40 Transfers of financial assets

Transfers of financial assets occur when Aegon transfers contractual rights to receive cash flows of financial assets or when Aegon retains the contractual right to receive the cash flows of the transferred financial asset but assumes a contractual obligation to pay those cash flows to one or more recipients under that arrangement.

In the normal course of business, Aegon is involved in the following transactions:

 

 

 

 

 

The following disclosures provide details for transferred financial assets that are not derecognized in their entirety, transferred financial assets that are derecognized in their entirety, but where Aegon has continuing involvement, and assets have been accepted and pledged as collateral.

40.1 Transferred financial assets that have not been derecognized in their entirety

The following table presents the carrying amount of financial assets that have been transferred to another party in such a way that part or all the transferred financial assets do not qualify for derecognition. It also presents the carrying amounts of the associated liabilities.

 

In transactions in which the Group neither retains nor transfers substantially all the risks and rewards of ownership of a financial asset and it retains control over the asset, the Group continues to recognize the asset to the extent of its continuing involvement, determined by the extent to which it is exposed to changes in the value of the transferred asset.

Securities lending and repurchase activities

The table above includes financial assets that have been transferred to another party under securities lending and repurchase activities.

Aegon retains substantially all of the risks and rewards associated with the transferred assets, including credit risk, settlement risk, country risk, and market risk. The assets are transferred in return for cash collateral or other financial assets. collateral is not recognized in the statement of financial position. Cash collateral is recorded on the statement of financial position as an asset, and an offsetting liability is recognized for the same amount, as Aegon is obligated to return it upon termination of the lending arrangement. Cash collateral is usually invested in high-quality investments. The sum of cash and collateral is typically greater than the market value of the related securities loaned. See note

40.2 Transferred financial assets that are derecognized in their entirety, but where Aegon has continuing involvement

Aegon has no transferred financial assets with continuing involvement that are derecognized in their entirety as per 2025 and 2024.

40.3 Assets accepted

Aegon receives collateral for securities lending, reverse repurchase activities, and derivative transactions. collateral is not recognized in the statement of financial position. To the extent that cash is paid for reverse repurchase agreements, a receivable is recognized for the corresponding amount.

The following tables present the fair value of the assets received in relation to securities lending and reverse repurchase activities:

 

 

 

 

 

 

 

The above items are conducted under terms that are usual and customary for standard securities lending activities, as well as requirements set by exchanges where the bank acts as an intermediary.

For 2024 and 2025, there is no collateral that can be sold or repledged in the absence of default, and no collateral has been sold or transferred.

In addition, Aegon can receive collateral on derivative transactions. The credit support agreement will typically specify the threshold at which collateral must be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty to post collateral are typically the result of derivative trades, comprised mostly of interest rate swaps, currency swaps, and credit swaps. See the credit risk section in note

40.4 Assets pledged

Aegon pledges assets that are on its statement of financial position in securities borrowing transactions, in repurchase transactions, in derivative transactions, and against long-term borrowings. In addition, to trade derivatives across various exchanges, Aegon posts margin as collateral.

These transactions are conducted under terms that are usual and customary for standard long-term borrowing, derivative, and securities borrowing activities, as well as requirements set by exchanges where the bank acts as intermediary.

financial assets that are borrowed or purchased under agreement to resell are not recognized in the statement of financial position.

To the extent that cash collateral is paid, a receivable is recognized for the corresponding amount. If other financial assets are given as collateral, these are not derecognized.

The following tables present the carrying amounts of collateral pledged and the corresponding contingent liabilities.

 

For 2025 and 2024, there is no collateral that can be sold or repledged by the counterparty; no Assets pledged for repurchase agreements; no Cash collateral that can be sold or repledged by the counterparty.

To trade derivatives on the various exchanges, Aegon posts margin as collateral. The amount of collateral pledged for derivative transactions was EUR 2.0 billion (2024: EUR 2.8 billion).