Aegon Ltd 6-K, filed Aug 13, 2020

Aegon Ltd. (AEG)

6-K 2020-08-13 For: 2020-06-30

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Added on April 07, 2026

About this 6-K

Aegon Ltd filed this 6-K on August 13, 2020.

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Index		Page Number

Item 1: Condensed consolidated interim financial statements

Condensed consolidated income statement		1

Condensed consolidated statement of comprehensive income		2

Condensed consolidated statement of financial position		3

Condensed consolidated statement of changes in equity		4

Condensed consolidated cash flow statement		5

Notes to the Condensed consolidated interim financial statements		6

Item 2: Operating and financial review and prospects		29


Condensed consolidated income statement
EUR millions	Notes	First half 2020	First half 2019 ¹

Premium income	4	8,744	9,276
Investment income	5	4,034	4,083
Fee and commission income		1,170	1,213
Other revenues		2	3
Total revenues		13,951	14,575
Income from reinsurance ceded		1,952	1,844
Results from financial transactions	6	(4,962)	23,837
Other income		55	78
Total income		10,996	40,333

Benefits and expenses	7	10,700	39,701
Impairment charges / (reversals)	8	246	153
Interest charges and related fees		233	243
Other charges	9	101	(4)
Total charges		11,280	40,094

Share in profit / (loss) of joint ventures		115	106
Share in profit / (loss) of associates		3	4
Income / (loss) before tax		(167)	349
Income tax (expense) / benefit	10	151	(49)
Net income / (loss)		(16)	300

Net income / (loss) attributable to:
Owners of Aegon N.V.		(17)	299
Non-controlling interests		1	-

Earnings per share (EUR per share)	14
Basic earnings per common share		(0.02)	0.12
Basic earnings per common share B		-	-
Diluted earnings per common share		(0.02)	0.12
Diluted earnings per common share B		-	-


Condensed consolidated statement of comprehensive income
EUR millions	First half 2020		First half 2019 ¹

Net income / (loss)		(16)	300

Other comprehensive income:
Items that will not be reclassified to profit or loss:
Changes in revaluation reserve real estate held for own use		(1)	(6)
Remeasurements of defined benefit plans		(48)	(418)
Income tax relating to items that will not be reclassified		8	82

Items that may be reclassified subsequently to profit or loss:
Gains / (losses) on revaluation of available-for-sale investments		1,468	2,596
Gains / (losses) transferred to the income statement on disposal and impairment of available-for-sale investments		110	(256)
Changes in cash flow hedging reserve		302	77
Movement in foreign currency translation and net foreign investment hedging reserve		(167)	39
Equity movements of joint ventures		8	7
Equity movements of associates		7	4
Disposal of group assets		(10)	(1)
Income tax relating to items that may be reclassified		(406)	(519)
Other		3	9
Total other comprehensive income / (loss) for the period		1,273	1,613
Total comprehensive income / (loss)		1,257	1,913

Total comprehensive income / (loss) attributable to:
Owners of Aegon N.V.		1,255	1,912
Non-controlling interests		2	-


Condensed consolidated statement of financial position
		Jun. 30, 2020		Dec. 31, 2019 ¹
EUR millions	Notes

Assets
Cash and cash equivalents			11,138	12,263
Investments	11		158,479	145,976
Investments for account of policyholders	12		212,926	226,374
Derivatives			17,663	11,157
Investments in joint ventures			1,989	1,983
Investments in associates			336	363
Reinsurance assets			20,455	20,253
Deferred expenses			10,298	10,806
Other assets and receivables			8,760	9,036
Intangible assets			1,504	1,559
Total assets			443,547	439,769

Equity and liabilities
Shareholders’ equity			23,089	21,842
Other equity instruments			2,557	2,571
Issued capital and reserves attributable to owners of Aegon N.V.			25,646	24,413
Non-controlling interests			22	20
Group equity			25,669	24,433

Subordinated borrowings			2,208	2,207
Trust pass-through securities			141	136
Insurance contracts	15		127,552	122,885
Insurance contracts for account of policyholders	16		128,999	135,710
Investment contracts			19,718	18,594
Investment contracts for account of policyholders	17		86,950	93,826
Derivatives			17,975	11,616
Borrowings	18		8,891	9,307
Other liabilities			25,445	21,056
Total liabilities			417,878	415,336
Total equity and liabilities			443,547	439,769


Condensed consolidated statement of changes in equity
EUR millions	Share capital ¹			Retained earnings			Revaluation reserves			Remeasurement of defined benefit plans			Other reserves			Other equity instruments			Issued capital and reserves ²			Non- controlling interests		Total

Six months ended June 30, 2020

At beginning of year		7,536			10,386			5,868			(2,397	)		456			2,571			24,421			20		24,441

Voluntary change in accounting policy ³		-			(12	)		5			-			(1	)		-			(8	)		-		(8)
Adjusted balance at beginning of year		7,536			10,374			5,873			(2,397	)		456			2,571			24,413			20		24,433
Net income / (loss) recognized in the income statement		-			(17	)		-			-			-			-			(17	)		1		(16	)

