Edgar Filing: AEGON NV

6-K

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

August 2014

AEGON N.V.

Aegonplein 50

2591 TV THE HAGUE

The Netherlands

Aegon’s condensed consolidated interim financial statements Q2 2014, dated August 14, 2014, are 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: August 14, 2014	By	/s/ J.H.P.M. van Rossum
		J.H.P.M. van Rossum
		Executive Vice President Corporate Controller

LOGO

Table of contents



Condensed consolidated income statement			2

Condensed consolidated statement of comprehensive income			3

Condensed consolidated statement of financial position			4

Condensed consolidated statement of changes in equity			5

Condensed consolidated cash flow statement			6

Notes to the condensed consolidated interim financial statements			7


Unaudited		1

LOGO


Condensed consolidated income statement

EUR millions	Notes	Q2 2014		Q2 2013		YTD 2014		YTD 2013

Premium income	4	4,360		4,947		9,625		11,214
Investment income	5	2,140		2,048		4,088		4,061
Fee and commission income		487		501		953		967
Other revenues		2		2		3		4
Total revenues		6,989		7,498		14,669		16,246
Income from reinsurance ceded		744		561		1,443		1,364
Results from financial transactions	6	4,444		(2,460	)	6,672		5,271
Other income		3		109		12		196
Total income		12,181		5,708		22,795		23,077

Benefits and expenses	7	11,695		5,302		21,708		22,183
Impairment charges / (reversals)	8	8		49		16		74
Interest charges and related fees		65		83		182		186
Other charges		4		22		6		117
Total charges		11,772		5,456		21,912		22,560

Share in net result of joint ventures		14		5		20		(3	)
Share in net result of associates		8		9		16		14
Income before tax		431		266		919		528
Income tax (expense) / benefit		(88	)	(26	)	(184	)	(64	)
Net income		343		240		735		464

Net income attributable to:
Equity holders of Aegon N.V.		343		239		735		463
Non-controlling interests		-		1		-		1

Earnings per share (EUR per share)	14
Basic earnings per common share		0.15		0.07		0.31		0.16
Basic earnings per common share B		-		-		0.01		-
Diluted earnings per common share		0.15		0.07		0.31		0.16
Diluted earnings per common share B		-		-		0.01		-

Amounts for 2013 have been restated for the voluntary changes in accounting policies for deferred policy acquisition costs and longevity reserving. Refer to note 2.1 for details about these changes.


2		Unaudited

LOGO


Condensed consolidated statement of comprehensive income
EUR millions	Q2 2014			Q2 2013			YTD 2014			YTD 2013

Net income		343			240			735			464

Other comprehensive income:
Items that will not be reclassified to profit or loss:
Changes in revaluation reserve real estate held for own use		(2	)		-			(2	)		1
Remeasurements of defined benefit plans		(209	)		167			(443	)		289
Income tax relating to items that will not be reclassified		59			(59	)		125			(109	)

Items that may be reclassified subsequently to profit or loss:
Gains / (losses) on revaluation of available-for-sale investments		1,493			(2,573	)		3,312			(2,920	)
(Gains) / losses transferred to the income statement on disposal and impairment of available-for-sale investments		(207	)		(44	)		(319	)		(157	)
Changes in cash flow hedging reserve		182			(216	)		380			(311	)
Movement in foreign currency translation and net foreign investment hedging reserve		192			(241	)		173			19
Equity movements of joint ventures		6			(16	)		12			(6	)
Equity movements of associates		7			(3	)		6			7
Income tax relating to items that may be reclassified		(408	)		823			(988	)		992
Other		(3	)		(6	)		(5	)		(3	)
Other comprehensive income for the period		1,110			(2,168	)		2,252			(2,198	)
Total comprehensive income		1,453			(1,928	)		2,987			(1,734	)

Total comprehensive income attributable to:
Equity holders of Aegon N.V.		1,453			(1,927	)		2,988			(1,732	)
Non-controlling interests		-			(1	)		(1	)		(2	)

Amounts for 2013 have been restated for the voluntary changes in accounting policies for deferred policy acquisition costs and longevity reserving. Refer to note 2.1 for details about these changes.


Unaudited		3

LOGO


Condensed consolidated statement of financial position
		Jun. 30, 2014		Dec. 31, 2013
EUR millions	Notes

Assets
Intangible assets			2,128		2,272
Investments	9		142,278		135,409
Investments for account of policyholders	10		174,590		165,032
Derivatives	11		19,937		13,531
Investments in joint ventures			1,429		1,426
Investments in associates			501		470
Reinsurance assets			9,760		10,344
Deferred expenses	13		9,931		10,006
Other assets and receivables			7,583		7,586
Cash and cash equivalents			7,850		5,691
Total assets			375,988		351,767

Equity and liabilities
Shareholders’ equity			20,325		17,601
Other equity instruments	15		3,811		5,015
Issued capital and reserves attributable to equity holders of Aegon N.V.			24,136		22,616
Non-controlling interests			9		10
Group equity			24,144		22,626

Trust pass-through securities			125		135
Subordinated borrowings	16		739		44
Insurance contracts			104,614		101,769
Insurance contracts for account of policyholders			90,957		84,311
Investment contracts			13,934		14,545
Investment contracts for account of policyholders			85,917		82,608
Derivatives	11		17,532		11,838
Borrowings	17		13,441		12,020
Other liabilities			24,584		21,871
Total liabilities			351,844		329,141
Total equity and liabilities			375,988		351,767

Amounts for 2013 have been restated for the voluntary changes in accounting policies for deferred policy acquisition costs and longevity reserving. Refer to note 2.1 for details about these changes.


4		Unaudited

LOGO


Condensed consolidated statement of changes in equity
EUR millions	Share capital ¹			Retained earnings			Revaluation reserves			Remeasurement of defined benefit plans			Other reserves			Other equity instruments			Issued capital and reserves ²			Non- controlling interests			Total

Six months ended June 30, 2014

At beginning of year		8,701			8,361			3,023			(706	)		(1,778	)		5,015			22,616			10			22,626

Net income recognized in the income statement		-			735			-			-			-			-			735			-			735

Other comprehensive income:
*Items that will not be reclassified to profit or loss:*
Changes in revaluation reserve real estate held for own use		-			-			(2	)		-			-			-			(2	)		-			(2	)
Remeasurements of defined benefit plans		-			-			-			(443	)		-			-			(443	)		-			(443	)
Income tax relating to items that will not be reclassified		-			-			1			125			-			-			125			-			125

*Items that may be reclassified subsequently to profit or loss:*
Gains / (losses) on revaluation of available-for-sale investments		-			-			3,312			-			-			-			3,312			-			3,312
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments		-			-			(319	)		-			-			-			(319	)		-			(319	)
Changes in cash flow hedging reserve		-			-			380			-			-			-			380			-			380
Movement in foreign currency translation and net foreign investment hedging reserves		-			-			-			(10	)		183			-			173			-			173
Equity movements of joint ventures		-			-			-			-			12			-			12			-			12
Equity movements of associates		-			-			-			-			6			-			6			-			6
Income tax relating to items that may be reclassified		-			-			(985	)		-			(3	)		-			(988	)		-			(988	)
Other		-			(4	)		-			-			-			-			(4	)		(1	)		(5	)
Total other comprehensive income		-			(4	)		2,387			(328	)		198			-			2,253			(1	)		2,252
Total comprehensive income/ (loss) for 2014		-			732			2,387			(328	)		198			-			2,988			(1	)		2,987

Issuance and purchase of treasury shares		-			(65	)		-			-			-			-			(65	)		-			(65	)
Other equity instruments redeemed		-			15			-			-			-			(1,184	)		(1,169	)		-			(1,169	)
Dividends paid on common shares		-			(138	)		-			-			-			-			(138	)		-			(138	)
Coupons on non-cumulative subordinated notes		-			(11	)		-			-			-			-			(11	)		-			(11	)
Coupons on perpetual securities		-			(72	)		-			-			-			-			(72	)		-			(72	)
Share options and incentive plans		-			7			-			-			-			(20	)		(13	)		-			(13	)
At end of period		8,701			8,830			5,410			(1,034	)		(1,581	)		3,811			24,136			9			24,144

Six months ended June 30, 2013

At beginning of year (as previously stated)		9,099			10,446			6,073			(1,085	)		(1,045	)		5,018			28,506			13			28,519

Changes in accounting policies relating to deferred policy acquisition costs		-			(1,472	)		43			-			(58	)		-			(1,487	)		-			(1,487	)
Changes in accounting policies relating to policy longevity methodology		-			(925	)		-			-			-			-			(925	)		-			(925	)

At beginning of year, restated		9,099			8,049			6,116			(1,085	)		(1,103	)		5,018			26,094			13			26,107

Net income recognized in the income statement		-			463			-			-			-			-			463			1			464

Other comprehensive income:
Items that will not be reclassified to profit or loss:
Changes in revaluation reserve real estate held for own use		-			-			1			-			-			-			1			-			1
Remeasurements of defined benefit plans		-			-			-			289			-			-			289			-			289
Income tax relating to items that will not be reclassified		-			-			-			(109	)		-			-			(109	)		-			(109	)

