v3.26.1
(Re)Insurance contracts and investment contracts with discretionary participation features
 6 Months Ended
Jun. 30, 2026
Insurance Reinsurance Contracts And Investment Contracts With Discretionary Participation Features [Abstract]  
(Re)Insurance contracts and investment contracts with discretionary participation features
12 (Re)Insurance contracts and investment contracts with discretionary participation features
12.1 Contracts by measurement model
Below table presents the assets and liabilities balances of insurance contracts and reinsurance contracts held, by measurement model. This includes contracts measured under Premium allocation approach (PAA) and contracts measured under the General model and Variable fee approach (i.e.
Non-PAA).
 
    
June 30, 2026 
      December 31, 2025  
By measurement model
     Non-PAA         PAA         Total        Non-PAA         PAA      Total  
Insurance contract assets
      16        -        16        18        -        18  
Insurance contract liabilities
      137,357        50        137,407        176,024        44        176,067  
Insurance contracts net balance
   
 
137,341
 
   
 
50
 
   
 
137,391
 
   
 
176,006
 
   
 
44
 
   
 
176,049
 
Reinsurance contract assets
      17,365        9        17,374        17,146        8        17,153  
Reinsurance contract liabilities
      201        -        201        195        -        195  
Reinsurance contracts net balance
   
 
17,164
 
   
 
9
 
   
 
17,173
 
   
 
16,950
 
   
 
8
 
   
 
16,958
 
 
 
 
 
 
 
All groups of investment contracts with discretionary participation features (DPF) were measured under
Non-PAA
and were in a liability position at the reporting date and comparative period.
12.2 Movements in carrying amounts on (re)insurance contracts and investment contracts with DPF
The following tables presents the reconciliation of the net carrying amounts of insurance contracts, reinsurance contracts held and investment contracts with DPF.
12.2.1 Movement schedules by type of liability (or asset)
•   For insurance contracts and investment contracts with DPF - Liability for remaining coverage excluding loss component (LFRC), Loss component (LC) and Liability for incurred claims (LFIC)
•   For reinsurance contracts held - Asset for remaining coverage excluding loss recovery component (AFRC), Loss recovery component (LRC) and Asset for incurred claims (AFIC).
 
$                 $                 $                 $                 $                 $                 $                 $                
                         
1H 2026
                         
FY 2025
  
Insurance contracts
(Non-PAA)
- by type
   
LFRC
    
LC
    
LFIC
    
Total
    
LFRC
    
LC
    
LFIC
    
Total
  
Opening assets
   
 
59
 
  
 
(27
) 
  
 
(14
) 
  
 
18
 
  
 
1,886
 
  
 
(1,373
) 
  
 
(387
) 
  
 
125
 
Opening liabilities
   
141,597
    
2,829
    
31,597
    
176,024
    
159,857
    
1,252
    
27,209
    
188,318
  
Net opening balance
   
 
141,539
 
  
 
2,856
 
  
 
31,611
 
  
 
176,006
 
  
 
157,971
 
  
 
2,625
 
  
 
27,596
 
  
 
188,193
 
Insurance revenue
   
 
(4,265
) 
  
 
-
 
  
 
-
 
  
 
(4,265
) 
  
 
(8,906
) 
  
 
-
 
  
 
-
 
  
 
(8,906
) 
Incurred claims and expenses
   
 
-
 
  
 
(222
) 
  
 
3,592
 
  
 
3,370
 
  
 
-
 
  
 
(378
) 
  
 
7,967
 
  
 
7,589
 
Amortization of acquisition cash flows
   
 
276
 
  
 
-
 
  
 
-
 
  
 
276
 
  
 
538
 
  
 
-
 
  
 
-
 
  
 
538
 
Onerous contract losses (and reversals)
   
 
-
 
  
 
888
 
  
 
-
 
  
 
888
 
  
 
-
 
  
 
1,139
 
  
 
-
 
  
 
1,139
 
Adjustments for incurred claims
   
-
    
-
    
-
    
-
    
-
    
-
    
1
    
1
  
Insurance service expenses
   
 
276
 
  
 
666
 
  
 
3,593
 
  
 
4,535
 
  
 
538
 
  
 
762
 
  
 
7,967
 
  
 
9,267
 
Investment components
   
 
(2,106
) 
  
 
-
 
  
 
2,106
 
  
 
-
 
  
 
(5,809
) 
  
 
-
 
  
 
5,809
 
  
 
-
 
Insurance service result
   
 
(6,095
) 
  
 
666
 
  
 
5,699
 
  
 
270
 
  
 
(14,177
) 
  
 
762
 
  
 
13,776
 
  
 
361
 
Insurance finance (income) / expenses
   
 
5,285
 
  
 
