Aegon N.V. (Amsterdam:AGN) (NYSE:AEG):
Improved operating performance; dividend well covered by Free
Cash Flows
- Net loss of EUR 147 million in the second half of 2020, mainly
as a result of an increase of the value of liabilities in the
Netherlands due to tightening credit spreads, reversing the
movement seen in the first half of the year
- Underlying earnings before tax increase by 7% to EUR 1,029
million driven by the benefit from higher equity markets in the
United States and Asset Management, and expense savings. COVID-19
had a manageable impact, as it led to both adverse mortality and
favorable morbidity in the US, which broadly offset each other
- Cash Capital at Holding is within the operating range at EUR
1.1 billion; capital ratios of three main units are above their
respective operating levels
- Proposed final dividend 2020 of EUR 0.06, bringing the
full-year dividend to EUR 0.12 per common share or EUR 247million.
The proposed dividend is well covered by the full-year Free Cash
Flows of EUR 530 million
- Gross financial leverage reduces to EUR 6.0 billion following
repayment of USD 500 million senior debt
Statement of Lard Friese, CEO "The second half of 2020
continued to be challenging for our customers, colleagues, and the
communities in which we operate. I am proud of the continued
commitment of our employees to provide support and uninterrupted
service to our customers and business partners in the midst of the
pandemic.
In these circumstances, we have worked on our plans to transform
Aegon and have laid out a clear road map to improve our
performance. In the second half of the year, we took the first
concrete steps to deliver on these plans. We sharpened our
strategic focus with the announced divestments of our operations in
Central & Eastern Europe, restructured our businesses in India,
Hong Kong and Singapore, decided to cease funding of GoBear, and
delivered 260 initiatives relating to our performance improvement
plan. As a result, we have reduced the addressable expense base by
more than EUR 75 million in 2020 and remain on track to deliver
half of our 2023 target of EUR 400 million savings by the end of
2021.
By proactively managing our balance sheet, we have ensured that
the capital ratios of our three main units ended the year above
their respective operating levels. Examples of actions we have
taken to strengthen our balance sheet range from the reinsurance of
disability risk in our Dutch non-life business to the sale of the
Transamerica Pyramid. We have also taken a first step towards
reaching our deleveraging target by repaying USD 500 million senior
debt. Last year’s rebasing of the dividend ensures that it is
sustainable and well covered by the Free Cash Flows that we
generate, even in reasonable stress scenarios. We will propose a
final dividend for 2020 of EUR 0.06 per common share at our 2021
Annual General Meeting, bringing the full-year dividend to EUR
0.12. Our aim is to grow the dividend per share from here in line
with recurring Free Cash Flows to around EUR 0.25 over 2023.
We enter 2021 with momentum, but conscious of the fact that
there is a lot of work to do to drive further operating
improvements. We are establishing dedicated teams to manage our
Financial Assets and will continuously look for ways to maximize
their value. To further reduce our risk profile, we are reviewing
our US variable annuity hedging program. We will share the outcomes
once the required foundational work is completed. In our Strategic
Assets, we will continue to invest in products and services for our
customers to drive profitable growth. We will maintain a strong
balance sheet to deal with potential market volatility and deliver
on our dividend growth objectives. We are fully focused on
delivering the plans outlined at our recent Capital Markets Day to
turn Aegon into a more enduring, high‑performance company.”
Note: All comparisons in this text are against 2H 2019, unless
stated otherwise
Financial overview
unaudited
Second half
Second half
First half
Full Year
Full Year
EUR millions
Notes
2020
2019*
%
2020
%
2020
2019*
%
Underlying earnings before tax
1
Americas
556
548
1
264
111
820
1,125
(27)
The Netherlands
344
320
7
321
7
665
648
3
United Kingdom
62
70
(11)
81
(23)
144
139
3
International
81
73
10
75
7
156
144
8
Asset Management
111
79
41
71
57
182
139
31
Holding and other activities
(125)
(129)
4
(112)
(11)
(237)
(227)
(4)
Underlying earnings before tax
1,029
961
7
700
47
1,729
1,969
(12)
Fair value items
(1,150)
168
n.m.
680
n.m.
(470)
(226)
(108)
Realized gains / (losses) on
investments
135
131
3
16
n.m.
150
405
(63)
Net impairments
(43)
17
n.m.
(194)
78
(237)
(22)
n.m.
Other income / (charges)
(168)
(188)
11
(1,071)
84
(1,239)
(281)
n.m.
Run-off businesses
25
15
70
4
n.m.
29
23
27
Income before tax
(171)
1,103
n.m.
135
n.m.
(37)
1,868
n.m.
Income tax
24
(195)
n.m.
68
(64)
92
(343)
n.m.
Net income / (loss)
(147)
908
n.m.
202
n.m.
55
1,525
(96)
Net income / (loss) attributable
to:
Owners of Aegon N.V.
(157)
908
n.m.
202
n.m.
44
1,524
(97)
Non-controlling interests
10
-
n.m.
1
n.m.
11
-
n.m.
Net underlying earnings
847
816
4
589
44
1,437
1,648
(13)
Return on equity
4
10.6%
9.5%
12
6.5%
63
8.5%
9.6%
(11)
Commissions and expenses
2,980
3,429
(13)
3,229
(8)
6,209
6,627
(6)
of which operating expenses
8
1,866
2,015
(7)
1,985
(6)
3,852
3,928
(2)
of which addressable operating
expenses
1,485
1,686
(12)
1,639
(9)
3,123
3,297
(5)
Addressable operating expense in constant
currency
1,485
1,663
(11)
1,603
(7)
3,123
3,263
(4)
Gross deposits (on and off
balance)
9
Americas
15,335
18,787
(18)
22,485
(32)
37,820
40,406
(6)
The Netherlands
7,628
7,086
8
7,580
1
15,208
13,207
15
United Kingdom
1,304
6,147
(79)
7,295
(82)
8,599
9,749
(12)
International
157
176
(11)
163
(4)
320
358
(11)
Asset Management
70,333
47,459
48
65,043
8
135,375
80,939
67
Total gross deposits
94,756
79,655
19
102,566
(8)
197,322
144,660
36
Net deposits (on and off
balance)
9
Americas
(15,605)
(25,900)
40
(2,333)
n.m.
