FORM 6-K

 

 

Securities and Exchange Commission

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Issuer

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

the Securities Exchange Act of 1934

February 2012

 

 

AEGON N.V.

 

 

AEGONplein 50

2591 TV THE HAGUE

The Netherlands

 

 

 

 

 

AEGON’s condensed consolidated interim financial statements Q4 2011, is included as an exhibit 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: February 17, 2012     By  

/s/ E. Lagendijk

      E. Lagendijk
      Executive Vice President and General Counsel

Exhibit A

 

LOGO

CONDENSED CONSOLIDATED

INTERIM FINANCIAL STATEMENTS

Q4 2011

TABLE OF CONTENTS

 

Condensed consolidated income statement

      p 2   

Condensed consolidated statement of comprehensive income

      p 3   

Condensed consolidated statement of financial position

      p 4   

Condensed consolidated statement of changes in equity

      p 5   

Condensed consolidated cash flow statement

      p 6   

Notes to the condensed consolidated interim financial statements

      p 7   

 

Unaudited

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CONDENSED CONSOLIDATED INCOME STATEMENT

 

EUR millions (except per share data)

    Notes      Q4 2011     Q4 2010     FY 2011     FY 2010  

Premium income

      4         4,437        4,777        19,521        21,097   

Investment income

      5         2,043        2,032        8,167        8,762   

Fee and commission income

      6         481        476        1,465        1,744   

Other revenues

         1        2        6        5   
     

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

         6,962        7,287        29,159        31,608   

Income from reinsurance ceded

      7         892        475        2,775        1,869   

Results from financial transactions

      8         5,873        4,208        (187 )      15,662   

Other income

      9         5        6        39        40   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total income

         13,732        11,976        31,786        49,179   

Benefits and expenses

      10         13,291        11,224        29,856        46,057   

Impairment charges / (reversals)

      11         176        317        483        701   

Interest charges and related fees

         130        95        491        426   

Other charges

      12         53        (1 )      69        122   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total charges

         13,650        11,635        30,899        47,306   

Share in net result of associates

         4        11        29        41   
     

 

 

    

 

 

    

 

 

    

 

 

  

Income / (loss) before tax

         86        352        916        1,914   

Income tax (expense) / benefit

         (5 )      (34 )      (44 )      (154 ) 
     

 

 

    

 

 

    

 

 

    

 

 

  

Net income / (loss)

         81        318        872        1,760   
     

 

 

    

 

 

    

 

 

    

 

 

  

Net income / (loss) attributable to:

            

Equity holders of AEGON N.V.

         79        318        869        1,759   

Non-controlling interests

         2        —          3        1   
     

 

 

    

 

 

    

 

 

    

 

 

  

Earnings and dividend per share (EUR per share)

            

Earnings per share 1

         0.02        0.16        (0.06 )      0.83   

Earnings per share, excluding premium on convertible core capital securities

         0.02        0.16        0.34        0.86   

Diluted earnings per share 1, 2

         0.02        0.16        (0.06 )      0.83   

Earnings per share after potential attribution to convertible core capital securities 1, 3

         —          0.14        —          0.76   

Diluted earnings per share after conversion of convertible core capital securities 1, 2

         —          0.13        —          0.68   

Dividend per common share

         —          —          —          —     
     

 

 

    

 

 

    

 

 

    

 

 

  

Net income / (loss) per common share calculation

            

Net income / (loss)

         79        318        869        1,759   

Preferred dividend

         —          —          (59 )      (90 ) 

Coupons on perpetuals

         (45 )      (45 )      (177 )      (187 ) 

Coupons and premium on convertible core capital securities

         —          —          (750 )      (63 ) 
     

 

 

    

 

 

    

 

 

    

 

 

  

Earnings attributable to common shareholders

         34        273        (117 )      1,419   

Potential coupon on convertible core capital securities

         —          (32 )      —          (127 ) 
     

 

 

    

 

 

    

 

 

    

 

 

  

Earnings after potential attribution to convertible core capital securities

         34        241        (117 )      1,292   

Weighted average number of common shares outstanding

         1,880        1,707        1,852        1,707   

Weighted average number of common shares outstanding, after conversion of convertible core capital securities

         —          2,082        —          2,165   

 

1 

After deduction of preferred dividend, coupons on perpetuals and coupons and premium on core capital securities.

2 

The potential conversion of the convertible core capital securities is taken into account in the calculation of diluted earnings per share if this would have a dilutive effect (i.e. diluted earnings per share would be lower than the earnings after potential attribution to convertible core capital securities).

3 

Reflect basic earnings per share. For Q4 2011, basic earnings per share is EUR 0.02

 

Unaudited

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

EUR millions

   Q4 2011     Q4 2010     FY 2011     FY 2010  

Net income / (loss)

      81        318        872        1,760   

Other comprehensive income:

         

Gains / (losses) on revaluation of available-for-sale investments

      1,265        (2,128 )      3,113        3,873   

(Gains) / losses transferred to the income statement on disposal and impairment of available-for-sale investments

      (175 )      32        (513 )      (203 ) 

Changes in revaluation reserve real estate held for own use

      —          —          3        4   

Changes in cash flow hedging reserve

      151        120        1,058        373   

Movement in foreign currency translation and net foreign investment hedging reserve

      550        331        409        1,054   

Equity movements of associates

      (10 )      (35 )      (18 )      (25 ) 

Disposal of group assets

      —          —          —          (22 ) 

Aggregate tax effect of items recognized in other comprehensive income

      (377 )      576        (1,167 )      (1,409 ) 

Other

      —          1        4        (10 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Other comprehensive income for the period

      1,404        (1,103 )      2,889        3,635   

Total comprehensive income

     1,485        (785 )      3,761        5,395   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income attributable to:

         

Equity holders of AEGON N.V.

