Securities and Exchange Commission
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d/16 of
the Securities Exchange Act of 1934
May 2012
AEGON N.V.
AEGONplein 50
2591 TV THE HAGUE
The Netherlands
AEGONs press release, dated May 10, 2012, is included as appendix and incorporated herein by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AEGON N.V. | ||||||
(Registrant) | ||||||
Date: May 10, 2012 | By | /s/ E. Lagendijk | ||||
E. Lagendijk | ||||||
Executive Vice President and | ||||||
General Counsel |
AEGON delivers growth in sales and earnings; maintains strong capital position
| Business growth, cost reductions and favorable financial markets drive higher earnings |
| Underlying earnings increase to EUR 425 million, including additional adverse mortality experience of EUR 12 million compared to Q1 2011 |
| Impairments decline to lowest level in four years to EUR 41 million |
| Net income increases to EUR 521 million driven by favorable fair value items results and tax benefits |
| Return on equity of 6.9%, or 7.8% excluding run-off businesses |
| Target of doubling fee-based earnings achieved: 35% of first quarter underlying earnings from fee businesses |
| Strong increase in total sales driven by pension and asset management deposits |
| US pension sales and new asset management mandates drive 50% increase in deposits to EUR 11 billion |
| Accident and health sales increase 23% to EUR 195 million, driven by growth in the Americas |
| New life sales decline 11% to EUR 445 million; increase in US offset by lower sales in UK and Netherlands |
| MCVNB increases to EUR 125 million; product repricing as a result of low interest rates |
| Continued strong capital position and cash flows |
| IGDa) solvency ratio increases to 201%; IGD surplus capital of EUR 7.1 billion |
| Capital base ratio of 74.2%; on track to exceed minimum of 75% by the end of 2012 |
| Operational free cash flow increases to EUR 805 million, including EUR 400 million of exceptional items |
Statement of Alex Wynaendts, CEO
Following a year of considerable transformation, AEGONs businesses made a strong start in the first quarter of 2012 with solid increases in sales and earnings. Our successful efforts to reduce costs across our organization have created greater focus while also contributing to higher earnings. Our emphasis on serving the growing demand for retirement planning solutions led to the substantial increase in pension deposits in the United States and our third-party asset management business succeeded in capturing a significant inflow of new business. In keeping with one of our key strategic objectives, we delivered early on our target to generate a greater proportion of earnings from fee-based versus spread-based business.
We were pleased with the low level of impairments during the quarter, their lowest in four years. At the same time, it continues to be our priority to maintain AEGONs strong capital position in this period of continued economic uncertainty.
AEGONs first quarter results confirm the resilience of our franchise and that the actions being pursued by management are the right ones. It is for this reason that we look forward to resuming a dividend payment, which will be decided during our upcoming Annual General Meeting of Shareholders.
KEY PERFORMANCE INDICATORS
amounts in EUR millions b) |
Notes | Q1 2012 | Q4 2011 | % | Q1 2011 | % | ||||||||||||||||||
Underlying earnings before tax |
1 | 425 | 346 | 23 | 414 | 3 | ||||||||||||||||||
Net income |
2 | 521 | 81 | | 327 | 59 | ||||||||||||||||||
Sales |
3 | 1,758 | 1,409 | 25 | 1,411 | 25 | ||||||||||||||||||
Market consistent value of new business |
4 | 125 | 71 | 76 | 121 | 3 | ||||||||||||||||||
Return on equity |
5 | 6.9 | % | 5.2 | % | 33 | 7.7 | % | (10 | ) |
For notes see page 20.
Page 1 of 22
STRATEGIC HIGHLIGHTS
| AEGON details UK pensions reform proposition |
| AEGON expands strategic partnership with Liberbank in Spain |
| AEGON to delist its common shares from the London Stock Exchange |
* | Main economic assumptions embedded in targets: annual gross equity market return of 9%, 10 year US interest rate of 4.75% in 2016 and EUR/USD rate of 1.35. |
Page 2 of 22
Page 3 of 22
FINANCIAL OVERVIEW c)
EUR millions |
Notes | Q1 2012 | Q4 2011 | % | Q1 2011 | % | ||||||||||||||||||
Underlying earnings before tax |
||||||||||||||||||||||||
Americas |
292 | 316 | (8 | ) | 336 | (13 | ) | |||||||||||||||||
The Netherlands |
79 | 75 | 5 | 81 | (2 | ) | ||||||||||||||||||
United Kingdom |
29 | (26 | ) | | 12 | 142 | ||||||||||||||||||
New markets |
88 | 65 | 35 | 68 | 29 | |||||||||||||||||||
Holding and other |
(63 | ) | (84 | ) | 25 | (83 | ) | 24 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Underlying earnings before tax |
425 | 346 | 23 | 414 | 3 | |||||||||||||||||||
Fair value items |
156 | (20 | ) | | (85 | ) | | |||||||||||||||||
Realized gains / (losses) on investments |
45 | 49 | (8 | ) | 91 | (51 | ) | |||||||||||||||||
Impairment charges |
(41 | ) | (94 | ) | 56 | (62 | ) | 34 | ||||||||||||||||
Other income / (charges) |
(17 | ) | (194 | ) | 91 | (3 | ) | | ||||||||||||||||
Run-off businesses |
(2 | ) | 1 | | 22 | | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Income before tax |
566 | 88 | | 377 | 50 | |||||||||||||||||||
Income tax |
(45 | ) | (7 | ) | | (50 | ) | 10 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Net income |
