SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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AEGON N.V.
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(Registrant)
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Date: May 11, 2017
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By
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/s/ J.H.P.M. van Rossum
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J.H.P.M. van Rossum
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Head of Corporate Financial Center
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Condensed Consolidated Interim Financial Statements 1Q 2017
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1
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Table of contents
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Unaudited
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2
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Condensed Consolidated Interim Financial Statements 1Q 2017
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Condensed consolidated income statement
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EUR
millions
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Notes
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1Q 2017
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1Q 2016
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Premium income
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4
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5,710
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5,836
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Investment income
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5
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1,863
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1,935
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Fee and commission income
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621
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602
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Other
revenues
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1
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1
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Total revenues
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8,196
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8,374
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Income from reinsurance ceded
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751
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720
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Results from financial transactions
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6
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6,694
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2,050
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Other
income
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7
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9
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-
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Total income
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15,650
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11,146
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Benefits and expenses
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8
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15,055
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10,901
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Impairment charges / (reversals)
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9
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13
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40
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Interest charges
and related fees
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93
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97
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Total charges
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15,161
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11,039
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Share in profit
/ (loss) of joint ventures
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34
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31
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Income / (loss) before tax
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523
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138
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Income tax
(expense) / benefit
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(145
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)
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6
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Net income /
(loss)
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378
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143
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Net income / (loss) attributable
to:
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Owners of Aegon N.V.
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378
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143
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Non-controlling
interests
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-
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-
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Earnings per share (EUR per share)
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16
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Basic earnings per common share
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0.17
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0.05
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Basic earnings per common share B
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-
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-
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Diluted earnings per common share
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0.17
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0.05
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Diluted
earnings per common share B
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-
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-
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Unaudited
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Condensed Consolidated Interim Financial Statements 1Q 2017
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3
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Condensed consolidated statement of comprehensive income
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EUR millions
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1Q 2017
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1Q 2016
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Net income / (loss)
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378
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143
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Other comprehensive income:
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Items that will not be reclassified to profit
or loss:
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Changes in revaluation reserve real estate held
for own use
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-
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(2
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Remeasurements of defined benefit plans
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265
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(501
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Income tax relating to items that will not be
reclassified
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(67
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135
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Items that may be reclassified subsequently to
profit or loss:
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Gains / (losses) on revaluation of
available-for-sale investments
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467
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1,841
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Gains / (losses) transferred to the income
statement on disposal and impairment of available-for-sale investments
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(80
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(30
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Changes in cash flow hedging reserve
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4
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304
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Movement in foreign currency translation and net
foreign investment hedging reserve
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(218
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(734
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Equity movements of joint ventures
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(8
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3
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Equity movements of associates
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(1
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1
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Income tax relating to items that may be
reclassified
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(116
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(762
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Other
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2
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6
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Other comprehensive income / (loss) for the
period
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248
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261
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Total
comprehensive income / (loss)
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626
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405
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Total comprehensive income / (loss)
attributable to:
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Owners of Aegon N.V.
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626
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398
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Non-controlling interests
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-
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7
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Unaudited
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4
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Condensed Consolidated Interim Financial Statements 1Q 2017
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Condensed
consolidated statement of financial position
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Mar. 31,
2017
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Dec. 31,
2016
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EUR
millions
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Notes
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Assets
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Cash and cash equivalents
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11,037
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11,347
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Assets held for sale
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18
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8,866
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8,705
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Investments
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10
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155,847
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156,813
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Investments for account of policyholders
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11
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206,294
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203,610
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Derivatives
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12
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7,676
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8,318
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Investments in joint ventures
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1,648
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1,614
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Investments in associates
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288
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270
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Reinsurance assets
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10,848
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11,208
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Deferred expenses
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14
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11,435
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11,423
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Other assets and receivables
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9,675
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10,805
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Intangible
assets
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15
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1,841
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1,820
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Total assets
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425,455
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425,935
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Equity and liabilities
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Shareholders equity
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21,505
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20,913
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Other equity
instruments
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3,804
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3,797
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Issued capital and reserves attributable to
owners of Aegon N.V.
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25,308
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24,710
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Non-controlling
interests
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23
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23
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Group equity
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25,332
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24,734
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Subordinated borrowings
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768
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767
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Trust pass-through securities
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152
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156
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Insurance contracts
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117,831
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119,569
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Insurance contracts for account of
policyholders
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123,118
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120,929
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Investment contracts
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17,807
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19,572
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Investment contracts for account of
policyholders
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85,365
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84,774
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Derivatives
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|
12
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7,987
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8,878
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Borrowings
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|
17
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15,021
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13,153
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Liabilities held for sale
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|
18
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|
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8,976
|
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|
8,816
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Other
liabilities
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|
23,098
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24,588
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Total
liabilities
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400,123
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401,201
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Total
equity and liabilities
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|
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425,455
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425,935
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Unaudited
|
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|
|
|
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Condensed Consolidated Interim Financial Statements 1Q 2017
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5
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Condensed
consolidated statement of changes in equity
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EUR millions
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Share
capital
1
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Retained
earnings
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Revaluation
reserves
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Remeasurement
of defined
benefit plans
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Other
reserves
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Other equity
instruments
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Issued
capital and
reserves
2
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Non-
controlling
interests
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Total
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Three months ended March 31,
2017
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At beginning of year
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|
8,193
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|
|
7,812
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|
|
5,381
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|
|
|
(1,820
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)
|
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|
1,347
|
|
|
|
3,797
|
|
|
|
24,710
|
|
|
|
23
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|
|
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24,734
|
|
|
|
|
|
|
|
|
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Net income / (loss) recognized in the income
statement
|
|
|
-
|
|
|
|
378
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|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
378
|
|
|
|
-
|
|
|
|
378
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|
|
|
|
|
|
|
|
|
|
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Other comprehensive income:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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Items that will not be reclassified to
profit or loss:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of defined benefit plans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
265
|
|
|
|
-
|
|
|
|
-
|
|
|
|
265
|
|
|
|
-
|
|
|
|
265
|
|
Income tax relating to items that will not be
reclassified
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(68
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(67
|
)
|
|
|
-
|
|
|
|
(67
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)
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently
to profit or loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains / (losses) on revaluation of
available-for-sale investments
|
|
|
-
|
|
|
|
-
|
|
|
|
467
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
467
|
|
|
|
-
|
|
|
|
467
|
|
Gains / (losses) transferred to income statement
on disposal and impairment of available-for-sale investments
|
|
|
-
|
|
|
|
-
|
|
|
|
(80
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(80
|
)
|
|
|
-
|
|
|
|
(80
|
)
|
Changes in cash flow hedging reserve
|
|
|
-
|
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
|
4
|
|
Movement in foreign currency translation and net
foreign investment hedging reserves
|
|
|
-
|
|
|
|
-
|
|
|
|
(49
|
)
|
|
|
10
|
|
|
|
(179
|
)
|
|
|
-
|
|
|
|
(218
|
)
|
|
|
-
|
|
|
|
(218
|
)
|
Equity movements of joint ventures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8
|
)
|
|
|
-
|
|
|
|
(8
|
)
|
|
|
-
|
|
|
|
(8
|
)
|
Equity movements of associates
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
Income tax relating to items that may be
reclassified
|
|
|
-
|
|
|
|
-
|
|
|
|
(124
|
)
|
|
|
-
|
|
|
|
8
|
|
|
|
-
|
|
|
|
(116
|
)
|
|
|
-
|
|
|
|
(116
|
)
|
Other
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
2
|
|
Total other
comprehensive income
|
|
|
-
|
|
|
|
1
|
|
|
|
218
|
|
|
|
208
|
|
|
|
(180
|
)
|
|
|
-
|
|
|
|
247
|
|
|
|
-
|
|
|
|
248
|
|
Total comprehensive income / (loss) for
2017
|
|
|
-
|
|
|
|
379
|
|
|
|
218
|
|
|
|
208
|
|
|
|
(180
|
)
|
|
|
-
|
|
|
|
626
|
|
|
|
-
|
|
|
|
626
|
|
|
|
|
|
|
|
|
|
|
|
Coupons on non-cumulative subordinated
notes
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(7
|
)
|
Coupons on perpetual securities
|
|
|
-
|
|
|
|
(27
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(27
|
)
|
|
|
-
|
|
|
|
(27
|
)
|
Incentive plans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6
|
|
|
|
6
|
|
|
|
-
|
|
|
|
6
|
|
At end of period
|
|
|
8,193
|
|
|
|
8,157
|
|
|
|
5,600
|
|
|
|
(1,612
|
)
|
|
|
1,167
|
|
|
|
3,804
|
|
|
|
25,308
|
|
|
|
23
|
|
|
|
25,332
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of year
|
|
|
8,387
|
|
|
|
8,075
|
|
|
|
6,471
|
|
|
|
(1,532
|
)
|
|
|
1,283
|
|
|
|
3,800
|
|
|
|
26,485
|
|
|
|
9
|
|
|
|
26,494
|
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss) recognized in the income
statement
|
|
|
-
|
|
|
|
143
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
143
|
|
|
|
-
|
|
|
|
143
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to profit
or loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in revaluation reserve real estate held
for own use
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(2
|
)
|
Remeasurements of defined benefit plans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(501
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(501
|
)
|
|
|
-
|
|
|
|
(501
|
)
|
Income tax relating to items that will not be
reclassified
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
136
|
|
|
|
-
|
|
|
|
-
|
|
|
|
135
|
|
|
|
-
|
|
|
|
135
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to
profit or loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains / (losses) on revaluation of
available-for-sale investments
|
|
|
-
|
|
|
|
-
|
|
|
|
1,841
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,841
|
|
|
|
-
|
|
|
|
1,841
|
|
Gains / (losses) transferred to income statement
on disposal and impairment of available-for-sale investments
|
|
|
-
|
|
|
|
-
|
|
|
|
(30
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(30
|
)
|
|
|
-
|
|
|
|
(30
|
)
|
Changes in cash flow hedging reserve
|
|
|
-
|
|
|
|
-
|
|
|
|
304
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
304
|
|
|
|
-
|
|
|
|
304
|
|
Movement in foreign currency translation and net
foreign investment hedging reserves
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
53
|
|
|
|
(787
|
)
|
|
|
-
|
|
|
|
(734
|
)
|
|
|
-
|
|
|
|
(734
|
)
|
Equity movements of joint ventures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
Equity movements of associates
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
Income tax relating to items that may be
reclassified
|
|
|
-
|
|
|
|
-
|
|
|
|
(776
|
)
|
|
|
-
|
|
|
|
14
|
|
|
|
-
|
|
|
|
(762
|
)
|
|
|
-
|
|
|
|
(762
|
)
|
Other
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
7
|
|
|
|
6
|
|
Total other
comprehensive income
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
1,337
|
|
|
|
(313
|
)
|
|
|
(769
|
)
|
|
|
-
|
|
|
|
255
|
|
|
|
7
|
|
|
|
261
|
|
Total comprehensive income / (loss) for
2016
|
|
|
-
|
|
|
|
143
|
|
|
|
1,337
|
|
|
|
(313
|
)
|
|
|
(769
|
)
|
|
|
-
|
|
|
|
398
|
|
|
|
7
|
|
|
|
405
|
|
|
|
|
|
|
|
|
|
|
|
Issuance and purchase of (treasury)
shares
|
|
|
-
|
|
|
|
(200
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(200
|
)
|
|
|
-
|
|
|
|
(200
|
)
|
Coupons on non-cumulative subordinated
notes
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(7
|
)
|
Coupons on perpetual securities
|
|
|
-
|
|
|
|
(28
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(28
|
)
|
|
|
-
|
|
|
|
(28
|
)
|
Incentive
plans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11
|
|
|
|
11
|
|
|
|
-
|
|
|
|
11
|
|
At end of
period
|
|
|
8,387
|
|
|
|
7,984
|
|
|
|
7,808
|
|
|
|
(1,845
|
)
|
|
|
513
|
|
|
|
3,811
|
|
|
|
26,659
|
|
|
|
16
|
|
|
|
26,674
|
|
1
|
For a breakdown of share capital please refer to note 16.
|
2
|
Issued capital and reserves attributable to owners of Aegon N.V.
