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Discontinued operations (Tables)
 12 Months Ended
Dec. 31, 2022
Statement [LineItems]  
Summary of Borrowings
 
     
                            2022  
                                  2021    
Capital funding
      1,245          1,292    
Operational funding
      2,806          8,369    
At December 31
   
 
4,051  
 
   
 
9,661  
 
     
Current
      1,150          824    
Non-current
      2,901          8,837    
     
Fair value of borrowings
      4,114          10,171    
Discontinued operations [member]  
Statement [LineItems]  
Summary of Income statement of discontinued operations
 
                                                                                                       
       
Amounts in EUR millions
  
            2022
    
            2021
    
            2020
  
Discontinued operations
                        
       
Premium income
  
 
1,569
 
  
 
1,713
 
  
 
1,994
 
       
Investment income
  
 
1,725
 
  
 
2,074
 
  
 
2,062
 
       
Fee and commission income
  
 
346
 
  
 
331
 
  
 
283
 
       
Other revenues
  
 
-
 
  
 
-
 
  
 
-
 
       
Total revenues
  
 
3,640
 
  
 
4,118
 
  
 
4,339
 
       
Income from reinsurance ceded
  
 
38
 
  
 
26
 
  
 
(100
) 
       
Results from financial transactions
  
 
(9,231
) 
  
 
(444
) 
  
 
3,435
 
       
Other income
  
 
23
 
  
 
27
 
  
 
6
 
       
Total income
  
 
(5,529
) 
  
 
3,727
 
  
 
7,679
 
       
Premiums paid to reinsurers
  
 
112
 
  
 
99
 
  
 
63
 
       
Policyholder claims and benefits
  
 
(8,824
) 
  
 
1,755
 
  
 
6,140
 
       
Profit sharing and rebates
  
 
4
 
  
 
7
 
  
 
-
 
       
Commissions and expenses
  
 
739
 
  
 
698
 
  
 
730
 
       
Impairment charges / (reversals)
  
 
(0
) 
  
 
(2
) 
  
 
107
 
       
Interest charges and related fees
  
 
85
 
  
 
89
 
  
 
99
 
       
Other charges
  
 
10
 
  
 
3
 
  
 
46
 
       
Total charges
  
 
(7,874
) 
  
 
2,649
 
  
 
7,185
 
       
Result from discontinued operations before share in profit / (loss) of joint ventures, associates and tax
  
 
2,344
 
  
 
1,078
 
  
 
494
 
       
Share in profit / (loss) of joint ventures
  
 
37
 
  
 
33
 
  
 
19
 
       
Share in profit / (loss) of associates
  
 
15
 
  
 
127
 
  
 
80
 
       
Result before tax from discontinued operations
  
 
2,396
 
  
 
1,238
 
  
 
593
 
       
Income tax (expense) / benefit
  
 
(1,000
) 
  
 
(276
) 
  
 
(107
) 
       
Result after tax from discontinued operations
  
 
1,396
 
  
 
960
 
  
 
487
 
       
Impairment loss on remeasurement of the disposal group
  
 
(1,775
) 
  
 
-
 
  
 
-
 
       
Net result from discontinued operations after remeasurement
  
 
(379
) 
  
 
960
 
  
 
487
 
Summary of statement of comprehensive income
 
     
                        
      
                        
      
                        
  
       
Amounts in EUR millions
  
             2022
    
                2021
    
              2020
  
       
Net result from discontinued operations
  
 
(379
) 
  
 
960
 
  
 
487
 
       
Items that will not be reclassified to profit or loss:
                        
       
Changes in revaluation reserve real estate held for own use
  
 
-
 
  
 
1
 
  
 
-
 
       
Remeasurements of defined benefit plans
  
 
948
 
  
 
156
 
  
 
(285
) 
       
Income tax relating to items that will not be reclassified
  
 
(245
) 
  
 
(24
) 
  
 
126
 
       
Items that may be reclassified subsequently to profit or loss:
                        
       
Gains / (losses) on revaluation of
available-for-sale
investments
  
 
(2,110
) 
  
 
155
 
  
 
21
 
       
(Gains) / losses transferred to income statement on disposal and impairment of
available-for-sale
investments
  
 
185
 
  
 
(114
) 
  
 
(13
) 
       
Equity movements of joint ventures
  
 
-
 
  
 
-
 
  
 
-
 
       
Equity movements of associates
  
 
2
 
  
 
(1
) 
  
 
2
 
       
Income tax relating to items that may be reclassified
  
 
497
 
  
 
(18
) 
  
 
(27
) 
       
Other
  
 
-
 
  
 
1
 
  
 
-
 
       
Total other comprehensive income / (loss) from discontinued operations
  
 
(723
) 
  
 
156
 
  
 
(176
) 
       
Total comprehensive income / (loss) from discontinued operations
  
 
(1,102
) 
  
 
1,117
 
  
 
310
 
Summary of calculation regarding the IFRS 5 requirement to value the discontinued operations at the lower of fair value and carrying amount immediately prior to the time of classification as held for sale
 
Amounts in EUR millions   
          2022   
Net cash receivable after costs to sell
      2,175   
   
Fair value of 29.99% share in a.s.r.
1)
     2,700   
   
Fair value less costs to sell
      4,875   
   
Carrying amount of Aegon the Netherlands
2)
     7,591   
   
Fair value less costs to sell minus carrying amount
   
 
(2,716)
 
   
Assets in scope for impairment per December 31, 2022
      1,775   
   
Impairment loss recognized in 2022
   
 
1,775 
 
   
Impairment to be recognized upon the completion of the sale
   
 
941 
 
 
1
 
Based on the closing price of a.s.r.’s shares on December 31, 2022
2
 
The carrying amount of Aegon the Netherlands includes contingent payables and receivables between Aegon NV and Aegon NL that will be recognized prior to the closing date
Summary of details on cashflow from discontinued operations
The table below shows details on cashflow from discontinued operations.
 
