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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
November 2015
AEGON N.V.
Aegonplein 50
2591 TV THE HAGUE
The Netherlands
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Aegon’s condensed consolidated interim financial statements Q3 2015, dated November 12, 2015, are included as appendix and incorporated herein by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| AEGON N.V. | ||||||
|
| ||||||
| (Registrant) | ||||||
| Date: November 12, 2015 | By | /s/ J.H.P.M. van Rossum | ||||
| J.H.P.M. van Rossum | ||||||
| Executive Vice President | ||||||
| Corporate Controller | ||||||
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| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Notes to the condensed consolidated interim financial statements |
7 | |||
| Unaudited | 1 |
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| 2 | Unaudited |
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| Unaudited | 3 |
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| 4 | Unaudited |
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1 For a breakdown of share capital please refer to note 17.
2 Issued capital and reserves attributable to equity holders of Aegon N.V.
| Unaudited | 5 |
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| 6 | Unaudited |
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Notes to the condensed consolidated interim financial statements
Amounts in EUR millions, unless otherwise stated
Aegon N.V., incorporated and domiciled in the Netherlands, is a public limited liability company organized under Dutch law and recorded in the Commercial Register of The Hague under number 27076669 and with its registered address at Aegonplein 50, 2591 TV, The Hague, the Netherlands. Aegon N.V. serves as the holding company for the Aegon Group and has listings of its common shares in Amsterdam and New York.
Aegon N.V. (or ‘the Company’) and its consolidated subsidiaries (‘Aegon’ or ‘the Group’) have life insurance and pensions operations in over twenty-five countries in the Americas, Europe and Asia and are also active in savings and asset management operations, accident and health insurance, general insurance and to a limited extent banking operations. Its headquarters are located in The Hague, the Netherlands. The Group employs approximately 28,000 people worldwide.
1. Basis of presentation
The condensed consolidated interim financial statements as at, and for the period ended, September 30, 2015, have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’, as adopted by the European Union (hereafter ‘IFRS’). They do 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 2014 consolidated financial statements of Aegon N.V. as included in Aegon’s Annual Report for 2014. Aegon’s Annual Report for 2014 is available on its website (aegon.com).
The condensed consolidated interim financial statements have been prepared in accordance with the historical cost convention as modified by the revaluation of investment properties and those financial instruments (including derivatives) and financial liabilities that have been measured at fair value. Certain amounts in prior periods may have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income, shareholders’ equity or earnings per share.
The condensed consolidated interim financial statements as at, and for the period ended, September 30, 2015, were approved by the Executive Board on November 11, 2015.
The condensed consolidated interim financial statements are presented in euro (EUR) and all values are rounded to the nearest million unless otherwise stated. The consequence is that the rounded amounts may not add up to the rounded total in all cases.
The published figures in these condensed consolidated interim financial statements are unaudited.
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 2014 consolidated financial statements.
New IFRS accounting standards effective
The following standards, interpretations, amendments to standards and interpretations became effective in 2015:
| t | IAS 19 Employee Benefits – Amendment Employee Contributions; |
| t | Annual improvements 2010-2012 Cycle; and |
| t | Annual improvements 2011-2013 Cycle. |
None of these revised standards and interpretations had a significant effect on the condensed consolidated interim financial statements as at and for the period ended September 30, 2015.
For a complete overview of IFRS standards, published before January 1, 2015, that will be applied in future years, and were not early adopted by the Group, please refer to Aegon’s Annual Report for 2014.
| Unaudited | 7 |
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Taxes
Taxes on income for the nine-month period, ending September 30, 2015, are accrued using the tax rate that would be applicable to expected total annual earnings.
Judgments and critical accounting estimates
Preparing the condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions, including the likelihood, timing or amount of future transactions or events, that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from the estimates made.
In preparing the condensed consolidated interim financial statements, significant judgments made by management in applying the Group’s accounting policies and the key sources of estimating uncertainty were not significantly different than those that were applied to the consolidated financial statements as at and for the year ended December 31, 2014.
Actuarial assumption updates
Assumptions are reviewed and updated periodically, typically in the third quarter, based on historical experience and observable market data, including market transactions such as acquisitions and reinsurance transactions.