521 | 81 | | 327 | 59 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income / (loss) attributable to: |
||||||||||||||||||||||||
Equity holders of AEGON N.V. |
521 | 79 | | 327 | 59 | |||||||||||||||||||
Non-controlling interests |
| 2 | | | | |||||||||||||||||||
Net underlying earnings |
328 | 253 | 30 | 333 | (2 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commissions and expenses |
1,399 | 1,684 | (17 | ) | 1,513 | (8 | ) | |||||||||||||||||
of which operating expenses |
11 | 781 | 872 | (10 | ) | 837 | (7 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
New life sales |
||||||||||||||||||||||||
Life single premiums |
1,160 | 1,876 | (38 | ) | 1,726 | (33 | ) | |||||||||||||||||
Life recurring premiums annualized |
329 | 311 | 6 | 328 | | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total recurring plus 1/10 single |
445 | 498 | (11 | ) | 501 | (11 | ) | |||||||||||||||||
New life sales |
||||||||||||||||||||||||
Americas |
12 | 120 | 109 | 10 | 105 | 14 | ||||||||||||||||||
The Netherlands |
32 | 117 | (73 | ) | 65 | (51 | ) | |||||||||||||||||
United Kingdom |
213 | 189 | 13 | 247 | (14 | ) | ||||||||||||||||||
New markets |
12 | 80 | 83 | (4 | ) | 84 | (5 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total recurring plus 1/10 single |
445 | 498 | (11 | ) | 501 | (11 | ) | |||||||||||||||||
New premium production accident and health insurance |
195 | 188 | 4 | 159 | 23 | |||||||||||||||||||
New premium production general insurance |
14 | 13 | 8 | 13 | 8 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Gross deposits (on and off balance) |
||||||||||||||||||||||||
Americas |
12 | 7,392 | 5,009 | 48 | 5,629 | 31 | ||||||||||||||||||
The Netherlands |
560 | 560 | | 462 | 21 | |||||||||||||||||||
United Kingdom |
8 | 9 | (11 | ) | 19 | (58 | ) | |||||||||||||||||
New markets |
12 | 3,083 | 1,522 | 103 | 1,267 | 143 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total gross deposits |
11,043 | 7,100 | 56 | 7,377 | 50 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net deposits (on and off balance) |
||||||||||||||||||||||||
Americas |
12 | 1,061 | (886 | ) | | (233 | ) | | ||||||||||||||||
The Netherlands |
(185 | ) | (160 | ) | (16 | ) | (115 | ) | (61 | ) | ||||||||||||||
United Kingdom |
(1 | ) | 1 | | 2 | | ||||||||||||||||||
New markets |
12 | 1,364 | 108 | | (1,719 | ) | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total net deposits excluding run-off businesses |
2,239 | (937 | ) | | (2,065 | ) | | |||||||||||||||||
Run-off businesses |
(1,160 | ) | (611 | ) | (90 | ) | (880 | ) | (32 | ) | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total net deposits |
1,079 | (1,548 | ) | | (2,945 | ) | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Page 4 of 22
OPERATIONAL HIGHLIGHTS
Page 5 of 22
REVENUE-GENERATING INVESTMENTS
Mar. 31, 2012 |
Dec. 31, 2011 |
% | ||||||||||
Revenue-generating investments (total) |
436,753 | 423,518 | 3 | |||||||||
|
|
|
|
|
|
|||||||
Investments general account |
140,770 | 144,079 | (2 | ) | ||||||||
Investments for account of policyholders |
149,501 | 142,529 | 5 | |||||||||
Off balance sheet investments third parties |
146,482 | 136,910 | 7 |
Page 6 of 22
Page 7 of 22
APPENDIX I Americas The Netherlands United Kingdom New Markets
FINANCIAL OVERVIEW, Q1 2012 GEOGRAPHICALLY c)
EUR millions | Americas | The Netherlands |
United Kingdom |
New Markets |
Holding, other activities & eliminations |
Total | ||||||||||||||||||
Underlying earnings before tax by line of business |
||||||||||||||||||||||||
Life |
102 | 56 | 17 | 38 | | 213 | ||||||||||||||||||
Individual savings and retirement products |
126 | | | (4 | ) | | 122 | |||||||||||||||||
Pensions |
62 | 21 | 13 | 1 | | 97 | ||||||||||||||||||
Non-life |
| (5 | ) | | 12 | 1 | 8 | |||||||||||||||||
Distribution |
| 7 | (1 | ) | | | 6 | |||||||||||||||||
Asset Management |
| | | 29 | | 29 | ||||||||||||||||||
Other |
| | | | (64 | ) | (64 | ) | ||||||||||||||||
Share in underlying earnings before tax of associates |
2 | | | 12 | | 14 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Underlying earnings before tax |
292 | 79 | 29 | 88 | (63 | ) | 425 | |||||||||||||||||
Fair value items |
64 | 42 | (2 | ) | 7 | 45 | 156 | |||||||||||||||||
Realized gains / (losses) on investments |
9 | 34 | | 2 | | 45 | ||||||||||||||||||
Impairment charges |
(30 | ) | (3 | ) | | (4 | ) | (4 | ) | (41 | ) | |||||||||||||
Other income / (charges) |
(1 | ) | (3 | ) | 6 | (18 | ) | (1 | ) | (17 | ) | |||||||||||||
Run-off businesses |
(2 | ) | | | | | (2 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income before tax |
332 | 149 | 33 | 75 | (23 | ) | 566 | |||||||||||||||||
Income tax |
(53 | ) | (8 | ) | 13 | (27 | ) | 30 | (45 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
279 | 141 | 46 | 48 | 7 | 521 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net underlying earnings |
208 | 62 | 48 | 59 | (49 | ) | 328 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
EMPLOYEE NUMBERS
Mar. 31, 2012 |
Dec. 31, 2011 |
|||||||
Employees excluding agents |
22,132 | 22,249 | ||||||
Agents |
2,936 | 3,039 | ||||||
|
|
|
|
|||||
Total number of employees excluding Associates |
25,068 | 25,288 | ||||||
AEGONs share of employees (including agents) in Associates |
2,908 | 3,982 | ||||||
|
|
|
|