Other comprehensive income:
*Items that will not be reclassified to profit or loss:*
Changes in revaluation reserve real estate held for own use		-			-			(1	)		-			-			-			(1	)		-		(1	)
Remeasurements of defined benefit plans		-			-			-			(48	)		-			-			(48	)		-		(48	)
Income tax relating to items that will not be reclassified		-			-			-			8			-			-			8			-		8

*Items that may be reclassified subsequently to profit or loss:*
Gains / (losses) on revaluation of available-for-sale investments		-			-			1,468			-			-			-			1,468			-		1,468
Gains / (losses) transferred to income statement on disposal and impairment of available-for-sale investments		-			-			110			-			-			-			110			-		110
Changes in cash flow hedging reserve		-			-			302			-			-			-			302			-		302
Movement in foreign currency translation and net foreign investment hedging reserves		-			-			(49	)		19			(137	)		-			(167	)		-		(167	)
Equity movements of joint ventures		-			-			-			-			8			-			8			-		8
Equity movements of associates		-			-			-			-			7			-			7			-		7
Disposal of group assets		-			-			-			-			(10	)		-			(10	)		-		(10	)
Income tax relating to items that may be reclassified		-			-			(401	)		-			(4	)		-			(406	)		-		(406	)
Other		-			1			-			-			-			-			1			1		3
Total other comprehensive income		-			1			1,429			(22	)		(136	)		-			1,272			1		1,273

Total comprehensive income / (loss) for 2020		-			(16	)		1,429			(22	)		(136	)		-			1,255			2		1,257

Issuance and purchase of (treasury) shares		-			9			-			-			-			-			9			-		9
Coupons on perpetual securities		-			(28	)		-			-			-			-			(28	)		-		(28	)
Incentive plans		-			11			-			-			-			(14	)		(3	)		-		(3)
At end of period		7,536			10,351			7,302			(2,419	)		319			2,557			25,646			22		25,669

Six months ended June 30, 2019

At beginning of year		7,808			9,657			3,436			(1,850	)		149			3,320			22,520			22		22,542

Voluntary change in accounting policy ³		-			(9	)		(1	)		-			-			-			(10	)		-		(10)
Change in accounting policies relating to new effective standards		-			(44	)		-			-			-			-			(44	)		-		(44)

Adjusted balance at beginning of year		7,808			9,604			3,435			(1,850	)		149			3,320			22,465			22		22,487
Net income / (loss) recognized in the income statement		-			299			-			-			-			-			299			-		300

Other comprehensive income:
Items that will not be reclassified to profit or loss:
Changes in revaluation reserve real estate held for own use		-			14			(20	)		-			-			-			(6	)		-		(6	)
Remeasurements of defined benefit plans		-			-			-			(418	)		-			-			(418	)		-		(418	)
Income tax relating to items that will not be reclassified		-			-			1			80			-			-			82			-		82

Items that may be reclassified subsequently to profit or loss:
Gains / (losses) on revaluation of available-for-sale investments		-			-			2,596			-			-			-			2,596			-		2,596
Gains / (losses) transferred to income statement on disposal and impairment of available-for-sale investments		-			-			(256	)		-			-			-			(256	)		-		(256	)
Changes in cash flow hedging reserve		-			-			77			-			-			-			77			-		77
Movement in foreign currency translation and net foreign investment hedging reserves		-			-			(10	)		(2	)		51			-			39			-		39
Equity movements of joint ventures		-			-			-			-			7			-			7			-		7
Equity movements of associates		-			-			-			-			4			-			4			-		4
Disposal of group assets		-			-			-			-			(1	)		-			(1	)		-		(1	)
Income tax relating to items that may be reclassified		-			-			(514	)		-			(5	)		-			(519	)		-		(519	)
Other		-			9			-			-			-			-			9			-		9
Total other comprehensive income		-			24			1,873			(341	)		57			-			1,613			-		1,613

Total comprehensive income / (loss) for 2019		-			323			1,873			(341	)		57			-			1,912			-		1,913

Issuance and purchase of (treasury) shares		-			155			-			-			-			-			155			-		155
Other equity instruments redeemed		-			(16	)		-			-			-			(424	)		(440	)		-		(440	)
Dividends paid on common shares		(139	)		(170	)		-			-			-			-			(309	)		-		(309	)
Issuance of non-cumulative subordinated loans		-			(4	)		-			-			-			500			496			-		496
Coupons on non-cumulative subordinated notes		-			-			-			-			-			-			-			-		-
Coupons on perpetual securities		-			(48	)		-			-			-			-			(48	)		-		(48	)
Incentive plans		-			2			-			-			-			(13	)		(11	)		-		(11)
At end of period		7,669			9,846			5,308			(2,191	)		205			3,384			24,221			22		24,244


Condensed consolidated cash flow statement
EUR millions	First half 2020		First half 2019

Income / (loss) before tax		(167)		349

Results from financial transactions		5,222		(24,110)
Amortization and depreciation		268		491
Impairment losses		242		143
Income from joint ventures		(115)		(106)
Income from associates		(3)		(4)
Release of cash flow hedging reserve		(59)		(53)
Other		(81)		(13)
Adjustments of non-cash items		5,474		(23,652)