During the third quarter of 2015, Aegon implemented assumption updates resulting in a net EUR 5 million gain to income before tax. Charges arising from assumption updates included in underlying earnings before tax amounted to EUR 96 million.
| t | A charge for actuarial assumption updates in the Americas Life & Protection business amounted to EUR 17 million, and was primarily related to updated mortality assumptions of active lives and updated lapse assumptions. |
| t | Actuarial assumption updates in the Americas Investments & Retirement business resulted in a charge of EUR 79 million and was primarily related to expense assumption updates related to fixed and variable annuity contracts. |
In fair value items a favorable amount of EUR 101 million has been recorded primarily reflecting an update of the risk free yield curve to determine Aegon’s liabilities for certain variable annuity contracts as well as economic scenario updates for both fixed and variable annuity contracts.
Exchange rates
Assets and liabilities are translated at the closing rates on the balance sheet date. Income, expenses and capital transactions (such as dividends) are translated at average exchange rates or at the prevailing rates on the transaction date, if more appropriate. The following exchange rates are applied for the condensed consolidated interim financial statements:
Closing exchange rates
|
|
USD
|
|
|
GBP
|
| |||||||||||
|
September 30, 2015 |
|
1
|
|
|
EUR
|
|
|
1.1163
|
|
|
0.7369
|
| ||||
|
December 31, 2014 |
|
1
|
|
|
EUR
|
|
|
1.2101
|
|
|
0.7760
|
|
Weighted average exchange rates
|
|
USD
|
|
|
GBP
|
| |||||||||||
|
Nine months ended September 30, 2015 |
|
1
|
|
|
EUR
|
|
|
1.1150
|
|
|
0.7272
|
| ||||
|
Nine months ended September 30, 2014 |
|
1
|
|
|
EUR
|
|
|
1.3554
|
|
|
0.8120
|
|
| 8 | Unaudited |
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3. Segment information
Aegon conducts its operations through five primary reporting segments:
| 1. | Aegon Americas: covers business units in the United States, Canada, Brazil and Mexico, including any of the units’ activities located outside these countries; |
| 2. | Aegon the Netherlands: covers businesses operating in the Netherlands; |
| 3. | Aegon UK: covers businesses operating in the United Kingdom; |
| 4. | New Markets: covers businesses operating in Central & Eastern Europe; Asia, Spain and Portugal, as well as Aegon’s variable annuities activities in Europe and Aegon Asset Management that are aggregated as one reportable segment due to their respective size; |
| 5. | Holding and other activities: includes financing, employee and other administrative expenses of holding companies. |
These segments are based on the business as presented in internal reports that are regularly reviewed by the Executive Board which is regarded as the chief operating decision maker.
Aegon’s segment information is prepared by consolidating on a proportionate basis Aegon’s joint ventures and associated companies.
Performance Measure
A performance measure of reporting segments utilized by the Company is underlying earnings before tax. Underlying earnings before tax reflects Aegon’s profit from underlying business operations and excludes components that relate to accounting mismatches that are dependent on market volatility or relate to events that are considered outside the normal course of business.
Aegon believes that its performance measure underlying earnings before tax provides meaningful information about the underlying results of Aegon’s business, including insight into the financial measures that Aegon’s senior management uses in managing the business. Among other things, Aegon’s senior management is compensated based in part on Aegon’s results against targets using underlying earnings before tax. While many other insurers in Aegon’s peer group present substantially similar performance measures, the performance measures presented in this document may nevertheless differ from the performance measures presented by other insurers. There is no standardized meaning to these measures under IFRS or any other recognized set of accounting standards.
The reconciliation from underlying earnings before tax to income before tax, being the most comparable IFRS measure, is presented in the tables in this note.
The items that are excluded from underlying earnings before tax as described further below are: fair value items, realized gain or losses on investments, impairment charges/reversals, other income or charges, run-off businesses and share in earnings of joint ventures and associates.
As of Q3 2015, management decided to change the measurement of underlying earnings before tax by including the impact of model updates as part of ‘Other income/(charges)’ rather than as part of underlying earnings before tax. The models are used to support calculations of our liabilities for insurance and investment contracts sold to policyholders and related assets. Model updates could result in either a strengthening of reserves or a release of reserves held to cover for insurance or investment contracts inforce and the related treatment of deferred acquisition costs or costs of value of business acquired. The reason for this change in measurement is that management believes that these model updates are expected to be non-recurring.
| Unaudited | 9 |
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As a result, presentation as part of ‘Other income/(charges)’ would provide better insight to users of Aegon’s financial statements in the actual performance from its underlying business operations. In Q3 2015 an amount of EUR (209) million has been recorded in ‘Other income/(charges)’. The impact of this change in measurement on full year 2014 would have been an increase in Aegon Group consolidated underlying earnings before tax of EUR 82 million and a decrease in ‘Other income/(charges)’ for the same amount for segment reporting purposes. The impact is split between the Americas (EUR 57 million) and New Markets (EUR 26 million). The presentation of the items in the IFRS income statement will remain unchanged and continue to be part of the line ‘Policyholder claims and benefits’.