      1,483        (785 )      3,758        5,394   

Non-controlling interests

      2        —          3        1   

 

Unaudited

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

EUR millions

   Notes      Dec. 31,
2011		      Dec. 31,
2010		  
        
        

ASSETS

        

Intangible assets

     13         3,285         4,359   

Investments

     14         144,079         143,188   

Investments for account of policyholders

     15         142,529         146,237   

Derivatives

     16         15,504         6,251   

Investments in associates

        742         733   

Reinsurance assets

     17         11,517         5,580   

Deferred expenses and rebates

     18         11,633         11,948   

Other assets and receivables

        8,184         8,695   

Cash and cash equivalents

        8,104         5,231   
     

 

 

     

 

 

  

Total assets

        345,577         332,222   

EQUITY AND LIABILITIES

        

Shareholders’ equity

        21,000         17,328   

Convertible core capital securities

     20         —           1,500   

Other equity instruments

        4,720         4,704   
     

 

 

     

 

 

  

Issued capital and reserves attributable to equity holders of AEGON N.V.

        25,720         23,532   

Non-controlling interests

        14         11   
     

 

 

     

 

 

  

Group equity

        25,734         23,543   

Trust pass-through securities

         159         143   

Subordinated borrowings

         18         —     

Insurance contracts

        105,175         100,506   

Insurance contracts for account of policyholders

        73,425         77,650   

Investment contracts

        20,847         23,237   

Investment contracts for account of policyholders

        71,433         69,527   

Derivatives

     16         12,728         5,971   

Borrowings

     21         10,141         8,518   

Other liabilities

        25,917         23,127   
     

 

 

     

 

 

  

Total liabilities

        319,843         308,679   
     

 

 

     

 

 

  

Total equity and liabilities

        345,577         332,222   
     

 

 

     

 

 

  

 

Unaudited

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

EUR millions

    Share
capital 1		      Retained
earnings		     Revaluation
reserves		     Other
reserves		     Convertible
core capital
securities		     Other equity
instruments		     Issued
capital  and
reserves 2		     Non-
controlling
interests		      Total  

Full year ended December 31, 2011

                     

At beginning of year

      8,184         9,529        958        (1,343 )      1,500        4,704        23,532        11         23,543   

Net income recognized in the income statement

      —           869        —          —          —          —          869        3         872   

Other comprehensive income:

                     

Gains / (losses) on revaluation of available-for-sale investments

      —           —          3,113        —          —          —          3,113        —           3,113   

(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments

      —           —          (513 )      —          —          —          (513 )      —           (513 ) 

Changes in revaluation reserve real estate held for own use

      —           —          3        —          —          —          3        —           3   

Changes in cash flow hedging reserve

      —           —          1,058        —          —          —          1,058        —           1,058   

Movement in foreign currency translation and net foreign investment hedging reserves

      —           —          —          409        —          —          409        —           409   

Equity movements of associates

      —           —          —          (18 )      —          —          (18 )      —           (18 ) 

Aggregate tax effect of items recognized in other comprehensive income

      —           —          (1,155 )      (12 )      —          —          (1,167 )      —           (1,167 ) 

Other

      —           4        —          —          —          —          4        —           4   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total other comprehensive income

      —           4        2,506        379        —          —          2,889        —           2,889   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total comprehensive income for 2011

      —           873        2,506        379        —          —          3,758        3         3,761   

Shares issued

      913         —          —          —          —          —          913        —           913   

Repurchase of convertible core capital securities

      —           —          —          —          (1,500 )      —          (1,500 )      —           (1,500 ) 

Preferred dividend

      —           (59 )      —          —          —          —          (59 )      —           (59 ) 

Coupons on perpetuals

      —           (177 )      —          —          —          —          (177 )      —           (177 ) 

Coupons and premium on convertible core capital securities

      —           (750 )      —          —          —          —          (750 )      —           (750 ) 

Share options and incentive plans

      —           —          —          —          —          16        16        —           16   

Other

      —           (13 )      —          —          —          —          (13 )      —           (13 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

At end of period

      9,097         9,403        3,464        (964 )      —          4,720        25,720        14         25,734   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Full year ended December 31, 2010

                     

At beginning of year

      8,184         8,103        (1,709 )      (2,304 )      2,000        4,709        18,983        10         18,993   

Net income / (loss) recognized in the income statement

      —           1,759        —          —          —          —          1,759        1         1,760   

Other comprehensive income:

                     

Gains / (losses) on revaluation of available-for-sale investments

      —           —          3,873        —          —          —          3,873        —           3,873   

(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments

      —           —          (203 )      —          —          —          (203 )      —           (203 ) 

Changes in revaluation reserve real estate held for own use

      —           —          4        —          —          —          4        —           4   

Changes in cash flow hedging reserve

      —           —          373        —          —          —          373        —           373   

Movement in foreign currency translation and net foreign investment hedging reserves