(17,938)
(29,371)
39
The Netherlands
1,067
696
53
691
54
1,758
1,445
22
United Kingdom
(5,641)
(722)
n.m.
2,054
n.m.
(3,587)
(3,487)
(3)
International
73
(42)
n.m.
82
(11)
155
20
n.m.
Asset Management
5,517
3,600
53
395
n.m.
5,912
6,841
(14)
Total net deposits excluding run-off
businesses
(14,589)
(22,367)
35
889
n.m.
(13,700)
(24,551)
44
Run-off businesses
(126)
(112)
(12)
63
n.m.
(63)
(578)
89
Total net deposits / (outflows)
(14,715)
(22,479)
35
952
n.m.
(13,763)
(25,130)
45
New life sales
2, 9
Single premiums
503
975
(48)
603
(17)
1,106
1,679
(34)
Recurring premiums annualized
301
358
(16)
319
(6)
620
693
(10)
Total recurring plus 1/10
single
352
456
(23)
379
(7)
731
861
(15)
New life sales
2, 9
Americas
195
219
(11)
185
5
380
419
(9)
The Netherlands
44
84
(47)
47
(7)
92
136
(33)
United Kingdom
14
20
(30)
19
(27)
33
41
(19)
International
99
133
(25)
128
(22)
227
264
(14)
Total recurring plus 1/10
single
352
456
(23)
379
(7)
731
861
(15)
New premium production accident and health
insurance
62
113
(45)
124
(50)
186
230
(19)
New premium production property &
casualty insurance
67
64
4
59
12
126
129
(2)
Market consistent value of new
business
3
155
194
(20)
107
44
262
464
(77)
* Amounts have been restated to reflect the voluntary change in
accounting policies related to deferred cost of reinsurance (DCoR)
adopted by Aegon effective January 1, 2020.
Strategic highlights
Aegon is taking significant steps to transform the company in
order to improve its performance and create value for its customers
and shareholders. To ensure delivery against these objectives, a
rigorous and granular operating plan has been developed across the
Group. Aegon focuses on three core markets (the United States, the
Netherlands, and the United Kingdom), three growth markets (Spain
& Portugal, China, and Brazil) and one global asset manager.
Aegon’s businesses in its core markets have been separated into
Financial Assets and Strategic Assets. The aim is to release
capital from Financial Assets and from businesses outside its core
markets, and re-allocate capital to growth opportunities in the
Strategic Assets, growth markets and Asset Management. Throughout
this transformation, the company aims to maintain a solid capital
position in the business units and at the Holding. Through
proactive risk management actions, Aegon is improving its risk
profile and reducing the volatility of its capital ratios.
Operational improvement plan In the second half of 2020,
Aegon developed an ambitious plan comprised of more than 1,100
detailed initiatives designed to improve the operating performance
of its business by reducing costs, expanding margins and growing
profitably. The program has had a good start, with 260 initiatives
delivered at the end of 2020, of which the majority relates to
expense savings. It generally takes more time to execute growth
initiatives, as significant investments need to be made to improve
customer service, enhance the user experience and develop new
products. The company will keep a good pace in executing on these
initiatives.
Strategic Assets Strategic Assets are businesses with a
greater potential for an attractive return on capital, where Aegon
is well positioned for growth. In these businesses, Aegon will
invest in profitable growth by expanding its customer base and
increasing its margins.
In the US Individual Solutions business, Transamerica realized
sales growth in Term Life and Index Universal Life, two of the main
products that it will focus on going forward, both compared to the
same period last year and throughout each quarter in 2020.
Transamerica’s market share gain in Index Universal Life has been
advanced by adding a funeral concierge benefit at no direct cost
for qualifying life insurance policyholders. Transamerica developed
this new benefit, to provide grieving beneficiaries valuable
resources to help plan the funeral of the insured person and other
end-of-life services. The addition of this benefit and the growth
of World Financial Group contributed to an 11% increase in sales of
Index Universal Life, Transamerica’s flagship life insurance
product, to USD 105 million, compared to the second half of
2019.
In the US Workplace Solutions business, Transamerica aims to
remain a top-5 player in new mid-market sales. Momentum has built
in the mid-market with written sales of USD 2.2 billion in the
second half of 2020. This represented a decrease of only 4%
compared with the exceptionally high sales in the second half of
2019, and an increase of 49% compared to the first half of 2020.
Furthermore, Transamerica increased the participation of ancillary
services, which supports its aim to expand its margins.
In the Netherlands, Aegon aims to maintain its leading positions
in defined contribution pensions and mortgage origination. In the
second half of 2020, Aegon the Netherlands originated EUR 5.5
billion of residential mortgages. This brings the total origination
volume for 2020 to EUR 11 billion. Of the total mortgages
originated in 2020, 66% were fee-based mortgages originated for
third-party investors. Aegon is the largest third-party mortgage
originator in the Netherlands, benefiting from its scale, high
service levels to intermediaries and customers, and diversified
funding. Net deposits for defined contribution PPI products
increased by over 50% to EUR 481 million in the second half of
2020. Aegon’s PPI offering is low-cost thanks to the scale of its
administration subsidiary, TKP, which services 4 million pension
participants in the Netherlands.
In the United Kingdom, Aegon’s aim is to achieve sales growth
and positive net deposits in both the Retail and Workplace
channels. In the second half of 2020, net deposits in Workplace
remained positive at GBP 0.1 billion. The pipeline for new contract
wins remains healthy. For Retail, net outflows amounted to GBP 0.7
billion, which is a GBP 0.3 billion improvement compared to the
second half of 2019 as a result of better retention rates. By
investing in front-end portals and service for advisers and
customers, Aegon aims to further invest in the Retail channel to
increase momentum. These investments will take place in the coming
18 months and are expected to lead to an improvement in net
deposits over time.
