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Other equity instruments
 12 Months Ended
Dec. 31, 2018
Statement [LineItems]  
Other equity instruments

33 Other equity instruments

 

     

Junior perpetual

capital securities

    

Perpetual

cumulative

subordinated

bonds

     

Share options

and incentive

plans 1

    

Non-cumulative

subordinated

notes

     Total  

At January 1, 2018

      3,008       454        61       271       3,794  

Shares granted

      -       -        16       -       16  

Shares vested

      -       -        (19 )      -       (19 ) 

Securities redeemed

      (200 )      -        -       (271 )      (471 ) 

At December 31, 2018

      2,808       454        58       -       3,320  

At January 1, 2017

      3,008       454        65       271       3,797  

Shares granted

      -       -        26       -       26  

Shares vested

      -       -        (30 )      -       (30 ) 

At December 31, 2017

      3,008       454        61       271       3,794  

At January 1, 2016

      3,008       454        68       271       3,800  

Shares granted

      -       -        13       -       13  

Shares vested

      -       -        (16 )      -       (16 ) 

At December 31, 2016

      3,008       454        65       271       3,797  

 

1 

Share options and incentive plans include the shares and options granted to personnel which are not yet vested.

 

Junior perpetual capital

securities

    Coupon rate    Coupon date, as of   

Year of    

next call    

    2018      2017    2016

USD 500 million

    6.50%    Quarterly, December 15    2019        424      424    424

USD 250 million

    floating LIBOR rate 1    Quarterly, December 15    2019        212      212    212

USD 500 million

    floating CMS rate 2    Quarterly, July 15    2019        402      402    402

USD 1 billion

    6.375%    Quarterly, June 15    2019        821      821    821

EUR 950 million

    floating DSL rate 3    Quarterly, July 15    2019        950      950    950

EUR 200 million

    6.0%    Annually, July 21   

Called in    

2018    

    -      200    200

At December 31

                   2,808      3,008    3,008

 

1 

The coupon of the USD 250 million junior perpetual capital securities is reset each quarter based on the then prevailing three-month LIBOR yield plus a spread of 87.5 basis points, with a minimum of 4%.
2 

The coupon of the USD 500 million junior perpetual capital securities is reset each quarter based on the then prevailing ten-year US dollar interest rate swap yield plus a spread of ten basis points, with a maximum of 8.5%.
3 

The coupon of the EUR 950 million junior perpetual capital securities is reset each quarter based on the then prevailing ten-year Dutch government bond yield plus a spread of ten basis points, with a maximum of 8%.

The interest rate exposure on some of these securities has been swapped to a three-month LIBOR and/or EURIBOR based yield.

The securities have been issued at par. The securities have subordination provisions, rank junior to all other liabilities and senior to shareholders’ equity only. The conditions of the securities contain certain provisions for optional and required coupon payment deferral and, in situations under Aegon’s control, mandatory coupon payment events. Although the securities have no stated maturity, Aegon has the right to call the securities for redemption at par for the first time on the coupon date in the years as specified, or on any coupon payment date thereafter.

 

Perpetual cumulative  subordinated

bonds

    Coupon rate    Coupon date     

 Year of  

next call  

  

 

      2018         2017        2016  

EUR 203 million

    4.260% 1, 4    Annual, March 4      2021          203         203        203  

EUR 114 million

    1.506% 2, 4    Annual, June 8      2025          114         114        114  

EUR 136 million

    1.425% 3, 4    Annual, October 14      2028          136         136        136  

At December 31

                         454         454        454  

 

1 

The coupon of the EUR 203 million bonds was originally set at 7.125% until March 4, 2011. Subsequently, the coupon has been reset at 4.26% until March 4, 2021.
2 

The coupon of the EUR 114 million bonds was originally set at 8% until June 8, 2005. Subsequently, the coupon has been reset at 4.156% until June 8, 2015 and 1.506% until June 8, 2025.
3 

The coupon of the EUR 136 million bonds was originally set at 7.25% until October 14, 2008. Subsequently, the coupon has been reset at 5.185% until October 14, 2018 and 1.425% until October 14, 2028.
4 

If the bonds are not called on the respective call dates and after consecutive period of ten years, the coupons will be reset at the then prevailing effective yield of ten-year Dutch government securities plus a spread of 85 basis points.

The bonds have the same subordination provisions as dated subordinated debt. In addition, the conditions of the bonds contain provisions for interest deferral.

Although the bonds have no stated maturity, Aegon has the right to call the bonds for redemption at par for the first time on the coupon date in the year of next call.

 

Non-cumulative subordinated notes

    Coupon rate    Coupon date     
 Year of  
next call  		  
 		      2018         2017        2016  

USD 525 million

    8%    Quarterly, February 15      Called in 2018          -         271        271  

At December 31

                         -         271        271  

With effect on May 15, 2018, Aegon has exercised its right to redeem USD 525 million non-cumulative subordinated notes, subsequently leading to their redemption. The securities had a stated maturity of 30 years, however, Aegon had the right to call the securities for redemption at par on any coupon payment date.

The non-cumulative subordinated notes were initially issued on February 7, 2012, in aggregate principal amount of 8.00%, due 2042, in an underwritten public offering in the United States registered with the US Securities and Exchange Commission.

The securities were subordinated and rank senior to the junior perpetual capital securities, equally with the perpetual cumulative subordinated bonds and fixed floating subordinated notes, and junior to all other liabilities. The conditions of the securities contained certain provisions for optional and required cancellation of interest payments.

These notes were recognized as compound financial instruments and separated into an equity component and a liability component. Prior to redemption, the equity component had a book value of EUR 271 million (2017: EUR 271 million), subordinated borrowings amounted to EUR 68 million (2017: EUR 69 million) and a deferred tax liability amounting to EUR 89 million (2017: EUR 92 million).

