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Segment information
 12 Months Ended
Dec. 31, 2021
Text block [abstract]  
Segment information
5 Segment information
Aegon’s operating segments are 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. All reportable segments are involved in insurance or reinsurance business, asset management or services related to these activities. The reportable segments are:
¨
   Americas: one operating segment which covers business units in the United States and Brazil, including any of the units’ activities located outside these countries;
¨
   The Netherlands: which covers businesses activities from Aegon the Netherlands;
¨
   United Kingdom: which covers businesses activities from platform business and traditional insurance in the United Kingdom;
¨
   International: one operating segment which covers businesses operating in Hong Kong, Singapore, China, India, Indonesia, Hungary, Poland, Turkey, Romania, Spain and Portugal including any of the units’ activities located outside these countries;
¨
   Asset Management: one operating segment which covers business activities from AAM Global Platforms and Strategic Partnerships;
¨
 
Holding and other activities: one operating segment which includes financing, employee and other administrative expenses of holding companies.
Aegon’s segment information is prepared by consolidating on a proportionate basis Aegon’s joint ventures and associated companies.
Performance Measure
Aegon uses the non-IFRS performance measure operating result. Operating result reflects Aegon’s result before tax from underlying business operations and mainly excludes components that relate to accounting mismatches that are dependent on market volatility, updates to best estimate actuarial and economic assumptions and model updates or events that are considered outside the normal course of business. There is no standardized meaning to these measures under IFRS or any other recognized set of accounting standards.
Aegon believes that its performance measure operating result provides meaningful information about the operating 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 operating result. While many other insurers in Aegon’s peer group present substantially similar performance measures, the performance measures presented in this document may nevertheless differ from the performance measures presented by other insurers.
The reconciliation from operating result to result before tax, being the most comparable IFRS measure, is presented in the tables in this note.
The items that are excluded from operating result as described further below are: fair value items, realized gains or losses on investments, impairment charges/reversals, other income or charges and share in earnings of joint ventures and associates.
Change in naming convention of performance measure
Aegon has changed the naming convention of its primary performance measure to improve alignment with industry practice and the way in which Aegon manages its business. As of 2021, Aegon no longer refers to underlying earnings before tax for segment reporting purposes, instead Aegon refers to Operating result. Furthermore, Aegon introduced a new grouping of non-operating result which is the sum of Fair value items, Realized gains and losses on investments, and Net impairments. Other income / charges remains a separate category outside of Aegon’s operating result.
Change in measurement of performance measure
In addition, Aegon has changed the measurement of its operating result from January 1, 2021. The following changes have been made:
¨
 
The running cost of the US macro hedge related to the variable annuity portfolio is recorded within Operating result instead of in Fair value items. Management views this as a better reflection of Aegon’s operating performance and improves the relevance of Aegon’s operating result.
¨
 
The periodic intangibles unlocking, caused by short term market movements, in the US Life and TLB business is recorded in Fair value items, instead of Operating result, to improve the insight in Aegon’s recurring operating result.
¨
 
Results from run-off businesses, mainly related to US are part of Aegon’s operating result. The results of run-off businesses were previously recorded outside of Aegon’s operating result. Based on management actions executed in prior years the importance of run-off businesses has diminished and continuing to report this as a separate line item is considered no longer relevant.
¨
 