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 before tax. 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.
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 before tax 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 before tax 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 before tax, 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 before tax and reported under fair value items.
Realized gains or losses on investments
Includes realized gains and losses on available-for-sale investments, mortgage loans and other loan portfolios.
Impairment charges/reversals
Impairment charges include impairments on available-for-sale debt securities, shares including the effect of deferred policyholder acquisition costs, mortgage loans and other loan portfolios at amortized cost, joint ventures and associates. Impairment reversals include reversals on available-for-sale debt securities.
| 10 | Unaudited |
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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. As of Q3 2015, the impact of model updates used to support calculations of our liabilities for insurance and investment contracts sold to policyholders and related assets are reported under this caption as well (refer to page 9).
Other charges may 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 interim financial statements, 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 results related to 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 the sale of the 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 before tax.
Share in earnings of joint ventures and associates
Earnings from Aegon’s joint ventures in the Netherlands, Mexico, Spain, Portugal, China and Japan and Aegon’s associates in India, Brazil, the Netherlands, United Kingdom, Mexico and France are reported on an underlying earnings before tax basis.
| Unaudited | 11 |
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3.1 Income statement
| EUR millions | Americas | The Netherlands |
United Kingdom |
New Markets | Holding and other activities |
Eliminations | Segment Total |
Joint |
Consolidated | |||||||||||||||||||||||||||
| Three months ended September 30, 2015 |
|
|||||||||||||||||||||||||||||||||||
| Underlying earnings before tax geographically |
243 | 135 | 27 | 69 | (41) | 2 | 436 | 24 | 460 | |||||||||||||||||||||||||||
| Fair value items |
(146) | (1) | 34 | 7 | 3 | - | (103) | (29) | (132) | |||||||||||||||||||||||||||
| Realized gains / (losses) on investments |
2 | 32 | 1 | 1 | - | - | 36 | (2) | 33 | |||||||||||||||||||||||||||
| Impairment charges |
(11) | (6) | - | (1) | - | - | (18) | - | (18) | |||||||||||||||||||||||||||
| Impairment reversals |
6 | 1 | - | - | - | - | 6 | - | 6 | |||||||||||||||||||||||||||
| Other income / (charges) |
(909) | - | 3 | (43) | - | - | (950) | - | (950) | |||||||||||||||||||||||||||
| Run-off businesses |
28 | - | - | - | - | - | 28 | - | 28 | |||||||||||||||||||||||||||
| Income / (loss) before tax |
(789) | 160 | 65 | 34 | (38) | 2 | (565) | (7) | (572) | |||||||||||||||||||||||||||
| Income tax (expense) / benefit |
73 | (34) | (4) | (8) | 13 | - | 41 | 7 | 48 | |||||||||||||||||||||||||||
| Net income / (loss) |
(716) | 126 | 62 | 26 | (25) | 2 | (524) | - | (524) | |||||||||||||||||||||||||||
| Inter-segment underlying earnings |
(51) | (14) | (19) | 83 | 1 | |||||||||||||||||||||||||||||||
| Revenues |
||||||||||||||||||||||||||||||||||||
| Life insurance gross premiums |
1,759 | 343 | 1,367 | 644 | 1 | (27) | 4,086 | (106) | 3,980 | |||||||||||||||||||||||||||
| Accident and health insurance |
571 | 32 | 12 | 51 | 1 | (1) | 666 | (1) | 664 | |||||||||||||||||||||||||||
| General insurance |
- | 102 | - | 59 | 1 | - | 163 | (19) | 144 | |||||||||||||||||||||||||||
| Total gross premiums |
2,330 | 477 | 1,378 | 754 | 3 | (28) | 4,915 | (126) | 4,789 | |||||||||||||||||||||||||||
| Investment income |
935 | 533 | 481 | 74 | 94 | (93) | 2,023 | (11) | 2,012 | |||||||||||||||||||||||||||
| Fee and commission income |