49
 
  
 
-
 
  
 
5,334
 
  
 
18,005
 
  
 
138
 
  
 
-
 
  
 
18,143
 
Cash flows
   
 
(2,985
) 
  
 
(206
) 
  
 
(2,047
) 
  
 
(5,238
) 
  
 
(4,721
) 
  
 
(353
) 
  
 
(6,252
) 
  
 
(11,326
) 
Disposal of a business
   
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
(7
) 
  
 
-
 
  
 
-
 
  
 
(7
) 
Transfers to disposal groups
   
 
(42,936
) 
  
 
(11
) 
  
 
(29
) 
  
 
(42,977
) 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
Transfer (to)/from other headings
   
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
(10
) 
  
 
10
 
  
 
-
 
  
 
-
 
Net exchange differences
   
 
2,902
 
  
 
90
 
  
 
954
 
  
 
3,946
 
  
 
(15,522
) 
  
 
(326
) 
  
 
(3,510
) 
  
 
(19,358
) 
Net closing balance
   
 
97,710
 
  
 
3,445
 
  
 
36,187
 
  
 
137,341
 
  
 
141,539
 
  
 
2,856
 
  
 
31,611
 
  
 
176,006
 
Closing assets
   
 
62
 
  
 
(29
) 
  
 
(17
) 
  
 
16
 
  
 
59
 
  
 
(27
) 
  
 
(14
) 
  
 
18
 
Closing liabilities
   
 
97,772
 
  
 
3,416
 
  
 
36,170
 
  
 
137,357
 
  
 
141,597
 
  
 
2,829
 
  
 
31,597
 
  
 
176,024
 
                
                         
1H 2026
                         
FY 2025
  
Reinsurance contracts
(Non-PAA)
- by type
   
AFRC
    
LRC
    
AFIC
    
Total
    
AFRC
    
LRC
    
AFIC
    
Total
  
Opening assets
   
 
15,749
 
  
 
1,693
 
  
 
(296
) 
  
 
17,146
 
  
 
15,965
 
  
 
475
 
  
 
(426
) 
  
 
16,015
 
Opening liabilities
   
 
191
 
  
 
2
 
  
 
2
 
  
 
195
 
  
 
2,011
 
  
 
(1,270
) 
  
 
(439
) 
  
 
303
 
Net opening balance
   
 
15,558
 
  
 
1,690
 
  
 
(298
) 
  
 
16,950
 
  
 
13,954
 
  
 
1,745
 
  
 
13
 
  
 
15,712
 
Net expenses from reinsurance contracts
   
 
(48
) 
  
 
450
 
  
 
(29
) 
  
 
372
 
  
 
308
 
  
 
254
 
  
 
275
 
  
 
837
 
Other reinsurance finance income / (expenses)
   
 
137
 
  
 
31
 
  
 
-
 
  
 
168
 
  
 
613
 
  
 
69
 
  
 
-
 
  
 
681
 
Effect of reinsurer default risk changes
   
 
(7
) 
  
 
-
 
  
 
-
 
  
 
(7
) 
  
 
2
 
  
 
-
 
  
 
-
 
  
 
2
 
Total changes in the profit or loss and OCI
   
 
82
 
  
 
481
 
  
 
(29
) 
  
 
534
 
  
 
922
 
  
 
322
 
  
 
275
 
  
 
1,520
 
Cash flows
   
 
(654
) 
  
 
(104
) 
  
 
(29
) 
  
 
(788
) 
  
 
2,443
 
  
 
(166
) 
  
 
(597
) 
  
 
1,680
 
Transfers to disposal groups
   
 
4
 
  
 
-
 
  
 
-
 
  
 
4
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
Net exchange differences
   
 
418
 
  
 
55
 
  
 
(10
) 
  
 
464
 
  
 
(1,761
) 
  
 
(211
) 
  
 
10
 
  
 
(1,961
) 
Net closing balance
   
 
15,408
 
  
 
2,122
 
  
 
(366
) 
  
 
17,164
 
  
 
15,558
 
  
 
1,690
 
  
 
(298
) 
  
 
16,950
 
Closing assets
   
 
15,603
 
  
 
2,125
 
  
 
(363
) 
  
 
17,365
 
  
 
15,749
 
  
 
1,693
 
  
 
(296
) 
  
 
17,146
 
Closing liabilities
   
 
195
 
  
 
2
 
  
 
4
 
  
 
201
 
  
 
191
 
  
 
2
 
  
 
2
 
  
 
195
 
 
 
 
 
 
 
$                 $                 $                 $                 $                 $                 $                 $                
                         
