79 Distribution Overview of business lines Asset liability management Reinsurance ceded Competition Regulation and supervision for the life insurance business and of the premiums and sum  at risk for the health and general insurance business. The local  regulations for investments require the appropriate matching of  investments and technical provisions, and also establish different  levels of restrictions on the type of assets in which the insurance  company may invest. Aegon Spain distributes life insurance, general insurance, health  and pension products. It uses two main distribution channels,  Bancassurance, comprising 66% of the total, and its own  network of brokers and agents. Aegon Spain’s sales network  is focused on individual life and health insurance in urban and  rural areas.  Aegon Spain primarily serves retail customers, and offers life  insurance, general insurance, accident and health, and pension  products. The recent partnership with Banco Santander enabled  Aegon Spain to begin offering general insurance. The gross  premium written contribution in 2013 for each of Aegon Spain’s  business lines was 69% for life insurance, 20% for accident and  health insurance, and 11% for general insurance. The Spanish insurance market is highly competitive.  For Aegon Spain’s traditional life, unit-linked variable life and  pension products, the major competitors are retail bank-owned  insurance companies. The life market is dominated by Grupo  Caixa, with a 21% market share, and Santander, with a 12%  share, followed by Mapfre, with 10%. Aegon Spain’s market  share is 1.09%. Aegon Spain’s approach to asset liability management is,  respectively, to make projections of asset and liability cash flows,  calculate their present values using a market yield curve, and  compute the main parameters affecting these cash flows, such  as duration and convexity. The goal is to lock in the spread by  matching the duration of assets to the duration of liabilities. Aegon Spain has a ‘one Aegon’ reinsurance management policy,  meaning that both its joint ventures and own business are  treated as a whole, with the same economic conditions and  reinsurers panel, but with individual profit shares without losses  carried forward by each entity belonging to Aegon Spain. The  main contract for mortality and morbidity provides proportional  reinsurance protection for both its individual risk and group risk  policies. With this approach, Aegon Spain seeks to optimize the  cost of reinsurance coverage, sharing the profits and not the  losses, while achieving prudential diversification of its insurance  risk by limiting the maximum possible losses on risks that exceed  retention levels. Maximum retention levels vary by product and  by nature of the risk being reinsured; generally, however, the  retention limit is between EUR 30,000 and EUR 60,000 per  life insured. Aegon Spain remains contingently liable for the  amount ceded should the reinsurance company fail to meet  its obligations. Aegon Spain generally uses only reinsurance  companies that have a Standard & Poor credit rating of “A” or  higher. Aegon’s Group Reinsurance Use Committee is involved  in the pre-approval of reinsurers, and the selection of reinsurers  where a reinsurer has a rating of below “A”. In addition, to reduce  its exposure to defaults, Aegon Spain has several reinsurers on  its panel and regularly monitors the creditworthiness of each.  Further protection is taken out through funds that are withheld  for investment by the ceding company where appropriate. For Aegon Spain’s health and general insurance products, the  main competitors are foreign and local companies. Mapfre leads  the non-life insurance market with a 19% market share, followed  by Axa and Generalli, both with an 8% share. The non-life market  is more fragmented than the life market. Aegon Spain’s multi- risk business line is responsible for non-life and has a market  share of 0.88%. Direccion General de Seguros (DGS) is the regulatory authority  for the Spanish insurance industry. Insurance companies  are required to report to DGS on a quarterly basis. Spanish  regulations incorporate all requirements of the relevant  European Union directives. The local regulations for solvency  margin are based, respectively, on percentages of the reserves 