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Securities and Exchange Commission

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d/16

of the Securities Exchange Act of 1934

August 2019

 

AEGON N.V.

 

Aegonplein 50

2591 TV THE HAGUE

The Netherlands


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Aegon’s condensed consolidated interim financial statements 1H 2019, dated August 15, 2019, are included as appendix and incorporated herein by reference.

 

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.

 

   

AEGON N.V.

 

   

 

   

 

(Registrant)

Date: August 15, 2019     By  

/s/ J.H.P.M. van Rossum

      J.H.P.M. van Rossum
      Executive Vice President and Head of Corporate Financial Center


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Condensed consolidated interim financial statements 1H 2019 Results

 

 

 

 

 

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

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Condensed consolidated income statement

     2  

Condensed consolidated statement of comprehensive income

     3  

Condensed consolidated statement of financial position

     4  

Condensed consolidated statement of changes in equity

     5  

Condensed consolidated cash flow statement

     6  

Notes to the Condensed consolidated interim financial statements

     7  

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

 

Condensed consolidated income statement

 

 

EUR millions

     Notes       
  First half
2019
 
 
    
  First half
2018
 
 
   

Premium income

     4        9,276         9,929   

Investment income

     5        4,083         3,510   

Fee and commission income

        1,213         1,312   

Other revenues

                      

Total revenues

        14,575         14,752   

Income from reinsurance ceded

        1,815         1,700   

Results from financial transactions

     6        24,237         948   

Other income

              78          

Total income

        40,705         17,401   
   

Benefits and expenses

     7        39,671         16,484   

Impairment charges / (reversals)

     8        153         19   

Interest charges and related fees

        243         231   

Other charges

              (4)        103   

Total charges

        40,063         16,837   
   

Share in profit / (loss) of joint ventures

        106         99   

Share in profit / (loss) of associates

                      

Income / (loss) before tax

        751         665   

Income tax (expense) / benefit

              (133)        (174)  

Net income / (loss)

              618         491   
   

Net income / (loss) attributable to:

          

Owners of Aegon N.V.

        618         491   

Non-controlling interests

                      
   

Earnings per share (EUR per share)

     12              

Basic earnings per common share

        0.28         0.21   

Basic earnings per common share B

        0.01         0.01   

Diluted earnings per common share

        0.28         0.21   

Diluted earnings per common share B

              0.01         0.01   

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

 

Condensed consolidated statement of comprehensive income

 

EUR millions      First half
2019
       First half
2018  1
   

Net income / (loss)

     618       491 
   

Other comprehensive income:

       

Items that will not be reclassified to profit or loss:

       

Changes in revaluation reserve real estate held for own use

     (6)      (10)

Remeasurements of defined benefit plans

     (418)      205 

Income tax relating to items that will not be reclassified

     82       (40)
   

Items that may be reclassified subsequently to profit or loss:

       

Gains / (losses) on revaluation of available-for-sale investments

     2,591       (1,054)

Gains / (losses) transferred to the income statement on disposal and impairment of available-for-sale investments

     (256)      42 

Changes in cash flow hedging reserve

     77       (159)

Movement in foreign currency translation and net foreign investment hedging reserve

     39       368 

Equity movements of joint ventures

         

Equity movements of associates

          (5)

Disposal of group assets

     (1)      36 

Income tax relating to items that may be reclassified

     (518)      225 

Other

          (4)

Total other comprehensive income / (loss) for the period

     1,609       (390)

Total comprehensive income / (loss)

     2,228       101 
   

Total comprehensive income / (loss) attributable to:

       

Owners of Aegon N.V.

     2,227       101 

Non-controlling interests

          (1)

1 Amounts have been restated to reflect the voluntary change in accounting policies related to liability adequacy testing that was adopted by Aegon effective January 1, 2019. Refer to note 2.2 Voluntary changes in accounting policies for details about this change.

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

 

Condensed consolidated statement of financial position
              Jun. 30,
2019
     Dec. 31,
2018  1

EUR millions

     Notes                
   

Assets

          

Cash and cash equivalents

        11,990        8,744  

Investments

     9        144,311        139,024  

Investments for account of policyholders

     10        213,137        194,353  

Derivatives

        11,730        7,615  

Investments in joint ventures

        1,869        1,745  

Investments in associates

        351        327  

Reinsurance assets

        20,610        20,507  

Deferred expenses

        10,395        10,910  

Other assets and receivables

        8,444        8,079  

Intangible assets

              1,638        1,727  

Total assets

            424,475            393,031  
   

Equity and liabilities

          

Shareholders’ equity

        21,481        19,518  

Other equity instruments

              3,384        3,320  

Issued capital and reserves attributable to owners of Aegon N.V.

        24,865        22,838  

Non-controlling interests

              22        22  

Group equity

        24,887        22,860  
   

Subordinated borrowings

        1,392        1,389  

Trust pass-through securities

        136        133  

Insurance contracts

     13        121,274        115,328  

Insurance contracts for account of policyholders

     14        128,435        117,113  

Investment contracts

        18,092        18,048  

Investment contracts for account of policyholders

     15        87,769        80,097  

Derivatives

        10,171        7,230  

Borrowings

     16        9,500        12,061  

Other liabilities

              22,818        18,772  

Total liabilities

 

              399,588        370,171  

Total equity and liabilities

              424,475        393,031  

1 Amounts have been restated to reflect the voluntary change in accounting policies related to liability adequacy testing that was adopted by Aegon effective January 1, 2019. Refer to note 2.2 Voluntary changes in accounting policies for details about this change.

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

 

Condensed consolidated statement of changes in equity

 

 
EUR millions   Share
capital  1
    Retained
earnings
    Revaluation
reserves
 

  Remeasurement
of defined benefit

plans

  Other
  reserves
  Other equity
  instruments
  Issued
  capital and
reserves 2
  Non-
  controlling
interests
          Total  
       

Six months ended June 30, 2019

                       
       

At beginning of year

    7,808       9,975       3,461       (1,850     149       3,320       22,864       22       22,885  

Changes in accounting policies relating to new effective standards

    -       (44     -       -       -       -       (44     -       (44

Voluntary change in accounting policy 3

    -       -       (26     -       -       -       (26     -       (26

Adjusted balance at beginning of year

    7,808       9,931       3,436       (1,850     149       3,320       22,794       22       22,816  
       

Net income / (loss) recognized in the income statement

    -       618       -       -       -       -       618       -       618  
       

Other comprehensive income:

                       

Items that will not be reclassified to profit or loss:

                       

Changes in revaluation reserve real estate held for own use

    -       14       (20     -       -       -       (6     -       (6

Remeasurements of defined benefit plans

    -       -       -       (418     -       -       (418     -       (418

Income tax relating to items that will not be reclassified

    -       -       1       80       -       -       82       -       82  
       

Items that may be reclassified subsequently to profit or loss:

                       

Gains / (losses) on revaluation of available-for-sale investments

    -       -       2,591       -       -       -       2,591       -       2,591  

Gains / (losses) transferred to income statement on disposal and impairment of available-for-sale investments

    -       -       (256     -       -       -       (256     -       (256

Changes in cash flow hedging reserve

    -       -       77       -       -       -       77       -       77  

Movement in foreign currency translation and net foreign investment hedging reserves

    -       -       (10     (2     51       -       39       -       39  

Equity movements of joint ventures

    -       -       -       -       7       -       7       -       7  

Equity movements of associates

    -       -       -       -       4       -       4       -       4  

Disposal of group assets

    -       -       -       -       (1     -       (1     -       (1

Income tax relating to items that may be reclassified

    -       -       (513     -       (5     -       (518     -       (518

Other

    -       9       -       -       -       -       9       -       9  

Total other comprehensive income

    

    -       24       1,869       (341     57       -       1,609       -       1,609  

Total comprehensive income / (loss) for 2019

    -       642       1,869       (341     57       -       2,227       -       2,228  
       

Issuance and purchase of (treasury) shares

    -       155       -       -       -       -       155       -       155  

Dividends paid on common shares

    (139     (170     -       -       -       -       (309     -       (309

Issuance other equity instruments

      (4     -       -       -       500       496       -       496  

Redemption other equity instruments

    -       (16     -       -       -       (424     (440     -       (440

Coupons on perpetual securities

    -       (48     -       -       -       -       (48     -       (48

Incentive plans

    -       2       -       -       -       (13     (11     -       (11

At end of period

    7,669       10,492       5,305       (2,191     206       3,384       24,865       22       24,887  
       