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
6
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated cash flow statement
|
|
EUR millions
|
|
YTD 2017
|
|
|
YTD 2016
|
|
|
|
|
Cash flow from operating
activities
|
|
|
(2,097
|
)
|
|
|
2,799
|
|
|
|
|
Purchases and disposals of intangible
assets
|
|
|
(1
|
)
|
|
|
(8
|
)
|
Purchases and disposals of equipment and other
assets
|
|
|
(21
|
)
|
|
|
(8
|
)
|
Purchases and disposals of businesses and
subsidiaries
|
|
|
(51
|
)
|
|
|
-
|
|
Purchases,
disposals and dividends joint ventures and associates
|
|
|
(27
|
)
|
|
|
23
|
|
Cash flow from investing
activities
|
|
|
(100
|
)
|
|
|
6
|
|
|
|
|
Purchase of treasury shares
|
|
|
-
|
|
|
|
(200
|
)
|
Issuances, repurchases and coupons of
perpetuals
|
|
|
(36
|
)
|
|
|
(37
|
)
|
Issuances, repurchases and coupons of
non-cumulative subordinated notes
|
|
|
(10
|
)
|
|
|
(9
|
)
|
Issuances and
repayments of borrowings
|
|
|
1,957
|
|
|
|
(1,431
|
)
|
Cash flow from financing
activities
|
|
|
1,911
|
|
|
|
(1,677
|
)
|
|
|
|
Net increase /
(decrease) in cash and cash equivalents
|
|
|
(286
|
)
|
|
|
1,128
|
|
Net cash and cash equivalents at
January 1
|
|
|
11,347
|
|
|
|
9,593
|
|
Effects of
changes in foreign exchange rates
|
|
|
(26
|
)
|
|
|
(146
|
)
|
Net cash and
cash equivalents at end of period
|
|
|
11,034
|
|
|
|
10,576
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
11,037
|
|
|
|
10,616
|
|
Cash and cash equivalents classified as Assets
held for sale
|
|
|
-
|
|
|
|
-
|
|
Bank overdrafts
classified as other liabilities
|
|
|
(3
|
)
|
|
|
(40
|
)
|
Net cash
and cash equivalents
|
|
|
11,034
|
|
|
|
10,576
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
7
|
Notes to the Condensed consolidated interim financial statements
Amounts in EUR millions, unless otherwise stated
Aegon N.V., incorporated and domiciled in the Netherlands, is a public limited liability company organized under Dutch law and recorded in the Commercial Register of The
Hague under number 27076669 and with its registered address at Aegonplein 50, 2591 TV, The Hague, the Netherlands. Aegon N.V. serves as the holding company for the Aegon Group and has listings of its common shares in Amsterdam and New York.
Aegon N.V. (or the Company) and its subsidiaries (Aegon or the Group) have life insurance and pensions operations in more than 20
countries in the Americas, Europe and Asia and are also active in savings and asset management operations, accident and health insurance, general insurance and to a limited extent banking operations. Headquarters are located in The Hague, the
Netherlands. The Group employs over 29,000 people worldwide.
1. Basis of presentation
The condensed consolidated interim financial statements as at and for the period ended, March 31, 2017, have been prepared in accordance with IAS 34 Interim
Financial Reporting, as adopted by the European Union (hereafter IFRS). They do not include all of the information required for a full set of financial statements prepared in accordance with IFRS and should therefore be read
together with the 2016 consolidated financial statements of Aegon N.V. as included in Aegons Annual Report for 2016. Aegons Annual Report for 2016 is available on its website (aegon.com).
The condensed consolidated interim financial statements have been prepared in accordance with the 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. Certain amounts in prior periods may have been reclassified to conform to the current year presentation. These
reclassifications had no effect on net income, shareholders equity or earnings per share. The condensed consolidated interim financial statements as at, and for the period ended March 31, 2017, were approved by the Executive Board on
May 10, 2017.
The condensed consolidated interim financial statements are presented in euro (EUR) and all values are rounded to the nearest million unless
otherwise stated. The consequence is that the rounded amounts may not add up to the rounded total in all cases.
The published figures in these condensed
consolidated interim financial statements are unaudited.
|
|
|
Unaudited
|
|
|
|
|
|
|
|
8
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
|
2. Significant accounting policies
All accounting policies and methods of computation applied in the condensed consolidated interim financial statements are the same as those applied in the 2016
consolidated financial statements.
New IFRS accounting standards effective
The following standards, interpretations, amendments to standards and interpretations became effective in 2017, but have not yet been endorsed by the European Union:
t
|
|
IAS 7 Amendment Disclosure initiative;
|
t
|
|
IAS 12 Recognition of Deferred Tax Assets for Unrealised Losses; and
|
t
|
|
Annual improvements 2014-2016 Cycle.
|
None of these revised standards and interpretations will significantly impact the
financial position or the condensed consolidated interim financial statements.
For a complete overview of IFRS standards, published before January 1, 2017,
that will be applied in future years, and were not early adopted by the Group, please refer to Aegons Annual Report for 2016.
Taxes
Taxes on income for the three month period, ended March 31, 2017, are calculated using the tax rate that is estimated to be applicable to total annual earnings.
Judgments and critical accounting estimates
Preparing the condensed
consolidated interim financial statements requires management to make judgments, estimates and assumptions, including the likelihood, timing or amount of future transactions or events, that affect the application of accounting policies and the
reported amounts of assets and liabilities, income and expense. Actual results may differ from the estimates made.
In preparing the condensed consolidated interim
financial statements, significant judgments made by management in applying the Groups accounting policies and the key sources of estimating uncertainty were not significantly different than those that were applied to the consolidated financial
statements as at and for the year ended December 31, 2016.
Exchange rates
Assets and liabilities are translated at the closing rates on the reporting date. Income, expenses and capital transactions (such as dividends) are translated at average
exchange rates or at the prevailing rates on the transaction date, if more appropriate. The following exchange rates are applied for the condensed consolidated interim financial statements:
Closing exchange rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
|
GBP
|
|
March 31, 2017
|
|
|
1
|
|
|
|
EUR
|
|
|
|
1.0696
|
|
|
|
0.8553
|
|
December 31, 2016
|
|
|
1
|
|
|
|
EUR
|
|
|
|
1.0548
|
|
|
|
0.8536
|
|
Weighted average exchange rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
|
GBP
|
|
Three months ended March 31, 2017
|
|
|
1
|
|
|
|
EUR
|
|
|
|
1.0647
|
|
|
|
0.8594
|
|
Three months ended March 31, 2016
|
|
|
1
|
|
|
|
EUR
|
|
|
|
1.1023
|
|
|
|
0.7698
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
9
|
3. Segment information
3.1 Income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR millions
|
|
Americas
|
|
|
The
Netherlands
|
|
|
United
Kingdom
|
|
|
Central &
Eastern
Europe
|
|
|
Spain &
Portugal
|
|
|
Europe
|
|
|
Asia
|
|
|
Asset
Management
|
|
|
Holding and
other
activities
|
|
|
Eliminations
|
|
|
Segment
total
|
|
|
Joint
ventures and
associates
eliminations
|
|
|
Consolidated
|
|
Three months
ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying
earnings before tax
|
|
|
313
|
|
|
|
118
|
|
|
|
33
|
|
|
|
17
|
|
|
|
1
|
|
|
|
169
|
|
|
|
12
|
|
|
|
37
|
|
|
|
(44
|
)
|
|
|
1
|
|
|
|
488
|
|
|
|
9
|
|
|
|
496
|
|
Fair value
items
|
|
|
(20
|
)
|
|
|
(35
|
)
|
|
|
(21
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(56
|
)
|
|
|
1
|
|
|
|
-
|
|
|
|
22
|
|
|
|
-
|
|
|
|
(53
|
)
|
|
|
(22
|
)
|
|
|
(75
|
)
|
Realized gains /
(losses) on investments
|
|
|
10
|
|
|
|
62
|
|
|
|
3
|
|
|
|
1
|
|
|
|
-
|
|
|
|
67
|
|
|
|
(3
|
)
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
76
|
|
|
|
(1
|
)
|
|
|
75
|
|
Impairment
charges
|
|
|
(6
|
)
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(16
|
)
|
|
|
-
|
|
|
|
(16
|
)
|
Impairment
reversals
|
|
|
2
|
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
|
4
|
|
Other income /
(charges)
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
8
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
6
|
|
Run-off businesses
|
|
|
31
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
31
|
|
|
|
-
|
|
|
|
31
|
|
Income / (loss)
before tax
|
|
|
328
|
|
|
|
141
|
|
|
|
24
|
|
|
|
18
|
|
|
|
1
|
|
|
|
183
|
|
|
|
10
|
|
|
|
39
|
|
|
|
(24
|
)
|
|
|
1
|
|
|
|
536
|
|
|
|
(14
|
)
|
|
|
523
|
|
Income tax (expense) / benefit
|
|
|
(86
|
)
|
|
|
(30
|
)
|
|
|
(18
|
)
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
(53
|
)
|
|
|
(14
|
)
|
|
|
(12
|
)
|
|
|
6
|
|
|
|
-
|
|
|
|
(159
|
)
|
|
|
14
|
|
|
|
(145
|
)
|
Net income / (loss)
|
|
|
242
|
|
|
|
111
|
|
|
|
6
|
|
|
|
15
|
|
|
|
(1
|
)
|
|
|
131
|
|
|
|
(4
|
)
|
|
|
27
|
|
|
|
(18
|
)
|
|
|
1
|
|
|
|
378
|
|
|
|
-
|
|
|
|
378
|
|
Inter-segment
underlying earnings
|
|
|
(19
|
)
|
|
|
(30
|
)
|
|
|
(22
|
)
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
(56
|
)
|
|
|
(1
|
)
|
|
|
57
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life insurance
gross premiums
|
|
|
1,965
|
|
|
|
693
|
|
|
|
1,887
|
|
|
|
103
|
|
|
|
54
|
|
|
|
2,737
|
|
|
|
325
|
|
|
|
-
|
|
|
|
2
|
|
|
|
(2
|
)
|
|
|
5,026
|
|
|
|
(195
|
)
|
|
|
4,832
|
|
Accident and
health insurance
|
|
|
564
|
|
|
|
110
|
|
|
|
8
|
|
|
|
-
|
|
|
|
81
|
|
|
|
200
|
|
|
|
33
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
796
|
|
|
|
(13
|
)
|
|
|
783
|
|
General insurance
|
|
|
-
|
|
|
|
40
|
|
|
|
-
|
|
|
|
55
|
|
|
|
24
|
|
|
|
118
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
(1
|
)
|
|
|
118
|
|
|
|
(24
|
)
|
|
|
94
|
|
Total gross
premiums
|
|
|
2,529
|
|
|
|
843
|
|
|
|
1,895
|
|
|
|
157
|
|
|
|
160
|
|
|
|
3,055
|
|
|
|
358
|
|
|
|
-
|
|
|
|
2
|
|
|
|
(3
|
)
|
|
|
5,941
|
|
|
|
(231
|
)
|
|
|
5,710
|
|
Investment
income
|
|
|
972
|
|
|
|
548
|
|
|
|
272
|
|
|
|
11
|
|
|
|
9
|
|
|
|
840
|
|
|
|
65
|
|
|
|
1
|
|
|
|
79
|
|
|
|
(77
|
)
|
|
|
1,880
|
|
|
|
(17
|
)
|
|
|
1,863
|
|
Fee and commission
income
|
|
|
396
|
|
|
|
87
|
|
|
|
61
|
|
|
|
10
|
|
|
|
4
|
|
|
|
161
|
|
|
|
16
|
|
|
|
153
|
|
|
|
-
|
|
|
|
(60
|
)
|
|
|
666
|
|
|
|
(45
|
)
|
|
|
621
|
|
Other revenues
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
3
|
|
|
|
(1
|
)
|
|
|
1
|
|
Total revenues
|
|
|
3,898
|
|
|
|
1,477
|
|
|
|
2,228
|
|
|
|
178
|
|
|
|
173
|
|
|
|
4,057
|
|
|
|
440
|
|
|
|
154
|
|
|
|
82
|
|
|
|
(140
|
)
|
|
|
8,490
|
|
|
|
(294
|
)
|
|
|
8,196
|
