Q1 2011 RESULTS MAY 12, 2011 AEGON annunces Q1 2011 net incme f EUR 327 millin Underlying earnings grwth in Americas and New Markets ffset by declines in UK and Netherlands Underlying earnings befre tax f EUR 414 millin; strng earnings frm US pensins and variable annuities ffset by exceptinal charges in the UK (EUR 24 millin) and higher prvisining fr lngevity in the Netherlands (EUR 24 millin) Net incme f EUR 327 millin, supprted by lwer impairments (EUR 62 millin) and higher earnings frm run-ff businesses (EUR 22 millin) RE declines t 7.8% as a result f lwer net underlying earnings and higher average sharehlders equity Sales grwth in fee-based businesses key area f fcus Ttal sales * f EUR 1,411 millin New life sales ttal EUR 501 millin; higher sales in New Markets and the Netherlands ffset by the UK Grss depsits ttal EUR 7.4 billin, supprted by strng US sales f pensins and variable annuities cnsistent with strategy t increase fee-based business Cntinued strng capital psitin and cash flws Excess capital ** ttaled EUR 3.7 billin, f which EUR 1.3 billin at the hlding after repurchase f cnvertible cre capital securities frm Dutch State and equity issuance IGD a) slvency rati f 209% Operatinal free cash flw f EUR 264 millin Statement f Alex Wynaendts, CEO We made slid prgress n AEGON s strategic bjectives during the quarter, which include the repurchase f EUR 750 millin f cre capital securities frm the Dutch State in March. The recently annunced divestment f AEGON s life reinsurance business further supprts ur aim t cmplete the repurchase f all remaining securities by the end f June. With these key achievements alng with the ther actins we have taken in recent years t ptimize ur prtfli f businesses we have established a new basis frm which t pursue AEGON s ambitins. During the first quarter, AEGON s businesses in the United States cntinued t shw strng results, bth in terms f earnings as well as sales. The strng sales f pensins and variable annuities clearly supprt ur strategic shift t mre fee-generating business. In the Netherlands, we have been bserving a strng increase in life expectancy and are taking a prudent apprach by nw increasing ur prvisining which will have an impact n the earnings f ur Dutch business ging frward. In the United Kingdm, we are cnfident that ur new CEO and management team will fully deliver n ur plans. We were particularly pleased by the strng new life sales achieved by AEGON s newer businesses in Central & Eastern Eurpe and Asia. Over time, these key grwth regins, in additin t Latin America, will enable us t achieve a brader gegraphical balance given the substantial pprtunity they present. KEY PERFORMANCE INDICATORS amunts in EUR millins b) Ntes Q1 2011 Q4 2010 % Q1 2010 % Underlying earnings befre tax 1 414 452 (8) 446 (7) Net incme 2 327 318 3 372 (12) Sales 3 1,411 1,506 (6) 1,442 (2) Value f new business (VNB) 4 118 129 (9) 138 (14) Return n equity 5 7.8% 8.7% (10) 8.9% (12) Fr ntes see page 20. * T reflect all f AEGON s sales in ne sales indicatr, AEGON intrduced a cmpsite sales number cnsisting f new life sales, new premium prductin f bth accident & health insurance and general insurance and 1/10 f grss depsits. ** Excess capital abve AA capital adequacy requirements. Nte: The cmparative 2010 underlying earnings and sales infrmatin has been revised t reflect the transfer f life reinsurance and BOLI/COLI businesses t the run-ff businesses line t make the infrmatin cnsistent with current perid figures. Supplements: Financial Supplement and Cndensed Cnslidated Interim Financial Statements Q1 available n www.aegn.cm Page 1 f 22
STRATEGIC HIGHLIGHTS Annuncement f divestment f Transamerica Reinsurance fr a ttal cnsideratin f USD 1.4 billin Equity issuance f EUR 903 millin Repurchase f EUR 750 millin cnvertible cre capital securities frm the Dutch State Fully hedged US GMIB back-bk and further reduced expsure t peripheral Eurpean svereign bnds Restructuring in the UK n track; appintment f Adrian Grace as CEO f AEGON UK Sustainable earnings grwth with an imprved risk-return prfile AEGON is well n track with the prcess f transfrming its businesses and peratins aimed at delivering sustainable earnings grwth with an imprved risk-return prfile. AEGON has annunced specific targets which reflect the cmpany's pursuit f these bjectives: - Grw underlying earnings befre tax n average by 7%-10% per annum; - Achieve a return n equity f 10%-12% in the medium term; - Increase fee businesses t 30%-35% f underlying earnings befre tax by 2015; - Increase nrmalized perating free cash flw frm a level f EUR 1.0-1.2 billin by 30% by 2015; - Intentin t resume dividend payments with EUR 0.10 per cmmn share related t H2 2011 in May 2012. AEGON s ambitin AEGON s ambitin is t becme a leader in all its chsen markets by 2015. This means becming the mst recmmended life and pensins prvider amng custmers, the preferred partner amng distributrs and the emplyer f chice amng bth current and prspective emplyees. AEGON s AMBITION T be a leader in all ur chsen markets by 2015 AEGON S STRATEGIC PRIORITIES Reallcate capital Increase returns Achieving this ambitin is based n three strategic pririties: t reallcate capital t areas that ffer strng grwth prspects and higher returns, t increase returns frm the cmpany s existing businesses and t ptimize ONE AEGON by increasing efficiency and making better use f the cmpany s glbal resurces. Reallcate capital AEGON has taken steps t sharpen its fcus n the cmpany s three cre businesses: life insurance, pensins and asset management. The cmpany als intends t achieve a greater gegraphical balance by reallcating capital t the grwth markets f Central & Eastern Eurpe, Asia and Latin America. As part f this apprach, AEGON has assessed its businesses t ensure they meet the cmpany s requirements in terms f earnings grwth, cash flw generatin, return n capital and custmer life-cycle needs. As further evidence f this fcus, AEGON has recently annunced the divestment f its life reinsurance business, Transamerica Reinsurance, fr a ttal aftertax cnsideratin f USD 1.4 billin. AEGON expects t upstream USD 1.1 billin t the hlding cmpany t supprt the repurchase f the remaining cnvertible cre capital securities issued t the Dutch State. AEGON aims t fully repurchase these securities by the end f June 2011. In additin t reallcating its capital t thse regins that ffer higher grwth and returns, AEGON is als shifting its fcus frm the sale f spread-based prducts t fee-based prducts. This is evidenced by the strng increase in sales f variable annuity and pensin prducts in the United States. Optimize ONE AEGON resulting in sustainable, prfitable grwth. Page 2 f 22