Financial Assets Financial Assets are blocks of business
which generally have closed for new sales, and which are capital
intensive with relatively low returns on capital employed. Aegon is
establishing dedicated teams to manage these businesses, which are
responsible for maximizing their value through disciplined risk
management and capital management actions.
In the second half of 2020, Transamerica continued its
successful track record of dynamically hedging the in-force block
of variable annuity business with guaranteed minimum withdrawal
benefits (GMWB) for equity and interest risk, with a hedge
effectiveness of 98%. The company is reviewing the potential to
also move to a full dynamic hedge program for its legacy block of
variable annuities and expects to provide an update on this later
in 2021.
After successfully completing 90% of the USD 1.1 billion rate
increase program for its Long-Term Care block of business initiated
in 2016, Transamerica launched a new rate increase program which
includes the remaining portion of the 2016 program. Over the coming
years, Transamerica will seek to obtain approvals for rate
increases with a combined value of USD 300 million. This new
program provides additional options for policyholders in some
cases. In the second half of 2020, claims experience developed
favorably for the Long-Term Care business as a result of fewer new
claims and increased claims terminations, due to the impact of the
COVID-19 pandemic. This led to an actual to expected claims
experience of 71% for the second half of 2020.
Aegon’s Dutch Life business took several actions to stabilize
the capital base in order to put it in a position to pay consistent
remittances to the Group. To mitigate volatility caused by the
basis risk between the EIOPA VA reference portfolio and its own
asset portfolio, the Dutch Life business implemented internal model
changes and invested more in corporate bonds. Furthermore, it
decided to lower the factor applied when calculating the
loss-absorbing capacity of deferred taxes (LAC‑DT) from 65% to 45%
to reduce the sensitivity of this factor to economic variances
going forward, and to take into account industry-wide Q&A and
good practices recently published by the Dutch Central Bank.
Additionally, the business implemented a quarterly remittance
policy in the fourth quarter of 2020. To optimize the individual
life and pension business and make its expense base more variable,
Aegon’s Dutch Life business has started to transfer the
administration of these books to IBM and TKP respectively. In
November, an important milestone was reached with the first large
migration of group pension contracts to TKP.
Growth Markets and Asset Management In its Growth
Markets, Aegon will continue to invest in profitable growth.
However, in the second half of 2020 new life sales in Growth
Markets declined by 22% to EUR 92 million compared to the second
half of 2019, as bank distribution in Spain & Portugal was
impacted by the fall-out of the COVID-19 pandemic and sales in
China were down from a record-high level in the second half of
2019. Despite lower sales, the inforce business continued to grow,
as also underscored by higher earnings from these businesses. Going
forward, Aegon will benefit from the expansion of its life and
non-life insurance partnership with Banco Santander following its
acquisition of Banco Popular. The expansion of the joint venture
arrangement, for which Aegon's paid an upfront amount of EUR 187
million, closed in July 2020.
Aegon’s Asset Management business benefits from its link with
the Strategic Assets, as these offer platforms to distribute its
competitive, proprietary investment solutions. The aim is to
increase the share of platform assets under administration that are
managed in-house. Aegon Asset Management’s equity platform has been
selected for a EUR 900 million sub-advisory responsible investment
mandate from Transamerica on December 1, 2020. Furthermore,
Transamerica launched two responsible investment bond mutual funds
in September 2020, for which Aegon Asset Management is the
sub-adviser. This underscores Aegon Asset Management’s strong
capabilities in both implementing ESG strategies and applying
expert credit analysis. These sub-advisory mandates contributed to
an improvement in net deposits from affiliates in the second half
of 2020.
Smaller, niche or sub-scale businesses In small markets
or markets where Aegon has sub-scale or niche positions, capital
will be managed tightly with a bias to exit.
On November 29, 2020, Aegon reached an agreement to sell its
insurance, pension and asset management businesses in Hungary,
Poland, Romania and Turkey for EUR 830 million to Vienna Insurance
Group AG Wiener Versicherung Gruppe (VIG). The proceeds represent a
multiple of 2.6 times the book value on June 30, 2020, and 15 times
net underlying earnings in 2019. Aegon expects the transaction to
close in the second half of 2021.
On October 9, 2020, Aegon announced the sale of Stonebridge, a
UK-based provider of accident insurance products, to Global Premium
Holdings group, part of Embignell group. Total proceeds amount to
approximately GBP 60 million and are equal to one times
Stonebridge's Solvency II Own Funds at year-end 2019. The
transaction is subject to normal regulatory approvals and is
expected to be completed in the first quarter of 2021.
In the fourth quarter of 2020, Aegon decided to restructure its
TLB business as well as its business in India. TLB – the
High-Net-Worth business operating in Hong Kong, Singapore, and
Bermuda – has had a change in its management and has been
rightsized in response to challenging market conditions through
expense reduction initiatives. Moving forward, TLB will increase
the usage of digitization and automation in its business operations
to both increase efficiency and, at the same time, improve customer
service. TLB will also pivot to products that are not only
capital‑light, but will offer an attractive value proposition for
its customers as well. This process began with the recent launch of
TLB’s first index-linked product – Genesis Indexed Universal Life –
in both Bermuda and Singapore. In India, the unprofitable and
sub-scale traditional sales channels were closed, as the company
will focus fully on the digital distribution channel going forward.
The closing of the traditional channel will lead to a headcount
reduction of circa 800 FTE.
In January 2021, Aegon decided together with its joint venture
partner to cease funding of GoBear, a digital financial supermarket
in Southeast Asia. The business is being closed in a controlled
manner, while maintaining optionality to divest all or parts of the
business. The ongoing global pandemic has made the operating
environment very challenging due to weakened demand for financial
products, in particular travel insurance.
Strengthening the balance sheet Aegon aims to continue to
strengthen its balance sheet and is taking proactive management
actions to improve its risk profile and reduce the volatility of
its capital ratios.