Following the announcement to sell Aegon’s operations in CEE, results from these businesses, previously reported in operating result, are prospectively recorded within Other income / charges.
For segment reporting purposes, the impact of these changes in measurement on full year 2020 was a decrease in Aegon’s consolidated operating result of EUR 19 million, (2019: a decrease of EUR 75 million), as certain losses are no longer reported in Fair value items (2020: EUR 48 million, 2019: 97 million) and results of Run-off businesses are no longer separately reported (2020: EUR 29 million loss, 2019: EUR 22 million loss). There is no impact on Aegon’s net result, shareholders’ equity, dividend per share, or any of the main schedules included in Aegon’s Financial Statements, in any of the reporting periods. Comparative numbers have been restated in Aegon’s segment reporting note, enabling a like for like comparison, with the exception of the reclassification of the results from Aegon’s operations in CEE to Other income / charges which is applied prospectively.
Fair value items
Fair value items include the over- or underperformance of investments and guarantees held at fair value for which management’s best estimate investment return is included in operating result.
In addition, hedge ineffectiveness on hedge transactions, fair value changes on economic hedges without natural offset in earnings and for which no hedge accounting is applied and fair value movements on real estate are included under fair value items.
Certain assets held by Aegon are carried at fair value and managed on a total return basis, with no offsetting changes in the valuation of related liabilities. These include assets such as investments in hedge funds, private equities, real estate (limited partnerships), convertible bonds and structured products. Operating result exclude any over- or underperformance compared to management’s best estimate investment return on assets. Based on current holdings and asset returns, the long-term expected return on an annual basis is 3-10%, depending on asset class, including cash income and market value changes. The expected earnings from these asset classes are net of deferred policy acquisition costs (DPAC) where applicable.
In addition, certain products offered by Aegon Americas contain guarantees and are reported on a fair value basis and include the total return annuities and guarantees on variable annuities. The earnings on these products are impacted by movements in equity markets and risk-free interest rates. Short-term developments in the financial markets may therefore cause volatility in earnings.
The fair value movements of certain guarantees and the fair value change of derivatives that hedge certain risks on these guarantees of Aegon’s businesses in the Netherlands and Japan are excluded from operating result, because management’s best estimate expected return for these guarantees is set at zero. In addition, fair value items include market related results on the loyalty bonus reserves in the United Kingdom. The value of these reserves are directly related to policyholder investments which value is directly impacted by movements in equity and bond markets.
Holding and other activities include certain issued bonds that are held at fair value through profit or loss (FVTPL). The interest rate risk on these bonds is hedged using swaps. The fair value movement resulting from changes in Aegon’s credit spread used in the valuation of these bonds are excluded from operating result and reported under fair value items.
The periodic intangibles unlocking in the US Life and TLB business is recorded in fair value items instead of operating result.
Realized gains or losses on investments
Realized gains or losses on investments includes realized gains and losses on available-for-sale investments, mortgage loans and other loan portfolios.
Impairment charges/(reversals)
Impairment charges/(reversals) include impairments on available-for-sale debt securities, shares including the effect of deferred policyholder acquisition costs, mortgage loans and other loan portfolios at amortized cost, joint ventures and associates. Impairment reversals include reversals on available-for-sale debt securities. For Aegon the Netherlands, the expected impairments on alternative assets classes (e.g. illiquid investments – including consumer loans and catastrophe bonds – and residential real estate) are allocated to operating result before tax in order to present management’s best estimate investment return in operating result before tax. Deviations from the expected impairments are presented as part of impairment charges / (reversals) in non-operating result.
Other income or charges
Other income or charges includes the following:
¨
   Items which cannot be directly allocated to a specific line of business;
¨
   The impact of actuarial and economic assumption and model updates used to support calculations of our liabilities for insurance and investment contracts sold to policyholders and related assets (refer to note 3 Critical accounting estimates and judgement in applying accounting policies); and
¨
   Items that are outside the normal course of business, including restructuring charges.
In the Consolidated income statement, the restructuring charges are included in operating expenses. Actuarial assumption and model updates are recorded in ‘Policyholder claims and benefits’ in the Consolidated income statement.
Share in earnings of joint ventures and associates
Earnings from Aegon’s joint ventures in China, India, the Netherlands, Spain and Portugal, and Aegon’s associates in France, the Netherlands and United Kingdom are reported as operating result.
The following table presents Aegon’s segment results.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                     
Income statement
- Operating result
  
    Americas
    
The
Netherlands
    
United
Kingdom
    
International
    
Asset
Management
    
Holding and
other
activities
    
Eliminations
    
Segment
total
    
Joint ventures
and associates
eliminations
    
Consolidated
  
                     
2021
                                                                                
                     
Operating result before tax
  
 
788
 
  
 
755
 
  
 
184
 
  
 
145
 
  
 
253
 
  
 
(219
) 
  
 
(1
) 
  
 
1,906
 
  
 
42
 
  
 
1,948
 
                     
Fair value items
     698       221       (62 )      (18 )      (1 )      12       3       854       (123 )      730  
                     
Realized gains / (losses) on investments
     313       118       10       2       2       1       (0 )      446       (9 )      437  
                     
Impairment charges
     (19 )      (19 )      -       (0 )      (1 )      (11 )      (0 )      (49 )      (0 )      (49 ) 
                     
Impairment reversals
     33       59       -       1       -       8       -       101       -       101  
                     
Non-operating items
  
 
1,025
 
  
 
378
 
  
 
(51
) 
  
 
(15
) 
  
 
-
 
  
 
11
 
  
 
3
 
  
 
1,352
 
  
 
(132
) 
  
 
1,220
 
                     
Other income / (charges)
     (667 )      (23 )      1       65       (18 )      (138 )      -       (780 )      12       (768 ) 
                     
Result before tax
  
 
1,147
 
  
 
1,110
 
  
 
134
 
  
 
195
 
  
 
235
 
  
 
(344
) 
  
 
2
 
  
 
2,478
 
  
 
(78
) 
  
 
2,400
 
                     
Income tax (expense) / benefit
     (137 )      (276 )      (12 )      (36 )      (65 )      77       (0 )      (449 )      78       (371 ) 
                     
Net result
  
 
1,010
 
  
 
833
 
  
 
122
 
  
 
159
 
  
 
170
 
  
 
(267
) 
  
 
2
 
  
 
2,029
 
  
 
-
 
  
 
