Equibles

6-K

AEGON LTD. (AEG)

6-K 2021-11-12 For: 2021-11-12
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Added on April 07, 2026
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Securities and Exchange Commission

Washington, D.C. 20549

Form 6-K

Report ofForeign Issuer

Pursuant to Rule 13a-16 or 15d/16 of

the Securities Exchange Act of 1934

November 2021

AEGON N.V.

Aegonplein 50

2591 TVTHE HAGUE

The Netherlands

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Aegon’s condensed consolidated interim financial statements for the periods ended September 30, 2021, dated November 11, 2021, are included as appendix and incorporated herein by reference.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AEGON N.V.
(Registrant)
Date: November 12, 2021 By /s/ J.H.P.M. van Rossum
J.H.P.M. van Rossum
Executive Vice President and Head of Corporate Financial Center
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LOGO

AEGON Condensed consolidated interim financial statements for the period ended September 30, 2021 The Hague, November 11, 2011 Helping people achieve a lifetime of financial security

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

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Condensed consolidated income statement 2
Condensed consolidated statement of comprehensive<br>income 3
Condensed consolidated statement of financial<br>position 4
Condensed consolidated statement of changes in<br>equity 5
Condensed consolidated cash flow<br>statement 6
Notes to the condensed consolidated interim financial statements 7
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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Condensed consolidated income statement ****
millions 3Q<br> <br>2021 3Q<br> <br>2020 YTD<br> <br>2021 YTD<br> <br>2020
Premium income 3,662 3,610 11,529 12,354
Investment income 1,440 1,498 5,174 5,532
Fee and commission income 708 601 2,036 1,771
Other<br>revenues 6 1 10 3
Total revenues 5,816 **** 5,710 **** 18,749 **** 19,661 ****
Income from reinsurance ceded 916 921 2,602 2,873
Results from financial transactions 1,012 7,614 14,193 2,929
Other<br>income 2 (2 ) 43 53
Total income 7,747 **** 14,243 **** 35,587 **** 25,516 ****
Benefits and expenses 7,876 14,713 34,145 25,412
Impairment charges / (reversals) 12 37 15 283
Interest charges and related fees 87 146 254 379
Other<br>charges (4 ) (2 ) 54 100
Total charges 7,971 **** 14,893 **** 34,468 **** 26,174 ****
Share in profit / (loss) of joint ventures 64 77 201 192
Share in profit /<br>(loss) of associates 35 5 48 8
Result before tax (124 ) (568 ) 1,367 **** (457 )
Income tax<br>(expense) / benefit 65 150 (192 ) 242
Net result (60 ) (418 ) 1,175 **** (216 )
Net result attributable to:
Owners of Aegon N.V. (79 ) (419 ) 1,147 (217 )
Non-controlling interests 19 - 28 1
Earnings per share ( per share) 1
Basic earnings per common share (0.04 ) (0.20 ) 0.54 (0.12 )
Basic earnings per common share B - (0.01 ) 0.01 -
Diluted earnings per common share (0.04 ) (0.20 ) 0.54 (0.12 )
Diluted earnings per<br>common share B - (0.01 ) 0.01 -

All values are in Euros.

^1^ Please refer to the note on Share Capital for further details

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Condensed consolidated statement of comprehensive income
EUR millions Notes 3Q<br>2021 3Q<br>2020 YTD<br>2021 YTD<br>2020
Net result (60) (418) 1,175 (216)
Other comprehensive income:
Items that will not be reclassified to profit orloss:
Changes in revaluation reserve real estate held for<br>own use 1 - 1 -
Remeasurements of defined benefit plans 140 (259) 623 (307)
Income tax relating to items that will not be<br>reclassified (30) 56 (145) 64
Items that may be reclassified subsequently toprofit or loss:
Gains / (losses) on revaluation of available-for-sale investments (66) 755 (1,416) 2,223
Gains / (losses) transferred to the income statement<br>on<br> <br>disposal and impairment of<br>available-for-sale investments (115) (43) (333) 67
Changes in cash flow hedging reserve (74) (274) (143) 27
Movement in foreign currency translation and<br><br><br>net foreign investment hedging reserve 344 (676) 891 (843)
Equity movements of joint ventures 19 (12) 18 (4)
Equity movements of associates 2 (3) (4) 4
Disposal of group assets 11 2 8 (9)
Income tax relating to items that may be<br>reclassified 46 (98) 403 (504)
Other (10) (1) 8 -
Total other comprehensive income / (loss) for the<br>period 266 (553) (90) 718
Totalcomprehensive income / (loss) **** 207 **** (972) **** 1,085 503
Total comprehensive income / (loss) attributableto:
Owners of Aegon N.V. 180 (972) 1,050 501
Non-controlling interests 26 - 36 1
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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Condensed consolidated statement of financial position
EUR millions Notes September 30, 2021 December 31, 2020
Assets
Cash and cash equivalents 6,356 8,372
Investments 10 158,519 157,595
Investments for account of policyholders 11 240,632 224,172
Derivatives 11,456 13,986
Investments in joint ventures 12 1,689 1,376
Investments in associates 12 1,232 1,264
Reinsurance assets 19,859 18,910
Deferred expenses 9,645 8,799
Other assets and receivables 8,981 9,009
Intangible<br>assets 1,314 1,386
Total assets **** 459,684 444,868
Equity and liabilities
Shareholders’ equity 23,603 22,815
Other equity<br>instruments 15 2,352 2,569
Issued capital and reserves attributable to ownersof Aegon N.V. **** 25,955 25,384
Non-controlling interests 177 75
Group equity **** 26,132 25,459
Subordinated borrowings 2,165 2,085
Trust pass-through securities 126 126
Insurance contracts 122,953 122,146
Insurance contracts for account of<br>policyholders 143,266 135,441
Investment contracts 21,743 21,075
Investment contracts for account of<br>policyholders 100,112 91,624
Derivatives 13,913 14,617
Borrowings 16 9,464 8,524
Other<br>liabilities 19,809 23,771
Totalliabilities<br> <br>**** **** 433,552 419,410
Total equity andliabilities **** 459,684 444,868
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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Condensed consolidated statement of changes in equity
EUR millions Share<br>capital ^1^ Retained<br>earnings Revaluation<br>reserves Remeasurement<br>of defined<br>benefit plans Other<br>  reserves Other equity<br>  instruments Issued capital<br>  and reserves ^2^ Non-<br>  controlling<br>interests Total
Nine months ended September 30,2021
At beginning of year 7,480 10,943 7,480 (2,534 ) (554 ) 2,569 25,384 75 25,459
Net result recognized in the income<br>statement - 1,147 - - - - 1,147 28 1,175
Other comprehensive income:
Items that will not be reclassified to profitor loss:
Changes in revaluation reserve real estate<br>held<br>for own use - - 1 - - - 1 - 1
Remeasurements of defined benefit plans - - - 623 - - 623 - 623
Income tax relating to items that will not be<br>reclassified - - - (145 ) - - (145 ) - (145 )
Items that may be reclassified subsequentlyto profit or loss:
Gains / (losses) on revaluation of<br>available-for-sale investments - - (1,416 ) - - - (1,416 ) - (1,416 )
Gains / (losses) transferred to income statement<br>on<br>disposal and impairment of available-for-sale investments - - (333 ) - - - (333 ) - (333 )
Changes in cash flow hedging reserve - - (143 ) - - - (143 ) - (143 )
Movement in foreign currency translation and<br>net<br>foreign investment hedging reserves - - 322 (48 ) 611 - 885 6 891
Equity movements of joint ventures - - - - 18 - 18 - 18
Equity movements of associates - - - - (4 ) - (4 ) - (4 )
Disposal of group assets - - - - 8 - 8 - 8
Income tax relating to items that may be<br>reclassified - - 402 - 1 - 403 - 403
Other - 7 - - - - 7 1 8
Total other comprehensive income **** - **** **** 7 **** **** (1,167 ) **** 429 **** **** 634 **** **** - **** **** (97 ) **** 7 **** **** (90 )
Total comprehensive income / (loss) for2021 **** - **** **** 1,154 **** **** (1,167 ) **** 429 **** **** 634 **** **** - **** **** 1,050 **** **** 36 **** **** 1,085 ****
Shares issued 1 - - - - - 1 - 1
Shares withdrawn - 1 - - - - 1 - 1
Issuance and purchase of (treasury) shares - 10 - - - - 10 - 10
Dividends paid (127 ) (120 ) - - - - (247 ) - (247 )
Redemption other equity instruments - (1 ) - - - (212 ) (213 ) - (213 )
Coupons on perpetual securities - (26 ) - - - - (26 ) - (26 )
Incentive plans - - - - - (4 ) (4 ) - (4 )
Change in<br>ownership non-controlling interests - - - - - - - 66 66
At end ofperiod **** 7,354 **** **** 11,962 **** **** 6,313 **** **** (2,105 ) **** 80 **** **** 2,352 **** **** 25,955 **** **** 177 **** **** 26,132 ****
Nine months ended September 30,2020
At beginning of year 7,536 10,981 5,873 (2,397 ) 456 2,571 25,020 20 25,040
Net result recognized in the income<br>statement - (217 ) - - - - (217 ) 1 (216 )
Other comprehensive income:
Items that will not be reclassified to profitor loss:
Remeasurements of defined benefit plans - - - (307 ) - - (307 ) - (307 )
Income tax relating to items that will not be<br>reclassified - - - 64 - - 64 - 64
Items that may be reclassified subsequentlyto profit or loss:
Gains / (losses) on revaluation of
available-for-sale investments - - 2,223 - - - 2,223 - 2,223
disposal and impairment of available-for-sale investments - - 67 - - - 67 - 67
Changes in cash flow hedging reserve - - 27 - - - 27 - 27
net foreign investment hedging reserves - - (300 ) 54 (597 ) - (843 ) - (844 )
Equity movements of joint ventures - - - - (4 ) - (4 ) - (4 )
Equity movements of associates - - - - 4 - 4 - 4
Disposal of group assets - - - - (8 ) - (9 ) - (9 )
Income tax<br>relating to items that may be reclassified - - (495 ) - (8 ) - (504 ) - (504 )
Total other comprehensive income **** - **** **** - **** **** 1,521 **** **** (190 ) **** (613 ) **** - **** **** 718 **** **** 0 **** **** 718 ****
Total comprehensive income / (loss) for2020 **** - **** **** (217 ) **** 1,521 **** **** (190 ) **** (613 ) **** - **** **** 501 **** **** 1 **** **** 503 ****
Shares withdrawn (3 ) 3 - - - - - - -
Issuance and purchase of (treasury) shares - 63 - - - - 63 - 63
Dividends paid (54 ) (64 ) - - - - (118 ) - (118 )
Coupons on perpetual securities - (24 ) - - - - (24 ) - (24 )
Incentive plans - 11 - - - (8 ) 2 - 2
Change in ownership<br>non-controlling interests - - - - - - - (1 ) (1 )
Other - 1 - - 1 - 1 - 1
At end of period **** 7,480 **** **** 10,754 **** **** 7,394 **** **** (2,587 ) **** (157 ) **** 2,563 **** **** 25,447 **** **** 21 **** **** 25,468 ****

