s growth withturn profile

Mark Mullin

Sustainable earninr

Sustainable earning an improved risk-re

Mark Mullin

Member of the Management Board

and CEO of AEGON Americas

Paris, June 8, 2011

Goldman Sachs European Financials Conference

gs growth with eturn profile

ement

e

cas, Europe and Asia

e

Life insurance, pensions and asset mana

Over 40 million customers across the glo

Presence in markets throughout the Amer

Approximately 27,000 employees worldwi

� Life insurance, pensions and asset manag

� Over 40 million customers across the glob

� Presence in markets throughout the Ameri

� Approximately 27,000 employees worldwid

� Revenues of EUR 32 billion (2010)

AEGON at a glance

2

Underlying earnings before tax

■ Americas

■ The Netherlands

■ United Kingdom

■ New markets

17%

3%

9%

gement

be

icas, Europe and Asia

de

71%

s

ons

ction

# 4 Non-life in

y

# 6 Term life

d company best estimates

pensio

pen

prot

in Hungar

e nsuranceFR

Romania and Tur

Rankings are based on various external sources a

Building on leading market positions

Americas Europe Asia

USA # 3 Term life UK # 3 Group pension ns NL # 3 Group pensions CHN # 9 of foreign-owned

# 4 Universal life # 3 Individual pensi sions # 5 Individual life life insurers in

China # 10 Variable annuities # 6 Annuities # 5 Accident & health

# 13 Pensions # 8 Individual prote ection # 7 Property & casualty Start-ups:

CAN # 5 Universal life CEE # 2 Life in Hungary y SP # 7 Life insurance India and Japan

# 6 Term life # 4 Non-life in

# 6 Segregated funds Hungary FR # 10 Lif i# 10 Life insurance

# 5 Unit-linked in BZL # 13 Life insurance Poland

MEX # 9 Life insurance Start-ups: Romania and Turke key

Rankings are based on various external sources an nd company best estimates 3

growth with improved riskAEGON aims for sustainable earnings

AEGON aims for sustainable earnings growth with improved risk-return profile

4

transformed

significantly

� Sustainable cash flows

and dividends

� Strong capital position � Strong capital position

� Improved risk-return profile

� Sustainable earnings growth

ategic management actions. From this new basere tax on average 7 to 10% per annum.

Underlying earnings in 2011 will be affected by stAEGON expects to grow underlying earnings bef

AEGON aims to deliver

Sustainable cash flows � Improve operational free cash flow of current level of

EUR 1.0-1.2 billion by 30% by 2015 and dividends � Pay a sustainable dividend based on free cash flow and

capital position

Strong capital position � Maintain strong capital buffer

� Core capital of at least 75% of total capital by end of 2012

5

* Underlying earnings in 2011 will be affected by str AEGON expects to grow underlying earnings befo

Improved risk-return profile �

�

� Sustainable earnings growth �

�

�

�

rategic management actions. From this new base ore tax on average 7 to 10% per annum.

Generate return on equity of 10-12% medium term

Increase fee businesses to 30-35% of annual underlying

earnings before tax by 2015

Execute on credit and interest rate risk reduction

Growing in our chosen markets - underlying earnings before

tax on average 7-10% p.a.* from rebased level

New base of underlying earnings in 2011, mainly as a result

of strategic management actions

Further improve cost efficiency in established markets

Improve the geographical balance of capital allocation

of EUR 1.0

and capital position

pera ona ca ow

ares after full repurchase of core capital securities

0 in May 2012

ction of the shareholder

Improve operational free cash flow of current level

Pay a sustainable dividend based on free cash flo

.

Aim to resume dividend payments on common s

Intent to pay a dividend over H2 2011 of EUR 0.

Dividends may be paid in cash or stock at the el

-

Sustainable cash flows and dividends

� Free cash flow generation:

� Improve operational free cash flow of current level

� Pay a sustainable dividend based on free cash flow

Execution

2010 free cash flow

O ti l sh fl

6

� Aim to resume dividend payments on common sh

� Intent to pay a dividend over H2 2011 of EUR 0.1

� Dividends may be paid in cash or stock at the ele

Operational cash flow

Investments in new business

Operational free cash flow

Holding expenses

Free cash flow

of EUR 1.0 1.2 billion by 30% by 2015

w and capital position

EUR billion

2 6

hares after full repurchase of core capital securities

10 in May 2012

ection of the shareholder

2.6

(1.3)

1.3

(0.6)

0.7

ies (EUR 1.5bn + EUR 750m premium), funded by:

on February 24, 2011

vestments, which include Transamerica Reinsurance

of total capital by end 2012

erating units as at holding level

ual holding expenses* in current environment

sources

ons on perpetual capital securities, dividendspproximately EUR 600 million per annum

Fully repurchase 375m core capital securi

Completed equity raising of EUR 903 millio

Internal sources, including proceeds from d

Aim to achieve core capital of at least 75

Maintain strong capital position, both at o

Target a buffer at holding level of 1.5x an

Internal r

≥6

Holding expenses include interest expenses, couon preferred shares and holding costs of in total

Strong capital position

� Fully repurchase 375m core capital securitties (EUR 1.5bn + EUR 750m premium), funded by:

► Completed equity raising of EUR 903 million n on February 24, 2011

► Internal sources, including proceeds from diivestments, which include Transamerica Reinsurance

� Aim to achieve core capital of at least 75% % of total capital by end 2012

� Maintain strong capital position, both at op perating units as at holding level

� Target a buffer at holding level of 1.5x ann nual holding expenses* in current environment

