Share buyback program

A buyback – also known as share repurchase – is when a company buys its own shares, lowering the number of its shares traded in the market. View details of current and previous share buybacks.

Latest 

Neutralization of stock dividend

Shareholders were given the opportunity to choose between receiving the 2018 interim dividend of EUR 0.14 per common share in cash or in stock. The stock dividend and the cash dividend are approximately equal in value.

44% of shareholders elected to receive the interim dividend in stock. As a result, Aegon will repurchase 24,133,950 common shares to neutralize the dilutive effect of the 2018 interim stock dividend. These shares will be held as treasury shares and will be used to pay future stock dividends.

Aegon has committed itself to repurchasing the common shares by engaging a third party to execute the transactions on its behalf. The repurchase of shares will commence on October 1, 2018, and is expected to be completed on or before November 9, 2018. The common shares will be repurchased at a maximum of the average of the daily volume-weighted average prices during the repurchase period.

A weekly summary of the transactions is provided below. Further details are available in the Daily Overview by Exchange.

Weekly overview Aegon Share Buy Back for Neutralization of 2018 Interim Dividend

Start End Number of Shares Total amount (EUR) Average price (EUR)
Mon, October 1, 2018 Fri, October 5, 2018 4,260,000 24,067,573.82 5.6497
Mon, October 8, 2018 Fri, October 12, 2018 4,423,458 24,587,244.67 5.5584
Mon, October 15, 2018 Fri, October, 19, 2018 4,376,022 23,226,935.76 5.3078
Mon, October 22, 2018 Fri, October 26, 2018 5,291,829 27,868,273.13 5.2663
Mon, October 29, 2018 Fri, November 2, 2018 2,891,501 15,506,360.42 5.3627
Mon, November 5, 2018 Fri, November 9, 2018 2,891,140 15,871,448.53 5.4897
Total   24,133,950 131,127,836.33 5.4333
Percentage completed     100.00%  

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Previous 

Neutralization of stock dividend

Shareholders were given the opportunity to choose between receiving the 2017 final dividend of EUR 0.14 per common share in cash or in stock.

42% of shareholders elected to receive the final 2017 dividend in stock. As a result, Aegon will repurchase 21,954,140 common shares to neutralize the dilutive effect of the 2017 final dividend paid in shares. These shares will be held as treasury shares, and will be used to pay future stock dividends.

Aegon has committed itself to repurchasing the common shares by engaging a third party to execute the transactions on its behalf. The transactions will commence on July 2, 2018, and are expected to be completed on or before August 10, 2018. The common shares will be repurchased at a maximum of the average of the daily volume-weighted average prices during the repurchase period. 

A weekly summary of the transactions is provided below. Further details are available in the Daily Overview by Exchange .

Weekly Report - Aegon share buyback

for neutralization of 2017 Final Dividend

 Start  End  Number of Shares Total Amount (EUR) Average Price (EUR) 

Monday, 
02 July 2018

Friday, 
06 July 2018
 3,844,780  19,777,188.60  5.1439
Monday,
09 July 2018
Friday,
13 July 2018
 3,819,325  19,717,190.85  5.1625
Monday,
16 July 2018
Friday,
20 July 2018
 3,729,445  19,667,926.81  5.2737
Monday,
23 July 2018
Friday,
27 July 2018
 3,296,549  17,832,059.28 5.4093 
Monday,
30 July 2018
Friday, 03 August 2018 3,815, 498  21,220,251.07 5.5616 
Monday,
06 August 2018
Friday,10 August 2018  3,448,543  18,953,457.49  5.4961
         
Total   21,954,140 117,168,074.10 5.3369
Percentage (%) completed     100.00%  

Neutralization of stock dividend

Aegon has completed the repurchase of 51,864,626 common shares to neutralize the dilutive effect of the 2016 final and 2017 interim dividends. These shares will be held as treasury shares and will be used to pay future stock dividends.

Aegon repurchased common shares by engaging a financial intermediary to execute the transactions on its behalf.

These transactions commenced on October 2, 2017, and were completed on December 15, 2017. The common shares were repurchased at a maximum of the daily volume-weighted average price.

A weekly summary of the transactions is provided below. Further details are available in the Daily Overview by Exchange (pdf).

Weekly Report

Period (2017) Number of Shares Total Amount (EUR) Average Price (EUR)
October 2-7 4,770,000 23,069,123 4.8363
October  9-13 4,074,165 19,607,192 4.8126
October 16-20 4,199,111 20,891,941 4.9753
October 23-27 4,600,000 23,399,508 5.0868
October 30-Nov. 3 3,754,670 19,202,392 5.1143
November 6-10 5,928,233 30,891,406 5.2109
November 13-17 6,005,000 30,810,911 5.1309
November 20-24 5,040,000 25,844,420 5.1279
November 27-December 1 5,605,666 29,102,258 5.1916
December 4-8 5,120,000 26,778,821 5.2302
 December  11-15 2,767,781 14,650,933 5.2934
Total 51,864,626 264,248,905 5.0950
      100%  completed

Neutralization of stock dividend

Aegon has completed the repurchase of 30,765,224 common shares to neutralize the dilutive effect of the 2016 interim dividend.