^1^Please refer to the note on Share Capital for a breakdown.

^2^Issued capital and reserves attributable to owners of Aegon N.V.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Condensed consolidated cash flow statement
EUR millions YTD 2021 YTD 2020
Result before tax **** 1,367 **** **** (457 )
Results from financial transactions (15,423 ) (3,185 )
Amortization and depreciation 1,031 504
Impairment losses 6 273
Income from joint ventures (201 ) (191 )
Income from associates (48 ) (8 )
Release of cash flow hedging reserve (78 ) (82 )
Other 161 7
Adjustments ofnon-cash items **** (14,552 ) **** (2,682 )
Insurance and investment liabilities (1,417 ) 5,819
Insurance and investment liabilities for account of<br>policyholders 7,821 (3,583 )
Accrued expenses and other liabilities (910 ) 233
Accrued income and<br>prepayments (355 ) (534 )
Changes in accruals **** 5,140 **** **** 1,935 ****
Purchase of investments (other than money market<br>investments) (27,726 ) (31,733 )
Purchase of derivatives (756 ) 364
Disposal of investments (other than money market<br>investments) 29,010 22,657
Disposal of derivatives 76 2,363
Net purchase of investments for account of<br>policyholders 8,567 4,320
Net change in cash collateral (2,682 ) 2,543
Net purchase of<br>money market investments (857 ) (334 )
Cash flow movements on operating items notreflected in income **** 5,633 **** **** 181 ****
Tax received / (paid) 32 (39 )
Other 15 10
Net cash flows from operatingactivities **** (2,364 ) **** (1,053 )
Purchase of individual intangible assets (other than<br>VOBA and future servicing rights) (24 ) (25 )
Purchase of equipment and real estate for own<br>use (45 ) (46 )
Acquisition of subsidiaries, net of cash - (14 )
Acquisition joint ventures and associates (72 ) (258 )
Disposal of individual intangible assets (other than<br>VOBA and future servicing rights) - 3
Disposal of equipment 2 1
Disposal of subsidiaries, net of cash 58 -
Disposal joint ventures and associates - 154
Dividend received<br>from joint ventures and associates 80 85
Net cash flows from investingactivities **** - **** **** (100 )
Purchase of treasury shares (133 ) -
Proceeds from TRUPS^1^, subordinated loans and borrowings 3,682 2,575
Repayment of perpetuals (212 ) -
Repayment of TRUPS^1^, subordinated loans and borrowings (2,900 ) (2,862 )
Dividends paid (120 ) (64 )
Coupons on perpetual securities (34 ) (36 )
Payment of Right-of-use Assets (44 ) (45 )
Change in ownership non-controlling interests 66 -
Net cash flows from financing activities **** 305 **** **** (433 )
Net increase / (decrease) in cash and cashequivalents ^2^ **** (2,060 ) **** (1,587 )
Net cash and cash equivalents at the beginning of the<br>reporting period 8,372 12,263
Effects of changes<br>in exchange rate 44 (78 )
Net cash and cashequivalents at the end of the reporting period **** 6,356 **** **** 10,599 ****

^1^Trust pass-through securities

^2^Included in net increase / (decrease)in cash and cash equivalents are interest received EUR 3,910 million (2020: EUR 3,777 million) dividends received EUR 1,267 million (2020: EUR 1,407 million) and interest paid EUR 75 million (2020: EUR 196 million). All included in operating activities except for dividend received from joint ventures and associates EUR 80 million (2020: EUR 85 million).

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Notes to the Condensed consolidated interim financial statements

Amounts are in EUR millions, unless otherwise stated.

Aegon N.V., incorporated and domiciled in the Netherlands, is a public limited liability company organized under Dutch law and recorded in the Commercial Register of The Hague under number 27076669 and with its registered address at Aegonplein 50, 2591 TV, The Hague, the Netherlands. Aegon N.V. serves as the holding company for the Aegon Group and has listings of its common shares in Amsterdam and New York.

Aegon N.V. (or ‘the Company’) and its subsidiaries (‘Aegon’ or ‘the Group’) have life insurance and pensions operations and are also active in savings and asset management operations, accident and health insurance, general insurance and to a limited extent banking operations. Aegon focuses on three core markets (the United States, the Netherlands, and the United Kingdom), three growth markets (Spain & Portugal, China, and Brazil) and one global asset manager. Headquarters are located in The Hague, the Netherlands. The Group employs over 22,000 people worldwide.

  1. Basis of presentation

The condensed consolidated interim financial statements as at, and for the nine-month period ended, September 30, 2021 (‘YTD 2021’) and the third quarter 2021 (‘3Q 2021’), have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’, as adopted by the European Union (hereafter ‘IFRS-EU’). They do not include all of the information required for a full set of financial statements prepared in accordance with IFRS-EU and should therefore be read together with the 2020 consolidated financial statements of Aegon N.V. as included in Aegon’s Integrated Annual Report for 2020. Aegon’s Integrated Annual Report for 2020 is available on its website (aegon.com).

The condensed consolidated interim financial statements have been prepared in accordance with the historical cost convention as modified by the revaluation of investment properties and those financial instruments (including derivatives) and financial liabilities that have been measured at fair value. The condensed consolidated interim financial statements as at, and for the period ended, September 30, 2021, were approved by the Supervisory Board on November 10, 2021.

The condensed consolidated interim financial statements are presented in euro (EUR) and all values are rounded to the nearest million unless otherwise stated. The consequence is that the rounded amounts may not add up to the rounded total in all cases.

The published figures in these condensed consolidated interim financial statements are unaudited.

  1. Significant accounting policies

All accounting policies and methods of computation applied in the condensed consolidated interim financial statements are the same as those applied in the 2020 consolidated financial statements. New IFRS accounting standards and amendments that became effective on or after January 1, 2021 had no material impact on Aegon’s financial position or condensed consolidated interim financial statements (refer to paragraph 2.1).

2.1. New IFRS accounting standards effective from 2021

In 2021, the following amendments to existing standards issued by the IASB became effective:

◆ Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16);<br>
◆ Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4 Insurance Contracts); and<br>
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◆ COVID-19-Related Rent Concessions<br>beyond 30 June 2021 (Amendment to IFRS 16).
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Condensed consolidated interim financial statements for the periods ended September 30, 2021

2.2. Future adoption of new IFRS-EU accounting standards and amendments

For a complete overview of IFRS standards and amendments issued before January 1, 2021, which will be applied in future years and were not early adopted by the Group, please refer to Aegon’s Integrated Annual Report for 2020.

After January 1, 2021, the IASB issued the following amendments:

◆ Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2);
◆ Definition of Accounting Estimates (Amendments to IAS 8); and
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◆ Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12).<br>
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These amendments were not early adopted by Aegon and are not expected to have significant impact on Aegon’s financial position or condensed consolidated interim financial statements.

2.3. Judgments and critical accounting estimates

Preparing the condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions, including the likelihood, timing or amount of future transactions or events, that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. These estimates are inherently subject to change and actual results could differ from those estimates.

Uncertainty resulting from COVID-19

In the first nine-month period of 2021 the COVID-19 pandemic continued to cause significant disruption to business, markets, and the industry. Progress on vaccinations has reduced the spread of COVID-19 and will likely continue to reduce the effects of the public health crisis on the economy. However, the pace of vaccinations has slowed down, and new strains of the virus and reduced availability of healthcare remain risks. Equity markets in Aegon’s three main markets increased in the first nine months of 2021 to grow following the drop of equity markets in the first half of 2020. Although interest rates remain low, they are well above lower levels of interest rates observed in early 2020.

In the first nine-month period of 2021, Aegon’s operating result in the Americas was impacted by EUR 259 million of adverse mortality in Life, of which EUR 171 million (first nine-month period of 2020: EUR 81 million) of claims are directly attributable to COVID-19 as the cause of death. This was offset by favorable morbidity experience in Accident & Health and is mostly related to Long-Term Care insurance with higher claims terminations due to higher mortality and discharges from care facilities. In 3Q 2021, Aegon continue to observe positive morbidity in Long-Term Care, but less favorable when compared to prior year. In 3Q 2021, Aegon started to release a portion of the Long-Term Care incurred but not reported (IBNR) reserve established during the peak of the pandemic.