|||||
Total |
27,976 | 29,270 | ||||||
|
|
|
|
Page 8 of 22
AMERICAS
| Underlying earnings before tax amount to USD 383 million, impacted by adverse mortality experience |
| Net income increases to USD 366 million, driven by positive fair value items and lower impairments |
| Strong sales of life insurance and accident & health at USD 157 million and USD 231 million respectively |
| Gross deposits of USD 9.7 billion up 26% driven by continued strong pension deposits |
Page 9 of 22
REVENUE-GENERATING INVESTMENTS
Mar. 31, 2012 |
Dec. 31, 2011 |
% | ||||||||||
Revenue-generating investments (total) |
326,661 | 315,791 | 3 | |||||||||
|
|
|
|
|
|
|||||||
Investments general account |
114,117 | 116,283 | (2 | ) | ||||||||
Investments for account of policyholders |
86,279 | 80,137 | 8 | |||||||||
Off balance sheet investments third parties |
126,265 | 119,371 | 6 |
Page 10 of 22
AMERICAS c)
USD millions |
Notes | Q1 2012 | Q4 2011 | % | Q1 2011 | % | ||||||||||||||||||
Underlying earnings before tax by line of business |
||||||||||||||||||||||||
Life and protection |
128 | 154 | (17 | ) | 180 | (29 | ) | |||||||||||||||||
Fixed annuities |
62 | 58 | 7 | 90 | (31 | ) | ||||||||||||||||||
Variable annuities |
97 | 121 | (20 | ) | 93 | 4 | ||||||||||||||||||
Retail mutual funds |
4 | 5 | (20 | ) | 6 | (33 | ) | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Individual savings and retirement products |
163 | 184 | (11 | ) | 189 | (14 | ) | |||||||||||||||||
Employer solutions & pensions |
81 | 83 | (2 | ) | 81 | | ||||||||||||||||||
Canada |
8 | 4 | 100 | 11 | (27 | ) | ||||||||||||||||||
Latin America |
3 | 1 | 200 | (2 | ) | | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Underlying earnings before tax |
383 | 426 | (10 | ) | 459 | (17 | ) | |||||||||||||||||
Fair value items |
83 | (189 | ) | | (17 | ) | | |||||||||||||||||
Realized gains / (losses) on investments |
12 | 7 | 71 | 34 | (65 | ) | ||||||||||||||||||
Impairment charges |
(39 | ) | (87 | ) | 55 | (80 | ) | 51 | ||||||||||||||||
Other income / (charges) |
(1 | ) | (50 | ) | 98 | | | |||||||||||||||||
Run-off businesses |
(3 | ) | 1 | | 30 | | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Income before tax |
435 | 108 | | 426 | 2 | |||||||||||||||||||
Income tax |
(69 | ) | 13 | | (76 | ) | 9 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Net income |
366 | 121 | | 350 | 5 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income / (loss) attributable to: |
||||||||||||||||||||||||
Equity holders of AEGON N.V. |
366 | 121 | | 350 | 5 | |||||||||||||||||||
Net underlying earnings |
273 | 301 | (9 | ) | 337 | (19 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commissions and expenses |
1,055 | 1,347 | (22 | ) | 1,186 | (11 | ) | |||||||||||||||||
of which operating expenses |
478 | 481 | (1 | ) | 481 | (1 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
New life sales |
12 | |||||||||||||||||||||||
Life single premiums |
65 | 43 | 51 | 100 | (35 | ) | ||||||||||||||||||
Life recurring premiums annualized |
150 | 144 | 4 | 133 | 13 | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total recurring plus 1/10 single |
157 | 148 | 6 | 143 | 10 | |||||||||||||||||||
Life & protection |
124 | 116 | 7 | 110 | 13 | |||||||||||||||||||
Employer solutions & pensions |
9 | 5 | 80 | 6 | 50 | |||||||||||||||||||
Canada |
14 | 15 | (7 | ) | 17 | (18 | ) | |||||||||||||||||
Latin America |
10 | 12 | (17 | ) | 10 | | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total recurring plus 1/10 single |
157 | 148 | 6 | 143 | 10 | |||||||||||||||||||
New premium production accident and health insurance |
231 | 233 | (1 | ) | 189 | 22 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Gross deposits (on and off balance) by line of business |
12 | |||||||||||||||||||||||
Life & protection |
3 | 4 | (25 | ) | 3 | | ||||||||||||||||||
Fixed annuities |
91 | 72 | 26 | 83 | 10 | |||||||||||||||||||
Variable annuities |
1,214 | 1,396 | (13 | ) | 1,179 | 3 | ||||||||||||||||||
Retail mutual funds |
754 | 627 | 20 | 775 | (3 | ) | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Individual savings & retirement products |
2,059 | 2,095 | (2 | ) | 2,037 | 1 | ||||||||||||||||||
Employer solutions & pensions |
7,544 | 4,517 | 67 | 5,554 | 36 | |||||||||||||||||||
Canada |
74 | 82 | (10 | ) | 97 | (24 | ) | |||||||||||||||||
Latin America |
4 | 4 | | | | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total gross deposits |
9,684 | 6,702 | 44 | 7,691 | 26 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net deposits (on and off balance) by line of business |
12 | |||||||||||||||||||||||
Life & protection |
(10 | ) | (9 | ) | (11 | ) | (14 | ) | 29 | |||||||||||||||
Fixed annuities |
(628 | ) | (752 | ) | 16 | (801 | ) | 22 | ||||||||||||||||
Variable annuities |
363 | 658 | (45 | ) | 220 | 65 | ||||||||||||||||||
Retail mutual funds |
(31 | ) | (191 | ) | 84 | (50 | ) | 38 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Individual savings & retirement products |
(296 | ) | (285 | ) | (4 | ) | (631 | ) | 53 | |||||||||||||||
Employer solutions & pensions |
1,797 | (950 | ) | | 485 | | ||||||||||||||||||
Canada |
(105 | ) | (37 | ) | (184 | ) | (158 | ) | 34 | |||||||||||||||
Latin America |
4 | 4 | | | | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total net deposits excluding run-off businesses |