Six months ended June 30, 2018

                       
       

At beginning of year

    8,053       9,659       4,920       (1,669     (390     3,794       24,366       20       24,386  

Voluntary change in accounting policy 3

    -       -       (23     -       -       -       (23     -       (23

Adjusted balance at beginning of year

    8,053       9,659       4,898       (1,669     (390     3,794       24,344       20       24,364  
       

Net income / (loss) recognized in the income statement

    -       491       -       -       -       -       491       -       491  
       

Other comprehensive income:

                       

Items that will not be reclassified to profit or loss:

                       

Changes in revaluation reserve real estate held for own use

    -       -       (10     -       -       -       (10     -       (10

Remeasurements of defined benefit plans

    -       -       -       205       -       -       205       -       205  

Income tax relating to items that will not be reclassified

    -       -       2       (42     -       -       (40     -       (40
       

Items that may be reclassified subsequently to profit or loss:

                       

Gains / (losses) on revaluation of available-for-sale investments

    -       -       (1,054     -       -       -       (1,054     -       (1,054

Gains / (losses) transferred to income statement on disposal and impairment of available-for-sale investments

    -       -       42       -       -       -       42       -       42  

Changes in cash flow hedging reserve

    -       -       (159     -       -       -       (159     -       (159

Movement in foreign currency translation and net foreign investment hedging reserves

    -       -       53       (17     332       -       368       -       368  

Equity movements of joint ventures

    -       -       -       -       6       -       6       -       6  

Equity movements of associates

    -       -       -       -       (5     -       (5     -       (5

Disposal of group assets

    -       -       -       -       36       -       36       -       36  

Income tax relating to items that may be reclassified

    -       -       245       -       (20     -       225       -       225  

Other

    -       (3     -       -       -       -       (3     (1     (4

Total other comprehensive income

    

    -       (3     (881     146       349       -       (390     (1     (390

Total comprehensive income / (loss) for 2018

    -       487       (881     146       349       -       101       (1     101  
       

Issuance and purchase of (treasury) shares

    -       137       -       -       -       -       137       -       137  

Other equity instruments redeemed

    -       2       -       -       -       (471     (468     -       (468

Dividends paid on common shares

    (119     (167     -       -       -       -       (286     -       (286

Coupons on non-cumulative subordinated notes

    -       (11     -       -       -       -       (11     -       (11

Coupons on perpetual securities

    -       (46     -       -       -       -       (46     -       (46

Incentive plans

    -       -       -       -       -       (13     (12     -       (12

At end of period

    7,934       10,062       4,017       (1,523     (42     3,310       23,759       19       23,778  

1 For a breakdown of share capital please refer to note 12.

2 Issued capital and reserves attributable to owners of Aegon N.V.

3 Amounts have been restated to reflect the voluntary change in accounting policies related to liability adequacy testing that was adopted by Aegon effective January 1, 2019. Refer to note 2.2 Voluntary changes in accounting policies for details about this change.

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

 

Condensed consolidated cash flow statement

 

 
EUR millions     First half
2019
        First half
2018
 
   

Income / (loss) before tax

    751       665  

Results from financial transactions

    (24,510     (1,218

Amortization and depreciation

    491       580  

Impairment losses

    143       14  

Income from joint ventures

    (106     (99

Income from associates

    (4     (2

Release of cash flow hedging reserve

    (53     (33

Other

    (13     40  

Adjustments of non-cash items

    (24,052     (718

Insurance and investment liabilities

    3,324       1,045  

Insurance and investment liabilities for account of policyholders

    18,656       (3,509

Accrued expenses and other liabilities

    103       (2,535

Accrued income and prepayments

    (394     1,119  

Changes in accruals

    21,688       (3,880

Purchase of investments (other than money market investments)

    (18,686     (16,518

Purchase of derivatives

    (467     (1,046

Disposal of investments (other than money market investments)

    20,418       15,105  

Disposal of derivatives

    1,107       (462

Net purchase of investments for account of policyholders

    3,386       4,890  

Net change in cash collateral

    2,523       435  

Net purchase of money market investments

    (656     513  

Cash flow movements on operating items not reflected in income

    7,625       2,916  

Tax paid

    (47     45  

Other

    (4     (2

Net cash flows from operating activities

    5,962       (973
   

Purchase of individual intangible assets (other than VOBA and future servicing rights)

    (16     (17

Purchase of equipment and real estate for own use

    (45     (18

Acquisition of subsidiaries, net of cash

    (1     (1

Acquisition joint ventures and associates

    (51     (104

Disposal of equipment

    39       4  

Disposal of subsidiaries, net of cash

    137       13  

Disposal joint ventures and associates

    1       5  

Dividend received from joint ventures and associates

    24       30  

Net cash flows from investing activities

    87       (89
   

Issuance of perpetuals

    496       -  

Proceeds from TRUPS 1 , subordinated loans and borrowings

    3,751       1,282  

Repayment of perpetuals

    (440     -  

Repayment of TRUPS 1 , subordinated loans and borrowings

    (6,357     (1,175

Repayment of non-cumulative subordinated notes

    -       (271

Dividends paid

    (170     (167

Coupons on perpetual securities

    (64     (62

Coupons on non-cumulative subordinated notes

    -       (14

Payment of principal portion of lease liability

    (26     -  

Net cash flows from financing activities

    

    (2,808     (407

Net increase / (decrease) in cash and cash equivalents 2

    3,241       (1,469
   

Net cash and cash equivalents at the beginning of the reporting period

    8,744       11,026  

Effects of changes in exchange rate

    (1     28  

Net cash and cash equivalents at the end of the reporting period

    11,984       9,585  
   

Cash and cash equivalents

    11,990       9,585  

Bank overdrafts classified as other liabilities

    (6     -  

Net cash and cash equivalents

    11,984       9,585  

1 Trust pass-through securities.

2 Included in net increase / (decrease) in cash and cash equivalents are: interest received (2019: EUR 2,983, 2018: EUR 2,740 million), dividends received (2019: EUR 1,067 million, 2018: EUR 664 million), interest paid (2019: EUR 137 million, 2018: EUR 71 million) of which payment of the interest portion of the lease liability (2019: EUR 5 million).

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

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 almost 26,000 people worldwide.

1. Basis of presentation

The condensed consolidated interim financial statements as at, and for the six months period ended, June 30, 2019 (first half 2019), have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’, as adopted by the European Union (hereafter ‘IFRS-EU’). They do not include all of the information required for a full set of financial statements prepared in accordance with IFRS-EU and should therefore be read together with the 2018 consolidated financial statements of Aegon N.V. as included in Aegon’s Integrated Annual Report for 2018. Aegon’s Integrated Annual Report for 2018 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. The condensed consolidated interim financial statements as at, and for the six-month period ended, June 30, 2019, were approved by the Supervisory Board on August 14, 2019.

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.

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 2018 consolidated financial statements, except for new IFRS accounting standards and a voluntary accounting policy change that became effective per January 1, 2019:

2.1. New IFRS accounting standards effective from 2019

The following standards, interpretations, amendments to standards became effective for Aegon in 2019 and have been endorsed by the European Union:

 

IFRS 16 Leases;

 

IFRIC 23 Uncertainty over Income Tax Treatments;

 

Annual Improvements to IFRS Standards 2015-2017 Cycle; and

 

Amendments to IAS 19: Plan Amendment, Curtailment or Settlement.

Except for IFRS 16 Leases, none of these revised standards and interpretations are significantly impacting the financial position or the condensed consolidated interim financial statements.

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

IFRS 16 Leases

IFRS 16 Leases was issued by the IASB in January 2016 and replaced IAS 17 Leases and IFRIC 4 on January 2019. The most significant change of IFRS 16 is related to leases that were identified as operational leases held by a lessee under IAS 17. Under IAS 17 these leases were reported as (off- balance) Operating lease obligations, and after January 1, 2019 reported as (on-balance) lease liabilities with the accompanying lease assets.

The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4.

Policy applicable from January 1, 2019

As a lessee

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of real estate and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses (using the same rate to measure the lease liability), if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option.

The Group presents right-of-use assets that do not meet the definition of investment property in ‘Other assets and receivables’ and lease liabilities in ‘Other liabilities’ in the statement of financial position.

Short-term leases and leases of low-value assets

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets, including small office equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

As a lessor

From a lessor perspective, IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17, only with additional disclosure requirements. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently.

 

Unaudited

 

 

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Transitional disclosures

The Group applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at January 1, 2019.

