161 ANNUAL REPORT 2010 NOTE 9 DERIVATIVES 1  Refer to note 47 for a summary of all financial assets and financial liabilities at fair value through profit or loss. Of these derivatives EUR 141 million net asset is current  (2009: EUR 77 million net liability). See note 3 for details on measurement of derivatives. AEGON utilizes derivative instruments as a part of its asset  liability risk management practices. The derivatives held for  risk management purposes are classified as economic hedges  to the extent that they do not qualify for hedge accounting,  or that AEGON has elected not to apply hedge accounting.  The economic hedges of certain exposures relate to an existing  asset or liability or the future reinvestment risk. In all cases,  these are in accordance with internal risk guidelines and are  closely monitored for continuing compliance.  significantly. Please refer to note 45 for more disclosures  about these guarantees.  Certain derivatives are used to add risk by selling protection in  the form of single name credit default swaps and tranches of  synthetic collateralized debt and commodity obligations.  Another strategy used is to synthetically replicate corporate  credit exposures with credit derivatives. This involves the  purchase of high quality low risk assets and the sale of credit  derivatives. The program is designed to purchase asset  positions that are already subject to review by management,  but may not be available under the same terms and conditions  in the cash bond market. AEGON holds financial derivatives for  trading purposes. Embedded derivatives that are not closely related to the host  contracts have been bifurcated and recorded at fair value in  the balance sheet. These bifurcated embedded derivatives are  embedded in various institutional products, modified  coinsurance and unit linked insurance contracts in the form of  guarantees for minimum benefits. As a result of movements in  financial markets and of anticipated maturities of unit linked  insurance contracts in 2010 the market value of the guarantees  embedded in the written insurance contracts decreased  Furthermore, synthetic Guaranteed Investment Contracts  (GICs), liquidity agreements and principal protection  agreements have been sold by AEGON to earn a fee. SHARPENING OUR FOCUS Derivative asset Derivative liability 2010 2009 2010 2009 Derivatives for general account Derivatives not designated in a hedge 4,702 3,614 4,383 4,375 Derivatives designated as fair value hedges 393 340 626 606 Derivatives designated as cash fl ow hedges 479 315 393 354 Net foreign investment hedges 148 159 168 138 5,722 4,428 5,570 5,473 Derivatives for account of policyholders Derivatives not designated in a hedge 529 489 401 243 529 489 401 243 TOTAL DERIVATIVES  1 6,251 4,917 5,971 5,716 Derivatives not designated in a hedge – general account Derivative asset Derivative liability 2010 2009 2010 2009 Derivatives held as an economic hedge 4,624 3,541 3,261 2,642 Bifurcated embedded derivatives 7 22 1,118 1,671 Other 71 51 4 62 TOTAL  4,702 3,614 4,383 4,375 USE OF DERIVATIVES 