About Aegon

Aegon N.V. (Aegon) operates as an integrated financial services company. The company offers investment, protection, and retirement solutions. The company serves 29.5 million customers globally. The company has three core markets - the United States, the Netherlands, and the United Kingdom. The company focuses on three attractive growth markets - China, Brazil, and Spain & Portugal - that the company will continue to access through its successful partnerships. Aegon Asset Management (Aegon AM) is an active global investment business. Leveraging the company's global brand and a global operating platform, Aegon AM operates in the company's core and growth markets, as well as in France, Germany, and Hungary. In China, Aegon AM owns 49% of Aegon-Industrial Fund Management Company, an asset manager offering mutual funds, segregated accounts, and advisory services. Markets In the United States, the company operates primarily under two brands: Transamerica and World Financial Group Insurance Agency, an affiliated insurance agency. Transamerica has two divisions, Workplace Solutions and Individual Solutions. Workplace Solutions offers retirement plan recordkeeping, advisory services, employee benefits, group annuities, collective investment trusts, health savings and flexible savings accounts, individual retirement accounts, and stable value solutions to employers and their employees. Through several distribution channels, Transamerica's Individual Solutions division offers life insurance, annuities, and mutual funds to retail customers. In the Netherlands, Aegon focuses on life insurance, long-term savings, pension and annuity solutions, and mortgages. The Workplace Solutions business focuses on new-style defined contribution pension solutions, associated disability services, and pensions administration. Under the Knab brand, Aegon provides digital banking solutions. In 2022, the company announced that Aegon the Netherlands will be combined with a.s.r. to create a leading Dutch insurance company. In the United Kingdom, Aegon is the market-leading investment platform, providing a broad range of investment, retirement solutions, and protection products to individuals, advisers, and employers. Aegon UK accesses customers through the workplace and retail financial advisers. Growth Markets In China, Aegon owns a 50% stake in Aegon THTF Life Insurance Company, which offers life insurance solutions through a network of branches, primarily in eastern China. In Brazil, Aegon has a 54.9% economic interest, in Mongeral Aegon Group (MAG Seguros), the country's third-largest independent life insurer. MAG Seguros offers individual protection solutions. Together with Banco Cooperativo do Brasil (Bancoob), MAG Seguros also operates a joint venture company dedicated to providing life insurance and pension products within the Sicoob, Brazil's largest cooperative financial system. In Spain & Portugal, Aegon has a strategic partnership with Banco Santander to distribute life, health, and non-life insurance products through the bank's branches, with Aegon owning a 51% stake in the joint venture. Aegon Spain's own distribution channel offers life insurance, health insurance, and pension products. Aegon Asset Management (Aegon AM) is an active global investment business that manages assets for a global client base consisting of pension plans, public funds, insurance companies (including Aegon's subsidiaries), banks, wealth managers, family offices, and foundations. Aegon AM is active in Aegon's core and growth markets, as well as in France, Germany, and Hungary. Aegon AM owns 49% of Aegon-Industrial Fund Management Company, a Shanghai-based asset manager. Americas Aegon Americas operates primarily in the United States and also has operations in Canada. The United States and Canada In the United States, Aegon Americas operates primarily under two brands: Transamerica and World Financial Group Insurance Agency, an affiliated insurance agency. In Canada, Aegon Americas operates primarily through World Financial Group Insurance Agency of Canada. Transamerica is one of the leading life insurance companies in the United States, and the largest of Aegon's operating units worldwide. Transamerica businesses in the United States serve customers in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and Guam. The company's primary offices are in Cedar Rapids, Iowa; Denver, Colorado; and Baltimore, Maryland. There are additional offices located throughout the United States. Effective January 1, 2022, all of MAG Seguros, Aegon's operation in Brazil, is reported as part of Aegon International. Transamerica Corporation is the holding company for Aegon's the U.S. operations, and all the U.S. business is conducted through its subsidiaries. Transamerica entities collectively have operating licenses in every U.S. state, in addition to the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and Guam. Transamerica is organized into two business divisions, Individual Solutions and Workplace Solutions. Individual Solutions offers life insurance, annuities, and mutual funds to retail customers. Workplace Solutions offers retirement plan record-keeping, advisory services, employee benefits (life insurance and supplemental health insurance), group annuities, collective investment trusts, health savings and flexible savings accounts, individual retirement accounts, and stable value solutions to employers and their employees. Transamerica offers these product lines, through several distribution and sales channels and delivers insurance primarily through one of its key insurance subsidiaries Transamerica Life Insurance Company and, in New York, Transamerica Financial Life Insurance Company. Aegon has designated the Unites States as a core market, with Transamerica's businesses classified as either Strategic Assets or Financial Assets. Strategic Assets are those considered to have a greater potential for an attractive return on capital and growth. In Individual Solutions, Transamerica focuses on select life insurance and investment products, including term life insurance, final expense whole life insurance, indexed universal life insurance, mutual funds, structured index-linked annuities and certain variable annuities with limited interest rate sensitive guarantees. In Workplace Solutions, Transamerica focuses on small-to mid-sized retirement plan administration, employee benefits, stable value solutions, and the Transamerica Advice Center. It also continues to operate in the retirement plan administration market for large employers. In addition, Workplace Solutions provides value-added services, such as Managed Advice and its proprietary investment solutions. Several Transamerica product lines are considered Financial Assets. Financial Assets are capital intensive assets with relatively low returns on capital. In Individual Solutions, these are traditional variable annuities (VAs) with significant interest rate-sensitive guaranteed living benefits and death benefits; standalone individual long-term care (LTC) insurance; and fixed annuities. Sales and Distribution Channels Transamerica offers its products and services through affiliated and non-affiliated distributors to meet customer needs and provide guidance to its customers. Individual Solutions supports individual customers, whereas Workplace Solutions supports individuals primarily through their employers as customers. Individual Solutions Transamerica's Individual Solutions division