7

Dec 31, 2010 Full repurchase Dutch State

Internal re

75% (10%) ≥6%

Movement core capital ratio

* Holding expenses include interest expenses, coup on preferred shares and holding costs of in total a

esources Equity issuance Dec 31, 2012

% 4% ≥75%

pons on perpetual capital securities, dividends approximately EUR 600 million per annum

ategy

usiness

n markets

� Delivering high quality, sustainableity, sustainable

Executing on our st

Focus on our core

Growing in our cho

Delivering high quality, sustainable earningsDelivering high qua

The Americas is delivering results

� Executing on our str rategy

� Focus on our core b business

� Growing in our chose sen markets

� Delivering high qual lity, sustainable earnings

8

of earnings

ank BOLI/COLI businesses

w fully hedged

in the bank channelin the bank channel

timeframes

Improved risk return profile and qualit

emphasize sales of capital intensive product

Run off of institutional spread based and small

book n

Discontinued single premium universal life saleDiscontinued single premium universal life sale

Product redesign and shortened implementatio

Improved risk return profile and quality

Execution

� Growing fee based businesses

� De-emphasize sales of capital intensive products

� Divestment of Transamerica Reinsurance

� Run off of institutional spread based and small b

� Delta equity exposure of VA GMIB back-book no

� Discontinued single premium universal life sales

9

40

15

25

20

Sources of earnings exclude new business strain

� Spread

� Fees

� Technical

� Interest on Surplus

� Discontinued single premium universal life sales

� Product redesign and shortened implementation

Pre-crisis underlying earnings

2007

y of earnings

s

bank BOLI/COLI businesses

ow fully hedged

s in the bank channel

29%

16%

25%

30%

~15

~35 ~25

~25

s in the bank channel

n timeframes

Underlying earnings Future underlying earnings

2010 2015

osen markets

th, higher return business

Sustainable earnings growth in our c

Shifting to higher gro

Sustainable earnings growth in our ch hosen markets

Markets we plan to maintain or reduce

▬ Maintain synthetic GIC

� Spread business

� Life Reinsurance

10

� Small bank BOLI / COLI

Shifting to higher grow

Markets we plan to grow

� Life and Protection

� Variable annuities

� Retail mutual funds

� Pensions

� Latin America

wth, higher return business

osen marketsSustainable earnings growth in our c

Sustainable earnings growth in our ch hosen markets

796 831

2009 2010

New life sales up 4%

11

2,408

3,486

2009 2010

Mutual fund deposits up 45%

3,372 3,830

2009 2010

Variable annuity deposits up 14%

11,436

16,285

2009 2010

Pension deposits up 42%

operations to other locations

to grow the business

Shutting down Louisville and consolidatin

Operating expenses down while continuing

Sustainable earnings growth

Aggressively managing expenses

� Restructured business units

� Shutting down Louisville and consolidating

� Consolidating locations in Baltimore

� Operational excellence

► Operating expenses down while continuing

► Significant headcount reduction

12

2,249

1,971

2009 2010

* Excludes Latin America and agents

Operating expenses (USD million)

g operations to other locations

to grow the business

11,703 11,358

2009 2010

Headcount*

erica Life and Protection

ower cap a mar e s everage

Transa

Sustainable earnings growth - Transam

Business profile

� Life and health products

� Stable market with solid earnings growth

� Top 10 player

� High quality earnings

� L it l k t l

13

� Lower capital markets leverage

� Strong distributable earnings

Life Sales

TOTAL

Term

Universal life

Whole life

* Source: LIMRA as of Q4 2010

merica Life and Protection

Strategic priorities

� Continue to grow profitable sales

� Leverage operational efficiencies

� Manage market risks through product design and hedging

� Enhance customer service � Enhance customer service

� Promote the Transamerica brand

Rank* Market Share*

7 4.3%

3 6.7%

4 5.0%

9 2.4%

al Savings and Retirement

ble annuities

il mutual funds

d annuities

s

Individ

� omp ete e ta e g ng o ac oo

Vari

Ret

Fix

Growing fee busine

Sustainable earnings growth - Individu

Business profile

� Annuity and mutual fund products

� Strong growth potential

� Fee based quality earnings

� Some capital markets leverage post hedging

14

32%

23%

45%

� Varia

� Reta

� Fixe

Growing fee busines

10.5 billion

Gross deposits FY 2009 (USD billion)

ual Savings and Retirement

Strategic priorities

� Grow variable annuities, mutual funds and advisory services

� Leverage speed to market

� Embed strong product risk management disciplines

C l d d l h d i f VA GMIB b k b k

49%

44%

7%

� Completed delta hedging of VA GMIB back book

� Promote the Transamerica brand

able annuities

ail mutual funds

ed annuities

ss

7.9 billion

Gross deposits FY 2010 (USD billion)

ss

46% compared with Q1 2010

able decrement rates

net inflows and higher account balances

Variable annuities

based busin

US variable annuities gross deposits rose

Net flows increased on higher sales and s

Variable annuity earnings driven by stron

Strategic shift toward fee-based busineess – Variable Annuities

� US variable annuities gross deposits rose

► Growth in all traditional channels

► Newly launched VA rider well received

► Fast-to-market strategy pays off

� Net flows increased on higher sales and st

� Variable annuity earnings driven by strong

46% compared with Q1 2010

table decrement rates

g net inflows and higher account balances

► Market rationalization

► Select competitors leave the market

► Equity market recovery beneficial for sales

15

Net deposits (USD million)

-23

158

220

Q1 10 Q4 10 Q1 11

Variable annuities

Gross deposits (USD billion)

0.8 1.0

1.2

Q1 10 Q4 10 Q1 11

Underlying earnings (USD million)

69 68

93

Q1 10 Q4 10 Q1 11

Account balances (USD billion)

39 42 43

Q1 10 Q4 10 Q1 11

er Solutions and Pensions

B/DC

Emplo

� Leverage technology

Private & Public

Sustainable earnings growth - Employ yer Solutions and Pensions

Business profile

� Employee benefit products and services

� High growth worksite business model supported by US demographics

� High quality fee based earnings

16

� Some capital markets leverage (fee based)