      —           —          —          1,054        —          —          1,054        —           1,054   

Equity movements of associates

      —           —          —          (25 )      —          —          (25 )      —           (25 ) 

Disposal of group assets

      —           —          (22 )      —          —          —          (22 )      —           (22 ) 

Aggregate tax effect of items recognized in other comprehensive income

      —           —          (1,358 )      (51 )      —          —          (1,409 )      —           (1,409 ) 

Other

      —           7        —          (17 )      —          —          (10 )      —           (10 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total other comprehensive income

      —           7        2,667        961        —          —          3,635        —           3,635   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total comprehensive income / (loss) for 2010

      —           1,766        2,667        961        —          —          5,394        1         5,395   

Repayment convertible core capital securities

      —           —          —          —          (500 )      —          (500 )      —           (500 ) 

Preferred dividend

      —           (90 )      —          —          —          —          (90 )      —           (90 ) 

Coupons on perpetual securities

      —           (187 )      —          —          —          —          (187 )      —           (187 ) 

Coupons and premium on convertible core capital securities

      —           (63 )      —          —          —          —          (63 )      —           (63 ) 

Share options and incentive plans

      —           —          —          —          —          (5 )      (5 )      —           (5 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

At end of period

      8,184         9,529        958        (1,343 )      1,500        4,704        23,532        11         23,543   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

 

1

For a breakdown of share capital please refer to note 19.

2

Issued capital and reserves attributable to equity holders of AEGON N.V.

 

Unaudited

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CONDENSED CONSOLIDATED CASH FLOW STATEMENT

 

EUR millions

   FY 2011     FY 2010  

Cash flow from operating activities

      2,266        1,263   

Purchases and disposals of intangible assets

      (17 )      (18 ) 

Purchases and disposals of equipment and other assets

      (54 )      (83 ) 

Purchases, disposals and dividends of subsidiaries and associates

      724        (177 ) 
  

 

 

    

 

 

  

Cash flow from investing activities

      653        (278 ) 

Issuance and purchase of share capital

      913        —     

Dividends paid

      (59 )      (90 ) 

Issuances, repurchases and coupons of convertible core capital securities

      (2,250 )      (563 ) 

Issuances, repurchases and coupons of perpetuals

      (237 )      (251 ) 

Issuances and repayments on borrowings

      1,259        1,023   
  

 

 

    

 

 

  

Cash flow from financing activities

      (374 )      119   

Net increase / (decrease) in cash and cash equivalents

      2,545        1,104   
  

 

 

    

 

 

  

Net cash and cash equivalents at January 1

      5,174        4,013   

Effects of changes in exchange rate

      107        57   
  

 

 

    

 

 

  

Net cash and cash equivalents at end of period

      7,826        5,174   
  

 

 

    

 

 

  
     Dec. 31,
2011		     Dec. 31,
2010		  
    

Cash and cash equivalents

      8,104        5,231   

Bank overdrafts

      (278 )      (57 ) 
  

 

 

    

 

 

  

Net cash and cash equivalents

      7,826        5,174   
  

 

 

    

 

 

  

 

Unaudited

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Notes to the condensed consolidated interim financial statements

Amounts in EUR millions, unless otherwise stated

 

1. Basis of presentation

The condensed consolidated interim financial statements as at, and for the fourth quarter ended, December 31, 2011, have been prepared in accordance with IAS 34 ‘Interim financial reporting’ as adopted by the European Union (EU) as issued by the International Accounting Standards Board (IASB). It does not include all of the information required for a full set of financial statements prepared in accordance with IFRS and should therefore be read together with the 2010 consolidated financial statements of AEGON N.V. as included in AEGON’s Annual Report for 2010. AEGON’s Annual Report for 2010 is available on its website (www.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 were approved by the Executive Board on February 16, 2012.

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

Correction of immaterial errors

AEGON identified an immaterial error in AEGON’s financial statements issued prior to 2008. This error is related to the value of AEGON’s deferred tax and current tax balances in the Americas, resulting in an overstatement of Other assets and receivables, offset by an overstatement of Other liabilities and a net understatement of equity in the comparative periods. AEGON assessed the qualitative and quantitative impact of this correction on previously issued financial statements and concluded that it was immaterial in all prior periods.

AEGON has therefore made correcting adjustments to the opening balances of 2010 (increasing Group equity by EUR 110 million) in the current condensed consolidated interim financial statements in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

This error had no impact on AEGON’s income statement, including net income or earnings per share, reported in these periods.

The net effect of the correcting adjustments, including the foreign exchange impact, on the individual financial statement line items of the condensed consolidated interim financial statements for the periods presented are as follows:

Condensed consolidated statement of financial position

 

EUR millions

    Other
assets and
receivables		     Other
liabilities		     Shareholders’
equity		      Group
equity		  

December 31, 2010

          

As previously reported

      8,776        23,326        17,210         23,425   

Increase / (decrease)

      (81 )      (199 )      118         118   
  

 

 

    

 

 

    

 

 

     

 

 

  

As corrected

      8,695        23,127        17,328         23,543   
  

 

 

    

 

 

    

 

 

     

 

 

  

Condensed consolidated statement of changes in equity

 

EUR millions

    Retained
earnings		      Other
reserves		     Group
equity		  

December 31, 2010

        

As previously reported

      9,421         (1,353 )      23,425   

Increase / (decrease)

      108         10        118   
  

 

 

     

 

 

    

 

 

  

As corrected

      9,529         (1,343 )      23,543   
  

 

 

     

 

 

    

 

 

  

January 1, 2010

        

As previously reported

      7,995         (2,306 )      18,883   

Increase / (decrease)

      108         2        110   
  

 

 

     

 

 

    

 

 

  

As corrected

      8,103         (2,304 )      18,993   
  

 

 

     

 

 

    

 

 

  

2. 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 2010 consolidated financial statements, which were prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board as adopted by the European Union.