products are sold through three primary distribution channels. The wholesale distribution channel consists of wholesale agreements with banks and wirehouses through the company's wholesale broker-dealer, Transamerica Capital, Inc. (TCI). The brokerage distribution channel offers product solutions through independent insurance producers. The affiliated retail agency and broker-dealer channel consists of World Financial Group (WFG), Transamerica Agency Network (TAN), and Transamerica Financial Advisors (TFA), who serve clients across all market segments. Workplace Solutions Transamerica distributes its employer-sponsored Workplace Solutions products and services to employers through independent financial advisors, benefits consultants, and insurance agents. In addition, the Advice Center deploys a team of experienced registered representatives, investment advisor representatives, and licensed insurance agents to serve group plan participants and assist with Individual Retirement Account (IRA) rollovers and retirement portfolio management. Business Lines Individual Solutions Life Solutions Transamerica offers a portfolio of protection solutions to customers in a broad range of market segments. Life products include term life, index universal life, and whole life insurance. Universal life and variable universal life are managed as a closed block. Term Life Insurance Term life (TL) insurance provides death benefit protection without cash value accumulation. Benefits are paid to policy beneficiaries in the event of the death of the insured during a specified period. Living benefit riders that provide accelerated benefits for critical illnesses or chronic conditions are available on term insurance. Index Universal Life Insurance Indexed universal life (IUL) insurance provides permanent death benefit protection and cash value accumulation with flexible premium payments. IUL offers both market-paced growth potential in the indexed accounts and downside protection. LTC riders and other living benefit riders are available on IUL products. Whole Life Insurance Whole life (WL) insurance provides permanent death benefit protection provided that the required premiums are paid, while accumulating cash values based on statutory requirements. Premiums are generally fixed and usually payable over the life of the policy. Among the WL insurance products offered is final expense WL insurance, which is intended to cover medical bills and burial expenses. Universal Life Insurance Universal life (UL) insurance is flexible permanent life insurance that offers death benefit protection together with the potential for cash value accumulation. After the first few years, there is usually no set premium. The policyholder can adjust the frequency and amount of premium payments, as long as sufficient premiums are accumulated in the policy's account value to cover charges in the month that follows, which are called 'monthly deductions'. Some versions of this product, which are not actively sold, have 'secondary guarantees'. These maintain life insurance coverage when the cash value is insufficient, as long as the customer pays a specified minimum premium. Variable Universal Life Insurance Variable universal life (VUL) insurance is permanent life insurance that offers both a death benefit and cash value accumulation potential with financial market participation. The premium amount for VUL insurance is flexible and may be changed by the policyholder within contract limits. Coverage amounts may change as well. The investment feature usually includes 'sub-accounts', which provide exposure to investments, such as stocks and bonds. This exposure increases cash value return potential but also the risk of additional premium requirements or lower coverage amounts in comparison with a traditional, non-variable life insurance policy. Accident and Health Transamerica Individual Solutions no longer actively offers supplemental health insurance and standalone LTC insurance. Transamerica manages the standalone LTC business as a Financial Asset. Supplemental Health Insurance Supplemental health insurance products include accidental death and dismemberment, accidental injury, cancer, critical illness, disability, hospital indemnity, Medicare supplement, retiree medical, dental, vision, and supplemental medical expense indemnity issued by affiliated and/or unaffiliated insurance companies. Supplemental health insurance products within Individual Solutions are managed as a closed inforce block. Long-term Care Insurance LTC insurance products are a category of health insurance and provide benefits to policyholders that require qualified LTC services when they are unable to perform two or more specified activities of daily living or develop a severe cognitive impairment. LTC insurance helps protect against the high cost of LTC services, and it may also help families better manage the financial, health, and safety issues associated with LTC. Transamerica offers a LTC rider on certain life insurance products and stopped offering standalone products in 2021. Mutual Funds and Collective Investment Trusts (CITs) Mutual funds are professionally managed investment vehicles consisted of pooled money invested by numerous individuals or institutions. Such funds are invested in various underlying security types, such as stocks, bonds, money market instruments, and other securities. Transamerica offers mutual funds that are focused on several different asset classes, including the U.S. equity, global/international equity, fixed income, money markets and alternative investments, as well as asset allocation and target-date funds with combined equity and fixed income strategies. Transamerica mutual funds utilize the portfolio management expertise of asset managers across the industry in a sub-advised platform, which are both affiliated with and not affiliated with Aegon. These managers are subject to a rigorous selection and monitoring due diligence process conducted by Transamerica Asset Management. A CIT is a pooled investment fund, held by a bank or trust company, and generally available only to certain types of retirement plans and other institutional investors. Transamerica serves as the advisor to some of the CITs it offers, which focus on several different asset classes, including the U.S. equity, international equity, and fixed income. Transamerica also leverages the portfolio management expertise of asset managers across the industry. Annuity Solutions Registered Index Linked Annuites (RILAs) Transamerica began selling registered index linked annuities (RILAs) in the second quarter of 2022. A RILA is a tax-deferred long-term savings option that limits exposure to downside risk and provides the opportunity for growth. RILAs provide the opportunity for growth based in part on the performance of a stock market index. RILAs offer tax-deferred growth potential, annual free withdrawal amounts, and an option to convert the annuity into a stream of income for retirement or for other long-term financial planning. RILA owners do not invest directly in the underlying index. Premiums are invested at Transamerica's discretion as outlined in the contract and the RILA owner receives index-linked crediting, which can be positive or negative. The owner accepts a level of risk of market loss in exchange for higher upside potential. Variable Annuities Variable Annuities allow the policyholder to accumulate assets for retirement on a tax-deferred basis and to participate in