The cash flow statement is prepared according to the indirect method.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21413m13893p": { "value": "\nAegon 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 Dutch Commercial Register under number 27076669. Aegon Ltd. has its registered address at Canon\u2019s Court, 22 Victoria Street, Hamilton HM 12, Bermuda. The\u00a0Bermuda Monetary Authority is Aegon's group supervisor.\u200b\u200b\u200b\u200b\u200b\u200b\u200b
Aegon Ltd. has its headquarters in the Netherlands at World Trade Center Schiphol, Schiphol Boulevard 223, 1118 BH Schiphol. At year-end 2025, Aegon Ltd. qualified 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.\u00a0serves as the holding company for the Aegon Group. Aegon's common shares are listed on Euronext Amsterdam under the symbol 'AGN', which is the principal market, and on the New York Stock Exchange (NYSE) under the symbol 'AEG'. Aegon's common shares B are not listed to trade on any securities market.\u00a0On Euronext Amsterdam, only Euronext registered shares may be traded. On NYSE, only New York Registry Shares may be traded.
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 Spain, as well as operating the fully owned asset management and Transamerica Life (Bermuda) businesses. Aegon\u00a0also\u00a0operates partnerships in Spain & Portugal, China, and Brazil, and a strategic shareholding in the Netherlands. The\u00a0Group\u00a0employs around 15,300 people worldwide (2024: around 15,600).
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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21452m13906p": { "value": "Aegon Ltd. is an exempted company with liability limited by shares", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22242m14186p": { "value": "Canon\u2019s Court, 22 Victoria Street, Hamilton HM 12, Bermuda", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21455m13909p": { "value": "Bermuda", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22914m14508p": { "value": "Bermuda", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23199m13892p": { "value": "Aegon Ltd.", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23201m14214p": { "value": "World Trade Center Schiphol, Schiphol Boulevard 223, 1118 BH Schiphol", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21453m13907p": { "value": "Aegon Ltd.", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24579m14833p": { "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 Spain, as well as operating the fully owned asset management and Transamerica Life (Bermuda) businesses. Aegon\u00a0also\u00a0operates partnerships in Spain & Portugal, China, and Brazil, and a strategic shareholding in the Netherlands. The\u00a0Group\u00a0employs around 15,300 people worldwide (2024: around 15,600).
", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21454m13908p": { "value": "Aegon Ltd.", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24651m14213p": { "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 under the Group\u2019s accounting policies, 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 be an indicator that an\u00a0impairment exists in the consolidated financial statements. Non-controlling interests are initially stated at their share in the\u00a0fair 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 are consolidated 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\u00a0Group 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 the investment mandate;
Legal rights of the policyholder to the separate assets in the investment vehicle (e.g. policyholders could have the\u00a0voting rights related to these investments);
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. substantive voting rights of policyholders).
Exposure or rights to variability of returns may arise from, for example, investments where Aegon bears the risk; Aegon's investments where policyholders bear the risk; guarantees provided by Aegon on the return of policyholders in specific investment vehicles; fees dependent on fund value (e.g. asset management fees); and fees dependent on performance of\u00a0the\u00a0fund (e.g. performance fees).
Investment funds where Aegon acts as an agent are not consolidated due to lack of control. In particular, for\u00a0some separate accounts, the independent Board of Directors has substantive rights, meaning 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 as investment contracts. Where no repurchase obligation exists, the participations held by third parties are presented as non-controlling interests in\u00a0equity. Assets allocated to participations held by third parties or by the Group on behalf of policyholders are presented as investments.
Equity instruments issued by the Group that are held by investment funds are eliminated on consolidation. This\u00a0elimination is\u00a0reflected in equity and not in the measurement of related financial liabilities toward policyholders or\u00a0other third parties.
\nFor structured entities as defined in IFRS 12, the control assessment per IFRS 10 focuses on the purpose and design of\u00a0the\u00a0investee (with relation to the relevant activities that most significantly affect the structured entity) and the exposure to\u00a0variable returns, which for structured entities lies in interests through, for example derivatives, and will not be focused on\u00a0entities that are controlled by voting rights.
Consolidated structured entities include affiliated captive insurance companies (captives) with which Aegon enters into reinsurance agreements for risk and capital management. 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 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. Assets\u00a0and liabilities are translated at closing rates on the reporting date. Income, expenses, and capital transactions (such\u00a0as\u00a0dividends) are translated at average exchange rates or at the prevailing rates on the transaction date, if more appropriate. Goodwill and fair value adjustments from the acquisition of a foreign entity are translated at the closing rates on\u00a0the reporting date.
Resulting exchange differences are recognized in the \"foreign currency translation reserve,\" within shareholders\u2019 equity. On\u00a0disposal of a foreign entity, 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 policyholder on the occurrence of an uncertain future event by which the\u00a0policyholder\u00a0will be adversely affected. Significant insurance risk is\u00a0determined on a present-value basis, where at least one scenario with commercial substance can be identified where the\u00a0Group pays significant additional benefits. For example, Aegon defines an additional benefit on death of at least 5% as significant. Additional benefits of less than 5% are considered on\u00a0a\u00a0case-by-case basis, taking into account all the\u00a0characteristics of the contract. Insurance contracts include products offering policyholders the option to take out insurance coverage at predetermined prices, provided this option has commercial substance.
Contracts that do not meet the definition of insurance contracts are treated as financial instruments and discussed in note\u00a02.8\u00a0Investment contracts with discretionary participation 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:
\nDo 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.
\nAegon classifies contracts into 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. Lapse risk or expense risk are not risks that a policyholder transfers to an insurer. Contracts in the same product line are in the same portfolio if they are managed together, and contracts in different product lines with dissimilar risks are in different portfolios.
Contracts must be managed together from the perspective of either the management of Aegon Ltd. or the management of its\u00a0operating segments. Information that is used to assess how risks are managed includes Aegon\u2019s internal management reporting, asset-liability management and asset allocation strategies.
\nContracts within a portfolio are segregated into groups based on their profitability at initial recognition. These include groups of insurance contracts that are onerous at initial recognition, and groups that are not onerous at initial recognition. The latter are further split into contracts with no significant possibility of becoming onerous in the future, and any remaining contracts in\u00a0the portfolio, if applicable.
Aegon uses two approaches to identify groups of contracts. The first approach is a bottom-up assessment, where contracts are grouped together on a contract-by-contract basis by considering the expected profitability of each contract. Alternatively, Aegon completes the grouping assessment at a higher level of aggregation if reasonable and supportable information shows that a set of contracts will, by definition, all be in the same group.
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 are measured together. After the quarter end, the cohort is closed and treated as \"in force\" in 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. They include incremental costs of originating insurance contracts, other (in)direct costs, and 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, motor, general liability, and disability and sickness insurance.
For measurement and income recognition purposes, Aegon classifies insurance contracts at initial recognition as with or without direct participation features, which are not subsequently reassessed. Aegon\u2019s\u00a0non-life business consists entirely of\u00a0insurance contracts without direct participation 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 participation 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 participation 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\u00a0Aegon\u00a0expects a substantial proportion of any change in the amounts to be paid to the policyholder to\u00a0vary 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 participation 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 is established, a two-step classification methodology is\u00a0carried out. An initial assessment based on product characteristics, followed by a quantitative assessment if the first step is\u00a0inconclusive:
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, 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.
\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 an investment management component, with only the latter deducted from total returns. As a critical judgment, when\u00a0the policyholder's share of fair value returns is between 50% and 70%, Aegon applies judgement based on qualitative and quantitative factors in product classification.
Assessing the variability in policyholder benefits often requires probability-weighted models, factoring\u00a0all scenarios where returns are impacted by the allocation of clearly identifiable assets, variable fees and guarantees. A single scenario with no variability does not automatically disqualify a product for\u00a0the\u00a0variable fee approach but is considered alongside scenarios in which the guarantee is not in-the-money at\u00a0the\u00a0expected termination date of the contract.
Examples of insurance contracts with direct participation features include unit-linked contracts issued by Aegon UK and Aegon Spain, and variable annuities issued in the Americas.
\nAlthough insurance contracts without direct participation features are not linked to underlying assets, there are products where Aegon provides investment-return services. A product is considered to provide an investment-return service if, and\u00a0only\u00a0if,\u00a0the 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\u00a0Aegon 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\u00a0registered index linked annuities.
Insurance contracts without direct participation features include all non-life insurance products issued by Aegon, as well as term insurance, whole life, fixed annuities,\u00a0registered indexed linked 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\").
\nThe fulfillment cash flows reflect Aegon\u2019s view of the current condition at the reporting date, consistent with observable market prices and all contractual terms and conditions with commercial substance within the contract boundary. Future\u00a0changes 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 that are partially linked to performance of underlying assets based on crediting policy, for instance for US universal life-type products. This provides the Group with discretion as to the timing and\u00a0amount of the cash flows to be paid to policyholders. Change in discretionary cash flows is regarded as relating to future services and adjusts the Contractual Service Margin. At inception of such contract, the Group specifies its commitment as crediting interest to policyholders\u2019 account balance based on Aegon\u2019s crediting policy, considering specific terms and conditions of the contracts. Where changes reflect management discretion, such as changes in crediting rates, they are treated as adjustments to the contractual service margin. Conversely, changes driven by financial risk assumptions (e.g., market interest rate shifts) are recognized in insurance finance income or expenses.
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 an immediate loss recognized in the income statement, with a corresponding loss component 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 compel the policyholder to pay premiums or has a substantive obligation to provide insurance contract services to the policyholder.
Examples of such cash flows 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\u00a0interprets 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, Aegon considers all insurance and financial risks that are transferred from\u00a0the policyholder excluding risks that result from the contract itself, such as expense risk or lapse risk. If Aegon provides investment-related services to insurance policyholders, the ability to reprice the fees or charges 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 to existing and new policyholders do\u00a0not extend the contract boundary, because they do not result in a valuable policyholder renewal option.
Some contracts with long contract boundaries 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. While the policyholder option can be repriced, Aegon cannot reprice or reassess the benefits of the entire policy. Therefore, the option is considered within the long contract boundary of the host contract, provided it can reasonably be expected to be utilized.
Contract boundaries are based on current facts and circumstances and may therefore change over time.
\nAt each reporting date, the carrying amount of a group of insurance contracts is the sum of the liability for remaining coverage and the liability for incurred claims. The liability for remaining coverage includes fulfillment cash flows related to future service allocated to that group and the contractual service margin of the group. The liability for incurred claims includes 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.
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 participation features as 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 participation 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 using 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.
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 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 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\u00a0expected to be provided in the future.
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. The coverage period relates to insurance coverage only for business under the General Model when contracts lack investment-return service, and to both insurance coverage and investment return service when contracts contain investment-return service. Coverage period considers 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 provides 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.
More information on the coverage units is provided in note 29.3.2.1 Weighting of coverage units.
\nAegon adjusts fulfillment cash flows for direct participation contracts to reflect 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 relate to future service and are adjusted according to the contractual service margin. Under the variable fee approach, changes in fulfillment cash flows are 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\u00a0underlying items. Examples include the interest accrued to projected fixed benefits and expense cash flows, and changes in\u00a0the value of financial guarantees.
\nThe policy on the recognition of revenue for insurance contracts with direct participation 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 participation 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 participation 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 insurance finance expense in the income statement or\u00a0in other comprehensive income.
Prior to the reporting period, Aegon demonstrates an economic offset between the above mentioned fulfillment cash flows from insurance contracts and the risk-mitigating items (that is 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.
\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 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 participation 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 assessed that reinsurance contracts held do not include components that need to be separated.
\nReinsurance contracts are grouped for measurement and income recognition purposes based on the similarity of risk, how\u00a0the contracts are managed, the expected profitability of the contracts at inception, and the period in which the\u00a0contracts are issued.
When grouping reinsurance contracts, Aegon considers the type of reinsurance coverage received (e.g. yearly renewable term, stop loss, or coinsurance).
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 participation features to\u00a0measure a group of reinsurance contracts held, albeit with the following modifications:
\nAegon estimates the present value of future cash flows of the group of reinsurance contracts held using assumptions 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 the counterparty exposure is collateralized, treaty provisions for non-performance, and special features of the regulatory environment.
\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 occuring 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 and is not netted with finance expenses related to insurance contracts issued.
\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 offset 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 participation 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 participation features, it includes the variable fees that Aegon expects to receive. Reinstatement premiums are included, when reinstatement is 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.
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:
Release of contractual service margin for services provided in the period;
Changes in risk adjustments for non-financial risk that do not relate to future service, excluding amounts allocated to\u00a0the\u00a0loss component;
Claims and other insurance service expenses expected to be incurred in the period, excluding amounts allocated to\u00a0the\u00a0loss\u00a0component;
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.
Insurance revenue recognized in the period also 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 participation 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 and reversals on assets for insurance acquisition cash flows.
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 a group of insurance contracts that are caused by changes in the value of underlying items (excluding additions and withdrawals).
\nFinancial risk identified by\u00a0Aegon can be one or more of credit risk; fluctuations in equity, real estate and capital markets; interest rate; and 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 participation 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 to disaggregate the risk adjustment for financial risks into an insurance service component and an insurance finance component, based on the extent to which the carrying amount of the group of insurance contracts or reinsurance contracts 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.
\nAegon disaggregates insurance finance expenses between profit or loss and other comprehensive income for insurance contracts without direct participation 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;
A rate that allocates the remaining revised expected finance income or expenses over the remaining duration at a constant rate (effective yield approach); or
For contracts using a crediting rate to determine amounts due to the policyholders using an allocation that is based on the\u00a0amounts credited in the period and expected to be credited in future periods (projected crediting rate approach).
The effective 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, registered index linked annuities and fixed indexed annuities. Other indirect participating contracts, such as fixed annuities, are accounted for\u00a0under the effective 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 actual switching results 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 purchases or sales are 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.
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:
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 Group management is compensated, i.e. whether the compensation is based on the fair value of the assets managed or\u00a0on the contractual cash flows collected;
The expected frequency, value and timing of sales.
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 or 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 that 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\u00a0collect contractual cash flows which 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:
Fair value hedges of recognized assets or liabilities or firm commitments;
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 are 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\u00a0FVPL, 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\u00a0described in note 4.2.6 Expected credit losses, which results in an accounting loss being recognized in profit or loss when an\u00a0asset 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.
\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\u00a0income from instruments measured at FVPL.\"
\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 may renegotiate or otherwise modify the contractual cash flows of financial assets. When this happens, Aegon assesses whether the new terms are substantially different to the original terms by considering, among other things, the\u00a0following 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.
Introduction of any substantial new terms, such as 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\u00a0fair\u00a0value and recalculates a new effective interest rate for the asset. The renegotiation date becomes the date of initial recognition for impairment calculation purposes, including to determine 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\u00a0another 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 which are compound instruments due to the nature of these financial instruments. 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 investment risk comprise unit-linked investment contracts, which are designated FVPL as they are contractually linked to a pool of financial assets measured at fair value. Risks related to these liabilities are managed and evaluated on a fair value basis under a documented policy of asset and liability management.
As these contracts are not quoted in active markets, their value is determined using valuation techniques such as discounted cash flow 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\u00a0that can be settled net in cash or by delivering or issuing another financial instrument.
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 earned 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 if the investments outperform 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 intangible assets for costs directly incurred in fulfilling insurance contracts, which include both direct costs and an allocation of fixed and variable overhead costs.
\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, including the cost of replacing part of the real estate and borrowing cost if recognition criteria are met. Subsequently, investments in real estate are measured\u00a0at fair value with fair value changes recognized in\u00a0the\u00a0income statement. Real estate held for own use is carried at its revalued amount, which is the fair value at\u00a0the date of revaluation less subsequent accumulated depreciation and impairment\u00a0losses. Depreciation is calculated on\u00a0a\u00a0straight-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 to account for a step acquisition of a joint venture or associate, treating the fair value of previously held interest at the date that joint control or significant influence is obtained as the\u00a0cost for the initial recognition of\u00a0equity 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 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 equity-accounted associates when there is objective evidence of decreased\u00a0recoverability of the carrying amount. For example, 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 defined a fair value being continuously below the carrying amount for a period of six months as prolonged.
Interests held by venture capital entities, mutual funds, and investment funds that qualify as an associate are accounted for as\u00a0an 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 expenses comprise deferred transaction costs. Deferred 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 contracts are\u00a0recognized 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. Amortization is recognized in the income statement. Deferred\u00a0transaction costs are subject to impairment testing at least annually and 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\u00a0held 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 indications suggest the asset may be impaired. Goodwill and intangible assets with an undefined life are tested at least once a year, or more frequently if\u00a0an event or change in circumstances 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 issued by the Group are classified as equity if they represent a residual interest in the Group's assets 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 with no final maturity date, repayment is at Aegon's discretion. For junior perpetual capital securities, Aegon has the option to defer coupon payments at its discretion. Perpetual capital securities are classified as\u00a0equity and measured at par, and those denominated in US dollars are translated into euros using historical exchange rates. Treasury shares are deducted from Group equity.
Non-cumulative subordinated notes were identified as a compound instrument. Aegon had an unconditional right to avoid delivering cash or another financial asset to settle the coupon payments. The redemption of the principal was not at the discretion of Aegon. 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 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\u00a0this 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 euros 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 directly attributable to the\u00a0issuing or buying back of the compound instruments are 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 participation 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.
\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. Non-service-related benefits are recognized when the event that results in the 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. 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 restricted 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\u00a0reimbursements by associated third parties of some or all of the expenditure required to settle a defined benefit obligation, a\u00a0reimbursement 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 comprises the current year service cost and net interest on the net defined benefit liability (asset), both of which are recognized in profit or loss.
Remeasurements of the net defined benefit liability (asset, recognized in other comprehensive income), are revisited quarterly and are not 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\u00a0number\u00a0of shares that will vest may partly depend on Aegon\u2019s relative total shareholder return compared with a peer group or on 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, if the employee is not entitled to receive dividends during the\u00a0vesting 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, such as return on\u00a0regulatory 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 an update in the number of instruments expected to vest, therefore a remeasurement of cumulative expenses.
Costs for long-term incentive plans are recognized in the income statement with a corresponding increase in\u00a0shareholders\u2019 equity, as services are rendered. Cumulative expense recognized at the reporting date reflects Aegon\u2019s best estimate of\u00a0the\u00a0number of shares expected to vest ultimately.
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 for the year comprises current and deferred tax. Current tax is calculated using rates that have been enacted or substantively enacted by the\u00a0reporting date, considering non-taxable or disallowed items and any adjustments to tax payable relating to previous years.
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.
Deferred tax assets and liabilities are recognized, using the liability method, for temporary differences between the\u00a0carrying and tax values 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 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 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.
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 or loss, other comprehensive income or directly in equity.
\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 and 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 with a lease term of 12 months or less and for 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 leased assets 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.
\nExcept for expenses made to acquire insurance contracts and investment contracts with discretionary participation features, all expenses are incurred as 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.
\nFair value is defined as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. 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
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 the\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 valuation techniques for which any significant input is not based on observable market data.
The degree of judgment in measuring fair value inversely correlates with the level of observable valuation inputs. Aegon prioritizes observable inputs and minimizes unobservable ones. Financial instruments with quoted prices in active markets require less judgment, while those without quoted prices need more judgment and use models or pricing techniques.
Assets and liabilities are categorized within the fair value hierarchy based on the lowest significant input. An active market provides ongoing pricing information, while inactive markets require assurance that transaction prices reflect fair value or\u00a0that\u00a0they require adjustments to reflect fair value.
Most valuation techniques use observable market data, ensuring high reliability. However, some assets and liabilities rely on\u00a0unobservable inputs, making their fair value more judgmental. Instruments classified as level III are significantly influenced by\u00a0unobservable inputs, meaning little current market data is available. Aegon\u2019s valuation techniques align with market participants' approaches, but different methodologies could yield different fair value estimates.
Aegon assigns fair value levels to instruments based on type and price source, periodically reviewing this logic to adapt to\u00a0the\u00a0current market environment.
For further details on fair value hierarchy and fair value measurement, refer to note 38 Fair value.
\nAegon\u2019s segment information is prepared by consolidating on a proportionate basis Aegon\u2019s joint ventures (JVs) and\u00a0associated companies except for its approximate 24% stake in a.s.r. The result of associate a.s.r. is included in Other\u00a0income / (charges).
\nThe Group has applied the option from IAS 32 to recognize some of the Group\u2019s ordinary shares held as underlying assets of direct participation 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).
\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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23945m13911p": { "value": "\nThe consolidated financial statements are presented in euros, and are rounded to the nearest million unless otherwise stated. As a consequence the rounded amounts may not add up to the rounded total. All ratios and variances are calculated using the unrounded amount. Management is required under IFRS 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\u00a0reporting period. 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 under IFRS to group together specific insurance contracts issued more than 12\u00a0months 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 participation features (please see note 29 (Re)Insurance contracts and Investment contracts with discretionary participation features (29 Insurance contracts)\u00a0), and the measurement of the expected credit loss allowance (please see note 4 Financial risks).
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, such as the conflicts between Ukraine and Russia and between Israel and Hamas, which continued in 2025; and the increased trade frictions that can lead to persistent volatility in energy and commodity prices, supply chain disruptions and shifting global trade patterns. In addition to causing a humanitarian crisis, these events impacted global financial markets and triggered 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.\u00a0The conflict in Iran, which escalated in February 2026, is expected to exert upward pressure on global inflation, primarily through elevated energy prices and broader supply\u2011chain disruptions, which may increase transportation, production, and consumer costs worldwide.
\nThe consolidated financial statements have been prepared on a going concern basis, on the assumption that the Company will continue in operation for the foreseeable future. From\u00a0December 31, 2025, management assessed the following main areas: financial performance; capital adequacy; financial position and flexibility; liquidity; ability to\u00a0access capital markets; leverage ratios and the level of Cash Capital at Holding, and concluded that the going concern assumption for Aegon is appropriate. For\u00a0further details, see note 37 Capital management and solvency.
\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, 2025, 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 (for example, the likelihood of customers defaulting and the resulting losses). Explanation of the inputs, assumptions, judgements and estimation techniques used in measuring ECL and information incorporating forward-looking information into the measurement of the ECL is further detailed in note 4.2 Credit risk.
\nThe classification of financial assets is based on Aegon\u2019s business model for managing them and their contractual cash flow characteristics. Aegon determines the classification of the financial assets by assessing the business model and whether the\u00a0contractual terms of the assets are solely payments of principal and interest (SPPI) on the principal amount outstanding. The\u00a0classification of financial assets determines how they are accounted for and measured on an ongoing basis.
\nFair value is defined as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. 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
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 the\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 valuation techniques for which any significant input is not based on observable market data.
The degree of judgment in measuring fair value inversely correlates with the level of observable valuation inputs. Aegon prioritizes observable inputs and minimizes unobservable ones. Financial instruments with quoted prices in active markets require less judgment, while those without quoted prices need more judgment and use models or pricing techniques.
Assets and liabilities are categorized within the fair value hierarchy based on the lowest significant input. An active market provides ongoing pricing information, while inactive markets require assurance that transaction prices reflect fair value or\u00a0that\u00a0they require adjustments to reflect fair value.
Most valuation techniques use observable market data, ensuring high reliability. However, some assets and liabilities rely on\u00a0unobservable inputs, making their fair value more judgmental. Instruments classified as level III are significantly influenced by\u00a0unobservable inputs, meaning little current market data is available. Aegon\u2019s valuation techniques align with market participants' approaches, but different methodologies could yield different fair value estimates.
Aegon assigns fair value levels to instruments based on type and price source, periodically reviewing this logic to adapt to\u00a0the\u00a0current market environment.
For further details on fair value hierarchy and fair value measurement, refer to note 38 Fair value.
\nAegon uses the \"three-stage\" model for impairment as outlined in IFRS 9, based on relative changes in credit quality since initial recognition. The table below shows the characteristics of the three stages.
| \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 the staging of financial instruments, Aegon incorporates multiple, forward looking macro- scenarios to drive the\u00a0ECL\u00a0provision. Forward-looking inputs used to measure ECLs must align with those used to assess significant increases in\u00a0credit\u00a0risk.
The Group uses different models to calculate ECL across asset classes. The following sections outline the Group\u2019s key judgments and assumptions for each model.
For bonds and private placements, the Group uses a global correlation model that links credit quality movements across asset classes to macroeconomic trends. This model determines conditional PD and LGD under specific macroeconomic scenarios. Unconditional PD and LGD curves are developed using distinct methods for sovereign debt, corporate bonds, and\u00a0private placements.
For commercial mortgage loans and mortgage-backed securities, parameters are estimated using commercial mortgage metrics. These build on corporate bond PD and LGD estimates, adjusted for factors like debt service coverage and loan-to-value ratios.
Asset-backed securities are modeled separately, with instruments pooled by collateral type, and credit-loss parameters estimated collectively. For collateralized debt (loan) obligations (CDOs and CLOs), different models are applied depending on\u00a0the region of the exposure.
The following tables contain an analysis of Aegon\u2019s credit risk exposure for debt instruments and loans for which an ECL allowance is\u00a0recognized.\u00a0All asset categories not presented here are\u00a0determined to have non-material credit risk or to be of\u00a0a\u00a0short-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 Financial assets | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n 3,843 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,843 | \n \n \n 3,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,295 | \n
| \n \n AA | \n \n \n 7,787 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 7,788 | \n \n \n 9,100 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 9,101 | \n
| \n \n A | \n \n \n 18,394 | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 18,403 | \n \n \n 19,443 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19,443 | \n
| \n \n BBB | \n \n \n 18,050 | \n \n \n 84 | \n \n \n - | \n \n \n 1 | \n \n \n 18,135 | \n \n \n 20,724 | \n \n \n 7 | \n \n \n - | \n \n \n 1 | \n \n \n 20,732 | \n
| \n \n BB | \n \n \n 810 | \n \n \n 124 | \n \n \n - | \n \n \n - | \n \n \n 934 | \n \n \n 949 | \n \n \n 157 | \n \n \n - | \n \n \n - | \n \n \n 1,106 | \n
| \n \n B | \n \n \n 150 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 245 | \n \n \n 361 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 456 | \n
| \n \n CCC and lower | \n \n \n 48 | \n \n \n 55 | \n \n \n 221 | \n \n \n 74 | \n \n \n 398 | \n \n \n 85 | \n \n \n 79 | \n \n \n 289 | \n \n \n 91 | \n \n \n 544 | \n
| \n \n Net carrying amount | \n \n \n 49,082 | \n \n \n 358 | \n \n \n 232 | \n \n \n 75 | \n \n \n 49,747 | \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 Expected credit loss | \n \n \n \n \n (189) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \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 Loans at | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n Internal grade 1 | \n \n \n 847 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 847 | \n \n \n 977 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 1,013 | \n
| \n \n Internal grade 2 | \n \n \n 4,023 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,023 | \n \n \n 4,410 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n
| \n \n Internal grade 3 | \n \n \n 4,304 | \n \n \n 15 | \n \n \n - | \n \n \n - | \n \n \n 4,319 | \n \n \n 4,539 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 4,546 | \n
| \n \n Internal grade 4 | \n \n \n 413 | \n \n \n 7 | \n \n \n 3 | \n \n \n - | \n \n \n 423 | \n \n \n 644 | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 654 | \n
| \n \n Internal grade 5 | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n 4 | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 81 | \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 9,587 | \n \n \n 115 | \n \n \n 3 | \n \n \n - | \n \n \n 9,705 | \n \n \n 10,573 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n
| \n \n Expected credit loss | \n \n \n \n \n (11) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (33) \n | \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 | \n \n \n 9,575 | \n \n \n 94 | \n \n \n 2 | \n \n \n - | \n \n \n 9,672 | \n \n \n 10,535 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n
Aegon uses a\u00a0set\u00a0of\u00a0variables describing the state of the macroeconomy as input to the calculation of the probability of default and prepayment.
Subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the\u00a0Group 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.
The lifetime PD for a financial instrument is calculated by summing the probabilities of all future developments that end up in the ECL. All possible future developments are enumerated, and a probability is estimated for each using statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of SICR and the calculation of ECL both incorporate forward-looking information.
The impact of economic variables on ECL and lifetime PD varies by financial instrument, with expert judgment applied throughout the process. Forecasts for these variables (the \u201cbase economic scenario\u201d) reflect Aegon\u2019s best estimate for\u00a0the\u00a0next five years. Beyond that, a mean reversion approach is used, assuming variables return to long-term averages (for\u00a0example,\u00a0unemployment rates or GDP growth) over three years. A statistical regression analysis has been performed to assess how historical changes in macroeconomic variables have influenced default and prepayment rates.
Starting from the base scenario, three macroeconomic scenarios \u2014 positive, neutral, and negative \u2014 are generated by applying shocks to macroeconomic variables, reflecting their historical correlations. These shocks correspond to the average deviation from the long-term mean observed in the best/worst 10% of historical quarters. ECL is calculated for each scenario, weighted accordingly, and then summed up. This multi-scenario approach ensures the ECL reflects a balanced estimate, not just the most likely scenario. 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 on December 31, 2025 | \n \n | \n\n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n 2029 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.29 | \n \n \n 4.32 | \n \n \n 4.33 | \n \n \n 4.30 | \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 4.39 | \n \n \n 4.41 | \n \n \n 4.33 | \n \n \n 4.30 | \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 3.05 | \n \n \n 3.76 | \n \n \n 4.02 | \n \n \n 4.16 | \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 4.78 | \n \n \n 4.59 | \n \n \n 4.29 | \n \n \n 4.05 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.83 | \n \n \n 3.94 | \n \n \n 3.66 | \n \n \n 3.47 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.34 | \n \n \n 7.60 | \n \n \n 6.16 | \n \n \n 4.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 429.08 | \n \n \n 438.87 | \n \n \n 455.20 | \n \n \n 471.22 | \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 450.23 | \n \n \n 472.07 | \n \n \n 494.28 | \n \n \n 513.52 | \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 362.72 | \n \n \n 383.66 | \n \n \n 404.10 | \n \n \n 420.99 | \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 24,484.94 | \n \n \n 24,932.78 | \n \n \n 25,485.10 | \n \n \n 26,129.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,887.20 | \n \n \n 25,401.41 | \n \n \n 26,012.56 | \n \n \n 26,724.26 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 23,372.80 | \n \n \n 23,689.06 | \n \n \n 24,425.29 | \n \n \n 25,270.54 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 6,363.30 | \n \n \n 6,460.73 | \n \n \n 6,953.76 | \n \n \n 7,485.28 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,831.53 | \n \n \n 6,904.30 | \n \n \n 7,343.79 | \n \n \n 7,756.76 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 4,423.87 | \n \n \n 4,764.13 | \n \n \n 5,780.16 | \n \n \n 6,786.08 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions on 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
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, 2025 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking factors, such as regulatory, legislative, or political changes, have been considered but are not deemed material and did not adjust ECL. This process is reviewed quarterly for continued appropriateness.
\nThe fulfillment cash flows include estimates of future cash flows, an adjustment to reflect time value of money and the\u00a0financial risks not included in the estimates of future cash flows and a risk adjustment for non-financial risk.
Measuring each abovementioned element requires significant judgment and estimates.
\nAegon aims to estimate future cash flows by considering a range of likely scenarios, each specifying the amount and timing of\u00a0cash flows and the probability of the outcomes. These cash flows are probability-weighted and discounted to derive an expected present value.
The objective is to use all reasonable, supportable information available at no undue cost or effort, rather than identifying every possible scenario. Simple modeling may be sufficient for some cases, while more complex methods might be needed for others. For example, if cash flows involve interrelated (implicit or explicit) options and respond nonlinearly to economic changes, Aegon often uses stochastic modeling techniques to estimate expected present values and project future cash flows across various economic scenarios. Other methods include closed-form solutions and replicating portfolio techniques.
\nWhen estimating future cash flows, Aegon sets actuarial assumptions for underwriting risk including policy claims (e.g.\u00a0mortality, longevity, or morbidity), policyholder behavior (e.g. lapses, surrender of policies or partial withdrawals), and property\u00a0& casualty loss ratios and expenses. These assumptions are reviewed annually, except for expense assumptions, which may be updated more frequently during quarterly expense monitoring.
\nMortality tables are developed using a blend of company experience and industry studies, considering product characteristics, own-risk selection criteria, target market, and historical experience. Mortality experience is regularly monitored and used to price new products and calculate liabilities for in-force contracts. For contracts that insure against survivorship or mortality, allowances are made for further longevity or mortality improvements. Morbidity assumptions are based on claims severity and frequency, adjusted for industry information, with industry surveys used for judgment-based assumptions such as morbidity improvement and long-term care (LTC) inflation.
Surrender and lapse rates depend on product features, policy duration, and external factors like interest rates and competitor behavior. Dynamic lapse assumptions reflect expected policyholder behavior under various scenarios. Assumptions are based on own experience and industry data, with lapse experience correlated to mortality and morbidity levels, as higher or lower levels of surrenders may indicate future claims will be higher or\u00a0lower than anticipated. Such correlations are accounted for in the mortality and morbidity assumptions.
Policyholder benefits linked to asset performance are projected at rates consistent with the discount rates applied. Crediting\u00a0rates for cash flows are determined using projected cash flows based on the group\u2019s crediting policies. Other\u00a0management actions are considered 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 business, actuarial assumptions for loss ratios impact fulfillment cash flows only for onerous contracts with remaining coverage and for contracts with incurred claims. Aegon uses various loss reserving techniques, historical claims data, and market inputs to estimate claims ratios, with\u00a0large claims assessed individually.
\nExpenses attributable to the fulfillment cash flows include acquisition, maintenance, and claims settlement costs, as well as unavoidable\u00a0 overhead costs. Investment expenses are included for contracts providing investment-related or investment-return services, or where Aegon\u2019s investment activities enhance policyholder benefits from insurance coverage. Aegon\u2019s expense assumptions are based on current 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\u00a0smaller units, further adjustments are made to reflect the long-term scale of the business.\u00a0When allocating the attributable expenses to groups of contracts, Aegon uses pricing or regulatory reporting approaches. Additional allocation keys are applied where IFRS requires more granularity.
\nThe expense inflation assumption is split into a\u00a0financial component calibrated to market observables and a non-financial component set as an actuarial assumption. The non-financial component represents the difference between general market inflation and Aegon-specific expense inflation. Some inflation assumptions (such as LTC utilization and health inflation in the\u00a0Americas) are entirely set as an actuarial assumption due to their weak correlation with general inflation indices and due to the lack of a hedge market for such rates.
\nAegon adjusts the estimated future cash flows to reflect the time value of money and the financial risks not included in the\u00a0cash flow estimates. The\u00a0discount rates applied to the estimates of the future cash flows reflects the characteristics of the cash flows and the liquidity characteristics of the\u00a0insurance contracts. They are consistent with observable market prices for financial instruments with similar cash flow characteristics. They exclude factors that influence market prices but do not impact the future cash flows of the insurance 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.
At initial recognition of a group of contracts, Aegon uses weighted-average discount rates over the period when contracts in\u00a0that group are issued.
IFRS explicitly mentions two calibration options for the discount rate, namely the \"top-down approach\" and the \"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 additional spread an investor can\u00a0earn by investing in a security that offers limited or no ability for the investor to exit the investment before 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.
\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\u00a0credit 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 are available, and then extrapolating the yield curve beyond market-observable maturities. Discount rates converge to an ultimate forward rate (linear grading over a 10-year period is assumed for the USD and EUR). A uniform last liquid point for EUR and USD is set at 30\u00a0years, while GBP is set at 50 years. The ultimate forward rates reflect a long-term view on nominal interest rates and are set by management for each currency, taking into account expected real interest rates and long-term inflation, together with the current market environment. The current ultimate forward rate assumption is 3.40% (December 31, 2024: 3.40%).
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.
| \n | \n\n \n December 31, 2025 | \n \n \n December 31, 2024 | \n ||||||||||
| \n \n \n \n Risk-free yield curves (%) \n | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n
| \n \n GBP | \n \n \n 3.54 | \n \n \n 3.67 | \n \n \n 4.04 | \n \n \n 4.36 | \n \n \n 4.54 | \n \n \n 4.59 | \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 3.48 | \n \n \n 3.77 | \n \n \n 4.28 | \n \n \n 4.84 | \n \n \n 5.16 | \n \n \n 5.00 | \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
Aegon sets ILPs at the level of the segment or major business unit, reflecting how it manages the investments and ALM risk for\u00a0the given block of liabilities. For Americas, Aegon has set ILPs by lines of business, which has resulted in 11 ILP curves. For\u00a0each unit, an ILP curve is constructed from market-observables returns on a reference portfolio of assets. The\u00a0reference 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).
To derive ILP curves, market spreads are adjusted for expected and unexpected default losses, and the ILP is calculated as the\u00a0weighted average of these adjusted spreads, using the line of business reference portfolio. The full ILP curve is derived by\u00a0interpolating between the observable tenors and then extrapolating the yield linearly beyond the ILP last liquid point to the\u00a0ultimate forward ILP. The last liquid point can be set separately for each duration bucket or, as a single point in time for the\u00a0entire 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 derived from historical default data, plus an adjustment for the 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 management's judgment.
Aegon updates the reference portfolio quarterly, and the ILP last liquid point and ILP ultimate forward rate are revised accordingly. The ILP curves of Aegon's significant portfolios 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 December 31, 2025 | \n \n \n December 31, 2024 | \n ||||||||||
| \n \n \n \n ILP per portfolio (%) \n | \n \n \n Country | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n
| \n \n Fixed Deferred Annuity | \n \n \n US | \n \n \n 0.92 | \n \n \n 0.99 | \n \n \n 1.06 | \n \n \n 1.15 | \n \n \n 1.16 | \n \n \n 1.16 | \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 1.01 | \n \n \n 1.07 | \n \n \n 1.13 | \n \n \n 1.19 | \n \n \n 1.19 | \n \n \n 1.20 | \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 0.82 | \n \n \n 0.83 | \n \n \n 0.84 | \n \n \n 1.06 | \n \n \n 1.14 | \n \n \n 1.31 | \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 0.91 | \n \n \n 0.94 | \n \n \n 0.96 | \n \n \n 1.11 | \n \n \n 1.17 | \n \n \n 1.28 | \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 0.85 | \n \n \n 0.88 | \n \n \n 0.91 | \n \n \n 1.07 | \n \n \n 1.13 | \n \n \n 1.27 | \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 0.36 | \n \n \n 0.51 | \n \n \n 0.64 | \n \n \n 0.64 | \n \n \n 0.63 | \n \n \n 0.65 | \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 0.76 | \n \n \n 0.76 | \n \n \n 0.76 | \n \n \n 0.76 | \n \n \n 0.76 | \n \n \n 0.72 | \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 0.45 | \n \n \n 0.45 | \n \n \n 0.45 | \n \n \n 0.45 | \n \n \n 0.45 | \n \n \n 0.44 | \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
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 arise from non-financial risk as it fulfils insurance contracts.
These risks 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 assumptions used to project future cash flows due to misestimation (parameter risk), and the risk of random fluctuations around the true estimates (contagion risk).
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 ceded reinsurance, and insurance contracts classified as held for sale.
Aegon generally applies a simplified confidence-interval technique to estimates the risk adjustment for non-financial risk, using an 80th percentile confidence level. Under this approach, a probability distribution is assumed for each particular risk, and the amount above the expected present value of future cash flows is determined using a shock factor. The\u00a0impacts 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\u00a075th percentile. Regardless of the technique applied, the confidence interval is computed across the entire product lifetime in\u00a0order to fully reflect the risk.
\nActuarial assumptions, excluding expenses, are reviewed in the second quarter for the United States and TLB, and in the fourth quarter for all other business units, while expense assumptions for all units are reviewed in the fourth quarter. These reviews are based on historical experience, observable market data, including transactions such as acquisitions and reinsurance, anticipated trends, and legislative changes. Similarly, the models and systems used to determine our liabilities and reinsurance assets are reviewed periodically and updated\u00a0as needed.
At the end of 2025, non-financial assumption changes mainly in Aegon\u2019s business in Americas, United Kingdom, and TLB resulted in an adverse pre-tax impact of EUR 515 million. Of this amount, EUR 265 million was absorbed by the CSM, EUR 177 million was recognized in the income statement, and EUR 73 million was recognized in OCI.
Of the total impact, Americas and TLB resulted in EUR 333 million, mainly due to strengthening of policyholder behavior assumptions to address adverse experience in Financial Assets, driven by the TLB Universal Life block reinsured to Transamerica, Variable Annuities and Fixed Annuities. In Protection Solutions, adverse assumption updates were driven by the workplace business, in part related to Medicare Supplement product addressing an industry-wide trend. These unfavorable underwriting assumptions was partly offset by favorable expense assumption updates in Individual Life. United Kingdom resulted in EUR 180 million, mainly from updated persistency assumptions, reflecting the ongoing commercial pressures in\u00a0the Platform and Traditional Products business.
Financial (economic) assumption updates resulted in a favorable impact of EUR 269 million, recognized in OCI, attributable to\u00a0a periodic adjustment of the illiquidity premium to align with Aegon\u2019s latest reinvestment strategy.
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 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 (excluded from insurance revenue); and the adjustment for non-performance risk that is applied to reinsurance contracts held.
\nOften, a single metric can be defined that captures multiple services under one contract. Aegon uses\u00a0different approaches to assess the relative weights of services benefits. In some cases, the weighting is\u00a0determined directly from the composition of the benefits under the contract. For example, for a life insurance product with an account value that is 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 which are the amounts repayable to policyholders, 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, the partial withdrawal, or the transfer of an insurance policy to another insurer. The investment component is determined net of any penalty or similar charges.
\nThe reinsurer's\u00a0nonperformance risk is based on Aegon\u2019s credit exposure, net of collateral, and the perceived counterparty default risk. In assessing credit exposure, Aegon takes into account treaty provisions for non-performance, such as the automatic recapture of the reinsured business on the reinsurer's default.
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\u00a0table\u00a0below\u00a0presents\u00a0information\u00a0on the valuation techniques and significant unobservable inputs used in recurring fair value measurements of\u00a0certain Level III financial instruments.
During 2024 and 2025, no valuation techniques or significant unobservable inputs were applied in the measurement of financial liabilities.
| \n | \n\n \n Valuation technique 1 | \n \n \n Significant unobservable input 2 | \n \n \n December 31, 2025 | \n \n \n \n \n Range (weighted average) \n | \n \n \n December 31, 2024 | \n \n \n \n \n Range (weighted average) \n | \n
| \n \n Financial assets | \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 5 | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 449 | \n \n \n n.a. | \n \n \n 688 | \n \n \n n.a. | \n
| \n | \n\n \n Discounted cash flow | \n \n \n Constant Prepayment Rate | \n \n \n - | \n \n \n - | \n \n \n 28 | \n \n \n 21.11% | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 79 | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 528 | \n \n | \n\n \n 799 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n Other | \n \n \n n.a. | \n \n \n 1 | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n \n Total FVOCI | \n \n | \n\n | \n\n \n 533 | \n \n | \n\n \n 799 | \n \n | \n
| \n | \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 50 | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n
| \n | \n\n \n Broker quote | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n \n \n 3 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 96 | \n \n \n n.a. | \n \n \n 94 | \n \n \n n.a. | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 14 | \n \n \n n.a. | \n \n \n 13 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 164 | \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 | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 3,220 | \n \n | \n\n \n 3,633 | \n \n | \n
| \n \n Tax credit investments | \n \n \n Discounted cash flow | \n \n \n Discount rate | \n \n \n 766 | \n \n \n 6.71% | \n \n \n 823 | \n \n \n 6.72% | \n
| \n \n Loans | \n \n \n Other | \n \n \n n.a. | \n \n \n 82 | \n \n | \n\n \n 82 | \n \n | \n
| \n \n Total FVPL | \n \n | \n\n | \n\n \n 4,068 | \n \n | \n\n \n 4,538 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets 3 | \n \n | \n\n | \n\n \n 4,765 | \n \n | \n\n \n 5,530 | \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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23787m14207p": { "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
The 2023 comparative numbers include amounts for discontinued operations, reflecting the sale of Aegon\u00a0the\u00a0Netherlands to\u00a0a.s.r., completed in July 2023, as shown in Aegon's Annual\u00a0Report\u00a02023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23779m14167p": { "value": "The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as\u00a0issued by the IASB and adopted by the European Union and with Title 9 of Book 2 of the Dutch Civil Code.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23777m14166p": { "value": "The consolidated financial statements of Aegon Ltd. were approved by the Board on March 25, 2026. The financial statements will be presented to the Annual General Meeting of Shareholders on June 10, 2026. In accordance with Bermuda law, the annual accounts are not adopted by the General Meeting but discussed with the General Meeting pursuant to our bye-laws.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23781m14168p": { "value": "\nThe accounting policies used in the consolidated financial statements are unchanged from 2024, except for IFRS standards and amendments that became effective for Aegon since January 1, 2025 and have been endorsed by the European Union:
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on August 15, 2023)
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, 2026, 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 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; and Amendments issued on August\u00a021, 2025) \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 December 18, 2024) \u2013 effective January 1, 2026
IFRS 18 Presentation and Disclosure in Financial Statements introduces operating profit and profit before financing and income taxes subtotals in the Consolidated income statement. The standard introduces new classification rules for income and expenses, affecting presentation, but not the measurement of the underlying transactions. The Group is currently working to identify all impacts on the Financial Statements. The most important impacts are:
Aegon has assessed and concluded that investing in assets is a main business activity of the Group;
Classification of net interest expense on the net defined benefit liability in the financing category.
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. Aegon identified operating result as a Management-defined Performance Measure.
The impact of other future amendments and standards on the financial statements is not material.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23784m14192p": { "value": "\nThe accounting policies used in the consolidated financial statements are unchanged from 2024, except for IFRS standards and amendments that became effective for Aegon since January 1, 2025 and have been endorsed by the European Union:
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on August 15, 2023)
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, 2026, 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 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; and Amendments issued on August\u00a021, 2025) \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 December 18, 2024) \u2013 effective January 1, 2026
IFRS 18 Presentation and Disclosure in Financial Statements introduces operating profit and profit before financing and income taxes subtotals in the Consolidated income statement. The standard introduces new classification rules for income and expenses, affecting presentation, but not the measurement of the underlying transactions. The Group is currently working to identify all impacts on the Financial Statements. The most important impacts are:
Aegon has assessed and concluded that investing in assets is a main business activity of the Group;
Classification of net interest expense on the net defined benefit liability in the financing category.
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. Aegon identified operating result as a Management-defined Performance Measure.
The impact of other future amendments and standards on the financial statements is not material.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21414m13894p": { "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 under the Group\u2019s accounting policies, 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 be an indicator that an\u00a0impairment exists in the consolidated financial statements. Non-controlling interests are initially stated at their share in the\u00a0fair 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 are consolidated 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\u00a0Group 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 the investment mandate;
Legal rights of the policyholder to the separate assets in the investment vehicle (e.g. policyholders could have the\u00a0voting rights related to these investments);
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. substantive voting rights of policyholders).
Exposure or rights to variability of returns may arise from, for example, investments where Aegon bears the risk; Aegon's investments where policyholders bear the risk; guarantees provided by Aegon on the return of policyholders in specific investment vehicles; fees dependent on fund value (e.g. asset management fees); and fees dependent on performance of\u00a0the\u00a0fund (e.g. performance fees).
Investment funds where Aegon acts as an agent are not consolidated due to lack of control. In particular, for\u00a0some separate accounts, the independent Board of Directors has substantive rights, meaning 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 as investment contracts. Where no repurchase obligation exists, the participations held by third parties are presented as non-controlling interests in\u00a0equity. Assets allocated to participations held by third parties or by the Group on behalf of policyholders are presented as investments.
Equity instruments issued by the Group that are held by investment funds are eliminated on consolidation. This\u00a0elimination is\u00a0reflected in equity and not in the measurement of related financial liabilities toward policyholders or\u00a0other third parties.
\nFor structured entities as defined in IFRS 12, the control assessment per IFRS 10 focuses on the purpose and design of\u00a0the\u00a0investee (with relation to the relevant activities that most significantly affect the structured entity) and the exposure to\u00a0variable returns, which for structured entities lies in interests through, for example derivatives, and will not be focused on\u00a0entities that are controlled by voting rights.
Consolidated structured entities include affiliated captive insurance companies (captives) with which Aegon enters into reinsurance agreements for risk and capital management. 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 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22043m14104p": { "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 under the Group\u2019s accounting policies, 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 be an indicator that an\u00a0impairment exists in the consolidated financial statements. Non-controlling interests are initially stated at their share in the\u00a0fair 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 control assessment per IFRS 10 focuses on the purpose and design of\u00a0the\u00a0investee (with relation to the relevant activities that most significantly affect the structured entity) and the exposure to\u00a0variable returns, which for structured entities lies in interests through, for example derivatives, and will not be focused on\u00a0entities that are controlled by voting rights.
Consolidated structured entities include affiliated captive insurance companies (captives) with which Aegon enters into reinsurance agreements for risk and capital management. 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 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22045m14105p": { "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. Assets\u00a0and liabilities are translated at closing rates on the reporting date. Income, expenses, and capital transactions (such\u00a0as\u00a0dividends) are translated at average exchange rates or at the prevailing rates on the transaction date, if more appropriate. Goodwill and fair value adjustments from the acquisition of a foreign entity are translated at the closing rates on\u00a0the reporting date.
Resulting exchange differences are recognized in the \"foreign currency translation reserve,\" within shareholders\u2019 equity. On\u00a0disposal of a foreign entity, 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22046m14106p": { "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 policyholder on the occurrence of an uncertain future event by which the\u00a0policyholder\u00a0will be adversely affected. Significant insurance risk is\u00a0determined on a present-value basis, where at least one scenario with commercial substance can be identified where the\u00a0Group pays significant additional benefits. For example, Aegon defines an additional benefit on death of at least 5% as significant. Additional benefits of less than 5% are considered on\u00a0a\u00a0case-by-case basis, taking into account all the\u00a0characteristics of the contract. Insurance contracts include products offering policyholders the option to take out insurance coverage at predetermined prices, provided this option has commercial substance.
Contracts that do not meet the definition of insurance contracts are treated as financial instruments and discussed in note\u00a02.8\u00a0Investment contracts with discretionary participation 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:
\nDo 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.
\nAegon classifies contracts into 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. Lapse risk or expense risk are not risks that a policyholder transfers to an insurer. Contracts in the same product line are in the same portfolio if they are managed together, and contracts in different product lines with dissimilar risks are in different portfolios.
Contracts must be managed together from the perspective of either the management of Aegon Ltd. or the management of its\u00a0operating segments. Information that is used to assess how risks are managed includes Aegon\u2019s internal management reporting, asset-liability management and asset allocation strategies.
\nContracts within a portfolio are segregated into groups based on their profitability at initial recognition. These include groups of insurance contracts that are onerous at initial recognition, and groups that are not onerous at initial recognition. The latter are further split into contracts with no significant possibility of becoming onerous in the future, and any remaining contracts in\u00a0the portfolio, if applicable.
Aegon uses two approaches to identify groups of contracts. The first approach is a bottom-up assessment, where contracts are grouped together on a contract-by-contract basis by considering the expected profitability of each contract. Alternatively, Aegon completes the grouping assessment at a higher level of aggregation if reasonable and supportable information shows that a set of contracts will, by definition, all be in the same group.
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 are measured together. After the quarter end, the cohort is closed and treated as \"in force\" in 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. They include incremental costs of originating insurance contracts, other (in)direct costs, and 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, motor, general liability, and disability and sickness insurance.
For measurement and income recognition purposes, Aegon classifies insurance contracts at initial recognition as with or without direct participation features, which are not subsequently reassessed. Aegon\u2019s\u00a0non-life business consists entirely of\u00a0insurance contracts without direct participation 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 participation 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 participation 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\u00a0Aegon\u00a0expects a substantial proportion of any change in the amounts to be paid to the policyholder to\u00a0vary 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 participation 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 is established, a two-step classification methodology is\u00a0carried out. An initial assessment based on product characteristics, followed by a quantitative assessment if the first step is\u00a0inconclusive:
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, 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.
\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 an investment management component, with only the latter deducted from total returns. As a critical judgment, when\u00a0the policyholder's share of fair value returns is between 50% and 70%, Aegon applies judgement based on qualitative and quantitative factors in product classification.
Assessing the variability in policyholder benefits often requires probability-weighted models, factoring\u00a0all scenarios where returns are impacted by the allocation of clearly identifiable assets, variable fees and guarantees. A single scenario with no variability does not automatically disqualify a product for\u00a0the\u00a0variable fee approach but is considered alongside scenarios in which the guarantee is not in-the-money at\u00a0the\u00a0expected termination date of the contract.
Examples of insurance contracts with direct participation features include unit-linked contracts issued by Aegon UK and Aegon Spain, and variable annuities issued in the Americas.
\nAlthough insurance contracts without direct participation features are not linked to underlying assets, there are products where Aegon provides investment-return services. A product is considered to provide an investment-return service if, and\u00a0only\u00a0if,\u00a0the 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\u00a0Aegon 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\u00a0registered index linked annuities.
Insurance contracts without direct participation features include all non-life insurance products issued by Aegon, as well as term insurance, whole life, fixed annuities,\u00a0registered indexed linked 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\").
\nThe fulfillment cash flows reflect Aegon\u2019s view of the current condition at the reporting date, consistent with observable market prices and all contractual terms and conditions with commercial substance within the contract boundary. Future\u00a0changes 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 that are partially linked to performance of underlying assets based on crediting policy, for instance for US universal life-type products. This provides the Group with discretion as to the timing and\u00a0amount of the cash flows to be paid to policyholders. Change in discretionary cash flows is regarded as relating to future services and adjusts the Contractual Service Margin. At inception of such contract, the Group specifies its commitment as crediting interest to policyholders\u2019 account balance based on Aegon\u2019s crediting policy, considering specific terms and conditions of the contracts. Where changes reflect management discretion, such as changes in crediting rates, they are treated as adjustments to the contractual service margin. Conversely, changes driven by financial risk assumptions (e.g., market interest rate shifts) are recognized in insurance finance income or expenses.
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 an immediate loss recognized in the income statement, with a corresponding loss component 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 compel the policyholder to pay premiums or has a substantive obligation to provide insurance contract services to the policyholder.
Examples of such cash flows 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\u00a0interprets 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, Aegon considers all insurance and financial risks that are transferred from\u00a0the policyholder excluding risks that result from the contract itself, such as expense risk or lapse risk. If Aegon provides investment-related services to insurance policyholders, the ability to reprice the fees or charges 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 to existing and new policyholders do\u00a0not extend the contract boundary, because they do not result in a valuable policyholder renewal option.
Some contracts with long contract boundaries 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. While the policyholder option can be repriced, Aegon cannot reprice or reassess the benefits of the entire policy. Therefore, the option is considered within the long contract boundary of the host contract, provided it can reasonably be expected to be utilized.
Contract boundaries are based on current facts and circumstances and may therefore change over time.
\nAt each reporting date, the carrying amount of a group of insurance contracts is the sum of the liability for remaining coverage and the liability for incurred claims. The liability for remaining coverage includes fulfillment cash flows related to future service allocated to that group and the contractual service margin of the group. The liability for incurred claims includes 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.
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 participation features as 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 participation 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 using 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.
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 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 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\u00a0expected to be provided in the future.
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. The coverage period relates to insurance coverage only for business under the General Model when contracts lack investment-return service, and to both insurance coverage and investment return service when contracts contain investment-return service. Coverage period considers 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 provides 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.
More information on the coverage units is provided in note 29.3.2.1 Weighting of coverage units.
\nAegon adjusts fulfillment cash flows for direct participation contracts to reflect 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 relate to future service and are adjusted according to the contractual service margin. Under the variable fee approach, changes in fulfillment cash flows are 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\u00a0underlying items. Examples include the interest accrued to projected fixed benefits and expense cash flows, and changes in\u00a0the value of financial guarantees.
\nThe policy on the recognition of revenue for insurance contracts with direct participation 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 participation 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 participation 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 insurance finance expense in the income statement or\u00a0in other comprehensive income.
Prior to the reporting period, Aegon demonstrates an economic offset between the above mentioned fulfillment cash flows from insurance contracts and the risk-mitigating items (that is 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.
\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 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 participation 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 assessed that reinsurance contracts held do not include components that need to be separated.
\nReinsurance contracts are grouped for measurement and income recognition purposes based on the similarity of risk, how\u00a0the contracts are managed, the expected profitability of the contracts at inception, and the period in which the\u00a0contracts are issued.
When grouping reinsurance contracts, Aegon considers the type of reinsurance coverage received (e.g. yearly renewable term, stop loss, or coinsurance).
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 participation features to\u00a0measure a group of reinsurance contracts held, albeit with the following modifications:
\nAegon estimates the present value of future cash flows of the group of reinsurance contracts held using assumptions 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 the counterparty exposure is collateralized, treaty provisions for non-performance, and special features of the regulatory environment.
\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 occuring 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 and is not netted with finance expenses related to insurance contracts issued.
\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 offset 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 participation 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 participation features, it includes the variable fees that Aegon expects to receive. Reinstatement premiums are included, when reinstatement is 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.
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:
Release of contractual service margin for services provided in the period;
Changes in risk adjustments for non-financial risk that do not relate to future service, excluding amounts allocated to\u00a0the\u00a0loss component;
Claims and other insurance service expenses expected to be incurred in the period, excluding amounts allocated to\u00a0the\u00a0loss\u00a0component;
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.
Insurance revenue recognized in the period also 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 participation 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 and reversals on assets for insurance acquisition cash flows.
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 a group of insurance contracts that are caused by changes in the value of underlying items (excluding additions and withdrawals).
\nFinancial risk identified by\u00a0Aegon can be one or more of credit risk; fluctuations in equity, real estate and capital markets; interest rate; and 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 participation 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 to disaggregate the risk adjustment for financial risks into an insurance service component and an insurance finance component, based on the extent to which the carrying amount of the group of insurance contracts or reinsurance contracts 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.
\nAegon disaggregates insurance finance expenses between profit or loss and other comprehensive income for insurance contracts without direct participation 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;
A rate that allocates the remaining revised expected finance income or expenses over the remaining duration at a constant rate (effective yield approach); or
For contracts using a crediting rate to determine amounts due to the policyholders using an allocation that is based on the\u00a0amounts credited in the period and expected to be credited in future periods (projected crediting rate approach).
The effective 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, registered index linked annuities and fixed indexed annuities. Other indirect participating contracts, such as fixed annuities, are accounted for\u00a0under the effective 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 actual switching results 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22993m14533p": { "value": "\nReinsurance contracts held are contracts entered into by Aegon 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 participation 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 assessed that reinsurance contracts held do not include components that need to be separated.
\nReinsurance contracts are grouped for measurement and income recognition purposes based on the similarity of risk, how\u00a0the contracts are managed, the expected profitability of the contracts at inception, and the period in which the\u00a0contracts are issued.
When grouping reinsurance contracts, Aegon considers the type of reinsurance coverage received (e.g. yearly renewable term, stop loss, or coinsurance).
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 participation features to\u00a0measure a group of reinsurance contracts held, albeit with the following modifications:
\nAegon estimates the present value of future cash flows of the group of reinsurance contracts held using assumptions 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 the counterparty exposure is collateralized, treaty provisions for non-performance, and special features of the regulatory environment.
\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 occuring 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 and is not netted with finance expenses related to insurance contracts issued.
\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 offset 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22981m14530p": { "value": "\nAegon recognizes insurance revenue as it provides services under groups of insurance contracts and under groups of contracts with discretionary participation 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 participation features, it includes the variable fees that Aegon expects to receive. Reinstatement premiums are included, when reinstatement is 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.
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:
Release of contractual service margin for services provided in the period;
Changes in risk adjustments for non-financial risk that do not relate to future service, excluding amounts allocated to\u00a0the\u00a0loss component;
Claims and other insurance service expenses expected to be incurred in the period, excluding amounts allocated to\u00a0the\u00a0loss\u00a0component;
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.
Insurance revenue recognized in the period also 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 participation 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 and reversals on assets for insurance acquisition cash flows.
Fees and commissions from investment management services and mutual funds are earned 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 if the investments outperform 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22049m14107p": { "value": "\nFinancial assets are recognized when Aegon becomes a party to the contractual provisions of the instrument.\u00a0Regular way purchases or sales are 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.
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:
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 Group management is compensated, i.e. whether the compensation is based on the fair value of the assets managed or\u00a0on the contractual cash flows collected;
The expected frequency, value and timing of sales.
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 or 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 that 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\u00a0collect contractual cash flows which 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:
Fair value hedges of recognized assets or liabilities or firm commitments;
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 are 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\u00a0FVPL, 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\u00a0described in note 4.2.6 Expected credit losses, which results in an accounting loss being recognized in profit or loss when an\u00a0asset 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.
\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\u00a0income from instruments measured at FVPL.\"
\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 may renegotiate or otherwise modify the contractual cash flows of financial assets. When this happens, Aegon assesses whether the new terms are substantially different to the original terms by considering, among other things, the\u00a0following 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.
Introduction of any substantial new terms, such as 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\u00a0fair\u00a0value and recalculates a new effective interest rate for the asset. The renegotiation date becomes the date of initial recognition for impairment calculation purposes, including to determine 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\u00a0held 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22227m14183p": { "value": "\nFinancial assets are recognized when Aegon becomes a party to the contractual provisions of the instrument.\u00a0Regular way purchases or sales are 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.
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:
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 Group management is compensated, i.e. whether the compensation is based on the fair value of the assets managed or\u00a0on the contractual cash flows collected;
The expected frequency, value and timing of sales.
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 or 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 that 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\u00a0collect contractual cash flows which 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:
Fair value hedges of recognized assets or liabilities or firm commitments;
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 are 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\u00a0FVPL, 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\u00a0described in note 4.2.6 Expected credit losses, which results in an accounting loss being recognized in profit or loss when an\u00a0asset 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.
\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\u00a0income from instruments measured at FVPL.\"
\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 may renegotiate or otherwise modify the contractual cash flows of financial assets. When this happens, Aegon assesses whether the new terms are substantially different to the original terms by considering, among other things, the\u00a0following 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.
Introduction of any substantial new terms, such as 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\u00a0fair\u00a0value and recalculates a new effective interest rate for the asset. The renegotiation date becomes the date of initial recognition for impairment calculation purposes, including to determine 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\u00a0another 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 which are compound instruments due to the nature of these financial instruments. 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 investment risk comprise unit-linked investment contracts, which are designated FVPL as they are contractually linked to a pool of financial assets measured at fair value. Risks related to these liabilities are managed and evaluated on a fair value basis under a documented policy of asset and liability management.
As these contracts are not quoted in active markets, their value is determined using valuation techniques such as discounted cash flow 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\u00a0that can be settled net in cash or by delivering or issuing another financial instrument.
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.
\nDeferred expenses comprise deferred transaction costs. Deferred 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 contracts are\u00a0recognized 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. Amortization is recognized in the income statement. Deferred\u00a0transaction costs are subject to impairment testing at least annually and 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\u00a0held 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 issued by the Group are classified as equity if they represent a residual interest in the Group's assets 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 with no final maturity date, repayment is at Aegon's discretion. For junior perpetual capital securities, Aegon has the option to defer coupon payments at its discretion. Perpetual capital securities are classified as\u00a0equity and measured at par, and those denominated in US dollars are translated into euros using historical exchange rates. Treasury shares are deducted from Group equity.
Non-cumulative subordinated notes were identified as a compound instrument. Aegon had an unconditional right to avoid delivering cash or another financial asset to settle the coupon payments. The redemption of the principal was not at the discretion of Aegon. 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 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\u00a0this 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 euros 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 directly attributable to the\u00a0issuing or buying back of the compound instruments are 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 participation 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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22225m14182p": { "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 may renegotiate or otherwise modify the contractual cash flows of financial assets. When this happens, Aegon assesses whether the new terms are substantially different to the original terms by considering, among other things, the\u00a0following 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.
Introduction of any substantial new terms, such as 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\u00a0fair\u00a0value and recalculates a new effective interest rate for the asset. The renegotiation date becomes the date of initial recognition for impairment calculation purposes, including to determine 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22976m14527p": { "value": "\nThe Group classifies debt instruments at fair value through profit or 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 that 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:
Fair value hedges of recognized assets or liabilities or firm commitments;
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 are 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\u00a0income from instruments measured at FVPL.\"
\nIn the United Kingdom, financial liabilities where the policyholder bears investment risk comprise unit-linked investment contracts, which are designated FVPL as they are contractually linked to a pool of financial assets measured at fair value. Risks related to these liabilities are managed and evaluated on a fair value basis under a documented policy of asset and liability management.
As these contracts are not quoted in active markets, their value is determined using valuation techniques such as discounted cash flow 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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22913m14507p": { "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:
Fair value hedges of recognized assets or liabilities or firm commitments;
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 are disclosed in note 20 Derivatives.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22979m14528p": { "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:
Fair value hedges of recognized assets or liabilities or firm commitments;
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 are disclosed in note 20 Derivatives.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22980m14529p": { "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:
Fair value hedges of recognized assets or liabilities or firm commitments;
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 are disclosed in note 20 Derivatives.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22051m14108p": { "value": "\nA financial instrument issued by the Group is classified as a liability if the contractual obligation must be settled in cash or\u00a0another 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 which are compound instruments due to the nature of these financial instruments. 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 investment risk comprise unit-linked investment contracts, which are designated FVPL as they are contractually linked to a pool of financial assets measured at fair value. Risks related to these liabilities are managed and evaluated on a fair value basis under a documented policy of asset and liability management.
As these contracts are not quoted in active markets, their value is determined using valuation techniques such as discounted cash flow 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\u00a0that can be settled net in cash or by delivering or issuing another financial instrument.
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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22224m14181p": { "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 which are compound instruments due to the nature of these financial instruments. 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22052m14109p": { "value": "\nFees and commissions from investment management services and mutual funds are earned 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 if the investments outperform 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22053m14110p": { "value": "\nThe Group does not recognize intangible assets for costs directly incurred in fulfilling insurance contracts, which include both direct costs and an allocation of fixed and variable overhead costs.
\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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22613m14304p": { "value": "\nThe Group does not recognize intangible assets for costs directly incurred in fulfilling insurance contracts, which include both direct costs and an allocation of fixed and variable overhead costs.
\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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22054m14111p": { "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, including the cost of replacing part of the real estate and borrowing cost if recognition criteria are met. Subsequently, investments in real estate are measured\u00a0at fair value with fair value changes recognized in\u00a0the\u00a0income statement. Real estate held for own use is carried at its revalued amount, which is the fair value at\u00a0the date of revaluation less subsequent accumulated depreciation and impairment\u00a0losses. Depreciation is calculated on\u00a0a\u00a0straight-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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22055m14112p": { "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 to account for a step acquisition of a joint venture or associate, treating the fair value of previously held interest at the date that joint control or significant influence is obtained as the\u00a0cost for the initial recognition of\u00a0equity 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 at FVPL because it manages them on a fair value basis.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22370m14239p": { "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 to account for a step acquisition of a joint venture or associate, treating the fair value of previously held interest at the date that joint control or significant influence is obtained as the\u00a0cost for the initial recognition of\u00a0equity 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 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 equity-accounted associates when there is objective evidence of decreased\u00a0recoverability of the carrying amount. For example, 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 defined a fair value being continuously below the carrying amount for a period of six months as prolonged.
Interests held by venture capital entities, mutual funds, and investment funds that qualify as an associate are accounted for as\u00a0an 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22056m14113p": { "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 equity-accounted associates when there is objective evidence of decreased\u00a0recoverability of the carrying amount. For example, 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 defined a fair value being continuously below the carrying amount for a period of six months as prolonged.
Interests held by venture capital entities, mutual funds, and investment funds that qualify as an associate are accounted for as\u00a0an 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22057m14114p": { "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\u00a0held 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24357m14115p": { "value": "\nAssets are tested individually for impairment when indications suggest the asset may be impaired. Goodwill and intangible assets with an undefined life are tested at least once a year, or more frequently if\u00a0an event or change in circumstances 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.
\nAegon measures credit risk in line with the IFRS 9 approach for Expected Credit Loss (ECL). ECL is calculated as the product of\u00a0the projected probability of default (PD), the loss given default (LGD), and the exposure at default (EAD), discounted at an\u00a0appropriate rate. ECL is then determined as the probability-weighted, discounted credit loss across multiple scenarios (for\u00a0example,\u00a0base, positive, adverse).
\nAegon uses the \"three-stage\" model for impairment as outlined in IFRS 9, based on relative changes in credit quality since initial recognition. The table below shows the characteristics of the three stages.
| \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 the staging of financial instruments, Aegon incorporates multiple, forward looking macro- scenarios to drive the\u00a0ECL\u00a0provision. Forward-looking inputs used to measure ECLs must align with those used to assess significant increases in\u00a0credit\u00a0risk.
The Group uses different models to calculate ECL across asset classes. The following sections outline the Group\u2019s key judgments and assumptions for each model.
For bonds and private placements, the Group uses a global correlation model that links credit quality movements across asset classes to macroeconomic trends. This model determines conditional PD and LGD under specific macroeconomic scenarios. Unconditional PD and LGD curves are developed using distinct methods for sovereign debt, corporate bonds, and\u00a0private placements.
For commercial mortgage loans and mortgage-backed securities, parameters are estimated using commercial mortgage metrics. These build on corporate bond PD and LGD estimates, adjusted for factors like debt service coverage and loan-to-value ratios.
Asset-backed securities are modeled separately, with instruments pooled by collateral type, and credit-loss parameters estimated collectively. For collateralized debt (loan) obligations (CDOs and CLOs), different models are applied depending on\u00a0the region of the exposure.
Aegon considers a financial instrument to have experienced an SICR 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 Financial guarantees | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \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 increase in credit risk relative to origination.\u00a0The absolute threshold defines a stage for each rating and is primarily used when the rating at origination is unavailable or when an instrument is already in default. The relative PD thresholds can be converted into rating-based thresholds using Moody\u2019s\u00a0standard rating to PD mappings. The\u00a0difference between the PD at\u00a0origination and the PD corresponding to the threshold determines the number of notches that the rating must drop by. For\u00a0example, for a one-year-old instrument with a one-year remaining maturity this gives the following result:
\n\nFor debt securities, private loans, structured finance securities and deposits with financial institutions the watchlist approach is applied as an additional qualitative criterion. Instruments on the watchlist are closely monitored. Assets are added to the watchlist if their 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. For debt securities and private loans, this assessment is performed at the counterparty level and on a periodic basis. The Group periodically reviews the criteria used to identify SICR for\u00a0appropriateness. For loan commitments and financial guarantees, Aegon defines default consistently with the related loan or financial instrument, considering the same risk factors.
\nA backstop is applied to exposures deemed to have experienced an SICR when the borrower is more than 30 days past due on contractual payments in structured finance and 60 days in commercial mortgage loans. No\u00a0backstop is applied to the other asset classes.
\nAegon has used the low credit risk exemption for debt instruments. Debt instruments that have a credit rating of \"investment grade\" (rating \"BBB\" or higher) are considered to have low credit risk. External and internal credit ratings are used, respectively, to assess whether an SICR has occurred for these assets.
\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 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 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 Financial guarantee contracts | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n
In addition to the criteria in the table above, Aegon identifies other indicators of unlikelihood of payment, such as a lack of future ability to generate cash flows, concerns about sources of recurring income, increased overall leverage of the borrower, material fraud, or the death of a client.
All the criteria above have been applied to Aegon\u2019s financial instruments and align with the definition of default used for internal credit risk management purposes. This definition is consistently used in modeling PD and EAD throughout Aegon\u2019s expected loss calculations.
An instrument is considered \"cured\" when it no longer meets any default criteria for six consecutive months and the obligor is\u00a0assessed as likely to pay. This six-month period assesses the likelihood that a financial instrument will return to default status after cure, using different cure definitions.
\nAegon uses a\u00a0set\u00a0of\u00a0variables describing the state of the macroeconomy as input to the calculation of the probability of default and prepayment.
Subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the\u00a0Group 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.
The lifetime PD for a financial instrument is calculated by summing the probabilities of all future developments that end up in the ECL. All possible future developments are enumerated, and a probability is estimated for each using statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of SICR and the calculation of ECL both incorporate forward-looking information.
The impact of economic variables on ECL and lifetime PD varies by financial instrument, with expert judgment applied throughout the process. Forecasts for these variables (the \u201cbase economic scenario\u201d) reflect Aegon\u2019s best estimate for\u00a0the\u00a0next five years. Beyond that, a mean reversion approach is used, assuming variables return to long-term averages (for\u00a0example,\u00a0unemployment rates or GDP growth) over three years. A statistical regression analysis has been performed to assess how historical changes in macroeconomic variables have influenced default and prepayment rates.
Starting from the base scenario, three macroeconomic scenarios \u2014 positive, neutral, and negative \u2014 are generated by applying shocks to macroeconomic variables, reflecting their historical correlations. These shocks correspond to the average deviation from the long-term mean observed in the best/worst 10% of historical quarters. ECL is calculated for each scenario, weighted accordingly, and then summed up. This multi-scenario approach ensures the ECL reflects a balanced estimate, not just the most likely scenario. The Group considers these\u00a0forecasts to represent its best estimate of the possible outcomes.
The Group writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and no reasonable expectation of recovery remains. Indicators include (i) ceasing enforcement activity; and (ii) where Aegon\u2019s recovery method is foreclosing on collateral, and the\u00a0value of\u00a0the collateral is not expected to fully recover.
The Group may modify loan terms through commercial renegotiations or for distressed loans to maximize recovery. Such\u00a0restructuring activities include extended payment terms and penalty interest arrangements. Policies are based on\u00a0management\u2019s judgment of indicators suggesting continued payment and are reviewed continuously.
\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:
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;
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments derecognized in the period;
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of\u00a0inputs to models;
Impacts on the measurement of ECL due to changes made to models and assumptions;
Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during\u00a0the period.
Assets are tested individually for impairment when indications suggest the asset may be impaired. Goodwill and intangible assets with an undefined life are tested at least once a year, or more frequently if\u00a0an event or change in circumstances 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22986m14532p": { "value": "\nFinancial instruments issued by the Group are classified as equity if they represent a residual interest in the Group's assets 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 with no final maturity date, repayment is at Aegon's discretion. For junior perpetual capital securities, Aegon has the option to defer coupon payments at its discretion. Perpetual capital securities are classified as\u00a0equity and measured at par, and those denominated in US dollars are translated into euros using historical exchange rates. Treasury shares are deducted from Group equity.
When the Group reacquires its own equity instrument and includes the share as an underlying item of direct participation 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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24394m14188p": { "value": "\nFinancial instruments issued by the Group are classified as equity if they represent a residual interest in the Group's assets 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 with no final maturity date, repayment is at Aegon's discretion. For junior perpetual capital securities, Aegon has the option to defer coupon payments at its discretion. Perpetual capital securities are classified as\u00a0equity and measured at par, and those denominated in US dollars are translated into euros using historical exchange rates. Treasury shares are deducted from Group equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22292m14208p": { "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. Non-service-related benefits are recognized when the event that results in the 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. 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 restricted 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\u00a0reimbursements by associated third parties of some or all of the expenditure required to settle a defined benefit obligation, a\u00a0reimbursement 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 comprises the current year service cost and net interest on the net defined benefit liability (asset), both of which are recognized in profit or loss.
Remeasurements of the net defined benefit liability (asset, recognized in other comprehensive income), are revisited quarterly and are not 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\u00a0number\u00a0of shares that will vest may partly depend on Aegon\u2019s relative total shareholder return compared with a peer group or on 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, if the employee is not entitled to receive dividends during the\u00a0vesting 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, such as return on\u00a0regulatory 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 an update in the number of instruments expected to vest, therefore a remeasurement of cumulative expenses.
Costs for long-term incentive plans are recognized in the income statement with a corresponding increase in\u00a0shareholders\u2019 equity, as services are rendered. Cumulative expense recognized at the reporting date reflects Aegon\u2019s best estimate of\u00a0the\u00a0number of shares expected to vest ultimately.
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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22223m14180p": { "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. 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 restricted 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\u00a0reimbursements by associated third parties of some or all of the expenditure required to settle a defined benefit obligation, a\u00a0reimbursement 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22222m14179p": { "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\u00a0number\u00a0of shares that will vest may partly depend on Aegon\u2019s relative total shareholder return compared with a peer group or on 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, if the employee is not entitled to receive dividends during the\u00a0vesting 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, such as return on\u00a0regulatory 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 an update in the number of instruments expected to vest, therefore a remeasurement of cumulative expenses.
Costs for long-term incentive plans are recognized in the income statement with a corresponding increase in\u00a0shareholders\u2019 equity, as services are rendered. Cumulative expense recognized at the reporting date reflects Aegon\u2019s best estimate of\u00a0the\u00a0number of shares expected to vest ultimately.
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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22059m14116p": { "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 for the year comprises current and deferred tax. Current tax is calculated using rates that have been enacted or substantively enacted by the\u00a0reporting date, considering non-taxable or disallowed items and any adjustments to tax payable relating to previous years.
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.
Deferred tax assets and liabilities are recognized, using the liability method, for temporary differences between the\u00a0carrying and tax values 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 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 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.
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 or loss, other comprehensive income or directly in equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22245m14189p": { "value": "\nDeferred tax assets and liabilities are recognized, using the liability method, for temporary differences between the\u00a0carrying and tax values 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 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 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.
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 or loss, other comprehensive income or directly in equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22060m14117p": { "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 and 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 with a lease term of 12 months or less and for 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 leased assets 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22061m14118p": { "value": "\nExcept for expenses made to acquire insurance contracts and investment contracts with discretionary participation features, all expenses are incurred as related activities are performed.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24580m14834p": { "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 participation features (please see note 29 (Re)Insurance contracts and Investment contracts with discretionary participation features (29 Insurance contracts)\u00a0), and the measurement of the expected credit loss allowance (please see note 4 Financial risks).
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, such as the conflicts between Ukraine and Russia and between Israel and Hamas, which continued in 2025; and the increased trade frictions that can lead to persistent volatility in energy and commodity prices, supply chain disruptions and shifting global trade patterns. In addition to causing a humanitarian crisis, these events impacted global financial markets and triggered 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.\u00a0The conflict in Iran, which escalated in February 2026, is expected to exert upward pressure on global inflation, primarily through elevated energy prices and broader supply\u2011chain disruptions, which may increase transportation, production, and consumer costs worldwide.
\nThe consolidated financial statements have been prepared on a going concern basis, on the assumption that the Company will continue in operation for the foreseeable future. From\u00a0December 31, 2025, management assessed the following main areas: financial performance; capital adequacy; financial position and flexibility; liquidity; ability to\u00a0access capital markets; leverage ratios and the level of Cash Capital at Holding, and concluded that the going concern assumption for Aegon is appropriate. For\u00a0further details, see note 37 Capital management and solvency.
\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, 2025, 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 (for example, the likelihood of customers defaulting and the resulting losses). Explanation of the inputs, assumptions, judgements and estimation techniques used in measuring ECL and information incorporating forward-looking information into the measurement of the ECL is further detailed in note 4.2 Credit risk.
\nThe classification of financial assets is based on Aegon\u2019s business model for managing them and their contractual cash flow characteristics. Aegon determines the classification of the financial assets by assessing the business model and whether the\u00a0contractual terms of the assets are solely payments of principal and interest (SPPI) on the principal amount outstanding. The\u00a0classification of financial assets determines how they are accounted for and measured on an ongoing basis.
\nFair value is defined as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. 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
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 the\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 valuation techniques for which any significant input is not based on observable market data.
The degree of judgment in measuring fair value inversely correlates with the level of observable valuation inputs. Aegon prioritizes observable inputs and minimizes unobservable ones. Financial instruments with quoted prices in active markets require less judgment, while those without quoted prices need more judgment and use models or pricing techniques.
Assets and liabilities are categorized within the fair value hierarchy based on the lowest significant input. An active market provides ongoing pricing information, while inactive markets require assurance that transaction prices reflect fair value or\u00a0that\u00a0they require adjustments to reflect fair value.
Most valuation techniques use observable market data, ensuring high reliability. However, some assets and liabilities rely on\u00a0unobservable inputs, making their fair value more judgmental. Instruments classified as level III are significantly influenced by\u00a0unobservable inputs, meaning little current market data is available. Aegon\u2019s valuation techniques align with market participants' approaches, but different methodologies could yield different fair value estimates.
Aegon assigns fair value levels to instruments based on type and price source, periodically reviewing this logic to adapt to\u00a0the\u00a0current market environment.
For further details on fair value hierarchy and fair value measurement, refer to note 38 Fair value.
\nAegon uses the \"three-stage\" model for impairment as outlined in IFRS 9, based on relative changes in credit quality since initial recognition. The table below shows the characteristics of the three stages.
| \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 the staging of financial instruments, Aegon incorporates multiple, forward looking macro- scenarios to drive the\u00a0ECL\u00a0provision. Forward-looking inputs used to measure ECLs must align with those used to assess significant increases in\u00a0credit\u00a0risk.
The Group uses different models to calculate ECL across asset classes. The following sections outline the Group\u2019s key judgments and assumptions for each model.
For bonds and private placements, the Group uses a global correlation model that links credit quality movements across asset classes to macroeconomic trends. This model determines conditional PD and LGD under specific macroeconomic scenarios. Unconditional PD and LGD curves are developed using distinct methods for sovereign debt, corporate bonds, and\u00a0private placements.
For commercial mortgage loans and mortgage-backed securities, parameters are estimated using commercial mortgage metrics. These build on corporate bond PD and LGD estimates, adjusted for factors like debt service coverage and loan-to-value ratios.
Asset-backed securities are modeled separately, with instruments pooled by collateral type, and credit-loss parameters estimated collectively. For collateralized debt (loan) obligations (CDOs and CLOs), different models are applied depending on\u00a0the region of the exposure.
The following tables contain an analysis of Aegon\u2019s credit risk exposure for debt instruments and loans for which an ECL allowance is\u00a0recognized.\u00a0All asset categories not presented here are\u00a0determined to have non-material credit risk or to be of\u00a0a\u00a0short-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 Financial assets | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n 3,843 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,843 | \n \n \n 3,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,295 | \n
| \n \n AA | \n \n \n 7,787 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 7,788 | \n \n \n 9,100 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 9,101 | \n
| \n \n A | \n \n \n 18,394 | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 18,403 | \n \n \n 19,443 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19,443 | \n
| \n \n BBB | \n \n \n 18,050 | \n \n \n 84 | \n \n \n - | \n \n \n 1 | \n \n \n 18,135 | \n \n \n 20,724 | \n \n \n 7 | \n \n \n - | \n \n \n 1 | \n \n \n 20,732 | \n
| \n \n BB | \n \n \n 810 | \n \n \n 124 | \n \n \n - | \n \n \n - | \n \n \n 934 | \n \n \n 949 | \n \n \n 157 | \n \n \n - | \n \n \n - | \n \n \n 1,106 | \n
| \n \n B | \n \n \n 150 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 245 | \n \n \n 361 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 456 | \n
| \n \n CCC and lower | \n \n \n 48 | \n \n \n 55 | \n \n \n 221 | \n \n \n 74 | \n \n \n 398 | \n \n \n 85 | \n \n \n 79 | \n \n \n 289 | \n \n \n 91 | \n \n \n 544 | \n
| \n \n Net carrying amount | \n \n \n 49,082 | \n \n \n 358 | \n \n \n 232 | \n \n \n 75 | \n \n \n 49,747 | \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 Expected credit loss | \n \n \n \n \n (189) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \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 Loans at | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n Internal grade 1 | \n \n \n 847 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 847 | \n \n \n 977 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 1,013 | \n
| \n \n Internal grade 2 | \n \n \n 4,023 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,023 | \n \n \n 4,410 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n
| \n \n Internal grade 3 | \n \n \n 4,304 | \n \n \n 15 | \n \n \n - | \n \n \n - | \n \n \n 4,319 | \n \n \n 4,539 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 4,546 | \n
| \n \n Internal grade 4 | \n \n \n 413 | \n \n \n 7 | \n \n \n 3 | \n \n \n - | \n \n \n 423 | \n \n \n 644 | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 654 | \n
| \n \n Internal grade 5 | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n 4 | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 81 | \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 9,587 | \n \n \n 115 | \n \n \n 3 | \n \n \n - | \n \n \n 9,705 | \n \n \n 10,573 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n
| \n \n Expected credit loss | \n \n \n \n \n (11) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (33) \n | \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 | \n \n \n 9,575 | \n \n \n 94 | \n \n \n 2 | \n \n \n - | \n \n \n 9,672 | \n \n \n 10,535 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n
Aegon uses a\u00a0set\u00a0of\u00a0variables describing the state of the macroeconomy as input to the calculation of the probability of default and prepayment.
Subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the\u00a0Group 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.
The lifetime PD for a financial instrument is calculated by summing the probabilities of all future developments that end up in the ECL. All possible future developments are enumerated, and a probability is estimated for each using statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of SICR and the calculation of ECL both incorporate forward-looking information.
The impact of economic variables on ECL and lifetime PD varies by financial instrument, with expert judgment applied throughout the process. Forecasts for these variables (the \u201cbase economic scenario\u201d) reflect Aegon\u2019s best estimate for\u00a0the\u00a0next five years. Beyond that, a mean reversion approach is used, assuming variables return to long-term averages (for\u00a0example,\u00a0unemployment rates or GDP growth) over three years. A statistical regression analysis has been performed to assess how historical changes in macroeconomic variables have influenced default and prepayment rates.
Starting from the base scenario, three macroeconomic scenarios \u2014 positive, neutral, and negative \u2014 are generated by applying shocks to macroeconomic variables, reflecting their historical correlations. These shocks correspond to the average deviation from the long-term mean observed in the best/worst 10% of historical quarters. ECL is calculated for each scenario, weighted accordingly, and then summed up. This multi-scenario approach ensures the ECL reflects a balanced estimate, not just the most likely scenario. 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 on December 31, 2025 | \n \n | \n\n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n 2029 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.29 | \n \n \n 4.32 | \n \n \n 4.33 | \n \n \n 4.30 | \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 4.39 | \n \n \n 4.41 | \n \n \n 4.33 | \n \n \n 4.30 | \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 3.05 | \n \n \n 3.76 | \n \n \n 4.02 | \n \n \n 4.16 | \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 4.78 | \n \n \n 4.59 | \n \n \n 4.29 | \n \n \n 4.05 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.83 | \n \n \n 3.94 | \n \n \n 3.66 | \n \n \n 3.47 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.34 | \n \n \n 7.60 | \n \n \n 6.16 | \n \n \n 4.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 429.08 | \n \n \n 438.87 | \n \n \n 455.20 | \n \n \n 471.22 | \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 450.23 | \n \n \n 472.07 | \n \n \n 494.28 | \n \n \n 513.52 | \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 362.72 | \n \n \n 383.66 | \n \n \n 404.10 | \n \n \n 420.99 | \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 24,484.94 | \n \n \n 24,932.78 | \n \n \n 25,485.10 | \n \n \n 26,129.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,887.20 | \n \n \n 25,401.41 | \n \n \n 26,012.56 | \n \n \n 26,724.26 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 23,372.80 | \n \n \n 23,689.06 | \n \n \n 24,425.29 | \n \n \n 25,270.54 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 6,363.30 | \n \n \n 6,460.73 | \n \n \n 6,953.76 | \n \n \n 7,485.28 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,831.53 | \n \n \n 6,904.30 | \n \n \n 7,343.79 | \n \n \n 7,756.76 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 4,423.87 | \n \n \n 4,764.13 | \n \n \n 5,780.16 | \n \n \n 6,786.08 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions on 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
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, 2025 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking factors, such as regulatory, legislative, or political changes, have been considered but are not deemed material and did not adjust ECL. This process is reviewed quarterly for continued appropriateness.
\nThe fulfillment cash flows include estimates of future cash flows, an adjustment to reflect time value of money and the\u00a0financial risks not included in the estimates of future cash flows and a risk adjustment for non-financial risk.
Measuring each abovementioned element requires significant judgment and estimates.
\nAegon aims to estimate future cash flows by considering a range of likely scenarios, each specifying the amount and timing of\u00a0cash flows and the probability of the outcomes. These cash flows are probability-weighted and discounted to derive an expected present value.
The objective is to use all reasonable, supportable information available at no undue cost or effort, rather than identifying every possible scenario. Simple modeling may be sufficient for some cases, while more complex methods might be needed for others. For example, if cash flows involve interrelated (implicit or explicit) options and respond nonlinearly to economic changes, Aegon often uses stochastic modeling techniques to estimate expected present values and project future cash flows across various economic scenarios. Other methods include closed-form solutions and replicating portfolio techniques.
\nWhen estimating future cash flows, Aegon sets actuarial assumptions for underwriting risk including policy claims (e.g.\u00a0mortality, longevity, or morbidity), policyholder behavior (e.g. lapses, surrender of policies or partial withdrawals), and property\u00a0& casualty loss ratios and expenses. These assumptions are reviewed annually, except for expense assumptions, which may be updated more frequently during quarterly expense monitoring.
\nMortality tables are developed using a blend of company experience and industry studies, considering product characteristics, own-risk selection criteria, target market, and historical experience. Mortality experience is regularly monitored and used to price new products and calculate liabilities for in-force contracts. For contracts that insure against survivorship or mortality, allowances are made for further longevity or mortality improvements. Morbidity assumptions are based on claims severity and frequency, adjusted for industry information, with industry surveys used for judgment-based assumptions such as morbidity improvement and long-term care (LTC) inflation.
Surrender and lapse rates depend on product features, policy duration, and external factors like interest rates and competitor behavior. Dynamic lapse assumptions reflect expected policyholder behavior under various scenarios. Assumptions are based on own experience and industry data, with lapse experience correlated to mortality and morbidity levels, as higher or lower levels of surrenders may indicate future claims will be higher or\u00a0lower than anticipated. Such correlations are accounted for in the mortality and morbidity assumptions.
Policyholder benefits linked to asset performance are projected at rates consistent with the discount rates applied. Crediting\u00a0rates for cash flows are determined using projected cash flows based on the group\u2019s crediting policies. Other\u00a0management actions are considered 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 business, actuarial assumptions for loss ratios impact fulfillment cash flows only for onerous contracts with remaining coverage and for contracts with incurred claims. Aegon uses various loss reserving techniques, historical claims data, and market inputs to estimate claims ratios, with\u00a0large claims assessed individually.
\nExpenses attributable to the fulfillment cash flows include acquisition, maintenance, and claims settlement costs, as well as unavoidable\u00a0 overhead costs. Investment expenses are included for contracts providing investment-related or investment-return services, or where Aegon\u2019s investment activities enhance policyholder benefits from insurance coverage. Aegon\u2019s expense assumptions are based on current 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\u00a0smaller units, further adjustments are made to reflect the long-term scale of the business.\u00a0When allocating the attributable expenses to groups of contracts, Aegon uses pricing or regulatory reporting approaches. Additional allocation keys are applied where IFRS requires more granularity.
\nThe expense inflation assumption is split into a\u00a0financial component calibrated to market observables and a non-financial component set as an actuarial assumption. The non-financial component represents the difference between general market inflation and Aegon-specific expense inflation. Some inflation assumptions (such as LTC utilization and health inflation in the\u00a0Americas) are entirely set as an actuarial assumption due to their weak correlation with general inflation indices and due to the lack of a hedge market for such rates.
\nAegon adjusts the estimated future cash flows to reflect the time value of money and the financial risks not included in the\u00a0cash flow estimates. The\u00a0discount rates applied to the estimates of the future cash flows reflects the characteristics of the cash flows and the liquidity characteristics of the\u00a0insurance contracts. They are consistent with observable market prices for financial instruments with similar cash flow characteristics. They exclude factors that influence market prices but do not impact the future cash flows of the insurance 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.
At initial recognition of a group of contracts, Aegon uses weighted-average discount rates over the period when contracts in\u00a0that group are issued.
IFRS explicitly mentions two calibration options for the discount rate, namely the \"top-down approach\" and the \"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 additional spread an investor can\u00a0earn by investing in a security that offers limited or no ability for the investor to exit the investment before 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.
\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\u00a0credit 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 are available, and then extrapolating the yield curve beyond market-observable maturities. Discount rates converge to an ultimate forward rate (linear grading over a 10-year period is assumed for the USD and EUR). A uniform last liquid point for EUR and USD is set at 30\u00a0years, while GBP is set at 50 years. The ultimate forward rates reflect a long-term view on nominal interest rates and are set by management for each currency, taking into account expected real interest rates and long-term inflation, together with the current market environment. The current ultimate forward rate assumption is 3.40% (December 31, 2024: 3.40%).
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.
| \n | \n\n \n December 31, 2025 | \n \n \n December 31, 2024 | \n ||||||||||
| \n \n \n \n Risk-free yield curves (%) \n | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n
| \n \n GBP | \n \n \n 3.54 | \n \n \n 3.67 | \n \n \n 4.04 | \n \n \n 4.36 | \n \n \n 4.54 | \n \n \n 4.59 | \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 3.48 | \n \n \n 3.77 | \n \n \n 4.28 | \n \n \n 4.84 | \n \n \n 5.16 | \n \n \n 5.00 | \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
Aegon sets ILPs at the level of the segment or major business unit, reflecting how it manages the investments and ALM risk for\u00a0the given block of liabilities. For Americas, Aegon has set ILPs by lines of business, which has resulted in 11 ILP curves. For\u00a0each unit, an ILP curve is constructed from market-observables returns on a reference portfolio of assets. The\u00a0reference 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).
To derive ILP curves, market spreads are adjusted for expected and unexpected default losses, and the ILP is calculated as the\u00a0weighted average of these adjusted spreads, using the line of business reference portfolio. The full ILP curve is derived by\u00a0interpolating between the observable tenors and then extrapolating the yield linearly beyond the ILP last liquid point to the\u00a0ultimate forward ILP. The last liquid point can be set separately for each duration bucket or, as a single point in time for the\u00a0entire 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 derived from historical default data, plus an adjustment for the 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 management's judgment.
Aegon updates the reference portfolio quarterly, and the ILP last liquid point and ILP ultimate forward rate are revised accordingly. The ILP curves of Aegon's significant portfolios 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 December 31, 2025 | \n \n \n December 31, 2024 | \n ||||||||||
| \n \n \n \n ILP per portfolio (%) \n | \n \n \n Country | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n
| \n \n Fixed Deferred Annuity | \n \n \n US | \n \n \n 0.92 | \n \n \n 0.99 | \n \n \n 1.06 | \n \n \n 1.15 | \n \n \n 1.16 | \n \n \n 1.16 | \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 1.01 | \n \n \n 1.07 | \n \n \n 1.13 | \n \n \n 1.19 | \n \n \n 1.19 | \n \n \n 1.20 | \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 0.82 | \n \n \n 0.83 | \n \n \n 0.84 | \n \n \n 1.06 | \n \n \n 1.14 | \n \n \n 1.31 | \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 0.91 | \n \n \n 0.94 | \n \n \n 0.96 | \n \n \n 1.11 | \n \n \n 1.17 | \n \n \n 1.28 | \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 0.85 | \n \n \n 0.88 | \n \n \n 0.91 | \n \n \n 1.07 | \n \n \n 1.13 | \n \n \n 1.27 | \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 0.36 | \n \n \n 0.51 | \n \n \n 0.64 | \n \n \n 0.64 | \n \n \n 0.63 | \n \n \n 0.65 | \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 0.76 | \n \n \n 0.76 | \n \n \n 0.76 | \n \n \n 0.76 | \n \n \n 0.76 | \n \n \n 0.72 | \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 0.45 | \n \n \n 0.45 | \n \n \n 0.45 | \n \n \n 0.45 | \n \n \n 0.45 | \n \n \n 0.44 | \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
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 arise from non-financial risk as it fulfils insurance contracts.
These risks 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 assumptions used to project future cash flows due to misestimation (parameter risk), and the risk of random fluctuations around the true estimates (contagion risk).
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 ceded reinsurance, and insurance contracts classified as held for sale.
Aegon generally applies a simplified confidence-interval technique to estimates the risk adjustment for non-financial risk, using an 80th percentile confidence level. Under this approach, a probability distribution is assumed for each particular risk, and the amount above the expected present value of future cash flows is determined using a shock factor. The\u00a0impacts 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\u00a075th percentile. Regardless of the technique applied, the confidence interval is computed across the entire product lifetime in\u00a0order to fully reflect the risk.
\nActuarial assumptions, excluding expenses, are reviewed in the second quarter for the United States and TLB, and in the fourth quarter for all other business units, while expense assumptions for all units are reviewed in the fourth quarter. These reviews are based on historical experience, observable market data, including transactions such as acquisitions and reinsurance, anticipated trends, and legislative changes. Similarly, the models and systems used to determine our liabilities and reinsurance assets are reviewed periodically and updated\u00a0as needed.
At the end of 2025, non-financial assumption changes mainly in Aegon\u2019s business in Americas, United Kingdom, and TLB resulted in an adverse pre-tax impact of EUR 515 million. Of this amount, EUR 265 million was absorbed by the CSM, EUR 177 million was recognized in the income statement, and EUR 73 million was recognized in OCI.
Of the total impact, Americas and TLB resulted in EUR 333 million, mainly due to strengthening of policyholder behavior assumptions to address adverse experience in Financial Assets, driven by the TLB Universal Life block reinsured to Transamerica, Variable Annuities and Fixed Annuities. In Protection Solutions, adverse assumption updates were driven by the workplace business, in part related to Medicare Supplement product addressing an industry-wide trend. These unfavorable underwriting assumptions was partly offset by favorable expense assumption updates in Individual Life. United Kingdom resulted in EUR 180 million, mainly from updated persistency assumptions, reflecting the ongoing commercial pressures in\u00a0the Platform and Traditional Products business.
Financial (economic) assumption updates resulted in a favorable impact of EUR 269 million, recognized in OCI, attributable to\u00a0a periodic adjustment of the illiquidity premium to align with Aegon\u2019s latest reinvestment strategy.
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 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 (excluded from insurance revenue); and the adjustment for non-performance risk that is applied to reinsurance contracts held.
\nOften, a single metric can be defined that captures multiple services under one contract. Aegon uses\u00a0different approaches to assess the relative weights of services benefits. In some cases, the weighting is\u00a0determined directly from the composition of the benefits under the contract. For example, for a life insurance product with an account value that is 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 which are the amounts repayable to policyholders, 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, the partial withdrawal, or the transfer of an insurance policy to another insurer. The investment component is determined net of any penalty or similar charges.
\nThe reinsurer's\u00a0nonperformance risk is based on Aegon\u2019s credit exposure, net of collateral, and the perceived counterparty default risk. In assessing credit exposure, Aegon takes into account treaty provisions for non-performance, such as the automatic recapture of the reinsured business on the reinsurer's default.
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\u00a0table\u00a0below\u00a0presents\u00a0information\u00a0on the valuation techniques and significant unobservable inputs used in recurring fair value measurements of\u00a0certain Level III financial instruments.
During 2024 and 2025, no valuation techniques or significant unobservable inputs were applied in the measurement of financial liabilities.
| \n | \n\n \n Valuation technique 1 | \n \n \n Significant unobservable input 2 | \n \n \n December 31, 2025 | \n \n \n \n \n Range (weighted average) \n | \n \n \n December 31, 2024 | \n \n \n \n \n Range (weighted average) \n | \n
| \n \n Financial assets | \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 5 | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 449 | \n \n \n n.a. | \n \n \n 688 | \n \n \n n.a. | \n
| \n | \n\n \n Discounted cash flow | \n \n \n Constant Prepayment Rate | \n \n \n - | \n \n \n - | \n \n \n 28 | \n \n \n 21.11% | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 79 | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 528 | \n \n | \n\n \n 799 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n Other | \n \n \n n.a. | \n \n \n 1 | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n \n Total FVOCI | \n \n | \n\n | \n\n \n 533 | \n \n | \n\n \n 799 | \n \n | \n
| \n | \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 50 | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n
| \n | \n\n \n Broker quote | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n \n \n 3 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 96 | \n \n \n n.a. | \n \n \n 94 | \n \n \n n.a. | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 14 | \n \n \n n.a. | \n \n \n 13 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 164 | \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 | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 3,220 | \n \n | \n\n \n 3,633 | \n \n | \n
| \n \n Tax credit investments | \n \n \n Discounted cash flow | \n \n \n Discount rate | \n \n \n 766 | \n \n \n 6.71% | \n \n \n 823 | \n \n \n 6.72% | \n
| \n \n Loans | \n \n \n Other | \n \n \n n.a. | \n \n \n 82 | \n \n | \n\n \n 82 | \n \n | \n
| \n \n Total FVPL | \n \n | \n\n | \n\n \n 4,068 | \n \n | \n\n \n 4,538 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets 3 | \n \n | \n\n | \n\n \n 4,765 | \n \n | \n\n \n 5,530 | \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:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22252m14191p": { "value": "\nThe consolidated financial statements have been prepared on a going concern basis, on the assumption that the Company will continue in operation for the foreseeable future. From\u00a0December 31, 2025, management assessed the following main areas: financial performance; capital adequacy; financial position and flexibility; liquidity; ability to\u00a0access capital markets; leverage ratios and the level of Cash Capital at Holding, and concluded that the going concern assumption for Aegon is appropriate. For\u00a0further details, see note 37 Capital management and solvency.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21462m13912p": { "value": "\nFair value is defined as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. 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
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 the\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 valuation techniques for which any significant input is not based on observable market data.