2,029
 
                     
Inter-segment operating result
  
 
(20
) 
  
 
(95
) 
  
 
(96
) 
  
 
(31
) 
  
 
191
 
  
 
51
 
                                
                     
Revenues
                                                                                
                     
2021
                                                                                
                     
Life insurance gross premiums
     7,108       1,323       4,613       1,181       -       -       -       14,225       (825 )      13,400  
                     
Accident and health insurance
     1,273       254       3       179       -       -       -       1,709       (67 )      1,643  
                     
General insurance
     -       136       -       432       -       -       -       569       (168 )      401  
                     
Total gross premiums
  
 
8,381
 
  
 
1,713
 
  
 
4,616
 
  
 
1,793
 
  
 
-
 
  
 
-
 
  
 
(0
) 
  
 
16,504
 
  
 
(1,060
) 
  
 
15,444
 
                     
Investment income
     2,910       2,088       1,691       360       12       242       (261 )      7,042       (75 )      6,967  
                     
Fee and commission income
     1,920       300       223       59       800       -       (183 )      3,120       (335 )      2,785  
                     
Other revenues
     11       -       -       2       2       12       -       27       (15 )      13  
                     
Total revenues
  
 
13,222
 
  
 
4,101
 
  
 
6,531
 
  
 
2,215
 
  
 
814
 
  
 
254
 
  
 
(444
) 
  
 
26,693
 
  
 
(1,484
) 
  
 
25,209
 
                     
Inter-segment revenues
  
 
1
 
  
 
14
 
  
 
-
 
  
 
-
 
  
 
182
 
  
 
247
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
The Americas recorded other charges of EUR 667 million in 2021 mainly due to a one-time charge as a result of management actions to release capital and increase the predictability of capital generation from the US variable annuity business and unfavorable impacts from model and assumption updates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income statement
-Operating
result
   Americas     The
Netherlands		     United
Kingdom		     International     Asset
Management		    
Holding and
other
activities
     Eliminations    
Segment
total
     Joint ventures
and associates
eliminations		    
Consolidated
  
                     
2020
                                                                                
                     
Operating result
before tax
  
792
    
665
    
144
    
164
    
182
    
(237)
    
1
    
1,710
    
31
    
1,741
  
                     
Fair value items
     (448 )      (230 )      (2 )      (7 )      22       (36 )      -       (701 )      (87 )      (788 ) 
                     
Realized gains / (losses) on investments
     93       14       -       46       1       (3 )      -       150       (8 )      142  
                     
Impairment charges
     (173 )      (50 )      -       (16 )      (1 )      (25 )      -       (265 )      1       (264 ) 
                     
Impairment reversals
     27       1       -       -       -       -       -       28       -       28  
                     
Non-operating items
  
 
(501
) 
  
 
(265
) 
  
 
(1
) 
  
 
22
 
  
 
22
 
  
 
(65
) 
  
 
-
 
  
 
(788
) 
  
 
(94
) 
  
 
(881
) 
                     
Other income / (charges)
     (1,110 )      78       (68 )      (1 )      (8 )      (130 )      -       (1,239 )      15       (1,224 ) 
                     
Result before tax
  
 
(819
) 
  
 
478
 
  
 
74
 
  
 
186
 
  
 
195
 
  
 
(433
) 
  
 
1
 
  
 
(317
) 
  
 
(47
) 
  
 
(364
) 
                     
Income tax (expense) / benefit
     284       (107 )      (7 )      (22 )      (44 )      78       (0 )      181       47       229  
                     
Net result
  
 
(535
) 
  
 
371
 
  
 
67
 
  
 
164
 
  
 
151
 
  
 
(355
) 
  
 
1
 
  
 
(135
) 
  
 
-
 
  
 
(135
) 
                     
Inter-segment operating result
     (40 )      (87 )      (86 )      (35 )      193       62                                  
                     
Revenues
                                                                                
                     
2020
                                                                                
                     
Life insurance gross premiums
     7,105       1,619       4,833       1,095       -       4       (3 )      14,654       (726 )      13,929  
                     
Accident and health insurance
     1,380       245       25       193       -       -       -       1,844       (59 )      1,784  
                     
General insurance
     -       130       -       388       -       -       (0 )      519       (132 )      386  
                     
Total gross premiums
  
 
8,485
 
  
 
1,994
 
  
 
4,858
 
  
 
1,677
 
  
 
-
 
  
 
5
 
  
 
(3
) 
  
 
17,016
 
  
 
(917
) 
  
 
16,099
 
                     
Investment income
     2,986       2,083       1,795       362       7       261       (281 )      7,212       (63 )      7,149  
                     
Fee and commission income
     1,653       255       194       50       750       (9 )      (180 )      2,713       (308 )      2,405  
                     
Other revenues
     7       -       -       1       2       3       -       14       (10 )      4  
                     
