aegon hedges its exposure to the variability of future cash flows from interest rate movements for terms up to 19 years. The cash flows from these hedging instruments are expected to affect the profit and loss for approximately the next 38 years. For the year ended December 31, 2024, the contracts for which cash flow hedge accounting was terminated resulted in deferred gains of EUR 55 million (2023: EUR 75 million) that are recognized directly in equity to be reclassified as net result during the period when the cash flows occur of the underlying hedged items. In 2024, none of Aegon's active cash flow hedges were discontinued as it was highly probable that the original forecasted transactions would occur by the end of the originally specified time period documented at the inception of the hedging relationship. All reported discontinued cash flow hedges are a product of completed forecasted transactions at which point the hedges were unwound.\u00a0\u200b\u200b\u200b\u200b\u200b\u200b\u200bAegon projects investment needs many years into the future in order to support the insurance liabilities and pay all contractual obligations arising from the policies in force today.
In addition, Aegon also makes use of cross-currency swaps to convert variable or fixed foreign currency cash flows into fixed cash flows in local currencies. The cash flows from these hedging instruments are expected to occur over the next 32 years. These agreements involve the exchange of the underlying principal amounts.
| \n \n \n \n Hedge ineffectiveness and reclassification of gains (losses) \n | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Hedge ineffectiveness on cash flow hedges | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (3) \n | \n
| \n \n Gains (losses) reclassified from equity into the income statement | \n \n \n 42 | \n \n \n 20 | \n \n \n \n \n (102) \n | \n
| \n \n Expected deferred gain (loss) to be reclassified from equity into net result during the next 12 months | \n \n \n 88 | \n \n \n 114 | \n \n \n 116 | \n
The periods when the contractual, undiscounted cash flows are expected to occur are as follows:
| \n | \n\n \n < 1yr | \n \n \n 1 < 2 yrs | \n \n \n 2 < 3 yrs | \n \n \n 3 < 4 yrs | \n \n \n 4 < 5 yrs | \n \n \n > 5 yrs | \n \n \n Total 2024 | \n
| \n \n Cash inflows | \n \n \n 582 | \n \n \n 425 | \n \n \n 380 | \n \n \n 323 | \n \n \n 286 | \n \n \n 6,587 | \n \n \n 8,583 | \n
| \n \n Cash outflows | \n \n \n 475 | \n \n \n 360 | \n \n \n 323 | \n \n \n 259 | \n \n \n 246 | \n \n \n 11,644 | \n \n \n 13,308 | \n
| \n \n Net cash flows | \n \n \n 107 | \n \n \n 65 | \n \n \n 57 | \n \n \n 64 | \n \n \n 40 | \n \n \n \n \n (5,057) \n | \n \n \n \n \n (4,725) \n | \n
| \n | \n\n \n < 1yr | \n \n \n 1 < 2 yrs | \n \n \n 2 < 3 yrs | \n \n \n 3 < 4 yrs | \n \n \n 4 < 5 yrs | \n \n \n > 5 yrs | \n \n \n Total 2023 | \n
| \n \n Cash inflows | \n \n \n 282 | \n \n \n 253 | \n \n \n 260 | \n \n \n 286 | \n \n \n 341 | \n \n \n 7,509 | \n \n \n 8,930 | \n
| \n \n Cash outflows | \n \n \n 560 | \n \n \n 224 | \n \n \n 244 | \n \n \n 266 | \n \n \n 271 | \n \n \n 12,248 | \n \n \n 13,813 | \n
| \n \n Net cash flows | \n \n \n \n \n (277) \n | \n \n \n 28 | \n \n \n 16 | \n \n \n 19 | \n \n \n 70 | \n \n \n \n \n (4,740) \n | \n \n \n \n \n (4,883) \n | \n
On 30 September 2024, the remaining synthetic LIBOR rates were published for the last time and LIBOR came to an end. Before this, all derivative financial instruments using USD LIBOR and GBP LIBOR as a benchmark rate, transitioned to an alternative benchmark rate.
\nAegon funds its investments in insurance subsidiaries with a mixture of debt and equity. Aegon aims to denominate debt funding in the same currency as the functional currency of the investment. Investments outside the Eurozone, the United\u00a0States and the United Kingdom are funded in euros. When the debt funding of investments is not in the functional currency of the investment, Aegon uses derivatives to swap the currency exposure of the debt instrument to the appropriate functional currency. This policy will ensure that total capital will reflect currency movements without distorting debt to shareholders\u2019 equity ratios. Aegon utilizes various financial instruments as the designated hedging instruments of its foreign investments. These\u00a0instruments include long-term and short-term borrowings, short-term debts to credit institutions, cross-currency swap contracts, and forward foreign exchange contracts.
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized directly in OCI; the gains or losses relating to the ineffective portion is recognized immediately in the P&L. Gains and losses accumulated in equity are included in the P&L when the foreign operation is disposed of as part of the gain or loss of the disposal.
\nThe following table sets out the maturity profile and average price/rate of the hedging instruments used in Aegon\u2019s hedging strategies:
| \n \n Notionals are in EUR million | \n \n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n Maturity | \n ||||
| \n | \n\n \n Up to 1 month | \n \n \n 1-3 months | \n \n \n 3-12 months | \n \n \n 1-5 years | \n \n \n > 5 years | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n 22 | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,352 | \n
| \n \n Average fixed interest rate | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3.06% | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 190 | \n \n \n 1,013 | \n
| \n \n Average exchange rate EUR/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.13 | \n \n \n 1.13 | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate USD/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.88 | \n \n \n 0.89 | \n
| \n \n Average exchange rate USD/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.74 | \n \n \n 0.76 | \n
| \n \n Average exchange rate GBP/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate GBP/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.35 | \n \n \n 1.32 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n 22 | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/USD | \n \n \n 0.97 | \n \n \n 0.97 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n 1.21 | \n \n \n 1.21 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Notionals are in EUR million | \n \n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n \n Maturity | \n ||||
| \n | \n\n \n Up to 1 month | \n \n \n 1-3 months | \n \n \n 3-12 months | \n \n \n 1-5 years | \n \n \n > 5 years | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 88 | \n \n \n 21 | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,540 | \n
| \n \n Average fixed interest rate | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2.83% | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 121 | \n \n \n 835 | \n
| \n \n Average exchange rate EUR/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.16 | \n \n \n 1.13 | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate USD/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.87 | \n \n \n 0.88 | \n
| \n \n Average exchange rate USD/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.74 | \n \n \n 0.76 | \n
| \n \n Average exchange rate GBP/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.35 | \n \n \n 1.32 | \n
| \n \n Average exchange rate GBP/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n \n \n (8) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/USD | \n \n \n 0.91 | \n \n \n 0.91 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n 1.15 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
The following table contains details of the hedging instruments used in Aegon\u2019s hedging strategies that are booked under line item \"Derivatives\" in the consolidated statement of financial position:
| \n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n | \n\n \n Carrying amounts | \n \n | \n|
| \n | \n\n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Changes in fair value used for calculating hedge ineffectiveness | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 32 | \n \n \n - | \n \n \n 3 | \n \n \n 2 | \n
| \n \n Foreign exchange contracts | \n \n \n 9 | \n \n \n 3 | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 5,352 | \n \n \n 12 | \n \n \n 1,092 | \n \n \n \n \n (106) \n | \n
| \n \n Foreign exchange contracts | \n \n \n 1,202 | \n \n \n 124 | \n \n \n 8 | \n \n \n 15 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n 27 | \n \n \n 26 | \n \n \n 2 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n | \n\n \n Carrying amounts | \n \n | \n|
| \n | \n\n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Changes in fair value used for calculating hedge ineffectiveness | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 109 | \n \n \n 1 | \n \n \n 4 | \n \n \n - | \n
| \n \n Foreign exchange contracts | \n \n \n 8 | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 5,540 | \n \n \n 42 | \n \n \n 950 | \n \n \n 106 | \n
| \n \n Foreign exchange contracts | \n \n \n 956 | \n \n \n 105 | \n \n \n 11 | \n \n \n \n \n (44) \n | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n \n \n (9) \n | \n \n \n 39 | \n \n \n 48 | \n \n \n - | \n
The following table contains details of the hedged exposures covered by Aegon\u2019s hedging strategies that are booked under line item \"Derivatives\" in the consolidated statement of financial position:
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n Carrying amounts | \n \n \n Accumulated amount of fair value adjustments on the hedged item | \n \n | \n\n | \n||
| \n | \n\n \n Assets | \n \n \n Liabilities | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Balance sheet line item | \n \n \n Change in fair value of hedged item for ineffectiveness assessment | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Corporate Debt Hedge Program | \n \n \n - | \n \n \n 66 | \n \n \n - | \n \n \n \n \n (19) \n | \n \n \n Trust pass-through securities | \n \n \n 3 | \n
| \n \n Offshore Liability Hedge Program | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 2 | \n \n \n Investment contracts without discretionary participating features | \n \n \n - | \n
| \n \n Synthetic Asset Fair value hedges | \n \n \n 35 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n Investments | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n \n Carrying amounts | \n \n \n Accumulated amount of fair value adjustments on the hedged item | \n \n | \n\n | \n||
| \n | \n\n \n Assets | \n \n \n Liabilities | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Balance sheet line item | \n \n \n Change in fair value of hedged item for ineffectiveness assessment | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Corporate Debt Hedge Program | \n \n \n - | \n \n \n 67 | \n \n \n - | \n \n \n \n \n (13) \n | \n \n \n Trust pass-through securities | \n \n \n 3 | \n
| \n \n Offshore Liability Hedge Program | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 2 | \n \n \n Investment contracts without discretionary participating features | \n \n \n - | \n
| \n \n Synthetic Asset Fair value hedges | \n \n \n 34 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n Investments | \n \n \n 1 | \n
| \n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n | \n\n \n Cash flow hedge / currency translation reserve | \n |
| \n | \n\n \n Change in fair value of hedged item for ineffectiveness assessment | \n \n \n Continuing hedges | \n \n \n Discontinued hedges | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n
| \n \n Synthetic Asset Cash flow hedges | \n \n \n \n \n (215) \n | \n \n \n 189 | \n \n \n - | \n
| \n \n Life & Health Liability Investment Risk Hedge Program | \n \n \n \n \n (111) \n | \n \n \n \n \n (483) \n | \n \n \n 126 | \n
| \n \n Long Term Care (LTC) Liability Hedge Program | \n \n \n \n \n (21) \n | \n \n \n \n \n (38) \n | \n \n \n 1,095 | \n
| \n \n IMD Payout Hedge | \n \n \n - | \n \n \n - | \n \n \n 31 | \n
| \n \n TRS (Vivendi) Hedge | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n
| \n \n Investments in foreign operations | \n \n \n - | \n \n \n \n \n (383) \n | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n | \n\n \n Cash flow hedge / currency translation reserve | \n |
| \n | \n\n \n Change in fair value of hedged item for ineffectiveness assessment | \n \n \n Continuing hedges | \n \n \n Discontinued hedges | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n
| \n \n Synthetic Asset Cash flow hedges | \n \n \n 11 | \n \n \n 87 | \n \n \n - | \n
| \n \n Life & Health Liability Investment Risk Hedge Program | \n \n \n 5 | \n \n \n \n \n (348) \n | \n \n \n 232 | \n
| \n \n Long Term Care (LTC) Liability Hedge Program | \n \n \n 1 | \n \n \n \n \n (15) \n | \n \n \n 1,085 | \n
| \n \n IMD Payout Hedge | \n \n \n - | \n \n \n - | \n \n \n 29 | \n
| \n \n TRS (Vivendi) Hedge | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n
| \n \n Investments in foreign operations | \n \n \n - | \n \n \n \n \n (324) \n | \n \n \n - | \n
If there is a mismatch between critical terms of hedging instruments and hedged items, changes in fair value may not be offset. The qualitative hedge effectiveness test assures all critical terms align.
Counterparty default: If the counterparty fails to fulfill the contract, the hedge will not be highly effective. All derivatives in\u00a0this program are collateralized or cleared, so the impact from this credit risk will not dominate the hedge relationship.
Counterparty default: If the counterparty fails to fulfill the contract, the hedge will not be highly effective. All derivatives in\u00a0this program are collateralized or cleared, so the impact from this credit risk will not dominate the hedge relationship.
Expected future transactions fail to occur as projected: the hedging instrument (i.e. FSS) terms are already known and easily valued. However, the hedged item consists of one or more forecasted asset purchases for which we are unable to project exactly the dates, coupon rates, and other underlying terms. Given these unknown variables in the hedged item, for the period in which the FSS remains in inventory and the forecasted transactions have not been completed, the hedged item portion of this relationship will be setup assuming identical dates and rates as outlined in the hedging instrument.
When the forecasted transaction (i.e. bond purchase) is completed and the terms of the underlying hedged item are known, hedge ineffectiveness would possibly arise if the timing of the asset being purchased differs from the unwind date of the swaps designated as the hedging instrument, or the coupon rate of the asset being purchased differs from the coupon rate on the receive leg of the swap, or a combination of both.\u00a0
The hedge ineffectiveness would possibly arise if the timing of the asset being purchased differs from the unwind date of the swaps designated as the hedging instrument, or the coupon rate of the asset being purchased differs from the coupon rate on the receive leg of the swap, or a combination of both.
Mismatch of critical terms: If critical terms do not match between the hedged item and the hedged instrument, hedge ineffectiveness can arise.\u00a0
Counterparty default: If the counterparty fails to fulfill the contract, the hedge will not be highly effective. All derivatives in\u00a0this program are collateralized or cleared, so the impact from this credit risk will not dominate the hedge relationship.
The following table contains information regarding the effectiveness of the hedging relationships designated by Aegon, as\u00a0well\u00a0as the impacts on profit or loss and other comprehensive income that are booked under line item \"Results from financial transactions\" (including the reclassified amount where applicable):
| \n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n | \n\n | \n\n \n Amounts reclassified from reserves to P&L as | \n ||
| \n | \n\n \n Gains / (loss) recognized in OCI | \n \n \n Hedge ineffectiveness recognized in P&L | \n \n \n P&L line item that includes hedge ineffectiveness | \n \n \n hedged cash flows will no longer occur | \n \n \n hedged item affected P&L | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n n.a. | \n \n \n \n \n (2) \n | \n \n \n Results from financial transactions | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Foreign exchange contracts | \n \n \n n.a. | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n - | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
| \n \n Foreign exchange contracts | \n \n \n - | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n - | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n | \n\n | \n\n \n Amounts reclassified from reserves to P&L as | \n ||
| \n | \n\n \n Gains / (loss) recognized in OCI | \n \n \n Hedge ineffectiveness recognized in P&L | \n \n \n P&L line item that includes hedge ineffectiveness | \n \n \n hedged cash flows will no longer occur | \n \n \n hedged item affected P&L | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n n.a. | \n \n \n \n \n (3) \n | \n \n \n Results from financial transactions | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Foreign exchange contracts | \n \n \n n.a. | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n - | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
| \n \n Foreign exchange contracts | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n - | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
Aegon recognizes the separate line items: \"Changes in cash flow hedging reserve\" and\u00a0 \"Movement in foreign currency translation and net foreign investment hedging reserves\" in the statement of comprehensive income related to hedges of net\u00a0positions gains and losses. Refer to note 25 Shareholders' equity for more details on these items.
\nThe following table shows \u00a0reconciliation of nominal amount and fair value of credit derivatives that have been used to\u00a0manage the credit risk of financial instruments designated as FVPL:
| \n | \n\n \n CDSs | \n |
| \n \n Credit derivative disclosure by quality | \n \n \n Nominal amount | \n \n \n Fair value | \n
| \n \n On January 1, 2024 | \n \n \n 4,043 | \n \n \n 71 | \n
| \n \n Increase/(Decrease) during the year | \n \n \n \n \n (192) \n | \n \n \n \n \n (2) \n | \n
| \n \n On December 31, 2024 | \n \n \n 3,851 | \n \n \n 68 | \n
| \n | \n\n \n CDSs | \n |
| \n \n Credit derivative disclosure by quality | \n \n \n Nominal amount | \n \n \n Fair value | \n
| \n \n On January 1, 2023 | \n \n \n 4,820 | \n \n \n 28 | \n
| \n \n Increase/(Decrease) during the year | \n \n \n \n \n (778) \n | \n \n \n 43 | \n
| \n \n On December 31, 2023 | \n \n \n 4,043 | \n \n \n 71 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Loans to associates | \n \n \n - | \n \n \n 8 | \n
| \n \n Receivables from policyholders | \n \n \n 118 | \n \n \n 137 | \n
| \n \n Receivables from brokers and agents | \n \n \n 270 | \n \n \n 239 | \n
| \n \n Cash outstanding from assets sold | \n \n \n 176 | \n \n \n 133 | \n
| \n \n Trade receivables | \n \n \n 654 | \n \n \n 178 | \n
| \n \n Cash collateral | \n \n \n 515 | \n \n \n 516 | \n
| \n \n Income tax receivable | \n \n \n 286 | \n \n \n 172 | \n
| \n \n Other | \n \n \n 1,828 | \n \n \n 2,194 | \n
| \n \n Expected credit losses | \n \n \n \n \n (18) \n | \n \n \n \n \n (10) \n | \n
| \n \n On December 31 | \n \n \n 3,830 | \n \n \n 3,567 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 3,736 | \n \n \n 3,564 | \n
| \n \n Non-current | \n \n \n 94 | \n \n \n 2 | \n
With the exception of receivables from reinsurers, the receivables balances presented above are mostly not externally rated.
The movements in the expected credit losses for receivables during the year were as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n \n \n (10) \n | \n \n \n \n \n (129) \n | \n
| \n \n Expected credit losses | \n \n \n \n \n (9) \n | \n \n \n \n \n (29) \n | \n
| \n \n Other movements | \n \n \n 1 | \n \n \n 148 | \n
| \n \n On December 31 | \n \n \n \n \n (18) \n | \n \n \n \n \n (10) \n | \n
| \n | \n\n \n Perpetual contingent convertible securities | \n \n \n Junior perpetual capital securities | \n \n \n Perpetual cumulative subordinated bonds | \n \n \n Share options and incentive plans 1 | \n \n \n Total | \n
| \n \n On January 1, 2024 | \n \n \n 500 | \n \n \n 923 | \n \n \n 454 | \n \n \n 74 | \n \n \n 1,951 | \n
| \n \n Shares granted / Share options cost incurred | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 49 | \n \n \n 49 | \n
| \n \n Shares vested / Share options forfeited | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n \n \n (28) \n | \n
| \n \n On December 31, 2024 | \n \n \n 500 | \n \n \n 923 | \n \n \n 454 | \n \n \n 95 | \n \n \n 1,972 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n 500 | \n \n \n 923 | \n \n \n 454 | \n \n \n 66 | \n \n \n 1,943 | \n
| \n \n Shares granted / Share options cost incurred | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 33 | \n \n \n 33 | \n
| \n \n Shares vested / Share options forfeited | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (25) \n | \n \n \n \n \n (25) \n | \n
| \n \n On December 31, 2023 | \n \n \n 500 | \n \n \n 923 | \n \n \n 454 | \n \n \n 74 | \n \n \n 1,951 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2022 | \n \n \n 500 | \n \n \n 1,352 | \n \n \n 454 | \n \n \n 57 | \n \n \n 2,363 | \n
| \n \n Shares granted / Share options cost incurred | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 32 | \n \n \n 32 | \n
| \n \n Shares vested / Share options forfeited | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n \n \n (23) \n | \n
| \n \n Securities redeemed | \n \n \n - | \n \n \n \n \n (429) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (429) \n | \n
| \n \n On December 31, 2022 | \n \n \n 500 | \n \n \n 923 | \n \n \n 454 | \n \n \n 66 | \n \n \n 1,943 | \n
| \n \n Perpetual contingent convertible securities | \n \n \n Coupon rate | \n \n \n Coupon date | \n \n \n Year of next call | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n EUR 500 million | \n \n \n 5.625% 1 | \n \n \n Semi-annually, April 15 | \n \n \n 2029 | \n \n \n 500 | \n \n \n 500 | \n \n \n 500 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 500 | \n \n \n 500 | \n \n \n 500 | \n
The securities have been issued at par and have subordination provisions, rank junior to all other liabilities and senior to\u00a0shareholders' equity only. The conditions of the securities contain certain provisions for coupon payment deferral. Although\u00a0the securities have no stated maturity, Aegon has the right to call the securities for redemption at par for the first time between April 15, 2029 and October 15, 2029 and every reset date (October 15, with five-year intervals) thereafter.
| \n \n Junior perpetual capital securities | \n \n \n Coupon rate | \n \n \n Coupon date | \n \n \n Year of next call | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n USD 500 million | \n \n \n floating CMS rate 1 | \n \n \n Quarterly, July 15 | \n \n \n 2025 | \n \n \n 402 | \n \n \n 402 | \n \n \n 402 | \n
| \n \n EUR 950 million 3 | \n \n \n floating DSL rate 2 | \n \n \n Quarterly, July 15 | \n \n \n 2025 | \n \n \n 521 | \n \n \n 521 | \n \n \n 521 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 923 | \n \n \n 923 | \n \n \n 923 | \n
The interest rate exposure on some of these securities has been swapped to a SOFR- or EURIBOR- based yield.
The securities have been issued at par. The securities have subordination provisions, rank junior to all other liabilities and\u00a0senior to shareholders' equity only. The conditions of the securities contain certain provisions for coupon payment deferral and, in situations under Aegon's control, mandatory coupon payment events. Although the securities\u00a0have no stated maturity, Aegon has the right to call the securities for redemption at par for the first time on the coupon date\u00a0in the years as\u00a0specified, or on any coupon payment date thereafter.
| \n \n Perpetual cumulative subordinated bonds | \n \n \n Coupon rate | \n \n \n Coupon date | \n \n \n Year of next call | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n EUR 114 million | \n \n \n 1.506% 1, 4 | \n \n \n Annually, June 8 | \n \n \n 2025 | \n \n \n 114 | \n \n \n 114 | \n \n \n 114 | \n
| \n \n EUR 136 million | \n \n \n 1.425% 2, 4 | \n \n \n Annually, October 14 | \n \n \n 2028 | \n \n \n 136 | \n \n \n 136 | \n \n \n 136 | \n
| \n \n EUR 203 million | \n \n \n 0.496% 3, 4 | \n \n \n Annually, March 4 | \n \n \n 2031 | \n \n \n 203 | \n \n \n 203 | \n \n \n 203 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 454 | \n \n \n 454 | \n \n \n 454 | \n
These bonds have the same subordination provisions as dated subordinated debt. In addition, the conditions of the bonds contain provisions for coupon payment deferral\u200b\u200b\u200b\u200b\u200b\u200b\u200b.\u00a0Although the bonds have no stated maturity, Aegon has the right to call the\u00a0bonds for redemption at par for the first time on the coupon date in the year of next call.
\n| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n Year of next call | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Fixed to floating subordinated notes | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n EUR 700 million | \n \n \n 4% 2 | \n \n \n Annually, April 25 | \n \n \n 2014/44 | \n \n \n - | \n \n \n - | \n \n \n 700 | \n
| \n \n USD 800 million | \n \n \n 5.5% 3 | \n \n \n Semi-annually, April 11 | \n \n \n 2018/48 | \n \n \n 2028 | \n \n \n 770 | \n \n \n 718 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fixed subordinated notes | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n USD 925 million 1 | \n \n \n 5.1% | \n \n \n Quarterly, March 15 | \n \n \n 2019/49 | \n \n \n 2025 | \n \n \n 883 | \n \n \n 826 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n | \n\n \n 1,653 | \n \n \n 2,244 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value of subordinated borrowings | \n \n | \n\n | \n\n | \n\n | \n\n \n 1,490 | \n \n \n 2,122 | \n
Effective April 25, 2024, Aegon redeemed the EUR 700 million fixed-to-floating subordinated notes.\u00a0
These securities are subordinated and rank senior to the junior perpetual capital securities and the perpetual contingent\u00a0convertible securities, equally with the perpetual cumulative subordinated bonds and junior to all other liabilities. The\u00a0conditions of the securities contain certain provisions for coupon payment deferral\u200b\u200b\u200b\u200b\u200b\u200b\u200b. There have been no defaults or breaches of conditions during the period.
\n| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n Year of next call 2 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n USD 225 million 1 | \n \n \n 7.65% | \n \n \n Semi-annually, December 1 | \n \n \n 1996/2026 | \n \n \n n.a. | \n \n \n 66 | \n \n \n 67 | \n
| \n \n USD 190 million 1 | \n \n \n 7.625% | \n \n \n Semi-annually, November 15 | \n \n \n 1997/2037 | \n \n \n n.a. | \n \n \n 47 | \n \n \n 44 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n | \n\n \n 113 | \n \n \n 111 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value of trust pass-through securities | \n \n | \n\n | \n\n | \n\n | \n\n \n 133 | \n \n \n 125 | \n
Trust pass-through securities are securities through which the holder participates in a trust. The assets of these trusts consist of junior subordinated deferrable interest debentures issued by Transamerica Corporation. The trust pass-through securities carry provisions with regard to deferral of distributions for extension periods up to a maximum of 10 consecutive semi-annual periods. The trust pass-through securities are subordinated to all other unsubordinated borrowings and liabilities of Transamerica Corporation.\u00a0
There were no defaults or breaches of conditions during the period.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 10,222 | \n \n \n 9,597 | \n
| \n \n Deposits | \n \n \n 1,595 | \n \n \n 1,606 | \n
| \n \n Withdrawals | \n \n \n \n \n (1,236) \n | \n \n \n \n \n (1,405) \n | \n
| \n \n Interest credited | \n \n \n 288 | \n \n \n 221 | \n
| \n \n Net exchange differences | \n \n \n 755 | \n \n \n \n \n (345) \n | \n
| \n \n Transfer to/from other headings | \n \n \n 1,038 | \n \n \n 567 | \n
| \n \n Other | \n \n \n \n \n (72) \n | \n \n \n \n \n (18) \n | \n
| \n \n On December 31 | \n \n \n 12,592 | \n \n \n 10,222 | \n
| \n \n Investment contracts consist of the following: | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Institutional guaranteed products | \n \n \n 182 | \n \n \n 169 | \n
| \n \n Fixed annuities | \n \n \n 12,378 | \n \n \n 10,024 | \n
| \n \n Other | \n \n \n 32 | \n \n \n 29 | \n
| \n \n On December 31 | \n \n \n 12,592 | \n \n \n 10,222 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 65,044 | \n \n \n 55,631 | \n
| \n \n Gross premium and deposits \u2013 existing and new business | \n \n \n 14,932 | \n \n \n 12,648 | \n
| \n \n Withdrawals | \n \n \n \n \n (11,807) \n | \n \n \n \n \n (9,840) \n | \n
| \n \n Interest credited | \n \n \n 8,467 | \n \n \n 7,636 | \n
| \n \n Fund charges released | \n \n \n \n \n (367) \n | \n \n \n \n \n (313) \n | \n
| \n \n Net exchange differences | \n \n \n 3,868 | \n \n \n \n \n (40) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (1,060) \n | \n \n \n \n \n (680) \n | \n
| \n \n Other | \n \n \n 1 | \n \n \n 2 | \n
| \n \n On December 31 | \n \n \n 79,078 | \n \n \n 65,044 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Capital funding | \n \n \n 1,533 | \n \n \n 763 | \n
| \n \n Operational funding | \n \n \n 1,480 | \n \n \n 1,593 | \n
| \n \n On December 31 | \n \n \n 3,013 | \n \n \n 2,356 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 37 | \n \n \n 32 | \n
| \n \n Non-current | \n \n \n 2,976 | \n \n \n 2,325 | \n
| \n \n On December 31 | \n \n \n 3,013 | \n \n \n 2,356 | \n
| \n | \n\n | \n\n | \n
| \n \n Fair value of borrowings | \n \n \n 3,076 | \n \n \n 2,459 | \n
Aegon\u2019s borrowings are defined separately as capital funding and operational funding. Capital funding includes debt securities that are issued for general corporate purposes and for capitalizing its business units. Capital funding is part of the Company\u2019s total capitalization that is used for financing its subsidiaries and the cash held at the holding company. Operational funding includes debt securities that are issued for financing of dedicated pools of assets. These assets are either legally segregated or tracked as separate portfolios.
The difference between the contractually required payment at the maturity date and the carrying amount of the borrowings amounted to EUR 8 million positive (2023: EUR 6 million positive).
\nA detailed composition of capital funding is included in the following table:
| \n \n \n \n (sorted at maturity) \n | \n \n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n USD 760 million Senior Unsecured Notes | \n \n \n 5.500% | \n \n \n Semi-annually, April 16 | \n \n \n 2024 / 27 | \n \n \n 731 | \n \n \n - | \n
| \n \n GBP 250 million Medium-Term Notes | \n \n \n 6.125% | \n \n \n December 15 | \n \n \n 1999 / 31 | \n \n \n 301 | \n \n \n 287 | \n
| \n \n GBP 400 million Senior Unsecured Notes | \n \n \n 6.625% | \n \n \n Semi-annually, December 16 | \n \n \n 2009 / 39 | \n \n \n 480 | \n \n \n 457 | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n \n 20 | \n \n \n 18 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 1,533 | \n \n \n 763 | \n
In 2024, capital funding increased by EUR 770 million mainly due to the issuance of EUR 700 million (USD 760 million) of senior unsecured notes with a fixed coupon of 5.5% and a tenor of three years. Net proceeds from this issuance were used for\u00a0general corporate purposes, including the redemption of the EUR 700 million of fixed-to-floating subordinated notes. The\u00a0notes were issued by Aegon Funding Company LLC (AFC) and was guaranteed on a senior unsecured basis by Aegon\u00a0Ltd. The\u00a0maturity date is on April 16, 2027.
These loans are considered senior debt in calculating financial leverage in note 37 Capital management and solvency.
\nIn 2024, the operational funding decreased by EUR 113 million mainly due to the paydown of Federal Home Loan Bank (FHLB) borrowings. This borrowing program is part of Aegon\u2019s asset\u2013liability management strategy.
| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n FHLB Secured borrowings 1 | \n \n \n Fixed | \n \n \n Quarterly | \n \n \n 2022 / 26 | \n \n \n 1,449 | \n \n \n 1,562 | \n
| \n \n North Westerly VI Note 1 | \n \n \n Floating | \n \n \n Quarterly | \n \n \n 2020 / 32 | \n \n \n 15 | \n \n \n 15 | \n
| \n \n North Westerly VII Note 1 | \n \n \n Floating | \n \n \n Quarterly | \n \n \n 2021 / 34 | \n \n \n 16 | \n \n \n 16 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 1,480 | \n \n \n 1,593 | \n
| \n \n Undrawn committed borrowing facilities: | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Floating-rate | \n \n | \n\n | \n
| \n \n - Expiring beyond one year | \n \n \n 1,544 | \n \n \n 2,623 | \n
| \n \n On December 31 | \n \n \n 1,544 | \n \n \n 2,623 | \n
These facilities were reduced as a result of lower contingent liquidity needs following the combination of Aegon\u2019s Dutch insurance and banking activities with a.s.r.
There were no defaults or breaches of conditions during the period.
\nThe estimated fair values of Aegon\u2019s assets and liabilities correspond with the amounts that would be received to sell an\u00a0asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When\u00a0available, Aegon uses quoted market prices in active markets to determine the fair value of investments and derivatives. In\u00a0the\u00a0absence of an active market, the fair value of investments in financial assets is estimated by using other market observable data, such as corroborated external quotes and present value or other valuation techniques. An active market is one in which transactions are taking place regularly on an arm\u2019s length basis. Fair value is not determined based on a forced liquidation or distressed sale.
Valuation techniques are used when Aegon determines the market is inactive or quoted market prices are not available for the\u00a0asset or liability at the measurement date. However, the fair value measurement objective remains the same, that is, to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). Therefore, unobservable inputs reflect Aegon\u2019s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). These inputs are developed based on the best information available.
Aegon employs an oversight structure over the valuation of financial instruments that includes the appropriate segregation of duties. Senior management, independent of the investing functions, is responsible for the oversight of control and valuation policies and for reporting the results of these policies. For fair values determined by reference to external quotation or evidenced pricing parameters, independent price determination or validation is utilized to corroborate those inputs. Further details of the validation processes are set out below.
Valuation of assets and liabilities is based on a pricing hierarchy, in order to maintain a controlled process that will systematically promote the use of prices from sources in which Aegon has the most confidence, where the least amount of manual intervention exists, and to embed consistency in the selection of price sources. Depending on asset type the pricing hierarchy consists of a waterfall that starts with making use of market prices from indices and follows with making use of third-party pricing services or brokers.
\nThe following table sets out the fair values of financial instruments by the level of the fair value hierarchy into which each fair value measurement is categorized. It does not include fair value information for cash and cash equivalents, receivables, and payables, whose carrying amounts are a reasonable approximation of fair value, or for lease liabilities.
| \n | \n\n \n 2024 | \n |||
| \n \n Fair value hierarchy | \n \n \n Level I | \n \n \n Level II | \n \n \n Level III | \n \n \n Total | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 34 | \n \n \n - | \n \n \n 4 | \n \n \n 39 | \n
| \n \n Debt securities | \n \n \n 5,170 | \n \n \n 46,242 | \n \n \n 799 | \n \n \n 52,211 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,388 | \n \n \n 47 | \n \n \n - | \n \n \n 2,435 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 31 | \n \n \n - | \n \n \n 31 | \n
| \n | \n\n \n 7,592 | \n \n \n 46,320 | \n \n \n 803 | \n \n \n 54,715 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 163 | \n \n \n 30 | \n \n \n 86 | \n \n \n 279 | \n
| \n \n Debt securities | \n \n \n 308 | \n \n \n 1,970 | \n \n \n 107 | \n \n \n 2,385 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,961 | \n \n \n 135 | \n \n \n - | \n \n \n 2,096 | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n 82 | \n
| \n \n Other investments at fair value | \n \n \n 1 | \n \n \n 718 | \n \n \n 4,457 | \n \n \n 5,176 | \n
| \n \n Derivatives | \n \n \n 30 | \n \n \n 732 | \n \n \n 9 | \n \n \n 771 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 57 | \n \n \n 57 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 457 | \n \n \n 457 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 97,682 | \n \n \n 119,829 | \n \n \n 312 | \n \n \n 217,824 | \n
| \n | \n\n \n 100,146 | \n \n \n 123,414 | \n \n \n 5,567 | \n \n \n 229,127 | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n 66 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 107,738 | \n \n \n 169,734 | \n \n \n 6,436 | \n \n \n 283,908 | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 79,078 | \n \n \n - | \n \n \n 79,078 | \n
| \n \n Derivatives | \n \n \n 53 | \n \n \n 2,382 | \n \n \n - | \n \n \n 2,435 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 53 | \n \n \n 81,460 | \n \n \n - | \n \n \n 81,513 | \n
| \n | \n\n \n 2023 | \n |||
| \n \n Fair value hierarchy | \n \n \n Level I | \n \n \n Level II | \n \n \n Level III | \n \n \n Total | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 5 | \n \n \n - | \n \n \n 4 | \n \n \n 10 | \n
| \n \n Debt securities | \n \n \n 5,644 | \n \n \n 41,031 | \n \n \n 516 | \n \n \n 47,191 | \n
| \n \n Money market and other short-term investments | \n \n \n 3,028 | \n \n \n 97 | \n \n \n 9 | \n \n \n 3,135 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 29 | \n \n \n - | \n \n \n 29 | \n
| \n | \n\n \n 8,678 | \n \n \n 41,157 | \n \n \n 530 | \n \n \n 50,364 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 153 | \n \n \n 43 | \n \n \n 94 | \n \n \n 291 | \n
| \n \n Debt securities | \n \n \n 302 | \n \n \n 2,009 | \n \n \n 86 | \n \n \n 2,396 | \n
| \n \n Money market and other short-term investments | \n \n \n 4,041 | \n \n \n 173 | \n \n \n - | \n \n \n 4,215 | \n
| \n \n Other investments at fair value | \n \n \n 1 | \n \n \n 773 | \n \n \n 4,237 | \n \n \n 5,011 | \n
| \n \n Derivatives | \n \n \n 47 | \n \n \n 1,374 | \n \n \n 8 | \n \n \n 1,429 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 55 | \n \n \n 55 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 433 | \n \n \n 433 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 90,027 | \n \n \n 103,022 | \n \n \n 342 | \n \n \n 193,390 | \n
| \n | \n\n \n 94,570 | \n \n \n 107,395 | \n \n \n 5,255 | \n \n \n 207,220 | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n 61 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 103,248 | \n \n \n 148,551 | \n \n \n 5,846 | \n \n \n 257,645 | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 65,044 | \n \n \n - | \n \n \n 65,044 | \n
| \n \n Derivatives | \n \n \n 39 | \n \n \n 2,434 | \n \n \n 6 | \n \n \n 2,479 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 39 | \n \n \n 67,478 | \n \n \n 6 | \n \n \n 67,523 | \n
Aegon\u2019s policy is to record transfers of assets and liabilities between Level I, Level II and Level III at their fair values from the beginning of each reporting period.
The table below shows transfers between Level I and Level II for financial assets and financial liabilities recorded at fair value on a recurring basis.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n \n Significant transfers between level I, level II and level III | \n \n \n Transfers Level I to Level II | \n \n \n Transfers Level II to Level I | \n \n \n Transfers Level I to Level II | \n \n \n Transfers Level II to Level I | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n 308 | \n \n \n 261 | \n \n \n - | \n \n \n 141 | \n
| \n \n Money market and other short-term investments | \n \n \n 48 | \n \n \n - | \n \n \n 45 | \n \n \n 245 | \n
| \n | \n\n \n 356 | \n \n \n 261 | \n \n \n 45 | \n \n \n 386 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n 11 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n Money market and other short-term investments | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 795 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n - | \n
| \n | \n\n \n 11 | \n \n \n 4 | \n \n \n 1 | \n \n \n 795 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 367 | \n \n \n 265 | \n \n \n 46 | \n \n \n 1,182 | \n
Transfers are identified based on transaction volume and frequency, which are indicative of an active market.
\nThe following table summarizes the change of all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level III), including realized and unrealized gains (losses) of all assets and liabilities and unrealized gains (losses) of all assets and liabilities still held at the end of the respective period.
| \n \n Financial assets carried at fair value | \n \n \n On January 1, 2024 | \n \n \n Total gains / losses in income state- ment 1 | \n \n \n Total gains / losses in OCI 2 | \n \n \n Purch- ases | \n \n \n Sales | \n \n \n Settle- ments | \n \n \n Net ex- change diffe- rence | \n \n \n Reclas- sifica- tion | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total unrealized gains and losses recorded in the P&L for instruments held at December 31, 2024 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 516 | \n \n \n 9 | \n \n \n \n \n (27) \n | \n \n \n 218 | \n \n \n \n \n (126) \n | \n \n \n \n \n (41) \n | \n \n \n 44 | \n \n \n - | \n \n \n 301 | \n \n \n \n \n (96) \n | \n \n \n 799 | \n \n \n - | \n
| \n \n Money markets and other short-term investments | \n \n \n 9 | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 530 | \n \n \n 9 | \n \n \n \n \n (36) \n | \n \n \n 218 | \n \n \n \n \n (126) \n | \n \n \n \n \n (41) \n | \n \n \n 44 | \n \n \n - | \n \n \n 301 | \n \n \n \n \n (96) \n | \n \n \n 803 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 94 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n 16 | \n \n \n \n \n (27) \n | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 86 | \n \n \n \n \n (5) \n | \n
| \n \n Debt securities | \n \n \n 86 | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n 18 | \n \n \n \n \n (14) \n | \n \n \n \n \n (5) \n | \n \n \n 6 | \n \n \n - | \n \n \n 53 | \n \n \n \n \n (18) \n | \n \n \n 107 | \n \n \n \n \n (18) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n 68 | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n - | \n
| \n \n Other investments at fair value | \n \n \n 4,237 | \n \n \n \n \n (175) \n | \n \n \n - | \n \n \n 505 | \n \n \n \n \n (323) \n | \n \n \n - | \n \n \n 280 | \n \n \n \n \n (68) \n | \n \n \n - | \n \n \n - | \n \n \n 4,457 | \n \n \n \n \n (206) \n | \n
| \n \n Derivatives | \n \n \n 8 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 1 | \n
| \n \n Investments in real estate | \n \n \n 55 | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 57 | \n \n \n - | \n
| \n \n Investments in real estate for policyholders | \n \n \n 433 | \n \n \n 9 | \n \n \n - | \n \n \n 26 | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n 21 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 457 | \n \n \n 59 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 342 | \n \n \n 3 | \n \n \n - | \n \n \n 62 | \n \n \n \n \n (112) \n | \n \n \n - | \n \n \n 18 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 312 | \n \n \n 1 | \n
| \n | \n\n \n 5,255 | \n \n \n \n \n (183) \n | \n \n \n - | \n \n \n 638 | \n \n \n \n \n (511) \n | \n \n \n \n \n (5) \n | \n \n \n 338 | \n \n \n - | \n \n \n 53 | \n \n \n \n \n (18) \n | \n \n \n 5,567 | \n \n \n \n \n (169) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n 64 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n \n \n (1) \n | \n
| \n | \n\n \n 64 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets measured at fair value | \n \n \n 5,849 | \n \n \n \n \n (174) \n | \n \n \n \n \n (37) \n | \n \n \n 857 | \n \n \n \n \n (638) \n | \n \n \n \n \n (45) \n | \n \n \n 385 | \n \n \n - | \n \n \n 354 | \n \n \n \n \n (114) \n | \n \n \n 6,436 | \n \n \n \n \n (169) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets carried at fair value | \n \n \n On January 1, 2023 | \n \n \n Total gains / losses in income state- ment 1 | \n \n \n Total gains / losses in OCI 2 | \n \n \n Purch- ases | \n \n \n Sales | \n \n \n Settle- ments | \n \n \n Net ex- change diffe- rence | \n \n \n Reclas- sifica- tion | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total unrealized gains and losses recorded in the P&L for instruments held at December 31, 2023 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 181 | \n \n \n \n \n (1) \n | \n \n \n 11 | \n \n \n 263 | \n \n \n \n \n (124) \n | \n \n \n \n \n (15) \n | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 214 | \n \n \n \n \n (1) \n | \n \n \n 516 | \n \n \n - | \n
| \n \n Money markets and other short-term investments | \n \n \n 5 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n - | \n
| \n | \n\n \n 191 | \n \n \n \n \n (1) \n | \n \n \n 15 | \n \n \n 263 | \n \n \n \n \n (124) \n | \n \n \n \n \n (15) \n | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 214 | \n \n \n \n \n (1) \n | \n \n \n 530 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 127 | \n \n \n 2 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (47) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 94 | \n \n \n 3 | \n
| \n \n Debt securities | \n \n \n 35 | \n \n \n 17 | \n \n \n - | \n \n \n 38 | \n \n \n \n \n (43) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n 46 | \n \n \n - | \n \n \n 86 | \n \n \n \n \n (8) \n | \n
| \n \n Money markets and other short-term investments | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n
| \n \n Other investments at fair value | \n \n \n 4,050 | \n \n \n \n \n (65) \n | \n \n \n - | \n \n \n 652 | \n \n \n \n \n (254) \n | \n \n \n - | \n \n \n \n \n (144) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,237 | \n \n \n \n \n (70) \n | \n
| \n \n Derivatives | \n \n \n 11 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n \n \n \n \n (3) \n | \n
| \n \n Investments in real estate | \n \n \n 59 | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 55 | \n \n \n - | \n
| \n \n Investments in real estate for policyholders | \n \n \n 443 | \n \n \n \n \n (52) \n | \n \n \n - | \n \n \n 42 | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 433 | \n \n \n \n \n (42) \n | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 402 | \n \n \n \n \n (37) \n | \n \n \n - | \n \n \n 37 | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 342 | \n \n \n - | \n
| \n | \n\n \n 5,128 | \n \n \n \n \n (136) \n | \n \n \n - | \n \n \n 782 | \n \n \n \n \n (422) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (142) \n | \n \n \n - | \n \n \n 51 | \n \n \n \n \n (2) \n | \n \n \n 5,255 | \n \n \n \n \n (120) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n 73 | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 64 | \n \n \n - | \n
| \n | \n\n \n 73 | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 64 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets measured at fair value | \n \n \n 5,392 | \n \n \n \n \n (141) \n | \n \n \n 13 | \n \n \n 1,044 | \n \n \n \n \n (546) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (157) \n | \n \n \n - | \n \n \n 265 | \n \n \n \n \n (3) \n | \n \n \n 5,849 | \n \n \n \n \n (120) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 12 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n
| \n | \n\n \n 12 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n
In 2023 and 2024, Aegon transferred certain financial instruments from Level I and II to Level III of the fair value hierarchy. The\u00a0reason for the change in level was that the market liquidity for these securities decreased, which led to a change in\u00a0market observability of prices. Prior to transfer, the fair value for the Level II securities was determined using observable market transactions, internal models or corroborated broker quotes respectively for the same or similar instruments. Since\u00a0the\u00a0transfer, all such assets have been valued using valuation models incorporating significant non-market-observable inputs or\u00a0uncorroborated broker quotes.
Similarly, during 2023 and 2024, Aegon transferred certain financial instruments from Level III to Level I and II of the fair value hierarchy. The change in level was mainly the result of a return of activity in the market for these securities, and that for these securities the fair value could be determined using observable market transactions or corroborated broker quotes for the same or similar instruments.
\nThe table below presents information about the\u00a0valuation techniques and significant unobservable inputs used for recurring fair value measurements for certain Level III financial instruments.
| \n | \n\n \n Valuation technique 1 | \n \n \n Significant unobservable input 2 | \n \n \n December 31, 2024 | \n \n \n \n \n Range (weighted average) \n | \n \n \n December 31, 2023 | \n \n \n \n \n Range (weighted average) \n | \n
| \n \n Assets carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value through OCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n Net asset value | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n - | \n \n | \n\n \n 4 | \n \n | \n
| \n \n Debt securities | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n Broker quote | \n \n \n n.a. | \n \n \n 688 | \n \n \n n.a. | \n \n \n 416 | \n \n \n n.a. | \n
| \n | \n\n \n Discounted cash flow | \n \n \n Constant Prepayment Rate | \n \n \n 28 | \n \n \n 21.11% | \n \n \n 2 | \n \n \n 1.81% | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n \n \n 98 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 799 | \n \n | \n\n \n 516 | \n \n | \n
| \n \n Other investments at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n \n Other | \n \n \n Other | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n 9 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n - | \n \n | \n\n \n 9 | \n \n | \n
| \n \n On December 31 | \n \n | \n\n | \n\n \n 799 | \n \n | \n\n \n 530 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n \n \n 91 | \n \n \n n.a. | \n
| \n \n Shares | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 3 | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 94 | \n \n \n n.a. | \n \n \n 80 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Other | \n \n \n n.a. | \n \n \n 13 | \n \n \n n.a. | \n \n \n 6 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 193 | \n \n | \n\n \n 180 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other investments at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 3,633 | \n \n | \n\n \n 3,532 | \n \n | \n
| \n \n Tax credit investments | \n \n \n Discounted cash flow | \n \n \n Discount rate | \n \n \n 823 | \n \n \n 6.72% | \n \n \n 705 | \n \n \n 6.88% | \n
| \n \n Loans | \n \n \n Other | \n \n \n n.a. | \n \n \n 82 | \n \n | \n\n \n - | \n \n | \n
| \n | \n\n | \n\n | \n\n \n 4,538 | \n \n | \n\n \n 4,237 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total assets at fair value 3 | \n \n | \n\n | \n\n \n 5,530 | \n \n | \n\n \n 4,947 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Embedded derivatives in insurance contracts | \n \n \n Discounted cash flow | \n \n \n Own credit spread | \n \n \n - | \n \n \n n.a | \n \n \n 3 | \n \n \n n.a | \n
| \n \n Other | \n \n \n Discounted cash flow | \n \n \n Other | \n \n \n - | \n \n \n n.a | \n \n \n 3 | \n \n \n n.a | \n
| \n \n Total liabilities at fair value | \n \n | \n\n | \n\n \n - | \n \n | \n\n \n 6 | \n \n | \n
For reference purposes, the valuation techniques included in the table above are described in more detail on the following pages.
\nThe following table presents the carrying values and estimated fair values of assets and liabilities, excluding assets and liabilities that are carried at fair value on a recurring basis.
| \n | \n\n \n Carrying amount | \n \n \n Estimated fair value hierarchy | \n \n \n Total estimated fair value December 31, 2024 | \n ||
| \n | \n\n \n Level I | \n \n \n Level II | \n \n \n Level III | \n ||
| \n \n Assets | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities - held at amortized cost | \n \n \n 36 | \n \n \n 36 | \n \n \n - | \n \n \n - | \n \n \n 36 | \n
| \n \n Loans - held at amortized cost | \n \n \n 10,598 | \n \n \n - | \n \n \n 1 | \n \n \n 9,379 | \n \n \n 9,380 | \n
| \n \n Deposits with financial institutions - held at amortized cost | \n \n \n 11 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 11 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Subordinated borrowings - held at amortized cost | \n \n \n 1,653 | \n \n \n 763 | \n \n \n 727 | \n \n \n - | \n \n \n 1,490 | \n
| \n \n Trust pass-through securities - held at amortized cost | \n \n \n 113 | \n \n \n - | \n \n \n 133 | \n \n \n - | \n \n \n 133 | \n
| \n \n Borrowings \u2013 held at amortized cost | \n \n \n 3,013 | \n \n \n 867 | \n \n \n 2,209 | \n \n \n - | \n \n \n 3,076 | \n
| \n \n Investment contracts - held at amortized cost | \n \n \n 12,592 | \n \n \n - | \n \n \n - | \n \n \n 9,432 | \n \n \n 9,432 | \n
| \n | \n\n \n Carrying amount | \n \n \n Estimated fair value hierarchy | \n \n \n Total estimated fair value December 31, 2023 | \n ||
| \n | \n\n \n Level I | \n \n \n Level II | \n \n \n Level III | \n ||
| \n \n Assets | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities - held at amortized cost | \n \n \n 52 | \n \n \n 52 | \n \n \n - | \n \n \n - | \n \n \n 52 | \n
| \n \n Loans - held at amortized cost | \n \n \n 10,157 | \n \n \n - | \n \n \n 1 | \n \n \n 9,024 | \n \n \n 9,025 | \n
| \n \n Deposits with financial institutions - held at amortized cost | \n \n \n 18 | \n \n \n 18 | \n \n \n 1 | \n \n \n - | \n \n \n 18 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Subordinated borrowings - held at amortized cost | \n \n \n 2,244 | \n \n \n 1,392 | \n \n \n 730 | \n \n \n - | \n \n \n 2,122 | \n
| \n \n Trust pass-through securities - held at amortized cost | \n \n \n 111 | \n \n \n - | \n \n \n 125 | \n \n \n - | \n \n \n 125 | \n
| \n \n Borrowings \u2013 held at amortized cost | \n \n \n 2,356 | \n \n \n 879 | \n \n \n 1,580 | \n \n \n - | \n \n \n 2,459 | \n
| \n \n Investment contracts - held at amortized cost | \n \n \n 10,222 | \n \n \n - | \n \n \n - | \n \n \n 8,755 | \n \n \n 8,755 | \n
Certain financial instruments that are not carried at fair value are carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and cash equivalents, short-term receivables and accrued interest receivable, short-term liabilities, and accrued liabilities. These instruments are not included in the table above.
\nThe description of Aegon's methods of determining fair value and valuation techniques are described on the following pages.
\nWhen available, Aegon uses quoted market prices in active markets to determine the fair value of its investments in shares. For Level III unquoted shares,\u00a0the net asset value can be considered the best approximation to the fair value. Net asset value is the value of an entity's assets minus the value of its liabilities and may be the same as the book value or the equity value of the entity.\u00a0
Also, for unquoted shares, the fair value may be estimated using other methods, such as observations of the price/earnings or price/cash flow ratios of quoted companies considered comparable to the companies being valued. Valuations are adjusted to account for company-specific issues and the lack of liquidity inherent in an unquoted investment. Adjustments for lack of liquidity are generally based on available market evidence. In addition, a variety of other factors are reviewed by management, including, but not limited to, current operating performance, changes in market outlook and the third-party financing environment.\u00a0
Included in this category are shares in a Federal Home Loan Bank (FHLB) for an amount of EUR 77 million (2023: EUR\u00a082\u00a0million), which are reported as part of the line-item Net asset value. A FHLB has implicit financial support from the\u00a0United\u00a0States government. The redemption value of the shares is fixed at par and they can only be redeemed by\u00a0the\u00a0FHLB.
\nThe fair values of debt securities are determined by management after taking into consideration several sources of data. When available, Aegon uses quoted market prices in active markets to determine the fair value of its debt securities. As stated previously, Aegon\u2019s valuation policy utilizes a pricing hierarchy that dictates that publicly available prices are initially sought from indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes, the majority of which are non-binding. As part of the pricing process, Aegon assesses the appropriateness of each quote (i.e. as to whether the quote is based on observable market transactions or not) to determine the most appropriate estimate of fair value.
When broker quotes are not available, securities are priced using internal cash flow modeling techniques. These valuation methodologies commonly use the following inputs: reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, issue-specific credit adjustments, indicative quotes from market makers and/or estimated cash flows.
To understand the valuation methodologies used by third-party pricing services Aegon reviews and monitors the applicable methodology documents of the third-party pricing services. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, Aegon performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate that Aegon can corroborate detailed information such as assumptions, inputs, and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.
Third-party pricing services will often determine prices using recently reported trades for identical or similar securities. The\u00a0third-party pricing service makes adjustments for the elapsed time from the trade date to the reporting date to take into\u00a0account available market information. Lacking recently reported trades, third-party pricing services and brokers will use modeling techniques to determine a security price where expected future cash flows are developed based on the performance of the underlying collateral and discounted using an estimated market rate.
Periodically, Aegon performs an analysis of the inputs obtained from third-party pricing services and brokers to ensure that the inputs are reasonable and produce a reasonable estimate of fair value. Aegon\u2019s asset specialists and investment valuation specialists consider both qualitative and quantitative factors as part of this analysis. Several examples of analytical procedures performed include, but are not limited to, recent transactional activity for similar debt securities, review of pricing statistics and trends and consideration of recent relevant market events. Other controls and procedures over pricing received from indices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant price changes, stale prices, or unpriced securities. In addition, Aegon performs back testing on a sample basis. Back testing involves selecting a sample of securities trades and comparing the prices in those transactions to prices used for financial reporting. Significant variances between the price used for financial reporting and the transaction price are investigated to explain the cause of the difference.
Credit ratings are also an important consideration in the valuation of securities and are included in the internal process for determining Aegon\u2019s view of the risk associated with each security. However, Aegon does not rely solely on external credit ratings and there is an internal process, based on market observable inputs, for determining Aegon\u2019s view of the risks associated with each security.
Aegon\u2019s portfolio of private placement securities (held at fair value under the classification of fair value through OCI or fair value through profit or loss) is valued using a matrix pricing methodology. The pricing matrix is obtained from a third-party service provider and indicates current spreads for securities based on weighted average life, credit rating, and industry sector. Each month, Aegon\u2019s asset specialists review the matrix to ensure the spreads are reasonable by comparing them to observed spreads for similar bonds traded in the market. Other inputs to the valuation include coupon rate, the current interest rate curve used for discounting and a liquidity premium to account for the illiquid nature of these securities. The\u00a0liquidity premiums are determined based upon the pricing of recent transactions in the private placements market; comparing the value of the privately offered security to a similar public security. The impact of the liquidity premium for private placement securities to the overall valuation is insignificant.
Aegon's portfolio of debt securities can be subdivided into residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), asset-backed securities (ABS), corporate bonds and government debt. Relevant details of the valuation methodologies for these specific types of debt securities are described below.
\nValuations of RMBS, CMBS and ABS are monitored and reviewed on a monthly basis. Valuations per asset type are based on\u00a0a\u00a0pricing hierarchy, which uses a waterfall approach that starts with market prices from indices and follows with third-party pricing services or brokers. The pricing hierarchy is dependent on the possibilities of corroboration of the market prices. If\u00a0no\u00a0market prices are available, Aegon uses internal models to determine fair value. Significant inputs included in the internal models are generally determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles. Market standard models may be used to model the specific collateral composition and cash flow structure of each transaction. The most significant unobservable input is the liquidity premium which is embedded in\u00a0the discount\u00a0rate.\u200b\u200b\u200b\u200b
\nValuations of corporate bonds are monitored and reviewed on a monthly basis. The pricing hierarchy is dependent on the possibility of corroboration of market prices when available. If no market prices are available, valuations are determined by a discounted cash flow methodology using an internally calculated yield. The yield is comprised of a credit spread over a given benchmark. In all cases, the benchmark is an observable input. The credit spread contains both observable and unobservable inputs. Aegon starts by taking an observable credit spread from a similar bond of the given issuer, and then adjust this spread based on unobservable inputs. These unobservable inputs may include subordination, liquidity and maturity differences. During 2024, there were no corporate bonds that met the policy threshold to be internally modeled.
\nWhen available, Aegon uses quoted market prices in active markets to determine the fair value of its government debt investments. When Aegon cannot make use of quoted market prices, market prices from indices or quotes from third-party pricing services or brokers are used.
\nThe fair value of assets maturing within a year is assumed to be approximated by their carrying amount adjusted for credit risk where appropriate. Credit risk adjustments are based on market observable credit spreads if available, or management\u2019s estimate if not market observable.
\nThe Level III fair value of tax credit investments is determined by using a discounted cash flow valuation technique. This valuation technique takes into consideration projections of future capital contributions and distributions, as well as future tax credits and the tax benefits of future operating losses. The present value of these cash flows is calculated by applying a discount rate. In general, the discount rate is determined based on the cash outflows for the investments and the cash inflows from the tax credits and/or tax benefits (and the timing of these cash flows). These inputs are unobservable in the marketplace. The discount rate used in valuation of tax credit investments was 6.7% (December 31, 2023: 6.9%).
\nThe fair values of investments held in non-quoted investment funds are determined by management after taking into consideration information provided by the fund managers. Aegon reviews the valuations each month and performs analytical procedures and trending analyses to ensure the fair values are appropriate. The net asset value is considered the best valuation method that approximates the fair value of the funds.
\nFor private loans, fixed interest mortgage loans and other loans originated by the Group, the fair value used for disclosure purposes is estimated by discounting expected future cash flows using a current market rate applicable to financial instruments with similar yield and maturity characteristics. For fixed interest mortgage loans, the market rate is adjusted for expenses, prepayment rates, lapse assumptions (unobservable inputs), liquidity, and credit risk (market observable inputs). An\u00a0increase in expense spread, prepayment rates and/or prepayment assumptions, would decrease the fair value of the mortgage loan portfolio.
The fair value of floating interest rate mortgage loans, policy loans and private placements used for disclosure purposes is assumed to be approximated by their carrying amount, adjusted for changes in credit risk. Credit risk adjustments are based on market observable credit spreads if available, or management\u2019s estimate if not market observable.
\nWhere quoted market prices are not available, other valuation techniques, such as option pricing or stochastic modeling, are applied. The valuation techniques incorporate all factors that a typical market participant would consider and are based on observable market data when available. Models are validated before they are used and calibrated to ensure that outputs reflect actual experience and comparable market prices.
Fair values for exchange-traded derivatives, principally futures and certain options, are based on quoted market prices in active markets. Fair values for over-the-counter (OTC) derivative financial instruments represent amounts estimated to be received from or paid to a third party in the settlement of these instruments. These derivatives are valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other OTC trades, or external pricing services. Most valuations are derived from swap and volatility matrices, which are constructed for applicable indices and currencies using current market data from many industry-standard sources. Option pricing is based on industry standard valuation models and current market levels, where applicable. The pricing of complex or illiquid instruments is based on internal models or an independent third party. For long-dated illiquid contracts, extrapolation methods are applied to observed market data in order to estimate inputs and assumptions that are not directly observable. To value OTC derivatives, management uses observed market information, other trades in the market, and dealer prices.
Some OTC derivatives are so-called longevity derivatives. The payout of longevity derivatives is linked to publicly available mortality tables. The derivatives are measured using the present value of the best estimate of expected payouts of the derivative plus a risk margin. The best estimate of expected payouts is determined using best estimate of mortality developments. Aegon determined the risk margin by stressing the best estimate mortality developments to quantify the risk and applying a cost-of-capital methodology. Depending on the duration of the longevity swaps either the projected mortality development or discount rate are the most significant unobservable inputs.
Aegon normally mitigates counterparty credit risk in derivative contracts by entering into collateral agreements where practical and in ISDA master netting agreements for each of the Group\u2019s legal entities to facilitate Aegon\u2019s right to offset credit risk exposure. Changes in the fair value of derivatives attributable to changes in counterparty credit risk were not significant.
\nValuations of Level III investments in real estate and real estate held for own use are conducted in full by independent external appraisers at least every three to five years and reviewed at least once a year by qualified internal appraisers to ensure the value correctly reflects the fair value at the reporting date. Appraisals are different for each specific local market but are based on market guidelines such as International Valuation Standards, Uniform Standards of Professional Appraisal Practice, or guidelines issued by the Investment Property Databank. Valuations are mostly based on active market prices, adjusted for any difference in the nature, location or condition of the specific property. If such information is not available, other valuation methods are applied, considering the value that the property\u2019s net earning power will support, the value indicated by recent sales of comparable properties and the current cost of reproducing or replacing the property. Discount rates used in the valuation of real estate reflect the risk embedded in the projected cash flows for the asset being valued. Capitalization rates represent the income rate for a real estate property that reflects the relationship between a single year\u2019s net operating income expectancy and the total property price or value. For property held for own use, appraisers consider the present value of the future rental income cash flows that could be achieved had the real estate been rented to a third party.
\nTrust pass-through securities and subordinated borrowings are either carried at fair value (if they are designated as financial liabilities at fair value through profit or loss) or amortized cost (with fair value being disclosed in the notes to the consolidated financial statements). For the determination of the fair value of these instruments, the level hierarchy as described by IFRS is used. The preferred method of obtaining the fair value of the fair value option bonds is the quoted price (Level I). In cases were markets are less liquid or the quoted prices are not available, Aegon\u2019s valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from indices and third-party pricing services. The US trust pass-through securities and subordinated borrowings are classified as Level II of the fair value hierarchy.
\nInvestment contracts issued by Aegon are either carried at fair value (if they are designated as financial liabilities at fair value through profit or loss) or amortized cost (with fair value being disclosed in the notes to the consolidated financial statements). These contracts are not quoted in active markets and their fair values are determined by using valuation techniques, such as discounted cash flow methods and stochastic modeling or in relation to the unit price of the underlying assets. All models are validated and calibrated. A variety of factors are considered, including time value, volatility, policyholder behavior, servicing costs and fair values of similar instruments.
Certain investment products are not quoted in active markets and their fair values are determined by using valuation techniques. Because of the dynamic and complex nature of these cash flows, stochastic or similar techniques under a variety of market return scenarios are often used. A variety of factors are considered, including expected market rates of return, market volatility, correlations of market returns, discount rates and actuarial assumptions.
The expected returns are based on risk-free rates, such as the current Secured Overnight Financing Rate (SOFR) swap rates\u00a0and associated forward rates, the\u00a0Overnight Index Swap (OIS) curve or the current rates on local government bonds. Market volatility assumptions for each underlying index are based on observed market implied volatility data and/or observed market performance. Correlations of market returns for various underlying indices are based on observed market returns and their interrelationships over a number of years preceding the valuation date. Current risk-free spot rates are used to determine the present value of expected future cash flows produced in the stochastic projection process.
Assumptions on customer behavior, such as lapses, included in the models are derived in the same way as the assumptions used to measure insurance liabilities.
\nThe table that follows summarizes the carrying amounts of financial assets and financial liabilities that are classified as fair value through profit or loss, with appropriate distinction between those financial assets and financial liabilities held for trading and those that, upon initial recognition, were designated as fair value through profit or loss.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments where Aegon bears the risk | \n \n \n 7,661 | \n \n \n 2,356 | \n \n \n 9,386 | \n \n \n 2,526 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n - | \n \n \n 218,281 | \n \n \n - | \n \n \n 193,823 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 606 | \n \n \n - | \n \n \n 1,238 | \n \n \n - | \n
| \n \n Total financial assets at fair value through profit or loss | \n \n \n 8,267 | \n \n \n 220,637 | \n \n \n 10,625 | \n \n \n 196,349 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 79,078 | \n \n \n - | \n \n \n 65,044 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 1,331 | \n \n \n - | \n \n \n 1,466 | \n \n \n - | \n
| \n \n Total financial liabilities at fair value through profit or loss | \n \n \n 1,331 | \n \n \n 79,078 | \n \n \n 1,466 | \n \n \n 65,044 | \n
Aegon has certain insurance and investment liabilities that are carried at fair value with changes in the fair value recognized in the income statement. The Group has elected to designate the investments backing those liabilities at fair value through profit or loss, as a classification of fair value through OCI would result in accumulation of unrealized gains and losses in a revaluation reserve within equity while changes to the liability would be reflected in net result (accounting mismatch).
\nInvestments where the policyholder bears the risk comprise assets that are linked to various insurance and investment contracts for which the financial risks are borne by the customer. Under the Group\u2019s accounting policies these insurance and\u00a0investment liabilities are measured at the fair value of the linked assets with changes in the fair value recognized in the\u00a0income statement. To avoid an accounting mismatch the linked assets have been designated as fair value through profit or\u00a0loss.
In addition, investments where policyholders bear the risk include profit assets, whereby Aegon manages the assets together with related liabilities on a fair value basis in accordance with a documented policy of asset and liability management. In accordance with the Group\u2019s accounting policies, these assets have been designated as fair value through profit or loss.
\nWith the exception of the financial liabilities with discretionary participating features that are not subject to the classification and measurement requirements for financial instruments, all investment contracts without discretionary participating features where the policyholder bears the risk, are carried at fair value or at the fair value of the linked assets are included in the table above.
\nWith the exception of derivatives designated as a hedging instrument, all derivatives are included in the table above.
\nGains and losses recognized in the income statement on financial assets and financial liabilities classified as fair value through profit or loss can be summarized as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n \n \n Net gains and (losses) \n | \n \n \n \n \n (1,643) \n | \n \n \n 20,912 | \n \n \n \n \n (1,244) \n | \n \n \n 21,207 | \n
Changes in the fair value of investment contracts without discretionary participating features where the policyholders bear the risk that are designated at fair value through profit or loss were not attributable to changes in Aegon\u2019s credit spread. There\u00a0are also no differences between the carrying amounts of these financial liabilities and the contractual amounts payable at maturity (net of surrender penalties).
\nTransfers of financial assets occur when Aegon transfers contractual rights to receive cash flows of financial assets or when Aegon retains the contractual rights to receive the cash flows of the transferred financial asset but assumes a contractual obligation to pay the cash flows to one or more recipients in that arrangement.
In the normal course of business Aegon is involved in the following transactions:
Transferred financial assets that are not derecognized in their entirety: \t \t\t
\nSecurities lending; whereby Aegon legally (but not economically) transfers assets and receives cash and non-cash\u00a0collateral. The transferred assets are not derecognized. The obligation to repay the cash collateral is recognized as\u00a0a\u00a0liability. 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\u00a0not\u00a0economically) transferred but are not derecognized. The obligation to repay the cash received is recognized as\u00a0a\u00a0liability.
Transferred financial assets that are derecognized in their entirety and Aegon does not have a continuing involvement (normal sale);\u00a0
Transferred financial assets that are derecognized in their entirety, but where Aegon has a continuing involvement;\u00a0
Collateral accepted in the case of securities lending, reverse repurchase agreement and derivative transactions; and\u00a0
Collateral pledged in the case of (contingent) liabilities, repurchase agreements, securities borrowing and derivative transactions.
The following disclosures provide details for transferred financial assets that are not derecognized in their entirety, transferred financial asset that are derecognized in their entirety, but where Aegon has a continuing involvement and assets have been accepted and pledged as collateral.
\nThe following table reflects the carrying amount of financial assets that have been transferred to another party in such a way that part or all the transferred financial assets do not qualify for derecognition. Furthermore, it reflects the carrying amounts of the associated liabilities.
| \n | \n\n \n 2024 | \n |||||||
| \n | \n\n \n FVOCI financial assets | \n \n \n FVPL financial assets | \n ||||||
| \n | \n\n \n Shares | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Other | \n \n \n Debt securities | \n \n \n Investments where the PH bears risk | \n \n \n Money market and other short-term investments | \n \n \n Other | \n
| \n \n Carrying amount of transferred assets | \n \n \n - | \n \n \n 1,628 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 39 | \n \n \n - | \n \n \n - | \n
| \n \n Carrying amount of associated liabilities | \n \n \n - | \n \n \n 1,897 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 2023 | \n |||||||
| \n | \n\n \n FVOCI financial assets | \n \n \n FVPL financial assets | \n ||||||
| \n | \n\n \n Shares | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Other | \n \n \n Debt securities | \n \n \n Investments where the PH bears risk | \n \n \n Money market and other short-term investments | \n \n \n Other | \n
| \n \n Carrying amount of transferred assets | \n \n \n - | \n \n \n 2,068 | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n 15 | \n \n \n - | \n \n \n - | \n
| \n \n Carrying amount of associated liabilities | \n \n \n - | \n \n \n 2,382 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n - | \n
In transactions in which the Group neither retains nor transfers substantially all the risks and rewards of ownership of a\u00a0financial asset and it retains control over the asset, the Group continues to recognize the asset to the extent of its continuing involvement, determined by the extent to which it is exposed to changes in the value of the transferred asset.
\nThe table above includes financial assets that have been transferred to another party under securities lending and repurchase activities.
Aegon retains substantially all risks and rewards of those transferred assets, this includes credit risk, settlement risk, country\u00a0risk and market risk. The assets are transferred in return for cash collateral or other financial assets. Non-cash collateral is not recognized in the statement of financial position. Cash collateral is recorded on the statement of financial position as an asset and an offsetting liability is established for the same amount as Aegon is obligated to return this amount upon termination of the lending arrangement. Cash collateral is usually invested in pre-designated high quality investments. The\u00a0sum of cash and non-cash collateral is typically greater than the market value of the related securities loaned. See note\u00a040.3 Assets accepted and note\u00a040.4 Assets pledged for an analysis of collateral accepted and pledged in relation to securities lending and repurchase agreements.
\nAegon has no transferred financial assets with continuing involvement that are derecognized in their entirety as per year-end 2024 and year-end\u00a02023.
\nAegon receives collateral related to securities lending, reverse repurchase activities, and derivative transactions. Non-cash collateral is not recognized in the statement of financial position. To the extent that cash is paid for reverse repurchase agreements, a receivable is recognized for the corresponding amount.\u00a0
The following tables present the fair value of the assets received in relation to securities lending and reverse repurchase activities:
| \n \n Securities lending | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Carrying amount of transferred financial assets | \n \n \n 1,668 | \n \n \n 2,063 | \n
| \n \n Fair value of cash collateral received | \n \n \n 1,898 | \n \n \n 2,357 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 41 | \n \n \n 16 | \n
| \n \n Net exposure | \n \n \n \n \n (271) \n | \n \n \n \n \n (309) \n | \n
| \n \n Reverse repurchase agreements | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Cash paid for reverse repurchase agreements | \n \n \n 324 | \n \n \n 442 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 343 | \n \n \n 467 | \n
| \n \n Net exposure | \n \n \n \n \n (20) \n | \n \n \n \n \n (24) \n | \n
The above items are conducted under terms that are usual and customary to standard securities lending activities, as well as requirements determined by exchanges where the bank acts as an intermediary.
For 2023 and 2024 there is no Non-cash collateral that can be sold or repledged in the absence of default and no Non-cash collateral has been sold or transferred.\u00a0
In addition, Aegon can receive collateral related to derivative transactions that it enters into. The credit support agreement will normally dictate the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of over-the-counter derivative trades, comprised mostly of interest rate swaps, currency swaps, and credit swaps. See the credit risk section in note\u00a04 Financial risks for details on collateral received for derivative transactions.
\nAegon pledges assets that are on its statement of financial position in securities borrowing transactions, in repurchase transactions, in derivative transactions and against long-term borrowings. In addition, in order to trade derivatives on the various exchanges, Aegon posts margin as collateral.
These transactions are conducted under terms that are usual and customary to standard long-term borrowing, derivative, and\u00a0securities borrowing activities, as well as requirements determined by exchanges where the bank acts as intermediary.
Non-cash financial assets that are borrowed or purchased under agreement to resell are not recognized in the statement of financial position.
To the extent that cash collateral is paid, a receivable is recognized for the corresponding amount. If other non-cash financial assets are given as collateral, these are not derecognized.
The following tables present the carrying amount of collateral pledged and the corresponding amounts.
| \n | \n\n | \n\n \n 2024 | \n \n | \n\n \n 2023 | \n
| \n \n Assets pledged for general account and contingent liabilities | \n \n \n Where Aegon bears the risk | \n \n \n Where the PH bears the risk | \n \n \n Where Aegon bears the risk | \n \n \n Where the PH bears the risk | \n
| \n \n Contingent liabilities | \n \n \n 2,143 | \n \n \n - | \n \n \n 2,290 | \n \n \n - | \n
| \n \n Collateral pledged | \n \n \n 4,282 | \n \n \n - | \n \n \n 4,171 | \n \n \n - | \n
| \n \n Net exposure | \n \n \n \n \n (2,139) \n | \n \n \n - | \n \n \n \n \n (1,881) \n | \n \n \n - | \n
For 2023 and 2024, there is no Non-cash collateral that can be sold or repledged by the counterparty.
| \n \n Assets pledged for repurchase agreements | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Cash received on repurchase agreements | \n \n \n - | \n \n \n 29 | \n
| \n \n \n \n Collateral pledged (transferred financial assets) \n | \n \n \n - | \n \n \n 25 | \n
| \n \n Net exposure | \n \n \n - | \n \n \n 3 | \n
For 2024, there is no Cash collateral\u00a0that can be sold or repledged by the counterparty (2023: EUR 3 million).
In order to trade derivatives on the various exchanges, Aegon posts margin as collateral. The amount of collateral pledged for derivative transactions was EUR 2.8 billion (2023: EUR 2.3 billion).
\nThe following table only includes financial positions for which there is a recognized corresponding position that could be offset under a legally enforceable master netting arrangement or similar agreement. Aegon also enters into collateralized (reverse) repo or security lending and borrowing transactions, for which the collateral is not recognized on the balance sheet. For further information on the financial positions resulting from such transactions please see note 40 Transfer of financial assets. The table provides details relating to the effect, or potential effect, of netting arrangements, including rights to set-off, associated with the entity's recognized financial assets and recognized financial liabilities.
| \n | \n\n \n Gross amounts of recognized financial assets | \n \n \n Gross amounts of recognized financial liabilities set off in the statement of financial position | \n \n \n Net amounts of financial assets presented in the statement of financial position | \n \n \n Related amounts not set off in the statements of financial position | \n \n \n Net amount | \n |
| \n \n Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements | \n \n \n Financial instruments | \n \n \n \n \n Cash collateral received (excluding surplus collateral) \n | \n ||||
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 723 | \n \n \n 5 | \n \n \n 718 | \n \n \n 628 | \n \n \n 81 | \n \n \n 8 | \n
| \n \n On December 31 | \n \n \n 723 | \n \n \n 5 | \n \n \n 718 | \n \n \n 628 | \n \n \n 81 | \n \n \n 8 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 1,341 | \n \n \n - | \n \n \n 1,341 | \n \n \n 631 | \n \n \n 707 | \n \n \n 2 | \n
| \n \n On December 31 | \n \n \n 1,341 | \n \n \n - | \n \n \n 1,341 | \n \n \n 631 | \n \n \n 707 | \n \n \n 2 | \n
| \n | \n\n \n Gross amounts of recognized financial liabilities | \n \n \n Gross amounts of recognized financial assets set off in the statement of financial position | \n \n \n Net amounts of financial liabilities presented in the statement of financial position | \n \n \n Related amounts not set off in the statements of financial position | \n \n \n Net amount | \n |
| \n \n Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements | \n \n \n Financial instruments | \n \n \n \n \n Cash collateral pledged (excluding surplus collateral) \n | \n ||||
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 2,302 | \n \n \n - | \n \n \n 2,302 | \n \n \n 1,537 | \n \n \n 710 | \n \n \n 55 | \n
| \n \n On December 31 | \n \n \n 2,302 | \n \n \n - | \n \n \n 2,302 | \n \n \n 1,537 | \n \n \n 710 | \n \n \n 55 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 2,361 | \n \n \n - | \n \n \n 2,361 | \n \n \n 1,245 | \n \n \n 1,026 | \n \n \n 90 | \n
| \n \n On December 31 | \n \n \n 2,361 | \n \n \n - | \n \n \n 2,361 | \n \n \n 1,245 | \n \n \n 1,026 | \n \n \n 90 | \n
Financial assets and liabilities are offset in the statement of financial position when the Group has a legally enforceable right to offset and has the intention to settle the asset and liability on a net basis, or to realize the asset and settle the liability simultaneously. As shown in the second column there are EUR 5 millions of Derivatives offset in 2024 and no financial assets and liabilities offset in 2023.
The line Derivatives includes both derivatives for general account and derivatives where the policyholder bears the risk.
Aegon mitigates credit risk in derivative contracts by entering into collateral agreements, where practical, and in ISDA master netting agreements for each of Aegon\u2019s legal entities to facilitate Aegon\u2019s right to offset credit risk exposure. The credit support agreement will normally dictate the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of over-the-counter derivative trades, comprised mostly of interest rate swaps, currency swaps and credit swaps. These transactions are conducted under terms that are usual and customary to standard long-term borrowing, derivatives, securities lending and securities borrowing activities, as well as requirements determined by exchanges where the bank acts as an intermediary.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1579m1472p": { "value": "\nCredit risk is the risk of financial loss to Aegon if a counterparty to a reinsurance contract or financial instrument fails to meet its contractual obligations; the risk of economic loss due to the deterioration in the financial condition of counterparties, either through fair value losses on traded securities or through defaults on traded securities, loans and mortgages.
Aegon implemented policies and procedures to govern credit limits and processes to manage credit risk, concentration risk and counterparty risk with regards to all the Group\u2019s material businesses with credit exposures in scope, including bonds, loans, cash and equivalents, collateralized assets, reinsurance assets, and assets measured at fair value. The Group uses risk gradings aligned with the major credit rating agencies, and in the case of specific asset portfolios such as residential mortgage loans implements internal risk gradings that reflect its assessment of the probability of default of individual counterparties.\u00a0
The credit grades are calibrated such that the risk of default increases exponentially with each increase in risk grade. For\u00a0example, this means that the difference in the probability of default (PD) between the AAA and A rating grades is lower than the difference in the PD between the BBB and B rating grade.\u00a0
\nAs premiums and deposits are received, these funds are invested to pay for future policyholder obligations. For assets backing insurance liabilities measured under the general model and the premium allocated approach, as well as other \"free\" assets, Aegon typically bears the risk for investment performance which is equal to the return of principal and interest.
Aegon\u00a0is exposed to credit risk on its fixed-income portfolio (debt securities, mortgages and private placements), over-the-counter derivatives and reinsurance contracts. Some issuers have defaulted on their financial obligations for various reasons, including bankruptcy, lack of liquidity, downturns in the economy, downturns in real estate values, operational failure and fraud. During financial downturns, Aegon can incur defaults or other reductions in the value of these securities and loans, which could have a materially adverse effect on Aegon\u2019s business, results of operations and financial condition.
The estimates of best estimate liability for (re)insurance contracts assets represent Aegon\u2019s maximum exposure to credit risk from these assets. Please see the cash flow information in note 29\u00a0Insurance contracts and reinsurance contracts held.
The following table contains an analysis of Aegon\u2019s maximum credit risk exposure from financial assets.
Please\u00a0see\u00a0note\u00a039 Commitments and contingencies\u00a0and 40 Transfers of financial assets for further information on capital commitments and contingencies and on collateral given, which may expose the Group to credit risk.
| \n \n 2024 | \n \n \n Maximum exposure to credit risk | \n \n \n Cash | \n \n \n Securities | \n \n \n Letters of credit / guaran- | \n \n \n Real estate property | \n \n \n Master netting agree- | \n \n \n Other | \n \n \n Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 60,890 | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n - | \n \n \n 60,829 | \n
| \n \n Money market and other short-term investments | \n \n \n 6,071 | \n \n \n - | \n \n \n 324 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 324 | \n \n \n 20 | \n \n \n 5,767 | \n
| \n \n Loans | \n \n \n 10,798 | \n \n \n 51 | \n \n \n - | \n \n \n 20 | \n \n \n 23,694 | \n \n \n - | \n \n \n - | \n \n \n 23,766 | \n \n \n 12,982 | \n \n \n 14 | \n
| \n \n Unconsolidated investment funds | \n \n \n 192,775 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 192,775 | \n
| \n \n Deposits with financial institutes | \n \n \n 2,063 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,063 | \n
| \n \n Other investments | \n \n \n 5,207 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,207 | \n
| \n \n Derivative assets | \n \n \n 771 | \n \n \n 220 | \n \n \n 713 | \n \n \n - | \n \n \n - | \n \n \n 171 | \n \n \n - | \n \n \n 1,104 | \n \n \n 461 | \n \n \n 128 | \n
| \n \n Reinsurance assets | \n \n \n 16,021 | \n \n \n - | \n \n \n 14,141 | \n \n \n 732 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 14,872 | \n \n \n - | \n \n \n 1,149 | \n
| \n \n On December 31 | \n \n \n 294,597 | \n \n \n 271 | \n \n \n 15,177 | \n \n \n 813 | \n \n \n 23,694 | \n \n \n 171 | \n \n \n - | \n \n \n 40,127 | \n \n \n 13,462 | \n \n \n 267,932 | \n
| \n \n 2023 | \n \n \n Maximum exposure to credit risk | \n \n \n Cash | \n \n \n Securities | \n \n \n Letters of credit / guaran- | \n \n \n Real estate property | \n \n \n Master netting agree- | \n \n \n Other | \n \n \n Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 55,811 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n 55,718 | \n
| \n \n Money market and other short-term investments | \n \n \n 8,695 | \n \n \n - | \n \n \n 442 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 442 | \n \n \n 24 | \n \n \n 8,277 | \n
| \n \n Loans | \n \n \n 10,183 | \n \n \n 31 | \n \n \n - | \n \n \n 20 | \n \n \n 23,711 | \n \n \n - | \n \n \n - | \n \n \n 23,762 | \n \n \n 13,579 | \n \n \n - | \n
| \n \n Unconsolidated investment funds | \n \n \n 167,411 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 167,411 | \n
| \n \n Deposits with financial institutes | \n \n \n 2,289 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,289 | \n
| \n \n Other investments | \n \n \n 5,040 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,040 | \n
| \n \n Derivative assets | \n \n \n 1,429 | \n \n \n 832 | \n \n \n 669 | \n \n \n - | \n \n \n - | \n \n \n 373 | \n \n \n - | \n \n \n 1,875 | \n \n \n 550 | \n \n \n 104 | \n
| \n \n Reinsurance assets | \n \n \n 16,608 | \n \n \n - | \n \n \n 13,416 | \n \n \n 82 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 13,498 | \n \n \n - | \n \n \n 3,110 | \n
| \n \n On December 31 | \n \n \n 267,465 | \n \n \n 864 | \n \n \n 14,528 | \n \n \n 194 | \n \n \n 23,711 | \n \n \n 373 | \n \n \n - | \n \n \n 39,669 | \n \n \n 14,153 | \n \n \n 241,949 | \n
Several bonds in Aegon's Americas' portfolio are guaranteed by monoline insurance companies. This is shown in the table above in\u00a0the column Letters of credit / guarantees.
\nThe collateral reported for the money market and short-term investments are related to tri-party repurchase agreements (repos). Within tri-party repos, Aegon invests under short-term reverse repurchase agreements and the counterparty posts collateral to a third party custodian. The collateral posted is typically high-quality, short-term securities and is only accessible for or available to Aegon in the event the counterparty defaults.
The following table contains an analysis of Aegon\u2019s credit risk exposure for debt instruments for which an ECL allowance is\u00a0recognized. See note 4.2.6 Expected credit loss for a more detailed description of ECL measurement. All asset categories not presented here are\u00a0determined to have non-material credit risk or to be of short-term nature (cash and cash equivalents, other receivables). The\u00a0gross carrying amount of financial assets below also represents Aegon\u2019s maximum exposure to credit risk on these assets.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n\n \n ECL staging | \n \n | \n\n | \n||||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Financial assets | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n AAA | \n \n \n 3,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,295 | \n \n \n 2,961 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,961 | \n
| \n \n AA | \n \n \n 9,100 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 9,101 | \n \n \n 9,217 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 9,219 | \n
| \n \n A | \n \n \n 19,443 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19,443 | \n \n \n 18,410 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 18,411 | \n
| \n \n BBB | \n \n \n 20,724 | \n \n \n 7 | \n \n \n - | \n \n \n 1 | \n \n \n 20,732 | \n \n \n 17,534 | \n \n \n 11 | \n \n \n - | \n \n \n 1 | \n \n \n 17,547 | \n
| \n \n BB | \n \n \n 949 | \n \n \n 157 | \n \n \n - | \n \n \n - | \n \n \n 1,106 | \n \n \n 899 | \n \n \n 136 | \n \n \n - | \n \n \n - | \n \n \n 1,035 | \n
| \n \n B | \n \n \n 361 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 456 | \n \n \n 431 | \n \n \n 120 | \n \n \n 3 | \n \n \n - | \n \n \n 554 | \n
| \n \n CCC and lower | \n \n \n 85 | \n \n \n 79 | \n \n \n 289 | \n \n \n 91 | \n \n \n 544 | \n \n \n 120 | \n \n \n 91 | \n \n \n 319 | \n \n \n 99 | \n \n \n 629 | \n
| \n \n Net carrying amount | \n \n \n 53,957 | \n \n \n 337 | \n \n \n 291 | \n \n \n 92 | \n \n \n 54,677 | \n \n \n 49,571 | \n \n \n 358 | \n \n \n 325 | \n \n \n 100 | \n \n \n 50,354 | \n
| \n \n Expected credit loss | \n \n \n \n \n (187) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
The real estate collateral for mortgages includes both residential and commercial properties. The collateral for commercial mortgage loans in Aegon Americas is measured at fair value. At a minimum on an annual basis, a fair value is estimated for each individual real estate property that has been pledged as collateral. When a loan is originally provided, an external appraisal is obtained to estimate the value of the property. In subsequent years, the value is typically estimated internally using various professionally accepted valuation methodologies. Internal appraisals are performed by qualified, professionally accredited personnel. International valuation standards are used, and the most significant assumptions made during the valuation of real estate are the current cost of reproducing or replacing the property, the value that the property's net earning power will support, and the value indicated by recent sales of comparable properties. Valuations are primarily supported by market evidence.\u00a0
Cash collateral for mortgage loans includes the savings that have been received to redeem the underlying mortgage loans at\u00a0redemption date. These savings are part of the credit side of the statement of financial position but reduce the credit risk for\u00a0the mortgage loan as a whole.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n\n \n ECL staging | \n \n | \n\n | \n||||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans at | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Internal grade 1 | \n \n \n 977 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 1,013 | \n \n \n 947 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 947 | \n
| \n \n Internal grade 2 | \n \n \n 4,410 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n \n \n 3,929 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 3,930 | \n
| \n \n Internal grade 3 | \n \n \n 4,539 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 4,546 | \n \n \n 4,460 | \n \n \n 24 | \n \n \n - | \n \n \n - | \n \n \n 4,485 | \n
| \n \n Internal grade 4 | \n \n \n 644 | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 654 | \n \n \n 778 | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 785 | \n
| \n \n Internal grade 5 | \n \n \n 4 | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 81 | \n \n \n 33 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 35 | \n
| \n \n Internal grade 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Internal grade 7 or lower | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Gross carrying amount | \n \n \n 10,573 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,183 | \n
| \n \n Expected credit loss | \n \n \n \n \n (38) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n \n \n (24) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Total | \n \n \n 10,535 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n \n \n 10,123 | \n \n \n 33 | \n \n \n - | \n \n \n - | \n \n \n 10,156 | \n
As significant portion of instruments have been designated as FVPL. On December 31, 2024, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 1,488 million (December 2023: EUR\u00a01,736 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following changes in fair value have been recognized for these investments:
| \n | \n\n \n 2024 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \n
| \n | \n\n \n 2023 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 46 | \n \n \n \n \n (1) \n | \n \n \n 45 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n 20 | \n \n \n - | \n \n \n 20 | \n
The change in fair value attributable to changes in credit risk is determined as the total amount of the change in fair value that is not attributable to changes in the observable benchmark interest rate or in other market rates. This approach provides a\u00a0reasonable approximation of changes attributable to credit risk because fixed income securities valuation is mainly driven by two factors \u2013 interest rates and credit spreads, and the fair value change due to credit risk can therefore be estimated by removing impacts from non-credit related factors.
\nThe master netting agreements column in the table relates to derivative liability positions that are used in Aegon's credit risk management. The offset in the master netting agreements column includes balances where there is a legally enforceable right of offset, but no intention to settle these balances on a net basis under normal circumstances. As a result, there is a net exposure for credit risk management purposes. However, as there is no intention to settle these balances on a net basis, they\u00a0do not qualify for net presentation for accounting purposes.
\nThe collateral related to the reinsurance assets includes assets in trust that are held by the reinsurer for the benefit of Aegon. The assets in trust can be accessed to pay policyholder benefits in the event the reinsurers fail to perform under the terms of their contract. Further information on the related reinsurance transactions is included in note 29 Insurance contracts.
\nAegon employs a range of policies and practices to mitigate credit risk and the most common of these is accepting collateral\u00a0for funds advanced. The Group has internal policies on the acceptability of specific classes of collateral or credit\u00a0risk mitigation.\u00a0
\nOn December 31, 2024, the Group held no collateral that was obtained during the year (EUR 0 in 2023) by taking\u00a0possession of collateral held as security against receivables. The Group\u2019s policy is to pursue the timely realization of\u00a0the collateral in an orderly manner. Aegon does not generally use the non-cash collateral for its own operations.
\nAegon manages credit risk exposure by individual counterparty, sector and asset class, including cash positions. Normally,\u00a0Aegon mitigates credit risk in derivative contracts by entering into credit support agreement, where practical, and in ISDA master netting agreements for most of Aegon's legal entities to facilitate Aegon's right to offset credit risk exposure.
The main counterparties to these transactions are investment banks which are typically rated \"A\" or higher. The credit support agreement will normally dictate the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of derivative trades, comprised mostly of interest rate swaps, equity swaps, currency swaps and credit swaps. Collateral received is mainly cash (USD\u00a0and EUR). The credit support agreements that outline the acceptable collateral require high-quality instruments to be posted. Over\u00a0the last three years, there was no default with any derivatives counterparty. The credit risk associated with financial assets subject to a master netting agreement is eliminated only to the extent that financial liabilities due to the same counterparty will be settled after the assets are realized. Eligible derivative transactions are traded via Central Clearing Houses as required by EMIR and the Dodd-Frank act. Credit risk in these transactions is mitigated through posting of initial and\u00a0variation margins.
Aegon may also mitigate credit risk in reinsurance contracts by including downgrade clauses that allow the recapture of business, retaining ownership of assets required to support liabilities ceded or by requiring the reinsurer to hold assets in\u00a0trust. For the resulting net credit risk exposure, Aegon employs deterministic and stochastic credit risk modeling in order to\u00a0assess the Group's credit risk profile, associated earnings and capital implications due to various credit loss scenarios.
Aegon operates a Credit Name Limit Policy (CNLP) under which limits are placed on the aggregate exposure that it has to any one counterparty. Limits are placed on the exposure at both group level and individual country units. The limits also vary by a\u00a0rating system, which is a composite of the main rating agencies (S&P, Moody's and Fitch) and Aegon's internal rating of the\u00a0counterparty. If an exposure exceeds the stated limit, then the exposure must be reduced to the limit for the country unit and rating category as soon as possible. Exceptions to these limits can only be made after explicit approval from Aegon's\u00a0Group Risk and Capital Committee (GRCC). The policy is reviewed regularly.
The Group offers products that cover inflation risk for policyholders. To hedge the inflation risk, the Group invests in financial instruments of which the value depends on the rate of inflation. This significantly reduces the net exposure to inflation risk.
\nAegon group level long-term counterparty exposure limits are as follows:
\n| \n \n Amounts in EUR million | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n AAA | \n \n \n 900 | \n \n \n 900 | \n
| \n \n AA | \n \n \n 900 | \n \n \n 900 | \n
| \n \n A | \n \n \n 675 | \n \n \n 675 | \n
| \n \n BBB | \n \n \n 450 | \n \n \n 450 | \n
| \n \n BB | \n \n \n 250 | \n \n \n 250 | \n
| \n \n B | \n \n \n 125 | \n \n \n 125 | \n
| \n \n CCC or lower | \n \n \n 50 | \n \n \n 50 | \n
The ratings distribution of general account portfolios of Aegon's major reporting units, excluding reinsurance assets, are\u00a0presented in the table that follows, organized by rating category and split by assets that are valued at fair value and\u00a0assets that\u00a0are valued at amortized cost. Aegon uses a composite rating based on a combination of the external ratings of S&P, Moody's,\u00a0Fitch, the National Association of Insurance Commissioners (NAIC; for the United States only), and internal ratings. The\u00a0rating used\u00a0is the lower of the external rating and the internal rating.
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 1 | \n ||||||
| \n \n Financial | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Total carrying value | \n
| \n \n AAA | \n \n \n 1,013 | \n \n \n 5,265 | \n \n \n - | \n \n \n 25 | \n \n \n - | \n \n \n 37 | \n \n \n - | \n \n \n 73 | \n \n \n 1,013 | \n \n \n 5,400 | \n \n \n 6,412 | \n
| \n \n AA | \n \n \n 4,421 | \n \n \n 9,114 | \n \n \n - | \n \n \n 525 | \n \n \n - | \n \n \n 167 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n \n \n 9,805 | \n \n \n 14,226 | \n
| \n \n A | \n \n \n 4,546 | \n \n \n 19,771 | \n \n \n - | \n \n \n 220 | \n \n \n 1 | \n \n \n 684 | \n \n \n 24 | \n \n \n - | \n \n \n 4,571 | \n \n \n 20,674 | \n \n \n 25,245 | \n
| \n \n BBB | \n \n \n 654 | \n \n \n 20,895 | \n \n \n - | \n \n \n 59 | \n \n \n - | \n \n \n 451 | \n \n \n 3 | \n \n \n - | \n \n \n 668 | \n \n \n 21,405 | \n \n \n 22,073 | \n
| \n \n BB | \n \n \n 4 | \n \n \n 1,162 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 42 | \n \n \n 1 | \n \n \n - | \n \n \n 4 | \n \n \n 1,205 | \n \n \n 1,209 | \n
| \n \n B | \n \n \n 78 | \n \n \n 487 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n 78 | \n \n \n 492 | \n \n \n 570 | \n
| \n \n CCC or lower | \n \n \n - | \n \n \n 720 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n 8 | \n \n \n - | \n \n \n 8 | \n \n \n 726 | \n \n \n 733 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 4,844 | \n \n \n - | \n \n \n 740 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 54 | \n \n \n - | \n \n \n 5,668 | \n \n \n 5,668 | \n
| \n \n Total | \n \n \n 10,715 | \n \n \n 62,258 | \n \n \n - | \n \n \n 1,569 | \n \n \n 1 | \n \n \n 1,395 | \n \n \n 36 | \n \n \n 126 | \n \n \n 10,763 | \n \n \n 65,375 | \n \n \n 76,138 | \n
| \n \n ECL on financial assets | \n \n \n \n \n (118) \n | \n \n \n \n \n (327) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n \n \n (341) \n | \n \n \n \n \n (459) \n | \n
| \n \n On December 31, 2024 | \n \n \n 10,597 | \n \n \n 62,258 | \n \n \n - | \n \n \n 1,569 | \n \n \n 1 | \n \n \n 1,395 | \n \n \n 36 | \n \n \n 126 | \n \n \n 10,645 | \n \n \n 65,375 | \n \n \n 76,020 | \n
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 1 | \n ||||||
| \n \n Financial | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Amortized | \n \n \n Fair value | \n \n \n Total carrying value | \n
| \n \n AAA | \n \n \n 947 | \n \n \n 6,836 | \n \n \n - | \n \n \n 38 | \n \n \n - | \n \n \n 35 | \n \n \n 52 | \n \n \n 123 | \n \n \n 998 | \n \n \n 7,033 | \n \n \n 8,031 | \n
| \n \n AA | \n \n \n 3,930 | \n \n \n 9,191 | \n \n \n - | \n \n \n 514 | \n \n \n - | \n \n \n 161 | \n \n \n - | \n \n \n - | \n \n \n 3,930 | \n \n \n 9,866 | \n \n \n 13,796 | \n
| \n \n A | \n \n \n 4,485 | \n \n \n 19,474 | \n \n \n - | \n \n \n 220 | \n \n \n 1 | \n \n \n 791 | \n \n \n - | \n \n \n - | \n \n \n 4,486 | \n \n \n 20,486 | \n \n \n 24,972 | \n
| \n \n BBB | \n \n \n 785 | \n \n \n 17,679 | \n \n \n - | \n \n \n 124 | \n \n \n - | \n \n \n 466 | \n \n \n - | \n \n \n - | \n \n \n 803 | \n \n \n 18,269 | \n \n \n 19,072 | \n
| \n \n BB | \n \n \n 33 | \n \n \n 1,084 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 41 | \n \n \n - | \n \n \n - | \n \n \n 33 | \n \n \n 1,126 | \n \n \n 1,160 | \n
| \n \n B | \n \n \n 2 | \n \n \n 570 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n 579 | \n \n \n 581 | \n
| \n \n CCC or lower | \n \n \n - | \n \n \n 986 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 992 | \n \n \n 992 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 4,444 | \n \n \n - | \n \n \n 797 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 5,286 | \n \n \n 5,286 | \n
| \n \n Total | \n \n \n 10,182 | \n \n \n 60,264 | \n \n \n - | \n \n \n 1,695 | \n \n \n 1 | \n \n \n 1,514 | \n \n \n 52 | \n \n \n 124 | \n \n \n 10,253 | \n \n \n 63,638 | \n \n \n 73,891 | \n
| \n \n ECL on financial assets | \n \n \n \n \n (26) \n | \n \n \n \n \n (228) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n \n \n \n \n (238) \n | \n \n \n \n \n (263) \n | \n
| \n \n On December 31, 2023 | \n \n \n 10,156 | \n \n \n 60,264 | \n \n \n - | \n \n \n 1,695 | \n \n \n 1 | \n \n \n 1,514 | \n \n \n 52 | \n \n \n 124 | \n \n \n 10,227 | \n \n \n 63,638 | \n \n \n 73,865 | \n
The following table shows the credit quality of the reinsurance contracts included in the statement of financial position:
| \n \n Carrying value | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n AAA | \n \n \n - | \n \n \n - | \n
| \n \n AA | \n \n \n 1,087 | \n \n \n 1,245 | \n
| \n \n A | \n \n \n 14,041 | \n \n \n 14,089 | \n
| \n \n Below A | \n \n \n 3 | \n \n \n 4 | \n
| \n \n Not rated | \n \n \n 587 | \n \n \n 662 | \n
| \n \n On December 31 | \n \n \n 15,719 | \n \n \n 16,000 | \n
The tables that follow present specific credit risk concentration information for general account financial assets.
| \n \n Credit risk concentrations \u2013 debt securities | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 1 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n \n \n Residential mortgage-backed securities (RMBSs) \n | \n \n \n 684 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 684 | \n \n \n \n \n (19) \n | \n
| \n \n \n \n Commercial mortgage-backed securities (CMBSs) \n | \n \n \n 2,469 | \n \n \n 65 | \n \n \n 47 | \n \n \n - | \n \n \n 2,582 | \n \n \n \n \n (22) \n | \n
| \n \n Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | \n \n \n 582 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 585 | \n \n \n - | \n
| \n \n ABSs \u2013 Other | \n \n \n 4,761 | \n \n \n 54 | \n \n \n 49 | \n \n \n 88 | \n \n \n 4,952 | \n \n \n \n \n (16) \n | \n
| \n \n Financial - Banking | \n \n \n 3,751 | \n \n \n 172 | \n \n \n 178 | \n \n \n - | \n \n \n 4,101 | \n \n \n \n \n (19) \n | \n
| \n \n Financial - Other | \n \n \n 10,464 | \n \n \n 24 | \n \n \n 224 | \n \n \n 46 | \n \n \n 10,758 | \n \n \n \n \n (57) \n | \n
| \n \n Capital goods and other industry | \n \n \n 3,639 | \n \n \n 24 | \n \n \n 79 | \n \n \n - | \n \n \n 3,742 | \n \n \n \n \n (31) \n | \n
| \n \n Communications & Technology | \n \n \n 4,642 | \n \n \n 4 | \n \n \n 112 | \n \n \n - | \n \n \n 4,758 | \n \n \n \n \n (58) \n | \n
| \n \n Consumer cyclical | \n \n \n 3,641 | \n \n \n 25 | \n \n \n 91 | \n \n \n - | \n \n \n 3,757 | \n \n \n \n \n (39) \n | \n
| \n \n Consumer non-cyclical | \n \n \n 5,987 | \n \n \n 49 | \n \n \n 116 | \n \n \n - | \n \n \n 6,151 | \n \n \n \n \n (31) \n | \n
| \n \n Energy | \n \n \n 2,766 | \n \n \n 27 | \n \n \n 51 | \n \n \n - | \n \n \n 2,844 | \n \n \n \n \n (13) \n | \n
| \n \n Transportation | \n \n \n 1,786 | \n \n \n - | \n \n \n 29 | \n \n \n - | \n \n \n 1,816 | \n \n \n \n \n (6) \n | \n
| \n \n Utility | \n \n \n 4,763 | \n \n \n 16 | \n \n \n 54 | \n \n \n - | \n \n \n 4,833 | \n \n \n \n \n (12) \n | \n
| \n \n Government bonds | \n \n \n 6,926 | \n \n \n 370 | \n \n \n 286 | \n \n \n 18 | \n \n \n 7,601 | \n \n \n \n \n (18) \n | \n
| \n \n On December 31, 2024 | \n \n \n 56,861 | \n \n \n 830 | \n \n \n 1,320 | \n \n \n 152 | \n \n \n 59,162 | \n \n \n \n \n (341) \n | \n
| \n \n Credit risk concentrations \u2013 debt securities | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 1 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n \n \n Residential mortgage-backed securities (RMBSs) \n | \n \n \n 933 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 933 | \n \n \n \n \n (13) \n | \n
| \n \n \n \n Commercial mortgage-backed securities (CMBSs) \n | \n \n \n 2,216 | \n \n \n 73 | \n \n \n 34 | \n \n \n - | \n \n \n 2,323 | \n \n \n \n \n (17) \n | \n
| \n \n Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans | \n \n \n 557 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 560 | \n \n \n - | \n
| \n \n ABSs \u2013 Other | \n \n \n 2,905 | \n \n \n 53 | \n \n \n 28 | \n \n \n 52 | \n \n \n 3,037 | \n \n \n \n \n (9) \n | \n
| \n \n Financial - Banking | \n \n \n 3,412 | \n \n \n 173 | \n \n \n 201 | \n \n \n - | \n \n \n 3,786 | \n \n \n \n \n (14) \n | \n
| \n \n Financial - Other | \n \n \n 11,909 | \n \n \n 38 | \n \n \n 289 | \n \n \n 97 | \n \n \n 12,332 | \n \n \n \n \n (33) \n | \n
| \n \n Capital goods and other industry | \n \n \n 3,443 | \n \n \n 24 | \n \n \n 143 | \n \n \n - | \n \n \n 3,609 | \n \n \n \n \n (23) \n | \n
| \n \n Communications & Technology | \n \n \n 4,242 | \n \n \n 2 | \n \n \n 140 | \n \n \n - | \n \n \n 4,384 | \n \n \n \n \n (30) \n | \n
| \n \n Consumer cyclical | \n \n \n 3,197 | \n \n \n 29 | \n \n \n 85 | \n \n \n - | \n \n \n 3,311 | \n \n \n \n \n (20) \n | \n
| \n \n Consumer non-cyclical | \n \n \n 5,661 | \n \n \n 74 | \n \n \n 111 | \n \n \n - | \n \n \n 5,846 | \n \n \n \n \n (24) \n | \n
| \n \n Energy | \n \n \n 2,821 | \n \n \n 20 | \n \n \n 55 | \n \n \n - | \n \n \n 2,896 | \n \n \n \n \n (19) \n | \n
| \n \n Transportation | \n \n \n 1,633 | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 1,663 | \n \n \n \n \n (6) \n | \n
| \n \n Utility | \n \n \n 4,190 | \n \n \n 73 | \n \n \n 75 | \n \n \n - | \n \n \n 4,338 | \n \n \n \n \n (10) \n | \n
| \n \n Government bonds | \n \n \n 7,349 | \n \n \n 338 | \n \n \n 265 | \n \n \n 17 | \n \n \n 7,969 | \n \n \n \n \n (20) \n | \n
| \n \n On December 31, 2023 | \n \n \n 54,467 | \n \n \n 898 | \n \n \n 1,458 | \n \n \n 166 | \n \n \n 56,988 | \n \n \n \n \n (237) \n | \n
| \n \n Credit risk concentrations \u2013 Government bonds per country of risk | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n
| \n \n United States | \n \n \n 6,095 | \n \n \n - | \n \n \n 69 | \n \n \n - | \n \n \n 6,164 | \n
| \n \n Netherlands | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n \n United Kingdom | \n \n \n - | \n \n \n 316 | \n \n \n - | \n \n \n 18 | \n \n \n 334 | \n
| \n \n Austria | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n 10 | \n
| \n \n Belgium | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n \n France | \n \n \n - | \n \n \n 28 | \n \n \n 8 | \n \n \n - | \n \n \n 36 | \n
| \n \n Hungary | \n \n \n 21 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 25 | \n
| \n \n Indonesia | \n \n \n 69 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 69 | \n
| \n \n Luxembourg | \n \n \n - | \n \n \n 5 | \n \n \n 1 | \n \n \n - | \n \n \n 7 | \n
| \n \n Spain | \n \n \n - | \n \n \n - | \n \n \n 161 | \n \n \n - | \n \n \n 161 | \n
| \n \n Rest of Europe | \n \n \n 82 | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 93 | \n
| \n \n Rest of world | \n \n \n 660 | \n \n \n 20 | \n \n \n 16 | \n \n \n - | \n \n \n 695 | \n
| \n \n On December 31, 2024 | \n \n \n 6,926 | \n \n \n 370 | \n \n \n 286 | \n \n \n 18 | \n \n \n 7,601 | \n
| \n \n Credit risk concentrations \u2013 Government bonds per country of risk | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 1 | \n
| \n \n United States | \n \n \n 6,632 | \n \n \n - | \n \n \n 62 | \n \n \n - | \n \n \n 6,694 | \n
| \n \n Netherlands | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n \n United Kingdom | \n \n \n - | \n \n \n 289 | \n \n \n - | \n \n \n 17 | \n \n \n 307 | \n
| \n \n Austria | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n 10 | \n
| \n \n Belgium | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n \n France | \n \n \n - | \n \n \n 28 | \n \n \n 8 | \n \n \n - | \n \n \n 36 | \n
| \n \n Hungary | \n \n \n 20 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 24 | \n
| \n \n Indonesia | \n \n \n 71 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 71 | \n
| \n \n Luxembourg | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n \n Spain | \n \n \n - | \n \n \n - | \n \n \n 153 | \n \n \n - | \n \n \n 153 | \n
| \n \n Rest of Europe | \n \n \n 46 | \n \n \n - | \n \n \n 13 | \n \n \n - | \n \n \n 58 | \n
| \n \n Rest of world | \n \n \n 581 | \n \n \n 21 | \n \n \n 8 | \n \n \n - | \n \n \n 610 | \n
| \n \n On December 31, 2023 | \n \n \n 7,349 | \n \n \n 338 | \n \n \n 265 | \n \n \n 17 | \n \n \n 7,969 | \n
| \n \n Credit risk concentrations \u2013 Credit rating | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n Total 2024 | \n
| \n \n AAA | \n \n \n 169 | \n \n \n 434 | \n \n \n 2,888 | \n \n \n 1,892 | \n \n \n 5,383 | \n
| \n \n AA | \n \n \n 5,857 | \n \n \n 2,686 | \n \n \n 1,202 | \n \n \n - | \n \n \n 9,745 | \n
| \n \n A | \n \n \n 823 | \n \n \n 16,127 | \n \n \n 3,169 | \n \n \n - | \n \n \n 20,119 | \n
| \n \n BBB | \n \n \n 417 | \n \n \n 20,099 | \n \n \n 847 | \n \n \n - | \n \n \n 21,363 | \n
| \n \n BB | \n \n \n 265 | \n \n \n 834 | \n \n \n 99 | \n \n \n - | \n \n \n 1,198 | \n
| \n \n B | \n \n \n 53 | \n \n \n 398 | \n \n \n 94 | \n \n \n - | \n \n \n 545 | \n
| \n \n CCC or lower | \n \n \n 18 | \n \n \n 205 | \n \n \n 503 | \n \n \n - | \n \n \n 726 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 83 | \n \n \n 83 | \n
| \n \n On December 31, 2024 1 | \n \n \n 7,601 | \n \n \n 40,783 | \n \n \n 8,802 | \n \n \n 1,976 | \n \n \n 59,162 | \n
| \n \n Credit risk concentrations \u2013 Credit rating | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n Total 2023 1 | \n
| \n \n AAA | \n \n \n 166 | \n \n \n 503 | \n \n \n 2,462 | \n \n \n 3,915 | \n \n \n 7,046 | \n
| \n \n AA | \n \n \n 6,444 | \n \n \n 2,262 | \n \n \n 1,160 | \n \n \n - | \n \n \n 9,866 | \n
| \n \n A | \n \n \n 723 | \n \n \n 16,352 | \n \n \n 2,101 | \n \n \n - | \n \n \n 19,176 | \n
| \n \n BBB | \n \n \n 354 | \n \n \n 17,408 | \n \n \n 404 | \n \n \n - | \n \n \n 18,165 | \n
| \n \n BB | \n \n \n 205 | \n \n \n 838 | \n \n \n 78 | \n \n \n - | \n \n \n 1,121 | \n
| \n \n B | \n \n \n 69 | \n \n \n 496 | \n \n \n 30 | \n \n \n - | \n \n \n 596 | \n
| \n \n CCC or lower | \n \n \n 9 | \n \n \n 245 | \n \n \n 618 | \n \n \n - | \n \n \n 872 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 144 | \n \n \n 147 | \n
| \n \n On December 31, 2023 2 | \n \n \n 7,969 | \n \n \n 38,106 | \n \n \n 6,853 | \n \n \n 4,059 | \n \n \n 56,988 | \n
| \n \n Credit risk concentrations \u2013 mortgage loans | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n Agricultural | \n \n \n 47 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 47 | \n \n \n - | \n
| \n \n Apartment | \n \n \n 5,618 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,618 | \n \n \n \n \n (8) \n | \n
| \n \n Industrial | \n \n \n 474 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 474 | \n \n \n - | \n
| \n \n Office | \n \n \n 1,270 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,270 | \n \n \n \n \n (109) \n | \n
| \n \n Retail | \n \n \n 1,384 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,384 | \n \n \n \n \n (1) \n | \n
| \n \n Other commercial | \n \n \n 1,885 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1,886 | \n \n \n - | \n
| \n \n On December 31, 2024 | \n \n \n 10,679 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 10,680 | \n \n \n \n \n (118) \n | \n
| \n \n Credit risk concentrations \u2013 mortgage loans | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 | \n \n \n Of which past due and / or impaired assets | \n
| \n \n Agricultural | \n \n \n 46 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 46 | \n \n \n - | \n
| \n \n Apartment | \n \n \n 5,365 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,365 | \n \n \n \n \n (10) \n | \n
| \n \n Industrial | \n \n \n 410 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 410 | \n \n \n - | \n
| \n \n Office | \n \n \n 1,300 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,300 | \n \n \n \n \n (14) \n | \n
| \n \n Retail | \n \n \n 1,372 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,372 | \n \n \n \n \n (1) \n | \n
| \n \n Other commercial | \n \n \n 1,663 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1,664 | \n \n \n - | \n
| \n \n On December 31, 2023 | \n \n \n 10,156 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 10,156 | \n \n \n \n \n (26) \n | \n
Aegon's investments in unconsolidated structured entities such as RMBSs, CMBSs, and ABSs and investment funds are presented in the line item \"Investments\" of the statement of financial position. Aegon's interests in these unconsolidated structured entities can be characterized as basic interests, Aegon does not have loans, derivatives, guarantees, or other interests related to these investments. Any existing commitments such as future purchases of interests in investment funds are disclosed in note 39 Commitments and contingencies.
For debt instruments, specifically for RMBSs, CMBSs and ABSs, the maximum exposure to loss is equal to the carrying amount which is reflected in the credit risk concentration table regarding debt securities and money market investments. To\u00a0manage credit risk Aegon invests primarily in senior notes of\u00a0RMBSs, CMBSs and ABSs. The composition of the RMBSs, CMBSs and ABSs\u00a0portfolios of Aegon are widely dispersed looking at the individual amount per entity, therefore Aegon only\u00a0has non-controlling interests in individual unconsolidated structured entities. Furthermore, these investments are not originated by Aegon.
As collateral manager of CLOs issued in Europe, to the extent that it acts as an originator-manager, Aegon is subject to risk retention requirements to hold investments in the CLOs it manages. Such risk retention is often participation in the subordinated tranches of the structure which concentrates credit risk of the underlying assets of the CLO. Aegon\u2019s maximum exposure to credit risk is the carrying amount of these investments, which is EUR 192,775 million on December 31, 2024 (2023: EUR 167,411 million).
Except for commitments as noted in note 39 Commitments and contingencies,\u00a0Aegon did not provide, nor is required to provide financial or other support to unconsolidated structured entities. Nor does Aegon have intentions to provide financial or other support to unconsolidated structured entities in which Aegon has an interest or previously had an interest.
For RMBSs, CMBSs and ABSs\u00a0in which Aegon has an interest at reporting date, the following table presents the total income received from those interests. The Investments column reflects the carrying values recognized in the statement of financial position of Aegon's interests in RMBSs, CMBSs, and ABSs.
| \n | \n\n \n Total income for the year ended December 31, 2024 | \n \n \n December 31, 2024 | \n ||
| \n | \n\n \n Interest income | \n \n \n Total gains and losses on sale of assets | \n \n \n Total | \n \n \n Investments | \n
| \n \n Residential mortgage-backed securities | \n \n \n 58 | \n \n \n \n \n (13) \n | \n \n \n 45 | \n \n \n 684 | \n
| \n \n Commercial mortgage-backed securities | \n \n \n 97 | \n \n \n 98 | \n \n \n 194 | \n \n \n 2,582 | \n
| \n \n Asset-backed securities | \n \n \n 38 | \n \n \n 12 | \n \n \n 50 | \n \n \n 585 | \n
| \n \n ABSs - Other | \n \n \n 206 | \n \n \n 58 | \n \n \n 264 | \n \n \n 4,952 | \n
| \n \n Total | \n \n \n 399 | \n \n \n 155 | \n \n \n 554 | \n \n \n 8,802 | \n
| \n | \n\n \n Total income for the year ended December 31, 2023 | \n \n \n December 31, 2023 | \n ||
| \n | \n\n \n Interest income | \n \n \n Total gains and losses on sale of assets | \n \n \n Total | \n \n \n Investments | \n
| \n \n Residential mortgage-backed securities | \n \n \n 67 | \n \n \n \n \n (15) \n | \n \n \n 52 | \n \n \n 933 | \n
| \n \n Commercial mortgage-backed securities | \n \n \n 92 | \n \n \n 12 | \n \n \n 105 | \n \n \n 2,323 | \n
| \n \n Asset-backed securities | \n \n \n 40 | \n \n \n 14 | \n \n \n 54 | \n \n \n 560 | \n
| \n \n ABSs - Other | \n \n \n 134 | \n \n \n 57 | \n \n \n 191 | \n \n \n 3,037 | \n
| \n \n Total | \n \n \n 334 | \n \n \n 68 | \n \n \n 402 | \n \n \n 6,853 | \n
The estimation of credit exposure for risk management purposes is complex and requires the use of models, as the exposure varies with changes in market conditions, expected cash flows and the passage of time. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring, of the associated loss ratios and of default correlations between counterparties. Aegon measures credit risk using Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). This is similar to the approach used for the purposes of measuring the Expected Credit Loss (ECL) under IFRS 9. See section on ECL developments in the reporting period later in this note for more details.
Losses as a result of credit risk are a natural part of investing in fixed-income securities. The amount of and compensation for\u00a0this risk are related. A significant management measure to avoid excessive credit risk is to diversify and limit exposure to\u00a0individual issuers.
\nIFRS 9 outlines a \"three-stage\" model for impairment based on relative changes in credit quality since initial recognition:
A financial instrument that is not credit-impaired on initial recognition is classified in \"Stage 1\";
If a significant increase in credit risk (\"SICR\") since initial recognition is identified, the financial instrument is moved to \"Stage\u00a02\" but is not yet deemed to be credit-impaired (see \u201cSignificant increase in credit risk\u201d for further details);
If the financial instrument is credit-impaired, the financial instrument is then moved to \"Stage 3.\"
Credit risk is continuously monitored by Aegon in all the above stages.
Financial instruments in Stage 1 have their expected credit loss (ECL) measured at an amount equal to the portion of lifetime expected credit losses that result from default events possible within the follow 12 months. Financial instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit-impaired on initial recognition. Their ECL is always measured on a\u00a0lifetime basis.\u00a0
| \n | \n\n \n Stage 1 Impaired | \n \n \n Stage 2 Under-performing | \n \n \n Stage 3 Non-performing | \n \n \n \n \n Purchased or Originated Credit Impaired (POCI) \n | \n
| \n \n ECL | \n \n \n 12 month ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n
| \n \n Provision Trigger | \n \n \n n.a. | \n \n \n Quantitative and Qualitative Triggers | \n \n \n Qualitative Triggers | \n \n \n Qualitative Triggers | \n
| \n \n Days Past Due (\"DPD\") Backstop | \n \n \n \n \n Up to date and early arrears (< 30 DPD) \n | \n \n \n \n \n > 30 DPD (rebuttable presumption) \n | \n \n \n \n \n > 90 DPD (rebuttable presumption) \n | \n \n \n n.a. | \n
| \n \n Interest Income | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on net carrying amount | \n \n \n Interest calculated on net carrying amount using a credit-adjusted effective interest rate | \n
Following this assessment, IFRS 9 requires the incorporation of multiple, forward looking macro- scenarios to drive the ECL provision.
IFRS 9 requires that the measurement of ECL represent an unbiased probability-weighted amount that is to be determined by:
Evaluating a range of possible outcomes;\u00a0
Use reasonable and supportable information available without undue cost and effort about past events;
Current conditions; and\u00a0
Forecasts of future economic conditions.
When incorporating forward looking information, consideration should be given to the relevance of the information (and\u00a0the\u00a0availability of more relevant information) for each specific financial instrument or group of financial instruments. To\u00a0the extent relevant, forward-looking information used for the measurement of ECLs it needs to be consistent with that used\u00a0for\u00a0the\u00a0assessment of a significant increase in credit risk.
Credit losses are calculated as the product of projected probability of default, loss given default and exposure at default and are discounted using an appropriate discount rate. The ECL is determined as the probability weighted discounted credit losses that are determined for different scenarios (i.e. base, positive, adverse).\u00a0
Given the need to adapt the models to the different portfolio characteristics, all ECL models have different key judgments and assumptions. As such, the below paragraphs outline the key judgements and assumptions made by the Group in addressing the key requirements on a model-by-model basis.
The Group employs different models to calculate the ECL on different asset classes.
For bonds and private placements, the Group applies a global correlation model. It provides correlations of credit quality movements across different asset classes, linked with movements in the macro economy. A global correlation model is therefore used for determining the conditional PD and LGD, given a macroeconomic scenario. Unconditional PD and LGD curves are modelled with use of different methods for sovereign debt, corporate bonds and private placements.\u00a0
For commercial mortgage loans and mortgage-backed securities, the parameters are estimated with commercial mortgage metrics that use corporate bond PD and LGD estimates further adjusted with other assumptions based on debt service coverage and loan-to-value ratios.\u00a0
The Group applies a separate model for asset-backed securities, which pools the instruments based on the underlying collateral and estimates credit loss parameters collectively. Collateralized debt (loan) obligations (CDOs and CLOs) are special types of asset-backed securities to which a different set of models are applied depending on the region of the exposure.
