Aegon N.V. today released its 2016 Annual Report and will file its Annual Report on Form 20 F with the United States Securities and Exchange Commission (SEC).
The Review explains how Aegon creates and shares value for its stakeholders by featuring customers, employees, investors, and local communities. It highlights seven material topics affecting Aegon's business, including aging and changing demographics, the impact of new technologies, increased regulation, and economic and financial uncertainty.
The Review also includes an interview with Alex Wynaendts, Aegon's CEO, in which he reflects on the significant progress being made towards Aegon's 2018 targets, including accelerating the pace of change to become a more digital, sustainable and customer-centric company.
Rob Routs, Chairman of Aegon's Supervisory Board, in his interview focuses on changes in the composition of the Management Board and the role of the Supervisory Board in setting Aegon's strategy.
Solvency II ratio
The Annual Report contains an updated estimate for the Group Solvency II ratio of 157% at year-end 2016, as a result of a change in the calculation of the risk margin in the Netherlands.
For the year-end 2016 position management decided to add a risk margin for expense inflation risk, leading to a 2%-points downward adjustment of the Group Solvency II ratio compared with the estimate published on February 17, 2017.
Despite the fact that the best estimate expense inflation assumptions used by Aegon the Netherlands in its technical provisions are market consistent and that inflation risk is economically hedgeable, management decided to be prudent and follow a strict legal interpretation of the regulation. Management is fully committed to increase the Solvency II ratio of Aegon the Netherlands through a range of management actions.
The Solvency II ratios as disclosed in the 2016 Annual Report represent Aegon's estimates, and are still subject to final interpretations of Solvency II regulations and regulatory review. More detailed information on the Solvency II ratios of Aegon's operating units and the group will be available in the Solvency and Financial Condition Reports (SFCRs) which will be published in the coming months.
Digital and printed versions
Digital copies of Aegon's 2016 Annual Report, 2016 Annual Report on Form 20-F and 2016 Review are available at aegon.com/reports. A hard copy of the Annual Report, including the audited financial statements, can be ordered free of charge here.
Other documents relating to Aegon's Annual General Meeting of Shareholders, including the agenda, will be available online from April 7, 2017.