Notes to the consolidated financial statements of Aegon N.V.  Note 24 228 Of these derivatives EUR 540 million net asset is current (2012: EUR 606 million net asset). In 2012, Aegon the Netherlands entered into a derivative to partially hedge its longevity risk. The derivative, with a notional amount  of EUR 12 billion, becomes in the money if - in 2032 - realized mortality rates are more than 7.5% lower than pre-defined mortality  tables. To further protect the longevity position of Aegon the Netherlands and combining this with protection for catastrophe mortality  in the US, Aegon bought an additional longevity index derivative in 2013. This derivative will pay out in twenty-two years if some  combination of higher than expected mortality rates in the United States and/or lower than expected mortality rates in the Netherlands  persists over the next twenty years and, at that time, is expected to continue to do so. The derivatives are measured at fair value  through profit or loss in accordance with IAS 39. The value of the longevity derivatives are calculated using an internal model as  there is no active market for this type of derivatives. For more details refer to the paragraph on derivatives included in note 3 and  the paragraph on underwriting risk included in note 4. The fair value of derivatives on both the asset and liability side of the consolidated statement of financial position decreased during  2013. This decrease is mainly caused by increases in market interest rates and other market developments. 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, liability or future reinvestment risk. In  all cases, these are in accordance with internal risk guidelines and are closely monitored for continuing compliance. Embedded derivatives that are not closely related to the host contracts have been bifurcated and recorded at fair value in  the statement of financial position. 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. Please refer to note 48 for more  disclosures about these guarantees. Aegon has entered into free-standing credit derivative transactions (Single Tranche Synthetic CDOs and Single Name Credit Default  Swaps - CDSs). The positions outstanding at the end of the year were: CDOs and CDSs Use of derivatives Derivatives not designated in a hedge Derivative asset Derivative liability Derivatives not designated in a hedge – general account 2013 2012 2013 2012 Derivatives held as an economic hedge 12,186 18,892 9,614 14,565 Bifurcated embedded derivatives 92 13 1,464 2,305 Other 134 133 14 97 Total 12,413 19,038 11,092 16,967 2013 2012 CDOs and CDSs Notional Fair value Notional Fair value Synthetic CDOs 20 20 58 19 CDSs 2,876 50 2,174 12 Total 2,896 70 2,232 31 Annual Report 2013