Insurance and investment liabilities		4,543		3,326
Insurance and investment liabilities for account of policyholders		(9,550)		18,656
Accrued expenses and other liabilities		43		103
Accrued income and prepayments		(794)		(394)
Changes in accruals		(5,758)		21,691

Purchase of investments (other than money market investments)		(22,569)		(18,686)
Purchase of derivatives		479		(467)
Disposal of investments (other than money market investments)		14,707		20,418
Disposal of derivatives		2,125		1,107
Net purchase of investments for account of policyholders		2,461		3,386
Net change in cash collateral		4,840		2,523
Net purchase of money market investments		(2,340)		(656)
Cash flow movements on operating items not reflected in income		(297)		7,625

Tax paid		(53)		(47)
Other		8		(4)
Net cash flows from operating activities		(793)		5,962

Purchase of individual intangible assets (other than VOBA and future servicing rights)		(17)		(16)
Purchase of equipment and real estate for own use		(27)		(45)
Acquisition of subsidiaries, net of cash		(14)		(1)
Acquisition joint ventures and associates		(20)		(51)
Disposal of individual intangible assets (other than VOBA and future servicing rights)		1		-
Disposal of equipment		1		39
Disposal of subsidiaries, net of cash		-		137
Disposal joint ventures and associates		157		1
Dividend received from joint ventures and associates		20		24
Net cash flows from investing activities		101		87

Issuance of perpetuals		-		496
Issuance of treasury shares		20		-
Proceeds from TRUPS¹, subordinated loans and borrowings		2,434		3,751
Repayment of perpetuals		-		(440)
Repayment of TRUPS¹, subordinated loans and borrowings		(2,791)		(6,357)
Dividends paid		-		(170)
Coupons on perpetual securities		(33)		(64)
Payment of principal portion of lease liability		(32)		(26)
Net cash flows from financing activities		(401)		(2,808)

Net increase / (decrease) in cash and cash equivalents ²		(1,093)		3,241

Net cash and cash equivalents at the beginning of the reporting period		12,263		8,744
Effects of changes in exchange rate		(32)		(1)
Net cash and cash equivalents at the end of the reporting period		11,138		11,984


	Shareholders’ equity						Net income
	per June 30						First half			First half
Amounts in EUR millions	2020			2019			2020			2019
In accordance with IFRS		23,089			20,837			(16	)		300
Adjustment of EU ‘IAS 39’ carve out		1,051			799			277			400
Tax effect of the adjustment		(226	)		(164	)		(59	)		(83	)
Effect of the adjustment after tax		826			635			218			317
In accordance with IFRS-EU		23,914			21,472			202			617


Impact of voluntary change in accounting policy on the condensed consolidated income statement
		First half 2019 (as previously reported)			Change in accounting policy related to Reinsurance Accounting			First half 2019 (restated)
Income from reinsurance ceded			1,815			28			1,844
Benefits and expenses			39,671			30			39,701
Income tax benefit/(expense)			(50	)		-			(49	)
Net income/(loss)			302			(2	)		300

Net income/(loss) attributable to:
- Owners of Aegon NV			301			(2	)		299
- Non-controlling interest			-			-			-

Earnings per share (EUR per share)	14
Basic earnings per common share			0.12			-			0.12
Basic earnings per common share B			-			-			-
Diluted earnings per common share			0.12			-			0.12
Diluted earnings per common share B			-			-			-

Earnings per common share calculation
Net income/(loss) attributable to owner			301			(2	)		299
Coupons on perpetual securities			(48	)		-			(48	)
Coupon on non-cumulative subordinated notes			-			-			-
Earnings attributable to common shares and common shares B			253			-			251

Earnings attributable to common shareholders			251			(2	)		250
Earnings attributable to common shareholders B			2			-			2

Weighted average number of common shares outstanding (in million)			2,036			-			2,036
Weighted average number of common shares B outstanding (in million)			572			-			572


Impact of voluntary change in accounting policy on the condensed consolidated statement of financial position
		Dec 31, 2019 (as previously reported) ¹		Change in accounting policy related to Reinsurance Accounting			Dec 31, 2019 (restated)

Assets
Reinsurance assets			20,835		(582	)		20,253
Deferred expenses			10,804		2			10,806
Other assets and receivables			9,035		1			9,036
Intangible assets			1,559		-			1,559
Equity and liabilities
Shareholders’ equity			21,850		(8	)		21,842
Insurance contracts	15		123,454		(569	)		122,885
Other liabilities			21,058		(2	)		21,056


Impact of voluntary change in accounting policy on the condensed consolidated statement of changes in equity
	June 30, 2019 (as previously reported)			Change in accounting policy related to Reinsurance Accounting			June 30, 2019 (restated)
Share capital		7,669			-			7,669
Retained earnings		9,857			(11	)		9,846
Revaluation reserves		5,305			3			5,308
Remeasurement of defined benefit plans		(2,191	)		-			(2,191	)
Other reserves		206			-			205
Shareholders’ equity		20,846			(8	)		20,837