Items that may be reclassified subsequently to profit or loss:
Gains / (losses) on revaluation of available-for-sale investments		-			-			(2,920	)		-			-			-			(2,920	)		-			(2,920	)
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments		-			-			(157	)		-			-			-			(157	)		-			(157	)
Changes in cash flow hedging reserve		-			-			(311	)		-			-			-			(311	)		-			(311	)
Movement in foreign currency translation and net foreign investment hedging reserves		-			-			-			2			17			-			19			-			19
Equity movements of joint ventures		-			-			-			-			(6	)		-			(6	)		-			(6	)
Equity movements of associates		-			-			-			-			7			-			7			-			7
Income tax relating to items that may be reclassified		-			-			1,018			-			(26	)		-			992			-			992
Transfer from / to other headings		-			(1	)		1			-			-			-			-			-			-
Other		-			-			-			-			-			-			-			(3	)		(3	)
Total other comprehensive income		-			(1	)		(2,368	)		182			(8	)		-			(2,195	)		(3	)		(2,198	)
Total comprehensive income / (loss) for 2013		-			462			(2,368	)		182			(8	)		-			(1,732	)		(2	)		(1,734	)

Shares issued		2			-			-			-			-			-			2			-			2
Issuance and purchase of treasury shares		-			31			-			-			-			-			31			-			31
Dividends paid on common shares		-			(113	)		-			-			-			-			(113	)		-			(113	)
Preferred dividend		-			(83	)		-			-			-			-			(83	)		-			(83	)
Coupons on non-cumulative subordinated notes		-			(9	)		-			-			-			-			(9	)		-			(9	)
Coupons on perpetual securities		-			(60	)		-			-			-			-			(60	)		-			(60	)
Share options and incentive plans		-			27			-			-			-			(28	)		(1	)		-			(1	)
Repurchased and sold own shares		(400	)		(1	)		-			-			-			-			(401	)		-			(401	)
At end of period		8,701			8,303			3,748			(903	)		(1,111	)		4,990			23,728			11			23,739

¹	For a breakdown of share capital please refer to note 14.

²	Issued capital and reserves attributable to equity holders of Aegon N.V.

Amounts for 2013 have been restated for the voluntary changes in accounting policies for deferred policy acquisition costs and longevity reserving. Refer to note 2.1 for details about these changes.


Unaudited		5

LOGO


Condensed consolidated cash flow statement
EUR millions	Q2 2014			Q2 2013

Cash flow from operating activities		1,555			(732	)

Purchases and disposals of intangible assets		(18	)		(16	)
Purchases and disposals of equipment and other assets		(27	)		(26	)
Purchases, disposals and dividends of subsidiaries, associates and joint ventures		27			151
Cash flow from investing activities		(18	)		109

Issuance and purchase of treasury shares		(38	)		33
Dividends paid		(138	)		(196	)
Repurchased and sold own shares		-			(401	)
Issuances, repurchases and coupons of perpetuals		(1,265	)		(80	)
Issuances, repurchases and coupons of non-cumulative subordinated notes		(15	)		(12	)
Issuances and repayments of borrowings		1,788			(255	)
Cash flow from financing activities		331			(911	)

Net increase / (decrease) in cash and cash equivalents		1,868			(1,534	)
Net cash and cash equivalents at January 1		5,652			9,497
Effects of changes in foreign exchange rates		34			(17	)
Net cash and cash equivalents at end of period		7,554			7,946


Cash and cash equivalents		7,850			8,069
Bank overdrafts		(296	)		(123	)
Net cash and cash equivalents		7,554			7,946


6		Unaudited

LOGO

Notes to the Condensed Consolidated Interim Financial Statements

Amounts in EUR millions, unless otherwise stated

Aegon N.V., incorporated and domiciled in the Netherlands, is a public limited liability company organized under Dutch law and recorded in the Commercial Register of The Hague under number 27076669 and with its registered address at Aegonplein 50, 2591 TV, The Hague, the Netherlands. Aegon N.V. serves as the holding company for the Aegon Group and has listings of its common shares in Amsterdam and New York.

Aegon N.V. (or “the company”) and its consolidated subsidiaries (“Aegon” or “the Group”) have life insurance and pensions operations in over twenty countries in the Americas, Europe and Asia and are also active in savings and asset management operations, accident and health insurance, general insurance and to a limited extent banking operations. Its headquarters are located in The Hague, the Netherlands. The Group employs nearly 28,000 people worldwide.

1. Basis of presentation

The condensed consolidated interim financial statements as at, and for the six months ended, June 30, 2014, have been prepared in accordance with IAS 34 “Interim Financial Reporting”, as adopted by the European Union (hereafter “IFRS”). They do not include all of the information required for a full set of financial statements prepared in accordance with IFRS and should therefore be read together with the 2013 consolidated financial statements of Aegon N.V. as included in Aegon’s Annual Report for 2013 and the disclosures provided in note 2.1 and 2.2 of this report which disclose the impact of voluntary changes in accounting policies that were made by Aegon effective January 1, 2014. Aegon’s Annual Report for 2013 is available on its website (aegon.com).

The condensed consolidated interim financial statements have been prepared in accordance with the historical cost convention as modified by the revaluation of investment properties and those financial instruments (including derivatives) and financial liabilities that have been measured at fair value. Certain amounts in prior periods have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income, shareholders’ equity or earnings per share. The condensed consolidated interim financial statements as at, and for the six months ended, June 30, 2014, were approved by the Executive Board on August 13, 2014.

The condensed consolidated interim financial statements are presented in euro and all values are rounded to the nearest million unless otherwise stated. The consequence is that the rounded amounts may not add up to the rounded total in all cases.

The published figures in these condensed consolidated interim financial statements are unaudited.

2. Significant accounting policies

All accounting policies and methods of computation applied in the condensed consolidated interim financial statements are the same as those applied in the 2013 consolidated financial statements, except for the newly applied accounting policies as described in note 2.1 and 2.2.

New IFRS accounting standards effective

The following standards, interpretations, amendments to standards and interpretations became effective in 2014:

IFRS 10 Consolidated Financial Statements – Amendment Investment Entities;

IAS 36 Impairment of Assets – Recoverable Amounts Disclosures for Non-Financial Assets; and

IAS 39 – Novation of Derivatives and Continuation of Hedge Accounting.

None of these new or revised standards and interpretations had a significant effect on the condensed consolidated interim financial statements for the period ended June 30, 2014.


Unaudited		7

LOGO

For a complete overview of IFRS standards, published before January 1, 2014, that will be applied in future years, but were not early adopted by the Group, please refer to Aegon’s Annual Report for 2013.

Taxes

Taxes on income for the six months interim period, ending June 30, 2014, are accrued using the tax rate that would be applicable to expected total annual earnings.

Judgments and critical accounting estimates

Preparing the condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions, including the likelihood, timing or amount of future transactions or events, that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from the estimates made.

In preparing the condensed consolidated interim financial statements, significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2013.

Exchange rates

Assets and liabilities are translated at the closing rates on the balance sheet date. Income, expenses and capital transactions (such as dividends) are translated at average exchange rates or at the prevailing rates on the transaction date, if more appropriate. The following exchange rates are applied for the condensed consolidated interim financial statements:

Closing exchange rates


			USD	GBP
June 30, 2014	1	EUR	1.3692	0.8008
December 31, 2013	1	EUR	1.3780	0.8320

Weighted average exchange rates


			USD	GBP
Six months ended June 30, 2014	1	EUR	1.3704	0.8212
Six months ended June 30, 2013	1	EUR	1.3124	0.8502


8		Unaudited

LOGO

2.1 Voluntary changes in accounting policies

Aegon adopted voluntary changes in accounting policies, effective January 1, 2014, which are applied retrospectively for all periods presented in this document, both in the main schedules and the associated footnotes. Changes to these policies relate to deferred policy acquisition costs and how Aegon accounts for longevity trends in The Netherlands. In the paragraphs below, details are provided for these changes in accounting policies.

Deferred policy acquisition costs

Aegon adopted a single group-wide accounting policy for deferred policy acquisition costs as of January 1, 2014. Upon initial adoption of IFRS, entities were permitted to continue existing accounting policies for insurance contracts even though such policies were often non-uniform between countries. Through adoption of a uniform, group-wide accounting policy, Aegon eliminates this lack of uniformity for the deferral of policy acquisition costs thereby providing the users of the financial statements with more meaningful information.

IFRS 4 neither prohibits nor requires the deferral of policy acquisition costs, nor does it prescribe what acquisition costs are deferrable. Thus, in developing the new policy, Aegon considered and sought alignment with the proposed description of deferrable policy acquisition costs within the IFRS Insurance Contracts Phase II exposure draft (Exposure Draft). In the absence of detailed guidance in the Exposure Draft, Aegon also considered the recently adopted guidance in U.S. GAAP (ASU 2010-26 “Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts”), if not conflicting with IFRS 4 or the Exposure Draft. IFRS currently differs from US GAAP by not limiting the deferral to expenses from successful efforts only and in the detail of how that principle is applied. Under the new accounting policy, deferred policy acquisition costs include costs that are directly attributable to the acquisition or renewal of insurance contracts. The previous accounting policy was based on a broader definition of costs that could be deferred.

Details of the impact of applying this voluntary change to previous periods are provided in the tables presented in note 2.2.

Longevity reserving

As of January 1, 2014, Aegon amended its policy to determine the insurance contract liability of Aegon The Netherlands to account for longevity risk assumed by Aegon. This change will provide more current information about the financial effects of changes in life expectancy of the insured population. The change will also increase alignment with market pricing of longevity risk. It will supply users of the financial statements with more relevant decision making information on the insurance contract liability and will improve transparency on the longevity risks assumed by Aegon.

Mortality tables will be updated annually based on the prospective tables taking into account longevity trends. The new methodology will take into account the contractual cash flows related to the longevity risk assumed. Previously the methodology applied by Aegon The Netherlands considered realized mortalities based on retrospective mortality tables.

Details of the impact of applying this voluntary change to previous periods are provided in the tables presented in note 2.2.


