32 Shareholders’ equity
Issued share capital and reserves attributable to shareholders of Aegon N.V.
| Note | 2017 | 2016 | 2015 | |||||||||||||
|
Share capital – par value |
32.1 | 322 | 319 | 328 | ||||||||||||
|
Share premium |
32.2 | 7,731 | 7,873 | 8,059 | ||||||||||||
|
Total share capital |
8,053 | 8,193 | 8,387 | |||||||||||||
|
Retained earnings |
9,699 | 7,609 | 8,100 | |||||||||||||
|
Treasury shares |
32.3 | (325 | ) | (190 | ) | (269 | ) | |||||||||
|
Total retained earnings |
9,374 | 7,419 | 7,832 | |||||||||||||
|
Revaluation reserves |
32.4 | 4,920 | 5,381 | 6,471 | ||||||||||||
|
Remeasurement of defined benefit plans |
32.5 | (1,669 | ) | (1,820 | ) | (1,532 | ) | |||||||||
|
Other reserves |
32.6 | (390 | ) | 1,347 | 1,283 | |||||||||||
|
Total shareholders’ equity |
20,288 | 20,520 | 22,441 | |||||||||||||
In May 2017, Aegon issued a total of 1,979,260 common shares B with a par value of EUR 0.12 to compensate for the dilution of Vereniging Aegon’s shareholding caused by the allocation of shares with senior management on May 19, 2017, in connection with the Long Term Incentive Plans for senior management.
In June 2017, Aegon distributed to its shareholders who elected stock dividend a total number of 26,916,371 common shares in respect to the final dividend for 2016. This stock dividend distribution was paid from treasury shares (note 32.3 Treasury shares).
In June 2017, Aegon issued to Vereniging Aegon 13,042,612 common shares B with a par value of EUR 0.12 to compensate for the dilution of Vereniging Aegon’s shareholding caused by the distribution of the final dividend 2016 in shares.
In September 2017, Aegon distributed to its shareholders 24,948,255 common shares as interim dividend 2017 in the form of stock. This stock dividend distribution was paid from treasury shares (note 32.3 Treasury shares) and with the issuance of 21,099,402 common shares with a par value of EUR 0.12
In December 2017, Aegon completed a share buyback program to neutralize the dilutive effect of the 2016 final dividend and 2017 interim dividend paid in shares, and repurchased a total of 51,864,626 common shares.
Furthermore, in December 2017, Aegon repurchased 13,042,592 common shares B from Vereniging Aegon to keep the voting rights of Vereniging Aegon on the agreed level.
In June 2016, Aegon distributed to its shareholders who elected stock dividend a total number of 29,258,662 common shares in respect to the final dividend for 2015. This stock dividend distribution was paid from treasury shares (note 32.3 Treasury shares) and with the issuance of 9,121,989 common shares with a par value of EUR 0.12.
In September 2016, Aegon distributed to its shareholders 30,765,224 common shares as interim dividend 2016 in the form of stock. This stock dividend distribution was paid from treasury shares (note 32.3 Treasury shares) and with the issuance of 1,506,562 common shares with a par value of EUR 0.12.
In 2016, following each distribution of stock dividend, Aegon completed a share buyback program to neutralize the dilutive effect of the 2015 final dividend and 2016 interim dividend paid in shares, and repurchased a total of 60,023,886 common shares.
Aegon also executed a EUR 400 million share buyback program in which 83,116,535 common shares were repurchased. These common shares have been repurchased as part of a program to neutralize the dilutive effect of the cancellation of the preferred shares in 2013. All 83,116,535 common shares repurchased under this program were cancelled in September 2016.
Furthermore, in June 2016, Aegon repurchased 17,324,960 common shares B from Vereniging Aegon to keep the voting rights of Vereniging Aegon on the agreed level.
In June 2015, Aegon distributed to its shareholders who elected stock dividend a total number of 16,279,933 common shares in respect to the final dividend for 2014. This stock dividend distribution was fully paid from treasury shares (note 32.3 Treasury shares).