In the first nine-month period of 2021 the total impairment charges amounted to EUR 15 million, compared to EUR 283 million in the first nine-month period of 2020. In 2020, impairment losses were significantly higher than in previous reporting periods and were the result of the uncertainty in the market and adverse impact of COVID-19. Aegon recorded impairments primarily in the energy, energy maintenance technologies, and communications sectors.

Aegon Group’s Solvency II capital position remained at a strong level increasing from 196% per December 31, 2020, to 209% per September 30, 2021.

Aegon continues to monitor the relevant market and the economic factors to proactively manage the associated risks. Management believes that the most significant risks are related to financial markets (particularly credit, equity, and interest rates risks) and underwriting risks (particularly related to mortality, morbidity, and policyholder behavior).

Actuarial and economic assumptions

In the first nine-month period of 2021, Aegon implemented actuarial assumption and model updates resulting in a net EUR 46 million charge to income before tax (first nine-month period of 2020: EUR 504 million charge). This is mainly related to Aegon’s businesses in the Americas and the Netherlands.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

The indexation assumption for a specific pensions portfolio linked to Dutch industry pension funds has been updated after a sharp rise of the price inflation curve. Instead of a historical analysis, the substantiation of the updated indexation assumption will be based on a new forward-looking method that also takes into account the drivers (coverage ratio, asset mix, expected returns) for indexation pay-out by industry pension funds. The updated indexation assumption resulted in a lower market value liability of EUR 75 million. The release of the liability has been recorded as part of Benefits and expenses and in Other income / (charges) for segment reporting purposes.

In addition, the Variable Annuities Guaranteed Lifetime Withdrawal Benefit (VA GLWB) surrender floor in the Americas is updated from 2% to 1.5% to reflect latest portfolio and industry experience. The impact of this assumption change resulted in an EUR 123 million charge to income before tax and has been recorded as part of Benefits and expenses and in Other income / (charges) for segment reporting purposes.

Sensitivities

Sensitivity onvariable annuities and variable life insurance products in the United States

Sensitivities of Aegon’s variable annuities and variable life insurance products in the United States on expected long-term equity growth rate have not significantly changed compared to the sensitivities as reported in the Aegon’s 2020 Integrated Annual Report, except for sensitivities to long-term equity growth rate.

A decrease of 1% in the expected long-term equity growth rate with regard to Aegon’s variable annuities and variable life insurance products in the United States would result in a decrease in DPAC and VOBA balances and reserve strengthening of approximately EUR 98 million (December 31, 2020: EUR 108 million). The DPAC and VOBA balances for these products in the United States amounted to EUR 2.1 billion (December 31, 2020: EUR 2.4 billion).

Sensitivity on liability adequacy test (LAT) in theNetherlands

At September 30, 2021, the liability adequacy test (LAT) of Aegon the Netherlands remains in a deficit position. The LAT assesses the adequacy of the insurance liabilities by comparing them to their fair value. Aegon the Netherlands adjusts the outcome of the LAT for certain unrealized gains in the bond portfolio and certain differences between the fair value and the book value of assets measured at amortized cost, mainly residential mortgages. Please also refer to Note 2.19f Liability adequacy testing of Aegon’s 2020 Integrated Annual Report for further details on the accounting policy.

The LAT deficit per September 30, 2021 in Aegon the Netherlands amounted to EUR 4.7 billion (December 31, 2020: EUR 7.0 billion), which was partially offset by the shadow loss recognition of EUR 3.2 billion (December 31, 2020: EUR 4.5 billion), resulting in a net deficit of EUR 1.5 billion (December 31, 2020: EUR 2.5 billion). The improvement of the LAT deficit amounting to EUR 1.0 billion is driven by market movements (mainly increased interest rates and tightened credit spreads) and is recorded in the income statement as part of benefits and expenses for the nine-month period ended September 30, 2021.

Sensitivities of Aegon the Netherlands on bond credit spread, mortgage spread and liquidity premium assumptions to assess the impact on the LAT have not significantly changed compared to the sensitivities as reported in the 2020 Aegon’s Integrated Annual Report, except for sensitivities to interest rate. An increase of 100 bps in interest rate would result in a decrease in LAT deficit of EUR 3.2 billion **** (December 31, 2020: EUR 3.9 billion). A decrease of 100 bps would result in an increase in LAT deficit of approximately EUR 4.2 billion (December 31, 2020: EUR 5.2 billion).

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

2.4. Other

Taxes

Taxes on income for the nine-month period ended September 30, 2021, are calculated using the tax rate that is estimated to be applicable to earnings for the full year.

Exchange rates

Assets and liabilities of foreign operations are translated to the presentation currency at the closing rates on the reporting date. Income, expenses and capital transactions (such as dividends) are translated at average exchange rates or at the prevailing rates on the transaction date, if more appropriate. The following exchange rates (most important rates) are applied for the condensed consolidated interim financial statements:

Closing exchange rates

USD GBP
September 30,<br>2021 1 EUR 1.1590 0.8595
December 31,<br>2020 1 EUR 1.2236 0.8951
Weighted average exchange rates
USD GBP
Nine months ended<br>September 30, 2021 1 EUR 1.1964 0.8637
Nine months ended<br>September 30, 2020 1 EUR 1.1245 0.8848
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Condensed consolidated interim financial statements for the periods ended September 30, 2021

  1. Segment information

3.1. Change in name convention of performance measure

As disclosed in the 1Q 2021 interim financial statements, Aegon has changed the name convention of its primary performance measure to improve alignment with industry practice. As of 2021, Aegon will no longer refer to underlying earnings before tax for segment reporting purposes, instead Aegon will refer to Operating result. Furthermore, Aegon introduced a new grouping of non-operating result which is the sum of Fair value items, Realized gains / (losses) on investments, and Net impairments. Other income / charges remains a separate category outside of Aegon’s operating result.

3.2. 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:

1. The running cost of the US macro hedge related to the variable annuity portfolio are recorded within Operating result<br>instead of in Fair value items. Management views this as a better reflection of Aegon’s operating performance and will make Aegon’s operating result more relevant.
2. The periodic intangibles unlocking in the US Life and TLB business is recorded in Fair value items, instead of<br>Operating result, to improve the insight in Aegon’s recurring operating result.
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3. Results from run-off businesses in the US are part of Aegon’s operating<br>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<br>run-off businesses has diminished and continuing to report this as a separate line item is considered no longer relevant.
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4. Following the announcement to sell Aegon’s operations in CEE, results from these businesses, previously reported<br>in operating result, are prospectively recorded within Other income / charges.
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For segment reporting purposes, the impact of these changes in measurement compared to the first nine months of 2020 was an increase in Aegon’s consolidated operating result of EUR 16 million, as certain losses are no longer reported in Fair value items (EUR 30 million) and results of Run-off businesses are no longer separately reported (EUR 13 million gain). There is no impact on Aegon’s net result, shareholders’ equity, dividend per share, or any of the main schedules included in Aegon’s condensed consolidated interim 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.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

3.3. Segment results

The following table presents Aegon’s segment results.

EUR millions Americas The<br><br><br>Netherlands United<br><br><br>Kingdom International Asset<br><br><br>management Holdings and<br> <br>other activities Eliminations Segment total Joint ventures<br> <br>and associates<br><br><br>eliminations Consolidated
Threemonths ended September 30, 2021
Operatingresult geographically **** 160 **** **** 190 **** **** 51 **** **** 36 **** **** 58 **** **** (52 ) **** (1 ) **** 443 **** **** 22 **** **** 465 ****
Fair value<br>items 126 (261 ) 13 (4 ) - (4 ) - (130 ) (38 ) (167 )
Realized gains /<br>(losses) on investments 56 72 - 4 - - - 132 (2 ) 130
Impairment<br>charges (9 ) (3 ) - - - (4 ) - (16 ) (1 ) (17 )
Impairment<br>reversals 3 19 - - - - - 22 - 22
Non-operating items **** 177 **** **** (173 ) **** 13 **** **** - **** **** - **** **** (8 ) **** - **** **** 9 **** **** (40 ) **** (31 )
Other income /<br>(charges) (539 ) (2 ) (2 ) 11 (6 ) (21 ) - (559 ) - (559 )
Result beforetax **** (202 ) **** 15 **** **** 62 **** **** 48 **** **** 52 **** **** (81 ) **** (1 ) **** (107 ) **** (18 ) **** (124 )
Income tax (expense) / benefit 72 (6 ) (13 ) (12 ) (15 ) 20 - 47 18 65
Net result **** (130 ) **** 10 **** **** 49 **** **** 37 **** **** 36 **** **** (61 ) **** (1 ) **** (60 ) **** - **** **** (60 )
Inter-segmentoperating result after tax (5 ) (23 ) (26 ) (8 ) 49 13
Revenues
Life insurance<br>gross premiums 1,780 304 1,042 257 - - - 3,384 (187 ) 3,196
Accident and health<br>insurance 315 39 - 21 - - - 375 (11 ) 364
Property & casualty insurance - 34 - 107 - - - 141 (39 ) 101
Total grosspremiums **** 2,095 **** **** 377 **** **** 1,042 **** **** 385 **** **** - **** **** - **** **** - **** **** 3,899 **** **** (238 ) **** 3,662 ****
Investment<br>income 745 485 141 90 3 62 (67 ) 1,459 (19 ) 1,440
Fee and commission<br>income 481 83 60 15 183 - (46 ) 775 (67 ) 708
Other revenues 3 - - 1 1 6 - 11 (4 ) 6
Total revenues **** 3,325 **** **** 944 **** **** 1,243 **** **** 491 **** **** 187 **** **** 67 **** **** (113 ) **** 6,144 **** **** (328 ) **** 5,816 ****
Inter-segment revenues - 4 - - 46 63
EUR millions Americas The<br><br><br>Netherlands United<br><br><br>Kingdom International Asset<br><br><br>management Holdings<br>and<br> <br>other activities Eliminations Segment total Joint ventures<br> <br>and associates<br><br><br>eliminations Consolidated
Threemonths ended September 30, 2021
Operatingresult geographically **** 272 **** **** 176 **** **** 31 **** **** 44 **** **** 58 **** **** (54 ) **** 1 **** **** 526 **** **** (1 ) **** 526 ****
Fair value<br>items 156 (706 ) (36 ) - - 8 - (577 ) (17 ) (594 )
Realized gains /<br>(losses) on investments 20 7 - 31 - - - 59 (3 ) 56
Impairment<br>charges (30 ) 12 - - - (6 ) - (25 ) - (25 )
Impairment<br>reversals 4 - - - - - - 5 - 5
Non-operating items **** 151 **** **** (686 ) **** (36 ) **** 31 **** **** - **** **** 2 **** **** - **** **** (538 ) **** (20 ) **** (558 )
Other income /<br>(charges) (110 ) (362 ) (12 ) (10 ) (1 ) (41 ) - (536 ) - (536 )
Result beforetax **** 312 **** **** (873 ) **** (17 ) **** 65 **** **** 57 **** **** (93 ) **** 1 **** **** (547 ) **** (21 ) **** (568 )
Income tax (expense) / benefit (45 ) 194 5 (19 ) (16 ) 11 - 129 21 150
Net result **** 267 **** **** (679 ) **** (12 ) **** 46 **** **** 41 **** **** (82 ) **** 1 **** **** (418 ) **** - **** **** (418 )
Inter-segmentoperating result after tax (12 ) (21 ) (20 ) (6 ) 44 15
Revenues
Life insurance<br>gross premiums 1,723 320 1,000 228 - 1 (1 ) 3,271 (152 ) 3,120
Accident and health<br>insurance 332 44 6 23 - - - 405 (11 ) 394
Property & casualty insurance - 32 - 96 - - - 128 (31 ) 97
Total grosspremiums **** 2,054 **** **** 397 **** **** 1,006 **** **** 346 **** **** - **** **** 1 **** **** (1 ) **** 3,804 **** **** (194 ) **** 3,610 ****
Investment<br>income 722 522 187 90 2 64 (71 ) 1,515 (17 ) 1,498
Fee and commission<br>income 421 62 46 12 218 - (44 ) 714 (113 ) 601
Other revenues 3 - - - - 1 - 4 (3 ) 1
Total revenues **** 3,199 **** **** 981 **** **** 1,239 **** **** 448 **** **** 220 **** **** 65 **** **** (116 ) **** 6,037 **** **** (327 ) **** 5,710 ****
Inter-segment revenues - 6 - - 44 66
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Condensed consolidated interim financial statements for the periods ended September 30, 2021

