Why do you need to strengthen your capital?

AEGON’s capital reserves already exceed the targets set by ratings agencies, which tend to be higher than those set by the regulators. However, following recent market falls governments have been injecting capital into financial institutions to allow them to maintain a capital buffer.
The uncertain economic outlook coupled with demanding investment markets make it prudent to have a large financial buffer in place to support our AA rating. As well as strongly positioning us to withstand any future volatility, this buffer allows us flexibility to continue executing our growth strategy while giving our customers the security of a financially strong business.   

Why is this different to what happened to the banks?

While some banks have recently taken similar actions to address problems with liquidity, which affects cash flow, we are taking this opportunity to strengthen our capital resources.

This capital will be structured as non-voting securities. However, the Dutch government is not taking an equity stake in AEGON.

The move is not a nationalisation.

Is AEGON secure?

The facility from the Dutch Government is only open to well managed and financially strong financial institutions. We’ve taken this opportunity to strengthen our capital position to position AEGON well for future market volatility. The additional capital will create a buffer to help AEGON weather volatility in the future.

What is the Association?

AEGON’s largest shareholder, Vereniging AEGON, is known as “The Association”. Its purpose is to represent the interests of policyholders, employees, shareholders and other stakeholders. It holds an 11% equity stake on AEGON N.V. and already owns preference shares in AEGON N.V.

How does this affect customers?

This action will have no direct impact on AEGON’s UK operation or on our customers, advisers or employees. We believe that strengthening AEGON’s capital position will benefit all of AEGON’s stakeholders, including those in the UK.

As AEGON has raised additional capital, we are keen to reassure customers of our financial strength. As a UK regulated company, all AEGON Scottish Equitable and AEGON UK customers are protected by UK policyholder protection regulations.