These shares will be held as treasury shares and will be used to pay future stock dividends.

Aegon repurchased common shares by engaging a financial intermediary to execute the transactions on its behalf.

These transactions commenced on October 3, 2016, and were completed on November 11, 2016. The common shares were repurchased at a maximum of the daily volume-weighted average price.

A weekly summary of the transactions is provided below. 

Weekly Report

Period (2016) Number of Shares Total Amount (EUR) Average Price (EUR)
October 3-8 5,660,259 20,346,790 3.5947
October 10-14 5,522,071 20,473,026 3.7075
October 17-21 5,047,742 19,207,677 3.8052
October 24-28 4,478,432 17,727,718 3.9585
October 31-November 4 6,361,585 24,542,336 3.8579
November 7-11 3,695,135 15,860,856 4.2924
Total
30,765,224 118,158,402 3.8406
      100%  completed

Aegon repurchased EUR 400 million worth of common shares in 2016, of which a first tranche of EUR 200 million was completed on March 31, 2016. The second tranche of EUR 200 million was completed on May 19, 2016. In total, Aegon repurchased 42 million shares at an average repurchase price of EUR 4.76 per share.

This buyback was related to a transaction we carried out with Association Aegon (Vereniging Aegon), our largest shareholder. In 2013, they exchanged €2.1 billion preferred shares for a mix of cash and shares worth €1.1 billion. This transaction helped simplify Aegon's capital structure and allowed the Association to substantially reduce its debt. The impact on other shareholders was limited to a minor dilution of their ownership from the issuance of shares. We therefore bought back shares to offset the dilutive effect of this transaction.

At the Annual General Meeting on May 20, 2016, shareholders approved the cancelation of all common shares repurchased as part of this program.

The shares have been repurchased at or below the daily volume-weighted average price. An overview of the transactions on a weekly basis can be found below.

Weekly Report (Tranche 2 - EUR 200m)

Period (2016)  Number of Shares  Total Amount (EUR) *Average Price (EUR) 
April 1  1,070,000  5,058,289  4.7274
April 4-8 4,769,529 22,266,664 4.6685
April 11-15 4,210,000 21,114,352 5.0153
April 18-22 4,815,000 25,120,356 5.2171
April 25-29 5,453,503 28,016,436 5.1373
May 2-6 5,421,169 26,568,169 4.9008
May 9-13 2,843,816 13,855,735 4.8722
May 16-20 13,450,835 58,000,001  4.3120
 Total 42,033,852  200,000,000  4.7581 
       
     

100% complete

 

Weekly Report (Tranche 1 - EUR 200m)

Period (2016) Number of Shares Total Amount (EUR) *Average Price (EUR)
 January 13-15 4,864,285 26,091,485 5.3639
January 18-22 2,628,587 13,355,334 5.0808
January 25-29 1,430,237 7,327,969 5.1236
February 1-5 5,299,167 25,796,122 4.8680
February 8-12 5,323,724  23,867,808 4.4833
February 15-19 2,533,802 10,979,013 4.3330
February 22-26 3,985,107 17,846,104 4.4782
February 29 - March 4 292,689 1,419,994 4.8515
March 7-11 5,094,164 24,883,750 4.8848
March 14-18 1,360,273 6,907,514  5.0780
March 21-25 7,491,243 37,690,061 5.0312
March 28-31 779,405 3,833,534  4.9185 
Total 41,082,683
200,000,000 4.8682
       
      100%  complete

* Includes fees if applicable

Neutralization of stock dividend

Aegon has completed the repurchase of 29,258,662 common shares to neutralize the dilutive effect of the 2015 final stock dividend.

These shares will be held as treasury shares and will be used to pay future stock dividends.

Aegon repurchased common shares by engaging a financial intermediary to execute the transactions on its behalf.

These transactions commenced on July 4, 2016, and were completed on August 12, 2016. The common shares were repurchased at a maximum of the daily volume-weighted average price.

A weekly summary of the transactions is provided below. Further details are available in the Daily Overview by Exchange.

Weekly Report

Period (2016) Number of Shares Total Amount (EUR) Average Price (EUR)
July 4-8 5,215,000 16,905,911 3.2418
July 11-16 3,796,603 13,076,382 3.4442
July 18-22 4,282,863 14,966,674 3.4945
July 25-29 5,003,985 17,932,845 3.5837
August 1-5 5,951,439 20,776,242 3.4910
August 8-12 5,008,772 18,904,853 3.7743
 Total 29,258,662 102,562,908 3.5054
      100%  completed

Neutralization of stock dividend

Aegon has completed the repurchase of 20,136,673 common shares to neutralize the dilutive effect of the 2015 interim stock dividend. These shares will be held as treasury shares and will be used to pay future stock dividends.