			USD		GBP
June 30, 2020	1	EUR		1.1232		0.9090
December 31, 2019	1	EUR		1.1225		0.8473


			USD		GBP
Six months ended June 30, 2020	1	EUR		1.1017		0.8737
Six months ended June 30, 2019	1	EUR		1.1299		0.8730


EUR millions	Americas		The Netherlands		United Kingdom		International		Asset management		Holdings and other activities		Eliminations			Segment total		Joint ventures and associates eliminations			Consolidated
*Six months ended June 30, 2020*

Underlying earnings before tax geographically		264		321		81		75		71		(113)		1			700		10			710
Fair value items		(760)		1,102		89		(1)		(7)		(21)		-			403		(30)			372
Realized gains / (losses) on investments		5		2		-		8		1		-		-			16		(5)			11
Impairment charges		(134)		(66)		-		(5)		-		(4)		-			(209)		-			(209)
Impairment reversals		15		-		-		-		-		-		-			15		-			15
Other income / (charges)		(938)		(48)		(53)		25		-		(56)		-			(1,071)		1			(1,070)
Run-off businesses		4		-		-		-		-		-		-			4		-			4
Income / (loss) before tax		(1,545)		1,312		117		102		64		(193)		1			(143)		(24)			(167)
Income tax (expense) / benefit		380		(256)		(3)		(11)		(18)		34		-			126		24			151
Net income / (loss)		(1,165)		1,056		114		91		46		(159)		1			(16)		-			(16)
Inter-segment underlying earnings		(18)		(45)		(44)		(18)		92		35

Revenues
Life insurance gross premiums		3,617		978		2,735		611		-		4		(3)			7,942		(416)			7,526
Accident and health insurance		728		169		13		150		-		-		-			1,060		(37)			1,022
Property & casualty insurance		-		66		-		194		-		-		-			260		(65)			195
Total gross premiums		4,345		1,212		2,748		955		-		4		(3)			9,262		(518)			8,744
Investment income		1,562		1,063		1,259		187		3		129		(139)			4,063		(29)			4,034
Fee and commission income		796		125		98		26		336		-		(89)			1,291		(121)			1,170
Other revenues		4		-		-		1		1		2		-			8		(6)			2
Total revenues		6,707		2,400		4,105		1,168		340		135		(231	)		14,624		(673	)		13,951
Inter-segment revenues		-		9		-		-		89		133


EUR millions June 30, 2020	Americas		The Netherlands		United Kingdom		International		Asset Management		Holdings and other activities		Eliminations		Total
Investments
Shares		406		1,391		12		76		4		136		-		2,025
Debt securities		59,827		28,260		992		8,293		61		2		-		97,434
Loans		11,029		33,418		-		129		-		40		-		44,616
Other financial assets		10,086		83		1,007		117		92		27		-		11,412
Investments in real estate		593		2,381		-		18		-		-		-		2,992
Investments general account		81,941		65,532		2,011		8,632		157		204		-		158,479
Shares		-		7,707		14,705		155		-		-		(3)		22,564
Debt securities		1,390		11,603		7,635		160		-		-		-		20,788
Unconsolidated investment funds		102,231		665		56,450		606		-		-		-		159,953
Other financial assets		(555)		4,539		5,118		4		-		-		-		9,106
Investments in real estate		-		-		516		-		-		-		-		516
Investments for account of policyholders		103,066		24,514		84,424		925		-		-		(3)		212,926

Investments on balance sheet		185,007		90,047		86,435		9,557		157		204		(3)		371,405
Off balance sheet investments third parties		218,056		5,062		111,569		6,161		169,919		-		(94)		510,673
Total revenue generating investments		403,063		95,108		198,004		15,718		170,076		204		(97)		882,077
Investments
Available-for-sale		67,074		23,423		1,579		8,471		74		40		-		100,661
Loans		11,029		33,418		-		129		-		40		-		44,616
Financial assets at fair value through profit or loss		106,311		30,825		84,340		939		83		125		(3)		222,620
Investments in real estate		593		2,381		516		18		-		-		-		3,508
Total investments on balance sheet		185,007		90,047		86,435		9,557		157		204		(3)		371,405
Investments in joint ventures		-		1,199		-		607		183		-		-		1,989
Investments in associates		58		89		8		33		132		25		(10)		336
Other assets		39,443		24,139		4,018		2,754		344		35,804		(36,684)		69,818
Consolidated total assets		224,509		115,473		90,461		12,951		816		36,034		(36,697)		443,547


EUR millions December 31, 2019	Americas		The Netherlands		United Kingdom		International		Asset Management		Holdings and other activities		Eliminations		Total
Investments
Shares		499		1,443		17		84		5		173		-		2,221
Debt securities		54,970		22,773		1,055		7,962		93		1		-		86,853
Loans		10,922		33,460		-		160		-		48		-		44,591
Other financial assets		8,032		78		962		148		168		21		-		9,410
Investments in real estate		653		2,229		-		19		-		-		-		2,901
Investments general account		75,076		59,983		2,034		8,373		266		244		-		145,976
Shares		-		8,490		16,583		218		-		-		(4)		25,288
Debt securities		877		11,652		8,043		173		-		-		-		20,744
Unconsolidated investment funds		106,926		695		61,738		680		-		-		-		170,039
Other financial assets		161		4,653		4,898		4		-		-		-		9,716
Investments in real estate		-		-		586		-		-		-		-		586
Investments for account of policyholders		107,963		25,491		91,848		1,076		-		-		(4)		226,374

