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Shareholders' equity

12 Months Ended

Dec. 31, 2019

30 Shareholders’ equity

Issued share capital and reserves attributable to shareholders of Aegon N.V.



	Note		2019			2018			2017
Share capital – par value		30.1		323			322			322
Share premium		30.2		7,213			7,487			7,731
Total share capital				7,536			7,808			8,053
Retained earnings				10,667			9,995			9,699
Treasury shares		30.3		(281	)		(337	)		(325	)
Total retained earnings				10,386			9,657			9,374
Revaluation reserves		30.4		5,868			3,436			4,898
Remeasurement of defined benefit plans		30.5		(2,397	)		(1,850	)		(1,669	)
Other reserves		30.6		456			149			(390	)
Total shareholders’ equity				21,850			19,200			20,266



Share capital transactions relating to common shares	2019			2018			2017
	Number of shares (thousands)			Number of shares (thousands)			Number of shares (thousands)
Transactions in 2019:
Final dividend 2018 1)		(32,874	)
Share buyback program (final divi d end 2018)		32,874
Interim dividend 2019 1)		(35,370	)
Share buyback program (interim dividend 2019)		43,150

Transactions in 2018:
Final dividend 2017 1)					(21,954	)
Share buyback program (final dividend 2017)					21,954
Interim dividend 2018 1)					(24,134	)
Share buyback program (interim dividend 2018)					24,134

Transactions in 2017:
Final dividend 2016 1)								(26,916	)
Interim dividend 2017 2)								(24,948	)
Issuance of common shares with a par value of EUR 0.12								21,099
Share buyback program (final dividend 2016 and interim dividend 2017)								51,865

1	Dividend distribution paid from treasury shares (note 30.3)

2	Dividend distribution paid from treasury shares (note 30.3) and issuance of common shares performed in the year.

30.1 Share capital – par value



	2019		2018		2017
Common shares		253		251		251
Common shares B		70		70		70
At December 31		323		322		322


Common shares	2019		2018		2017
Authorized share capital		720		720		720
Number of authorized shares (in million)		6,000		6,000		6,000
Par value in cents per share		12		12		12


Common shares B	2019		2018		2017
Authorized share capital		360		360		360
Number of authorized shares (in million)		3,000		3,000		3,000
Par value in cents per share		12		12		12


	Common shares				Common shares B
	Number of shares (thousands)		Total amount		Number of shares (thousands)		Total amount
At January 1, 2017		2,074,549		249		585,022		70
Dividend		21,099		3		-		-
At December 31, 2017		2,095,648		251		585,022		70
Dividend		-		-		-		-
At December 31, 2018		2,095,648		251		585,022		70
Dividend		9,491		1		-		-
At December 31, 2019		2,105,139		253		585,022		70

The table below represents weighted average number of c

mmon shares including treasury shares attributable to Aegon N.V.:


	Weighted average number of common shares (thousands)		Weighted average number of common shares B (thousands)
2017		2,080,792		585,022
2018		2,095,648		585,022
2019		2,098,326		585,022

All issued common shares and common shares B each have a nominal value of EUR 0.12 and are fully paid up. Repayment of capital can only be initiated by the Executive Board, is subject to approval of the Supervisory Board and must be resolved by the General Meeting of Shareholders. Moreover, repayment on common shares B needs approval of the related shareholders. Refer to ‘Other information’ for further information on dividend rights.

Vereniging Aegon, based in The Hague, the Netherlands, holds all of the issued and outstanding common shares B.

Under the terms of the 1983 Amended Merger Agreement, dated May 2013, Vereniging Aegon has a call option relating to common shares B. Vereniging Aegon may exercise its call option at fair value of a common share B (being 1/40

of the market value of a common share in the capital of the Company at the time of issuance) to keep or restore its total stake at 32.6%, irrespective of the circumstances which cause the total shareholding to be or become lower than 32.6%. Refer to Note 50 Related party transactions for transactions between Aegon N.V. and Vereniging Aegon.