Imprve risk prfile As previusly annunced, AEGON has taken steps t equity hedge its Guaranteed Minimum Incme Benefit (GMIB) back-bk f variable annuities in the United States. AEGON has nw fully cvered the equity expsure related t this back-bk f GMIB variable annuity guarantees. In rder t imprve the risk-return prfile f stable value slutins, AEGON s synthetic guaranteed investment cntracts business in the United States, a number f cntracts have been terminated r cntract terms have been tightened fr remaining cntracts. Fees have been increased t 20 basis pints n average frm 15 basis pints previusly. During the first quarter, AEGON further reduced its already limited expsure t peripheral Eurpean svereign bnds, based n fair value, t EUR 1 billin r 0.7% f its general accunt investments. In the United Kingdm, AEGON is taking significant steps t imprve its return n capital. AEGON is implementing a brad restructuring prgram t reduce cst by 25% in its life and pensins peratins by the end f 2011. The restructuring prgram is n track. As part f this prcess, AEGON has appinted new senir management in the past 18 mnths. Mst recently, Adrian Grace was appinted CEO f AEGON UK. Optimize ONE AEGON Over the past three years, measures have been taken t manage AEGON mre as an internatinal cmpany. AEGON is cmmitted t making better use f its glbal resurces in managing its businesses and will cntinue t standardize best practices acrss the cmpany. Increase returns AEGON s aim is t increase returns in all f its businesses by increasing efficiency and delivering peratinal excellence. This will be achieved by further reducing csts while investing in cre cmpetences and imprving service levels t ensure cntinued custmer lyalty. Page 3 f 22
FINANCIAL OVERVIEW c) EUR millins Ntes Q1 2011 Q4 2010 % Q1 2010 % Underlying earnings befre tax Americas 347 369 (6) 337 3 The Netherlands 81 87 (7) 104 (22) United Kingdm 12 (6) - 28 (57) New markets 57 59 (3) 46 24 Hlding and ther (83) (57) (46) (69) (20) Underlying earnings befre tax 414 452 (8) 446 (7) Fair value items (85) 30 - (16) - Realized gains / (lsses) n investments 91 255 (64) 126 (28) Impairment charges (62) (133) 53 (150) 59 Other incme / (charges) (3) (258) 99 23 - Run-ff businesses 22 9 144 (18) - Incme befre tax 377 355 6 411 (8) Incme tax (50) (37) (35) (39) (28) Net incme 327 318 3 372 (12) Net incme / (lss) attributable t: Equity hlders f AEGON N.V. 327 318 3 371 (12) Nn-cntrlling interests - - - 1 - Net underlying earnings 333 348 (4) 345 (3) Cmmissins and expenses 1,513 1,659 (9) 1,586 (5) f which perating expenses 11 837 909 (8) 812 3 New life sales Life single premiums 1,726 2,002 (14) 1,919 (10) Life recurring premiums annualized 328 330 (1) 311 5 Ttal recurring plus 1/10 single 501 530 (5) 503 - New life sales Americas 12 113 118 (4) 110 3 The Netherlands 65 113 (42) 62 5 United Kingdm 247 224 10 265 (7) New markets 12 76 75 1 66 15 Ttal recurring plus 1/10 single 501 530 (5) 503 - New premium prductin accident and health insurance 159 180 (12) 148 7 New premium prductin general insurance 13 15 (13) 14 (7) Grss depsits (n and ff balance) Americas 12 5,629 5,757 (2) 5,402 4 The Netherlands 462 490 (6) 743 (38) United Kingdm 19 25 (24) 36 (47) New markets 12 1,267 1,541 (18) 1,593 (20) Ttal grss depsits 7,377 7,813 (6) 7,774 (5) Net depsits (n and ff balance) Americas 12 (233) (566) 59 535 - The Netherlands (115) (260) 56 67 - United Kingdm 2 12 (83) 29 (93) New markets 12 (1,719) 304-121 - Ttal net depsits excluding run-ff businesses (2,065) (510) - 752 - Run-ff businesses (880) (1,436) 39 (2,210) 60 Ttal net depsits (2,945) (1,946) (51) (1,458) (102) REVENUE-GENERATING INVESTMENTS Mar. 31, Dec. 31, 2011 2010 % Revenue-generating investments (ttal) 399,882 413,191 (3) Investments general accunt 136,991 143,188 (4) Investments fr accunt f plicyhlders 144,296 146,237 (1) Off balance sheet investments third parties 118,595 123,766 (4) Page 4 f 22
OPERATIONAL HIGHLIGHTS Underlying earnings befre tax AEGON s underlying earnings befre tax amunted t EUR 414 millin in the first quarter, a 7% decline cmpared with the same quarter last year. Higher funding csts and increased expenses related t the preparatin fr implementatin f Slvency II resulted in increased csts fr the hlding cmpany in the first quarter f 2011. Underlying earnings frm the Americas represent the results f nging businesses. As previusly annunced, earnings frm the BOLI/COLI and life reinsurance businesses are reprted in the run-ff line f business frm the first quarter f 2011. All cmparative numbers have been adjusted accrdingly. On this new basis, underlying earnings frm the Americas increased 3% cmpared with the first quarter f 2010 t EUR 347 millin fr the first quarter 2011. Higher fee incme related t grwth in pensin, variable annuity and retail mutual fund accunt balances mre than ffset lwer spread incme. This was cnsistent with AEGON s strategy t increase earnings frm its fee businesses. Net incme Net incme amunted t EUR 327 millin, supprted by lwer impairments and higher earnings frm runff businesses. Higher net incme fr the Americas, the United Kingdm and New Markets was mre than ffset by lwer net incme fr the Netherlands. Fair value items In the first quarter, fair value items recrded a lss f EUR 85 millin. A cnsiderable imprvement in the Americas, attributable mainly t strng results frm real estate and private equity investments, was mre than ffset by an exceptinal lss n strategic allcatin funds in the Netherlands. In the Netherlands, underlying earnings decreased t EUR 81 millin as a result f an increased level f prvisining fr lngevity, as previusly indicated. Updated prjected mrtality tables shw a strng increase in life expectancy in the Dutch ppulatin. IFRS prvisining is based n yearly bserved mrtality tables and is taken thrugh underlying earnings, in line with ur accunting methdlgy.. Based n this actual experience, the cmpany takes a measured apprach tward prvisining by assuming a cntinuatin f the emerging trend f strng imprvements in bserved mrtality fr 2010. AEGON expects t add n average EUR 20 millin per quarter t the prvisin, in additin t 2010 levels f prvisining. In the United Kingdm, underlying earnings declined t EUR 12 millin. The decrease was due t charges f EUR 24 millin mainly related t an nging prgram t crrect histrical issues within custmer plicy recrds. Underlying earnings frm New Markets increased t EUR 57 millin driven by Variable Annuities Eurpe and AEGON Asset Management. Realized gains n investments Realized gains n investments amunted t EUR 91 millin fr the quarter and were mstly the result f nrmal trading in the investment prtfli. Impairment charges Impairment charges, net f EUR 26 millin in recveries, declined sharply t EUR 62 millin and were mstly linked t residential mrtgage-backed securities. Other charges Other charges ttaled EUR 3 millin. A benefit f EUR 37 millin related t a settlement f legal claims was mre than ffset by a EUR 20 millin charge related t the full year Hungarian bank tax and restructuring charges in the Netherlands (EUR 8 millin), the United Kingdm (EUR 8 millin) and New Markets (EUR 6 millin). Run-ff businesses As f the first quarter f 2011, AEGON s run-ff line f business in the Americas cmprises the institutinal spread-based business, structured settlement pay-ut annuities, BOLI/COLI and life reinsurance. The latter Page 5 f 22