\nAegon considers a financial instrument to have experienced a significant increase in credit risk when one or more of the following quantitative, qualitative or backstop criteria have been met:
| \n \n Asset class | \n \n \n Quantitative criteria | \n \n \n Qualitative criteria | \n \n \n Backstop criteria | \n
| \n \n Commercial mortgages | \n \n \n Relative change in Forward-in-Time Probability of Default | \n \n \n None | \n \n \n 60 days past due backstop | \n
| \n \n Private loans | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Debt securities | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Structured finance | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n 30 days past due backstop | \n
| \n \n Deposits with financial institutions | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Loan commitments | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n | \n\n | \n
| \n \n Financial guarantees | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n | \n\n | \n
The quantitative factor(s) should indicate whether the credit risk of an instrument has increased significantly since initial recognition. When making this assessment, Aegon shall use the change in the risk of a default occurring over the expected life\u00a0of the financial instrument. Aegon uses a mix of relative and absolute thresholds:
The relative threshold measures the relative increase in credit risk since origination.\u00a0
The absolute threshold defines a stage for each rating and is mainly used when the rating at origination is not available or when an instrument is already in default.
The relative thresholds are defined in two steps:
A PD-based statistical analysis is performed to determine an optimal PD threshold that provides the best predictor for\u00a0default;
The PD-based thresholds are translated into rating-based rules, which are more intuitive and practically applicable.
These PD thresholds can be translated into rating-based thresholds using standard Moody\u2019s rating to PD mappings. The\u00a0difference between the PD at origination and the PD corresponding to the threshold determines the number of notches that the rating must drop by. For example, for a one-year-old instrument with a one year remaining maturity this gives the following result:\u00a0
\n\nPD amounts used by Aegon are grouped into ranges in below table. Each range contains the minimum and maximum of PDs on both financial and corporate assets of a 1-10 year term. As Aegon US represents the Group the best, PD amounts of Americas is presented below.
| \n \n PD range 2024 | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0001 | \n \n \n 0.0021 | \n
| \n \n AA | \n \n \n 0.0002 | \n \n \n 0.0034 | \n
| \n \n A | \n \n \n 0.0006 | \n \n \n 0.0052 | \n
| \n \n BBB | \n \n \n 0.0017 | \n \n \n 0.0079 | \n
| \n \n BB | \n \n \n 0.0048 | \n \n \n 0.0131 | \n
| \n \n B | \n \n \n 0.0120 | \n \n \n 0.0307 | \n
| \n \n CCC or lower | \n \n \n 0.0196 | \n \n \n 1.0000 | \n
| \n \n PD range 2023 | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0002 | \n \n \n 0.0024 | \n
| \n \n AA | \n \n \n 0.0003 | \n \n \n 0.0037 | \n
| \n \n A | \n \n \n 0.0007 | \n \n \n 0.0057 | \n
| \n \n BBB | \n \n \n 0.0020 | \n \n \n 0.0085 | \n
| \n \n BB | \n \n \n 0.0055 | \n \n \n 0.0085 | \n
| \n \n B | \n \n \n 0.0138 | \n \n \n 0.0308 | \n
| \n \n CCC or lower | \n \n \n 0.0205 | \n \n \n 1.0000 | \n
For debt securities, private loans, structured finance securities and deposits with financial institutions the relative change of the credit rating is used as primary indicator to assess significant increase in credit risk, for this purpose external credit ratings are used.\u00a0
\nFor debt securities, private loans, structured finance securities and deposits with financial institutions the watchlist approach is applied as an additional qualitative criterion.\u00a0 The watchlist approach means exposure of instruments on the watchlist are intensively monitored. Financial assets are added to the watchlist based on whether their relative change in fair value has surpassed a predetermined threshold:
The fair value either drops to 80% and below the (amortized) cost price and stays there for six months; or
The fair value falls by 20% over 3 months; or
The fair value falls to 60% and below the (amortized) cost price.
In relation to debt securities and private loans, where a watchlist is used to monitor credit risk, this assessment is performed at the counterparty level and on a periodic basis. The criteria used to identify SICR are monitored and reviewed periodically for\u00a0appropriateness by the Group.
\nA backstop is applied to exposures considered to have experienced a significant increase in credit risk if the borrower is more than 30 days past due on its contractual payments in the case of structured finance, and 60 days in the case of commercial mortgage loans. No backstop is applied to the other asset classes.\u00a0
Aegon has used the low credit risk exemption for debt instruments. Debt instruments that have a credit rating that is responds with \"investment grade\" (rating \"BBB\" or higher) are considered as having low credit risk. As such, external and internal credit ratings are used respectively for these assets to assess whether a significant increase in credit risk has occurred.
Low credit risk exemption is applied for staging purposes on instruments rated BBB and higher.
\nFor loan commitments and financial guarantees, Aegon defines default in the same way as for the respective loan or financial instrument to which a commitment relates or a guarantee is issued (considering the factors described above).
\nAegon assesses a financial instrument to be in default or credit-impaired using the following criteria:
| \n \n Asset class | \n \n \n Quantitative criteria | \n \n \n Qualitative criteria | \n
| \n \n Commercial mortgages | \n \n \n 90 days past due backstop | \n \n \n Foreclosure | \n
| \n | \n\n | \n\n \n Sale at material credit-related economic loss | \n
| \n \n Debt securities and private loans | \n \n \n 5 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Breach of significant covenants without reasonably supportable waiver obtained | \n
| \n | \n\n | \n\n \n Distressed restructuring taking place | \n
| \n | \n\n | \n\n \n Bankruptcy or an equivalent of an injunction for the obligor was filed | \n
| \n | \n\n | \n\n \n Obligor was classified as default internally | \n
| \n \n Deposits with financial institution | \n \n \n 5 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Breach of significant covenants without reasonably supportable waiver obtained | \n
| \n | \n\n | \n\n \n Distressed restructuring taking place | \n
| \n | \n\n | \n\n \n Bankruptcy or an equivalent of an injunction for the obligor was filed | \n
| \n | \n\n | \n\n \n Obligor was classified as default internally | \n
| \n \n Structured securities | \n \n \n 90 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Loss coverage ratio (Ratio of credit-related losses to the par value of a debt security) is below 1 | \n
| \n \n Receivables | \n \n \n 90 days past due backstop | \n \n | \n
| \n \n Loan commitments | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n \n Defined as for the respective loans to which the commitment relates | \n
| \n \n Financial guarantee contracts | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n
Distressed restructuring means material forgiveness, or postponements of principal, interest, or where relevant, fees which is likely to result in a diminished financial obligation.\u00a0
In addition to the criteria included in the table above, Aegon identifies other indicators of unlikeliness to pay, which include but are not limited to the following:
A borrower\u2019s sources of recurring income are no longer available to meet the payments of installments;
There are justified concerns about a borrower\u2019s future ability to generate stable and sufficient cash flows;
The borrower\u2019s overall leverage level has significantly increased beyond applicable limits or there are justified expectations\u00a0of such changes to leverage;
For the exposures to an individual: default of a company fully owned by a single individual where this individual provided the\u00a0institution with a personal guarantee for all obligations of a company;
Material fraud; or
Death of a client.
All the criteria above have been applied to the financial instruments held by Aegon and are consistent with the definition of default used for internal credit risk management purposes. The definition of default has been applied consistently to model the Probability of Default, Exposure at Default throughout Aegon\u2019s expected loss calculations.
An instrument is considered to no longer be in default (i.e. to have \"cured\") when it no longer meets any of the default criteria for a consecutive period of six\u00a0months and an assessment has shown the obligor is no longer unlikely to pay. This period of six months considers the likelihood of a financial instrument returning to default status after cure using different possible cure definitions.
\nThe ECL is measured on either a \"12-month basis\" (Stage 1) or \"lifetime basis\" (Stages 2 and 3), depending on whether a\u00a0significant increase in credit risk has occurred since initial recognition or whether an asset is considered to be credit-impaired.\u00a0
The expected credit losses are the discounted product of the Probability of Default, Exposure at Default, and Loss\u00a0Given\u00a0Default, defined as follows:
The PD represents the likelihood of a borrower defaulting on its financial obligation (as per \u201cDefinition of default and credit-impaired\u201d above), either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.\u00a0
EAD is based on the amounts the Group expects to be owed at the time of default.\u00a0
Loss Given Default represents Aegon\u2019s expectation of the extent of loss on a defaulted exposure. LGD varies by\u00a0type\u00a0of\u00a0counterparty, type and seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at the time of default.
The discount rate used in the ECL calculation is the original effective interest rate or an approximation thereof. The lifetime PD is calculated for a financial instrument that results in default by summing the probabilities of all future developments which end-up in the ECL. All possible future developments are enumerated and for each future development a probability is calculated by statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.\u00a0
Forward-looking economic information is included in determining the 12-month and lifetime ECL, and lifetime PD by using a\u00a0set\u00a0of\u00a0variables describing the state of the macro economy as input in the calculation of the probability of default and prepayment.
As described above, and subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the Group measures ECL considering the risk of default over the maximum contractual period (including any borrower\u2019s extension options) over which Aegon is exposed to credit risk, even if the Group considers a\u00a0longer\u00a0period.\u00a0
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of significant increase in credit risk (SICR) and the calculation of ECL both incorporate forward-looking information. Aegon has performed historical analysis and identified the key economic variables impacting credit risk and expected credit losses for each portfolio.\u00a0
These economic variables and their associated impact on the ECL and Lifetime PD vary by financial instrument. Expert judgment has also been applied in this process. Forecasts of these economic variables (the \u201cbase economic scenario\u201d) give\u00a0the best estimate view of the economy over the next five years. After five years, to project the economic variables out for the\u00a0full remaining lifetime of each instrument, a mean reversion approach has been used, which means that economic variables tend to either a long run average rate (e.g. for unemployment) or a long run average growth rate (e.g. GDP) over a period of three years. Statistical regression analysis has been performed to understand the impact changes in these macro-economic variables have had historically on default and prepayment rates.
Using the base scenario as a starting point, three macro-economic scenarios are generated by applying shocks to the macro-economic variables in a positive and negative direction, taking into account their correlation as historically observed, resulting in a positive, neutral, or negative scenario. The shocks applied correspond to the historical average deviance from the long-term mean observed in the best/worst 10% of the historically observed quarters. The ECL is calculated for each of the three scenarios, multiplied by the scenario weighting, and summed. The use of multiple economic scenarios ensures that the ECL represents the best estimate of expected credit loss and is not merely the credit loss in the most likely scenario.
As with any economic forecasts, the projections and likelihoods of occurrence are subject to a high degree of inherent uncertainty, and therefore, the actual outcomes may be significantly different to those projected. The Group considers these\u00a0forecasts to represent its best estimate of the possible outcomes.
\nThe most significant period-end assumptions used for the ECL estimate are set out below. The scenarios \u201cbase\u201d, \u201cupside\u201d, and\u00a0\u201cdownside\u201d were used for all portfolios.
| \n \n Economic variable assumptions, December 31, 2024 | \n \n | \n\n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.33 | \n \n \n 4.26 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.43 | \n \n \n 4.35 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 3.17 | \n \n \n 3.74 | \n \n \n 3.94 | \n \n \n 4.04 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.08 | \n \n \n 4.09 | \n \n \n 4.05 | \n \n \n 4.01 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.13 | \n \n \n 3.44 | \n \n \n 3.42 | \n \n \n 3.42 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.23 | \n \n \n 7.46 | \n \n \n 6.18 | \n \n \n 5.00 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 419.04 | \n \n \n 424.10 | \n \n \n 434.08 | \n \n \n 448.91 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 439.72 | \n \n \n 456.26 | \n \n \n 471.39 | \n \n \n 489.21 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 354.16 | \n \n \n 369.92 | \n \n \n 385.26 | \n \n \n 401.39 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 23,973.45 | \n \n \n 24,343.12 | \n \n \n 24,819.66 | \n \n \n 25,356.09 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,319.86 | \n \n \n 24,807.47 | \n \n \n 25,341.29 | \n \n \n 25,943.15 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,959.57 | \n \n \n 23,369.09 | \n \n \n 24,147.35 | \n \n \n 24,980.66 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 5,912.89 | \n \n \n 5,814.62 | \n \n \n 6,098.72 | \n \n \n 6,483.85 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,264.59 | \n \n \n 6,132.21 | \n \n \n 6,356.19 | \n \n \n 6,630.75 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 3,867.82 | \n \n \n 4,095.95 | \n \n \n 4,899.05 | \n \n \n 5,712.91 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions, December 31, 2023 | \n \n | \n\n \n 2024 | \n \n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.11 | \n \n \n 4.04 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.21 | \n \n \n 4.13 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 2.31 | \n \n \n 3.24 | \n \n \n 3.71 | \n \n \n 3.89 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.03 | \n \n \n 4.06 | \n \n \n 3.97 | \n \n \n 3.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.08 | \n \n \n 3.41 | \n \n \n 3.34 | \n \n \n 3.35 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 7.56 | \n \n \n 6.90 | \n \n \n 5.70 | \n \n \n 4.88 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 400.12 | \n \n \n 393.70 | \n \n \n 394.21 | \n \n \n 403.50 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 419.87 | \n \n \n 423.62 | \n \n \n 428.16 | \n \n \n 439.72 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 339.91 | \n \n \n 347.29 | \n \n \n 352.66 | \n \n \n 363.59 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 22,900.95 | \n \n \n 23,303.78 | \n \n \n 23,825.37 | \n \n \n 24,397.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 23,354.42 | \n \n \n 23,883.09 | \n \n \n 24,451.63 | \n \n \n 25,020.82 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,039.64 | \n \n \n 22,368.94 | \n \n \n 23,099.22 | \n \n \n 23,768.80 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 4,672.66 | \n \n \n 4,796.24 | \n \n \n 5,043.19 | \n \n \n 5,368.63 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 4,950.59 | \n \n \n 5,058.20 | \n \n \n 5,256.09 | \n \n \n 5,490.26 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 2,904.90 | \n \n \n 3,226.25 | \n \n \n 3,942.26 | \n \n \n 4,603.90 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
The weightings assigned to each economic scenario were as follows:
| \n \n Weightings | \n \n \n Base | \n \n \n Upside | \n \n \n Downside | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2023 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking considerations not otherwise incorporated within the above scenarios, such as the impact of any regulatory, legislative or political changes, have also been considered, but are not deemed to have a material impact, and therefore, no adjustment has been made to the ECL for such factors. This process is reviewed and monitored for appropriateness on a quarterly basis.
\nThe Group writes-off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity; and (ii) where Aegon\u2019s recovery method is foreclosing on collateral and the\u00a0value of\u00a0the collateral is such that there is no reasonable expectation of recovering in full.\u00a0
The Group may write-off financial assets that are still subject to enforcement activity. The outstanding contractual amounts of\u00a0such assets written-off during 2024 is not material. The Group still seeks to recover amounts it is legally owed in full, but which have been partially written off due to no reasonable expectation of full recovery.
\nThe Group has the option to modify the terms of loans provided to customers due to commercial renegotiations, or for distressed loans, with a view to maximizing recovery. \u00a0Such restructuring activities include extended payment term and penalty interest arrangements. Restructuring policies and practices are based on indicators or criteria which, in the judgment of management, indicate that payment will most likely continue. These policies are kept under continuous review.
The risk of default of such assets after modification is assessed at the reporting date and compared with the risk under the\u00a0original terms at initial recognition, when the modification is not substantial and so does not result in derecognition of the\u00a0original asset. The Group monitors the subsequent performance of modified assets. Aegon may determine that the credit risk has significantly improved after restructuring, so that the assets are moved from Stage 3 or Stage 2 (Lifetime ECL) to Stage\u00a01 (12-month ECL) (see note 4.2.6\u00a0 Expected credit losses (a) for details of the Group ECL staging classification). This\u00a0is\u00a0only the case for assets that have performed in accordance with the new terms for three consecutive months or more. The gross carrying amount of such assets held on December 31 2024 was EUR 0 million (2023: EUR 0 million).
\nAegon regularly monitors industry sectors and individual debt securities for sources of changes in the ECL allowance. These\u00a0sources may include one or more of the following:\u00a0
Transfers between Stages 1, 2 and 3 due to financial instruments experiencing significant increases (or decreases) of\u00a0credit\u00a0risk or becoming credit-impaired in the period, and the consequent \u201cstep up\u201d (or \u201cstep down\u201d) between 12-month and\u00a0lifetime\u00a0ECL;\u00a0
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments de-recognized in the period;\u00a0
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of\u00a0inputs to models;\u00a0
Impacts on the measurement of ECL due to changes made to models and assumptions;\u00a0
Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;\u00a0
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and,
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during\u00a0the period.
In addition, for asset-backed securities, cash flow trends and underlying levels of collateral are monitored. Furthermore, quality ratings of investment portfolios are based on a composite of the main rating agencies (S&P, Moody\u2019s, and Fitch) and Aegon\u2019s internal rating of the counterparty. The following tables explain the changes in the loss allowance changes between the beginning and the end of the annual period due to these factors:
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Loss allowance on January 1 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n 4 | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n 1 | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n \n \n (5) \n | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n Impact on year-end ECL of exposures transferred between stages during the year | \n \n \n 2 | \n \n \n \n \n (7) \n | \n \n \n \n \n (50) \n | \n \n \n - | \n \n \n \n \n (54) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 18 | \n \n \n 3 | \n \n \n 35 | \n \n \n - | \n \n \n 56 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (38) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (42) \n | \n
| \n \n Change in models | \n \n \n \n \n (12) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (45) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (11) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (20) \n | \n
| \n \n Loss allowance on December 31 | \n \n \n \n \n (187) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Loss allowance on January 1 | \n \n \n \n \n (156) \n | \n \n \n \n \n (32) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (276) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n 2 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n 2 | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n \n \n (3) \n | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n 39 | \n \n \n - | \n \n \n - | \n
| \n \n Impact on year-end ECL of exposures transferred between stages during the year | \n \n \n 36 | \n \n \n \n \n (2) \n | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n \n \n (5) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 26 | \n \n \n 3 | \n \n \n 44 | \n \n \n - | \n \n \n 73 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (16) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Change in models | \n \n \n \n \n (5) \n | \n \n \n 6 | \n \n \n \n \n (14) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (13) \n | \n
| \n \n Net exchange differences | \n \n \n 5 | \n \n \n 1 | \n \n \n 2 | \n \n \n - | \n \n \n 9 | \n
| \n \n Loss allowance on December 31 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
The ECL allowance for debt securities measured at FVOCI of EUR 341 million (December 2023: EUR 237 million) does not reduce the carrying amount of these investments (which are measured at fair value) but gives rise to an equal and opposite gain in OCI.
Expected credit losses on loans increased by EUR (92) million to EUR (118) million as per December 2024 (2023:\u00a0(26)\u00a0million). The increase in expected credit losses was mainly driven by a mortgage loan in Aegon US and partly by the stage transfer of an office facing with occupancy and valuation challenges (2023:\u00a0EUR\u00a0(14) million).
The majority of the expected credit losses recognized are in Stage 2 EUR (75) million (2023: EUR (24) million).
Based on the tables above, the following is a reconciliation of the loss allowance movements with an impact on the income statement with the net impairment charge presented in the income statement. Other represents impairment charges on asset types which are not individually material.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Loans measured at amortized cost | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \n
| \n \n Debt securities measured at FVOCI | \n \n \n \n \n (140) \n | \n \n \n \n \n (44) \n | \n
| \n \n Other | \n \n \n \n \n (9) \n | \n \n \n \n \n (60) \n | \n
| \n \n Net impairment charge in P&L | \n \n \n \n \n (237) \n | \n \n \n \n \n (119) \n | \n
The following tables further explains changes in the gross carrying amount / market value \u00a0of the financial assets and their\u00a0significance to the changes in the loss allowance for the same portfolio as discussed above:
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 46,461 | \n \n \n 357 | \n \n \n 325 | \n \n \n 100 | \n \n \n 47,242 | \n
| \n \n Transfers: | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (200) \n | \n \n \n 200 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n \n \n (48) \n | \n \n \n 48 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n 7 | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 150 | \n \n \n \n \n (150) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n 2 | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (5,201) \n | \n \n \n \n \n (69) \n | \n \n \n \n \n (102) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (5,394) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 8,421 | \n \n \n 21 | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n 8,434 | \n
| \n \n Modification of contractual cash flows of financial assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Unrealized gains/losses through equity | \n \n \n \n \n (1,294) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (1,329) \n | \n
| \n \n Amortizations through income statement | \n \n \n 94 | \n \n \n 1 | \n \n \n 27 | \n \n \n 17 | \n \n \n 138 | \n
| \n \n Movements related to fair value hedges | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Net exchange differences | \n \n \n 3,154 | \n \n \n 22 | \n \n \n 19 | \n \n \n 6 | \n \n \n 3,201 | \n
| \n \n Other movements | \n \n \n \n \n (1) \n | \n \n \n 0 | \n \n \n \n \n (1) \n | \n \n \n \n \n (0) \n | \n \n \n \n \n (2) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (45) \n | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n \n \n (43) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 51,529 | \n \n \n 335 | \n \n \n 291 | \n \n \n 92 | \n \n \n 52,247 | \n
| \n \n Expected credit losses on December 31 | \n \n \n \n \n (187) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 50,666 | \n \n \n 413 | \n \n \n 403 | \n \n \n 125 | \n \n \n 51,607 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (80) \n | \n \n \n 80 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (45) \n | \n \n \n - | \n \n \n 45 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n 23 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 76 | \n \n \n \n \n (76) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n 59 | \n \n \n - | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (7,836) \n | \n \n \n \n \n (83) \n | \n \n \n \n \n (111) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (8,057) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 3,672 | \n \n \n 37 | \n \n \n 22 | \n \n \n - | \n \n \n 3,731 | \n
| \n \n Modification of contractual cash flows of financial assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Unrealized gains/losses through equity | \n \n \n 1,488 | \n \n \n 16 | \n \n \n 1 | \n \n \n \n \n (10) \n | \n \n \n 1,495 | \n
| \n \n Amortizations through income statement | \n \n \n 113 | \n \n \n - | \n \n \n 19 | \n \n \n 17 | \n \n \n 148 | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,637) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (1,666) \n | \n
| \n \n Other movements | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (9) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (6) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 46,461 | \n \n \n 357 | \n \n \n 325 | \n \n \n 100 | \n \n \n 47,242 | \n
| \n \n Expected credit losses on December 31 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (237) \n | \n
The total amount of undiscounted ECL at initial recognition for purchased or originated credit-impaired financial assets recognized during the period was EUR 4 million (2023: EUR 2 million).
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,182 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (162) \n | \n \n \n 162 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 75 | \n \n \n \n \n (75) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (633) \n | \n \n \n \n \n (69) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (702) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 483 | \n \n \n 76 | \n \n \n - | \n \n \n - | \n \n \n 559 | \n
| \n \n Realized gains and losses through income statement | \n \n \n 3 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Net exchange differences | \n \n \n 667 | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 674 | \n
| \n \n Other movements | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n
| \n \n (-) Expected credit losses on December 31 | \n \n \n \n \n (38) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n
| \n \n Net carrying amount on December 31 | \n \n \n 10,536 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 10,416 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 10,418 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (39) \n | \n \n \n 39 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (566) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (571) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 691 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 691 | \n
| \n \n Net exchange differences | \n \n \n \n \n (354) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (355) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,182 | \n
| \n \n (-) Expected credit losses on December 31 | \n \n \n \n \n (24) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Net carrying amount on December 31 | \n \n \n 10,123 | \n \n \n 33 | \n \n \n - | \n \n \n - | \n \n \n 10,156 | \n
ECL are sensitive to judgments and assumptions made regarding the formulation of forward-looking scenarios and how such scenarios are incorporated into the calculations. Management performs a sensitivity analysis on the ECL recognized on material classes of its assets. As ECL is not material at the end of 2024 and 2023, sensitivity on ECL is being assessed to be not material for 2024 and 2023 either.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f8077m1470p": { "value": "\nThe following table contains an analysis of Aegon\u2019s maximum credit risk exposure from financial assets.
Please\u00a0see\u00a0note\u00a039 Commitments and contingencies\u00a0and 40 Transfers of financial assets for further information on capital commitments and contingencies and on collateral given, which may expose the Group to credit risk.
| \n \n 2024 | \n \n \n Maximum exposure to credit risk | \n \n \n Cash | \n \n \n Securities | \n \n \n Letters of credit / guaran- | \n \n \n Real estate property | \n \n \n Master netting agree- | \n \n \n Other | \n \n \n Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 60,890 | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n - | \n \n \n 60,829 | \n
| \n \n Money market and other short-term investments | \n \n \n 6,071 | \n \n \n - | \n \n \n 324 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 324 | \n \n \n 20 | \n \n \n 5,767 | \n
| \n \n Loans | \n \n \n 10,798 | \n \n \n 51 | \n \n \n - | \n \n \n 20 | \n \n \n 23,694 | \n \n \n - | \n \n \n - | \n \n \n 23,766 | \n \n \n 12,982 | \n \n \n 14 | \n
| \n \n Unconsolidated investment funds | \n \n \n 192,775 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 192,775 | \n
| \n \n Deposits with financial institutes | \n \n \n 2,063 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,063 | \n
| \n \n Other investments | \n \n \n 5,207 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,207 | \n
| \n \n Derivative assets | \n \n \n 771 | \n \n \n 220 | \n \n \n 713 | \n \n \n - | \n \n \n - | \n \n \n 171 | \n \n \n - | \n \n \n 1,104 | \n \n \n 461 | \n \n \n 128 | \n
| \n \n Reinsurance assets | \n \n \n 16,021 | \n \n \n - | \n \n \n 14,141 | \n \n \n 732 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 14,872 | \n \n \n - | \n \n \n 1,149 | \n
| \n \n On December 31 | \n \n \n 294,597 | \n \n \n 271 | \n \n \n 15,177 | \n \n \n 813 | \n \n \n 23,694 | \n \n \n 171 | \n \n \n - | \n \n \n 40,127 | \n \n \n 13,462 | \n \n \n 267,932 | \n
| \n \n 2023 | \n \n \n Maximum exposure to credit risk | \n \n \n Cash | \n \n \n Securities | \n \n \n Letters of credit / guaran- | \n \n \n Real estate property | \n \n \n Master netting agree- | \n \n \n Other | \n \n \n Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 55,811 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n 55,718 | \n
| \n \n Money market and other short-term investments | \n \n \n 8,695 | \n \n \n - | \n \n \n 442 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 442 | \n \n \n 24 | \n \n \n 8,277 | \n
| \n \n Loans | \n \n \n 10,183 | \n \n \n 31 | \n \n \n - | \n \n \n 20 | \n \n \n 23,711 | \n \n \n - | \n \n \n - | \n \n \n 23,762 | \n \n \n 13,579 | \n \n \n - | \n
| \n \n Unconsolidated investment funds | \n \n \n 167,411 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 167,411 | \n
| \n \n Deposits with financial institutes | \n \n \n 2,289 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,289 | \n
| \n \n Other investments | \n \n \n 5,040 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,040 | \n
| \n \n Derivative assets | \n \n \n 1,429 | \n \n \n 832 | \n \n \n 669 | \n \n \n - | \n \n \n - | \n \n \n 373 | \n \n \n - | \n \n \n 1,875 | \n \n \n 550 | \n \n \n 104 | \n
| \n \n Reinsurance assets | \n \n \n 16,608 | \n \n \n - | \n \n \n 13,416 | \n \n \n 82 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 13,498 | \n \n \n - | \n \n \n 3,110 | \n
| \n \n On December 31 | \n \n \n 267,465 | \n \n \n 864 | \n \n \n 14,528 | \n \n \n 194 | \n \n \n 23,711 | \n \n \n 373 | \n \n \n - | \n \n \n 39,669 | \n \n \n 14,153 | \n \n \n 241,949 | \n
Several bonds in Aegon's Americas' portfolio are guaranteed by monoline insurance companies. This is shown in the table above in\u00a0the column Letters of credit / guarantees.
\nThe collateral reported for the money market and short-term investments are related to tri-party repurchase agreements (repos). Within tri-party repos, Aegon invests under short-term reverse repurchase agreements and the counterparty posts collateral to a third party custodian. The collateral posted is typically high-quality, short-term securities and is only accessible for or available to Aegon in the event the counterparty defaults.
The following table contains an analysis of Aegon\u2019s credit risk exposure for debt instruments for which an ECL allowance is\u00a0recognized. See note 4.2.6 Expected credit loss for a more detailed description of ECL measurement. All asset categories not presented here are\u00a0determined to have non-material credit risk or to be of short-term nature (cash and cash equivalents, other receivables). The\u00a0gross carrying amount of financial assets below also represents Aegon\u2019s maximum exposure to credit risk on these assets.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n\n \n ECL staging | \n \n | \n\n | \n||||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Financial assets | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n AAA | \n \n \n 3,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,295 | \n \n \n 2,961 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,961 | \n
| \n \n AA | \n \n \n 9,100 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 9,101 | \n \n \n 9,217 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 9,219 | \n
| \n \n A | \n \n \n 19,443 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19,443 | \n \n \n 18,410 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 18,411 | \n
| \n \n BBB | \n \n \n 20,724 | \n \n \n 7 | \n \n \n - | \n \n \n 1 | \n \n \n 20,732 | \n \n \n 17,534 | \n \n \n 11 | \n \n \n - | \n \n \n 1 | \n \n \n 17,547 | \n
| \n \n BB | \n \n \n 949 | \n \n \n 157 | \n \n \n - | \n \n \n - | \n \n \n 1,106 | \n \n \n 899 | \n \n \n 136 | \n \n \n - | \n \n \n - | \n \n \n 1,035 | \n
| \n \n B | \n \n \n 361 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 456 | \n \n \n 431 | \n \n \n 120 | \n \n \n 3 | \n \n \n - | \n \n \n 554 | \n
| \n \n CCC and lower | \n \n \n 85 | \n \n \n 79 | \n \n \n 289 | \n \n \n 91 | \n \n \n 544 | \n \n \n 120 | \n \n \n 91 | \n \n \n 319 | \n \n \n 99 | \n \n \n 629 | \n
| \n \n Net carrying amount | \n \n \n 53,957 | \n \n \n 337 | \n \n \n 291 | \n \n \n 92 | \n \n \n 54,677 | \n \n \n 49,571 | \n \n \n 358 | \n \n \n 325 | \n \n \n 100 | \n \n \n 50,354 | \n
| \n \n Expected credit loss | \n \n \n \n \n (187) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
The real estate collateral for mortgages includes both residential and commercial properties. The collateral for commercial mortgage loans in Aegon Americas is measured at fair value. At a minimum on an annual basis, a fair value is estimated for each individual real estate property that has been pledged as collateral. When a loan is originally provided, an external appraisal is obtained to estimate the value of the property. In subsequent years, the value is typically estimated internally using various professionally accepted valuation methodologies. Internal appraisals are performed by qualified, professionally accredited personnel. International valuation standards are used, and the most significant assumptions made during the valuation of real estate are the current cost of reproducing or replacing the property, the value that the property's net earning power will support, and the value indicated by recent sales of comparable properties. Valuations are primarily supported by market evidence.\u00a0
Cash collateral for mortgage loans includes the savings that have been received to redeem the underlying mortgage loans at\u00a0redemption date. These savings are part of the credit side of the statement of financial position but reduce the credit risk for\u00a0the mortgage loan as a whole.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n\n \n ECL staging | \n \n | \n\n | \n||||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans at | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Internal grade 1 | \n \n \n 977 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 1,013 | \n \n \n 947 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 947 | \n
| \n \n Internal grade 2 | \n \n \n 4,410 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n \n \n 3,929 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 3,930 | \n
| \n \n Internal grade 3 | \n \n \n 4,539 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 4,546 | \n \n \n 4,460 | \n \n \n 24 | \n \n \n - | \n \n \n - | \n \n \n 4,485 | \n
| \n \n Internal grade 4 | \n \n \n 644 | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 654 | \n \n \n 778 | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 785 | \n
| \n \n Internal grade 5 | \n \n \n 4 | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 81 | \n \n \n 33 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 35 | \n
| \n \n Internal grade 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Internal grade 7 or lower | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Gross carrying amount | \n \n \n 10,573 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,183 | \n
| \n \n Expected credit loss | \n \n \n \n \n (38) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n \n \n (24) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Total | \n \n \n 10,535 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n \n \n 10,123 | \n \n \n 33 | \n \n \n - | \n \n \n - | \n \n \n 10,156 | \n
As significant portion of instruments have been designated as FVPL. On December 31, 2024, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 1,488 million (December 2023: EUR\u00a01,736 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following changes in fair value have been recognized for these investments:
| \n | \n\n \n 2024 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \n
| \n | \n\n \n 2023 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 46 | \n \n \n \n \n (1) \n | \n \n \n 45 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n 20 | \n \n \n - | \n \n \n 20 | \n
The change in fair value attributable to changes in credit risk is determined as the total amount of the change in fair value that is not attributable to changes in the observable benchmark interest rate or in other market rates. This approach provides a\u00a0reasonable approximation of changes attributable to credit risk because fixed income securities valuation is mainly driven by two factors \u2013 interest rates and credit spreads, and the fair value change due to credit risk can therefore be estimated by removing impacts from non-credit related factors.
\nThe master netting agreements column in the table relates to derivative liability positions that are used in Aegon's credit risk management. The offset in the master netting agreements column includes balances where there is a legally enforceable right of offset, but no intention to settle these balances on a net basis under normal circumstances. As a result, there is a net exposure for credit risk management purposes. However, as there is no intention to settle these balances on a net basis, they\u00a0do not qualify for net presentation for accounting purposes.
\nThe collateral related to the reinsurance assets includes assets in trust that are held by the reinsurer for the benefit of Aegon. The assets in trust can be accessed to pay policyholder benefits in the event the reinsurers fail to perform under the terms of their contract. Further information on the related reinsurance transactions is included in note 29 Insurance contracts.
\nAegon employs a range of policies and practices to mitigate credit risk and the most common of these is accepting collateral\u00a0for funds advanced. The Group has internal policies on the acceptability of specific classes of collateral or credit\u00a0risk mitigation.\u00a0
\nOn December 31, 2024, the Group held no collateral that was obtained during the year (EUR 0 in 2023) by taking\u00a0possession of collateral held as security against receivables. The Group\u2019s policy is to pursue the timely realization of\u00a0the collateral in an orderly manner. Aegon does not generally use the non-cash collateral for its own operations.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Cash at bank and in hand | \n \n \n 1,478 | \n \n \n 1,614 | \n \n \n 1,827 | \n
| \n \n Short-term deposits | \n \n \n 152 | \n \n \n 340 | \n \n \n 345 | \n
| \n \n Money market investments | \n \n \n 1,838 | \n \n \n 2,120 | \n \n \n 1,230 | \n
| \n \n On December 31 | \n \n \n 3,469 | \n \n \n 4,074 | \n \n \n 3,402 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Cash collateral related to securities lending, repurchase agreements and margins on derivatives transactions | \n \n \n 2,240 | \n \n \n 3,416 | \n \n \n 5,072 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Income from security lending programs | \n \n \n 4 | \n \n \n 7 | \n \n \n 7 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Weighted effective interest rate on short-term deposits | \n \n \n 3.17% | \n \n \n 3.90% | \n \n \n 1.70% | \n
| \n \n \n \n Average maturity on short-term deposits (in days) \n | \n \n \n 5 | \n \n \n 11 | \n \n \n 17 | \n
The carrying amounts disclosed reasonably approximate the fair values at year-end.
For cash collateral received related to securities lending, repurchase agreements, and margins on derivatives transactions, a\u00a0corresponding liability to repay the cash is recognized in other liabilities (see note 35 Other liabilities). Also, see note 40 Transfers of financial assets Transfer of financial assets for details on collateral received and paid. Investment of cash collateral received is restricted through limitations on credit worthiness, duration, approved investment categories, and borrower limits. Short-term collateral relates to cash collateral received included in cash and cash equivalents and the remainder is included in other asset classes as that collateral is typically reinvested. Aegon earns a share of the spread between the collateral earnings and the rebate paid to the borrower of the securities which is reflected in Income from securities lending programs.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Loans to associates | \n \n \n - | \n \n \n 8 | \n
| \n \n Receivables from policyholders | \n \n \n 118 | \n \n \n 137 | \n
| \n \n Receivables from brokers and agents | \n \n \n 270 | \n \n \n 239 | \n
| \n \n Cash outstanding from assets sold | \n \n \n 176 | \n \n \n 133 | \n
| \n \n Trade receivables | \n \n \n 654 | \n \n \n 178 | \n
| \n \n Cash collateral | \n \n \n 515 | \n \n \n 516 | \n
| \n \n Income tax receivable | \n \n \n 286 | \n \n \n 172 | \n
| \n \n Other | \n \n \n 1,828 | \n \n \n 2,194 | \n
| \n \n Expected credit losses | \n \n \n \n \n (18) \n | \n \n \n \n \n (10) \n | \n
| \n \n On December 31 | \n \n \n 3,830 | \n \n \n 3,567 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 3,736 | \n \n \n 3,564 | \n
| \n \n Non-current | \n \n \n 94 | \n \n \n 2 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Payables due to policyholders | \n \n \n 815 | \n \n \n 1,632 | \n
| \n \n Payables due to brokers and agents | \n \n \n 505 | \n \n \n 482 | \n
| \n \n Social security and taxes payable | \n \n \n 57 | \n \n \n 59 | \n
| \n \n Income tax payable | \n \n \n 4 | \n \n \n 1 | \n
| \n \n Investment creditors | \n \n \n 1,175 | \n \n \n 995 | \n
| \n \n Cash collateral on derivative transactions | \n \n \n 250 | \n \n \n 964 | \n
| \n \n Cash collateral on securities lent | \n \n \n 1,898 | \n \n \n 2,357 | \n
| \n \n Cash collateral - other | \n \n \n 92 | \n \n \n 68 | \n
| \n \n Repurchase agreements | \n \n \n - | \n \n \n 28 | \n
| \n \n Lease liabilities | \n \n \n 216 | \n \n \n 205 | \n
| \n \n Other creditors | \n \n \n 2,112 | \n \n \n 1,599 | \n
| \n \n On December 31 | \n \n \n 7,124 | \n \n \n 8,390 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 6,930 | \n \n \n 8,210 | \n
| \n \n Non-current | \n \n \n 194 | \n \n \n 180 | \n
The carrying amounts disclosed are reasonable approximations of the fair values at yearend, given the predominantly current nature of the other liabilities.
\nThe following table reflects the carrying amount of financial assets that have been transferred to another party in such a way that part or all the transferred financial assets do not qualify for derecognition. Furthermore, it reflects the carrying amounts of the associated liabilities.
| \n | \n\n \n 2024 | \n |||||||
| \n | \n\n \n FVOCI financial assets | \n \n \n FVPL financial assets | \n ||||||
| \n | \n\n \n Shares | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Other | \n \n \n Debt securities | \n \n \n Investments where the PH bears risk | \n \n \n Money market and other short-term investments | \n \n \n Other | \n
| \n \n Carrying amount of transferred assets | \n \n \n - | \n \n \n 1,628 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 39 | \n \n \n - | \n \n \n - | \n
| \n \n Carrying amount of associated liabilities | \n \n \n - | \n \n \n 1,897 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 2023 | \n |||||||
| \n | \n\n \n FVOCI financial assets | \n \n \n FVPL financial assets | \n ||||||
| \n | \n\n \n Shares | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Other | \n \n \n Debt securities | \n \n \n Investments where the PH bears risk | \n \n \n Money market and other short-term investments | \n \n \n Other | \n
| \n \n Carrying amount of transferred assets | \n \n \n - | \n \n \n 2,068 | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n 15 | \n \n \n - | \n \n \n - | \n
| \n \n Carrying amount of associated liabilities | \n \n \n - | \n \n \n 2,382 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n - | \n
In transactions in which the Group neither retains nor transfers substantially all the risks and rewards of ownership of a\u00a0financial asset and it retains control over the asset, the Group continues to recognize the asset to the extent of its continuing involvement, determined by the extent to which it is exposed to changes in the value of the transferred asset.
\nThe table above includes financial assets that have been transferred to another party under securities lending and repurchase activities.
Aegon retains substantially all risks and rewards of those transferred assets, this includes credit risk, settlement risk, country\u00a0risk and market risk. The assets are transferred in return for cash collateral or other financial assets. Non-cash collateral is not recognized in the statement of financial position. Cash collateral is recorded on the statement of financial position as an asset and an offsetting liability is established for the same amount as Aegon is obligated to return this amount upon termination of the lending arrangement. Cash collateral is usually invested in pre-designated high quality investments. The\u00a0sum of cash and non-cash collateral is typically greater than the market value of the related securities loaned. See note\u00a040.3 Assets accepted and note\u00a040.4 Assets pledged for an analysis of collateral accepted and pledged in relation to securities lending and repurchase agreements.
\nAegon receives collateral related to securities lending, reverse repurchase activities, and derivative transactions. Non-cash collateral is not recognized in the statement of financial position. To the extent that cash is paid for reverse repurchase agreements, a receivable is recognized for the corresponding amount.\u00a0
The following tables present the fair value of the assets received in relation to securities lending and reverse repurchase activities:
| \n \n Securities lending | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Carrying amount of transferred financial assets | \n \n \n 1,668 | \n \n \n 2,063 | \n
| \n \n Fair value of cash collateral received | \n \n \n 1,898 | \n \n \n 2,357 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 41 | \n \n \n 16 | \n
| \n \n Net exposure | \n \n \n \n \n (271) \n | \n \n \n \n \n (309) \n | \n
| \n \n Reverse repurchase agreements | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Cash paid for reverse repurchase agreements | \n \n \n 324 | \n \n \n 442 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 343 | \n \n \n 467 | \n
| \n \n Net exposure | \n \n \n \n \n (20) \n | \n \n \n \n \n (24) \n | \n
The above items are conducted under terms that are usual and customary to standard securities lending activities, as well as requirements determined by exchanges where the bank acts as an intermediary.
For 2023 and 2024 there is no Non-cash collateral that can be sold or repledged in the absence of default and no Non-cash collateral has been sold or transferred.\u00a0
In addition, Aegon can receive collateral related to derivative transactions that it enters into. The credit support agreement will normally dictate the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of over-the-counter derivative trades, comprised mostly of interest rate swaps, currency swaps, and credit swaps. See the credit risk section in note\u00a04 Financial risks for details on collateral received for derivative transactions.
\nAegon pledges assets that are on its statement of financial position in securities borrowing transactions, in repurchase transactions, in derivative transactions and against long-term borrowings. In addition, in order to trade derivatives on the various exchanges, Aegon posts margin as collateral.
These transactions are conducted under terms that are usual and customary to standard long-term borrowing, derivative, and\u00a0securities borrowing activities, as well as requirements determined by exchanges where the bank acts as intermediary.
Non-cash financial assets that are borrowed or purchased under agreement to resell are not recognized in the statement of financial position.
To the extent that cash collateral is paid, a receivable is recognized for the corresponding amount. If other non-cash financial assets are given as collateral, these are not derecognized.
The following tables present the carrying amount of collateral pledged and the corresponding amounts.
| \n | \n\n | \n\n \n 2024 | \n \n | \n\n \n 2023 | \n
| \n \n Assets pledged for general account and contingent liabilities | \n \n \n Where Aegon bears the risk | \n \n \n Where the PH bears the risk | \n \n \n Where Aegon bears the risk | \n \n \n Where the PH bears the risk | \n
| \n \n Contingent liabilities | \n \n \n 2,143 | \n \n \n - | \n \n \n 2,290 | \n \n \n - | \n
| \n \n Collateral pledged | \n \n \n 4,282 | \n \n \n - | \n \n \n 4,171 | \n \n \n - | \n
| \n \n Net exposure | \n \n \n \n \n (2,139) \n | \n \n \n - | \n \n \n \n \n (1,881) \n | \n \n \n - | \n
For 2023 and 2024, there is no Non-cash collateral that can be sold or repledged by the counterparty.
| \n \n Assets pledged for repurchase agreements | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Cash received on repurchase agreements | \n \n \n - | \n \n \n 29 | \n
| \n \n \n \n Collateral pledged (transferred financial assets) \n | \n \n \n - | \n \n \n 25 | \n
| \n \n Net exposure | \n \n \n - | \n \n \n 3 | \n
For 2024, there is no Cash collateral\u00a0that can be sold or repledged by the counterparty (2023: EUR 3 million).
In order to trade derivatives on the various exchanges, Aegon posts margin as collateral. The amount of collateral pledged for derivative transactions was EUR 2.8 billion (2023: EUR 2.3 billion).
\nThe following table only includes financial positions for which there is a recognized corresponding position that could be offset under a legally enforceable master netting arrangement or similar agreement. Aegon also enters into collateralized (reverse) repo or security lending and borrowing transactions, for which the collateral is not recognized on the balance sheet. For further information on the financial positions resulting from such transactions please see note 40 Transfer of financial assets. The table provides details relating to the effect, or potential effect, of netting arrangements, including rights to set-off, associated with the entity's recognized financial assets and recognized financial liabilities.
| \n | \n\n \n Gross amounts of recognized financial assets | \n \n \n Gross amounts of recognized financial liabilities set off in the statement of financial position | \n \n \n Net amounts of financial assets presented in the statement of financial position | \n \n \n Related amounts not set off in the statements of financial position | \n \n \n Net amount | \n |
| \n \n Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements | \n \n \n Financial instruments | \n \n \n \n \n Cash collateral received (excluding surplus collateral) \n | \n ||||
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 723 | \n \n \n 5 | \n \n \n 718 | \n \n \n 628 | \n \n \n 81 | \n \n \n 8 | \n
| \n \n On December 31 | \n \n \n 723 | \n \n \n 5 | \n \n \n 718 | \n \n \n 628 | \n \n \n 81 | \n \n \n 8 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 1,341 | \n \n \n - | \n \n \n 1,341 | \n \n \n 631 | \n \n \n 707 | \n \n \n 2 | \n
| \n \n On December 31 | \n \n \n 1,341 | \n \n \n - | \n \n \n 1,341 | \n \n \n 631 | \n \n \n 707 | \n \n \n 2 | \n
| \n | \n\n \n Gross amounts of recognized financial liabilities | \n \n \n Gross amounts of recognized financial assets set off in the statement of financial position | \n \n \n Net amounts of financial liabilities presented in the statement of financial position | \n \n \n Related amounts not set off in the statements of financial position | \n \n \n Net amount | \n |
| \n \n Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements | \n \n \n Financial instruments | \n \n \n \n \n Cash collateral pledged (excluding surplus collateral) \n | \n ||||
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 2,302 | \n \n \n - | \n \n \n 2,302 | \n \n \n 1,537 | \n \n \n 710 | \n \n \n 55 | \n
| \n \n On December 31 | \n \n \n 2,302 | \n \n \n - | \n \n \n 2,302 | \n \n \n 1,537 | \n \n \n 710 | \n \n \n 55 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 2,361 | \n \n \n - | \n \n \n 2,361 | \n \n \n 1,245 | \n \n \n 1,026 | \n \n \n 90 | \n
| \n \n On December 31 | \n \n \n 2,361 | \n \n \n - | \n \n \n 2,361 | \n \n \n 1,245 | \n \n \n 1,026 | \n \n \n 90 | \n
Financial assets and liabilities are offset in the statement of financial position when the Group has a legally enforceable right to offset and has the intention to settle the asset and liability on a net basis, or to realize the asset and settle the liability simultaneously. As shown in the second column there are EUR 5 millions of Derivatives offset in 2024 and no financial assets and liabilities offset in 2023.
The line Derivatives includes both derivatives for general account and derivatives where the policyholder bears the risk.
Aegon mitigates credit risk in derivative contracts by entering into collateral agreements, where practical, and in ISDA master netting agreements for each of Aegon\u2019s legal entities to facilitate Aegon\u2019s right to offset credit risk exposure. The credit support agreement will normally dictate the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of over-the-counter derivative trades, comprised mostly of interest rate swaps, currency swaps and credit swaps. These transactions are conducted under terms that are usual and customary to standard long-term borrowing, derivatives, securities lending and securities borrowing activities, as well as requirements determined by exchanges where the bank acts as an intermediary.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f8115m4659p": { "value": "\nAs significant portion of instruments have been designated as FVPL. On December 31, 2024, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 1,488 million (December 2023: EUR\u00a01,736 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following changes in fair value have been recognized for these investments:
| \n | \n\n \n 2024 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \n
| \n | \n\n \n 2023 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 46 | \n \n \n \n \n (1) \n | \n \n \n 45 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n 20 | \n \n \n - | \n \n \n 20 | \n
The change in fair value attributable to changes in credit risk is determined as the total amount of the change in fair value that is not attributable to changes in the observable benchmark interest rate or in other market rates. This approach provides a\u00a0reasonable approximation of changes attributable to credit risk because fixed income securities valuation is mainly driven by two factors \u2013 interest rates and credit spreads, and the fair value change due to credit risk can therefore be estimated by removing impacts from non-credit related factors.
\n| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 996 | \n \n \n \n \n (4) \n | \n \n \n 639 | \n \n \n 1,632 | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (164) \n | \n \n \n \n \n (1,145) \n | \n \n \n \n \n (107) \n | \n \n \n \n \n (1,416) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n 10,819 | \n \n \n - | \n \n \n 1,215 | \n \n \n 12,034 | \n
| \n \n Other | \n \n \n - | \n \n \n \n \n (90) \n | \n \n \n - | \n \n \n \n \n (90) \n | \n
| \n | \n\n \n 11,651 | \n \n \n \n \n (1,240) \n | \n \n \n 1,748 | \n \n \n 12,159 | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (167) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (311) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (1,297) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,297) \n | \n
| \n | \n\n \n \n \n (1,464) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (1,608) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n | \n\n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Investments measured at fair value through other comprehensive income (\"FVOCI\") \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n 5 | \n \n \n - | \n \n \n 3 | \n \n \n 8 | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n | \n\n \n 5 | \n \n \n 1 | \n \n \n 3 | \n \n \n 9 | \n
| \n \n On December 31 | \n \n \n 10,192 | \n \n \n \n \n (1,253) \n | \n \n \n 1,624 | \n \n \n 10,563 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 11,655 | \n \n \n \n \n (127) \n | \n \n \n 1,751 | \n \n \n 13,280 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (1,464) \n | \n \n \n \n \n (96) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (1,686) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n \n \n (1,030) \n | \n \n \n - | \n \n \n \n \n (1,030) \n | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 800 | \n \n \n 13 | \n \n \n 413 | \n \n \n 1,225 | \n
| \n \n Debt securities and money market investments | \n \n \n 55 | \n \n \n 1,366 | \n \n \n 36 | \n \n \n 1,457 | \n
| \n \n Unconsolidated investment funds | \n \n \n 11,800 | \n \n \n 11 | \n \n \n 939 | \n \n \n 12,750 | \n
| \n \n Other | \n \n \n - | \n \n \n 15 | \n \n \n - | \n \n \n 15 | \n
| \n | \n\n \n 12,655 | \n \n \n 1,404 | \n \n \n 1,388 | \n \n \n 15,447 | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (95) \n | \n \n \n 29 | \n \n \n \n \n (48) \n | \n \n \n \n \n (114) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (1,085) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,085) \n | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n
| \n | \n\n \n \n \n (1,181) \n | \n \n \n 31 | \n \n \n \n \n (48) \n | \n \n \n \n \n (1,197) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Loans | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n | \n\n \n - | \n \n \n \n \n (16) \n | \n \n \n - | \n \n \n \n \n (16) \n | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n \n \n (28) \n | \n \n \n - | \n \n \n \n \n (18) \n | \n \n \n \n \n (46) \n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n | \n\n \n \n \n (28) \n | \n \n \n 2 | \n \n \n \n \n (18) \n | \n \n \n \n \n (44) \n | \n
| \n \n On December 31 | \n \n \n 11,446 | \n \n \n 1,421 | \n \n \n 1,322 | \n \n \n 14,190 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 12,627 | \n \n \n \n \n (562) \n | \n \n \n 1,370 | \n \n \n 13,435 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (1,181) \n | \n \n \n 95 | \n \n \n \n \n (48) \n | \n \n \n \n \n (1,134) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n 1,888 | \n \n \n - | \n \n \n 1,888 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n \n \n (1,566) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (950) \n | \n \n \n \n \n (2,548) \n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (1,153) \n | \n \n \n \n \n (14,958) \n | \n \n \n \n \n (737) \n | \n \n \n \n \n (16,847) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n \n \n (18,538) \n | \n \n \n \n \n (38) \n | \n \n \n \n \n (1,785) \n | \n \n \n \n \n (20,360) \n | \n
| \n \n Other | \n \n \n - | \n \n \n 329 | \n \n \n - | \n \n \n 329 | \n
| \n | \n\n \n \n \n (21,256) \n | \n \n \n \n \n (14,699) \n | \n \n \n \n \n (3,471) \n | \n \n \n \n \n (39,427) \n | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (333) \n | \n \n \n \n \n (361) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (1,080) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (3,093) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,093) \n | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n \n \n (3) \n | \n
| \n | \n\n \n \n \n (3,427) \n | \n \n \n \n \n (364) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (4,176) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Loans | \n \n \n - | \n \n \n 36 | \n \n \n - | \n \n \n 36 | \n
| \n | \n\n \n - | \n \n \n 35 | \n \n \n - | \n \n \n 35 | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 36 | \n \n \n - | \n \n \n 36 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n \n \n (33) \n | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n \n \n (56) \n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n \n \n \n Net foreign currency gains and (losses) \n | \n \n \n - | \n \n \n 37 | \n \n \n - | \n \n \n 37 | \n
| \n | \n\n \n \n \n (33) \n | \n \n \n 38 | \n \n \n \n \n (23) \n | \n \n \n \n \n (18) \n | \n
| \n \n On December 31 | \n \n \n \n \n (24,716) \n | \n \n \n \n \n (14,990) \n | \n \n \n \n \n (3,880) \n | \n \n \n \n \n (43,586) \n | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n \n \n (21,289) \n | \n \n \n \n \n (714) \n | \n \n \n \n \n (3,495) \n | \n \n \n \n \n (25,498) \n | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (3,427) \n | \n \n \n \n \n (194) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (4,006) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n \n \n (14,081) \n | \n \n \n - | \n \n \n \n \n (14,081) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 368 | \n \n \n 195 | \n \n \n \n \n (281) \n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (55) \n | \n \n \n 46 | \n \n \n \n \n (222) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n 7,367 | \n \n \n 6,805 | \n \n \n \n \n (9,961) \n | \n
| \n | \n\n \n 7,680 | \n \n \n 7,047 | \n \n \n \n \n (10,463) \n | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (38) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (162) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n 3 | \n \n \n 5 | \n \n \n 29 | \n
| \n \n Change in fair value of hedges on guarantees in investment contracts without DPF | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n 2 | \n \n \n 3 | \n \n \n 4 | \n
| \n | \n\n \n \n \n (35) \n | \n \n \n - | \n \n \n \n \n (129) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n \n \n \n \n (58) \n | \n
| \n | \n\n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n \n \n \n \n (58) \n | \n
| \n \n Comprised of: | \n \n | \n\n | \n\n | \n
| \n \n \n \n Investments measured at fair value through other comprehensive income (\"FVOCI\") \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n \n \n \n \n (58) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n 1 | \n \n \n \n \n (6) \n | \n \n \n \n \n (5) \n | \n
| \n \n \n \n Net foreign currency gains and (losses) \n | \n \n \n \n \n (2) \n | \n \n \n 2 | \n \n \n \n \n (1) \n | \n
| \n | \n\n \n - | \n \n \n \n \n (4) \n | \n \n \n \n \n (6) \n | \n
| \n \n On December 31 | \n \n \n 7,634 | \n \n \n 6,929 | \n \n \n \n \n (10,656) \n | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 7,666 | \n \n \n 7,043 | \n \n \n \n \n (10,466) \n | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n 14 | \n \n \n 3 | \n \n \n 3 | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n \n \n (47) \n | \n \n \n \n \n (117) \n | \n \n \n \n \n (192) \n | \n
As significant portion of instruments have been designated as FVPL. On December 31, 2024, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 1,488 million (December 2023: EUR\u00a01,736 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following changes in fair value have been recognized for these investments:
| \n | \n\n \n 2024 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \n
| \n | \n\n \n 2023 | \n ||
| \n \n Financial assets designated at FVPL | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Total | \n
| \n \n Change in fair value attributable to changes in credit risk during the year | \n \n \n 46 | \n \n \n \n \n (1) \n | \n \n \n 45 | \n
| \n \n Cumulative change in fair value attributable to changes in credit risk held on December 31 | \n \n \n 20 | \n \n \n - | \n \n \n 20 | \n
The change in fair value attributable to changes in credit risk is determined as the total amount of the change in fair value that is not attributable to changes in the observable benchmark interest rate or in other market rates. This approach provides a\u00a0reasonable approximation of changes attributable to credit risk because fixed income securities valuation is mainly driven by two factors \u2013 interest rates and credit spreads, and the fair value change due to credit risk can therefore be estimated by removing impacts from non-credit related factors.
\n| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Derivatives to which hedge accounting was not applied | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 197 | \n \n \n 11 | \n \n \n 132 | \n \n \n 340 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 301 | \n \n \n - | \n \n \n 301 | \n
| \n \n On December 31 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 231 | \n \n \n 54 | \n \n \n 137 | \n \n \n 422 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 315 | \n \n \n - | \n \n \n 315 | \n
| \n \n On December 31 | \n \n \n 231 | \n \n \n 369 | \n \n \n 137 | \n \n \n 737 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 182 | \n \n \n 48 | \n \n \n 128 | \n \n \n 358 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 217 | \n \n \n - | \n \n \n 217 | \n
| \n \n On December 31 | \n \n \n 182 | \n \n \n 265 | \n \n \n 128 | \n \n \n 575 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 996 | \n \n \n \n \n (4) \n | \n \n \n 639 | \n \n \n 1,632 | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (164) \n | \n \n \n \n \n (1,145) \n | \n \n \n \n \n (107) \n | \n \n \n \n \n (1,416) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n 10,819 | \n \n \n - | \n \n \n 1,215 | \n \n \n 12,034 | \n
| \n \n Other | \n \n \n - | \n \n \n \n \n (90) \n | \n \n \n - | \n \n \n \n \n (90) \n | \n
| \n | \n\n \n 11,651 | \n \n \n \n \n (1,240) \n | \n \n \n 1,748 | \n \n \n 12,159 | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (167) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (311) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (1,297) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,297) \n | \n
| \n | \n\n \n \n \n (1,464) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (1,608) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n | \n\n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Investments measured at fair value through other comprehensive income (\"FVOCI\") \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n 5 | \n \n \n - | \n \n \n 3 | \n \n \n 8 | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n | \n\n \n 5 | \n \n \n 1 | \n \n \n 3 | \n \n \n 9 | \n
| \n \n On December 31 | \n \n \n 10,192 | \n \n \n \n \n (1,253) \n | \n \n \n 1,624 | \n \n \n 10,563 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 11,655 | \n \n \n \n \n (127) \n | \n \n \n 1,751 | \n \n \n 13,280 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (1,464) \n | \n \n \n \n \n (96) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (1,686) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n \n \n (1,030) \n | \n \n \n - | \n \n \n \n \n (1,030) \n | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 800 | \n \n \n 13 | \n \n \n 413 | \n \n \n 1,225 | \n
| \n \n Debt securities and money market investments | \n \n \n 55 | \n \n \n 1,366 | \n \n \n 36 | \n \n \n 1,457 | \n
| \n \n Unconsolidated investment funds | \n \n \n 11,800 | \n \n \n 11 | \n \n \n 939 | \n \n \n 12,750 | \n
| \n \n Other | \n \n \n - | \n \n \n 15 | \n \n \n - | \n \n \n 15 | \n
| \n | \n\n \n 12,655 | \n \n \n 1,404 | \n \n \n 1,388 | \n \n \n 15,447 | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (95) \n | \n \n \n 29 | \n \n \n \n \n (48) \n | \n \n \n \n \n (114) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (1,085) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,085) \n | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n
| \n | \n\n \n \n \n (1,181) \n | \n \n \n 31 | \n \n \n \n \n (48) \n | \n \n \n \n \n (1,197) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Loans | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n | \n\n \n - | \n \n \n \n \n (16) \n | \n \n \n - | \n \n \n \n \n (16) \n | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n \n \n (28) \n | \n \n \n - | \n \n \n \n \n (18) \n | \n \n \n \n \n (46) \n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n | \n\n \n \n \n (28) \n | \n \n \n 2 | \n \n \n \n \n (18) \n | \n \n \n \n \n (44) \n | \n
| \n \n On December 31 | \n \n \n 11,446 | \n \n \n 1,421 | \n \n \n 1,322 | \n \n \n 14,190 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 12,627 | \n \n \n \n \n (562) \n | \n \n \n 1,370 | \n \n \n 13,435 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (1,181) \n | \n \n \n 95 | \n \n \n \n \n (48) \n | \n \n \n \n \n (1,134) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n 1,888 | \n \n \n - | \n \n \n 1,888 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n \n \n (1,566) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (950) \n | \n \n \n \n \n (2,548) \n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (1,153) \n | \n \n \n \n \n (14,958) \n | \n \n \n \n \n (737) \n | \n \n \n \n \n (16,847) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n \n \n (18,538) \n | \n \n \n \n \n (38) \n | \n \n \n \n \n (1,785) \n | \n \n \n \n \n (20,360) \n | \n
| \n \n Other | \n \n \n - | \n \n \n 329 | \n \n \n - | \n \n \n 329 | \n
| \n | \n\n \n \n \n (21,256) \n | \n \n \n \n \n (14,699) \n | \n \n \n \n \n (3,471) \n | \n \n \n \n \n (39,427) \n | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (333) \n | \n \n \n \n \n (361) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (1,080) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (3,093) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,093) \n | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n \n \n (3) \n | \n
| \n | \n\n \n \n \n (3,427) \n | \n \n \n \n \n (364) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (4,176) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Loans | \n \n \n - | \n \n \n 36 | \n \n \n - | \n \n \n 36 | \n
| \n | \n\n \n - | \n \n \n 35 | \n \n \n - | \n \n \n 35 | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 36 | \n \n \n - | \n \n \n 36 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n \n \n (33) \n | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n \n \n (56) \n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n \n \n \n Net foreign currency gains and (losses) \n | \n \n \n - | \n \n \n 37 | \n \n \n - | \n \n \n 37 | \n
| \n | \n\n \n \n \n (33) \n | \n \n \n 38 | \n \n \n \n \n (23) \n | \n \n \n \n \n (18) \n | \n
| \n \n On December 31 | \n \n \n \n \n (24,716) \n | \n \n \n \n \n (14,990) \n | \n \n \n \n \n (3,880) \n | \n \n \n \n \n (43,586) \n | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n \n \n (21,289) \n | \n \n \n \n \n (714) \n | \n \n \n \n \n (3,495) \n | \n \n \n \n \n (25,498) \n | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (3,427) \n | \n \n \n \n \n (194) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (4,006) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n \n \n (14,081) \n | \n \n \n - | \n \n \n \n \n (14,081) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 65 | \n \n \n 89 | \n \n \n 49 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n 13 | \n \n \n - | \n \n \n - | \n
| \n \n Non-derivative assets - PH designated | \n \n \n 108 | \n \n \n - | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 186 | \n \n \n 89 | \n \n \n 49 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 368 | \n \n \n 195 | \n \n \n \n \n (281) \n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (55) \n | \n \n \n 46 | \n \n \n \n \n (222) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n 7,367 | \n \n \n 6,805 | \n \n \n \n \n (9,961) \n | \n
| \n | \n\n \n 7,680 | \n \n \n 7,047 | \n \n \n \n \n (10,463) \n | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (38) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (162) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n 3 | \n \n \n 5 | \n \n \n 29 | \n
| \n \n Change in fair value of hedges on guarantees in investment contracts without DPF | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n 2 | \n \n \n 3 | \n \n \n 4 | \n
| \n | \n\n \n \n \n (35) \n | \n \n \n - | \n \n \n \n \n (129) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n \n \n \n \n (58) \n | \n
| \n | \n\n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n \n \n \n \n (58) \n | \n
| \n \n Comprised of: | \n \n | \n\n | \n\n | \n
| \n \n \n \n Investments measured at fair value through other comprehensive income (\"FVOCI\") \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n \n \n \n \n (58) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n 1 | \n \n \n \n \n (6) \n | \n \n \n \n \n (5) \n | \n
| \n \n \n \n Net foreign currency gains and (losses) \n | \n \n \n \n \n (2) \n | \n \n \n 2 | \n \n \n \n \n (1) \n | \n
| \n | \n\n \n - | \n \n \n \n \n (4) \n | \n \n \n \n \n (6) \n | \n
| \n \n On December 31 | \n \n \n 7,634 | \n \n \n 6,929 | \n \n \n \n \n (10,656) \n | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 7,666 | \n \n \n 7,043 | \n \n \n \n \n (10,466) \n | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n 14 | \n \n \n 3 | \n \n \n 3 | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n \n \n (47) \n | \n \n \n \n \n (117) \n | \n \n \n \n \n (192) \n | \n
| \n | \n\n | \n\n \n 2024 | \n |||
| \n \n Investments | \n \n \n Insurance related | \n \n \n Non-Insurance related 1 | \n \n \n Total | \n ||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n|
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n | \n\n | \n
| \n \n Financial assets measured at FVOCI \u2013 with recycling | \n \n \n - | \n \n \n 46,719 | \n \n \n - | \n \n \n 7,958 | \n \n \n 54,677 | \n
| \n \n Financial assets measured at FVOCI \u2013 no recycling | \n \n \n - | \n \n \n 38 | \n \n \n - | \n \n \n 1 | \n \n \n 39 | \n
| \n \n Financial assets measured at amortized cost | \n \n \n - | \n \n \n 8,220 | \n \n \n - | \n \n \n 2,425 | \n \n \n 10,645 | \n
| \n \n Financial assets measured at FVPL \u2013 designated | \n \n \n 117,167 | \n \n \n 1,926 | \n \n \n 23,687 | \n \n \n 77,400 | \n \n \n 220,180 | \n
| \n \n Financial assets measured at FVPL \u2013 mandatory | \n \n \n - | \n \n \n 6,690 | \n \n \n - | \n \n \n 970 | \n \n \n 7,661 | \n
| \n \n Total financial assets, excluding derivatives | \n \n \n 117,167 | \n \n \n 63,593 | \n \n \n 23,687 | \n \n \n 88,754 | \n \n \n 293,202 | \n
| \n \n Investments in real estate | \n \n \n 237 | \n \n \n 57 | \n \n \n 150 | \n \n \n 70 | \n \n \n 514 | \n
| \n \n Total investments | \n \n \n 117,405 | \n \n \n 63,651 | \n \n \n 23,837 | \n \n \n 88,823 | \n \n \n 293,716 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n \n Investments | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Total | \n |||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n||
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Without direct part. | \n \n | \n\n | \n
| \n \n Financial assets measured at FVOCI \u2013 with recycling | \n \n \n - | \n \n \n 44,404 | \n \n \n - | \n \n \n 5,854 | \n \n \n 97 | \n \n \n 50,354 | \n
| \n \n Financial assets measured at FVOCI \u2013 no recycling | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 10 | \n
| \n \n Financial assets measured at amortized cost | \n \n \n - | \n \n \n 7,941 | \n \n \n - | \n \n \n 2,216 | \n \n \n 70 | \n \n \n 10,227 | \n
| \n \n Financial assets measured at FVPL \u2013 designated | \n \n \n 107,714 | \n \n \n 2,078 | \n \n \n 47,759 | \n \n \n 19 | \n \n \n 38,347 | \n \n \n 195,916 | \n
| \n \n Financial assets measured at FVPL \u2013 mandatory | \n \n \n - | \n \n \n 8,889 | \n \n \n - | \n \n \n 386 | \n \n \n 111 | \n \n \n 9,386 | \n
| \n \n Total financial assets, excluding derivatives | \n \n \n 107,714 | \n \n \n 63,321 | \n \n \n 47,759 | \n \n \n 8,474 | \n \n \n 38,626 | \n \n \n 265,894 | \n
| \n \n Investments in real estate | \n \n \n 227 | \n \n \n 55 | \n \n \n 152 | \n \n \n - | \n \n \n 54 | \n \n \n 488 | \n
| \n \n Total investments | \n \n \n 107,941 | \n \n \n 63,376 | \n \n \n 47,911 | \n \n \n 8,474 | \n \n \n 38,680 | \n \n \n 266,382 | \n
| \n \n Financial assets, excluding derivatives, by measurement category | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n \n \n FVOCI | \n \n \n \n \n FVOCI | \n \n \n Amortized | \n \n \n \n \n FVPL | \n \n \n \n \n FVPL | \n \n \n Total | \n \n \n Fair value | \n |
| \n \n Investments where Aegon bears the risk for investment performance | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n - | \n \n \n 39 | \n \n \n - | \n \n \n - | \n \n \n 279 | \n \n \n 317 | \n \n \n 317 | \n
| \n \n Debt securities | \n \n \n 52,211 | \n \n \n - | \n \n \n 36 | \n \n \n 1,400 | \n \n \n 985 | \n \n \n 54,632 | \n \n \n 54,632 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,435 | \n \n \n - | \n \n \n - | \n \n \n 157 | \n \n \n 1,939 | \n \n \n 4,531 | \n \n \n 4,531 | \n
| \n \n Deposits with financial institutions | \n \n \n - | \n \n \n - | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 11 | \n \n \n 11 | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n 10,598 | \n \n \n 82 | \n \n \n - | \n \n \n 10,680 | \n \n \n 9,462 | \n
| \n \n Other | \n \n \n 31 | \n \n \n - | \n \n \n - | \n \n \n 718 | \n \n \n 4,458 | \n \n \n 5,207 | \n \n \n 5,207 | \n
| \n \n Total | \n \n \n 54,677 | \n \n \n 39 | \n \n \n 10,645 | \n \n \n 2,356 | \n \n \n 7,661 | \n \n \n 75,377 | \n \n \n 74,159 | \n
| \n \n Financial assets, excluding derivatives, by measurement category | \n \n | \n\n | \n\n | \n\n \n 2023 | \n |||
| \n \n \n \n FVOCI | \n \n \n \n \n FVOCI | \n \n \n Amortized | \n \n \n \n \n FVPL | \n \n \n \n \n FVPL | \n \n \n Total | \n \n \n Fair value | \n |
| \n \n Investments where Aegon bears the risk for investment performance | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 291 | \n \n \n 300 | \n \n \n 300 | \n
| \n \n Debt securities | \n \n \n 47,191 | \n \n \n - | \n \n \n 52 | \n \n \n 1,538 | \n \n \n 858 | \n \n \n 49,639 | \n \n \n 49,639 | \n
| \n \n Money market and other short-term investments | \n \n \n 3,135 | \n \n \n - | \n \n \n - | \n \n \n 215 | \n \n \n 3,999 | \n \n \n 7,349 | \n \n \n 7,349 | \n
| \n \n Deposits with financial institutions | \n \n \n - | \n \n \n - | \n \n \n 18 | \n \n \n - | \n \n \n - | \n \n \n 18 | \n \n \n 18 | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n 10,157 | \n \n \n - | \n \n \n - | \n \n \n 10,157 | \n \n \n 9,026 | \n
| \n \n Other | \n \n \n 29 | \n \n \n - | \n \n \n - | \n \n \n 773 | \n \n \n 4,239 | \n \n \n 5,040 | \n \n \n 5,040 | \n
| \n \n Total | \n \n \n 50,354 | \n \n \n 10 | \n \n \n 10,227 | \n \n \n 2,526 | \n \n \n 9,386 | \n \n \n 72,504 | \n \n \n 71,372 | \n
In both 2024 and 2023, no significant transactions took place with respect to shares recognized at FVOCI. No dividends were received during 2024 (2023: 0).
| \n \n Financial assets, excluding derivatives, by measurement category | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n FVPL | \n \n \n FVPL | \n |
| \n \n Investments where policyholders bear the risk for investment performance | \n \n | \n\n | \n
| \n \n Shares | \n \n \n 15,198 | \n \n \n 16,191 | \n
| \n \n Debt securities | \n \n \n 6,259 | \n \n \n 6,172 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,541 | \n \n \n 1,346 | \n
| \n \n Unconsolidated investment funds | \n \n \n 192,775 | \n \n \n 167,411 | \n
| \n \n Deposits with financial institutions | \n \n \n 2,052 | \n \n \n 2,271 | \n
| \n \n Total | \n \n \n 217,824 | \n \n \n 193,390 | \n
Of the debt securities, money market, and other short-term investments and loans EUR 6,106 million is current (December 31, 2023: EUR 8,727 million).\u00a0
See note 38 Fair Value\u00a0for information on fair value measurement, including loans that are held at amortized cost.
Where necessary, Aegon applied the fair value option on investments where policyholders bear the risk for investment performance.
In 2024, the Group has not made changes to its business model or reclassified financial assets.
See note 38 Fair Value\u00a0for a summary of all financial assets and financial liabilities measured at fair value through profit or loss. See note 40 Transfers of financial assets for a discussion of collateral received and paid.\u00a0
\n| \n | \n\n \n Derivative asset | \n \n \n Derivative liability | \n ||
| \n \n Derivatives not designated in a hedge \u2013 where Aegon bears the risk | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Derivatives held as an economic hedge | \n \n \n 477 | \n \n \n 1,171 | \n \n \n 954 | \n \n \n 812 | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n - | \n \n \n 71 | \n \n \n 53 | \n
| \n \n Total | \n \n \n 477 | \n \n \n 1,171 | \n \n \n 1,025 | \n \n \n 865 | \n
Aegon utilizes derivative instruments as a part of its asset-liability risk management practices. The derivatives held for risk management purposes are classified as economic hedges to the extent that they do not qualify for hedge accounting, or that Aegon has elected not to apply hedge accounting. The economic hedges of certain exposures relate to an existing asset, liability, or future reinvestment risk. In all cases, these are in accordance with internal risk guidelines and are closely monitored for continuing compliance.
Bifurcated embedded derivatives that are not closely related to the host contracts have been bifurcated and recorded at fair value in the consolidated statement of financial position. These bifurcated embedded derivatives are embedded in various institutional products.
\nAegon has entered into free-standing credit derivative transactions. The positions outstanding at the end of the year were:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n \n Credit derivative disclosure by quality | \n \n \n Notional | \n \n \n Fair value | \n \n \n Notional | \n \n \n Fair value | \n
| \n \n AAA | \n \n \n 4 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n
| \n \n AA | \n \n \n 111 | \n \n \n 1 | \n \n \n 97 | \n \n \n 1 | \n
| \n \n A | \n \n \n 1,233 | \n \n \n 16 | \n \n \n 1,021 | \n \n \n 16 | \n
| \n \n BBB | \n \n \n 2,310 | \n \n \n 50 | \n \n \n 2,746 | \n \n \n 52 | \n
| \n \n BB | \n \n \n 141 | \n \n \n 1 | \n \n \n 119 | \n \n \n 1 | \n
| \n \n B or lower | \n \n \n 51 | \n \n \n - | \n \n \n 57 | \n \n \n - | \n
| \n \n Total | \n \n \n 3,851 | \n \n \n 68 | \n \n \n 4,043 | \n \n \n 71 | \n
The\u00a0use of credit default swaps (CDS) is to create synthetic bonds. Aegon US uses credit default swaps to replicate or synthesize bonds, this is done via Replication (Synthetic Asset) Transactions (RSAT).\u00a0 This is an insurance industry concept that\u00a0allows insurance companies to use a derivative in conjunction with a cash investment to reproduce the investment characteristics of an otherwise permissible investment. There are three main types of RSAT transactions:
single asset replications
RSATs involving indices
RSATs involving baskets of assets
In each case the approach allows Aegon US to access credit risk in derivative form by using credit default swaps in conjunction with cash or sovereign bonds to replicate (synthetically create) corporate bonds. \u00a0The table above provides a\u00a0breakdown of the credit quality of these credit derivatives.
\nAegon's fair value hedges include interest rate swaps, swaptions, equity and fixed income total return swaps, equity options, equity futures, bond futures and variance swaps that are used to protect against changes in the fair value of interest rate and equity-sensitive instruments or liabilities. Gains and losses on derivatives designated under fair value hedge accounting are recognized in the income statement. The effective portion of the fair value change on the hedged item is also recognized in the income statement. As a result, only the net accounting ineffectiveness has an impact on the net result.
Aegon has entered into interest rate swap agreements that effectively convert certain fixed-rate assets and liabilities to a\u00a0floating-rate basis. These hedges are used for portfolio management to better match assets to liabilities or to protect the\u00a0value of the hedged item from interest rate movements. These agreements involve the payment or receipt of fixed-rate interest amounts in exchange for floating-rate interest amounts over the life of the agreement without the exchange of the underlying principal amounts. Some of the arrangements use forward starting swaps to better match the duration of assets and liabilities.
Aegon has entered into cross-currency interest rate swap agreements that effectively convert certain foreign currency fixed-rate and floating-rate assets and liabilities to US dollar floating-rate assets and liabilities. These agreements involve the exchange of the underlying principal amounts.
\nThe following table sets out the maturity profile and average price/rate of the hedging instruments used in Aegon\u2019s hedging strategies:
| \n \n Notionals are in EUR million | \n \n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n Maturity | \n ||||
| \n | \n\n \n Up to 1 month | \n \n \n 1-3 months | \n \n \n 3-12 months | \n \n \n 1-5 years | \n \n \n > 5 years | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n 22 | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,352 | \n
| \n \n Average fixed interest rate | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3.06% | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 190 | \n \n \n 1,013 | \n
| \n \n Average exchange rate EUR/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.13 | \n \n \n 1.13 | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate USD/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.88 | \n \n \n 0.89 | \n
| \n \n Average exchange rate USD/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.74 | \n \n \n 0.76 | \n
| \n \n Average exchange rate GBP/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate GBP/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.35 | \n \n \n 1.32 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n 22 | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/USD | \n \n \n 0.97 | \n \n \n 0.97 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n 1.21 | \n \n \n 1.21 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Notionals are in EUR million | \n \n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n \n Maturity | \n ||||
| \n | \n\n \n Up to 1 month | \n \n \n 1-3 months | \n \n \n 3-12 months | \n \n \n 1-5 years | \n \n \n > 5 years | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 88 | \n \n \n 21 | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,540 | \n
| \n \n Average fixed interest rate | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2.83% | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 121 | \n \n \n 835 | \n
| \n \n Average exchange rate EUR/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.16 | \n \n \n 1.13 | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate USD/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.87 | \n \n \n 0.88 | \n
| \n \n Average exchange rate USD/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.74 | \n \n \n 0.76 | \n
| \n \n Average exchange rate GBP/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.35 | \n \n \n 1.32 | \n
| \n \n Average exchange rate GBP/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n \n \n (8) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/USD | \n \n \n 0.91 | \n \n \n 0.91 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n 1.15 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
The following table contains details of the hedging instruments used in Aegon\u2019s hedging strategies that are booked under line item \"Derivatives\" in the consolidated statement of financial position:
| \n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n | \n\n \n Carrying amounts | \n \n | \n|
| \n | \n\n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Changes in fair value used for calculating hedge ineffectiveness | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 32 | \n \n \n - | \n \n \n 3 | \n \n \n 2 | \n
| \n \n Foreign exchange contracts | \n \n \n 9 | \n \n \n 3 | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 5,352 | \n \n \n 12 | \n \n \n 1,092 | \n \n \n \n \n (106) \n | \n
| \n \n Foreign exchange contracts | \n \n \n 1,202 | \n \n \n 124 | \n \n \n 8 | \n \n \n 15 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n 27 | \n \n \n 26 | \n \n \n 2 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n | \n\n \n Carrying amounts | \n \n | \n|
| \n | \n\n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Changes in fair value used for calculating hedge ineffectiveness | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 109 | \n \n \n 1 | \n \n \n 4 | \n \n \n - | \n
| \n \n Foreign exchange contracts | \n \n \n 8 | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 5,540 | \n \n \n 42 | \n \n \n 950 | \n \n \n 106 | \n
| \n \n Foreign exchange contracts | \n \n \n 956 | \n \n \n 105 | \n \n \n 11 | \n \n \n \n \n (44) \n | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n \n \n (9) \n | \n \n \n 39 | \n \n \n 48 | \n \n \n - | \n
The following table contains details of the hedged exposures covered by Aegon\u2019s hedging strategies that are booked under line item \"Derivatives\" in the consolidated statement of financial position:
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n Carrying amounts | \n \n \n Accumulated amount of fair value adjustments on the hedged item | \n \n | \n\n | \n||
| \n | \n\n \n Assets | \n \n \n Liabilities | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Balance sheet line item | \n \n \n Change in fair value of hedged item for ineffectiveness assessment | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Corporate Debt Hedge Program | \n \n \n - | \n \n \n 66 | \n \n \n - | \n \n \n \n \n (19) \n | \n \n \n Trust pass-through securities | \n \n \n 3 | \n
| \n \n Offshore Liability Hedge Program | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 2 | \n \n \n Investment contracts without discretionary participating features | \n \n \n - | \n
| \n \n Synthetic Asset Fair value hedges | \n \n \n 35 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n Investments | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n \n Carrying amounts | \n \n \n Accumulated amount of fair value adjustments on the hedged item | \n \n | \n\n | \n||
| \n | \n\n \n Assets | \n \n \n Liabilities | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Balance sheet line item | \n \n \n Change in fair value of hedged item for ineffectiveness assessment | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Corporate Debt Hedge Program | \n \n \n - | \n \n \n 67 | \n \n \n - | \n \n \n \n \n (13) \n | \n \n \n Trust pass-through securities | \n \n \n 3 | \n
| \n \n Offshore Liability Hedge Program | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 2 | \n \n \n Investment contracts without discretionary participating features | \n \n \n - | \n
| \n \n Synthetic Asset Fair value hedges | \n \n \n 34 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n Investments | \n \n \n 1 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 10,222 | \n \n \n 9,597 | \n
| \n \n Deposits | \n \n \n 1,595 | \n \n \n 1,606 | \n
| \n \n Withdrawals | \n \n \n \n \n (1,236) \n | \n \n \n \n \n (1,405) \n | \n
| \n \n Interest credited | \n \n \n 288 | \n \n \n 221 | \n
| \n \n Net exchange differences | \n \n \n 755 | \n \n \n \n \n (345) \n | \n
| \n \n Transfer to/from other headings | \n \n \n 1,038 | \n \n \n 567 | \n
| \n \n Other | \n \n \n \n \n (72) \n | \n \n \n \n \n (18) \n | \n
| \n \n On December 31 | \n \n \n 12,592 | \n \n \n 10,222 | \n
| \n \n Investment contracts consist of the following: | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Institutional guaranteed products | \n \n \n 182 | \n \n \n 169 | \n
| \n \n Fixed annuities | \n \n \n 12,378 | \n \n \n 10,024 | \n
| \n \n Other | \n \n \n 32 | \n \n \n 29 | \n
| \n \n On December 31 | \n \n \n 12,592 | \n \n \n 10,222 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 65,044 | \n \n \n 55,631 | \n
| \n \n Gross premium and deposits \u2013 existing and new business | \n \n \n 14,932 | \n \n \n 12,648 | \n
| \n \n Withdrawals | \n \n \n \n \n (11,807) \n | \n \n \n \n \n (9,840) \n | \n
| \n \n Interest credited | \n \n \n 8,467 | \n \n \n 7,636 | \n
| \n \n Fund charges released | \n \n \n \n \n (367) \n | \n \n \n \n \n (313) \n | \n
| \n \n Net exchange differences | \n \n \n 3,868 | \n \n \n \n \n (40) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (1,060) \n | \n \n \n \n \n (680) \n | \n
| \n \n Other | \n \n \n 1 | \n \n \n 2 | \n
| \n \n On December 31 | \n \n \n 79,078 | \n \n \n 65,044 | \n
The estimated fair values of Aegon\u2019s assets and liabilities correspond with the amounts that would be received to sell an\u00a0asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When\u00a0available, Aegon uses quoted market prices in active markets to determine the fair value of investments and derivatives. In\u00a0the\u00a0absence of an active market, the fair value of investments in financial assets is estimated by using other market observable data, such as corroborated external quotes and present value or other valuation techniques. An active market is one in which transactions are taking place regularly on an arm\u2019s length basis. Fair value is not determined based on a forced liquidation or distressed sale.
Valuation techniques are used when Aegon determines the market is inactive or quoted market prices are not available for the\u00a0asset or liability at the measurement date. However, the fair value measurement objective remains the same, that is, to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). Therefore, unobservable inputs reflect Aegon\u2019s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). These inputs are developed based on the best information available.
Aegon employs an oversight structure over the valuation of financial instruments that includes the appropriate segregation of duties. Senior management, independent of the investing functions, is responsible for the oversight of control and valuation policies and for reporting the results of these policies. For fair values determined by reference to external quotation or evidenced pricing parameters, independent price determination or validation is utilized to corroborate those inputs. Further details of the validation processes are set out below.
Valuation of assets and liabilities is based on a pricing hierarchy, in order to maintain a controlled process that will systematically promote the use of prices from sources in which Aegon has the most confidence, where the least amount of manual intervention exists, and to embed consistency in the selection of price sources. Depending on asset type the pricing hierarchy consists of a waterfall that starts with making use of market prices from indices and follows with making use of third-party pricing services or brokers.
\nThe following table sets out the fair values of financial instruments by the level of the fair value hierarchy into which each fair value measurement is categorized. It does not include fair value information for cash and cash equivalents, receivables, and payables, whose carrying amounts are a reasonable approximation of fair value, or for lease liabilities.
| \n | \n\n \n 2024 | \n |||
| \n \n Fair value hierarchy | \n \n \n Level I | \n \n \n Level II | \n \n \n Level III | \n \n \n Total | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 34 | \n \n \n - | \n \n \n 4 | \n \n \n 39 | \n
| \n \n Debt securities | \n \n \n 5,170 | \n \n \n 46,242 | \n \n \n 799 | \n \n \n 52,211 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,388 | \n \n \n 47 | \n \n \n - | \n \n \n 2,435 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 31 | \n \n \n - | \n \n \n 31 | \n
| \n | \n\n \n 7,592 | \n \n \n 46,320 | \n \n \n 803 | \n \n \n 54,715 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 163 | \n \n \n 30 | \n \n \n 86 | \n \n \n 279 | \n
| \n \n Debt securities | \n \n \n 308 | \n \n \n 1,970 | \n \n \n 107 | \n \n \n 2,385 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,961 | \n \n \n 135 | \n \n \n - | \n \n \n 2,096 | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n 82 | \n
| \n \n Other investments at fair value | \n \n \n 1 | \n \n \n 718 | \n \n \n 4,457 | \n \n \n 5,176 | \n
| \n \n Derivatives | \n \n \n 30 | \n \n \n 732 | \n \n \n 9 | \n \n \n 771 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 57 | \n \n \n 57 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 457 | \n \n \n 457 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 97,682 | \n \n \n 119,829 | \n \n \n 312 | \n \n \n 217,824 | \n
| \n | \n\n \n 100,146 | \n \n \n 123,414 | \n \n \n 5,567 | \n \n \n 229,127 | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n 66 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 107,738 | \n \n \n 169,734 | \n \n \n 6,436 | \n \n \n 283,908 | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 79,078 | \n \n \n - | \n \n \n 79,078 | \n
| \n \n Derivatives | \n \n \n 53 | \n \n \n 2,382 | \n \n \n - | \n \n \n 2,435 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 53 | \n \n \n 81,460 | \n \n \n - | \n \n \n 81,513 | \n
| \n | \n\n \n 2023 | \n |||
| \n \n Fair value hierarchy | \n \n \n Level I | \n \n \n Level II | \n \n \n Level III | \n \n \n Total | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 5 | \n \n \n - | \n \n \n 4 | \n \n \n 10 | \n
| \n \n Debt securities | \n \n \n 5,644 | \n \n \n 41,031 | \n \n \n 516 | \n \n \n 47,191 | \n
| \n \n Money market and other short-term investments | \n \n \n 3,028 | \n \n \n 97 | \n \n \n 9 | \n \n \n 3,135 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 29 | \n \n \n - | \n \n \n 29 | \n
| \n | \n\n \n 8,678 | \n \n \n 41,157 | \n \n \n 530 | \n \n \n 50,364 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 153 | \n \n \n 43 | \n \n \n 94 | \n \n \n 291 | \n
| \n \n Debt securities | \n \n \n 302 | \n \n \n 2,009 | \n \n \n 86 | \n \n \n 2,396 | \n
| \n \n Money market and other short-term investments | \n \n \n 4,041 | \n \n \n 173 | \n \n \n - | \n \n \n 4,215 | \n
| \n \n Other investments at fair value | \n \n \n 1 | \n \n \n 773 | \n \n \n 4,237 | \n \n \n 5,011 | \n
| \n \n Derivatives | \n \n \n 47 | \n \n \n 1,374 | \n \n \n 8 | \n \n \n 1,429 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 55 | \n \n \n 55 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 433 | \n \n \n 433 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 90,027 | \n \n \n 103,022 | \n \n \n 342 | \n \n \n 193,390 | \n
| \n | \n\n \n 94,570 | \n \n \n 107,395 | \n \n \n 5,255 | \n \n \n 207,220 | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n 61 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 103,248 | \n \n \n 148,551 | \n \n \n 5,846 | \n \n \n 257,645 | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 65,044 | \n \n \n - | \n \n \n 65,044 | \n
| \n \n Derivatives | \n \n \n 39 | \n \n \n 2,434 | \n \n \n 6 | \n \n \n 2,479 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 39 | \n \n \n 67,478 | \n \n \n 6 | \n \n \n 67,523 | \n
Aegon\u2019s policy is to record transfers of assets and liabilities between Level I, Level II and Level III at their fair values from the beginning of each reporting period.
The table below shows transfers between Level I and Level II for financial assets and financial liabilities recorded at fair value on a recurring basis.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n \n Significant transfers between level I, level II and level III | \n \n \n Transfers Level I to Level II | \n \n \n Transfers Level II to Level I | \n \n \n Transfers Level I to Level II | \n \n \n Transfers Level II to Level I | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n 308 | \n \n \n 261 | \n \n \n - | \n \n \n 141 | \n
| \n \n Money market and other short-term investments | \n \n \n 48 | \n \n \n - | \n \n \n 45 | \n \n \n 245 | \n
| \n | \n\n \n 356 | \n \n \n 261 | \n \n \n 45 | \n \n \n 386 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n 11 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n Money market and other short-term investments | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 795 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n - | \n
| \n | \n\n \n 11 | \n \n \n 4 | \n \n \n 1 | \n \n \n 795 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 367 | \n \n \n 265 | \n \n \n 46 | \n \n \n 1,182 | \n
Transfers are identified based on transaction volume and frequency, which are indicative of an active market.
\nThe following table summarizes the change of all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level III), including realized and unrealized gains (losses) of all assets and liabilities and unrealized gains (losses) of all assets and liabilities still held at the end of the respective period.
| \n \n Financial assets carried at fair value | \n \n \n On January 1, 2024 | \n \n \n Total gains / losses in income state- ment 1 | \n \n \n Total gains / losses in OCI 2 | \n \n \n Purch- ases | \n \n \n Sales | \n \n \n Settle- ments | \n \n \n Net ex- change diffe- rence | \n \n \n Reclas- sifica- tion | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total unrealized gains and losses recorded in the P&L for instruments held at December 31, 2024 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 516 | \n \n \n 9 | \n \n \n \n \n (27) \n | \n \n \n 218 | \n \n \n \n \n (126) \n | \n \n \n \n \n (41) \n | \n \n \n 44 | \n \n \n - | \n \n \n 301 | \n \n \n \n \n (96) \n | \n \n \n 799 | \n \n \n - | \n
| \n \n Money markets and other short-term investments | \n \n \n 9 | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 530 | \n \n \n 9 | \n \n \n \n \n (36) \n | \n \n \n 218 | \n \n \n \n \n (126) \n | \n \n \n \n \n (41) \n | \n \n \n 44 | \n \n \n - | \n \n \n 301 | \n \n \n \n \n (96) \n | \n \n \n 803 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 94 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n 16 | \n \n \n \n \n (27) \n | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 86 | \n \n \n \n \n (5) \n | \n
| \n \n Debt securities | \n \n \n 86 | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n 18 | \n \n \n \n \n (14) \n | \n \n \n \n \n (5) \n | \n \n \n 6 | \n \n \n - | \n \n \n 53 | \n \n \n \n \n (18) \n | \n \n \n 107 | \n \n \n \n \n (18) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n 68 | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n - | \n
| \n \n Other investments at fair value | \n \n \n 4,237 | \n \n \n \n \n (175) \n | \n \n \n - | \n \n \n 505 | \n \n \n \n \n (323) \n | \n \n \n - | \n \n \n 280 | \n \n \n \n \n (68) \n | \n \n \n - | \n \n \n - | \n \n \n 4,457 | \n \n \n \n \n (206) \n | \n
| \n \n Derivatives | \n \n \n 8 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 1 | \n
| \n \n Investments in real estate | \n \n \n 55 | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 57 | \n \n \n - | \n
| \n \n Investments in real estate for policyholders | \n \n \n 433 | \n \n \n 9 | \n \n \n - | \n \n \n 26 | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n 21 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 457 | \n \n \n 59 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 342 | \n \n \n 3 | \n \n \n - | \n \n \n 62 | \n \n \n \n \n (112) \n | \n \n \n - | \n \n \n 18 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 312 | \n \n \n 1 | \n
| \n | \n\n \n 5,255 | \n \n \n \n \n (183) \n | \n \n \n - | \n \n \n 638 | \n \n \n \n \n (511) \n | \n \n \n \n \n (5) \n | \n \n \n 338 | \n \n \n - | \n \n \n 53 | \n \n \n \n \n (18) \n | \n \n \n 5,567 | \n \n \n \n \n (169) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n 64 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n \n \n (1) \n | \n
| \n | \n\n \n 64 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets measured at fair value | \n \n \n 5,849 | \n \n \n \n \n (174) \n | \n \n \n \n \n (37) \n | \n \n \n 857 | \n \n \n \n \n (638) \n | \n \n \n \n \n (45) \n | \n \n \n 385 | \n \n \n - | \n \n \n 354 | \n \n \n \n \n (114) \n | \n \n \n 6,436 | \n \n \n \n \n (169) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets carried at fair value | \n \n \n On January 1, 2023 | \n \n \n Total gains / losses in income state- ment 1 | \n \n \n Total gains / losses in OCI 2 | \n \n \n Purch- ases | \n \n \n Sales | \n \n \n Settle- ments | \n \n \n Net ex- change diffe- rence | \n \n \n Reclas- sifica- tion | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total unrealized gains and losses recorded in the P&L for instruments held at December 31, 2023 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 181 | \n \n \n \n \n (1) \n | \n \n \n 11 | \n \n \n 263 | \n \n \n \n \n (124) \n | \n \n \n \n \n (15) \n | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 214 | \n \n \n \n \n (1) \n | \n \n \n 516 | \n \n \n - | \n
| \n \n Money markets and other short-term investments | \n \n \n 5 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n - | \n
| \n | \n\n \n 191 | \n \n \n \n \n (1) \n | \n \n \n 15 | \n \n \n 263 | \n \n \n \n \n (124) \n | \n \n \n \n \n (15) \n | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 214 | \n \n \n \n \n (1) \n | \n \n \n 530 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 127 | \n \n \n 2 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (47) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 94 | \n \n \n 3 | \n
| \n \n Debt securities | \n \n \n 35 | \n \n \n 17 | \n \n \n - | \n \n \n 38 | \n \n \n \n \n (43) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n 46 | \n \n \n - | \n \n \n 86 | \n \n \n \n \n (8) \n | \n
| \n \n Money markets and other short-term investments | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n
| \n \n Other investments at fair value | \n \n \n 4,050 | \n \n \n \n \n (65) \n | \n \n \n - | \n \n \n 652 | \n \n \n \n \n (254) \n | \n \n \n - | \n \n \n \n \n (144) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,237 | \n \n \n \n \n (70) \n | \n
| \n \n Derivatives | \n \n \n 11 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n \n \n \n \n (3) \n | \n
| \n \n Investments in real estate | \n \n \n 59 | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 55 | \n \n \n - | \n
| \n \n Investments in real estate for policyholders | \n \n \n 443 | \n \n \n \n \n (52) \n | \n \n \n - | \n \n \n 42 | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 433 | \n \n \n \n \n (42) \n | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 402 | \n \n \n \n \n (37) \n | \n \n \n - | \n \n \n 37 | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 342 | \n \n \n - | \n
| \n | \n\n \n 5,128 | \n \n \n \n \n (136) \n | \n \n \n - | \n \n \n 782 | \n \n \n \n \n (422) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (142) \n | \n \n \n - | \n \n \n 51 | \n \n \n \n \n (2) \n | \n \n \n 5,255 | \n \n \n \n \n (120) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n 73 | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 64 | \n \n \n - | \n
| \n | \n\n \n 73 | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 64 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets measured at fair value | \n \n \n 5,392 | \n \n \n \n \n (141) \n | \n \n \n 13 | \n \n \n 1,044 | \n \n \n \n \n (546) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (157) \n | \n \n \n - | \n \n \n 265 | \n \n \n \n \n (3) \n | \n \n \n 5,849 | \n \n \n \n \n (120) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 12 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n
| \n | \n\n \n 12 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n
In 2023 and 2024, Aegon transferred certain financial instruments from Level I and II to Level III of the fair value hierarchy. The\u00a0reason for the change in level was that the market liquidity for these securities decreased, which led to a change in\u00a0market observability of prices. Prior to transfer, the fair value for the Level II securities was determined using observable market transactions, internal models or corroborated broker quotes respectively for the same or similar instruments. Since\u00a0the\u00a0transfer, all such assets have been valued using valuation models incorporating significant non-market-observable inputs or\u00a0uncorroborated broker quotes.
Similarly, during 2023 and 2024, Aegon transferred certain financial instruments from Level III to Level I and II of the fair value hierarchy. The change in level was mainly the result of a return of activity in the market for these securities, and that for these securities the fair value could be determined using observable market transactions or corroborated broker quotes for the same or similar instruments.
\nThe table below presents information about the\u00a0valuation techniques and significant unobservable inputs used for recurring fair value measurements for certain Level III financial instruments.
| \n | \n\n \n Valuation technique 1 | \n \n \n Significant unobservable input 2 | \n \n \n December 31, 2024 | \n \n \n \n \n Range (weighted average) \n | \n \n \n December 31, 2023 | \n \n \n \n \n Range (weighted average) \n | \n
| \n \n Assets carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value through OCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n Net asset value | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n - | \n \n | \n\n \n 4 | \n \n | \n
| \n \n Debt securities | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n Broker quote | \n \n \n n.a. | \n \n \n 688 | \n \n \n n.a. | \n \n \n 416 | \n \n \n n.a. | \n
| \n | \n\n \n Discounted cash flow | \n \n \n Constant Prepayment Rate | \n \n \n 28 | \n \n \n 21.11% | \n \n \n 2 | \n \n \n 1.81% | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n \n \n 98 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 799 | \n \n | \n\n \n 516 | \n \n | \n
| \n \n Other investments at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n \n Other | \n \n \n Other | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n 9 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n - | \n \n | \n\n \n 9 | \n \n | \n
| \n \n On December 31 | \n \n | \n\n | \n\n \n 799 | \n \n | \n\n \n 530 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n \n \n 91 | \n \n \n n.a. | \n
| \n \n Shares | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 3 | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 94 | \n \n \n n.a. | \n \n \n 80 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Other | \n \n \n n.a. | \n \n \n 13 | \n \n \n n.a. | \n \n \n 6 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 193 | \n \n | \n\n \n 180 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other investments at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 3,633 | \n \n | \n\n \n 3,532 | \n \n | \n
| \n \n Tax credit investments | \n \n \n Discounted cash flow | \n \n \n Discount rate | \n \n \n 823 | \n \n \n 6.72% | \n \n \n 705 | \n \n \n 6.88% | \n
| \n \n Loans | \n \n \n Other | \n \n \n n.a. | \n \n \n 82 | \n \n | \n\n \n - | \n \n | \n
| \n | \n\n | \n\n | \n\n \n 4,538 | \n \n | \n\n \n 4,237 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total assets at fair value 3 | \n \n | \n\n | \n\n \n 5,530 | \n \n | \n\n \n 4,947 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Embedded derivatives in insurance contracts | \n \n \n Discounted cash flow | \n \n \n Own credit spread | \n \n \n - | \n \n \n n.a | \n \n \n 3 | \n \n \n n.a | \n
| \n \n Other | \n \n \n Discounted cash flow | \n \n \n Other | \n \n \n - | \n \n \n n.a | \n \n \n 3 | \n \n \n n.a | \n
| \n \n Total liabilities at fair value | \n \n | \n\n | \n\n \n - | \n \n | \n\n \n 6 | \n \n | \n
For reference purposes, the valuation techniques included in the table above are described in more detail on the following pages.
\nThe following table presents the carrying values and estimated fair values of assets and liabilities, excluding assets and liabilities that are carried at fair value on a recurring basis.
| \n | \n\n \n Carrying amount | \n \n \n Estimated fair value hierarchy | \n \n \n Total estimated fair value December 31, 2024 | \n ||
| \n | \n\n \n Level I | \n \n \n Level II | \n \n \n Level III | \n ||
| \n \n Assets | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities - held at amortized cost | \n \n \n 36 | \n \n \n 36 | \n \n \n - | \n \n \n - | \n \n \n 36 | \n
| \n \n Loans - held at amortized cost | \n \n \n 10,598 | \n \n \n - | \n \n \n 1 | \n \n \n 9,379 | \n \n \n 9,380 | \n
| \n \n Deposits with financial institutions - held at amortized cost | \n \n \n 11 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 11 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Subordinated borrowings - held at amortized cost | \n \n \n 1,653 | \n \n \n 763 | \n \n \n 727 | \n \n \n - | \n \n \n 1,490 | \n
| \n \n Trust pass-through securities - held at amortized cost | \n \n \n 113 | \n \n \n - | \n \n \n 133 | \n \n \n - | \n \n \n 133 | \n
| \n \n Borrowings \u2013 held at amortized cost | \n \n \n 3,013 | \n \n \n 867 | \n \n \n 2,209 | \n \n \n - | \n \n \n 3,076 | \n
| \n \n Investment contracts - held at amortized cost | \n \n \n 12,592 | \n \n \n - | \n \n \n - | \n \n \n 9,432 | \n \n \n 9,432 | \n
| \n | \n\n \n Carrying amount | \n \n \n Estimated fair value hierarchy | \n \n \n Total estimated fair value December 31, 2023 | \n ||
| \n | \n\n \n Level I | \n \n \n Level II | \n \n \n Level III | \n ||
| \n \n Assets | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities - held at amortized cost | \n \n \n 52 | \n \n \n 52 | \n \n \n - | \n \n \n - | \n \n \n 52 | \n
| \n \n Loans - held at amortized cost | \n \n \n 10,157 | \n \n \n - | \n \n \n 1 | \n \n \n 9,024 | \n \n \n 9,025 | \n
| \n \n Deposits with financial institutions - held at amortized cost | \n \n \n 18 | \n \n \n 18 | \n \n \n 1 | \n \n \n - | \n \n \n 18 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Subordinated borrowings - held at amortized cost | \n \n \n 2,244 | \n \n \n 1,392 | \n \n \n 730 | \n \n \n - | \n \n \n 2,122 | \n
| \n \n Trust pass-through securities - held at amortized cost | \n \n \n 111 | \n \n \n - | \n \n \n 125 | \n \n \n - | \n \n \n 125 | \n
| \n \n Borrowings \u2013 held at amortized cost | \n \n \n 2,356 | \n \n \n 879 | \n \n \n 1,580 | \n \n \n - | \n \n \n 2,459 | \n
| \n \n Investment contracts - held at amortized cost | \n \n \n 10,222 | \n \n \n - | \n \n \n - | \n \n \n 8,755 | \n \n \n 8,755 | \n
Certain financial instruments that are not carried at fair value are carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and cash equivalents, short-term receivables and accrued interest receivable, short-term liabilities, and accrued liabilities. These instruments are not included in the table above.
\nThe description of Aegon's methods of determining fair value and valuation techniques are described on the following pages.
\nWhen available, Aegon uses quoted market prices in active markets to determine the fair value of its investments in shares. For Level III unquoted shares,\u00a0the net asset value can be considered the best approximation to the fair value. Net asset value is the value of an entity's assets minus the value of its liabilities and may be the same as the book value or the equity value of the entity.\u00a0
Also, for unquoted shares, the fair value may be estimated using other methods, such as observations of the price/earnings or price/cash flow ratios of quoted companies considered comparable to the companies being valued. Valuations are adjusted to account for company-specific issues and the lack of liquidity inherent in an unquoted investment. Adjustments for lack of liquidity are generally based on available market evidence. In addition, a variety of other factors are reviewed by management, including, but not limited to, current operating performance, changes in market outlook and the third-party financing environment.\u00a0
Included in this category are shares in a Federal Home Loan Bank (FHLB) for an amount of EUR 77 million (2023: EUR\u00a082\u00a0million), which are reported as part of the line-item Net asset value. A FHLB has implicit financial support from the\u00a0United\u00a0States government. The redemption value of the shares is fixed at par and they can only be redeemed by\u00a0the\u00a0FHLB.
\nThe fair values of debt securities are determined by management after taking into consideration several sources of data. When available, Aegon uses quoted market prices in active markets to determine the fair value of its debt securities. As stated previously, Aegon\u2019s valuation policy utilizes a pricing hierarchy that dictates that publicly available prices are initially sought from indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes, the majority of which are non-binding. As part of the pricing process, Aegon assesses the appropriateness of each quote (i.e. as to whether the quote is based on observable market transactions or not) to determine the most appropriate estimate of fair value.
When broker quotes are not available, securities are priced using internal cash flow modeling techniques. These valuation methodologies commonly use the following inputs: reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, issue-specific credit adjustments, indicative quotes from market makers and/or estimated cash flows.
To understand the valuation methodologies used by third-party pricing services Aegon reviews and monitors the applicable methodology documents of the third-party pricing services. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, Aegon performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate that Aegon can corroborate detailed information such as assumptions, inputs, and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.
Third-party pricing services will often determine prices using recently reported trades for identical or similar securities. The\u00a0third-party pricing service makes adjustments for the elapsed time from the trade date to the reporting date to take into\u00a0account available market information. Lacking recently reported trades, third-party pricing services and brokers will use modeling techniques to determine a security price where expected future cash flows are developed based on the performance of the underlying collateral and discounted using an estimated market rate.
Periodically, Aegon performs an analysis of the inputs obtained from third-party pricing services and brokers to ensure that the inputs are reasonable and produce a reasonable estimate of fair value. Aegon\u2019s asset specialists and investment valuation specialists consider both qualitative and quantitative factors as part of this analysis. Several examples of analytical procedures performed include, but are not limited to, recent transactional activity for similar debt securities, review of pricing statistics and trends and consideration of recent relevant market events. Other controls and procedures over pricing received from indices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant price changes, stale prices, or unpriced securities. In addition, Aegon performs back testing on a sample basis. Back testing involves selecting a sample of securities trades and comparing the prices in those transactions to prices used for financial reporting. Significant variances between the price used for financial reporting and the transaction price are investigated to explain the cause of the difference.
Credit ratings are also an important consideration in the valuation of securities and are included in the internal process for determining Aegon\u2019s view of the risk associated with each security. However, Aegon does not rely solely on external credit ratings and there is an internal process, based on market observable inputs, for determining Aegon\u2019s view of the risks associated with each security.
Aegon\u2019s portfolio of private placement securities (held at fair value under the classification of fair value through OCI or fair value through profit or loss) is valued using a matrix pricing methodology. The pricing matrix is obtained from a third-party service provider and indicates current spreads for securities based on weighted average life, credit rating, and industry sector. Each month, Aegon\u2019s asset specialists review the matrix to ensure the spreads are reasonable by comparing them to observed spreads for similar bonds traded in the market. Other inputs to the valuation include coupon rate, the current interest rate curve used for discounting and a liquidity premium to account for the illiquid nature of these securities. The\u00a0liquidity premiums are determined based upon the pricing of recent transactions in the private placements market; comparing the value of the privately offered security to a similar public security. The impact of the liquidity premium for private placement securities to the overall valuation is insignificant.
Aegon's portfolio of debt securities can be subdivided into residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), asset-backed securities (ABS), corporate bonds and government debt. Relevant details of the valuation methodologies for these specific types of debt securities are described below.
\nValuations of RMBS, CMBS and ABS are monitored and reviewed on a monthly basis. Valuations per asset type are based on\u00a0a\u00a0pricing hierarchy, which uses a waterfall approach that starts with market prices from indices and follows with third-party pricing services or brokers. The pricing hierarchy is dependent on the possibilities of corroboration of the market prices. If\u00a0no\u00a0market prices are available, Aegon uses internal models to determine fair value. Significant inputs included in the internal models are generally determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles. Market standard models may be used to model the specific collateral composition and cash flow structure of each transaction. The most significant unobservable input is the liquidity premium which is embedded in\u00a0the discount\u00a0rate.\u200b\u200b\u200b\u200b
\nValuations of corporate bonds are monitored and reviewed on a monthly basis. The pricing hierarchy is dependent on the possibility of corroboration of market prices when available. If no market prices are available, valuations are determined by a discounted cash flow methodology using an internally calculated yield. The yield is comprised of a credit spread over a given benchmark. In all cases, the benchmark is an observable input. The credit spread contains both observable and unobservable inputs. Aegon starts by taking an observable credit spread from a similar bond of the given issuer, and then adjust this spread based on unobservable inputs. These unobservable inputs may include subordination, liquidity and maturity differences. During 2024, there were no corporate bonds that met the policy threshold to be internally modeled.
\nWhen available, Aegon uses quoted market prices in active markets to determine the fair value of its government debt investments. When Aegon cannot make use of quoted market prices, market prices from indices or quotes from third-party pricing services or brokers are used.
\nThe fair value of assets maturing within a year is assumed to be approximated by their carrying amount adjusted for credit risk where appropriate. Credit risk adjustments are based on market observable credit spreads if available, or management\u2019s estimate if not market observable.
\nThe Level III fair value of tax credit investments is determined by using a discounted cash flow valuation technique. This valuation technique takes into consideration projections of future capital contributions and distributions, as well as future tax credits and the tax benefits of future operating losses. The present value of these cash flows is calculated by applying a discount rate. In general, the discount rate is determined based on the cash outflows for the investments and the cash inflows from the tax credits and/or tax benefits (and the timing of these cash flows). These inputs are unobservable in the marketplace. The discount rate used in valuation of tax credit investments was 6.7% (December 31, 2023: 6.9%).
\nThe fair values of investments held in non-quoted investment funds are determined by management after taking into consideration information provided by the fund managers. Aegon reviews the valuations each month and performs analytical procedures and trending analyses to ensure the fair values are appropriate. The net asset value is considered the best valuation method that approximates the fair value of the funds.
\nFor private loans, fixed interest mortgage loans and other loans originated by the Group, the fair value used for disclosure purposes is estimated by discounting expected future cash flows using a current market rate applicable to financial instruments with similar yield and maturity characteristics. For fixed interest mortgage loans, the market rate is adjusted for expenses, prepayment rates, lapse assumptions (unobservable inputs), liquidity, and credit risk (market observable inputs). An\u00a0increase in expense spread, prepayment rates and/or prepayment assumptions, would decrease the fair value of the mortgage loan portfolio.
The fair value of floating interest rate mortgage loans, policy loans and private placements used for disclosure purposes is assumed to be approximated by their carrying amount, adjusted for changes in credit risk. Credit risk adjustments are based on market observable credit spreads if available, or management\u2019s estimate if not market observable.
\nWhere quoted market prices are not available, other valuation techniques, such as option pricing or stochastic modeling, are applied. The valuation techniques incorporate all factors that a typical market participant would consider and are based on observable market data when available. Models are validated before they are used and calibrated to ensure that outputs reflect actual experience and comparable market prices.
Fair values for exchange-traded derivatives, principally futures and certain options, are based on quoted market prices in active markets. Fair values for over-the-counter (OTC) derivative financial instruments represent amounts estimated to be received from or paid to a third party in the settlement of these instruments. These derivatives are valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other OTC trades, or external pricing services. Most valuations are derived from swap and volatility matrices, which are constructed for applicable indices and currencies using current market data from many industry-standard sources. Option pricing is based on industry standard valuation models and current market levels, where applicable. The pricing of complex or illiquid instruments is based on internal models or an independent third party. For long-dated illiquid contracts, extrapolation methods are applied to observed market data in order to estimate inputs and assumptions that are not directly observable. To value OTC derivatives, management uses observed market information, other trades in the market, and dealer prices.
Some OTC derivatives are so-called longevity derivatives. The payout of longevity derivatives is linked to publicly available mortality tables. The derivatives are measured using the present value of the best estimate of expected payouts of the derivative plus a risk margin. The best estimate of expected payouts is determined using best estimate of mortality developments. Aegon determined the risk margin by stressing the best estimate mortality developments to quantify the risk and applying a cost-of-capital methodology. Depending on the duration of the longevity swaps either the projected mortality development or discount rate are the most significant unobservable inputs.
Aegon normally mitigates counterparty credit risk in derivative contracts by entering into collateral agreements where practical and in ISDA master netting agreements for each of the Group\u2019s legal entities to facilitate Aegon\u2019s right to offset credit risk exposure. Changes in the fair value of derivatives attributable to changes in counterparty credit risk were not significant.
\nValuations of Level III investments in real estate and real estate held for own use are conducted in full by independent external appraisers at least every three to five years and reviewed at least once a year by qualified internal appraisers to ensure the value correctly reflects the fair value at the reporting date. Appraisals are different for each specific local market but are based on market guidelines such as International Valuation Standards, Uniform Standards of Professional Appraisal Practice, or guidelines issued by the Investment Property Databank. Valuations are mostly based on active market prices, adjusted for any difference in the nature, location or condition of the specific property. If such information is not available, other valuation methods are applied, considering the value that the property\u2019s net earning power will support, the value indicated by recent sales of comparable properties and the current cost of reproducing or replacing the property. Discount rates used in the valuation of real estate reflect the risk embedded in the projected cash flows for the asset being valued. Capitalization rates represent the income rate for a real estate property that reflects the relationship between a single year\u2019s net operating income expectancy and the total property price or value. For property held for own use, appraisers consider the present value of the future rental income cash flows that could be achieved had the real estate been rented to a third party.
\nTrust pass-through securities and subordinated borrowings are either carried at fair value (if they are designated as financial liabilities at fair value through profit or loss) or amortized cost (with fair value being disclosed in the notes to the consolidated financial statements). For the determination of the fair value of these instruments, the level hierarchy as described by IFRS is used. The preferred method of obtaining the fair value of the fair value option bonds is the quoted price (Level I). In cases were markets are less liquid or the quoted prices are not available, Aegon\u2019s valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from indices and third-party pricing services. The US trust pass-through securities and subordinated borrowings are classified as Level II of the fair value hierarchy.
\nInvestment contracts issued by Aegon are either carried at fair value (if they are designated as financial liabilities at fair value through profit or loss) or amortized cost (with fair value being disclosed in the notes to the consolidated financial statements). These contracts are not quoted in active markets and their fair values are determined by using valuation techniques, such as discounted cash flow methods and stochastic modeling or in relation to the unit price of the underlying assets. All models are validated and calibrated. A variety of factors are considered, including time value, volatility, policyholder behavior, servicing costs and fair values of similar instruments.
Certain investment products are not quoted in active markets and their fair values are determined by using valuation techniques. Because of the dynamic and complex nature of these cash flows, stochastic or similar techniques under a variety of market return scenarios are often used. A variety of factors are considered, including expected market rates of return, market volatility, correlations of market returns, discount rates and actuarial assumptions.
The expected returns are based on risk-free rates, such as the current Secured Overnight Financing Rate (SOFR) swap rates\u00a0and associated forward rates, the\u00a0Overnight Index Swap (OIS) curve or the current rates on local government bonds. Market volatility assumptions for each underlying index are based on observed market implied volatility data and/or observed market performance. Correlations of market returns for various underlying indices are based on observed market returns and their interrelationships over a number of years preceding the valuation date. Current risk-free spot rates are used to determine the present value of expected future cash flows produced in the stochastic projection process.
Assumptions on customer behavior, such as lapses, included in the models are derived in the same way as the assumptions used to measure insurance liabilities.
\nThe table that follows summarizes the carrying amounts of financial assets and financial liabilities that are classified as fair value through profit or loss, with appropriate distinction between those financial assets and financial liabilities held for trading and those that, upon initial recognition, were designated as fair value through profit or loss.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments where Aegon bears the risk | \n \n \n 7,661 | \n \n \n 2,356 | \n \n \n 9,386 | \n \n \n 2,526 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n - | \n \n \n 218,281 | \n \n \n - | \n \n \n 193,823 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 606 | \n \n \n - | \n \n \n 1,238 | \n \n \n - | \n
| \n \n Total financial assets at fair value through profit or loss | \n \n \n 8,267 | \n \n \n 220,637 | \n \n \n 10,625 | \n \n \n 196,349 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 79,078 | \n \n \n - | \n \n \n 65,044 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 1,331 | \n \n \n - | \n \n \n 1,466 | \n \n \n - | \n
| \n \n Total financial liabilities at fair value through profit or loss | \n \n \n 1,331 | \n \n \n 79,078 | \n \n \n 1,466 | \n \n \n 65,044 | \n
Aegon has certain insurance and investment liabilities that are carried at fair value with changes in the fair value recognized in the income statement. The Group has elected to designate the investments backing those liabilities at fair value through profit or loss, as a classification of fair value through OCI would result in accumulation of unrealized gains and losses in a revaluation reserve within equity while changes to the liability would be reflected in net result (accounting mismatch).
\nInvestments where the policyholder bears the risk comprise assets that are linked to various insurance and investment contracts for which the financial risks are borne by the customer. Under the Group\u2019s accounting policies these insurance and\u00a0investment liabilities are measured at the fair value of the linked assets with changes in the fair value recognized in the\u00a0income statement. To avoid an accounting mismatch the linked assets have been designated as fair value through profit or\u00a0loss.
In addition, investments where policyholders bear the risk include profit assets, whereby Aegon manages the assets together with related liabilities on a fair value basis in accordance with a documented policy of asset and liability management. In accordance with the Group\u2019s accounting policies, these assets have been designated as fair value through profit or loss.
\nWith the exception of the financial liabilities with discretionary participating features that are not subject to the classification and measurement requirements for financial instruments, all investment contracts without discretionary participating features where the policyholder bears the risk, are carried at fair value or at the fair value of the linked assets are included in the table above.
\nWith the exception of derivatives designated as a hedging instrument, all derivatives are included in the table above.
\nGains and losses recognized in the income statement on financial assets and financial liabilities classified as fair value through profit or loss can be summarized as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n \n \n Net gains and (losses) \n | \n \n \n \n \n (1,643) \n | \n \n \n 20,912 | \n \n \n \n \n (1,244) \n | \n \n \n 21,207 | \n
Changes in the fair value of investment contracts without discretionary participating features where the policyholders bear the risk that are designated at fair value through profit or loss were not attributable to changes in Aegon\u2019s credit spread. There\u00a0are also no differences between the carrying amounts of these financial liabilities and the contractual amounts payable at maturity (net of surrender penalties).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5709m3777p": { "value": "\nAegon's investments in unconsolidated structured entities such as RMBSs, CMBSs, and ABSs and investment funds are presented in the line item \"Investments\" of the statement of financial position. Aegon's interests in these unconsolidated structured entities can be characterized as basic interests, Aegon does not have loans, derivatives, guarantees, or other interests related to these investments. Any existing commitments such as future purchases of interests in investment funds are disclosed in note 39 Commitments and contingencies.
For debt instruments, specifically for RMBSs, CMBSs and ABSs, the maximum exposure to loss is equal to the carrying amount which is reflected in the credit risk concentration table regarding debt securities and money market investments. To\u00a0manage credit risk Aegon invests primarily in senior notes of\u00a0RMBSs, CMBSs and ABSs. The composition of the RMBSs, CMBSs and ABSs\u00a0portfolios of Aegon are widely dispersed looking at the individual amount per entity, therefore Aegon only\u00a0has non-controlling interests in individual unconsolidated structured entities. Furthermore, these investments are not originated by Aegon.
As collateral manager of CLOs issued in Europe, to the extent that it acts as an originator-manager, Aegon is subject to risk retention requirements to hold investments in the CLOs it manages. Such risk retention is often participation in the subordinated tranches of the structure which concentrates credit risk of the underlying assets of the CLO. Aegon\u2019s maximum exposure to credit risk is the carrying amount of these investments, which is EUR 192,775 million on December 31, 2024 (2023: EUR 167,411 million).
Except for commitments as noted in note 39 Commitments and contingencies,\u00a0Aegon did not provide, nor is required to provide financial or other support to unconsolidated structured entities. Nor does Aegon have intentions to provide financial or other support to unconsolidated structured entities in which Aegon has an interest or previously had an interest.