30.2 Share premium



	2019			2018			2017
At January 1		7,487			7,731			7,873
Share dividend		(273	)		(244	)		(142	)
At December 31		7,213			7,487			7,731
Share premium relating to:
- Common shares		5,560			5,834			6,078
- Common shares B		1,653			1,653			1,653
Total share premium		7,213			7,487			7,731

The share premium account reflects the balance of

paid-in

amounts above par value at issuance of new shares less the amounts charged for share dividends.

30.3 Treasury shares

On the reporting date, Aegon N.V. and its subsidiaries held 66,583,671 (2018: 62,562,070) of its own common shares and 25,309,920 (2018: 13,856,480) own common shares B with a par value of EUR 0.12 each.

Movements in the number of treasury common shares held by Aegon N.V. were as follows:



	2019						2018						2017
	Number of shares (thousands)			Amount			Number of shares (thousands)			Amount			Number of shares (thousands)			Amount
At January 1		61,418			326			64,488			314			47,473			178

Transactions in 2019:
Sale: transactions, average price 5.10		(3,657	)		(19	)
Sale: 1 transaction, average price 5.25		(32,874	)		(173	)
Purchase: 1 transaction average price 4.52		32,874			149
Sale: 1 transaction, average price 5.16		(35,370	)		(183	)
Purchase: 1 transaction average price 3.89		43,150			168

Transactions in 2018:
Sale: transactions, average price 3.76								(3,070	)		(12	)
Sale: 1 transaction, average price 4.62								(21,954	)		(101	)
Purchase: 1 transaction average price 5.34								21,954			117
Sale: 1 transaction, average price 5.09								(24,134	)		(123	)
Purchase: 1 transaction average price 5.43								24,134			131

Transactions in 2017:
Sale: transactions, average price EUR 3.44														(4,085	)		(14	)
Sale: 1 transaction, average price EUR 3.68														(26,916	)		(99	)
Sale: 1 transaction, average price EUR 3.77														(3,849	)		(14	)
Purchase: 1 transaction, average price EUR 5.09														51,865			263
At December 31		65,540			269			61,418			326			64,488			314

Movements in the number of treasury common shares B held by Aegon N.V. were as follows:



	2019					2018					2017
	Number of shares (thousands)			Amount		Number of shares (thousands)			Amount		Number of shares (thousands)			Amount
At January 1		13,856			2		15,346			2		17,325			2

Transactions in 2019:
Sale: 1 transaction, average price 0.12		(1,774	)		-
Purchase: 1 transaction average price 0.10		13,227			1

Transactions in 2018:
Sale: 1 transaction, average price EUR 0.11							(1,489	)		-

Transactions in 2017:
Sale: 1 transaction, average price EUR 0.11												(1,979	)		-
Sale: 1 transaction, average price EUR 0.11												(13,043	)		(1	)
Purchase: 1 transaction, average price EUR 0.13												13,043			2
At December 31		25,310			3		13,856			2		15,346			2

As part of their insurance and investment operations, subsidiaries within the Group also hold Aegon N.V. common shares, both for their own account and for account of policyholders. These shares have been treated as treasury shares and are (de)recognized at the consideration paid or received.



	2019				2018				2017
	Number of shares (thousands)		Total amount		Number of shares (thousands)		Total amount		Number of shares (thousands)		Total amount
Common shares
Held by Aegon N.V.		65,540		269		61,418		326		64,488		314
Held by subsidiaries		1,043		9		1,144		9		1,162		9
Common shares B
Held by Aegon N.V.		25,310		3		13,856		2		15,346		2
At December 31		91,893		281		76,419		337		80,996		325


	Weighted average number of treasury shares, including treasury shares held by subsidiaries (thousands)		Weighted average number of treasury shares B (thousands)
2017		38,490		9,841
2018		60,129		14,415
2019		56,467		13,070

30.4 Revaluation reserves


	Available-for-sale investments			Real estate held for own use			Cash flow hedging reserve			Total
At January 1, 2019		1,910			46			1,479			3,436
Gross revaluation		3,470			(4	)		89			3,556
Net (gains) / losses transferred to income statement		(412	)		-			(97	)		(509	)
Net (gains) / losses transferred to retained earnings		-			(32	)		-			(32	)
Foreign currency translation differences		8			1			27			37
Tax effect		(630	)		8			3			(619	)
At December 31, 2019		4,348			19			1,502			5,868