1,390 | (1,277 | ) | | (318 | ) | | |||||||||||||||||
Run-off businesses |
(1,519 | ) | (812 | ) | (87 | ) | (1,202 | ) | (26 | ) | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total net deposits |
(129 | ) | (2,089 | ) | 94 | (1,520 | ) | 92 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Page 11 of 22
THE NETHERLANDS
| Underlying earnings before tax of EUR 79 million, including a loss of EUR 5 million in Non-life |
| Net income increases to EUR 141 million |
| New life sales decrease to EUR 32 million as result of lower sales in Life and Pensions |
Page 12 of 22
THE NETHERLANDS
EUR millions |
Notes | Q1 2012 | Q4 2011 | % | Q1 2011 | % | ||||||||||||||||
Underlying earnings before tax by line of business |
||||||||||||||||||||||
Life and Savings |
56 | 40 | 40 | 43 | 30 | |||||||||||||||||
Pensions |
21 | 36 | (42 | ) | 22 | (5 | ) | |||||||||||||||
Non-life |
(5 | ) | 2 | | 5 | | ||||||||||||||||
Distribution |
7 | | | 11 | (36 | ) | ||||||||||||||||
Share in underlying earnings before tax of associates |
| (3 | ) | | | | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
Underlying earnings before tax |
79 | 75 | 5 | 81 | (2 | ) | ||||||||||||||||
Fair value items |
42 | 189 | (78 | ) | (60 | ) | | |||||||||||||||
Realized gains / (losses) on investments |
34 | 33 | 3 | 35 | (3 | ) | ||||||||||||||||
Impairment charges |
(3 | ) | (5 | ) | 40 | (2 | ) | (50 | ) | |||||||||||||
Other income / (charges) |
(3 | ) | (84 | ) | 96 | (8 | ) | 63 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
Income before tax |
149 | 208 | (28 | ) | 46 | | ||||||||||||||||
Income tax |
(8 | ) | (60 | ) | 87 | (7 | ) | (14 | ) | |||||||||||||
|
|
|
|
|
|
|||||||||||||||||
Net income |
141 | 148 | (5 | ) | 39 | | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income / (loss) attributable to: |
||||||||||||||||||||||
Equity holders of AEGON N.V. |
141 | 148 | (5 | ) | 39 | | ||||||||||||||||
Net underlying earnings |
62 | 50 | 24 | 66 | (6 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commissions and expenses |
270 | 261 | 3 | 272 | (1 | ) | ||||||||||||||||
of which operating expenses |
187 | 191 | (2 | ) | 189 | (1 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
New life sales |
||||||||||||||||||||||
Life single premiums |
245 | 856 | (71 | ) | 457 | (46 | ) | |||||||||||||||
Life recurring premiums annualized |
7 | 31 | (77 | ) | 19 | (63 | ) | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
Total recurring plus 1/10 single |
32 | 117 | (73 | ) | 65 | (51 | ) | |||||||||||||||
Life and Savings |
18 | 13 | 38 | 26 | (31 | ) | ||||||||||||||||
Pensions |
14 | 104 | (87 | ) | 39 | (64 | ) | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
Total recurring plus 1/10 single |
32 | 117 | (73 | ) | 65 | (51 | ) | |||||||||||||||
New premium production accident and health insurance |
9 | 7 | 29 | 10 | (10 | ) | ||||||||||||||||
New premium production general insurance |
9 | 6 | 50 | 8 | 13 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross deposits (on and off balance) by line of business |
||||||||||||||||||||||
Life and Savings |
560 | 560 | | 382 | 47 | |||||||||||||||||
Pensions |
| | | 80 | | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
Total gross deposits |
560 | 560 | | 462 | 21 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net deposits (on and off balance) by line of business |
||||||||||||||||||||||
Life and Savings |
(185 | ) | (160 | ) | (16 | ) | (142 | ) | (30 | ) | ||||||||||||
Pensions |
| | | 27 | | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
Total net deposits |
(185 | ) | (160 | ) | (16 | ) | (115 | ) | (61 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
REVENUE-GENERATING INVESTMENTS
Mar. 31, 2012 |
Dec. 31, 2011 |
% | ||||||||||
Revenue-generating investments (total) |
64,283 | 62,242 | 3 | |||||||||
|
|
|
|
|||||||||
Investments general account |
39,572 | 39,019 | 1 | |||||||||
Investments for account of policyholders |
24,711 | 23,223 | 6 | |||||||||
|
|
|
|
|
|
Page 13 of 22
UNITED KINGDOM
| Underlying earnings before tax increase to GBP 25 million as a result of lower expenses |
| Net income amounts to GBP 39 million |
| New life sales decrease to GBP 178 million due to anticipated lower pension sales |
Page 14 of 22
UNITED KINGDOM
GBP millions |
Notes | Q1 2012 | Q4 2011 | % | Q1 2011 | % | ||||||||||||||||||
Underlying earnings before tax by line of business |
||||||||||||||||||||||||
Life |
15 | 30 | (50 | ) | 21 | (29 | ) | |||||||||||||||||
Pensions |
11 | (50 | ) | | (9 | ) | | |||||||||||||||||
Distribution |
(1 | ) | (2 | ) | 50 | (2 | ) | 50 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Underlying earnings before tax |
25 | (22 | ) | | 10 | 150 | ||||||||||||||||||
Fair value items |
(2 | ) | 3 | | (1 | ) | (100 | ) | ||||||||||||||||
Realized gains / (losses) on investments |
| 6 | | 25 | | |||||||||||||||||||
Impairment charges |
| (1 | ) | | | | ||||||||||||||||||
Other income / (charges) |
7 | 5 | (49 | ) | | (5 | ) | | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Income before tax |
28 | (63 | ) | | 29 | (3 | ) | |||||||||||||||||
Income tax attributable to policyholder return |
(5 | ) | (4 | ) | (25 | ) | (1 | ) | | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Income before income tax on shareholders return |
23 | (67 | ) | | 28 | (18 | ) | |||||||||||||||||