438 | 88 | 12 | 200 | - | (67) | 672 | (49) | 623 | |||||||||||||||||||||||||||
| Other revenues |
1 | - | - | (1) | 1 | - | - | 1 | 1 | |||||||||||||||||||||||||||
| Total revenues |
3,704 | 1,099 | 1,871 | 1,027 | 98 | (188) | 7,610 | (185) | 7,425 | |||||||||||||||||||||||||||
| Inter-segment revenues |
6 | 1 | - | 87 | 95 | |||||||||||||||||||||||||||||||
| EUR millions | Americas | The Netherlands |
United Kingdom |
New Markets | Holding and other activities |
Eliminations | Segment Total |
Joint |
Consolidated | |||||||||||||||||||||||||||
| Three months ended September 30, 2014 |
|
|||||||||||||||||||||||||||||||||||
| Underlying earnings before tax geographically |
134 | 127 | 28 | 40 | (37) | - | 291 | 4 | 295 | |||||||||||||||||||||||||||
| Fair value items |
(159) | (101) | - | - | (36) | - | (296) | (7) | (304) | |||||||||||||||||||||||||||
| Realized gains / (losses) on investments |
14 | 52 | 10 | 8 | - | - | 85 | (1) | 84 | |||||||||||||||||||||||||||
| Impairment charges |
(4) | (5) | - | (14) | - | - | (23) | - | (23) | |||||||||||||||||||||||||||
| Impairment reversals |
25 | 3 | - | - | - | - | 28 | - | 28 | |||||||||||||||||||||||||||
| Other income / (charges) |
(27) | (6) | (10) | 14 | (1) | - | (29) | - | (29) | |||||||||||||||||||||||||||
| Run-off businesses |
(31) | - | - | - | - | - | (31) | - | (31) | |||||||||||||||||||||||||||
| Income / (loss) before tax |
(48) | 70 | 27 | 48 | (74) | - | 23 | (4) | 19 | |||||||||||||||||||||||||||
| Income tax (expense) / benefit |
52 | (26) | (2) | (12) | 17 | - | 29 | 4 | 33 | |||||||||||||||||||||||||||
| Net income / (loss) |
4 | 44 | 25 | 35 | (57) | - | 52 | - | 52 | |||||||||||||||||||||||||||
| Inter-segment underlying earnings |
(44) | (14) | (15) | 69 | 4 | |||||||||||||||||||||||||||||||
| Revenues |
||||||||||||||||||||||||||||||||||||
| Life insurance gross premiums |
1,580 | 1,204 | 1,243 | 443 | - | (18) | 4,452 | (89) | 4,363 | |||||||||||||||||||||||||||
| Accident and health insurance |
485 | 34 | 14 | 37 | 1 | (1) | 570 | (1) | 569 | |||||||||||||||||||||||||||
| General insurance |
- | 107 | - | 52 | - | - | 160 | (16) | 144 | |||||||||||||||||||||||||||
| Total gross premiums |
2,065 | 1,345 | 1,257 | 533 | 2 | (19) | 5,181 | (105) | 5,076 | |||||||||||||||||||||||||||
| Investment income |
823 | 637 | 487 | 61 | 79 | (79) | 2,009 | (11) | 1,998 | |||||||||||||||||||||||||||
| Fee and commission income |
454 | 81 | 11 | 159 | - | (58) | 647 | (28) | 619 | |||||||||||||||||||||||||||
| Other revenues |
1 | - | - | - | 2 | - | 3 | - | 2 | |||||||||||||||||||||||||||
| Total revenues |
3,343 | 2,062 | 1,755 | 753 | 83 | (156) | 7,840 | (145) | 7,695 | |||||||||||||||||||||||||||
| Inter-segment revenues |
3 | - | - | 73 | 80 | |||||||||||||||||||||||||||||||
| 12 | Unaudited |
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| EUR millions | Americas | The Netherlands |
United Kingdom |
New Markets | Holding and other activities |
Eliminations | Segment Total |
Joint |
Consolidated | |||||||||||||||||||||||||||
| Nine months ended September 30, 2015 |
|
|||||||||||||||||||||||||||||||||||
| Underlying earnings before tax geographically |
891 | 402 | 100 | 183 | (123) | 2 | 1,453 | 27 | 1,480 | |||||||||||||||||||||||||||
| Fair value items |
(525) | 34 | 4 | (1) | (66) | - | (554) | (45) | (599) | |||||||||||||||||||||||||||
| Realized gains / (losses) on investments |
(52) | 273 | 57 | 10 | - | - | 288 | (7) | 281 | |||||||||||||||||||||||||||
| Impairment charges |
(32) | (17) | - | (2) | - | - | (50) | - | (50) | |||||||||||||||||||||||||||
| Impairment reversals |
32 | 3 | - | - | - | - | 35 | - | 35 | |||||||||||||||||||||||||||
| Other income / (charges) |
(909) | (22) | 13 | (43) | - | - | (961) | - | (961) | |||||||||||||||||||||||||||
| Run-off businesses |
38 | - | - | - | - | - | 38 | - | 38 | |||||||||||||||||||||||||||
| Income / (loss) before tax |
(558) | 674 | 174 | 148 | (190) | 2 | 249 | (25) | 224 | |||||||||||||||||||||||||||
| Income tax (expense) / benefit |