1H 2026
                          
FY 2025
  
Investment contracts with DPF - by type
   
LFRC
    
LC
    
LFIC
    
Total
    
LFRC
    
LC
     
LFIC
    
Total
  
Opening assets
   
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
   
 
-
 
  
 
-
 
Opening liabilities
   
21,278
    
2
    
1
    
21,281
    
22,332
    
-
     
-
    
22,332
  
Net opening balance
   
 
21,278
 
  
 
2
 
  
 
1
 
  
 
21,281
 
  
 
22,332
 
  
 
-
 
   
 
-
 
  
 
22,332
 
Insurance revenue
   
 
(19
) 
  
 
-
 
  
 
-
 
  
 
(19
) 
  
 
(77
) 
  
 
-
 
   
 
-
 
  
 
(77
) 
Incurred claims and expenses
   
 
-
 
  
 
-
 
  
 
7
 
  
 
6
 
  
 
-
 
  
 
-
 
   
 
30
 
  
 
30
 
Onerous contract losses (and reversals)
   
 
-
 
  
 
(1
) 
  
 
-
 
  
 
(1
) 
  
 
-
 
  
 
2
 
   
 
-
 
  
 
2
 
Insurance service expenses
   
 
-
 
  
 
(1
) 
  
 
7
 
  
 
6
 
  
 
-
 
  
 
2
 
   
 
30
 
  
 
32
 
Investment components
   
 
(838
) 
  
 
-
 
  
 
838
 
  
 
-
 
  
 
(3,109
) 
  
 
-
 
   
 
3,109
 
  
 
-
 
Insurance service result
   
 
(857
) 
  
 
(1
) 
  
 
844
 
  
 
(13
) 
  
 
(3,186
) 
  
 
2
 
   
 
3,139
 
  
 
(45
) 
Insurance finance (income) / expenses
   
 
(440
) 
  
 
-
 
  
 
-
 
  
 
(440
) 
  
 
2,916
 
  
 
-
 
   
 
-
 
  
 
2,916
 
Cash flows
   
 
99
 
  
 
-
 
  
 
(845
) 
  
 
(746
) 
  
 
394
 
  
 
-
 
   
 
(3,138
) 
  
 
(2,744
) 
Transfers to disposal groups
   
 
(20,194
) 
  
 
(1
) 
  
 
-
 
  
 
(20,196
) 
  
 
-
 
  
 
-
 
   
 
-
 
  
 
-
 
Net exchange differences
   
 
133
 
  
 
-
 
  
 
-
 
  
 
133
 
  
 
(1,177
) 
  
 
-
 
   
 
-
 
  
 
(1,177
) 
Net closing balance
   
 
20
 
  
 
-
 
  
 
-
 
  
 
20
 
  
 
21,278
 
  
 
2
 
   
 
1
 
  
 
21,281
 
Closing assets
   
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
   
 
-
 
  
 
-
 
Closing liabilities
   
 
20
 
  
 
-
 
  
 
-
 
  
 
20
 
  
 
21,278
 
  
 
2
 
   
 
1
 
  
 
21,281
 
12.2.2 Movement schedules by measurement component
Measurement components comprise Best estimate liability (BEL), Risk adjustment (RA), and Contractual service margin (CSM).
 
$                 $                 $                 $                 $                 $                 $                 $                
                         
1H 2026
                         
FY 2025
  
Insurance contracts
(Non-PAA)
- by component
   
BEL
    
RA
    
CSM
    
Total
    
BEL
    
RA
    
CSM
    
Total
  
Opening assets
   
 
100
 
  
 
(35
) 
  
 
(47
) 
  
 
18
 
  
 
452
 
  
 
(323
) 
  
 
(5
) 
  
 
125
 
Opening liabilities
   
164,531
    
3,134
    
8,359
    
176,024
    
176,063
    
3,295
    
8,959
    
188,318
  
Net opening balance
   
 
164,430
 
  
 
3,169
 
  
 
8,406
 
  
 
176,006
 
  
 
175,611
 
  
 
3,618
 
  
 
8,964
 
  
 
188,193
 
Changes in estimates that adjust CSM
   
 
(27
) 
  
 
(70
) 
  
 
96
 
  
 
-
 
  
 
(371
) 
  
 
(78
) 
  
 
449
 
  
 
-
 
Changes in estimates that adjust onerous contracts
   
 
717
 
  
 
143
 
  
 
-
 
  
 
859
 
  
 
1,069
 
  
 
29
 
  
 
-
 
  
 
1,098
 
New contracts issued –
non-onerous
   
 
(468
) 
  
 
79
 
  
 
390
 
  
 
-
 
  
 
(788
) 
  
 
118
 
  
 
669
 
  
 
-
 
New contracts issued – onerous
   
 
19
 
  
 
