XML 183 R36.htm IDEA: XBRL DOCUMENT
v3.20.1

Intangible assets | 12 Months Ended
--- | ---
Dec. 31, 2019
Text block [abstract] |
Intangible assets | 29 Intangible assets
Net book value |  | Goodwill |  |  | VOBA |  |  | Future servicing rights |  |  | Software |  |  | Other |  |  | Total |
At December 31, 2019 |  |  | 392 |  |  |  | 952 |  |  |  | 84 |  |  |  | 69 |  |  |  | 61 |  |  |  | 1,559 |
At December 31, 2018 |  |  | 384 |  |  |  | 1,123 |  |  |  | 91 |  |  |  | 64 |  |  |  | 64 |  |  |  | 1,727 |
At January 1, 2018 |  |  | 293 |  |  |  | 1,153 |  |  |  | 99 |  |  |  | 51 |  |  |  | 36 |  |  |  | 1,633 |
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At January 1, 2019 |  |  | 554 |  |  |  | 6,858 |  |  |  | 361 |  |  |  | 327 |  |  |  | 166 |  |  |  | 8,265 |
Additions |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 35 |  |  |  | 4 |  |  |  | 39 |
Capitalized subsequent expenditure |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 7 |  |  |  | - |  |  |  | 7 |
Disposals |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (9 | ) |  |  | - |  |  |  | (9 | )
Net exchange differences |  |  | 13 |  |  |  | 145 |  |  |  | 5 |  |  |  | 11 |  |  |  | 3 |  |  |  | 178 |
At December 31, 2019 |  |  | 567 |  |  |  | 7,003 |  |  |  | 366 |  |  |  | 371 |  |  |  | 173 |  |  |  | 8,479 |
Accumulated amortization, depreciation and impairment losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At January 1, 2019 |  |  | 169 |  |  |  | 5,735 |  |  |  | 270 |  |  |  | 263 |  |  |  | 101 |  |  |  | 6,538 |
Amortization through income statement |  |  | - |  |  |  | 112 |  |  |  | 8 |  |  |  | 16 |  |  |  | 7 |  |  |  | 143 |
Shadow accounting adjustments |  |  | - |  |  |  | 72 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 72 |
Disposals |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (7 | ) |  |  | - |  |  |  | (7 | )
Impairment losses |  |  | 3 |  |  |  | 11 |  |  |  | - |  |  |  | 20 |  |  |  | - |  |  |  | 34 |
Net exchange differences |  |  | 3 |  |  |  | 121 |  |  |  | 4 |  |  |  | 9 |  |  |  | 3 |  |  |  | 140 |
At December 31, 2019 |  |  | 175 |  |  |  | 6,051 |  |  |  | 282 |  |  |  | 301 |  |  |  | 111 |  |  |  | 6,920 |
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At January 1, 2018 |  |  | 462 |  |  |  | 6,565 |  |  |  | 359 |  |  |  | 294 |  |  |  | 128 |  |  |  | 7,808 |
Additions |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 45 |  |  |  | 2 |  |  |  | 47 |
Acquisitions through business combinations |  |  | 85 |  |  |  | - |  |  |  | - |  |  |  | 7 |  |  |  | 33 |  |  |  | 126 |
Capitalized subsequent expenditure |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5 |  |  |  | - |  |  |  | 5 |
Disposals |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (19 | ) |  |  | - |  |  |  | (19 | )
Net exchange differences |  |  | 6 |  |  |  | 293 |  |  |  | 2 |  |  |  | (6 | ) |  |  | 2 |  |  |  | 298 |
At December 31, 2018 |  |  | 554 |  |  |  | 6,858 |  |  |  | 361 |  |  |  | 327 |  |  |  | 166 |  |  |  | 8,265 |
Accumulated amortization, depreciation and impairment losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At January 1, 2018 |  |  | 169 |  |  |  | 5,412 |  |  |  | 260 |  |  |  | 243 |  |  |  | 92 |  |  |  | 6,176 |
Amortization through income statement |  |  | - |  |  |  | 135 |  |  |  | 8 |  |  |  | 16 |  |  |  | 6 |  |  |  | 165 |
Shadow accounting adjustments |  |  | - |  |  |  | (56 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (56 | )
Disposals |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (6 | ) |  |  | - |  |  |  | (6 | )
Impairment losses |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 15 |  |  |  | - |  |  |  | 15 |
Net exchange differences |  |  | - |  |  |  | 244 |  |  |  | 2 |  |  |  | (5 | ) |  |  | 3 |  |  |  | 243 |
At December 31, 2018 |  |  | 169 |  |  |  | 5,735 |  |  |  | 270 |  |  |  | 263 |  |  |  | 101 |  |  |  | 6,538 |
Amortization and depreciation through income statement is included in Commissions and expenses. None of the intangible assets have titles that are restricted or have been pledged as security for liabilities. With the exception of goodwill, all intangible assets have a finite useful life and are amortized accordingly. VOBA and future servicing rights are amortized over the term of the related insurance contracts, which can vary significantly depending on the maturity of the acquired portfolio. The amortization is based on either the expected future premiums, revenues or the expected gross profit margins, which for the most significant blocks of business ranges between 50 and 80 years. Future servicing rights are amortized over a period of 10 to 30 years of which 15 years remain at December 31, 2019 (2018: 13 years). Software is generally depreciated over an average period of 3 to 5 years of which 4 years remain at December 31, 2019 (2018: 4 years). In 2018, Goodwill and Other increased by EUR 85 million and EUR 33 million respectively following the acquisition of Robidus in September 2018. For details of the acquisition, refer to note 48 Business combinations. Goodwill The goodwill balance has been allocated across the cash-generating units which are expected to benefit from the synergies inherent in the goodwill. Goodwill is tested for impairment both