For RMBSs, CMBSs and ABSs\u00a0in which Aegon has an interest at reporting date, the following table presents the total income received from those interests. The Investments column reflects the carrying values recognized in the statement of financial position of Aegon's interests in RMBSs, CMBSs, and ABSs.
| \n | \n\n \n Total income for the year ended December 31, 2024 | \n \n \n December 31, 2024 | \n ||
| \n | \n\n \n Interest income | \n \n \n Total gains and losses on sale of assets | \n \n \n Total | \n \n \n Investments | \n
| \n \n Residential mortgage-backed securities | \n \n \n 58 | \n \n \n \n \n (13) \n | \n \n \n 45 | \n \n \n 684 | \n
| \n \n Commercial mortgage-backed securities | \n \n \n 97 | \n \n \n 98 | \n \n \n 194 | \n \n \n 2,582 | \n
| \n \n Asset-backed securities | \n \n \n 38 | \n \n \n 12 | \n \n \n 50 | \n \n \n 585 | \n
| \n \n ABSs - Other | \n \n \n 206 | \n \n \n 58 | \n \n \n 264 | \n \n \n 4,952 | \n
| \n \n Total | \n \n \n 399 | \n \n \n 155 | \n \n \n 554 | \n \n \n 8,802 | \n
| \n | \n\n \n Total income for the year ended December 31, 2023 | \n \n \n December 31, 2023 | \n ||
| \n | \n\n \n Interest income | \n \n \n Total gains and losses on sale of assets | \n \n \n Total | \n \n \n Investments | \n
| \n \n Residential mortgage-backed securities | \n \n \n 67 | \n \n \n \n \n (15) \n | \n \n \n 52 | \n \n \n 933 | \n
| \n \n Commercial mortgage-backed securities | \n \n \n 92 | \n \n \n 12 | \n \n \n 105 | \n \n \n 2,323 | \n
| \n \n Asset-backed securities | \n \n \n 40 | \n \n \n 14 | \n \n \n 54 | \n \n \n 560 | \n
| \n \n ABSs - Other | \n \n \n 134 | \n \n \n 57 | \n \n \n 191 | \n \n \n 3,037 | \n
| \n \n Total | \n \n \n 334 | \n \n \n 68 | \n \n \n 402 | \n \n \n 6,853 | \n
| \n | \n\n \n Joint ventures | \n \n \n Associates | \n ||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 1,430 | \n \n \n 1,430 | \n \n \n 2,906 | \n \n \n 165 | \n
| \n \n Additions | \n \n \n 1 | \n \n \n 49 | \n \n \n - | \n \n \n 2,765 | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (34) \n | \n \n \n \n \n (12) \n | \n
| \n \n Share in net income | \n \n \n 238 | \n \n \n 196 | \n \n \n 345 | \n \n \n 103 | \n
| \n \n \n \n Share in changes in equity (note 25.6) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (2) \n | \n \n \n 85 | \n \n \n \n \n (9) \n | \n
| \n \n Impairment losses | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (25) \n | \n
| \n \n Dividend | \n \n \n \n \n (141) \n | \n \n \n \n \n (211) \n | \n \n \n \n \n (199) \n | \n \n \n \n \n (81) \n | \n
| \n \n Net exchange difference | \n \n \n 1 | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n 19 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 1,503 | \n \n \n 1,430 | \n \n \n 3,122 | \n \n \n 2,906 | \n
In 2024, the disposal of associates includes Aegon's participation in the a.s.r. share buyback program, amounting to EUR\u00a029\u00a0million, to keep its stake in the company below 30%. Additionally, Aegon sold its stake in the associate in India, amounting to EUR 5 million (refer to note\u00a042 Companies and businesses acquired and divested). Other reflects fair value movements of associates held at fair value through profit or loss.
The joint ventures and associates are accounted for using the equity method and are considered to be non-current.\u00a0The\u00a0investments in joint ventures and associates include interest in insurance companies that are required to maintain a minimum solvency margin based on local directives. Such restrictions can affect the ability of these joint ventures and associates to\u00a0transfer funds in the form of cash dividends, or repayment of loans or advances, and therefore, there can be no assurance that\u00a0these restrictions will not become a limitation in the future. See note 39 Commitments and contingencies for any commitments and contingencies related to investments in joint ventures. There are no unrecognized shares of losses in joint ventures and associates. The financial statements of the principal joint ventures and associates have the same reporting date as the Group. See note\u00a043 Group companies for a listing of the investments in joint ventures and associates and the Group\u2019s percentage holding.
Joint ventures include our joint operation in China operating under the name Aegon THTF Life Insurance Co. Other than disclosed in note 29.3 Critical judgments and estimates, for the valuation of the insurance liabilities of our joint venture in\u00a0China the risk-free yield curve is based on government bond yields and is constructed using a market-observed curve up to\u00a0a\u00a0last liquid point (20 years) and then extrapolating in 20 years to an ultimate spot rate. The ultimate spot rate used for discounting liability cash flows aligns with local market practice in China and amounts to 4.2% on December 31, 2024 (2023: 4.5%) excluding an illiquidity premium (ILP) of 30 bps (2023: 45 bps) for the first 20 years and 20 bps thereafter (2023: 0).
\nThe summarized financial information presented in the following table presents the joint ventures on a 100% basis. Aegon\u00a0considers its investments in Santander Vida Seguros y Reaseguros S.A. (Santander Spain Life) and Aegon Industrial Fund Management Co.Ltd. (AIFMC) as\u00a0material joint ventures and are therefore presented separately.
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of financial position | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash and cash equivalents | \n \n \n 30 | \n \n \n 18 | \n \n \n 436 | \n \n \n 421 | \n \n \n 72 | \n \n \n 47 | \n
| \n \n Other current assets | \n \n \n 63 | \n \n \n 76 | \n \n \n 744 | \n \n \n 654 | \n \n \n 1,055 | \n \n \n 840 | \n
| \n \n Total current assets | \n \n \n 93 | \n \n \n 94 | \n \n \n 1,180 | \n \n \n 1,075 | \n \n \n 1,127 | \n \n \n 887 | \n
| \n \n Non-current assets | \n \n \n 1,023 | \n \n \n 1,056 | \n \n \n 194 | \n \n \n - | \n \n \n 7,429 | \n \n \n 6,234 | \n
| \n \n Total assets | \n \n \n 1,116 | \n \n \n 1,150 | \n \n \n 1,374 | \n \n \n 1,075 | \n \n \n 8,556 | \n \n \n 7,121 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Current financial liabilities excluding trade payables and other provisions | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Other current liabilities | \n \n \n 53 | \n \n \n 64 | \n \n \n 350 | \n \n \n \n \n (149) \n | \n \n \n 452 | \n \n \n 643 | \n
| \n \n Total current liabilities | \n \n \n 53 | \n \n \n 64 | \n \n \n 350 | \n \n \n \n \n (149) \n | \n \n \n 456 | \n \n \n 643 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Non-current financial liabilities excluding trade payables and other provisions | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n 64 | \n
| \n \n Other non-current liabilities | \n \n \n 406 | \n \n \n 403 | \n \n \n 38 | \n \n \n 414 | \n \n \n 6,874 | \n \n \n 5,257 | \n
| \n \n Total non-current financial liabilities | \n \n \n 406 | \n \n \n 403 | \n \n \n 38 | \n \n \n 414 | \n \n \n 6,941 | \n \n \n 5,321 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total liabilities | \n \n \n 459 | \n \n \n 467 | \n \n \n 388 | \n \n \n 265 | \n \n \n 7,397 | \n \n \n 5,964 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net assets | \n \n \n 657 | \n \n \n 683 | \n \n \n 985 | \n \n \n 810 | \n \n \n 1,159 | \n \n \n 1,157 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Summarized statement of comprehensive income | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revenue | \n \n \n 340 | \n \n \n 482 | \n \n \n 415 | \n \n \n 478 | \n \n \n 2,662 | \n \n \n 2,586 | \n
| \n \n Depreciation and amortization | \n \n \n \n \n (34) \n | \n \n \n \n \n (32) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (27) \n | \n
| \n \n Interest income | \n \n \n 6 | \n \n \n 4 | \n \n \n 18 | \n \n \n 10 | \n \n \n 128 | \n \n \n 117 | \n
| \n \n Interest expense | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n \n \n (10) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Profit or loss | \n \n \n 95 | \n \n \n 97 | \n \n \n 280 | \n \n \n 193 | \n \n \n 272 | \n \n \n 259 | \n
| \n \n Income tax (expense) or income | \n \n \n \n \n (21) \n | \n \n \n \n \n (24) \n | \n \n \n \n \n (78) \n | \n \n \n \n \n (53) \n | \n \n \n \n \n (80) \n | \n \n \n \n \n (88) \n | \n
| \n \n \n \n Post-tax profit or (loss) \n | \n \n \n 74 | \n \n \n 73 | \n \n \n 202 | \n \n \n 140 | \n \n \n 192 | \n \n \n 170 | \n
| \n \n Other comprehensive income | \n \n \n 4 | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n \n \n (134) \n | \n \n \n 32 | \n
| \n \n Total comprehensive income | \n \n \n 78 | \n \n \n 82 | \n \n \n 202 | \n \n \n 140 | \n \n \n 58 | \n \n \n 203 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 53 | \n \n \n 58 | \n \n \n 29 | \n \n \n 122 | \n \n \n 59 | \n \n \n 211 | \n
An overview of the summarized financial information of the carrying amount of the joint ventures is as follows:
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net assets of joint venture as presented above | \n \n \n 657 | \n \n \n 683 | \n \n \n 985 | \n \n \n 810 | \n \n \n 1,159 | \n \n \n 1,157 | \n
| \n \n Net assets of joint venture excluding goodwill | \n \n \n 577 | \n \n \n 603 | \n \n \n 985 | \n \n \n 809 | \n \n \n 1,040 | \n \n \n 1,030 | \n
| \n \n Group share of net assets of joint venture, excluding goodwill | \n \n \n 294 | \n \n \n 308 | \n \n \n 483 | \n \n \n 397 | \n \n \n 526 | \n \n \n 518 | \n
| \n \n Goodwill on acquisition | \n \n \n 80 | \n \n \n 80 | \n \n \n 1 | \n \n \n 1 | \n \n \n 120 | \n \n \n 128 | \n
| \n \n Carrying amount | \n \n \n 374 | \n \n \n 387 | \n \n \n 483 | \n \n \n 397 | \n \n \n 646 | \n \n \n 646 | \n
Aegon\u2019s group share of net assets of joint ventures, as presented in the table above, is less than Aegon\u2019s share of the net\u00a0assets as presented in the summarized financial information on a 100% basis, due to the inclusion of third parties in\u00a0the\u00a0joint\u00a0ventures.
The following table includes the summarized financial information of the joint ventures based on the Group\u2019s relative holding.
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Post-tax profit or loss | \n \n \n 38 | \n \n \n 37 | \n \n \n 99 | \n \n \n 69 | \n \n \n 101 | \n \n \n 90 | \n
| \n \n Other comprehensive income | \n \n \n 2 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n \n \n (67) \n | \n \n \n 17 | \n
| \n \n Total comprehensive income | \n \n \n 40 | \n \n \n 42 | \n \n \n 99 | \n \n \n 69 | \n \n \n 35 | \n \n \n 107 | \n
The following tables reflect the condensed statement of financial position and income statement of Aegon's material associate a.s.r. at 100%. a.s.r. is a listed company in the Netherlands in which Aegon holds a stake of 29.95% as per December\u00a031, 2024.\u00a0\u00a0The income statement includes the a.s.r. results for the period from July 4, 2023, to December 31, 2024.
| \n | \n\n \n a.s.r. | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of financial position | \n \n | \n\n | \n
| \n \n Investments | \n \n \n 80,484 | \n \n \n 92,177 | \n
| \n \n Derivatives | \n \n \n 11,767 | \n \n \n 12,907 | \n
| \n \n Other assets | \n \n \n 46,457 | \n \n \n 45,673 | \n
| \n \n Total assets | \n \n \n 138,709 | \n \n \n 150,758 | \n
| \n | \n\n | \n\n | \n
| \n \n Insurance liabilities | \n \n \n 102,723 | \n \n \n 99,475 | \n
| \n \n Borrowings and subordinated liabilities | \n \n \n 5,140 | \n \n \n 8,386 | \n
| \n \n Derivatives | \n \n \n 8,666 | \n \n \n 10,132 | \n
| \n \n Other liabilities | \n \n \n 12,293 | \n \n \n 23,467 | \n
| \n \n Total liabilities | \n \n \n 128,822 | \n \n \n 141,460 | \n
| \n \n Non-controlling interest | \n \n \n 47 | \n \n \n 35 | \n
| \n \n Other equity instruments | \n \n \n 977 | \n \n \n 974 | \n
| \n \n Total other equity components | \n \n \n 1,024 | \n \n \n 1,008 | \n
| \n \n Net assets | \n \n \n 8,863 | \n \n \n 8,289 | \n
| \n | \n\n \n a.s.r. | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of comprehensive income | \n \n | \n\n | \n
| \n \n Insurance revenues | \n \n \n 9,601 | \n \n \n 4,944 | \n
| \n \n Insurance service result | \n \n \n 772 | \n \n \n 274 | \n
| \n | \n\n | \n\n | \n
| \n \n Profit or loss from continuing operations | \n \n \n 1,418 | \n \n \n 450 | \n
| \n \n Income tax expense or income | \n \n \n \n \n (375) \n | \n \n \n \n \n (103) \n | \n
| \n \n Post-tax profit or loss from continuing operations | \n \n \n 1,043 | \n \n \n 347 | \n
| \n | \n\n | \n\n | \n
| \n \n Post-tax profit or loss from discontinued operations | \n \n \n 35 | \n \n \n - | \n
| \n \n Other comprehensive income - that may be recycled to profit or loss | \n \n \n - | \n \n \n 17 | \n
| \n \n Other comprehensive income - that will not be recycled to profit or loss | \n \n \n 283 | \n \n \n \n \n (58) \n | \n
| \n \n Total comprehensive income | \n \n \n 1,361 | \n \n \n 306 | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 188 | \n \n \n 68 | \n
| \n | \n\n | \n\n | \n
| \n \n Group share | \n \n \n 29.95% | \n \n \n 29.98% | \n
| \n \n Group share of post-tax profit or loss | \n \n \n 325 | \n \n \n 110 | \n
| \n \n Group share of other comprehensive income | \n \n \n 85 | \n \n \n \n \n (12) \n | \n
| \n | \n\n \n a.s.r. | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Net assets of a.s.r. as presented above | \n \n \n 8,863 | \n \n \n 8,289 | \n
| \n \n Net assets of a.s.r., excluding goodwill, fair value adjustments and other equity transactions | \n \n \n 8,827 | \n \n \n 8,180 | \n
| \n | \n\n | \n\n | \n
| \n \n Group share of net assets of a.s.r., excluding goodwill, fair value adjustments and other equity transactions | \n \n \n 2,644 | \n \n \n 2,453 | \n
| \n \n Fair value adjustments | \n \n \n 50 | \n \n \n 47 | \n
| \n \n Goodwill on acquisition | \n \n \n 117 | \n \n \n 117 | \n
| \n \n Carrying amount of investment in a.s.r. | \n \n \n 2,811 | \n \n \n 2,618 | \n
The fair value of the investment in a.s.r. has been determined based on the quoted price of the listed shares and the shares held on the reporting date.\u00a0The fair value of Aegon's stake in a.s.r. is EUR 2.864 million (2023: EUR 2.588 million).
The following table include associates that Aegon considered immaterial.
| \n | \n\n \n Other Associates | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of financial position | \n \n | \n\n | \n
| \n \n Current assets | \n \n \n 501 | \n \n \n 309 | \n
| \n \n Non-current assets | \n \n \n 732 | \n \n \n 725 | \n
| \n \n Total assets | \n \n \n 1,233 | \n \n \n 1,034 | \n
| \n | \n\n | \n\n | \n
| \n \n Current liabilities | \n \n \n 343 | \n \n \n 217 | \n
| \n \n Non-current liabilities | \n \n \n 25 | \n \n \n 17 | \n
| \n \n Total current liabilities | \n \n \n 369 | \n \n \n 235 | \n
| \n | \n\n | \n\n | \n
| \n \n Net assets | \n \n \n 864 | \n \n \n 799 | \n
| \n | \n\n | \n\n | \n
| \n \n Summarized statement of comprehensive income | \n \n | \n\n | \n
| \n \n \n \n Post-tax profit or (loss) \n | \n \n \n 147 | \n \n \n \n \n (7) \n | \n
| \n \n Other comprehensive income | \n \n \n - | \n \n \n 6 | \n
| \n \n Total comprehensive income | \n \n \n 147 | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 11 | \n \n \n 11 | \n
| \n | \n\n | \n\n | \n
| \n \n Carrying amount | \n \n \n 311 | \n \n \n 288 | \n
On February 23, 2024, Aegon completed the divestment of the business - sale of its 56% stake in its associate - in India to\u00a0lower the exposure to businesses outside of Aegon\u2019s core focus that has been largely eliminated over recent years.\u00a0 The\u00a0divestment did not have a material\u00a0impact on Aegon\u2019s capital position or results.
On July 1, 2024, the Part VII transfer of the individual protection policies relating to the sale of Aegon's UK protection book to Royal London (announced in April 2023) was completed.
\nOn April 4, 2023, Aegon announced the sale of its UK individual protection book to Royal London. Under the terms of the\u00a0agreement, Aegon UK will initially reinsure the portfolio to Royal London, followed by a Part VII transfer of the legal ownership of the individual protection book in 2024. The transfer is subject to court approval. Aegon UK\u2019s individual protection business is a portfolio of life, critical illness, and income protection policies for 400,000 high-net-worth individual customers, which was sold via independent financial advisers. The portfolio closed to new business on April 4, 2023. The sale does not have a\u00a0material impact on Aegon\u2019s capital position or results.
On June 1, 2023 Aegon announced the completion of the divestment of its businesses in Poland and Romania to Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) for EUR 125 million. The book loss on the transaction is EUR 78 million and is recorded in Aegon\u2019s 2023 results. This was the final step to complete the full sale of Aegon\u2019s insurance, pension, and asset management business in Central and Eastern Europe to VIG, following the closings of the divestments of the Hungarian and Turkish businesses in 2022.
On July 4, 2023, Aegon announced the completion of the combination of its Dutch pension, life and non-life\u00a0insurance, banking, and mortgage origination activities with a.s.r., and the beginning of its asset management\u00a0partnership with a.s.r. As part of the transaction, Aegon received EUR 2.2 billion cash proceeds and almost a 30% stake in a.s.r.
On July 21, 2023, Aegon announced the sale of its 56% stake in its associate in India, Aegon Life Insurance\u00a0Company, to\u00a0Bandhan Financial Holdings Limited, an Indian financial services company. The completion of the\u00a0proposed transaction is\u00a0subject to customary regulatory approvals which have been received in 2023.
\nOn March 23, 2022, and on April 21, 2022, Aegon completed the divestment of its Hungarian and Turkish businesses to\u00a0VIG.\u00a0The book gain amounted to EUR 288 million, which includes a loss of EUR 177 million related to the recycling of the foreign currency translation reserve and revaluation reserve\u00a0through the income statement. As a result of this transaction, IFRS equity has increased by EUR 465 million. The completion of this sale is part of the full closing of the sale of Aegon\u2019s insurance, pension, and asset management businesses in Central and Eastern Europe\u00a0to VIG for EUR 830 million, as\u00a0announced in November 2020. The sale of Aegon Poland and Aegon Romania was completed on June 1, 2023.
On October 14, 2022, Aegon completed the divestment of its 50% stake in the Spanish insurance joint venture with Liberbank to Unicaja Banco. As announced on May 23, 2022, the sale follows the change of control in Liberbank after its merger with Unicaja\u00a0Banco in 2021. The net proceeds of the transaction amount to EUR 176 million. The book gain on the transaction is EUR 87 million and is recorded in Aegon\u2019s 2022 results.\u00a0
\nThe principal subsidiaries of the parent company Aegon Ltd. are listed by geographical segment. All are wholly owned, directly or indirectly, unless stated otherwise, and are involved in insurance or reinsurance business, pensions, asset management or services related to these activities. The voting power in these subsidiaries held by Aegon is equal to the shareholdings.
\nTransamerica Casualty Insurance Company, Cedar Rapids, Iowa (United States)
Transamerica Corporation, Wilmington, Delaware (United States)
Transamerica Financial Life Insurance Company, Harrison, New York (United States)
Transamerica Life Insurance Company, Cedar Rapids, Iowa (United States)
World Financial Group Insurance Agency, LLC, Cedar Rapids, Iowa (United States)
Aegon Investment Solutions Ltd., Edinburgh
Aegon Investments Ltd., London\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Cofunds Limited, London
Scottish Equitable plc, Edinburgh
Origen Financial Services Limited, Farnborough
Aegon Espa\u00f1a S.A.U. de Seguros y Reaseguros, Madrid (Spain)
Transamerica Life (Bermuda) Ltd., Hamilton (Bermuda)
Aegon Asset Management Holding B.V., The Hague (The Netherlands)
Aegon Asset Management UK plc, Edinburgh (United Kingdom)
Aegon Investment Management B.V., The Hague (The Netherlands)
Aegon USA Investment Management, LLC, Cedar Rapids (United States)
Aegon USA Realty Advisors, LLC, Des Moines (United States)
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 Ltd. has issued a statement of liability as meant in Article 403 of\u00a0Book\u00a02 of the Dutch Civil Code for its subsidiary company Aegon Derivatives N.V.
\nThe principal joint ventures are listed by geographical segment. The voting powers in these joint ventures is equal to\u00a0the\u00a0shareholdings, unless stated otherwise.
\nSantander Generales Seguros y Reaseguros, S.A., Madrid (Spain)\u00a0(51%)
Santander Vida Seguros y Reaseguros, S.A., Madrid (Spain)\u00a0(51%)\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Aegon Santander Portugal N\u00e3o Vida \u2013 Companhia de Seguros S.A., Lisbon (Portugal)\u00a0(51%)
Aegon Santander Portugal Vida \u2013 Companhia de Seguros de Vida S.A., Lisbon (Portugal)\u00a0(51%)
Aegon THTF Life Insurance Co., Ltd., Shanghai (China) (50%)
Mongeral Aegon, Seguros e Previdencia S.A., Rio de Janeiro (Brazil)\u00a0(59.2%, where Aegon has 50% voting rights)\u200b\u200b\u200b\u200b
Sicoob Seguradode de Vida e Previd\u00eancia S.A., Rio de Janeiro (Brazil) (29.6%)
Aegon Industrial Fund Management Co., Ltd., Shanghai (China)\u00a0(49%)
See note 21 Investments in joint ventures and associates for further details on these investments.
\nThe principal investments in associates are listed by geographical segment.\u00a0The voting powers in these associates is equal to the shareholdings, unless stated otherwise.
\nASR Nederland N.V., Utrecht (29.95%)
Pursuant to the relationship agreement entered into with a.s.r. for a period of five years post closing (July 1, 2023), Aegon has an exclusive right to nominate up to two members of the Supervisory Board (if Aegon holds more than 20% of the shares it may nominate two members of which one qualifies as Independent Nominee and the other as Non-independent Nominee; if it holds 20% or less but more than 10% of the shares it may nominate one member who qualifies as Non-independent Nominee). In addition, Aegon has the\u00a0right to designate its nominees for the Audit and Risk Committee and the ESG Committee if certain conditions are met. Furthermore, in the event that the incumbent CEO of a.s.r. does not serve the full term due to earlier resignation or dismissal, the\u00a0appointment of the successor requires the unanimous vote of all Supervisory Directors in office.
For as long as Aegon holds more than 20% of the shares, the affirmative vote of the non-independent Aegon nominee is\u00a0required for:
significant changes to dividend policy (as per current stated a.s.r. policies);
certain dilutive transactions (issuance of equity or debt instruments); and
M&A transactions (acquisitions and divestments, joint ventures, and long-term co-operations) with a value exceeding
EUR\u00a0500\u00a0million.
Furthermore, for as long as Aegon holds more than 20% of the shares, the below needs the unanimous vote of all Supervisory Directors in office and the affirmative vote of the non-independent Aegon nominee:
material decisions on capital management, material reinsurance, and capital allocation / distribution, in each case to the extent this would result in a material change to the characteristics of the risk profile of (the enterprise of) a.s.r. and other than in the ordinary course of business.
Except for significant changes to the dividend policy, the same applies when Aegon holds 20% or less but more than 10% of\u00a0the shares.\u00a0If Aegon holds less than 10%, the relationship agreement from which the abovementioned rights derive is automatically terminated.\u00a0
\nLa Banque Postale Asset Management, Paris (France)\u00a0(25%)
See note\u00a021 Investments in joint ventures and associates for further details on these investments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1581m1474p": { "value": "\nThe estimation of credit exposure for risk management purposes is complex and requires the use of models, as the exposure varies with changes in market conditions, expected cash flows and the passage of time. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring, of the associated loss ratios and of default correlations between counterparties. Aegon measures credit risk using Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). This is similar to the approach used for the purposes of measuring the Expected Credit Loss (ECL) under IFRS 9. See section on ECL developments in the reporting period later in this note for more details.
Losses as a result of credit risk are a natural part of investing in fixed-income securities. The amount of and compensation for\u00a0this risk are related. A significant management measure to avoid excessive credit risk is to diversify and limit exposure to\u00a0individual issuers.
\nIFRS 9 outlines a \"three-stage\" model for impairment based on relative changes in credit quality since initial recognition:
A financial instrument that is not credit-impaired on initial recognition is classified in \"Stage 1\";
If a significant increase in credit risk (\"SICR\") since initial recognition is identified, the financial instrument is moved to \"Stage\u00a02\" but is not yet deemed to be credit-impaired (see \u201cSignificant increase in credit risk\u201d for further details);
If the financial instrument is credit-impaired, the financial instrument is then moved to \"Stage 3.\"
Credit risk is continuously monitored by Aegon in all the above stages.
Financial instruments in Stage 1 have their expected credit loss (ECL) measured at an amount equal to the portion of lifetime expected credit losses that result from default events possible within the follow 12 months. Financial instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit-impaired on initial recognition. Their ECL is always measured on a\u00a0lifetime basis.\u00a0
| \n | \n\n \n Stage 1 Impaired | \n \n \n Stage 2 Under-performing | \n \n \n Stage 3 Non-performing | \n \n \n \n \n Purchased or Originated Credit Impaired (POCI) \n | \n
| \n \n ECL | \n \n \n 12 month ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n \n \n Lifetime ECL | \n
| \n \n Provision Trigger | \n \n \n n.a. | \n \n \n Quantitative and Qualitative Triggers | \n \n \n Qualitative Triggers | \n \n \n Qualitative Triggers | \n
| \n \n Days Past Due (\"DPD\") Backstop | \n \n \n \n \n Up to date and early arrears (< 30 DPD) \n | \n \n \n \n \n > 30 DPD (rebuttable presumption) \n | \n \n \n \n \n > 90 DPD (rebuttable presumption) \n | \n \n \n n.a. | \n
| \n \n Interest Income | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on gross carrying amount | \n \n \n Interest calculated on net carrying amount | \n \n \n Interest calculated on net carrying amount using a credit-adjusted effective interest rate | \n
Following this assessment, IFRS 9 requires the incorporation of multiple, forward looking macro- scenarios to drive the ECL provision.
IFRS 9 requires that the measurement of ECL represent an unbiased probability-weighted amount that is to be determined by:
Evaluating a range of possible outcomes;\u00a0
Use reasonable and supportable information available without undue cost and effort about past events;
Current conditions; and\u00a0
Forecasts of future economic conditions.
When incorporating forward looking information, consideration should be given to the relevance of the information (and\u00a0the\u00a0availability of more relevant information) for each specific financial instrument or group of financial instruments. To\u00a0the extent relevant, forward-looking information used for the measurement of ECLs it needs to be consistent with that used\u00a0for\u00a0the\u00a0assessment of a significant increase in credit risk.
Credit losses are calculated as the product of projected probability of default, loss given default and exposure at default and are discounted using an appropriate discount rate. The ECL is determined as the probability weighted discounted credit losses that are determined for different scenarios (i.e. base, positive, adverse).\u00a0
Given the need to adapt the models to the different portfolio characteristics, all ECL models have different key judgments and assumptions. As such, the below paragraphs outline the key judgements and assumptions made by the Group in addressing the key requirements on a model-by-model basis.
The Group employs different models to calculate the ECL on different asset classes.
For bonds and private placements, the Group applies a global correlation model. It provides correlations of credit quality movements across different asset classes, linked with movements in the macro economy. A global correlation model is therefore used for determining the conditional PD and LGD, given a macroeconomic scenario. Unconditional PD and LGD curves are modelled with use of different methods for sovereign debt, corporate bonds and private placements.\u00a0
For commercial mortgage loans and mortgage-backed securities, the parameters are estimated with commercial mortgage metrics that use corporate bond PD and LGD estimates further adjusted with other assumptions based on debt service coverage and loan-to-value ratios.\u00a0
The Group applies a separate model for asset-backed securities, which pools the instruments based on the underlying collateral and estimates credit loss parameters collectively. Collateralized debt (loan) obligations (CDOs and CLOs) are special types of asset-backed securities to which a different set of models are applied depending on the region of the exposure.
\nAegon considers a financial instrument to have experienced a significant increase in credit risk when one or more of the following quantitative, qualitative or backstop criteria have been met:
| \n \n Asset class | \n \n \n Quantitative criteria | \n \n \n Qualitative criteria | \n \n \n Backstop criteria | \n
| \n \n Commercial mortgages | \n \n \n Relative change in Forward-in-Time Probability of Default | \n \n \n None | \n \n \n 60 days past due backstop | \n
| \n \n Private loans | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Debt securities | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Structured finance | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n 30 days past due backstop | \n
| \n \n Deposits with financial institutions | \n \n \n Relative changes in rating | \n \n \n Watchlist approach | \n \n \n No other backstop applied | \n
| \n \n Loan commitments | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n | \n\n | \n
| \n \n Financial guarantees | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n | \n\n | \n
The quantitative factor(s) should indicate whether the credit risk of an instrument has increased significantly since initial recognition. When making this assessment, Aegon shall use the change in the risk of a default occurring over the expected life\u00a0of the financial instrument. Aegon uses a mix of relative and absolute thresholds:
The relative threshold measures the relative increase in credit risk since origination.\u00a0
The absolute threshold defines a stage for each rating and is mainly used when the rating at origination is not available or when an instrument is already in default.
The relative thresholds are defined in two steps:
A PD-based statistical analysis is performed to determine an optimal PD threshold that provides the best predictor for\u00a0default;
The PD-based thresholds are translated into rating-based rules, which are more intuitive and practically applicable.
These PD thresholds can be translated into rating-based thresholds using standard Moody\u2019s rating to PD mappings. The\u00a0difference between the PD at origination and the PD corresponding to the threshold determines the number of notches that the rating must drop by. For example, for a one-year-old instrument with a one year remaining maturity this gives the following result:\u00a0
\n\nPD amounts used by Aegon are grouped into ranges in below table. Each range contains the minimum and maximum of PDs on both financial and corporate assets of a 1-10 year term. As Aegon US represents the Group the best, PD amounts of Americas is presented below.
| \n \n PD range 2024 | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0001 | \n \n \n 0.0021 | \n
| \n \n AA | \n \n \n 0.0002 | \n \n \n 0.0034 | \n
| \n \n A | \n \n \n 0.0006 | \n \n \n 0.0052 | \n
| \n \n BBB | \n \n \n 0.0017 | \n \n \n 0.0079 | \n
| \n \n BB | \n \n \n 0.0048 | \n \n \n 0.0131 | \n
| \n \n B | \n \n \n 0.0120 | \n \n \n 0.0307 | \n
| \n \n CCC or lower | \n \n \n 0.0196 | \n \n \n 1.0000 | \n
| \n \n PD range 2023 | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0002 | \n \n \n 0.0024 | \n
| \n \n AA | \n \n \n 0.0003 | \n \n \n 0.0037 | \n
| \n \n A | \n \n \n 0.0007 | \n \n \n 0.0057 | \n
| \n \n BBB | \n \n \n 0.0020 | \n \n \n 0.0085 | \n
| \n \n BB | \n \n \n 0.0055 | \n \n \n 0.0085 | \n
| \n \n B | \n \n \n 0.0138 | \n \n \n 0.0308 | \n
| \n \n CCC or lower | \n \n \n 0.0205 | \n \n \n 1.0000 | \n
For debt securities, private loans, structured finance securities and deposits with financial institutions the relative change of the credit rating is used as primary indicator to assess significant increase in credit risk, for this purpose external credit ratings are used.\u00a0
\nFor debt securities, private loans, structured finance securities and deposits with financial institutions the watchlist approach is applied as an additional qualitative criterion.\u00a0 The watchlist approach means exposure of instruments on the watchlist are intensively monitored. Financial assets are added to the watchlist based on whether their relative change in fair value has surpassed a predetermined threshold:
The fair value either drops to 80% and below the (amortized) cost price and stays there for six months; or
The fair value falls by 20% over 3 months; or
The fair value falls to 60% and below the (amortized) cost price.
In relation to debt securities and private loans, where a watchlist is used to monitor credit risk, this assessment is performed at the counterparty level and on a periodic basis. The criteria used to identify SICR are monitored and reviewed periodically for\u00a0appropriateness by the Group.
\nA backstop is applied to exposures considered to have experienced a significant increase in credit risk if the borrower is more than 30 days past due on its contractual payments in the case of structured finance, and 60 days in the case of commercial mortgage loans. No backstop is applied to the other asset classes.\u00a0
Aegon has used the low credit risk exemption for debt instruments. Debt instruments that have a credit rating that is responds with \"investment grade\" (rating \"BBB\" or higher) are considered as having low credit risk. As such, external and internal credit ratings are used respectively for these assets to assess whether a significant increase in credit risk has occurred.
Low credit risk exemption is applied for staging purposes on instruments rated BBB and higher.
\nFor loan commitments and financial guarantees, Aegon defines default in the same way as for the respective loan or financial instrument to which a commitment relates or a guarantee is issued (considering the factors described above).
\nAegon assesses a financial instrument to be in default or credit-impaired using the following criteria:
| \n \n Asset class | \n \n \n Quantitative criteria | \n \n \n Qualitative criteria | \n
| \n \n Commercial mortgages | \n \n \n 90 days past due backstop | \n \n \n Foreclosure | \n
| \n | \n\n | \n\n \n Sale at material credit-related economic loss | \n
| \n \n Debt securities and private loans | \n \n \n 5 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Breach of significant covenants without reasonably supportable waiver obtained | \n
| \n | \n\n | \n\n \n Distressed restructuring taking place | \n
| \n | \n\n | \n\n \n Bankruptcy or an equivalent of an injunction for the obligor was filed | \n
| \n | \n\n | \n\n \n Obligor was classified as default internally | \n
| \n \n Deposits with financial institution | \n \n \n 5 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Breach of significant covenants without reasonably supportable waiver obtained | \n
| \n | \n\n | \n\n \n Distressed restructuring taking place | \n
| \n | \n\n | \n\n \n Bankruptcy or an equivalent of an injunction for the obligor was filed | \n
| \n | \n\n | \n\n \n Obligor was classified as default internally | \n
| \n \n Structured securities | \n \n \n 90 days past due backstop | \n \n \n \n \n Rating falling to \"D\" (external or internal) \n | \n
| \n | \n\n | \n\n \n Loss coverage ratio (Ratio of credit-related losses to the par value of a debt security) is below 1 | \n
| \n \n Receivables | \n \n \n 90 days past due backstop | \n \n | \n
| \n \n Loan commitments | \n \n \n Defined as for the respective loans to which the commitment relates | \n \n \n Defined as for the respective loans to which the commitment relates | \n
| \n \n Financial guarantee contracts | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n
Distressed restructuring means material forgiveness, or postponements of principal, interest, or where relevant, fees which is likely to result in a diminished financial obligation.\u00a0
In addition to the criteria included in the table above, Aegon identifies other indicators of unlikeliness to pay, which include but are not limited to the following:
A borrower\u2019s sources of recurring income are no longer available to meet the payments of installments;
There are justified concerns about a borrower\u2019s future ability to generate stable and sufficient cash flows;
The borrower\u2019s overall leverage level has significantly increased beyond applicable limits or there are justified expectations\u00a0of such changes to leverage;
For the exposures to an individual: default of a company fully owned by a single individual where this individual provided the\u00a0institution with a personal guarantee for all obligations of a company;
Material fraud; or
Death of a client.
All the criteria above have been applied to the financial instruments held by Aegon and are consistent with the definition of default used for internal credit risk management purposes. The definition of default has been applied consistently to model the Probability of Default, Exposure at Default throughout Aegon\u2019s expected loss calculations.
An instrument is considered to no longer be in default (i.e. to have \"cured\") when it no longer meets any of the default criteria for a consecutive period of six\u00a0months and an assessment has shown the obligor is no longer unlikely to pay. This period of six months considers the likelihood of a financial instrument returning to default status after cure using different possible cure definitions.
\nThe ECL is measured on either a \"12-month basis\" (Stage 1) or \"lifetime basis\" (Stages 2 and 3), depending on whether a\u00a0significant increase in credit risk has occurred since initial recognition or whether an asset is considered to be credit-impaired.\u00a0
The expected credit losses are the discounted product of the Probability of Default, Exposure at Default, and Loss\u00a0Given\u00a0Default, defined as follows:
The PD represents the likelihood of a borrower defaulting on its financial obligation (as per \u201cDefinition of default and credit-impaired\u201d above), either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.\u00a0
EAD is based on the amounts the Group expects to be owed at the time of default.\u00a0
Loss Given Default represents Aegon\u2019s expectation of the extent of loss on a defaulted exposure. LGD varies by\u00a0type\u00a0of\u00a0counterparty, type and seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at the time of default.
The discount rate used in the ECL calculation is the original effective interest rate or an approximation thereof. The lifetime PD is calculated for a financial instrument that results in default by summing the probabilities of all future developments which end-up in the ECL. All possible future developments are enumerated and for each future development a probability is calculated by statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.\u00a0
Forward-looking economic information is included in determining the 12-month and lifetime ECL, and lifetime PD by using a\u00a0set\u00a0of\u00a0variables describing the state of the macro economy as input in the calculation of the probability of default and prepayment.
As described above, and subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the Group measures ECL considering the risk of default over the maximum contractual period (including any borrower\u2019s extension options) over which Aegon is exposed to credit risk, even if the Group considers a\u00a0longer\u00a0period.\u00a0
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of significant increase in credit risk (SICR) and the calculation of ECL both incorporate forward-looking information. Aegon has performed historical analysis and identified the key economic variables impacting credit risk and expected credit losses for each portfolio.\u00a0
These economic variables and their associated impact on the ECL and Lifetime PD vary by financial instrument. Expert judgment has also been applied in this process. Forecasts of these economic variables (the \u201cbase economic scenario\u201d) give\u00a0the best estimate view of the economy over the next five years. After five years, to project the economic variables out for the\u00a0full remaining lifetime of each instrument, a mean reversion approach has been used, which means that economic variables tend to either a long run average rate (e.g. for unemployment) or a long run average growth rate (e.g. GDP) over a period of three years. Statistical regression analysis has been performed to understand the impact changes in these macro-economic variables have had historically on default and prepayment rates.
Using the base scenario as a starting point, three macro-economic scenarios are generated by applying shocks to the macro-economic variables in a positive and negative direction, taking into account their correlation as historically observed, resulting in a positive, neutral, or negative scenario. The shocks applied correspond to the historical average deviance from the long-term mean observed in the best/worst 10% of the historically observed quarters. The ECL is calculated for each of the three scenarios, multiplied by the scenario weighting, and summed. The use of multiple economic scenarios ensures that the ECL represents the best estimate of expected credit loss and is not merely the credit loss in the most likely scenario.
As with any economic forecasts, the projections and likelihoods of occurrence are subject to a high degree of inherent uncertainty, and therefore, the actual outcomes may be significantly different to those projected. The Group considers these\u00a0forecasts to represent its best estimate of the possible outcomes.
\nThe most significant period-end assumptions used for the ECL estimate are set out below. The scenarios \u201cbase\u201d, \u201cupside\u201d, and\u00a0\u201cdownside\u201d were used for all portfolios.
| \n \n Economic variable assumptions, December 31, 2024 | \n \n | \n\n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.33 | \n \n \n 4.26 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.43 | \n \n \n 4.35 | \n \n \n 4.24 | \n \n \n 4.18 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 3.17 | \n \n \n 3.74 | \n \n \n 3.94 | \n \n \n 4.04 | \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.08 | \n \n \n 4.09 | \n \n \n 4.05 | \n \n \n 4.01 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.13 | \n \n \n 3.44 | \n \n \n 3.42 | \n \n \n 3.42 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.23 | \n \n \n 7.46 | \n \n \n 6.18 | \n \n \n 5.00 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 419.04 | \n \n \n 424.10 | \n \n \n 434.08 | \n \n \n 448.91 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 439.72 | \n \n \n 456.26 | \n \n \n 471.39 | \n \n \n 489.21 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 354.16 | \n \n \n 369.92 | \n \n \n 385.26 | \n \n \n 401.39 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 23,973.45 | \n \n \n 24,343.12 | \n \n \n 24,819.66 | \n \n \n 25,356.09 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,319.86 | \n \n \n 24,807.47 | \n \n \n 25,341.29 | \n \n \n 25,943.15 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,959.57 | \n \n \n 23,369.09 | \n \n \n 24,147.35 | \n \n \n 24,980.66 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 5,912.89 | \n \n \n 5,814.62 | \n \n \n 6,098.72 | \n \n \n 6,483.85 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,264.59 | \n \n \n 6,132.21 | \n \n \n 6,356.19 | \n \n \n 6,630.75 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 3,867.82 | \n \n \n 4,095.95 | \n \n \n 4,899.05 | \n \n \n 5,712.91 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions, December 31, 2023 | \n \n | \n\n \n 2024 | \n \n \n 2025 | \n \n \n 2026 | \n \n \n 2027 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.11 | \n \n \n 4.04 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Upside | \n \n \n 4.21 | \n \n \n 4.13 | \n \n \n 4.02 | \n \n \n 4.03 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Interest rates | \n \n \n Downside | \n \n \n 2.31 | \n \n \n 3.24 | \n \n \n 3.71 | \n \n \n 3.89 | \n \n \n \n \n Interest Rates: 10-Year Treasury Constant Maturities, (% p.a., NSA1) \n | \n
| \n \n Unemployment rate | \n \n \n Base | \n \n \n 4.03 | \n \n \n 4.06 | \n \n \n 3.97 | \n \n \n 3.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.08 | \n \n \n 3.41 | \n \n \n 3.34 | \n \n \n 3.35 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 7.56 | \n \n \n 6.90 | \n \n \n 5.70 | \n \n \n 4.88 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 400.12 | \n \n \n 393.70 | \n \n \n 394.21 | \n \n \n 403.50 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Upside | \n \n \n 419.87 | \n \n \n 423.62 | \n \n \n 428.16 | \n \n \n 439.72 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n House Price Index | \n \n \n Downside | \n \n \n 339.91 | \n \n \n 347.29 | \n \n \n 352.66 | \n \n \n 363.59 | \n \n \n \n \n Existing Single-Family Home Price: Median, (Ths. USD, SA) \n | \n
| \n \n Domestic GDP | \n \n \n Base | \n \n \n 22,900.95 | \n \n \n 23,303.78 | \n \n \n 23,825.37 | \n \n \n 24,397.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 23,354.42 | \n \n \n 23,883.09 | \n \n \n 24,451.63 | \n \n \n 25,020.82 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 22,039.64 | \n \n \n 22,368.94 | \n \n \n 23,099.22 | \n \n \n 23,768.80 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 4,672.66 | \n \n \n 4,796.24 | \n \n \n 5,043.19 | \n \n \n 5,368.63 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 4,950.59 | \n \n \n 5,058.20 | \n \n \n 5,256.09 | \n \n \n 5,490.26 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 2,904.90 | \n \n \n 3,226.25 | \n \n \n 3,942.26 | \n \n \n 4,603.90 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
The weightings assigned to each economic scenario were as follows:
| \n \n Weightings | \n \n \n Base | \n \n \n Upside | \n \n \n Downside | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2023 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking considerations not otherwise incorporated within the above scenarios, such as the impact of any regulatory, legislative or political changes, have also been considered, but are not deemed to have a material impact, and therefore, no adjustment has been made to the ECL for such factors. This process is reviewed and monitored for appropriateness on a quarterly basis.
\nThe Group writes-off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity; and (ii) where Aegon\u2019s recovery method is foreclosing on collateral and the\u00a0value of\u00a0the collateral is such that there is no reasonable expectation of recovering in full.\u00a0
The Group may write-off financial assets that are still subject to enforcement activity. The outstanding contractual amounts of\u00a0such assets written-off during 2024 is not material. The Group still seeks to recover amounts it is legally owed in full, but which have been partially written off due to no reasonable expectation of full recovery.
\nThe Group has the option to modify the terms of loans provided to customers due to commercial renegotiations, or for distressed loans, with a view to maximizing recovery. \u00a0Such restructuring activities include extended payment term and penalty interest arrangements. Restructuring policies and practices are based on indicators or criteria which, in the judgment of management, indicate that payment will most likely continue. These policies are kept under continuous review.
The risk of default of such assets after modification is assessed at the reporting date and compared with the risk under the\u00a0original terms at initial recognition, when the modification is not substantial and so does not result in derecognition of the\u00a0original asset. The Group monitors the subsequent performance of modified assets. Aegon may determine that the credit risk has significantly improved after restructuring, so that the assets are moved from Stage 3 or Stage 2 (Lifetime ECL) to Stage\u00a01 (12-month ECL) (see note 4.2.6\u00a0 Expected credit losses (a) for details of the Group ECL staging classification). This\u00a0is\u00a0only the case for assets that have performed in accordance with the new terms for three consecutive months or more. The gross carrying amount of such assets held on December 31 2024 was EUR 0 million (2023: EUR 0 million).
\nAegon regularly monitors industry sectors and individual debt securities for sources of changes in the ECL allowance. These\u00a0sources may include one or more of the following:\u00a0
Transfers between Stages 1, 2 and 3 due to financial instruments experiencing significant increases (or decreases) of\u00a0credit\u00a0risk or becoming credit-impaired in the period, and the consequent \u201cstep up\u201d (or \u201cstep down\u201d) between 12-month and\u00a0lifetime\u00a0ECL;\u00a0
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments de-recognized in the period;\u00a0
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of\u00a0inputs to models;\u00a0
Impacts on the measurement of ECL due to changes made to models and assumptions;\u00a0
Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;\u00a0
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and,
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during\u00a0the period.
In addition, for asset-backed securities, cash flow trends and underlying levels of collateral are monitored. Furthermore, quality ratings of investment portfolios are based on a composite of the main rating agencies (S&P, Moody\u2019s, and Fitch) and Aegon\u2019s internal rating of the counterparty. The following tables explain the changes in the loss allowance changes between the beginning and the end of the annual period due to these factors:
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Loss allowance on January 1 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n 4 | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n 1 | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n \n \n (5) \n | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n Impact on year-end ECL of exposures transferred between stages during the year | \n \n \n 2 | \n \n \n \n \n (7) \n | \n \n \n \n \n (50) \n | \n \n \n - | \n \n \n \n \n (54) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 18 | \n \n \n 3 | \n \n \n 35 | \n \n \n - | \n \n \n 56 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (38) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (42) \n | \n
| \n \n Change in models | \n \n \n \n \n (12) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (45) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (11) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (20) \n | \n
| \n \n Loss allowance on December 31 | \n \n \n \n \n (187) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Loss allowance on January 1 | \n \n \n \n \n (156) \n | \n \n \n \n \n (32) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (276) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n 2 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n 2 | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n \n \n (3) \n | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n 39 | \n \n \n - | \n \n \n - | \n
| \n \n Impact on year-end ECL of exposures transferred between stages during the year | \n \n \n 36 | \n \n \n \n \n (2) \n | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n \n \n (5) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 26 | \n \n \n 3 | \n \n \n 44 | \n \n \n - | \n \n \n 73 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (16) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Change in models | \n \n \n \n \n (5) \n | \n \n \n 6 | \n \n \n \n \n (14) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (13) \n | \n
| \n \n Net exchange differences | \n \n \n 5 | \n \n \n 1 | \n \n \n 2 | \n \n \n - | \n \n \n 9 | \n
| \n \n Loss allowance on December 31 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (238) \n | \n
The ECL allowance for debt securities measured at FVOCI of EUR 341 million (December 2023: EUR 237 million) does not reduce the carrying amount of these investments (which are measured at fair value) but gives rise to an equal and opposite gain in OCI.
Expected credit losses on loans increased by EUR (92) million to EUR (118) million as per December 2024 (2023:\u00a0(26)\u00a0million). The increase in expected credit losses was mainly driven by a mortgage loan in Aegon US and partly by the stage transfer of an office facing with occupancy and valuation challenges (2023:\u00a0EUR\u00a0(14) million).
The majority of the expected credit losses recognized are in Stage 2 EUR (75) million (2023: EUR (24) million).
Based on the tables above, the following is a reconciliation of the loss allowance movements with an impact on the income statement with the net impairment charge presented in the income statement. Other represents impairment charges on asset types which are not individually material.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Loans measured at amortized cost | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \n
| \n \n Debt securities measured at FVOCI | \n \n \n \n \n (140) \n | \n \n \n \n \n (44) \n | \n
| \n \n Other | \n \n \n \n \n (9) \n | \n \n \n \n \n (60) \n | \n
| \n \n Net impairment charge in P&L | \n \n \n \n \n (237) \n | \n \n \n \n \n (119) \n | \n
The following tables further explains changes in the gross carrying amount / market value \u00a0of the financial assets and their\u00a0significance to the changes in the loss allowance for the same portfolio as discussed above:
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 46,461 | \n \n \n 357 | \n \n \n 325 | \n \n \n 100 | \n \n \n 47,242 | \n
| \n \n Transfers: | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (200) \n | \n \n \n 200 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n \n \n (48) \n | \n \n \n 48 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n 7 | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 150 | \n \n \n \n \n (150) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n 2 | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (5,201) \n | \n \n \n \n \n (69) \n | \n \n \n \n \n (102) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (5,394) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 8,421 | \n \n \n 21 | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n 8,434 | \n
| \n \n Modification of contractual cash flows of financial assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Unrealized gains/losses through equity | \n \n \n \n \n (1,294) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (1,329) \n | \n
| \n \n Amortizations through income statement | \n \n \n 94 | \n \n \n 1 | \n \n \n 27 | \n \n \n 17 | \n \n \n 138 | \n
| \n \n Movements related to fair value hedges | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Net exchange differences | \n \n \n 3,154 | \n \n \n 22 | \n \n \n 19 | \n \n \n 6 | \n \n \n 3,201 | \n
| \n \n Other movements | \n \n \n \n \n (1) \n | \n \n \n 0 | \n \n \n \n \n (1) \n | \n \n \n \n \n (0) \n | \n \n \n \n \n (2) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (45) \n | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n \n \n (43) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 51,529 | \n \n \n 335 | \n \n \n 291 | \n \n \n 92 | \n \n \n 52,247 | \n
| \n \n Expected credit losses on December 31 | \n \n \n \n \n (187) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (108) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (341) \n | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Debt securities | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 50,666 | \n \n \n 413 | \n \n \n 403 | \n \n \n 125 | \n \n \n 51,607 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (80) \n | \n \n \n 80 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (45) \n | \n \n \n - | \n \n \n 45 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 3 | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n 23 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 2 | \n \n \n - | \n \n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 76 | \n \n \n \n \n (76) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 3 to Stage 1 | \n \n \n 59 | \n \n \n - | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (7,836) \n | \n \n \n \n \n (83) \n | \n \n \n \n \n (111) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (8,057) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 3,672 | \n \n \n 37 | \n \n \n 22 | \n \n \n - | \n \n \n 3,731 | \n
| \n \n Modification of contractual cash flows of financial assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Unrealized gains/losses through equity | \n \n \n 1,488 | \n \n \n 16 | \n \n \n 1 | \n \n \n \n \n (10) \n | \n \n \n 1,495 | \n
| \n \n Amortizations through income statement | \n \n \n 113 | \n \n \n - | \n \n \n 19 | \n \n \n 17 | \n \n \n 148 | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,637) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (1,666) \n | \n
| \n \n Other movements | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (9) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (6) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 46,461 | \n \n \n 357 | \n \n \n 325 | \n \n \n 100 | \n \n \n 47,242 | \n
| \n \n Expected credit losses on December 31 | \n \n \n \n \n (147) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (237) \n | \n
The total amount of undiscounted ECL at initial recognition for purchased or originated credit-impaired financial assets recognized during the period was EUR 4 million (2023: EUR 2 million).
| \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,182 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (162) \n | \n \n \n 162 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 3 | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 75 | \n \n \n \n \n (75) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (633) \n | \n \n \n \n \n (69) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (702) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 483 | \n \n \n 76 | \n \n \n - | \n \n \n - | \n \n \n 559 | \n
| \n \n Realized gains and losses through income statement | \n \n \n 3 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Net exchange differences | \n \n \n 667 | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 674 | \n
| \n \n Other movements | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n
| \n \n (-) Expected credit losses on December 31 | \n \n \n \n \n (38) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n
| \n \n Net carrying amount on December 31 | \n \n \n 10,536 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n
| \n | \n\n \n 2023 | \n ||||
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n | \n\n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n | \n\n | \n
| \n \n Loans | \n \n \n 12-month ECL | \n \n \n Lifetime ECL not credit-impaired | \n \n \n Lifetime ECL credit-impaired | \n \n \n Purchased credit impaired | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1 | \n \n \n 10,416 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 10,418 | \n
| \n \n Transfers: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 1 to Stage 2 | \n \n \n \n \n (39) \n | \n \n \n 39 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets derecognized during the period other than write-offs | \n \n \n \n \n (566) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (571) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 691 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 691 | \n
| \n \n Net exchange differences | \n \n \n \n \n (354) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (355) \n | \n
| \n \n Gross carrying amount on December 31 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 10,182 | \n
| \n \n (-) Expected credit losses on December 31 | \n \n \n \n \n (24) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n
| \n \n Net carrying amount on December 31 | \n \n \n 10,123 | \n \n \n 33 | \n \n \n - | \n \n \n - | \n \n \n 10,156 | \n
ECL are sensitive to judgments and assumptions made regarding the formulation of forward-looking scenarios and how such scenarios are incorporated into the calculations. Management performs a sensitivity analysis on the ECL recognized on material classes of its assets. As ECL is not material at the end of 2024 and 2023, sensitivity on ECL is being assessed to be not material for 2024 and 2023 either.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1582m1475p": { "value": "\nMarket risk is the risk that changes in market prices (e.g. foreign exchange rates, interest rates) will affect the fulfillment cash\u00a0flows of insurance and reinsurance contracts as well as the fair value or future cash flows of financial instruments. The\u00a0objective of market risk management is to control exposures within acceptable parameters while optimizing the\u00a0return\u00a0on\u00a0risk.\u00a0
Aegon\u2019s management of market risk comprises equity price risk, interest rate risk and currency risk.
\nFluctuations in equity, real estate and capital markets have affected Aegon's profitability, capital position and sales of equity related products in the past and may continue to do so. Exposure to equity, real estate and capital markets exists in both assets and liabilities. Asset exposure exists through direct equity investment, where Aegon bears all or most of the volatility in\u00a0returns and investment performance risk. Equity market exposure is also present in insurance and investment contracts for\u00a0policyholders where funds are invested in equities, backing variable annuities, unit-linked products and mutual funds. Although\u00a0most of the risk remains with the policyholder, lower investment returns can reduce the asset management fee earned by Aegon on the asset balance in these products. In addition, some of this business has minimum return or accumulation guarantees.
In 2021, Transamerica expanded its dynamic hedge program to variable annuities with guaranteed minimum death benefit riders (GMDB) and remaining policies with guaranteed minimum income (GMIB) riders. This builds on the effective dynamic hedge program of policies with guaranteed minimum withdrawal benefits (GMWB). The dynamic hedge program covers the equity risks (and interest rate risk) embedded in the guarantees of its entire variable annuity portfolio. Dynamic hedging stabilizes cash flows and reduces sensitivities to changes in equity markets (and interest rates) on an economic basis.
The equity, real estate and other non-fixed-income portfolio of Aegon is as follows:
| \n \n Equity, real estate and non-fixed income exposure | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n
| \n \n Equity funds | \n \n \n 145 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 154 | \n
| \n \n Common shares | \n \n \n 95 | \n \n \n 14 | \n \n \n 5 | \n \n \n - | \n \n \n 114 | \n
| \n \n Preferred shares | \n \n \n 16 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 16 | \n
| \n \n Investments in real estate | \n \n \n 40 | \n \n \n - | \n \n \n 17 | \n \n \n - | \n \n \n 57 | \n
| \n \n Hedge funds | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n Other alternative investments | \n \n \n 2,682 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,682 | \n
| \n \n Other financial assets 1 | \n \n \n 1,800 | \n \n \n 716 | \n \n \n 33 | \n \n \n 2 | \n \n \n 2,551 | \n
| \n \n On December 31 | \n \n \n 4,785 | \n \n \n 730 | \n \n \n 56 | \n \n \n 10 | \n \n \n 5,582 | \n
| \n \n Equity, real estate and non-fixed income exposure | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 | \n
| \n \n Equity funds | \n \n \n 133 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 141 | \n
| \n \n Common shares | \n \n \n 106 | \n \n \n 14 | \n \n \n 5 | \n \n \n - | \n \n \n 126 | \n
| \n \n Preferred shares | \n \n \n 29 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 29 | \n
| \n \n Investments in real estate | \n \n \n 38 | \n \n \n - | \n \n \n 17 | \n \n \n - | \n \n \n 55 | \n
| \n \n Hedge funds | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Other alternative investments | \n \n \n 2,404 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2,404 | \n
| \n \n Other financial assets 1 | \n \n \n 1,856 | \n \n \n 772 | \n \n \n 4 | \n \n \n 1 | \n \n \n 2,633 | \n
| \n \n On December 31 | \n \n \n 4,573 | \n \n \n 786 | \n \n \n 27 | \n \n \n 10 | \n \n \n 5,395 | \n
| \n \n Market risk concentrations \u2013 shares | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2024 | \n
| \n \n Communication | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Consumer | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Financials | \n \n \n 23 | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 28 | \n
| \n \n Funds | \n \n \n 140 | \n \n \n 14 | \n \n \n - | \n \n \n - | \n \n \n 154 | \n
| \n \n Industries | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Other | \n \n \n 83 | \n \n \n - | \n \n \n 33 | \n \n \n 9 | \n \n \n 125 | \n
| \n \n On December 31 | \n \n \n 256 | \n \n \n 14 | \n \n \n 39 | \n \n \n 9 | \n \n \n 317 | \n
| \n \n Market risk concentrations \u2013 shares | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n Total 2023 | \n
| \n \n Communication | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Consumer | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Financials | \n \n \n 136 | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 142 | \n
| \n \n Funds | \n \n \n 30 | \n \n \n 14 | \n \n \n - | \n \n \n - | \n \n \n 45 | \n
| \n \n Industries | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 11 | \n
| \n \n Other | \n \n \n 84 | \n \n \n - | \n \n \n 4 | \n \n \n 9 | \n \n \n 97 | \n
| \n \n On December 31 | \n \n \n 267 | \n \n \n 14 | \n \n \n 10 | \n \n \n 9 | \n \n \n 300 | \n
The table that follows sets forth the closing levels of certain major indices at the end of the last five years.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n \n \n 2020 | \n
| \n \n S&P 500 | \n \n \n 5,882 | \n \n \n 4,770 | \n \n \n 3,840 | \n \n \n 4,766 | \n \n \n 3,756 | \n
| \n \n Nasdaq | \n \n \n 21,012 | \n \n \n 15,011 | \n \n \n 10,466 | \n \n \n 15,645 | \n \n \n 12,888 | \n
| \n \n FTSE 100 | \n \n \n 8,173 | \n \n \n 7,733 | \n \n \n 7,452 | \n \n \n 7,385 | \n \n \n 6,461 | \n
| \n \n AEX | \n \n \n 879 | \n \n \n 787 | \n \n \n 689 | \n \n \n 798 | \n \n \n 625 | \n
An analysis of Aegon\u2019s sensitivity to a 10% and 25% increase or decrease in equity prices at the reporting date, assuming that all other variables remain constant, is presented below.
| \n \n Sensitivity analysis of CSM , net result and shareholders\u2019 equity to equity markets | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n
| \n \n Equity 10% increase | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n \n \n (8) \n | \n \n \n \n \n (6) \n | \n \n | \n\n \n \n \n (5) \n | \n \n \n \n \n (13) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n \n \n (30) \n | \n \n \n - | \n \n \n \n \n (271) \n | \n \n \n \n \n (265) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 363 | \n \n \n 154 | \n \n \n 160 | \n \n \n 310 | \n \n \n 422 | \n \n \n 397 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Equity 10% decrease | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n 8 | \n \n \n 1 | \n \n | \n\n \n 4 | \n \n \n 11 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 7 | \n \n \n 7 | \n \n \n - | \n \n \n 229 | \n \n \n 225 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (331) \n | \n \n \n \n \n (169) \n | \n \n \n \n \n (178) \n | \n \n \n \n \n (316) \n | \n \n \n \n \n (465) \n | \n \n \n \n \n (431) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Equity 25% increase | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n \n \n (24) \n | \n \n \n \n \n (15) \n | \n \n | \n\n \n \n \n (31) \n | \n \n \n \n \n (50) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (95) \n | \n \n \n \n \n (99) \n | \n \n \n - | \n \n \n \n \n (737) \n | \n \n \n \n \n (721) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 916 | \n \n \n 398 | \n \n \n 413 | \n \n \n 775 | \n \n \n 1,035 | \n \n \n 989 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Equity 25% decrease | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n 24 | \n \n \n 9 | \n \n | \n\n \n 35 | \n \n \n 53 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 326 | \n \n \n 340 | \n \n \n - | \n \n \n 965 | \n \n \n 945 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (847) \n | \n \n \n \n \n (770) \n | \n \n \n \n \n (807) \n | \n \n \n \n \n (804) \n | \n \n \n \n \n (1,499) \n | \n \n \n \n \n (1,434) \n | \n
Over 2024 rising equity markets and interest rates in the US have resulted in reduced liability sensitivities, driven primarily by convex exposures of Indexed Universal Life and Variable Annuity products. Changes to asset sensitivities follow the liability changes, as hedge programs are rebalanced to match liabilities.
\nAegon bears interest rate risk with many of its products. In cases where cash flows are highly predictable, investing in assets that closely match the cash flow profile of the liabilities can offset this risk. For some Aegon country units, local capital markets are not well developed, which prevents the complete matching of assets and liabilities for those businesses. For\u00a0some products, cash flows are less predictable as a result of policyholder actions that can be affected by the level of interest rates.
In periods of rapidly increasing interest rates, policy loans, surrenders and withdrawals may increase. Premiums in flexible premium policies may decrease as policyholders seek investments with higher perceived returns. This activity may result in\u00a0cash payments by Aegon requiring the sale of invested assets at a time when the prices of those assets are adversely affected by the increase in market interest rates; this may result in realized investment losses. These cash payments to policyholders result in a decrease in total invested assets and a decrease in net result.
During periods of sustained low interest rates, Aegon may not be able to preserve margins as a result of minimum interest rate guarantees and minimum guaranteed crediting rates provided on policies. Also, investment earnings may be lower because the interest earnings on new fixed-income investments are likely to have declined with the market interest rates. Mortgage loans and redeemable bonds in the investment portfolio are more likely to be repaid as borrowers seek to borrow at\u00a0lower interest rates and Aegon may be required to reinvest the proceeds in securities bearing lower interest rates. Accordingly, net result declines as a result of a decrease in the spread between returns on the investment portfolio and the\u00a0interest rates either credited to policyholders or assumed in reserves.
Aegon manages interest rate risk closely, taking into account all the complexity regarding policyholder behavior and management action. Aegon employs sophisticated interest rate measurement techniques and actively uses derivatives and other risk mitigation tools to closely manage its interest rate risk exposure. Aegon operates an Investment & Counterparty Risk policy that limits the amount of interest rate risk to which the Group is exposed. All derivative use is governed by Aegon's Derivative Use Policy. A detailed description of the use of derivatives within Aegon is included in note 20 Derivatives.
Transamerica's dynamic hedge program contains variable annuities with guaranteed minimum death benefit riders (GMDB) and policies with guaranteed minimum income (GMIB) riders. This builds on the effective dynamic hedge program of policies with guaranteed minimum withdrawal benefits (GMWB). The dynamic hedge program covers the interest rate (and equity risks) embedded in the guarantees of its entire variable annuity portfolio. Dynamic hedging stabilizes cash flows and reduces sensitivities to changes in interest rates (and equity markets) on an economic basis.
The following table shows interest rates at the end of each of the past five years.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n \n \n 2020 | \n
| \n \n 3 month Term SOFR | \n \n \n 4.31% | \n \n \n 5.33% | \n \n \n 4.59% | \n \n \n 0.91% | \n \n \n 0.07% | \n
| \n \n 3-month EURIBOR | \n \n \n 2.71% | \n \n \n 3.91% | \n \n \n 2.13% | \n \n \n -0.57% | \n \n \n -0.55% | \n
| \n \n 10-year US Treasury | \n \n \n 4.57% | \n \n \n 3.86% | \n \n \n 3.83% | \n \n \n 1.78% | \n \n \n 0.91% | \n
| \n \n 10-year Dutch government | \n \n \n 2.59% | \n \n \n 2.32% | \n \n \n 2.91% | \n \n \n -0.03% | \n \n \n -0.48% | \n
An analysis of Aegon\u2019s sensitivity to a 100 basis points parallel increase or decrease in market interest rates at the reporting date, assuming that all other variables remain constant, is presented below:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n \n \n CSM | \n \n \n Net result | \n \n \n Shareholders\u2019 equity | \n
| \n \n 100 bps increase - Yield curve | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n \n \n (12) \n | \n \n \n \n \n (729) \n | \n \n | \n\n \n \n \n (114) \n | \n \n \n \n \n (652) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (717) \n | \n \n \n \n \n (3,596) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (1,029) \n | \n \n \n \n \n (3,876) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 49 | \n \n \n 742 | \n \n \n 4,009 | \n \n \n 126 | \n \n \n 1,008 | \n \n \n 4,158 | \n
| \n \n 100 bps decrease - Yield curve | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n | \n\n \n 15 | \n \n \n 859 | \n \n | \n\n \n 35 | \n \n \n 655 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 957 | \n \n \n 4,255 | \n \n \n 6 | \n \n \n 1,258 | \n \n \n 4,625 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (50) \n | \n \n \n \n \n (989) \n | \n \n \n \n \n (5,113) \n | \n \n \n \n \n (133) \n | \n \n \n \n \n (1,306) \n | \n \n \n \n \n (5,303) \n | \n
Over 2024 rising interest rates and equity markets in the US have led to reduced liability sensitivities, driven primarily by convex exposures of Variable Annuity products. Other long duration products such as Long Term Care and Unit Linked products with Non Lapse or secondary guarantees also have a natural convexity, leading to lower liability sensitivities when interest rate rise. Changes to asset sensitivities follow the liability changes, as hedge programs are rebalanced to match liabilities.
The exposures of our different products vary, and we have a number of asymmetric exposures, in particular. This is mainly explained by certain US products:
For a number of products (e.g. our Stable Value Solutions and parts of the Universal Life products), we have stable surrender values alongside stable crediting rates. This means that, as interest rates rise, it becomes more attractive in the short term for customers to lapse their policies and, due to the market movements, this leads to increased losses. There are also asymmetries from accounting rules of IFRS, where decreases in interest rates which turn SVS liabilities negative will be floored at zero based on IFRS 9 rules applied to these contracts.\u00a0
For other longer duration products such as Long-Term Care and Unit Linked products with non-lapse or secondary guarantees, we have a natural convexity, meaning we are more exposed to interest rates falling, which results in adverse sensitivities on these products than to interest rates rising which are positive. This is because we still expect to receive premiums over the next 10 to 20 years but will continue to pay claims for many years thereafter. The interaction of these two factors with the more symmetrical exposures on other products results in our overall sensitivities showing an adverse impact to both rising and falling interest rates.
On 30 September 2024, the remaining synthetic LIBOR rates were published for the last time and LIBOR came to an end. Before this, all derivative financial instruments using USD LIBOR and GBP LIBOR as a benchmark rate, transitioned to an alternative benchmark rate. Following the formal discontinuation, there are no remaining financial derivative instruments to\u00a0be\u00a0transitioned to an alternative benchmark rate.
\nAs an international group, Aegon is subject to foreign currency translation risk. Foreign currency exposure exists mainly when policies are denominated in currencies other than the issuer's functional currency. Currency risk in the investment portfolios backing insurance and investment liabilities is managed using asset-liability-matching principles. Assets allocated to equity are kept in local currencies to the extent shareholders' equity is required to satisfy regulatory and self-imposed capital requirements. Therefore, currency exchange rate fluctuations will affect the level of shareholders' equity as a result of the conversion of subsidiaries into euros, the Group's presentation currency. Aegon holds the remainder of its capital base (perpetual capital securities, subordinated and senior debt) in various currencies in amounts that are targeted to correspond to the book value of the country units. This balancing mitigates currency translation impacts on shareholders' equity and leverage ratios. Aegon does not hedge the income streams from the main non-euro units and, as a result, earnings may fluctuate due to currency translation. As Aegon has significant business segments in the Americas and in the United Kingdom, the principal sources of exposure from currency fluctuations are due to the differences between the US dollar and the euro, and between the UK pound and the euro. Aegon may experience significant changes in net result and shareholders' equity because of these fluctuations.
Aegon operates an Investment & Counterparty Risk Policy, which applies currency risk exposure limits both at Group and regional levels, and under which direct currency speculation or program trading by country units is not allowed unless explicit approval has been granted by the Group Risk and Capital Committee and the CEO. Assets should be held in the functional currency of the business written or hedged back to that currency. Where this is not possible or practical, remaining currency exposure should be sufficiently documented and limits are placed on the total exposure at both group level and for individual country units.
Information on Aegon's historical net result and shareholders' equity in functional currency are shown in the table below:
| \n \n Amounts in EUR million | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Net result | \n \n | \n\n | \n\n | \n
| \n \n \n \n Americas (in USD) \n | \n \n \n 198 | \n \n \n \n \n (266) \n | \n \n \n 562 | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 56 | \n \n \n 26 | \n \n \n 57 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Equity in functional currency | \n \n | \n\n | \n\n | \n
| \n \n \n \n Americas (in USD) \n | \n \n \n 3,838 | \n \n \n 3,690 | \n \n \n 3,456 | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 1,198 | \n \n \n 1,256 | \n \n \n 1,373 | \n
The summary quantitative information about Aegon\u2019s exposure to currency risk arising from insurance and reinsurance contracts and financial instruments was as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||||||
| \n \n Amounts in EUR million | \n \n \n EUR | \n \n \n GBP | \n \n \n USD | \n \n \n Other | \n \n \n Total | \n \n \n EUR | \n \n \n GBP | \n \n \n USD | \n \n \n Other | \n \n \n Total | \n
| \n \n Financial instruments - assets | \n \n \n 729 | \n \n \n 1,588 | \n \n \n 72,942 | \n \n \n 819 | \n \n \n 76,078 | \n \n \n 722 | \n \n \n 1,713 | \n \n \n 70,557 | \n \n \n 928 | \n \n \n 73,921 | \n
| \n \n Financial instruments - liabilities | \n \n \n 2,823 | \n \n \n 51,034 | \n \n \n 44,925 | \n \n \n - | \n \n \n 98,783 | \n \n \n 2,823 | \n \n \n 40,242 | \n \n \n 38,387 | \n \n \n - | \n \n \n 81,452 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance and reinsurance contract - assets | \n \n \n 7 | \n \n \n 3 | \n \n \n 16,090 | \n \n \n 46 | \n \n \n 16,147 | \n \n \n 7 | \n \n \n 2 | \n \n \n 16,744 | \n \n \n 39 | \n \n \n 16,793 | \n
| \n \n Insurance and reinsurance contract - liabilities | \n \n \n 720 | \n \n \n 66,675 | \n \n \n 137,867 | \n \n \n 5,730 | \n \n \n 210,993 | \n \n \n 715 | \n \n \n 61,922 | \n \n \n 130,886 | \n \n \n 6,124 | \n \n \n 199,648 | \n
The exchange rates for the US dollar and the UK pound per euro for each of the last five year ends are presented in\u00a0the\u00a0table\u00a0below:
| \n \n Closing rates | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n \n \n 2020 | \n
| \n \n USD | \n \n \n 1.04 | \n \n \n 1.10 | \n \n \n 1.07 | \n \n \n 1.14 | \n \n \n 1.22 | \n
| \n \n GBP | \n \n \n 0.83 | \n \n \n 0.87 | \n \n \n 0.89 | \n \n \n 0.84 | \n \n \n 0.90 | \n
Aegon Group companies' foreign currency exposure from monetary assets and liabilities denominated in foreign currencies (that is, other than the entity's functional currency), is not material.
\nThe sensitivity analysis in the following table shows an estimate of the translation effect of movements in the exchange rates of functional currencies of foreign subsidiaries against the euro presentation currency of the Group's financial statements, on\u00a0net income and shareholders' equity.\u200b\u200b\u200b\u200b\u200b\u200b\u200b
| \n \n Movement of markets 1 | \n \n \n Estimated approximate effects on net income | \n \n \n Estimated approximate effects on shareholders' equity | \n
| \n \n 2024 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD currencies relative to the euro | \n \n \n 43 | \n \n \n 734 | \n
| \n \n Increase by 15% of GBP currencies relative to the euro | \n \n \n 8 | \n \n \n 264 | \n
| \n \n Increase by 15% of non-euro currencies relative to the euro | \n \n \n 72 | \n \n \n 1,126 | \n
| \n \n Decrease by 15% of USD currencies relative to the euro | \n \n \n \n \n (31) \n | \n \n \n \n \n (543) \n | \n
| \n \n Decrease by 15% of GBP currencies relative to the euro | \n \n \n \n \n (6) \n | \n \n \n \n \n (195) \n | \n
| \n \n Decrease by 15% of non-euro currencies relative to the euro | \n \n \n \n \n (53) \n | \n \n \n \n \n (832) \n | \n
| \n | \n\n | \n\n | \n
| \n \n 2023 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD currencies relative to the euro | \n \n \n \n \n (27) \n | \n \n \n 769 | \n
| \n \n Increase by 15% of GBP currencies relative to the euro | \n \n \n \n \n (2) \n | \n \n \n 264 | \n
| \n \n Increase by 15% of non-euro currencies relative to the euro | \n \n \n \n \n (49) \n | \n \n \n 1,145 | \n
| \n \n Decrease by 15% of USD currencies relative to the euro | \n \n \n 20 | \n \n \n \n \n (569) \n | \n
| \n \n Decrease by 15% of GBP currencies relative to the euro | \n \n \n 2 | \n \n \n \n \n (195) \n | \n
| \n \n Decrease by 15% of non-euro currencies relative to the euro | \n \n \n 36 | \n \n \n \n \n (847) \n | \n
Liquidity risk is inherent in much of Aegon's business. Each asset purchased and liability incurred has its own liquidity characteristics. Some liabilities are surrenderable while some assets, such as privately placed loans, mortgage loans, real\u00a0estate, and limited partnership interests, have low liquidity. If Aegon requires significant amounts of cash on short notice in\u00a0excess of normal cash requirements and existing credit facilities, it may have difficulty selling these investments at attractive prices or in a timely manner. Liquidity risk is also affected by the use of collateralized financial derivatives to mitigate other risks.
Aegon operates a Liquidity Risk Policy under which country units are obliged to maintain sufficient levels of highly liquid assets to meet cash demands by policyholders and account holders over the next two years. Potential cash demands are assessed under a stress scenario including spikes in disintermediation risk due to rising interest rates and concerns over Aegon's financial strength due to multiple downgrades of the Group's credit rating. At the same time, the liquidity of assets other than cash and government issues is assumed to be severely impaired for an extended period of time. All legal entities and Aegon\u00a0Group must maintain sufficient liquidity to meet all cash needs under this extreme scenario.
Aegon held EUR 16,291 million of investments in cash, money market products and government bonds that are readily saleable or redeemable on demand (2023: EUR 19,399 million, exclude the investments of disposal group). The\u00a0Group expects to meet its obligations, even in a stressed liquidity event, from operating cash flows and the proceeds of maturing assets as well as these highly liquid assets. Further, the Group has access to back-up credit facilities, as disclosed in\u00a0note 31 Borrowings, amounting to EUR 1,544 million which were unused at the end of the reporting period (2023:\u00a0EUR 2,623 million).
The maturity analysis below shows the remaining contractual maturities of each category of financial liabilities (including\u00a0coupon interest). When the counterparty has a choice of when an amount is paid,\u00a0 the liability is included on\u00a0the\u00a0basis\u00a0of the earliest date on which it can be required to be paid. Financial liabilities that can be required to be\u00a0paid on\u00a0demand without any delay are reported in the category \"On demand.\" If there is a notice period, it has been assumed that notice is\u00a0given immediately, and the repayment has been presented at the earliest date after the end of the notice period. When the amount payable is not fixed, the amount reported is determined by reference to the conditions existing at the reporting date. For\u00a0example, when the amount payable varies with changes in an index, the amount disclosed may be based on the level of the\u00a0index at the reporting date.
To manage the liquidity risk arising from financial liabilities, Aegon holds liquid assets comprising cash and cash equivalents and investment grade investment securities for which there is an active and liquid market. These assets can be readily sold to\u00a0meet liquidity requirements. For this reason, Aegon believes that it is not necessary to disclose a maturity analysis in\u00a0respect of these assets to enable users to evaluate the nature and extent of liquidity risk.
Aegon's liquidity management is based on expected claims and benefit payments rather than on the contractual maturities. The projected cash benefit payments in the table below (maturity analysis - insurance and reinsurance contracts) are based on management's best estimates of the expected gross benefits and expenses, partially offset by the expected gross premiums, fees and charges relating to the existing business in force. Estimated cash benefit payments are based on mortality, morbidity and lapse assumptions based on Aegon's historical experience, modified for recently observed trends. Actual payment obligations may differ if experience varies from these assumptions. The cash benefit payments are presented on an undiscounted basis and are before the deduction of tax and before reinsurance.
For maturity information on other obligations, please see note 39 Commitments and contingencies.
\nThe following tables provides a maturity analysis of Aegon\u2019s insurance and reinsurance contracts, which reflects the dates on\u00a0which the cash flows are expected to occur. The cash flows presented below represent the undiscounted best estimate liability for the relevant periods.
| \n \n \n \n Undiscounted best estimate liability (i.e. Remaining contractual undiscounted net cash flows) \n | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 10,086 | \n \n \n 9,874 | \n \n \n 9,554 | \n \n \n 8,886 | \n \n \n 8,689 | \n \n \n 156,595 | \n \n \n 203,683 | \n
| \n \n - Without direct participation contracts | \n \n \n 10,827 | \n \n \n 10,448 | \n \n \n 9,924 | \n \n \n 9,223 | \n \n \n 8,836 | \n \n \n 136,030 | \n \n \n 185,290 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 1,880 | \n \n \n 1,964 | \n \n \n 1,911 | \n \n \n 1,688 | \n \n \n 1,681 | \n \n \n 23,816 | \n \n \n 32,940 | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n 20 | \n \n \n 21 | \n \n \n 20 | \n \n \n 20 | \n \n \n 20 | \n \n \n 827 | \n \n \n 928 | \n
| \n \n Total | \n \n \n 22,814 | \n \n \n 22,307 | \n \n \n 21,408 | \n \n \n 19,818 | \n \n \n 19,226 | \n \n \n 317,268 | \n \n \n 422,841 | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 8,737 | \n \n \n 8,287 | \n \n \n 8,186 | \n \n \n 7,823 | \n \n \n 7,187 | \n \n \n 127,351 | \n \n \n 167,571 | \n
| \n \n - Without direct participation contracts | \n \n \n 9,105 | \n \n \n 8,651 | \n \n \n 8,041 | \n \n \n 7,541 | \n \n \n 6,960 | \n \n \n 103,939 | \n \n \n 144,237 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 1,717 | \n \n \n 1,637 | \n \n \n 1,788 | \n \n \n 1,732 | \n \n \n 1,511 | \n \n \n 21,407 | \n \n \n 29,793 | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n 46 | \n \n \n 43 | \n \n \n 41 | \n \n \n 39 | \n \n \n 39 | \n \n \n 1,370 | \n \n \n 1,578 | \n
| \n \n Total | \n \n \n 19,605 | \n \n \n 18,618 | \n \n \n 18,056 | \n \n \n 17,136 | \n \n \n 15,698 | \n \n \n 254,067 | \n \n \n 343,179 | \n
| \n \n Expected release of risk adjustment | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 31 | \n \n \n 30 | \n \n \n 27 | \n \n \n 27 | \n \n \n 26 | \n \n \n 395 | \n \n \n 535 | \n
| \n \n - Without direct participation contracts | \n \n \n 53 | \n \n \n 48 | \n \n \n 45 | \n \n \n 44 | \n \n \n 45 | \n \n \n 2,525 | \n \n \n 2,760 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 10 | \n \n \n 9 | \n \n \n 7 | \n \n \n 8 | \n \n \n 8 | \n \n \n 71 | \n \n \n 112 | \n
| \n \n - Without direct participation contracts | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n \n \n (15) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (299) \n | \n \n \n \n \n (361) \n | \n
| \n \n Total | \n \n \n 79 | \n \n \n 74 | \n \n \n 67 | \n \n \n 68 | \n \n \n 68 | \n \n \n 2,691 | \n \n \n 3,047 | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 30 | \n \n \n 35 | \n \n \n 32 | \n \n \n 29 | \n \n \n 29 | \n \n \n 413 | \n \n \n 568 | \n
| \n \n - Without direct participation contracts | \n \n \n 72 | \n \n \n 63 | \n \n \n 60 | \n \n \n 57 | \n \n \n 58 | \n \n \n 2,373 | \n \n \n 2,683 | \n
| \n \n Investment contracts with DPF: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Direct participating contracts | \n \n \n 9 | \n \n \n 12 | \n \n \n 10 | \n \n \n 8 | \n \n \n 9 | \n \n \n 81 | \n \n \n 128 | \n
| \n \n - Without direct participation contracts | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n \n \n (12) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (278) \n | \n \n \n \n \n (332) \n | \n
| \n \n Total | \n \n \n 98 | \n \n \n 99 | \n \n \n 92 | \n \n \n 85 | \n \n \n 85 | \n \n \n 2,589 | \n \n \n 3,047 | \n
Most insurance products and investment contracts with discretionary participating features of Aegon contain investment related or investment return services, where policyholders are able to surrender or early terminate their contracts to receive their current account value net of contractual penalties after a specific notional period. The current account value reflects the fair value of underlying investments. Main product types where such demand features exist are permanent life insurance products and annuities issued in the Americas, and unit-linked contracts issued in Europe.
\nThe following table (maturity analysis - financial instruments) details the Group's liquidity analysis for its derivative financial instruments, based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on\u00a0a\u00a0net\u00a0basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement.
| \n \n \n \n Maturity analysis \u2013 gross undiscounted contractual cash flows (for non-derivatives) \n | \n \n \n On demand | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Trust pass-through securities | \n \n \n - | \n \n \n 10 | \n \n \n 94 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 72 | \n \n \n 187 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 88 | \n \n \n 88 | \n \n \n 88 | \n \n \n 67 | \n \n \n 46 | \n \n \n 2,577 | \n \n \n 2,954 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 1,155 | \n \n \n 588 | \n \n \n 805 | \n \n \n 51 | \n \n \n 51 | \n \n \n 1,112 | \n \n \n 3,762 | \n
| \n \n Investment contracts | \n \n \n 39,959 | \n \n \n 50,922 | \n \n \n 9 | \n \n \n 118 | \n \n \n 24 | \n \n \n 4 | \n \n \n 60 | \n \n \n 91,095 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 37 | \n \n \n 30 | \n \n \n 27 | \n \n \n 25 | \n \n \n 21 | \n \n \n 123 | \n \n \n 261 | \n
| \n \n Other financial liabilities | \n \n \n 3,419 | \n \n \n 856 | \n \n \n 27 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4,307 | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Trust pass-through securities | \n \n \n - | \n \n \n 9 | \n \n \n 9 | \n \n \n 88 | \n \n \n 3 | \n \n \n 3 | \n \n \n 71 | \n \n \n 184 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 111 | \n \n \n 83 | \n \n \n 83 | \n \n \n 83 | \n \n \n 63 | \n \n \n 3,158 | \n \n \n 3,579 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 123 | \n \n \n 1,057 | \n \n \n 726 | \n \n \n 48 | \n \n \n 48 | \n \n \n 1,140 | \n \n \n 3,143 | \n
| \n \n Investment contracts | \n \n \n 34,464 | \n \n \n 40,059 | \n \n \n 11 | \n \n \n 8 | \n \n \n 110 | \n \n \n 23 | \n \n \n 74 | \n \n \n 74,749 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 34 | \n \n \n 29 | \n \n \n 24 | \n \n \n 21 | \n \n \n 18 | \n \n \n 114 | \n \n \n 240 | \n
| \n \n Other financial liabilities | \n \n \n 4,582 | \n \n \n 930 | \n \n \n 52 | \n \n \n 7 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 5,575 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n \n Maturity analysis relating to derivatives1 | \n \n \n On demand | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n Gross settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 1,301 | \n \n \n 182 | \n \n \n 218 | \n \n \n 153 | \n \n \n 196 | \n \n \n 2,603 | \n \n \n 4,653 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (1,241) \n | \n \n \n \n \n (135) \n | \n \n \n \n \n (191) \n | \n \n \n \n \n (134) \n | \n \n \n \n \n (194) \n | \n \n \n \n \n (2,450) \n | \n \n \n \n \n (4,345) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 582 | \n \n \n 425 | \n \n \n 380 | \n \n \n 323 | \n \n \n 286 | \n \n \n 6,587 | \n \n \n 8,583 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (475) \n | \n \n \n \n \n (360) \n | \n \n \n \n \n (323) \n | \n \n \n \n \n (259) \n | \n \n \n \n \n (246) \n | \n \n \n \n \n (11,644) \n | \n \n \n \n \n (13,308) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n \n Maturity analysis relating to derivatives1 | \n \n \n On demand | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n Gross settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 9,757 | \n \n \n 170 | \n \n \n 171 | \n \n \n 202 | \n \n \n 145 | \n \n \n 2,560 | \n \n \n 13,004 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (9,710) \n | \n \n \n \n \n (121) \n | \n \n \n \n \n (134) \n | \n \n \n \n \n (191) \n | \n \n \n \n \n (134) \n | \n \n \n \n \n (2,458) \n | \n \n \n \n \n (12,748) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net settled | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash inflows | \n \n \n - | \n \n \n 282 | \n \n \n 253 | \n \n \n 260 | \n \n \n 286 | \n \n \n 341 | \n \n \n 7,509 | \n \n \n 8,930 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (560) \n | \n \n \n \n \n (224) \n | \n \n \n \n \n (244) \n | \n \n \n \n \n (266) \n | \n \n \n \n \n (271) \n | \n \n \n \n \n (12,248) \n | \n \n \n \n \n (13,813) \n | \n
| \n \n \n \n Maturity analysis \u2013 gross undiscounted contractual cash flows (for non-derivatives) \n | \n \n \n On demand | \n \n \n < 1 yr amount | \n \n \n 1 < 2 yrs amount | \n \n \n 2 < 3 yrs amount | \n \n \n 3 < 4 yrs amount | \n \n \n 4 < 5 yrs amount | \n \n \n > 5 yrs amount | \n \n \n Total amount | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Trust pass-through securities | \n \n \n - | \n \n \n 10 | \n \n \n 94 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 72 | \n \n \n 187 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 88 | \n \n \n 88 | \n \n \n 88 | \n \n \n 67 | \n \n \n 46 | \n \n \n 2,577 | \n \n \n 2,954 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 1,155 | \n \n \n 588 | \n \n \n 805 | \n \n \n 51 | \n \n \n 51 | \n \n \n 1,112 | \n \n \n 3,762 | \n
| \n \n Investment contracts | \n \n \n 39,959 | \n \n \n 50,922 | \n \n \n 9 | \n \n \n 118 | \n \n \n 24 | \n \n \n 4 | \n \n \n 60 | \n \n \n 91,095 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 37 | \n \n \n 30 | \n \n \n 27 | \n \n \n 25 | \n \n \n 21 | \n \n \n 123 | \n \n \n 261 | \n
| \n \n Other financial liabilities | \n \n \n 3,419 | \n \n \n 856 | \n \n \n 27 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4,307 | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Trust pass-through securities | \n \n \n - | \n \n \n 9 | \n \n \n 9 | \n \n \n 88 | \n \n \n 3 | \n \n \n 3 | \n \n \n 71 | \n \n \n 184 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 111 | \n \n \n 83 | \n \n \n 83 | \n \n \n 83 | \n \n \n 63 | \n \n \n 3,158 | \n \n \n 3,579 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 123 | \n \n \n 1,057 | \n \n \n 726 | \n \n \n 48 | \n \n \n 48 | \n \n \n 1,140 | \n \n \n 3,143 | \n
| \n \n Investment contracts | \n \n \n 34,464 | \n \n \n 40,059 | \n \n \n 11 | \n \n \n 8 | \n \n \n 110 | \n \n \n 23 | \n \n \n 74 | \n \n \n 74,749 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 34 | \n \n \n 29 | \n \n \n 24 | \n \n \n 21 | \n \n \n 18 | \n \n \n 114 | \n \n \n 240 | \n
| \n \n Other financial liabilities | \n \n \n 4,582 | \n \n \n 930 | \n \n \n 52 | \n \n \n 7 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 5,575 | \n
| \n | \n\n \n Real estate for own use | \n \n \n Equipment | \n \n \n Other | \n \n \n Total | \n
| \n \n Net Book Value | \n \n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2024 | \n \n \n 138 | \n \n \n 10 | \n \n \n 3 | \n \n \n 150 | \n
| \n \n Additions | \n \n \n 31 | \n \n \n - | \n \n \n 3 | \n \n \n 34 | \n
| \n \n Disposals | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (5) \n | \n
| \n \n Modification of lease contracts | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Depreciation through income statement | \n \n \n \n \n (22) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (30) \n | \n
| \n \n Net exchange differences | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n On December 31, 2024 | \n \n \n 154 | \n \n \n 4 | \n \n \n 4 | \n \n \n 162 | \n
| \n \n Gross carrying value | \n \n \n 284 | \n \n \n 21 | \n \n \n 10 | \n \n \n 314 | \n
| \n \n Accumulated depreciation | \n \n \n \n \n (130) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (152) \n | \n
| \n \n Net book value 2024 | \n \n \n 154 | \n \n \n 4 | \n \n \n 4 | \n \n \n 162 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net Book Value | \n \n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n 143 | \n \n \n 14 | \n \n \n 1 | \n \n \n 158 | \n
| \n \n Additions | \n \n \n 19 | \n \n \n 4 | \n \n \n 3 | \n \n \n 26 | \n
| \n \n Disposals | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Modification of lease contracts | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Depreciation through income statement | \n \n \n \n \n (24) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (32) \n | \n
| \n \n On December 31, 2023 | \n \n \n 138 | \n \n \n 10 | \n \n \n 3 | \n \n \n 150 | \n
| \n \n Gross carrying value | \n \n \n 247 | \n \n \n 37 | \n \n \n 7 | \n \n \n 290 | \n
| \n \n Accumulated depreciation | \n \n \n \n \n (109) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (140) \n | \n
| \n \n Net book value 2023 | \n \n \n 138 | \n \n \n 10 | \n \n \n 3 | \n \n \n 150 | \n
Right-of-use assets are mainly held by Aegon UK and Aegon Americas.
For information on the Lease liabilities and respective maturity analysis, please see note\u00a035 Other liabilities and note\u00a04 Financial risks, respectively.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Payables due to policyholders | \n \n \n 815 | \n \n \n 1,632 | \n
| \n \n Payables due to brokers and agents | \n \n \n 505 | \n \n \n 482 | \n
| \n \n Social security and taxes payable | \n \n \n 57 | \n \n \n 59 | \n
| \n \n Income tax payable | \n \n \n 4 | \n \n \n 1 | \n
| \n \n Investment creditors | \n \n \n 1,175 | \n \n \n 995 | \n
| \n \n Cash collateral on derivative transactions | \n \n \n 250 | \n \n \n 964 | \n
| \n \n Cash collateral on securities lent | \n \n \n 1,898 | \n \n \n 2,357 | \n
| \n \n Cash collateral - other | \n \n \n 92 | \n \n \n 68 | \n
| \n \n Repurchase agreements | \n \n \n - | \n \n \n 28 | \n
| \n \n Lease liabilities | \n \n \n 216 | \n \n \n 205 | \n
| \n \n Other creditors | \n \n \n 2,112 | \n \n \n 1,599 | \n
| \n \n On December 31 | \n \n \n 7,124 | \n \n \n 8,390 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 6,930 | \n \n \n 8,210 | \n
| \n \n Non-current | \n \n \n 194 | \n \n \n 180 | \n
The carrying amounts disclosed are reasonable approximations of the fair values at yearend, given the predominantly current nature of the other liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1061m1042p": { "value": "\nAegon\u2019s operating segments are based on the businesses as presented in internal reports that are regularly reviewed by\u00a0the\u00a0Executive\u00a0Director, who is regarded as the chief operating decision maker. All reportable segments are involved in insurance or reinsurance business, asset management or services related to these activities. The reportable segments are:
Americas: which covers business units in the United States, including any of the units\u2019 activities located outside of the\u00a0United\u00a0States;
United Kingdom: which covers business activities from platform business and traditional insurance in the United Kingdom;
International: which covers operations in Spain & Portugal, China, Brazil, Bermuda, Hong Kong, and Singapore\u00a0including any of the units\u2019 activities located outside these countries;
Asset Management: which covers business activities from\u00a0AAM Global Platforms and Strategic Partnerships;
Holding and other activities: which includes financing, employee and other administrative expenses of holding companies.
The Netherlands: which covered businesses activities from Aegon the Netherlands (ceased to be a reporting segment following the completion of the transaction with a.s.r. in 2023).
Aegon\u2019s segment information is prepared by consolidating on a proportionate basis Aegon\u2019s joint ventures and associated companies except for its 29.95% stake in a.s.r. The result of associate a.s.r. is included in Other income / (charges).
\nAegon uses the non-IFRS performance measure operating result. Operating result\u00a0reflects Aegon\u2019s profit before tax from underlying business operations, and mainly 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.\u00a0
Aegon believes that its performance measure operating result provides meaningful information about the operating results of\u00a0Aegon\u2019s business, including insight into the financial measures that Aegon\u2019s senior management uses in managing the\u00a0business.\u00a0While many other insurers in Aegon\u2019s peer group present substantially similar performance measures, the\u00a0performance measures presented in this document may nevertheless differ from the performance measures presented by\u00a0other insurers.
The reconciliation from result before tax from continuing operations,\u00a0being the most comparable IFRS\u00a0measure,\u00a0to operating result\u00a0is presented in the tables in this note.
Items excluded from operating result:
Fair value items (see details below).
Realized gains/(losses) on investments includes realized gains and losses on financial assets measured at amortized cost.
Impairment losses and reversals of impairment losses reflect the change in ECL for financial assets.
Other income / (charges) (see details below).
Fair value items include the following:
Over- or underperformance of investments and guarantees held at fair value for which management's best estimate investment return is included in operating result;
Hedge ineffectiveness on hedge transactions, fair value changes on economic hedges without natural offset in earnings and for which no hedge accounting is applied and fair value movements on real estate are included under fair value items;
Certain assets held by Aegon are carried at fair value and managed on a total return basis, with no offsetting changes in the\u00a0valuation of related liabilities. These include assets such as investments in hedge funds, private equities, real estate (limited\u00a0partnerships), convertible bonds and structured products;\u00a0
Certain products offered by Aegon Americas contain guarantees and are reported on a fair value basis and include the total return annuities and variable annuities. The earnings on these products are impacted by movements in equity markets and risk-free interest rates. Short-term developments in the financial markets may therefore cause volatility in earnings;
Changes in value of VFA products that result in (a reversal of) onerous contracts;
Changes in discount rates for General model insurance contracts, including the revaluation of changes in non-financial assumptions and experience adjustments that adjust CSM to current interest rates.
Other income / (charges) include the following:
Items which cannot be directly allocated to a specific line of business;
The impact of changes in actuarial assumptions and model updates on onerous contracts;
The impact of changes in financial assumptions and the passage of time on onerous groups of VFA contracts to which no\u00a0risk mitigation is applied,\u00a0and;
Other items that are outside the normal course of business, including restructuring charges.
In the Consolidated income statement, for onerous contracts, actuarial assumption and model updates are included in \"Insurance service result\". Restructuring charges are included in \"Other operating expenses\".
\nEarnings from Aegon\u2019s joint ventures in China, Spain & Portugal, and Aegon\u2019s associates in France and United Kingdom are reported as part of\u00a0operating result.
\nThe following table presents Aegon's segment results.
| \n \n Income statement - Operating result | \n \n \n Americas | \n \n \n United | \n \n \n Interna- tional | \n \n \n Asset Manage- ment | \n \n \n Holding and other activities | \n \n \n Elimi- nations | \n \n \n Segment total | \n \n \n Joint ventures and associates elimi- | \n \n \n Consoli- | \n
| \n \n Year ended December 31, 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Operating result | \n \n \n 1,062 | \n \n \n 198 | \n \n \n 183 | \n \n \n 201 | \n \n \n \n \n (209) \n | \n \n \n 50 | \n \n \n 1,485 | \n \n \n 234 | \n \n \n 1,719 | \n
| \n \n Fair value items | \n \n \n \n \n (161) \n | \n \n \n \n \n (67) \n | \n \n \n 2 | \n \n \n 2 | \n \n \n 23 | \n \n \n \n \n (7) \n | \n \n \n \n \n (208) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (209) \n | \n
| \n \n Realized gains / (losses) on investments | \n \n \n \n \n (51) \n | \n \n \n - | \n \n \n 15 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (36) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (53) \n | \n
| \n \n Impairment (losses) / reversals | \n \n \n \n \n (224) \n | \n \n \n - | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (236) \n | \n \n \n 7 | \n \n \n \n \n (229) \n | \n
| \n \n Non-operating items | \n \n \n \n \n (435) \n | \n \n \n \n \n (67) \n | \n \n \n 5 | \n \n \n 2 | \n \n \n 23 | \n \n \n \n \n (7) \n | \n \n \n \n \n (480) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (491) \n | \n
| \n \n \n \n Other income / (charges) \n | \n \n \n \n \n (452) \n | \n \n \n \n \n (48) \n | \n \n \n 2 | \n \n \n \n \n (45) \n | \n \n \n 326 | \n \n \n \n \n (28) \n | \n \n \n \n \n (245) \n | \n \n \n \n \n (324) \n | \n \n \n \n \n (568) \n | \n
| \n \n Result before tax | \n \n \n 175 | \n \n \n 83 | \n \n \n 189 | \n \n \n 158 | \n \n \n 140 | \n \n \n 14 | \n \n \n 760 | \n \n \n \n \n (100) \n | \n \n \n 660 | \n
| \n \n Income tax (expense) / benefit | \n \n \n 8 | \n \n \n \n \n (16) \n | \n \n \n \n \n (59) \n | \n \n \n \n \n (48) \n | \n \n \n 31 | \n \n \n - | \n \n \n \n \n (85) \n | \n \n \n 100 | \n \n \n 16 | \n
| \n \n Net result | \n \n \n 183 | \n \n \n 67 | \n \n \n 130 | \n \n \n 110 | \n \n \n 171 | \n \n \n 14 | \n \n \n 676 | \n \n \n - | \n \n \n 676 | \n
| \n \n Inter-segment operating result | \n \n \n \n \n (596) \n | \n \n \n \n \n (86) \n | \n \n \n 267 | \n \n \n 131 | \n \n \n 283 | \n \n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revenues | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts revenue | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Insurance contracts: direct part. 1 | \n \n \n 1,101 | \n \n \n 257 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,361 | \n \n \n \n \n (1) \n | \n \n \n 1,360 | \n
| \n \n - Insurance contracts: without direct part. 1 | \n \n \n 8,001 | \n \n \n 206 | \n \n \n 1,671 | \n \n \n - | \n \n \n - | \n \n \n \n \n (45) \n | \n \n \n 9,833 | \n \n \n \n \n (1,433) \n | \n \n \n 8,400 | \n
| \n \n Investment contracts with discretionary participation features revenue | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Insurance contracts: direct part. | \n \n \n - | \n \n \n 80 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 80 | \n \n \n - | \n \n \n 80 | \n
| \n \n Insurance revenue | \n \n \n 9,102 | \n \n \n 543 | \n \n \n 1,674 | \n \n \n - | \n \n \n - | \n \n \n \n \n (45) \n | \n \n \n 11,275 | \n \n \n \n \n (1,434) \n | \n \n \n 9,841 | \n
| \n \n Interest revenue on financial instruments calculated using the effective interest method | \n \n \n 3,117 | \n \n \n 76 | \n \n \n 70 | \n \n \n 1 | \n \n \n 76 | \n \n \n \n \n (11) \n | \n \n \n 3,330 | \n \n \n \n \n (5) \n | \n \n \n 3,325 | \n
| \n \n Interest revenue on financial instruments measured at FVPL | \n \n \n 346 | \n \n \n 463 | \n \n \n 1 | \n \n \n 13 | \n \n \n - | \n \n \n - | \n \n \n 823 | \n \n \n - | \n \n \n 823 | \n
| \n \n Other investment income | \n \n \n 16 | \n \n \n 2,050 | \n \n \n 111 | \n \n \n 15 | \n \n \n 475 | \n \n \n \n \n (475) \n | \n \n \n 2,192 | \n \n \n \n \n (124) \n | \n \n \n 2,069 | \n
| \n \n Fee and commission income | \n \n \n 1,761 | \n \n \n 283 | \n \n \n 25 | \n \n \n 643 | \n \n \n - | \n \n \n \n \n (153) \n | \n \n \n 2,558 | \n \n \n \n \n (179) \n | \n \n \n 2,378 | \n
| \n \n Other revenues | \n \n \n - | \n \n \n - | \n \n \n 34 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 35 | \n \n \n \n \n (35) \n | \n \n \n - | \n
| \n \n Total revenues | \n \n \n 14,342 | \n \n \n 3,414 | \n \n \n 1,915 | \n \n \n 673 | \n \n \n 552 | \n \n \n \n \n (684) \n | \n \n \n 20,213 | \n \n \n \n \n (1,777) \n | \n \n \n 18,436 | \n
| \n \n Inter-segment revenues | \n \n \n 46 | \n \n \n - | \n \n \n - | \n \n \n 154 | \n \n \n 483 | \n \n | \n\n | \n\n | \n\n | \n
The other charges of the Americas in 2024 are mainly due to unfavorable assumption updates and restructuring charges.
Impairment losses in Americas were majorly related to expected credit loss (ECL) balance increases for bonds and mortgages following more adverse economic scenario output and real estate occupancy rates.
| \n \n Income statement - Operating result | \n \n \n Americas | \n \n \n The | \n \n \n United | \n \n \n Interna- | \n \n \n Asset Manage- ment | \n \n \n Holding and other activities | \n \n \n Elimi- | \n \n \n Segment total | \n \n \n Joint ventures and associates elimi- | \n \n \n Consoli- | \n
| \n \n Year ended December 31, 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Operating result | \n \n \n 1,107 | \n \n \n - | \n \n \n 214 | \n \n \n 196 | \n \n \n 145 | \n \n \n \n \n (173) \n | \n \n \n 10 | \n \n \n 1,498 | \n \n \n 19 | \n \n \n 1,517 | \n
| \n \n Fair value items | \n \n \n 138 | \n \n \n - | \n \n \n \n \n (76) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (8) \n | \n \n \n 24 | \n \n \n \n \n (1) \n | \n \n \n 76 | \n \n \n 9 | \n \n \n 85 | \n
| \n \n Realized gains / (losses) on investments | \n \n \n \n \n (683) \n | \n \n \n - | \n \n \n - | \n \n \n 24 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (659) \n | \n \n \n \n \n (30) \n | \n \n \n \n \n (689) \n | \n
| \n \n Impairment (losses) / reversals | \n \n \n \n \n (62) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n \n \n (92) \n | \n \n \n 2 | \n \n \n \n \n (90) \n | \n
| \n \n Non-operating items | \n \n \n \n \n (607) \n | \n \n \n - | \n \n \n \n \n (76) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (8) \n | \n \n \n 17 | \n \n \n \n \n (1) \n | \n \n \n \n \n (675) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (695) \n | \n
| \n \n \n \n Other income / (charges) \n | \n \n \n \n \n (961) \n | \n \n \n \n \n (65) \n | \n \n \n \n \n (85) \n | \n \n \n \n \n (110) \n | \n \n \n \n \n (31) \n | \n \n \n 110 | \n \n \n 2 | \n \n \n \n \n (1,140) \n | \n \n \n \n \n (90) \n | \n \n \n \n \n (1,230) \n | \n
| \n \n Result before tax | \n \n \n \n \n (460) \n | \n \n \n \n \n (65) \n | \n \n \n 52 | \n \n \n 85 | \n \n \n 106 | \n \n \n \n \n (46) \n | \n \n \n 11 | \n \n \n \n \n (317) \n | \n \n \n \n \n (91) \n | \n \n \n \n \n (408) \n | \n
| \n \n Income tax (expense) / benefit | \n \n \n 214 | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n \n \n (69) \n | \n \n \n \n \n (36) \n | \n \n \n 31 | \n \n \n - | \n \n \n 118 | \n \n \n 91 | \n \n \n 209 | \n
| \n \n Net result | \n \n \n \n \n (246) \n | \n \n \n \n \n (65) \n | \n \n \n 29 | \n \n \n 16 | \n \n \n 70 | \n \n \n \n \n (14) \n | \n \n \n 11 | \n \n \n \n \n (199) \n | \n \n \n - | \n \n \n \n \n (199) \n | \n
| \n \n Inter-segment operating result | \n \n \n \n \n (569) \n | \n \n \n \n \n (48) \n | \n \n \n \n \n (75) \n | \n \n \n 256 | \n \n \n 150 | \n \n \n 286 | \n \n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revenues | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts revenue | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Insurance contracts: direct part. | \n \n \n 9,468 | \n \n \n - | \n \n \n 600 | \n \n \n 1,095 | \n \n \n - | \n \n \n - | \n \n \n \n \n (51) \n | \n \n \n 11,112 | \n \n \n \n \n (1,490) \n | \n \n \n 9,622 | \n
| \n \n - Insurance contracts: without direct part. | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 700 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 700 | \n \n | \n\n \n 700 | \n
| \n \n Investment contracts with discretionary participation features revenue | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Insurance contracts: direct part. | \n \n \n - | \n \n \n - | \n \n \n 64 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 64 | \n \n \n - | \n \n \n 64 | \n
| \n \n Insurance revenue | \n \n \n 9,468 | \n \n \n - | \n \n \n 663 | \n \n \n 1,795 | \n \n \n - | \n \n \n - | \n \n \n \n \n (51) \n | \n \n \n 11,876 | \n \n \n \n \n (1,490) \n | \n \n \n 10,386 | \n
| \n \n Interest revenue on financial instruments calculated using the effective interest method | \n \n \n 3,108 | \n \n \n - | \n \n \n 58 | \n \n \n 87 | \n \n \n 2 | \n \n \n 90 | \n \n \n \n \n (6) \n | \n \n \n 3,339 | \n \n \n \n \n (3) \n | \n \n \n 3,336 | \n
| \n \n Interest revenue on financial instruments measured at FVPL | \n \n \n 339 | \n \n \n - | \n \n \n 486 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 826 | \n \n \n - | \n \n \n 826 | \n
| \n \n Other investment income | \n \n \n 14 | \n \n \n - | \n \n \n 1,818 | \n \n \n 104 | \n \n \n 14 | \n \n \n 498 | \n \n \n \n \n (498) \n | \n \n \n 1,950 | \n \n \n \n \n (116) \n | \n \n \n 1,833 | \n
| \n \n Fee and commission income | \n \n \n 1,653 | \n \n \n - | \n \n \n 214 | \n \n \n 34 | \n \n \n 632 | \n \n \n - | \n \n \n \n \n (158) \n | \n \n \n 2,376 | \n \n \n \n \n (215) \n | \n \n \n 2,160 | \n
| \n \n Other revenues | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 37 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 38 | \n \n \n \n \n (38) \n | \n \n \n - | \n
| \n \n Total revenues | \n \n \n 14,582 | \n \n \n - | \n \n \n 3,239 | \n \n \n 2,058 | \n \n \n 649 | \n \n \n 589 | \n \n \n \n \n (713) \n | \n \n \n 20,404 | \n \n \n \n \n (1,862) \n | \n \n \n 18,541 | \n
| \n \n Inter-segment revenues | \n \n \n 49 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 172 | \n \n \n 500 | \n \n | \n\n | \n\n | \n\n | \n
On July 4, 2023, Aegon announced the completion of the combination of its Dutch pension, life and non-life insurance,\u00a0banking, and mortgage origination activities with a.s.r., and the beginning of its asset management partnership with a.s.r. As\u00a0part\u00a0of the\u00a0transaction, Aegon received EUR 2.2 billion in cash proceeds and almost a 30% stake in a.s.r. In light of the\u00a0transaction, Aegon\u00a0the\u00a0Netherlands is no longer reported as a separate segment, and its first half 2023 result is\u00a0included in Other charges in the income statement.
The other charges of the Americas in 2023 are mainly due to unfavorable assumption updates and restructuring charges.
| \n \n Income statement - Operating result | \n \n \n Americas | \n \n \n The | \n \n \n United | \n \n \n Interna- | \n \n \n Asset Manage- ment | \n \n \n Holding and other activities | \n \n \n Elimi- | \n \n \n Segment total | \n \n \n Joint ventures and associates elimi- | \n \n \n Consoli- | \n
| \n \n Year ended December 31, 2022 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Operating result | \n \n \n 1,433 | \n \n \n - | \n \n \n 211 | \n \n \n 202 | \n \n \n 193 | \n \n \n \n \n (220) \n | \n \n \n \n \n (17) \n | \n \n \n 1,802 | \n \n \n \n \n (59) \n | \n \n \n 1,743 | \n
| \n \n Fair value items | \n \n \n \n \n (85) \n | \n \n \n - | \n \n \n \n \n (71) \n | \n \n \n 38 | \n \n \n \n \n (3) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (76) \n | \n \n \n \n \n (218) \n | \n \n \n 8 | \n \n \n \n \n (209) \n | \n
| \n \n Realized gains / (losses) on investments | \n \n \n \n \n (518) \n | \n \n \n - | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n \n \n (481) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (497) \n | \n
| \n \n Impairment (losses) / reversals | \n \n \n \n \n (78) \n | \n \n \n - | \n \n \n \n \n (11) \n | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (18) \n | \n \n \n - | \n \n \n \n \n (122) \n | \n \n \n 1 | \n \n \n \n \n (121) \n | \n
| \n \n Non-operating items | \n \n \n \n \n (681) \n | \n \n \n - | \n \n \n \n \n (83) \n | \n \n \n 54 | \n \n \n \n \n (3) \n | \n \n \n \n \n (32) \n | \n \n \n \n \n (76) \n | \n \n \n \n \n (820) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (827) \n | \n
| \n \n \n \n Other income / (charges) \n | \n \n \n \n \n (117) \n | \n \n \n \n \n (1,823) \n | \n \n \n \n \n (64) \n | \n \n \n 326 | \n \n \n \n \n (19) \n | \n \n \n \n \n (118) \n | \n \n \n - | \n \n \n \n \n (1,815) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (1,834) \n | \n
| \n \n Result before tax | \n \n \n 636 | \n \n \n \n \n (1,823) \n | \n \n \n 64 | \n \n \n 582 | \n \n \n 171 | \n \n \n \n \n (371) \n | \n \n \n \n \n (93) \n | \n \n \n \n \n (834) \n | \n \n \n \n \n (85) \n | \n \n \n \n \n (919) \n | \n
| \n \n Income tax (expense) / benefit | \n \n \n \n \n (102) \n | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (57) \n | \n \n \n \n \n (67) \n | \n \n \n 68 | \n \n \n - | \n \n \n \n \n (156) \n | \n \n \n 85 | \n \n \n \n \n (71) \n | \n
| \n \n Net result | \n \n \n 533 | \n \n \n \n \n (1,823) \n | \n \n \n 67 | \n \n \n 526 | \n \n \n 104 | \n \n \n \n \n (303) \n | \n \n \n \n \n (93) \n | \n \n \n \n \n (990) \n | \n \n \n - | \n \n \n \n \n (990) \n | \n
| \n \n Inter-segment operating result | \n \n \n \n \n (458) \n | \n \n \n \n \n (94) \n | \n \n \n \n \n (75) \n | \n \n \n 236 | \n \n \n 188 | \n \n \n 203 | \n \n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revenues | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts revenue | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Insurance contracts: direct part. | \n \n \n 10,174 | \n \n \n - | \n \n \n 628 | \n \n \n 967 | \n \n \n - | \n \n \n - | \n \n \n \n \n (32) \n | \n \n \n 11,736 | \n \n \n \n \n (1,210) \n | \n \n \n 10,526 | \n
| \n \n - Insurance contracts: without direct part. | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 651 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 651 | \n \n \n - | \n \n \n 651 | \n
| \n \n Investment contracts with discretionary participation features revenue | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Insurance contracts: direct part. | \n \n \n - | \n \n \n - | \n \n \n 74 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 74 | \n \n \n - | \n \n \n 74 | \n
| \n \n Insurance revenue | \n \n \n 10,174 | \n \n \n - | \n \n \n 701 | \n \n \n 1,618 | \n \n \n - | \n \n \n - | \n \n \n \n \n (32) \n | \n \n \n 12,461 | \n \n \n \n \n (1,210) \n | \n \n \n 11,251 | \n
| \n \n Interest revenue on financial instruments calculated using the effective interest method | \n \n \n 3,105 | \n \n \n - | \n \n \n 12 | \n \n \n 191 | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (5) \n | \n \n \n 3,306 | \n \n \n \n \n (3) \n | \n \n \n 3,303 | \n
| \n \n Interest revenue on financial instruments measured at FVPL | \n \n \n 228 | \n \n \n - | \n \n \n 399 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 624 | \n \n \n - | \n \n \n 624 | \n
| \n \n Other investment income | \n \n \n 32 | \n \n \n - | \n \n \n 1,530 | \n \n \n 100 | \n \n \n 12 | \n \n \n 425 | \n \n \n \n \n (425) \n | \n \n \n 1,673 | \n \n \n \n \n (110) \n | \n \n \n 1,564 | \n
| \n \n Fee and commission income | \n \n \n 1,756 | \n \n \n - | \n \n \n 223 | \n \n \n 62 | \n \n \n 693 | \n \n \n - | \n \n \n \n \n (187) \n | \n \n \n 2,548 | \n \n \n \n \n (254) \n | \n \n \n 2,294 | \n
| \n \n Other revenues | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 25 | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n 30 | \n \n \n \n \n (30) \n | \n \n \n - | \n
| \n \n Total revenues | \n \n \n 15,295 | \n \n \n - | \n \n \n 2,865 | \n \n \n 1,993 | \n \n \n 710 | \n \n \n 427 | \n \n \n \n \n (648) \n | \n \n \n 20,642 | \n \n \n \n \n (1,607) \n | \n \n \n 19,035 | \n
| \n \n Inter-segment revenues | \n \n \n 33 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 208 | \n \n \n 426 | \n \n | \n\n | \n\n | \n\n | \n
The Americas recorded other charges of EUR 117 million in 2022 mainly due to unfavorable assumption updates and restructuring charges.
\nThe reconciliation from operating result to result before tax from continuing operations, being the most comparable IFRS\u00a0measure, is presented in\u00a0the\u00a0table below. For those items that cannot be directly reconciled to the respective notes, the\u00a0explanation is provided below the\u00a0table.
| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Result before tax from continuing operations | \n \n | \n\n \n 660 | \n \n \n \n \n (391) \n | \n \n \n 827 | \n
| \n \n Elimination of share in earnings of joint ventures and associates | \n \n | \n\n \n \n \n (234) \n | \n \n \n \n \n (19) \n | \n \n \n 59 | \n
| \n \n Insurance revenue | \n \n \n 6 | \n \n \n 2 | \n \n \n \n \n (15) \n | \n \n \n 1 | \n
| \n \n Insurance service expenses | \n \n \n 7 | \n \n \n 428 | \n \n \n 427 | \n \n \n 442 | \n
| \n \n Net (expenses) / income on reinsurance held | \n \n \n 8 | \n \n \n \n \n (56) \n | \n \n \n \n \n (23) \n | \n \n \n \n \n (40) \n | \n
| \n \n Net fair value change of financial investments at fair | \n \n \n 9.4 / 10.4 | \n \n \n \n \n (240) \n | \n \n \n \n \n (224) \n | \n \n \n 183 | \n
| \n \n Net fair value change of derivatives | \n \n \n 9.4 / 10.4 | \n \n \n 3 | \n \n \n \n \n (7) \n | \n \n \n - | \n
| \n \n Realized gains and losses on financial investments | \n \n \n 9.4 / 10.4 | \n \n \n 93 | \n \n \n 683 | \n \n \n 670 | \n
| \n \n Net fair value change on investments in real estate | \n \n \n 9.4 / 10.4 | \n \n \n \n \n (1) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n
| \n \n \n \n Impairment reversals / (losses) \n | \n \n \n 9.5 / 10.5 | \n \n \n 229 | \n \n \n 90 | \n \n \n 121 | \n
| \n \n \n \n Insurance finance income / (expenses) \n | \n \n \n 9 | \n \n \n 440 | \n \n \n 375 | \n \n \n \n \n (614) \n | \n
| \n \n Net reinsurance finance (expenses) / income on reinsurance held | \n \n \n 9 | \n \n \n \n \n (13) \n | \n \n \n \n \n (85) \n | \n \n \n 68 | \n
| \n \n Investment contract (expenses) / income | \n \n \n 10 | \n \n \n \n \n (6) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (2) \n | \n
| \n \n Net fair value change on borrowings and other financial liabilities | \n \n | \n\n \n - | \n \n \n - | \n \n \n \n \n (5) \n | \n
| \n \n Fee and commission income | \n \n \n 12 | \n \n \n \n \n (21) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (14) \n | \n
| \n \n Commissions and expenses | \n \n \n 13 | \n \n \n 342 | \n \n \n 597 | \n \n \n 378 | \n
| \n \n Other income | \n \n \n 14 | \n \n \n \n \n (146) \n | \n \n \n \n \n (18) \n | \n \n \n \n \n (341) \n | \n
| \n \n Other charges | \n \n \n 14 | \n \n \n 6 | \n \n \n 79 | \n \n \n - | \n
| \n \n Results of businesses disposed during reporting periods | \n \n | \n\n \n - | \n \n \n 48 | \n \n \n 70 | \n
| \n \n Operating result | \n \n | \n\n \n 1,485 | \n \n \n 1,498 | \n \n \n 1,802 | \n
| \n \n Tax effect1 | \n \n | \n\n \n \n \n (309) \n | \n \n \n \n \n (246) \n | \n \n \n \n \n (386) \n | \n
| \n \n Operating result after tax | \n \n | \n\n \n 1,176 | \n \n \n 1,252 | \n \n \n 1,416 | \n
Insurance service expenses are mainly driven by two items:
\nAssumption changes on onerous contracts amounting to a loss of EUR 472 million (2023: loss of EUR 497 million), which\u00a0is included in Other income / (charges).
Change in value of VFA products that result in (a reversal of) onerous contracts, amounting to a gain of EUR 57 million (2023: gain of 129 million), which is included in Fair value items.
Net income / (expenses) on reinsurance held mainly consist of assumption changes that relate to (a reversal of) underlying onerous contracts, amounting to a gain of EUR 56 million (2023: gain of EUR 31 million), which is included in Other income / (charges).
Net fair value change of financial investments at fair value through profit or loss, other than derivatives reflects the over- or underperformance of investments and guarantees held at fair value for which the expected long-term return is included in the operating result.
Impairment loss / (reversals) mainly relate to an increase in expected credit loss balance for bonds and mortgages in Americas, amounting to a loss of EUR 229 million (2023: loss of EUR 90 million).
Insurance finance income / (expenses) mainly relate to changes in discount rates, amounting to a loss of EUR 392 million (2023: loss of EUR 354 million), which is included in Fair value items.
Net reinsurance finance income / (expenses) on reinsurance held\u00a0relate to changes in discount rates\u200b\u200b\u200b\u200b\u200b\u200b\u200b, amounting to a gain of\u00a0EUR 14 million (2023: gain of EUR 84 million), which is included in Fair value items.
Commissions and expenses, which are included in Other income / (charges), relate to items that can cannot be directly allocated to a specific line of business and restructuring charges.