10
 
  
 
-
 
  
 
29
 
  
 
25
 
  
 
17
 
  
 
-
 
  
 
42
 
Changes that relate to future service
   
 
241
 
  
 
162
 
  
 
486
 
  
 
888
 
  
 
(65
) 
  
 
86
 
  
 
1,118
 
  
 
1,139
 
Earnings released from CSM
   
 
-
 
  
 
-
 
  
 
(431
) 
  
 
(431
) 
  
 
-
 
  
 
-
 
  
 
(930
) 
  
 
(930
) 
Release of risk adjustment
   
 
-
 
  
 
(132
) 
  
 
-
 
  
 
(132
) 
  
 
-
 
  
 
(278
) 
  
 
-
 
  
 
(278
) 
Experience adjustments on current service
   
 
(58
) 
  
 
-
 
  
 
-
 
  
 
(58
) 
  
 
439
 
  
 
-
 
  
 
-
 
  
 
439
 
Revenue from policyholder tax expenses incurred
   
 
3
 
  
 
-
 
  
 
-
 
  
 
3
 
  
 
(11
) 
  
 
-
 
  
 
-
 
  
 
(11
) 
Changes that relate to current service
   
 
(55
) 
  
 
(132
) 
  
 
(431
) 
  
 
(618
) 
  
 
428
 
  
 
(278
) 
  
 
(930
) 
  
 
(780
) 
Experience adjustments on incurred claims
   
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
1
 
  
 
-
 
  
 
-
 
  
 
1
 
Changes that relate to past service
   
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
1
 
  
 
-
 
  
 
-
 
  
 
1
 
Insurance service result
   
 
186
 
  
 
30
 
  
 
54
 
  
 
270
 
  
 
364
 
  
 
(191
) 
  
 
189
 
  
 
361
 
General model
                 
Interest accreted to insurance contracts
   
 
1,301
 
  
 
62
 
  
 
130
 
  
 
1,493
 
  
 
2,654
 
  
 
141
 
  
 
226
 
  
 
3,021
 
Interest rate and other financial assumption changes
   
 
196
 
  
 
1
 
  
 
-
 
  
 
198
 
  
 
1,775
 
  
 
(4
) 
  
 
-
 
  
 
1,771
 
Revaluation of changes in
non-financial
assumptions and experience adjustments to current interest rates
   
 
(45
) 
  
 
(4
) 
  
 
-
 
  
 
(49
) 
  
 
(138
) 
  
 
10
 
  
 
-
 
  
 
(128
) 
Variable fee approach
                 
Change in fair value of the underlying assets
   
 
4,309
 
  
 
-
 
  
 
-
 
  
 
4,309
 
  
 
14,316
 
  
 
-
 
  
 
-
 
  
 
14,316
 
Change in fulfilment value - risk mitigation option
   
 
(616
) 
  
 
-
 
  
 
-
 
  
 
(616
) 
  
 
(836
) 
  
 
-
 
  
 
-
 
  
 
(836
) 
Insurance finance (income) / expenses
   
 
5,145
 
  
 
59
 
  
 
130
 
  
 
5,334
 
  
 
17,770
 
  
 
148
 
  
 
226
 
  
 
18,143
 
Premiums received
   
 
6,651
 
  
 
-
 
  
 
-
 
  
 
6,651
 
  
 
14,405
 
  
 
-
 
  
 
-
 
  
 
14,405
 
Claims, benefits and expenses paid
   
 
(11,240
) 
  
 
-
 
  
 
-
 
  
 
(11,240
) 
  
 
(24,576
) 
  
 
-
 
  
 
-
 
  
 
(24,576
) 
Acquisition costs paid
   
 
(638
) 
  
 
-
 
  
 
-
 
  
 
(638
) 
  
 
(1,126
) 
  
 
-
 
  
 
-
 
  
 
(1,126
) 
Other
   
 
(11
) 
  
 
-
 
  
 
-
 
  
 
(11
) 
  
 
(30
) 
  
 
-
 
  
 
-
 
  
 
(30
) 
Cash flows
   
 
(5,238
) 
  
 
-
 
  
 
-
 
  
 
(5,238
) 
  
 
(11,326
) 
  
 
-
 
  
 
-
 
  
 
(11,326
) 
Disposal of a business
   
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
(7
) 
  
 
-
 
  
 
-
 
  
 
(7
) 
Transfers to disposal groups
   
 
(41,515
) 
  
 
(218
) 
  
 
(1,244
) 
  
 
(42,977
) 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
Other movements
   
 
(41,515
) 
  
 
(218
) 
  
 
(1,244
) 
  
 
(42,977
) 
  
 
(7
) 
  
 
-
 
  
 