EUR millions Americas The<br><br><br>Netherlands United<br><br><br>Kingdom International Asset<br><br><br>management Holdings and<br><br><br>other activities Eliminations Segment total Joint ventures<br> <br>and associates<br><br><br>eliminations Consolidated
Nine months ended September 30,2021
Operating result geographically **** 605 **** **** 560 **** **** 135 **** 98 **** 204 **** **** (164 ) **** (1 ) **** 1,436 **** **** (11 ) **** 1,425 ****
Fair value items 454 (81 ) (53 ) (7 ) (1 ) 27 1 341 (56 ) 285
Realized gains / (losses) on investments 227 88 - 7 2 1 - 325 (7 ) 318
Impairment charges (16 ) (5 ) - - - (11 ) - (32 ) (1 ) (32 )
Impairment reversals 27 33 - 1 - 8 - 68 - 68
Non-operating items **** 692 **** **** 35 **** **** (53 ) - **** 1 **** **** 26 **** **** 1 **** **** 703 **** **** (63 ) **** 640 ****
Other income / (charges) (757 ) 124 4 40 (12 ) (110 ) - (710 ) 12 (698 )
Result before tax **** 540 **** **** 719 **** **** 86 **** 139 **** 192 **** **** (247 ) **** - **** **** 1,429 **** **** (62 ) **** 1,367 ****
Income tax<br>(expense) / benefit (39 ) (178 ) (2 ) (30 ) (59 ) 53 - (254 ) 62 (192 )
Netresult **** 500 **** **** 541 **** **** 84 **** 110 **** 134 **** **** (194 ) **** - **** **** 1,175 **** **** - **** **** 1,175 ****
Inter-segment operating result aftertax (17 ) (69 ) (71 ) (25 ) 142 39
Revenues
Life insurance gross premiums 5,259 1,011 3,426 893 - - - 10,589 (625 ) 9,964
Accident and health insurance 935 220 3 161 - - - 1,319 (56 ) 1,263
Property & casualty insurance - 102 - 322 - - - 424 (123 ) 301
Total gross premiums **** 6,194 **** **** 1,333 **** **** 3,429 **** 1,376 **** - **** **** - **** **** - **** **** 12,332 **** **** (803 ) **** 11,529 ****
Investment income 2,154 1,510 1,304 266 8 181 (195 ) 5,228 (54 ) 5,174
Fee and commission income 1,400 223 162 43 606 - (135 ) 2,299 (263 ) 2,036
Other<br>revenues 8 - - 2 2 9 - 21 (10 ) 10
Totalrevenues **** 9,756 **** **** 3,066 **** **** 4,896 **** 1,686 **** 616 **** **** 190 **** **** (330 ) **** 19,880 **** **** (1,131 ) **** 18,749 ****
Inter-segmentrevenues 1 10 - - 135 185
EUR millions Americas The<br><br><br>Netherlands United<br><br><br>Kingdom International Asset<br><br><br>management Holdings and<br><br><br>other activities Eliminations Segment total Joint ventures<br> <br>and associates<br><br><br>eliminations Consolidated
Nine months ended September 30,2021
Operating result geographically **** 533 **** **** 497 **** **** 112 **** 126 **** 128 **** **** (167 ) **** 2 **** **** 1,231 **** **** 9 **** **** 1,240 ****
Fair value items (598 ) 674 53 (8 ) (7 ) (12 ) - 102 (47 ) 55
Realized gains / (losses) on investments 25 10 - 39 1 - - 75 (8 ) 67
Impairment charges (164 ) (54 ) - (5 ) - (10 ) - (233 ) - (233 )
Impairment reversals 19 1 - - - - - 20 - 20
Non-operating items **** (717 ) **** 630 **** **** 53 **** 26 **** (6 ) **** (22 ) **** - **** **** (36 ) **** (55 ) **** (91 )
Other income / (charges) (1,048 ) (410 ) (65 ) 15 (1 ) (97 ) - (1,607 ) 1 (1,606 )
Result before tax **** (1,233 ) **** 717 **** **** 100 **** 167 **** 121 **** **** (286 ) **** 2 **** **** (413 ) **** (45 ) **** (457 )
Income tax<br>(expense) / benefit 335 (121 ) 2 (30 ) (34 ) 45 - 197 45 242
Netresult **** (898 ) **** 595 **** **** 103 **** 137 **** 87 **** **** (241 ) **** 2 **** **** (216 ) **** - **** **** (216 )
Inter-segment operating result aftertax (31 ) (66 ) (65 ) (24 ) 136 50
Revenues
Life insurance gross premiums 5,340 1,298 3,735 839 - 4 (3 ) 11,213 (567 ) 10,646
Accident and health insurance 1,059 213 19 173 - - - 1,465 (48 ) 1,416
Property & casualty insurance - 98 - 290 - - - 388 (96 ) 292
Total gross premiums **** 6,400 **** **** 1,609 **** **** 3,755 **** 1,302 **** - **** **** 4 **** **** (3 ) **** 13,066 **** **** (711 ) **** 12,354 ****
Investment income 2,283 1,585 1,446 276 5 193 (210 ) 5,578 (46 ) 5,532
Fee and commission income 1,217 187 143 37 554 - (133 ) 2,005 (234 ) 1,771
Other<br>revenues 7 - - 1 1 3 - 12 (9 ) 3
Totalrevenues **** 9,907 **** **** 3,381 **** **** 5,344 **** 1,616 **** 560 **** **** 200 **** **** (347 ) **** 20,661 **** **** (1,000 ) **** 19,661 ****
Inter-segmentrevenues 1 15 - - 133 198

Aegon’s segment information is prepared by consolidating on a proportionate basis Aegon’s joint ventures and associated companies.

The Americas recorded other charges of EUR 470 million driven by expanding the Variable Annuity dynamic hedging program (EUR 361 million) and executing the lump-sum buy-out program (EUR 109 million). Refer to note 7 Benefits and expenses for further details.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

3.4. Investments

Amounts included in the tables on investments are presented on an IFRS-EU 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.