As a lessee

The Group has adopted a number of key options and practical expedients allowed under IFRS 16 as disclosed in the 2018 consolidated financial statements.

As a lessor

The Group is not required to make any adjustments on transition to IFRS 16 for leases in which it acts as a lessor, except for a sub-lease. The Group accounted for its leases in accordance with IFRS 16 from the date of initial application.

Impacts on financial statements

At transition, the Group recognized EUR 235 million of right-of-use assets and lease liabilities of EUR 285 million, recognising the adverse impact of EUR 41 million in shareholders’ equity, in retained earnings. The right-of-use assets mainly consist of approximately EUR 212 million real estate and of approximately EUR 23 million equipment. The largest right-of-use assets are office buildings located in the United Kingdom and US for an amount of EUR 116 million and EUR 50 million respectively. The Group does not expect material movements in net income going forward.

When measuring lease liabilities, the Group discounted lease payments using its incremental borrowing rate at January 1, 2019. The weighted-average rate applied is 3.46%.

The reconciliation between operating lease commitments at December 31, 2018 and lease liabilities at January 1, 2019 is as follows:

 

   
          
EUR millions    January 1, 2019  
   

Operating lease commitments at December 31, 2018
as per the consolidated annual financial statements

     386  

Discounted using the incremental borrowing rate at January 1, 2019

     302  

Recognition exemption for:

    

Short term leases

     (7

Extension and termination options reasonably certain to be exercised

     (4

Exclusion of non-lease components

     (6

Lease liabilities recognized at January 1, 2019

     285  

 

Unaudited

 

 

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2.2. Voluntary change in accounting policy

Effective January 1, 2019 Aegon adopted a voluntary accounting policy change related to the liability adequacy test (LAT) of Aegon the Netherlands, which is applied retrospectively for all periods presented.

The recognition of a LAT deficit (refer to note 13) in Aegon the Netherlands triggered a review and change of its existing accounting policy related to the LAT. The change relates to the period considered for the unrealized gains on financial assets that are accounted for at amortized cost which are taken into account in the LAT, specifically where they relate to intercompany transactions between insurance and non-insurance entities.

The change does not impact other reporting units within Aegon as this change is specific to Aegon the Netherlands.

The impact of the change in accounting policy on the current period, first half of 2019, is a decrease in net income of EUR 32 million, a decrease in shareholders’ equity of EUR 7 million, an increase in insurance contracts of EUR 9 million and a decrease in other liabilities of EUR 2 million.

Impact of the adjustment on previous periods is provided in the following tables, including references to the notes that are impacted by the change in accounting policy.

 

 

Impact of voluntary changes in accounting policies on condensed consolidated statement of comprehensive income

 

 
   
     

First half 2018

(as previously

reported)

 

   

Change in accounting policy

related to liability adequacy

testing

 

   

First half 2018
(restated)

 

 

EUR millions

                        
   

Net income / (loss)

     491       -       491  
   

Items that may be reclassified subsequently to profit or loss:

        

Gains / (losses) on revaluation of available-for-sale investments

     (1.057     3       (1.054

Income tax relating to items that may be reclassified

     225       (1     225  

Net effect comprehensive income

     98       2       101  
   

Total comprehensive income / (loss) attributable to:

        

Owners of Aegon N.V.

     99       2       101  

Non-controlling interests

     (1     -       (1
      

 

Impact of voluntary changes in accounting policies on condensed consolidated statement of comprehensive income

 

 
   
     

FY 2018
(as previously
reported) 1

 

   

Change in accounting policy
related to liability adequacy
testing

 

   

FY 2018
(restated)

 

 

EUR millions

                        
   

Net income / (loss)

     744       -       744  
   

Items that may be reclassified subsequently to profit or loss:

        

Gains / (losses) on revaluation of available-for-sale investments

     (2.138     (4     (2.142

Income tax relating to items that may be reclassified

     493       1       494  

Net effect comprehensive income

     (359     (3     (362
   

Total comprehensive income / (loss) attributable to:

        

Owners of Aegon N.V.

     (361     (3     (364

Non-controlling interests

     2       -       2  

1 As reported in Aegon’s Annual Report dated March 21, 2019.

 

Unaudited

 

 

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Impact of voluntary changes in accounting policies on the condensed consolidated statement of financial position

 
   
             Dec. 31, 2018
(as previously
reported) 1
    Change in accounting policy
related to liability adequacy
testing
    Dec. 31, 2018
(restated)
 
      Notes                        
EUR millions                              
   

Equity and liabilities

        19.543        (26     19.518  

Shareholders’ equity

           
   

Insurance contracts

     13        115.294       34       115.328   

Other liabilities

              18.781       (9     18.772  

1 As reported in Aegon’s Annual Report dated March 21, 2019.

 

         

Impact of voluntary changes in accounting policies on condensed consolidated statement of changes in equity

 
   
             Dec. 31, 2018
(as previously
reported) 1
    Change in accounting policy
related to liability adequacy
testing
    Dec. 31, 2018
(restated)
 
      Notes                        
EUR millions                              
   

Share capital

        7.808       -       7.808  

Retained earnings

        9.975       -       9.975  

Revaluation reserves

        3.461       (26     3.436  

Remeasurement of defined benefit plans

        (1.850     -       (1.850

Other reserves

              149       -       149  

Shareholders’ equity

              19.543       (26     19.518  

1 As reported in Aegon’s Annual Report dated March 21, 2019.

2.3. Other

Taxes

Taxes on income for the six-month period ended June 30, 2019, are calculated using the tax rate that is estimated to be applicable to earnings for the full year.

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 Group’s 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, 2018.

Exchange rates

Assets and liabilities of foreign operations are translated to the presentation currency 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 (most important rates) are applied for the condensed consolidated interim financial statements:

Closing exchange rates

         
                  USD    GBP
         

June 30, 2019

   1    EUR    1.1388    0.8948
         

December 31, 2018

   1    EUR    1.1432    0.8976

Weighted average exchange rates

           
         
               USD    GBP
         

Six months ended June 30, 2019

   1    EUR    1.1299    0.8730
         

Six months ended June 30, 2018

   1      EUR        1.2113        0.8794    

 

Unaudited

 

 

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3. Segment information

3.1. Performance measure

Aegon has changed the grouping of the operating segments included in the performance measure. Previously, the operating segments ‘Spain & Portugal’ and ‘Central & Eastern Europe’ were disclosed separately in the segment information whilst as of 2019 these are being disclosed combined under the operating segment ‘Southern & Eastern Europe’. As a result the tables presented in section 3.2 and 3.3 have been updated to reflect this change. Note that there are no changes to numbers reported for the reportable segment Europe.

3.2. Income statement

 

                                                                                                                                                                                                                                                                                                           
                         
EUR millions    Americas    

The

Netherlands

   

United

Kingdom

    Southern &
Eastern
Europe
    Europe     Asia    

Asset

Management

    Holding and
other
activities
    Eliminations     Segment
total
    Joint
ventures and
associates
eliminations
    Consolidated  

Six months ended June 30, 2019

                            
     

Underlying earnings before tax geographically

     576       328       70       42       439       32       60       (97     -       1,010       26       1,037  

Fair value items

     157       (459     (76     -       (536     (5     -       (10     -       (394     (42     (436

Realized gains / (losses) on investments

     24       230       1       21       252       (2     -       1       -       275       (1     274  

Impairment charges

     (30     (13     -       -       (13     -       -       (10     -       (54     -       (53

Impairment reversals

     11       4       -       -       4       -       -       -       -       15       -       15  

Other income / (charges)

     (63     4       (16     41       29       (16     (1     (41     -       (93     -       (93

Run-off businesses

     8       -       -       -       -       -       -       -       -       8       -       8  

Income / (loss) before tax

     685       93       (22     103       174       8       59       (159     -       767       (16     751  

Income tax (expense) / benefit

     (101     (26     (23     (10     (59     (1     (16     28       -       (149     16       (133

Net income / (loss)

     584       67       (44     92       115       7       43       (130     -       618       -       618  

Inter-segment underlying earnings

     (33     (56     (42     (8     (106     (2     96       46              
     

Revenues

                            

Life insurance gross premiums

     3,619       852       3,291       277       4,420       417       -       6       (4     8,458       (374     8,084  

Accident and health insurance

     702       164       14       97       275       51       -       -       -       1,028       (32     996  

Property & casualty insurance

     -       66       -       193       259       -       -       1       (1     259       (63     196  