-
 
  
 
(7
) 
Net exchange differences
   
 
3,651
 
  
 
85
 
  
 
210
 
  
 
3,946
 
  
 
(17,981
) 
  
 
(405
) 
  
 
(972
) 
  
 
(19,358
) 
Net closing balance
   
 
126,659
 
  
 
3,126
 
  
 
7,556
 
  
 
137,341
 
  
 
164,430
 
  
 
3,169
 
  
 
8,406
 
  
 
176,006
 
Closing assets
   
 
104
 
  
 
(38
) 
  
 
(49
) 
  
 
16
 
  
 
100
 
  
 
(35
) 
  
 
(47
) 
  
 
18
 
Closing liabilities
   
 
126,764
 
  
 
3,087
 
  
 
7,507
 
  
 
137,357
 
  
 
164,531
 
  
 
3,134
 
  
 
8,359
 
  
 
176,024
 
 
 
 
 
 
 
$                 $                 $                 $                 $                 $                 $                 $                
                        
1H 2026
                         
FY 2025
  
Reinsurance contracts
(Non-PAA)
- by component
  
BEL
    
RA
    
CSM
    
Total
    
BEL
    
RA
    
CSM
    
Total
  
Opening assets
  
 
15,816
 
  
 
691
 
  
 
639
 
  
 
17,146
 
  
 
15,374
 
  
 
433
 
  
 
208
 
  
 
16,015
 
Opening liabilities
  
 
172
 
  
 
(30
) 
  
 
54
 
  
 
195
 
  
 
693
 
  
 
(361
) 
  
 
(29
) 
  
 
303
 
Net opening balance
  
 
15,644
 
  
 
721
 
  
 
585
 
  
 
16,950
 
  
 
14,681
 
  
 
794
 
  
 
237
 
  
 
15,712
 
Changes in estimates that adjust CSM
  
 
(53
) 
  
 
13
 
  
 
41
 
  
 
-
 
  
 
(234
) 
  
 
(20
) 
  
 
254
 
  
 
-
 
Changes in estimates that adjust underlying onerous contracts
  
 
476
 
  
 
(13
) 
  
 
(12
) 
  
 
450
 
  
 
591
 
  
 
9
 
  
 
18
 
  
 
618
 
New reinsurance contracts recognized
  
 
(11
) 
  
 
3
 
  
 
9
 
  
 
1
 
  
 
(200
) 
  
 
60
 
  
 
141
 
  
 
1
 
Reversals of loss recovery component
  
 
-
 
  
 
-
 
  
 
1
 
  
 
1
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
Changes that relate to future service
  
 
411
 
  
 
2
 
  
 
37
 
  
 
451
 
  
 
157
 
  
 
50
 
  
 
413
 
  
 
620
 
CSM recognized for service received
  
 
-
 
  
 
-
 
  
 
(18
) 
  
 
(18
) 
  
 
-
 
  
 
-
 
  
 
(11
) 
  
 
(11
) 
Release of risk adjustment
  
 
-
 
  
 
(35
) 
  
 
-
 
  
 
(35
) 
  
 
-
 
  
 
(72
) 
  
 
-
 
  
 
(72
) 
Experience adjustment on current service
  
 
(26
) 
  
 
-
 
  
 
-
 
  
 
(26
) 
  
 
300
 
  
 
-
 
  
 
-
 
  
 
300
 
Changes that relate to current service
  
 
(26
) 
  
 
(35
) 
  
 
(18
) 
  
 
(79
) 
  
 
300
 
  
 
(72
) 
  
 
(11
) 
  
 
217
 
Net income/ (expenses) on reinsurance held
  
 
386
 
  
 
(32
) 
  
 
19
 
  
 
372
 
  
 
457
 
  
 
(22
) 
  
 
402
 
  
 
837
 
Reinsurance finance income / (expenses)
  
 
144
 
  
 
18
 
  
 
-
 
  
 
162
 
  
 
652
 
  
 
43
 
  
 
(12
) 
  
 
683
 
Premiums paid (net of commission)
  
 
628
 
  
 
-
 
  
 
-
 
  
 
628
 
  
 
4,950
 
  
 
-
 
  
 
-
 
  
 
4,950
 
Amounts received
  
 
(1,415
) 
  
 
-
 
  
 
-
 
  
 
(1,415
) 
  
 
(3,270
) 
  
 
-
 
  
 
-
 
  
 
(3,270
) 
Other
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
(1
) 
  
 
-
 
  
 
-
 
  
 
(1
) 
Cash flows
  
 
(788
) 
  
 
-
 
  
 
-
 
  
 
(788
) 
  
 
1,680
 
  
 
-
 
  
 
-
 
  
 