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Holding and other activities | \n \n \n Total | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amortization of deferred expenses and future servicing rights | \n \n \n 23 | \n \n \n 5 | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 40 | \n
| \n \n Depreciation | \n \n \n 65 | \n \n \n 13 | \n \n \n 5 | \n \n \n 1 | \n \n \n 9 | \n \n \n 94 | \n
| \n \n Impairment losses / (reversals) on financial assets, excluding receivables | \n \n \n 223 | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n 228 | \n
| \n \n Impairment losses / (reversals) on non- financial assets and receivables | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amortization of deferred expenses and future servicing rights | \n \n \n 24 | \n \n \n 2 | \n \n \n 1 | \n \n \n 6 | \n \n \n - | \n \n \n 33 | \n
| \n \n Depreciation | \n \n \n 64 | \n \n \n 12 | \n \n \n 5 | \n \n \n 2 | \n \n \n 14 | \n \n \n 97 | \n
| \n \n Impairment losses / (reversals) on financial assets, excluding receivables | \n \n \n 59 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 59 | \n
| \n \n Impairment losses / (reversals) on non- financial assets and receivables | \n \n \n 32 | \n \n \n - | \n \n \n 21 | \n \n \n - | \n \n \n 7 | \n \n \n 60 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 2022 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amortization of deferred expenses and future servicing rights | \n \n \n 34 | \n \n \n 2 | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 38 | \n
| \n \n Depreciation | \n \n \n 67 | \n \n \n 11 | \n \n \n 6 | \n \n \n 2 | \n \n \n 17 | \n \n \n 103 | \n
| \n \n Impairment losses / (reversals) on financial assets, excluding receivables | \n \n \n 78 | \n \n \n - | \n \n \n 13 | \n \n \n - | \n \n \n - | \n \n \n 92 | \n
| \n \n Impairment losses / (reversals) on non- financial assets and receivables | \n \n \n 17 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 18 | \n \n \n 46 | \n
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Holding and other activities | \n \n \n Total | \n
| \n \n Year 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Number of employees - headcount 1 | \n \n \n 6,996 | \n \n \n 2,861 | \n \n \n 3,319 | \n \n \n 1,366 | \n \n \n 1,040 | \n \n \n 15,582 | \n
| \n \n Of which Aegon's share of employees in joint ventures and associates 2 | \n \n \n - | \n \n \n - | \n \n \n 2,552 | \n \n \n 226 | \n \n \n - | \n \n \n 2,778 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Year 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Number of employees - headcount 1 | \n \n \n 6,967 | \n \n \n 2,591 | \n \n \n 3,654 | \n \n \n 1,409 | \n \n \n 1,037 | \n \n \n 15,658 | \n
| \n \n Of which Aegon's share of employees in joint ventures and associates 2 | \n \n \n - | \n \n \n 49 | \n \n \n 2,936 | \n \n \n 219 | \n \n \n - | \n \n \n 3,204 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Year 2022 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Number of employees - headcount 1 | \n \n \n 6,153 | \n \n \n 2,621 | \n \n \n 4,281 | \n \n \n 1,464 | \n \n \n 958 | \n \n \n 15,478 | \n
| \n \n Of which Aegon's share of employees in joint ventures and associates | \n \n \n - | \n \n \n 62 | \n \n \n 3,239 | \n \n \n 206 | \n \n \n - | \n \n \n 3,507 | \n
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset management | \n \n \n Holding and other activities | \n \n \n Eliminations | \n \n \n Total | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Assets | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash and Cash equivalents | \n \n \n 1,049 | \n \n \n 231 | \n \n \n 110 | \n \n \n 162 | \n \n \n 1,917 | \n \n \n - | \n \n \n 3,469 | \n
| \n \n Investments | \n \n \n 173,726 | \n \n \n 118,218 | \n \n \n 1,599 | \n \n \n 162 | \n \n \n 11 | \n \n \n - | \n \n \n 293,716 | \n
| \n \n Investments in joint ventures | \n \n \n - | \n \n \n - | \n \n \n 1,020 | \n \n \n 483 | \n \n \n - | \n \n \n - | \n \n \n 1,503 | \n
| \n \n Investments in associates | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 289 | \n \n \n 2,833 | \n \n \n - | \n \n \n 3,122 | \n
| \n \n Reinsurance contract assets | \n \n \n 15,968 | \n \n \n 3 | \n \n \n 5,183 | \n \n \n - | \n \n \n - | \n \n \n \n \n (5,133) \n | \n \n \n 16,021 | \n
| \n \n Insurance contract assets | \n \n \n 122 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 125 | \n
| \n \n Deferred expenses | \n \n \n 473 | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 490 | \n
| \n \n Other assets | \n \n \n 6,622 | \n \n \n 1,585 | \n \n \n 163 | \n \n \n 438 | \n \n \n 8,251 | \n \n \n \n \n (8,114) \n | \n \n \n 8,944 | \n
| \n \n Total assets | \n \n \n 197,960 | \n \n \n 120,054 | \n \n \n 8,078 | \n \n \n 1,534 | \n \n \n 13,011 | \n \n \n \n \n (13,247) \n | \n \n \n 327,390 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Reinsurance contract liabilities | \n \n \n 90 | \n \n \n 5 | \n \n \n 208 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 303 | \n
| \n \n Insurance contract liabilities | \n \n \n 142,996 | \n \n \n 44,339 | \n \n \n 6,243 | \n \n \n - | \n \n \n - | \n \n \n \n \n (5,219) \n | \n \n \n 188,359 | \n
| \n \n Investment contracts with discretionary participating features | \n \n \n - | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
| \n \n Investment contracts without discretionary participating features | \n \n \n 40,728 | \n \n \n 50,942 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 91,669 | \n
| \n \n Other liabilities | \n \n \n 10,318 | \n \n \n 988 | \n \n \n 226 | \n \n \n 378 | \n \n \n 3,698 | \n \n \n \n \n (192) \n | \n \n \n 15,414 | \n
| \n \n Total liabilities | \n \n \n 194,131 | \n \n \n 118,605 | \n \n \n 6,676 | \n \n \n 378 | \n \n \n 3,698 | \n \n \n \n \n (5,411) \n | \n \n \n 318,077 | \n
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset management | \n \n \n Holding and other activities | \n \n \n Eliminations | \n \n \n Total | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Assets | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash and Cash equivalents | \n \n \n 1,042 | \n \n \n 200 | \n \n \n 106 | \n \n \n 246 | \n \n \n 2,479 | \n \n \n - | \n \n \n 4,074 | \n
| \n \n Assets held for sale | \n \n \n - | \n \n \n 432 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 432 | \n
| \n \n Investments | \n \n \n 161,715 | \n \n \n 102,795 | \n \n \n 1,678 | \n \n \n 176 | \n \n \n 18 | \n \n \n - | \n \n \n 266,382 | \n
| \n \n Investments in joint ventures | \n \n \n - | \n \n \n - | \n \n \n 1,034 | \n \n \n 397 | \n \n \n - | \n \n \n - | \n \n \n 1,430 | \n
| \n \n Investments in associates | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n 279 | \n \n \n 2,622 | \n \n \n - | \n \n \n 2,906 | \n
| \n \n Reinsurance contract assets | \n \n \n 16,563 | \n \n \n 2 | \n \n \n 5,656 | \n \n \n - | \n \n \n - | \n \n \n \n \n (5,613) \n | \n \n \n 16,608 | \n
| \n \n Insurance contract assets | \n \n \n 181 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 185 | \n
| \n \n Deferred expenses | \n \n \n 428 | \n \n \n 19 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 447 | \n
| \n \n Other assets | \n \n \n 6,486 | \n \n \n 1,818 | \n \n \n 183 | \n \n \n 359 | \n \n \n 8,095 | \n \n \n \n \n (7,823) \n | \n \n \n 9,118 | \n
| \n \n Total assets | \n \n \n 186,415 | \n \n \n 105,265 | \n \n \n 8,664 | \n \n \n 1,457 | \n \n \n 13,215 | \n \n \n \n \n (13,436) \n | \n \n \n 301,581 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Reinsurance contract liabilities | \n \n \n 396 | \n \n \n - | \n \n \n 211 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 608 | \n
| \n \n Insurance contract liabilities | \n \n \n 136,116 | \n \n \n 40,329 | \n \n \n 6,628 | \n \n \n - | \n \n \n - | \n \n \n \n \n (5,626) \n | \n \n \n 177,446 | \n
| \n \n Investment contracts with discretionary participating features | \n \n \n - | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Investment contracts without discretionary participating features | \n \n \n 35,181 | \n \n \n 40,085 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 75,266 | \n
| \n \n Liabilities held for sale / disposal groups | \n \n \n - | \n \n \n 389 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 389 | \n
| \n \n Other liabilities | \n \n \n 11,257 | \n \n \n 1,418 | \n \n \n 219 | \n \n \n 397 | \n \n \n 3,660 | \n \n \n \n \n (228) \n | \n \n \n 16,723 | \n
| \n \n Total liabilities | \n \n \n 182,950 | \n \n \n 103,815 | \n \n \n 7,058 | \n \n \n 397 | \n \n \n 3,660 | \n \n \n \n \n (5,854) \n | \n \n \n 292,026 | \n
Amounts included in the tables on investments are presented on an IFRS basis, which means that investments in joint ventures and associates are not consolidated on a proportionate basis. Instead, these investments are included on a single line using the equity method of accounting.
\n| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Holding and other activities | \n \n \n Eliminations | \n \n \n Total | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 256 | \n \n \n 15,196 | \n \n \n 54 | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n 15,515 | \n
| \n \n Debt securities | \n \n \n 52,572 | \n \n \n 6,952 | \n \n \n 1,279 | \n \n \n 88 | \n \n \n - | \n \n \n - | \n \n \n 60,890 | \n
| \n \n Unconsolidated investment funds | \n \n \n 101,401 | \n \n \n 91,172 | \n \n \n 202 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 192,775 | \n
| \n \n Loans | \n \n \n 10,679 | \n \n \n 2,051 | \n \n \n 2 | \n \n \n - | \n \n \n 11 | \n \n \n - | \n \n \n 12,743 | \n
| \n \n Other financial assets | \n \n \n 8,778 | \n \n \n 2,389 | \n \n \n 45 | \n \n \n 66 | \n \n \n - | \n \n \n - | \n \n \n 11,278 | \n
| \n \n Investments in real estate | \n \n \n 40 | \n \n \n 457 | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 514 | \n
| \n \n Total investments on balance sheet | \n \n \n 173,726 | \n \n \n 118,218 | \n \n \n 1,599 | \n \n \n 162 | \n \n \n 11 | \n \n \n - | \n \n \n 293,716 | \n
| \n \n Off-balance sheet investments third parties | \n \n \n 228,398 | \n \n \n 149,282 | \n \n \n 4,507 | \n \n \n 221,192 | \n \n \n - | \n \n \n - | \n \n \n 603,380 | \n
| \n \n Total revenue-generating investments | \n \n \n 402,124 | \n \n \n 267,500 | \n \n \n 6,106 | \n \n \n 221,354 | \n \n \n 11 | \n \n \n - | \n \n \n 897,096 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Backing insurance contracts without direct participation | \n \n \n 45,424 | \n \n \n - | \n \n \n 1,332 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 46,757 | \n
| \n \n Non-insurance related assets 1 | \n \n \n 7,906 | \n \n \n - | \n \n \n 7 | \n \n \n 46 | \n \n \n - | \n \n \n - | \n \n \n 7,959 | \n
| \n \n Financial assets measured at FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Backing direct participation insurance contracts | \n \n \n 73,233 | \n \n \n 43,712 | \n \n \n 222 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 117,167 | \n
| \n \n Backing insurance contracts without direct participation | \n \n \n 7,457 | \n \n \n 1,140 | \n \n \n 19 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8,616 | \n
| \n \n Backing direct participation investment contracts 1 | \n \n \n - | \n \n \n 23,687 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 23,687 | \n
| \n \n Non-insurance related assets 1 | \n \n \n 29,068 | \n \n \n 49,222 | \n \n \n - | \n \n \n 80 | \n \n \n - | \n \n \n - | \n \n \n 78,371 | \n
| \n \n Financial assets measured at amortized cost | \n \n \n 10,597 | \n \n \n - | \n \n \n 1 | \n \n \n 36 | \n \n \n 11 | \n \n \n - | \n \n \n 10,645 | \n
| \n \n Investments in real estate | \n \n \n 40 | \n \n \n 457 | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 514 | \n
| \n \n Total investments on balance sheet | \n \n \n 173,726 | \n \n \n 118,218 | \n \n \n 1,599 | \n \n \n 162 | \n \n \n 11 | \n \n \n - | \n \n \n 293,716 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments in joint ventures | \n \n \n - | \n \n \n - | \n \n \n 1,020 | \n \n \n 483 | \n \n \n - | \n \n \n - | \n \n \n 1,503 | \n
| \n \n Investments in associates | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 289 | \n \n \n 2,833 | \n \n \n - | \n \n \n 3,122 | \n
| \n \n Other assets | \n \n \n 24,234 | \n \n \n 1,836 | \n \n \n 5,459 | \n \n \n 600 | \n \n \n 10,167 | \n \n \n \n \n (13,247) \n | \n \n \n 29,049 | \n
| \n \n Consolidated total assets | \n \n \n 197,960 | \n \n \n 120,054 | \n \n \n 8,078 | \n \n \n 1,534 | \n \n \n 13,011 | \n \n \n \n \n (13,247) \n | \n \n \n 327,390 | \n
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Holding and other activities | \n \n \n Eliminations | \n \n \n Total | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 267 | \n \n \n 16,192 | \n \n \n 23 | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n 16,491 | \n
| \n \n Debt securities | \n \n \n 47,547 | \n \n \n 6,916 | \n \n \n 1,295 | \n \n \n 52 | \n \n \n - | \n \n \n - | \n \n \n 55,811 | \n
| \n \n Unconsolidated investment funds | \n \n \n 92,520 | \n \n \n 74,719 | \n \n \n 173 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 167,411 | \n
| \n \n Loans | \n \n \n 10,156 | \n \n \n 2,269 | \n \n \n 3 | \n \n \n - | \n \n \n 18 | \n \n \n - | \n \n \n 12,446 | \n
| \n \n Other financial assets | \n \n \n 11,187 | \n \n \n 2,266 | \n \n \n 166 | \n \n \n 115 | \n \n \n - | \n \n \n - | \n \n \n 13,735 | \n
| \n \n Investments in real estate | \n \n \n 38 | \n \n \n 433 | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 488 | \n
| \n \n Total investments on balance sheet | \n \n \n 161,715 | \n \n \n 102,795 | \n \n \n 1,678 | \n \n \n 176 | \n \n \n 18 | \n \n \n - | \n \n \n 266,382 | \n
| \n \n Off-balance sheet investments third parties | \n \n \n 225,090 | \n \n \n 135,270 | \n \n \n 3,711 | \n \n \n 195,304 | \n \n \n - | \n \n \n - | \n \n \n 559,375 | \n
| \n \n Total revenue-generating investments | \n \n \n 386,806 | \n \n \n 238,064 | \n \n \n 5,389 | \n \n \n 195,480 | \n \n \n 18 | \n \n \n - | \n \n \n 825,757 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Backing insurance contracts without direct participation | \n \n \n 42,973 | \n \n \n - | \n \n \n 1,439 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 44,412 | \n
| \n \n Backing investment contracts without direct participation | \n \n \n 5,854 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,854 | \n
| \n \n Non-insurance related assets | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 97 | \n \n \n - | \n \n \n - | \n \n \n 98 | \n
| \n \n Financial assets measured at FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Backing direct participation insurance contracts | \n \n \n 67,532 | \n \n \n 40,008 | \n \n \n 173 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 107,714 | \n
| \n \n Backing insurance contracts without direct participation | \n \n \n 9,696 | \n \n \n 1,243 | \n \n \n 27 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 10,967 | \n
| \n \n Backing direct participation investment contracts | \n \n \n 24,988 | \n \n \n 22,771 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 47,759 | \n
| \n \n Backing investment contracts without direct participation | \n \n \n 386 | \n \n \n - | \n \n \n 19 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 405 | \n
| \n \n Non-insurance related assets | \n \n \n 92 | \n \n \n 38,339 | \n \n \n - | \n \n \n 27 | \n \n \n - | \n \n \n - | \n \n \n 38,458 | \n
| \n \n Financial assets measured at amortized cost | \n \n \n 10,156 | \n \n \n - | \n \n \n 1 | \n \n \n 52 | \n \n \n 18 | \n \n \n - | \n \n \n 10,227 | \n
| \n \n Investments in real estate | \n \n \n 38 | \n \n \n 433 | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 488 | \n
| \n \n Total investments on balance sheet | \n \n \n 161,715 | \n \n \n 102,795 | \n \n \n 1,678 | \n \n \n 176 | \n \n \n 18 | \n \n \n - | \n \n \n 266,382 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments in joint ventures | \n \n \n - | \n \n \n - | \n \n \n 1,034 | \n \n \n 397 | \n \n \n - | \n \n \n - | \n \n \n 1,430 | \n
| \n \n Investments in associates | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n 279 | \n \n \n 2,622 | \n \n \n - | \n \n \n 2,906 | \n
| \n \n Other assets | \n \n \n 24,700 | \n \n \n 2,470 | \n \n \n 5,948 | \n \n \n 606 | \n \n \n 10,575 | \n \n \n \n \n (13,436) \n | \n \n \n 30,863 | \n
| \n \n Consolidated total assets | \n \n \n 186,415 | \n \n \n 105,265 | \n \n \n 8,664 | \n \n \n 1,457 | \n \n \n 13,215 | \n \n \n \n \n (13,436) \n | \n \n \n 301,581 | \n
| \n \n Summarized assets and liabilities per segment | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Eliminations | \n \n \n Total | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Direct participating contracts | \n \n \n 74,446 | \n \n \n 43,744 | \n \n \n 219 | \n \n \n - | \n \n \n 118,409 | \n
| \n \n Without direct participation contracts | \n \n \n 68,428 | \n \n \n 595 | \n \n \n 5,980 | \n \n \n \n \n (5,219) \n | \n \n \n 69,784 | \n
| \n \n Contracts measured under the PAA | \n \n \n - | \n \n \n - | \n \n \n 41 | \n \n \n - | \n \n \n 41 | \n
| \n \n Investment contracts with DPF | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Direct participating contracts | \n \n \n - | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
| \n \n Insurance contracts and investment contracts without participation features | \n \n \n 142,874 | \n \n \n 66,671 | \n \n \n 6,239 | \n \n \n \n \n (5,219) \n | \n \n \n 210,565 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Reinsurance contracts held | \n \n \n 15,878 | \n \n \n \n \n (2) \n | \n \n \n 4,975 | \n \n \n \n \n (5,133) \n | \n \n \n 15,719 | \n
| \n \n Summarized assets and liabilities per segment | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Eliminations | \n \n \n Total | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Direct participating contracts | \n \n \n 70,436 | \n \n \n 39,687 | \n \n \n 193 | \n \n \n - | \n \n \n 110,315 | \n
| \n \n Without direct participation contracts | \n \n \n 65,499 | \n \n \n 642 | \n \n \n 6,393 | \n \n \n \n \n (5,626) \n | \n \n \n 66,907 | \n
| \n \n Contracts measured under the PAA | \n \n \n - | \n \n \n - | \n \n \n 39 | \n \n \n - | \n \n \n 39 | \n
| \n \n Investment contracts with DPF | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Direct participating contracts | \n \n \n - | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Insurance contracts and investment contracts without participation features | \n \n \n 135,934 | \n \n \n 61,922 | \n \n \n 6,625 | \n \n \n \n \n (5,626) \n | \n \n \n 198,855 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Reinsurance contracts held | \n \n \n 16,166 | \n \n \n 2 | \n \n \n 5,445 | \n \n \n \n \n (5,613) \n | \n \n \n 16,000 | \n
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n Holding and other activities | \n \n \n Total | \n
| \n \n Year 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Number of employees - headcount 1 | \n \n \n 6,996 | \n \n \n 2,861 | \n \n \n 3,319 | \n \n \n 1,366 | \n \n \n 1,040 | \n \n \n 15,582 | \n
| \n \n Of which Aegon's share of employees in joint ventures and associates 2 | \n \n \n - | \n \n \n - | \n \n \n 2,552 | \n \n \n 226 | \n \n \n - | \n \n \n 2,778 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Year 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Number of employees - headcount 1 | \n \n \n 6,967 | \n \n \n 2,591 | \n \n \n 3,654 | \n \n \n 1,409 | \n \n \n 1,037 | \n \n \n 15,658 | \n
| \n \n Of which Aegon's share of employees in joint ventures and associates 2 | \n \n \n - | \n \n \n 49 | \n \n \n 2,936 | \n \n \n 219 | \n \n \n - | \n \n \n 3,204 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Year 2022 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Number of employees - headcount 1 | \n \n \n 6,153 | \n \n \n 2,621 | \n \n \n 4,281 | \n \n \n 1,464 | \n \n \n 958 | \n \n \n 15,478 | \n
| \n \n Of which Aegon's share of employees in joint ventures and associates | \n \n \n - | \n \n \n 62 | \n \n \n 3,239 | \n \n \n 206 | \n \n \n - | \n \n \n 3,507 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n \n Amounts related to changes in liability for remaining coverage | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n
| \n \n Expected insurance claims and expenses | \n \n \n 7,870 | \n \n \n 32 | \n \n \n 8,383 | \n \n \n 32 | \n \n \n 9,092 | \n \n \n 49 | \n
| \n \n Earnings released from contractual service margin | \n \n \n 958 | \n \n \n 33 | \n \n \n 952 | \n \n \n 17 | \n \n \n 1,029 | \n \n \n 11 | \n
| \n \n Release of risk adjustment for non-financial risk | \n \n \n 295 | \n \n \n 14 | \n \n \n 340 | \n \n \n 15 | \n \n \n 320 | \n \n \n 14 | \n
| \n \n Allocated portion of consideration that relates to recovery acquisition costs | \n \n \n 553 | \n \n \n - | \n \n \n 558 | \n \n \n - | \n \n \n 545 | \n \n \n - | \n
| \n \n Other | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n \n \n (42) \n | \n \n \n - | \n
| \n \n Contracts not measured under the PAA | \n \n \n 9,656 | \n \n \n 80 | \n \n \n 10,195 | \n \n \n 64 | \n \n \n 10,944 | \n \n \n 74 | \n
| \n \n Contracts measured under the PAA | \n \n \n 104 | \n \n \n - | \n \n \n 127 | \n \n \n - | \n \n \n 233 | \n \n \n - | \n
| \n \n Total Insurance revenue | \n \n \n 9,761 | \n \n \n 80 | \n \n \n 10,322 | \n \n \n 64 | \n \n \n 11,178 | \n \n \n 74 | \n
The following table shows the revenue recognized on insurance and investments contracts with discretionary participating features by transition method. Other contracts comprise contracts transitioned under the full retrospective approach and contracts issued after the transition to IFRS 17.
| \n \n Revenue recognized on contracts in-force on the transition date to IFRS 17 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Insurance contracts | \n \n | \n\n | \n\n | \n
| \n \n Related to contracts transitioned under the modified retrospective method | \n \n \n 529 | \n \n \n 514 | \n \n \n 559 | \n
| \n \n Related to contracts transitioned under the fair value approach | \n \n \n 8,053 | \n \n \n 8,707 | \n \n \n 9,513 | \n
| \n \n Other contracts | \n \n \n 1,178 | \n \n \n 1,101 | \n \n \n 1,105 | \n
| \n \n Total revenue reported in the period | \n \n \n 9,761 | \n \n \n 10,322 | \n \n \n 11,178 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts with discretionary participating features | \n \n | \n\n | \n\n | \n
| \n \n Related to contracts transitioned under the fair value approach | \n \n \n 80 | \n \n \n 64 | \n \n \n 74 | \n
| \n \n Total revenue reported in the period | \n \n \n 80 | \n \n \n 64 | \n \n \n 74 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,233 | \n \n \n - | \n \n \n 2,233 | \n
| \n \n Loans | \n \n \n - | \n \n \n 428 | \n \n \n - | \n \n \n 428 | \n
| \n \n Other | \n \n \n - | \n \n \n 60 | \n \n \n - | \n \n \n 60 | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,720 | \n \n \n - | \n \n \n 2,720 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,166 | \n \n \n - | \n \n \n 2,166 | \n
| \n \n Loans | \n \n \n - | \n \n \n 433 | \n \n \n - | \n \n \n 433 | \n
| \n \n Other | \n \n \n - | \n \n \n 139 | \n \n \n - | \n \n \n 139 | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,738 | \n \n \n - | \n \n \n 2,738 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,479 | \n \n \n - | \n \n \n 2,479 | \n
| \n \n Loans | \n \n \n - | \n \n \n 425 | \n \n \n - | \n \n \n 425 | \n
| \n \n Other | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (6) \n | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,898 | \n \n \n - | \n \n \n 2,898 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Derivatives to which hedge accounting was not applied | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 197 | \n \n \n 11 | \n \n \n 132 | \n \n \n 340 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 301 | \n \n \n - | \n \n \n 301 | \n
| \n \n On December 31 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 231 | \n \n \n 54 | \n \n \n 137 | \n \n \n 422 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 315 | \n \n \n - | \n \n \n 315 | \n
| \n \n On December 31 | \n \n \n 231 | \n \n \n 369 | \n \n \n 137 | \n \n \n 737 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 182 | \n \n \n 48 | \n \n \n 128 | \n \n \n 358 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 217 | \n \n \n - | \n \n \n 217 | \n
| \n \n On December 31 | \n \n \n 182 | \n \n \n 265 | \n \n \n 128 | \n \n \n 575 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Dividend income | \n \n \n 801 | \n \n \n 12 | \n \n \n 504 | \n \n \n 1,317 | \n
| \n \n Rental income | \n \n \n 15 | \n \n \n \n \n (2) \n | \n \n \n 10 | \n \n \n 23 | \n
| \n \n On December 31 | \n \n \n 816 | \n \n \n 10 | \n \n \n 514 | \n \n \n 1,340 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Dividend income | \n \n \n 828 | \n \n \n 12 | \n \n \n 417 | \n \n \n 1,257 | \n
| \n \n Rental income | \n \n \n 17 | \n \n \n \n \n (2) \n | \n \n \n 11 | \n \n \n 26 | \n
| \n \n On December 31 | \n \n \n 845 | \n \n \n 11 | \n \n \n 427 | \n \n \n 1,283 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Dividend income | \n \n \n 680 | \n \n \n 28 | \n \n \n 407 | \n \n \n 1,115 | \n
| \n \n Rental income | \n \n \n 20 | \n \n \n 4 | \n \n \n 14 | \n \n \n 38 | \n
| \n \n On December 31 | \n \n \n 701 | \n \n \n 31 | \n \n \n 421 | \n \n \n 1,153 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Debt securities and money market instruments | \n \n \n 484 | \n \n \n 457 | \n \n \n 405 | \n
| \n \n Other | \n \n \n 121 | \n \n \n 142 | \n \n \n 3 | \n
| \n \n On December 31 | \n \n \n 605 | \n \n \n 599 | \n \n \n 409 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 65 | \n \n \n 89 | \n \n \n 49 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n 13 | \n \n \n - | \n \n \n - | \n
| \n \n Non-derivative assets - PH designated | \n \n \n 108 | \n \n \n - | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 186 | \n \n \n 89 | \n \n \n 49 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Dividend income | \n \n \n 724 | \n \n \n 547 | \n \n \n 410 | \n
| \n \n Rental income | \n \n \n 4 | \n \n \n 3 | \n \n \n 1 | \n
| \n \n On December 31 | \n \n \n 729 | \n \n \n 550 | \n \n \n 411 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Fee from asset management and insurance distribution | \n \n \n 2,097 | \n \n \n 1,967 | \n \n \n 2,079 | \n
| \n \n Sales commission | \n \n \n 55 | \n \n \n 21 | \n \n \n 23 | \n
| \n \n Other fee and commission income | \n \n \n 226 | \n \n \n 174 | \n \n \n 171 | \n
| \n \n On December 31 | \n \n \n 2,378 | \n \n \n 2,163 | \n \n \n 2,272 | \n
| \n \n Included in fees and commission income: | \n \n | \n\n | \n\n | \n
| \n \n Fees on trust and fiduciary activities | \n \n \n 253 | \n \n \n 220 | \n \n \n 248 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n \n Amounts related to changes in liability for remaining coverage | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n
| \n \n Expected insurance claims and expenses | \n \n \n 7,870 | \n \n \n 32 | \n \n \n 8,383 | \n \n \n 32 | \n \n \n 9,092 | \n \n \n 49 | \n
| \n \n Earnings released from contractual service margin | \n \n \n 958 | \n \n \n 33 | \n \n \n 952 | \n \n \n 17 | \n \n \n 1,029 | \n \n \n 11 | \n
| \n \n Release of risk adjustment for non-financial risk | \n \n \n 295 | \n \n \n 14 | \n \n \n 340 | \n \n \n 15 | \n \n \n 320 | \n \n \n 14 | \n
| \n \n Allocated portion of consideration that relates to recovery acquisition costs | \n \n \n 553 | \n \n \n - | \n \n \n 558 | \n \n \n - | \n \n \n 545 | \n \n \n - | \n
| \n \n Other | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n \n \n (42) \n | \n \n \n - | \n
| \n \n Contracts not measured under the PAA | \n \n \n 9,656 | \n \n \n 80 | \n \n \n 10,195 | \n \n \n 64 | \n \n \n 10,944 | \n \n \n 74 | \n
| \n \n Contracts measured under the PAA | \n \n \n 104 | \n \n \n - | \n \n \n 127 | \n \n \n - | \n \n \n 233 | \n \n \n - | \n
| \n \n Total Insurance revenue | \n \n \n 9,761 | \n \n \n 80 | \n \n \n 10,322 | \n \n \n 64 | \n \n \n 11,178 | \n \n \n 74 | \n
The following table shows the revenue recognized on insurance and investments contracts with discretionary participating features by transition method. Other contracts comprise contracts transitioned under the full retrospective approach and contracts issued after the transition to IFRS 17.
| \n \n Revenue recognized on contracts in-force on the transition date to IFRS 17 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Insurance contracts | \n \n | \n\n | \n\n | \n
| \n \n Related to contracts transitioned under the modified retrospective method | \n \n \n 529 | \n \n \n 514 | \n \n \n 559 | \n
| \n \n Related to contracts transitioned under the fair value approach | \n \n \n 8,053 | \n \n \n 8,707 | \n \n \n 9,513 | \n
| \n \n Other contracts | \n \n \n 1,178 | \n \n \n 1,101 | \n \n \n 1,105 | \n
| \n \n Total revenue reported in the period | \n \n \n 9,761 | \n \n \n 10,322 | \n \n \n 11,178 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts with discretionary participating features | \n \n | \n\n | \n\n | \n
| \n \n Related to contracts transitioned under the fair value approach | \n \n \n 80 | \n \n \n 64 | \n \n \n 74 | \n
| \n \n Total revenue reported in the period | \n \n \n 80 | \n \n \n 64 | \n \n \n 74 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n
| \n \n Incurred claims and other incurred insurance service expenses | \n \n \n \n \n (7,954) \n | \n \n \n \n \n (43) \n | \n \n \n \n \n (8,404) \n | \n \n \n \n \n (36) \n | \n \n \n \n \n (9,030) \n | \n \n \n \n \n (54) \n | \n
| \n \n Changes in fulfilment cash flows relating to incurred claims | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n 8 | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n \n \n (1,109) \n | \n \n \n - | \n \n \n \n \n (1,079) \n | \n \n \n - | \n \n \n \n \n (1,247) \n | \n \n \n - | \n
| \n \n Amortization of insurance acquisition costs | \n \n \n \n \n (553) \n | \n \n \n - | \n \n \n \n \n (558) \n | \n \n \n - | \n \n \n \n \n (545) \n | \n \n \n - | \n
| \n \n Contracts not measured under the PAA | \n \n \n \n \n (9,629) \n | \n \n \n \n \n (43) \n | \n \n \n \n \n (10,058) \n | \n \n \n \n \n (36) \n | \n \n \n \n \n (10,815) \n | \n \n \n \n \n (54) \n | \n
| \n \n Contracts measured under the PAA | \n \n \n \n \n (118) \n | \n \n \n - | \n \n \n \n \n (132) \n | \n \n \n - | \n \n \n \n \n (228) \n | \n \n \n - | \n
| \n \n Total insurance service expenses | \n \n \n \n \n (9,747) \n | \n \n \n \n \n (43) \n | \n \n \n \n \n (10,190) \n | \n \n \n \n \n (36) \n | \n \n \n \n \n (11,043) \n | \n \n \n \n \n (54) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Assumption changes that relate to (a reversal of) underlying onerous contracts | \n \n \n 56 | \n \n \n 31 | \n \n \n 38 | \n
| \n \n Experience adjustments that relate to (a reversal of) underlying onerous contracts | \n \n \n 398 | \n \n \n 516 | \n \n \n 562 | \n
| \n \n Release of the contractual service margin for services received | \n \n \n \n \n (14) \n | \n \n \n \n \n (26) \n | \n \n \n 63 | \n
| \n \n Release of risk adjustment for non-financial risk | \n \n \n \n \n (83) \n | \n \n \n \n \n (118) \n | \n \n \n \n \n (134) \n | \n
| \n \n Experience adjustments on current service | \n \n \n \n \n (36) \n | \n \n \n \n \n (217) \n | \n \n \n \n \n (280) \n | \n
| \n \n Changes in fulfilment cash flows relating to incurred claims | \n \n \n 3 | \n \n \n \n \n (2) \n | \n \n \n \n \n (12) \n | \n
| \n \n \n \n Loss on retrospective reinsurance (reinsurance purchased relating to incurred claims) \n | \n \n \n 1 | \n \n \n \n \n (17) \n | \n \n \n - | \n
| \n \n New contracts issued/acquired: loss on initial recognition of underlying contracts | \n \n \n - | \n \n \n 12 | \n \n \n 31 | \n
| \n \n Establishing of loss recovery component from onerous underlying contracts | \n \n \n - | \n \n \n 7 | \n \n \n 8 | \n
| \n \n Reversals of a loss-recovery component other than changes in the FCF of reinsurance contracts held | \n \n \n \n \n (1) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n
| \n \n Contracts not measured under the PAA | \n \n \n 325 | \n \n \n 181 | \n \n \n 274 | \n
| \n \n Contracts measured under the PAA | \n \n \n - | \n \n \n 1 | \n \n \n 1 | \n
| \n \n Net income / (expenses) on reinsurance held | \n \n \n 325 | \n \n \n 182 | \n \n \n 275 | \n
| \n | \n\n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Insurance investment return | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest revenue on financial instruments calculated using the effective interest method | \n \n \n 9.1 | \n \n \n - | \n \n \n 2,720 | \n \n \n - | \n \n \n 2,720 | \n
| \n \n Interest revenue on financial instruments measured at FVPL | \n \n \n 9.2 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \n
| \n \n Other investment income | \n \n \n 9.3 | \n \n \n 816 | \n \n \n 10 | \n \n \n 514 | \n \n \n 1,340 | \n
| \n \n Results from financial transactions | \n \n \n 9.4 | \n \n \n 10,192 | \n \n \n \n \n (223) \n | \n \n \n 1,624 | \n \n \n 11,593 | \n
| \n \n Impairment (losses) / reversals | \n \n \n 9.5 | \n \n \n - | \n \n \n \n \n (190) \n | \n \n \n - | \n \n \n \n \n (190) \n | \n
| \n \n Interest expenses | \n \n | \n\n \n - | \n \n \n \n \n (171) \n | \n \n \n - | \n \n \n \n \n (171) \n | \n
| \n \n P&L impacts | \n \n | \n\n \n 11,204 | \n \n \n 2,454 | \n \n \n 2,271 | \n \n \n 15,929 | \n
| \n \n Gains / (losses) on investments in equity instruments designated at FVOCI | \n \n | \n\n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n \n Gains / (losses) on financial assets measured at FVOCI | \n \n | \n\n \n - | \n \n \n \n \n (1,101) \n | \n \n \n - | \n \n \n \n \n (1,101) \n | \n
| \n \n Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | \n \n | \n\n \n - | \n \n \n 70 | \n \n \n - | \n \n \n 70 | \n
| \n \n OCI impacts | \n \n | \n\n \n - | \n \n \n \n \n (1,030) \n | \n \n \n - | \n \n \n \n \n (1,030) \n | \n
| \n \n Total insurance investment return | \n \n | \n\n \n 11,204 | \n \n \n 1,424 | \n \n \n 2,271 | \n \n \n 14,899 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance finance income / (expenses) \u2013 General model | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n | \n\n \n - | \n \n \n \n \n (3,096) \n | \n \n \n - | \n \n \n \n \n (3,096) \n | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n | \n\n \n - | \n \n \n 1,921 | \n \n \n - | \n \n \n 1,921 | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n | \n\n \n - | \n \n \n \n \n (121) \n | \n \n \n - | \n \n \n \n \n (121) \n | \n
| \n \n Insurance finance income / (expenses) \u2013 Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of underlying assets of products with direct participating features | \n \n | \n\n \n \n \n (12,719) \n | \n \n \n - | \n \n \n \n \n (2,270) \n | \n \n \n \n \n (14,990) \n | \n
| \n \n Change in fulfilment value not recognized in CSM due to risk mitigation option | \n \n | \n\n \n 2,029 | \n \n \n - | \n \n \n - | \n \n \n 2,029 | \n
| \n \n \n \n Total insurance finance income / (expenses) \n | \n \n | \n\n \n \n \n (10,690) \n | \n \n \n \n \n (1,296) \n | \n \n \n \n \n (2,270) \n | \n \n \n \n \n (14,256) \n | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts recognized in profit or loss | \n \n | \n\n \n \n \n (10,699) \n | \n \n \n \n \n (3,537) \n | \n \n \n \n \n (2,270) \n | \n \n \n \n \n (16,506) \n | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n 9 | \n \n \n 2,241 | \n \n \n - | \n \n \n 2,250 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Reinsurance finance income / (expenses) on reinsurance held | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to reinsurance contracts | \n \n | \n\n \n - | \n \n \n 606 | \n \n \n - | \n \n \n 606 | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n | \n\n \n - | \n \n \n \n \n (627) \n | \n \n \n - | \n \n \n \n \n (627) \n | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n | \n\n \n - | \n \n \n 82 | \n \n \n - | \n \n \n 82 | \n
| \n \n Changes in risk of non-performance of reinsurers | \n \n | \n\n \n - | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (5) \n | \n
| \n \n Reinsurance finance income / (expenses) on reinsurance held | \n \n | \n\n \n - | \n \n \n 55 | \n \n \n - | \n \n \n 55 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts recognized in profit or loss | \n \n | \n\n \n - | \n \n \n 611 | \n \n \n - | \n \n \n 611 | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n - | \n \n \n \n \n (556) \n | \n \n \n - | \n \n \n \n \n (556) \n | \n
| \n \n Insurance net investment result | \n \n | \n\n \n 514 | \n \n \n 183 | \n \n \n - | \n \n \n 697 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts recognized in profit or loss | \n \n | \n\n \n 505 | \n \n \n \n \n (472) \n | \n \n \n - | \n \n \n 34 | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n 9 | \n \n \n 655 | \n \n \n - | \n \n \n 663 | \n
| \n | \n\n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Insurance investment return | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest revenue on financial instruments calculated using the effective interest method | \n \n \n 9.1 | \n \n \n - | \n \n \n 2,738 | \n \n \n - | \n \n \n 2,738 | \n
| \n \n Interest revenue on financial instruments measured at FVPL | \n \n \n 9.2 | \n \n \n 231 | \n \n \n 369 | \n \n \n 137 | \n \n \n 737 | \n
| \n \n Other investment income | \n \n \n 9.3 | \n \n \n 845 | \n \n \n 11 | \n \n \n 427 | \n \n \n 1,283 | \n
| \n \n Results from financial transactions | \n \n \n 9.4 | \n \n \n 11,446 | \n \n \n \n \n (467) \n | \n \n \n 1,322 | \n \n \n 12,302 | \n
| \n \n Impairment (losses) / reversals | \n \n \n 9.5 | \n \n \n - | \n \n \n \n \n (86) \n | \n \n \n - | \n \n \n \n \n (86) \n | \n
| \n \n Interest expenses | \n \n | \n\n \n - | \n \n \n \n \n (218) \n | \n \n \n - | \n \n \n \n \n (218) \n | \n
| \n \n P&L impacts | \n \n | \n\n \n 12,523 | \n \n \n 2,347 | \n \n \n 1,886 | \n \n \n 16,756 | \n
| \n \n Gains / (losses) on financial assets measured at FVOCI | \n \n | \n\n \n - | \n \n \n 1,311 | \n \n \n - | \n \n \n 1,311 | \n
| \n \n Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | \n \n | \n\n \n - | \n \n \n 577 | \n \n \n - | \n \n \n 577 | \n
| \n \n OCI impacts | \n \n | \n\n \n - | \n \n \n 1,888 | \n \n \n - | \n \n \n 1,888 | \n
| \n \n Total insurance investment return | \n \n | \n\n \n 12,523 | \n \n \n 4,235 | \n \n \n 1,886 | \n \n \n 18,644 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance finance income / (expenses) \u2013 General model | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n | \n\n \n - | \n \n \n \n \n (3,098) \n | \n \n \n - | \n \n \n \n \n (3,098) \n | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n | \n\n \n - | \n \n \n \n \n (1,587) \n | \n \n \n - | \n \n \n \n \n (1,587) \n | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n | \n\n \n - | \n \n \n \n \n (421) \n | \n \n \n - | \n \n \n \n \n (421) \n | \n
| \n \n Insurance finance income / (expenses) \u2013 Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of underlying assets of products with direct participating features | \n \n | \n\n \n \n \n (13,730) \n | \n \n \n - | \n \n \n \n \n (1,921) \n | \n \n \n \n \n (15,651) \n | \n
| \n \n Change in fulfilment value not recognized in CSM due to risk mitigation option | \n \n | \n\n \n 1,493 | \n \n \n - | \n \n \n - | \n \n \n 1,493 | \n
| \n \n Insurance finance income / (expenses) \u2013 Premium allocation approach | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance finance expenses from PAA contracts | \n \n | \n\n \n - | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n \n \n (12) \n | \n
| \n \n \n \n Total insurance finance income / (expenses) \n | \n \n | \n\n \n \n \n (12,237) \n | \n \n \n \n \n (5,118) \n | \n \n \n \n \n (1,921) \n | \n \n \n \n \n (19,276) \n | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts recognized in profit or loss | \n \n | \n\n \n \n \n (12,244) \n | \n \n \n \n \n (3,485) \n | \n \n \n \n \n (1,921) \n | \n \n \n \n \n (17,650) \n | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n 7 | \n \n \n \n \n (1,633) \n | \n \n \n - | \n \n \n \n \n (1,626) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Reinsurance finance income / (expenses) on reinsurance held | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to reinsurance contracts | \n \n | \n\n \n - | \n \n \n 630 | \n \n \n - | \n \n \n 630 | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n | \n\n \n - | \n \n \n 283 | \n \n \n - | \n \n \n 283 | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n | \n\n \n - | \n \n \n 148 | \n \n \n - | \n \n \n 148 | \n
| \n \n Changes in risk of non-performance of reinsurers | \n \n | \n\n \n - | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n \n \n (12) \n | \n
| \n \n Reinsurance finance income / (expenses) on reinsurance held | \n \n | \n\n \n - | \n \n \n 1,048 | \n \n \n - | \n \n \n 1,048 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts recognized in profit or loss | \n \n | \n\n \n - | \n \n \n 699 | \n \n \n - | \n \n \n 699 | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n - | \n \n \n 349 | \n \n \n - | \n \n \n 349 | \n
| \n \n Insurance net investment result | \n \n | \n\n \n 285 | \n \n \n 165 | \n \n \n \n \n (34) \n | \n \n \n 415 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts recognized in profit or loss | \n \n | \n\n \n 278 | \n \n \n \n \n (440) \n | \n \n \n \n \n (34) \n | \n \n \n \n \n (196) \n | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n 7 | \n \n \n 604 | \n \n \n - | \n \n \n 611 | \n
| \n | \n\n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Insurance investment return | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest revenue on financial instruments calculated using the effective interest method | \n \n \n 9.1 | \n \n \n - | \n \n \n 2,898 | \n \n \n - | \n \n \n 2,898 | \n
| \n \n Interest revenue on financial instruments measured at FVPL | \n \n \n 9.2 | \n \n \n 182 | \n \n \n 265 | \n \n \n 128 | \n \n \n 575 | \n
| \n \n Other investment income | \n \n \n 9.3 | \n \n \n 701 | \n \n \n 31 | \n \n \n 421 | \n \n \n 1,153 | \n
| \n \n Results from financial transactions | \n \n \n 9.4 | \n \n \n \n \n (24,716) \n | \n \n \n \n \n (909) \n | \n \n \n \n \n (3,880) \n | \n \n \n \n \n (29,505) \n | \n
| \n \n Impairment (losses) / reversals | \n \n \n 9.5 | \n \n \n - | \n \n \n \n \n (95) \n | \n \n \n - | \n \n \n \n \n (95) \n | \n
| \n \n Interest expenses | \n \n | \n\n \n - | \n \n \n \n \n (97) \n | \n \n \n - | \n \n \n \n \n (97) \n | \n
| \n \n P&L impacts | \n \n | \n\n \n \n \n (23,833) \n | \n \n \n 2,092 | \n \n \n \n \n (3,331) \n | \n \n \n \n \n (25,072) \n | \n
| \n \n Gains / (losses) on investments in equity instruments designated at FVOCI | \n \n | \n\n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n \n Gains / (losses) on financial assets measured at FVOCI | \n \n | \n\n \n - | \n \n \n \n \n (14,571) \n | \n \n \n - | \n \n \n \n \n (14,571) \n | \n
| \n \n Gains / (losses) transferred to income statement on disposal of financial assets measured at FVOCI | \n \n | \n\n \n - | \n \n \n 488 | \n \n \n - | \n \n \n 488 | \n
| \n \n OCI impacts | \n \n | \n\n \n - | \n \n \n \n \n (14,081) \n | \n \n \n - | \n \n \n \n \n (14,081) \n | \n
| \n \n Total insurance investment return | \n \n | \n\n \n \n \n (23,833) \n | \n \n \n \n \n (11,989) \n | \n \n \n \n \n (3,331) \n | \n \n \n \n \n (39,153) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance finance income / (expenses) \u2013 General model | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n | \n\n \n - | \n \n \n \n \n (3,045) \n | \n \n \n - | \n \n \n \n \n (3,045) \n | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n | \n\n \n - | \n \n \n 18,495 | \n \n \n - | \n \n \n 18,495 | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n | \n\n \n - | \n \n \n 786 | \n \n \n - | \n \n \n 786 | \n
| \n \n Insurance finance income / (expenses) \u2013 Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of underlying assets of products with direct participating features | \n \n | \n\n \n 20,886 | \n \n \n - | \n \n \n 3,247 | \n \n \n 24,133 | \n
| \n \n Change in fulfilment value not recognized in CSM due to risk mitigation option | \n \n | \n\n \n 3,323 | \n \n \n - | \n \n \n - | \n \n \n 3,323 | \n
| \n \n Insurance finance income / (expenses) \u2013 Premium allocation approach | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance finance expenses from PAA contracts | \n \n | \n\n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n
| \n \n \n \n Total insurance finance income / (expenses) \n | \n \n | \n\n \n 24,208 | \n \n \n 16,230 | \n \n \n 3,247 | \n \n \n 43,685 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts recognized in profit or loss | \n \n | \n\n \n 24,233 | \n \n \n \n \n (2,475) \n | \n \n \n 3,247 | \n \n \n 25,005 | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n \n \n (25) \n | \n \n \n 18,705 | \n \n \n - | \n \n \n 18,680 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Reinsurance finance income / (expenses) on reinsurance held | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to reinsurance contracts | \n \n | \n\n \n - | \n \n \n 660 | \n \n \n - | \n \n \n 660 | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n | \n\n \n - | \n \n \n \n \n (4,469) \n | \n \n \n - | \n \n \n \n \n (4,469) \n | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n | \n\n \n - | \n \n \n \n \n (267) \n | \n \n \n - | \n \n \n \n \n (267) \n | \n
| \n \n Changes in risk of non-performance of reinsurers | \n \n | \n\n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n
| \n \n Reinsurance finance income / (expenses) on reinsurance held | \n \n | \n\n \n - | \n \n \n \n \n (4,073) \n | \n \n \n - | \n \n \n \n \n (4,073) \n | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts recognized in profit or loss | \n \n | \n\n \n - | \n \n \n 599 | \n \n \n - | \n \n \n 599 | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n - | \n \n \n \n \n (4,672) \n | \n \n \n - | \n \n \n \n \n (4,672) \n | \n
| \n \n Insurance net investment result | \n \n | \n\n \n 375 | \n \n \n 168 | \n \n \n \n \n (84) \n | \n \n \n 458 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts recognized in profit or loss | \n \n | \n\n \n 400 | \n \n \n 217 | \n \n \n \n \n (84) \n | \n \n \n 532 | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n \n \n (25) \n | \n \n \n \n \n (49) \n | \n \n \n - | \n \n \n \n \n (74) \n | \n
During the reporting period, Aegon did not change the basis of disaggregation of insurance finance income / (expenses) between the Income statement and OCI.
\n| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,233 | \n \n \n - | \n \n \n 2,233 | \n
| \n \n Loans | \n \n \n - | \n \n \n 428 | \n \n \n - | \n \n \n 428 | \n
| \n \n Other | \n \n \n - | \n \n \n 60 | \n \n \n - | \n \n \n 60 | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,720 | \n \n \n - | \n \n \n 2,720 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,166 | \n \n \n - | \n \n \n 2,166 | \n
| \n \n Loans | \n \n \n - | \n \n \n 433 | \n \n \n - | \n \n \n 433 | \n
| \n \n Other | \n \n \n - | \n \n \n 139 | \n \n \n - | \n \n \n 139 | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,738 | \n \n \n - | \n \n \n 2,738 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,479 | \n \n \n - | \n \n \n 2,479 | \n
| \n \n Loans | \n \n \n - | \n \n \n 425 | \n \n \n - | \n \n \n 425 | \n
| \n \n Other | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (6) \n | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,898 | \n \n \n - | \n \n \n 2,898 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Derivatives to which hedge accounting was not applied | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 197 | \n \n \n 11 | \n \n \n 132 | \n \n \n 340 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 301 | \n \n \n - | \n \n \n 301 | \n
| \n \n On December 31 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 231 | \n \n \n 54 | \n \n \n 137 | \n \n \n 422 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 315 | \n \n \n - | \n \n \n 315 | \n
| \n \n On December 31 | \n \n \n 231 | \n \n \n 369 | \n \n \n 137 | \n \n \n 737 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 182 | \n \n \n 48 | \n \n \n 128 | \n \n \n 358 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 217 | \n \n \n - | \n \n \n 217 | \n
| \n \n On December 31 | \n \n \n 182 | \n \n \n 265 | \n \n \n 128 | \n \n \n 575 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Dividend income | \n \n \n 801 | \n \n \n 12 | \n \n \n 504 | \n \n \n 1,317 | \n
| \n \n Rental income | \n \n \n 15 | \n \n \n \n \n (2) \n | \n \n \n 10 | \n \n \n 23 | \n
| \n \n On December 31 | \n \n \n 816 | \n \n \n 10 | \n \n \n 514 | \n \n \n 1,340 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Dividend income | \n \n \n 828 | \n \n \n 12 | \n \n \n 417 | \n \n \n 1,257 | \n
| \n \n Rental income | \n \n \n 17 | \n \n \n \n \n (2) \n | \n \n \n 11 | \n \n \n 26 | \n
| \n \n On December 31 | \n \n \n 845 | \n \n \n 11 | \n \n \n 427 | \n \n \n 1,283 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Dividend income | \n \n \n 680 | \n \n \n 28 | \n \n \n 407 | \n \n \n 1,115 | \n
| \n \n Rental income | \n \n \n 20 | \n \n \n 4 | \n \n \n 14 | \n \n \n 38 | \n
| \n \n On December 31 | \n \n \n 701 | \n \n \n 31 | \n \n \n 421 | \n \n \n 1,153 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 996 | \n \n \n \n \n (4) \n | \n \n \n 639 | \n \n \n 1,632 | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (164) \n | \n \n \n \n \n (1,145) \n | \n \n \n \n \n (107) \n | \n \n \n \n \n (1,416) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n 10,819 | \n \n \n - | \n \n \n 1,215 | \n \n \n 12,034 | \n
| \n \n Other | \n \n \n - | \n \n \n \n \n (90) \n | \n \n \n - | \n \n \n \n \n (90) \n | \n
| \n | \n\n \n 11,651 | \n \n \n \n \n (1,240) \n | \n \n \n 1,748 | \n \n \n 12,159 | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (167) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (311) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (1,297) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,297) \n | \n
| \n | \n\n \n \n \n (1,464) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (1,608) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n | \n\n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Investments measured at fair value through other comprehensive income (\"FVOCI\") \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n 5 | \n \n \n - | \n \n \n 3 | \n \n \n 8 | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n | \n\n \n 5 | \n \n \n 1 | \n \n \n 3 | \n \n \n 9 | \n
| \n \n On December 31 | \n \n \n 10,192 | \n \n \n \n \n (1,253) \n | \n \n \n 1,624 | \n \n \n 10,563 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 11,655 | \n \n \n \n \n (127) \n | \n \n \n 1,751 | \n \n \n 13,280 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (1,464) \n | \n \n \n \n \n (96) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (1,686) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n \n \n (1,030) \n | \n \n \n - | \n \n \n \n \n (1,030) \n | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 800 | \n \n \n 13 | \n \n \n 413 | \n \n \n 1,225 | \n
| \n \n Debt securities and money market investments | \n \n \n 55 | \n \n \n 1,366 | \n \n \n 36 | \n \n \n 1,457 | \n
| \n \n Unconsolidated investment funds | \n \n \n 11,800 | \n \n \n 11 | \n \n \n 939 | \n \n \n 12,750 | \n
| \n \n Other | \n \n \n - | \n \n \n 15 | \n \n \n - | \n \n \n 15 | \n
| \n | \n\n \n 12,655 | \n \n \n 1,404 | \n \n \n 1,388 | \n \n \n 15,447 | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (95) \n | \n \n \n 29 | \n \n \n \n \n (48) \n | \n \n \n \n \n (114) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (1,085) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,085) \n | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n
| \n | \n\n \n \n \n (1,181) \n | \n \n \n 31 | \n \n \n \n \n (48) \n | \n \n \n \n \n (1,197) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Loans | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n | \n\n \n - | \n \n \n \n \n (16) \n | \n \n \n - | \n \n \n \n \n (16) \n | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n \n \n (28) \n | \n \n \n - | \n \n \n \n \n (18) \n | \n \n \n \n \n (46) \n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n | \n\n \n \n \n (28) \n | \n \n \n 2 | \n \n \n \n \n (18) \n | \n \n \n \n \n (44) \n | \n
| \n \n On December 31 | \n \n \n 11,446 | \n \n \n 1,421 | \n \n \n 1,322 | \n \n \n 14,190 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 12,627 | \n \n \n \n \n (562) \n | \n \n \n 1,370 | \n \n \n 13,435 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (1,181) \n | \n \n \n 95 | \n \n \n \n \n (48) \n | \n \n \n \n \n (1,134) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n 1,888 | \n \n \n - | \n \n \n 1,888 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Net fair value change of financial investments at fair value through profit or loss, other than derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n \n \n (1,566) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (950) \n | \n \n \n \n \n (2,548) \n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (1,153) \n | \n \n \n \n \n (14,958) \n | \n \n \n \n \n (737) \n | \n \n \n \n \n (16,847) \n | \n
| \n \n Unconsolidated investment funds | \n \n \n \n \n (18,538) \n | \n \n \n \n \n (38) \n | \n \n \n \n \n (1,785) \n | \n \n \n \n \n (20,360) \n | \n
| \n \n Other | \n \n \n - | \n \n \n 329 | \n \n \n - | \n \n \n 329 | \n
| \n | \n\n \n \n \n (21,256) \n | \n \n \n \n \n (14,699) \n | \n \n \n \n \n (3,471) \n | \n \n \n \n \n (39,427) \n | \n
| \n \n Net fair value change of derivatives | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Economic hedges where no hedge accounting is applied | \n \n \n \n \n (333) \n | \n \n \n \n \n (361) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (1,080) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Change in fair value of hedges on guarantees in products with direct participating features | \n \n \n \n \n (3,093) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,093) \n | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n \n \n (3) \n | \n
| \n | \n\n \n \n \n (3,427) \n | \n \n \n \n \n (364) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (4,176) \n | \n
| \n \n Realized gains and (losses) on financial investments | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Loans | \n \n \n - | \n \n \n 36 | \n \n \n - | \n \n \n 36 | \n
| \n | \n\n \n - | \n \n \n 35 | \n \n \n - | \n \n \n 35 | \n
| \n \n Realized gains and (losses) on financial investments comprised of: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 36 | \n \n \n - | \n \n \n 36 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n \n \n (33) \n | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n \n \n (56) \n | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n \n \n \n Net foreign currency gains and (losses) \n | \n \n \n - | \n \n \n 37 | \n \n \n - | \n \n \n 37 | \n
| \n | \n\n \n \n \n (33) \n | \n \n \n 38 | \n \n \n \n \n (23) \n | \n \n \n \n \n (18) \n | \n
| \n \n On December 31 | \n \n \n \n \n (24,716) \n | \n \n \n \n \n (14,990) \n | \n \n \n \n \n (3,880) \n | \n \n \n \n \n (43,586) \n | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n \n \n (21,289) \n | \n \n \n \n \n (714) \n | \n \n \n \n \n (3,495) \n | \n \n \n \n \n (25,498) \n | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (3,427) \n | \n \n \n \n \n (194) \n | \n \n \n \n \n (385) \n | \n \n \n \n \n (4,006) \n | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n - | \n \n \n \n \n (14,081) \n | \n \n \n - | \n \n \n \n \n (14,081) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Impairment losses on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (103) \n | \n \n \n \n \n (77) \n | \n \n \n \n \n (121) \n | \n
| \n \n Loans | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \n \n \n 10 | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Impairment reversals on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n 3 | \n \n \n 37 | \n \n \n 26 | \n
| \n \n Impairment (losses) and reversals on non-financial assets and receivables | \n \n \n \n \n (3) \n | \n \n \n \n \n (31) \n | \n \n \n \n \n (17) \n | \n
| \n \n On December 31 | \n \n \n \n \n (190) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (95) \n | \n
Impairment losses in 2024 increased by EUR 104 million to EUR 190 million mainly due to expected credit loss (ECL) balance increases in Aegon US for bonds and mortgages following more adverse economic scenario output and real estate occupancy rates.
\nThe following tables show the assets and liabilities for groups of insurance contracts issued and reinsurance contracts held by measurement model.
| \n \n Insurance contracts | \n \n \n Contracts not measured under the PAA | \n \n \n Contracts measured under the PAA | \n \n \n Total | \n
| \n \n Portfolios in an asset position | \n \n \n 125 | \n \n \n - | \n \n \n 125 | \n
| \n \n Portfolios in a liability position | \n \n \n 188,318 | \n \n \n 41 | \n \n \n 188,359 | \n
| \n \n Net balance, on December 31, 2024 | \n \n \n 188,193 | \n \n \n 41 | \n \n \n 188,233 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Portfolios in an asset position | \n \n \n 185 | \n \n \n - | \n \n \n 185 | \n
| \n \n Portfolios in a liability position | \n \n \n 177,407 | \n \n \n 39 | \n \n \n 177,446 | \n
| \n \n Net balance, on December 31, 2023 | \n \n \n 177,222 | \n \n \n 39 | \n \n \n 177,262 | \n
| \n \n Reinsurance contracts held | \n \n \n Contracts not measured under the PAA | \n \n \n Contracts measured under the PAA | \n \n \n Total | \n
| \n \n Portfolios in an asset position | \n \n \n 16,015 | \n \n \n 7 | \n \n \n 16,021 | \n
| \n \n Portfolios in a liability position | \n \n \n 303 | \n \n \n - | \n \n \n 303 | \n
| \n \n On December 31, 2024 | \n \n \n 15,712 | \n \n \n 7 | \n \n \n 15,719 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Portfolios in an asset position | \n \n \n 16,601 | \n \n \n 7 | \n \n \n 16,608 | \n
| \n \n Portfolios in a liability position | \n \n \n 608 | \n \n \n - | \n \n \n 608 | \n
| \n \n On December 31, 2023 | \n \n \n 15,993 | \n \n \n 7 | \n \n \n 16,000 | \n
All groups of investment contracts with discretionary participating features were not measured under the PAA and were\u00a0in\u00a0a\u00a0liability position at the reporting date and comparative years.
\nThe following tables show the movement in the net carrying amounts of insurance contracts issued,\u00a0reinsurance contracts held and investment contracts with discretionary participating features issued. Two types of tables are presented:
Tables that analyze movements by type of liabilities, and reconcile them to the income statement and the statement of comprehensive income
Tables that analyze movements by measurement component
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Insurance contracts not measured under PAA - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 1,589 | \n \n \n \n \n (1,042) \n | \n \n \n \n \n (362) \n | \n \n \n 185 | \n
| \n \n Opening liabilities | \n \n \n 159,113 | \n \n \n 945 | \n \n \n 17,349 | \n \n \n 177,407 | \n
| \n \n Net opening balance, on January 1, 2024 | \n \n \n 157,524 | \n \n \n 1,987 | \n \n \n 17,711 | \n \n \n 177,222 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (9,656) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (9,656) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n \n \n (317) \n | \n \n \n 8,275 | \n \n \n 7,958 | \n
| \n \n Amortization of insurance acquisition cash flows | \n \n \n 553 | \n \n \n - | \n \n \n - | \n \n \n 553 | \n
| \n \n Losses (and reversal of losses) on onerous contracts | \n \n \n - | \n \n \n 1,118 | \n \n \n - | \n \n \n 1,118 | \n
| \n \n Insurance service expenses | \n \n \n 553 | \n \n \n 801 | \n \n \n 8,275 | \n \n \n 9,629 | \n
| \n \n Investment components | \n \n \n \n \n (5,506) \n | \n \n \n - | \n \n \n 5,506 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (14,609) \n | \n \n \n 801 | \n \n \n 13,781 | \n \n \n \n \n (27) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 11,924 | \n \n \n 62 | \n \n \n - | \n \n \n 11,986 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n \n \n (6,128) \n | \n \n \n \n \n (299) \n | \n \n \n \n \n (5,465) \n | \n \n \n \n \n (11,892) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n 8 | \n \n \n \n \n (94) \n | \n \n \n - | \n \n \n \n \n (85) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (34) \n | \n \n \n 14 | \n \n \n 17 | \n \n \n \n \n (3) \n | \n
| \n \n Other movements | \n \n \n 1 | \n \n \n - | \n \n \n \n \n (5) \n | \n \n \n \n \n (4) \n | \n
| \n \n Transfer (to)/from other headings | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 9,286 | \n \n \n 153 | \n \n \n 1,557 | \n \n \n 10,996 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 157,971 | \n \n \n 2,625 | \n \n \n 27,596 | \n \n \n 188,193 | \n
| \n \n Closing assets | \n \n \n 1,886 | \n \n \n \n \n (1,373) \n | \n \n \n \n \n (387) \n | \n \n \n 125 | \n
| \n \n Closing liabilities | \n \n \n 159,857 | \n \n \n 1,252 | \n \n \n 27,209 | \n \n \n 188,318 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Insurance contracts not measured under PAA - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 40 | \n \n \n \n \n (1) \n | \n \n \n \n \n (2) \n | \n \n \n 36 | \n
| \n \n Opening liabilities | \n \n \n 163,758 | \n \n \n 1,455 | \n \n \n 10,468 | \n \n \n 175,681 | \n
| \n \n Net opening balance, on January 1, 2023 | \n \n \n 163,719 | \n \n \n 1,456 | \n \n \n 10,470 | \n \n \n 175,645 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (10,195) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (10,195) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n \n \n (186) \n | \n \n \n 8,593 | \n \n \n 8,407 | \n
| \n \n Amortization of insurance acquisition cash flows | \n \n \n 558 | \n \n \n - | \n \n \n - | \n \n \n 558 | \n
| \n \n Losses (and reversal of losses) on onerous contracts | \n \n \n - | \n \n \n 1,084 | \n \n \n - | \n \n \n 1,084 | \n
| \n \n Adjustments to liabilities for incurred claims | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 9 | \n
| \n \n Insurance service expenses | \n \n \n 558 | \n \n \n 899 | \n \n \n 8,601 | \n \n \n 10,058 | \n
| \n \n Investment components | \n \n \n \n \n (4,834) \n | \n \n \n - | \n \n \n 4,834 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (14,471) \n | \n \n \n 898 | \n \n \n 13,436 | \n \n \n \n \n (137) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 17,262 | \n \n \n 81 | \n \n \n - | \n \n \n 17,343 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n \n \n (4,892) \n | \n \n \n \n \n (150) \n | \n \n \n \n \n (5,582) \n | \n \n \n \n \n (10,624) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n \n \n (347) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (347) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (1) \n | \n \n \n \n \n (211) \n | \n \n \n \n \n (133) \n | \n \n \n \n \n (345) \n | \n
| \n \n Other movements | \n \n \n 20 | \n \n \n - | \n \n \n - | \n \n \n 20 | \n
| \n \n Transfer (to)/from other headings | \n \n \n \n \n (514) \n | \n \n \n \n \n (33) \n | \n \n \n 36 | \n \n \n \n \n (512) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n \n \n (3,252) \n | \n \n \n \n \n (54) \n | \n \n \n \n \n (515) \n | \n \n \n \n \n (3,821) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 157,524 | \n \n \n 1,987 | \n \n \n 17,711 | \n \n \n 177,222 | \n
| \n \n Closing assets | \n \n \n 1,589 | \n \n \n \n \n (1,042) \n | \n \n \n \n \n (362) \n | \n \n \n 185 | \n
| \n \n Closing liabilities | \n \n \n 159,113 | \n \n \n 945 | \n \n \n 17,349 | \n \n \n 177,407 | \n
| \n | \n\n \n Asset for remaining coverage | \n \n | \n\n | \n|
| \n \n Reinsurance contracts held - by type, no PAA | \n \n \n Excluding loss recovery component | \n \n \n Loss recovery component | \n \n \n Asset for incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 16,457 | \n \n \n 349 | \n \n \n \n \n (205) \n | \n \n \n 16,601 | \n
| \n \n Opening liabilities | \n \n \n 1,738 | \n \n \n \n \n (947) \n | \n \n \n \n \n (183) \n | \n \n \n 608 | \n
| \n \n Net opening balance, on January 1, 2024 | \n \n \n 14,719 | \n \n \n 1,296 | \n \n \n \n \n (22) \n | \n \n \n 15,993 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in the statements of P&L and OCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Net expenses from reinsurance contracts | \n \n \n \n \n (619) \n | \n \n \n 876 | \n \n \n 69 | \n \n \n 325 | \n
| \n \n \n \n Other reinsurance finance income / (expenses) \n | \n \n \n 41 | \n \n \n 19 | \n \n \n - | \n \n \n 61 | \n
| \n \n Effect of changes in risk of non-performance of reinsurers | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (5) \n | \n
| \n \n Total changes in the statements of P&L and OCI | \n \n \n \n \n (583) \n | \n \n \n 895 | \n \n \n 69 | \n \n \n 380 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n \n \n (1,460) \n | \n \n \n \n \n (140) \n | \n \n \n \n \n (268) \n | \n \n \n \n \n (1,869) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other movements | \n \n \n 371 | \n \n \n \n \n (409) \n | \n \n \n 234 | \n \n \n 196 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 908 | \n \n \n 103 | \n \n \n - | \n \n \n 1,011 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on 31 December 31, 2024 | \n \n \n 13,954 | \n \n \n 1,745 | \n \n \n 13 | \n \n \n 15,712 | \n
| \n \n Closing assets | \n \n \n 15,965 | \n \n \n 475 | \n \n \n \n \n (426) \n | \n \n \n 16,015 | \n
| \n \n Closing liabilities | \n \n \n 2,011 | \n \n \n \n \n (1,270) \n | \n \n \n \n \n (439) \n | \n \n \n 303 | \n
| \n | \n\n \n Asset for remaining coverage | \n \n | \n\n | \n|
| \n \n Reinsurance contracts held - by type, no PAA | \n \n \n Excluding loss recovery component | \n \n \n Loss recovery component | \n \n \n Asset for incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 14,801 | \n \n \n 1,607 | \n \n \n 526 | \n \n \n 16,934 | \n
| \n \n Opening liabilities | \n \n \n 217 | \n \n \n 57 | \n \n \n \n \n (5) \n | \n \n \n 270 | \n
| \n \n Net opening balance, on January 1, 2023 | \n \n \n 14,584 | \n \n \n 1,549 | \n \n \n 530 | \n \n \n 16,664 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in the statements of P&L and OCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Net expenses from reinsurance contracts | \n \n \n 453 | \n \n \n \n \n (235) \n | \n \n \n \n \n (38) \n | \n \n \n 181 | \n
| \n \n \n \n Other reinsurance finance income / (expenses) \n | \n \n \n 1,026 | \n \n \n 34 | \n \n \n - | \n \n \n 1,060 | \n
| \n \n Effect of changes in risk of non-performance of reinsurers | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (12) \n | \n
| \n \n Total changes in the statements of P&L and OCI | \n \n \n 1,467 | \n \n \n \n \n (200) \n | \n \n \n \n \n (37) \n | \n \n \n 1,229 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n \n \n (397) \n | \n \n \n \n \n (158) \n | \n \n \n \n \n (425) \n | \n \n \n \n \n (979) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other movements | \n \n \n \n \n (424) \n | \n \n \n 139 | \n \n \n \n \n (86) \n | \n \n \n \n \n (371) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n \n \n (511) \n | \n \n \n \n \n (34) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (550) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on 31 December 31, 2023 | \n \n \n 14,719 | \n \n \n 1,296 | \n \n \n \n \n (22) \n | \n \n \n 15,993 | \n
| \n \n Closing assets | \n \n \n 16,457 | \n \n \n 349 | \n \n \n \n \n (205) \n | \n \n \n 16,601 | \n
| \n \n Closing liabilities | \n \n \n 1,738 | \n \n \n \n \n (947) \n | \n \n \n \n \n (183) \n | \n \n \n 608 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Investment contracts with DPF - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Net balance, on January 1, 2024 | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (80) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (80) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 43 | \n \n \n 43 | \n
| \n \n Insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 43 | \n \n \n 43 | \n
| \n \n Investment components | \n \n \n \n \n (2,934) \n | \n \n \n - | \n \n \n 2,934 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (3,014) \n | \n \n \n - | \n \n \n 2,977 | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n 452 | \n \n \n - | \n \n \n \n \n (2,977) \n | \n \n \n \n \n (2,525) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 1,030 | \n \n \n - | \n \n \n - | \n \n \n 1,030 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Investment contracts with DPF - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,055 | \n \n \n - | \n \n \n - | \n \n \n 21,055 | \n
| \n \n Net balance, on January 1, 2023 | \n \n \n 21,055 | \n \n \n - | \n \n \n - | \n \n \n 21,055 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (64) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (64) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 36 | \n \n \n 36 | \n
| \n \n Insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 36 | \n \n \n 36 | \n
| \n \n Investment components | \n \n \n \n \n (2,417) \n | \n \n \n - | \n \n \n 2,418 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (2,481) \n | \n \n \n - | \n \n \n 2,453 | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n 423 | \n \n \n - | \n \n \n \n \n (2,453) \n | \n \n \n \n \n (2,030) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other movements | \n \n \n 172 | \n \n \n - | \n \n \n - | \n \n \n 172 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 503 | \n \n \n - | \n \n \n - | \n \n \n 503 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Insurance contracts not measured under PAA - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 475 | \n \n \n \n \n (286) \n | \n \n \n \n \n (4) \n | \n \n \n 185 | \n
| \n \n Opening liabilities | \n \n \n 166,036 | \n \n \n 3,251 | \n \n \n 8,120 | \n \n \n 177,407 | \n
| \n \n Net opening balance, on January 1, 2024 | \n \n \n 165,562 | \n \n \n 3,537 | \n \n \n 8,124 | \n \n \n 177,222 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (317) \n | \n \n \n \n \n (131) \n | \n \n \n 448 | \n \n \n - | \n
| \n \n Changes in estimates that result in (a reversal of) onerous contracts | \n \n \n 1,063 | \n \n \n 1 | \n \n \n - | \n \n \n 1,064 | \n
| \n \n New contracts issued \u2013 non-onerous | \n \n \n \n \n (648) \n | \n \n \n 102 | \n \n \n 546 | \n \n \n - | \n
| \n \n New contracts issued \u2013 onerous | \n \n \n 36 | \n \n \n 18 | \n \n \n - | \n \n \n 54 | \n
| \n \n Changes that relate to future service | \n \n \n 134 | \n \n \n \n \n (10) \n | \n \n \n 994 | \n \n \n 1,118 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (958) \n | \n \n \n \n \n (958) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (305) \n | \n \n \n - | \n \n \n \n \n (305) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 101 | \n \n \n - | \n \n \n - | \n \n \n 101 | \n
| \n \n Revenue recognized for incurred policyholder tax expenses | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Changes that relate to current service | \n \n \n 103 | \n \n \n \n \n (305) \n | \n \n \n \n \n (958) \n | \n \n \n \n \n (1,160) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Experience adjustments on claims incurred | \n \n \n 15 | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 14 | \n
| \n \n Changes that relate to past service | \n \n \n 15 | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 14 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n 252 | \n \n \n \n \n (315) \n | \n \n \n 36 | \n \n \n \n \n (27) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n General model | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n \n 2,693 | \n \n \n 178 | \n \n \n 225 | \n \n \n 3,096 | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n \n \n \n (1,910) \n | \n \n \n \n \n (11) \n | \n \n \n - | \n \n \n \n \n (1,921) \n | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n \n 121 | \n \n \n - | \n \n \n - | \n \n \n 121 | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 12,719 | \n \n \n - | \n \n \n - | \n \n \n 12,719 | \n
| \n \n Change in fulfilment value of products with direct participating features not recognized in CSM due to risk mitigation option | \n \n \n \n \n (2,029) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,029) \n | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 11,594 | \n \n \n 167 | \n \n \n 225 | \n \n \n 11,986 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 15,377 | \n \n \n - | \n \n \n - | \n \n \n 15,377 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (26,274) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26,274) \n | \n
| \n \n Acquisition costs paid | \n \n \n \n \n (963) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (963) \n | \n
| \n \n Other | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (32) \n | \n
| \n \n Cash flows | \n \n \n \n \n (11,892) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (11,892) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n \n \n (128) \n | \n \n \n - | \n \n \n 43 | \n \n \n \n \n (85) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (14) \n | \n \n \n 6 | \n \n \n 6 | \n \n \n \n \n (3) \n | \n
| \n \n Other | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n Other movements | \n \n \n \n \n (147) \n | \n \n \n 6 | \n \n \n 48 | \n \n \n \n \n (92) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 10,242 | \n \n \n 224 | \n \n \n 529 | \n \n \n 10,996 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 175,611 | \n \n \n 3,618 | \n \n \n 8,964 | \n \n \n 188,193 | \n
| \n \n Closing assets | \n \n \n 452 | \n \n \n \n \n (323) \n | \n \n \n \n \n (5) \n | \n \n \n 125 | \n
| \n \n Closing liabilities | \n \n \n 176,063 | \n \n \n 3,295 | \n \n \n 8,959 | \n \n \n 188,318 | \n
| \n \n Insurance contracts not measured under PAA - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 100 | \n \n \n - | \n \n \n \n \n (64) \n | \n \n \n 36 | \n
| \n \n Opening liabilities | \n \n \n 163,381 | \n \n \n 3,436 | \n \n \n 8,865 | \n \n \n 175,681 | \n
| \n \n Net opening balance, on January 1, 2023 | \n \n \n 163,280 | \n \n \n 3,435 | \n \n \n 8,929 | \n \n \n 175,645 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (204) \n | \n \n \n 380 | \n \n \n \n \n (176) \n | \n \n \n - | \n
| \n \n Changes in estimates that result in (a reversal of) onerous contracts | \n \n \n 974 | \n \n \n 51 | \n \n \n - | \n \n \n 1,025 | \n
| \n \n New contracts issued \u2013 non-onerous | \n \n \n \n \n (563) \n | \n \n \n 90 | \n \n \n 473 | \n \n \n - | \n
| \n \n New contracts issued \u2013 onerous | \n \n \n 38 | \n \n \n 22 | \n \n \n - | \n \n \n 60 | \n
| \n \n Changes that relate to future service | \n \n \n 245 | \n \n \n 542 | \n \n \n 297 | \n \n \n 1,084 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (952) \n | \n \n \n \n \n (952) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (345) \n | \n \n \n - | \n \n \n \n \n (345) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 75 | \n \n \n - | \n \n \n - | \n \n \n 75 | \n
| \n \n Revenue recognized for incurred policyholder tax expenses | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n \n Changes that relate to current service | \n \n \n 60 | \n \n \n \n \n (345) \n | \n \n \n \n \n (952) \n | \n \n \n \n \n (1,238) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Experience adjustments on claims incurred | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n 17 | \n
| \n \n Changes that relate to past service | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n 17 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n 322 | \n \n \n 197 | \n \n \n \n \n (656) \n | \n \n \n \n \n (137) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n General model | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n \n 2,680 | \n \n \n 195 | \n \n \n 223 | \n \n \n 3,098 | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n \n 1,573 | \n \n \n 14 | \n \n \n - | \n \n \n 1,587 | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n \n 425 | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n 421 | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 13,730 | \n \n \n - | \n \n \n - | \n \n \n 13,730 | \n
| \n \n Change in fulfilment value of products with direct participating features not recognized in CSM due to risk mitigation option | \n \n \n \n \n (1,493) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,493) \n | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 16,915 | \n \n \n 205 | \n \n \n 223 | \n \n \n 17,343 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 14,203 | \n \n \n - | \n \n \n - | \n \n \n 14,203 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (23,862) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (23,862) \n | \n
| \n \n Acquisition costs paid | \n \n \n \n \n (936) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (936) \n | \n
| \n \n Other | \n \n \n \n \n (30) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (30) \n | \n
| \n \n Cash flows | \n \n \n \n \n (10,624) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (10,624) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n \n \n (283) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (59) \n | \n \n \n \n \n (347) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (59) \n | \n \n \n \n \n (197) \n | \n \n \n \n \n (89) \n | \n \n \n \n \n (345) \n | \n
| \n \n Other | \n \n \n 41 | \n \n \n - | \n \n \n \n \n (21) \n | \n \n \n 20 | \n
| \n \n Transfer (to)/from other headings | \n \n \n \n \n (511) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (512) \n | \n
| \n \n Other movements | \n \n \n \n \n (811) \n | \n \n \n \n \n (203) \n | \n \n \n \n \n (169) \n | \n \n \n \n \n (1,184) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n \n \n (3,520) \n | \n \n \n \n \n (98) \n | \n \n \n \n \n (203) \n | \n \n \n \n \n (3,821) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 165,562 | \n \n \n 3,537 | \n \n \n 8,124 | \n \n \n 177,222 | \n
| \n \n Closing assets | \n \n \n 475 | \n \n \n \n \n (286) \n | \n \n \n \n \n (4) \n | \n \n \n 185 | \n
| \n \n Closing liabilities | \n \n \n 166,036 | \n \n \n 3,251 | \n \n \n 8,120 | \n \n \n 177,407 | \n
| \n \n Reinsurance contracts held - Movement schedule by component, no PAA | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 16,184 | \n \n \n 423 | \n \n \n \n \n (7) \n | \n \n \n 16,601 | \n
| \n \n Opening liabilities | \n \n \n 1,024 | \n \n \n \n \n (332) \n | \n \n \n \n \n (85) \n | \n \n \n 608 | \n
| \n \n Net opening balance, on January 1, 2024 | \n \n \n 15,160 | \n \n \n 755 | \n \n \n 78 | \n \n \n 15,993 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust the contractual service margin | \n \n \n \n \n (152) \n | \n \n \n \n \n (11) \n | \n \n \n 163 | \n \n \n - | \n
| \n \n Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts | \n \n \n 462 | \n \n \n 38 | \n \n \n \n \n (46) \n | \n \n \n 454 | \n
| \n \n New reinsurance contracts issued / acquired recognized in the year | \n \n \n \n \n (11) \n | \n \n \n 4 | \n \n \n 8 | \n \n \n 1 | \n
| \n \n Changes that relate to future service | \n \n \n 299 | \n \n \n 31 | \n \n \n 125 | \n \n \n 455 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n CSM recognized for service received | \n \n \n - | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n \n \n (14) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (83) \n | \n \n \n - | \n \n \n \n \n (83) \n | \n
| \n \n Experience adjustment on current service | \n \n \n \n \n (36) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (36) \n | \n
| \n \n Changes that relate to current service | \n \n \n \n \n (36) \n | \n \n \n \n \n (83) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (133) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Experience adjustment on claims component | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Changes that relate to past service | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net income/expenses of reinsurance held | \n \n \n 266 | \n \n \n \n \n (52) \n | \n \n \n 111 | \n \n \n 325 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Reinsurance finance income / (expenses) \n | \n \n \n 31 | \n \n \n 36 | \n \n \n \n \n (12) \n | \n \n \n 55 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums paid, net of received fixed commission | \n \n \n 1,341 | \n \n \n - | \n \n \n - | \n \n \n 1,341 | \n
| \n \n Amounts received | \n \n \n \n \n (3,209) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,209) \n | \n
| \n \n Other | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Cash flows | \n \n \n \n \n (1,869) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,869) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Reinsurance contracts disposed in the year | \n \n \n \n \n (64) \n | \n \n \n - | \n \n \n 34 | \n \n \n \n \n (30) \n | \n
| \n \n Other movements | \n \n \n 207 | \n \n \n 5 | \n \n \n 14 | \n \n \n 226 | \n
| \n \n Other movements | \n \n \n 143 | \n \n \n 5 | \n \n \n 48 | \n \n \n 196 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange difference | \n \n \n 949 | \n \n \n 50 | \n \n \n 12 | \n \n \n 1,011 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 14,681 | \n \n \n 794 | \n \n \n 237 | \n \n \n 15,712 | \n
| \n \n Closing assets | \n \n \n 15,374 | \n \n \n 433 | \n \n \n 208 | \n \n \n 16,015 | \n
| \n \n Closing liabilities | \n \n \n 693 | \n \n \n \n \n (361) \n | \n \n \n \n \n (29) \n | \n \n \n 303 | \n
| \n \n Reinsurance contracts held - Movement schedule by component, no PAA | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 16,233 | \n \n \n 1,010 | \n \n \n \n \n (309) \n | \n \n \n 16,934 | \n
| \n \n Opening liabilities | \n \n \n 371 | \n \n \n 101 | \n \n \n \n \n (202) \n | \n \n \n 270 | \n
| \n \n Net opening balance, on January 1, 2023 | \n \n \n 15,862 | \n \n \n 909 | \n \n \n \n \n (107) \n | \n \n \n 16,664 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust the contractual service margin | \n \n \n \n \n (3) \n | \n \n \n 6 | \n \n \n \n \n (4) \n | \n \n \n - | \n
| \n \n Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts | \n \n \n 477 | \n \n \n 67 | \n \n \n 6 | \n \n \n 550 | \n
| \n \n New reinsurance contracts issued / acquired recognized in the year | \n \n \n \n \n (330) \n | \n \n \n 42 | \n \n \n 271 | \n \n \n \n \n (17) \n | \n
| \n \n Initial recognition of onerous underlying contracts | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n 12 | \n
| \n \n Changes that relate to future service | \n \n \n 144 | \n \n \n 114 | \n \n \n 286 | \n \n \n 544 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n CSM recognized for service received | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n \n \n \n \n (26) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n
| \n \n Experience adjustment on current service | \n \n \n \n \n (217) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (217) \n | \n
| \n \n Changes that relate to current service | \n \n \n \n \n (217) \n | \n \n \n \n \n (118) \n | \n \n \n \n \n (26) \n | \n \n \n \n \n (361) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Experience adjustment on claims component | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Changes that relate to past service | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net income/expenses of reinsurance held | \n \n \n \n \n (76) \n | \n \n \n \n \n (3) \n | \n \n \n 260 | \n \n \n 181 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Reinsurance finance income / (expenses) \n | \n \n \n 1,013 | \n \n \n 48 | \n \n \n \n \n (13) \n | \n \n \n 1,048 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums paid, net of received fixed commission | \n \n \n 2,642 | \n \n \n - | \n \n \n - | \n \n \n 2,642 | \n
| \n \n Amounts received | \n \n \n \n \n (3,622) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,622) \n | \n
| \n \n Cash flows | \n \n \n \n \n (979) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (979) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other movements | \n \n \n \n \n (132) \n | \n \n \n \n \n (176) \n | \n \n \n \n \n (63) \n | \n \n \n \n \n (371) \n | \n
| \n \n Other movements | \n \n \n \n \n (132) \n | \n \n \n \n \n (176) \n | \n \n \n \n \n (63) \n | \n \n \n \n \n (371) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange difference | \n \n \n \n \n (528) \n | \n \n \n \n \n (23) \n | \n \n \n 2 | \n \n \n \n \n (550) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 15,160 | \n \n \n 755 | \n \n \n 78 | \n \n \n 15,993 | \n
| \n \n Closing assets | \n \n \n 16,184 | \n \n \n 423 | \n \n \n \n \n (7) \n | \n \n \n 16,601 | \n
| \n \n Closing liabilities | \n \n \n 1,024 | \n \n \n \n \n (332) \n | \n \n \n \n \n (85) \n | \n \n \n 608 | \n
| \n \n Investment contracts with DPF - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n \n Net balance, on January 1, 2024 | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (70) \n | \n \n \n \n \n (7) \n | \n \n \n 76 | \n \n \n - | \n
| \n \n Changes that relate to future service | \n \n \n \n \n (70) \n | \n \n \n \n \n (7) \n | \n \n \n 76 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n \n \n (33) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (14) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 11 | \n
| \n \n Changes that relate to current service | \n \n \n 11 | \n \n \n \n \n (14) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes that relate to past service | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n \n \n (59) \n | \n \n \n \n \n (21) \n | \n \n \n 43 | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 470 | \n \n \n - | \n \n \n - | \n \n \n 470 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (2,995) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,995) \n | \n
| \n \n Cash flows | \n \n \n \n \n (2,525) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,525) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Other movements | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 1,015 | \n \n \n 6 | \n \n \n 10 | \n \n \n 1,030 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n
| \n \n Investment contracts with DPF - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 20,874 | \n \n \n 109 | \n \n \n 72 | \n \n \n 21,055 | \n
| \n \n Net balance, on January 1, 2023 | \n \n \n 20,874 | \n \n \n 109 | \n \n \n 72 | \n \n \n 21,055 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (152) \n | \n \n \n 31 | \n \n \n 121 | \n \n \n - | \n
| \n \n Changes that relate to future service | \n \n \n \n \n (152) \n | \n \n \n 31 | \n \n \n 121 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n \n \n (17) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Changes that relate to current service | \n \n \n 4 | \n \n \n \n \n (15) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes that relate to past service | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n \n \n (148) \n | \n \n \n 16 | \n \n \n 104 | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 475 | \n \n \n - | \n \n \n - | \n \n \n 475 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (2,506) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,506) \n | \n
| \n \n Cash flows | \n \n \n \n \n (2,030) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,030) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n 170 | \n \n \n - | \n \n \n 1 | \n \n \n 172 | \n
| \n \n Other movements | \n \n \n 170 | \n \n \n - | \n \n \n 1 | \n \n \n 172 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 498 | \n \n \n 3 | \n \n \n 2 | \n \n \n 503 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n | \n\n | \n\n | \n\n \n 2024 | \n
| \n \n New contracts recognized | \n \n \n Issued non-onerous contracts | \n \n \n Issued onerous contracts | \n \n \n Total | \n
| \n \n Present value of cash inflows | \n \n \n \n \n (5,363) \n | \n \n \n \n \n (861) \n | \n \n \n \n \n (6,225) \n | \n
| \n \n Present value of cash outflows, excl. acquisition costs | \n \n \n 4,715 | \n \n \n 897 | \n \n \n 5,612 | \n
| \n \n Risk adjustment for non-financial risk | \n \n \n 102 | \n \n \n 18 | \n \n \n 120 | \n
| \n \n Contractual service margin | \n \n \n 546 | \n \n \n - | \n \n \n 546 | \n
| \n \n (Gain) / loss recognized on initial recognition | \n \n \n - | \n \n \n 54 | \n \n \n 54 | \n
| \n | \n\n | \n\n | \n\n \n 2023 | \n
| \n \n New contracts recognized | \n \n \n Issued non-onerous contracts | \n \n \n Issued onerous contracts | \n \n \n Total | \n
| \n \n Present value of cash inflows | \n \n \n \n \n (5,155) \n | \n \n \n \n \n (545) \n | \n \n \n \n \n (5,701) \n | \n
| \n \n Present value of cash outflows, excl. acquisition costs | \n \n \n 4,593 | \n \n \n 583 | \n \n \n 5,176 | \n
| \n \n Risk adjustment for non-financial risk | \n \n \n 90 | \n \n \n 22 | \n \n \n 112 | \n
| \n \n Contractual service margin | \n \n \n 473 | \n \n \n - | \n \n \n 473 | \n
| \n \n (Gain) / loss recognized on initial recognition | \n \n \n - | \n \n \n 60 | \n \n \n 60 | \n
| \n \n 2024 | \n \n \n Reinsurance contracts | \n
| \n \n Present value of cash inflows | \n \n \n 54 | \n
| \n \n Present value of cash outflows | \n \n \n \n \n (65) \n | \n
| \n \n Risk adjustment for non-financial risk | \n \n \n 4 | \n
| \n \n Contractual service margin | \n \n \n 8 | \n
| \n \n Income recognized on initial recognition | \n \n \n 1 | \n
| \n \n 2023 | \n \n | \n
| \n \n Present value of cash inflows | \n \n \n 201 | \n
| \n \n Present value of cash outflows | \n \n \n \n \n (531) \n | \n
| \n \n Risk adjustment for non-financial risk | \n \n \n 42 | \n
| \n \n Contractual service margin | \n \n \n 271 | \n
| \n \n Income recognized on initial recognition | \n \n \n \n \n (17) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Maturity analysis CSM insurance contracts, no PAA | \n \n \n Discounted CSM | \n \n \n Discounted CSM | \n
| \n \n <1 year | \n \n \n 922 | \n \n \n 839 | \n
| \n \n 1-2 years | \n \n \n 832 | \n \n \n 756 | \n
| \n \n 2-3 years | \n \n \n 752 | \n \n \n 684 | \n
| \n \n 3-4 years | \n \n \n 679 | \n \n \n 618 | \n
| \n \n 4-5 years | \n \n \n 614 | \n \n \n 559 | \n
| \n \n 5-10 years | \n \n \n 2,261 | \n \n \n 2,071 | \n
| \n \n 10-20 years | \n \n \n 2,009 | \n \n \n 1,850 | \n
| \n \n > 20 years | \n \n \n 896 | \n \n \n 748 | \n
| \n \n On December 31 | \n \n \n 8,964 | \n \n \n 8,124 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Maturity analysis CSM reinsurance contracts held, no PAA | \n \n \n Discounted CSM | \n \n \n Discounted CSM | \n
| \n \n < 1yr | \n \n \n - | \n \n \n 8 | \n
| \n \n 1 < 2 yrs | \n \n \n 1 | \n \n \n 7 | \n
| \n \n 2 < 3 yrs | \n \n \n 4 | \n \n \n 6 | \n
| \n \n 3 < 4 yrs | \n \n \n 6 | \n \n \n 6 | \n
| \n \n 4 < 5 yrs | \n \n \n 7 | \n \n \n 5 | \n
| \n \n 5 < 10 yrs | \n \n \n 49 | \n \n \n 18 | \n
| \n \n 10 - 20 yrs | \n \n \n 106 | \n \n \n 17 | \n
| \n \n > 20 yrs | \n \n \n 63 | \n \n \n 12 | \n
| \n \n On December 31 | \n \n \n 237 | \n \n \n 78 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Reinsurance contracts held | \n |||||||||
| \n | \n\n \n MRA 1 | \n \n \n FVA 2 | \n \n \n Other | \n \n \n Total CSM | \n \n \n MRA | \n \n \n FVA | \n \n \n Other | \n \n \n Total CSM | \n \n \n MRA | \n \n \n FVA | \n \n \n Other | \n \n \n Total CSM | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2024 | \n \n \n 1,557 | \n \n \n 4,000 | \n \n \n 2,568 | \n \n \n 8,124 | \n \n \n - | \n \n \n 180 | \n \n \n - | \n \n \n 180 | \n \n \n - | \n \n \n \n \n (149) \n | \n \n \n 227 | \n \n \n 78 | \n
| \n \n Changes in estimates that adjust CSM | \n \n \n \n \n (26) \n | \n \n \n 523 | \n \n \n \n \n (48) \n | \n \n \n 448 | \n \n \n - | \n \n \n 76 | \n \n \n - | \n \n \n 76 | \n \n \n - | \n \n \n 192 | \n \n \n \n \n (30) \n | \n \n \n 163 | \n
| \n \n Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (46) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (46) \n | \n
| \n \n New contracts issued: non-onerous | \n \n \n - | \n \n \n - | \n \n \n 546 | \n \n \n 546 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 9 | \n
| \n \n Earnings released from contractual service margin | \n \n \n \n \n (174) \n | \n \n \n \n \n (492) \n | \n \n \n \n \n (292) \n | \n \n \n \n \n (958) \n | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n - | \n \n \n 18 | \n \n \n \n \n (32) \n | \n \n \n \n \n (14) \n | \n
| \n \n \n \n Insurance finance income / (expense) \n | \n \n \n 5 | \n \n \n 146 | \n \n \n 74 | \n \n \n 225 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (25) \n | \n \n \n 13 | \n \n \n \n \n (12) \n | \n
| \n \n Cash flow - contracts disposed | \n \n \n - | \n \n \n 43 | \n \n \n - | \n \n \n 43 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 34 | \n \n \n - | \n \n \n 34 | \n
| \n \n Net exchange differences | \n \n \n 95 | \n \n \n 270 | \n \n \n 164 | \n \n \n 529 | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n 14 | \n \n \n 12 | \n
| \n \n Other | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n 9 | \n \n \n 14 | \n
| \n \n On December 31, 2024 | \n \n \n 1,457 | \n \n \n 4,494 | \n \n \n 3,013 | \n \n \n 8,964 | \n \n \n - | \n \n \n 233 | \n \n \n - | \n \n \n 233 | \n \n \n - | \n \n \n 28 | \n \n \n 208 | \n \n \n 237 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Reinsurance contracts held | \n |||||||||
| \n | \n\n \n MRA 1 | \n \n \n FVA 2 | \n \n \n Other | \n \n \n Total CSM | \n \n \n MRA | \n \n \n FVA | \n \n \n Other | \n \n \n Total CSM | \n \n \n MRA | \n \n \n FVA | \n \n \n Other | \n \n \n Total CSM | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n 1,836 | \n \n \n 4,673 | \n \n \n 2,420 | \n \n \n 8,929 | \n \n \n - | \n \n \n 72 | \n \n \n - | \n \n \n 72 | \n \n \n 1 | \n \n \n \n \n (129) \n | \n \n \n 21 | \n \n \n \n \n (107) \n | \n
| \n \n Changes in estimates that adjust CSM | \n \n \n \n \n (40) \n | \n \n \n \n \n (105) \n | \n \n \n \n \n (32) \n | \n \n \n \n \n (176) \n | \n \n \n - | \n \n \n 121 | \n \n \n - | \n \n \n 121 | \n \n \n - | \n \n \n 11 | \n \n \n \n \n (14) \n | \n \n \n \n \n (4) \n | \n
| \n \n Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n 2 | \n \n \n 6 | \n
| \n \n New contracts issued: non-onerous | \n \n \n - | \n \n \n - | \n \n \n 473 | \n \n \n 473 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 283 | \n \n \n 283 | \n
| \n \n Earnings released from contractual service margin | \n \n \n \n \n (191) \n | \n \n \n \n \n (498) \n | \n \n \n \n \n (264) \n | \n \n \n \n \n (952) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n 9 | \n \n \n \n \n (34) \n | \n \n \n \n \n (26) \n | \n
| \n \n \n \n Insurance finance income / (expense) \n | \n \n \n 8 | \n \n \n 159 | \n \n \n 57 | \n \n \n 223 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (21) \n | \n \n \n 8 | \n \n \n \n \n (13) \n | \n
| \n \n Cash flow - contracts disposed | \n \n \n - | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Net exchange differences | \n \n \n \n \n (57) \n | \n \n \n \n \n (128) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (203) \n | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 6 | \n \n \n \n \n (5) \n | \n \n \n 2 | \n
| \n \n Other | \n \n \n 1 | \n \n \n \n \n (42) \n | \n \n \n \n \n (68) \n | \n \n \n \n \n (110) \n | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n \n \n (30) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (63) \n | \n
| \n \n On December 31, 2023 | \n \n \n 1,557 | \n \n \n 4,000 | \n \n \n 2,568 | \n \n \n 8,124 | \n \n \n - | \n \n \n 180 | \n \n \n - | \n \n \n 180 | \n \n \n - | \n \n \n \n \n (149) \n | \n \n \n 227 | \n \n \n 78 | \n
Other in the 2023 table above relates to derecognition of liabilities following the completion of the transaction with a.s.r.
\nChanges in accounting policies resulting from the adoption of IFRS 17 in 2023 were applied retrospectively, to the extent practicable. Aegon considered the full retrospective approach to be impracticable when its application required hindsight, for\u00a0example in setting historical assumptions, or if the required historical input data could not be made available within reasonable efforts. The latter was, for example, concluded when information was no longer available electronically and incorporating it into the IFRS 17 reporting process was expected to cause high costs and efforts.
If the retrospective application of IFRS 17 to a group of contracts was impracticable, either the modified retrospective approach or the fair value approach was applied. The modified retrospective approach may only be applied if there is reasonable and supportable information available to do so. For groups of contracts that in principle were eligible for both the\u00a0modified retrospective and the fair value approach, the most appropriate transition method was elected based on a mix of operational and financial considerations.
Notwithstanding the foregoing, Aegon applied the fair value approach to some groups of contracts with direct participating features, to which it could have applied IFRS 17 fully retrospectively. These were groups of contracts for which Aegon had mitigated financial risk prior to transition using derivatives, other financial instruments classified as fair value through profit or\u00a0loss, and reinsurance contracts, and to which risk mitigation has been applied prospectively from the transition date.
\nUnder the fair value approach, the carrying amount of a group of insurance contracts at transition is determined in accordance with IFRS 13 Fair Value Measurement but with the exclusion of the guidance on demand features. The difference between the fair value and the fulfillment cash flows at the transaction date is recognized as the contractual service margin.
In estimating the fair value of insurance contracts for the transition to IFRS 17, Aegon applied a methodology whereby the estimated future cash flows were adjusted for known differences between the IFRS 17 and market valuation methodologies (such as the inclusion of investment expenses for all product types) and the risk adjustment was recalculated at a higher confidence level to reflect the additional compensation that a market participant would require for financial risk and the remaining contractual services that need to be provided. Where possible, the results were compared to market-observable transactions, such as recent reinsurance transactions entered into by Aegon and sales transactions of insurance portfolios and businesses.
For contracts that transitioned to IFRS 17 under the fair value approach, the following assessments were generally performed at the original contract inception date, with a limited number of products being assessed at the transition date:
Assessment whether an insurance contract met the definition of an insurance contract with direct participating features;
Assessment whether an investment contract met the definition of an investment contract with discretionary participating features; and
Identification of discretionary cash flows for insurance contracts without direct participating features.
The grouping of contracts to which the fair value approach is applied has been performed at the transition date. The contracts were grouped together in portfolios in accordance with IFRS 9 and IFRS 17 (as per January 1, 2023). None of the contracts were identified as being onerous at transition. The identified groups of contracts were not further segmented into cohorts based on issue date.
The discount rates at which interest is accrued to the contractual service margin and at which changes in non-financial assumptions are recognized for groups of contracts without direct participating features have also been set at the transition date.
\nThe objective of a modified retrospective approach is to reach the closest outcome to the full retrospective approach using reasonable and supportable information that can be obtained without undue cost or effort. Aegon applied the modified retrospective approach to groups of contracts for which the fair value approach was not the preferred transition approach, by working back from the transition date to the date of initial recognition to gather the necessary information. Only where the information could not be made available without undue effort were modifications applied as allowed under IFRS 17.
For all contracts that transitioned to IFRS 17 under the modified retrospective approach, sufficient information was available to perform the contract classifications at the original contract inception date.
The grouping of contracts was performed on the original contract inception date, or if there was a lack of reasonable and supportable information, on the transition date. Contracts were grouped into cohorts not exceeding 12 months.
None of the contracts to which the modified retrospective approach was applied were identified as being onerous at initial inception.
\nTo determine the contractual service margin at transition for groups of contracts without direct participating features, Aegon first estimated the contractual service margin at the original inception date. The contractual service margin at inception was then rolled forward to the transition date by deducting the estimated amount that would have been released for services provided prior to transition.
In order to attribute past calendar-year cash flows (including acquisition cash flows) to issue year cohorts, appropriate allocation keys were set by cash flow type based on the information available. Examples include accumulated premiums in\u00a0force and (first year) account values.
The calculation of the fulfillment cash flows at inception and the subsequent accretion of interest to the contractual service margin of a group of contracts required the use of historical discount rates. In principle, Aegon determines IFRS 17 discount rates using a hybrid approach based on risk-free rates plus an illiquidity premium based on expected asset returns. Where the necessary asset portfolio data was not or no longer available, an appropriate observable yield curve plus a spread adjustment was applied to approximate historical discount rates. For cohorts that exceed 12 months, weighted-average historical discount rates were applied. The weighting was based on sales volumes, or where not available, on the expected coverage units at inception.
The modified retrospective calculations were based on the assumption that Aegon had not previously prepared interim financial statements, unless sufficient information existed to roll the contractual service margin forward with Aegon\u2019s historical reporting frequency.
\nTo determine the contractual service margin at transition for a group of insurance contracts with direct participating features, Aegon first estimated the total contractual service margin for all services to be provided for that group of contracts. It then deducted the estimated amount that would have been released for services provided prior to the transition date.
The total contractual service margin for all services to be provided was estimated by taking the fair value of the underlying items at the transition date minus the fulfillment cash flows at that date and adjusting it for:
Amounts charged to policyholders prior to the transition date;
Excess claims and expenses paid in this period, including acquisition costs; and
The estimated change in the risk adjustment for non-financial risk caused by the release of risk before the transition date.
Calendar year cash flows were attributed to issue years using allocation keys that were appropriate for the cash flow types, based on available information (for example, account value, and for excess claims paid, the net amount at risk). In estimating the change in the risk adjustment for non-financial risk prior to the transition date, the projected risk adjustment pattern for newly issued cohorts of similar products were deemed an appropriate proxy for previous years.
The amount released for services provided prior to transition was determined by multiplying the adjusted total contractual service margin by the ratio of the coverage units served prior to transition and the total coverage units expected to be provided over the lifetime of the group of contracts.
\nUnder IFRS 17, Aegon has elected to disaggregate the insurance finance income or expenses between profit or loss and OCI for certain groups of contracts without direct participating features that are issued in the Americas and Asia. The balance recognized in OCI has been determined retrospectively where possible, or alternatively, has been set to nil at the transition date. The latter applies, for example, to the fixed deferred annuities, indexed universal life and other life insurance products with indirect participating features issued in the Americas.
Aegon also no longer applies shadow accounting which, ignoring the impact of any reclassifications of investments discussed below, has had a positive impact on the carrying amount of revaluation reserves presented in OCI.
\nOn transition to IFRS 17, amounts were recognized in the revaluation reserve for insurance contracts, investment contracts with discretionary features and reinsurance contracts held using the modified retrospective approach and/or the fair value approach.
Part of the assets backing these groups of insurance contracts are measured at fair value through other comprehensive income. The movement in the period in the cumulative amount recognized in OCI for these assets is reflected in the table below:
| \n | \n\n \n Assets backing up | \n
| \n | \n\n \n Insurance contracts | \n
| \n \n On January 1, 2024 | \n \n \n \n \n (1,147) \n | \n
| \n \n Gross revaluation | \n \n \n \n \n (1,125) \n | \n
| \n \n Net gains/(losses) transferred to income statement | \n \n \n \n \n (62) \n | \n
| \n \n Foreign currency translation differences | \n \n \n \n \n (115) \n | \n
| \n \n Tax effect | \n \n \n 233 | \n
| \n \n Other | \n \n \n 86 | \n
| \n \n On December 31, 2024 | \n \n \n \n \n (2,131) \n | \n
| \n | \n\n \n Assets backing up | \n
| \n | \n\n \n Insurance contracts | \n
| \n \n On January 1, 2023 | \n \n \n \n \n (2,375) \n | \n
| \n \n Gross revaluation | \n \n \n 1,137 | \n
| \n \n Net gains/(losses) transferred to income statement | \n \n \n 309 | \n
| \n \n Foreign currency translation differences | \n \n \n 55 | \n
| \n \n Tax effect | \n \n \n \n \n (322) \n | \n
| \n \n Other | \n \n \n 47 | \n
| \n \n On December 31, 2023 | \n \n \n \n \n (1,147) \n | \n
Of the Gross revaluation, EUR 1,073 million was unrealized loss through equity (2023: gain of EUR 1,211 million). The Net gains/(losses) transferred to the income statement include EUR 56 million due to transfer disposal (2023: EUR 437 million).
\nThe fulfillment cash flows comprise:
Estimates of future cash flows;
An adjustment to reflect time value of money and the financial risks related to future cash flows, to the extent that the\u00a0financial risks are not included in the estimates of future cash flows and
A risk adjustment for non-financial risk.
Each measurement element requires the use of significant judgment and estimates.
\nAegon\u2019s objective in estimating future cash flows is to determine a range of scenarios that reflects the likely possible outcomes. Each scenario specifies the amount and timing of the cash flows for a particular outcome, and the estimated probability of that outcome. The cash flows from each scenario are discounted and weighted by the estimated probability of\u00a0that outcome to derive an expected present value.
When determining the expected value of the full range of possible outcomes, the objective is to incorporate all reasonable and supportable information available without undue cost or effort in an unbiased way, rather than to identify every possible scenario. In some cases, relatively simple modeling provides an answer within an acceptable range of precision. In other cases, more complex valuation methods are required to satisfy the measurement objective. For example, if cash flows reflect a series of interrelated (implicit or explicit) options and respond in a non-linear fashion to changes in economic conditions, then Aegon often uses stochastic modeling techniques to estimate the expected present value. Stochastic modeling involves projecting future cash flows under a large number of possible economic scenarios for market variables such as interest rates and equity returns. Other methods that are used to measure non-linear cash flows include closed-form solutions and replicating portfolio techniques.
\nWhen estimating future cash flows, Aegon sets actuarial assumptions for underwriting risk including policy claims (such as\u00a0mortality, longevity, or morbidity), policyholder behavior (such as lapses, surrender of policies or partial withdrawals), and property\u00a0& casualty loss ratios and expenses. Actuarial assumptions are reviewed annually, with the exception of expense assumptions, which might be updated more frequently as a result of the quarterly monitoring of actual expenses.
\nMortality tables are generally developed and\u00a0applied based on a blend of company experience and industry wide studies, taking into consideration product characteristics, own risk selection criteria, target market and past experience. Mortality experience is monitored through regular studies, the results of which are fed into the pricing cycle for new products and reflected in the liability calculation for in-force groups of contracts where appropriate. For contracts insuring survivorship or mortality, allowance is made for further longevity or mortality improvements. Morbidity assumptions are based on own claims severity and frequency experience, adjusted where appropriate for industry information. Industry surveys are used for judgment-based assumptions, such as morbidity improvement and cost of long-term care (LTC) inflation.
Surrender and lapse rates depend on product features, policy duration, and external circumstances such as the interest rate environment and competitor behavior. For policies where policyholders are expected to have a financial incentive to choose a\u00a0favorable lapse timing based on the market conditions, a dynamic lapse assumption is utilized to reflect expected policyholder behavior when applying multiple scenarios in measurement. Own experience, as well as industry-published data, is used to establish assumptions. Lapse experience is correlated to mortality and morbidity levels, as higher or lower levels of surrenders may indicate future claims will be higher or lower than anticipated. Such correlations are accounted for in\u00a0the mortality and morbidity assumptions based on the emerging analysis of experience.
Policyholder benefits that are directly linked to asset performance are projected at rates that are consistent with the discount rates applied. For cash flows like crediting rates, the projected cash flows reflect how the reporting unit would determine crediting rates in a given scenario based on the Group\u2019s crediting policies. Other management actions are taken into account to the extent that they are part of Aegon\u2019s regular policies and procedures.
Given that Aegon applies the premium allocation approach to most of its non-life insurance business, actuarial assumptions related to (ultimate) loss ratio assumptions only impact the fulfillment cash flows for onerous groups of contracts with remaining coverage and for contracts with incurred claims. Aegon uses a range of loss reserving techniques to estimate (ultimate) claims ratios, using historical claims development data as well as market observable inputs. Large-ticket reported claims are assessed on an individual basis.
\nExpenses that are attributable to the fulfillment cash flows include acquisition expenses, maintenance expenses, and claims settlement costs, as well as overhead costs that Aegon considers to be unavoidable when fulfilling the in-force contracts. Investment expenses are included in the fulfillment cash flows for contracts that provide investment-related or investment-return services, as well as for contracts where Aegon performs investment activities that enhance the policyholders\u2019 benefits from insurance coverage. Aegon\u2019s expense assumptions are based on the current level of expenses, adjusted for future expense inflation and the impact of known one-off projects (such as planned cost-saving initiatives or projects to implement additional regulatory reporting requirements). In not-at-scale units, further adjustment is made to reflect a long-term scale of business.
When allocating the attributable expenses to groups of contracts, Aegon leverages allocation approaches used for pricing or regulatory reporting. Where IFRS requires a greater level of granularity, additional allocation keys are applied that have been defined based on, for example, further expense studies. The expense inflation assumption is split into a financial component that is calibrated to market observables and a non-financial component that is set as an actuarial assumption. The non-financial component of the expense inflation assumption represents the estimated difference between general market inflation implied by the market and expense inflation that is specific to Aegon\u2019s product characteristics. Some inflation assumptions (such as LTC utilization and health medical inflation in the Americas) do not include a financial component but\u00a0are entirely set as an actuarial assumption, given that they are weakly correlated with general inflation indices and there\u00a0is no hedge market for such rates.
\nAegon adjusts the estimated future cash flows of a group of contracts to reflect the time value of money and the financial risks related to those cash flows, to the extent that the financial risks are not included in the estimates of cash flows. The\u00a0discount rates applied to the estimates of the future cash flows:
Reflect the time value of money, the characteristics of the cash flows and the liquidity characteristics of the insurance contracts;
Are consistent with observable current market prices (if any) for financial instruments with cash flows whose characteristics are consistent with those of the insurance contracts, in terms of, for example, timing, currency, and liquidity; and
Exclude the effect of factors that influence observable market prices but do not affect the future cash flows of the\u00a0insurance contracts.
No implicit adjustments for non-financial risks are included in the discount rates, as the risk adjustment for non-financial risks is\u00a0explicitly included in the fulfillment cash flows.
When determining the discount rates at the date of initial recognition of a group of contracts, Aegon uses weighted-average discount rates over the period that contracts in that group are issued.\u00a0
IFRS explicitly mentions two calibration options for the discount rate, namely the \"top-down approach\" and \"bottom-up\" approach. Aegon has generalized both approaches into a direct discounting technique in which discount rates are determined as the sum of the risk-free rate plus a percentage of the illiquidity premium (ILP). The ILP is an extra spread that an investor can\u00a0earn by investing in a security that offers limited or no ability for the investor to exit the investment prior to its maturity. If\u00a0an\u00a0insurance liability is illiquid (meaning that the policyholder has limited or no ability to cash it in prior to maturity or contingency-based payment), the liability is discounted at a rate that includes an ILP because illiquid assets (earning an illiquidity premium) may be purchased to back or replicate that liability.\u00a0
\nAegon has identified various rates available in the EUR, GBP and USD markets that can be used as a basis for the risk-free yield curve, including EURIBOR swap rates for EUR, reformed Sterling Overnight Index Average (SONIA) for GBP, and Secured Overnight Funding Rates (SOFR) and US Treasury rates for USD. EURIBOR rates are adjusted for credit risk by subtracting a credit risk allowance. No adjustment is made to overnight swap rates and US Treasury rates, as the credit risk of these instruments is deemed negligible.
A full risk-free yield curve is derived by first interpolating between tenors for which market data is available, and then extrapolating the yield curve beyond market observable maturities. Discount rates converge linearly in 10 years to an ultimate forward rate. A uniform last liquid point for EUR and USD is set at 30 years, GBP is set at 50 years. The ultimate forward rates reflect a long-term view on nominal interest rates and is set by management per currency, considering expected real interest rates and long-term inflation together with the current market environment. The ultimate forward rates have been reviewed as part of the annual Group economic assumptions update and revised to 3.40% effective December 31, 2024 (December 31, 2023: common level of 3.45%).
Aegon reviews the risk-free last liquid point and ultimate forward rates quarterly which, although expected to be infrequent, may lead to assumption updates if there are significant changes in market conditions.\u00a0
| \n \n Yield curves (zero coupon rates excluding ILP) December 31, 2024 | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n EUR | \n \n \n 2.24% | \n \n \n 2.15% | \n \n \n 2.27% | \n \n \n 2.33% | \n \n \n 2.26% | \n \n \n 2.00% | \n
| \n \n GBP | \n \n \n 4.46% | \n \n \n 4.04% | \n \n \n 4.07% | \n \n \n 4.23% | \n \n \n 4.30% | \n \n \n 4.23% | \n
| \n \n USD | \n \n \n 4.24% | \n \n \n 4.46% | \n \n \n 4.67% | \n \n \n 4.89% | \n \n \n 5.05% | \n \n \n 4.82% | \n
| \n \n Yield curves (zero coupon rates excluding ILP) December 31, 2023 | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n EUR | \n \n \n 3.36% | \n \n \n 2.33% | \n \n \n 2.39% | \n \n \n 2.47% | \n \n \n 2.40% | \n \n \n 2.18% | \n
| \n \n GBP | \n \n \n 4.74% | \n \n \n 3.35% | \n \n \n 3.28% | \n \n \n 3.40% | \n \n \n 3.43% | \n \n \n 3.35% | \n
| \n \n USD | \n \n \n 4.83% | \n \n \n 3.89% | \n \n \n 3.90% | \n \n \n 4.00% | \n \n \n 4.39% | \n \n \n 4.00% | \n
Aegon sets ILPs at the level of the reporting unit or major business unit, reflecting how it manages the investments and ALM risk for the given block of liabilities. For example, in the United States, Aegon has set ILPs by lines of business which has resulted in 11 ILP curves. For each unit, an ILP curve is constructed that is based on the market-observables returns on a reference portfolio of assets. The reference portfolio is based on the unit\u2019s actual holdings or investment policy target mix of fixed-interest securities\u00a0except for single premium products with the need to link returns to the actual asset mix, or products with needs of frequent hedging to cover guarantees where Aegon may choose to allow for short-term deviations from the target to \u00a0be included. The reference portfolio excludes alternative investments (such as equities and real estate investments).\u00a0
To derive the ILP curve for respective lines of business, market observable spreads are sourced and adjusted for expected and unexpected default losses. The ILP is based on the weighted average of these adjusted spreads using the line of business reference portfolio.\u00a0
The full ILP curve is derived by interpolating between the observable tenors and then extrapolating the yield linearly beyond the ILP last liquid point to the ultimate forward ILP. The last liquid point can be set separately for each duration bucket or, as\u00a0a\u00a0practical simplification, as a single point in time for the entire reference portfolio. The ultimate forward spread is set based on the historical 50th percentile spread adjusted for expected and unexpected default losses.
Aegon uses the expected default loss from historical default data plus an adjustment for default risk premium. The adjustment for the default risk premium or the unexpected default loss is calculated by applying 30% on top of the expected default, which is based on the management's judgment.
Aegon updates the reference portfolio quarterly, and the ILP last liquid point and ILP ultimate forward rate are revised accordingly. The most significant products of Aegon Ltd. are presented below. These ILP curves are added to the risk-free yields of the currency in which the cash flows of the products are denominated.
| \n \n ILP per portfolio, December 31, 2024 | \n \n \n Country | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n Fixed Deferred Annuity | \n \n \n US | \n \n \n 0.80% | \n \n \n 0.88% | \n \n \n 1.00% | \n \n \n 1.14% | \n \n \n 1.14% | \n \n \n 1.15% | \n
| \n \n Indexed Universal Life | \n \n \n US | \n \n \n 0.90% | \n \n \n 1.02% | \n \n \n 1.09% | \n \n \n 1.22% | \n \n \n 1.21% | \n \n \n 1.22% | \n
| \n \n Long-Term Care | \n \n \n US | \n \n \n 0.72% | \n \n \n 0.73% | \n \n \n 0.77% | \n \n \n 1.06% | \n \n \n 1.14% | \n \n \n 1.28% | \n
| \n \n Traditional Life | \n \n \n US | \n \n \n 0.75% | \n \n \n 0.77% | \n \n \n 0.80% | \n \n \n 1.09% | \n \n \n 1.15% | \n \n \n 1.26% | \n
| \n \n Universal Life | \n \n \n US | \n \n \n 0.76% | \n \n \n 0.79% | \n \n \n 0.81% | \n \n \n 1.05% | \n \n \n 1.11% | \n \n \n 1.24% | \n
| \n \n Variable Annuities | \n \n \n US | \n \n \n 0.55% | \n \n \n 0.63% | \n \n \n 0.64% | \n \n \n 0.65% | \n \n \n 0.64% | \n \n \n 0.66% | \n
| \n \n Annuities | \n \n \n UK | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 0.96% | \n
| \n \n Individual Protection | \n \n \n UK | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.47% | \n \n \n 0.45% | \n
| \n \n ILP per portfolio, December 31, 2023 | \n \n \n Country | \n \n \n 1 year | \n \n \n 5 years | \n \n \n 10 years | \n \n \n 15 years | \n \n \n 20 years | \n \n \n 30 years | \n
| \n \n Fixed Deferred Annuity | \n \n \n US | \n \n \n 1.15% | \n \n \n 1.21% | \n \n \n 1.12% | \n \n \n 1.11% | \n \n \n 1.11% | \n \n \n 1.11% | \n
| \n \n Indexed Universal Life | \n \n \n US | \n \n \n 1.20% | \n \n \n 1.24% | \n \n \n 1.20% | \n \n \n 1.18% | \n \n \n 1.18% | \n \n \n 1.21% | \n
| \n \n Long-Term Care | \n \n \n US | \n \n \n 0.97% | \n \n \n 0.98% | \n \n \n 0.98% | \n \n \n 1.15% | \n \n \n 1.20% | \n \n \n 1.30% | \n
| \n \n Traditional Life | \n \n \n US | \n \n \n 0.99% | \n \n \n 1.01% | \n \n \n 1.02% | \n \n \n 1.15% | \n \n \n 1.19% | \n \n \n 1.28% | \n
| \n \n Universal Life | \n \n \n US | \n \n \n 1.01% | \n \n \n 1.03% | \n \n \n 1.02% | \n \n \n 1.13% | \n \n \n 1.17% | \n \n \n 1.26% | \n
| \n \n Variable Annuities | \n \n \n US | \n \n \n 0.69% | \n \n \n 0.69% | \n \n \n 0.68% | \n \n \n 0.67% | \n \n \n 0.64% | \n \n \n 0.67% | \n
| \n \n Annuities | \n \n \n UK | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.89% | \n \n \n 0.76% | \n
| \n \n Individual Protection | \n \n \n UK | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.49% | \n \n \n 0.40% | \n
The illiquidity factor reflects the liquidity characteristics of a certain group of insurance contracts.\u00a0 Groups of contracts whose cash flows are not dependent on the underlying assets are assigned an illiquidity factor of 100%. Groups of contracts for which the cash flows predominantly vary with the underlying assets are assigned an illiquidity factor of 0%. For example, Aegon UK does not apply an illiquidity factor to the Unit Linked products. For a few products that include both types of cash flows, such as US variable annuity products with guaranteed minimum withdrawal benefits, a combination of 100% and 0% ILP is used.
\nInterest rate volatilities are modeled based on swaption prices, in line with current market pricing.
\nThe risk adjustment for non-financial risk is included explicitly as a separate component of the fulfillment cash flows. It reflects the compensation that Aegon requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as it fulfils insurance contracts.\u00a0
The non-financial risks considered include mortality, morbidity, policyholder behavior, expense, and product specific operational risk. Non-financial risks that do not arise from the insurance contracts, such as general operational risk, are\u00a0not\u00a0reflected in the risk adjustment. The risk adjustment reflects both the risk that actual experience differs from the best estimate assumption used to project future cash flows due to mis-estimation (parameter risk), as well as the risk of random fluctuations around the true estimates (contagion risk).\u00a0
Diversification benefits are recognized at the Group level. To align with market practice, Aegon only reflects the degree of diversification between non-financial risks, and contrary to its pricing methodology, ignores diversification benefits between financial and non-financial risks. Diversification effects include the impact of reinsurance ceded, as well as insurance contracts classified as held for sale.