Total gross premiums

     4,320       1,081       3,305       568       4,954       468       -       6       (5     9,745       (469     9,276  

Investment income

     1,577       1,122       1,230       39       2,391       149       2       139       (144     4,114       (31     4,083  

Fee and commission income

     848       114       95       25       235       29       297       -       (94     1,315       (102     1,213  

Other revenues

     3       -       -       -       -       1       -       3       -       7       (4     3  

Total revenues

     6,749       2,318       4,631       632       7,581       646       300       148       (243     15,180       (606     14,575  

Inter-segment revenues

     -       4       -       -       4       -       94       144                                  
                        
                         
EUR millions    Americas    

The

Netherlands

   

United

Kingdom

    Southern &
Eastern
Europe
    Europe     Asia    

Asset

Management

    Holding and
other
activities
    Eliminations     Segment
total
    Joint
ventures and
associates
eliminations
    Consolidated  

Six months ended June 30, 2018

                            
     

Underlying earnings before tax geographically

     602       318       69       49       435       31       83       (88     -       1,064       26       1,090  

Fair value items

     (75     81       (4     -       76       (2     -       (3     -       (3     (51     (54

Realized gains / (losses) on investments

     (124     39       21       1       61       (9     2       3       -       (67     (2     (69

Impairment charges

     (17     (4     -       (1     (4     -       -       (5     -       (26     -       (26

Impairment reversals

     21       4       -       1       5       -       -       -       -       26       -       26  

Other income / (charges)

     (87     27       (182     (25     (179     (5     (1     (21     -       (294     1       (294

Run-off businesses

     (7     -       -       -       -       -       -       -       -       (7     -       (7

Income / (loss) before tax

     313       466       (97     26       395       15       83       (113     -       692       (27     665  

Income tax (expense) / benefit

     (74     (98     -       (9     (106     (14     (27     21       -       (201     27       (174

Net income / (loss)

     239       368       (97     17       288       1       55       (92     -       491       -       491  

Inter-segment underlying earnings

     (28     (52     (44     (9     (104     (2     98       37              
     

Revenues

                            

Life insurance gross premiums

     3,392       902       3,900       321       5,124       440       -       4       (3     8,956       (313     8,644  

Accident and health insurance

     810       152       15       95       262       50       -       -       -       1,123       (24     1,099  

Property & casualty insurance

     -       70       -       173       243       -       -       1       (1     243       (56     187  

Total gross premiums

     4,202       1,125       3,915       589       5,629       490       -       5       (4     10,322       (393     9,929  

Investment income

     1,494       1,109       765       42       1,915       128       3       135       (136     3,539       (29     3,510  

Fee and commission income

     951       98       105       31       234       30       326       -       (102     1,440       (128     1,312  

Other revenues

     2       -       -       -       -       1       1       2       -       5       (4     2  

Total revenues

     6,650       2,332       4,785       662       7,779       649       330       141       (242     15,307       (554     14,752  

Inter-segment revenues

     -       1       -       -       1       -       102       139                                  

Aegon’s segment information is prepared by consolidating on a proportionate basis Aegon’s joint ventures and associated companies.

A pre-tax charge of EUR 64 million (1H 2018: EUR 7 million pre-tax charge) has been recorded in other income/(charges) in respect of assumption changes and model updates. The impact is mainly attributable to Aegon’s business in the Americas. Assumption changes and model updates in the Americas led to a net negative impact of EUR 71 million mainly driven by updates to Universal Life products for surrender, lapse and mortality to reflect actual experience, partially offset by gains driven by updates to the annuitization of Variable Deferred Annuities Guaranteed Minimum Income Benefit and to the returns on Equity-Index Universal Life.

 

Unaudited

 

 

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3.3 Investments

Amounts included in the tables on investments are presented on an IFRS basis, which means that investments in joint ventures and associates are not consolidated on a proportionate basis. Instead, these investments are included on a single line using the equity method of accounting.

 

                                                                                                                                                                                                                 
                                                                             EUR millions  
June 30, 2019    Americas      The
Netherlands
     United
Kingdom
     Southern &
Eastern
Europe
     Europe      Asia      Asset
Management
     Holdings
and other
activities
     Eliminations     Total  

Investments

                                

Shares

     481        1,560        76        88        1,723        9        4        133        -       2,351  

Debt securities

     53,251        22,586        1,015        1,420        25,022        6,220        94        2        -       84,589  

Loans

     10,327        33,668        -        147        33,815        41        -        13        -       44,197  

Other financial assets

     9,214        67        893        3        964        107        115        21        -       10,421  

Investments in real estate

     498        2,237        -        19        2,256        -        -        -        -       2,754  

Investments general account

     73,772        60,118        1,984        1,677        63,780        6,378        213        168        -       144,311  

Shares

     -        8,262        15,007        358        23,627        -        -        -        (5     23,622  

Debt securities

     1,371        11,992        7,639        182        19,812        -        -        -        -       21,183  

Unconsolidated investment funds

     102,026        806        55,141        617        56,564        85        -        -        -       158,675  

Other financial assets

     3        4,398        4,651        3        9,052        -        -        -        -       9,054  

Investments in real estate

     -        -        603        -        603        -        -        -        -       603  

Investments for account of policyholders

     103,400        25,458        83,041        1,159        109,657        85        -        -        (5     213,137  
     

Investments on balance sheet

     177,172        85,576        85,025        2,836        173,437        6,463        213        168        (5     357,448  

Off balance sheet investments third parties

     227,419        4,247        116,452        5,438        126,137        1,105        160,521        -        (982     514,200  

Total revenue generating investments

     404,591        89,823        201,477        8,274        299,574        7,567        160,733        168        (987     871,648  

Investments

                                

Available-for-sale

     59,849        20,518        1,513        1,491        23,522        6,318        102        30        -       89,821  

Loans

     10,327        33,668        -        147        33,815        41        -        13        -       44,197  

Financial assets at fair value through profit or loss

     106,498        29,153        82,909        1,179        113,241        103        110        126        (5     220,074  

Investments in real estate

     498        2,237        603        19        2,858        -        -        -        -       3,356  

Total investments on balance sheet

     177,172        85,576        85,025        2,836        173,437        6,463        213        168        (5     357,448  
     

Investments in joint ventures

     -        1,049        -        494        1,543        185        141        -        -       1,869  

Investments in associates

     75        82        8        5        95        31        134        16        -       351  

Other assets

     36,710        21,161        3,803        516        25,480        2,487        302        33,692        (33,864     64,807  

Consolidated total assets

     213,958        107,868        88,835        3,852        200,555        9,166        789        33,876        (33,869     424,475  

Due to the announced divestment of Aegon’s 50% stake in the joint venture with Sony Life, Revenue Generating Investments of Japan are no longer included in 1H2019.

 

Off-balance investments for Japan amount to EUR 2.1 billion per June 30, 2019.

 

                            
                                                                             EUR millions  
December 31, 2018    Americas      The
Netherlands
     United
Kingdom
     Southern &
Eastern
Europe
     Europe      Asia      Asset
Management
     Holdings
and other
activities
     Eliminations     Total  

Investments

                                

Shares

     532        1,412        3        74        1,490        7        4        128        -       2,161  

Debt securities

     51,681        21,586        1,005        1,417        24,007        5,526        36        3        -       81,253  

Loans

     9,945        32,935        -        143        33,078        16        -        12        -       43,052  

Other financial assets

     8,367        54        1,105        5        1,165        170        142        14        -       9,858  

Investments in real estate

     530        2,150        -        21        2,171        -        -        -        -       2,700  

Investments general account

     71,055        58,137        2,114        1,660        61,911        5,720        181        157        -       139,024  

Shares

     -        7,403        13,044        198        20,644        -        -        -        (5     20,640  

Debt securities

     1,716        11,283        7,259        183        18,725        -        -        -        -       20,441  

Unconsolidated investment funds

     93,548        1,059        48,296        795        50,149        103        -        -        -       143,800  

Other financial assets

     79        4,022        4,748        11        8,782        -        -        -        -       8,861  

Investments in real estate

     -        -        612        -        612        -        -        -        -       612  

Investments for account of policyholders

     95,343        23,767        73,958        1,187        98,912        103        -        -        (5     194,353  
     

Investments on balance sheet

     166,398        81,904        76,072        2,847        160,823        5,823        181        157        (5     333,377  

Off balance sheet investments third parties

     204,184        3,339        106,347        5,851        115,537        2,818        149,197        -        (774     470,963  