Aegon repurchased common shares by engaging a third party to execute the transactions on its behalf.

These transactions commenced on September 16, 2015, and were completed on October 13, 2015. The common shares were repurchased at a maximum of the daily volume-weighted average price.

Weekly updates of the transactions are provided below.

Weekly Report

Period (2015) Number of Shares Total Amount (EUR) Average Price (EUR)
September 16 - 18 5,520,544 29,351,142 5.3167
September  21 - 25 4,032,000 20,437,793 5.0689
September 28 - October 2 3,780,645 19,122,936 5.0581
October 5 - 9 3,403,484 18,723,902 5.5014
October 12 - 13 3,400,000 18,638,738 5.4820
Total 20,136,673 106,274,510 5.2777
      100%  completed

Neutralization of stock dividend

Aegon has completed the repurchase of 16,279,933 common shares to neutralize the dilutive effect of the 2014 final dividend paid in shares. These shares are held as treasury shares and will be used to pay future stock dividends.

Aegon repurchased common shares using a third party to execute the transactions on its behalf.

The transactions commenced on June 17, 2015, and were completed on July 14, 2015. The common shares were repurchased at a maximum of the daily volume-weighted average price.

Weekly updates of the transactions are provided below.

Weekly Report

Period (2015) Number of Shares Total Amount (EUR) Average Price (EUR)
June 17 - 19 3,458,025 22,544,136 6.5194
June 22 - 26 2,766,714 18,799,421 6.7949
June 29 - July 3 4,187,663 27,838,019 6.6476
July 6 - 10 4,408,273 28,751,833 6.5222
July 13 -14 1,459,258 10,041,453 6.8812
Total 16,279,933 107,974,862 6.6324
      100% of program completed

Neutralization of stock dividend

Aegon has completed the share buyback program announced on September 17, 2014. This program neutralized the dilutive effect of the 2014 interim dividend paid in shares. These shares will be held as treasury shares and will be used to pay future stock dividends.

Aegon repurchased common shares by engaging a third party to execute the transactions on its behalf.

Between September 17, 2014 and October 15, 2014 a total of 16,319,939 common shares were repurchased, at an average price of EUR 6.49 per share.

Weekly updates of the transactions are provided below.

Weekly Report

Period (2014) Number of Shares Total Amount (EUR) Average Price (EUR)
September 17 - 19 1,565,000 10,280,770 6.5692
September 22 - 26 4,966,149 32,961,213 6.6372
September 29 - October 3 5,266,703 34,252,244 6.5035
October 6 - 10 3,547,376 22,525,018 6.3498
October 13 - 15 974,711 5,928,093 6.0819
Total 16,319,939 105,947,337 6.4919
      100% of program completed

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How do share buybacks add shareholder value?

A buyback – also known as share repurchase – is when a company buys its own shares, lowering the number of its shares traded in the market. Share buybacks add shareholder value in a couple of ways. First, they reduce the number of shares outstanding, which increases the earnings per share (EPS). EPS is one metric used when valuing companies. A higher EPS usually means a higher market value for the remaining shares. Second, repurchasing shares reduces equity, which improves return on equity.

Why does Aegon do share buybacks?

For some shareholders there can be tax benefits in choosing a dividend paid in shares over cash. Our share buybacks normally counteract the 'dilutive effect' of shareholders who opt to receive their dividend in shares.

When you issue more shares, every existing shareholder owns a smaller, or 'diluted', percentage of the company, making each share less valuable. So that's why we intend to buy the equivalent amount back.

The repurchased shares are held as treasury shares – that means they are held by us so they aren't counted in voting rights, for example. They'll be used to cover future dividends to Aegon shareholders.

In the past, we've also carried out share buybacks to increase returns to shareholders and to offset dilution of past share issuances.

Where does the money come from?

We use the excess capital position at our Holding company. This is the money we hold at the Group level to finance dividends, share buybacks, the repayment of debt or other strategic actions such as potential acquisitions or capital contributions to the units.

As a company, we need to balance making investments in our business with offering attractive returns to the investors who provide us with capital, as we cannot do business without the capital they provide.

The Holding's excess capital is financed by dividends we receive from our operations. We report our excess capital each half year in our half year results.

Doesn't insider knowledge prevent you from doing buybacks?

Although Aegon ultimately purchases the shares, we usually complete them through an intermediary. This is to ensure that we do not benefit from trades based on inside information. Using an intermediary also allows us to buy back shares even during the closed periods which occur before we publish our results.