Amounts in EUR millions  
                2022
                     2021                     2020    
       
Net cash inflow (outflow) from operating activities
     4,646       (167 )      (5,614)   
       
Net cash inflow (outflow) from investing activities
     (4 )      31       (23)   
       
Net cash inflow (outflow) from financing activities
     (3,275 )      (1,835 )      1,700    
       
Net cash inflow (outflow) from discontinued operations
  
 
1,367
 
  
 
(1,972
) 
  
 
(3,937) 
 
Summary of assets and liabilities were reclassified as held for sale in relation to the discontinued operation
The below table shows the assets held for sale and liabilities held for sale as at December 31, 2022.
 
Amounts in EUR millions   
          2022    
   
Assets
         
   
Cash and cash equivalents
      5,085  
   
Investments
      55,496  
   
Investments for account of policyholders
      19,097  
   
Derivatives
      8,394  
   
Investments in joint ventures
      -  
   
Investments in associates
      -  
   
Reinsurance assets
      79  
   
Defined benefit assets
      -  
   
Deferred tax assets
      -  
   
Deferred expenses
      212  
   
Other assets and receivables
      1,388  
   
Intangible assets
      -  
   
Total assets held for sale
   
 
89,752
 
   
Liabilities
         
   
Insurance contracts
      31,480  
   
Insurance contracts for account of policyholders
      19,577  
   
Investment contracts
      12,179  
   
Investment contracts for account of policyholders
      1,396  
   
Derivatives
      9,239  
   
Borrowings
      5,227  
   
Provisions
      52  
   
Defined benefit liabilities
      2,462  
   
Deferred gains
      -  
   
Deferred tax liabilities
      845  
   
Other liabilities
      1,665  
   
Accruals
      218  
   
Total liabilities held for sale
   
 
84,339
 
Summary of fair value of the classes of financial assets
 
           
2022
  
       
Financial assets at fair value
         
Fair value at the end of the
reporting period
    
Change in fair value during the
reporting period
  
       
Shares
1)
    SPPI                           -       -  
       
      Other       119       (7 ) 
       
Debt securities
     SPPI       14,106       (4,098 ) 
       
      Other       1,413       (166 ) 
       
Mortgage loans
     SPPI       28,477       (5,163 ) 
       
      Other       -       -  
       
Private loans
     SPPI       3,931       (1,081 ) 
       
      Other       38       -  
       
Other financial assets
     SPPI       -       -  
       
 
     Other       1,368       145  
       
At December 31
  
 
 
 
  
 
49,452
 
  
 
(10,370
) 
 
1
 
The SPPI-compliant shares include preferred equity instruments.
Summary of SPPI compliant financial assets at carrying value
The table below details the credit risk rating grades for Aegon the Netherlands, as of December 31, 2022, for financial assets with cash flows that are SPPI, excluding any financial assets that meet the definition of held for trading in IFRS 9, or that are managed and whose performance is evaluated on a fair value basis. The table shows the carrying value of those financial assets applying IAS 39 (in the case of financial assets measured at amortized cost, before adjusting for any impairment allowances).
 
SPPI compliant financial assets at
carrying value
           AAA             AA             A             BBB             BB             B         CCC or
lower		     Not
Rated		         Total    
                   
2022
                                                                        
                   
Debt securities – Carried at fair value
     8,521       2,545       1,387       1,628       26       -       -       -       14,106    
                   
Mortgage loans – Carried at amortized cost
     -       -       -       -       -       -       -       31,430       31,430    
                   
Private loans – Carried at amortized cost
     2,622       253       195       1,025       3       -       -       349       4,447    
                   
At December 31
  
 
11,143
 
  
 
2,797
 
  
 
1,582
 
  
 
2,653
 
  
 
29
 
  
 
-
 
  
 
-
 
  
 
31,779
 
  
 
49,983
 
Summary of financial assets are categorized by asset class with a carrying amount and fair value measured in accordance with IAS 39 measurement requirements The financial assets are categorized by asset class with a carrying amount and fair value measured in accordance with IAS 39 measurement requirements.
 
    
2022
  
     
SPPI compliant financial assets rated BB or below
  
            Carrying
amount
    
        Fair value  
  
     
Debt securities – Carried at fair value
     26       26    
     
Mortgage loans – Carried at amortized cost
     31,430       28,477    
     
Private loans – Carried at amortized cost
     352       337    
     
At December 31
  
 
31,808
 
  
 
28,840  
 
Summary of Aegon the Netherlands maximum exposure to credit risk from investments in general account financial assets, general account derivatives and reinsurance assetsand collateral held and net exposure
The table that follows shows Aegon the Netherlands’ maximum exposure to credit risk from investments in general account financial assets, as well as general account derivatives and reinsurance assets, collateral held and net exposure.
 