tw have been included fr the first time this quarter. The results f the cmbined run-ff businesses increased t EUR 22 millin, mainly as a result f a lwer amrtizatin yield paid n internally transferred assets related t the institutinal spread-based business and favrable mrtality results in the pay-ut annuities blck f business. Incme tax Tax charges fr the quarter amunted t EUR 50 millin. These charges included EUR 17 millin in tax benefits related t crss-brder intercmpany reinsurance transactins and a tax credit f EUR 23 millin driven by the reductin f the UK crprate tax rate t 26% effective frm April 1, 2011, with cnsequential impact n deferred taxes. Operating expenses Operating expenses increased 3% t EUR 837 millin. The increase was driven by higher restructuring charges and the unfavrable effects f mvements in currency exchange rates. Excluding restructuring charges and at cnstant currencies, perating expenses decreased 1%. Value f new business Cmpared with the first quarter f 2010, the value f new business declined cnsiderably t EUR 118 millin, mainly a result f lwer margins n mrtgages and updated mrtality assumptins in the Netherlands. Revenue-generating investments Revenue-generating investments were 3% lwer cmpared with the end f the furth quarter f 2010 at EUR 400 billin, primarily a result f the weakening f the US dllar against the eur. Capital management At the end f the first quarter, AEGON s cre capital psitin, excluding revaluatin reserves, amunted t EUR 17.0 billin, equivalent t 75% 6 f the cmpany s ttal capital base. The repurchase f cnvertible cre capital securities frm the Dutch State fr an amunt f EUR 750 millin - plus a premium f EUR 375 millin - was partly ffset by an equity issue f EUR 0.9 billin. AEGON has annunced its aim t achieve the prprtin f cre capital t be at least 75% f ttal capital by the end f 2012. Sales and depsits In rder t prvide a mre accurate view f verall sales generated by its businesses, AEGON has intrduced a cmpsite sales number cnsisting f new life sales, new premium prductin f bth accident & health insurance and general insurance and 1/10 f grss depsits. Accrding t this indicatr, sales decreased marginally by 2% t EUR 1.4 billin as a result f lwer asset management depsits. New life sales fr the first quarter f 2011 increased in all units except the United Kingdm and amunted t EUR 501 millin. Grss depsits amunted t EUR 7.4 billin. Grwth in US pensin and variable annuity depsits was ffset by lwer asset management depsits and lwer savings depsits in the Netherlands. The revaluatin reserves at March 31, 2011 ttaled EUR 0.7 billin, as an increase in risk-free interest rates had a negative impact n the value f fixed incme securities. Sharehlders equity declined cmpared with yearend 2010 t EUR 16.9 billin mainly as a result f weakening f the US dllar against the eur. During the first quarter, excess capital amunted t EUR 3.7 billin. Excess capital in the hlding decreased t EUR 1.3 billin as a result f a EUR 1.125 billin payment t the Dutch State nly partly ffset by the prceeds f a EUR 0.9 billin equity issue. Excess capital in subsidiaries increased t EUR 2.4 billin as a result f capital generated in the peratins. On March 31, 2011, AEGON s Insurance Grup Directive (IGD) rati amunted t 209%. Page 6 f 22
Cash flws AEGON aims t deliver sustainable cash flws and dividends and has annunced its intentin t imprve peratinal free cash flw frm its current nrmalized level f EUR 1.0-1.2 billin per annum by 30% by 2015. AEGON intends t resume dividend payments n cmmn shares after full repurchase f the cnvertible cre capital securities frm the Dutch State. AEGON intends t pay a dividend f EUR 0.10 per share, payable in May 2012, ver the secnd half f 2011, market cnditins permitting. During the first quarter f 2011, AEGON s subsidiaries generated EUR 539 millin in peratinal cash flws. After deductin f EUR 275 millin fr investments in new business, peratinal free cash flw ttaled EUR 264 millin fr the quarter. Page 7 f 22
APPENDIX I Americas The Netherlands United Kingdm New Markets AMERICAS c) USD millins Ntes Q1 2011 Q4 2010 % Q1 2010 % Underlying earnings befre tax by line f business Life and prtectin 195 242 (19) 194 1 Fixed annuities 90 81 11 121 (26) Variable annuities 93 68 37 69 35 Retail mutual funds 6 6 - - - Individual savings and retirement prducts 189 155 22 190 (1) Emplyer slutins & pensins 81 80 1 69 17 Canada 11 15 (27) 11 - Latin America (2) 2-1 - Underlying earnings befre tax 474 494 (4) 465 2 Fair value items (17) 10 - (120) 86 Realized gains / (lsses) n investments 35 327 (89) 33 6 Impairment charges (80) (131) 39 (191) 58 Other incme / (charges) - (264) - - - Run- ff businesses 30 11 173 (24) - Incme befre tax 442 447 (1) 163 17 1 Incme tax (83) (53) (57) 54 - Net incme 359 394 (9) 217 65 Net incme / (lss) attributable t: Equity hlders f AEGON N.V. 359 394 (9) 217 65 Net underlying earnings 346 361 (4) 358 (3) Cmmissins and expenses 1,209 1,333 (9) 1,355 (11) f which perating expenses 492 514 (4) 501 (2) New life sales 12 Life single premiums 147 194 (24) 179 (18) Life recurring premiums annualized 139 139-136 2 Ttal recurring plus 1/10 single 154 158 (3) 154 - Life & prtectin 121 129 (6) 121 - Emplyer slutins & pensins 6 5 20 8 (25) Canada 17 14 21 15 13 Latin America 10 10-10 - Ttal recurring plus 1/10 single 154 158 (3) 154 - New premium prductin accident and health insurance 199 230 (13) 184 8 Grss depsits (n and ff balance) by line f business 12 Life & prtectin 3 2 50 3 - Fixed annuities 83 112 (26) 185 (55) Variable annuities 1,179 1,037 14 809 46 Retail mutual funds 775 692 12 976 (21) Individual savings & retirement prducts 2,037 1,841 11 1,970 3 Emplyer slutins & pensins 5,554 5,744 (3) 5,217 6 Canada 97 102 (5) 286 (66) Ttal grss depsits 7,691 7,689-7,476 3 Net depsits (n and ff balance) by line f business 12 Life & prtectin (14) (14) - (15) 7 Fixed annuities (801) (660) (21) (543) (48) Variable annuities 220 158 39 (23) - Retail mutual funds (50) (37) (35) 418 - Individual savings & retirement prducts (631) (539) (17) (148) - Emplyer slutins & pensins 485 (28) - 1,386 (65) Canada (158) (156) (1) (482) 67 Ttal net depsits excluding run-ff businesses (318) (737) 57 741 - Run-ff businesses (1,202) (1,927) 38 (3,058) 61 Ttal net depsits (1,520) (2,664) 43 (2,317) 34 REVENUE-GENERATING INVESTMENTS Mar. 31, Dec. 31, 2011 2010 % Revenue-generating investments (ttal) 324,849 319,733 2 Investments general accunt 124,185 125,128 (1) Investments fr accunt f plicyhlders 82,459 79,308 4 Off balance sheet investments third parties 118,205 115,297 3 Page 8 f 22