The degree of judgment in measuring fair value inversely correlates with the level of observable valuation inputs. Aegon prioritizes observable inputs and minimizes unobservable ones. Financial instruments with quoted prices in active markets require less judgment, while those without quoted prices need more judgment and use models or pricing techniques.
Assets and liabilities are categorized within the fair value hierarchy based on the lowest significant input. An active market provides ongoing pricing information, while inactive markets require assurance that transaction prices reflect fair value or\u00a0that\u00a0they require adjustments to reflect fair value.
Most valuation techniques use observable market data, ensuring high reliability. However, some assets and liabilities rely on\u00a0unobservable inputs, making their fair value more judgmental. Instruments classified as level III are significantly influenced by\u00a0unobservable inputs, meaning little current market data is available. Aegon\u2019s valuation techniques align with market participants' approaches, but different methodologies could yield different fair value estimates.
Aegon assigns fair value levels to instruments based on type and price source, periodically reviewing this logic to adapt to\u00a0the\u00a0current market environment.
For further details on fair value hierarchy and fair value measurement, refer to note 38 Fair value.
The estimated fair values of Aegon\u2019s assets and liabilities reflect the amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
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\u00a0prices) 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. An active market involves regular, arm\u2019s length transactions, and fair value excludes forced or distressed sales. If no active market exists or quoted market prices are not available, fair value is estimated using observable market data, such as external quotes and valuation techniques.
Unobservable inputs reflect Aegon\u2019s assumptions about market participants\u2019 pricing, including risk, based on the best available information.
Aegon maintains oversight of financial instrument valuation through a structure that ensures proper segregation of duties. Senior management, independent of investment functions, oversees valuation controls and reporting. For externally sourced fair values, independent validation is used to confirm inputs. Details of these validation processes follow.
Asset and liability valuation follows a pricing hierarchy to ensure a controlled, consistent process that relies on reliable sources with minimal manual input. Depending on asset type, the hierarchy begins with market index prices and proceeds to\u00a0third-party pricing services or brokers.
\nThe description of Aegon's methods of determining fair value and valuation techniques is 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 is the best approximation of 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.
For unquoted shares, fair value may be estimated using alternative methods, such as analyzing price/earnings or price/cash\u00a0flow\u00a0ratios\u00a0of\u00a0comparable\u00a0quoted\u00a0companies.\u00a0Valuations\u00a0are\u00a0adjusted\u00a0for\u00a0company-specific\u00a0factors\u00a0and\u00a0the\u00a0inherent\u00a0illiquidity\u00a0of unquoted investments, typically based on available market data. Management also considers\u00a0factors such as current performance, changes in market outlook, and the third-party financing environment.
Included in this category are shares in a Federal Home Loan Bank (FHLB) for an amount of EUR 36 million (2024: EUR 77 million), which are reported as part of the line-item Net asset value. An 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. Aegon values debt securities using quoted market prices when available. Prices are first sourced from indices and third-party services. If unavailable, broker quotes, mostly non-binding, are used. Each quote is reviewed by Aegon to ensure it reflects the most appropriate estimate of fair value.
When broker quotes are unavailable, 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 third-party valuation methodologies, Aegon reviews and monitors the relevant documentation from pricing services. Any methodology changes are noted and assessed for reasonableness. Aegon also conducts in-depth, sample-based reviews of prices received, aiming to corroborate assumptions, inputs, and methodologies against documented standards. Only providers with strong market presence and proven expertise are used.
Third-party pricing services often base valuations on recent trades of identical or similar securities, adjusting for time elapsed and market data. When recent trades are unavailable, they apply modeling techniques using expected cash flows and market-based discount rates.
Aegon periodically analyzes inputs from pricing services and brokers to ensure they yield reasonable fair value estimates. Asset and valuation specialists consider both qualitative and quantitative factors, including recent transactions in similar debt securities, pricing trends, and relevant market events. Additional controls include validation checks such as exception reports for significant price changes, stale prices, or unpriced securities. Back testing is also performed by comparing sample trade prices with those used in financial reporting, with significant variances investigated.
Credit ratings are considered in assessing security risk but are not solely relied upon. Aegon uses an internal process based on market-observable inputs to form its risk view.
Private placement securities (classified as fair value through OCI or profit or loss) are valued using matrix pricing from a third-party provider, based on weighted average life, credit rating, and sector. Asset specialists review the matrix monthly, comparing spreads to market data. Other valuation inputs include coupon rate, interest rate curves, and liquidity premiums, which are based on recent private placement transactions. The liquidity premium\u2019s impact on 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 monthly. If Aegon must use internal valuation models, key inputs are based on relative value analyses that compare instruments with similar collateral and risk profiles. Market-standard models may be used to reflect each transaction\u2019s collateral composition and cash flow structure. The most significant unobservable input is the liquidity premium embedded in the discount rate.
\nCorporate bond valuations are monitored and reviewed monthly. The pricing hierarchy depends on the ability to corroborate market prices. When unavailable, valuations are based on discounted cash flow using an internally calculated yield, which includes a credit spread over an observable benchmark. The credit spread combines observable and unobservable inputs. Aegon begins with a credit spread from a similar bond by the same issuer and adjusts it for unobservable factors such as subordination, liquidity, and maturity. In 2025, no corporate bonds met the threshold for internal modeling.
\nWhen available, Aegon uses quoted market prices in active markets to determine the fair value of its government debt investments. When Aegon cannot use quoted market prices, it uses market prices from indices or quotes from third-party pricing services or brokers.
\nThe fair value of assets maturing within a year is 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\u00a0not market observable.
\nThe Level III fair value of tax credit investments is determined using a discounted cash flow approach. This takes into account projected capital contributions, distributions, future tax credits, and tax benefits from operating losses. The present value of these cash flows is calculated using a discount rate, generally based on the timing and amounts of investment outflows and tax-related inflows. These inputs are unobservable. The discount rate used was 6.7% (December 31, 2024: 6.7%).
\nFair values of non-quoted investment funds are determined by management based on information from fund managers. Aegon\u00a0reviews these valuations monthly, performing analytical and trend analyses to ensure appropriateness. The net asset value is considered the best approximation of fair value.
\nFor private loans, fixed-interest mortgage loans, and other originated loans, fair value for disclosure is estimated by discounting expected cash flows at current market rates for instruments with similar yields and maturities. For fixed interest mortgage loans, the rate is adjusted for expenses, prepayment rates, lapse assumptions (unobservable), and liquidity and credit risk (observable). Increases in expense spread or prepayment assumptions reduce fair value.
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.
\nWhen quoted market prices are unavailable, alternative valuation techniques, such as option pricing or stochastic modeling, are used. The valuation techniques incorporate all factors a typical market participant would consider and, when available, are based on observable market data. 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, such as futures and certain options, are based on quoted market prices. OTC derivatives are valued using pricing models that estimate the net present value of future cash flows, incorporating observed prices from exchange-traded and OTC trades, or external pricing services. Most valuations rely on swap and volatility matrices built from current market data. Option pricing uses standard models and market levels. Complex or illiquid instruments are priced using internal models or independent third parties, with extrapolation applied for long-dated illiquid contracts to estimate unobservable inputs.
Some OTC derivatives are longevity derivatives, with payouts linked to public mortality tables. These are valued at the present value of expected payouts plus a risk margin. Expected payouts are based on the best-estimate mortality developments, while the risk margin is derived by stressing these estimates and applying a cost-of-capital approach. Depending on the swap\u2019s duration, the most significant unobservable input is either projected mortality or the discount rate.
Aegon normally mitigates counterparty credit risk in derivative contracts by entering into collateral agreements where practical and by using 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 real estate investments and real estate held for own use are conducted by independent external appraisers at least every three to five years and reviewed annually by qualified internal appraisers to ensure fair value at the reporting date. While appraisals vary by local market, they follow standards such as the International Valuation Standards, the Uniform Standards of Professional Appraisal Practice, or Investment Property Databank guidelines. Valuations are primarily based on active market prices, adjusted for differences in property characteristics. When market data is unavailable, other methods are used, considering net earning power, comparable sales, or replacement cost. Discount rates reflect asset-specific cash flow risks, while capitalization rates represent the relationship between net operating income and property value. For own-use properties, appraisers estimate the present value of potential rental income.
\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). To determine the fair value of these instruments, the IFRS level hierarchy is used. The preferred method for measuring the fair value of fair value option bonds is the quoted price (Level I). In cases where markets are less liquid or quoted prices are unavailable, Aegon\u2019s valuation policy uses a pricing hierarchy that prioritizes publicly available prices sourced 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 carried at fair value (if designated through profit or loss) or amortized cost, with fair value disclosed in the notes. These contracts are not quoted in active markets, and fair values are determined using valuation techniques such as discounted cash flow, stochastic modeling, or unit-linked pricing. All models are validated and calibrated, taking into account factors such as time value, volatility, policyholder behavior, servicing costs, and comparable instruments.
For complex products, stochastic techniques are used to model dynamic cash flows under various market scenarios. Inputs include expected market returns, volatility, return correlations, discount rates, and actuarial assumptions.
Expected returns are based on risk-free rates, including Secured Overnight Financing Rate (SOFR) swap rates, associated forward rates, the Overnight Index Swap (OIS) curve, or local government bond yields. Market volatility assumptions for each index are derived from implied volatility data and/or historical performance. Correlations between indices are based on observed returns and their interrelationships over several years. Present values of projected cash flows are calculated using current risk-free spot rates. Customer behavior assumptions, such as lapses, are aligned with those used for insurance liability valuations.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21463m13913p": { "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 various risks, primarily from financial market fluctuations (for example, foreign currency, interest rate, credit, and equity risks) that impact investment values and product liabilities. Additional risks include insurance-related factors such as changes in mortality, morbidity, bond credit spreads, and liquidity premiums, detailed in note\u00a029 Insurance contracts. Risk is managed locally where business occurs, guided by Group-level principles and policies. Aegon's integrated approach to risk\u00a0management involves similar measurement of risk and scope of risk coverage to enable aggregation of the Group's risk\u00a0position.
To manage financial market risks, products are priced using a market-consistent framework, and asset liability management (ALM) programs seek to ensure prudent long-term investment to policyholder. ALM techniques across the Group vary in 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 risk exposure, Aegon has both group-wide and specific local risk policies to handle 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 guide and set limits for the aggregated product-level programs. Significant or complex ALM strategies are approved at\u00a0group level, and all programs are\u00a0subject to Group Risk oversight.
Together with the ICRP, other ERM policies govern concentration risk, liquidity risk, the use of derivatives and securities lending and repos. Aegon\u2019s extensive use of derivatives can lead to significant collateral calls depending on market conditions. Liquidity is managed at the legal entity, with central coordination by Aegon Ltd. 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\u2019s Derivative Use Policy establishes the requirements for the control, authorization, execution and monitoring requirements of derivatives. It\u00a0also stipulates the necessary mitigation of credit risk through derivatives management tools. For derivatives, counterparty credit risk is typically mitigated through collateral posting under credit support annexes or central clearing houses.
As part of its risk management programs, Aegon takes inventory of its current risk position across risk categories and\u00a0measures the sensitivity of net result and shareholders' equity under both deterministic and stochastic scenarios. Models,\u00a0scenarios, and assumptions are regularly reviewed and updated as needed.
Aegon\u2019s sensitivity analyses are presented throughout this section to show the estimated impact of various scenarios on CSM, net result, and shareholders\u2019 equity. It also shows how the tested shock could affect management\u2019s key accounting estimates and judgments under Aegon\u2019s policies. 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 changes to policies and procedures are not considered.
Market-consistent assumptions underlying the measurement of non-listed assets and liabilities are adjusted to reflect the\u00a0shock tested. The\u00a0shock 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 a risk factor is reasonably likely to change,
long-term assumptions will generally not be revised unless there is evidence that the change is permanent.
The sensitivities do not reflect what the net result would have been if risk variables had differed, as they are based on exposures on the reporting date, not actual events during the year. Nor are they intended to predict Aegon\u2019s future shareholders\u2019 equity or earnings, as the analysis excludes future new business and does not consider all potential management responses to financial environment changes, such as investment portfolio reallocations or changes to premiums and crediting rates. Furthermore, the\u00a0results of the analyses cannot be extrapolated or interpolated to wider variations, as effects do not tend to be\u00a0linear.
Concentration risk for financial risks is measured and managed at the following levels:
Concentration by risk type: Risk exposures are measured by risk type as part of Aegon\u2019s internal economic framework. A\u00a0risk\u00a0tolerance framework is in place which sets risk limits per risk type to target the 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 into 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 carried out by the insurance operating companies.
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\u00a0note 4.2 Credit risk\u00a0note 4.3 Market risk\u00a0and in\u00a0note 4.4 Liquidity risk.
\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 has policies and procedures to manage credit, concentration, and counterparty risks across all material businesses with credit exposure, including bonds, loans, cash and equivalents, collateralized assets, reinsurance assets, and fair value assets. The Group uses risk gradings aligned with major credit rating agencies and applies internal gradings for specific portfolios, such as residential mortgages, to assess the probability of default.
Credit grades are calibrated so that default risk increases exponentially with each higher risk grade. For\u00a0example, the difference in Probability of Default (PD) between the AAA and A rating grades is lower than between the BBB and B rating grades.
\nAs premiums and deposits are received, Aegon invests these funds to meet future policyholder obligations. For assets backing insurance liabilities under the general model and the premium allocation approach, as well as other \"free\" assets, Aegon typically bears the investment risk, including principal and interest.
Aegon\u00a0is exposed to credit risk on its fixed-income portfolio (debt securities, mortgages, private placements), over-the-counter derivatives, and reinsurance contracts. Some issuers have defaulted due to bankruptcy, liquidity issues, economic or real estate downturns, operational failure, or fraud. During financial downturns, Aegon can incur defaults or other value declines, which could materially impact Aegon\u2019s business and financial results and condition adversely.
The estimates of best estimate liability for (re)insurance contract assets represent Aegon\u2019s maximum exposure to credit risk from these assets. Please see the cash flow information in note 29\u00a0Insurance contracts.
The following table contains an analysis of Aegon\u2019s maximum credit risk exposure from financial assets.\u00a0Please\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\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 Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 56,202 | \n \n \n - | \n \n \n - | \n \n \n 53 | \n \n \n - | \n \n \n - | \n \n \n 53 | \n \n \n - | \n \n \n 56,149 | \n
| \n \n Money market and other short-term investments | \n \n \n 5,964 | \n \n \n - | \n \n \n 289 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 289 | \n \n \n 22 | \n \n \n 5,696 | \n
| \n \n Loans | \n \n \n 9,787 | \n \n \n 112 | \n \n \n - | \n \n \n 23 | \n \n \n 21,460 | \n \n \n - | \n \n \n 21,594 | \n \n \n 11,808 | \n \n \n 1 | \n
| \n \n Unconsolidated investment funds | \n \n \n 190,671 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 190,671 | \n
| \n \n Deposits with financial institutes | \n \n \n 1,727 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,727 | \n
| \n \n Other investments | \n \n \n 4,749 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,749 | \n
| \n \n Derivative assets | \n \n \n 485 | \n \n \n 124 | \n \n \n 513 | \n \n \n - | \n \n \n - | \n \n \n 213 | \n \n \n 850 | \n \n \n 406 | \n \n \n 42 | \n
| \n \n Reinsurance assets | \n \n \n 17,153 | \n \n \n - | \n \n \n 15,363 | \n \n \n 731 | \n \n \n - | \n \n \n - | \n \n \n 16,093 | \n \n \n - | \n \n \n 1,060 | \n
| \n \n On December 31, 2025 | \n \n \n 286,739 | \n \n \n 236 | \n \n \n 16,165 | \n \n \n 807 | \n \n \n 21,460 | \n \n \n 213 | \n \n \n 38,880 | \n \n \n 12,236 | \n \n \n 260,095 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 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 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 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 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 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 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 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 14,872 | \n \n \n - | \n \n \n 1,149 | \n
| \n \n On December 31, 2024 | \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 40,127 | \n \n \n 13,462 | \n \n \n 267,932 | \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 money market and short-term investments relates 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.
\nReal estate collateral for mortgages includes both residential and commercial properties. For commercial mortgage loans in Aegon Americas, collateral is measured at fair value. At least annually, the fair value of each individual property pledged as collateral is estimated. At loan origination, an external appraisal is used to estimate the property's value. In subsequent years, internal valuations are conducted using professionally accepted methods by accredited personnel. International valuation standards are used, which consider key assumptions such as replacement cost, income-generating potential, and recent sales of comparable properties. Valuations are primarily supported by market evidence.
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.
\nA significant portion of instruments have been designated as FVPL. On December 31, 2025, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 2,048 million (December 2024: EUR\u00a02,337 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following table presents changes in\u00a0fair value attributable to changes in credit risk, recognized for these investments:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n | \n\n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value during the year | \n \n \n 1 | \n \n \n 7 | \n \n \n 8 | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value | \n \n \n - | \n \n \n 45 | \n \n \n 45 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \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 method reasonably approximates credit risk impact, as fixed income valuations are primarily influenced by interest rates and credit spreads. Thus,\u00a0isolating non-credit factors allows for an estimate of credit-related fair value changes.
\nThe master netting agreements column in the table pertains to derivative liability positions that are used in Aegon's credit risk management. The offset in the master netting agreements column includes balances for which there is a legally enforceable right of offset, but no intention to settle them 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 for the reinsurance assets includes assets held in trust by the reinsurer for Aegon's benefit. Trust assets can be accessed to pay policyholder benefits if reinsurers fail to perform under their contracts. 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.
\nOn December 31, 2025, the Group held no collateral that was obtained during the year (EUR 0 in 2024) 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 non-cash collateral for its own operations.
\nAegon manages credit risk by counterparty, sector, and asset class, including cash. Credit risk in derivative contracts is typically mitigated through credit support agreements and ISDA master netting agreements across most of Aegon's legal entities, enabling offsetting of exposures. Main counterparties are investment banks, generally rated \u201cA\u201d or higher. These agreements define collateral thresholds, with most collateralized transactions involving interest rate, equity, currency, and credit swaps. Collateral, mainly in USD and EUR cash, must meet high-quality standards. No derivative counterparty defaults occurred in the past three years. Credit risk under master netting agreements is offset only when liabilities are settled after asset realization. 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 the 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 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 the group level and the individual country units. If an exposure exceeds the stated limit, it must be reduced to the limit for the country unit and rating category as soon as possible. Exceptions to these limits may be made only with explicit approval from Aegon's\u00a0Group Risk and Capital Committee (GRCC). The policy is reviewed regularly.
To hedge inflation risk in products offered to policyholders, Aegon invests in instruments linked to inflation, significantly reducing net exposure.
\nSince Aegon changed its policies in 2025, Group limits are denominated in US Dollar instead of Euro. Aegon group level long-term counterparty exposure limits are as follows:
| \n \n Group limits per credit rating | \n \n \n 2025 USD million | \n \n \n 2024 EUR million | \n
| \n \n AAA | \n \n \n 750 | \n \n \n 900 | \n
| \n \n AA | \n \n \n 750 | \n \n \n 900 | \n
| \n \n A | \n \n \n 575 | \n \n \n 675 | \n
| \n \n BBB | \n \n \n 375 | \n \n \n 450 | \n
| \n \n BB | \n \n \n 225 | \n \n \n 250 | \n
| \n \n B | \n \n \n 110 | \n \n \n 125 | \n
| \n \n CCC or lower | \n \n \n 45 | \n \n \n 50 | \n
The ratings distribution of Aegon\u2019s general account portfolios \u2014 excluding reinsurance assets \u2014 is shown in the following table, categorized by rating and split by assets measured at fair value and amortized cost. Aegon applies a composite rating based on external ratings from S&P, Moody\u2019s, Fitch, and the National Association of Insurance Commissioners (NAIC for U.S. assets), along with internal ratings. The lower of the external and internal ratings is used.
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n 2025 Total 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 Carrying value | \n
| \n \n AAA | \n \n \n 847 | \n \n \n 5,625 | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 40 | \n \n \n - | \n \n \n 127 | \n \n \n 847 | \n \n \n 5,822 | \n \n \n 6,669 | \n
| \n \n AA | \n \n \n 4,023 | \n \n \n 7,916 | \n \n \n - | \n \n \n 416 | \n \n \n - | \n \n \n 130 | \n \n \n - | \n \n \n - | \n \n \n 4,023 | \n \n \n 8,462 | \n \n \n 12,485 | \n
| \n \n A | \n \n \n 4,319 | \n \n \n 18,580 | \n \n \n - | \n \n \n 217 | \n \n \n 1 | \n \n \n 694 | \n \n \n 24 | \n \n \n - | \n \n \n 4,355 | \n \n \n 19,491 | \n \n \n 23,846 | \n
| \n \n BBB | \n \n \n 423 | \n \n \n 18,406 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 346 | \n \n \n 3 | \n \n \n - | \n \n \n 426 | \n \n \n 18,756 | \n \n \n 19,182 | \n
| \n \n BB | \n \n \n - | \n \n \n 984 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 22 | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n \n \n 1,007 | \n \n \n 1,007 | \n
| \n \n B | \n \n \n 93 | \n \n \n 262 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 8 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n 277 | \n \n \n 370 | \n
| \n \n CCC or lower | \n \n \n - | \n \n \n 569 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 8 | \n \n \n - | \n \n \n 8 | \n \n \n 570 | \n \n \n 577 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 4,349 | \n \n \n - | \n \n \n 744 | \n \n \n - | \n \n \n 24 | \n \n \n - | \n \n \n 68 | \n \n \n - | \n \n \n 5,189 | \n \n \n 5,189 | \n
| \n \n Total | \n \n \n 9,704 | \n \n \n 56,690 | \n \n \n - | \n \n \n 1,420 | \n \n \n 1 | \n \n \n 1,266 | \n \n \n 36 | \n \n \n 194 | \n \n \n 9,752 | \n \n \n 59,574 | \n \n \n 69,326 | \n
| \n \n ECL on financial assets | \n \n \n \n \n (33) \n | \n \n \n \n \n (340) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n \n \n (347) \n | \n \n \n \n \n (380) \n | \n
| \n \n On December 31, 2025 | \n \n \n 9,671 | \n \n \n 56,690 | \n \n \n - | \n \n \n 1,420 | \n \n \n 1 | \n \n \n 1,266 | \n \n \n 36 | \n \n \n 194 | \n \n \n 9,719 | \n \n \n 59,574 | \n \n \n 69,293 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n||
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 Total 1 | \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
The following table shows the credit quality of the reinsurance contracts:
| \n \n Carrying value | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n - | \n \n \n - | \n
| \n \n AA | \n \n \n 1,008 | \n \n \n 1,087 | \n
| \n \n A | \n \n \n 14,832 | \n \n \n 14,041 | \n
| \n \n Below A | \n \n \n 208 | \n \n \n 3 | \n
| \n \n Not rated | \n \n \n 910 | \n \n \n 587 | \n
| \n \n On December 31 | \n \n \n 16,958 | \n \n \n 15,719 | \n
The following tables present specific credit risk concentration information for general account financial assets.
| \n \n Debt securities and | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n 2025 Total 1 | \n \n \n Of which past due and/or impaired | \n
| \n \n \n \n Residential mortgage-backed securities (RMBSs) \n | \n \n \n 827 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 827 | \n \n \n \n \n (16) \n | \n
| \n \n \n \n Commercial mortgage-backed securities (CMBSs) \n | \n \n \n 2,419 | \n \n \n 26 | \n \n \n 34 | \n \n \n - | \n \n \n 2,479 | \n \n \n \n \n (40) \n | \n
| \n \n \n \n Asset-backed securities (ABSs) \n | \n \n \n 616 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 617 | \n \n \n \n \n (1) \n | \n
| \n \n ABSs \u2013 Other | \n \n \n 5,820 | \n \n \n 43 | \n \n \n 26 | \n \n \n 102 | \n \n \n 5,991 | \n \n \n \n \n (29) \n | \n
| \n \n Financial - Banking | \n \n \n 3,261 | \n \n \n 165 | \n \n \n 190 | \n \n \n - | \n \n \n 3,616 | \n \n \n \n \n (15) \n | \n
| \n \n Financial - Other | \n \n \n 9,831 | \n \n \n 54 | \n \n \n 158 | \n \n \n 100 | \n \n \n 10,144 | \n \n \n \n \n (53) \n | \n
| \n \n Capital goods and other industry | \n \n \n 3,273 | \n \n \n 18 | \n \n \n 76 | \n \n \n - | \n \n \n 3,366 | \n \n \n \n \n (41) \n | \n
| \n \n Communications & Technology | \n \n \n 3,879 | \n \n \n 11 | \n \n \n 77 | \n \n \n - | \n \n \n 3,967 | \n \n \n \n \n (44) \n | \n
| \n \n Consumer cyclical | \n \n \n 3,354 | \n \n \n 9 | \n \n \n 100 | \n \n \n - | \n \n \n 3,463 | \n \n \n \n \n (35) \n | \n
| \n \n Consumer non-cyclical | \n \n \n 5,062 | \n \n \n 38 | \n \n \n 116 | \n \n \n - | \n \n \n 5,216 | \n \n \n \n \n (33) \n | \n
| \n \n Energy | \n \n \n 2,325 | \n \n \n 10 | \n \n \n 41 | \n \n \n - | \n \n \n 2,376 | \n \n \n \n \n (12) \n | \n
| \n \n Transportation | \n \n \n 1,658 | \n \n \n 4 | \n \n \n 20 | \n \n \n - | \n \n \n 1,682 | \n \n \n \n \n (6) \n | \n
| \n \n Utility | \n \n \n 3,902 | \n \n \n 2 | \n \n \n 37 | \n \n \n - | \n \n \n 3,941 | \n \n \n \n \n (10) \n | \n
| \n \n Government bonds | \n \n \n 5,762 | \n \n \n 302 | \n \n \n 293 | \n \n \n 17 | \n \n \n 6,374 | \n \n \n \n \n (13) \n | \n
| \n \n On December 31, 2025 | \n \n \n 51,990 | \n \n \n 682 | \n \n \n 1,169 | \n \n \n 220 | \n \n \n 54,060 | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 Total 1 | \n \n | \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 \n \n Asset-backed securities (ABSs) \n | \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 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 2025 | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n 2024 | \n
| \n \n United States | \n \n \n 5,017 | \n \n \n 2 | \n \n \n 64 | \n \n \n - | \n \n \n 5,084 | \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 - | \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 257 | \n \n \n - | \n \n \n 17 | \n \n \n 275 | \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 9 | \n \n \n - | \n \n \n 9 | \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 3 | \n \n \n - | \n \n \n 3 | \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 18 | \n \n \n 8 | \n \n \n - | \n \n \n 25 | \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 19 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 21 | \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 63 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 63 | \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 6 | \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 188 | \n \n \n - | \n \n \n 188 | \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 76 | \n \n \n - | \n \n \n 8 | \n \n \n - | \n \n \n 84 | \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 586 | \n \n \n 19 | \n \n \n 7 | \n \n \n - | \n \n \n 612 | \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 | \n \n \n 5,762 | \n \n \n 302 | \n \n \n 293 | \n \n \n 17 | \n \n \n 6,374 | \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 rating * | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n 2025 | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n 160 | \n \n \n 536 | \n \n \n 3,407 | \n \n \n 1,708 | \n \n \n 5,811 | \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 4,754 | \n \n \n 2,413 | \n \n \n 1,200 | \n \n \n - | \n \n \n 8,367 | \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 777 | \n \n \n 14,804 | \n \n \n 3,573 | \n \n \n - | \n \n \n 19,154 | \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 402 | \n \n \n 17,264 | \n \n \n 1,059 | \n \n \n - | \n \n \n 18,725 | \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 247 | \n \n \n 672 | \n \n \n 83 | \n \n \n - | \n \n \n 1,002 | \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 19 | \n \n \n 171 | \n \n \n 154 | \n \n \n - | \n \n \n 345 | \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 15 | \n \n \n 103 | \n \n \n 439 | \n \n \n - | \n \n \n 557 | \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 94 | \n \n \n 94 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 83 | \n \n \n 83 | \n
| \n \n On December 31 | \n \n \n 6,374 | \n \n \n 35,963 | \n \n \n 9,914 | \n \n \n 1,802 | \n \n \n 54,054 | \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 Mortgage loans | \n \n \n Americas | \n \n \n International | \n \n \n 2025 | \n \n \n Of which past due and / or impaired | \n \n \n Americas | \n \n \n International | \n \n \n 2024 | \n \n \n Of which past due and/or impaired | \n
| \n \n Agricultural | \n \n \n 40 | \n \n \n - | \n \n \n 40 | \n \n \n \n \n (1) \n | \n \n \n 47 | \n \n \n - | \n \n \n 47 | \n \n \n - | \n
| \n \n Apartment | \n \n \n 4,954 | \n \n \n - | \n \n \n 4,954 | \n \n \n \n \n (5) \n | \n \n \n 5,618 | \n \n \n - | \n \n \n 5,618 | \n \n \n \n \n (8) \n | \n
| \n \n Industrial | \n \n \n 455 | \n \n \n - | \n \n \n 455 | \n \n \n - | \n \n \n 474 | \n \n \n - | \n \n \n 474 | \n \n \n - | \n
| \n \n Office | \n \n \n 1,105 | \n \n \n - | \n \n \n 1,105 | \n \n \n \n \n (27) \n | \n \n \n 1,270 | \n \n \n - | \n \n \n 1,270 | \n \n \n \n \n (109) \n | \n
| \n \n Retail | \n \n \n 1,257 | \n \n \n - | \n \n \n 1,257 | \n \n \n - | \n \n \n 1,384 | \n \n \n - | \n \n \n 1,384 | \n \n \n \n \n (1) \n | \n
| \n \n Other commercial | \n \n \n 1,942 | \n \n \n 1 | \n \n \n 1,943 | \n \n \n - | \n \n \n 1,885 | \n \n \n 1 | \n \n \n 1,886 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 9,753 | \n \n \n 1 | \n \n \n 9,754 | \n \n \n \n \n (33) \n | \n \n \n 10,679 | \n \n \n 1 | \n \n \n 10,680 | \n \n \n \n \n (118) \n | \n
Aegon\u2019s investments in unconsolidated structured entities \u2014 such as RMBSs, CMBSs, ABSs, and investment funds \u2014 are reported under \u201cInvestments\u201d on the statement of financial position. These interests are basic interests. Aegon holds no related loans, derivatives, guarantees, or other interests relating to these investments.
For RMBSs, CMBSs, and ABSs, Aegon\u2019s maximum exposure to loss equals the carrying amount, as shown in the credit risk concentration table for debt securities and money market investments. To manage credit risk, Aegon primarily invests in senior notes of these instruments. The portfolios are broadly diversified by issuer, resulting in only non-controlling interests in\u00a0individual unconsolidated structured entities. Additionally, Aegon does not originate these investments.
As the collateral manager of collateralized loan obligations (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 in the form of participation in the subordinated tranches of the structure, which concentrate credit risk on the underlying assets of the CLO. Aegon\u2019s maximum exposure to credit risk is the carrying amount of these investments, which was EUR\u00a0190,671 million on December 31, 2025 (2024: EUR 192,775 million).
Except for commitments, such as future purchases in investment funds, as disclosed in note 39 Commitments and contingencies,\u00a0Aegon did not provide, nor is it required to provide financial or other support to unconsolidated structured entities. Aegon also has no intention to offer such support to entities in which it currently holds or previously held an interest.
For RMBSs, CMBSs, and ABSs\u00a0in which Aegon has an interest at the 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\u00a0financial position of Aegon's interests in RMBSs, CMBSs, and ABSs.
| \n | \n\n | \n\n \n 2025 | \n \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n Interest income | \n \n \n Gains/(losses) on sale | \n \n \n Total Income | \n \n \n Investments | \n \n \n Interest income | \n \n \n Gains/(losses) on sale | \n \n \n Total Income | \n \n \n Investments | \n
| \n \n RMBSs | \n \n \n 57 | \n \n \n 7 | \n \n \n 64 | \n \n \n 827 | \n \n \n 58 | \n \n \n \n \n (13) \n | \n \n \n 45 | \n \n \n 684 | \n
| \n \n CMBSs | \n \n \n 115 | \n \n \n 87 | \n \n \n 202 | \n \n \n 2,479 | \n \n \n 97 | \n \n \n 98 | \n \n \n 194 | \n \n \n 2,582 | \n
| \n \n ABSs | \n \n \n 33 | \n \n \n - | \n \n \n 33 | \n \n \n 617 | \n \n \n 38 | \n \n \n 12 | \n \n \n 50 | \n \n \n 585 | \n
| \n \n ABSs - Other | \n \n \n 296 | \n \n \n 114 | \n \n \n 410 | \n \n \n 5,991 | \n \n \n 206 | \n \n \n 58 | \n \n \n 264 | \n \n \n 4,952 | \n
| \n \n Total | \n \n \n 501 | \n \n \n 208 | \n \n \n 708 | \n \n \n 9,914 | \n \n \n 399 | \n \n \n 155 | \n \n \n 554 | \n \n \n 8,802 | \n
Credit risk losses are inherent to fixed-income securities. The level of this risk and the compensation for bearing it are related. A\u00a0key\u00a0management measure to avoid excessive credit risk is to diversify and limit exposure to individual issuers.
Aegon measures credit risk in line with the IFRS 9 approach for Expected Credit Loss (ECL). ECL is calculated as the product of\u00a0the projected probability of default (PD), the loss given default (LGD), and the exposure at default (EAD), discounted at an\u00a0appropriate rate. ECL is then determined as the probability-weighted, discounted credit loss across multiple scenarios (for\u00a0example,\u00a0base, positive, adverse).
\nAegon uses the \"three-stage\" model for impairment as outlined in IFRS 9, based on relative changes in credit quality since initial recognition. The table below shows the characteristics of the three stages.
| \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 the staging of financial instruments, Aegon incorporates multiple, forward looking macro- scenarios to drive the\u00a0ECL\u00a0provision. Forward-looking inputs used to measure ECLs must align with those used to assess significant increases in\u00a0credit\u00a0risk.
The Group uses different models to calculate ECL across asset classes. The following sections outline the Group\u2019s key judgments and assumptions for each model.
For bonds and private placements, the Group uses a global correlation model that links credit quality movements across asset classes to macroeconomic trends. This model determines conditional PD and LGD under specific macroeconomic scenarios. Unconditional PD and LGD curves are developed using distinct methods for sovereign debt, corporate bonds, and\u00a0private placements.
For commercial mortgage loans and mortgage-backed securities, parameters are estimated using commercial mortgage metrics. These build on corporate bond PD and LGD estimates, adjusted for factors like debt service coverage and loan-to-value ratios.
Asset-backed securities are modeled separately, with instruments pooled by collateral type, and credit-loss parameters estimated collectively. For collateralized debt (loan) obligations (CDOs and CLOs), different models are applied depending on\u00a0the region of the exposure.
The following tables contain an analysis of Aegon\u2019s credit risk exposure for debt instruments and loans for which an ECL allowance is\u00a0recognized.\u00a0All asset categories not presented here are\u00a0determined to have non-material credit risk or to be of\u00a0a\u00a0short-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 Financial assets | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n 3,843 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,843 | \n \n \n 3,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,295 | \n
| \n \n AA | \n \n \n 7,787 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 7,788 | \n \n \n 9,100 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 9,101 | \n
| \n \n A | \n \n \n 18,394 | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 18,403 | \n \n \n 19,443 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19,443 | \n
| \n \n BBB | \n \n \n 18,050 | \n \n \n 84 | \n \n \n - | \n \n \n 1 | \n \n \n 18,135 | \n \n \n 20,724 | \n \n \n 7 | \n \n \n - | \n \n \n 1 | \n \n \n 20,732 | \n
| \n \n BB | \n \n \n 810 | \n \n \n 124 | \n \n \n - | \n \n \n - | \n \n \n 934 | \n \n \n 949 | \n \n \n 157 | \n \n \n - | \n \n \n - | \n \n \n 1,106 | \n
| \n \n B | \n \n \n 150 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 245 | \n \n \n 361 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 456 | \n
| \n \n CCC and lower | \n \n \n 48 | \n \n \n 55 | \n \n \n 221 | \n \n \n 74 | \n \n \n 398 | \n \n \n 85 | \n \n \n 79 | \n \n \n 289 | \n \n \n 91 | \n \n \n 544 | \n
| \n \n Net carrying amount | \n \n \n 49,082 | \n \n \n 358 | \n \n \n 232 | \n \n \n 75 | \n \n \n 49,747 | \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 Expected credit loss | \n \n \n \n \n (189) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \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 Loans at | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n Internal grade 1 | \n \n \n 847 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 847 | \n \n \n 977 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 1,013 | \n
| \n \n Internal grade 2 | \n \n \n 4,023 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,023 | \n \n \n 4,410 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n
| \n \n Internal grade 3 | \n \n \n 4,304 | \n \n \n 15 | \n \n \n - | \n \n \n - | \n \n \n 4,319 | \n \n \n 4,539 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 4,546 | \n
| \n \n Internal grade 4 | \n \n \n 413 | \n \n \n 7 | \n \n \n 3 | \n \n \n - | \n \n \n 423 | \n \n \n 644 | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 654 | \n
| \n \n Internal grade 5 | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n 4 | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 81 | \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 9,587 | \n \n \n 115 | \n \n \n 3 | \n \n \n - | \n \n \n 9,705 | \n \n \n 10,573 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n
| \n \n Expected credit loss | \n \n \n \n \n (11) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (33) \n | \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 | \n \n \n 9,575 | \n \n \n 94 | \n \n \n 2 | \n \n \n - | \n \n \n 9,672 | \n \n \n 10,535 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n
Aegon considers a financial instrument to have experienced an SICR 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 Financial guarantees | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \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 increase in credit risk relative to origination.\u00a0The absolute threshold defines a stage for each rating and is primarily used when the rating at origination is unavailable or when an instrument is already in default. The relative PD thresholds can be converted into rating-based thresholds using Moody\u2019s\u00a0standard rating to PD mappings. The\u00a0difference between the PD at\u00a0origination and the PD corresponding to the threshold determines the number of notches that the rating must drop by. For\u00a0example, for a one-year-old instrument with a one-year remaining maturity this gives the following result:
\n\nAegon groups PD values into ranges, shown in the table below. Each range includes minimum and maximum PDs for financial and corporate assets with maturities from 1 to 10 years. As Aegon US best represents the Group, PD data for the Americas is\u00a0presented.
| \n | \n\n | \n\n \n 2025 | \n \n | \n\n \n 2024 | \n
| \n \n PD range | \n \n \n Minimum | \n \n \n Maximum | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0001 | \n \n \n 0.0018 | \n \n \n 0.0001 | \n \n \n 0.0021 | \n
| \n \n AA | \n \n \n 0.0002 | \n \n \n 0.0031 | \n \n \n 0.0002 | \n \n \n 0.0034 | \n
| \n \n A | \n \n \n 0.0006 | \n \n \n 0.0050 | \n \n \n 0.0006 | \n \n \n 0.0052 | \n
| \n \n BBB | \n \n \n 0.0016 | \n \n \n 0.0079 | \n \n \n 0.0017 | \n \n \n 0.0079 | \n
| \n \n BB | \n \n \n 0.0048 | \n \n \n 0.0133 | \n \n \n 0.0048 | \n \n \n 0.0131 | \n
| \n \n B | \n \n \n 0.0117 | \n \n \n 0.0320 | \n \n \n 0.0120 | \n \n \n 0.0307 | \n
| \n \n CCC or lower | \n \n \n 0.0209 | \n \n \n 1.0000 | \n \n \n 0.0196 | \n \n \n 1.0000 | \n
For debt securities, private loans, structured finance securities and deposits with financial institutions the watchlist approach is applied as an additional qualitative criterion. Instruments on the watchlist are closely monitored. Assets are added to the watchlist if their 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. For debt securities and private loans, this assessment is performed at the counterparty level and on a periodic basis. The Group periodically reviews the criteria used to identify SICR for\u00a0appropriateness. For loan commitments and financial guarantees, Aegon defines default consistently with the related loan or financial instrument, considering the same risk factors.
\nA backstop is applied to exposures deemed to have experienced an SICR when the borrower is more than 30 days past due on contractual payments in structured finance and 60 days in commercial mortgage loans. No\u00a0backstop is applied to the other asset classes.
\nAegon has used the low credit risk exemption for debt instruments. Debt instruments that have a credit rating of \"investment grade\" (rating \"BBB\" or higher) are considered to have low credit risk. External and internal credit ratings are used, respectively, to assess whether an SICR has occurred for these assets.
\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 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 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 Financial guarantee contracts | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n
In addition to the criteria in the table above, Aegon identifies other indicators of unlikelihood of payment, such as a lack of future ability to generate cash flows, concerns about sources of recurring income, increased overall leverage of the borrower, material fraud, or the death of a client.
All the criteria above have been applied to Aegon\u2019s financial instruments and align with the definition of default used for internal credit risk management purposes. This definition is consistently used in modeling PD and EAD throughout Aegon\u2019s expected loss calculations.
An instrument is considered \"cured\" when it no longer meets any default criteria for six consecutive months and the obligor is\u00a0assessed as likely to pay. This six-month period assesses the likelihood that a financial instrument will return to default status after cure, using different cure definitions.
\nAegon uses a\u00a0set\u00a0of\u00a0variables describing the state of the macroeconomy as input to the calculation of the probability of default and prepayment.
Subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the\u00a0Group 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.
The lifetime PD for a financial instrument is calculated by summing the probabilities of all future developments that end up in the ECL. All possible future developments are enumerated, and a probability is estimated for each using statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of SICR and the calculation of ECL both incorporate forward-looking information.
The impact of economic variables on ECL and lifetime PD varies by financial instrument, with expert judgment applied throughout the process. Forecasts for these variables (the \u201cbase economic scenario\u201d) reflect Aegon\u2019s best estimate for\u00a0the\u00a0next five years. Beyond that, a mean reversion approach is used, assuming variables return to long-term averages (for\u00a0example,\u00a0unemployment rates or GDP growth) over three years. A statistical regression analysis has been performed to assess how historical changes in macroeconomic variables have influenced default and prepayment rates.
Starting from the base scenario, three macroeconomic scenarios \u2014 positive, neutral, and negative \u2014 are generated by applying shocks to macroeconomic variables, reflecting their historical correlations. These shocks correspond to the average deviation from the long-term mean observed in the best/worst 10% of historical quarters. ECL is calculated for each scenario, weighted accordingly, and then summed up. This multi-scenario approach ensures the ECL reflects a balanced estimate, not just the most likely scenario. 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 on December 31, 2025 | \n \n | \n\n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n 2029 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.29 | \n \n \n 4.32 | \n \n \n 4.33 | \n \n \n 4.30 | \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 4.39 | \n \n \n 4.41 | \n \n \n 4.33 | \n \n \n 4.30 | \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 3.05 | \n \n \n 3.76 | \n \n \n 4.02 | \n \n \n 4.16 | \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 4.78 | \n \n \n 4.59 | \n \n \n 4.29 | \n \n \n 4.05 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.83 | \n \n \n 3.94 | \n \n \n 3.66 | \n \n \n 3.47 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.34 | \n \n \n 7.60 | \n \n \n 6.16 | \n \n \n 4.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 429.08 | \n \n \n 438.87 | \n \n \n 455.20 | \n \n \n 471.22 | \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 450.23 | \n \n \n 472.07 | \n \n \n 494.28 | \n \n \n 513.52 | \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 362.72 | \n \n \n 383.66 | \n \n \n 404.10 | \n \n \n 420.99 | \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 24,484.94 | \n \n \n 24,932.78 | \n \n \n 25,485.10 | \n \n \n 26,129.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,887.20 | \n \n \n 25,401.41 | \n \n \n 26,012.56 | \n \n \n 26,724.26 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 23,372.80 | \n \n \n 23,689.06 | \n \n \n 24,425.29 | \n \n \n 25,270.54 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 6,363.30 | \n \n \n 6,460.73 | \n \n \n 6,953.76 | \n \n \n 7,485.28 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,831.53 | \n \n \n 6,904.30 | \n \n \n 7,343.79 | \n \n \n 7,756.76 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 4,423.87 | \n \n \n 4,764.13 | \n \n \n 5,780.16 | \n \n \n 6,786.08 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions on 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
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, 2025 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking factors, such as regulatory, legislative, or political changes, have been considered but are not deemed material and did not adjust ECL. This process is reviewed quarterly for continued appropriateness.
\nThe Group writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and no reasonable expectation of recovery remains. Indicators include (i) ceasing enforcement activity; and (ii) where Aegon\u2019s recovery method is foreclosing on collateral, and the\u00a0value of\u00a0the collateral is not expected to fully recover.
Assets may still be subject to enforcement when written off. The contractual amounts written off in 2025 were not material. The Group continues to pursue full legal recovery, even for (partially) written-off assets.
\nThe Group may modify loan terms through commercial renegotiations or for distressed loans to maximize recovery. Such\u00a0restructuring activities include extended payment terms and penalty interest arrangements. Policies are based on\u00a0management\u2019s judgment of indicators suggesting continued payment and are reviewed continuously.
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\u00a0applies only to assets that have performed in accordance with the new terms for three consecutive months or more. The\u00a0gross carrying amount of such assets held on December 31, 2025, was EUR 0 million (2024: 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:
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;
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments derecognized in the period;
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of\u00a0inputs to models;
Impacts on the measurement of ECL due to changes made to models and assumptions;
Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during\u00a0the period.
For asset-backed securities, cash flow trends and collateral levels are also 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 table on debt securities explains the changes in the loss allowance between the beginning and the end of the annual period due to these factors:
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n \n Debt securities | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n POCI | \n \n \n Total | \n
| \n \n Loss allowance on January 1, 2025 | \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\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 2 to Stage 1 | \n \n \n \n \n (1) \n | \n \n \n 1 | \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 4 | \n \n \n \n \n (4) \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 (1) \n | \n \n \n 1 | \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 (9) \n | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n
| \n \n Impact of stage transfers on year-end ECL | \n \n \n 9 | \n \n \n \n \n (10) \n | \n \n \n \n \n (51) \n | \n \n \n - | \n \n \n \n \n (52) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 30 | \n \n \n 15 | \n \n \n 28 | \n \n \n - | \n \n \n 73 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (43) \n | \n
| \n \n Change in models | \n \n \n \n \n (26) \n | \n \n \n 3 | \n \n \n \n \n (5) \n | \n \n \n 3 | \n \n \n \n \n (24) \n | \n
| \n \n Net exchange differences | \n \n \n 23 | \n \n \n 5 | \n \n \n 14 | \n \n \n - | \n \n \n 42 | \n
| \n \n Loss allowance on December 31, 2025 | \n \n \n \n \n (188) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n||||
| \n \n Loss allowance on January 1, 2024 | \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 of stage transfers on year-end ECL | \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, 2024 | \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
The ECL allowance for debt securities measured at FVOCI of EUR 347 million (2024: EUR 341 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 decreased by EUR 85 million to EUR 33 million during 2025 (2024: EUR 118 million). The\u00a0decrease in expected credit losses was primarily driven by a mortgage loan in Aegon US and, to a lesser extent, by\u00a0the\u00a0stage transfer of an office facing occupancy and valuation challenges.
Based on the 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\u00a0asset\u00a0types that are not individually material.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Loans measured at amortized cost | \n \n \n 57 | \n \n \n \n \n (88) \n | \n
| \n \n Debt securities measured at FVOCI | \n \n \n \n \n (120) \n | \n \n \n \n \n (140) \n | \n
| \n \n Other | \n \n \n \n \n (6) \n | \n \n \n \n \n (9) \n | \n
| \n \n Net impairment charge in profit or loss | \n \n \n \n \n (69) \n | \n \n \n \n \n (237) \n | \n
The following tables further explain 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 ECL staging | \n \n | \n\n | \n||
| \n \n Debt securities | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n POCI | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1, 2025 | \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 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 (269) \n | \n \n \n 269 | \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 (12) \n | \n \n \n - | \n \n \n 12 | \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 (36) \n | \n \n \n 36 | \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 1 | \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 24 | \n \n \n \n \n (24) \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 12 | \n \n \n - | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n
| \n \n \n \n Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (8,729) \n | \n \n \n \n \n (146) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (8,963) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 8,632 | \n \n \n 4 | \n \n \n 27 | \n \n \n - | \n \n \n 8,663 | \n
| \n \n Unrealized gains/losses through equity | \n \n \n 1,528 | \n \n \n 18 | \n \n \n \n \n (46) \n | \n \n \n \n \n (12) \n | \n \n \n 1,488 | \n
| \n \n Amortizations through income statement | \n \n \n 115 | \n \n \n 1 | \n \n \n 27 | \n \n \n 19 | \n \n \n 162 | \n
| \n \n Net exchange differences | \n \n \n \n \n (6,035) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (6,120) \n | \n
| \n \n Other movements | \n \n \n 7 | \n \n \n \n \n (23) \n | \n \n \n 14 | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (21) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n
| \n \n Gross carrying amount on December 31, 2025 | \n \n \n 46,782 | \n \n \n 358 | \n \n \n 232 | \n \n \n 75 | \n \n \n 47,446 | \n
| \n \n Expected credit losses | \n \n \n \n \n (188) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n||||
| \n \n Gross carrying amount on January 1, 2024 | \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 -\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 \n \n Derecognized assets (excl. write-offs) \n | \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 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 - | \n \n \n \n \n (1) \n | \n \n \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, 2024 | \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 | \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
The total amount of undiscounted ECL at initial recognition for purchased or originated credit-impaired financial assets recognized during the period was EUR 1 million (2024: EUR 4 million).
| \n | \n\n \n ECL staging | \n \n | \n||
| \n \n Loans | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1, 2025 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n 10,716 | \n
| \n \n Transfers: | \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 (22) \n | \n \n \n 22 | \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 (3) \n | \n \n \n 3 | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 2 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n \n \n Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (654) \n | \n \n \n \n \n (45) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (707) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 934 | \n \n \n 23 | \n \n \n - | \n \n \n 957 | \n
| \n \n Realized gains and losses through income statement | \n \n \n 5 | \n \n \n 1 | \n \n \n 2 | \n \n \n 7 | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,251) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (1,268) \n | \n
| \n \n Gross carrying amount on December 31, 2025 | \n \n \n 9,588 | \n \n \n 115 | \n \n \n 3 | \n \n \n 9,705 | \n
| \n \n Expected credit losses | \n \n \n \n \n (11) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (33) \n | \n
| \n \n Net carrying amount on December 31, 2025 | \n \n \n 9,576 | \n \n \n 94 | \n \n \n 2 | \n \n \n 9,672 | \n
| \n | \n\n | \n|||
| \n \n Gross carrying amount on January 1, 2024 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n 10,182 | \n
| \n \n Transfers: | \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 -\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 -\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 Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (633) \n | \n \n \n \n \n (69) \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 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 4 | \n
| \n \n Net exchange differences | \n \n \n 667 | \n \n \n 7 | \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 (1) \n | \n
| \n \n Gross carrying amount on December 31, 2024 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n 10,716 | \n
| \n \n Expected credit losses | \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 (118) \n | \n
| \n \n Net carrying amount on December 31, 2024 | \n \n \n 10,536 | \n \n \n 60 | \n \n \n 2 | \n \n \n 10,598 | \n
The total amount of purchased or originated credit\u2011impaired financial assets recognized during the period was EUR 0 million (2024: EUR 0 million).
\nManagement performs a sensitivity analysis on the ECL recognized on material classes of its assets. As ECL is not material at the end of 2025 and 2024, the sensitivity of ECL is assessed as not material for 2025 and 2024.
\nMarket risk is the risk that changes in market prices (for example, 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.\u00a0Aegon\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 exists on both assets and liabilities. On the asset side, Aegon is exposed through direct equity investments, bearing most of the return volatility and performance risk. On the liability side, exposure arises from insurance and investment contracts where policyholder funds are invested in equities, such as variable annuities, unit-linked products, and mutual funds. While most risk is with policyholders, lower returns can reduce Aegon\u2019s asset management fees. Some products also carry minimum return or accumulation guarantees.
Transamerica\u2019s dynamic hedge program covers variable annuities with guaranteed minimum death benefits (GMDB), guaranteed minimum income benefits (GMIB), and guaranteed minimum withdrawal benefits (GMWB). This program hedges equity and interest rate risks across the entire variable annuity portfolio, stabilizing cash flows and reducing market sensitivity on an economic basis. As of the middle of August 2025, Transamerica expanded its dynamic hedge program for Variable Annuities to further reduce its equity market exposure. The expansion now includes first order equity market exposure of 25% of the Variable Annuities base contracts held by Transamerica Life Insurance Company, Transamerica\u2019s largest insurance carrier. This reduces the economic equity market sensitivity of the portfolio and further solidifies the run-off of the Variable Annuities portfolio. Transamerica also hedges equity risk arising from indexed universal life (IUL) and registered indexed linked annuity (RILA) product lines.
| \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 2025 | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n 2024 | \n
| \n \n Equity funds | \n \n \n 131 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 140 | \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 70 | \n \n \n 16 | \n \n \n 6 | \n \n \n - | \n \n \n 92 | \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 10 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 10 | \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 24 | \n \n \n - | \n \n \n 19 | \n \n \n - | \n \n \n 42 | \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 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \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 2,468 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2,470 | \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 1,542 | \n \n \n 714 | \n \n \n 49 | \n \n \n 1 | \n \n \n 2,306 | \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 4,249 | \n \n \n 731 | \n \n \n 75 | \n \n \n 10 | \n \n \n 5,065 | \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 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 2025 | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n 2024 | \n
| \n \n Communication | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Consumer | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Financials | \n \n \n 16 | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n 22 | \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 125 | \n \n \n 16 | \n \n \n 27 | \n \n \n - | \n \n \n 169 | \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 12 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Other | \n \n \n 50 | \n \n \n - | \n \n \n 4 | \n \n \n 9 | \n \n \n 63 | \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 211 | \n \n \n 16 | \n \n \n 37 | \n \n \n 9 | \n \n \n 273 | \n \n \n 256 | \n \n \n 14 | \n \n \n 39 | \n \n \n 9 | \n \n \n 317 | \n
The table below sets forth the closing levels of certain major indices at the end of the last five years.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n
| \n \n S&P 500 | \n \n \n 6,846 | \n \n \n 5,882 | \n \n \n 4,770 | \n \n \n 3,840 | \n \n \n 4,766 | \n
| \n \n Nasdaq | \n \n \n 25,250 | \n \n \n 21,012 | \n \n \n 15,011 | \n \n \n 10,466 | \n \n \n 15,645 | \n
| \n \n FTSE 100 | \n \n \n 9,931 | \n \n \n 8,173 | \n \n \n 7,733 | \n \n \n 7,452 | \n \n \n 7,385 | \n
| \n \n AEX | \n \n \n 951 | \n \n \n 879 | \n \n \n 787 | \n \n \n 689 | \n \n \n 798 | \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\n \n 2025 | \n \n \n 2024 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Equity | \n \n \n CSM | \n \n \n Net result | \n \n \n Equity | \n
| \n \n 10% increase in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n 18 | \n \n \n 21 | \n \n \n - | \n \n \n \n \n (8) \n | \n \n \n \n \n (6) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 127 | \n \n \n 122 | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n \n \n (30) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 298 | \n \n \n \n \n (45) \n | \n \n \n \n \n (47) \n | \n \n \n 363 | \n \n \n 154 | \n \n \n 160 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 10% decrease in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n \n \n (16) \n | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n 8 | \n \n \n 1 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (176) \n | \n \n \n \n \n (169) \n | \n \n \n - | \n \n \n 7 | \n \n \n 7 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (299) \n | \n \n \n 96 | \n \n \n 91 | \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\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 25% increase in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n 41 | \n \n \n 50 | \n \n \n - | \n \n \n \n \n (24) \n | \n \n \n \n \n (15) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 277 | \n \n \n 267 | \n \n \n - | \n \n \n \n \n (95) \n | \n \n \n \n \n (99) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 748 | \n \n \n \n \n (70) \n | \n \n \n \n \n (78) \n | \n \n \n 916 | \n \n \n 398 | \n \n \n 413 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 25% decrease in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n \n \n (31) \n | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n 24 | \n \n \n 9 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (165) \n | \n \n \n \n \n (159) \n | \n \n \n - | \n \n \n 326 | \n \n \n 340 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (764) \n | \n \n \n \n \n (80) \n | \n \n \n \n \n (84) \n | \n \n \n \n \n (847) \n | \n \n \n \n \n (770) \n | \n \n \n \n \n (807) \n | \n
Over 2025, the decreased CSM sensitivities resulted from the Variable Annuity base fee hedge implementation in 2025, which modifies the portfolio\u2019s economic exposure and reduces sensitivity to market movements. The decrease of net equity sensitivities and\u00a0directional changes in the sensitivities of (re)insurance assets and liabilities are due to growth in the Registered Index\u2011Linked Annuity (RILA) product combined with Transamerica\u2019s other strategic product, Indexed Universal Life (IUL). Sensitivities of these products have opposite sensitivities compared to the Variable Annuity (VA) products. More offsetting synergy was observed over 2025 as RILA/IUL continued to grow\u00a0to offset VA resulting in sensitivity decrease.
\nAegon bears interest rate risk with many of its products. When 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\u00a0some products, cash flows are less predictable due to policyholder actions that can be affected by interest rate levels.
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 require Aegon to make cash payments by selling invested assets at a time when asset prices are adversely affected by rising market interest rates, resulting in realized investment losses. These cash payments to policyholders reduce total invested assets and\u00a0the net result.
During periods of sustained low interest rates, Aegon may be unable to preserve margins due to minimum interest rate guarantees and minimum guaranteed crediting rates on policies. Also, investment returns may be lower because interest income on new fixed-income investments is likely to have declined with 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\u00a0rates and Aegon may be required to reinvest the proceeds in securities bearing lower interest rates. Accordingly, the net\u00a0result 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 actively manages interest rate risk, taking into account policyholder behavior and management actions. It uses advanced measurement techniques, derivatives, and other tools, as outlined in its Investment & Counterparty Risk policy, to\u00a0limit exposure. Derivative use is governed by Aegon\u2019s Derivative Use Policy, detailed in note 20 Derivatives.
The following table shows interest rates at the end of each of the past five years.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n
| \n \n 3-month Term SOFR | \n \n \n 3.65% | \n \n \n 4.31% | \n \n \n 5.33% | \n \n \n 4.59% | \n \n \n 0.91% | \n
| \n \n 3-month EURIBOR | \n \n \n 2.03% | \n \n \n 2.71% | \n \n \n 3.91% | \n \n \n 2.13% | \n \n \n -0.57% | \n
| \n \n 10-year US Treasury | \n \n \n 4.17% | \n \n \n 4.57% | \n \n \n 3.86% | \n \n \n 3.83% | \n \n \n 1.78% | \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 2025 | \n \n \n 2024 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Equity | \n \n \n CSM | \n \n \n Net result | \n \n \n 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 \n (11) \n | \n \n \n \n \n (662) \n | \n \n \n - | \n \n \n \n \n (12) \n | \n \n \n \n \n (729) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n \n \n (1) \n | \n \n \n \n \n (553) \n | \n \n \n \n \n (2,835) \n | \n \n \n - | \n \n \n \n \n (717) \n | \n \n \n \n \n (3,596) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 87 | \n \n \n 656 | \n \n \n 3,047 | \n \n \n 49 | \n \n \n 742 | \n \n \n 4,009 | \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 \n 14 | \n \n \n 780 | \n \n \n - | \n \n \n 15 | \n \n \n 859 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 695 | \n \n \n 3,257 | \n \n \n - | \n \n \n 957 | \n \n \n 4,255 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (91) \n | \n \n \n \n \n (872) \n | \n \n \n \n \n (3,874) \n | \n \n \n \n \n (50) \n | \n \n \n \n \n (989) \n | \n \n \n \n \n (5,113) \n | \n
Over 2025, CSM sensitivity increased primarily due to updates to Variable Annuity assumptions in 2025. Net result sensitivities increased driven by registered index-linked annuities (RILA) due to increased exposure from new business growth. Additionally, Shareholders\u2019 equity sensitivity increased mainly because of higher Indexed unit linked (IUL) sensitivity within U.S.\u00a0Protection Solutions Life line of business, which reduced liability sensitivity, and increased asset sensitivity driven by new business growth.
The exposures across our products vary, and we have several asymmetric exposures, which are mainly explained by certain US\u00a0products.
Stable Value Solutions (SVS) and parts of Universal Life\u00a0feature stable surrender values and crediting rates. When interest rates rise, lapses become more attractive to customers, leading to losses due to market movements. Additionally, IFRS 9 accounting rules create asymmetry, as they require negative SVS liabilities to be floored at zero in the event of falling interest\u00a0rates.
Other longer-duration products, such as Long-Term Care and Unit-Linked policies with non-lapse or secondary guarantees, exhibit natural convexity, meaning they are more sensitive to falling interest rates, which negatively impact valuations, than\u00a0to\u00a0rising\u00a0rates. This is due to expected premium inflows over 10\u201320 years, while claims continue for many years thereafter. The\u00a0combination of these asymmetric exposures with more balanced ones across other products results in overall adverse sensitivities to both rising and falling interest rates.
\nAs an international group, Aegon faces foreign currency translation risk, primarily when policies are denominated in currencies other than the issuer\u2019s functional currency. Currency risk in investment portfolios backing insurance and investment liabilities is managed through asset-liability matching principles. Assets allocated to equity are kept in local currencies to meet regulatory and self-imposed capital requirements. Therefore, fluctuations in the exchange rate affect shareholders\u2019 equity through the translation of subsidiaries' balances into euros, Aegon\u2019s presentation currency.
Aegon holds the remainder of its capital base (perpetual capital securities, subordinated and senior debt) in various currencies aligned with the book value of its country units, thereby mitigating currency effects on shareholders' equity and leverage ratios. However, income from the main non-euro units is not hedged, so earnings may fluctuate due to currency translation. With major operations in the Americas and the United Kingdom, Aegon\u2019s primary exposures are to USD and GBP, which can significantly affect net results and shareholders\u2019 equity.
Aegon\u2019s Investment & Counterparty Risk Policy sets currency risk exposure limits at both the Group and regional levels. Direct\u00a0currency speculation or program trading by country units is not allowed unless explicitly approved by the Group Risk and Capital Committee and the CEO. Assets should be held in, or hedged back to, the functional currency of the business. Where\u00a0this is not possible or practical, remaining currency exposure should be well-documented, and limits are placed on\u00a0the\u00a0total exposure at both the Group and country units\u2019 level.
Information on Aegon's historical net result and shareholders' equity in functional currency are shown in the table below:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net result | \n \n | \n\n | \n\n | \n
| \n \n \n \n Americas (in USD) \n | \n \n \n 423 | \n \n \n 198 | \n \n \n \n \n (266) \n | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 24 | \n \n \n 56 | \n \n \n 26 | \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 5,599 | \n \n \n 3,838 | \n \n \n 3,690 | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 1,087 | \n \n \n 1,198 | \n \n \n 1,256 | \n
The summary of quantitative information about Aegon\u2019s exposure to currency risk arising from insurance and reinsurance contracts and financial instruments is as follows:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||||||
| \n | \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 722 | \n \n \n 1,437 | \n \n \n 66,487 | \n \n \n 689 | \n \n \n 69,335 | \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 Financial instruments - liabilities | \n \n \n 2,774 | \n \n \n 58,644 | \n \n \n 41,641 | \n \n \n - | \n \n \n 103,059 | \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\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 8 | \n \n \n 1 | \n \n \n 17,110 | \n \n \n 52 | \n \n \n 17,171 | \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 Insurance and reinsurance contract - liabilities | \n \n \n 712 | \n \n \n 65,978 | \n \n \n 126,161 | \n \n \n 4,693 | \n \n \n 197,544 | \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
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 Estimated translation effect of movement in exchange rates 1 | \n \n \n Net income | \n \n \n Equity | \n
| \n \n 2025 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD exchange rate | \n \n \n 63 | \n \n \n 889 | \n
| \n \n Increase by 15% of GBP exchange rate | \n \n \n 4 | \n \n \n 226 | \n
| \n \n Increase by 15% of non-euro exchange rate | \n \n \n 90 | \n \n \n 1,259 | \n
| \n \n Decrease by 15% of USD exchange rate | \n \n \n \n \n (50) \n | \n \n \n \n \n (656) \n | \n
| \n \n Decrease by 15% of GBP exchange rate | \n \n \n \n \n (3) \n | \n \n \n \n \n (167) \n | \n
| \n \n Decrease by 15% of non-euro exchange rate | \n \n \n \n \n (66) \n | \n \n \n \n \n (931) \n | \n
| \n | \n\n | \n\n | \n
| \n \n 2024 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD exchange rate | \n \n \n 43 | \n \n \n 734 | \n
| \n \n Increase by 15% of GBP exchange rate | \n \n \n 8 | \n \n \n 264 | \n
| \n \n Increase by 15% of non-euro exchange rate | \n \n \n 72 | \n \n \n 1,126 | \n
| \n \n Decrease by 15% of USD exchange rate | \n \n \n \n \n (31) \n | \n \n \n \n \n (543) \n | \n
| \n \n Decrease by 15% of GBP exchange rate | \n \n \n \n \n (6) \n | \n \n \n \n \n (195) \n | \n
| \n \n Decrease by 15% of non-euro exchange rate | \n \n \n \n \n (53) \n | \n \n \n \n \n (832) \n | \n
Liquidity risk is inherent in Aegon\u2019s business, as each asset and liability has distinct liquidity characteristics. Some liabilities are surrenderable, while some assets - such as private placements, mortgage loans, real estate, and limited partnerships - are less liquid. If Aegon needs substantial cash beyond normal requirements and available credit facilities, it may struggle to sell these assets in the short term or at attractive prices. Liquidity risk is also affected by the use of collateralized derivatives to mitigate other risks.
Aegon\u2019s Liquidity Risk Policy requires country units to maintain sufficient levels of highly liquid assets to meet cash demands by policyholders and account holders over two years. Potential cash demands are assessed under stress scenarios including rising interest rates, multiple downgrades of the Group's credit rating, and spikes in disintermediation (or lapses). At the same time, the liquidity of non-cash and non-government assets is assumed to be severely impaired. All legal entities and the Group must maintain sufficient liquidity to meet obligations under these extreme scenarios.
Aegon held EUR 13,976 million of investments in cash, money market products, and government bonds that are readily saleable or redeemable on demand (2024: EUR 16,291 million, excluding the investments of the disposal group). The\u00a0Group expects to meet its obligations, even during a stressed liquidity event, from operating cash flows, the proceeds of maturing assets, and these highly liquid assets. Further, the Group has access to back-up credit facilities, as disclosed in\u00a0note 31 Borrowings, amounting to EUR 1,351 million which were unused at the end of the reporting period (2024:\u00a0EUR 1,544 million).
The maturity analysis on the next page 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, 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 a notice period is specified, it has been assumed that notice is given immediately, and the repayment has been presented for 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 disclosed amount may be based on the index level as of the reporting date.
To manage liquidity risk arising from financial liabilities, Aegon holds liquid assets, including cash and cash equivalents and investment-grade securities for which there is an active, 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 flows in the table below (Maturity analysis \u2013 insurance and reinsurance contracts) reflect management\u2019s best estimates of gross benefits and expenses, partially offset by expected premiums, fees, and charges from in-force business.
These estimates are based on assumptions from Aegon\u2019s historical experience and on recent trends. Actual payments may differ if experience varies from these assumptions. The projections are presented on an undiscounted, pre-tax, and pre-reinsurance basis.
\nThe following tables provide a maturity analysis of Aegon\u2019s insurance and reinsurance contracts, which reflects the dates on\u00a0which the cash flows are expected to occur. The undiscounted net cash flows below represent the undiscounted best estimate liability for the relevant periods.
| \n \n Undiscounted best estimate liability | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \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 participation contracts | \n \n \n 10,502 | \n \n \n 9,904 | \n \n \n 9,237 | \n \n \n 8,684 | \n \n \n 8,567 | \n \n \n 132,619 | \n \n \n 179,513 | \n
| \n \n - Without direct participation contracts | \n \n \n 2,455 | \n \n \n 2,288 | \n \n \n 2,330 | \n \n \n 2,438 | \n \n \n 2,531 | \n \n \n 160,468 | \n \n \n 172,510 | \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 participation contracts | \n \n \n 2,136 | \n \n \n 2,028 | \n \n \n 1,859 | \n \n \n 1,660 | \n \n \n 1,614 | \n \n \n 21,208 | \n \n \n 30,505 | \n
| \n \n Reinsurance contracts liability | \n \n \n 10 | \n \n \n 11 | \n \n \n 11 | \n \n \n 12 | \n \n \n 12 | \n \n \n 306 | \n \n \n 362 | \n
| \n \n Total | \n \n \n 15,103 | \n \n \n 14,230 | \n \n \n 13,437 | \n \n \n 12,794 | \n \n \n 12,725 | \n \n \n 314,602 | \n \n \n 382,890 | \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 participation 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 3,238 | \n \n \n 2,962 | \n \n \n 2,777 | \n \n \n 2,782 | \n \n \n 2,849 | \n \n \n 170,682 | \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 participation 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 liability | \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 15,224 | \n \n \n 14,821 | \n \n \n 14,261 | \n \n \n 13,376 | \n \n \n 13,239 | \n \n \n 351,920 | \n \n \n 422,841 | \n
| \n \n Expected release of risk adjustment | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \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 participation contracts | \n \n \n 35 | \n \n \n 31 | \n \n \n 27 | \n \n \n 27 | \n \n \n 26 | \n \n \n 328 | \n \n \n 474 | \n
| \n \n - Without direct participation contracts | \n \n \n 41 | \n \n \n 37 | \n \n \n 38 | \n \n \n 40 | \n \n \n 41 | \n \n \n 2,464 | \n \n \n 2,660 | \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 participation contracts | \n \n \n 10 | \n \n \n 9 | \n \n \n 7 | \n \n \n 7 | \n \n \n 7 | \n \n \n 57 | \n \n \n 97 | \n
| \n \n Reinsurance contracts liability | \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 \n \n (2) \n | \n \n \n \n \n (22) \n | \n \n \n \n \n (30) \n | \n
| \n \n Total | \n \n \n 84 | \n \n \n 76 | \n \n \n 70 | \n \n \n 72 | \n \n \n 72 | \n \n \n 2,827 | \n \n \n 3,201 | \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 participation 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 participation 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 Reinsurance contracts liability | \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
For liquidity risk arising from contracts within the scope of IFRS\u202f17, Aegon shows in below table the amounts that are payable on demand, disclosing the relationship between such amounts and the carrying amount of the related portfolios of contracts.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||
| \n \n Liabilities arising from (re)insurance contracts | \n \n \n Amount payable on demand | \n \n \n Carrying amount | \n \n \n Amount payable on demand | \n \n \n Carrying amount | \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 - Direct participation contracts | \n \n \n 122,098 | \n \n \n 128,354 | \n \n \n 129,566 | \n \n \n 136,033 | \n
| \n \n - Without direct participation contracts | \n \n \n 37,919 | \n \n \n 47,269 | \n \n \n 40,782 | \n \n \n 50,767 | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n 1 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 160,018 | \n \n \n 175,624 | \n \n \n 170,348 | \n \n \n 186,801 | \n
Most Aegon insurance products and investment contracts with discretionary participation features include investment-related or investment-return services, under which policyholders may surrender or early terminate their contracts to receive their current account value, net of contractual penalties, after a specified notional period. The current account value reflects the\u00a0fair 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 tables present the Group's maturity analysis for its financial instruments, based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on\u00a0a gross and net\u00a0basis. Also, the gross undiscounted inflows and outflows on non-derivatives.
| \n \n Derivatives - Undiscounted contractual cash flows 1 | \n \n \n On demand | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 893 | \n \n \n 192 | \n \n \n 141 | \n \n \n 175 | \n \n \n 128 | \n \n \n 1,867 | \n \n \n 3,395 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (839) \n | \n \n \n \n \n (176) \n | \n \n \n \n \n (126) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (116) \n | \n \n \n \n \n (1,742) \n | \n \n \n \n \n (3,180) \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 449 | \n \n \n 308 | \n \n \n 299 | \n \n \n 235 | \n \n \n 241 | \n \n \n 4,348 | \n \n \n 5,881 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (436) \n | \n \n \n \n \n (280) \n | \n \n \n \n \n (237) \n | \n \n \n \n \n (221) \n | \n \n \n \n \n (223) \n | \n \n \n \n \n (7,828) \n | \n \n \n \n \n (9,224) \n | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 Non-derivatives - Undiscounted gross contractual cash flows | \n \n \n On demand | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \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 83 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 61 | \n \n \n 156 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 78 | \n \n \n 78 | \n \n \n 59 | \n \n \n 40 | \n \n \n 40 | \n \n \n 2,234 | \n \n \n 2,529 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 94 | \n \n \n 713 | \n \n \n 48 | \n \n \n 48 | \n \n \n 48 | \n \n \n 1,004 | \n \n \n 1,956 | \n
| \n \n Investment contracts | \n \n \n 38,487 | \n \n \n 58,621 | \n \n \n 104 | \n \n \n 21 | \n \n \n 3 | \n \n \n 12 | \n \n \n 41 | \n \n \n 97,290 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 31 | \n \n \n 28 | \n \n \n 26 | \n \n \n 22 | \n \n \n 17 | \n \n \n 96 | \n \n \n 219 | \n
| \n \n Other financial liabilities | \n \n \n 2,877 | \n \n \n 1,099 | \n \n \n 36 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,016 | \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
For maturity information on other obligations, please see note 39 Commitments and contingencies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21613m13987p": { "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 has policies and procedures to manage credit, concentration, and counterparty risks across all material businesses with credit exposure, including bonds, loans, cash and equivalents, collateralized assets, reinsurance assets, and fair value assets. The Group uses risk gradings aligned with major credit rating agencies and applies internal gradings for specific portfolios, such as residential mortgages, to assess the probability of default.
Credit grades are calibrated so that default risk increases exponentially with each higher risk grade. For\u00a0example, the difference in Probability of Default (PD) between the AAA and A rating grades is lower than between the BBB and B rating grades.
\nAs premiums and deposits are received, Aegon invests these funds to meet future policyholder obligations. For assets backing insurance liabilities under the general model and the premium allocation approach, as well as other \"free\" assets, Aegon typically bears the investment risk, including principal and interest.
Aegon\u00a0is exposed to credit risk on its fixed-income portfolio (debt securities, mortgages, private placements), over-the-counter derivatives, and reinsurance contracts. Some issuers have defaulted due to bankruptcy, liquidity issues, economic or real estate downturns, operational failure, or fraud. During financial downturns, Aegon can incur defaults or other value declines, which could materially impact Aegon\u2019s business and financial results and condition adversely.
The estimates of best estimate liability for (re)insurance contract assets represent Aegon\u2019s maximum exposure to credit risk from these assets. Please see the cash flow information in note 29\u00a0Insurance contracts.
The following table contains an analysis of Aegon\u2019s maximum credit risk exposure from financial assets.\u00a0Please\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\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 Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 56,202 | \n \n \n - | \n \n \n - | \n \n \n 53 | \n \n \n - | \n \n \n - | \n \n \n 53 | \n \n \n - | \n \n \n 56,149 | \n
| \n \n Money market and other short-term investments | \n \n \n 5,964 | \n \n \n - | \n \n \n 289 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 289 | \n \n \n 22 | \n \n \n 5,696 | \n
| \n \n Loans | \n \n \n 9,787 | \n \n \n 112 | \n \n \n - | \n \n \n 23 | \n \n \n 21,460 | \n \n \n - | \n \n \n 21,594 | \n \n \n 11,808 | \n \n \n 1 | \n
| \n \n Unconsolidated investment funds | \n \n \n 190,671 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 190,671 | \n
| \n \n Deposits with financial institutes | \n \n \n 1,727 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,727 | \n
| \n \n Other investments | \n \n \n 4,749 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,749 | \n
| \n \n Derivative assets | \n \n \n 485 | \n \n \n 124 | \n \n \n 513 | \n \n \n - | \n \n \n - | \n \n \n 213 | \n \n \n 850 | \n \n \n 406 | \n \n \n 42 | \n
| \n \n Reinsurance assets | \n \n \n 17,153 | \n \n \n - | \n \n \n 15,363 | \n \n \n 731 | \n \n \n - | \n \n \n - | \n \n \n 16,093 | \n \n \n - | \n \n \n 1,060 | \n
| \n \n On December 31, 2025 | \n \n \n 286,739 | \n \n \n 236 | \n \n \n 16,165 | \n \n \n 807 | \n \n \n 21,460 | \n \n \n 213 | \n \n \n 38,880 | \n \n \n 12,236 | \n \n \n 260,095 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 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 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 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 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 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 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 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 14,872 | \n \n \n - | \n \n \n 1,149 | \n
| \n \n On December 31, 2024 | \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 40,127 | \n \n \n 13,462 | \n \n \n 267,932 | \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 money market and short-term investments relates 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.
\nReal estate collateral for mortgages includes both residential and commercial properties. For commercial mortgage loans in Aegon Americas, collateral is measured at fair value. At least annually, the fair value of each individual property pledged as collateral is estimated. At loan origination, an external appraisal is used to estimate the property's value. In subsequent years, internal valuations are conducted using professionally accepted methods by accredited personnel. International valuation standards are used, which consider key assumptions such as replacement cost, income-generating potential, and recent sales of comparable properties. Valuations are primarily supported by market evidence.
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.
\nA significant portion of instruments have been designated as FVPL. On December 31, 2025, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 2,048 million (December 2024: EUR\u00a02,337 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following table presents changes in\u00a0fair value attributable to changes in credit risk, recognized for these investments:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n | \n\n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value during the year | \n \n \n 1 | \n \n \n 7 | \n \n \n 8 | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value | \n \n \n - | \n \n \n 45 | \n \n \n 45 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \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 method reasonably approximates credit risk impact, as fixed income valuations are primarily influenced by interest rates and credit spreads. Thus,\u00a0isolating non-credit factors allows for an estimate of credit-related fair value changes.
\nThe master netting agreements column in the table pertains to derivative liability positions that are used in Aegon's credit risk management. The offset in the master netting agreements column includes balances for which there is a legally enforceable right of offset, but no intention to settle them 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 for the reinsurance assets includes assets held in trust by the reinsurer for Aegon's benefit. Trust assets can be accessed to pay policyholder benefits if reinsurers fail to perform under their contracts. 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.
\nOn December 31, 2025, the Group held no collateral that was obtained during the year (EUR 0 in 2024) 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 non-cash collateral for its own operations.
\nAegon manages credit risk by counterparty, sector, and asset class, including cash. Credit risk in derivative contracts is typically mitigated through credit support agreements and ISDA master netting agreements across most of Aegon's legal entities, enabling offsetting of exposures. Main counterparties are investment banks, generally rated \u201cA\u201d or higher. These agreements define collateral thresholds, with most collateralized transactions involving interest rate, equity, currency, and credit swaps. Collateral, mainly in USD and EUR cash, must meet high-quality standards. No derivative counterparty defaults occurred in the past three years. Credit risk under master netting agreements is offset only when liabilities are settled after asset realization. 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 the 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 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 the group level and the individual country units. If an exposure exceeds the stated limit, it must be reduced to the limit for the country unit and rating category as soon as possible. Exceptions to these limits may be made only with explicit approval from Aegon's\u00a0Group Risk and Capital Committee (GRCC). The policy is reviewed regularly.
To hedge inflation risk in products offered to policyholders, Aegon invests in instruments linked to inflation, significantly reducing net exposure.
\nSince Aegon changed its policies in 2025, Group limits are denominated in US Dollar instead of Euro. Aegon group level long-term counterparty exposure limits are as follows:
| \n \n Group limits per credit rating | \n \n \n 2025 USD million | \n \n \n 2024 EUR million | \n
| \n \n AAA | \n \n \n 750 | \n \n \n 900 | \n
| \n \n AA | \n \n \n 750 | \n \n \n 900 | \n
| \n \n A | \n \n \n 575 | \n \n \n 675 | \n
| \n \n BBB | \n \n \n 375 | \n \n \n 450 | \n
| \n \n BB | \n \n \n 225 | \n \n \n 250 | \n
| \n \n B | \n \n \n 110 | \n \n \n 125 | \n
| \n \n CCC or lower | \n \n \n 45 | \n \n \n 50 | \n
The ratings distribution of Aegon\u2019s general account portfolios \u2014 excluding reinsurance assets \u2014 is shown in the following table, categorized by rating and split by assets measured at fair value and amortized cost. Aegon applies a composite rating based on external ratings from S&P, Moody\u2019s, Fitch, and the National Association of Insurance Commissioners (NAIC for U.S. assets), along with internal ratings. The lower of the external and internal ratings is used.
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n 2025 Total 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 Carrying value | \n
| \n \n AAA | \n \n \n 847 | \n \n \n 5,625 | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 40 | \n \n \n - | \n \n \n 127 | \n \n \n 847 | \n \n \n 5,822 | \n \n \n 6,669 | \n
| \n \n AA | \n \n \n 4,023 | \n \n \n 7,916 | \n \n \n - | \n \n \n 416 | \n \n \n - | \n \n \n 130 | \n \n \n - | \n \n \n - | \n \n \n 4,023 | \n \n \n 8,462 | \n \n \n 12,485 | \n
| \n \n A | \n \n \n 4,319 | \n \n \n 18,580 | \n \n \n - | \n \n \n 217 | \n \n \n 1 | \n \n \n 694 | \n \n \n 24 | \n \n \n - | \n \n \n 4,355 | \n \n \n 19,491 | \n \n \n 23,846 | \n
| \n \n BBB | \n \n \n 423 | \n \n \n 18,406 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 346 | \n \n \n 3 | \n \n \n - | \n \n \n 426 | \n \n \n 18,756 | \n \n \n 19,182 | \n
| \n \n BB | \n \n \n - | \n \n \n 984 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 22 | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n \n \n 1,007 | \n \n \n 1,007 | \n
| \n \n B | \n \n \n 93 | \n \n \n 262 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 8 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n 277 | \n \n \n 370 | \n
| \n \n CCC or lower | \n \n \n - | \n \n \n 569 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 8 | \n \n \n - | \n \n \n 8 | \n \n \n 570 | \n \n \n 577 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 4,349 | \n \n \n - | \n \n \n 744 | \n \n \n - | \n \n \n 24 | \n \n \n - | \n \n \n 68 | \n \n \n - | \n \n \n 5,189 | \n \n \n 5,189 | \n
| \n \n Total | \n \n \n 9,704 | \n \n \n 56,690 | \n \n \n - | \n \n \n 1,420 | \n \n \n 1 | \n \n \n 1,266 | \n \n \n 36 | \n \n \n 194 | \n \n \n 9,752 | \n \n \n 59,574 | \n \n \n 69,326 | \n
| \n \n ECL on financial assets | \n \n \n \n \n (33) \n | \n \n \n \n \n (340) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n \n \n (347) \n | \n \n \n \n \n (380) \n | \n
| \n \n On December 31, 2025 | \n \n \n 9,671 | \n \n \n 56,690 | \n \n \n - | \n \n \n 1,420 | \n \n \n 1 | \n \n \n 1,266 | \n \n \n 36 | \n \n \n 194 | \n \n \n 9,719 | \n \n \n 59,574 | \n \n \n 69,293 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n||
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 Total 1 | \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
The following table shows the credit quality of the reinsurance contracts:
| \n \n Carrying value | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n - | \n \n \n - | \n
| \n \n AA | \n \n \n 1,008 | \n \n \n 1,087 | \n
| \n \n A | \n \n \n 14,832 | \n \n \n 14,041 | \n
| \n \n Below A | \n \n \n 208 | \n \n \n 3 | \n
| \n \n Not rated | \n \n \n 910 | \n \n \n 587 | \n
| \n \n On December 31 | \n \n \n 16,958 | \n \n \n 15,719 | \n
The following tables present specific credit risk concentration information for general account financial assets.
| \n \n Debt securities and | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n 2025 Total 1 | \n \n \n Of which past due and/or impaired | \n
| \n \n \n \n Residential mortgage-backed securities (RMBSs) \n | \n \n \n 827 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 827 | \n \n \n \n \n (16) \n | \n
| \n \n \n \n Commercial mortgage-backed securities (CMBSs) \n | \n \n \n 2,419 | \n \n \n 26 | \n \n \n 34 | \n \n \n - | \n \n \n 2,479 | \n \n \n \n \n (40) \n | \n
| \n \n \n \n Asset-backed securities (ABSs) \n | \n \n \n 616 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 617 | \n \n \n \n \n (1) \n | \n
| \n \n ABSs \u2013 Other | \n \n \n 5,820 | \n \n \n 43 | \n \n \n 26 | \n \n \n 102 | \n \n \n 5,991 | \n \n \n \n \n (29) \n | \n
| \n \n Financial - Banking | \n \n \n 3,261 | \n \n \n 165 | \n \n \n 190 | \n \n \n - | \n \n \n 3,616 | \n \n \n \n \n (15) \n | \n
| \n \n Financial - Other | \n \n \n 9,831 | \n \n \n 54 | \n \n \n 158 | \n \n \n 100 | \n \n \n 10,144 | \n \n \n \n \n (53) \n | \n
| \n \n Capital goods and other industry | \n \n \n 3,273 | \n \n \n 18 | \n \n \n 76 | \n \n \n - | \n \n \n 3,366 | \n \n \n \n \n (41) \n | \n
| \n \n Communications & Technology | \n \n \n 3,879 | \n \n \n 11 | \n \n \n 77 | \n \n \n - | \n \n \n 3,967 | \n \n \n \n \n (44) \n | \n
| \n \n Consumer cyclical | \n \n \n 3,354 | \n \n \n 9 | \n \n \n 100 | \n \n \n - | \n \n \n 3,463 | \n \n \n \n \n (35) \n | \n
| \n \n Consumer non-cyclical | \n \n \n 5,062 | \n \n \n 38 | \n \n \n 116 | \n \n \n - | \n \n \n 5,216 | \n \n \n \n \n (33) \n | \n
| \n \n Energy | \n \n \n 2,325 | \n \n \n 10 | \n \n \n 41 | \n \n \n - | \n \n \n 2,376 | \n \n \n \n \n (12) \n | \n
| \n \n Transportation | \n \n \n 1,658 | \n \n \n 4 | \n \n \n 20 | \n \n \n - | \n \n \n 1,682 | \n \n \n \n \n (6) \n | \n
| \n \n Utility | \n \n \n 3,902 | \n \n \n 2 | \n \n \n 37 | \n \n \n - | \n \n \n 3,941 | \n \n \n \n \n (10) \n | \n
| \n \n Government bonds | \n \n \n 5,762 | \n \n \n 302 | \n \n \n 293 | \n \n \n 17 | \n \n \n 6,374 | \n \n \n \n \n (13) \n | \n
| \n \n On December 31, 2025 | \n \n \n 51,990 | \n \n \n 682 | \n \n \n 1,169 | \n \n \n 220 | \n \n \n 54,060 | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 Total 1 | \n \n | \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 \n \n Asset-backed securities (ABSs) \n | \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 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 2025 | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n 2024 | \n
| \n \n United States | \n \n \n 5,017 | \n \n \n 2 | \n \n \n 64 | \n \n \n - | \n \n \n 5,084 | \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 - | \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 257 | \n \n \n - | \n \n \n 17 | \n \n \n 275 | \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 9 | \n \n \n - | \n \n \n 9 | \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 3 | \n \n \n - | \n \n \n 3 | \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 18 | \n \n \n 8 | \n \n \n - | \n \n \n 25 | \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 19 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 21 | \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 63 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 63 | \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 6 | \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 188 | \n \n \n - | \n \n \n 188 | \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 76 | \n \n \n - | \n \n \n 8 | \n \n \n - | \n \n \n 84 | \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 586 | \n \n \n 19 | \n \n \n 7 | \n \n \n - | \n \n \n 612 | \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 | \n \n \n 5,762 | \n \n \n 302 | \n \n \n 293 | \n \n \n 17 | \n \n \n 6,374 | \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 rating * | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n 2025 | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n 160 | \n \n \n 536 | \n \n \n 3,407 | \n \n \n 1,708 | \n \n \n 5,811 | \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 4,754 | \n \n \n 2,413 | \n \n \n 1,200 | \n \n \n - | \n \n \n 8,367 | \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 777 | \n \n \n 14,804 | \n \n \n 3,573 | \n \n \n - | \n \n \n 19,154 | \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 402 | \n \n \n 17,264 | \n \n \n 1,059 | \n \n \n - | \n \n \n 18,725 | \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 247 | \n \n \n 672 | \n \n \n 83 | \n \n \n - | \n \n \n 1,002 | \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 19 | \n \n \n 171 | \n \n \n 154 | \n \n \n - | \n \n \n 345 | \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 15 | \n \n \n 103 | \n \n \n 439 | \n \n \n - | \n \n \n 557 | \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 94 | \n \n \n 94 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 83 | \n \n \n 83 | \n
| \n \n On December 31 | \n \n \n 6,374 | \n \n \n 35,963 | \n \n \n 9,914 | \n \n \n 1,802 | \n \n \n 54,054 | \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 Mortgage loans | \n \n \n Americas | \n \n \n International | \n \n \n 2025 | \n \n \n Of which past due and / or impaired | \n \n \n Americas | \n \n \n International | \n \n \n 2024 | \n \n \n Of which past due and/or impaired | \n
| \n \n Agricultural | \n \n \n 40 | \n \n \n - | \n \n \n 40 | \n \n \n \n \n (1) \n | \n \n \n 47 | \n \n \n - | \n \n \n 47 | \n \n \n - | \n
| \n \n Apartment | \n \n \n 4,954 | \n \n \n - | \n \n \n 4,954 | \n \n \n \n \n (5) \n | \n \n \n 5,618 | \n \n \n - | \n \n \n 5,618 | \n \n \n \n \n (8) \n | \n
| \n \n Industrial | \n \n \n 455 | \n \n \n - | \n \n \n 455 | \n \n \n - | \n \n \n 474 | \n \n \n - | \n \n \n 474 | \n \n \n - | \n
| \n \n Office | \n \n \n 1,105 | \n \n \n - | \n \n \n 1,105 | \n \n \n \n \n (27) \n | \n \n \n 1,270 | \n \n \n - | \n \n \n 1,270 | \n \n \n \n \n (109) \n | \n
| \n \n Retail | \n \n \n 1,257 | \n \n \n - | \n \n \n 1,257 | \n \n \n - | \n \n \n 1,384 | \n \n \n - | \n \n \n 1,384 | \n \n \n \n \n (1) \n | \n
| \n \n Other commercial | \n \n \n 1,942 | \n \n \n 1 | \n \n \n 1,943 | \n \n \n - | \n \n \n 1,885 | \n \n \n 1 | \n \n \n 1,886 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 9,753 | \n \n \n 1 | \n \n \n 9,754 | \n \n \n \n \n (33) \n | \n \n \n 10,679 | \n \n \n 1 | \n \n \n 10,680 | \n \n \n \n \n (118) \n | \n
Aegon\u2019s investments in unconsolidated structured entities \u2014 such as RMBSs, CMBSs, ABSs, and investment funds \u2014 are reported under \u201cInvestments\u201d on the statement of financial position. These interests are basic interests. Aegon holds no related loans, derivatives, guarantees, or other interests relating to these investments.
For RMBSs, CMBSs, and ABSs, Aegon\u2019s maximum exposure to loss equals the carrying amount, as shown in the credit risk concentration table for debt securities and money market investments. To manage credit risk, Aegon primarily invests in senior notes of these instruments. The portfolios are broadly diversified by issuer, resulting in only non-controlling interests in\u00a0individual unconsolidated structured entities. Additionally, Aegon does not originate these investments.
As the collateral manager of collateralized loan obligations (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 in the form of participation in the subordinated tranches of the structure, which concentrate credit risk on the underlying assets of the CLO. Aegon\u2019s maximum exposure to credit risk is the carrying amount of these investments, which was EUR\u00a0190,671 million on December 31, 2025 (2024: EUR 192,775 million).
Except for commitments, such as future purchases in investment funds, as disclosed in note 39 Commitments and contingencies,\u00a0Aegon did not provide, nor is it required to provide financial or other support to unconsolidated structured entities. Aegon also has no intention to offer such support to entities in which it currently holds or previously held an interest.
For RMBSs, CMBSs, and ABSs\u00a0in which Aegon has an interest at the 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\u00a0financial position of Aegon's interests in RMBSs, CMBSs, and ABSs.
| \n | \n\n | \n\n \n 2025 | \n \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n Interest income | \n \n \n Gains/(losses) on sale | \n \n \n Total Income | \n \n \n Investments | \n \n \n Interest income | \n \n \n Gains/(losses) on sale | \n \n \n Total Income | \n \n \n Investments | \n
| \n \n RMBSs | \n \n \n 57 | \n \n \n 7 | \n \n \n 64 | \n \n \n 827 | \n \n \n 58 | \n \n \n \n \n (13) \n | \n \n \n 45 | \n \n \n 684 | \n
| \n \n CMBSs | \n \n \n 115 | \n \n \n 87 | \n \n \n 202 | \n \n \n 2,479 | \n \n \n 97 | \n \n \n 98 | \n \n \n 194 | \n \n \n 2,582 | \n
| \n \n ABSs | \n \n \n 33 | \n \n \n - | \n \n \n 33 | \n \n \n 617 | \n \n \n 38 | \n \n \n 12 | \n \n \n 50 | \n \n \n 585 | \n
| \n \n ABSs - Other | \n \n \n 296 | \n \n \n 114 | \n \n \n 410 | \n \n \n 5,991 | \n \n \n 206 | \n \n \n 58 | \n \n \n 264 | \n \n \n 4,952 | \n
| \n \n Total | \n \n \n 501 | \n \n \n 208 | \n \n \n 708 | \n \n \n 9,914 | \n \n \n 399 | \n \n \n 155 | \n \n \n 554 | \n \n \n 8,802 | \n
Credit risk losses are inherent to fixed-income securities. The level of this risk and the compensation for bearing it are related. A\u00a0key\u00a0management measure to avoid excessive credit risk is to diversify and limit exposure to individual issuers.
Aegon measures credit risk in line with the IFRS 9 approach for Expected Credit Loss (ECL). ECL is calculated as the product of\u00a0the projected probability of default (PD), the loss given default (LGD), and the exposure at default (EAD), discounted at an\u00a0appropriate rate. ECL is then determined as the probability-weighted, discounted credit loss across multiple scenarios (for\u00a0example,\u00a0base, positive, adverse).
\nAegon uses the \"three-stage\" model for impairment as outlined in IFRS 9, based on relative changes in credit quality since initial recognition. The table below shows the characteristics of the three stages.
| \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 the staging of financial instruments, Aegon incorporates multiple, forward looking macro- scenarios to drive the\u00a0ECL\u00a0provision. Forward-looking inputs used to measure ECLs must align with those used to assess significant increases in\u00a0credit\u00a0risk.
The Group uses different models to calculate ECL across asset classes. The following sections outline the Group\u2019s key judgments and assumptions for each model.
For bonds and private placements, the Group uses a global correlation model that links credit quality movements across asset classes to macroeconomic trends. This model determines conditional PD and LGD under specific macroeconomic scenarios. Unconditional PD and LGD curves are developed using distinct methods for sovereign debt, corporate bonds, and\u00a0private placements.
For commercial mortgage loans and mortgage-backed securities, parameters are estimated using commercial mortgage metrics. These build on corporate bond PD and LGD estimates, adjusted for factors like debt service coverage and loan-to-value ratios.
Asset-backed securities are modeled separately, with instruments pooled by collateral type, and credit-loss parameters estimated collectively. For collateralized debt (loan) obligations (CDOs and CLOs), different models are applied depending on\u00a0the region of the exposure.
The following tables contain an analysis of Aegon\u2019s credit risk exposure for debt instruments and loans for which an ECL allowance is\u00a0recognized.\u00a0All asset categories not presented here are\u00a0determined to have non-material credit risk or to be of\u00a0a\u00a0short-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 Financial assets | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n 3,843 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,843 | \n \n \n 3,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,295 | \n
| \n \n AA | \n \n \n 7,787 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 7,788 | \n \n \n 9,100 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 9,101 | \n
| \n \n A | \n \n \n 18,394 | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 18,403 | \n \n \n 19,443 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19,443 | \n
| \n \n BBB | \n \n \n 18,050 | \n \n \n 84 | \n \n \n - | \n \n \n 1 | \n \n \n 18,135 | \n \n \n 20,724 | \n \n \n 7 | \n \n \n - | \n \n \n 1 | \n \n \n 20,732 | \n
| \n \n BB | \n \n \n 810 | \n \n \n 124 | \n \n \n - | \n \n \n - | \n \n \n 934 | \n \n \n 949 | \n \n \n 157 | \n \n \n - | \n \n \n - | \n \n \n 1,106 | \n
| \n \n B | \n \n \n 150 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 245 | \n \n \n 361 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 456 | \n
| \n \n CCC and lower | \n \n \n 48 | \n \n \n 55 | \n \n \n 221 | \n \n \n 74 | \n \n \n 398 | \n \n \n 85 | \n \n \n 79 | \n \n \n 289 | \n \n \n 91 | \n \n \n 544 | \n
| \n \n Net carrying amount | \n \n \n 49,082 | \n \n \n 358 | \n \n \n 232 | \n \n \n 75 | \n \n \n 49,747 | \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 Expected credit loss | \n \n \n \n \n (189) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \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 Loans at | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n Internal grade 1 | \n \n \n 847 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 847 | \n \n \n 977 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 1,013 | \n
| \n \n Internal grade 2 | \n \n \n 4,023 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,023 | \n \n \n 4,410 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n
| \n \n Internal grade 3 | \n \n \n 4,304 | \n \n \n 15 | \n \n \n - | \n \n \n - | \n \n \n 4,319 | \n \n \n 4,539 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 4,546 | \n
| \n \n Internal grade 4 | \n \n \n 413 | \n \n \n 7 | \n \n \n 3 | \n \n \n - | \n \n \n 423 | \n \n \n 644 | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 654 | \n
| \n \n Internal grade 5 | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n 4 | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 81 | \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 9,587 | \n \n \n 115 | \n \n \n 3 | \n \n \n - | \n \n \n 9,705 | \n \n \n 10,573 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n
| \n \n Expected credit loss | \n \n \n \n \n (11) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (33) \n | \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 | \n \n \n 9,575 | \n \n \n 94 | \n \n \n 2 | \n \n \n - | \n \n \n 9,672 | \n \n \n 10,535 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n
Aegon considers a financial instrument to have experienced an SICR 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 Financial guarantees | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \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 increase in credit risk relative to origination.\u00a0The absolute threshold defines a stage for each rating and is primarily used when the rating at origination is unavailable or when an instrument is already in default. The relative PD thresholds can be converted into rating-based thresholds using Moody\u2019s\u00a0standard rating to PD mappings. The\u00a0difference between the PD at\u00a0origination and the PD corresponding to the threshold determines the number of notches that the rating must drop by. For\u00a0example, for a one-year-old instrument with a one-year remaining maturity this gives the following result:
\n\nAegon groups PD values into ranges, shown in the table below. Each range includes minimum and maximum PDs for financial and corporate assets with maturities from 1 to 10 years. As Aegon US best represents the Group, PD data for the Americas is\u00a0presented.
| \n | \n\n | \n\n \n 2025 | \n \n | \n\n \n 2024 | \n
| \n \n PD range | \n \n \n Minimum | \n \n \n Maximum | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0001 | \n \n \n 0.0018 | \n \n \n 0.0001 | \n \n \n 0.0021 | \n
| \n \n AA | \n \n \n 0.0002 | \n \n \n 0.0031 | \n \n \n 0.0002 | \n \n \n 0.0034 | \n
| \n \n A | \n \n \n 0.0006 | \n \n \n 0.0050 | \n \n \n 0.0006 | \n \n \n 0.0052 | \n
| \n \n BBB | \n \n \n 0.0016 | \n \n \n 0.0079 | \n \n \n 0.0017 | \n \n \n 0.0079 | \n
| \n \n BB | \n \n \n 0.0048 | \n \n \n 0.0133 | \n \n \n 0.0048 | \n \n \n 0.0131 | \n
| \n \n B | \n \n \n 0.0117 | \n \n \n 0.0320 | \n \n \n 0.0120 | \n \n \n 0.0307 | \n
| \n \n CCC or lower | \n \n \n 0.0209 | \n \n \n 1.0000 | \n \n \n 0.0196 | \n \n \n 1.0000 | \n
For debt securities, private loans, structured finance securities and deposits with financial institutions the watchlist approach is applied as an additional qualitative criterion. Instruments on the watchlist are closely monitored. Assets are added to the watchlist if their 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. For debt securities and private loans, this assessment is performed at the counterparty level and on a periodic basis. The Group periodically reviews the criteria used to identify SICR for\u00a0appropriateness. For loan commitments and financial guarantees, Aegon defines default consistently with the related loan or financial instrument, considering the same risk factors.