At the Capital Markets Day on December 10, 2020, Aegon announced
its plans to significantly reduce its interest rate risk in the US
in order to lessen its dependency on financial markets and improve
its risk profile. 25% of this plan had been executed by the end of
2020, primarily by lengthening the duration of its asset
portfolio.
On October 29, Aegon announced the completion of the sale of the
Pyramid building complex in San Francisco, California, for USD 650
million, while retaining the naming rights. The transaction will
allow for a further diversification of the investment portfolio at
favorable yields, thereby improving the risk profile of the Group.
In addition, the sale further strengthened the company's balance
sheet and led to a statutory capital benefit of USD 0.4
billion.
Effective October 1, 2020, Transamerica completed the legal
entity merger of two of its main life insurance carriers in the
United States. Transamerica Premier Life Insurance Company (TPLIC)
merged into Transamerica Life Insurance Company (TLIC), with TLIC
as the surviving entity. In addition, two of Transamerica’s captive
reinsurance companies merged into TLIC, MLIC Re I, Inc. effective
October 1, 2020, and Pine Falls Re effective December 31, 2020. The
premiums, benefits and guarantees for policyholders will not be
affected by the legal mergers. The mergers not only simplify
Transamerica’s corporate structure, but also make the balance sheet
of the surviving entity more resilient and add cash flow testing
capacity, while there was a small positive upfront benefit to the
US RBC ratio.
In December 2020, Aegon’s Dutch Non-Life business reinsured part
of its disability risk through a 60% quota share agreement with a
panel of reinsurers. The transaction reduced concentration risk at
an attractive cost of capital, and increased its Solvency II ratio
by 49%-points. The Solvency II ratio of Aegon’s Dutch Non-Life
business stood at 176% at the end of 2020.
Financial highlights
Underlying earnings before tax Aegon’s underlying
earnings before tax increased by 7% compared with the second half
of 2019 to EUR 1,029 million. This was mainly driven by the benefit
from higher equity markets in the United States and Asset
Management and expense savings, which were only partly offset by
the weakening of the US dollar against the Euro.
Underlying earnings before tax from the Americas amounted to EUR
556 million in the second half of 2020, an increase of 1% compared
with the same period last year or 6% on a constant currency basis.
This increase reflects higher Variable Annuities earnings, lower
operating expenses, and EUR 91 million better than expected
morbidity experience. These were only partly offset by EUR 83
million adverse mortality experience in the Life business and EUR
35 million other negative one-time items. The favorable morbidity
and adverse mortality experience were both driven by the COVID-19
pandemic.
Aegon’s underlying earnings before tax in the Netherlands
increased by 7% compared with the second half of 2019 to EUR 344
million. This was driven by higher investment income, higher fee
income from the growth of the Service businesses and lower
expenses. Expenses decreased primarily due to the impact of moving
from a defined benefit plan to a defined contribution plan for the
future pension accruals for Aegon’s own employees. Underwriting
results in the Netherlands reduced as a result of higher
reinsurance costs following the longevity reinsurance transaction
in December 2019, and a EUR 14 million provision related to
disability insurance.
Underlying earnings before tax from the United Kingdom decreased
by 11% compared with the second half of 2019 to EUR 62 million.
Higher earnings from the platform business were the result of
growth in the Workplace channel, and lower expenses. These were,
however, offset by lower earnings as a consequence of the gradual
run-off of the traditional pension and unit-linked business, as
well as the impact of the COVID-19 pandemic and market uncertainty
on the sales and profitability of Aegon’s protection and
distribution operations.
Underlying earnings before tax from International amounted to
EUR 81 million in the second half of 2020, an increase of 10%
compared with the prior year period. This was mainly driven by
business growth in Spain & Portugal and China, which was partly
offset by adverse claims experience in TLB, Aegon’s High-Net-Worth
business.
Underlying earnings before tax from Aegon Asset Management were
up by 41% to EUR 111 million in the second half of 2020. Strong
performance of Aegon’s Chinese asset management joint venture –
Aegon Industrial Fund Management Company (AIFMC) – far more than
offset a decrease in earnings from Aegon’s Global Platforms.
Performance fees net of performance-based compensation had a
positive impact of EUR 56 million on the underlying earnings before
tax from AIFMC in the second half of 2020. In addition, management
fees for AIFMC increased as a result of higher asset balances,
following the successful launch of five new funds as well as
inflows into existing funds.
The result from the Holding improved by EUR 4 million compared
with the second half of 2019 to a loss of EUR 125 million,
reflecting lower operating and funding expenses.
Net income The net loss for the period amounts to EUR 147
million compared with a net profit of EUR 908 million in the second
half of last year, mainly due to fair value losses as a result of
an increased value of liabilities in the Netherlands due to
tightening credit spreads.
Fair value items The loss from fair value items amounted to EUR
1,150 million in the second half of 2020.
The loss from fair value items in the Netherlands amounted to
EUR 1,330 million, a reversal of a similar size fair value gain in
the first half of 2020. The main driver was a decrease in the
illiquidity premium, a reflection of credit spread tightening,
leading to a significant increase of the fair value of IFRS
insurance liabilities. This in turn increased the Liability
Adequacy Test deficit.
In the Americas, the gain from fair value items amounted to EUR
256 million. This primarily reflected gains on fair value
investments and unhedged risks, while hedges were effective for the
targeted risks. The loss on hedges without an accounting match was
driven by the macro equity hedge net of reserve movements,
reflecting favorable equity markets in the second half of 2020.
Fair value losses in other units totaled EUR 76 million, driven
by adverse results from equity hedges to protect the solvency
position and fee income in the United Kingdom as a result of the
significant increase in equity markets.
Realized gains on investments Realized gains on investments
amounted to EUR 135 million, reflecting normal trading activity and
portfolio adjustments to lengthen the duration of the investment
portfolio in Aegon International.
Net impairments Net impairments on investments amounted to EUR
43 million. This was primarily caused by impairments on corporate
bonds in the energy and communications sector, which were partly
offset by recoveries on residential mortgage backed securities in
the Americas and the unsecured loan portfolio in the
Netherlands.