AMERICAS Underlying earnings befre tax increase t USD 474 millin driven by pensins and variable annuities Net incme increases t USD 359 millin New life sales are stable at USD 154 millin Grss depsits increase t USD 7.7 billin driven by strng pensin and variable annuity depsits Underlying earnings befre tax Underlying earnings frm the Americas represent the results f ging cncern businesses. As previusly annunced, earnings frm the BOLI/COLI and life reinsurance businesses are reprted in the run-ff line f business frm the first quarter f 2011. All cmparative numbers have been adjusted accrdingly. On this new basis, underlying earnings frm the Americas increased t USD 474 millin fr the first quarter 2011. - Earnings frm Life & Prtectin in the Americas were stable at USD 195 millin as grwth f the business was ffset by adverse mrtality results f USD 9 millin. - Individual Savings & Retirement earnings amunted t USD 189 millin. Fixed annuity earnings decreased t USD 90 millin as a result f lwer spreads and lwer asset balances, while variable annuity earnings increased t USD 93 millin mainly driven by strng net inflws and higher equity markets in recent quarters. Retail mutual funds earnings als increased as a result f higher accunt balances and amunted t USD 6 millin. - Earnings frm Emplyer Slutins & Pensins increased t USD 81 millin as a result f cntinued grwth in the retirement business and substantial rate increases fr synthetic guaranteed investment cntracts. - Earnings frm Canada were stable at USD 11 millin, while the jint-ventures in Latin America recrded a lss f USD 2 millin as a result f a USD 3 millin ne-ff charge. Net incme Net incme frm AEGON s businesses in the Americas increased t USD 359 millin in the first quarter. Higher underlying earnings, imprved results frm fair value items, substantially lwer impairments and a psitive cntributin frm run-ff businesses were nly partly ffset by higher tax charges. The lss f USD 17 millin fr fair value items was a cnsiderable imprvement cmpared with the first quarter last year mainly as a result f strng imprvements frm real estate and private equity investments. Gains n investments f USD 35 millin were realized as a result f nrmal trading activities. Net impairments decreased significantly t USD 80 millin and were mstly linked t residential mrtgage-backed securities. As f the first quarter f 2011, AEGON s run-ff line f business in the Americas is cmprised f the institutinal spread-based business, structured settlement pay-ut annuities, BOLI/COLI and life reinsurance. The latter tw have been included fr the first time this quarter. The results f the cmbined run-ff businesses increased t USD 30 millin, mainly as a result f a lwer amrtizatin yield paid n internally transferred assets related t the institutinal spread-based business and favrable mrtality results in the pay-ut annuities blck f business. Net incme cntained a tax expense f USD 83 millin, including a benefit f USD 23 millin related t crss-brder intercmpany reinsurance transactins between the United States and Ireland. Operating expenses Operating expenses declined 2% t USD 492 millin, the result f cntinued cst reductin initiatives. Sales and depsits New life sales were level at USD 154 millin. Grwth in recurring premium sales thrugh the agency channel was ffset by the effect f the discntinuance f single premium universal life sales in the bank channel which are n lnger prfitable in the current interest rate envirnment. New premium prductin fr accident & health increased t USD 199 millin. Page 9 f 22
Grss depsits increased t USD 7.7 billin as a result f higher pensin and variable annuity depsits. Cntinued net inflws fr the pensin and variable annuity businesses were mre than ffset by fixed annuity utflws, in additin t retail mutual funds and stable value slutins utflws. Net utflws ttaled USD 0.3 billin fr the quarter. AEGON is deemphasizing sales f fixed annuities as part f its strategic repsitining. Revenue-generating investments Revenue-generating investments increased t USD 325 billin cmpared t the furth quarter f 2010. The effects f favrable equity market perfrmance mre than ffset a decline in run-ff balances and the effects f higher interest rates. Value f new business Value f new business increased t USD 86 millin mainly as a result f imprved margins n variable annuities, pensin and life insurance prducts. The internal rate f return n new business was 16%. Page 10 f 22
THE NETHERLANDS EUR millins Ntes Q1 2011 Q4 2010 % Q1 2010 % Underlying earnings befre tax by line f business Life and Savings 43 54 (20) 39 10 Pensins 22 35 (37) 47 (53) Nn life 5 4 25 7 (29) Distributin 11 (3) - 11 - Share in underlying earnings befre tax f assciates - (3) - - - Underlying earnings befre tax 81 87 (7) 104 (22) Fair value items (60) 18-91 - Realized gains / (lsses) n investments 35 1-96 (64) Impairment charges (2) - - (1) (100) Other incme / (charges) (8) 5 - - - Incme befre tax 46 111 (59) 290 (84) Incme tax (7) (30) 77 (67) 90 Net incme 39 81 (52) 223 (83) Net incme / (lss) attributable t: Equity hlders f AEGON N.V. 39 81 (52) 223 (83) Net underlying earnings 66 70 (6) 77 (14) Cmmissins and expenses 272 283 (4) 264 3 f which perating expenses 189 205 (8) 182 4 New life sales Life single premiums 457 737 (38) 397 15 Life recurring premiums annualized 19 39 (51) 22 (14) Ttal recurring plus 1/10 single 65 113 (42) 62 5 Life and Savings 26 17 53 27 (4) Pensins 39 96 (59) 35 11 Ttal recurring plus 1/10 single 65 113 (42) 62 5 New premium prductin accident and health insurance 10 6 67 11 (9) New premium prductin general insurance 8 6 33 8 - Grss depsits (n and ff balance) by line f business Life and Savings 382 403 (5) 683 (44) Pensins 80 87 (8) 60 33 Ttal grss depsits 462 490 (6) 743 (38) Net depsits (n and ff balance) by line f business Life and Savings (142) (282) 50 82 - Pensins 27 22 23 (15) - Ttal net depsits (115) (260) 56 67 - REVENUE-GENERATING INVESTMENTS Mar. 31, Dec. 31, 2011 2010 % Revenue-generating investments (ttal) 73,393 72,584 1 Investments general accunt 37,448 37,174 1 Investments fr accunt f plicyhlders 23,627 23,057 2 Off balance sheet investments third parties 12,318 12,353 - Page 11 f 22