Total revenues
  
 
13,131
 
  
 
4,332
 
  
 
6,847
 
  
 
2,091
 
  
 
759
 
  
 
260
 
  
 
(465
) 
  
 
26,955
 
  
 
(1,298
) 
  
 
25,657
 
                     
Inter-segment revenues
     1       21       -       -       188       264    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
The Americas recorded other charges of EUR 1,110 million in 2020 mainly due to unfavorable impacts from model and assumption changes. In addition, the Americas incurred other charges due to a valuation allowance related to the ongoing rehabilitation process of a reinsurer, the restructuring of captives, and a provision for a settlement of class action litigation related to monthly deduction rate adjustments on certain universal life policies.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income statement
- Operating result
   Americas     The
Netherlands		     United
Kingdom		     International     Asset
Management		     Holding and
other
activities		     Eliminations    
Segment
total
     Joint ventures
and associates
eliminations		    
Consolidated
  
                     
2019
                                                                                
                     
Operating result before tax
  
 
1,041
 
  
 
648
 
  
 
139
 
  
 
154
 
  
 
139
 
  
 
(228
) 
  
 
1
 
  
 
1,894
 
  
 
50
 
  
 
1,944
 
                     
Fair value items
     378       (741 )      (131 )      (7 )      -       (4 )      (0 )      (504 )      (88 )      (592 ) 
                     
Realized gains / (losses) on investments
     125       240       3       36       -       1       -       405       (2 )      403  
                     
Impairment charges
     (54 )      (39 )      -       (1 )      -       (10 )      -       (104 )      -       (104 ) 
                     
Impairment reversals
     68       5       -       1       -       -       -       73       -       73  
                     
Non-operating items
  
 
517
 
  
 
(535
) 
  
 
(128
) 
  
 
29
 
  
 
-
 
  
 
(13
) 
  
 
-
 
  
 
(129
) 
  
 
(90
) 
  
 
(220
) 
                     
Other income / (charges)
     (156 )      (1 )      (38 )      15       (7 )      (95 )      -       (281 )      -       (281 ) 
                     
Result before tax
  
 
1,403
 
  
 
121
 
  
 
(27
) 
  
 
198
 
  
 
133
 
  
 
(335
) 
  
 
1
 
  
 
1,493
 
  
 
(40
) 
  
 
1,453
 
                     
Income tax (expense) / benefit
     (220 )      (27 )      (7 )      (33 )      (36 )      65       -       (257 )      40       (217 ) 
                     
Net result
  
 
1,183
 
  
 
94
 
  
 
(34
) 
  
 
165
 
  
 
97
 
  
 
(270
) 
  
 
1
 
  
 
1,236
 
  
 
-
 
  
 
1,236
 
                     
Inter-segment operating result
     (61 )      (105 )      (87 )      (20 )      193       79                                  
                     
Revenues
                                                                                
                     
2019
                                                                                
                     
Life insurance gross premiums
     7,279       1,765       6,282       1,289       -       11       (8 )      16,617       (691 )      15,926  
                     
Accident and health insurance
     1,416       228       28       201       -       -       -       1,872       (50 )      1,823  
                     
General insurance
     -       130       -       382       -       1       (1 )      512       (122 )      390  
                     
Total gross premiums
  
 
8,694
 
  
 
2,123
 
  
 
6,309
 
  
 
1,872
 
  
 
-
 
  
 
12
 
  
 
(9
) 
  
 
19,002
 
  
 
(864
) 
  
 
18,138
 
                     
Investment income
     3,172       2,224       1,830       379       5       269       (284 )      7,595       (64 )      7,531  
                     
Fee and commission income
     1,757       237       197       109       627       -       (187 )      2,740       (218 )      2,523  
                     
Other revenues
     8       -       -       2       1       5       -       16       (10 )      6  
                     
Total revenues
  
 
13,631
 
  
 
4,583
 
  
 
8,337
 
  
 
2,362
 
  
 
633
 
  
 
286
 
  
 
(480
) 
  
 
29,352
 
  
 
(1,155
) 
  
 
28,197
 
                     
Inter-segment revenues
     1       12       -       -       187       280    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
The Group uses operating result in its segment reporting as an important indicator of its financial performance. The reconciliation from operating result to result before tax, being the most comparable IFRS measure, is presented in the table below. For those items that cannot be directly reconciled to the respective notes, the explanation is provided below the table. Aegon believes that operating result, together with the other information included in this report, provides a meaningful measure for the investing public to evaluate Aegon’s business relative to the businesses of its peers.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         
Presentation Non-Operating result
   
Note 
     
            2021
                 2020                 2019  
Operating result
            
 
1,906
 
  
 
1,710
 
  
 
1,894
 
         
Elimination of share in earnings of joint ventures and associates
               42       31       50  
         
Premium income
   
 
6 
 
      (5 )      4       (1 ) 
         
