◆

Securities lending; whereby Aegon legally (but not economically) transfers assets and receives cash and

non-cash

collateral. The transferred assets are not derecognized. The obligation to repay the cash collateral is recognized as a liability. The

non-cash

collateral is not recognized in the statement of financial position; and

◆

Repurchase activities; whereby Aegon receives cash for the transferred assets. The financial assets are legally (but not economically) transferred, but are not derecognized. The obligation to repay the cash received is recognized as a liability.

◆	Transferred financial assets that are derecognized in their entirety and Aegon does not have a continuing involvement (normal sale);

◆	Transferred financial assets that are derecognized in their entirety, but where Aegon has a continuing involvement;

◆	Collateral accepted in the case of securities lending, reverse repurchase agreement and derivative transactions; and

◆	Collateral pledged in the case of (contingent) liabilities, repurchase agreements, securities borrowing and derivative transactions.

The following disclosures provide details for transferred financial assets that are not derecognized in their entirety, transferred financial asset that are derecognized in their entirety, but where Aegon has a continuing involvement and assets accepted and pledged as collateral.

46.1 Transferred financial assets that have not been derecognized in their entirety

The following table reflects the carrying amount 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 derecognition. Furthermore, it reflects the carrying amounts of the associated liabilities.



	2022 1)

	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		-		2,200		16		72

Carrying amount of associated liabilities		-		2,513		17		-

1	2022 excludes the assets and liabilities of the disposal group, which are separately disclosed in note 51 Discontinued operations.



	2021

	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		34		3,705		12		96

Carrying amount of associated liabilities		37		3,941		18		-

Securities lending and repurchase activities

The table above includes financial assets that have been transferred to another party under securities lending and repurchase activities.

Aegon retains substantially all risks and rewards of those transferred assets, this includes credit risk, settlement risk, country risk and market risk. The assets are transferred in return for cash collateral or other financial assets.

Non-cash

collateral is not recognized in the statement of financial position. Cash collateral is recorded on the statement of financial position as an asset and an offsetting liability is established for the same amount as Aegon is obligated to return this amount upon termination of the lending arrangement. Cash collateral is usually invested in

pre-designated

high quality investments. The sum of cash and

non-cash

collateral is typically greater than the market value of the related securities loaned. Refer to note 46.3 Assets accepted and note 46.4 Assets pledged for an analysis of collateral accepted and pledged in relation to securities lending and repurchase agreements.

46.2 Transferred financial assets that are derecognized in their entirety, but where Aegon has continuing involvement

Aegon has no transferred financial assets with continuing involvement that are derecognized in their entirety as per

year-end

2022 and as per

year-end

2021.

46.3 Assets accepted

Aegon receives collateral related to securities lending, reverse repurchase activities and derivative transactions.

Non-cash

collateral is not recognized in the statement of financial position. To the extent that cash is paid for reverse repurchase agreements, a receivable is recognized for the corresponding amount.

The following tables present the fair value of the assets received in relation to securities lending and reverse repurchase activities:



Securities lending	2022 1)			2021

Carrying amount of transferred financial assets		2,190			3,083

Fair value of cash collateral received		2,417			2,171

Fair value of non-cash collateral received		74			1,102

Net exposure		(301	)		(190)

Non-cash collateral that can be sold or repledged in the absence of default		-			1,004

Non-cash collateral that has been sold or transferred		-			-

1	2022 excludes the disposal group, which is separately disclosed in note 51 Discontinued operations.



Reverse repurchase agreements	2022 1)			2021

Cash paid for reverse repurchase agreements		312			1,004

Fair value of non-cash collateral received		335			1,025

Net exposure		(23	)		(21)

Non-cash collateral that can be sold or repledged in the absence of default		-			695

Non-cash collateral that has been sold or transferred		-			-

1	2022 excludes the disposal group, which is separately disclosed in note 51 Discontinued operations.

The above items are conducted under terms that are usual and customary to standard securities lending activities, as well as requirements determined by exchanges where the bank acts as intermediary.

In addition, Aegon can receive collateral related to derivative transactions that it enters into. The credit support agreement will normally dictate the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of

over-the-counter

derivative trades, comprised mostly of interest rate swaps, currency swaps and credit swaps. Refer to the credit risk section in note 4 Financial risks for details on collateral received for derivative transactions.

46.4 Assets pledged

Aegon pledges assets that are on its statement of financial position in securities borrowing transactions, in repurchase transactions, in derivative transactions and against long-term borrowings. In addition, in order to trade derivatives on the various exchanges, Aegon posts margin as collateral.

These transactions are conducted under terms that are usual and customary to standard long-term borrowing, derivative and securities borrowing activities, as well as requirements determined by exchanges where the bank acts as intermediary.

Non-cash

financial assets that are borrowed or purchased under agreement to resell are not recognized in the statement of financial position.

To the extent that cash collateral is paid, a receivable is recognized for the corresponding amount. If other

non-cash

financial assets are given as collateral, these are not derecognized.

The following tables present the carrying amount of collateral pledged and the corresponding amounts.



Assets pledged for general account and contingent liabilities	2022 1)			2021

General account (contingent) liabilities		3,520			3,410

Collateral pledged		5,745			4,594

Net exposure		(2,225	)		(1,183)

Non-cash collateral that can be sold or repledged by the counterparty		-			-

1	2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations.



Assets pledged for repurchase agreements	2022 1)		2021

Cash received on repurchase agreements		107		821

Collateral pledged (transferred financial assets)		99		764

Net exposure		8		57

1	2022 excludes the assets of the disposal group, which are separately disclosed in note 51 Discontinued operations.

In order to trade derivatives on the various exchanges, Aegon posts margin as collateral. The amount of collateral pledged for derivative transactions was EUR 4.7 billion (2021: EUR 2.3 billion).