Aegon(AEG) - 2023 Q2 - Quarterly Report

Filing Information This section details Aegon N.V.'s June 2023 Form 6-K filing, including pro forma financial information and official signature Report Details Aegon N.V.'s June 2023 Form 6-K includes unaudited pro forma financial data for the Aegon NL disposition - Aegon N.V. filed a Form 6-K report for June 2023[1] - The report includes unaudited pro forma financial information concerning the disposition of Aegon NL businesses[1] Signature The report was signed by J.H.P.M. van Rossum, Head of Corporate Financial Center, on June 30, 2023 - The report was signed by J.H.P.M. van Rossum, Head of Corporate Financial Center, on June 30, 2023[2] Pro Forma Financial Information Overview This section outlines Aegon N.V.'s disposition of Aegon NL to a.s.r., detailing the transaction and pro forma presentation basis Transaction Background and Purpose Aegon N.V. is disposing of Aegon NL to a.s.r. for €2.2 billion cash and a 29.99% equity stake, expected to close in H2 2023 - Aegon N.V. is disposing of its Dutch pension, life, non-life insurance, banking, and mortgage origination activities (Aegon NL) to ASR Nederland N.V. (a.s.r.)[4] - The transaction, announced on October 27, 2022, was approved by Aegon's EGM on January 17, 2023, and is expected to close in H2 2023, subject to regulatory approvals[4] ASR Transaction Consideration | Consideration Type | Value/Stake | | :----------------- | :---------- | | Gross Cash Proceeds | EUR 2.2 billion | | Equity Stake | 29.99% in a.s.r. ordinary shares | Basis of Pro Forma Presentation The pro forma financial information presents Aegon N.V.'s consolidated statements as of and for the year ended December 31, 2022, excluding Aegon NL, as if the ASR transaction had been completed on January 1, 2022. Aegon NL's assets and liabilities were already classified as held for sale and discontinued operations in Aegon's 2022 Annual Report - The pro forma financial information assumes the ASR transaction was consummated as of January 1, 2022[5] - Aegon NL's assets and liabilities were classified as held for sale and discontinued operations in Aegon's 2022 Annual Report on Form 20-F[5] Pro Forma Financial Statements This section presents Aegon N.V.'s pro forma consolidated statements of comprehensive income and financial position post-Aegon NL disposition Pro forma Condensed consolidated statement of comprehensive income of Aegon N.V. The pro forma condensed consolidated statement of comprehensive income for the year ended December 31, 2022, shows a pro forma net result from continuing and discontinued operations of (€1,582) million, reflecting a (€178) million adjustment from the historical (€1,404) million. Total comprehensive income/loss attributable to owners of Aegon N.V. decreased from (€10,991) million historically to (€10,446) million pro forma, after a €545 million adjustment Pro Forma Condensed Consolidated Statement of Comprehensive Income (EUR millions) | Item | Historical (2022) | Pro Forma Adjustments | Pro Forma (Unaudited) | | :---------------------------------------------------------------- | :---------------- | :-------------------- | :-------------------- | | Net result from continuing and discontinued operations | (1,404) | (178) | (1,582) | | Total other comprehensive income/ (loss) | (9,545) | 723 | (8,823) | | Total comprehensive income/ (loss) | (10,950) | 545 | (10,405) | | Total comprehensive income/ (loss) attributable to: Owners of Aegon N.V. | (10,991) | 545 | (10,446) | Pro forma Condensed consolidated statement of financial position of Aegon N.V. The pro forma condensed consolidated statement of financial position as of December 31, 2022, reflects significant adjustments due to the Aegon NL disposition. Total assets decreased by €83,661 million to €318,125 million, primarily from the exclusion of €89,752 million in assets held for sale. Group equity saw a (€557) million adjustment, resulting in a pro forma total of €13,633 million Pro Forma Condensed Consolidated Statement of Financial Position (EUR millions) | Item | Historical (2022) | Pro Forma Adjustments | Pro Forma (Unaudited) | | :--------------------------------- | :---------------- | :-------------------- | :-------------------- | | Assets | | | | | Cash and cash equivalents | 3,407 | 2,368 | 5,775 | | Assets held for sale | 89,752 | (89,752) | — | | Investments in associates | 165 | 2,564 | 2,729 | | Total assets | 401,786 | (83,661) | 318,125 | | Equity and Liabilities | | | | | Group equity | 14,190 | (557) | 13,633 | | Liabilities held for sale | 84,339 | (84,339) | — | | Total liabilities | 387,596 | (83,104) | 304,492 | | Total equity and liabilities | 401,786 | (83,661) | 318,125 | Notes to Pro Forma Financial Statements Adjustments This section details specific adjustments to Aegon N.V.'s pro forma financial statements, covering income, balance sheet, and equity Adjustment to Net Result from Continuing and Discontinued Operations The (€178) million adjustment to net result primarily reflects the exclusion of €379 million from discontinued operations, the inclusion of a €941 million remaining impairment, and fair value adjustments for a.s.r. (€136 million) and Aegon NL (€327 million) as of January 1, 2022. It also includes €163 million from a.s.r. dividends Key Components of Net Result Adjustment (EUR millions) | Component | Impact | | :------------------------------------------------ | :----- | | Exclusion of net result from discontinued operations | (379) | | Inclusion of remaining impairment upon sale completion | 941 | | Fair value adjustment of a.s.r. (Jan 1, 2022) | (136) | | Fair value adjustment of Aegon NL (Jan 1, 2022) | 327 | | 2022 result of share in associate a.s.r. (dividends) | 163 | - The valuation of Aegon's 29.99% stake in a.s.r. is dependent on the actual share price at closing, with a pro forma assumption of €40.50 per share as of January 1, 2022, compared to a closing price of €38.58 on June 16, 2023[10] - No adjustment was made for possible stranded head-office costs, and the long-term asset management agreement with a.s.r. is assumed to have a zero net impact on earnings[10] Adjustment to Discontinued Operations (Non-reclassified OCI) A (€703) million adjustment was made to exclude other comprehensive income items that will not be reclassified to profit or loss, pertaining to discontinued operations Adjustment to Discontinued Operations (Non-reclassified OCI) | Item | Adjustment (EUR millions) | | :---------------------------------------------------------------- | :------------------------ | | Exclusion of non-reclassifiable OCI items from discontinued operations | (703) | Adjustment to Discontinued Operations (Reclassifiable OCI) A €1,426 million adjustment was made to exclude other comprehensive income items that may be reclassified subsequently to profit or loss, pertaining to discontinued operations Adjustment to Discontinued Operations (Reclassifiable OCI) | Item | Adjustment (EUR millions) | | :-------------------------------------------------------------- | :------------------------ | | Exclusion of reclassifiable OCI items from discontinued operations | 1,426