Total revenue generating investments

     370,583        85,243        182,419        8,698        276,360        8,641        149,378        157        (778     804,341  

Investments

                                

Available-for-sale

     55,921        19,974        1,459        1,483        22,916        5,686        131        21        -       84,675  

Loans

     9,945        32,935        -        143        33,078        16        -        12        -       43,052  

Financial assets at fair value through profit or loss

     100,002        26,846        74,001        1,200        102,047        121        50        123        (5     202,339  

Investments in real estate

     530        2,150        612        21        2,783        -        -        -        -       3,312  

Total investments on balance sheet

     166,398        81,904        76,072        2,847        160,823        5,823        181        157        (5     333,377  
     

Investments in joint ventures

     1        1,001        -        472        1,474        152        119        -        -       1,745  

Investments in associates

     72        85        8        5        98        17        131        8        -       327  

Other assets

     37,674        13,491        3,104        494        17,075        2,662        336        28,866        (29,045     57,582  

Consolidated total assets

     204,145        96,481        79,184        3,819        179,471        8,654        767        29,031        (29,050     393,031  

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

4. Premium income and premiums paid to reinsurers

 

                                     
                    
EUR millions    First half
2019
     First half
2018
 
   

Premium income

       

Life insurance

     8,084        8,644  

Non-life insurance

     1,192        1,285  

Total premium income

     9,276        9,929  

Accident and health insurance

     996        1,099  

Property & casualty insurance

     196        187  

Non-life Insurance premium income

     1,192        1,285  
   

Premiums paid to reinsurers 1

       

Life insurance

     1,163        1,293  

Non-life insurance

     73        75  

Total premiums paid to reinsurers

     1,236        1,369  

Accident and health insurance

     67        70  

Property & casualty insurance

     6        5  

Non-life Insurance paid to reinsurers

     73        75  
1

Premiums paid to reinsurers are recorded within Benefits and expenses in the income statement - refer to note 7 - Benefits and expenses.

5. Investment income

 

                                     
                    
EUR millions    First half
2019
     First half
2018
 
   

Interest income

     2,971        2,799  

Dividend income

     1,051        643  

Rental income

     60        68  

Total investment income

     4,083        3,510  
   

Investment income related to general account

     2,632        2,523  

Investment income for account of policyholders

     1,451        987  

Total

     4,083        3,510  

6. Results from financial transactions

 

                                     
                   
EUR millions    First half
2019
    First half
2018
 
   

Net fair value change of general account financial investments at FVTPL other than derivatives

     173       (12

Realized gains /(losses) on financial investments

     262       (70

Gains /(losses) on investments in real estate

     89       118  

Net fair value change of derivatives

     1,557       106  

Net fair value change on for account of policyholder financial assets at FVTPL

     22,146       752  

Net fair value change on investments in real estate for account of policyholders

     (6     11  

Net foreign currency gains /(losses)

     14       26  

Net fair value change on borrowings and other financial liabilities

     1       17  

Total

     24,237       948  

The increase in results from financial transactions is driven by the higher net fair value change on for account of policyholder financial assets at FVTPL for the first six months of 2019 compared to the first six months of 2018. The increase is mainly driven by favorable equity markets and decreasing interest rates. 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 7 Benefits and expenses.

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

7. Benefits and expenses

 

                                             
                   
EUR millions    First half
2019
    First half
2018
 
   

Claims and benefits

     37,876       14,665  

Employee expenses

     1,078       1,049  

Administration expenses

     720       688  

Deferred expenses

     (407     (417

Amortization charges

     403       500  

Total

     39,671       16,484  
    
                   
EUR millions    First half
2019
    First half
2018
 
   

Benefits and claims paid life

     9,545       9,974  

Benefits and claims paid non-life

     814       846  

Change in valuation of liabilities for insurance contracts

     20,560       3,517  

Change in valuation of liabilities for investment contracts

     4,587       (2,262

Other

     (37     (8

Policyholder claims and benefits

     35,469       12,066  

Premium paid to reinsurers

     1,236       1,369  

Profit sharing and rebates

     8       11  

Commissions

     1,164       1,219  

Total

     37,876       14,665  

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 FVTPL included in Results from financial transactions (note 6) of EUR 22,146 million for 1H 2019 (1H 2018: EUR 752 million). In addition, the line “change in valuation of liabilities for insurance contracts” includes an increase of technical provisions for life insurance contracts of EUR 1,965 million for 1H 2019 (1H 2018: increase of EUR 793 million).

8. Impairment charges/(reversals)

 

                                             
                   
EUR millions    First half
2019
    First half
2018
 
   

Impairment charges / (reversals) comprise:

      

Impairment charges on financial assets, excluding receivables

     70       24  

Impairment reversals on financial assets, excluding receivables

     (15     (26

Impairment charges / (reversals) on non-financial assets and receivables

     98       21  

Total

     153       19  
   

Impairment charges on financial assets, excluding receivables, from:

      

Shares

     3       3  

Debt securities and money market instruments

     29       1  

Loans

     38       20  

Total

     70       24  
   

Impairment reversals on financial assets, excluding receivables, from:

      

Debt securities and money market instruments

     (11     (19

Loans

     (4     (6

Other

     (1     (1

Total

     (15     (26

Impairment charges/(reversals) on non-financial assets and receivables are mainly due to a write-off (EUR 76 million) of VOBA and DPAC as a result of a LAT shortfall in Aegon the Netherlands. Refer to note 13 “Insurance contracts” for further details on the LAT impact.

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

9. Investments

 

    

 

               
EUR millions    Jun. 30, 2019                      Dec. 31, 2018  
   

Available-for-sale (AFS)

     89,821         84,675  

Loans

     44,197         43,052  

Financial assets at fair value through profit or loss (FVTPL)

     7,539         8,597  

Financial assets, for general account, excluding derivatives

     141,557         136,324  

Investments in real estate

     2,754         2,700  

Total investments for general account, excluding derivatives

     144,311         139,024  

 

Financial assets, for general account, excluding derivatives

 

                               

EUR millions

     AFS        FVTPL        Loans        Total  
   

Shares

     420        1,931        -        2,351  

Debt securities

     81,720        2,869        -        84,589  

Money market and other short-term investments

     6,783        170        -        6,953  

Mortgages loans

     -        -        37,642        37,642  

Private loans

     -        -        4,188        4,188  

Deposits with financial institutions

     -        -        119        119  

Policy loans

     -        -        1,993        1,993  

Other

     899        2,569        255        3,722  

June 30, 2019

     89,821        7,539        44,197        141,557  
               
       AFS        FVTPL        Loans        Total  
   

Shares

     478        1,682        -        2,161  

Debt securities

     77,340        3,913        -        81,253  

Money market and other short-term investments

     5,955        352        -        6,307  

Mortgages loans

     -        -        36,639        36,639  

Private loans

     -        -        4,103        4,103  

Deposits with financial institutions

     -        -        141        141  

Policy loans

     -        -        1,973        1,973  

Other

     902        2,649        196        3,747  

December 31, 2018

     84,675        8,597        43,052        136,324  

10. Investments for account of policyholders

 

    

 

               
EUR millions    Jun. 30, 2019                      Dec. 31, 2018  
   

Shares

     23,622         20,640  

Debt securities

     21,183         20,441  

Money market and short-term investments

     1,566         1,578  

Deposits with financial institutions

     3,126         3,263  

Unconsolidated investment funds

     158,675         143,800  

Other

     4,362         4,020  

Total investments for account of policyholders at fair value through profit or loss, excluding derivatives

     212,535          193,741  

Investment in real estate

     603         612  

Total investments for account of policyholders

     213,137          194,353  

Investments for account of policyholders increased in the first half of 2019 by EUR 18.8 billion to EUR 213 billion compared to December 31, 2018 mainly due to increased investment return, driven by positive equity market movements and declining interest rates.

