Aegon publishes 2022 financial information under IFRS 9 and IFRS 17 accounting standards
Aegon has today published its financial supplement for both half-year and full-year 2022 under the IFRS 9 and IFRS 17 accounting standards that became effective on January 1, 2023. This is to help analysts and investors to better assess Aegon’s results trajectory in 2023 following the implementation of the new standards.
IFRS 17 is the first international accounting standard for insurance contracts and aims to create more consistency and comparability between companies. While the new accounting standard will impact Aegon’s financial reporting, it will not impact its strategy, capital management approach, financial targets, nor its outlook.
In the IFRS 9 and IFRS 17 balance sheet of December 31, 2022, Aegon’s shareholders’ equity is expected to decline to around EUR 8.8 billion from around EUR 11.3 billion excluding revaluation reserves under IFRS 41. This reflects the establishment of the new contractual service margin (CSM) of EUR 9.1 billion pre-tax at the end of the year 2022. The CSM represents a substantial stock of future value that is expected to be released through the operating result over time and to lead to a higher operating result than that reported under IFRS 41.
The operating result under the new accounting standards is EUR 1.8 billion for the full year 2022 and compares with EUR 1.1 billion under IFRS 41 (both results exclude the operating result of Aegon the Netherlands following the transaction with a.s.r.). For 2022, Aegon’s net result under the new standards is a loss of EUR 906 million, compared with a loss of EUR 2.5 billion under IFRS 41. The higher net result is mainly driven by lower losses from market impacts on fair value items and lower charges from assumption updates under IFRS 17 compared to IFRS 41.
The updated financial supplement can be found here and in the 4Q 2022 tab in the Financial Results section of our website. On March 9, 2023, Aegon held a webinar explaining the choices it has made in implementing IFRS 17 and IFRS 9. The presentation and playback of the webinar can be found here on our website.
1 IFRS 4 refers to the figures mentioned in Aegon’s Integrated Annual Report 2022 that can be found here on our website.