Capital management and solvency (Tables)

12 Months Ended

Dec. 31, 2021

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Summary of Capital Ratios of Aegon's Operating Units

Capital ratios of Aegon’s main operating units

	December 31, 20211)		December 31, 2020
US RBC ratio		426%		432%
NL Life Solvency II ratio		186%		159%
Scottish Equitable Plc (UK) Solvency II ratio		167%		156%

1  The Solvency II ratios are estimates and are not final until filed with the respective supervisory authority.

Disclosure of Estimated Capital Position

On December 31, 2021, Aegon’s estimated capital position was:

	December 31, 20211)		December 31, 2020
Group Own Funds		19,431		18,582
Group SCR		9,226		9,473
Group Solvency II ratio		211%		196%

1  The Solvency II ratios are estimates and are not final until filed with the respective supervisory authority.

Summary of Composition of Available Own Funds Across Tiers

The below table provides the composition of Aegon’s Available Own Funds across Tiers:

			2021				2020
Available Own Funds	Available             Own Funds		Percentage   total		Available             Own Funds		Percentage   total
Tier 1 (Unrestricted Tier 1 + Restricted Tier 1)		16,409		84%		15,542		84%
Unrestricted Tier 1		14,044		72%		12,972		70%
Restricted Tier 1		2,364		12%		2,571		14%
Junior Perpetual Capital Securities		1,391		7%		1,563		8%
Perpetual Cumulative Securities		459		2%		475		3%
Perpetual Contingent Convertible Securities		515		3%		532		3%
Tier 2		2,348		12%		2,340		13%
Subordinated notes issued by AFC		832		4%		818		4%
Subordinated liabilities Aegon NV		767		4%		754		4%
Grandfathered subordinated notes		750		4%		768		4%
Tier 3		675		3%		700		4%
Total Available Own Funds		19,431				18,582

Summary of Equity Compares to Solvency II Own Funds

IFRS equity compares to Solvency II Own Funds as follows:

	2021			2020
IFRS Shareholders’ Equity		23,813			22,018
IFRS adjustments for Other Equity instruments and non controlling interests		2,559			2,644
IFRS Group Equity		26,372			24,661
Solvency II revaluations & reclassifications		(9,096	)		(8,621	)
Transferability restrictions1)		(1,772	)		(1,766	)
Excess of Assets over Liabilities		15,504			14,274
Availability adjustments		4,020			4,416
Fungibility adjustments		(93	)		(108	)
Available Own Funds		19,431			18,582

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

Summary of Composition of Total Capitalization and Calculation of Gross Financial Leverage Ratio

The following table shows the composition of Aegon’s total capitalization, the calculation of the gross financial leverage ratio and its fixed charge coverage:

	Note		2021			2020
Total shareholders’ equity - based on IFRS as adopted by the EU		30		24,282			22,815
Non-controlling interests and Long Term Incentive Plans not yet vested		31, SOFP2)		253			126
Revaluation reserves		30		(6,442	)		(7,480	)
Adjusted shareholders’ equity				18,093			15,461
Perpetual contingent convertible securities		31		500			500
Junior perpetual capital securities		31		1,352			1,564
Perpetual cumulative subordinated bonds		31		454			454
Fixed floating subordinated notes		32		1,396			1,345
Fixed subordinated notes		32		798			740
Trust pass-through securities		33		126			126
Currency revaluation other equity instruments1)				16			(1	)
Hybrid leverage				4,642			4,728
Senior debt3)		37		1,290			1,241
Senior leverage				1,290			1,241
Total gross financial leverage				5,932			5,969
Total capitalization				24,008			21,430
Gross financial leverage ratio				24.7%			27.9%
Fixed Charge Coverage				9.3 x			8.3 x

1  Other equity instruments that are denominated in foreign currencies are, for purpose of calculating hybrid leverage, revalued to the period-end exchange rate.

2  Non-controlling interests are disclosed in the statement of financial position.

3  Senior debt for the gross financial leverage calculation also contains swaps for an amount of EUR (2) million (2020: EUR 0 million).

Schedule of Total Distributable Items

Distributable items	2021			2020
Equity attributable to shareholders based on IFRS as adopted by the EU		24,282			22,815
Non-distributable items:
Share capital		(321	)		(320	)
Legal reserves1)		(9,868	)		(9,697	)
At December 31		14,093			12,797

1  The legal reserves in respect of the foreign currency translation reserve (FCTR), group companies and the positive revaluations in the revaluation reserves, cannot be freely distributed.

Summary of Minimum of Distributable Items under Dutch Law and the Freely Distributable Capital on the Basis of Solvency Requirements

Besides the distributable items under Dutch law, a second restriction on the possibility to distribute dividends stems from Solvency II (Dutch Supervision act).

Distributable reserves	2021		2020
Reserves available for financial surpervision purposes		19,431		18,582
Solvency requirement under the Financial Supervision Act		9,226		9,473
Total distributable reserves on the basis of solvency requirements		10,205		9,109