In September 2015, Aegon distributed to its shareholders 20,136,673 common shares as interim dividend 2015 in the form of stock. This stock dividend distribution was paid from 19,047,358 treasury shares (note 32.3 Treasury shares) and with the issuance of 1,089,315 common shares with a par value of EUR 0.12.
In 2015, following each distribution of stock dividend, Aegon completed a share buyback program to neutralize the dilutive effect of the 2014 final dividend and 2015 interim dividend paid in shares, and repurchased a total of 36,416,606 common shares.
Furthermore, in 2015, Aegon issued a total of 3,696,440 common shares B with a par value of EUR 0.12 to compensate for the dilution of Vereniging Aegon’s shareholding caused by the issuance of shares on January 1, 2015 and May 21, 2015, in connection with the Long Term Incentive Plans for senior management.
32.1 Share capital – par value
| 2017 | 2016 | 2015 | ||||||||||
|
Common shares |
251 | 249 | 258 | |||||||||
|
Common shares B |
70 | 70 | 70 | |||||||||
|
At December 31 |
322 | 319 | 328 | |||||||||
| Common shares | 2017 | 2016 | 2015 | |||||||||
|
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 | 2017 | 2016 | 2015 | |||||||||
|
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 | Number of shares | |||||||||||||||
| (thousands) | Total amount | (thousands) | Total amount | |||||||||||||
|
At January 1, 2015 |
2,145,948 | 258 | 581,326 | 70 | ||||||||||||
|
Shares issued |
- | - | 3,696 | - | ||||||||||||
|
Dividend |
1,089 | - | - | - | ||||||||||||
|
At December 31, 2015 |
2,147,037 | 258 | 585,022 | 70 | ||||||||||||
|
Dividend |
10,629 | 1 | - | - | ||||||||||||
|
Shares withdrawn |
(83,117 | ) | (10 | ) | - | - | ||||||||||
|
At December 31, 2016 |
2,074,549 | 249 | 585,022 | 70 | ||||||||||||
|
Dividend |
21,099 | 3 | - | - | ||||||||||||
|
At December 31, 2017 |
2,095,648 | 251 | 585,022 | 70 | ||||||||||||
|
Weighted average number of common shares (thousands) |
Weighted average number of common shares B (thou- sands) |
|||||||
|
2015 |
2,146,261 | 583,608 | ||||||
|
2016 |
2,129,074 | 585,022 | ||||||
|
2017 |
2,080,792 | 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 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%.
32.2 Share premium
| 2017 | 2016 | 2015 | ||||||||||
|
At January 1 |
7,873 | 8,059 | 8,270 | |||||||||
|
Share dividend |
(142 | ) | (186 | ) | (211 | ) | ||||||
|
At December 31 |
7,731 | 7,873 | 8,059 | |||||||||
|
Share premium relating to: |
||||||||||||
|
- Common shares |
6,078 | 6,220 | 6,406 | |||||||||
|
- Common shares B |
1,653 | 1,653 | 1,653 | |||||||||
|
Total share premium |
7,731 | 7,873 | 8,059 | |||||||||
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.
32.3 Treasury shares
On the reporting date, Aegon N.V. and its subsidiaries held 65,650,650 (2016: 48,780,045) of its own common shares and 15,345,680 (2016: 17,324,960) own common shares B with a par value of EUR 0.12 each.