US pension assets

0%

100%

200%

300%

400%

2000 2001 2002 2003 2004 2005 2006

Cerulli Quantitative Update 2009 – Private & Public D

Strategic priorities

� Continue to aggressively pursue opportunities in the market

� Dominate worksite distribution

� Lead with high quality service and innovative solutions

� Leverage technology

� Promote the Transamerica brand

291%

133%

2007 2008 2009 2010

� AEGON CAGR of 11%

� Industry CAGR of 3%

DB/DC

ss

rong results

illion) as a result of high quality thirdice Support (PASS) product

nt Outsourcing’ drives results in larger case market

11.2%

Pensions

utions and worksite

based busin

US pension business continues to show s

Success in smaller case market (<USD 20administration and Plan Administration Ser

Profit’ and ‘Total Retirem

Withdrawal rates remain historically low a

Includes earnings from pensions, stable value so

Strategic shift toward fee-based busineess – Pensions

� US pension business continues to show st

► Success in smaller case market (<USD 20 m administration and Plan Administration Serv

► Focus on ‘Not-for-Profit’ and ‘Total Retireme (>USD 20 million)

� Withdrawal rates remain historically low at

trong results

million) as a result of high quality third-party vice Support (PASS) product

ent Outsourcing’ drives results in larger case market

t 11.2%

17

4.9 4.3

5.1

Q1 10 Q4 10 Q1 11

* Includes earnings from pensions, stable value sol

Net deposits (USD billion)

Pensions

Gross deposits (USD billion)

2.9

2.0

2.8

Q1 10 Q4 10 Q1 11

lutions and worksite

Underlying earnings* (USD million)

Account balances (USD billion)

67 77

83

Q1 10 Q4 10 Q1 11

69

80 81

Q1 10 Q4 10 Q1 11

ng significant growth opportunities

► ncassurancencassurance

rease productivity

g channel

sales

worth solution

AEGO

Represents two small joint ventures offer

bb

Expanding tied agent recruiting and in

Aggressively growing worksite marketi

Launching affinity and direct marketin

high net

N

Latin America

Argos AEGON and Mongeral AEGON

� Represents two small joint ventures offeri

� Mexico

► Rebranded Argos AEGON

Established new distribution through ba

18

► Established new distribution through ba

► Expanding tied agent recruiting and inc

� Brazil

► Aggressively growing worksite marketin

► Launching affinity and direct marketing

► First-to-market with domestic high net

ing significant growth opportunities

ancassuranceancassurance

crease productivity

ng channel

g sales

worth solution

s and

n

elivers:

profile

growth

Sustainable cash flo

Strong capital positi

AEGON aspires to be a company that

return

Sustainable earning

AEGON aspires to be a company that ddelivers:

� Sustainable cash flow

� Strong capital positio

19

� Improved risk-return

� Sustainable earnings

ws and dividends

on

profile

s growth

2020

Q & A

ations at

Analyst & Investor Conferen

Please contact investor re

21

ce

Analyst & Investor Conference London, June 21- 22, 2011

21

Please contact investor rel ir@aegon.com

lations at

ts1

berts2011

AugusQ2 2011 resuAugust 11, 20

NoveQ3 2011 resuNovember 10,

Upcoming events

June AEGON Analyst & Investor Conference, London June 21-22, 2011

August Q2 2011 resul August 11, 201

22

October Novem Q3 2011 resul November 10,

BoA-ML Conference October 5, 2011

t lts 11

September ING Benelux conference September 14, 2011

mber lts 2011

December AEGON Analyst & Investor Conference, New York City December 6-7, 2011

23

23

Appendix: Q1 2011 results

in runLife reinsurance and BOLI/COLI are included

Results highlighted

Underlying earnings before tax (EUR million)

446 483 452 452 414

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11

24 Note: Life reinsurance and BOLI/COLI are included

Return on Equity (%)

8.9 8.5 9.3 8.7 7.8

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11

Operational free cash flows

EUR million Q1 2011

� Earnings on in force 523

� Return on free surplus 17

� Release of required surplus (1)

� New business strain (275)

� Operational free cash flow 264

54 52 51 49 47 118 114

124 133

141

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11

in run-off businesses and are no longer reported in UEbT, sales and deposits

Strategic shift from spread to fee (USD billion)

� US spread balances � US fee balances

pensions and variable annuities

ported in run

igher provisioning for longevity of EUR 24 million

P 21 million, mainly related to customer redress

anagement, partly offset by investments in Asia

, despite impact from new pension legislation in Hungary

harges and NL longevity provisioning

Americas’ earnings up 2% driven by stron

As of Q1 BOLI/COLI and life reinsurance r

Earnings in the Netherlands lower due to

UK impacted by exceptional charges of G

New markets up on VA Europe and asset

Underlying earnings in the CEE were stabl

Underlying earnings impacted by UK

Underlying earnings impacted by UK c charges and NL longevity provisioning

� Americas’ earnings up 2% driven by strong

► As of Q1 BOLI/COLI and life reinsurance re

� Earnings in the Netherlands lower due to h

� UK impacted by exceptional charges of GB

� New markets up on VA Europe and asset m

► Underlying earnings in the CEE were stable

g pensions and variable annuities

eported in run-off businesses

higher provisioning for longevity of EUR 24 million

BP 21 million, mainly related to customer redress

management, partly offset by investments in Asia

e, despite impact from new pension legislation in Hungary

25

The Netherlands (EUR million)

Americas (USD million)

465 494 474

Q1 10 Q4 10 Q1 11

104 87 81

Q1 10 Q4 10 Q1 11

New Markets (EUR million)

United Kingdom (GBP million)

25

-6

10

Q1 10 Q4 10 Q1 11

46 59 57

Q1 10 Q4 10 Q1 11

0) showed a strong increase in life expectancy

5 million in Q4 2010

rtality is taken through underlying earnings

in line with AEGON’s accounting methodologyogy

only available in 2012

ortality a continuation of the emerging trend of strong0

EUR 20 million on average per quarter for 2011

u of

Higher provisioning for longevity in th

20

off impact on excess capital of EUR 2

m

in line with AEGON’s accounting methodologyin line with AEGON’s accounting methodo