equity or bond market performance. Additional insurance guarantees, which are offered through riders, can be added to VAs, including guaranteed minimum death benefits (GMDBs) and guaranteed living benefits (GLBs). GMDBs provide a guaranteed benefit in the event of death. GLBs are intended to provide a measure of protection against market risk while the annuitant is alive. Different forms of GLBs are offered, such as guaranteeing an income stream for life and/or guaranteeing principal protection. While Transamerica continues to offer certain variable annuities, it discontinued sales of variable annuities with significant interest rate sensitive living and death benefits in the first quarter of 2021 and manages that business as a Financial Asset. Fixed Annuities Fixed annuities allow the policyholder to accumulate assets for retirement on a tax-deferred basis through periodic interest crediting and principal protection. Transamerica stopped new sales of fixed and fixed indexed annuities in the first quarter of 2021. Premium additions on in force fixed annuities are allowed in some contracts. However, Transamerica's fixed indexed annuity stopped receiving any premium deposits after the second quarter of 2022, as the contracts allow for additions only for one year after issue. Workplace Solutions Life Transamerica offers a suite of employee benefit plans that can help employees and their families in case of events that can throw saving and retirement plans off track. The Workplace Solutions life offerings include employer sponsored group life and supplemental life insurance products (term life, whole life, universal life). Workplace Solutions also offers individual life through the Advice Center, which offers customers the ability to confer with a registered retirement planning consultant regarding their investment strategy and additional needs for life events. Accident and health The Workplace Solutions employee benefit plans offer accident and health products including accidental death and dismemberment (AD&D), disability, and supplemental health insurance products (accident, cancer, critical illness, disability, executive medical, hospital indemnity, medical expense (gap), retiree medical). Retirement Plans and IRAs Comprehensive and customized retirement plan services are offered to employers across the entire range of defined benefit, defined contribution, and non-qualified deferred compensation plans for single employer plans, multiple employer plans (MEPs), and pooled employer plans (PEPs). Services are also offered to individuals rolling over funds from other qualified retirement funds or IRAs. Retirement plan services, including administration, record-keeping and related services are offered to employers of all sizes and to plans across all market segments with focus on small to mid-sized organizations. Transamerica also works closely with plan advisors and third-party administrators to serve their customers. Transamerica Retirement Solutions is a top-ten defined contribution record-keeper in the United States based on number of plan participants. Plan sponsors have access to a wide array of investment options. Tools are provided to help plan participants monitor their retirement accounts and engage in behavior to stay on track towards a funded retirement. Managed Advice is a managed account option that plan sponsors can make available to participants that provides investment advice to participants using the plan's slate of funds. For individuals, retirement-related services and products include IRAs, advisory services, and annuities, as well as access to other financial insurance products and resources. Stable Value Solutions Transamerica's Stable Value Solutions business offers synthetic guaranteed investment contracts (GICs) primarily to tax-qualified institutional entities, such as 401(k) plans and other retirement plans and college savings plans. A synthetic GIC 'wrapper' is offered around fixed-income invested assets, which are owned by the plan and managed by the plan or a third-party money manager hired by the plan. A synthetic GIC is typically issued with an evergreen maturity and may be terminated under certain conditions. Such a contract helps to reduce fluctuations in the value of the wrapped assets and provides book value withdrawals for plan participants. Competition Transamerica's primary competitors in the variable annuity (VA) market are Jackson National, Lincoln National Corp. (Lincoln National), AIG, Nationwide, and Equitable. Some of Transamerica's main competitors in the mutual fund market include John Hancock, Hartford Funds, Lord Abbott, PGIM, and American Century. In the defined contribution plan administration market, Transamerica's largest competitors (based on assets under administration) are Fidelity, Empower, TIAA, Vanguard, Alight, Principal Financial, Voya, and BofA Securities. Transamerica's largest competitors in the defined benefit segment are Alight, Willis Towers Watson, Conduent, Fidelity, Aon, Mercer, and Milliman. In the market for synthetic GICs, Transamerica's Stable Value Solutions business, the largest competitors are Prudential Financial, MetLife, Voya, and Pacific Life. Regulation and Supervision At the federal level, various Transamerica companies are subject to the Gramm-Leach-Bliley Act (GLBA), the Fair Credit Reporting Act (FCRA), and the Health Insurance Portability and Accountability Act (HIPAA), among other laws. Variable insurance products and mutual funds offered by Transamerica are subject to regulation under the federal securities laws administered and enforced by the Securities and Exchange Commission (SEC). A number of Transamerica companies are also registered as investment advisors and are subject to the SEC's Regulation Best Interest (Regulation BI). The Netherlands Aegon the Netherlands operates as a provider of life insurance and pensions. In October 2022 Aegon announced that it had reached an agreement with a.s.r. to combine its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. The combination will create a leading Dutch insurance company. This step enables Aegon to accelerate its strategy and represents a major step in its ambition to become a leader in its chosen markets. Aegon will receive a 29.99% strategic stake in a.s.r., with associated governance rights. The closing of the transaction is subject to customary conditions, including regulatory and antitrust approvals. Based on the required steps, and necessary approvals, the transaction is expected to close in the second half of 2023. Aegon the Netherlands also operates through several other brands next to Aegon brand, including Knab, TKP Pensioen, Nedasco, and Robidus. Aegon the Netherlands has four lines of business: Life; Mortgages; Banking; and Workplace Solutions. Aegon the Netherlands' primary subsidiaries are: Aegon Bank N.V.; Aegon Cappital B.V.; Aegon Hypotheken B.V.; Aegon Levensverzekering N.V.; Aegon Schadeverzekering N.V.; Aegon Spaarkas N.V.; Nedasco B.V.; Robidus Groep B.V.; and TKP Pensioen B.V. Aegon the Netherlands is organized into Financial Assets and Strategic Assets. The life insurance activities of Aegon the Netherlands are considered Financial Assets. Aegon has established a dedicated team to manage these businesses, which is responsible for maximizing its value,. Aegon selectively competes in the defined benefit market. This also includes supporting employers in their transition towards defined contribution solutions under the new pension agreement. New