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Fair value (Tables)
 12 Months Ended
Dec. 31, 2018
Text block [abstract]  
Summary of the Analysis of Assets and Liabilities Recorded at Fair Value on a Recurring Basis by Level of the Fair Value Hierarchy

The table below provides an analysis of assets and liabilities recorded at fair value on a recurring basis by level of the fair value hierarchy:

 

                   Level I                    Level II                    Level III                    Total 2018  

Assets carried at fair value

            

Available-for-sale

            

Shares

      82        155        241        478  

Debt securities

      24,652        51,446        1,242        77,340  

Money market and other short-term instruments

      1,427        4,528        -        5,955  

Other investments at fair value

      -        409        493        902  
     26,160        56,538        1,976        84,675  

Fair value through profit or loss

            

Shares

      217        239        1,226        1,682  

Debt securities

      1,868        2,028        17        3,913  

Money market and other short-term instruments

      17        335        -        352  

Other investments at fair value

      1        1,272        1,376        2,649  

Investments for account of policyholders 1

      103,977        87,893        1,871        193,741  

Derivatives

      53        7,527        35        7,615  

Investments in real estate

      -        -        2,700        2,700  

Investments in real estate for policyholders

      -        -        612        612  
     106,134        99,295        7,837        213,266  

Revalued amounts

            

Real estate held for own use

      -        -        263        263  
      

 

 -

 

  

 

     

 

 -

 

  

 

     

 

 263

 

  

 

     

 

 263

 

  

 

Total assets at fair value

      132,294        155,833        10,077        298,204  

Liabilities carried at fair value

            

Investment contracts for account of policyholders 2

      -        49,641        206        49,847  

Borrowings 3

      -        536        -        536  

Derivatives

      93        4,648        2,489        7,230  

Total liabilities at fair value

      93        54,824        2,695        57,613  

 

1

The investments for account of policyholders included in the table above only include 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.
                   Level I                    Level II                    Level III                    Total 2017  

Assets carried at fair value

            

Available-for-sale

            

Shares

      51        151        288        490  

Debt securities

      26,338        52,415        1,447        80,200  

Money market and other short-term instruments

      1,664        5,026        -        6,690  

Other investments at fair value

      -        208        583        791  
     28,053        57,800        2,318        88,170  

Fair value through profit or loss

            

Shares

      226        232        604        1,062  

Debt securities

      1,964        2,175        4        4,144  

Money market and other short-term instruments

      17        102        -        119  

Other investments at fair value

      1        539        1,255        1,795  

Investments for account of policyholders 1

      115,323        76,302        1,784        193,409  

Derivatives

      68        5,787        57        5,912  

Investments in real estate

      -        -        2,147        2,147  

Investments in real estate for policyholders

      -        -        655        655  
     117,599        85,137        6,506        209,241  

Revalued amounts

            

Real estate held for own use

      -        -        307        307  
      

 

 -

 

  

 

     

 

 -

 

  

 

     

 

 307

 

  

 

     

 

 307

 

  

 

Total assets at fair value

      145,652        142,937        9,130        297,718  

Liabilities carried at fair value

            

Investment contracts for account of policyholders 2

      -        36,950        219        37,169  

Borrowings 3

      -        536        -        536  

Derivatives

      34        5,251        1,845        7,130  

Total liabilities at fair value

      34        42,738        2,064        44,835  
1

The investments for account of policyholders included in the table above only include 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.
Schedule of Transfers between Level 1 and Level II for Financial Assets and Liabilities Recorded at Fair Value on Recurring Basis

The table below shows transfers between Level I and Level II for financial assets and financial liabilities recorded at fair value on a recurring basis.

 

       Total 2018       Total 2017  
      Transfers Level I
to Level II		      Transfers Level II
to Level I		     Transfers Level I
to Level II		      Transfers Level II
to Level I		  

Assets carried at fair value

           

Available-for-sale

           

Shares

      -        -       1        1  

Debt securities

      -        -       12        -  

Money markets and other short-term instruments

      -        -       -        1,664  
       -        -       13        1,666  

Fair value through profit or loss

           

Shares

      3        1       124        19  

Investments for account of policyholders

      -        (4 )      12        30  
       3        (3 )      136        49  

Total assets at fair value

      3        (3 )      149        1,714  

Investment contracts for account of policyholders

      -        -       1        -  

Total Liabilities carried at fair value

      -        -       1        -  

 
Disclosures of Changes in Level 3 Assets

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.