Rental income
   
 
7 
 
      (71 )      (68 )      (76 ) 
         
Dividend income
   
 
7 
 
      76       (40 )      9  
         
Fee and commission income
   
 
8 
 
      30       (5 )      -  
         
Recovered claims and benefits
   
 
9 
 
      (31 )      (143 )      7  
         
Change in valuation of reinsurance ceded
   
 
9 
 
      (43 )      86       -  
         
Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives
   
 
10 
 
      (4 )      (421 )      (89 ) 
         
Net fair value change on borrowings and other financial liabilities
   
 
10 
 
      (13 )      2       7  
         
Realized gains and losses on financial investments
   
 
10 
 
      463       132       399  
         
Gains and (losses) on investments in real estate
   
 
10 
 
      253       74       317  
         
Net fair value change of derivatives
   
 
10 
 
      (471 )      613       163  
         
Other income
   
 
11 
 
      77       68       200  
         
Benefits and claims paid life
   
 
12 
 
      (217 )      -       -  
         
Change in valuation of liabilities for insurance contracts
   
 
12 
 
      994       (1,422 )      (1,061 ) 
         
Change in valuation of liabilities for investment contracts
   
 
12 
 
      (8 )      (7 )      (13 ) 
         
Policyholder claims and benefits - Other
   
 
12 
 
      38       19       50  
         
Commissions and expenses
   
 
14 
 
      (715 )      (450 )      (318 ) 
         
Impairment (charges) reversals
   
 
15 
 
      53       (318 )      (105 ) 
         
Interest charges and related fees
   
 
16 
 
      -       (82 )      21  
         
Other charges
   
 
17 
 
      (37 )      (150 )      (1 ) 
         
Results of CEE businesses which were previously reported in operating results
               85       -       -  
         
Result before tax
   
 
 
 
   
 
2,400
 
  
 
(364
)
 
  
 
1,453
 
 
¨
   Net fair value change of general account financial investments at fair value through profit or loss, other than derivatives is reported as part of the respective line in note 10 and reflects the over- or underperformance of investments and guarantees held at fair value for which the expected long-term return is included in operating result.
¨
   Net fair value change of derivatives is reported as part of the respective line in note 10 and includes: 1) the over- or underperformance of derivatives of EUR 8 million loss (2020: EUR 38 million loss, 2019: EUR 34 million gain) for which the expected long-term return is included in operating result; 2) Net fair value change on economic hedges where no hedge accounting is applied of EUR 466 million loss (2020: EUR 652 million gain, 2019: EUR 130 million gain); 3) Ineffective portion of hedge transactions to which hedge accounting is applied of EUR 2 million gain (2020: EUR nil million, 2019: EUR
 
