Changing capital requirements

As per the beginning of 2016, the rules in Europe regarding capital requirements for insurers have changed. This is the biggest change since 1973, when Solvency I was introduced.

What's the issue?

These new rules, known as Solvency II, aim to enhance consumer protection by aligning the amount of capital an insurer needs to hold with its risk profile, and should make it less likely that an insurer will fail in meeting its obligations to its customers.

What are the opportunities and what are the risks?

Aegon supported the move to Solvency II. Applied effectively, we believe the new rules lead to better risk management, governance and transparency within the industry, which ultimately protects customers.

What are we doing about it?

We comply with and have implemented Solvency II requirements. At the start of 2016, we had an estimated Group solvency ratio of approximately 160%, which is at the top end of our target range.