69 In February 2013, Aegon acquired Fidem Life, a life insurance  player in Ukraine selling traditional life insurance products.  In the CEE region, Aegon has substantial traditional life insurance  portfolios, mainly in Hungary, Turkey and Ukraine. The other  Aegon subsidiaries, including Hungary, focus on unit-linked  products, in addition to various accident and health riders. In 2013, Aegon Hungary Composite Insurance Company  incorporated a new subsidiary, Aegon Hungary Home Savings  and Loan Association. The new entity provides a savings product  combined with a preferential loan option which is subsidized by  the state during the savings period.  In terms of assets under management, Aegon’s private pension  funds in Poland, Slovakia and Romania, and voluntary pension  fund in Hungary, are among the largest 1  in their countries. In  terms of member numbers, Aegon has a significant market  presence 2  in Poland, Romania, and Hungary. As of December  2013, Aegon had a total of 1.6 million pension fund members in  Central & Eastern Europe. Since 2009, a series of legislative changes implemented in  Aegon’s regional country units has impacted this line of business  significantly. The most significant impact was in Hungary and  another significant impact is expected in Poland.  The Hungarian pension legislation changes enacted at the  end of 2010 had a significant impact on the private (formerly  mandatory) pension system. One of the most important  measures was that private pension members were required  to choose whether to remain enrolled in the private pension  fund (on condition of termination of entitlement to the state  pension for employment years after 2011) or opt out of private  pension funds, transferring accumulated savings to the state  held pension system. As a result, approximately 3% of members  decided to remain enrolled in the private pension system and  97% moved to the state pension system. Aegon Hungary has offered mortgage loans to retail customers  since 2006. Home mortgage loans provided in the past were  mainly Swiss franc denominated and provided by Aegon Hungary  Mortgage Finance Co., a subsidiary of Aegon Hungary Composite  Insurance Company. In the last four years, the mortgage lending  shifted toward lending in the Hungarian forint. Since 2010, the mortgage loans business has been affected by  several legislative changes enacted by the Hungarian Parliament,  each having the aim of reducing the financial burden on debtors  with foreign currency denominated loans, and arising as a result  of the economic downturn. One of the most significant one-time  measures was enacted in September 2011 to permit debtors to  redeem the outstanding loan amount at a fixed, below market  exchange rate that resulted in a substantial loss for the financial  industry. Under the currently effective rules debtors may fix the  exchange rate applied to their monthly instalments at a below- market exchange rate for a maximum period of five years. The  financial losses resulting from this program are borne partially by  the Hungarian State and partially by financial institutions.  Further legislative changes, enacted in Hungary at the end of  2011, required that all contributions deducted from the monthly  wages of members were transferred to the state driven pension  system (Pillar I). Members were able to transfer contributions  to the private (formerly mandatory) pension funds only on  a voluntary basis.  Following the above mentioned changes, on May 31, 2012,  the delegate general meeting agreed to terminate the Aegon  private pension fund without any legal successor in Hungary.  The liquidation process began on July 1, 2012, and was  completed in 2013. In Poland, in accordance with legislative changes enacted in  2011, the contribution level payable into the private pension  fund was reduced significantly. As of 2012, new members may  no longer be actively recruited into private pension funds by  pension management companies. Also, in accordance with the  legislative changes coming into force on January 31, 2014, the  Polish treasury bonds, treasury bills and other state backed  debt instruments, representing around 50% of the value of  the managed pension fund, are to be transferred back to the  Aegon’s pension business in Central & Eastern Europe  experienced considerable growth before the financial crisis of  2008, due mainly to the region’s strong economic growth, and  pension system reform in many of the countries in the region. In the formerly mandatory private pension market, Aegon was  active in Slovakia, Poland, and Romania in 2013, having exited  Hungary. In the voluntary pension market, Aegon was active  in Hungary and Turkey, having exited Slovakia and the Czech  Republic in 2013. Pensions Mortgage loans 1 Sources: Polish Financial Supervision Authority, www.knf.gov.pl; the Association of Pension Fund Management Companies, Slovakia, www.adss.sk; Authority for  Financial Supervision, http://asfro.ro/; The Central Bank of Hungary, https://felugyelet.mnb.hu. 2 Sources: Polish Financial Supervision Authority, www.knf.gov.pl; Authority for Financial Supervision, http://asfro.ro/; The Central Bank of Hungary, https:// felugyelet.mnb.hu.