Unaudited		9

LOGO

2.2 Impact of voluntary changes in accounting policies


Impact of voluntary changes in accounting policies on consolidated income statement
	YTD 2013 (previously reported)			Change in accounting policy						YTD 2013 (restated)

				Deferred policy acquisition costs			Longevity reserving
EUR millions

Benefits and expenses		22,200			36			(53	)		22,183

Income tax (expense) / benefit		(64	)		11			(11	)		(64	)

Net effect					(25	)		42

Earnings per share (EUR per share)
Basic earnings per common share		0.15			-			0.01			0.16
Basic earnings per common share B		-			-			-			-
Diluted earnings per common share		0.15			-			0.01			0.16
Diluted earnings per common share B		-			-			-			-

Earnings per common share calculation
Net income attributable to equity holders of Aegon N.V.		446			(25	)		42			463
Preferred dividend		(83	)		-			-			(83	)
Coupons on other equity instruments		(69	)		-			-			(69	)
Earnings attributable to common shareholders		294			(25	)		42			311

Weighted average number of common shares outstanding (in million)		1,978			-			-			1,978
Weighted average number of common shares B outstanding (in million)		150			-			-			150


Impact of voluntary changes in accounting policies on condensed consolidated statement of comprehensive income
	YTD 2013 (previously reported)			Change in accounting policy					YTD 2013 (restated)

				Deferred policy acquisition costs			Longevity reserving
EUR millions

Net income		447			(25	)		42		464

Gains / (losses) on revaluation of available-for-sale investments		(2,890	)		(30	)		-		(2,920	)
Movement in foreign currency translation and net foreign investment hedging reserves		(29	)		48			-		19
Income tax relating to items that may be reclassified		981			11			-		992
Net effect other comprehensive income for the period					29			-
Net effect comprehensive income					4			42

Total comprehensive income attributable to:
Equity holders of Aegon N.V.		(1,778	)		4			42		(1,732	)
Non-controlling interests		(2	)		-			-		(2	)


10		Unaudited

LOGO


Impact of changes in accounting policies on the consolidated statement of financial position
	December 31, 2013¹⁾		Change in accounting policy						Reclassification ²⁾		December 31, 2013 (restated)

			Deferred policy acquisition costs			Longevity reserving
EUR millions

Assets
Intangible assets		2,246		26			-			-		2,272
Investments in joint ventures		1,427		(1	)		-			-		1,426
Reinsurance assets		10,345		(2	)		-			-		10,344
Other assets and receivables		7,429		2			-			156		7,586
Deferred expenses		12,040		(2,035	)		-			-		10,006

Equity and liabilities
Shareholders’ equity		19,966		(1,533	)		(832	)		-		17,601

Insurance contracts		100,642		54			1,073			-		101,769
Other liabilities		22,487		(531	)		(241	)		156		21,871

¹	As reported in Aegon’s Annual Report dated March 19, 2014.

²	As a result of the voluntary accounting changes the balance of the Dutch tax group as at December 31, 2013 changed from a deferred tax liability to a deferred tax asset.


Impact of voluntary changes in accounting policies on consolidated statement of changes in equity
	December 31, 2013¹⁾			Change in accounting policy						December 31, 2013 (restated)

				Deferred policy acquisition costs			Longevity reserving
EUR millions

Share capital		8,701			-			-			8,701
Retained earnings		10,750			(1,557	)		(832	)		8,361
Revaluation reserves		2,998			26			-			3,023
Remeasurement of defined benefit plans		(706	)		-			-			(706	)
Other reserves		(1,777	)		(1	)		-			(1,778	)
Shareholders’ equity		19,966			(1,533	)		(832	)		17,601

¹	As reported in Aegon’s Annual Report dated March 19, 2014.


Unaudited		11

LOGO

3. Segment information

3.1 Income statement


EUR millions	Americas			The Netherlands			United Kingdom			New Markets			Holding and other activities			Eliminations			Segment Total			Joint ventures and associates eliminations			Consolidated
*Three months ended June 30, 2014*

Underlying earnings before tax geographically		331			131			32			62			(42	)		-			514			-			514
Fair value items		(118	)		(132	)		(13	)		1			-			-			(263	)		1			(262	)
Realized gains / (losses) on investments		51			47			97			2			-			-			198			(1	)		197
Impairment charges		(6	)		(5	)		-			(15	)		-			-			(26	)		-			(26	)
Impairment reversals		21			2			-			-			-			-			23			-			23
Other income / (charges)		(11	)		(5	)		2			1			(1	)		-			(14	)		(1	)		(15	)
Run-off businesses		(1	)		-			-			-			-			-			(1	)		-			(1	)
Income before tax		268			39			117			51			(43	)		-			432			(1	)		431
Income tax (expense) / benefit		(51	)		(7	)		(27	)		(16	)		13			-			(88	)		1			(88	)
Net income		216			32			90			35			(30	)		-			343			-			343
Inter-segment underlying earnings		(42	)		(15	)		(14	)		65			6

Revenues
Life insurance gross premiums		1,538			540			1,171			486			(1	)		(18	)		3,716			(88	)		3,628
Accident and health insurance		454			39			14			35			1			(1	)		542			(1	)		541
General insurance		-			154			-			56			-			-			211			(20	)		191
Total gross premiums		1,991			734			1,186			577			-			(20	)		4,469			(109	)		4,360
Investment income		798			684			608			60			80			(79	)		2,151			(10	)		2,140
Fee and commission income		328			80			10			148			-			(56	)		509			(22	)		487
Other revenues		-			-			-			-			1			-			2			-			2
Total revenues		3,118			1,498			1,803			785			82			(155	)		7,131			(142	)		6,989
Inter-segment revenues		4			-			-			71			80


EUR millions	Americas			The Netherlands			United Kingdom			New Markets			Holding and other activities			Eliminations			Segment Total			Joint ventures and associates eliminations			Consolidated
*Three months ended June 30, 2013*

Underlying earnings before tax geographically		341			102			24			49			(34	)		(1	)		481			(5	)		476
Fair value items		(163	)		(36	)		-			(8	)		(79	)		-			(286	)		12			(274	)
Realized gains / (losses) on investments		29			23			28			1			-			-			81			(1	)		80
Impairment charges		(40	)		(14	)		(16	)		4			-			-			(66	)		-			(66	)
Impairment reversals		9			-			-			-			-			-			9			-			9
Other income / (charges)		(1	)		(27	)		(51	)		106			-			-			27			(1	)		26
Run-off businesses		15			-			-			-			-			-			15			-			15
Income before tax		190			48			(15	)		152			(113	)		(1	)		261			5			266
Income tax (expense) / benefit		(41	)		(6	)		10			(12	)		28			-			(21	)		(5	)		(26	)
Net income		149			42			(5	)		140			(85	)		(1	)		240			-			240
Inter-segment underlying earnings		(43	)		(14	)		(15	)		64			8

Revenues
Life insurance gross premiums		1,546			616			1,814			369			1			(19	)		4,327			(103	)		4,224
Accident and health insurance		452			49			-			37			2			(2	)		538			(1	)		537
General insurance		-			150			-			42			-			-			192			(6	)		186
Total gross premiums		1,998			815			1,814			448			3			(21	)		5,057			(110	)		4,947
Investment income		855			549			602			60			87			(89	)		2,064			(16	)		2,048
Fee and commission income		331			81			30			141			-			(62	)		521			(20	)		501
Other revenues		2			-			-			-			1			-			3			(1	)		2
Total revenues		3,186			1,445			2,446			649			91			(172	)		7,645			(147	)		7,498
Inter-segment revenues		5			-			1			76			90


12		Unaudited

LOGO


EUR millions	Americas			The Netherlands			United Kingdom			New Markets			Holding and other activities			Eliminations			Segment Total			Joint ventures and associates eliminations			Consolidated
*Six months ended June 30, 2014*

Underlying earnings before tax geographically		633			259			58			123			(63	)		1			1,012			(8	)		1,004
Fair value items		(167	)		(167	)		(16	)		8			(36	)		-			(379	)		5			(373	)
Realized gains / (losses) on investments		60			131			113			4			-			-			308			(1	)		306
Impairment charges		(12	)		(9	)		-			(24	)		-			-			(45	)		-			(45	)
Impairment reversals		31			4			-			-			-			-			35			-			35
Other income / (charges)		(8	)		(8	)		(2	)		(1	)		(1	)		-			(20	)		(1	)		(21	)
Run-off businesses		13			-			-			-			-			-			13			-			13
Income before tax		550			211			154			109			(101	)		1			924			(5	)		919
Income tax (expense) / benefit		(115	)		(35	)		(36	)		(32	)		29			-			(189	)		5			(184	)
Net income		435			175			118			77			(71	)		1			735			-			735
Inter-segment underlying earnings		(83	)		(29	)		(28	)		130			10

Revenues
Life insurance gross premiums		3,026			2,039			2,391			859			1			(36	)		8,280			(173	)		8,107
Accident and health insurance		871			170			29			90			2			(2	)		1,160			(9	)		1,151
General insurance		-			290			-			114			-			-			404			(38	)		367
Total gross premiums		3,897			2,498			2,420			1,064			3			(38	)		9,844			(220	)		9,625
Investment income		1,601			1,320			1,072			113			158			(156	)		4,108			(20	)		4,088
Fee and commission income		641			158			20			290			-			(113	)		995			(42	)		953
Other revenues		1			-			-			1			2			-			4			(1	)		3
Total revenues		6,140			3,976			3,512			1,468			163			(308	)		14,952			(283	)		14,669
Inter-segment revenues		8			-			-			141			159


EUR millions	Americas			The Netherlands			United Kingdom			New Markets			Holding and other activities			Eliminations			Segment Total			Joint ventures and associates eliminations			Consolidated
*Six months ended June 30, 2013*