At January 1, 2018		3,427			68			1,402			4,898
Gross revaluation		(2,142	)		(32	)		85			(2,090	)
Net (gains) / losses transferred to income statement		66			-			(80	)		(14	)
Foreign currency translation differences		46			2			71			119
Tax effect		514			7			1			522
Other		-			-			-			1
At December 31, 2018		1,910			46			1,479			3,436

At January 1, 2017		3,326			59			1,904			5,289
Gross revaluation		1,403			8			(115	)		1,296
Net (gains) / losses transferred to income statement		(1,330	)		-			(738	)		(2,069	)
Foreign currency translation differences		(228	)		(8	)		(216	)		(452	)
Tax effect		285			9			567			860
Other		(28	)		-			1			(27	)
At December 31, 2017		3,427			68			1,402			4,898

The revaluation accounts for both

available-for-sale

investments and for real estate held for own use include unrealized gains and losses on these investments, net of tax. Upon sale, the amounts realized are recognized in the income statement (for

available-for-sale

investments) or transferred to retained earnings (for real estate held for own use). Upon impairment, unrealized losses are recognized in the income statement.

The closing balances of the revaluation reserve for

available-for-sale

investments relate to the following instruments:



	2019			2018			2017
Shares		25			22			40
Debt securities		4,348			1,911			3,401
Other		(26	)		(23	)		(14	)
Revaluation reserve for available-for-sale investments		4,348			1,910			3,427

The cash flow hedging reserve includes (un)realized gains and losses on the effective portions of hedging instruments, net of tax. The amounts are recognized in the income statement at the moment of realization of the hedged position to offset the gain or loss from the hedged cash flow. No amounts have been released from equity to be included in the initial measurement of

non-financial

assets or liabilities.

30.5 Remeasurement of defined benefit plans



	2019			2018			2017
At January 1		(1,850	)		(1,669	)		(1,820	)
Remeasurements of defined benefit plans		(612	)		(134	)		224
Tax effect		90			(15	)		(175	)
Net exchange differences		(25	)		(32	)		102
Total remeasurement of defined benefit plans		(2,397	)		(1,850	)		(1,669	)

30.6 Other reserves


	Foreign currency translation reserve			Net foreign investment hedging reserve			Equity movements of joint ventures and associates			Total
At January 1, 2019		499			(370	)		19			149
Movement in foreign currency translation and net foreign investment hedging reserves		312			(10	)		-			302
Disposal of a business		(1	)		-			-			(1	)
Tax effect		(10	)		5			-			(5	)
Equity movements of joint ventures		-			-			8			8
Equity movements of associates		-			-			4			4
At December 31, 2019		800			(374	)		31			456

At January 1, 2018		(80	)		(321	)		11			(390	)
Movement in foreign currency translation and net foreign investment hedging reserves		562			(46	)		(3	)		513
Disposal of a business		50			(14	)		-			36
Tax effect		(32	)		12			-			(20	)
Equity movements of joint ventures		-			-			8			8
Equity movements of associates		-			-			2			2
Other		-			-			1			1
At December 31, 2018		499			(370	)		19			149

At January 1, 2017		1,734			(418	)		31			1,347
Movement in foreign currency translation and net foreign investment hedging reserves		(1,929	)		129			-			(1,800	)
Disposal of a business		7			-			-			7
Tax effect		108			(32	)		-			76
Equity movements of joint ventures		-			-			(15	)		(15	)
Equity movements of associates		-			-			(5	)		(5	)
At December 31, 2017		(80	)		(321	)		11			(390	)

The foreign currency translation reserve includes the currency results from investments in

non-euro

denominated subsidiaries. The amounts are released to the income statement upon the sale of the subsidiary.