THE NETHERLANDS Underlying earnings befre tax decrease t EUR 81 millin due t higher prvisining fr lngevity Net incme decreases t EUR 39 millin New life sales increase t EUR 65 millin mainly as a result f a large single premium pensin cntract Underlying earnings befre tax - Earnings frm AEGON s Life & Savings peratins in the Netherlands increased t EUR 43 millin mainly as a result f higher investment incme. - Earnings frm the Pensin business declined t EUR 22 millin primarily due t EUR 24 millin higher prvisining fr lngevity. - Nn-life earnings amunted t EUR 5 millin as the psitive effect f a lw claims rati was mre than ffset by a lwer release f prvisins and investments in the business t increase efficiency. - Earnings frm the Distributin businesses amunted t EUR 11 millin. Updated prjected mrtality tables shw a strng increase in life expectancy in the Dutch ppulatin. IFRS prvisining is based n yearly bserved mrtality tables and is taken thrugh underlying earnings, in line with ur accunting methdlgy.. Based n this actual experience, the cmpany takes a measured apprach tward prvisining by assuming a cntinuatin f the emerging trend f strng imprvements in bserved mrtality fr 2010. AEGON expects t add n average EUR 20 millin per quarter t the prvisin, in additin t 2010 levels f prvisining. Operating expenses Operating expenses increased 4% t EUR 189 millin in the first quarter f 2011, mainly as a result f investments in further develping new distributin capabilities. Sales and depsits New life sales increased 5% t EUR 65 millin during the first quarter f 2011. This is the result f increased pensin sales, mainly due t a large single premium case, while sales f individual life insurance prducts remained level. Premium prductin fr accident & health and nn-life prducts amunted t EUR 18 millin. A new marketing strategy is being implemented t increase sales in the Mtr and Fire segments f the market. Grss depsits decreased t EUR 462 millin as AEGON currently ffers less cmpetitive interest rates n savings accunts. Value f new business The value f new business declined t EUR 23 millin mainly a result f lwer margins n mrtgages and updated mrtality assumptins. The internal rate f return n new business amunted t 14%. Net incme Net incme frm AEGON s businesses in the Netherlands decreased t EUR 39 millin. Fair value items amunted t a negative EUR 60 millin, the result mainly f an exceptinal lss n strategic allcatin funds. Gains n investments ttaled EUR 35 millin fr the quarter and were mstly the result f nrmal trading in the investment prtfli. Other charges f EUR 8 millin related mainly t the restructuring f AEGON Bank. The rerganizatin is expected t save EUR 20 millin per annum in csts when cmpleted. Revenue-generating investments Revenue-generating investments increased 1% t EUR 73 billin cmpared with the previus quarter, the result f business grwth. Page 12 f 22
UNITED KINGDOM GBP millins Ntes Q1 2011 Q4 2010 % Q1 2010 % Underlying earnings befre tax by line f business Life 21 4-18 17 Pensins (9) (8) (13) 9 - Distributin (2) (2) - (2) - Underlying earnings befre tax 10 (6) - 25 (60) Fair value items (1) - - 2 - Realized gains / (lsses) n investments 25 7-2 - Impairment charges - (20) - (7) - Other incme / (charges) 7 (5) (11) 55 21 - Incme befre tax 29 (30) - 43 (33) Incme tax attributable t plicyhlder return (1) 6 - (21) 95 Incme befre incme tax n sharehlders return 28 (24) - 22 27 Incme tax n sharehlders return 18 8 125 (2) - Net incme 46 (16) - 20 13 0 Net incme / (lss) attributable t: Equity hlders f AEGON N.V. 46 (16) - 20 130 Net underlying earnings 33 (2) - 22 50 Cmmissins and expenses 172 164 5 170 1 f which perating expenses 98 98-95 3 New life sales 8 Life single premiums 841 798 5 1,139 (26) Life recurring premiums annualized 127 110 15 121 5 Ttal recurring plus 1/10 single 211 190 11 235 (10) Life 16 15 7 26 (38) Pensins 195 175 11 209 (7) Ttal recurring plus 1/10 single 211 190 11 235 (10) Grss depsits (n and ff balance) by line f business Variable annuities 17 21 (19) 32 (47) Ttal grss depsits 17 21 (19) 32 (47) Net depsits (n and ff balance) by line f business Variable annuities 2 10 (80) 25 (92) Ttal net depsits 2 10 (80) 25 (92) REVENUE-GENERATING INVESTMENTS Mar. 31, Dec. 31, 2011 2010 % Revenue-generating investments (ttal) 57,717 57,641 - Investments general accunt 7,855 7,979 (2) Investments fr accunt f plicyhlders 49,862 49,662 - Page 13 f 22
UNITED KINGDOM Underlying earnings befre tax decrease t GBP 10 millin as a result f exceptinal charges Net incme increases t GBP 46 millin New life sales decrease t GBP 211 millin as a result f lwer annuity sales Underlying earnings befre tax - Earnings frm Life increased t GBP 21 millin, mainly driven by cst reductins. - Pensins recrded a lss f GBP 9 millin as the benefits frm further business grwth and imprved market cnditins were mre than ffset by charges f GBP 21 millin mainly related t the custmer redress prgram. - Distributin recrded a lss f GBP 2 millin, level with the results in the cmparable quarter last year. In May 2009, AEGON initiated a prgram t identify and crrect histrical issues within its custmer plicy recrds. The main pririty f the prgram has been t deal with issues that resulted in financial detriment and t return affected custmers t the financial psitin they wuld have been in had the issue nt ccurred. Effrts t determine the full scpe f custmer redress is expected t cntinue thrughut the remainder f the year and culd ptentially lead t additinal charges. AEGON is n track t reslve all issues and expects t have repaid the majrity f the custmer detriment by the end f 2011. Net incme Net incme increased t GBP 46 millin, as lwer underlying earnings were mre than ffset by higher gains n investments, a tax benefit and the absence f impairments. Gains n investments amunted t GBP 25 millin as a result f a cntinuing shift frm crprate bnds int gilts. Operating expenses Operating expenses slightly increased t GBP 98 millin mainly driven by expenses related t custmer redress and charges relating t the restructuring prgram annunced in June 2010. These charges are nly partially ffset by cst savings. Excluding restructuring charges, perating expenses declined 4%. The restructuring aims t reduce perating expenses by 25% by the end f 2011. It is expected that further restructuring charges will arise in cming quarters. The restructuring prgram is n track and f the targeted GBP 80 t 85 millin annually, already GBP 37 millin has been enacted. Sales New life sales decreased t GBP 211 millin during the quarter as a result f lwer annuity sales due t repricing. These mves are partially ffset by an increase in grup pensin sales. Value f new business Value f new business in the United Kingdm declined t GBP 8 millin, partly driven by lwer sales. The internal rate f return n new business fr the first quarter was 10%. Revenue-generating investments Cmpared with the furth quarter 2010, revenuegenerating investments remained level at GBP 58 billin. A reductin in the crprate tax rate in the United Kingdm had a psitive impact n deferred tax and led t a tax benefit f GBP 20 millin. Net incme als cntained a charge f GBP 7 millin related t the restructuring f AEGON s peratins in the United Kingdm. Page 14 f 22