69 | (153) | (20) | (54) | 50 | - | (107) | 25 | (82) | |||||||||||||||||||||||||||
| Net income / (loss) |
(490) | 521 | 154 | 94 | (139) | 2 | 142 | - | 142 | |||||||||||||||||||||||||||
| Inter-segment underlying earnings |
(161) | (41) | (52) | 246 | 8 | |||||||||||||||||||||||||||||||
| Revenues |
||||||||||||||||||||||||||||||||||||
| Life insurance gross premiums |
5,202 | 1,757 | 4,257 | 2,016 | 3 | (78) | 13,156 | (325) | 12,831 | |||||||||||||||||||||||||||
| Accident and health insurance |
1,706 | 198 | 37 | 146 | 4 | (4) | 2,087 | (13) | 2,074 | |||||||||||||||||||||||||||
| General insurance |
- | 381 | - | 181 | 1 | - | 564 | (58) | 506 | |||||||||||||||||||||||||||
| Total gross premiums |
6,908 | 2,335 | 4,293 | 2,344 | 9 | (83) | 15,807 | (396) | 15,411 | |||||||||||||||||||||||||||
| Investment income |
2,760 | 1,719 | 1,715 | 215 | 286 | (285) | 6,410 | (38) | 6,372 | |||||||||||||||||||||||||||
| Fee and commission income |
1,287 | 261 | 33 | 603 | - | (205) | 1,979 | (149) | 1,831 | |||||||||||||||||||||||||||
| Other revenues |
8 | - | - | 3 | 2 | - | 14 | (4) | 10 | |||||||||||||||||||||||||||
| Total revenues |
10,964 | 4,315 | 6,042 | 3,166 | 297 | (573) | 24,210 | (587) | 23,624 | |||||||||||||||||||||||||||
| Inter-segment revenues |
18 | 2 | - | 263 | 290 | |||||||||||||||||||||||||||||||
| EUR millions | Americas | The Netherlands |
United Kingdom |
New Markets | Holding and other activities |
Eliminations | Segment Total |
Joint |
Consolidated | |||||||||||||||||||||||||||
| Nine months ended September 30, 2014 |
|
|||||||||||||||||||||||||||||||||||
| Underlying earnings before tax geographically |
767 | 386 | 86 | 163 | (100) | - | 1,303 | (4) | 1,299 | |||||||||||||||||||||||||||
| Fair value items |
(326) | (268) | (16) | 8 | (73) | - | (675) | (2) | (677) | |||||||||||||||||||||||||||
| Realized gains / (losses) on investments |
74 | 183 | 123 | 12 | - | - | 392 | (2) | 390 | |||||||||||||||||||||||||||
| Impairment charges |
(17) | (14) | - | (38) | - | - | (69) | - | (69) | |||||||||||||||||||||||||||
| Impairment reversals |
56 | 7 | - | - | - | - | 63 | - | 63 | |||||||||||||||||||||||||||
| Other income / (charges) |
(35) | (14) | (12) | 13 | (2) | - | (49) | (1) | (50) | |||||||||||||||||||||||||||
| Run-off businesses |
(18) | - | - | - | - | - | (18) | - | (18) | |||||||||||||||||||||||||||
| Income / (loss) before tax |
502 | 281 | 181 | 157 | (174) | - | 947 | (9) | 938 | |||||||||||||||||||||||||||
| Income tax (expense) / benefit |
(62) | (62) | (38) | (44) | 46 | - | (160) | 9 | (151) | |||||||||||||||||||||||||||
| Net income / (loss) |
440 | 219 | 143 | 113 | (128) | - | 787 | - | 787 | |||||||||||||||||||||||||||
| Inter-segment underlying earnings |
(128) | (43) | (43) | 199 | 15 | |||||||||||||||||||||||||||||||
| Revenues |
||||||||||||||||||||||||||||||||||||
| Life insurance gross premiums |
4,606 | 3,243 | 3,634 | 1,302 | 1 | (54) | 12,732 | (262) | 12,470 | |||||||||||||||||||||||||||
| Accident and health insurance |
1,356 | 203 | 43 | 128 | 4 | (4) | 1,730 | (10) | 1,720 | |||||||||||||||||||||||||||
| General insurance |
- | 397 | - | 167 | - | - | 564 | (53) | 511 | |||||||||||||||||||||||||||
| Total gross premiums |
5,962 | 3,843 | 3,677 | 1,596 | 5 | (58) | 15,026 | (325) | 14,701 | |||||||||||||||||||||||||||
| Investment income |
2,424 | 1,957 | 1,560 | 175 | 237 | (235) | 6,118 | (32) | 6,086 | |||||||||||||||||||||||||||
| Fee and commission income |
1,095 | 238 | 31 | 449 | - | (171) | 1,642 | (70) | 1,572 | |||||||||||||||||||||||||||
| Other revenues |
1 | - | - | 2 | 4 | - | 7 | (1) | 5 | |||||||||||||||||||||||||||
| Total revenues |
9,482 | 6,038 | 5,268 | 2,221 | 246 | (463) | 22,792 | (428) | 22,364 | |||||||||||||||||||||||||||
| Inter-segment revenues |
11 | - | - | 213 | 239 | |||||||||||||||||||||||||||||||
| Unaudited | 13 |
Table of Contents
3.2 Investments geographically
Amounts included in the tables on investments geographically are presented on an IFRS basis.
