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Other equity instruments

12 Months Ended

Dec. 31, 2019

31 Other equity instruments


	Perpetual contingent convertible securities		Junior perpetual capital securities			Perpetual cumulative subordinated bonds		Non-cumulative subordinated notes			Long Term Incentive Plans 1)			Total
At January 1, 2019		-		2,808			454		-			58			3,320
Shares granted		-		-			-		-			21			21
Shares vested		-		-			-		-			(26	)		(26	)
Securities issued		500		-			-		-			-			500
Securities redeemed		-		(1,244	)		-		-			-			(1,244	)
At December 31, 2019		500		1,564			454		-			53			2,571

At January 1, 2018		-		3,008			454		271			61			3,794
Shares granted		-		-			-		-			16			16
Shares vested		-		-			-		-			(19	)		(19	)
Securities redeemed		-		(200	)		-		(271	)		-			(471	)
At December 31, 2018		-		2,808			454		-			58			3,320

At January 1, 2017		-		3,008			454		271			65			3,797
Shares granted		-		-			-		-			26			26
Shares vested		-		-			-		-			(30	)		(30	)
Securities redeemed		-		-			-		-			-			-
At December 31, 2017		-		3,008			454		271			61			3,794

1	Long Term Incentive Plans include the shares granted to personnel which are not yet vested.


Perpetual contingent convertible securities	Coupon rate			Coupon date		Year of next call		2019		2018		2017
EUR 500 million		5.625	%		Semi-annually, April 15		2029		500		-		-
At December 31									500		-		-

The perpetual contingent convertible securities of EUR 500 million issued on April 4, 2019 have a fixed coupon of 5.625% until the first call date and reset thereafter to 5 year mid swap plus a margin of 5.207%.

The securities have been issued at par and have subordination provisions, rank junior to all other liabilities and senior to shareholders’ equity only. The conditions of the securities contain certain provisions for optional and required coupon payment cancelation. Although the securities have no stated maturity, Aegon has the right to call the securities for redemption at par for the first time between April 15, 2029 and October 15, 2029 and every reset date (October 15, with five year intervals) thereafter. Upon breach of certain regulatory capital requirement levels, the securities convert into common shares.


Junior perpetual capital securities	Coupon rate			Coupon date, as of		Year of next call		2019		2018		2017
USD 500 million		6.50	%		Quarterly, December 15		Called in 2019		-		424		424
USD 250 million		floating LIBOR rate	1)		Quarterly, December 15		2020		212		212		212
USD 500 million		floating CMS rate	2)		Quarterly, July 15		2020		402		402		402
USD 1 billion		6.375	%		Quarterly, June 15		Called in 2019		-		821		821
EUR 950 million		floating DSL rate	3)		Quarterly, July 15		2020		950		950		950
EUR 200 million		6.0	%		Annually, July 21		Called in 2018		-		-		200
At December 31									1,564		2,808		3,008

1	The coupon of the USD 250 million junior perpetual capital securities is reset each quarter based on the then prevailing three-month LIBOR yield plus a spread of 87.5 basis points, with a minimum of 4%.

2	The coupon of the USD 500 million junior perpetual capital securities is reset each quarter based on the then prevailing ten-year US dollar interest rate swap yield plus a spread of ten basis points, with a maximum of 8.5%.

3	The coupon of the EUR 950 million junior perpetual capital securities is reset each quarter based on the then prevailing ten-year Dutch government bond yield plus a spread of ten basis points, with a maximum of 8%.

The interest rate exposure on some of these securities has been swapped to a three-month LIBOR and/or EURIBOR based yield.

With effect on June 15, 2019, Aegon has exercised its right to redeem USD 500 million 6.5% perpetual capital securities issued in 2005. The securities had no stated maturity, however Aegon had the right to call the securities for redemption and exercised this right with effect on June 15, 2019.

With effect on December 15, 2019, Aegon has exercised its right to redeem USD 1 billion 6.375% perpetual capital securities issued in 2005. The securities had no stated maturity, however Aegon had the right to call the securities for redemption and exercised this right with effect on December 15, 2019.

The securities have been issued at par. The securities have subordination provisions, rank junior to all other liabilities and senior to shareholders’ equity only. The conditions of the securities contain certain provisions for optional and required coupon payment deferral and, in situations under Aegon’s control, mandatory coupon payment events. Although the securities have no stated maturity, Aegon has the right to call the securities for redemption at par for the first time on the coupon date in the years as specified, or on any coupon payment date thereafter.


Perpetual cumulative subordinated bonds	Coupon rate		Coupon date		Year of next call		2019		2018		2017
EUR 203 million		4.260% 1), 4)		Annually, March 4		2021		203		203		203
EUR 114 million		1.506% 2), 4)		Annually, June 8		2025		114		114		114
EUR 136 million		1.425% 3), 4)		Annually, October 14		2028		136		136		136
At December 31								454		454		454

1	The coupon of the EUR 203 million bonds was originally set at 7.125% until March 4, 2011. Subsequently, the coupon has been reset at 4.26% until March 4, 2021.

2	The coupon of the EUR 114 million bonds was originally set at 8% until June 8, 2005. Subsequently, the coupon has been reset at 4.156% until June 8, 2015 and 1.506% until June 8, 2025.

