Business overview  Overview of Variable Annuities Europe 82 Offshore bonds Regulation and supervision Competition Variable annuities The premiums paid are invested in the underlying funds as  selected by the client. Alternatively, clients may request  the appointment of a specialist fund manager to select the  underlying funds on an advisory or discretionary basis. The UK offshore bond market remains highly competitive. Aegon  has a 6% market share, placing it sixth. The top three providers  by market share are Axa Wealth, Standard Life, and Canada Life,  respectively.  The assets related to this product are segregated for the benefit  of policyholders in separate accounts of the insurance company.  These separate accounts are classified as investments for the  account of policyholders.  Offshore Wealth Management products allow a customer to  make regular withdrawals from their policy provided there is  sufficient value in the underlying fund. The death benefit is  typically 100.1% of the surrender value of the policy on the  death of the last life assured. Offshore Wealth Management  products do not have explicit guarantees. The surrender value  reflects the performance of the funds selected by the client and,  therefore, the final surrender value of the policy may be less  than the original investment. The account value of Offshore Wealth Management products  reflects the performance of the funds. The insurance provider  earns ongoing administration and expense charges on the policy.  Collected surrender charges are typically applied to recoup  deferred acquisition costs. Aegon Ireland is registered as a life insurance company in Ireland  under the European Communities (Life Assurance) Framework  Regulations 1994 (the 1994 Regulations), which implements the  Consolidated Life Directive in Ireland. Aegon Ireland is regulated  by the Central Bank of Ireland. As an Irish authorized life  insurance company, Aegon Ireland may undertake life insurance  business in any member state of the European Economic Area on  either a freedom of services (FOS) or freedom of establishment  (FOE) basis, subject to the notification requirements set out in  the 1994 Regulations. Aegon Ireland operates on an FOE basis in Germany (with  a branch office in Frankfurt) and on an FOS basis in the United  Kingdom and the Netherlands, selling life insurance products  in Class III (contracts linked to investment funds) and Class I  (life insurance and contracts to pay annuities on human life),  excluding contracts written in Class II (contracts of insurance  to provide a sum on marriage or on the birth of a child). Aegon  Ireland must comply with the general good provisions that apply  to insurers selling such policies in each jurisdiction. The Central Bank of Ireland has sole responsibility for the  prudential supervision and regulation of Aegon Ireland. As  a consequence, Aegon Ireland's entire business, state of  solvency, establishment and maintenance of technical reserves,  quality of corporate governance, risk management, and internal  control systems are all subject to monitoring and supervision  by the Central Bank of Ireland. Aegon is required to submit  annual returns to the Central Bank of Ireland and is subject to  annual review meetings and themed visits. The Central Bank of  Ireland has wide powers of intervention in all areas of Aegon  Ireland's business. From 2012 to 2013, the competitive environment for variable  annuities in Europe has experienced no significant change.  Ongoing difficult economic and financial conditions have limited  new product launches. In the United Kingdom, there are two  competitors, Axa and MetLife. MetLife is the market leader, with  a total variable annuity market solution covering both pensions  and onshore bonds. In Germany, several competitors offer variable annuity type  products, but variable annuities are generally not essential to  their overall offering. The main competitors are Canada Life, Axa,  and Baloise. Other providers include Allianz, Swiss Life, Generali,  and Friends Provident. In France, AXA and Allianz are the only other providers offering  variable annuities, with AXA leading the market.  Annual Report 2013