Underlying earnings before tax geographically		648			216			45			109			(72	)		(1	)		945			(24	)		921
Fair value items		(388	)		(109	)		(3	)		(11	)		(54	)		-			(565	)		28			(537	)
Realized gains / (losses) on investments		75			86			29			3			-			-			193			(1	)		192
Impairment charges		(56	)		(22	)		(16	)		(6	)		-			-			(100	)		-			(100	)
Impairment reversals		25			-			-			-			-			-			25			-			25
Other income / (charges)		(6	)		(27	)		(46	)		102			-			-			23			(1	)		22
Run-off businesses		5			-			-			-			-			-			5			-			5
Income before tax		303			144			9			197			(126	)		(1	)		526			2			528
Income tax (expense) / benefit		(43	)		(21	)		1			(28	)		29			-			(62	)		(2	)		(64	)
Net income		260			123			10			169			(97	)		(1	)		464			-			464
Inter-segment underlying earnings		(89	)		(28	)		(29	)		131			15

Revenues
Life insurance gross premiums		3,091			2,631			3,546			719			1			(38	)		9,950			(245	)		9,705
Accident and health insurance		896			172			-			95			4			(4	)		1,163			(8	)		1,155
General insurance		-			278			-			82			-			-			360			(6	)		354
Total gross premiums		3,987			3,081			3,546			896			5			(42	)		11,473			(259	)		11,214
Investment income		1,696			1,097			1,182			125			171			(172	)		4,099			(38	)		4,061
Fee and commission income		628			163			56			275			-			(121	)		1,001			(34	)		967
Other revenues		3			-			-			1			2			-			6			(2	)		4
Total revenues		6,314			4,341			4,784			1,297			178			(335	)		16,579			(333	)		16,246
Inter-segment revenues		10			-			1			149			175

Non-IFRS measures

For segment reporting purposes the following non-IFRS financial measures are included: underlying earnings before tax, income tax and income before tax. These non-IFRS measures are calculated by consolidating on a proportionate basis Aegon’s joint ventures and associated companies. Aegon believes that its non-IFRS measures provide meaningful information about the underlying results of Aegon’s business, including insight into the financial measures that Aegon’s senior management uses in managing the business.

Among other things, Aegon’s senior management is compensated based in part on Aegon’s results against targets using the non-IFRS measures presented here. While many other insurers in Aegon’s 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. Readers are cautioned to consider carefully the different ways in which Aegon and its peers present similar information before comparing them.


Unaudited		13

LOGO

Aegon believes the non-IFRS measures shown herein, when read together with Aegon’s reported IFRS financial statements, provide meaningful supplemental information for the investing public to evaluate Aegon’s business after eliminating the impact of current IFRS accounting policies for financial instruments and insurance contracts, which embed a number of accounting policies alternatives that companies may select in presenting their results (i.e. companies can use different local GAAPs to measure the insurance contract liability) and that can make the comparability from period to period difficult.

The reconciliation from underlying earnings before tax to income before tax, being the most comparable IFRS measure, is presented in the tables in this note.

Underlying earnings

Underlying earnings reflect our profit from underlying business operations and exclude components that relate to accounting mismatches that are dependent on market volatility or relate to events that are considered outside the normal course of business. Below we describe items that are excluded from underlying earnings.

Fair value items

Fair value items include the over- or underperformance of investments and guarantees held at fair value for which the expected long-term return is included in underlying earnings. Changes to these long-term return assumptions are also included in the fair value items.

In addition, hedge ineffectiveness on hedge transactions, fair value changes on economic hedges without natural offset in earnings and for which no hedge accounting is applied and fair value movements on real estate are included under fair value items.

Certain assets held by Aegon Americas, Aegon The Netherlands and Aegon UK are carried at fair value and managed on a total return basis, with no offsetting changes in the valuation of related liabilities. These include assets such as investments in hedge funds, private equities, real estate (limited partnerships), convertible bonds and structured products. Underlying earnings exclude any over- or underperformance compared to management’s long-term expected return on assets.

Based on current holdings and asset returns, the long-term expected return on an annual basis is 8-10%, depending on asset class, including cash income and market value changes. The expected earnings from these asset classes are net of deferred policy acquisition costs (“DPAC”) where applicable.

In addition, certain products offered by Aegon Americas contain guarantees and are reported on a fair value basis, including the segregated funds offered by Aegon Canada and the total return annuities and guarantees on variable annuities of Aegon USA. The earnings on these products are impacted by movements in equity markets and risk-free interest rates. Short-term developments in the financial markets may therefore cause volatility in earnings. Included in underlying earnings is a long-term expected return on these products and excluded is any over- or underperformance compared to management’s expected return.

The fair value movements of certain guarantees and the fair value change of derivatives that hedge certain risks on these guarantees of Aegon The Netherlands and Variable Annuities Europe (included in New Markets) are excluded from underlying earnings, and the long-term expected return for these guarantees is set at zero.


14		Unaudited

LOGO

Holding and other activities include certain issued bonds that are held at fair value through profit or loss (“FVTPL”). The interest rate risk on these bonds is hedged using swaps. The fair value movement resulting from changes in Aegon’s credit spread used in the valuation of these bonds are excluded from underlying earnings and reported under fair value items.

Realized gains or losses on investments

Includes realized gains and losses on available-for-sale investments, mortgage loans and other loan portfolios.

Impairment charges/reversals

Includes impairments and reversals on available-for-sale debt securities and impairments on shares including the effect of deferred policyholder acquisition costs, mortgage loans and loan portfolios at amortized cost and associates respectively.

Other income or charges

Other income or charges is used to report any items which cannot be directly allocated to a specific line of business. Also items that are outside the normal course of business are reported under this heading.

Other charges include restructuring charges that are considered other charges for segment reporting purposes because they are outside the normal course of business. In the condensed consolidated interim financial statements, these charges are included in operating expenses.

Run-off businesses

Includes underlying results of business units where management has decided to exit the market and to run-off the existing block of business. Currently, this line includes the run-off of the institutional spread-based business, structured settlements blocks of business, Bank-Owned and Corporate-Owned Life Insurance (BOLI/COLI) business, and the sale of the life reinsurance business in the United States. Aegon has other blocks of business for which sales have been discontinued and of which the earnings are included in underlying earnings.

Share in earnings of joint ventures and associates

Earnings from Aegon’s joint ventures in Spain, China and Japan and Aegon’s associates in India, Brazil and Mexico are reported on an underlying earnings basis.


Unaudited		15

LOGO

3.2 Investments geographically

Amounts included in the tables on investments geographically are presented on an IFRS-basis.


									amounts in million EUR (unless otherwise stated)
Americas USD		United Kingdom GBP		June 30, 2014	Americas		The Netherlands		United Kingdom		New Markets		Holding & other activities		Eliminations			Total EUR
				Investments
	2,122		97	Shares		1,550		270		121		25		67		(1	)		2,031
	81,357		9,036	Debt securities		59,419		20,867		11,284		3,373		-		-			94,943
	10,940		-	Loans		7,990		26,134		-		487		10		-			34,622
	11,327		352	Other financial assets		8,273		320		440		36		105		-			9,173
	972		-	Investments in real estate		710		798		-		2		-		-			1,510
	106,717		9,485	Investments general account		77,941		48,389		11,844		3,923		181		(1	)		142,278
	1,779		12,683	Shares		1,300		9,070		15,838		361		-		(10	)		26,559
	6,426		9,262	Debt securities		4,694		17,959		11,566		278		-		-			34,497
	101,280		22,087	Unconsolidated investment funds		73,970		-		27,581		6,056		-		-			107,608
	381		3,368	Other financial assets		278		393		4,206		14		-		-			4,892
	-		828	Investments in real estate		-		-		1,035		-		-		-			1,035
	109,867		48,229	Investments for account of policyholders		80,242		27,422		60,226		6,710		-		(10	)		174,590

	216,584		57,714	Investments on balance sheet		158,183		75,811		72,071		10,633		181		(11	)		316,868
	167,588		331	Off balance sheet investments third parties		122,398		920		414		62,813		-		-			186,545
	384,172		58,046	Total revenue generating investments		280,582		76,730		72,485		73,446		181		(11	)		503,413

				Investments
	88,400		9,340	Available-for-sale		64,564		20,792		11,663		3,391		10		-			100,419
	10,940		-	Loans		7,990		26,134		-		487		10		-			34,622
	116,272		47,546	Financial assets at fair value through profit or loss		84,919		28,086		59,373		6,754		162		(11	)		179,284
	972		828	Investments in real estate		710		798		1,035		2		-		-			2,544
	216,584		57,714	Total investments on balance sheet		158,183		75,811		72,071		10,633		181		(11	)		316,868

	13		-	Investments in joint ventures		10		788		-		631		-		-			1,429
	121		17	Investments in associates		88		19		21		371		2		-			501
	30,078		4,150	Other assets		21,967		25,093		5,182		3,006		34,550		(32,610	)		57,189
	246,796		61,881	Consolidated total assets		180,249		101,711		77,274		14,641		34,734		(32,621	)		375,988

									amounts in million EUR (unless otherwise stated)
Americas USD		United Kingdom GBP		December 31, 2013	Americas		The Netherlands		United Kingdom		New Markets		Holding & other activities		Eliminations			Total EUR
				Investments
	2,007		46	Shares		1,456		447		55		45		36		(2	)		2,036
	78,719		8,719	Debt securities		57,125		19,095		10,479		2,812		-		-			89,511
	11,289		1	Loans		8,192		24,708		1		508		-		-			33,409
	11,418		173	Other financial assets		8,286		293		208		30		103		-			8,920
	993		-	Investments in real estate		721		810		-		1		-		-			1,532
	104,425		8,938	Investments general account		75,780		45,354		10,743		3,396		139		(2	)		135,409
	1,804		12,792	Shares		1,309		8,450		15,375		297		-		(8	)		25,423
	6,675		9,643	Debt securities		4,844		16,791		11,590		307		-		-			33,531
	94,950		21,776	Unconsolidated investment funds		68,905		-		26,173		5,744		-		-			100,822
	230		3,062	Other financial assets		167		405		3,680		9		-		-			4,261
	-		828	Investments in real estate		-		-		996		-		-		-			996
	103,659		48,101	Investments for account of policyholders		75,224		25,646		57,813		6,357		-		(8	)		165,032