Other charges Other charges amounted to EUR 168 million, and
were mainly driven by the Americas. These were largely attributable
to an accrual in relation to the ongoing rehabilitation process of
a reinsurer, and the restructuring of captives. Assumption updates
in the Netherlands resulted in other income, more than offsetting
restructuring costs across the Group, and IFRS 9 / 17 project costs
in the Holding.
Income tax Income tax was a benefit of EUR 24 million, while the
loss before tax was EUR 171 million. The effective tax rate of 14%
is below the nominal tax rate mainly due to the announcement that
the Dutch nominal tax rate will remain at 25% as from 2021,
resulting in a reversal of earlier impacts from the previously
anticipated lowering of the tax rate to 21.7%. This was only partly
offset by the regular benefits from tax credits and non-taxable
income.
Return on equity Return on equity increased by
1.1%-points to 10.6% from a combination of higher net underlying
earnings, lower cost of leverage, and lower shareholders’
equity.
Operating expenses Operating expenses decreased by EUR
149 million compared with the second half of 2019 to EUR 1,866
million, a decrease of 7% or 5% on a constant currency basis. The
decline was mainly driven by a reduction in addressable expenses
resulting from the performance improvement plan. Furthermore,
expenses benefited from lower travel, marketing, and sales
activities due to the impact of the COVID-19 pandemic.
Sales Gross deposits increased by EUR 15 billion compared
with the second half of 2019 to EUR 95 billion, driven by Asset
Management, where external third-party gross inflows rose by EUR 24
billion to EUR 70 billion. This resulted from higher gross inflows
at Aegon’s Chinese asset management joint venture, Aegon Industrial
Fund Management Company (AIFMC), as a result of new fund launches
and inflows into existing AIFMC funds. These were partially offset
by EUR 5 billion lower gross deposits in the United Kingdom, driven
by lower institutional platform deposits, which are low margin and
can be lumpy. Gross deposits for most other channels in the United
Kingdom were broadly in line with the previous period despite
headwinds from the COVID-19 pandemic. Gross deposits in the
Netherlands increased by 8% to EUR 8 billion, driven mainly by
continued momentum at online bank Knab and in defined contribution
pensions. In the Americas, gross deposits decreased by EUR 3
billion to EUR 15 billion due to three large contract
discontinuances in Retirement Plans at the end of 2019 that led to
lower recurring deposits this year.
Net deposits amounted to EUR 15 billion of net outflows for the
second half of 2020. This was the result of EUR 16 billion net
outflows in the Americas, largely attributable to Retirement Plans.
The majority of Retirement Plans outflows were in the large market
driven nearly equally by contract discontinuances and participant
withdrawals. The United Kingdom also showed net outflows of EUR 6
billion driven by the institutional platform, while net deposits in
the Workplace channel were positive and outflows in the Retail
channel improved. Asset Management saw positive net deposits of EUR
6 billion, driven by AIFMC and net deposits on its Fixed Income
Platform. The Netherlands had EUR 1 billion net deposits, driven by
growth in its online bank Knab and its defined contribution pension
business.
New life sales declined by 23% compared with the second half of
2019 to EUR 352 million. In the Americas, this was mainly driven by
lower Whole Life sales, as a result of the decision to make product
changes and sunset certain legacy products. This more than offset
positive impact from Term Life pricing actions and increased
Indexed Universal Life sales. New life sales in International and
the Netherlands were down due to exceptionally high sales in the
second half of 2019.
New premium production for Accident & Health insurance
decreased by 45% to EUR 62 million, as the prior year period
included a single large disability contract in the United States.
The remaining decline results largely from the decision to exit the
individual Medicare supplement market in the United States.
Market consistent value of new business Market consistent
value of new business (MCVNB) decreased by 20% compared with the
second half of 2019 to EUR 155 million, largely caused by lower
volumes in the United Kingdom, partly driven by the COVID-19
pandemic. Variable Annuities in the United States improved
following repricing, leading to volume and product mix changes.
This was partly offset by lower volumes and updated assumptions in
the Health and Retirement Plans business.
Shareholders’ equity Shareholders’ equity decreased by
EUR 1.1 billion in the second half of 2020 to EUR 22.8 billion on
December 31, 2020. This was driven by adverse currency movements,
the net loss for the period and dividends to shareholders. As a
consequence, shareholders’ equity excluding revaluation reserves
decreased by EUR 1.2 billion, to EUR 15.5 billion – or EUR 7.45 per
common share – on December 31, 2020.
Gross financial leverage Gross financial leverage reduced
by EUR 0.6 billion in the second half of 2020, leading to gross
financial leverage of EUR 6.0 billion per December 31, 2020. This
reduction was primarily driven by the previously announced
repayment of USD 500 million senior debt maturing in December 2020,
and a weakening of the US dollar against the Euro.
The gross financial leverage ratio improved from 28.4% on June
30, 2020 to 27.9% on December 31, 2020, as the reduction in
leverage was partly offset by lower shareholders’ equity excluding
revaluation reserves.
Cash Capital at Holding and Free Cash Flows Aegon’s Cash
Capital at Holding position decreased from EUR 1,706 million to EUR
1,149 million during the second half of the year, which is in the
upper half of the operating range of EUR 0.5 billion to EUR 1.5
billion. Free Cash Flows to the Holding of EUR 140 million resulted
from EUR 275 million gross remittances from the units and EUR 135
million holding funding and operating expenses. These covered the
EUR 122 million dividends to shareholders.
The decrease in Cash Capital at Holding was driven by the
repayment of USD 500 million senior debt (EUR 411 million) and EUR
175 million capital injections. These capital injections mainly
related to the expansion of Aegon’s life and non-life insurance
partnership with Banco Santander following its acquisition of Banco
Popular.