Investments on balance sheet		183,039		85,474		93,882		9,449		266		244		(4)		372,350
Off balance sheet investments third parties		220,039		4,802		123,904		6,463		170,158		-		(818)		524,547
Total revenue generating investments		403,078		90,276		217,786		15,911		170,424		244		(822)		896,897
Investments
Available-for-sale		59,899		19,591		1,556		8,172		153		32		-		89,404
Loans		10,922		33,460		-		160		-		48		-		44,591
Financial assets at fair value through profit or loss		111,565		30,193		91,740		1,098		113		164		(4)		234,867
Investments in real estate		653		2,229		586		19		-		-		-		3,487
Total investments on balance sheet		183,039		85,474		93,882		9,449		266		244		(4)		372,350
Investments in joint ventures		-		1,159		-		668		153		3		-		1,983
Investments in associates		79		106		9		28		129		21		(10)		363
Other assets		36,351		21,983		3,764		2,920		292		32,603		(32,839)		65,073
Consolidated total assets		219,469		108,722		97,655		13,065		840		32,871		(32,853)		439,769


Unaudited


Unaudited


Unaudited				Page 1


Unaudited				Page 2




EUR millions	First half 2020		First half 2019

Premium income
Life insurance		7,526		8,084
Non-life insurance		1,217		1,192
Total premium income		8,744		9,276
Accident and health insurance		1,022		996
Property & casualty insurance		195		196
Non-life Insurance premium income		1,217		1,192

Premiums paid to reinsurers ¹
Life insurance		1,114		1,163
Non-life insurance		86		73
Total premiums paid to reinsurers		1,200		1,236
Accident and health insurance		73		67
Property & casualty insurance		14		6
Non-life Insurance paid to reinsurers		86		73



EUR millions	Jun. 30, 2020	Dec. 31, 2019

Available-for-sale (AFS)	100,661		89,404
Loans	44,616		44,591
Financial assets at fair value through profit or loss (FVTPL)	10,210		9,080
Financial assets, for general account, excluding derivatives	155,487		143,075
Investments in real estate	2,992		2,901
Total investments for general account, excluding derivatives	158,479		145,976


Financial assets, for general account, excluding derivatives
EUR millions	AFS		FVTPL		Loans		Total

Shares		331		1,693		-		2,025
Debt securities		91,827		5,607		-		97,434
Money market and other short-term investments		7,463		110		-		7,573
Mortgages loans		-		-		38,236		38,236
Private loans		-		-		4,257		4,257
Deposits with financial institutions		-		-		91		91
Policy loans		-		-		1,980		1,980
Other		1,040		2,799		51		3,890
June 30, 2020		100,661		10,210		44,616		155,487


	AFS		FVTPL		Loans		Total

Shares		409		1,813		-		2,221
Debt securities		82,918		3,934		-		86,853
Money market and other short-term investments		5,169		158		-		5,327
Mortgages loans		-		-		37,750		37,750
Private loans		-		-		4,487		4,487
Deposits with financial institutions		-		-		141		141
Policy loans		-		-		2,024		2,024
Other		908		3,175		188		4,272
December 31, 2019		89,404		9,080		44,591		143,075


Fair value hierarchy

EUR millions	As at June 30, 2020								As at December 31, 2019
	Level I		Level II		Level III		Total		Level I		Level II		Level III		Total
Financial assets carried at fair value
Available-for-sale investments
Shares		86		84		161		331		92		160		157		409
Debt securities		27,924		63,424		479		91,827		25,528		56,317		1,074		82,918
Money markets and other short-term instruments		1,720		5,743		-		7,463		1,255		3,914		-		5,169
Other investments at fair value		-		518		522		1,040		-		426		482		908
Total Available-for-sale investments		29,730		69,768		1,162		100,661		26,875		60,817		1,712		89,404

Fair value through profit or loss
Shares		66		238		1,389		1,693		106		306		1,401		1,813
Debt securities		211		5,392		4		5,607		204		3,727		4		3,934
Money markets and other short-term instruments		17		94		-		110		19		139		-		158
Other investments at fair value		1		785		2,013		2,799		1		1,125		2,049		3,175
Investments for account of policyholders ¹		113,220		97,517		1,673		212,410		120,271		103,712		1,805		225,788
Derivatives		54		17,515		94		17,663		96		11,006		56		11,157
Total Fair value through profit or loss		113,569		121,541		5,173		240,283		120,696		120,014		5,314		246,024
Total financial assets at fair value		143,299		191,310		6,336		340,944		147,571		180,831		7,026		335,429

Financial liabilities carried at fair value
Investment contracts for account of policyholders ²		-		56,414		165		56,579		-		59,759		197		59,956
Borrowings ³		-		456		-		456		-		461		-		461
Derivatives		142		11,197		6,636		17,975		59		8,476		3,081		11,616
Total financial liabilities at fair value		142		68,066		6,801		75,010		59		68,696		3,278		72,033