|
Inter-segment revenues
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
60
|
|
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR millions
|
|
Americas
|
|
|
The
Netherlands
|
|
|
United
Kingdom
|
|
|
Central &
Eastern
Europe
|
|
|
Spain &
Portugal
|
|
|
Europe
|
|
|
Asia
|
|
|
Asset
Management
|
|
|
Holding and
other
activities
|
|
|
Eliminations
|
|
|
Segment
total
|
|
|
Joint
ventures and
associates
eliminations
|
|
|
Consolidated
|
|
Three months
ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying
earnings before tax
|
|
|
283
|
|
|
|
128
|
|
|
|
23
|
|
|
|
15
|
|
|
|
3
|
|
|
|
169
|
|
|
|
-
|
|
|
|
45
|
|
|
|
(37
|
)
|
|
|
1
|
|
|
|
462
|
|
|
|
6
|
|
|
|
468
|
|
Fair value
items
|
|
|
(220
|
)
|
|
|
(105
|
)
|
|
|
34
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(71
|
)
|
|
|
3
|
|
|
|
-
|
|
|
|
(70
|
)
|
|
|
-
|
|
|
|
(358
|
)
|
|
|
(13
|
)
|
|
|
(370
|
)
|
Realized gains /
(losses) on investments
|
|
|
33
|
|
|
|
18
|
|
|
|
1
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
17
|
|
|
|
4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
54
|
|
|
|
(1
|
)
|
|
|
53
|
|
Impairment
charges
|
|
|
(34
|
)
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
(42
|
)
|
|
|
-
|
|
|
|
(42
|
)
|
Impairment
reversals
|
|
|
2
|
|
|
|
4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
6
|
|
Other income /
(charges)
|
|
|
(6
|
)
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
-
|
|
|
|
(6
|
)
|
Run-off businesses
|
|
|
28
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
28
|
|
|
|
-
|
|
|
|
28
|
|
Income / (loss)
before tax
|
|
|
87
|
|
|
|
40
|
|
|
|
58
|
|
|
|
16
|
|
|
|
2
|
|
|
|
116
|
|
|
|
6
|
|
|
|
45
|
|
|
|
(110
|
)
|
|
|
1
|
|
|
|
145
|
|
|
|
(7
|
)
|
|
|
138
|
|
Income tax (expense) / benefit
|
|
|
7
|
|
|
|
(7
|
)
|
|
|
(6
|
)
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
(17
|
)
|
|
|
(5
|
)
|
|
|
(13
|
)
|
|
|
26
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
7
|
|
|
|
6
|
|
Net income / (loss)
|
|
|
94
|
|
|
|
33
|
|
|
|
52
|
|
|
|
14
|
|
|
|
-
|
|
|
|
99
|
|
|
|
1
|
|
|
|
32
|
|
|
|
(84
|
)
|
|
|
1
|
|
|
|
143
|
|
|
|
-
|
|
|
|
143
|
|
Inter-segment
underlying earnings
|
|
|
(55
|
)
|
|
|
(12
|
)
|
|
|
(13
|
)
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
(28
|
)
|
|
|
21
|
|
|
|
65
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life insurance
gross premiums
|
|
|
1,770
|
|
|
|
858
|
|
|
|
2,015
|
|
|
|
98
|
|
|
|
49
|
|
|
|
3,020
|
|
|
|
299
|
|
|
|
-
|
|
|
|
1
|
|
|
|
(21
|
)
|
|
|
5,069
|
|
|
|
(170
|
)
|
|
|
4,899
|
|
Accident and
health insurance
|
|
|
548
|
|
|
|
121
|
|
|
|
11
|
|
|
|
-
|
|
|
|
72
|
|
|
|
204
|
|
|
|
33
|
|
|
|
-
|
|
|
|
4
|
|
|
|
(1
|
)
|
|
|
787
|
|
|
|
(11
|
)
|
|
|
775
|
|
General insurance
|
|
|
-
|
|
|
|
115
|
|
|
|
-
|
|
|
|
47
|
|
|
|
23
|
|
|
|
184
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
184
|
|
|
|
(23
|
)
|
|
|
161
|
|
Total gross
premiums
|
|
|
2,318
|
|
|
|
1,094
|
|
|
|
2,026
|
|
|
|
145
|
|
|
|
144
|
|
|
|
3,408
|
|
|
|
331
|
|
|
|
-
|
|
|
|
5
|
|
|
|
(22
|
)
|
|
|
6,040
|
|
|
|
(204
|
)
|
|
|
5,836
|
|
Investment
income
|
|
|
916
|
|
|
|
522
|
|
|
|
431
|
|
|
|
11
|
|
|
|
10
|
|
|
|
974
|
|
|
|
57
|
|
|
|
1
|
|
|
|
81
|
|
|
|
(81
|
)
|
|
|
1,948
|
|
|
|
(13
|
)
|
|
|
1,935
|
|
Fee and commission
income
|
|
|
418
|
|
|
|
86
|
|
|
|
23
|
|
|
|
9
|
|
|
|
3
|
|
|
|
121
|
|
|
|
14
|
|
|
|
167
|
|
|
|
-
|
|
|
|
(64
|
)
|
|
|
656
|
|
|
|
(54
|
)
|
|
|
602
|
|
Other revenues
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
1
|
|
Total revenues
|
|
|
3,652
|
|
|
|
1,702
|
|
|
|
2,480
|
|
|
|
164
|
|
|
|
157
|
|
|
|
4,504
|
|
|
|
403
|
|
|
|
168
|
|
|
|
87
|
|
|
|
(167
|
)
|
|
|
8,646
|
|
|
|
(272
|
)
|
|
|
8,374
|
|
Inter-segment revenues
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
20
|
|
|
|
64
|
|
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2 Performance measure
Aegons segment information is prepared by consolidating on a proportionate basis Aegons joint ventures and associated companies.
Performance measure
A performance measure of reporting segments utilized by
the Company is underlying earnings before tax. Underlying earnings before tax reflects Aegons profit from underlying business operations and excludes components that relate to accounting mismatches that are dependent on market volatility,
updates to best estimate actuarial and economic assumptions and model updates or events that are considered outside the normal course of business. Note that, as disclosed in the 2016 Annual Report, Aegon changed the measurement of underlying
earnings before tax to exclude the impact of actuarial assumption updates. In addition, updates to economic assumptions previously recorded in fair value items, are recorded in Other income / (charges). These changes had no effect on 1Q 2016
numbers.
Aegon believes that its performance measure, underlying earnings before tax, provides meaningful information about the underlying results of Aegons
business, including insight into the financial measures that Aegons senior management uses in managing the business. Among other things, Aegons senior management is compensated based in part on Aegons results against targets using
underlying earnings before tax. While many other insurers in Aegons peer group present substantially similar performance measures, the performance measures presented in this document may nevertheless differ from the performance measures
presented by other insurers. There is no standardized meaning to these measures under IFRS or any other recognized set of accounting standards.
|
|
|
Unaudited
|
|
|
|
|
|
|
|
10
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
|
The reconciliation from underlying earnings before tax to income before tax, being the most comparable IFRS measure, is
presented in the tables in this note.
The items that are excluded from underlying earnings before tax as described further below are: fair value items, realized
gain or losses on investments, impairment charges/reversals, other income or charges, run-off businesses and share in earnings of joint ventures and associates.
Fair value items
Fair value items include the over- or underperformance of
investments and guarantees held at fair value for which the expected long-term return is included in underlying earnings before tax.
In addition, hedge
ineffectiveness on hedge transactions, fair value changes on economic hedges without natural offset in earnings and for which no hedge accounting is applied and fair value movements on real estate are included under fair value items.
Certain assets held by Aegon are carried at fair value and managed on a total return basis, with no offsetting changes in the valuation of related liabilities. These
include assets such as investments in hedge funds, private equities, real estate (limited partnerships), convertible bonds and structured products. Underlying earnings before tax exclude any over- or underperformance compared to managements
long-term expected return on assets. Based on current holdings and asset returns, the long-term expected return on an annual basis is 8-10%, depending on asset class, including cash income and market value changes. The expected earnings from these
asset classes are net of deferred policy acquisition costs (DPAC) where applicable.
In addition, certain products offered by Aegon Americas contain guarantees and
are reported on a fair value basis and the total return annuities and guarantees on 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. Included in underlying earnings before tax is a long-term expected return on these products and excluded is any over- or underperformance compared to managements expected return.
The fair value movements of certain guarantees and the fair value change of derivatives that hedge certain risks on these guarantees of Aegon the Netherlands, VA Europe
(included in United Kingdom) and Japan are excluded from underlying earnings before tax, and the long-term expected return for these guarantees is set at zero. In addition, fair value items include market related results on our loyalty bonus
reserves in the United Kingdom. The value of these reserves are directly related to policyholder investments which value is directly impacted by movements in equity and bond markets.
Holding and other activities include certain issued bonds that are held at fair value through profit or loss (FVTPL). The interest rate risk on these bonds is hedged
using swaps. The fair value movement resulting from changes in Aegons credit spread used in the valuation of these bonds are excluded from underlying earnings before tax and reported under fair value items.
Realized gains or losses on investments
Includes realized gains and losses on
available-for-sale investments, mortgage loans and other loan portfolios.
Impairment charges/reversals
Impairment charges include impairments on available-for-sale debt securities, shares including the effect of deferred policyholder acquisition costs, mortgage loans and
other loan portfolios at amortized cost, joint ventures and associates. Impairment reversals include reversals on available-for-sale debt securities.
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
11
|
Other income or charges
Other
income or charges includes: a) items which cannot be directly allocated to a specific line of business; b) the impact of assumption and model updates used to support calculations of our liabilities for insurance and investment contracts sold to
policyholders and related assets; and c) items that are outside the normal course of business, including restructuring charges. In the condensed consolidated interim financial statements, these restructuring charges are included in operating
expenses. Actuarial assumption and model updates are recorded in Claims and Benefits in the IFRS income statement.
Run-off businesses
Includes underlying results of business units where management has decided to exit the market and to run-off the existing block of business. Currently, this line includes
results related to the run-off of the institutional spread-based business, structured settlements blocks of business, bank-owned and corporate-owned life insurance (BOLI/COLI) business, and the sale of the life reinsurance business in the United
States. Aegon has other blocks of business for which sales have been discontinued and of which the earnings are included in underlying earnings before tax.
Share
in earnings of joint ventures and associates
Earnings from Aegons joint ventures in the Netherlands, Mexico, Spain, Portugal, China and Japan and
Aegons associates in India, Brazil, the Netherlands, United Kingdom, Mexico and France are reported on an underlying earnings before tax basis.