 

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11. 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    As at June 30, 2019     As at December 31, 2018  
      Level I      Level II      Level III     Total     Level I      Level II      Level III     Total  
       

Financial assets carried at fair value

                      

Available-for-sale investments

                      

Shares

     83        168        170        420        82        155        241        478  

Debt securities

     25,596        55,109        1,014       81,720       24,652        51,446        1,242       77,340  

Money markets and other short-term instruments

     1,863        4,471        449       6,783       1,427        4,528        -       5,955  

Other investments at fair value

     -        392        507       899       -        409        493       902  

Total Available-for-sale investments

     27,542        60,140        2,140       89,821       26,160        56,538        1,976       84,675  
       

Fair value through profit or loss

                      

Shares

     156        325        1,450       1,931       217        239        1,226       1,682  

Debt securities

     275        2,590        5       2,869       1,868        2,028        17       3,913  

Money markets and other short-term instruments

     18        152        -       170       17        335        -       352  

Other investments at fair value

     1        1,003        1,564       2,569       1        1,272        1,376       2,649  

Investments for account of policyholders 1

     114,915        95,826        1,794       212,535       103,977        87,893        1,871       193,741  

Derivatives

     37        11,623        70       11,730       53        7,527        35       7,615  

Total Fair value through profit or loss

     115,401        111,519        4,884       231,804       106,134        99,295        4,525       209,954  

Total financial assets at fair value

         142,943              171,659                7,024             321,625             132,294              155,833                6,502             294,628  
       

Financial liabilities carried at fair value

                      

Investment contracts for account of policyholders 2

     -        55,427        193       55,620       -        49,641        206       49,847  

Borrowings 3

     -        537        -       537       -        536        -       536  

Derivatives

     162        6,872        3,136       10,171       93        4,648        2,489       7,230  

Total financial liabilities at fair value

     162        62,836        3,329       66,327       93        54,824        2,695       57,613  

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.

Significant transfers between Level I, Level II and Level III

There have been no significant transfers between Level I, II and III for financial assets and financial liabilities recorded at fair value on a recurring basis during the six-month period ended June 30, 2019.

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,
2019
   

Acquisitions

through

business

combinations

   

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

    June 30, 2019    

Total unrealized gains

and losses for the period

recorded in the P&L for

instruments held at June

30, 2019 ³

 

Financial assets carried at fair value available-for-sale investments

                             

Shares

    241       -       -       (6     10       (79     2       1       -       -       -       170       -  

Debt securities

    1,242       -       1       25       151       (271     (42     5       -       19       (117     1,014       -  

Money markets and other short-term instruments

    -       -       -       -       1,051       (723     -       (4     -       125       -       449       -  

Other investments at fair value

    493       -       (55     (11     92       (13     (1     2       -       -       -       507       -  
      1,976       -       (54     8       1,304       (1,086     (42     5       -       144       (117     2,140       -  
     

Fair value through profit or loss

                             

Shares

    1,226       -       40       -       195       (11     -       -       -       -       -       1,450       40  

Debt securities

    17       -       -       -       1       (12     -       -       -       -       -       5       -  

Other investments at fair value

    1,376       -       28       -       235       (111     -       4       -       53       (21     1,564       32  

Investments for account of policyholders

    1,871       -       25       -       206       (310     -       2       -       -       -       1,794       64  

Derivatives

    35       -       33       -       35       (33     -       -       -       -       -       70       34  
      4,525       -       127       -       672       (478     -       6       -       53       (21     4,884       169  
     

Financial liabilities carried at fair value

                             

Investment contracts for account of policyholders

    206       -       8       -       2       (23     -       -       -       -       -       193       (8

Derivatives

    2,489       -       662       -       -       (14     -       (1     -       -       -       3,136       (171
      2,695       -       669       -       2       (38     -       -       -       -       -       3,329       (179

 

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Condensed consolidated interim financial statements 1H 2019 Results

 

 

 

                           
EUR millions  

January 1,

2018

   

Acquisitions

through

business

combinations

   

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,

2018

   

Total unrealized gains

and losses for the period

recorded in the P&L for
instruments held at

December 31, 2018 ³

 

Financial assets carried at fair value available-for-sale investments

                             

Shares

    288       -       21       (12     9       (77     -       10       2       -       -       241       -  

Debt securities

    1,447       -       26       2       494       (76     (452     51       1       58       (310     1,242       -  

Other investments at fair value

    583       -       (83     (38     125       (102     (21     25       3       -       -       493       -  
      2,318       -       (36     (48     629       (255     (473     87       6       58       (310     1,976       -  
     

Fair value through profit or loss

                             

Shares

    604       -       104       -       541       (61     1       1       36       -       -       1,226       105  

Debt securities

    4       -       (25     -       37       -       -       -       -       -       -       17       (24

Other investments at fair value

    1,255       -       11       -       332       (307     -       64       -       94       (72     1,376       3  

Investments for account of policyholders

    1,784       130       76       -       537       (660     -       3       -       -       -       1,871       35  

Derivatives

    57       -       57       -       -       (80     -       -       -       -       -       35       59  
      3,705       130       223       -       1,447           (1,108     -       69       36       94       (72     4,525       177  
     

Financial liabilities carried at fair value

                             

Investment contracts for account of policyholders

    219       -       (10     -       7       (14     -       4       -       -       -       206       -  

Derivatives

    1,845       -       613       -       -       -       -       31       -       -       -       2,489       613  
      2,064       -       604       -       7       (14     -       35       -       -       -       2,695       614  

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.

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

June 30, 2019

    

Total estimated

fair value June

30, 2019

    

Carrying amount

December 31,

2018

    

Total estimated

fair value

December 31,

2018

 

Assets

               

Mortgage loans - held at amortized cost

     37,642         40,844         36,639         39,758   

Private loans - held at amortized cost

     4,188         4,838         4,103         4,494   

Other loans - held at amortized cost

     2,366         2,366         2,310         2,310   
     

Liabilities

               

Subordinated borrowings - held at amortized cost

     1,392         1,542         1,389         1,355   

Trust pass-through securities - held at amortized cost

     136         141         133         128   

Borrowings – held at amortized cost

     8,964         9,182         11,525         11,885   

Investment contracts - held at amortized cost

     17,877         18,120         17,825         18,028   

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.

 

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12. Share capital

 

     
               
EUR millions    Jun. 30, 2019             Dec. 31, 2018  
     

Share capital - par value

     322       322  

Share premium

     7,347       7,487  

Total share capital

     7,669       7,808  
     

Share capital - par value

        

Balance at January 1

     322       322  

Dividend

     -       -  

Balance

     322       322  
     

Share premium

        

Balance at January 1

     7,487       7,731  

Share dividend

     (139     (244

Balance

     7,347       7,487  

 

     
           
EUR millions    First half
2019
      First half
2018
   

Earnings per share (EUR per share)

      

Basic earnings per common share

     0.28       0.21  

Basic earnings per common share B

     0.01       0.01  

Diluted earnings per common share

     0.28       0.21  

Diluted earnings per common share B

     0.01       0.01  
   

Earnings per share calculation

      

Net income / (loss) attributable to owners of Aegon N.V.

     618       491  

Coupons on other equity instruments

     (48     (57

Earnings attributable to common shares and common shares B

     570       434  
   

Earnings attributable to common shareholders

     566       431  

Earnings attributable to common shareholders B

     4       3  
   

Weighted average number of common shares outstanding (in millions)

     2,036       2,032  

Weighted average number of common shares B outstanding (in millions)

     572       570  

Final dividend 2018

It was decided at the Annual General Meeting of Shareholders on May 17, 2019, to pay a final dividend for the year 2018 of EUR 0.15 per common share. After taking into account the 2018 interim dividend of EUR 0.14 per common share, this resulted in a total 2018 dividend of EUR 0.29 per common share. Final dividend for the year and total 2018 dividend per common share B amounted to 1/40th of the dividend paid on common shares.

The final dividend for 2018 was paid in cash or stock at the election of the shareholder. The value of the stock dividend and the cash dividend are approximately equal in value and 45% of shareholders elected to receive the stock dividend. Those who elected to receive a stock dividend received one Aegon common share for every 28 common shares held. The stock fraction was based on Aegon’s average share price as quoted on Euronext Amsterdam, using the high and low of each of the five trading days from June 10, 2019 up to and including June 14, 2019. The average share price calculated on this basis amounted to EUR 4.2396. The dividend was paid as of June 21, 2019.

13. Insurance contracts

The June 30, 2019 insurance contracts liabilities increased as a result of a LAT deficit in Aegon the Netherlands. The positive LAT headroom of Aegon the Netherlands at the end of 2018 of EUR 0.6 billion was negatively impacted by adverse credit spread movements (widening mortgage spreads, tightened liquidity premium) of EUR 1.1 billion and the impact of lower interest rate of EUR 0.8 billion.

 

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The LAT deficit of EUR 1.4 billion as per June 30, 2019 is recorded in the income statement. The LAT deficit was partly recorded as an impairment of DPAC and VOBA balances (EUR 76 million) (refer to note 8 “Impairment charges/(reversals)”) and for the remainder by increasing the insurance liability by EUR 1.3 billion.

