As an international company, our goal is to secure strong and stable sources of capital, allowing our businesses to grow and ensure that we continue to meet payment obligations to our customers and policyholders.
Key to this is making sure we can raise capital from international financial markets on the most competitive terms.
The amount of capital we hold is determined by regulatory requirements, as well as our own commitment to maintaining Aegon's strong financial strength ratings. This amount is directly linked to the types of products and services we provide, the markets in which we operate, and the financial risks we choose to accept.
Innovative Approach to Capital Management
Over the past several years, by reducing risk and using our capital more efficiently, we have been able to free up billions of euros from our businesses. We have also taken a more innovative approach to capital management, and invested more in products and services that are less capital intensive. At the same time, we have maintained a significant capital buffer against any worsening in world financial markets.
Aegon's priority is not only to maintain this buffer, but also to improve the quality of the capital we hold. That means making sure that higher-quality 'core capital' - essentially equity from our shareholders - accounts for at least three-quarters of the company's overall capital base. The higher our core capital, the less dependent Aegon is on debt. By the end of 2012, core capital accounted for nearly 77% of total capital, ahead of our target of 75%.
This cash is then available for a variety of purposes: to meet day-to-day operating expenses, service the company's debt, make new investments, pay dividends to shareholders, and claims and benefits to the company's customers and policyholders.
We regularly 'stress test' our liquidity position to make sure we can continue to meet these obligations, even under extreme conditions. In 2012, we maintained holdings of cash and other highly liquid assets as a safeguard against volatile financial markets. Our stress tests determined that available liquidity in our operating companies would more than match demand for at least two years, even if market conditions were to deteriorate significantly.
En om die reden dekt AEGON dus een koersdaling in(maar zoals bekend wel op een tijdstip waarop nog niemand er aan denkt(vooruitziende blik dus)
En nu maar hopen dat de strategie met betrekking tot de valutaschommelingen niet veranderd is want dan sporen er twee lijnen die de liquidity position´ niet met deze eigen gemaakte grondwet...