|
|
|
Unaudited
|
|
|
|
|
|
|
|
12
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
|
3.2 Investments
Amounts included in the tables on investments are presented on an IFRS basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
Americas
|
|
|
The
Netherlands
|
|
|
United
Kingdom
|
|
|
Central &
Eastern
Europe
|
|
|
Spain &
Portugal
|
|
|
Europe
|
|
|
Asia
|
|
|
Asset
Management
|
|
|
Holdings
and other
activities
|
|
|
Eliminations
|
|
|
EUR millions
Total
EUR
|
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
783
|
|
|
|
623
|
|
|
|
104
|
|
|
|
40
|
|
|
|
5
|
|
|
|
772
|
|
|
|
-
|
|
|
|
2
|
|
|
|
58
|
|
|
|
-
|
|
|
|
1,616
|
|
Debt securities
|
|
|
69,953
|
|
|
|
22,639
|
|
|
|
2,060
|
|
|
|
665
|
|
|
|
665
|
|
|
|
26,030
|
|
|
|
5,293
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
101,276
|
|
Loans
|
|
|
10,513
|
|
|
|
28,968
|
|
|
|
-
|
|
|
|
308
|
|
|
|
49
|
|
|
|
29,324
|
|
|
|
6
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
39,843
|
|
Other financial assets
|
|
|
10,555
|
|
|
|
321
|
|
|
|
115
|
|
|
|
7
|
|
|
|
-
|
|
|
|
443
|
|
|
|
-
|
|
|
|
77
|
|
|
|
22
|
|
|
|
-
|
|
|
|
11,097
|
|
Investments in
real estate
|
|
|
727
|
|
|
|
1,269
|
|
|
|
-
|
|
|
|
3
|
|
|
|
15
|
|
|
|
1,287
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,014
|
|
Investments general account
|
|
|
92,531
|
|
|
|
53,820
|
|
|
|
2,279
|
|
|
|
1,024
|
|
|
|
734
|
|
|
|
57,857
|
|
|
|
5,299
|
|
|
|
79
|
|
|
|
81
|
|
|
|
-
|
|
|
|
155,847
|
|
Shares
|
|
|
-
|
|
|
|
9,534
|
|
|
|
15,878
|
|
|
|
291
|
|
|
|
14
|
|
|
|
25,718
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
25,712
|
|
Debt securities
|
|
|
4,635
|
|
|
|
14,993
|
|
|
|
10,336
|
|
|
|
218
|
|
|
|
9
|
|
|
|
25,555
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30,190
|
|
Unconsolidated investment funds
|
|
|
104,726
|
|
|
|
-
|
|
|
|
37,631
|
|
|
|
908
|
|
|
|
67
|
|
|
|
38,606
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
143,332
|
|
Other financial assets
|
|
|
56
|
|
|
|
2,795
|
|
|
|
3,519
|
|
|
|
9
|
|
|
|
1
|
|
|
|
6,323
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,379
|
|
Investments in
real estate
|
|
|
-
|
|
|
|
-
|
|
|
|
681
|
|
|
|
-
|
|
|
|
-
|
|
|
|
681
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
681
|
|
Investments for account of
policyholders
|
|
|
109,417
|
|
|
|
27,321
|
|
|
|
68,044
|
|
|
|
1,427
|
|
|
|
90
|
|
|
|
96,883
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
206,294
|
|
Investments on balance sheet
|
|
|
201,947
|
|
|
|
81,142
|
|
|
|
70,324
|
|
|
|
2,451
|
|
|
|
824
|
|
|
|
154,740
|
|
|
|
5,299
|
|
|
|
79
|
|
|
|
81
|
|
|
|
(6
|
)
|
|
|
362,141
|
|
Off balance
sheet investments third parties
|
|
|
244,916
|
|
|
|
977
|
|
|
|
107,686
|
|
|
|
3,376
|
|
|
|
528
|
|
|
|
112,568
|
|
|
|
2,852
|
|
|
|
125,821
|
|
|
|
-
|
|
|
|
(1,063
|
)
|
|
|
485,094
|
|
Total revenue
generating investments
|
|
|
446,863
|
|
|
|
82,119
|
|
|
|
178,010
|
|
|
|
5,827
|
|
|
|
1,352
|
|
|
|
267,308
|
|
|
|
8,151
|
|
|
|
125,900
|
|
|
|
81
|
|
|
|
(1,069
|
)
|
|
|
847,234
|
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
77,728
|
|
|
|
22,089
|
|
|
|
2,176
|
|
|
|
697
|
|
|
|
670
|
|
|
|
25,632
|
|
|
|
5,271
|
|
|
|
75
|
|
|
|
22
|
|
|
|
-
|
|
|
|
108,727
|
|
Loans
|
|
|
10,513
|
|
|
|
28,968
|
|
|
|
-
|
|
|
|
308
|
|
|
|
49
|
|
|
|
29,324
|
|
|
|
6
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
39,843
|
|
Financial assets at fair value through profit or
loss
|
|
|
112,979
|
|
|
|
28,816
|
|
|
|
67,467
|
|
|
|
1,442
|
|
|
|
90
|
|
|
|
97,816
|
|
|
|
23
|
|
|
|
4
|
|
|
|
58
|
|
|
|
(6
|
)
|
|
|
210,875
|
|
Investments in
real estate
|
|
|
727
|
|
|
|
1,269
|
|
|
|
681
|
|
|
|
3
|
|
|
|
15
|
|
|
|
1,968
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,695
|
|
Total
investments on balance sheet
|
|
|
201,947
|
|
|
|
81,142
|
|
|
|
70,324
|
|
|
|
2,451
|
|
|
|
824
|
|
|
|
154,740
|
|
|
|
5,299
|
|
|
|
79
|
|
|
|
81
|
|
|
|
(6
|
)
|
|
|
362,141
|
|
Investments in joint ventures
|
|
|
7
|
|
|
|
895
|
|
|
|
-
|
|
|
|
-
|
|
|
|
499
|
|
|
|
1,394
|
|
|
|
140
|
|
|
|
108
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,648
|
|
Investments in associates
|
|
|
99
|
|
|
|
33
|
|
|
|
8
|
|
|
|
2
|
|
|
|
-
|
|
|
|
42
|
|
|
|
21
|
|
|
|
127
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
288
|
|
Other
assets
|
|
|
28,976
|
|
|
|
15,289
|
|
|
|
12,981
|
|
|
|
292
|
|
|
|
231
|
|
|
|
28,779
|
|
|
|
2,812
|
|
|
|
323
|
|
|
|
31,395
|
|
|
|
(30,921
|
)
|
|
|
61,378
|
|
Consolidated total assets
|
|
|
231,029
|
|
|
|
97,358
|
|
|
|
83,313
|
|
|
|
2,744
|
|
|
|
1,554
|
|
|
|
184,955
|
|
|
|
8,272
|
|
|
|
637
|
|
|
|
31,475
|
|
|
|
(30,927
|
)
|
|
|
425,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
Americas
|
|
|
The
Netherlands
|
|
|
United
Kingdom
|
|
|
Central &
Eastern
Europe
|
|
|
Spain &
Portugal
|
|
|
Europe
|
|
|
Asia
|
|
|
Asset
Management
|
|
|
Holdings
and other
activities
|
|
|
Eliminations
|
|
|
EUR millions
Total
EUR
|
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
793
|
|
|
|
334
|
|
|
|
84
|
|
|
|
35
|
|
|
|
4
|
|
|
|
457
|
|
|
|
-
|
|
|
|
2
|
|
|
|
62
|
|
|
|
-
|
|
|
|
1,314
|
|
Debt securities
|
|
|
70,766
|
|
|
|
23,741
|
|
|
|
2,036
|
|
|
|
633
|
|
|
|
683
|
|
|
|
27,093
|
|
|
|
5,310
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
103,169
|
|
Loans
|
|
|
10,820
|
|
|
|
28,627
|
|
|
|
-
|
|
|
|
303
|
|
|
|
45
|
|
|
|
28,975
|
|
|
|
18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
39,812
|
|
Other financial assets
|
|
|
9,924
|
|
|
|
358
|
|
|
|
115
|
|
|
|
10
|
|
|
|
-
|
|
|
|
483
|
|
|
|
-
|
|
|
|
88
|
|
|
|
23
|
|
|
|
-
|
|
|
|
10,519
|
|
Investments in
real estate
|
|
|
743
|
|
|
|
1,238
|
|
|
|
-
|
|
|
|
3
|
|
|
|
15
|
|
|
|
1,256
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,999
|
|
Investments general account
|
|
|
93,046
|
|
|
|
54,298
|
|
|
|
2,236
|
|
|
|
983
|
|
|
|
747
|
|
|
|
58,264
|
|
|
|
5,328
|
|
|
|
90
|
|
|
|
85
|
|
|
|
-
|
|
|
|
156,813
|
|
Shares
|
|
|
-
|
|
|
|
9,689
|
|
|
|
15,503
|
|
|
|
295
|
|
|
|
13
|
|
|
|
25,499
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
25,492
|
|
Debt securities
|
|
|
4,779
|
|
|
|
15,434
|
|
|
|
9,847
|
|
|
|
235
|
|
|
|
10
|
|
|
|
25,526
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30,305
|
|
Unconsolidated investment funds
|
|
|
102,534
|
|
|
|
-
|
|
|
|
36,600
|
|
|
|
879
|
|
|
|
64
|
|
|
|
37,543
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
140,077
|
|
Other financial assets
|
|
|
27
|
|
|
|
2,862
|
|
|
|
4,150
|
|
|
|
9
|
|
|
|
1
|
|
|
|
7,022
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,049
|
|
Investments in
real estate
|
|
|
-
|
|
|
|
-
|
|
|
|
686
|
|
|
|
-
|
|
|
|
-
|
|
|
|
686
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
686
|
|
Investments for account of
policyholders
|
|
|
107,341
|
|
|
|
27,985
|
|
|
|
66,786
|
|
|
|
1,418
|
|
|
|
88
|
|
|
|
96,276
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
203,610
|
|
Investments on balance sheet
|
|
|
200,387
|
|
|
|
82,283
|
|
|
|
69,021
|
|
|
|
2,401
|
|
|
|
834
|
|
|
|
154,540
|
|
|
|
5,328
|
|
|
|
90
|
|
|
|
85
|
|
|
|
(7
|
)
|
|
|
360,423
|
|
Off balance
sheet investments third parties
|
|
|
240,072
|
|
|
|
952
|
|
|
|
5,333
|
|
|
|
3,154
|
|
|
|
507
|
|
|
|
9,946
|
|
|
|
2,734
|
|
|
|
130,889
|
|
|
|
-
|
|
|
|
(864
|
)
|
|
|
382,776
|
|
Total revenue
generating investments
|
|
|
440,458
|
|
|
|
83,235
|
|
|
|
74,354
|
|
|
|
5,556
|
|
|
|
1,342
|
|
|
|
164,487
|
|
|
|
8,061
|
|
|
|
130,979
|
|
|
|
85
|
|
|
|
(871
|
)
|
|
|
743,200
|
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
77,918
|
|
|
|
23,044
|
|
|
|
2,152
|
|
|
|
660
|
|
|
|
687
|
|
|
|
26,544
|
|
|
|
5,289
|
|
|
|
87
|
|
|
|
23
|
|
|
|
-
|
|
|
|
109,860
|
|
Loans
|
|
|
10,820
|
|
|
|
28,627
|
|
|
|
-
|
|
|
|
303
|
|
|
|
45
|
|
|
|
28,975
|
|
|
|
18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
39,812
|
|
Financial assets at fair value through profit or
loss
|
|
|
110,906
|
|
|
|
29,374
|
|
|
|
66,183
|
|
|
|
1,436
|
|
|
|
88
|
|
|
|
97,080
|
|
|
|
21
|
|
|
|
4
|
|
|
|
62
|
|
|
|
(7
|
)
|
|
|
208,066
|
|
Investments in
real estate
|
|
|
743
|
|
|
|
1,238
|
|
|
|
686
|
|
|
|
3
|
|
|
|
15
|
|
|
|
1,942
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,685
|
|
Total
investments on balance sheet
|
|
|
200,387
|
|
|
|
82,283
|
|
|
|
69,021
|
|
|
|
2,401
|
|
|
|
834
|
|
|
|
154,540
|
|
|
|
5,328
|
|
|
|
90
|
|
|
|
85
|
|
|
|
(7
|
)
|
|
|
360,423
|
|
Investments in joint ventures
|
|
|
7
|
|
|
|
877
|
|
|
|
-
|
|
|
|
-
|
|
|
|
495
|
|
|
|
1,373
|
|
|
|
134
|
|
|
|
99
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,614
|
|
Investments in associates
|
|
|
95
|
|
|
|
21
|
|
|
|
8
|
|
|
|
2
|
|
|
|
-
|
|
|
|
30
|
|
|
|
21
|
|
|
|
125
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
270
|
|
Other
assets
|
|
|
31,003
|
|
|
|
15,260
|
|
|
|
12,718
|
|
|
|
293
|
|
|
|
170
|
|
|
|
28,426
|
|
|
|
3,122
|
|
|
|
293
|
|
|
|
31,107
|
|
|
|
(30,338
|
)
|
|
|
63,627
|
|
Consolidated total assets
|
|
|
231,493
|
|
|
|
98,441
|
|
|
|
81,747
|
|
|
|
2,696
|
|
|
|
1,500
|
|
|
|
184,370
|
|
|
|
8,604
|
|
|
|
607
|
|
|
|
31,192
|
|
|
|
(30,345
|
)
|
|
|
425,935
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
13
|
4. Premium income and premiums paid to reinsurers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
1Q 2017
|
|
|
|
1Q 2016
|
|
|
|
|
Premium income
|
|
|
|
|
|
|
|
|
Life insurance
|
|
|
4,832
|
|
|
|
4,899
|
|
Non-life
insurance
|
|
|
878
|
|
|
|
937
|
|
Total premium
income
|
|
|
5,710
|
|
|
|
5,836
|
|
Accident and health insurance
|
|
|
783
|
|
|
|
775
|
|
General
insurance
|
|
|
94
|
|
|
|
161
|
|
Non-life
Insurance premium income
|
|
|
878
|
|
|
|
937
|
|
|
|
|
Premiums paid to reinsurers 1
|
|
|
|
|
|
|
|
|
Life insurance
|
|
|
751
|
|
|
|
646
|
|
Non-life
insurance
|
|
|
61
|
|
|
|
67
|
|
Total premiums
paid to reinsurers
|
|
|
812
|
|
|
|
713
|
|
Accident and health insurance
|
|
|
58
|
|
|
|
63
|
|
General
insurance
|
|
|
3
|
|
|
|
4
|
|
Non-life
Insurance paid to reinsurers
|
|
|
61
|
|
|
|
67
|
|
1 Premiums paid to reinsurers are recorded within Benefits and expenses in the income statement - refer to note 8 - Benefits and expenses.
Premium income Life includes EUR 771 million for 1Q 2017 (1Q 2016: EUR 802 million) of premiums related to insurance policies upgraded to the retirement
platform in the UK.
5. Investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
1Q 2017
|
|
|
|
1Q 2016
|
|
|
|
|
Interest income
|
|
|
1,636
|
|
|
|
1,707
|
|
Dividend income
|
|
|
192
|
|
|
|
194
|
|
Rental
income
|
|
|
35
|
|
|
|
34
|
|
Total
investment income
|
|
|
1,863
|
|
|
|
1,935
|
|
|
|
|
Investment income related to general
account
|
|
|
1,464
|
|
|
|
1,493
|
|
Investment
income for account of policyholders
|
|
|
399
|
|
|
|
442
|
|
Total
|
|
|
1,863
|
|
|
|
1,935
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
14
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
|
6. Results from financial transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
1Q 2017
|
|
|
|
1Q 2016
|
|
|
|
|
Net fair value change of general account financial
investments at FVTPL other than derivatives
|
|
|
25
|
|
|
|
(72
|
)
|
Realized gains /(losses) on financial
investments
|
|
|
78
|
|
|
|
53
|
|
Gains /(losses) on investments in real
estate
|
|
|
24
|
|
|
|
18
|
|
Net fair value change of derivatives
|
|
|
(444
|
)
|
|
|
438
|
|
Net fair value change on for account of
policyholder financial assets at FVTPL
|
|
|
6,997
|
|
|
|
1,596
|
|
Net fair value change on investments in real
estate for account of policyholders
|
|
|
7
|
|
|
|
8
|
|
Net foreign currency gains /(losses)
|
|
|
2
|
|
|
|
17
|
|
Net fair value
change on borrowings and other financial liabilities
|
|
|
5
|
|
|
|
(9
|
)
|
Total
|
|
|
6,694
|
|
|
|
2,050
|
|
The increase of the net fair value change on for account of policyholder financial assets at FVTPL in 1Q 2017 compared to 1Q 2016 is
mainly driven by the equity markets and interest rate movements.
Net fair value change on for accounts of policyholder financial assets at FVTPL is offset by amounts
in the Claims and benefits line reported in note 8 - Benefits and expenses.
7. Other income
Other income of EUR 9 million reflects an extension of the existing reinsurance arrangement with Rothesay Life as amended and supplemented in 2017, covering the new
business written from January 1 to September 5, 2016.
8. Benefits and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
1Q 2017
|
|
|
|
1Q 2016
|
|
|
|
|
Claims and benefits
|
|
|
14,183
|
|
|
|
10,041
|
|
Employee expenses
|
|
|
590
|
|
|
|
596
|
|
Administration expenses
|
|
|
339
|
|
|
|
311
|
|
Deferred expenses
|
|
|
(262
|
)
|
|
|
(323
|
)
|
Amortization
charges
|
|
|
204
|
|
|
|
277
|
|
Total
|
|
|
15,055
|
|
|
|
10,901
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
15
|
The following table provides an analysis of claims and benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
1Q 2017
|
|
|
|
1Q 2016
|
|
|
|
|
Benefits and claims paid life
|
|
|
6,230
|
|
|
|
4,711
|
|
Benefits and claims paid non-life
|
|
|
504
|
|
|
|
538
|
|
Change in valuation of liabilities for insurance
contracts
|
|
|
5,479
|
|
|
|
3,000
|
|
Change in valuation of liabilities for investment
contracts
|
|
|
460
|
|
|
|
284
|
|
Other
|
|
|
(10
|
)
|
|
|
(5
|
)
|
|
|
|
Policyholder claims and benefits
|
|
|
12,664
|
|
|
|
8,527
|
|
Premium paid to reinsurers
|
|
|
812
|
|
|
|
713
|
|
Profit sharing and rebates
|
|
|
6
|
|
|
|
7
|
|
Commissions
|
|
|
701
|
|
|
|
795
|
|
Total
|
|
|
14,183
|
|
|
|
10,041
|
|
The lines change in valuation of liabilities for insurance contracts and change in valuation of liabilities for
investment contracts reflect changes in technical provisions resulting from net fair value changes on for account of policyholder financial assets at fair value through P&L included in Results from financial transactions (note 6) of EUR
6,997 million (1Q 2016: EUR 1,596 million). In addition, the line change in valuation of liabilities for insurance contracts includes a decrease of technical provisions for life insurance contracts of EUR 194 million (1Q 2016:
increase of EUR 1,863 million).
9. Impairment charges/(reversals)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
1Q 2017
|
|
|
|
1Q 2016
|
|
|
|
|
Impairment charges / (reversals)
comprise:
|
|
|
|
|
|
|
|
|
Impairment charges on financial assets, excluding
receivables
|
|
|
17
|
|
|
|
45
|
|
Impairment reversals on financial assets,
excluding receivables
|
|
|
(4
|
)
|
|
|
(6
|
)
|
Impairment
charges / (reversals) on non-financial assets and receivables
|
|
|
-
|
|
|
|
1
|
|
Total
|
|
|
13
|
|
|
|
40
|
|
|
|
|
Impairment charges on financial assets,
excluding receivables, from:
|
|
|
|
|
|
|
|
|
Shares
|
|
|
-
|
|
|
|
1
|
|
Debt securities and money market
instruments
|
|
|
6
|
|
|
|
28
|
|
Loans
|
|
|
8
|
|
|
|
3
|
|
Other
|
|
|
-
|
|
|
|
9
|
|
Investments in
associates
|
|
|
2
|
|
|
|
4
|
|
Total
|
|
|
17
|
|
|
|
45
|
|
|
|
|
Impairment reversals on financial assets,
excluding receivables, from:
|
|
|
|
|
|
|
|
|
Debt securities and money market
instruments
|
|
|
(1
|
)
|
|
|
(1
|
)
|
Loans
|
|
|
(3
|
)
|
|
|
(4
|
)
|
Other
|
|
|
(1
|
)
|
|
|
-
|
|
Total
|
|
|
(4
|
)
|
|
|
(6
|
)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
16
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
|
10. Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
Mar. 31, 2017
|
|
Dec. 31, 2016
|
|
|
|
Available-for-sale (AFS)
|
|
108,727
|
|
109,860
|
Loans
|
|
39,843
|
|
39,812
|
Financial assets
at fair value through profit or loss (FVTPL)
|
|
5,261
|
|
5,142
|
Financial assets, for general account,
excluding derivatives
|
|
153,832
|
|
154,814
|
Investments in
real estate
|
|
2,014
|
|
1,999
|
Total
investments for general account, excluding derivatives
|
|
155,847
|
|
156,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
assets, for general account, excluding derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR millions
|
|
|
AFS
|
|
|
|
FVTPL
|
|
|
|
Loans
|
|
|
|
Total
|
|
|
|
|
|
|
Shares
|
|
|
1,038
|
|
|
|
578
|
|
|
|
-
|
|
|
|
1,616
|
|
Debt securities
|
|
|
99,150
|
|
|
|
2,126
|
|
|
|
-
|
|
|
|
101,276
|
|
Money market and other short-term
investments
|
|
|
7,369
|
|
|
|
334
|
|
|
|
-
|
|
|
|
7,703
|
|
Mortgages loans
|
|
|
-
|
|
|
|
-
|
|
|
|
34,211
|
|
|
|
34,211
|
|
Private loans
|
|
|
-
|
|
|
|
-
|
|
|
|
3,230
|
|
|
|
3,230
|
|
Deposits with financial institutions
|
|
|
-
|
|
|
|
-
|
|
|
|
141
|
|
|
|
141
|
|
Policy loans
|
|
|
-
|
|
|
|
-
|
|
|
|
2,162
|
|
|
|
2,162
|
|
Other
|
|
|
1,171
|
|
|
|
2,224
|
|
|
|
100
|
|
|
|
3,494
|
|
March 31,
2017
|
|
|
108,727
|
|
|
|
5,261
|
|
|
|
39,843
|
|
|
|
153,832
|
|
|
|
|
|
|
|
|
|
AFS
|
|
|
|
FVTPL
|
|
|
|
Loans
|
|
|
|
Total
|
|
|
|
|
|
|
Shares
|
|
|
824
|
|
|
|
490
|
|
|
|
-
|
|
|
|
1,314
|
|
Debt securities
|
|
|
101,054
|
|
|
|
2,115
|
|
|
|
-
|
|
|
|
103,169
|
|
Money market and other short-term
investments
|
|
|
6,776
|
|
|
|
317
|
|
|
|
-
|
|
|
|
7,093
|
|
Mortgages loans
|
|
|
-
|
|
|
|
-
|
|
|
|
34,206
|
|
|
|
34,206
|
|
Private loans
|
|
|
-
|
|
|
|
-
|
|
|
|
3,166
|
|
|
|
3,166
|
|
Deposits with financial institutions
|
|
|
-
|
|
|
|
-
|
|
|
|
129
|
|
|
|
129
|
|
Policy loans
|
|
|
-
|
|
|
|
-
|
|
|
|
2,207
|
|
|
|
2,207
|
|
Other
|
|
|
1,206
|
|
|
|
2,219
|
|
|
|
104
|
|
|
|
3,529
|
|
December 31, 2016
|
|
|
109,860
|
|
|
|
5,142
|
|
|
|
39,812
|
|
|
|
154,814
|
|
11. Investments for account of policyholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
|
Mar. 31, 2017
|
|
Dec. 31, 2016
|
Shares
|
|
|
|
25,712
|
|
25,492
|
Debt securities
|
|
|
|
30,190
|
|
30,305
|
Money market and short-term investments
|
|
|
|
1,191
|
|
1,231
|
Deposits with financial institutions
|
|
|
|
2,353
|
|
2,951
|
Unconsolidated investment funds
|
|
|
|
143,332
|
|
140,077
|
Other
|
|
|
|
2,835
|
|
2,868
|
Total investments for account of policyholders
at fair value through profit or loss,
excluding derivatives
|
|
|
|
205,613
|
|
202,924
|
Investment in
real estate
|
|
|
|
681
|
|
686
|
Total
investments for account of policyholders
|
|
|
|
206,294
|
|
203,610
|
12. Derivatives
The movements in fair value of derivatives on both the asset and liability side of the condensed consolidated statement of financial position mainly result from changes
in interest rates and other market movements during the period, as well as purchases and disposals.
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
17
|
13. Fair value
The following tables provide an analysis of financial instruments recorded at fair value on a recurring basis by level of the fair value hierarchy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hierarchy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR millions
|
|
Level I
|
|
|
Level II
|
|
|
Level III
|
|
|
Total
|
|
As at March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets carried at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
149
|
|
|
|
321
|
|
|
|
567
|
|
|
|
1,038
|
|
Debt securities
|
|
|
28,238
|
|
|
|
69,035
|
|
|
|
1,877
|
|
|
|
99,150
|
|
Money markets and other short-term
instruments
|
|
|
-
|
|
|
|
7,369
|
|
|
|
-
|
|
|
|
7,369
|
|
Other investments
at fair value
|
|
|
-
|
|
|
|
414
|
|
|
|
757
|
|
|
|
1,171
|
|
Total
Available-for-sale investments
|
|
|
28,388
|
|
|
|
77,139
|
|
|
|
3,200
|
|
|
|
108,727
|
|
|
|
|
|
|
Fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
295
|
|
|
|
164
|
|
|
|
119
|
|
|
|
578
|
|
Debt securities
|
|
|
13
|
|
|
|
2,107
|
|
|
|
5
|
|
|
|
2,126
|
|
Money markets and other short-term
instruments
|
|
|
-
|
|
|
|
334
|
|
|
|
-
|
|
|
|
334
|
|
Other investments at fair value
|
|
|
1
|
|
|
|
1,003
|
|
|
|
1,219
|
|
|
|
2,224
|
|
Investments for account of policyholders
1
|
|
|
127,837
|
|
|
|
76,048
|
|
|
|
1,728
|
|
|
|
205,613
|
|
Derivatives
|
|
|
23
|
|
|
|
7,526
|
|
|
|
127
|
|
|
|
7,676
|
|
Total Fair
value through profit or loss
|
|
|
128,169
|
|
|
|
87,182
|
|
|
|
3,199
|
|
|
|
218,551
|
|
Total
financial assets at fair value
|
|
|
156,557
|
|
|
|
164,322
|
|
|
|
6,399
|
|
|
|
327,278
|
|
|
|
|
|
|
Financial liabilities carried at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment contracts for account of policyholders
2
|
|
|
-
|
|
|
|
42,884
|
|
|
|
195
|
|
|
|
43,079
|
|
Borrowings
3
|
|
|
-
|
|
|
|
598
|
|
|
|
-
|
|
|
|
598
|
|
Derivatives
|
|
|
23
|
|
|
|
6,172
|
|
|
|
1,792
|
|
|
|
7,987
|
|
Total
financial liabilities at fair value
|
|
|
23
|
|
|
|
49,654
|
|
|
|
1,987
|
|
|
|
51,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hierarchy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR millions
|
|
Level I
|
|
|
Level II
|
|
|
Level III
|
|
|
Total
|
|
As at December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets carried at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
119
|
|
|
|
312
|
|
|
|
393
|
|
|
|
824
|
|
Debt securities
|
|
|
29,386
|
|
|
|
69,702
|
|
|
|
1,966
|
|
|
|
101,054
|
|
Money markets and other short-term
instruments
|
|
|
-
|
|
|
|
6,776
|
|
|
|
-
|
|
|
|
6,776
|
|
Other investments at
fair value
|
|
|
-
|
|
|
|
453
|
|
|
|
754
|
|
|
|
1,206
|
|
Total
Available-for-sale investments
|
|
|
29,504
|
|
|
|
77,243
|
|
|
|
3,112
|
|
|
|
109,860
|
|
|
|
|
|
|
Fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
288
|
|
|
|
152
|
|
|
|
50
|
|
|
|
490
|
|
Debt securities
|
|
|
27
|
|
|
|
2,082
|
|
|
|
6
|
|
|
|
2,115
|
|
Money markets and other short-term
instruments
|
|
|
-
|
|
|
|
317
|
|
|
|
-
|
|
|
|
317
|
|
Other investments at fair value
|
|
|
1
|
|
|
|
961
|
|
|
|
1,257
|
|
|
|
2,219
|
|
Investments for account of policyholders
1
|
|
|
125,997
|
|
|
|
75,202
|
|
|
|
1,726
|
|
|
|
202,924
|
|
Derivatives
|
|
|
41
|
|
|
|
8,169
|
|
|
|
108
|
|
|
|
8,318
|
|
Total Fair value
through profit or loss
|
|
|
126,355
|
|
|
|
86,883
|
|
|
|
3,146
|
|
|
|
216,384
|
|
Total financial
assets at fair value
|
|
|
155,860
|
|
|
|
164,126
|
|
|
|
6,259
|
|
|
|
326,244
|
|
|
|
|
|
|
Financial liabilities carried at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment contracts for account of policyholders
2
|
|
|
-
|
|
|
|
42,627
|
|
|
|
176
|
|
|
|
42,803
|
|
Borrowings
3
|
|
|
-
|
|
|
|
610
|
|
|
|
-
|
|
|
|
610
|
|
Derivatives
|
|
|
64
|
|
|
|
6,347
|
|
|
|
2,467
|
|
|
|
8,878
|
|
Total financial
liabilities at fair value
|
|
|
64
|
|
|
|
49,584
|
|
|
|
2,643
|
|
|
|
52,290
|
|
1
The investments for account of policyholders included in the table above
represents only those investments carried at fair value through profit or loss.