2022
   
Maximum
exposure
to credit
risk
     
Cash
     
Securities
     
Letters
of
credit /
guaran-
tees
     
Real
estate
property
     
Master
netting
agree-
ments
     
Other
     
Total
collateral
     
Surplus
collateral (or
overcollater-
alization)
     
Net
exposure
  
                     
Debt securities - carried at fair value
      15,519        -        -        -        -        -        -        -        -        15,519  
                     
Mortgage loans - carried at amortized cost
      31,430        2,590        -        22        60,991        -        -        63,603        32,263        90  
                     
Private loans - carried at amortized cost
      4,484        -        -        -        -        -        -        -        -        4,484  
                     
Other loans - carried at amortized cost
      3        -        -        -        -        -        -        -        -        3  
                     
Other financial assets - carried at fair value
      76        -        -        -        -        -        -        -        -        76  
                     
Derivatives
      8,394        -        -        -        -        8,394        -        8,394        -        (0 ) 
                     
Reinsurance assets
      79        -        -        -        -        -        -        -        -        79  
                     
At December 31
   
 
59,985
 
   
 
2,590
 
   
 
-
 
   
 
22
 
   
 
60,991
 
   
 
8,394
 
   
 
-
 
   
 
71,997
 
   
 
32,263
 
   
 
20,252
 
Summary of ratings distribution of general account portfolios of Aegon the Netherlands, excluding reinsurance assets The rating used is the lower of the external rating and the internal rating.
 
     
The Netherlands
  
     
Credit rating general account investments, excluding reinsurance assets 2022
   
Amortized cost
     
Fair value
  
     
AAA
      2,623        8,643  
     
AA
      253        9,425    
     
A
      233        3,411  
     
BBB
      1,025        2,327  
     
BB
      3        119  
     
B
      -        33  
     
CCC or lower
      -        1  
     
Assets not rated
      31,552        1,450  
     
Total
   
 
35,688
 
   
 
25,409
 
     
Past due and / or impaired assets
      229        17  
     
At December 31, 2022
   
 
35,917
 
   
 
25,426
 
Summary of credit quality of the gross positions in the statement of financial position for general account reinsurance assets The following table shows the credit quality of the gross positions in the statement of financial position for general account reinsurance assets specifically:
 
    
Carrying value
  
   
AAA
     -  
   
AA
     22    
   
A
     55  
   
Below A
     -  
   
Not rated
     1  
   
At December 31, 2022
  
 
79
 
Summary of credit risk concentration
The tables that follow present specific credit risk concentration information for general account financial assets.
 
Credit risk concentrations – debt securities and money market investments 2022
   
    The Netherlands
     
    Of which past due and /
or impaired assets
  
     
Residential mortgage-backed securities (RMBSs)
      65        -  
     
Commercial mortgage-backed securities (CMBSs)
      2        -  
     
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans
      2,714        -  
     
Financial - Banking
      1,306        -  
     
Financial - Other
      569        -  
     
Capital goods and other industry
      276        -  
     
Communications & Technology
      715        -  
     
Consumer cyclical
      373        -    
     
Consumer
non-cyclical
      710        -  
     
Energy
      26        -  
     
Transportation
      424        -  
     
Utility
      232        -  
     
Government bonds
      8,106        -  
     
At December 31, 2022
   
 
15,519
 
   
 
-
 
 
Credit risk concentrations – Government bonds per country of risk 2022
   
        The Netherlands
  
   
Netherlands
      2,671    
   
United Kingdom
      3  
   
Austria
      347  
   
Belgium
      675  
   
Finland
      38  
   
France
      1,226  
   
Germany
      2,412  
   
Indonesia
      33  
   
Luxembourg
      448  
   
Rest of Europe
      70  
   
Rest of world
      184  
   
At December 31, 2022
   
 
8,106
 
 
Credit risk concentrations – Credit rating 2022
1)
  
    Government
bonds
     
    Corporate bonds
     
    RMBSs CMBSs
ABSs
             
    Other
     
    Total
  
             
AAA
      5,900        157        2,520                 -        8,577    
             
AA
      1,907        634        228                 -        2,769  
             
A
      80        1,688        12                 -        1,780  
             
BBB
      194        2,087        22                 -        2,302  
             
BB
      26        64        -                 -        90  
             
B
      -        -        -                 -        -  
             
CCC or lower
      -        1        -     
 
 
 
      -        1  
             
At December 31, 2022
   
 
8,106
 
   
 
4,631
 
   
 
2,782
 
   
 
 
 
   
 
-
 
   
 
15,519
 
1
CNLP Ratings are used and are the lower of the Barclay’s Rating and the Internal Rating with the Barclay’s rating being a blended rating of S&P, Fitch, and Moody’s.
 
Credit risk concentrations – mortgage loans 2022
   
The Netherlands
     
Of which past due
and / or impaired
assets
  
     
Retail
      6        -  
     
Other commercial
      19        1  
     
Residential
      31,404        154    
     
At December 31, 2022
   
 
31,430
 
   
 
155
 
Summary of the carrying values recognized in the statement of financial position of Aegon the Netherlands interests in RMBSs, CMBSs and ABSs The Investments column reflects the carrying values recognized in the statement of financial position of Aegon the Netherlands interests in RMBSs, CMBSs and ABSs.
 