| EUR millions (unless otherwise stated) | ||||||||||||||||||||||||||||||||||||
| Americas USD millions |
United Kingdom GBP millions |
September 30, 2015 | Americas | The Netherlands |
United Kingdom |
New Markets |
Holding & other activities |
Eliminations | Total EUR |
|||||||||||||||||||||||||||
| Investments | ||||||||||||||||||||||||||||||||||||
| 683 | 108 | Shares | 612 | 161 | 147 | 46 | 112 | - | 1,077 | |||||||||||||||||||||||||||
| 73,153 | 9,710 | Debt securities | 65,531 | 23,839 | 13,177 | 5,361 | - | - | 107,908 | |||||||||||||||||||||||||||
| 10,748 | - | Loans | 9,628 | 28,040 | - | 446 | 86 | - | 38,201 | |||||||||||||||||||||||||||
| 12,124 | 218 | Other financial assets | 10,861 | 340 | 296 | 35 | 148 | - | 11,680 | |||||||||||||||||||||||||||
| 905 | - | Investments in real estate | 811 | 1,150 | - | 2 | - | - | 1,963 | |||||||||||||||||||||||||||
| 97,613 | 10,036 | Investments general account |
87,444 | 53,530 | 13,619 | 5,891 | 346 | - | 160,830 | |||||||||||||||||||||||||||
| - | 12,283 | Shares | - | 8,648 | 16,669 | 258 | - | (8 | ) | 25,567 | ||||||||||||||||||||||||||
| 5,543 | 9,151 | Debt securities | 4,965 | 17,454 | 12,419 | 208 | - | - | 35,046 | |||||||||||||||||||||||||||
| 102,009 | 22,018 | Unconsolidated investment funds |
91,381 | - | 29,879 | 6,484 | - | - | 127,744 | |||||||||||||||||||||||||||
| 23 | 2,683 | Other financial assets | 21 | 368 | 3,641 | 19 | - | - | 4,049 | |||||||||||||||||||||||||||
| - | 852 | Investments in real estate | - | - | 1,156 | - | - | - | 1,156 | |||||||||||||||||||||||||||
| 107,575 | 46,987 | Investments for account of policyholders |
96,368 | 26,470 | 63,763 | 6,970 | - | (8 | ) | 193,562 | ||||||||||||||||||||||||||
| 205,188 | 57,023 | Investments on balance sheet |
183,811 | 80,000 | 77,383 | 12,860 | 346 | (8 | ) | 354,392 | ||||||||||||||||||||||||||
| 169,093 | 552 | Off balance sheet investments third parties |
151,476 | 863 | 749 | 127,977 | - | - | 281,066 | |||||||||||||||||||||||||||
| 374,282 | 57,575 | Total revenue generating investments |
335,288 | 80,864 | 78,132 | 140,837 | 346 | (8 | ) | 635,458 | ||||||||||||||||||||||||||
| Investments | ||||||||||||||||||||||||||||||||||||
| 81,255 | 9,828 | Available-for-sale | 72,790 | 22,951 | 13,336 | 5,367 | 18 | - | 114,462 | |||||||||||||||||||||||||||
| 10,748 | - | Loans | 9,628 | 28,040 | - | 446 | 86 | - | 38,201 | |||||||||||||||||||||||||||
| 112,280 | 46,344 | Financial assets at fair value through profit or loss |
100,582 | 27,859 | 62,890 | 7,044 | 242 | (8 | ) | 198,610 | ||||||||||||||||||||||||||
| 905 | 852 | Investments in real estate | 811 | 1,150 | 1,156 | 2 | - | - | 3,119 | |||||||||||||||||||||||||||
| 205,188 | 57,023 | Total investments on balance sheet |
183,811 | 80,000 | 77,383 | 12,860 | 346 | (8 | ) | 354,392 | ||||||||||||||||||||||||||
| 9 | - | Investments in joint ventures |
8 | 834 | - | 734 | 2 | - | 1,578 | |||||||||||||||||||||||||||
| 81 | 6 | Investments in associates | 72 | 21 | 9 | 131 | - | - | 233 | |||||||||||||||||||||||||||
| 29,753 | 4,906 | Other assets | 26,653 | 27,593 | 6,658 | 4,040 | 35,201 | (35,460 | ) | 64,686 | ||||||||||||||||||||||||||
| 235,031 | 61,936 | Consolidated total assets |