1,680
 
Transfers to disposal groups
  
 
6
 
  
 
-
 
  
 
(2
) 
  
 
4
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
Net exchange difference
  
 
427
 
  
 
20
 
  
 
17
 
  
 
464
 
  
 
(1,826
) 
  
 
(94
) 
  
 
(42
) 
  
 
(1,961
) 
Net closing balance
  
 
15,819
 
  
 
726
 
  
 
619
 
  
 
17,164
 
  
 
15,644
 
  
 
721
 
  
 
585
 
  
 
16,950
 
Closing assets
  
 
15,998
 
  
 
685
 
  
 
682
 
  
 
17,365
 
  
 
15,816
 
  
 
691
 
  
 
639
 
  
 
17,146
 
Closing liabilities
  
 
179
 
  
 
(41
) 
  
 
62
 
  
 
201
 
  
 
172
 
  
 
(30
) 
  
 
54
 
  
 
195
 
 
$                 $                 $                 $                 $                 $                 $                 $                
                        
1H 2026
                         
FY 2025
  
Investment contracts with DPF - by component
  
BEL
    
RA
    
CSM
    
Total
    
BEL
    
RA
    
CSM
    
Total
  
Opening assets
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
Opening liabilities
  
20,940
    
97
    
245
    
21,281
    
21,987
    
112
    
233
    
22,332
  
Net opening balance
  
 
20,940
 
  
 
97
 
  
 
245
 
  
 
21,281
 
  
 
21,987
 
  
 
112
 
  
 
233
 
  
 
22,332
 
Changes in estimates that adjust CSM
  
 
24
 
  
 
(4
) 
  
 
(20
) 
  
 
-
 
  
 
(66
) 
  
 
5
 
  
 
61
 
  
 
-
 
Changes in estimates that adjust onerous contracts
  
 
(1
) 
  
 
-
 
  
 
-
 
  
 
(1
) 
  
 
2
 
  
 
-
 
  
 
-
 
  
 
2
 
New contracts issued –
non-onerous
  
 
(2
) 
  
 
-
 
  
 
1
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
Changes that relate to future service
  
 
22
 
  
 
(4
) 
  
 
(19
) 
  
 
(1
) 
  
 
(64
) 
  
 
5
 
  
 
61
 
  
 
2
 
Earnings released from CSM
  
 
-
 
  
 
-
 
  
 
(9
) 
  
 
(9
) 
  
 
-
 
  
 
-
 
  
 
(37
) 
  
 
(37
) 
Release of risk adjustment
  
 
-
 
  
 
(4
) 
  
 
-
 
  
 
(4
) 
  
 
-
 
  
 
(14
) 
  
 
-
 
  
 
(14
) 
Experience adjustments on current service
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
4
 
  
 
-
 
  
 
-
 
  
 
4
 
Changes that relate to current service
  
 
-
 
  
 
(4
) 
  
 
(9
) 
  
 
(13
) 
  
 
4
 
  
 
(14
) 
  
 
(37
) 
  
 
(47
) 
Insurance service result
  
 
22
 
  
 
(7
) 
  
 
(28
) 
  
 
(13
) 
  
 
(60
) 
  
 
(10
) 
  
 
25
 
  
 
(45
) 
General model
                
Changes in interest rates and other financial assumptions
  
 
1
 
  
 
-
 
  
 
-
 
  
 
1
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
Variable fee approach
                
Change in fair value of the underlying assets
  
 
(441
) 
  
 
-
 
  
 
-
 
  
 
(441
) 
  
 
2,916
 
  
 
-
 
  
 
-
 
  
 
2,916
 
Insurance finance (income) / expenses
  
 
(440
) 
  
 
-
 
  
 
-
 
  
 
(440
) 
  
 
2,916
 
  
 
-
 
  
 
-
 
  
 
2,916
 
Premiums received
  
 
106
 
  
 
-
 
  
 
-
 
  
 
106
 
  
 
413
 
  
 
-
 
  
 
-
 
  
 
413
 
Claims, benefits and expenses paid
  
 
(848
) 
  
 
-
 
  
 
-
 
  
 
(848
) 
  
 
(3,157
) 
  
 
-
 
  
 
-
 
  
 
(3,157
) 
Acquisition costs paid
  
 
(2
) 
  
 
-
 
  
 
-
 
  
 
(2
) 
  
 
(2
) 
  
 
-
 
  
 
-
 
  
 
(2
) 
Other
  
 
(1
) 
  
 
-
 
  
 
-
 
  
 
(1
) 
  
 
1
 
  
 
-
 
  
 
-
 
  
 
1
 
Cash flows
  
 
(746
) 
  
 
-
 
  
 