	208,084		57,039	Investments on balance sheet		151,004		70,999		68,556		9,754		139		(10	)		300,441
	155,179		239	Off balance sheet investments third parties		112,611		994		287		60,951		-		-			174,843
	363,262		57,277	Total revenue generating investments		263,616		71,993		68,843		70,705		139		(10	)		475,285

				Investments
	86,347		8,892	Available-for-sale		62,661		19,452		10,687		2,827		8		-			95,635
	11,289		1	Loans		8,192		24,708		1		508		-		-			33,409
	109,455		47,318	Financial assets at fair value through profit or loss		79,430		26,029		56,872		6,418		131		(10	)		168,870
	993		828	Investments in real estate		721		810		996		1		-		-			2,528
	208,084		57,039	Total investments on balance sheet		151,004		70,999		68,556		9,754		139		(10	)		300,441

	-		-	Investments in joint ventures		-		819		-		607		-		-			1,426
	112		16	Investments in associates		81		19		20		350		1		-			470
	31,112		4,227	Other assets		22,577		17,067		5,080		2,936		29,869		(28,103	)		49,430
	239,307		61,282	Consolidated total assets		173,663		88,903		73,656		13,647		30,008		(28,113	)		351,767

4. Premium income and premium to reinsurers



EUR millions	Q2 2014	Q2 2013	YTD 2014	YTD 2013

Gross
Life	3,628	4,224	8,107	9,705
Non-Life	732	723	1,518	1,509
Total	4,360	4,947	9,625	11,214

Reinsurance
Life	675	694	1,319	1,365
Non-Life	74	92	152	182
Total	749	786	1,471	1,547


16		Unaudited

LOGO

5. Investment income



EUR millions	Q2 2014	Q2 2013	YTD 2014	YTD 2013

Interest income	1,682	1,705	3,379	3,396
Dividend income	421	314	642	606
Rental income	37	29	67	59
Total investment income	2,140	2,048	4,088	4,061

Investment income related to general account	1,406	1,413	2,801	2,797
Investment income for account of policyholders	734	635	1,287	1,264
Total	2,140	2,048	4,088	4,061

6. Results from financial transactions



EUR millions	Q2 2014		Q2 2013		YTD 2014		YTD 2013

Net fair value change of general account financial investments at FVTPL other than derivatives	92		(21	)	161		123
Realized gains and (losses) on financial investments	198		75		307		188
Gains and (losses) on investments in real estate	(9	)	(11	)	(14	)	(26	)
Net fair value change of derivatives	247		(214	)	336		(479	)
Net fair value change on for account of policyholder financial assets at FVTPL	3,921		(2,281	)	5,867		5,462
Net fair value change on investments in real estate for account of policyholders	21		(23	)	28		(33	)
Net foreign currency gains and (losses)	(18	)	2		(12	)	4
Net fair value change on borrowings and other financial liabilities	(11	)	14		(4	)	33
Realized gains and (losses) on repurchased debt	3		(1	)	3		(1	)
Total	4,444		(2,460	)	6,672		5,271

Net fair value change on for accounts of policyholder financial assets at FVTPL is offset by amounts in the Claims and benefits line reported in note 7 - Benefits and expenses.

7. Benefits and expenses



EUR millions	Q2 2014		Q2 2013		YTD 2014		YTD 2013

Claims and benefits	11,006		4,554		20,338		20,747
Employee expenses	506		528		982		1,040
Administration expenses	276		271		552		520
Deferred expenses	(339	)	(344	)	(656	)	(658	)
Amortization charges	246		293		493		534
Total	11,695		5,302		21,708		22,183

Claims and benefits includes claims and benefits in excess of account value for products for which deposit accounting is applied and the change in valuation of liabilities for insurance and investment contracts. In addition, commissions and expenses and premium paid to reinsurers are included. Claims and benefits fluctuates mainly as a result of changes in technical provisions resulting from fair value changes on for account of policyholder financial assets included in Results from financial transactions (note 6).


Unaudited		17

LOGO

8. Impairment charges/(reversals)



EUR millions	Q2 2014		Q2 2013		YTD 2014		YTD 2013

Impairment charges / (reversals) comprise:
Impairment charges on financial assets, excluding receivables ¹	28		63		49		103
Impairment reversals on financial assets, excluding receivables ¹	(23	)	(9	)	(35	)	(25	)
Impairment charges / (reversals) on non-financial assets and receivables	3		(5	)	1		(4	)
Total	8		49		16		74

Impairment charges on financial assets, excluding receivables, from:
Shares	2		-		3		-
Debt securities and money market instruments	7		50		12		63
Loans	19		13		35		40
Total	28		63		49		103

Impairment reversals on financial assets, excluding receivables, from:
Debt securities and money market instruments	(20	)	(8	)	(29	)	(22	)
Loans	(3	)	(1	)	(5	)	(3	)
Total	(23	)	(9	)	(35	)	(25	)

¹Impairment charges / (reversals) on financial assets, excluding receivables, are excluded from underlying earnings before tax for segment reporting (refer to note 3).

9. Investments



EUR millions	Jun. 30, 2014	Dec. 31, 2013

Available-for-sale (AFS)	100,419	95,635
Loans	34,622	33,409
Financial assets at fair value through profit or loss (FVTPL)	5,728	4,833
Financial assets, excluding derivatives	140,768	133,877
Investments in real estate	1,510	1,532
Total investments for general account, excluding derivatives	142,278	135,409



Total financial assets, excluding derivatives
	AFS		FVTPL		Loans		Total

Shares		672		1,359		-		2,031
Debt securities		93,073		1,870		-		94,943
Money market and other short-term investments		5,504		729		-		6,233
Mortgages loans		-		-		30,532		30,532
Private loans		-		-		1,806		1,806
Deposits with financial institutions		-		-		229		229
Policy loans		-		-		1,911		1,911
Other		1,170		1,770		143		3,083
June 30, 2014		100,419		5,728		34,622		140,768

		AFS		FVTPL		Loans		Total

Shares		787		1,250		-		2,036
Debt securities		88,162		1,350		-		89,511
Money market and other short-term investments		5,524		449		-		5,974
Mortgages loans		-		-		29,245		29,245
Private loans		-		-		1,783		1,783
Deposits with financial institutions		-		-		292		292
Policy loans		-		-		1,955		1,955
Other		1,163		1,784		135		3,082
December 31, 2013		95,635		4,833		33,409		133,877


18		Unaudited

LOGO

10. Investments for account of policyholders



EUR millions	Jun. 30, 2014	Dec. 31, 2013
Shares	26,559	25,423
Debt securities	34,497	33,531
Money market and short-term investments	959	850
Deposits with financial institutions	3,522	3,006
Unconsolidated investment funds	107,608	100,822
Other	410	404
Total investments for account of policyholders at fair value through profit or loss, excluding derivatives	173,556	164,037
Investment in real estate	1,035	996
Total investments for account of policyholders	174,590	165,032

11. Derivatives

The movements in derivative balances mainly result from changes in interest rates and other market movements during the period.

12. Fair value

The following tables provide an analysis of financial instruments recorded at fair value on a recurring basis by level of the fair value hierarchy:


Fair value hierarchy
EUR millions	Level I		Level II		Level III		Total
As at June 30, 2014

Financial assets carried at fair value
Available-for-sale investments
Shares		121		280		271		672
Debt securities		22,808		66,965		3,299		93,073
Money markets and other short-term instruments		-		5,504		-		5,504
Other investments at fair value		27		318		824		1,170
Total Available-for-sale investments		22,956		73,068		4,395		100,419

Fair value through profit or loss
Shares		1,153		207		-		1,359
Debt securities		94		1,745		30		1,870
Money markets and other short-term instruments		95		634		-		729
Other investments at fair value		1		575		1,195		1,770
Investments for account of policyholders ¹		102,852		68,757		1,947		173,556
Derivatives		12		19,626		299		19,937
Total Fair value through profit or loss		104,207		91,544		3,471		199,221
Total financial assets at fair value		127,163		164,611		7,865		299,639

Financial liabilities carried at fair value
Investment contracts for account of policyholders ²		13,528		21,004		117		34,649
Borrowings ³		509		515		-		1,024
Derivatives		31		15,588		1,913		17,532
Total financial liabilities at fair value		14,068		37,107		2,030		53,205


Unaudited		19

LOGO


Fair value hierarchy
EUR millions	Level I		Level II		Level III		Total
As at December 31, 2013

Financial assets carried at fair value
Available-for-sale investments
Shares		202		262		322		787
Debt securities		20,815		64,184		3,162		88,162
Money markets and other short-term instruments		-		5,524		-		5,524
Other investments at fair value		25		312		826		1,163
Total Available-for-sale investments		21,043		70,282		4,310		95,635

Fair value through profit or loss
Shares		1,120		130		-		1,250
Debt securities		64		1,268		17		1,350
Money markets and other short-term instruments		95		354		-		449
Other investments at fair value		-		567		1,217		1,784
Investments for account of policyholders ¹		99,040		63,008		1,989		164,037
Derivatives		69		13,134		328		13,531
Total Fair value through profit or loss		100,388		78,461		3,552		182,401
Total financial assets at fair value		121,431		148,744		7,862		278,036

Financial liabilities carried at fair value
Investment contracts for account of policyholders ²		12,872		19,641		114		32,628
Borrowings ³		517		500		-		1,017
Derivatives		24		10,383		1,431		11,838
Total financial liabilities at fair value		13,413		30,524		1,545		45,482

¹	The investments for account of policyholders included in the table above represents those investments carried at fair value through profit or loss.