 

Assets carried

at fair value

     



 At
Jan-
uary
1,
2018		  

 
 
 		     




 Acqu

isi-

tions
thro-

ugh
busi-

ness
com-

bi

na-

tions

  

 

 
 

 
 

 
 

 

 

 

     




 Disp-

osal
of a
busi-
ness

  

 
 

 

    



 To-

tal

ga-

ins/
loss-

es

in

in-

come
sate-

ment1

  

 

 

 
 

 

 

 

 
 

 

    



 To-

tal ga-

ins\
loss-

es
in OCI2

  

 

 
 

 
 

    

 Pur-

cha-

ses

  

 

 

     

 Sa-

les

  

 

    
 Settle-
ments
 		    



 Net

ex-

cha-

nge
diffe-
rence

  

 

 

 

 

    

 Re-

clas-

sifi-

cation

  

 

 

 

     


 Trans-
fers
from

lev-

els I

and

II
 
 

 

 

 

 

     


 Trans-

fer to
lev-

els I

and II

  

 
 

 

 

    



 Tran-

sfer
to dis

-posal
gro-

ups

  

 
 

 
 

 

     



 At
Dece-
mber
31,
2018		  

 
 
 		     


















 To-

tal un-
rea-
lized
gains

and
(loss-

es)

for the
peroid
rec-

orded
in

the
P&L
for
instru-
ments
held
at
Dece-
mber
31,
20183

  



 
 

 
 

 

 
 
 

 
 

 
 
 

 
 
 

 
 
 

Available-for-sale

                                      

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  

Investments in real estate

      2,147        -        -       261       -       474        (209 )      -       27       -        -        -       -        2,700        202  

Investments in real estate for policyholders

      655        -        -       5       -       2        (43 )      -       (7 )      -        -        -       -        612        4  
     6,506        130        -       490       -       1,924        (1,360 )      -       90       36        94        (72 )      -        7,837        383  

Revalued amounts

                                      

Real estate held for own use

      307        -        (1 )      (19 )      (39 )      17        (10 )      -       7       -        -        -       -        263        5  
      

 

 307

 

  

 

     

 

 -

 

  

 

     

 

 (1

 

 ) 

 

    

 

 (19

 

 ) 

 

    

 

 (39

 

 ) 

 

    

 

 17

 

  

 

     

 

 (10

 

 ) 

 

    

 

 -

 

  

 

    

 

 7

 

  

 

    

 

 -

 

  

 

     

 

 -

 

  

 

     

 

 -

 

  

 

    

 

 -

 

  

 

     

 

 263

 

  

 

     

 

 5

 

  

 

Total assets at fair value

      9,130        130        (1 )      435       (87 )      2,570        (1,624 )      (472 )      185       42        151        (382 )      -        10,077        388  

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, (Gains)/losses transferred to the income statement on disposal and impairment of available-for-sale investments and Changes in revaluation reserve real estate held for own use of the statement of other comprehensive income.
3

Total gains/(losses) for the period during which the financial instrument was in Level III.

 

Assets carried at
fair value		    At
January
1, 2017		      Total
gains/
losses
in
income
state-
ment 1		     Total
gains/
losses
in
OCI 2		     Purc-
hases		     Sales     Settle-
ments		     Net
exch-
ange
differ-
ence		     Reclas-
sification		     Tran-
sfers
from
levels
I and
II		      Tran-
sfers
to
levels
I and
II		     Tran-
sfers
to
disp-
osal
groups		     At
Dece-
mber
31,
2017		     

Total
unreal-
ized
gains

and
(losses)

for the
period
recor-ded

in the

P&L

for
instru-
ments
held at
Dece-
mber 31,
20173

  

Available-for-sale

                              

Shares

      393        54       (46 )      68       (112 )      (35 )      (34 )      -       -        -       -       288        -  

Debt securities

      1,966        39       (2 )      678       (149 )      (890 )      (186 )      -       203        (211 )      -       1,447        -  

Other investments at fair value

      754        (112 )      (109 )      194       (48 )      (9 )      (87 )      -       1        -       -       583        -  
       3,112        (19 )      (158 )      939       (309 )      (935 )      (307 )      -       205        (211 )      -       2,318        -  

Fair value through profit or loss

                              

Shares

      50        (11 )      -       583       (18 )      -       -       -       -        -       -       604        (11 ) 

Debt securities

      6        -       -       -       -       -       (1 )      -       -        -       -       4        1  

Other investments at fair value

      1,257        23       -       378       (350 )      -       (162 )      -       341        (233 )      -       1,255        20  