annually and when there are specific indicators of a potential impairment. The recoverable amount is the higher of the value in use and fair value less costs of disposal for a cash-generating unit. The operating assumptions used in all the calculations are best estimate assumptions and based on historical data where available. The economic assumptions used in all the calculations are based on observable market data and projections of future trends. All the cash-generating units tested showed that the recoverable amounts were higher than their carrying values, including goodwill. A reasonably possible change in any key assumption is not expected to cause the carrying value of the cash-generating units to exceed its recoverable amount. A geographical summary of the cash-generating units to which the goodwill is allocated is as follows:
Goodwill |  | 2019 |  |  | 2018 |
Americas |  |  | 183 |  |  |  | 182 |
Southern & Eastern Europe |  |  | 29 |  |  |  | 30 |
Asset Management |  |  | 34 |  |  |  | 33 |
United Kingdom |  |  | 57 |  |  |  | 54 |
The Netherlands |  |  | 89 |  |  |  | 85 |
At December 31 |  |  | 392 |  |  |  | 384 |
Goodwill in Aegon Americas is allocated to groups of cash-generating units including variable annuities, fixed annuities and the retirement plans cash-generating unit. Value in use calculations of Aegon Americas have been actuarially determined based on business plans covering a period of typically three years and pre-tax risk adjusted discount rates. Based on the value in use tests, goodwill in the Americas for the group of annuities cash-generating units (2019: EUR 127 million: 2018: EUR 127 million) and the retirement plans cash-generating unit (2019: EUR 56 million: 2018: EUR 55 million) remain unchanged from prior year except for the impact of currency translation adjustments. The value in use tests assume business plans covering a period of three years further extrapolated to ten years, where the new business levels for years 4-10 assumed a 0% growth rate (2018: 0%). The pre-tax adjusted discount rate was 17% for annuities and 18% for retirement plans. To determine the recoverable amounts of the cash generating units of Aegon Southern and Eastern Europe (SEE), value in use was calculated, and compared to the carrying amounts. Value in use has been determined based on a business plan covering a period of typically 3 years, that, in certain instances was further extrapolated to 20 years where the new business levels for years 4-20 assumed a growth rate based on the business plan of the third year, prudentially decreased by 20% (2018: 20%). Other key assumptions used for the calculation were pre-tax risk adjusted discount rate of ranging between 8.6%-25.2% (2018: 9.1%-28.5%), new business contribution, renewals, asset fees, investment return, persistency and expenses. Operating assumptions are best estimate assumptions and based on historical data where available. Economic assumptions are based on observable market data and projections of future trends. As of 2018, goodwill that was provisionally allocated to the cash-generating unit – Cofunds Ltd., is allocated to Aegon UK, whose value in use exceeded its carrying value. Assessment of value in use at this level is considered to reflect the expected benefit flowing to Aegon UK from the synergies arising from the acquisition of Cofunds. The value in use of Scottish Equitable plc (SE plc) is the most material part of the Aegon UK value in use calculation, and it is determined using SE plc’s Solvency II own funds value with adjustments for contract boundaries, risk margin and SE plc’s share of the defined benefit pension scheme liability. An allowance has also been made for the present value of the next 3 years profits, from expected new business. This is considered a key assumption which if it does not arise would reduce the value in use, however a headroom would still remain. For Aegon the Netherlands, goodwill was allocated to Robidus - a cash generating unit whose value in use exceeds its carrying value. The value in use calculations were based on business plans covering a period of five years, pre-tax discount rate of 8.2%, post-tax discount rate of 8.1%, and terminal growth rate at 2%. The goodwill arises mainly from new customers, future software platform developments, synergies, and assembled workforce. VOBA The movement in VOBA over 2019 can be summarized and compared to 2018 as follows:
|  | 2019 |  |  | 2018 |
At January 1 |  |  | 1,123 |  |  |  | 1,153 |
Amortization / depreciation through income statement |  |  | (112 | ) |  |  | (135 | )
Shadow accounting adjustments |  |  | (72 | ) |  |  | 56 |
Impairment losses |  |  | (11 | ) |  |  | - |
Net exchange differences |  |  | 24 |  |  |  | 49 |
At December 31 |  |  | 952 |  |  |  | 1,123 |

X
- Definition Text block [abstract] + References No definition available. + Details
Name: | aeg_TextBlockAbstract
Namespace Prefix: | aeg_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 38 -IssueDate 2019-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=38&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IAS38_g118-128_TI -URIDate 2019-03-27 + Details
Name: | ifrs-full_DisclosureOfIntangibleAssetsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration