Analyst Note| Henry Heathfield, CFA |
On Dec. 15, 2021, Aegon announced it had entered into an agreement with Reinsurance Group of America to improve the longevity risk profile of its Netherlands Life business. The agreement provides protection against longevity risk for EUR 7 billion of Aegon's Dutch pension liabilities and will remain in place until the block reaches full run off. Together with the longevity transaction entered into in December 2019, the announcement takes Aegon's cover of longevity risk to about 40% of its Dutch pension liabilities. The transaction announced in December 2019 was placed with Canada Life Reinsurance and covered EUR 12 billion of Aegon's Dutch pension liabilities. We think these transactions largely relate to a combined EUR 52.6 billion in Dutch group and individual pension liabilities as at year-end 2020.