\nA backstop is applied to exposures deemed to have experienced an SICR when the borrower is more than 30 days past due on contractual payments in structured finance and 60 days in commercial mortgage loans. No\u00a0backstop is applied to the other asset classes.
\nAegon has used the low credit risk exemption for debt instruments. Debt instruments that have a credit rating of \"investment grade\" (rating \"BBB\" or higher) are considered to have low credit risk. External and internal credit ratings are used, respectively, to assess whether an SICR has occurred for these assets.
\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 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 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 Financial guarantee contracts | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n
In addition to the criteria in the table above, Aegon identifies other indicators of unlikelihood of payment, such as a lack of future ability to generate cash flows, concerns about sources of recurring income, increased overall leverage of the borrower, material fraud, or the death of a client.
All the criteria above have been applied to Aegon\u2019s financial instruments and align with the definition of default used for internal credit risk management purposes. This definition is consistently used in modeling PD and EAD throughout Aegon\u2019s expected loss calculations.
An instrument is considered \"cured\" when it no longer meets any default criteria for six consecutive months and the obligor is\u00a0assessed as likely to pay. This six-month period assesses the likelihood that a financial instrument will return to default status after cure, using different cure definitions.
\nAegon uses a\u00a0set\u00a0of\u00a0variables describing the state of the macroeconomy as input to the calculation of the probability of default and prepayment.
Subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the\u00a0Group 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.
The lifetime PD for a financial instrument is calculated by summing the probabilities of all future developments that end up in the ECL. All possible future developments are enumerated, and a probability is estimated for each using statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of SICR and the calculation of ECL both incorporate forward-looking information.
The impact of economic variables on ECL and lifetime PD varies by financial instrument, with expert judgment applied throughout the process. Forecasts for these variables (the \u201cbase economic scenario\u201d) reflect Aegon\u2019s best estimate for\u00a0the\u00a0next five years. Beyond that, a mean reversion approach is used, assuming variables return to long-term averages (for\u00a0example,\u00a0unemployment rates or GDP growth) over three years. A statistical regression analysis has been performed to assess how historical changes in macroeconomic variables have influenced default and prepayment rates.
Starting from the base scenario, three macroeconomic scenarios \u2014 positive, neutral, and negative \u2014 are generated by applying shocks to macroeconomic variables, reflecting their historical correlations. These shocks correspond to the average deviation from the long-term mean observed in the best/worst 10% of historical quarters. ECL is calculated for each scenario, weighted accordingly, and then summed up. This multi-scenario approach ensures the ECL reflects a balanced estimate, not just the most likely scenario. 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 on December 31, 2025 | \n \n | \n\n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n 2029 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.29 | \n \n \n 4.32 | \n \n \n 4.33 | \n \n \n 4.30 | \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 4.39 | \n \n \n 4.41 | \n \n \n 4.33 | \n \n \n 4.30 | \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 3.05 | \n \n \n 3.76 | \n \n \n 4.02 | \n \n \n 4.16 | \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 4.78 | \n \n \n 4.59 | \n \n \n 4.29 | \n \n \n 4.05 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.83 | \n \n \n 3.94 | \n \n \n 3.66 | \n \n \n 3.47 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.34 | \n \n \n 7.60 | \n \n \n 6.16 | \n \n \n 4.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 429.08 | \n \n \n 438.87 | \n \n \n 455.20 | \n \n \n 471.22 | \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 450.23 | \n \n \n 472.07 | \n \n \n 494.28 | \n \n \n 513.52 | \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 362.72 | \n \n \n 383.66 | \n \n \n 404.10 | \n \n \n 420.99 | \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 24,484.94 | \n \n \n 24,932.78 | \n \n \n 25,485.10 | \n \n \n 26,129.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,887.20 | \n \n \n 25,401.41 | \n \n \n 26,012.56 | \n \n \n 26,724.26 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 23,372.80 | \n \n \n 23,689.06 | \n \n \n 24,425.29 | \n \n \n 25,270.54 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 6,363.30 | \n \n \n 6,460.73 | \n \n \n 6,953.76 | \n \n \n 7,485.28 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,831.53 | \n \n \n 6,904.30 | \n \n \n 7,343.79 | \n \n \n 7,756.76 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 4,423.87 | \n \n \n 4,764.13 | \n \n \n 5,780.16 | \n \n \n 6,786.08 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions on 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
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, 2025 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking factors, such as regulatory, legislative, or political changes, have been considered but are not deemed material and did not adjust ECL. This process is reviewed quarterly for continued appropriateness.
\nThe Group writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and no reasonable expectation of recovery remains. Indicators include (i) ceasing enforcement activity; and (ii) where Aegon\u2019s recovery method is foreclosing on collateral, and the\u00a0value of\u00a0the collateral is not expected to fully recover.
Assets may still be subject to enforcement when written off. The contractual amounts written off in 2025 were not material. The Group continues to pursue full legal recovery, even for (partially) written-off assets.
\nThe Group may modify loan terms through commercial renegotiations or for distressed loans to maximize recovery. Such\u00a0restructuring activities include extended payment terms and penalty interest arrangements. Policies are based on\u00a0management\u2019s judgment of indicators suggesting continued payment and are reviewed continuously.
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\u00a0applies only to assets that have performed in accordance with the new terms for three consecutive months or more. The\u00a0gross carrying amount of such assets held on December 31, 2025, was EUR 0 million (2024: 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:
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;
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments derecognized in the period;
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of\u00a0inputs to models;
Impacts on the measurement of ECL due to changes made to models and assumptions;
Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during\u00a0the period.
For asset-backed securities, cash flow trends and collateral levels are also 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 table on debt securities explains the changes in the loss allowance between the beginning and the end of the annual period due to these factors:
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n \n Debt securities | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n POCI | \n \n \n Total | \n
| \n \n Loss allowance on January 1, 2025 | \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\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 2 to Stage 1 | \n \n \n \n \n (1) \n | \n \n \n 1 | \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 4 | \n \n \n \n \n (4) \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 (1) \n | \n \n \n 1 | \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 (9) \n | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n
| \n \n Impact of stage transfers on year-end ECL | \n \n \n 9 | \n \n \n \n \n (10) \n | \n \n \n \n \n (51) \n | \n \n \n - | \n \n \n \n \n (52) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 30 | \n \n \n 15 | \n \n \n 28 | \n \n \n - | \n \n \n 73 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (43) \n | \n
| \n \n Change in models | \n \n \n \n \n (26) \n | \n \n \n 3 | \n \n \n \n \n (5) \n | \n \n \n 3 | \n \n \n \n \n (24) \n | \n
| \n \n Net exchange differences | \n \n \n 23 | \n \n \n 5 | \n \n \n 14 | \n \n \n - | \n \n \n 42 | \n
| \n \n Loss allowance on December 31, 2025 | \n \n \n \n \n (188) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n||||
| \n \n Loss allowance on January 1, 2024 | \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 of stage transfers on year-end ECL | \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, 2024 | \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
The ECL allowance for debt securities measured at FVOCI of EUR 347 million (2024: EUR 341 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 decreased by EUR 85 million to EUR 33 million during 2025 (2024: EUR 118 million). The\u00a0decrease in expected credit losses was primarily driven by a mortgage loan in Aegon US and, to a lesser extent, by\u00a0the\u00a0stage transfer of an office facing occupancy and valuation challenges.
Based on the 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\u00a0asset\u00a0types that are not individually material.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Loans measured at amortized cost | \n \n \n 57 | \n \n \n \n \n (88) \n | \n
| \n \n Debt securities measured at FVOCI | \n \n \n \n \n (120) \n | \n \n \n \n \n (140) \n | \n
| \n \n Other | \n \n \n \n \n (6) \n | \n \n \n \n \n (9) \n | \n
| \n \n Net impairment charge in profit or loss | \n \n \n \n \n (69) \n | \n \n \n \n \n (237) \n | \n
The following tables further explain 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 ECL staging | \n \n | \n\n | \n||
| \n \n Debt securities | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n POCI | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1, 2025 | \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 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 (269) \n | \n \n \n 269 | \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 (12) \n | \n \n \n - | \n \n \n 12 | \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 (36) \n | \n \n \n 36 | \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 1 | \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 24 | \n \n \n \n \n (24) \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 12 | \n \n \n - | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n
| \n \n \n \n Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (8,729) \n | \n \n \n \n \n (146) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (8,963) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 8,632 | \n \n \n 4 | \n \n \n 27 | \n \n \n - | \n \n \n 8,663 | \n
| \n \n Unrealized gains/losses through equity | \n \n \n 1,528 | \n \n \n 18 | \n \n \n \n \n (46) \n | \n \n \n \n \n (12) \n | \n \n \n 1,488 | \n
| \n \n Amortizations through income statement | \n \n \n 115 | \n \n \n 1 | \n \n \n 27 | \n \n \n 19 | \n \n \n 162 | \n
| \n \n Net exchange differences | \n \n \n \n \n (6,035) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (6,120) \n | \n
| \n \n Other movements | \n \n \n 7 | \n \n \n \n \n (23) \n | \n \n \n 14 | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (21) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n
| \n \n Gross carrying amount on December 31, 2025 | \n \n \n 46,782 | \n \n \n 358 | \n \n \n 232 | \n \n \n 75 | \n \n \n 47,446 | \n
| \n \n Expected credit losses | \n \n \n \n \n (188) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n||||
| \n \n Gross carrying amount on January 1, 2024 | \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 -\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 \n \n Derecognized assets (excl. write-offs) \n | \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 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 - | \n \n \n \n \n (1) \n | \n \n \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, 2024 | \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 | \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
The total amount of undiscounted ECL at initial recognition for purchased or originated credit-impaired financial assets recognized during the period was EUR 1 million (2024: EUR 4 million).
| \n | \n\n \n ECL staging | \n \n | \n||
| \n \n Loans | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1, 2025 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n 10,716 | \n
| \n \n Transfers: | \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 (22) \n | \n \n \n 22 | \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 (3) \n | \n \n \n 3 | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 2 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n \n \n Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (654) \n | \n \n \n \n \n (45) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (707) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 934 | \n \n \n 23 | \n \n \n - | \n \n \n 957 | \n
| \n \n Realized gains and losses through income statement | \n \n \n 5 | \n \n \n 1 | \n \n \n 2 | \n \n \n 7 | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,251) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (1,268) \n | \n
| \n \n Gross carrying amount on December 31, 2025 | \n \n \n 9,588 | \n \n \n 115 | \n \n \n 3 | \n \n \n 9,705 | \n
| \n \n Expected credit losses | \n \n \n \n \n (11) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (33) \n | \n
| \n \n Net carrying amount on December 31, 2025 | \n \n \n 9,576 | \n \n \n 94 | \n \n \n 2 | \n \n \n 9,672 | \n
| \n | \n\n | \n|||
| \n \n Gross carrying amount on January 1, 2024 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n 10,182 | \n
| \n \n Transfers: | \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 -\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 -\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 Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (633) \n | \n \n \n \n \n (69) \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 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 4 | \n
| \n \n Net exchange differences | \n \n \n 667 | \n \n \n 7 | \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 (1) \n | \n
| \n \n Gross carrying amount on December 31, 2024 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n 10,716 | \n
| \n \n Expected credit losses | \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 (118) \n | \n
| \n \n Net carrying amount on December 31, 2024 | \n \n \n 10,536 | \n \n \n 60 | \n \n \n 2 | \n \n \n 10,598 | \n
The total amount of purchased or originated credit\u2011impaired financial assets recognized during the period was EUR 0 million (2024: EUR 0 million).
\nManagement performs a sensitivity analysis on the ECL recognized on material classes of its assets. As ECL is not material at the end of 2025 and 2024, the sensitivity of ECL is assessed as not material for 2025 and 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21615m13989p": { "value": "\nMarket risk is the risk that changes in market prices (for example, 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.\u00a0Aegon\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 exists on both assets and liabilities. On the asset side, Aegon is exposed through direct equity investments, bearing most of the return volatility and performance risk. On the liability side, exposure arises from insurance and investment contracts where policyholder funds are invested in equities, such as variable annuities, unit-linked products, and mutual funds. While most risk is with policyholders, lower returns can reduce Aegon\u2019s asset management fees. Some products also carry minimum return or accumulation guarantees.
Transamerica\u2019s dynamic hedge program covers variable annuities with guaranteed minimum death benefits (GMDB), guaranteed minimum income benefits (GMIB), and guaranteed minimum withdrawal benefits (GMWB). This program hedges equity and interest rate risks across the entire variable annuity portfolio, stabilizing cash flows and reducing market sensitivity on an economic basis. As of the middle of August 2025, Transamerica expanded its dynamic hedge program for Variable Annuities to further reduce its equity market exposure. The expansion now includes first order equity market exposure of 25% of the Variable Annuities base contracts held by Transamerica Life Insurance Company, Transamerica\u2019s largest insurance carrier. This reduces the economic equity market sensitivity of the portfolio and further solidifies the run-off of the Variable Annuities portfolio. Transamerica also hedges equity risk arising from indexed universal life (IUL) and registered indexed linked annuity (RILA) product lines.
| \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 2025 | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n 2024 | \n
| \n \n Equity funds | \n \n \n 131 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 140 | \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 70 | \n \n \n 16 | \n \n \n 6 | \n \n \n - | \n \n \n 92 | \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 10 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 10 | \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 24 | \n \n \n - | \n \n \n 19 | \n \n \n - | \n \n \n 42 | \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 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \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 2,468 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2,470 | \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 1,542 | \n \n \n 714 | \n \n \n 49 | \n \n \n 1 | \n \n \n 2,306 | \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 4,249 | \n \n \n 731 | \n \n \n 75 | \n \n \n 10 | \n \n \n 5,065 | \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 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 2025 | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n 2024 | \n
| \n \n Communication | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Consumer | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Financials | \n \n \n 16 | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n 22 | \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 125 | \n \n \n 16 | \n \n \n 27 | \n \n \n - | \n \n \n 169 | \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 12 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Other | \n \n \n 50 | \n \n \n - | \n \n \n 4 | \n \n \n 9 | \n \n \n 63 | \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 211 | \n \n \n 16 | \n \n \n 37 | \n \n \n 9 | \n \n \n 273 | \n \n \n 256 | \n \n \n 14 | \n \n \n 39 | \n \n \n 9 | \n \n \n 317 | \n
The table below sets forth the closing levels of certain major indices at the end of the last five years.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n
| \n \n S&P 500 | \n \n \n 6,846 | \n \n \n 5,882 | \n \n \n 4,770 | \n \n \n 3,840 | \n \n \n 4,766 | \n
| \n \n Nasdaq | \n \n \n 25,250 | \n \n \n 21,012 | \n \n \n 15,011 | \n \n \n 10,466 | \n \n \n 15,645 | \n
| \n \n FTSE 100 | \n \n \n 9,931 | \n \n \n 8,173 | \n \n \n 7,733 | \n \n \n 7,452 | \n \n \n 7,385 | \n
| \n \n AEX | \n \n \n 951 | \n \n \n 879 | \n \n \n 787 | \n \n \n 689 | \n \n \n 798 | \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\n \n 2025 | \n \n \n 2024 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Equity | \n \n \n CSM | \n \n \n Net result | \n \n \n Equity | \n
| \n \n 10% increase in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n 18 | \n \n \n 21 | \n \n \n - | \n \n \n \n \n (8) \n | \n \n \n \n \n (6) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 127 | \n \n \n 122 | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n \n \n (30) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 298 | \n \n \n \n \n (45) \n | \n \n \n \n \n (47) \n | \n \n \n 363 | \n \n \n 154 | \n \n \n 160 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 10% decrease in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n \n \n (16) \n | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n 8 | \n \n \n 1 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (176) \n | \n \n \n \n \n (169) \n | \n \n \n - | \n \n \n 7 | \n \n \n 7 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (299) \n | \n \n \n 96 | \n \n \n 91 | \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\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 25% increase in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n 41 | \n \n \n 50 | \n \n \n - | \n \n \n \n \n (24) \n | \n \n \n \n \n (15) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 277 | \n \n \n 267 | \n \n \n - | \n \n \n \n \n (95) \n | \n \n \n \n \n (99) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 748 | \n \n \n \n \n (70) \n | \n \n \n \n \n (78) \n | \n \n \n 916 | \n \n \n 398 | \n \n \n 413 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 25% decrease in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n \n \n (31) \n | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n 24 | \n \n \n 9 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (165) \n | \n \n \n \n \n (159) \n | \n \n \n - | \n \n \n 326 | \n \n \n 340 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (764) \n | \n \n \n \n \n (80) \n | \n \n \n \n \n (84) \n | \n \n \n \n \n (847) \n | \n \n \n \n \n (770) \n | \n \n \n \n \n (807) \n | \n
Over 2025, the decreased CSM sensitivities resulted from the Variable Annuity base fee hedge implementation in 2025, which modifies the portfolio\u2019s economic exposure and reduces sensitivity to market movements. The decrease of net equity sensitivities and\u00a0directional changes in the sensitivities of (re)insurance assets and liabilities are due to growth in the Registered Index\u2011Linked Annuity (RILA) product combined with Transamerica\u2019s other strategic product, Indexed Universal Life (IUL). Sensitivities of these products have opposite sensitivities compared to the Variable Annuity (VA) products. More offsetting synergy was observed over 2025 as RILA/IUL continued to grow\u00a0to offset VA resulting in sensitivity decrease.
\nAegon bears interest rate risk with many of its products. When 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\u00a0some products, cash flows are less predictable due to policyholder actions that can be affected by interest rate levels.
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 require Aegon to make cash payments by selling invested assets at a time when asset prices are adversely affected by rising market interest rates, resulting in realized investment losses. These cash payments to policyholders reduce total invested assets and\u00a0the net result.
During periods of sustained low interest rates, Aegon may be unable to preserve margins due to minimum interest rate guarantees and minimum guaranteed crediting rates on policies. Also, investment returns may be lower because interest income on new fixed-income investments is likely to have declined with 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\u00a0rates and Aegon may be required to reinvest the proceeds in securities bearing lower interest rates. Accordingly, the net\u00a0result 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 actively manages interest rate risk, taking into account policyholder behavior and management actions. It uses advanced measurement techniques, derivatives, and other tools, as outlined in its Investment & Counterparty Risk policy, to\u00a0limit exposure. Derivative use is governed by Aegon\u2019s Derivative Use Policy, detailed in note 20 Derivatives.
The following table shows interest rates at the end of each of the past five years.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n
| \n \n 3-month Term SOFR | \n \n \n 3.65% | \n \n \n 4.31% | \n \n \n 5.33% | \n \n \n 4.59% | \n \n \n 0.91% | \n
| \n \n 3-month EURIBOR | \n \n \n 2.03% | \n \n \n 2.71% | \n \n \n 3.91% | \n \n \n 2.13% | \n \n \n -0.57% | \n
| \n \n 10-year US Treasury | \n \n \n 4.17% | \n \n \n 4.57% | \n \n \n 3.86% | \n \n \n 3.83% | \n \n \n 1.78% | \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 2025 | \n \n \n 2024 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Equity | \n \n \n CSM | \n \n \n Net result | \n \n \n 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 \n (11) \n | \n \n \n \n \n (662) \n | \n \n \n - | \n \n \n \n \n (12) \n | \n \n \n \n \n (729) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n \n \n (1) \n | \n \n \n \n \n (553) \n | \n \n \n \n \n (2,835) \n | \n \n \n - | \n \n \n \n \n (717) \n | \n \n \n \n \n (3,596) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 87 | \n \n \n 656 | \n \n \n 3,047 | \n \n \n 49 | \n \n \n 742 | \n \n \n 4,009 | \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 \n 14 | \n \n \n 780 | \n \n \n - | \n \n \n 15 | \n \n \n 859 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 695 | \n \n \n 3,257 | \n \n \n - | \n \n \n 957 | \n \n \n 4,255 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (91) \n | \n \n \n \n \n (872) \n | \n \n \n \n \n (3,874) \n | \n \n \n \n \n (50) \n | \n \n \n \n \n (989) \n | \n \n \n \n \n (5,113) \n | \n
Over 2025, CSM sensitivity increased primarily due to updates to Variable Annuity assumptions in 2025. Net result sensitivities increased driven by registered index-linked annuities (RILA) due to increased exposure from new business growth. Additionally, Shareholders\u2019 equity sensitivity increased mainly because of higher Indexed unit linked (IUL) sensitivity within U.S.\u00a0Protection Solutions Life line of business, which reduced liability sensitivity, and increased asset sensitivity driven by new business growth.
The exposures across our products vary, and we have several asymmetric exposures, which are mainly explained by certain US\u00a0products.
Stable Value Solutions (SVS) and parts of Universal Life\u00a0feature stable surrender values and crediting rates. When interest rates rise, lapses become more attractive to customers, leading to losses due to market movements. Additionally, IFRS 9 accounting rules create asymmetry, as they require negative SVS liabilities to be floored at zero in the event of falling interest\u00a0rates.
Other longer-duration products, such as Long-Term Care and Unit-Linked policies with non-lapse or secondary guarantees, exhibit natural convexity, meaning they are more sensitive to falling interest rates, which negatively impact valuations, than\u00a0to\u00a0rising\u00a0rates. This is due to expected premium inflows over 10\u201320 years, while claims continue for many years thereafter. The\u00a0combination of these asymmetric exposures with more balanced ones across other products results in overall adverse sensitivities to both rising and falling interest rates.
\nAs an international group, Aegon faces foreign currency translation risk, primarily when policies are denominated in currencies other than the issuer\u2019s functional currency. Currency risk in investment portfolios backing insurance and investment liabilities is managed through asset-liability matching principles. Assets allocated to equity are kept in local currencies to meet regulatory and self-imposed capital requirements. Therefore, fluctuations in the exchange rate affect shareholders\u2019 equity through the translation of subsidiaries' balances into euros, Aegon\u2019s presentation currency.
Aegon holds the remainder of its capital base (perpetual capital securities, subordinated and senior debt) in various currencies aligned with the book value of its country units, thereby mitigating currency effects on shareholders' equity and leverage ratios. However, income from the main non-euro units is not hedged, so earnings may fluctuate due to currency translation. With major operations in the Americas and the United Kingdom, Aegon\u2019s primary exposures are to USD and GBP, which can significantly affect net results and shareholders\u2019 equity.
Aegon\u2019s Investment & Counterparty Risk Policy sets currency risk exposure limits at both the Group and regional levels. Direct\u00a0currency speculation or program trading by country units is not allowed unless explicitly approved by the Group Risk and Capital Committee and the CEO. Assets should be held in, or hedged back to, the functional currency of the business. Where\u00a0this is not possible or practical, remaining currency exposure should be well-documented, and limits are placed on\u00a0the\u00a0total exposure at both the Group and country units\u2019 level.
Information on Aegon's historical net result and shareholders' equity in functional currency are shown in the table below:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net result | \n \n | \n\n | \n\n | \n
| \n \n \n \n Americas (in USD) \n | \n \n \n 423 | \n \n \n 198 | \n \n \n \n \n (266) \n | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 24 | \n \n \n 56 | \n \n \n 26 | \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 5,599 | \n \n \n 3,838 | \n \n \n 3,690 | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 1,087 | \n \n \n 1,198 | \n \n \n 1,256 | \n
The summary of quantitative information about Aegon\u2019s exposure to currency risk arising from insurance and reinsurance contracts and financial instruments is as follows:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||||||
| \n | \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 722 | \n \n \n 1,437 | \n \n \n 66,487 | \n \n \n 689 | \n \n \n 69,335 | \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 Financial instruments - liabilities | \n \n \n 2,774 | \n \n \n 58,644 | \n \n \n 41,641 | \n \n \n - | \n \n \n 103,059 | \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\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 8 | \n \n \n 1 | \n \n \n 17,110 | \n \n \n 52 | \n \n \n 17,171 | \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 Insurance and reinsurance contract - liabilities | \n \n \n 712 | \n \n \n 65,978 | \n \n \n 126,161 | \n \n \n 4,693 | \n \n \n 197,544 | \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
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 Estimated translation effect of movement in exchange rates 1 | \n \n \n Net income | \n \n \n Equity | \n
| \n \n 2025 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD exchange rate | \n \n \n 63 | \n \n \n 889 | \n
| \n \n Increase by 15% of GBP exchange rate | \n \n \n 4 | \n \n \n 226 | \n
| \n \n Increase by 15% of non-euro exchange rate | \n \n \n 90 | \n \n \n 1,259 | \n
| \n \n Decrease by 15% of USD exchange rate | \n \n \n \n \n (50) \n | \n \n \n \n \n (656) \n | \n
| \n \n Decrease by 15% of GBP exchange rate | \n \n \n \n \n (3) \n | \n \n \n \n \n (167) \n | \n
| \n \n Decrease by 15% of non-euro exchange rate | \n \n \n \n \n (66) \n | \n \n \n \n \n (931) \n | \n
| \n | \n\n | \n\n | \n
| \n \n 2024 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD exchange rate | \n \n \n 43 | \n \n \n 734 | \n
| \n \n Increase by 15% of GBP exchange rate | \n \n \n 8 | \n \n \n 264 | \n
| \n \n Increase by 15% of non-euro exchange rate | \n \n \n 72 | \n \n \n 1,126 | \n
| \n \n Decrease by 15% of USD exchange rate | \n \n \n \n \n (31) \n | \n \n \n \n \n (543) \n | \n
| \n \n Decrease by 15% of GBP exchange rate | \n \n \n \n \n (6) \n | \n \n \n \n \n (195) \n | \n
| \n \n Decrease by 15% of non-euro exchange rate | \n \n \n \n \n (53) \n | \n \n \n \n \n (832) \n | \n
Liquidity risk is inherent in Aegon\u2019s business, as each asset and liability has distinct liquidity characteristics. Some liabilities are surrenderable, while some assets - such as private placements, mortgage loans, real estate, and limited partnerships - are less liquid. If Aegon needs substantial cash beyond normal requirements and available credit facilities, it may struggle to sell these assets in the short term or at attractive prices. Liquidity risk is also affected by the use of collateralized derivatives to mitigate other risks.
Aegon\u2019s Liquidity Risk Policy requires country units to maintain sufficient levels of highly liquid assets to meet cash demands by policyholders and account holders over two years. Potential cash demands are assessed under stress scenarios including rising interest rates, multiple downgrades of the Group's credit rating, and spikes in disintermediation (or lapses). At the same time, the liquidity of non-cash and non-government assets is assumed to be severely impaired. All legal entities and the Group must maintain sufficient liquidity to meet obligations under these extreme scenarios.
Aegon held EUR 13,976 million of investments in cash, money market products, and government bonds that are readily saleable or redeemable on demand (2024: EUR 16,291 million, excluding the investments of the disposal group). The\u00a0Group expects to meet its obligations, even during a stressed liquidity event, from operating cash flows, the proceeds of maturing assets, and these highly liquid assets. Further, the Group has access to back-up credit facilities, as disclosed in\u00a0note 31 Borrowings, amounting to EUR 1,351 million which were unused at the end of the reporting period (2024:\u00a0EUR 1,544 million).
The maturity analysis on the next page 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, 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 a notice period is specified, it has been assumed that notice is given immediately, and the repayment has been presented for 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 disclosed amount may be based on the index level as of the reporting date.
To manage liquidity risk arising from financial liabilities, Aegon holds liquid assets, including cash and cash equivalents and investment-grade securities for which there is an active, 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 flows in the table below (Maturity analysis \u2013 insurance and reinsurance contracts) reflect management\u2019s best estimates of gross benefits and expenses, partially offset by expected premiums, fees, and charges from in-force business.
These estimates are based on assumptions from Aegon\u2019s historical experience and on recent trends. Actual payments may differ if experience varies from these assumptions. The projections are presented on an undiscounted, pre-tax, and pre-reinsurance basis.
\nThe following tables provide a maturity analysis of Aegon\u2019s insurance and reinsurance contracts, which reflects the dates on\u00a0which the cash flows are expected to occur. The undiscounted net cash flows below represent the undiscounted best estimate liability for the relevant periods.
| \n \n Undiscounted best estimate liability | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \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 participation contracts | \n \n \n 10,502 | \n \n \n 9,904 | \n \n \n 9,237 | \n \n \n 8,684 | \n \n \n 8,567 | \n \n \n 132,619 | \n \n \n 179,513 | \n
| \n \n - Without direct participation contracts | \n \n \n 2,455 | \n \n \n 2,288 | \n \n \n 2,330 | \n \n \n 2,438 | \n \n \n 2,531 | \n \n \n 160,468 | \n \n \n 172,510 | \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 participation contracts | \n \n \n 2,136 | \n \n \n 2,028 | \n \n \n 1,859 | \n \n \n 1,660 | \n \n \n 1,614 | \n \n \n 21,208 | \n \n \n 30,505 | \n
| \n \n Reinsurance contracts liability | \n \n \n 10 | \n \n \n 11 | \n \n \n 11 | \n \n \n 12 | \n \n \n 12 | \n \n \n 306 | \n \n \n 362 | \n
| \n \n Total | \n \n \n 15,103 | \n \n \n 14,230 | \n \n \n 13,437 | \n \n \n 12,794 | \n \n \n 12,725 | \n \n \n 314,602 | \n \n \n 382,890 | \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 participation 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 3,238 | \n \n \n 2,962 | \n \n \n 2,777 | \n \n \n 2,782 | \n \n \n 2,849 | \n \n \n 170,682 | \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 participation 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 liability | \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 15,224 | \n \n \n 14,821 | \n \n \n 14,261 | \n \n \n 13,376 | \n \n \n 13,239 | \n \n \n 351,920 | \n \n \n 422,841 | \n
| \n \n Expected release of risk adjustment | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \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 participation contracts | \n \n \n 35 | \n \n \n 31 | \n \n \n 27 | \n \n \n 27 | \n \n \n 26 | \n \n \n 328 | \n \n \n 474 | \n
| \n \n - Without direct participation contracts | \n \n \n 41 | \n \n \n 37 | \n \n \n 38 | \n \n \n 40 | \n \n \n 41 | \n \n \n 2,464 | \n \n \n 2,660 | \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 participation contracts | \n \n \n 10 | \n \n \n 9 | \n \n \n 7 | \n \n \n 7 | \n \n \n 7 | \n \n \n 57 | \n \n \n 97 | \n
| \n \n Reinsurance contracts liability | \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 \n \n (2) \n | \n \n \n \n \n (22) \n | \n \n \n \n \n (30) \n | \n
| \n \n Total | \n \n \n 84 | \n \n \n 76 | \n \n \n 70 | \n \n \n 72 | \n \n \n 72 | \n \n \n 2,827 | \n \n \n 3,201 | \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 participation 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 participation 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 Reinsurance contracts liability | \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
For liquidity risk arising from contracts within the scope of IFRS\u202f17, Aegon shows in below table the amounts that are payable on demand, disclosing the relationship between such amounts and the carrying amount of the related portfolios of contracts.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||
| \n \n Liabilities arising from (re)insurance contracts | \n \n \n Amount payable on demand | \n \n \n Carrying amount | \n \n \n Amount payable on demand | \n \n \n Carrying amount | \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 - Direct participation contracts | \n \n \n 122,098 | \n \n \n 128,354 | \n \n \n 129,566 | \n \n \n 136,033 | \n
| \n \n - Without direct participation contracts | \n \n \n 37,919 | \n \n \n 47,269 | \n \n \n 40,782 | \n \n \n 50,767 | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n 1 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 160,018 | \n \n \n 175,624 | \n \n \n 170,348 | \n \n \n 186,801 | \n
Most Aegon insurance products and investment contracts with discretionary participation features include investment-related or investment-return services, under which policyholders may surrender or early terminate their contracts to receive their current account value, net of contractual penalties, after a specified notional period. The current account value reflects the\u00a0fair 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 tables present the Group's maturity analysis for its financial instruments, based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on\u00a0a gross and net\u00a0basis. Also, the gross undiscounted inflows and outflows on non-derivatives.
| \n \n Derivatives - Undiscounted contractual cash flows 1 | \n \n \n On demand | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 893 | \n \n \n 192 | \n \n \n 141 | \n \n \n 175 | \n \n \n 128 | \n \n \n 1,867 | \n \n \n 3,395 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (839) \n | \n \n \n \n \n (176) \n | \n \n \n \n \n (126) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (116) \n | \n \n \n \n \n (1,742) \n | \n \n \n \n \n (3,180) \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 449 | \n \n \n 308 | \n \n \n 299 | \n \n \n 235 | \n \n \n 241 | \n \n \n 4,348 | \n \n \n 5,881 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (436) \n | \n \n \n \n \n (280) \n | \n \n \n \n \n (237) \n | \n \n \n \n \n (221) \n | \n \n \n \n \n (223) \n | \n \n \n \n \n (7,828) \n | \n \n \n \n \n (9,224) \n | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 Non-derivatives - Undiscounted gross contractual cash flows | \n \n \n On demand | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \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 83 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 61 | \n \n \n 156 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 78 | \n \n \n 78 | \n \n \n 59 | \n \n \n 40 | \n \n \n 40 | \n \n \n 2,234 | \n \n \n 2,529 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 94 | \n \n \n 713 | \n \n \n 48 | \n \n \n 48 | \n \n \n 48 | \n \n \n 1,004 | \n \n \n 1,956 | \n
| \n \n Investment contracts | \n \n \n 38,487 | \n \n \n 58,621 | \n \n \n 104 | \n \n \n 21 | \n \n \n 3 | \n \n \n 12 | \n \n \n 41 | \n \n \n 97,290 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 31 | \n \n \n 28 | \n \n \n 26 | \n \n \n 22 | \n \n \n 17 | \n \n \n 96 | \n \n \n 219 | \n
| \n \n Other financial liabilities | \n \n \n 2,877 | \n \n \n 1,099 | \n \n \n 36 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,016 | \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
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 various risks, primarily from financial market fluctuations (for example, foreign currency, interest rate, credit, and equity risks) that impact investment values and product liabilities. Additional risks include insurance-related factors such as changes in mortality, morbidity, bond credit spreads, and liquidity premiums, detailed in note\u00a029 Insurance contracts. Risk is managed locally where business occurs, guided by Group-level principles and policies. Aegon's integrated approach to risk\u00a0management involves similar measurement of risk and scope of risk coverage to enable aggregation of the Group's risk\u00a0position.
To manage financial market risks, products are priced using a market-consistent framework, and asset liability management (ALM) programs seek to ensure prudent long-term investment to policyholder. ALM techniques across the Group vary in 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 risk exposure, Aegon has both group-wide and specific local risk policies to handle 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 guide and set limits for the aggregated product-level programs. Significant or complex ALM strategies are approved at\u00a0group level, and all programs are\u00a0subject to Group Risk oversight.
Together with the ICRP, other ERM policies govern concentration risk, liquidity risk, the use of derivatives and securities lending and repos. Aegon\u2019s extensive use of derivatives can lead to significant collateral calls depending on market conditions. Liquidity is managed at the legal entity, with central coordination by Aegon Ltd. 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\u2019s Derivative Use Policy establishes the requirements for the control, authorization, execution and monitoring requirements of derivatives. It\u00a0also stipulates the necessary mitigation of credit risk through derivatives management tools. For derivatives, counterparty credit risk is typically mitigated through collateral posting under credit support annexes or central clearing houses.
As part of its risk management programs, Aegon takes inventory of its current risk position across risk categories and\u00a0measures the sensitivity of net result and shareholders' equity under both deterministic and stochastic scenarios. Models,\u00a0scenarios, and assumptions are regularly reviewed and updated as needed.
Aegon\u2019s sensitivity analyses are presented throughout this section to show the estimated impact of various scenarios on CSM, net result, and shareholders\u2019 equity. It also shows how the tested shock could affect management\u2019s key accounting estimates and judgments under Aegon\u2019s policies. 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 changes to policies and procedures are not considered.
Market-consistent assumptions underlying the measurement of non-listed assets and liabilities are adjusted to reflect the\u00a0shock tested. The\u00a0shock 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 a risk factor is reasonably likely to change,
long-term assumptions will generally not be revised unless there is evidence that the change is permanent.
The sensitivities do not reflect what the net result would have been if risk variables had differed, as they are based on exposures on the reporting date, not actual events during the year. Nor are they intended to predict Aegon\u2019s future shareholders\u2019 equity or earnings, as the analysis excludes future new business and does not consider all potential management responses to financial environment changes, such as investment portfolio reallocations or changes to premiums and crediting rates. Furthermore, the\u00a0results of the analyses cannot be extrapolated or interpolated to wider variations, as effects do not tend to be\u00a0linear.
Concentration risk for financial risks is measured and managed at the following levels:
Concentration by risk type: Risk exposures are measured by risk type as part of Aegon\u2019s internal economic framework. A\u00a0risk\u00a0tolerance framework is in place which sets risk limits per risk type to target the 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 into 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 carried out by the insurance operating companies.
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\u00a0note 4.2 Credit risk\u00a0note 4.3 Market risk\u00a0and in\u00a0note 4.4 Liquidity risk.
\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 has policies and procedures to manage credit, concentration, and counterparty risks across all material businesses with credit exposure, including bonds, loans, cash and equivalents, collateralized assets, reinsurance assets, and fair value assets. The Group uses risk gradings aligned with major credit rating agencies and applies internal gradings for specific portfolios, such as residential mortgages, to assess the probability of default.
Credit grades are calibrated so that default risk increases exponentially with each higher risk grade. For\u00a0example, the difference in Probability of Default (PD) between the AAA and A rating grades is lower than between the BBB and B rating grades.
\nAs premiums and deposits are received, Aegon invests these funds to meet future policyholder obligations. For assets backing insurance liabilities under the general model and the premium allocation approach, as well as other \"free\" assets, Aegon typically bears the investment risk, including principal and interest.
Aegon\u00a0is exposed to credit risk on its fixed-income portfolio (debt securities, mortgages, private placements), over-the-counter derivatives, and reinsurance contracts. Some issuers have defaulted due to bankruptcy, liquidity issues, economic or real estate downturns, operational failure, or fraud. During financial downturns, Aegon can incur defaults or other value declines, which could materially impact Aegon\u2019s business and financial results and condition adversely.
The estimates of best estimate liability for (re)insurance contract assets represent Aegon\u2019s maximum exposure to credit risk from these assets. Please see the cash flow information in note 29\u00a0Insurance contracts.
The following table contains an analysis of Aegon\u2019s maximum credit risk exposure from financial assets.\u00a0Please\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\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 Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 56,202 | \n \n \n - | \n \n \n - | \n \n \n 53 | \n \n \n - | \n \n \n - | \n \n \n 53 | \n \n \n - | \n \n \n 56,149 | \n
| \n \n Money market and other short-term investments | \n \n \n 5,964 | \n \n \n - | \n \n \n 289 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 289 | \n \n \n 22 | \n \n \n 5,696 | \n
| \n \n Loans | \n \n \n 9,787 | \n \n \n 112 | \n \n \n - | \n \n \n 23 | \n \n \n 21,460 | \n \n \n - | \n \n \n 21,594 | \n \n \n 11,808 | \n \n \n 1 | \n
| \n \n Unconsolidated investment funds | \n \n \n 190,671 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 190,671 | \n
| \n \n Deposits with financial institutes | \n \n \n 1,727 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,727 | \n
| \n \n Other investments | \n \n \n 4,749 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,749 | \n
| \n \n Derivative assets | \n \n \n 485 | \n \n \n 124 | \n \n \n 513 | \n \n \n - | \n \n \n - | \n \n \n 213 | \n \n \n 850 | \n \n \n 406 | \n \n \n 42 | \n
| \n \n Reinsurance assets | \n \n \n 17,153 | \n \n \n - | \n \n \n 15,363 | \n \n \n 731 | \n \n \n - | \n \n \n - | \n \n \n 16,093 | \n \n \n - | \n \n \n 1,060 | \n
| \n \n On December 31, 2025 | \n \n \n 286,739 | \n \n \n 236 | \n \n \n 16,165 | \n \n \n 807 | \n \n \n 21,460 | \n \n \n 213 | \n \n \n 38,880 | \n \n \n 12,236 | \n \n \n 260,095 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 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 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 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 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 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 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 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 14,872 | \n \n \n - | \n \n \n 1,149 | \n
| \n \n On December 31, 2024 | \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 40,127 | \n \n \n 13,462 | \n \n \n 267,932 | \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 money market and short-term investments relates 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.
\nReal estate collateral for mortgages includes both residential and commercial properties. For commercial mortgage loans in Aegon Americas, collateral is measured at fair value. At least annually, the fair value of each individual property pledged as collateral is estimated. At loan origination, an external appraisal is used to estimate the property's value. In subsequent years, internal valuations are conducted using professionally accepted methods by accredited personnel. International valuation standards are used, which consider key assumptions such as replacement cost, income-generating potential, and recent sales of comparable properties. Valuations are primarily supported by market evidence.
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.
\nA significant portion of instruments have been designated as FVPL. On December 31, 2025, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 2,048 million (December 2024: EUR\u00a02,337 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following table presents changes in\u00a0fair value attributable to changes in credit risk, recognized for these investments:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n | \n\n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value during the year | \n \n \n 1 | \n \n \n 7 | \n \n \n 8 | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value | \n \n \n - | \n \n \n 45 | \n \n \n 45 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \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 method reasonably approximates credit risk impact, as fixed income valuations are primarily influenced by interest rates and credit spreads. Thus,\u00a0isolating non-credit factors allows for an estimate of credit-related fair value changes.
\nThe master netting agreements column in the table pertains to derivative liability positions that are used in Aegon's credit risk management. The offset in the master netting agreements column includes balances for which there is a legally enforceable right of offset, but no intention to settle them 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 for the reinsurance assets includes assets held in trust by the reinsurer for Aegon's benefit. Trust assets can be accessed to pay policyholder benefits if reinsurers fail to perform under their contracts. 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.
\nOn December 31, 2025, the Group held no collateral that was obtained during the year (EUR 0 in 2024) 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 non-cash collateral for its own operations.
\nAegon manages credit risk by counterparty, sector, and asset class, including cash. Credit risk in derivative contracts is typically mitigated through credit support agreements and ISDA master netting agreements across most of Aegon's legal entities, enabling offsetting of exposures. Main counterparties are investment banks, generally rated \u201cA\u201d or higher. These agreements define collateral thresholds, with most collateralized transactions involving interest rate, equity, currency, and credit swaps. Collateral, mainly in USD and EUR cash, must meet high-quality standards. No derivative counterparty defaults occurred in the past three years. Credit risk under master netting agreements is offset only when liabilities are settled after asset realization. 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 the 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 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 the group level and the individual country units. If an exposure exceeds the stated limit, it must be reduced to the limit for the country unit and rating category as soon as possible. Exceptions to these limits may be made only with explicit approval from Aegon's\u00a0Group Risk and Capital Committee (GRCC). The policy is reviewed regularly.
To hedge inflation risk in products offered to policyholders, Aegon invests in instruments linked to inflation, significantly reducing net exposure.
\nSince Aegon changed its policies in 2025, Group limits are denominated in US Dollar instead of Euro. Aegon group level long-term counterparty exposure limits are as follows:
| \n \n Group limits per credit rating | \n \n \n 2025 USD million | \n \n \n 2024 EUR million | \n
| \n \n AAA | \n \n \n 750 | \n \n \n 900 | \n
| \n \n AA | \n \n \n 750 | \n \n \n 900 | \n
| \n \n A | \n \n \n 575 | \n \n \n 675 | \n
| \n \n BBB | \n \n \n 375 | \n \n \n 450 | \n
| \n \n BB | \n \n \n 225 | \n \n \n 250 | \n
| \n \n B | \n \n \n 110 | \n \n \n 125 | \n
| \n \n CCC or lower | \n \n \n 45 | \n \n \n 50 | \n
The ratings distribution of Aegon\u2019s general account portfolios \u2014 excluding reinsurance assets \u2014 is shown in the following table, categorized by rating and split by assets measured at fair value and amortized cost. Aegon applies a composite rating based on external ratings from S&P, Moody\u2019s, Fitch, and the National Association of Insurance Commissioners (NAIC for U.S. assets), along with internal ratings. The lower of the external and internal ratings is used.
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n 2025 Total 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 Carrying value | \n
| \n \n AAA | \n \n \n 847 | \n \n \n 5,625 | \n \n \n - | \n \n \n 30 | \n \n \n - | \n \n \n 40 | \n \n \n - | \n \n \n 127 | \n \n \n 847 | \n \n \n 5,822 | \n \n \n 6,669 | \n
| \n \n AA | \n \n \n 4,023 | \n \n \n 7,916 | \n \n \n - | \n \n \n 416 | \n \n \n - | \n \n \n 130 | \n \n \n - | \n \n \n - | \n \n \n 4,023 | \n \n \n 8,462 | \n \n \n 12,485 | \n
| \n \n A | \n \n \n 4,319 | \n \n \n 18,580 | \n \n \n - | \n \n \n 217 | \n \n \n 1 | \n \n \n 694 | \n \n \n 24 | \n \n \n - | \n \n \n 4,355 | \n \n \n 19,491 | \n \n \n 23,846 | \n
| \n \n BBB | \n \n \n 423 | \n \n \n 18,406 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 346 | \n \n \n 3 | \n \n \n - | \n \n \n 426 | \n \n \n 18,756 | \n \n \n 19,182 | \n
| \n \n BB | \n \n \n - | \n \n \n 984 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 22 | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n \n \n 1,007 | \n \n \n 1,007 | \n
| \n \n B | \n \n \n 93 | \n \n \n 262 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 8 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n 277 | \n \n \n 370 | \n
| \n \n CCC or lower | \n \n \n - | \n \n \n 569 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 8 | \n \n \n - | \n \n \n 8 | \n \n \n 570 | \n \n \n 577 | \n
| \n \n Assets not rated | \n \n \n - | \n \n \n 4,349 | \n \n \n - | \n \n \n 744 | \n \n \n - | \n \n \n 24 | \n \n \n - | \n \n \n 68 | \n \n \n - | \n \n \n 5,189 | \n \n \n 5,189 | \n
| \n \n Total | \n \n \n 9,704 | \n \n \n 56,690 | \n \n \n - | \n \n \n 1,420 | \n \n \n 1 | \n \n \n 1,266 | \n \n \n 36 | \n \n \n 194 | \n \n \n 9,752 | \n \n \n 59,574 | \n \n \n 69,326 | \n
| \n \n ECL on financial assets | \n \n \n \n \n (33) \n | \n \n \n \n \n (340) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n \n \n (347) \n | \n \n \n \n \n (380) \n | \n
| \n \n On December 31, 2025 | \n \n \n 9,671 | \n \n \n 56,690 | \n \n \n - | \n \n \n 1,420 | \n \n \n 1 | \n \n \n 1,266 | \n \n \n 36 | \n \n \n 194 | \n \n \n 9,719 | \n \n \n 59,574 | \n \n \n 69,293 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n||
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 Total 1 | \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
The following table shows the credit quality of the reinsurance contracts:
| \n \n Carrying value | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n - | \n \n \n - | \n
| \n \n AA | \n \n \n 1,008 | \n \n \n 1,087 | \n
| \n \n A | \n \n \n 14,832 | \n \n \n 14,041 | \n
| \n \n Below A | \n \n \n 208 | \n \n \n 3 | \n
| \n \n Not rated | \n \n \n 910 | \n \n \n 587 | \n
| \n \n On December 31 | \n \n \n 16,958 | \n \n \n 15,719 | \n
The following tables present specific credit risk concentration information for general account financial assets.
| \n \n Debt securities and | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n 2025 Total 1 | \n \n \n Of which past due and/or impaired | \n
| \n \n \n \n Residential mortgage-backed securities (RMBSs) \n | \n \n \n 827 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 827 | \n \n \n \n \n (16) \n | \n
| \n \n \n \n Commercial mortgage-backed securities (CMBSs) \n | \n \n \n 2,419 | \n \n \n 26 | \n \n \n 34 | \n \n \n - | \n \n \n 2,479 | \n \n \n \n \n (40) \n | \n
| \n \n \n \n Asset-backed securities (ABSs) \n | \n \n \n 616 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 617 | \n \n \n \n \n (1) \n | \n
| \n \n ABSs \u2013 Other | \n \n \n 5,820 | \n \n \n 43 | \n \n \n 26 | \n \n \n 102 | \n \n \n 5,991 | \n \n \n \n \n (29) \n | \n
| \n \n Financial - Banking | \n \n \n 3,261 | \n \n \n 165 | \n \n \n 190 | \n \n \n - | \n \n \n 3,616 | \n \n \n \n \n (15) \n | \n
| \n \n Financial - Other | \n \n \n 9,831 | \n \n \n 54 | \n \n \n 158 | \n \n \n 100 | \n \n \n 10,144 | \n \n \n \n \n (53) \n | \n
| \n \n Capital goods and other industry | \n \n \n 3,273 | \n \n \n 18 | \n \n \n 76 | \n \n \n - | \n \n \n 3,366 | \n \n \n \n \n (41) \n | \n
| \n \n Communications & Technology | \n \n \n 3,879 | \n \n \n 11 | \n \n \n 77 | \n \n \n - | \n \n \n 3,967 | \n \n \n \n \n (44) \n | \n
| \n \n Consumer cyclical | \n \n \n 3,354 | \n \n \n 9 | \n \n \n 100 | \n \n \n - | \n \n \n 3,463 | \n \n \n \n \n (35) \n | \n
| \n \n Consumer non-cyclical | \n \n \n 5,062 | \n \n \n 38 | \n \n \n 116 | \n \n \n - | \n \n \n 5,216 | \n \n \n \n \n (33) \n | \n
| \n \n Energy | \n \n \n 2,325 | \n \n \n 10 | \n \n \n 41 | \n \n \n - | \n \n \n 2,376 | \n \n \n \n \n (12) \n | \n
| \n \n Transportation | \n \n \n 1,658 | \n \n \n 4 | \n \n \n 20 | \n \n \n - | \n \n \n 1,682 | \n \n \n \n \n (6) \n | \n
| \n \n Utility | \n \n \n 3,902 | \n \n \n 2 | \n \n \n 37 | \n \n \n - | \n \n \n 3,941 | \n \n \n \n \n (10) \n | \n
| \n \n Government bonds | \n \n \n 5,762 | \n \n \n 302 | \n \n \n 293 | \n \n \n 17 | \n \n \n 6,374 | \n \n \n \n \n (13) \n | \n
| \n \n On December 31, 2025 | \n \n \n 51,990 | \n \n \n 682 | \n \n \n 1,169 | \n \n \n 220 | \n \n \n 54,060 | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n \n 2024 Total 1 | \n \n | \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 \n \n Asset-backed securities (ABSs) \n | \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 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 2025 | \n \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n \n \n 2024 | \n
| \n \n United States | \n \n \n 5,017 | \n \n \n 2 | \n \n \n 64 | \n \n \n - | \n \n \n 5,084 | \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 - | \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 257 | \n \n \n - | \n \n \n 17 | \n \n \n 275 | \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 9 | \n \n \n - | \n \n \n 9 | \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 3 | \n \n \n - | \n \n \n 3 | \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 18 | \n \n \n 8 | \n \n \n - | \n \n \n 25 | \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 19 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 21 | \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 63 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 63 | \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 6 | \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 188 | \n \n \n - | \n \n \n 188 | \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 76 | \n \n \n - | \n \n \n 8 | \n \n \n - | \n \n \n 84 | \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 586 | \n \n \n 19 | \n \n \n 7 | \n \n \n - | \n \n \n 612 | \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 | \n \n \n 5,762 | \n \n \n 302 | \n \n \n 293 | \n \n \n 17 | \n \n \n 6,374 | \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 rating * | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n 2025 | \n \n \n Government Bonds | \n \n \n Corporate bonds | \n \n \n RMBSs CMBSs ABSs | \n \n \n Other | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n 160 | \n \n \n 536 | \n \n \n 3,407 | \n \n \n 1,708 | \n \n \n 5,811 | \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 4,754 | \n \n \n 2,413 | \n \n \n 1,200 | \n \n \n - | \n \n \n 8,367 | \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 777 | \n \n \n 14,804 | \n \n \n 3,573 | \n \n \n - | \n \n \n 19,154 | \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 402 | \n \n \n 17,264 | \n \n \n 1,059 | \n \n \n - | \n \n \n 18,725 | \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 247 | \n \n \n 672 | \n \n \n 83 | \n \n \n - | \n \n \n 1,002 | \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 19 | \n \n \n 171 | \n \n \n 154 | \n \n \n - | \n \n \n 345 | \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 15 | \n \n \n 103 | \n \n \n 439 | \n \n \n - | \n \n \n 557 | \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 94 | \n \n \n 94 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 83 | \n \n \n 83 | \n
| \n \n On December 31 | \n \n \n 6,374 | \n \n \n 35,963 | \n \n \n 9,914 | \n \n \n 1,802 | \n \n \n 54,054 | \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 Mortgage loans | \n \n \n Americas | \n \n \n International | \n \n \n 2025 | \n \n \n Of which past due and / or impaired | \n \n \n Americas | \n \n \n International | \n \n \n 2024 | \n \n \n Of which past due and/or impaired | \n
| \n \n Agricultural | \n \n \n 40 | \n \n \n - | \n \n \n 40 | \n \n \n \n \n (1) \n | \n \n \n 47 | \n \n \n - | \n \n \n 47 | \n \n \n - | \n
| \n \n Apartment | \n \n \n 4,954 | \n \n \n - | \n \n \n 4,954 | \n \n \n \n \n (5) \n | \n \n \n 5,618 | \n \n \n - | \n \n \n 5,618 | \n \n \n \n \n (8) \n | \n
| \n \n Industrial | \n \n \n 455 | \n \n \n - | \n \n \n 455 | \n \n \n - | \n \n \n 474 | \n \n \n - | \n \n \n 474 | \n \n \n - | \n
| \n \n Office | \n \n \n 1,105 | \n \n \n - | \n \n \n 1,105 | \n \n \n \n \n (27) \n | \n \n \n 1,270 | \n \n \n - | \n \n \n 1,270 | \n \n \n \n \n (109) \n | \n
| \n \n Retail | \n \n \n 1,257 | \n \n \n - | \n \n \n 1,257 | \n \n \n - | \n \n \n 1,384 | \n \n \n - | \n \n \n 1,384 | \n \n \n \n \n (1) \n | \n
| \n \n Other commercial | \n \n \n 1,942 | \n \n \n 1 | \n \n \n 1,943 | \n \n \n - | \n \n \n 1,885 | \n \n \n 1 | \n \n \n 1,886 | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 9,753 | \n \n \n 1 | \n \n \n 9,754 | \n \n \n \n \n (33) \n | \n \n \n 10,679 | \n \n \n 1 | \n \n \n 10,680 | \n \n \n \n \n (118) \n | \n
Aegon\u2019s investments in unconsolidated structured entities \u2014 such as RMBSs, CMBSs, ABSs, and investment funds \u2014 are reported under \u201cInvestments\u201d on the statement of financial position. These interests are basic interests. Aegon holds no related loans, derivatives, guarantees, or other interests relating to these investments.
For RMBSs, CMBSs, and ABSs, Aegon\u2019s maximum exposure to loss equals the carrying amount, as shown in the credit risk concentration table for debt securities and money market investments. To manage credit risk, Aegon primarily invests in senior notes of these instruments. The portfolios are broadly diversified by issuer, resulting in only non-controlling interests in\u00a0individual unconsolidated structured entities. Additionally, Aegon does not originate these investments.
As the collateral manager of collateralized loan obligations (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 in the form of participation in the subordinated tranches of the structure, which concentrate credit risk on the underlying assets of the CLO. Aegon\u2019s maximum exposure to credit risk is the carrying amount of these investments, which was EUR\u00a0190,671 million on December 31, 2025 (2024: EUR 192,775 million).
Except for commitments, such as future purchases in investment funds, as disclosed in note 39 Commitments and contingencies,\u00a0Aegon did not provide, nor is it required to provide financial or other support to unconsolidated structured entities. Aegon also has no intention to offer such support to entities in which it currently holds or previously held an interest.
For RMBSs, CMBSs, and ABSs\u00a0in which Aegon has an interest at the 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\u00a0financial position of Aegon's interests in RMBSs, CMBSs, and ABSs.
| \n | \n\n | \n\n \n 2025 | \n \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n Interest income | \n \n \n Gains/(losses) on sale | \n \n \n Total Income | \n \n \n Investments | \n \n \n Interest income | \n \n \n Gains/(losses) on sale | \n \n \n Total Income | \n \n \n Investments | \n
| \n \n RMBSs | \n \n \n 57 | \n \n \n 7 | \n \n \n 64 | \n \n \n 827 | \n \n \n 58 | \n \n \n \n \n (13) \n | \n \n \n 45 | \n \n \n 684 | \n
| \n \n CMBSs | \n \n \n 115 | \n \n \n 87 | \n \n \n 202 | \n \n \n 2,479 | \n \n \n 97 | \n \n \n 98 | \n \n \n 194 | \n \n \n 2,582 | \n
| \n \n ABSs | \n \n \n 33 | \n \n \n - | \n \n \n 33 | \n \n \n 617 | \n \n \n 38 | \n \n \n 12 | \n \n \n 50 | \n \n \n 585 | \n
| \n \n ABSs - Other | \n \n \n 296 | \n \n \n 114 | \n \n \n 410 | \n \n \n 5,991 | \n \n \n 206 | \n \n \n 58 | \n \n \n 264 | \n \n \n 4,952 | \n
| \n \n Total | \n \n \n 501 | \n \n \n 208 | \n \n \n 708 | \n \n \n 9,914 | \n \n \n 399 | \n \n \n 155 | \n \n \n 554 | \n \n \n 8,802 | \n
Credit risk losses are inherent to fixed-income securities. The level of this risk and the compensation for bearing it are related. A\u00a0key\u00a0management measure to avoid excessive credit risk is to diversify and limit exposure to individual issuers.
Aegon measures credit risk in line with the IFRS 9 approach for Expected Credit Loss (ECL). ECL is calculated as the product of\u00a0the projected probability of default (PD), the loss given default (LGD), and the exposure at default (EAD), discounted at an\u00a0appropriate rate. ECL is then determined as the probability-weighted, discounted credit loss across multiple scenarios (for\u00a0example,\u00a0base, positive, adverse).
\nAegon uses the \"three-stage\" model for impairment as outlined in IFRS 9, based on relative changes in credit quality since initial recognition. The table below shows the characteristics of the three stages.
| \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 the staging of financial instruments, Aegon incorporates multiple, forward looking macro- scenarios to drive the\u00a0ECL\u00a0provision. Forward-looking inputs used to measure ECLs must align with those used to assess significant increases in\u00a0credit\u00a0risk.
The Group uses different models to calculate ECL across asset classes. The following sections outline the Group\u2019s key judgments and assumptions for each model.
For bonds and private placements, the Group uses a global correlation model that links credit quality movements across asset classes to macroeconomic trends. This model determines conditional PD and LGD under specific macroeconomic scenarios. Unconditional PD and LGD curves are developed using distinct methods for sovereign debt, corporate bonds, and\u00a0private placements.
For commercial mortgage loans and mortgage-backed securities, parameters are estimated using commercial mortgage metrics. These build on corporate bond PD and LGD estimates, adjusted for factors like debt service coverage and loan-to-value ratios.
Asset-backed securities are modeled separately, with instruments pooled by collateral type, and credit-loss parameters estimated collectively. For collateralized debt (loan) obligations (CDOs and CLOs), different models are applied depending on\u00a0the region of the exposure.
The following tables contain an analysis of Aegon\u2019s credit risk exposure for debt instruments and loans for which an ECL allowance is\u00a0recognized.\u00a0All asset categories not presented here are\u00a0determined to have non-material credit risk or to be of\u00a0a\u00a0short-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 Financial assets | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n 3,843 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,843 | \n \n \n 3,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,295 | \n
| \n \n AA | \n \n \n 7,787 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 7,788 | \n \n \n 9,100 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 9,101 | \n
| \n \n A | \n \n \n 18,394 | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 18,403 | \n \n \n 19,443 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19,443 | \n
| \n \n BBB | \n \n \n 18,050 | \n \n \n 84 | \n \n \n - | \n \n \n 1 | \n \n \n 18,135 | \n \n \n 20,724 | \n \n \n 7 | \n \n \n - | \n \n \n 1 | \n \n \n 20,732 | \n
| \n \n BB | \n \n \n 810 | \n \n \n 124 | \n \n \n - | \n \n \n - | \n \n \n 934 | \n \n \n 949 | \n \n \n 157 | \n \n \n - | \n \n \n - | \n \n \n 1,106 | \n
| \n \n B | \n \n \n 150 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 245 | \n \n \n 361 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 456 | \n
| \n \n CCC and lower | \n \n \n 48 | \n \n \n 55 | \n \n \n 221 | \n \n \n 74 | \n \n \n 398 | \n \n \n 85 | \n \n \n 79 | \n \n \n 289 | \n \n \n 91 | \n \n \n 544 | \n
| \n \n Net carrying amount | \n \n \n 49,082 | \n \n \n 358 | \n \n \n 232 | \n \n \n 75 | \n \n \n 49,747 | \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 Expected credit loss | \n \n \n \n \n (189) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \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 Loans at | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n Internal grade 1 | \n \n \n 847 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 847 | \n \n \n 977 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 1,013 | \n
| \n \n Internal grade 2 | \n \n \n 4,023 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,023 | \n \n \n 4,410 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n
| \n \n Internal grade 3 | \n \n \n 4,304 | \n \n \n 15 | \n \n \n - | \n \n \n - | \n \n \n 4,319 | \n \n \n 4,539 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 4,546 | \n
| \n \n Internal grade 4 | \n \n \n 413 | \n \n \n 7 | \n \n \n 3 | \n \n \n - | \n \n \n 423 | \n \n \n 644 | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 654 | \n
| \n \n Internal grade 5 | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n 4 | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 81 | \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 9,587 | \n \n \n 115 | \n \n \n 3 | \n \n \n - | \n \n \n 9,705 | \n \n \n 10,573 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n
| \n \n Expected credit loss | \n \n \n \n \n (11) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (33) \n | \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 | \n \n \n 9,575 | \n \n \n 94 | \n \n \n 2 | \n \n \n - | \n \n \n 9,672 | \n \n \n 10,535 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n
Aegon considers a financial instrument to have experienced an SICR 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 Financial guarantees | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \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 increase in credit risk relative to origination.\u00a0The absolute threshold defines a stage for each rating and is primarily used when the rating at origination is unavailable or when an instrument is already in default. The relative PD thresholds can be converted into rating-based thresholds using Moody\u2019s\u00a0standard rating to PD mappings. The\u00a0difference between the PD at\u00a0origination and the PD corresponding to the threshold determines the number of notches that the rating must drop by. For\u00a0example, for a one-year-old instrument with a one-year remaining maturity this gives the following result:
\n\nAegon groups PD values into ranges, shown in the table below. Each range includes minimum and maximum PDs for financial and corporate assets with maturities from 1 to 10 years. As Aegon US best represents the Group, PD data for the Americas is\u00a0presented.
| \n | \n\n | \n\n \n 2025 | \n \n | \n\n \n 2024 | \n
| \n \n PD range | \n \n \n Minimum | \n \n \n Maximum | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0001 | \n \n \n 0.0018 | \n \n \n 0.0001 | \n \n \n 0.0021 | \n
| \n \n AA | \n \n \n 0.0002 | \n \n \n 0.0031 | \n \n \n 0.0002 | \n \n \n 0.0034 | \n
| \n \n A | \n \n \n 0.0006 | \n \n \n 0.0050 | \n \n \n 0.0006 | \n \n \n 0.0052 | \n
| \n \n BBB | \n \n \n 0.0016 | \n \n \n 0.0079 | \n \n \n 0.0017 | \n \n \n 0.0079 | \n
| \n \n BB | \n \n \n 0.0048 | \n \n \n 0.0133 | \n \n \n 0.0048 | \n \n \n 0.0131 | \n
| \n \n B | \n \n \n 0.0117 | \n \n \n 0.0320 | \n \n \n 0.0120 | \n \n \n 0.0307 | \n
| \n \n CCC or lower | \n \n \n 0.0209 | \n \n \n 1.0000 | \n \n \n 0.0196 | \n \n \n 1.0000 | \n
For debt securities, private loans, structured finance securities and deposits with financial institutions the watchlist approach is applied as an additional qualitative criterion. Instruments on the watchlist are closely monitored. Assets are added to the watchlist if their 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. For debt securities and private loans, this assessment is performed at the counterparty level and on a periodic basis. The Group periodically reviews the criteria used to identify SICR for\u00a0appropriateness. For loan commitments and financial guarantees, Aegon defines default consistently with the related loan or financial instrument, considering the same risk factors.
\nA backstop is applied to exposures deemed to have experienced an SICR when the borrower is more than 30 days past due on contractual payments in structured finance and 60 days in commercial mortgage loans. No\u00a0backstop is applied to the other asset classes.
\nAegon has used the low credit risk exemption for debt instruments. Debt instruments that have a credit rating of \"investment grade\" (rating \"BBB\" or higher) are considered to have low credit risk. External and internal credit ratings are used, respectively, to assess whether an SICR has occurred for these assets.
\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 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 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 Financial guarantee contracts | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n
In addition to the criteria in the table above, Aegon identifies other indicators of unlikelihood of payment, such as a lack of future ability to generate cash flows, concerns about sources of recurring income, increased overall leverage of the borrower, material fraud, or the death of a client.
All the criteria above have been applied to Aegon\u2019s financial instruments and align with the definition of default used for internal credit risk management purposes. This definition is consistently used in modeling PD and EAD throughout Aegon\u2019s expected loss calculations.
An instrument is considered \"cured\" when it no longer meets any default criteria for six consecutive months and the obligor is\u00a0assessed as likely to pay. This six-month period assesses the likelihood that a financial instrument will return to default status after cure, using different cure definitions.
\nAegon uses a\u00a0set\u00a0of\u00a0variables describing the state of the macroeconomy as input to the calculation of the probability of default and prepayment.
Subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the\u00a0Group 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.
The lifetime PD for a financial instrument is calculated by summing the probabilities of all future developments that end up in the ECL. All possible future developments are enumerated, and a probability is estimated for each using statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of SICR and the calculation of ECL both incorporate forward-looking information.
The impact of economic variables on ECL and lifetime PD varies by financial instrument, with expert judgment applied throughout the process. Forecasts for these variables (the \u201cbase economic scenario\u201d) reflect Aegon\u2019s best estimate for\u00a0the\u00a0next five years. Beyond that, a mean reversion approach is used, assuming variables return to long-term averages (for\u00a0example,\u00a0unemployment rates or GDP growth) over three years. A statistical regression analysis has been performed to assess how historical changes in macroeconomic variables have influenced default and prepayment rates.
Starting from the base scenario, three macroeconomic scenarios \u2014 positive, neutral, and negative \u2014 are generated by applying shocks to macroeconomic variables, reflecting their historical correlations. These shocks correspond to the average deviation from the long-term mean observed in the best/worst 10% of historical quarters. ECL is calculated for each scenario, weighted accordingly, and then summed up. This multi-scenario approach ensures the ECL reflects a balanced estimate, not just the most likely scenario. 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 on December 31, 2025 | \n \n | \n\n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n 2029 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.29 | \n \n \n 4.32 | \n \n \n 4.33 | \n \n \n 4.30 | \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 4.39 | \n \n \n 4.41 | \n \n \n 4.33 | \n \n \n 4.30 | \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 3.05 | \n \n \n 3.76 | \n \n \n 4.02 | \n \n \n 4.16 | \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 4.78 | \n \n \n 4.59 | \n \n \n 4.29 | \n \n \n 4.05 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.83 | \n \n \n 3.94 | \n \n \n 3.66 | \n \n \n 3.47 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.34 | \n \n \n 7.60 | \n \n \n 6.16 | \n \n \n 4.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 429.08 | \n \n \n 438.87 | \n \n \n 455.20 | \n \n \n 471.22 | \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 450.23 | \n \n \n 472.07 | \n \n \n 494.28 | \n \n \n 513.52 | \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 362.72 | \n \n \n 383.66 | \n \n \n 404.10 | \n \n \n 420.99 | \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 24,484.94 | \n \n \n 24,932.78 | \n \n \n 25,485.10 | \n \n \n 26,129.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,887.20 | \n \n \n 25,401.41 | \n \n \n 26,012.56 | \n \n \n 26,724.26 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 23,372.80 | \n \n \n 23,689.06 | \n \n \n 24,425.29 | \n \n \n 25,270.54 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 6,363.30 | \n \n \n 6,460.73 | \n \n \n 6,953.76 | \n \n \n 7,485.28 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,831.53 | \n \n \n 6,904.30 | \n \n \n 7,343.79 | \n \n \n 7,756.76 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 4,423.87 | \n \n \n 4,764.13 | \n \n \n 5,780.16 | \n \n \n 6,786.08 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions on 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
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, 2025 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking factors, such as regulatory, legislative, or political changes, have been considered but are not deemed material and did not adjust ECL. This process is reviewed quarterly for continued appropriateness.
\nThe Group writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and no reasonable expectation of recovery remains. Indicators include (i) ceasing enforcement activity; and (ii) where Aegon\u2019s recovery method is foreclosing on collateral, and the\u00a0value of\u00a0the collateral is not expected to fully recover.
Assets may still be subject to enforcement when written off. The contractual amounts written off in 2025 were not material. The Group continues to pursue full legal recovery, even for (partially) written-off assets.
\nThe Group may modify loan terms through commercial renegotiations or for distressed loans to maximize recovery. Such\u00a0restructuring activities include extended payment terms and penalty interest arrangements. Policies are based on\u00a0management\u2019s judgment of indicators suggesting continued payment and are reviewed continuously.
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\u00a0applies only to assets that have performed in accordance with the new terms for three consecutive months or more. The\u00a0gross carrying amount of such assets held on December 31, 2025, was EUR 0 million (2024: 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:
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;
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments derecognized in the period;
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of\u00a0inputs to models;
Impacts on the measurement of ECL due to changes made to models and assumptions;
Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during\u00a0the period.
For asset-backed securities, cash flow trends and collateral levels are also 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 table on debt securities explains the changes in the loss allowance between the beginning and the end of the annual period due to these factors:
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n \n Debt securities | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n POCI | \n \n \n Total | \n
| \n \n Loss allowance on January 1, 2025 | \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\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 2 to Stage 1 | \n \n \n \n \n (1) \n | \n \n \n 1 | \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 4 | \n \n \n \n \n (4) \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 (1) \n | \n \n \n 1 | \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 (9) \n | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n
| \n \n Impact of stage transfers on year-end ECL | \n \n \n 9 | \n \n \n \n \n (10) \n | \n \n \n \n \n (51) \n | \n \n \n - | \n \n \n \n \n (52) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 30 | \n \n \n 15 | \n \n \n 28 | \n \n \n - | \n \n \n 73 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (43) \n | \n
| \n \n Change in models | \n \n \n \n \n (26) \n | \n \n \n 3 | \n \n \n \n \n (5) \n | \n \n \n 3 | \n \n \n \n \n (24) \n | \n
| \n \n Net exchange differences | \n \n \n 23 | \n \n \n 5 | \n \n \n 14 | \n \n \n - | \n \n \n 42 | \n
| \n \n Loss allowance on December 31, 2025 | \n \n \n \n \n (188) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n||||
| \n \n Loss allowance on January 1, 2024 | \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 of stage transfers on year-end ECL | \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, 2024 | \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
The ECL allowance for debt securities measured at FVOCI of EUR 347 million (2024: EUR 341 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 decreased by EUR 85 million to EUR 33 million during 2025 (2024: EUR 118 million). The\u00a0decrease in expected credit losses was primarily driven by a mortgage loan in Aegon US and, to a lesser extent, by\u00a0the\u00a0stage transfer of an office facing occupancy and valuation challenges.
Based on the 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\u00a0asset\u00a0types that are not individually material.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Loans measured at amortized cost | \n \n \n 57 | \n \n \n \n \n (88) \n | \n
| \n \n Debt securities measured at FVOCI | \n \n \n \n \n (120) \n | \n \n \n \n \n (140) \n | \n
| \n \n Other | \n \n \n \n \n (6) \n | \n \n \n \n \n (9) \n | \n
| \n \n Net impairment charge in profit or loss | \n \n \n \n \n (69) \n | \n \n \n \n \n (237) \n | \n
The following tables further explain 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 ECL staging | \n \n | \n\n | \n||
| \n \n Debt securities | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n POCI | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1, 2025 | \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 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 (269) \n | \n \n \n 269 | \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 (12) \n | \n \n \n - | \n \n \n 12 | \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 (36) \n | \n \n \n 36 | \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 1 | \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 24 | \n \n \n \n \n (24) \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 12 | \n \n \n - | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n
| \n \n \n \n Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (8,729) \n | \n \n \n \n \n (146) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (8,963) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 8,632 | \n \n \n 4 | \n \n \n 27 | \n \n \n - | \n \n \n 8,663 | \n
| \n \n Unrealized gains/losses through equity | \n \n \n 1,528 | \n \n \n 18 | \n \n \n \n \n (46) \n | \n \n \n \n \n (12) \n | \n \n \n 1,488 | \n
| \n \n Amortizations through income statement | \n \n \n 115 | \n \n \n 1 | \n \n \n 27 | \n \n \n 19 | \n \n \n 162 | \n
| \n \n Net exchange differences | \n \n \n \n \n (6,035) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (6,120) \n | \n
| \n \n Other movements | \n \n \n 7 | \n \n \n \n \n (23) \n | \n \n \n 14 | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (21) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n
| \n \n Gross carrying amount on December 31, 2025 | \n \n \n 46,782 | \n \n \n 358 | \n \n \n 232 | \n \n \n 75 | \n \n \n 47,446 | \n
| \n \n Expected credit losses | \n \n \n \n \n (188) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n||||
| \n \n Gross carrying amount on January 1, 2024 | \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 -\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 \n \n Derecognized assets (excl. write-offs) \n | \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 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 - | \n \n \n \n \n (1) \n | \n \n \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, 2024 | \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 | \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
The total amount of undiscounted ECL at initial recognition for purchased or originated credit-impaired financial assets recognized during the period was EUR 1 million (2024: EUR 4 million).
| \n | \n\n \n ECL staging | \n \n | \n||
| \n \n Loans | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1, 2025 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n 10,716 | \n
| \n \n Transfers: | \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 (22) \n | \n \n \n 22 | \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 (3) \n | \n \n \n 3 | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 2 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n \n \n Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (654) \n | \n \n \n \n \n (45) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (707) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 934 | \n \n \n 23 | \n \n \n - | \n \n \n 957 | \n
| \n \n Realized gains and losses through income statement | \n \n \n 5 | \n \n \n 1 | \n \n \n 2 | \n \n \n 7 | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,251) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (1,268) \n | \n
| \n \n Gross carrying amount on December 31, 2025 | \n \n \n 9,588 | \n \n \n 115 | \n \n \n 3 | \n \n \n 9,705 | \n
| \n \n Expected credit losses | \n \n \n \n \n (11) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (33) \n | \n
| \n \n Net carrying amount on December 31, 2025 | \n \n \n 9,576 | \n \n \n 94 | \n \n \n 2 | \n \n \n 9,672 | \n
| \n | \n\n | \n|||
| \n \n Gross carrying amount on January 1, 2024 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n 10,182 | \n
| \n \n Transfers: | \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 -\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 -\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 Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (633) \n | \n \n \n \n \n (69) \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 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 4 | \n
| \n \n Net exchange differences | \n \n \n 667 | \n \n \n 7 | \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 (1) \n | \n
| \n \n Gross carrying amount on December 31, 2024 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n 10,716 | \n
| \n \n Expected credit losses | \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 (118) \n | \n
| \n \n Net carrying amount on December 31, 2024 | \n \n \n 10,536 | \n \n \n 60 | \n \n \n 2 | \n \n \n 10,598 | \n
The total amount of purchased or originated credit\u2011impaired financial assets recognized during the period was EUR 0 million (2024: EUR 0 million).
\nManagement performs a sensitivity analysis on the ECL recognized on material classes of its assets. As ECL is not material at the end of 2025 and 2024, the sensitivity of ECL is assessed as not material for 2025 and 2024.
\nMarket risk is the risk that changes in market prices (for example, 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.\u00a0Aegon\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 exists on both assets and liabilities. On the asset side, Aegon is exposed through direct equity investments, bearing most of the return volatility and performance risk. On the liability side, exposure arises from insurance and investment contracts where policyholder funds are invested in equities, such as variable annuities, unit-linked products, and mutual funds. While most risk is with policyholders, lower returns can reduce Aegon\u2019s asset management fees. Some products also carry minimum return or accumulation guarantees.
Transamerica\u2019s dynamic hedge program covers variable annuities with guaranteed minimum death benefits (GMDB), guaranteed minimum income benefits (GMIB), and guaranteed minimum withdrawal benefits (GMWB). This program hedges equity and interest rate risks across the entire variable annuity portfolio, stabilizing cash flows and reducing market sensitivity on an economic basis. As of the middle of August 2025, Transamerica expanded its dynamic hedge program for Variable Annuities to further reduce its equity market exposure. The expansion now includes first order equity market exposure of 25% of the Variable Annuities base contracts held by Transamerica Life Insurance Company, Transamerica\u2019s largest insurance carrier. This reduces the economic equity market sensitivity of the portfolio and further solidifies the run-off of the Variable Annuities portfolio. Transamerica also hedges equity risk arising from indexed universal life (IUL) and registered indexed linked annuity (RILA) product lines.
| \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 2025 | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n 2024 | \n
| \n \n Equity funds | \n \n \n 131 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 140 | \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 70 | \n \n \n 16 | \n \n \n 6 | \n \n \n - | \n \n \n 92 | \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 10 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 10 | \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 24 | \n \n \n - | \n \n \n 19 | \n \n \n - | \n \n \n 42 | \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 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4 | \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 2,468 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2,470 | \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 1,542 | \n \n \n 714 | \n \n \n 49 | \n \n \n 1 | \n \n \n 2,306 | \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 4,249 | \n \n \n 731 | \n \n \n 75 | \n \n \n 10 | \n \n \n 5,065 | \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 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 2025 | \n \n \n Americas | \n \n \n United | \n \n \n International | \n \n \n Asset Management | \n \n \n 2024 | \n
| \n \n Communication | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Consumer | \n \n \n 7 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n
| \n \n Financials | \n \n \n 16 | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n 22 | \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 125 | \n \n \n 16 | \n \n \n 27 | \n \n \n - | \n \n \n 169 | \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 12 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 6 | \n
| \n \n Other | \n \n \n 50 | \n \n \n - | \n \n \n 4 | \n \n \n 9 | \n \n \n 63 | \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 211 | \n \n \n 16 | \n \n \n 37 | \n \n \n 9 | \n \n \n 273 | \n \n \n 256 | \n \n \n 14 | \n \n \n 39 | \n \n \n 9 | \n \n \n 317 | \n
The table below sets forth the closing levels of certain major indices at the end of the last five years.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n
| \n \n S&P 500 | \n \n \n 6,846 | \n \n \n 5,882 | \n \n \n 4,770 | \n \n \n 3,840 | \n \n \n 4,766 | \n
| \n \n Nasdaq | \n \n \n 25,250 | \n \n \n 21,012 | \n \n \n 15,011 | \n \n \n 10,466 | \n \n \n 15,645 | \n
| \n \n FTSE 100 | \n \n \n 9,931 | \n \n \n 8,173 | \n \n \n 7,733 | \n \n \n 7,452 | \n \n \n 7,385 | \n
| \n \n AEX | \n \n \n 951 | \n \n \n 879 | \n \n \n 787 | \n \n \n 689 | \n \n \n 798 | \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\n \n 2025 | \n \n \n 2024 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Equity | \n \n \n CSM | \n \n \n Net result | \n \n \n Equity | \n
| \n \n 10% increase in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n 18 | \n \n \n 21 | \n \n \n - | \n \n \n \n \n (8) \n | \n \n \n \n \n (6) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 127 | \n \n \n 122 | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n \n \n (30) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 298 | \n \n \n \n \n (45) \n | \n \n \n \n \n (47) \n | \n \n \n 363 | \n \n \n 154 | \n \n \n 160 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 10% decrease in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n \n \n (16) \n | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n 8 | \n \n \n 1 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (176) \n | \n \n \n \n \n (169) \n | \n \n \n - | \n \n \n 7 | \n \n \n 7 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (299) \n | \n \n \n 96 | \n \n \n 91 | \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\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 25% increase in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n 41 | \n \n \n 50 | \n \n \n - | \n \n \n \n \n (24) \n | \n \n \n \n \n (15) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 277 | \n \n \n 267 | \n \n \n - | \n \n \n \n \n (95) \n | \n \n \n \n \n (99) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 748 | \n \n \n \n \n (70) \n | \n \n \n \n \n (78) \n | \n \n \n 916 | \n \n \n 398 | \n \n \n 413 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 25% decrease in equity price | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial instruments | \n \n \n - | \n \n \n \n \n (31) \n | \n \n \n \n \n (39) \n | \n \n \n - | \n \n \n 24 | \n \n \n 9 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n \n \n (165) \n | \n \n \n \n \n (159) \n | \n \n \n - | \n \n \n 326 | \n \n \n 340 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (764) \n | \n \n \n \n \n (80) \n | \n \n \n \n \n (84) \n | \n \n \n \n \n (847) \n | \n \n \n \n \n (770) \n | \n \n \n \n \n (807) \n | \n
Over 2025, the decreased CSM sensitivities resulted from the Variable Annuity base fee hedge implementation in 2025, which modifies the portfolio\u2019s economic exposure and reduces sensitivity to market movements. The decrease of net equity sensitivities and\u00a0directional changes in the sensitivities of (re)insurance assets and liabilities are due to growth in the Registered Index\u2011Linked Annuity (RILA) product combined with Transamerica\u2019s other strategic product, Indexed Universal Life (IUL). Sensitivities of these products have opposite sensitivities compared to the Variable Annuity (VA) products. More offsetting synergy was observed over 2025 as RILA/IUL continued to grow\u00a0to offset VA resulting in sensitivity decrease.
\nAegon bears interest rate risk with many of its products. When 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\u00a0some products, cash flows are less predictable due to policyholder actions that can be affected by interest rate levels.
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 require Aegon to make cash payments by selling invested assets at a time when asset prices are adversely affected by rising market interest rates, resulting in realized investment losses. These cash payments to policyholders reduce total invested assets and\u00a0the net result.
During periods of sustained low interest rates, Aegon may be unable to preserve margins due to minimum interest rate guarantees and minimum guaranteed crediting rates on policies. Also, investment returns may be lower because interest income on new fixed-income investments is likely to have declined with 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\u00a0rates and Aegon may be required to reinvest the proceeds in securities bearing lower interest rates. Accordingly, the net\u00a0result 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 actively manages interest rate risk, taking into account policyholder behavior and management actions. It uses advanced measurement techniques, derivatives, and other tools, as outlined in its Investment & Counterparty Risk policy, to\u00a0limit exposure. Derivative use is governed by Aegon\u2019s Derivative Use Policy, detailed in note 20 Derivatives.
The following table shows interest rates at the end of each of the past five years.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2022 | \n \n \n 2021 | \n
| \n \n 3-month Term SOFR | \n \n \n 3.65% | \n \n \n 4.31% | \n \n \n 5.33% | \n \n \n 4.59% | \n \n \n 0.91% | \n
| \n \n 3-month EURIBOR | \n \n \n 2.03% | \n \n \n 2.71% | \n \n \n 3.91% | \n \n \n 2.13% | \n \n \n -0.57% | \n
| \n \n 10-year US Treasury | \n \n \n 4.17% | \n \n \n 4.57% | \n \n \n 3.86% | \n \n \n 3.83% | \n \n \n 1.78% | \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 2025 | \n \n \n 2024 | \n ||||
| \n \n Estimated approximate effects on: | \n \n \n CSM | \n \n \n Net result | \n \n \n Equity | \n \n \n CSM | \n \n \n Net result | \n \n \n 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 \n (11) \n | \n \n \n \n \n (662) \n | \n \n \n - | \n \n \n \n \n (12) \n | \n \n \n \n \n (729) \n | \n
| \n \n Insurance and reinsurance assets | \n \n \n \n \n (1) \n | \n \n \n \n \n (553) \n | \n \n \n \n \n (2,835) \n | \n \n \n - | \n \n \n \n \n (717) \n | \n \n \n \n \n (3,596) \n | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n 87 | \n \n \n 656 | \n \n \n 3,047 | \n \n \n 49 | \n \n \n 742 | \n \n \n 4,009 | \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 \n 14 | \n \n \n 780 | \n \n \n - | \n \n \n 15 | \n \n \n 859 | \n
| \n \n Insurance and reinsurance assets | \n \n \n - | \n \n \n 695 | \n \n \n 3,257 | \n \n \n - | \n \n \n 957 | \n \n \n 4,255 | \n
| \n \n Insurance and reinsurance liabilities | \n \n \n \n \n (91) \n | \n \n \n \n \n (872) \n | \n \n \n \n \n (3,874) \n | \n \n \n \n \n (50) \n | \n \n \n \n \n (989) \n | \n \n \n \n \n (5,113) \n | \n
Over 2025, CSM sensitivity increased primarily due to updates to Variable Annuity assumptions in 2025. Net result sensitivities increased driven by registered index-linked annuities (RILA) due to increased exposure from new business growth. Additionally, Shareholders\u2019 equity sensitivity increased mainly because of higher Indexed unit linked (IUL) sensitivity within U.S.\u00a0Protection Solutions Life line of business, which reduced liability sensitivity, and increased asset sensitivity driven by new business growth.
The exposures across our products vary, and we have several asymmetric exposures, which are mainly explained by certain US\u00a0products.
Stable Value Solutions (SVS) and parts of Universal Life\u00a0feature stable surrender values and crediting rates. When interest rates rise, lapses become more attractive to customers, leading to losses due to market movements. Additionally, IFRS 9 accounting rules create asymmetry, as they require negative SVS liabilities to be floored at zero in the event of falling interest\u00a0rates.
Other longer-duration products, such as Long-Term Care and Unit-Linked policies with non-lapse or secondary guarantees, exhibit natural convexity, meaning they are more sensitive to falling interest rates, which negatively impact valuations, than\u00a0to\u00a0rising\u00a0rates. This is due to expected premium inflows over 10\u201320 years, while claims continue for many years thereafter. The\u00a0combination of these asymmetric exposures with more balanced ones across other products results in overall adverse sensitivities to both rising and falling interest rates.
\nAs an international group, Aegon faces foreign currency translation risk, primarily when policies are denominated in currencies other than the issuer\u2019s functional currency. Currency risk in investment portfolios backing insurance and investment liabilities is managed through asset-liability matching principles. Assets allocated to equity are kept in local currencies to meet regulatory and self-imposed capital requirements. Therefore, fluctuations in the exchange rate affect shareholders\u2019 equity through the translation of subsidiaries' balances into euros, Aegon\u2019s presentation currency.
Aegon holds the remainder of its capital base (perpetual capital securities, subordinated and senior debt) in various currencies aligned with the book value of its country units, thereby mitigating currency effects on shareholders' equity and leverage ratios. However, income from the main non-euro units is not hedged, so earnings may fluctuate due to currency translation. With major operations in the Americas and the United Kingdom, Aegon\u2019s primary exposures are to USD and GBP, which can significantly affect net results and shareholders\u2019 equity.
Aegon\u2019s Investment & Counterparty Risk Policy sets currency risk exposure limits at both the Group and regional levels. Direct\u00a0currency speculation or program trading by country units is not allowed unless explicitly approved by the Group Risk and Capital Committee and the CEO. Assets should be held in, or hedged back to, the functional currency of the business. Where\u00a0this is not possible or practical, remaining currency exposure should be well-documented, and limits are placed on\u00a0the\u00a0total exposure at both the Group and country units\u2019 level.
Information on Aegon's historical net result and shareholders' equity in functional currency are shown in the table below:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net result | \n \n | \n\n | \n\n | \n
| \n \n \n \n Americas (in USD) \n | \n \n \n 423 | \n \n \n 198 | \n \n \n \n \n (266) \n | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 24 | \n \n \n 56 | \n \n \n 26 | \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 5,599 | \n \n \n 3,838 | \n \n \n 3,690 | \n
| \n \n \n \n United Kingdom (in GBP) \n | \n \n \n 1,087 | \n \n \n 1,198 | \n \n \n 1,256 | \n
The summary of quantitative information about Aegon\u2019s exposure to currency risk arising from insurance and reinsurance contracts and financial instruments is as follows:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||||||
| \n | \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 722 | \n \n \n 1,437 | \n \n \n 66,487 | \n \n \n 689 | \n \n \n 69,335 | \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 Financial instruments - liabilities | \n \n \n 2,774 | \n \n \n 58,644 | \n \n \n 41,641 | \n \n \n - | \n \n \n 103,059 | \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\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 8 | \n \n \n 1 | \n \n \n 17,110 | \n \n \n 52 | \n \n \n 17,171 | \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 Insurance and reinsurance contract - liabilities | \n \n \n 712 | \n \n \n 65,978 | \n \n \n 126,161 | \n \n \n 4,693 | \n \n \n 197,544 | \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
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 Estimated translation effect of movement in exchange rates 1 | \n \n \n Net income | \n \n \n Equity | \n
| \n \n 2025 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD exchange rate | \n \n \n 63 | \n \n \n 889 | \n
| \n \n Increase by 15% of GBP exchange rate | \n \n \n 4 | \n \n \n 226 | \n
| \n \n Increase by 15% of non-euro exchange rate | \n \n \n 90 | \n \n \n 1,259 | \n
| \n \n Decrease by 15% of USD exchange rate | \n \n \n \n \n (50) \n | \n \n \n \n \n (656) \n | \n
| \n \n Decrease by 15% of GBP exchange rate | \n \n \n \n \n (3) \n | \n \n \n \n \n (167) \n | \n
| \n \n Decrease by 15% of non-euro exchange rate | \n \n \n \n \n (66) \n | \n \n \n \n \n (931) \n | \n
| \n | \n\n | \n\n | \n
| \n \n 2024 | \n \n | \n\n | \n
| \n \n Increase by 15% of USD exchange rate | \n \n \n 43 | \n \n \n 734 | \n
| \n \n Increase by 15% of GBP exchange rate | \n \n \n 8 | \n \n \n 264 | \n
| \n \n Increase by 15% of non-euro exchange rate | \n \n \n 72 | \n \n \n 1,126 | \n
| \n \n Decrease by 15% of USD exchange rate | \n \n \n \n \n (31) \n | \n \n \n \n \n (543) \n | \n
| \n \n Decrease by 15% of GBP exchange rate | \n \n \n \n \n (6) \n | \n \n \n \n \n (195) \n | \n
| \n \n Decrease by 15% of non-euro exchange rate | \n \n \n \n \n (53) \n | \n \n \n \n \n (832) \n | \n
Liquidity risk is inherent in Aegon\u2019s business, as each asset and liability has distinct liquidity characteristics. Some liabilities are surrenderable, while some assets - such as private placements, mortgage loans, real estate, and limited partnerships - are less liquid. If Aegon needs substantial cash beyond normal requirements and available credit facilities, it may struggle to sell these assets in the short term or at attractive prices. Liquidity risk is also affected by the use of collateralized derivatives to mitigate other risks.
Aegon\u2019s Liquidity Risk Policy requires country units to maintain sufficient levels of highly liquid assets to meet cash demands by policyholders and account holders over two years. Potential cash demands are assessed under stress scenarios including rising interest rates, multiple downgrades of the Group's credit rating, and spikes in disintermediation (or lapses). At the same time, the liquidity of non-cash and non-government assets is assumed to be severely impaired. All legal entities and the Group must maintain sufficient liquidity to meet obligations under these extreme scenarios.
Aegon held EUR 13,976 million of investments in cash, money market products, and government bonds that are readily saleable or redeemable on demand (2024: EUR 16,291 million, excluding the investments of the disposal group). The\u00a0Group expects to meet its obligations, even during a stressed liquidity event, from operating cash flows, the proceeds of maturing assets, and these highly liquid assets. Further, the Group has access to back-up credit facilities, as disclosed in\u00a0note 31 Borrowings, amounting to EUR 1,351 million which were unused at the end of the reporting period (2024:\u00a0EUR 1,544 million).
The maturity analysis on the next page 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, 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 a notice period is specified, it has been assumed that notice is given immediately, and the repayment has been presented for 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 disclosed amount may be based on the index level as of the reporting date.
To manage liquidity risk arising from financial liabilities, Aegon holds liquid assets, including cash and cash equivalents and investment-grade securities for which there is an active, 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 flows in the table below (Maturity analysis \u2013 insurance and reinsurance contracts) reflect management\u2019s best estimates of gross benefits and expenses, partially offset by expected premiums, fees, and charges from in-force business.
These estimates are based on assumptions from Aegon\u2019s historical experience and on recent trends. Actual payments may differ if experience varies from these assumptions. The projections are presented on an undiscounted, pre-tax, and pre-reinsurance basis.
\nThe following tables provide a maturity analysis of Aegon\u2019s insurance and reinsurance contracts, which reflects the dates on\u00a0which the cash flows are expected to occur. The undiscounted net cash flows below represent the undiscounted best estimate liability for the relevant periods.
| \n \n Undiscounted best estimate liability | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \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 participation contracts | \n \n \n 10,502 | \n \n \n 9,904 | \n \n \n 9,237 | \n \n \n 8,684 | \n \n \n 8,567 | \n \n \n 132,619 | \n \n \n 179,513 | \n
| \n \n - Without direct participation contracts | \n \n \n 2,455 | \n \n \n 2,288 | \n \n \n 2,330 | \n \n \n 2,438 | \n \n \n 2,531 | \n \n \n 160,468 | \n \n \n 172,510 | \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 participation contracts | \n \n \n 2,136 | \n \n \n 2,028 | \n \n \n 1,859 | \n \n \n 1,660 | \n \n \n 1,614 | \n \n \n 21,208 | \n \n \n 30,505 | \n
| \n \n Reinsurance contracts liability | \n \n \n 10 | \n \n \n 11 | \n \n \n 11 | \n \n \n 12 | \n \n \n 12 | \n \n \n 306 | \n \n \n 362 | \n
| \n \n Total | \n \n \n 15,103 | \n \n \n 14,230 | \n \n \n 13,437 | \n \n \n 12,794 | \n \n \n 12,725 | \n \n \n 314,602 | \n \n \n 382,890 | \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 participation 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 3,238 | \n \n \n 2,962 | \n \n \n 2,777 | \n \n \n 2,782 | \n \n \n 2,849 | \n \n \n 170,682 | \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 participation 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 liability | \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 15,224 | \n \n \n 14,821 | \n \n \n 14,261 | \n \n \n 13,376 | \n \n \n 13,239 | \n \n \n 351,920 | \n \n \n 422,841 | \n
| \n \n Expected release of risk adjustment | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \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 participation contracts | \n \n \n 35 | \n \n \n 31 | \n \n \n 27 | \n \n \n 27 | \n \n \n 26 | \n \n \n 328 | \n \n \n 474 | \n
| \n \n - Without direct participation contracts | \n \n \n 41 | \n \n \n 37 | \n \n \n 38 | \n \n \n 40 | \n \n \n 41 | \n \n \n 2,464 | \n \n \n 2,660 | \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 participation contracts | \n \n \n 10 | \n \n \n 9 | \n \n \n 7 | \n \n \n 7 | \n \n \n 7 | \n \n \n 57 | \n \n \n 97 | \n
| \n \n Reinsurance contracts liability | \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 \n \n (2) \n | \n \n \n \n \n (22) \n | \n \n \n \n \n (30) \n | \n
| \n \n Total | \n \n \n 84 | \n \n \n 76 | \n \n \n 70 | \n \n \n 72 | \n \n \n 72 | \n \n \n 2,827 | \n \n \n 3,201 | \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 participation 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 participation 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 Reinsurance contracts liability | \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
For liquidity risk arising from contracts within the scope of IFRS\u202f17, Aegon shows in below table the amounts that are payable on demand, disclosing the relationship between such amounts and the carrying amount of the related portfolios of contracts.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||
| \n \n Liabilities arising from (re)insurance contracts | \n \n \n Amount payable on demand | \n \n \n Carrying amount | \n \n \n Amount payable on demand | \n \n \n Carrying amount | \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 - Direct participation contracts | \n \n \n 122,098 | \n \n \n 128,354 | \n \n \n 129,566 | \n \n \n 136,033 | \n
| \n \n - Without direct participation contracts | \n \n \n 37,919 | \n \n \n 47,269 | \n \n \n 40,782 | \n \n \n 50,767 | \n
| \n \n Reinsurance contracts held, in a liability position | \n \n \n 1 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n
| \n \n On December 31 | \n \n \n 160,018 | \n \n \n 175,624 | \n \n \n 170,348 | \n \n \n 186,801 | \n
Most Aegon insurance products and investment contracts with discretionary participation features include investment-related or investment-return services, under which policyholders may surrender or early terminate their contracts to receive their current account value, net of contractual penalties, after a specified notional period. The current account value reflects the\u00a0fair 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 tables present the Group's maturity analysis for its financial instruments, based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on\u00a0a gross and net\u00a0basis. Also, the gross undiscounted inflows and outflows on non-derivatives.
| \n \n Derivatives - Undiscounted contractual cash flows 1 | \n \n \n On demand | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 893 | \n \n \n 192 | \n \n \n 141 | \n \n \n 175 | \n \n \n 128 | \n \n \n 1,867 | \n \n \n 3,395 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (839) \n | \n \n \n \n \n (176) \n | \n \n \n \n \n (126) \n | \n \n \n \n \n (182) \n | \n \n \n \n \n (116) \n | \n \n \n \n \n (1,742) \n | \n \n \n \n \n (3,180) \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 449 | \n \n \n 308 | \n \n \n 299 | \n \n \n 235 | \n \n \n 241 | \n \n \n 4,348 | \n \n \n 5,881 | \n
| \n \n Cash outflows | \n \n \n - | \n \n \n \n \n (436) \n | \n \n \n \n \n (280) \n | \n \n \n \n \n (237) \n | \n \n \n \n \n (221) \n | \n \n \n \n \n (223) \n | \n \n \n \n \n (7,828) \n | \n \n \n \n \n (9,224) \n | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 Non-derivatives - Undiscounted gross contractual cash flows | \n \n \n On demand | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \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 83 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 61 | \n \n \n 156 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 78 | \n \n \n 78 | \n \n \n 59 | \n \n \n 40 | \n \n \n 40 | \n \n \n 2,234 | \n \n \n 2,529 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 94 | \n \n \n 713 | \n \n \n 48 | \n \n \n 48 | \n \n \n 48 | \n \n \n 1,004 | \n \n \n 1,956 | \n
| \n \n Investment contracts | \n \n \n 38,487 | \n \n \n 58,621 | \n \n \n 104 | \n \n \n 21 | \n \n \n 3 | \n \n \n 12 | \n \n \n 41 | \n \n \n 97,290 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 31 | \n \n \n 28 | \n \n \n 26 | \n \n \n 22 | \n \n \n 17 | \n \n \n 96 | \n \n \n 219 | \n
| \n \n Other financial liabilities | \n \n \n 2,877 | \n \n \n 1,099 | \n \n \n 36 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,016 | \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
For maturity information on other obligations, please see note 39 Commitments and contingencies.