Income tax on shareholders return |
16 | (9 | ) | | 18 | (11 | ) | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Net income |
39 | (76 | ) | | 46 | (15 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income / (loss) attributable to: |
||||||||||||||||||||||||
Equity holders of AEGON N.V. |
39 | (76 | ) | | 46 | (15 | ) | |||||||||||||||||
Net underlying earnings |
40 | (40 | ) | | 33 | 21 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commissions and expenses |
142 | 184 | (23 | ) | 172 | (17 | ) | |||||||||||||||||
62 | 98 | (37 | ) | 98 | (37 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
New life sales |
8 | |||||||||||||||||||||||
Life single premiums |
600 | 648 | (7 | ) | 841 | (29 | ) | |||||||||||||||||
Life recurring premiums annualized |
118 | 96 | 23 | 127 | (7 | ) | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total recurring plus 1/10 single |
178 | 161 | 11 | 211 | (16 | ) | ||||||||||||||||||
Life |
17 | 17 | | 16 | 6 | |||||||||||||||||||
Pensions |
161 | 144 | 12 | 195 | (17 | ) | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total recurring plus 1/10 single |
178 | 161 | 11 | 211 | (16 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Gross deposits (on and off balance) by line of business |
||||||||||||||||||||||||
Variable annuities |
7 | 8 | (13 | ) | 17 | (59 | ) | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total gross deposits |
7 | 8 | (13 | ) | 17 | (59 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net deposits (on and off balance) by line of business |
||||||||||||||||||||||||
Variable annuities |
(1 | ) | 1 | | 2 | | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total net deposits |
(1 | ) | 1 | | 2 | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
REVENUE-GENERATING INVESTMENTS
Mar. 31, 2012 |
Dec. 31, 2011 |
% | ||||||||||
Revenue-generating investments (total) |
52,761 | 51,052 | 3 | |||||||||
|
|
|
|
|
|
|||||||
Investments general account |
8,298 | 8,313 | | |||||||||
Investments for account of policyholders |
44,463 | 42,739 | 4 |
Page 15 of 22
NEW MARKETS
| Underlying earnings before tax increase to EUR 88 million driven by asset management and Asia |
| Net income amounts to EUR 48 million, including EUR 17 million charge for Hungarian bank tax |
| New life sales decline 5% to EUR 80 million, the result of lower sales in Asia |
| Strong deposits of EUR 3.1 billion driven by both retail and institutional inflows for asset management |
Page 16 of 22
REVENUE-GENERATING INVESTMENTS
Mar. 31, 2012 |
Dec. 31, 2011 |
% | ||||||||||
Revenue-generating investments (total) |
63,288 | 56,156 | 13 | |||||||||
|
|
|
|
|
|
|||||||
Investments general account |
4,957 | 4,782 | 4 | |||||||||
Investments for account of policyholders |
6,663 | 6,415 | 4 | |||||||||
Off balance sheet investments third parties |
51,668 | 44,959 | 15 |
Page 17 of 22
NEW MARKETS c)
EUR millions |
Notes | Q1 2012 | Q4 2011 | % | Q1 2011 | % | ||||||||||||||||||
Underlying earnings before tax |
||||||||||||||||||||||||
Central Eastern Europe |
23 | 26 | (12 | ) | 26 | (12 | ) | |||||||||||||||||
Asia |
9 | 1 | | | | |||||||||||||||||||
Spain & France |
25 | 24 | 4 | 23 | 9 | |||||||||||||||||||
Variable Annuities Europe |
2 | 1 | 100 | 5 | (60 | ) | ||||||||||||||||||
AEGON Asset Management |
29 | 13 | 123 | 14 | 107 | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Underlying earnings before tax |
88 | 65 | 35 | 68 | 29 | |||||||||||||||||||
Fair value items |
7 | (10 | ) | | | | ||||||||||||||||||
Realized gains / (losses) on investments |
2 | 2 | | 3 | (33 | ) | ||||||||||||||||||
Impairment charges |
(4 | ) | (25 | ) | 84 | (2 | ) | (100 | ) | |||||||||||||||
Other income / (charges) |
(18 | ) | 1 | | 11 | | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Income before tax |
75 | 33 | 127 | 80 | (6 | ) | ||||||||||||||||||
Income tax |
(27 | ) | (10 | ) | (170 | ) | (31 | ) | 13 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Net income |
48 | 23 | 109 | 49 | (2 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income / (loss) attributable to: |
||||||||||||||||||||||||
Equity holders of AEGON N.V. |
48 | 21 | 129 | 49 | (2 | ) | ||||||||||||||||||
Non-controlling interests |
| 2 | | | | |||||||||||||||||||
Net underlying earnings |
59 | 55 | 7 | 44 | 34 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commissions and expenses |
208 | 217 | (4 | ) | 203 | 2 | ||||||||||||||||||
143 | 153 | (7 | ) | 149 | (4 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
New life sales |
12 | |||||||||||||||||||||||
Life single premiums |
146 | 230 | (37 | ) | 209 | (30 | ) | |||||||||||||||||
Life recurring premiums annualized |
66 | 60 | 10 | 63 | 5 | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total recurring plus 1/10 single |
80 | 83 | (4 | ) | 84 | (5 | ) | |||||||||||||||||
Life |
75 | 80 | (6 | ) | 70 | 7 | ||||||||||||||||||
Associates |
5 | 3 | 67 | 14 | (64 | ) | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total recurring plus 1/10 single |
80 | 83 | (4 | ) | 84 | (5 | ) | |||||||||||||||||
Central Eastern Europe |
27 | 26 | 4 | 27 | | |||||||||||||||||||
Asia |
15 | 15 | | 19 | (21 | ) | ||||||||||||||||||
Spain & France |
38 | 42 | (10 | ) | 38 | | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total recurring plus 1/10 single |