sales for these blocks are limited and focused on products with higher returns and a moderate risk profile: mainly immediate pensions annuities, indexations on existing group life contracts and risk insurance. Strategic Assets are the businesses in which Aegon the Netherlands will invest to grow its customer base and increase margins. Aegon the Netherlands strategically focuses on the following business: Mortgages (Aegon Hypotheken), Banking (Knab); and Workplace solutions for employers. The last category consists of the following businesses: Aegon Cappital, TKP Pensioen, Aegon Schadeverzekering, Robidus, and Nedasco. Sales and Distribution Channels Aegon the Netherlands uses a variety of distribution channels to help customers access the products and services appropriate to their needs. All business lines use an intermediary channel, which focuses on independent brokers in different market segments in the Netherlands. Aegon the Netherlands continues to invest in online capabilities to support customers and intermediaries, to further enhance the digital self-service experience. Business Lines Aegon the Netherlands' Life entity (Aegon Levensverzekering) is managed as a Financial Asset. This means that the focus is on maximizing its value through active in-force management, disciplined risk management, and capital management actions. These actions focus on protecting the capital position, increasing capital generation, and reducing expenses by outsourcing the servicing of the life-books. Pensions Aegon the Netherlands offers DC schemes through a separate legal entity - Aegon Cappital - the consequence for Aegon Levensverzekering is that all of its Group pension products will become service books. Aegon the Netherlands will only selectively compete in the defined benefit market. This also includes supporting employers in their transition towards defined contribution solutions under the new pension agreement. Renewals of existing contracts are possible, but only if the renewal facilitates the existing customers in their transition to DC. In addition, Aegon Levensverzekering will continue to sell risk insurance and annuities that are closely linked to DC schemes. The Group DB products that remain on the balance sheet of Aegon Levensverzekering are as follows: separate account group contracts with individually determined asset investment strategies, profit sharing and guarantees; contracts with profit sharing based on a pre-determined interest rate; DB subscriptions, a standardized product that offers a one-year guarantee; contracts without profit sharing. As the DB subscription product remains open for existing customers and, as some contracts have a due date in the future, there are still premiums received for these products. Annuities The actively sold products in this category are simple payout annuities and variable annuities without guarantees. These products are linked to DC schemes in which participants build up their capital and are obliged, by law, to purchase an annuity at the pension date. Participants can choose between a guaranteed annuity - where all risks are borne by Aegon - or a variable annuity without investment guarantees, where all risks are borne by the participant. Given that a significant shift has been observed toward DC schemes, these annuities are a natural driver of growth as they provide a solution for the payout phase. Annuity insurance also includes older products with guaranteed interest rates and profit sharing for which no new business is written. Risk Insurance This category mainly includes the survivor's pension insurance sold as a rider to DC pension schemes. Premiums are mainly paid by the employer and the product pays benefits to the spouse/children in the event of the death of the insured. Endowment Insurance Endowment insurance includes several products that accumulate a cash value. Premiums are paid at inception or over the term of the contract. These products pay benefits on the policy maturity date, subject to survival of the insured. Most policies also pay death benefits should the insured die during the term of the contract. Minimum interest guarantees exist for all generations of endowment insurance products written, except for universal life products, for which premiums are invested solely in equity funds. These products are no longer being sold. Term and Whole Life Insurance Term life insurance pays out death benefits should the insured die during the term of the contract. Whole life insurance pays out death benefits in the event of death, regardless of when this occurs. Premiums and amounts insured are established at inception of the contract and are guaranteed. The amount insured may be adjusted at the request of the policyholder. Term life insurance policies do not include profit-sharing mechanisms. Part of the whole life insurance portfolio has profit-sharing features, which are based on external indices or the return of related assets. In the first quarter of 2020, Aegon the Netherlands stopped offering these products. Mortgages Aegon the Netherlands offers mainly annuity and linear residential mortgages, while also catering to consumers requiring interest only mortgage loans. Mortgage loans are originated both as investments for Aegon the Netherlands' insurance and bank entities, as well as distributed to third-party investors. Such investors are provided access to this high-quality asset class through the Aegon Dutch Mortgage Fund, Robuust (a third-party label where Aegon has the exclusive right to purchase and distribute the mortgages receivables), SAECURE (Aegon's Dutch residential mortgage-backed securities program), Aegon Bank N.V.'s covered bond program, and various bespoke structures to tailor to investors' needs. Investors value the company's mortgage offering for the attractive spread and low credit-loss experience through disciplined underwriting. Consumers and independent financial advisors choose Aegon mortgages for the high quality of service, reliable operations, and accessibility through the economic cycle. Banking Introduced in 2012 and operating under Aegon Bank N.V.'s banking license, Knab was the first fully online bank in the Netherlands. Knab's ambition is to be the online bank for entrepreneurs and their families. Knab focusses on digital innovation, human service, and user friendliness. As an online bank, Knab offers meaningful, understandable, and easy-to-use products and services for convenience (such as payments and bookkeeping) and solutions for tomorrow helping customers to protect and grow their businesses and wellbeing (such as insurances and business loans). Knab aims to optimize wealth by closing the pension gap to help its customers to plan and attain their financial freedom in the future (such a savings, investments, and pension products). Workplace Solutions Non-life Accident and Health Aegon the Netherlands offers disability and sick leave products to employers to cover payments to their employees that are not covered by social security and where the employer bears the risk. For some risks, employers can choose to use the government provided system, self-insure, or buy commercial insurance via, for instance, Aegon. Private insurance appeals to employers, because it offers a wider set of coverage options and can therefore be better tailored to the needs of the employer in protecting its employees. Waiver of pension premium in case of disability is offered through Aegon Cappital. For individuals, Aegon the