NEW MARKETS EUR millins Ntes Q1 2011 Q4 2010 % Q1 2010 % Underlying earnings befre tax Central Eastern Eurpe 26 29 (10) 27 (4) Asia (11) (12) 8 (6) (83) Spain & France 23 24 (4) 20 15 Variable Annuities Eurpe 5 4 25 (2) - AEGON Asset Management 14 14-7 100 Underlying earnings befre tax 57 59 (3) 46 24 Fair value items - - - 3 - Realized gains / (lsses) n investments 2 - - 3 (33) Impairment charges (2) (11) 82 (2) - Other incme / (charges) 11 (40) - - - Incme befre tax 68 8-50 36 Incme tax (26) 1 - (13) (100) Net incme 42 9-37 14 Net incme / (lss) attributable t: Equity hlders f AEGON N.V. 42 9-36 17 Nn-cntrlling interests - - - 1 - Net underlying earnings 38 49 (22) 32 19 Cmmissins and expenses 180 216 (17) 175 3 f which perating expenses 141 168 (16) 133 6 New life sales 12 Life single premiums 174 176 (1) 108 61 Life recurring premiums annualized 59 58 2 55 7 Ttal recurring plus 1/10 single 76 75 1 66 15 Life 62 60 3 53 17 Assciates 14 15 (7) 13 8 Ttal recurring plus 1/10 single 76 75 1 66 15 Central Eastern Eurpe 27 27-19 42 Asia 11 9 22 10 10 Spain & France 38 39 (3) 37 3 Ttal recurring plus 1/10 single 76 75 1 66 15 New premium prductin accident and health insurance 3 2 50 4 (25) New premium prductin general insurance 5 9 (44) 6 (17) Grss depsits (n and ff balance) 12 Central Eastern Eurpe 182 231 (21) 226 (19) Asia 11 10 10 44 (75) Spain & France 8 23 (65) 25 (68) Variable Annuities Eurpe 131 133 (2) 188 (30) AEGON Asset Management 935 1,144 (18) 1,110 (16) Ttal grss depsits 1,267 1,541 (18) 1,593 (20) Net depsits (n and ff balance) 12 Central Eastern Eurpe 108 140 (23) 69 57 Asia 11 8 38 25 (56) Spain & France (11) 4-25 - Variable Annuities Eurpe 26 40 (35) 79 (67) AEGON Asset Management (1,853) 112 - (77) - Ttal net depsits (1,719) 304-121 - REVENUE-GENERATING INVESTMENTS Mar. 31, Dec. 31, 2011 2010 % Revenue-generating investments (ttal) 32,211 34,075 (5) Investments general accunt 2,926 2,810 4 Investments fr accunt f plicyhlders 6,210 6,139 1 Off balance sheet investments third parties 23,075 25,126 (8) Page 15 f 22
NEW MARKETS Underlying earnings befre tax increase 24% t EUR 57 millin Net incme increases 14% t EUR 42 millin New life sales increase t EUR 76 millin, driven by strng recurring premium sales in CEE Underlying earnings befre tax - Earnings frm Central & Eastern Eurpe remained relatively cnstant at EUR 26 millin as grwth f the life business was ffset by the negative impact f the new pensin legislatin in Hungary. - AEGON s peratins in Asia recrded a lss f EUR 11 millin driven by cntinued investments in the cmpany s jint ventures in China, India and Japan. Additinally, the results fr the Asia reginal ffice are included in the Asia results frm the first quarter f 2011, fllwing the implementatin f the new peratinal structure fr the Asian peratins. - Earnings frm Spain & France increased t EUR 23 millin as a result f business grwth fllwing the cntinued strategic fcus n prtectin prducts in Spain. - Earnings frm Variable Annuities Eurpe increased t EUR 5 millin driven by imprved market cnditins and grwth f the business. - AEGON Asset management reprted strng earnings f EUR 14 millin fr the quarter. As part f the new pensin legislatin in Hungary, assets are expected t be transferred t the Hungarian State during the secnd quarter 2011. In Pland, the gvernment will reduce cntributins t private pensin funds. AEGON expects the measures in Hungary and Pland t have a negative impact n underlying earnings f apprximately EUR 20 millin in 2011. Operating expenses Operating expenses increased t EUR 141 millin in the first quarter, as a result f restructuring charges f EUR 6 millin relating t asset management. Excluding restructuring charges, perating expenses increased slightly cmpared with the first quarter f 2010. Cmpared t the furth quarter f last year, perating expenses were dwn 16% as Q4 2010 included a write-dwn f intangibles fllwing the changes in pensin legislatin in Hungary. Sales and depsits New life sales increased 15% t EUR 76 millin. - In Central & Eastern Eurpe, new life sales increased 42% t EUR 27 millin as a result f strng recurring premium prductin in Hungary as the fcus f the tied distributin netwrk shifted frm pensin t life insurance prducts. Single premium prductin benefited frm imprved ecnmic cnditins. - In Asia, new life sales increased 10% t EUR 11 millin driven by grwth in India. New life sales in China were impacted by new regulatin and remained level. - New life sales in Spain and France increased 3% t EUR 38 millin. New premium prductin frm AEGON s general insurance and accident & health businesses decreased t EUR 8 millin driven by lwer mtr insurance prductin due t increased cmpetitin. Net incme Net incme frm New Markets increased t EUR 42 millin during the quarter as a result f higher underlying earnings and higher ther incme. Other incme amunted t EUR 11 millin, as a settlement f legal claims f EUR 37 millin was ffset by a charge f EUR 20 millin related t the full year Hungarian bank tax and restructuring csts f EUR 6 millin. Impairment charges remained stable at EUR 2 millin. Grss depsits frm New Markets declined 20% t EUR 1.3 billin, primarily driven by lwer asset management depsits. Page 16 f 22
Value f new business Value f new business in New Markets decreased t EUR 23 millin as the negative effects f adverse pensin legislatin in Hungary and margin pressure fr Variable Annuities Eurpe were nly partly ffset by grwth in Turkey. The internal rate f return n new business fr the first quarter remained high at 35%. Revenue-generating investments Revenue-generating investments declined 5% cmpared with the furth quarter f 2010 t EUR 32 billin, driven by net utflws in asset management. Page 17 f 22
FINANCIAL OVERVIEW, Q1 2011 GEOGRAPHICALLY c) Hlding, ther The United New activities & EUR millins Americas Netherlands Kingdm Markets eliminatins Ttal Underlying earnings befre tax by line f business Life 150 43 24 19-236 Individual savings and retirement prducts 139 - - - - 139 Pensins 59 22 (10) 3-74 Nn-life - 5-11 - 16 Distributin - 11 (2) - - 9 Asset Management - - - 14-14 Other - - - - (83) (83) Share in underlying earnings befre tax f assciates (1) - - 10-9 Underlying earnings befre tax 347 81 12 57 (83) 414 Fair value items (12) (60) (1) - (12) (85) Realized gains / (lsses) n investments 25 35 29 2-91 Impairment charges (58) (2) - (2) - (62) Other incme / (charges) - (8) (6) 11 - (3) Run-ff businesses 22 - - - - 22 Incme befre tax 324 46 34 68 (95) 377 Incme tax (61) (7) 20 (26) 24 (50) Net incme 263 39 54 42 (71) 327 Net underlying earnings 253 66 39 38 (63) 333 EMPLOYEE NUMBERS Mar. 31, 2011 Dec. 31, 2010 Emplyees excluding agents 23,990 24,408 Agents 2,990 3,066 Ttal number f emplyees excluding Assciates 26,980 27,474 AEGON's share f emplyees (including agents) in Assciates 3,932 3,680 Ttal 30,912 31,154 Page 18 f 22