80 | 83 | (4 | ) | 84 | (5 | ) | |||||||||||||||||
New premium production accident and health insurance |
10 | 9 | 11 | 10 | | |||||||||||||||||||
New premium production general insurance |
5 | 7 | (29 | ) | 5 | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Gross deposits (on and off balance) |
12 | |||||||||||||||||||||||
Central Eastern Europe |
116 | 153 | (24 | ) | 182 | (36 | ) | |||||||||||||||||
Asia |
34 | 32 | 6 | 11 | | |||||||||||||||||||
Spain & France |
10 | 34 | (71 | ) | 8 | 25 | ||||||||||||||||||
Variable Annuities Europe |
120 | 118 | 2 | 131 | (8 | ) | ||||||||||||||||||
AEGON Asset Management |
2,803 | 1,185 | 137 | 935 | 200 | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total gross deposits |
3,083 | 1,522 | 103 | 1,267 | 143 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net deposits (on and off balance) |
12 | |||||||||||||||||||||||
Central Eastern Europe |
42 | 144 | (71 | ) | 108 | (61 | ) | |||||||||||||||||
Asia |
31 | 29 | 7 | 11 | 182 | |||||||||||||||||||
Spain & France |
(26 | ) | (12 | ) | (117 | ) | (11 | ) | (136 | ) | ||||||||||||||
Variable Annuities Europe |
28 | 38 | (26 | ) | 26 | 8 | ||||||||||||||||||
AEGON Asset Management |
1,289 | (91 | ) | | (1,853 | ) | | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total net deposits |
1,364 | 108 | | (1,719 | ) | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Page 18 of 22
APPENDIX II
MARKET CONSISTENT VALUE OF NEW BUSINESS
MC VNB | ||||||||||||||||||||||||
EUR millions, after tax |
Q1 2012 | Q4 2011 | % | Q1 2011 | % | |||||||||||||||||||
Americas |
47 | (5 | ) | | 66 | (29 | ) | |||||||||||||||||
The Netherlands |
27 | 37 | (27 | ) | 1 | | ||||||||||||||||||
United Kingdom |
27 | 24 | 13 | 19 | 42 | |||||||||||||||||||
New Markets |
24 | 15 | 60 | 35 | (31 | ) | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total |
125 | 71 | 76 | 121 | 3 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
MODELED NEW BUSINESS, APE AND DEPOSITS | ||||||||||||||||||||||||
Premium business APE |
||||||||||||||||||||||||
EUR millions |
Notes | Q1 2012 | Q4 2011 | % | Q1 2011 | % | ||||||||||||||||||
9 | ||||||||||||||||||||||||
Americas |
279 | 284 | (2 | ) | 218 | 28 | ||||||||||||||||||
The Netherlands |
70 | 173 | (60 | ) | 75 | (7 | ) | |||||||||||||||||
United Kingdom |
216 | 187 | 16 | 237 | (9 | ) | ||||||||||||||||||
New Markets |
129 | 108 | 19 | 120 | 8 | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total |
694 | 752 | (8 | ) | 650 | 7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposit business Deposits | ||||||||||||||||||||||||
EUR millions |
Notes | Q1 2012 | Q4 2011 | % | Q1 2011 | % | ||||||||||||||||||
9 | ||||||||||||||||||||||||
Americas |
4,935 | 3,449 | 43 | 4,340 | 14 | |||||||||||||||||||
United Kingdom |
8 | 10 | (20 | ) | 19 | (58 | ) | |||||||||||||||||
New Markets |
180 | 251 | (28 | ) | 215 | (16 | ) | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total |
5,123 | 3,710 | 38 | 4,574 | 12 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
MC VNB/PVNBP SUMMARY
Premium business | ||||||||||||||||||||
MC VNB | PVNBP | MC VNB / PVNBP |
MC VNB / APE |
|||||||||||||||||
EUR millions |
Notes | Q1 2012 | % | % | ||||||||||||||||
10 | ||||||||||||||||||||
Americas |
32 | 1,212 | 2.6 | 11.3 | ||||||||||||||||
The Netherlands |
27 | 816 | 3.3 | 38.5 | ||||||||||||||||
United Kingdom |
27 | 1,408 | 1.9 | 12.4 | ||||||||||||||||
New Markets |
23 | 962 | 2.4 | 18.1 | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Total |
109 | 4,398 | 2.5 | 15.7 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Deposit business | ||||||||||||||||||||
MC VNB | PVNBP | MC VNB / PVNBP |
MC VNB / Deposits |
|||||||||||||||||
EUR millions |
Notes | Q1 2012 | % | % | ||||||||||||||||
10 | ||||||||||||||||||||
Americas |
15 | 7,424 | 0.2 | 0.3 | ||||||||||||||||
United Kingdom |
| 8 | | | ||||||||||||||||
New Markets |
1 | 280 | 0.2 | 0.4 | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Total |
16 | 7,712 | 0.2 | 0.3 | ||||||||||||||||
|
|
|
|
|
|
|
|
Page 19 of 22
Notes:
1) | For segment reporting purposes underlying earnings before tax, net underlying earnings, commissions and expenses, operating expenses, income tax including associated companies, income before tax including associated companies and market consistent value of new business are calculated by consolidating on a proportionate basis the revenues and expenses of certain of our associated companies in Spain, India, Brazil and Mexico. We believe that our non-IFRS measures provide meaningful information about the underlying operating results of our business including insight into the financial measures that our senior management uses in managing our business. Among other things our senior management is compensated based in part on AEGONs results against targets using the non-IFRS measures presented here. While other insurers in our peer group present substantially similar non-IFRS measures, the non-IFRS measures presented in this document may nevertheless differ from the non-IFRS measures presented by other insurers. There is no standardized meaning to these measures under IFRS or any other recognized set of accounting standards and readers are cautioned to consider carefully the different ways in which we and our peers present similar information before comparing them. |