²	The investment contracts for account of policyholders included in the table above represents those investment contracts carried at fair value.

³	Total borrowings on the statement of financial position contain borrowings carried at amortized cost that are not included in the above schedule.

Significant transfers between Level I, Level II and Level III

Aegon’s policy is to record transfers of assets and liabilities between Level I, Level II and Level III at their fair values as of the beginning of each reporting period.

The table below shows transfers between Level I and II for financial assets and financial liabilities recorded at fair value on a recurring basis during the six-month period ended June 30, 2014.


Fair value transfers
EUR millions	YTD 2014				Full Year 2013
	Transfers Level I to Level II		Transfers Level II to Level I		Transfers Level I to Level II		Transfers Level II to Level I
Financial assets carried at fair value available-for-sale investments
Shares		-		-		-		1
Debt securities		-		43		1		209
Total		-		43		2		210

Fair value through profit or loss
Investments for account of policyholders		-		1		-		263
Total		-		1		-		263
Total financial assets at fair value		-		43		2		473

Transfers are identified based on transaction volume and frequency, which are indicative of an active market.


20		Unaudited

LOGO

Movements in Level III financial instruments measured at fair value

The following table summarizes the change of all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level III), including realized and unrealized gains (losses) of all assets and liabilities and unrealized gains (losses) of all assets and liabilities still held at the end of the respective period.


Roll forward of Level III financial instruments
	January 1, 2014		Total gains / losses in income statement ¹			Total gains / losses in OCI ²			Purchases		Sales			Settlements			Net exchange differences		Reclassification		Transfers from Level I and Level II		Transfers to Level I and Level II			June 30, 2014		Total unrealized gains and losses for the period recorded in the P&L for instruments held at June 30, 2014 ³
Financial assets carried at fair value available-for-sale investments
Shares		322		36			(14	)		29		(101	)		-			1		-		-		(1	)		271		-
Debt securities		3,162		13			79			665		(157	)		(95	)		12		-		123		(503	)		3,299		-
Other investments at fair value		826		(51	)		(12	)		72		(29	)		(4	)		5		-		17		-			824		-
		4,310		(2	)		53			765		(287	)		(99	)		18		-		140		(503	)		4,395		-
Fair value through profit or loss
Debt securities		17		1			-			20		-			(9	)		-		-		-		-			30		2
Other investments at fair value		1,217		49			-			16		(145	)		-			8		-		64		(14	)		1,195		49
Investments for account of policyholders		1,989		45			-			224		(258	)		-			9		-		98		(161	)		1,947		42
Derivatives		328		(62	)		-			-		(14	)		-			4		44		-		-			299		(79	)
		3,552		33			-			261		(417	)		(9	)		20		44		162		(175	)		3,471		14
Financial liabilities carried at fair value
Investment contracts for account of policyholders		114		2			-			-		-			-			1		-		-		-			117		2
Derivatives		1,431		421			-			-		16			-			1		44		-		-			1,913		412
		1,545		423			-			-		16			-			2		44		-		-			2,030		414

¹ Includes impairments and movements related to fair value hedges. Gains and losses are recorded in the line item results from financial transactions of the income statement.

² Total gains and losses are recorded in line items Gains/ (losses) on revaluation of available-for-sale investments and (Gains)/ losses transferred to the income statement on disposal and impairment of available-for-sale investment of the statement of other comprehensive income.

³ Total gains / (losses) for the period during which the financial instrument was in Level III.

During the first six months of 2014, Aegon transferred certain financial instruments from Level II to Level III of the fair value hierarchy. The reason for the change in level was that the market liquidity for these securities decreased, which led to a change in market observability of prices. Prior to transfer, the fair value for the Level II securities was determined using observable market transactions or corroborated broker quotes respectively for the same or similar instruments. The amount of assets and liabilities transferred to Level III was EUR 302 million (full year 2013: EUR 785 million). Since the transfer, all such assets have been valued using valuation models incorporating significant non market-observable inputs or uncorroborated broker quotes.

Similarly, during the first six months of 2014, Aegon transferred certain financial instruments from Level III to other levels of the fair value hierarchy. The change in level was mainly the result of a return of activity in the market for these securities and that for these securities the fair value could be determined using observable market transactions or corroborated broker quotes for the same or similar instruments. Transfers from Level III amounted to EUR 678 million (full year 2013: EUR 756 million).


Unaudited		21

LOGO

The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level III financial instruments.

Overview of significant unobservable inputs

EUR millions

Carrying
amount June
30, 2014

Valuation technique ¹

Significant unobservable
input ²

Range (weighted average)

Financial assets carried at fair value available-for-
sale investments

127

Broker quote

n.a.

144

Other

n.a.

271

Debt securities

2,681

Broker quote

n.a.

130

Discounted cash flow

Discount rate

3% - 8% (6.93%)

199

Discounted cash flow

Credit spread

0.8% - 3.4% (2.44%)

291

Other

n.a.

3,299

Other investments at fair value

Tax credit investments

673

Discounted cash flow

Discount rate

8.6%

Investment funds

Net asset value

n.a.

Other

n.a.

824

June 30, 2014

4,395

Fair value through profit or loss

Debt securities

Other

n.a.

Other investments at fair value

Investment funds

1,165

Net asset value

n.a.

Other

n.a.

1,195

Derivatives ³

Longevity swap

108

Discounted cash flow

Mortality

n.a.

Other

120

Other

n.a.

228

June 30, 2014

1,453

Total financial assets at fair value ³

5,848

Financial liabilities carried at fair value

Derivatives

Embedded derivatives in insurance contracts

1,745

Discounted cash flow

Credit spread

0.3% - 0.4% (0.34%)

Other

169

Other

n.a.

Total financial liabilities at fair value

1,913

¹	Other in the table above (column Valuation technique) includes investments for which the fair value is uncorroborated and no broker quote is received.

²	Not applicable (n.a.) has been included when no significant unobservable assumption has been identified and used.

Investments for account of policyholders are excluded from the table above and from the disclosure regarding reasonably possible alternative assumptions. Policyholder assets, and their returns, belong to policyholders and do not impact Aegon’s net income or equity. The effect on total assets is offset by the effect on total liabilities. Derivatives exclude derivatives for account of policyholders amounting to EUR 71 million.

The description of Aegon’s methods of determining fair value is included in the consolidated financial statements for 2013. For reference purposes, the valuation techniques included in the table above are described in more detail on the following pages.


22		Unaudited

LOGO

Shares

When available, Aegon uses quoted market prices in active markets to determine the fair value of its investments in shares. Fair values for unquoted shares are estimated using observations of the price/earnings or price/cash flow ratios of quoted companies considered comparable to the companies being valued. Valuations are adjusted to account for company-specific issues and the lack of liquidity inherent in an unquoted investment. Adjustments for illiquidity are generally based on available market evidence. In addition, a variety of other factors are reviewed by management, including, but not limited to, current operating performance, changes in market outlook and the third-party financing environment.

Available-for-sale shares include shares in a Federal Home Loan Bank (“FHLB”) for an amount of EUR 95 million (December 31, 2013: EUR 94 million) that are measured at par, which are reported as part of Other. A FHLB has implicit financial support from the United States government. The redemption value of the shares is fixed at par and they can only be redeemed by the FHLB.

Debt securities

Debt securities are comprised of residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), asset-backed securities (ABS), corporate bonds and sovereign debt. Details on the fair value measurement for these specific types of debt securities are provided below.

Valuations of RMBS, CMBS and ABS are monitored and reviewed on a monthly basis. Valuations per asset type are based on a pricing hierarchy which uses a waterfall approach that starts with market prices from indices and follows with third-party pricing services or brokers. The pricing hierarchy is dependent on the possibilities of corroboration of the market prices. If no market prices are available, Aegon uses internal models to determine fair value. Significant inputs included in the internal models are generally determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles. Market standard models may be used to model the specific collateral composition and cash flow structure of each transaction. The most significant unobservable input is liquidity premium which is embedded in the discount rate. The weighted average liquidity premium used in valuation of ABS has increased to 6.93% (December 31, 2013: 6.62%). Broker quoted debt securities include ABS for an amount of EUR 2,261 million (December 31, 2013: EUR 2,030 million).

Valuations of corporate bonds are monitored and reviewed on a monthly basis. The pricing hierarchy is dependent on the possibility of corroboration of market prices when available. If no market prices are available, valuations are determined by a discounted cash flow methodology using an internally calculated yield. The yield is comprised of a credit spread over a given benchmark. In all cases, the benchmark is an observable input. The credit spread contains both observable and unobservable inputs. Aegon starts by taking an observable credit spread from a similar bond of the given issuer, and then adjusts this spread based on unobservable inputs. These unobservable inputs may include subordination, liquidity and maturity differences. The weighted average credit spread used in valuation of corporate bonds has increased to 2.44% (December 31, 2013: 2.33%).

When available, Aegon uses quoted market prices in active markets to determine the fair value of its sovereign debt investments. When Aegon cannot make use of quoted market prices, market prices from indices or quotes from third-party pricing services or brokers are used.