Roll forward of Level III financial instruments
EUR millions	January 1, 2020		Acquisitions through business combinations		Total gains / losses in income statement¹			Total gains / losses in OCI²			Purchases		Sales			Settlements			Net exchange differences			Reclassification			Transfers from Level I and Level II		Transfers to Level I and Level II			June 30, 2020		Total unrealized gains and losses for the period recorded in the P&L for instruments held at June 30, 2020 ³
Financial assets carried at fair value available-for-sale investments
Shares		157		-		-			5			4		(2	)		-			-			-			-		(2	)		161	-
Debt securities		1,074		-		2			(31	)		67		(6	)		(23	)		11			-			20		(635	)		479	-
Money markets and other short-term instruments		-		-		-			-			-		-			-			-			-			-		-			-	-
Other investments at fair value		482		-		(72	)		9			122		(3	)		(15	)		(1	)		-			-		-			522	-
		1,712		-		(70)			(16)			193		(11)			(38)			10			-			20		(637)			1,162	-
Fair value through profit or loss
Shares		1,401		-		(62	)		-			82		(33	)		-			-			-			-		-			1,389	(60)
Debt securities		4		-		-			-			34		(33	)		-			-			-			-		-			4	-
Other investments at fair value		2,049		-		(121	)		-			198		(100	)		-			(1	)		-			1		(13	)		2,013	(109)
Investments for account of policyholders		1,805		-		(80	)		(1	)		221		(246	)		-			(19	)		-			-		(7	)		1,673	(11)
Derivatives		56		-		38			-			-		-			-			-			-			-		-			94	38
		5,314		-		(226)			(1)			536		(411)			-			(20)			-			1		(21)			5,173	(142)
Financial liabilities carried at fair value
Investment contracts for account of policyholders		197		-		(12	)		-			1		(20	)		-			-			-			-		-			165	2
Derivatives		3,081		-		3,631			(9	)		2		(7	)		-			(61	)		-			-		-			6,636	463
		3,278		-		3,618			(9)			3		(28)			-			(61)			-			-		-			6,801	465

EUR millions	January 1, 2019		Acquisitions through business combinations		Total gains / losses in income statement ¹			Total gains / losses in OCI ²			Purchases		Sales			Settlements			Net exchange differences			Reclassification			Transfers from Level I and Level II		Transfers to Level I and Level II			December 31, 2019		Total unrealized gains and losses for the period recorded in the P&L for instruments held at December 31, 2019 ³
Financial assets carried at fair value available-for-sale investments
Shares		241		-		-			(5	)		22		(100	)		-			4			2			-		(7	)		157	-
Debt securities		1,242		-		3			21			319		(317	)		(68	)		19			(2	)		52		(195	)		1,074	-
Money markets and other short-term instruments		-		-		-			-			1,061		(855	)		(103	)		-			-			126		(229	)		-	-
Other investments at fair value		493		-		(100	)		(56	)		183		(25	)		(23	)		9			-			-		-			482	-
		1,976		-		(97)			(40)			1,584		(1,297)			(194)			32			1			178		(431)			1,712	-
Fair value through profit or loss
Shares		1,226		-		72			-			368		(266	)		-			1			-			-		-			1,401	62
Debt securities		17		-		(1	)		-			1		(12	)		(1	)		-			(1	)		-		-			4	-
Other investments at fair value		1,376		-		34			-			884		(268	)		-			23			-			85		(86	)		2,049	36
Investments for account of policyholders		1,871		-		45			-			435		(567	)		-			20			-			-		-			1,805	86
Derivatives		35		-		19			-			35		(33	)		-			-			-			-		-			56	20
		4,525		-		170			-			1,723		(1,146)			(1)			44			(1)			85		(86)			5,314	204
Financial liabilities carried at fair value
Investment contracts for account of policyholders		206		-		9			-			4		(23	)		-			1			-			-		-			197	(10)
Derivatives		2,489		-		597			4			-		(22	)		-			13			-			-		-			3,081	84
		2,695		-		605			4			4		(46)			-			15			-			-		-			3,278	75


Fair value information about financial instruments not measured at fair value
EUR millions	Carrying amount June 30, 2020		Total estimated fair value June 30, 2020		Carrying amount December 31, 2019		Total estimated fair value December 31, 2019
Assets
Mortgage loans - held at amortized cost		38,236		42,961		37,750		42,567
Private loans - held at amortized cost		4,257		5,008		4,487		5,159
Other loans - held at amortized cost		2,122		2,122		2,353		2,353

Liabilities
Subordinated borrowings - held at amortized cost		2,208		2,256		2,207		2,416
Trust pass-through securities - held at amortized cost		141		148		136		144
Borrowings – held at amortized cost		8,435		8,462		8,845		9,322
Investment contracts - held at amortized cost		19,535		20,127		18,382		18,964


	June 30, 2020 Available own funds	December 31, 2019 Available own funds

Tier 1 - unrestricted	11,588	12,724
Tier 1 - restricted	2,622	2,614
Tier 2	2,505	2,370
Tier 3	786	762
Total available own funds	17,501	18,470