2010 observed mortality tables

2010 observedimprovements in observed mortality for 20

Longevity provisioning is increased b

Centraal Bureau voor de Statistiek / Central Bure

►

Higher provisioning for longevity in thee Netherlands

� New projected mortality tables (2010 – 206

► One-off impact on excess capital of EUR 22

� Provisioning based on actual/observed mo

26

in line with AEGON’s accounting methodol

► CBS* 2005-2010 observed mortality tables

► AEGON assumes for 2005-2010 observed m improvements in observed mortality for 201

Longevity provisioning is increased by

* Centraal Bureau voor de Statistiek / Central Burea

60) showed a strong increase in life expectancy

25 million in Q4 2010

ortality is taken through underlying earnings

logy

only available in 2012

mortality a continuation of the emerging trend of strong 10

y EUR 20 million on average per quarter for 2011

au of Statistics

uring charges and currency movements

and at constant currencies

nued cost reduction initiatives

new distribution capabilities

to customer redress and restructuring

of 2011

ed on restructuring charges in asset management� New markets: o eratin ex enses increased on restructuring charges in asset management

Operating expenses up 3% due to restruc

down by 1% excluding restructuring charge

Americas: declined 2% as a result of cont

The Netherlands: higher on investments i

UK: cost savings offset by charges relate

on track to reduce costs by 25% by the en

New markets: operating expenses increaNew markets: operating expenses increased on restructurin char es in asset mana ement

Continued focus on cost control

� Operating expenses up 3% due to restruct

► down by 1% excluding restructuring charges

� Americas: declined 2% as a result of conti

� The Netherlands: higher on investments in

� UK: cost savings offset by charges related

► on track to reduce costs by 25% by the end

i

� New markets: operating expenses increas

d

turing charges and currency movements

s and at constant currencies

nued cost reduction initiatives

n new distribution capabilities

d to customer redress and restructuring

of 2011

sed on restructuring charges in asset management

27

p g p

Operating expenses

The Netherlands (EUR million)

Americas (USD million)

501 514 492

Q1 10 Q4 10 Q1 11

182 205

189

Q1 10 Q4 10 Q1 11

g g g

New Markets (EUR million)

United Kingdom (GBP million)

95 98 98

Q1 10 Q4 10 Q1 11

133 168

141

Q1 10 Q4 10 Q1 11

oss on strategic allocation funds in the Netherlands

ing in the investment portfolio

S residential mortgage

sion of life reinsurance, BOLI/COLI and lower

ts and positive result run

Underlying earnings to net income development in Q1 2011ment in Q1 2011

Fair value items impacted by exceptional

Investment gains as a result of normal tra

Lower impairments were mostly linked to

off businesses turned positive on incl

Net income benefits from lower impairme

Underlying earnings to net income development in Q1 2011

Impairmen

Underlying earnings to net income develo

� Fair value items impacted by exceptional l

� Investment gains as a result of normal trad

� Lower impairments were mostly linked to U

� Run-off businesses turned positive on inclu

yield transfer to fixed annuities

Net income benefits from lower impairmen

28

Underlying earnings before

tax Q1 11

Fair value items Gains on investments

Impairment charges

414 (85) 91 (62)

Underlying earnings to net income develop (EUR million)

loss on strategic allocation funds in the Netherlands

ding in the investment portfolio

US residential mortgage-backed securities

usion of life reinsurance, BOLI/COLI and lower

nts and positive result run-off businesses

t Other charges Run-off businesses

Income tax Net income Q1 11

(3) 22 (50) 327

pment in Q1 2011

l mortgage

6 million

hree years

Impairments mostly linked to US residenti

Impairments included recoveries of EUR

Impairments at lowest level in almost

� Impairments mostly linked to US residentia

� Impairments included recoveries of EUR 2

Impairments at lowest level in almost t

Impairments (EUR million)

29

325 355 284

330

193

91

146

101 64

93

Q3 08 Q4 08 Q1 09 Q2 09 Q3 09

■ Americas ■ Rest of the World

416 501 385 394 286

al mortgage-backed securities

26 million

three years

143 139 61 85 99

58

69 11

16 7 34

4

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11

212 150 77 92 133 62

R 13 million

sses of EUR 2.7 billion (incl. life reinsurance)

9%

vely impact return on equity

luded in

ed in run

n

of businesses of E

off busin

off businesses of 1

off businesses negat

off businesses is in

BOLI/COLI and Life reinsurance repor

R

BOLI/COLI and Life reinsurance report ted in run-off businesses as of Q1

� Net earnings from run-of businesses of EU

� Average capital allocated to run-off busine

► Return on capital of run-off businesses of 1.

� Capital intensive run-off businesses negati

► Capital allocated to run-off businesses is inc

UR 13 million

esses of EUR 2.7 billion (incl. life reinsurance)

.9%

ively impact return on equity

cluded in RoE calculations, but run-off earnings are not

30

Run-off businesses Q1 2011

Ru

� Payout annuities

� Institutional spread-based business

� BOLI/COLI

� Life reinsurance

un-off period

> 20 years

~ 5 years

> 10 years

~ 15 years

new life sales, new premiums accident & health

eposits

in the Netherlands and strong sales in Central

the UK due to

deposits, offset by lower asset management

lands

mortgages and increased life expectancy

in the Netherlands

Sales composite introduced, consisting of

and general insurance and 1/10 of gross

New life sales stable; higher pension sale

and Eastern Europe offset by a decline in

Growth in US pension and variable annuit

deposits and saving deposits in the Nethe

VNB down mainly due to lower spreads o

based businesses

Sales growth in fee-based businesses – key area of focus

� Sales composite introduced, consisting of

and general insurance and 1/10 of gross d

� New life sales stable; higher pension sales

and Eastern Europe offset by a decline in

� Growth in US pension and variable annuity

deposits and saving deposits in the Nether

� VNB down mainly due to lower spreads on

new life sales, new premiums accident & health

deposits

s in the Netherlands and strong sales in Central

the UK due to repricing

y deposits, offset by lower asset management

rlands

n mortgages and increased life expectancy

31

in the Netherlands

New life sales (EUR million)

