Business overview  Results of operations – Worldwide 24 Impairment charges Other charges Production Capital management Impairments decreased 55% in 2012 compared to 2011 to  EUR 176 million and continue to be linked primarily to residential  mortgage-backed securities in the Americas. Other charges in 2012 amounted to EUR 162 million and  were primarily the result of a EUR 265 million charge in the  Netherlands related to the acceleration of product improvements  for unit-linked insurance policies and a BOLI wrap charge in the  United States (EUR 26 million). Providing most of the offset  against these charges were the book gain of EUR 100 million on  the sale of Aegon’s minority stake in Prisma Capital Partners and  the divestment of Aegon’s 50% stake in the joint venture with  Banca Cívica (EUR 35 million). The results of run-off businesses amounted to a gain of  EUR 2 million, with positive results from the institutional  spread-based business only partially offset by accelerated  amortization of the pre-paid cost of reinsurance asset related to  the divestment of the life reinsurance activities in 2011 due to  increased transfers of clients from Aegon to SCOR. Run-off businesses Income tax New life sales increased in 2012 compared to 2011 in the  Americas and the United Kingdom, partially offset by decreases  in the Netherlands and New Markets. Gross deposits increased  by 25%, driven by variable annuity, retail mutual fund, retirement  plan, and asset management deposits. New premium production  for accident and health insurance increased by 19% for the year,  mainly driven by travel and supplemental health insurance sales  in the Americas and growth in Central & Eastern Europe. Net income contained a tax charge of EUR 351 million in 2012  (including a tax charge of EUR 15 million related to profits of  joint ventures and associates), resulting in an effective tax rate  of 18%. Deviation from the nominal tax rate is largely the result  of tax exempt items in the United States and the Netherlands,  tax credits which primarily relate to low income housing and  renewable energy in the United States (EUR 69 million), benefits  from a tax rate reduction in the United Kingdom (EUR 70 million),  benefits from cross border intercompany reinsurance  transactions (EUR 38 million), and a benefit related to the  run-off of the company’s institutional spread-based activities in  Ireland (EUR 51 million). These benefits were partly offset by  charges for non-recognition and impairment of deferred tax  assets (EUR 56 million), mainly in the United Kingdom. Commissions and expenses in 2012 decreased by 8% compared  to 2011 to EUR 5,765 million, largely driven by lower operating  expenses. Operating expenses decreased 7% compared  to 2011 to EUR 3,177 million, mainly as a result of the  implementation of cost savings programs in the United Kingdom,  the Netherlands, and the Americas. At December 31, 2012, Aegon’s Insurance Group Directive (IGD)  ratio amounted to 228%, an increase from the level of 195%  at December 31, 2011. Measured on a local solvency basis, the  Risk Based Capital (RBC) ratio in the United States increased  to approximately 495%, driven mainly by strong net income  throughout the year and a capital management transaction in  third quarter, offset by dividends paid to the holding company.  The IGD ratio in the Netherlands increased to approximately  251%, driven mainly by a change in the yield curve to discount  liabilities as prescribed by the Dutch Central Bank, offset  somewhat during the year by interest rate movements. The Pillar  I ratio in the United Kingdom decreased to approximately 126%. Shareholders’ equity increased to EUR 23.5 billion, mainly as a  result of net income and an increase in the revaluation reserves.  The revaluation reserves increased EUR 2.6 billion during the  year to EUR 6.1 billion, mainly a reflection of lower interest rates  and credit spreads. Shareholders’ equity per common share,  excluding preference capital and revaluation reserves, amounted  to EUR 8.42 at December 31, 2012 (2011: EUR 8.19). Aegon’s core capital excluding revaluation reserves and excluding  remeasurement amounted to EUR 18.5 billion, equivalent to  76.7% of the company’s total capital base, at December 31,  2012 (2011: 73.5%). This is above the company’s capital base  ratio target of at least 75% by the end of 2012. During 2012, Aegon aimed to maintain excess capital at the  holding of at least EUR 750 million. At the end of the year,  excess capital in the holding amounted to EUR 2.0 billion, an  increase of EUR 0.8 billion compared to year-end 2011, as  dividends received from business units were only partly offset by  interest payments and operational expenses. Commissions and expenses Annual Report 2013