Taxes on income for the Q4 2011 interim period are accrued using the tax rate that would be applicable to expected total annual earnings.

 

 

Unaudited

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The following standards, interpretations, amendments to standards and interpretations became effective in 2011:

 

  •  

Amendment to IAS 24 - Related party disclosures

 

  •  

Amendment to IFRS 1 - First time adoption

 

  •  

Amendment to IFRIC 14 - Prepayments of a minimum funding requirement

 

  •  

Amendment to IAS 32 - Classification of Rights Issues

 

  •  

IFRIC 19 - Extinguishing financial liabilities with equity instruments

 

  •  

Improvements to IFRS (2010)

None of these new or revised standards and interpretations had a significant effect on the condensed consolidated interim financial statements for the period ended December 31, 2011.

AEGON has not early adopted any other standards, interpretations or amendments, which have been issued but are not yet effective.

Critical accounting estimates

Certain amounts recorded in the condensed consolidated interim financial statements reflect estimates and assumptions made by management. Actual results may differ from the estimates made.

Assumptions changes

In Q3 2011, AEGON has lowered its long term assumption for 10 year US Treasury yields by 50 bps to 4.75% (graded uniformly from current yields over the next five years) and lowered the 90 day rate to 0.2% for the next two years followed by a three year grade to 3%. In addition, AEGON has lowered its assumed return for separate account bond fund returns by 200 bps to 4% over the next five years, followed by a return of 6% thereafter. The bond fund return is a gross assumption from which asset management and policy fees are deducted to determine the policyholder return.

Exchange rates

The following exchange rates are applied for the condensed consolidated interim financial statements:

Income statement items: average rate 1 EUR = USD 1.3909 (2010: USD 1.3210); 1 EUR = GBP 0.8667 (2010: GBP 0.8544).

Balance sheet items: closing rate 1 EUR = USD 1.2982 (2010: USD 1.3362); 1 EUR = GBP 0.8353 (2010: GBP 0.8608).

 

 

Unaudited

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3. Segment information

3.1 Income statement

Three months ended December 31, 2011

 

EUR millions

    Americas     The
Netherlands		     United
Kingdom		     New
Markets		     Holding
and
other
activities		     Eliminations     Non-IFRS
Total		     Associates
eliminations		     Total
IFRS
based		  

Three months ended December 31, 2011

                   

Underlying earnings before tax geographically

      328        75        (26 )      53        (84 )      —          346        (4 )      342   

Fair value items

      (139 )      189        3        (10 )      (63 )      —          (20 )      —          (20 ) 

Realized gains / (losses) on investments

      8        33        8        —          —          —          49        —          49   

Impairment charges

      (70 )      (5 )      —          (23 )      —          —          (98 )      2        (96 ) 

Impairment reversals

      4        —          —          —          —          —          4        —          4   

Other income / (charges)

      (36 )      (84 )      (57 )      1        (18 )      —          (194 )      —          (194 ) 

Run-off businesses

      1        —          —          —          —          —          1        —          1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before tax

      96        208        (72 )      21        (165 )      —          88        (2 )      86   

Income tax (expense) / benefit

      4        (60 )      (16 )      (5 )      70        —          (7 )      2        (5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      100        148        (88 )      16        (95 )      —          81        —          81   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Inter-segment underlying earnings

      (31 )      (62 )      (16 )      55        54           

Revenues

                   

Life insurance gross premiums

      1,643        379        1,490        364        —          —          3,876        (71 )      3,805   

Accident and health insurance

      463        30        —          11        —          —          504        1        505   

General insurance

      —          94        —          33        —          —          127        —          127   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross premiums

      2,106        503        1,490        408        —          —          4,507        (70 )      4,437   

Investment income

      910        597        488        64        115        (113 )      2,061        (17 )      2,044   

Fee and commission income

      306        78        29        120        —          (53 )      480        —          480   

Other revenues

      —          —          —          (1 )      2        —          1        —          1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      3,322        1,178        2,007        591        117        (166 )      7,049        (87 )      6,962   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Inter-segment revenues

      2        1        —          53        110           

Three months ended December 31, 2010

 

EUR millions

    Americas     The
Netherlands		     United
Kingdom		     New
Markets		     Holding
and
other
activities		     Eliminations     Non-IFRS
Total		     Associates
eliminations		     Total
IFRS
based		  

Three months ended December 31, 2010

                   

Underlying earnings before tax geographically

      369        87        (6 )      59        (57 )      —          452        (3 )      449   

Fair value items

      8        18        —          —          4        —          30        —          30   

Realized gains / (losses) on investments

      247        1        8        —          (1 )      —          255        —          255   

Impairment charges

      (115 )      (1 )      (24 )      (11 )      —          —          (151 )      —          (151 ) 

