AEGON N.V.

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AEGON N.V.
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Quick Facts
TypePublic
sectorFinancial Services
Headquarters (Benelux Organization)Den Haag, Netherlands
Year of Origin1983
Emissions (All Scopes)18,79 Megatons of CO2 (2020)[1]
Total RevenueXXX
Stock ExchangeBijv. Tokio, Amsterdam
Key People
  • Lard Friese (CEO and Chairman of the Executive and Management Board)
  • Matt Rider (CFO)
Number of Employees22.272
Subsidiaries
  • Aegon Asset Management
  • Knab
  • Aegon Cappital
  • TKP Pensioen
  • Nedasco Verzekeringen
  • Robidus

Aegon N.V., stylized as Aegon, is a Dutch company that offers insurance to over 30 million customers worldwide. Aegon is a constituent of the AEX index and is listed on the Euronext Amsterdam. The company was formed from the merger between AGO and Ennia in 1983. The company has 22.272 employees.[2] Aegon is active in several countries in Europe, Asia and America. In America, Aegon is known as Transamerica. [3] Aegon's main brands are Aegon and Transamerica, but besides these two the company also has several stand-alone brands including; Knab, TKP, Futureready, and MAG.[4] Furthermore, Aegon has one global asset manager Aegon Asset Management. Aegon Asset Management is active in the global investment business that manages and advises on assets of 410 billion euros. This money is from the global client base consisting of pension plans, public funds, insurance companies, banks, wealth managers, family offices, and foundations.[5] In 2021, Aegon had a revenue of 25,209 million euros.[6]


Company Structure

Board of Directors

Executive Board [7]
Name Function Remuneration x1000 EUR [8]
Lard Friese Chief Executive Officer 1,545 [9]
Matt Rider Chief Finanacial Officer 1,255 [10]

Management Board

Management Board [11]
Name Function
Lard Friese CEO and Chairman of the Executive and Management Board
Matt Rider CFO and member of the Executive and Management Board
Elisabetta Caldera Chief Human Resources Officer and member of the Management
Will Fuller CEO of Aegon Americas and member of the Management Board
Mike Holliday-Williams CEO of Aegon UK and member of the Management Board
Allegra van Hövel-Patrizi CEO of Aegon the Netherlands and member of the Management Board
Astrid Jäkel Chief Risk Officer and member of the Management Board
Marco Keim CEO Aegon International and member of the Management Board
Onno van Klinken General Counsel and member of the Management Board
Bas NieuweWeme Global CEO of Aegon Asset Management and member of the Management Board
Duncan Russel Chief Transformation Officer and member of the Management Board
Debbie Waters Chief Technology Officer (CTO) and member of the Management Board

Supervisory Board

Supervisory Board [12]
Name Function
William Connelly Chairman
Mark Ellman Member of the Risk Committee
Ben Noteboom Chairman of the Remuneration Committee
Caroline Ramsay Charimand of the Audit Committee
Thomas Wellauer Member of the Audit Committee
Corien Wortmann-Kool Vice Chairman of the Supervisory Board
Dona Young Chairman of the Risk Committee

Accountant

The external accountant of Aegon N.V. is PricewaterhouseCoopers Accountants N.V.[13]

Main Activities

In 1983 Aegon was conducted through a merger between AGO and Ennia. Aegon is active in over 20 countries in America, Europe and Asia. Worldwide they offer insurances to around 30 million customers. They also operate a direct bank under the name Knab. Knab has received some criticism due to having the highest cost for transaction compared to other Dutch banks.[14] Their headquarter is located in The Hague.

Government

Aegon is listed on the Euronext Amsterdam and is a constituent of the AEX-index. They have not received a royal status and did not receive NOW support during Corona times.[15]

Shareholdings

Aegons shareholdings are:

  • N.V. Levensverzekeringsmaatschappij "De Hoop" (33.3%) (Netherlands)
  • Tenet Group Limited (22%) (United Kingdom)
  • Seguros Argos (89%) (Mexico)
  • Aegon Life Insurance Company Ltd[7] (49%) (India)
  • Mongeral Aegon (50%) (Brazil)

Paris Agreement to Today

In 2015 Aegon signed the Paris Pledge for Action. They undertook an internal review of their alignment with a (less than) 2 degrees future to understand what actions were required. They also joined the Net-Zero Owner Alliance in November 2021, this is a UN-convened group of institutional investors committed to transitioning their portfolios to net-zero greenhouse gas emissions by 2050. This specifically for Aegon entails a commitment to transition their EUR 156 billion general account investment portfolio. [16]

Financial Results since 2015

The information that is collected here is focused on the Dutch data provided by Aegon.

