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. Those who elected stock dividend will receive one Aegon common share for every 37 common shares held. The stock fraction is based on Aegon's average share price as quoted on Euronext Amsterdam, using the high and low of each of the five trading days from September 10 up to and including September 14, 2018. The average share price calculated on this basis amounted to EUR 5.1952. The dividend will be payable as of September 21, 2018.
The repurchase of shares will commence on October 1, 2018, and is expected to be completed on or before November 9, 2018. Aegon will engage a third party to execute the transactions on its behalf. 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 will appear below.
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 (pdf).
Weekly Report - Aegon share buyback
for neutralization of 2017 Final Dividend
| Start | End | Number of Shares | Total Amount (EUR) | Average Price (EUR) |
|
Monday, |
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% |
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Previous
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. Further details are available in the Daily Overview by Exchange (pdf).
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.