Refer to note 34 Subordinated borrowings for details of the component classified as subordinated borrowings.
Aegon N.V [member]  
Statement [LineItems]  
Other equity instruments

14 Other equity instruments

 

      Junior perpetual
capital securities		     Perpetual
cumulative
 subordinated
bonds		        Share options
and incentive
plans 1)		    

Non-cumulative

subordinated

notes

                   Total  

At January 1, 2018

      3,008       454        61       271       3,794  

Shares granted

      -       -        16       -       16  

Shares vested

      -       -        (19 )      -       (19 ) 

Securities redeemed

      (200 )      -        -       (271 )      (471 ) 

At December 31, 2018

      2,808       454        58       -       3,320  

At January 1, 2017

      3,008       454        65       271       3,797  

Shares granted

      -       -        26       -       26  

Shares vested

      -       -        (30 )      -       (30 ) 

At December 31, 2017

      3,008       454        61       271       3,794  

 

1

Share options and incentive plans include the shares and options granted to personnel which are not yet vested.

 

Junior perpetual capital securities    Coupon rate      Coupon date, as of      Year of next call                  2018                  2017  

USD 500 million

      6.50%        Quarterly, December 15        2019        424        424  

USD 250 million

      floating LIBOR rate 1        Quarterly, December 15        2019        212        212  

USD 500 million

      floating CMS rate 2        Quarterly, July 15        2019        402        402  

USD 1 billion

      6.375%        Quarterly, June 15        2019        821        821  

EUR 950 million

      floating DSL rate 3        Quarterly, July 15        2019        950        950  

EUR 200 million

      6.0%        Annually, July 21        Called in 2018        -        200  

At December 31

                                 2,808        3,008  

 

1

The coupon of the USD 250 million junior perpetual capital securities is reset each quarter based on the then prevailing three-month LIBOR yield plus a spread of 87.5 basis points, with a minimum of 4%.
2

The coupon of the USD 500 million junior perpetual capital securities is reset each quarter based on the then prevailing ten-year US dollar interest rate swap yield plus a spread of ten basis points, with a maximum of 8.5%.
3

The coupon of the EUR 950 million junior perpetual capital securities is reset each quarter based on the then prevailing ten-year Dutch government bond yield plus a spread of ten basis points, with a maximum of 8%.

The interest rate exposure on some of these securities has been swapped to a three-month LIBOR and/or EURIBOR based yield.

The securities have been issued at par. The securities have subordination provisions, rank junior to all other liabilities and senior to shareholders’ equity only. The conditions of the securities contain certain provisions for optional and required coupon payment deferral and, in situations under Aegon’s control, mandatory coupon payment events. Although the securities have no stated maturity, Aegon has the right to call the securities for redemption at par for the first time on the coupon date in the years as specified, or on any coupon payment date thereafter.

 

Perpetual cumulative subordinated bonds    Coupon rate      Coupon date      Year of next call                  2018                  2017  

EUR 203 million

      4.260% 1, 4        Annual, March 4        2021        203        203  

EUR 114 million

      1.506% 2, 4        Annual, June 8        2025        114        114  

EUR 136 million

      1.425% 3, 4        Annual, October 14        2028        136        136  

At December 31

                                 454        454  

 

1

The coupon of the EUR 203 million bonds was originally set at 7.125% until March 4, 2011. Subsequently, the coupon has been reset at 4.26% until March 4, 2021.
2

The coupon of the EUR 114 million bonds was originally set at 8% until June 8, 2005. Subsequently, the coupon has been reset at 4.156% until June 8, 2015 and 1.506% until June 8, 2025.
3

The coupon of the EUR 136 million bonds was originally set at 7.25% until October 14, 2008. Subsequently, the coupon has been reset at 5.185% until October 14, 2018 and 1.425% until October 14, 2028.
4

If the bonds are not called on the respective call dates and after consecutive period of ten years, the coupons will be reset at the then prevailing effective yield of ten-year Dutch government securities plus a spread of 85 basis points.

The bonds have the same subordination provisions as dated subordinated debt. In addition, the conditions of the bonds contain provisions for interest deferral.

 

Although the bonds have no stated maturity, Aegon has the right to call the bonds for redemption at par for the first time on the coupon date in the year of next call.

 

Non-cumulative subordinated notes    Coupon rate     Coupon date, as of      Year of next call                  2018                  2017  

USD 525 million

      8 %      Quarterly, February 15        Called in 2018        -        271  

At December 31

                                -        271  

With effect May 15, 2018, Aegon has exercised its right to redeem USD 525 million non-cumulative subordinated notes, subsequently leading to their redemption. The securities had a stated maturity of 30 years, however, Aegon had the right to call the securities for redemption at par on any coupon payment date.

The non-cumulative subordinated notes were initially issued on February 7, 2012, in aggregate principal amount of 8.00%, due 2042, in an underwritten public offering in the United States registered with the US Securities and Exchange Commission.

The securities were subordinated and ranked senior to the junior perpetual capital securities, equally with the perpetual cumulative subordinated bonds and fixed floating subordinated notes, and junior to all other liabilities. The conditions of the securities contained certain provisions for optional and required cancellation of interest payments.

These notes were recognized as compound financial instruments and separated into an equity component and a liability component. Prior to redemption, the equity component had a book value of EUR 271 million (2017: EUR 271 million), subordinated borrowings amounted to EUR 68 million (2017: EUR 69 million) and a deferred tax liability amounting to EUR 89 million (2017: EUR 92 million).

Refer to note 15 Subordinated borrowings for details of the component classified as subordinated borrowings.