\n| \n \n Insurance contracts without direct participation | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Debt securities and money market instruments | \n \n \n 2,211 | \n \n \n 2,233 | \n \n \n 2,166 | \n
| \n \n Loans | \n \n \n 421 | \n \n \n 428 | \n \n \n 433 | \n
| \n \n Other | \n \n \n 52 | \n \n \n 60 | \n \n \n 139 | \n
| \n \n For the year ended December 31 | \n \n \n 2,683 | \n \n \n 2,720 | \n \n \n 2,738 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \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 Non-derivative assets applying the fair value option | \n \n \n 234 | \n \n \n \n \n (10) \n | \n \n \n 133 | \n \n \n 357 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 258 | \n \n \n - | \n \n \n 258 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 234 | \n \n \n 248 | \n \n \n 133 | \n \n \n 615 | \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 For the year ended December 31, 2024 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \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 For the year ended December 31, 2023 | \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 2025 | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 1,010 | \n \n \n 12 | \n \n \n 542 | \n \n \n 1,565 | \n
| \n \n Debt securities and money market investments | \n \n \n 95 | \n \n \n 1,358 | \n \n \n 54 | \n \n \n 1,507 | \n
| \n \n Unconsolidated investment funds | \n \n \n 12,074 | \n \n \n - | \n \n \n 1,775 | \n \n \n 13,849 | \n
| \n \n Loans | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n \n Other | \n \n \n - | \n \n \n 86 | \n \n \n - | \n \n \n 86 | \n
| \n | \n\n \n 13,179 | \n \n \n 1,459 | \n \n \n 2,371 | \n \n \n 17,010 | \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 (1) \n | \n \n \n 41 | \n \n \n \n \n (7) \n | \n \n \n 33 | \n
| \n \n Change in fair value of hedges on guarantees in products with DPF | \n \n \n 213 | \n \n \n - | \n \n \n - | \n \n \n 213 | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n | \n\n \n 212 | \n \n \n 39 | \n \n \n \n \n (7) \n | \n \n \n 244 | \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 (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \n
| \n | \n\n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 5 | \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 FVOCI | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \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 / (losses) on investments in real estate | \n \n \n 4 | \n \n \n - | \n \n \n 3 | \n \n \n 7 | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 9 | \n
| \n | \n\n \n 4 | \n \n \n 9 | \n \n \n 3 | \n \n \n 15 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 13,395 | \n \n \n 1,512 | \n \n \n 2,367 | \n \n \n 17,275 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 13,183 | \n \n \n \n \n (305) \n | \n \n \n 2,374 | \n \n \n 15,252 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n 212 | \n \n \n 174 | \n \n \n \n \n (7) \n | \n \n \n 380 | \n
| \n \n Other | \n \n \n - | \n \n \n 1,643 | \n \n \n - | \n \n \n 1,643 | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \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 DPF | \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 Investments measured at FVOCI | \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 / (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 For the year ended December 31, 2024 | \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 Other | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \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 DPF | \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 / (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 For the year ended December 31, 2023 | \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 Other | \n \n \n - | \n \n \n 1,888 | \n \n \n - | \n \n \n 1,888 | \n
| \n \n Insurance contracts without direct participation | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 (107) \n | \n \n \n \n \n (103) \n | \n \n \n \n \n (77) \n | \n
| \n \n Loans | \n \n \n 57 | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \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 9 | \n \n \n 3 | \n \n \n 37 | \n
| \n \n Impairment (losses) / reversals on non-financial assets and receivables | \n \n \n \n \n (5) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (31) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (46) \n | \n \n \n \n \n (190) \n | \n \n \n \n \n (86) \n | \n
Impairment losses in 2025 decreased by EUR 144 million to EUR 46 million mainly due to lower expected credit loss (ECL) balance in Aegon US for mortgages following more favorable economic scenario output and real estate occupancy rates.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Debt securities and money market instruments | \n \n \n 557 | \n \n \n 484 | \n \n \n 457 | \n
| \n \n Other | \n \n \n 80 | \n \n \n 121 | \n \n \n 142 | \n
| \n \n For the year ended December 31 | \n \n \n 636 | \n \n \n 605 | \n \n \n 599 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 74 | \n \n \n 65 | \n \n \n 89 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n 15 | \n \n \n 13 | \n \n \n - | \n
| \n \n Non-derivative assets - PH designated | \n \n \n 129 | \n \n \n 108 | \n \n \n - | \n
| \n \n For the year ended December 31 | \n \n \n 217 | \n \n \n 186 | \n \n \n 89 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \n \n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 421 | \n \n \n 368 | \n \n \n 195 | \n
| \n \n Debt securities and money market investments | \n \n \n 47 | \n \n \n \n \n (55) \n | \n \n \n 46 | \n
| \n \n Unconsolidated investment funds | \n \n \n 9,578 | \n \n \n 7,367 | \n \n \n 6,805 | \n
| \n \n Other | \n \n \n 1 | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 10,047 | \n \n \n 7,680 | \n \n \n 7,047 | \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 43 | \n \n \n \n \n (38) \n | \n \n \n \n \n (8) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n 3 | \n \n \n 5 | \n
| \n \n Change in fair value of hedges on guarantees in investment contracts without DPF | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n 2 | \n \n \n 3 | \n
| \n | \n\n \n 43 | \n \n \n \n \n (35) \n | \n \n \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 (FVOCI) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n
| \n | \n\n \n \n \n (28) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n 1 | \n \n \n - | \n \n \n - | \n
| \n \n Net fair value change on investments in real estate | \n \n \n 2 | \n \n \n 1 | \n \n \n \n \n (6) \n | \n
| \n \n \n \n Net foreign currency gains and (losses) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n 2 | \n
| \n | \n\n \n 3 | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n For the year ended December 31 | \n \n \n 10,065 | \n \n \n 7,634 | \n \n \n 6,929 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 10,064 | \n \n \n 7,666 | \n \n \n 7,043 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (17) \n | \n \n \n 14 | \n \n \n 3 | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n 18 | \n \n \n \n \n (47) \n | \n \n \n \n \n (117) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 (21) \n | \n \n \n \n \n (40) \n | \n \n \n \n \n (4) \n | \n
| \n \n Impairment (losses) / reversals on non-financial assets and receivables | \n \n \n \n \n (1) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (29) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (22) \n | \n \n \n \n \n (47) \n | \n \n \n \n \n (33) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Interest charges | \n \n | \n\n | \n\n | \n
| \n \n - Subordinated loans | \n \n \n \n \n (82) \n | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n
| \n \n - Trust pass-through securities | \n \n \n \n \n (8) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n - Borrowings | \n \n \n \n \n (88) \n | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (178) \n | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Cash at bank and in hand | \n \n \n 1,165 | \n \n \n 1,478 | \n \n \n 1,614 | \n
| \n \n Short-term deposits | \n \n \n 315 | \n \n \n 152 | \n \n \n 340 | \n
| \n \n Money market investments | \n \n \n 1,253 | \n \n \n 1,838 | \n \n \n 2,120 | \n
| \n \n On December 31 | \n \n \n 2,733 | \n \n \n 3,469 | \n \n \n 4,074 | \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 1,972 | \n \n \n 2,240 | \n \n \n 3,416 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Income from security lending programs | \n \n \n 3 | \n \n \n 4 | \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 2.13% | \n \n \n 3.17% | \n \n \n 3.90% | \n
| \n \n \n \n Average maturity on short-term deposits (in days) \n | \n \n \n 2 | \n \n \n 5 | \n \n \n 11 | \n
The disclosed carrying amounts reasonably approximate fair values at year-end.
See note 40 Transfers of financial assets\u00a0for details on collateral received and paid. 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).\u00a0
Cash and cash equivalent balances that are not available for use by the group is EUR 158 million (2024: EUR 141 million, 2023: EUR 98 million).
| \n \n Summary cash flow statement | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net cash flows from operating activities | \n \n \n 434 | \n \n \n 762 | \n \n \n 864 | \n
| \n \n Net cash flows from investing activities | \n \n \n 1,010 | \n \n \n 300 | \n \n \n \n \n (1,996) \n | \n
| \n \n Net cash flows from financing activities | \n \n \n \n \n (2,035) \n | \n \n \n \n \n (1,755) \n | \n \n \n \n \n (3,241) \n | \n
| \n \n Net increase / (decrease) in cash and cash equivalents | \n \n \n \n \n (591) \n | \n \n \n \n \n (694) \n | \n \n \n \n \n (4,373) \n | \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 \n \n (144) \n | \n \n \n 88 | \n \n \n \n \n (38) \n | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n \n Non-Insurance related | \n \n \n Total | \n |
| \n \n 2025 | \n \n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n | \n\n | \n
| \n \n FVOCI \u2013 with recycling | \n \n \n - | \n \n \n 41,100 | \n \n \n - | \n \n \n 8,647 | \n \n \n 49,747 | \n
| \n \n FVOCI \u2013 no recycling | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 1 | \n \n \n 10 | \n
| \n \n Amortized cost | \n \n \n - | \n \n \n 7,443 | \n \n \n - | \n \n \n 2,276 | \n \n \n 9,719 | \n
| \n \n FVPL \u2013 designated | \n \n \n 109,580 | \n \n \n 1,637 | \n \n \n 21,441 | \n \n \n 85,222 | \n \n \n 217,880 | \n
| \n \n FVPL \u2013 mandatory | \n \n \n - | \n \n \n 6,207 | \n \n \n - | \n \n \n 1,098 | \n \n \n 7,306 | \n
| \n \n \n \n Total financial assets (excl. derivatives) \n | \n \n \n 109,580 | \n \n \n 56,397 | \n \n \n 21,441 | \n \n \n 97,244 | \n \n \n 284,662 | \n
| \n \n Investments in real estate | \n \n \n 217 | \n \n \n 42 | \n \n \n 132 | \n \n \n 87 | \n \n \n 479 | \n
| \n \n Total investments | \n \n \n 109,798 | \n \n \n 56,439 | \n \n \n 21,573 | \n \n \n 97,331 | \n \n \n 285,141 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 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 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 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 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 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 \n \n Total financial assets (excl. derivatives) \n | \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 Investments - Aegon risk | \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 Shares | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 263 | \n \n \n 273 | \n \n \n 273 | \n
| \n \n Debt securities | \n \n \n 47,411 | \n \n \n - | \n \n \n 36 | \n \n \n 1,123 | \n \n \n 1,315 | \n \n \n 49,884 | \n \n \n 49,884 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,308 | \n \n \n - | \n \n \n - | \n \n \n 146 | \n \n \n 1,722 | \n \n \n 4,176 | \n \n \n 4,176 | \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 9,672 | \n \n \n 82 | \n \n \n - | \n \n \n 9,754 | \n \n \n 8,985 | \n
| \n \n Other | \n \n \n 28 | \n \n \n - | \n \n \n - | \n \n \n 716 | \n \n \n 4,005 | \n \n \n 4,749 | \n \n \n 4,749 | \n
| \n \n Total | \n \n \n 49,747 | \n \n \n 10 | \n \n \n 9,719 | \n \n \n 2,066 | \n \n \n 7,306 | \n \n \n 68,848 | \n \n \n 68,078 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 - | \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
In both 2025 and 2024, no significant transactions took place with respect to shares recognized at FVOCI. No dividends were received during 2025 (2024: 0).
| \n \n Investments - Policyholder risk | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Shares | \n \n \n 15,321 | \n \n \n 15,198 | \n
| \n \n Debt securities | \n \n \n 6,318 | \n \n \n 6,259 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,788 | \n \n \n 1,541 | \n
| \n \n Unconsolidated investment funds | \n \n \n 190,671 | \n \n \n 192,775 | \n
| \n \n Deposits with financial institutions | \n \n \n 1,716 | \n \n \n 2,052 | \n
| \n \n Total | \n \n \n 215,814 | \n \n \n 217,824 | \n
Of the debt securities, money market, and other short-term investments and loans EUR 5,774 million is current (December 31, 2024: EUR 6,106 million).
Where necessary, Aegon applied the fair value option on investments where policyholders bear the risk for investment performance. See note 38 Fair Value\u00a0for a summary of all financial assets and financial liabilities measured at fair value through profit\u00a0or\u00a0loss. See note 40 Transfers of financial assets for a discussion of collateral received and paid.
In 2025, the Group has not made changes to its business model or reclassified financial assets.
\n| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n \n Non-Insurance related | \n \n \n 2025 | \n \n \n Insurance contracts | \n \n \n Investment contracts | \n \n \n Non-Insurance related | \n \n \n 2024 | \n ||
| \n \n \n \n Derivatives (FVPL) \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 Assets designated as: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other derivatives | \n \n \n 20 | \n \n \n 348 | \n \n \n 14 | \n \n \n 8 | \n \n \n 390 | \n \n \n 66 | \n \n \n 477 | \n \n \n 53 | \n \n \n 10 | \n \n \n 606 | \n
| \n \n Fair value hedges | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Cash flow hedges | \n \n \n - | \n \n \n 89 | \n \n \n - | \n \n \n - | \n \n \n 89 | \n \n \n - | \n \n \n 136 | \n \n \n - | \n \n \n - | \n \n \n 136 | \n
| \n \n Net foreign investment hedges | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 26 | \n \n \n 26 | \n
| \n \n Total derivative assets | \n \n \n 20 | \n \n \n 441 | \n \n \n 14 | \n \n \n 10 | \n \n \n 485 | \n \n \n 66 | \n \n \n 616 | \n \n \n 53 | \n \n \n 36 | \n \n \n 771 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Represented 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 - Aegon risk | \n \n \n - | \n \n \n 441 | \n \n \n - | \n \n \n 4 | \n \n \n 445 | \n \n \n - | \n \n \n 616 | \n \n \n - | \n \n \n 26 | \n \n \n 643 | \n
| \n \n Derivatives - Policyholder risk | \n \n \n 20 | \n \n \n - | \n \n \n 14 | \n \n \n 6 | \n \n \n 40 | \n \n \n 66 | \n \n \n - | \n \n \n 53 | \n \n \n 10 | \n \n \n 129 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities designated as: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other derivatives | \n \n \n 91 | \n \n \n 412 | \n \n \n 86 | \n \n \n 8 | \n \n \n 597 | \n \n \n 157 | \n \n \n 983 | \n \n \n 135 | \n \n \n 56 | \n \n \n 1,331 | \n
| \n \n 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 Cash flow hedges | \n \n \n - | \n \n \n 869 | \n \n \n - | \n \n \n - | \n \n \n 869 | \n \n \n - | \n \n \n 1,100 | \n \n \n - | \n \n \n - | \n \n \n 1,100 | \n
| \n \n Net foreign investment hedges | \n \n \n - | \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 | \n \n \n 2 | \n
| \n \n Total derivative liabilities | \n \n \n 91 | \n \n \n 1,283 | \n \n \n 86 | \n \n \n 8 | \n \n \n 1,469 | \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 Represented 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 - Aegon risk | \n \n \n - | \n \n \n 1,283 | \n \n \n - | \n \n \n 2 | \n \n \n 1,285 | \n \n \n - | \n \n \n 2,085 | \n \n \n - | \n \n \n 44 | \n \n \n 2,129 | \n
| \n \n Derivatives - Policyholder risk | \n \n \n 91 | \n \n \n - | \n \n \n 86 | \n \n \n 6 | \n \n \n 184 | \n \n \n 157 | \n \n \n - | \n \n \n 135 | \n \n \n 14 | \n \n \n 306 | \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 in the Contractual Service Margin. For more details see note 29.5 Risk\u00a0mitigation.
\n| \n | \n\n \n Derivative asset | \n \n \n Derivative liability | \n ||
| \n \n Derivatives not designated in a hedge - Aegon risk | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Derivatives held as an economic hedge | \n \n \n 350 | \n \n \n 477 | \n \n \n 339 | \n \n \n 954 | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n - | \n \n \n 75 | \n \n \n 71 | \n
| \n \n Total | \n \n \n 350 | \n \n \n 477 | \n \n \n 414 | \n \n \n 1,025 | \n
Aegon uses derivative instruments as part of its asset-liability risk management. These derivatives are classified as economic hedges when they do not qualify for hedge accounting or when Aegon opts not to apply it. Economic hedges address risks related to existing assets, liabilities, or future reinvestments. All hedges follow internal risk guidelines and are closely monitored for compliance. Derivatives embedded in financial liabilities (various institutional products) that are not closely related to the host contracts have been bifurcated and recorded at fair value.
\nAegon has entered into free-standing credit derivative transactions. The positions outstanding at the end of the year were:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||
| \n | \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 4 | \n \n \n - | \n
| \n \n AA | \n \n \n 26 | \n \n \n - | \n \n \n 111 | \n \n \n 1 | \n
| \n \n A | \n \n \n 699 | \n \n \n 1 | \n \n \n 1,233 | \n \n \n 16 | \n
| \n \n BBB | \n \n \n 934 | \n \n \n 25 | \n \n \n 2,310 | \n \n \n 50 | \n
| \n \n BB | \n \n \n 41 | \n \n \n - | \n \n \n 141 | \n \n \n 1 | \n
| \n \n B or lower | \n \n \n 62 | \n \n \n 1 | \n \n \n 51 | \n \n \n - | \n
| \n \n Total | \n \n \n 1,766 | \n \n \n 27 | \n \n \n 3,851 | \n \n \n 68 | \n
Aegon uses credit default swaps (CDS) to synthetically create bonds via Replication (Synthetic Asset) Transactions (RSAT).\u00a0This regulatory concept allows insurance companies to use a derivative alongside a cash investment to replicate the\u00a0characteristics of an otherwise permissible investment. There are three main types of RSAT transactions used by Aegon: single-asset replications, RSATs involving indices, and RSATs involving asset baskets.
\nAegon 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. No underlying principal amounts are exchanged.
Aegon has also entered into cross-currency interest rate swap agreements that convert certain foreign-currency fixed- and floating-rate assets and liabilities into US-dollar floating-rate assets and liabilities. These agreements include exchanging underlying principal amounts.
\nAegon has primarily entered into interest rate swap agreements that convert certain variable-rate assets and liabilities to a fixed-rate basis to more closely match the cash flows of assets and liabilities within Aegon\u2019s portfolio. No underlying principal amounts are exchanged. Aegon hedges its exposure to future cash flow variability from interest rate movements for hedges converting existing floating-rate assets and liabilities to fixed-rate assets, with maturities up to 19 years.
Aegon uses forward-starting interest rate swap agreements to hedge the variability in future cash flows associated with the\u00a0forecasted purchase of fixed-income assets. These agreements reduce the impact of future interest rate changes on the\u00a0forecasted transaction. Fair value adjustments for these interest rate swaps are deferred and recorded in equity until the\u00a0forecasted transaction occurs, at which time the swaps will be terminated. The accumulated gain\u00a0or\u00a0loss in equity will be amortized into investment income as the acquired asset affects income. Aegon hedges its exposure to future cash flow variability from interest rate movements for terms up to 18 years. The cash flows from these hedging instruments are\u00a0expected to affect the profit or loss for approximately the next 37 years. For the year ended December 31, 2025, the\u00a0contracts for which cash flow hedge accounting was terminated resulted in deferred gains of EUR 73 million (2024: EUR\u00a055 million), recognized directly in equity to be reclassified as net result during the period when the cash flows of the underlying hedged items occur. In 2025, 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 forecast transactions, at\u00a0which point the hedges were unwound.
In addition, Aegon uses cross-currency swaps to convert variable or fixed foreign-currency cash flows into fixed local-currency cash flows. The cash flows from these hedging instruments are expected to occur over the next 31 years. These\u00a0agreements include exchanging underlying principal amounts.
| \n \n \n \n Hedge ineffectiveness and reclassification of gains/(losses) \n | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Hedge ineffectiveness on cash flow hedges | \n \n \n 2 | \n \n \n - | \n \n \n 3 | \n
| \n \n Gains/(losses) reclassified from equity into the income statement | \n \n \n 27 | \n \n \n 42 | \n \n \n 20 | \n
| \n \n Expected deferred gain/(loss) to be reclassified from equity into net result during the next 12 months | \n \n \n 84 | \n \n \n 88 | \n \n \n 114 | \n
The periods when the contractual, undiscounted cash flows are expected to occur are as follows:
| \n \n 2025 | \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 | \n
| \n \n Cash inflows | \n \n \n 449 | \n \n \n 308 | \n \n \n 299 | \n \n \n 235 | \n \n \n 241 | \n \n \n 4,348 | \n \n \n 5,881 | \n
| \n \n Cash outflows | \n \n \n 436 | \n \n \n 280 | \n \n \n 237 | \n \n \n 221 | \n \n \n 223 | \n \n \n 7,828 | \n \n \n 9,224 | \n
| \n \n Net cash flows | \n \n \n 13 | \n \n \n 28 | \n \n \n 62 | \n \n \n 14 | \n \n \n 18 | \n \n \n \n \n (3,479) \n | \n \n \n \n \n (3,343) \n | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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
Aegon 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 reflects 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.
\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 2025 | \n \n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n Maturity | \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 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\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\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 17 | \n \n \n 11 | \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\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 - | \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\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\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 3,770 | \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 3.08% | \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\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 185 | \n \n \n 1,271 | \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 1.14 | \n \n \n 1.13 | \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 USD/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.88 | \n \n \n 0.88 | \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 - | \n \n \n - | \n \n \n - | \n \n \n 0.74 | \n \n \n 0.76 | \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 - | \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\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\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n 321 | \n \n \n 438 | \n \n \n - | \n \n \n - | \n \n \n - | \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 1.18 | \n \n \n 1.18 | \n \n \n - | \n \n \n - | \n \n \n - | \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 0.81 | \n \n \n 0.88 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.21 | \n \n \n 1.21 | \n \n \n - | \n \n \n - | \n \n \n - | \n
Hedging instruments recorded as \"Derivatives\" in the consolidated statement of financial position:
| \n | \n\n | \n\n | \n\n | \n\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n
| \n \n Carrying amounts | \n \n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n FV change1 | \n \n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n FV change1 | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 28 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 32 | \n \n \n - | \n \n \n 3 | \n \n \n 2 | \n
| \n \n Foreign exchange contracts | \n \n \n 8 | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \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\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 3,770 | \n \n \n 9 | \n \n \n 833 | \n \n \n 134 | \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 1,456 | \n \n \n 81 | \n \n \n 36 | \n \n \n \n \n (59) \n | \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\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n 760 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 27 | \n \n \n 26 | \n \n \n 2 | \n \n \n - | \n
Hedged exposures covered by the above-described hedging instruments in the consolidated statement of financial position:
| \n | \n\n \n Carrying amounts | \n \n \n Accumulated amount 1 | \n \n | \n\n | \n||
| \n \n Fair value hedges | \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 FV change2 | \n
| \n \n 2025 | \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 57 | \n \n \n - | \n \n \n \n \n (17) \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 DPF | \n \n \n - | \n
| \n \n Synthetic Asset Fair value hedges | \n \n \n 241 | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n Investments | \n \n \n \n \n (13) \n | \n
| \n \n 2024 | \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 DPF | \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 2025 | \n \n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n FV change1 | \n \n \n Continuing2 | \n \n \n Discontinued2 | \n \n \n FV change1 | \n \n \n Continuing2 | \n \n \n Discontinued2 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Synthetic Asset Cash flow hedges | \n \n \n 242 | \n \n \n 121 | \n \n \n - | \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 18 | \n \n \n \n \n (408) \n | \n \n \n \n \n (7) \n | \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 5 | \n \n \n \n \n (29) \n | \n \n \n 895 | \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 23 | \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 - | \n \n \n - | \n \n \n 3 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments in foreign operations | \n \n \n - | \n \n \n \n \n (331) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (383) \n | \n \n \n - | \n
Counterparty default
Expected future transactions fail to occur as projected: the hedging instrument (that is, FSS) terms are already known and easily valued. However, the hedged item consists of one or more forecasted asset purchases for which we cannot precisely project the dates, coupon rates, and other underlying terms. Given the unknown variables in the hedged item, for the period during which the FSS remains in inventory and the forecasted transactions have not been completed, the hedged item portion of this relationship will be set up assuming identical dates and rates to those outlined in the hedging instrument.
When the forecasted transaction (that is, bond purchase) is completed and the terms of the underlying hedged item are known, hedge ineffectiveness would possibly arise if the timing of the asset being purchased differs from the unwind date of the swaps designated as the hedging instrument, or the coupon rate of the asset being purchased differs from the coupon rate on the receive leg of the swap, or a combination of both.
The hedge ineffectiveness would possibly arise if the timing of the asset being purchased differs from the unwind date of the swaps designated as the hedging instrument, or the coupon rate of the asset being purchased differs from the coupon rate on the receive leg of the swap, or a combination of both.
Mismatch of critical terms: If critical terms do not match between the hedged item and the hedged instrument, hedge ineffectiveness can arise.
Counterparty default
The counterpart default sources listed above indicate that if the counterparty fails to fulfill the contract, the hedge
will not\u00a0be highly effective. All derivatives in\u00a0this program are collateralized or cleared, so the impact from this credit risk
will not dominate the hedge relationship.
Regarding Fair value hedges, hedge ineffectiveness recognized in\u00a0the profit or loss on Interest rate contracts was EUR\u00a00\u00a0million in 2025 (2024: EUR (2) million).\u00a0The amount recognized in\u00a0the profit or loss as ineffectiveness of cash flow and\u00a0net investment hedges was 0 in 2025 (2024: 0).
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\u00a0net\u00a0position gains and losses. Refer to note 25 Shareholders' equity for more details on these items.
\nThe following table shows the reconciliation 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 2025 | \n \n \n 2024 | \n ||
| \n \n CDSs | \n \n \n Nominal amount | \n \n \n Fair value | \n \n \n Nominal amount | \n \n \n Fair value | \n
| \n \n On January 1 | \n \n \n 3,851 | \n \n \n 68 | \n \n \n 4,043 | \n \n \n 71 | \n
| \n \n Increase/(Decrease) during the year | \n \n \n \n \n (2,086) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (192) \n | \n \n \n \n \n (2) \n | \n
| \n \n On December 31 | \n \n \n 1,766 | \n \n \n 27 | \n \n \n 3,851 | \n \n \n 68 | \n
| \n \n Deferred transaction costs for investment management services | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 490 | \n \n \n 447 | \n
| \n \n Costs deferred during the year | \n \n \n 43 | \n \n \n 35 | \n
| \n \n Amortization through income statement | \n \n \n \n \n (23) \n | \n \n \n \n \n (22) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (57) \n | \n \n \n 30 | \n
| \n \n On December 31 | \n \n \n 452 | \n \n \n 490 | \n
| \n \n Current | \n \n \n 22 | \n \n \n 22 | \n
| \n \n Non-current | \n \n \n 430 | \n \n \n 468 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Receivables from policyholders | \n \n \n 132 | \n \n \n 118 | \n
| \n \n Receivables from brokers and agents | \n \n \n 306 | \n \n \n 270 | \n
| \n \n Cash outstanding from assets sold | \n \n \n 394 | \n \n \n 176 | \n
| \n \n Trade receivables | \n \n \n 475 | \n \n \n 654 | \n
| \n \n Cash collateral | \n \n \n 455 | \n \n \n 515 | \n
| \n \n Income tax receivable | \n \n \n 146 | \n \n \n 286 | \n
| \n \n Other | \n \n \n 1,581 | \n \n \n 1,828 | \n
| \n \n Expected credit losses | \n \n \n \n \n (17) \n | \n \n \n \n \n (18) \n | \n
| \n \n On December 31 | \n \n \n 3,472 | \n \n \n 3,830 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 3,352 | \n \n \n 3,736 | \n
| \n \n Non-current | \n \n \n 121 | \n \n \n 94 | \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 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n \n \n (18) \n | \n \n \n \n \n (10) \n | \n
| \n \n Expected credit losses | \n \n \n \n \n (6) \n | \n \n \n \n \n (9) \n | \n
| \n \n Other movements | \n \n \n 7 | \n \n \n 1 | \n
| \n \n On December 31 | \n \n \n \n \n (17) \n | \n \n \n \n \n (18) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Accrued interest | \n \n \n 700 | \n \n \n 812 | \n
| \n \n On December 31 | \n \n \n 700 | \n \n \n 812 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 700 | \n \n \n 812 | \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, 2025 | \n \n \n 500 | \n \n \n 923 | \n \n \n 454 | \n \n \n 95 | \n \n \n 1,972 | \n
| \n \n Shares granted / Share options cost incurred | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 37 | \n \n \n 37 | \n
| \n \n Shares vested / Share options forfeited | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (31) \n | \n \n \n \n \n (31) \n | \n
| \n \n On December 31, 2025 | \n \n \n 500 | \n \n \n 923 | \n \n \n 454 | \n \n \n 101 | \n \n \n 1,978 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 Perpetual contingent convertible securities | \n \n \n Coupon rate | \n \n \n Coupon date | \n \n \n Year of next call | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 include subordination provisions, ranking junior to all other liabilities and senior only to\u00a0shareholders' equity. 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 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n USD 500 million | \n \n \n floating CMS rate 1 | \n \n \n Quarterly, July 15 | \n \n \n 2026 | \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 2026 | \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 include subordination provisions, ranking junior to all other liabilities and\u00a0senior only to shareholders' equity. 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 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 EUR 114 million | \n \n \n 3.568% 1, 4 | \n \n \n Annually, June 8 | \n \n \n 2035 | \n \n \n 114 | \n \n \n 114 | \n \n \n 114 | \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 bonds' terms include provisions for deferring coupon payments. \u200b\u200b\u200b\u200bAlthough 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 the 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 2025 | \n \n \n 2024 | \n
| \n \n Fixed to floating subordinated notes | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n USD 800 million | \n \n \n 5.5% 2 | \n \n \n Semi-annually, April 11 | \n \n \n 2018/48 | \n \n \n 2028 | \n \n \n 680 | \n \n \n 770 | \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 2026 | \n \n \n 781 | \n \n \n 883 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n | \n\n \n 1,461 | \n \n \n 1,653 | \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 1,312 | \n \n \n 1,490 | \n
These securities are subordinated and rank senior to the junior perpetual capital securities and the perpetual contingent convertible securities, equally with the perpetual cumulative subordinated bonds and junior to all other liabilities. The terms of\u00a0the securities include provisions for deferring coupon payments. 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 2025 | \n \n \n 2024 | \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 57 | \n \n \n 66 | \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 42 | \n \n \n 47 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n | \n\n \n 99 | \n \n \n 113 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value | \n \n | \n\n | \n\n | \n\n | \n\n \n 118 | \n \n \n 133 | \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 include provisions for deferring distributions for extension periods up to 10 consecutive semi-annual periods. The trust pass-through securities are subordinated to all other unsubordinated borrowings and liabilities of Transamerica Corporation.
There were no defaults or breaches of conditions during the period.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Aegon risk | \n \n \n 12,652 | \n \n \n 12,592 | \n
| \n \n - Institutional guaranteed products | \n \n \n 157 | \n \n \n 182 | \n
| \n \n - Fixed annuities | \n \n \n 12,466 | \n \n \n 12,378 | \n
| \n \n - Other | \n \n \n 29 | \n \n \n 32 | \n
| \n | \n\n | \n\n | \n
| \n \n Policyholder risk | \n \n \n 85,161 | \n \n \n 79,078 | \n
| \n | \n\n | \n\n | \n
| \n \n Total investment contracts without DPF | \n \n \n 97,814 | \n \n \n 91,669 | \n
| \n | \n\n \n Aegon risk | \n \n \n Policyholder risk | \n ||
| \n \n Movement schedule | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Opening balance | \n \n \n 12,592 | \n \n \n 10,222 | \n \n \n 79,078 | \n \n \n 65,044 | \n
| \n \n Deposits | \n \n \n 1,798 | \n \n \n 1,595 | \n \n \n 15,135 | \n \n \n 14,932 | \n
| \n \n Withdrawals | \n \n \n \n \n (1,653) \n | \n \n \n \n \n (1,236) \n | \n \n \n \n \n (12,788) \n | \n \n \n \n \n (11,807) \n | \n
| \n \n Interest credited | \n \n \n 354 | \n \n \n 288 | \n \n \n 11,004 | \n \n \n 8,467 | \n
| \n \n Fund charges released | \n \n \n \n \n (15) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (384) \n | \n \n \n \n \n (367) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,535) \n | \n \n \n 755 | \n \n \n \n \n (6,241) \n | \n \n \n 3,868 | \n
| \n \n Transfer to/from other headings | \n \n \n 1,113 | \n \n \n 1,038 | \n \n \n \n \n (647) \n | \n \n \n \n \n (1,060) \n | \n
| \n \n Other movements | \n \n \n \n \n (2) \n | \n \n \n \n \n (58) \n | \n \n \n 4 | \n \n \n 1 | \n
| \n \n Closing balance | \n \n \n 12,652 | \n \n \n 12,592 | \n \n \n 85,161 | \n \n \n 79,078 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Capital funding | \n \n \n 1,396 | \n \n \n 1,533 | \n
| \n \n Operational funding | \n \n \n 586 | \n \n \n 1,480 | \n
| \n \n On December 31 | \n \n \n 1,982 | \n \n \n 3,013 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 10 | \n \n \n 37 | \n
| \n \n Non-current | \n \n \n 1,972 | \n \n \n 2,976 | \n
| \n | \n\n | \n\n | \n
| \n \n Fair value of borrowings | \n \n \n 2,059 | \n \n \n 3,076 | \n
Aegon\u2019s borrowings are defined separately as capital funding and operational funding. Capital funding includes debt securities issued for general corporate purposes and to capitalize its business units. Capital funding is part of the Company\u2019s total capitalization\u00a0and is used to finance its subsidiaries and the cash held at the holding company. Operational funding includes debt securities issued to finance dedicated asset pools. 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 6 million positive (2024: EUR 8 million positive).
\nA detailed composition of capital funding is included in the following table:
| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n 2025 | \n \n \n 2024 | \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 647 | \n \n \n 731 | \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 286 | \n \n \n 301 | \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 455 | \n \n \n 480 | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n \n 9 | \n \n \n 20 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 1,396 | \n \n \n 1,533 | \n
These loans are considered senior debt in calculating financial leverage in note 37 Capital management and solvency.
\nIn 2025, the operational funding decreased by EUR 895 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 2025 | \n \n \n 2024 | \n
| \n \n FHLB Secured borrowings 1 | \n \n \n Fixed | \n \n \n Quarterly | \n \n \n 2022 / 26 | \n \n \n 554 | \n \n \n 1,449 | \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 586 | \n \n \n 1,480 | \n
The floating-rate undrawn committed borrowing facilities expiring beyond one year amounted to EUR 1,351 million on
December\u00a031, 2025 (2024: EUR 1,544 million). The decrease of the facilities was the result of net exchange differences.
There were no defaults or breaches of conditions during the period.
\nThe estimated fair values of Aegon\u2019s assets and liabilities reflect the amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
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\u00a0prices) 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. An active market involves regular, arm\u2019s length transactions, and fair value excludes forced or distressed sales. If no active market exists or quoted market prices are not available, fair value is estimated using observable market data, such as external quotes and valuation techniques.
Unobservable inputs reflect Aegon\u2019s assumptions about market participants\u2019 pricing, including risk, based on the best available information.
Aegon maintains oversight of financial instrument valuation through a structure that ensures proper segregation of duties. Senior management, independent of investment functions, oversees valuation controls and reporting. For externally sourced fair values, independent validation is used to confirm inputs. Details of these validation processes follow.
Asset and liability valuation follows a pricing hierarchy to ensure a controlled, consistent process that relies on reliable sources with minimal manual input. Depending on asset type, the hierarchy begins with market index prices and proceeds to\u00a0third-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 2025 | \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 Shares | \n \n \n 5 | \n \n \n - | \n \n \n 5 | \n \n \n 10 | \n
| \n \n Debt securities | \n \n \n 4,165 | \n \n \n 42,717 | \n \n \n 528 | \n \n \n 47,411 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,102 | \n \n \n 207 | \n \n \n - | \n \n \n 2,308 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 27 | \n \n \n 1 | \n \n \n 28 | \n
| \n \n Total financial assets measured at FVOCI | \n \n \n 6,272 | \n \n \n 42,951 | \n \n \n 533 | \n \n \n 49,757 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 179 | \n \n \n 30 | \n \n \n 54 | \n \n \n 263 | \n
| \n \n Debt securities | \n \n \n 253 | \n \n \n 2,075 | \n \n \n 110 | \n \n \n 2,438 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,708 | \n \n \n 160 | \n \n \n - | \n \n \n 1,868 | \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 18 | \n \n \n 716 | \n \n \n 3,987 | \n \n \n 4,721 | \n
| \n \n Derivatives | \n \n \n 14 | \n \n \n 464 | \n \n \n 8 | \n \n \n 485 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 42 | \n \n \n 42 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 437 | \n \n \n 437 | \n
| \n \n Investments - Policyholder risk | \n \n \n 89,715 | \n \n \n 125,710 | \n \n \n 389 | \n \n \n 215,814 | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 91,886 | \n \n \n 129,156 | \n \n \n 5,109 | \n \n \n 226,151 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Real estate held for own use (revalued amount) \n | \n \n \n - | \n \n \n - | \n \n \n 56 | \n \n \n 56 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 98,158 | \n \n \n 172,107 | \n \n \n 5,699 | \n \n \n 275,964 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder risk | \n \n \n - | \n \n \n 85,161 | \n \n \n - | \n \n \n 85,161 | \n
| \n \n Derivatives | \n \n \n 50 | \n \n \n 1,419 | \n \n \n - | \n \n \n 1,469 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 50 | \n \n \n 86,580 | \n \n \n - | \n \n \n 86,630 | \n
| \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 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 Total financial assets measured at FVOCI | \n \n \n 7,592 | \n \n \n 46,320 | \n \n \n 803 | \n \n \n 54,715 | \n
| \n | \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 - Policyholder risk | \n \n \n 97,682 | \n \n \n 119,829 | \n \n \n 312 | \n \n \n 217,824 | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 100,146 | \n \n \n 123,414 | \n \n \n 5,567 | \n \n \n 229,127 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Real estate held for own use (revalued amount) \n | \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\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder 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
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. Transfers are identified by transaction volume and frequency, which indicate an active market. The table below shows significant transfers between Level I and Level II for financial assets and financial liabilities recorded at fair value on a recurring basis. There was no transfer between Level I and Level II during 2025.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Level I to Level II | \n \n \n Level II to Level I | \n \n \n Level I to Level II | \n \n \n Level II to Level I | \n
| \n \n Debt securities | \n \n \n - | \n \n \n - | \n \n \n 308 | \n \n \n 261 | \n
| \n \n Money market and other short-term investments | \n \n \n - | \n \n \n - | \n \n \n 48 | \n \n \n - | \n
| \n \n Total financial assets measured at FVOCI | \n \n \n - | \n \n \n - | \n \n \n 356 | \n \n \n 261 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n - | \n \n \n - | \n \n \n 11 | \n \n \n 4 | \n
| \n \n Total financial assets measured at FVPL | \n \n \n - | \n \n \n - | \n \n \n 11 | \n \n \n 4 | \n
| \n \n Total financial assets measured at fair value | \n \n \n - | \n \n \n - | \n \n \n 367 | \n \n \n 265 | \n
The 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\n \n On January 1, 2025 | \n \n \n Disposal of a business | \n \n \n Total gains / (losses) in income statement 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 difference | \n \n \n Reclas- sification | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total URGL for the period 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
| \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 - | \n \n \n 5 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 799 | \n \n \n - | \n \n \n 7 | \n \n \n 5 | \n \n \n 124 | \n \n \n \n \n (82) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (84) \n | \n \n \n - | \n \n \n 71 | \n \n \n \n \n (226) \n | \n \n \n 528 | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \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 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\n | \n
| \n \n Total FVOCI | \n \n \n 803 | \n \n \n - | \n \n \n 7 | \n \n \n 5 | \n \n \n 125 | \n \n \n \n \n (83) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (84) \n | \n \n \n - | \n \n \n 71 | \n \n \n \n \n (226) \n | \n \n \n 533 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\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 86 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 17 | \n \n \n \n \n (46) \n | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 54 | \n \n \n 7 | \n
| \n \n Debt securities | \n \n \n 107 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (1) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (13) \n | \n \n \n - | \n \n \n 23 | \n \n \n \n \n (2) \n | \n \n \n 110 | \n \n \n - | \n
| \n \n Loans | \n \n \n 82 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n 3 | \n
| \n \n Other investments | \n \n \n 4,457 | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n 463 | \n \n \n \n \n (400) \n | \n \n \n - | \n \n \n \n \n (525) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,987 | \n \n \n 16 | \n
| \n \n Derivatives | \n \n \n 9 | \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 - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n \n \n \n \n (1) \n | \n
| \n \n Investments in real estate | \n \n \n 57 | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 42 | \n \n \n 13 | \n
| \n \n Investments in real estate for policyholders | \n \n \n 457 | \n \n \n - | \n \n \n 8 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (16) \n | \n \n \n - | \n \n \n \n \n (24) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 437 | \n \n \n 19 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments - Policyholder risk | \n \n \n 312 | \n \n \n \n \n (14) \n | \n \n \n \n \n (36) \n | \n \n \n - | \n \n \n 320 | \n \n \n \n \n (38) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (127) \n | \n \n \n 389 | \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 \n Total FVPL | \n \n \n 5,567 | \n \n \n \n \n (14) \n | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n 827 | \n \n \n \n \n (530) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (614) \n | \n \n \n 1 | \n \n \n 23 | \n \n \n \n \n (129) \n | \n \n \n 5,109 | \n \n \n 57 | \n
| \n | \n\n | \n\n | \n\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 66 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n 56 | \n \n \n - | \n
| \n \n Total financial assets | \n \n \n 6,436 | \n \n \n \n \n (14) \n | \n \n \n \n \n (10) \n | \n \n \n 6 | \n \n \n 952 | \n \n \n \n \n (614) \n | \n \n \n \n \n (91) \n | \n \n \n \n \n (706) \n | \n \n \n - | \n \n \n 93 | \n \n \n \n \n (355) \n | \n \n \n 5,699 | \n \n \n 57 | \n
| \n | \n\n \n On January 1, 2024 | \n \n \n Total gains / (losses) in income statement 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 difference | \n \n \n Reclas- sification | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total URGL for the period 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 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\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 FVOCI | \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 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 | \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\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments - Policyholder 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\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 FVPL | \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 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 Total financial assets | \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 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 Total financial liabilities | \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
In\u00a02024\u00a0and\u00a02025,\u00a0Aegon\u00a0transferred\u00a0certain\u00a0financial\u00a0instruments\u00a0from\u00a0Level\u00a0I\u00a0and\u00a0II\u00a0to\u00a0Level\u00a0III\u00a0of\u00a0the\u00a0fair\u00a0value\u00a0hierarchy. The\u00a0change in level resulted from decreased market liquidity for these securities, which reduced price observability. Prior to transfer, the fair value for the Level II securities was\u00a0determined\u00a0using observable market\u00a0transactions, internal models, or corroborated broker quotes, respectively,\u00a0for the same or similar instruments.\u00a0Since\u00a0the\u00a0transfer,\u00a0all\u00a0such\u00a0assets\u00a0have\u00a0been\u00a0valued\u00a0using\u00a0valuation\u00a0models\u00a0incorporating\u00a0significant\u00a0non-market-observable\u00a0inputs or uncorroborated broker quotes.
Similarly, during 2024 and 2025, 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 the fair value could be determined using observable market transactions or corroborated broker quotes for the same or similar instruments.
\nThe\u00a0table\u00a0below\u00a0presents\u00a0information\u00a0on the valuation techniques and significant unobservable inputs used in recurring fair value measurements of\u00a0certain Level III financial instruments.
During 2024 and 2025, no valuation techniques or significant unobservable inputs were applied in the measurement of financial liabilities.
| \n | \n\n \n Valuation technique 1 | \n \n \n Significant unobservable input 2 | \n \n \n December 31, 2025 | \n \n \n \n \n Range (weighted average) \n | \n \n \n December 31, 2024 | \n \n \n \n \n Range (weighted average) \n | \n
| \n \n Financial assets | \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 5 | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 449 | \n \n \n n.a. | \n \n \n 688 | \n \n \n n.a. | \n
| \n | \n\n \n Discounted cash flow | \n \n \n Constant Prepayment Rate | \n \n \n - | \n \n \n - | \n \n \n 28 | \n \n \n 21.11% | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 79 | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 528 | \n \n | \n\n \n 799 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n Other | \n \n \n n.a. | \n \n \n 1 | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n \n Total FVOCI | \n \n | \n\n | \n\n \n 533 | \n \n | \n\n \n 799 | \n \n | \n
| \n | \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 50 | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n
| \n | \n\n \n Broker quote | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n \n \n 3 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 96 | \n \n \n n.a. | \n \n \n 94 | \n \n \n n.a. | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 14 | \n \n \n n.a. | \n \n \n 13 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 164 | \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 | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 3,220 | \n \n | \n\n \n 3,633 | \n \n | \n
| \n \n Tax credit investments | \n \n \n Discounted cash flow | \n \n \n Discount rate | \n \n \n 766 | \n \n \n 6.71% | \n \n \n 823 | \n \n \n 6.72% | \n
| \n \n Loans | \n \n \n Other | \n \n \n n.a. | \n \n \n 82 | \n \n | \n\n \n 82 | \n \n | \n
| \n \n Total FVPL | \n \n | \n\n | \n\n \n 4,068 | \n \n | \n\n \n 4,538 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets 3 | \n \n | \n\n | \n\n \n 4,765 | \n \n | \n\n \n 5,530 | \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 amount 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 | \n ||
| \n \n On December 31, 2025 | \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 9,672 | \n \n \n - | \n \n \n 1 | \n \n \n 8,901 | \n \n \n 8,902 | \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 1,461 | \n \n \n 692 | \n \n \n 620 | \n \n \n - | \n \n \n 1,312 | \n
| \n \n Trust pass-through securities - held at amortized cost | \n \n \n 99 | \n \n \n - | \n \n \n 118 | \n \n \n - | \n \n \n 118 | \n
| \n \n Borrowings \u2013 held at amortized cost | \n \n \n 1,982 | \n \n \n 837 | \n \n \n 1,221 | \n \n \n - | \n \n \n 2,059 | \n
| \n \n Investment contracts - held at amortized cost | \n \n \n 12,652 | \n \n \n - | \n \n \n - | \n \n \n 9,473 | \n \n \n 9,473 | \n
| \n \n December 31, 2024 | \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 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
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 is 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 is the best approximation of 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.
For unquoted shares, fair value may be estimated using alternative methods, such as analyzing price/earnings or price/cash\u00a0flow\u00a0ratios\u00a0of\u00a0comparable\u00a0quoted\u00a0companies.\u00a0Valuations\u00a0are\u00a0adjusted\u00a0for\u00a0company-specific\u00a0factors\u00a0and\u00a0the\u00a0inherent\u00a0illiquidity\u00a0of unquoted investments, typically based on available market data. Management also considers\u00a0factors such as current performance, changes in market outlook, and the third-party financing environment.
Included in this category are shares in a Federal Home Loan Bank (FHLB) for an amount of EUR 36 million (2024: EUR 77 million), which are reported as part of the line-item Net asset value. An 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. Aegon values debt securities using quoted market prices when available. Prices are first sourced from indices and third-party services. If unavailable, broker quotes, mostly non-binding, are used. Each quote is reviewed by Aegon to ensure it reflects the most appropriate estimate of fair value.
When broker quotes are unavailable, 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 third-party valuation methodologies, Aegon reviews and monitors the relevant documentation from pricing services. Any methodology changes are noted and assessed for reasonableness. Aegon also conducts in-depth, sample-based reviews of prices received, aiming to corroborate assumptions, inputs, and methodologies against documented standards. Only providers with strong market presence and proven expertise are used.
Third-party pricing services often base valuations on recent trades of identical or similar securities, adjusting for time elapsed and market data. When recent trades are unavailable, they apply modeling techniques using expected cash flows and market-based discount rates.
Aegon periodically analyzes inputs from pricing services and brokers to ensure they yield reasonable fair value estimates. Asset and valuation specialists consider both qualitative and quantitative factors, including recent transactions in similar debt securities, pricing trends, and relevant market events. Additional controls include validation checks such as exception reports for significant price changes, stale prices, or unpriced securities. Back testing is also performed by comparing sample trade prices with those used in financial reporting, with significant variances investigated.
Credit ratings are considered in assessing security risk but are not solely relied upon. Aegon uses an internal process based on market-observable inputs to form its risk view.
Private placement securities (classified as fair value through OCI or profit or loss) are valued using matrix pricing from a third-party provider, based on weighted average life, credit rating, and sector. Asset specialists review the matrix monthly, comparing spreads to market data. Other valuation inputs include coupon rate, interest rate curves, and liquidity premiums, which are based on recent private placement transactions. The liquidity premium\u2019s impact on 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 monthly. If Aegon must use internal valuation models, key inputs are based on relative value analyses that compare instruments with similar collateral and risk profiles. Market-standard models may be used to reflect each transaction\u2019s collateral composition and cash flow structure. The most significant unobservable input is the liquidity premium embedded in the discount rate.
\nCorporate bond valuations are monitored and reviewed monthly. The pricing hierarchy depends on the ability to corroborate market prices. When unavailable, valuations are based on discounted cash flow using an internally calculated yield, which includes a credit spread over an observable benchmark. The credit spread combines observable and unobservable inputs. Aegon begins with a credit spread from a similar bond by the same issuer and adjusts it for unobservable factors such as subordination, liquidity, and maturity. In 2025, no corporate bonds met the threshold for internal modeling.
\nWhen available, Aegon uses quoted market prices in active markets to determine the fair value of its government debt investments. When Aegon cannot use quoted market prices, it uses market prices from indices or quotes from third-party pricing services or brokers.
\nThe fair value of assets maturing within a year is 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\u00a0not market observable.
\nThe Level III fair value of tax credit investments is determined using a discounted cash flow approach. This takes into account projected capital contributions, distributions, future tax credits, and tax benefits from operating losses. The present value of these cash flows is calculated using a discount rate, generally based on the timing and amounts of investment outflows and tax-related inflows. These inputs are unobservable. The discount rate used was 6.7% (December 31, 2024: 6.7%).
\nFair values of non-quoted investment funds are determined by management based on information from fund managers. Aegon\u00a0reviews these valuations monthly, performing analytical and trend analyses to ensure appropriateness. The net asset value is considered the best approximation of fair value.
\nFor private loans, fixed-interest mortgage loans, and other originated loans, fair value for disclosure is estimated by discounting expected cash flows at current market rates for instruments with similar yields and maturities. For fixed interest mortgage loans, the rate is adjusted for expenses, prepayment rates, lapse assumptions (unobservable), and liquidity and credit risk (observable). Increases in expense spread or prepayment assumptions reduce fair value.
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.
\nWhen quoted market prices are unavailable, alternative valuation techniques, such as option pricing or stochastic modeling, are used. The valuation techniques incorporate all factors a typical market participant would consider and, when available, are based on observable market data. 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, such as futures and certain options, are based on quoted market prices. OTC derivatives are valued using pricing models that estimate the net present value of future cash flows, incorporating observed prices from exchange-traded and OTC trades, or external pricing services. Most valuations rely on swap and volatility matrices built from current market data. Option pricing uses standard models and market levels. Complex or illiquid instruments are priced using internal models or independent third parties, with extrapolation applied for long-dated illiquid contracts to estimate unobservable inputs.
Some OTC derivatives are longevity derivatives, with payouts linked to public mortality tables. These are valued at the present value of expected payouts plus a risk margin. Expected payouts are based on the best-estimate mortality developments, while the risk margin is derived by stressing these estimates and applying a cost-of-capital approach. Depending on the swap\u2019s duration, the most significant unobservable input is either projected mortality or the discount rate.
Aegon normally mitigates counterparty credit risk in derivative contracts by entering into collateral agreements where practical and by using 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 real estate investments and real estate held for own use are conducted by independent external appraisers at least every three to five years and reviewed annually by qualified internal appraisers to ensure fair value at the reporting date. While appraisals vary by local market, they follow standards such as the International Valuation Standards, the Uniform Standards of Professional Appraisal Practice, or Investment Property Databank guidelines. Valuations are primarily based on active market prices, adjusted for differences in property characteristics. When market data is unavailable, other methods are used, considering net earning power, comparable sales, or replacement cost. Discount rates reflect asset-specific cash flow risks, while capitalization rates represent the relationship between net operating income and property value. For own-use properties, appraisers estimate the present value of potential rental income.
\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). To determine the fair value of these instruments, the IFRS level hierarchy is used. The preferred method for measuring the fair value of fair value option bonds is the quoted price (Level I). In cases where markets are less liquid or quoted prices are unavailable, Aegon\u2019s valuation policy uses a pricing hierarchy that prioritizes publicly available prices sourced 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 carried at fair value (if designated through profit or loss) or amortized cost, with fair value disclosed in the notes. These contracts are not quoted in active markets, and fair values are determined using valuation techniques such as discounted cash flow, stochastic modeling, or unit-linked pricing. All models are validated and calibrated, taking into account factors such as time value, volatility, policyholder behavior, servicing costs, and comparable instruments.
For complex products, stochastic techniques are used to model dynamic cash flows under various market scenarios. Inputs include expected market returns, volatility, return correlations, discount rates, and actuarial assumptions.
Expected returns are based on risk-free rates, including Secured Overnight Financing Rate (SOFR) swap rates, associated forward rates, the Overnight Index Swap (OIS) curve, or local government bond yields. Market volatility assumptions for each index are derived from implied volatility data and/or historical performance. Correlations between indices are based on observed returns and their interrelationships over several years. Present values of projected cash flows are calculated using current risk-free spot rates. Customer behavior assumptions, such as lapses, are aligned with those used for insurance liability valuations.
\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 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments - Aegon risk | \n \n \n 7,306 | \n \n \n 2,066 | \n \n \n 7,661 | \n \n \n 2,356 | \n
| \n \n Investments - Policyholder risk | \n \n \n - | \n \n \n 216,251 | \n \n \n - | \n \n \n 218,281 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 390 | \n \n \n - | \n \n \n 606 | \n \n \n - | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 7,695 | \n \n \n 218,317 | \n \n \n 8,267 | \n \n \n 220,637 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder risk | \n \n \n - | \n \n \n 85,161 | \n \n \n - | \n \n \n 79,078 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 597 | \n \n \n - | \n \n \n 1,331 | \n \n \n - | \n
| \n \n Total financial liabilities measured at FVPL | \n \n \n 597 | \n \n \n 85,161 | \n \n \n 1,331 | \n \n \n 79,078 | \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).
\nIn 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 for asset and liability management. In accordance with the Group\u2019s accounting policies, these assets have been designated as fair value through profit or loss.
Investments where the policyholder bears the risk include assets 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.
\nWith the exception of the financial liabilities with discretionary participation features that are not subject to the classification and measurement requirements for financial instruments, all investment contracts without discretionary participation features where the policyholder bears the risk, are carried at fair value or at the fair value of the linked assets, and are included in\u00a0the 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 2025 | \n \n \n 2024 | \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 195 | \n \n \n 25,783 | \n \n \n \n \n (1,643) \n | \n \n \n 20,912 | \n
Changes in the fair value of investment contracts without discretionary participation 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 right to receive the cash flows of the transferred financial asset but assumes a contractual obligation to pay those cash flows to one or more recipients under 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:
\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);
Transferred financial assets that are derecognized in their entirety, but where Aegon has a continuing involvement;
Collateral accepted in the case of securities lending, reverse repurchase agreement, and derivative transactions; and
Collateral pledged in the case of (contingent) liabilities, repurchase agreements, securities borrowing, and derivative transactions.
The following disclosures provide details for transferred financial assets that are not derecognized in their entirety, transferred financial assets that are derecognized in their entirety, but where Aegon has continuing involvement, and assets have been accepted and pledged as collateral.
\nThe following table presents 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. It also presents the carrying amounts of the associated liabilities.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n | \n\n \n FVOCI | \n \n \n FVPL | \n \n \n FVOCI | \n \n \n FVPL | \n ||
| \n | \n\n \n Debt securities | \n \n \n Debt securities | \n \n \n Investments - Policyholder risk | \n \n \n Debt securities | \n \n \n Debt securities | \n \n \n Investments - Policyholder risk | \n
| \n \n Carrying amount of transferred assets | \n \n \n 1,629 | \n \n \n 1 | \n \n \n 88 | \n \n \n 1,628 | \n \n \n 1 | \n \n \n 39 | \n
| \n \n Carrying amount of associated liabilities | \n \n \n 1,677 | \n \n \n - | \n \n \n - | \n \n \n 1,897 | \n \n \n 1 | \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 of the risks and rewards associated with the transferred assets, including 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 recognized for the same amount, as Aegon is obligated to return it 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\u00a0note\u00a040.3 Assets accepted and note\u00a040.4 Assets pledged for an analysis of collateral accepted and pledged in relation to\u00a0securities lending and repurchase agreements.
\nAegon has no transferred financial assets with continuing involvement that are derecognized in their entirety as per year-end 2025 and year-end\u00a02024.
\nAegon receives collateral for 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.
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 2025 | \n \n \n 2024 | \n
| \n \n Carrying amount of transferred financial assets | \n \n \n 1,718 | \n \n \n 1,668 | \n
| \n \n Fair value of cash collateral received | \n \n \n 1,677 | \n \n \n 1,898 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 92 | \n \n \n 41 | \n
| \n \n Net exposure | \n \n \n \n \n (51) \n | \n \n \n \n \n (271) \n | \n
| \n \n Reverse repurchase agreements | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Cash paid for reverse repurchase agreements | \n \n \n 289 | \n \n \n 324 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 311 | \n \n \n 343 | \n
| \n \n Net exposure | \n \n \n \n \n (22) \n | \n \n \n \n \n (20) \n | \n
The above items are conducted under terms that are usual and customary for standard securities lending activities, as well as requirements set by exchanges where the bank acts as an intermediary.
For 2024 and 2025, 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.
In addition, Aegon can receive collateral on derivative transactions. The credit support agreement will typically specify the threshold at which collateral must 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, to trade derivatives across various exchanges, Aegon posts margin as collateral.
These transactions are conducted under terms that are usual and customary for standard long-term borrowing, derivative, and\u00a0securities borrowing activities, as well as requirements set 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\u00a0financial 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 amounts of collateral pledged and the corresponding contingent liabilities.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Assets pledged for general account and contingent liabilities | \n \n \n Aegon risk | \n \n \n Aegon risk | \n
| \n \n Contingent liabilities | \n \n \n 1,180 | \n \n \n 2,143 | \n
| \n \n Collateral pledged | \n \n \n 3,762 | \n \n \n 4,282 | \n
| \n \n Net exposure | \n \n \n \n \n (2,581) \n | \n \n \n \n \n (2,139) \n | \n
For 2025 and 2024, there is no Non-cash collateral that can be sold or repledged by the counterparty; no Assets pledged for repurchase agreements; no\u00a0Cash collateral\u00a0that can be sold or repledged by the counterparty.
To trade derivatives on the various exchanges, Aegon posts margin as collateral. The amount of collateral pledged for derivative transactions was EUR 2.0 billion (2024: EUR 2.8 billion).
\nThe information in this note 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 below presents the details relating to the effect (or potential effect) of enforceable master netting arrangements and similar netting arrangements, including rights to set-off, associated with the entity's recognized financial assets and financial liabilities.
| \n | \n\n \n Financial assets | \n \n \n Financial liabilities | \n ||
| \n \n Derivatives | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Gross amounts | \n \n \n 851 | \n \n \n 723 | \n \n \n 1,359 | \n \n \n 2,302 | \n
| \n \n Gross amounts set off in the statement of financial position | \n \n \n 10 | \n \n \n 5 | \n \n \n - | \n \n \n - | \n
| \n \n Net amounts presented in the statement of financial position | \n \n \n 841 | \n \n \n 718 | \n \n \n 1,359 | \n \n \n 2,302 | \n
| \n \n Financial instruments 1 | \n \n \n 369 | \n \n \n 628 | \n \n \n 710 | \n \n \n 1,537 | \n
| \n \n Cash collateral received (excluding surplus collateral) 1 | \n \n \n 66 | \n \n \n 81 | \n \n \n 602 | \n \n \n 710 | \n
| \n \n Net amount | \n \n \n 406 | \n \n \n 8 | \n \n \n 47 | \n \n \n 55 | \n
Financial assets and liabilities are offset in the statement of financial position when the Group has a legally enforceable right to offset and intends to settle the asset and the liability on a net basis, or to realize the asset and settle the liability simultaneously. As shown in the second row, there are EUR 10 million of Derivatives offset in 2025 (2024: EUR 5 million).
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 ISDA master netting agreements for each of Aegon\u2019s legal entities thereby facilitating Aegon\u2019s right to offset credit risk exposure. The credit support agreement will typically specify the threshold at which collateral must 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22624m14307p": { "value": "\nThe following table contains an analysis of Aegon\u2019s maximum credit risk exposure from financial assets.\u00a0Please\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\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 Total | \n \n \n \n \n Surplus collateral (or over- | \n \n \n Net | \n
| \n \n Debt securities | \n \n \n 56,202 | \n \n \n - | \n \n \n - | \n \n \n 53 | \n \n \n - | \n \n \n - | \n \n \n 53 | \n \n \n - | \n \n \n 56,149 | \n
| \n \n Money market and other short-term investments | \n \n \n 5,964 | \n \n \n - | \n \n \n 289 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 289 | \n \n \n 22 | \n \n \n 5,696 | \n
| \n \n Loans | \n \n \n 9,787 | \n \n \n 112 | \n \n \n - | \n \n \n 23 | \n \n \n 21,460 | \n \n \n - | \n \n \n 21,594 | \n \n \n 11,808 | \n \n \n 1 | \n
| \n \n Unconsolidated investment funds | \n \n \n 190,671 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 190,671 | \n
| \n \n Deposits with financial institutes | \n \n \n 1,727 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,727 | \n
| \n \n Other investments | \n \n \n 4,749 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,749 | \n
| \n \n Derivative assets | \n \n \n 485 | \n \n \n 124 | \n \n \n 513 | \n \n \n - | \n \n \n - | \n \n \n 213 | \n \n \n 850 | \n \n \n 406 | \n \n \n 42 | \n
| \n \n Reinsurance assets | \n \n \n 17,153 | \n \n \n - | \n \n \n 15,363 | \n \n \n 731 | \n \n \n - | \n \n \n - | \n \n \n 16,093 | \n \n \n - | \n \n \n 1,060 | \n
| \n \n On December 31, 2025 | \n \n \n 286,739 | \n \n \n 236 | \n \n \n 16,165 | \n \n \n 807 | \n \n \n 21,460 | \n \n \n 213 | \n \n \n 38,880 | \n \n \n 12,236 | \n \n \n 260,095 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 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 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 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 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 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 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 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 14,872 | \n \n \n - | \n \n \n 1,149 | \n
| \n \n On December 31, 2024 | \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 40,127 | \n \n \n 13,462 | \n \n \n 267,932 | \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 money market and short-term investments relates 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.
\nReal estate collateral for mortgages includes both residential and commercial properties. For commercial mortgage loans in Aegon Americas, collateral is measured at fair value. At least annually, the fair value of each individual property pledged as collateral is estimated. At loan origination, an external appraisal is used to estimate the property's value. In subsequent years, internal valuations are conducted using professionally accepted methods by accredited personnel. International valuation standards are used, which consider key assumptions such as replacement cost, income-generating potential, and recent sales of comparable properties. Valuations are primarily supported by market evidence.
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.
\nA significant portion of instruments have been designated as FVPL. On December 31, 2025, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 2,048 million (December 2024: EUR\u00a02,337 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following table presents changes in\u00a0fair value attributable to changes in credit risk, recognized for these investments:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n | \n\n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value during the year | \n \n \n 1 | \n \n \n 7 | \n \n \n 8 | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value | \n \n \n - | \n \n \n 45 | \n \n \n 45 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \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 method reasonably approximates credit risk impact, as fixed income valuations are primarily influenced by interest rates and credit spreads. Thus,\u00a0isolating non-credit factors allows for an estimate of credit-related fair value changes.
\nThe master netting agreements column in the table pertains to derivative liability positions that are used in Aegon's credit risk management. The offset in the master netting agreements column includes balances for which there is a legally enforceable right of offset, but no intention to settle them 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 for the reinsurance assets includes assets held in trust by the reinsurer for Aegon's benefit. Trust assets can be accessed to pay policyholder benefits if reinsurers fail to perform under their contracts. 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.
\nOn December 31, 2025, the Group held no collateral that was obtained during the year (EUR 0 in 2024) 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 non-cash collateral for its own operations.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Cash at bank and in hand | \n \n \n 1,165 | \n \n \n 1,478 | \n \n \n 1,614 | \n
| \n \n Short-term deposits | \n \n \n 315 | \n \n \n 152 | \n \n \n 340 | \n
| \n \n Money market investments | \n \n \n 1,253 | \n \n \n 1,838 | \n \n \n 2,120 | \n
| \n \n On December 31 | \n \n \n 2,733 | \n \n \n 3,469 | \n \n \n 4,074 | \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 1,972 | \n \n \n 2,240 | \n \n \n 3,416 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Income from security lending programs | \n \n \n 3 | \n \n \n 4 | \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 2.13% | \n \n \n 3.17% | \n \n \n 3.90% | \n
| \n \n \n \n Average maturity on short-term deposits (in days) \n | \n \n \n 2 | \n \n \n 5 | \n \n \n 11 | \n
The disclosed carrying amounts reasonably approximate fair values at year-end.
See note 40 Transfers of financial assets\u00a0for details on collateral received and paid. 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).\u00a0
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Receivables from policyholders | \n \n \n 132 | \n \n \n 118 | \n
| \n \n Receivables from brokers and agents | \n \n \n 306 | \n \n \n 270 | \n
| \n \n Cash outstanding from assets sold | \n \n \n 394 | \n \n \n 176 | \n
| \n \n Trade receivables | \n \n \n 475 | \n \n \n 654 | \n
| \n \n Cash collateral | \n \n \n 455 | \n \n \n 515 | \n
| \n \n Income tax receivable | \n \n \n 146 | \n \n \n 286 | \n
| \n \n Other | \n \n \n 1,581 | \n \n \n 1,828 | \n
| \n \n Expected credit losses | \n \n \n \n \n (17) \n | \n \n \n \n \n (18) \n | \n
| \n \n On December 31 | \n \n \n 3,472 | \n \n \n 3,830 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 3,352 | \n \n \n 3,736 | \n
| \n \n Non-current | \n \n \n 121 | \n \n \n 94 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Payables due to policyholders | \n \n \n 672 | \n \n \n 815 | \n
| \n \n Payables due to brokers and agents | \n \n \n 486 | \n \n \n 505 | \n
| \n \n Social security and taxes payable | \n \n \n 62 | \n \n \n 57 | \n
| \n \n Income tax payable | \n \n \n - | \n \n \n 4 | \n
| \n \n Investment creditors | \n \n \n 1,329 | \n \n \n 1,175 | \n
| \n \n Cash collateral on derivative transactions | \n \n \n 145 | \n \n \n 250 | \n
| \n \n Cash collateral on securities lent | \n \n \n 1,677 | \n \n \n 1,898 | \n
| \n \n Cash collateral - other | \n \n \n 150 | \n \n \n 92 | \n
| \n \n Lease liabilities | \n \n \n 187 | \n \n \n 216 | \n
| \n \n Other creditors | \n \n \n 1,736 | \n \n \n 2,112 | \n
| \n \n On December 31 | \n \n \n 6,445 | \n \n \n 7,124 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 6,281 | \n \n \n 6,930 | \n
| \n \n Non-current | \n \n \n 164 | \n \n \n 194 | \n
The carrying amounts disclosed are reasonable approximations of the fair values at year-end, given the predominantly current nature of the other liabilities.
\nThe following table presents 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. It also presents the carrying amounts of the associated liabilities.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n | \n\n \n FVOCI | \n \n \n FVPL | \n \n \n FVOCI | \n \n \n FVPL | \n ||
| \n | \n\n \n Debt securities | \n \n \n Debt securities | \n \n \n Investments - Policyholder risk | \n \n \n Debt securities | \n \n \n Debt securities | \n \n \n Investments - Policyholder risk | \n
| \n \n Carrying amount of transferred assets | \n \n \n 1,629 | \n \n \n 1 | \n \n \n 88 | \n \n \n 1,628 | \n \n \n 1 | \n \n \n 39 | \n
| \n \n Carrying amount of associated liabilities | \n \n \n 1,677 | \n \n \n - | \n \n \n - | \n \n \n 1,897 | \n \n \n 1 | \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 of the risks and rewards associated with the transferred assets, including 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 recognized for the same amount, as Aegon is obligated to return it 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\u00a0note\u00a040.3 Assets accepted and note\u00a040.4 Assets pledged for an analysis of collateral accepted and pledged in relation to\u00a0securities lending and repurchase agreements.
\nAegon receives collateral for 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.
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 2025 | \n \n \n 2024 | \n
| \n \n Carrying amount of transferred financial assets | \n \n \n 1,718 | \n \n \n 1,668 | \n
| \n \n Fair value of cash collateral received | \n \n \n 1,677 | \n \n \n 1,898 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 92 | \n \n \n 41 | \n
| \n \n Net exposure | \n \n \n \n \n (51) \n | \n \n \n \n \n (271) \n | \n
| \n \n Reverse repurchase agreements | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Cash paid for reverse repurchase agreements | \n \n \n 289 | \n \n \n 324 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 311 | \n \n \n 343 | \n
| \n \n Net exposure | \n \n \n \n \n (22) \n | \n \n \n \n \n (20) \n | \n
The above items are conducted under terms that are usual and customary for standard securities lending activities, as well as requirements set by exchanges where the bank acts as an intermediary.
For 2024 and 2025, 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.
In addition, Aegon can receive collateral on derivative transactions. The credit support agreement will typically specify the threshold at which collateral must 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, to trade derivatives across various exchanges, Aegon posts margin as collateral.
These transactions are conducted under terms that are usual and customary for standard long-term borrowing, derivative, and\u00a0securities borrowing activities, as well as requirements set 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\u00a0financial 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 amounts of collateral pledged and the corresponding contingent liabilities.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Assets pledged for general account and contingent liabilities | \n \n \n Aegon risk | \n \n \n Aegon risk | \n
| \n \n Contingent liabilities | \n \n \n 1,180 | \n \n \n 2,143 | \n
| \n \n Collateral pledged | \n \n \n 3,762 | \n \n \n 4,282 | \n
| \n \n Net exposure | \n \n \n \n \n (2,581) \n | \n \n \n \n \n (2,139) \n | \n
For 2025 and 2024, there is no Non-cash collateral that can be sold or repledged by the counterparty; no Assets pledged for repurchase agreements; no\u00a0Cash collateral\u00a0that can be sold or repledged by the counterparty.
To trade derivatives on the various exchanges, Aegon posts margin as collateral. The amount of collateral pledged for derivative transactions was EUR 2.0 billion (2024: EUR 2.8 billion).
\nThe information in this note 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 below presents the details relating to the effect (or potential effect) of enforceable master netting arrangements and similar netting arrangements, including rights to set-off, associated with the entity's recognized financial assets and financial liabilities.
| \n | \n\n \n Financial assets | \n \n \n Financial liabilities | \n ||
| \n \n Derivatives | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Gross amounts | \n \n \n 851 | \n \n \n 723 | \n \n \n 1,359 | \n \n \n 2,302 | \n
| \n \n Gross amounts set off in the statement of financial position | \n \n \n 10 | \n \n \n 5 | \n \n \n - | \n \n \n - | \n
| \n \n Net amounts presented in the statement of financial position | \n \n \n 841 | \n \n \n 718 | \n \n \n 1,359 | \n \n \n 2,302 | \n
| \n \n Financial instruments 1 | \n \n \n 369 | \n \n \n 628 | \n \n \n 710 | \n \n \n 1,537 | \n
| \n \n Cash collateral received (excluding surplus collateral) 1 | \n \n \n 66 | \n \n \n 81 | \n \n \n 602 | \n \n \n 710 | \n
| \n \n Net amount | \n \n \n 406 | \n \n \n 8 | \n \n \n 47 | \n \n \n 55 | \n
Financial assets and liabilities are offset in the statement of financial position when the Group has a legally enforceable right to offset and intends to settle the asset and the liability on a net basis, or to realize the asset and settle the liability simultaneously. As shown in the second row, there are EUR 10 million of Derivatives offset in 2025 (2024: EUR 5 million).
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 ISDA master netting agreements for each of Aegon\u2019s legal entities thereby facilitating Aegon\u2019s right to offset credit risk exposure. The credit support agreement will typically specify the threshold at which collateral must 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22614m14305p": { "value": "\nA significant portion of instruments have been designated as FVPL. On December 31, 2025, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 2,048 million (December 2024: EUR\u00a02,337 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following table presents changes in\u00a0fair value attributable to changes in credit risk, recognized for these investments:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n | \n\n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value during the year | \n \n \n 1 | \n \n \n 7 | \n \n \n 8 | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value | \n \n \n - | \n \n \n 45 | \n \n \n 45 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \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 method reasonably approximates credit risk impact, as fixed income valuations are primarily influenced by interest rates and credit spreads. Thus,\u00a0isolating non-credit factors allows for an estimate of credit-related fair value changes.
\n| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2025 | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 1,010 | \n \n \n 12 | \n \n \n 542 | \n \n \n 1,565 | \n
| \n \n Debt securities and money market investments | \n \n \n 95 | \n \n \n 1,358 | \n \n \n 54 | \n \n \n 1,507 | \n
| \n \n Unconsolidated investment funds | \n \n \n 12,074 | \n \n \n - | \n \n \n 1,775 | \n \n \n 13,849 | \n
| \n \n Loans | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n \n Other | \n \n \n - | \n \n \n 86 | \n \n \n - | \n \n \n 86 | \n
| \n | \n\n \n 13,179 | \n \n \n 1,459 | \n \n \n 2,371 | \n \n \n 17,010 | \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 (1) \n | \n \n \n 41 | \n \n \n \n \n (7) \n | \n \n \n 33 | \n
| \n \n Change in fair value of hedges on guarantees in products with DPF | \n \n \n 213 | \n \n \n - | \n \n \n - | \n \n \n 213 | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n | \n\n \n 212 | \n \n \n 39 | \n \n \n \n \n (7) \n | \n \n \n 244 | \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 (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \n
| \n | \n\n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 5 | \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 FVOCI | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \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 / (losses) on investments in real estate | \n \n \n 4 | \n \n \n - | \n \n \n 3 | \n \n \n 7 | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 9 | \n
| \n | \n\n \n 4 | \n \n \n 9 | \n \n \n 3 | \n \n \n 15 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 13,395 | \n \n \n 1,512 | \n \n \n 2,367 | \n \n \n 17,275 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 13,183 | \n \n \n \n \n (305) \n | \n \n \n 2,374 | \n \n \n 15,252 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n 212 | \n \n \n 174 | \n \n \n \n \n (7) \n | \n \n \n 380 | \n
| \n \n Other | \n \n \n - | \n \n \n 1,643 | \n \n \n - | \n \n \n 1,643 | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \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 DPF | \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 Investments measured at FVOCI | \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 / (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 For the year ended December 31, 2024 | \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 Other | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \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 DPF | \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 / (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 For the year ended December 31, 2023 | \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 Other | \n \n \n - | \n \n \n 1,888 | \n \n \n - | \n \n \n 1,888 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \n \n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 421 | \n \n \n 368 | \n \n \n 195 | \n
| \n \n Debt securities and money market investments | \n \n \n 47 | \n \n \n \n \n (55) \n | \n \n \n 46 | \n
| \n \n Unconsolidated investment funds | \n \n \n 9,578 | \n \n \n 7,367 | \n \n \n 6,805 | \n
| \n \n Other | \n \n \n 1 | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 10,047 | \n \n \n 7,680 | \n \n \n 7,047 | \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 43 | \n \n \n \n \n (38) \n | \n \n \n \n \n (8) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n 3 | \n \n \n 5 | \n
| \n \n Change in fair value of hedges on guarantees in investment contracts without DPF | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n 2 | \n \n \n 3 | \n
| \n | \n\n \n 43 | \n \n \n \n \n (35) \n | \n \n \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 (FVOCI) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n
| \n | \n\n \n \n \n (28) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n 1 | \n \n \n - | \n \n \n - | \n
| \n \n Net fair value change on investments in real estate | \n \n \n 2 | \n \n \n 1 | \n \n \n \n \n (6) \n | \n
| \n \n \n \n Net foreign currency gains and (losses) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n 2 | \n
| \n | \n\n \n 3 | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n For the year ended December 31 | \n \n \n 10,065 | \n \n \n 7,634 | \n \n \n 6,929 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 10,064 | \n \n \n 7,666 | \n \n \n 7,043 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (17) \n | \n \n \n 14 | \n \n \n 3 | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n 18 | \n \n \n \n \n (47) \n | \n \n \n \n \n (117) \n | \n
Gains 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 2025 | \n \n \n 2024 | \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 195 | \n \n \n 25,783 | \n \n \n \n \n (1,643) \n | \n \n \n 20,912 | \n
Changes in the fair value of investment contracts without discretionary participation 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:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24481m14306p": { "value": "\nA significant portion of instruments have been designated as FVPL. On December 31, 2025, the maximum exposure to\u00a0credit\u00a0risk of these financial assets was their carrying amount of EUR 2,048 million (December 2024: EUR\u00a02,337 million). The\u00a0credit\u00a0risk of these financial assets has not been hedged by the use of derivatives. The following table presents changes in\u00a0fair value attributable to changes in credit risk, recognized for these investments:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n | \n\n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n \n \n Loans | \n \n \n Debt securities | \n \n \n Total | \n
| \n \n Change in fair value during the year | \n \n \n 1 | \n \n \n 7 | \n \n \n 8 | \n \n \n 3 | \n \n \n 16 | \n \n \n 19 | \n
| \n \n Cumulative change in fair value | \n \n \n - | \n \n \n 45 | \n \n \n 45 | \n \n \n - | \n \n \n 59 | \n \n \n 59 | \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 method reasonably approximates credit risk impact, as fixed income valuations are primarily influenced by interest rates and credit spreads. Thus,\u00a0isolating non-credit factors allows for an estimate of credit-related fair value changes.
\n| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \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 Non-derivative assets applying the fair value option | \n \n \n 234 | \n \n \n \n \n (10) \n | \n \n \n 133 | \n \n \n 357 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 258 | \n \n \n - | \n \n \n 258 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 234 | \n \n \n 248 | \n \n \n 133 | \n \n \n 615 | \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 For the year ended December 31, 2024 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \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 For the year ended December 31, 2023 | \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 2025 | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 1,010 | \n \n \n 12 | \n \n \n 542 | \n \n \n 1,565 | \n
| \n \n Debt securities and money market investments | \n \n \n 95 | \n \n \n 1,358 | \n \n \n 54 | \n \n \n 1,507 | \n
| \n \n Unconsolidated investment funds | \n \n \n 12,074 | \n \n \n - | \n \n \n 1,775 | \n \n \n 13,849 | \n
| \n \n Loans | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n \n Other | \n \n \n - | \n \n \n 86 | \n \n \n - | \n \n \n 86 | \n
| \n | \n\n \n 13,179 | \n \n \n 1,459 | \n \n \n 2,371 | \n \n \n 17,010 | \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 (1) \n | \n \n \n 41 | \n \n \n \n \n (7) \n | \n \n \n 33 | \n
| \n \n Change in fair value of hedges on guarantees in products with DPF | \n \n \n 213 | \n \n \n - | \n \n \n - | \n \n \n 213 | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n | \n\n \n 212 | \n \n \n 39 | \n \n \n \n \n (7) \n | \n \n \n 244 | \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 (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \n
| \n | \n\n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 5 | \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 FVOCI | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \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 / (losses) on investments in real estate | \n \n \n 4 | \n \n \n - | \n \n \n 3 | \n \n \n 7 | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 9 | \n
| \n | \n\n \n 4 | \n \n \n 9 | \n \n \n 3 | \n \n \n 15 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 13,395 | \n \n \n 1,512 | \n \n \n 2,367 | \n \n \n 17,275 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 13,183 | \n \n \n \n \n (305) \n | \n \n \n 2,374 | \n \n \n 15,252 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n 212 | \n \n \n 174 | \n \n \n \n \n (7) \n | \n \n \n 380 | \n
| \n \n Other | \n \n \n - | \n \n \n 1,643 | \n \n \n - | \n \n \n 1,643 | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \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 DPF | \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 Investments measured at FVOCI | \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 / (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 For the year ended December 31, 2024 | \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 Other | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \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 DPF | \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 / (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 For the year ended December 31, 2023 | \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 Other | \n \n \n - | \n \n \n 1,888 | \n \n \n - | \n \n \n 1,888 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 74 | \n \n \n 65 | \n \n \n 89 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n 15 | \n \n \n 13 | \n \n \n - | \n
| \n \n Non-derivative assets - PH designated | \n \n \n 129 | \n \n \n 108 | \n \n \n - | \n
| \n \n For the year ended December 31 | \n \n \n 217 | \n \n \n 186 | \n \n \n 89 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \n \n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 421 | \n \n \n 368 | \n \n \n 195 | \n
| \n \n Debt securities and money market investments | \n \n \n 47 | \n \n \n \n \n (55) \n | \n \n \n 46 | \n
| \n \n Unconsolidated investment funds | \n \n \n 9,578 | \n \n \n 7,367 | \n \n \n 6,805 | \n
| \n \n Other | \n \n \n 1 | \n \n \n - | \n \n \n - | \n
| \n | \n\n \n 10,047 | \n \n \n 7,680 | \n \n \n 7,047 | \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 43 | \n \n \n \n \n (38) \n | \n \n \n \n \n (8) \n | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n 3 | \n \n \n 5 | \n
| \n \n Change in fair value of hedges on guarantees in investment contracts without DPF | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n 2 | \n \n \n 3 | \n
| \n | \n\n \n 43 | \n \n \n \n \n (35) \n | \n \n \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 (FVOCI) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n
| \n | \n\n \n \n \n (28) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (113) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n | \n\n | \n\n | \n
| \n \n Gains and (losses) on investments in real estate | \n \n \n 1 | \n \n \n - | \n \n \n - | \n
| \n \n Net fair value change on investments in real estate | \n \n \n 2 | \n \n \n 1 | \n \n \n \n \n (6) \n | \n
| \n \n \n \n Net foreign currency gains and (losses) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n 2 | \n
| \n | \n\n \n 3 | \n \n \n - | \n \n \n \n \n (4) \n | \n
| \n \n For the year ended December 31 | \n \n \n 10,065 | \n \n \n 7,634 | \n \n \n 6,929 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 10,064 | \n \n \n 7,666 | \n \n \n 7,043 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n \n \n (17) \n | \n \n \n 14 | \n \n \n 3 | \n
| \n \n \n \n Other (i.e. FVOCI) \n | \n \n \n 18 | \n \n \n \n \n (47) \n | \n \n \n \n \n (117) \n | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n \n Non-Insurance related | \n \n \n Total | \n |
| \n \n 2025 | \n \n \n Direct part. | \n \n \n Without direct part. | \n \n \n Direct part. | \n \n | \n\n | \n
| \n \n FVOCI \u2013 with recycling | \n \n \n - | \n \n \n 41,100 | \n \n \n - | \n \n \n 8,647 | \n \n \n 49,747 | \n
| \n \n FVOCI \u2013 no recycling | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 1 | \n \n \n 10 | \n
| \n \n Amortized cost | \n \n \n - | \n \n \n 7,443 | \n \n \n - | \n \n \n 2,276 | \n \n \n 9,719 | \n
| \n \n FVPL \u2013 designated | \n \n \n 109,580 | \n \n \n 1,637 | \n \n \n 21,441 | \n \n \n 85,222 | \n \n \n 217,880 | \n
| \n \n FVPL \u2013 mandatory | \n \n \n - | \n \n \n 6,207 | \n \n \n - | \n \n \n 1,098 | \n \n \n 7,306 | \n
| \n \n \n \n Total financial assets (excl. derivatives) \n | \n \n \n 109,580 | \n \n \n 56,397 | \n \n \n 21,441 | \n \n \n 97,244 | \n \n \n 284,662 | \n
| \n \n Investments in real estate | \n \n \n 217 | \n \n \n 42 | \n \n \n 132 | \n \n \n 87 | \n \n \n 479 | \n
| \n \n Total investments | \n \n \n 109,798 | \n \n \n 56,439 | \n \n \n 21,573 | \n \n \n 97,331 | \n \n \n 285,141 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 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 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 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 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 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 \n \n Total financial assets (excl. derivatives) \n | \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 Investments - Aegon risk | \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 Shares | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 263 | \n \n \n 273 | \n \n \n 273 | \n
| \n \n Debt securities | \n \n \n 47,411 | \n \n \n - | \n \n \n 36 | \n \n \n 1,123 | \n \n \n 1,315 | \n \n \n 49,884 | \n \n \n 49,884 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,308 | \n \n \n - | \n \n \n - | \n \n \n 146 | \n \n \n 1,722 | \n \n \n 4,176 | \n \n \n 4,176 | \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 9,672 | \n \n \n 82 | \n \n \n - | \n \n \n 9,754 | \n \n \n 8,985 | \n
| \n \n Other | \n \n \n 28 | \n \n \n - | \n \n \n - | \n \n \n 716 | \n \n \n 4,005 | \n \n \n 4,749 | \n \n \n 4,749 | \n
| \n \n Total | \n \n \n 49,747 | \n \n \n 10 | \n \n \n 9,719 | \n \n \n 2,066 | \n \n \n 7,306 | \n \n \n 68,848 | \n \n \n 68,078 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 - | \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
In both 2025 and 2024, no significant transactions took place with respect to shares recognized at FVOCI. No dividends were received during 2025 (2024: 0).
| \n \n Investments - Policyholder risk | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Shares | \n \n \n 15,321 | \n \n \n 15,198 | \n
| \n \n Debt securities | \n \n \n 6,318 | \n \n \n 6,259 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,788 | \n \n \n 1,541 | \n
| \n \n Unconsolidated investment funds | \n \n \n 190,671 | \n \n \n 192,775 | \n
| \n \n Deposits with financial institutions | \n \n \n 1,716 | \n \n \n 2,052 | \n
| \n \n Total | \n \n \n 215,814 | \n \n \n 217,824 | \n
Of the debt securities, money market, and other short-term investments and loans EUR 5,774 million is current (December 31, 2024: EUR 6,106 million).
Where necessary, Aegon applied the fair value option on investments where policyholders bear the risk for investment performance. See note 38 Fair Value\u00a0for a summary of all financial assets and financial liabilities measured at fair value through profit\u00a0or\u00a0loss. See note 40 Transfers of financial assets for a discussion of collateral received and paid.
In 2025, the Group has not made changes to its business model or reclassified financial assets.
\n| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n \n Non-Insurance related | \n \n \n 2025 | \n \n \n Insurance contracts | \n \n \n Investment contracts | \n \n \n Non-Insurance related | \n \n \n 2024 | \n ||
| \n \n \n \n Derivatives (FVPL) \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 Assets designated as: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other derivatives | \n \n \n 20 | \n \n \n 348 | \n \n \n 14 | \n \n \n 8 | \n \n \n 390 | \n \n \n 66 | \n \n \n 477 | \n \n \n 53 | \n \n \n 10 | \n \n \n 606 | \n
| \n \n Fair value hedges | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Cash flow hedges | \n \n \n - | \n \n \n 89 | \n \n \n - | \n \n \n - | \n \n \n 89 | \n \n \n - | \n \n \n 136 | \n \n \n - | \n \n \n - | \n \n \n 136 | \n
| \n \n Net foreign investment hedges | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 26 | \n \n \n 26 | \n
| \n \n Total derivative assets | \n \n \n 20 | \n \n \n 441 | \n \n \n 14 | \n \n \n 10 | \n \n \n 485 | \n \n \n 66 | \n \n \n 616 | \n \n \n 53 | \n \n \n 36 | \n \n \n 771 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Represented 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 - Aegon risk | \n \n \n - | \n \n \n 441 | \n \n \n - | \n \n \n 4 | \n \n \n 445 | \n \n \n - | \n \n \n 616 | \n \n \n - | \n \n \n 26 | \n \n \n 643 | \n
| \n \n Derivatives - Policyholder risk | \n \n \n 20 | \n \n \n - | \n \n \n 14 | \n \n \n 6 | \n \n \n 40 | \n \n \n 66 | \n \n \n - | \n \n \n 53 | \n \n \n 10 | \n \n \n 129 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities designated as: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other derivatives | \n \n \n 91 | \n \n \n 412 | \n \n \n 86 | \n \n \n 8 | \n \n \n 597 | \n \n \n 157 | \n \n \n 983 | \n \n \n 135 | \n \n \n 56 | \n \n \n 1,331 | \n
| \n \n 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 Cash flow hedges | \n \n \n - | \n \n \n 869 | \n \n \n - | \n \n \n - | \n \n \n 869 | \n \n \n - | \n \n \n 1,100 | \n \n \n - | \n \n \n - | \n \n \n 1,100 | \n
| \n \n Net foreign investment hedges | \n \n \n - | \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 | \n \n \n 2 | \n
| \n \n Total derivative liabilities | \n \n \n 91 | \n \n \n 1,283 | \n \n \n 86 | \n \n \n 8 | \n \n \n 1,469 | \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 Represented 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 - Aegon risk | \n \n \n - | \n \n \n 1,283 | \n \n \n - | \n \n \n 2 | \n \n \n 1,285 | \n \n \n - | \n \n \n 2,085 | \n \n \n - | \n \n \n 44 | \n \n \n 2,129 | \n
| \n \n Derivatives - Policyholder risk | \n \n \n 91 | \n \n \n - | \n \n \n 86 | \n \n \n 6 | \n \n \n 184 | \n \n \n 157 | \n \n \n - | \n \n \n 135 | \n \n \n 14 | \n \n \n 306 | \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 in the Contractual Service Margin. For more details see note 29.5 Risk\u00a0mitigation.
\n| \n | \n\n \n Derivative asset | \n \n \n Derivative liability | \n ||
| \n \n Derivatives not designated in a hedge - Aegon risk | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Derivatives held as an economic hedge | \n \n \n 350 | \n \n \n 477 | \n \n \n 339 | \n \n \n 954 | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n - | \n \n \n 75 | \n \n \n 71 | \n
| \n \n Total | \n \n \n 350 | \n \n \n 477 | \n \n \n 414 | \n \n \n 1,025 | \n
Aegon uses derivative instruments as part of its asset-liability risk management. These derivatives are classified as economic hedges when they do not qualify for hedge accounting or when Aegon opts not to apply it. Economic hedges address risks related to existing assets, liabilities, or future reinvestments. All hedges follow internal risk guidelines and are closely monitored for compliance. Derivatives embedded in financial liabilities (various institutional products) that are not closely related to the host contracts have been bifurcated and recorded at fair value.
\nAegon has entered into free-standing credit derivative transactions. The positions outstanding at the end of the year were:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||
| \n | \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 4 | \n \n \n - | \n
| \n \n AA | \n \n \n 26 | \n \n \n - | \n \n \n 111 | \n \n \n 1 | \n
| \n \n A | \n \n \n 699 | \n \n \n 1 | \n \n \n 1,233 | \n \n \n 16 | \n
| \n \n BBB | \n \n \n 934 | \n \n \n 25 | \n \n \n 2,310 | \n \n \n 50 | \n
| \n \n BB | \n \n \n 41 | \n \n \n - | \n \n \n 141 | \n \n \n 1 | \n
| \n \n B or lower | \n \n \n 62 | \n \n \n 1 | \n \n \n 51 | \n \n \n - | \n
| \n \n Total | \n \n \n 1,766 | \n \n \n 27 | \n \n \n 3,851 | \n \n \n 68 | \n
Aegon uses credit default swaps (CDS) to synthetically create bonds via Replication (Synthetic Asset) Transactions (RSAT).\u00a0This regulatory concept allows insurance companies to use a derivative alongside a cash investment to replicate the\u00a0characteristics of an otherwise permissible investment. There are three main types of RSAT transactions used by Aegon: single-asset replications, RSATs involving indices, and RSATs involving asset baskets.
\nAegon 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. No underlying principal amounts are exchanged.
Aegon has also entered into cross-currency interest rate swap agreements that convert certain foreign-currency fixed- and floating-rate assets and liabilities into US-dollar floating-rate assets and liabilities. These agreements include exchanging underlying principal amounts.
| \n \n \n \n Hedge ineffectiveness and reclassification of gains/(losses) \n | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Hedge ineffectiveness on cash flow hedges | \n \n \n 2 | \n \n \n - | \n \n \n 3 | \n
| \n \n Gains/(losses) reclassified from equity into the income statement | \n \n \n 27 | \n \n \n 42 | \n \n \n 20 | \n
| \n \n Expected deferred gain/(loss) to be reclassified from equity into net result during the next 12 months | \n \n \n 84 | \n \n \n 88 | \n \n \n 114 | \n
The periods when the contractual, undiscounted cash flows are expected to occur are as follows:
| \n \n 2025 | \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 | \n
| \n \n Cash inflows | \n \n \n 449 | \n \n \n 308 | \n \n \n 299 | \n \n \n 235 | \n \n \n 241 | \n \n \n 4,348 | \n \n \n 5,881 | \n
| \n \n Cash outflows | \n \n \n 436 | \n \n \n 280 | \n \n \n 237 | \n \n \n 221 | \n \n \n 223 | \n \n \n 7,828 | \n \n \n 9,224 | \n
| \n \n Net cash flows | \n \n \n 13 | \n \n \n 28 | \n \n \n 62 | \n \n \n 14 | \n \n \n 18 | \n \n \n \n \n (3,479) \n | \n \n \n \n \n (3,343) \n | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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
The 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 2025 | \n \n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n Maturity | \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 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\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\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 17 | \n \n \n 11 | \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\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 - | \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\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\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 3,770 | \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 3.08% | \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\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 185 | \n \n \n 1,271 | \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 1.14 | \n \n \n 1.13 | \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 USD/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.88 | \n \n \n 0.88 | \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 - | \n \n \n - | \n \n \n - | \n \n \n 0.74 | \n \n \n 0.76 | \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 - | \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\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\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n 321 | \n \n \n 438 | \n \n \n - | \n \n \n - | \n \n \n - | \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 1.18 | \n \n \n 1.18 | \n \n \n - | \n \n \n - | \n \n \n - | \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 0.81 | \n \n \n 0.88 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.21 | \n \n \n 1.21 | \n \n \n - | \n \n \n - | \n \n \n - | \n
Hedging instruments recorded as \"Derivatives\" in the consolidated statement of financial position:
| \n | \n\n | \n\n | \n\n | \n\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n
| \n \n Carrying amounts | \n \n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n FV change1 | \n \n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n FV change1 | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 28 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 32 | \n \n \n - | \n \n \n 3 | \n \n \n 2 | \n
| \n \n Foreign exchange contracts | \n \n \n 8 | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \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\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 3,770 | \n \n \n 9 | \n \n \n 833 | \n \n \n 134 | \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 1,456 | \n \n \n 81 | \n \n \n 36 | \n \n \n \n \n (59) \n | \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\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n 760 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 27 | \n \n \n 26 | \n \n \n 2 | \n \n \n - | \n
Hedged exposures covered by the above-described hedging instruments in the consolidated statement of financial position:
| \n | \n\n \n Carrying amounts | \n \n \n Accumulated amount 1 | \n \n | \n\n | \n||
| \n \n Fair value hedges | \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 FV change2 | \n
| \n \n 2025 | \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 57 | \n \n \n - | \n \n \n \n \n (17) \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 DPF | \n \n \n - | \n
| \n \n Synthetic Asset Fair value hedges | \n \n \n 241 | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n Investments | \n \n \n \n \n (13) \n | \n
| \n \n 2024 | \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 DPF | \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 2025 | \n \n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n FV change1 | \n \n \n Continuing2 | \n \n \n Discontinued2 | \n \n \n FV change1 | \n \n \n Continuing2 | \n \n \n Discontinued2 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Synthetic Asset Cash flow hedges | \n \n \n 242 | \n \n \n 121 | \n \n \n - | \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 18 | \n \n \n \n \n (408) \n | \n \n \n \n \n (7) \n | \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 5 | \n \n \n \n \n (29) \n | \n \n \n 895 | \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 23 | \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 - | \n \n \n - | \n \n \n 3 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments in foreign operations | \n \n \n - | \n \n \n \n \n (331) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (383) \n | \n \n \n - | \n
The following table shows the reconciliation 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 2025 | \n \n \n 2024 | \n ||
| \n \n CDSs | \n \n \n Nominal amount | \n \n \n Fair value | \n \n \n Nominal amount | \n \n \n Fair value | \n
| \n \n On January 1 | \n \n \n 3,851 | \n \n \n 68 | \n \n \n 4,043 | \n \n \n 71 | \n
| \n \n Increase/(Decrease) during the year | \n \n \n \n \n (2,086) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (192) \n | \n \n \n \n \n (2) \n | \n
| \n \n On December 31 | \n \n \n 1,766 | \n \n \n 27 | \n \n \n 3,851 | \n \n \n 68 | \n
The 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 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments - Aegon risk | \n \n \n 7,306 | \n \n \n 2,066 | \n \n \n 7,661 | \n \n \n 2,356 | \n
| \n \n Investments - Policyholder risk | \n \n \n - | \n \n \n 216,251 | \n \n \n - | \n \n \n 218,281 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 390 | \n \n \n - | \n \n \n 606 | \n \n \n - | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 7,695 | \n \n \n 218,317 | \n \n \n 8,267 | \n \n \n 220,637 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder risk | \n \n \n - | \n \n \n 85,161 | \n \n \n - | \n \n \n 79,078 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 597 | \n \n \n - | \n \n \n 1,331 | \n \n \n - | \n
| \n \n Total financial liabilities measured at FVPL | \n \n \n 597 | \n \n \n 85,161 | \n \n \n 1,331 | \n \n \n 79,078 | \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).
\nIn 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 for asset and liability management. In accordance with the Group\u2019s accounting policies, these assets have been designated as fair value through profit or loss.
Investments where the policyholder bears the risk include assets 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.
\nWith the exception of the financial liabilities with discretionary participation features that are not subject to the classification and measurement requirements for financial instruments, all investment contracts without discretionary participation features where the policyholder bears the risk, are carried at fair value or at the fair value of the linked assets, and are included in\u00a0the 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 2025 | \n \n \n 2024 | \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 195 | \n \n \n 25,783 | \n \n \n \n \n (1,643) \n | \n \n \n 20,912 | \n
Changes in the fair value of investment contracts without discretionary participation 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22247m14190p": { "value": "\nAegon\u2019s investments in unconsolidated structured entities \u2014 such as RMBSs, CMBSs, ABSs, and investment funds \u2014 are reported under \u201cInvestments\u201d on the statement of financial position. These interests are basic interests. Aegon holds no related loans, derivatives, guarantees, or other interests relating to these investments.
For RMBSs, CMBSs, and ABSs, Aegon\u2019s maximum exposure to loss equals the carrying amount, as shown in the credit risk concentration table for debt securities and money market investments. To manage credit risk, Aegon primarily invests in senior notes of these instruments. The portfolios are broadly diversified by issuer, resulting in only non-controlling interests in\u00a0individual unconsolidated structured entities. Additionally, Aegon does not originate these investments.
As the collateral manager of collateralized loan obligations (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 in the form of participation in the subordinated tranches of the structure, which concentrate credit risk on the underlying assets of the CLO. Aegon\u2019s maximum exposure to credit risk is the carrying amount of these investments, which was EUR\u00a0190,671 million on December 31, 2025 (2024: EUR 192,775 million).
Except for commitments, such as future purchases in investment funds, as disclosed in note 39 Commitments and contingencies,\u00a0Aegon did not provide, nor is it required to provide financial or other support to unconsolidated structured entities. Aegon also has no intention to offer such support to entities in which it currently holds or previously held an interest.