Capital ratios Aegon’s Group Solvency II ratio increased
from 195% to 196% during the second half of 2020, and the capital
ratios of its three main units were above their respective
operating levels at the end of 2020. Per December 31, 2020, the
proposed final dividend 2020 of EUR 0.06 per common share has been
deducted from the Group Solvency II ratio, which reduced the ratio
by 1%-point. Capital generation after holding expenses amounted to
EUR 223 million for the second half of 2020. Adverse market
movements totaled EUR 217 million and were mainly driven by adverse
credit spread movements. One-time items amounted to a negative EUR
433 million. This included the expansion of Aegon’s life and
non-life insurance partnership with Banco Santander, and the
inclusion of Aegon Bank in the calculation of the Group Solvency II
ratio in accordance with industry-wide guidelines from the Dutch
Central Bank. Other one-time items in the operating units largely
offset each other. Normalized capital generation amounted to EUR
873 million, in line with the level in the second half of 2019.
The estimated RBC ratio in the United States increased to 432%
on December 31, 2020, compared with 407% on June 30, 2020, and
remained above the operating level of 400%. Market impacts had a
positive impact on the RBC ratio, primarily from rising equity
markets, while the adverse impact of rating migration and credit
defaults was limited. Normalized capital generation had a positive
impact on the RBC ratio. One-time items had a positive impact
overall and included reduced required capital due to decreased
hedge fund positions, and an adverse impact from setting up an
accrual in relation to the ongoing rehabilitation process of a
reinsurer. Finally, there was a downward impact from paying out
dividends to the US holding company which was partially offset by
the capital benefits as a result of the sale of the Pyramid
complex.
The estimated Solvency II ratio of NL Life decreased to 159% on
December 31, 2020, from 174% on June 30, 2020, and remained above
the operating level of 150%. The decline was driven by Aegon’s
decision to lower the factor applied when calculating the
loss-absorbing capacity of deferred taxes (LAC-DT), increased
investments in corporate credits, volatility in the separate
account business, and by adverse market impacts. These were partly
offset by a favorable impact from actuarial assumption changes.
Aegon decided to lower the LAC-DT factor from 65% to 45% to reduce
the sensitivity of this factor to economic variances going forward,
and to take into account industry-wide Q&A and good practices
recently published by the Dutch Central Bank. In the second half of
2020, cash was reallocated to corporate credits, which led to an
initial capital strain, but is expected to improve capital
generation going forward. The ratio was also adversely impacted by
volatility in the separate account business. Adverse impacts of
market movements were mainly driven by the impact from lower
interest rates and equity markets. Actuarial assumption updates
resulted in a positive impact from an update of mortality tables,
further aligning them with Dutch industry practices, and a negative
impact from an update of expense assumptions. Normalized capital
generation had a positive impact, more than offsetting the EUR 25
million dividend payment to Group in the fourth quarter.
A change of the internal model to mitigate volatility caused by
the basis risk between the EIOPA VA reference portfolio and Aegon’s
own asset portfolio was implemented in the fourth quarter of 2020.
This has reduced the impact from credit spread movements on the
Solvency II ratio of the Dutch Life business. The internal model
change is expected to remain in place until changes arising from
the Solvency II review are enacted.
The estimated Solvency II ratio for Scottish Equitable PLC
increased to 156% on December 31, 2020 from 145% on June 30, 2020,
bringing it above the operating level of 150%. The increase was
primarily driven by the update of the expense assumptions in the
second half of 2020, reflecting the benefit of cost reduction
initiatives. Furthermore, normalized capital generation had a
positive impact.
The Core Tier-1 ratio of Aegon Bank declined from 21.5% per June
30, 2020 to 21.0% on December 31, 2020. Drivers include increased
investments in mortgages, which led to higher required capital.
Final dividend 2020 Aegon aims to pay out a sustainable
dividend to allow equity investors to participate in Aegon’s
performance. The dividend can grow over time if Aegon’s performance
so allows. At the Annual General Meeting of Shareholders on June 3,
2021, the Executive Board will, in the absence of unforeseen
circumstances, propose a final dividend for 2020 of EUR 0.06 per
common share. If approved, and in combination with the interim
dividend of EUR 0.06 per share paid over the first half of 2020,
Aegon’s total dividend over 2020 will amount to EUR 0.12 per common
share. The final dividend will be paid in cash or stock at the
election of the shareholder. The value of the stock dividend will
be approximately equal to the cash dividend. Aegon intends to
neutralize the dilutive effect of the final 2020 stock dividend on
earnings per share in the third quarter of 2021, barring unforeseen
circumstances.
If the proposed dividend is approved by shareholders, Aegon’s
shares will be quoted ex-dividend on June 7, 2021. The record date
for the dividend will be June 8, 2021. The election period for
shareholders will run from June 14 up to and including June 30,
2021. The stock fraction will be based on the average share price
on Euronext Amsterdam from June 24 until June 30. The stock
dividend ratio will be published on Aegon’s website on June 30,
2021, and the dividend will be payable as of July 7, 2021.
Aegon N.V.
unaudited
Cash Capital at Holding
Half Year
Full Year
EUR millions
First half
Second half
First Half
Second Half
2019
2020
2019
2019
2020
2020
Beginning of period
1,274
1,632
1,192
1,706
1,274
1,192
Americas
402
406
423
42
809
465
The Netherlands
-
-
100
75
-
175
United Kingdom
179
72
-
39
251
39
International
34
94
4
29
128
33
Asset Management
24
20
-
46
44
46
Holding and other activities
-
3
25
45
3
70
Gross remittances
639
595
552
275
1,234
827
Funding and operating expenses
(142)
(169)
(162)
(135)
(312)
(297)
Free cash flow
497
426
390
140
923
530
Divestitures
131
-
153
-
131
153
Capital injections
(147)
(254)
(26)
(175)
(401)
(201)
Capital flows from / (to) shareholders
(170)
(456)
-
(122)
(626)
(122)
Net change in financial leverage
51
(159)
-
(411)
(108)
(411)
Other
(3)
3
(5)
12
-
7
End of period
1,632
1,192
1,706
1,149
1,192
1,149
Aegon N.V.
unaudited
Solvency II ratio
Dec. 31,
June 30,
Dec. 31,
EUR millions
Notes
2020
2020
2019
Eligible Own Funds
18,582
17,463
18,470
Consolidated Group SCR
9,473
8,933
9,173
Solvency II ratio
10, 11
196%
195%
201%
Eligible Own Funds to meet MCR
7,888
7,239
7,108
Minimum Capital Requirement (MCR)
2,325
2,262
2,244
MCR ratio
339%
320%
317%
United States - RBC ratio
432%
407%
470%
Aegon Levensverzekering N.V. - Solvency II
ratio
159%
174%
164%
Scottish Equitable Plc - Solvency II
ratio
156%
145%
148%
Core Tier-1 ratio Aegon Bank
21.0%
21.5%
19.8%
Full version press release Use this link for the full
version of the press release.