The net foreign investment hedging reserve is made up of gains and losses on the effective portions of hedging instruments, net of tax. The amounts are recognized in the income statement at the moment of realization of the hedged position to offset the gain or loss from the net foreign investment.

The equity movements of joint ventures and associates reflect Aegon’s share of changes recognized directly in the joint venture’s and associate’s equity.

Aegon N.V [member]

Statement [LineItems]

Shareholders' equity

13 Shareholders’ equity


	Share capital		Paid - in surplus			Revaluation account			Legal reserves FCTR		Legal reserves group companies		Retained earnings			Remeasurement of defined benefit plans of group companies			Treasury shares			Net income/(loss)			Total
At January 1, 2019 1)		322		7,486			3,540			130		1,326		7,872			(1,850	)		(337	)		710			19,200
Mandatory change in accounting policy		-		-			-			-		-		(44	)		-			-			-			(44	)
At January 1, 2019 (restated)		322		7,486			3,540			130		1,326		7,828			(1,850	)		(337	)		710			19,156

Net income 2018 retained		-		-			-			-		-		710			-			-			(710	)		-
Net income 2019		-		-			-			-		-		-			-			-			1,239			1,239
Total net income / (loss)		-		-			-			-		-		710			-			-			529			1,239

Foreign currency translation differences and movement in foreign investment hedging reserves		-		-						296		-		-			(25	)		-			-			271
Changes in revaluation subsidiaries		-		-			2,460			-		-		-			-			-			-			2,460
Changes in revaluation reserve real estate held for own use		-		-			(28	)		-		-		25												(3	)
Remeasurement of defined benefit plans of group companies		-		-			-			-		-		-			(522	)		-			-			(522	)
Changes and transfer to legal reserve		-		-			143			-		377		(509	)		-			-			-			11
Other		-		-			-			-		-		15			-			-			-			15
Other comprehensive income / (loss)		-		-			2,576			296		377		(469	)		(547	)		-			-			2,234

Shares issued		1		-			-			-		-		-			-			-			-			1
Dividends paid on common shares		-		(273	)		-			-		-		(309	)		-			-			-			(583	)
Issuance and purchase of treasury shares		-		-			-			-		-		(86	)		-			56			-			(30	)
Issuance and redemption of other equity instruments		-		-			-			-		-		(81	)		-			-			-			(81	)
Coupons on perpetual securities		-		-			-			-		-		(88	)		-			-			-			(88	)
Incentive plans		-		-			-			-		-		2			-			-			-			2
At December 31, 2019		323		7,213			6,116			426		1,703		7,508			(2,397	)		(281	)		1,239			21,850

1	See in consolidated financial statements note 2.1.1 for details about the impact of adopting IFRS 16 on Leases and note 2.1.2 for details about the impact of voluntary change in accounting policy on Liability Adequacy Testing


	Share capital		Paid - in surplus			Revaluation account			Legal reserves FCTR			Legal reserves group companies		Retained earnings			Remeasurement of defined benefit plans of group companies			Treasury shares			Net income/(loss)			Total
At January 1, 2018		322		7,731			5,017			(401	)		1,122		6,022			(1,669	)		(325	)		2,469			20,287
Changes in accounting policies related to liability adequancy testing		-		-			(22	)		-			-		-			-			-			-			(22	)
At January 1, 2018 (restated) 1)		322		7,731			4,995			(401	)		1,122		6,022			(1,669	)		(325	)		2,469			20,265

Net income 2017 retained		-		-			-			-			-		2,469			-			-			(2,469	)		-
Net income 2018		-		-			-			-			-		-			-			-			710			710
Total net income / (loss)		-		-			-			-			-		2,469			-			-			(1,759	)		710

Foreign currency translation differences and movement in foreign investment hedging reserves		-		-			-			531			-		-			(32	)		-			-			499
Changes in revaluation subsidiaries		-		-			(1,462	)		-			-		-			-			-			-			(1,462	)
Remeasurement of defined benefit plans of group companies		-		-			-			-			-		-			(150	)		-			-			(150	)
Changes and transfer to legal reserve		-		-			7			-			204		(202	)		-			-			-			9
Other		-		-			-			-			-		(3	)		-			-			-			(3	)
Other comprehensive income / (loss)		-		-			(1,455	)		531			204		(205	)		(182	)		-			-			(1,108	)

