Based on industry-wide recommendations of the Dutch Ombudsman for Financial Services, Aegon will reduce the costs of its unit linked insurance policies sold in the Netherlands.
In recent years, Aegon has made substantial improvements by reducing costs and premiums to unit linked products. The value of these improvements total EUR 380 million pre-tax. Aegon will implement further product improvements that have a value of EUR 140 million before tax. This additional amount will be reflected in Aegon’s profit and loss statement over the remainder of the life of affected policies. As a result of these measures, costs of unit linked insurance policies sold by Aegon in the Netherlands will be consistent with the recommendations of the Ombudsman and a recent settlement within the industry.
Over 75% of Aegon’s unit linked insurance customers have benefitted from previous product improvements. Currently, more than 70% of all customers are charged less than 3% of costs. Aegon’s unit linked portfolio consists of 1.3 million policies, of which 50% have a guaranteed minimum return. Aegon has previously provisioned EUR 255 million for these guarantees.