     
Total income for the year ended December 31, 2022
     
December 31,
2022
  
           
2022
   
Interest
income
     
Total gains and
losses on sale of
assets
            
Total
     
Investments
  
           
Residential mortgage-backed securities
      -        -                       1        65  
           
Commercial mortgage-backed securities
      -        -                -        2    
           
Asset-backed securities
      7        (1 )   
 
 
 
      7        2,714  
           
Total
   
 
8
 
   
 
(0
) 
  
 
 
 
   
 
8
 
   
 
2,782
 
Summary of amortized cost and fair value of debt securities, money market investments and other
The amortized cost and fair value of debt securities, money market investments and other, included in Aegon the Netherlands
available-for-sale
(AFS) portfolios, are as follows as of December 31, 2022:
 
2022
   
Amortized
cost
     
Unrealized
gains
     
Unrealized
losses
    
Total fair
value
     
Fair value of
instruments
with
unrealized
gains
     
Fair value of
instruments
with
unrealized
losses
  
             
Debt securities, money market instruments and other
                                                     
             
Dutch government
      2,728        15        (72 )      2,671        281        2,390  
             
Other government
      5,297        172        (244 )      5,226        1,867        3,359  
             
Mortgage-backed securities
      69        -        (2 )      68        9        59  
             
Asset-backed securities
      2,816        1        (102 )      2,714        5        2,710  
             
Corporate
      4,100        3        (673 )      3,430        60        3,370    
             
Other
      13        -        -       13        13        -  
             
Total
   
 
15,023
 
   
 
191
 
   
 
(1,092
) 
  
 
14,122
 
   
 
2,234
 
   
 
11,888
 
Summary of composition by industry category of Aegon the Netherlands available-for-sale (AFS) debt securities, money market investments and other in an unrealized loss position
The composition by industry category of Aegon the Netherlands
available-for-sale
(AFS) debt securities, money market investments and other in an unrealized loss position at December 31, 2022, is presented in the following table:
 
     
December 31, 2022
  
     
Unrealized losses - debt securities, money market investments and other
   
Carrying value of
    instruments with
unrealized losses
     
    Unrealized losses
  
     
Residential mortgage-backed securities (RMBSs)
      57        (2 ) 
     
Commercial mortgage-backed securities (CMBSs)
      2        -  
     
Asset-backed securities (ABSs) - CDOs backed by ABS, Corp. bonds, Bank loans
      2,710        (102 ) 
     
Financial Industry - Banking
      757        (126 ) 
     
Financial Industry - Insurance
      83        (14 ) 
     
Financial Industry - Other
      227        (80 ) 
     
Industrial
      2,183        (425 ) 
     
Utility
      122        (27 ) 
     
Government
      5,749        (316 ) 
     
Total
   
 
11,888
 
   
 
(1,092
) 
Summary of information on past due and individually impaired financial assets for Aegon the Netherland
The tables that follow provide information on past due and individually impaired financial assets for Aegon the Netherlands.
 
             
2022
                  
         
Past due but not impaired assets
   
0-6 months
     
6-12 months
     
> 1 year
     
Total
  
         
Mortgage loans
      145        3        1        149    
         
Other loans
      7        4        61        73  
         
At December 31
   
 
152
 
   
 
7
 
   
 
62
 
   
 
222
 
 
Impaired financial assets
   
                                                   Carrying amount 2022
  
   
Shares
      17    
   
Mortgage loans
      6  
   
Other loans
      2  
   
At December 31
   
 
24
 
Summary of equity market risk and other investments risk
 
Equity, real estate and
non-fixed
income exposure
   
                                                                     
The Netherlands
  
   
Equity funds
      34  
   
Investments in real estate
      2,545  
   
Other alternative investments
      349    
   
Other financial assets
      1,105  
   
At December 31, 2022
   
 
4,032
 
Summary of market risk concentrations
 
Market risk concentrations – shares
   
    The Netherlands
     
    Of which impaired
assets
  
     
Financials
      4        -  
     
Funds
      1,406        17    
     
At December 31, 2022
   
 
1,411
 
   
 
17
 
Summary of exposures of non-derivative financial assets and non-derivative liabilities that yet have to transition to alternative benchmark rates
The table below summarize the exposures of
non-derivative
financial assets and
non-derivative
liabilities of Aegon the Netherlands that yet have to transition to alternative benchmark rates.
 
     
2022
  
Non derivative financial instruments to transition to alternative benchmark
   
        Financial assets  
non-derivatives  
     
    Financial liabilities  
non-derivatives  
  
     
By benchmark rate
                  
     
Euribor
      3,517          -    
     
Total
   
 
3,517  
 
   
 
-  
 
Summary of exposures of derivatives
 
    
2022               
     
2021                 
  
Derivative financial instruments to transition to alternative benchmark
   
            Nominal Value  
     
            Nominal Value  
  
     
By benchmark rate
                  
     
GBP LIBOR
      -          -    
     
USD LIBOR
      963          -    
     
EUR LIBOR
      -          -    
     
Euribor
      119,638          112,599    
     
Fed Funds
      -          -    
     
EONIA
      -          -    
     
Total
   
 
120,601  
 
   
 
112,599
 
Summary of maturity analysis gross undiscounted contractual cash flows relating to discontinued operations
 
                                                                                                                                                                                           
             
Maturity analysis – gross undiscounted
contractual cash flows (for
non-derivatives)
   
    On demand
     
< 1 yr amount
     
1 < 5 yrs
amount
     
5 < 10 yrs
amount
     
> 10 yrs
amount
     
Total amount
  
             
2022
                                                      
             
Borrowings
   
 
-
 
   
 
1,574
 
   
 
3,321
 
   
 
14
 
   
 
503
 
   
 
5,412
 
             
Other financial liabilities
   
 
455
 
   
 
800
 
   
 
129
 
   
 
112
 
   
 
170
 
   
 
1,665
 
             
Total financial liabilities (excluding
investment/insurance contracts)
   
 
455
 
   
 
2,375
 
   
 
3,450
 
   
 
126
 
   
 
673
 
   
 
7,078
 
             
Investment contracts
1)
  
 
9,167
 
   
 
617
 
   
 
1,448
 
   
 