210,545 | 108,448 | 84,049 | 17,766 | 35,550 | (35,468 | ) | 420,890 | ||||||||||||||||||||||||||
| EUR millions (unless otherwise stated) | ||||||||||||||||||||||||||||||||||||
| Americas USD millions |
United Kingdom GBP millions |
December 31, 2014 | Americas | The Netherlands |
United Kingdom |
New Markets |
Holding & other activities |
Eliminations | Total EUR |
|||||||||||||||||||||||||||
| Investments | ||||||||||||||||||||||||||||||||||||
| 770 | 150 | Shares | 636 | 161 | 193 | 28 | 105 | (1 | ) | 1,122 | ||||||||||||||||||||||||||
| 76,393 | 9,832 | Debt securities | 63,130 | 23,250 | 12,670 | 4,274 | - | - | 103,324 | |||||||||||||||||||||||||||
| 11,117 | - | Loans | 9,187 | 27,052 | - | 487 | 11 | - | 36,738 | |||||||||||||||||||||||||||
| 11,914 | 267 | Other financial assets | 9,845 | 366 | 344 | 16 | 107 | - | 10,678 | |||||||||||||||||||||||||||
| 873 | - | Investments in real estate | 721 | 1,069 | - | 2 | - | - | 1,792 | |||||||||||||||||||||||||||
| 101,067 | 10,249 | Investments general account |
83,519 | 51,898 | 13,208 | 4,806 | 224 | (1 | ) | 153,653 | ||||||||||||||||||||||||||
| - | 13,287 | Shares | - | 9,487 | 17,122 | 420 | - | (10 | ) | 27,019 | ||||||||||||||||||||||||||
| 5,549 | 10,026 | Debt securities | 4,585 | 19,320 | 12,920 | 244 | - | - | 37,070 | |||||||||||||||||||||||||||
| 104,704 | 22,769 | Unconsolidated investment funds |
86,525 | - | 29,341 | 6,293 | - | - | 122,159 | |||||||||||||||||||||||||||
| 34 | 2,851 | Other financial assets | 28 | 401 | 3,674 | 13 | - | - | 4,117 | |||||||||||||||||||||||||||
| - | 855 | Investments in real estate | - | - | 1,101 | - | - | - | 1,101 | |||||||||||||||||||||||||||
| 110,287 | 49,788 | Investments for account of policyholders |
91,138 | 29,209 | 64,159 | 6,971 | - | (10 | ) | 191,467 | ||||||||||||||||||||||||||
| 211,353 | 60,037 | Investments on balance sheet |
174,658 | 81,106 | 77,367 | 11,777 | 224 | (11 | ) | 345,121 | ||||||||||||||||||||||||||
| 168,561 | 443 | Off balance sheet investments third parties |
139,295 | 868 | 570 | 72,474 | - | - | 213,208 | |||||||||||||||||||||||||||
| 379,914 | 60,479 | Total revenue generating investments |
313,953 | 81,974 | 77,937 | 84,251 | 224 | (11 | ) | 558,328 | ||||||||||||||||||||||||||
| Investments | ||||||||||||||||||||||||||||||||||||
| 84,527 | 9,998 | Available-for-sale | 69,851 | 23,197 | 12,884 | 4,284 | 12 | - | 110,229 | |||||||||||||||||||||||||||
| 11,117 | - | Loans | 9,187 | 27,052 | - | 487 | 11 | - | 36,738 | |||||||||||||||||||||||||||
| 114,836 | 49,184 | Financial assets at fair value through profit or loss |
94,898 | 29,788 | 63,381 | 7,005 | 200 | (11 | ) | 195,261 | ||||||||||||||||||||||||||
| 873 | 855 | Investments in real estate | 721 | 1,069 | 1,101 | 2 | - | - | 2,893 | |||||||||||||||||||||||||||
| 211,353 | 60,037 | Total investments on balance sheet |
174,658 | 81,106 | 77,367 | 11,777 | 224 | (11 | ) | 345,121 | ||||||||||||||||||||||||||
| 11 | - | Investments in joint ventures |
9 | 789 | - | 670 | 1 | - | 1,468 | |||||||||||||||||||||||||||
| 110 | 18 | Investments in associates | 91 | 19 | 24 | 6 | - | - | 140 | |||||||||||||||||||||||||||