Movements in the number of treasury common shares of Aegon N.V. were as follows:
| 2017 | 2016 | 2015 | ||||||||||||||||||||||
| Number of shares (thousands) |
Amount | Number of shares (thousands) |
Amount | Number of shares (thousands) |
Amount | |||||||||||||||||||
|
At January 1 |
47,473 | 178 | 42,998 | 257 | 49,537 | 306 | ||||||||||||||||||
|
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 | ||||||||||||||||||||||
|
Transactions in 2016: |
||||||||||||||||||||||||
|
Purchase: transactions, average price EUR 4.81 |
83,117 | 400 | ||||||||||||||||||||||
|
Sale: transactions, price average EUR 6.49 |
(6,153 | ) | (40 | ) | ||||||||||||||||||||
|
Sale: 1 transaction, price EUR 6.38 |
(20,137 | ) | (129 | ) | ||||||||||||||||||||
|
Purchase: transactions, average price EUR 3.51 |
29,259 | 103 | ||||||||||||||||||||||
|
Sale: 1 transaction, price EUR 5.11 |
(29,259 | ) | (150 | ) | ||||||||||||||||||||
|
Shares withdrawn: 1 transaction, price EUR 4.60 |
(83,117 | ) | (382 | ) | ||||||||||||||||||||
|
Purchase: transactions, average price EUR 3.84 |
30,765 | 118 | ||||||||||||||||||||||
|
Transactions in 2015: |
||||||||||||||||||||||||
|
Sale: 1 transaction, price EUR 7.24 |
(7,628 | ) | (47 | ) | ||||||||||||||||||||
|
Sale: 1 transaction, price EUR 6.62 |
(16,280 | ) | (93 | ) | ||||||||||||||||||||
|
Purchase: transactions, average price EUR 6.63 |
16,280 | 108 | ||||||||||||||||||||||
|
Sale: 1 transaction, price EUR 5.40 |
(19,047 | ) | (123 | ) | ||||||||||||||||||||
|
Purchase: transactions, average price EUR 5.28 |
20,137 | 106 | ||||||||||||||||||||||
|
At December 31 |
64,488 | 314 | 47,473 | 178 | 42,998 | 257 | ||||||||||||||||||
Movements in the number of treasury common shares B of Aegon N.V. were as follows:
| 2017 | 2016 | 2015 | ||||||||||||||||||||||
| Number of shares (thousands) |
Amount | Number of shares (thousands) |
Amount |
Number of shares (thousands) |
Amount | |||||||||||||||||||
|
At January 1 |
17,325 | 2 | - | - | - | - | ||||||||||||||||||
|
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 | ||||||||||||||||||||||
|
Transactions in 2016: |
||||||||||||||||||||||||
|
Purchase: transactions, average price EUR 0.11 |
17,325 | 2 | ||||||||||||||||||||||
|
Transactions in 2015: |
||||||||||||||||||||||||
|
- |
- | - | - | - | - | - | ||||||||||||||||||
|
At December 31 |
15,346 | 2 | 17,325 | 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.
| 2017 | 2016 | 2015 | ||||||||||||||||||||||
| 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. |
64,488 | 314 | 47,473 | 178 | 42,998 | 257 | ||||||||||||||||||
|
Held by subsidiaries |
1,162 | 9 | 1,307 | 10 | 1,534 | 12 | ||||||||||||||||||
|
Common shares B |
||||||||||||||||||||||||
|
Held by Aegon N.V. |
15,346 | 2 | 17,325 | 2 | - | - | ||||||||||||||||||
|
At December 31 |
80,996 | 325 | 66,105 | 190 | 44,532 | 269 | ||||||||||||||||||
|
Weighted average number of treasury shares, including treasury shares held by subsidiaries (thousands) |
Weighted average number of treasury shares B (thousands) |
|||||||
|
2015 |
45,097 | - | ||||||
|
2016 |
81,570 | 9,893 | ||||||
|
2017 |
38,490 | 9,841 | ||||||
32.4 Revaluation reserves
| Available-for-sale investments |
Real estate held for own use |
Cash flow hedging reserve |
Total | |||||||||||||
|
At January 1, 2017 |
3,418 | 59 | 1,904 | 5,381 | ||||||||||||
|
Gross revaluation |
1,310 | 8 | (115 | ) | 1,203 | |||||||||||
|
Net (gains) / losses transferred to income statement |