AEGON believes the non-IFRS measures shown herein, when read together with our reported IFRS financial statements, provide meaningful supplemental information for the investing public to evaluate AEGONs business after eliminating the impact of current IFRS accounting policies for financial instruments and insurance contracts, which embed a number of accounting policy alternatives that companies may select in presenting their results (i.e. companies can use different local GAAPs) and that can make the comparability from period to period difficult.
For a definition of underlying earnings and the reconciliation from underlying earnings before tax to income before tax we refer to Note 3 Segment information of our Condensed consolidated interim financial statements.
2) | Net income refers to net income attributable to equity holders of AEGON N.V. and minority interest. |
3) | Sales is defined as new recurring premiums plus 1/10 of single premiums plus 1/10 of gross deposits plus new premium production accident and health plus new premium production general insurance. |
4) | The present value, at point of sale, of all cashflows for new business written during the reporting period, calculated using approximate point of sale economics assumptions. Market consistent value of new business is calculated using a risk neutral approach, ignoring the investment returns expected to be earned in the future in excess of risk free rates (swap curves), with the exeption of an allowance for liquidity premium. The market consistent value of new business is calculated on a post tax basis, after allowing for the time value financial options and guarentees, a market value margin for non-hedgeable financial and non-financial risks and the costs of non-hedgeable stranded capital. |
5) | Return on equity is calculated by dividing the net underlying earnings after cost of leverage by the average shareholders equity excluding the preferred shares and the revaluation reserve. |
6) | Capital securities that are denominated in foreign currencies are, for purposes of calculating the capital base ratio, revalued to the period-end exchange rate. All ratios exclude AEGONs revaluation reserve. |
7) | Included in other income/(charges) are charges made to policyholders with respect to income tax in the United Kingdom. |
8) | Includes production on investment contracts without a discretionary participation feature of which the proceeds are not recognized as revenues but are directly added to our investment contract liabilities. |
9) | APE = recurring premium + 1/10 single premium. |
10) | PVNBP: Present value of new business premiums (PVNBP) is the premiums for the new business sold during the reporting period, projected using assumptions and projection periods that are consistent with those used to calculate the market consistent value of new business, discounted back to point of sale using the swap curve (plus liquidity premium where applicable). |
11) | Reconciliation of operating expenses, used for segment reporting, to our IFRS based operating expenses. |
Q1 2012 | ||||
Employee expenses |
504 | |||
Administrative expenses |
262 | |||
|
|
|||
Operating expenses for IFRS reporting |
766 | |||
Operating expenses related to associates |
15 | |||
|
|
|||
Operating expenses in earnings release |
781 |
12) | New life sales, gross deposits and net deposits data include results of our associated companies in Spain, India, Brazil and Mexico which are consolidated on a proportionate basis. |
13) | Operational free cash flow reflect the sum of the return on free surplus, earnings on in-force business, release of required surplus on in-force business reduced by new business first year strain and required surplus on new business. Refer to our Embedded Value 2011 report for further details. |
a) | The calculation of the IGD (Insurance Group Directive) capital surplus and ratio are based on Solvency I capital requirements on IFRS for entities within the EU (Pillar 1 for AEGON UK), and local regulatory solvency measurements for non-EU entities. Specifically, required capital for the life insurance companies in the US is calculated as two times the upper end of the Company Action Level range (200%) as applied by the National Association of Insurance Commissioners in the US. The calculation of the IGD ratio excludes the available and required capital of the UK With-Profit funds. In the UK solvency surplus calculation the local regulator only allows the available capital number of the With-Profit funds included in overall local available capital to be equal to the amount of With-Profit funds required capital. |
b) | The results in this release are unaudited. |
c) | The comparative 2011 figures have been revised to reflect changes in AEGONs organization. Businesses in Asia, which were previously managed by AEGON Americas, are included in the Asia line of business within the New Markets segment. This revision in financial reporting reflects changes in management of the organization, as AEGONs Asian operations are now managed from the companys regional head office in Hong Kong. |
Currencies
Income statement items: average rate 1 EUR = USD 1.3101 (2011: USD 1.3663).
Income statement items: average rate 1 EUR = GBP 0.8335 (2011: GBP 0.8523).
Balance sheet items: closing rate 1 EUR = USD 1.3317 (2011: USD 1.4207; year-end 2011: USD 1.2982).