EUR Millions Americas The<br>Netherlands United<br>    Kingdom International Asset<br>Management Holding and<br><br><br>other<br> <br>activities Eliminations Total
September 30, 2021
Investments
Shares 476 1,338 30 74 - 3 - 1,920
Debt securities 61,400 26,750 1,163 8,093 9 - - 97,415
Loans 11,076 35,748 - 108 - 40 - 46,972
Other financial assets 8,422 85 776 196 232 - - 9,711
Investments in real<br>estate 34 2,450 - 16 - - - 2,500
Investments general account **** 81,407 **** 66,371 **** 1,970 **** 8,488 **** 241 **** 43 **** - **** **** 158,519
Shares - 8,616 19,110 241 - - (4 ) 27,963
Debt securities - 11,927 7,535 136 - - - 19,598
Unconsolidated investment funds 111,344 711 70,285 610 - - - 182,950
Other financial assets - 4,341 5,287 3 - - - 9,631
Investments in real<br>estate - - 490 - - - - 490
Investments for account ofpolicyholders **** 111,344 **** 25,595 **** 102,708 **** 989 **** - **** - **** (4 ) **** 240,632
Investments on balance sheet **** 192,751 **** 91,966 **** 104,677 **** 9,477 **** 241 **** 43 **** (4 ) **** 399,151
Off balancesheet investments third parties **** 233,022 **** 7,104 **** 134,009 **** 2,215 **** 203,292 **** - **** - **** **** 579,642
Total revenuegenerating investments **** 425,773 **** 99,070 **** 238,686 **** 11,692 **** 203,533 **** 43 **** (4 ) **** 978,792
Investments
Available-for-sale 66,681 24,912 1,417 8,353 213 - - 101,576
Loans 11,076 35,748 - 108 - 40 - 46,972
Financial assets at fair value through profit or<br>loss 114,960 28,856 102,771 1,000 28 3 (4 ) 247,613
Investments in real<br>estate 34 2,450 490 16 - - - 2,989
Totalinvestments on balance sheet **** 192,751 **** 91,966 **** 104,677 **** 9,477 **** 241 **** 43 **** (4 ) **** 399,151
Investments in joint ventures 58 330 - 927 334 40 - 1,689
Investments in associates - 1,046 8 22 149 21 (14 ) 1,232
Other<br>assets 35,654 14,747 4,813 2,679 405 26,344 (27,031 ) 57,611
Consolidatedtotal assets **** 228,463 **** 108,088 **** 109,498 **** 13,105 **** 1,130 **** 26,448 **** (27,049 ) **** 459,684
EUR Millions Americas The<br>Netherlands United<br>Kingdom International Asset<br>Management Holding and<br>other<br>activities Eliminations Total
December 31, 2020
Investments
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 34,936 - 120 - 40 - 45,573
Other financial assets 7,056 91 883 102 152 23 - 8,308
Investments in real<br>estate 37 2,331 - 16 - - - 2,385
Investments general account **** 77,431 **** 69,615 **** 1,994 **** 8,238 **** 208 **** 108 **** - **** **** 157,595
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<br>estate - - 467 - - - - 467
Investments for account ofpolicyholders **** 104,374 **** 25,603 **** 93,240 **** 959 **** - **** - **** (3 ) **** 224,172
Investments on balance sheet **** 181,805 **** 95,218 **** 95,234 **** 9,197 **** 208 **** 108 **** (3 ) **** 381,767
Off balancesheet investments third parties **** 215,216 **** 6,144 **** 119,347 **** 6,752 **** 192,098 **** - **** (336 ) **** 539,220
Total revenuegenerating investments **** 397,021 **** 101,362 **** 214,580 **** 15,948 **** 192,307 **** 108 **** (339 ) **** 920,987
Investments
Available-for-sale 63,864 25,972 1,494 8,088 134 28 - 99,580
Loans 10,477 34,936 - 120 - 40 - 45,573
Financial assets at fair value through profit or<br>loss 107,427 31,979 93,272 973 74 40 (3 ) 233,762
Investments in real<br>estate 37 2,331 467 16 - - - 2,853
Totalinvestments on balance sheet **** 181,805 **** 95,218 **** 95,234 **** 9,197 **** 208 **** 108 **** (3 ) **** 381,767
Investments in joint ventures - 327 - 846 204 - - 1,376
Investments in associates 60 1,004 8 35 151 21 (15 ) 1,264
Other<br>assets 35,010 19,467 3,740 2,405 545 32,695 (33,400 ) 60,461
Consolidatedtotal assets **** 216,875 **** 116,016 **** 98,982 **** 12,482 **** 1,109 **** 32,824 **** (33,419 ) **** 444,868
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Condensed consolidated interim financial statements for the periods ended September 30, 2021

  1. Premium income and premiums paid to reinsurers
EUR millions 3Q<br><br><br>2021 3Q<br><br><br>2020 YTD<br><br><br>2021 YTD<br>            2020
Premium income
Life insurance 3,196 3,120 9,964 10,646
Non-life insurance 466 490 1,565 1,708
Totalpremium income **** 3,662 **** 3,610 **** 11,529 **** 12,354
Accident and health insurance 364 394 1,263 1,416
Property & casualty insurance 101 97 301 292
Non-life Insurance premium income **** 466 **** 490 **** 1,565 **** 1,708
Premiums paid to reinsurers ^1^
Life insurance 510 523 1,574 1,638
Non-life insurance 50 39 143 126
Totalpremiums paid to reinsurers **** 559 **** 563 **** 1,718 **** 1,763
Accident and health insurance 43 33 123 106
Property & casualty insurance 7 6 20 19
Non-life Insurance paid to reinsurers **** 50 **** 39 **** 143 **** 126

^1^   Premiums paid to reinsurers are recorded within Benefits and expenses in the income statement - refer to note Benefits and expenses.

Premium income in the first nine months of 2021 decreased, compared to the first nine months of 2020, mainly driven by the reduction of the Individual Life portfolio in NL, reduction of upgraded Life insurance policies to the retirement platform in the UK, and reduced new business related to COVID-19.

  1. Investment income
EUR millions 3Q<br><br><br>2021 3Q<br><br><br>2020 YTD<br><br><br>2021 YTD<br>            2020
Interest income 1,309 1,311 3,908 4,116
Dividend income 106 156 1,192 1,321
Rental<br>income 25 31 74 95
Totalinvestment income **** 1,440 **** 1,498 **** 5,174 **** 5,532
Investment income related to general<br>account 1,228 1,224 3,617 3,815
Investment income<br>for account of policyholders 212 274 1,557 1,717
Total **** 1,440 **** 1,498 **** 5,174 **** 5,532
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Condensed consolidated interim financial statements for the periods ended September 30, 2021

  1. Results from financial transactions
EUR millions 3Q<br><br><br>2021 3Q<br><br><br>2020 YTD<br><br><br>2021 YTD<br>2020
Net fair value change of general account financial<br>investments at FVTPL other than derivatives 268 124 636 (94)
Realized gains /(losses) on financial<br>investments 134 56 343 53
Gains /(losses) on investments in real<br>estate 70 23 110 34
Net fair value change of derivatives (355) 69 (1,920) (58)
Net fair value change on for account of policyholder<br>financial assets at FVTPL 841 7,354 14,837 3,059
Net fair value change on investments in real estate<br>for account of policyholders 15 (5) 24 (41)
Net foreign currency gains /(losses) 39 (13) 162 (35)
Net fair value<br>change on borrowings and other financial liabilities - 6 - 11
Total **** 1,012 **** 7,614 **** 14,193 **** 2,929

Net fair value change on for account of policyholder financial assets at fair value through profit or loss decreased in 3Q 2021 compared to 3Q 2020, mainly from less favorable equity markets. On a year-to-date basis, the result increased driven by the impact of positive equity markets and as 2020 was significantly impacted by COVID-19. Net fair value changes on for account of policyholder financial assets at fair value through profit or loss are offset by changes in technical provisions reported as part of the lines “Change in valuation of liabilities for insurance contracts” and “Change in valuation of liabilities for investment contracts” in note 7 Benefits and expenses.

7 Benefits and expenses

EUR millions 3Q<br><br><br>2021 3Q<br><br><br>2020 YTD<br><br><br>2021 YTD<br><br><br>2020
Claims and benefits 6,593 13,823 31,068 22,549
Employee expenses 506 484 1,473 1,522
Administration expenses 377 385 1,164 1,207
Deferred expenses (182) (177) (487) (577)
Amortization<br>charges 583 198 927 712
Total **** 7,876 **** 14,713 **** 34,145 **** 25,412
Benefits and claims<br>paid life 4,199 4,432 14,827 10,678
Benefits and claims paid non-life 361 355 1,053 1,134
Change in valuation of liabilities for insurance<br>contracts 741 7,480 9,557 8,945
Change in valuation of liabilities for investment<br>contracts 155 429 2,227 (1,705)
Other (4) (2) (27) 3
Policyholder claims and benefits **** 5,453 **** 12,694 **** 27,637 **** 19,056
Premium paid to reinsurers 559 563 1,718 1,763
Profit sharing and rebates 2 4 6 8
Commissions 579 562 1,707 1,721
Total **** 6,593 **** 13,823 **** 31,068 **** 22,549

Aegon expanded the dynamic hedge covering the equity and interest rate risks of its US Variable Annuities block with guaranteed minimum withdrawal benefits (GMWB) to the entire VA portfolio. Implementing the VA dynamic hedging program for variable annuities with interest sensitive guaranteed minimum income benefits (GMIBs) and guaranteed minimum death benefits (GMDBs) resulted in a EUR 350 million onetime charge as included in “Amortization charges” and EUR 11 million one-time charge as included in “Policyholder claims and benefits”. In addition, Aegon launched a lump-sum buy-out program in July 2021 for policyholders of variable annuities with GMIB riders whose financial objectives may have changed since the issuance of their policies. The execution of the lump-sum buy-out program resulted in a charge of EUR 109 million as recorded in “Policyholder claims and benefits”, to record actual and expected offer acceptances.

The lines “Change in valuation of liabilities for insurance contracts” and “Change in valuation of liabilities for investment contracts” reflect changes in technical provisions resulting from “Net fair value changes on for account of policyholder financial assets at fair value through profit or loss” included in note 6 Results from financial transactions. In addition, the line “Change in valuation of liabilities for insurance contracts” includes the movement of the technical provisions for life insurance contracts.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

  1. Other charges

Other charges in the first nine months of 2021 are mainly due to the settlements of litigation related to monthly deduction rate adjustments on certain universal life policies, for more details refer to Note 19 commitments and contingencies.

  1. Income tax

The income tax benefit includes recurring beneficial impacts of tax exempt income and US tax credits. Tax exempt income is comprised of the regular non-taxable items such as the dividend received deduction in the US and the participation exemption in the Netherlands. Tax credits mainly include tax benefits from US investments that provide affordable housing to individuals and families that meet median household income requirements.