1 million gain).
¨
   Net foreign currency gains and (losses) are reported as part of the respective line in note 10.
¨
   Benefits and claims paid life relate to the lump-sum buy-out program for certain variable annuities in the Americas and is reported as part of the respective line in note 12.
¨
   Change in valuation of liabilities for insurance contracts is reported as part of the respective line in note 12.
¨
   Change in valuation of liabilities for investment contracts is reported as part of the respective line in note 12.
¨
   Policyholder claims and benefits - Other are reported as part of the ‘Other’ line in note 12 and is related to policyholder tax.
¨
   Commissions and expenses include: 1) Restructuring charges of EUR 240 million (2020: EUR 266 million charge, 2019: EUR 220 million charge) which are reported as part of Employee and Administration expenses lines in note 14; 2) Amortization of deferred expenses of EUR 260 million income (2020: income of EUR 35 million, 2019: charge of EUR 32 million) which is reported as part of the respective line in note 14. This is offset against realized gains and losses and impairments on financial investments; 3) Amortization of VOBA and future servicing rights of EUR 87 million charge (2020: income of EUR 20 million; 2019: charge of EUR 5 million) which is reported as part of the respective line in note 14. Commissions and expenses include a DPAC/VOBA fair value adjustment of EUR 51 million gain (2020: gain of EUR 159 million; 2019: gain of EUR 151 million).
¨
   Impairment (charges) reversals include: 1) Impairment charges and reversals on financial assets, excluding receivables of EUR 45 million reversal (2020: charge of EUR 266 million, 2019: charge of EUR 60 million) as shown in note 15; 2) Impairment charges and reversals on non-financial assets and receivables of EUR 60 million charge (2020: EUR 128 million charge; 2019: EUR 109 million charge) reported as part of the respective line in note 15.
¨
   There are no interest charges and related fees that are classified for segment reporting purposes as non-operating results.
Impact from assumption and model updates
The 2021 assumption changes and model updates resulted in a negative impact of EUR 298 million and mainly relates to Aegon’s businesses in the Americas and the Netherlands. Assumption changes and model updates in the Americas led to a net negative impact of EUR 250 million. This mainly reflects a charge of EUR 123 million related to an update of the minimum surrender rate assumption for variable annuities with guaranteed lifetime withdrawal benefits from 2% to 1.5% to reflect latest portfolio and industry experience. Assumption changes and model updates in the Netherlands led to a negative impact of EUR 52 million, mainly related to adverse impacts from a more granular modeling driven by the conversion of the administration of defined benefit pensions to TKP. This was partly offset by the favorable impact of model updates relating to interest guarantees and indexation assumptions for certain pension products.
The 2020 assumption changes and model updates amounted to a negative impact of EUR 580 million and mainly relates to Aegon’s businesses in the Americas and the Netherlands. Assumption changes and model updates in the Americas led to a net negative impact of EUR 805 million. This reflects a charge of EUR 460 million related to the lowering the long-term interest rate assumption from 4.25% to 2.75% and the corresponding adjustment of the separate account bond return assumptions. Non-economic assumption changes resulted in a charge of EUR 345 million, mainly related to Universal Life premium persistency and an increase in mortality rate assumptions, as well as lowering the morbidity improvement assumption for Long-Term Care from 1.5% to 0.75% per year for the next 15 years. Assumption changes and model updates in the Netherlands led to a favorable impact of EUR 225 million mainly related to favorable longevity assumption changes, partially offset by adverse impacts from mortgage prepayment model and expense assumption updates.
The 2019 assumption changes and model updates amounted to a negative impact of EUR 196 million and mainly relates to Aegon’s businesses in the Americas and the Netherlands. Assumption changes and model updates in the Americas led to a net negative impact of EUR 64 million mainly driven by updates to Universal Life products for surrender, lapse and mortality to reflect actual experience, partially offset by gains driven by updates to the annuitization of Variable Deferred Annuities Guaranteed Minimum Income Benefit and to the returns on Equity-Index Universal Life. In the second half of 2019, a negative impact of EUR 75 million resulted mostly from expenses assumption updates in the Americas. Assumption changes and model updates in the Netherlands led to negative impact of EUR 57 million mainly related to model enhancements and expense assumption updates which more than offset favorable longevity assumption changes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other selected income statement items
    Americas     The
Netherlands		     United
Kingdom		      International      Asset
Management		      Holding and
other activities		    
Total
  
               
2021
                                                            
               
Amortization of deferred expenses, VOBA and future servicing rights
      929       -       113        61        -        -       1,103  
               
Depreciation
      56       20       6        15        2        1       99  
               
Impairment charges / (reversals) on financial assets, excluding receivables
      (23 )      (14 )      -        -        -        (8 )      (45 ) 
               
Impairment charges / (reversals) on non- financial assets and receivables
      37       12       -        -        1        11       60  
               
2020
                                                            
               
Amortization of deferred expenses, VOBA and future servicing rights
      637       -       119        97        -        -       854  
               
Depreciation
      56       20       9        12        2        1       101  
               
Impairment charges / (reversals) on financial assets, excluding receivables
      151       86       -        15        -        11       262  
               
Impairment charges / (reversals) on non- financial assets and receivables
      72       21       17        -        4        14       128  
               
2019
                                                            
               
Amortization of deferred expenses, VOBA and future servicing rights
      687       4       117        66        -        -       875  
               
Depreciation
      44       18       12        11        1        2       87  
               
Impairment charges / (reversals) on financial assets, excluding receivables
      (12 )      72       -        -        -        -       60  
               
Impairment charges / (reversals) on non- financial assets and receivables
      3       94       -        3        -        10       109  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of employees
          Americas      The
    Netherlands		      United
    Kingdom		          International     
Asset
    Management
     
Holding and
    other activities
     
            Total   
               
2021
                                                               
               
Number of employees - headcount
      7,675        3,534        2,476        6,590        1,675        321        22,271   
               
Of which Aegon’s share of employees in joint ventures and associates
      733        -        59        3,245        191        -        4,228  
               
2020
                                                               
               
Number of employees - headcount
      7,960        3,521        2,307        6,598        1,527        409        22,322  
               
Of which Aegon’s share of employees in joint ventures and associates
      669        -        47        3,294        183        -        4,193  
               
2019
                                                               
               
Number of employees - headcount
      8,570        3,582        2,261        7,393        1,535        416        23,757  
               
Of which Aegon’s share of employees in joint ventures and associates
      651        -        62        4,276        173        -        5,162  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                 
Summarized assets and liabilities
per segment
   
Americas
     
The
Netherlands
     
United
Kingdom
     
International
     
Asset
Management
     
Holding and
other
activities
     
Eliminations
    
            Total        
                 
2021
                                                                       
                 
Assets
                                                                       
                 
Cash and Cash equivalents
      1,127        3,718        210        282        311        1,242        -       6,889   
                 
Investments
      80,938        66,384        1,876        8,315        296        21        -       157,831  
                 