-
 
  
 
(746
) 
  
 
(2,744
) 
  
 
-
 
  
 
-
 
  
 
(2,744
) 
Transfers to disposal groups
  
 
(19,891
) 
  
 
(90
) 
  
 
(214
) 
  
 
(20,196
) 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
Net exchange differences
  
 
131
 
  
 
1
 
  
 
2
 
  
 
133
 
  
 
(1,159
) 
  
 
(6
) 
  
 
(13
) 
  
 
(1,177
) 
Net closing balance
  
 
15
 
  
 
-
 
  
 
4
 
  
 
20
 
  
 
20,940
 
  
 
97
 
  
 
245
 
  
 
21,281
 
Closing assets
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
Closing liabilities
  
 
15
 
  
 
-
 
  
 
4
 
  
 
20
 
  
 
20,940
 
  
 
97
 
  
 
245
 
  
 
21,281
 
 
 
 
 
 
 
12.2.3 Movement schedules of contractual service margin by transition method
The table below presents the reconciliation of the contractual service margin recognized for contracts in force as of the transition date. The transition methods applied to these contracts include the Modified retrospective approach (MRA), Fair value approach (FVA) and Other applicable method.
 
   
     Insurance contracts     Reinsurance contracts held     Investment contracts with DPF  
   
      MRA     FVA     Other     Total     MRA      FVA     Other     Total     MRA      FVA     Other      Total  
   
On January 1, 2026
   
 
879
 
  
 
4,192
 
  
 
3,335
 
  
 
8,406
 
  
 
-
 
   
 
245
 
  
 
340
 
  
 
585
 
  
 
-
 
   
 
244
 
  
 
-
 
   
 
245
 
   
Changes in estimates that adjust CSM
      (167 )      355       (92 )      96       -        -       40       41       -        (23 )      2        (20 ) 
   
Changes in estimates that adjust onerous contracts      -       -       -       -       -        (9 )      (3 )      (12 )      -        -       -        -  
   
New contracts recognized
      -       -       390       390       -        -       9       9       -        -       1        1  
   
Earnings released from CSM
      (49 )      (234 )      (148 )      (431 )      -        (1 )      (17 )      (18 )      -        (9 )      -        (9 ) 
   
Insurance finance (income) / expenses
      1       72       57       130       -        (7 )      7       -       -        -       -        -  
   
Net exchange differences
      20       114       76       210       -        6       10       17       -        2       -        2  
   
Transfers to disposal groups
      -       (275 )      (969 )      (1,244 )      -        (2 )      -       (2 )      -        (214 )      -        (214 ) 
   
On June 30, 2026
   
 
684
 
  
 
4,223
 
  
 
2,649
 
  
 
7,556
 
  
 
-
 
   
 
232
 
  
 
387
 
  
 
619
 
  
 
-
 
   
 
-
 
  
 
4
 
   
 
4
 
On January 1, 2025
   
 
1,457
 
  
 
4,494
 
  
 
3,013
 
  
 
8,964
 
  
 
-
 
   
 
28
 
  
 
208
 
  
 
237
 
  
 
-
 
   
 
233
 
  
 
-
 
   
 
233
 
Changes in estimates that adjust CSM
      (296 )      563       181       449       -        224       30       254       -        61       -        61  
Changes in estimates that adjust onerous contracts      -       -       -       -       -        18       -       18       -        -       -        -  
New contracts recognized
      -       -       669       669       -        -       141       141       -        -       -        -  
Earnings released from CSM
      (130 )      (483 )      (317 )      (930 )      -        9       (20 )      (11 )      -        (37 )      -        (37 ) 
Insurance finance (income) / expenses
      3       129       93       226       -        (23 )      11       (12 )      -        -       -        -  
   
Net exchange differences
      (156 )      (511 )      (305 )      (972 )      -        (11 )      (30 )      (42 )      -        (13 )      -        (13 ) 
On December 31, 2025
   
 
879
 
  
 
4,192
 
  
 
3,335
 
  
 
8,406
 
  
 
-
 
   
 
245
 
  
 
340
 
  
 
585
 
  
 
-
 
   
 
244
 
  
 
-
 
   
 