Netherlands offers a disability product mainly targeted at the growing self-employed market. Property and Casualty (P&C) Aegon the Netherlands has focused exclusively on retail lines in P&C insurance, offering products in the segments of property, motor, travel, legal assistance, private liability claims, pet insurance, and injury. The ambition for the P&C retail segment is to provide the best digital service in the Dutch P&C market while building long-lasting relationships with customers and distribution partners. Through the service concepts, Aegon the Netherlands supports intermediaries with excellent digital processes to help their customers live their best lives. This is done by stimulating performance at sustainable levels for customers, intermediaries, and the insurer. In addition to the intermediary market, Aegon the Netherlands has further developed digital and online capabilities, especially as the direct market has sustained a sizable share in the overall distribution in the past years, in particular for the Motor segment. The direct market includes sales via Aegon's own website and affiliates, as well as through aggregator websites. Aegon Cappital Aegon Cappital is a provider of DC pension schemes offered through intermediary advisors. Aegon Cappital offers DC pension schemes in a standardized subscription-based model and via customized contracts. The model enables employers to choose from a variety of contribution tables and social security offsets, while remaining flexible for regulatory changes, such as changes in pension age or fiscal contribution limits. Savings premiums are invested in life cycle funds managed by Aegon Investment Management B.V. Aegon Cappital is one of the largest pension premium institutions (PPIs) in the Netherlands and benefits considerably from economies of scale. Aegon the Netherlands has identified this market as an opportunity for growth and intends to maintain its leadership position with Aegon Cappital in cooperation with other Aegon units. The volatile interest rate environment, which result in unpredictable DB pension costs for the employer did result in a continued shift from DB to DC schemes. In addition, the fundamental changes of the Dutch pension system as of mid-2023 will add to this shift up until the implementation of the new pension system will be completed (January 1, 2027). The schemes include disability and/or life insurance which are offered by partners Aegon Levensverzekering, Aegon Schadeverzekering, and Elips Life AG, and the option for participants to buy deferred annuities offered by partner Aegon Levensverzekering. The main risks for Aegon Cappital are operational and regulatory risk. TKP Pensioen, Robidus, and Nedasco TKP Pensioen is a player in the Dutch market for pension administration. TKP Pensioen administers pension rights for several large company and industry pension funds, as well as other pension providers, such as premium pension institutions. Their customers - 105,000 employers representing 3.8 million participants - rely on TKP Pensioen for correct and timely pension payments, and clear and accessible pension information and communication. This ranges from the mandatory pension statements to customer contact and digital customer services. Robidus Groep advises corporations on the risks and associated costs of absenteeism and disability under Dutch social security legislation and acts as an insurance broker for income related insurances. Nedasco is an intermediary service provider that is mainly active in non-life business domains. Competition Aegon the Netherlands faces strong competition in all markets from insurers, banks, investment companies, and pension funds. Its main competitors are NN Group, a.s.r., and Allianz Benelux. Regulation and Supervision The following insurance entities of Aegon the Netherlands are subject to prudential supervision by the Dutch Central Bank (DNB): Aegon Levensverzekering N.V.; Aegon Schadeverzekering N.V.; and Aegon Spaarkas N.V. Within Aegon the Netherlands, Aegon Levensverzekering N.V. and Aegon Spaarkas N.V. conduct life insurance activities. Aegon Schadeverzekering N.V. conducts non-life insurance activities. The United Kingdom Aegon United Kingdom (Aegon UK) is the market-leading investment platform in the United Kingdom, providing a broad range of investment, retirement solutions, and protection products to individuals, advisers, and employers. Aegon UK accesses customers through the workplace and retail financial advisers and has a market-leading position in each. It actively trades with over 4,000 advisers and around 10,000 employers giving it 4.1 million customers. Aegon has designated the United Kingdom as a core market with strategic focus on growing the Workplace and Retail channels, and on retaining customers in its traditional insurance book. Aegon UK is viewed as a Strategic Asset, which Aegon plans to invest in with a view to growing the customer base, improving customer retention, and growing margins. Aegon UK main offices are in Edinburgh, London, Peterborough, and Witham. Aegon UK plc is Aegon's holding company in the United Kingdom. The leading operating subsidiaries, which all operate under the Aegon brand, are: Scottish Equitable plc; Cofunds Limited; Aegon Investment Solutions Limited; and Aegon Investments Limited. Business Lines Aegon UK operates a modern fee-based investment 'platform' business along with a 'traditional insurance' business. Aegon UK's platform business delivers a range of propositions through Workplace and Retail channels, together with protection products and an institutional trading platform business. This is supported by an investment solutions capability that allows customers to invest in proprietary Aegon funds, driving additional fee margin. Aegon UK's traditional insurance business consists of older contracts that are no longer actively marketed to new customers. Sales and Distribution Aegon UK has two principal distribution channels: the Workplace accessed through employers and Retail via financial advisers. Aegon UK works with those employers and advisers to deliver an online experience for customers. The platform is designed to support customers throughout their life as needs evolve by providing a comprehensive range of products and funds, moving with them each time they change employers and allowing them to engage with different advisers. Workplace Channel The Workplace channel provides the U.K.