For RMBSs, CMBSs, and ABSs\u00a0in which Aegon has an interest at the 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\u00a0financial position of Aegon's interests in RMBSs, CMBSs, and ABSs.
| \n | \n\n | \n\n \n 2025 | \n \n | \n\n \n 2024 | \n ||||
| \n | \n\n \n Interest income | \n \n \n Gains/(losses) on sale | \n \n \n Total Income | \n \n \n Investments | \n \n \n Interest income | \n \n \n Gains/(losses) on sale | \n \n \n Total Income | \n \n \n Investments | \n
| \n \n RMBSs | \n \n \n 57 | \n \n \n 7 | \n \n \n 64 | \n \n \n 827 | \n \n \n 58 | \n \n \n \n \n (13) \n | \n \n \n 45 | \n \n \n 684 | \n
| \n \n CMBSs | \n \n \n 115 | \n \n \n 87 | \n \n \n 202 | \n \n \n 2,479 | \n \n \n 97 | \n \n \n 98 | \n \n \n 194 | \n \n \n 2,582 | \n
| \n \n ABSs | \n \n \n 33 | \n \n \n - | \n \n \n 33 | \n \n \n 617 | \n \n \n 38 | \n \n \n 12 | \n \n \n 50 | \n \n \n 585 | \n
| \n \n ABSs - Other | \n \n \n 296 | \n \n \n 114 | \n \n \n 410 | \n \n \n 5,991 | \n \n \n 206 | \n \n \n 58 | \n \n \n 264 | \n \n \n 4,952 | \n
| \n \n Total | \n \n \n 501 | \n \n \n 208 | \n \n \n 708 | \n \n \n 9,914 | \n \n \n 399 | \n \n \n 155 | \n \n \n 554 | \n \n \n 8,802 | \n
| \n | \n\n \n Joint ventures | \n \n \n Associates | \n ||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 1,503 | \n \n \n 1,430 | \n \n \n 3,122 | \n \n \n 2,906 | \n
| \n \n Additions | \n \n \n 1 | \n \n \n 1 | \n \n \n 81 | \n \n \n - | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (603) \n | \n \n \n \n \n (34) \n | \n
| \n \n Share in net income | \n \n \n 303 | \n \n \n 238 | \n \n \n 200 | \n \n \n 345 | \n
| \n \n \n \n Share in changes in equity (note 25.6) \n | \n \n \n 3 | \n \n \n \n \n (27) \n | \n \n \n 56 | \n \n \n 85 | \n
| \n \n Dividend | \n \n \n \n \n (185) \n | \n \n \n \n \n (141) \n | \n \n \n \n \n (215) \n | \n \n \n \n \n (199) \n | \n
| \n \n Net exchange difference | \n \n \n \n \n (59) \n | \n \n \n 1 | \n \n \n \n \n (3) \n | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19 | \n
| \n \n On December 31 | \n \n \n 1,566 | \n \n \n 1,503 | \n \n \n 2,638 | \n \n \n 3,122 | \n
The disposals of associates mainly reflects the reduction of investments in ASR Nederlands N.V. (a.s.r.) from 29.96% to 24.12%, as well as Aegon's participation in a.s.r. share buyback programs.
The joint ventures and associates are accounted for using the equity method and are 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 4.5% on December 31, 2025 (2024: 4.2%) excluding an illiquidity premium (ILP) of 30 bps (2024: 30 bps) for the first 20 years and 20 bps thereafter (2024: 20 bps).
\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 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \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 30 | \n \n \n 62 | \n \n \n 436 | \n \n \n 66 | \n \n \n 72 | \n
| \n \n Other current assets | \n \n \n 57 | \n \n \n 63 | \n \n \n 764 | \n \n \n 744 | \n \n \n 2,315 | \n \n \n 1,055 | \n
| \n \n Total current assets | \n \n \n 87 | \n \n \n 93 | \n \n \n 827 | \n \n \n 1,180 | \n \n \n 2,381 | \n \n \n 1,127 | \n
| \n \n Non-current assets | \n \n \n 1,004 | \n \n \n 1,023 | \n \n \n 571 | \n \n \n 194 | \n \n \n 5,718 | \n \n \n 7,429 | \n
| \n \n Total assets | \n \n \n 1,091 | \n \n \n 1,116 | \n \n \n 1,398 | \n \n \n 1,374 | \n \n \n 8,099 | \n \n \n 8,556 | \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 3 | \n \n \n 4 | \n
| \n \n Other current liabilities | \n \n \n 231 | \n \n \n 53 | \n \n \n 374 | \n \n \n 350 | \n \n \n 596 | \n \n \n 452 | \n
| \n \n Total current liabilities | \n \n \n 231 | \n \n \n 53 | \n \n \n 374 | \n \n \n 350 | \n \n \n 599 | \n \n \n 456 | \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 61 | \n \n \n 66 | \n
| \n \n Other non-current liabilities | \n \n \n 236 | \n \n \n 406 | \n \n \n - | \n \n \n 38 | \n \n \n 6,160 | \n \n \n 6,874 | \n
| \n \n Total non-current financial liabilities | \n \n \n 236 | \n \n \n 406 | \n \n \n - | \n \n \n 38 | \n \n \n 6,221 | \n \n \n 6,941 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total liabilities | \n \n \n 467 | \n \n \n 459 | \n \n \n 374 | \n \n \n 388 | \n \n \n 6,820 | \n \n \n 7,397 | \n
| \n \n Net assets | \n \n \n 624 | \n \n \n 657 | \n \n \n 1,024 | \n \n \n 985 | \n \n \n 1,279 | \n \n \n 1,159 | \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 381 | \n \n \n 340 | \n \n \n 488 | \n \n \n 415 | \n \n \n 2,807 | \n \n \n 2,662 | \n
| \n \n Depreciation and amortization | \n \n \n \n \n (36) \n | \n \n \n \n \n (34) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (29) \n | \n \n \n \n \n (28) \n | \n
| \n \n Interest income | \n \n \n 6 | \n \n \n 6 | \n \n \n 27 | \n \n \n 18 | \n \n \n 166 | \n \n \n 128 | \n
| \n \n Interest expense | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (4) \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 Profit or loss | \n \n \n 101 | \n \n \n 95 | \n \n \n 257 | \n \n \n 280 | \n \n \n 435 | \n \n \n 272 | \n
| \n \n Income tax (expense) or income | \n \n \n \n \n (25) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (71) \n | \n \n \n \n \n (78) \n | \n \n \n \n \n (100) \n | \n \n \n \n \n (80) \n | \n
| \n \n \n \n Post-tax profit or (loss) \n | \n \n \n 76 | \n \n \n 74 | \n \n \n 186 | \n \n \n 202 | \n \n \n 335 | \n \n \n 192 | \n
| \n \n Other comprehensive income | \n \n \n 3 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n \n \n (134) \n | \n
| \n \n Total comprehensive income | \n \n \n 79 | \n \n \n 78 | \n \n \n 186 | \n \n \n 202 | \n \n \n 340 | \n \n \n 58 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 57 | \n \n \n 53 | \n \n \n 34 | \n \n \n 29 | \n \n \n 95 | \n \n \n 59 | \n
An overview of the summarized financial information of the carrying amount of the joint ventures (JVs), and results of the JVs based on\u00a0the Group\u2019s relative holding are as follows:
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Net assets of JVs as presented above | \n \n \n 624 | \n \n \n 657 | \n \n \n 1,024 | \n \n \n 985 | \n \n \n 1,279 | \n \n \n 1,159 | \n
| \n \n Net assets of JVs excluding goodwill | \n \n \n 545 | \n \n \n 577 | \n \n \n 1,024 | \n \n \n 985 | \n \n \n 1,160 | \n \n \n 1,040 | \n
| \n \n Group share of net assets of JVs, excluding goodwill | \n \n \n 278 | \n \n \n 294 | \n \n \n 502 | \n \n \n 483 | \n \n \n 588 | \n \n \n 526 | \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 119 | \n \n \n 120 | \n
| \n \n Carrying amount | \n \n \n 357 | \n \n \n 374 | \n \n \n 502 | \n \n \n 483 | \n \n \n 707 | \n \n \n 646 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Group share of post-tax profit or loss | \n \n \n 39 | \n \n \n 38 | \n \n \n 91 | \n \n \n 99 | \n \n \n 174 | \n \n \n 101 | \n
| \n \n Group share of other comprehensive income | \n \n \n 2 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (67) \n | \n
| \n \n Group share of Total comprehensive income | \n \n \n 40 | \n \n \n 40 | \n \n \n 91 | \n \n \n 99 | \n \n \n 176 | \n \n \n 35 | \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.
\nThe following tables reflect the condensed statement of financial position and income statement of Aegon's material associate ASR Nederland N.V. (a.s.r.) at 100%. a.s.r. is a listed company in the Netherlands in which Aegon holds a stake of\u00a024.12% as at December\u00a031, 2025.\u00a0\u00a0
| \n | \n\n \n a.s.r. | \n |
| \n \n Summarized statement of financial position | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Investments | \n \n \n 79,124 | \n \n \n 80,484 | \n
| \n \n Derivatives | \n \n \n 15,905 | \n \n \n 11,767 | \n
| \n \n Other assets | \n \n \n 47,326 | \n \n \n 46,457 | \n
| \n \n Total assets | \n \n \n 142,355 | \n \n \n 138,709 | \n
| \n | \n\n | \n\n | \n
| \n \n Insurance liabilities | \n \n \n 101,431 | \n \n \n 102,723 | \n
| \n \n Borrowings and subordinated liabilities | \n \n \n 4,802 | \n \n \n 5,140 | \n
| \n \n Derivatives | \n \n \n 15,453 | \n \n \n 8,666 | \n
| \n \n Other liabilities | \n \n \n 10,405 | \n \n \n 12,293 | \n
| \n \n Total liabilities | \n \n \n 132,091 | \n \n \n 128,822 | \n
| \n \n Non-controlling interest | \n \n \n 13 | \n \n \n 47 | \n
| \n \n Other equity instruments | \n \n \n 1,477 | \n \n \n 977 | \n
| \n \n Total other equity components | \n \n \n 1,490 | \n \n \n 1,024 | \n
| \n \n Net assets | \n \n \n 8,774 | \n \n \n 8,863 | \n
| \n | \n\n \n a.s.r. | \n |
| \n \n Summarized statement of comprehensive income | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Insurance revenues | \n \n \n 10,342 | \n \n \n 9,601 | \n
| \n \n Insurance service result | \n \n \n 765 | \n \n \n 772 | \n
| \n | \n\n | \n\n | \n
| \n \n Profit or loss from continuing operations | \n \n \n 808 | \n \n \n 1,418 | \n
| \n \n Income tax expense or income | \n \n \n \n \n (159) \n | \n \n \n \n \n (375) \n | \n
| \n \n Post-tax profit or loss from continuing operations | \n \n \n 649 | \n \n \n 1,043 | \n
| \n | \n\n | \n\n | \n
| \n \n Post-tax profit or loss from discontinued operations | \n \n \n - | \n \n \n 35 | \n
| \n \n Other comprehensive income - that will not be recycled to profit or loss | \n \n \n 228 | \n \n \n 283 | \n
| \n \n Total comprehensive income | \n \n \n 877 | \n \n \n 1,361 | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 200 | \n \n \n 188 | \n
| \n \n Group share | \n \n \n 24.12% | \n \n \n 29.95% | \n
| \n \n Group share of post-tax profit or loss | \n \n \n 178 | \n \n \n 325 | \n
| \n \n Group share of other comprehensive income | \n \n \n 56 | \n \n \n 85 | \n
| \n \n Carrying amount of investment in a.s.r. | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Net assets of a.s.r. as presented above | \n \n \n 8,774 | \n \n \n 8,863 | \n
| \n \n Net assets of a.s.r. excluding goodwill, fair value adjustments and other equity transactions | \n \n \n 8,723 | \n \n \n 8,827 | \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 2,104 | \n \n \n 2,644 | \n
| \n \n Fair value adjustments | \n \n \n 66 | \n \n \n 50 | \n
| \n \n Goodwill on acquisition | \n \n \n 94 | \n \n \n 117 | \n
| \n \n On December 31 | \n \n \n 2,264 | \n \n \n 2,811 | \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 number of shares held on the reporting date.\u00a0The fair value of Aegon's stake in a.s.r. is EUR 2,992 million (2024: EUR 2,864 million).
The following table includes associates that Aegon considered immaterial.
| \n | \n\n \n Other Associates | \n |
| \n \n Summarized statement of financial position | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Current assets | \n \n \n 495 | \n \n \n 501 | \n
| \n \n Non-current assets | \n \n \n 1,090 | \n \n \n 732 | \n
| \n \n Total assets | \n \n \n 1,585 | \n \n \n 1,233 | \n
| \n | \n\n | \n\n | \n
| \n \n Current liabilities | \n \n \n 308 | \n \n \n 343 | \n
| \n \n Non-current liabilities | \n \n \n 10 | \n \n \n 25 | \n
| \n \n Total current liabilities | \n \n \n 319 | \n \n \n 369 | \n
| \n | \n\n | \n\n | \n
| \n \n Net assets | \n \n \n 1,266 | \n \n \n 864 | \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 92 | \n \n \n 86 | \n
| \n \n Other comprehensive income | \n \n \n - | \n \n \n - | \n
| \n \n Total comprehensive income | \n \n \n 92 | \n \n \n 86 | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 15 | \n \n \n 11 | \n
| \n \n Carrying amount | \n \n \n 374 | \n \n \n 311 | \n
There were no significant divestments in 2025.
\nOn 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\u00a0Royal 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.
\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. Aegon's voting power in these subsidiaries equals its shareholdings.
| \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n
| \n \n \n \n Transamerica Casualty Insurance Company, Cedar Rapids, Iowa (United States) \n | \n \n \n Aegon Investment Solutions Ltd., Edinburgh | \n \n \n \n \n Aegon Espa\u00f1a S.A.U. de Seguros y Reaseguros, Madrid (Spain) \n | \n \n \n \n \n Aegon Asset Management Holding B.V., The Hague (The Netherlands) \n | \n
| \n \n \n \n Transamerica Corporation, Wilmington, Delaware (United States) \n | \n \n \n Aegon Investments Ltd., London | \n \n \n \n \n Transamerica Life (Bermuda) Ltd., Hamilton (Bermuda) \n | \n \n \n \n \n Aegon Asset Management UK plc, Edinburgh (United Kingdom) \n | \n
| \n \n \n \n Transamerica Financial Life Insurance Company, Harrison, New York (United States) \n | \n \n \n Cofunds Limited, London | \n \n | \n\n \n \n \n Aegon Investment Management B.V., The Hague (The Netherlands) \n | \n
| \n \n \n \n Transamerica Life Insurance Company, Cedar Rapids, Iowa (United States) \n | \n \n \n Scottish Equitable plc, Edinburgh | \n \n | \n\n \n \n \n Aegon USA Investment Management, LLC, Cedar Rapids (United States) \n | \n
| \n \n \n \n World Financial Group Insurance Agency, LLC, Cedar Rapids, Iowa (United States) \n | \n \n \n Origen Financial Services Limited, Farnborough | \n \n | \n\n \n \n \n Aegon USA Realty Advisors, LLC, Des Moines (United States) \n | \n
| \n \n \n \n World Financial Group Holding Company of Canada Inc., Toronto (Canada) \n | \n \n | \n\n | \n\n | \n
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 defined 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 Seguradora 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 are equal to\u00a0the shareholdings, unless stated otherwise.
\nDawn Holdings LLC, Wilmington, Delaware (United States) (19.99%)
ASR Nederland N.V., Utrecht (24.12%)
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 to the Audit and Risk Committee and the ESG Committee, subject to certain conditions.
For as long as Aegon holds more than 20% of the shares, the affirmative vote of the Non-independent 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 following needs the unanimous vote of all Supervisory Directors in office and the affirmative vote of the Non-independent 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 between 10% and 20% of the\u00a0shares.\u00a0If Aegon holds less than 10%, the relationship agreement from which the abovementioned rights derive is automatically terminated.
\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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23723m13988p": { "value": "\nCredit risk losses are inherent to fixed-income securities. The level of this risk and the compensation for bearing it are related. A\u00a0key\u00a0management measure to avoid excessive credit risk is to diversify and limit exposure to individual issuers.
Aegon measures credit risk in line with the IFRS 9 approach for Expected Credit Loss (ECL). ECL is calculated as the product of\u00a0the projected probability of default (PD), the loss given default (LGD), and the exposure at default (EAD), discounted at an\u00a0appropriate rate. ECL is then determined as the probability-weighted, discounted credit loss across multiple scenarios (for\u00a0example,\u00a0base, positive, adverse).
\nAegon uses the \"three-stage\" model for impairment as outlined in IFRS 9, based on relative changes in credit quality since initial recognition. The table below shows the characteristics of the three stages.
| \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 the staging of financial instruments, Aegon incorporates multiple, forward looking macro- scenarios to drive the\u00a0ECL\u00a0provision. Forward-looking inputs used to measure ECLs must align with those used to assess significant increases in\u00a0credit\u00a0risk.
The Group uses different models to calculate ECL across asset classes. The following sections outline the Group\u2019s key judgments and assumptions for each model.
For bonds and private placements, the Group uses a global correlation model that links credit quality movements across asset classes to macroeconomic trends. This model determines conditional PD and LGD under specific macroeconomic scenarios. Unconditional PD and LGD curves are developed using distinct methods for sovereign debt, corporate bonds, and\u00a0private placements.
For commercial mortgage loans and mortgage-backed securities, parameters are estimated using commercial mortgage metrics. These build on corporate bond PD and LGD estimates, adjusted for factors like debt service coverage and loan-to-value ratios.
Asset-backed securities are modeled separately, with instruments pooled by collateral type, and credit-loss parameters estimated collectively. For collateralized debt (loan) obligations (CDOs and CLOs), different models are applied depending on\u00a0the region of the exposure.
The following tables contain an analysis of Aegon\u2019s credit risk exposure for debt instruments and loans for which an ECL allowance is\u00a0recognized.\u00a0All asset categories not presented here are\u00a0determined to have non-material credit risk or to be of\u00a0a\u00a0short-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 Financial assets | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n AAA | \n \n \n 3,843 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,843 | \n \n \n 3,295 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,295 | \n
| \n \n AA | \n \n \n 7,787 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 7,788 | \n \n \n 9,100 | \n \n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 9,101 | \n
| \n \n A | \n \n \n 18,394 | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 18,403 | \n \n \n 19,443 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19,443 | \n
| \n \n BBB | \n \n \n 18,050 | \n \n \n 84 | \n \n \n - | \n \n \n 1 | \n \n \n 18,135 | \n \n \n 20,724 | \n \n \n 7 | \n \n \n - | \n \n \n 1 | \n \n \n 20,732 | \n
| \n \n BB | \n \n \n 810 | \n \n \n 124 | \n \n \n - | \n \n \n - | \n \n \n 934 | \n \n \n 949 | \n \n \n 157 | \n \n \n - | \n \n \n - | \n \n \n 1,106 | \n
| \n \n B | \n \n \n 150 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 245 | \n \n \n 361 | \n \n \n 95 | \n \n \n - | \n \n \n - | \n \n \n 456 | \n
| \n \n CCC and lower | \n \n \n 48 | \n \n \n 55 | \n \n \n 221 | \n \n \n 74 | \n \n \n 398 | \n \n \n 85 | \n \n \n 79 | \n \n \n 289 | \n \n \n 91 | \n \n \n 544 | \n
| \n \n Net carrying amount | \n \n \n 49,082 | \n \n \n 358 | \n \n \n 232 | \n \n \n 75 | \n \n \n 49,747 | \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 Expected credit loss | \n \n \n \n \n (189) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \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 Loans at | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2025 | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Purchased credit impaired | \n \n \n 2024 | \n
| \n \n Internal grade 1 | \n \n \n 847 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 847 | \n \n \n 977 | \n \n \n 35 | \n \n \n - | \n \n \n - | \n \n \n 1,013 | \n
| \n \n Internal grade 2 | \n \n \n 4,023 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,023 | \n \n \n 4,410 | \n \n \n 11 | \n \n \n - | \n \n \n - | \n \n \n 4,421 | \n
| \n \n Internal grade 3 | \n \n \n 4,304 | \n \n \n 15 | \n \n \n - | \n \n \n - | \n \n \n 4,319 | \n \n \n 4,539 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 4,546 | \n
| \n \n Internal grade 4 | \n \n \n 413 | \n \n \n 7 | \n \n \n 3 | \n \n \n - | \n \n \n 423 | \n \n \n 644 | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n 654 | \n
| \n \n Internal grade 5 | \n \n \n - | \n \n \n 93 | \n \n \n - | \n \n \n - | \n \n \n 93 | \n \n \n 4 | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 81 | \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 9,587 | \n \n \n 115 | \n \n \n 3 | \n \n \n - | \n \n \n 9,705 | \n \n \n 10,573 | \n \n \n 135 | \n \n \n 7 | \n \n \n - | \n \n \n 10,716 | \n
| \n \n Expected credit loss | \n \n \n \n \n (11) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (33) \n | \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 | \n \n \n 9,575 | \n \n \n 94 | \n \n \n 2 | \n \n \n - | \n \n \n 9,672 | \n \n \n 10,535 | \n \n \n 60 | \n \n \n 2 | \n \n \n - | \n \n \n 10,598 | \n
Aegon considers a financial instrument to have experienced an SICR 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 Financial guarantees | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \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 increase in credit risk relative to origination.\u00a0The absolute threshold defines a stage for each rating and is primarily used when the rating at origination is unavailable or when an instrument is already in default. The relative PD thresholds can be converted into rating-based thresholds using Moody\u2019s\u00a0standard rating to PD mappings. The\u00a0difference between the PD at\u00a0origination and the PD corresponding to the threshold determines the number of notches that the rating must drop by. For\u00a0example, for a one-year-old instrument with a one-year remaining maturity this gives the following result:
\n\nAegon groups PD values into ranges, shown in the table below. Each range includes minimum and maximum PDs for financial and corporate assets with maturities from 1 to 10 years. As Aegon US best represents the Group, PD data for the Americas is\u00a0presented.
| \n | \n\n | \n\n \n 2025 | \n \n | \n\n \n 2024 | \n
| \n \n PD range | \n \n \n Minimum | \n \n \n Maximum | \n \n \n Minimum | \n \n \n Maximum | \n
| \n \n AAA | \n \n \n 0.0001 | \n \n \n 0.0018 | \n \n \n 0.0001 | \n \n \n 0.0021 | \n
| \n \n AA | \n \n \n 0.0002 | \n \n \n 0.0031 | \n \n \n 0.0002 | \n \n \n 0.0034 | \n
| \n \n A | \n \n \n 0.0006 | \n \n \n 0.0050 | \n \n \n 0.0006 | \n \n \n 0.0052 | \n
| \n \n BBB | \n \n \n 0.0016 | \n \n \n 0.0079 | \n \n \n 0.0017 | \n \n \n 0.0079 | \n
| \n \n BB | \n \n \n 0.0048 | \n \n \n 0.0133 | \n \n \n 0.0048 | \n \n \n 0.0131 | \n
| \n \n B | \n \n \n 0.0117 | \n \n \n 0.0320 | \n \n \n 0.0120 | \n \n \n 0.0307 | \n
| \n \n CCC or lower | \n \n \n 0.0209 | \n \n \n 1.0000 | \n \n \n 0.0196 | \n \n \n 1.0000 | \n
For debt securities, private loans, structured finance securities and deposits with financial institutions the watchlist approach is applied as an additional qualitative criterion. Instruments on the watchlist are closely monitored. Assets are added to the watchlist if their 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. For debt securities and private loans, this assessment is performed at the counterparty level and on a periodic basis. The Group periodically reviews the criteria used to identify SICR for\u00a0appropriateness. For loan commitments and financial guarantees, Aegon defines default consistently with the related loan or financial instrument, considering the same risk factors.
\nA backstop is applied to exposures deemed to have experienced an SICR when the borrower is more than 30 days past due on contractual payments in structured finance and 60 days in commercial mortgage loans. No\u00a0backstop is applied to the other asset classes.
\nAegon has used the low credit risk exemption for debt instruments. Debt instruments that have a credit rating of \"investment grade\" (rating \"BBB\" or higher) are considered to have low credit risk. External and internal credit ratings are used, respectively, to assess whether an SICR has occurred for these assets.
\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 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 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 Financial guarantee contracts | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n
In addition to the criteria in the table above, Aegon identifies other indicators of unlikelihood of payment, such as a lack of future ability to generate cash flows, concerns about sources of recurring income, increased overall leverage of the borrower, material fraud, or the death of a client.
All the criteria above have been applied to Aegon\u2019s financial instruments and align with the definition of default used for internal credit risk management purposes. This definition is consistently used in modeling PD and EAD throughout Aegon\u2019s expected loss calculations.
An instrument is considered \"cured\" when it no longer meets any default criteria for six consecutive months and the obligor is\u00a0assessed as likely to pay. This six-month period assesses the likelihood that a financial instrument will return to default status after cure, using different cure definitions.
\nAegon uses a\u00a0set\u00a0of\u00a0variables describing the state of the macroeconomy as input to the calculation of the probability of default and prepayment.
Subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the\u00a0Group 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.
The lifetime PD for a financial instrument is calculated by summing the probabilities of all future developments that end up in the ECL. All possible future developments are enumerated, and a probability is estimated for each using statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of SICR and the calculation of ECL both incorporate forward-looking information.
The impact of economic variables on ECL and lifetime PD varies by financial instrument, with expert judgment applied throughout the process. Forecasts for these variables (the \u201cbase economic scenario\u201d) reflect Aegon\u2019s best estimate for\u00a0the\u00a0next five years. Beyond that, a mean reversion approach is used, assuming variables return to long-term averages (for\u00a0example,\u00a0unemployment rates or GDP growth) over three years. A statistical regression analysis has been performed to assess how historical changes in macroeconomic variables have influenced default and prepayment rates.
Starting from the base scenario, three macroeconomic scenarios \u2014 positive, neutral, and negative \u2014 are generated by applying shocks to macroeconomic variables, reflecting their historical correlations. These shocks correspond to the average deviation from the long-term mean observed in the best/worst 10% of historical quarters. ECL is calculated for each scenario, weighted accordingly, and then summed up. This multi-scenario approach ensures the ECL reflects a balanced estimate, not just the most likely scenario. 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 on December 31, 2025 | \n \n | \n\n \n 2026 | \n \n \n 2027 | \n \n \n 2028 | \n \n \n 2029 | \n \n \n Units | \n
| \n \n Interest rates | \n \n \n Base | \n \n \n 4.29 | \n \n \n 4.32 | \n \n \n 4.33 | \n \n \n 4.30 | \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 4.39 | \n \n \n 4.41 | \n \n \n 4.33 | \n \n \n 4.30 | \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 3.05 | \n \n \n 3.76 | \n \n \n 4.02 | \n \n \n 4.16 | \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 4.78 | \n \n \n 4.59 | \n \n \n 4.29 | \n \n \n 4.05 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Upside | \n \n \n 3.83 | \n \n \n 3.94 | \n \n \n 3.66 | \n \n \n 3.47 | \n \n \n \n \n (%, SA) \n | \n
| \n \n Unemployment rate | \n \n \n Downside | \n \n \n 8.34 | \n \n \n 7.60 | \n \n \n 6.16 | \n \n \n 4.94 | \n \n \n \n \n (%, SA) \n | \n
| \n \n House Price Index | \n \n \n Base | \n \n \n 429.08 | \n \n \n 438.87 | \n \n \n 455.20 | \n \n \n 471.22 | \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 450.23 | \n \n \n 472.07 | \n \n \n 494.28 | \n \n \n 513.52 | \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 362.72 | \n \n \n 383.66 | \n \n \n 404.10 | \n \n \n 420.99 | \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 24,484.94 | \n \n \n 24,932.78 | \n \n \n 25,485.10 | \n \n \n 26,129.71 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Upside | \n \n \n 24,887.20 | \n \n \n 25,401.41 | \n \n \n 26,012.56 | \n \n \n 26,724.26 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Domestic GDP | \n \n \n Downside | \n \n \n 23,372.80 | \n \n \n 23,689.06 | \n \n \n 24,425.29 | \n \n \n 25,270.54 | \n \n \n Bil. Ch. 2012 USD, SAAR2 | \n
| \n \n Equity | \n \n \n Base | \n \n \n 6,363.30 | \n \n \n 6,460.73 | \n \n \n 6,953.76 | \n \n \n 7,485.28 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Upside | \n \n \n 6,831.53 | \n \n \n 6,904.30 | \n \n \n 7,343.79 | \n \n \n 7,756.76 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Equity | \n \n \n Downside | \n \n \n 4,423.87 | \n \n \n 4,764.13 | \n \n \n 5,780.16 | \n \n \n 6,786.08 | \n \n \n Standard & Poor's (S&P); Moody's Analytics Forecasted | \n
| \n \n Economic variable assumptions on 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
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, 2025 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
| \n \n On December 31, 2024 | \n \n \n 40 | \n \n \n 30 | \n \n \n 30 | \n
Other forward-looking factors, such as regulatory, legislative, or political changes, have been considered but are not deemed material and did not adjust ECL. This process is reviewed quarterly for continued appropriateness.
\nThe Group writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and no reasonable expectation of recovery remains. Indicators include (i) ceasing enforcement activity; and (ii) where Aegon\u2019s recovery method is foreclosing on collateral, and the\u00a0value of\u00a0the collateral is not expected to fully recover.
Assets may still be subject to enforcement when written off. The contractual amounts written off in 2025 were not material. The Group continues to pursue full legal recovery, even for (partially) written-off assets.
\nThe Group may modify loan terms through commercial renegotiations or for distressed loans to maximize recovery. Such\u00a0restructuring activities include extended payment terms and penalty interest arrangements. Policies are based on\u00a0management\u2019s judgment of indicators suggesting continued payment and are reviewed continuously.
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\u00a0applies only to assets that have performed in accordance with the new terms for three consecutive months or more. The\u00a0gross carrying amount of such assets held on December 31, 2025, was EUR 0 million (2024: 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:
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;
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments derecognized in the period;
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of\u00a0inputs to models;
Impacts on the measurement of ECL due to changes made to models and assumptions;
Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during\u00a0the period.
For asset-backed securities, cash flow trends and collateral levels are also 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 table on debt securities explains the changes in the loss allowance between the beginning and the end of the annual period due to these factors:
| \n | \n\n \n ECL staging | \n \n | \n\n | \n||
| \n \n Debt securities | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n POCI | \n \n \n Total | \n
| \n \n Loss allowance on January 1, 2025 | \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\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 2 to Stage 1 | \n \n \n \n \n (1) \n | \n \n \n 1 | \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 4 | \n \n \n \n \n (4) \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 (1) \n | \n \n \n 1 | \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 (9) \n | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n - | \n
| \n \n Impact of stage transfers on year-end ECL | \n \n \n 9 | \n \n \n \n \n (10) \n | \n \n \n \n \n (51) \n | \n \n \n - | \n \n \n \n \n (52) \n | \n
| \n \n Financial assets derecognized during the period | \n \n \n 30 | \n \n \n 15 | \n \n \n 28 | \n \n \n - | \n \n \n 73 | \n
| \n \n New financial assets originated or purchased | \n \n \n \n \n (29) \n | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (43) \n | \n
| \n \n Change in models | \n \n \n \n \n (26) \n | \n \n \n 3 | \n \n \n \n \n (5) \n | \n \n \n 3 | \n \n \n \n \n (24) \n | \n
| \n \n Net exchange differences | \n \n \n 23 | \n \n \n 5 | \n \n \n 14 | \n \n \n - | \n \n \n 42 | \n
| \n \n Loss allowance on December 31, 2025 | \n \n \n \n \n (188) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n||||
| \n \n Loss allowance on January 1, 2024 | \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 of stage transfers on year-end ECL | \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, 2024 | \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
The ECL allowance for debt securities measured at FVOCI of EUR 347 million (2024: EUR 341 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 decreased by EUR 85 million to EUR 33 million during 2025 (2024: EUR 118 million). The\u00a0decrease in expected credit losses was primarily driven by a mortgage loan in Aegon US and, to a lesser extent, by\u00a0the\u00a0stage transfer of an office facing occupancy and valuation challenges.
Based on the 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\u00a0asset\u00a0types that are not individually material.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Loans measured at amortized cost | \n \n \n 57 | \n \n \n \n \n (88) \n | \n
| \n \n Debt securities measured at FVOCI | \n \n \n \n \n (120) \n | \n \n \n \n \n (140) \n | \n
| \n \n Other | \n \n \n \n \n (6) \n | \n \n \n \n \n (9) \n | \n
| \n \n Net impairment charge in profit or loss | \n \n \n \n \n (69) \n | \n \n \n \n \n (237) \n | \n
The following tables further explain 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 ECL staging | \n \n | \n\n | \n||
| \n \n Debt securities | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n POCI | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1, 2025 | \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 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 (269) \n | \n \n \n 269 | \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 (12) \n | \n \n \n - | \n \n \n 12 | \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 (36) \n | \n \n \n 36 | \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 1 | \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 24 | \n \n \n \n \n (24) \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 12 | \n \n \n - | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n
| \n \n \n \n Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (8,729) \n | \n \n \n \n \n (146) \n | \n \n \n \n \n (75) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (8,963) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 8,632 | \n \n \n 4 | \n \n \n 27 | \n \n \n - | \n \n \n 8,663 | \n
| \n \n Unrealized gains/losses through equity | \n \n \n 1,528 | \n \n \n 18 | \n \n \n \n \n (46) \n | \n \n \n \n \n (12) \n | \n \n \n 1,488 | \n
| \n \n Amortizations through income statement | \n \n \n 115 | \n \n \n 1 | \n \n \n 27 | \n \n \n 19 | \n \n \n 162 | \n
| \n \n Net exchange differences | \n \n \n \n \n (6,035) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (33) \n | \n \n \n \n \n (11) \n | \n \n \n \n \n (6,120) \n | \n
| \n \n Other movements | \n \n \n 7 | \n \n \n \n \n (23) \n | \n \n \n 14 | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Transfer to/from other headings | \n \n \n \n \n (21) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n
| \n \n Gross carrying amount on December 31, 2025 | \n \n \n 46,782 | \n \n \n 358 | \n \n \n 232 | \n \n \n 75 | \n \n \n 47,446 | \n
| \n \n Expected credit losses | \n \n \n \n \n (188) \n | \n \n \n \n \n (27) \n | \n \n \n \n \n (130) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (347) \n | \n
| \n | \n\n | \n||||
| \n \n Gross carrying amount on January 1, 2024 | \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 -\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 \n \n Derecognized assets (excl. write-offs) \n | \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 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 - | \n \n \n \n \n (1) \n | \n \n \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, 2024 | \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 | \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
The total amount of undiscounted ECL at initial recognition for purchased or originated credit-impaired financial assets recognized during the period was EUR 1 million (2024: EUR 4 million).
| \n | \n\n \n ECL staging | \n \n | \n||
| \n \n Loans | \n \n \n Stage 1 | \n \n \n Stage 2 | \n \n \n Stage 3 | \n \n \n Total | \n
| \n \n Gross carrying amount on January 1, 2025 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n 10,716 | \n
| \n \n Transfers: | \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 (22) \n | \n \n \n 22 | \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 (3) \n | \n \n \n 3 | \n \n \n - | \n
| \n \n -\u00a0\u00a0\u00a0\u00a0 Transfer from Stage 2 to Stage 1 | \n \n \n 2 | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n
| \n \n \n \n Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (654) \n | \n \n \n \n \n (45) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (707) \n | \n
| \n \n New financial assets originated or purchased | \n \n \n 934 | \n \n \n 23 | \n \n \n - | \n \n \n 957 | \n
| \n \n Realized gains and losses through income statement | \n \n \n 5 | \n \n \n 1 | \n \n \n 2 | \n \n \n 7 | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,251) \n | \n \n \n \n \n (16) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (1,268) \n | \n
| \n \n Gross carrying amount on December 31, 2025 | \n \n \n 9,588 | \n \n \n 115 | \n \n \n 3 | \n \n \n 9,705 | \n
| \n \n Expected credit losses | \n \n \n \n \n (11) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (33) \n | \n
| \n \n Net carrying amount on December 31, 2025 | \n \n \n 9,576 | \n \n \n 94 | \n \n \n 2 | \n \n \n 9,672 | \n
| \n | \n\n | \n|||
| \n \n Gross carrying amount on January 1, 2024 | \n \n \n 10,147 | \n \n \n 35 | \n \n \n - | \n \n \n 10,182 | \n
| \n \n Transfers: | \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 -\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 -\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 Derecognized assets (excl. write-offs) \n | \n \n \n \n \n (633) \n | \n \n \n \n \n (69) \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 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 4 | \n
| \n \n Net exchange differences | \n \n \n 667 | \n \n \n 7 | \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 (1) \n | \n
| \n \n Gross carrying amount on December 31, 2024 | \n \n \n 10,574 | \n \n \n 135 | \n \n \n 7 | \n \n \n 10,716 | \n
| \n \n Expected credit losses | \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 (118) \n | \n
| \n \n Net carrying amount on December 31, 2024 | \n \n \n 10,536 | \n \n \n 60 | \n \n \n 2 | \n \n \n 10,598 | \n
The total amount of purchased or originated credit\u2011impaired financial assets recognized during the period was EUR 0 million (2024: EUR 0 million).
\nManagement performs a sensitivity analysis on the ECL recognized on material classes of its assets. As ECL is not material at the end of 2025 and 2024, the sensitivity of ECL is assessed as not material for 2025 and 2024.
\nThe movements in the expected credit losses for receivables during the year were as follows:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n \n \n (18) \n | \n \n \n \n \n (10) \n | \n
| \n \n Expected credit losses | \n \n \n \n \n (6) \n | \n \n \n \n \n (9) \n | \n
| \n \n Other movements | \n \n \n 7 | \n \n \n 1 | \n
| \n \n On December 31 | \n \n \n \n \n (17) \n | \n \n \n \n \n (18) \n | \n
Aegon measures credit risk in line with the IFRS 9 approach for Expected Credit Loss (ECL). ECL is calculated as the product of\u00a0the projected probability of default (PD), the loss given default (LGD), and the exposure at default (EAD), discounted at an\u00a0appropriate rate. ECL is then determined as the probability-weighted, discounted credit loss across multiple scenarios (for\u00a0example,\u00a0base, positive, adverse).
\nAegon uses the \"three-stage\" model for impairment as outlined in IFRS 9, based on relative changes in credit quality since initial recognition. The table below shows the characteristics of the three stages.
| \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 the staging of financial instruments, Aegon incorporates multiple, forward looking macro- scenarios to drive the\u00a0ECL\u00a0provision. Forward-looking inputs used to measure ECLs must align with those used to assess significant increases in\u00a0credit\u00a0risk.
The Group uses different models to calculate ECL across asset classes. The following sections outline the Group\u2019s key judgments and assumptions for each model.
For bonds and private placements, the Group uses a global correlation model that links credit quality movements across asset classes to macroeconomic trends. This model determines conditional PD and LGD under specific macroeconomic scenarios. Unconditional PD and LGD curves are developed using distinct methods for sovereign debt, corporate bonds, and\u00a0private placements.
For commercial mortgage loans and mortgage-backed securities, parameters are estimated using commercial mortgage metrics. These build on corporate bond PD and LGD estimates, adjusted for factors like debt service coverage and loan-to-value ratios.
Asset-backed securities are modeled separately, with instruments pooled by collateral type, and credit-loss parameters estimated collectively. For collateralized debt (loan) obligations (CDOs and CLOs), different models are applied depending on\u00a0the region of the exposure.
Aegon considers a financial instrument to have experienced an SICR 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 Financial guarantees | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \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 increase in credit risk relative to origination.\u00a0The absolute threshold defines a stage for each rating and is primarily used when the rating at origination is unavailable or when an instrument is already in default. The relative PD thresholds can be converted into rating-based thresholds using Moody\u2019s\u00a0standard rating to PD mappings. The\u00a0difference between the PD at\u00a0origination and the PD corresponding to the threshold determines the number of notches that the rating must drop by. For\u00a0example, for a one-year-old instrument with a one-year remaining maturity this gives the following result:
\n\nFor debt securities, private loans, structured finance securities and deposits with financial institutions the watchlist approach is applied as an additional qualitative criterion. Instruments on the watchlist are closely monitored. Assets are added to the watchlist if their 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. For debt securities and private loans, this assessment is performed at the counterparty level and on a periodic basis. The Group periodically reviews the criteria used to identify SICR for\u00a0appropriateness. For loan commitments and financial guarantees, Aegon defines default consistently with the related loan or financial instrument, considering the same risk factors.
\nA backstop is applied to exposures deemed to have experienced an SICR when the borrower is more than 30 days past due on contractual payments in structured finance and 60 days in commercial mortgage loans. No\u00a0backstop is applied to the other asset classes.
\nAegon has used the low credit risk exemption for debt instruments. Debt instruments that have a credit rating of \"investment grade\" (rating \"BBB\" or higher) are considered to have low credit risk. External and internal credit ratings are used, respectively, to assess whether an SICR has occurred for these assets.
\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 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 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 Financial guarantee contracts | \n \n \n Defined as for the respective exposures to which the financial guarantee relates | \n
In addition to the criteria in the table above, Aegon identifies other indicators of unlikelihood of payment, such as a lack of future ability to generate cash flows, concerns about sources of recurring income, increased overall leverage of the borrower, material fraud, or the death of a client.
All the criteria above have been applied to Aegon\u2019s financial instruments and align with the definition of default used for internal credit risk management purposes. This definition is consistently used in modeling PD and EAD throughout Aegon\u2019s expected loss calculations.
An instrument is considered \"cured\" when it no longer meets any default criteria for six consecutive months and the obligor is\u00a0assessed as likely to pay. This six-month period assesses the likelihood that a financial instrument will return to default status after cure, using different cure definitions.
\nAegon uses a\u00a0set\u00a0of\u00a0variables describing the state of the macroeconomy as input to the calculation of the probability of default and prepayment.
Subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the\u00a0Group 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.
The lifetime PD for a financial instrument is calculated by summing the probabilities of all future developments that end up in the ECL. All possible future developments are enumerated, and a probability is estimated for each using statistical modeling techniques. The possibility of full prepayment is included among all possible future developments.
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
\nThe assessment of SICR and the calculation of ECL both incorporate forward-looking information.
The impact of economic variables on ECL and lifetime PD varies by financial instrument, with expert judgment applied throughout the process. Forecasts for these variables (the \u201cbase economic scenario\u201d) reflect Aegon\u2019s best estimate for\u00a0the\u00a0next five years. Beyond that, a mean reversion approach is used, assuming variables return to long-term averages (for\u00a0example,\u00a0unemployment rates or GDP growth) over three years. A statistical regression analysis has been performed to assess how historical changes in macroeconomic variables have influenced default and prepayment rates.
Starting from the base scenario, three macroeconomic scenarios \u2014 positive, neutral, and negative \u2014 are generated by applying shocks to macroeconomic variables, reflecting their historical correlations. These shocks correspond to the average deviation from the long-term mean observed in the best/worst 10% of historical quarters. ECL is calculated for each scenario, weighted accordingly, and then summed up. This multi-scenario approach ensures the ECL reflects a balanced estimate, not just the most likely scenario. The Group considers these\u00a0forecasts to represent its best estimate of the possible outcomes.
The Group writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and no reasonable expectation of recovery remains. Indicators include (i) ceasing enforcement activity; and (ii) where Aegon\u2019s recovery method is foreclosing on collateral, and the\u00a0value of\u00a0the collateral is not expected to fully recover.
The Group may modify loan terms through commercial renegotiations or for distressed loans to maximize recovery. Such\u00a0restructuring activities include extended payment terms and penalty interest arrangements. Policies are based on\u00a0management\u2019s judgment of indicators suggesting continued payment and are reviewed continuously.
\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:
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;
Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments derecognized in the period;
Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of\u00a0inputs to models;
Impacts on the measurement of ECL due to changes made to models and assumptions;
Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;
Foreign exchange retranslations for assets denominated in foreign currencies and other movements; and
Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during\u00a0the period.
| \n \n Non-derivatives - Undiscounted gross contractual cash flows | \n \n \n On demand | \n \n \n < 1 yr | \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 | \n
| \n \n 2025 | \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 83 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 3 | \n \n \n 61 | \n \n \n 156 | \n
| \n \n Subordinated loans | \n \n \n - | \n \n \n 78 | \n \n \n 78 | \n \n \n 59 | \n \n \n 40 | \n \n \n 40 | \n \n \n 2,234 | \n \n \n 2,529 | \n
| \n \n Borrowings | \n \n \n - | \n \n \n 94 | \n \n \n 713 | \n \n \n 48 | \n \n \n 48 | \n \n \n 48 | \n \n \n 1,004 | \n \n \n 1,956 | \n
| \n \n Investment contracts | \n \n \n 38,487 | \n \n \n 58,621 | \n \n \n 104 | \n \n \n 21 | \n \n \n 3 | \n \n \n 12 | \n \n \n 41 | \n \n \n 97,290 | \n
| \n \n Lease liabilities | \n \n \n - | \n \n \n 31 | \n \n \n 28 | \n \n \n 26 | \n \n \n 22 | \n \n \n 17 | \n \n \n 96 | \n \n \n 219 | \n
| \n \n Other financial liabilities | \n \n \n 2,877 | \n \n \n 1,099 | \n \n \n 36 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 4,016 | \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\n \n Real estate for own use | \n \n \n Equipment | \n \n \n Other | \n \n \n 2025 | \n \n \n Real estate for own use | \n \n \n Equipment | \n \n \n Other | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 154 | \n \n \n 4 | \n \n \n 4 | \n \n \n 162 | \n \n \n 138 | \n \n \n 10 | \n \n \n 3 | \n \n \n 150 | \n
| \n \n Additions | \n \n \n 15 | \n \n \n 1 | \n \n \n 3 | \n \n \n 19 | \n \n \n 31 | \n \n \n - | \n \n \n 3 | \n \n \n 34 | \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 \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 1 | \n \n \n - | \n \n \n - | \n \n \n 1 | \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 (24) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (30) \n | \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 \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n 6 | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n Other | \n \n \n \n \n (5) \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 \n - | \n
| \n \n On December 31 | \n \n \n 131 | \n \n \n 1 | \n \n \n 5 | \n \n \n 137 | \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\n | \n\n | \n\n | \n
| \n \n Gross carrying value | \n \n \n 253 | \n \n \n 15 | \n \n \n 11 | \n \n \n 279 | \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 (122) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (143) \n | \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 | \n \n \n 131 | \n \n \n 1 | \n \n \n 5 | \n \n \n 137 | \n \n \n 154 | \n \n \n 4 | \n \n \n 4 | \n \n \n 162 | \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 2025 | \n \n \n 2024 | \n
| \n \n Payables due to policyholders | \n \n \n 672 | \n \n \n 815 | \n
| \n \n Payables due to brokers and agents | \n \n \n 486 | \n \n \n 505 | \n
| \n \n Social security and taxes payable | \n \n \n 62 | \n \n \n 57 | \n
| \n \n Income tax payable | \n \n \n - | \n \n \n 4 | \n
| \n \n Investment creditors | \n \n \n 1,329 | \n \n \n 1,175 | \n
| \n \n Cash collateral on derivative transactions | \n \n \n 145 | \n \n \n 250 | \n
| \n \n Cash collateral on securities lent | \n \n \n 1,677 | \n \n \n 1,898 | \n
| \n \n Cash collateral - other | \n \n \n 150 | \n \n \n 92 | \n
| \n \n Lease liabilities | \n \n \n 187 | \n \n \n 216 | \n
| \n \n Other creditors | \n \n \n 1,736 | \n \n \n 2,112 | \n
| \n \n On December 31 | \n \n \n 6,445 | \n \n \n 7,124 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 6,281 | \n \n \n 6,930 | \n
| \n \n Non-current | \n \n \n 164 | \n \n \n 194 | \n
The carrying amounts disclosed are reasonable approximations of the fair values at year-end, given the predominantly current nature of the other liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21436m13896p": { "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: business units in the United States (excluding Aegon AM US), including any of the units\u2019 activities located outside of the\u00a0United\u00a0States;
United Kingdom: business activities from platform business and traditional insurance in the United Kingdom;
International: operations in Spain & Portugal, China, Brazil, Bermuda, Hong Kong, and Singapore, including any of the units\u2019 activities located outside these countries;
Asset Management: business activities from\u00a0AAM Global Platforms and Strategic Partnerships; and
Holding and other activities: financing, employee and other administrative expenses of holding companies.
The Netherlands, which covered business 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 (JVs) and\u00a0associated companies except for its approximate 24% stake in a.s.r. The result of associate a.s.r. is included in Other\u00a0income / (charges).
\nAegon uses the non-IFRS performance measure operating result that reflects Aegon\u2019s profit before tax from underlying business operations and mainly excludes components that relate to accounting\u00a0mismatches, that are dependent on market volatility or\u00a0relate to events that are considered outside of the normal course of business.
The reconciliation from the result before tax from continuing operations,\u00a0being the most comparable IFRS\u00a0measure,\u00a0to operating result\u00a0is presented later in this note.\u00a0Items excluded from operating result are fair value items, realized gains/(losses) on investments, impairment losses and reversals of impairment losses, and other income/(charges).
Realized gains/(losses) on\u00a0investments 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.
Fair value items include:
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\u00a0for 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 valuation of related liabilities. These include assets such as investments in hedge funds, private equities, real estate
(limited partnerships), convertible bonds and structured products;
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 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;
Other items that are outside of 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.
\nThe following table presents Aegon's segment results.
| \n \n Segment results | \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 JVs and associates elimi- | \n \n \n Consoli- | \n
| \n \n Operating result | \n \n \n 1,209 | \n \n \n 219 | \n \n \n 224 | \n \n \n 217 | \n \n \n \n \n (224) \n | \n \n \n 58 | \n \n \n 1,702 | \n \n \n 137 | \n \n \n 1,840 | \n
| \n \n Fair value items | \n \n \n 27 | \n \n \n \n \n (69) \n | \n \n \n \n \n (28) \n | \n \n \n - | \n \n \n 42 | \n \n \n 108 | \n \n \n 80 | \n \n \n \n \n (22) \n | \n \n \n 58 | \n
| \n \n Realized gains / (losses) on investments | \n \n \n \n \n (296) \n | \n \n \n - | \n \n \n 48 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (248) \n | \n \n \n \n \n (50) \n | \n \n \n \n \n (297) \n | \n
| \n \n Impairment (losses) / reversals | \n \n \n \n \n (60) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (64) \n | \n \n \n 1 | \n \n \n \n \n (63) \n | \n
| \n \n Non-operating items | \n \n \n \n \n (328) \n | \n \n \n \n \n (69) \n | \n \n \n 18 | \n \n \n \n \n (2) \n | \n \n \n 42 | \n \n \n 108 | \n \n \n \n \n (231) \n | \n \n \n \n \n (71) \n | \n \n \n \n \n (302) \n | \n
| \n \n \n \n Other income / (charges) \n | \n \n \n \n \n (518) \n | \n \n \n \n \n (90) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (20) \n | \n \n \n 217 | \n \n \n 115 | \n \n \n \n \n (317) \n | \n \n \n \n \n (176) \n | \n \n \n \n \n (493) \n | \n
| \n \n Result before tax from continuing operations | \n \n \n 362 | \n \n \n 60 | \n \n \n 221 | \n \n \n 195 | \n \n \n 35 | \n \n \n 281 | \n \n \n 1,154 | \n \n \n \n \n (109) \n | \n \n \n 1,045 | \n
| \n \n Income tax (expense) / benefit | \n \n \n 12 | \n \n \n \n \n (32) \n | \n \n \n \n \n (69) \n | \n \n \n \n \n (54) \n | \n \n \n 29 | \n \n \n \n \n (59) \n | \n \n \n \n \n (174) \n | \n \n \n 109 | \n \n \n \n \n (65) \n | \n
| \n \n Net result | \n \n \n 374 | \n \n \n 28 | \n \n \n 152 | \n \n \n 141 | \n \n \n 64 | \n \n \n 222 | \n \n \n 980 | \n \n \n - | \n \n \n 980 | \n
| \n \n Inter-segment operating result | \n \n \n \n \n (647) \n | \n \n \n \n \n (83) \n | \n \n \n 120 | \n \n \n 123 | \n \n \n 265 | \n \n \n 222 | \n \n | \n\n | \n\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 | \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 999 | \n \n \n 269 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1,270 | \n \n \n \n \n (1) \n | \n \n \n 1,269 | \n
| \n \n - Insurance contracts: without direct part. | \n \n \n 7,478 | \n \n \n 76 | \n \n \n 1,745 | \n \n \n - | \n \n \n - | \n \n \n \n \n (39) \n | \n \n \n 9,261 | \n \n \n \n \n (1,510) \n | \n \n \n 7,751 | \n
| \n \n Investment contracts with DPF | \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 77 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 77 | \n \n \n - | \n \n \n 77 | \n
| \n \n Insurance revenue | \n \n \n 8,477 | \n \n \n 422 | \n \n \n 1,748 | \n \n \n - | \n \n \n - | \n \n \n \n \n (39) \n | \n \n \n 10,608 | \n \n \n \n \n (1,511) \n | \n \n \n 9,097 | \n
| \n \n Interest revenue on financial instruments calculated using the effective interest method | \n \n \n 3,162 | \n \n \n 64 | \n \n \n 59 | \n \n \n 1 | \n \n \n 45 | \n \n \n \n \n (7) \n | \n \n \n 3,325 | \n \n \n \n \n (5) \n | \n \n \n 3,320 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest income from instruments measured at FVPL | \n \n \n 298 | \n \n \n 518 | \n \n \n 1 | \n \n \n 15 | \n \n \n - | \n \n \n - | \n \n \n 832 | \n \n \n - | \n \n \n 832 | \n
| \n \n Other investment income | \n \n \n 13 | \n \n \n 2,008 | \n \n \n 131 | \n \n \n 17 | \n \n \n 732 | \n \n \n \n \n (732) \n | \n \n \n 2,170 | \n \n \n \n \n (146) \n | \n \n \n 2,024 | \n
| \n \n Fee and commission income | \n \n \n 1,724 | \n \n \n 311 | \n \n \n 25 | \n \n \n 669 | \n \n \n - | \n \n \n \n \n (147) \n | \n \n \n 2,583 | \n \n \n \n \n (193) \n | \n \n \n 2,390 | \n
| \n \n Other revenues | \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 13,675 | \n \n \n 3,323 | \n \n \n 2,001 | \n \n \n 704 | \n \n \n 777 | \n \n \n \n \n (925) \n | \n \n \n 19,556 | \n \n \n \n \n (1,893) \n | \n \n \n 17,664 | \n
| \n \n Inter-segment revenues | \n \n \n 40 | \n \n \n - | \n \n \n - | \n \n \n 149 | \n \n \n 736 | \n \n | \n\n | \n\n | \n\n | \n
The Other charges of the Americas in 2025 are mainly due to unfavorable assumption updates, reserves for legal cases and restructuring charges.
| \n \n Segment results | \n \n \n Americas | \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 JVs and associates elimi- | \n \n \n Consoli- | \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 from continuing operations | \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 269 | \n \n \n 14 | \n \n | \n\n | \n\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 | \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 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. | \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 DPF | \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\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest income from 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 the Americas were mainly related to ECL balance increases for bonds and mortgages following a more adverse economic scenario output and real estate occupancy rates.
| \n \n Segment results | \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 JVs and associates elimi- | \n \n \n Consoli- | \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 274 | \n \n \n 11 | \n \n | \n\n | \n\n | \n
| \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 | \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 \n 700 | \n
| \n \n Investment contracts with DPF | \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\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest income from 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\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 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 results are included 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.
\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 items that cannot be directly reconciled to the notes, the explanation appears below the\u00a0table.
| \n | \n\n \n Note | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Result before tax from continuing operations | \n \n | \n\n \n 1,045 | \n \n \n 660 | \n \n \n \n \n (391) \n | \n
| \n \n Elimination of share in earnings of joint ventures and associates | \n \n | \n\n \n \n \n (137) \n | \n \n \n \n \n (234) \n | \n \n \n \n \n (19) \n | \n
| \n \n Insurance revenue | \n \n \n 6 | \n \n \n \n \n (11) \n | \n \n \n 2 | \n \n \n \n \n (15) \n | \n
| \n \n Insurance service expenses | \n \n \n 7 | \n \n \n 456 | \n \n \n 428 | \n \n \n 427 | \n
| \n \n Net income / (expenses) on reinsurance held | \n \n \n 8 | \n \n \n \n \n (33) \n | \n \n \n \n \n (56) \n | \n \n \n \n \n (23) \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 (871) \n | \n \n \n \n \n (240) \n | \n \n \n \n \n (224) \n | \n
| \n \n Net fair value change of derivatives | \n \n \n 9.4 / 10.4 | \n \n \n \n \n (4) \n | \n \n \n 3 | \n \n \n \n \n (7) \n | \n
| \n \n Realized gains and losses on financial investments | \n \n \n 9.4 / 10.4 | \n \n \n 251 | \n \n \n 93 | \n \n \n 683 | \n
| \n \n Net fair value change on investments in real estate | \n \n \n 9.4 / 10.4 | \n \n \n \n \n (10) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (2) \n | \n
| \n \n Impairment (losses) / reversals | \n \n \n 9.5 / 10.5 | \n \n \n 63 | \n \n \n 229 | \n \n \n 90 | \n
| \n \n \n \n Insurance finance income / (expenses) \n | \n \n \n 9 | \n \n \n 802 | \n \n \n 440 | \n \n \n 375 | \n
| \n \n Net reinsurance finance income / (expenses) on reinsurance held | \n \n \n 9 | \n \n \n \n \n (24) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (85) \n | \n
| \n \n \n \n Investment contract income / (expenses) \n | \n \n \n 10 | \n \n \n \n \n (13) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (5) \n | \n
| \n \n Fee and commission income | \n \n \n 12 | \n \n \n \n \n (6) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (11) \n | \n
| \n \n Commissions and expenses | \n \n \n 13 | \n \n \n 320 | \n \n \n 342 | \n \n \n 597 | \n
| \n \n Other income | \n \n \n 14 | \n \n \n \n \n (129) \n | \n \n \n \n \n (146) \n | \n \n \n \n \n (18) \n | \n
| \n \n Other charges | \n \n \n 14 | \n \n \n 6 | \n \n \n 6 | \n \n \n 79 | \n
| \n \n Results of businesses disposed during reporting periods | \n \n | \n\n \n - | \n \n \n - | \n \n \n 48 | \n
| \n \n Operating result | \n \n | \n\n \n 1,702 | \n \n \n 1,485 | \n \n \n 1,498 | \n
| \n \n Tax effect1 | \n \n | \n\n \n \n \n (371) \n | \n \n \n \n \n (309) \n | \n \n \n \n \n (246) \n | \n
| \n \n Operating result after tax | \n \n | \n\n \n 1,332 | \n \n \n 1,176 | \n \n \n 1,252 | \n
Insurance service expenses are mainly driven by three items: assumption changes on onerous contracts included in\u00a0Other\u00a0income / (charges) amounting to a loss of EUR 217 million (2024: loss of EUR 472 million), experience adjustments that relate to current service included in Other income / (charges) amounting to a loss of EUR 122 million (2024: EUR 5 million), changes in value of\u00a0VFA\u00a0products that result in (a reversal of) onerous contracts included in Fair value items, amounting to a loss of EUR 27 million\u00a0(2024: gain of 57 million).
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\u00a0the\u00a0operating result.
Insurance finance income / (expenses) mainly relate to changes in discount rates, amounting to a loss of EUR 802 million (2024: loss of EUR 440 million), which is included in Fair value items.
Commissions and expenses, which are included in Other income / (charges), relate to items that 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 2025 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amortization of deferred expenses and future servicing rights and other intangibles | \n \n \n \n \n (24) \n | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n \n \n (40) \n | \n
| \n \n Depreciation | \n \n \n \n \n (43) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (77) \n | \n
| \n \n Impairment losses / (reversals) on financial assets, excluding receivables | \n \n \n \n \n (62) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (63) \n | \n
| \n \n Impairment losses / (reversals) on non- financial assets and receivables | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \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 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amortization of deferred expenses and future servicing rights and other intangibles | \n \n \n \n \n (23) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n \n \n (40) \n | \n
| \n \n Depreciation | \n \n \n \n \n (65) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (94) \n | \n
| \n \n Impairment losses / (reversals) on financial assets, excluding receivables | \n \n \n \n \n (223) \n | \n \n \n - | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (228) \n | \n
| \n \n Impairment losses / (reversals) on non- financial assets and receivables | \n \n \n \n \n (9) \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\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 and other intangibles | \n \n \n \n \n (24) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (33) \n | \n
| \n \n Depreciation | \n \n \n \n \n (64) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (97) \n | \n
| \n \n Impairment losses / (reversals) on financial assets, excluding receivables | \n \n \n \n \n (59) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (59) \n | \n
| \n \n Impairment losses / (reversals) on non- financial assets and receivables | \n \n \n \n \n (32) \n | \n \n \n - | \n \n \n \n \n (21) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n \n \n (60) \n | \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 2025 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Number of employees - headcount 1 | \n \n \n 6,844 | \n \n \n 2,833 | \n \n \n 3,189 | \n \n \n 1,350 | \n \n \n 1,088 | \n \n \n 15,304 | \n
| \n \n Of which Aegon's share in JV and associates 2 | \n \n \n - | \n \n \n - | \n \n \n 2,364 | \n \n \n 275 | \n \n \n - | \n \n \n 2,639 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 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 in JV 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 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 in JV 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 On December 31, 2025 | \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 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 802 | \n \n \n 211 | \n \n \n 101 | \n \n \n 166 | \n \n \n 1,453 | \n \n \n - | \n \n \n 2,733 | \n
| \n \n Investments | \n \n \n 158,284 | \n \n \n 125,128 | \n \n \n 1,487 | \n \n \n 230 | \n \n \n 11 | \n \n \n - | \n \n \n 285,141 | \n
| \n \n Investments in joint ventures | \n \n \n - | \n \n \n - | \n \n \n 1,065 | \n \n \n 502 | \n \n \n - | \n \n \n - | \n \n \n 1,566 | \n
| \n \n Investments in associates | \n \n \n 78 | \n \n \n - | \n \n \n - | \n \n \n 296 | \n \n \n 2,264 | \n \n \n - | \n \n \n 2,638 | \n
| \n \n Reinsurance contract assets | \n \n \n 17,092 | \n \n \n 1 | \n \n \n 4,165 | \n \n \n - | \n \n \n - | \n \n \n \n \n (4,106) \n | \n \n \n 17,153 | \n
| \n \n Insurance contract assets | \n \n \n 18 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 18 | \n
| \n \n Deferred expenses | \n \n \n 438 | \n \n \n 14 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 452 | \n
| \n \n Other assets | \n \n \n 5,509 | \n \n \n 1,568 | \n \n \n 149 | \n \n \n 357 | \n \n \n 9,032 | \n \n \n \n \n (9,084) \n | \n \n \n 7,530 | \n
| \n \n Total assets | \n \n \n 182,221 | \n \n \n 126,923 | \n \n \n 6,968 | \n \n \n 1,551 | \n \n \n 12,760 | \n \n \n \n \n (13,190) \n | \n \n \n 317,233 | \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 7 | \n \n \n 4 | \n \n \n 184 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 195 | \n
| \n \n Insurance contract liabilities | \n \n \n 130,447 | \n \n \n 44,705 | \n \n \n 5,208 | \n \n \n - | \n \n \n - | \n \n \n \n \n (4,292) \n | \n \n \n 176,067 | \n
| \n \n Investment contracts with DPF | \n \n \n - | \n \n \n 21,269 | \n \n \n 12 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 21,281 | \n
| \n \n Investment contracts without DPF | \n \n \n 39,170 | \n \n \n 58,644 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 97,814 | \n
| \n \n Other liabilities | \n \n \n 7,744 | \n \n \n 1,056 | \n \n \n 220 | \n \n \n 326 | \n \n \n 3,264 | \n \n \n \n \n (230) \n | \n \n \n 12,380 | \n
| \n \n Total liabilities | \n \n \n 177,368 | \n \n \n 125,678 | \n \n \n 5,624 | \n \n \n 326 | \n \n \n 3,264 | \n \n \n \n \n (4,522) \n | \n \n \n 307,738 | \n
| \n \n On December 31, 2024 | \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 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 DPF | \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 DPF | \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
Investments in the above table 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 2025 | \n
| \n \n Shares | \n \n \n 211 | \n \n \n 15,315 | \n \n \n 60 | \n \n \n 9 | \n \n \n - | \n \n \n 15,595 | \n
| \n \n Debt securities | \n \n \n 48,104 | \n \n \n 6,871 | \n \n \n 1,125 | \n \n \n 102 | \n \n \n - | \n \n \n 56,202 | \n
| \n \n Unconsolidated investment funds | \n \n \n 92,292 | \n \n \n 98,164 | \n \n \n 215 | \n \n \n - | \n \n \n - | \n \n \n 190,671 | \n
| \n \n Loans | \n \n \n 9,753 | \n \n \n 1,714 | \n \n \n 3 | \n \n \n - | \n \n \n 11 | \n \n \n 11,481 | \n
| \n \n Other financial assets | \n \n \n 7,900 | \n \n \n 2,627 | \n \n \n 67 | \n \n \n 119 | \n \n \n - | \n \n \n 10,713 | \n
| \n \n Investments in real estate | \n \n \n 24 | \n \n \n 437 | \n \n \n 19 | \n \n \n - | \n \n \n - | \n \n \n 479 | \n
| \n \n Total investments on balance sheet | \n \n \n 158,284 | \n \n \n 125,128 | \n \n \n 1,487 | \n \n \n 230 | \n \n \n 11 | \n \n \n 285,141 | \n
| \n \n Off-balance sheet investments third parties | \n \n \n 220,501 | \n \n \n 158,105 | \n \n \n 4,602 | \n \n \n 223,228 | \n \n \n - | \n \n \n 606,437 | \n
| \n \n Total revenue-generating investments | \n \n \n 378,786 | \n \n \n 283,233 | \n \n \n 6,089 | \n \n \n 223,459 | \n \n \n 11 | \n \n \n 891,578 | \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 Financial assets measured at FVOCI | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Backing insurance contracts without direct part. | \n \n \n 39,952 | \n \n \n - | \n \n \n 1,158 | \n \n \n - | \n \n \n - | \n \n \n 41,109 | \n
| \n \n - Non-insurance related assets | \n \n \n 8,540 | \n \n \n - | \n \n \n 7 | \n \n \n 100 | \n \n \n - | \n \n \n 8,648 | \n
| \n \n Financial assets measured at FVPL | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n - Backing direct part. insurance contracts | \n \n \n 65,746 | \n \n \n 43,592 | \n \n \n 243 | \n \n \n - | \n \n \n - | \n \n \n 109,580 | \n
| \n \n - Backing insurance contracts without direct part. | \n \n \n 6,811 | \n \n \n 990 | \n \n \n 43 | \n \n \n - | \n \n \n - | \n \n \n 7,845 | \n
| \n \n - Backing direct part. investment contracts | \n \n \n - | \n \n \n 21,441 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 21,441 | \n
| \n \n - Non-insurance related assets | \n \n \n 27,540 | \n \n \n 58,668 | \n \n \n 18 | \n \n \n 94 | \n \n \n - | \n \n \n 86,320 | \n
| \n \n Financial assets measured at amortized cost | \n \n \n 9,671 | \n \n \n - | \n \n \n 1 | \n \n \n 36 | \n \n \n 11 | \n \n \n 9,719 | \n
| \n \n Investments in real estate | \n \n \n 24 | \n \n \n 437 | \n \n \n 19 | \n \n \n - | \n \n \n - | \n \n \n 479 | \n
| \n \n Total investments on balance sheet | \n \n \n 158,284 | \n \n \n 125,128 | \n \n \n 1,487 | \n \n \n 230 | \n \n \n 11 | \n \n \n 285,141 | \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 2024 | \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 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 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 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 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 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 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 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 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 897,096 | \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 Financial assets measured at FVOCI | \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 46,757 | \n
| \n \n - Non-insurance related assets | \n \n \n 7,906 | \n \n \n - | \n \n \n 7 | \n \n \n 46 | \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 - 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 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 8,616 | \n
| \n \n - Backing direct participation investment contracts | \n \n \n - | \n \n \n 23,687 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 23,687 | \n
| \n \n - Non-insurance related assets | \n \n \n 29,068 | \n \n \n 49,222 | \n \n \n - | \n \n \n 80 | \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 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 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 293,716 | \n
| \n | \n\n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Eliminations | \n \n \n Total | \n
| \n \n 2025 | \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 participation contracts | \n \n \n 67,074 | \n \n \n 44,188 | \n \n \n 246 | \n \n \n - | \n \n \n 111,508 | \n
| \n \n Without direct participation contracts | \n \n \n 63,355 | \n \n \n 517 | \n \n \n 4,918 | \n \n \n \n \n (4,292) \n | \n \n \n 64,497 | \n
| \n \n Contracts measured under the PAA | \n \n \n - | \n \n \n - | \n \n \n 44 | \n \n \n - | \n \n \n 44 | \n
| \n \n Investment contracts with DPF | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Direct participation contracts | \n \n \n - | \n \n \n 21,269 | \n \n \n - | \n \n \n - | \n \n \n 21,269 | \n
| \n \n Without direct participation contracts | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n - | \n \n \n 12 | \n
| \n \n Insurance contracts and investment contracts with DPF | \n \n \n 130,429 | \n \n \n 65,974 | \n \n \n 5,220 | \n \n \n \n \n (4,292) \n | \n \n \n 197,331 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Reinsurance contracts held | \n \n \n 17,086 | \n \n \n \n \n (3) \n | \n \n \n 3,981 | \n \n \n \n \n (4,106) \n | \n \n \n 16,958 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 participation 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 participation 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 with DPF | \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
Aegon\u2019s segment information is prepared by consolidating on a proportionate basis Aegon\u2019s joint ventures (JVs) and\u00a0associated companies except for its approximate 24% stake in a.s.r. The result of associate a.s.r. is included in Other\u00a0income / (charges).
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21437m13897p": { "value": "\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 2025 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Number of employees - headcount 1 | \n \n \n 6,844 | \n \n \n 2,833 | \n \n \n 3,189 | \n \n \n 1,350 | \n \n \n 1,088 | \n \n \n 15,304 | \n
| \n \n Of which Aegon's share in JV and associates 2 | \n \n \n - | \n \n \n - | \n \n \n 2,364 | \n \n \n 275 | \n \n \n - | \n \n \n 2,639 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 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 in JV 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 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 in JV 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 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 Expected insurance claims and expenses | \n \n \n 7,194 | \n \n \n 26 | \n \n \n 7,870 | \n \n \n 32 | \n \n \n 8,383 | \n \n \n 32 | \n
| \n \n Earnings released from CSM | \n \n \n 930 | \n \n \n 37 | \n \n \n 958 | \n \n \n 33 | \n \n \n 952 | \n \n \n 17 | \n
| \n \n Release of risk adjustment | \n \n \n 265 | \n \n \n 14 | \n \n \n 295 | \n \n \n 14 | \n \n \n 340 | \n \n \n 15 | \n
| \n \n Recovery of acquisition cash flows | \n \n \n 538 | \n \n \n - | \n \n \n 553 | \n \n \n - | \n \n \n 558 | \n \n \n - | \n
| \n \n Other | \n \n \n \n \n (20) \n | \n \n \n - | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n \n \n (39) \n | \n \n \n - | \n
| \n \n Contracts measured under Non-PAA 1 | \n \n \n 8,906 | \n \n \n 77 | \n \n \n 9,656 | \n \n \n 80 | \n \n \n 10,195 | \n \n \n 64 | \n
| \n \n Contracts measured under the PAA | \n \n \n 114 | \n \n \n - | \n \n \n 104 | \n \n \n - | \n \n \n 127 | \n \n \n - | \n
| \n \n Total Insurance revenue | \n \n \n 9,020 | \n \n \n 77 | \n \n \n 9,761 | \n \n \n 80 | \n \n \n 10,322 | \n \n \n 64 | \n
The following table shows the revenue recognized on insurance and investments contracts with discretionary participation features (DPF) 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 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Insurance contracts | \n \n | \n\n | \n\n | \n
| \n \n Transitioned under the modified retrospective approach | \n \n \n 441 | \n \n \n 529 | \n \n \n 514 | \n
| \n \n Transitioned under the fair value approach | \n \n \n 7,280 | \n \n \n 8,053 | \n \n \n 8,707 | \n
| \n \n Other contracts | \n \n \n 1,299 | \n \n \n 1,178 | \n \n \n 1,101 | \n
| \n \n Total revenue recognized on insurance contracts | \n \n \n 9,020 | \n \n \n 9,761 | \n \n \n 10,322 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts with DPF | \n \n | \n\n | \n\n | \n
| \n \n Transitioned under the fair value approach | \n \n \n 77 | \n \n \n 80 | \n \n \n 64 | \n
| \n \n Total revenue recognized on investment contracts with DPF | \n \n \n 77 | \n \n \n 80 | \n \n \n 64 | \n
| \n \n Insurance contracts without direct participation | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Debt securities and money market instruments | \n \n \n 2,211 | \n \n \n 2,233 | \n \n \n 2,166 | \n
| \n \n Loans | \n \n \n 421 | \n \n \n 428 | \n \n \n 433 | \n
| \n \n Other | \n \n \n 52 | \n \n \n 60 | \n \n \n 139 | \n
| \n \n For the year ended December 31 | \n \n \n 2,683 | \n \n \n 2,720 | \n \n \n 2,738 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \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 Non-derivative assets applying the fair value option | \n \n \n 234 | \n \n \n \n \n (10) \n | \n \n \n 133 | \n \n \n 357 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 258 | \n \n \n - | \n \n \n 258 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 234 | \n \n \n 248 | \n \n \n 133 | \n \n \n 615 | \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 For the year ended December 31, 2024 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \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 For the year ended December 31, 2023 | \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|
| \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 769 | \n \n \n 11 | \n \n \n 394 | \n \n \n 1,174 | \n
| \n \n Rental income | \n \n \n 16 | \n \n \n \n \n (1) \n | \n \n \n 10 | \n \n \n 25 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 785 | \n \n \n 10 | \n \n \n 403 | \n \n \n 1,198 | \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 For the year ended December 31, 2024 | \n \n \n 816 | \n \n \n 10 | \n \n \n 514 | \n \n \n 1,340 | \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 For the year ended December 31, 2023 | \n \n \n 845 | \n \n \n 11 | \n \n \n 427 | \n \n \n 1,283 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Debt securities and money market instruments | \n \n \n 557 | \n \n \n 484 | \n \n \n 457 | \n
| \n \n Other | \n \n \n 80 | \n \n \n 121 | \n \n \n 142 | \n
| \n \n For the year ended December 31 | \n \n \n 636 | \n \n \n 605 | \n \n \n 599 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 74 | \n \n \n 65 | \n \n \n 89 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n 15 | \n \n \n 13 | \n \n \n - | \n
| \n \n Non-derivative assets - PH designated | \n \n \n 129 | \n \n \n 108 | \n \n \n - | \n
| \n \n For the year ended December 31 | \n \n \n 217 | \n \n \n 186 | \n \n \n 89 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Dividend income | \n \n \n 819 | \n \n \n 724 | \n \n \n 547 | \n
| \n \n Rental income | \n \n \n 6 | \n \n \n 4 | \n \n \n 3 | \n
| \n \n For the year ended December 31 | \n \n \n 825 | \n \n \n 729 | \n \n \n 550 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Fee from asset management and insurance distribution | \n \n \n 2,092 | \n \n \n 2,097 | \n \n \n 1,967 | \n
| \n \n Sales commission | \n \n \n 62 | \n \n \n 55 | \n \n \n 21 | \n
| \n \n Securities lending income | \n \n \n 1 | \n \n \n - | \n \n \n - | \n
| \n \n Other fee and commission income | \n \n \n 235 | \n \n \n 226 | \n \n \n 174 | \n
| \n \n For the year ended December 31 | \n \n \n 2,390 | \n \n \n 2,378 | \n \n \n 2,163 | \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 243 | \n \n \n 253 | \n \n \n 220 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 Expected insurance claims and expenses | \n \n \n 7,194 | \n \n \n 26 | \n \n \n 7,870 | \n \n \n 32 | \n \n \n 8,383 | \n \n \n 32 | \n
| \n \n Earnings released from CSM | \n \n \n 930 | \n \n \n 37 | \n \n \n 958 | \n \n \n 33 | \n \n \n 952 | \n \n \n 17 | \n
| \n \n Release of risk adjustment | \n \n \n 265 | \n \n \n 14 | \n \n \n 295 | \n \n \n 14 | \n \n \n 340 | \n \n \n 15 | \n
| \n \n Recovery of acquisition cash flows | \n \n \n 538 | \n \n \n - | \n \n \n 553 | \n \n \n - | \n \n \n 558 | \n \n \n - | \n
| \n \n Other | \n \n \n \n \n (20) \n | \n \n \n - | \n \n \n \n \n (19) \n | \n \n \n - | \n \n \n \n \n (39) \n | \n \n \n - | \n
| \n \n Contracts measured under Non-PAA 1 | \n \n \n 8,906 | \n \n \n 77 | \n \n \n 9,656 | \n \n \n 80 | \n \n \n 10,195 | \n \n \n 64 | \n
| \n \n Contracts measured under the PAA | \n \n \n 114 | \n \n \n - | \n \n \n 104 | \n \n \n - | \n \n \n 127 | \n \n \n - | \n
| \n \n Total Insurance revenue | \n \n \n 9,020 | \n \n \n 77 | \n \n \n 9,761 | \n \n \n 80 | \n \n \n 10,322 | \n \n \n 64 | \n
The following table shows the revenue recognized on insurance and investments contracts with discretionary participation features (DPF) 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 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Insurance contracts | \n \n | \n\n | \n\n | \n
| \n \n Transitioned under the modified retrospective approach | \n \n \n 441 | \n \n \n 529 | \n \n \n 514 | \n
| \n \n Transitioned under the fair value approach | \n \n \n 7,280 | \n \n \n 8,053 | \n \n \n 8,707 | \n
| \n \n Other contracts | \n \n \n 1,299 | \n \n \n 1,178 | \n \n \n 1,101 | \n
| \n \n Total revenue recognized on insurance contracts | \n \n \n 9,020 | \n \n \n 9,761 | \n \n \n 10,322 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts with DPF | \n \n | \n\n | \n\n | \n
| \n \n Transitioned under the fair value approach | \n \n \n 77 | \n \n \n 80 | \n \n \n 64 | \n
| \n \n Total revenue recognized on investment contracts with DPF | \n \n \n 77 | \n \n \n 80 | \n \n \n 64 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 expenses | \n \n \n \n \n (7,601) \n | \n \n \n \n \n (30) \n | \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 Experience adjustments on incurred claims | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n \n \n (1,127) \n | \n \n \n \n \n (2) \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 Amortization of acquisition cash flows | \n \n \n \n \n (538) \n | \n \n \n - | \n \n \n \n \n (553) \n | \n \n \n - | \n \n \n \n \n (558) \n | \n \n \n - | \n
| \n \n Contracts measured under Non-PAA | \n \n \n \n \n (9,267) \n | \n \n \n \n \n (32) \n | \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 Contracts measured under the PAA | \n \n \n \n \n (123) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n - | \n \n \n \n \n (132) \n | \n \n \n - | \n
| \n \n Total Insurance service expenses | \n \n \n \n \n (9,391) \n | \n \n \n \n \n (32) \n | \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 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Assumption changes that adjust underlying onerous contracts | \n \n \n 33 | \n \n \n 56 | \n \n \n 31 | \n
| \n \n Experience adjustments that adjust underlying onerous contracts | \n \n \n 586 | \n \n \n 398 | \n \n \n 516 | \n
| \n \n CSM recognized for service received | \n \n \n \n \n (11) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (26) \n | \n
| \n \n Release of risk adjustment | \n \n \n \n \n (72) \n | \n \n \n \n \n (83) \n | \n \n \n \n \n (118) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 300 | \n \n \n \n \n (36) \n | \n \n \n \n \n (217) \n | \n
| \n \n Experience adjustments on incurred claims | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (2) \n | \n
| \n \n New reinsurance contracts issued/acquired | \n \n \n 1 | \n \n \n 1 | \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 Establishing of loss recovery component from onerous underlying contracts | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n Reversals of loss recovery component from onerous underlying contracts | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (3) \n | \n
| \n \n Contracts measured under Non-PAA | \n \n \n 837 | \n \n \n 325 | \n \n \n 181 | \n
| \n \n Contracts measured under the PAA | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 1 | \n
| \n \n Net income / (expenses) on reinsurance held | \n \n \n 836 | \n \n \n 325 | \n \n \n 182 | \n
| \n | \n\n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \n \n \n 2025 | \n |
| \n | \n\n \n Note | \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 2,683 | \n \n \n - | \n \n \n 2,683 | \n
| \n \n Interest income from instruments measured at FVPL | \n \n \n 9.2 | \n \n \n 234 | \n \n \n 248 | \n \n \n 133 | \n \n \n 615 | \n
| \n \n Other investment income | \n \n \n 9.3 | \n \n \n 785 | \n \n \n 10 | \n \n \n 403 | \n \n \n 1,198 | \n
| \n \n Results from financial transactions | \n \n \n 9.4 | \n \n \n 13,395 | \n \n \n \n \n (131) \n | \n \n \n 2,367 | \n \n \n 15,632 | \n
| \n \n Impairment (losses) / reversals | \n \n \n 9.5 | \n \n \n - | \n \n \n \n \n (46) \n | \n \n \n - | \n \n \n \n \n (46) \n | \n
| \n \n Interest expenses | \n \n | \n\n \n - | \n \n \n \n \n (135) \n | \n \n \n - | \n \n \n \n \n (135) \n | \n
| \n \n Profit or loss impacts | \n \n | \n\n \n 14,415 | \n \n \n 2,630 | \n \n \n 2,903 | \n \n \n 19,948 | \n
| \n \n \n \n Unrealized gains / (losses) on financial assets (FVOCI) \n | \n \n | \n\n \n - | \n \n \n 1,331 | \n \n \n - | \n \n \n 1,331 | \n
| \n \n \n \n Realized gains / (losses) on disposal of financial assets(FVOCI) \n | \n \n | \n\n \n - | \n \n \n 312 | \n \n \n - | \n \n \n 312 | \n
| \n \n OCI impacts | \n \n | \n\n \n - | \n \n \n 1,643 | \n \n \n - | \n \n \n 1,643 | \n
| \n \n Total insurance investment return | \n \n | \n\n \n 14,415 | \n \n \n 4,272 | \n \n \n 2,903 | \n \n \n 21,590 | \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 (3,021) \n | \n \n \n - | \n \n \n \n \n (3,021) \n | \n
| \n \n Interest rate and other financial assumption changes | \n \n | \n\n \n - | \n \n \n \n \n (1,771) \n | \n \n \n - | \n \n \n \n \n (1,771) \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 128 | \n \n \n - | \n \n \n 129 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\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 | \n \n | \n\n \n \n \n (14,316) \n | \n \n \n - | \n \n \n \n \n (2,916) \n | \n \n \n \n \n (17,232) \n | \n
| \n \n Change in fulfillment value - risk mitigation option | \n \n | \n\n \n 836 | \n \n \n - | \n \n \n - | \n \n \n 836 | \n
| \n \n \n \n Total insurance finance income / (expenses) \n | \n \n | \n\n \n \n \n (13,480) \n | \n \n \n \n \n (4,663) \n | \n \n \n \n \n (2,916) \n | \n \n \n \n \n (21,059) \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 (13,488) \n | \n \n \n \n \n (3,823) \n | \n \n \n \n \n (2,916) \n | \n \n \n \n \n (20,227) \n | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n 8 | \n \n \n \n \n (841) \n | \n \n \n - | \n \n \n \n \n (833) \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 580 | \n \n \n - | \n \n \n 580 | \n
| \n \n Interest rate and other financial assumption changes | \n \n | \n\n \n - | \n \n \n 183 | \n \n \n - | \n \n \n 183 | \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 (82) \n | \n \n \n - | \n \n \n \n \n (82) \n | \n
| \n \n Changes in risk of non-performance of reinsurers | \n \n | \n\n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n
| \n \n Total reinsurance finance income / (expenses) on reinsurance held | \n \n | \n\n \n - | \n \n \n 683 | \n \n \n - | \n \n \n 683 | \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 564 | \n \n \n - | \n \n \n 564 | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n - | \n \n \n 119 | \n \n \n - | \n \n \n 119 | \n
| \n \n Insurance net investment result | \n \n | \n\n \n 935 | \n \n \n 292 | \n \n \n \n \n (13) \n | \n \n \n 1,214 | \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 927 | \n \n \n \n \n (629) \n | \n \n \n \n \n (13) \n | \n \n \n 285 | \n
| \n \n Amounts recognized in OCI | \n \n | \n\n \n 8 | \n \n \n 921 | \n \n \n - | \n \n \n 929 | \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 Note | \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 income from 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 Profit or loss 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 \n \n Gains / (losses) on investments in equity instruments (FVOCI) \n | \n \n | \n\n \n - | \n \n \n 1 | \n \n \n - | \n \n \n 1 | \n
| \n \n \n \n Unrealized gains / (losses) on financial assets (FVOCI) \n | \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 \n \n Realized gains / (losses) on disposal of financial assets(FVOCI) \n | \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 Interest rate and other financial assumption changes | \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\n | \n\n | \n\n | \n\n | \n\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 | \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 - 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 Interest rate and other financial assumption changes | \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 Total 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 Note | \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 income from 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 Profit or loss 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 \n \n Unrealized gains / (losses) on financial assets (FVOCI) \n | \n \n | \n\n \n - | \n \n \n 1,311 | \n \n \n - | \n \n \n 1,311 | \n
| \n \n \n \n Realized gains / (losses) on disposal of financial assets (FVOCI) \n | \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 Interest rate and other financial assumption changes | \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\n | \n\n | \n\n | \n\n | \n\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 | \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 - 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 Interest rate and other financial assumption changes | \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 Total 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
During 2025, 2024 and 2023, Aegon did not change the basis of disaggregation of Insurance finance income / (expenses) between the Income statement and OCI.
\n| \n \n Insurance contracts without direct participation | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Debt securities and money market instruments | \n \n \n 2,211 | \n \n \n 2,233 | \n \n \n 2,166 | \n
| \n \n Loans | \n \n \n 421 | \n \n \n 428 | \n \n \n 433 | \n
| \n \n Other | \n \n \n 52 | \n \n \n 60 | \n \n \n 139 | \n
| \n \n For the year ended December 31 | \n \n \n 2,683 | \n \n \n 2,720 | \n \n \n 2,738 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \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 Non-derivative assets applying the fair value option | \n \n \n 234 | \n \n \n \n \n (10) \n | \n \n \n 133 | \n \n \n 357 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 258 | \n \n \n - | \n \n \n 258 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 234 | \n \n \n 248 | \n \n \n 133 | \n \n \n 615 | \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 For the year ended December 31, 2024 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \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 For the year ended December 31, 2023 | \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|
| \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 769 | \n \n \n 11 | \n \n \n 394 | \n \n \n 1,174 | \n
| \n \n Rental income | \n \n \n 16 | \n \n \n \n \n (1) \n | \n \n \n 10 | \n \n \n 25 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 785 | \n \n \n 10 | \n \n \n 403 | \n \n \n 1,198 | \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 For the year ended December 31, 2024 | \n \n \n 816 | \n \n \n 10 | \n \n \n 514 | \n \n \n 1,340 | \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 For the year ended December 31, 2023 | \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 2025 | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 1,010 | \n \n \n 12 | \n \n \n 542 | \n \n \n 1,565 | \n
| \n \n Debt securities and money market investments | \n \n \n 95 | \n \n \n 1,358 | \n \n \n 54 | \n \n \n 1,507 | \n
| \n \n Unconsolidated investment funds | \n \n \n 12,074 | \n \n \n - | \n \n \n 1,775 | \n \n \n 13,849 | \n
| \n \n Loans | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 4 | \n
| \n \n Other | \n \n \n - | \n \n \n 86 | \n \n \n - | \n \n \n 86 | \n
| \n | \n\n \n 13,179 | \n \n \n 1,459 | \n \n \n 2,371 | \n \n \n 17,010 | \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 (1) \n | \n \n \n 41 | \n \n \n \n \n (7) \n | \n \n \n 33 | \n
| \n \n Change in fair value of hedges on guarantees in products with DPF | \n \n \n 213 | \n \n \n - | \n \n \n - | \n \n \n 213 | \n
| \n \n Ineffective portion of hedge transactions to which hedge accounting is applied | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n | \n\n \n 212 | \n \n \n 39 | \n \n \n \n \n (7) \n | \n \n \n 244 | \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 (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Loans | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \n
| \n | \n\n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 5 | \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 FVOCI | \n \n \n - | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Investments measured at amortized cost | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \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 / (losses) on investments in real estate | \n \n \n 4 | \n \n \n - | \n \n \n 3 | \n \n \n 7 | \n
| \n \n Net fair value change on investments in real estate | \n \n \n - | \n \n \n 9 | \n \n \n - | \n \n \n 9 | \n
| \n | \n\n \n 4 | \n \n \n 9 | \n \n \n 3 | \n \n \n 15 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 13,395 | \n \n \n 1,512 | \n \n \n 2,367 | \n \n \n 17,275 | \n
| \n \n Represented by: | \n \n | \n\n | \n\n | \n\n | \n
| \n \n Assets designated at FVPL | \n \n \n 13,183 | \n \n \n \n \n (305) \n | \n \n \n 2,374 | \n \n \n 15,252 | \n
| \n \n Assets mandatorily measured at FVPL | \n \n \n 212 | \n \n \n 174 | \n \n \n \n \n (7) \n | \n \n \n 380 | \n
| \n \n Other | \n \n \n - | \n \n \n 1,643 | \n \n \n - | \n \n \n 1,643 | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \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 DPF | \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 Investments measured at FVOCI | \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 / (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 For the year ended December 31, 2024 | \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 Other | \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 \n \n Net fair value change of financial investments at FVPL (excl. derivatives) \n | \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 DPF | \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 / (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 For the year ended December 31, 2023 | \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 Other | \n \n \n - | \n \n \n 1,888 | \n \n \n - | \n \n \n 1,888 | \n
| \n \n Insurance contracts without direct participation | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 (107) \n | \n \n \n \n \n (103) \n | \n \n \n \n \n (77) \n | \n
| \n \n Loans | \n \n \n 57 | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \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 9 | \n \n \n 3 | \n \n \n 37 | \n
| \n \n Impairment (losses) / reversals on non-financial assets and receivables | \n \n \n \n \n (5) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (31) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (46) \n | \n \n \n \n \n (190) \n | \n \n \n \n \n (86) \n | \n
Impairment losses in 2025 decreased by EUR 144 million to EUR 46 million mainly due to lower expected credit loss (ECL) balance in Aegon US for mortgages following more favorable economic scenario output and real estate occupancy rates.
\nThe table below presents the asset and liability balances of insurance contracts and reinsurance contracts held, by measurement model. This includes contracts measured under Premium allocation approach (PAA) and contracts measured under the General model and Variable fee approach (i.e. Non-PAA).
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n \n By measurement model | \n \n \n Non-PAA | \n \n \n PAA | \n \n \n Total | \n \n \n Non-PAA | \n \n \n PAA | \n \n \n Total | \n
| \n \n Insurance contract assets | \n \n \n 18 | \n \n \n - | \n \n \n 18 | \n \n \n 125 | \n \n \n - | \n \n \n 125 | \n
| \n \n Insurance contract liabilities | \n \n \n 176,024 | \n \n \n 44 | \n \n \n 176,067 | \n \n \n 188,318 | \n \n \n 41 | \n \n \n 188,359 | \n
| \n \n Insurance contracts net balance | \n \n \n 176,006 | \n \n \n 44 | \n \n \n 176,049 | \n \n \n 188,193 | \n \n \n 41 | \n \n \n 188,233 | \n
| \n \n Reinsurance contract assets | \n \n \n 17,146 | \n \n \n 8 | \n \n \n 17,153 | \n \n \n 16,015 | \n \n \n 7 | \n \n \n 16,021 | \n
| \n \n Reinsurance contract liabilities | \n \n \n 195 | \n \n \n - | \n \n \n 195 | \n \n \n 303 | \n \n \n - | \n \n \n 303 | \n
| \n \n Reinsurance contracts net balance | \n \n \n 16,950 | \n \n \n 8 | \n \n \n 16,958 | \n \n \n 15,712 | \n \n \n 7 | \n \n \n 15,719 | \n
All groups of investment contracts with discretionary participation features (DPF) were measured under Non-PAA and were in\u00a0a liability position at the reporting date and comparative period.
\nThe following tables present the reconciliation of the net carrying amounts of insurance contracts, reinsurance contracts held and investment contracts with DPF.