Aegon generally applies a simplified confidence interval technique which estimates the risk adjustment for non-financial risk using a confidence level (probability of sufficiency) approach at the 80th percentile. Under this approach, a probability distribution is assumed for each particular risk and the amount above the expected present value of future cash flows determined (using a shock factor). The impacts for each risk are then aggregated using a correlation matrix, reflecting diversification between the various non-financial risk types. For some products, Aegon measures contagion risk using the\u00a0Conditional Tail Expectation technique at the 75th percentile. Regardless of the technique applied, the confidence interval is computed across the entire product lifetime in order to fully reflect the risk.\u00a0
\nActuarial assumptions are reviewed periodically in the second quarter for the United States and in the fourth quarter for Europe and Asia, based on historical experience, observable market data, including market transactions such as acquisitions and reinsurance transactions, anticipated trends, and legislative changes. Similarly, the models and systems used for determining our liabilities and reinsurance assets are reviewed periodically, and if deemed necessary, updated based on emerging best practice and available technology.\u00a0
During 2024, Aegon implemented actuarial assumption and model updates which are mainly related to Aegon\u2019s business in\u00a0the Americas.
Assumption updates (non-financial assumptions) are absorbed in the CSM where there are sufficient balances. The change in CSM will impact the amount amortized in the current period and all prospective periods. The total pre-tax impact of non-financial assumption changes at the end of 2024 is a EUR 489 million increase in liabilities. Most of the impact was related to updated mortality assumptions for Protection Solutions and Financial Assets lines of business, where the book has been experiencing volatile and unfavorable claims experience. As a result, the universal life and individual life products are now mainly onerous, however\u00a0there is a limited impact on total liabilities as it is offset by\u00a0the movements in CSM.
Aegon did not make any significant changes to the contract boundaries in the current reporting period, nor did it update the\u00a0approaches used to determine the discount rate or estimate the risk adjustment for non-financial risk.
\nIn addition to the judgments and estimates made in measuring the fulfillment cash flows that are described above, other\u00a0significant judgments are applied in determining:
The relative weighting of coverage units when multiple services are provided;
The non-distinct investment component, which is excluded from insurance revenue; and
The adjustment for nonperformance risk that is applied to reinsurance contracts held.
Often one single metric can be defined that captures multiple services provided under one contract. Different approaches are\u00a0used by Aegon when assessing the relative weighting of the benefits of different services. In some cases, the weighting is done in a way that directly flows from the composition of the benefits under the contract. For example, for a life insurance product with an account value that can be surrendered, coverage units can be based on the total death benefit as this amount comprises both the account value (investment service) and the excess death benefits (insurance service). In other cases, significant judgment is required. For example, for US long-term care insurance products, multiple drivers impact the maximum daily benefit to which a policyholder could be entitled. To reflect this, the coverage unit is computed using a combination of the\u00a0initial allowed benefit, the benefit period, as well as adjustments for any inflation protection and if the policy is paid-up on the\u00a0contingent non-forfeiture option.
\nAegon reports insurance revenue and insurance service expenses excluding non-distinct investment components. An\u00a0investment component is defined as the amount that an insurance contract requires Aegon to repay to a policyholder, even\u00a0if\u00a0the insured event does not occur.
Aegon determines the investment component when a claim is incurred as an amount is released from the liability for\u00a0remaining coverage. When doing so it considers which payments would have been possible immediately prior to the claims date. For example, a payment might have needed to be made to the policyholder in light of policy surrender, the uptake of a policy loan or the partial withdrawal, or the transfer of an insurance policy to another insurer. The investment component is defined net of any penalty or similar charges.
\nThe nonperformance risk by the reinsurer is based on Aegon\u2019s credit exposure, net of collateral, and the perceived counterparty default risk. In assessing the credit exposure, Aegon takes into account treaty provisions for non-performance, such as the automatic recapture of the reinsured business on default of the reinsurer.\u00a0
When estimating a reinsurer\u2019s default risk, Aegon considers the current financial condition and credit standing of the reinsurer, expert judgment specific to the local reinsurance market and historical data (such as Moody\u2019s loss given default rates). The\u00a0ultimate adjustment reflects the risk of potential reinsurance counterparty failure due to default (i.e. credit events), as\u00a0well\u00a0as disputes resulting in reduced payments and the potential for current conditions to change over time.
\nAegon\u2019s earnings depend significantly upon the extent to which actual claims experience differs from the assumptions used in\u00a0setting the prices for products and establishing the technical liabilities and liabilities for claims. To the extent that actual claims experience is less favorable than the underlying assumptions used in establishing such liabilities, income would be reduced. Furthermore, if these higher claims were part of a permanent trend, Aegon may be required to change best estimate assumptions for future claims which could increase the required reserves for these future claims, which could reduce income. In addition, certain acquisition costs related to the sale of new policies and the purchase of policies already in force have been recorded as assets on the statement of financial position and are being amortized into the income statement over time. If the\u00a0assumptions relating to the future profitability of these policies (such as future claims, investment income and expenses) are\u00a0not realized, the amortization of these costs could be accelerated and may even require write-offs should there be an expectation of unrecoverability. This could have a materially adverse effect on Aegon\u2019s business, results of operations and financial condition.
Sources of underwriting risk include policyholder behavior (such as lapses, surrender of policies or partial withdrawals), policy\u00a0claims (such as mortality, longevity or morbidity) and expenses. For some product lines, Aegon is at risk if policy lapses increase as sometimes Aegon is unable to fully recover upfront expenses in selling a product despite the presence of commission recoveries or surrender charges and fees. There are also products where Aegon is at risk if lapses decrease; for\u00a0example where this would result in a higher utilization rate of product guarantees. For mortality and morbidity risk, Aegon sells certain types of policies that are at risk if mortality or morbidity increases, such as term life insurance and accident insurance, Aegon also sells certain types of policies that are at risk if mortality decreases (longevity risk) such as annuity products. Aegon is also at risk if expenses are higher than the expenses assumed beforehand by management and that were priced into\u00a0the products.
Aegon monitors and manages its underwriting risk by underwriting risk type. Attribution analysis is performed on earnings and reserve movements in order to understand the source of any material variation in actual results from what was expected. Aegon\u2019s units also perform experience studies for underwriting risk assumptions, comparing Aegon\u2019s experience to industry experience as well as combining Aegon\u2019s experience and industry experience based on the depth of the history of each source to Aegon\u2019s underwriting assumptions. Where policy charges are flexible in products, Aegon uses these analyses as the\u00a0basis for modifying these charges, with a view to maintaining a balance between policyholder and shareholder interests. Aegon\u00a0also has the ability to reduce expense levels over time, thus mitigating unfavorable expense variation.
Another way to mitigate underwriting risk is through reinsurance. Aegon uses reinsurance to primarily manage and diversify risk, limit volatility, improve capital positions, limit maximum losses and gain access to reinsurer support. While the objectives and use can vary by region due to local market considerations and product offerings, the use of reinsurance is coordinated and monitored globally.
The key areas where reinsurance is used is to reduce our exposure to mortality and morbidity risk primarily through a\u00a0combination of quota-share and excess of loss reinsurance. Also, excess of loss reinsurance is used to limit the Group's exposure to\u00a0large losses on non-life business.
In order to minimize its reinsurer default exposure, Aegon regularly monitors the creditworthiness of its reinsurers, and where appropriate, arranges additional protection through letters of credit, trust agreements and over-collateralization. For\u00a0certain agreements, funds are withheld for investment rather than relying on the reinsurer to meet investment expectations. Default exposure is further reduced by using multiple reinsurers within certain reinsurance agreements.\u00a0
External reinsurance counterparties are, in general, major global reinsurers. At the same time, local reinsurers are utilized to\u00a0ensure a balance for local capacity and diversification.
| \n \n Concentration of underwriting risk | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Total | \n
| \n \n Insurance contracts | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Direct participating contracts | \n \n \n 74,446 | \n \n \n 43,744 | \n \n \n 219 | \n \n \n 118,409 | \n
| \n \n Without direct participation contracts | \n \n \n 63,210 | \n \n \n 595 | \n \n \n 6,021 | \n \n \n 69,825 | \n
| \n \n Investment contracts with DPF | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Direct participating contracts | \n \n \n - | \n \n \n 22,332 | \n \n \n - | \n \n \n 22,332 | \n
| \n \n On December 31, 2024 | \n \n \n 137,655 | \n \n \n 66,671 | \n \n \n 6,239 | \n \n \n 210,565 | \n
| \n \n Concentration of underwriting risk | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Total | \n
| \n \n Insurance contracts | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Direct participating contracts | \n \n \n 70,436 | \n \n \n 39,687 | \n \n \n 193 | \n \n \n 110,315 | \n
| \n \n Without direct participation contracts | \n \n \n 59,873 | \n \n \n 642 | \n \n \n 6,432 | \n \n \n 66,946 | \n
| \n \n Investment contracts with DPF | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Direct participating contracts | \n \n \n - | \n \n \n 21,594 | \n \n \n - | \n \n \n 21,594 | \n
| \n \n On December 31, 2023 | \n \n \n 130,308 | \n \n \n 61,922 | \n \n \n 6,625 | \n \n \n 198,855 | \n
Sensitivity analysis of net result, shareholders\u2019 equity and CSM to various underwriting risks is shown in the following table. Aegon's best estimate assumptions already include our view of expected future developments and the sensitivities represent an increase or decrease of lapse rates, mortality rates and morbidity rates, compared to Aegon's best estimate assumptions. These underwriting sensitivities were run using a permanent shock applied to all of Aegon's products, exposed to an increase or a decrease in the corresponding rates. Due to the nature of IFRS and how changes in assumptions are absorbed by the CSM while a contract is not onerous, but are reflected in the net result if it is onerous, it is possible that the results of opposite sensitivities seem counterintuitive.
In 2024, the increase in the sensitivities on net result (net of reinsurance) and consequently on shareholder's equity was primarily driven by the impacts of the assumptions updates. These updates led to a rise in onerous cohorts, specifically in the Life portfolio of the Protection Solutions and Financial Assets businesses, affecting the net result (changes in the best estimate liabilities) rather than the CSM.\u00a0The new onerous cohorts also contributed to the change in direction for the Lapse sensitivities on the contracts without direct participation. Additionally, a model update for the Individual Life contracts to no longer stress the lapses after the end of the term period, reduced the benefit of lower lapses on these blocks. The reduction in CSM sensitivity is also due to the increase in onerous cohorts.
| \n | \n\n \n 2024 | \n |||||
| \n | \n\n \n On net result | \n \n \n On shareholders' equity | \n \n \n On CSM | \n |||
| \n \n Estimated approximate effect | \n \n \n Gross of reinsurance | \n \n \n Net of reinsurance | \n \n \n Gross of reinsurance | \n \n \n Net of reinsurance | \n \n \n Gross of reinsurance | \n \n \n Net of reinsurance | \n
| \n \n Without direct participation contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 20% increase in lapse rates | \n \n \n \n \n (3) \n | \n \n \n 32 | \n \n \n 28 | \n \n \n 61 | \n \n \n 18 | \n \n \n \n \n (9) \n | \n
| \n \n 20% decrease in lapse rates | \n \n \n \n \n (22) \n | \n \n \n \n \n (29) \n | \n \n \n \n \n (54) \n | \n \n \n \n \n (59) \n | \n \n \n 30 | \n \n \n 26 | \n
| \n \n 5% increase in mortality rates | \n \n \n \n \n (648) \n | \n \n \n \n \n (236) \n | \n \n \n \n \n (623) \n | \n \n \n \n \n (205) \n | \n \n \n 201 | \n \n \n 186 | \n
| \n \n 5% decrease in mortality rates | \n \n \n 551 | \n \n \n 183 | \n \n \n 517 | \n \n \n 146 | \n \n \n \n \n (115) \n | \n \n \n \n \n (142) \n | \n
| \n \n 10% increase in morbidity rates | \n \n \n \n \n (145) \n | \n \n \n \n \n (141) \n | \n \n \n \n \n (156) \n | \n \n \n \n \n (143) \n | \n \n \n \n \n (860) \n | \n \n \n \n \n (769) \n | \n
| \n \n 10% decrease in morbidity rates | \n \n \n 63 | \n \n \n 60 | \n \n \n 76 | \n \n \n 63 | \n \n \n 1,018 | \n \n \n 919 | \n
| \n \n 5% increase in expenses | \n \n \n \n \n (27) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (25) \n | \n \n \n \n \n (126) \n | \n \n \n \n \n (126) \n | \n
| \n \n 5% decrease in expenses | \n \n \n 26 | \n \n \n 26 | \n \n \n 24 | \n \n \n 24 | \n \n \n 127 | \n \n \n 127 | \n
| \n \n Direct participating contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 20% increase in lapse rates | \n \n \n 123 | \n \n \n 110 | \n \n \n 59 | \n \n \n 81 | \n \n \n \n \n (307) \n | \n \n \n \n \n (473) \n | \n
| \n \n 20% decrease in lapse rates | \n \n \n \n \n (179) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (112) \n | \n \n \n 22 | \n \n \n 445 | \n \n \n 459 | \n
| \n \n 5% increase in mortality rates | \n \n \n \n \n (278) \n | \n \n \n \n \n (213) \n | \n \n \n \n \n (208) \n | \n \n \n \n \n (138) \n | \n \n \n \n \n (592) \n | \n \n \n \n \n (298) \n | \n
| \n \n 5% decrease in mortality rates | \n \n \n 237 | \n \n \n 233 | \n \n \n 164 | \n \n \n 158 | \n \n \n 652 | \n \n \n 277 | \n
| \n \n 10% increase in morbidity rates | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n 2 | \n \n \n 2 | \n
| \n \n 10% decrease in morbidity rates | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n 2 | \n \n \n 2 | \n
| \n \n 5% increase in expenses | \n \n \n \n \n (42) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (22) \n | \n \n \n \n \n (23) \n | \n \n \n \n \n (238) \n | \n \n \n \n \n (236) \n | \n
| \n \n 5% decrease in expenses | \n \n \n 36 | \n \n \n 36 | \n \n \n 15 | \n \n \n 16 | \n \n \n 246 | \n \n \n 244 | \n
| \n \n Non-life contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 10% increase in claims | \n \n \n \n \n (6) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n
| \n \n 10% decrease in claims | \n \n \n 6 | \n \n \n 5 | \n \n \n 9 | \n \n \n 6 | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 2023 | \n |||||
| \n | \n\n \n On net result | \n \n \n On shareholders' equity | \n \n \n On CSM | \n |||
| \n \n Estimated approximate effect | \n \n \n Gross of reinsurance | \n \n \n Net of reinsurance | \n \n \n Gross of reinsurance | \n \n \n Net of reinsurance | \n \n \n Gross of reinsurance | \n \n \n Net of reinsurance | \n
| \n \n Without direct participation contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 20% increase in lapse rates | \n \n \n \n \n (95) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (43) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (126) \n | \n \n \n \n \n (151) \n | \n
| \n \n 20% decrease in lapse rates | \n \n \n 57 | \n \n \n 35 | \n \n \n 41 | \n \n \n 18 | \n \n \n 117 | \n \n \n 169 | \n
| \n \n 5% increase in mortality rates | \n \n \n \n \n (520) \n | \n \n \n \n \n (87) \n | \n \n \n \n \n (443) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (86) \n | \n \n \n 11 | \n
| \n \n 5% decrease in mortality rates | \n \n \n 419 | \n \n \n 11 | \n \n \n 338 | \n \n \n \n \n (62) \n | \n \n \n 177 | \n \n \n 55 | \n
| \n \n 10% increase in morbidity rates | \n \n \n \n \n (139) \n | \n \n \n \n \n (138) \n | \n \n \n \n \n (153) \n | \n \n \n \n \n (152) \n | \n \n \n \n \n (759) \n | \n \n \n \n \n (746) \n | \n
| \n \n 10% decrease in morbidity rates | \n \n \n 53 | \n \n \n 53 | \n \n \n 75 | \n \n \n 77 | \n \n \n 908 | \n \n \n 894 | \n
| \n \n 5% increase in expenses | \n \n \n \n \n (14) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (133) \n | \n \n \n \n \n (134) \n | \n
| \n \n 5% decrease in expenses | \n \n \n 36 | \n \n \n 36 | \n \n \n 35 | \n \n \n 35 | \n \n \n 163 | \n \n \n 164 | \n
| \n \n Direct participating contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 20% increase in lapse rates | \n \n \n 55 | \n \n \n 48 | \n \n \n 56 | \n \n \n 58 | \n \n \n \n \n (32) \n | \n \n \n \n \n (336) \n | \n
| \n \n 20% decrease in lapse rates | \n \n \n \n \n (70) \n | \n \n \n \n \n (53) \n | \n \n \n \n \n (65) \n | \n \n \n \n \n (62) \n | \n \n \n 123 | \n \n \n 428 | \n
| \n \n 5% increase in mortality rates | \n \n \n \n \n (84) \n | \n \n \n \n \n (78) \n | \n \n \n \n \n (71) \n | \n \n \n \n \n (67) \n | \n \n \n \n \n (699) \n | \n \n \n \n \n (314) \n | \n
| \n \n 5% decrease in mortality rates | \n \n \n \n \n (5) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (15) \n | \n \n \n \n \n (23) \n | \n \n \n 835 | \n \n \n 436 | \n
| \n \n 10% increase in morbidity rates | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n 10% decrease in morbidity rates | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n 5% increase in expenses | \n \n \n \n \n (13) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (205) \n | \n \n \n \n \n (201) \n | \n
| \n \n 5% decrease in expenses | \n \n \n 12 | \n \n \n 12 | \n \n \n 13 | \n \n \n 13 | \n \n \n 206 | \n \n \n 203 | \n
| \n \n Non-life contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 10% increase in claims | \n \n \n \n \n (6) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n
| \n \n 10% decrease in claims | \n \n \n 6 | \n \n \n 5 | \n \n \n 9 | \n \n \n 6 | \n \n \n - | \n \n \n - | \n
Aegon has chosen to apply the risk mitigation option and recognize changes in fulfillment value of products with direct participating features, for example Variable Annuity products issued in the Americas or by Aegon UK, in the P&L and OCI, instead of adjusting the CSM. The adjustment to the CSM that would otherwise have\u00a0been made on December 31, 2024 is\u00a0EUR\u00a02,020\u00a0million (2023: EUR 1,476 million). For more details on\u00a0the change in the fulfillment cash flows relating to the\u00a0hedged position see note 20 Derivatives\u00a0and for the split between P&L and OCI, see note 9 Insurance net investment result.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInsuranceContractsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5685m3776p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n
| \n \n Incurred claims and other incurred insurance service expenses | \n \n \n \n \n (7,954) \n | \n \n \n \n \n (43) \n | \n \n \n \n \n (8,404) \n | \n \n \n \n \n (36) \n | \n \n \n \n \n (9,030) \n | \n \n \n \n \n (54) \n | \n
| \n \n Changes in fulfilment cash flows relating to incurred claims | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n 8 | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n \n \n (1,109) \n | \n \n \n - | \n \n \n \n \n (1,079) \n | \n \n \n - | \n \n \n \n \n (1,247) \n | \n \n \n - | \n
| \n \n Amortization of insurance acquisition costs | \n \n \n \n \n (553) \n | \n \n \n - | \n \n \n \n \n (558) \n | \n \n \n - | \n \n \n \n \n (545) \n | \n \n \n - | \n
| \n \n Contracts not measured under the PAA | \n \n \n \n \n (9,629) \n | \n \n \n \n \n (43) \n | \n \n \n \n \n (10,058) \n | \n \n \n \n \n (36) \n | \n \n \n \n \n (10,815) \n | \n \n \n \n \n (54) \n | \n
| \n \n Contracts measured under the PAA | \n \n \n \n \n (118) \n | \n \n \n - | \n \n \n \n \n (132) \n | \n \n \n - | \n \n \n \n \n (228) \n | \n \n \n - | \n
| \n \n Total insurance service expenses | \n \n \n \n \n (9,747) \n | \n \n \n \n \n (43) \n | \n \n \n \n \n (10,190) \n | \n \n \n \n \n (36) \n | \n \n \n \n \n (11,043) \n | \n \n \n \n \n (54) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Assumption changes that relate to (a reversal of) underlying onerous contracts | \n \n \n 56 | \n \n \n 31 | \n \n \n 38 | \n
| \n \n Experience adjustments that relate to (a reversal of) underlying onerous contracts | \n \n \n 398 | \n \n \n 516 | \n \n \n 562 | \n
| \n \n Release of the contractual service margin for services received | \n \n \n \n \n (14) \n | \n \n \n \n \n (26) \n | \n \n \n 63 | \n
| \n \n Release of risk adjustment for non-financial risk | \n \n \n \n \n (83) \n | \n \n \n \n \n (118) \n | \n \n \n \n \n (134) \n | \n
| \n \n Experience adjustments on current service | \n \n \n \n \n (36) \n | \n \n \n \n \n (217) \n | \n \n \n \n \n (280) \n | \n
| \n \n Changes in fulfilment cash flows relating to incurred claims | \n \n \n 3 | \n \n \n \n \n (2) \n | \n \n \n \n \n (12) \n | \n
| \n \n \n \n Loss on retrospective reinsurance (reinsurance purchased relating to incurred claims) \n | \n \n \n 1 | \n \n \n \n \n (17) \n | \n \n \n - | \n
| \n \n New contracts issued/acquired: loss on initial recognition of underlying contracts | \n \n \n - | \n \n \n 12 | \n \n \n 31 | \n
| \n \n Establishing of loss recovery component from onerous underlying contracts | \n \n \n - | \n \n \n 7 | \n \n \n 8 | \n
| \n \n Reversals of a loss-recovery component other than changes in the FCF of reinsurance contracts held | \n \n \n \n \n (1) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n
| \n \n Contracts not measured under the PAA | \n \n \n 325 | \n \n \n 181 | \n \n \n 274 | \n
| \n \n Contracts measured under the PAA | \n \n \n - | \n \n \n 1 | \n \n \n 1 | \n
| \n \n Net income / (expenses) on reinsurance held | \n \n \n 325 | \n \n \n 182 | \n \n \n 275 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Impairment losses on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (103) \n | \n \n \n \n \n (77) \n | \n \n \n \n \n (121) \n | \n
| \n \n Loans | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \n \n \n 10 | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Impairment reversals on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n 3 | \n \n \n 37 | \n \n \n 26 | \n
| \n \n Impairment (losses) and reversals on non-financial assets and receivables | \n \n \n \n \n (3) \n | \n \n \n \n \n (31) \n | \n \n \n \n \n (17) \n | \n
| \n \n On December 31 | \n \n \n \n \n (190) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (95) \n | \n
Impairment losses in 2024 increased by EUR 104 million to EUR 190 million mainly due to expected credit loss (ECL) balance increases in Aegon US for bonds and mortgages following more adverse economic scenario output and real estate occupancy rates.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Impairment losses on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (40) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (13) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Impairment losses and reversals on non-financial assets and receivables | \n \n \n \n \n (7) \n | \n \n \n \n \n (29) \n | \n \n \n \n \n (30) \n | \n
| \n \n On December 31 | \n \n \n \n \n (47) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (43) \n | \n
| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Interest charges | \n \n \n 11.1 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n \n Other financing income | \n \n | \n\n \n - | \n \n \n - | \n \n \n 5 | \n
| \n \n On December 31 | \n \n | \n\n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (178) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Subordinated loans | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n \n \n \n \n (119) \n | \n
| \n \n Trust pass-through securities | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n Borrowings | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (54) \n | \n
| \n \n On December 31 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Policyholder claims and benefits | \n \n \n 6,520 | \n \n \n - | \n \n \n 6,965 | \n \n \n - | \n \n \n 7,736 | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n 1,111 | \n \n \n - | \n \n \n 1,081 | \n \n \n - | \n \n \n 1,250 | \n \n \n - | \n
| \n \n Commissions | \n \n \n 1,449 | \n \n \n 937 | \n \n \n 1,403 | \n \n \n 1,069 | \n \n \n 1,214 | \n \n \n 1,011 | \n
| \n \n Handling and clearing fees | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 32 | \n \n \n 1 | \n \n \n 31 | \n
| \n \n Right of use assets \u2013 interest expense | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \n
| \n \n Employee expenses | \n \n \n 620 | \n \n \n 1,198 | \n \n \n 604 | \n \n \n 1,107 | \n \n \n 637 | \n \n \n 1,059 | \n
| \n \n Administration expenses | \n \n \n 500 | \n \n \n 785 | \n \n \n 551 | \n \n \n 780 | \n \n \n 594 | \n \n \n 669 | \n
| \n \n Deferred transaction expenses | \n \n \n - | \n \n \n \n \n (35) \n | \n \n \n - | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n
| \n \n Amortization of deferred expenses | \n \n \n - | \n \n \n 22 | \n \n \n - | \n \n \n 21 | \n \n \n - | \n \n \n 28 | \n
| \n \n Amortization of other intangibles | \n \n \n - | \n \n \n 17 | \n \n \n - | \n \n \n 13 | \n \n \n - | \n \n \n 9 | \n
| \n \n Total | \n \n \n 10,200 | \n \n \n 2,961 | \n \n \n 10,604 | \n \n \n 3,000 | \n \n \n 11,433 | \n \n \n 2,786 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Amounts attributed to insurance acquisition cash flows (see cash flow in note 29) \n | \n \n \n \n \n (983) \n | \n \n \n - | \n \n \n \n \n (956) \n | \n \n \n - | \n \n \n \n \n (903) \n | \n \n \n - | \n
| \n \n \n \n Amortization of insurance acquisition cash flows (see note 6/7) \n | \n \n \n 553 | \n \n \n - | \n \n \n 558 | \n \n \n - | \n \n \n 545 | \n \n \n - | \n
| \n \n Amortization of insurance acquisition cash flows PAA | \n \n \n 20 | \n \n \n - | \n \n \n 19 | \n \n \n - | \n \n \n 22 | \n \n \n - | \n
| \n \n Total other operating expenses | \n \n \n 9,790 | \n \n \n 2,961 | \n \n \n 10,226 | \n \n \n 3,000 | \n \n \n 11,097 | \n \n \n 2,786 | \n
| \n \n Employee expenses | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Salaries | \n \n \n 1,205 | \n \n \n 1,131 | \n \n \n 1,138 | \n
| \n \n Post-employment benefit costs | \n \n \n 127 | \n \n \n 125 | \n \n \n 117 | \n
| \n \n Social security charges | \n \n \n 118 | \n \n \n 107 | \n \n \n 101 | \n
| \n \n Other personnel costs | \n \n \n 310 | \n \n \n 294 | \n \n \n 292 | \n
| \n \n Shares | \n \n \n 58 | \n \n \n 54 | \n \n \n 48 | \n
| \n \n Total | \n \n \n 1,818 | \n \n \n 1,711 | \n \n \n 1,696 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Included in employee expenses: | \n \n | \n\n | \n\n | \n
| \n \n Defined contribution expenses | \n \n \n 61 | \n \n \n 57 | \n \n \n 48 | \n
Other operating expenses that arise directly from or can be allocated to the fulfillment of insurance contracts or investment contracts with discretionary participating features, are considered insurance service expenses and recognized in the income statement as services under the contract are provided (see note\u00a07 Insurance service expenses). Other operating expenses that do not meet the definition of fulfillment cash flows, including unexpected amounts of waste labor and other resources (e.g. start-up costs of new businesses) are expensed when incurred.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Other income | \n \n \n 153 | \n \n \n 35 | \n \n \n 341 | \n
| \n \n Other charges | \n \n \n \n \n (8) \n | \n \n \n \n \n (92) \n | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 145 | \n \n \n \n \n (57) \n | \n \n \n 341 | \n
The other charges in 2023 mainly relate to the book loss of the divestment of Aegon's businesses in Poland and Romania to\u00a0Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG), amounting to EUR 78 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f6091m3793p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n
| \n \n Incurred claims and other incurred insurance service expenses | \n \n \n \n \n (7,954) \n | \n \n \n \n \n (43) \n | \n \n \n \n \n (8,404) \n | \n \n \n \n \n (36) \n | \n \n \n \n \n (9,030) \n | \n \n \n \n \n (54) \n | \n
| \n \n Changes in fulfilment cash flows relating to incurred claims | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n 8 | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n \n \n (1,109) \n | \n \n \n - | \n \n \n \n \n (1,079) \n | \n \n \n - | \n \n \n \n \n (1,247) \n | \n \n \n - | \n
| \n \n Amortization of insurance acquisition costs | \n \n \n \n \n (553) \n | \n \n \n - | \n \n \n \n \n (558) \n | \n \n \n - | \n \n \n \n \n (545) \n | \n \n \n - | \n
| \n \n Contracts not measured under the PAA | \n \n \n \n \n (9,629) \n | \n \n \n \n \n (43) \n | \n \n \n \n \n (10,058) \n | \n \n \n \n \n (36) \n | \n \n \n \n \n (10,815) \n | \n \n \n \n \n (54) \n | \n
| \n \n Contracts measured under the PAA | \n \n \n \n \n (118) \n | \n \n \n - | \n \n \n \n \n (132) \n | \n \n \n - | \n \n \n \n \n (228) \n | \n \n \n - | \n
| \n \n Total insurance service expenses | \n \n \n \n \n (9,747) \n | \n \n \n \n \n (43) \n | \n \n \n \n \n (10,190) \n | \n \n \n \n \n (36) \n | \n \n \n \n \n (11,043) \n | \n \n \n \n \n (54) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Policyholder claims and benefits | \n \n \n 6,520 | \n \n \n - | \n \n \n 6,965 | \n \n \n - | \n \n \n 7,736 | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n 1,111 | \n \n \n - | \n \n \n 1,081 | \n \n \n - | \n \n \n 1,250 | \n \n \n - | \n
| \n \n Commissions | \n \n \n 1,449 | \n \n \n 937 | \n \n \n 1,403 | \n \n \n 1,069 | \n \n \n 1,214 | \n \n \n 1,011 | \n
| \n \n Handling and clearing fees | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 32 | \n \n \n 1 | \n \n \n 31 | \n
| \n \n Right of use assets \u2013 interest expense | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \n
| \n \n Employee expenses | \n \n \n 620 | \n \n \n 1,198 | \n \n \n 604 | \n \n \n 1,107 | \n \n \n 637 | \n \n \n 1,059 | \n
| \n \n Administration expenses | \n \n \n 500 | \n \n \n 785 | \n \n \n 551 | \n \n \n 780 | \n \n \n 594 | \n \n \n 669 | \n
| \n \n Deferred transaction expenses | \n \n \n - | \n \n \n \n \n (35) \n | \n \n \n - | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n
| \n \n Amortization of deferred expenses | \n \n \n - | \n \n \n 22 | \n \n \n - | \n \n \n 21 | \n \n \n - | \n \n \n 28 | \n
| \n \n Amortization of other intangibles | \n \n \n - | \n \n \n 17 | \n \n \n - | \n \n \n 13 | \n \n \n - | \n \n \n 9 | \n
| \n \n Total | \n \n \n 10,200 | \n \n \n 2,961 | \n \n \n 10,604 | \n \n \n 3,000 | \n \n \n 11,433 | \n \n \n 2,786 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Amounts attributed to insurance acquisition cash flows (see cash flow in note 29) \n | \n \n \n \n \n (983) \n | \n \n \n - | \n \n \n \n \n (956) \n | \n \n \n - | \n \n \n \n \n (903) \n | \n \n \n - | \n
| \n \n \n \n Amortization of insurance acquisition cash flows (see note 6/7) \n | \n \n \n 553 | \n \n \n - | \n \n \n 558 | \n \n \n - | \n \n \n 545 | \n \n \n - | \n
| \n \n Amortization of insurance acquisition cash flows PAA | \n \n \n 20 | \n \n \n - | \n \n \n 19 | \n \n \n - | \n \n \n 22 | \n \n \n - | \n
| \n \n Total other operating expenses | \n \n \n 9,790 | \n \n \n 2,961 | \n \n \n 10,226 | \n \n \n 3,000 | \n \n \n 11,097 | \n \n \n 2,786 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Insurance contracts not measured under PAA - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 1,589 | \n \n \n \n \n (1,042) \n | \n \n \n \n \n (362) \n | \n \n \n 185 | \n
| \n \n Opening liabilities | \n \n \n 159,113 | \n \n \n 945 | \n \n \n 17,349 | \n \n \n 177,407 | \n
| \n \n Net opening balance, on January 1, 2024 | \n \n \n 157,524 | \n \n \n 1,987 | \n \n \n 17,711 | \n \n \n 177,222 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (9,656) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (9,656) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n \n \n (317) \n | \n \n \n 8,275 | \n \n \n 7,958 | \n
| \n \n Amortization of insurance acquisition cash flows | \n \n \n 553 | \n \n \n - | \n \n \n - | \n \n \n 553 | \n
| \n \n Losses (and reversal of losses) on onerous contracts | \n \n \n - | \n \n \n 1,118 | \n \n \n - | \n \n \n 1,118 | \n
| \n \n Insurance service expenses | \n \n \n 553 | \n \n \n 801 | \n \n \n 8,275 | \n \n \n 9,629 | \n
| \n \n Investment components | \n \n \n \n \n (5,506) \n | \n \n \n - | \n \n \n 5,506 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (14,609) \n | \n \n \n 801 | \n \n \n 13,781 | \n \n \n \n \n (27) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 11,924 | \n \n \n 62 | \n \n \n - | \n \n \n 11,986 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n \n \n (6,128) \n | \n \n \n \n \n (299) \n | \n \n \n \n \n (5,465) \n | \n \n \n \n \n (11,892) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n 8 | \n \n \n \n \n (94) \n | \n \n \n - | \n \n \n \n \n (85) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (34) \n | \n \n \n 14 | \n \n \n 17 | \n \n \n \n \n (3) \n | \n
| \n \n Other movements | \n \n \n 1 | \n \n \n - | \n \n \n \n \n (5) \n | \n \n \n \n \n (4) \n | \n
| \n \n Transfer (to)/from other headings | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 9,286 | \n \n \n 153 | \n \n \n 1,557 | \n \n \n 10,996 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 157,971 | \n \n \n 2,625 | \n \n \n 27,596 | \n \n \n 188,193 | \n
| \n \n Closing assets | \n \n \n 1,886 | \n \n \n \n \n (1,373) \n | \n \n \n \n \n (387) \n | \n \n \n 125 | \n
| \n \n Closing liabilities | \n \n \n 159,857 | \n \n \n 1,252 | \n \n \n 27,209 | \n \n \n 188,318 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Insurance contracts not measured under PAA - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 40 | \n \n \n \n \n (1) \n | \n \n \n \n \n (2) \n | \n \n \n 36 | \n
| \n \n Opening liabilities | \n \n \n 163,758 | \n \n \n 1,455 | \n \n \n 10,468 | \n \n \n 175,681 | \n
| \n \n Net opening balance, on January 1, 2023 | \n \n \n 163,719 | \n \n \n 1,456 | \n \n \n 10,470 | \n \n \n 175,645 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (10,195) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (10,195) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n \n \n (186) \n | \n \n \n 8,593 | \n \n \n 8,407 | \n
| \n \n Amortization of insurance acquisition cash flows | \n \n \n 558 | \n \n \n - | \n \n \n - | \n \n \n 558 | \n
| \n \n Losses (and reversal of losses) on onerous contracts | \n \n \n - | \n \n \n 1,084 | \n \n \n - | \n \n \n 1,084 | \n
| \n \n Adjustments to liabilities for incurred claims | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 9 | \n
| \n \n Insurance service expenses | \n \n \n 558 | \n \n \n 899 | \n \n \n 8,601 | \n \n \n 10,058 | \n
| \n \n Investment components | \n \n \n \n \n (4,834) \n | \n \n \n - | \n \n \n 4,834 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (14,471) \n | \n \n \n 898 | \n \n \n 13,436 | \n \n \n \n \n (137) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 17,262 | \n \n \n 81 | \n \n \n - | \n \n \n 17,343 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n \n \n (4,892) \n | \n \n \n \n \n (150) \n | \n \n \n \n \n (5,582) \n | \n \n \n \n \n (10,624) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n \n \n (347) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (347) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (1) \n | \n \n \n \n \n (211) \n | \n \n \n \n \n (133) \n | \n \n \n \n \n (345) \n | \n
| \n \n Other movements | \n \n \n 20 | \n \n \n - | \n \n \n - | \n \n \n 20 | \n
| \n \n Transfer (to)/from other headings | \n \n \n \n \n (514) \n | \n \n \n \n \n (33) \n | \n \n \n 36 | \n \n \n \n \n (512) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n \n \n (3,252) \n | \n \n \n \n \n (54) \n | \n \n \n \n \n (515) \n | \n \n \n \n \n (3,821) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 157,524 | \n \n \n 1,987 | \n \n \n 17,711 | \n \n \n 177,222 | \n
| \n \n Closing assets | \n \n \n 1,589 | \n \n \n \n \n (1,042) \n | \n \n \n \n \n (362) \n | \n \n \n 185 | \n
| \n \n Closing liabilities | \n \n \n 159,113 | \n \n \n 945 | \n \n \n 17,349 | \n \n \n 177,407 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Investment contracts with DPF - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Net balance, on January 1, 2024 | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (80) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (80) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 43 | \n \n \n 43 | \n
| \n \n Insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 43 | \n \n \n 43 | \n
| \n \n Investment components | \n \n \n \n \n (2,934) \n | \n \n \n - | \n \n \n 2,934 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (3,014) \n | \n \n \n - | \n \n \n 2,977 | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n 452 | \n \n \n - | \n \n \n \n \n (2,977) \n | \n \n \n \n \n (2,525) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 1,030 | \n \n \n - | \n \n \n - | \n \n \n 1,030 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Investment contracts with DPF - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,055 | \n \n \n - | \n \n \n - | \n \n \n 21,055 | \n
| \n \n Net balance, on January 1, 2023 | \n \n \n 21,055 | \n \n \n - | \n \n \n - | \n \n \n 21,055 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (64) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (64) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 36 | \n \n \n 36 | \n
| \n \n Insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 36 | \n \n \n 36 | \n
| \n \n Investment components | \n \n \n \n \n (2,417) \n | \n \n \n - | \n \n \n 2,418 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (2,481) \n | \n \n \n - | \n \n \n 2,453 | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n 423 | \n \n \n - | \n \n \n \n \n (2,453) \n | \n \n \n \n \n (2,030) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other movements | \n \n \n 172 | \n \n \n - | \n \n \n - | \n \n \n 172 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 503 | \n \n \n - | \n \n \n - | \n \n \n 503 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Insurance contracts not measured under PAA - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 475 | \n \n \n \n \n (286) \n | \n \n \n \n \n (4) \n | \n \n \n 185 | \n
| \n \n Opening liabilities | \n \n \n 166,036 | \n \n \n 3,251 | \n \n \n 8,120 | \n \n \n 177,407 | \n
| \n \n Net opening balance, on January 1, 2024 | \n \n \n 165,562 | \n \n \n 3,537 | \n \n \n 8,124 | \n \n \n 177,222 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (317) \n | \n \n \n \n \n (131) \n | \n \n \n 448 | \n \n \n - | \n
| \n \n Changes in estimates that result in (a reversal of) onerous contracts | \n \n \n 1,063 | \n \n \n 1 | \n \n \n - | \n \n \n 1,064 | \n
| \n \n New contracts issued \u2013 non-onerous | \n \n \n \n \n (648) \n | \n \n \n 102 | \n \n \n 546 | \n \n \n - | \n
| \n \n New contracts issued \u2013 onerous | \n \n \n 36 | \n \n \n 18 | \n \n \n - | \n \n \n 54 | \n
| \n \n Changes that relate to future service | \n \n \n 134 | \n \n \n \n \n (10) \n | \n \n \n 994 | \n \n \n 1,118 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (958) \n | \n \n \n \n \n (958) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (305) \n | \n \n \n - | \n \n \n \n \n (305) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 101 | \n \n \n - | \n \n \n - | \n \n \n 101 | \n
| \n \n Revenue recognized for incurred policyholder tax expenses | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Changes that relate to current service | \n \n \n 103 | \n \n \n \n \n (305) \n | \n \n \n \n \n (958) \n | \n \n \n \n \n (1,160) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Experience adjustments on claims incurred | \n \n \n 15 | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 14 | \n
| \n \n Changes that relate to past service | \n \n \n 15 | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 14 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n 252 | \n \n \n \n \n (315) \n | \n \n \n 36 | \n \n \n \n \n (27) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n General model | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n \n 2,693 | \n \n \n 178 | \n \n \n 225 | \n \n \n 3,096 | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n \n \n \n (1,910) \n | \n \n \n \n \n (11) \n | \n \n \n - | \n \n \n \n \n (1,921) \n | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n \n 121 | \n \n \n - | \n \n \n - | \n \n \n 121 | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 12,719 | \n \n \n - | \n \n \n - | \n \n \n 12,719 | \n
| \n \n Change in fulfilment value of products with direct participating features not recognized in CSM due to risk mitigation option | \n \n \n \n \n (2,029) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,029) \n | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 11,594 | \n \n \n 167 | \n \n \n 225 | \n \n \n 11,986 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 15,377 | \n \n \n - | \n \n \n - | \n \n \n 15,377 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (26,274) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26,274) \n | \n
| \n \n Acquisition costs paid | \n \n \n \n \n (963) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (963) \n | \n
| \n \n Other | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (32) \n | \n
| \n \n Cash flows | \n \n \n \n \n (11,892) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (11,892) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n \n \n (128) \n | \n \n \n - | \n \n \n 43 | \n \n \n \n \n (85) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (14) \n | \n \n \n 6 | \n \n \n 6 | \n \n \n \n \n (3) \n | \n
| \n \n Other | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n Other movements | \n \n \n \n \n (147) \n | \n \n \n 6 | \n \n \n 48 | \n \n \n \n \n (92) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 10,242 | \n \n \n 224 | \n \n \n 529 | \n \n \n 10,996 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 175,611 | \n \n \n 3,618 | \n \n \n 8,964 | \n \n \n 188,193 | \n
| \n \n Closing assets | \n \n \n 452 | \n \n \n \n \n (323) \n | \n \n \n \n \n (5) \n | \n \n \n 125 | \n
| \n \n Closing liabilities | \n \n \n 176,063 | \n \n \n 3,295 | \n \n \n 8,959 | \n \n \n 188,318 | \n
| \n \n Insurance contracts not measured under PAA - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 100 | \n \n \n - | \n \n \n \n \n (64) \n | \n \n \n 36 | \n
| \n \n Opening liabilities | \n \n \n 163,381 | \n \n \n 3,436 | \n \n \n 8,865 | \n \n \n 175,681 | \n
| \n \n Net opening balance, on January 1, 2023 | \n \n \n 163,280 | \n \n \n 3,435 | \n \n \n 8,929 | \n \n \n 175,645 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (204) \n | \n \n \n 380 | \n \n \n \n \n (176) \n | \n \n \n - | \n
| \n \n Changes in estimates that result in (a reversal of) onerous contracts | \n \n \n 974 | \n \n \n 51 | \n \n \n - | \n \n \n 1,025 | \n
| \n \n New contracts issued \u2013 non-onerous | \n \n \n \n \n (563) \n | \n \n \n 90 | \n \n \n 473 | \n \n \n - | \n
| \n \n New contracts issued \u2013 onerous | \n \n \n 38 | \n \n \n 22 | \n \n \n - | \n \n \n 60 | \n
| \n \n Changes that relate to future service | \n \n \n 245 | \n \n \n 542 | \n \n \n 297 | \n \n \n 1,084 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (952) \n | \n \n \n \n \n (952) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (345) \n | \n \n \n - | \n \n \n \n \n (345) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 75 | \n \n \n - | \n \n \n - | \n \n \n 75 | \n
| \n \n Revenue recognized for incurred policyholder tax expenses | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n \n Changes that relate to current service | \n \n \n 60 | \n \n \n \n \n (345) \n | \n \n \n \n \n (952) \n | \n \n \n \n \n (1,238) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Experience adjustments on claims incurred | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n 17 | \n
| \n \n Changes that relate to past service | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n 17 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n 322 | \n \n \n 197 | \n \n \n \n \n (656) \n | \n \n \n \n \n (137) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n General model | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n \n 2,680 | \n \n \n 195 | \n \n \n 223 | \n \n \n 3,098 | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n \n 1,573 | \n \n \n 14 | \n \n \n - | \n \n \n 1,587 | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n \n 425 | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n 421 | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 13,730 | \n \n \n - | \n \n \n - | \n \n \n 13,730 | \n
| \n \n Change in fulfilment value of products with direct participating features not recognized in CSM due to risk mitigation option | \n \n \n \n \n (1,493) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,493) \n | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 16,915 | \n \n \n 205 | \n \n \n 223 | \n \n \n 17,343 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 14,203 | \n \n \n - | \n \n \n - | \n \n \n 14,203 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (23,862) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (23,862) \n | \n
| \n \n Acquisition costs paid | \n \n \n \n \n (936) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (936) \n | \n
| \n \n Other | \n \n \n \n \n (30) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (30) \n | \n
| \n \n Cash flows | \n \n \n \n \n (10,624) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (10,624) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n \n \n (283) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (59) \n | \n \n \n \n \n (347) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (59) \n | \n \n \n \n \n (197) \n | \n \n \n \n \n (89) \n | \n \n \n \n \n (345) \n | \n
| \n \n Other | \n \n \n 41 | \n \n \n - | \n \n \n \n \n (21) \n | \n \n \n 20 | \n
| \n \n Transfer (to)/from other headings | \n \n \n \n \n (511) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (512) \n | \n
| \n \n Other movements | \n \n \n \n \n (811) \n | \n \n \n \n \n (203) \n | \n \n \n \n \n (169) \n | \n \n \n \n \n (1,184) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n \n \n (3,520) \n | \n \n \n \n \n (98) \n | \n \n \n \n \n (203) \n | \n \n \n \n \n (3,821) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 165,562 | \n \n \n 3,537 | \n \n \n 8,124 | \n \n \n 177,222 | \n
| \n \n Closing assets | \n \n \n 475 | \n \n \n \n \n (286) \n | \n \n \n \n \n (4) \n | \n \n \n 185 | \n
| \n \n Closing liabilities | \n \n \n 166,036 | \n \n \n 3,251 | \n \n \n 8,120 | \n \n \n 177,407 | \n
| \n \n Investment contracts with DPF - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n \n Net balance, on January 1, 2024 | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (70) \n | \n \n \n \n \n (7) \n | \n \n \n 76 | \n \n \n - | \n
| \n \n Changes that relate to future service | \n \n \n \n \n (70) \n | \n \n \n \n \n (7) \n | \n \n \n 76 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n \n \n (33) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (14) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 11 | \n
| \n \n Changes that relate to current service | \n \n \n 11 | \n \n \n \n \n (14) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes that relate to past service | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n \n \n (59) \n | \n \n \n \n \n (21) \n | \n \n \n 43 | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 470 | \n \n \n - | \n \n \n - | \n \n \n 470 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (2,995) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,995) \n | \n
| \n \n Cash flows | \n \n \n \n \n (2,525) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,525) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Other movements | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 1,015 | \n \n \n 6 | \n \n \n 10 | \n \n \n 1,030 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n
| \n \n Investment contracts with DPF - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 20,874 | \n \n \n 109 | \n \n \n 72 | \n \n \n 21,055 | \n
| \n \n Net balance, on January 1, 2023 | \n \n \n 20,874 | \n \n \n 109 | \n \n \n 72 | \n \n \n 21,055 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (152) \n | \n \n \n 31 | \n \n \n 121 | \n \n \n - | \n
| \n \n Changes that relate to future service | \n \n \n \n \n (152) \n | \n \n \n 31 | \n \n \n 121 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n \n \n (17) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Changes that relate to current service | \n \n \n 4 | \n \n \n \n \n (15) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes that relate to past service | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n \n \n (148) \n | \n \n \n 16 | \n \n \n 104 | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 475 | \n \n \n - | \n \n \n - | \n \n \n 475 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (2,506) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,506) \n | \n
| \n \n Cash flows | \n \n \n \n \n (2,030) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,030) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n 170 | \n \n \n - | \n \n \n 1 | \n \n \n 172 | \n
| \n \n Other movements | \n \n \n 170 | \n \n \n - | \n \n \n 1 | \n \n \n 172 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 498 | \n \n \n 3 | \n \n \n 2 | \n \n \n 503 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Assumption changes that relate to (a reversal of) underlying onerous contracts | \n \n \n 56 | \n \n \n 31 | \n \n \n 38 | \n
| \n \n Experience adjustments that relate to (a reversal of) underlying onerous contracts | \n \n \n 398 | \n \n \n 516 | \n \n \n 562 | \n
| \n \n Release of the contractual service margin for services received | \n \n \n \n \n (14) \n | \n \n \n \n \n (26) \n | \n \n \n 63 | \n
| \n \n Release of risk adjustment for non-financial risk | \n \n \n \n \n (83) \n | \n \n \n \n \n (118) \n | \n \n \n \n \n (134) \n | \n
| \n \n Experience adjustments on current service | \n \n \n \n \n (36) \n | \n \n \n \n \n (217) \n | \n \n \n \n \n (280) \n | \n
| \n \n Changes in fulfilment cash flows relating to incurred claims | \n \n \n 3 | \n \n \n \n \n (2) \n | \n \n \n \n \n (12) \n | \n
| \n \n \n \n Loss on retrospective reinsurance (reinsurance purchased relating to incurred claims) \n | \n \n \n 1 | \n \n \n \n \n (17) \n | \n \n \n - | \n
| \n \n New contracts issued/acquired: loss on initial recognition of underlying contracts | \n \n \n - | \n \n \n 12 | \n \n \n 31 | \n
| \n \n Establishing of loss recovery component from onerous underlying contracts | \n \n \n - | \n \n \n 7 | \n \n \n 8 | \n
| \n \n Reversals of a loss-recovery component other than changes in the FCF of reinsurance contracts held | \n \n \n \n \n (1) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n
| \n \n Contracts not measured under the PAA | \n \n \n 325 | \n \n \n 181 | \n \n \n 274 | \n
| \n \n Contracts measured under the PAA | \n \n \n - | \n \n \n 1 | \n \n \n 1 | \n
| \n \n Net income / (expenses) on reinsurance held | \n \n \n 325 | \n \n \n 182 | \n \n \n 275 | \n
| \n \n Reinsurance contracts held | \n \n \n Contracts not measured under the PAA | \n \n \n Contracts measured under the PAA | \n \n \n Total | \n
| \n \n Portfolios in an asset position | \n \n \n 16,015 | \n \n \n 7 | \n \n \n 16,021 | \n
| \n \n Portfolios in a liability position | \n \n \n 303 | \n \n \n - | \n \n \n 303 | \n
| \n \n On December 31, 2024 | \n \n \n 15,712 | \n \n \n 7 | \n \n \n 15,719 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Portfolios in an asset position | \n \n \n 16,601 | \n \n \n 7 | \n \n \n 16,608 | \n
| \n \n Portfolios in a liability position | \n \n \n 608 | \n \n \n - | \n \n \n 608 | \n
| \n \n On December 31, 2023 | \n \n \n 15,993 | \n \n \n 7 | \n \n \n 16,000 | \n
| \n | \n\n \n Asset for remaining coverage | \n \n | \n\n | \n|
| \n \n Reinsurance contracts held - by type, no PAA | \n \n \n Excluding loss recovery component | \n \n \n Loss recovery component | \n \n \n Asset for incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 16,457 | \n \n \n 349 | \n \n \n \n \n (205) \n | \n \n \n 16,601 | \n
| \n \n Opening liabilities | \n \n \n 1,738 | \n \n \n \n \n (947) \n | \n \n \n \n \n (183) \n | \n \n \n 608 | \n
| \n \n Net opening balance, on January 1, 2024 | \n \n \n 14,719 | \n \n \n 1,296 | \n \n \n \n \n (22) \n | \n \n \n 15,993 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in the statements of P&L and OCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Net expenses from reinsurance contracts | \n \n \n \n \n (619) \n | \n \n \n 876 | \n \n \n 69 | \n \n \n 325 | \n
| \n \n \n \n Other reinsurance finance income / (expenses) \n | \n \n \n 41 | \n \n \n 19 | \n \n \n - | \n \n \n 61 | \n
| \n \n Effect of changes in risk of non-performance of reinsurers | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (5) \n | \n
| \n \n Total changes in the statements of P&L and OCI | \n \n \n \n \n (583) \n | \n \n \n 895 | \n \n \n 69 | \n \n \n 380 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n \n \n (1,460) \n | \n \n \n \n \n (140) \n | \n \n \n \n \n (268) \n | \n \n \n \n \n (1,869) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other movements | \n \n \n 371 | \n \n \n \n \n (409) \n | \n \n \n 234 | \n \n \n 196 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 908 | \n \n \n 103 | \n \n \n - | \n \n \n 1,011 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on 31 December 31, 2024 | \n \n \n 13,954 | \n \n \n 1,745 | \n \n \n 13 | \n \n \n 15,712 | \n
| \n \n Closing assets | \n \n \n 15,965 | \n \n \n 475 | \n \n \n \n \n (426) \n | \n \n \n 16,015 | \n
| \n \n Closing liabilities | \n \n \n 2,011 | \n \n \n \n \n (1,270) \n | \n \n \n \n \n (439) \n | \n \n \n 303 | \n
| \n | \n\n \n Asset for remaining coverage | \n \n | \n\n | \n|
| \n \n Reinsurance contracts held - by type, no PAA | \n \n \n Excluding loss recovery component | \n \n \n Loss recovery component | \n \n \n Asset for incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 14,801 | \n \n \n 1,607 | \n \n \n 526 | \n \n \n 16,934 | \n
| \n \n Opening liabilities | \n \n \n 217 | \n \n \n 57 | \n \n \n \n \n (5) \n | \n \n \n 270 | \n
| \n \n Net opening balance, on January 1, 2023 | \n \n \n 14,584 | \n \n \n 1,549 | \n \n \n 530 | \n \n \n 16,664 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in the statements of P&L and OCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Net expenses from reinsurance contracts | \n \n \n 453 | \n \n \n \n \n (235) \n | \n \n \n \n \n (38) \n | \n \n \n 181 | \n
| \n \n \n \n Other reinsurance finance income / (expenses) \n | \n \n \n 1,026 | \n \n \n 34 | \n \n \n - | \n \n \n 1,060 | \n
| \n \n Effect of changes in risk of non-performance of reinsurers | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (12) \n | \n
| \n \n Total changes in the statements of P&L and OCI | \n \n \n 1,467 | \n \n \n \n \n (200) \n | \n \n \n \n \n (37) \n | \n \n \n 1,229 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n \n \n (397) \n | \n \n \n \n \n (158) \n | \n \n \n \n \n (425) \n | \n \n \n \n \n (979) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other movements | \n \n \n \n \n (424) \n | \n \n \n 139 | \n \n \n \n \n (86) \n | \n \n \n \n \n (371) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n \n \n (511) \n | \n \n \n \n \n (34) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (550) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on 31 December 31, 2023 | \n \n \n 14,719 | \n \n \n 1,296 | \n \n \n \n \n (22) \n | \n \n \n 15,993 | \n
| \n \n Closing assets | \n \n \n 16,457 | \n \n \n 349 | \n \n \n \n \n (205) \n | \n \n \n 16,601 | \n
| \n \n Closing liabilities | \n \n \n 1,738 | \n \n \n \n \n (947) \n | \n \n \n \n \n (183) \n | \n \n \n 608 | \n
| \n \n Reinsurance contracts held - Movement schedule by component, no PAA | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 16,184 | \n \n \n 423 | \n \n \n \n \n (7) \n | \n \n \n 16,601 | \n
| \n \n Opening liabilities | \n \n \n 1,024 | \n \n \n \n \n (332) \n | \n \n \n \n \n (85) \n | \n \n \n 608 | \n
| \n \n Net opening balance, on January 1, 2024 | \n \n \n 15,160 | \n \n \n 755 | \n \n \n 78 | \n \n \n 15,993 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust the contractual service margin | \n \n \n \n \n (152) \n | \n \n \n \n \n (11) \n | \n \n \n 163 | \n \n \n - | \n
| \n \n Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts | \n \n \n 462 | \n \n \n 38 | \n \n \n \n \n (46) \n | \n \n \n 454 | \n
| \n \n New reinsurance contracts issued / acquired recognized in the year | \n \n \n \n \n (11) \n | \n \n \n 4 | \n \n \n 8 | \n \n \n 1 | \n
| \n \n Changes that relate to future service | \n \n \n 299 | \n \n \n 31 | \n \n \n 125 | \n \n \n 455 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n CSM recognized for service received | \n \n \n - | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n \n \n (14) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (83) \n | \n \n \n - | \n \n \n \n \n (83) \n | \n
| \n \n Experience adjustment on current service | \n \n \n \n \n (36) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (36) \n | \n
| \n \n Changes that relate to current service | \n \n \n \n \n (36) \n | \n \n \n \n \n (83) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (133) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Experience adjustment on claims component | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Changes that relate to past service | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net income/expenses of reinsurance held | \n \n \n 266 | \n \n \n \n \n (52) \n | \n \n \n 111 | \n \n \n 325 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Reinsurance finance income / (expenses) \n | \n \n \n 31 | \n \n \n 36 | \n \n \n \n \n (12) \n | \n \n \n 55 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums paid, net of received fixed commission | \n \n \n 1,341 | \n \n \n - | \n \n \n - | \n \n \n 1,341 | \n
| \n \n Amounts received | \n \n \n \n \n (3,209) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,209) \n | \n
| \n \n Other | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Cash flows | \n \n \n \n \n (1,869) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,869) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Reinsurance contracts disposed in the year | \n \n \n \n \n (64) \n | \n \n \n - | \n \n \n 34 | \n \n \n \n \n (30) \n | \n
| \n \n Other movements | \n \n \n 207 | \n \n \n 5 | \n \n \n 14 | \n \n \n 226 | \n
| \n \n Other movements | \n \n \n 143 | \n \n \n 5 | \n \n \n 48 | \n \n \n 196 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange difference | \n \n \n 949 | \n \n \n 50 | \n \n \n 12 | \n \n \n 1,011 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 14,681 | \n \n \n 794 | \n \n \n 237 | \n \n \n 15,712 | \n
| \n \n Closing assets | \n \n \n 15,374 | \n \n \n 433 | \n \n \n 208 | \n \n \n 16,015 | \n
| \n \n Closing liabilities | \n \n \n 693 | \n \n \n \n \n (361) \n | \n \n \n \n \n (29) \n | \n \n \n 303 | \n
| \n \n Reinsurance contracts held - Movement schedule by component, no PAA | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 16,233 | \n \n \n 1,010 | \n \n \n \n \n (309) \n | \n \n \n 16,934 | \n
| \n \n Opening liabilities | \n \n \n 371 | \n \n \n 101 | \n \n \n \n \n (202) \n | \n \n \n 270 | \n
| \n \n Net opening balance, on January 1, 2023 | \n \n \n 15,862 | \n \n \n 909 | \n \n \n \n \n (107) \n | \n \n \n 16,664 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust the contractual service margin | \n \n \n \n \n (3) \n | \n \n \n 6 | \n \n \n \n \n (4) \n | \n \n \n - | \n
| \n \n Changes in estimates that relate to losses and reversals of losses on underlying onerous contracts | \n \n \n 477 | \n \n \n 67 | \n \n \n 6 | \n \n \n 550 | \n
| \n \n New reinsurance contracts issued / acquired recognized in the year | \n \n \n \n \n (330) \n | \n \n \n 42 | \n \n \n 271 | \n \n \n \n \n (17) \n | \n
| \n \n Initial recognition of onerous underlying contracts | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n 12 | \n
| \n \n Changes that relate to future service | \n \n \n 144 | \n \n \n 114 | \n \n \n 286 | \n \n \n 544 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n CSM recognized for service received | \n \n \n - | \n \n \n - | \n \n \n \n \n (26) \n | \n \n \n \n \n (26) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n
| \n \n Experience adjustment on current service | \n \n \n \n \n (217) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (217) \n | \n
| \n \n Changes that relate to current service | \n \n \n \n \n (217) \n | \n \n \n \n \n (118) \n | \n \n \n \n \n (26) \n | \n \n \n \n \n (361) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Experience adjustment on claims component | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Changes that relate to past service | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net income/expenses of reinsurance held | \n \n \n \n \n (76) \n | \n \n \n \n \n (3) \n | \n \n \n 260 | \n \n \n 181 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Reinsurance finance income / (expenses) \n | \n \n \n 1,013 | \n \n \n 48 | \n \n \n \n \n (13) \n | \n \n \n 1,048 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums paid, net of received fixed commission | \n \n \n 2,642 | \n \n \n - | \n \n \n - | \n \n \n 2,642 | \n
| \n \n Amounts received | \n \n \n \n \n (3,622) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,622) \n | \n
| \n \n Cash flows | \n \n \n \n \n (979) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (979) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other movements | \n \n \n \n \n (132) \n | \n \n \n \n \n (176) \n | \n \n \n \n \n (63) \n | \n \n \n \n \n (371) \n | \n
| \n \n Other movements | \n \n \n \n \n (132) \n | \n \n \n \n \n (176) \n | \n \n \n \n \n (63) \n | \n \n \n \n \n (371) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange difference | \n \n \n \n \n (528) \n | \n \n \n \n \n (23) \n | \n \n \n 2 | \n \n \n \n \n (550) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 15,160 | \n \n \n 755 | \n \n \n 78 | \n \n \n 15,993 | \n
| \n \n Closing assets | \n \n \n 16,184 | \n \n \n 423 | \n \n \n \n \n (7) \n | \n \n \n 16,601 | \n
| \n \n Closing liabilities | \n \n \n 1,024 | \n \n \n \n \n (332) \n | \n \n \n \n \n (85) \n | \n \n \n 608 | \n
| \n \n 2024 | \n \n \n Reinsurance contracts | \n
| \n \n Present value of cash inflows | \n \n \n 54 | \n
| \n \n Present value of cash outflows | \n \n \n \n \n (65) \n | \n
| \n \n Risk adjustment for non-financial risk | \n \n \n 4 | \n
| \n \n Contractual service margin | \n \n \n 8 | \n
| \n \n Income recognized on initial recognition | \n \n \n 1 | \n
| \n \n 2023 | \n \n | \n
| \n \n Present value of cash inflows | \n \n \n 201 | \n
| \n \n Present value of cash outflows | \n \n \n \n \n (531) \n | \n
| \n \n Risk adjustment for non-financial risk | \n \n \n 42 | \n
| \n \n Contractual service margin | \n \n \n 271 | \n
| \n \n Income recognized on initial recognition | \n \n \n \n \n (17) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Maturity analysis CSM reinsurance contracts held, no PAA | \n \n \n Discounted CSM | \n \n \n Discounted CSM | \n
| \n \n < 1yr | \n \n \n - | \n \n \n 8 | \n
| \n \n 1 < 2 yrs | \n \n \n 1 | \n \n \n 7 | \n
| \n \n 2 < 3 yrs | \n \n \n 4 | \n \n \n 6 | \n
| \n \n 3 < 4 yrs | \n \n \n 6 | \n \n \n 6 | \n
| \n \n 4 < 5 yrs | \n \n \n 7 | \n \n \n 5 | \n
| \n \n 5 < 10 yrs | \n \n \n 49 | \n \n \n 18 | \n
| \n \n 10 - 20 yrs | \n \n \n 106 | \n \n \n 17 | \n
| \n \n > 20 yrs | \n \n \n 63 | \n \n \n 12 | \n
| \n \n On December 31 | \n \n \n 237 | \n \n \n 78 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,233 | \n \n \n - | \n \n \n 2,233 | \n
| \n \n Loans | \n \n \n - | \n \n \n 428 | \n \n \n - | \n \n \n 428 | \n
| \n \n Other | \n \n \n - | \n \n \n 60 | \n \n \n - | \n \n \n 60 | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,720 | \n \n \n - | \n \n \n 2,720 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,166 | \n \n \n - | \n \n \n 2,166 | \n
| \n \n Loans | \n \n \n - | \n \n \n 433 | \n \n \n - | \n \n \n 433 | \n
| \n \n Other | \n \n \n - | \n \n \n 139 | \n \n \n - | \n \n \n 139 | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,738 | \n \n \n - | \n \n \n 2,738 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,479 | \n \n \n - | \n \n \n 2,479 | \n
| \n \n Loans | \n \n \n - | \n \n \n 425 | \n \n \n - | \n \n \n 425 | \n
| \n \n Other | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (6) \n | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,898 | \n \n \n - | \n \n \n 2,898 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Derivatives to which hedge accounting was not applied | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 197 | \n \n \n 11 | \n \n \n 132 | \n \n \n 340 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 301 | \n \n \n - | \n \n \n 301 | \n
| \n \n On December 31 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 231 | \n \n \n 54 | \n \n \n 137 | \n \n \n 422 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 315 | \n \n \n - | \n \n \n 315 | \n
| \n \n On December 31 | \n \n \n 231 | \n \n \n 369 | \n \n \n 137 | \n \n \n 737 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 182 | \n \n \n 48 | \n \n \n 128 | \n \n \n 358 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 217 | \n \n \n - | \n \n \n 217 | \n
| \n \n On December 31 | \n \n \n 182 | \n \n \n 265 | \n \n \n 128 | \n \n \n 575 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Debt securities and money market instruments | \n \n \n 484 | \n \n \n 457 | \n \n \n 405 | \n
| \n \n Other | \n \n \n 121 | \n \n \n 142 | \n \n \n 3 | \n
| \n \n On December 31 | \n \n \n 605 | \n \n \n 599 | \n \n \n 409 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 65 | \n \n \n 89 | \n \n \n 49 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n 13 | \n \n \n - | \n \n \n - | \n
| \n \n Non-derivative assets - PH designated | \n \n \n 108 | \n \n \n - | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 186 | \n \n \n 89 | \n \n \n 49 | \n
| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Interest charges | \n \n \n 11.1 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n \n Other financing income | \n \n | \n\n \n - | \n \n \n - | \n \n \n 5 | \n
| \n \n On December 31 | \n \n | \n\n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (178) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Subordinated loans | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n \n \n \n \n (119) \n | \n
| \n \n Trust pass-through securities | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n Borrowings | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (54) \n | \n
| \n \n On December 31 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,233 | \n \n \n - | \n \n \n 2,233 | \n
| \n \n Loans | \n \n \n - | \n \n \n 428 | \n \n \n - | \n \n \n 428 | \n
| \n \n Other | \n \n \n - | \n \n \n 60 | \n \n \n - | \n \n \n 60 | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,720 | \n \n \n - | \n \n \n 2,720 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,166 | \n \n \n - | \n \n \n 2,166 | \n
| \n \n Loans | \n \n \n - | \n \n \n 433 | \n \n \n - | \n \n \n 433 | \n
| \n \n Other | \n \n \n - | \n \n \n 139 | \n \n \n - | \n \n \n 139 | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,738 | \n \n \n - | \n \n \n 2,738 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Debt securities and money market instruments | \n \n \n - | \n \n \n 2,479 | \n \n \n - | \n \n \n 2,479 | \n
| \n \n Loans | \n \n \n - | \n \n \n 425 | \n \n \n - | \n \n \n 425 | \n
| \n \n Other | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (6) \n | \n
| \n \n At December 31 | \n \n \n - | \n \n \n 2,898 | \n \n \n - | \n \n \n 2,898 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Derivatives to which hedge accounting was not applied | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 197 | \n \n \n 11 | \n \n \n 132 | \n \n \n 340 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 301 | \n \n \n - | \n \n \n 301 | \n
| \n \n On December 31 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 231 | \n \n \n 54 | \n \n \n 137 | \n \n \n 422 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 315 | \n \n \n - | \n \n \n 315 | \n
| \n \n On December 31 | \n \n \n 231 | \n \n \n 369 | \n \n \n 137 | \n \n \n 737 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 182 | \n \n \n 48 | \n \n \n 128 | \n \n \n 358 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 217 | \n \n \n - | \n \n \n 217 | \n
| \n \n On December 31 | \n \n \n 182 | \n \n \n 265 | \n \n \n 128 | \n \n \n 575 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Debt securities and money market instruments | \n \n \n 484 | \n \n \n 457 | \n \n \n 405 | \n
| \n \n Other | \n \n \n 121 | \n \n \n 142 | \n \n \n 3 | \n
| \n \n On December 31 | \n \n \n 605 | \n \n \n 599 | \n \n \n 409 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 65 | \n \n \n 89 | \n \n \n 49 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n 13 | \n \n \n - | \n \n \n - | \n
| \n \n Non-derivative assets - PH designated | \n \n \n 108 | \n \n \n - | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 186 | \n \n \n 89 | \n \n \n 49 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2024 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Dividend income | \n \n \n 801 | \n \n \n 12 | \n \n \n 504 | \n \n \n 1,317 | \n
| \n \n Rental income | \n \n \n 15 | \n \n \n \n \n (2) \n | \n \n \n 10 | \n \n \n 23 | \n
| \n \n On December 31 | \n \n \n 816 | \n \n \n 10 | \n \n \n 514 | \n \n \n 1,340 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2023 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Dividend income | \n \n \n 828 | \n \n \n 12 | \n \n \n 417 | \n \n \n 1,257 | \n
| \n \n Rental income | \n \n \n 17 | \n \n \n \n \n (2) \n | \n \n \n 11 | \n \n \n 26 | \n
| \n \n On December 31 | \n \n \n 845 | \n \n \n 11 | \n \n \n 427 | \n \n \n 1,283 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2022 | \n |
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n \n Total | \n
| \n \n Dividend income | \n \n \n 680 | \n \n \n 28 | \n \n \n 407 | \n \n \n 1,115 | \n
| \n \n Rental income | \n \n \n 20 | \n \n \n 4 | \n \n \n 14 | \n \n \n 38 | \n
| \n \n On December 31 | \n \n \n 701 | \n \n \n 31 | \n \n \n 421 | \n \n \n 1,153 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Dividend income | \n \n \n 724 | \n \n \n 547 | \n \n \n 410 | \n
| \n \n Rental income | \n \n \n 4 | \n \n \n 3 | \n \n \n 1 | \n
| \n \n On December 31 | \n \n \n 729 | \n \n \n 550 | \n \n \n 411 | \n
Aegon declared interim and final dividends on common shares for the years 2022 through 2024, in the amounts set forth in\u00a0the following table. As previously announced, Aegon has moved to a cash only dividend as\u00a0from the 2022 final dividend.\u00a0The\u00a02024 interim dividend amounted to EUR 0.16 per common share and EUR 0.004 per common share B, which has financial rights attached to it of 1/40th of a common share. The interim dividend was paid on September 26, 2024. At the General Meeting of Shareholders currently scheduled for June 12, 2025, the Board of Directors will, in line with its earlier announcement and barring unforeseen circumstances, propose a final dividend of EUR 0.19 per common share, and EUR 0.00475 per common share B. The final dividend for 2024 brought the total dividend for 2024 to EUR 0.35 per common share and EUR 0.00875 per common share B.
| \n | \n\n | \n\n \n EUR per common share | \n ||
| \n \n Year | \n \n | \n\n \n Interim | \n \n \n Final | \n \n \n Total | \n
| \n \n 2022 | \n \n | \n\n \n 0.11 | \n \n \n 0.12 | \n \n \n 0.23 | \n
| \n \n 2023 | \n \n | \n\n \n 0.14 | \n \n \n 0.16 | \n \n \n 0.30 | \n
| \n \n 2024 | \n \n | \n\n \n 0.16 | \n \n \n 0.19 1 | \n \n \n 0.35 | \n
Aegon Ltd. is subject to legal restrictions with regard to the number of dividends it can pay to its shareholders.\u00a0\u00a0Aegon shall only declare or pay a dividend or make a distribution from contributed surplus in accordance with Bermuda law. Among other things this means that Aegon shall not declare or pay a dividend or make a distribution from contributed surplus in the event that there are reasonable grounds for believing that (i) the company is, or would after the payment be, unable to pay its liabilities as they become due; or (ii) the realizable value of the company\u2019s assets would thereby be less than its liabilities.
In accordance with the Dutch Non-residential companies act (\"Wet op de formeel buitenlandse vennootschappen\") the\u00a0members of the Board of Directors will need to satisfy themselves that after distributions to shareholders, repurchase of\u00a0shares and reduction of the issued capital with repayment of shares Aegon Ltd. remains in the position to proceed with\u00a0the\u00a0payment of its due debts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5663m3767p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Impairment losses on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (103) \n | \n \n \n \n \n (77) \n | \n \n \n \n \n (121) \n | \n
| \n \n Loans | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \n \n \n 10 | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Impairment reversals on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n 3 | \n \n \n 37 | \n \n \n 26 | \n
| \n \n Impairment (losses) and reversals on non-financial assets and receivables | \n \n \n \n \n (3) \n | \n \n \n \n \n (31) \n | \n \n \n \n \n (17) \n | \n
| \n \n On December 31 | \n \n \n \n \n (190) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (95) \n | \n
Impairment losses in 2024 increased by EUR 104 million to EUR 190 million mainly due to expected credit loss (ECL) balance increases in Aegon US for bonds and mortgages following more adverse economic scenario output and real estate occupancy rates.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Impairment losses on financial assets, excluding receivables | \n \n | \n\n | \n\n | \n
| \n \n Debt securities and money market investments | \n \n \n \n \n (40) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (13) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Impairment losses and reversals on non-financial assets and receivables | \n \n \n \n \n (7) \n | \n \n \n \n \n (29) \n | \n \n \n \n \n (30) \n | \n
| \n \n On December 31 | \n \n \n \n \n (47) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (43) \n | \n
The economic assumptions used in all the calculations are based on observable market data and projections of future trends. All the cash-generating units tested showed that the recoverable amount was higher than their carrying values, including goodwill. A reasonably possible change in any key assumption is not expected to cause the carrying value of the cash-generating units to exceed its recoverable amount.
The goodwill balance has been allocated across the cash-generating units which that are expected to benefit from the synergies inherent in the goodwill. Goodwill is tested for impairment both annually and when there are specific indicators of a potential impairment. The recoverable amount is the higher of the value in use and fair value less costs of disposal for a cash-generating unit. The operating assumptions used in all the calculations are best estimate assumptions and based on historical data where available.
A summary of the cash-generating units to which the goodwill is allocated is as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Americas | \n \n \n 215 | \n \n \n 201 | \n
| \n \n United Kingdom | \n \n \n 81 | \n \n \n 56 | \n
| \n \n Asset Management | \n \n \n 49 | \n \n \n 34 | \n
| \n \n On December 31 | \n \n \n 345 | \n \n \n 291 | \n
Within Americas, Transamerica's goodwill is allocated to groups of cash-generating units, including variable annuities, fixed annuities, and the retirement plans and single premium group annuities (SPGA) cash-generating units. Transamerica uses the value in use concept to determine the recoverable amount and it is calculated annually in the fourth quarter. Transamerica reviewed the recoverable amount of the retirement plans and SPGA cash-generating units under the Economic Available Capital (EAC) approach. This approach measures the difference between the market value of assets assigned to a block of business and the market value of liabilities. The EAC is reflective of market conditions where a pre-tax benchmark discount rate ranged from approximately 4.56% to 3.32% from the one-month to 30-year tenors.\u00a0
Transamerica reviewed the recoverable amount of the annuities cash-generating units under the Contractual Service Margin (CSM) approach. The CSM is a component of the asset or liability for the group of insurance contracts that represents the unearned profit the entity will recognize as it provides services in the future. Based on the value in use tests, Transamerica\u2019s goodwill for the group of annuities cash-generating units (2024: EUR 137 million; 2023: EUR 129 million) remains unchanged from the prior period except for the impact of currency translation adjustments. Transamerica\u2019s goodwill for the retirement plans and SPGA cash-generating units\u00a0 (2024: EUR 77 million; 2023: EUR 72 million) remains unchanged from the prior period except for the impact of currency translation adjustments.
In the United Kingdom, the cash-generating unit for the Cofunds goodwill impairment assessment is Aegon UK. For the new Nationwide (Origen) goodwill the cash-generating unit is the Aegon Investment Holdings Limited Group.\u00a0
For the Cofunds goodwill, the value in use of Scottish Equitable plc is the most material part of the Aegon UK value in use calculation. The value in use of SE plc was determined using SE plc\u2019s Solvency II own funds value with adjustments for contract boundaries, and risk margin.\u00a0 An allowance has also been made for the present value of profits from expected new business in the next four years.\u00a0 A key variable is the present value of profits from expected new business in the next four years, which, if this does not arise would reduce the value in use by EUR 108 million, however there would still be over EUR 1,450 million headroom.
For Nationwide (Origen) goodwill, this relies on the underlying value in use calculation for Aegon Investment Holdings Limited Group\u2019s subsidiary companies (principally Origen Financial Services limited (OFSL), Aegon Investment Solutions Limited (AISL) and Aegon Investments Limited(AIL)). The value in use calculation uses a standard model.\u00a0 The headroom at year end was EUR\u00a0193\u00a0million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1575m1469p": { "value": "\n| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Interest charges | \n \n \n 11.1 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n \n Other financing income | \n \n | \n\n \n - | \n \n \n - | \n \n \n 5 | \n
| \n \n On December 31 | \n \n | \n\n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (178) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Subordinated loans | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n \n \n \n \n (119) \n | \n
| \n \n Trust pass-through securities | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n Borrowings | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (54) \n | \n
| \n \n On December 31 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Interest charges | \n \n \n 11.1 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n \n Other financing income | \n \n | \n\n \n - | \n \n \n - | \n \n \n 5 | \n
| \n \n On December 31 | \n \n | \n\n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (178) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Subordinated loans | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n \n \n \n \n (119) \n | \n
| \n \n Trust pass-through securities | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n Borrowings | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (54) \n | \n
| \n \n On December 31 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Subordinated loans | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n \n \n \n \n (119) \n | \n
| \n \n Trust pass-through securities | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n Borrowings | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (54) \n | \n
| \n \n On December 31 | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Fee from asset management and insurance distribution | \n \n \n 2,097 | \n \n \n 1,967 | \n \n \n 2,079 | \n
| \n \n Sales commission | \n \n \n 55 | \n \n \n 21 | \n \n \n 23 | \n
| \n \n Other fee and commission income | \n \n \n 226 | \n \n \n 174 | \n \n \n 171 | \n
| \n \n On December 31 | \n \n \n 2,378 | \n \n \n 2,163 | \n \n \n 2,272 | \n
| \n \n Included in fees and commission income: | \n \n | \n\n | \n\n | \n
| \n \n Fees on trust and fiduciary activities | \n \n \n 253 | \n \n \n 220 | \n \n \n 248 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Policyholder claims and benefits | \n \n \n 6,520 | \n \n \n - | \n \n \n 6,965 | \n \n \n - | \n \n \n 7,736 | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n 1,111 | \n \n \n - | \n \n \n 1,081 | \n \n \n - | \n \n \n 1,250 | \n \n \n - | \n
| \n \n Commissions | \n \n \n 1,449 | \n \n \n 937 | \n \n \n 1,403 | \n \n \n 1,069 | \n \n \n 1,214 | \n \n \n 1,011 | \n
| \n \n Handling and clearing fees | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 32 | \n \n \n 1 | \n \n \n 31 | \n
| \n \n Right of use assets \u2013 interest expense | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \n
| \n \n Employee expenses | \n \n \n 620 | \n \n \n 1,198 | \n \n \n 604 | \n \n \n 1,107 | \n \n \n 637 | \n \n \n 1,059 | \n
| \n \n Administration expenses | \n \n \n 500 | \n \n \n 785 | \n \n \n 551 | \n \n \n 780 | \n \n \n 594 | \n \n \n 669 | \n
| \n \n Deferred transaction expenses | \n \n \n - | \n \n \n \n \n (35) \n | \n \n \n - | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n
| \n \n Amortization of deferred expenses | \n \n \n - | \n \n \n 22 | \n \n \n - | \n \n \n 21 | \n \n \n - | \n \n \n 28 | \n
| \n \n Amortization of other intangibles | \n \n \n - | \n \n \n 17 | \n \n \n - | \n \n \n 13 | \n \n \n - | \n \n \n 9 | \n
| \n \n Total | \n \n \n 10,200 | \n \n \n 2,961 | \n \n \n 10,604 | \n \n \n 3,000 | \n \n \n 11,433 | \n \n \n 2,786 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Amounts attributed to insurance acquisition cash flows (see cash flow in note 29) \n | \n \n \n \n \n (983) \n | \n \n \n - | \n \n \n \n \n (956) \n | \n \n \n - | \n \n \n \n \n (903) \n | \n \n \n - | \n
| \n \n \n \n Amortization of insurance acquisition cash flows (see note 6/7) \n | \n \n \n 553 | \n \n \n - | \n \n \n 558 | \n \n \n - | \n \n \n 545 | \n \n \n - | \n
| \n \n Amortization of insurance acquisition cash flows PAA | \n \n \n 20 | \n \n \n - | \n \n \n 19 | \n \n \n - | \n \n \n 22 | \n \n \n - | \n
| \n \n Total other operating expenses | \n \n \n 9,790 | \n \n \n 2,961 | \n \n \n 10,226 | \n \n \n 3,000 | \n \n \n 11,097 | \n \n \n 2,786 | \n
| \n \n Employee expenses | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Salaries | \n \n \n 1,205 | \n \n \n 1,131 | \n \n \n 1,138 | \n
| \n \n Post-employment benefit costs | \n \n \n 127 | \n \n \n 125 | \n \n \n 117 | \n
| \n \n Social security charges | \n \n \n 118 | \n \n \n 107 | \n \n \n 101 | \n
| \n \n Other personnel costs | \n \n \n 310 | \n \n \n 294 | \n \n \n 292 | \n
| \n \n Shares | \n \n \n 58 | \n \n \n 54 | \n \n \n 48 | \n
| \n \n Total | \n \n \n 1,818 | \n \n \n 1,711 | \n \n \n 1,696 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Included in employee expenses: | \n \n | \n\n | \n\n | \n
| \n \n Defined contribution expenses | \n \n \n 61 | \n \n \n 57 | \n \n \n 48 | \n
Other operating expenses that arise directly from or can be allocated to the fulfillment of insurance contracts or investment contracts with discretionary participating features, are considered insurance service expenses and recognized in the income statement as services under the contract are provided (see note\u00a07 Insurance service expenses). Other operating expenses that do not meet the definition of fulfillment cash flows, including unexpected amounts of waste labor and other resources (e.g. start-up costs of new businesses) are expensed when incurred.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Other income | \n \n \n 153 | \n \n \n 35 | \n \n \n 341 | \n
| \n \n Other charges | \n \n \n \n \n (8) \n | \n \n \n \n \n (92) \n | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 145 | \n \n \n \n \n (57) \n | \n \n \n 341 | \n
Other income in 2024 mainly reflects a gain on the completion of the part VII transfer of the legal ownership of the UK individual protection book to Royal London (EUR 46 million) and a gain on the disposal of a portfolio of insurance contracts and\u00a0related reinsurance contracts in the US (EUR 57 million).
The other charges in 2023 mainly relate to the book loss of the divestment of Aegon's businesses in Poland and Romania to\u00a0Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG), amounting to EUR 78 million.
Other income in 2022 includes the book gain on the divestment of Aegon Hungary and Aegon Turkey to Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) amounting to EUR 237 million, and the book gain on the divestment of Aegon's 50% stake in the Spanish insurance joint venture with LIberbank to Unicaja Banco amounting to EUR 91 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f10159m1046p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Policyholder claims and benefits | \n \n \n 6,520 | \n \n \n - | \n \n \n 6,965 | \n \n \n - | \n \n \n 7,736 | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n 1,111 | \n \n \n - | \n \n \n 1,081 | \n \n \n - | \n \n \n 1,250 | \n \n \n - | \n
| \n \n Commissions | \n \n \n 1,449 | \n \n \n 937 | \n \n \n 1,403 | \n \n \n 1,069 | \n \n \n 1,214 | \n \n \n 1,011 | \n
| \n \n Handling and clearing fees | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 32 | \n \n \n 1 | \n \n \n 31 | \n
| \n \n Right of use assets \u2013 interest expense | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \n
| \n \n Employee expenses | \n \n \n 620 | \n \n \n 1,198 | \n \n \n 604 | \n \n \n 1,107 | \n \n \n 637 | \n \n \n 1,059 | \n
| \n \n Administration expenses | \n \n \n 500 | \n \n \n 785 | \n \n \n 551 | \n \n \n 780 | \n \n \n 594 | \n \n \n 669 | \n
| \n \n Deferred transaction expenses | \n \n \n - | \n \n \n \n \n (35) \n | \n \n \n - | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n
| \n \n Amortization of deferred expenses | \n \n \n - | \n \n \n 22 | \n \n \n - | \n \n \n 21 | \n \n \n - | \n \n \n 28 | \n
| \n \n Amortization of other intangibles | \n \n \n - | \n \n \n 17 | \n \n \n - | \n \n \n 13 | \n \n \n - | \n \n \n 9 | \n
| \n \n Total | \n \n \n 10,200 | \n \n \n 2,961 | \n \n \n 10,604 | \n \n \n 3,000 | \n \n \n 11,433 | \n \n \n 2,786 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Amounts attributed to insurance acquisition cash flows (see cash flow in note 29) \n | \n \n \n \n \n (983) \n | \n \n \n - | \n \n \n \n \n (956) \n | \n \n \n - | \n \n \n \n \n (903) \n | \n \n \n - | \n
| \n \n \n \n Amortization of insurance acquisition cash flows (see note 6/7) \n | \n \n \n 553 | \n \n \n - | \n \n \n 558 | \n \n \n - | \n \n \n 545 | \n \n \n - | \n
| \n \n Amortization of insurance acquisition cash flows PAA | \n \n \n 20 | \n \n \n - | \n \n \n 19 | \n \n \n - | \n \n \n 22 | \n \n \n - | \n
| \n \n Total other operating expenses | \n \n \n 9,790 | \n \n \n 2,961 | \n \n \n 10,226 | \n \n \n 3,000 | \n \n \n 11,097 | \n \n \n 2,786 | \n
| \n \n Employee expenses | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Salaries | \n \n \n 1,205 | \n \n \n 1,131 | \n \n \n 1,138 | \n
| \n \n Post-employment benefit costs | \n \n \n 127 | \n \n \n 125 | \n \n \n 117 | \n
| \n \n Social security charges | \n \n \n 118 | \n \n \n 107 | \n \n \n 101 | \n
| \n \n Other personnel costs | \n \n \n 310 | \n \n \n 294 | \n \n \n 292 | \n
| \n \n Shares | \n \n \n 58 | \n \n \n 54 | \n \n \n 48 | \n
| \n \n Total | \n \n \n 1,818 | \n \n \n 1,711 | \n \n \n 1,696 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Included in employee expenses: | \n \n | \n\n | \n\n | \n
| \n \n Defined contribution expenses | \n \n \n 61 | \n \n \n 57 | \n \n \n 48 | \n
Other operating expenses that arise directly from or can be allocated to the fulfillment of insurance contracts or investment contracts with discretionary participating features, are considered insurance service expenses and recognized in the income statement as services under the contract are provided (see note\u00a07 Insurance service expenses). Other operating expenses that do not meet the definition of fulfillment cash flows, including unexpected amounts of waste labor and other resources (e.g. start-up costs of new businesses) are expensed when incurred.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1075m1053p": { "value": "| \n \n Employee expenses | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Salaries | \n \n \n 1,205 | \n \n \n 1,131 | \n \n \n 1,138 | \n
| \n \n Post-employment benefit costs | \n \n \n 127 | \n \n \n 125 | \n \n \n 117 | \n
| \n \n Social security charges | \n \n \n 118 | \n \n \n 107 | \n \n \n 101 | \n
| \n \n Other personnel costs | \n \n \n 310 | \n \n \n 294 | \n \n \n 292 | \n
| \n \n Shares | \n \n \n 58 | \n \n \n 54 | \n \n \n 48 | \n
| \n \n Total | \n \n \n 1,818 | \n \n \n 1,711 | \n \n \n 1,696 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Included in employee expenses: | \n \n | \n\n | \n\n | \n
| \n \n Defined contribution expenses | \n \n \n 61 | \n \n \n 57 | \n \n \n 48 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Retirement benefit plans | \n \n \n 269 | \n \n \n 368 | \n
| \n \n Other post-employment benefit plans | \n \n \n 189 | \n \n \n 178 | \n
| \n \n Total defined benefit plans | \n \n \n 457 | \n \n \n 546 | \n
| \n | \n\n | \n\n | \n
| \n \n Retirement benefit plans in surplus | \n \n \n 110 | \n \n \n 103 | \n
| \n \n Reimbursement rights | \n \n \n 9 | \n \n \n 20 | \n
| \n \n Total defined benefit assets | \n \n \n 119 | \n \n \n 123 | \n
| \n | \n\n | \n\n | \n
| \n \n Retirement benefit plans in deficit | \n \n \n 388 | \n \n \n 491 | \n
| \n \n Other post-employment benefit plans in deficit | \n \n \n 189 | \n \n \n 178 | \n
| \n \n Total defined benefit liabilities | \n \n \n 576 | \n \n \n 669 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n \n Movements during the year in defined benefit plans | \n \n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n \n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n
| \n \n On January 1 | \n \n \n 368 | \n \n \n 178 | \n \n \n 546 | \n \n \n 225 | \n \n \n 184 | \n \n \n 409 | \n
| \n \n Defined benefit expenses | \n \n \n 42 | \n \n \n 15 | \n \n \n 57 | \n \n \n 113 | \n \n \n 19 | \n \n \n 132 | \n
| \n \n Remeasurements of defined benefit plans | \n \n \n 19 | \n \n \n \n \n (5) \n | \n \n \n 15 | \n \n \n 167 | \n \n \n \n \n (7) \n | \n \n \n 160 | \n
| \n \n Contributions paid | \n \n \n \n \n (148) \n | \n \n \n - | \n \n \n \n \n (148) \n | \n \n \n \n \n (83) \n | \n \n \n - | \n \n \n \n \n (83) \n | \n
| \n \n Benefits paid | \n \n \n \n \n (28) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (40) \n | \n \n \n \n \n (39) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (51) \n | \n
| \n \n Net exchange differences | \n \n \n 16 | \n \n \n 12 | \n \n \n 27 | \n \n \n \n \n (15) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (21) \n | \n
| \n \n On December 31 | \n \n \n 269 | \n \n \n 189 | \n \n \n 457 | \n \n \n 368 | \n \n \n 178 | \n \n \n 546 | \n
The amounts recognized in the statement of financial position are determined as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n | \n\n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n \n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n
| \n \n Present value of wholly or partly funded obligations | \n \n \n 3,140 | \n \n \n - | \n \n \n 3,140 | \n \n \n 3,165 | \n \n \n - | \n \n \n 3,165 | \n
| \n \n Fair value of plan assets | \n \n \n \n \n (3,123) \n | \n \n \n - | \n \n \n \n \n (3,123) \n | \n \n \n \n \n (3,051) \n | \n \n \n - | \n \n \n \n \n (3,051) \n | \n
| \n \n Fair value of reimbursement rights | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n \n \n (20) \n | \n \n \n 2 | \n \n \n \n \n (19) \n | \n
| \n | \n\n \n 7 | \n \n \n - | \n \n \n 7 | \n \n \n 93 | \n \n \n 2 | \n \n \n 95 | \n
| \n \n Present value of wholly unfunded obligations | \n \n \n 262 | \n \n \n 189 | \n \n \n 450 | \n \n \n 275 | \n \n \n 176 | \n \n \n 451 | \n
| \n \n On December 31 | \n \n \n 269 | \n \n \n 189 | \n \n \n 457 | \n \n \n 368 | \n \n \n 178 | \n \n \n 546 | \n
The fair value of Aegon\u2019s 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 2024 and 2023.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n \n Defined benefit expenses | \n \n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n \n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n
| \n \n Current year service cost | \n \n \n 32 | \n \n \n 7 | \n \n \n 39 | \n \n \n 38 | \n \n \n 6 | \n \n \n 44 | \n
| \n \n \n \n Net interest on the net defined benefit liability (asset) \n | \n \n \n 9 | \n \n \n 9 | \n \n \n 18 | \n \n \n 10 | \n \n \n 9 | \n \n \n 19 | \n
| \n \n Past service cost | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n 4 | \n \n \n 69 | \n
| \n \n Total defined benefit expenses | \n \n \n 42 | \n \n \n 15 | \n \n \n 57 | \n \n \n 113 | \n \n \n 19 | \n \n \n 132 | \n
Defined benefit expenses are included in Post-employment benefit costs in note\u00a013 Other operating expenses.
| \n \n Movements during the year of the present value of the defined benefit obligations | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 3,616 | \n \n \n 3,491 | \n
| \n \n Current year service cost | \n \n \n 39 | \n \n \n 46 | \n
| \n \n Interest expenses | \n \n \n 173 | \n \n \n 172 | \n
| \n \n Remeasurements of the defined benefit obligations: | \n \n | \n\n | \n
| \n \n - Actuarial gains and losses arising from changes in demographic assumptions | \n \n \n 6 | \n \n \n 53 | \n
| \n \n - Actuarial gains and losses arising from changes in financial assumptions | \n \n \n \n \n (217) \n | \n \n \n 61 | \n
| \n \n Past service cost | \n \n \n - | \n \n \n 109 | \n
| \n \n Benefits paid | \n \n \n \n \n (237) \n | \n \n \n \n \n (252) \n | \n
| \n \n Net exchange differences | \n \n \n 208 | \n \n \n \n \n (65) \n | \n
| \n \n Other | \n \n \n 2 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 3,590 | \n \n \n 3,616 | \n
| \n \n Movements during the year in plan assets for retirement benefit plans | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 3,051 | \n \n \n 3,083 | \n
| \n \n \n \n Interest income (based on discount rate) \n | \n \n \n 152 | \n \n \n 153 | \n
| \n \n \n \n Remeasurements of the net defined liability (asset) \n | \n \n \n \n \n (208) \n | \n \n \n \n \n (21) \n | \n
| \n \n Contributions by employer | \n \n \n 148 | \n \n \n 83 | \n
| \n \n Benefits paid | \n \n \n \n \n (200) \n | \n \n \n \n \n (203) \n | \n
| \n \n Net exchange differences | \n \n \n 180 | \n \n \n \n \n (44) \n | \n
| \n \n On December 31 | \n \n \n 3,123 | \n \n \n 3,051 | \n
| \n | \n\n \n 2024 | \n \n | \n\n \n 2023 | \n \n | \n||||
| \n \n Breakdown of plan assets for retirement benefit plans | \n \n \n Quoted | \n \n \n Unquoted | \n \n \n Total | \n \n \n in % of total plan assets | \n \n \n Quoted | \n \n \n Unquoted | \n \n \n Total | \n \n \n in % of total plan assets | \n
| \n \n Debt instrument | \n \n \n 594 | \n \n \n 275 | \n \n \n 869 | \n \n \n 28% | \n \n \n 424 | \n \n \n 177 | \n \n \n 601 | \n \n \n 20% | \n
| \n \n Derivatives | \n \n \n - | \n \n \n \n \n (183) \n | \n \n \n \n \n (183) \n | \n \n \n -6% | \n \n \n - | \n \n \n \n \n (143) \n | \n \n \n \n \n (143) \n | \n \n \n -5% | \n
| \n \n Investment funds | \n \n \n - | \n \n \n 2,027 | \n \n \n 2,027 | \n \n \n 65% | \n \n \n - | \n \n \n 2,142 | \n \n \n 2,142 | \n \n \n 70% | \n
| \n \n Structured securities | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0% | \n \n \n - | \n \n \n 200 | \n \n \n 200 | \n \n \n 7% | \n
| \n \n Other | \n \n \n - | \n \n \n 410 | \n \n \n 410 | \n \n \n 13% | \n \n \n - | \n \n \n 252 | \n \n \n 252 | \n \n \n 8% | \n
| \n \n On December 31 | \n \n \n 594 | \n \n \n 2,529 | \n \n \n 3,123 | \n \n \n 100% | \n \n \n 424 | \n \n \n 2,627 | \n \n \n 3,051 | \n \n \n 100% | \n
| \n \n Movements during the year of the fair value of the reimbursement rights | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 20 | \n \n \n - | \n
| \n \n Current year service cost | \n \n \n - | \n \n \n 2 | \n
| \n \n Interest expenses | \n \n \n 3 | \n \n \n - | \n
| \n \n Remeasurements of the defined benefit obligations: | \n \n | \n\n | \n
| \n \n - Actuarial gains and losses arising from changes in financial assumptions | \n \n \n \n \n (18) \n | \n \n \n \n \n (25) \n | \n
| \n \n Past service cost | \n \n \n - | \n \n \n 40 | \n
| \n \n Benefits paid | \n \n \n 4 | \n \n \n 2 | \n
| \n \n Other | \n \n \n 2 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 9 | \n \n \n 20 | \n
Defined benefit plans are mainly operated by Transamerica, Aegon UK and Aegon Employees Netherlands. The following sections contain a general description of the plans in each of these subsidiaries and a summary of the principal actuarial assumptions applied in determining the value of defined benefit plans. Businesses included in all other operating segments mostly operate defined contribution plans. Please refer to note\u00a013 Other operating expenses for a complete overview of employee expenses including the total defined contribution expenses.
\nTransamerica has defined benefit plans covering substantially all its employees that are qualified under the Internal Revenue Service Code, including all requirements for minimum funding levels. The defined benefit plans are governed by the Board of Directors of Transamerica Corporation. The Board of Directors 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\u2019s 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 have a deficit of EUR 126 million on December 31, 2024 (2023: EUR 216 million deficit).
Investment strategies are established based on asset and liability studies by actuaries which are updated as they consider appropriate. These studies, along with the investment policy, assist to develop the appropriate investment criteria for the plan, including asset allocation mix, return objectives, investment risk and time horizon, benchmarks and performance standards, and restrictions and prohibitions. The overall goal is to maximize total investment returns to provide sufficient funding for the present and anticipated future benefit obligations within the constraints of a prudent level of portfolio risk and diversification. Aegon believes that the asset allocation is an important factor in determining the long-term performance of the plan. The plan uses multiple asset classes as well as sub-classes to meet the asset allocation and other requirements of the investment policy, which minimizes investment risk. From time to time the actual asset allocation may deviate from the desired asset allocation ranges due to different market performance among the various asset categories. If it is determined that rebalancing is required, future additions and withdrawals will be used to bring the allocation to the desired level.
Transamerica maintains minimum required funding levels as set forth by the Internal Revenue Code. If contributions are required, the funding would be provided from the Company\u2019s general account assets. Pension plan contributions were not required for Transamerica in 2024 or 2023. However, Transamerica Corporation made a pension plan contribution of EUR\u00a048\u00a0million in March 2024 and an additional EUR 97 million in September, 2024 that was over and above the minimum required funding levels as set forth by the Internal Revenue Code. In 2023, Transamerica Corporation made a pension plan contribution of EUR 45 million.
Transamerica\u00a0also sponsors supplemental retirement plans to provide senior management with benefits in excess of normal retirement benefits. The plans are unfunded and are not qualified under the Internal Revenue Code. The supplemental retirement plans are governed by Transamerica Corporation, and overseen by the Compensation Committee of the Board of Directors of Transamerica Corporation. Transamerica Corporation, or the Compensation Committee of the Board of Directors has the\u00a0full power and discretion to apply all the plan\u2019s provisions, including such responsibilities as, but not limited to, interpret the plan provisions, to make factual determinations under the plan, to determine plan benefits, and to comply with any statutory reporting and disclosure requirements. The benefits are based on years of service and the employee\u2019s eligible annual compensation. The plans provide benefits based on a traditional final average formula or a cash balance formula (which\u00a0defines the accrued benefit in terms of a stated account balance), depending on the age and service of the plan participant. The company funds the benefit payments of the supplemental retirement plans from its general account assets. The unfunded amount related to these plans, for which a liability has been recorded, was EUR 164 million (2023:\u00a0EUR\u00a0174\u00a0million unfunded).
Transamerica\u00a0 provides health care benefits to retired employees through continuation of coverage primarily in self-funded plans, and partly in fully insured plans, which are classified as unfunded per IAS 19 financial guidance. The postretirement health care benefits under the Plans are administered by Transamerica Corporation, which has delegated the claims administration to third-party administrators. Transamerica\u00a0maintains two plans which provide continuation of coverage for retiree medical benefits. For each plan, Transamerica\u00a0 has the fiduciary responsibility to administer the plan in accordance with its terms, and decides questions related to eligibility and determines plan provisions and benefit amounts.
Under the Employee Retirement Income Security Act (ERISA), Transamerica\u00a0has the fiduciary responsibility to monitor the\u00a0quality of services provided by the third-party claims administrator and to replace the third-party administrator if needed. In\u00a0addition, Transamerica\u00a0has the fiduciary obligation to interpret the provisions of the plans, and to comply with any statutory reporting and disclosure requirements. Finally, Transamerica\u00a0reviews the terms of the plans and makes changes to the plans if\u00a0and when appropriate. Transamerica\u00a0funds the benefit payments or premium payments of the post-retirement health care plans from its general account assets. The post-retirement health benefit liability amounted to EUR 190 million (2023:\u00a0EUR\u00a0176\u00a0million).
The weighted average duration of the defined benefit obligation is 8.0 years (2023: 9.0\u00a0years).
The principal actuarial assumptions that apply for the year ended December 31 are as follows:
| \n \n Actuarial assumptions used to determine defined benefit obligations at year-end | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n Mortality | \n \n \n US mortality | \n \n \n US mortality | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n Discount rate 3 | \n \n \n 5.59%/5.51% | \n \n \n 5.00%/4.93% | \n
| \n \n Salary increase rate | \n \n \n 4.00% | \n \n \n 4.00% | \n
| \n \n Health care trend rate | \n \n \n 6.90% | \n \n \n 6.80% | \n
The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions would have the following effects on the defined benefit obligation per year-end:
| \n | \n\n \n Estimated approximate effects on the defined benefit obligation | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n 10% increase in mortality rates | \n \n \n \n \n (46) \n | \n \n \n \n \n (47) \n | \n
| \n \n 10% decrease in mortality rates | \n \n \n 51 | \n \n \n 53 | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n 100 basis points increase in discount rate | \n \n \n \n \n (183) \n | \n \n \n \n \n (205) \n | \n
| \n \n 100 basis points decrease in discount rate | \n \n \n 232 | \n \n \n 250 | \n
| \n \n 100 basis points increase in salary increase rate | \n \n \n 4 | \n \n \n 5 | \n
| \n \n 100 basis points decrease in salary increase rate | \n \n \n \n \n (4) \n | \n \n \n \n \n (4) \n | \n
| \n \n 100 basis points increase in health care trend rate | \n \n \n 12 | \n \n \n 10 | \n
| \n \n 100 basis points decrease in health care trend rate | \n \n \n \n \n (10) \n | \n \n \n \n \n (9) \n | \n
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognized within the statement of financial position.
| \n | \n\n \n Target allocation of plan assets for retirement benefit plans for the next annual period is: | \n
| \n \n Equity instruments | \n \n \n 2%-4% | \n
| \n \n Debt instruments | \n \n \n 80%-90% | \n
| \n \n Other | \n \n \n 8%-16% | \n
Aegon UK operated a defined benefit pension scheme providing benefits for staff based on final pensionable salary and years of service. The scheme closed to new entrants a number of years ago and closed to future accrual on March 31, 2013. Aegon\u00a0UK now offers a defined contribution pension scheme to all employees.
The pension scheme is administered separately from Aegon UK and is governed by Trustees, who are required to act in the best interests of the pension scheme members.
The pension scheme Trustees are required to carry out triennial valuations of the scheme\u2019s funding position, with the latest valuation being on September\u00a030, 2022. As part of this triennial valuation process, a schedule of contributions is agreed between the Trustees and Aegon UK in accordance with UK pensions legislation and guidance issued by the Pensions Regulator in the United Kingdom. The schedule of contributions includes deficit reduction contributions to clear any scheme deficit. Under IAS 19, the defined benefit plan has a surplus of EUR 95 million on December 31, 2024 (2023: EUR 103 million surplus).\u00a0During 2024, EUR 10 million (2023: EUR 37 million) of contributions were paid into the scheme.
The investment strategy for the scheme is determined by the trustees in consultation with Aegon UK. Currently 12% of assets are invested in growth assets (i.e. primarily equities) and 88% are income and liability driven investments where the investments are a portfolio of fixed interest and inflation-linked bonds and related derivatives, selected to broadly match the\u00a0interest rate and inflation profile of liabilities.
Under the scheme rules, pensions in payment increase in line with the UK Retail Price Index, and deferred benefits increase in line with the UK Consumer Price Index. The pension scheme is therefore exposed to UK inflation changes as well as interest rate risks, investment returns, and changes in the life expectancy of pensioners.
The scheme holds three buy-in policies in the name of the Trustee to cover full scheme benefits for a group of pensioners. The\u00a0liabilities (and matching assets) calculated on the year end assumptions has been included in the funded position as at December 31, 2024.
The weighted average duration of the defined benefit obligation is 13.5 years (2023: 14.9 years).
The principal actuarial assumptions that apply for the year ended December 31 are as follows:
| \n \n Actuarial assumptions used to determine defined benefit obligations at year-end | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n Mortality | \n \n \n UK mortality table 1 | \n \n \n UK mortality table 2 | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n Discount rate | \n \n \n 5.58% | \n \n \n 4.79% | \n
| \n \n Price inflation | \n \n \n 3.19% | \n \n \n 3.10% | \n
The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions would have the following effects on the defined benefit obligation per year-end:
| \n | \n\n \n Estimated approximate effects on the defined benefit obligation | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n 10% increase in mortality rates | \n \n \n \n \n (21) \n | \n \n \n \n \n (20) \n | \n
| \n \n 10% decrease in mortality rates | \n \n \n 23 | \n \n \n 23 | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n 100 basis points increase in discount rate | \n \n \n \n \n (114) \n | \n \n \n \n \n (131) \n | \n
| \n \n 100 basis points decrease in discount rate | \n \n \n 142 | \n \n \n 166 | \n
| \n \n 100 basis points increase in price inflation | \n \n \n 50 | \n \n \n 62 | \n
| \n \n 100 basis points decrease in price inflation | \n \n \n \n \n (95) \n | \n \n \n \n \n (128) \n | \n
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognized within the statement of financial position.
| \n | \n\n \n Target allocation of plan assets for retirement benefit plans for the next annual period is: | \n
| \n \n Equity instruments | \n \n \n 11.5% | \n
| \n \n Debt instruments | \n \n \n 88.5% | \n
From July 1, 2023, following the transaction with a.s.r., employees of Aegon located in the Netherlands are employed by Aegon Employees Netherlands B.V. (AEN), an Aegon subsidiary included in the Holdings segment. AEN offers a defined contribution pension scheme to all employees in the Netherlands.
Until July 1, 2023, Aegon Nederland N.V. (legally merged with ASR Nederland N.V. on October 1, 2023 and therefore hereafter referred to as a.s.r.) was the employer of the employees of Aegon located in the Netherlands and operated a closed defined benefit pension plan under a pension contract. As of January 1, 2020, the defined benefit pension plan is closed for new members and there will be no further accrual of benefits to existing members. Entitlements before January 1, 2020, will remain unchanged and the indexation for those accruals will remain in force. The pension contract was updated as AEN was added as an employer upon the date of the transfer of employees to AEN.
The defined benefit plans cover retirement benefits, disability, death, and survivor pensions and the defined benefit obligation amounts to EUR 90 million on December 31, 2024 (December 31, 2023: EUR 90 million). The defined benefit obligation is backed by investments owned by a.s.r. The obligation of a.s.r. to fund the defined benefit obligation through these investments is reported as a reimbursement right. The average remaining duration of the defined benefits obligation is 20.8 years (2023: 21.9 years).
Also included in the reimbursement rights is the present value of the expected guaranteed premiums and management fees to be paid to a.s.r. by AEN. The present value as of December 31, 2024 amounts to EUR 80 million (December 31, 2023: EUR 69 million), discounted at a rate of 3.51% (2023: 3.42%).\u00a0
The liabilities related to other post-employment benefit plans, consisting of former Board of Directors unconditional indexation, jubilee and mortgage discount liabilities, are wholly unfunded and amount to EUR 4 million as of December 31, 2024 (December 31, 2023: EUR 5 million). The weighted average duration of the other post-employment benefit plans is\u00a011.4 years (2023: 12.0 years).\u00a0
The principal actuarial assumptions that apply for the year-ended December 31 are as follows:
| \n \n Actuarial assumptions used to determine defined benefit obligations at year-end | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n Mortality | \n \n \n Company specific based on Projections Life Table 2024 | \n \n \n AEGON 2023 1 | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n Discount rate | \n \n \n 3.51% | \n \n \n 3.42% | \n
| \n \n Price inflation | \n \n \n 1.99% | \n \n \n 2.36% | \n
The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions of the retirement benefit plan would have the following effects per year-end:
| \n | \n\n \n Estimated approximate effects on the defined benefit obligation | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n 10% increase in mortality rates | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n
| \n \n 10% decrease in mortality rates | \n \n \n 1 | \n \n \n 1 | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n 100 basis points increase in discount rate | \n \n \n \n \n (13) \n | \n \n \n \n \n (14) \n | \n
| \n \n 100 basis points decrease in discount rate | \n \n \n 17 | \n \n \n 18 | \n
The above sensitivity analysis is based on a change in one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit obligation recognized within the statement of financial position.
\nBusinesses included in all other operating segments mostly operate defined contribution plans. Please see note\u00a013 Other operating expenses for the employee expenses regarding these contribution plans.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5775m3799p": { "value": "\nMany Aegon employees, the Executive Director and a small number of senior management, participate in short-term incentive (STI) compensation, as aligned with the standard practice in their local markets. The STI allocation is awarded based on Aegon\u2019s performance, the employee\u2019s unit performance and individual performance against predefined financial and non-financial performance metrics and targets, as well as the continued employment of the employee. While most participants will be paid their short-term incentive in cash following the one-year performance period, selected senior employees will be paid partially in cash and partially in Aegon shares. The grant price of these shares is equal to the volume weighted average price (VWAP) on the Euronext stock exchange in Amsterdam during the period between December 15 preceding the plan year and January 15 of the plan year. The shares component of STI is deferred for two years, or for three years when the employee is classified as a Material Risk Taker in accordance with BMA Insurance Code of Conduct or other regulatory directives as applicable to their sector and location. These shares shall vest and be released following the adoption of the Company\u2019s Annual Accounts by the Board of Directors following the last deferral year. Employees are not eligible to receive a dividend during the deferral period of STI awards. In exceptional circumstances incentive compensation can be adjusted downwards before allocation or pay-out (malus) or after pay-out (claw back), after considering the outcomes of an ex-ante or ex-post risk assessment.
\nThe Executive Director and a small number of senior management may also participate in the long-term incentive (LTI) plan beginning in 2024.\u00a0 The LTI plan is structured to align the participants with long-term shareholder interests and is a performance based restricted stock plan settled in Aegon shares following the three-year performance period. The grant price of these shares is equal to the volume weighted average price (VWAP) on the Euronext stock exchange in Amsterdam during the period between December 15 preceding the plan year and January 15 of the plan year. During the performance period, dividend equivalents are accumulated and paid after the performance period. The awarded LTI shares shall vest and be released following the adoption of the company\u2019s Annual Accounts by the Board of Directors following the last performance year. For the Executive Director, the paid-out shares are subject to an additional holding period of two years which continues to apply post-employment. During this holding period, the Executive Director is not allowed to sell these shares. In exceptional circumstances, variable compensation can be adjusted downwards before allocation or pay-out (malus) or after pay-out (claw back), after considering the outcomes of an ex-ante or ex-post risk assessment.
\nSelected members of the Executive Committee as well as other senior employees receive part of their fixed compensation in\u00a0Aegon shares each pay round, next to receiving fixed compensation in cash. The grant price of these shares is equal to\u00a0the\u00a0volume-weighted average price (VWAP) on the Euronext stock exchange in Amsterdam during the period between December\u00a015 preceding the plan year and January 15 of the plan year. Once allocated these shares are unconditional and do\u00a0not depend on the continued employment of the employee.\u00a0These shares vest following approval of the Company\u2019s Annual Accounts by the Board of Directors relating to the last financial year in the performance period. In the former case, these paid-out shares are subject to an additional holding period of three years, while in the latter case there is no holding period after pay-out. During the holding period (if applicable), the employee is not allowed to sell these shares. During the\u00a0deferral period (if\u00a0applicable), the employee is not eligible to receive dividend.
\nThe annual Board fee of Non-Executive Directors is paid around 75% in cash and around 25% in fixed Aegon shares. The grant price of these shares is equal to the volume weighted average price (VWAP) on the Euronext stock exchange in Amsterdam during the period between December 15 preceding the plan year and January 15 of the plan year.
These shares vest after the completion of the calendar year. Dividend equivalents are accrued during the calendar year and will be payable as additional Aegon shares at the time of vesting. The shares do not depend on any performance condition. Shares are not forfeited when the Board membership of a Non-Executive Director is discontinued before vesting.\u00a0Shares granted to Non-Executive Directors do not have a holding period or a deferral period attached to them.
\nEmployees may be offered a sign-on arrangement when joining Aegon, with payments in cash and Aegon shares, within the applicable rules and regulations. Once allocated, the sign-on shares depend on the continued employment of the employee. These shares are deferred and typically cliff-vest one, two and three years after allocation. These shares are only paid out after approval of the company\u2019s annual accounts following the last deferral year. Employees are not eligible to receive a dividend during the deferral period.
The following overview contains the cumulative number of shares and their status in relation to active long term incentive plans, short term incentive plans, shares allocated as fixed compensation and shares allocated as part of a sign-on arrangement.
| \n \n Number of shares per plan year | \n \n \n 2020 | \n \n \n 2021 | \n \n \n 2022 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n Total | \n
| \n \n Conditionally granted 1 | \n \n \n 8,381,086 | \n \n \n 9,449,451 | \n \n \n 7,495,307 | \n \n \n 7,932,942 | \n \n \n 8,145,463 | \n \n \n 41,404,249 | \n
| \n \n Allocated 2, 3, 4 | \n \n \n 6,522,324 | \n \n \n 13,297,242 | \n \n \n 10,953,082 | \n \n \n 10,831,102 | \n \n \n 893,378 | \n \n \n 42,497,128 | \n
| \n \n Number of shares per plan year | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n 2020 | \n \n \n 2021 | \n \n \n 2022 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n Total | \n
| \n \n Unvested on January 1, 2022 | \n \n \n 6,997,435 | \n \n \n 11,825,532 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 18,822,967 | \n
| \n \n Conditionally granted as variable compensation 1 | \n \n \n - | \n \n \n - | \n \n \n 7,495,307 | \n \n \n - | \n \n \n - | \n \n \n 7,495,307 | \n
| \n \n Allocated 2 | \n \n \n 1,832 | \n \n \n 3,847,791 | \n \n \n 2,136,074 | \n \n \n - | \n \n \n - | \n \n \n 5,985,697 | \n
| \n \n Forfeited | \n \n \n \n \n (262,567) \n | \n \n \n \n \n (1,050,197) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,312,764) \n | \n
| \n \n Vested | \n \n \n \n \n (327,134) \n | \n \n \n \n \n (835,534) \n | \n \n \n \n \n (183,739) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,346,407) \n | \n
| \n \n Unvested on December 31, 2022 | \n \n \n 6,409,566 | \n \n \n 13,787,592 | \n \n \n 9,447,642 | \n \n \n - | \n \n \n - | \n \n \n 29,644,800 | \n
| \n \n Conditionally granted as variable compensation 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7,932,942 | \n \n \n - | \n \n \n 7,932,942 | \n
| \n \n Allocated 2 | \n \n \n 130,020 | \n \n \n \n \n (16,864) \n | \n \n \n 1,321,701 | \n \n \n 1,511,212 | \n \n \n - | \n \n \n 2,946,069 | \n
| \n \n Forfeited | \n \n \n \n \n (232,905) \n | \n \n \n \n \n (437,677) \n | \n \n \n \n \n (182,796) \n | \n \n \n \n \n (49,968) \n | \n \n \n - | \n \n \n \n \n (903,346) \n | \n
| \n \n Vested | \n \n \n \n \n (2,645,290) \n | \n \n \n \n \n (747,687) \n | \n \n \n \n \n (663,161) \n | \n \n \n \n \n (31,033) \n | \n \n \n - | \n \n \n \n \n (4,087,171) \n | \n
| \n \n Unvested on December 31, 2023 | \n \n \n 3,661,391 | \n \n \n 12,585,364 | \n \n \n 9,923,386 | \n \n \n 9,363,153 | \n \n \n - | \n \n \n 35,533,294 | \n
| \n \n Conditionally granted as variable compensation 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8,145,463 | \n \n \n 8,145,463 | \n
| \n \n Allocated 2 | \n \n \n 19,150 | \n \n \n 3,784 | \n \n \n 19,342 | \n \n \n 1,386,948 | \n \n \n 893,378 | \n \n \n 2,322,602 | \n
| \n \n Forfeited | \n \n \n - | \n \n \n \n \n (177,945) \n | \n \n \n \n \n (132,531) \n | \n \n \n \n \n (246,640) \n | \n \n \n - | \n \n \n \n \n (557,116) \n | \n
| \n \n Vested | \n \n \n \n \n (3,680,541) \n | \n \n \n \n \n (5,908,686) \n | \n \n \n \n \n (700,538) \n | \n \n \n \n \n (154,181) \n | \n \n \n \n \n (27,802) \n | \n \n \n \n \n (10,471,748) \n | \n
| \n \n Unvested on December 31, 2024 | \n \n \n - | \n \n \n 6,502,517 | \n \n \n 9,109,659 | \n \n \n 10,349,280 | \n \n \n 9,011,039 | \n \n \n 34,972,495 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Grant price (in EUR) 3 | \n \n \n 4.083 | \n \n \n 3.293 | \n \n \n 4.491 | \n \n \n 4.833 | \n \n \n 5.262 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value of shares at grant date | \n \n \n 1.794 to | \n \n \n 1.625 to | \n \n \n 3.341 to | \n \n \n 3.555 to | \n \n \n 3.7100 to | \n \n | \n
Aegon applies a net settlement option for participants in order to meet their income tax obligations when their shares are\u00a0paid\u00a0out. This means that Aegon will not sell shares on the market but hold these shares within Aegon and settle directly with the tax authorities in cash.\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f12486m5905p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Other income | \n \n \n 153 | \n \n \n 35 | \n \n \n 341 | \n
| \n \n Other charges | \n \n \n \n \n (8) \n | \n \n \n \n \n (92) \n | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 145 | \n \n \n \n \n (57) \n | \n \n \n 341 | \n
Other income in 2024 mainly reflects a gain on the completion of the part VII transfer of the legal ownership of the UK individual protection book to Royal London (EUR 46 million) and a gain on the disposal of a portfolio of insurance contracts and\u00a0related reinsurance contracts in the US (EUR 57 million).
The other charges in 2023 mainly relate to the book loss of the divestment of Aegon's businesses in Poland and Romania to\u00a0Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG), amounting to EUR 78 million.
Other income in 2022 includes the book gain on the divestment of Aegon Hungary and Aegon Turkey to Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) amounting to EUR 237 million, and the book gain on the divestment of Aegon's 50% stake in the Spanish insurance joint venture with LIberbank to Unicaja Banco amounting to EUR 91 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f8613m1256p": { "value": "\n| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Current tax | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Current year | \n \n | \n\n \n \n \n (19) \n | \n \n \n \n \n (4) \n | \n \n \n 6 | \n
| \n \n Adjustments to prior years | \n \n | \n\n \n 20 | \n \n \n 9 | \n \n \n 3 | \n
| \n \n Total current tax | \n \n | \n\n \n 1 | \n \n \n 5 | \n \n \n 9 | \n
| \n \n Deferred tax | \n \n \n 34 | \n \n | \n\n | \n\n | \n
| \n \n (Origination) / reversal of temporary differences | \n \n | \n\n \n 31 | \n \n \n 247 | \n \n \n \n \n (43) \n | \n
| \n \n Changes in tax rates / bases | \n \n | \n\n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (5) \n | \n
| \n \n 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 | \n \n | \n\n \n - | \n \n \n \n \n (9) \n | \n \n \n \n \n (8) \n | \n
| \n \n Non-recognition of deferred tax assets | \n \n | \n\n \n 13 | \n \n \n \n \n (61) \n | \n \n \n \n \n (9) \n | \n
| \n \n Adjustments to prior years | \n \n | \n\n \n \n \n (29) \n | \n \n \n 27 | \n \n \n \n \n (16) \n | \n
| \n \n Total deferred tax | \n \n | \n\n \n 15 | \n \n \n 204 | \n \n \n \n \n (80) \n | \n
| \n \n \n \n Income tax for the period income / (charge) \n | \n \n | \n\n \n 16 | \n \n \n 209 | \n \n \n \n \n (71) \n | \n
| \n \n Reconciliation between standard and effective income tax: | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Result before tax | \n \n \n 660 | \n \n \n \n \n (391) \n | \n \n \n 827 | \n
| \n \n Income tax calculated using weighted average applicable statutory tax rates | \n \n \n \n \n (119) \n | \n \n \n 94 | \n \n \n \n \n (188) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Differences due to the effects of: | \n \n | \n\n | \n\n | \n
| \n \n Non-taxable income | \n \n \n 44 | \n \n \n 39 | \n \n \n 103 | \n
| \n \n Non-tax-deductible expenses | \n \n \n \n \n (12) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (15) \n | \n
| \n \n Changes in tax rate/base | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (24) \n | \n
| \n \n Different tax rates on overseas earnings | \n \n \n \n \n (4) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (3) \n | \n
| \n \n Tax credits | \n \n \n 41 | \n \n \n 34 | \n \n \n 43 | \n
| \n \n Other taxes | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n 17 | \n
| \n \n Adjustments to prior years | \n \n \n \n \n (9) \n | \n \n \n 36 | \n \n \n \n \n (12) \n | \n
| \n \n 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 | \n \n \n 1 | \n \n \n \n \n (9) \n | \n \n \n \n \n (8) \n | \n
| \n \n Non-recognition of deferred tax assets | \n \n \n \n \n (28) \n | \n \n \n \n \n (20) \n | \n \n \n \n \n (9) \n | \n
| \n \n Tax effect of profit / (losses) from joint ventures and associates | \n \n \n 110 | \n \n \n 47 | \n \n \n 19 | \n
| \n \n Other | \n \n \n 1 | \n \n \n 3 | \n \n \n 7 | \n
| \n \n Total differences | \n \n \n 135 | \n \n \n 115 | \n \n \n 118 | \n
| \n \n \n \n Income tax for the period income / (charge) \n | \n \n \n 16 | \n \n \n 209 | \n \n \n \n \n (71) \n | \n
In September 2023, the legal seat of Aegon N.V. was redomiciled to Bermuda. Headquarters remained in the Netherlands and the company remained a Dutch tax resident. Aegon is within the scope of the OECD Pillar Two model rules. Pillar Two legislation was enacted in the Netherlands, the jurisdiction in which Aegon Ltd., as the ultimate parent entity, is a tax resident, and came into effect starting from 1 January 2024. Aegon has performed an assessment of its potential exposure to Pillar Two income taxes based on the 2024 financial information for the constituent entities in the Group. Based on the performed analysis, applying both the temporary safe harbors and detailed calculations, Aegon expects no top-up tax for 2024.