Financial situation[17][18][19] [20]
Year Revenue Profit Dividend
2015 33,902 Million EUR 523 Million EUR 306 Million EUR
2016 33,655 Million EUR 586 Million EUR 294 Million EUR
2017 32,973 Million EUR 2,358 Million EUR 328 Million EUR
2018 28,941 Million EUR 741 Million EUR 309 Million EUR
2019 28,197 Million EUR 1,525 Million EUR 63 Million EUR
2020 25,657 Million EUR 55 Million EUR 118 Million EUR
2021 25,209 Million EUR 1,701 Million EUR 248 Million EUR

Scandals and controversies

Aegon has been criticised for investing around 600 Million EUR in polluting tar sands companies. The extraction of tar sands is disastrous and very destructive for local nature. Hot water has to be used for the extraction and also chemicals are used to make the oil suitable for transport.[21]

Current Emissions

GHG emissions (metric tons CO2e) [22]
2021 2020 2019 Change 2019 to 2021
Scope 1 5,557 NM 6,138 9.5%
Scope 2 (gross/location) 16,366 NM 35,659 54.1%
Scope 2 (net/market) 203 NM 516 60.7%
Scope 3 operational 2,101 NM 10,739 80.4%

Note: The supporting data and calculation methodology for measurement of GHG emissions has been re-evaluated for the 2019 baseline year, and applied to the 2021 reporting year. Operational GHG emissions for 2020 have not been recalculated, and to avoid inconsistency have been omitted from the Integrated Annual Report 2021.

Climate Policy and Plans

Aegons operations that are located in the Netherlands focus on achieving the target that is set on reducing the CO2 emissions per-employee by at least 50% by 2030 against 2018 levels. Measures include improving the energy efficiency of their buildings, making greater use of technology to reduce business travel, and providing employees with more sustainable commuting options. To achieve the four UN Principle for Sustainable Insurance (PSI)Aegon annually reports on actions they have taken to implements those princples. These principles are following:

  • We will embed in our decision-making environmental, social and governance (ESG) issues relevant to the insurance business
  • We will work together with our clients and business partners to raise awareness of ESG issues, manage risk and develop solutions
  • We will work together with governments, regulators and other key stakeholders to promote widespreas actions across society on ESG issues
  • We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles

Furthemore they seek to incorporate climate considerations into management actions across their businesses. Steps to mitigate the environmental impact of their direct operations include minimizing their energy consumption and using renewable energy. They also focus on sustainable investments through Aegon's responsible investment framework.[23]

Annually they report on their operational carbon footprint.

Due Diligence

Aegon has said that they are reducing their investments in companies generating revenue from coal-fired power plants, or coal mining, to support the transition toward a low-carbon economy. They already exclude companies that derive 30% or more of sales from the exploration, mining, and refining of thermal coal.[24]

Conclusion

Aegon is a Dutch insurance company with a net income of around EUR 55 million. They engaged with 237 companies, these engagements were centered around issues relating to Aegon's thee focus topics: climate change, good health & well-being and biodiversity. Aegon is focusing on sustainable investment and reducing the companies air travel. From their Integrated Annual Report it seems that their Scope 2 (gross/location) contibutes to most of their GHG emissions. Their main focus should therefore lie on reducing emissions associated with the electricity they use. The output of their Scope 1 emissions however appears to be reducing at a much slower decline, 3,8%. In regards to their absolute footprint concerning corporate fixed income and sovereign fixed income the change from 2019 to 2020 is not measured and therefore provide no further information as to how the company is or is not improving.

References

  1. https://www.aegon.com/contentassets/88a9aa9e0e484dec9791c3bb5945512b/aegon-integrated-annual-report-2020.pdf p. 421-422
  2. https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p24
  3. https://www.aegon.com/about/who-we-are/
  4. https://www.aegon.com/about/who-we-are/our-brand/
  5. https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf P3
  6. https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p94
  7. https://www.aegon.com/about/governance/executive-board/
  8. https://www.aegon.com/contentassets/27d304544de4425fad7e8b8bcfa680c1/aegon-remuneration-report-2020.pdf
  9. https://www.beursgenoten.nl/koersen/euronext-aandelen-amsterdam/aegon/profiel
  10. https://www.erieri.com/executive/salary/matthew-rider-axdz
  11. https://www.aegon.com/about/governance/management-board/
  12. https://www.aegon.com/about/governance/supervisory-board/
  13. https://www.aegon.com/contentassets/88a9aa9e0e484dec9791c3bb5945512b/aegon-integrated-annual-report-2020.pdf p. 121
  14. https://www.businessinsider.nl/klant-laat-zich-nog-niet-verleiden-door-nieuwe-bank-knab-408710/
  15. https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf
  16. https://www.aegon.com/responsible-business/external-commitments/our-commitments/
  17. https://www.aegon.com/contentassets/14bdec897d244680b202b22291c751ec/aegon-integrated-annual-report-2019.pdf
  18. https://www.aegon.nl/over-ons/beleid-cijfers/jaarcijfers
  19. https://www.aegon.com/contentassets/5a2428e87caf4185abb1ff55f476f147/aegon-integrated-annual-report-2020.pdf
  20. https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf
  21. https://www.nu.nl/duurzaam/5320943/pensioenbeleggers-investeren-ruim-1-miljard-in-vervuilende-oliewinning.html
  22. https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf
  23. https://www.aegon.com/contentassets/88a9aa9e0e484dec9791c3bb5945512b/aegon-integrated-annual-report-2020.pdf p. 29
  24. https://www.reuters.com/article/idUSKBN1ZC0MH