Additional information
Presentation The conference call presentation is
available on aegon.com as of 7.30 a.m. CET.
Supplements Aegon’s 2H 2020 Financial Supplement is
available on aegon.com.
Conference call including Q&A 9:00 a.m. CET
Audio webcast on aegon.com
Dial-in numbers United States: +1 720 543 0206 United
Kingdom: +44 (0)330 336 9125 The Netherlands: +31 (0) 20 703
8211
Passcode: 3920226
Two hours after the conference call, a replay will be available
on aegon.com.
Financial calendar 2021 First quarter 2021 results – May
12 AGM – June 3 Ex-dividend date final dividend 2020 – June 7
Publication stock fraction final dividend 2020 – June 30 Payment
date final dividend 2020 – July 7 Second quarter 2021 results –
August 12 Ex-dividend date interim dividend 2021 – August 20
Publication stock fraction interim dividend 2021 – September 10
Payment date interim dividend 2021 – September 17 Third quarter
2021 results – November 11
All references to the payment of (interim) dividends are subject
to any relevant board or shareholders’ resolution to distribute
such (interim) dividend and barring unforeseen circumstances.
About Aegon Aegon’s roots go back more than 175 years –
to the first half of the nineteenth century. Since then, Aegon has
grown into an international company, with businesses 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 on
aegon.com.
Notes (1 of 2)
1)
For segment reporting purposes underlying
earnings before tax, net underlying earnings, commissions and
expenses, operating expenses, income tax (including joint ventures
(jv's) and associated companies), income before tax (including jv's
and associated companies) and market consistent value of new
business are calculated by consolidating on a proportionate basis
the revenues and expenses of Aegon’s joint ventures and Aegon’s
associates. Aegon believes that these non-IFRS measures provide
meaningful information about the underlying results of Aegon's
business, including insight into the financial measures that
Aegon's senior management uses in managing the business. Among
other things, Aegon's senior management is compensated based in
part on Aegon's results against targets using the non-IFRS measures
presented here. While other insurers in Aegon's peer group present
substantially similar non-IFRS measures, the non-IFRS measures
presented in this document may nevertheless differ from the
non-IFRS measures presented by other insurers. There is no
standardized meaning to these measures under IFRS or any other
recognized set of accounting standards. Readers are cautioned to
consider carefully the different ways in which Aegon and its peers
present similar information before comparing them.
Aegon believes the non-IFRS measures shown
herein, when read together with Aegon's reported IFRS financial
statements, provide meaningful supplemental information for the
investing public to evaluate Aegon’s business after eliminating the
impact of current IFRS accounting policies for financial
instruments and insurance contracts, which embed a number of
accounting policy alternatives that companies may select in
presenting their results (i.e. companies can use different local
GAAPs to measure the insurance contract liability) and that can
make the comparability from period to period difficult.
Aegon segment reporting is based on the
businesses as presented in internal reports that are regularly
reviewed by the Executive Board which is regarded as the chief
operating decision maker.
Segment information
Second half 2020
Second half 2019
EUR millions
Segment total
Joint ventures and associates
eliminations
Consolidated
Segment total
Joint ventures and associates
eliminations
Consolidated
Net Underlying earnings
847
57
904
816
48
864
Tax on underlying earnings
(182)
35
(147)
(145)
24
(120)
Underlying earnings before tax
1,029
22
1,051
961
24
985
Fair value items
(1,150)
(57)
(1,207)
168
(46)
122
Realized gains / (losses) on
investments
135
(3)
131
131
(2)
129
Impairment charges
(55)
1
(54)
(50)
-
(50)
Impairment reversals
13
-
13
58
-
58
Other income / (charges)
(168)
14
(154)
(188)
-
(188)
Run-off businesses
25
-
25
15
-
15
Income / (loss) before tax
(171)
(23)
(195)
1,103
(24)
1,079
Income tax from certain proportionately
consolidated joint ventures and associates included in income
before tax
23
(23)
-
24
(24)
-
Income tax (expense) / benefit
24
23
47
(195)
24
(171)
Of which income tax from certain
proportionately consolidated joint ventures and associates included
in income before tax
(23)
23
-
(24)
24
-
Net income / (loss)
(147)
-
(147)
908
-
908
Segment information
Full year 2020
Full year 2019
EUR millions
Segment total
Joint ventures and associates
eliminations
Consolidated
Segment total
Joint ventures and associates
eliminations
Consolidated
Net Underlying earnings
1,437
90
1,527
1,648
95
1,743
Tax on underlying earnings
(293)
59
(234)
(321)
45
(276)
Underlying earnings before tax
1,729
31
1,761
1,969
50
2,019
Fair value items
(470)
(87)
(557)
(226)
(88)
(314)
Realized gains / (losses) on
investments
150
(8)
142
405
(2)
403
Impairment charges
(264)
1
(263)
(104)
-
(104)
Impairment reversals
29
-
29
73
-
73
Other income / (charges)
(1,239)
15
(1,224)
(281)
-
(281)
Run-off businesses
29
-
29
23
-
23
Income / (loss) before tax
(37)
(47)
(84)
1,868
(40)
1,828
Income tax from certain proportionately
consolidated joint ventures and associates included in income
before tax
47
(47)
-
40
(40)
-
Income tax (expense) / benefit
92
47
139
(343)
40
(303)
Of which income tax from certain
proportionately consolidated joint ventures and associates included
in income before tax
(47)
47
-
(40)
40
-
Net income / (loss)
55
-
55
1,525
-
1,525
Notes (2 of 2)
2)
New life sales is defined as new recurring
premiums plus 1/10 of single premiums.
