Aegon N : Integrated Annual Report 2021

Aegon Integrated Annual Report 2021

Contents

2 About Aegon

1. Our business environment

1. Our purpose

1. Our strategy and value creation

1. Governance and risk management
2. Boards and Governance

1. Risk and capital management

1. Regulation and compliance

Welcome to Aegon's 2021

Integrated Annual Report

This is Aegon's Integrated Annual Report for the year ended December 31, 2021. The report outlines the challenges and opportunities facing our business today and how we address these through our purpose, vision, and strategy, to create long-term value for our stakeholders. The report also contains the 2021 consolidated financial statements and company financial statements of Aegon N.V. (from page 119).

We have prepared the consolidated financial statements in accordance with the International Financial Reporting Standards, as adopted by the European Union (EU-IFRS). This report also conforms to the relevant reporting requirements under the Dutch Corporate Governance Code and Dutch Civil Code.

91 Financial information

1. Results of operations

1. Financial statements

1. Business overviews

1. Non-financialinformation
2. Basis of preparation

1. Integration and monitoring

1. Regulation

1. Frameworks and initiatives

1. Value created

PDF/printed version

In compliance with the requirements resulting from our listing on the New York Stock Exchange, we also prepare an Annual Report on Form 20-F in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB).

Throughout this document, Aegon N.V. is referred to as either 'Aegon' or 'the Company'. For the purposes of this report, 'member companies' shall mean, with respect to Aegon N.V., those companies consolidated in accordance with Dutch legislation relating to consolidated accounts.

References to 'NYSE' and 'SEC' relate to the New York Stock Exchange and the US Securities and Exchange Commission respectively. Aegon uses 'EUR' and 'euro' when referring to the lawful currency of European Monetary Union member states; 'USD' and 'US dollar' when referring to the lawful currency of the United States, and 'GBP', 'UK pound', and 'pound sterling' when referring to the lawful currency of the United Kingdom.

If you have comments or suggestions about this report, please contact our offices in The Hague, the Netherlands. Contact details may be found on page 396.

This document is the PDF/printed version of the 2021 Integrated Annual Report of Aegon N.V. and has been prepared for ease of use and does not contain ESEF information as specified in the Regulatory Technical Standards on ESEF (Delegated Regulation (EU) 2019/815). The 2021 Integrated Annual Report was made publicly available pursuant to section 5:25c of the Dutch Financial Supervision Act (Wet op het financieel toezicht) and was filed with the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten) in European single electronic reporting format (the ESEF package). The ESEF package is available on the company's websiteand includes a human readable XHTML version of the 2021 Integrated Annual Report. The auditor's report of the independent auditor is issued with the ESEF reporting package. In any case of discrepancies between this PDF/printed version and the ESEF package, the latter prevails.

Aegon Integrated Annual Report 2021

Helping people live their best lives

Our purpose

People are living longer, and at Aegon we are excited by the opportunities this brings. We are here for everyone who wants to make the most of their time on our planet and leave it a little better than they found it. That is why our purpose is Helping people live their best lives.

Much has changed since Aegon's founding almost 180 years ago. But our principles of solidarity and being there for one another when it matters remain unchanged. Our commitment to Helping people live their best lives is firmly rooted in our DNA. Our role is to champion the possibilities offered by longer lifespans. We are here to support every stage of a long, healthy life with guidance, financial advice, and propositions. With our solutions for investment, protection, and retirement, we give people the confidence to make the right choices for their future.

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About Aegon

About Aegon

Aegon is an integrated, diversified, international financial services group. We offer investment, protection, and retirement solutions, always with a clear purpose: Helping people live their best lives.

This commitment requires a sustainable, future-oriented business that actively considers all stakeholders, including our customers, employees, investors, partners, and society at large. Our roots date back almost 180 years to the first half of the 19th century.

Our strategy is focused on three core markets (the United States, the United Kingdom, and the Netherlands), three growth markets (Spain & Portugal, Brazil, and China), and one global asset manager. Aegon is headquartered in The Hague, the Netherlands.

