Annual Report 2021
Financial statements
6.5.13
Equity

See accounting policy Z.

6.5.13.1 Share capital

Share capital
31 December 202131 December 2020
Number of Shares
(in millions)
Amounts
(in millions)
Number of Shares
(in millions)
Amounts
(in millions)
Ordinary shares
- Authorised capital; par value of 0.163255235056
- Of which unsubscribed1873020933
Subscribed and paid-up capital1382214123
Preference shares
- Authorised capital; par value of 0.163255235056
- Of which unsubscribed3255235056
Subscribed and paid-up capital----

At the AGM in May 2021 shareholders of a.s.r. approved the proposal to amend the articles of association of a.s.r. and thus reduce the share capital. Under Dutch law (Article 2:67 paragraph 4 of the Dutch Civil Code) the authorised capital of a.s.r. may not exceed five times its issued capital. The authorised capital was reduced to a total amount of 104 million.

6.5.13.2 Unrealised gains and losses recorded in equity

Unrealised gains and losses recorded in equity
31 December 202131 December 2020
Investments available for saleRevaluation of property in own useTotalInvestments available for saleRevaluation of property in own useTotal
Gross unrealised gains and losses3,074383,1123,919453,964
Related tax-679-10-688-903-11-914
Shadow accounting-1,257--1,257-2,517--2,517
Tax related to shadow accounting324-324629-629
Unrealised gains and losses related to segregated investment pools-40--40-34--34
Tax related to segregated investment pool10-108-8
Total unrealised gains and losses recorded in equity1,433281,4611,103341,137

6.5.13.3 Actuarial gains and losses

The balance of actuarial gains and losses related to the pension obligation increased in 2021 by 198 million after tax and 249 million before tax (2020: decreased by 340 million after tax and 453 million before tax). The increase is mainly due to an increase in the discount rate (see chapter 6.5.17).

6.5.13.4 Treasury shares

In January 2021, a.s.r. announced a repurchasing programme for the employee share purchase plan for employees of a.s.r. and its wholly-owned subsidiaries. For this programme, a.s.r. repurchased 225 thousand shares under an open market SBB programme for an amount of 7.5 million (average share price 33.27). As part of the employee share purchase plan a.s.r. sold 126 thousand shares for an amount of 4 million. The employee share purchase plan led to a decrease of 0.5 million in retained earnings. For more information on the employee share purchase plan, see chapter 6.7.6.

In February 2021, a.s.r. announced the repurchase of ordinary shares as an additional capital distribution. a.s.r. repurchased 2,036 thousand shares under an open market SBB programme for an amount of 75 million (average share price 36.84).

In the AGM in May 2021 the resolution was adopted to cancel the 2,943 thousand shares which were acquired in 2020. The cancellation was effected in August 2021.

The amount of treasury shares held as at year-end 2021 of 83 million (2020: 82 million) represents 2,264 thousand (2020: 3,072 thousand) treasury shares.

6.5.13.5 Other equity instruments

In 2020 and 2021, a.s.r. neither issued nor redeemed any other equity instruments.

Other equity instruments
20212020Coupon dateFirst possible redemption date
Hybrid Tier 2 instrument 5% fixed interest497497Annually with effect from 30 September 201530 September 2024
Restricted Tier 1 instrument 4.625% fixed interest507507Semi-annually with effect from 19 April 201819 October 2027
Total other equity instruments1,0041,004

The Tier 1 and Tier 2 instruments bear discretionary interest and have no maturity date, but can be redeemed at the option of a.s.r. on any coupon due date from the above mentioned possible redemption date.

The Tier 1 and Tier 2 instruments have subordination provisions, rank junior to all other liabilities and senior to only shareholder’s equity. The conditions of the securities contain certain provisions for optional and required coupon payment deferral and mandatory coupon payment events.

The coupon payments in respect of the Tier 1 and Tier 2 instruments are deductible for tax purposes.

Distributed amounts to holders of equity instruments as discretionary interest
20212020
Hybrid Tier 2 instrument 5% fixed interest2525
Restricted Tier 1 instrument 4.625% fixed interest2323
Total distributed amounts4848

The Tier 1 and Tier 2 instruments are classified as equity as there is no requirement to settle the obligation in cash or another financial asset or to exchange financial assets or financial liabilities under conditions that are potentially unfavourable for a.s.r.

6.5.13.6 Earnings per share

Basic earnings per share at year end
20212020
Net result from continuing operations894611
Net result from discontinued operations--2
Net result attributable to holders of ordinary shares for calculating the earnings per ordinary share894609
Weighted average number of ordinary shares in issue136,260,472138,918,141
Basic earnings per ordinary share from continuing operations (in euros)6.564.40
Basic earnings per ordinary share from discontinued operations (in euros)--0.01
Basic earnings per ordinary share (in euros)6.564.38
Diluted earnings per share at year end
20212020
Net result from continuing operations894611
- effect of Restricted Tier 1 capital instrument1717
Adjusted net result from continuing operations911628
Net result from discontinued operations--2
Adjusted net result attributable to holders of ordinary shares for calculating the diluted earnings per ordinary share911626
Weighted average number of ordinary shares in issue136,260,472138,918,141
Weighted average number of ordinary shares resulting from conversion of bonds Restricted Tier 121,645,02221,645,022
Weighted average number of shares used to calculate the diluted earnings per ordinary share157,905,493160,563,162
Diluted earnings per ordinary share from continuing operations (in euros)5.773.91
Diluted earnings per ordinary share from discontinued operations (in euros)--0.01
Diluted earnings per ordinary share (in euros)5.773.90

Net result in the table is after tax and non-controlling interests.

For additional information related to net result, see chapter 6.2.2.