Impairment reversals

      17        1        —          —          —          —          18        —          18   

Other income / (charges)

      (200 )      5        (13 )      (40 )      (11 )      1        (258 )      —          (258 ) 

Run-off businesses

      9        —          —          —          —          —          9        —          9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before tax

      335        111        (35 )      8        (65 )      1        355        (3 )      352   

Income tax (expense) / benefit

      (40 )      (30 )      16        1        16        —          (37 )      3        (34 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      295        81        (19 )      9        (49 )      1        318        —          318   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Inter-segment underlying earnings

      (40 )      (20 )      (18 )      70        8           

Revenues

                   

Life insurance gross premiums

      1,707        516        1,674        367        —          —          4,264        (125 )      4,139   

Accident and health insurance

      465        27        —          18        —          —          510        (1 )      509   

General insurance

      —          94        —          35        —          —          129        —          129   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross premiums

      2,172        637        1,674        420        —          —          4,903        (126 )      4,777   

Investment income

      987        530        471        58        83        (79 )      2,050        (18 )      2,032   

Fee and commission income

      278        89        43        135        —          (69 )      476        —          476   

Other revenues

      —          —          —          2        —          —          2        —          2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      3,437        1,256        2,188        615        83        (148 )      7,431        (144 )      7,287   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Inter-segment revenues

      —          —          1        69        78           

 

Unaudited

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Full year ended December 31, 2011

 

EUR millions

    Americas     The
Netherlands		     United
Kingdom		     New
Markets		     Holding
and
other
activities		     Eliminations     Non-IFRS
Total		     Associates
eliminations		     Total
IFRS
based		  

Full year ended December 31, 2011

                   

Underlying earnings before tax geographically

      1,310        298        5        212        (306 )      3        1,522        (13 )      1,509   

Fair value items

      (478 )      156        (6 )      (29 )      (59 )      —          (416 )      —          (416 ) 

Realized gains / (losses) on investments

      124        269        51        2        —          —          446        —          446   

Impairment charges

      (307 )      (16 )      (62 )      (58 )      —          —          (443 )      4        (439 ) 

Impairment reversals

      54        1        —          —          —          —          55        —          55   

Other income / (charges)

      (35 )      (164 )      (57 )      7        (18 )      —          (267 )      —          (267 ) 

Run-off businesses

      28        —          —          —          —          —          28        —          28   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before tax

      696        544        (69 )      134        (383 )      3        925        (9 )      916   

Income tax (expense) / benefit

      (26 )      (125 )      17        (50 )      131        —          (53 )      9        (44 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      670        419        (52 )      84        (252 )      3        872        —          872   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Inter-segment underlying earnings

      (124 )      (105 )      (68 )      224        73           

Revenues

                   

Life insurance gross premiums

      6,232        3,213        6,474        1,317        —          —          17,236        (383 )      16,853   

Accident and health insurance

      1,780        216        —          71        —          —          2,067        —          2,067   

General insurance

      —          452        —          149        —          —          601        —          601   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross premiums

      8,012        3,881        6,474        1,537        —          —          19,904        (383 )      19,521   

Investment income

      3,638        2,192        2,154        247        315        (308 )      8,238        (70 )      8,168   

Fee and commission income

      749        329        137        464        —          (215 )      1,464        —          1,464   

Other revenues

      1        —          —          1        4        —          6        —          6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      12,400        6,402        8,765        2,249        319        (523 )      29,612        (453 )      29,159   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Inter-segment revenues

      6        2        2        215        298           

Full year ended December 31, 2010

 

EUR millions

    Americas     The
Netherlands		     United
Kingdom		     New
Markets		     Holding
and
other
activities		     Eliminations     Non-IFRS
Total		     Associates
eliminations		     Total
IFRS
based		  

Full year ended December 31, 2010

                   

Underlying earnings before tax geographically

      1,459        385        72        200        (283 )      —          1,833        (9 )      1,824   

Fair value items

      (24 )      361        (9 )      (10 )      (97 )      —          221        —          221   

Realized gains / (losses) on investments

      380        155        14        13        96        —          658        (2 )      656   

Impairment charges

      (464 )      (17 )      (39 )      (22 )      —          —          (542 )      —          (542 ) 

Impairment reversals

      81        6        3        —          —          —          90        —          90   

Other income / (charges)

      (306 )      38        48        (56 )      (34 )      1        (309 )      —          (309 ) 

Run-off businesses

      (26 )      —          —          —          —          —          (26 )      —          (26 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before tax

      1,100        928        89        125        (318 )      1        1,925        (11 )      1,914   

Income tax (expense) / benefit

      31        (217 )      (5 )      (34 )      60        —          (165 )      11        (154 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      1,131        711        84        91        (258 )      1        1,760        —          1,760   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Inter-segment underlying earnings

      (154 )      (51 )      (67 )      248        24           

Revenues

                   

Life insurance gross premiums

      6,877        3,185        7,425        1,306        —          —          18,793        (427 )      18,366   

Accident and health insurance

      1,850        201        —          72        —          —          2,123        (2 )      2,121   

General insurance

      —          451        —          159        —          —          610        —          610   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross premiums

      8,727        3,837        7,425        1,537        —          —          21,526        (429 )      21,097   

Investment income

      4,073        2,161        2,340        234        305        (279 )      8,834        (72 )      8,762   

