See accounting policy C.

Changes in the composition of the group relates to the intangible assets acquired through the acquisition of Aegon NL, see chapter 7.4.5. Intangible assets acquired relates mainly to customer relationships, trade names and software.

Goodwill

For the purpose of impairment testing, goodwill is allocated to the CGU's of the relevant operating segment.

Goodwill has an indefinite useful life and is not amortised. a.s.r. performs an impairment test annually, or more frequently if events or circumstances warrant so, to ascertain whether goodwill has been subject to impairment.

For the CGU's within the Non-life, Life and Asset Management segments, the results of these tests, using updated multiples and discount rates, show excess recoverable values over the book values and no goodwill impairment is recognised. A deterioration within reasonable limits on one of the assumptions in isolation would not lead to an impairment. The buffer is also capable of absorbing a combination of negative factors. However, should circumstances on multiple factors deteriorate significantly, it could lead to a negative outcome for the buffer (the difference between the recoverable value and the book value).

Segment Distribution and Services

The goodwill impairment test was conducted at the CGU’s within the Distribution and Services segment. The outcomes of the goodwill tests on step 1 showed that the differences between the recoverable amounts and the carrying values is sufficient to support the amounts of goodwill allocated to the CGU’s for nearly all CGU's. These CGU’s still have a sufficient positive headroom and management believes that any reasonable possible change in the key assumptions on which all CGU’s recoverable amounts are based would not cause the carrying amounts to exceed their recoverable amounts.

In light of last year's impairment, for one CGU an in depth analysis was performed in order to determine a recoverable amount in a manner that better addresses the specific characteristics of this CGU. The CGU’s operating activities concern those of a distribution partner and service provider. In step 2, future cash flows are based on expected market developments and past experience and on the long-term characteristics of the markets in which the CGU operates.

The resulting value in use is not sufficient to support the amount of goodwill allocated to that CGU. The increased competitiveness in the market and lower organic growth results in a lower recoverable value. The consequence for this CGU is an impairment loss on the goodwill charged to the income statement amounting to € 13 million.

Other intangible assets

The other intangible assets mainly relate to Aegon NL, Distribution and Services, a.s.r. IORP and Loyalis. The other intangible assets mainly relate to customer relationships, trade names and software. The other intangible assets are amortised straight-line over their useful life, which is determined individually (between 5 and 20 years). The amortisation charges on other intangible assets are recorded in the operating and other expenses (see chapter 7.6.11).