-based employers with Workplace pensions and savings schemes. It allows Aegon UK to participate in the strongly growing auto-enrolment market by delivering a market leading financial wellbeing proposition allowing it to acquire around 250,000 individual customer relationships every year. Aegon UK has a leading position covering all major Workplace savings products and participates in both the small and medium-sized (SME) and large employer segments. A key driver of growth is in the Master Trust market, the fastest-growing sector of the U.K. Defined Contribution market, where Aegon UK has an established and market-leading offering. Aegon UK works with leading employee benefits consultants and corporate advisers to provide a Workplace savings platform to employers, such as WH Smith, EasyJet, and Skanska. This combines its core pension capabilities with Individual Savings Accounts (ISAs) and General Investment Accounts (GIAs), which allows employees to maximize their savings while employed. At the heart of this is Aegon UK's employee digital portal providing a personalized customer experience. This provides tools to enable employees to make more informed decisions. The portal also links into the wider engagement activities, such as seminars in the workplace, and online innovations that help customers consolidate assets held elsewhere, increase their savings, and transition into retirement. Personalized Member Experience - A series of developments to enhance the company's employee digital portal and app starting with the launch of a new digital financial education platform supported by live television events from Pension Geeks in 2022. This will be followed by a series of enhancements to digitize key journeys and enhance the tools/support provided to customers. Retail Channel The Retail channel provides financial advisers and other institutions access to long-term savings and retirement products, through an open architecture investment platform. It aims to capitalize on the strong demand for advice, especially within the growing affluent population nearing and in retirement. Aegon UK offers a comprehensive proposition allowing advisers to manage their clients' long-term investments by offering equity trading, and a choice of over 4,500 investment options. Aegon UK is continuing to develop a strong range of own brand investment solutions and plans to extend them in 2023. Aegon UK provides a technology platform that supports advisers and their customers in managing their finances and is integrated with the back offices of the advisers. The aim is to create a primary platform relationship, which positions Aegon UK to receive the majority of new business flows from the adviser partner. Over 4,000 adviser firms have placed business with Aegon UK in the last year across a wide range of business models. These include leading wealth management firms, such as Chase De Vere, financial services networks, such as Quilter, and execution-only brokers. Nationwide Building Society has been an important partner for Aegon UK since the relationship was established in 2017. An important dimension of the Nationwide partnership is the inclusion of Aegon UK's own investment solutions. Aegon UK's investment in the retail channel focuses in two key areas: Delivering a program of enhancements to existing processes/journeys to drive value through existing adviser relationships. Transforming the user experience and core journeys for the core Aegon Retirement Choices/Aegon One Retirement offerings - this has been developed over the last two years and will be rolled out to advisers and customers during 2023 which will accelerate the pace of new proposition delivery. Protection Channel Aegon UK offers a range of products for Retail customers, including life cover, critical illness, and income protection available through financial advisers. The target market is wealthier customers over the age of 40, where Aegon UK's underwriting expertise helps it to provide a customer-centric proposition. In addition, Aegon UK offers a range of protection products for small to medium-sized companies that wish to insure key personnel, complementing the core offerings in the Workplace channel. Institutional Channel Aegon UK also participates in the institutional market in two areas where investment trading capability is provided to other parties who provide policy administration to the end-client: An institutional trading platform which powers 26 of the UK's leading platforms, wealth management firms, and investment houses (for example Brooks Macdonald and Charles Stanley). An investment-only proposition for Workplace pension schemes, which provides access to insured funds for approximately 140 clients. Competition In the Workplace market, Aegon UK provides employee benefits, engagement, and scheme governance. Competitors include Aviva, Legal & General and Willis Towers Watson. In the Retail market, Aegon UK aims to become the primary platform for intermediaries and competitors include Fidelity, Transact, and Quilter. Regulation and Supervision All relevant Aegon UK companies based in the U.K. are either: authorized by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA); or authorized and regulated by the Financial Conduct Authority (FCA), dependent on firm type. The Aegon Master Trust is subject to regulatory oversight by The Pensions Regulator. Scottish Equitable plc is authorized by the PRA and is subject to prudential regulation by the PRA and conduct regulation by the FCA. With effect from December 31, 2022, Aegon UK is also subject to group supervision at the level of Aegon UK plc under the U.K. Solvency II regulations as a result of the U.K. exit from the EU. International Aegon International consists of Aegon's three growth markets, Spain & Portugal, Brazil and China. It also includes Aegon's businesses in Central and Eastern Europe, the high-net-worth (HNW) life insurance company Transamerica Life Bermuda (TLB), and some smaller ventures in Asia. The company has presence in the Spanish insurance market. The activities in Spain (and Portugal) have developed largely through distribution partnerships with Spanish banks Banco Santander S.A. Organizational Structure The key lines of business within Aegon International are Spain & Portugal, TLB, China, and Brazil. The remaining business units are grouped in one category called 'Others' for reporting purposes. The corresponding principal subsidiaries and affiliates (including Aegon's ownership percentages, where relevant) are as follows: Spain and Portugal: Aegon España S.A.U. de Seguros y Reaseguros (Aegon España Insurance and Reinsurance); Santander Generales Seguros y Reaseguros S.A. (Santander General Insurance and Reinsurance) (51%); Santander Vida Seguros y Reaseguros S.A. (Santander Life Insurance and Reinsurance) (51%); Aegon Santander Portugal Não Vida-Companhia de Seguros S.A. (Aegon Santander Portugal Non-Life Insurance Co.) (51%); and Aegon Santander Portugal Vida-Companhia de Seguros de Vida S.A. (Aegon Santander Portugal Life Insurance Co.) (51%). TLB: Transamerica Life (Bermuda) Ltd. China: Aegon THTF Life Insurance Co., Ltd. (50%) in China. Brazil: Mongeral Aegon Seguros e Previdência S.A. (54.9%) and Sicoob Seguradora de Vida e Previdência S.A. (27.5%). Other Subsidiaries: Aegon Towarzystwo Ubezpiecze? na ?ycie Spó?ka Akcyjna (Aegon Poland Life); Aegon Powszechne Towarzystwo Emerytalne Spó?ka Akcyjna (Aegon Poland Pension Fund Management Co.); Aegon Pensii Societate de Administrare a Fondurilor de Pensii Private S.A (Aegon Romania Pension Administrator Co.); Aegon Life Insurance Company Ltd. (49%) in India; and Aegon Insights Ltd. Sales and Distribution Channels Aegon International distributes its products directly to consumers (online and/or physical branches) and via banks, brokers, (tied) agents, and other digital/ e-commerce partners. The sales and distribution channel mix varies per country, reflecting the differences in the local insurance markets. Spain & Portugal In Spain & Portugal, the life insurance and health products are sold by Santander Life Insurance and Reinsurance, whereas the non-life insurance (accident, home, unemployment, disability, critical illness dependency, and funeral) products are sold by Santander General Insurance and Reinsurance Company. Unicaja Bank S.A. was another bancassurance partner of Aegon up until 2022. On May 23, 2022, Aegon announced it had decided to sell its 50% stake in the Spanish insurance joint venture with Liberbank to Unicaja Banco. The sale of the 50% stake