IFRS equity compared to Solvency II own funds
EUR millions	June 30, 2020		December 31, 2019

Shareholders’ Equity		23,089		21,842
IFRS adjustments for Other Equity Instruments and non controlling interests		2,580		2,591
Group Equity		25,669		24,433
Solvency II revaluations and reclassifications		(10,037)		(7,599)
Transferability restrictions ¹		(1,949)		(1,973)
Excess of Assets over Liabilities		13,683		14,861
Availability adjustments		4,660		4,446
Fungibility adjustments ²		(842)		(838)
Available own funds		17,501		18,470


EUR millions	DPAC			Deferred costs of reinsurance			Deferred transaction costs

Balance at January 1, 2020		9,974			389			442
Costs deferred during the year		388			-			11
Amortizations through income statement		(461	)		(9	)		(11	)
Shadow accounting adjustments		(355	)		(12	)		-
Net exchange differences		(60	)		-			(3	)
Other		(3	)		6			-
At June 30, 2020		9,483			374			440



Liabilities for financial guarantees for minimum benefits

EUR millions	United States ¹			The Netherlands ²		Total ³
At January 1, 2020		1,296			1,735		3,031
Incurred guarantee benefits ⁴		3,055			453		3,509
Paid guarantee benefits		(1	)		-		(1	)
Net exchange differences		(59	)		-		(59	)
At June 30, 2020		4,291			2,188		6,479
Balance at June 30, 2020
Account value ⁵		32,798			8,678		41,476
Net amount at risk ⁶		1,757			2,669		4,426

At January 1, 2019		766			1,678		2,445
Incurred guarantee benefits ⁴		518			57		575
Paid guarantee benefits		(1	)		-		(1	)
Net exchange differences		13			-		13
At December 31, 2019		1,296			1,735		3,031
Balance at December 31, 2019
Account value ⁵		34,503			8,626		43,130
Net amount at risk ⁶		236			2,002		2,239



Liabilities for guarantees Americas
EUR millions	GMDB¹			GMIB²			Total⁴

At January 1, 2020		448			686			1,133
Incurred guarantee benefits⁵		194			242			436
Paid guarantee benefits		(38	)		(20	)		(58	)
Net exchange differences		(3	)		(5	)		(8	)
At June 30, 2020		601			902			1,503

	GMDB¹^,3			GMIB ^2,3
Balance at June 30, 2020
Account value⁶		51,794			5,040
Net amount at risk⁷		1,609			809
Average attained age of contractholders		71			72

At January 1, 2019		519			906			1,425
Incurred guarantee benefits⁵		(27	)		(210	)		(238	)
Paid guarantee benefits		(53	)		(27	)		(81	)
Net exchange differences		10			17			27
At December 31, 2019		448			686			1,133

	GMDB ^1,3			GMIB ^2,3
Balance at December 31, 2019
Account value⁶		54,411			5,331
Net amount at risk⁷		1,268			688
Average attained age of contractholders		70			71


Liabilities for guarantees The Netherlands
EUR millions	GMI^1,2

At January 1, 2020		6,422
Incurred guarantee benefits³		1,438
At June 30, 2020		7,860

Balance at June 30, 2020
Account value⁴		19,927
Net amount at risk⁵		7,848

At January 1, 2019		5,063
Incurred guarantee benefits ³		1,358
At December 31, 2019		6,422

Balance at December 31, 2019
Account value⁴		19,985
Net amount at risk⁵		6,335



EUR millions	Amortized cost		Unrealized gains		Unrealized losses			Total fair value		Fair value of instruments with unrealized gains		Fair value of instruments with unrealized losses
At June 30, 2020
Debt securities, money market instruments and other
United States government		7,827		2,797		(2	)		10,622		10,537		86
Dutch government		4,850		1,635		-			6,486		6,418		68
Other government		9,245		3,417		(19	)		12,642		12,012		631
Mortgage-backed securities		6,619		473		(77	)		7,015		6,424		590
Asset-backed securities		4,007		105		(74	)		4,038		1,628		2,410
Corporate		45,102		6,321		(398	)		51,024		45,598		5,426
Money market investments		7,463		-		-			7,463		6,676		787
Other		1,101		43		(104	)		1,040		696		343
Total		86,214		14,791		(675	)		100,330		89,989		10,341

Of which held by Aegon Americas and NL		77,100		13,773		(616	)		90,256		81,067		9,189


EUR millions	Amortized cost		Unrealized gains		Unrealized losses			Total fair value		Fair value of instruments with unrealized gains		Fair value of instruments with unrealized losses
At December 31, 2019
Debt securities, money market instruments and other
United States government		7,443		1,377		(8	)		8,812		8,478		334
Dutch government		4,869		1,448		-			6,316		6,267		49
Other government		8,901		2,989		(17	)		11,872		11,662		210
Mortgage-backed securities		6,366		470		(25	)		6,811		5,773		1,037
Asset-backed securities		3,776		103		(9	)		3,869		2,881		989
Corporate		40,552		4,853		(167	)		45,238		42,801		2,437
Money market investments		5,169		-		-			5,169		4,702		467
Other		976		49		(117	)		908		628		280
Total		78,052		11,289		(345	)		88,995		83,192		5,803