Tax credit investments

The fair value of tax credit investments is determined by using a discounted cash flow valuation technique. This valuation technique takes into consideration projections of future capital contributions and distributions, as well as future tax credits and the tax benefits of future operating losses. The present value of these cash flows is calculated by applying a discount rate. In general, the discount rate is determined based on the cash outflows for the investments and the cash inflows from the tax credits/tax benefits (and the timing of those cash flows). These inputs are unobservable in the market place. The discount rate used in valuation of tax credit investments has increased to 8.6% (December 31, 2013: 8.2%).


Unaudited		23

LOGO

Investment funds

Investment funds include real estate funds, private equity funds and hedge funds. The fair values of investments held in non-quoted investment funds are determined by management after taking into consideration information provided by the fund managers. Aegon reviews the valuations each month and performs analytical procedures and trending analyses to ensure the fair values are appropriate.

Derivatives

Where quoted market prices are not available, other valuation techniques, such as option pricing or stochastic modeling, are applied. The valuation techniques incorporate all factors that a typical market participant would consider and are based on observable market data when available. Models are validated before they are used and calibrated to ensure that outputs reflect actual experience and comparable market prices.

Fair values for exchange-traded derivatives, principally futures and certain options, are based on quoted market prices in active markets. Fair values for over-the-counter (“OTC”) derivatives represent amounts estimated to be received from or paid to a third party in settlement of these instruments. These derivatives are valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other OTC trades, or external pricing services. Most valuations are derived from swap and volatility matrices, which are constructed for applicable indices and currencies using current market data from many industry standard sources. Option pricing is based on industry standard valuation models and current market levels, where applicable. The pricing of complex or illiquid instruments is based on internal models or an independent third party. For long-dated illiquid contracts, extrapolation methods are applied to observed market data in order to estimate inputs and assumptions that are not directly observable. To value OTC derivatives, management uses observed market information, other trades in the market and dealer prices.

Some OTC derivatives are so-called longevity derivatives. The payout of longevity derivatives is linked to publicly available mortality tables. The derivatives are measured using the present value of the best estimate of expected payouts of the derivative plus a risk margin. The best estimate of expected payouts is determined using best estimate of mortality developments. Aegon determined the risk margin by stressing the best estimate mortality developments to quantify the risk and applying a cost-of-capital methodology. The most significant unobservable input for these derivatives is the (projected) mortality development.

Aegon normally mitigates counterparty credit risk in derivative contracts by entering into collateral agreements where practical and in ISDA master netting agreements for each of the Group’s legal entities to facilitate Aegon’s right to offset credit risk exposure. Changes in the fair value of derivatives attributable to changes in counterparty credit risk were not significant.

Embedded derivatives in insurance contracts including guarantees

All bifurcated guarantees for minimum benefits in insurance and investment contracts are carried at fair value. These guarantees include guaranteed minimum withdrawal benefits (GMWB) in the United States, United Kingdom and Japan which are offered on some variable annuity products and are also assumed from a ceding company; minimum investment return guarantees at end dates that are offered on universal life products sold in the Netherlands; and guaranteed minimum accumulation benefits on segregated funds sold in Canada.

Since the price of these guarantees is not quoted in any market, the fair values of these guarantees are calculated as the present value of future expected payments to policyholders less the present value of assessed rider fees attributable to the guarantees. Given the complexity and long-term nature of these guarantees which are unlike instruments available in financial markets, their fair values are determined by using stochastic techniques under a variety of market return scenarios. A variety of factors are considered including credit spread, expected market rates of return, equity and interest rate volatility, correlations of market returns, discount rates and actuarial assumptions. The most significant unobservable factor is credit spread. The credit spread used in the valuations of embedded derivatives in insurance contracts decreased to 0.34% (December 31, 2013: 0.47%).


24		Unaudited

LOGO

The expected returns are based on risk-free rates. Aegon added a premium to reflect the credit spread as required. The credit spread is set by using the credit default swap (CDS) spreads of a reference portfolio of life insurance companies (including Aegon), adjusted to reflect the subordination of senior debt holders at the holding company level to the position of policyholders at the operating company level (who have priority in payments to other creditors). Aegon’s assumptions are set by region to reflect differences in the valuation of the guarantee embedded in the insurance contracts.

Since many of the assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level III of the fair value hierarchy.

Effect of reasonably possible alternative assumptions

The effect of changes in unobservable inputs on fair value measurement as reported in the 2013 consolidated financial statements of Aegon has not changed significantly as per June 30, 2014.

Fair value information about financial instruments not measured at fair value

The following table presents the carrying values and estimated fair values of financial assets and liabilities, excluding financial instruments which are carried at fair value on a recurring basis.


Fair value information about financial instruments not measured at fair value
EUR millions	Carrying amount June 30, 2014		Total estimated fair value June 30, 2014		Carrying amount December 31, 2013		Total estimated fair value December 31, 2013

Assets
Mortgage loans - held at amortized cost		30,532		35,899		29,245		32,869
Private loans - held at amortized cost		1,806		2,031		1,783		1,888
Other loans - held at amortized cost		2,283		2,283		2,381		2,381

Liabilities
Trust pass-through securities - held at amortized cost		125		125		135		122
Subordinated borrowings - held at amortized cost		739		807		44		73
Borrowings – held at amortized cost		12,417		12,758		11,003		11,291
Investment contracts - held at amortized cost		13,522		13,862		14,079		14,387

Financial instruments for which carrying value approximates fair value

Certain financial instruments that are not carried at fair value are carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and cash equivalents, short-term receivables and accrued interest receivable, short-term liabilities, and accrued liabilities. These instruments are not included in the table above.

13. Deferred expenses



EUR millions	Jun. 30, 2014	Dec. 31, 2013

DPAC for insurance contracts and investment contracts with discretionary participation features	9,161	9,229
Deferred cost of reinsurance	404	421
Deferred transaction costs for investment management services	365	356
Total deferred expenses	9,931	10,006


Unaudited		25

LOGO

14. Share capital



EUR millions	Jun. 30, 2014		Dec. 31, 2013

Share capital - par value	327		325
Share premium	8,374		8,375
Total share capital	8,701		8,701

Share capital - par value
Balance at January 1	325		319
Issuance	-		84
Withdrawal	-		(82	)
Share dividend	2		5
Balance	327		325

Share premium
Balance at January 1	8,375		8,780
Withdrawal	-		(400	)
Share dividend	(2	)	(5	)
Balance	8,374		8,375

Basic and diluted earnings per share



EUR millions	Q2 2014		Q2 2013		YTD 2014		YTD 2013

Earnings per share (EUR per share)
Basic earnings per common share	0.15		0.07		0.31		0.16
Basic earnings per common share B	-		-		0.01		-
Diluted earnings per common share	0.15		0.07		0.31		0.16
Diluted earnings per common share B	-		-		0.01		-

Earnings per share calculation
Net income attributable to equity holders of Aegon N.V.	343		239		735		463
Preferred dividend	-		(83	)	-		(83	)
Coupons on other equity instruments	(37	)	(20	)	(83	)	(69	)
Earnings attributable to common shares and common shares B	306		136		652		311

Earnings attributable to common shareholders	304		135		647		310
Earnings attributable to common shareholders B	2		1		4		1

Weighted average number of common shares outstanding (in million)	2,093		2,013		2,092		1,978
Weighted average number of common shares B outstanding (in million)	580		299		579		150

Diluted earnings per share is calculated by adjusting the average number of shares outstanding for share options. During the six months ended June 30, 2014, and during 2013, the average share price did not exceed the exercise price of these options. As a result, diluted earnings per share do not differ from basic earnings per share.

Dividend

The Annual General Meeting of Shareholders on May 21, 2014, approved a final dividend over 2013 payable in either cash or stock related to the second half of 2013, paid in the first half of 2014. The cash dividend amounted to EUR 0.11 per common share, the stock dividend amounted to one new Aegon common share for every 59 common shares held. The stock dividend and cash dividend are approximately equal in value. Dividend paid on common shares B amounted to 1/40th of the dividend paid on common shares. Approximately 40% of shareholders elected to receive the stock dividend. The remaining 60% opted for cash dividend. To neutralize the dilutive effect of the 2013 final dividend paid in shares, Aegon executed a program to repurchase 14,488,648 common shares. Between June 20, 2014, and July 17, 2014, these common shares were repurchased at an average price of EUR 6.4300 per share.

At June 30, 2014, Aegon had repurchased 5,969,584 common shares at an average price of EUR 6.4474. The liability for the repurchase of the remaining 8,519,064 shares, valued at the closing share price of EUR 6.3740 at June 30, 2014, amounted to EUR 54 million.


26		Unaudited

LOGO

15. Other equity instruments

On June 15, 2014, Aegon redeemed junior perpetual capital securities with a coupon of 7.25% issued in 2007. The junior perpetual capital securities were originally issued at par with a carrying value of EUR 745 million. The principal amount of USD 1,050 million (EUR 774 million) was repaid with accrued interest. The cumulative foreign currency result at redemption was recorded directly in retained earnings.

On March 15, 2014, Aegon redeemed junior perpetual capital securities with a coupon of 6.875% issued in 2006. The junior perpetual capital securities were originally issued at par with a carrying value of EUR 438 million. The principal amount of USD 550 million (EUR 396 million) was repaid with accrued interest. The cumulative foreign currency result at redemption was recorded directly in retained earnings.

16. Subordinated borrowings

On April 25, 2014, Aegon issued EUR 700 million of subordinated notes, first callable on April 25, 2024 and maturing on April 25, 2044. The coupon is fixed at 4% until the first call date and floating thereafter.

