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The fair values of Aegon USA’s CMBS instruments were determined as follows: 

<img src='content_image/253789.jpg'>

## Asset-backed securities 

Aegon Americas, Aegon the Netherlands and Aegon UK hold EUR 5,861 million (2012: EUR 5,744 million) of AFS ABS instruments of which EUR 2,592 million (2012: EUR 2,908 million) is held by Aegon USA, EUR 1,563 million (2012 : EUR 1,103 million) by Aegon the Netherlands and EUR 1,682 million (2012: EUR 1,674 million) by by Aegon UK. Additionally, Aegon Americas has investments in ABS of EUR 24 million (2012: EUR 16 million), which are classified as fair value through profit or loss. ABS are securitizations of underlying pools of credit card receivables, auto financing loans, small business loans, bank loans, and other receivables. The underlying assets of the asset backed securities have been pooled together and sold in tranches with varying credit ratings. 

The total gross unrealized loss on AFS ABS of Aegon Americas, Aegon the Netherlands and Aegon UK amounts to EUR 99 million. 

Aegon USA has 52 million of this gross unrealized loss, followed by Aegon the Netherlands at 40 million and Aegon UK at 7 million. 

The unrealized loss in the sector is primarily a result of the credit crisis that started in 2007 which resulted in weak liquidity and increased credit spreads. The stronger financial and economic conditions in 2013 have helped stabilize the performance of the underlying collateral backing many of these securities. New issuance in the asset-backed sector has been weak but buyers began returning to the market. The combination of these factors has led to a decrease in credit spreads in 2013. 

The breakdown by quality of the available-for-sale ABS portfolio of Aegon USA, Aegon the Netherlands & Aegon UK is as follows: 

<img src='content_image/253788.jpg'>

<img src='content_image/253787.jpg'>

There were no individual issuers rated below investment grade in this ABS sector which has unrealized loss position greater than EUR 25 million. 

The fair values of Aegon USA, Aegon the Netherlands & Aegon UK ABS instruments were determined as follows: 

<img src='content_image/253786.jpg'>

## Corporate - Financial sector 

The Corporate Financial Sector is further subdivided into banking, brokerage, insurance, REIT’s and financial-other sub-sectors. A majority of the gross unrealized loss is from the banking sub-sector. Companies within Aegon’s financial sector are generally high in credit quality and, as a whole, represent a large portion of the corporate debt market. 

<img src='content_image/253785.jpg'>

<img src='content_image/253784.jpg'>