Due to the positive LAT headroom of Aegon the Netherlands at the end of 2018, changes in the LAT margin triggered by up or down interest shocks could be absorbed by the revaluation reserves on available for sale assets (shadow accounting). However, due to the current negative headroom position, changes in the LAT margin of Aegon the Netherlands, triggered by up or down interest shocks, will now be directly recognized in the income statement.

As a result, the IFRS P&L of Aegon the Netherlands is now less sensitive for interest movements as the interest risk was, and is, economically hedged using derivatives largely offsetting the impact of a changed LAT margin. Please refer to the table below for updated Group sensitivities on interest rate risk.

 

EUR millions    Jun 30, 2019     Dec 31, 2018  
      On shareholders’          On shareholders’       
Sensitivities - estimated approximate effects    equity    On net income     equity    On net income  
       

Shift up 100 basis points - parallel movement of yield curve

   (3.202)      (191   (3.874)      (563

Shift down 100 basis points - parallel movement of yield curve

   3.080       205     3.067       843  

Furthermore, as a result of the current negative LAT headroom position, future results will become more volatile due to changes in credit spreads as these are not hedged. Please find below the estimated sensitivities on shareholders’ equity and on net income of Aegon the Netherlands, for up and down shocks for credit spreads, mortgage spreads for the bond and mortgage portfolio and liquidity premium shocks for general account insurance liabilities.

 

EUR millions    Jun 30, 2019  
      On shareholders’        
Sensitivities - estimated approximate effects    equity     On net income  
   

Shift up 50 basis points - NL bond credit spreads

     (992     -  

Shift down 50 basis points - NL bond credit spreads

     1.216       -  

Shift up 50 basis points - NL mortgage spreads

     (684     (684

Shift down 50 basis points - NL mortgage spreads

     787       787  

Shift up 5 basis points - liquidity premium

     140       140  

Shift down 5 basis points - liquidity premium

     (177     (177

14. Insurance contracts for account of policyholder

Insurance contracts for account of policyholders increased by EUR 11.3 billion to EUR 128.4 billion compared to December 31, 2018 mainly due to positive equity market movements and declining interest rates.

15. Investment contracts for account of policyholders

Investment contracts for account of policyholders increased by EUR 7.7 billion to EUR 87.8 billion compared to December 31, 2018 mainly due to positive equity market movements and declining interest rates.

 

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16. Borrowings

 

     
           
EUR millions    Jun. 30, 2019                          Dec. 31, 2018
     

Capital funding

     1,778       1,774  

Operational funding

     7,722       10,287  

Total borrowings

     9,500       12,061  

Included in borrowings is EUR 537 million relating to borrowings measured at fair value (December 31, 2018: EUR 536 million). During the first six months of 2019, the operational funding decreased by EUR 2.6 billion mainly due to the early redemption of a USD 1.54 billion Variable Funding Surplus Note (EUR 1.4 billion), following a restructuring of this financing transaction in the US. In addition, a further decrease was driven by the redemption of ‘SAECURE 14’ of EUR 0.9 billion and the paydown of FHLB advances of EUR 1.3 billion. This was partly offset by an increase in other mortgage loan funding of EUR 0.5 billion and the issuance of EUR 500 million senior non-preferred notes with a coupon of 0.625%.

17. Capital management and solvency

Aegon’s capital consists of 3 Tiers as an indication of its quality, with Tier 1 capital ranking highest. The available own funds number reflects Aegon’s interpretation of Solvency II requirements which is subject to supervisory review.

The table below provides the composition of Aegon’s available own funds across Tiers:

 

     

June 30, 2019
Available

own funds

    

December 31, 2018

Available

own funds

 
   

Tier 1 - unrestricted

     11.916        12.204  

Tier 1 - restricted

     3.493        3.406  

Tier 2

     1.528        1.487  

Tier 3

     743        505  

Total available own funds

     17.679        17.602  

Tier 1 unrestricted capital decreased compared to December 31, 2018. The decrease in Tier 1 unrestricted capital amounted to EUR 288 million, and is mainly driven by the narrowing of the European Insurance and Occupational Pensions Authority (EIOPA) VA from 24 bps to 9 bps, widening of credit spreads on mortgages and lowering of the UFR rates, partly offset by the positive expected return on Aegon inforce insurance portfolio and declining interest rates. The restricted Tier 1 capital has increased by EUR 87 million, mainly due to the issuance of EUR 500 million Restricted Tier 1 perpetual contingent convertible securities, partly offset by the redemption of the USD 500 million perpetual capital securities.

Tier 2 capital increased by EUR 41 million as a result of increased market value of Tier 2 instruments.

Tier 3 capital as of June 30, 2019 is comprised of deferred tax assets balances related to Solvency II entities. The increase of EUR 238 million is mainly driven by Aegon the Netherlands as a result of declined interest rates which increase liabilities, the remaining increase is contributed by Aegon US non-regulated entities.

 

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IFRS-EU equity compared to Solvency II own funds

 

 

        
EUR millions   

June 30, 2019

 

    

                December 31, 2018

 

 
   

Shareholders’ Equity

     21.481         19.518   

IFRS adjustments for Other Equity Instruments and non controlling interests

     3.406         3.342   

Group Equity

     24.887         22.860   

Solvency II revaluations

     (8.859)        (6.911)  

Transferability restrictions 1

     (2.031)        (1.884)  

Excess of Assets over Liabilities

     13.997         14.065   

Availability adjustments

     4.486         4.326   

Fungibility restrictions 2

     (804)        (789)  

Available own funds

     17.679         17.602   

1 This includes the transferability restriction related to the new RBC CAL conversion methodology.

2 Amongst others, this contains the exclusion of Aegon Bank.

The Solvency II revaluations and reclassifications of EUR 8,859 million negative (2018: EUR 6,911 million negative) stem from the difference in valuation and presentation between IFRS-EU and Solvency II frameworks. The change in Solvency II revaluations per June 30, 2019 compared to December 31, 2018 is mainly driven by lower interest rates and tightening credit spreads during 1H 2019, increasing the revaluation reserves in Aegon US.

The Solvency II revaluations can be grouped into four categories:

Items that are not recognized under Solvency II. The most relevant examples of this category for Aegon include Goodwill, DPAC and other intangible assets (EUR 1,886 million negative, December 31, 2018: EUR 2,024 million negative);

Items that have a different valuation treatment between IFRS-EU and Solvency II. Solvency II is a market consistent framework hence all assets and liabilities are to be presented at fair value while IFRS-EU also includes other valuation treatments in addition to fair value. The most relevant examples of this category for Aegon Group include Loans and Mortgages, Reinsurance Recoverables, Deferred tax assets balances and Technical provisions. The revaluation difference stemming from this category amounted to EUR 2,073 million positive (2018: EUR 2,471 million positive) compared to the IFRS-EU Statement of Financial Position;

The Net Asset Value of subsidiaries that are included under the Deduction & Aggregation method (on provisional equivalence or Standard Formula basis) in the Group Solvency II results. The revaluation difference stemming from this category amounted to EUR 5,678 million negative (2018: EUR 4,095 million negative) compared to the IFRS-EU Statement of Financial Position;

Reclassification of subordinated liabilities of EUR 3,368 million negative (2018: EUR 3,262 million negative). The movement of subordinated liabilities mainly stem from the redemption of perpetual capital securities of USD 500 million, and the issuance of EUR 500 million Restricted Tier 1 perpetual contingent convertible securities during the first half of 2019.

The increase in availability adjustments compared to December 31, 2018 is mainly driven by the movement of treasury shares, which has decreased by EUR 191 million due to the final dividend payout over 2018 of stock dividend.

18. Commitments and contingencies

In March 2019, affiliates of Transamerica Corporation entered into a series of agreements with LTCG, an independent third party administrator, to transfer the administration and claims management of its long term care insurance business line. The transaction enables Transamerica to accelerate the enhancement of its digital capabilities and the modernization of its long term care insurance platform. Services are expected to commence in the second half of 2019. LTCG will provide comprehensive third party administration services for Transamerica’s long term care insurance product line including new business, policyholder service, claims processing and care management. The contract is a multi-year contract and the agreement also contains a termination clause in which case Transamerica- subject to certain limitations – agrees to compensate LTCG, on a specified schedule, for early termination.

There have been no other material changes in commitments and contingencies as reported in the 2018 consolidated financial statements.