2
The investment contracts for
account of policyholders included in the table above represents only those investment contracts carried at fair value.
3
Total borrowings on the statement of financial position contain borrowings carried at amortized cost that are not
included in the above schedule.
|
|
|
Unaudited
|
|
|
|
|
|
|
|
18
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
|
Significant transfers between Level I, Level II and Level III
Aegons policy is to record transfers of assets and liabilities between Level I, Level II and Level III at their fair values as of the beginning of each reporting
period.
The table below shows transfers between Level I and II for financial assets and financial liabilities recorded at fair value on a recurring basis during the
three month period ended March 31, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value transfers
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR millions
|
|
1Q 2017
|
|
|
Full Year 2016
|
|
|
|
Transfers
Level I to
Level II
|
|
|
Transfers
Level II to
Level I
|
|
|
Transfers
Level I to
Level II
|
|
|
Transfers
Level II to
Level I
|
|
Financial assets carried at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
securities
|
|
|
-
|
|
|
|
-
|
|
|
|
5
|
|
|
|
69
|
|
Total
|
|
|
-
|
|
|
|
-
|
|
|
|
5
|
|
|
|
69
|
|
|
|
|
|
|
Fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments for
account of policyholders
|
|
|
-
|
|
|
|
10
|
|
|
|
3
|
|
|
|
(1
|
)
|
Total
|
|
|
-
|
|
|
|
10
|
|
|
|
3
|
|
|
|
(1
|
)
|
Total financial
assets at fair value
|
|
|
-
|
|
|
|
10
|
|
|
|
8
|
|
|
|
68
|
|
Transfers are identified based on transaction volume and frequency, which are indicative of an active market.
Movements in Level III financial instruments measured at fair value
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Roll forward of Level III financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR millions
|
|
January 1,
2017
|
|
|
Total gains /
losses in
income
statement
1
|
|
|
Total gains /
losses in OCI
2
|
|
|
Purchases
|
|
|
Sales
|
|
|
Settlements
|
|
|
Net
exchange
differences
|
|
|
Reclassification
|
|
|
Transfers
from Level I
and Level II
|
|
|
Transfers
to Level I
and Level II
|
|
|
March 31,
2017
|
|
|
Total unrealized
gains
and
losses for the
period recorded
in the P&L for
instruments
held at
March 31,
2017 ³
|
|
Financial assets carried at fair value
available-for-sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
393
|
|
|
|
16
|
|
|
|
(16
|
)
|
|
|
206
|
|
|
|
(14
|
)
|
|
|
(15
|
)
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
567
|
|
|
|
-
|
|
Debt securities
|
|
|
1,966
|
|
|
|
4
|
|
|
|
16
|
|
|
|
65
|
|
|
|
(1
|
)
|
|
|
(75
|
)
|
|
|
(23
|
)
|
|
|
-
|
|
|
|
6
|
|
|
|
(80
|
)
|
|
|
1,877
|
|
|
|
-
|
|
Other investments
at fair value
|
|
|
754
|
|
|
|
(35
|
)
|
|
|
3
|
|
|
|
51
|
|
|
|
(7
|
)
|
|
|
(1
|
)
|
|
|
(10
|
)
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
757
|
|
|
|
-
|
|
|
|
|
3,112
|
|
|
|
(15
|
)
|
|
|
4
|
|
|
|
323
|
|
|
|
(22
|
)
|
|
|
(91
|
)
|
|
|
(38
|
)
|
|
|
-
|
|
|
|
7
|
|
|
|
(80
|
)
|
|
|
3,200
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
50
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
69
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
119
|
|
|
|
(1
|
)
|
Debt securities
|
|
|
6
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5
|
|
|
|
-
|
|
Other investments at fair value
|
|
|
1,257
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
58
|
|
|
|
(56
|
)
|
|
|
-
|
|
|
|
(17
|
)
|
|
|
-
|
|
|
|
73
|
|
|
|
(88
|
)
|
|
|
1,219
|
|
|
|
(8
|
)
|
Investments for account of policyholders
|
|
|
1,726
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
|
160
|
|
|
|
(102
|
)
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(38
|
)
|
|
|
1,728
|
|
|
|
9
|
|
Derivatives
|
|
|
108
|
|
|
|
66
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(21
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(26
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
127
|
|
|
|
66
|
|
|
|
|
3,146
|
|
|
|
44
|
|
|
|
-
|
|
|
|
286
|
|
|
|
(179
|
)
|
|
|
-
|
|
|
|
(20
|
)
|
|
|
(26
|
)
|
|
|
73
|
|
|
|
(126
|
)
|
|
|
3,199
|
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities carried at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment contracts for account of
policyholders
|
|
|
176
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
30
|
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
195
|
|
|
|
-
|
|
Derivatives
|
|
|
2,467
|
|
|
|
(1,017
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
351
|
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,792
|
|
|
|
(845
|
)
|
|
|
|
2,643
|
|
|
|
(1,023
|
)
|
|
|
-
|
|
|
|
30
|
|
|
|
348
|
|
|
|
-
|
|
|
|
(11
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,987
|
|
|
|
(846
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR millions
|
|
January 1,
2016
|
|
|
Total gains /
losses in
income
statement
1
|
|
|
Total gains /
losses in OCI
2
|
|
|
Purchases
|
|
|
Sales
|
|
|
Settlements
|
|
|
Net
exchange
differences
|
|
|
Reclassification
|
|
|
Transfers
from Level I
and Level II
|
|
|
Transfers
to Level I
and Level II
|
|
|
December 31,
2016
|
|
|
Total unrealized
gains and
losses for the
period recorded
in the P&L for
instruments
held
at
December 31,
2016 ³
|
|
Financial assets carried at fair value
available-for-sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
293
|
|
|
|
27
|
|
|
|
(7
|
)
|
|
|
161
|
|
|
|
(92
|
)
|
|
|
(1
|
)
|
|
|
11
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
393
|
|
|
|
-
|
|
Debt securities
|
|
|
4,144
|
|
|
|
1
|
|
|
|
92
|
|
|
|
443
|
|
|
|
(262
|
)
|
|
|
(287
|
)
|
|
|
39
|
|
|
|
-
|
|
|
|
651
|
|
|
|
(2,854
|
)
|
|
|
1,966
|
|
|
|
-
|
|
Other investments
at fair value
|
|
|
928
|
|
|
|
(177
|
)
|
|
|
20
|
|
|
|
240
|
|
|
|
(133
|
)
|
|
|
(141
|
)
|
|
|
18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
754
|
|
|
|
-
|
|
|
|
|
5,365
|
|
|
|
(150
|
)
|
|
|
105
|
|
|
|
845
|
|
|
|
(487
|
)
|
|
|
(429
|
)
|
|
|
68
|
|
|
|
-
|
|
|
|
651
|
|
|
|
(2,856
|
)
|
|
|
3,112
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
48
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
50
|
|
|
|
3
|
|
Debt securities
|
|
|
6
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
Other investments at fair value
|
|
|
1,265
|
|
|
|
(44
|
)
|
|
|
-
|
|
|
|
178
|
|
|
|
(277
|
)
|
|
|
-
|
|
|
|
35
|
|
|
|
-
|
|
|
|
419
|
|
|
|
(321
|
)
|
|
|
1,257
|
|
|
|
(42
|
)
|
Investments for account of policyholders
|
|
|
1,745
|
|
|
|
22
|
|
|
|
-
|
|
|
|
469
|
|
|
|
(395
|
)
|
|
|
-
|
|
|
|
(35
|
)
|
|
|
-
|
|
|
|
8
|
|
|
|
(88
|
)
|
|
|
1,726
|
|
|
|
23
|
|
Derivatives
|
|
|
222
|
|
|
|
(285
|
)
|
|
|
-
|
|
|
|
75
|
|
|
|
108
|
|
|
|
-
|
|
|
|
(12
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
108
|
|
|
|
(287
|
)
|
|
|
|
3,239
|
|
|
|
(305
|
)
|
|
|
-
|
|
|
|
770
|
|
|
|
(564
|
)
|
|
|
-
|
|
|
|
(11
|
)
|
|
|
-
|
|
|
|
427
|
|
|
|
(409
|
)
|
|
|
3,146
|
|
|
|
(303
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities carried at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment contracts for account of
policyholders
|
|
|
156
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
|
45
|
|
|
|
(12
|
)
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
176
|
|
|
|
1
|
|
Derivatives
|
|
|
2,104
|
|
|
|
542
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(207
|
)
|
|
|
-
|
|
|
|
28
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,467
|
|
|
|
562
|
|
|
|
|
2,260
|
|
|
|
528
|
|
|
|
-
|
|
|
|
45
|
|
|
|
(219
|
)
|
|
|
-
|
|
|
|
31
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
2,643
|
|
|
|
563
|
|
1
Includes impairments and movements related to fair value hedges. Gains and losses
are recorded in the line item results from financial transactions of the income statement.
2
Total gains and
losses are recorded in line items Gains/ (losses) on revaluation of available-for-sale investments and (Gains)/ losses transferred to the income statement on disposal and impairment of available-for-sale investment of the statement of other
comprehensive income.
3
Total gains / (losses) for the period during which the financial instrument was in Level
III.
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
19
|
During the first three months of 2017, Aegon transferred certain financial instruments from Level II to Level III of the
fair value hierarchy. The reason for the change in level was that the market liquidity for these securities decreased, which led to a change in market observability of prices. Prior to transfer, the fair value for the Level II securities was
determined using observable market transactions or corroborated broker quotes respectively for the same or similar instruments. The amount of assets and liabilities transferred to Level III was EUR 80 million (full year 2016: EUR 1,077
million). Since the transfer, all such assets have been valued using valuation models incorporating significant non market-observable inputs or uncorroborated broker quotes.
Similarly, during the first three months of 2017, Aegon transferred EUR 206 million (full year 2016: EUR 3,266 million) of financial instruments from Level III to
other levels of the fair value hierarchy. The change in level was mainly the result of a return of activity in the market for these securities and that for these securities the fair value could be determined using observable market transactions or
corroborated broker quotes for the same or similar instruments.