731
 
   
 
552
 
   
 
12,517
 
             
Investment contracts for account of policyholders
1)
  
 
1,396
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
1,396
   
             
Total investment contracts
   
 
10,564
 
   
 
617
 
   
 
1,448
 
   
 
731
 
   
 
552
 
   
 
13,913
 
 
1
 
Excluding investment contracts with discretionary participating features.
Summary of financial liabilities relating to insurance and investment contracts
 
                                                                                                                                                                                           
             
Financial liabilities relating to insurance and
investment contracts
1)
  
    On demand
     
< 1 yr amount
     
1 < 5 yrs
amount
     
5 < 10 yrs
amount
     
> 10 yrs
amount
     
Total amount
  
             
2022
                                                      
             
Insurance contracts
   
 
-
 
   
 
1,819
 
   
 
6,330
 
   
 
7,411
 
   
 
30,422
 
   
 
45,982
 
             
Insurance contracts for account of policyholders
   
 
-
 
   
 
1,227
 
   
 
4,598
 
   
 
5,791
 
   
 
16,253
 
   
 
27,870
 
             
Investment contracts
   
 
-
 
   
 
7,476
 
   
 
3,410
 
   
 
1,172
 
   
 
552
 
   
 
12,610
 
             
Investment contracts for account of policyholders
   
 
-
 
   
 
1,396
 
   
 
-
 
   
 
-
 
   
 
-
 
   
 
1,396
   
             
Total
   
 
-
 
   
 
11,919
 
   
 
14,339
 
   
 
14,373
 
   
 
47,227
 
   
 
87,858
 
 
1
 
The liability amount in the table reflects the discounting for interest as well as adjustments for the timing of other factors as described above. As a result, the sum of the cash benefit payments shown for all years in the table exceeds the corresponding liability amounts included in Insurance contracts and Investments contracts.
Summary of maturity analysis relating to derivatives
The following table details Aegon the Netherlands liquidity analysis for its derivative financial instruments, based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement.
 
Maturity analysis relating to derivatives
1)
(Contractual cash flows)
    On demand      < 1 yr amount     1 < 5 yrs
amount		     5 < 10 yrs
amount		     > 10 yrs
amount		     Total amount    
             
2022
                                                  
             
Gross settled
                                                  
             
Cash inflows
      -        2,449       9,757       10,618       20,748       43,572  
             
Cash outflows
      -        (2,422 )      (10,107 )      (11,167 )      (20,613 )      (44,309 ) 
             
Net settled
                                                  
             
Cash inflows
      -        -       -       -       -       -  
             
Cash outflows
      -        -       -       -       -       -  
 
1
 
Derivatives includes all financial derivatives regardless whether they have a positive or a negative value. It does not include bifurcated embedded derivatives. These are presented together with the host contract. For interest rate derivatives only, cash flows related to the pay leg are taken into account for determining the gross undiscounted cash flows.
Summary of liabilities for guarantees that are included in valuation of host contracts net of present value of expected future premiums relating to discontinued operations
These guarantees are valued at fair value and are included as part of insurance liabilities with the underlying host insurance contracts in note 34 Insurance contracts.
The following table provides information on the liabilities for guarantees that are included in the valuation of the host contracts, net of the present value of the expected future premiums that are received to cover these guarantees:
 
     
      2022            
     2021            
     
    
GMI 
1), 2)
     GMI 
1), 2)
     
At January 1
      6,429       7,973  
     
Incurred guarantee benefits
3)
     (3,471 )      (1,544 ) 
     
At December 31
   
 
2,958
 
  
 
6,429
 
     
Account value
4)
     16,559       20,176  
     
Net amount at risk
5)
     3,133       6,794  
 
1
 
Guaranteed minimum investment return in the Netherlands.
2
 
Balances are included in the insurance liabilities on the face of the statement of financial position; refer to note 34 Insurance contracts.
3
 
Incurred guarantee benefits mainly comprise the effect of guarantees from new contracts, releases related to expired
out-of-the-money
guarantees and fair value movements during the reporting year.
4
 
Account value reflects the liability value of the insurance contracts as a whole.
5
 
The net amount at risk represents the sum of the differences between the guaranteed and actual amount that is credited to the policyholders. For Individual policies only positive differences are included, for Group pensions contracts carry forwards of negative differences are recognized.
Summary of provides an 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 of Aegon the Netherlands recorded at fair value on a recurring basis by level of the fair value hierarchy:
 
     
          Level I
     
          Level II
     
          Level III
     
          Total 2022
  
         
Assets carried at fair value
                                    
         
Available-for-sale
investments
                                    
         
Shares
      -        -        21        21  
         
Debt securities
      7,897        6,159        54        14,109    
         
Other investments at fair value
      -        13        -        13  
         
    
 
7,897
 
   
 
6,171
 
   
 
75
 
   
 
14,143
 
         
Fair value through profit or loss
                                    
         
Shares
      32        -        1,357        1,390  
         
Debt securities
      87        1,279        44        1,410  
         
Other investments at fair value
      -        -        64        64  
         
Investments for account of policyholders
1)
     10,782        7,383        932        19,097  
         
Derivatives
      127        8,268        -        8,394  
         
Investments in real estate
      -        -        2,545        2,545  
         
    
 
11,029
 
   
 
16,930
 
   
 
4,942
 
   
 
32,900
 
         
Revalued amounts
                                    
         
Real estate held for own use
      -        -        76        76  
         
 
   
 
-
 
   
 
-
 
   
 
76
 
   
 
76
 
         
Total assets at fair value
   
 
18,925
 
   
 
23,101
 
   
 
5,092
 
   
 
47,118
 
         
Liabilities carried at fair value
                                    
         
Investment contracts for account of policyholders
2)
     -        1,291        105        1,396  
         
Derivatives
      3        8,482        754        9,239  
         
Total liabilities at fair value
3)
  
 
3
 
   
 
9,773
 
   
 
859
 
   
 
10,635
 
 
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 of Aegon the Netherlands for financial assets and financial liabilities recorded at fair value on a recurring basis.
 