Balance sheet items: closing rate 1 EUR = GBP 0.8335 (2011: GBP 0.8837; year-end 2011: GBP 0.8353).
Page 20 of 22
ADDITIONAL INFORMATION
The Hague, May 10, 2012
Media conference call
7:45 a.m. CET: Podcast available after the call on www.aegon.com
Analyst & investor conference call
9:00 a.m. CET: Audio webcast on www.aegon.com
Call-in numbers
United States: +1 480 629 9673
United Kingdom: +44 207 153 2027
The Netherlands: +31 45 631 6902
Replay
Two hours after the conference call, a replay will be available on www.aegon.com.
Supplements
AEGONs Q1 2012 Financial Supplement and Condensed Consolidated Interim Financial Statements are available on www.aegon.com.
About AEGON
As an international life insurance, pensions and asset management company based in The Hague, AEGON has businesses in over twenty markets in the Americas, Europe and Asia. AEGON companies employ over 25,000 people and have nearly 47 million customers across the globe.
|
|
Contact information
Media Relations: Greg Tucker + 31 (0) 70 344 8956 gcc-ir@aegon.com
Investor Relations: Willem van den Berg + 31 (0) 70 344 8305 ir@aegon.com
www.aegon.com | ||||||||
Key figures EUR |
Q1 2012 | Full year 2011 | ||||||||
Underlying earnings before tax |
425 million | 1.5 billion | ||||||||
New life sales |
445 million | 1.8 billion | ||||||||
Gross deposits |
11.0 billion | 32 billion | ||||||||
Revenue-generating investments (end of period) |
437 billion | 424 billion |
Page 21 of 22
Cautionary note regarding non-GAAP measures
This document includes certain non-GAAP financial measures: underlying earnings before tax and market consistent value of new business. The reconciliation of underlying earnings before tax to the most comparable IFRS measure is provided in Note 3 Segment information of our Condensed consolidated interim financial statements. Market consistent value of new business is not based on IFRS, which are used to report AEGONs primary financial statements and should not be viewed as a substitute for IFRS financial measures. We may define and calculate market consistent value of new business differently than other companies. AEGON believes that these non-GAAP measures, together with the IFRS information, provide a meaningful measure for the investment community to evaluate AEGONs business relative to the businesses of our peers.
Local currencies and constant currency exchange rates
This document contains certain information about AEGONs results and financial condition in USD for the Americas and GBP for the United Kingdom, because those businesses operate and are managed primarily in those currencies. Certain comparative information presented on a constant currency basis eliminates the effects of changes in currency exchange rates. None of this information is a substitute for or superior to financial information about us presented in EUR, which is the currency of AEGONs primary financial statements.
Forward-looking statements
The statements contained in this document that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: aim, believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, goal, should, would, is confident, will, and similar expressions as they relate to AEGON. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. AEGON undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties. Such risks and uncertainties include but are not limited to the following:
| Changes in general economic conditions, particularly in the United States, the Netherlands and the United Kingdom; |
| Changes in the performance of financial markets, including emerging markets, such as with regard to: |
| The frequency and severity of defaults by issuers in AEGONs fixed income investment portfolios; |
| The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities AEGON holds; and |
| The effects of declining creditworthiness of certain private sector securities and the resulting decline in the value of sovereign exposure that AEGON holds; |
| Changes in the performance of AEGONs investment portfolio and decline in ratings of the companys counterparties; |
| Consequences of a potential (partial) break-up of the euro; |
| The frequency and severity of insured loss events; |
| Changes affecting mortality, morbidity, persistence and other factors that may impact the profitability of AEGONs insurance products; |
| Reinsurers to whom AEGON has ceded significant underwriting risks may fail to meet their obligations; |
| Changes affecting interest rate levels and continuing low or rapidly changing interest rate levels; changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates; |
| Changes in the availability of, and costs associated with, liquidity sources such as bank and capital markets funding, as well as conditions in the credit markets in general such as changes in borrower and counterparty creditworthiness; |
| Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets; |
| Changes in laws and regulations, particularly those affecting AEGONs operations, ability to hire and retain key personnel, the products the company sells, and the attractiveness of certain products to its consumers; |
| Regulatory changes relating to the insurance industry in the jurisdictions in which AEGON operates; |
| Acts of God, acts of terrorism, acts of war and pandemics; |
| Changes in the policies of central banks and/or governments; |
| Lowering of one or more of AEGONs debt ratings issued by recognized rating organizations and the adverse impact such action may have on the companys ability to raise capital and on its liquidity and financial condition; |
| Lowering of one or more of insurer financial strength ratings of AEGONs insurance subsidiaries and the adverse impact such action may have on the premium writings, policy retention, profitability of its insurance subsidiaries and liquidity; |
| The effect of the European Unions Solvency II requirements and other regulations in other jurisdictions affecting the capital AEGON is required to maintain; |
| Litigation or regulatory action that could require AEGON to pay significant damages or change the way the company does business; |
| As AEGONs operations support complex transactions and are highly dependent on the proper functioning of information technology, a computer system failure or security breach may disrupt the companys business, damage its reputation and adversely affect its results of operations, financial condition and cash flows; |
| Customer responsiveness to both new products and distribution channels; |
| Competitive, legal, regulatory, or tax changes that affect profitability, the distribution cost of or demand for AEGONs products; |
| Changes in accounting regulations and policies may affect AEGONs reported results and shareholders equity; |
| The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including AEGONs ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions; |
| Catastrophic events, either manmade or by nature, could result in material losses and significantly interrupt AEGONs business; and |
| AEGONs failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving initiatives. |
Further details of potential risks and uncertainties affecting the company are described in the companys filings with NYSE Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the companys expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Page 22 of 22