Capital & liquidity

In line with its risk tolerance, Aegon's goal is to promote strong and stable capital adequacy levels for its businesses, and to maintain adequate liquidity to ensure we are able to meet our obligations.

Risk tolerance is an important element of Aegon's Enterprise Risk Management Framework, and focuses on financial strength, continuity, the steering of the risk balance and the desired risk culture.

Guiding principles

Aegon follows a number of guiding principles that determine its approach to capital and liquidity management:

  • To promote strong capital adequacy in Aegon's businesses and operating units;
  • To manage and allocate capital efficiently in support of the strategy and in line with its risk tolerance;
  • To maintain an efficient capital structure with an emphasis on optimizing Aegon's cost of capital;
  • To ensure sufficient liquidity by enforcing stringent liquidity risk policies for both business units and the holding; and
  • To maintain continued access to international capital markets on competitive terms. Aegon believes these guiding principles together strengthen the Company's ability to withstand adverse market conditions, enhance its financial flexibility and serve the long-term interests of both the Company and its stakeholders.


Aegon's Corporate Treasury department manages and coordinates capital and liquidity management strategies and processes. As such, the department is responsible for managing the capitalization of the Aegon Group and the holding company in line with Aegon's Capital Management Policy. The capitalization levels are discussed and approved by Aegon's Management Board.

Liquidity management

Liquidity management is a fundamental building block of Aegon's overall financial planning and capital allocation processes. Aegon aims to have sufficient liquidity to meet cash demands even under extreme conditions.

The Company's liquidity risk policy sets guidelines for its operating companies and the holding in order achieve a prudent liquidity profile. Liquidity is coordinated centrally and managed both at Aegon N.V. and at the business unit level.

Aegon maintains a liquidity policy that requires all business units to project their sources and uses of liquidity over a two-year period under normal and severe business and market scenarios. This policy ensures that liquidity is measured and managed consistently across the Company, and that liquidity stress management plans are in place.

Aegon's liquidity position

On December 31, 2015, Aegon held a balance of EUR 1.4 billion in excess capital at group level, compared with EUR 1.2 billion on December 31, 2014, an increase that reflects the net impact of dividends from subsidiaries, capital injections in subsidiaries, divestments, acquisitions, deleveraging initiatives, holding expenses and capital returns to shareholders.

Aegon's liquidity is invested in accordance with the Company's internal risk management policies. Aegon believes its working capital, backed by its external funding programs and facilities, is ample for the Company's present requirements.

Further information

For further details about capital and liquidity, see pages 89-91 of our 2015 Annual Report.

updated July 14, 2016

Aegon Financial Ratings

Fitch upgrades outlook to Stable


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