Aegon has completed a second innovative capital markets transaction to reduce its risk
from future improvements in longevity in the Netherlands. The transaction is the latest
step in Aegon's strategy to open new capital markets outlets to lay off longevity risk and
further strengthens its leadership in the Dutch pension market. The impact on Aegon's
earnings is limited as this transaction was done at an attractive cost of capital.
The transaction has a maturity of 20 years with a commutation covering exposures that
run longer than 20 years. It covers underlying longevity reserves in the Netherlands of
EUR 1.4 billion. The transaction is the second undertaken by Aegon to reduce longevity
risk in Aegon's pension business in the Netherlands, following a longevity hedge on EUR 12
billion of reserves completed in January 2012. Aegon will continue to explore further
opportunities to manage its Dutch longevity risk efficiently.
Aegon's partners in the execution of this transaction are Societe Generale in the role
of intermediary and Risk Management Solutions as modelling agent. The risk is assumed by
third-party investors and reinsurers including SCOR.
ABOUT AEGON
As an international insurance, pensions and asset management company based in The Hague,
Aegon has businesses in over twenty markets in the Americas, Europe and Asia. Aegon
companies employ over 23,000 people and have millions of customers across the globe.
Further information: aegon.com [http://www.aegon.com ].
News releases, financial calendar and other corporate publications can also be found
in Aegon's investor and media app.
DISCLAIMER
Forward-looking statements
The statements contained in this document that are not historical facts are
forward-looking statements as defined in the US Private Securities Litigation Reform Act
of 1995. The following are words that identify such forward-looking statements: aim,
believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on,
plan, continue, want, forecast, goal, should, would, is confident, will, and similar
expressions as they relate to Aegon. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are difficult to
predict. Aegon undertakes no obligation to publicly update or revise any forward-looking
statements. Readers are cautioned not to place undue reliance on these forward-looking
statements, which merely reflect company expectations at the time of writing. Actual
results may differ materially from expectations conveyed in forward-looking statements due
to changes caused by various risks and uncertainties. Such risks and uncertainties include
but are not limited to the following:
<pre>
- Changes in general economic conditions, particularly in the United States,
the Netherlands and the United Kingdom;
- Changes in the performance of financial markets, including emerging markets,
such as with regard to:
- The frequency and severity of defaults by issuers in Aegon's fixed income
investment portfolios;
- The effects of corporate bankruptcies and/or accounting restatements on the
financial markets and the resulting decline in the value of equity and debt securities
Aegon holds; and
- The effects of declining creditworthiness of certain private sector securities
and the resulting decline in the value of sovereign exposure that Aegon holds;
- Changes in the performance of Aegon's investment portfolio and decline in
ratings of Aegon's counterparties;
- Consequences of a potential (partial) break-up of the euro;
- The frequency and severity of insured loss events;
- Changes affecting longevity, mortality, morbidity, persistence and other
factors that may impact the profitability of Aegon's insurance products;
- Reinsurers to whom Aegon has ceded significant underwriting risks may fail to
meet their obligations;
- Changes affecting interest rate levels and continuing low or rapidly changing
interest rate levels;
- Changes affecting currency exchange rates, in particular the EUR/USD and
EUR/GBP exchange rates;
- Changes in the availability of, and costs associated with, liquidity sources
such as bank and capital markets funding, as well as conditions in the credit markets
in general such as changes in borrower and counterparty creditworthiness;
- Increasing levels of competition in the United States, the Netherlands, the
United Kingdom and emerging markets;
- Changes in laws and regulations, particularly those affecting Aegon's
operations, ability to hire and retain key personnel, the products Aegon sells, and
the attractiveness of certain products to its consumers;
- Regulatory changes relating to the insurance industry in the jurisdictions in
which Aegon operates;
- Changes in customer behavior and public opinion in general related to, among
other things, the type of products also Aegon sells, including legal, regulatory or
commercial necessity to meet changing customer expectations;
- Acts of God, acts of terrorism, acts of war and pandemics;
- Changes in the policies of central banks and/or governments;
- Lowering of one or more of Aegon's debt ratings issued by recognized rating
organizations and the adverse impact such action may have on Aegon's ability to raise
capital and on its liquidity and financial condition;
- Lowering of one or more of insurer financial strength ratings of Aegon's
insurance subsidiaries and the adverse impact such action may have on the premium
writings, policy retention, profitability and liquidity of its insurance subsidiaries;
- The effect of the European Union's Solvency II requirements and other
regulations in other jurisdictions affecting the capital Aegon is required to
maintain;
- Litigation or regulatory action that could require Aegon to pay significant
damages or change the way Aegon does business;
- As Aegon's operations support complex transactions and are highly dependent on
the proper functioning of information technology, a computer system failure or
security breach may disrupt Aegon's business, damage its reputation and adversely
affect its results of operations, financial condition and cash flows;
- Customer responsiveness to both new products and distribution channels;
- Competitive, legal, regulatory, or tax changes that affect profitability, the
distribution cost of or demand for Aegon's products;
- Changes in accounting regulations and policies or a change by Aegon in
applying such regulations and policies, voluntarily or otherwise, may affect Aegon's
reported results and shareholders' equity;
- The impact of acquisitions and divestitures, restructurings, product
withdrawals and other unusual items, including Aegon's ability to integrate
acquisitions and to obtain the anticipated results and synergies from acquisitions;
- Catastrophic events, either manmade or by nature, could result in material
losses and significantly interrupt Aegon's business; and
- Aegon's failure to achieve anticipated levels of earnings or operational
efficiencies as well as other cost saving initiatives.
</pre> Further details of potential risks and uncertainties affecting Aegon are described in
its filings with the Netherlands Authority for the Financial Markets and the US Securities
and Exchange Commission, including the Annual Report. These forward-looking statements
speak only as of the date of this document. Except as required by any applicable law or
regulation, Aegon expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements contained herein to reflect any
change in Aegon's expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
<pre>
Media relations
Robin Boon
+31-(0)70-344-8956
[email protected]
Investor relations
Willem van den Berg
+31-(0)70-344-8305
[email protected]
</pre>
The content and accuracy of news releases published on this site and/or
distributed by PR Newswire or its partners are the sole responsibility of the
originating company or organisation. Whilst every effort is made to ensure the
accuracy of our services, such releases are not actively monitored or reviewed
by PR Newswire or its partners and under no circumstances shall PR Newswire or
its partners be liable for any loss or damage resulting from the use of such
information. All information should be checked prior to publication.
Share this article