Dividend common shares		-		(244	)		-			-			-		(329	)		-			-			-			(573	)
Dividend withholding tax reduction		-		-			-			-			-		1			-			-			-			1
Treasury shares		-		-			-			-			-		26			-			(12	)		-			14
Coupons and premium on convertible core capital securities and coupon on perpetual securities, net of tax		-		-			-			-			-		(113	)		-			-			-			(113	)
At December 31, 2018		322		7,486			3,540			130			1,326		7,872			(1,850	)		(337	)		710			19,200

1	See in consolidated financial statements note 2.1.2 for details about the impact of voluntary change in accounting policy on Liability Adequacy Testing

The balance of the revaluation account, which includes revaluation reserves for real estate and investments that do not have a frequent market listing, consisted of EUR 6,438 million (2018: EUR 4,434 million) of items with positive revaluation and of EUR 323 million (2018: EUR 895 million) of items with negative revaluation.

The legal reserves in respect of the foreign currency translation reserve (FCTR), group companies and the revaluation reserves, cannot be freely distributed. In case of negative balances for individual reserves legally to be retained, no distributions can be made out of retained earnings to the level of these negative amounts.

Certain of Aegon’s subsidiaries, principally insurance companies, are subject to restrictions on the amounts of funds they may transfer in the form of cash dividends or otherwise to their parent companies. There can be no assurance that these restrictions will not limit or restrict Aegon in its ability to pay dividends in the future.

On the reporting date, Aegon N.V., and its subsidiaries held 66,583,671 of its own common shares (2018: 62,562,070) with a par value of EUR 0.12 each. Most of the shares have been purchased to neutralize the dilution effect of issued share dividend and to hedge share based payment plans for executives and employees. Aegon N.V. held 25,309,920 of its own common shares B (2018:13,856,480) with a par value of EUR 0.12 each.

Movements in the number of treasury common shares held by Aegon N.V. were as follows:


	2019						2018
	Number of shares						Number of shares
	(thousands)			Amount			(thousands)			Amount
At January 1		61,418			326			64,488			314

Transactions in 2019:
Sale: transactions, average price EUR 5.10		(3,657	)		(19	)
Sale: 1 transaction, average price EUR 5.25		(32,874	)		(173	)
Purchase: 1 transaction, average price EUR 4.52		32,874			149
Sale: 1 transaction, average price EUR 5.16		(35,370	)		(183	)
Purchase: 1 transaction, average price EUR 3.89		43,150			168

Transactions in 2018:
Sale: transactions, average price EUR 3,76								(3,070	)		(12	)
Sale: 1 transaction, average price EUR 4.62								(21,954	)		(101	)
Purchase: 1 transaction, average price EUR 5.34								21,954			117
Sale: 1 transaction, average price EUR 5.09								(24,134	)		(123	)
Purchase: 1 transaction, average price EUR 5.43								24,134			131
At December 31		65,540			269			61,418			326

Movements in the number of treasury common shares B held by Aegon N.V. were as follows:



	2019					2018
	Number of shares					Number of shares
	(thousands)			Amount		(thousands)			Amount
At January 1		13,856			2		15,346			2

Transactions in 2019:
Sale: 1 transaction, average price EUR 0.12		(1,774	)		-
Buy: 1 transaction, average price EUR 0.10		13,227			1

Transactions in 2018:
Sale: 1 transaction, average price EUR 0.11							(1,489	)		-
At December 31		25,310			3		13,856			2


	2019				2018
	Number of shares (thousands)		Total amount		Number of shares (thousands)		Total amount
Common shares
Held by Aegon N.V.		65,540		269		61,418		326
Held by subsidiaries		1,043		9		1,144		9
Common shares B
Held by Aegon N.V.		25,310		3		13,856		2
At December 31		91,893		281		76,419		337

The consideration for the related shares is deducted from or added to the retained earnings.