Investments for account of policyholders
      115,596        25,673        108,713        974        -        -        (4 )      250,953  
                 
Investments in joint ventures
      56        343        -        936        368        39        -       1,743  
                 
Investments in associates
      -        1,103        9        18        151        20        (12 )      1,289  
                 
Deferred expenses
      9,052        235        825        391        -        -        -       10,503  
                 
Other assets
      27,268        9,318        2,125        2,064        199        31,733        (33,663 )      39,044  
                 
Total assets
   
 
234,037
 
   
 
106,775
 
   
 
113,758
 
   
 
12,979
 
   
 
1,326
 
   
 
33,056
 
   
 
(33,679
) 
  
 
468,252
 
                 
Liabilities
                                                                       
                 
Insurance contracts
      74,967        40,547        1,490        9,028        -        -        (1,611 )      124,422  
                 
Insurance contracts for account of policyholders
      83,316        25,294        39,955        758        -        -        -       149,323  
                 
Investment contracts
      9,804        11,767        194        2        -        -        -       21,767  
                 
Investment contracts for account of policyholders
      32,280        2,273        69,819        220        -        -        -       104,592  
                 
Other liabilities
      17,382        19,875        799        518        540        6,685        (4,022 )      41,776  
                 
Total liabilities
   
 
217,750
 
   
 
99,757
 
   
 
112,257
 
   
 
10,526
 
   
 
540
 
   
 
6,685
 
   
 
(5,633
) 
  
 
441,881
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summarized assets and liabilities per
segment
      Americas      The
  Netherlands		      United
  Kingdom		        International      Asset
  Management		        Holding and
other
activities		        Eliminations    
Total   
                 
2020
                                                                       
                 
Assets
                                                                       
                 
Cash and Cash equivalents
      903        5,689        257        211        374        938        -       8,372  
                 
Investments
      77,431        68,561        1,994        8,238        208        108        -       156,541   
                 
Investments for account of policyholders
      104,374        25,603        93,240        959        -        -        (3 )      224,172  
                 
Investments in joint ventures
      -        327        -        846        204        -        -       1,376  
                 
Investments in associates
      60        1,004        8        35        151        21        (15 )      1,264  
                 
Deferred expenses
      7,555        136        819        289        -        -        -       8,799  
                 
Other assets
      26,552        13,642        2,664        1,905        171        33,252        (34,896 )      43,290  
                 
Total assets
   
 
216,875
 
   
 
114,962
 
   
 
98,982
 
   
 
12,482
 
   
 
1,109
 
   
 
34,319
 
   
 
(34,914
) 
  
 
443,814
 
                 
Liabilities
                                                                       
                 
Insurance contracts
      69,392        44,242        1,458        8,542        -        -        (1,488 )      122,146  
                 
Insurance contracts for account of policyholders
      76,506        25,085        33,078        772        -        -        -       135,441  
                 
Investment contracts
      8,156        12,732        185        2        -        -        -       21,075  
                 
Investment contracts for account of policyholders
      27,868        2,473        61,092        191        -        -        -       91,624  
                 
Other liabilities
      19,265        24,249        1,614        573        515        9,658        (7,007 )      48,867  
                 
Total liabilities
   
 
201,188
 
   
 
108,780
 
   
 
97,427
 
   
 
10,080
 
   
 
515
 
   
 
9,658
 
   
 
(8,495
) 
  
 
419,153
 
Amounts included in the tables on investments are presented on an IFRS basis, which means that investments in joint ventures and associates are not consolidated on a proportionate basis. Instead, these investments are included on a single line using the equity method of accounting.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                 
Investments
  
Americas
    
The
  Netherlands
    
United
  Kingdom
    
  International
    
Asset
  Management
    
  Holding and
other
activities
    
  Eliminations
    
Total      
                 
2021
                                                                
                 
Shares
     493       1,410       29       72       9       1       -       2,015   
                 
Debt securities
     61,014       26,951       1,159       8,060       11       -       -       97,195  
                 
Loans
     11,352       35,358       -       93       -       20       -       46,823  
                 
Other financial assets
     8,040       79       687       73       276       -       -       9,155  
                 
Investments in real estate
     39       2,588       -       16       -       -       -       2,643  
                 
Investments general account
  
 
80,938
 
  
 
66,384
 
  
 
1,876
 
  
 
8,315
 
  
 
296
 
  
 
21
 
  
 
-
 
  
 
157,831
 
                 
Shares
     -       9,078       20,221       243       -       -       (4 )      29,539  
                 
Debt securities
     -       12,044       7,649       128       -       -       -       19,821  
                 
Unconsolidated investment funds
     115,596       1,059       74,698       597       -       -       -       191,950  
                 
Other financial assets
     -       3,493       5,581       6       -       -       -       9,080  
                 
Investments in real estate
     -       -       563       -       -       -       -       563  
                 
Investments for account of policyholders
  
 
115,596
 
  
 