      Total 2022  
     
     
Transfers Level I
to Level II
     
  Transfers Level II
to Level I
  
     
Assets carried at fair value
                  
     
Available-for-sale
   
 
 
 
   
 
 
 
     
Investments for account of policyholders
      -        12    
     
                   
     
Total assets at fair value
   
 
-
 
   
 
12
 
Summary of information about significant unobservable inputs
The table below pres
e
nts information about the significant unobservable inputs used for recurring fair value measurements for certain Level III financial instruments of Aegon the Netherlands.
 
      Valuation
technique 
1)
     Significant
unobservable input 
2) 
     
December 31, 2022  
  
       
Assets carried at fair value
                           
       
Available-for-sale
                           
       
Shares
                           
       
       Net asset value        n.a.        -  
       
 
      Other        n.a.        21  
                      
 
21
 
       
Debt securities
                           
       
 
      Broker quote        n.a.        54    
 
   
 
 
 
   
 
 
 
   
 
54
 
At December 31
   
 
 
 
   
 
 
 
   
 
75
 
       
Fair value through profit or loss
                           
Shares
      Other        n.a.        1,357  
       
Debt securities
      Other        n.a.        44  
                      
 
1,401
 
       
Other investments at fair value
                           
       
Investment funds
      Net asset value        n.a.        -  
       
Other
      Other        n.a.        64  
                      
 
64
 
       
                            
Total assets at fair value
3)
  
 
 
 
   
 
 
 
   
 
1,540
 
       
Liabilities carried at fair value
                           
Derivatives
                           
Embedded derivatives in insurance contracts
      Discounted cash flow        Own credit spread        754  
Total liabilities at fair value
   
 
 
 
   
 
 
 
   
 
754
 
 
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. Refer to the section Fair value measurement in this note for a detailed description of Aegon’s methods of determining fair value and the valuation techniques.
3
 
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 result or equity. The effect on total assets is offset by the effect on total liabilities.
Summary of impact on a fair value measurement
The table below presents the impact on a fair value measurement of Aegon the Netherlands of a change in the own credit spread by 5 basis points included in the discount rate.
 
    
December 31, 2022
     
Effect of reasonably possible
alternative assumptions (+/-)
  
       
             
Increase
     
Decrease
  
       
Financial liabilities carried at fair value
                           
       
Embedded derivatives in insurance contracts
      754        4        (4 )   
Summary of 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
The following table presents the carrying values and estimated fair values for Aegon the Netherlands of assets and liabilities, excluding assets and liabilities which are carried at fair value on a recurring basis.
 
     
Carrying amount
December 31,
2022
     
Estimated fair
value hierarchy
             
Total estimated  
fair value  
December 31,  
2022  
  
           
             
Level I
     
Level II
     
Level III
          
           
Assets
                                             
           
Mortgage loans - held at amortized cost
      31,430        -        -        28,477        28,477    
           
Private loans - held at amortized cost
      4,484        -        -        3,966        3,966  
           
Other loans - held at amortized cost
      3        -        -        3        3  
           
Liabilities
                                             
           
Borrowings - held at amortized cost
      5,227        -        -        4,920        4,920  
           
Investment contracts - held at amortized cost
      12,179        -        -        11,826        11,826  
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 of Aegon the Netherlands 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.
 
    
2022        
  
       
     
        Trading
             
        Designated  
  
       
Investments for general account
      -                 2,864  
       
Investments for account of policyholders
      -                 19,097    
       
Derivatives with positive values not designated as hedges
      6,522     
 
 
 
      -  
       
Total financial assets at fair value through profit or loss
   
 
6,522
 
   
 
 
 
   
 
21,960
 
       
Investment contracts for account of policyholders
      -                 1,396  
       
Derivatives with negative values not designated as hedges
      8,378     
 
 
 
      -  
       
Total financial liabilities at fair value through profit or loss
   
 
8,378
 
   
 
 
 
   
 
1,396
 
Summary of gains and losses on financial assets and financial liabilities classified at fair value through profit or loss
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:
 
    
2022        
  
       
     
        Trading
            
        Designated 
  
       
Net gains and (losses)
      (6,495 )   
 
 
 
      (4,031 )  
Summary of commitments and contingencies
 
    
2022
  
       
     
        Purchase
            
            Sale
  
       
Real estate
      341                4  
       
Mortgage loans
      1,094                 37    
       
Private loans
      752                -  
       
Other
      209    
 
 
 
      -  
Summary of minimum lease payments under non-cancellable operating leases relating to discontinued operations
 
     
< 1 year
amounts
    
1 < 2 years
amounts
    
2 < 3 years
amounts
    
3 < 4 years
amounts
    
4 < 5 years
amounts
    
> 5 years
amounts
  
             
2022
                                                 
             
Operating lease rights
      (2 )      (2 )      (1 )      (1 )      (1 )      (2 ) 
Summary of commitments and contingent liabilities relating to discontinued operations
 
     
            
     
            
     
        
     
        
     
        
     
        
     
        
     
        
     
        
     
2022
  
                     
Guarantees
                                                                                       12    
                     
Standby letters of credit
                                                                                       11  
                     
Share of contingent liabilities incurred in relation to interests in joint ventures
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
      5  
Summary of financial assets that have been transferred to another party in such a way that part or all of the transferred financial assets do not qualify for dericognition
The following table reflects the carrying amount of financial assets of Aegon the Netherlands that have been transferred to another party in such a way that part or all of the transferred financial assets do not qualify for derecognition. Furthermore, it reflects the carrying amounts of the associated liabilities.
 
