Aegon manages credit risk exposure by individual counterparty, sector and asset class, including cash positions. Normally, Aegon  mitigates credit risk in derivative contracts by entering into credit support agreement, where practical, and in ISDA master netting  agreements for most of Aegon’s legal entities to facilitate Aegon’s right to offset credit risk exposure. Main counterparties to  these transactions are investment banks which are typically rated A or higher. The credit support agreement will normally dictate  the threshold over which collateral needs to be pledged by Aegon or its counterparty. Transactions requiring Aegon or its counterparty  to post collateral are typically the result of derivative trades, comprised mostly of interest rate swaps, currency swaps, and credit  swaps. Collateral received is mainly cash (USD and EUR). The credit support agreements that outline the acceptable collateral require  high quality instruments to be posted. In 2013 and 2012, there was no default with any derivatives counterparty. The credit risk  associated with financial assets subject to a master netting agreement is eliminated only to the extent that financial liabilities due to  the same counterparty will be settled after the assets are realized. Aegon may also mitigate credit risk in reinsurance contracts by including down-grade clauses that allow the recapture of business,  retaining ownership of assets required to support liabilities ceded or by requiring the reinsurer to hold assets in trust. For the resulting  net credit risk exposure, Aegon employs deterministic and stochastic credit risk modelling in order to assess the Group’s credit risk  profile, associated earnings and capital implications due to various credit loss scenarios. Aegon operates a Credit Name Limit Policy under which limits are placed on the aggregate exposure that it has to any one counterparty.  Limits are placed on the exposure at both group level and individual country units. The limits also vary by a rating system, which is  a composite of the main rating agencies (S&P, Moody’s and Fitch) and Aegon’s internal rating of the counterparty. If an exposure  exceeds the stated limit, then the exposure must be reduced to the limit for the country unit and rating category as soon as possible.  Exceptions to these limits can only be made after explicit approval from Aegon’s Group Risk and Capital Committee (GRCC). The policy  is reviewed regularly. At December 31, 2013, there was one violation of the Credit Name Limit Policy at Group level, which received an exemption from  Aegon’s GRCC. This exposure is an reinsurance exposure. At December 31, 2012, there were four violations of the Credit Name Limit  Policy at Group level. Three of these exposures have been reduced in 2013. At December 31, 2013, Aegon’s largest corporate credit exposures are to Rabobank, ING, Citigroup, General Electric and Berkshire  Hathaway. Aegon had large investments in sovereign backed assets, the largest being in USA, the Netherlands, Germany, UK and  Austria. Highly rated sovereign assets (AAA rated) and domestically issued and owned in local currency sovereign exposures are  excluded from the Credit Name Limit Policy. Aegon Group level long-term counterparty exposure limits are as follows: Group Limit Amounts in EUR million 2013 2012 AAA 900 900 AA 900 900 A 675 600 BBB 450 400 BB 250 250 B 125 125 CCC or lower 50 50 Annual Report 2013 Credit risk management Notes to the consolidated financial statements of Aegon N.V.  Note 4 180