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Social Insurance Institution (ZUS) of Poland. Furthermore, as a result of the changes, membership for the purpose of paying future contributions is to become voluntary. Additionally, ZUS is to provide the retirement benefits to members, requiring a management company to transfer to ZUS the remaining assets, commencing ten years before a member reaches retirement age. As a result, Aegon wrote off the intangible assets on its balance sheet in 2013, resulting in a loss of EUR 192 million before tax. 

In Slovakia, Aegon announced its withdrawal from the voluntary pension business in 2011, and exited the market in 2013. 

Since September 2012 there has been a significant reduction in the contribution rate payable into private pension funds in Slovakia. Additionally, as of new legislation in 2013, it is no longer mandatory to join a private pension fund (Pillar II). 

As of 2013 in Turkey, in accordance with legislative changes enacted in 2012, a reduction is applied to the maximum chargeable level of entrance fees, administration fees, and asset management fees. From 2013, pension contributions are no longer subject to tax incentives; instead, members receive 25% of their contributions in the form of direct support from the state. 

In the Czech Republic, as of January 2013, former pension companies were transformed into management companies managing newly launched Pillar II and Pillar III pension funds. These exist alongside the so-called transformation fund, into which savings accumulated to the end of 2012 were placed. Aegon elected not to enter Pillar II in the Czech market. Aegon operated a transformation fund throughout 2013. On December 30, 2013, Aegon disposed of its pension line of business, and thus exited the Czech pension market. 

## Non-life 

Aegon Hungary offers non-life cover (household, car insurance, and some wealth industrial risk). Aegon is the leading 1  insurance company in the Hungarian household market. In recent years, margins on non-life insurance in Hungary have been attractive. Moreover, household insurance provides considerable opportunities for cross-selling life insurance. 

As part of Aegon’s regional expansion, Aegon Hungary opened branch offices in Slovakia in 2010, and in Poland in 2011, selling household insurance policies in these markets. 

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## Competition 

Aegon is among the biggest providers operating in the life insurance market in Hungary. In 2013, it was the second largest 2 provider in Hungary, based on the first nine months’ standardized premium income, and the third largest 3  provider in the non-life insurance market. Aegon is also a significant market participant in Poland 4  and Ukraine 5 . As of September 2013, it was ranked fifth for unit-linked products in Poland, based on gross written premiums. Aegon is not a significant market participant in those markets in which it was relatively recently incorporated: Aegon Slovakia (incorporated in 2003); Aegon Czech Republic (incorporated in 2004); and Aegon Romania (incorporated in 2008). Similarly, Aegon is not a significant participant in Turkey, in which it acquired its business in 2008. 

In Hungary’s voluntary pension fund market, Aegon was ranked third 6  for both the number of its members and its managed assets in 2012. For managed assets, in 2013 Aegon was ranked fifth 7 in the Slovakian private pension market. In Poland, Aegon was ranked eighth 8  for number of members and ninth 9  for managed assets in 2013. As of December 31, 2013, Aegon ranked seventh 10 in the Romanian mandatory private pension market, both for net assets under management and number of members. 

## Regulation and supervision 

In Central & Eastern Europe, a single insurance company may only be licensed for, and conduct, one of either a life insurance or non-life insurance business, and not both. In Hungary, however, insurance companies established before 1995 are exempt from this rule. This exemption applies to Aegon Hungary. 

State supervision and oversight of the insurance industry is conducted by the following bodies and institutions: 

■ The Central Bank of Hungary (MNB); 

■ National Bank of Slovakia (NBS); 

■ Czech National Bank (CNB); 

■ Polish Financial Supervisory Authority (KNF); 

■ Authority for Financial Supervision (ASF) (Romania); 

■ Undersecretariat of Treasury (Turkey); 

■ National Commission for State Regulation of Ukrainian Financial Services Markets. 

The above-mentioned authorities promote consumer protection and have the right to investigate prudential activities and conduct, financial position and solvency, and compliance with all relevant laws. 