     
                     
      
                     
      
                     
      
                     
  
   
     
2022
  
     
     
        Available-for-sale financial assets
     
        Financial assets at fair value through
profit or loss
  
         
     
Shares
     
Debt securities
     
Debt securities
     
Investments for
account of
policyholders
  
         
Carrying amount of transferred assets
   
 
40
 
   
 
656
 
   
 
-
 
   
 
-
 
         
Carrying amount of associated liabilities
   
 
43
 
   
 
676
 
   
 
-
 
   
 
-
   
Summary of fair value measurement of assets relating to discontinued operations
 
Securities lending
   
                                                        2022
  
   
Carrying amount of transferred financial assets
      696  
   
Fair value of cash collateral received
      -  
   
Fair value of
non-cash
collateral received
      719  
   
Net exposure
   
 
(23
) 
   
Non-cash
collateral that can be sold or repledged in the absence of default
      719    
   
Non-cash
collateral that has been sold or transferred
      -  
Summary of repurchase and reverse repurchase agreements relating to discontinued operations
Reverse repurchase agreements
   
                                                    2022
  
   
Cash paid for reverse repurchase agreements
      220  
   
Fair value of
non-cash
collateral received
      220  
   
Net exposure
   
 
-
 
   
Non-cash
collateral that can be sold or repledged in the absence of default
      220    
   
Non-cash
collateral that has been sold or transferred
      -  
Summary of offsetting of financial assets and financial liabilities relating to discontinued operations The following table only includes financial positions of Aegon the Netherlands for which there is a recognized corresponding position that could be offset under a legally enforceable master netting arrangement or similar agreement. Aegon the netherlands also enters into collateralized (reverse) repo or security lending and borrowing transaction, for which the collateral is not recognized on the balance sheet. The table provides details relating to the effect, or potential effect, of netting arrangements, including rights to
set-off,
associated with the entity’s recognized financial assets and recognized financial liabilities.
 
                                                                                                                                                                                                             
           
    
Gross amounts
of recognized
financial
assets
     
Gross amounts
of recognized
financial
liabilities set
off in the
statement of
financial
position
     
Net amounts of
financial
assets
presented in
the statement
of financial
position
     
Related amounts not set off in
the statements of financial
position
         
Financial assets subject to
offsetting, enforceable master
netting arrangements and similar
agreements
   
Financial
instruments
     
Cash collateral
received
(excluding
surplus
collateral)
     
Net amount
  
             
2022
                                                      
             
Derivatives
   
 
8,394
 
   
 
-
 
   
 
8,394
 
   
 
8,394
 
   
 
-
 
   
 
-
   
             
At December 31
   
 
8,394
 
   
 
-
 
   
 
8,394
 
   
 
8,394
 
   
 
-
 
   
 
-
 
 
                                                                                                                                                                                                                         
           
    
Gross amounts
of recognized
financial
liabilities
     
Gross amounts
of recognized
financial
assets set off
in the
statement of
financial
position
     
Net amounts of
financial
liabilities
presented in
the statement
of financial
position
     
Related amounts not set off in
the statements of financial
position
         
Financial liabilities subject to
offsetting, enforceable master
netting arrangements and similar
agreements
   
Financial
instruments
     
Cash collateral
pledged
(excluding
surplus
collateral)
     
Net amount
  
             
2022
                                                      
             
Derivatives
   
 
8,485
 
   
 
—  
 
   
 
8,485
 
   
 
8,419
 
   
 
66
 
   
 
-
   
             
At December 31
   
 
8,485
 
   
 
—  
 
   
 
8,485
 
   
 
8,419
 
   
 
66
 
   
 
-
 
Aegon Nederland N.V. [member] | Discontinued operations [member]  
Statement [LineItems]  
Summary of actuarial assumptions used to determine defined benefit obligations
The principal actuarial assumptions that apply for the year-ended December 31 are as follows:
 
Actuarial assumptions used to determine defined benefit obligations at
year-end
   
            2022  
      2021  
     
Demographic actuarial assumptions
                  
     
Mortality
     
 NL mortality
table
1)
 
 		     
     NL mortality
table
1)
 
 
     
Financial actuarial assumptions
                  
     
Discount rate
      3.61%        1.01%  
     
Salary increase rate
2)
     Curve 2022        Curve 2021    
     
       Percentage is no        53.05% of  
Indexation
2)
     longer derived        Curve 2021  
 
1
 
Based on prospective mortality table of the Dutch Actuarial Society with minor methodology adjustments.
2
 
Based on Dutch Consumer Price Index.
The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions of the retirement benefit plan would have the following effects per
year-end:
 
    
 Estimated approximate effects on  
the defined benefit obligation  
  
     
    
2022
     2021     
     
Demographic actuarial assumptions
                
     
10% increase in mortality rates
     (38 )      (100 ) 
     
10% decrease in mortality rates
     41       112  
     
Financial actuarial assumptions
                
     
100 basis points increase in discount rate
     (221 )      (622 ) 
     