in the joint venture with Liberbank was completed in October 2022. Aegon España's own distribution channel offers life, health, and pension products. The network of brokers and agents accounts for approximately 80% of the total sales of the fully owned subsidiary, and the remaining 20% is generated by the direct channel. Central and Eastern Europe Distribution channels in Central and Eastern Europe (CEE) are dominated by tied and external agents, as well as brokers. In Romania, the company's main distribution channel is bancassurance, where it has partnerships with Banca Transilvania and Alpha Bank. TLB and Aegon Insights Transamerica Life Bermuda (TLB) distributes its life insurance products to high-net-worth (HNW) customers through targeted distribution relationships with selected local and international brokers, financial advisors, and via bancassurance channels. With its singular focus on the HNW segment, TLB has extensive experience in handling large sums assured and complex cases supporting HNW customers' legacy and business planning needs. In October 2022, TLB reinsured its closed block of universal life (UL) insurance with Transamerica. Transamerica will manage this block as a financial asset, while TLB will continue to write new business on a selective basis. Aegon Insights is a marketing, distribution, and administration services business operating in Asia Pacific. It primarily works with local insurers to develop tailored solutions to specific needs. The revenue is generated through underwriting reinsurance agreements and fee income. With changes in consumer preferences, Aegon made the strategic decision to discontinue Aegon Insights' new business acquisition, while continuing to provide services to the existing customer base in Australia, Hong Kong, Indonesia, and Japan. China: Aegon THTF Aegon operates in China through a joint venture with Tongfang Co. Ltd., Aegon THTF Life Insurance Co., Ltd. (Aegon THTF). The joint venture is licensed to sell life insurance, annuity, accident and health products in China. The company has expanded its network of branches, primarily in the coastal provinces of Eastern China. It has access to a potential market of approximately 700 million people. Aegon THTF follows a multi-channel distribution strategy, including agency, brokers, banks, group sales and digital e-commerce platforms. India: Aegon Life Aegon operates in India through its joint venture with Bennett, Coleman & Co. Ltd. (BCCL). The joint venture, Aegon Life Insurance Company, Ltd. (Aegon Life) has a mobile and digital consumer model, working through large-scale digital partners since December 2020. Brazil: MAG Seguros In Brazil, the joint venture has two major insurance companies generating revenue streams, Mongeral Aegon Group (MAG Seguros) and Sicoob Seguradora de Vida e Previdência S.A. Together, they have 6 million clients in 2022. More than half of MAG Seguros' annual new premium is sold by home-recruited individual brokers and market life insurance specialists, hosted in a proprietary environment called Sales Rooms. The independent investment agents are the second-largest distribution model, selling mostly term and whole life policies. The rest is spread among individual and/or group life products distributed through large brokerage firms, digital direct sales, and partners/cooperatives, including affinities and credit life in B2B2C models. Sicoob Seguradora de Vida e Previdência S.A. distributes individual, group and credit life protection products in a bancassurance model through affiliate agencies to its cooperative associates. Business Lines Aegon International focuses on serving retail customers with individual life and different types of general, accident, and health insurances. Life Insurance, Savings and Protection Spain & Portugal's life insurance business consists of life savings and individual and group protection products, where individual life-risk and health products form the larger part of the business. Customers' savings needs are serviced by Aegon España through its affiliates, offering universal life and unit-linked products. Protection business, pursued both in Spain & Portugal, includes primarily life, health, accident, and disability cover distributed through the joint ventures and Aegon España's own channels. These products can typically be complemented with critical illness, income protection, and other riders. In Poland, Aegon focuses on unit-linked and traditional life products. The Romanian branch sells term life insurance policies with guaranteed interest, with or without a profit-sharing component. In Asia, Aegon provides a broad range of life insurance products, including unit-linked, universal life, and traditional life products. Over the past year, TLB has updated and diversified its product suite. Along with its enhanced flagship product of Universal Life Alpha Pro & Pro Century, its offerings include the Genesis Indexed Universal Life (IUL) product, that provides a lower guarantee combined with a greater wealth accumulation potential, and the Trendsetter Ultra Term Life, designed for HNW personal and business protection. In China, regular premium whole life products with increasing sum assured, whole life products with level sum assured, and whole life critical illness products are key products for many channels, such as agencies, banks, and brokers. Products, such as participating annuity and endowment (via agency) are also offered. Single premium endowment is the key product offered in the banks channel, while the digital channel focuses on offering protection products, such as term life. In India, Aegon Life offers Group term plans, individual term plans, and unit-linked life insurance plans. In Brazil, most of the new businesses of MAG Seguros are individual life-risk products. The greater part of them are whole life or yearly renewable policies without cash value with riders, such as temporary disability, critical illness, surgeries, or home services. Sicoob Seguradora sells individual and credit life policies. Both companies offer group life solutions for corporate markets. Health Insurance Health insurance is primarily offered as riders on life insurance policies in Spain and China and as a standalone health insurance in Spain. In Spain, health insurance is offered through Aegon's own channels and through Santander's branches. Aegon collaborates with medical partners across the country. In Portugal, it is also offered through Santander Totta's distribution network. Aegon THTF offers various kinds of health insurance, such as middle-end medical reimbursement, and short-term critical illness, mainly through agencies, brokers, banks, digital, and group channels. In Brazil, MAG Seguros has developed a segment of portfolio within its life insurance operation called 'Well being Pillar' aimed a target market of 100 million people underserved by public health and people that cannot afford a private health plan in Brazil. The main products offered are protection for disabilities - both permanent or temporary - critical illness, surgeries, services, such as online medical consultations, and network of pharmacies discounts. Pensions As of December 31, 2022, Aegon managed the savings of approximately three million pension fund members in Spain and the CEE. In Spain, customers' pension saving needs are serviced by Aegon España through its managed pension funds. Aegon's pension business in Central and Eastern Europe (CEE) was impacted by reforms to the pension