Fee and commission income

      998        348        164        479        —          (245 )      1,744        —          1,744   

Other revenues

      1        —          —          4        1        —          6        (1 )      5   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      13,799        6,346        9,929        2,254        306        (524 )      32,110        (502 )      31,608   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Inter-segment revenues

      —          1        3        246        274           

 

Unaudited

    LOGO    Page 10

 

Non-IFRS measures

This report includes the non-IFRS financial measure: underlying earnings before tax. The reconciliation of this measure to the most comparable IFRS measure is presented in the tables in this note. This non-IFRS measure is calculated by consolidating on a proportionate basis the revenues and expenses of AEGON’s associated companies in Spain, India, Brazil and Mexico. AEGON believes that its non-IFRS measure provides meaningful information about the underlying operating results of AEGON’s business including insight into the financial measures that senior management uses in managing the business.

AEGON’s senior management is compensated based in part on AEGON’s results against targets using the non-IFRS measure presented here. While many other insurers in AEGON’s peer group present substantially similar non-IFRS measures, the non-IFRS measure presented in this document may nevertheless differ from the non-IFRS measures presented by other insurers. There is no standardized meaning to these measures under IFRS or any other recognized set of accounting standards and readers are cautioned to consider carefully the different ways in which AEGON and its peers present similar information before comparing them.

AEGON believes the non-IFRS measure shown herein, when read together with AEGON’s reported IFRS financial statements, provides meaningful supplemental information for the investing public to evaluate AEGON’s business after eliminating the impact of current IFRS accounting policies for financial instruments and insurance contracts, which embed a number of accounting policy alternatives that companies may select in presenting their results (i.e. companies can use different local GAAPs) and that can make the comparability from period to period difficult.

Underlying earnings

Certain assets held by AEGON Americas, AEGON The Netherlands and AEGON UK are carried at fair value and managed on a total return basis, with no offsetting changes in the valuation of related liabilities. These include assets such as investments in hedge funds, private equities, real estate limited partnerships, convertible bonds and structured products. Underlying earnings exclude any over- or underperformance compared to management’s long-term expected return on assets.

Based on current holdings and asset returns, the long-term expected return on an annual basis is 8-10%, depending on asset class, including cash income and market value changes. The expected earnings from these asset classes are net of deferred policy acquisition costs (DPAC) where applicable.

In addition, certain products offered by AEGON Americas contain guarantees and are reported on a fair value basis, including the segregated funds offered by AEGON Canada and the total return annuities and guarantees on variable annuities of AEGON USA. The earnings on these products are impacted by movements in equity markets and risk-free interest rates. Short-term developments in the financial markets may therefore cause volatility in earnings. Included in underlying earnings is a long-term expected return on these products and excluded is any over- or underperformance compared to management’s expected return. The fair value movements of certain guarantees and the fair value change of derivatives that hedge certain risks on these guarantees of AEGON The Netherlands and Variable Annuities Europe (included in New Markets) are excluded from underlying earnings, and the long-term expected return for these guarantees is set at zero.

Holding and other activities include certain issued bonds that are held at fair value through profit or loss (FVTPL). The interest rate risk on these bonds is hedged using swaps. The fair value movement resulting from changes in AEGON’s credit spread used in the valuation of these bonds are excluded from underlying earnings and reported under fair value items.

Fair value items

Fair value items include the over- or underperformance of investments and guarantees held at fair value for which the expected long-term return is included in underlying earnings. Changes to these long-term return assumptions are also included in the fair value items.

In addition, hedge ineffectiveness on hedge transactions, fair value changes on economic hedges without natural offset in earnings and for which no hedge accounting is applied and fair value movements on real estate are included under fair value items.

 

 

Unaudited

    LOGO    Page 11

Realized gains or losses on investments

Includes realized gains and losses on available-for-sale investments, mortgage loans and loan portfolios.

Impairment charges / reversals

Includes impairments and reversals on available-for-sale debt securities and impairments on shares including the effect of deferred policyholder acquisition costs, mortgage loans and loan portfolios on amortized cost and associates respectively.

Other income or charges

Other income or charges is used to report any items which cannot be directly allocated to a specific line of business. Also items that are outside the normal course of business are reported under this heading, including impairments on non-financial assets.

Other charges include restructuring charges that are considered other charges for segment reporting purposes because they are outside the normal course of business. In the condensed consolidated income statement, these charges are included in operating expenses.

Run-off businesses

Includes underlying results of business units where management has decided to exit the market and to run off the existing block of business. Currently, this line includes the run-off of the institutional spread-based business, structured settlements blocks of business, Bank-Owned and Corporate-Owned Life Insurance (BOLI/COLI) business and life reinsurance business in the United States. AEGON has other blocks of business for which sales have been discontinued and of which the earnings are included in underlying earnings.

On April 26, 2011, AEGON publicly announced the decision of its Executive Board to divest its life reinsurance activities, Transamerica Reinsurance, to SCOR. These activities are no longer reported in underlying earnings but are reflected in the run-off businesses line in the segment reporting (both in 2011 and in 2010). More details on this transaction are given in note 23.

In December 2010, AEGON publicly announced the decision of its Executive Board to discontinue new sales of executive non-qualified benefit plans and related BOLI/COLI business in the United States. Earnings from the BOLI/COLI business are no longer reported in underlying earnings but reflected in the run-off businesses line in the segment reporting (both in 2011 and 2010).