Sales (EUR million)

1,443 1,506 1,411

Q1 10 Q4 10 Q1 11

504 530

501

Q1 10 Q4 10 Q1 11

Accident & health and general insurance (EUR million)

Gross deposits (EUR billion)

7.8 7.8 7.4

Q1 10 Q4 10 Q1 11

162 195

172

Q1 10 Q4 10 Q1 11

at USD 154 million

single premium contract

ult of strong recurring life production after successful

strong franchise

Americas’ sales were level compared to 201

The Netherlands up 5% as a result of a larg

as higher group pension sale

New Markets: strong growth in CEE as a re

New life sales demonstrate continued

New life sales demonstrate continued strong franchise

� New life sales stable at EUR 501 million

► Americas’ sales were level compared to 2010

► The Netherlands up 5% as a result of a large

► UK decreased as higher group pension sales

► New Markets: strong growth in CEE as a res refocus from pension to life products

0 at USD 154 million

e single premium contract

s were offset by lower annuity sales due to repricing

sult of strong recurring life production after successful

32

154 158 154

Q1 10 Q4 10 Q1 11

62

113

65

Q1 10 Q4 10 Q1 11

New life sales

The Netherlands (EUR million)

Americas (USD million)

235 190 211

Q1 10 Q4 10 Q1 11

66 75 76

Q1 10 Q4 10 Q1 11

New Markets (EUR million)

United Kingdom (GBP million)

ariable annuities partly offset by lower inflow of retail

nd lower asset management inflows

o managed outflows of stable value solutions

idual savings &

Strong US pension deposits and growth of

Lower savings deposits in the Netherlands

Net outflow of EUR 2.1 billion mainly due

Indi

� Gross deposits of EUR 7.4 billion

► Strong US pension deposits and growth of v mutual funds

► Lower savings deposits in the Netherlands a

� Net outflow of EUR 2.1 billion mainly due t

Continued strong gross deposits

33

Pensions Life Indiv

4.3 0.5

Gross deposits Q1 2011 (EUR billions)

variable annuities partly offset by lower inflow of retail

and lower asset management inflows

to managed outflows of stable value solutions

vidual savings & retirement

Asset management Gross deposits

1.6 1.0 7.4

lower due to strategic change in business mix

annuities in the US

ortality assumptions in the Netherlands

UK

sion legislation in Hungary and margin pressure forby growth in Turkey

alue of new business

Value of new business of EUR 118 million

Higher margins in life, pensions and variabl

Lower margins on mortgages and updated

Decrease of margins and lower sales in th

New markets decreased due to adverse peVariable Annuities Europe, only partly offse

New Markets represents 19% of the total

Value of new business

� Value of new business of EUR 118 million,

► Higher margins in life, pensions and variable

► Lower margins on mortgages and updated m

► Decrease of margins and lower sales in the

► New markets decreased due to adverse pen Variable Annuities Europe, only partly offset

� New Markets represents 19% of the total v

� Internal rate of return amounted to 19%

e

, lower due to strategic change in business mix

e annuities in the US

mortality assumptions in the Netherlands

UK

nsion legislation in Hungary and margin pressure for t by growth in Turkey

value of new business

34

� Internal rate of return amounted to 19%

Value of new business

61 71

86

Q1 10 Q4 10 Q1 11

49 42

23

Q1 10 Q4 10 Q1 11

The Netherlands (EUR million)

Americas (USD million)

12

7 8

Q1 10 Q4 10 Q1 11

31 25 23

Q1 10 Q4 10 Q1 11

New Markets (EUR million)

United Kingdom (GBP million)

% to USD 474 million, mainly due to cost

e annuities businesses and improved financial

sult of continued cost reduction initiatives

remium sales through the agency channel were

universal life sales in the bank channel

. n as pensions and variable annuities inflows weren as pensions and variable annuities inflows were

tions and fixed annuities deposits

sales)

Underlying earnings before tax increased

savings, growth of the pension and variab

r

New life sales stable as higher recurring

offset by discontinuance of single premiu

Gross deposits increased to USD 7.7 billiGross deposits increased to USD 7.7 billi

only partly offset by lower stable value sol

New lifmillio

Americas

� Underlying earnings before tax increased 2

savings, growth of the pension and variabl

markets

� Operating expenses decreased 2% as a re

growing the business

� New life sales stable as higher recurring p

offset by discontinuance of single premium

� Gross deposits increased to USD 7 7 billio

p

2% to USD 474 million, mainly due to cost

le annuities businesses and improved financial

esult of continued cost reduction initiatives while

remium sales through the agency channel were

m universal life sales in the bank channel

on as pensions and variable annuities inflows were

35

� Gross deposits increased to USD 7.7 billio

only partly offset by lower stable value solu

Underlying earnings before tax (USD million)

New life (USD million

465 494 474

Q1 10 Q4 10 Q1 11

154

Q1 10

7,476

7,689 7,691

Q1 10 Q4 10 Q1 11

on as pensions and variable annuities inflows were

utions and fixed annuities deposits

e sales n)

Gross deposits (USD million)

158 154

Q4 10 Q1 11

to EUR 81 million as a result of higher

sult of investments in new distribution capabilities

due to a large single premium pension contract

lion due to lower saving deposits as a result of

sales)