  1. Investments
EUR millions September 30,<br>2021 December 31,<br>2020
Available-for-sale (AFS) 101,576 99,580
Loans 46,972 45,573
Financial<br>assets at fair value through profit or loss (FVTPL) 7,471 10,057
Financial assets, for general account,excluding derivatives **** 156,019 **** 155,210
Investments in<br>real estate 2,500 2,385
Totalinvestments for general account, excluding derivatives **** 158,519 **** 157,595
Financial assets, for general account, excluding derivatives
--- --- --- --- ---
EUR millions AFS FVTPL Loans Total
Shares 349 1,572 - 1,920
Debt securities 94,806 2,609 - 97,415
Money market and other short-term<br>investments 5,483 131 - 5,613
Mortgages loans - - 40,578 40,578
Private loans - - 4,435 4,435
Deposits with financial institutions - - 82 82
Policy loans - - 1,866 1,866
Other 939 3,159 10 4,108
September 30, 2021 101,576 7,471 46,972 156,019
AFS FVTPL Loans Total
Shares 345 1,634 - 1,979
Debt securities 93,681 5,669 - 99,350
Money market and other short-term<br>investments 4,558 109 - 4,667
Mortgages loans - - 39,298 39,298
Private loans - - 4,358 4,358
Deposits with financial institutions - - 92 92
Policy loans - - 1,801 1,801
Other 996 2,645 25 3,665
December 31, 2020 99,580 10,057 45,573 155,210

Total investments for general account in the first nine months of 2021 increased, compared to the end of 2020 position, mainly due to fair value increases on assets from recovery in equity markets in US, partially offset by fair value decreases on assets from higher interest rates in NL and the positive impact of foreign currency translations.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

  1. Investments for account of policyholders
EUR millions September 30, 2021 December 31, 2020
Shares 27,963 25,288
Debt securities 19,598 19,885
Money market and short-term investments 1,473 1,051
Deposits with financial institutions 3,817 4,185
Unconsolidated investment funds 182,950 168,777
Other 4,341 4,520
Total investments for account ofpolicyholders at fair value through profit or loss, excluding derivatives **** 240,142 **** 223,705
Investment<br>in real estate 490 467
Totalinvestments for account of policyholders **** 240,632 **** 224,172

Investments for account of policyholders in the first nine months of 2021 increased, compared to the end of 2020 position, mainly due to positive market movements in US and UK and the impact of foreign currency translations.

  1. Investments in joint ventures and associates

During 3Q 2021, Aegon amended its agreement related to the investment in Mongeral Aegon and injected EUR 40 million in the undertaking. Following the amendment and capital injection, the investment required reclassification from Investments in associates to Investments in joint ventures as the level of influence was affected. The reclassification, reflecting the carrying amount of the investment, amounted to EUR 97 million.

  1. Fair value

The following tables provide an analysis of financial instruments recorded at fair value on a recurring basis by level of the fair value hierarchy:

Fair value hierarchy
EUR millions September 30, 2021 December 31, 2020
Level I Level II Level III Total Level I Level II Level III Total
Financial assets carried at fairvalue
Available-for-sale investments
Shares 84 77 187 349 90 82 173 345
Debt securities 25,866 68,406 534 94,806 28,300 64,914 467 93,681
Money markets and other short-term<br>instruments 787 4,695 - 5,483 832 3,726 - 4,558
Other<br>investments at fair value - 357 582 939 - 415 581 996
Total Available-for-sale investments **** 26,737 **** 73,536 **** 1,303 **** 101,576 **** 29,222 **** 69,136 **** 1,221 **** 99,580
Fair value through profit or loss
Shares 82 224 1,265 1,572 80 226 1,329 1,634
Debt securities 105 2,394 110 2,609 168 5,260 242 5,669
Money markets and other short-term<br>instruments 17 113 - 131 17 93 - 109
Other investments at fair value 1 386 2,772 3,159 1 470 2,174 2,645
Investments for account of policyholders ^1^ 125,172 114,030 941 240,142 118,057 104,635 1,012 223,705
Derivatives 157 11,295 5 11,456 34 13,930 22 13,986
Total Fairvalue through profit or loss **** 125,535 **** 128,442 **** 5,094 **** 259,070 **** 118,356 **** 124,613 **** 4,779 **** 247,748
Totalfinancial assets at fair value **** 152,272 **** 201,977 **** 6,397 **** 360,646 **** 147,578 **** 193,750 **** 6,000 **** 347,327
Financial liabilities carried at fairvalue
Investment contracts for account of policyholders ^2^ - 67,175 1 67,176 - 59,637 (12) 59,625
Derivatives 45 10,261 3,607 13,913 61 9,654 4,902 14,617
Totalfinancial liabilities at fair value **** 45 **** 77,436 **** 3,608 **** 81,089 **** 61 **** 69,291 **** 4,890 **** 74,242

^1^The investments for account of policyholders included in the table above represents only those 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.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Significant transfers between Level I, Level II and Level III

The table below shows transfers between Level I and Level II for financial assets and financial liabilities recorded at fair value on a recurring basis.

Fair value transfers
EUR millions September 30, 2021 December 31, 2020
Transfers<br>Level I to<br>Level II Transfers Level<br>II to Level I Transfers<br>Level I to<br>Level II Transfers Level<br>II to Level I
Financial assets carried at fairvalue<br>Available-for-sale investments
Debt<br>securities 44 19 - 46
Total **** 44 **** 19 **** - **** 46
Fair value through profit or loss
Shares - - - -
Total **** - **** - **** - **** -
Total financialassets at fair value **** 44 **** 19 **** - **** 46

Transfers are identified based on transaction volume and frequency, which are indicative of an active market.

Movements in Level III financial instruments measured at fair value

The following table summarizes the change of all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (‘Level III’), including realized and unrealized gains (losses) of all assets and liabilities and unrealized gains (losses) of all assets and liabilities still held at the end of the respective period.

Roll forward of Level III financial instruments ****
EUR millions January 1,<br>2021 Acquisitions<br>through<br>business<br>combinations Total gains /<br>losses in<br>income<br>statement ^1^ Total gains /<br>losses in OCI ^2^ Purchases Sales Settlements Net exchange<br>differences Transfers from<br>Level I and<br>Level II Transfers to<br>Level I and<br>Level II September 30,<br>2021 Total unrealized gains and<br>losses for the period<br>recorded in the P&L <br>for<br>instruments held at<br>September 30, 2021 ^3^
Financial assets carried at fair valueavailable-for-sale investments
Shares 173 - 6 (2 ) 39 (36 ) - 8 - - 187 -
Debt securities 467 - (2 ) 11 159 (21 ) (40 ) 16 192 (249 ) 534 -
Other investments at fair value 581 - (89 ) 8 68 (13 ) (4 ) 31 - - 582 -
**** 1,221 **** **** - **** (85 ) **** 17 **** **** 266 **** **** (71 ) **** (45 ) **** 56 **** 192 **** (249 ) **** 1,303 **** - ****
Fair value through profit or loss
Shares 1,329 - 103 - 32 (200 ) 1 1 - - 1,265 99
Debt securities 242 - - - 108 (239 ) - - - - 110 1
Other investments at fair value 2,173 - 600 - 340 (473 ) - 132 - - 2,772 1
Investments for account of policyholders 1,012 - 139 - 88 (306 ) - 14 - (7 ) 941 (59 )
Derivatives 22 - (17 ) - - - - - - - 5 (10 )
**** 4,779 **** **** - **** 824 **** **** - **** **** 569 **** **** (1,218 ) **** - **** **** 147 **** - **** (7 ) **** 5,094 **** 33 ****
Total assets atfair value **** 6,000 **** **** - **** 739 **** **** 17 **** **** 835 **** **** (1,288 ) **** (45 ) **** 203 **** 192 **** (256 ) **** 6,397 **** 33 ****
Financial liabilities carried at fairvalue
Investment contracts for account of<br>policyholders (12 ) - (1 ) - (195 ) 207 - 1 - - 1 1
Derivatives 4,902 - (1,413 ) - - (11 ) - 129 - - 3,607 443
**** 4,890 **** **** - **** (1,414 ) **** - **** **** (195 ) **** 197 **** **** - **** **** 131 **** - **** - **** **** 3,608 **** 444 ****
EUR millions January 1,<br>2020 Acquisitions<br>through<br>business<br>combinations Total gains /<br>losses in<br>income<br>statement ^1^ Total gains /<br>losses in OCI ^2^ Purchases Sales Settlements Net exchange<br>differences Transfers from<br>Level I and<br>Level II Transfers to<br>Level I and<br>Level II December 31,<br>2020 Total unrealized gains and<br>losses for the period<br>recorded in the P&L <br>for<br>instruments held at<br>December 31, 2020 ³
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Financial assets carried at fair valueavailable-for-sale investments
Shares 157 - (27 ) 24 49 (15 ) (1 ) (12 ) - (2 ) 173 -
Debt securities 1,074 - 3 (19 ) 155 (11 ) (34 ) (32 ) 26 (695 ) 467 -
Other investments at fair value 482 - (140 ) 28 302 (19 ) (22 ) (50 ) - - 581 -
**** 1,712 **** - **** (163 ) **** 34 **** **** 505 **** **** (45 ) **** (56 ) **** (94 ) **** 26 **** (697 ) **** 1,221 **** **** - ****
Fair value through profit or loss
Shares 1,401 - (132 ) - 160 (97 ) - (3 ) - - 1,329 (98 )
Debt securities 4 - - - 276 (37 ) - - - - 242 -
Other investments at fair value 2,049 - 122 - 432 (250 ) - (184 ) 16 (13 ) 2,173 (1 )
Investments for account of policyholders 1,805 - 3 - (168 ) (607 ) - (20 ) - - 1,012 37
Derivatives 56 - (33 ) - - - - - - - 22 (32 )
**** 5,314 **** - **** (40 ) **** - **** **** 700 **** **** (991 ) **** - **** **** (207 ) **** 16 **** (13 ) **** 4,779 **** **** (93 )
Total assets atfair value **** 7,026 **** - **** (203 ) **** 33 **** **** 1,205 **** **** (1,037 ) **** (57 ) **** (301 ) **** 42 **** (710 ) **** 6,000 **** **** (93 )
Financial liabilities carried at fairvalue
Investment contracts for account of<br>policyholders 197 - 9 - (200 ) (16 ) - (3 ) - - (12 ) 7
Derivatives 3,081 - 2,073 (9 ) - (15 ) - (228 ) - - 4,902 314
**** 3,278 **** - **** 2,082 **** **** (9 ) **** (200 ) **** (31 ) **** - **** **** (231 ) **** - **** - **** **** 4,890 **** **** 321 ****

^1^ Includes impairments and movements related to fair value hedges. Gains and losses are recorded in the line item results from financial transactions of the income statement.