3	The coupon of the EUR 136 million bonds was originally set at 7.25% until October 14, 2008. Subsequently, the coupon has been reset at 5.185% until October 14, 2018 and 1.425% until October 14, 2028.

4	If the bonds are not called on the respective call dates and after consecutive period of ten years, the coupons will be reset at the then prevailing effective yield of ten-year Dutch government securities plus a spread of 85 basis points.

The bonds have the same subordination provisions as dated subordinated debt. In addition, the conditions of the bonds contain provisions for interest deferral.

Although the bonds have no stated maturity, Aegon has the right to call the bonds for redemption at par for the first time on the coupon date in the year of next call.


Non-cumulative subordinated notes	Coupon rate		Coupon date		Year of next call		2019		2018		2017
USD 525 million		8%		Quarterly, February 15		Called in 2018		-		-		271
At December 31								-		-		271

With effect on May 15, 2018, Aegon has exercised its right to redeem USD 525 million

non-cumulative

subordinated notes, subsequently leading to their redemption. The securities had a stated maturity of 30 years, however, Aegon had the right to call the securities for redemption at par on any coupon payment date.

The

non-cumulative

subordinated notes were initially issued on February 7, 2012, in aggregate principal amount of 8.00%, due 2042, in an underwritten public offering in the United States registered with the US Securities and Exchange Commission.

Aegon N.V [member]

Statement [LineItems]

Other equity instruments

14 Other equity instruments


	Perpetual contingent convertible securities		Junior perpetual capital securities			Perpetual cumulative subordinated bonds		Non-cumulative subordinated notes			Long Term Incentive Plans 1)			Total
At January 1, 2019		-		2,808			454		-			58			3,320
Shares granted		-		-			-		-			21			21
Shares vested		-		-			-		-			(26	)		(26	)
Securities issued		500		-			-		-			-			500
Securities redeemed		-		(1,244	)		-		-			-			(1,244	)
At December 31, 2019		500		1,564			454		-			53			2,571

At January 1, 2018		-		3,008			454		271			61			3,794
Shares granted		-		-			-		-			16			16
Shares vested		-		-			-		-			(19	)		(19	)
Securities redeemed		-		(200	)		-		(271	)		-			(471	)
At December 31, 2018		-		2,808			454		-			58			3,320

1	Long Term Incentive Plans include the shares granted to personnel which are not yet vested.


Perpetual contingent convertible securities	Coupon rate		Coupon date		Year of next call		2019		2018
EUR 500 million		5.625%		Semi-annually, April 15		2029		500		-
At December 31								500		-


Junior perpetual capital securities	Coupon rate	Coupon date, as of	Year of next call		2019		2018
USD 500 million	6.50%	Quarterly, December 15		Called in 2019		-		424
USD 250 million	floating LIBOR rate 1)	Quarterly, December 15		2020		212		212
USD 500 million	floating CMS rate 2)	Quarterly, July 15		2020		402		402
USD 1 billion	6.375%	Quarterly, June 15		Called in 2019		-		821
EUR 950 million	floating DSL rate 3)	Quarterly, July 15		2020		950		950
At December 31						1,564		2,808

1	The coupon of the USD 250 million junior perpetual capital securities is reset each quarter based on the then prevailing three-month LIBOR yield plus a spread of 87.5 basis points, with a minimum of 4%.

2	The coupon of the USD 500 million junior perpetual capital securities is reset each quarter based on the then prevailing ten-year US dollar interest rate swap yield plus a spread of ten basis points, with a maximum of 8.5%.

3	The coupon of the EUR 950 million junior perpetual capital securities is reset each quarter based on the then prevailing ten-year Dutch government bond yield plus a spread of ten basis points, with a maximum of 8%.

The interest rate exposure on some of these securities has been swapped to a three-month LIBOR and/or EURIBOR based yield.


Perpetual cumulative subordinated bonds	Coupon rate	Coupon date	Year of next call		2019		2018
EUR 203 million	4.260% 1), 4)	Annually, March 4		2021		203		203
EUR 114 million	1.506% 2), 4)	Annually, June 8		2025		114		114
EUR 136 million	1.425% 3), 4)	Annually, October 14		2028		136		136
At December 31						454		454

1	The coupon of the EUR 203 million bonds was originally set at 7.125% until March 4, 2011. Subsequently, the coupon has been reset at 4.26% until March 4, 2021.

2	The coupon of the EUR 114 million bonds was originally set at 8% until June 8, 2005. Subsequently, the coupon has been reset at 4.156% until June 8, 2015 and 1.506% until June 8, 2025.

3	The coupon of the EUR 136 million bonds was originally set at 7.25% until October 14, 2008. Subsequently, the coupon has been reset at 5.185% until October 14, 2018 and 1.425% until October 14, 2028.

4	If the bonds are not called on the respective call dates and after consecutive period of ten years, the coupons will be reset at the then prevailing effective yield of ten-year Dutch government securities plus a spread of 85 basis points.

The bonds have the same subordination provisions as dated subordinated debt. In addition, the conditions of the bonds contain provisions for interest deferral.

Although the bonds have no stated maturity, Aegon has the right to call the bonds for redemption at par for the first time on the coupon date in the year of next call.