| 39,994 | 4,740 | Other assets | 33,050 | 34,737 | 6,108 | 4,067 | 36,785 | (36,574 | ) | 78,172 | ||||||||||||||||||||||||||
| 251,468 | 64,795 | Consolidated total assets | 207,808 | 116,652 | 83,498 | 16,519 | 37,010 | (36,586 | ) | 424,902 | ||||||||||||||||||||||||||
| 14 | Unaudited |
Table of Contents
4. Premium income and premiums paid to reinsurers
| EUR millions |
Q3 2015 | Q3 2014 | YTD 2015 | YTD 2014 | ||||||||||||
| Gross |
||||||||||||||||
| Life |
3,980 | 4,363 | 12,831 | 12,470 | ||||||||||||
| Non-Life |
808 | 713 | 2,580 | 2,231 | ||||||||||||
| Total |
4,789 | 5,076 | 15,411 | 14,701 | ||||||||||||
| Reinsurance 1 |
||||||||||||||||
| Life |
663 | 571 | 1,960 | 1,890 | ||||||||||||
| Non-Life |
72 | 75 | 211 | 227 | ||||||||||||
| Total |
735 | 646 | 2,171 | 2,117 | ||||||||||||
1 Premiums paid to reinsurers are recorded within Benefits and expenses in the income statement.
5. Investment income
| EUR millions |
Q3 2015 | Q3 2014 | YTD 2015 | YTD 2014 | ||||||||||||
| Interest income |
1,787 | 1,673 | 5,325 | 5,052 | ||||||||||||
| Dividend income |
187 | 298 | 940 | 939 | ||||||||||||
| Rental income |
38 | 27 | 106 | 94 | ||||||||||||
| Total investment income |
2,012 | 1,998 | 6,372 | 6,086 | ||||||||||||
| Investment income related to general account |
1,547 | 1,426 | 4,579 | 4,226 | ||||||||||||
| Investment income for account of policyholders |
465 | 572 | 1,793 | 1,859 | ||||||||||||
| Total |
2,012 | 1,998 | 6,372 | 6,086 | ||||||||||||
6. Results from financial transactions
| EUR millions |
Q3 2015 | Q3 2014 | YTD 2015 | YTD 2014 | ||||||||||||
| Net fair value change of general account financial investments at FVTPL other than derivatives |
(99) | 35 | (51) | 196 | ||||||||||||
| Realized gains /(losses) on financial investments |
22 | 86 | 290 | 394 | ||||||||||||
| Gains /(losses) on investments in real estate |
99 | (5) | 116 | (19) | ||||||||||||
| Net fair value change of derivatives |
623 | 342 | 6 | 678 | ||||||||||||
| Net fair value change on for account of policyholder financial assets at FVTPL |
(8,367) | 562 | (5,356) | 6,430 | ||||||||||||
| Net fair value change on investments in real estate for account of policyholders |
38 | 14 | 51 | 42 | ||||||||||||
| Net foreign currency gains /(losses) |
(3) | (6) | (31) | (18) | ||||||||||||
| Net fair value change on borrowings and other financial liabilities |
(6) | 11 | 6 | 7 | ||||||||||||
| Realized gains /(losses) on repurchased debt |
- | (1) | 1 | 2 | ||||||||||||
| Total |
(7,693) | 1,038 | (4,968) | 7,710 | ||||||||||||
The decrease of the net fair value change on for account of policyholder financial assets at FVTPL in Q3 2015 compared to Q3 2014 is mainly driven by interest rates and equity markets movements. Net fair value change on for accounts of policyholder financial assets at FVTPL is offset by amounts in the Claims and benefits line reported in note 8 - Benefits and expenses.
7. Other income
Other income of EUR 16 million in the third quarter 2015 relates to the sale of the 25.1% share in platform provider and discretionary fund manager Seven Investment Management (7IM) and the sale of Clark Consulting. These transactions have led to a book gain of EUR 16 million. Refer to note 21 Acquisitions / divestments.