245
 
12.3 Critical judgments and estimates
Compared to the insurance contracts related critical judgements and estimates (valuation methods, actuarial assumptions) applied in the Annual Report 2025, material changes were processed in 1H 2026 related to risk-free yield curves, illiquidity premium curves and changes in methods and inputs used to measure fulfilment cash flows.
12.3.1 Risk-free yield curve
Aegon has identified various rates available in the EUR, GBP and USD markets that can be used as a basis for the risk-free yield curve, including EURIBOR swap rates for EUR, reformed Sterling Overnight Index Average (SONIA) for GBP, and Secured Overnight Funding Rates (SOFR) and US Treasury rates for USD. EURIBOR rates are adjusted for credit risk by subtracting a credit risk allowance. No adjustment is made to overnight swap rates and US Treasury rates, as the credit risk of these instruments is deemed negligible.
A full risk-free yield curve is derived by first interpolating between tenors for which market data are available, and then extrapolating the yield curve beyond market-observable maturities. Discount rates converge to an ultimate forward rate (linear grading over a
10-year
period is assumed for the USD and EUR). A uniform last liquid point for EUR and USD is set at 30 years, while GBP is set at 50 years. The ultimate forward rates reflect a long-term view on nominal interest rates and are set by management for each currency, taking into account expected real interest rates and long-term inflation, together with the current market environment. The current ultimate forward rate assumption is 3.40% (December 31, 2025: 3.40%).
Aegon reviews the risk-free last liquid point and ultimate forward rates at least annually which, although expected to be infrequent, may lead to assumption updates if there are significant changes in market conditions.
 
    
June 30, 2026
      December 31, 2025  
Risk-free yield curves (%)
   
1
year
     
5
years
     
10
years
     
15
years
     
20
years
     
30
years
      1
year		      5
years		      10
years		      15
years		      20
years		      30
years		  
GBP
      3.99        4.07        4.38        4.68        4.86        4.90        3.54        3.67        4.04        4.36        4.54        4.59  
USD
      4.07        4.25        4.53        4.98        5.22        5.00        3.48        3.77        4.28        4.84        5.16        5.00  
 
 
 
 
 
 
Illiquidity premium (ILP)
Aegon updates the reference portfolio quarterly, and
the
ILP last liquid point and ILP ultimate forward rate are revised accordingly. The ILP curves of Aegon’s significant portfolios are presented below. These ILP curves are added to the risk-free yields of the currency in which the cash flows of the products are denominated.
 
         
June 30, 2026
      December 31, 2025  
ILP per portfolio (%)
     Country     1
 year		      5
years		      10
years		      15
years		      20
years		      30
years		      1
 year		      5
years		      10
years		      15
years		      20
years		      30
years		  
Fixed Deferred Annuity
    US      0.90        0.98        1.07        1.16        1.16        1.17        0.92        0.99        1.06        1.15        1.16        1.16  
Indexed Universal Life
    US      1.08        1.12        1.15        1.20        1.20        1.21        1.01        1.07        1.13        1.19        1.19        1.20  
Long-Term Care
    US      0.83        0.84        0.85        1.06        1.15        1.32        0.82        0.83        0.84        1.06        1.14        1.31  
Traditional Life
    US      0.93        0.95        0.97        1.13        1.19        1.31        0.91        0.94        0.96        1.11        1.17        1.28  
Universal Life
    US      0.85        0.87        0.90        1.12        1.17        1.29        0.85        0.88        0.91        1.07        1.13        1.27  
Variable Annuities
    US      0.55        0.63        0.64        0.64        0.62        0.65        0.36        0.51        0.64        0.64        0.63        0.65  
Annuities
    UK      0.90        0.90        0.90        0.90        0.90        0.89        0.76        0.76        0.76        0.76        0.76        0.72  
Individual Protection
    UK      0.43        0.43        0.43        0.43        0.43        0.42        0.45        0.45        0.45        0.45        0.45        0.44  
12.3.2 Changes in methods and inputs used to measure fulfillment cash flows
During 1H 2026, Aegon conducted its annual review of assumptions and model updates for the Americas and TLB.
Non-financial
assumption changes resulted in an unfavorable impact of EUR 304 
million, mainly reflecting the more efficient use of withdrawals and surrenders of Variable Annuities policyholders together with addressing other policyholder behavior experience variances which resulted in higher-than-expected premium persistency in older Universal Life policies, higher- than-expected usage of accelerated living benefits and adverse lapse experience on Traditional Life policies. Further, mortality assumptions updates resulting in lower mortality improvement mainly for onerous, older Life policies also had an adverse impact.
However, these were partly offset by mortality assumption updates to lower future mortality in younger life insurance policies together with favorable mortality updates in annuities and from improved spread and profitability assumptions on the IUL product. 
Of the total impact, EUR 333 million was recognized in the income statement and EUR 42 million was recognized in the OCI and, EUR 71 million increased the CSM.
12.4 Risk mitigation
Aegon has chosen to apply the risk mitigation option and recognize changes in the fulfillment value of products with direct participation in the profit or loss and OCI, rather than adjusting the CSM. The adjustment to the CSM that would otherwise have been made in 1H 2026 is EUR 615 million (1H 2025: EUR 318 million).