25,673
 
  
 
108,713
 
  
 
974
 
  
 
-
 
  
 
-
 
  
 
(4
) 
  
 
250,953
 
                 
Investments on balance sheet
     196,534       92,058       110,589       9,288       296       21       (4 )      408,784  
                 
Off-balance sheet investments third parties
     240,248       7,711       151,097       2,300       212,779       -       -       614,136  
                 
Total revenue-generating investments
  
 
436,782
 
  
 
99,769
 
  
 
261,687
 
  
 
11,589
 
  
 
213,076
 
  
 
21
 
  
 
(4
) 
  
 
1,022,920
 
                 
Investments
                                                                
                 
Available-for-sale
     65,694       24,443       1,299       8,191       257       -       -       99,884  
                 
Loans
     11,352       35,358       -       93       -       20       -       46,823  
                 
Financial assets at fair value through profit or loss
     119,450       29,669       108,727       987       40       1       (4 )      258,871  
                 
Investments in real estate
     39       2,588       563       16       -       -       -       3,206  
                 
Total investments on balance sheet
  
 
196,534
 
  
 
92,058
 
  
 
110,589
 
  
 
9,288
 
  
 
296
 
  
 
21
 
  
 
(4
) 
  
 
408,784
 
                 
Investments in joint ventures
     56       343       -       936       368       39       -       1,743  
                 
Investments in associates
     -       1,103       9       18       151       20       (12 )      1,289  
                 
Other assets
     37,447       13,271       3,160       2,736       510       32,975       (33,663 )      56,436  
                 
Consolidated total assets
  
 
234,037
 
  
 
106,775
 
  
 
113,758
 
  
 
12,979
 
  
 
1,326
 
  
 
33,056
 
  
 
(33,679
) 
  
 
468,252
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
   Americas     The
  Netherlands		     United
  Kingdom		       International
1)
     Asset
  Management		     Holding
  and other
activities		       Eliminations    
Total   
                 
2020
                                                                
                 
Shares
     442       1,376       34       74       9       44       -       1,979  
                 
Debt securities
     59,419       30,880       1,077       7,926       48       1       -       99,350   
                 
Loans
     10,477       33,882       -       120       -       40       -       44,519  
                 
Other financial assets
     7,056       91       883       102       152       23       -       8,308  
                 
Investments in real estate
     37       2,331       -       16       -       -       -       2,385  
                 
Investments general account
  
 
77,431
 
  
 
68,561
 
  
 
1,994
 
  
 
8,238
 
  
 
208
 
  
 
108
 
  
 
-
 
  
 
156,541
 
                 
Shares
     -       8,227       16,877       187       -       -       (3 )      25,288  
                 
Debt securities
     -       12,150       7,579       156       -       -       -       19,885  
                 
Unconsolidated investment funds
     104,374       706       63,084       613       -       -       -       168,777  
                 
Other financial assets
     -       4,520       5,232       3       -       -       -       9,755  
                 
Investments in real estate
     -       -       467       -       -       -       -       467  
                 
Investments for account of policyholders
  
 
104,374
 
  
 
25,603
 
  
 
93,240
 
  
 
959
 
  
 
-
 
  
 
-
 
  
 
(3
) 
  
 
224,172
 
                 
Investments on balance sheet
     181,805       94,164       95,234       9,197       208       108       (3 )      380,713  
                 
Off-balance sheet investments third parties
     215,216       6,144       119,347       6,752       192,098       -       (336 )      539,220  
                 
Total revenue-generating investments
  
 
397,021
 
  
 
100,308
 
  
 
214,580
 
  
 
15,948
 
  
 
192,307
 
  
 
108
 
  
 
(339
) 
  
 
919,933
 
                 
Investments
                                                                
                 
Available-for-sale
     63,864       25,972       1,494       8,088       134       28       -       99,580  
                 
Loans
     10,477       33,882       -       120       -       40       -       44,519  
                 
Financial assets at fair value through profit or loss
     107,427       31,979       93,272       973       74       40       (3 )      233,762  
                 
Investments in real estate
     37       2,331       467       16       -       -       -       2,853  
                 
Total investments on balance sheet
  
 
181,805
 
  
 
94,164
 
  
 
95,234
 
  
 
9,197
 
  
 
208
 
  
 
108
 
  
 
(3
) 
  
 
380,713
 
                 
Investments in joint ventures
     (0 )      327       -       846       204       (0 )      -       1,376  
                 
Investments in associates
     60       1,004       8       35       151       21       (15 )      1,264  
                 
Other assets
     35,010       19,467       3,740       2,405       545       34,190       (34,896 )      60,461  
                 
Consolidated total assets
  
 
216,875
 
  
 
114,962
 
  
 
98,982
 
  
 
12,482
 
  
 
1,109
 
  
 
34,319
 
  
 
(34,914
) 
  
 
443,814