100 basis points decrease in discount rate
     281       849  
     
100 basis points increase in salary increase rate
     -       -  
     
25 basis points increase in indexation
     n/a       187      
     
25 basis points decrease in indexation
     n/a       (170 ) 
Operational funding [member]  
Statement [LineItems]  
Summary of Borrowings
 
                                         
      Coupon rate          Coupon date          Issue /Maturity       
              2022  
                  2021    
Revolving Loan Facility Warehouse Mortgage Loans
1)
     Floating        Monthly        - /22          -          592    
Revolving Loan Facility Warehouse Mortgage Loans
1)
     Floating        Monthly        - /24          -          494    
EUR 875 million “SAECURE 16” RMBS Note
1)
,
2)
     Floating        Quarterly        2018 / 23          -          676    
EUR 512 million “SAECURE 18” RMBS Note
1)
,
3)
     Floating        Quarterly        2019 / 25          -          355    
EUR 657 million “SAECURE 20” RMBS Note
1)
,
4)
     Floating        Quarterly        2021 / 27          -          625    
EUR 500 million Conditional Pass-Through Covered Bond
1)
,
5)
     0.250%        Annual        2016 / 23          -          499    
EUR 500 million Conditional Pass-Through Covered Bond
1)
,
6)
     0.375%        Annual        2017 / 24          -          499    
EUR 500 million Conditional Pass-Through Covered Bond
1)
,
7)
     0.010%        Annual        2020 / 25          -          506    
EUR 500 million Conditional Pass-Through Covered Bond
1)
,
8)
     0.750%        Annual        2017 / 27          -          492    
EUR 500 million Conditional Pass-Through Covered Bond
1)
,
9)
     0.375%        Annual        2021 / 36          -          494    
FHLB Secured borrowings
1)
     Floating        Quarterly        2021 / 24          2,806          2,634    
Aegon Bank Senior
Non-Preferred
debt
1)
     0.625%        Annual        2019 / 24          -          499    
Other
                                 -          5    
At December 31
   
 
 
 
   
 
 
 
   
 
 
 
   
 
2,806  
 
   
 
8,369  
 
 
1
 
Issued by a subsidiary of Aegon N.V.
2
 
The first optional redemption date is October 30, 2023; the final legal maturity date is October 30, 2091. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments.
3
 
The first optional redemption date is July 28, 2025; the final legal maturity date is April 28, 2092. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments.
4
 
The first optional redemption date is October 28, 2027; the final legal maturity date is April 28, 2093. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments.
5
 
The maturity date is May 25, 2023; the extended due for payment date is May 25, 2055.
6
 
The maturity date is November 21, 2024; the extended due for payment date is November 21, 2056.
7
 
The maturity date is November 16, 2025; the extended due for payment date is November 16, 2057.
8
 
The maturity date is June 27, 2027; the extended due for payment date is June 27, 2059.
9
 
The maturity date is June 9, 2036; the extended due for payment date is June 9, 2037.
 
Operational funding [member] | Discontinued operations [member]  
Statement [LineItems]  
Summary of Borrowings
 
 
      Coupon rate        Coupon date        Issue / Maturity     
 
                    2022
 
         
Revolving Loan Facility Warehouse Mortgage Loans
      Floating        Monthly        - / 23        260  
         
Revolving Loan Facility Warehouse Mortgage Loans
      Floating        Monthly        - / 24        250  
         
Revolving Loan Facility Warehouse Mortgage Loans
      Floating        Monthly        - / 25        271  
         
EUR 875 million “SAECURE 16” RMBS Note
1)
     Floating        Quarterly        2018 / 23        609  
         
EUR 550 million “SAECURE 18” NHG RMBS Note
2)
     Floating        Quarterly        2019 / 25        300    
         
EUR 750 million “SAECURE 20” RMBS Note
3)
     Floating        Quarterly        2021 / 27        542  
         
EUR 500 million Conditional Pass-Through Covered Bond
4)
     0.250%        Annual        2016 / 23        500  
         
EUR 500 million Conditional Pass-Through Covered Bond
5)
     0.375%        Annual        2017 / 24        499  
         
EUR 500 million Conditional Pass-Through Covered Bond
6)
     0.010%        Annual        2020 / 25        505  
         
EUR 500 million Conditional Pass-Through Covered Bond
7)
     0.750%        Annual        2017 / 27        493  
         
EUR 500 million Conditional Pass-Through Covered Bond
8)
     0.375%        Annual        2021 / 36        494  
         
Aegon Bank Senior
Non-Preferred
debt
      0.625%        Annual        2019 / 24        499  
         
Other
   
 
 
 
   
 
 
 
   
 
 
 
      5  
         
At December 31
   
 
 
 
   
 
 
 
   
 
 
 
   
 
5,227
 
 
1
 
The first optional redemption date is October 30, 2023; the final legal maturity date is October 30, 2091. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments.
2
 
The first optional redemption date is July 28, 2025; the final legal maturity date is April 28, 2092. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments.
3
 
The first optional redemption date is October 28, 2027; the final legal maturity date is April 28, 2093. Notes are fully collateralized by mortgage loans which are part of Aegon’s general account investments.
4
 
The maturity date is May 25, 2023; the extended due for payment date is May 25, 2055.
5
 
The maturity date is November 21, 2024; the extended due for payment date is November 21, 2056.
6
 
The maturity date is November 16, 2025; the extended due for payment date is November 16, 2057.
7
 
The maturity date is June 27, 2027; the extended due for payment date is June 27, 2059.
8
 
The maturity date is June 9, 2036; the extended due for payment date is June 9, 2037.