\nFor insurance contracts and investment contracts with DPF - Liability for remaining coverage excluding loss component (LFRC), Loss component (LC) and Liability for incurred claims (LFIC)
For reinsurance contracts held - Asset for remaining coverage excluding loss recovery component (AFRC), Loss recovery component (LRC) and Asset for incurred claims (AFIC)
| \n | \n\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n Insurance contracts (Non-PAA) - by type | \n \n \n LFRC | \n \n \n LC | \n \n \n LFIC | \n \n \n Total | \n \n \n LFRC | \n \n \n LC | \n \n \n LFIC | \n \n \n Total | \n
| \n \n Opening 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 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 159,857 | \n \n \n 1,252 | \n \n \n 27,209 | \n \n \n 188,318 | \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 | \n \n \n 157,971 | \n \n \n 2,625 | \n \n \n 27,596 | \n \n \n 188,193 | \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\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (8,906) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (8,906) \n | \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\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Incurred claims and expenses | \n \n \n - | \n \n \n \n \n (378) \n | \n \n \n 7,967 | \n \n \n 7,589 | \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 acquisition cash flows | \n \n \n 538 | \n \n \n - | \n \n \n - | \n \n \n 538 | \n \n \n 553 | \n \n \n - | \n \n \n - | \n \n \n 553 | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n - | \n \n \n 1,139 | \n \n \n - | \n \n \n 1,139 | \n \n \n - | \n \n \n 1,118 | \n \n \n - | \n \n \n 1,118 | \n
| \n \n Adjustments for incurred claims | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Insurance service expenses | \n \n \n 538 | \n \n \n 762 | \n \n \n 7,967 | \n \n \n 9,267 | \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 (5,809) \n | \n \n \n - | \n \n \n 5,809 | \n \n \n - | \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 (14,177) \n | \n \n \n 762 | \n \n \n 13,776 | \n \n \n 361 | \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\n | \n\n | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 18,005 | \n \n \n 138 | \n \n \n - | \n \n \n 18,143 | \n \n \n 11,924 | \n \n \n 62 | \n \n \n - | \n \n \n 11,986 | \n
| \n \n Cash flows | \n \n \n \n \n (4,721) \n | \n \n \n \n \n (353) \n | \n \n \n \n \n (6,252) \n | \n \n \n \n \n (11,326) \n | \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 Contracts disposed during the period | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n \n \n \n \n (94) \n | \n \n \n - | \n \n \n \n \n (85) \n | \n
| \n \n Disposal of a business | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Transfers to disposal groups | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \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 - | \n \n \n - | \n \n \n - | \n \n \n - | \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 (10) \n | \n \n \n 10 | \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 Net exchange differences | \n \n \n \n \n (15,522) \n | \n \n \n \n \n (326) \n | \n \n \n \n \n (3,510) \n | \n \n \n \n \n (19,358) \n | \n \n \n 9,286 | \n \n \n 153 | \n \n \n 1,557 | \n \n \n 10,996 | \n
| \n \n Net closing balance | \n \n \n 141,539 | \n \n \n 2,856 | \n \n \n 31,611 | \n \n \n 176,006 | \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 59 | \n \n \n \n \n (27) \n | \n \n \n \n \n (14) \n | \n \n \n 18 | \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 141,597 | \n \n \n 2,829 | \n \n \n 31,597 | \n \n \n 176,024 | \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 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n Reinsurance contracts (Non-PAA) - by type | \n \n \n AFRC | \n \n \n LRC | \n \n \n AFIC | \n \n \n Total | \n \n \n AFRC | \n \n \n LRC | \n \n \n AFIC | \n \n \n Total | \n
| \n \n Opening 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 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 2,011 | \n \n \n \n \n (1,270) \n | \n \n \n \n \n (439) \n | \n \n \n 303 | \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 | \n \n \n 13,954 | \n \n \n 1,745 | \n \n \n 13 | \n \n \n 15,712 | \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\n | \n\n | \n\n | \n
| \n \n Net expenses from reinsurance contracts | \n \n \n 308 | \n \n \n 254 | \n \n \n 275 | \n \n \n 837 | \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 613 | \n \n \n 69 | \n \n \n - | \n \n \n 681 | \n \n \n 41 | \n \n \n 19 | \n \n \n - | \n \n \n 61 | \n
| \n \n Effect of reinsurer default risk changes | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 2 | \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 profit or loss and OCI | \n \n \n 922 | \n \n \n 322 | \n \n \n 275 | \n \n \n 1,520 | \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\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n 2,443 | \n \n \n \n \n (166) \n | \n \n \n \n \n (597) \n | \n \n \n 1,680 | \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 Other movements | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 371 | \n \n \n \n \n (409) \n | \n \n \n 234 | \n \n \n 196 | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,761) \n | \n \n \n \n \n (211) \n | \n \n \n 10 | \n \n \n \n \n (1,961) \n | \n \n \n 908 | \n \n \n 103 | \n \n \n - | \n \n \n 1,011 | \n
| \n \n Net closing balance | \n \n \n 15,558 | \n \n \n 1,690 | \n \n \n \n \n (298) \n | \n \n \n 16,950 | \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 15,749 | \n \n \n 1,693 | \n \n \n \n \n (296) \n | \n \n \n 17,146 | \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 191 | \n \n \n 2 | \n \n \n 2 | \n \n \n 195 | \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 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n Investment contracts with DPF - by type | \n \n \n LFRC | \n \n \n LC | \n \n \n LFIC | \n \n \n Total | \n \n \n LFRC | \n \n \n LC | \n \n \n LFIC | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n \n \n 21,594 | \n \n \n - | \n \n \n - | \n \n \n 21,594 | \n
| \n \n Net opening balance | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \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\n | \n\n | \n\n | \n
| \n \n Insurance revenue | \n \n \n \n \n (77) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (77) \n | \n \n \n \n \n (80) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (80) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Incurred claims and expenses | \n \n \n - | \n \n \n - | \n \n \n 30 | \n \n \n 30 | \n \n \n - | \n \n \n - | \n \n \n 43 | \n \n \n 43 | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Insurance service expenses | \n \n \n - | \n \n \n 2 | \n \n \n 30 | \n \n \n 32 | \n \n \n - | \n \n \n - | \n \n \n 43 | \n \n \n 43 | \n
| \n \n Investment components | \n \n \n \n \n (3,109) \n | \n \n \n - | \n \n \n 3,109 | \n \n \n - | \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 (3,186) \n | \n \n \n 2 | \n \n \n 3,139 | \n \n \n \n \n (45) \n | \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\n | \n\n | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 2,916 | \n \n \n - | \n \n \n - | \n \n \n 2,916 | \n \n \n 2,270 | \n \n \n - | \n \n \n - | \n \n \n 2,270 | \n
| \n \n Cash flows | \n \n \n 394 | \n \n \n - | \n \n \n \n \n (3,138) \n | \n \n \n \n \n (2,744) \n | \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 Net exchange differences | \n \n \n \n \n (1,177) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,177) \n | \n \n \n 1,030 | \n \n \n - | \n \n \n - | \n \n \n 1,030 | \n
| \n \n Net closing balance | \n \n \n 21,278 | \n \n \n 2 | \n \n \n 1 | \n \n \n 21,281 | \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 - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 21,278 | \n \n \n 2 | \n \n \n 1 | \n \n \n 21,281 | \n \n \n 22,332 | \n \n \n - | \n \n \n - | \n \n \n 22,332 | \n
The following schedules presents the measurement components comprising the Best estimate liability (BEL), Risk adjustment (RA), and contractual Service Margin (CSM).
| \n | \n\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n Insurance contracts (Non-PAA) - by component | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n
| \n \n Opening 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 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 176,063 | \n \n \n 3,295 | \n \n \n 8,959 | \n \n \n 188,318 | \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 | \n \n \n 175,611 | \n \n \n 3,618 | \n \n \n 8,964 | \n \n \n 188,193 | \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\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust CSM | \n \n \n \n \n (371) \n | \n \n \n \n \n (78) \n | \n \n \n 449 | \n \n \n - | \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 adjust onerous contracts | \n \n \n 1,069 | \n \n \n 29 | \n \n \n - | \n \n \n 1,098 | \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 (788) \n | \n \n \n 118 | \n \n \n 669 | \n \n \n - | \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 25 | \n \n \n 17 | \n \n \n - | \n \n \n 42 | \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 \n \n (65) \n | \n \n \n 86 | \n \n \n 1,118 | \n \n \n 1,139 | \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\n | \n\n | \n\n | \n
| \n \n Earnings released from CSM | \n \n \n - | \n \n \n - | \n \n \n \n \n (930) \n | \n \n \n \n \n (930) \n | \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 (278) \n | \n \n \n - | \n \n \n \n \n (278) \n | \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 439 | \n \n \n - | \n \n \n - | \n \n \n 439 | \n \n \n 101 | \n \n \n - | \n \n \n - | \n \n \n 101 | \n
| \n \n Revenue from policyholder tax expenses incurred | \n \n \n \n \n (11) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (11) \n | \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 428 | \n \n \n \n \n (278) \n | \n \n \n \n \n (930) \n | \n \n \n \n \n (780) \n | \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\n | \n\n | \n\n | \n
| \n \n Experience adjustments on incurred claims | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 1 | \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 1 | \n \n \n - | \n \n \n - | \n \n \n 1 | \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\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n 364 | \n \n \n \n \n (191) \n | \n \n \n 189 | \n \n \n 361 | \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\n | \n\n | \n\n | \n
| \n \n General model | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n \n 2,654 | \n \n \n 141 | \n \n \n 226 | \n \n \n 3,021 | \n \n \n 2,693 | \n \n \n 178 | \n \n \n 225 | \n \n \n 3,096 | \n
| \n \n Interest rate and other financial assumption changes | \n \n \n 1,775 | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n 1,771 | \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 \n \n (138) \n | \n \n \n 10 | \n \n \n - | \n \n \n \n \n (128) \n | \n \n \n 121 | \n \n \n - | \n \n \n - | \n \n \n 121 | \n
| \n | \n\n | \n\n | \n\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\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets | \n \n \n 14,316 | \n \n \n - | \n \n \n - | \n \n \n 14,316 | \n \n \n 12,719 | \n \n \n - | \n \n \n - | \n \n \n 12,719 | \n
| \n \n Change in fulfilment value - risk mitigation option | \n \n \n \n \n (836) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (836) \n | \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 17,770 | \n \n \n 148 | \n \n \n 226 | \n \n \n 18,143 | \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\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 14,405 | \n \n \n - | \n \n \n - | \n \n \n 14,405 | \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 (24,576) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (24,576) \n | \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 (1,126) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,126) \n | \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 (30) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (30) \n | \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 (11,326) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (11,326) \n | \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\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (128) \n | \n \n \n - | \n \n \n 43 | \n \n \n \n \n (85) \n | \n
| \n \n Disposal of a business | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Transfers to disposal groups | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \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 \n - | \n \n \n - | \n \n \n - | \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 (7) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \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 Net exchange differences | \n \n \n \n \n (17,981) \n | \n \n \n \n \n (405) \n | \n \n \n \n \n (972) \n | \n \n \n \n \n (19,358) \n | \n \n \n 10,242 | \n \n \n 224 | \n \n \n 529 | \n \n \n 10,996 | \n
| \n \n Net closing balance | \n \n \n 164,430 | \n \n \n 3,169 | \n \n \n 8,406 | \n \n \n 176,006 | \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 100 | \n \n \n \n \n (35) \n | \n \n \n \n \n (47) \n | \n \n \n 18 | \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 164,531 | \n \n \n 3,134 | \n \n \n 8,359 | \n \n \n 176,024 | \n \n \n 176,063 | \n \n \n 3,295 | \n \n \n 8,959 | \n \n \n 188,318 | \n
| \n | \n\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n Reinsurance contracts (Non-PAA) - by component | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 15,374 | \n \n \n 433 | \n \n \n 208 | \n \n \n 16,015 | \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 693 | \n \n \n \n \n (361) \n | \n \n \n \n \n (29) \n | \n \n \n 303 | \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 | \n \n \n 14,681 | \n \n \n 794 | \n \n \n 237 | \n \n \n 15,712 | \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\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust CSM | \n \n \n \n \n (234) \n | \n \n \n \n \n (20) \n | \n \n \n 254 | \n \n \n - | \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 adjust underlying onerous contracts | \n \n \n 591 | \n \n \n 9 | \n \n \n 18 | \n \n \n 618 | \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 recognized | \n \n \n \n \n (200) \n | \n \n \n 60 | \n \n \n 141 | \n \n \n 1 | \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 157 | \n \n \n 50 | \n \n \n 413 | \n \n \n 620 | \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\n | \n\n | \n\n | \n
| \n \n CSM recognized for service received | \n \n \n - | \n \n \n - | \n \n \n \n \n (11) \n | \n \n \n \n \n (11) \n | \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 (72) \n | \n \n \n - | \n \n \n \n \n (72) \n | \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 300 | \n \n \n - | \n \n \n - | \n \n \n 300 | \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 300 | \n \n \n \n \n (72) \n | \n \n \n \n \n (11) \n | \n \n \n 217 | \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\n | \n\n | \n\n | \n
| \n \n Experience adjustment on incurred claims | \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 3 | \n
| \n \n Changes that relate to past service | \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 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net income/ (expenses) on reinsurance held | \n \n \n 457 | \n \n \n \n \n (22) \n | \n \n \n 402 | \n \n \n 837 | \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\n | \n\n | \n
| \n \n \n \n Reinsurance finance income / (expenses) \n | \n \n \n 652 | \n \n \n 43 | \n \n \n \n \n (12) \n | \n \n \n 683 | \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\n | \n\n | \n\n | \n
| \n \n \n \n Premiums paid (net of commission) \n | \n \n \n 4,950 | \n \n \n - | \n \n \n - | \n \n \n 4,950 | \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 (3,270) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,270) \n | \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 \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 1,680 | \n \n \n - | \n \n \n - | \n \n \n 1,680 | \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\n | \n\n | \n\n | \n
| \n \n Reinsurance contracts disposed | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \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 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 207 | \n \n \n 5 | \n \n \n 14 | \n \n \n 226 | \n
| \n \n Other movements | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 143 | \n \n \n 5 | \n \n \n 48 | \n \n \n 196 | \n
| \n \n Net exchange difference | \n \n \n \n \n (1,826) \n | \n \n \n \n \n (94) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (1,961) \n | \n \n \n 949 | \n \n \n 50 | \n \n \n 12 | \n \n \n 1,011 | \n
| \n \n Net closing balance | \n \n \n 15,644 | \n \n \n 721 | \n \n \n 585 | \n \n \n 16,950 | \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 15,816 | \n \n \n 691 | \n \n \n 639 | \n \n \n 17,146 | \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 172 | \n \n \n \n \n (30) \n | \n \n \n 54 | \n \n \n 195 | \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\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n Investment contracts with DPF - by component | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n \n Net opening balance | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \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\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust CSM | \n \n \n \n \n (66) \n | \n \n \n 5 | \n \n \n 61 | \n \n \n - | \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 in estimates that adjust onerous contracts | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Changes that relate to future service | \n \n \n \n \n (64) \n | \n \n \n 5 | \n \n \n 61 | \n \n \n 2 | \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\n | \n\n | \n\n | \n
| \n \n Earnings released from CSM | \n \n \n - | \n \n \n - | \n \n \n \n \n (37) \n | \n \n \n \n \n (37) \n | \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 - | \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 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \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 4 | \n \n \n \n \n (14) \n | \n \n \n \n \n (37) \n | \n \n \n \n \n (47) \n | \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\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n \n \n (60) \n | \n \n \n \n \n (10) \n | \n \n \n 25 | \n \n \n \n \n (45) \n | \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\n | \n\n | \n\n | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets | \n \n \n 2,916 | \n \n \n - | \n \n \n - | \n \n \n 2,916 | \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 2,916 | \n \n \n - | \n \n \n - | \n \n \n 2,916 | \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\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 413 | \n \n \n - | \n \n \n - | \n \n \n 413 | \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 (3,157) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,157) \n | \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 Acquisition costs paid | \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
| \n \n Other | \n \n \n 1 | \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 Cash flows | \n \n \n \n \n (2,744) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,744) \n | \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\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,159) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (1,177) \n | \n \n \n 1,015 | \n \n \n 6 | \n \n \n 10 | \n \n \n 1,030 | \n
| \n \n Net closing balance | \n \n \n 20,940 | \n \n \n 97 | \n \n \n 245 | \n \n \n 21,281 | \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 - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 20,940 | \n \n \n 97 | \n \n \n 245 | \n \n \n 21,281 | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n
| \n | \n\n | \n\n | \n\n \n 2025 | \n \n | \n\n | \n\n \n 2024 | \n
| \n \n \n \n Insurance contracts (Non-PAA) \n | \n \n \n Non-onerous | \n \n \n Onerous | \n \n \n Total | \n \n \n Non-onerous | \n \n \n Onerous | \n \n \n Total | \n
| \n \n Present value of cash inflows | \n \n \n \n \n (5,661) \n | \n \n \n \n \n (1,019) \n | \n \n \n \n \n (6,680) \n | \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 \n \n Present value of cash outflows (excl. acquisition costs) \n | \n \n \n 4,873 | \n \n \n 1,044 | \n \n \n 5,917 | \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 118 | \n \n \n 17 | \n \n \n 135 | \n \n \n 102 | \n \n \n 18 | \n \n \n 120 | \n
| \n \n Contractual service margin | \n \n \n 669 | \n \n \n - | \n \n \n 669 | \n \n \n 546 | \n \n \n - | \n \n \n 546 | \n
| \n \n Loss recognized on initial recognition | \n \n \n - | \n \n \n 42 | \n \n \n 42 | \n \n \n - | \n \n \n 54 | \n \n \n 54 | \n
| \n \n \n \n Reinsurance contracts (Non-PAA) \n | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Present value of cash inflows | \n \n \n 3,284 | \n \n \n 54 | \n
| \n \n Present value of cash outflows | \n \n \n \n \n (3,484) \n | \n \n \n \n \n (65) \n | \n
| \n \n Risk adjustment for non-financial risk | \n \n \n 60 | \n \n \n 4 | \n
| \n \n Contractual service margin | \n \n \n 141 | \n \n \n 8 | \n
| \n \n Gain / (Loss) recognized on initial recognition | \n \n \n 1 | \n \n \n 1 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Reinsurance contracts | \n ||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n <1 year | \n \n \n 864 | \n \n \n 922 | \n \n \n 37 | \n \n \n - | \n
| \n \n 1-2 years | \n \n \n 780 | \n \n \n 832 | \n \n \n 36 | \n \n \n 1 | \n
| \n \n 2-3 years | \n \n \n 705 | \n \n \n 752 | \n \n \n 35 | \n \n \n 4 | \n
| \n \n 3-4 years | \n \n \n 638 | \n \n \n 679 | \n \n \n 34 | \n \n \n 6 | \n
| \n \n 4-5 years | \n \n \n 577 | \n \n \n 614 | \n \n \n 34 | \n \n \n 7 | \n
| \n \n 5-10 years | \n \n \n 2,108 | \n \n \n 2,261 | \n \n \n 146 | \n \n \n 49 | \n
| \n \n 10-20 years | \n \n \n 1,856 | \n \n \n 2,009 | \n \n \n 172 | \n \n \n 106 | \n
| \n \n > 20 years | \n \n \n 879 | \n \n \n 896 | \n \n \n 91 | \n \n \n 63 | \n
| \n \n On December 31 | \n \n \n 8,406 | \n \n \n 8,964 | \n \n \n 585 | \n \n \n 237 | \n
The table below presents the reconciliation of the contractual service margin recognized for contracts in force as of the\u00a0transition date. The transition methods applied to these contracts include the Modified retrospective approach (MRA), Fair\u00a0value approach (FVA) and Other applicable method.
| \n | \n\n \n Insurance contracts | \n \n \n Reinsurance contracts held | \n \n \n Investment contracts with DPF | \n |||||||||
| \n | \n\n \n MRA | \n \n \n FVA | \n \n \n Other | \n \n \n Total | \n \n \n MRA | \n \n \n FVA | \n \n \n Other | \n \n \n Total | \n \n \n MRA | \n \n \n FVA | \n \n \n Other | \n \n \n Total | \n
| \n \n On January 1, 2025 | \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 28 | \n \n \n 208 | \n \n \n 237 | \n \n \n - | \n \n \n 233 | \n \n \n - | \n \n \n 233 | \n
| \n \n Changes in estimates that adjust CSM | \n \n \n \n \n (296) \n | \n \n \n 563 | \n \n \n 181 | \n \n \n 449 | \n \n \n - | \n \n \n 224 | \n \n \n 30 | \n \n \n 254 | \n \n \n - | \n \n \n 61 | \n \n \n - | \n \n \n 61 | \n
| \n \n Changes in estimates that adjust onerous contracts | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 18 | \n \n \n - | \n \n \n 18 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n New contracts recognized | \n \n \n - | \n \n \n - | \n \n \n 669 | \n \n \n 669 | \n \n \n - | \n \n \n - | \n \n \n 141 | \n \n \n 141 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Earnings released from CSM | \n \n \n \n \n (130) \n | \n \n \n \n \n (483) \n | \n \n \n \n \n (317) \n | \n \n \n \n \n (930) \n | \n \n \n - | \n \n \n 9 | \n \n \n \n \n (20) \n | \n \n \n \n \n (11) \n | \n \n \n - | \n \n \n \n \n (37) \n | \n \n \n - | \n \n \n \n \n (37) \n | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 3 | \n \n \n 129 | \n \n \n 93 | \n \n \n 226 | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n 11 | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Net exchange differences | \n \n \n \n \n (156) \n | \n \n \n \n \n (511) \n | \n \n \n \n \n (305) \n | \n \n \n \n \n (972) \n | \n \n \n - | \n \n \n \n \n (11) \n | \n \n \n \n \n (30) \n | \n \n \n \n \n (42) \n | \n \n \n - | \n \n \n \n \n (13) \n | \n \n \n - | \n \n \n \n \n (13) \n | \n
| \n \n On December 31, 2025 | \n \n \n 879 | \n \n \n 4,192 | \n \n \n 3,335 | \n \n \n 8,406 | \n \n \n - | \n \n \n 245 | \n \n \n 340 | \n \n \n 585 | \n \n \n - | \n \n \n 244 | \n \n \n - | \n \n \n 245 | \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 \n \n (149) \n | \n \n \n 227 | \n \n \n 78 | \n \n \n - | \n \n \n 180 | \n \n \n - | \n \n \n 180 | \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 192 | \n \n \n \n \n (30) \n | \n \n \n 163 | \n \n \n - | \n \n \n 76 | \n \n \n - | \n \n \n 76 | \n
| \n \n Changes in estimates that adjust onerous contracts | \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 - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n New contracts recognized | \n \n \n - | \n \n \n - | \n \n \n 546 | \n \n \n 546 | \n \n \n - | \n \n \n - | \n \n \n 9 | \n \n \n 9 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Earnings released from CSM | \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 18 | \n \n \n \n \n (32) \n | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (33) \n | \n \n \n - | \n \n \n \n \n (33) \n | \n
| \n \n Insurance finance (income) / expenses | \n \n \n 5 | \n \n \n 146 | \n \n \n 74 | \n \n \n 225 | \n \n \n - | \n \n \n \n \n (25) \n | \n \n \n 13 | \n \n \n \n \n (12) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \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 34 | \n \n \n - | \n \n \n 34 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \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 \n \n (2) \n | \n \n \n 14 | \n \n \n 12 | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n 10 | \n
| \n \n Other | \n \n \n - | \n \n \n 5 | \n \n \n - | \n \n \n 6 | \n \n \n - | \n \n \n 5 | \n \n \n 9 | \n \n \n 14 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \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 28 | \n \n \n 208 | \n \n \n 237 | \n \n \n - | \n \n \n 233 | \n \n \n - | \n \n \n 233 | \n
Changes in accounting policies due to IFRS 17 adoption in 2023 were applied retrospectively where practicable. Aegon found the full retrospective approach impracticable when it required hindsight, such as setting historical assumptions, or when historical data was unavailable without significant effort.
If retrospective application was impracticable, the modified retrospective approach or the fair value approach was used. The\u00a0modified retrospective approach was applied only if reasonable and supportable information was available. For groups of\u00a0contracts eligible for both approaches, the most appropriate method was chosen based on operational and financial considerations.
Aegon applied the fair value approach to certain groups of contracts with direct participation 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 loss, reinsurance contracts, and groups to which the risk mitigation option 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, excluding 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.
To estimate the fair value of insurance contracts for IFRS 17 transition, Aegon adjusted estimated future cash flows for\u00a0known\u00a0differences between IFRS 17 and market valuation methodologies, such as investment expenses for all product types. The\u00a0risk adjustment was recalculated at a higher confidence level to reflect additional compensation required by market participants for financial risk and remaining contractual services. Where possible, the results were compared to market-observable transactions, such as recent reinsurance transactions entered into by Aegon and sales transactions of\u00a0insurance portfolios and businesses.
For contracts that transitioned to IFRS 17 under the fair value approach, assessments were performed at the original contract inception date, with a limited number of products being assessed at the transition date. It was assessed whether an insurance contract met the definition of an insurance contract with direct participation features or that of an investment contract with DPF, and the discretionary cash flows for insurance contracts without DPF.
At the transition date, contracts under the fair value approach were grouped into portfolios in accordance with IFRS 9 and IFRS 17. No contracts were deemed onerous at transition and these portfolios were not further segmented into cohorts based\u00a0on issue date.
Discount rates used to accrue interest to the contractual service margin and to recognize changes in non-financial assumptions for non-participating contracts were also set at the transition date.
\nThe modified retrospective approach aims to achieve results closest to the full retrospective approach, using reasonable, supportable information without undue cost or effort. Aegon used this approach for groups of contracts for which the fair value approach was not preferred, and gathered the necessary information from the transition date back to the initial recognition date. Modifications were applied only when information could not be obtained without undue effort, as allowed under IFRS 17.
For all contracts transitioned under this approach, sufficient information was available to classify them as of their original inception date. Contracts were grouped by the original inception date or, if information was lacking, by the transition date, into\u00a0cohorts of no more 12 months.
None of the contracts to which the modified retrospective approach was applied was identified as being onerous at inception.
\nTo determine the contractual service margin at transition for non-participating contracts, Aegon estimated the contractual service margin at the original inception date and then rolled it forward to the transition date, deducting the estimated amount that would have been released for services provided prior to transition.
Previous calendar-year cash flows were attributed to issue year cohorts using allocation keys based on available information, such as accumulated premiums in force and first-year account values.
Calculating fulfillment cash flows at inception and accruing interest to the contractual service margin required historical discount rates. Principally, Aegon determines IFRS 17 discount rates using a hybrid approach based on risk-free rates plus an\u00a0illiquidity premium based on expected asset returns. If asset portfolio data were unavailable, an observable yield curve plus a spread adjustment was used. For cohorts that exceed 12 months, weighted-average historical discount rates were applied, based on sales volumes, or 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 participation features,\u00a0Aegon first estimated the total contractual service margin for all services to be provided for that group of contracts. Then\u00a0deducted the estimated amount that would have been released for services provided prior to the transition date.
The total contractual service margin was estimated by taking the fair value of the underlying items at the transition date, minus\u00a0the fulfillment cash flows at that date, and adjusting it for the amounts charged to policyholders prior to the transition date, the\u00a0excess 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 suitable for the cash flow types, based on available information (e.g. account value, excess claims paid and net amount at risk). The projected risk adjustment pattern for newly issued cohorts of similar products was used as a proxy for estimating changes in the risk adjustment for non-financial risk before the transition date.
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 non-participating contracts issued in the Americas and Asia. The amount recognized in OCI has been determined retrospectively where possible, or set to nil at the transition date, such as for fixed deferred annuities, indexed universal life and other life insurance products with indirect participation features issued in the Americas.
\nOn transition to IFRS 17, amounts were recognized in the revaluation reserve for insurance contracts, investment contracts with DPF 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\u00a0table below presents the movement\u00a0in the cumulative amount recognized in OCI for these assets.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n \n \n (2,131) \n | \n \n \n \n \n (1,147) \n | \n
| \n \n Gross revaluation | \n \n \n 1,090 | \n \n \n \n \n (1,125) \n | \n
| \n \n Net gains/(losses) transferred to income statement | \n \n \n 53 | \n \n \n \n \n (62) \n | \n
| \n \n Foreign currency translation differences | \n \n \n 216 | \n \n \n \n \n (115) \n | \n
| \n \n Tax effect | \n \n \n \n \n (271) \n | \n \n \n 233 | \n
| \n \n Other | \n \n \n 46 | \n \n \n 86 | \n
| \n \n On December 31 | \n \n \n \n \n (997) \n | \n \n \n \n \n (2,131) \n | \n
Of the gross revaluation, EUR 1,159 million was unrealized gain through equity (2024: loss of EUR 1,073 million). The Net gains/(losses) transferred to the income statement include a gain of EUR 174 million due to transfer/ disposal (2024: gain of\u00a0EUR 56 million).
\nThe fulfillment cash flows include estimates of future cash flows, an adjustment to reflect time value of money and the\u00a0financial risks not included in the estimates of future cash flows and a risk adjustment for non-financial risk.
Measuring each abovementioned element requires significant judgment and estimates.
\nAegon aims to estimate future cash flows by considering a range of likely scenarios, each specifying the amount and timing of\u00a0cash flows and the probability of the outcomes. These cash flows are probability-weighted and discounted to derive an expected present value.
The objective is to use all reasonable, supportable information available at no undue cost or effort, rather than identifying every possible scenario. Simple modeling may be sufficient for some cases, while more complex methods might be needed for others. For example, if cash flows involve interrelated (implicit or explicit) options and respond nonlinearly to economic changes, Aegon often uses stochastic modeling techniques to estimate expected present values and project future cash flows across various economic scenarios. Other methods include closed-form solutions and replicating portfolio techniques.
\nWhen estimating future cash flows, Aegon sets actuarial assumptions for underwriting risk including policy claims (e.g.\u00a0mortality, longevity, or morbidity), policyholder behavior (e.g. lapses, surrender of policies or partial withdrawals), and property\u00a0& casualty loss ratios and expenses. These assumptions are reviewed annually, except for expense assumptions, which may be updated more frequently during quarterly expense monitoring.
\nMortality tables are developed using a blend of company experience and industry studies, considering product characteristics, own-risk selection criteria, target market, and historical experience. Mortality experience is regularly monitored and used to price new products and calculate liabilities for in-force contracts. For contracts that insure against survivorship or mortality, allowances are made for further longevity or mortality improvements. Morbidity assumptions are based on claims severity and frequency, adjusted for industry information, with industry surveys used for judgment-based assumptions such as morbidity improvement and long-term care (LTC) inflation.
Surrender and lapse rates depend on product features, policy duration, and external factors like interest rates and competitor behavior. Dynamic lapse assumptions reflect expected policyholder behavior under various scenarios. Assumptions are based on own experience and industry data, with lapse experience correlated to mortality and morbidity levels, as higher or lower levels of surrenders may indicate future claims will be higher or\u00a0lower than anticipated. Such correlations are accounted for in the mortality and morbidity assumptions.
Policyholder benefits linked to asset performance are projected at rates consistent with the discount rates applied. Crediting\u00a0rates for cash flows are determined using projected cash flows based on the group\u2019s crediting policies. Other\u00a0management actions are considered 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 business, actuarial assumptions for loss ratios impact fulfillment cash flows only for onerous contracts with remaining coverage and for contracts with incurred claims. Aegon uses various loss reserving techniques, historical claims data, and market inputs to estimate claims ratios, with\u00a0large claims assessed individually.
\nExpenses attributable to the fulfillment cash flows include acquisition, maintenance, and claims settlement costs, as well as unavoidable\u00a0 overhead costs. Investment expenses are included for contracts providing investment-related or investment-return services, or where Aegon\u2019s investment activities enhance policyholder benefits from insurance coverage. Aegon\u2019s expense assumptions are based on current 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\u00a0smaller units, further adjustments are made to reflect the long-term scale of the business.\u00a0When allocating the attributable expenses to groups of contracts, Aegon uses pricing or regulatory reporting approaches. Additional allocation keys are applied where IFRS requires more granularity.
\nThe expense inflation assumption is split into a\u00a0financial component calibrated to market observables and a non-financial component set as an actuarial assumption. The non-financial component represents the difference between general market inflation and Aegon-specific expense inflation. Some inflation assumptions (such as LTC utilization and health inflation in the\u00a0Americas) are entirely set as an actuarial assumption due to their weak correlation with general inflation indices and due to the lack of a hedge market for such rates.
\nAegon adjusts the estimated future cash flows to reflect the time value of money and the financial risks not included in the\u00a0cash flow estimates. The\u00a0discount rates applied to the estimates of the future cash flows reflects the characteristics of the cash flows and the liquidity characteristics of the\u00a0insurance contracts. They are consistent with observable market prices for financial instruments with similar cash flow characteristics. They exclude factors that influence market prices but do not impact the future cash flows of the insurance 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.
At initial recognition of a group of contracts, Aegon uses weighted-average discount rates over the period when contracts in\u00a0that group are issued.
IFRS explicitly mentions two calibration options for the discount rate, namely the \"top-down approach\" and the \"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 additional spread an investor can\u00a0earn by investing in a security that offers limited or no ability for the investor to exit the investment before 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.
\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\u00a0credit 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 are available, and then extrapolating the yield curve beyond market-observable maturities. Discount rates converge to an ultimate forward rate (linear grading over a 10-year period is assumed for the USD and EUR). A uniform last liquid point for EUR and USD is set at 30\u00a0years, while GBP is set at 50 years. The ultimate forward rates reflect a long-term view on nominal interest rates and are set by management for each currency, taking into account expected real interest rates and long-term inflation, together with the current market environment. The current ultimate forward rate assumption is 3.40% (December 31, 2024: 3.40%).
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.
| \n | \n\n \n December 31, 2025 | \n \n \n December 31, 2024 | \n ||||||||||
| \n \n \n \n Risk-free yield curves (%) \n | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n
| \n \n GBP | \n \n \n 3.54 | \n \n \n 3.67 | \n \n \n 4.04 | \n \n \n 4.36 | \n \n \n 4.54 | \n \n \n 4.59 | \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 3.48 | \n \n \n 3.77 | \n \n \n 4.28 | \n \n \n 4.84 | \n \n \n 5.16 | \n \n \n 5.00 | \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
Aegon sets ILPs at the level of the segment or major business unit, reflecting how it manages the investments and ALM risk for\u00a0the given block of liabilities. For Americas, Aegon has set ILPs by lines of business, which has resulted in 11 ILP curves. For\u00a0each unit, an ILP curve is constructed from market-observables returns on a reference portfolio of assets. The\u00a0reference 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).
To derive ILP curves, market spreads are adjusted for expected and unexpected default losses, and the ILP is calculated as the\u00a0weighted average of these adjusted spreads, using the line of business reference portfolio. The full ILP curve is derived by\u00a0interpolating between the observable tenors and then extrapolating the yield linearly beyond the ILP last liquid point to the\u00a0ultimate forward ILP. The last liquid point can be set separately for each duration bucket or, as a single point in time for the\u00a0entire 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 derived from historical default data, plus an adjustment for the 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 management's judgment.
Aegon updates the reference portfolio quarterly, and the ILP last liquid point and ILP ultimate forward rate are revised accordingly. The ILP curves of Aegon's significant portfolios 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 December 31, 2025 | \n \n \n December 31, 2024 | \n ||||||||||
| \n \n \n \n ILP per portfolio (%) \n | \n \n \n Country | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n \n \n 1 | \n \n \n 5 | \n \n \n 10 | \n \n \n 15 | \n \n \n 20 | \n \n \n 30 | \n
| \n \n Fixed Deferred Annuity | \n \n \n US | \n \n \n 0.92 | \n \n \n 0.99 | \n \n \n 1.06 | \n \n \n 1.15 | \n \n \n 1.16 | \n \n \n 1.16 | \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 1.01 | \n \n \n 1.07 | \n \n \n 1.13 | \n \n \n 1.19 | \n \n \n 1.19 | \n \n \n 1.20 | \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 0.82 | \n \n \n 0.83 | \n \n \n 0.84 | \n \n \n 1.06 | \n \n \n 1.14 | \n \n \n 1.31 | \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 0.91 | \n \n \n 0.94 | \n \n \n 0.96 | \n \n \n 1.11 | \n \n \n 1.17 | \n \n \n 1.28 | \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 0.85 | \n \n \n 0.88 | \n \n \n 0.91 | \n \n \n 1.07 | \n \n \n 1.13 | \n \n \n 1.27 | \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 0.36 | \n \n \n 0.51 | \n \n \n 0.64 | \n \n \n 0.64 | \n \n \n 0.63 | \n \n \n 0.65 | \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 0.76 | \n \n \n 0.76 | \n \n \n 0.76 | \n \n \n 0.76 | \n \n \n 0.76 | \n \n \n 0.72 | \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 0.45 | \n \n \n 0.45 | \n \n \n 0.45 | \n \n \n 0.45 | \n \n \n 0.45 | \n \n \n 0.44 | \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
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 arise from non-financial risk as it fulfils insurance contracts.
These risks 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 assumptions used to project future cash flows due to misestimation (parameter risk), and the risk of random fluctuations around the true estimates (contagion risk).
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 ceded reinsurance, and insurance contracts classified as held for sale.
Aegon generally applies a simplified confidence-interval technique to estimates the risk adjustment for non-financial risk, using an 80th percentile confidence level. Under this approach, a probability distribution is assumed for each particular risk, and the amount above the expected present value of future cash flows is determined using a shock factor. The\u00a0impacts 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\u00a075th percentile. Regardless of the technique applied, the confidence interval is computed across the entire product lifetime in\u00a0order to fully reflect the risk.
\nActuarial assumptions, excluding expenses, are reviewed in the second quarter for the United States and TLB, and in the fourth quarter for all other business units, while expense assumptions for all units are reviewed in the fourth quarter. These reviews are based on historical experience, observable market data, including transactions such as acquisitions and reinsurance, anticipated trends, and legislative changes. Similarly, the models and systems used to determine our liabilities and reinsurance assets are reviewed periodically and updated\u00a0as needed.
At the end of 2025, non-financial assumption changes mainly in Aegon\u2019s business in Americas, United Kingdom, and TLB resulted in an adverse pre-tax impact of EUR 515 million. Of this amount, EUR 265 million was absorbed by the CSM, EUR 177 million was recognized in the income statement, and EUR 73 million was recognized in OCI.
Of the total impact, Americas and TLB resulted in EUR 333 million, mainly due to strengthening of policyholder behavior assumptions to address adverse experience in Financial Assets, driven by the TLB Universal Life block reinsured to Transamerica, Variable Annuities and Fixed Annuities. In Protection Solutions, adverse assumption updates were driven by the workplace business, in part related to Medicare Supplement product addressing an industry-wide trend. These unfavorable underwriting assumptions was partly offset by favorable expense assumption updates in Individual Life. United Kingdom resulted in EUR 180 million, mainly from updated persistency assumptions, reflecting the ongoing commercial pressures in\u00a0the Platform and Traditional Products business.
Financial (economic) assumption updates resulted in a favorable impact of EUR 269 million, recognized in OCI, attributable to\u00a0a periodic adjustment of the illiquidity premium to align with Aegon\u2019s latest reinvestment strategy.
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 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 (excluded from insurance revenue); and the adjustment for non-performance risk that is applied to reinsurance contracts held.
\nOften, a single metric can be defined that captures multiple services under one contract. Aegon uses\u00a0different approaches to assess the relative weights of services benefits. In some cases, the weighting is\u00a0determined directly from the composition of the benefits under the contract. For example, for a life insurance product with an account value that is 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 which are the amounts repayable to policyholders, 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, the partial withdrawal, or the transfer of an insurance policy to another insurer. The investment component is determined net of any penalty or similar charges.
\nThe reinsurer's\u00a0nonperformance risk is based on Aegon\u2019s credit exposure, net of collateral, and the perceived counterparty default risk. In assessing credit exposure, Aegon takes into account treaty provisions for non-performance, such as the automatic recapture of the reinsured business on the reinsurer's default.
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\u00a0significantly on how actual claims experience compares with the assumptions used to price products and establish liabilities. If actual claims are less favorable than assumed, income would decrease. If higher claims become a persistent trend, Aegon may need to adjust its assumptions about future claims, increasing required reserves and reducing income.\u00a0In 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 if recoverability is doubtful. This could have a materially adverse effect on Aegon\u2019s business, results of operations and financial condition.
Sources of underwriting risk include policyholder behavior, policy\u00a0claims 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 assumed beforehand by management and that were priced into\u00a0the products.
Aegon monitors and manages its underwriting risk by its type, by performing attribution analysis on earnings and reserve movements to identify the source of any material variation between actual results and expectations. Aegon\u2019s units also conduct experience studies for underwriting risk assumptions, comparing Aegon\u2019s experience to industry experience as\u00a0well\u00a0as 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 to adjust them, with a view to maintaining a balance between policyholder and shareholder interests. Aegon can also reduce expense levels over time, thereby mitigating unfavorable expense variability.
Another way to mitigate underwriting risk is through reinsurance. Aegon uses reinsurance primarily to manage and diversify risk, limit volatility, improve capital positions, limit maximum losses and gain access to reinsurer support. While objectives and use may vary by region due to local market conditions and product offerings, the use of reinsurance is coordinated and monitored globally.\u00a0External reinsurance counterparties are, in general, major global reinsurers. At the same time, local reinsurers are used to balance local capacity and diversification.
The key areas where reinsurance is used are to reduce our exposure to mortality and morbidity risk, primarily through a\u00a0combination of quota-share and excess of loss reinsurance. Also, an excess-of-loss reinsurance is used to limit the\u00a0Group's\u00a0exposure to\u00a0large losses in the non-life business.
In order to minimize its reinsurer default exposure, Aegon regularly monitors the creditworthiness of its reinsurers, and\u00a0where\u00a0appropriate, arranges additional protection through letters of credit, trust agreements and over-collateralization. For\u00a0certain\u00a0agreements, funds are withheld for investment rather than relying on the reinsurer to meet investment expectations. Default\u00a0exposure is further reduced by using multiple reinsurers within certain reinsurance agreements.
Concentration of underwriting risk by segments can be referred to in note 5 Segment information.
\nAegon's best estimate assumptions already account for expected future developments, and the sensitivities reflect the\u00a0estimated effects of these assumptions by considering probable changes in lapse, mortality, and morbidity rates. These\u00a0sensitivities were applied as a permanent shock to all Aegon 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\u00a0not onerous, but are reflected in the net result if it is onerous, it is possible that the results of opposite sensitivities seem counterintuitive.
In 2025, changes in sensitivities were driven by the reinsurance of a block of Secondary Guarantee Universal Life (SGUL) contracts and by the annual assumption updates. Market movements, as well as changes in business mix from new business and exits, also influenced the sensitivities.
The SGUL reinsurance reduced the exposure to increases in mortality and decreases in lapses for contracts without direct participation. For these contracts, the impact of sensitivities on the consequential Reinsurance Loss Recovery Calculation is floored for lapse\u2011up and mortality\u2011down scenarios, contributing to the asymmetric results observed for mortality and lapse sensitivities.
Assumption updates for the workplace health business reduced overall morbidity sensitivities for contracts without direct participation. These updates also resulted in certain workplace health cohorts becoming onerous, which lowered the CSM sensitivities while increasing the sensitivities of the net result. Updated lapse assumptions for Individual Life contracts in the Protection Solutions business increased the exposure to lapse and mortality sensitivities for contracts without direct participation, affecting the CSM. There were also decreases in lapse sensitivities for other without direct participation contracts arose from an increase in onerous contracts within the Life portfolio of the Protection Solutions business, affecting the net result rather than the CSM.
For direct participation contracts in the US, overall lapse sensitivities increased due to positive market movements. Changes in the mix of onerous and non\u2011onerous blocks, driven by market movements for investment only Variable Annuities that became non\u2011onerous, and by assumption updates for certain Living Benefits blocks that became onerous, also shifted the impact of sensitivities between the net result and the CSM. Updates to persistency assumptions in the UK reduced the sensitivity to lapse rates for direct participation contracts.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||||||||
| \n | \n\n \n Net result | \n \n \n Equity | \n \n \n CSM | \n \n \n Net result | \n \n \n Equity | \n \n \n CSM | \n ||||||
| \n \n Estimated effect | \n \n \n Gross | \n \n \n Net | \n \n \n Gross | \n \n \n Net | \n \n \n Gross | \n \n \n Net | \n \n \n Gross | \n \n \n Net | \n \n \n Gross | \n \n \n Net | \n \n \n Gross | \n \n \n Net | \n
| \n \n Non-participating 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 20% increase in lapse rates | \n \n \n \n \n (79) \n | \n \n \n \n \n (48) \n | \n \n \n \n \n (62) \n | \n \n \n \n \n (33) \n | \n \n \n 78 | \n \n \n 69 | \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 21 | \n \n \n \n \n (13) \n | \n \n \n 6 | \n \n \n \n \n (25) \n | \n \n \n 37 | \n \n \n 38 | \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 (667) \n | \n \n \n \n \n (273) \n | \n \n \n \n \n (603) \n | \n \n \n \n \n (233) \n | \n \n \n 244 | \n \n \n 215 | \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 531 | \n \n \n 181 | \n \n \n 467 | \n \n \n 141 | \n \n \n \n \n (109) \n | \n \n \n \n \n (119) \n | \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 (230) \n | \n \n \n \n \n (225) \n | \n \n \n \n \n (235) \n | \n \n \n \n \n (222) \n | \n \n \n \n \n (659) \n | \n \n \n \n \n (585) \n | \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 87 | \n \n \n 84 | \n \n \n 102 | \n \n \n 89 | \n \n \n 878 | \n \n \n 796 | \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 (59) \n | \n \n \n \n \n (59) \n | \n \n \n \n \n (56) \n | \n \n \n \n \n (56) \n | \n \n \n \n \n (71) \n | \n \n \n \n \n (71) \n | \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 37 | \n \n \n 37 | \n \n \n 34 | \n \n \n 34 | \n \n \n 99 | \n \n \n 99 | \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 Participating 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 20% increase in lapse rates | \n \n \n 138 | \n \n \n 65 | \n \n \n 45 | \n \n \n 21 | \n \n \n \n \n (329) \n | \n \n \n \n \n (458) \n | \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 (181) \n | \n \n \n 52 | \n \n \n \n \n (76) \n | \n \n \n 91 | \n \n \n 427 | \n \n \n 417 | \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 (269) \n | \n \n \n \n \n (100) \n | \n \n \n \n \n (191) \n | \n \n \n \n \n (24) \n | \n \n \n \n \n (573) \n | \n \n \n \n \n (384) \n | \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 226 | \n \n \n 155 | \n \n \n 149 | \n \n \n 76 | \n \n \n 624 | \n \n \n 320 | \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 \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \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 \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 \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \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 \n \n (2) \n | \n \n \n 2 | \n \n \n 2 | \n
| \n \n 5% increase in expenses | \n \n \n \n \n (38) \n | \n \n \n \n \n (34) \n | \n \n \n \n \n (18) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (221) \n | \n \n \n \n \n (218) \n | \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 33 | \n \n \n 17 | \n \n \n 17 | \n \n \n 223 | \n \n \n 219 | \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\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 (4) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n - | \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 4 | \n \n \n 7 | \n \n \n 5 | \n \n \n - | \n \n \n - | \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 the fulfillment value of products with direct participation features (for example variable annuity products issued in the Americas and UK) in the profit or loss and OCI, rather than adjusting the CSM. The adjustment to the CSM that would otherwise have\u00a0been made on December 31, 2025, is EUR\u00a0836 million (2024: EUR 2,020 million). For more details on\u00a0the change in the fulfillment cash flows relating to the\u00a0hedged position, see note 20 Derivatives, and for the split between profit or loss and OCI, see note 9 Insurance net investment result.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInsuranceContractsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22232m14185p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 expenses | \n \n \n \n \n (7,601) \n | \n \n \n \n \n (30) \n | \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 Experience adjustments on incurred claims | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n \n \n (1,127) \n | \n \n \n \n \n (2) \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 Amortization of acquisition cash flows | \n \n \n \n \n (538) \n | \n \n \n - | \n \n \n \n \n (553) \n | \n \n \n - | \n \n \n \n \n (558) \n | \n \n \n - | \n
| \n \n Contracts measured under Non-PAA | \n \n \n \n \n (9,267) \n | \n \n \n \n \n (32) \n | \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 Contracts measured under the PAA | \n \n \n \n \n (123) \n | \n \n \n - | \n \n \n \n \n (118) \n | \n \n \n - | \n \n \n \n \n (132) \n | \n \n \n - | \n
| \n \n Total Insurance service expenses | \n \n \n \n \n (9,391) \n | \n \n \n \n \n (32) \n | \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 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Assumption changes that adjust underlying onerous contracts | \n \n \n 33 | \n \n \n 56 | \n \n \n 31 | \n
| \n \n Experience adjustments that adjust underlying onerous contracts | \n \n \n 586 | \n \n \n 398 | \n \n \n 516 | \n
| \n \n CSM recognized for service received | \n \n \n \n \n (11) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (26) \n | \n
| \n \n Release of risk adjustment | \n \n \n \n \n (72) \n | \n \n \n \n \n (83) \n | \n \n \n \n \n (118) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 300 | \n \n \n \n \n (36) \n | \n \n \n \n \n (217) \n | \n
| \n \n Experience adjustments on incurred claims | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (2) \n | \n
| \n \n New reinsurance contracts issued/acquired | \n \n \n 1 | \n \n \n 1 | \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 Establishing of loss recovery component from onerous underlying contracts | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n Reversals of loss recovery component from onerous underlying contracts | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (3) \n | \n
| \n \n Contracts measured under Non-PAA | \n \n \n 837 | \n \n \n 325 | \n \n \n 181 | \n
| \n \n Contracts measured under the PAA | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 1 | \n
| \n \n Net income / (expenses) on reinsurance held | \n \n \n 836 | \n \n \n 325 | \n \n \n 182 | \n
| \n \n Insurance contracts without direct participation | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 (107) \n | \n \n \n \n \n (103) \n | \n \n \n \n \n (77) \n | \n
| \n \n Loans | \n \n \n 57 | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \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 9 | \n \n \n 3 | \n \n \n 37 | \n
| \n \n Impairment (losses) / reversals on non-financial assets and receivables | \n \n \n \n \n (5) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (31) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (46) \n | \n \n \n \n \n (190) \n | \n \n \n \n \n (86) \n | \n
Impairment losses in 2025 decreased by EUR 144 million to EUR 46 million mainly due to lower expected credit loss (ECL) balance in Aegon US for mortgages following more favorable economic scenario output and real estate occupancy rates.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 (21) \n | \n \n \n \n \n (40) \n | \n \n \n \n \n (4) \n | \n
| \n \n Impairment (losses) / reversals on non-financial assets and receivables | \n \n \n \n \n (1) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (29) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (22) \n | \n \n \n \n \n (47) \n | \n \n \n \n \n (33) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Interest charges | \n \n | \n\n | \n\n | \n
| \n \n - Subordinated loans | \n \n \n \n \n (82) \n | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n
| \n \n - Trust pass-through securities | \n \n \n \n \n (8) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n - Borrowings | \n \n \n \n \n (88) \n | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (178) \n | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 \n \n (6,258) \n | \n \n \n - | \n \n \n \n \n (6,520) \n | \n \n \n - | \n \n \n \n \n (6,965) \n | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n \n \n (1,132) \n | \n \n \n - | \n \n \n \n \n (1,111) \n | \n \n \n - | \n \n \n \n \n (1,081) \n | \n \n \n - | \n
| \n \n Commissions | \n \n \n \n \n (1,533) \n | \n \n \n \n \n (928) \n | \n \n \n \n \n (1,449) \n | \n \n \n \n \n (937) \n | \n \n \n \n \n (1,403) \n | \n \n \n \n \n (1,069) \n | \n
| \n \n Handling and clearing fees | \n \n \n - | \n \n \n \n \n (27) \n | \n \n \n - | \n \n \n \n \n (30) \n | \n \n \n - | \n \n \n \n \n (32) \n | \n
| \n \n Right-of-use assets \u2013 interest expense | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n
| \n \n Employee expenses | \n \n \n \n \n (567) \n | \n \n \n \n \n (1,285) \n | \n \n \n \n \n (620) \n | \n \n \n \n \n (1,198) \n | \n \n \n \n \n (604) \n | \n \n \n \n \n (1,107) \n | \n
| \n \n Administration expenses | \n \n \n \n \n (523) \n | \n \n \n \n \n (684) \n | \n \n \n \n \n (500) \n | \n \n \n \n \n (785) \n | \n \n \n \n \n (551) \n | \n \n \n \n \n (780) \n | \n
| \n \n Deferred transaction expenses | \n \n \n - | \n \n \n 43 | \n \n \n - | \n \n \n 35 | \n \n \n - | \n \n \n 29 | \n
| \n \n Amortization of deferred expenses | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n - | \n \n \n \n \n (22) \n | \n \n \n - | \n \n \n \n \n (21) \n | \n
| \n \n Amortization of other intangibles | \n \n \n - | \n \n \n \n \n (18) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n \n \n (13) \n | \n
| \n \n Total | \n \n \n \n \n (10,012) \n | \n \n \n \n \n (2,928) \n | \n \n \n \n \n (10,200) \n | \n \n \n \n \n (2,961) \n | \n \n \n \n \n (10,604) \n | \n \n \n \n \n (3,000) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts attributed to acquisition cash flows | \n \n \n 1,151 | \n \n | \n\n \n 983 | \n \n \n - | \n \n \n 956 | \n \n \n - | \n
| \n \n Amortization of acquisition cash flows | \n \n \n \n \n (538) \n | \n \n | \n\n \n \n \n (553) \n | \n \n \n - | \n \n \n \n \n (558) \n | \n \n \n - | \n
| \n \n Amortization of acquisition cash flows PAA | \n \n \n \n \n (24) \n | \n \n | \n\n \n \n \n (20) \n | \n \n \n - | \n \n \n \n \n (19) \n | \n \n \n - | \n
| \n \n Total other operating expenses | \n \n \n \n \n (9,423) \n | \n \n \n \n \n (2,928) \n | \n \n \n \n \n (9,790) \n | \n \n \n \n \n (2,961) \n | \n \n \n \n \n (10,226) \n | \n \n \n \n \n (3,000) \n | \n
| \n \n Employee expenses | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Salaries | \n \n \n \n \n (1,189) \n | \n \n \n \n \n (1,205) \n | \n \n \n \n \n (1,131) \n | \n
| \n \n Post-employment benefit costs | \n \n \n \n \n (133) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (125) \n | \n
| \n \n Social security charges | \n \n \n \n \n (119) \n | \n \n \n \n \n (118) \n | \n \n \n \n \n (107) \n | \n
| \n \n Other personnel costs | \n \n \n \n \n (352) \n | \n \n \n \n \n (310) \n | \n \n \n \n \n (294) \n | \n
| \n \n Shares | \n \n \n \n \n (59) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (54) \n | \n
| \n \n Total | \n \n \n \n \n (1,852) \n | \n \n \n \n \n (1,818) \n | \n \n \n \n \n (1,711) \n | \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 \n \n (61) \n | \n \n \n \n \n (61) \n | \n \n \n \n \n (57) \n | \n
Other operating expenses that arise directly from or can be allocated to the fulfillment of insurance contracts or investment contracts with discretionary participation 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 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Other income | \n \n \n 137 | \n \n \n 153 | \n \n \n 35 | \n
| \n \n Other charges | \n \n \n \n \n (6) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (92) \n | \n
| \n \n For the year ended December 31 | \n \n \n 130 | \n \n \n 145 | \n \n \n \n \n (57) \n | \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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23909m14241p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Assumption changes that adjust underlying onerous contracts | \n \n \n 33 | \n \n \n 56 | \n \n \n 31 | \n
| \n \n Experience adjustments that adjust underlying onerous contracts | \n \n \n 586 | \n \n \n 398 | \n \n \n 516 | \n
| \n \n CSM recognized for service received | \n \n \n \n \n (11) \n | \n \n \n \n \n (14) \n | \n \n \n \n \n (26) \n | \n
| \n \n Release of risk adjustment | \n \n \n \n \n (72) \n | \n \n \n \n \n (83) \n | \n \n \n \n \n (118) \n | \n
| \n \n Experience adjustments on current service | \n \n \n 300 | \n \n \n \n \n (36) \n | \n \n \n \n \n (217) \n | \n
| \n \n Experience adjustments on incurred claims | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (2) \n | \n
| \n \n New reinsurance contracts issued/acquired | \n \n \n 1 | \n \n \n 1 | \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 Establishing of loss recovery component from onerous underlying contracts | \n \n \n - | \n \n \n - | \n \n \n 7 | \n
| \n \n Reversals of loss recovery component from onerous underlying contracts | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (3) \n | \n
| \n \n Contracts measured under Non-PAA | \n \n \n 837 | \n \n \n 325 | \n \n \n 181 | \n
| \n \n Contracts measured under the PAA | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n 1 | \n
| \n \n Net income / (expenses) on reinsurance held | \n \n \n 836 | \n \n \n 325 | \n \n \n 182 | \n
The table below presents the asset and liability balances of insurance contracts and reinsurance contracts held, by measurement model. This includes contracts measured under Premium allocation approach (PAA) and contracts measured under the General model and Variable fee approach (i.e. Non-PAA).
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n \n By measurement model | \n \n \n Non-PAA | \n \n \n PAA | \n \n \n Total | \n \n \n Non-PAA | \n \n \n PAA | \n \n \n Total | \n
| \n \n Insurance contract assets | \n \n \n 18 | \n \n \n - | \n \n \n 18 | \n \n \n 125 | \n \n \n - | \n \n \n 125 | \n
| \n \n Insurance contract liabilities | \n \n \n 176,024 | \n \n \n 44 | \n \n \n 176,067 | \n \n \n 188,318 | \n \n \n 41 | \n \n \n 188,359 | \n
| \n \n Insurance contracts net balance | \n \n \n 176,006 | \n \n \n 44 | \n \n \n 176,049 | \n \n \n 188,193 | \n \n \n 41 | \n \n \n 188,233 | \n
| \n \n Reinsurance contract assets | \n \n \n 17,146 | \n \n \n 8 | \n \n \n 17,153 | \n \n \n 16,015 | \n \n \n 7 | \n \n \n 16,021 | \n
| \n \n Reinsurance contract liabilities | \n \n \n 195 | \n \n \n - | \n \n \n 195 | \n \n \n 303 | \n \n \n - | \n \n \n 303 | \n
| \n \n Reinsurance contracts net balance | \n \n \n 16,950 | \n \n \n 8 | \n \n \n 16,958 | \n \n \n 15,712 | \n \n \n 7 | \n \n \n 15,719 | \n
All groups of investment contracts with discretionary participation features (DPF) were measured under Non-PAA and were in\u00a0a liability position at the reporting date and comparative period.
\nThe following tables present the reconciliation of the net carrying amounts of insurance contracts, reinsurance contracts held and investment contracts with DPF.
\nFor insurance contracts and investment contracts with DPF - Liability for remaining coverage excluding loss component (LFRC), Loss component (LC) and Liability for incurred claims (LFIC)
For reinsurance contracts held - Asset for remaining coverage excluding loss recovery component (AFRC), Loss recovery component (LRC) and Asset for incurred claims (AFIC)
| \n | \n\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n Reinsurance contracts (Non-PAA) - by type | \n \n \n AFRC | \n \n \n LRC | \n \n \n AFIC | \n \n \n Total | \n \n \n AFRC | \n \n \n LRC | \n \n \n AFIC | \n \n \n Total | \n
| \n \n Opening 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 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 2,011 | \n \n \n \n \n (1,270) \n | \n \n \n \n \n (439) \n | \n \n \n 303 | \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 | \n \n \n 13,954 | \n \n \n 1,745 | \n \n \n 13 | \n \n \n 15,712 | \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\n | \n\n | \n\n | \n
| \n \n Net expenses from reinsurance contracts | \n \n \n 308 | \n \n \n 254 | \n \n \n 275 | \n \n \n 837 | \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 613 | \n \n \n 69 | \n \n \n - | \n \n \n 681 | \n \n \n 41 | \n \n \n 19 | \n \n \n - | \n \n \n 61 | \n
| \n \n Effect of reinsurer default risk changes | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 2 | \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 profit or loss and OCI | \n \n \n 922 | \n \n \n 322 | \n \n \n 275 | \n \n \n 1,520 | \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\n | \n\n | \n\n | \n
| \n \n Cash flows | \n \n \n 2,443 | \n \n \n \n \n (166) \n | \n \n \n \n \n (597) \n | \n \n \n 1,680 | \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 Other movements | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 371 | \n \n \n \n \n (409) \n | \n \n \n 234 | \n \n \n 196 | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,761) \n | \n \n \n \n \n (211) \n | \n \n \n 10 | \n \n \n \n \n (1,961) \n | \n \n \n 908 | \n \n \n 103 | \n \n \n - | \n \n \n 1,011 | \n
| \n \n Net closing balance | \n \n \n 15,558 | \n \n \n 1,690 | \n \n \n \n \n (298) \n | \n \n \n 16,950 | \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 15,749 | \n \n \n 1,693 | \n \n \n \n \n (296) \n | \n \n \n 17,146 | \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 191 | \n \n \n 2 | \n \n \n 2 | \n \n \n 195 | \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
The following schedules presents the measurement components comprising the Best estimate liability (BEL), Risk adjustment (RA), and contractual Service Margin (CSM).
| \n | \n\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n Reinsurance contracts (Non-PAA) - by component | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n 15,374 | \n \n \n 433 | \n \n \n 208 | \n \n \n 16,015 | \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 693 | \n \n \n \n \n (361) \n | \n \n \n \n \n (29) \n | \n \n \n 303 | \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 | \n \n \n 14,681 | \n \n \n 794 | \n \n \n 237 | \n \n \n 15,712 | \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\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust CSM | \n \n \n \n \n (234) \n | \n \n \n \n \n (20) \n | \n \n \n 254 | \n \n \n - | \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 adjust underlying onerous contracts | \n \n \n 591 | \n \n \n 9 | \n \n \n 18 | \n \n \n 618 | \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 recognized | \n \n \n \n \n (200) \n | \n \n \n 60 | \n \n \n 141 | \n \n \n 1 | \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 157 | \n \n \n 50 | \n \n \n 413 | \n \n \n 620 | \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\n | \n\n | \n\n | \n
| \n \n CSM recognized for service received | \n \n \n - | \n \n \n - | \n \n \n \n \n (11) \n | \n \n \n \n \n (11) \n | \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 (72) \n | \n \n \n - | \n \n \n \n \n (72) \n | \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 300 | \n \n \n - | \n \n \n - | \n \n \n 300 | \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 300 | \n \n \n \n \n (72) \n | \n \n \n \n \n (11) \n | \n \n \n 217 | \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\n | \n\n | \n\n | \n
| \n \n Experience adjustment on incurred claims | \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 3 | \n
| \n \n Changes that relate to past service | \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 3 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Net income/ (expenses) on reinsurance held | \n \n \n 457 | \n \n \n \n \n (22) \n | \n \n \n 402 | \n \n \n 837 | \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\n | \n\n | \n
| \n \n \n \n Reinsurance finance income / (expenses) \n | \n \n \n 652 | \n \n \n 43 | \n \n \n \n \n (12) \n | \n \n \n 683 | \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\n | \n\n | \n\n | \n
| \n \n \n \n Premiums paid (net of commission) \n | \n \n \n 4,950 | \n \n \n - | \n \n \n - | \n \n \n 4,950 | \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 (3,270) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,270) \n | \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 \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 1,680 | \n \n \n - | \n \n \n - | \n \n \n 1,680 | \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\n | \n\n | \n\n | \n
| \n \n Reinsurance contracts disposed | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \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 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 207 | \n \n \n 5 | \n \n \n 14 | \n \n \n 226 | \n
| \n \n Other movements | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 143 | \n \n \n 5 | \n \n \n 48 | \n \n \n 196 | \n
| \n \n Net exchange difference | \n \n \n \n \n (1,826) \n | \n \n \n \n \n (94) \n | \n \n \n \n \n (42) \n | \n \n \n \n \n (1,961) \n | \n \n \n 949 | \n \n \n 50 | \n \n \n 12 | \n \n \n 1,011 | \n
| \n \n Net closing balance | \n \n \n 15,644 | \n \n \n 721 | \n \n \n 585 | \n \n \n 16,950 | \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 15,816 | \n \n \n 691 | \n \n \n 639 | \n \n \n 17,146 | \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 172 | \n \n \n \n \n (30) \n | \n \n \n 54 | \n \n \n 195 | \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 \n \n Reinsurance contracts (Non-PAA) \n | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Present value of cash inflows | \n \n \n 3,284 | \n \n \n 54 | \n
| \n \n Present value of cash outflows | \n \n \n \n \n (3,484) \n | \n \n \n \n \n (65) \n | \n
| \n \n Risk adjustment for non-financial risk | \n \n \n 60 | \n \n \n 4 | \n
| \n \n Contractual service margin | \n \n \n 141 | \n \n \n 8 | \n
| \n \n Gain / (Loss) recognized on initial recognition | \n \n \n 1 | \n \n \n 1 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Reinsurance contracts | \n ||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n <1 year | \n \n \n 864 | \n \n \n 922 | \n \n \n 37 | \n \n \n - | \n
| \n \n 1-2 years | \n \n \n 780 | \n \n \n 832 | \n \n \n 36 | \n \n \n 1 | \n
| \n \n 2-3 years | \n \n \n 705 | \n \n \n 752 | \n \n \n 35 | \n \n \n 4 | \n
| \n \n 3-4 years | \n \n \n 638 | \n \n \n 679 | \n \n \n 34 | \n \n \n 6 | \n
| \n \n 4-5 years | \n \n \n 577 | \n \n \n 614 | \n \n \n 34 | \n \n \n 7 | \n
| \n \n 5-10 years | \n \n \n 2,108 | \n \n \n 2,261 | \n \n \n 146 | \n \n \n 49 | \n
| \n \n 10-20 years | \n \n \n 1,856 | \n \n \n 2,009 | \n \n \n 172 | \n \n \n 106 | \n
| \n \n > 20 years | \n \n \n 879 | \n \n \n 896 | \n \n \n 91 | \n \n \n 63 | \n
| \n \n On December 31 | \n \n \n 8,406 | \n \n \n 8,964 | \n \n \n 585 | \n \n \n 237 | \n
| \n \n Insurance contracts without direct participation | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Debt securities and money market instruments | \n \n \n 2,211 | \n \n \n 2,233 | \n \n \n 2,166 | \n
| \n \n Loans | \n \n \n 421 | \n \n \n 428 | \n \n \n 433 | \n
| \n \n Other | \n \n \n 52 | \n \n \n 60 | \n \n \n 139 | \n
| \n \n For the year ended December 31 | \n \n \n 2,683 | \n \n \n 2,720 | \n \n \n 2,738 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \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 Non-derivative assets applying the fair value option | \n \n \n 234 | \n \n \n \n \n (10) \n | \n \n \n 133 | \n \n \n 357 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 258 | \n \n \n - | \n \n \n 258 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 234 | \n \n \n 248 | \n \n \n 133 | \n \n \n 615 | \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 For the year ended December 31, 2024 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \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 For the year ended December 31, 2023 | \n \n \n 231 | \n \n \n 369 | \n \n \n 137 | \n \n \n 737 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Debt securities and money market instruments | \n \n \n 557 | \n \n \n 484 | \n \n \n 457 | \n
| \n \n Other | \n \n \n 80 | \n \n \n 121 | \n \n \n 142 | \n
| \n \n For the year ended December 31 | \n \n \n 636 | \n \n \n 605 | \n \n \n 599 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 74 | \n \n \n 65 | \n \n \n 89 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n 15 | \n \n \n 13 | \n \n \n - | \n
| \n \n Non-derivative assets - PH designated | \n \n \n 129 | \n \n \n 108 | \n \n \n - | \n
| \n \n For the year ended December 31 | \n \n \n 217 | \n \n \n 186 | \n \n \n 89 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Interest charges | \n \n | \n\n | \n\n | \n
| \n \n - Subordinated loans | \n \n \n \n \n (82) \n | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n
| \n \n - Trust pass-through securities | \n \n \n \n \n (8) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n - Borrowings | \n \n \n \n \n (88) \n | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (178) \n | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n
| \n \n Insurance contracts without direct participation | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Debt securities and money market instruments | \n \n \n 2,211 | \n \n \n 2,233 | \n \n \n 2,166 | \n
| \n \n Loans | \n \n \n 421 | \n \n \n 428 | \n \n \n 433 | \n
| \n \n Other | \n \n \n 52 | \n \n \n 60 | \n \n \n 139 | \n
| \n \n For the year ended December 31 | \n \n \n 2,683 | \n \n \n 2,720 | \n \n \n 2,738 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \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 Non-derivative assets applying the fair value option | \n \n \n 234 | \n \n \n \n \n (10) \n | \n \n \n 133 | \n \n \n 357 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n - | \n \n \n 258 | \n \n \n - | \n \n \n 258 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 234 | \n \n \n 248 | \n \n \n 133 | \n \n \n 615 | \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 For the year ended December 31, 2024 | \n \n \n 197 | \n \n \n 308 | \n \n \n 132 | \n \n \n 637 | \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 For the year ended December 31, 2023 | \n \n \n 231 | \n \n \n 369 | \n \n \n 137 | \n \n \n 737 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Debt securities and money market instruments | \n \n \n 557 | \n \n \n 484 | \n \n \n 457 | \n
| \n \n Other | \n \n \n 80 | \n \n \n 121 | \n \n \n 142 | \n
| \n \n For the year ended December 31 | \n \n \n 636 | \n \n \n 605 | \n \n \n 599 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Non-derivative assets applying the fair value option | \n \n \n 74 | \n \n \n 65 | \n \n \n 89 | \n
| \n \n Non-derivative assets failing the SPPI criteria | \n \n \n 15 | \n \n \n 13 | \n \n \n - | \n
| \n \n Non-derivative assets - PH designated | \n \n \n 129 | \n \n \n 108 | \n \n \n - | \n
| \n \n For the year ended December 31 | \n \n \n 217 | \n \n \n 186 | \n \n \n 89 | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts with DPF | \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 Dividend income | \n \n \n 769 | \n \n \n 11 | \n \n \n 394 | \n \n \n 1,174 | \n
| \n \n Rental income | \n \n \n 16 | \n \n \n \n \n (1) \n | \n \n \n 10 | \n \n \n 25 | \n
| \n \n For the year ended December 31, 2025 | \n \n \n 785 | \n \n \n 10 | \n \n \n 403 | \n \n \n 1,198 | \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 For the year ended December 31, 2024 | \n \n \n 816 | \n \n \n 10 | \n \n \n 514 | \n \n \n 1,340 | \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 For the year ended December 31, 2023 | \n \n \n 845 | \n \n \n 11 | \n \n \n 427 | \n \n \n 1,283 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Dividend income | \n \n \n 819 | \n \n \n 724 | \n \n \n 547 | \n
| \n \n Rental income | \n \n \n 6 | \n \n \n 4 | \n \n \n 3 | \n
| \n \n For the year ended December 31 | \n \n \n 825 | \n \n \n 729 | \n \n \n 550 | \n
Aegon declared interim and final dividends on common shares and common share B for the years 2023 through 2025. The\u00a0dividend per common share, in EUR and USD, are presented in the following table. The interim and final dividends on\u00a0common share B, based on its financial rights, are 1/40th of a common share. Aegon distributes dividends in cash.
| \n | \n\n | \n\n \n EUR | \n \n \n USD | \n ||||
| \n \n Year | \n \n | \n\n \n Interim | \n \n \n Final | \n \n \n Total | \n \n \n Interim | \n \n \n Final | \n \n \n Total | \n
| \n \n 2025 | \n \n | \n\n \n 0.19 | \n \n \n 0.211 | \n \n \n 0.40 | \n \n \n 0.22 | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n 2024 | \n \n | \n\n \n 0.16 | \n \n \n 0.19 | \n \n \n 0.35 | \n \n \n 0.18 | \n \n \n 0.22 | \n \n \n 0.40 | \n
| \n \n 2023 | \n \n | \n\n \n 0.14 | \n \n \n 0.16 | \n \n \n 0.30 | \n \n \n 0.15 | \n \n \n 0.17 | \n \n \n 0.32 | \n
Aegon is subject to legal restrictions on the amount 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24381m14176p": { "value": "\n| \n \n Insurance contracts without direct participation | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 (107) \n | \n \n \n \n \n (103) \n | \n \n \n \n \n (77) \n | \n
| \n \n Loans | \n \n \n 57 | \n \n \n \n \n (88) \n | \n \n \n \n \n (15) \n | \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 9 | \n \n \n 3 | \n \n \n 37 | \n
| \n \n Impairment (losses) / reversals on non-financial assets and receivables | \n \n \n \n \n (5) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (31) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (46) \n | \n \n \n \n \n (190) \n | \n \n \n \n \n (86) \n | \n
Impairment losses in 2025 decreased by EUR 144 million to EUR 46 million mainly due to lower expected credit loss (ECL) balance in Aegon US for mortgages following more favorable economic scenario output and real estate occupancy rates.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 (21) \n | \n \n \n \n \n (40) \n | \n \n \n \n \n (4) \n | \n
| \n \n Impairment (losses) / reversals on non-financial assets and receivables | \n \n \n \n \n (1) \n | \n \n \n \n \n (7) \n | \n \n \n \n \n (29) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (22) \n | \n \n \n \n \n (47) \n | \n \n \n \n \n (33) \n | \n
The economic assumptions underlying all calculations are based on observable market data and projections of future trends. All cash-generating units tested showed that their recoverable amounts exceeded their carrying values, including goodwill. A\u00a0reasonably possible change in any key assumption is not expected to cause the carrying value of the cash-generating units to exceed their recoverable amount.
The goodwill balance has been allocated to the cash-generating units 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\u00a0recoverable amount of cash-generating unit is the higher of its value in use and its fair value less costs of disposal. The\u00a0operating 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 2025 | \n \n \n 2024 | \n
| \n \n Americas | \n \n \n 189 | \n \n \n 215 | \n
| \n \n United Kingdom | \n \n \n 79 | \n \n \n 81 | \n
| \n \n Asset Management | \n \n \n 45 | \n \n \n 49 | \n
| \n \n On December 31 | \n \n \n 313 | \n \n \n 345 | \n
Within the 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 (SPGAs). 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\u00a0market value of liabilities. The EAC is reflective of market conditions where a pre-tax benchmark discount rate ranged from\u00a0approximately 3.46% to 4.17% from the one-month to 30-year tenors.
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 future services. Based on the value-in-use tests, Transamerica\u2019s goodwill for the group of annuities cash-generating units (2025: EUR 121 million; 2024: EUR 137 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 (2025: EUR 68 million; 2024: EUR 77 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 Nationwide (Origen) goodwill and the Barrington Hamilton (Origen) goodwill, the cash-generating unit is Origen Financial Services Limited.
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\u00a01,375 million headroom.
For Nationwide (Origen) and Barrington Hamilton (Origen) goodwill, this relies on the underlying value in use calculation for Origen Financial Services limited (OFSL). The value-in-use calculation employs a standard model. The headroom at year-end was EUR\u00a0103\u00a0million for Nationwide and EUR 228 million for Barrington Hamilton.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24671m13986p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Interest charges | \n \n | \n\n | \n\n | \n
| \n \n - Subordinated loans | \n \n \n \n \n (82) \n | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n
| \n \n - Trust pass-through securities | \n \n \n \n \n (8) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n - Borrowings | \n \n \n \n \n (88) \n | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (178) \n | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Interest charges | \n \n | \n\n | \n\n | \n
| \n \n - Subordinated loans | \n \n \n \n \n (82) \n | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n
| \n \n - Trust pass-through securities | \n \n \n \n \n (8) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n - Borrowings | \n \n \n \n \n (88) \n | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (178) \n | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Interest charges | \n \n | \n\n | \n\n | \n
| \n \n - Subordinated loans | \n \n \n \n \n (82) \n | \n \n \n \n \n (99) \n | \n \n \n \n \n (115) \n | \n
| \n \n - Trust pass-through securities | \n \n \n \n \n (8) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (9) \n | \n
| \n \n - Borrowings | \n \n \n \n \n (88) \n | \n \n \n \n \n (82) \n | \n \n \n \n \n (58) \n | \n
| \n \n For the year ended December 31 | \n \n \n \n \n (178) \n | \n \n \n \n \n (190) \n | \n \n \n \n \n (182) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Fee from asset management and insurance distribution | \n \n \n 2,092 | \n \n \n 2,097 | \n \n \n 1,967 | \n
| \n \n Sales commission | \n \n \n 62 | \n \n \n 55 | \n \n \n 21 | \n
| \n \n Securities lending income | \n \n \n 1 | \n \n \n - | \n \n \n - | \n
| \n \n Other fee and commission income | \n \n \n 235 | \n \n \n 226 | \n \n \n 174 | \n
| \n \n For the year ended December 31 | \n \n \n 2,390 | \n \n \n 2,378 | \n \n \n 2,163 | \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 243 | \n \n \n 253 | \n \n \n 220 | \n
| \n \n Employee expenses | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Salaries | \n \n \n \n \n (1,189) \n | \n \n \n \n \n (1,205) \n | \n \n \n \n \n (1,131) \n | \n
| \n \n Post-employment benefit costs | \n \n \n \n \n (133) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (125) \n | \n
| \n \n Social security charges | \n \n \n \n \n (119) \n | \n \n \n \n \n (118) \n | \n \n \n \n \n (107) \n | \n
| \n \n Other personnel costs | \n \n \n \n \n (352) \n | \n \n \n \n \n (310) \n | \n \n \n \n \n (294) \n | \n
| \n \n Shares | \n \n \n \n \n (59) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (54) \n | \n
| \n \n Total | \n \n \n \n \n (1,852) \n | \n \n \n \n \n (1,818) \n | \n \n \n \n \n (1,711) \n | \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 \n \n (61) \n | \n \n \n \n \n (61) \n | \n \n \n \n \n (57) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Retirement benefit plans | \n \n \n 217 | \n \n \n 269 | \n
| \n \n Other post-employment benefit plans | \n \n \n 167 | \n \n \n 189 | \n
| \n \n Total defined benefit plans | \n \n \n 384 | \n \n \n 457 | \n
| \n | \n\n | \n\n | \n
| \n \n Retirement benefit plans in surplus | \n \n \n 95 | \n \n \n 110 | \n
| \n \n Reimbursement rights | \n \n \n 28 | \n \n \n 9 | \n
| \n \n Total defined benefit assets | \n \n \n 124 | \n \n \n 119 | \n
| \n | \n\n | \n\n | \n
| \n \n Retirement benefit plans in deficit | \n \n \n 340 | \n \n \n 388 | \n
| \n \n Other post-employment benefit plans in deficit | \n \n \n 167 | \n \n \n 189 | \n
| \n \n Total defined benefit liabilities | \n \n \n 507 | \n \n \n 576 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n \n Movements during the year | \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 269 | \n \n \n 189 | \n \n \n 457 | \n \n \n 368 | \n \n \n 178 | \n \n \n 546 | \n
| \n \n Defined benefit expenses | \n \n \n 45 | \n \n \n 15 | \n \n \n 61 | \n \n \n 42 | \n \n \n 15 | \n \n \n 57 | \n
| \n \n Remeasurements of defined benefit plans | \n \n \n \n \n (6) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (9) \n | \n \n \n 19 | \n \n \n \n \n (5) \n | \n \n \n 15 | \n
| \n \n Contributions paid | \n \n \n \n \n (44) \n | \n \n \n - | \n \n \n \n \n (44) \n | \n \n \n \n \n (148) \n | \n \n \n - | \n \n \n \n \n (148) \n | \n
| \n \n Benefits paid | \n \n \n \n \n (19) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (31) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (40) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (28) \n | \n \n \n \n \n (22) \n | \n \n \n \n \n (50) \n | \n \n \n 16 | \n \n \n 12 | \n \n \n 27 | \n
| \n \n On December 31 | \n \n \n 217 | \n \n \n 167 | \n \n \n 384 | \n \n \n 269 | \n \n \n 189 | \n \n \n 457 | \n
The amounts recognized in the statement of financial position are determined as follows:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n \n Net carrying value details | \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 funded obligations | \n \n \n 2,852 | \n \n \n - | \n \n \n 2,852 | \n \n \n 3,140 | \n \n \n - | \n \n \n 3,140 | \n
| \n \n Fair value of plan assets | \n \n \n \n \n (2,845) \n | \n \n \n - | \n \n \n \n \n (2,845) \n | \n \n \n \n \n (3,123) \n | \n \n \n - | \n \n \n \n \n (3,123) \n | \n
| \n \n Fair value of reimbursement rights | \n \n \n \n \n (28) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n \n \n (9) \n | \n
| \n | \n\n \n \n \n (22) \n | \n \n \n - | \n \n \n \n \n (22) \n | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \n
| \n \n Present value of unfunded obligations | \n \n \n 239 | \n \n \n 167 | \n \n \n 406 | \n \n \n 262 | \n \n \n 189 | \n \n \n 450 | \n
| \n \n On December 31 | \n \n \n 217 | \n \n \n 167 | \n \n \n 384 | \n \n \n 269 | \n \n \n 189 | \n \n \n 457 | \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 were nil in both 2025 and 2024.
| \n | \n\n \n 2025 | \n \n \n 2024 | \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 36 | \n \n \n 7 | \n \n \n 43 | \n \n \n 32 | \n \n \n 7 | \n \n \n 39 | \n
| \n \n \n \n Net interest on net defined benefit liability (asset) \n | \n \n \n 9 | \n \n \n 9 | \n \n \n 18 | \n \n \n 9 | \n \n \n 9 | \n \n \n 18 | \n
| \n \n Total defined benefit expenses | \n \n \n 45 | \n \n \n 15 | \n \n \n 61 | \n \n \n 42 | \n \n \n 15 | \n \n \n 57 | \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 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 3,590 | \n \n \n 3,616 | \n
| \n \n Current year service cost | \n \n \n 43 | \n \n \n 39 | \n
| \n \n Interest expenses | \n \n \n 177 | \n \n \n 173 | \n
| \n | \n\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 demographic assumptions | \n \n \n 21 | \n \n \n 6 | \n
| \n \n - Actuarial gains and losses arising from changes in financial assumptions | \n \n \n 14 | \n \n \n \n \n (217) \n | \n
| \n \n Benefits paid | \n \n \n \n \n (237) \n | \n \n \n \n \n (237) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (350) \n | \n \n \n 208 | \n
| \n \n Other | \n \n \n - | \n \n \n 2 | \n
| \n \n On December 31 | \n \n \n 3,257 | \n \n \n 3,590 | \n
| \n \n Movements during the year in plan assets for retirement benefit plans | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 3,123 | \n \n \n 3,051 | \n
| \n \n \n \n Interest income (based on discount rate) \n | \n \n \n 155 | \n \n \n 152 | \n
| \n \n \n \n Remeasurements of the net defined liability (asset) \n | \n \n \n 32 | \n \n \n \n \n (208) \n | \n
| \n \n Contributions by employer | \n \n \n 44 | \n \n \n 148 | \n
| \n \n Benefits paid | \n \n \n \n \n (210) \n | \n \n \n \n \n (200) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (299) \n | \n \n \n 180 | \n
| \n \n On December 31 | \n \n \n 2,845 | \n \n \n 3,123 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||||
| \n \n 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 702 | \n \n \n 198 | \n \n \n 900 | \n \n \n 32% | \n \n \n 594 | \n \n \n 275 | \n \n \n 869 | \n \n \n 28% | \n
| \n \n Derivatives | \n \n \n - | \n \n \n \n \n (30) \n | \n \n \n \n \n (30) \n | \n \n \n -1% | \n \n \n - | \n \n \n \n \n (183) \n | \n \n \n \n \n (183) \n | \n \n \n -6% | \n
| \n \n Investment funds | \n \n \n - | \n \n \n 1,625 | \n \n \n 1,625 | \n \n \n 57% | \n \n \n - | \n \n \n 2,027 | \n \n \n 2,027 | \n \n \n 65% | \n
| \n \n Other | \n \n \n - | \n \n \n 350 | \n \n \n 350 | \n \n \n 12% | \n \n \n - | \n \n \n 410 | \n \n \n 410 | \n \n \n 13% | \n
| \n \n On December 31 | \n \n \n 702 | \n \n \n 2,144 | \n \n \n 2,845 | \n \n \n 100% | \n \n \n 594 | \n \n \n 2,529 | \n \n \n 3,123 | \n \n \n 100% | \n
| \n \n Movements during the year of the fair value of the reimbursement rights | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 9 | \n \n \n 20 | \n
| \n \n Interest expenses | \n \n \n 3 | \n \n \n 3 | \n
| \n | \n\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 12 | \n \n \n \n \n (18) \n | \n
| \n \n Benefits paid | \n \n \n 4 | \n \n \n 4 | \n
| \n \n Other | \n \n \n - | \n \n \n 2 | \n
| \n \n On December 31 | \n \n \n 28 | \n \n \n 9 | \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 101 million on December 31, 2025 (2024: EUR 126 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 2025 or 2024. However, Transamerica Corporation made a pension plan contribution of EUR\u00a043 million in September, 2025 that was over and above the minimum required funding levels as set forth by the Internal Revenue Code. In 2024, Transamerica Corporation made a pension plan contribution of EUR 145 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 145 million (2024:\u00a0EUR\u00a0164\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 170 million (2024:\u00a0EUR\u00a0190 million).
The weighted average duration of the defined benefit obligation is 7.9 years (2024: 8.0\u00a0years).
The above sensitivity analysis is based on a change in one assumption, with all other assumptions held 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.
Target allocation of plan assets for retirement benefit plans for the next annual period is: equity instruments 2%-4%, debt\u00a0instruments 80%-90% and other instruments 8%-16%.
\nAegon UK operated a defined benefit pension scheme providing benefits for staff based on final pensionable salary and years\u00a0of\u00a0service. The scheme closed to new entrants several years ago and closed to future accruals 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\u00a0best 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 75 million on December 31, 2025 (2024: EUR 95 million surplus).\u00a0During 2025, no contributions were paid into the scheme (2024: EUR 10 million).
The investment strategy for the scheme is determined by the trustees in consultation with Aegon UK. Currently assets are invested in 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 interest 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, interest rate risks, investment returns, and changes in pensioners' life expectancy.
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 have been included in the funded position as\u00a0at\u00a0December 31, 2025.
The weighted average duration of the defined benefit obligation is 12.6 years (2024: 13.5 years).
Target allocation of plan assets for retirement benefit plans for the next annual period is 100% debt instruments.
\nFrom 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\u00a0added as an employer on 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 88 million on December 31, 2025 (December 31, 2024: 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 19.5 years (2024: 20.8 years).
Also included in the reimbursement rights is the present value of the expected guaranteed premiums and management fees\u00a0to be paid to a.s.r. by AEN. The present value as of December 31, 2025, amounts to EUR 59 million (December 31, 2024: EUR\u00a080 million), discounted at a rate of 4.00% (2024: 3.51%).
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 2 million as of December 31, 2025 (December 31, 2024: EUR 4 million). The weighted average duration of the other post-employment benefit plans is\u00a09.7\u00a0years (2024: 11.4 years).
\nThe principal actuarial assumptions applicable to the year ended December 31 are as follows.
Transamerica\u2019s mortality assumptions (demographic actuarial assumptions) are based on the PRI-2012 Employee, Healthy Annuitant and Contingent Survivor Tables (90% white collar/10% blue collar) projected with Scale MP-2021 for 2025 assumption, and 2024 assumption respectively, for the relevant calendar years.
Aegon UK\u2019s mortality assumptions utilize the Club Vita tables based on analysis of Scheme membership CMI 2024 1.5%/1.25% p.a. (males/females) and Scheme membership CMI 2023 1.5%/1.25% p.a. (males/females).
Aegon Employees Netherlands B.V.\u2019s mortality assumptions are Company-specific and are derived from the Projections Life Tables 2025 and 2024, respectively.
| \n \n Financial actuarial assumptions used to determine defined benefit obligations at year-end | \n \n \n Transamerica | \n \n \n Aegon UK | \n \n \n AEN | \n |||
| \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n |
| \n \n Discount rate | \n \n \n 5.45%/5.23% | \n \n \n 5.59%/5.51%1 | \n \n \n 5.66% | \n \n \n 5.58% | \n \n \n 4.00% | \n \n \n 3.51% | \n
| \n \n Salary increase rate | \n \n \n 4.00% | \n \n \n 4.00% | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Health care trend rate | \n \n \n 8.50% | \n \n \n 6.90% | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Price inflation | \n \n \n n.a. | \n \n \n n.a. | \n \n \n 3.00% | \n \n \n 3.19% | \n \n \n 2.13% | \n \n \n 1.99% | \n
The principal actuarial assumptions affect 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 Estimated approximate effects on the defined benefit obligation | \n \n \n Transamerica | \n \n \n Aegon UK | \n \n \n AEN | \n |||
| \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n |
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 10% increase in mortality rates | \n \n \n \n \n (40) \n | \n \n \n \n \n (46) \n | \n \n \n \n \n (20) \n | \n \n \n \n \n (21) \n | \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 44 | \n \n \n 51 | \n \n \n 21 | \n \n \n 23 | \n \n \n 1 | \n \n \n 1 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 100 basis points increase in discount rate | \n \n \n \n \n (163) \n | \n \n \n \n \n (183) \n | \n \n \n \n \n (103) \n | \n \n \n \n \n (114) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (13) \n | \n
| \n \n 100 basis points decrease in discount rate | \n \n \n 201 | \n \n \n 232 | \n \n \n 126 | \n \n \n 142 | \n \n \n 16 | \n \n \n 17 | \n
| \n \n 100 basis points increase in salary increase rate | \n \n \n 4 | \n \n \n 4 | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n 100 basis points decrease in salary increase rate | \n \n \n \n \n (3) \n | \n \n \n \n \n (4) \n | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n 100 basis points increase in health care trend rate | \n \n \n 9 | \n \n \n 12 | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n 100 basis points decrease in health care trend rate | \n \n \n \n \n (9) \n | \n \n \n \n \n (10) \n | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n 100 basis points increase in price inflation | \n \n \n n.a. | \n \n \n n.a. | \n \n \n 110 | \n \n \n 50 | \n \n \n - | \n \n \n - | \n
| \n \n 100 basis points decrease in price inflation | \n \n \n n.a. | \n \n \n n.a. | \n \n \n \n \n (101) \n | \n \n \n \n \n (95) \n | \n \n \n - | \n \n \n - | \n
The above sensitivity analysis is based on a change in one assumption, with all other assumptions held 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.
\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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22298m14211p": { "value": "\nCertain Aegon employees, including the Executive Director and a small number of senior management, receive short-term incentive (STI) compensation, based on Aegon\u2019s performance, the employee\u2019s unit performance and individual performance against predefined financial and nonfinancial performance metrics and targets, as well as the continued employment of the employee. While most participants are paid in cash after 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 from 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 vest after the Board of Directors adopt the Company\u2019s Annual Accounts following the\u00a0last deferral year. Employees are not eligible to receive a dividend during the deferral period of STI awards. In exceptional cases, the short-term incentive may be adjusted downwards before allocation or pay-out (malus) or after pay-out (claw back), taking into account the outcomes of an ex-ante or ex-post risk assessment.
\nBeginning in 2024, the Executive Director and select senior management may participate in a long-term incentive (LTI) plan designed to align with shareholder interests. This performance-based restricted stock plan is settled in Aegon shares after a\u00a0three-year performance period.\u00a0The grant price of these shares is equal to the volume-weighted average price (VWAP) on\u00a0the\u00a0Euronext stock exchange in Amsterdam during the period between December 15 preceding the plan year and January\u00a015 of\u00a0the plan year. Dividend equivalents are accumulated and paid after the performance period. The awarded LTI\u00a0shares 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 two-year holding period that continues post-employment, during which time they cannot be sold. In exceptional cases, the long-term incentive may be adjusted downwards before allocation or pay-out (malus) or after pay-out (claw back), after considering the\u00a0outcomes of an\u00a0ex-ante or ex-post risk assessment.
\nSelected Executive Committee members and other senior employees receive part of their fixed compensation in Aegon shares, in addition to cash.\u00a0The grant price of these shares is equal to\u00a0the\u00a0volume-weighted average price (VWAP) on Euronext Amsterdam during the period between December 15 preceding the plan year through January 15 of the plan year. Once allocated, these shares are unconditional and not tied to continued employment. They vest following Board approval of the Annual Accounts for 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 payout. During the holding period (if applicable), the employee is not allowed to sell these shares. No dividends are paid during the deferral period.
\nNon-Executive Directors receive around 75% of their annual Board fee in cash and 25% in fixed Aegon shares. The grant price of these shares is equal to the\u00a0volume-weighted average price (VWAP) on the Euronext stock exchange in Amsterdam during the period from December 15 preceding the plan year to January 15 of the plan year.
These shares vest after the completion of the calendar year. Dividend equivalents accrued during the calendar year are payable as additional Aegon shares at the time of vesting, with no dependence \u00a0on any performance condition. Shares are not forfeited when the Board membership of a Non-Executive Director ends before vesting.\u00a0Shares granted to Non-Executive Directors do not have a holding period or a deferral period.
\nEmployees may receive a sign-on package in cash and Aegon shares, in line with the applicable rules and regulations. Allocated shares are conditional on continued employment and typically cliff-vest after one, two, and three years. Payout\u00a0occurs only after Board approval of the Annual Accounts following the final deferral year. No dividends are paid during the deferral period.
The overview below shows the cumulative number of shares and their status across long-term and short-term incentive plans, fixed compensation, and sign-on arrangements.
| \n \n Number of shares per plan year | \n \n \n 2021 | \n \n \n 2022 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n Total | \n
| \n \n Conditionally granted 1 | \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 7,941,585 | \n \n \n 40,964,748 | \n
| \n \n Allocated 2 | \n \n \n 13,297,242 | \n \n \n 10,953,082 | \n \n \n 10,831,102 3 | \n \n \n 8,357,507 4 | \n \n \n 600,544 5 | \n \n \n 44,039,477 | \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 2021 | \n \n \n 2022 | \n \n \n 2023 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n Total | \n
| \n \n Unvested on January 1, 2023 | \n \n \n 13,787,592 | \n \n \n 9,447,642 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 23,235,234 | \n
| \n \n Conditionally granted as variable compensation 1 | \n \n \n - | \n \n \n - | \n \n \n 7,932,942 | \n \n \n - | \n \n \n - | \n \n \n 7,932,942 | \n
| \n \n Allocated 2 | \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 - | \n \n \n 2,816,049 | \n
| \n \n Forfeited | \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 \n \n \n (670,441) \n | \n
| \n \n Vested | \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 \n \n \n (1,441,881) \n | \n
| \n \n Unvested on December 31, 2023 | \n \n \n 12,585,364 | \n \n \n 9,923,386 | \n \n \n 9,363,153 | \n \n \n - | \n \n \n - | \n \n \n 31,871,903 | \n
| \n \n Conditionally granted as variable compensation 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 8,145,463 | \n \n \n - | \n \n \n 8,145,463 | \n
| \n \n Allocated 2 | \n \n \n 3,784 | \n \n \n 19,342 | \n \n \n 1,386,948 | \n \n \n 893,378 | \n \n \n - | \n \n \n 2,303,452 | \n
| \n \n Forfeited | \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 \n \n \n (557,116) \n | \n
| \n \n Vested | \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 \n \n \n (6,791,207) \n | \n
| \n \n Unvested on December 31, 2024 | \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 - | \n \n \n 34,972,495 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Conditionally granted as variable compensation 1 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 7,941,585 | \n \n \n 7,941,585 | \n
| \n \n Allocated 2 | \n \n \n - | \n \n \n - | \n \n \n 3,303 | \n \n \n 113,905 | \n \n \n 600,544 | \n \n \n 717,752 | \n
| \n \n Forfeited | \n \n \n - | \n \n \n \n \n (51,727) \n | \n \n \n \n \n (133,432) \n | \n \n \n \n \n (144,205) \n | \n \n \n - | \n \n \n \n \n (329,364) \n | \n
| \n \n Vested | \n \n \n \n \n (6,502,517) \n | \n \n \n \n \n (4,199,782) \n | \n \n \n \n \n (82,469) \n | \n \n \n \n \n (252,971) \n | \n \n \n \n \n (9,337) \n | \n \n \n \n \n (11,047,076) \n | \n
| \n \n Unvested on December 31, 2025 | \n \n \n - | \n \n \n 4,858,150 | \n \n \n 10,136,682 | \n \n \n 8,727,768 | \n \n \n 8,532,792 | \n \n \n 32,255,392 | \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 3.293 | \n \n \n 4.491 | \n \n \n 4.833 | \n \n \n 5.262 | \n \n \n 5.771 | \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 1.625 to | \n \n \n 3.341 to | \n \n \n 3.555 to | \n \n \n 3.7100 to | \n \n \n 3.7060 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22921m14510p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 \n \n (6,258) \n | \n \n \n - | \n \n \n \n \n (6,520) \n | \n \n \n - | \n \n \n \n \n (6,965) \n | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n \n \n (1,132) \n | \n \n \n - | \n \n \n \n \n (1,111) \n | \n \n \n - | \n \n \n \n \n (1,081) \n | \n \n \n - | \n
| \n \n Commissions | \n \n \n \n \n (1,533) \n | \n \n \n \n \n (928) \n | \n \n \n \n \n (1,449) \n | \n \n \n \n \n (937) \n | \n \n \n \n \n (1,403) \n | \n \n \n \n \n (1,069) \n | \n
| \n \n Handling and clearing fees | \n \n \n - | \n \n \n \n \n (27) \n | \n \n \n - | \n \n \n \n \n (30) \n | \n \n \n - | \n \n \n \n \n (32) \n | \n
| \n \n Right-of-use assets \u2013 interest expense | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n
| \n \n Employee expenses | \n \n \n \n \n (567) \n | \n \n \n \n \n (1,285) \n | \n \n \n \n \n (620) \n | \n \n \n \n \n (1,198) \n | \n \n \n \n \n (604) \n | \n \n \n \n \n (1,107) \n | \n
| \n \n Administration expenses | \n \n \n \n \n (523) \n | \n \n \n \n \n (684) \n | \n \n \n \n \n (500) \n | \n \n \n \n \n (785) \n | \n \n \n \n \n (551) \n | \n \n \n \n \n (780) \n | \n
| \n \n Deferred transaction expenses | \n \n \n - | \n \n \n 43 | \n \n \n - | \n \n \n 35 | \n \n \n - | \n \n \n 29 | \n
| \n \n Amortization of deferred expenses | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n - | \n \n \n \n \n (22) \n | \n \n \n - | \n \n \n \n \n (21) \n | \n
| \n \n Amortization of other intangibles | \n \n \n - | \n \n \n \n \n (18) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n \n \n (13) \n | \n
| \n \n Total | \n \n \n \n \n (10,012) \n | \n \n \n \n \n (2,928) \n | \n \n \n \n \n (10,200) \n | \n \n \n \n \n (2,961) \n | \n \n \n \n \n (10,604) \n | \n \n \n \n \n (3,000) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts attributed to acquisition cash flows | \n \n \n 1,151 | \n \n | \n\n \n 983 | \n \n \n - | \n \n \n 956 | \n \n \n - | \n
| \n \n Amortization of acquisition cash flows | \n \n \n \n \n (538) \n | \n \n | \n\n \n \n \n (553) \n | \n \n \n - | \n \n \n \n \n (558) \n | \n \n \n - | \n
| \n \n Amortization of acquisition cash flows PAA | \n \n \n \n \n (24) \n | \n \n | \n\n \n \n \n (20) \n | \n \n \n - | \n \n \n \n \n (19) \n | \n \n \n - | \n
| \n \n Total other operating expenses | \n \n \n \n \n (9,423) \n | \n \n \n \n \n (2,928) \n | \n \n \n \n \n (9,790) \n | \n \n \n \n \n (2,961) \n | \n \n \n \n \n (10,226) \n | \n \n \n \n \n (3,000) \n | \n
| \n \n Employee expenses | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Salaries | \n \n \n \n \n (1,189) \n | \n \n \n \n \n (1,205) \n | \n \n \n \n \n (1,131) \n | \n
| \n \n Post-employment benefit costs | \n \n \n \n \n (133) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (125) \n | \n
| \n \n Social security charges | \n \n \n \n \n (119) \n | \n \n \n \n \n (118) \n | \n \n \n \n \n (107) \n | \n
| \n \n Other personnel costs | \n \n \n \n \n (352) \n | \n \n \n \n \n (310) \n | \n \n \n \n \n (294) \n | \n
| \n \n Shares | \n \n \n \n \n (59) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (54) \n | \n
| \n \n Total | \n \n \n \n \n (1,852) \n | \n \n \n \n \n (1,818) \n | \n \n \n \n \n (1,711) \n | \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 \n \n (61) \n | \n \n \n \n \n (61) \n | \n \n \n \n \n (57) \n | \n
Other operating expenses that arise directly from or can be allocated to the fulfillment of insurance contracts or investment contracts with discretionary participation 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23964m14204p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 \n \n (6,258) \n | \n \n \n - | \n \n \n \n \n (6,520) \n | \n \n \n - | \n \n \n \n \n (6,965) \n | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n \n \n (1,132) \n | \n \n \n - | \n \n \n \n \n (1,111) \n | \n \n \n - | \n \n \n \n \n (1,081) \n | \n \n \n - | \n
| \n \n Commissions | \n \n \n \n \n (1,533) \n | \n \n \n \n \n (928) \n | \n \n \n \n \n (1,449) \n | \n \n \n \n \n (937) \n | \n \n \n \n \n (1,403) \n | \n \n \n \n \n (1,069) \n | \n
| \n \n Handling and clearing fees | \n \n \n - | \n \n \n \n \n (27) \n | \n \n \n - | \n \n \n \n \n (30) \n | \n \n \n - | \n \n \n \n \n (32) \n | \n
| \n \n Right-of-use assets \u2013 interest expense | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n
| \n \n Employee expenses | \n \n \n \n \n (567) \n | \n \n \n \n \n (1,285) \n | \n \n \n \n \n (620) \n | \n \n \n \n \n (1,198) \n | \n \n \n \n \n (604) \n | \n \n \n \n \n (1,107) \n | \n
| \n \n Administration expenses | \n \n \n \n \n (523) \n | \n \n \n \n \n (684) \n | \n \n \n \n \n (500) \n | \n \n \n \n \n (785) \n | \n \n \n \n \n (551) \n | \n \n \n \n \n (780) \n | \n
| \n \n Deferred transaction expenses | \n \n \n - | \n \n \n 43 | \n \n \n - | \n \n \n 35 | \n \n \n - | \n \n \n 29 | \n
| \n \n Amortization of deferred expenses | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n - | \n \n \n \n \n (22) \n | \n \n \n - | \n \n \n \n \n (21) \n | \n
| \n \n Amortization of other intangibles | \n \n \n - | \n \n \n \n \n (18) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n \n \n (13) \n | \n
| \n \n Total | \n \n \n \n \n (10,012) \n | \n \n \n \n \n (2,928) \n | \n \n \n \n \n (10,200) \n | \n \n \n \n \n (2,961) \n | \n \n \n \n \n (10,604) \n | \n \n \n \n \n (3,000) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts attributed to acquisition cash flows | \n \n \n 1,151 | \n \n | \n\n \n 983 | \n \n \n - | \n \n \n 956 | \n \n \n - | \n
| \n \n Amortization of acquisition cash flows | \n \n \n \n \n (538) \n | \n \n | \n\n \n \n \n (553) \n | \n \n \n - | \n \n \n \n \n (558) \n | \n \n \n - | \n
| \n \n Amortization of acquisition cash flows PAA | \n \n \n \n \n (24) \n | \n \n | \n\n \n \n \n (20) \n | \n \n \n - | \n \n \n \n \n (19) \n | \n \n \n - | \n
| \n \n Total other operating expenses | \n \n \n \n \n (9,423) \n | \n \n \n \n \n (2,928) \n | \n \n \n \n \n (9,790) \n | \n \n \n \n \n (2,961) \n | \n \n \n \n \n (10,226) \n | \n \n \n \n \n (3,000) \n | \n
The following schedules presents the measurement components comprising the Best estimate liability (BEL), Risk adjustment (RA), and contractual Service Margin (CSM).
| \n | \n\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n Insurance contracts (Non-PAA) - by component | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n
| \n \n Opening 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 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 176,063 | \n \n \n 3,295 | \n \n \n 8,959 | \n \n \n 188,318 | \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 | \n \n \n 175,611 | \n \n \n 3,618 | \n \n \n 8,964 | \n \n \n 188,193 | \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\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust CSM | \n \n \n \n \n (371) \n | \n \n \n \n \n (78) \n | \n \n \n 449 | \n \n \n - | \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 adjust onerous contracts | \n \n \n 1,069 | \n \n \n 29 | \n \n \n - | \n \n \n 1,098 | \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 (788) \n | \n \n \n 118 | \n \n \n 669 | \n \n \n - | \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 25 | \n \n \n 17 | \n \n \n - | \n \n \n 42 | \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 \n \n (65) \n | \n \n \n 86 | \n \n \n 1,118 | \n \n \n 1,139 | \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\n | \n\n | \n\n | \n
| \n \n Earnings released from CSM | \n \n \n - | \n \n \n - | \n \n \n \n \n (930) \n | \n \n \n \n \n (930) \n | \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 (278) \n | \n \n \n - | \n \n \n \n \n (278) \n | \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 439 | \n \n \n - | \n \n \n - | \n \n \n 439 | \n \n \n 101 | \n \n \n - | \n \n \n - | \n \n \n 101 | \n
| \n \n Revenue from policyholder tax expenses incurred | \n \n \n \n \n (11) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (11) \n | \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 428 | \n \n \n \n \n (278) \n | \n \n \n \n \n (930) \n | \n \n \n \n \n (780) \n | \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\n | \n\n | \n\n | \n
| \n \n Experience adjustments on incurred claims | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 1 | \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 1 | \n \n \n - | \n \n \n - | \n \n \n 1 | \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\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n 364 | \n \n \n \n \n (191) \n | \n \n \n 189 | \n \n \n 361 | \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\n | \n\n | \n\n | \n
| \n \n General model | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest accreted to insurance contracts | \n \n \n 2,654 | \n \n \n 141 | \n \n \n 226 | \n \n \n 3,021 | \n \n \n 2,693 | \n \n \n 178 | \n \n \n 225 | \n \n \n 3,096 | \n
| \n \n Interest rate and other financial assumption changes | \n \n \n 1,775 | \n \n \n \n \n (4) \n | \n \n \n - | \n \n \n 1,771 | \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 \n \n (138) \n | \n \n \n 10 | \n \n \n - | \n \n \n \n \n (128) \n | \n \n \n 121 | \n \n \n - | \n \n \n - | \n \n \n 121 | \n
| \n | \n\n | \n\n | \n\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\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets | \n \n \n 14,316 | \n \n \n - | \n \n \n - | \n \n \n 14,316 | \n \n \n 12,719 | \n \n \n - | \n \n \n - | \n \n \n 12,719 | \n
| \n \n Change in fulfilment value - risk mitigation option | \n \n \n \n \n (836) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (836) \n | \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 17,770 | \n \n \n 148 | \n \n \n 226 | \n \n \n 18,143 | \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\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 14,405 | \n \n \n - | \n \n \n - | \n \n \n 14,405 | \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 (24,576) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (24,576) \n | \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 (1,126) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (1,126) \n | \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 (30) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (30) \n | \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 (11,326) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (11,326) \n | \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\n | \n\n | \n\n | \n
| \n \n Contracts disposed during the period | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (128) \n | \n \n \n - | \n \n \n 43 | \n \n \n \n \n (85) \n | \n
| \n \n Disposal of a business | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Transfers to disposal groups | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \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 \n - | \n \n \n - | \n \n \n - | \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 (7) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (7) \n | \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 Net exchange differences | \n \n \n \n \n (17,981) \n | \n \n \n \n \n (405) \n | \n \n \n \n \n (972) \n | \n \n \n \n \n (19,358) \n | \n \n \n 10,242 | \n \n \n 224 | \n \n \n 529 | \n \n \n 10,996 | \n
| \n \n Net closing balance | \n \n \n 164,430 | \n \n \n 3,169 | \n \n \n 8,406 | \n \n \n 176,006 | \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 100 | \n \n \n \n \n (35) \n | \n \n \n \n \n (47) \n | \n \n \n 18 | \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 164,531 | \n \n \n 3,134 | \n \n \n 8,359 | \n \n \n 176,024 | \n \n \n 176,063 | \n \n \n 3,295 | \n \n \n 8,959 | \n \n \n 188,318 | \n
| \n | \n\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n |||
| \n \n Investment contracts with DPF - by component | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n \n \n BEL | \n \n \n RA | \n \n \n CSM | \n \n \n Total | \n
| \n \n Opening assets | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Opening liabilities | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n \n \n 21,285 | \n \n \n 128 | \n \n \n 180 | \n \n \n 21,594 | \n
| \n \n Net opening balance | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \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\n | \n\n | \n\n | \n
| \n \n Changes in estimates that adjust CSM | \n \n \n \n \n (66) \n | \n \n \n 5 | \n \n \n 61 | \n \n \n - | \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 in estimates that adjust onerous contracts | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Changes that relate to future service | \n \n \n \n \n (64) \n | \n \n \n 5 | \n \n \n 61 | \n \n \n 2 | \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\n | \n\n | \n\n | \n
| \n \n Earnings released from CSM | \n \n \n - | \n \n \n - | \n \n \n \n \n (37) \n | \n \n \n \n \n (37) \n | \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 - | \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 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \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 4 | \n \n \n \n \n (14) \n | \n \n \n \n \n (37) \n | \n \n \n \n \n (47) \n | \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\n | \n\n | \n\n | \n
| \n \n Insurance service result | \n \n \n \n \n (60) \n | \n \n \n \n \n (10) \n | \n \n \n 25 | \n \n \n \n \n (45) \n | \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\n | \n\n | \n\n | \n
| \n \n Variable fee approach | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Change in fair value of the underlying assets | \n \n \n 2,916 | \n \n \n - | \n \n \n - | \n \n \n 2,916 | \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 2,916 | \n \n \n - | \n \n \n - | \n \n \n 2,916 | \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\n | \n\n | \n\n | \n
| \n \n Premiums received | \n \n \n 413 | \n \n \n - | \n \n \n - | \n \n \n 413 | \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 (3,157) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (3,157) \n | \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 Acquisition costs paid | \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
| \n \n Other | \n \n \n 1 | \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 Cash flows | \n \n \n \n \n (2,744) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2,744) \n | \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\n | \n\n | \n\n | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,159) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (1,177) \n | \n \n \n 1,015 | \n \n \n 6 | \n \n \n 10 | \n \n \n 1,030 | \n
| \n \n Net closing balance | \n \n \n 20,940 | \n \n \n 97 | \n \n \n 245 | \n \n \n 21,281 | \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 - | \n \n \n - | \n \n \n - | \n \n \n - | \n
| \n \n Closing liabilities | \n \n \n 20,940 | \n \n \n 97 | \n \n \n 245 | \n \n \n 21,281 | \n \n \n 21,987 | \n \n \n 112 | \n \n \n 233 | \n \n \n 22,332 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \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 \n \n (6,258) \n | \n \n \n - | \n \n \n \n \n (6,520) \n | \n \n \n - | \n \n \n \n \n (6,965) \n | \n \n \n - | \n
| \n \n \n \n Onerous contract losses (and reversals) \n | \n \n \n \n \n (1,132) \n | \n \n \n - | \n \n \n \n \n (1,111) \n | \n \n \n - | \n \n \n \n \n (1,081) \n | \n \n \n - | \n
| \n \n Commissions | \n \n \n \n \n (1,533) \n | \n \n \n \n \n (928) \n | \n \n \n \n \n (1,449) \n | \n \n \n \n \n (937) \n | \n \n \n \n \n (1,403) \n | \n \n \n \n \n (1,069) \n | \n
| \n \n Handling and clearing fees | \n \n \n - | \n \n \n \n \n (27) \n | \n \n \n - | \n \n \n \n \n (30) \n | \n \n \n - | \n \n \n \n \n (32) \n | \n
| \n \n Right-of-use assets \u2013 interest expense | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (6) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n
| \n \n Employee expenses | \n \n \n \n \n (567) \n | \n \n \n \n \n (1,285) \n | \n \n \n \n \n (620) \n | \n \n \n \n \n (1,198) \n | \n \n \n \n \n (604) \n | \n \n \n \n \n (1,107) \n | \n
| \n \n Administration expenses | \n \n \n \n \n (523) \n | \n \n \n \n \n (684) \n | \n \n \n \n \n (500) \n | \n \n \n \n \n (785) \n | \n \n \n \n \n (551) \n | \n \n \n \n \n (780) \n | \n
| \n \n Deferred transaction expenses | \n \n \n - | \n \n \n 43 | \n \n \n - | \n \n \n 35 | \n \n \n - | \n \n \n 29 | \n
| \n \n Amortization of deferred expenses | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n - | \n \n \n \n \n (22) \n | \n \n \n - | \n \n \n \n \n (21) \n | \n
| \n \n Amortization of other intangibles | \n \n \n - | \n \n \n \n \n (18) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n \n \n (13) \n | \n
| \n \n Total | \n \n \n \n \n (10,012) \n | \n \n \n \n \n (2,928) \n | \n \n \n \n \n (10,200) \n | \n \n \n \n \n (2,961) \n | \n \n \n \n \n (10,604) \n | \n \n \n \n \n (3,000) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Amounts attributed to acquisition cash flows | \n \n \n 1,151 | \n \n | \n\n \n 983 | \n \n \n - | \n \n \n 956 | \n \n \n - | \n
| \n \n Amortization of acquisition cash flows | \n \n \n \n \n (538) \n | \n \n | \n\n \n \n \n (553) \n | \n \n \n - | \n \n \n \n \n (558) \n | \n \n \n - | \n
| \n \n Amortization of acquisition cash flows PAA | \n \n \n \n \n (24) \n | \n \n | \n\n \n \n \n (20) \n | \n \n \n - | \n \n \n \n \n (19) \n | \n \n \n - | \n
| \n \n Total other operating expenses | \n \n \n \n \n (9,423) \n | \n \n \n \n \n (2,928) \n | \n \n \n \n \n (9,790) \n | \n \n \n \n \n (2,961) \n | \n \n \n \n \n (10,226) \n | \n \n \n \n \n (3,000) \n | \n
| \n \n Employee expenses | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Salaries | \n \n \n \n \n (1,189) \n | \n \n \n \n \n (1,205) \n | \n \n \n \n \n (1,131) \n | \n
| \n \n Post-employment benefit costs | \n \n \n \n \n (133) \n | \n \n \n \n \n (127) \n | \n \n \n \n \n (125) \n | \n
| \n \n Social security charges | \n \n \n \n \n (119) \n | \n \n \n \n \n (118) \n | \n \n \n \n \n (107) \n | \n
| \n \n Other personnel costs | \n \n \n \n \n (352) \n | \n \n \n \n \n (310) \n | \n \n \n \n \n (294) \n | \n
| \n \n Shares | \n \n \n \n \n (59) \n | \n \n \n \n \n (58) \n | \n \n \n \n \n (54) \n | \n
| \n \n Total | \n \n \n \n \n (1,852) \n | \n \n \n \n \n (1,818) \n | \n \n \n \n \n (1,711) \n | \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 \n \n (61) \n | \n \n \n \n \n (61) \n | \n \n \n \n \n (57) \n | \n
Other operating expenses that arise directly from or can be allocated to the fulfillment of insurance contracts or investment contracts with discretionary participation 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 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Other income | \n \n \n 137 | \n \n \n 153 | \n \n \n 35 | \n
| \n \n Other charges | \n \n \n \n \n (6) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (92) \n | \n
| \n \n For the year ended December 31 | \n \n \n 130 | \n \n \n 145 | \n \n \n \n \n (57) \n | \n
Other income in 2025 mainly relates to the proceeds from the sale of 12.5 million shares in a.s.r.