Aegon continues to monitor Pillar Two legislative developments, as further countries enact the Pillar Two model rules and additional guidance may be released, to evaluate the potential future impact on its consolidated results of operations, financial position and cash flows beginning.
The weighted average applicable statutory tax rate for 2024 is 18.0% (2023: 24.1%). The decrease in the weighted average applicable statutory tax rate compared to 2023 is mainly due to the relatively high contribution of income before tax in the equity accounted joint ventures and associates in 2024 which is presented net of tax in the consolidated income statement. The weighted average applicable statutory tax rate is driven by the mix of profits and losses in each jurisdiction and the relevant statutory tax rate. Including the income tax on equity accounted joint ventures and associates, the weighted average applicable statutory tax rate for 2024 is 24.9%.
Non-taxable income in 2024 is comprised of the regular non-taxable items such as the dividend received deduction in\u00a0the\u00a0United States.
Tax credits mainly include tax benefits from United States investments that provide affordable housing to individuals and\u00a0families that meet median household income requirements.
Other taxes mainly relate to policyholder taxes in the United Kingdom and state taxes in the United States.
In 2024, adjustments to prior years mainly consist of adjustments to the dividend received deduction in the United States for the years 2023 and 2022.
Non-recognition of deferred tax assets in 2024 includes the valuation allowance for state tax losses in the United States and interest expense losses in The Netherlands.
The following tables present income tax related to components of other comprehensive income and retained earnings.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Items that will not be reclassified to profit and loss: | \n \n | \n\n | \n\n | \n
| \n \n Remeasurements of defined benefit plans | \n \n \n 1 | \n \n \n 17 | \n \n \n \n \n (249) \n | \n
| \n \n Total items that will not be reclassified to profit and loss | \n \n \n 1 | \n \n \n 17 | \n \n \n \n \n (249) \n | \n
| \n \n Items that may be reclassified subsequently to profit and loss: | \n \n | \n\n | \n\n | \n
| \n \n Unrealized (Gains) / losses on revaluation of FVOCI investments | \n \n \n 237 | \n \n \n \n \n (487) \n | \n \n \n 3,499 | \n
| \n \n Revaluation reserve - Insurance contracts | \n \n \n \n \n (530) \n | \n \n \n 397 | \n \n \n \n \n (4,211) \n | \n
| \n \n Revaluation reserve - Reinsurance contracts | \n \n \n 177 | \n \n \n \n \n (126) \n | \n \n \n 1,243 | \n
| \n \n Changes in cash flow hedging reserve | \n \n \n 45 | \n \n \n 42 | \n \n \n 42 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserve | \n \n \n 7 | \n \n \n 3 | \n \n \n \n \n (12) \n | \n
| \n \n Total items that may be reclassified subsequently to profit and loss | \n \n \n \n \n (64) \n | \n \n \n \n \n (171) \n | \n \n \n 561 | \n
| \n \n Total income tax related to components of other comprehensive income | \n \n \n \n \n (63) \n | \n \n \n \n \n (154) \n | \n \n \n 312 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Income tax related to equity instruments and other | \n \n | \n\n | \n\n | \n
| \n \n Income tax related to equity instruments | \n \n \n \n \n (8) \n | \n \n \n 17 | \n \n \n 2 | \n
| \n \n Other | \n \n \n 7 | \n \n \n 1 | \n \n \n 1 | \n
| \n \n Total income tax recognized directly in retained earnings | \n \n \n \n \n (1) \n | \n \n \n 18 | \n \n \n 3 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Deferred tax assets | \n \n \n 2,439 | \n \n \n 2,350 | \n
| \n \n Deferred tax liabilities | \n \n \n 64 | \n \n \n 57 | \n
| \n \n Net closing balance, on December 31 | \n \n \n 2,375 | \n \n \n 2,293 | \n
| \n \n Deferred tax assets comprise temporary differences on: | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Real estate | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n
| \n \n Financial assets | \n \n \n 1,069 | \n \n \n 803 | \n
| \n \n Insurance and investment contracts | \n \n \n \n \n (1,124) \n | \n \n \n \n \n (599) \n | \n
| \n \n Deferred expenses and other intangible assets | \n \n \n 580 | \n \n \n 539 | \n
| \n \n Defined benefit plans | \n \n \n 237 | \n \n \n 214 | \n
| \n \n Tax losses and credits carried forward | \n \n \n 1,448 | \n \n \n 1,112 | \n
| \n \n Other | \n \n \n 231 | \n \n \n 283 | \n
| \n \n On December 31 | \n \n \n 2,439 | \n \n \n 2,350 | \n
| \n \n Deferred tax liabilities comprise temporary differences on: | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Financial assets | \n \n \n 1 | \n \n \n \n \n (6) \n | \n
| \n \n Insurance and investment contracts | \n \n \n 56 | \n \n \n 62 | \n
| \n \n Deferred expenses and other intangible assets | \n \n \n 4 | \n \n \n 2 | \n
| \n \n Other | \n \n \n 3 | \n \n \n \n \n (1) \n | \n
| \n \n On December 31 | \n \n \n 64 | \n \n \n 57 | \n
The following table provides a movement schedule of net deferred tax broken-down by those items for which a deferred tax asset or liability has been recognized.
| \n | \n\n \n Real estate | \n \n \n Financial assets | \n \n \n Insurance and investment contracts | \n \n \n Deferred expenses and other intangible assets | \n \n \n Defined benefit plans | \n \n \n Tax losses and credits carried forward | \n \n \n Other | \n \n \n Total | \n
| \n \n On January 1, 2024 | \n \n \n \n \n (2) \n | \n \n \n 809 | \n \n \n \n \n (661) \n | \n \n \n 537 | \n \n \n 214 | \n \n \n 1,112 | \n \n \n 284 | \n \n \n 2,293 | \n
| \n \n Acquisitions / Additions | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (10) \n | \n
| \n \n Charged to income statement | \n \n \n \n \n (1) \n | \n \n \n \n \n (76) \n | \n \n \n \n \n (109) \n | \n \n \n 12 | \n \n \n 12 | \n \n \n 259 | \n \n \n \n \n (83) \n | \n \n \n 15 | \n
| \n \n Charged to OCI | \n \n \n - | \n \n \n 278 | \n \n \n \n \n (354) \n | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n \n \n (4) \n | \n \n \n 8 | \n \n \n \n \n (75) \n | \n
| \n \n Net exchange differences | \n \n \n - | \n \n \n 63 | \n \n \n \n \n (63) \n | \n \n \n 36 | \n \n \n 15 | \n \n \n 81 | \n \n \n 19 | \n \n \n 151 | \n
| \n \n Disposal of a business | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1 | \n
| \n \n On December 31, 2024 | \n \n \n \n \n (2) \n | \n \n \n 1,068 | \n \n \n \n \n (1,180) \n | \n \n \n 576 | \n \n \n 237 | \n \n \n 1,448 | \n \n \n 228 | \n \n \n 2,375 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n \n \n (15) \n | \n \n \n 1,574 | \n \n \n \n \n (1,449) \n | \n \n \n 573 | \n \n \n 196 | \n \n \n 1,287 | \n \n \n 235 | \n \n \n 2,403 | \n
| \n \n Charged to income statement | \n \n \n 12 | \n \n \n \n \n (170) \n | \n \n \n 479 | \n \n \n \n \n (12) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (49) \n | \n \n \n \n \n (51) \n | \n \n \n 204 | \n
| \n \n Charged to OCI | \n \n \n - | \n \n \n \n \n (436) \n | \n \n \n 271 | \n \n \n - | \n \n \n 31 | \n \n \n - | \n \n \n - | \n \n \n \n \n (134) \n | \n
| \n \n Net exchange differences | \n \n \n - | \n \n \n \n \n (38) \n | \n \n \n 32 | \n \n \n \n \n (19) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (26) \n | \n \n \n \n \n (18) \n | \n \n \n \n \n (76) \n | \n
| \n \n Disposal of a business | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 8 | \n \n \n \n \n (2) \n | \n \n \n 8 | \n
| \n \n Transfers to disposal groups | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (1) \n | \n \n \n - | \n
| \n \n Transfer to/from other headings | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 118 | \n \n \n - | \n
| \n \n Transfer to/from current income tax | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (109) \n | \n \n \n - | \n \n \n \n \n (109) \n | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n 1 | \n \n \n 2 | \n \n \n \n \n (2) \n | \n
| \n \n On December 31, 2023 | \n \n \n \n \n (2) \n | \n \n \n 809 | \n \n \n \n \n (661) \n | \n \n \n 537 | \n \n \n 214 | \n \n \n 1,112 | \n \n \n 284 | \n \n \n 2,293 | \n
Transfer to/from current income tax in 2023 relates to the deferred tax asset for the loss carry forward position of the Dutch fiscal unity.
Deferred tax assets are recognized for tax losses and credits carried forward to the extent that the realization of the\u00a0related\u00a0tax benefit through future taxable profits is probable. For an amount of gross EUR 3,577 million; an amount of\u00a0tax\u00a0EUR\u00a0787\u00a0million related to tax losses carried forward (2023: gross EUR 2,564 million; tax EUR 573 million) and an\u00a0amount of tax EUR\u00a0661\u00a0million related to tax credits carried forward (2023: tax EUR 583 million) the realization of the\u00a0deferred\u00a0tax asset is dependent on the projection of future taxable profits.
For the following amounts, arranged by loss carry forward periods, the deferred tax asset is not recognized:
| \n | \n\n \n Gross amounts 1 | \n \n \n Not recognized deferred tax assets | \n ||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n < 5 years | \n \n \n 41 | \n \n \n 28 | \n \n \n 15 | \n \n \n 13 | \n
| \n \n \u2265 5 \u2013 10 years | \n \n \n 1 | \n \n \n 1 | \n \n \n 1 | \n \n \n - | \n
| \n \n \u2265 10 \u2013 15 years | \n \n \n - | \n \n \n - | \n \n \n 79 | \n \n \n 65 | \n
| \n \n \u2265 15 \u2013 20 years | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Indefinitely | \n \n \n 976 | \n \n \n 939 | \n \n \n 269 | \n \n \n 231 | \n
| \n \n On December 31 | \n \n \n 1,018 | \n \n \n 969 | \n \n \n 364 | \n \n \n 308 | \n
Deferred corporate income tax assets in respect of deductible temporary differences are recognized to the extent that the\u00a0realization of the related tax benefit through future taxable profits is probable. For the following amounts relating to deductible temporary differences the realization of the deferred corporate income tax asset is dependent on future taxable profits in excess of the profits arising from the reversal of existing taxable temporary differences.
| \n | \n\n \n Gross amounts | \n \n \n Deferred tax assets | \n ||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Deferred corporate income tax asset dependent on retaining bond and similar investments until the earlier of market recovery or maturity | \n \n \n 6,013 | \n \n \n 4,729 | \n \n \n 1,263 | \n \n \n 993 | \n
| \n \n Deferred corporate income tax asset dependent on future taxable profits | \n \n \n 141 | \n \n \n 1,717 | \n \n \n 30 | \n \n \n 362 | \n
| \n \n On December 31 | \n \n \n 6,154 | \n \n \n 6,446 | \n \n \n 1,293 | \n \n \n 1,355 | \n
Deferred taxes are non-current by nature and the majority of the deferred tax assets and liabilities will therefore reverse after more than one year after the balance sheet date.\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1305m1257p": { "value": "\nThe Group has applied the option from IAS 32 to recognize some of the Group\u2019s ordinary shares held as underlying assets of direct participating contracts as if they were financial assets. These shares are treated as outstanding shares (i.e. not treasury shares) and therefore not deducted from the number of shares outstanding.
\nBasic earnings per share is calculated by dividing the net result attributable to owners, after the deduction of coupons on perpetual securities, by the weighted average number of common shares, excluding common shares purchased by the Company and held as treasury shares (see note 25.1 Share capital \u2013 par value and 25.3 Treasury shares respectively).
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Net result attributable to owners of Aegon Ltd. | \n \n \n 688 | \n \n \n \n \n (179) \n | \n \n \n \n \n (1,019) \n | \n
| \n \n Coupons on perpetual securities | \n \n \n \n \n (77) \n | \n \n \n \n \n (48) \n | \n \n \n \n \n (36) \n | \n
| \n \n Net result attributable to owners for basic earnings per share calculation | \n \n \n 611 | \n \n \n \n \n (227) \n | \n \n \n \n \n (1,055) \n | \n
| \n \n Net result attributable to common shareholders | \n \n \n 608 | \n \n \n \n \n (225) \n | \n \n \n \n \n (1,048) \n | \n
| \n \n Net result attributable to common shareholders B | \n \n \n 4 | \n \n \n \n \n (1) \n | \n \n \n \n \n (7) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Weighted average number of common shares outstanding (in million) \n | \n \n \n 1,630 | \n \n \n 1,879 | \n \n \n 2,010 | \n
| \n \n \n \n Weighted average number of common shares B outstanding (in million) \n | \n \n \n 380 | \n \n \n 490 | \n \n \n 536 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Basic earnings per common share (EUR per share) \n | \n \n \n 0.37 | \n \n \n \n \n (0.12) \n | \n \n \n \n \n (0.52) \n | \n
| \n \n \n \n Basic earnings per common share B (EUR per share) \n | \n \n \n 0.01 | \n \n \n - | \n \n \n \n \n (0.01) \n | \n
The diluted earnings per share equaled the basic earnings per share for\u00a0all years disclosed as there were no long-term incentive plans that were considered dilutive.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5666m2725p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Cash at bank and in hand | \n \n \n 1,478 | \n \n \n 1,614 | \n \n \n 1,827 | \n
| \n \n Short-term deposits | \n \n \n 152 | \n \n \n 340 | \n \n \n 345 | \n
| \n \n Money market investments | \n \n \n 1,838 | \n \n \n 2,120 | \n \n \n 1,230 | \n
| \n \n On December 31 | \n \n \n 3,469 | \n \n \n 4,074 | \n \n \n 3,402 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Cash collateral related to securities lending, repurchase agreements and margins on derivatives transactions | \n \n \n 2,240 | \n \n \n 3,416 | \n \n \n 5,072 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Income from security lending programs | \n \n \n 4 | \n \n \n 7 | \n \n \n 7 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Weighted effective interest rate on short-term deposits | \n \n \n 3.17% | \n \n \n 3.90% | \n \n \n 1.70% | \n
| \n \n \n \n Average maturity on short-term deposits (in days) \n | \n \n \n 5 | \n \n \n 11 | \n \n \n 17 | \n
The carrying amounts disclosed reasonably approximate the fair values at year-end.
For cash collateral received related to securities lending, repurchase agreements, and margins on derivatives transactions, a\u00a0corresponding liability to repay the cash is recognized in other liabilities (see note 35 Other liabilities). Also, see note 40 Transfers of financial assets Transfer of financial assets for details on collateral received and paid. Investment of cash collateral received is restricted through limitations on credit worthiness, duration, approved investment categories, and borrower limits. Short-term collateral relates to cash collateral received included in cash and cash equivalents and the remainder is included in other asset classes as that collateral is typically reinvested. Aegon earns a share of the spread between the collateral earnings and the rebate paid to the borrower of the securities which is reflected in Income from securities lending programs.
Cash and cash equivalent balances that are not available for use by the group is EUR 141 million (2023: EUR 98 million, 2022: EUR 93 million).
| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Cash and cash equivalents | \n \n | \n\n \n 3,469 | \n \n \n 4,074 | \n \n \n 3,402 | \n
| \n \n Cash classified as Assets held for sale | \n \n | \n\n \n - | \n \n \n - | \n \n \n 5,085 | \n
| \n \n Net cash and cash equivalents | \n \n | \n\n \n 3,469 | \n \n \n 4,074 | \n \n \n 8,486 | \n
| \n \n Summary cash flow statement | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Net cash flows from operating activities | \n \n \n 762 | \n \n \n 864 | \n \n \n 2,672 | \n
| \n \n Net cash flows from investing activities | \n \n \n 300 | \n \n \n \n \n (1,996) \n | \n \n \n 733 | \n
| \n \n Net cash flows from financing activities | \n \n \n \n \n (1,755) \n | \n \n \n \n \n (3,241) \n | \n \n \n \n \n (1,834) \n | \n
| \n \n Net increase / (decrease) in cash and cash equivalents | \n \n \n \n \n (694) \n | \n \n \n \n \n (4,373) \n | \n \n \n 1,570 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Net cash and cash equivalents on December 31, are impacted by: | \n \n | \n\n | \n\n | \n
| \n \n Positive (negative) effects of changes in exchange rates | \n \n \n 88 | \n \n \n \n \n (38) \n | \n \n \n 55 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Cash at bank and in hand | \n \n \n 1,478 | \n \n \n 1,614 | \n \n \n 1,827 | \n
| \n \n Short-term deposits | \n \n \n 152 | \n \n \n 340 | \n \n \n 345 | \n
| \n \n Money market investments | \n \n \n 1,838 | \n \n \n 2,120 | \n \n \n 1,230 | \n
| \n \n On December 31 | \n \n \n 3,469 | \n \n \n 4,074 | \n \n \n 3,402 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Cash collateral related to securities lending, repurchase agreements and margins on derivatives transactions | \n \n \n 2,240 | \n \n \n 3,416 | \n \n \n 5,072 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Income from security lending programs | \n \n \n 4 | \n \n \n 7 | \n \n \n 7 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Weighted effective interest rate on short-term deposits | \n \n \n 3.17% | \n \n \n 3.90% | \n \n \n 1.70% | \n
| \n \n \n \n Average maturity on short-term deposits (in days) \n | \n \n \n 5 | \n \n \n 11 | \n \n \n 17 | \n
For cash collateral received related to securities lending, repurchase agreements, and margins on derivatives transactions, a\u00a0corresponding liability to repay the cash is recognized in other liabilities (see note 35 Other liabilities). Also, see note 40 Transfers of financial assets Transfer of financial assets for details on collateral received and paid. Investment of cash collateral received is restricted through limitations on credit worthiness, duration, approved investment categories, and borrower limits. Short-term collateral relates to cash collateral received included in cash and cash equivalents and the remainder is included in other asset classes as that collateral is typically reinvested. Aegon earns a share of the spread between the collateral earnings and the rebate paid to the borrower of the securities which is reflected in Income from securities lending programs.
Cash and cash equivalent balances that are not available for use by the group is EUR 141 million (2023: EUR 98 million, 2022: EUR 93 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5667m3768p": { "value": "| \n \n Summary cash flow statement | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Net cash flows from operating activities | \n \n \n 762 | \n \n \n 864 | \n \n \n 2,672 | \n
| \n \n Net cash flows from investing activities | \n \n \n 300 | \n \n \n \n \n (1,996) \n | \n \n \n 733 | \n
| \n \n Net cash flows from financing activities | \n \n \n \n \n (1,755) \n | \n \n \n \n \n (3,241) \n | \n \n \n \n \n (1,834) \n | \n
| \n \n Net increase / (decrease) in cash and cash equivalents | \n \n \n \n \n (694) \n | \n \n \n \n \n (4,373) \n | \n \n \n 1,570 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Net cash and cash equivalents on December 31, are impacted by: | \n \n | \n\n | \n\n | \n
| \n \n Positive (negative) effects of changes in exchange rates | \n \n \n 88 | \n \n \n \n \n (38) \n | \n \n \n 55 | \n
Total net cash flow from operating activities decreased by EUR 102 million to a EUR 762 million inflow (2023: EUR 864 million inflow, 2022: EUR 2,672 million inflow). Mainly due to:
Changes in financial results from insurance and investment contracts (see note 29 on (re-) insurance contracts and investment contracts with DPF),\u00a0
Partly offset by increase of the result before tax, and changes in accruals (see note 36 Accruals).
Net cash flows from investing activities increased by EUR 2,296 million to a EUR 300 million inflow (2023: 1,996 million outflow, EUR 2022: EUR 733 million inflow). This is mainly driven by net cash outflows related to the disposal of Aegon\u00a0the\u00a0Netherlands in 2023.
\nNet cash flow from financing activities increased by EUR 1,486 million to a EUR 1,755 million outflow (2023: EUR 3,241 million outflow, 2022: EUR 1,834 million outflow). The increase is a result of lower repayments of borrowings\u00a0(refer to the table below Reconciliation of liabilities arising from financing activities).\u00a0This is partly offset by lower proceeds from borrowings\u00a0(refer to the table below Reconciliation of liabilities arising from financing activities)\u00a0and a EUR 700 million repayment of a subordinated note (see\u00a0note 27 Subordinated borrowings).
\nTotal net cash flow from operating activities decreased by EUR 1,808 million to a EUR 864 million inflow (2022: EUR 2,672 million inflow). Mainly due to:
Changes in results from financial transactions (see note 9 Insurance net investment result and note 10 Other net investment result), partly offset by changes in financial results from insurance and investment contracts (see note 29 on (re-) insurance contracts and investment contracts with DPF and note 30 Investment contracts without DPF), and
The net disposal of investments (see note 19 Investments).
Net cash flows from investing activities decreased by EUR 2,729 million to a EUR 1,996 million outflow (2022: EUR 733 million inflow). This is mainly driven by net cash outflows related to the disposal of Aegon the Netherlands in 2023.
\nNet cash flow from financing activities decreased by EUR 1,407 million to a EUR 3,241 million outflow (2022: EUR 1,834 million outflow). The decrease is mainly driven by proceeds of borrowings (see note 31 Borrowings).
\nThe table below shows the reconciliation between the net cash flows from financing activities and the liabilities as included in the consolidated statement of financial position.
| \n | \n\n \n Cash flows | \n \n \n Non-cash changes | \n |||||||
| \n \n Reconciliation of debt from financing activities | \n \n \n January 1, 2024 | \n \n \n Addition | \n \n \n Repayment | \n \n \n Disposal of a business | \n \n \n Realized gains / losses in income statement | \n \n \n Movements related to fair value hedges | \n \n \n Amortization | \n \n \n Net exchange difference | \n \n \n December 31, 2024 | \n
| \n \n Subordinated borrowings | \n \n \n 2,244 | \n \n \n - | \n \n \n \n \n (700) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n 104 | \n \n \n 1,653 | \n
| \n \n Trust pass-through securities | \n \n \n 111 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (5) \n | \n \n \n \n \n (1) \n | \n \n \n 7 | \n \n \n 113 | \n
| \n \n Borrowings | \n \n \n 2,356 | \n \n \n 700 | \n \n \n \n \n (209) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n 162 | \n \n \n 3,013 | \n
| \n \n Assets held to hedge Trust | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (20) \n | \n
| \n | \n\n \n Cash flows | \n \n \n Non-cash changes | \n |||||||
| \n \n Reconciliation of debt from financing activities | \n \n \n January 1, 2023 | \n \n \n Addition | \n \n \n Repayment | \n \n \n Disposal of a business | \n \n \n Realized gains / losses in income statement | \n \n \n Movements related to fair value hedges | \n \n \n Amortization | \n \n \n Net exchange difference | \n \n \n December 31, 2023 | \n
| \n \n Subordinated borrowings | \n \n \n 2,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (54) \n | \n \n \n 2,244 | \n
| \n \n Trust pass-through securities | \n \n \n 118 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (4) \n | \n \n \n 111 | \n
| \n \n Borrowings | \n \n \n 4,051 | \n \n \n 1,604 | \n \n \n \n \n (3,239) \n | \n \n \n \n \n (8) \n | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (54) \n | \n \n \n 2,356 | \n
| \n \n Assets held to hedge Trust | \n \n \n \n \n (11) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (14) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 488 | \n \n \n 502 | \n
| \n \n Additions | \n \n \n 24 | \n \n \n 42 | \n
| \n \n Subsequent expenditure capitalized | \n \n \n 3 | \n \n \n 2 | \n
| \n \n Disposals | \n \n \n \n \n (34) \n | \n \n \n \n \n (18) \n | \n
| \n \n \n \n Fair value gains / (losses) \n | \n \n \n 10 | \n \n \n \n \n (50) \n | \n
| \n \n Net exchange differences | \n \n \n 23 | \n \n \n 9 | \n
| \n \n On December 31 | \n \n \n 514 | \n \n \n 488 | \n
| \n | \n\n | \n\n | \n
| \n \n Value of Aegon's properties, which were appraised in the current year | \n \n \n 100% | \n \n \n 99% | \n
| \n \n Appraisals performed by independent external appraisers | \n \n \n 96% | \n \n \n 95% | \n
| \n | \n\n | \n\n | \n\n \n 2024 | \n |||||||
| \n \n Derivatives | \n \n \n Derivative assets | \n \n \n Derivative liabilities | \n ||||||||
| \n | \n\n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Total | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Total | \n ||||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n||
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n | \n\n | \n\n \n Direct | \n \n \n Without direct part. | \n \n \n Direct | \n \n | \n\n | \n
| \n \n FVPL - mandatorily | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives not designated in a hedge | \n \n \n 66 | \n \n \n 477 | \n \n \n 53 | \n \n \n 10 | \n \n \n 606 | \n \n \n 157 | \n \n \n 983 | \n \n \n 135 | \n \n \n 56 | \n \n \n 1,331 | \n
| \n \n Derivatives designated as fair value hedges | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Derivatives designated as cash flow hedges | \n \n \n - | \n \n \n 136 | \n \n \n - | \n \n \n - | \n \n \n 136 | \n \n \n - | \n \n \n 1,100 | \n \n \n - | \n \n \n - | \n \n \n 1,100 | \n
| \n \n Derivatives designated as net foreign investment hedges | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 26 | \n \n \n 26 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n 2 | \n
| \n \n Total | \n \n \n 66 | \n \n \n 616 | \n \n \n 53 | \n \n \n 36 | \n \n \n 771 | \n \n \n 157 | \n \n \n 2,085 | \n \n \n 135 | \n \n \n 58 | \n \n \n 2,435 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Segregated by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives where Aegon bears the risk for financial performance | \n \n \n - | \n \n \n 616 | \n \n \n - | \n \n \n 26 | \n \n \n 643 | \n \n \n - | \n \n \n 2,085 | \n \n \n - | \n \n \n 44 | \n \n \n 2,129 | \n
| \n \n Derivatives where the policyholder bears the risk for financial performance | \n \n \n 66 | \n \n \n - | \n \n \n 53 | \n \n \n 10 | \n \n \n 129 | \n \n \n 157 | \n \n \n - | \n \n \n 135 | \n \n \n 14 | \n \n \n 306 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n ||||
| \n \n Derivatives | \n \n \n Derivative assets | \n \n \n Derivative liabilities | \n ||||||||
| \n | \n\n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Total | \n \n \n Insurance related | \n \n \n Non-Insurance related | \n \n \n Total | \n ||||
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n | \n\n | \n||
| \n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n | \n\n | \n\n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n | \n\n | \n
| \n \n FVPL - mandatorily | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives not designated in a hedge | \n \n \n 35 | \n \n \n 1,171 | \n \n \n 25 | \n \n \n 7 | \n \n \n 1,238 | \n \n \n 296 | \n \n \n 823 | \n \n \n 300 | \n \n \n 47 | \n \n \n 1,466 | \n
| \n \n Derivatives designated as fair value hedges | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Derivatives designated as cash flow hedges | \n \n \n - | \n \n \n 147 | \n \n \n - | \n \n \n - | \n \n \n 147 | \n \n \n - | \n \n \n 961 | \n \n \n - | \n \n \n - | \n \n \n 961 | \n
| \n \n Derivatives designated as net foreign investment hedges | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 39 | \n \n \n 39 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 48 | \n \n \n 48 | \n
| \n \n Total | \n \n \n 35 | \n \n \n 1,322 | \n \n \n 25 | \n \n \n 46 | \n \n \n 1,429 | \n \n \n 296 | \n \n \n 1,788 | \n \n \n 300 | \n \n \n 96 | \n \n \n 2,479 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Segregated by: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives where Aegon bears the risk for financial performance | \n \n \n - | \n \n \n 1,322 | \n \n \n - | \n \n \n 40 | \n \n \n 1,361 | \n \n \n - | \n \n \n 1,788 | \n \n \n - | \n \n \n 90 | \n \n \n 1,878 | \n
| \n \n Derivatives where the policyholder bears the risk for financial performance | \n \n \n 35 | \n \n \n - | \n \n \n 25 | \n \n \n 7 | \n \n \n 67 | \n \n \n 296 | \n \n \n - | \n \n \n 300 | \n \n \n 5 | \n \n \n 601 | \n
Where Aegon hedges minimum guarantees embedded in VFA products, the change in the fulfillment cash flows relating to the\u00a0hedged position is recognized in income rather than being booked to the Contractual Service Margin. In 2024, the amount booked to income was EUR 2,020 million (2023: EUR 1,481 million). For more details see note 29.5 Risk mitigation\u00a0and for the split between P&L and OCI, see note 9 Insurance net investment result.
Main reason of market value decrease on derivatives was increasing interest rates in 2024.\u00a0
The derivatives are measured at fair value through profit or loss in accordance with IFRS 9. For more details\u00a0on fair value measurement of derivatives see note 38 Fair value.
\n| \n | \n\n \n Derivative asset | \n \n \n Derivative liability | \n ||
| \n \n Derivatives not designated in a hedge \u2013 where Aegon bears the risk | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Derivatives held as an economic hedge | \n \n \n 477 | \n \n \n 1,171 | \n \n \n 954 | \n \n \n 812 | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n - | \n \n \n 71 | \n \n \n 53 | \n
| \n \n Total | \n \n \n 477 | \n \n \n 1,171 | \n \n \n 1,025 | \n \n \n 865 | \n
Aegon utilizes derivative instruments as a part of its asset-liability risk management practices. The derivatives held for risk management purposes are classified as economic hedges to the extent that they do not qualify for hedge accounting, or that Aegon has elected not to apply hedge accounting. The economic hedges of certain exposures relate to an existing asset, liability, or future reinvestment risk. In all cases, these are in accordance with internal risk guidelines and are closely monitored for continuing compliance.
Bifurcated embedded derivatives that are not closely related to the host contracts have been bifurcated and recorded at fair value in the consolidated statement of financial position. These bifurcated embedded derivatives are embedded in various institutional products.
\nAegon has entered into free-standing credit derivative transactions. The positions outstanding at the end of the year were:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n \n Credit derivative disclosure by quality | \n \n \n Notional | \n \n \n Fair value | \n \n \n Notional | \n \n \n Fair value | \n
| \n \n AAA | \n \n \n 4 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n
| \n \n AA | \n \n \n 111 | \n \n \n 1 | \n \n \n 97 | \n \n \n 1 | \n
| \n \n A | \n \n \n 1,233 | \n \n \n 16 | \n \n \n 1,021 | \n \n \n 16 | \n
| \n \n BBB | \n \n \n 2,310 | \n \n \n 50 | \n \n \n 2,746 | \n \n \n 52 | \n
| \n \n BB | \n \n \n 141 | \n \n \n 1 | \n \n \n 119 | \n \n \n 1 | \n
| \n \n B or lower | \n \n \n 51 | \n \n \n - | \n \n \n 57 | \n \n \n - | \n
| \n \n Total | \n \n \n 3,851 | \n \n \n 68 | \n \n \n 4,043 | \n \n \n 71 | \n
The\u00a0use of credit default swaps (CDS) is to create synthetic bonds. Aegon US uses credit default swaps to replicate or synthesize bonds, this is done via Replication (Synthetic Asset) Transactions (RSAT).\u00a0 This is an insurance industry concept that\u00a0allows insurance companies to use a derivative in conjunction with a cash investment to reproduce the investment characteristics of an otherwise permissible investment. There are three main types of RSAT transactions:
single asset replications
RSATs involving indices
RSATs involving baskets of assets
In each case the approach allows Aegon US to access credit risk in derivative form by using credit default swaps in conjunction with cash or sovereign bonds to replicate (synthetically create) corporate bonds. \u00a0The table above provides a\u00a0breakdown of the credit quality of these credit derivatives.
\nAegon's fair value hedges include interest rate swaps, swaptions, equity and fixed income total return swaps, equity options, equity futures, bond futures and variance swaps that are used to protect against changes in the fair value of interest rate and equity-sensitive instruments or liabilities. Gains and losses on derivatives designated under fair value hedge accounting are recognized in the income statement. The effective portion of the fair value change on the hedged item is also recognized in the income statement. As a result, only the net accounting ineffectiveness has an impact on the net result.
Aegon has entered into interest rate swap agreements that effectively convert certain fixed-rate assets and liabilities to a\u00a0floating-rate basis. These hedges are used for portfolio management to better match assets to liabilities or to protect the\u00a0value of the hedged item from interest rate movements. These agreements involve the payment or receipt of fixed-rate interest amounts in exchange for floating-rate interest amounts over the life of the agreement without the exchange of the underlying principal amounts. Some of the arrangements use forward starting swaps to better match the duration of assets and liabilities.
Aegon has entered into cross-currency interest rate swap agreements that effectively convert certain foreign currency fixed-rate and floating-rate assets and liabilities to US dollar floating-rate assets and liabilities. These agreements involve the exchange of the underlying principal amounts.
\nAegon has entered primarily into interest rate swap agreements that effectively convert certain variable-rate assets and liabilities to a fixed-rate basis in order to match the cash flows of the assets and liabilities within Aegon\u2019s portfolio more closely. These agreements involve the payment or receipt of variable-rate interest amounts in exchange for fixed-rate interest amounts over the life of the agreement without the exchange of the underlying principal amounts. Aegon hedges its exposure to the variability of future cash flows from the interest rate movements for terms up to 20 years for hedges converting existing floating-rate assets and liabilities to fixed-rate assets.
Aegon uses forward-starting interest rate swap agreements to hedge the variability in future cash flows associated with the forecasted purchase of fixed-income assets. These agreements reduce the impact of future interest rate changes on the forecasted transaction. Fair value adjustments for these interest rate swaps are deferred and recorded in equity until the occurrence of the forecasted transaction at which time the interest rate swaps will be terminated. The accumulated gain or loss in equity will be amortized into investment income as the acquired asset affects income. Aegon hedges its exposure to the variability of future cash flows from interest rate movements for terms up to 19 years. The cash flows from these hedging instruments are expected to affect the profit and loss for approximately the next 38 years. For the year ended December 31, 2024, the contracts for which cash flow hedge accounting was terminated resulted in deferred gains of EUR 55 million (2023: EUR 75 million) that are recognized directly in equity to be reclassified as net result during the period when the cash flows occur of the underlying hedged items. In 2024, none of Aegon's active cash flow hedges were discontinued as it was highly probable that the original forecasted transactions would occur by the end of the originally specified time period documented at the inception of the hedging relationship. All reported discontinued cash flow hedges are a product of completed forecasted transactions at which point the hedges were unwound.\u00a0\u200b\u200b\u200b\u200b\u200b\u200b\u200bAegon projects investment needs many years into the future in order to support the insurance liabilities and pay all contractual obligations arising from the policies in force today.
In addition, Aegon also makes use of cross-currency swaps to convert variable or fixed foreign currency cash flows into fixed cash flows in local currencies. The cash flows from these hedging instruments are expected to occur over the next 32 years. These agreements involve the exchange of the underlying principal amounts.
| \n \n \n \n Hedge ineffectiveness and reclassification of gains (losses) \n | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Hedge ineffectiveness on cash flow hedges | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (3) \n | \n
| \n \n Gains (losses) reclassified from equity into the income statement | \n \n \n 42 | \n \n \n 20 | \n \n \n \n \n (102) \n | \n
| \n \n Expected deferred gain (loss) to be reclassified from equity into net result during the next 12 months | \n \n \n 88 | \n \n \n 114 | \n \n \n 116 | \n
The periods when the contractual, undiscounted cash flows are expected to occur are as follows:
| \n | \n\n \n < 1yr | \n \n \n 1 < 2 yrs | \n \n \n 2 < 3 yrs | \n \n \n 3 < 4 yrs | \n \n \n 4 < 5 yrs | \n \n \n > 5 yrs | \n \n \n Total 2024 | \n
| \n \n Cash inflows | \n \n \n 582 | \n \n \n 425 | \n \n \n 380 | \n \n \n 323 | \n \n \n 286 | \n \n \n 6,587 | \n \n \n 8,583 | \n
| \n \n Cash outflows | \n \n \n 475 | \n \n \n 360 | \n \n \n 323 | \n \n \n 259 | \n \n \n 246 | \n \n \n 11,644 | \n \n \n 13,308 | \n
| \n \n Net cash flows | \n \n \n 107 | \n \n \n 65 | \n \n \n 57 | \n \n \n 64 | \n \n \n 40 | \n \n \n \n \n (5,057) \n | \n \n \n \n \n (4,725) \n | \n
| \n | \n\n \n < 1yr | \n \n \n 1 < 2 yrs | \n \n \n 2 < 3 yrs | \n \n \n 3 < 4 yrs | \n \n \n 4 < 5 yrs | \n \n \n > 5 yrs | \n \n \n Total 2023 | \n
| \n \n Cash inflows | \n \n \n 282 | \n \n \n 253 | \n \n \n 260 | \n \n \n 286 | \n \n \n 341 | \n \n \n 7,509 | \n \n \n 8,930 | \n
| \n \n Cash outflows | \n \n \n 560 | \n \n \n 224 | \n \n \n 244 | \n \n \n 266 | \n \n \n 271 | \n \n \n 12,248 | \n \n \n 13,813 | \n
| \n \n Net cash flows | \n \n \n \n \n (277) \n | \n \n \n 28 | \n \n \n 16 | \n \n \n 19 | \n \n \n 70 | \n \n \n \n \n (4,740) \n | \n \n \n \n \n (4,883) \n | \n
On 30 September 2024, the remaining synthetic LIBOR rates were published for the last time and LIBOR came to an end. Before this, all derivative financial instruments using USD LIBOR and GBP LIBOR as a benchmark rate, transitioned to an alternative benchmark rate.
\nAegon funds its investments in insurance subsidiaries with a mixture of debt and equity. Aegon aims to denominate debt funding in the same currency as the functional currency of the investment. Investments outside the Eurozone, the United\u00a0States and the United Kingdom are funded in euros. When the debt funding of investments is not in the functional currency of the investment, Aegon uses derivatives to swap the currency exposure of the debt instrument to the appropriate functional currency. This policy will ensure that total capital will reflect currency movements without distorting debt to shareholders\u2019 equity ratios. Aegon utilizes various financial instruments as the designated hedging instruments of its foreign investments. These\u00a0instruments include long-term and short-term borrowings, short-term debts to credit institutions, cross-currency swap contracts, and forward foreign exchange contracts.
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized directly in OCI; the gains or losses relating to the ineffective portion is recognized immediately in the P&L. Gains and losses accumulated in equity are included in the P&L when the foreign operation is disposed of as part of the gain or loss of the disposal.
\nThe following table sets out the maturity profile and average price/rate of the hedging instruments used in Aegon\u2019s hedging strategies:
| \n \n Notionals are in EUR million | \n \n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n Maturity | \n ||||
| \n | \n\n \n Up to 1 month | \n \n \n 1-3 months | \n \n \n 3-12 months | \n \n \n 1-5 years | \n \n \n > 5 years | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n 22 | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,352 | \n
| \n \n Average fixed interest rate | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3.06% | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 190 | \n \n \n 1,013 | \n
| \n \n Average exchange rate EUR/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.13 | \n \n \n 1.13 | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate USD/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.88 | \n \n \n 0.89 | \n
| \n \n Average exchange rate USD/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.74 | \n \n \n 0.76 | \n
| \n \n Average exchange rate GBP/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate GBP/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.35 | \n \n \n 1.32 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n 22 | \n \n \n 5 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/USD | \n \n \n 0.97 | \n \n \n 0.97 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n 1.21 | \n \n \n 1.21 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Notionals are in EUR million | \n \n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n \n Maturity | \n ||||
| \n | \n\n \n Up to 1 month | \n \n \n 1-3 months | \n \n \n 3-12 months | \n \n \n 1-5 years | \n \n \n > 5 years | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 88 | \n \n \n 21 | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 5,540 | \n
| \n \n Average fixed interest rate | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2.83% | \n
| \n \n Foreign exchange contracts | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 121 | \n \n \n 835 | \n
| \n \n Average exchange rate EUR/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.16 | \n \n \n 1.13 | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate USD/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.87 | \n \n \n 0.88 | \n
| \n \n Average exchange rate USD/GBP | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.74 | \n \n \n 0.76 | \n
| \n \n Average exchange rate GBP/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.35 | \n \n \n 1.32 | \n
| \n \n Average exchange rate GBP/USD | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n \n \n (8) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/USD | \n \n \n 0.91 | \n \n \n 0.91 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Average exchange rate EUR/GBP | \n \n \n 1.15 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
The following table contains details of the hedging instruments used in Aegon\u2019s hedging strategies that are booked under line item \"Derivatives\" in the consolidated statement of financial position:
| \n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n | \n\n \n Carrying amounts | \n \n | \n|
| \n | \n\n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Changes in fair value used for calculating hedge ineffectiveness | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 32 | \n \n \n - | \n \n \n 3 | \n \n \n 2 | \n
| \n \n Foreign exchange contracts | \n \n \n 9 | \n \n \n 3 | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 5,352 | \n \n \n 12 | \n \n \n 1,092 | \n \n \n \n \n (106) \n | \n
| \n \n Foreign exchange contracts | \n \n \n 1,202 | \n \n \n 124 | \n \n \n 8 | \n \n \n 15 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n 27 | \n \n \n 26 | \n \n \n 2 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n | \n\n \n Carrying amounts | \n \n | \n|
| \n | \n\n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Changes in fair value used for calculating hedge ineffectiveness | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 109 | \n \n \n 1 | \n \n \n 4 | \n \n \n - | \n
| \n \n Foreign exchange contracts | \n \n \n 8 | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 5,540 | \n \n \n 42 | \n \n \n 950 | \n \n \n 106 | \n
| \n \n Foreign exchange contracts | \n \n \n 956 | \n \n \n 105 | \n \n \n 11 | \n \n \n \n \n (44) \n | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n \n \n (9) \n | \n \n \n 39 | \n \n \n 48 | \n \n \n - | \n
The following table contains details of the hedged exposures covered by Aegon\u2019s hedging strategies that are booked under line item \"Derivatives\" in the consolidated statement of financial position:
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n Carrying amounts | \n \n \n Accumulated amount of fair value adjustments on the hedged item | \n \n | \n\n | \n||
| \n | \n\n \n Assets | \n \n \n Liabilities | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Balance sheet line item | \n \n \n Change in fair value of hedged item for ineffectiveness assessment | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Corporate Debt Hedge Program | \n \n \n - | \n \n \n 66 | \n \n \n - | \n \n \n \n \n (19) \n | \n \n \n Trust pass-through securities | \n \n \n 3 | \n
| \n \n Offshore Liability Hedge Program | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 2 | \n \n \n Investment contracts without discretionary participating features | \n \n \n - | \n
| \n \n Synthetic Asset Fair value hedges | \n \n \n 35 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n Investments | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n \n Carrying amounts | \n \n \n Accumulated amount of fair value adjustments on the hedged item | \n \n | \n\n | \n||
| \n | \n\n \n Assets | \n \n \n Liabilities | \n \n \n Assets | \n \n \n Liabilities | \n \n \n Balance sheet line item | \n \n \n Change in fair value of hedged item for ineffectiveness assessment | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Corporate Debt Hedge Program | \n \n \n - | \n \n \n 67 | \n \n \n - | \n \n \n \n \n (13) \n | \n \n \n Trust pass-through securities | \n \n \n 3 | \n
| \n \n Offshore Liability Hedge Program | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 2 | \n \n \n Investment contracts without discretionary participating features | \n \n \n - | \n
| \n \n Synthetic Asset Fair value hedges | \n \n \n 34 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n Investments | \n \n \n 1 | \n
| \n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n | \n\n \n Cash flow hedge / currency translation reserve | \n |
| \n | \n\n \n Change in fair value of hedged item for ineffectiveness assessment | \n \n \n Continuing hedges | \n \n \n Discontinued hedges | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n
| \n \n Synthetic Asset Cash flow hedges | \n \n \n \n \n (215) \n | \n \n \n 189 | \n \n \n - | \n
| \n \n Life & Health Liability Investment Risk Hedge Program | \n \n \n \n \n (111) \n | \n \n \n \n \n (483) \n | \n \n \n 126 | \n
| \n \n Long Term Care (LTC) Liability Hedge Program | \n \n \n \n \n (21) \n | \n \n \n \n \n (38) \n | \n \n \n 1,095 | \n
| \n \n IMD Payout Hedge | \n \n \n - | \n \n \n - | \n \n \n 31 | \n
| \n \n TRS (Vivendi) Hedge | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n
| \n \n Investments in foreign operations | \n \n \n - | \n \n \n \n \n (383) \n | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n | \n\n \n Cash flow hedge / currency translation reserve | \n |
| \n | \n\n \n Change in fair value of hedged item for ineffectiveness assessment | \n \n \n Continuing hedges | \n \n \n Discontinued hedges | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n
| \n \n Synthetic Asset Cash flow hedges | \n \n \n 11 | \n \n \n 87 | \n \n \n - | \n
| \n \n Life & Health Liability Investment Risk Hedge Program | \n \n \n 5 | \n \n \n \n \n (348) \n | \n \n \n 232 | \n
| \n \n Long Term Care (LTC) Liability Hedge Program | \n \n \n 1 | \n \n \n \n \n (15) \n | \n \n \n 1,085 | \n
| \n \n IMD Payout Hedge | \n \n \n - | \n \n \n - | \n \n \n 29 | \n
| \n \n TRS (Vivendi) Hedge | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n
| \n \n Investments in foreign operations | \n \n \n - | \n \n \n \n \n (324) \n | \n \n \n - | \n
If there is a mismatch between critical terms of hedging instruments and hedged items, changes in fair value may not be offset. The qualitative hedge effectiveness test assures all critical terms align.
Counterparty default: If the counterparty fails to fulfill the contract, the hedge will not be highly effective. All derivatives in\u00a0this program are collateralized or cleared, so the impact from this credit risk will not dominate the hedge relationship.
Counterparty default: If the counterparty fails to fulfill the contract, the hedge will not be highly effective. All derivatives in\u00a0this program are collateralized or cleared, so the impact from this credit risk will not dominate the hedge relationship.
Expected future transactions fail to occur as projected: the hedging instrument (i.e. FSS) terms are already known and easily valued. However, the hedged item consists of one or more forecasted asset purchases for which we are unable to project exactly the dates, coupon rates, and other underlying terms. Given these unknown variables in the hedged item, for the period in which the FSS remains in inventory and the forecasted transactions have not been completed, the hedged item portion of this relationship will be setup assuming identical dates and rates as outlined in the hedging instrument.
When the forecasted transaction (i.e. bond purchase) is completed and the terms of the underlying hedged item are known, hedge ineffectiveness would possibly arise if the timing of the asset being purchased differs from the unwind date of the swaps designated as the hedging instrument, or the coupon rate of the asset being purchased differs from the coupon rate on the receive leg of the swap, or a combination of both.\u00a0
The hedge ineffectiveness would possibly arise if the timing of the asset being purchased differs from the unwind date of the swaps designated as the hedging instrument, or the coupon rate of the asset being purchased differs from the coupon rate on the receive leg of the swap, or a combination of both.
Mismatch of critical terms: If critical terms do not match between the hedged item and the hedged instrument, hedge ineffectiveness can arise.\u00a0
Counterparty default: If the counterparty fails to fulfill the contract, the hedge will not be highly effective. All derivatives in\u00a0this program are collateralized or cleared, so the impact from this credit risk will not dominate the hedge relationship.
The following table contains information regarding the effectiveness of the hedging relationships designated by Aegon, as\u00a0well\u00a0as the impacts on profit or loss and other comprehensive income that are booked under line item \"Results from financial transactions\" (including the reclassified amount where applicable):
| \n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n | \n\n | \n\n \n Amounts reclassified from reserves to P&L as | \n ||
| \n | \n\n \n Gains / (loss) recognized in OCI | \n \n \n Hedge ineffectiveness recognized in P&L | \n \n \n P&L line item that includes hedge ineffectiveness | \n \n \n hedged cash flows will no longer occur | \n \n \n hedged item affected P&L | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n n.a. | \n \n \n \n \n (2) \n | \n \n \n Results from financial transactions | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Foreign exchange contracts | \n \n \n n.a. | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n - | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
| \n \n Foreign exchange contracts | \n \n \n - | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n - | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2023 | \n
| \n | \n\n | \n\n | \n\n \n Amounts reclassified from reserves to P&L as | \n ||
| \n | \n\n \n Gains / (loss) recognized in OCI | \n \n \n Hedge ineffectiveness recognized in P&L | \n \n \n P&L line item that includes hedge ineffectiveness | \n \n \n hedged cash flows will no longer occur | \n \n \n hedged item affected P&L | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n n.a. | \n \n \n \n \n (3) \n | \n \n \n Results from financial transactions | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Foreign exchange contracts | \n \n \n n.a. | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n - | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
| \n \n Foreign exchange contracts | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n - | \n \n \n - | \n \n \n Results from financial transactions | \n \n \n - | \n \n \n - | \n
Aegon recognizes the separate line items: \"Changes in cash flow hedging reserve\" and\u00a0 \"Movement in foreign currency translation and net foreign investment hedging reserves\" in the statement of comprehensive income related to hedges of net\u00a0positions gains and losses. Refer to note 25 Shareholders' equity for more details on these items.
\nThe following table shows \u00a0reconciliation of nominal amount and fair value of credit derivatives that have been used to\u00a0manage the credit risk of financial instruments designated as FVPL:
| \n | \n\n \n CDSs | \n |
| \n \n Credit derivative disclosure by quality | \n \n \n Nominal amount | \n \n \n Fair value | \n
| \n \n On January 1, 2024 | \n \n \n 4,043 | \n \n \n 71 | \n
| \n \n Increase/(Decrease) during the year | \n \n \n \n \n (192) \n | \n \n \n \n \n (2) \n | \n
| \n \n On December 31, 2024 | \n \n \n 3,851 | \n \n \n 68 | \n
| \n | \n\n \n CDSs | \n |
| \n \n Credit derivative disclosure by quality | \n \n \n Nominal amount | \n \n \n Fair value | \n
| \n \n On January 1, 2023 | \n \n \n 4,820 | \n \n \n 28 | \n
| \n \n Increase/(Decrease) during the year | \n \n \n \n \n (778) \n | \n \n \n 43 | \n
| \n \n On December 31, 2023 | \n \n \n 4,043 | \n \n \n 71 | \n
The following table only includes financial positions for which there is a recognized corresponding position that could be offset under a legally enforceable master netting arrangement or similar agreement. Aegon also enters into collateralized (reverse) repo or security lending and borrowing transactions, for which the collateral is not recognized on the balance sheet. For further information on the financial positions resulting from such transactions please see note 40 Transfer of financial assets. The table provides details relating to the effect, or potential effect, of netting arrangements, including rights to set-off, associated with the entity's recognized financial assets and recognized financial liabilities.
| \n | \n\n \n Gross amounts of recognized financial assets | \n \n \n Gross amounts of recognized financial liabilities set off in the statement of financial position | \n \n \n Net amounts of financial assets presented in the statement of financial position | \n \n \n Related amounts not set off in the statements of financial position | \n \n \n Net amount | \n |
| \n \n Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements | \n \n \n Financial instruments | \n \n \n \n \n Cash collateral received (excluding surplus collateral) \n | \n ||||
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 723 | \n \n \n 5 | \n \n \n 718 | \n \n \n 628 | \n \n \n 81 | \n \n \n 8 | \n
| \n \n On December 31 | \n \n \n 723 | \n \n \n 5 | \n \n \n 718 | \n \n \n 628 | \n \n \n 81 | \n \n \n 8 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 1,341 | \n \n \n - | \n \n \n 1,341 | \n \n \n 631 | \n \n \n 707 | \n \n \n 2 | \n
| \n \n On December 31 | \n \n \n 1,341 | \n \n \n - | \n \n \n 1,341 | \n \n \n 631 | \n \n \n 707 | \n \n \n 2 | \n
| \n | \n\n \n Gross amounts of recognized financial liabilities | \n \n \n Gross amounts of recognized financial assets set off in the statement of financial position | \n \n \n Net amounts of financial liabilities presented in the statement of financial position | \n \n \n Related amounts not set off in the statements of financial position | \n \n \n Net amount | \n |
| \n \n Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements | \n \n \n Financial instruments | \n \n \n \n \n Cash collateral pledged (excluding surplus collateral) \n | \n ||||
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 2,302 | \n \n \n - | \n \n \n 2,302 | \n \n \n 1,537 | \n \n \n 710 | \n \n \n 55 | \n
| \n \n On December 31 | \n \n \n 2,302 | \n \n \n - | \n \n \n 2,302 | \n \n \n 1,537 | \n \n \n 710 | \n \n \n 55 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 2,361 | \n \n \n - | \n \n \n 2,361 | \n \n \n 1,245 | \n \n \n 1,026 | \n \n \n 90 | \n
| \n \n On December 31 | \n \n \n 2,361 | \n \n \n - | \n \n \n 2,361 | \n \n \n 1,245 | \n \n \n 1,026 | \n \n \n 90 | \n
Financial assets and liabilities are offset in the statement of financial position when the Group has a legally enforceable right to offset and has the intention to settle the asset and liability on a net basis, or to realize the asset and settle the liability simultaneously. As shown in the second column there are EUR 5 millions of Derivatives offset in 2024 and no financial assets and liabilities offset in 2023.
The line Derivatives includes both derivatives for general account and derivatives where the policyholder bears the risk.
Aegon mitigates credit risk in derivative contracts by entering into collateral agreements, where practical, and in ISDA master netting agreements for each of Aegon\u2019s legal entities to facilitate Aegon\u2019s right to offset credit risk exposure. The credit support agreement will normally dictate the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of over-the-counter derivative trades, comprised mostly of interest rate swaps, currency swaps and credit swaps. These transactions are conducted under terms that are usual and customary to standard long-term borrowing, derivatives, securities lending and securities borrowing activities, as well as requirements determined by exchanges where the bank acts as an intermediary.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f12500m5898p": { "value": "\n| \n | \n\n \n Joint ventures | \n \n \n Associates | \n ||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 1,430 | \n \n \n 1,430 | \n \n \n 2,906 | \n \n \n 165 | \n
| \n \n Additions | \n \n \n 1 | \n \n \n 49 | \n \n \n - | \n \n \n 2,765 | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (34) \n | \n \n \n \n \n (12) \n | \n
| \n \n Share in net income | \n \n \n 238 | \n \n \n 196 | \n \n \n 345 | \n \n \n 103 | \n
| \n \n \n \n Share in changes in equity (note 25.6) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (2) \n | \n \n \n 85 | \n \n \n \n \n (9) \n | \n
| \n \n Impairment losses | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (25) \n | \n
| \n \n Dividend | \n \n \n \n \n (141) \n | \n \n \n \n \n (211) \n | \n \n \n \n \n (199) \n | \n \n \n \n \n (81) \n | \n
| \n \n Net exchange difference | \n \n \n 1 | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n 19 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 1,503 | \n \n \n 1,430 | \n \n \n 3,122 | \n \n \n 2,906 | \n
The joint ventures and associates are accounted for using the equity method and are considered to be non-current.\u00a0The\u00a0investments in joint ventures and associates include interest in insurance companies that are required to maintain a minimum solvency margin based on local directives. Such restrictions can affect the ability of these joint ventures and associates to\u00a0transfer funds in the form of cash dividends, or repayment of loans or advances, and therefore, there can be no assurance that\u00a0these restrictions will not become a limitation in the future. See note 39 Commitments and contingencies for any commitments and contingencies related to investments in joint ventures. There are no unrecognized shares of losses in joint ventures and associates. The financial statements of the principal joint ventures and associates have the same reporting date as the Group. See note\u00a043 Group companies for a listing of the investments in joint ventures and associates and the Group\u2019s percentage holding.
Joint ventures include our joint operation in China operating under the name Aegon THTF Life Insurance Co. Other than disclosed in note 29.3 Critical judgments and estimates, for the valuation of the insurance liabilities of our joint venture in\u00a0China the risk-free yield curve is based on government bond yields and is constructed using a market-observed curve up to\u00a0a\u00a0last liquid point (20 years) and then extrapolating in 20 years to an ultimate spot rate. The ultimate spot rate used for discounting liability cash flows aligns with local market practice in China and amounts to 4.2% on December 31, 2024 (2023: 4.5%) excluding an illiquidity premium (ILP) of 30 bps (2023: 45 bps) for the first 20 years and 20 bps thereafter (2023: 0).
\nThe summarized financial information presented in the following table presents the joint ventures on a 100% basis. Aegon\u00a0considers its investments in Santander Vida Seguros y Reaseguros S.A. (Santander Spain Life) and Aegon Industrial Fund Management Co.Ltd. (AIFMC) as\u00a0material joint ventures and are therefore presented separately.
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of financial position | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash and cash equivalents | \n \n \n 30 | \n \n \n 18 | \n \n \n 436 | \n \n \n 421 | \n \n \n 72 | \n \n \n 47 | \n
| \n \n Other current assets | \n \n \n 63 | \n \n \n 76 | \n \n \n 744 | \n \n \n 654 | \n \n \n 1,055 | \n \n \n 840 | \n
| \n \n Total current assets | \n \n \n 93 | \n \n \n 94 | \n \n \n 1,180 | \n \n \n 1,075 | \n \n \n 1,127 | \n \n \n 887 | \n
| \n \n Non-current assets | \n \n \n 1,023 | \n \n \n 1,056 | \n \n \n 194 | \n \n \n - | \n \n \n 7,429 | \n \n \n 6,234 | \n
| \n \n Total assets | \n \n \n 1,116 | \n \n \n 1,150 | \n \n \n 1,374 | \n \n \n 1,075 | \n \n \n 8,556 | \n \n \n 7,121 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Current financial liabilities excluding trade payables and other provisions | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Other current liabilities | \n \n \n 53 | \n \n \n 64 | \n \n \n 350 | \n \n \n \n \n (149) \n | \n \n \n 452 | \n \n \n 643 | \n
| \n \n Total current liabilities | \n \n \n 53 | \n \n \n 64 | \n \n \n 350 | \n \n \n \n \n (149) \n | \n \n \n 456 | \n \n \n 643 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Non-current financial liabilities excluding trade payables and other provisions | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n 64 | \n
| \n \n Other non-current liabilities | \n \n \n 406 | \n \n \n 403 | \n \n \n 38 | \n \n \n 414 | \n \n \n 6,874 | \n \n \n 5,257 | \n
| \n \n Total non-current financial liabilities | \n \n \n 406 | \n \n \n 403 | \n \n \n 38 | \n \n \n 414 | \n \n \n 6,941 | \n \n \n 5,321 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total liabilities | \n \n \n 459 | \n \n \n 467 | \n \n \n 388 | \n \n \n 265 | \n \n \n 7,397 | \n \n \n 5,964 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net assets | \n \n \n 657 | \n \n \n 683 | \n \n \n 985 | \n \n \n 810 | \n \n \n 1,159 | \n \n \n 1,157 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Summarized statement of comprehensive income | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revenue | \n \n \n 340 | \n \n \n 482 | \n \n \n 415 | \n \n \n 478 | \n \n \n 2,662 | \n \n \n 2,586 | \n
| \n \n Depreciation and amortization | \n \n \n \n \n (34) \n | \n \n \n \n \n (32) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (27) \n | \n
| \n \n Interest income | \n \n \n 6 | \n \n \n 4 | \n \n \n 18 | \n \n \n 10 | \n \n \n 128 | \n \n \n 117 | \n
| \n \n Interest expense | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n \n \n (10) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Profit or loss | \n \n \n 95 | \n \n \n 97 | \n \n \n 280 | \n \n \n 193 | \n \n \n 272 | \n \n \n 259 | \n
| \n \n Income tax (expense) or income | \n \n \n \n \n (21) \n | \n \n \n \n \n (24) \n | \n \n \n \n \n (78) \n | \n \n \n \n \n (53) \n | \n \n \n \n \n (80) \n | \n \n \n \n \n (88) \n | \n
| \n \n \n \n Post-tax profit or (loss) \n | \n \n \n 74 | \n \n \n 73 | \n \n \n 202 | \n \n \n 140 | \n \n \n 192 | \n \n \n 170 | \n
| \n \n Other comprehensive income | \n \n \n 4 | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n \n \n (134) \n | \n \n \n 32 | \n
| \n \n Total comprehensive income | \n \n \n 78 | \n \n \n 82 | \n \n \n 202 | \n \n \n 140 | \n \n \n 58 | \n \n \n 203 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 53 | \n \n \n 58 | \n \n \n 29 | \n \n \n 122 | \n \n \n 59 | \n \n \n 211 | \n
An overview of the summarized financial information of the carrying amount of the joint ventures is as follows:
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net assets of joint venture as presented above | \n \n \n 657 | \n \n \n 683 | \n \n \n 985 | \n \n \n 810 | \n \n \n 1,159 | \n \n \n 1,157 | \n
| \n \n Net assets of joint venture excluding goodwill | \n \n \n 577 | \n \n \n 603 | \n \n \n 985 | \n \n \n 809 | \n \n \n 1,040 | \n \n \n 1,030 | \n
| \n \n Group share of net assets of joint venture, excluding goodwill | \n \n \n 294 | \n \n \n 308 | \n \n \n 483 | \n \n \n 397 | \n \n \n 526 | \n \n \n 518 | \n
| \n \n Goodwill on acquisition | \n \n \n 80 | \n \n \n 80 | \n \n \n 1 | \n \n \n 1 | \n \n \n 120 | \n \n \n 128 | \n
| \n \n Carrying amount | \n \n \n 374 | \n \n \n 387 | \n \n \n 483 | \n \n \n 397 | \n \n \n 646 | \n \n \n 646 | \n
Aegon\u2019s group share of net assets of joint ventures, as presented in the table above, is less than Aegon\u2019s share of the net\u00a0assets as presented in the summarized financial information on a 100% basis, due to the inclusion of third parties in\u00a0the\u00a0joint\u00a0ventures.
The following table includes the summarized financial information of the joint ventures based on the Group\u2019s relative holding.
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Post-tax profit or loss | \n \n \n 38 | \n \n \n 37 | \n \n \n 99 | \n \n \n 69 | \n \n \n 101 | \n \n \n 90 | \n
| \n \n Other comprehensive income | \n \n \n 2 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n \n \n (67) \n | \n \n \n 17 | \n
| \n \n Total comprehensive income | \n \n \n 40 | \n \n \n 42 | \n \n \n 99 | \n \n \n 69 | \n \n \n 35 | \n \n \n 107 | \n
The principal joint ventures are listed by geographical segment. The voting powers in these joint ventures is equal to\u00a0the\u00a0shareholdings, unless stated otherwise.
\nSantander Generales Seguros y Reaseguros, S.A., Madrid (Spain)\u00a0(51%)
Santander Vida Seguros y Reaseguros, S.A., Madrid (Spain)\u00a0(51%)\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Aegon Santander Portugal N\u00e3o Vida \u2013 Companhia de Seguros S.A., Lisbon (Portugal)\u00a0(51%)
Aegon Santander Portugal Vida \u2013 Companhia de Seguros de Vida S.A., Lisbon (Portugal)\u00a0(51%)
Aegon THTF Life Insurance Co., Ltd., Shanghai (China) (50%)
Mongeral Aegon, Seguros e Previdencia S.A., Rio de Janeiro (Brazil)\u00a0(59.2%, where Aegon has 50% voting rights)\u200b\u200b\u200b\u200b
Sicoob Seguradode de Vida e Previd\u00eancia S.A., Rio de Janeiro (Brazil) (29.6%)
Aegon Industrial Fund Management Co., Ltd., Shanghai (China)\u00a0(49%)
See note 21 Investments in joint ventures and associates for further details on these investments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f12504m5899p": { "value": "\n| \n | \n\n \n Joint ventures | \n \n \n Associates | \n ||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 1,430 | \n \n \n 1,430 | \n \n \n 2,906 | \n \n \n 165 | \n
| \n \n Additions | \n \n \n 1 | \n \n \n 49 | \n \n \n - | \n \n \n 2,765 | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (34) \n | \n \n \n \n \n (12) \n | \n
| \n \n Share in net income | \n \n \n 238 | \n \n \n 196 | \n \n \n 345 | \n \n \n 103 | \n
| \n \n \n \n Share in changes in equity (note 25.6) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (2) \n | \n \n \n 85 | \n \n \n \n \n (9) \n | \n
| \n \n Impairment losses | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (25) \n | \n
| \n \n Dividend | \n \n \n \n \n (141) \n | \n \n \n \n \n (211) \n | \n \n \n \n \n (199) \n | \n \n \n \n \n (81) \n | \n
| \n \n Net exchange difference | \n \n \n 1 | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n 19 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 1,503 | \n \n \n 1,430 | \n \n \n 3,122 | \n \n \n 2,906 | \n
In 2024, the disposal of associates includes Aegon's participation in the a.s.r. share buyback program, amounting to EUR\u00a029\u00a0million, to keep its stake in the company below 30%. Additionally, Aegon sold its stake in the associate in India, amounting to EUR 5 million (refer to note\u00a042 Companies and businesses acquired and divested). Other reflects fair value movements of associates held at fair value through profit or loss.
\nThe following tables reflect the condensed statement of financial position and income statement of Aegon's material associate a.s.r. at 100%. a.s.r. is a listed company in the Netherlands in which Aegon holds a stake of 29.95% as per December\u00a031, 2024.\u00a0\u00a0The income statement includes the a.s.r. results for the period from July 4, 2023, to December 31, 2024.
| \n | \n\n \n a.s.r. | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of financial position | \n \n | \n\n | \n
| \n \n Investments | \n \n \n 80,484 | \n \n \n 92,177 | \n
| \n \n Derivatives | \n \n \n 11,767 | \n \n \n 12,907 | \n
| \n \n Other assets | \n \n \n 46,457 | \n \n \n 45,673 | \n
| \n \n Total assets | \n \n \n 138,709 | \n \n \n 150,758 | \n
| \n | \n\n | \n\n | \n
| \n \n Insurance liabilities | \n \n \n 102,723 | \n \n \n 99,475 | \n
| \n \n Borrowings and subordinated liabilities | \n \n \n 5,140 | \n \n \n 8,386 | \n
| \n \n Derivatives | \n \n \n 8,666 | \n \n \n 10,132 | \n
| \n \n Other liabilities | \n \n \n 12,293 | \n \n \n 23,467 | \n
| \n \n Total liabilities | \n \n \n 128,822 | \n \n \n 141,460 | \n
| \n \n Non-controlling interest | \n \n \n 47 | \n \n \n 35 | \n
| \n \n Other equity instruments | \n \n \n 977 | \n \n \n 974 | \n
| \n \n Total other equity components | \n \n \n 1,024 | \n \n \n 1,008 | \n
| \n \n Net assets | \n \n \n 8,863 | \n \n \n 8,289 | \n
| \n | \n\n \n a.s.r. | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of comprehensive income | \n \n | \n\n | \n
| \n \n Insurance revenues | \n \n \n 9,601 | \n \n \n 4,944 | \n
| \n \n Insurance service result | \n \n \n 772 | \n \n \n 274 | \n
| \n | \n\n | \n\n | \n
| \n \n Profit or loss from continuing operations | \n \n \n 1,418 | \n \n \n 450 | \n
| \n \n Income tax expense or income | \n \n \n \n \n (375) \n | \n \n \n \n \n (103) \n | \n
| \n \n Post-tax profit or loss from continuing operations | \n \n \n 1,043 | \n \n \n 347 | \n
| \n | \n\n | \n\n | \n
| \n \n Post-tax profit or loss from discontinued operations | \n \n \n 35 | \n \n \n - | \n
| \n \n Other comprehensive income - that may be recycled to profit or loss | \n \n \n - | \n \n \n 17 | \n
| \n \n Other comprehensive income - that will not be recycled to profit or loss | \n \n \n 283 | \n \n \n \n \n (58) \n | \n
| \n \n Total comprehensive income | \n \n \n 1,361 | \n \n \n 306 | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 188 | \n \n \n 68 | \n
| \n | \n\n | \n\n | \n
| \n \n Group share | \n \n \n 29.95% | \n \n \n 29.98% | \n
| \n \n Group share of post-tax profit or loss | \n \n \n 325 | \n \n \n 110 | \n
| \n \n Group share of other comprehensive income | \n \n \n 85 | \n \n \n \n \n (12) \n | \n
| \n | \n\n \n a.s.r. | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Net assets of a.s.r. as presented above | \n \n \n 8,863 | \n \n \n 8,289 | \n
| \n \n Net assets of a.s.r., excluding goodwill, fair value adjustments and other equity transactions | \n \n \n 8,827 | \n \n \n 8,180 | \n
| \n | \n\n | \n\n | \n
| \n \n Group share of net assets of a.s.r., excluding goodwill, fair value adjustments and other equity transactions | \n \n \n 2,644 | \n \n \n 2,453 | \n
| \n \n Fair value adjustments | \n \n \n 50 | \n \n \n 47 | \n
| \n \n Goodwill on acquisition | \n \n \n 117 | \n \n \n 117 | \n
| \n \n Carrying amount of investment in a.s.r. | \n \n \n 2,811 | \n \n \n 2,618 | \n
The fair value of the investment in a.s.r. has been determined based on the quoted price of the listed shares and the shares held on the reporting date.\u00a0The fair value of Aegon's stake in a.s.r. is EUR 2.864 million (2023: EUR 2.588 million).
The following table include associates that Aegon considered immaterial.
| \n | \n\n \n Other Associates | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of financial position | \n \n | \n\n | \n
| \n \n Current assets | \n \n \n 501 | \n \n \n 309 | \n
| \n \n Non-current assets | \n \n \n 732 | \n \n \n 725 | \n
| \n \n Total assets | \n \n \n 1,233 | \n \n \n 1,034 | \n
| \n | \n\n | \n\n | \n
| \n \n Current liabilities | \n \n \n 343 | \n \n \n 217 | \n
| \n \n Non-current liabilities | \n \n \n 25 | \n \n \n 17 | \n
| \n \n Total current liabilities | \n \n \n 369 | \n \n \n 235 | \n
| \n | \n\n | \n\n | \n
| \n \n Net assets | \n \n \n 864 | \n \n \n 799 | \n
| \n | \n\n | \n\n | \n
| \n \n Summarized statement of comprehensive income | \n \n | \n\n | \n
| \n \n \n \n Post-tax profit or (loss) \n | \n \n \n 147 | \n \n \n \n \n (7) \n | \n
| \n \n Other comprehensive income | \n \n \n - | \n \n \n 6 | \n
| \n \n Total comprehensive income | \n \n \n 147 | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 11 | \n \n \n 11 | \n
| \n | \n\n | \n\n | \n
| \n \n Carrying amount | \n \n \n 311 | \n \n \n 288 | \n
The principal investments in associates are listed by geographical segment.\u00a0The voting powers in these associates is equal to the shareholdings, unless stated otherwise.
\nASR Nederland N.V., Utrecht (29.95%)
Pursuant to the relationship agreement entered into with a.s.r. for a period of five years post closing (July 1, 2023), Aegon has an exclusive right to nominate up to two members of the Supervisory Board (if Aegon holds more than 20% of the shares it may nominate two members of which one qualifies as Independent Nominee and the other as Non-independent Nominee; if it holds 20% or less but more than 10% of the shares it may nominate one member who qualifies as Non-independent Nominee). In addition, Aegon has the\u00a0right to designate its nominees for the Audit and Risk Committee and the ESG Committee if certain conditions are met. Furthermore, in the event that the incumbent CEO of a.s.r. does not serve the full term due to earlier resignation or dismissal, the\u00a0appointment of the successor requires the unanimous vote of all Supervisory Directors in office.
For as long as Aegon holds more than 20% of the shares, the affirmative vote of the non-independent Aegon nominee is\u00a0required for:
significant changes to dividend policy (as per current stated a.s.r. policies);
certain dilutive transactions (issuance of equity or debt instruments); and
M&A transactions (acquisitions and divestments, joint ventures, and long-term co-operations) with a value exceeding
EUR\u00a0500\u00a0million.
Furthermore, for as long as Aegon holds more than 20% of the shares, the below needs the unanimous vote of all Supervisory Directors in office and the affirmative vote of the non-independent Aegon nominee:
material decisions on capital management, material reinsurance, and capital allocation / distribution, in each case to the extent this would result in a material change to the characteristics of the risk profile of (the enterprise of) a.s.r. and other than in the ordinary course of business.
Except for significant changes to the dividend policy, the same applies when Aegon holds 20% or less but more than 10% of\u00a0the shares.\u00a0If Aegon holds less than 10%, the relationship agreement from which the abovementioned rights derive is automatically terminated.\u00a0
\nLa Banque Postale Asset Management, Paris (France)\u00a0(25%)
See note\u00a021 Investments in joint ventures and associates for further details on these investments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5720m3782p": { "value": "\n| \n | \n\n \n Joint ventures | \n \n \n Associates | \n ||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 1,430 | \n \n \n 1,430 | \n \n \n 2,906 | \n \n \n 165 | \n
| \n \n Additions | \n \n \n 1 | \n \n \n 49 | \n \n \n - | \n \n \n 2,765 | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (34) \n | \n \n \n \n \n (12) \n | \n
| \n \n Share in net income | \n \n \n 238 | \n \n \n 196 | \n \n \n 345 | \n \n \n 103 | \n
| \n \n \n \n Share in changes in equity (note 25.6) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (2) \n | \n \n \n 85 | \n \n \n \n \n (9) \n | \n
| \n \n Impairment losses | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (25) \n | \n
| \n \n Dividend | \n \n \n \n \n (141) \n | \n \n \n \n \n (211) \n | \n \n \n \n \n (199) \n | \n \n \n \n \n (81) \n | \n
| \n \n Net exchange difference | \n \n \n 1 | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n 19 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 1,503 | \n \n \n 1,430 | \n \n \n 3,122 | \n \n \n 2,906 | \n
In 2024, the disposal of associates includes Aegon's participation in the a.s.r. share buyback program, amounting to EUR\u00a029\u00a0million, to keep its stake in the company below 30%. Additionally, Aegon sold its stake in the associate in India, amounting to EUR 5 million (refer to note\u00a042 Companies and businesses acquired and divested). Other reflects fair value movements of associates held at fair value through profit or loss.
The joint ventures and associates are accounted for using the equity method and are considered to be non-current.\u00a0The\u00a0investments in joint ventures and associates include interest in insurance companies that are required to maintain a minimum solvency margin based on local directives. Such restrictions can affect the ability of these joint ventures and associates to\u00a0transfer funds in the form of cash dividends, or repayment of loans or advances, and therefore, there can be no assurance that\u00a0these restrictions will not become a limitation in the future. See note 39 Commitments and contingencies for any commitments and contingencies related to investments in joint ventures. There are no unrecognized shares of losses in joint ventures and associates. The financial statements of the principal joint ventures and associates have the same reporting date as the Group. See note\u00a043 Group companies for a listing of the investments in joint ventures and associates and the Group\u2019s percentage holding.
Joint ventures include our joint operation in China operating under the name Aegon THTF Life Insurance Co. Other than disclosed in note 29.3 Critical judgments and estimates, for the valuation of the insurance liabilities of our joint venture in\u00a0China the risk-free yield curve is based on government bond yields and is constructed using a market-observed curve up to\u00a0a\u00a0last liquid point (20 years) and then extrapolating in 20 years to an ultimate spot rate. The ultimate spot rate used for discounting liability cash flows aligns with local market practice in China and amounts to 4.2% on December 31, 2024 (2023: 4.5%) excluding an illiquidity premium (ILP) of 30 bps (2023: 45 bps) for the first 20 years and 20 bps thereafter (2023: 0).
\nThe summarized financial information presented in the following table presents the joint ventures on a 100% basis. Aegon\u00a0considers its investments in Santander Vida Seguros y Reaseguros S.A. (Santander Spain Life) and Aegon Industrial Fund Management Co.Ltd. (AIFMC) as\u00a0material joint ventures and are therefore presented separately.
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of financial position | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash and cash equivalents | \n \n \n 30 | \n \n \n 18 | \n \n \n 436 | \n \n \n 421 | \n \n \n 72 | \n \n \n 47 | \n
| \n \n Other current assets | \n \n \n 63 | \n \n \n 76 | \n \n \n 744 | \n \n \n 654 | \n \n \n 1,055 | \n \n \n 840 | \n
| \n \n Total current assets | \n \n \n 93 | \n \n \n 94 | \n \n \n 1,180 | \n \n \n 1,075 | \n \n \n 1,127 | \n \n \n 887 | \n
| \n \n Non-current assets | \n \n \n 1,023 | \n \n \n 1,056 | \n \n \n 194 | \n \n \n - | \n \n \n 7,429 | \n \n \n 6,234 | \n
| \n \n Total assets | \n \n \n 1,116 | \n \n \n 1,150 | \n \n \n 1,374 | \n \n \n 1,075 | \n \n \n 8,556 | \n \n \n 7,121 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Current financial liabilities excluding trade payables and other provisions | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Other current liabilities | \n \n \n 53 | \n \n \n 64 | \n \n \n 350 | \n \n \n \n \n (149) \n | \n \n \n 452 | \n \n \n 643 | \n
| \n \n Total current liabilities | \n \n \n 53 | \n \n \n 64 | \n \n \n 350 | \n \n \n \n \n (149) \n | \n \n \n 456 | \n \n \n 643 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Non-current financial liabilities excluding trade payables and other provisions | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n 64 | \n
| \n \n Other non-current liabilities | \n \n \n 406 | \n \n \n 403 | \n \n \n 38 | \n \n \n 414 | \n \n \n 6,874 | \n \n \n 5,257 | \n
| \n \n Total non-current financial liabilities | \n \n \n 406 | \n \n \n 403 | \n \n \n 38 | \n \n \n 414 | \n \n \n 6,941 | \n \n \n 5,321 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total liabilities | \n \n \n 459 | \n \n \n 467 | \n \n \n 388 | \n \n \n 265 | \n \n \n 7,397 | \n \n \n 5,964 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net assets | \n \n \n 657 | \n \n \n 683 | \n \n \n 985 | \n \n \n 810 | \n \n \n 1,159 | \n \n \n 1,157 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Summarized statement of comprehensive income | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revenue | \n \n \n 340 | \n \n \n 482 | \n \n \n 415 | \n \n \n 478 | \n \n \n 2,662 | \n \n \n 2,586 | \n
| \n \n Depreciation and amortization | \n \n \n \n \n (34) \n | \n \n \n \n \n (32) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (27) \n | \n
| \n \n Interest income | \n \n \n 6 | \n \n \n 4 | \n \n \n 18 | \n \n \n 10 | \n \n \n 128 | \n \n \n 117 | \n
| \n \n Interest expense | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n \n \n (10) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Profit or loss | \n \n \n 95 | \n \n \n 97 | \n \n \n 280 | \n \n \n 193 | \n \n \n 272 | \n \n \n 259 | \n
| \n \n Income tax (expense) or income | \n \n \n \n \n (21) \n | \n \n \n \n \n (24) \n | \n \n \n \n \n (78) \n | \n \n \n \n \n (53) \n | \n \n \n \n \n (80) \n | \n \n \n \n \n (88) \n | \n
| \n \n \n \n Post-tax profit or (loss) \n | \n \n \n 74 | \n \n \n 73 | \n \n \n 202 | \n \n \n 140 | \n \n \n 192 | \n \n \n 170 | \n
| \n \n Other comprehensive income | \n \n \n 4 | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n \n \n (134) \n | \n \n \n 32 | \n
| \n \n Total comprehensive income | \n \n \n 78 | \n \n \n 82 | \n \n \n 202 | \n \n \n 140 | \n \n \n 58 | \n \n \n 203 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 53 | \n \n \n 58 | \n \n \n 29 | \n \n \n 122 | \n \n \n 59 | \n \n \n 211 | \n
An overview of the summarized financial information of the carrying amount of the joint ventures is as follows:
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net assets of joint venture as presented above | \n \n \n 657 | \n \n \n 683 | \n \n \n 985 | \n \n \n 810 | \n \n \n 1,159 | \n \n \n 1,157 | \n
| \n \n Net assets of joint venture excluding goodwill | \n \n \n 577 | \n \n \n 603 | \n \n \n 985 | \n \n \n 809 | \n \n \n 1,040 | \n \n \n 1,030 | \n
| \n \n Group share of net assets of joint venture, excluding goodwill | \n \n \n 294 | \n \n \n 308 | \n \n \n 483 | \n \n \n 397 | \n \n \n 526 | \n \n \n 518 | \n
| \n \n Goodwill on acquisition | \n \n \n 80 | \n \n \n 80 | \n \n \n 1 | \n \n \n 1 | \n \n \n 120 | \n \n \n 128 | \n
| \n \n Carrying amount | \n \n \n 374 | \n \n \n 387 | \n \n \n 483 | \n \n \n 397 | \n \n \n 646 | \n \n \n 646 | \n
Aegon\u2019s group share of net assets of joint ventures, as presented in the table above, is less than Aegon\u2019s share of the net\u00a0assets as presented in the summarized financial information on a 100% basis, due to the inclusion of third parties in\u00a0the\u00a0joint\u00a0ventures.
The following table includes the summarized financial information of the joint ventures based on the Group\u2019s relative holding.
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Post-tax profit or loss | \n \n \n 38 | \n \n \n 37 | \n \n \n 99 | \n \n \n 69 | \n \n \n 101 | \n \n \n 90 | \n
| \n \n Other comprehensive income | \n \n \n 2 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n \n \n (67) \n | \n \n \n 17 | \n
| \n \n Total comprehensive income | \n \n \n 40 | \n \n \n 42 | \n \n \n 99 | \n \n \n 69 | \n \n \n 35 | \n \n \n 107 | \n
The following tables reflect the condensed statement of financial position and income statement of Aegon's material associate a.s.r. at 100%. a.s.r. is a listed company in the Netherlands in which Aegon holds a stake of 29.95% as per December\u00a031, 2024.\u00a0\u00a0The income statement includes the a.s.r. results for the period from July 4, 2023, to December 31, 2024.
| \n | \n\n \n a.s.r. | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of financial position | \n \n | \n\n | \n
| \n \n Investments | \n \n \n 80,484 | \n \n \n 92,177 | \n
| \n \n Derivatives | \n \n \n 11,767 | \n \n \n 12,907 | \n
| \n \n Other assets | \n \n \n 46,457 | \n \n \n 45,673 | \n
| \n \n Total assets | \n \n \n 138,709 | \n \n \n 150,758 | \n
| \n | \n\n | \n\n | \n
| \n \n Insurance liabilities | \n \n \n 102,723 | \n \n \n 99,475 | \n
| \n \n Borrowings and subordinated liabilities | \n \n \n 5,140 | \n \n \n 8,386 | \n
| \n \n Derivatives | \n \n \n 8,666 | \n \n \n 10,132 | \n
| \n \n Other liabilities | \n \n \n 12,293 | \n \n \n 23,467 | \n
| \n \n Total liabilities | \n \n \n 128,822 | \n \n \n 141,460 | \n
| \n \n Non-controlling interest | \n \n \n 47 | \n \n \n 35 | \n
| \n \n Other equity instruments | \n \n \n 977 | \n \n \n 974 | \n
| \n \n Total other equity components | \n \n \n 1,024 | \n \n \n 1,008 | \n
| \n \n Net assets | \n \n \n 8,863 | \n \n \n 8,289 | \n
| \n | \n\n \n a.s.r. | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of comprehensive income | \n \n | \n\n | \n
| \n \n Insurance revenues | \n \n \n 9,601 | \n \n \n 4,944 | \n
| \n \n Insurance service result | \n \n \n 772 | \n \n \n 274 | \n
| \n | \n\n | \n\n | \n
| \n \n Profit or loss from continuing operations | \n \n \n 1,418 | \n \n \n 450 | \n
| \n \n Income tax expense or income | \n \n \n \n \n (375) \n | \n \n \n \n \n (103) \n | \n
| \n \n Post-tax profit or loss from continuing operations | \n \n \n 1,043 | \n \n \n 347 | \n
| \n | \n\n | \n\n | \n
| \n \n Post-tax profit or loss from discontinued operations | \n \n \n 35 | \n \n \n - | \n
| \n \n Other comprehensive income - that may be recycled to profit or loss | \n \n \n - | \n \n \n 17 | \n
| \n \n Other comprehensive income - that will not be recycled to profit or loss | \n \n \n 283 | \n \n \n \n \n (58) \n | \n
| \n \n Total comprehensive income | \n \n \n 1,361 | \n \n \n 306 | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 188 | \n \n \n 68 | \n
| \n | \n\n | \n\n | \n
| \n \n Group share | \n \n \n 29.95% | \n \n \n 29.98% | \n
| \n \n Group share of post-tax profit or loss | \n \n \n 325 | \n \n \n 110 | \n
| \n \n Group share of other comprehensive income | \n \n \n 85 | \n \n \n \n \n (12) \n | \n
| \n | \n\n \n a.s.r. | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Net assets of a.s.r. as presented above | \n \n \n 8,863 | \n \n \n 8,289 | \n
| \n \n Net assets of a.s.r., excluding goodwill, fair value adjustments and other equity transactions | \n \n \n 8,827 | \n \n \n 8,180 | \n
| \n | \n\n | \n\n | \n
| \n \n Group share of net assets of a.s.r., excluding goodwill, fair value adjustments and other equity transactions | \n \n \n 2,644 | \n \n \n 2,453 | \n
| \n \n Fair value adjustments | \n \n \n 50 | \n \n \n 47 | \n
| \n \n Goodwill on acquisition | \n \n \n 117 | \n \n \n 117 | \n
| \n \n Carrying amount of investment in a.s.r. | \n \n \n 2,811 | \n \n \n 2,618 | \n
The fair value of the investment in a.s.r. has been determined based on the quoted price of the listed shares and the shares held on the reporting date.\u00a0The fair value of Aegon's stake in a.s.r. is EUR 2.864 million (2023: EUR 2.588 million).
The following table include associates that Aegon considered immaterial.
| \n | \n\n \n Other Associates | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Summarized statement of financial position | \n \n | \n\n | \n
| \n \n Current assets | \n \n \n 501 | \n \n \n 309 | \n
| \n \n Non-current assets | \n \n \n 732 | \n \n \n 725 | \n
| \n \n Total assets | \n \n \n 1,233 | \n \n \n 1,034 | \n
| \n | \n\n | \n\n | \n
| \n \n Current liabilities | \n \n \n 343 | \n \n \n 217 | \n
| \n \n Non-current liabilities | \n \n \n 25 | \n \n \n 17 | \n
| \n \n Total current liabilities | \n \n \n 369 | \n \n \n 235 | \n
| \n | \n\n | \n\n | \n
| \n \n Net assets | \n \n \n 864 | \n \n \n 799 | \n
| \n | \n\n | \n\n | \n
| \n \n Summarized statement of comprehensive income | \n \n | \n\n | \n
| \n \n \n \n Post-tax profit or (loss) \n | \n \n \n 147 | \n \n \n \n \n (7) \n | \n
| \n \n Other comprehensive income | \n \n \n - | \n \n \n 6 | \n
| \n \n Total comprehensive income | \n \n \n 147 | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 11 | \n \n \n 11 | \n
| \n | \n\n | \n\n | \n
| \n \n Carrying amount | \n \n \n 311 | \n \n \n 288 | \n
The principal joint ventures are listed by geographical segment. The voting powers in these joint ventures is equal to\u00a0the\u00a0shareholdings, unless stated otherwise.
\nSantander Generales Seguros y Reaseguros, S.A., Madrid (Spain)\u00a0(51%)
Santander Vida Seguros y Reaseguros, S.A., Madrid (Spain)\u00a0(51%)\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Aegon Santander Portugal N\u00e3o Vida \u2013 Companhia de Seguros S.A., Lisbon (Portugal)\u00a0(51%)
Aegon Santander Portugal Vida \u2013 Companhia de Seguros de Vida S.A., Lisbon (Portugal)\u00a0(51%)
Aegon THTF Life Insurance Co., Ltd., Shanghai (China) (50%)
Mongeral Aegon, Seguros e Previdencia S.A., Rio de Janeiro (Brazil)\u00a0(59.2%, where Aegon has 50% voting rights)\u200b\u200b\u200b\u200b
Sicoob Seguradode de Vida e Previd\u00eancia S.A., Rio de Janeiro (Brazil) (29.6%)
Aegon Industrial Fund Management Co., Ltd., Shanghai (China)\u00a0(49%)
See note 21 Investments in joint ventures and associates for further details on these investments.
\nThe principal investments in associates are listed by geographical segment.\u00a0The voting powers in these associates is equal to the shareholdings, unless stated otherwise.
\nASR Nederland N.V., Utrecht (29.95%)
Pursuant to the relationship agreement entered into with a.s.r. for a period of five years post closing (July 1, 2023), Aegon has an exclusive right to nominate up to two members of the Supervisory Board (if Aegon holds more than 20% of the shares it may nominate two members of which one qualifies as Independent Nominee and the other as Non-independent Nominee; if it holds 20% or less but more than 10% of the shares it may nominate one member who qualifies as Non-independent Nominee). In addition, Aegon has the\u00a0right to designate its nominees for the Audit and Risk Committee and the ESG Committee if certain conditions are met. Furthermore, in the event that the incumbent CEO of a.s.r. does not serve the full term due to earlier resignation or dismissal, the\u00a0appointment of the successor requires the unanimous vote of all Supervisory Directors in office.
For as long as Aegon holds more than 20% of the shares, the affirmative vote of the non-independent Aegon nominee is\u00a0required for:
significant changes to dividend policy (as per current stated a.s.r. policies);
certain dilutive transactions (issuance of equity or debt instruments); and
M&A transactions (acquisitions and divestments, joint ventures, and long-term co-operations) with a value exceeding
EUR\u00a0500\u00a0million.
Furthermore, for as long as Aegon holds more than 20% of the shares, the below needs the unanimous vote of all Supervisory Directors in office and the affirmative vote of the non-independent Aegon nominee:
material decisions on capital management, material reinsurance, and capital allocation / distribution, in each case to the extent this would result in a material change to the characteristics of the risk profile of (the enterprise of) a.s.r. and other than in the ordinary course of business.
Except for significant changes to the dividend policy, the same applies when Aegon holds 20% or less but more than 10% of\u00a0the shares.\u00a0If Aegon holds less than 10%, the relationship agreement from which the abovementioned rights derive is automatically terminated.\u00a0
\nLa Banque Postale Asset Management, Paris (France)\u00a0(25%)
See note\u00a021 Investments in joint ventures and associates for further details on these investments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f9884m2726p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Deferred transaction costs for investment management services | \n \n \n 490 | \n \n \n 447 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 22 | \n \n \n 20 | \n
| \n \n Non-current | \n \n \n 468 | \n \n \n 427 | \n
| \n | \n\n \n Deferred transaction costs | \n
| \n \n On January 1, 2024 | \n \n \n 447 | \n
| \n \n Costs deferred during the year | \n \n \n 35 | \n
| \n \n Amortization through income statement | \n \n \n \n \n (22) \n | \n
| \n \n Net exchange differences | \n \n \n 30 | \n
| \n \n On December 31, 2024 | \n \n \n 490 | \n
| \n \n On January 1, 2023 | \n \n \n 452 | \n
| \n \n Costs deferred during the year | \n \n \n 29 | \n
| \n \n Amortization through income statement | \n \n \n \n \n (21) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (14) \n | \n
| \n \n On December 31, 2023 | \n \n \n 447 | \n
| \n \n Total real estate held for own use and equipment | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Real estate held for own use | \n \n \n 66 | \n \n \n 64 | \n
| \n \n Equipment | \n \n \n 170 | \n \n \n 194 | \n
| \n \n On December 31 | \n \n \n 236 | \n \n \n 258 | \n
| \n \n Real estate held for own use | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net book value | \n \n | \n\n | \n
| \n \n On January 1 | \n \n \n 64 | \n \n \n 73 | \n
| \n \n Capitalized subsequent expenditure | \n \n \n 2 | \n \n \n 1 | \n
| \n \n Disposals | \n \n \n \n \n (1) \n | \n \n \n - | \n
| \n \n Unrealized gains/(losses) through equity | \n \n \n \n \n (1) \n | \n \n \n \n \n (2) \n | \n
| \n \n Depreciation through income statement | \n \n \n \n \n (1) \n | \n \n \n \n \n (2) \n | \n
| \n \n Impairment losses | \n \n \n \n \n (1) \n | \n \n \n \n \n (3) \n | \n
| \n \n Net exchange differences | \n \n \n 4 | \n \n \n \n \n (2) \n | \n
| \n \n On December 31 | \n \n \n 66 | \n \n \n 64 | \n
| \n | \n\n | \n\n | \n
| \n \n Gross carrying value | \n \n \n 91 | \n \n \n 87 | \n
| \n \n Accumulated depreciation and impairments | \n \n \n \n \n (25) \n | \n \n \n \n \n (23) \n | \n
| \n \n Net book value on December 31 | \n \n \n 66 | \n \n \n 64 | \n
| \n | \n\n | \n\n | \n
| \n \n Real estate held for own use: | \n \n | \n\n | \n
| \n \n Carrying amount under a historical cost model | \n \n \n 75 | \n \n \n 70 | \n
| \n \n % of real estate appraised in the current year | \n \n \n 16% | \n \n \n 76% | \n
| \n \n % of appraisals performed by independent external appraisers | \n \n \n 100% | \n \n \n 100% | \n
General account real estate held for own use has not been pledged as security for liabilities, nor are there any restrictions on\u00a0title. Depreciation expenses are recorded in note\u00a013 Other operating expenses\u00a0in the income statement. The useful lives of\u00a0buildings range between 40 and 50 years.
| \n \n Equipment | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net book value | \n \n | \n\n | \n
| \n \n On January 1 | \n \n \n 194 | \n \n \n 251 | \n
| \n \n Additions | \n \n \n 50 | \n \n \n 62 | \n
| \n \n Disposals | \n \n \n \n \n (19) \n | \n \n \n \n \n (47) \n | \n
| \n \n Depreciation through income statement | \n \n \n \n \n (64) \n | \n \n \n \n \n (66) \n | \n
| \n \n Net exchange differences | \n \n \n 10 | \n \n \n \n \n (6) \n | \n
| \n \n On December 31 | \n \n \n 170 | \n \n \n 194 | \n
| \n | \n\n | \n\n | \n
| \n \n Gross carrying value | \n \n \n 643 | \n \n \n 602 | \n
| \n \n Accumulated depreciation and impairments | \n \n \n \n \n (473) \n | \n \n \n \n \n (408) \n | \n
| \n \n Net book value on December 31 | \n \n \n 170 | \n \n \n 194 | \n
None of the equipment is held for lease (2023: none). Equipment has not been pledged as security for liabilities, nor are there any restrictions on title. Depreciation expenses have been recorded in note\u00a013 Other operating expenses\u00a0 in the income statement. Equipment is generally depreciated over a period of three to five years.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5637m3762p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Loans to associates | \n \n \n - | \n \n \n 8 | \n
| \n \n Receivables from policyholders | \n \n \n 118 | \n \n \n 137 | \n
| \n \n Receivables from brokers and agents | \n \n \n 270 | \n \n \n 239 | \n
| \n \n Cash outstanding from assets sold | \n \n \n 176 | \n \n \n 133 | \n
| \n \n Trade receivables | \n \n \n 654 | \n \n \n 178 | \n
| \n \n Cash collateral | \n \n \n 515 | \n \n \n 516 | \n
| \n \n Income tax receivable | \n \n \n 286 | \n \n \n 172 | \n
| \n \n Other | \n \n \n 1,828 | \n \n \n 2,194 | \n
| \n \n Expected credit losses | \n \n \n \n \n (18) \n | \n \n \n \n \n (10) \n | \n
| \n \n On December 31 | \n \n \n 3,830 | \n \n \n 3,567 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 3,736 | \n \n \n 3,564 | \n
| \n \n Non-current | \n \n \n 94 | \n \n \n 2 | \n
With the exception of receivables from reinsurers, the receivables balances presented above are mostly not externally rated.
The movements in the expected credit losses for receivables during the year were as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n \n \n (10) \n | \n \n \n \n \n (129) \n | \n
| \n \n Expected credit losses | \n \n \n \n \n (9) \n | \n \n \n \n \n (29) \n | \n
| \n \n Other movements | \n \n \n 1 | \n \n \n 148 | \n
| \n \n On December 31 | \n \n \n \n \n (18) \n | \n \n \n \n \n (10) \n | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Accrued interest | \n \n \n 812 | \n \n \n 736 | \n
| \n \n On December 31 | \n \n \n 812 | \n \n \n 736 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 812 | \n \n \n 736 | \n
| \n | \n\n \n Goodwill | \n \n \n Future servicing rights | \n \n \n Software | \n \n \n Other | \n \n \n Total | \n
| \n \n Net book value | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2024 | \n \n \n 291 | \n \n \n 131 | \n \n \n 48 | \n \n \n 33 | \n \n \n 504 | \n
| \n \n Additions | \n \n \n - | \n \n \n 2 | \n \n \n 12 | \n \n \n 1 | \n \n \n 15 | \n
| \n \n Amortization through income statement | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (30) \n | \n
| \n \n Acquisitions through business combinations | \n \n \n 23 | \n \n \n - | \n \n \n - | \n \n \n 40 | \n \n \n 63 | \n
| \n \n Other movements | \n \n \n 13 | \n \n \n - | \n \n \n - | \n \n \n \n \n (13) \n | \n \n \n - | \n
| \n \n Net exchange differences | \n \n \n 19 | \n \n \n 1 | \n \n \n 1 | \n \n \n 2 | \n \n \n 23 | \n
| \n \n On December 31, 2024 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
| \n \n Gross carrying value | \n \n \n 473 | \n \n \n 311 | \n \n \n 85 | \n \n \n 98 | \n \n \n 967 | \n
| \n \n Accumulated amortization, depreciation and impairment losses | \n \n \n \n \n (128) \n | \n \n \n \n \n (191) \n | \n \n \n \n \n (34) \n | \n \n \n \n \n (40) \n | \n \n \n \n \n (393) \n | \n
| \n \n Net book value 2024 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net book value | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n 316 | \n \n \n 59 | \n \n \n 21 | \n \n \n 25 | \n \n \n 420 | \n
| \n \n Additions | \n \n \n - | \n \n \n 122 | \n \n \n 41 | \n \n \n 3 | \n \n \n 166 | \n
| \n \n Amortization through income statement | \n \n \n - | \n \n \n \n \n (11) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (21) \n | \n
| \n \n Acquisitions through business combinations | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n 10 | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n \n \n (3) \n | \n
| \n \n Disposal of a business | \n \n \n \n \n (18) \n | \n \n \n \n \n (38) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (58) \n | \n
| \n \n Other movements | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (3) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \n
| \n \n On December 31, 2023 | \n \n \n 291 | \n \n \n 131 | \n \n \n 48 | \n \n \n 33 | \n \n \n 504 | \n
| \n \n Gross carrying value | \n \n \n 411 | \n \n \n 298 | \n \n \n 71 | \n \n \n 56 | \n \n \n 835 | \n
| \n \n Accumulated amortization, depreciation and impairment losses | \n \n \n \n \n (120) \n | \n \n \n \n \n (166) \n | \n \n \n \n \n (23) \n | \n \n \n \n \n (23) \n | \n \n \n \n \n (331) \n | \n
| \n \n Net book value 2023 | \n \n \n 291 | \n \n \n 131 | \n \n \n 48 | \n \n \n 33 | \n \n \n 504 | \n
The economic assumptions used in all the calculations are based on observable market data and projections of future trends. All the cash-generating units tested showed that the recoverable amount was higher than their carrying values, including goodwill. A reasonably possible change in any key assumption is not expected to cause the carrying value of the cash-generating units to exceed its recoverable amount.
The goodwill balance has been allocated across the cash-generating units which that are expected to benefit from the synergies inherent in the goodwill. Goodwill is tested for impairment both annually and when there are specific indicators of a potential impairment. The recoverable amount is the higher of the value in use and fair value less costs of disposal for a cash-generating unit. The operating assumptions used in all the calculations are best estimate assumptions and based on historical data where available.
A summary of the cash-generating units to which the goodwill is allocated is as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Americas | \n \n \n 215 | \n \n \n 201 | \n
| \n \n United Kingdom | \n \n \n 81 | \n \n \n 56 | \n
| \n \n Asset Management | \n \n \n 49 | \n \n \n 34 | \n
| \n \n On December 31 | \n \n \n 345 | \n \n \n 291 | \n
Within Americas, Transamerica's goodwill is allocated to groups of cash-generating units, including variable annuities, fixed annuities, and the retirement plans and single premium group annuities (SPGA) cash-generating units. Transamerica uses the value in use concept to determine the recoverable amount and it is calculated annually in the fourth quarter. Transamerica reviewed the recoverable amount of the retirement plans and SPGA cash-generating units under the Economic Available Capital (EAC) approach. This approach measures the difference between the market value of assets assigned to a block of business and the market value of liabilities. The EAC is reflective of market conditions where a pre-tax benchmark discount rate ranged from approximately 4.56% to 3.32% from the one-month to 30-year tenors.\u00a0
Transamerica reviewed the recoverable amount of the annuities cash-generating units under the Contractual Service Margin (CSM) approach. The CSM is a component of the asset or liability for the group of insurance contracts that represents the unearned profit the entity will recognize as it provides services in the future. Based on the value in use tests, Transamerica\u2019s goodwill for the group of annuities cash-generating units (2024: EUR 137 million; 2023: EUR 129 million) remains unchanged from the prior period except for the impact of currency translation adjustments. Transamerica\u2019s goodwill for the retirement plans and SPGA cash-generating units\u00a0 (2024: EUR 77 million; 2023: EUR 72 million) remains unchanged from the prior period except for the impact of currency translation adjustments.
In the United Kingdom, the cash-generating unit for the Cofunds goodwill impairment assessment is Aegon UK. For the new Nationwide (Origen) goodwill the cash-generating unit is the Aegon Investment Holdings Limited Group.\u00a0
For the Cofunds goodwill, the value in use of Scottish Equitable plc is the most material part of the Aegon UK value in use calculation. The value in use of SE plc was determined using SE plc\u2019s Solvency II own funds value with adjustments for contract boundaries, and risk margin.\u00a0 An allowance has also been made for the present value of profits from expected new business in the next four years.\u00a0 A key variable is the present value of profits from expected new business in the next four years, which, if this does not arise would reduce the value in use by EUR 108 million, however there would still be over EUR 1,450 million headroom.
For Nationwide (Origen) goodwill, this relies on the underlying value in use calculation for Aegon Investment Holdings Limited Group\u2019s subsidiary companies (principally Origen Financial Services limited (OFSL), Aegon Investment Solutions Limited (AISL) and Aegon Investments Limited(AIL)). The value in use calculation uses a standard model.\u00a0 The headroom at year end was EUR\u00a0193\u00a0million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f6054m1263p": { "value": "\n| \n | \n\n \n Goodwill | \n \n \n Future servicing rights | \n \n \n Software | \n \n \n Other | \n \n \n Total | \n
| \n \n Net book value | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2024 | \n \n \n 291 | \n \n \n 131 | \n \n \n 48 | \n \n \n 33 | \n \n \n 504 | \n
| \n \n Additions | \n \n \n - | \n \n \n 2 | \n \n \n 12 | \n \n \n 1 | \n \n \n 15 | \n
| \n \n Amortization through income statement | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (30) \n | \n
| \n \n Acquisitions through business combinations | \n \n \n 23 | \n \n \n - | \n \n \n - | \n \n \n 40 | \n \n \n 63 | \n
| \n \n Other movements | \n \n \n 13 | \n \n \n - | \n \n \n - | \n \n \n \n \n (13) \n | \n \n \n - | \n
| \n \n Net exchange differences | \n \n \n 19 | \n \n \n 1 | \n \n \n 1 | \n \n \n 2 | \n \n \n 23 | \n
| \n \n On December 31, 2024 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
| \n \n Gross carrying value | \n \n \n 473 | \n \n \n 311 | \n \n \n 85 | \n \n \n 98 | \n \n \n 967 | \n
| \n \n Accumulated amortization, depreciation and impairment losses | \n \n \n \n \n (128) \n | \n \n \n \n \n (191) \n | \n \n \n \n \n (34) \n | \n \n \n \n \n (40) \n | \n \n \n \n \n (393) \n | \n
| \n \n Net book value 2024 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net book value | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n 316 | \n \n \n 59 | \n \n \n 21 | \n \n \n 25 | \n \n \n 420 | \n
| \n \n Additions | \n \n \n - | \n \n \n 122 | \n \n \n 41 | \n \n \n 3 | \n \n \n 166 | \n
| \n \n Amortization through income statement | \n \n \n - | \n \n \n \n \n (11) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (21) \n | \n
| \n \n Acquisitions through business combinations | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n 10 | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n \n \n (3) \n | \n
| \n \n Disposal of a business | \n \n \n \n \n (18) \n | \n \n \n \n \n (38) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (58) \n | \n
| \n \n Other movements | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (3) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \n
| \n \n On December 31, 2023 | \n \n \n 291 | \n \n \n 131 | \n \n \n 48 | \n \n \n 33 | \n \n \n 504 | \n
| \n \n Gross carrying value | \n \n \n 411 | \n \n \n 298 | \n \n \n 71 | \n \n \n 56 | \n \n \n 835 | \n
| \n \n Accumulated amortization, depreciation and impairment losses | \n \n \n \n \n (120) \n | \n \n \n \n \n (166) \n | \n \n \n \n \n (23) \n | \n \n \n \n \n (23) \n | \n \n \n \n \n (331) \n | \n
| \n \n Net book value 2023 | \n \n \n 291 | \n \n \n 131 | \n \n \n 48 | \n \n \n 33 | \n \n \n 504 | \n
Amortization and depreciation through income statement is included in note\u00a013 Other operating expenses.
None of the intangible assets have titles that are restricted or have been pledged as security for liabilities.
With the exception of goodwill, all intangible assets within Americas have a finite useful life and are amortized accordingly. Future servicing rights are amortized over the term of the related insurance contracts, which can vary significantly depending on the maturity of the acquired portfolio and ranges between 10 to 30 years. As at December 31, 2024 11 years remain (2023: 12 years). Software is generally depreciated over an average period of three to five years (no changes compared to 2023).
\nThe economic assumptions used in all the calculations are based on observable market data and projections of future trends. All the cash-generating units tested showed that the recoverable amount was higher than their carrying values, including goodwill. A reasonably possible change in any key assumption is not expected to cause the carrying value of the cash-generating units to exceed its recoverable amount.
The goodwill balance has been allocated across the cash-generating units which that are expected to benefit from the synergies inherent in the goodwill. Goodwill is tested for impairment both annually and when there are specific indicators of a potential impairment. The recoverable amount is the higher of the value in use and fair value less costs of disposal for a cash-generating unit. The operating assumptions used in all the calculations are best estimate assumptions and based on historical data where available.
A summary of the cash-generating units to which the goodwill is allocated is as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Americas | \n \n \n 215 | \n \n \n 201 | \n
| \n \n United Kingdom | \n \n \n 81 | \n \n \n 56 | \n
| \n \n Asset Management | \n \n \n 49 | \n \n \n 34 | \n
| \n \n On December 31 | \n \n \n 345 | \n \n \n 291 | \n
Within Americas, Transamerica's goodwill is allocated to groups of cash-generating units, including variable annuities, fixed annuities, and the retirement plans and single premium group annuities (SPGA) cash-generating units. Transamerica uses the value in use concept to determine the recoverable amount and it is calculated annually in the fourth quarter. Transamerica reviewed the recoverable amount of the retirement plans and SPGA cash-generating units under the Economic Available Capital (EAC) approach. This approach measures the difference between the market value of assets assigned to a block of business and the market value of liabilities. The EAC is reflective of market conditions where a pre-tax benchmark discount rate ranged from approximately 4.56% to 3.32% from the one-month to 30-year tenors.\u00a0
Transamerica reviewed the recoverable amount of the annuities cash-generating units under the Contractual Service Margin (CSM) approach. The CSM is a component of the asset or liability for the group of insurance contracts that represents the unearned profit the entity will recognize as it provides services in the future. Based on the value in use tests, Transamerica\u2019s goodwill for the group of annuities cash-generating units (2024: EUR 137 million; 2023: EUR 129 million) remains unchanged from the prior period except for the impact of currency translation adjustments. Transamerica\u2019s goodwill for the retirement plans and SPGA cash-generating units\u00a0 (2024: EUR 77 million; 2023: EUR 72 million) remains unchanged from the prior period except for the impact of currency translation adjustments.
In the United Kingdom, the cash-generating unit for the Cofunds goodwill impairment assessment is Aegon UK. For the new Nationwide (Origen) goodwill the cash-generating unit is the Aegon Investment Holdings Limited Group.\u00a0
For the Cofunds goodwill, the value in use of Scottish Equitable plc is the most material part of the Aegon UK value in use calculation. The value in use of SE plc was determined using SE plc\u2019s Solvency II own funds value with adjustments for contract boundaries, and risk margin.\u00a0 An allowance has also been made for the present value of profits from expected new business in the next four years.\u00a0 A key variable is the present value of profits from expected new business in the next four years, which, if this does not arise would reduce the value in use by EUR 108 million, however there would still be over EUR 1,450 million headroom.
For Nationwide (Origen) goodwill, this relies on the underlying value in use calculation for Aegon Investment Holdings Limited Group\u2019s subsidiary companies (principally Origen Financial Services limited (OFSL), Aegon Investment Solutions Limited (AISL) and Aegon Investments Limited(AIL)). The value in use calculation uses a standard model.\u00a0 The headroom at year end was EUR\u00a0193\u00a0million.
\nReflects mainly Aegon Asset Management mandates added in 2023. These rights have a remaining amortization period of 8.5 years and a carrying amount of EUR 104 million on December 31, 2024 (2023: EUR 116 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f6061m1262p": { "value": "\n| \n | \n\n \n Goodwill | \n \n \n Future servicing rights | \n \n \n Software | \n \n \n Other | \n \n \n Total | \n
| \n \n Net book value | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2024 | \n \n \n 291 | \n \n \n 131 | \n \n \n 48 | \n \n \n 33 | \n \n \n 504 | \n
| \n \n Additions | \n \n \n - | \n \n \n 2 | \n \n \n 12 | \n \n \n 1 | \n \n \n 15 | \n
| \n \n Amortization through income statement | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (30) \n | \n
| \n \n Acquisitions through business combinations | \n \n \n 23 | \n \n \n - | \n \n \n - | \n \n \n 40 | \n \n \n 63 | \n
| \n \n Other movements | \n \n \n 13 | \n \n \n - | \n \n \n - | \n \n \n \n \n (13) \n | \n \n \n - | \n
| \n \n Net exchange differences | \n \n \n 19 | \n \n \n 1 | \n \n \n 1 | \n \n \n 2 | \n \n \n 23 | \n
| \n \n On December 31, 2024 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
| \n \n Gross carrying value | \n \n \n 473 | \n \n \n 311 | \n \n \n 85 | \n \n \n 98 | \n \n \n 967 | \n
| \n \n Accumulated amortization, depreciation and impairment losses | \n \n \n \n \n (128) \n | \n \n \n \n \n (191) \n | \n \n \n \n \n (34) \n | \n \n \n \n \n (40) \n | \n \n \n \n \n (393) \n | \n
| \n \n Net book value 2024 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net book value | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n 316 | \n \n \n 59 | \n \n \n 21 | \n \n \n 25 | \n \n \n 420 | \n
| \n \n Additions | \n \n \n - | \n \n \n 122 | \n \n \n 41 | \n \n \n 3 | \n \n \n 166 | \n
| \n \n Amortization through income statement | \n \n \n - | \n \n \n \n \n (11) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (21) \n | \n
| \n \n Acquisitions through business combinations | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 10 | \n \n \n 10 | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n \n \n (3) \n | \n
| \n \n Disposal of a business | \n \n \n \n \n (18) \n | \n \n \n \n \n (38) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (58) \n | \n
| \n \n Other movements | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (3) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \n
| \n \n On December 31, 2023 | \n \n \n 291 | \n \n \n 131 | \n \n \n 48 | \n \n \n 33 | \n \n \n 504 | \n
| \n \n Gross carrying value | \n \n \n 411 | \n \n \n 298 | \n \n \n 71 | \n \n \n 56 | \n \n \n 835 | \n
| \n \n Accumulated amortization, depreciation and impairment losses | \n \n \n \n \n (120) \n | \n \n \n \n \n (166) \n | \n \n \n \n \n (23) \n | \n \n \n \n \n (23) \n | \n \n \n \n \n (331) \n | \n
| \n \n Net book value 2023 | \n \n \n 291 | \n \n \n 131 | \n \n \n 48 | \n \n \n 33 | \n \n \n 504 | \n
Amortization and depreciation through income statement is included in note\u00a013 Other operating expenses.
None of the intangible assets have titles that are restricted or have been pledged as security for liabilities.
With the exception of goodwill, all intangible assets within Americas have a finite useful life and are amortized accordingly. Future servicing rights are amortized over the term of the related insurance contracts, which can vary significantly depending on the maturity of the acquired portfolio and ranges between 10 to 30 years. As at December 31, 2024 11 years remain (2023: 12 years). Software is generally depreciated over an average period of three to five years (no changes compared to 2023).
\nReflects mainly Aegon Asset Management mandates added in 2023. These rights have a remaining amortization period of 8.5 years and a carrying amount of EUR 104 million on December 31, 2024 (2023: EUR 116 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1078m1055p": { "value": "\nIssued share capital and reserves attributable to shareholders of Aegon Ltd.
| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Share capital \u2013 par value | \n \n \n 25.1 | \n \n \n 241 | \n \n \n 265 | \n \n \n 319 | \n
| \n \n Share premium | \n \n \n 25.2 | \n \n \n 6,853 | \n \n \n 6,853 | \n \n \n 6,853 | \n
| \n \n Total share capital | \n \n | \n\n \n 7,094 | \n \n \n 7,118 | \n \n \n 7,172 | \n
| \n \n Retained earnings | \n \n | \n\n \n 4,347 | \n \n \n 5,099 | \n \n \n 7,770 | \n
| \n \n Treasury shares | \n \n \n 25.3 | \n \n \n \n \n (398) \n | \n \n \n \n \n (346) \n | \n \n \n \n \n (668) \n | \n
| \n \n Total retained earnings | \n \n | \n\n \n 3,949 | \n \n \n 4,753 | \n \n \n 7,103 | \n
| \n \n Revaluation reserves 1 | \n \n \n 25.4 | \n \n \n \n \n (3,706) \n | \n \n \n \n \n (3,770) \n | \n \n \n \n \n (4,563) \n | \n
| \n \n Remeasurement of defined benefit plans 2 | \n \n \n 25.5 | \n \n \n \n \n (1,072) \n | \n \n \n \n \n (1,006) \n | \n \n \n \n \n (1,565) \n | \n
| \n \n Other reserves 3 | \n \n \n 25.6 | \n \n \n 951 | \n \n \n 379 | \n \n \n 669 | \n
| \n \n Total shareholders' equity | \n \n | \n\n \n 7,215 | \n \n \n 7,475 | \n \n \n 8,815 | \n
| \n \n Share capital transactions relating to common shares | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n \n \n Number of shares (thousands) \n | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n \n \n Number of shares (thousands) \n | \n |
| \n \n Transactions in 2024: | \n \n | \n\n | \n\n | \n
| \n \n Cancellation of shares | \n \n \n \n \n (198,301) \n | \n \n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2023: | \n \n | \n\n | \n\n | \n
| \n \n Cancellation of shares | \n \n | \n\n \n \n \n (451,140) \n | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2022: | \n \n | \n\n | \n\n | \n
| \n \n Final dividend 2021 1 | \n \n | \n\n | \n\n \n \n \n (18,676) \n | \n
| \n \n \n \n Share buyback program (final dividend 2021) \n | \n \n | \n\n | \n\n \n 24,364 | \n
| \n \n Interim dividend 2022 1 | \n \n | \n\n | \n\n \n \n \n (21,365) \n | \n
| \n \n \n \n Share buyback program (interim dividend 2022) \n | \n \n | \n\n | \n\n \n 29,833 | \n
In July and in December 2024, Aegon executed share cancellation of total 161,929,480 common shares and 36,371,440 common shares B. The purpose of the share cancellation is to reduce the number of treasury shares that are not used to cover obligations arising from share-based incentive plans or other obligations.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Common shares | \n \n \n 198 | \n \n \n 218 | \n \n \n 253 | \n
| \n \n Common shares B | \n \n \n 42 | \n \n \n 47 | \n \n \n 66 | \n
| \n \n On December 31 | \n \n \n 241 | \n \n \n 265 | \n \n \n 319 | \n
| \n \n Common shares | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Authorized share capital | \n \n \n 480 | \n \n \n 480 | \n \n \n 720 | \n
| \n \n \n \n Number of authorized shares (in million) \n | \n \n \n 4,000 | \n \n \n 4,000 | \n \n \n 6,000 | \n
| \n \n Par value in cents per share | \n \n \n 12 | \n \n \n 12 | \n \n \n 12 | \n
| \n \n Common shares B | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Authorized share capital | \n \n \n 240 | \n \n \n 240 | \n \n \n 360 | \n
| \n \n \n \n Number of authorized shares (in million) \n | \n \n \n 2,000 | \n \n \n 2,000 | \n \n \n 3,000 | \n
| \n \n Par value in cents per share | \n \n \n 12 | \n \n \n 12 | \n \n \n 12 | \n
| \n | \n\n \n Common shares | \n \n \n Common shares B | \n ||
| \n | \n\n \n \n \n Number of shares (thousands) \n | \n \n \n Total amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Total amount | \n
| \n \n On December 31, 2021 | \n \n \n 2,106,313 | \n \n \n 253 | \n \n \n 568,839 | \n \n \n 68 | \n
| \n \n Shares withdrawn | \n \n \n \n \n (10,665) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (22,643) \n | \n \n \n \n \n (3) \n | \n
| \n \n Dividend | \n \n \n 13,782 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n
| \n \n On December 31, 2022 | \n \n \n 2,109,430 | \n \n \n 253 | \n \n \n 546,196 | \n \n \n 66 | \n
| \n \n Shares withdrawn | \n \n \n \n \n (294,703) \n | \n \n \n \n \n (35) \n | \n \n \n \n \n (156,437) \n | \n \n \n \n \n (19) \n | \n
| \n \n Dividend | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n On December 31, 2023 | \n \n \n 1,814,727 | \n \n \n 218 | \n \n \n 389,759 | \n \n \n 47 | \n
| \n \n Shares withdrawn | \n \n \n \n \n (161,929) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (36,371) \n | \n \n \n \n \n (4) \n | \n
| \n \n Dividend | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n On December 31, 2024 | \n \n \n 1,652,797 | \n \n \n 198 | \n \n \n 353,388 | \n \n \n 42 | \n
During 2024 common shares were withdrawn in two transactions. In July 2024, 126,960,718 common shares; while in December 2024, 34,968,762 common shares and 36,371,440 common shares B\u00a0were cancelled.\u00a0
The withdrawal of common shares were executed in two transactions during 2023. In July 2023, 79,703,317 common shares and 43,817,400 common shares B; while in December 2023, 215,000,000 common shares and 112,619,440 common shares B\u00a0were cancelled.\u00a0
The common shares and common shares B withdrawn in 2022 are the result of the cancellation of 10,664,951 and 22,643,360 shares, respectively, following the repurchase by the Company in connection with the share buyback program.\u00a0
The table below represents weighted average number of common shares including treasury shares attributable to Aegon Ltd.:
| \n | \n\n \n \n \n Weighted average number of common shares (thousands) \n | \n \n \n \n \n Weighted average number of common shares B (thousands) \n | \n
| \n \n 2022 | \n \n \n 2,107,315 | \n \n \n 559,906 | \n
| \n \n 2023 | \n \n \n 2,067,119 | \n \n \n 523,149 | \n
| \n \n 2024 | \n \n \n 1,753,162 | \n \n \n 388,169 | \n
All issued common shares and common shares B each have a nominal value of EUR 0.12 and are fully paid up. The Board is authorized, subject to certain restrictions of Bermuda law and the Bye-Laws, to repurchase Aegon Ltd. shares.