Underlying earnings before tax decrease

Operating expenses increased 4% as a r

New life sales increased to EUR 65 millio

Gross deposits decreased to EUR 462 mi

New lifmillio

The Netherlands

� Underlying earnings before tax decreased

provisioning for longevity

� Operating expenses increased 4% as a re

� New life sales increased to EUR 65 million

� Gross deposits decreased to EUR 462 mil

less competitive interest rates

d to EUR 81 million as a result of higher

esult of investments in new distribution capabilities

n due to a large single premium pension contract

llion due to lower saving deposits as a result of

36

104 87 81

Q1 10 Q4 10 Q1 11

62

Q1 10

Underlying earnings before tax (EUR million)

New life (EUR million

113

65

Q4 10 Q1 11

743

490 462

Q1 10 Q4 10 Q1 11

e sales n)

Gross deposits (EUR million)

to GBP 10 million

nd growth of the business

GBP 21 million mainly related to the customer redress

to customer redress program and restructuring

5% by the end of 2011

pension sales more than offset by lower annuity� New life sales down 10%; increased rou pension sales more than offset by lower annuity

sales)

Underlying earnings before tax decrease

Life earnings improved due to cost savings

Pensions recorded a loss due to a charge o

Operating expenses slightly increased du

On track to reduce operating expenses by

New life sales down 10%; increased grouNew life sales down 10%; increased grou ension sales more than offset b lower annuit

New lifmillio

United Kingdom

� Underlying earnings before tax decreased

► Life earnings improved due to cost savings a

► Pensions recorded a loss due to a charge of program

� Operating expenses slightly increased due

► On track to reduce operating expenses by 2

� New life sales down 10%; increased group

37

g p

sales due to product repricing

25

-6

10

Q1 10 Q4 10 Q1 11

235

Q1 10

Underlying earnings before tax (GBP million)

New life (GBP million

d to GBP 10 million

and growth of the business

f GBP 21 million mainly related to the customer redress

e to customer redress program and restructuring

25% by the end of 2011

p pension sales more than offset by lower annuityp p y y

190 211

Q4 10 Q1 11

32

21 17

Q1 10 Q4 10 Q1 11

e sales n)

Gross deposits (GBP million)

o EUR 59 million as a result of Variable Annuities

et by investments in Asia

rowth in Central & Eastern Europe

set management inflows

2010” in the insurance industry in China

d Investor” in the Netherlands

sales)

Underlying earnings before tax increased

Europe and asset management, partly off

New life sales improved due to business

Gross deposits decreased due to lower a

CNOOC “Best Growing Brand of

rou

New lifmillio

New Markets

� Underlying earnings before tax increased t

Europe and asset management, partly offs

� New life sales improved due to business g

� Gross deposits decreased due to lower as

� AEGON-CNOOC “Best Growing Brand of

� AEGON Asset management “Best All-roun

to EUR 59 million as a result of Variable Annuities

set by investments in Asia

growth in Central & Eastern Europe

sset management inflows

2010” in the insurance industry in China

nd Investor” in the Netherlands

38

46 59 59

Q1 10 Q4 10 Q1 11

66

Q1 10

Underlying earnings before tax (EUR million)

New life (EUR million

1,593 1,541 1,267

Q1 10 Q4 10 Q1 11

75 76

Q4 10 Q1 11

e sales n)

Gross deposits (EUR million)

g units

wn on EUR 1.125 billion payment to Dutch State partly

lows driven by favorable market conditions and

on

illion

Excess capital of EUR 2.4 billion in operati

Holding excess capital of EUR 1.3 billion, d

force support strong cash

Continued strong excess capital posit

Operational free cash flow EUR 264

� Excess capital of EUR 3.7 billion

► Excess capital of EUR 2.4 billion in operatin

► Holding excess capital of EUR 1.3 billion, do offset by EUR 0.9 billion equity issuance

� Earnings on in-force support strong cash f

lower impairments

Continued strong excess capital positi

Excess capital development Q1 2011

39

(EUR billion)

2.1

1.7

Operational free cash flow EUR 264 m

Excess capital

Q4 2010

Return on

free

surplus

Earnings on in-force

Release of

required

surplus

3.8 ~0 0.5 ~0

ng units

own on EUR 1.125 billion payment to Dutch State partly

flows driven by favorable market conditions and

ion

1.3

2.4

Holding

Operating

units

million

New

business strain

Equity

issuance

Repurchase core capital securities

Other Excess capital

Q1 2011

(0.3) 0.9 (1.1) (0.2) 3.7

rterly basis going forward

s

flow of EUR1.0

Operational cash flow disclosure on a qu

business

Target: improve 2010 operational free cas

Operational free cash flows

� Operational cash flow disclosure on a qua arterly basis going forward

� During the first quarter, earnings on the in--force remained strong

� Investments in new business as expected

► Shift in business mix

► Higher sales volumes for key fee-businesse es

� Target: improve 2010 operational free cashh flow of EUR1.0-1.2 billion by 30% by 2015

40

EUR million Q1 2011

� Earnings on in force 523

� Return on free surplus 17

� Release of required surplus (1)

� New business strain (275)

� Operational free cash flow 264

epurchase of core capital securities (EUR 750m +

:

arnings, up

ted by full repurchase of core capital securities

of total capital by end 2012

ovement core cap ta rat o

epurchase

ore capitalecurities

Core capital ratio negatively impacted by

EUR 375m premium) almost fully offset b

Other items, mainly consisting of retained

Q2 2011 core capital expected to be impa

Aim to achieve core capital of at least 75

Core capital ratio stable at 75%

� Core capital ratio negatively impacted by r

EUR 375m premium) almost fully offset by

► Equity issuance of EUR 903 million

► Other items, mainly consisting of retained e

� Q2 2011 core capital expected to be impac

� Aim to achieve core capital of at least 75%

M i l i

41

Dec 31, 2010 Equity issuance R

c s

75% 4%

Movement core capital ratio

repurchase of core capital securities (EUR 750m +

y:

earnings, up-streamed dividends and holding expenses

cted by full repurchase of core capital securities

% of total capital by end 2012

Repurchase

core capital securities

Other March 31, 2011

(5)% 1% 75%

lion at end of first quarter 2011, down versus Q4

on premium on the repurchase of core capital

ing revaluation reserves

eaker US dollar

Shareholders’ equity development Q1 2011

evaluation

Positive revaluation reserve of EUR 0.7 bi

Other changes included the EUR 375 mill

Higher average shareholders’ equity exclu

Shareholders’ equity down mainly on

� Positive revaluation reserve of EUR 0.7 bil

2010 as a result of higher interest rates

� Other changes included the EUR 375 milli

� Return on equity of 7.8%, as a result of:

► Lower net underlying earnings

► Higher average shareholders’ equity exclud

Shareholders’ equity down mainly on w

42

Shareholders’ equity development Q1 2011 (EUR billion)

Q4 2010 Shareholders' equity

Equity issuance Net income r

17.2 0.9 0.3

* Other include coupons on perpetuals and other

llion at end of first quarter 2011, down versus Q4

ion premium on the repurchase of core capital

ding revaluation reserves

weaker US dollar

Change in revaluation

reserves

Change in foreign currency

translation reserve

Other * Q1 2011 Shareholders’ equity

(0.3) (0.8) (0.5) 16.9

e to positive performance of in

arkets and strengthening of currencies

.9 billion

a ue o new u ness

Total embedded value increased mainly d

result of cost savings, improved financial

Total embedded value up 6% to EUR 1

� Total embedded value increased mainly du

result of cost savings, improved financial m

Total embedded value up 6% to EUR 18

EUR million, except per share data

Embedded value life insurance

Total embedded value

Total embedded value per common share

V l f b si

43

Embedded value life insurance 2010

Value of new business

■ Americas

■ The Netherlands

■ United Kingdom

■ New markets

57%

25%

11%

7%

ue to positive performance of in-force business as a

markets and strengthening of currencies

8.9 billion

2010 2009 ΔΔΔΔ

25,756 23,296 11%

18,891 17,770 6%

10.38 9.65 8%

555 767 (28)%555 767 (28)%

Value of new business 2010

41%

26%

12%

21%

million

s a result of cost savings, improved financial

gainst the euro

riven by strengthening of persistency in Americas and

to negative economic assumption changes and

ed hedges in the Netherlands

e driven by operating returns

arkets

ct

Value of new business in 2010 of EUR 55

force portfolio

markets and strengthening of currencies

Changes in operating assumptions mainly

Lower interest rates in the Netherlands le

rela

Increase embedded value life insuran

Capital

imp

Increase embedded value life insuranc ce driven by operating returns

� Value of new business in 2010 of EUR 555 5 million

� Positive performance of in-force portfolio a as a result of cost savings, improved financial

markets and strengthening of currencies a against the euro

► Changes in operating assumptions mainly d driven by strengthening of persistency in Americas and increasing longevity in the Netherlands

� Lower interest rates in the Netherlands led d to negative economic assumption changes and

were offset by results on interest rate-relat ted hedges in the Netherlands

44

Embedded value life insurance movement (EUR billion)

2009 Value of new business

In-force performance

Long-term investment

return variance

EV operating

return

Capital m

impa 23.3 0.6 0.8 1.9

Change in economic

assumption

Currency Other Capital movements

2010

markets

act (1.3) 1.2 0.09 (0.7) 25.8

an sovereigns actively reducedLimited exposure to peripheral Europ

45

Limited exposure to peripheral Europe ean sovereigns actively reduced

45 * At fair value

EUR million *

Dec 31,2010 March. 31, 2011

Portugal 32 30 ▼

Greece 45 5 ▼

Ireland 32 29 ▼

Italy 112 84 ▼

Spain 904 866 ▼

ard

s

for

Americ

General account investments roll-forw

General account investment roll-forward

EUR billion America

Opening balance December 31, 2010 93.6

Net in- and outflow (1.0)

46

Unrealized / realized results 0.2

Foreign exchange (5.4)

Closing balance March 31, 2011 87.4

ward

as The Netherlands United Kingdom New Markets

37.2 9.3 2.8

0.7 (0.1) 0.1

(0.4) (0.1) 0.0

0.0 (0.2) (0.0)

37.5 8.9 2.9

ricas

5,507

7,018

2,297

e en a mor gage oans

5,396

7,411

Am

, - - ,

Investments general account

AEGON

INVESTMENTS GENERAL ACCOUNT

amounts in EUR millions, except for the impairment data Ame

Cash / Treasuries / Agencies 1

Investment grade corporates 3

High yield (and other) corporates

Emerging markets debt

Commercial MBS

Residential MBS

Non-housing related ABS

Subtotal 7

R sid ti l t l

47

Residential mortgage loans

Commercial mortgage loans

Total mortgages

Convertibles & preferred stock

Common equity & bond funds

Private equity & hedge funds

Total equity like

Real estate

Other

Investments general account (excluding policy loans) 8

Policyholder loans

Investments general account 8

Impairments in basis points (quarterly)

UNAUDITED

March 31, 2011

ericas The

Netherlands United

Kingdom New

Markets Holdings and other TOTAL

15,507 9,274 1,857 1,237 320 28,195

37,018 5,498 5,007 762 - 48,285

2,639 134 248 18 - 3,039

1,477 58 57 - - 1,592

6,234 2 357 4 - 6,597

5,149 1,294 431 183 - 7,057

4,273 1,061 864 19 - 6,217

72,297 17,321 8,821 2,223 320 100,982

54 15 603 360 16 017 54 15,603 - 360 - 16,017

8,417 47 - 1 - 8,465

8,471 15,650 - 361 - 24,482

262 15 - - - 277

1,155 481 60 76 (3) 1,769

1,421 481 - - - 1,902

2,838 977 60 76 (3) 3,948

1,186 2,038 - - - 3,224

604 1,447 8 259 - 2,318

85,396 37,433 8,889 2,919 317 134,954

2,015 15 - 7 - 2,037

87,411 37,448 8,889 2,926 317 136,991

7 - - 6 - 5

mericas

– - - -

Impairments by asset class

AEGON general account investments Q1 2011 impairments / (recoveries) by country unit - IFRS basis (pre-