Other income in 2024 mainly reflects a gain on the completion of the 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22272m14199p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Other income | \n \n \n 137 | \n \n \n 153 | \n \n \n 35 | \n
| \n \n Other charges | \n \n \n \n \n (6) \n | \n \n \n \n \n (8) \n | \n \n \n \n \n (92) \n | \n
| \n \n For the year ended December 31 | \n \n \n 130 | \n \n \n 145 | \n \n \n \n \n (57) \n | \n
Other income in 2025 mainly relates to the proceeds from the sale of 12.5 million shares in a.s.r.
Other income in 2024 mainly reflects a gain on the completion of the 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21599m13976p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Current year | \n \n \n \n \n (58) \n | \n \n \n \n \n (19) \n | \n \n \n \n \n (4) \n | \n
| \n \n Adjustments to prior years | \n \n \n 16 | \n \n \n 20 | \n \n \n 9 | \n
| \n \n Total current tax | \n \n \n \n \n (42) \n | \n \n \n 1 | \n \n \n 5 | \n
| \n \n (Origination) / reversal of temporary differences | \n \n \n 12 | \n \n \n 31 | \n \n \n 247 | \n
| \n \n Changes in tax rates / bases | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Changes in deferred tax assets 1 | \n \n \n 9 | \n \n \n - | \n \n \n \n \n (9) \n | \n
| \n \n Non-recognition of deferred tax assets | \n \n \n \n \n (61) \n | \n \n \n 13 | \n \n \n \n \n (61) \n | \n
| \n \n Adjustments to prior years | \n \n \n 20 | \n \n \n \n \n (29) \n | \n \n \n 27 | \n
| \n \n \n \n Total deferred tax (note 34) \n | \n \n \n \n \n (22) \n | \n \n \n 15 | \n \n \n 204 | \n
| \n \n Income tax benefit / (charge) for the year ended December 31 | \n \n \n \n \n (65) \n | \n \n \n 16 | \n \n \n 209 | \n
| \n \n Reconciliation between standard and effective income tax | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Result before tax from continuing operations | \n \n \n 1,045 | \n \n \n 660 | \n \n \n \n \n (391) \n | \n
| \n \n Income tax calculated using weighted average applicable statutory tax rates | \n \n \n \n \n (187) \n | \n \n \n \n \n (119) \n | \n \n \n 94 | \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 76 | \n \n \n 44 | \n \n \n 39 | \n
| \n \n Non-tax-deductible expenses | \n \n \n \n \n (9) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (12) \n | \n
| \n \n Changes in tax rate/base | \n \n \n \n \n (3) \n | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Different tax rates on overseas earnings | \n \n \n \n \n (3) \n | \n \n \n \n \n (4) \n | \n \n \n \n \n (3) \n | \n
| \n \n Tax credits | \n \n \n 36 | \n \n \n 41 | \n \n \n 34 | \n
| \n \n Other taxes | \n \n \n \n \n (31) \n | \n \n \n \n \n (9) \n | \n \n \n - | \n
| \n \n Adjustments to prior years | \n \n \n 35 | \n \n \n \n \n (9) \n | \n \n \n 36 | \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 10 | \n \n \n 1 | \n \n \n \n \n (9) \n | \n
| \n \n Non-recognition of deferred tax assets | \n \n \n \n \n (61) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (20) \n | \n
| \n \n Tax effect of profit / (losses) from joint ventures and associates | \n \n \n 75 | \n \n \n 110 | \n \n \n 47 | \n
| \n \n Other | \n \n \n \n \n (2) \n | \n \n \n 1 | \n \n \n 3 | \n
| \n \n Total differences | \n \n \n 123 | \n \n \n 135 | \n \n \n 115 | \n
| \n \n Income tax benefit / (charge) for the year ended December 31 | \n \n \n \n \n (65) \n | \n \n \n 16 | \n \n \n 209 | \n
In September 2023, the legal seat of Aegon N.V. was redomiciled to Bermuda. Headquarters remained in the Netherlands and\u00a0the company remained a Dutch tax resident.
Aegon is within the scope of the OECD Pillar Two model rules. Aegon has performed an assessment of its potential exposure to Pillar Two income taxes based on the 2025 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 2025.\u00a0Aegon continues to monitor Pillar Two legislative developments, as additional guidance may be released, to evaluate the potential future impact on its consolidated results of operations and financial position.\u00a0
The weighted average applicable statutory tax rate for 2025 is 17.9% (2024: 18.0%). The lower weighted average applicable statutory tax rate compared to the statutory tax rate is mainly due to the relatively high contribution of income before tax in the equity accounted joint ventures and associates in 2025 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 2025 is 23.7% (2024: 24.9%).
Non-taxable income in 2025 is comprised of the regular non-taxable items such as the dividend received deduction in\u00a0the\u00a0United States and the participation exemption in the Netherlands.
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 2025, adjustments to prior years mainly relate to the release of tax provisions.
Non-recognition of deferred tax assets in 2025 includes the valuation allowance for state tax losses in the United States, and interest expenses and tax losses in The Netherlands.
The following tables present income tax related to components of other comprehensive income and retained earnings.
| \n \n Income tax related to items of other comprehensive income | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Remeasurements of defined benefit plans | \n \n \n \n \n (4) \n | \n \n \n 1 | \n \n \n 17 | \n
| \n \n Items that will not be reclassified to profit or loss | \n \n \n \n \n (4) \n | \n \n \n 1 | \n \n \n 17 | \n
| \n \n Unrealized (Gains) / losses on revaluation of FVOCI investments | \n \n \n \n \n (419) \n | \n \n \n 237 | \n \n \n \n \n (487) \n | \n
| \n \n Revaluation reserve - Insurance contracts | \n \n \n 174 | \n \n \n \n \n (530) \n | \n \n \n 397 | \n
| \n \n Revaluation reserve - Reinsurance contracts | \n \n \n \n \n (22) \n | \n \n \n 177 | \n \n \n \n \n (126) \n | \n
| \n \n Changes in cash flow hedging reserve | \n \n \n 49 | \n \n \n 45 | \n \n \n 42 | \n
| \n \n Movement in foreign currency translation and net foreign investment hedging reserve | \n \n \n - | \n \n \n 7 | \n \n \n 3 | \n
| \n \n Items that may be reclassified subsequently to profit or loss | \n \n \n \n \n (218) \n | \n \n \n \n \n (64) \n | \n \n \n \n \n (171) \n | \n
| \n \n Total | \n \n \n \n \n (222) \n | \n \n \n \n \n (63) \n | \n \n \n \n \n (154) \n | \n
| \n \n Income tax related to items recognized in retained earnings | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Equity instruments | \n \n \n 15 | \n \n \n \n \n (8) \n | \n \n \n 17 | \n
| \n \n Other | \n \n \n 1 | \n \n \n 7 | \n \n \n 1 | \n
| \n \n Total | \n \n \n 16 | \n \n \n \n \n (1) \n | \n \n \n 18 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Deferred tax assets | \n \n \n 1,894 | \n \n \n 2,439 | \n
| \n \n Deferred tax liabilities | \n \n \n 13 | \n \n \n 64 | \n
| \n \n On December 31 | \n \n \n 1,882 | \n \n \n 2,375 | \n
| \n \n Deferred tax assets comprise temporary differences on | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Financial assets | \n \n \n 458 | \n \n \n 1,067 | \n
| \n \n Insurance and investment contracts | \n \n \n \n \n (344) \n | \n \n \n \n \n (1,124) \n | \n
| \n \n Deferred expenses and other intangible assets | \n \n \n 459 | \n \n \n 580 | \n
| \n \n Defined benefit plans | \n \n \n 203 | \n \n \n 237 | \n
| \n \n Tax losses and credits carried forward | \n \n \n 1,113 | \n \n \n 1,448 | \n
| \n \n Other | \n \n \n 6 | \n \n \n 231 | \n
| \n \n On December 31 | \n \n \n 1,894 | \n \n \n 2,439 | \n
| \n \n Deferred tax liabilities comprise temporary differences on | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Financial assets | \n \n \n \n \n (9) \n | \n \n \n 1 | \n
| \n \n Insurance and investment contracts | \n \n \n \n \n (1) \n | \n \n \n 56 | \n
| \n \n Deferred expenses and other intangible assets | \n \n \n - | \n \n \n 4 | \n
| \n \n Other | \n \n \n 22 | \n \n \n 3 | \n
| \n \n On December 31 | \n \n \n 13 | \n \n \n 64 | \n
The following table provides a movement schedule of net deferred tax broken-down by the items for which a deferred tax asset or liability has been recognized.
| \n | \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, 2025 | \n \n \n 1,066 | \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 Acquisitions / Additions | \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 (1) \n | \n
| \n \n Charged to income statement | \n \n \n \n \n (141) \n | \n \n \n 574 | \n \n \n \n \n (50) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (189) \n | \n \n \n \n \n (207) \n | \n \n \n \n \n (22) \n | \n
| \n \n Charged to OCI | \n \n \n \n \n (358) \n | \n \n \n 152 | \n \n \n - | \n \n \n 2 | \n \n \n 2 | \n \n \n - | \n \n \n \n \n (201) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (108) \n | \n \n \n 110 | \n \n \n \n \n (67) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (148) \n | \n \n \n \n \n (30) \n | \n \n \n \n \n (270) \n | \n
| \n \n Transfer to/from other headings | \n \n \n 8 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (8) \n | \n \n \n - | \n
| \n \n On December 31, 2025 | \n \n \n 467 | \n \n \n \n \n (344) \n | \n \n \n 459 | \n \n \n 203 | \n \n \n 1,113 | \n \n \n \n \n (17) \n | \n \n \n 1,882 | \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 808 | \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 (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 (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 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 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 (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 1,066 | \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
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 2,295 million, an amount of\u00a0tax\u00a0EUR 515 million related to tax losses carried forward (2024: gross EUR 3,577 million; tax EUR 787 million), and an\u00a0amount of tax EUR 597 million related to tax credits carried forward (2024: tax EUR 661 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\n \n < 5 years | \n \n \n \u2265 5 \u2013 10 years | \n \n \n \u2265 10 \u2013 15 years | \n \n \n Indefinitely | \n \n \n On December 31 | \n
| \n \n Gross amounts 1 | \n \n \n 2025 | \n \n \n 18 | \n \n \n 1 | \n \n \n - | \n \n \n 1,153 | \n \n \n 1,172 | \n
| \n \n 2024 | \n \n \n 41 | \n \n \n 1 | \n \n \n - | \n \n \n 976 | \n \n \n 1,018 | \n |
| \n \n Unrecognized deferred tax assets | \n \n \n 2025 | \n \n \n 11 | \n \n \n - | \n \n \n 70 | \n \n \n 307 | \n \n \n 388 | \n
| \n \n 2024 | \n \n \n 15 | \n \n \n 1 | \n \n \n 79 | \n \n \n 269 | \n \n \n 364 | \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 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Deferred tax asset recoverable through retention of investments until recovery or maturity | \n \n \n 3,823 | \n \n \n 6,013 | \n \n \n 803 | \n \n \n 1,263 | \n
| \n \n Deferred tax asset dependent on future taxable profits | \n \n \n 822 | \n \n \n 141 | \n \n \n 173 | \n \n \n 30 | \n
| \n \n On December 31 | \n \n \n 4,645 | \n \n \n 6,154 | \n \n \n 976 | \n \n \n 1,293 | \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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21601m13977p": { "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 participation 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 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net result attributable to owners of Aegon Ltd. | \n \n \n 977 | \n \n \n 688 | \n \n \n \n \n (179) \n | \n
| \n \n Coupons on perpetual securities | \n \n \n \n \n (53) \n | \n \n \n \n \n (77) \n | \n \n \n \n \n (48) \n | \n
| \n \n Net result attributable to owners for basic earnings per share calculation | \n \n \n 925 | \n \n \n 611 | \n \n \n \n \n (227) \n | \n
| \n \n Net result attributable to common shareholders | \n \n \n 920 | \n \n \n 608 | \n \n \n \n \n (225) \n | \n
| \n \n Net result attributable to common shareholders B | \n \n \n 5 | \n \n \n 4 | \n \n \n \n \n (1) \n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Weighted average number of common shares outstanding (in millions) \n | \n \n \n 1,553 | \n \n \n 1,630 | \n \n \n 1,879 | \n
| \n \n \n \n Weighted average number of common shares B outstanding (in millions) \n | \n \n \n 345 | \n \n \n 380 | \n \n \n 490 | \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 0.59 | \n \n \n 0.37 | \n \n \n \n \n (0.12) \n | \n
| \n \n \n \n Basic earnings per common share B (EUR per share) \n | \n \n \n 0.01 | \n \n \n 0.01 | \n \n \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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24151m14774p": { "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 participation 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).
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22218m14177p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Cash at bank and in hand | \n \n \n 1,165 | \n \n \n 1,478 | \n \n \n 1,614 | \n
| \n \n Short-term deposits | \n \n \n 315 | \n \n \n 152 | \n \n \n 340 | \n
| \n \n Money market investments | \n \n \n 1,253 | \n \n \n 1,838 | \n \n \n 2,120 | \n
| \n \n On December 31 | \n \n \n 2,733 | \n \n \n 3,469 | \n \n \n 4,074 | \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 1,972 | \n \n \n 2,240 | \n \n \n 3,416 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Income from security lending programs | \n \n \n 3 | \n \n \n 4 | \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 2.13% | \n \n \n 3.17% | \n \n \n 3.90% | \n
| \n \n \n \n Average maturity on short-term deposits (in days) \n | \n \n \n 2 | \n \n \n 5 | \n \n \n 11 | \n
The disclosed carrying amounts reasonably approximate fair values at year-end.
See note 40 Transfers of financial assets\u00a0for details on collateral received and paid. 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).\u00a0
Cash and cash equivalent balances that are not available for use by the group is EUR 158 million (2024: EUR 141 million, 2023: EUR 98 million).
| \n \n Summary cash flow statement | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net cash flows from operating activities | \n \n \n 434 | \n \n \n 762 | \n \n \n 864 | \n
| \n \n Net cash flows from investing activities | \n \n \n 1,010 | \n \n \n 300 | \n \n \n \n \n (1,996) \n | \n
| \n \n Net cash flows from financing activities | \n \n \n \n \n (2,035) \n | \n \n \n \n \n (1,755) \n | \n \n \n \n \n (3,241) \n | \n
| \n \n Net increase / (decrease) in cash and cash equivalents | \n \n \n \n \n (591) \n | \n \n \n \n \n (694) \n | \n \n \n \n \n (4,373) \n | \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 \n \n (144) \n | \n \n \n 88 | \n \n \n \n \n (38) \n | \n
| \n \n Summary cash flow statement | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Net cash flows from operating activities | \n \n \n 434 | \n \n \n 762 | \n \n \n 864 | \n
| \n \n Net cash flows from investing activities | \n \n \n 1,010 | \n \n \n 300 | \n \n \n \n \n (1,996) \n | \n
| \n \n Net cash flows from financing activities | \n \n \n \n \n (2,035) \n | \n \n \n \n \n (1,755) \n | \n \n \n \n \n (3,241) \n | \n
| \n \n Net increase / (decrease) in cash and cash equivalents | \n \n \n \n \n (591) \n | \n \n \n \n \n (694) \n | \n \n \n \n \n (4,373) \n | \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 \n \n (144) \n | \n \n \n 88 | \n \n \n \n \n (38) \n | \n
Total net cash flow from operating activities decreased by EUR 328 million to an EUR 434 million inflow (2024: EUR 762 million inflow). The decrease is mainly driven by a lower cash result (result before tax adjusted for non-cash items),\u00a0and by changes in accruals (see note 36 Accruals).
Net cash flows from investing activities increased by EUR 710 million to an EUR 1,010 million inflow (2024: EUR 300 million inflow). The increase mainly reflects proceeds from reducing the investment in associate ASR Netherland N.V.(see\u00a0note 21 Investments in joint ventures and associates).
Net cash flows from financing activities increased by EUR 280 million to an EUR 2,035 million outflow(2024: EUR 1,755 million outflow).\u00a0 The increase is mainly driven by a higher net repayment from borrowings (refer to the table below 'Reconciliation of liabilities arising from financing activities'), partially offset by a lower cash outflow from share repurchases following Aegon's share buy back programs (see note 25.3 Treasury shares).
\nThe table below presents a reconciliation of liabilities arising from financing activities, split between changes from financing cash flows and non-cash changes, as reported in the consolidated statement of financial position
| \n | \n\n | \n\n \n Financing cash flows | \n \n \n Non-cash changes | \n \n | \n||||
| \n \n 2025 | \n \n \n On January 1 | \n \n \n Addition | \n \n \n Repayment | \n \n \n \n \n Realized gains / (losses) \n | \n \n \n Fair value hedge movements | \n \n \n Amortization | \n \n \n Net exchange difference | \n \n \n On December 31 | \n
| \n \n Subordinated borrowings | \n \n \n 1,653 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (195) \n | \n \n \n 1,461 | \n
| \n \n Trust pass-through securities | \n \n \n 113 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (13) \n | \n \n \n 99 | \n
| \n \n Borrowings | \n \n \n 3,013 | \n \n \n 946 | \n \n \n \n \n (1,707) \n | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (272) \n | \n \n \n 1,982 | \n
| \n \n Assets held to hedge Trust | \n \n \n \n \n (20) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (17) \n | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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 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 (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 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 (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 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Cash at bank and in hand | \n \n \n 1,165 | \n \n \n 1,478 | \n \n \n 1,614 | \n
| \n \n Short-term deposits | \n \n \n 315 | \n \n \n 152 | \n \n \n 340 | \n
| \n \n Money market investments | \n \n \n 1,253 | \n \n \n 1,838 | \n \n \n 2,120 | \n
| \n \n On December 31 | \n \n \n 2,733 | \n \n \n 3,469 | \n \n \n 4,074 | \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 1,972 | \n \n \n 2,240 | \n \n \n 3,416 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Income from security lending programs | \n \n \n 3 | \n \n \n 4 | \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 2.13% | \n \n \n 3.17% | \n \n \n 3.90% | \n
| \n \n \n \n Average maturity on short-term deposits (in days) \n | \n \n \n 2 | \n \n \n 5 | \n \n \n 11 | \n
See note 40 Transfers of financial assets\u00a0for details on collateral received and paid. 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).\u00a0
Cash and cash equivalent balances that are not available for use by the group is EUR 158 million (2024: EUR 141 million, 2023: EUR 98 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21602m13978p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 514 | \n \n \n 488 | \n
| \n \n Additions | \n \n \n 9 | \n \n \n 24 | \n
| \n \n Subsequent expenditure capitalized | \n \n \n 3 | \n \n \n 3 | \n
| \n \n Disposals | \n \n \n \n \n (39) \n | \n \n \n \n \n (34) \n | \n
| \n \n \n \n Fair value gains/(losses) \n | \n \n \n 18 | \n \n \n 10 | \n
| \n \n Transfers to other headings | \n \n \n 1 | \n \n \n - | \n
| \n \n Net exchange differences | \n \n \n \n \n (28) \n | \n \n \n 23 | \n
| \n \n On December 31 | \n \n \n 479 | \n \n \n 514 | \n
| \n | \n\n | \n\n | \n
| \n \n Value of Aegon's properties, which were appraised in the current year | \n \n \n 96% | \n \n \n 100% | \n
| \n \n Appraisals performed by independent external appraisers | \n \n \n 91% | \n \n \n 96% | \n
| \n | \n\n \n Insurance contracts | \n \n \n Investment contracts | \n \n \n Non-Insurance related | \n \n \n 2025 | \n \n \n Insurance contracts | \n \n \n Investment contracts | \n \n \n Non-Insurance related | \n \n \n 2024 | \n ||
| \n \n \n \n Derivatives (FVPL) \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 Assets designated as: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other derivatives | \n \n \n 20 | \n \n \n 348 | \n \n \n 14 | \n \n \n 8 | \n \n \n 390 | \n \n \n 66 | \n \n \n 477 | \n \n \n 53 | \n \n \n 10 | \n \n \n 606 | \n
| \n \n Fair value hedges | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n
| \n \n Cash flow hedges | \n \n \n - | \n \n \n 89 | \n \n \n - | \n \n \n - | \n \n \n 89 | \n \n \n - | \n \n \n 136 | \n \n \n - | \n \n \n - | \n \n \n 136 | \n
| \n \n Net foreign investment hedges | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 26 | \n \n \n 26 | \n
| \n \n Total derivative assets | \n \n \n 20 | \n \n \n 441 | \n \n \n 14 | \n \n \n 10 | \n \n \n 485 | \n \n \n 66 | \n \n \n 616 | \n \n \n 53 | \n \n \n 36 | \n \n \n 771 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Represented 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 - Aegon risk | \n \n \n - | \n \n \n 441 | \n \n \n - | \n \n \n 4 | \n \n \n 445 | \n \n \n - | \n \n \n 616 | \n \n \n - | \n \n \n 26 | \n \n \n 643 | \n
| \n \n Derivatives - Policyholder risk | \n \n \n 20 | \n \n \n - | \n \n \n 14 | \n \n \n 6 | \n \n \n 40 | \n \n \n 66 | \n \n \n - | \n \n \n 53 | \n \n \n 10 | \n \n \n 129 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Liabilities designated as: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other derivatives | \n \n \n 91 | \n \n \n 412 | \n \n \n 86 | \n \n \n 8 | \n \n \n 597 | \n \n \n 157 | \n \n \n 983 | \n \n \n 135 | \n \n \n 56 | \n \n \n 1,331 | \n
| \n \n 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 Cash flow hedges | \n \n \n - | \n \n \n 869 | \n \n \n - | \n \n \n - | \n \n \n 869 | \n \n \n - | \n \n \n 1,100 | \n \n \n - | \n \n \n - | \n \n \n 1,100 | \n
| \n \n Net foreign investment hedges | \n \n \n - | \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 | \n \n \n 2 | \n
| \n \n Total derivative liabilities | \n \n \n 91 | \n \n \n 1,283 | \n \n \n 86 | \n \n \n 8 | \n \n \n 1,469 | \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 Represented 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 - Aegon risk | \n \n \n - | \n \n \n 1,283 | \n \n \n - | \n \n \n 2 | \n \n \n 1,285 | \n \n \n - | \n \n \n 2,085 | \n \n \n - | \n \n \n 44 | \n \n \n 2,129 | \n
| \n \n Derivatives - Policyholder risk | \n \n \n 91 | \n \n \n - | \n \n \n 86 | \n \n \n 6 | \n \n \n 184 | \n \n \n 157 | \n \n \n - | \n \n \n 135 | \n \n \n 14 | \n \n \n 306 | \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 in the Contractual Service Margin. For more details see note 29.5 Risk\u00a0mitigation.
\n| \n | \n\n \n Derivative asset | \n \n \n Derivative liability | \n ||
| \n \n Derivatives not designated in a hedge - Aegon risk | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Derivatives held as an economic hedge | \n \n \n 350 | \n \n \n 477 | \n \n \n 339 | \n \n \n 954 | \n
| \n \n Bifurcated embedded derivatives | \n \n \n - | \n \n \n - | \n \n \n 75 | \n \n \n 71 | \n
| \n \n Total | \n \n \n 350 | \n \n \n 477 | \n \n \n 414 | \n \n \n 1,025 | \n
Aegon uses derivative instruments as part of its asset-liability risk management. These derivatives are classified as economic hedges when they do not qualify for hedge accounting or when Aegon opts not to apply it. Economic hedges address risks related to existing assets, liabilities, or future reinvestments. All hedges follow internal risk guidelines and are closely monitored for compliance. Derivatives embedded in financial liabilities (various institutional products) that are not closely related to the host contracts have been bifurcated and recorded at fair value.
\nAegon has entered into free-standing credit derivative transactions. The positions outstanding at the end of the year were:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||
| \n | \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 4 | \n \n \n - | \n
| \n \n AA | \n \n \n 26 | \n \n \n - | \n \n \n 111 | \n \n \n 1 | \n
| \n \n A | \n \n \n 699 | \n \n \n 1 | \n \n \n 1,233 | \n \n \n 16 | \n
| \n \n BBB | \n \n \n 934 | \n \n \n 25 | \n \n \n 2,310 | \n \n \n 50 | \n
| \n \n BB | \n \n \n 41 | \n \n \n - | \n \n \n 141 | \n \n \n 1 | \n
| \n \n B or lower | \n \n \n 62 | \n \n \n 1 | \n \n \n 51 | \n \n \n - | \n
| \n \n Total | \n \n \n 1,766 | \n \n \n 27 | \n \n \n 3,851 | \n \n \n 68 | \n
Aegon uses credit default swaps (CDS) to synthetically create bonds via Replication (Synthetic Asset) Transactions (RSAT).\u00a0This regulatory concept allows insurance companies to use a derivative alongside a cash investment to replicate the\u00a0characteristics of an otherwise permissible investment. There are three main types of RSAT transactions used by Aegon: single-asset replications, RSATs involving indices, and RSATs involving asset baskets.
\nAegon 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. No underlying principal amounts are exchanged.
Aegon has also entered into cross-currency interest rate swap agreements that convert certain foreign-currency fixed- and floating-rate assets and liabilities into US-dollar floating-rate assets and liabilities. These agreements include exchanging underlying principal amounts.
\nAegon has primarily entered into interest rate swap agreements that convert certain variable-rate assets and liabilities to a fixed-rate basis to more closely match the cash flows of assets and liabilities within Aegon\u2019s portfolio. No underlying principal amounts are exchanged. Aegon hedges its exposure to future cash flow variability from interest rate movements for hedges converting existing floating-rate assets and liabilities to fixed-rate assets, with maturities up to 19 years.
Aegon uses forward-starting interest rate swap agreements to hedge the variability in future cash flows associated with the\u00a0forecasted purchase of fixed-income assets. These agreements reduce the impact of future interest rate changes on the\u00a0forecasted transaction. Fair value adjustments for these interest rate swaps are deferred and recorded in equity until the\u00a0forecasted transaction occurs, at which time the swaps will be terminated. The accumulated gain\u00a0or\u00a0loss in equity will be amortized into investment income as the acquired asset affects income. Aegon hedges its exposure to future cash flow variability from interest rate movements for terms up to 18 years. The cash flows from these hedging instruments are\u00a0expected to affect the profit or loss for approximately the next 37 years. For the year ended December 31, 2025, the\u00a0contracts for which cash flow hedge accounting was terminated resulted in deferred gains of EUR 73 million (2024: EUR\u00a055 million), recognized directly in equity to be reclassified as net result during the period when the cash flows of the underlying hedged items occur. In 2025, 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 forecast transactions, at\u00a0which point the hedges were unwound.
In addition, Aegon uses cross-currency swaps to convert variable or fixed foreign-currency cash flows into fixed local-currency cash flows. The cash flows from these hedging instruments are expected to occur over the next 31 years. These\u00a0agreements include exchanging underlying principal amounts.
| \n \n \n \n Hedge ineffectiveness and reclassification of gains/(losses) \n | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Hedge ineffectiveness on cash flow hedges | \n \n \n 2 | \n \n \n - | \n \n \n 3 | \n
| \n \n Gains/(losses) reclassified from equity into the income statement | \n \n \n 27 | \n \n \n 42 | \n \n \n 20 | \n
| \n \n Expected deferred gain/(loss) to be reclassified from equity into net result during the next 12 months | \n \n \n 84 | \n \n \n 88 | \n \n \n 114 | \n
The periods when the contractual, undiscounted cash flows are expected to occur are as follows:
| \n \n 2025 | \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 | \n
| \n \n Cash inflows | \n \n \n 449 | \n \n \n 308 | \n \n \n 299 | \n \n \n 235 | \n \n \n 241 | \n \n \n 4,348 | \n \n \n 5,881 | \n
| \n \n Cash outflows | \n \n \n 436 | \n \n \n 280 | \n \n \n 237 | \n \n \n 221 | \n \n \n 223 | \n \n \n 7,828 | \n \n \n 9,224 | \n
| \n \n Net cash flows | \n \n \n 13 | \n \n \n 28 | \n \n \n 62 | \n \n \n 14 | \n \n \n 18 | \n \n \n \n \n (3,479) \n | \n \n \n \n \n (3,343) \n | \n
| \n \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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
Aegon 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 reflects 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.
\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 2025 | \n \n | \n\n | \n\n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n Maturity | \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 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\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\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 17 | \n \n \n 11 | \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\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 - | \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\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\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 3,770 | \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 3.08% | \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\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 185 | \n \n \n 1,271 | \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 1.14 | \n \n \n 1.13 | \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 USD/EUR | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 0.88 | \n \n \n 0.88 | \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 - | \n \n \n - | \n \n \n - | \n \n \n 0.74 | \n \n \n 0.76 | \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 - | \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\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\n | \n\n | \n\n | \n\n | \n
| \n \n Notional | \n \n \n 321 | \n \n \n 438 | \n \n \n - | \n \n \n - | \n \n \n - | \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 1.18 | \n \n \n 1.18 | \n \n \n - | \n \n \n - | \n \n \n - | \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 0.81 | \n \n \n 0.88 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 1.21 | \n \n \n 1.21 | \n \n \n - | \n \n \n - | \n \n \n - | \n
Hedging instruments recorded as \"Derivatives\" in the consolidated statement of financial position:
| \n | \n\n | \n\n | \n\n | \n\n \n 2025 | \n \n | \n\n | \n\n | \n\n \n 2024 | \n
| \n \n Carrying amounts | \n \n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n FV change1 | \n \n \n Notional | \n \n \n Assets | \n \n \n Liabilities | \n \n \n FV change1 | \n
| \n \n Fair value hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 28 | \n \n \n - | \n \n \n 3 | \n \n \n - | \n \n \n 32 | \n \n \n - | \n \n \n 3 | \n \n \n 2 | \n
| \n \n Foreign exchange contracts | \n \n \n 8 | \n \n \n 4 | \n \n \n - | \n \n \n 1 | \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\n | \n\n | \n\n | \n
| \n \n Interest rate contracts | \n \n \n 3,770 | \n \n \n 9 | \n \n \n 833 | \n \n \n 134 | \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 1,456 | \n \n \n 81 | \n \n \n 36 | \n \n \n \n \n (59) \n | \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\n | \n\n | \n\n | \n
| \n \n Foreign exchange - FX forward | \n \n \n 760 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 27 | \n \n \n 26 | \n \n \n 2 | \n \n \n - | \n
Hedged exposures covered by the above-described hedging instruments in the consolidated statement of financial position:
| \n | \n\n \n Carrying amounts | \n \n \n Accumulated amount 1 | \n \n | \n\n | \n||
| \n \n Fair value hedges | \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 FV change2 | \n
| \n \n 2025 | \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 57 | \n \n \n - | \n \n \n \n \n (17) \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 DPF | \n \n \n - | \n
| \n \n Synthetic Asset Fair value hedges | \n \n \n 241 | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n Investments | \n \n \n \n \n (13) \n | \n
| \n \n 2024 | \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 DPF | \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 2025 | \n \n | \n\n | \n\n \n 2024 | \n
| \n | \n\n \n FV change1 | \n \n \n Continuing2 | \n \n \n Discontinued2 | \n \n \n FV change1 | \n \n \n Continuing2 | \n \n \n Discontinued2 | \n
| \n \n Cash flow hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Synthetic Asset Cash flow hedges | \n \n \n 242 | \n \n \n 121 | \n \n \n - | \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 18 | \n \n \n \n \n (408) \n | \n \n \n \n \n (7) \n | \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 5 | \n \n \n \n \n (29) \n | \n \n \n 895 | \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 23 | \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 - | \n \n \n - | \n \n \n 3 | \n
| \n \n Net investment hedges | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments in foreign operations | \n \n \n - | \n \n \n \n \n (331) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (383) \n | \n \n \n - | \n
Counterparty default
Expected future transactions fail to occur as projected: the hedging instrument (that is, FSS) terms are already known and easily valued. However, the hedged item consists of one or more forecasted asset purchases for which we cannot precisely project the dates, coupon rates, and other underlying terms. Given the unknown variables in the hedged item, for the period during which the FSS remains in inventory and the forecasted transactions have not been completed, the hedged item portion of this relationship will be set up assuming identical dates and rates to those outlined in the hedging instrument.
When the forecasted transaction (that is, bond purchase) is completed and the terms of the underlying hedged item are known, hedge ineffectiveness would possibly arise if the timing of the asset being purchased differs from the unwind date of the swaps designated as the hedging instrument, or the coupon rate of the asset being purchased differs from the coupon rate on the receive leg of the swap, or a combination of both.
The hedge ineffectiveness would possibly arise if the timing of the asset being purchased differs from the unwind date of the swaps designated as the hedging instrument, or the coupon rate of the asset being purchased differs from the coupon rate on the receive leg of the swap, or a combination of both.
Mismatch of critical terms: If critical terms do not match between the hedged item and the hedged instrument, hedge ineffectiveness can arise.
Counterparty default
The counterpart default sources listed above indicate that if the counterparty fails to fulfill the contract, the hedge
will not\u00a0be highly effective. All derivatives in\u00a0this program are collateralized or cleared, so the impact from this credit risk
will not dominate the hedge relationship.
Regarding Fair value hedges, hedge ineffectiveness recognized in\u00a0the profit or loss on Interest rate contracts was EUR\u00a00\u00a0million in 2025 (2024: EUR (2) million).\u00a0The amount recognized in\u00a0the profit or loss as ineffectiveness of cash flow and\u00a0net investment hedges was 0 in 2025 (2024: 0).
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\u00a0net\u00a0position gains and losses. Refer to note 25 Shareholders' equity for more details on these items.
\nThe following table shows the reconciliation 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 2025 | \n \n \n 2024 | \n ||
| \n \n CDSs | \n \n \n Nominal amount | \n \n \n Fair value | \n \n \n Nominal amount | \n \n \n Fair value | \n
| \n \n On January 1 | \n \n \n 3,851 | \n \n \n 68 | \n \n \n 4,043 | \n \n \n 71 | \n
| \n \n Increase/(Decrease) during the year | \n \n \n \n \n (2,086) \n | \n \n \n \n \n (41) \n | \n \n \n \n \n (192) \n | \n \n \n \n \n (2) \n | \n
| \n \n On December 31 | \n \n \n 1,766 | \n \n \n 27 | \n \n \n 3,851 | \n \n \n 68 | \n
The information in this note 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 below presents the details relating to the effect (or potential effect) of enforceable master netting arrangements and similar netting arrangements, including rights to set-off, associated with the entity's recognized financial assets and financial liabilities.
| \n | \n\n \n Financial assets | \n \n \n Financial liabilities | \n ||
| \n \n Derivatives | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Gross amounts | \n \n \n 851 | \n \n \n 723 | \n \n \n 1,359 | \n \n \n 2,302 | \n
| \n \n Gross amounts set off in the statement of financial position | \n \n \n 10 | \n \n \n 5 | \n \n \n - | \n \n \n - | \n
| \n \n Net amounts presented in the statement of financial position | \n \n \n 841 | \n \n \n 718 | \n \n \n 1,359 | \n \n \n 2,302 | \n
| \n \n Financial instruments 1 | \n \n \n 369 | \n \n \n 628 | \n \n \n 710 | \n \n \n 1,537 | \n
| \n \n Cash collateral received (excluding surplus collateral) 1 | \n \n \n 66 | \n \n \n 81 | \n \n \n 602 | \n \n \n 710 | \n
| \n \n Net amount | \n \n \n 406 | \n \n \n 8 | \n \n \n 47 | \n \n \n 55 | \n
Financial assets and liabilities are offset in the statement of financial position when the Group has a legally enforceable right to offset and intends to settle the asset and the liability on a net basis, or to realize the asset and settle the liability simultaneously. As shown in the second row, there are EUR 10 million of Derivatives offset in 2025 (2024: EUR 5 million).
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 ISDA master netting agreements for each of Aegon\u2019s legal entities thereby facilitating Aegon\u2019s right to offset credit risk exposure. The credit support agreement will typically specify the threshold at which collateral must 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22186m14162p": { "value": "\n| \n | \n\n \n Joint ventures | \n \n \n Associates | \n ||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 1,503 | \n \n \n 1,430 | \n \n \n 3,122 | \n \n \n 2,906 | \n
| \n \n Additions | \n \n \n 1 | \n \n \n 1 | \n \n \n 81 | \n \n \n - | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (603) \n | \n \n \n \n \n (34) \n | \n
| \n \n Share in net income | \n \n \n 303 | \n \n \n 238 | \n \n \n 200 | \n \n \n 345 | \n
| \n \n \n \n Share in changes in equity (note 25.6) \n | \n \n \n 3 | \n \n \n \n \n (27) \n | \n \n \n 56 | \n \n \n 85 | \n
| \n \n Dividend | \n \n \n \n \n (185) \n | \n \n \n \n \n (141) \n | \n \n \n \n \n (215) \n | \n \n \n \n \n (199) \n | \n
| \n \n Net exchange difference | \n \n \n \n \n (59) \n | \n \n \n 1 | \n \n \n \n \n (3) \n | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19 | \n
| \n \n On December 31 | \n \n \n 1,566 | \n \n \n 1,503 | \n \n \n 2,638 | \n \n \n 3,122 | \n
The joint ventures and associates are accounted for using the equity method and are 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 4.5% on December 31, 2025 (2024: 4.2%) excluding an illiquidity premium (ILP) of 30 bps (2024: 30 bps) for the first 20 years and 20 bps thereafter (2024: 20 bps).
\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 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \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 30 | \n \n \n 62 | \n \n \n 436 | \n \n \n 66 | \n \n \n 72 | \n
| \n \n Other current assets | \n \n \n 57 | \n \n \n 63 | \n \n \n 764 | \n \n \n 744 | \n \n \n 2,315 | \n \n \n 1,055 | \n
| \n \n Total current assets | \n \n \n 87 | \n \n \n 93 | \n \n \n 827 | \n \n \n 1,180 | \n \n \n 2,381 | \n \n \n 1,127 | \n
| \n \n Non-current assets | \n \n \n 1,004 | \n \n \n 1,023 | \n \n \n 571 | \n \n \n 194 | \n \n \n 5,718 | \n \n \n 7,429 | \n
| \n \n Total assets | \n \n \n 1,091 | \n \n \n 1,116 | \n \n \n 1,398 | \n \n \n 1,374 | \n \n \n 8,099 | \n \n \n 8,556 | \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 3 | \n \n \n 4 | \n
| \n \n Other current liabilities | \n \n \n 231 | \n \n \n 53 | \n \n \n 374 | \n \n \n 350 | \n \n \n 596 | \n \n \n 452 | \n
| \n \n Total current liabilities | \n \n \n 231 | \n \n \n 53 | \n \n \n 374 | \n \n \n 350 | \n \n \n 599 | \n \n \n 456 | \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 61 | \n \n \n 66 | \n
| \n \n Other non-current liabilities | \n \n \n 236 | \n \n \n 406 | \n \n \n - | \n \n \n 38 | \n \n \n 6,160 | \n \n \n 6,874 | \n
| \n \n Total non-current financial liabilities | \n \n \n 236 | \n \n \n 406 | \n \n \n - | \n \n \n 38 | \n \n \n 6,221 | \n \n \n 6,941 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total liabilities | \n \n \n 467 | \n \n \n 459 | \n \n \n 374 | \n \n \n 388 | \n \n \n 6,820 | \n \n \n 7,397 | \n
| \n \n Net assets | \n \n \n 624 | \n \n \n 657 | \n \n \n 1,024 | \n \n \n 985 | \n \n \n 1,279 | \n \n \n 1,159 | \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 381 | \n \n \n 340 | \n \n \n 488 | \n \n \n 415 | \n \n \n 2,807 | \n \n \n 2,662 | \n
| \n \n Depreciation and amortization | \n \n \n \n \n (36) \n | \n \n \n \n \n (34) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (29) \n | \n \n \n \n \n (28) \n | \n
| \n \n Interest income | \n \n \n 6 | \n \n \n 6 | \n \n \n 27 | \n \n \n 18 | \n \n \n 166 | \n \n \n 128 | \n
| \n \n Interest expense | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (4) \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 Profit or loss | \n \n \n 101 | \n \n \n 95 | \n \n \n 257 | \n \n \n 280 | \n \n \n 435 | \n \n \n 272 | \n
| \n \n Income tax (expense) or income | \n \n \n \n \n (25) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (71) \n | \n \n \n \n \n (78) \n | \n \n \n \n \n (100) \n | \n \n \n \n \n (80) \n | \n
| \n \n \n \n Post-tax profit or (loss) \n | \n \n \n 76 | \n \n \n 74 | \n \n \n 186 | \n \n \n 202 | \n \n \n 335 | \n \n \n 192 | \n
| \n \n Other comprehensive income | \n \n \n 3 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n \n \n (134) \n | \n
| \n \n Total comprehensive income | \n \n \n 79 | \n \n \n 78 | \n \n \n 186 | \n \n \n 202 | \n \n \n 340 | \n \n \n 58 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 57 | \n \n \n 53 | \n \n \n 34 | \n \n \n 29 | \n \n \n 95 | \n \n \n 59 | \n
An overview of the summarized financial information of the carrying amount of the joint ventures (JVs), and results of the JVs based on\u00a0the Group\u2019s relative holding are as follows:
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Net assets of JVs as presented above | \n \n \n 624 | \n \n \n 657 | \n \n \n 1,024 | \n \n \n 985 | \n \n \n 1,279 | \n \n \n 1,159 | \n
| \n \n Net assets of JVs excluding goodwill | \n \n \n 545 | \n \n \n 577 | \n \n \n 1,024 | \n \n \n 985 | \n \n \n 1,160 | \n \n \n 1,040 | \n
| \n \n Group share of net assets of JVs, excluding goodwill | \n \n \n 278 | \n \n \n 294 | \n \n \n 502 | \n \n \n 483 | \n \n \n 588 | \n \n \n 526 | \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 119 | \n \n \n 120 | \n
| \n \n Carrying amount | \n \n \n 357 | \n \n \n 374 | \n \n \n 502 | \n \n \n 483 | \n \n \n 707 | \n \n \n 646 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Group share of post-tax profit or loss | \n \n \n 39 | \n \n \n 38 | \n \n \n 91 | \n \n \n 99 | \n \n \n 174 | \n \n \n 101 | \n
| \n \n Group share of other comprehensive income | \n \n \n 2 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (67) \n | \n
| \n \n Group share of Total comprehensive income | \n \n \n 40 | \n \n \n 40 | \n \n \n 91 | \n \n \n 99 | \n \n \n 176 | \n \n \n 35 | \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.
\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 Seguradora 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22191m14163p": { "value": "\n| \n | \n\n \n Joint ventures | \n \n \n Associates | \n ||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 1,503 | \n \n \n 1,430 | \n \n \n 3,122 | \n \n \n 2,906 | \n
| \n \n Additions | \n \n \n 1 | \n \n \n 1 | \n \n \n 81 | \n \n \n - | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (603) \n | \n \n \n \n \n (34) \n | \n
| \n \n Share in net income | \n \n \n 303 | \n \n \n 238 | \n \n \n 200 | \n \n \n 345 | \n
| \n \n \n \n Share in changes in equity (note 25.6) \n | \n \n \n 3 | \n \n \n \n \n (27) \n | \n \n \n 56 | \n \n \n 85 | \n
| \n \n Dividend | \n \n \n \n \n (185) \n | \n \n \n \n \n (141) \n | \n \n \n \n \n (215) \n | \n \n \n \n \n (199) \n | \n
| \n \n Net exchange difference | \n \n \n \n \n (59) \n | \n \n \n 1 | \n \n \n \n \n (3) \n | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19 | \n
| \n \n On December 31 | \n \n \n 1,566 | \n \n \n 1,503 | \n \n \n 2,638 | \n \n \n 3,122 | \n
The disposals of associates mainly reflects the reduction of investments in ASR Nederlands N.V. (a.s.r.) from 29.96% to 24.12%, as well as Aegon's participation in a.s.r. share buyback programs.
The joint ventures and associates are accounted for using the equity method and are 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.
\nThe following tables reflect the condensed statement of financial position and income statement of Aegon's material associate ASR Nederland N.V. (a.s.r.) at 100%. a.s.r. is a listed company in the Netherlands in which Aegon holds a stake of\u00a024.12% as at December\u00a031, 2025.\u00a0\u00a0
| \n | \n\n \n a.s.r. | \n |
| \n \n Summarized statement of financial position | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Investments | \n \n \n 79,124 | \n \n \n 80,484 | \n
| \n \n Derivatives | \n \n \n 15,905 | \n \n \n 11,767 | \n
| \n \n Other assets | \n \n \n 47,326 | \n \n \n 46,457 | \n
| \n \n Total assets | \n \n \n 142,355 | \n \n \n 138,709 | \n
| \n | \n\n | \n\n | \n
| \n \n Insurance liabilities | \n \n \n 101,431 | \n \n \n 102,723 | \n
| \n \n Borrowings and subordinated liabilities | \n \n \n 4,802 | \n \n \n 5,140 | \n
| \n \n Derivatives | \n \n \n 15,453 | \n \n \n 8,666 | \n
| \n \n Other liabilities | \n \n \n 10,405 | \n \n \n 12,293 | \n
| \n \n Total liabilities | \n \n \n 132,091 | \n \n \n 128,822 | \n
| \n \n Non-controlling interest | \n \n \n 13 | \n \n \n 47 | \n
| \n \n Other equity instruments | \n \n \n 1,477 | \n \n \n 977 | \n
| \n \n Total other equity components | \n \n \n 1,490 | \n \n \n 1,024 | \n
| \n \n Net assets | \n \n \n 8,774 | \n \n \n 8,863 | \n
| \n | \n\n \n a.s.r. | \n |
| \n \n Summarized statement of comprehensive income | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Insurance revenues | \n \n \n 10,342 | \n \n \n 9,601 | \n
| \n \n Insurance service result | \n \n \n 765 | \n \n \n 772 | \n
| \n | \n\n | \n\n | \n
| \n \n Profit or loss from continuing operations | \n \n \n 808 | \n \n \n 1,418 | \n
| \n \n Income tax expense or income | \n \n \n \n \n (159) \n | \n \n \n \n \n (375) \n | \n
| \n \n Post-tax profit or loss from continuing operations | \n \n \n 649 | \n \n \n 1,043 | \n
| \n | \n\n | \n\n | \n
| \n \n Post-tax profit or loss from discontinued operations | \n \n \n - | \n \n \n 35 | \n
| \n \n Other comprehensive income - that will not be recycled to profit or loss | \n \n \n 228 | \n \n \n 283 | \n
| \n \n Total comprehensive income | \n \n \n 877 | \n \n \n 1,361 | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 200 | \n \n \n 188 | \n
| \n \n Group share | \n \n \n 24.12% | \n \n \n 29.95% | \n
| \n \n Group share of post-tax profit or loss | \n \n \n 178 | \n \n \n 325 | \n
| \n \n Group share of other comprehensive income | \n \n \n 56 | \n \n \n 85 | \n
| \n \n Carrying amount of investment in a.s.r. | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Net assets of a.s.r. as presented above | \n \n \n 8,774 | \n \n \n 8,863 | \n
| \n \n Net assets of a.s.r. excluding goodwill, fair value adjustments and other equity transactions | \n \n \n 8,723 | \n \n \n 8,827 | \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 2,104 | \n \n \n 2,644 | \n
| \n \n Fair value adjustments | \n \n \n 66 | \n \n \n 50 | \n
| \n \n Goodwill on acquisition | \n \n \n 94 | \n \n \n 117 | \n
| \n \n On December 31 | \n \n \n 2,264 | \n \n \n 2,811 | \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 number of shares held on the reporting date.\u00a0The fair value of Aegon's stake in a.s.r. is EUR 2,992 million (2024: EUR 2,864 million).
The following table includes associates that Aegon considered immaterial.
| \n | \n\n \n Other Associates | \n |
| \n \n Summarized statement of financial position | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Current assets | \n \n \n 495 | \n \n \n 501 | \n
| \n \n Non-current assets | \n \n \n 1,090 | \n \n \n 732 | \n
| \n \n Total assets | \n \n \n 1,585 | \n \n \n 1,233 | \n
| \n | \n\n | \n\n | \n
| \n \n Current liabilities | \n \n \n 308 | \n \n \n 343 | \n
| \n \n Non-current liabilities | \n \n \n 10 | \n \n \n 25 | \n
| \n \n Total current liabilities | \n \n \n 319 | \n \n \n 369 | \n
| \n | \n\n | \n\n | \n
| \n \n Net assets | \n \n \n 1,266 | \n \n \n 864 | \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 92 | \n \n \n 86 | \n
| \n \n Other comprehensive income | \n \n \n - | \n \n \n - | \n
| \n \n Total comprehensive income | \n \n \n 92 | \n \n \n 86 | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 15 | \n \n \n 11 | \n
| \n \n Carrying amount | \n \n \n 374 | \n \n \n 311 | \n
The principal investments in associates are listed by geographical segment.\u00a0The voting powers in these associates are equal to\u00a0the shareholdings, unless stated otherwise.
\nDawn Holdings LLC, Wilmington, Delaware (United States) (19.99%)
ASR Nederland N.V., Utrecht (24.12%)
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 to the Audit and Risk Committee and the ESG Committee, subject to certain conditions.
For as long as Aegon holds more than 20% of the shares, the affirmative vote of the Non-independent 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 following needs the unanimous vote of all Supervisory Directors in office and the affirmative vote of the Non-independent 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 between 10% and 20% of the\u00a0shares.\u00a0If Aegon holds less than 10%, the relationship agreement from which the abovementioned rights derive is automatically terminated.
\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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22260m14195p": { "value": "\n| \n | \n\n \n Joint ventures | \n \n \n Associates | \n ||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 1,503 | \n \n \n 1,430 | \n \n \n 3,122 | \n \n \n 2,906 | \n
| \n \n Additions | \n \n \n 1 | \n \n \n 1 | \n \n \n 81 | \n \n \n - | \n
| \n \n Disposals | \n \n \n - | \n \n \n - | \n \n \n \n \n (603) \n | \n \n \n \n \n (34) \n | \n
| \n \n Share in net income | \n \n \n 303 | \n \n \n 238 | \n \n \n 200 | \n \n \n 345 | \n
| \n \n \n \n Share in changes in equity (note 25.6) \n | \n \n \n 3 | \n \n \n \n \n (27) \n | \n \n \n 56 | \n \n \n 85 | \n
| \n \n Dividend | \n \n \n \n \n (185) \n | \n \n \n \n \n (141) \n | \n \n \n \n \n (215) \n | \n \n \n \n \n (199) \n | \n
| \n \n Net exchange difference | \n \n \n \n \n (59) \n | \n \n \n 1 | \n \n \n \n \n (3) \n | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 19 | \n
| \n \n On December 31 | \n \n \n 1,566 | \n \n \n 1,503 | \n \n \n 2,638 | \n \n \n 3,122 | \n
The disposals of associates mainly reflects the reduction of investments in ASR Nederlands N.V. (a.s.r.) from 29.96% to 24.12%, as well as Aegon's participation in a.s.r. share buyback programs.
The joint ventures and associates are accounted for using the equity method and are 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 4.5% on December 31, 2025 (2024: 4.2%) excluding an illiquidity premium (ILP) of 30 bps (2024: 30 bps) for the first 20 years and 20 bps thereafter (2024: 20 bps).
\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 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \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 30 | \n \n \n 62 | \n \n \n 436 | \n \n \n 66 | \n \n \n 72 | \n
| \n \n Other current assets | \n \n \n 57 | \n \n \n 63 | \n \n \n 764 | \n \n \n 744 | \n \n \n 2,315 | \n \n \n 1,055 | \n
| \n \n Total current assets | \n \n \n 87 | \n \n \n 93 | \n \n \n 827 | \n \n \n 1,180 | \n \n \n 2,381 | \n \n \n 1,127 | \n
| \n \n Non-current assets | \n \n \n 1,004 | \n \n \n 1,023 | \n \n \n 571 | \n \n \n 194 | \n \n \n 5,718 | \n \n \n 7,429 | \n
| \n \n Total assets | \n \n \n 1,091 | \n \n \n 1,116 | \n \n \n 1,398 | \n \n \n 1,374 | \n \n \n 8,099 | \n \n \n 8,556 | \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 3 | \n \n \n 4 | \n
| \n \n Other current liabilities | \n \n \n 231 | \n \n \n 53 | \n \n \n 374 | \n \n \n 350 | \n \n \n 596 | \n \n \n 452 | \n
| \n \n Total current liabilities | \n \n \n 231 | \n \n \n 53 | \n \n \n 374 | \n \n \n 350 | \n \n \n 599 | \n \n \n 456 | \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 61 | \n \n \n 66 | \n
| \n \n Other non-current liabilities | \n \n \n 236 | \n \n \n 406 | \n \n \n - | \n \n \n 38 | \n \n \n 6,160 | \n \n \n 6,874 | \n
| \n \n Total non-current financial liabilities | \n \n \n 236 | \n \n \n 406 | \n \n \n - | \n \n \n 38 | \n \n \n 6,221 | \n \n \n 6,941 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total liabilities | \n \n \n 467 | \n \n \n 459 | \n \n \n 374 | \n \n \n 388 | \n \n \n 6,820 | \n \n \n 7,397 | \n
| \n \n Net assets | \n \n \n 624 | \n \n \n 657 | \n \n \n 1,024 | \n \n \n 985 | \n \n \n 1,279 | \n \n \n 1,159 | \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 381 | \n \n \n 340 | \n \n \n 488 | \n \n \n 415 | \n \n \n 2,807 | \n \n \n 2,662 | \n
| \n \n Depreciation and amortization | \n \n \n \n \n (36) \n | \n \n \n \n \n (34) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (29) \n | \n \n \n \n \n (28) \n | \n
| \n \n Interest income | \n \n \n 6 | \n \n \n 6 | \n \n \n 27 | \n \n \n 18 | \n \n \n 166 | \n \n \n 128 | \n
| \n \n Interest expense | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (4) \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 Profit or loss | \n \n \n 101 | \n \n \n 95 | \n \n \n 257 | \n \n \n 280 | \n \n \n 435 | \n \n \n 272 | \n
| \n \n Income tax (expense) or income | \n \n \n \n \n (25) \n | \n \n \n \n \n (21) \n | \n \n \n \n \n (71) \n | \n \n \n \n \n (78) \n | \n \n \n \n \n (100) \n | \n \n \n \n \n (80) \n | \n
| \n \n \n \n Post-tax profit or (loss) \n | \n \n \n 76 | \n \n \n 74 | \n \n \n 186 | \n \n \n 202 | \n \n \n 335 | \n \n \n 192 | \n
| \n \n Other comprehensive income | \n \n \n 3 | \n \n \n 4 | \n \n \n - | \n \n \n - | \n \n \n 5 | \n \n \n \n \n (134) \n | \n
| \n \n Total comprehensive income | \n \n \n 79 | \n \n \n 78 | \n \n \n 186 | \n \n \n 202 | \n \n \n 340 | \n \n \n 58 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 57 | \n \n \n 53 | \n \n \n 34 | \n \n \n 29 | \n \n \n 95 | \n \n \n 59 | \n
An overview of the summarized financial information of the carrying amount of the joint ventures (JVs), and results of the JVs based on\u00a0the Group\u2019s relative holding are as follows:
| \n | \n\n \n Santander Spain Life | \n \n \n AIFMC | \n \n \n Other Joint ventures | \n |||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Net assets of JVs as presented above | \n \n \n 624 | \n \n \n 657 | \n \n \n 1,024 | \n \n \n 985 | \n \n \n 1,279 | \n \n \n 1,159 | \n
| \n \n Net assets of JVs excluding goodwill | \n \n \n 545 | \n \n \n 577 | \n \n \n 1,024 | \n \n \n 985 | \n \n \n 1,160 | \n \n \n 1,040 | \n
| \n \n Group share of net assets of JVs, excluding goodwill | \n \n \n 278 | \n \n \n 294 | \n \n \n 502 | \n \n \n 483 | \n \n \n 588 | \n \n \n 526 | \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 119 | \n \n \n 120 | \n
| \n \n Carrying amount | \n \n \n 357 | \n \n \n 374 | \n \n \n 502 | \n \n \n 483 | \n \n \n 707 | \n \n \n 646 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Group share of post-tax profit or loss | \n \n \n 39 | \n \n \n 38 | \n \n \n 91 | \n \n \n 99 | \n \n \n 174 | \n \n \n 101 | \n
| \n \n Group share of other comprehensive income | \n \n \n 2 | \n \n \n 2 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n \n \n (67) \n | \n
| \n \n Group share of Total comprehensive income | \n \n \n 40 | \n \n \n 40 | \n \n \n 91 | \n \n \n 99 | \n \n \n 176 | \n \n \n 35 | \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.
\nThe following tables reflect the condensed statement of financial position and income statement of Aegon's material associate ASR Nederland N.V. (a.s.r.) at 100%. a.s.r. is a listed company in the Netherlands in which Aegon holds a stake of\u00a024.12% as at December\u00a031, 2025.\u00a0\u00a0
| \n | \n\n \n a.s.r. | \n |
| \n \n Summarized statement of financial position | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Investments | \n \n \n 79,124 | \n \n \n 80,484 | \n
| \n \n Derivatives | \n \n \n 15,905 | \n \n \n 11,767 | \n
| \n \n Other assets | \n \n \n 47,326 | \n \n \n 46,457 | \n
| \n \n Total assets | \n \n \n 142,355 | \n \n \n 138,709 | \n
| \n | \n\n | \n\n | \n
| \n \n Insurance liabilities | \n \n \n 101,431 | \n \n \n 102,723 | \n
| \n \n Borrowings and subordinated liabilities | \n \n \n 4,802 | \n \n \n 5,140 | \n
| \n \n Derivatives | \n \n \n 15,453 | \n \n \n 8,666 | \n
| \n \n Other liabilities | \n \n \n 10,405 | \n \n \n 12,293 | \n
| \n \n Total liabilities | \n \n \n 132,091 | \n \n \n 128,822 | \n
| \n \n Non-controlling interest | \n \n \n 13 | \n \n \n 47 | \n
| \n \n Other equity instruments | \n \n \n 1,477 | \n \n \n 977 | \n
| \n \n Total other equity components | \n \n \n 1,490 | \n \n \n 1,024 | \n
| \n \n Net assets | \n \n \n 8,774 | \n \n \n 8,863 | \n
| \n | \n\n \n a.s.r. | \n |
| \n \n Summarized statement of comprehensive income | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Insurance revenues | \n \n \n 10,342 | \n \n \n 9,601 | \n
| \n \n Insurance service result | \n \n \n 765 | \n \n \n 772 | \n
| \n | \n\n | \n\n | \n
| \n \n Profit or loss from continuing operations | \n \n \n 808 | \n \n \n 1,418 | \n
| \n \n Income tax expense or income | \n \n \n \n \n (159) \n | \n \n \n \n \n (375) \n | \n
| \n \n Post-tax profit or loss from continuing operations | \n \n \n 649 | \n \n \n 1,043 | \n
| \n | \n\n | \n\n | \n
| \n \n Post-tax profit or loss from discontinued operations | \n \n \n - | \n \n \n 35 | \n
| \n \n Other comprehensive income - that will not be recycled to profit or loss | \n \n \n 228 | \n \n \n 283 | \n
| \n \n Total comprehensive income | \n \n \n 877 | \n \n \n 1,361 | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 200 | \n \n \n 188 | \n
| \n \n Group share | \n \n \n 24.12% | \n \n \n 29.95% | \n
| \n \n Group share of post-tax profit or loss | \n \n \n 178 | \n \n \n 325 | \n
| \n \n Group share of other comprehensive income | \n \n \n 56 | \n \n \n 85 | \n
| \n \n Carrying amount of investment in a.s.r. | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Net assets of a.s.r. as presented above | \n \n \n 8,774 | \n \n \n 8,863 | \n
| \n \n Net assets of a.s.r. excluding goodwill, fair value adjustments and other equity transactions | \n \n \n 8,723 | \n \n \n 8,827 | \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 2,104 | \n \n \n 2,644 | \n
| \n \n Fair value adjustments | \n \n \n 66 | \n \n \n 50 | \n
| \n \n Goodwill on acquisition | \n \n \n 94 | \n \n \n 117 | \n
| \n \n On December 31 | \n \n \n 2,264 | \n \n \n 2,811 | \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 number of shares held on the reporting date.\u00a0The fair value of Aegon's stake in a.s.r. is EUR 2,992 million (2024: EUR 2,864 million).
The following table includes associates that Aegon considered immaterial.
| \n | \n\n \n Other Associates | \n |
| \n \n Summarized statement of financial position | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Current assets | \n \n \n 495 | \n \n \n 501 | \n
| \n \n Non-current assets | \n \n \n 1,090 | \n \n \n 732 | \n
| \n \n Total assets | \n \n \n 1,585 | \n \n \n 1,233 | \n
| \n | \n\n | \n\n | \n
| \n \n Current liabilities | \n \n \n 308 | \n \n \n 343 | \n
| \n \n Non-current liabilities | \n \n \n 10 | \n \n \n 25 | \n
| \n \n Total current liabilities | \n \n \n 319 | \n \n \n 369 | \n
| \n | \n\n | \n\n | \n
| \n \n Net assets | \n \n \n 1,266 | \n \n \n 864 | \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 92 | \n \n \n 86 | \n
| \n \n Other comprehensive income | \n \n \n - | \n \n \n - | \n
| \n \n Total comprehensive income | \n \n \n 92 | \n \n \n 86 | \n
| \n | \n\n | \n\n | \n
| \n \n Dividends received | \n \n \n 15 | \n \n \n 11 | \n
| \n \n Carrying amount | \n \n \n 374 | \n \n \n 311 | \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 Seguradora 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 are equal to\u00a0the shareholdings, unless stated otherwise.
\nDawn Holdings LLC, Wilmington, Delaware (United States) (19.99%)
ASR Nederland N.V., Utrecht (24.12%)
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 to the Audit and Risk Committee and the ESG Committee, subject to certain conditions.
For as long as Aegon holds more than 20% of the shares, the affirmative vote of the Non-independent 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 following needs the unanimous vote of all Supervisory Directors in office and the affirmative vote of the Non-independent 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 between 10% and 20% of the\u00a0shares.\u00a0If Aegon holds less than 10%, the relationship agreement from which the abovementioned rights derive is automatically terminated.
\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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22259m14194p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Real estate held for own use | \n \n \n 56 | \n \n \n 66 | \n
| \n \n Equipment | \n \n \n 144 | \n \n \n 170 | \n
| \n \n On December 31 | \n \n \n 200 | \n \n \n 236 | \n
General account real estate held for own use has not been pledged as security for liabilities, nor are there any restrictions on\u00a0title. The useful lives of\u00a0buildings range between 40 and 50 years.
None of the equipment is held for lease (2024: none). Equipment has not been pledged as security for liabilities, nor are there any restrictions on title. Equipment is generally depreciated over three to five years.
Depreciation expenses are included in Administration expenses in note\u00a013 Other operating expenses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22203m14170p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Receivables from policyholders | \n \n \n 132 | \n \n \n 118 | \n
| \n \n Receivables from brokers and agents | \n \n \n 306 | \n \n \n 270 | \n
| \n \n Cash outstanding from assets sold | \n \n \n 394 | \n \n \n 176 | \n
| \n \n Trade receivables | \n \n \n 475 | \n \n \n 654 | \n
| \n \n Cash collateral | \n \n \n 455 | \n \n \n 515 | \n
| \n \n Income tax receivable | \n \n \n 146 | \n \n \n 286 | \n
| \n \n Other | \n \n \n 1,581 | \n \n \n 1,828 | \n
| \n \n Expected credit losses | \n \n \n \n \n (17) \n | \n \n \n \n \n (18) \n | \n
| \n \n On December 31 | \n \n \n 3,472 | \n \n \n 3,830 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 3,352 | \n \n \n 3,736 | \n
| \n \n Non-current | \n \n \n 121 | \n \n \n 94 | \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 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n \n \n (18) \n | \n \n \n \n \n (10) \n | \n
| \n \n Expected credit losses | \n \n \n \n \n (6) \n | \n \n \n \n \n (9) \n | \n
| \n \n Other movements | \n \n \n 7 | \n \n \n 1 | \n
| \n \n On December 31 | \n \n \n \n \n (17) \n | \n \n \n \n \n (18) \n | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Accrued interest | \n \n \n 700 | \n \n \n 812 | \n
| \n \n On December 31 | \n \n \n 700 | \n \n \n 812 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 700 | \n \n \n 812 | \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 On January 1, 2025 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
| \n \n Additions | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n 1 | \n \n \n 13 | \n
| \n \n Amortization through income statement | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (32) \n | \n
| \n \n Acquisitions through business combinations | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n 4 | \n
| \n \n Other movements | \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 (34) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (40) \n | \n
| \n \n On December 31, 2025 | \n \n \n 313 | \n \n \n 105 | \n \n \n 49 | \n \n \n 52 | \n \n \n 519 | \n
| \n \n Gross carrying value | \n \n \n 426 | \n \n \n 289 | \n \n \n 94 | \n \n \n 96 | \n \n \n 906 | \n
| \n \n Accumulated amortization and impairment | \n \n \n \n \n (113) \n | \n \n \n \n \n (184) \n | \n \n \n \n \n (45) \n | \n \n \n \n \n (44) \n | \n \n \n \n \n (387) \n | \n
| \n \n Net book value | \n \n \n 313 | \n \n \n 105 | \n \n \n 49 | \n \n \n 52 | \n \n \n 519 | \n
| \n | \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 and impairment | \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 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
The economic assumptions underlying all calculations are based on observable market data and projections of future trends. All cash-generating units tested showed that their recoverable amounts exceeded their carrying values, including goodwill. A\u00a0reasonably possible change in any key assumption is not expected to cause the carrying value of the cash-generating units to exceed their recoverable amount.
The goodwill balance has been allocated to the cash-generating units 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\u00a0recoverable amount of cash-generating unit is the higher of its value in use and its fair value less costs of disposal. The\u00a0operating 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 2025 | \n \n \n 2024 | \n
| \n \n Americas | \n \n \n 189 | \n \n \n 215 | \n
| \n \n United Kingdom | \n \n \n 79 | \n \n \n 81 | \n
| \n \n Asset Management | \n \n \n 45 | \n \n \n 49 | \n
| \n \n On December 31 | \n \n \n 313 | \n \n \n 345 | \n
Within the 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 (SPGAs). 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\u00a0market value of liabilities. The EAC is reflective of market conditions where a pre-tax benchmark discount rate ranged from\u00a0approximately 3.46% to 4.17% from the one-month to 30-year tenors.
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 future services. Based on the value-in-use tests, Transamerica\u2019s goodwill for the group of annuities cash-generating units (2025: EUR 121 million; 2024: EUR 137 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 (2025: EUR 68 million; 2024: EUR 77 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 Nationwide (Origen) goodwill and the Barrington Hamilton (Origen) goodwill, the cash-generating unit is Origen Financial Services Limited.
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\u00a01,375 million headroom.
For Nationwide (Origen) and Barrington Hamilton (Origen) goodwill, this relies on the underlying value in use calculation for Origen Financial Services limited (OFSL). The value-in-use calculation employs a standard model. The headroom at year-end was EUR\u00a0103\u00a0million for Nationwide and EUR 228 million for Barrington Hamilton.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22243m14187p": { "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 On January 1, 2025 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
| \n \n Additions | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n 1 | \n \n \n 13 | \n
| \n \n Amortization through income statement | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (32) \n | \n
| \n \n Acquisitions through business combinations | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n 4 | \n
| \n \n Other movements | \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 (34) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (40) \n | \n
| \n \n On December 31, 2025 | \n \n \n 313 | \n \n \n 105 | \n \n \n 49 | \n \n \n 52 | \n \n \n 519 | \n
| \n \n Gross carrying value | \n \n \n 426 | \n \n \n 289 | \n \n \n 94 | \n \n \n 96 | \n \n \n 906 | \n
| \n \n Accumulated amortization and impairment | \n \n \n \n \n (113) \n | \n \n \n \n \n (184) \n | \n \n \n \n \n (45) \n | \n \n \n \n \n (44) \n | \n \n \n \n \n (387) \n | \n
| \n \n Net book value | \n \n \n 313 | \n \n \n 105 | \n \n \n 49 | \n \n \n 52 | \n \n \n 519 | \n
| \n | \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 and impairment | \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 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
Amortization through income statement is included in note\u00a013 Other operating expenses. None of the intangible assets has titles that are restricted or has been pledged as security for liabilities.
With the exception of goodwill, all intangible assets within the 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 range between 10 and 30 years. As at December 31, 2025 10 years remain (2024: 11 years). Software is generally depreciated over an average period of three to five years (no changes compared to 2024).
\nThe economic assumptions underlying all calculations are based on observable market data and projections of future trends. All cash-generating units tested showed that their recoverable amounts exceeded their carrying values, including goodwill. A\u00a0reasonably possible change in any key assumption is not expected to cause the carrying value of the cash-generating units to exceed their recoverable amount.
The goodwill balance has been allocated to the cash-generating units 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\u00a0recoverable amount of cash-generating unit is the higher of its value in use and its fair value less costs of disposal. The\u00a0operating 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 2025 | \n \n \n 2024 | \n
| \n \n Americas | \n \n \n 189 | \n \n \n 215 | \n
| \n \n United Kingdom | \n \n \n 79 | \n \n \n 81 | \n
| \n \n Asset Management | \n \n \n 45 | \n \n \n 49 | \n
| \n \n On December 31 | \n \n \n 313 | \n \n \n 345 | \n
Within the 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 (SPGAs). 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\u00a0market value of liabilities. The EAC is reflective of market conditions where a pre-tax benchmark discount rate ranged from\u00a0approximately 3.46% to 4.17% from the one-month to 30-year tenors.
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 future services. Based on the value-in-use tests, Transamerica\u2019s goodwill for the group of annuities cash-generating units (2025: EUR 121 million; 2024: EUR 137 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 (2025: EUR 68 million; 2024: EUR 77 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 Nationwide (Origen) goodwill and the Barrington Hamilton (Origen) goodwill, the cash-generating unit is Origen Financial Services Limited.
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\u00a01,375 million headroom.
For Nationwide (Origen) and Barrington Hamilton (Origen) goodwill, this relies on the underlying value in use calculation for Origen Financial Services limited (OFSL). The value-in-use calculation employs a standard model. The headroom at year-end was EUR\u00a0103\u00a0million for Nationwide and EUR 228 million for Barrington Hamilton.
\nThese primarily reflect Aegon Asset Management mandates added in 2023. These rights have a remaining amortization period of 7.5\u00a0years and a carrying amount of EUR 93 million on December 31, 2025 (2024: EUR 104 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22299m14212p": { "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 On January 1, 2025 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
| \n \n Additions | \n \n \n - | \n \n \n - | \n \n \n 12 | \n \n \n 1 | \n \n \n 13 | \n
| \n \n Amortization through income statement | \n \n \n - | \n \n \n \n \n (14) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (6) \n | \n \n \n \n \n (32) \n | \n
| \n \n Acquisitions through business combinations | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n 4 | \n
| \n \n Other movements | \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 (34) \n | \n \n \n \n \n (2) \n | \n \n \n \n \n (1) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (40) \n | \n
| \n \n On December 31, 2025 | \n \n \n 313 | \n \n \n 105 | \n \n \n 49 | \n \n \n 52 | \n \n \n 519 | \n
| \n \n Gross carrying value | \n \n \n 426 | \n \n \n 289 | \n \n \n 94 | \n \n \n 96 | \n \n \n 906 | \n
| \n \n Accumulated amortization and impairment | \n \n \n \n \n (113) \n | \n \n \n \n \n (184) \n | \n \n \n \n \n (45) \n | \n \n \n \n \n (44) \n | \n \n \n \n \n (387) \n | \n
| \n \n Net book value | \n \n \n 313 | \n \n \n 105 | \n \n \n 49 | \n \n \n 52 | \n \n \n 519 | \n
| \n | \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 and impairment | \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 | \n \n \n 345 | \n \n \n 120 | \n \n \n 51 | \n \n \n 58 | \n \n \n 575 | \n
Amortization through income statement is included in note\u00a013 Other operating expenses. None of the intangible assets has titles that are restricted or has been pledged as security for liabilities.
With the exception of goodwill, all intangible assets within the 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 range between 10 and 30 years. As at December 31, 2025 10 years remain (2024: 11 years). Software is generally depreciated over an average period of three to five years (no changes compared to 2024).
\nThese primarily reflect Aegon Asset Management mandates added in 2023. These rights have a remaining amortization period of 7.5\u00a0years and a carrying amount of EUR 93 million on December 31, 2025 (2024: EUR 104 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21449m13903p": { "value": "\nIssued share capital and reserves attributable to shareholders of Aegon Ltd.
| \n | \n\n \n Note | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Share capital - par value | \n \n \n 25.1 | \n \n \n 229 | \n \n \n 241 | \n \n \n 265 | \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 7,082 | \n \n \n 7,094 | \n \n \n 7,118 | \n
| \n \n Retained earnings | \n \n | \n\n \n 4,238 | \n \n \n 4,347 | \n \n \n 5,099 | \n
| \n \n Treasury shares | \n \n \n 25.3 | \n \n \n \n \n (447) \n | \n \n \n \n \n (398) \n | \n \n \n \n \n (346) \n | \n
| \n \n Total retained earnings | \n \n | \n\n \n 3,792 | \n \n \n 3,949 | \n \n \n 4,753 | \n
| \n \n Revaluation reserves | \n \n \n 25.4 | \n \n \n \n \n (2,519) \n | \n \n \n \n \n (3,706) \n | \n \n \n \n \n (3,770) \n | \n
| \n \n Remeasurement of defined benefit plans | \n \n \n 25.5 | \n \n \n \n \n (966) \n | \n \n \n \n \n (1,072) \n | \n \n \n \n \n (1,006) \n | \n
| \n \n Other reserves | \n \n \n 25.6 | \n \n \n 43 | \n \n \n 951 | \n \n \n 379 | \n
| \n \n Total shareholders' equity | \n \n | \n\n \n 7,432 | \n \n \n 7,215 | \n \n \n 7,475 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Common shares | \n \n \n 189 | \n \n \n 198 | \n \n \n 218 | \n
| \n \n Common shares B | \n \n \n 40 | \n \n \n 42 | \n \n \n 47 | \n
| \n \n On December 31 | \n \n \n 229 | \n \n \n 241 | \n \n \n 265 | \n
| \n | \n\n \n Common shares | \n \n \n Common shares B | \n ||||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Authorized share capital | \n \n \n 480 | \n \n \n 480 | \n \n \n 480 | \n \n \n 240 | \n \n \n 240 | \n \n \n 240 | \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 4,000 | \n \n \n 2,000 | \n \n \n 2,000 | \n \n \n 2,000 | \n
| \n \n Par value in cents per share | \n \n \n 12 | \n \n \n 12 | \n \n \n 12 | \n \n \n 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 January 1 | \n \n \n 1,652,797 | \n \n \n 198 | \n \n \n 353,388 | \n \n \n 42 | \n
| \n \n Shares withdrawn | \n \n \n \n \n (79,678) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (17,557) \n | \n \n \n \n \n (2) \n | \n
| \n \n On December 31, 2025 | \n \n \n 1,573,120 | \n \n \n 189 | \n \n \n 335,831 | \n \n \n 40 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1 | \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 On December 31, 2024 | \n \n \n 1,652,797 | \n \n \n 198 | \n \n \n 353,388 | \n \n \n 42 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1 | \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 On December 31, 2023 | \n \n \n 1,814,727 | \n \n \n 218 | \n \n \n 389,759 | \n \n \n 47 | \n
During 2025, common shares were withdrawn in two transactions. In December 2025, 79,677,562 common shares were cancelled, and 17,557,160 common shares B were cancelled.
During 2024, common shares were withdrawn in two transactions. In July 2024, 126,960,718 common shares were cancelled, while in December 2024, 34,968,762 common shares and 36,371,440 common shares B were cancelled.
The withdrawal of common shares was executed in two transactions during 2023. In July 2023, 79,703,317 common shares and 43,817,400 common shares B cancelled, while in December 2023, 215,000,000 common shares and 112,619,440 common shares B were cancelled.
The purpose of the share cancellations is to reduce the number of treasury shares that are not used to cover obligations arising from share-based incentive plans or other obligations.
The table below represents the weighted average number of common shares, including treasury shares, attributable
to\u00a0Aegon\u00a0Ltd.:
| \n | \n\n \n Common shares | \n \n \n Common shares B | \n ||||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n \n \n Weighted average number (thousands) \n | \n \n \n 1,649,305 | \n \n \n 1,753,162 | \n \n \n 2,067,119 | \n \n \n 352,618 | \n \n \n 388,169 | \n \n \n 523,149 | \n
All issued common shares and common shares B have a nominal value of EUR 0.12 and have been fully paid up. The\u00a0Board\u00a0is\u00a0authorized, subject to certain restrictions of Bermuda law and the Bye-Laws, to repurchase Aegon Ltd. shares.\u00a0Vereniging\u00a0Aegon, based in Haarlemmermeer, the Netherlands, holds all the issued and outstanding common shares\u00a0B.
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 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \n \n \n 6,853 | \n \n \n 6,853 | \n \n \n 6,853 | \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 - 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 68,791,547 (2024: 68,934,478, 2023: 72,319,889) of its own treasury common shares and 7,945,440 (2024: 7,945,440, 2023: 7,945,440) own treasury common shares B with a par value of EUR 0.12 each.
\nOn December 15, 2025, Aegon completed its share buyback program, which initially began on July 1, 2025, as a EUR 200 million initiative and was later expanded, on August 25, 2025, by an additional EUR 200 million, bringing the total to EUR 400 million. Between July 1, 2025, and December 15, 2025, 61,197,437 common shares were repurchased at an average price of\u00a0EUR 6.4772 per share. Vereniging Aegon participated in this program for EUR 71 million.
On June 30, 2025, Aegon completed its share buyback program, as announced on November 15, 2024, returning EUR\u00a0150\u00a0million to shareholders. Between January 13, 2025, and June 30, 2025, a total of 25,200,170 common shares were\u00a0repurchased at an average price of EUR 5.9641 per share. The EUR 150 million share buyback program included approximately EUR 40 million to meet Aegon's obligations arising from share-based compensation plans for senior management. Vereniging Aegon participated in this buyback for EUR 20 million.
In 2025, Aegon repurchased 17,557,160 common shares B at an average price of EUR 0.16.
On\u00a0December 13, 2024, Aegon completed its share buyback program, as announced on\u00a0May 16, 2024, returning
EUR\u00a0200\u00a0million\u00a0to shareholders. Between\u00a0July 8, 2024 and December 13, 2024, a total of 34,968,762 common shares\u00a0were\u00a0repurchased at an average price of\u00a0EUR 5.7049\u00a0per share.
In 2024, Aegon repurchased 36,371,440 common shares B at an average price of EUR 0.15.
On July 6, 2023, Aegon announced the beginning of a EUR 1.5 billion share buyback program. This followed the completion of\u00a0the\u00a0combination of its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. on\u00a0July\u00a04, 2023. On April 9, 2024, Aegon announced that this share buyback was increased by EUR 35 million in relation to\u00a0the\u00a0share-based\u00a0compensation 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). Between July 6, 2023, and June 28, 2024, a total of 301,105,806 common shares were repurchased at an average price of EUR 5.0966 per share.
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 rate of 4.2737 per share.
On January 30, 2023, Aegon repurchased 8,516,263 common shares at an average price of EUR 5.0014 per share, to fulfill the obligation in connection with the share-based compensation plans for senior management.
In 2023, Aegon repurchased 112,619,400 common shares B at an average price of EUR 0.13.
\nIn 2025, in total 6,862,976 common shares were sold at an average price of EUR 5.7516 per share, in connection with Aegon\u2019s obligations resulting from the share-based compensation plans for senior management (2024: 6,649,353 common shares at an average price of EUR 4.7678 per share, 2023: 4,993,117 common shares at an average price of EUR 4.4602 per\u00a0share).
\nDuring 2025, common shares were withdrawn in one transaction, following the Company's repurchases under its share buyback programs. In December 2025, 79,677,562 common shares were cancelled at an average price of EUR 5.8066, and\u00a017,557,160 common shares B were cancelled at an average price of EUR 0.16.
During 2024, common shares were withdrawn in two transactions, following the Company's repurchases\u00a0under its share buyback programs. In July 2024, 126,960,718 common shares at an average price of EUR 5.0635 per share, while in December 2024, 34,968,762 common shares at an average price of EUR 5.5143 per share, and 36,371,440 common shares B were cancelled at an average price of EUR 0.15.
During 2023, common shares were withdrawn in two transactions, following the Company's repurchases under its share buyback programs. In July 2023, 79,703,317 shares were cancelled at an average price of EUR 4.5917 per share, and 43,817,400 common shares B were cancelled at an average price of 0.11. In December 2023, 215,000,000 common shares were cancelled at an average price of EUR 4.5860 per share, and 112,619,400 common shares B were cancelled at an average price of EUR 0.13.
| \n | \n\n \n Common shares | \n \n \n Common shares B | \n ||||
| \n \n Treasury shares | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n \n \n Weighted average number (thousands) \n | \n \n \n 96,602 | \n \n \n 123,431 | \n \n \n 188,403 | \n \n \n 7,945 | \n \n \n 7,945 | \n \n \n 33,035 | \n
| \n | \n\n \n \n \n Investments (FVOCI) \n | \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 On January 1, 2025 | \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 Gross revaluation | \n \n \n 1,605 | \n \n \n 1 | \n \n \n \n \n (97) \n | \n \n \n \n \n (833) \n | \n \n \n 119 | \n \n \n 795 | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 342 | \n \n \n - | \n \n \n \n \n (127) \n | \n \n \n - | \n \n \n - | \n \n \n 215 | \n
| \n \n Movements in foreign currency translation and net foreign investment hedging reserves | \n \n \n 464 | \n \n \n \n \n (1) \n | \n \n \n \n \n (79) \n | \n \n \n \n \n (297) \n | \n \n \n 326 | \n \n \n 413 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Tax effect | \n \n \n \n \n (419) \n | \n \n \n - | \n \n \n 49 | \n \n \n 174 | \n \n \n \n \n (22) \n | \n \n \n \n \n (218) \n | \n
| \n \n Disposal of group assets | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n
| \n \n On December 31, 2025 | \n \n \n \n \n (2,434) \n | \n \n \n 8 | \n \n \n 469 | \n \n \n 1,821 | \n \n \n \n \n (2,384) \n | \n \n \n \n \n (2,519) \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 \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 Movements in foreign currency translation and net foreign investment hedging reserves | \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\n | \n\n | \n\n | \n\n | \n\n | \n\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 Movements in foreign currency translation and net foreign investment hedging reserves | \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\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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
The revaluation of both investments measured at FVOCI and real estate held for own use includes 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 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Shares | \n \n \n 3 | \n \n \n 3 | \n \n \n 2 | \n
| \n \n Debt securities | \n \n \n \n \n (2,431) \n | \n \n \n \n \n (4,425) \n | \n \n \n \n \n (3,297) \n | \n
| \n \n Money market and other short-term investments | \n \n \n \n \n (6) \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 (2,434) \n | \n \n \n \n \n (4,426) \n | \n \n \n \n \n (3,300) \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\u00a0offset\u00a0the\u00a0gain or loss from the hedged cash flow. No amounts have been released from equity for inclusion in the\u00a0initial\u00a0measurement of non-financial assets or liabilities.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \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 Remeasurements of defined benefit plans | \n \n \n 9 | \n \n \n \n \n (6) \n | \n \n \n \n \n (110) \n | \n
| \n \n Tax effect | \n \n \n \n \n (4) \n | \n \n \n 1 | \n \n \n 17 | \n
| \n \n Net exchange differences | \n \n \n 101 | \n \n \n \n \n (60) \n | \n \n \n 14 | \n
| \n \n Disposal of a business | \n \n \n - | \n \n \n - | \n \n \n 638 | \n
| \n \n Total remeasurement of defined benefit plans | \n \n \n \n \n (966) \n | \n \n \n \n \n (1,072) \n | \n \n \n \n \n (1,006) \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, 2025 | \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 Movements in foreign currency translation and net foreign investment hedging reserves | \n \n \n \n \n (998) \n | \n \n \n 51 | \n \n \n - | \n \n \n \n \n (947) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Disposal of a business | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Disposal | \n \n \n - | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n \n \n (17) \n | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n 3 | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n 56 | \n \n \n 56 | \n
| \n \n On December 31, 2025 | \n \n \n 380 | \n \n \n \n \n (331) \n | \n \n \n \n \n (5) \n | \n \n \n 43 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \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 Movements 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\n | \n\n | \n\n | \n\n | \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 Other | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \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 Movements 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\n | \n\n | \n\n | \n\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
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 comprises 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 ventures' and associates' equity.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23696m14598p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Common shares | \n \n \n 189 | \n \n \n 198 | \n \n \n 218 | \n
| \n \n Common shares B | \n \n \n 40 | \n \n \n 42 | \n \n \n 47 | \n
| \n \n On December 31 | \n \n \n 229 | \n \n \n 241 | \n \n \n 265 | \n
| \n | \n\n \n Common shares | \n \n \n Common shares B | \n ||||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Authorized share capital | \n \n \n 480 | \n \n \n 480 | \n \n \n 480 | \n \n \n 240 | \n \n \n 240 | \n \n \n 240 | \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 4,000 | \n \n \n 2,000 | \n \n \n 2,000 | \n \n \n 2,000 | \n
| \n \n Par value in cents per share | \n \n \n 12 | \n \n \n 12 | \n \n \n 12 | \n \n \n 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 January 1 | \n \n \n 1,652,797 | \n \n \n 198 | \n \n \n 353,388 | \n \n \n 42 | \n
| \n \n Shares withdrawn | \n \n \n \n \n (79,678) \n | \n \n \n \n \n (10) \n | \n \n \n \n \n (17,557) \n | \n \n \n \n \n (2) \n | \n
| \n \n On December 31, 2025 | \n \n \n 1,573,120 | \n \n \n 189 | \n \n \n 335,831 | \n \n \n 40 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1 | \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 On December 31, 2024 | \n \n \n 1,652,797 | \n \n \n 198 | \n \n \n 353,388 | \n \n \n 42 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n On January 1 | \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 On December 31, 2023 | \n \n \n 1,814,727 | \n \n \n 218 | \n \n \n 389,759 | \n \n \n 47 | \n
During 2025, common shares were withdrawn in two transactions. In December 2025, 79,677,562 common shares were cancelled, and 17,557,160 common shares B were cancelled.
During 2024, common shares were withdrawn in two transactions. In July 2024, 126,960,718 common shares were cancelled, while in December 2024, 34,968,762 common shares and 36,371,440 common shares B were cancelled.
The withdrawal of common shares was executed in two transactions during 2023. In July 2023, 79,703,317 common shares and 43,817,400 common shares B cancelled, while in December 2023, 215,000,000 common shares and 112,619,440 common shares B were cancelled.
The purpose of the share cancellations is to reduce the number of treasury shares that are not used to cover obligations arising from share-based incentive plans or other obligations.
The table below represents the weighted average number of common shares, including treasury shares, attributable
to\u00a0Aegon\u00a0Ltd.:
| \n | \n\n \n Common shares | \n \n \n Common shares B | \n ||||
| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n \n \n Weighted average number (thousands) \n | \n \n \n 1,649,305 | \n \n \n 1,753,162 | \n \n \n 2,067,119 | \n \n \n 352,618 | \n \n \n 388,169 | \n \n \n 523,149 | \n
All issued common shares and common shares B have a nominal value of EUR 0.12 and have been fully paid up. The\u00a0Board\u00a0is\u00a0authorized, subject to certain restrictions of Bermuda law and the Bye-Laws, to repurchase Aegon Ltd. shares.\u00a0Vereniging\u00a0Aegon, based in Haarlemmermeer, the Netherlands, holds all the issued and outstanding common shares\u00a0B.
For detailed information on the transaction between Aegon Ltd. and Vereniging Aegon, see note\u00a044 Related party transactions in the consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21450m13904p": { "value": "\nOn the reporting date, Aegon Ltd. held 68,791,547 (2024: 68,934,478, 2023: 72,319,889) of its own treasury common shares and 7,945,440 (2024: 7,945,440, 2023: 7,945,440) own treasury common shares B with a par value of EUR 0.12 each.
\nOn December 15, 2025, Aegon completed its share buyback program, which initially began on July 1, 2025, as a EUR 200 million initiative and was later expanded, on August 25, 2025, by an additional EUR 200 million, bringing the total to EUR 400 million. Between July 1, 2025, and December 15, 2025, 61,197,437 common shares were repurchased at an average price of\u00a0EUR 6.4772 per share. Vereniging Aegon participated in this program for EUR 71 million.
On June 30, 2025, Aegon completed its share buyback program, as announced on November 15, 2024, returning EUR\u00a0150\u00a0million to shareholders. Between January 13, 2025, and June 30, 2025, a total of 25,200,170 common shares were\u00a0repurchased at an average price of EUR 5.9641 per share. The EUR 150 million share buyback program included approximately EUR 40 million to meet Aegon's obligations arising from share-based compensation plans for senior management. Vereniging Aegon participated in this buyback for EUR 20 million.
In 2025, Aegon repurchased 17,557,160 common shares B at an average price of EUR 0.16.
On\u00a0December 13, 2024, Aegon completed its share buyback program, as announced on\u00a0May 16, 2024, returning
EUR\u00a0200\u00a0million\u00a0to shareholders. Between\u00a0July 8, 2024 and December 13, 2024, a total of 34,968,762 common shares\u00a0were\u00a0repurchased at an average price of\u00a0EUR 5.7049\u00a0per share.
In 2024, Aegon repurchased 36,371,440 common shares B at an average price of EUR 0.15.
On July 6, 2023, Aegon announced the beginning of a EUR 1.5 billion share buyback program. This followed the completion of\u00a0the\u00a0combination of its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. on\u00a0July\u00a04, 2023. On April 9, 2024, Aegon announced that this share buyback was increased by EUR 35 million in relation to\u00a0the\u00a0share-based\u00a0compensation 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). Between July 6, 2023, and June 28, 2024, a total of 301,105,806 common shares were repurchased at an average price of EUR 5.0966 per share.
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 rate of 4.2737 per share.
On January 30, 2023, Aegon repurchased 8,516,263 common shares at an average price of EUR 5.0014 per share, to fulfill the obligation in connection with the share-based compensation plans for senior management.
In 2023, Aegon repurchased 112,619,400 common shares B at an average price of EUR 0.13.
\nIn 2025, in total 6,862,976 common shares were sold at an average price of EUR 5.7516 per share, in connection with Aegon\u2019s obligations resulting from the share-based compensation plans for senior management (2024: 6,649,353 common shares at an average price of EUR 4.7678 per share, 2023: 4,993,117 common shares at an average price of EUR 4.4602 per\u00a0share).
\nDuring 2025, common shares were withdrawn in one transaction, following the Company's repurchases under its share buyback programs. In December 2025, 79,677,562 common shares were cancelled at an average price of EUR 5.8066, and\u00a017,557,160 common shares B were cancelled at an average price of EUR 0.16.
During 2024, common shares were withdrawn in two transactions, following the Company's repurchases\u00a0under its share buyback programs. In July 2024, 126,960,718 common shares at an average price of EUR 5.0635 per share, while in December 2024, 34,968,762 common shares at an average price of EUR 5.5143 per share, and 36,371,440 common shares B were cancelled at an average price of EUR 0.15.