Vereniging Aegon, based in The Hague, the Netherlands, holds all the issued and outstanding common shares B.
For detailed information on the transaction between Aegon Ltd. and Vereniging Aegon, see note\u00a044 Related party transactions in the consolidated financial statements.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n On January 1 | \n \n \n 6,853 | \n \n \n 6,853 | \n \n \n 7,033 | \n
| \n \n Share dividend | \n \n \n - | \n \n \n - | \n \n \n \n \n (180) \n | \n
| \n \n On December 31 | \n \n \n 6,853 | \n \n \n 6,853 | \n \n \n 6,853 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Share premium relating to: | \n \n | \n\n | \n\n | \n
| \n \n - Common shares | \n \n \n 5,200 | \n \n \n 5,200 | \n \n \n 5,200 | \n
| \n \n - Common shares B | \n \n \n 1,653 | \n \n \n 1,653 | \n \n \n 1,653 | \n
| \n \n Total share premium | \n \n \n 6,853 | \n \n \n 6,853 | \n \n \n 6,853 | \n
The share premium account reflects the balance of paid-in amounts above par value at issuance of new shares less the\u00a0amounts charged for share dividends.
\nOn the reporting date, Aegon Ltd. held 68,934,478 (2023: 72,319,889, 2022: 145,821,347) of its own treasury common shares and 7,945,440 (2023: 7,945,440, 2022: 51,762,840) own treasury common shares B with a par value of EUR 0.12 each.
On June 2, 2023, Aegon completed its share buyback program, as announced on February 9, 2023, aimed at returning EUR\u00a0200\u00a0million of surplus cash capital to shareholders. Between February 10, 2023 and June 2, 2023, a total of 46,797,567 common shares were repurchased at an average price of EUR 4.2737 per share.
On July 6, 2023, Aegon announced the beginning of a EUR 1.5 billion share buyback program. This followed the completion of the combination of its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. on July\u00a04, 2023. On April 9, 2024, Aegon announced that this share buyback was increased by EUR 35 million in relation to the share-based compensation plans for senior management. The share buyback program was completed during 2024 (EUR\u00a01.535\u00a0billion in total of which EUR 815 million in 2023 and EUR 720 million in 2024).\u00a0
On December 16, 2024, Aegon completed its share buyback program, as announced on May 16, 2024, returning EUR\u00a0200\u00a0million to shareholders. Between July 8, 2024 and December 13, 2024, a total of 34,968,762 common shares were repurchased at an average price of EUR 5.7049 per share.
Movements in the number of treasury common shares held by Aegon Ltd. were as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n
| \n \n On January 1 | \n \n \n 72,320 | \n \n \n 346 | \n \n \n 145,821 | \n \n \n 662 | \n \n \n 70,958 | \n \n \n 262 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2024: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.38 | \n \n \n 85,321 | \n \n \n 459 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Sale: 1 transaction, average price EUR 4.77 | \n \n \n \n \n (6,649) \n | \n \n \n \n \n (32) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.81 | \n \n \n 44,904 | \n \n \n 261 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 5.06 | \n \n \n \n \n (126,961) \n | \n \n \n \n \n (643) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.76 | \n \n \n 23,468 | \n \n \n 135 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.59 | \n \n \n 11,501 | \n \n \n 64 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 5.51 | \n \n \n \n \n (34,969) \n | \n \n \n \n \n (193) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2023: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.00 | \n \n | \n\n | \n\n \n 8,516 | \n \n \n 43 | \n \n | \n\n | \n
| \n \n Sale: 2 transactions, average price EUR 4.46 | \n \n | \n\n | \n\n \n \n \n (4,924) \n | \n \n \n \n \n (22) \n | \n \n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.27 | \n \n | \n\n | \n\n \n 46,798 | \n \n \n 200 | \n \n | \n\n | \n
| \n \n Sale: 1 transaction, average price EUR 4.46 | \n \n | \n\n | \n\n \n \n \n (69) \n | \n \n \n - | \n \n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 4.59 | \n \n | \n\n | \n\n \n \n \n (79,703) \n | \n \n \n \n \n (366) \n | \n \n | \n\n | \n
| \n \n Purchase: 2 transactions, average price EUR 4.77 | \n \n | \n\n | \n\n \n 170,881 | \n \n \n 815 | \n \n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 4.59 | \n \n | \n\n | \n\n \n \n \n (215,000) \n | \n \n \n \n \n (986) \n | \n \n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2022: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.92 | \n \n | \n\n | \n\n | \n\n | \n\n \n 10,158 | \n \n \n 50 | \n
| \n \n Sale: 3 transactions, average price EUR 2.46 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (4,708) \n | \n \n \n \n \n (12) \n | \n
| \n \n Sale: 1 transaction, average price EUR 3.12 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (18,676) \n | \n \n \n \n \n (58) \n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.38 | \n \n | \n\n | \n\n | \n\n | \n\n \n 24,364 | \n \n \n 107 | \n
| \n \n Share withdrawn: 1 transaction, average price EUR 3.70 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (10,665) \n | \n \n \n \n \n (39) \n | \n
| \n \n Sale: 1 transaction, average price EUR 3.91 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (21,365) \n | \n \n \n \n \n (84) \n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.49 | \n \n | \n\n | \n\n | \n\n | \n\n \n 29,833 | \n \n \n 134 | \n
| \n \n Purchase: 3 transactions, average price EUR 4.58 | \n \n | \n\n | \n\n | \n\n | \n\n \n 65,921 | \n \n \n 302 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On December 31 | \n \n \n 68,934 | \n \n \n 397 | \n \n \n 72,320 | \n \n \n 346 | \n \n \n 145,821 | \n \n \n 662 | \n
Movements in the number of treasury common shares B held by Aegon Ltd. (refer to note\u00a044 Related party transactions) were\u00a0as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n
| \n \n On January 1 | \n \n \n 7,945 | \n \n \n 1 | \n \n \n 51,763 | \n \n \n 6 | \n \n \n 30,589 | \n \n \n 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2024: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 0.15 | \n \n \n 36,371 | \n \n \n 6 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.15 | \n \n \n \n \n (36,371) \n | \n \n \n \n \n (5) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2023: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.11 | \n \n | \n\n | \n\n \n \n \n (43,817) \n | \n \n \n \n \n (5) \n | \n \n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 0.13 | \n \n | \n\n | \n\n \n 112,619 | \n \n \n 15 | \n \n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.13 | \n \n | \n\n | \n\n \n \n \n (112,619) \n | \n \n \n \n \n (15) \n | \n \n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2022: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.10 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (22,643) \n | \n \n \n \n \n (2) \n | \n
| \n \n Purchase: 1 transaction, average price EUR 0.12 | \n \n | \n\n | \n\n | \n\n | \n\n \n 43,817 | \n \n \n 5 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On December 31 | \n \n \n 7,945 | \n \n \n 1 | \n \n \n 7,945 | \n \n \n 1 | \n \n \n 51,763 | \n \n \n 6 | \n
| \n | \n\n \n \n \n Weighted average number of treasury shares, including treasury shares held by subsidiaries (thousands) \n | \n \n \n \n \n Weighted average number of treasury shares B (thousands) \n | \n
| \n \n 2022 | \n \n \n 97,807 | \n \n \n 23,696 | \n
| \n \n 2023 | \n \n \n 188,403 | \n \n \n 33,035 | \n
| \n \n 2024 | \n \n \n 123,431 | \n \n \n 7,945 | \n
| \n | \n\n \n Investments measured at fair value through OCI | \n \n \n Real estate held for own use | \n \n \n Cash flow hedging reserve | \n \n \n Insurance contracts | \n \n \n Reinsurance contracts held | \n \n \n Total | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2024 | \n \n \n \n \n (3,300) \n | \n \n \n 9 | \n \n \n 842 | \n \n \n 939 | \n \n \n \n \n (2,261) \n | \n \n \n \n \n (3,770) \n | \n
| \n \n Gross revaluation | \n \n \n \n \n (1,187) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (88) \n | \n \n \n 2,250 | \n \n \n \n \n (556) \n | \n \n \n 418 | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 82 | \n \n \n - | \n \n \n \n \n (124) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (42) \n | \n
| \n \n Foreign currency translation differences | \n \n \n \n \n (259) \n | \n \n \n 1 | \n \n \n 49 | \n \n \n 136 | \n \n \n \n \n (168) \n | \n \n \n \n \n (242) \n | \n
| \n \n Tax effect | \n \n \n 237 | \n \n \n - | \n \n \n 45 | \n \n \n \n \n (530) \n | \n \n \n 177 | \n \n \n \n \n (71) \n | \n
| \n \n On December 31, 2024 | \n \n \n \n \n (4,426) \n | \n \n \n 9 | \n \n \n 724 | \n \n \n 2,795 | \n \n \n \n \n (2,808) \n | \n \n \n \n \n (3,706) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n \n \n (5,251) \n | \n \n \n 15 | \n \n \n 1,024 | \n \n \n 2,215 | \n \n \n \n \n (2,566) \n | \n \n \n \n \n (4,563) \n | \n
| \n \n Gross revaluation | \n \n \n 1,552 | \n \n \n \n \n (2) \n | \n \n \n \n \n (62) \n | \n \n \n \n \n (1,626) \n | \n \n \n 349 | \n \n \n 211 | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 706 | \n \n \n - | \n \n \n \n \n (130) \n | \n \n \n - | \n \n \n - | \n \n \n 577 | \n
| \n \n Foreign currency translation differences | \n \n \n 138 | \n \n \n - | \n \n \n \n \n (31) \n | \n \n \n \n \n (47) \n | \n \n \n 82 | \n \n \n 142 | \n
| \n \n Tax effect | \n \n \n \n \n (487) \n | \n \n \n - | \n \n \n 42 | \n \n \n 397 | \n \n \n \n \n (126) \n | \n \n \n \n \n (174) \n | \n
| \n \n Disposal of group assets | \n \n \n 42 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 38 | \n
| \n \n On December 31, 2023 | \n \n \n \n \n (3,300) \n | \n \n \n 9 | \n \n \n 842 | \n \n \n 939 | \n \n \n \n \n (2,261) \n | \n \n \n \n \n (3,770) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2022 | \n \n \n 6,810 | \n \n \n 32 | \n \n \n 1,100 | \n \n \n \n \n (11,291) \n | \n \n \n 768 | \n \n \n \n \n (2,580) \n | \n
| \n \n Gross revaluation | \n \n \n \n \n (16,743) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (66) \n | \n \n \n 18,680 | \n \n \n \n \n (4,672) \n | \n \n \n \n \n (2,803) \n | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 541 | \n \n \n - | \n \n \n \n \n (126) \n | \n \n \n - | \n \n \n - | \n \n \n 415 | \n
| \n \n Foreign currency translation differences | \n \n \n 588 | \n \n \n - | \n \n \n 74 | \n \n \n \n \n (931) \n | \n \n \n 95 | \n \n \n \n \n (174) \n | \n
| \n \n Tax effect | \n \n \n 3,499 | \n \n \n - | \n \n \n 42 | \n \n \n \n \n (4,211) \n | \n \n \n 1,243 | \n \n \n 574 | \n
| \n \n Disposal of group assets | \n \n \n 46 | \n \n \n \n \n (16) \n | \n \n \n - | \n \n \n \n \n (31) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Other | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n On December 31, 2022 | \n \n \n \n \n (5,251) \n | \n \n \n 15 | \n \n \n 1,024 | \n \n \n 2,215 | \n \n \n \n \n (2,566) \n | \n \n \n \n \n (4,563) \n | \n
The revaluation accounts for both investments measured at FVOCI and for real estate held for own use include unrealized gains and losses on these investments, net of tax. Upon sale, the amounts realized are recognized in the income statement (for FVOCI investments with recycling)\u00a0or transferred to retained earnings (for\u00a0real estate held for own use). The revaluation reserve also includes the loss allowance recognized for financial assets measured at FVOCI.
The closing balances of the revaluation reserve for investments measured at FVOCI relate to the following instruments:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Shares | \n \n \n 3 | \n \n \n 2 | \n \n \n 2 | \n
| \n \n Debt securities | \n \n \n \n \n (4,425) \n | \n \n \n \n \n (3,297) \n | \n \n \n \n \n (5,249) \n | \n
| \n \n Money market and other short-term investments | \n \n \n \n \n (5) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (5) \n | \n
| \n \n Revaluation reserve for investments measured at FVOCI | \n \n \n \n \n (4,426) \n | \n \n \n \n \n (3,300) \n | \n \n \n \n \n (5,251) \n | \n
The cash flow hedging reserve includes (un)realized gains and losses on the effective portions of hedging instruments, net\u00a0of\u00a0tax. The amounts are recognized in the income statement at the moment of realization of the hedged position to offset the\u00a0gain or loss from the hedged cash flow. No amounts have been released from equity to be included in the initial measurement of non-financial assets or liabilities.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n On January 1 | \n \n \n \n \n (1,006) \n | \n \n \n \n \n (1,565) \n | \n \n \n \n \n (2,199) \n | \n
| \n \n Remeasurements of defined benefit plans | \n \n \n \n \n (6) \n | \n \n \n \n \n (110) \n | \n \n \n 904 | \n
| \n \n Tax effect | \n \n \n 1 | \n \n \n 17 | \n \n \n \n \n (250) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (60) \n | \n \n \n 14 | \n \n \n \n \n (20) \n | \n
| \n \n Disposal of a business | \n \n \n - | \n \n \n 638 | \n \n \n - | \n
| \n \n Total remeasurement of defined benefit plans | \n \n \n \n \n (1,072) \n | \n \n \n \n \n (1,006) \n | \n \n \n \n \n (1,565) \n | \n
| \n | \n\n \n Foreign currency translation reserve | \n \n \n Net foreign investment hedging reserve | \n \n \n Equity movements of joint ventures and associates | \n \n \n Total | \n
| \n \n On January 1, 2024 | \n \n \n 798 | \n \n \n \n \n (324) \n | \n \n \n \n \n (95) \n | \n \n \n 379 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserves | \n \n \n 581 | \n \n \n \n \n (63) \n | \n \n \n - | \n \n \n 518 | \n
| \n \n Disposal of a business | \n \n \n \n \n (5) \n | \n \n \n 4 | \n \n \n \n \n (11) \n | \n \n \n \n \n (12) \n | \n
| \n \n Tax effect | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n \n \n (27) \n | \n \n \n \n \n (27) \n | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n 85 | \n \n \n 85 | \n
| \n \n On December 31, 2024 | \n \n \n 1,381 | \n \n \n \n \n (383) \n | \n \n \n \n \n (48) \n | \n \n \n 951 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n 1,108 | \n \n \n \n \n (371) \n | \n \n \n \n \n (68) \n | \n \n \n 669 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserves | \n \n \n \n \n (290) \n | \n \n \n 54 | \n \n \n - | \n \n \n \n \n (236) \n | \n
| \n \n Disposal of a business | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n \n \n (45) \n | \n
| \n \n Tax effect | \n \n \n 10 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n 3 | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n On December 31, 2023 | \n \n \n 798 | \n \n \n \n \n (324) \n | \n \n \n \n \n (95) \n | \n \n \n 379 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2022 | \n \n \n 596 | \n \n \n \n \n (338) \n | \n \n \n - | \n \n \n 258 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserves | \n \n \n 436 | \n \n \n \n \n (116) \n | \n \n \n \n \n (2) \n | \n \n \n 318 | \n
| \n \n Disposal of a business | \n \n \n 104 | \n \n \n 67 | \n \n \n \n \n (36) \n | \n \n \n 135 | \n
| \n \n Tax effect | \n \n \n \n \n (28) \n | \n \n \n 16 | \n \n \n - | \n \n \n \n \n (12) \n | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n \n \n (33) \n | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n 3 | \n
| \n \n On December 31, 2022 | \n \n \n 1,108 | \n \n \n \n \n (371) \n | \n \n \n \n \n (68) \n | \n \n \n 669 | \n
The foreign currency translation reserve includes the currency results from investments in non-euro denominated subsidiaries. The amounts are released to the income statement upon the sale of the subsidiary.
The net foreign investment hedging reserve is made up of gains and losses on the effective portions of hedging instruments, net of tax. The amounts are recognized in the income statement at the moment of realization of the hedged position to offset the gain or loss from the net foreign investment.
The equity movements of joint ventures and associates reflect Aegon's share of changes recognized directly in the joint venture's and associate\u2019s equity.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f12508m5902p": { "value": "\nIssued share capital and reserves attributable to shareholders of Aegon Ltd.
| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Share capital \u2013 par value | \n \n \n 25.1 | \n \n \n 241 | \n \n \n 265 | \n \n \n 319 | \n
| \n \n Share premium | \n \n \n 25.2 | \n \n \n 6,853 | \n \n \n 6,853 | \n \n \n 6,853 | \n
| \n \n Total share capital | \n \n | \n\n \n 7,094 | \n \n \n 7,118 | \n \n \n 7,172 | \n
| \n \n Retained earnings | \n \n | \n\n \n 4,347 | \n \n \n 5,099 | \n \n \n 7,770 | \n
| \n \n Treasury shares | \n \n \n 25.3 | \n \n \n \n \n (398) \n | \n \n \n \n \n (346) \n | \n \n \n \n \n (668) \n | \n
| \n \n Total retained earnings | \n \n | \n\n \n 3,949 | \n \n \n 4,753 | \n \n \n 7,103 | \n
| \n \n Revaluation reserves 1 | \n \n \n 25.4 | \n \n \n \n \n (3,706) \n | \n \n \n \n \n (3,770) \n | \n \n \n \n \n (4,563) \n | \n
| \n \n Remeasurement of defined benefit plans 2 | \n \n \n 25.5 | \n \n \n \n \n (1,072) \n | \n \n \n \n \n (1,006) \n | \n \n \n \n \n (1,565) \n | \n
| \n \n Other reserves 3 | \n \n \n 25.6 | \n \n \n 951 | \n \n \n 379 | \n \n \n 669 | \n
| \n \n Total shareholders' equity | \n \n | \n\n \n 7,215 | \n \n \n 7,475 | \n \n \n 8,815 | \n
| \n \n Share capital transactions relating to common shares | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n \n \n Number of shares (thousands) \n | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n \n \n Number of shares (thousands) \n | \n |
| \n \n Transactions in 2024: | \n \n | \n\n | \n\n | \n
| \n \n Cancellation of shares | \n \n \n \n \n (198,301) \n | \n \n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2023: | \n \n | \n\n | \n\n | \n
| \n \n Cancellation of shares | \n \n | \n\n \n \n \n (451,140) \n | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2022: | \n \n | \n\n | \n\n | \n
| \n \n Final dividend 2021 1 | \n \n | \n\n | \n\n \n \n \n (18,676) \n | \n
| \n \n \n \n Share buyback program (final dividend 2021) \n | \n \n | \n\n | \n\n \n 24,364 | \n
| \n \n Interim dividend 2022 1 | \n \n | \n\n | \n\n \n \n \n (21,365) \n | \n
| \n \n \n \n Share buyback program (interim dividend 2022) \n | \n \n | \n\n | \n\n \n 29,833 | \n
In July and in December 2024, Aegon executed share cancellation of total 161,929,480 common shares and 36,371,440 common shares B. The purpose of the share cancellation is to reduce the number of treasury shares that are not used to cover obligations arising from share-based incentive plans or other obligations.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Common shares | \n \n \n 198 | \n \n \n 218 | \n \n \n 253 | \n
| \n \n Common shares B | \n \n \n 42 | \n \n \n 47 | \n \n \n 66 | \n
| \n \n On December 31 | \n \n \n 241 | \n \n \n 265 | \n \n \n 319 | \n
| \n \n Common shares | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Authorized share capital | \n \n \n 480 | \n \n \n 480 | \n \n \n 720 | \n
| \n \n \n \n Number of authorized shares (in million) \n | \n \n \n 4,000 | \n \n \n 4,000 | \n \n \n 6,000 | \n
| \n \n Par value in cents per share | \n \n \n 12 | \n \n \n 12 | \n \n \n 12 | \n
| \n \n Common shares B | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Authorized share capital | \n \n \n 240 | \n \n \n 240 | \n \n \n 360 | \n
| \n \n \n \n Number of authorized shares (in million) \n | \n \n \n 2,000 | \n \n \n 2,000 | \n \n \n 3,000 | \n
| \n \n Par value in cents per share | \n \n \n 12 | \n \n \n 12 | \n \n \n 12 | \n
| \n | \n\n \n Common shares | \n \n \n Common shares B | \n ||
| \n | \n\n \n \n \n Number of shares (thousands) \n | \n \n \n Total amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Total amount | \n
| \n \n On December 31, 2021 | \n \n \n 2,106,313 | \n \n \n 253 | \n \n \n 568,839 | \n \n \n 68 | \n
| \n \n Shares withdrawn | \n \n \n \n \n (10,665) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (22,643) \n | \n \n \n \n \n (3) \n | \n
| \n \n Dividend | \n \n \n 13,782 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n
| \n \n On December 31, 2022 | \n \n \n 2,109,430 | \n \n \n 253 | \n \n \n 546,196 | \n \n \n 66 | \n
| \n \n Shares withdrawn | \n \n \n \n \n (294,703) \n | \n \n \n \n \n (35) \n | \n \n \n \n \n (156,437) \n | \n \n \n \n \n (19) \n | \n
| \n \n Dividend | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n On December 31, 2023 | \n \n \n 1,814,727 | \n \n \n 218 | \n \n \n 389,759 | \n \n \n 47 | \n
| \n \n Shares withdrawn | \n \n \n \n \n (161,929) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (36,371) \n | \n \n \n \n \n (4) \n | \n
| \n \n Dividend | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n On December 31, 2024 | \n \n \n 1,652,797 | \n \n \n 198 | \n \n \n 353,388 | \n \n \n 42 | \n
During 2024 common shares were withdrawn in two transactions. In July 2024, 126,960,718 common shares; while in December 2024, 34,968,762 common shares and 36,371,440 common shares B\u00a0were cancelled.\u00a0
The withdrawal of common shares were executed in two transactions during 2023. In July 2023, 79,703,317 common shares and 43,817,400 common shares B; while in December 2023, 215,000,000 common shares and 112,619,440 common shares B\u00a0were cancelled.\u00a0
The common shares and common shares B withdrawn in 2022 are the result of the cancellation of 10,664,951 and 22,643,360 shares, respectively, following the repurchase by the Company in connection with the share buyback program.\u00a0
The table below represents weighted average number of common shares including treasury shares attributable to Aegon Ltd.:
| \n | \n\n \n \n \n Weighted average number of common shares (thousands) \n | \n \n \n \n \n Weighted average number of common shares B (thousands) \n | \n
| \n \n 2022 | \n \n \n 2,107,315 | \n \n \n 559,906 | \n
| \n \n 2023 | \n \n \n 2,067,119 | \n \n \n 523,149 | \n
| \n \n 2024 | \n \n \n 1,753,162 | \n \n \n 388,169 | \n
All issued common shares and common shares B each have a nominal value of EUR 0.12 and are fully paid up. The Board is authorized, subject to certain restrictions of Bermuda law and the Bye-Laws, to repurchase Aegon Ltd. shares.
Vereniging Aegon, based in The Hague, the Netherlands, holds all the issued and outstanding common shares B.
For detailed information on the transaction between Aegon Ltd. and Vereniging Aegon, see note\u00a044 Related party transactions in the consolidated financial statements.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n On January 1 | \n \n \n 6,853 | \n \n \n 6,853 | \n \n \n 7,033 | \n
| \n \n Share dividend | \n \n \n - | \n \n \n - | \n \n \n \n \n (180) \n | \n
| \n \n On December 31 | \n \n \n 6,853 | \n \n \n 6,853 | \n \n \n 6,853 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Share premium relating to: | \n \n | \n\n | \n\n | \n
| \n \n - Common shares | \n \n \n 5,200 | \n \n \n 5,200 | \n \n \n 5,200 | \n
| \n \n - Common shares B | \n \n \n 1,653 | \n \n \n 1,653 | \n \n \n 1,653 | \n
| \n \n Total share premium | \n \n \n 6,853 | \n \n \n 6,853 | \n \n \n 6,853 | \n
The share premium account reflects the balance of paid-in amounts above par value at issuance of new shares less the\u00a0amounts charged for share dividends.
\nOn the reporting date, Aegon Ltd. held 68,934,478 (2023: 72,319,889, 2022: 145,821,347) of its own treasury common shares and 7,945,440 (2023: 7,945,440, 2022: 51,762,840) own treasury common shares B with a par value of EUR 0.12 each.
On June 2, 2023, Aegon completed its share buyback program, as announced on February 9, 2023, aimed at returning EUR\u00a0200\u00a0million of surplus cash capital to shareholders. Between February 10, 2023 and June 2, 2023, a total of 46,797,567 common shares were repurchased at an average price of EUR 4.2737 per share.
On July 6, 2023, Aegon announced the beginning of a EUR 1.5 billion share buyback program. This followed the completion of the combination of its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. on July\u00a04, 2023. On April 9, 2024, Aegon announced that this share buyback was increased by EUR 35 million in relation to the share-based compensation plans for senior management. The share buyback program was completed during 2024 (EUR\u00a01.535\u00a0billion in total of which EUR 815 million in 2023 and EUR 720 million in 2024).\u00a0
On December 16, 2024, Aegon completed its share buyback program, as announced on May 16, 2024, returning EUR\u00a0200\u00a0million to shareholders. Between July 8, 2024 and December 13, 2024, a total of 34,968,762 common shares were repurchased at an average price of EUR 5.7049 per share.
Movements in the number of treasury common shares held by Aegon Ltd. were as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n
| \n \n On January 1 | \n \n \n 72,320 | \n \n \n 346 | \n \n \n 145,821 | \n \n \n 662 | \n \n \n 70,958 | \n \n \n 262 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2024: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.38 | \n \n \n 85,321 | \n \n \n 459 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Sale: 1 transaction, average price EUR 4.77 | \n \n \n \n \n (6,649) \n | \n \n \n \n \n (32) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.81 | \n \n \n 44,904 | \n \n \n 261 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 5.06 | \n \n \n \n \n (126,961) \n | \n \n \n \n \n (643) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.76 | \n \n \n 23,468 | \n \n \n 135 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.59 | \n \n \n 11,501 | \n \n \n 64 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 5.51 | \n \n \n \n \n (34,969) \n | \n \n \n \n \n (193) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2023: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.00 | \n \n | \n\n | \n\n \n 8,516 | \n \n \n 43 | \n \n | \n\n | \n
| \n \n Sale: 2 transactions, average price EUR 4.46 | \n \n | \n\n | \n\n \n \n \n (4,924) \n | \n \n \n \n \n (22) \n | \n \n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.27 | \n \n | \n\n | \n\n \n 46,798 | \n \n \n 200 | \n \n | \n\n | \n
| \n \n Sale: 1 transaction, average price EUR 4.46 | \n \n | \n\n | \n\n \n \n \n (69) \n | \n \n \n - | \n \n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 4.59 | \n \n | \n\n | \n\n \n \n \n (79,703) \n | \n \n \n \n \n (366) \n | \n \n | \n\n | \n
| \n \n Purchase: 2 transactions, average price EUR 4.77 | \n \n | \n\n | \n\n \n 170,881 | \n \n \n 815 | \n \n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 4.59 | \n \n | \n\n | \n\n \n \n \n (215,000) \n | \n \n \n \n \n (986) \n | \n \n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2022: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.92 | \n \n | \n\n | \n\n | \n\n | \n\n \n 10,158 | \n \n \n 50 | \n
| \n \n Sale: 3 transactions, average price EUR 2.46 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (4,708) \n | \n \n \n \n \n (12) \n | \n
| \n \n Sale: 1 transaction, average price EUR 3.12 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (18,676) \n | \n \n \n \n \n (58) \n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.38 | \n \n | \n\n | \n\n | \n\n | \n\n \n 24,364 | \n \n \n 107 | \n
| \n \n Share withdrawn: 1 transaction, average price EUR 3.70 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (10,665) \n | \n \n \n \n \n (39) \n | \n
| \n \n Sale: 1 transaction, average price EUR 3.91 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (21,365) \n | \n \n \n \n \n (84) \n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.49 | \n \n | \n\n | \n\n | \n\n | \n\n \n 29,833 | \n \n \n 134 | \n
| \n \n Purchase: 3 transactions, average price EUR 4.58 | \n \n | \n\n | \n\n | \n\n | \n\n \n 65,921 | \n \n \n 302 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On December 31 | \n \n \n 68,934 | \n \n \n 397 | \n \n \n 72,320 | \n \n \n 346 | \n \n \n 145,821 | \n \n \n 662 | \n
Movements in the number of treasury common shares B held by Aegon Ltd. (refer to note\u00a044 Related party transactions) were\u00a0as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n
| \n \n On January 1 | \n \n \n 7,945 | \n \n \n 1 | \n \n \n 51,763 | \n \n \n 6 | \n \n \n 30,589 | \n \n \n 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2024: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 0.15 | \n \n \n 36,371 | \n \n \n 6 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.15 | \n \n \n \n \n (36,371) \n | \n \n \n \n \n (5) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2023: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.11 | \n \n | \n\n | \n\n \n \n \n (43,817) \n | \n \n \n \n \n (5) \n | \n \n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 0.13 | \n \n | \n\n | \n\n \n 112,619 | \n \n \n 15 | \n \n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.13 | \n \n | \n\n | \n\n \n \n \n (112,619) \n | \n \n \n \n \n (15) \n | \n \n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2022: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.10 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (22,643) \n | \n \n \n \n \n (2) \n | \n
| \n \n Purchase: 1 transaction, average price EUR 0.12 | \n \n | \n\n | \n\n | \n\n | \n\n \n 43,817 | \n \n \n 5 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On December 31 | \n \n \n 7,945 | \n \n \n 1 | \n \n \n 7,945 | \n \n \n 1 | \n \n \n 51,763 | \n \n \n 6 | \n
| \n | \n\n \n \n \n Weighted average number of treasury shares, including treasury shares held by subsidiaries (thousands) \n | \n \n \n \n \n Weighted average number of treasury shares B (thousands) \n | \n
| \n \n 2022 | \n \n \n 97,807 | \n \n \n 23,696 | \n
| \n \n 2023 | \n \n \n 188,403 | \n \n \n 33,035 | \n
| \n \n 2024 | \n \n \n 123,431 | \n \n \n 7,945 | \n
| \n | \n\n \n Investments measured at fair value through OCI | \n \n \n Real estate held for own use | \n \n \n Cash flow hedging reserve | \n \n \n Insurance contracts | \n \n \n Reinsurance contracts held | \n \n \n Total | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2024 | \n \n \n \n \n (3,300) \n | \n \n \n 9 | \n \n \n 842 | \n \n \n 939 | \n \n \n \n \n (2,261) \n | \n \n \n \n \n (3,770) \n | \n
| \n \n Gross revaluation | \n \n \n \n \n (1,187) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (88) \n | \n \n \n 2,250 | \n \n \n \n \n (556) \n | \n \n \n 418 | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 82 | \n \n \n - | \n \n \n \n \n (124) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (42) \n | \n
| \n \n Foreign currency translation differences | \n \n \n \n \n (259) \n | \n \n \n 1 | \n \n \n 49 | \n \n \n 136 | \n \n \n \n \n (168) \n | \n \n \n \n \n (242) \n | \n
| \n \n Tax effect | \n \n \n 237 | \n \n \n - | \n \n \n 45 | \n \n \n \n \n (530) \n | \n \n \n 177 | \n \n \n \n \n (71) \n | \n
| \n \n On December 31, 2024 | \n \n \n \n \n (4,426) \n | \n \n \n 9 | \n \n \n 724 | \n \n \n 2,795 | \n \n \n \n \n (2,808) \n | \n \n \n \n \n (3,706) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n \n \n (5,251) \n | \n \n \n 15 | \n \n \n 1,024 | \n \n \n 2,215 | \n \n \n \n \n (2,566) \n | \n \n \n \n \n (4,563) \n | \n
| \n \n Gross revaluation | \n \n \n 1,552 | \n \n \n \n \n (2) \n | \n \n \n \n \n (62) \n | \n \n \n \n \n (1,626) \n | \n \n \n 349 | \n \n \n 211 | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 706 | \n \n \n - | \n \n \n \n \n (130) \n | \n \n \n - | \n \n \n - | \n \n \n 577 | \n
| \n \n Foreign currency translation differences | \n \n \n 138 | \n \n \n - | \n \n \n \n \n (31) \n | \n \n \n \n \n (47) \n | \n \n \n 82 | \n \n \n 142 | \n
| \n \n Tax effect | \n \n \n \n \n (487) \n | \n \n \n - | \n \n \n 42 | \n \n \n 397 | \n \n \n \n \n (126) \n | \n \n \n \n \n (174) \n | \n
| \n \n Disposal of group assets | \n \n \n 42 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 38 | \n
| \n \n On December 31, 2023 | \n \n \n \n \n (3,300) \n | \n \n \n 9 | \n \n \n 842 | \n \n \n 939 | \n \n \n \n \n (2,261) \n | \n \n \n \n \n (3,770) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2022 | \n \n \n 6,810 | \n \n \n 32 | \n \n \n 1,100 | \n \n \n \n \n (11,291) \n | \n \n \n 768 | \n \n \n \n \n (2,580) \n | \n
| \n \n Gross revaluation | \n \n \n \n \n (16,743) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (66) \n | \n \n \n 18,680 | \n \n \n \n \n (4,672) \n | \n \n \n \n \n (2,803) \n | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 541 | \n \n \n - | \n \n \n \n \n (126) \n | \n \n \n - | \n \n \n - | \n \n \n 415 | \n
| \n \n Foreign currency translation differences | \n \n \n 588 | \n \n \n - | \n \n \n 74 | \n \n \n \n \n (931) \n | \n \n \n 95 | \n \n \n \n \n (174) \n | \n
| \n \n Tax effect | \n \n \n 3,499 | \n \n \n - | \n \n \n 42 | \n \n \n \n \n (4,211) \n | \n \n \n 1,243 | \n \n \n 574 | \n
| \n \n Disposal of group assets | \n \n \n 46 | \n \n \n \n \n (16) \n | \n \n \n - | \n \n \n \n \n (31) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Other | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n On December 31, 2022 | \n \n \n \n \n (5,251) \n | \n \n \n 15 | \n \n \n 1,024 | \n \n \n 2,215 | \n \n \n \n \n (2,566) \n | \n \n \n \n \n (4,563) \n | \n
The revaluation accounts for both investments measured at FVOCI and for real estate held for own use include unrealized gains and losses on these investments, net of tax. Upon sale, the amounts realized are recognized in the income statement (for FVOCI investments with recycling)\u00a0or transferred to retained earnings (for\u00a0real estate held for own use). The revaluation reserve also includes the loss allowance recognized for financial assets measured at FVOCI.
The closing balances of the revaluation reserve for investments measured at FVOCI relate to the following instruments:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Shares | \n \n \n 3 | \n \n \n 2 | \n \n \n 2 | \n
| \n \n Debt securities | \n \n \n \n \n (4,425) \n | \n \n \n \n \n (3,297) \n | \n \n \n \n \n (5,249) \n | \n
| \n \n Money market and other short-term investments | \n \n \n \n \n (5) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (5) \n | \n
| \n \n Revaluation reserve for investments measured at FVOCI | \n \n \n \n \n (4,426) \n | \n \n \n \n \n (3,300) \n | \n \n \n \n \n (5,251) \n | \n
The cash flow hedging reserve includes (un)realized gains and losses on the effective portions of hedging instruments, net\u00a0of\u00a0tax. The amounts are recognized in the income statement at the moment of realization of the hedged position to offset the\u00a0gain or loss from the hedged cash flow. No amounts have been released from equity to be included in the initial measurement of non-financial assets or liabilities.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n On January 1 | \n \n \n \n \n (1,006) \n | \n \n \n \n \n (1,565) \n | \n \n \n \n \n (2,199) \n | \n
| \n \n Remeasurements of defined benefit plans | \n \n \n \n \n (6) \n | \n \n \n \n \n (110) \n | \n \n \n 904 | \n
| \n \n Tax effect | \n \n \n 1 | \n \n \n 17 | \n \n \n \n \n (250) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (60) \n | \n \n \n 14 | \n \n \n \n \n (20) \n | \n
| \n \n Disposal of a business | \n \n \n - | \n \n \n 638 | \n \n \n - | \n
| \n \n Total remeasurement of defined benefit plans | \n \n \n \n \n (1,072) \n | \n \n \n \n \n (1,006) \n | \n \n \n \n \n (1,565) \n | \n
| \n | \n\n \n Foreign currency translation reserve | \n \n \n Net foreign investment hedging reserve | \n \n \n Equity movements of joint ventures and associates | \n \n \n Total | \n
| \n \n On January 1, 2024 | \n \n \n 798 | \n \n \n \n \n (324) \n | \n \n \n \n \n (95) \n | \n \n \n 379 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserves | \n \n \n 581 | \n \n \n \n \n (63) \n | \n \n \n - | \n \n \n 518 | \n
| \n \n Disposal of a business | \n \n \n \n \n (5) \n | \n \n \n 4 | \n \n \n \n \n (11) \n | \n \n \n \n \n (12) \n | \n
| \n \n Tax effect | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n \n \n (27) \n | \n \n \n \n \n (27) \n | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n 85 | \n \n \n 85 | \n
| \n \n On December 31, 2024 | \n \n \n 1,381 | \n \n \n \n \n (383) \n | \n \n \n \n \n (48) \n | \n \n \n 951 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n 1,108 | \n \n \n \n \n (371) \n | \n \n \n \n \n (68) \n | \n \n \n 669 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserves | \n \n \n \n \n (290) \n | \n \n \n 54 | \n \n \n - | \n \n \n \n \n (236) \n | \n
| \n \n Disposal of a business | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n \n \n (45) \n | \n
| \n \n Tax effect | \n \n \n 10 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n 3 | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n On December 31, 2023 | \n \n \n 798 | \n \n \n \n \n (324) \n | \n \n \n \n \n (95) \n | \n \n \n 379 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2022 | \n \n \n 596 | \n \n \n \n \n (338) \n | \n \n \n - | \n \n \n 258 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserves | \n \n \n 436 | \n \n \n \n \n (116) \n | \n \n \n \n \n (2) \n | \n \n \n 318 | \n
| \n \n Disposal of a business | \n \n \n 104 | \n \n \n 67 | \n \n \n \n \n (36) \n | \n \n \n 135 | \n
| \n \n Tax effect | \n \n \n \n \n (28) \n | \n \n \n 16 | \n \n \n - | \n \n \n \n \n (12) \n | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n \n \n (33) \n | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n 3 | \n
| \n \n On December 31, 2022 | \n \n \n 1,108 | \n \n \n \n \n (371) \n | \n \n \n \n \n (68) \n | \n \n \n 669 | \n
The foreign currency translation reserve includes the currency results from investments in non-euro denominated subsidiaries. The amounts are released to the income statement upon the sale of the subsidiary.
The net foreign investment hedging reserve is made up of gains and losses on the effective portions of hedging instruments, net of tax. The amounts are recognized in the income statement at the moment of realization of the hedged position to offset the gain or loss from the net foreign investment.
The equity movements of joint ventures and associates reflect Aegon's share of changes recognized directly in the joint venture's and associate\u2019s equity.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1079m1056p": { "value": "\nOn the reporting date, Aegon Ltd. held 68,934,478 (2023: 72,319,889, 2022: 145,821,347) of its own treasury common shares and 7,945,440 (2023: 7,945,440, 2022: 51,762,840) own treasury common shares B with a par value of EUR 0.12 each.
On June 2, 2023, Aegon completed its share buyback program, as announced on February 9, 2023, aimed at returning EUR\u00a0200\u00a0million of surplus cash capital to shareholders. Between February 10, 2023 and June 2, 2023, a total of 46,797,567 common shares were repurchased at an average price of EUR 4.2737 per share.
On July 6, 2023, Aegon announced the beginning of a EUR 1.5 billion share buyback program. This followed the completion of the combination of its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. on July\u00a04, 2023. On April 9, 2024, Aegon announced that this share buyback was increased by EUR 35 million in relation to the share-based compensation plans for senior management. The share buyback program was completed during 2024 (EUR\u00a01.535\u00a0billion in total of which EUR 815 million in 2023 and EUR 720 million in 2024).\u00a0
On December 16, 2024, Aegon completed its share buyback program, as announced on May 16, 2024, returning EUR\u00a0200\u00a0million to shareholders. Between July 8, 2024 and December 13, 2024, a total of 34,968,762 common shares were repurchased at an average price of EUR 5.7049 per share.
Movements in the number of treasury common shares held by Aegon Ltd. were as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n
| \n \n On January 1 | \n \n \n 72,320 | \n \n \n 346 | \n \n \n 145,821 | \n \n \n 662 | \n \n \n 70,958 | \n \n \n 262 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2024: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.38 | \n \n \n 85,321 | \n \n \n 459 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Sale: 1 transaction, average price EUR 4.77 | \n \n \n \n \n (6,649) \n | \n \n \n \n \n (32) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.81 | \n \n \n 44,904 | \n \n \n 261 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 5.06 | \n \n \n \n \n (126,961) \n | \n \n \n \n \n (643) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.76 | \n \n \n 23,468 | \n \n \n 135 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.59 | \n \n \n 11,501 | \n \n \n 64 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 5.51 | \n \n \n \n \n (34,969) \n | \n \n \n \n \n (193) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2023: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 5.00 | \n \n | \n\n | \n\n \n 8,516 | \n \n \n 43 | \n \n | \n\n | \n
| \n \n Sale: 2 transactions, average price EUR 4.46 | \n \n | \n\n | \n\n \n \n \n (4,924) \n | \n \n \n \n \n (22) \n | \n \n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.27 | \n \n | \n\n | \n\n \n 46,798 | \n \n \n 200 | \n \n | \n\n | \n
| \n \n Sale: 1 transaction, average price EUR 4.46 | \n \n | \n\n | \n\n \n \n \n (69) \n | \n \n \n - | \n \n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 4.59 | \n \n | \n\n | \n\n \n \n \n (79,703) \n | \n \n \n \n \n (366) \n | \n \n | \n\n | \n
| \n \n Purchase: 2 transactions, average price EUR 4.77 | \n \n | \n\n | \n\n \n 170,881 | \n \n \n 815 | \n \n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 4.59 | \n \n | \n\n | \n\n \n \n \n (215,000) \n | \n \n \n \n \n (986) \n | \n \n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2022: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.92 | \n \n | \n\n | \n\n | \n\n | \n\n \n 10,158 | \n \n \n 50 | \n
| \n \n Sale: 3 transactions, average price EUR 2.46 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (4,708) \n | \n \n \n \n \n (12) \n | \n
| \n \n Sale: 1 transaction, average price EUR 3.12 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (18,676) \n | \n \n \n \n \n (58) \n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.38 | \n \n | \n\n | \n\n | \n\n | \n\n \n 24,364 | \n \n \n 107 | \n
| \n \n Share withdrawn: 1 transaction, average price EUR 3.70 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (10,665) \n | \n \n \n \n \n (39) \n | \n
| \n \n Sale: 1 transaction, average price EUR 3.91 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (21,365) \n | \n \n \n \n \n (84) \n | \n
| \n \n Purchase: 1 transaction, average price EUR 4.49 | \n \n | \n\n | \n\n | \n\n | \n\n \n 29,833 | \n \n \n 134 | \n
| \n \n Purchase: 3 transactions, average price EUR 4.58 | \n \n | \n\n | \n\n | \n\n | \n\n \n 65,921 | \n \n \n 302 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On December 31 | \n \n \n 68,934 | \n \n \n 397 | \n \n \n 72,320 | \n \n \n 346 | \n \n \n 145,821 | \n \n \n 662 | \n
Movements in the number of treasury common shares B held by Aegon Ltd. (refer to note\u00a044 Related party transactions) were\u00a0as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n |||
| \n | \n\n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n \n \n \n \n Number of shares (thousands) \n | \n \n \n Amount | \n
| \n \n On January 1 | \n \n \n 7,945 | \n \n \n 1 | \n \n \n 51,763 | \n \n \n 6 | \n \n \n 30,589 | \n \n \n 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2024: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 0.15 | \n \n \n 36,371 | \n \n \n 6 | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.15 | \n \n \n \n \n (36,371) \n | \n \n \n \n \n (5) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2023: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.11 | \n \n | \n\n | \n\n \n \n \n (43,817) \n | \n \n \n \n \n (5) \n | \n \n | \n\n | \n
| \n \n Purchase: 1 transaction, average price EUR 0.13 | \n \n | \n\n | \n\n \n 112,619 | \n \n \n 15 | \n \n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.13 | \n \n | \n\n | \n\n \n \n \n (112,619) \n | \n \n \n \n \n (15) \n | \n \n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Transactions in 2022: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares withdrawn: 1 transaction, average price EUR 0.10 | \n \n | \n\n | \n\n | \n\n | \n\n \n \n \n (22,643) \n | \n \n \n \n \n (2) \n | \n
| \n \n Purchase: 1 transaction, average price EUR 0.12 | \n \n | \n\n | \n\n | \n\n | \n\n \n 43,817 | \n \n \n 5 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On December 31 | \n \n \n 7,945 | \n \n \n 1 | \n \n \n 7,945 | \n \n \n 1 | \n \n \n 51,763 | \n \n \n 6 | \n
| \n | \n\n \n \n \n Weighted average number of treasury shares, including treasury shares held by subsidiaries (thousands) \n | \n \n \n \n \n Weighted average number of treasury shares B (thousands) \n | \n
| \n \n 2022 | \n \n \n 97,807 | \n \n \n 23,696 | \n
| \n \n 2023 | \n \n \n 188,403 | \n \n \n 33,035 | \n
| \n \n 2024 | \n \n \n 123,431 | \n \n \n 7,945 | \n
| \n | \n\n \n Investments measured at fair value through OCI | \n \n \n Real estate held for own use | \n \n \n Cash flow hedging reserve | \n \n \n Insurance contracts | \n \n \n Reinsurance contracts held | \n \n \n Total | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2024 | \n \n \n \n \n (3,300) \n | \n \n \n 9 | \n \n \n 842 | \n \n \n 939 | \n \n \n \n \n (2,261) \n | \n \n \n \n \n (3,770) \n | \n
| \n \n Gross revaluation | \n \n \n \n \n (1,187) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (88) \n | \n \n \n 2,250 | \n \n \n \n \n (556) \n | \n \n \n 418 | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 82 | \n \n \n - | \n \n \n \n \n (124) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (42) \n | \n
| \n \n Foreign currency translation differences | \n \n \n \n \n (259) \n | \n \n \n 1 | \n \n \n 49 | \n \n \n 136 | \n \n \n \n \n (168) \n | \n \n \n \n \n (242) \n | \n
| \n \n Tax effect | \n \n \n 237 | \n \n \n - | \n \n \n 45 | \n \n \n \n \n (530) \n | \n \n \n 177 | \n \n \n \n \n (71) \n | \n
| \n \n On December 31, 2024 | \n \n \n \n \n (4,426) \n | \n \n \n 9 | \n \n \n 724 | \n \n \n 2,795 | \n \n \n \n \n (2,808) \n | \n \n \n \n \n (3,706) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n \n \n (5,251) \n | \n \n \n 15 | \n \n \n 1,024 | \n \n \n 2,215 | \n \n \n \n \n (2,566) \n | \n \n \n \n \n (4,563) \n | \n
| \n \n Gross revaluation | \n \n \n 1,552 | \n \n \n \n \n (2) \n | \n \n \n \n \n (62) \n | \n \n \n \n \n (1,626) \n | \n \n \n 349 | \n \n \n 211 | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 706 | \n \n \n - | \n \n \n \n \n (130) \n | \n \n \n - | \n \n \n - | \n \n \n 577 | \n
| \n \n Foreign currency translation differences | \n \n \n 138 | \n \n \n - | \n \n \n \n \n (31) \n | \n \n \n \n \n (47) \n | \n \n \n 82 | \n \n \n 142 | \n
| \n \n Tax effect | \n \n \n \n \n (487) \n | \n \n \n - | \n \n \n 42 | \n \n \n 397 | \n \n \n \n \n (126) \n | \n \n \n \n \n (174) \n | \n
| \n \n Disposal of group assets | \n \n \n 42 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 38 | \n
| \n \n On December 31, 2023 | \n \n \n \n \n (3,300) \n | \n \n \n 9 | \n \n \n 842 | \n \n \n 939 | \n \n \n \n \n (2,261) \n | \n \n \n \n \n (3,770) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2022 | \n \n \n 6,810 | \n \n \n 32 | \n \n \n 1,100 | \n \n \n \n \n (11,291) \n | \n \n \n 768 | \n \n \n \n \n (2,580) \n | \n
| \n \n Gross revaluation | \n \n \n \n \n (16,743) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (66) \n | \n \n \n 18,680 | \n \n \n \n \n (4,672) \n | \n \n \n \n \n (2,803) \n | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 541 | \n \n \n - | \n \n \n \n \n (126) \n | \n \n \n - | \n \n \n - | \n \n \n 415 | \n
| \n \n Foreign currency translation differences | \n \n \n 588 | \n \n \n - | \n \n \n 74 | \n \n \n \n \n (931) \n | \n \n \n 95 | \n \n \n \n \n (174) \n | \n
| \n \n Tax effect | \n \n \n 3,499 | \n \n \n - | \n \n \n 42 | \n \n \n \n \n (4,211) \n | \n \n \n 1,243 | \n \n \n 574 | \n
| \n \n Disposal of group assets | \n \n \n 46 | \n \n \n \n \n (16) \n | \n \n \n - | \n \n \n \n \n (31) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Other | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n On December 31, 2022 | \n \n \n \n \n (5,251) \n | \n \n \n 15 | \n \n \n 1,024 | \n \n \n 2,215 | \n \n \n \n \n (2,566) \n | \n \n \n \n \n (4,563) \n | \n
The revaluation accounts for both investments measured at FVOCI and for real estate held for own use include unrealized gains and losses on these investments, net of tax. Upon sale, the amounts realized are recognized in the income statement (for FVOCI investments with recycling)\u00a0or transferred to retained earnings (for\u00a0real estate held for own use). The revaluation reserve also includes the loss allowance recognized for financial assets measured at FVOCI.
The closing balances of the revaluation reserve for investments measured at FVOCI relate to the following instruments:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Shares | \n \n \n 3 | \n \n \n 2 | \n \n \n 2 | \n
| \n \n Debt securities | \n \n \n \n \n (4,425) \n | \n \n \n \n \n (3,297) \n | \n \n \n \n \n (5,249) \n | \n
| \n \n Money market and other short-term investments | \n \n \n \n \n (5) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (5) \n | \n
| \n \n Revaluation reserve for investments measured at FVOCI | \n \n \n \n \n (4,426) \n | \n \n \n \n \n (3,300) \n | \n \n \n \n \n (5,251) \n | \n
The cash flow hedging reserve includes (un)realized gains and losses on the effective portions of hedging instruments, net\u00a0of\u00a0tax. The amounts are recognized in the income statement at the moment of realization of the hedged position to offset the\u00a0gain or loss from the hedged cash flow. No amounts have been released from equity to be included in the initial measurement of non-financial assets or liabilities.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n On January 1 | \n \n \n \n \n (1,006) \n | \n \n \n \n \n (1,565) \n | \n \n \n \n \n (2,199) \n | \n
| \n \n Remeasurements of defined benefit plans | \n \n \n \n \n (6) \n | \n \n \n \n \n (110) \n | \n \n \n 904 | \n
| \n \n Tax effect | \n \n \n 1 | \n \n \n 17 | \n \n \n \n \n (250) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (60) \n | \n \n \n 14 | \n \n \n \n \n (20) \n | \n
| \n \n Disposal of a business | \n \n \n - | \n \n \n 638 | \n \n \n - | \n
| \n \n Total remeasurement of defined benefit plans | \n \n \n \n \n (1,072) \n | \n \n \n \n \n (1,006) \n | \n \n \n \n \n (1,565) \n | \n
| \n | \n\n \n Foreign currency translation reserve | \n \n \n Net foreign investment hedging reserve | \n \n \n Equity movements of joint ventures and associates | \n \n \n Total | \n
| \n \n On January 1, 2024 | \n \n \n 798 | \n \n \n \n \n (324) \n | \n \n \n \n \n (95) \n | \n \n \n 379 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserves | \n \n \n 581 | \n \n \n \n \n (63) \n | \n \n \n - | \n \n \n 518 | \n
| \n \n Disposal of a business | \n \n \n \n \n (5) \n | \n \n \n 4 | \n \n \n \n \n (11) \n | \n \n \n \n \n (12) \n | \n
| \n \n Tax effect | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n \n \n (27) \n | \n \n \n \n \n (27) \n | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n 85 | \n \n \n 85 | \n
| \n \n On December 31, 2024 | \n \n \n 1,381 | \n \n \n \n \n (383) \n | \n \n \n \n \n (48) \n | \n \n \n 951 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n 1,108 | \n \n \n \n \n (371) \n | \n \n \n \n \n (68) \n | \n \n \n 669 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserves | \n \n \n \n \n (290) \n | \n \n \n 54 | \n \n \n - | \n \n \n \n \n (236) \n | \n
| \n \n Disposal of a business | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n \n \n (45) \n | \n
| \n \n Tax effect | \n \n \n 10 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n 3 | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n On December 31, 2023 | \n \n \n 798 | \n \n \n \n \n (324) \n | \n \n \n \n \n (95) \n | \n \n \n 379 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2022 | \n \n \n 596 | \n \n \n \n \n (338) \n | \n \n \n - | \n \n \n 258 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserves | \n \n \n 436 | \n \n \n \n \n (116) \n | \n \n \n \n \n (2) \n | \n \n \n 318 | \n
| \n \n Disposal of a business | \n \n \n 104 | \n \n \n 67 | \n \n \n \n \n (36) \n | \n \n \n 135 | \n
| \n \n Tax effect | \n \n \n \n \n (28) \n | \n \n \n 16 | \n \n \n - | \n \n \n \n \n (12) \n | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n \n \n (33) \n | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n 3 | \n
| \n \n On December 31, 2022 | \n \n \n 1,108 | \n \n \n \n \n (371) \n | \n \n \n \n \n (68) \n | \n \n \n 669 | \n
The foreign currency translation reserve includes the currency results from investments in non-euro denominated subsidiaries. The amounts are released to the income statement upon the sale of the subsidiary.
The net foreign investment hedging reserve is made up of gains and losses on the effective portions of hedging instruments, net of tax. The amounts are recognized in the income statement at the moment of realization of the hedged position to offset the gain or loss from the net foreign investment.
The equity movements of joint ventures and associates reflect Aegon's share of changes recognized directly in the joint venture's and associate\u2019s equity.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f11807m5781p": { "value": "\n| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n Year of next call | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Fixed to floating subordinated notes | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n EUR 700 million | \n \n \n 4% 2 | \n \n \n Annually, April 25 | \n \n \n 2014/44 | \n \n \n - | \n \n \n - | \n \n \n 700 | \n
| \n \n USD 800 million | \n \n \n 5.5% 3 | \n \n \n Semi-annually, April 11 | \n \n \n 2018/48 | \n \n \n 2028 | \n \n \n 770 | \n \n \n 718 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fixed subordinated notes | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n USD 925 million 1 | \n \n \n 5.1% | \n \n \n Quarterly, March 15 | \n \n \n 2019/49 | \n \n \n 2025 | \n \n \n 883 | \n \n \n 826 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n | \n\n \n 1,653 | \n \n \n 2,244 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value of subordinated borrowings | \n \n | \n\n | \n\n | \n\n | \n\n \n 1,490 | \n \n \n 2,122 | \n
Effective April 25, 2024, Aegon redeemed the EUR 700 million fixed-to-floating subordinated notes.\u00a0
These securities are subordinated and rank senior to the junior perpetual capital securities and the perpetual contingent\u00a0convertible securities, equally with the perpetual cumulative subordinated bonds and junior to all other liabilities. The\u00a0conditions of the securities contain certain provisions for coupon payment deferral\u200b\u200b\u200b\u200b\u200b\u200b\u200b. There have been no defaults or breaches of conditions during the period.
\n| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n Year of next call 2 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n USD 225 million 1 | \n \n \n 7.65% | \n \n \n Semi-annually, December 1 | \n \n \n 1996/2026 | \n \n \n n.a. | \n \n \n 66 | \n \n \n 67 | \n
| \n \n USD 190 million 1 | \n \n \n 7.625% | \n \n \n Semi-annually, November 15 | \n \n \n 1997/2037 | \n \n \n n.a. | \n \n \n 47 | \n \n \n 44 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n | \n\n \n 113 | \n \n \n 111 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value of trust pass-through securities | \n \n | \n\n | \n\n | \n\n | \n\n \n 133 | \n \n \n 125 | \n
Trust pass-through securities are securities through which the holder participates in a trust. The assets of these trusts consist of junior subordinated deferrable interest debentures issued by Transamerica Corporation. The trust pass-through securities carry provisions with regard to deferral of distributions for extension periods up to a maximum of 10 consecutive semi-annual periods. The trust pass-through securities are subordinated to all other unsubordinated borrowings and liabilities of Transamerica Corporation.\u00a0
There were no defaults or breaches of conditions during the period.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Capital funding | \n \n \n 1,533 | \n \n \n 763 | \n
| \n \n Operational funding | \n \n \n 1,480 | \n \n \n 1,593 | \n
| \n \n On December 31 | \n \n \n 3,013 | \n \n \n 2,356 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 37 | \n \n \n 32 | \n
| \n \n Non-current | \n \n \n 2,976 | \n \n \n 2,325 | \n
| \n \n On December 31 | \n \n \n 3,013 | \n \n \n 2,356 | \n
| \n | \n\n | \n\n | \n
| \n \n Fair value of borrowings | \n \n \n 3,076 | \n \n \n 2,459 | \n
Aegon\u2019s borrowings are defined separately as capital funding and operational funding. Capital funding includes debt securities that are issued for general corporate purposes and for capitalizing its business units. Capital funding is part of the Company\u2019s total capitalization that is used for financing its subsidiaries and the cash held at the holding company. Operational funding includes debt securities that are issued for financing of dedicated pools of assets. These assets are either legally segregated or tracked as separate portfolios.
The difference between the contractually required payment at the maturity date and the carrying amount of the borrowings amounted to EUR 8 million positive (2023: EUR 6 million positive).
\nA detailed composition of capital funding is included in the following table:
| \n \n \n \n (sorted at maturity) \n | \n \n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n USD 760 million Senior Unsecured Notes | \n \n \n 5.500% | \n \n \n Semi-annually, April 16 | \n \n \n 2024 / 27 | \n \n \n 731 | \n \n \n - | \n
| \n \n GBP 250 million Medium-Term Notes | \n \n \n 6.125% | \n \n \n December 15 | \n \n \n 1999 / 31 | \n \n \n 301 | \n \n \n 287 | \n
| \n \n GBP 400 million Senior Unsecured Notes | \n \n \n 6.625% | \n \n \n Semi-annually, December 16 | \n \n \n 2009 / 39 | \n \n \n 480 | \n \n \n 457 | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n \n 20 | \n \n \n 18 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 1,533 | \n \n \n 763 | \n
In 2024, capital funding increased by EUR 770 million mainly due to the issuance of EUR 700 million (USD 760 million) of senior unsecured notes with a fixed coupon of 5.5% and a tenor of three years. Net proceeds from this issuance were used for\u00a0general corporate purposes, including the redemption of the EUR 700 million of fixed-to-floating subordinated notes. The\u00a0notes were issued by Aegon Funding Company LLC (AFC) and was guaranteed on a senior unsecured basis by Aegon\u00a0Ltd. The\u00a0maturity date is on April 16, 2027.
These loans are considered senior debt in calculating financial leverage in note 37 Capital management and solvency.
\nIn 2024, the operational funding decreased by EUR 113 million mainly due to the paydown of Federal Home Loan Bank (FHLB) borrowings. This borrowing program is part of Aegon\u2019s asset\u2013liability management strategy.
| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n FHLB Secured borrowings 1 | \n \n \n Fixed | \n \n \n Quarterly | \n \n \n 2022 / 26 | \n \n \n 1,449 | \n \n \n 1,562 | \n
| \n \n North Westerly VI Note 1 | \n \n \n Floating | \n \n \n Quarterly | \n \n \n 2020 / 32 | \n \n \n 15 | \n \n \n 15 | \n
| \n \n North Westerly VII Note 1 | \n \n \n Floating | \n \n \n Quarterly | \n \n \n 2021 / 34 | \n \n \n 16 | \n \n \n 16 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 1,480 | \n \n \n 1,593 | \n
| \n \n Undrawn committed borrowing facilities: | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Floating-rate | \n \n | \n\n | \n
| \n \n - Expiring beyond one year | \n \n \n 1,544 | \n \n \n 2,623 | \n
| \n \n On December 31 | \n \n \n 1,544 | \n \n \n 2,623 | \n
These facilities were reduced as a result of lower contingent liquidity needs following the combination of Aegon\u2019s Dutch insurance and banking activities with a.s.r.
There were no defaults or breaches of conditions during the period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5734m3787p": { "value": "\n| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n Year of next call | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Fixed to floating subordinated notes | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n EUR 700 million | \n \n \n 4% 2 | \n \n \n Annually, April 25 | \n \n \n 2014/44 | \n \n \n - | \n \n \n - | \n \n \n 700 | \n
| \n \n USD 800 million | \n \n \n 5.5% 3 | \n \n \n Semi-annually, April 11 | \n \n \n 2018/48 | \n \n \n 2028 | \n \n \n 770 | \n \n \n 718 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fixed subordinated notes | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n USD 925 million 1 | \n \n \n 5.1% | \n \n \n Quarterly, March 15 | \n \n \n 2019/49 | \n \n \n 2025 | \n \n \n 883 | \n \n \n 826 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n | \n\n \n 1,653 | \n \n \n 2,244 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value of subordinated borrowings | \n \n | \n\n | \n\n | \n\n | \n\n \n 1,490 | \n \n \n 2,122 | \n
Effective April 25, 2024, Aegon redeemed the EUR 700 million fixed-to-floating subordinated notes.\u00a0
These securities are subordinated and rank senior to the junior perpetual capital securities and the perpetual contingent\u00a0convertible securities, equally with the perpetual cumulative subordinated bonds and junior to all other liabilities. The\u00a0conditions of the securities contain certain provisions for coupon payment deferral\u200b\u200b\u200b\u200b\u200b\u200b\u200b. There have been no defaults or breaches of conditions during the period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSubordinatedLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f10150m3800p": { "value": "\nAll groups of investment contracts with discretionary participating features were not measured under the PAA and were\u00a0in\u00a0a\u00a0liability position at the reporting date and comparative years.
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Investment contracts with DPF - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Net balance, on January 1, 2024 | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (80) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (80) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 43 | \n \n \n 43 | \n
| \n \n Insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 43 | \n \n \n 43 | \n
| \n \n Investment components | \n \n \n \n \n (2,934) \n | \n \n \n - | \n \n \n 2,934 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (3,014) \n | \n \n \n - | \n \n \n 2,977 | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n 452 | \n \n \n - | \n \n \n \n \n (2,977) \n | \n \n \n \n \n (2,525) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 1,030 | \n \n \n - | \n \n \n - | \n \n \n 1,030 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Investment contracts with DPF - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,055 | \n \n \n - | \n \n \n - | \n \n \n 21,055 | \n
| \n \n Net balance, on January 1, 2023 | \n \n \n 21,055 | \n \n \n - | \n \n \n - | \n \n \n 21,055 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (64) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (64) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 36 | \n \n \n 36 | \n
| \n \n Insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 36 | \n \n \n 36 | \n
| \n \n Investment components | \n \n \n \n \n (2,417) \n | \n \n \n - | \n \n \n 2,418 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (2,481) \n | \n \n \n - | \n \n \n 2,453 | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n 423 | \n \n \n - | \n \n \n \n \n (2,453) \n | \n \n \n \n \n (2,030) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other movements | \n \n \n 172 | \n \n \n - | \n \n \n - | \n \n \n 172 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 503 | \n \n \n - | \n \n \n - | \n \n \n 503 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Investment contracts with DPF - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n \n Net balance, on January 1, 2024 | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (70) \n | \n \n \n \n \n (7) \n | \n \n \n 76 | \n \n \n - | \n
| \n \n Changes that relate to future service | \n \n \n \n \n (70) \n | \n \n \n \n \n (7) \n | \n \n \n 76 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n \n \n (33) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (14) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 11 | \n
| \n \n Changes that relate to current service | \n \n \n 11 | \n \n \n \n \n (14) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes that relate to past service | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n \n \n (59) \n | \n \n \n \n \n (21) \n | \n \n \n 43 | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 470 | \n \n \n - | \n \n \n - | \n \n \n 470 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (2,995) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,995) \n | \n
| \n \n Cash flows | \n \n \n \n \n (2,525) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,525) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Other movements | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 1,015 | \n \n \n 6 | \n \n \n 10 | \n \n \n 1,030 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n
| \n \n Investment contracts with DPF - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 20,874 | \n \n \n 109 | \n \n \n 72 | \n \n \n 21,055 | \n
| \n \n Net balance, on January 1, 2023 | \n \n \n 20,874 | \n \n \n 109 | \n \n \n 72 | \n \n \n 21,055 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (152) \n | \n \n \n 31 | \n \n \n 121 | \n \n \n - | \n
| \n \n Changes that relate to future service | \n \n \n \n \n (152) \n | \n \n \n 31 | \n \n \n 121 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n \n \n (17) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Changes that relate to current service | \n \n \n 4 | \n \n \n \n \n (15) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes that relate to past service | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n \n \n (148) \n | \n \n \n 16 | \n \n \n 104 | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 475 | \n \n \n - | \n \n \n - | \n \n \n 475 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (2,506) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,506) \n | \n
| \n \n Cash flows | \n \n \n \n \n (2,030) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,030) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n 170 | \n \n \n - | \n \n \n 1 | \n \n \n 172 | \n
| \n \n Other movements | \n \n \n 170 | \n \n \n - | \n \n \n 1 | \n \n \n 172 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 498 | \n \n \n 3 | \n \n \n 2 | \n \n \n 503 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Insurance contracts not measured under PAA - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 1,589 | \n \n \n \n \n (1,042) \n | \n \n \n \n \n (362) \n | \n \n \n 185 | \n
| \n \n Opening liabilities | \n \n \n 159,113 | \n \n \n 945 | \n \n \n 17,349 | \n \n \n 177,407 | \n
| \n \n Net opening balance, on January 1, 2024 | \n \n \n 157,524 | \n \n \n 1,987 | \n \n \n 17,711 | \n \n \n 177,222 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (9,656) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (9,656) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n \n \n (317) \n | \n \n \n 8,275 | \n \n \n 7,958 | \n
| \n \n Amortization of insurance acquisition cash flows | \n \n \n 553 | \n \n \n - | \n \n \n - | \n \n \n 553 | \n
| \n \n Losses (and reversal of losses) on onerous contracts | \n \n \n - | \n \n \n 1,118 | \n \n \n - | \n \n \n 1,118 | \n
| \n \n Insurance service expenses | \n \n \n 553 | \n \n \n 801 | \n \n \n 8,275 | \n \n \n 9,629 | \n
| \n \n Investment components | \n \n \n \n \n (5,506) \n | \n \n \n - | \n \n \n 5,506 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (14,609) \n | \n \n \n 801 | \n \n \n 13,781 | \n \n \n \n \n (27) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 11,924 | \n \n \n 62 | \n \n \n - | \n \n \n 11,986 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n \n \n (6,128) \n | \n \n \n \n \n (299) \n | \n \n \n \n \n (5,465) \n | \n \n \n \n \n (11,892) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n 8 | \n \n \n \n \n (94) \n | \n \n \n - | \n \n \n \n \n (85) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (34) \n | \n \n \n 14 | \n \n \n 17 | \n \n \n \n \n (3) \n | \n
| \n \n Other movements | \n \n \n 1 | \n \n \n - | \n \n \n \n \n (5) \n | \n \n \n \n \n (4) \n | \n
| \n \n Transfer (to)/from other headings | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 9,286 | \n \n \n 153 | \n \n \n 1,557 | \n \n \n 10,996 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 157,971 | \n \n \n 2,625 | \n \n \n 27,596 | \n \n \n 188,193 | \n
| \n \n Closing assets | \n \n \n 1,886 | \n \n \n \n \n (1,373) \n | \n \n \n \n \n (387) \n | \n \n \n 125 | \n
| \n \n Closing liabilities | \n \n \n 159,857 | \n \n \n 1,252 | \n \n \n 27,209 | \n \n \n 188,318 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Insurance contracts not measured under PAA - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 40 | \n \n \n \n \n (1) \n | \n \n \n \n \n (2) \n | \n \n \n 36 | \n
| \n \n Opening liabilities | \n \n \n 163,758 | \n \n \n 1,455 | \n \n \n 10,468 | \n \n \n 175,681 | \n
| \n \n Net opening balance, on January 1, 2023 | \n \n \n 163,719 | \n \n \n 1,456 | \n \n \n 10,470 | \n \n \n 175,645 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (10,195) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (10,195) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n \n \n (186) \n | \n \n \n 8,593 | \n \n \n 8,407 | \n
| \n \n Amortization of insurance acquisition cash flows | \n \n \n 558 | \n \n \n - | \n \n \n - | \n \n \n 558 | \n
| \n \n Losses (and reversal of losses) on onerous contracts | \n \n \n - | \n \n \n 1,084 | \n \n \n - | \n \n \n 1,084 | \n
| \n \n Adjustments to liabilities for incurred claims | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 9 | \n
| \n \n Insurance service expenses | \n \n \n 558 | \n \n \n 899 | \n \n \n 8,601 | \n \n \n 10,058 | \n
| \n \n Investment components | \n \n \n \n \n (4,834) \n | \n \n \n - | \n \n \n 4,834 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (14,471) \n | \n \n \n 898 | \n \n \n 13,436 | \n \n \n \n \n (137) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 17,262 | \n \n \n 81 | \n \n \n - | \n \n \n 17,343 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n \n \n (4,892) \n | \n \n \n \n \n (150) \n | \n \n \n \n \n (5,582) \n | \n \n \n \n \n (10,624) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n \n \n (347) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (347) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (1) \n | \n \n \n \n \n (211) \n | \n \n \n \n \n (133) \n | \n \n \n \n \n (345) \n | \n
| \n \n Other movements | \n \n \n 20 | \n \n \n - | \n \n \n - | \n \n \n 20 | \n
| \n \n Transfer (to)/from other headings | \n \n \n \n \n (514) \n | \n \n \n \n \n (33) \n | \n \n \n 36 | \n \n \n \n \n (512) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n \n \n (3,252) \n | \n \n \n \n \n (54) \n | \n \n \n \n \n (515) \n | \n \n \n \n \n (3,821) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 157,524 | \n \n \n 1,987 | \n \n \n 17,711 | \n \n \n 177,222 | \n
| \n \n Closing assets | \n \n \n 1,589 | \n \n \n \n \n (1,042) \n | \n \n \n \n \n (362) \n | \n \n \n 185 | \n
| \n \n Closing liabilities | \n \n \n 159,113 | \n \n \n 945 | \n \n \n 17,349 | \n \n \n 177,407 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Investment contracts with DPF - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Net balance, on January 1, 2024 | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (80) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (80) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 43 | \n \n \n 43 | \n
| \n \n Insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 43 | \n \n \n 43 | \n
| \n \n Investment components | \n \n \n \n \n (2,934) \n | \n \n \n - | \n \n \n 2,934 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (3,014) \n | \n \n \n - | \n \n \n 2,977 | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n 452 | \n \n \n - | \n \n \n \n \n (2,977) \n | \n \n \n \n \n (2,525) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 1,030 | \n \n \n - | \n \n \n - | \n \n \n 1,030 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
| \n | \n\n \n Remaining coverage | \n \n | \n\n | \n|
| \n \n Investment contracts with DPF - by type | \n \n \n Excluding loss component | \n \n \n Loss component | \n \n \n Incurred claims | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,055 | \n \n \n - | \n \n \n - | \n \n \n 21,055 | \n
| \n \n Net balance, on January 1, 2023 | \n \n \n 21,055 | \n \n \n - | \n \n \n - | \n \n \n 21,055 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (64) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (64) \n | \n
| \n \n Incurred claims and other insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 36 | \n \n \n 36 | \n
| \n \n Insurance service expenses | \n \n \n - | \n \n \n - | \n \n \n 36 | \n \n \n 36 | \n
| \n \n Investment components | \n \n \n \n \n (2,417) \n | \n \n \n - | \n \n \n 2,418 | \n \n \n - | \n
| \n \n Insurance service result | \n \n \n \n \n (2,481) \n | \n \n \n - | \n \n \n 2,453 | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Insurance finance (income) / expenses (P&L and OCI) \n | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n 423 | \n \n \n - | \n \n \n \n \n (2,453) \n | \n \n \n \n \n (2,030) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other movements | \n \n \n 172 | \n \n \n - | \n \n \n - | \n \n \n 172 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 503 | \n \n \n - | \n \n \n - | \n \n \n 503 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Insurance contracts not measured under PAA - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 475 | \n \n \n \n \n (286) \n | \n \n \n \n \n (4) \n | \n \n \n 185 | \n
| \n \n Opening liabilities | \n \n \n 166,036 | \n \n \n 3,251 | \n \n \n 8,120 | \n \n \n 177,407 | \n
| \n \n Net opening balance, on January 1, 2024 | \n \n \n 165,562 | \n \n \n 3,537 | \n \n \n 8,124 | \n \n \n 177,222 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (317) \n | \n \n \n \n \n (131) \n | \n \n \n 448 | \n \n \n - | \n
| \n \n Changes in estimates that result in (a reversal of) onerous contracts | \n \n \n 1,063 | \n \n \n 1 | \n \n \n - | \n \n \n 1,064 | \n
| \n \n New contracts issued \u2013 non-onerous | \n \n \n \n \n (648) \n | \n \n \n 102 | \n \n \n 546 | \n \n \n - | \n
| \n \n New contracts issued \u2013 onerous | \n \n \n 36 | \n \n \n 18 | \n \n \n - | \n \n \n 54 | \n
| \n \n Changes that relate to future service | \n \n \n 134 | \n \n \n \n \n (10) \n | \n \n \n 994 | \n \n \n 1,118 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (958) \n | \n \n \n \n \n (958) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (305) \n | \n \n \n - | \n \n \n \n \n (305) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 101 | \n \n \n - | \n \n \n - | \n \n \n 101 | \n
| \n \n Revenue recognized for incurred policyholder tax expenses | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Changes that relate to current service | \n \n \n 103 | \n \n \n \n \n (305) \n | \n \n \n \n \n (958) \n | \n \n \n \n \n (1,160) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Experience adjustments on claims incurred | \n \n \n 15 | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 14 | \n
| \n \n Changes that relate to past service | \n \n \n 15 | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 14 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n 252 | \n \n \n \n \n (315) \n | \n \n \n 36 | \n \n \n \n \n (27) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n General model | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n \n 2,693 | \n \n \n 178 | \n \n \n 225 | \n \n \n 3,096 | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n \n \n \n (1,910) \n | \n \n \n \n \n (11) \n | \n \n \n - | \n \n \n \n \n (1,921) \n | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n \n 121 | \n \n \n - | \n \n \n - | \n \n \n 121 | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 12,719 | \n \n \n - | \n \n \n - | \n \n \n 12,719 | \n
| \n \n Change in fulfilment value of products with direct participating features not recognized in CSM due to risk mitigation option | \n \n \n \n \n (2,029) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,029) \n | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 11,594 | \n \n \n 167 | \n \n \n 225 | \n \n \n 11,986 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 15,377 | \n \n \n - | \n \n \n - | \n \n \n 15,377 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (26,274) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (26,274) \n | \n
| \n \n Acquisition costs paid | \n \n \n \n \n (963) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (963) \n | \n
| \n \n Other | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (32) \n | \n
| \n \n Cash flows | \n \n \n \n \n (11,892) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (11,892) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n \n \n (128) \n | \n \n \n - | \n \n \n 43 | \n \n \n \n \n (85) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (14) \n | \n \n \n 6 | \n \n \n 6 | \n \n \n \n \n (3) \n | \n
| \n \n Other | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n Other movements | \n \n \n \n \n (147) \n | \n \n \n 6 | \n \n \n 48 | \n \n \n \n \n (92) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 10,242 | \n \n \n 224 | \n \n \n 529 | \n \n \n 10,996 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 175,611 | \n \n \n 3,618 | \n \n \n 8,964 | \n \n \n 188,193 | \n
| \n \n Closing assets | \n \n \n 452 | \n \n \n \n \n (323) \n | \n \n \n \n \n (5) \n | \n \n \n 125 | \n
| \n \n Closing liabilities | \n \n \n 176,063 | \n \n \n 3,295 | \n \n \n 8,959 | \n \n \n 188,318 | \n
| \n \n Insurance contracts not measured under PAA - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 100 | \n \n \n - | \n \n \n \n \n (64) \n | \n \n \n 36 | \n
| \n \n Opening liabilities | \n \n \n 163,381 | \n \n \n 3,436 | \n \n \n 8,865 | \n \n \n 175,681 | \n
| \n \n Net opening balance, on January 1, 2023 | \n \n \n 163,280 | \n \n \n 3,435 | \n \n \n 8,929 | \n \n \n 175,645 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (204) \n | \n \n \n 380 | \n \n \n \n \n (176) \n | \n \n \n - | \n
| \n \n Changes in estimates that result in (a reversal of) onerous contracts | \n \n \n 974 | \n \n \n 51 | \n \n \n - | \n \n \n 1,025 | \n
| \n \n New contracts issued \u2013 non-onerous | \n \n \n \n \n (563) \n | \n \n \n 90 | \n \n \n 473 | \n \n \n - | \n
| \n \n New contracts issued \u2013 onerous | \n \n \n 38 | \n \n \n 22 | \n \n \n - | \n \n \n 60 | \n
| \n \n Changes that relate to future service | \n \n \n 245 | \n \n \n 542 | \n \n \n 297 | \n \n \n 1,084 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (952) \n | \n \n \n \n \n (952) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (345) \n | \n \n \n - | \n \n \n \n \n (345) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 75 | \n \n \n - | \n \n \n - | \n \n \n 75 | \n
| \n \n Revenue recognized for incurred policyholder tax expenses | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n \n Changes that relate to current service | \n \n \n 60 | \n \n \n \n \n (345) \n | \n \n \n \n \n (952) \n | \n \n \n \n \n (1,238) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Experience adjustments on claims incurred | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n 17 | \n
| \n \n Changes that relate to past service | \n \n \n 17 | \n \n \n - | \n \n \n - | \n \n \n 17 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n 322 | \n \n \n 197 | \n \n \n \n \n (656) \n | \n \n \n \n \n (137) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n General model | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n \n 2,680 | \n \n \n 195 | \n \n \n 223 | \n \n \n 3,098 | \n
| \n \n Changes in interest rates and other financial assumptions | \n \n \n 1,573 | \n \n \n 14 | \n \n \n - | \n \n \n 1,587 | \n
| \n \n Revaluation of changes in non-financial assumptions and experience adjustments to current interest rates | \n \n \n 425 | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n 421 | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 13,730 | \n \n \n - | \n \n \n - | \n \n \n 13,730 | \n
| \n \n Change in fulfilment value of products with direct participating features not recognized in CSM due to risk mitigation option | \n \n \n \n \n (1,493) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,493) \n | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 16,915 | \n \n \n 205 | \n \n \n 223 | \n \n \n 17,343 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 14,203 | \n \n \n - | \n \n \n - | \n \n \n 14,203 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (23,862) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (23,862) \n | \n
| \n \n Acquisition costs paid | \n \n \n \n \n (936) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (936) \n | \n
| \n \n Other | \n \n \n \n \n (30) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (30) \n | \n
| \n \n Cash flows | \n \n \n \n \n (10,624) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (10,624) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n \n \n (283) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (59) \n | \n \n \n \n \n (347) \n | \n
| \n \n Transfers to disposal groups | \n \n \n \n \n (59) \n | \n \n \n \n \n (197) \n | \n \n \n \n \n (89) \n | \n \n \n \n \n (345) \n | \n
| \n \n Other | \n \n \n 41 | \n \n \n - | \n \n \n \n \n (21) \n | \n \n \n 20 | \n
| \n \n Transfer (to)/from other headings | \n \n \n \n \n (511) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (512) \n | \n
| \n \n Other movements | \n \n \n \n \n (811) \n | \n \n \n \n \n (203) \n | \n \n \n \n \n (169) \n | \n \n \n \n \n (1,184) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n \n \n (3,520) \n | \n \n \n \n \n (98) \n | \n \n \n \n \n (203) \n | \n \n \n \n \n (3,821) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 165,562 | \n \n \n 3,537 | \n \n \n 8,124 | \n \n \n 177,222 | \n
| \n \n Closing assets | \n \n \n 475 | \n \n \n \n \n (286) \n | \n \n \n \n \n (4) \n | \n \n \n 185 | \n
| \n \n Closing liabilities | \n \n \n 166,036 | \n \n \n 3,251 | \n \n \n 8,120 | \n \n \n 177,407 | \n
| \n \n Investment contracts with DPF - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n \n Net balance, on January 1, 2024 | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (70) \n | \n \n \n \n \n (7) \n | \n \n \n 76 | \n \n \n - | \n
| \n \n Changes that relate to future service | \n \n \n \n \n (70) \n | \n \n \n \n \n (7) \n | \n \n \n 76 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n \n \n (33) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (14) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 11 | \n
| \n \n Changes that relate to current service | \n \n \n 11 | \n \n \n \n \n (14) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes that relate to past service | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n \n \n (59) \n | \n \n \n \n \n (21) \n | \n \n \n 43 | \n \n \n \n \n (37) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 470 | \n \n \n - | \n \n \n - | \n \n \n 470 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (2,995) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,995) \n | \n
| \n \n Cash flows | \n \n \n \n \n (2,525) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,525) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Other movements | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 1,015 | \n \n \n 6 | \n \n \n 10 | \n \n \n 1,030 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2024 | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n
| \n \n Investment contracts with DPF - by component | \n \n \n Best estimate liability | \n \n \n Risk adjustment | \n \n \n Contractual service margin | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 20,874 | \n \n \n 109 | \n \n \n 72 | \n \n \n 21,055 | \n
| \n \n Net balance, on January 1, 2023 | \n \n \n 20,874 | \n \n \n 109 | \n \n \n 72 | \n \n \n 21,055 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust contractual service margin | \n \n \n \n \n (152) \n | \n \n \n 31 | \n \n \n 121 | \n \n \n - | \n
| \n \n Changes that relate to future service | \n \n \n \n \n (152) \n | \n \n \n 31 | \n \n \n 121 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Earnings released from contractual service margin | \n \n \n - | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n \n \n (17) \n | \n
| \n \n Release of risk adjustment | \n \n \n - | \n \n \n \n \n (15) \n | \n \n \n - | \n \n \n \n \n (15) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n
| \n \n Changes that relate to current service | \n \n \n 4 | \n \n \n \n \n (15) \n | \n \n \n \n \n (17) \n | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Changes that relate to past service | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n \n \n (148) \n | \n \n \n 16 | \n \n \n 104 | \n \n \n \n \n (28) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets of products with direct participating features | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 1,921 | \n \n \n - | \n \n \n - | \n \n \n 1,921 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 475 | \n \n \n - | \n \n \n - | \n \n \n 475 | \n
| \n \n Claims, benefits and expenses paid | \n \n \n \n \n (2,506) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,506) \n | \n
| \n \n Cash flows | \n \n \n \n \n (2,030) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,030) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n 170 | \n \n \n - | \n \n \n 1 | \n \n \n 172 | \n
| \n \n Other movements | \n \n \n 170 | \n \n \n - | \n \n \n 1 | \n \n \n 172 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n 498 | \n \n \n 3 | \n \n \n 2 | \n \n \n 503 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net closing balance, on December 31, 2023 | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n \n Closing assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Capital funding | \n \n \n 1,533 | \n \n \n 763 | \n
| \n \n Operational funding | \n \n \n 1,480 | \n \n \n 1,593 | \n
| \n \n On December 31 | \n \n \n 3,013 | \n \n \n 2,356 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 37 | \n \n \n 32 | \n
| \n \n Non-current | \n \n \n 2,976 | \n \n \n 2,325 | \n
| \n \n On December 31 | \n \n \n 3,013 | \n \n \n 2,356 | \n
| \n | \n\n | \n\n | \n
| \n \n Fair value of borrowings | \n \n \n 3,076 | \n \n \n 2,459 | \n
Aegon\u2019s borrowings are defined separately as capital funding and operational funding. Capital funding includes debt securities that are issued for general corporate purposes and for capitalizing its business units. Capital funding is part of the Company\u2019s total capitalization that is used for financing its subsidiaries and the cash held at the holding company. Operational funding includes debt securities that are issued for financing of dedicated pools of assets. These assets are either legally segregated or tracked as separate portfolios.
The difference between the contractually required payment at the maturity date and the carrying amount of the borrowings amounted to EUR 8 million positive (2023: EUR 6 million positive).
\nA detailed composition of capital funding is included in the following table:
| \n \n \n \n (sorted at maturity) \n | \n \n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n USD 760 million Senior Unsecured Notes | \n \n \n 5.500% | \n \n \n Semi-annually, April 16 | \n \n \n 2024 / 27 | \n \n \n 731 | \n \n \n - | \n
| \n \n GBP 250 million Medium-Term Notes | \n \n \n 6.125% | \n \n \n December 15 | \n \n \n 1999 / 31 | \n \n \n 301 | \n \n \n 287 | \n
| \n \n GBP 400 million Senior Unsecured Notes | \n \n \n 6.625% | \n \n \n Semi-annually, December 16 | \n \n \n 2009 / 39 | \n \n \n 480 | \n \n \n 457 | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n \n 20 | \n \n \n 18 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 1,533 | \n \n \n 763 | \n
In 2024, capital funding increased by EUR 770 million mainly due to the issuance of EUR 700 million (USD 760 million) of senior unsecured notes with a fixed coupon of 5.5% and a tenor of three years. Net proceeds from this issuance were used for\u00a0general corporate purposes, including the redemption of the EUR 700 million of fixed-to-floating subordinated notes. The\u00a0notes were issued by Aegon Funding Company LLC (AFC) and was guaranteed on a senior unsecured basis by Aegon\u00a0Ltd. The\u00a0maturity date is on April 16, 2027.
These loans are considered senior debt in calculating financial leverage in note 37 Capital management and solvency.
\nIn 2024, the operational funding decreased by EUR 113 million mainly due to the paydown of Federal Home Loan Bank (FHLB) borrowings. This borrowing program is part of Aegon\u2019s asset\u2013liability management strategy.
| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n FHLB Secured borrowings 1 | \n \n \n Fixed | \n \n \n Quarterly | \n \n \n 2022 / 26 | \n \n \n 1,449 | \n \n \n 1,562 | \n
| \n \n North Westerly VI Note 1 | \n \n \n Floating | \n \n \n Quarterly | \n \n \n 2020 / 32 | \n \n \n 15 | \n \n \n 15 | \n
| \n \n North Westerly VII Note 1 | \n \n \n Floating | \n \n \n Quarterly | \n \n \n 2021 / 34 | \n \n \n 16 | \n \n \n 16 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 1,480 | \n \n \n 1,593 | \n
| \n \n Undrawn committed borrowing facilities: | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Floating-rate | \n \n | \n\n | \n
| \n \n - Expiring beyond one year | \n \n \n 1,544 | \n \n \n 2,623 | \n
| \n \n On December 31 | \n \n \n 1,544 | \n \n \n 2,623 | \n
These facilities were reduced as a result of lower contingent liquidity needs following the combination of Aegon\u2019s Dutch insurance and banking activities with a.s.r.
There were no defaults or breaches of conditions during the period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1076m1054p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 83 | \n \n \n 100 | \n
| \n \n Additional provisions | \n \n \n 45 | \n \n \n 77 | \n
| \n \n Disposal of a business | \n \n \n \n \n (1) \n | \n \n \n \n \n (13) \n | \n
| \n \n Unused amounts reversed through the income statement | \n \n \n \n \n (2) \n | \n \n \n \n \n (25) \n | \n
| \n \n Used during the year | \n \n \n \n \n (32) \n | \n \n \n \n \n (54) \n | \n
| \n \n Net exchange differences | \n \n \n 5 | \n \n \n \n \n (2) \n | \n
| \n \n On December 31 | \n \n \n 98 | \n \n \n 83 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 91 | \n \n \n 78 | \n
| \n \n Non-current | \n \n \n 7 | \n \n \n 5 | \n
The provisions on December 31, 2024 consisted of litigation provisions of EUR 67 million (2023: EUR 65 million)\u00a0mainly related to a settlement in the United States in a case alleging mischaracterization of agents as independent contractors instead of employees\u00a0(see note\u00a039 Commitments and contingencies), restructuring provisions of EUR 7 million (2023:\u00a0EUR\u00a09\u00a0million)\u00a0and other provisions of EUR 24 million (2023: EUR 9 million).
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Retirement benefit plans | \n \n \n 269 | \n \n \n 368 | \n
| \n \n Other post-employment benefit plans | \n \n \n 189 | \n \n \n 178 | \n
| \n \n Total defined benefit plans | \n \n \n 457 | \n \n \n 546 | \n
| \n | \n\n | \n\n | \n
| \n \n Retirement benefit plans in surplus | \n \n \n 110 | \n \n \n 103 | \n
| \n \n Reimbursement rights | \n \n \n 9 | \n \n \n 20 | \n
| \n \n Total defined benefit assets | \n \n \n 119 | \n \n \n 123 | \n
| \n | \n\n | \n\n | \n
| \n \n Retirement benefit plans in deficit | \n \n \n 388 | \n \n \n 491 | \n
| \n \n Other post-employment benefit plans in deficit | \n \n \n 189 | \n \n \n 178 | \n
| \n \n Total defined benefit liabilities | \n \n \n 576 | \n \n \n 669 | \n
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n \n Movements during the year in defined benefit plans | \n \n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n \n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n
| \n \n On January 1 | \n \n \n 368 | \n \n \n 178 | \n \n \n 546 | \n \n \n 225 | \n \n \n 184 | \n \n \n 409 | \n
| \n \n Defined benefit expenses | \n \n \n 42 | \n \n \n 15 | \n \n \n 57 | \n \n \n 113 | \n \n \n 19 | \n \n \n 132 | \n
| \n \n Remeasurements of defined benefit plans | \n \n \n 19 | \n \n \n \n \n (5) \n | \n \n \n 15 | \n \n \n 167 | \n \n \n \n \n (7) \n | \n \n \n 160 | \n
| \n \n Contributions paid | \n \n \n \n \n (148) \n | \n \n \n - | \n \n \n \n \n (148) \n | \n \n \n \n \n (83) \n | \n \n \n - | \n \n \n \n \n (83) \n | \n
| \n \n Benefits paid | \n \n \n \n \n (28) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (40) \n | \n \n \n \n \n (39) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (51) \n | \n
| \n \n Net exchange differences | \n \n \n 16 | \n \n \n 12 | \n \n \n 27 | \n \n \n \n \n (15) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (21) \n | \n
| \n \n On December 31 | \n \n \n 269 | \n \n \n 189 | \n \n \n 457 | \n \n \n 368 | \n \n \n 178 | \n \n \n 546 | \n
The amounts recognized in the statement of financial position are determined as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n | \n\n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n \n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n
| \n \n Present value of wholly or partly funded obligations | \n \n \n 3,140 | \n \n \n - | \n \n \n 3,140 | \n \n \n 3,165 | \n \n \n - | \n \n \n 3,165 | \n
| \n \n Fair value of plan assets | \n \n \n \n \n (3,123) \n | \n \n \n - | \n \n \n \n \n (3,123) \n | \n \n \n \n \n (3,051) \n | \n \n \n - | \n \n \n \n \n (3,051) \n | \n
| \n \n Fair value of reimbursement rights | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n \n \n (20) \n | \n \n \n 2 | \n \n \n \n \n (19) \n | \n
| \n | \n\n \n 7 | \n \n \n - | \n \n \n 7 | \n \n \n 93 | \n \n \n 2 | \n \n \n 95 | \n
| \n \n Present value of wholly unfunded obligations | \n \n \n 262 | \n \n \n 189 | \n \n \n 450 | \n \n \n 275 | \n \n \n 176 | \n \n \n 451 | \n
| \n \n On December 31 | \n \n \n 269 | \n \n \n 189 | \n \n \n 457 | \n \n \n 368 | \n \n \n 178 | \n \n \n 546 | \n
The fair value of Aegon\u2019s 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 2024 and 2023.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||||
| \n \n Defined benefit expenses | \n \n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n \n \n Retirement benefit plans | \n \n \n Other post-employment benefit plans | \n \n \n Total | \n
| \n \n Current year service cost | \n \n \n 32 | \n \n \n 7 | \n \n \n 39 | \n \n \n 38 | \n \n \n 6 | \n \n \n 44 | \n
| \n \n \n \n Net interest on the net defined benefit liability (asset) \n | \n \n \n 9 | \n \n \n 9 | \n \n \n 18 | \n \n \n 10 | \n \n \n 9 | \n \n \n 19 | \n
| \n \n Past service cost | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n 4 | \n \n \n 69 | \n
| \n \n Total defined benefit expenses | \n \n \n 42 | \n \n \n 15 | \n \n \n 57 | \n \n \n 113 | \n \n \n 19 | \n \n \n 132 | \n
Defined benefit expenses are included in Post-employment benefit costs in note\u00a013 Other operating expenses.
| \n \n Movements during the year of the present value of the defined benefit obligations | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 3,616 | \n \n \n 3,491 | \n
| \n \n Current year service cost | \n \n \n 39 | \n \n \n 46 | \n
| \n \n Interest expenses | \n \n \n 173 | \n \n \n 172 | \n
| \n \n Remeasurements of the defined benefit obligations: | \n \n | \n\n | \n
| \n \n - Actuarial gains and losses arising from changes in demographic assumptions | \n \n \n 6 | \n \n \n 53 | \n
| \n \n - Actuarial gains and losses arising from changes in financial assumptions | \n \n \n \n \n (217) \n | \n \n \n 61 | \n
| \n \n Past service cost | \n \n \n - | \n \n \n 109 | \n
| \n \n Benefits paid | \n \n \n \n \n (237) \n | \n \n \n \n \n (252) \n | \n
| \n \n Net exchange differences | \n \n \n 208 | \n \n \n \n \n (65) \n | \n
| \n \n Other | \n \n \n 2 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 3,590 | \n \n \n 3,616 | \n
| \n \n Movements during the year in plan assets for retirement benefit plans | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 3,051 | \n \n \n 3,083 | \n
| \n \n \n \n Interest income (based on discount rate) \n | \n \n \n 152 | \n \n \n 153 | \n
| \n \n \n \n Remeasurements of the net defined liability (asset) \n | \n \n \n \n \n (208) \n | \n \n \n \n \n (21) \n | \n
| \n \n Contributions by employer | \n \n \n 148 | \n \n \n 83 | \n
| \n \n Benefits paid | \n \n \n \n \n (200) \n | \n \n \n \n \n (203) \n | \n
| \n \n Net exchange differences | \n \n \n 180 | \n \n \n \n \n (44) \n | \n
| \n \n On December 31 | \n \n \n 3,123 | \n \n \n 3,051 | \n
| \n | \n\n \n 2024 | \n \n | \n\n \n 2023 | \n \n | \n||||
| \n \n Breakdown of plan assets for retirement benefit plans | \n \n \n Quoted | \n \n \n Unquoted | \n \n \n Total | \n \n \n in % of total plan assets | \n \n \n Quoted | \n \n \n Unquoted | \n \n \n Total | \n \n \n in % of total plan assets | \n
| \n \n Debt instrument | \n \n \n 594 | \n \n \n 275 | \n \n \n 869 | \n \n \n 28% | \n \n \n 424 | \n \n \n 177 | \n \n \n 601 | \n \n \n 20% | \n
| \n \n Derivatives | \n \n \n - | \n \n \n \n \n (183) \n | \n \n \n \n \n (183) \n | \n \n \n -6% | \n \n \n - | \n \n \n \n \n (143) \n | \n \n \n \n \n (143) \n | \n \n \n -5% | \n
| \n \n Investment funds | \n \n \n - | \n \n \n 2,027 | \n \n \n 2,027 | \n \n \n 65% | \n \n \n - | \n \n \n 2,142 | \n \n \n 2,142 | \n \n \n 70% | \n
| \n \n Structured securities | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0% | \n \n \n - | \n \n \n 200 | \n \n \n 200 | \n \n \n 7% | \n
| \n \n Other | \n \n \n - | \n \n \n 410 | \n \n \n 410 | \n \n \n 13% | \n \n \n - | \n \n \n 252 | \n \n \n 252 | \n \n \n 8% | \n
| \n \n On December 31 | \n \n \n 594 | \n \n \n 2,529 | \n \n \n 3,123 | \n \n \n 100% | \n \n \n 424 | \n \n \n 2,627 | \n \n \n 3,051 | \n \n \n 100% | \n
| \n \n Movements during the year of the fair value of the reimbursement rights | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 20 | \n \n \n - | \n
| \n \n Current year service cost | \n \n \n - | \n \n \n 2 | \n
| \n \n Interest expenses | \n \n \n 3 | \n \n \n - | \n
| \n \n Remeasurements of the defined benefit obligations: | \n \n | \n\n | \n
| \n \n - Actuarial gains and losses arising from changes in financial assumptions | \n \n \n \n \n (18) \n | \n \n \n \n \n (25) \n | \n
| \n \n Past service cost | \n \n \n - | \n \n \n 40 | \n
| \n \n Benefits paid | \n \n \n 4 | \n \n \n 2 | \n
| \n \n Other | \n \n \n 2 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 9 | \n \n \n 20 | \n
Defined benefit plans are mainly operated by Transamerica, Aegon UK and Aegon Employees Netherlands. The following sections contain a general description of the plans in each of these subsidiaries and a summary of the principal actuarial assumptions applied in determining the value of defined benefit plans. Businesses included in all other operating segments mostly operate defined contribution plans. Please refer to note\u00a013 Other operating expenses for a complete overview of employee expenses including the total defined contribution expenses.
\nTransamerica has defined benefit plans covering substantially all its employees that are qualified under the Internal Revenue Service Code, including all requirements for minimum funding levels. The defined benefit plans are governed by the Board of Directors of Transamerica Corporation. The Board of Directors 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\u2019s 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 have a deficit of EUR 126 million on December 31, 2024 (2023: EUR 216 million deficit).
Investment strategies are established based on asset and liability studies by actuaries which are updated as they consider appropriate. These studies, along with the investment policy, assist to develop the appropriate investment criteria for the plan, including asset allocation mix, return objectives, investment risk and time horizon, benchmarks and performance standards, and restrictions and prohibitions. The overall goal is to maximize total investment returns to provide sufficient funding for the present and anticipated future benefit obligations within the constraints of a prudent level of portfolio risk and diversification. Aegon believes that the asset allocation is an important factor in determining the long-term performance of the plan. The plan uses multiple asset classes as well as sub-classes to meet the asset allocation and other requirements of the investment policy, which minimizes investment risk. From time to time the actual asset allocation may deviate from the desired asset allocation ranges due to different market performance among the various asset categories. If it is determined that rebalancing is required, future additions and withdrawals will be used to bring the allocation to the desired level.
Transamerica maintains minimum required funding levels as set forth by the Internal Revenue Code. If contributions are required, the funding would be provided from the Company\u2019s general account assets. Pension plan contributions were not required for Transamerica in 2024 or 2023. However, Transamerica Corporation made a pension plan contribution of EUR\u00a048\u00a0million in March 2024 and an additional EUR 97 million in September, 2024 that was over and above the minimum required funding levels as set forth by the Internal Revenue Code. In 2023, Transamerica Corporation made a pension plan contribution of EUR 45 million.
Transamerica\u00a0also sponsors supplemental retirement plans to provide senior management with benefits in excess of normal retirement benefits. The plans are unfunded and are not qualified under the Internal Revenue Code. The supplemental retirement plans are governed by Transamerica Corporation, and overseen by the Compensation Committee of the Board of Directors of Transamerica Corporation. Transamerica Corporation, or the Compensation Committee of the Board of Directors has the\u00a0full power and discretion to apply all the plan\u2019s provisions, including such responsibilities as, but not limited to, interpret the plan provisions, to make factual determinations under the plan, to determine plan benefits, and to comply with any statutory reporting and disclosure requirements. The benefits are based on years of service and the employee\u2019s eligible annual compensation. The plans provide benefits based on a traditional final average formula or a cash balance formula (which\u00a0defines the accrued benefit in terms of a stated account balance), depending on the age and service of the plan participant. The company funds the benefit payments of the supplemental retirement plans from its general account assets. The unfunded amount related to these plans, for which a liability has been recorded, was EUR 164 million (2023:\u00a0EUR\u00a0174\u00a0million unfunded).
Transamerica\u00a0 provides health care benefits to retired employees through continuation of coverage primarily in self-funded plans, and partly in fully insured plans, which are classified as unfunded per IAS 19 financial guidance. The postretirement health care benefits under the Plans are administered by Transamerica Corporation, which has delegated the claims administration to third-party administrators. Transamerica\u00a0maintains two plans which provide continuation of coverage for retiree medical benefits. For each plan, Transamerica\u00a0 has the fiduciary responsibility to administer the plan in accordance with its terms, and decides questions related to eligibility and determines plan provisions and benefit amounts.
Under the Employee Retirement Income Security Act (ERISA), Transamerica\u00a0has the fiduciary responsibility to monitor the\u00a0quality of services provided by the third-party claims administrator and to replace the third-party administrator if needed. In\u00a0addition, Transamerica\u00a0has the fiduciary obligation to interpret the provisions of the plans, and to comply with any statutory reporting and disclosure requirements. Finally, Transamerica\u00a0reviews the terms of the plans and makes changes to the plans if\u00a0and when appropriate. Transamerica\u00a0funds the benefit payments or premium payments of the post-retirement health care plans from its general account assets. The post-retirement health benefit liability amounted to EUR 190 million (2023:\u00a0EUR\u00a0176\u00a0million).
The weighted average duration of the defined benefit obligation is 8.0 years (2023: 9.0\u00a0years).
The principal actuarial assumptions that apply for the year ended December 31 are as follows:
| \n \n Actuarial assumptions used to determine defined benefit obligations at year-end | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n Mortality | \n \n \n US mortality | \n \n \n US mortality | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n Discount rate 3 | \n \n \n 5.59%/5.51% | \n \n \n 5.00%/4.93% | \n
| \n \n Salary increase rate | \n \n \n 4.00% | \n \n \n 4.00% | \n
| \n \n Health care trend rate | \n \n \n 6.90% | \n \n \n 6.80% | \n
The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions would have the following effects on the defined benefit obligation per year-end:
| \n | \n\n \n Estimated approximate effects on the defined benefit obligation | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n 10% increase in mortality rates | \n \n \n \n \n (46) \n | \n \n \n \n \n (47) \n | \n
| \n \n 10% decrease in mortality rates | \n \n \n 51 | \n \n \n 53 | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n 100 basis points increase in discount rate | \n \n \n \n \n (183) \n | \n \n \n \n \n (205) \n | \n
| \n \n 100 basis points decrease in discount rate | \n \n \n 232 | \n \n \n 250 | \n
| \n \n 100 basis points increase in salary increase rate | \n \n \n 4 | \n \n \n 5 | \n
| \n \n 100 basis points decrease in salary increase rate | \n \n \n \n \n (4) \n | \n \n \n \n \n (4) \n | \n
| \n \n 100 basis points increase in health care trend rate | \n \n \n 12 | \n \n \n 10 | \n
| \n \n 100 basis points decrease in health care trend rate | \n \n \n \n \n (10) \n | \n \n \n \n \n (9) \n | \n
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognized within the statement of financial position.
| \n | \n\n \n Target allocation of plan assets for retirement benefit plans for the next annual period is: | \n
| \n \n Equity instruments | \n \n \n 2%-4% | \n
| \n \n Debt instruments | \n \n \n 80%-90% | \n
| \n \n Other | \n \n \n 8%-16% | \n
Aegon UK operated a defined benefit pension scheme providing benefits for staff based on final pensionable salary and years of service. The scheme closed to new entrants a number of years ago and closed to future accrual on March 31, 2013. Aegon\u00a0UK now offers a defined contribution pension scheme to all employees.
The pension scheme is administered separately from Aegon UK and is governed by Trustees, who are required to act in the best interests of the pension scheme members.
The pension scheme Trustees are required to carry out triennial valuations of the scheme\u2019s funding position, with the latest valuation being on September\u00a030, 2022. As part of this triennial valuation process, a schedule of contributions is agreed between the Trustees and Aegon UK in accordance with UK pensions legislation and guidance issued by the Pensions Regulator in the United Kingdom. The schedule of contributions includes deficit reduction contributions to clear any scheme deficit. Under IAS 19, the defined benefit plan has a surplus of EUR 95 million on December 31, 2024 (2023: EUR 103 million surplus).\u00a0During 2024, EUR 10 million (2023: EUR 37 million) of contributions were paid into the scheme.
The investment strategy for the scheme is determined by the trustees in consultation with Aegon UK. Currently 12% of assets are invested in growth assets (i.e. primarily equities) and 88% are income and liability driven investments where the investments are a portfolio of fixed interest and inflation-linked bonds and related derivatives, selected to broadly match the\u00a0interest rate and inflation profile of liabilities.
Under the scheme rules, pensions in payment increase in line with the UK Retail Price Index, and deferred benefits increase in line with the UK Consumer Price Index. The pension scheme is therefore exposed to UK inflation changes as well as interest rate risks, investment returns, and changes in the life expectancy of pensioners.
The scheme holds three buy-in policies in the name of the Trustee to cover full scheme benefits for a group of pensioners. The\u00a0liabilities (and matching assets) calculated on the year end assumptions has been included in the funded position as at December 31, 2024.
The weighted average duration of the defined benefit obligation is 13.5 years (2023: 14.9 years).
The principal actuarial assumptions that apply for the year ended December 31 are as follows:
| \n \n Actuarial assumptions used to determine defined benefit obligations at year-end | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n Mortality | \n \n \n UK mortality table 1 | \n \n \n UK mortality table 2 | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n Discount rate | \n \n \n 5.58% | \n \n \n 4.79% | \n
| \n \n Price inflation | \n \n \n 3.19% | \n \n \n 3.10% | \n
The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions would have the following effects on the defined benefit obligation per year-end:
| \n | \n\n \n Estimated approximate effects on the defined benefit obligation | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n 10% increase in mortality rates | \n \n \n \n \n (21) \n | \n \n \n \n \n (20) \n | \n
| \n \n 10% decrease in mortality rates | \n \n \n 23 | \n \n \n 23 | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n 100 basis points increase in discount rate | \n \n \n \n \n (114) \n | \n \n \n \n \n (131) \n | \n
| \n \n 100 basis points decrease in discount rate | \n \n \n 142 | \n \n \n 166 | \n
| \n \n 100 basis points increase in price inflation | \n \n \n 50 | \n \n \n 62 | \n
| \n \n 100 basis points decrease in price inflation | \n \n \n \n \n (95) \n | \n \n \n \n \n (128) \n | \n
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognized within the statement of financial position.
| \n | \n\n \n Target allocation of plan assets for retirement benefit plans for the next annual period is: | \n
| \n \n Equity instruments | \n \n \n 11.5% | \n
| \n \n Debt instruments | \n \n \n 88.5% | \n
From July 1, 2023, following the transaction with a.s.r., employees of Aegon located in the Netherlands are employed by Aegon Employees Netherlands B.V. (AEN), an Aegon subsidiary included in the Holdings segment. AEN offers a defined contribution pension scheme to all employees in the Netherlands.
Until July 1, 2023, Aegon Nederland N.V. (legally merged with ASR Nederland N.V. on October 1, 2023 and therefore hereafter referred to as a.s.r.) was the employer of the employees of Aegon located in the Netherlands and operated a closed defined benefit pension plan under a pension contract. As of January 1, 2020, the defined benefit pension plan is closed for new members and there will be no further accrual of benefits to existing members. Entitlements before January 1, 2020, will remain unchanged and the indexation for those accruals will remain in force. The pension contract was updated as AEN was added as an employer upon the date of the transfer of employees to AEN.
The defined benefit plans cover retirement benefits, disability, death, and survivor pensions and the defined benefit obligation amounts to EUR 90 million on December 31, 2024 (December 31, 2023: EUR 90 million). The defined benefit obligation is backed by investments owned by a.s.r. The obligation of a.s.r. to fund the defined benefit obligation through these investments is reported as a reimbursement right. The average remaining duration of the defined benefits obligation is 20.8 years (2023: 21.9 years).
Also included in the reimbursement rights is the present value of the expected guaranteed premiums and management fees to be paid to a.s.r. by AEN. The present value as of December 31, 2024 amounts to EUR 80 million (December 31, 2023: EUR 69 million), discounted at a rate of 3.51% (2023: 3.42%).\u00a0
The liabilities related to other post-employment benefit plans, consisting of former Board of Directors unconditional indexation, jubilee and mortgage discount liabilities, are wholly unfunded and amount to EUR 4 million as of December 31, 2024 (December 31, 2023: EUR 5 million). The weighted average duration of the other post-employment benefit plans is\u00a011.4 years (2023: 12.0 years).\u00a0
The principal actuarial assumptions that apply for the year-ended December 31 are as follows:
| \n \n Actuarial assumptions used to determine defined benefit obligations at year-end | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n Mortality | \n \n \n Company specific based on Projections Life Table 2024 | \n \n \n AEGON 2023 1 | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n Discount rate | \n \n \n 3.51% | \n \n \n 3.42% | \n
| \n \n Price inflation | \n \n \n 1.99% | \n \n \n 2.36% | \n
The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions of the retirement benefit plan would have the following effects per year-end:
| \n | \n\n \n Estimated approximate effects on the defined benefit obligation | \n |
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n
| \n \n 10% increase in mortality rates | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n
| \n \n 10% decrease in mortality rates | \n \n \n 1 | \n \n \n 1 | \n
| \n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n
| \n \n 100 basis points increase in discount rate | \n \n \n \n \n (13) \n | \n \n \n \n \n (14) \n | \n
| \n \n 100 basis points decrease in discount rate | \n \n \n 17 | \n \n \n 18 | \n
The above sensitivity analysis is based on a change in one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit obligation recognized within the statement of financial position.
\nBusinesses included in all other operating segments mostly operate defined contribution plans. Please see note\u00a013 Other operating expenses for the employee expenses regarding these contribution plans.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5753m3795p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 83 | \n \n \n 100 | \n
| \n \n Additional provisions | \n \n \n 45 | \n \n \n 77 | \n
| \n \n Disposal of a business | \n \n \n \n \n (1) \n | \n \n \n \n \n (13) \n | \n
| \n \n Unused amounts reversed through the income statement | \n \n \n \n \n (2) \n | \n \n \n \n \n (25) \n | \n
| \n \n Used during the year | \n \n \n \n \n (32) \n | \n \n \n \n \n (54) \n | \n
| \n \n Net exchange differences | \n \n \n 5 | \n \n \n \n \n (2) \n | \n
| \n \n On December 31 | \n \n \n 98 | \n \n \n 83 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 91 | \n \n \n 78 | \n
| \n \n Non-current | \n \n \n 7 | \n \n \n 5 | \n
The provisions on December 31, 2024 consisted of litigation provisions of EUR 67 million (2023: EUR 65 million)\u00a0mainly related to a settlement in the United States in a case alleging mischaracterization of agents as independent contractors instead of employees\u00a0(see note\u00a039 Commitments and contingencies), restructuring provisions of EUR 7 million (2023:\u00a0EUR\u00a09\u00a0million)\u00a0and other provisions of EUR 24 million (2023: EUR 9 million).
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Guarantees | \n \n \n 918 | \n \n \n 773 | \n
| \n \n Other guarantees | \n \n \n 6 | \n \n \n 7 | \n
Guarantees include those guarantees associated with the sale of investments in low-income housing tax credit partnerships in the United States, which can be called upon if there is a deficiency in the tax benefits delivered to the investor or if Aegon is in default under a material provision of the contract.\u00a0Standby letters of credit amounts reflected above are the liquidity commitment notional amounts. In addition to the guarantees shown in the table, guarantees have been given for the fulfillment of contractual obligations such as investment mandates related to investment funds.
The amount of collateral on financial guarantees is EUR 0 million on December 31, 2024 (2023: EUR 0 million), while other guarantees have EUR 1 million cash collateral at the end of 2024 (2023: EUR 1 million).
\nAegon faces significant risks of litigation as well as regulatory exams and investigations and actions relating to its and its subsidiaries\u2019 businesses. Aegon is also subject to compliance with regulations applicable to it as a corporate entity.
Due to the geographic spread of its business, Aegon Group may be subject to tax audits or litigation in various jurisdictions. Although uncertainties are provided for adequately in the tax position, the ultimate outcome of tax audits or litigation may result in an outcome that differs from the amounts provided for.
Insurance companies and their affiliated regulated entities are routinely subject to litigation, investigation and regulatory activity by various governmental and enforcement authorities, individual claimants, policyholder advocate groups and third parties in the jurisdictions in which Aegon does business, including the United States and the United Kingdom. These actions may involve issues including, but not limited to, employment or distribution relationships; operational and internal controls and processes; investment returns; sales practices; transparency and adequacy of product disclosures including regarding initial costs, ongoing costs and costs due on policy surrender as well as changes to costs over time; environmental and climate change related matters; competition and antitrust matters; data privacy; information security; intellectual property; and anti-money laundering, anti-bribery and economic sanctions compliance.
Over time, Aegon has made a number of acquisitions and divestments around the world, including in the Netherlands, Central and Eastern Europe, the United States and the United Kingdom. Acquisitions and divestments involve risks, including the risk of losses resulting from claims or litigation related to contractual terms such as representations, warranties and indemnifications.
Government and regulatory investigations may result in the institution of administrative, injunctive or other proceedings and/or\u00a0the imposition of monetary fines, penalties and/or disgorgement as well as other remedies, sanctions, damages and restitutionary amounts. Regulators may also seek changes to the way Aegon operates. In some cases, Aegon subsidiaries have modified business practices in response to inquiries.
Customers of certain Aegon products bear significant investment risks with respect to those products, which are affected by fluctuations in equity markets as well as interest rate movements. When investment returns disappoint, are volatile, or change due to changes in the market or other relevant conditions, customers may threaten or bring litigation against Aegon. Disputes and investigations initiated by governmental entities and private parties may lead to orders or settlements including payments or changes to business practices even if Aegon believes the underlying claims are without merit.\u00a0
The existence of potential claims may remain unknown for long periods of time after the events giving rise to such claims. Determining the likelihood of exposure to Aegon and the extent of any such exposure may not be possible for long periods of\u00a0time after Aegon becomes aware of such potential claims. Litigation exposure may develop over long periods of time; once litigation is initiated, it may be protracted and subject to multiple levels of appeal, which can lead to significant costs of defense, adverse publicity and other constraints.
In some jurisdictions, plaintiffs may seek recovery of very large or indeterminate amounts under claims of bad faith, which can\u00a0result in tort, punitive and/or statutory damages. Damages alleged may not be quantifiable or supportable or may have no relationship to economic losses or final awards. As a result, Aegon cannot predict the effect of litigation, investigations or other actions on its business.\u00a0
Separate from financial loss, litigation, regulatory action, legislative changes or changes in public opinion may require Aegon to change its business practices, which could have a material adverse impact on Aegon\u2019s businesses, results of operations, cash flows and financial position.
\nA US based Aegon subsidiary is defending against a putative class action alleging that it improperly failed to pay bonuses in a block of universal life policies. The company believed the claims were barred by a previous settlement and the initial trial court agreed; however, a court of appeals disagreed with this position and the case is now proceeding in federal court in California. While the company is continuing to assess its potential exposure and opportunities to mitigate that potential exposure, these claims could result in a significant expense to the company.
Several US insurers, including Aegon subsidiaries, have been named in litigation relating to increases in monthly deduction rates (MDR) on universal life products. Plaintiffs generally allege that the increases were made to recoup past losses rather than to cover the future costs of providing insurance coverage. Aegon\u2019s subsidiary in the US has one pending related class action. This case was filed in October 2022 and relates to MDR increases in 2022 and 2023. That case is venued in the state of Iowa in federal court. At this time, Aegon is unable to reliably estimate the potential exposure in this case.
US based Aegon subsidiaries may face employment-related lawsuits from time to time. For example, several US-based Aegon subsidiaries have reached a settlement in a putative class action alleging that the subsidiaries mischaracterized agents as independent contractors instead of employees. This settlement is subject to court approval. Litigation provisions have been adjusted to account for this pending resolution. Claims like this against US-based subsidiaries could result in significant settlements or judgments and could necessitate a change in the distribution model, which would be costly and could have a material impact on the financial results for that part of the US business.
A former subsidiary of Transamerica Corporation was involved in a contractual dispute with a Nigerian travel broker that arose in 1976. A Nigerian court eventually issued a judgment in favor of the plaintiff of approximately USD 120 million. On appeal, this decision was reversed and remanded back to the trial court which dismissed the case. The plaintiff appealed the court\u2019s dismissal, but subsequently died. An application to substitute plaintiff-appellant is pending (a hearing date has not yet been determined). Aegon has no material assets located in Nigeria.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1317m1269p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Deferred tax assets | \n \n \n 2,439 | \n \n \n 2,350 | \n
| \n \n Deferred tax liabilities | \n \n \n 64 | \n \n \n 57 | \n
| \n \n Net closing balance, on December 31 | \n \n \n 2,375 | \n \n \n 2,293 | \n
| \n \n Deferred tax assets comprise temporary differences on: | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Real estate | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n
| \n \n Financial assets | \n \n \n 1,069 | \n \n \n 803 | \n
| \n \n Insurance and investment contracts | \n \n \n \n \n (1,124) \n | \n \n \n \n \n (599) \n | \n
| \n \n Deferred expenses and other intangible assets | \n \n \n 580 | \n \n \n 539 | \n
| \n \n Defined benefit plans | \n \n \n 237 | \n \n \n 214 | \n
| \n \n Tax losses and credits carried forward | \n \n \n 1,448 | \n \n \n 1,112 | \n
| \n \n Other | \n \n \n 231 | \n \n \n 283 | \n
| \n \n On December 31 | \n \n \n 2,439 | \n \n \n 2,350 | \n
| \n \n Deferred tax liabilities comprise temporary differences on: | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Financial assets | \n \n \n 1 | \n \n \n \n \n (6) \n | \n
| \n \n Insurance and investment contracts | \n \n \n 56 | \n \n \n 62 | \n
| \n \n Deferred expenses and other intangible assets | \n \n \n 4 | \n \n \n 2 | \n
| \n \n Other | \n \n \n 3 | \n \n \n \n \n (1) \n | \n
| \n \n On December 31 | \n \n \n 64 | \n \n \n 57 | \n
The following table provides a movement schedule of net deferred tax broken-down by those items for which a deferred tax asset or liability has been recognized.
| \n | \n\n \n Real estate | \n \n \n Financial assets | \n \n \n Insurance and investment contracts | \n \n \n Deferred expenses and other intangible assets | \n \n \n Defined benefit plans | \n \n \n Tax losses and credits carried forward | \n \n \n Other | \n \n \n Total | \n
| \n \n On January 1, 2024 | \n \n \n \n \n (2) \n | \n \n \n 809 | \n \n \n \n \n (661) \n | \n \n \n 537 | \n \n \n 214 | \n \n \n 1,112 | \n \n \n 284 | \n \n \n 2,293 | \n
| \n \n Acquisitions / Additions | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (10) \n | \n
| \n \n Charged to income statement | \n \n \n \n \n (1) \n | \n \n \n \n \n (76) \n | \n \n \n \n \n (109) \n | \n \n \n 12 | \n \n \n 12 | \n \n \n 259 | \n \n \n \n \n (83) \n | \n \n \n 15 | \n
| \n \n Charged to OCI | \n \n \n - | \n \n \n 278 | \n \n \n \n \n (354) \n | \n \n \n - | \n \n \n \n \n (3) \n | \n \n \n \n \n (4) \n | \n \n \n 8 | \n \n \n \n \n (75) \n | \n
| \n \n Net exchange differences | \n \n \n - | \n \n \n 63 | \n \n \n \n \n (63) \n | \n \n \n 36 | \n \n \n 15 | \n \n \n 81 | \n \n \n 19 | \n \n \n 151 | \n
| \n \n Disposal of a business | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1 | \n
| \n \n On December 31, 2024 | \n \n \n \n \n (2) \n | \n \n \n 1,068 | \n \n \n \n \n (1,180) \n | \n \n \n 576 | \n \n \n 237 | \n \n \n 1,448 | \n \n \n 228 | \n \n \n 2,375 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1, 2023 | \n \n \n \n \n (15) \n | \n \n \n 1,574 | \n \n \n \n \n (1,449) \n | \n \n \n 573 | \n \n \n 196 | \n \n \n 1,287 | \n \n \n 235 | \n \n \n 2,403 | \n
| \n \n Charged to income statement | \n \n \n 12 | \n \n \n \n \n (170) \n | \n \n \n 479 | \n \n \n \n \n (12) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (49) \n | \n \n \n \n \n (51) \n | \n \n \n 204 | \n
| \n \n Charged to OCI | \n \n \n - | \n \n \n \n \n (436) \n | \n \n \n 271 | \n \n \n - | \n \n \n 31 | \n \n \n - | \n \n \n - | \n \n \n \n \n (134) \n | \n
| \n \n Net exchange differences | \n \n \n - | \n \n \n \n \n (38) \n | \n \n \n 32 | \n \n \n \n \n (19) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (26) \n | \n \n \n \n \n (18) \n | \n \n \n \n \n (76) \n | \n
| \n \n Disposal of a business | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 8 | \n \n \n \n \n (2) \n | \n \n \n 8 | \n
| \n \n Transfers to disposal groups | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (1) \n | \n \n \n - | \n
| \n \n Transfer to/from other headings | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 118 | \n \n \n - | \n
| \n \n Transfer to/from current income tax | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (109) \n | \n \n \n - | \n \n \n \n \n (109) \n | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n 1 | \n \n \n 2 | \n \n \n \n \n (2) \n | \n
| \n \n On December 31, 2023 | \n \n \n \n \n (2) \n | \n \n \n 809 | \n \n \n \n \n (661) \n | \n \n \n 537 | \n \n \n 214 | \n \n \n 1,112 | \n \n \n 284 | \n \n \n 2,293 | \n
Transfer to/from current income tax in 2023 relates to the deferred tax asset for the loss carry forward position of the Dutch fiscal unity.