(1,330 | ) | - | (738 | ) | (2,069 | ) | |||||||||
|
Foreign currency translation differences |
(228 | ) | (8 | ) | (216 | ) | (452 | ) | ||||||||
|
Tax effect |
308 | 9 | 567 | 883 | ||||||||||||
|
Other |
(28 | ) | - | 1 | (27 | ) | ||||||||||
|
At December 31, 2017 |
3,450 | 68 | 1,402 | 4,920 | ||||||||||||
|
At January 1, 2016 |
4,546 | 52 | 1,873 | 6,471 | ||||||||||||
|
Gross revaluation |
857 | 8 | (131 | ) | 733 | |||||||||||
|
Net (gains) / losses transferred to income statement |
(2,122 | ) | - | 78 | (2,044 | ) | ||||||||||
|
Foreign currency translation differences |
(101 | ) | 2 | 61 | (38 | ) | ||||||||||
|
Tax effect |
240 | (3 | ) | 24 | 262 | |||||||||||
|
Other |
(2 | ) | - | - | (2 | ) | ||||||||||
|
At December 31, 2016 |
3,418 | 59 | 1,904 | 5,381 | ||||||||||||
|
At January 1, 2015 |
6,741 | 42 | 1,525 | 8,308 | ||||||||||||
|
Gross revaluation |
(2,479 | ) | 8 | 278 | (2,193 | ) | ||||||||||
|
Net (gains) / losses transferred to income statement |
(485 | ) | - | (13 | ) | (498 | ) | |||||||||
|
Disposal of a business |
(468 | ) | - | - | (468 | ) | ||||||||||
|
Foreign currency translation differences |
307 | 5 | 181 | 492 | ||||||||||||
|
Tax effect |
934 | (2 | ) | (98 | ) | 833 | ||||||||||
|
Other |
(3 | ) | - | - | (3 | ) | ||||||||||
|
At December 31, 2015 |
4,546 | 52 | 1,873 | 6,471 | ||||||||||||
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:
| 2017 | 2016 | 2015 | ||||||||||
|
Shares |
40 | 130 | 139 | |||||||||
|
Debt securities |
3,423 | 3,245 | 4,354 | |||||||||
|
Other |
(14 | ) | 43 | 53 | ||||||||
|
Revaluation reserve for available-for-sale investments |
3,450 | 3,418 | 4,546 | |||||||||
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.
32.5 Remeasurement of defined benefit plans
| 2017 | 2016 | 2015 | ||||||||||
|
At January 1 |
(1,820 | ) | (1,532 | ) | (1,611 | ) | ||||||
|
Remeasurements of defined benefit plans |
224 | (392 | ) | 234 | ||||||||
|
Tax effect |
(175 | ) | 89 | (75 | ) | |||||||
|
Net exchange differences |
102 | 16 | (86 | ) | ||||||||
|
Disposal of a business |
- | - | 6 | |||||||||
|
Total remeasurement of defined benefit plans |
(1,669 | ) | (1,820 | ) | (1,532 | ) | ||||||
32.6 Other reserves
| Foreign currency translation reserve |
Net foreign investment hedging reserve |
Equity movements of joint ventures and associates |
Total | |||||||||||||
|
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 | ) | |||||||||
|
At January 1, 2016 |
1,731 | (467 | ) | 19 | 1,283 | |||||||||||
|
Movement in foreign currency translation and net foreign investment hedging reserves |
25 | 65 | - | 91 | ||||||||||||
|
Tax effect |
(22 | ) | (17 | ) | - | (39 | ) | |||||||||
|
Equity movements of joint ventures |
- | - | 9 | 9 | ||||||||||||
|
Equity movements of associates |
- | - | 3 | 3 | ||||||||||||
|
At December 31, 2016 |
1,734 | (418 | ) | 31 | 1,347 | |||||||||||
|
At January 1, 2015 |
268 | (382 | ) | 27 | (86 | ) | ||||||||||
|
Movement in foreign currency translation and net foreign investment hedging reserves |
1,687 | (181 | ) | - | 1,505 | |||||||||||
|
Disposal of a business |
(127 | ) | 51 | - | (76 | ) | ||||||||||
|
Tax effect |
(98 | ) | 45 | - | (52 | ) | ||||||||||
|
Equity movements of joint ventures |
- | - | (8 | ) | (8 | ) | ||||||||||
|
Equity movements of associates |
- | - | (1 | ) | (1 | ) | ||||||||||
|
At December 31, 2015 |
1,731 | (467 | ) | 19 | 1,283 | |||||||||||
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.