APPENDIX II VALUE OF NEW BUSINESS AND IRR VNB VNB VNB EUR millins, after tax Q1 2011 Q4 2010 % Q1 2010 % Americas 63 53 19 44 43 The Netherlands 23 42 (45) 49 (53) United Kingdm 9 9-14 (36) New Markets 23 25 (8) 31 (26) Ttal 118 129 (9) 138 (14) IRR % IRR% IRR% EUR millins, after tax Q1 2011 Q4 2010 Q1 2010 Americas 16.0 13.9 12.6 The Netherlands 13.9 10.9 19.2 United Kingdm 10.0 10.1 10.7 New Markets 35.1 36.3 34.2 Ttal 18.8 16.8 19.3 MODELED NEW BUSINESS, APE AND DEPOSITS APE EUR millins Ntes Q1 2011 Q4 2010 % Q1 2010 % 9 Americas 248 265 (6) 216 15 The Netherlands 75 188 (60) 93 (19) United Kingdm 237 225 5 265 (11) New Markets 95 99 (4) 80 19 Ttal 655 776 (16) 654 - Depsits EUR millins Ntes Q1 2011 Q4 2010 % Q1 2010 % 9 Premium business Depsit business Americas 4,636 3,483 33 3,926 18 United Kingdm 19 24 (21) 34 (44) New Markets 216 219 (1) 307 (30) Ttal 4,871 3,726 31 4,267 14 VNB/PVNBP SUMMARY Premium business VNB PVNBP VNB / PVNBP Q1 2011 EUR millins Ntes % % VNB / APE 10 Americas 30 826 3.7 12.2 The Netherlands 23 637 3.7 31.2 United Kingdm 9 1,489 0.6 3.8 New Markets 22 694 3.1 22.8 Ttal 84 3,646 2.3 12.9 Depsit business VNB PVNBP VNB / PVNBP Q1 2011 VNB / Depsits EUR millins Ntes % % 10 Americas 33 6,477 0.5 0.7 United Kingdm 0 19 0.5 0.5 New Markets 1 316 0.3 0.5 Ttal 34 6,812 0.5 0.7 Page 19 f 22
Ntes: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) Fr segment reprting purpses underlying earnings befre tax, net underlying earnings, cmmissins and expenses, perating expenses, incme tax including assciated cmpanies, incme befre tax including assciated cmpanies and value f new business (VNB) are calculated by cnslidating n a prprtinate basis the revenues and expenses f certain f ur assciated cmpanies in Spain, India, Brazil and Mexic. We believe that ur nn-ifrs measures prvide meaningful infrmatin abut the underlying perating results f ur business including insight int the financial measures that ur senir management uses in managing ur business. Amng ther things ur senir management is cmpensated based in part n AEGON's results against targets using the nn-ifrs measures presented here. While ther insurers in ur peer grup present substantially similar nn-ifrs measures, the nn-ifrs measures presented in this dcument may nevertheless differ frm the nn-ifrs measures presented by ther insurers. There is n standardized meaning t these measures under IFRS r any ther recgnized set f accunting standards and readers are cautined t cnsider carefully the different ways in which we and ur peers present similar infrmatin befre cmparing them. AEGON believes the nn-ifrs measures shwn herein, when read tgether with ur reprted IFRS financial statements, prvide meaningful supplemental infrmatin fr the investing public t evaluate AEGON s business after eliminating the impact f current IFRS accunting plicies fr financial instruments and insurance cntracts, which embed a number f accunting plicy alternatives that cmpanies may select in presenting their results (i.e. cmpanies can use different lcal GAAPs) and that can make the cmparability frm perid t perid difficult. Fr a definitin f underlying earnings and the recnciliatin frm underlying earnings befre tax t incme befre tax we refer t Nte 3 "Segment infrmatin" f ur Cndensed cnslidated interim financial statements. Net incme refers t net incme attributable t equity hlders f AEGON N.V. and minrity interest. Sales is defined as new recurring premiums plus 1/10 f single premiums plus 1/10 f grss depsits plus new premium prductin accident and health plus new premium prductin general insurance. The present value f future distributable earnings n the blck f business sld in the reprting perid. Value f new business is calculated using beginning f year ecnmic assumptins and assumptins utside f management cntrl, and beginning f quarter perating assumptins Return n equity is calculated by dividing the net underlying earnings after cst f leverage by the average sharehlders' equity excluding the preferred shares and the revaluatin reserve. Capital securities that are denminated in freign currencies are, fr purpses f calculating the capital base rati, revalued t the perid-end exchange rate. All ratis exclude AEGON's revaluatin reserve. Included in ther incme/(charges) are charges made t plicyhlders with respect t incme tax in the United Kingdm. Includes prductin n investment cntracts withut a discretinary participatin feature f which the prceeds are nt recgnized as revenues but are directly added t ur investment cntract liabilities. APE = recurring premium + 1/10 single premium. PVNBP: Present Value New Business Premium. Recnciliatin f perating expenses, used fr segment reprting, t ur IFRS based perating expenses. Q1 2011 Emplyee expenses 537 Administrative expenses 284 Operating expenses fr IFRS reprting 821 Operating expenses related t assciates 16 Operating expenses in earnings release 837 New life sales, grss depsits and net depsits data include results f ur assciated cmpanies in Spain, India, Brazil and Mexic which are cnslidated n a prprtinate basis. Operatinal free cash flw reflect the sum f the return n free surplus, earnings n in-frce business, release n required surplus n in-frce business reduced by new business first year strain and required surplus n new business. Refer t ur Embedded Value 2010 reprt fr further details. a) b) c) The calculatin f the IGD (Insurance Grup Directive) capital surplus and rati are based n Slvency I capital requirements n IFRS fr entities within the EU (Pillar 1 fr AEGON UK), and lcal regulatry slvency measurements fr nn-eu entities. Specifically, required capital fr the life insurance cmpanies in the US is calculated as tw times the upper end f the Cmpany Actin Level range (200%) as applied by the Natinal Assciatin f Insurance Cmmissiners in the US. The calculatin f the IGD rati excludes the available and required capital f the UK With-Prfit funds. In the UK slvency surplus calculatin the lcal regulatr nly allws the available capital number f the With-Prfit funds included in verall lcal available capital t be equal t the amunt f With-Prfit funds' required capital. The results in this release are unaudited. The cmparative 2010 earnings and sales infrmatin has been revised t reflect the transfer f the Life Reinsurance and BOLI/COLI businesses t the Run-ff businesses line t make the infrmatin cnsistent with the current perid figures. Currencies Incme statement items: average rate 1 EUR = USD 1.3663 (2010: USD 1.3838). Incme statement items: average rate 1 EUR = GBP 0.8523 (2010: GBP 0.8865). Balance sheet items: clsing rate 1 EUR = USD 1.4207 (2010: USD 1.3479; year-end 2010: USD 1.3362). Balance sheet items: clsing rate 1 EUR = GBP 0.8837 (2010: GBP 0.8898; year-end 2010: GBP 0.8608). Page 20 f 22
