Annual Report 2022
6.5.13
Equity

See accounting policy Z.

6.5.13.1 Share capital

Share capital
31 December 202231 December 2021

Number of Shares
(in millions)
Amounts
(in millions)

Number of Shares
(in millions)
Amounts
(in millions)
Ordinary shares
- Authorised capital; par value of 0.163255232552
- Of which unsubscribed1752818730
Subscribed and paid-up capital1502413822
Preference shares
- Authorised capital; par value of 0.163255232552
- Of which unsubscribed3255232552
Subscribed and paid-up capital----

The share capital increased as a result of issued share capital to finance the intended business combination of a.s.r. and Aegon Nederland N.V.

6.5.13.2 Share premium reserve

The share premium reserve increased by 577 million due to issued share capital to finance the intended business combination of a.s.r. and Aegon Nederland N.V. (591 million) and the cancellation of 2,036 thousand treasury shares (-14 million), as approved at the AGM in May 2022, see chapter 6.5.13.5.

6.5.13.3 Unrealised gains and losses recorded in equity

Unrealised gains and losses recorded in equity
31 December 202231 December 2021
Investments available for saleRevaluation of property in own useTotalInvestments available for saleRevaluation of property in own useTotal
Gross unrealised gains and losses-1,84450-1,7943,074383,112
Related tax526-13513-679-10-688
Shadow accounting503-503-1,257--1,257
Tax related to shadow accounting-130--130324-324
Unrealised gains and losses related to segregated investment pools-19--19-40--40
Tax related to segregated investment pool5-510-10
Total unrealised gains and losses recorded in equity-95937-9221,433281,461

6.5.13.4 Actuarial gains and losses

The balance of actuarial gains and losses related to the pension obligation increased by 887 million after tax and 1195 million before tax (2021: increased by 198 million after tax and 249 million before tax). The increase is mainly due to an increase in the discount rate (see chapter 6.5.17).

6.5.13.5 Treasury shares

As part of the employee share purchase plan a.s.r. sold 124 thousand shares for an amount of 4,06 million. The employee share purchase plan led to a decrease of 0.2 million in retained earnings. For more information on the employee share purchase plan, see chapter 6.7.6.

In February 2022, a.s.r. announced the repurchase of ordinary shares as an additional capital distribution. a.s.r. repurchased 1,798 thousand shares under an open market share buyback (SBB) programme for an amount of 75 million (average share price 41.70).

In the AGM in May 2022 the resolution was adopted to cancel the 2,036 thousand shares which were acquired in 2021. The cancellation was effected in August 2022.

The amount of treasury shares held at year-end of 79 million (2021: 83 million) represents 1,903 thousand (2021: 2,264 thousand) treasury shares.

6.5.13.6 Other equity instruments

Other equity instruments
20222021Coupon 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 shareholders' 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
20222021
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.

6.5.13.7 Earnings per share

Basic earnings per share at year end
20222021
Net result attributable to holders of ordinary shares for calculating the earnings per ordinary share685894
Weighted average number of ordinary shares in issue137,004,580136,260,472
Basic earnings per ordinary share (in euros)5.006.56
Diluted earnings per share at year end
20222021
Net result685894
- effect of Restricted Tier 1 capital instrument1717
Adjusted net result attributable to holders of ordinary shares for calculating the diluted earnings per ordinary share702911
Weighted average number of ordinary shares in issue137,004,580136,260,472
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 share158,649,601157,905,493
Diluted earnings per ordinary share (in euros)4.425.77

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

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