system during the past years. In 2022, Aegon was active in the private pension market in Poland and Romania. In Brazil, the joint venture operates pensions throughout several strategies. Its main company, MAG Seguros, partners with existing pension funds and offers embedded life and disabilities insurance within the pension funds' new enrollee application form. MAG Seguros is leader in this segment. General Insurance Aegon España has been offering general insurance products, mainly household protection, unemployment, accident, dependency, and funeral insurance, since 2013 through its joint ventures with Banco Santander. Aegon THTF in China also offers short-term accident products. Aegon España is the exclusive provider of protection products to Banco Santander. Competition TLB's competitors in Asia have mainly been other global life insurance providers, such as HSBC Life, Manulife Bermuda, and Sun Life Bermuda. Regulation and Supervision Transamerica Life (Bermuda) Ltd (TLB) is incorporated in Bermuda and regulated by the Bermuda Monetary Authority, the Regulator of the financial services sector in Bermuda. In addition, various regulators also keep oversight of activities undertaken by entities licensed by Aegon Insights. These regulators include the Australian Securities and Investments Commission in Australia, and the Hong Kong Insurance Authority. Aegon Asset Management Aegon Asset Management (Aegon AM) is an active global investor. Its 390 investment professionals manage and advise on assets for a global client base of pension plans, public funds, insurance companies, banks, wealth managers, family offices, and foundations. Aegon AM provides investment management expertise to institutional and private investors around the world. It has offices in the United States, the Netherlands, the United Kingdom, China, Germany, Hungary, and Spain. Its investment capabilities are focused around four investment platforms, each with asset-class expertise: fixed income, real assets, equities, and multi-asset and solutions. Across these platforms, there is a common belief in fundamental, research-driven active management, underpinned by a focus on risk management and a strong commitment to responsible investing. Further to these investment platform, Aegon AM also operates a fiduciary business. By organizing its investment teams globally, Aegon AM harnesses its expertise and research resources across regional boundaries. Aegon AM believes this enhances performance potential and generates better investment outcomes for clients. The four investment platforms are led globally by two chief investment officers who are part of the Global Board of Aegon AM. Aegon AM also has a Fiduciary services and multi-manager business in the Netherlands. Aegon AM holds two key strategic partnerships: In China, Aegon AM owns 49% of Aegon Industrial Fund Management Company (AIFMC), a Shanghai-based asset manager that offers mutual funds, segregated accounts, and advisory services. In France, Aegon AM owns 25% of La Banque Postale Asset Management (LBPAM). LBPAM offers a comprehensive range of investment strategies to French institutional clients and to retail investors through La Banque Postale group's retail banking network and affiliated insurance company Caisse Nationale de Prevoyance (CNP). Aegon AM's main entities are Aegon USA Investment Management LLC, Aegon USA Realty Advisors LLC, Aegon Investment Management B.V., Aegon Asset Management UK plc, and Aegon Investment Management (Shanghai) Ltd. (a wholly foreign-owned enterprise). On October 27, 2022, Aegon agreed an exclusive long-term partnership with ASR Nederland N.V. (a.s.r.) to manage the illiquid investments that are part of the general account of the combined businesses, subject to regulatory approvals. In addition, it will continue to be the asset manager for the investments of Aegon Cappital's PPI proposition and will take over the management of a.s.r.'s mortgage funds. Through these steps, Aegon AM will further strengthen its position as a provider in the Dutch market of fiduciary services, retirement multi-assets and solutions, fixed income, including alternative fixed-income investments and responsible investing. Sales and Distribution Channels Aegon AM uses both institutional and wholesale distribution channels combining a global perspective with a focus on local relationships in the Americas, Europe and Asia. Client types include banks, pensions funds, insurance companies, fiduciary managers and Outsourced Chief Investment Officers (OCIO's), family offices, investment consultants, wealth managers, charities, foundations, and endowments, third-party investment platforms, as well as its affiliated companies and joint ventures. Business Lines Aegon AM has three distinct business lines: Third-party business accounts for approximately 48% of its Assets under Management (AuM) as of December 31, 2022. The main sources for this include third-party business where Aegon AM distributes its investment strategies directly to its clients. The wholesale businesses typically sell collective investment vehicles to customers through wholesale distributors and independent intermediaries. The institutional businesses typically sell their services to large insurance companies, fiduciary managers, and OCIOs and pension funds. Aegon AM manages a full range of asset classes and manages the strategies against objectives, targets and risk profiles agreed with clients. It offers both absolute and relative return products. Affiliates also source third-party business in areas where Aegon AM manages funds for Aegon insurers and retirement companies approximately 21%. These funds have various legal structures and performance is usually measured against a benchmark or peer group. The main asset classes include fixed income, equities, real estate, and multi-asset. Aegon AM manages the general account derivatives book of Aegon the Netherlands until the closing of the a.s.r partnership after which this activity will be transitioned to a.s.r. Competition In mainland China, Aegon Industrial Fund Management Company (AIFMC) focuses on Chinese equity, fixed income, multi-asset and money market strategies. It competes against a wide range of locally based asset managers, including Alibaba's Yuebao fund, China Universal Asset Management, E Fund Management, Fullgoal Fund Management, and Yinhua Fund Management. In France, La Banque Postale Asset Management services private investors through La Banque Postale's retail banking network, representing LBPAM and Aegon AM-advised strategies. Regulation and Supervision Aegon Asset Management UK is also regulated by the SEC for its activities in the U.S. market. Aegon Hungary AM is supervised by the National Bank of Hungary. Acquisitions On February 28, 2022, Transamerica acquired 100% equity interest in TAG Resources, LLC (TAG) Dispositions On October 14, 2022, Aegon completed the divestment of its 50% stake in the Spanish insurance joint venture with Liberbank to Unicaja Banco. On October 27, 2022, Aegon announced it has reached an agreement with a.s.r. to combine its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r. On January 17, 2023, the Extraordinary General Meeting of shareholders (EGM) of Aegon N.V. has approved the proposed transaction. On March 23, 2022, and on April 21, 2022, Aegon completed the divestment of its Hungarian and Turkish businesses to Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG). History Aegon N.V. was founded in 1844.