The comparative figures, affecting the Americas segment, regarding the underlying earnings and the run-off businesses have been revised as follows:

 

EUR millions

   Reported     Reclassification     Revised  
    Reinsurance     BOLI/COLI    

Three months ended December 31,
2010

        

Underlying earnings before tax geographically

     486        (19 )      (18 )      449   

Fair value items

     30            30   

Realized gains / (losses) on investments

     255            255   

Impairment charges

     (151 )          (151 ) 

Impairment reversals

     18            18   

Other income / (charges)

     (258 )          (258 ) 

Run-off businesses

     (28 )      19        18        9   
 

 

 

    

 

 

    

 

 

    

 

 

  

Income before tax

     352            352   

Income tax (expense) / benefit

     (34 )          (34 ) 
 

 

 

        

 

 

  

Net income

     318            318   
 

 

 

        

 

 

  

 

EUR millions

   Reported     Reclassification     Revised  
    Reinsurance     BOLI/COLI    

Full year
ended December 31,
2010

        

Underlying earnings before tax geographically

     1,963        (79 )      (60 )      1,824   

Fair value items

     221            221   

Realized gains / (losses) on investments

     656            656   

Impairment charges

     (542 )          (542 ) 

Impairment reversals

     90            90   

Other income / (charges)

     (309 )          (309 ) 

Run-off businesses

     (165 )      79        60        (26 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Income before tax

     1,914            1,914   

Income tax (expense) / benefit

     (154 )          (154 ) 
 

 

 

        

 

 

  

Net income

     1,760            1,760   
 

 

 

        

 

 

  

Share in earnings of associates

Earnings from the AEGON’s associates in insurance companies in Spain, India, Brazil and Mexico are reported on an underlying earnings basis. Other associates are included on a net income basis.

 

 

Unaudited

    LOGO    Page 12

3.2 Investments geographically

At December 31, 2011

 

                                        amounts in million EUR (unless otherwise stated)  

Americas

USD

      United
Kingdom
GBP		     

At December 31, 2011

    Americas      The
Netherlands		      United
Kingdom		      New
Markets		      Holding &
other
activities		      Eliminations     Total
EUR		  
      Investments                    
  1,570         45       Shares      1,209         505         54         60         11         (2 )      1,837   
  86,056         8,261       Debt securities      66,289         17,640         9,890         2,600         —           —          96,419   
  13,341         7       Loans      10,277         18,825         8         626         —           —          29,736   
  16,196         —         Other financial assets      12,476         40         —           43         744         —          13,303   
  1,006         —         Investments in real estate      775         2,009         —           —           —           —          2,784   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  118,169         8,313       Investments general account      91,026         39,019         9,952         3,329         755         (2 )      144,079   
  —           21,755       Shares      —           7,608         26,045         3,459         —           (4 )      37,108   
  —           10,003       Debt securities      —           15,124         11,975         277         —           —          27,376   
  80,137         7,096      

Separate accounts and investment funds

      61,729         —           8,495         1,060         —           —          71,284   
  —           2,940       Other financial assets      —           491         3,519         1,619         —           —          5,629   
  —           946       Investments in real estate      —           —           1,132         —           —           —          1,132   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  80,137         42,740      

Investments for account of policyholders

      61,729         23,223         51,166         6,415         —           (4 )      142,529   
  198,306         51,053       Investments on balance sheet      152,755         62,242         61,118         9,744         755         (6 )      286,608   
  119,371         —        

Off balance sheet investments third parties

      91,951         —           —           44,959         —           —          136,910   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  317,677         51,053      

Total revenue generating investments

      244,706         62,242         61,118         54,703         755         (6 )      423,518   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
      Investments                    
  98,007         8,266       Available-for-sale      75,494         18,016         9,896         2,427         27         —          105,860   
  13,341         7       Loans      10,277         18,825         8         626         —           —          29,736   
  —           —         Held-to-maturity      —           —           —           168         —           —          168   
  85,952         41,834      

Financial assets at fair value through profit or loss

      66,209         23,392         50,082         6,523         728         (6 )      146,928   
  1,006         946       Investments in real estate      775         2,009         1,132         —           —           —          3,916   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  198,306         51,053       Total investments on balance sheet      152,755         62,242         61,118         9,744         755         (6 )      286,608   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  100         7       Investments in associates      77         52         9         600         4         —          742   
  34,224         5,919       Other assets      26,363         19,403         7,086         2,011         36,725         (32,516 )      59,072   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  232,630         56,979       Consolidated total assets      179,195         81,697         68,213         12,355         37,484         (32,522 )      346,422   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

The decline in off balance sheet investments third parties in The Netherlands, compared to December 31, 2010, reflect a transfer of third party asset management operations from AEGON The Netherlands to AEGON Asset Management, included in New Markets.