 

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19. Acquisitions/Divestments

Aegon Czech Republic and Slovakia

On January 8, 2019, Aegon completed the sale of its businesses in Czech Republic and Slovakia. The businesses consisted mainly of unit linked life insurance coverage, term life products and pension reserves. The proceeds of the sale amount to EUR 155 million and the book gain amounts to approximately EUR 70 million, which were reflected in other income. As a consequence of the transaction, annual income before tax and underlying earnings before tax have decreased. In 2018, the underlying earnings before tax of the combined operations amounted to EUR 17 million.

Aegon Japan

On May 17, 2019, Aegon announced an agreement to sell its 50% stake in the variable annuity joint ventures in Japan for total cash proceeds of approximately EUR 130 million (JPY 16 billion). The divestment will not have a material impact on Aegon’s capital position and is expected to lead to an IFRS gain of approximately EUR 50 million. This divestment has no material impact on underlying earnings before tax going forward. Closing of the transaction is subject to normal regulatory approvals for transactions of this nature and is expected to be completed by the end of 2019.

20. Post reporting date events

On July 9, 2019, Aegon closed a transaction under the Dutch SAECURE program to sell Class A mortgage backed securities (RMBS). ‘SAECURE 18 NHG’ consists of EUR 512 million of class A notes with an expected weighted average life of 4.8 years and a coupon of 3 month Euribor plus 40bps.

Between July 1, 2019 and August 2, 2019, Aegon has completed the share buyback program to neutralize the dilutive effect of the 2018 final dividend paid in shares, and repurchased a total of 32,873,805 common shares, at an average price of EUR 4.52 per share.

 

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Management statement

The interim report for the six months period ended June 30, 2019, consists of the condensed consolidated interim financial statements, the first half 2019 results release and this responsibility statement by the Company’s Executive Board. The information in this interim report is unaudited.

The Executive Board is responsible for preparing the condensed consolidated interim financial statements in accordance with Dutch law and IAS 34, Interim Financial Reporting, as adopted by the European Union.

The Executive Board declares that, to the best of its knowledge, the condensed consolidated interim financial statements which have been prepared in accordance with lAS 34, Interim Financial Reporting, as adopted by the European Union, give a true and fair view of the assets, liabilities, financial condition and profit or loss of Aegon N.V. and the undertakings included in the consolidation as a whole and that the first half 2019 results release includes a fair review of the information required pursuant to section 5:2Sd, subsections 8 and 9 of the Dutch Act on Financial Supervision (Wet op het financieel toezicht).

The Hague, the Netherlands, August 14, 2019

Alexander R. Wynaendts

Chairman of the Executive Board and CEO

Matthew J. Rider

Member of the Executive Board and CFO

 

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Review report

To: The Supervisory Board and the Executive Board of Aegon N.V.

Introduction

We have reviewed the accompanying condensed consolidated interim financial information for the six-month period ended June 30, 2019 of Aegon N.V., the Hague, which comprises the condensed consolidated statement of financial position as at June 30, 2019, 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 for the period then ended and the selected explanatory notes. The Executive Board is responsible for the preparation and presentation of this (condensed) interim financial information in accordance with IAS 34, ‘Interim Financial Reporting’ as adopted by the European Union. Our responsibility is to express a conclusion on this interim financial information 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 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 information for the six-month period ended June 30, 2019 is not prepared, in all material respects, in accordance with IAS 34, ‘Interim Financial Reporting’ as adopted by the European Union.

Amsterdam, August 14, 2019

PricewaterhouseCoopers Accountants N.V.

Original has been signed by G.J. Heuvelink RA

 

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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 Aegon’s 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 Aegon’s Condensed Consolidated Interim Financial Statements. Aegon believes that these non-IFRS-EU measures, together with the IFRS-EU information, provide meaningful supplemental information about the underlying operating results of Aegon’s 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, could, 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:

 

Changes in general economic and/or governmental conditions, particularly in the United States, the Netherlands and the United Kingdom;

 

Changes in the performance of financial markets, including emerging markets, such as with regard to:

  -

The frequency and severity of defaults by issuers in Aegon’s fixed income investment portfolios;

 

  -

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

  -

The effects of declining creditworthiness of certain public sector securities and the resulting decline in the value of government exposure that Aegon holds;

 

Changes in the performance of Aegon’s investment portfolio and decline in ratings of Aegon’s counterparties;

 

Consequences of an actual or potential break-up of the European monetary union in whole or in part;

 

Consequences of the anticipated exit of the United Kingdom from the European Union and potential consequences of other European Union countries leaving the European Union;

 

The frequency and severity of insured loss events;

 

Changes affecting longevity, mortality, morbidity, persistence and other factors that may impact the profitability of Aegon’s insurance products;

 

Reinsurers to whom Aegon has ceded significant underwriting risks may fail to meet their obligations;

 

Changes affecting interest rate levels and continuing low or rapidly changing interest rate levels;

 

Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates;

 

Changes in the availability of, and costs associated with, liquidity sources such as bank and capital markets funding, as well as conditions in the credit markets in general such as changes in borrower and counterparty creditworthiness;

 

Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets;

 

Changes in laws and regulations, particularly those affecting Aegon’s operations’ ability to hire and retain key personnel, taxation of Aegon companies, the products Aegon sells, and the attractiveness of certain products to its consumers;

 

Regulatory changes relating to the pensions, investment, and insurance industries in the jurisdictions in which Aegon operates;

 

Standard setting initiatives of supranational standard setting bodies such as the Financial Stability Board and the International Association of Insurance Supervisors or changes to such standards that may have an impact on regional (such as EU), national or US federal or state level financial regulation or the application thereof to Aegon, including the designation of Aegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII);

 

Changes in 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;

 

Acts of God, acts of terrorism, acts of war and pandemics;

 

Changes in the policies of central banks and/or governments;

 

Lowering of one or more of Aegon’s debt ratings issued by recognized rating organizations and the adverse impact such action may have on Aegon’s ability to raise capital and on its liquidity and financial condition;

 

Lowering of one or more of insurer financial strength ratings of Aegon’s insurance subsidiaries and the adverse impact such action may have on the premium writings, policy retention, profitability and liquidity of its insurance subsidiaries;

 

The effect of the European Union’s Solvency II requirements and other regulations in other jurisdictions affecting the capital Aegon is required to maintain;

 

Litigation or regulatory action that could require Aegon to pay significant damages or change the way Aegon does business;

 

As Aegon’s operations support complex transactions and are highly dependent on the proper functioning of information technology, operational risks such as system disruptions or failures, security or data privacy breaches, cyberattacks, human error, failure to safeguard personally identifiable information, changes in operational practices or inadequate controls including with respect to third parties with which we do business may disrupt Aegon’s business, damage its reputation and adversely affect its results of operations, financial condition and cash flows;

 

Customer responsiveness to both new products and distribution channels;

 

Competitive, legal, regulatory, or tax changes that affect profitability, the distribution cost of or demand for Aegon’s products;

 

Changes in accounting regulations and policies or a change by Aegon in applying such regulations and policies, voluntarily or otherwise, which may affect Aegon’s reported results, shareholders’ equity or regulatory capital adequacy levels;

 

Aegon’s projected results are highly sensitive to complex mathematical models of financial markets, mortality, longevity, and other dynamic systems subject to shocks and unpredictable volatility. Should assumptions to these models later prove incorrect, or should errors in those models escape the controls in place to detect them, future performance will vary from projected results;

 

The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Aegon’s ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions;

 

Catastrophic events, either manmade or by nature, could result in material losses and significantly interrupt Aegon’s business; and

 

Aegon’s failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving and excess cash and leverage ratio management initiatives.

This document contains information that qualifies, or may qualify, as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation (596/2014). 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 Aegon’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

 

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Corporate and shareholder information

Headquarters

Aegon N.V.

P.O. Box 85

2501 CB The Hague

The Netherlands

+ 31 (0) 70 344 32 10

aegon.com

Group Corporate Communications & Investor Relations

Media relations

+ 31 (0) 70 344 8344

gcc@aegon.com

Investor relations

+ 31 (0) 70 344 83 05

or 877 548 96 68 - toll free, USA only

ir@aegon.com

 

Publication dates results   
February 13, 2020    2H 2019 Results
August 13, 2020    1H 2020 Results

 

 

About Aegon

Aegon’s roots go back 175 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 world’s leading financial services organizations, providing life insurance, pensions and asset management. Aegon’s purpose is to help people achieve a lifetime of financial security. More information: aegon.com .

 

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