	Women in senior	Weighted average
Number of customers	management	carbon intensity1

31.7	34%	490
In millions		1 Metric tons CO e/EURm revenue of corporate fixed
		2
		income and listed equity general account assets
Employee engagement	Operating result
score
68		EUR
	1,906
	In millions

Aegon About

management risk and Governance

information Financial

Free cash flow

Group Solvency II ratio

EUR	211%
729

In millions

Revenue-generating investments

EUR 1,024

In billions

financial-Non

Business overview

Aegon allocates capital toward profitable opportunities in its core and growth markets, and through Aegon Asset Management. As an international financial services group, we share capital, talent, knowledge, processes, and technologies across our different businesses. We derive our revenues and earnings from insurance premiums, investment returns, fees, and commissions.

We offer both direct and intermediary-assisted access to our products and services. For more complex and advanced services and products requiring tailored advice, we rely on a broad network of business partners that includes brokers, agents, banks, employee benefits consultants, and independent financial advisors. For simpler types of solutions, we are growing our direct distribution capabilities to engage with customers directly.

information

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About Aegon

Aegon's core markets

In the United States, Aegon operates primarily under the Transamerica brand. Through employers, Transamerica's Workplace Solutions division offers retirement plans, individual retirement accounts, voluntary employee benefits, and stable value solutions. Its Individual Solutions division offers life insurance, annuities, and mutual funds through third-partybroker-dealers, banks, wire houses, independent financial planners, and agents. These products are also distributed through its affiliated retail distribution group.

In the Netherlands, Aegon mainly operates under the Aegon brand. Aegon the Netherlands focuses

on life insurance, long-term savings, and pension and annuity solutions. The Workplace Solutions business focuses on new-style defined contribution pension solutions, associated disability services, and pensions administration. The company also operates a large mortgage origination business. Under the Knab brand, Aegon provides digital banking solutions with a focus on retail and self-employed customers.

In the United Kingdom, Aegon provides solutions for retirement, workplace savings, investing, and protection, all under the Aegon brand. Aegon UK accesses customers through wealth advisors as well as the workplace, and holds leading positions in the retirement and savings markets in both the workplace and retail segments.

Aegon's growth markets

In China, Aegon participates in two different joint ventures, each with its own brand and market presence. Aegon owns a 49% stake in Aegon THTF Life Insurance Company, which offers life insurance solutions through a network of branches, primarily in eastern China, and develops multi-channel distribution capabilities. Aegon Asset Management owns 49% of Aegon-Industrial Fund Management Company,

a Shanghai-based asset manager that offers mutual funds, segregated accounts, and advisory services.

In Brazil, Aegon has a 55% interest in Mongeral Aegon Group (MAG Seguros), the country's third- largest independent life insurer. MAG Seguros offers individual protection solutions, ranging from life insurance and pension products to solutions in investments, pension funds, and pension management. 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 operated under the Aegon brand since 1980. In 2013, Aegon entered a strategic partnership with a 51% stake in a joint venture with Banco Santander to distribute

life, health, and non-life insurance products through the bank's network of branches. Distribution agreements are also in place with Liberbank. Aegon Spain's own distribution channel offers life insurance, health insurance, and pension products.

One global asset manager

Aegon Asset Management is an active global investment business that manages and advises on assets of EUR 410 billion 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 Asset Management is active in our core and growth markets, as well as in France, Germany, Hungary, and Japan.

Aegon's operations in small and niche markets

Aegon operates a small number of businesses that are sub-scale or active in small or niche markets, which are managed with tight capital and with a bias to exit. They include Transamerica Life Bermuda, providing life insurance to high-net-worth individuals globally, as well as our digitally focused joint venture Aegon Life Insurance Company in India. In November 2020, Aegon announced the sale of its businesses in Hungary, Poland, Romania, and Turkey to Vienna Insurance Group AG Wiener Versicherung Gruppe. The closing of the sale is subject to regulatory approval.

Further information on our businesses can be found in the business overview section on page 302 of this report.

Aegon About

management risk and Governance

information Financial

information financial-Non

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