The following table presents information about the significant unobservable inputs used for
recurring fair value measurements for certain Level III financial instruments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overview of significant unobservable inputs
|
|
|
|
|
|
|
EUR millions
|
|
Carrying
amount March 31,
2017
|
|
|
Valuation technique
1
|
|
Significant unobservable
input
2
|
|
|
Range (weighted average)
|
|
Financial assets carried at fair value
available-for-sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
257
|
|
|
Net asset value
4
|
|
|
n.a.
|
|
|
|
n.a.
|
|
|
|
|
310
|
|
|
Other
|
|
|
n.a.
|
|
|
|
n.a.
|
|
|
|
|
567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,334
|
|
|
Broker quote
|
|
|
n.a.
|
|
|
|
n.a.
|
|
|
|
|
231
|
|
|
Discounted cash flow
|
|
|
Credit spread
|
|
|
|
1.28% -3.48% (2.86%)
|
|
|
|
|
312
|
|
|
Other
|
|
|
n.a.
|
|
|
|
n.a.
|
|
|
|
|
1,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investments at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax credit investments
|
|
|
678
|
|
|
Discounted cash flow
|
|
|
Discount rate
|
|
|
|
5.7%
|
|
Investment funds
|
|
|
45
|
|
|
Net asset value
4
|
|
|
n.a.
|
|
|
|
n.a.
|
|
Other
|
|
|
33
|
|
|
Other
|
|
|
n.a.
|
|
|
|
n.a.
|
|
March 31,
2017
|
|
|
757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value through profit or
loss
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
119
|
|
|
Other
|
|
|
n.a.
|
|
|
|
n.a.
|
|
Debt
securities
|
|
|
5
|
|
|
Other
|
|
|
n.a.
|
|
|
|
n.a.
|
|
|
|
|
124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investments at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment funds
|
|
|
1,214
|
|
|
Net asset value
4
|
|
|
n.a.
|
|
|
|
n.a.
|
|
Other
|
|
|
5
|
|
|
Other
|
|
|
n.a.
|
|
|
|
n.a.
|
|
|
|
|
1,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Longevity swap
|
|
|
5
|
|
|
Discounted cash flow
|
|
|
Mortality
|
|
|
|
n.a.
|
|
Longevity swap
|
|
|
46
|
|
|
Discounted cash flow
|
|
|
Risk free rate
|
|
|
|
0.40% -2.16% (2.05%)
|
|
Other
|
|
|
74
|
|
|
Other
|
|
|
n.a.
|
|
|
|
n.a.
|
|
March 31,
2017
|
|
|
125
|
|
|
|
|
|
|
|
|
|
|
|
Total
financial assets at fair value
3
|
|
|
4,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities carried at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Embedded derivatives in insurance
contracts
|
|
|
1,766
|
|
|
Discounted cash flow
|
|
|
Own Credit
spread
|
|
|
|
0.35% - 0.45% (0.37%)
|
|
Other
|
|
|
25
|
|
|
Other
|
|
|
n.a.
|
|
|
|
n.a.
|
|
Total
financial liabilities at fair value
|
|
|
1,792
|
|
|
|
|
|
|
|
|
|
|
|
1
Other in the table above (column Valuation technique) includes investments for
which the fair value is uncorroborated and no broker quote is received.
2
Not applicable (n.a.) has been
included when no significant unobservable assumption has been identified.
3
Investments for account of
policyholders are excluded from the table above and from the disclosure regarding reasonably possible alternative assumptions. Policyholder assets, and their returns, belong to policyholders and do not impact Aegons net income or equity. The
effect on total assets is offset by the effect on total liabilities. Derivatives exclude derivatives for account of policyholders amounting to EUR 2 million.
4
Net asset value is considered the best approximation to the fair value of these financial instruments.
|
|
|
Unaudited
|
|
|
|
|
|
|
|
20
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
|
The description of Aegons methods of determining fair value is included in the consolidated financial statements
for 2016. For reference purposes, the valuation techniques included in the table above are described in more detail on the following pages.
Shares
When available, Aegon uses quoted market prices in active markets to determine the fair value of its investments in shares. Fair values for unquoted shares are estimated
using observations of the price/earnings or price/cash flow ratios of quoted companies considered comparable to the companies being valued. Valuations are adjusted to account for company-specific issues and the lack of liquidity inherent in an
unquoted investment. Adjustments for illiquidity are generally based on available market evidence. In addition, a variety of other factors are reviewed by management, including, but not limited to, current operating performance, changes in market
outlook and the third-party financing environment.
Available-for-sale shares include shares in a Federal Home Loan Bank (FHLB) for an amount of EUR 233 million
(December 31, 2016: EUR 237 million) that are measured at par, which are reported as part of Other in the column Valuation technique. A FHLB has implicit financial support from the United States government. The redemption value of the shares is
fixed at par and they can only be redeemed by the FHLB.
Debt securities
Aegons portfolio of debt securities can be subdivided in Residential mortgage-backed securities (RMBS), Commercial mortgage-backed securities (CMBS), Asset-backed
securities (ABS), Corporate bonds and Governement debt. Below relevant details in the valuation methodology for these specific types of debt securities are described.
Valuations of RMBS, CMBS and ABS are monitored and reviewed on a monthly basis. Valuations per asset type are based on a pricing hierarchy which uses a waterfall
approach that starts with market prices from indices and follows with third-party pricing services or brokers. The pricing hierarchy is dependent on the possibilities of corroboration of the market prices. If no market prices are available, Aegon
uses internal models to determine fair value. Significant inputs included in the internal models are generally determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles.
Market standard models may be used to model the specific collateral composition and cash flow structure of each transaction.
Valuations of corporate bonds are
monitored and reviewed on a monthly basis. The pricing hierarchy is dependent on the possibility of corroboration of market prices when available. If no market prices are available, valuations are determined by a discounted cash flow methodology
using an internally calculated yield. The yield is comprised of a credit spread over a given benchmark. In all cases, the benchmark is an observable input. The credit spread contains both observable and unobservable inputs. Aegon starts by taking an
observable credit spread from a similar bond of the given issuer, and then adjusts this spread based on unobservable inputs. These unobservable inputs may include subordination, liquidity and maturity differences. The weighted average credit spread
used in valuation of corporate bonds has decreased to 2.9% (December 31, 2016: 3.1%).
If available, Aegon uses quoted market prices in active markets to determine
the fair value of its Governement debt investments. If Aegon cannot make use of quoted market prices, market prices from indices or quotes from third-party pricing services or brokers are used.
Tax credit investments
The fair value of tax credit investments is determined
by using a discounted cash flow valuation technique. This valuation technique takes into consideration projections of future capital contributions and distributions, as well as future tax credits and the tax benefits of future operating losses. The
present value of these cash flows is calculated by applying a discount rate. In general, the discount rate is determined based on the cash outflows for the investments and the cash inflows from the tax credits/tax benefits (and the timing of those
cash flows). These inputs are unobservable in the market place. The discount rate used in valuation of tax credit investments has increased to 5.7% (December 31, 2016: 5.6%).
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
21
|
Investment funds
Investment
funds include real estate funds, private equity funds and hedge funds. The fair values of investments held in non-quoted investment funds are determined by management after taking into consideration information provided by the fund managers. Aegon
reviews the valuations each month and performs analytical procedures and trending analyses to ensure the fair values are appropriate.
Derivatives
Where quoted market prices are not available, other valuation techniques, such as option pricing or stochastic modeling, are applied. The valuation techniques incorporate
all factors that a typical market participant would consider and are based on observable market data when available. Models are validated before they are used and calibrated to ensure that outputs reflect actual experience and comparable market
prices.
Fair values for exchange-traded derivatives, principally futures and certain options, are based on quoted market prices in active markets. Fair values for
over-the-counter (OTC) derivatives represent amounts estimated to be received from or paid to a third party in settlement of these instruments. These derivatives are valued using pricing models based on the net present value of estimated future cash
flows, directly observed prices from exchange-traded derivatives, other OTC trades, or external pricing services. Most valuations are derived from swap and volatility matrices, which are constructed for applicable indices and currencies using
current market data from many industry standard sources. Option pricing is based on industry standard valuation models and current market levels, where applicable. The pricing of complex or illiquid instruments is based on internal models or an
independent third party. For long-dated illiquid contracts, extrapolation methods are applied to observed market data in order to estimate inputs and assumptions that are not directly observable. To value OTC derivatives, management uses observed
market information, other trades in the market and dealer prices.
Some OTC derivatives are so-called longevity derivatives. The payout of longevity derivatives is
linked to publicly available mortality tables. The derivatives are measured using the present value of the best estimate of expected payouts of the derivative plus a risk margin. The best estimate of expected payouts is determined using best
estimate of mortality developments. Aegon determined the risk margin by stressing the best estimate mortality developments to quantify the risk and applying a cost-of-capital methodology. The most significant unobservable input for these derivatives
is the (projected) mortality development.
Aegon normally mitigates counterparty credit risk in derivative contracts by entering into collateral agreements where
practical and in ISDA (International Swaps and Derivatives Association) master netting agreements for each of the Groups legal entities to facilitate Aegons right to offset credit risk exposure. Changes in the fair value of derivatives
attributable to changes in counterparty credit risk were not significant.
Embedded derivatives in insurance contracts including guarantees
All bifurcated guarantees for minimum benefits in insurance and investment contracts are carried at fair value. These guarantees include guaranteed minimum withdrawal
benefits (GMWB) in the United States, United Kingdom and Japan which are offered on some variable annuity products and are also assumed from a ceding company; minimum investment return guarantees on insurance products offered in the Netherlands,
including group pension and traditional products; variable annuities sold in Europe and Japan.
Since the price of these guarantees is not quoted in any market, the
fair values of these guarantees are based on discounted cash flows calculated as the present value of future expected payments to policyholders less the present value of assessed rider fees attributable to the guarantees. Given the complexity and
long-term nature of these guarantees which are unlike instruments available in financial markets, their fair values are determined by using stochastic models under a variety of market return scenarios. A variety of factors are considered including
credit spread, expected market rates of return, equity and interest rate volatility, correlations of market returns, discount rates and actuarial assumptions. The most significant unobservable factor is discount rate. The credit spread used in the
valuations of embedded derivatives in insurance contracts remained stable at 0.4% (December 31, 2016: 0.4%).
|
|
|
Unaudited
|
|
|
|
|
|
|
|
22
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
|
The expected returns are based on risk-free rates. Aegon added a premium to reflect the credit spread as required. The
credit spread is set by using the credit default swap (CDS) spreads of a reference portfolio of life insurance companies (including Aegon), adjusted to reflect the subordination of senior debt holders at the holding company level to the position of
policyholders at the operating company level (who have priority in payments to other creditors). Aegons assumptions are set by region to reflect differences in the valuation of the guarantee embedded in the insurance contracts.
Since many of the assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits
has been reflected within Level III of the fair value hierarchy.
Effect of reasonably possible alternative assumptions
The effect of changes in unobservable inputs on fair value measurement were not significantly different than those that were applied to the consolidated financial
statements as at and for the year ended December 31, 2016.
Fair value information about financial instruments not measured at fair value
The following table presents the carrying values and estimated fair values of financial assets and liabilities, excluding financial instruments which are
carried at fair value on a recurring basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
value information about financial instruments not measured at fair value
|
|
EUR millions
|
|
Carrying
amount March 31,
2017
|
|
|
Total
estimated fair
value March 31,
2017
|
|
|
Carrying
amount December 31,
2016
|
|
|
Total estimated fair
value December 31,
2016
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans - held at amortized cost
|
|
|
34,211
|
|
|
|
38,559
|
|
|
|
34,206
|
|
|
|
38,499
|
|
Private loans - held at amortized cost
|
|
|
3,230
|
|
|
|
3,592
|
|
|
|
3,166
|
|
|
|
3,569
|
|
Other loans -
held at amortized cost
|
|
|
2,402
|
|
|
|
2,402
|
|
|
|
2,441
|
|
|
|
2,441
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subordinated borrowings - held at amortized
cost
|
|
|
768
|
|
|
|
866
|
|
|
|
767
|
|
|
|
844
|
|
Trust pass-through securities - held at amortized
cost
|
|
|
152
|
|
|
|
144
|
|
|
|
156
|
|
|
|
141
|
|
Borrowings - held at amortized cost
|
|
|
14,423
|
|
|
|
14,821
|
|
|
|
12,543
|
|
|
|
12,935
|
|
Investment
contracts - held at amortized cost
|
|
|
17,494
|
|
|
|
17,874
|
|
|
|
19,217
|
|
|
|
19,748
|
|
Financial instruments for which carrying value approximates fair value
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.
14. Deferred expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
Mar. 31, 2017
|
|
|
|
Dec. 31, 2016
|
|
|
|
|
Deferred policy acquisition costs (DPAC) for
insurance contracts and investment contracts with discretionary participation features
|
|
|
10,901
|
|
|
|
10,882
|
|
Deferred cost of reinsurance
|
|
|
54
|
|
|
|
60
|
|
Deferred
transaction costs for investment management services
|
|
|
481
|
|
|
|
481
|
|
Total deferred
expenses
|
|
|
11,435
|
|
|
|
11,423
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
23
|
15. Intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
Mar. 31, 2017
|
|
|
|
Dec. 31, 2016
|
|
|
|
|
Goodwill
|
|
|
347
|
|
|
|
294
|
|
VOBA
|
|
|
1,338
|
|
|
|
1,399
|
|
Future servicing rights
|
|
|
62
|
|
|
|
64
|
|
Software
|
|
|
53
|
|
|
|
50
|
|
Other
|
|
|
41
|
|
|
|
12
|
|
Total intangible
assets
|
|
|
1,841
|
|
|
|
1,820
|
|
Intangible assets, except for goodwill, are predominantly impacted by periodic amortization of balances and changes in foreign exchange
rates. The acquisition of Cofunds Ltd. in January 2017 resulted in the addition of customer intangibles (included in the line Other) amounting to EUR 29 million and goodwill amounting to EUR 56 million.