 

Unaudited

    LOGO    Page 13

At December 31, 2010

 

                                       

amounts in million EUR (unless otherwise stated)

  

Americas

USD

      United
Kingdom
GBP		     

At December 31, 2010

    Americas      The
Netherlands		      United
Kingdom		      New
Markets		      Holding &
other
activities		      Eliminations     Total
EUR		  
      Investments                    
  1,737         53       Shares      1,300         945         62         72         —           (3 )      2,376   
  89,687         7,917       Debt securities      67,121         18,504         9,198         2,041         —           —          96,864   
  15,249         8       Loans      11,412         15,629         9         653         —           —          27,703   
  17,481         —         Other financial assets      13,083         40         —           45         293         —          13,461   
  974         —         Investments in real estate      729         2,055         —           —           —           —          2,784   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  125,128         7,978       Investments general account      93,645         37,173         9,269         2,811         293         (3 )      143,188   
  —           25,470       Shares      —           8,087         29,589         3,139         —           (5 )      40,810   
  —           13,573       Debt securities      —           14,435         15,768         223         —           —          30,426   
  79,308         6,393      

Separate accounts and investment funds

      59,353         —           7,427         1,309         —           —          68,089   
  —           3,250       Other financial assets      —           536         3,775         1,467         —           —          5,778   
  —           976       Investments in real estate      —           —           1,134         —           —           —          1,134   

 

 

     

 

 

     

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  79,308         49,662      

Investments for account of policyholders

      59,353         23,058         57,693         6,138         —           (5 )      146,237   
  204,436         57,640       Investments on balance sheet      152,998         60,231         66,962         8,949         293         (8 )      289,425   
  115,297         —        

Off balance sheet investments third parties

      86,287         12,353         —           25,126         —           —          123,766   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  319,733         57,640      

Total revenue generating investments

      239,285         72,584         66,962         34,075         293         (8 )      413,191   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
      Investments                    
  102,792         7,899       Available-for-sale      76,929         19,261         9,177         1,879         4         —          107,250   
  15,249         8       Loans      11,412         15,629         9         653         —           —          27,703   
  —           —         Held-to-maturity      —           —           —           139         —           —          139   
  85,421         48,757      

Financial assets at fair value through profit or loss

      63,928         23,286         56,642         6,278         289         (8 )      150,415   
  974         976       Investments in real estate      729         2,055         1,134         —           —           —          3,918   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  204,436         57,640       Total investments on balance sheet      152,998         60,231         66,962         8,949         293         (8 )      289,425   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  114         8       Investments in associates      85         59         9         576         4         —          733   
  27,238         5,415       Other assets      20,385         11,626         6,290         1,703         30,804         (28,744 )      42,064   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
  231,788         63,063       Consolidated total assets      173,468         71,916         73,261         11,228         31,101         (28,752 )      332,222   

 

 

     

 

 

        

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

Unaudited

    LOGO    Page 14

4. Premium income and premium to reinsurers

 

EUR millions

   Q4 2011      Q4 2010      FY 2011      FY 2010  

Gross

            

Life

      3,805         4,139         16,853         18,366   

Non-Life

      632         638         2,668         2,731   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

     4,437         4,777         19,521         21,097   
  

 

 

     

 

 

     

 

 

     

 

 

  

Reinsurance

            

Life

      891         417         3,042         1,509   

Non-Life

      93         88         365         350   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

     984         505         3,407         1,859   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

Reinsurance premiums increased mainly as a result of the increased external reinsurance life premium following the divestment of the life reinsurance business, Transamerica Reinsurance, to SCOR. Refer to note 23 for more details.

 

 

5. Investment income

 

EUR millions

   Q4 2011      Q4 2010      FY 2011      FY 2010  

Interest income

      1,818         1,858         7,256         7,958   

Dividend income

      186         132         745         632   

Rental income

      39         42         166         172   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total investment income

     2,043         2,032         8,167         8,762   
  

 

 

     

 

 

     

 

 

     

 

 

  

Investment income related to general account

      1,494         1,501         5,823         6,258   

Investment income for account of policyholders

      549         531         2,344         2,504   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

     2,043         2,032         8,167         8,762   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

6. Fee and commission income

Quarterly Fee and commission income is in line with the same quarter of last year. The decrease in full-year Fee and commission income originates from a recapture fee paid as part of the divestment of the life reinsurance business of Transamerica Reinsurance to SCOR. Refer to note 23 for more details on this transaction.

7. Income from reinsurance ceded

The increase in Income from reinsurance ceded is mainly the result of the increased income from external reinsurance following the divestment of the life reinsurance business, Transamerica Reinsurance, to SCOR. Refer to note 23 for more details on this transaction.

 

 

Unaudited

    LOGO    Page 15

8. Results from financial transactions

 

EUR millions

   Q4 2011     Q4 2010     FY 2011     FY 2010  

Net fair value change of general account financial investments at FVTPL other than derivatives

      18        108        44        257   

Realized gains and (losses) on financial investments

      222        66        803        564   

Gains and (losses) on investments in real estate

      (13 )      186        (49 )      135   

Net fair value change of derivatives

      259        (1,243 )      1,165        1,340   

Net fair value change on for account of policyholder financial assets at FVTPL

      5,401        5,035        (2,133 )      13,217   

Net fair value change on investments in real estate for account of policyholders

      7        (15 )      20        73   

Net foreign currency gains and (losses)

      (6 )      (3 )      (17 )      60   

Net fair value change on borrowings and other financial liabilities

      (15 )      56        (24 )      (2 ) 

Realized gains and (losses) on repurchased debt

      —          18        4        18   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

     5,873        4,208        (187 )      15,662   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

Net fair value changes on for account of policyholder financial assets at fair value through profit and loss are

offset by amounts in Claims and benefits reported in the Benefits and expenses line (note 10).