Investments in joint ventures and associates

12 Months Ended

Dec. 31, 2021

Investments in subsidiaries, joint ventures and associates [abstract]

Disclosure Of Investments In Associates Subsidaries And Joint Venture

25 Investments in joint ventures and associates

	Joint ventures						Associates
	2021			2020			2021			2020
At January 1		1,376			1,983			1,264			363
Additions		61			254			12			59
Disposals		-			(105	)		-			(5	)
Share in net result		265			184			112			111
Share in changes in equity (note 30.6)		25			12			(6	)		7
Impairment reversals / (charges)		-			(4	)		3			(20	)
Dividends		(88	)		(94	)		(39	)		(44	)
Net exchange difference		45			(7	)		2			(28	)
Transfer to / (from) other headings		58			(836	)		(58	)		818
Other		-			(11	)		-			1
At December 31		1,743			1,376			1,289			1,264

In 2021, Aegon amended its agreement related to the investment in MAG Seguros and injected EUR 40 million in the undertaking. Following the amendment the investment required reclassification from Investments in associates to Investments in joint ventures as the level of influence was affected. The transfer to / (from) other headings in 2021 reflect the carrying amount of the investment of EUR 58 million prior to the capital injection of EUR 40 million.

With the exception of a limited number of immaterial venture capital entities, all joint ventures and associates are unlisted and are accounted for using the equity method and are considered to be non-current. The investments in joint ventures and associates include interest in insurance companies that are required to maintain a minimum solvency margin based on local directives. Such restrictions can affect the ability of these joint ventures and associates to transfer funds in the form of cash dividends, or repayment of loans or advances, and therefore, there can be no assurance that these restrictions will not become a limitation in the future. Refer to note 45 Commitments and contingencies for any commitments and contingencies related to investments in joint ventures. There are no unrecognized shares of losses in joint ventures and associates. The financial statements of the principal joint ventures and associates have the same reporting date as the Group. Refer to note 49 Group companies for a listing of the investments in joint ventures and associates and the Group’s percentage holding.

Summarized financial information of joint ventures

The summarized financial information presented in the following table presents the joint ventures on a 100% basis. Aegon considers its investments in Santander Vida Seguros y Reaseguros S.A. (‘Santander Spain Life’) and Aegon Industrial Fund Management Co.Ltd. (‘AIFMC’) as material joint ventures and are therefore presented separately.

	Santander Spain Life						AIFMC						Other Joint ventures
	2021			2020			2021			2020			2021			2020
Summarized statement of financial position
Cash and cash equivalents		20			14			351			227			157			198
Other current assets		130			35			810			423			697			588
Total current assets		150			50			1,161			650			854			785
Non-current assets		1,134			700			204			127			5,574			6,442
Total assets		1,284			750			1,364			777			6,428			7,227
Current financial liabilities excluding trade payables and other provisions		-			-			-			-			7			-
Other current liabilities		126			79			613			360			501			445
Total current liabilities		126			79			613			360			509			445
Non-current financial liabilities excluding trade payables and other provisions		-			-			-			-			183			50
Other non-current liabilities		510			272			-			-			3,921			4,996
Total non-current financial liabilities		510			272			-			-			4,104			5,046
Total liabilities		636			351			613			360			4,613			5,490
Net assets		648			399			752			417			1,816			1,737
Summarized statement of comprehensive income
Revenue		247			357			858			584			1,866			2,058
Results from financial transactions		-			(4	)		-			-			51			20
Depreciation and amortization		(25	)		(18	)		(3	)		(4	)		(21	)		(8	)
Interest income		2			3			8			5			25			8
Interest expense		-			-			-			-			(13	)		-
Profit or loss		61			57			386			252			247			157
Income tax (expense) or result		(12	)		(14	)		(109	)		(71	)		(40	)		36
Post-tax profit or (loss)		48			43			277			181			208			194
Other comprehensive income		(2	)		2			-			-			53			10
Total comprehensive income		47			45			277			181			260			203
Dividends received		-			19			-			33			18			43

For 2021, Aegon Industrial Fund Management Co.Ltd. (‘AIFMC’) is classified as a material joint venture as a result of the growth of the joint venture.

An overview of the summarized financial information of the carrying amount of the joint ventures is as follows:

	Santander Spain Life				AIFMC				Other Joint ventures
	2021		2020		2021		2020		2021		2020
Net assets of joint venture as presented above		648		399		752		417		1,816		1,737
Net assets of joint venture excluding goodwill		568		66		751		416		1,681		1,343
Group share of net assets of joint venture, excluding goodwill		290		34		368		204		857		562
Goodwill on acquisition		80		333		1		1		148		244
Carrying amount		369		366		369		205		1,005		806

Aegon’s group share of net assets of joint ventures, as presented in the table above, is less than Aegon’s share of the net assets as presented in the summarized financial information on a 100% basis, due to the inclusion of third parties in the joint ventures.

The following table includes the summarized financial information of the joint ventures based on the Group’s relative holding.

	Santander Spain Life					AIFMC				Other Joint ventures
	2021			2020		2021		2020		2021		2020
Post-tax profit or loss		25			22		136		89		104		81
Other comprehensive income		(1	)		1		-		-		26		(10	)
Total comprehensive income		24			23		136		89		131		71

Summarized financial information of associates

The summarized financial information presented in the following table presents the material associates on a 100% basis. Aegon considers its investment in Amvest Residential Core Fund as a material associate and is therefore presented below.

	Amvest Residential Core Fund				Other Associates
	2021		2020		2021			2020
Summarized statement of financial position
Current assets		49		34		132			167
Non-current assets		4,380		3,876		426			787
Total assets		4,429		3,910		558			955
Current liabilities		50		55		61			155
Non-current liabilities		921		671		82			255
Total liabilities		971		726		144			410
Net assets		3,458		3,184		414			545
Summarized statement of comprehensive income
Revenue		109		104		595			965
Interest expense		-		-		-			(35	)
Profit or loss		433		281		(76	)		39
Income tax (expense) or result		-		-		-			(30	)
Post-tax profit or (loss)		433		281		(76	)		8
Other comprehensive income		-		-		(13	)		109
Total comprehensive income		433		281		(89	)		117
Dividends received		27		32		35			45

The summarized financial information of associates presented below is based on the Group’s relative holding.

	Amvest Residential Core Fund				Other Associates
	2021		2020		2021			2020
Post-tax profit or loss		126		80		(14	)		23
Other comprehensive income		-		-		(6	)		7
Total comprehensive income		126		80		(20	)		31
Carrying amount		1,020		919		269			345