26 Investments in joint ventures
| 2017 | 2016 | |||||||
|
At January 1 |
1,614 | 1,561 | ||||||
|
Additions |
81 | 92 | ||||||
|
Share in net income |
161 | 137 | ||||||
|
Share in changes in joint ventures equity (note 32.6) |
(15 | ) | 9 | |||||
|
Dividend |
(118 | ) | (196 | ) | ||||
|
Net exchange difference |
(17 | ) | (4 | ) | ||||
|
Other |
7 | 15 | ||||||
|
At December 31 |
1,712 | 1,614 | ||||||
All joint ventures are unlisted and are accounted for using the equity method and are considered to be non-current. The investments in joint ventures include interest in insurance companies that are required to maintain a minimum solvency margin based on local directives. Such restrictions can affect the ability of these joint ventures to transfer funds in the form of cash dividends, or repayment of loans or advances, and therefore, there can be no assurance that these restrictions will not become a limitation in the future. Refer to note 48 Commitments and contingencies for any commitments and contingencies related to investments in joint ventures. There are no unrecognized shares of losses in joint ventures. The financial statements of the principal joint ventures have the same reporting date as the Group. Refer to note 52 Group companies for a listing of the investments in joint ventures and the Group’s percentage holding.
Summarized financial information of joint ventures
The summarized financial information presented in the following table presents the joint ventures on a 100% basis. Aegon considers its investment in AMVEST Vastgoed B.V. (AMVEST) a material joint venture and is therefore presented separately.
|
AMVEST |
Other Joint ventures | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
|
Summarized statement of financial position |
||||||||||||||||
|
Cash and cash equivalents |
109 | 135 | 342 | 373 | ||||||||||||
|
Other current assets |
166 | 237 | 721 | 737 | ||||||||||||
|
Total current assets |
276 | 372 | 1,063 | 1,110 | ||||||||||||
|
Non-current assets
|
|
3,173
|
|
|
2,519
|
|
|
6,521
|
|
|
6,375
|
|
||||
|
Total assets |
3,449 | 2,891 | 7,584 | 7,485 | ||||||||||||
|
Current financial liabilities excluding trade payables and other provisions |
- | - | 30 | 60 | ||||||||||||
|
Other current liabilities |
133 | 149 | 503 | 403 | ||||||||||||
|
Total current liabilities |
133 | 149 | 533 | 464 | ||||||||||||
|
Non-current financial liabilities excluding trade payables and other provisions |
643 | 476 | 220 | 292 | ||||||||||||
|
Other non-current liabilities |
- | - | 5,871 | 5,721 | ||||||||||||
|
Total non-current financial liabilities |
643 | 476 | 6,091 | 6,013 | ||||||||||||
|
Total liabilities |
776 | 625 | 6,624 | 6,477 | ||||||||||||
|
Net assets |
2,673 | 2,266 | 960 | 1,009 | ||||||||||||
|
Summarized statement of comprehensive income |
||||||||||||||||
|
Revenue |
91 | 86 | 1,420 | 1,248 | ||||||||||||
|
Results from financial transactions |
275 | 205 | (1 | ) | 1 | |||||||||||
|
Depreciation and amortization |
- | - | (20 | ) | (12 | ) | ||||||||||
|
Interest income |
- | - | 186 | 48 | ||||||||||||
|
Interest expense |
(5 | ) | (7 | ) | (3 | ) | (3 | ) | ||||||||
|
Profit or loss |
357 | 275 | 160 | 122 | ||||||||||||
|
Income tax (expense) or income |
(1 | ) | (10 | ) | (74 | ) | (47 | ) | ||||||||
|
Post-tax profit or (loss) |
357 | 266 | 86 | 75 | ||||||||||||
|
Other comprehensive income |
- | 7 | (32 | ) | 13 | |||||||||||
|
Total comprehensive income |
357 | 273 | 54 | 89 | ||||||||||||
|
Dividends received |
49 | 95 | 69 | 101 | ||||||||||||
An overview of the summarized financial information of the carrying amount of the joint ventures is as follows:
|
AMVEST |
Other Joint ventures | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
|
Net assets of joint venture as presented above |
2,673 | 2,266 | 960 | 1,009 | ||||||||||||
|
Net assets of joint venture excluding goodwill |
2,673 | 2,266 | 587 | 626 | ||||||||||||
|
Group share of net assets of joint venture, excluding goodwill |
1,008 | 877 | 312 | 338 | ||||||||||||
|
Goodwill on acquisition |
- | - | 373 | 383 | ||||||||||||
|
Carrying amount |
1,008 | 877 | 685 | 721 | ||||||||||||
The difference in the carrying value of investments in joint ventures of EUR 1,712 million (2016: EUR 1,614 million) and the total of the carrying value of joint ventures presented above of EUR 1,693 million (2016: EUR 1,598 million) relates to joint ventures with a negative carrying value of EUR 18 million (2016: EUR 16 million) which have been reclassified to Provisions.
Aegon’s group share of net assets of joint ventures, as presented in the table above, is less than Aegon’s share of the net assets as presented in the summarized financial information on a 100% basis, due to the inclusion of third parties in the joint ventures.
The following table includes the summarized financial information of the joint ventures based on the Group’s relative holding.
|
AMVEST |
Other Joint ventures | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
|
Post-tax profit or loss |
126 | 106 | 35 | 28 | ||||||||||||
|
Other comprehensive income |
- | 2 | (14 | ) | 7 | |||||||||||
|
Total comprehensive income |
126 | 108 | 20 | 34 | ||||||||||||