16. Share capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
Mar. 31, 2017
|
|
|
|
Dec. 31, 2016
|
|
|
|
|
Share capital - par value
|
|
|
319
|
|
|
|
319
|
|
Share
premium
|
|
|
7,873
|
|
|
|
7,873
|
|
Total share
capital
|
|
|
8,193
|
|
|
|
8,193
|
|
|
|
|
Share capital - par value
|
|
|
|
|
|
|
|
|
Balance at January 1
|
|
|
319
|
|
|
|
328
|
|
Dividend
|
|
|
-
|
|
|
|
1
|
|
Shares
withdrawn
|
|
|
-
|
|
|
|
(10
|
)
|
Balance
|
|
|
319
|
|
|
|
319
|
|
|
|
|
Share premium
|
|
|
|
|
|
|
|
|
Balance at January 1
|
|
|
7,873
|
|
|
|
8,059
|
|
Share
dividend
|
|
|
-
|
|
|
|
(186
|
)
|
Balance
|
|
|
7,873
|
|
|
|
7,873
|
|
Basic and diluted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
millions
|
|
|
1Q 2017
|
|
|
|
1Q 2016
|
|
|
|
|
Earnings per share
(EUR per share)
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
|
0.17
|
|
|
|
0.05
|
|
Basic earnings per common share B
|
|
|
-
|
|
|
|
-
|
|
Diluted earnings per common share
|
|
|
0.17
|
|
|
|
0.05
|
|
Diluted earnings
per common share B
|
|
|
-
|
|
|
|
-
|
|
Earnings per share calculation
|
|
|
|
|
|
|
|
|
Net income / (loss) attributable to owners of
Aegon N.V.
|
|
|
378
|
|
|
|
143
|
|
Coupons on other
equity instruments
|
|
|
(35
|
)
|
|
|
(35
|
)
|
Earnings attributable to common shares and common
shares B
|
|
|
343
|
|
|
|
109
|
|
|
|
|
Earnings attributable to common
shareholders
|
|
|
341
|
|
|
|
108
|
|
Earnings attributable to common shareholders
B
|
|
|
2
|
|
|
|
1
|
|
|
|
|
Weighted average number of common shares
outstanding (in millions)
|
|
|
2,026
|
|
|
|
2,084
|
|
Weighted
average number of common shares B outstanding (in millions)
|
|
|
568
|
|
|
|
585
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
24
|
|
Condensed Consolidated Interim Financial Statements 1Q 2017
|
|
|
Final dividend 2016
It will
be proposed to the Annual General Meeting of Shareholders on May 19, 2017, absent unforeseen circumstances, to pay a final dividend for the year 2016 of EUR 0.13 per common share. After taking into account the interim dividend 2016 of EUR
0.13 per common share, this will result in a total 2016 dividend of EUR 0.26 per common share. Proposed final dividend for the year and proposed total 2016 dividend per common share B amount to 1/40th of the dividend paid on common shares.
17. Borrowings
|
|
|
|
|
|
|
|
|
|
|
EUR millions
|
|
Mar. 31, 2017
|
|
|
Dec. 31, 2016
|
|
|
|
|
Capital funding
|
|
|
2,373
|
|
|
|
2,386
|
|
Operational
funding
|
|
|
12,648
|
|
|
|
10,766
|
|
Total
borrowings
|
|
|
15,021
|
|
|
|
13,153
|
|
Included in borrowings is EUR 598 million relating to borrowings measured at fair value (December 31, 2016: EUR 610 million).
During the first three months of 2017, the operational funding increased EUR 1.8 billion due to new FHLB advances.
18. Assets and Liabilities held for sale
The
major type of assets included in the assets held for sale comprise of the reinsurance asset linked to the sale of Aegon UKs annuity portfolio in 2016. The liability included in the liabilities held for sale are the insurance liabilities
related to this portfolio. The UK annuity portfolio was included in the United Kingdom operating segment. For details related to the sale of the UK annuity portfolio, refer to the Annual Report 2016.
19. Commitments and contingencies
There have
been no material changes in contingent assets and liabilities to those reported in the 2016 consolidated financial statements of Aegon.
20. Acquisitions / divestments
On
January 1, 2017 Aegon completed the acquisition of Cofunds Ltd., following regulatory approval. The purchase of the Cofunds Ltd. business was done through a sale and purchase agreement to acquire all the shares and platform assets. The total
consideration of the acquisition amounts to GBP 147 million (EUR 171 million). The fair value of the net assets amounts to GBP 99 million (EUR 116 million), of which GBP 25 million (EUR 29 million) relates to customer
intangibles, resulting in goodwill of GBP 48 million (EUR 56 million). The value of the transferred customer investments as per March 31, 2017 amounted to approximately GBP 87 billion (EUR 102 billion) and are not recognized on
Aegons balance sheet.
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Condensed Consolidated Interim Financial Statements 1Q 2017
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25
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To: The Supervisory Board and the Executive Board of Aegon N.V.
Review report
Introduction
We have reviewed the accompanying condensed consolidated interim financial statements for the three-month period ended March 31, 2017, of Aegon N.V.,
The Hague, as set out on pages 2 to 24, which comprises the condensed consolidated statement of financial position as at March 31, 2017, the condensed consolidated income statement, the condensed consolidated statement of comprehensive income,
the condensed consolidated statement of changes in equity, the condensed consolidated cash flow statement and the selected explanatory notes for the three-month period then ended. Management is responsible for the preparation and presentation of
these condensed consolidated interim financial statements in accordance with IAS 34, Interim Financial Reporting as adopted by the European Union. Our responsibility is to express a conclusion on these condensed consolidated interim
financial statements based on our review.
Scope
We conducted our review in accordance with Dutch law including standard 2410, Review of Interim Financial Information Performed by the Independent Auditor of the
Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with Dutch auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our
review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements as at and for the three-month period ended March 31, 2017, are not prepared, in all material respects,
in accordance with IAS 34, Interim Financial Reporting as adopted by the European Union.
Amsterdam, May 10, 2017
PricewaterhouseCoopers Accountants N.V.
Original has been
signed by
R. Dekkers RA
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Condensed Consolidated Interim Financial Statements 1Q 2017
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Disclaimers
Cautionary note regarding non-IFRS-EU measures
This document includes the
following non-IFRS-EU financial measures: underlying earnings before tax, income tax and income before tax. These non-IFRS-EU measures are calculated by consolidating on a proportionate basis Aegons joint ventures and associated companies. The
reconciliation of these measures to the most comparable IFRS-EU measure is provided in note 3 Segment information of Aegons Condensed Consolidated Interim Financial Statements. Aegon believes that these non-IFRS-EU measures,
together with the IFRS-EU information, provide meaningful information about the underlying operating results of Aegons business including insight into the financial measures that senior management uses in managing the business.
Forward-looking statements
The statements contained in this document that are
not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: aim, believe, estimate, target, intend, may, expect,
anticipate, predict, project, counting on, plan, continue, want, forecast, goal, should, would, is confident, will, and similar expressions as they relate to Aegon. These statements are not guarantees of future performance and involve risks,
uncertainties and assumptions that are difficult to predict. Aegon undertakes no obligation to publicly update or revise any
forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from expectations conveyed in
forward-looking
statements due to changes
caused by various risks and uncertainties. Such risks and uncertainties include but are not limited to the following:
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Changes in general economic conditions, particularly in the United States, the Netherlands and the United Kingdom;
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Changes in the performance of financial markets, including emerging markets, such as with regard to:
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The frequency and severity of defaults by issuers in Aegons fixed income investment portfolios;
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The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities Aegon holds; and
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The effects of declining creditworthiness of certain private sector securities and the resulting decline in the value of government exposure that Aegon holds;
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Changes in the performance of Aegons investment portfolio and decline in ratings of Aegons counterparties;
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Consequences of a potential (partial) break-up of the euro;
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Consequences of the anticipated exit of the United Kingdom from the European Union;
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The frequency and severity of insured loss events;
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Changes affecting longevity, mortality, morbidity, persistence and other factors that may impact the profitability of Aegons insurance products;
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Reinsurers to whom Aegon has ceded significant underwriting risks may fail to meet their obligations;
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Changes affecting interest rate levels and continuing low or rapidly changing interest rate levels;
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Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates;
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Changes in the availability of, and costs associated with, liquidity sources such as bank and capital markets funding, as well as conditions in the credit markets in general such as changes in borrower and counterparty
creditworthiness;
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Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets;
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Changes in laws and regulations, particularly those affecting Aegons operations ability to hire and retain key personnel, taxation of Aegon companies, the products Aegon sells, and the attractiveness of
certain products to its consumers;
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Regulatory changes relating to the pensions, investment, and insurance industries in the jurisdictions in which Aegon operates;
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Standard setting initiatives of supranational standard setting bodies such as the Financial Stability Board and the International Association of Insurance Supervisors or changes to such standards that may have an impact
on regional (such as EU), national or US federal or state level financial regulation or the application thereof to Aegon, including the designation of Aegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII);
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Changes in customer behavior and public opinion in general related to, among other things, the type of products Aegon sells, including legal, regulatory or commercial necessity to meet changing customer expectations;
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Acts of God, acts of terrorism, acts of war and pandemics;
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Changes in the policies of central banks and/or governments;
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Lowering of one or more of Aegons debt ratings issued by recognized rating organizations and the adverse impact such action may have on Aegons ability to raise capital and on its liquidity and financial
condition;
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Lowering of one or more of insurer financial strength ratings of Aegons insurance subsidiaries and the adverse impact such action may have on the premium writings, policy retention, profitability and liquidity of
its insurance subsidiaries;
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The effect of the European Unions Solvency II requirements and other regulations in other jurisdictions affecting the capital Aegon is required to maintain;
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Litigation or regulatory action that could require Aegon to pay significant damages or change the way Aegon does business;
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As Aegons operations support complex transactions and are highly dependent on the proper functioning of information technology, a computer system failure or security breach may disrupt Aegons business,
damage its reputation and adversely affect its results of operations, financial condition and cash flows;
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Customer responsiveness to both new products and distribution channels;
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Competitive, legal, regulatory, or tax changes that affect profitability, the distribution cost of or demand for Aegons products;
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Changes in accounting regulations and policies or a change by Aegon in applying such regulations and policies, voluntarily or otherwise, which may affect Aegons reported results and shareholders equity;
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Aegons projected results are highly sensitive to complex mathematical models of financial markets, mortality, longevity, and other dynamic systems subject to shocks and unpredictable volatility. Should assumptions
to these models later prove incorrect, or should errors in those models escape the controls in place to detect them, future performance will vary from projected results;
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The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Aegons ability to integrate acquisitions and to obtain the anticipated results and synergies from
acquisitions;
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Catastrophic events, either manmade or by nature, could result in material losses and significantly interrupt Aegons business;
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Aegons failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving and excess capital and leverage ratio management initiatives; and
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This press release contains information that qualifies, or may qualify, as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
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Further details of potential risks and uncertainties affecting Aegon are described in its filings with the Netherlands Authority for the Financial Markets and the US
Securities and Exchange Commission, including the Annual Report. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, Aegon expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Aegons expectations with regard thereto or any change in events, conditions or circumstances on which any such
statement is based.
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Condensed Consolidated Interim Financial Statements 1Q 2017
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Corporate and shareholder information
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Headquarters
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Aegon N.V.
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P.O. Box 85
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2501 CB The Hague
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The Netherlands
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+ 31 (0) 70 344 32 10
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aegon.com
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Group Corporate Communications & Investor Relations
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Media relations
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+ 31 (0) 70 344 89 56
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gcc@aegon.com
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Investor relations
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+ 31 (0) 70 344 83 05
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or 877 548 96 68 - toll free, USA only
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ir@aegon.com
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Publication dates quarterly results 2017
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August 10, 2017
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Results second quarter 2017
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November 9, 2017
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Results third quarter 2017
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February 15, 2018
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Results fourth quarter 2017
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Aegons 1Q 2017 press release and Financial Supplement are available on
aegon.com.
About Aegon
Aegons roots go back more than 170 years to the first half of the nineteenth century. Since then, Aegon has grown into an international company, with
businesses in more than 20 countries in the Americas, Europe and Asia. Today, Aegon is one of the worlds leading financial services organizations, providing life insurance, pensions and asset management. Aegons purpose is to help people
achieve a lifetime of financial security. More information:
aegon.com.