Net income declined to EUR 254 million as higher underlying earnings, more favorable results on fair value items and lower impairments were more than offset by lower realized gains and a one-time charge in the Netherlands of EUR 265 million before tax included in Other charges.Fair value items The results from fair value items amounted to EUR 101 million. Positive results in the Netherlands and the holding were partly offset by negative fair value results in the Americas and New Markets. Realized gains on investments In the second quarter, realized gains on investments amounted to EUR 85 million and were mainly the result of normal trading in the investment portfolio. Impairment charges Impairments amounted to EUR 42 million which were primarily linked to residential mortgage-backed securities in the United States. Other charges Other charges amounted to a loss of EUR 254 million. On May 31, 2012 AEGON announced the acceleration of product improvements for unit-linked insurance policies in the Netherlands and the related one-time charge of EUR 265 million. Run-off businesses The results of run-off businesses amounted to EUR 6 million. The amortization of the prepaid cost of reinsurance asset related to the divestment of the life reinsurance activities was offset by improved results from the institutional spread-based business. Income tax Net income contained a tax charge of EUR 85 million in the second quarter, translating into an effective tax rate of 25%. Return on equity Higher average shareholders' equity excluding revaluation reserves, compared with the second quarter of 2011, resulted in a return on equity of 6.8% for the second quarter 2012. Return on equity for AEGON's ongoing businesses, excluding the run-off businesses, amounted to 7.7% over the same period.