^2^ Total gains and losses are recorded in line items gains/ (losses) on revaluation of available-for-sale investments and (gains)/ losses transferred to the income statement on disposal and impairment of available-for-sale investment of the statement of other comprehensive income.

^3^ Total gains / (losses) for the period during which the financial instrument was in Level III.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Fair value information about financial instruments not measured at fair value

The following table presents the carrying values and estimated fair values of financial assets and liabilities, excluding financial instruments which are carried at fair value on a recurring basis.

Fair valueinformation about financial instruments not measured at fair value
Carrying<br>amount Total estimated<br>fair value Carrying<br>amount Total estimated<br>fair value
EUR millions September 30, 2021 December 31, 2020
Assets
Mortgage loans - held at amortized cost 40,578 44,733 39,298 43,258
Private loans - held at amortized cost 4,435 5,100 4,358 5,280
Other loans - held<br>at amortized cost 1,958 1,958 1,917 1,917
Liabilities
Subordinated borrowings - held at amortized<br>cost 2,165 2,426 2,085 2,351
Trust pass-through securities - held at amortized<br>cost 126 139 126 142
Borrowings – held at amortized cost 9,464 9,841 8,524 9,165
Investment contracts<br>- held at amortized cost 21,557 20,913 20,889 20,382

Financial instruments for which carrying value approximates fair value

Certain financial instruments that are not carried at fair value are carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and cash equivalents, short-term receivables and accrued interest receivable, short-term liabilities, and accrued liabilities. These instruments are not included in the table above.

  1. Share capital
millions December 31, 2020
Share capital - par value 321 320
Share premium 7,033 7,160
Total share capital **** 7,354 **** **** 7,480 ****
Share capital - par value
Balance at January 1 320 323
Dividend 1 -
Shares withdrawn - (3 )
Balance **** 321 **** **** 320 ****
Share premium
Balance at January 1 7,160 7,213
Share dividend (127 ) (54 )
Balance **** 7,033 **** **** 7,160 ****
3Q YTD YTD
millions 2020 2021 2020
Earnings per share ( per share)
Basic earnings per common share (0.04 ) (0.20 ) 0.54 (0.12 )
Basic earnings per common share B - (0.01 ) 0.01 -
Diluted earnings per common share (0.04 ) (0.20 ) 0.54 (0.12 )
Diluted earnings<br>per common share B - (0.01 ) 0.01 -
Earnings per share calculation
Net result attributable to owners of Aegon<br>N.V. (79 ) (419 ) 1,147 (217 )
Coupons on other equity instruments (2 ) 5 (26 ) (24 )
Earnings<br>attributable to common shares and common shares B (81 ) (414 ) 1,121 (241 )
Earnings attributable to common<br>shareholders (81 ) (411 ) 1,114 (239 )
Earnings attributable to common shareholders<br>B (1 ) (3 ) 8 (2 )
Weighted average number of common shares<br>outstanding (in millions) 2,046 2,047 2,045 2,042
Weighted average<br>number of common shares B outstanding (in millions) 561 562 560 561

All values are in Euros.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Final dividend 2020

It was decided at the Annual General Meeting of Shareholders on June 3, 2021 to pay a final dividend for 2020 of EUR 0.06 per common share and EUR 0.0015 per common share B. After taking into account the interim dividend of EUR 0.06 per common share and EUR 0.0015 per common share B, this resulted in a total 2020 dividend of EUR 0.12 per common share and EUR 0.0030 per common share B.

The final dividend for 2020 was paid in cash or stock at the election of the shareholder. The value of the dividend in common shares was approximately equal to the cash dividend. Those who elected to receive a stock dividend received one Aegon common share for every 59 common shares held. The stock fraction was based on Aegon’s average share price as quoted on Euronext Amsterdam, using the high and low of each of the five trading days from June 24 up to and including June 30, 2021. The average price calculated on this basis amounted to EUR 3.52. The dividend was paid as of July 7, 2021.

2021 interim dividend

Aegon paid an interim dividend for 2021 of EUR 0.08 per common share. The interim dividend for 2021 was paid in cash or stock at the election of the shareholder. The value of the dividend in common shares was approximately equal to the cash dividend. Those who elected to receive a stock dividend received one Aegon common share for every 52 common shares held. The stock fraction was based on the average share price on Euronext Amsterdam, using the high and low of each of the five trading days from September 6 through September 10, 2021. The average price calculated on this basis amounted to EUR 4.15. The dividend was paid as of September 17, 2021.

Share buyback

During 3Q 2021, Aegon completed the share buyback program to neutralize the dilutive effect of the 2020 final dividend paid in shares and certain share-based variable compensation plans for senior management. The repurchased shares will be held as treasury shares and will either be used to cover future dividends to be paid in shares, or will be allocated to the participants of share-based variable compensation plans. Between July 8, 2021 and August 20, 2021 a total of 35,933,035 common shares were repurchased, at an average price of EUR 3.7013 per share.

On September 17, 2021, Aegon announced that it will repurchase common shares for an amount of EUR 96 million to neutralize the dilutive effect of its 2021 interim dividend paid in shares. These shares will be held as treasury shares and will be used to pay future dividends in shares. Shareholders were given the opportunity to choose between receiving the 2021 interim dividend of EUR 0.08 per common share in cash or in shares. 58% of shareholders elected to receive the interim dividend in shares. The repurchase will commence on October 1, 2021 and was completed before October 27, 2021. Between October 1, 2021 and October 26, 2021 a total of 21,531,927 common shares were repurchased, at an average price of EUR 4.46 per share.

  1. Other equity instruments

With effect on September 15, 2021, Aegon has exercised its right to redeem USD 250 million floating rate perpetual capital securities with a minimum coupon of 4% issued in 2005. The securities had no stated maturity, however Aegon had the right to call the securities for redemption.

  1. Borrowings
EUR millions September 30, 2021 December 31, 2020
Capital funding 1,274 1,241
Operational funding 8,191 7,283
Totalborrowings 9,464 8,524

During 3Q 2021, the operational funding increased by EUR 0.9 billion due to an increase in Federal Home Loan Bank advances of EUR

0.5 billion and an increase of mortgage loan funding of EUR 0.4 billion.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

  1. Financial risks

There have been no significant changes in sensitivities for equity market risk, bond credit spreads and liquidity premium per December 31, 2020 as reported in Aegon’s 2020 Integrated Annual Report. Aegon’s sensitivity to interest rate risk has changed per September 30, 2021. This is the net result of the effect of the implementation of an interest rate macro hedge in the United States and the effect from the improvement of the LAT deficit in the Netherlands.

The table below shows the updated sensitivity per September 30, 2021 of the effect of a parallel shift in the yield curves on net result and shareholders’ equity.

EUR millions September 30, 2021 December 31, 2020
Estimated<br>approximate<br>effects on net<br>result Estimated<br>approximate effects on shareholders’ equity Estimated<br>approximate<br>effects on net<br>result Estimated approximate effects on shareholders’ equity
Parallel movements of yieldcurve
Immediate movements of yield curve, but notpermanently
Shift up 100 basis points (366 ) (4,112) 187 (2,316)
Shift down<br>100 basis points 243 3,332 (462 ) 2,064
  1. Capital management and solvency

As at September 30, 2021, Aegon’s estimated capital position was:

Solvency II key figures
December 31, 2020
millions
Group Own Funds 18,582
Group SCR 9,473
Group<br>Solvency II ratio 196%

All values are in Euros.

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

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

Available Own Funds
December 31, 2020
millions
Tier 1 - unrestricted 12,971
Tier 1 - restricted 2,571
Tier 2 2,340
Tier<br>3 700
Total<br>Available Own Funds 18,582

All values are in Euros.

The table below provides the reconciliation from shareholders’ equity to Solvency II Own Funds:

Reconciliation Shareholders’ Equity - Own Funds
December 31, 2020
millions
IFRS Shareholders’ Equity 22,815
IFRS<br>adjustments for Other Equity instruments and non controlling interests 2,644
IFRS Group Equity 25,459
Solvency II revaluations and<br>reclassifications ) (9,418)
Transferability restrictions 1 ) (1,766)
Excess of Assets over Liabilities 14,274
Availability adjustments 4,416
Fungibility<br>adjustments ) (108)
Available<br>Own Funds 18,582

All values are in Euros.