During 2023, common shares were withdrawn in two transactions, following the Company's repurchases under its share buyback programs. In July 2023, 79,703,317 shares were cancelled at an average price of EUR 4.5917 per share, and 43,817,400 common shares B were cancelled at an average price of 0.11. In December 2023, 215,000,000 common shares were cancelled at an average price of EUR 4.5860 per share, and 112,619,400 common shares B were cancelled at an average price of EUR 0.13.
| \n | \n\n \n Common shares | \n \n \n Common shares B | \n ||||
| \n \n Treasury shares | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n \n \n Weighted average number (thousands) \n | \n \n \n 96,602 | \n \n \n 123,431 | \n \n \n 188,403 | \n \n \n 7,945 | \n \n \n 7,945 | \n \n \n 33,035 | \n
| \n | \n\n \n \n \n Investments (FVOCI) \n | \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 On January 1, 2025 | \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 Gross revaluation | \n \n \n 1,605 | \n \n \n 1 | \n \n \n \n \n (97) \n | \n \n \n \n \n (833) \n | \n \n \n 119 | \n \n \n 795 | \n
| \n \n Net (gains) / losses transferred to income statement | \n \n \n 342 | \n \n \n - | \n \n \n \n \n (127) \n | \n \n \n - | \n \n \n - | \n \n \n 215 | \n
| \n \n Movements in foreign currency translation and net foreign investment hedging reserves | \n \n \n 464 | \n \n \n \n \n (1) \n | \n \n \n \n \n (79) \n | \n \n \n \n \n (297) \n | \n \n \n 326 | \n \n \n 413 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Tax effect | \n \n \n \n \n (419) \n | \n \n \n - | \n \n \n 49 | \n \n \n 174 | \n \n \n \n \n (22) \n | \n \n \n \n \n (218) \n | \n
| \n \n Disposal of group assets | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n \n \n (17) \n | \n
| \n \n On December 31, 2025 | \n \n \n \n \n (2,434) \n | \n \n \n 8 | \n \n \n 469 | \n \n \n 1,821 | \n \n \n \n \n (2,384) \n | \n \n \n \n \n (2,519) \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 \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 Movements in foreign currency translation and net foreign investment hedging reserves | \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\n | \n\n | \n\n | \n\n | \n\n | \n\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 Movements in foreign currency translation and net foreign investment hedging reserves | \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\n | \n\n | \n\n | \n\n | \n\n | \n\n | \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
The revaluation of both investments measured at FVOCI and real estate held for own use includes 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 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Shares | \n \n \n 3 | \n \n \n 3 | \n \n \n 2 | \n
| \n \n Debt securities | \n \n \n \n \n (2,431) \n | \n \n \n \n \n (4,425) \n | \n \n \n \n \n (3,297) \n | \n
| \n \n Money market and other short-term investments | \n \n \n \n \n (6) \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 (2,434) \n | \n \n \n \n \n (4,426) \n | \n \n \n \n \n (3,300) \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\u00a0offset\u00a0the\u00a0gain or loss from the hedged cash flow. No amounts have been released from equity for inclusion in the\u00a0initial\u00a0measurement of non-financial assets or liabilities.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n On January 1 | \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 Remeasurements of defined benefit plans | \n \n \n 9 | \n \n \n \n \n (6) \n | \n \n \n \n \n (110) \n | \n
| \n \n Tax effect | \n \n \n \n \n (4) \n | \n \n \n 1 | \n \n \n 17 | \n
| \n \n Net exchange differences | \n \n \n 101 | \n \n \n \n \n (60) \n | \n \n \n 14 | \n
| \n \n Disposal of a business | \n \n \n - | \n \n \n - | \n \n \n 638 | \n
| \n \n Total remeasurement of defined benefit plans | \n \n \n \n \n (966) \n | \n \n \n \n \n (1,072) \n | \n \n \n \n \n (1,006) \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, 2025 | \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 Movements in foreign currency translation and net foreign investment hedging reserves | \n \n \n \n \n (998) \n | \n \n \n 51 | \n \n \n - | \n \n \n \n \n (947) \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Disposal of a business | \n \n \n \n \n (2) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Disposal | \n \n \n - | \n \n \n - | \n \n \n \n \n (17) \n | \n \n \n \n \n (17) \n | \n
| \n \n Equity movements of joint ventures | \n \n \n - | \n \n \n - | \n \n \n 3 | \n \n \n 3 | \n
| \n \n Equity movements of associates | \n \n \n - | \n \n \n - | \n \n \n 56 | \n \n \n 56 | \n
| \n \n On December 31, 2025 | \n \n \n 380 | \n \n \n \n \n (331) \n | \n \n \n \n \n (5) \n | \n \n \n 43 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \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 Movements 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\n | \n\n | \n\n | \n\n | \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 Other | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \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 Movements 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\n | \n\n | \n\n | \n\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
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 comprises 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 ventures' and associates' equity.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21605m13980p": { "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 2025 | \n \n \n 2024 | \n
| \n \n Fixed to floating subordinated notes | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n USD 800 million | \n \n \n 5.5% 2 | \n \n \n Semi-annually, April 11 | \n \n \n 2018/48 | \n \n \n 2028 | \n \n \n 680 | \n \n \n 770 | \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 2026 | \n \n \n 781 | \n \n \n 883 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n | \n\n \n 1,461 | \n \n \n 1,653 | \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 1,312 | \n \n \n 1,490 | \n
These securities are subordinated and rank senior to the junior perpetual capital securities and the perpetual contingent convertible securities, equally with the perpetual cumulative subordinated bonds and junior to all other liabilities. The terms of\u00a0the securities include provisions for deferring coupon payments. 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 2025 | \n \n \n 2024 | \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 57 | \n \n \n 66 | \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 42 | \n \n \n 47 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n | \n\n \n 99 | \n \n \n 113 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Fair value | \n \n | \n\n | \n\n | \n\n | \n\n \n 118 | \n \n \n 133 | \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 include provisions for deferring distributions for extension periods up to 10 consecutive semi-annual periods. The trust pass-through securities are subordinated to all other unsubordinated borrowings and liabilities of Transamerica Corporation.
There were no defaults or breaches of conditions during the period.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Capital funding | \n \n \n 1,396 | \n \n \n 1,533 | \n
| \n \n Operational funding | \n \n \n 586 | \n \n \n 1,480 | \n
| \n \n On December 31 | \n \n \n 1,982 | \n \n \n 3,013 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 10 | \n \n \n 37 | \n
| \n \n Non-current | \n \n \n 1,972 | \n \n \n 2,976 | \n
| \n | \n\n | \n\n | \n
| \n \n Fair value of borrowings | \n \n \n 2,059 | \n \n \n 3,076 | \n
Aegon\u2019s borrowings are defined separately as capital funding and operational funding. Capital funding includes debt securities issued for general corporate purposes and to capitalize its business units. Capital funding is part of the Company\u2019s total capitalization\u00a0and is used to finance its subsidiaries and the cash held at the holding company. Operational funding includes debt securities issued to finance dedicated asset pools. 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 6 million positive (2024: EUR 8 million positive).
\nA detailed composition of capital funding is included in the following table:
| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n 2025 | \n \n \n 2024 | \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 647 | \n \n \n 731 | \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 286 | \n \n \n 301 | \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 455 | \n \n \n 480 | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n \n 9 | \n \n \n 20 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 1,396 | \n \n \n 1,533 | \n
These loans are considered senior debt in calculating financial leverage in note 37 Capital management and solvency.
\nIn 2025, the operational funding decreased by EUR 895 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 2025 | \n \n \n 2024 | \n
| \n \n FHLB Secured borrowings 1 | \n \n \n Fixed | \n \n \n Quarterly | \n \n \n 2022 / 26 | \n \n \n 554 | \n \n \n 1,449 | \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 586 | \n \n \n 1,480 | \n
The floating-rate undrawn committed borrowing facilities expiring beyond one year amounted to EUR 1,351 million on
December\u00a031, 2025 (2024: EUR 1,544 million). The decrease of the facilities was the result of net exchange differences.
There were no defaults or breaches of conditions during the period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22273m14200p": { "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 2025 | \n \n \n 2024 | \n
| \n \n Fixed to floating subordinated notes | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n USD 800 million | \n \n \n 5.5% 2 | \n \n \n Semi-annually, April 11 | \n \n \n 2018/48 | \n \n \n 2028 | \n \n \n 680 | \n \n \n 770 | \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 2026 | \n \n \n 781 | \n \n \n 883 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n | \n\n \n 1,461 | \n \n \n 1,653 | \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 1,312 | \n \n \n 1,490 | \n
These securities are subordinated and rank senior to the junior perpetual capital securities and the perpetual contingent convertible securities, equally with the perpetual cumulative subordinated bonds and junior to all other liabilities. The terms of\u00a0the securities include provisions for deferring coupon payments. There have been no defaults or breaches of conditions during the period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSubordinatedLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23721m14210p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Aegon risk | \n \n \n 12,652 | \n \n \n 12,592 | \n
| \n \n - Institutional guaranteed products | \n \n \n 157 | \n \n \n 182 | \n
| \n \n - Fixed annuities | \n \n \n 12,466 | \n \n \n 12,378 | \n
| \n \n - Other | \n \n \n 29 | \n \n \n 32 | \n
| \n | \n\n | \n\n | \n
| \n \n Policyholder risk | \n \n \n 85,161 | \n \n \n 79,078 | \n
| \n | \n\n | \n\n | \n
| \n \n Total investment contracts without DPF | \n \n \n 97,814 | \n \n \n 91,669 | \n
| \n | \n\n \n Aegon risk | \n \n \n Policyholder risk | \n ||
| \n \n Movement schedule | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Opening balance | \n \n \n 12,592 | \n \n \n 10,222 | \n \n \n 79,078 | \n \n \n 65,044 | \n
| \n \n Deposits | \n \n \n 1,798 | \n \n \n 1,595 | \n \n \n 15,135 | \n \n \n 14,932 | \n
| \n \n Withdrawals | \n \n \n \n \n (1,653) \n | \n \n \n \n \n (1,236) \n | \n \n \n \n \n (12,788) \n | \n \n \n \n \n (11,807) \n | \n
| \n \n Interest credited | \n \n \n 354 | \n \n \n 288 | \n \n \n 11,004 | \n \n \n 8,467 | \n
| \n \n Fund charges released | \n \n \n \n \n (15) \n | \n \n \n \n \n (13) \n | \n \n \n \n \n (384) \n | \n \n \n \n \n (367) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (1,535) \n | \n \n \n 755 | \n \n \n \n \n (6,241) \n | \n \n \n 3,868 | \n
| \n \n Transfer to/from other headings | \n \n \n 1,113 | \n \n \n 1,038 | \n \n \n \n \n (647) \n | \n \n \n \n \n (1,060) \n | \n
| \n \n Other movements | \n \n \n \n \n (2) \n | \n \n \n \n \n (58) \n | \n \n \n 4 | \n \n \n 1 | \n
| \n \n Closing balance | \n \n \n 12,652 | \n \n \n 12,592 | \n \n \n 85,161 | \n \n \n 79,078 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Capital funding | \n \n \n 1,396 | \n \n \n 1,533 | \n
| \n \n Operational funding | \n \n \n 586 | \n \n \n 1,480 | \n
| \n \n On December 31 | \n \n \n 1,982 | \n \n \n 3,013 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 10 | \n \n \n 37 | \n
| \n \n Non-current | \n \n \n 1,972 | \n \n \n 2,976 | \n
| \n | \n\n | \n\n | \n
| \n \n Fair value of borrowings | \n \n \n 2,059 | \n \n \n 3,076 | \n
Aegon\u2019s borrowings are defined separately as capital funding and operational funding. Capital funding includes debt securities issued for general corporate purposes and to capitalize its business units. Capital funding is part of the Company\u2019s total capitalization\u00a0and is used to finance its subsidiaries and the cash held at the holding company. Operational funding includes debt securities issued to finance dedicated asset pools. 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 6 million positive (2024: EUR 8 million positive).
\nA detailed composition of capital funding is included in the following table:
| \n | \n\n \n Coupon rate | \n \n \n Coupon date | \n \n \n Issue / Maturity | \n \n \n 2025 | \n \n \n 2024 | \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 647 | \n \n \n 731 | \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 286 | \n \n \n 301 | \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 455 | \n \n \n 480 | \n
| \n \n Other | \n \n | \n\n | \n\n | \n\n \n 9 | \n \n \n 20 | \n
| \n \n On December 31 | \n \n | \n\n | \n\n | \n\n \n 1,396 | \n \n \n 1,533 | \n
These loans are considered senior debt in calculating financial leverage in note 37 Capital management and solvency.
\nIn 2025, the operational funding decreased by EUR 895 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 2025 | \n \n \n 2024 | \n
| \n \n FHLB Secured borrowings 1 | \n \n \n Fixed | \n \n \n Quarterly | \n \n \n 2022 / 26 | \n \n \n 554 | \n \n \n 1,449 | \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 586 | \n \n \n 1,480 | \n
The floating-rate undrawn committed borrowing facilities expiring beyond one year amounted to EUR 1,351 million on
December\u00a031, 2025 (2024: EUR 1,544 million). The decrease of the facilities was the result of net exchange differences.
There were no defaults or breaches of conditions during the period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21447m13902p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 98 | \n \n \n 83 | \n
| \n \n Additional provisions | \n \n \n 89 | \n \n \n 45 | \n
| \n \n Disposal of a business | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n
| \n \n Unused amounts reversed through the income statement | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Used during the year | \n \n \n \n \n (82) \n | \n \n \n \n \n (32) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (7) \n | \n \n \n 5 | \n
| \n \n On December 31 | \n \n \n 97 | \n \n \n 98 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 15 | \n \n \n 91 | \n
| \n \n Non-current | \n \n \n 82 | \n \n \n 7 | \n
The provisions on December 31, 2025, consisted of restructuring provisions of EUR 81 million (2024:\u00a0EUR 7 million), litigation\u00a0provisions of EUR 2 million (2024: EUR 67 million) and other provisions of EUR 13 million (2024:\u00a0EUR\u00a024\u00a0million). The\u00a0restructuring provisions mainly include expected redundancy payments related to the announced relocation of Aegon\u2019s head office to the United States. The litigation provisions in 2025 mainly decreased\u00a0due to the payment of a settlement regarding the putative class action alleging that several US-based Aegon subsidiaries mischaracterized agents as independent contractors instead of employees (see note\u00a039 Commitments and contingencies).
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Retirement benefit plans | \n \n \n 217 | \n \n \n 269 | \n
| \n \n Other post-employment benefit plans | \n \n \n 167 | \n \n \n 189 | \n
| \n \n Total defined benefit plans | \n \n \n 384 | \n \n \n 457 | \n
| \n | \n\n | \n\n | \n
| \n \n Retirement benefit plans in surplus | \n \n \n 95 | \n \n \n 110 | \n
| \n \n Reimbursement rights | \n \n \n 28 | \n \n \n 9 | \n
| \n \n Total defined benefit assets | \n \n \n 124 | \n \n \n 119 | \n
| \n | \n\n | \n\n | \n
| \n \n Retirement benefit plans in deficit | \n \n \n 340 | \n \n \n 388 | \n
| \n \n Other post-employment benefit plans in deficit | \n \n \n 167 | \n \n \n 189 | \n
| \n \n Total defined benefit liabilities | \n \n \n 507 | \n \n \n 576 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n \n Movements during the year | \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 269 | \n \n \n 189 | \n \n \n 457 | \n \n \n 368 | \n \n \n 178 | \n \n \n 546 | \n
| \n \n Defined benefit expenses | \n \n \n 45 | \n \n \n 15 | \n \n \n 61 | \n \n \n 42 | \n \n \n 15 | \n \n \n 57 | \n
| \n \n Remeasurements of defined benefit plans | \n \n \n \n \n (6) \n | \n \n \n \n \n (3) \n | \n \n \n \n \n (9) \n | \n \n \n 19 | \n \n \n \n \n (5) \n | \n \n \n 15 | \n
| \n \n Contributions paid | \n \n \n \n \n (44) \n | \n \n \n - | \n \n \n \n \n (44) \n | \n \n \n \n \n (148) \n | \n \n \n - | \n \n \n \n \n (148) \n | \n
| \n \n Benefits paid | \n \n \n \n \n (19) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (31) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (40) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (28) \n | \n \n \n \n \n (22) \n | \n \n \n \n \n (50) \n | \n \n \n 16 | \n \n \n 12 | \n \n \n 27 | \n
| \n \n On December 31 | \n \n \n 217 | \n \n \n 167 | \n \n \n 384 | \n \n \n 269 | \n \n \n 189 | \n \n \n 457 | \n
The amounts recognized in the statement of financial position are determined as follows:
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n \n Net carrying value details | \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 funded obligations | \n \n \n 2,852 | \n \n \n - | \n \n \n 2,852 | \n \n \n 3,140 | \n \n \n - | \n \n \n 3,140 | \n
| \n \n Fair value of plan assets | \n \n \n \n \n (2,845) \n | \n \n \n - | \n \n \n \n \n (2,845) \n | \n \n \n \n \n (3,123) \n | \n \n \n - | \n \n \n \n \n (3,123) \n | \n
| \n \n Fair value of reimbursement rights | \n \n \n \n \n (28) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n \n \n (9) \n | \n
| \n | \n\n \n \n \n (22) \n | \n \n \n - | \n \n \n \n \n (22) \n | \n \n \n 7 | \n \n \n - | \n \n \n 7 | \n
| \n \n Present value of unfunded obligations | \n \n \n 239 | \n \n \n 167 | \n \n \n 406 | \n \n \n 262 | \n \n \n 189 | \n \n \n 450 | \n
| \n \n On December 31 | \n \n \n 217 | \n \n \n 167 | \n \n \n 384 | \n \n \n 269 | \n \n \n 189 | \n \n \n 457 | \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 were nil in both 2025 and 2024.
| \n | \n\n \n 2025 | \n \n \n 2024 | \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 36 | \n \n \n 7 | \n \n \n 43 | \n \n \n 32 | \n \n \n 7 | \n \n \n 39 | \n
| \n \n \n \n Net interest on net defined benefit liability (asset) \n | \n \n \n 9 | \n \n \n 9 | \n \n \n 18 | \n \n \n 9 | \n \n \n 9 | \n \n \n 18 | \n
| \n \n Total defined benefit expenses | \n \n \n 45 | \n \n \n 15 | \n \n \n 61 | \n \n \n 42 | \n \n \n 15 | \n \n \n 57 | \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 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 3,590 | \n \n \n 3,616 | \n
| \n \n Current year service cost | \n \n \n 43 | \n \n \n 39 | \n
| \n \n Interest expenses | \n \n \n 177 | \n \n \n 173 | \n
| \n | \n\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 demographic assumptions | \n \n \n 21 | \n \n \n 6 | \n
| \n \n - Actuarial gains and losses arising from changes in financial assumptions | \n \n \n 14 | \n \n \n \n \n (217) \n | \n
| \n \n Benefits paid | \n \n \n \n \n (237) \n | \n \n \n \n \n (237) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (350) \n | \n \n \n 208 | \n
| \n \n Other | \n \n \n - | \n \n \n 2 | \n
| \n \n On December 31 | \n \n \n 3,257 | \n \n \n 3,590 | \n
| \n \n Movements during the year in plan assets for retirement benefit plans | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 3,123 | \n \n \n 3,051 | \n
| \n \n \n \n Interest income (based on discount rate) \n | \n \n \n 155 | \n \n \n 152 | \n
| \n \n \n \n Remeasurements of the net defined liability (asset) \n | \n \n \n 32 | \n \n \n \n \n (208) \n | \n
| \n \n Contributions by employer | \n \n \n 44 | \n \n \n 148 | \n
| \n \n Benefits paid | \n \n \n \n \n (210) \n | \n \n \n \n \n (200) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (299) \n | \n \n \n 180 | \n
| \n \n On December 31 | \n \n \n 2,845 | \n \n \n 3,123 | \n
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||||
| \n \n 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 702 | \n \n \n 198 | \n \n \n 900 | \n \n \n 32% | \n \n \n 594 | \n \n \n 275 | \n \n \n 869 | \n \n \n 28% | \n
| \n \n Derivatives | \n \n \n - | \n \n \n \n \n (30) \n | \n \n \n \n \n (30) \n | \n \n \n -1% | \n \n \n - | \n \n \n \n \n (183) \n | \n \n \n \n \n (183) \n | \n \n \n -6% | \n
| \n \n Investment funds | \n \n \n - | \n \n \n 1,625 | \n \n \n 1,625 | \n \n \n 57% | \n \n \n - | \n \n \n 2,027 | \n \n \n 2,027 | \n \n \n 65% | \n
| \n \n Other | \n \n \n - | \n \n \n 350 | \n \n \n 350 | \n \n \n 12% | \n \n \n - | \n \n \n 410 | \n \n \n 410 | \n \n \n 13% | \n
| \n \n On December 31 | \n \n \n 702 | \n \n \n 2,144 | \n \n \n 2,845 | \n \n \n 100% | \n \n \n 594 | \n \n \n 2,529 | \n \n \n 3,123 | \n \n \n 100% | \n
| \n \n Movements during the year of the fair value of the reimbursement rights | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 9 | \n \n \n 20 | \n
| \n \n Interest expenses | \n \n \n 3 | \n \n \n 3 | \n
| \n | \n\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 12 | \n \n \n \n \n (18) \n | \n
| \n \n Benefits paid | \n \n \n 4 | \n \n \n 4 | \n
| \n \n Other | \n \n \n - | \n \n \n 2 | \n
| \n \n On December 31 | \n \n \n 28 | \n \n \n 9 | \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 101 million on December 31, 2025 (2024: EUR 126 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 2025 or 2024. However, Transamerica Corporation made a pension plan contribution of EUR\u00a043 million in September, 2025 that was over and above the minimum required funding levels as set forth by the Internal Revenue Code. In 2024, Transamerica Corporation made a pension plan contribution of EUR 145 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 145 million (2024:\u00a0EUR\u00a0164\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 170 million (2024:\u00a0EUR\u00a0190 million).
The weighted average duration of the defined benefit obligation is 7.9 years (2024: 8.0\u00a0years).
The above sensitivity analysis is based on a change in one assumption, with all other assumptions held 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.
Target allocation of plan assets for retirement benefit plans for the next annual period is: equity instruments 2%-4%, debt\u00a0instruments 80%-90% and other instruments 8%-16%.
\nAegon UK operated a defined benefit pension scheme providing benefits for staff based on final pensionable salary and years\u00a0of\u00a0service. The scheme closed to new entrants several years ago and closed to future accruals 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\u00a0best 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 75 million on December 31, 2025 (2024: EUR 95 million surplus).\u00a0During 2025, no contributions were paid into the scheme (2024: EUR 10 million).
The investment strategy for the scheme is determined by the trustees in consultation with Aegon UK. Currently assets are invested in 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 interest 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, interest rate risks, investment returns, and changes in pensioners' life expectancy.
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 have been included in the funded position as\u00a0at\u00a0December 31, 2025.
The weighted average duration of the defined benefit obligation is 12.6 years (2024: 13.5 years).
Target allocation of plan assets for retirement benefit plans for the next annual period is 100% debt instruments.
\nFrom 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\u00a0added as an employer on 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 88 million on December 31, 2025 (December 31, 2024: 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 19.5 years (2024: 20.8 years).
Also included in the reimbursement rights is the present value of the expected guaranteed premiums and management fees\u00a0to be paid to a.s.r. by AEN. The present value as of December 31, 2025, amounts to EUR 59 million (December 31, 2024: EUR\u00a080 million), discounted at a rate of 4.00% (2024: 3.51%).
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 2 million as of December 31, 2025 (December 31, 2024: EUR 4 million). The weighted average duration of the other post-employment benefit plans is\u00a09.7\u00a0years (2024: 11.4 years).
\nThe principal actuarial assumptions applicable to the year ended December 31 are as follows.
Transamerica\u2019s mortality assumptions (demographic actuarial assumptions) are based on the PRI-2012 Employee, Healthy Annuitant and Contingent Survivor Tables (90% white collar/10% blue collar) projected with Scale MP-2021 for 2025 assumption, and 2024 assumption respectively, for the relevant calendar years.
Aegon UK\u2019s mortality assumptions utilize the Club Vita tables based on analysis of Scheme membership CMI 2024 1.5%/1.25% p.a. (males/females) and Scheme membership CMI 2023 1.5%/1.25% p.a. (males/females).
Aegon Employees Netherlands B.V.\u2019s mortality assumptions are Company-specific and are derived from the Projections Life Tables 2025 and 2024, respectively.
| \n \n Financial actuarial assumptions used to determine defined benefit obligations at year-end | \n \n \n Transamerica | \n \n \n Aegon UK | \n \n \n AEN | \n |||
| \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n |
| \n \n Discount rate | \n \n \n 5.45%/5.23% | \n \n \n 5.59%/5.51%1 | \n \n \n 5.66% | \n \n \n 5.58% | \n \n \n 4.00% | \n \n \n 3.51% | \n
| \n \n Salary increase rate | \n \n \n 4.00% | \n \n \n 4.00% | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Health care trend rate | \n \n \n 8.50% | \n \n \n 6.90% | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n Price inflation | \n \n \n n.a. | \n \n \n n.a. | \n \n \n 3.00% | \n \n \n 3.19% | \n \n \n 2.13% | \n \n \n 1.99% | \n
The principal actuarial assumptions affect 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 Estimated approximate effects on the defined benefit obligation | \n \n \n Transamerica | \n \n \n Aegon UK | \n \n \n AEN | \n |||
| \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n |
| \n \n Demographic actuarial assumptions | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 10% increase in mortality rates | \n \n \n \n \n (40) \n | \n \n \n \n \n (46) \n | \n \n \n \n \n (20) \n | \n \n \n \n \n (21) \n | \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 44 | \n \n \n 51 | \n \n \n 21 | \n \n \n 23 | \n \n \n 1 | \n \n \n 1 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Financial actuarial assumptions | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n 100 basis points increase in discount rate | \n \n \n \n \n (163) \n | \n \n \n \n \n (183) \n | \n \n \n \n \n (103) \n | \n \n \n \n \n (114) \n | \n \n \n \n \n (12) \n | \n \n \n \n \n (13) \n | \n
| \n \n 100 basis points decrease in discount rate | \n \n \n 201 | \n \n \n 232 | \n \n \n 126 | \n \n \n 142 | \n \n \n 16 | \n \n \n 17 | \n
| \n \n 100 basis points increase in salary increase rate | \n \n \n 4 | \n \n \n 4 | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n 100 basis points decrease in salary increase rate | \n \n \n \n \n (3) \n | \n \n \n \n \n (4) \n | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n 100 basis points increase in health care trend rate | \n \n \n 9 | \n \n \n 12 | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n 100 basis points decrease in health care trend rate | \n \n \n \n \n (9) \n | \n \n \n \n \n (10) \n | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n \n \n n.a. | \n
| \n \n 100 basis points increase in price inflation | \n \n \n n.a. | \n \n \n n.a. | \n \n \n 110 | \n \n \n 50 | \n \n \n - | \n \n \n - | \n
| \n \n 100 basis points decrease in price inflation | \n \n \n n.a. | \n \n \n n.a. | \n \n \n \n \n (101) \n | \n \n \n \n \n (95) \n | \n \n \n - | \n \n \n - | \n
The above sensitivity analysis is based on a change in one assumption, with all other assumptions held 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.
\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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22286m14206p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n On January 1 | \n \n \n 98 | \n \n \n 83 | \n
| \n \n Additional provisions | \n \n \n 89 | \n \n \n 45 | \n
| \n \n Disposal of a business | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n
| \n \n Unused amounts reversed through the income statement | \n \n \n - | \n \n \n \n \n (2) \n | \n
| \n \n Used during the year | \n \n \n \n \n (82) \n | \n \n \n \n \n (32) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (7) \n | \n \n \n 5 | \n
| \n \n On December 31 | \n \n \n 97 | \n \n \n 98 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 15 | \n \n \n 91 | \n
| \n \n Non-current | \n \n \n 82 | \n \n \n 7 | \n
The provisions on December 31, 2025, consisted of restructuring provisions of EUR 81 million (2024:\u00a0EUR 7 million), litigation\u00a0provisions of EUR 2 million (2024: EUR 67 million) and other provisions of EUR 13 million (2024:\u00a0EUR\u00a024\u00a0million). The\u00a0restructuring provisions mainly include expected redundancy payments related to the announced relocation of Aegon\u2019s head office to the United States. The litigation provisions in 2025 mainly decreased\u00a0due to the payment of a settlement regarding the putative class action alleging that several US-based Aegon subsidiaries mischaracterized agents as independent contractors instead of employees (see note\u00a039 Commitments and contingencies).
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Guarantees | \n \n \n 864 | \n \n \n 918 | \n
| \n \n Other guarantees | \n \n \n - | \n \n \n 6 | \n
Guarantees include those associated with the sale of investments in low-income housing tax credit partnerships in the\u00a0United\u00a0States, which may be invoked 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.\u00a0The standby letters of credit amounts shown above reflect 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, 2025 (2024: EUR 0 million), while other guarantees have EUR 1 million cash collateral at the end of 2025 (2024: EUR 1 million).
\nAegon faces significant risks of litigation as well as regulatory exams, investigations and actions relating to its and its\u00a0subsidiaries\u2019 businesses. Aegon is also subject to applicable regulations 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 adequately accounted for in the tax position, the ultimate outcome of tax audits or litigation may differ 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\u00a0losses 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 equity market and interest rate fluctuations. 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.
The existence of potential claims may remain unknown for extended periods after the events that gave rise to them. 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\u00a0litigation 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\u00a0relationship to economic losses or final awards. As a result, Aegon cannot predict the effect of litigation, investigations, or other actions on its business.
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 has reached an agreement to resolve a putative class action alleging that it improperly failed to pay bonuses to policyowners on a certain block of universal life policies. The matter is fully provisioned. The settlement is subject to final court approval.
Several US insurers, including Aegon subsidiaries, have been named in litigation over 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\u00a0cover 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. A settlement was agreed between the\u00a0parties in 2025. The matter is fully provisioned. The settlement remains subject to final court approval.
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 then dismissed the case. The plaintiff appealed the court\u2019s dismissal but subsequently passed away. An application to substitute plaintiff-appellant was granted. Aegon has no material assets located in Nigeria.
In 2025, several US-based Aegon subsidiaries reached a settlement in a putative class action alleging that the\u00a0subsidiaries mischaracterized agents as independent contractors instead of employees.\u00a0In April 2025, the settlement was\u00a0formally approved by the court which is consistent with the provision raised in 2024. The settlement was paid in November\u00a02025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21607m13981p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Deferred tax assets | \n \n \n 1,894 | \n \n \n 2,439 | \n
| \n \n Deferred tax liabilities | \n \n \n 13 | \n \n \n 64 | \n
| \n \n On December 31 | \n \n \n 1,882 | \n \n \n 2,375 | \n
| \n \n Deferred tax assets comprise temporary differences on | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Financial assets | \n \n \n 458 | \n \n \n 1,067 | \n
| \n \n Insurance and investment contracts | \n \n \n \n \n (344) \n | \n \n \n \n \n (1,124) \n | \n
| \n \n Deferred expenses and other intangible assets | \n \n \n 459 | \n \n \n 580 | \n
| \n \n Defined benefit plans | \n \n \n 203 | \n \n \n 237 | \n
| \n \n Tax losses and credits carried forward | \n \n \n 1,113 | \n \n \n 1,448 | \n
| \n \n Other | \n \n \n 6 | \n \n \n 231 | \n
| \n \n On December 31 | \n \n \n 1,894 | \n \n \n 2,439 | \n
| \n \n Deferred tax liabilities comprise temporary differences on | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Financial assets | \n \n \n \n \n (9) \n | \n \n \n 1 | \n
| \n \n Insurance and investment contracts | \n \n \n \n \n (1) \n | \n \n \n 56 | \n
| \n \n Deferred expenses and other intangible assets | \n \n \n - | \n \n \n 4 | \n
| \n \n Other | \n \n \n 22 | \n \n \n 3 | \n
| \n \n On December 31 | \n \n \n 13 | \n \n \n 64 | \n
The following table provides a movement schedule of net deferred tax broken-down by the items for which a deferred tax asset or liability has been recognized.
| \n | \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, 2025 | \n \n \n 1,066 | \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 Acquisitions / Additions | \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 (1) \n | \n
| \n \n Charged to income statement | \n \n \n \n \n (141) \n | \n \n \n 574 | \n \n \n \n \n (50) \n | \n \n \n \n \n (9) \n | \n \n \n \n \n (189) \n | \n \n \n \n \n (207) \n | \n \n \n \n \n (22) \n | \n
| \n \n Charged to OCI | \n \n \n \n \n (358) \n | \n \n \n 152 | \n \n \n - | \n \n \n 2 | \n \n \n 2 | \n \n \n - | \n \n \n \n \n (201) \n | \n
| \n \n Net exchange differences | \n \n \n \n \n (108) \n | \n \n \n 110 | \n \n \n \n \n (67) \n | \n \n \n \n \n (28) \n | \n \n \n \n \n (148) \n | \n \n \n \n \n (30) \n | \n \n \n \n \n (270) \n | \n
| \n \n Transfer to/from other headings | \n \n \n 8 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (8) \n | \n \n \n - | \n
| \n \n On December 31, 2025 | \n \n \n 467 | \n \n \n \n \n (344) \n | \n \n \n 459 | \n \n \n 203 | \n \n \n 1,113 | \n \n \n \n \n (17) \n | \n \n \n 1,882 | \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 808 | \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 (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 (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 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 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 (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 1,066 | \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
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 2,295 million, an amount of\u00a0tax\u00a0EUR 515 million related to tax losses carried forward (2024: gross EUR 3,577 million; tax EUR 787 million), and an\u00a0amount of tax EUR 597 million related to tax credits carried forward (2024: tax EUR 661 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\n \n < 5 years | \n \n \n \u2265 5 \u2013 10 years | \n \n \n \u2265 10 \u2013 15 years | \n \n \n Indefinitely | \n \n \n On December 31 | \n
| \n \n Gross amounts 1 | \n \n \n 2025 | \n \n \n 18 | \n \n \n 1 | \n \n \n - | \n \n \n 1,153 | \n \n \n 1,172 | \n
| \n \n 2024 | \n \n \n 41 | \n \n \n 1 | \n \n \n - | \n \n \n 976 | \n \n \n 1,018 | \n |
| \n \n Unrecognized deferred tax assets | \n \n \n 2025 | \n \n \n 11 | \n \n \n - | \n \n \n 70 | \n \n \n 307 | \n \n \n 388 | \n
| \n \n 2024 | \n \n \n 15 | \n \n \n 1 | \n \n \n 79 | \n \n \n 269 | \n \n \n 364 | \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 2025 | \n \n \n 2024 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Deferred tax asset recoverable through retention of investments until recovery or maturity | \n \n \n 3,823 | \n \n \n 6,013 | \n \n \n 803 | \n \n \n 1,263 | \n
| \n \n Deferred tax asset dependent on future taxable profits | \n \n \n 822 | \n \n \n 141 | \n \n \n 173 | \n \n \n 30 | \n
| \n \n On December 31 | \n \n \n 4,645 | \n \n \n 6,154 | \n \n \n 976 | \n \n \n 1,293 | \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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21609m13983p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Payables due to policyholders | \n \n \n 672 | \n \n \n 815 | \n
| \n \n Payables due to brokers and agents | \n \n \n 486 | \n \n \n 505 | \n
| \n \n Social security and taxes payable | \n \n \n 62 | \n \n \n 57 | \n
| \n \n Income tax payable | \n \n \n - | \n \n \n 4 | \n
| \n \n Investment creditors | \n \n \n 1,329 | \n \n \n 1,175 | \n
| \n \n Cash collateral on derivative transactions | \n \n \n 145 | \n \n \n 250 | \n
| \n \n Cash collateral on securities lent | \n \n \n 1,677 | \n \n \n 1,898 | \n
| \n \n Cash collateral - other | \n \n \n 150 | \n \n \n 92 | \n
| \n \n Lease liabilities | \n \n \n 187 | \n \n \n 216 | \n
| \n \n Other creditors | \n \n \n 1,736 | \n \n \n 2,112 | \n
| \n \n On December 31 | \n \n \n 6,445 | \n \n \n 7,124 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 6,281 | \n \n \n 6,930 | \n
| \n \n Non-current | \n \n \n 164 | \n \n \n 194 | \n
The carrying amounts disclosed are reasonable approximations of the fair values at year-end, given the predominantly current nature of the other liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22270m14198p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Payables due to policyholders | \n \n \n 672 | \n \n \n 815 | \n
| \n \n Payables due to brokers and agents | \n \n \n 486 | \n \n \n 505 | \n
| \n \n Social security and taxes payable | \n \n \n 62 | \n \n \n 57 | \n
| \n \n Income tax payable | \n \n \n - | \n \n \n 4 | \n
| \n \n Investment creditors | \n \n \n 1,329 | \n \n \n 1,175 | \n
| \n \n Cash collateral on derivative transactions | \n \n \n 145 | \n \n \n 250 | \n
| \n \n Cash collateral on securities lent | \n \n \n 1,677 | \n \n \n 1,898 | \n
| \n \n Cash collateral - other | \n \n \n 150 | \n \n \n 92 | \n
| \n \n Lease liabilities | \n \n \n 187 | \n \n \n 216 | \n
| \n \n Other creditors | \n \n \n 1,736 | \n \n \n 2,112 | \n
| \n \n On December 31 | \n \n \n 6,445 | \n \n \n 7,124 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 6,281 | \n \n \n 6,930 | \n
| \n \n Non-current | \n \n \n 164 | \n \n \n 194 | \n
The carrying amounts disclosed are reasonable approximations of the fair values at year-end, given the predominantly current nature of the other liabilities.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Accrued interest | \n \n \n 35 | \n \n \n 35 | \n
| \n \n Accrued expenses | \n \n \n 268 | \n \n \n 297 | \n
| \n \n On December 31 | \n \n \n 303 | \n \n \n 332 | \n
The disclosed carrying amounts\u00a0reasonably approximate\u00a0their fair values at year-end.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f23688m14777p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Payables due to policyholders | \n \n \n 672 | \n \n \n 815 | \n
| \n \n Payables due to brokers and agents | \n \n \n 486 | \n \n \n 505 | \n
| \n \n Social security and taxes payable | \n \n \n 62 | \n \n \n 57 | \n
| \n \n Income tax payable | \n \n \n - | \n \n \n 4 | \n
| \n \n Investment creditors | \n \n \n 1,329 | \n \n \n 1,175 | \n
| \n \n Cash collateral on derivative transactions | \n \n \n 145 | \n \n \n 250 | \n
| \n \n Cash collateral on securities lent | \n \n \n 1,677 | \n \n \n 1,898 | \n
| \n \n Cash collateral - other | \n \n \n 150 | \n \n \n 92 | \n
| \n \n Lease liabilities | \n \n \n 187 | \n \n \n 216 | \n
| \n \n Other creditors | \n \n \n 1,736 | \n \n \n 2,112 | \n
| \n \n On December 31 | \n \n \n 6,445 | \n \n \n 7,124 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 6,281 | \n \n \n 6,930 | \n
| \n \n Non-current | \n \n \n 164 | \n \n \n 194 | \n
The carrying amounts disclosed are reasonable approximations of the fair values at year-end, given the predominantly current nature of the other liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24461m14835p": { "value": "\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Payables due to policyholders | \n \n \n 672 | \n \n \n 815 | \n
| \n \n Payables due to brokers and agents | \n \n \n 486 | \n \n \n 505 | \n
| \n \n Social security and taxes payable | \n \n \n 62 | \n \n \n 57 | \n
| \n \n Income tax payable | \n \n \n - | \n \n \n 4 | \n
| \n \n Investment creditors | \n \n \n 1,329 | \n \n \n 1,175 | \n
| \n \n Cash collateral on derivative transactions | \n \n \n 145 | \n \n \n 250 | \n
| \n \n Cash collateral on securities lent | \n \n \n 1,677 | \n \n \n 1,898 | \n
| \n \n Cash collateral - other | \n \n \n 150 | \n \n \n 92 | \n
| \n \n Lease liabilities | \n \n \n 187 | \n \n \n 216 | \n
| \n \n Other creditors | \n \n \n 1,736 | \n \n \n 2,112 | \n
| \n \n On December 31 | \n \n \n 6,445 | \n \n \n 7,124 | \n
| \n | \n\n | \n\n | \n
| \n \n Current | \n \n \n 6,281 | \n \n \n 6,930 | \n
| \n \n Non-current | \n \n \n 164 | \n \n \n 194 | \n
The carrying amounts disclosed are reasonable approximations of the fair values at year-end, given the predominantly current nature of the other liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21608m13982p": { "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. As announced on the Capital Markets Day held on December 10th 2025, due to the proposed redomiciliation of the legal seat to the US, Aegon needs to report under the US capital framework, which is currently expected to occur per January 2028. The lead and scope of group supervision will be reassessed by relevant regulators at the time of the redomiciliation.
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 2025 and 2024.
\nAegon\u2019s approach to 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 achieved by allocating capital to products that offer high growth and return prospects.
\nAegon\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 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\u00a0pay sustainable remittances to the Group, and above their minimum dividend payment levels. Cash Capital at Holding is\u00a0maintained within an operating range of EUR 0.5 \u2013 1.5 billion and covers holding expenses, near-term dividends, and\u00a0contingencies, such as potential recapitalization of units. Aegon's gross financial leverage was EUR 4.9 billion per December\u00a031,\u00a02025 compared to EUR 5.2 billion per December 31, 2024.
Frequent monitoring of actual and forecasted capitalization levels across its underlying businesses is a key element of Aegon'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, 2025 1 | \n \n \n December 31, 2024 | \n
| \n \n US RBC ratio | \n \n \n 424% | \n \n \n 443% | \n
| \n \n Scottish Equitable Plc Solvency UK ratio | \n \n \n 183% | \n \n \n 186% | \n
The estimated RBC ratio in the United States decreased from 443% on December 31, 2024, to 424% on December 31, 2025, and remained above the operating level of 400%. Strong operating performance was more than offset by negative impact from remittances to the Group and adverse market impacts. The negative impact of the SGUL reinsurance transaction was offset by the capital injection from the Group.
The Solvency II ratio for Scottish Equitable Plc decreased from 186% on December 31, 2024, to 183% on December 31, 2025, and remained above the operating level of 150%.\u00a0The capital ratio decreased with 3%-points, mainly due to remittances to Aegon UK, partly offset by operating capital generation.
The ability of Aegon's operating units, principally insurance companies, to pay remittances to the holding company is constrained by the requirement that these units remain adequately capitalized at 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 1.7 billion on December 31, 2024 to EUR 1.3 billion on December 31, 2025.\u00a0 This decrease was largely due to the payment of final 2024 and interim 2025 external dividend and the share buy backs (in total EUR 1.1 billion), the capital injection to the Americas for the SGUL reinsurance transaction (EUR 0.8 billion), partly offset by the sale of a.s.r. shares decreasing Aegon's ownership to 24.12% (EUR 0.7 billion) and the free cash flows in 2025 (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 Solvency UK standards, including Aegon UK's approved Partial Internal Model.
Aegon agreed to fully adopt the Bermuda solvency framework after the transition period. Aegon announced on May 16, 2025 that it will apply an aggregation approach to calculate its group solvency under the Bermuda solvency framework after the transition period. The resulting group solvency ratio is expected to be broadly similar to the current group solvency ratio and Aegon expects no material impact on its capital management framework. As announced on the Capital Markets Day held on December 10th 2025, due to the proposed redomiciliation of the legal seat to the US, Aegon needs to report under the US capital framework, which is currently expected to occur per January 2028. The lead and scope of group supervision will be reassessed by relevant regulators at the time of the redomiciliation.
Furthermore, the BMA has concluded its review of the eligibility of Aegon\u2019s capital instruments under the Bermuda solvency framework:
Aegon\u2019s Solvency II-compliant instruments will continue to be eligible under the Bermuda solvency framework in the\u00a0corresponding tier to Solvency II, and without any limitations;
The Junior Perpetual Capital Securities (JPCS), were treated as Restricted Tier 1 until January 1, 2026, are eligible as Tier 2 Ancillary Capital following that date, until the end of 2029. Subject to a review in 2029, eligibility may be extended;
The Perpetual Cumulative Subordinated Bonds (PCSB), which in 2025 were still treated as Restricted Tier 1, lost eligibility as of January 1, 2026. On a pro-forma basis taking into account the upcoming end of the eligibility for the PCSB, Aegon\u2019s group solvency ratio would have been 7%-points lower compared with the group solvency ratio of 184% on December 31, 2025.
Aegon\u2019s debt structure and funding decisions remain driven by economic considerations, while also taking into account market circumstances, regulatory requirements, and rating agency considerations.
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, 2025 1 | \n \n \n December 31, 2024 | \n
| \n \n Group Eligible Own Funds | \n \n \n 11,901 | \n \n \n 14,030 | \n
| \n \n Group SCR | \n \n \n 6,464 | \n \n \n 7,466 | \n
| \n \n Group solvency ratio 2 | \n \n \n 184% | \n \n \n 188% | \n
Aegon\u2019s Group solvency ratio was 184% on December 31, 2025, compared with 188% on December 31, 2024.\u00a0The decrease in Group Solvency ratio of 4%-points is mainly driven by negative impacts from the SGUL reinsurance transaction in the US, shareholder returns including the 2025 interim dividend of 19 cents per share, the foreseeable 2025 final dividend of 21 cents per share, the two share buy backs of EUR 200 million completed in 2H 2025 and the announced EUR 227 million share buyback program for 1H 2026. This negative impact is partly offset by the positive impact from operating capital generation and the sale of 12.5 million a.s.r. shares.
\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\u00a0irreparable 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.
During 2025, 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, as well as 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 2025 | \n \n \n 2024 | \n
| \n \n Total shareholders\u2019 equity | \n \n \n 25 | \n \n \n 7,432 | \n \n \n 7,215 | \n
| \n \n Non-controlling interests and share options not yet exercised | \n \n \n 26, SOFP1 | \n \n \n 186 | \n \n \n 221 | \n
| \n \n CSM after tax | \n \n \n 29 | \n \n \n 6,277 | \n \n \n 6,975 | \n
| \n \n Adjusted valuation equity | \n \n | \n\n \n 13,896 | \n \n \n 14,411 | \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 1,461 | \n \n \n 1,653 | \n
| \n \n Trust pass-through securities | \n \n \n 28 | \n \n \n 99 | \n \n \n 113 | \n
| \n \n Currency revaluation other equity instruments 2 | \n \n | \n\n \n 24 | \n \n \n 52 | \n
| \n \n Hybrid leverage | \n \n | \n\n \n 3,461 | \n \n \n 3,695 | \n
| \n \n Senior leverage | \n \n \n 31 3 | \n \n \n 1,389 | \n \n \n 1,507 | \n
| \n \n Total gross financial leverage | \n \n | \n\n \n 4,850 | \n \n \n 5,201 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Total capitalization | \n \n | \n\n \n 18,746 | \n \n \n 19,612 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Gross financial leverage ratio | \n \n | \n\n \n 25.9% | \n \n \n 26.5% | \n
| \n | \n\n | \n\n | \n\n | \n
| \n \n Fixed Charge Coverage | \n \n | \n\n \n 7.5 x | \n \n \n 6.4 x | \n
Aegon is subject to legal restrictions on the amount 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21610m13984p": { "value": "\nThe estimated fair values of Aegon\u2019s assets and liabilities reflect the amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
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\u00a0prices) 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. An active market involves regular, arm\u2019s length transactions, and fair value excludes forced or distressed sales. If no active market exists or quoted market prices are not available, fair value is estimated using observable market data, such as external quotes and valuation techniques.
Unobservable inputs reflect Aegon\u2019s assumptions about market participants\u2019 pricing, including risk, based on the best available information.
Aegon maintains oversight of financial instrument valuation through a structure that ensures proper segregation of duties. Senior management, independent of investment functions, oversees valuation controls and reporting. For externally sourced fair values, independent validation is used to confirm inputs. Details of these validation processes follow.
Asset and liability valuation follows a pricing hierarchy to ensure a controlled, consistent process that relies on reliable sources with minimal manual input. Depending on asset type, the hierarchy begins with market index prices and proceeds to\u00a0third-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 2025 | \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 Shares | \n \n \n 5 | \n \n \n - | \n \n \n 5 | \n \n \n 10 | \n
| \n \n Debt securities | \n \n \n 4,165 | \n \n \n 42,717 | \n \n \n 528 | \n \n \n 47,411 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,102 | \n \n \n 207 | \n \n \n - | \n \n \n 2,308 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 27 | \n \n \n 1 | \n \n \n 28 | \n
| \n \n Total financial assets measured at FVOCI | \n \n \n 6,272 | \n \n \n 42,951 | \n \n \n 533 | \n \n \n 49,757 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 179 | \n \n \n 30 | \n \n \n 54 | \n \n \n 263 | \n
| \n \n Debt securities | \n \n \n 253 | \n \n \n 2,075 | \n \n \n 110 | \n \n \n 2,438 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,708 | \n \n \n 160 | \n \n \n - | \n \n \n 1,868 | \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 18 | \n \n \n 716 | \n \n \n 3,987 | \n \n \n 4,721 | \n
| \n \n Derivatives | \n \n \n 14 | \n \n \n 464 | \n \n \n 8 | \n \n \n 485 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 42 | \n \n \n 42 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 437 | \n \n \n 437 | \n
| \n \n Investments - Policyholder risk | \n \n \n 89,715 | \n \n \n 125,710 | \n \n \n 389 | \n \n \n 215,814 | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 91,886 | \n \n \n 129,156 | \n \n \n 5,109 | \n \n \n 226,151 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Real estate held for own use (revalued amount) \n | \n \n \n - | \n \n \n - | \n \n \n 56 | \n \n \n 56 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 98,158 | \n \n \n 172,107 | \n \n \n 5,699 | \n \n \n 275,964 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder risk | \n \n \n - | \n \n \n 85,161 | \n \n \n - | \n \n \n 85,161 | \n
| \n \n Derivatives | \n \n \n 50 | \n \n \n 1,419 | \n \n \n - | \n \n \n 1,469 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 50 | \n \n \n 86,580 | \n \n \n - | \n \n \n 86,630 | \n
| \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 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 Total financial assets measured at FVOCI | \n \n \n 7,592 | \n \n \n 46,320 | \n \n \n 803 | \n \n \n 54,715 | \n
| \n | \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 - Policyholder risk | \n \n \n 97,682 | \n \n \n 119,829 | \n \n \n 312 | \n \n \n 217,824 | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 100,146 | \n \n \n 123,414 | \n \n \n 5,567 | \n \n \n 229,127 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Real estate held for own use (revalued amount) \n | \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\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder 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
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. Transfers are identified by transaction volume and frequency, which indicate an active market. The table below shows significant transfers between Level I and Level II for financial assets and financial liabilities recorded at fair value on a recurring basis. There was no transfer between Level I and Level II during 2025.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Level I to Level II | \n \n \n Level II to Level I | \n \n \n Level I to Level II | \n \n \n Level II to Level I | \n
| \n \n Debt securities | \n \n \n - | \n \n \n - | \n \n \n 308 | \n \n \n 261 | \n
| \n \n Money market and other short-term investments | \n \n \n - | \n \n \n - | \n \n \n 48 | \n \n \n - | \n
| \n \n Total financial assets measured at FVOCI | \n \n \n - | \n \n \n - | \n \n \n 356 | \n \n \n 261 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n - | \n \n \n - | \n \n \n 11 | \n \n \n 4 | \n
| \n \n Total financial assets measured at FVPL | \n \n \n - | \n \n \n - | \n \n \n 11 | \n \n \n 4 | \n
| \n \n Total financial assets measured at fair value | \n \n \n - | \n \n \n - | \n \n \n 367 | \n \n \n 265 | \n
The 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\n \n On January 1, 2025 | \n \n \n Disposal of a business | \n \n \n Total gains / (losses) in income statement 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 difference | \n \n \n Reclas- sification | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total URGL for the period 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
| \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 - | \n \n \n 5 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 799 | \n \n \n - | \n \n \n 7 | \n \n \n 5 | \n \n \n 124 | \n \n \n \n \n (82) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (84) \n | \n \n \n - | \n \n \n 71 | \n \n \n \n \n (226) \n | \n \n \n 528 | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \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 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\n | \n
| \n \n Total FVOCI | \n \n \n 803 | \n \n \n - | \n \n \n 7 | \n \n \n 5 | \n \n \n 125 | \n \n \n \n \n (83) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (84) \n | \n \n \n - | \n \n \n 71 | \n \n \n \n \n (226) \n | \n \n \n 533 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\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 86 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 17 | \n \n \n \n \n (46) \n | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 54 | \n \n \n 7 | \n
| \n \n Debt securities | \n \n \n 107 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (1) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (13) \n | \n \n \n - | \n \n \n 23 | \n \n \n \n \n (2) \n | \n \n \n 110 | \n \n \n - | \n
| \n \n Loans | \n \n \n 82 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n 3 | \n
| \n \n Other investments | \n \n \n 4,457 | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n 463 | \n \n \n \n \n (400) \n | \n \n \n - | \n \n \n \n \n (525) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,987 | \n \n \n 16 | \n
| \n \n Derivatives | \n \n \n 9 | \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 - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n \n \n \n \n (1) \n | \n
| \n \n Investments in real estate | \n \n \n 57 | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 42 | \n \n \n 13 | \n
| \n \n Investments in real estate for policyholders | \n \n \n 457 | \n \n \n - | \n \n \n 8 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (16) \n | \n \n \n - | \n \n \n \n \n (24) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 437 | \n \n \n 19 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments - Policyholder risk | \n \n \n 312 | \n \n \n \n \n (14) \n | \n \n \n \n \n (36) \n | \n \n \n - | \n \n \n 320 | \n \n \n \n \n (38) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (127) \n | \n \n \n 389 | \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 \n Total FVPL | \n \n \n 5,567 | \n \n \n \n \n (14) \n | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n 827 | \n \n \n \n \n (530) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (614) \n | \n \n \n 1 | \n \n \n 23 | \n \n \n \n \n (129) \n | \n \n \n 5,109 | \n \n \n 57 | \n
| \n | \n\n | \n\n | \n\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 66 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n 56 | \n \n \n - | \n
| \n \n Total financial assets | \n \n \n 6,436 | \n \n \n \n \n (14) \n | \n \n \n \n \n (10) \n | \n \n \n 6 | \n \n \n 952 | \n \n \n \n \n (614) \n | \n \n \n \n \n (91) \n | \n \n \n \n \n (706) \n | \n \n \n - | \n \n \n 93 | \n \n \n \n \n (355) \n | \n \n \n 5,699 | \n \n \n 57 | \n
| \n | \n\n \n On January 1, 2024 | \n \n \n Total gains / (losses) in income statement 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 difference | \n \n \n Reclas- sification | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total URGL for the period 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 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\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 FVOCI | \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 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 | \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\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments - Policyholder 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\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 FVPL | \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 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 Total financial assets | \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 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 Total financial liabilities | \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
In\u00a02024\u00a0and\u00a02025,\u00a0Aegon\u00a0transferred\u00a0certain\u00a0financial\u00a0instruments\u00a0from\u00a0Level\u00a0I\u00a0and\u00a0II\u00a0to\u00a0Level\u00a0III\u00a0of\u00a0the\u00a0fair\u00a0value\u00a0hierarchy. The\u00a0change in level resulted from decreased market liquidity for these securities, which reduced price observability. Prior to transfer, the fair value for the Level II securities was\u00a0determined\u00a0using observable market\u00a0transactions, internal models, or corroborated broker quotes, respectively,\u00a0for the same or similar instruments.\u00a0Since\u00a0the\u00a0transfer,\u00a0all\u00a0such\u00a0assets\u00a0have\u00a0been\u00a0valued\u00a0using\u00a0valuation\u00a0models\u00a0incorporating\u00a0significant\u00a0non-market-observable\u00a0inputs or uncorroborated broker quotes.
Similarly, during 2024 and 2025, 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 the fair value could be determined using observable market transactions or corroborated broker quotes for the same or similar instruments.
\nThe\u00a0table\u00a0below\u00a0presents\u00a0information\u00a0on the valuation techniques and significant unobservable inputs used in recurring fair value measurements of\u00a0certain Level III financial instruments.
During 2024 and 2025, no valuation techniques or significant unobservable inputs were applied in the measurement of financial liabilities.
| \n | \n\n \n Valuation technique 1 | \n \n \n Significant unobservable input 2 | \n \n \n December 31, 2025 | \n \n \n \n \n Range (weighted average) \n | \n \n \n December 31, 2024 | \n \n \n \n \n Range (weighted average) \n | \n
| \n \n Financial assets | \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 5 | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 449 | \n \n \n n.a. | \n \n \n 688 | \n \n \n n.a. | \n
| \n | \n\n \n Discounted cash flow | \n \n \n Constant Prepayment Rate | \n \n \n - | \n \n \n - | \n \n \n 28 | \n \n \n 21.11% | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 79 | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 528 | \n \n | \n\n \n 799 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Other | \n \n \n Other | \n \n \n n.a. | \n \n \n 1 | \n \n \n n.a. | \n \n \n - | \n \n \n n.a. | \n
| \n \n Total FVOCI | \n \n | \n\n | \n\n \n 533 | \n \n | \n\n \n 799 | \n \n | \n
| \n | \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 50 | \n \n \n n.a. | \n \n \n 83 | \n \n \n n.a. | \n
| \n | \n\n \n Broker quote | \n \n \n n.a. | \n \n \n 4 | \n \n \n n.a. | \n \n \n 3 | \n \n \n n.a. | \n
| \n \n Debt securities | \n \n \n Broker quote | \n \n \n n.a. | \n \n \n 96 | \n \n \n n.a. | \n \n \n 94 | \n \n \n n.a. | \n
| \n | \n\n \n Other | \n \n \n n.a. | \n \n \n 14 | \n \n \n n.a. | \n \n \n 13 | \n \n \n n.a. | \n
| \n | \n\n | \n\n | \n\n \n 164 | \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 | \n\n | \n\n | \n
| \n \n Investment funds | \n \n \n Net asset value | \n \n \n n.a. | \n \n \n 3,220 | \n \n | \n\n \n 3,633 | \n \n | \n
| \n \n Tax credit investments | \n \n \n Discounted cash flow | \n \n \n Discount rate | \n \n \n 766 | \n \n \n 6.71% | \n \n \n 823 | \n \n \n 6.72% | \n
| \n \n Loans | \n \n \n Other | \n \n \n n.a. | \n \n \n 82 | \n \n | \n\n \n 82 | \n \n | \n
| \n \n Total FVPL | \n \n | \n\n | \n\n \n 4,068 | \n \n | \n\n \n 4,538 | \n \n | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Total financial assets 3 | \n \n | \n\n | \n\n \n 4,765 | \n \n | \n\n \n 5,530 | \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 amount 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 | \n ||
| \n \n On December 31, 2025 | \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 9,672 | \n \n \n - | \n \n \n 1 | \n \n \n 8,901 | \n \n \n 8,902 | \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 1,461 | \n \n \n 692 | \n \n \n 620 | \n \n \n - | \n \n \n 1,312 | \n
| \n \n Trust pass-through securities - held at amortized cost | \n \n \n 99 | \n \n \n - | \n \n \n 118 | \n \n \n - | \n \n \n 118 | \n
| \n \n Borrowings \u2013 held at amortized cost | \n \n \n 1,982 | \n \n \n 837 | \n \n \n 1,221 | \n \n \n - | \n \n \n 2,059 | \n
| \n \n Investment contracts - held at amortized cost | \n \n \n 12,652 | \n \n \n - | \n \n \n - | \n \n \n 9,473 | \n \n \n 9,473 | \n
| \n \n December 31, 2024 | \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 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
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 is 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 is the best approximation of 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.
For unquoted shares, fair value may be estimated using alternative methods, such as analyzing price/earnings or price/cash\u00a0flow\u00a0ratios\u00a0of\u00a0comparable\u00a0quoted\u00a0companies.\u00a0Valuations\u00a0are\u00a0adjusted\u00a0for\u00a0company-specific\u00a0factors\u00a0and\u00a0the\u00a0inherent\u00a0illiquidity\u00a0of unquoted investments, typically based on available market data. Management also considers\u00a0factors such as current performance, changes in market outlook, and the third-party financing environment.
Included in this category are shares in a Federal Home Loan Bank (FHLB) for an amount of EUR 36 million (2024: EUR 77 million), which are reported as part of the line-item Net asset value. An 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. Aegon values debt securities using quoted market prices when available. Prices are first sourced from indices and third-party services. If unavailable, broker quotes, mostly non-binding, are used. Each quote is reviewed by Aegon to ensure it reflects the most appropriate estimate of fair value.
When broker quotes are unavailable, 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 third-party valuation methodologies, Aegon reviews and monitors the relevant documentation from pricing services. Any methodology changes are noted and assessed for reasonableness. Aegon also conducts in-depth, sample-based reviews of prices received, aiming to corroborate assumptions, inputs, and methodologies against documented standards. Only providers with strong market presence and proven expertise are used.
Third-party pricing services often base valuations on recent trades of identical or similar securities, adjusting for time elapsed and market data. When recent trades are unavailable, they apply modeling techniques using expected cash flows and market-based discount rates.
Aegon periodically analyzes inputs from pricing services and brokers to ensure they yield reasonable fair value estimates. Asset and valuation specialists consider both qualitative and quantitative factors, including recent transactions in similar debt securities, pricing trends, and relevant market events. Additional controls include validation checks such as exception reports for significant price changes, stale prices, or unpriced securities. Back testing is also performed by comparing sample trade prices with those used in financial reporting, with significant variances investigated.
Credit ratings are considered in assessing security risk but are not solely relied upon. Aegon uses an internal process based on market-observable inputs to form its risk view.
Private placement securities (classified as fair value through OCI or profit or loss) are valued using matrix pricing from a third-party provider, based on weighted average life, credit rating, and sector. Asset specialists review the matrix monthly, comparing spreads to market data. Other valuation inputs include coupon rate, interest rate curves, and liquidity premiums, which are based on recent private placement transactions. The liquidity premium\u2019s impact on 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 monthly. If Aegon must use internal valuation models, key inputs are based on relative value analyses that compare instruments with similar collateral and risk profiles. Market-standard models may be used to reflect each transaction\u2019s collateral composition and cash flow structure. The most significant unobservable input is the liquidity premium embedded in the discount rate.
\nCorporate bond valuations are monitored and reviewed monthly. The pricing hierarchy depends on the ability to corroborate market prices. When unavailable, valuations are based on discounted cash flow using an internally calculated yield, which includes a credit spread over an observable benchmark. The credit spread combines observable and unobservable inputs. Aegon begins with a credit spread from a similar bond by the same issuer and adjusts it for unobservable factors such as subordination, liquidity, and maturity. In 2025, no corporate bonds met the threshold for internal modeling.
\nWhen available, Aegon uses quoted market prices in active markets to determine the fair value of its government debt investments. When Aegon cannot use quoted market prices, it uses market prices from indices or quotes from third-party pricing services or brokers.
\nThe fair value of assets maturing within a year is 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\u00a0not market observable.
\nThe Level III fair value of tax credit investments is determined using a discounted cash flow approach. This takes into account projected capital contributions, distributions, future tax credits, and tax benefits from operating losses. The present value of these cash flows is calculated using a discount rate, generally based on the timing and amounts of investment outflows and tax-related inflows. These inputs are unobservable. The discount rate used was 6.7% (December 31, 2024: 6.7%).
\nFair values of non-quoted investment funds are determined by management based on information from fund managers. Aegon\u00a0reviews these valuations monthly, performing analytical and trend analyses to ensure appropriateness. The net asset value is considered the best approximation of fair value.
\nFor private loans, fixed-interest mortgage loans, and other originated loans, fair value for disclosure is estimated by discounting expected cash flows at current market rates for instruments with similar yields and maturities. For fixed interest mortgage loans, the rate is adjusted for expenses, prepayment rates, lapse assumptions (unobservable), and liquidity and credit risk (observable). Increases in expense spread or prepayment assumptions reduce fair value.
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.
\nWhen quoted market prices are unavailable, alternative valuation techniques, such as option pricing or stochastic modeling, are used. The valuation techniques incorporate all factors a typical market participant would consider and, when available, are based on observable market data. 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, such as futures and certain options, are based on quoted market prices. OTC derivatives are valued using pricing models that estimate the net present value of future cash flows, incorporating observed prices from exchange-traded and OTC trades, or external pricing services. Most valuations rely on swap and volatility matrices built from current market data. Option pricing uses standard models and market levels. Complex or illiquid instruments are priced using internal models or independent third parties, with extrapolation applied for long-dated illiquid contracts to estimate unobservable inputs.
Some OTC derivatives are longevity derivatives, with payouts linked to public mortality tables. These are valued at the present value of expected payouts plus a risk margin. Expected payouts are based on the best-estimate mortality developments, while the risk margin is derived by stressing these estimates and applying a cost-of-capital approach. Depending on the swap\u2019s duration, the most significant unobservable input is either projected mortality or the discount rate.
Aegon normally mitigates counterparty credit risk in derivative contracts by entering into collateral agreements where practical and by using 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 real estate investments and real estate held for own use are conducted by independent external appraisers at least every three to five years and reviewed annually by qualified internal appraisers to ensure fair value at the reporting date. While appraisals vary by local market, they follow standards such as the International Valuation Standards, the Uniform Standards of Professional Appraisal Practice, or Investment Property Databank guidelines. Valuations are primarily based on active market prices, adjusted for differences in property characteristics. When market data is unavailable, other methods are used, considering net earning power, comparable sales, or replacement cost. Discount rates reflect asset-specific cash flow risks, while capitalization rates represent the relationship between net operating income and property value. For own-use properties, appraisers estimate the present value of potential rental income.
\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). To determine the fair value of these instruments, the IFRS level hierarchy is used. The preferred method for measuring the fair value of fair value option bonds is the quoted price (Level I). In cases where markets are less liquid or quoted prices are unavailable, Aegon\u2019s valuation policy uses a pricing hierarchy that prioritizes publicly available prices sourced 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 carried at fair value (if designated through profit or loss) or amortized cost, with fair value disclosed in the notes. These contracts are not quoted in active markets, and fair values are determined using valuation techniques such as discounted cash flow, stochastic modeling, or unit-linked pricing. All models are validated and calibrated, taking into account factors such as time value, volatility, policyholder behavior, servicing costs, and comparable instruments.
For complex products, stochastic techniques are used to model dynamic cash flows under various market scenarios. Inputs include expected market returns, volatility, return correlations, discount rates, and actuarial assumptions.
Expected returns are based on risk-free rates, including Secured Overnight Financing Rate (SOFR) swap rates, associated forward rates, the Overnight Index Swap (OIS) curve, or local government bond yields. Market volatility assumptions for each index are derived from implied volatility data and/or historical performance. Correlations between indices are based on observed returns and their interrelationships over several years. Present values of projected cash flows are calculated using current risk-free spot rates. Customer behavior assumptions, such as lapses, are aligned with those used for insurance liability valuations.
\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 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments - Aegon risk | \n \n \n 7,306 | \n \n \n 2,066 | \n \n \n 7,661 | \n \n \n 2,356 | \n
| \n \n Investments - Policyholder risk | \n \n \n - | \n \n \n 216,251 | \n \n \n - | \n \n \n 218,281 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 390 | \n \n \n - | \n \n \n 606 | \n \n \n - | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 7,695 | \n \n \n 218,317 | \n \n \n 8,267 | \n \n \n 220,637 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder risk | \n \n \n - | \n \n \n 85,161 | \n \n \n - | \n \n \n 79,078 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 597 | \n \n \n - | \n \n \n 1,331 | \n \n \n - | \n
| \n \n Total financial liabilities measured at FVPL | \n \n \n 597 | \n \n \n 85,161 | \n \n \n 1,331 | \n \n \n 79,078 | \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).
\nIn 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 for asset and liability management. In accordance with the Group\u2019s accounting policies, these assets have been designated as fair value through profit or loss.
Investments where the policyholder bears the risk include assets 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.
\nWith the exception of the financial liabilities with discretionary participation features that are not subject to the classification and measurement requirements for financial instruments, all investment contracts without discretionary participation features where the policyholder bears the risk, are carried at fair value or at the fair value of the linked assets, and are included in\u00a0the 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 2025 | \n \n \n 2024 | \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 195 | \n \n \n 25,783 | \n \n \n \n \n (1,643) \n | \n \n \n 20,912 | \n
Changes in the fair value of investment contracts without discretionary participation 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21611m13985p": { "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 2025 | \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 Shares | \n \n \n 5 | \n \n \n - | \n \n \n 5 | \n \n \n 10 | \n
| \n \n Debt securities | \n \n \n 4,165 | \n \n \n 42,717 | \n \n \n 528 | \n \n \n 47,411 | \n
| \n \n Money market and other short-term investments | \n \n \n 2,102 | \n \n \n 207 | \n \n \n - | \n \n \n 2,308 | \n
| \n \n Other investments at fair value | \n \n \n - | \n \n \n 27 | \n \n \n 1 | \n \n \n 28 | \n
| \n \n Total financial assets measured at FVOCI | \n \n \n 6,272 | \n \n \n 42,951 | \n \n \n 533 | \n \n \n 49,757 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Shares | \n \n \n 179 | \n \n \n 30 | \n \n \n 54 | \n \n \n 263 | \n
| \n \n Debt securities | \n \n \n 253 | \n \n \n 2,075 | \n \n \n 110 | \n \n \n 2,438 | \n
| \n \n Money market and other short-term investments | \n \n \n 1,708 | \n \n \n 160 | \n \n \n - | \n \n \n 1,868 | \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 18 | \n \n \n 716 | \n \n \n 3,987 | \n \n \n 4,721 | \n
| \n \n Derivatives | \n \n \n 14 | \n \n \n 464 | \n \n \n 8 | \n \n \n 485 | \n
| \n \n Investments in real estate | \n \n \n - | \n \n \n - | \n \n \n 42 | \n \n \n 42 | \n
| \n \n Investments in real estate for policyholders | \n \n \n - | \n \n \n - | \n \n \n 437 | \n \n \n 437 | \n
| \n \n Investments - Policyholder risk | \n \n \n 89,715 | \n \n \n 125,710 | \n \n \n 389 | \n \n \n 215,814 | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 91,886 | \n \n \n 129,156 | \n \n \n 5,109 | \n \n \n 226,151 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Real estate held for own use (revalued amount) \n | \n \n \n - | \n \n \n - | \n \n \n 56 | \n \n \n 56 | \n
| \n \n Total financial assets measured at fair value | \n \n \n 98,158 | \n \n \n 172,107 | \n \n \n 5,699 | \n \n \n 275,964 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder risk | \n \n \n - | \n \n \n 85,161 | \n \n \n - | \n \n \n 85,161 | \n
| \n \n Derivatives | \n \n \n 50 | \n \n \n 1,419 | \n \n \n - | \n \n \n 1,469 | \n
| \n \n Total financial liabilities measured at fair value | \n \n \n 50 | \n \n \n 86,580 | \n \n \n - | \n \n \n 86,630 | \n
| \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 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 Total financial assets measured at FVOCI | \n \n \n 7,592 | \n \n \n 46,320 | \n \n \n 803 | \n \n \n 54,715 | \n
| \n | \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 - Policyholder risk | \n \n \n 97,682 | \n \n \n 119,829 | \n \n \n 312 | \n \n \n 217,824 | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 100,146 | \n \n \n 123,414 | \n \n \n 5,567 | \n \n \n 229,127 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n \n \n Real estate held for own use (revalued amount) \n | \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\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder 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
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. Transfers are identified by transaction volume and frequency, which indicate an active market. The table below shows significant transfers between Level I and Level II for financial assets and financial liabilities recorded at fair value on a recurring basis. There was no transfer between Level I and Level II during 2025.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Level I to Level II | \n \n \n Level II to Level I | \n \n \n Level I to Level II | \n \n \n Level II to Level I | \n
| \n \n Debt securities | \n \n \n - | \n \n \n - | \n \n \n 308 | \n \n \n 261 | \n
| \n \n Money market and other short-term investments | \n \n \n - | \n \n \n - | \n \n \n 48 | \n \n \n - | \n
| \n \n Total financial assets measured at FVOCI | \n \n \n - | \n \n \n - | \n \n \n 356 | \n \n \n 261 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Debt securities | \n \n \n - | \n \n \n - | \n \n \n 11 | \n \n \n 4 | \n
| \n \n Total financial assets measured at FVPL | \n \n \n - | \n \n \n - | \n \n \n 11 | \n \n \n 4 | \n
| \n \n Total financial assets measured at fair value | \n \n \n - | \n \n \n - | \n \n \n 367 | \n \n \n 265 | \n
The 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\n \n On January 1, 2025 | \n \n \n Disposal of a business | \n \n \n Total gains / (losses) in income statement 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 difference | \n \n \n Reclas- sification | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total URGL for the period 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
| \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 - | \n \n \n 5 | \n \n \n - | \n
| \n \n Debt securities | \n \n \n 799 | \n \n \n - | \n \n \n 7 | \n \n \n 5 | \n \n \n 124 | \n \n \n \n \n (82) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (84) \n | \n \n \n - | \n \n \n 71 | \n \n \n \n \n (226) \n | \n \n \n 528 | \n \n \n - | \n
| \n \n Other | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n \n \n (1) \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 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\n | \n
| \n \n Total FVOCI | \n \n \n 803 | \n \n \n - | \n \n \n 7 | \n \n \n 5 | \n \n \n 125 | \n \n \n \n \n (83) \n | \n \n \n \n \n (86) \n | \n \n \n \n \n (84) \n | \n \n \n - | \n \n \n 71 | \n \n \n \n \n (226) \n | \n \n \n 533 | \n \n \n - | \n
| \n | \n\n | \n\n | \n\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 86 | \n \n \n - | \n \n \n 7 | \n \n \n - | \n \n \n 17 | \n \n \n \n \n (46) \n | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 54 | \n \n \n 7 | \n
| \n \n Debt securities | \n \n \n 107 | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 2 | \n \n \n \n \n (1) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (13) \n | \n \n \n - | \n \n \n 23 | \n \n \n \n \n (2) \n | \n \n \n 110 | \n \n \n - | \n
| \n \n Loans | \n \n \n 82 | \n \n \n - | \n \n \n 4 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (5) \n | \n \n \n - | \n \n \n \n \n (10) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 82 | \n \n \n 3 | \n
| \n \n Other investments | \n \n \n 4,457 | \n \n \n - | \n \n \n \n \n (9) \n | \n \n \n - | \n \n \n 463 | \n \n \n \n \n (400) \n | \n \n \n - | \n \n \n \n \n (525) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 3,987 | \n \n \n 16 | \n
| \n \n Derivatives | \n \n \n 9 | \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 - | \n \n \n - | \n \n \n - | \n \n \n 8 | \n \n \n \n \n (1) \n | \n
| \n \n Investments in real estate | \n \n \n 57 | \n \n \n - | \n \n \n 10 | \n \n \n - | \n \n \n - | \n \n \n \n \n (23) \n | \n \n \n - | \n \n \n \n \n (4) \n | \n \n \n 1 | \n \n \n - | \n \n \n - | \n \n \n 42 | \n \n \n 13 | \n
| \n \n Investments in real estate for policyholders | \n \n \n 457 | \n \n \n - | \n \n \n 8 | \n \n \n - | \n \n \n 12 | \n \n \n \n \n (16) \n | \n \n \n - | \n \n \n \n \n (24) \n | \n \n \n - | \n \n \n - | \n \n \n - | \n \n \n 437 | \n \n \n 19 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments - Policyholder risk | \n \n \n 312 | \n \n \n \n \n (14) \n | \n \n \n \n \n (36) \n | \n \n \n - | \n \n \n 320 | \n \n \n \n \n (38) \n | \n \n \n - | \n \n \n \n \n (28) \n | \n \n \n - | \n \n \n - | \n \n \n \n \n (127) \n | \n \n \n 389 | \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 \n Total FVPL | \n \n \n 5,567 | \n \n \n \n \n (14) \n | \n \n \n \n \n (17) \n | \n \n \n - | \n \n \n 827 | \n \n \n \n \n (530) \n | \n \n \n \n \n (5) \n | \n \n \n \n \n (614) \n | \n \n \n 1 | \n \n \n 23 | \n \n \n \n \n (129) \n | \n \n \n 5,109 | \n \n \n 57 | \n
| \n | \n\n | \n\n | \n\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 66 | \n \n \n - | \n \n \n - | \n \n \n 1 | \n \n \n \n \n (1) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n \n \n (7) \n | \n \n \n \n \n (1) \n | \n \n \n - | \n \n \n - | \n \n \n 56 | \n \n \n - | \n
| \n \n Total financial assets | \n \n \n 6,436 | \n \n \n \n \n (14) \n | \n \n \n \n \n (10) \n | \n \n \n 6 | \n \n \n 952 | \n \n \n \n \n (614) \n | \n \n \n \n \n (91) \n | \n \n \n \n \n (706) \n | \n \n \n - | \n \n \n 93 | \n \n \n \n \n (355) \n | \n \n \n 5,699 | \n \n \n 57 | \n
| \n | \n\n \n On January 1, 2024 | \n \n \n Total gains / (losses) in income statement 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 difference | \n \n \n Reclas- sification | \n \n \n Trans- | \n \n \n Trans- | \n \n \n On | \n \n \n Total URGL for the period 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 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\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 FVOCI | \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 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 | \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\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investments - Policyholder 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\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 FVPL | \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 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 Total financial assets | \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 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 Total financial liabilities | \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
In\u00a02024\u00a0and\u00a02025,\u00a0Aegon\u00a0transferred\u00a0certain\u00a0financial\u00a0instruments\u00a0from\u00a0Level\u00a0I\u00a0and\u00a0II\u00a0to\u00a0Level\u00a0III\u00a0of\u00a0the\u00a0fair\u00a0value\u00a0hierarchy. The\u00a0change in level resulted from decreased market liquidity for these securities, which reduced price observability. Prior to transfer, the fair value for the Level II securities was\u00a0determined\u00a0using observable market\u00a0transactions, internal models, or corroborated broker quotes, respectively,\u00a0for the same or similar instruments.\u00a0Since\u00a0the\u00a0transfer,\u00a0all\u00a0such\u00a0assets\u00a0have\u00a0been\u00a0valued\u00a0using\u00a0valuation\u00a0models\u00a0incorporating\u00a0significant\u00a0non-market-observable\u00a0inputs or uncorroborated broker quotes.
Similarly, during 2024 and 2025, 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 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24601m14196p": { "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 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments - Aegon risk | \n \n \n 7,306 | \n \n \n 2,066 | \n \n \n 7,661 | \n \n \n 2,356 | \n
| \n \n Investments - Policyholder risk | \n \n \n - | \n \n \n 216,251 | \n \n \n - | \n \n \n 218,281 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 390 | \n \n \n - | \n \n \n 606 | \n \n \n - | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 7,695 | \n \n \n 218,317 | \n \n \n 8,267 | \n \n \n 220,637 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder risk | \n \n \n - | \n \n \n 85,161 | \n \n \n - | \n \n \n 79,078 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 597 | \n \n \n - | \n \n \n 1,331 | \n \n \n - | \n
| \n \n Total financial liabilities measured at FVPL | \n \n \n 597 | \n \n \n 85,161 | \n \n \n 1,331 | \n \n \n 79,078 | \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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24602m14201p": { "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 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments - Aegon risk | \n \n \n 7,306 | \n \n \n 2,066 | \n \n \n 7,661 | \n \n \n 2,356 | \n
| \n \n Investments - Policyholder risk | \n \n \n - | \n \n \n 216,251 | \n \n \n - | \n \n \n 218,281 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 390 | \n \n \n - | \n \n \n 606 | \n \n \n - | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 7,695 | \n \n \n 218,317 | \n \n \n 8,267 | \n \n \n 220,637 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder risk | \n \n \n - | \n \n \n 85,161 | \n \n \n - | \n \n \n 79,078 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 597 | \n \n \n - | \n \n \n 1,331 | \n \n \n - | \n
| \n \n Total financial liabilities measured at FVPL | \n \n \n 597 | \n \n \n 85,161 | \n \n \n 1,331 | \n \n \n 79,078 | \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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24603m14202p": { "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 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Trading | \n \n \n Designated | \n \n \n Trading | \n \n \n Designated | \n
| \n \n Investments - Aegon risk | \n \n \n 7,306 | \n \n \n 2,066 | \n \n \n 7,661 | \n \n \n 2,356 | \n
| \n \n Investments - Policyholder risk | \n \n \n - | \n \n \n 216,251 | \n \n \n - | \n \n \n 218,281 | \n
| \n \n Derivatives with positive values not designated as hedges | \n \n \n 390 | \n \n \n - | \n \n \n 606 | \n \n \n - | \n
| \n \n Total financial assets measured at FVPL | \n \n \n 7,695 | \n \n \n 218,317 | \n \n \n 8,267 | \n \n \n 220,637 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n
| \n \n Investment contracts without DPF - Policyholder risk | \n \n \n - | \n \n \n 85,161 | \n \n \n - | \n \n \n 79,078 | \n
| \n \n Derivatives with negative values not designated as hedges | \n \n \n 597 | \n \n \n - | \n \n \n 1,331 | \n \n \n - | \n
| \n \n Total financial liabilities measured at FVPL | \n \n \n 597 | \n \n \n 85,161 | \n \n \n 1,331 | \n \n \n 79,078 | \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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22210m14172p": { "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 2026. 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 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Purchase | \n \n \n Sale | \n \n \n Purchase | \n \n \n Sale | \n
| \n \n Mortgage loans | \n \n \n 85 | \n \n \n - | \n \n \n 189 | \n \n \n - | \n
| \n \n Private loans | \n \n \n 356 | \n \n \n - | \n \n \n 291 | \n \n \n - | \n
| \n \n Other | \n \n \n 921 | \n \n \n - | \n \n \n 1,205 | \n \n \n - | \n
Aegon has committed, through certain subsidiaries, to invest in private loans, mortgage loans, and investment funds.
Mortgage loans represent undrawn mortgage loan facilities provided and outstanding proposals on mortgages. Private loans are commitments in Aegon's portfolio of private placement securities that have not yet settled and been funded.\u00a0Other investments contracted include future purchases of interests in investment funds and limited partnerships.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Guarantees | \n \n \n 864 | \n \n \n 918 | \n
| \n \n Other guarantees | \n \n \n - | \n \n \n 6 | \n
Guarantees include those associated with the sale of investments in low-income housing tax credit partnerships in the\u00a0United\u00a0States, which may be invoked 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.\u00a0The standby letters of credit amounts shown above reflect 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, 2025 (2024: EUR 0 million), while other guarantees have EUR 1 million cash collateral at the end of 2025 (2024: EUR 1 million).
\n39.3.1 Contractual obligations at Business Unit level
In 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 concluded the transition of administration of all Transamerica business in July 2025.
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 2025, outstanding transition and conversion charges are estimated to amount to approximately GBP 6.8 million, of which GBP 3.7 million is expected to be recorded over the next year with a further GBP 3.1 million in 2027, 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\u00a0TLB 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.
39.3.2 Contractual obligations at Aegon Ltd. level
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, 2025, the letter of credit arrangements utilized by captives to provide collateral to affiliates amounted\u00a0to\u00a0EUR 90 million (2024: EUR 88 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 1,562 million (2024: EUR 1,808 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, 2025.
Aegon faces significant risks of litigation as well as regulatory exams, investigations and actions relating to its and its\u00a0subsidiaries\u2019 businesses. Aegon is also subject to applicable regulations 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 adequately accounted for in the tax position, the ultimate outcome of tax audits or litigation may differ 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\u00a0losses 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 equity market and interest rate fluctuations. 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.
The existence of potential claims may remain unknown for extended periods after the events that gave rise to them. 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\u00a0litigation 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\u00a0relationship to economic losses or final awards. As a result, Aegon cannot predict the effect of litigation, investigations, or other actions on its business.
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 has reached an agreement to resolve a putative class action alleging that it improperly failed to pay bonuses to policyowners on a certain block of universal life policies. The matter is fully provisioned. The settlement is subject to final court approval.
Several US insurers, including Aegon subsidiaries, have been named in litigation over 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\u00a0cover 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. A settlement was agreed between the\u00a0parties in 2025. The matter is fully provisioned. The settlement remains subject to final court approval.
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 then dismissed the case. The plaintiff appealed the court\u2019s dismissal but subsequently passed away. An application to substitute plaintiff-appellant was granted. Aegon has no material assets located in Nigeria.
In 2025, several US-based Aegon subsidiaries reached a settlement in a putative class action alleging that the\u00a0subsidiaries mischaracterized agents as independent contractors instead of employees.\u00a0In April 2025, the settlement was\u00a0formally approved by the court which is consistent with the provision raised in 2024. The settlement was paid in November\u00a02025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22213m14174p": { "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 2026. 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 2025 | \n \n \n 2024 | \n ||
| \n | \n\n \n Purchase | \n \n \n Sale | \n \n \n Purchase | \n \n \n Sale | \n
| \n \n Mortgage loans | \n \n \n 85 | \n \n \n - | \n \n \n 189 | \n \n \n - | \n
| \n \n Private loans | \n \n \n 356 | \n \n \n - | \n \n \n 291 | \n \n \n - | \n
| \n \n Other | \n \n \n 921 | \n \n \n - | \n \n \n 1,205 | \n \n \n - | \n
Aegon has committed, through certain subsidiaries, to invest in private loans, mortgage loans, and investment funds.
Mortgage loans represent undrawn mortgage loan facilities provided and outstanding proposals on mortgages. Private loans are commitments in Aegon's portfolio of private placement securities that have not yet settled and been funded.\u00a0Other investments contracted include future purchases of interests in investment funds and limited partnerships.
\n| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Guarantees | \n \n \n 864 | \n \n \n 918 | \n
| \n \n Other guarantees | \n \n \n - | \n \n \n 6 | \n
Guarantees include those associated with the sale of investments in low-income housing tax credit partnerships in the\u00a0United\u00a0States, which may be invoked 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.\u00a0The standby letters of credit amounts shown above reflect 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, 2025 (2024: EUR 0 million), while other guarantees have EUR 1 million cash collateral at the end of 2025 (2024: EUR 1 million).
\n39.3.1 Contractual obligations at Business Unit level
In 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 concluded the transition of administration of all Transamerica business in July 2025.
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 2025, outstanding transition and conversion charges are estimated to amount to approximately GBP 6.8 million, of which GBP 3.7 million is expected to be recorded over the next year with a further GBP 3.1 million in 2027, 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\u00a0TLB 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.
39.3.2 Contractual obligations at Aegon Ltd. level
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, 2025, the letter of credit arrangements utilized by captives to provide collateral to affiliates amounted\u00a0to\u00a0EUR 90 million (2024: EUR 88 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 1,562 million (2024: EUR 1,808 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, 2025.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n
| \n \n Guarantees | \n \n \n 864 | \n \n \n 918 | \n
| \n \n Other guarantees | \n \n \n - | \n \n \n 6 | \n
Guarantees include those associated with the sale of investments in low-income housing tax credit partnerships in the\u00a0United\u00a0States, which may be invoked 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.\u00a0The standby letters of credit amounts shown above reflect 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, 2025 (2024: EUR 0 million), while other guarantees have EUR 1 million cash collateral at the end of 2025 (2024: EUR 1 million).
\nAegon faces significant risks of litigation as well as regulatory exams, investigations and actions relating to its and its\u00a0subsidiaries\u2019 businesses. Aegon is also subject to applicable regulations 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 adequately accounted for in the tax position, the ultimate outcome of tax audits or litigation may differ 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\u00a0losses 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 equity market and interest rate fluctuations. 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.
The existence of potential claims may remain unknown for extended periods after the events that gave rise to them. 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\u00a0litigation 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\u00a0relationship to economic losses or final awards. As a result, Aegon cannot predict the effect of litigation, investigations, or other actions on its business.
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 has reached an agreement to resolve a putative class action alleging that it improperly failed to pay bonuses to policyowners on a certain block of universal life policies. The matter is fully provisioned. The settlement is subject to final court approval.
Several US insurers, including Aegon subsidiaries, have been named in litigation over 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\u00a0cover 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. A settlement was agreed between the\u00a0parties in 2025. The matter is fully provisioned. The settlement remains subject to final court approval.
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 then dismissed the case. The plaintiff appealed the court\u2019s dismissal but subsequently passed away. An application to substitute plaintiff-appellant was granted. Aegon has no material assets located in Nigeria.
In 2025, several US-based Aegon subsidiaries reached a settlement in a putative class action alleging that the\u00a0subsidiaries mischaracterized agents as independent contractors instead of employees.\u00a0In April 2025, the settlement was\u00a0formally approved by the court which is consistent with the provision raised in 2024. The settlement was paid in November\u00a02025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22280m14203p": { "value": "\nThe following table presents 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. It also presents the carrying amounts of the associated liabilities.
| \n | \n\n \n 2025 | \n \n \n 2024 | \n ||||
| \n | \n\n \n FVOCI | \n \n \n FVPL | \n \n \n FVOCI | \n \n \n FVPL | \n ||
| \n | \n\n \n Debt securities | \n \n \n Debt securities | \n \n \n Investments - Policyholder risk | \n \n \n Debt securities | \n \n \n Debt securities | \n \n \n Investments - Policyholder risk | \n
| \n \n Carrying amount of transferred assets | \n \n \n 1,629 | \n \n \n 1 | \n \n \n 88 | \n \n \n 1,628 | \n \n \n 1 | \n \n \n 39 | \n
| \n \n Carrying amount of associated liabilities | \n \n \n 1,677 | \n \n \n - | \n \n \n - | \n \n \n 1,897 | \n \n \n 1 | \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 of the risks and rewards associated with the transferred assets, including 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 recognized for the same amount, as Aegon is obligated to return it 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\u00a0note\u00a040.3 Assets accepted and note\u00a040.4 Assets pledged for an analysis of collateral accepted and pledged in relation to\u00a0securities lending and repurchase agreements.
\nAegon receives collateral for 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.
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 2025 | \n \n \n 2024 | \n
| \n \n Carrying amount of transferred financial assets | \n \n \n 1,718 | \n \n \n 1,668 | \n
| \n \n Fair value of cash collateral received | \n \n \n 1,677 | \n \n \n 1,898 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 92 | \n \n \n 41 | \n
| \n \n Net exposure | \n \n \n \n \n (51) \n | \n \n \n \n \n (271) \n | \n
| \n \n Reverse repurchase agreements | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Cash paid for reverse repurchase agreements | \n \n \n 289 | \n \n \n 324 | \n
| \n \n Fair value of non-cash collateral received | \n \n \n 311 | \n \n \n 343 | \n
| \n \n Net exposure | \n \n \n \n \n (22) \n | \n \n \n \n \n (20) \n | \n
The above items are conducted under terms that are usual and customary for standard securities lending activities, as well as requirements set by exchanges where the bank acts as an intermediary.
For 2024 and 2025, 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.
In addition, Aegon can receive collateral on derivative transactions. The credit support agreement will typically specify the threshold at which collateral must 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22367m14237p": { "value": "\nThere were no significant acquisitions in 2025.
\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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21443m13900p": { "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. Aegon's voting power in these subsidiaries equals its shareholdings.
| \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n
| \n \n \n \n Transamerica Casualty Insurance Company, Cedar Rapids, Iowa (United States) \n | \n \n \n Aegon Investment Solutions Ltd., Edinburgh | \n \n \n \n \n Aegon Espa\u00f1a S.A.U. de Seguros y Reaseguros, Madrid (Spain) \n | \n \n \n \n \n Aegon Asset Management Holding B.V., The Hague (The Netherlands) \n | \n
| \n \n \n \n Transamerica Corporation, Wilmington, Delaware (United States) \n | \n \n \n Aegon Investments Ltd., London | \n \n \n \n \n Transamerica Life (Bermuda) Ltd., Hamilton (Bermuda) \n | \n \n \n \n \n Aegon Asset Management UK plc, Edinburgh (United Kingdom) \n | \n
| \n \n \n \n Transamerica Financial Life Insurance Company, Harrison, New York (United States) \n | \n \n \n Cofunds Limited, London | \n \n | \n\n \n \n \n Aegon Investment Management B.V., The Hague (The Netherlands) \n | \n
| \n \n \n \n Transamerica Life Insurance Company, Cedar Rapids, Iowa (United States) \n | \n \n \n Scottish Equitable plc, Edinburgh | \n \n | \n\n \n \n \n Aegon USA Investment Management, LLC, Cedar Rapids (United States) \n | \n
| \n \n \n \n World Financial Group Insurance Agency, LLC, Cedar Rapids, Iowa (United States) \n | \n \n \n Origen Financial Services Limited, Farnborough | \n \n | \n\n \n \n \n Aegon USA Realty Advisors, LLC, Des Moines (United States) \n | \n
| \n \n \n \n World Financial Group Holding Company of Canada Inc., Toronto (Canada) \n | \n \n | \n\n | \n\n | \n
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 defined 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 Seguradora 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 are equal to\u00a0the shareholdings, unless stated otherwise.
\nDawn Holdings LLC, Wilmington, Delaware (United States) (19.99%)
ASR Nederland N.V., Utrecht (24.12%)
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 to the Audit and Risk Committee and the ESG Committee, subject to certain conditions.
For as long as Aegon holds more than 20% of the shares, the affirmative vote of the Non-independent 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 following needs the unanimous vote of all Supervisory Directors in office and the affirmative vote of the Non-independent 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 between 10% and 20% of the\u00a0shares.\u00a0If Aegon holds less than 10%, the relationship agreement from which the abovementioned rights derive is automatically terminated.
\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 2025 | \n \n \n 2024 | \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 20 | \n \n \n - | \n \n \n 8 | \n
| \n \n Liabilities 1 | \n \n \n - | \n \n \n 77 | \n \n \n - | \n \n \n 110 | \n
| \n | \n\n \n 2025 | \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 Joint ventures | \n \n \n Associates | \n
| \n \n Income 2 | \n \n \n 52 | \n \n \n 89 | \n \n \n 47 | \n \n \n 96 | \n \n \n 42 | \n \n \n 49 | \n
| \n \n Expenses 3 | \n \n \n 2 | \n \n \n 68 | \n \n \n 1 | \n \n \n 73 | \n \n \n 1 | \n \n \n 33 | \n
As part of the reinsurance transaction on part of the Secondary Guarantee Universal Life portfolio, Transamerica Life Insurance Company paid a premium of approximately EUR 3.5 billion by transferring EUR 3.2 billion of assets to the reinsurance subsidiary of Dawn Holdings and approximately EUR 0.3 billion via a funds withheld arrangement.
For dividends and capital injections related to joint ventures and associates, please refer to note 21 Investments in joint ventures and associates.
\nThe following table shows remuneration expenses, with amounts reflecting time spent on the Board.
| \n \n Remuneration expenses | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Non-Executive Directors | \n \n \n 1.9 | \n \n \n 1.8 | \n \n \n 1.3 | \n
| \n \n Executive Director | \n \n \n 5.4 | \n \n \n 5.0 | \n \n \n 0.9 | \n
| \n \n Executive Board | \n \n \n - | \n \n \n - | \n \n \n 4.3 | \n
| \n \n Key Management 1 | \n \n \n 32.3 | \n \n \n 31.9 | \n \n \n 27.9 | \n
| \n \n in fixed compensation | \n \n \n 11.2 | \n \n \n 13.7 | \n \n \n 13.8 | \n
| \n \n in cash-based variable compensation | \n \n \n 8.7 | \n \n \n 6.9 | \n \n \n 4.6 | \n
| \n \n in share-based variable compensation | \n \n \n 9.0 | \n \n \n 7.4 | \n \n \n 5.0 | \n
| \n \n in pension contributions | \n \n \n 1.5 | \n \n \n 2.6 | \n \n \n 3.1 | \n
| \n \n in other benefits | \n \n \n 1.9 | \n \n \n 1.3 | \n \n \n 1.3 | \n
Fixed compensation of Key Management included severance payments of EUR 2 million in 2024, no such payments were paid in 2023 and 2025. Key\u00a0Management consisted of all members of the Board and Executive Committee (see the chapter Composition of the Boards for\u00a0more details).
Additional information on the remuneration of the Executive Director and Non-Executive Directors is disclosed in the Remuneration Report.
\nShares held in Aegon on December 31, 2025, by Mr. Friese amount to 299,323 (2024: 160,357; 2023: 83,122). The shares held in Aegon mentioned above do not exceed 1% of the total outstanding share capital at the reporting date. At the reporting date, Mr. Friese has no loans with Aegon and no outstanding balances, such as guarantees or advance payments.
\n| \n \n Shares held in Aegon on December 31 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Dona D. Young1 | \n \n \n - | \n \n \n 13,260 | \n
| \n \n Corien M. Wortmann | \n \n \n 5,819 | \n \n \n - | \n
| \n \n Albert Benchimol | \n \n \n 5,819 | \n \n \n - | \n
| \n \n Mark A. Ellman | \n \n \n 5,819 | \n \n \n - | \n
| \n \n Karen Fawcett | \n \n \n 3,802 | \n \n \n - | \n
| \n \n Jack McGarry | \n \n \n 5,819 | \n \n \n - | \n
| \n \n Caroline Ramsay | \n \n \n 3,375 | \n \n \n - | \n
| \n \n Thomas Wellauer | \n \n \n 3,993 | \n \n \n - | \n
| \n \n Total | \n \n \n 34,446 | \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. At the reporting date, the Non-Executive Directors have no loans with Aegon and no outstanding balances, such as guarantees or advance payments.
\nOther related party transactions include, among others, transactions between Aegon Ltd. and Vereniging Aegon. Transactions with Vereniging Aegon are discussed in the\u00a0Major shareholders\u00a0section.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22197m14165p": { "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. Aegon's voting power in these subsidiaries equals its shareholdings.
| \n \n Americas | \n \n \n United Kingdom | \n \n \n International | \n \n \n Asset Management | \n
| \n \n \n \n Transamerica Casualty Insurance Company, Cedar Rapids, Iowa (United States) \n | \n \n \n Aegon Investment Solutions Ltd., Edinburgh | \n \n \n \n \n Aegon Espa\u00f1a S.A.U. de Seguros y Reaseguros, Madrid (Spain) \n | \n \n \n \n \n Aegon Asset Management Holding B.V., The Hague (The Netherlands) \n | \n
| \n \n \n \n Transamerica Corporation, Wilmington, Delaware (United States) \n | \n \n \n Aegon Investments Ltd., London | \n \n \n \n \n Transamerica Life (Bermuda) Ltd., Hamilton (Bermuda) \n | \n \n \n \n \n Aegon Asset Management UK plc, Edinburgh (United Kingdom) \n | \n
| \n \n \n \n Transamerica Financial Life Insurance Company, Harrison, New York (United States) \n | \n \n \n Cofunds Limited, London | \n \n | \n\n \n \n \n Aegon Investment Management B.V., The Hague (The Netherlands) \n | \n
| \n \n \n \n Transamerica Life Insurance Company, Cedar Rapids, Iowa (United States) \n | \n \n \n Scottish Equitable plc, Edinburgh | \n \n | \n\n \n \n \n Aegon USA Investment Management, LLC, Cedar Rapids (United States) \n | \n
| \n \n \n \n World Financial Group Insurance Agency, LLC, Cedar Rapids, Iowa (United States) \n | \n \n \n Origen Financial Services Limited, Farnborough | \n \n | \n\n \n \n \n Aegon USA Realty Advisors, LLC, Des Moines (United States) \n | \n
| \n \n \n \n World Financial Group Holding Company of Canada Inc., Toronto (Canada) \n | \n \n | \n\n | \n\n | \n
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 defined 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f22231m14184p": { "value": "\nThe following table shows remuneration expenses, with amounts reflecting time spent on the Board.
| \n \n Remuneration expenses | \n \n \n 2025 | \n \n \n 2024 | \n \n \n 2023 | \n
| \n \n Non-Executive Directors | \n \n \n 1.9 | \n \n \n 1.8 | \n \n \n 1.3 | \n
| \n \n Executive Director | \n \n \n 5.4 | \n \n \n 5.0 | \n \n \n 0.9 | \n
| \n \n Executive Board | \n \n \n - | \n \n \n - | \n \n \n 4.3 | \n
| \n \n Key Management 1 | \n \n \n 32.3 | \n \n \n 31.9 | \n \n \n 27.9 | \n
| \n \n in fixed compensation | \n \n \n 11.2 | \n \n \n 13.7 | \n \n \n 13.8 | \n
| \n \n in cash-based variable compensation | \n \n \n 8.7 | \n \n \n 6.9 | \n \n \n 4.6 | \n
| \n \n in share-based variable compensation | \n \n \n 9.0 | \n \n \n 7.4 | \n \n \n 5.0 | \n
| \n \n in pension contributions | \n \n \n 1.5 | \n \n \n 2.6 | \n \n \n 3.1 | \n
| \n \n in other benefits | \n \n \n 1.9 | \n \n \n 1.3 | \n \n \n 1.3 | \n
Fixed compensation of Key Management included severance payments of EUR 2 million in 2024, no such payments were paid in 2023 and 2025. Key\u00a0Management consisted of all members of the Board and Executive Committee (see the chapter Composition of the Boards for\u00a0more details).
Additional information on the remuneration of the Executive Director and Non-Executive Directors is disclosed in the Remuneration Report.
\nShares held in Aegon on December 31, 2025, by Mr. Friese amount to 299,323 (2024: 160,357; 2023: 83,122). The shares held in Aegon mentioned above do not exceed 1% of the total outstanding share capital at the reporting date. At the reporting date, Mr. Friese has no loans with Aegon and no outstanding balances, such as guarantees or advance payments.
\n| \n \n Shares held in Aegon on December 31 | \n \n \n 2025 | \n \n \n 2024 | \n
| \n \n Dona D. Young1 | \n \n \n - | \n \n \n 13,260 | \n
| \n \n Corien M. Wortmann | \n \n \n 5,819 | \n \n \n - | \n
| \n \n Albert Benchimol | \n \n \n 5,819 | \n \n \n - | \n
| \n \n Mark A. Ellman | \n \n \n 5,819 | \n \n \n - | \n
| \n \n Karen Fawcett | \n \n \n 3,802 | \n \n \n - | \n
| \n \n Jack McGarry | \n \n \n 5,819 | \n \n \n - | \n
| \n \n Caroline Ramsay | \n \n \n 3,375 | \n \n \n - | \n
| \n \n Thomas Wellauer | \n \n \n 3,993 | \n \n \n - | \n
| \n \n Total | \n \n \n 34,446 | \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. At the reporting date, the Non-Executive Directors have no loans with Aegon and no outstanding balances, such as guarantees or advance payments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f24149m14775p": { "value": "\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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory", "language": "en", "entity": "scheme:O4QK7KMMK83ITNTHUG69", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f21442m13899p": { "value": "\nOn January 12, 2026,\u00a0Aegon began a\u00a0EUR\u00a0227\u00a0million\u00a0share\u00a0buyback, which includes EUR 200 million of the EUR 400 million share buyback program announced on\u00a0December 10,\u00a02025. This tranche has been expanded to include\u00a0EUR 27 million to meet Aegon\u2019s obligations resulting from its share-based compensation plans for senior management and is expected to be completed by June 30, 2026.
\nLard Friese
David Herzog
Albert Benchimol
Mark A. Ellman
Karen Fawcett
Lori Fouch\u00e9
Jack McGarry
Jay Ralph
Caroline Ramsay
Thomas Wellauer
Corien M. Wortmann