329 experienced portfolio managers, mutual fund managers and sales executives, is very much dependent on the competitiveness of the  compensation package for employees in the market in which it competes. As a part of the governmental response in Europe and, to a  certain extent, the United States to the financial crisis in 2008, there have been various legislative initiatives that have sought to give  guidance or regulate the structure of remuneration for personnel, in particular senior management, with a focus on performance- related remuneration and limiting severance payments. With differences in interpretation of these regulations by local regulators on  how the guidelines need to be applied, as well as to the question of whether they apply to insurance industries at all, these restrictions  create an uncertain playing field and may adversely affect Aegon’s ability to compete for qualified employees, as well as Aegon's ability  to exchange employees between regions. Aegon’s insurance subsidiaries cede premiums to other insurers under various agreements that cover individual risks, group risks or  defined blocks of business, on a co-insurance, yearly renewable term, excess or catastrophe excess basis. The purpose of these  reinsurance agreements is to spread the risk and minimize the effect of losses. The amount of each risk retained depends on an  evaluation of the specific risk, which is subject, in certain circumstances, to maximum limits based on the characteristics of coverage.  Under the terms of the reinsurance agreements, the reinsurer agrees to reimburse for the ceded amount in the event a covered claim is  paid. However, Aegon’s insurance subsidiaries remain liable to their policyholders for ceded insurance if any reinsurer fails to meet the  obligations assumed by it. A bankruptcy or insolvency or inability of Aegon’s reinsurance counterparties to satisfy its obligations may  have a materially adverse effect on Aegon’s financial position and results of operations. Refer to Schedule IV of this Annual Report for  a table showing life insurance in force amounts on a direct, assumed and ceded basis for 2011, 2012 and 2013. In accordance with industry practices, Aegon reinsures a portion of its life insurance exposure with unaffiliated insurance companies  under traditional indemnity reinsurance arrangements. In 2013, approximately 60% of Aegon's total direct and assumed (for which  Aegon acts as a reinsurer for others) life insurance in force was ceded to other insurers. The major reinsurers of Aegon USA and Aegon  Canada are SCOR SE (‘SCOR’), Munich Re, RGA and Swiss Re. The major reinsurers of Aegon UK are Swiss Re, Munich Re, Pacific Re and  XL Re. The non-life reinsurance for Aegon the Netherlands is diversified across several providers including Lloyds market syndicates.  The major reinsurers of Aegon Hungary for non- life are Swiss Re, Munich Re and Hannover Re and for life insurance Munich Re and  RGA. Aegon Spain´s major reinsurers are General Re, RGA, National Re and SCOR. Aegon China´s major reinsurers are Hannover Re,  Munich Re, China Re and Aegon India’s major reinsurer is RGA. As part of Aegon’s overall risk and capacity management strategy, Aegon purchases reinsurance for certain risks underwritten by  Aegon’s various business segments. Market conditions beyond Aegon’s control determine the availability and cost of the reinsurance  protection Aegon purchases. Accordingly, Aegon may be forced to incur additional expenses for reinsurance or may not be able to  obtain sufficient reinsurance on acceptable terms, which may adversely affect Aegon’s ability to write future business. In recent years, Aegon has made a number of acquisitions and divestitures around the world and it is possible that Aegon may make  further acquisitions and divestitures in the future. Growth by acquisition involves risks that may adversely affect Aegon’s operating  results and financial condition. These include: the potential diversion of financial and management resources from existing operations;  difficulties in assimilating the operations, technologies, products and personnel of the acquired company; significant delays in  completing the integration of acquired companies; the potential loss of key employees or customers of the acquired company; potential  losses from unanticipated litigation; and tax and accounting issues. In addition, expansion into new and emerging markets may involve  heightened political, legal and regulatory risks, such as discriminatory regulation, nationalization or expropriation of assets, price  controls and exchange controls. Aegon’s acquisitions may result in additional indebtedness, costs, contingent liabilities and impairment expenses related to goodwill  and other intangible assets. In addition, they may divert management´s attention and other resources. Divestitures of existing  operations may result in Aegon assuming or retaining certain contingent liabilities. All of these may adversely affect Aegon’s  businesses, results of operations and financial condition. Future acquisitions may also have a dilutive effect on the ownership and  voting percentages of existing shareholders. There can be no assurance that Aegon will successfully identify suitable acquisition  Aegon may have difficulty managing its expanding operations, and Aegon may not be successful in acquiring new businesses  or divesting existing operations. Reinsurance may not be available, affordable or adequate to protect Aegon against losses. Reinsurers to whom Aegon has ceded risk may fail to meet their obligations.