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

The Solvency II revaluations and reclassifications mainly stem from the difference in valuation and presentation between IFRS-EU and Solvency II frameworks.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

  1. Commitments and contingencies

Several US insurers, including Aegon subsidiaries, have been named in class actions as well as individual litigation relating to increases in monthly deduction rates (‘’MDR’’) on universal life products. Plaintiffs generally allege that the increases were made to recoup past losses rather than to cover the future costs of providing insurance coverage. Aegon’s subsidiary in the US has agreed to settle two such class actions that had been venued in the US District Court for the Central District of California. The settlement in the first case, approved in January 2019, arose from increases implemented in 2015-2016. Over 99% of affected policyholders participated in that settlement. While less than 1% of policyholders opted out of the settlement, they represented approximately 43% of the value of the settlement fund. In 2021, settlements have been reached with some of these opt out parties. In the second case, Aegon’s subsidiary agreed to settle a class action lawsuit arising out of MDR increases in 2017 and 2018. The court approved that settlement on September 16, 2020. Opt-outs in this case represent less than 7% of the value of the settlement fund. On October 15, 2020, two opt-out policyholders whose objections to the settlement were overruled by the trial court filed an appeal, which delayed implementation of the settlement. Aegon’s subsidiary expects settlement implementation to begin shortly. The remaining opt-out cases and disputes are ongoing, and Aegon continues to hold a provision for the remaining opt-outs from the settlements that were approved by the court in 2019 and 2020. If this provision for these cases proves to be insufficient, then these cases could have an adverse effect on Aegon’s business, results of operations, and financial position.

20. Acquisitions/Divestments

On February 28, 2021, Aegon completed the divestment of Stonebridge, a UK-based provider of accident insurance products to Global Premium Holdings group, part of Embignell group. Under the terms of the agreement, Aegon sold Stonebridge for a consideration of approximately GBP 60 million, consisting of the purchase price and dividends related to the transaction. This excludes a contingent consideration of up to GBP 10 million. The transaction had no material impact on Aegon’s capital position and results.

On November 29, 2020, Aegon agreed to sell its insurance, pension, and asset management businesses in Hungary, Poland, Romania, and Turkey to Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) for EUR 830 million. The European Commission granted competition law clearance for the acquisition on August 12, 2021. However, the decision by the Hungarian Ministry of the Interior dated April 6, 2021 to block VIG’s acquisition of Aegon’s Hungarian subsidiaries remains in place. On September 20, 2021, the Budapest Metropolitan Court rejected VIG’s and Aegon’s joint appeal challenging this decision. Subsequently, VIG and Aegon requested the Hungarian Supreme Court to review the ruling of the Budapest Metropolitan Court on October 19, 2021. Next to that, the European Commission announced on October 29, 2021 to open an investigation to assess whether the decision by Hungary to veto the acquisition of Aegon’s Hungarian subsidiaries by VIG constitutes a breach of the European Union Merger Regulation. Irrespective of these developments, VIG is continuing its constructive dialogue with the Hungarian Ministry of Finance to clarify possibilities for a positive conclusion of the acquisition.

  1. Post reporting date events

On October 27, 2021, Aegon announced that it completed the share buyback program to neutralize the dilutive effect of the 2021 interim dividend paid in shares, for more details refer to note 14 Share Capital.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Disclaimers

Cautionary note regarding non-IFRS-EU measures

This document includes the following non-IFRS-EU financial measures: operating result, income tax and result before tax. These non-IFRS-EU measures are calculated by consolidating on a proportionate basis Aegon’s joint ventures and associated companies. The reconciliation of these measures to the most comparable IFRS-EU measure is provided in note 3 ‘Segment information’ of Aegon’s Condensed Consolidated Interim Financial Statements. Aegon believes that these non-IFRS-EU measures, together with the IFRS-EU information, provide meaningful supplemental information about the operating results of Aegon’s business including insight into the financial measures that senior management uses in managing the business.

Forward-looking statements

The statements contained in this document that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: aim, believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, goal, should, would, could, is confident, will, and similar expressions as they relate to Aegon. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Aegon undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties. Such risks and uncertainties include but are not limited to the following:

¨ Changes in general economic and/or governmental conditions, particularly in the United States, the Netherlands and the<br>United Kingdom;
¨ Changes in the performance of financial markets, including emerging markets, such as with regard to:<br>
--- ---
- The frequency and severity of defaults by issuers in Aegon’s fixed income investment portfolios;
--- ---
- The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of<br>equity and debt securities Aegon holds; and
--- ---
- The effects of declining creditworthiness of certain public sector securities and the resulting decline in the value of government<br>exposure that Aegon holds;
--- ---
¨ Changes in the performance of Aegon’s investment portfolio and decline in ratings of Aegon’s counterparties;<br>
--- ---
¨ Lowering of one or more of Aegon’s debt ratings issued by recognized rating organizations and the adverse impact<br>such action may have on Aegon’s ability to raise capital and on its liquidity and financial condition;
--- ---
¨ Lowering of one or more of insurer financial strength ratings of Aegon’s insurance subsidiaries and the adverse<br>impact such action may have on the written premium, policy retention, profitability and liquidity of its insurance subsidiaries;
--- ---
¨ The effect of the European Union’s Solvency II requirements and other regulations in other jurisdictions affecting<br>the capital Aegon is required to maintain;
--- ---
¨ Changes affecting interest rate levels and continuing low or rapidly changing interest rate levels;<br>
--- ---
¨ Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates;
--- ---
¨ Changes in the availability of, and costs associated with, liquidity sources such as bank and capital markets funding,<br>as well as conditions in the credit markets in general such as changes in borrower and counterparty creditworthiness;
--- ---
¨ Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets;<br>
--- ---
¨ Catastrophic events, either manmade or by nature, including by way of example acts of God, acts of terrorism, acts of<br>war and pandemics, could result in material losses and significantly interrupt Aegon’s business;
--- ---
¨ The frequency and severity of insured loss events;
--- ---
¨ Changes affecting longevity, mortality, morbidity, persistence and other factors that may impact the profitability of<br>Aegon’s insurance products;
--- ---
¨ Aegon’s projected results are highly sensitive to complex mathematical models of financial markets, mortality,<br>longevity, and other dynamic systems subject to shocks and unpredictable volatility. Should assumptions to these models later prove incorrect, or should errors in those models escape the controls in place to detect them, future performance will vary<br>from projected results;
--- ---
¨ Reinsurers to whom Aegon has ceded significant underwriting risks may fail to meet their obligations;<br>
--- ---
¨ Changes in customer behavior and public opinion in general related to, among other things, the type of products Aegon<br>sells, including legal, regulatory or commercial necessity to meet changing customer expectations;
--- ---
¨ Customer responsiveness to both new products and distribution channels;
--- ---
¨ As Aegon’s operations support complex transactions and are highly dependent on the proper functioning of<br>information technology, operational risks such as system disruptions or failures, security or data privacy breaches, cyberattacks, human error, failure to safeguard personally identifiable information, changes in operational practices or inadequate<br>controls including with respect to third parties with which we do business may disrupt Aegon’s business, damage its reputation and adversely affect its results of operations, financial condition and cash flows;
--- ---
¨ The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including<br>Aegon’s ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions;
--- ---
¨ Aegon’s failure to achieve anticipated levels of earnings or operational efficiencies, as well as other management<br>initiatives related to cost savings, cash capital at Holding, gross financial leverage and free cash flow;
--- ---
¨ Changes in the policies of central banks and/or governments;
--- ---
¨ Litigation or regulatory action that could require Aegon to pay significant damages or change the way Aegon does<br>business;
--- ---
¨ Competitive, legal, regulatory, or tax changes that affect profitability, the distribution cost of or demand for<br>Aegon’s products;
--- ---
¨ Consequences of an actual or potential break-up of the European monetary union<br>in whole or in part, or the exit of the United Kingdom from the European Union and potential consequences if other European Union countries leave the European Union;
--- ---
¨ Changes in laws and regulations, particularly those affecting Aegon’s operations’ ability to hire and retain<br>key personnel, taxation of Aegon companies, the products Aegon sells, and the attractiveness of certain products to its consumers;
--- ---
¨ Regulatory changes relating to the pensions, investment, and insurance industries in the jurisdictions in which Aegon<br>operates;
--- ---
¨ Standard setting initiatives of supranational standard setting bodies such as the Financial Stability Board and the<br>International Association of Insurance Supervisors or changes to such standards that may have an impact on regional (such as EU), national or US federal or state level financial regulation or the application thereof to Aegon, including the<br>designation of Aegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII); and
--- ---
¨ Changes in accounting regulations and policies or a change by Aegon in applying such regulations and policies,<br>voluntarily or otherwise, which may affect Aegon’s reported results, shareholders’ equity or regulatory capital adequacy levels.
--- ---

This document contains information that qualifies, or may qualify, as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation (596/2014). Further details of potential risks and uncertainties affecting Aegon are described in its filings with the Netherlands Authority for the Financial Markets and the US Securities and Exchange Commission, including the Annual Report. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, Aegon expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Aegon’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

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Condensed consolidated interim financial statements for the periods ended September 30, 2021

Corporate and shareholder information

Headquarters

Aegon N.V.

P.O. Box 85

2501 CB The Hague

The Netherlands

  • 31 (0) 70 344 32 10

aegon.com

Group Corporate Communications & Investor Relations

Media relations

  • 31 (0) 70 344 8344

gcc@aegon.com

Investor relations

  • 31 (0) 70 344 83 05

or 877 548 96 68 - toll free, USA only

ir@aegon.com

Publication dates results

February 9, 2022 4Q 2021 Results
May 12, 2022 1Q 2022 Results

About Aegon

Aegon’s roots go back more than 175 years – to the first half of the nineteenth century. Since then, Aegon has grown into an international company, with businesses in the Americas, Europe, and Asia. Today, Aegon is one of the world’s leading financial services organizations, providing life insurance, pensions, and asset management. Aegon’s purpose is to help people achieve a lifetime of financial security. More information: aegon.com.

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