Deferred tax assets are recognized for tax losses and credits carried forward to the extent that the realization of the\u00a0related\u00a0tax benefit through future taxable profits is probable. For an amount of gross EUR 3,577 million; an amount of\u00a0tax\u00a0EUR\u00a0787\u00a0million related to tax losses carried forward (2023: gross EUR 2,564 million; tax EUR 573 million) and an\u00a0amount of tax EUR\u00a0661\u00a0million related to tax credits carried forward (2023: tax EUR 583 million) the realization of the\u00a0deferred\u00a0tax asset is dependent on the projection of future taxable profits.
For the following amounts, arranged by loss carry forward periods, the deferred tax asset is not recognized:
| \n | \n\n \n Gross amounts 1 | \n \n \n Not recognized deferred tax assets | \n ||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n < 5 years | \n \n \n 41 | \n \n \n 28 | \n \n \n 15 | \n \n \n 13 | \n
| \n \n \u2265 5 \u2013 10 years | \n \n \n 1 | \n \n \n 1 | \n \n \n 1 | \n \n \n - | \n
| \n \n \u2265 10 \u2013 15 years | \n \n \n - | \n \n \n - | \n \n \n 79 | \n \n \n 65 | \n
| \n \n \u2265 15 \u2013 20 years | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Indefinitely | \n \n \n 976 | \n \n \n 939 | \n \n \n 269 | \n \n \n 231 | \n
| \n \n On December 31 | \n \n \n 1,018 | \n \n \n 969 | \n \n \n 364 | \n \n \n 308 | \n
Deferred corporate income tax assets in respect of deductible temporary differences are recognized to the extent that the\u00a0realization of the related tax benefit through future taxable profits is probable. For the following amounts relating to deductible temporary differences the realization of the deferred corporate income tax asset is dependent on future taxable profits in excess of the profits arising from the reversal of existing taxable temporary differences.
| \n | \n\n \n Gross amounts | \n \n \n Deferred tax assets | \n ||
| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Deferred corporate income tax asset dependent on retaining bond and similar investments until the earlier of market recovery or maturity | \n \n \n 6,013 | \n \n \n 4,729 | \n \n \n 1,263 | \n \n \n 993 | \n
| \n \n Deferred corporate income tax asset dependent on future taxable profits | \n \n \n 141 | \n \n \n 1,717 | \n \n \n 30 | \n \n \n 362 | \n
| \n \n On December 31 | \n \n \n 6,154 | \n \n \n 6,446 | \n \n \n 1,293 | \n \n \n 1,355 | \n
Deferred taxes are non-current by nature and the majority of the deferred tax assets and liabilities will therefore reverse after more than one year after the balance sheet date.\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1320m1272p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Payables due to policyholders | \n \n \n 815 | \n \n \n 1,632 | \n
| \n \n Payables due to brokers and agents | \n \n \n 505 | \n \n \n 482 | \n
| \n \n Social security and taxes payable | \n \n \n 57 | \n \n \n 59 | \n
| \n \n Income tax payable | \n \n \n 4 | \n \n \n 1 | \n
| \n \n Investment creditors | \n \n \n 1,175 | \n \n \n 995 | \n
| \n \n Cash collateral on derivative transactions | \n \n \n 250 | \n \n \n 964 | \n
| \n \n Cash collateral on securities lent | \n \n \n 1,898 | \n \n \n 2,357 | \n
| \n \n Cash collateral - other | \n \n \n 92 | \n \n \n 68 | \n
| \n \n Repurchase agreements | \n \n \n - | \n \n \n 28 | \n
| \n \n Lease liabilities | \n \n \n 216 | \n \n \n 205 | \n
| \n \n Other creditors | \n \n \n 2,112 | \n \n \n 1,599 | \n
| \n \n On December 31 | \n \n \n 7,124 | \n \n \n 8,390 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 6,930 | \n \n \n 8,210 | \n
| \n \n Non-current | \n \n \n 194 | \n \n \n 180 | \n
The carrying amounts disclosed are reasonable approximations of the fair values at yearend, given the predominantly current nature of the other liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5728m3785p": { "value": "\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Payables due to policyholders | \n \n \n 815 | \n \n \n 1,632 | \n
| \n \n Payables due to brokers and agents | \n \n \n 505 | \n \n \n 482 | \n
| \n \n Social security and taxes payable | \n \n \n 57 | \n \n \n 59 | \n
| \n \n Income tax payable | \n \n \n 4 | \n \n \n 1 | \n
| \n \n Investment creditors | \n \n \n 1,175 | \n \n \n 995 | \n
| \n \n Cash collateral on derivative transactions | \n \n \n 250 | \n \n \n 964 | \n
| \n \n Cash collateral on securities lent | \n \n \n 1,898 | \n \n \n 2,357 | \n
| \n \n Cash collateral - other | \n \n \n 92 | \n \n \n 68 | \n
| \n \n Repurchase agreements | \n \n \n - | \n \n \n 28 | \n
| \n \n Lease liabilities | \n \n \n 216 | \n \n \n 205 | \n
| \n \n Other creditors | \n \n \n 2,112 | \n \n \n 1,599 | \n
| \n \n On December 31 | \n \n \n 7,124 | \n \n \n 8,390 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 6,930 | \n \n \n 8,210 | \n
| \n \n Non-current | \n \n \n 194 | \n \n \n 180 | \n
The carrying amounts disclosed are reasonable approximations of the fair values at yearend, given the predominantly current nature of the other liabilities.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Accrued interest | \n \n \n 35 | \n \n \n 47 | \n
| \n \n Accrued expenses | \n \n \n 297 | \n \n \n 281 | \n
| \n \n On December 31 | \n \n \n 332 | \n \n \n 328 | \n
The carrying amounts disclosed reasonably approximate the fair values at year-end.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1319m1271p": { "value": "\nThe Group\u2019s lead regulator, the Bermuda Monetary Authority (BMA), monitors capital requirements for the Group as a whole. The Group\u2019s individual subsidiaries are directly supervised by their local regulators. The Group is required by the BMA to hold an excess of its assets over its insurance contract liabilities calculated on a regulatory basis. Aegon\u2019s group solvency ratio under the Bermuda solvency framework is broadly aligned with that under the previously applied Solvency II framework during a transition period until the end of 2027. This includes the method to translate Transamerica\u2019s capital position into the group solvency position.\u00a0
The Group and its individual subsidiaries may also be subject to supervisory intervention by their local regulators at local entity level. The Group and its individually regulated subsidiaries complied with all externally imposed capital requirements during 2024 and 2023.
\nAegon\u2019s approach toward capital management plays a vital role in supporting the execution of its strategy. The key capital management priority is to ensure adequate capitalization to cover Aegon\u2019s obligations toward its policyholders and debtholders while providing sustainable dividends to shareholders. This priority is accomplished by allocating capital to products that offer high growth and return prospects.\u00a0
\nDisciplined risk and capital management support Aegon\u2019s decisions in deploying the capital that is generated in the Company's businesses and that is provided for by investors. Aegon balances the funding of new business growth with the funding required to ensure that its obligations toward policyholders and debtholders are always adequately met and provide a\u00a0sustainable dividend to shareholders.
Aegon\u2019s goal for both its operating units and for the Aegon group as a whole is to maintain a strong financial position and to be able to sustain losses from extreme business and market conditions. Aegon\u2019s Enterprise Risk Management (ERM) framework ensures that the Aegon Group and its operating companies are adequately capitalized and that obligations toward policyholders are always adequately met. Embedded in this larger framework is Aegon\u2019s capital management policy, which is based on adequate capitalization of the operating units, Cash Capital at Holding, and leverage.
Aegon manages capital in the operating units to their respective operating levels, sufficient to absorb moderate shocks and pay sustainable remittances to the Group, and above their minimum dividend payment levels. Cash Capital at Holding is maintained within an operating range of EUR 0.5 \u2013 1.5 billion and covers holding expenses, near-term dividends, and contingencies, such as potential recapitalization of units. Aegon's gross financial leverage was EUR 5.2 billion per December 31, 2024 compared to EUR 5.1 billion per December 31, 2023.
The frequent monitoring of actual and forecasted capitalization levels of its underlying businesses is an important element in\u00a0Aegon's capital framework in order to actively steer and manage toward maintaining adequate capitalization levels. Group\u00a0operating capital generation contributed favorably and more than offset dividend payments.
\n| \n | \n\n \n December 31, 2024 1 | \n \n \n December 31, 2023 | \n
| \n \n US RBC ratio | \n \n \n 443% | \n \n \n 432% | \n
| \n \n Scottish Equitable Plc (UK) Solvency II ratio | \n \n \n 186% | \n \n \n 187% | \n
The estimated RBC ratio in the United States increased from 432% on December 31, 2023, to 443% on December 31, 2024, and remained above the operating level of 400%. In addition to a strong operating performance, markets had beneficial impacts driven by interest rate variance, equity returns and a positive impact on credit variances. The positive impact was partly offset by a negative impact from the termination of a portfolio of universal life policies previously bought from institutional owners, taking into account the repayment of part of the equity funding used to acquire these policies.
The Solvency II ratio for Scottish Equitable Plc decreased from 187% on December 31, 2023, to 186% on December 31, 2024, and remained above the operating level of 150%. The capital ratio remained stable over the year, where operating capital generation and positive impacts from markets, almost offset the negative impacts from one-time items and remittances to Aegon UK.
The ability of Aegon's operating units, principally insurance companies, to pay remittances to the holding company is constrained by the requirement for these operating units to remain adequately capitalized to the levels set by local insurance regulations and governed by local insurance supervisory authorities. Based on the capitalization level of the operating units, local insurance supervisors are able to restrict and/or prohibit the transfer of remittances to the holding company. In addition, the ability of operating units to pay remittances to the holding company can be constrained by the requirement for these operating units to hold sufficient shareholders' equity as determined by law. The capitalization level and shareholders' equity of the operating units can be impacted by various factors (e.g. general economic conditions, capital market risks, underwriting risk factors, changes in government regulations, and legal and arbitrational proceedings). To mitigate the impact of such factors on the ability of operating units to transfer funds, Aegon establishes an operating level of capital in each of the units, 150% SCR for Solvency II units, including the United Kingdom, and 400% RBC CAL in the United States, which includes additional capital in excess of regulatory capital requirements. Aegon manages capital in the units to this operating level over-the-cycle.
\nCash Capital at Holding decreased from EUR 2.4 billion on December 31, 2023 to EUR 1.7 billion on December 31, 2024. This\u00a0decrease was largely due to the payment of final 2023 and interim 2024 external dividend and the share buy backs (in\u00a0total\u00a0EUR\u00a01.4\u00a0billion) partly offset by the free cash flows in 2024 (EUR 0.8 billion).
\nAegon\u2019s group solvency ratio and surplus under the Bermuda solvency framework is broadly in line with that under the Solvency II framework during a transition period until the end of 2027. The method to translate Transamerica\u2019s capital position into the group solvency position is also similar to the methodology previously applied under Solvency II. Aegon's UK insurance subsidiaries have been included in Aegon\u2019s Solvency calculation in accordance with UK Solvency II standards, including Aegon UK's approved Partial Internal Model.\u00a0After the transition period, Aegon will fully adopt the Bermudian solvency framework.
The Group solvency ratio is calculated as the ratio between the Eligible Own Funds and the Solvency Capital Requirement (SCR). The Eligible Own Funds equal the Available Own Funds after applying any Own Funds eligibility restrictions.
| \n | \n\n \n December 31, 2024 1 | \n \n \n December 31, 2023 | \n
| \n \n Group Eligible Own Funds | \n \n \n 14,030 | \n \n \n 14,250 | \n
| \n \n Group SCR | \n \n \n 7,466 | \n \n \n 7,366 | \n
| \n \n Group solvency ratio 2 | \n \n \n 188% | \n \n \n 193% | \n
Aegon\u2019s Group solvency ratio was 188% on December 31, 2024, compared with 193% on December 31, 2023. The decrease in Group Solvency ratio of 5%-points is mainly driven by the negative impact from the decision to redeem the EUR 700 million fixed-to-floating subordinated notes (see also note\u00a016 Subordinated borrowings) , the negative impact from the share buy backs of EUR 200 million and EUR 150 million and the negative impact of the China fungibility haircut partly offset by positive impact from markets and the positive impact resulting from Aegon\u2019s stake in a.s.r.
\nInsurance laws and regulations in local regulatory jurisdictions often contain minimum regulatory capital requirements. Bermuda and the BMA, as group supervisor and local entity supervisor of Bermuda subsidiaries, defined a minimum solvency margin. For insurance companies in the European Union and the United Kingdom a minimum capital requirement is defined. An irreparable breach of the minimum regulatory capital requirements would lead to a withdrawal of the Company's insurance license. Similarly, for the US insurance entities the withdrawal of the insurance license is triggered by a breach of the 100% Authorized Control Level (ACL), which is set at 50% of the Company Action Level (CAL).
Aegon views the higher capital requirement, 120% of the SCR for the Group or 100% of local entity solvency capital requirement as the level around which supervisors will formally require management to provide regulatory recovery plans.\u00a0
During 2024, the Aegon Group and the regulated entities within the Aegon Group that are subject to regulatory capital requirements on a solo-level continued to comply with the solvency requirements.
\nAegon\u2019s total capitalization reflects the capital employed in the business units and consists of the adjusted valuation equity\u00a0and total gross financial leverage. Aegon assesses its gross financial leverage position based on various leverage metrics, including the gross financial leverage ratio, which is calculated by dividing total financial leverage by total capitalization. Aegon defines total financial leverage as debt or debt-like funding issued for general corporate purposes and for capitalizing Aegon\u2019s business units. Total financial leverage includes hybrid instruments, in addition to both subordinated and senior debt. Aegon\u2019s total capitalization comprises the following components:
Shareholders\u2019 equity based on IFRS;
Non-controlling interests and Long Term Incentive Plans not yet vested
Contractual service margin net of tax; and
Total financial leverage.
The following table shows the composition of Aegon's total capitalization, the calculation of the gross financial leverage ratio and its fixed charge coverage:
| \n | \n\n \n Note | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Total shareholders\u2019 equity | \n \n \n 25 | \n \n \n 7,215 | \n \n \n 7,475 | \n
| \n \n Non-controlling interests and share options not yet exercised | \n \n \n 26, SOFP 2 | \n \n \n 221 | \n \n \n 203 | \n
| \n \n CSM after tax | \n \n \n 29 | \n \n \n 6,975 | \n \n \n 6,403 | \n
| \n \n Adjusted valuation equity | \n \n | \n\n \n 14,411 | \n \n \n 14,080 | \n
| \n \n Perpetual contingent convertible securities | \n \n \n 26 | \n \n \n 500 | \n \n \n 500 | \n
| \n \n Junior perpetual capital securities | \n \n \n 26 | \n \n \n 923 | \n \n \n 923 | \n
| \n \n Perpetual cumulative subordinated bonds | \n \n \n 26 | \n \n \n 454 | \n \n \n 454 | \n
| \n \n Subordinated Borrowings | \n \n \n 27 | \n \n \n 1,653 | \n \n \n 2,244 | \n
| \n \n Trust pass-through securities | \n \n \n 28 | \n \n \n 113 | \n \n \n 111 | \n
| \n \n Currency revaluation other equity instruments 1 | \n \n | \n\n \n 52 | \n \n \n 50 | \n
| \n \n Hybrid leverage | \n \n | \n\n \n 3,695 | \n \n \n 4,282 | \n
| \n \n Senior debt | \n \n \n 31 3 | \n \n \n 1,507 | \n \n \n 782 | \n
| \n \n Senior leverage | \n \n | \n\n \n 1,507 | \n \n \n 782 | \n
| \n \n Total gross financial leverage | \n \n | \n\n \n 5,201 | \n \n \n 5,064 | \n
| \n | \n\n | \n\n \n - | \n \n | \n
| \n \n Total capitalization | \n \n | \n\n \n 19,612 | \n \n \n 19,144 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Gross financial leverage ratio | \n \n | \n\n \n 26.5% | \n \n \n 26.5% | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Fixed Charge Coverage | \n \n | \n\n \n 6.4 x | \n \n \n 6.5 x | \n
Aegon Ltd. is subject to legal restrictions with regard to the number of dividends it can pay to its shareholders.\u00a0\u00a0Aegon shall only declare or pay a dividend or make a distribution from contributed surplus in accordance with Bermuda law. Among other things this means that Aegon shall not declare or pay a dividend or make a distribution from contributed surplus in the event that there are reasonable grounds for believing that (i) the company is, or would after the payment be, unable to pay its liabilities as they become due; or (ii) the realizable value of the company\u2019s assets would thereby be less than its liabilities.
In accordance with the Dutch Non-residential companies act (\"Wet op de formeel buitenlandse vennootschappen\") the\u00a0members of the Board of Directors will need to satisfy themselves that after distributions to shareholders, repurchase of\u00a0shares and reduction of the issued capital with repayment of shares Aegon Ltd. remains in the position to proceed with\u00a0the\u00a0payment of its due debts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1321m1273p": { "value": "\nThe estimated fair values of Aegon\u2019s assets and liabilities correspond with the amounts that would be received to sell an\u00a0asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When\u00a0available, Aegon uses quoted market prices in active markets to determine the fair value of investments and derivatives. In\u00a0the\u00a0absence of an active market, the fair value of investments in financial assets is estimated by using other market observable data, such as corroborated external quotes and present value or other valuation techniques. An active market is one in which transactions are taking place regularly on an arm\u2019s length basis. Fair value is not determined based on a forced liquidation or distressed sale.
Valuation techniques are used when Aegon determines the market is inactive or quoted market prices are not available for the\u00a0asset or liability at the measurement date. However, the fair value measurement objective remains the same, that is, to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). Therefore, unobservable inputs reflect Aegon\u2019s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). These inputs are developed based on the best information available.
Aegon employs an oversight structure over the valuation of financial instruments that includes the appropriate segregation of duties. Senior management, independent of the investing functions, is responsible for the oversight of control and valuation policies and for reporting the results of these policies. For fair values determined by reference to external quotation or evidenced pricing parameters, independent price determination or validation is utilized to corroborate those inputs. Further details of the validation processes are set out below.
Valuation of assets and liabilities is based on a pricing hierarchy, in order to maintain a controlled process that will systematically promote the use of prices from sources in which Aegon has the most confidence, where the least amount of manual intervention exists, and to embed consistency in the selection of price sources. Depending on asset type the pricing hierarchy consists of a waterfall that starts with making use of market prices from indices and follows with making use of third-party pricing services or brokers.
\nThe following table sets out the fair values of financial instruments by the level of the fair value hierarchy into which each fair value measurement is categorized. It does not include fair value information for cash and cash equivalents, receivables, and payables, whose carrying amounts are a reasonable approximation of fair value, or for lease liabilities.
| \n | \n\n \n 2024 | \n |||
| \n \n Fair value hierarchy | \n \n \n Level I | \n \n \n Level II | \n \n \n Level III | \n \n \n Total | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 34 | \n \n \n - | \n \n \n 4 | \n \n \n 39 | \n
| \n \n Debt securities | \n \n \n 5,170 | \n \n \n 46,242 | \n \n \n 799 | \n \n \n 52,211 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,388 | \n \n \n 47 | \n \n \n - | \n \n \n 2,435 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 31 | \n \n \n - | \n \n \n 31 | \n
| \n | \n\n \n 7,592 | \n \n \n 46,320 | \n \n \n 803 | \n \n \n 54,715 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 163 | \n \n \n 30 | \n \n \n 86 | \n \n \n 279 | \n
| \n \n Debt securities | \n \n \n 308 | \n \n \n 1,970 | \n \n \n 107 | \n \n \n 2,385 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,961 | \n \n \n 135 | \n \n \n - | \n \n \n 2,096 | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n 82 | \n
| \n \n Other investments at fair value | \n \n \n 1 | \n \n \n 718 | \n \n \n 4,457 | \n \n \n 5,176 | \n
| \n \n Derivatives | \n \n \n 30 | \n \n \n 732 | \n \n \n 9 | \n \n \n 771 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 57 | \n \n \n 57 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 457 | \n \n \n 457 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 97,682 | \n \n \n 119,829 | \n \n \n 312 | \n \n \n 217,824 | \n
| \n | \n\n \n 100,146 | \n \n \n 123,414 | \n \n \n 5,567 | \n \n \n 229,127 | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n 66 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 107,738 | \n \n \n 169,734 | \n \n \n 6,436 | \n \n \n 283,908 | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 79,078 | \n \n \n - | \n \n \n 79,078 | \n
| \n \n Derivatives | \n \n \n 53 | \n \n \n 2,382 | \n \n \n - | \n \n \n 2,435 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 53 | \n \n \n 81,460 | \n \n \n - | \n \n \n 81,513 | \n
| \n | \n\n \n 2023 | \n |||
| \n \n Fair value hierarchy | \n \n \n Level I | \n \n \n Level II | \n \n \n Level III | \n \n \n Total | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 5 | \n \n \n - | \n \n \n 4 | \n \n \n 10 | \n
| \n \n Debt securities | \n \n \n 5,644 | \n \n \n 41,031 | \n \n \n 516 | \n \n \n 47,191 | \n
| \n \n Money market and other short-term investments | \n \n \n 3,028 | \n \n \n 97 | \n \n \n 9 | \n \n \n 3,135 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 29 | \n \n \n - | \n \n \n 29 | \n
| \n | \n\n \n 8,678 | \n \n \n 41,157 | \n \n \n 530 | \n \n \n 50,364 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 153 | \n \n \n 43 | \n \n \n 94 | \n \n \n 291 | \n
| \n \n Debt securities | \n \n \n 302 | \n \n \n 2,009 | \n \n \n 86 | \n \n \n 2,396 | \n
| \n \n Money market and other short-term investments | \n \n \n 4,041 | \n \n \n 173 | \n \n \n - | \n \n \n 4,215 | \n
| \n \n Other investments at fair value | \n \n \n 1 | \n \n \n 773 | \n \n \n 4,237 | \n \n \n 5,011 | \n
| \n \n Derivatives | \n \n \n 47 | \n \n \n 1,374 | \n \n \n 8 | \n \n \n 1,429 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 55 | \n \n \n 55 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 433 | \n \n \n 433 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 90,027 | \n \n \n 103,022 | \n \n \n 342 | \n \n \n 193,390 | \n
| \n | \n\n \n 94,570 | \n \n \n 107,395 | \n \n \n 5,255 | \n \n \n 207,220 | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n 61 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 103,248 | \n \n \n 148,551 | \n \n \n 5,846 | \n \n \n 257,645 | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 65,044 | \n \n \n - | \n \n \n 65,044 | \n
| \n \n Derivatives | \n \n \n 39 | \n \n \n 2,434 | \n \n \n 6 | \n \n \n 2,479 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 39 | \n \n \n 67,478 | \n \n \n 6 | \n \n \n 67,523 | \n
Aegon\u2019s policy is to record transfers of assets and liabilities between Level I, Level II and Level III at their fair values from the beginning of each reporting period.
The table below shows transfers between Level I and Level II for financial assets and financial liabilities recorded at fair value on a recurring basis.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n \n Significant transfers between level I, level II and level III | \n \n \n Transfers Level I to Level II | \n \n \n Transfers Level II to Level I | \n \n \n Transfers Level I to Level II | \n \n \n Transfers Level II to Level I | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n 308 | \n \n \n 261 | \n \n \n - | \n \n \n 141 | \n
| \n \n Money market and other short-term investments | \n \n \n 48 | \n \n \n - | \n \n \n 45 | \n \n \n 245 | \n
| \n | \n\n \n 356 | \n \n \n 261 | \n \n \n 45 | \n \n \n 386 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n 11 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n Money market and other short-term investments | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 795 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n - | \n
| \n | \n\n \n 11 | \n \n \n 4 | \n \n \n 1 | \n \n \n 795 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 367 | \n \n \n 265 | \n \n \n 46 | \n \n \n 1,182 | \n
Transfers are identified based on transaction volume and frequency, which are indicative of an active market.
\nThe following table summarizes the change of all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level III), including realized and unrealized gains (losses) of all assets and liabilities and unrealized gains (losses) of all assets and liabilities still held at the end of the respective period.
| \n \n Financial assets carried at fair value | \n \n \n On January 1, 2024 | \n \n \n Total gains / losses in income state- ment 1 | \n \n \n Total gains / losses in OCI 2 | \n \n \n Purch- ases | \n \n \n Sales | \n \n \n Settle- ments | \n \n \n Net ex- change diffe- rence | \n \n \n Reclas- sifica- tion | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total unrealized gains and losses recorded in the P&L for instruments held at December 31, 2024 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 516 | \n \n \n 9 | \n \n \n \n \n (27) \n | \n \n \n 218 | \n \n \n \n \n (126) \n | \n \n \n \n \n (41) \n | \n \n \n 44 | \n \n \n - | \n \n \n 301 | \n \n \n \n \n (96) \n | \n \n \n 799 | \n \n \n - | \n
| \n \n Money markets and other short-term investments | \n \n \n 9 | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 530 | \n \n \n 9 | \n \n \n \n \n (36) \n | \n \n \n 218 | \n \n \n \n \n (126) \n | \n \n \n \n \n (41) \n | \n \n \n 44 | \n \n \n - | \n \n \n 301 | \n \n \n \n \n (96) \n | \n \n \n 803 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 94 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n 16 | \n \n \n \n \n (27) \n | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 86 | \n \n \n \n \n (5) \n | \n
| \n \n Debt securities | \n \n \n 86 | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n 18 | \n \n \n \n \n (14) \n | \n \n \n \n \n (5) \n | \n \n \n 6 | \n \n \n - | \n \n \n 53 | \n \n \n \n \n (18) \n | \n \n \n 107 | \n \n \n \n \n (18) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n 68 | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n - | \n
| \n \n Other investments at fair value | \n \n \n 4,237 | \n \n \n \n \n (175) \n | \n \n \n - | \n \n \n 505 | \n \n \n \n \n (323) \n | \n \n \n - | \n \n \n 280 | \n \n \n \n \n (68) \n | \n \n \n - | \n \n \n - | \n \n \n 4,457 | \n \n \n \n \n (206) \n | \n
| \n \n Derivatives | \n \n \n 8 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 1 | \n
| \n \n Investments in real estate | \n \n \n 55 | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 57 | \n \n \n - | \n
| \n \n Investments in real estate for policyholders | \n \n \n 433 | \n \n \n 9 | \n \n \n - | \n \n \n 26 | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n 21 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 457 | \n \n \n 59 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 342 | \n \n \n 3 | \n \n \n - | \n \n \n 62 | \n \n \n \n \n (112) \n | \n \n \n - | \n \n \n 18 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 312 | \n \n \n 1 | \n
| \n | \n\n \n 5,255 | \n \n \n \n \n (183) \n | \n \n \n - | \n \n \n 638 | \n \n \n \n \n (511) \n | \n \n \n \n \n (5) \n | \n \n \n 338 | \n \n \n - | \n \n \n 53 | \n \n \n \n \n (18) \n | \n \n \n 5,567 | \n \n \n \n \n (169) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n 64 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n \n \n (1) \n | \n
| \n | \n\n \n 64 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets measured at fair value | \n \n \n 5,849 | \n \n \n \n \n (174) \n | \n \n \n \n \n (37) \n | \n \n \n 857 | \n \n \n \n \n (638) \n | \n \n \n \n \n (45) \n | \n \n \n 385 | \n \n \n - | \n \n \n 354 | \n \n \n \n \n (114) \n | \n \n \n 6,436 | \n \n \n \n \n (169) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets carried at fair value | \n \n \n On January 1, 2023 | \n \n \n Total gains / losses in income state- ment 1 | \n \n \n Total gains / losses in OCI 2 | \n \n \n Purch- ases | \n \n \n Sales | \n \n \n Settle- ments | \n \n \n Net ex- change diffe- rence | \n \n \n Reclas- sifica- tion | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total unrealized gains and losses recorded in the P&L for instruments held at December 31, 2023 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 181 | \n \n \n \n \n (1) \n | \n \n \n 11 | \n \n \n 263 | \n \n \n \n \n (124) \n | \n \n \n \n \n (15) \n | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 214 | \n \n \n \n \n (1) \n | \n \n \n 516 | \n \n \n - | \n
| \n \n Money markets and other short-term investments | \n \n \n 5 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n - | \n
| \n | \n\n \n 191 | \n \n \n \n \n (1) \n | \n \n \n 15 | \n \n \n 263 | \n \n \n \n \n (124) \n | \n \n \n \n \n (15) \n | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 214 | \n \n \n \n \n (1) \n | \n \n \n 530 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 127 | \n \n \n 2 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (47) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 94 | \n \n \n 3 | \n
| \n \n Debt securities | \n \n \n 35 | \n \n \n 17 | \n \n \n - | \n \n \n 38 | \n \n \n \n \n (43) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n 46 | \n \n \n - | \n \n \n 86 | \n \n \n \n \n (8) \n | \n
| \n \n Money markets and other short-term investments | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n
| \n \n Other investments at fair value | \n \n \n 4,050 | \n \n \n \n \n (65) \n | \n \n \n - | \n \n \n 652 | \n \n \n \n \n (254) \n | \n \n \n - | \n \n \n \n \n (144) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,237 | \n \n \n \n \n (70) \n | \n
| \n \n Derivatives | \n \n \n 11 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n \n \n \n \n (3) \n | \n
| \n \n Investments in real estate | \n \n \n 59 | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 55 | \n \n \n - | \n
| \n \n Investments in real estate for policyholders | \n \n \n 443 | \n \n \n \n \n (52) \n | \n \n \n - | \n \n \n 42 | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 433 | \n \n \n \n \n (42) \n | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 402 | \n \n \n \n \n (37) \n | \n \n \n - | \n \n \n 37 | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 342 | \n \n \n - | \n
| \n | \n\n \n 5,128 | \n \n \n \n \n (136) \n | \n \n \n - | \n \n \n 782 | \n \n \n \n \n (422) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (142) \n | \n \n \n - | \n \n \n 51 | \n \n \n \n \n (2) \n | \n \n \n 5,255 | \n \n \n \n \n (120) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n 73 | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 64 | \n \n \n - | \n
| \n | \n\n \n 73 | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 64 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets measured at fair value | \n \n \n 5,392 | \n \n \n \n \n (141) \n | \n \n \n 13 | \n \n \n 1,044 | \n \n \n \n \n (546) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (157) \n | \n \n \n - | \n \n \n 265 | \n \n \n \n \n (3) \n | \n \n \n 5,849 | \n \n \n \n \n (120) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 12 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n
| \n | \n\n \n 12 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n
In 2023 and 2024, Aegon transferred certain financial instruments from Level I and II to Level III of the fair value hierarchy. The\u00a0reason for the change in level was that the market liquidity for these securities decreased, which led to a change in\u00a0market observability of prices. Prior to transfer, the fair value for the Level II securities was determined using observable market transactions, internal models or corroborated broker quotes respectively for the same or similar instruments. Since\u00a0the\u00a0transfer, all such assets have been valued using valuation models incorporating significant non-market-observable inputs or\u00a0uncorroborated broker quotes.
Similarly, during 2023 and 2024, Aegon transferred certain financial instruments from Level III to Level I and II of the fair value hierarchy. The change in level was mainly the result of a return of activity in the market for these securities, and that for these securities the fair value could be determined using observable market transactions or corroborated broker quotes for the same or similar instruments.
\nThe table below presents information about the\u00a0valuation techniques and significant unobservable inputs used for recurring fair value measurements for certain Level III financial instruments.
| \n | \n\n \n Valuation technique 1 | \n \n \n Significant unobservable input 2 | \n \n \n December 31, 2024 | \n \n \n \n \n Range (weighted average) \n | \n \n \n December 31, 2023 | \n \n \n \n \n Range (weighted average) \n | \n
| \n \n Assets carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value through OCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n Net asset value | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n - | \n \n | \n\n \n 4 | \n \n | \n
| \n \n Debt securities | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n \n Broker quote | \n \n \n n.a. | \n \n \n 688 | \n \n \n n.a. | \n \n \n 416 | \n \n \n n.a. | \n
| \n | \n\n \n Discounted cash flow | \n \n \n Constant Prepayment Rate | \n \n \n 28 | \n \n \n 21.11% | \n \n \n 2 | \n \n \n 1.81% | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n \n \n 98 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 799 | \n \n | \n\n \n 516 | \n \n | \n
| \n \n Other investments at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n \n Other | \n \n \n Other | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n \n \n 9 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n - | \n \n | \n\n \n 9 | \n \n | \n
| \n \n On December 31 | \n \n | \n\n | \n\n \n 799 | \n \n | \n\n \n 530 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n \n \n 91 | \n \n \n n.a. | \n
| \n \n Shares | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 3 | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 94 | \n \n \n n.a. | \n \n \n 80 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Other | \n \n \n n.a. | \n \n \n 13 | \n \n \n n.a. | \n \n \n 6 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 193 | \n \n | \n\n \n 180 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other investments at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 3,633 | \n \n | \n\n \n 3,532 | \n \n | \n
| \n \n Tax credit investments | \n \n \n Discounted cash flow | \n \n \n Discount rate | \n \n \n 823 | \n \n \n 6.72% | \n \n \n 705 | \n \n \n 6.88% | \n
| \n \n Loans | \n \n \n Other | \n \n \n n.a. | \n \n \n 82 | \n \n | \n\n \n - | \n \n | \n
| \n | \n\n | \n\n | \n\n \n 4,538 | \n \n | \n\n \n 4,237 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total assets at fair value 3 | \n \n | \n\n | \n\n \n 5,530 | \n \n | \n\n \n 4,947 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Embedded derivatives in insurance contracts | \n \n \n Discounted cash flow | \n \n \n Own credit spread | \n \n \n - | \n \n \n n.a | \n \n \n 3 | \n \n \n n.a | \n
| \n \n Other | \n \n \n Discounted cash flow | \n \n \n Other | \n \n \n - | \n \n \n n.a | \n \n \n 3 | \n \n \n n.a | \n
| \n \n Total liabilities at fair value | \n \n | \n\n | \n\n \n - | \n \n | \n\n \n 6 | \n \n | \n
For reference purposes, the valuation techniques included in the table above are described in more detail on the following pages.
\nThe following table presents the carrying values and estimated fair values of assets and liabilities, excluding assets and liabilities that are carried at fair value on a recurring basis.
| \n | \n\n \n Carrying amount | \n \n \n Estimated fair value hierarchy | \n \n \n Total estimated fair value December 31, 2024 | \n ||
| \n | \n\n \n Level I | \n \n \n Level II | \n \n \n Level III | \n ||
| \n \n Assets | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities - held at amortized cost | \n \n \n 36 | \n \n \n 36 | \n \n \n - | \n \n \n - | \n \n \n 36 | \n
| \n \n Loans - held at amortized cost | \n \n \n 10,598 | \n \n \n - | \n \n \n 1 | \n \n \n 9,379 | \n \n \n 9,380 | \n
| \n \n Deposits with financial institutions - held at amortized cost | \n \n \n 11 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 11 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Subordinated borrowings - held at amortized cost | \n \n \n 1,653 | \n \n \n 763 | \n \n \n 727 | \n \n \n - | \n \n \n 1,490 | \n
| \n \n Trust pass-through securities - held at amortized cost | \n \n \n 113 | \n \n \n - | \n \n \n 133 | \n \n \n - | \n \n \n 133 | \n
| \n \n Borrowings \u2013 held at amortized cost | \n \n \n 3,013 | \n \n \n 867 | \n \n \n 2,209 | \n \n \n - | \n \n \n 3,076 | \n
| \n \n Investment contracts - held at amortized cost | \n \n \n 12,592 | \n \n \n - | \n \n \n - | \n \n \n 9,432 | \n \n \n 9,432 | \n
| \n | \n\n \n Carrying amount | \n \n \n Estimated fair value hierarchy | \n \n \n Total estimated fair value December 31, 2023 | \n ||
| \n | \n\n \n Level I | \n \n \n Level II | \n \n \n Level III | \n ||
| \n \n Assets | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities - held at amortized cost | \n \n \n 52 | \n \n \n 52 | \n \n \n - | \n \n \n - | \n \n \n 52 | \n
| \n \n Loans - held at amortized cost | \n \n \n 10,157 | \n \n \n - | \n \n \n 1 | \n \n \n 9,024 | \n \n \n 9,025 | \n
| \n \n Deposits with financial institutions - held at amortized cost | \n \n \n 18 | \n \n \n 18 | \n \n \n 1 | \n \n \n - | \n \n \n 18 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Subordinated borrowings - held at amortized cost | \n \n \n 2,244 | \n \n \n 1,392 | \n \n \n 730 | \n \n \n - | \n \n \n 2,122 | \n
| \n \n Trust pass-through securities - held at amortized cost | \n \n \n 111 | \n \n \n - | \n \n \n 125 | \n \n \n - | \n \n \n 125 | \n
| \n \n Borrowings \u2013 held at amortized cost | \n \n \n 2,356 | \n \n \n 879 | \n \n \n 1,580 | \n \n \n - | \n \n \n 2,459 | \n
| \n \n Investment contracts - held at amortized cost | \n \n \n 10,222 | \n \n \n - | \n \n \n - | \n \n \n 8,755 | \n \n \n 8,755 | \n
Certain financial instruments that are not carried at fair value are carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and cash equivalents, short-term receivables and accrued interest receivable, short-term liabilities, and accrued liabilities. These instruments are not included in the table above.
\nThe description of Aegon's methods of determining fair value and valuation techniques are described on the following pages.
\nWhen available, Aegon uses quoted market prices in active markets to determine the fair value of its investments in shares. For Level III unquoted shares,\u00a0the net asset value can be considered the best approximation to the fair value. Net asset value is the value of an entity's assets minus the value of its liabilities and may be the same as the book value or the equity value of the entity.\u00a0
Also, for unquoted shares, the fair value may be estimated using other methods, such as observations of the price/earnings or price/cash flow ratios of quoted companies considered comparable to the companies being valued. Valuations are adjusted to account for company-specific issues and the lack of liquidity inherent in an unquoted investment. Adjustments for lack of liquidity are generally based on available market evidence. In addition, a variety of other factors are reviewed by management, including, but not limited to, current operating performance, changes in market outlook and the third-party financing environment.\u00a0
Included in this category are shares in a Federal Home Loan Bank (FHLB) for an amount of EUR 77 million (2023: EUR\u00a082\u00a0million), which are reported as part of the line-item Net asset value. A FHLB has implicit financial support from the\u00a0United\u00a0States government. The redemption value of the shares is fixed at par and they can only be redeemed by\u00a0the\u00a0FHLB.
\nThe fair values of debt securities are determined by management after taking into consideration several sources of data. When available, Aegon uses quoted market prices in active markets to determine the fair value of its debt securities. As stated previously, Aegon\u2019s valuation policy utilizes a pricing hierarchy that dictates that publicly available prices are initially sought from indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes, the majority of which are non-binding. As part of the pricing process, Aegon assesses the appropriateness of each quote (i.e. as to whether the quote is based on observable market transactions or not) to determine the most appropriate estimate of fair value.
When broker quotes are not available, securities are priced using internal cash flow modeling techniques. These valuation methodologies commonly use the following inputs: reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, issue-specific credit adjustments, indicative quotes from market makers and/or estimated cash flows.
To understand the valuation methodologies used by third-party pricing services Aegon reviews and monitors the applicable methodology documents of the third-party pricing services. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, Aegon performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate that Aegon can corroborate detailed information such as assumptions, inputs, and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.
Third-party pricing services will often determine prices using recently reported trades for identical or similar securities. The\u00a0third-party pricing service makes adjustments for the elapsed time from the trade date to the reporting date to take into\u00a0account available market information. Lacking recently reported trades, third-party pricing services and brokers will use modeling techniques to determine a security price where expected future cash flows are developed based on the performance of the underlying collateral and discounted using an estimated market rate.
Periodically, Aegon performs an analysis of the inputs obtained from third-party pricing services and brokers to ensure that the inputs are reasonable and produce a reasonable estimate of fair value. Aegon\u2019s asset specialists and investment valuation specialists consider both qualitative and quantitative factors as part of this analysis. Several examples of analytical procedures performed include, but are not limited to, recent transactional activity for similar debt securities, review of pricing statistics and trends and consideration of recent relevant market events. Other controls and procedures over pricing received from indices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant price changes, stale prices, or unpriced securities. In addition, Aegon performs back testing on a sample basis. Back testing involves selecting a sample of securities trades and comparing the prices in those transactions to prices used for financial reporting. Significant variances between the price used for financial reporting and the transaction price are investigated to explain the cause of the difference.
Credit ratings are also an important consideration in the valuation of securities and are included in the internal process for determining Aegon\u2019s view of the risk associated with each security. However, Aegon does not rely solely on external credit ratings and there is an internal process, based on market observable inputs, for determining Aegon\u2019s view of the risks associated with each security.
Aegon\u2019s portfolio of private placement securities (held at fair value under the classification of fair value through OCI or fair value through profit or loss) is valued using a matrix pricing methodology. The pricing matrix is obtained from a third-party service provider and indicates current spreads for securities based on weighted average life, credit rating, and industry sector. Each month, Aegon\u2019s asset specialists review the matrix to ensure the spreads are reasonable by comparing them to observed spreads for similar bonds traded in the market. Other inputs to the valuation include coupon rate, the current interest rate curve used for discounting and a liquidity premium to account for the illiquid nature of these securities. The\u00a0liquidity premiums are determined based upon the pricing of recent transactions in the private placements market; comparing the value of the privately offered security to a similar public security. The impact of the liquidity premium for private placement securities to the overall valuation is insignificant.
Aegon's portfolio of debt securities can be subdivided into residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), asset-backed securities (ABS), corporate bonds and government debt. Relevant details of the valuation methodologies for these specific types of debt securities are described below.
\nValuations of RMBS, CMBS and ABS are monitored and reviewed on a monthly basis. Valuations per asset type are based on\u00a0a\u00a0pricing hierarchy, which uses a waterfall approach that starts with market prices from indices and follows with third-party pricing services or brokers. The pricing hierarchy is dependent on the possibilities of corroboration of the market prices. If\u00a0no\u00a0market prices are available, Aegon uses internal models to determine fair value. Significant inputs included in the internal models are generally determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles. Market standard models may be used to model the specific collateral composition and cash flow structure of each transaction. The most significant unobservable input is the liquidity premium which is embedded in\u00a0the discount\u00a0rate.\u200b\u200b\u200b\u200b
\nValuations of corporate bonds are monitored and reviewed on a monthly basis. The pricing hierarchy is dependent on the possibility of corroboration of market prices when available. If no market prices are available, valuations are determined by a discounted cash flow methodology using an internally calculated yield. The yield is comprised of a credit spread over a given benchmark. In all cases, the benchmark is an observable input. The credit spread contains both observable and unobservable inputs. Aegon starts by taking an observable credit spread from a similar bond of the given issuer, and then adjust this spread based on unobservable inputs. These unobservable inputs may include subordination, liquidity and maturity differences. During 2024, there were no corporate bonds that met the policy threshold to be internally modeled.
\nWhen available, Aegon uses quoted market prices in active markets to determine the fair value of its government debt investments. When Aegon cannot make use of quoted market prices, market prices from indices or quotes from third-party pricing services or brokers are used.
\nThe fair value of assets maturing within a year is assumed to be approximated by their carrying amount adjusted for credit risk where appropriate. Credit risk adjustments are based on market observable credit spreads if available, or management\u2019s estimate if not market observable.
\nThe Level III fair value of tax credit investments is determined by using a discounted cash flow valuation technique. This valuation technique takes into consideration projections of future capital contributions and distributions, as well as future tax credits and the tax benefits of future operating losses. The present value of these cash flows is calculated by applying a discount rate. In general, the discount rate is determined based on the cash outflows for the investments and the cash inflows from the tax credits and/or tax benefits (and the timing of these cash flows). These inputs are unobservable in the marketplace. The discount rate used in valuation of tax credit investments was 6.7% (December 31, 2023: 6.9%).
\nThe fair values of investments held in non-quoted investment funds are determined by management after taking into consideration information provided by the fund managers. Aegon reviews the valuations each month and performs analytical procedures and trending analyses to ensure the fair values are appropriate. The net asset value is considered the best valuation method that approximates the fair value of the funds.
\nFor private loans, fixed interest mortgage loans and other loans originated by the Group, the fair value used for disclosure purposes is estimated by discounting expected future cash flows using a current market rate applicable to financial instruments with similar yield and maturity characteristics. For fixed interest mortgage loans, the market rate is adjusted for expenses, prepayment rates, lapse assumptions (unobservable inputs), liquidity, and credit risk (market observable inputs). An\u00a0increase in expense spread, prepayment rates and/or prepayment assumptions, would decrease the fair value of the mortgage loan portfolio.
The fair value of floating interest rate mortgage loans, policy loans and private placements used for disclosure purposes is assumed to be approximated by their carrying amount, adjusted for changes in credit risk. Credit risk adjustments are based on market observable credit spreads if available, or management\u2019s estimate if not market observable.
\nWhere quoted market prices are not available, other valuation techniques, such as option pricing or stochastic modeling, are applied. The valuation techniques incorporate all factors that a typical market participant would consider and are based on observable market data when available. Models are validated before they are used and calibrated to ensure that outputs reflect actual experience and comparable market prices.
Fair values for exchange-traded derivatives, principally futures and certain options, are based on quoted market prices in active markets. Fair values for over-the-counter (OTC) derivative financial instruments represent amounts estimated to be received from or paid to a third party in the settlement of these instruments. These derivatives are valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other OTC trades, or external pricing services. Most valuations are derived from swap and volatility matrices, which are constructed for applicable indices and currencies using current market data from many industry-standard sources. Option pricing is based on industry standard valuation models and current market levels, where applicable. The pricing of complex or illiquid instruments is based on internal models or an independent third party. For long-dated illiquid contracts, extrapolation methods are applied to observed market data in order to estimate inputs and assumptions that are not directly observable. To value OTC derivatives, management uses observed market information, other trades in the market, and dealer prices.
Some OTC derivatives are so-called longevity derivatives. The payout of longevity derivatives is linked to publicly available mortality tables. The derivatives are measured using the present value of the best estimate of expected payouts of the derivative plus a risk margin. The best estimate of expected payouts is determined using best estimate of mortality developments. Aegon determined the risk margin by stressing the best estimate mortality developments to quantify the risk and applying a cost-of-capital methodology. Depending on the duration of the longevity swaps either the projected mortality development or discount rate are the most significant unobservable inputs.
Aegon normally mitigates counterparty credit risk in derivative contracts by entering into collateral agreements where practical and in ISDA master netting agreements for each of the Group\u2019s legal entities to facilitate Aegon\u2019s right to offset credit risk exposure. Changes in the fair value of derivatives attributable to changes in counterparty credit risk were not significant.
\nValuations of Level III investments in real estate and real estate held for own use are conducted in full by independent external appraisers at least every three to five years and reviewed at least once a year by qualified internal appraisers to ensure the value correctly reflects the fair value at the reporting date. Appraisals are different for each specific local market but are based on market guidelines such as International Valuation Standards, Uniform Standards of Professional Appraisal Practice, or guidelines issued by the Investment Property Databank. Valuations are mostly based on active market prices, adjusted for any difference in the nature, location or condition of the specific property. If such information is not available, other valuation methods are applied, considering the value that the property\u2019s net earning power will support, the value indicated by recent sales of comparable properties and the current cost of reproducing or replacing the property. Discount rates used in the valuation of real estate reflect the risk embedded in the projected cash flows for the asset being valued. Capitalization rates represent the income rate for a real estate property that reflects the relationship between a single year\u2019s net operating income expectancy and the total property price or value. For property held for own use, appraisers consider the present value of the future rental income cash flows that could be achieved had the real estate been rented to a third party.
\nTrust pass-through securities and subordinated borrowings are either carried at fair value (if they are designated as financial liabilities at fair value through profit or loss) or amortized cost (with fair value being disclosed in the notes to the consolidated financial statements). For the determination of the fair value of these instruments, the level hierarchy as described by IFRS is used. The preferred method of obtaining the fair value of the fair value option bonds is the quoted price (Level I). In cases were markets are less liquid or the quoted prices are not available, Aegon\u2019s valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from indices and third-party pricing services. The US trust pass-through securities and subordinated borrowings are classified as Level II of the fair value hierarchy.
\nInvestment contracts issued by Aegon are either carried at fair value (if they are designated as financial liabilities at fair value through profit or loss) or amortized cost (with fair value being disclosed in the notes to the consolidated financial statements). These contracts are not quoted in active markets and their fair values are determined by using valuation techniques, such as discounted cash flow methods and stochastic modeling or in relation to the unit price of the underlying assets. All models are validated and calibrated. A variety of factors are considered, including time value, volatility, policyholder behavior, servicing costs and fair values of similar instruments.
Certain investment products are not quoted in active markets and their fair values are determined by using valuation techniques. Because of the dynamic and complex nature of these cash flows, stochastic or similar techniques under a variety of market return scenarios are often used. A variety of factors are considered, including expected market rates of return, market volatility, correlations of market returns, discount rates and actuarial assumptions.
The expected returns are based on risk-free rates, such as the current Secured Overnight Financing Rate (SOFR) swap rates\u00a0and associated forward rates, the\u00a0Overnight Index Swap (OIS) curve or the current rates on local government bonds. Market volatility assumptions for each underlying index are based on observed market implied volatility data and/or observed market performance. Correlations of market returns for various underlying indices are based on observed market returns and their interrelationships over a number of years preceding the valuation date. Current risk-free spot rates are used to determine the present value of expected future cash flows produced in the stochastic projection process.
Assumptions on customer behavior, such as lapses, included in the models are derived in the same way as the assumptions used to measure insurance liabilities.
\nThe table that follows summarizes the carrying amounts of financial assets and financial liabilities that are classified as fair value through profit or loss, with appropriate distinction between those financial assets and financial liabilities held for trading and those that, upon initial recognition, were designated as fair value through profit or loss.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments where Aegon bears the risk | \n \n \n 7,661 | \n \n \n 2,356 | \n \n \n 9,386 | \n \n \n 2,526 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n - | \n \n \n 218,281 | \n \n \n - | \n \n \n 193,823 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 606 | \n \n \n - | \n \n \n 1,238 | \n \n \n - | \n
| \n \n Total financial assets at fair value through profit or loss | \n \n \n 8,267 | \n \n \n 220,637 | \n \n \n 10,625 | \n \n \n 196,349 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 79,078 | \n \n \n - | \n \n \n 65,044 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 1,331 | \n \n \n - | \n \n \n 1,466 | \n \n \n - | \n
| \n \n Total financial liabilities at fair value through profit or loss | \n \n \n 1,331 | \n \n \n 79,078 | \n \n \n 1,466 | \n \n \n 65,044 | \n
Aegon has certain insurance and investment liabilities that are carried at fair value with changes in the fair value recognized in the income statement. The Group has elected to designate the investments backing those liabilities at fair value through profit or loss, as a classification of fair value through OCI would result in accumulation of unrealized gains and losses in a revaluation reserve within equity while changes to the liability would be reflected in net result (accounting mismatch).
\nInvestments where the policyholder bears the risk comprise assets that are linked to various insurance and investment contracts for which the financial risks are borne by the customer. Under the Group\u2019s accounting policies these insurance and\u00a0investment liabilities are measured at the fair value of the linked assets with changes in the fair value recognized in the\u00a0income statement. To avoid an accounting mismatch the linked assets have been designated as fair value through profit or\u00a0loss.
In addition, investments where policyholders bear the risk include profit assets, whereby Aegon manages the assets together with related liabilities on a fair value basis in accordance with a documented policy of asset and liability management. In accordance with the Group\u2019s accounting policies, these assets have been designated as fair value through profit or loss.
\nWith the exception of the financial liabilities with discretionary participating features that are not subject to the classification and measurement requirements for financial instruments, all investment contracts without discretionary participating features where the policyholder bears the risk, are carried at fair value or at the fair value of the linked assets are included in the table above.
\nWith the exception of derivatives designated as a hedging instrument, all derivatives are included in the table above.
\nGains and losses recognized in the income statement on financial assets and financial liabilities classified as fair value through profit or loss can be summarized as follows:
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n \n \n Net gains and (losses) \n | \n \n \n \n \n (1,643) \n | \n \n \n 20,912 | \n \n \n \n \n (1,244) \n | \n \n \n 21,207 | \n
Changes in the fair value of investment contracts without discretionary participating features where the policyholders bear the risk that are designated at fair value through profit or loss were not attributable to changes in Aegon\u2019s credit spread. There\u00a0are also no differences between the carrying amounts of these financial liabilities and the contractual amounts payable at maturity (net of surrender penalties).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1336m1274p": { "value": "\nThe following table sets out the fair values of financial instruments by the level of the fair value hierarchy into which each fair value measurement is categorized. It does not include fair value information for cash and cash equivalents, receivables, and payables, whose carrying amounts are a reasonable approximation of fair value, or for lease liabilities.
| \n | \n\n \n 2024 | \n |||
| \n \n Fair value hierarchy | \n \n \n Level I | \n \n \n Level II | \n \n \n Level III | \n \n \n Total | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 34 | \n \n \n - | \n \n \n 4 | \n \n \n 39 | \n
| \n \n Debt securities | \n \n \n 5,170 | \n \n \n 46,242 | \n \n \n 799 | \n \n \n 52,211 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,388 | \n \n \n 47 | \n \n \n - | \n \n \n 2,435 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 31 | \n \n \n - | \n \n \n 31 | \n
| \n | \n\n \n 7,592 | \n \n \n 46,320 | \n \n \n 803 | \n \n \n 54,715 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 163 | \n \n \n 30 | \n \n \n 86 | \n \n \n 279 | \n
| \n \n Debt securities | \n \n \n 308 | \n \n \n 1,970 | \n \n \n 107 | \n \n \n 2,385 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,961 | \n \n \n 135 | \n \n \n - | \n \n \n 2,096 | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n 82 | \n
| \n \n Other investments at fair value | \n \n \n 1 | \n \n \n 718 | \n \n \n 4,457 | \n \n \n 5,176 | \n
| \n \n Derivatives | \n \n \n 30 | \n \n \n 732 | \n \n \n 9 | \n \n \n 771 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 57 | \n \n \n 57 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 457 | \n \n \n 457 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 97,682 | \n \n \n 119,829 | \n \n \n 312 | \n \n \n 217,824 | \n
| \n | \n\n \n 100,146 | \n \n \n 123,414 | \n \n \n 5,567 | \n \n \n 229,127 | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n 66 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 107,738 | \n \n \n 169,734 | \n \n \n 6,436 | \n \n \n 283,908 | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 79,078 | \n \n \n - | \n \n \n 79,078 | \n
| \n \n Derivatives | \n \n \n 53 | \n \n \n 2,382 | \n \n \n - | \n \n \n 2,435 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 53 | \n \n \n 81,460 | \n \n \n - | \n \n \n 81,513 | \n
| \n | \n\n \n 2023 | \n |||
| \n \n Fair value hierarchy | \n \n \n Level I | \n \n \n Level II | \n \n \n Level III | \n \n \n Total | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 5 | \n \n \n - | \n \n \n 4 | \n \n \n 10 | \n
| \n \n Debt securities | \n \n \n 5,644 | \n \n \n 41,031 | \n \n \n 516 | \n \n \n 47,191 | \n
| \n \n Money market and other short-term investments | \n \n \n 3,028 | \n \n \n 97 | \n \n \n 9 | \n \n \n 3,135 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 29 | \n \n \n - | \n \n \n 29 | \n
| \n | \n\n \n 8,678 | \n \n \n 41,157 | \n \n \n 530 | \n \n \n 50,364 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 153 | \n \n \n 43 | \n \n \n 94 | \n \n \n 291 | \n
| \n \n Debt securities | \n \n \n 302 | \n \n \n 2,009 | \n \n \n 86 | \n \n \n 2,396 | \n
| \n \n Money market and other short-term investments | \n \n \n 4,041 | \n \n \n 173 | \n \n \n - | \n \n \n 4,215 | \n
| \n \n Other investments at fair value | \n \n \n 1 | \n \n \n 773 | \n \n \n 4,237 | \n \n \n 5,011 | \n
| \n \n Derivatives | \n \n \n 47 | \n \n \n 1,374 | \n \n \n 8 | \n \n \n 1,429 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 55 | \n \n \n 55 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 433 | \n \n \n 433 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 90,027 | \n \n \n 103,022 | \n \n \n 342 | \n \n \n 193,390 | \n
| \n | \n\n \n 94,570 | \n \n \n 107,395 | \n \n \n 5,255 | \n \n \n 207,220 | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n - | \n \n \n - | \n \n \n 61 | \n \n \n 61 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 103,248 | \n \n \n 148,551 | \n \n \n 5,846 | \n \n \n 257,645 | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 65,044 | \n \n \n - | \n \n \n 65,044 | \n
| \n \n Derivatives | \n \n \n 39 | \n \n \n 2,434 | \n \n \n 6 | \n \n \n 2,479 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 39 | \n \n \n 67,478 | \n \n \n 6 | \n \n \n 67,523 | \n
Aegon\u2019s policy is to record transfers of assets and liabilities between Level I, Level II and Level III at their fair values from the beginning of each reporting period.
The table below shows transfers between Level I and Level II for financial assets and financial liabilities recorded at fair value on a recurring basis.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n \n Significant transfers between level I, level II and level III | \n \n \n Transfers Level I to Level II | \n \n \n Transfers Level II to Level I | \n \n \n Transfers Level I to Level II | \n \n \n Transfers Level II to Level I | \n
| \n \n Assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n 308 | \n \n \n 261 | \n \n \n - | \n \n \n 141 | \n
| \n \n Money market and other short-term investments | \n \n \n 48 | \n \n \n - | \n \n \n 45 | \n \n \n 245 | \n
| \n | \n\n \n 356 | \n \n \n 261 | \n \n \n 45 | \n \n \n 386 | \n
| \n \n Financial assets measured at fair value through profit or loss | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n 11 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n
| \n \n Money market and other short-term investments | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 795 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n - | \n
| \n | \n\n \n 11 | \n \n \n 4 | \n \n \n 1 | \n \n \n 795 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 367 | \n \n \n 265 | \n \n \n 46 | \n \n \n 1,182 | \n
Transfers are identified based on transaction volume and frequency, which are indicative of an active market.
\nThe following table summarizes the change of all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level III), including realized and unrealized gains (losses) of all assets and liabilities and unrealized gains (losses) of all assets and liabilities still held at the end of the respective period.
| \n \n Financial assets carried at fair value | \n \n \n On January 1, 2024 | \n \n \n Total gains / losses in income state- ment 1 | \n \n \n Total gains / losses in OCI 2 | \n \n \n Purch- ases | \n \n \n Sales | \n \n \n Settle- ments | \n \n \n Net ex- change diffe- rence | \n \n \n Reclas- sifica- tion | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total unrealized gains and losses recorded in the P&L for instruments held at December 31, 2024 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 516 | \n \n \n 9 | \n \n \n \n \n (27) \n | \n \n \n 218 | \n \n \n \n \n (126) \n | \n \n \n \n \n (41) \n | \n \n \n 44 | \n \n \n - | \n \n \n 301 | \n \n \n \n \n (96) \n | \n \n \n 799 | \n \n \n - | \n
| \n \n Money markets and other short-term investments | \n \n \n 9 | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 530 | \n \n \n 9 | \n \n \n \n \n (36) \n | \n \n \n 218 | \n \n \n \n \n (126) \n | \n \n \n \n \n (41) \n | \n \n \n 44 | \n \n \n - | \n \n \n 301 | \n \n \n \n \n (96) \n | \n \n \n 803 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 94 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n 16 | \n \n \n \n \n (27) \n | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 86 | \n \n \n \n \n (5) \n | \n
| \n \n Debt securities | \n \n \n 86 | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n 18 | \n \n \n \n \n (14) \n | \n \n \n \n \n (5) \n | \n \n \n 6 | \n \n \n - | \n \n \n 53 | \n \n \n \n \n (18) \n | \n \n \n 107 | \n \n \n \n \n (18) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n 68 | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n - | \n
| \n \n Other investments at fair value | \n \n \n 4,237 | \n \n \n \n \n (175) \n | \n \n \n - | \n \n \n 505 | \n \n \n \n \n (323) \n | \n \n \n - | \n \n \n 280 | \n \n \n \n \n (68) \n | \n \n \n - | \n \n \n - | \n \n \n 4,457 | \n \n \n \n \n (206) \n | \n
| \n \n Derivatives | \n \n \n 8 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 1 | \n
| \n \n Investments in real estate | \n \n \n 55 | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 57 | \n \n \n - | \n
| \n \n Investments in real estate for policyholders | \n \n \n 433 | \n \n \n 9 | \n \n \n - | \n \n \n 26 | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n 21 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 457 | \n \n \n 59 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 342 | \n \n \n 3 | \n \n \n - | \n \n \n 62 | \n \n \n \n \n (112) \n | \n \n \n - | \n \n \n 18 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 312 | \n \n \n 1 | \n
| \n | \n\n \n 5,255 | \n \n \n \n \n (183) \n | \n \n \n - | \n \n \n 638 | \n \n \n \n \n (511) \n | \n \n \n \n \n (5) \n | \n \n \n 338 | \n \n \n - | \n \n \n 53 | \n \n \n \n \n (18) \n | \n \n \n 5,567 | \n \n \n \n \n (169) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n 64 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n \n \n (1) \n | \n
| \n | \n\n \n 64 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 66 | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets measured at fair value | \n \n \n 5,849 | \n \n \n \n \n (174) \n | \n \n \n \n \n (37) \n | \n \n \n 857 | \n \n \n \n \n (638) \n | \n \n \n \n \n (45) \n | \n \n \n 385 | \n \n \n - | \n \n \n 354 | \n \n \n \n \n (114) \n | \n \n \n 6,436 | \n \n \n \n \n (169) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 6 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Financial assets carried at fair value | \n \n \n On January 1, 2023 | \n \n \n Total gains / losses in income state- ment 1 | \n \n \n Total gains / losses in OCI 2 | \n \n \n Purch- ases | \n \n \n Sales | \n \n \n Settle- ments | \n \n \n Net ex- change diffe- rence | \n \n \n Reclas- sifica- tion | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total unrealized gains and losses recorded in the P&L for instruments held at December 31, 2023 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 181 | \n \n \n \n \n (1) \n | \n \n \n 11 | \n \n \n 263 | \n \n \n \n \n (124) \n | \n \n \n \n \n (15) \n | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 214 | \n \n \n \n \n (1) \n | \n \n \n 516 | \n \n \n - | \n
| \n \n Money markets and other short-term investments | \n \n \n 5 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n - | \n
| \n | \n\n \n 191 | \n \n \n \n \n (1) \n | \n \n \n 15 | \n \n \n 263 | \n \n \n \n \n (124) \n | \n \n \n \n \n (15) \n | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 214 | \n \n \n \n \n (1) \n | \n \n \n 530 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 127 | \n \n \n 2 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (47) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 94 | \n \n \n 3 | \n
| \n \n Debt securities | \n \n \n 35 | \n \n \n 17 | \n \n \n - | \n \n \n 38 | \n \n \n \n \n (43) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n 46 | \n \n \n - | \n \n \n 86 | \n \n \n \n \n (8) \n | \n
| \n \n Money markets and other short-term investments | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n
| \n \n Other investments at fair value | \n \n \n 4,050 | \n \n \n \n \n (65) \n | \n \n \n - | \n \n \n 652 | \n \n \n \n \n (254) \n | \n \n \n - | \n \n \n \n \n (144) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,237 | \n \n \n \n \n (70) \n | \n
| \n \n Derivatives | \n \n \n 11 | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n \n \n \n \n (3) \n | \n
| \n \n Investments in real estate | \n \n \n 59 | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 55 | \n \n \n - | \n
| \n \n Investments in real estate for policyholders | \n \n \n 443 | \n \n \n \n \n (52) \n | \n \n \n - | \n \n \n 42 | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 433 | \n \n \n \n \n (42) \n | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n 402 | \n \n \n \n \n (37) \n | \n \n \n - | \n \n \n 37 | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 342 | \n \n \n - | \n
| \n | \n\n \n 5,128 | \n \n \n \n \n (136) \n | \n \n \n - | \n \n \n 782 | \n \n \n \n \n (422) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (142) \n | \n \n \n - | \n \n \n 51 | \n \n \n \n \n (2) \n | \n \n \n 5,255 | \n \n \n \n \n (120) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Revalued amounts | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Real estate held for own use | \n \n \n 73 | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 64 | \n \n \n - | \n
| \n | \n\n \n 73 | \n \n \n \n \n (3) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 64 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets measured at fair value | \n \n \n 5,392 | \n \n \n \n \n (141) \n | \n \n \n 13 | \n \n \n 1,044 | \n \n \n \n \n (546) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (157) \n | \n \n \n - | \n \n \n 265 | \n \n \n \n \n (3) \n | \n \n \n 5,849 | \n \n \n \n \n (120) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial liabilities carried at fair value | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Derivatives | \n \n \n 12 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n
| \n | \n\n \n 12 | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n \n \n - | \n
In 2023 and 2024, Aegon transferred certain financial instruments from Level I and II to Level III of the fair value hierarchy. The\u00a0reason for the change in level was that the market liquidity for these securities decreased, which led to a change in\u00a0market observability of prices. Prior to transfer, the fair value for the Level II securities was determined using observable market transactions, internal models or corroborated broker quotes respectively for the same or similar instruments. Since\u00a0the\u00a0transfer, all such assets have been valued using valuation models incorporating significant non-market-observable inputs or\u00a0uncorroborated broker quotes.
Similarly, during 2023 and 2024, Aegon transferred certain financial instruments from Level III to Level I and II of the fair value hierarchy. The change in level was mainly the result of a return of activity in the market for these securities, and that for these securities the fair value could be determined using observable market transactions or corroborated broker quotes for the same or similar instruments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5724m3783p": { "value": "\nThe table that follows summarizes the carrying amounts of financial assets and financial liabilities that are classified as fair value through profit or loss, with appropriate distinction between those financial assets and financial liabilities held for trading and those that, upon initial recognition, were designated as fair value through profit or loss.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments where Aegon bears the risk | \n \n \n 7,661 | \n \n \n 2,356 | \n \n \n 9,386 | \n \n \n 2,526 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n - | \n \n \n 218,281 | \n \n \n - | \n \n \n 193,823 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 606 | \n \n \n - | \n \n \n 1,238 | \n \n \n - | \n
| \n \n Total financial assets at fair value through profit or loss | \n \n \n 8,267 | \n \n \n 220,637 | \n \n \n 10,625 | \n \n \n 196,349 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 79,078 | \n \n \n - | \n \n \n 65,044 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 1,331 | \n \n \n - | \n \n \n 1,466 | \n \n \n - | \n
| \n \n Total financial liabilities at fair value through profit or loss | \n \n \n 1,331 | \n \n \n 79,078 | \n \n \n 1,466 | \n \n \n 65,044 | \n
Aegon has certain insurance and investment liabilities that are carried at fair value with changes in the fair value recognized in the income statement. The Group has elected to designate the investments backing those liabilities at fair value through profit or loss, as a classification of fair value through OCI would result in accumulation of unrealized gains and losses in a revaluation reserve within equity while changes to the liability would be reflected in net result (accounting mismatch).
\nWith the exception of derivatives designated as a hedging instrument, all derivatives are included in the table above.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialAssetsHeldForTradingExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5741m3789p": { "value": "\nThe table that follows summarizes the carrying amounts of financial assets and financial liabilities that are classified as fair value through profit or loss, with appropriate distinction between those financial assets and financial liabilities held for trading and those that, upon initial recognition, were designated as fair value through profit or loss.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments where Aegon bears the risk | \n \n \n 7,661 | \n \n \n 2,356 | \n \n \n 9,386 | \n \n \n 2,526 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n - | \n \n \n 218,281 | \n \n \n - | \n \n \n 193,823 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 606 | \n \n \n - | \n \n \n 1,238 | \n \n \n - | \n
| \n \n Total financial assets at fair value through profit or loss | \n \n \n 8,267 | \n \n \n 220,637 | \n \n \n 10,625 | \n \n \n 196,349 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 79,078 | \n \n \n - | \n \n \n 65,044 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 1,331 | \n \n \n - | \n \n \n 1,466 | \n \n \n - | \n
| \n \n Total financial liabilities at fair value through profit or loss | \n \n \n 1,331 | \n \n \n 79,078 | \n \n \n 1,466 | \n \n \n 65,044 | \n
Aegon has certain insurance and investment liabilities that are carried at fair value with changes in the fair value recognized in the income statement. The Group has elected to designate the investments backing those liabilities at fair value through profit or loss, as a classification of fair value through OCI would result in accumulation of unrealized gains and losses in a revaluation reserve within equity while changes to the liability would be reflected in net result (accounting mismatch).
\nWith the exception of derivatives designated as a hedging instrument, all derivatives are included in the table above.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialLiabilitiesHeldForTradingExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5745m3790p": { "value": "\nThe table that follows summarizes the carrying amounts of financial assets and financial liabilities that are classified as fair value through profit or loss, with appropriate distinction between those financial assets and financial liabilities held for trading and those that, upon initial recognition, were designated as fair value through profit or loss.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments where Aegon bears the risk | \n \n \n 7,661 | \n \n \n 2,356 | \n \n \n 9,386 | \n \n \n 2,526 | \n
| \n \n Investments where the policyholder bears the risk | \n \n \n - | \n \n \n 218,281 | \n \n \n - | \n \n \n 193,823 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 606 | \n \n \n - | \n \n \n 1,238 | \n \n \n - | \n
| \n \n Total financial assets at fair value through profit or loss | \n \n \n 8,267 | \n \n \n 220,637 | \n \n \n 10,625 | \n \n \n 196,349 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF where the policyholder bears the risk | \n \n \n - | \n \n \n 79,078 | \n \n \n - | \n \n \n 65,044 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 1,331 | \n \n \n - | \n \n \n 1,466 | \n \n \n - | \n
| \n \n Total financial liabilities at fair value through profit or loss | \n \n \n 1,331 | \n \n \n 79,078 | \n \n \n 1,466 | \n \n \n 65,044 | \n
Aegon has certain insurance and investment liabilities that are carried at fair value with changes in the fair value recognized in the income statement. The Group has elected to designate the investments backing those liabilities at fair value through profit or loss, as a classification of fair value through OCI would result in accumulation of unrealized gains and losses in a revaluation reserve within equity while changes to the liability would be reflected in net result (accounting mismatch).
\nWith the exception of derivatives designated as a hedging instrument, all derivatives are included in the table above.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsHeldForTradingExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5656m3765p": { "value": "\nIn the normal course of business, the Group has committed itself through purchase and sale transactions of investments, mostly to be executed in the course of 2025. The amounts represent the future outflow and inflow, respectively, of cash related to these investment transactions that are not reflected in the consolidated statement of financial position.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Purchase | \n \n \n Sale | \n \n \n Purchase | \n \n \n Sale | \n
| \n \n Real estate | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Mortgage loans | \n \n \n 189 | \n \n \n - | \n \n \n 421 | \n \n \n - | \n
| \n \n Private loans | \n \n \n 291 | \n \n \n - | \n \n \n 89 | \n \n \n - | \n
| \n \n Other | \n \n \n 1,205 | \n \n \n - | \n \n \n 1,292 | \n \n \n - | \n
Aegon has committed itself, through certain subsidiaries, to invest in real estate, private loans, mortgage loans and investment funds.
Mortgage loans represent undrawn mortgage loan facilities provided and outstanding proposals on mortgages. Private loans represent deals on Aegon's portfolio of private placement securities that Aegon has committed to,\u00a0but which have not yet settled and funded.\u00a0Other investments contracted include future purchases of interests in investment funds and limited partnerships.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Guarantees | \n \n \n 918 | \n \n \n 773 | \n
| \n \n Other guarantees | \n \n \n 6 | \n \n \n 7 | \n
Guarantees include those guarantees associated with the sale of investments in low-income housing tax credit partnerships in the United States, which can be called upon if there is a deficiency in the tax benefits delivered to the investor or if Aegon is in default under a material provision of the contract.\u00a0Standby letters of credit amounts reflected above are the liquidity commitment notional amounts. In addition to the guarantees shown in the table, guarantees have been given for the fulfillment of contractual obligations such as investment mandates related to investment funds.
The amount of collateral on financial guarantees is EUR 0 million on December 31, 2024 (2023: EUR 0 million), while other guarantees have EUR 1 million cash collateral at the end of 2024 (2023: EUR 1 million).
\nIn March 2019, affiliates of Transamerica Corporation and Illumifin, entered into a series of agreements to which Transamerica transferred to Illumifin the administration and claims management of its long-term-care insurance business line, enabling Transamerica to accelerate the enhancement of its digital capabilities and modernize its long-term-care insurance platform. Over the course of the multi-year contract, Transamerica will pay approximately USD 390 million to Illumifin. These fees represent compensation for administering Transamerica\u2019s long-term-care product line, including policyholder service, claims processing and care management. The agreement also contains a termination clause in which Transamerica \u2013 subject to certain limitations \u2013 agrees to compensate Illumifin\u200b\u200b\u200b\u200b\u200b\u200b\u200b, on a specified schedule, for early termination.
In April 2018, affiliates of Transamerica Corporation entered into a series of agreements with affiliates of Tata Consultancy Services Limited (TCS) to administer the Company\u2019s US life insurance, voluntary benefits and annuity business lines. The intent of the relationship was for Transamerica to accelerate the enhancement of its digital capabilities and the modernization of its platforms to service its customers in all lines of business. In May 2023, due to the macroeconomic environment and the parties\u2019 respective business priorities, Transamerica and TCS mutually agreed to end the administration arrangement for life, annuity and voluntary benefits lines of business. Transamerica and TCS agreed to work together to ensure a smooth transition of the administration to a new servicing model which aims to take approximately 30 months.\u00a0
In November 2018, Aegon UK announced an extended partnership with Atos BPS Ltd. (Atos) to service and administer its Traditional Products Business (non-Platform customers). The agreement is a 15-year contract under which Aegon UK pays Atos to administer around 1.4 million customers, which took effect on June 1, 2019 as planned. At year-end 2024, outstanding transition and conversion charges are estimated to amount to approximately GBP 5 million, of which GBP 3 million is expected to be recorded over the next year with a further GBP 2 million in 2026, with fixed payments to Atos defined in the agreement and subject to completion of milestones, which have been agreed with Aegon UK.
An Aegon Ltd. indirect US life subsidiary Transamerica Life Insurance Company (\"TLIC\") has a net worth maintenance agreement with its subsidiary Transamerica Life (Bermuda) Ltd. (\"TLB\"), pursuant to which TLIC will provide capital sufficient for TLB to maintain a tangible net worth of the greater of 165% of Standard & Poor's Risk Based Capital and the minimum required to comply with the requirements of the jurisdictions in which TLB operates.
Aegon has guaranteed and is severally liable for the following:
Due and punctual payment of payables under letter of credit agreements applied for by Aegon as co-applicant with its captive insurance companies that are subsidiaries of Transamerica Corporation and Commonwealth General Corporation. On December 31, 2024, the letter of credit arrangements utilized by captives to provide collateral to affiliates amounted to EUR 88 million (2023: EUR 526 million); from that date no amounts had been drawn, or were due under these facilities;
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 1,808 million (2023: EUR 1,007 million); and
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 from December 31, 2024.
Aegon faces significant risks of litigation as well as regulatory exams and investigations and actions relating to its and its subsidiaries\u2019 businesses. Aegon is also subject to compliance with regulations applicable to it as a corporate entity.
Due to the geographic spread of its business, Aegon Group may be subject to tax audits or litigation in various jurisdictions. Although uncertainties are provided for adequately in the tax position, the ultimate outcome of tax audits or litigation may result in an outcome that differs from the amounts provided for.
Insurance companies and their affiliated regulated entities are routinely subject to litigation, investigation and regulatory activity by various governmental and enforcement authorities, individual claimants, policyholder advocate groups and third parties in the jurisdictions in which Aegon does business, including the United States and the United Kingdom. These actions may involve issues including, but not limited to, employment or distribution relationships; operational and internal controls and processes; investment returns; sales practices; transparency and adequacy of product disclosures including regarding initial costs, ongoing costs and costs due on policy surrender as well as changes to costs over time; environmental and climate change related matters; competition and antitrust matters; data privacy; information security; intellectual property; and anti-money laundering, anti-bribery and economic sanctions compliance.
Over time, Aegon has made a number of acquisitions and divestments around the world, including in the Netherlands, Central and Eastern Europe, the United States and the United Kingdom. Acquisitions and divestments involve risks, including the risk of losses resulting from claims or litigation related to contractual terms such as representations, warranties and indemnifications.
Government and regulatory investigations may result in the institution of administrative, injunctive or other proceedings and/or\u00a0the imposition of monetary fines, penalties and/or disgorgement as well as other remedies, sanctions, damages and restitutionary amounts. Regulators may also seek changes to the way Aegon operates. In some cases, Aegon subsidiaries have modified business practices in response to inquiries.
Customers of certain Aegon products bear significant investment risks with respect to those products, which are affected by fluctuations in equity markets as well as interest rate movements. When investment returns disappoint, are volatile, or change due to changes in the market or other relevant conditions, customers may threaten or bring litigation against Aegon. Disputes and investigations initiated by governmental entities and private parties may lead to orders or settlements including payments or changes to business practices even if Aegon believes the underlying claims are without merit.\u00a0
The existence of potential claims may remain unknown for long periods of time after the events giving rise to such claims. Determining the likelihood of exposure to Aegon and the extent of any such exposure may not be possible for long periods of\u00a0time after Aegon becomes aware of such potential claims. Litigation exposure may develop over long periods of time; once litigation is initiated, it may be protracted and subject to multiple levels of appeal, which can lead to significant costs of defense, adverse publicity and other constraints.
In some jurisdictions, plaintiffs may seek recovery of very large or indeterminate amounts under claims of bad faith, which can\u00a0result in tort, punitive and/or statutory damages. Damages alleged may not be quantifiable or supportable or may have no relationship to economic losses or final awards. As a result, Aegon cannot predict the effect of litigation, investigations or other actions on its business.\u00a0
Separate from financial loss, litigation, regulatory action, legislative changes or changes in public opinion may require Aegon to change its business practices, which could have a material adverse impact on Aegon\u2019s businesses, results of operations, cash flows and financial position.
\nA US based Aegon subsidiary is defending against a putative class action alleging that it improperly failed to pay bonuses in a block of universal life policies. The company believed the claims were barred by a previous settlement and the initial trial court agreed; however, a court of appeals disagreed with this position and the case is now proceeding in federal court in California. While the company is continuing to assess its potential exposure and opportunities to mitigate that potential exposure, these claims could result in a significant expense to the company.
Several US insurers, including Aegon subsidiaries, have been named in litigation relating to increases in monthly deduction rates (MDR) on universal life products. Plaintiffs generally allege that the increases were made to recoup past losses rather than to cover the future costs of providing insurance coverage. Aegon\u2019s subsidiary in the US has one pending related class action. This case was filed in October 2022 and relates to MDR increases in 2022 and 2023. That case is venued in the state of Iowa in federal court. At this time, Aegon is unable to reliably estimate the potential exposure in this case.
US based Aegon subsidiaries may face employment-related lawsuits from time to time. For example, several US-based Aegon subsidiaries have reached a settlement in a putative class action alleging that the subsidiaries mischaracterized agents as independent contractors instead of employees. This settlement is subject to court approval. Litigation provisions have been adjusted to account for this pending resolution. Claims like this against US-based subsidiaries could result in significant settlements or judgments and could necessitate a change in the distribution model, which would be costly and could have a material impact on the financial results for that part of the US business.
A former subsidiary of Transamerica Corporation was involved in a contractual dispute with a Nigerian travel broker that arose in 1976. A Nigerian court eventually issued a judgment in favor of the plaintiff of approximately USD 120 million. On appeal, this decision was reversed and remanded back to the trial court which dismissed the case. The plaintiff appealed the court\u2019s dismissal, but subsequently died. An application to substitute plaintiff-appellant is pending (a hearing date has not yet been determined). Aegon has no material assets located in Nigeria.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5660m1270p": { "value": "\nIn the normal course of business, the Group has committed itself through purchase and sale transactions of investments, mostly to be executed in the course of 2025. The amounts represent the future outflow and inflow, respectively, of cash related to these investment transactions that are not reflected in the consolidated statement of financial position.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Purchase | \n \n \n Sale | \n \n \n Purchase | \n \n \n Sale | \n
| \n \n Real estate | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Mortgage loans | \n \n \n 189 | \n \n \n - | \n \n \n 421 | \n \n \n - | \n
| \n \n Private loans | \n \n \n 291 | \n \n \n - | \n \n \n 89 | \n \n \n - | \n
| \n \n Other | \n \n \n 1,205 | \n \n \n - | \n \n \n 1,292 | \n \n \n - | \n
Aegon has committed itself, through certain subsidiaries, to invest in real estate, private loans, mortgage loans and investment funds.
Mortgage loans represent undrawn mortgage loan facilities provided and outstanding proposals on mortgages. Private loans represent deals on Aegon's portfolio of private placement securities that Aegon has committed to,\u00a0but which have not yet settled and funded.\u00a0Other investments contracted include future purchases of interests in investment funds and limited partnerships.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Guarantees | \n \n \n 918 | \n \n \n 773 | \n
| \n \n Other guarantees | \n \n \n 6 | \n \n \n 7 | \n
Guarantees include those guarantees associated with the sale of investments in low-income housing tax credit partnerships in the United States, which can be called upon if there is a deficiency in the tax benefits delivered to the investor or if Aegon is in default under a material provision of the contract.\u00a0Standby letters of credit amounts reflected above are the liquidity commitment notional amounts. In addition to the guarantees shown in the table, guarantees have been given for the fulfillment of contractual obligations such as investment mandates related to investment funds.
The amount of collateral on financial guarantees is EUR 0 million on December 31, 2024 (2023: EUR 0 million), while other guarantees have EUR 1 million cash collateral at the end of 2024 (2023: EUR 1 million).
\nIn March 2019, affiliates of Transamerica Corporation and Illumifin, entered into a series of agreements to which Transamerica transferred to Illumifin the administration and claims management of its long-term-care insurance business line, enabling Transamerica to accelerate the enhancement of its digital capabilities and modernize its long-term-care insurance platform. Over the course of the multi-year contract, Transamerica will pay approximately USD 390 million to Illumifin. These fees represent compensation for administering Transamerica\u2019s long-term-care product line, including policyholder service, claims processing and care management. The agreement also contains a termination clause in which Transamerica \u2013 subject to certain limitations \u2013 agrees to compensate Illumifin\u200b\u200b\u200b\u200b\u200b\u200b\u200b, on a specified schedule, for early termination.
In April 2018, affiliates of Transamerica Corporation entered into a series of agreements with affiliates of Tata Consultancy Services Limited (TCS) to administer the Company\u2019s US life insurance, voluntary benefits and annuity business lines. The intent of the relationship was for Transamerica to accelerate the enhancement of its digital capabilities and the modernization of its platforms to service its customers in all lines of business. In May 2023, due to the macroeconomic environment and the parties\u2019 respective business priorities, Transamerica and TCS mutually agreed to end the administration arrangement for life, annuity and voluntary benefits lines of business. Transamerica and TCS agreed to work together to ensure a smooth transition of the administration to a new servicing model which aims to take approximately 30 months.\u00a0
In November 2018, Aegon UK announced an extended partnership with Atos BPS Ltd. (Atos) to service and administer its Traditional Products Business (non-Platform customers). The agreement is a 15-year contract under which Aegon UK pays Atos to administer around 1.4 million customers, which took effect on June 1, 2019 as planned. At year-end 2024, outstanding transition and conversion charges are estimated to amount to approximately GBP 5 million, of which GBP 3 million is expected to be recorded over the next year with a further GBP 2 million in 2026, with fixed payments to Atos defined in the agreement and subject to completion of milestones, which have been agreed with Aegon UK.
An Aegon Ltd. indirect US life subsidiary Transamerica Life Insurance Company (\"TLIC\") has a net worth maintenance agreement with its subsidiary Transamerica Life (Bermuda) Ltd. (\"TLB\"), pursuant to which TLIC will provide capital sufficient for TLB to maintain a tangible net worth of the greater of 165% of Standard & Poor's Risk Based Capital and the minimum required to comply with the requirements of the jurisdictions in which TLB operates.
Aegon has guaranteed and is severally liable for the following:
Due and punctual payment of payables under letter of credit agreements applied for by Aegon as co-applicant with its captive insurance companies that are subsidiaries of Transamerica Corporation and Commonwealth General Corporation. On December 31, 2024, the letter of credit arrangements utilized by captives to provide collateral to affiliates amounted to EUR 88 million (2023: EUR 526 million); from that date no amounts had been drawn, or were due under these facilities;
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 1,808 million (2023: EUR 1,007 million); and
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 from December 31, 2024.
| \n | \n\n \n 2024 | \n \n \n 2023 | \n
| \n \n Guarantees | \n \n \n 918 | \n \n \n 773 | \n
| \n \n Other guarantees | \n \n \n 6 | \n \n \n 7 | \n
Guarantees include those guarantees associated with the sale of investments in low-income housing tax credit partnerships in the United States, which can be called upon if there is a deficiency in the tax benefits delivered to the investor or if Aegon is in default under a material provision of the contract.\u00a0Standby letters of credit amounts reflected above are the liquidity commitment notional amounts. In addition to the guarantees shown in the table, guarantees have been given for the fulfillment of contractual obligations such as investment mandates related to investment funds.
The amount of collateral on financial guarantees is EUR 0 million on December 31, 2024 (2023: EUR 0 million), while other guarantees have EUR 1 million cash collateral at the end of 2024 (2023: EUR 1 million).
\nAegon faces significant risks of litigation as well as regulatory exams and investigations and actions relating to its and its subsidiaries\u2019 businesses. Aegon is also subject to compliance with regulations applicable to it as a corporate entity.
Due to the geographic spread of its business, Aegon Group may be subject to tax audits or litigation in various jurisdictions. Although uncertainties are provided for adequately in the tax position, the ultimate outcome of tax audits or litigation may result in an outcome that differs from the amounts provided for.
Insurance companies and their affiliated regulated entities are routinely subject to litigation, investigation and regulatory activity by various governmental and enforcement authorities, individual claimants, policyholder advocate groups and third parties in the jurisdictions in which Aegon does business, including the United States and the United Kingdom. These actions may involve issues including, but not limited to, employment or distribution relationships; operational and internal controls and processes; investment returns; sales practices; transparency and adequacy of product disclosures including regarding initial costs, ongoing costs and costs due on policy surrender as well as changes to costs over time; environmental and climate change related matters; competition and antitrust matters; data privacy; information security; intellectual property; and anti-money laundering, anti-bribery and economic sanctions compliance.
Over time, Aegon has made a number of acquisitions and divestments around the world, including in the Netherlands, Central and Eastern Europe, the United States and the United Kingdom. Acquisitions and divestments involve risks, including the risk of losses resulting from claims or litigation related to contractual terms such as representations, warranties and indemnifications.
Government and regulatory investigations may result in the institution of administrative, injunctive or other proceedings and/or\u00a0the imposition of monetary fines, penalties and/or disgorgement as well as other remedies, sanctions, damages and restitutionary amounts. Regulators may also seek changes to the way Aegon operates. In some cases, Aegon subsidiaries have modified business practices in response to inquiries.
Customers of certain Aegon products bear significant investment risks with respect to those products, which are affected by fluctuations in equity markets as well as interest rate movements. When investment returns disappoint, are volatile, or change due to changes in the market or other relevant conditions, customers may threaten or bring litigation against Aegon. Disputes and investigations initiated by governmental entities and private parties may lead to orders or settlements including payments or changes to business practices even if Aegon believes the underlying claims are without merit.\u00a0
The existence of potential claims may remain unknown for long periods of time after the events giving rise to such claims. Determining the likelihood of exposure to Aegon and the extent of any such exposure may not be possible for long periods of\u00a0time after Aegon becomes aware of such potential claims. Litigation exposure may develop over long periods of time; once litigation is initiated, it may be protracted and subject to multiple levels of appeal, which can lead to significant costs of defense, adverse publicity and other constraints.
In some jurisdictions, plaintiffs may seek recovery of very large or indeterminate amounts under claims of bad faith, which can\u00a0result in tort, punitive and/or statutory damages. Damages alleged may not be quantifiable or supportable or may have no relationship to economic losses or final awards. As a result, Aegon cannot predict the effect of litigation, investigations or other actions on its business.\u00a0
Separate from financial loss, litigation, regulatory action, legislative changes or changes in public opinion may require Aegon to change its business practices, which could have a material adverse impact on Aegon\u2019s businesses, results of operations, cash flows and financial position.
\nA US based Aegon subsidiary is defending against a putative class action alleging that it improperly failed to pay bonuses in a block of universal life policies. The company believed the claims were barred by a previous settlement and the initial trial court agreed; however, a court of appeals disagreed with this position and the case is now proceeding in federal court in California. While the company is continuing to assess its potential exposure and opportunities to mitigate that potential exposure, these claims could result in a significant expense to the company.
Several US insurers, including Aegon subsidiaries, have been named in litigation relating to increases in monthly deduction rates (MDR) on universal life products. Plaintiffs generally allege that the increases were made to recoup past losses rather than to cover the future costs of providing insurance coverage. Aegon\u2019s subsidiary in the US has one pending related class action. This case was filed in October 2022 and relates to MDR increases in 2022 and 2023. That case is venued in the state of Iowa in federal court. At this time, Aegon is unable to reliably estimate the potential exposure in this case.
US based Aegon subsidiaries may face employment-related lawsuits from time to time. For example, several US-based Aegon subsidiaries have reached a settlement in a putative class action alleging that the subsidiaries mischaracterized agents as independent contractors instead of employees. This settlement is subject to court approval. Litigation provisions have been adjusted to account for this pending resolution. Claims like this against US-based subsidiaries could result in significant settlements or judgments and could necessitate a change in the distribution model, which would be costly and could have a material impact on the financial results for that part of the US business.
A former subsidiary of Transamerica Corporation was involved in a contractual dispute with a Nigerian travel broker that arose in 1976. A Nigerian court eventually issued a judgment in favor of the plaintiff of approximately USD 120 million. On appeal, this decision was reversed and remanded back to the trial court which dismissed the case. The plaintiff appealed the court\u2019s dismissal, but subsequently died. An application to substitute plaintiff-appellant is pending (a hearing date has not yet been determined). Aegon has no material assets located in Nigeria.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5748m3791p": { "value": "\nThe following table reflects the carrying amount of financial assets that have been transferred to another party in such a way that part or all the transferred financial assets do not qualify for derecognition. Furthermore, it reflects the carrying amounts of the associated liabilities.
| \n | \n\n \n 2024 | \n |||||||
| \n | \n\n \n FVOCI financial assets | \n \n \n FVPL financial assets | \n ||||||
| \n | \n\n \n Shares | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Other | \n \n \n Debt securities | \n \n \n Investments where the PH bears risk | \n \n \n Money market and other short-term investments | \n \n \n Other | \n
| \n \n Carrying amount of transferred assets | \n \n \n - | \n \n \n 1,628 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 39 | \n \n \n - | \n \n \n - | \n
| \n \n Carrying amount of associated liabilities | \n \n \n - | \n \n \n 1,897 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 2023 | \n |||||||
| \n | \n\n \n FVOCI financial assets | \n \n \n FVPL financial assets | \n ||||||
| \n | \n\n \n Shares | \n \n \n Debt securities | \n \n \n Money market and other short-term investments | \n \n \n Other | \n \n \n Debt securities | \n \n \n Investments where the PH bears risk | \n \n \n Money market and other short-term investments | \n \n \n Other | \n
| \n \n Carrying amount of transferred assets | \n \n \n - | \n \n \n 2,068 | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n 15 | \n \n \n - | \n \n \n - | \n
| \n \n Carrying amount of associated liabilities | \n \n \n - | \n \n \n 2,382 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n - | \n
In transactions in which the Group neither retains nor transfers substantially all the risks and rewards of ownership of a\u00a0financial asset and it retains control over the asset, the Group continues to recognize the asset to the extent of its continuing involvement, determined by the extent to which it is exposed to changes in the value of the transferred asset.
\nThe table above includes financial assets that have been transferred to another party under securities lending and repurchase activities.
Aegon retains substantially all risks and rewards of those transferred assets, this includes credit risk, settlement risk, country\u00a0risk and market risk. The assets are transferred in return for cash collateral or other financial assets. Non-cash collateral is not recognized in the statement of financial position. Cash collateral is recorded on the statement of financial position as an asset and an offsetting liability is established for the same amount as Aegon is obligated to return this amount upon termination of the lending arrangement. Cash collateral is usually invested in pre-designated high quality investments. The\u00a0sum of cash and non-cash collateral is typically greater than the market value of the related securities loaned. See note\u00a040.3 Assets accepted and note\u00a040.4 Assets pledged for an analysis of collateral accepted and pledged in relation to securities lending and repurchase agreements.
\nAegon receives collateral related to securities lending, reverse repurchase activities, and derivative transactions. Non-cash collateral is not recognized in the statement of financial position. To the extent that cash is paid for reverse repurchase agreements, a receivable is recognized for the corresponding amount.\u00a0
The following tables present the fair value of the assets received in relation to securities lending and reverse repurchase activities:
| \n \n Securities lending | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Carrying amount of transferred financial assets | \n \n \n 1,668 | \n \n \n 2,063 | \n
| \n \n Fair value of cash collateral received | \n \n \n 1,898 | \n \n \n 2,357 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 41 | \n \n \n 16 | \n
| \n \n Net exposure | \n \n \n \n \n (271) \n | \n \n \n \n \n (309) \n | \n
| \n \n Reverse repurchase agreements | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Cash paid for reverse repurchase agreements | \n \n \n 324 | \n \n \n 442 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 343 | \n \n \n 467 | \n
| \n \n Net exposure | \n \n \n \n \n (20) \n | \n \n \n \n \n (24) \n | \n
The above items are conducted under terms that are usual and customary to standard securities lending activities, as well as requirements determined by exchanges where the bank acts as an intermediary.
For 2023 and 2024 there is no Non-cash collateral that can be sold or repledged in the absence of default and no Non-cash collateral has been sold or transferred.\u00a0
In addition, Aegon can receive collateral related to derivative transactions that it enters into. The credit support agreement will normally dictate the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of over-the-counter derivative trades, comprised mostly of interest rate swaps, currency swaps, and credit swaps. See the credit risk section in note\u00a04 Financial risks for details on collateral received for derivative transactions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRepurchaseAndReverseRepurchaseAgreementsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f6058m1277p": { "value": "\nIn February 2024, Aegon completed a strategic partnership with Nationwide Building Society (NBS) whereby Aegon acquired the existing financial planning service of NBS. The total consideration paid amounted to EUR 41 million and a deferred consideration of EUR 11 million. The total fair value of the customer-related intangible asset recognized amounts to EUR\u00a040\u00a0million, the goodwill recognized amounts EUR 23 million. The goodwill represents the value of the assembled workforce, platform cost synergies and the ability of the established business to increase returns on an assembled collection of\u00a0net\u00a0assets.
\nThere were no significant acquisitions in 2023.
\nOn February 28, 2022, Transamerica acquired a 100% equity interest in TAG Resources, LLC (TAG). TAG aggregates small to mid-market employer retirement plans (pooled-plan space) and provides administration and fiduciary oversight services as\u00a0a\u00a0third-party\u00a0administrator for such plans, including providing plan design, consulting, and compliance to plan sponsors. The\u00a0total consideration transferred amounted to EUR 33 million. Based on the purchase price allocation, the fair value of net assets amounted to EUR 17 million, resulting in goodwill of EUR 16 million. The acquisition did not have a material impact on Aegon\u2019s capital position or results.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1072m1050p": { "value": "\nThe principal subsidiaries of the parent company Aegon Ltd. are listed by geographical segment. All are wholly owned, directly or indirectly, unless stated otherwise, and are involved in insurance or reinsurance business, pensions, asset management or services related to these activities. The voting power in these subsidiaries held by Aegon is equal to the shareholdings.
\nTransamerica Casualty Insurance Company, Cedar Rapids, Iowa (United States)
Transamerica Corporation, Wilmington, Delaware (United States)
Transamerica Financial Life Insurance Company, Harrison, New York (United States)
Transamerica Life Insurance Company, Cedar Rapids, Iowa (United States)
World Financial Group Insurance Agency, LLC, Cedar Rapids, Iowa (United States)
Aegon Investment Solutions Ltd., Edinburgh
Aegon Investments Ltd., London\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Cofunds Limited, London
Scottish Equitable plc, Edinburgh
Origen Financial Services Limited, Farnborough
Aegon Espa\u00f1a S.A.U. de Seguros y Reaseguros, Madrid (Spain)
Transamerica Life (Bermuda) Ltd., Hamilton (Bermuda)
Aegon Asset Management Holding B.V., The Hague (The Netherlands)
Aegon Asset Management UK plc, Edinburgh (United Kingdom)
Aegon Investment Management B.V., The Hague (The Netherlands)
Aegon USA Investment Management, LLC, Cedar Rapids (United States)
Aegon USA Realty Advisors, LLC, Des Moines (United States)
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 Ltd. has issued a statement of liability as meant in Article 403 of\u00a0Book\u00a02 of the Dutch Civil Code for its subsidiary company Aegon Derivatives N.V.
\nThe principal joint ventures are listed by geographical segment. The voting powers in these joint ventures is equal to\u00a0the\u00a0shareholdings, unless stated otherwise.
\nSantander Generales Seguros y Reaseguros, S.A., Madrid (Spain)\u00a0(51%)
Santander Vida Seguros y Reaseguros, S.A., Madrid (Spain)\u00a0(51%)\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Aegon Santander Portugal N\u00e3o Vida \u2013 Companhia de Seguros S.A., Lisbon (Portugal)\u00a0(51%)
Aegon Santander Portugal Vida \u2013 Companhia de Seguros de Vida S.A., Lisbon (Portugal)\u00a0(51%)
Aegon THTF Life Insurance Co., Ltd., Shanghai (China) (50%)
Mongeral Aegon, Seguros e Previdencia S.A., Rio de Janeiro (Brazil)\u00a0(59.2%, where Aegon has 50% voting rights)\u200b\u200b\u200b\u200b
Sicoob Seguradode de Vida e Previd\u00eancia S.A., Rio de Janeiro (Brazil) (29.6%)
Aegon Industrial Fund Management Co., Ltd., Shanghai (China)\u00a0(49%)
See note 21 Investments in joint ventures and associates for further details on these investments.
\nThe principal investments in associates are listed by geographical segment.\u00a0The voting powers in these associates is equal to the shareholdings, unless stated otherwise.
\nASR Nederland N.V., Utrecht (29.95%)
Pursuant to the relationship agreement entered into with a.s.r. for a period of five years post closing (July 1, 2023), Aegon has an exclusive right to nominate up to two members of the Supervisory Board (if Aegon holds more than 20% of the shares it may nominate two members of which one qualifies as Independent Nominee and the other as Non-independent Nominee; if it holds 20% or less but more than 10% of the shares it may nominate one member who qualifies as Non-independent Nominee). In addition, Aegon has the\u00a0right to designate its nominees for the Audit and Risk Committee and the ESG Committee if certain conditions are met. Furthermore, in the event that the incumbent CEO of a.s.r. does not serve the full term due to earlier resignation or dismissal, the\u00a0appointment of the successor requires the unanimous vote of all Supervisory Directors in office.
For as long as Aegon holds more than 20% of the shares, the affirmative vote of the non-independent Aegon nominee is\u00a0required for:
significant changes to dividend policy (as per current stated a.s.r. policies);
certain dilutive transactions (issuance of equity or debt instruments); and
M&A transactions (acquisitions and divestments, joint ventures, and long-term co-operations) with a value exceeding
EUR\u00a0500\u00a0million.
Furthermore, for as long as Aegon holds more than 20% of the shares, the below needs the unanimous vote of all Supervisory Directors in office and the affirmative vote of the non-independent Aegon nominee:
material decisions on capital management, material reinsurance, and capital allocation / distribution, in each case to the extent this would result in a material change to the characteristics of the risk profile of (the enterprise of) a.s.r. and other than in the ordinary course of business.
Except for significant changes to the dividend policy, the same applies when Aegon holds 20% or less but more than 10% of\u00a0the shares.\u00a0If Aegon holds less than 10%, the relationship agreement from which the abovementioned rights derive is automatically terminated.\u00a0
\nLa Banque Postale Asset Management, Paris (France)\u00a0(25%)
See note\u00a021 Investments in joint ventures and associates for further details on these investments.
\nIn the normal course of business, Aegon enters into various transactions with related parties. Parties are considered to be\u00a0related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions. Related parties of Aegon include, among other things, its associates, joint ventures, key management personnel, and the defined benefit and contribution plans. Transactions between related parties have taken place on an arm\u2019s length basis. Transactions between Aegon and its subsidiaries that are deemed related parties have been eliminated in the consolidation and are not disclosed in the notes.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n ||
| \n | \n\n \n Joint ventures | \n \n \n Associates | \n \n \n Joint ventures | \n \n \n Associates | \n
| \n \n Assets | \n \n \n - | \n \n \n 8 | \n \n \n - | \n \n \n 45 | \n
| \n \n Liabilities | \n \n \n - | \n \n \n 110 | \n \n \n - | \n \n \n 90 | \n
| \n \n Income | \n \n \n 47 | \n \n \n 96 | \n \n \n 42 | \n \n \n 49 | \n
| \n \n Expenses | \n \n \n 1 | \n \n \n 73 | \n \n \n 1 | \n \n \n 33 | \n
Liabilities mainly reflect the reimbursement rights of Aegon related to the defined benefit obligation to its employees in the Netherlands, insured with a.s.r. This reimbursement right was established in 2023 following the transaction between Aegon and a.s.r.
Income is attributable to fees from services provided for asset management activities as well as reimbursement for IT, operational and administrative services provided to insurance joint ventures.
Expenses are mainly reflecting transitional charges associated with the transaction between Aegon and a.s.r.
For joint ventures and associates related dividends and capital injections, please refer to note 21 Investments in joint ventures and associates.
\nThe following table includes the expenses for remuneration, with amounts reflective of time spent on the Board.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Non-Executive Directors | \n \n \n 1.8 | \n \n \n 1.3 | \n \n \n 1.3 | \n
| \n \n Executive Director | \n \n \n 5.0 | \n \n \n 0.9 | \n \n \n n.a. | \n
| \n \n Executive Board | \n \n \n - | \n \n \n 4.3 | \n \n \n 5.2 | \n
| \n \n Key Management 1 | \n \n \n 31.9 | \n \n \n 27.9 | \n \n \n 27.7 | \n
| \n \n in fixed compensation | \n \n \n 13.7 | \n \n \n 13.8 | \n \n \n 16.0 | \n
| \n \n in cash based variable compensation | \n \n \n 6.9 | \n \n \n 4.6 | \n \n \n 4.0 | \n
| \n \n in share based variable compensation | \n \n \n 7.4 | \n \n \n 5.0 | \n \n \n 3.5 | \n
| \n \n in pension contributions | \n \n \n 2.6 | \n \n \n 3.1 | \n \n \n 3.0 | \n
| \n \n in other benefits | \n \n \n 1.3 | \n \n \n 1.3 | \n \n \n 1.2 | \n
Fixed compensation of Key Management included severance payments of EUR 2 million in 2024, no such payments were paid in 2022 and 2023. Key Management consisted of all members of the Board and Executive Committee (see the chapter Composition of the Boards for more details).
Additional information on the remuneration of the Executive Director and Non-Executive Directors are disclosed in the Remuneration report.
\nShares held in Aegon on December 31, 2024 by Mr. Friese amount to 160,357 (2023: 83,122; 2022: 72,081). The shares held in Aegon mentioned above do not exceed 1% of total outstanding share capital at the reporting date. At the reporting date, no loans with Aegon or outstanding balances such as guarantees or advanced payments exist for Mr. Friese.
\n| \n \n Shares held in Aegon on December 31 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Dona D. Young | \n \n \n 13,260 | \n \n \n 13,260 | \n
| \n \n Total | \n \n \n 13,260 | \n \n \n 13,260 | \n
Shares held by the Non-Executive Directors are only disclosed for the period for which they have been part of the Board of Directors.\u00a0At the reporting date, no loans with Aegon or outstanding balances such as guarantees or advanced payments exist for the Non-Executive Directors.
\nOther related party transactions include, among others, transactions between Aegon Ltd. and Vereniging Aegon.
On December 16, 2024, Aegon repurchased 36,371,440 common shares B from Vereniging Aegon for the amount of EUR\u00a05,541,443.48 based on 1/40th of the Value Weighted Average Price of the common shares of the five trading days preceding this transaction. The repurchase of common shares B was executed to bring the aggregate holding of voting shares by Vereniging Aegon in Aegon in line with its special cause voting rights of 32.6% following the completion of the share buyback programs, initiated by Aegon in May 2024 and July 2023 following the transaction with a.s.r.
On July 8, 2024, Aegon entered into a share repurchase agreement with Vereniging Aegon, pursuant to which Vereniging\u00a0Aegon agreed to participate in Aegon\u2019s 2024 200 million euro share buyback program for an aggregate consideration of EUR\u00a037\u00a0million euro equally distributed over the total number of trading days during the program whereby the number of shares repurchased has been determined based on the daily volume-weighted average price per common share on Euronext Amsterdam, resulting in Aegon repurchasing 6,407,476\u00a0 from Vereniging Aegon in the 2024 share buyback program that ended on December\u00a013,\u00a02024.
On December 18, 2023, Aegon repurchased 112,619,440 common shares B from Vereniging Aegon for the amount of EUR\u00a014,804,951.58 based on 1/40th of the Value Weighted Average Price of the common shares of the five trading days preceding this transaction. The repurchase of common shares B was executed to bring the aggregate holding of voting shares by Vereniging Aegon in Aegon more in line with its special cause voting rights of 32.6% following the completion of the Share Buy Back Programs, initiated by Aegon in July 2023 following the completion of the transaction with a.s.r.
On December 8, 2023, Aegon entered into a share repurchase agreement with Vereniging Aegon, pursuant to which Vereniging Aegon agreed to participate (pro rata of their ownership) in the second and third tranche of Aegon\u2019s 2023 1.535 billion Euro share buyback program for an aggregate consideration of EUR 139,5 million Euro equally distributed over the total number of trading days during the program whereby the number of shares repurchased has been determined based on the daily volume-weighted average price per common share on Euronext Amsterdam, resulting in Aegon repurchasing 24,842,939 from Vereniging Aegon in the 2023 1.535 billion Euro share buyback program that ended on 28 June 2024.
On August 16, 2023, the members of Vereniging Aegon voted to instruct the board of Vereniging Aegon, subject to the board\u2019s fiduciary duties, to vote all of Vereniging Aegon\u2019s common shares and common shares B (based on one vote per 40 common shares B) at Aegon N.V.\u2019s Extraordinary General meeting of September 29, 2023 and at Aegon S.A.\u2019s extraordinary meeting of September 30, 2023 in favor the change in legal domicile of Aegon from the Netherlands to Bermuda by means of the cross-border conversion of Aegon N.V. into Aegon S.A. and the subsequent cross-border conversion of Aegon S.A. into Aegon Ltd. (the \u201cRedomiciliation\u201d). Following such vote of the members of Vereniging Aegon, the board of Vereniging Aegon is obligated, pursuant to the terms of a voting undertaking agreement, dated June 29, 2023, between Aegon N.V. and Vereniging Aegon, and subject to the board\u2019s fiduciary duties, to vote all of such shares in favor of the Redomiciliation. \u00a0
On December 15, 2022, Aegon repurchased 43,817,400 \u00a0common shares B from Vereniging Aegon for the amount of EUR\u00a05,113,578.21 based on 1/40th of the Value Weight Average Price of the common shares of the five trading days preceding this transaction. The repurchase of common shares B was executed to bring the aggregate holding of voting shares by Vereniging Aegon in Aegon more in line with its special cause voting rights of 32.6% following the completion of the Share Buy Back Programs, initiated by Aegon in April 2022, following the completion of the sale of the Hungarian business and initiated in July and October 2022 to neutralize the dilutive effect of the distribution of the final dividend 2021 and the interim dividend 2022 in stock.
On November 21,\u00a02022, the members of Vereniging Aegon voted to instruct the board of Vereniging Aegon, subject to the\u00a0board\u2019s fiduciary duties, to vote all of Vereniging Aegon\u2019s common shares and common shares B (based on one vote per 40\u00a0common shares B) at Aegon Ltd.\u2019s next Extraordinary General meeting in favor of Aegon divesting its business operations in the Netherlands to A.S.R. Nederland N.V. for cash consideration and almost 30% share interest in A.S.R. Nederland N.V (the\u00a0\u201cTransaction\u201d). Following such vote of the members of Vereniging Aegon, the board of Vereniging Aegon is obligated, pursuant to the terms of a voting undertaking agreement, dated October\u00a027,\u00a02022, between Aegon Ltd. and Vereniging\u00a0Aegon, and subject to the board\u2019s fiduciary duties, to vote all of such shares in favor of the Transaction.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5619m3756p": { "value": "\nThe principal subsidiaries of the parent company Aegon Ltd. are listed by geographical segment. All are wholly owned, directly or indirectly, unless stated otherwise, and are involved in insurance or reinsurance business, pensions, asset management or services related to these activities. The voting power in these subsidiaries held by Aegon is equal to the shareholdings.
\nTransamerica Casualty Insurance Company, Cedar Rapids, Iowa (United States)
Transamerica Corporation, Wilmington, Delaware (United States)
Transamerica Financial Life Insurance Company, Harrison, New York (United States)
Transamerica Life Insurance Company, Cedar Rapids, Iowa (United States)
World Financial Group Insurance Agency, LLC, Cedar Rapids, Iowa (United States)
Aegon Investment Solutions Ltd., Edinburgh
Aegon Investments Ltd., London\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Cofunds Limited, London
Scottish Equitable plc, Edinburgh
Origen Financial Services Limited, Farnborough
Aegon Espa\u00f1a S.A.U. de Seguros y Reaseguros, Madrid (Spain)
Transamerica Life (Bermuda) Ltd., Hamilton (Bermuda)
Aegon Asset Management Holding B.V., The Hague (The Netherlands)
Aegon Asset Management UK plc, Edinburgh (United Kingdom)
Aegon Investment Management B.V., The Hague (The Netherlands)
Aegon USA Investment Management, LLC, Cedar Rapids (United States)
Aegon USA Realty Advisors, LLC, Des Moines (United States)
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 Ltd. has issued a statement of liability as meant in Article 403 of\u00a0Book\u00a02 of the Dutch Civil Code for its subsidiary company Aegon Derivatives N.V.
\nThe principal joint ventures are listed by geographical segment. The voting powers in these joint ventures is equal to\u00a0the\u00a0shareholdings, unless stated otherwise.
\nSantander Generales Seguros y Reaseguros, S.A., Madrid (Spain)\u00a0(51%)
Santander Vida Seguros y Reaseguros, S.A., Madrid (Spain)\u00a0(51%)\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Aegon Santander Portugal N\u00e3o Vida \u2013 Companhia de Seguros S.A., Lisbon (Portugal)\u00a0(51%)
Aegon Santander Portugal Vida \u2013 Companhia de Seguros de Vida S.A., Lisbon (Portugal)\u00a0(51%)
Aegon THTF Life Insurance Co., Ltd., Shanghai (China) (50%)
Mongeral Aegon, Seguros e Previdencia S.A., Rio de Janeiro (Brazil)\u00a0(59.2%, where Aegon has 50% voting rights)\u200b\u200b\u200b\u200b
Sicoob Seguradode de Vida e Previd\u00eancia S.A., Rio de Janeiro (Brazil) (29.6%)
Aegon Industrial Fund Management Co., Ltd., Shanghai (China)\u00a0(49%)
See note 21 Investments in joint ventures and associates for further details on these investments.
\nThe principal investments in associates are listed by geographical segment.\u00a0The voting powers in these associates is equal to the shareholdings, unless stated otherwise.
\nASR Nederland N.V., Utrecht (29.95%)
Pursuant to the relationship agreement entered into with a.s.r. for a period of five years post closing (July 1, 2023), Aegon has an exclusive right to nominate up to two members of the Supervisory Board (if Aegon holds more than 20% of the shares it may nominate two members of which one qualifies as Independent Nominee and the other as Non-independent Nominee; if it holds 20% or less but more than 10% of the shares it may nominate one member who qualifies as Non-independent Nominee). In addition, Aegon has the\u00a0right to designate its nominees for the Audit and Risk Committee and the ESG Committee if certain conditions are met. Furthermore, in the event that the incumbent CEO of a.s.r. does not serve the full term due to earlier resignation or dismissal, the\u00a0appointment of the successor requires the unanimous vote of all Supervisory Directors in office.
For as long as Aegon holds more than 20% of the shares, the affirmative vote of the non-independent Aegon nominee is\u00a0required for:
significant changes to dividend policy (as per current stated a.s.r. policies);
certain dilutive transactions (issuance of equity or debt instruments); and
M&A transactions (acquisitions and divestments, joint ventures, and long-term co-operations) with a value exceeding
EUR\u00a0500\u00a0million.
Furthermore, for as long as Aegon holds more than 20% of the shares, the below needs the unanimous vote of all Supervisory Directors in office and the affirmative vote of the non-independent Aegon nominee:
material decisions on capital management, material reinsurance, and capital allocation / distribution, in each case to the extent this would result in a material change to the characteristics of the risk profile of (the enterprise of) a.s.r. and other than in the ordinary course of business.
Except for significant changes to the dividend policy, the same applies when Aegon holds 20% or less but more than 10% of\u00a0the shares.\u00a0If Aegon holds less than 10%, the relationship agreement from which the abovementioned rights derive is automatically terminated.\u00a0
\nLa Banque Postale Asset Management, Paris (France)\u00a0(25%)
See note\u00a021 Investments in joint ventures and associates for further details on these investments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCompositionOfGroupExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5621m1266p": { "value": "\nThe principal subsidiaries of the parent company Aegon Ltd. are listed by geographical segment. All are wholly owned, directly or indirectly, unless stated otherwise, and are involved in insurance or reinsurance business, pensions, asset management or services related to these activities. The voting power in these subsidiaries held by Aegon is equal to the shareholdings.
\nTransamerica Casualty Insurance Company, Cedar Rapids, Iowa (United States)
Transamerica Corporation, Wilmington, Delaware (United States)
Transamerica Financial Life Insurance Company, Harrison, New York (United States)
Transamerica Life Insurance Company, Cedar Rapids, Iowa (United States)
World Financial Group Insurance Agency, LLC, Cedar Rapids, Iowa (United States)
Aegon Investment Solutions Ltd., Edinburgh
Aegon Investments Ltd., London\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Cofunds Limited, London
Scottish Equitable plc, Edinburgh
Origen Financial Services Limited, Farnborough
Aegon Espa\u00f1a S.A.U. de Seguros y Reaseguros, Madrid (Spain)
Transamerica Life (Bermuda) Ltd., Hamilton (Bermuda)
Aegon Asset Management Holding B.V., The Hague (The Netherlands)
Aegon Asset Management UK plc, Edinburgh (United Kingdom)
Aegon Investment Management B.V., The Hague (The Netherlands)
Aegon USA Investment Management, LLC, Cedar Rapids (United States)
Aegon USA Realty Advisors, LLC, Des Moines (United States)
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 Ltd. has issued a statement of liability as meant in Article 403 of\u00a0Book\u00a02 of the Dutch Civil Code for its subsidiary company Aegon Derivatives N.V.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f5680m3775p": { "value": "\nThe following table includes the expenses for remuneration, with amounts reflective of time spent on the Board.
\n| \n | \n\n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n
| \n \n Non-Executive Directors | \n \n \n 1.8 | \n \n \n 1.3 | \n \n \n 1.3 | \n
| \n \n Executive Director | \n \n \n 5.0 | \n \n \n 0.9 | \n \n \n n.a. | \n
| \n \n Executive Board | \n \n \n - | \n \n \n 4.3 | \n \n \n 5.2 | \n
| \n \n Key Management 1 | \n \n \n 31.9 | \n \n \n 27.9 | \n \n \n 27.7 | \n
| \n \n in fixed compensation | \n \n \n 13.7 | \n \n \n 13.8 | \n \n \n 16.0 | \n
| \n \n in cash based variable compensation | \n \n \n 6.9 | \n \n \n 4.6 | \n \n \n 4.0 | \n
| \n \n in share based variable compensation | \n \n \n 7.4 | \n \n \n 5.0 | \n \n \n 3.5 | \n
| \n \n in pension contributions | \n \n \n 2.6 | \n \n \n 3.1 | \n \n \n 3.0 | \n
| \n \n in other benefits | \n \n \n 1.3 | \n \n \n 1.3 | \n \n \n 1.2 | \n
Fixed compensation of Key Management included severance payments of EUR 2 million in 2024, no such payments were paid in 2022 and 2023. Key Management consisted of all members of the Board and Executive Committee (see the chapter Composition of the Boards for more details).
Additional information on the remuneration of the Executive Director and Non-Executive Directors are disclosed in the Remuneration report.
\nShares held in Aegon on December 31, 2024 by Mr. Friese amount to 160,357 (2023: 83,122; 2022: 72,081). The shares held in Aegon mentioned above do not exceed 1% of total outstanding share capital at the reporting date. At the reporting date, no loans with Aegon or outstanding balances such as guarantees or advanced payments exist for Mr. Friese.
\n| \n \n Shares held in Aegon on December 31 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Dona D. Young | \n \n \n 13,260 | \n \n \n 13,260 | \n
| \n \n Total | \n \n \n 13,260 | \n \n \n 13,260 | \n
Shares held by the Non-Executive Directors are only disclosed for the period for which they have been part of the Board of Directors.\u00a0At the reporting date, no loans with Aegon or outstanding balances such as guarantees or advanced payments exist for the Non-Executive Directors.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1071m1049p": { "value": "\nOn January 13, 2025 Aegon started a new share buyback program of EUR 150 million which is expected to be completed by June 30, 2025. The new EUR 150 million share buyback program will include an amount of about EUR 40 million to meet Aegon\u2019s obligations resulting from the share-based compensation plans for senior management. Aegon intends to cancel the remainder of the repurchased shares resulting from the new planned share buyback program, subject to any relevant approval.
On January 13, 2025 Aegon has entered into an agreement with its largest shareholder, Vereniging Aegon, to participate in the new EUR 150 million share buyback program. Vereniging Aegon will participate pro-rata in the share buyback program based on its combined common shares and common shares B which represent about 18.4% of the total shareholders\u2019 voting rights that are currently exercisable. This results in a buyback amount of EUR 20 million. The number of common shares that Aegon will repurchase from Vereniging Aegon will be determined based on the daily volume-weighted average price per common share on Euronext Amsterdam.
\nLard Friese
William L. Connelly
Albert Benchimol
Mark A. Ellman
Karen Fawcett
Jack McGarry
Caroline Ramsay
Thomas Wellauer
Corien M. Wortmann
Dona D. Young