17. Borrowings



EUR millions	Jun. 30, 2014		Dec. 31, 2013

Debentures and other loans		12,983		11,830
Commercial paper		150		135
Short-term deposits		12		16
Bank overdrafts		296		39
Total borrowings		13,441		12,020

Debentures and other loans

Included in Debentures and other loans is EUR 1,024 million relating to borrowings measured at fair value (2013: EUR 1,017 million).

On March 13, 2014, Aegon executed a transaction under the Dutch SAECURE program to sell Class A mortgage backed securities (RMBS) amounting to EUR 1.4 billion. “SAECURE 14 NHG” consists of 2 tranches:

EUR 343 million of class A1 notes with an expected weighted average life of 2 years and priced with a coupon of three month Euribor plus 0.40%; and

EUR 1,024 million of class A2 notes with an expected weighted average life of 5 years and priced with a coupon of three month Euribor plus 0.72%.

Commercial paper, Short-term deposits and Bank overdrafts vary with the normal course of business.


Unaudited		27

LOGO

18. Commitments and contingencies

In June, 2013, the Dutch Supreme Court denied Aegon’s appeal from a ruling of the Court of Appeal with respect to a specific Aegon unit-linked product, the “KoersPlan” product. As a result of the Dutch Supreme Court’s denial of appeal, Aegon compensated the approximately 35,000 holders of KoersPlan products who were plaintiffs in the litigation. Aegon has issued, sold or advised on approximately 600,000 KoersPlan products. In June 2014, Aegon announced that it would also compensate holders of KoersPlan-products that were not plaintiffs in the litigation. The compensation equals the excess, if any, of the premium actually charged by Aegon over the amount of premium charged by Aegon for stand-alone death benefit coverage for a comparable risk over the same period. The costs of this product improvement will be covered by existing provisions.

In March 2014, consumer interest group Vereniging Woekerpolis.nl filed a new claim against Aegon in court. The claim relates to a range of unit-linked products of Aegon, challenging a variety of elements of these products on multiple legal grounds. At this time it is not practicable for Aegon to quantify a range or maximum liability, if any.

Optas

Aegon and BPVH – a foundation representing Dutch harbor workers and employers – have reached an agreement on removing restrictions on the capital of the harbor workers’ former pension fund Optas. This agreement, announced on April 14, 2014, ends a dispute that began when the Optas pension fund was transformed into an insurance company that was subsequently acquired by Aegon in 2007.

In August Aegon expects to, jointly with BPVH, file a request with the Dutch court to remove the restriction on the capital of Optas. Upon the court granting this request, Aegon will make a payment of EUR 80 million to BPVH, as well as offering harbor workers more favorable pension terms. In addition, over the coming years Aegon will contribute up to EUR 20 million to help mitigate the effect of an announced reduction in the tax-free pension allowance in the Netherlands.

No amounts in respect of this agreement have been recognized in these condensed consolidated interim financial statements because the outcome of the request to the court to remove the restriction is uncertain.

There have been no other material changes in contingent assets and liabilities as reported in the 2013 consolidated financial statements of Aegon.

19. Acquisitions / divestments

There were no significant acquisitions or divestments during the six months ended June 30, 2014.

20. Events after the balance sheet date

On July 30, 2014, Aegon signed a new 25-year agreement to distribute both protection and general insurance products through Banco Santander’s approximately 600 branches in Portugal. Under the terms of the agreement, Aegon will acquire a 51% stake in Banco Santander’s Portuguese insurance activities. The transaction is subject to regulatory approval and expected to close in the fourth quarter of 2014.


28		Unaudited

LOGO

Management Statement

The interim report for the six months ended June 30, 2014, consists of the Condensed Consolidated

Interim Financial Statements, the Q2 2014 results release and the responsibility statement by the Company’s Executive Board. The information in this interim report is unaudited.

The Executive Board is responsible for preparing the Condensed Consolidated Interim Financial Statements in accordance with Dutch law and IAS 34, Interim Financial Reporting, as adopted by the European Union.

The Executive Board declares that, to the best of its knowledge, the Condensed Consolidated Interim Financial Statements which have been prepared in accordance with lAS 34, “Interim Financial Reporting”, as adopted by the European Union, give a true and fair view of the assets, liabilities, financial condition and profit or loss of Aegon N.V. and the undertakings included in the consolidation as a whole and that the Q2 2014 results release includes a fair review of the information required pursuant to section 5:2Sd, subsections 8 and 9 of the Dutch Act on Financial Supervision (Wet op het financieel toezicht).

The Hague, August 13, 2014

A.R. Wynaendts

Chairman of the Executive Board and CEO

D.D. Button

Member of the Executive Board and CFO


Unaudited		29

LOGO

To: The Supervisory Board and the Executive Board of Aegon N.V.

Review report

Introduction

We have reviewed the accompanying condensed consolidated interim financial statements for the six-month period ended June 30, 2014 of Aegon N.V., The Hague, as set out on pages 2 to 29, which comprises the condensed consolidated statement of financial position as at June 30, 2014, the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of changes in equity, the condensed consolidated cash flow statement and the notes to the condensed consolidated interim financial statements for the six-month period then ended. We have not reviewed the condensed consolidated income statement, the condensed consolidated statement of comprehensive income and the condensed consolidated statement of changes in equity for the three-month period ended as at June 30, 2014. Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with IAS 34, ‘Interim Financial Reporting’ as adopted by the European Union. Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

Scope

We conducted our review in accordance with Dutch law including standard 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Dutch auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements as at and for the six-month period ended June 30, 2014 are not prepared, in all material respects, in accordance with IAS 34, ‘Interim Financial Reporting’ as adopted by the European Union.

Amsterdam, August 13, 2014

PricewaterhouseCoopers Accountants N.V.

Original has been signed by

drs. R. Dekkers RA


30		Unaudited

LOGO

Disclaimers

Cautionary note regarding non-IFRS measures

This document includes the following non-IFRS financial measures: underlying earnings before tax, income tax and income before tax. These non-IFRS measures are calculated by consolidating on a proportionate basis Aegon’s joint ventures and associated companies. The reconciliation of these measures to the most comparable IFRS measure is provided in note 3 ‘Segment information’ of Aegon’s Condensed Consolidated Interim Financial Statements. Aegon believes that these non-IFRS measures, together with the IFRS information, provide meaningful information about the underlying operating results of Aegon’s business including insight into the financial measures that senior management uses in managing the business.

Local currencies and constant currency exchange rates

This document contains certain information about Aegon’s results and financial condition presented in USD for the Americas and GBP for the United Kingdom, because those businesses operate and are managed primarily in those currencies. None of this information is a substitute for or superior to financial information about Aegon presented in EUR, which is the currency of Aegon’s 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 Aegon’s 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 Aegon’s investment portfolio and decline in ratings of Aegon’s counterparties;

Consequences of a potential (partial) break-up of the euro or the potential independence of Scotland from the United Kingdom;

The frequency and severity of insured loss events;

Changes affecting longevity, mortality, morbidity, persistence and other factors that may impact the profitability of Aegon’s 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 Aegon’s operations, ability to hire and retain key personnel, the products Aegon sells, and the attractiveness of certain products to its consumers;

Regulatory changes relating to the insurance industry in the jurisdictions in which Aegon operates;

Changes in customer behavior and public opinion in general related to, among other things, the type of products also Aegon sells, including legal, regulatory or commercial necessity to meet changing customer expectations;

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 Aegon’s debt ratings issued by recognized rating organizations and the adverse impact such action may have on Aegon’s ability to raise capital and on its liquidity and financial condition;

Lowering of one or more of insurer financial strength ratings of Aegon’s insurance subsidiaries and the adverse impact such action may have on the premium writings, policy retention, profitability and liquidity of its insurance subsidiaries;

The effect of the European Union’s 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 Aegon does business;

As Aegon’s operations support complex transactions and are highly dependent on the proper functioning of information technology, a computer system failure or security breach may disrupt Aegon’s 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 Aegon’s products;

Changes in accounting regulations and policies or a change by Aegon in applying such regulations and policies, voluntarily or otherwise, may affect Aegon’s reported results and shareholders’ equity;

The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Aegon’s 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 Aegon’s business; and

Aegon’s failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving and excess capital and leverage ratio management initiatives.

Further details of potential risks and uncertainties affecting Aegon are described in its filings with the Netherlands Authority for the Financial Markets 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, Aegon 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 Aegon’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.


Unaudited		31

LOGO

Corporate and shareholder information


Headquarters
Aegon N.V.

P.O. Box 85

2501 CB The Hague

The Netherlands

Telephone		+ 31 (0) 70 344 32 10

aegon.com

Group Corporate Communications & Investor Relations


Media relations

Telephone		+ 31 (0) 70 344 89 56

E-mail		gcc@aegon.com

Investor relations

Telephone		+ 31 (0) 70 344 83 05

or		877 548 96 68 - toll free, USA only

E-mail		ir@aegon.com

Publication dates quarterly results 2014 and 2015



November 13, 2014		Results third quarter 2014

February 19, 2015		Results fourth quarter 2014

May 13, 2015		Results first quarter 2015

August 13, 2015		Results second quarter 2015

November 12, 2015		Results third quarter 2015

Aegon’s Q2 2014 press release and Financial Supplement are available on aegon.com.

About Aegon

Aegon’s roots go back more than 150 years – to the first half of the nineteenth century. Since then, Aegon has grown into an international company, with businesses in more than 25 countries in the Americas, Europe and Asia. Today, Aegon is one of the world’s leading financial services organizations, providing life insurance, pensions and asset management. Aegon’s purpose is to help people take responsibility for their financial future. More information: aegon.com.

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents