Key figures
The Solvency II ratio increased to 198% (31 December 2023: 176%) and includes a deduction for share buyback (€ 100 million), interim dividend 2024 (€ 244 million) and final dividend 2024 (€ 409 million) and positive impact from the Knab transaction.
The EOF increased to € 12,321 million (31 December 2023: € 11,578 million) mainly driven by positive expected excess returns on investments (€ +957 million), value of new business (€ +117 million) and market and operational developments (€ +698 million), partly offset by the decrease in eligible own funds due to the Knab transaction (€ -254 million) and capital management actions (dividend € -653 million and share buyback € -100 million).
The SCR decreased to € 6,209 million (31 December 2023: € 6,581 million), driven by the Knab transaction (€ -649 million) and capital release (€ -79 million), partly compensated by an increase following market and operational developments (€ +356 million), among which model changes for LAC DT and harmonisation of mortgage valuation of a.s.r. and Aegon.
Other Capital Required relate to other financial sectors such as de Hoop and TKP (2023 includes Knab).
| | 31 December 2024 | 31 December 2023 |
|---|---|---|
| IFRS equity | 9,833 | 9,377 |
| Adjustments | -898 | -997 |
| Elimination intangible assets | -633 | -715 |
| Gross revaluation insurance liabilities | 2,421 | 2,045 |
| Other revaluations | -801 | -615 |
| Excess of assets over liabilities | 9,922 | 9,096 |
| Subordinated liabilities in OF | 2,964 | 2,907 |
| Other EOF items | -566 | -425 |
| Eligible own funds to meet SCR | 12,321 | 11,578 |
The table above presents the reconciliation of IFRS equity to the solvency II. The main differences between the IFRS equity and EOF Solvency II are:
Adjustment of other equity instruments (the other equity instruments excludes any discretionary interest);
Elimination of intangible assets, such as goodwill, as this is not recognised under Solvency II;
Net revaluation of insurance liabilities due to differences between IFRS 17 and SII, such as the applied yield curve. This is after tax-impact of 25.8%;
Other revaluations for example the revaluation of Financial Institutions;
The addition of subordinated liabilities and other equity instruments (excluding any discretionary interest);
Other EOF items, for example foreseeable dividend and non-available minority interest.