Of which held by Aegon Americas and NL		69,012		10,493		(327	)		79,178		74,025		5,153


Unrealized losses - debt securities, money market investments and other

EUR millions	Jun. 30, 2020						Dec. 31, 2019

	Carrying value of instruments with unrealized losses			Unrealized losses			Carrying value of instruments with unrealized losses		Unrealized losses
Residential mortgage-backed securities (RMBSs)		(321	)		(31	)		413		(18	)
Commercial mortgage-backed securities (CMBSs)		731			(36	)		494		(6	)
Asset-backed securities (ABSs) – CDOs backed by ABS, Corp. bonds, Bank loans		1,479			(41	)		662		(5	)
ABSs – Other		728			(26	)		242		(4	)
Financial Industry – Banking		612			(28	)		349		(20	)
Financial Industry – Insurance		106			(14	)		104		(5	)
Financial Industry – Other		1,182			(27	)		615		(15	)
Industrial		3,557			(280	)		1,293		(105	)
Utility		251			(14	)		248		(10	)
Government		523			(16	)		453		(23	)
Other		343			(104	)		279		(117	)
Total held by Aegon Americas and NL		9,189			(616	)		5,153		(327	)
Held by other segments		1,151			(58	)		650		(18	)
Total		10,341			(675	)		5,803		(345	)


AFS RMBS by quality
EUR millions	AAA		AA		A		BBB		<BBB		Total amortized cost		Total fair value
GSE guaranteed		1,206		34		-		-		-		1,240		1,275
Prime jumbo		5		14		1		1		17		38		45
Alt-A		10		96		13		9		210		338		406
Negative amortization floaters		-		2		-		8		365		375		423
Other housing		3		8		2		5		314		332		401
At June 30, 2020		1,224		154		17		23		905		2,323		2,550

Of which insured		-		-		15		4		84		103		52


ABS Americas and NL
EUR millions	AAA	AA	A	BBB	<BBB	Total amortized cost	Total fair value
Credit cards	83	1	-	-	-	83	98
Autos	33	61	27	44	43	208	207
Small business loans	-	-	1	5	12	19	18
CDOs backed by ABS, Corp. bonds, Bank loans	1,483	234	45	32	59	1,853	1,820
Other ABS	443	89	771	95	8	1,406	1,428
At June 30, 2020	2,041	385	844	177	122	3,569	3,570


	Jun. 30, 2020				Dec. 31, 2019
Debt securities	Carrying value of securities with gross unrealized losses		Gross unrealized losses		Carrying value of securities with gross unrealized losses		Gross unrealized losses
One year or less		310		(14)		247		(1)
Over 1 through 5 years		2,475		(114)		983		(26)
Over 5 through 10 years		2,773		(157)		1,175		(47)
Over 10 years		2,500		(227)		2,002		(135)
Total		8,059		(512)		4,407		(210)




	Jun. 30, 2020
Debt securities	Investment grade carrying value of securities with unrealized losses		Below investment grade carrying value of securities with unrealized losses		Investment grade unrealized loss		Below investment grade unrealized loss
0 – 6 months		4,898		1,370		(154)		(149)
6 – 12 months		366		69		(15)		(21)
> 12 months		1,060		295		(77)		(97)
Total		6,325		1,734		(246)		(266)




	Dec. 31, 2019
Debt securities	Investment grade carrying value of securities with unrealized losses		Below investment grade carrying value of securities with unrealized losses		Investment grade unrealized loss		Below investment grade unrealized loss
0 – 6 months		2,178		132		(35)		(7)
6 – 12 months		128		45		(2)		(4)
> 12 months		1,493		432		(52)		(110)
Total		3,799		608		(89)		(121)


Aging and severity unrealized losses debt securities
	Jun. 30, 2020					Dec. 31, 2019
EUR millions	Carrying value		Unrealized losses			Carrying value		Unrealized losses
CV 70 - 100% of amortized cost		1,320		(112	)		131	(6)
CV 40 - 70% of amortized cost		46		(29	)		1	(1)
CV < 40% of amortized cost		4		(8	)		-	-
0-6 months		1,370		(149)			132	(7)

CV 70 - 100% of amortized cost		56		(7	)		43	(3)
CV 40 - 70% of amortized cost		11		(7	)		1	(1)
CV < 40% of amortized cost		2		(7	)		-	-
6-12 months		69		(21)			45	(4)

CV 70 - 100% of amortized cost		54		(8	)		175	(21)
CV 40 - 70% of amortized cost		14		(11	)		33	(22)
CV < 40% of amortized cost		4		(12	)		4	(9)
12-24 months		73		(31)			213	(52)

CV 70 - 100% of amortized cost		185		(25	)		192	(24)
CV 40 - 70% of amortized cost		26		(20	)		13	(9)
CV < 40% of amortized cost		11		(21	)		14	(25)
> 24 months		222		(66)			219	(58)
Total		1,734		(266)			608	(121)