Investments for account of policyholders

      1,726        11       -       671       (622 )      -       (27 )      -       32        (8 )      -       1,784        30  

Derivatives

      108        (33 )      -       -       -       -       (2 )      (16 )      -        -       -       57        (21 ) 

Investments in real estate

      1,999        193       -       246       (202 )      -       (89 )      -       -        -       -       2,147        77  

Investments in real estate for policyholders

      686        38       -       10       (53 )      -       (26 )      -       -        -       -       655        38  
     5,831        220       -       1,889       (1,245 )      -       (306 )      (16 )      374        (241 )      -       6,506        134  

Revalued amounts

                              

Real estate held for own use

      332        (2 )      8       (3 )      (4 )      -       (24 )      -       -        -       -       307        (3 ) 
       332        (2 )      8       (3 )      (4 )      -       (24 )      -       -        -       -       307        (3 ) 

Total assets at fair value

      9,275        199       (150 )      2,826       (1,558 )      (935 )      (638 )      (16 )      578        (452 )      -       9,130        131  

Liabilities carried at fair value

                              

Investment contracts for account of policyholders

      176        7       -       60       (21 )      -       (12 )      -       10        (2 )      -       219        (2 ) 

Derivatives

      2,467        (828 )      -       -       300       -       (75 )      10       -        -       (30 )      1,845        (745 ) 
       2,643        (821 )      -       60       279       -       (87 )      10       10        (2 )      (30 )      2,064        (747 ) 
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, (Gains)/losses transferred to the income statement on disposal and impairment of available-for-sale investments and Changes in revaluation reserve real estate held for own use of the statement of other comprehensive income.
3

Total gains/(losses) for the period during which the financial instrument was in Level III.
Information about Significant Unobservable Inputs

The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level III financial instruments.

 

Assets carried at fair value   Valuation
technique 1		     Significant
unobservable
input 2		     December 31,
2018		     Range
(weighted
average)		     December 31,
2017		     Range
(weighted
average)		  
Available-for-sale   Net asset value 3     n.a.     205     n.a.     231     n.a.  

Shares

     Other       n.a.       36       n.a.       57       n.a.  
        241         288    

Debt securities

     Broker quote       n.a.       985       n.a.       1,034       n.a.  
              1.04% – 2.72%  
    Discounted cash flow       Credit spread       17       3.38%       116       (2.64%)  
      Other       n.a.       240       n.a.       297       n.a.  
        1,242         1,447    

Other investments at fair value

            

Tax credit investments

     Discounted cash flow       Discount rate       435       6.8%       528       5.8%  

Investment funds

     Net asset value  3        n.a.       24       n.a.       31       n.a.  

Other

     Other       n.a.       34       n.a.       24       n.a.  
        493         583    

At December 31

                     1,976               2,318          

Fair value through profit or loss

            

Shares

     Other       n.a.       1,226       n.a.       604       n.a.  

Debt securities

     Other       n.a.       17       n.a.       4       n.a.  
        1,243         609    

Other investments at fair value

            

Investment funds

     Net asset value  3        n.a.       1,334       n.a.       1,246       n.a.  

Other

     Other       n.a.       42       n.a.       9       n.a.  
        1,376         1,255    

Derivatives

            

Longevity swap

     Discounted cash flow       Mortality       33       n.a.       24       n.a.  

Other

     Other       n.a.       -       n.a.       30       n.a.  
        33         54    

Real estate

            

Investments in real estate

     Direct capitalization       Capitalization       427       4.25% – 7.5%       496       3.0% – 10.0%  
    technique       rate         (4.4%)         (5.9%)  
    Appraisal value       n.a.       2,150       n.a.       1,495       n.a.  
      Other       n.a.       123       n.a.       155       n.a.  
        2,700         2,147    

At December 31

                     5,352               4,065          

Revalued amounts

 

     Direct capitalization       Capitalization         8.25% – 9.50%         6.0% – 10.0%  

Real estate held for own use

     technique       rate       53       (8.9%)       157       (7.9%)  
    Appraisal value       n.a.       101       n.a.       115       n.a.  
      Other       n.a.       108       n.a.       35       n.a.  

At December 31

         263         307    

Total assets at fair value 4

                     7,592               6,689          

Liabilities carried at fair value

            

Derivatives

            

Embedded derivatives in

       Own credit         0.25% – 0.40%         0.2% – 0.3%  

insurance contracts

     Discounted cash flow       spread       2,484       (0.30%)       1,831       (0.22%)  

Longevity swap

     Discounted cash flow       Mortality       5       n.a.       10       n.a.  