3)
The present value, at point of sale, of
all cashflows for new business written during the reporting period,
calculated using approximate point of sale economics assumptions.
Market consistent value of new business is calculated using a risk
neutral approach, ignoring the investment returns expected to be
earned in the future in excess of risk free rates (swap curves),
with the exception of an allowance for liquidity premium. The Swap
curve is extrapolated beyond the last liquid point to an ultimate
forward rate. The market consistent value of new business is
calculated on a post tax basis, after allowing for the time value
financial options and guarantees, a market value margin for
non-hedgeable non-financial risks and the costs of non-hedgeable
stranded capital.
4)
Return on equity is a ratio calculated by
dividing the net underlying earnings after cost of leverage, by the
average shareholders' equity excluding the revaluation reserve.
5)
Included in Other income/(charges) are
income/charges made to policyholders with respect to income tax in
the United Kingdom.
6)
Includes production on investment
contracts without a discretionary participation feature of which
the proceeds are not recognized as revenues but are directly added
to Aegon's investment contract liabilities for UK.
7)
APE = recurring premium + 1/10 single
premium.
8)
Reconciliation of operating expenses, used
for segment reporting, to Aegon's IFRS based operating
expenses.
Second half
Second half
Full Year
Full Year
2020
2019
2020
2019
Employee expenses
957
1,072
1,995
2,149
Administrative expenses
771
816
1,593
1,537
Operating expenses for IFRS
reporting
1,728
1,888
3,588
3,686
Operating expenses related to jv's and
associates
138
127
264
242
Operating expenses in earnings
release
1,866
2,015
3,852
3,928
9)
New life sales, gross deposits and net
deposits data include results from Aegon’s joint ventures and
Aegon’s associates consolidated on a proportionate basis.
10)
The calculation of the Solvency II capital
surplus and ratio are based on Solvency II requirements. For
insurance entities in Solvency II equivalent regimes (United
States, Bermuda and Brazil) local regulatory solvency measurements
are used. Specifically, required capital for the regulated entities
in the US is calculated as one and a half times (150%) the upper
end of the Company Action Level range (200% of Authorized Control
Level) as applied by the National Association of Insurance
Commissioners in the US, while the own funds is calculated by
applying a haircut to available capital under the local regulatory
solvency measurement of one time (100%) the upper end of the
Company Action Level range. For entities in financial sectors other
than the insurance sector, the solvency requirements of the
appropriate regulatory framework are taken into account in the
group ratio. The group ratio does include Aegon Bank N.V. As the UK
With-Profit funds is ring fenced, no surplus is taken into account
regarding the UK With-Profit funds for Aegon UK and Group
numbers.
11)
The solvency II capital ratio reflects
Aegon’s interpretation of Solvency II requirements and are not
final until filed with the regulators. The solvency II capital
calculation is subject to supervisory review on an ongoing
basis.
12)
The numbers in this release are
unaudited
Cautionary note regarding non-IFRS-EU measures This
document includes the following non-IFRS-EU financial measures:
underlying earnings before tax, income tax, income before tax,
market consistent value of new business and return on equity. 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, except for market
consistent value of new business and return on equity, to the most
comparable IFRS-EU measure is provided in the notes to this press
release. Market consistent value of new business is not based on
IFRS-EU, which are used to report Aegon’s primary financial
statements and should not be viewed as a substitute for IFRS-EU
financial measures. Aegon may define and calculate market
consistent value of new business differently than other companies.
Return on equity is a ratio using a non-IFRS-EU measure and is
calculated by dividing the net underlying earnings after cost of
leverage by the average shareholders’ equity adjusted for the
revaluation reserve. 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.
Local currencies and constant currency exchange rates
This document contains certain information about Aegon’s results,
financial condition and revenue generating investments presented in
USD for the Americas and in GBP for the United Kingdom, because
those businesses operate and are managed primarily in those
currencies. Certain comparative information presented on a constant
currency basis eliminates the effects of changes in currency
exchange rates. None of this information is a substitute for or
superior to financial information about Aegon presented in EUR,
which is the currency of Aegon’s primary financial statements.
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;
- 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 written premium, 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;
- 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;
- Catastrophic events, either manmade or by nature, including by
way of example acts of God, acts of terrorism, acts of war and
pandemics, could result in material losses and significantly
interrupt Aegon’s business;
- 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;
- 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;
- Reinsurers to whom Aegon has ceded significant underwriting
risks may fail to meet their obligations;
- 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;
- Customer responsiveness to both new products and distribution
channels;
- 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;
- 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;
- Aegon’s failure to achieve anticipated levels of earnings or
operational efficiencies, as well as other management initiatives
related to cost savings, cash capital at Holding, gross financial
leverage and free cash flow;
- Changes in the policies of central banks and/or
governments;
- Litigation or regulatory action that could require Aegon to pay
significant damages or change the way Aegon does business;
- Competitive, legal, regulatory, or tax changes that affect
profitability, the distribution cost of or demand for Aegon’s
products;
- Consequences of an actual or potential break-up of the European
monetary union in whole or in part, or the exit of the United
Kingdom from the European Union and potential consequences if other
European Union countries leave the European Union;
- 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); and
- 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.
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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version on businesswire.com: https://www.businesswire.com/news/home/20210210006040/en/
Media relations Dick Schiethart +31 (0) 70 344 8821
gcc@aegon.com
Investor relations Jan Willem Weidema +31 (0) 70 344 8028
ir@aegon.com
Conference call including Q&A (9:00 a.m. CET) Audio webcast
on aegon.com United States: +1 720 543 0206 United Kingdom: +44 330
336 9125 The Netherlands: +31 20 703 8211 Passcode: 3920226
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