ADDITIONAL INFORMATION The Hague, May 12, 2011 Press cnference call 8:00 am CET: Audi webcast n www.aegn.cm Analyst & investr presentatin / cnference call 9:00 am CET: Audi webcast n www.aegn.cm Call-in numbers USA: +1 480 629 9726 UK: + 44 207 153 2027 NL: +31 45 631 6901 Replay Tw hurs after the cnference call, a replay will be available n www.aegn.cm and n the fllwing phne numbers: UK +44 207 154 2833 Access Cde: 4434477# US +1 303 590 3030 Access Cde: 4434477# Supplements AEGON s Q1 2011 Financial Supplement and Cndensed Cnslidated Interim Financial Statements and the Embedded Value Reprt 2010 are available n www.aegn.cm. Abut AEGON Cntact infrmatin As an internatinal life insurance, pensin and asset management cmpany based in The Hague, AEGON has businesses in ver twenty markets in the Americas, Eurpe and Asia. AEGON cmpanies emply apprximately 27,000 peple and have sme 40 millin custmers acrss the glbe. Media relatins: Greg Tucker +31(0)70 344 8956 gcc-ir@aegn.cm Key figures - EUR First quarter 2011 Full year 2010 Underlying earnings befre tax 414 millin 1.8 billin Investr relatins: Willem van den Berg New life sales 501 millin 2.1 billin +31 (0)70 344 8305 Grss depsits 7.4 billin 33 billin 877 548 9668 tll free USA nly ir@aegn.cm Revenue-generating investments (end f perid) 400 billin 413 billin www.aegn.cm Page 21 f 22
Cautinary nte regarding nn-gaap measures This dcument includes certain nn-gaap financial measures: underlying earnings befre tax and value f new business. The recnciliatin f underlying earnings befre tax t the mst cmparable IFRS measure is prvided in Nte 3 "Segment infrmatin" f ur Cndensed cnslidated interim financial statements. Value f new business is nt based n IFRS, which are used t reprt AEGON's primary financial statements and shuld nt viewed as a substitute fr IFRS financial measures. We may define and calculate value f new business differently than ther cmpanies. Please see AEGON s Embedded Value Reprt dated May 12, 2011 fr an explanatin f hw we define and calculate. AEGON believes that these nn-gaap measures, tgether with the IFRS infrmatin, prvide a meaningful measure fr the investment cmmunity t evaluate AEGON s business relative t the businesses f ur peers. Lcal currencies and cnstant currency exchange rates This dcument cntains certain infrmatin abut ur results and financial cnditin in USD fr the Americas and GBP fr the United Kingdm, because thse businesses perate and are managed primarily in thse currencies. Certain cmparative infrmatin presented n a cnstant currency basis eliminates the effects f changes in currency exchange rates. Nne f this infrmatin is a substitute fr r superir t financial infrmatin abut us presented in EUR, which is the currency f ur primary financial statements. Frward-lking statements The statements cntained in this dcument that are nt histrical facts are frward-lking statements as defined in the US Private Securities Litigatin Refrm Act f 1995. The fllwing are wrds that identify such frward-lking statements: aim, believe, estimate, target, intend, may, expect, anticipate, predict, prject, cunting n, plan, cntinue, want, frecast, gal, shuld, wuld, is cnfident, will, and similar expressins as they relate t ur cmpany. These statements are nt guarantees f future perfrmance and invlve risks, uncertainties and assumptins that are difficult t predict. We undertake n bligatin t publicly update r revise any frward-lking statements. Readers are cautined nt t place undue reliance n these frward-lking statements, which merely reflect cmpany expectatins at the time f writing. Actual results may differ materially frm expectatins cnveyed in frward-lking statements due t changes caused by varius risks and uncertainties. Such risks and uncertainties include but are nt limited t the fllwing: Changes in general ecnmic cnditins, particularly in the United States, the Netherlands and the United Kingdm; Changes in the perfrmance f financial markets, including emerging markets, such as with regard t: The frequency and severity f defaults by issuers in ur fixed incme investment prtflis; and The effects f crprate bankruptcies and/r accunting restatements n the financial markets and the resulting decline in the value f equity and debt securities we hld; The frequency and severity f insured lss events; Changes affecting mrtality, mrbidity, persistence and ther factrs that may impact the prfitability f ur insurance prducts; Changes affecting interest rate levels and cntinuing lw r rapidly changing interest rate levels; Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates; Increasing levels f cmpetitin in the United States, the Netherlands, the United Kingdm and emerging markets; Changes in laws and regulatins, particularly thse affecting ur peratins, the prducts we sell, and the attractiveness f certain prducts t ur cnsumers; Regulatry changes relating t the insurance industry in the jurisdictins in which we perate; Acts f Gd, acts f terrrism, acts f war and pandemics; Changes in the plicies f central banks and/r gvernments; Lwering f ne r mre f ur debt ratings issued by recgnized rating rganizatins and the adverse impact such actin may have n ur ability t raise capital and n ur liquidity and financial cnditin; Lwering f ne r mre f insurer financial strength ratings f ur insurance subsidiaries and the adverse impact such actin may have n the premium writings, plicy retentin, prfitability f its insurance subsidiaries and liquidity; The effect f the Eurpean Unin s Slvency II requirements and ther regulatins in ther jurisdictins affecting the capital we are required t maintain; Litigatin r regulatry actin that culd require us t pay significant damages r change the way we d business; Custmer respnsiveness t bth new prducts and distributin channels; Cmpetitive, legal, regulatry, r tax changes that affect the distributin cst f r demand fr ur prducts; The impact f acquisitins and divestitures, restructurings, prduct withdrawals and ther unusual items, including ur ability t integrate acquisitins and t btain the anticipated results and synergies frm acquisitins; Our failure t achieve anticipated levels f earnings r peratinal efficiencies as well as ther cst saving initiatives; Our inability t btain cnsent frm the Dutch Central Bank t repurchase ur Cre Capital Securities; and The nn-fulfillment f the cnditins precedent underlying the agreement t divest Transamerica Reinsurance. Further details f ptential risks and uncertainties affecting the cmpany are described in the cmpany s filings with Eurnext Amsterdam and the US Securities and Exchange Cmmissin, including the Annual Reprt n Frm 20-F. These frward-lking statements speak nly as f the date f this dcument. Except as required by any applicable law r regulatin, the cmpany expressly disclaims any bligatin r undertaking t release publicly any updates r revisins t any frward-lking statements cntained herein t reflect any change in the cmpany s expectatins with regard theret r any change in events, cnditins r circumstances n which any such statement is based. Page 22 f 22