Other

     Other       n.a.       -       n.a.       3       n.a.  

Total liabilities at fair value

                     2,489               1,845          

 

1

Other in the table above (column Valuation technique) includes investments for which the fair value is uncorroborated and no broker quote is received.
2 

Not applicable (n.a.) has been included when the unobservable inputs are not developed by the Group and are not reasonably available.
3

Net asset value is considered the best approximation to the fair value of these financial instruments.
4

Investments for account of policyholders are excluded from the table above and from the disclosure regarding reasonably possible alternative assumptions. Policyholder assets, and their returns, belong to policyholders and do not impact Aegon’s net income or equity. The effect on total assets is offset by the effect on total liabilities. Derivatives exclude derivatives for account of policyholders amounting to EUR 2 million (2017: EUR 3 million).
Effect of Changes in Significant Unobservable Assumptions to Reasonably Possible Alternatives

The table below presents the impact on a fair value measurement of a change in the own credit spread by 20 basis points included in the discount rate.

 

      December
31, 2018		      Effect of reasonably
possible alternative
assumptions (+/-)		     December
31, 2017		      Effect of reasonably
possible alternative
assumptions (+/-)		  
              Increase      Decrease             Increase      Decrease  

Financial liabilities carried at fair value

                 

Embedded derivatives in insurance contracts

      2,484        131        (126 )      1,831        125        (120 ) 

 
Carrying Values and Estimated Fair Values of Assets and Liabilities

The following table presents the carrying values and estimated fair values of assets and liabilities, excluding assets and liabilities which are carried at fair value on a recurring basis.

 

2018    Carrying
amount
December
31, 2018		      Estimated fair value hierarchy      Total
estimated
fair value
December
31, 2018		  
              Level I      Level II      Level III          

Assets

               

Mortgage loans – held at amortized cost

      36,240        -        1        39,757        39,758  

Private loans – held at amortized cost

      4,103        -        42        4,452        4,494  

Other loans – held at amortized cost

      2,310        13        2,064        233        2,310  

Liabilities

               

Subordinated borrowings – held at amortized cost

      1,389        1,355        -        -        1,355  

Trust pass-through securities – held at amortized cost

      133        -        128        -        128  

Borrowings – held at amortized cost

      11,525        1,570        28        10,287        11,885  

Investment contracts – held at amortized cost

      17,825        -        -        18,028        18,028  
2017    Carrying
amount
December
31, 2017		      Estimated fair value hierarchy      Total
estimated
fair value
December
31, 2017		  
              Level I      Level II      Level III          

Assets

               

Mortgage loans – held at amortized cost

      33,562        -        -        38,076        38,076  

Private loans – held at amortized cost

      3,642        -        64        4,117        4,181  

Other loans – held at amortized cost

      2,164        6        1,991        166        2,164  

Liabilities

               

Subordinated borrowings – held at amortized cost

      764        791        162        -        953  

Trust pass-through securities – held at amortized cost

      133        -        137        -        137  

Borrowings – held at amortized cost

      13,099        2,116        28        11,355        13,499  

Investment contracts – held at amortized cost

      16,665        -        -        17,031        17,031  

 
Carrying Values and Estimated Fair Values of Assets and Liabilities

Summary of total financial assets and financial liabilities at fair value through profit or loss

The table that follows summarizes the carrying amounts of financial assets and financial liabilities that are classified as at fair value through profit or loss, with appropriate distinction between those financial assets and financial liabilities held for trading and those that, upon initial recognition, were designated as at fair value through profit or loss.

 

      2018      2017  
                  Trading                  Designated                      Trading                  Designated  

Investments for general account

      174        8,424        78        7,042  

Investments for account of policyholders

      -        193,741        -        193,409  

Derivatives with positive values not designated as hedges

      7,181        -        5,430        -  

Total financial assets at fair value through profit or loss

      7,355        202,165        5,508        200,451  

Investment contracts for account of policyholders

      -        49,847        -        37,169  

Derivatives with negative values not designated as hedges

      6,935        -        6,792        -  

Borrowings

      -        536        -        536  

Total financial liabilities at fair value through profit or loss

      6,935        50,383        6,792        37,705  

 
Summary of Gains and losses recognized in the income statement on financial assets and financial liabilities

Gains and losses recognized in the income statement on financial assets and financial liabilities classified as at fair value through profit or loss can be summarized as follows:

 

              2018                 2017  
              Trading             Designated                 Trading              Designated  

Net gains and (losses)

      (4,584 )      (7,356 )      13,924        5,679