EUR millions A

ABS – Housing

ABS – Non-housing

CMBS

RMBS

Subtotal structured assets

Corporate – private

48

Corporate private

Corporate – public

Subtotal corporate

Residential mortgage loans

Commercial mortgage loans

Subtotal mortgage loans

Commercial paper

Total credit impairments

Common equity impairments

Total

-DAC, pre-tax)

Americas NL UK New Markets Total

- - - - -

(0) (1) - - (1)

(14) - - - (14)

63 - - - 63

49 (1) - - 48

(1) - - - (1) (1) (1)

(0) - - - (0)

(1) - - - (1)

- 1 - 2 3

4 - - - 4

4 1 - 2 7

- - - - -

4 1 - 2 7

6 2 - - 8

58 2 - 2 62

7 bps

000

g Principles (DAP)inancial Reporting Standards (IFRS)

91

Q1 2011 credit impairments amount t

prior to 2005 are based on Dutch Accountiare based on International

� Q1 2011 credit impairments amount to

► Annualized level of 28 bps

Credit losses in the US trending down

US credit losses in bps of fixed income assets

49

44 44 37

27

9

25

1 2 4

8

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2

average of 33 bps

since 1990

Periods prior to 2005 are based on Dutch Accountin Periods 2005 and later are based on International F

120

o 7 bps

17

64

82

48

17

-6 -2

2

91

52

28

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

ng Principles (DAP) Financial Reporting Standards (IFRS)

loan portfolio*

1.7

eighted)USD million ** %)

loans, and mortgage loan originated bond portfolios

0

0

0

0

0

0

0

0

USD 12.0 billion commercial mortgag

Sound debt service coverage ratio of

((%

Includes commercial mortgage loans, agricultur

� USD 12.0 billion commercial mortgage

� Sound debt service coverage ratio of

� Average LTV of 66%

� Own origination

Commercial mortgage loans

CML net impairments - IFRS (USD million)**

W (%

50

( ) (

* Includes commercial mortgage loans, agriculture ** Included in overall impairments *** IFRS Carrying Values as of March 31, 2011

22

16

23 27

6

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11

1

2

3

4

5

6

7

8

e loan portfolio*

1.7

Weighted average loan-to-value by property type *** %))

e loans, and mortgage loan originated bond portfolios NOTE: Other commercial includes B notes, Mezz, Participation, and other commercial loans.

0

10

20

30

40

50

60

70

80

Apartment $2.2B

Industrial $1.9B

Office $3.7B

Retail $2.5B

Other commercial

$1.2B

Agricultural $0.5B

12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 3/31/2011

minal tax rate, amongst others due to:

011

► Tax exem t income

ed by:

o

impacted by:

ffective from 1 April 2011, tax benefit

Actual income tax can deviate from the n

Reconciliation of effective tax rate Q1

► Cross border intercom an reinsurance

Americas actual income tax mainly impac

United Kingdom actual income tax mainly

Reduction corporate tax rate to 26%

Reconciliation of effective tax rate Q1 2

p p y

� Actual income tax can deviate from the no

► Tax exempt income

Reconciliation of effective tax rate Q1 2011

EUR million Americas

Income before tax 324

Nominal tax rate 35.00% (113)

Actual income tax (61)

Net income 263

ominal tax rate, amongst others due to:

► Cross border intercompany reinsurance

2011

The Netherlands United Kingdom New Markets/ Holdings Total

46 34 (27) 377

25.00% (12) 26.50% (9) NM 10 (124)

(7) 20 (2) (50)

39 54 (29) 327

► Tax credits ► Policyholder tax UK (offsetting)

► Valuation allowances for tax losses ► Other items

� Americas actual income tax mainly impact ted by:

► Tax benefit of EUR 17 million related t to cross border intercompany reinsurance transaction

� United Kingdom actual income tax mainly impacted by:

► Reduction corporate tax rate to 26% e effective from 1 April 2011, tax benefit

of EUR 23 million

51

life reinsurance businessTransaction highlights of the divested

Transaction highlights of the divested

Gross written premium 2010 �

Net underlying earnings 2010 �

Cash proceeds �

Capital release �

Total after-tax consideration �

Prepaid cost of reinsurance after tax �

IFRS book value 2010 �

52

Prepaid cost of reinsurance before tax �

Amortization period �

Annual amortization expense before tax � Earnings of retained business �

Retained business IFRS book value 2010 �

Reinsurance reserve financing �

�

life reinsurance business

USD 2.2 billion

USD 102 million

USD 0.9 billion

USD 0.5 billion

USD 1.4 billion

USD 0.3 billion

USD 1.7 billion

USD ~0.6 billion

15 years

USD ~40 million per annum (in run-off businesses)

Around nil (in run-off businesses)

USD 0.4 billion

Financing obligation reduced by approximately 50%

The remainder will gradually reduce in 15 years as reinsurance contracts mature

tions

The Netherlands

For questions please contact Investor Rel

For questions please contact Investor Rela

+31 70 344 8305

ir@aegon.com

P.O. Box 85

2501 CB The Hague

WWW.AEGON.COM

The Netherlands

ations

The reconc

report

y 12, 2011

sinesse

the

tion

Priv

ould, is confident, will, and similar expressions as they relate to our company. These statements are not guarantees of futu

b

c

ecline in th

rod

� Changes affecting interest rate levels and continuing low or rapidly changing interest rate levels;

of

ion may

actio

pita

abili

m and the US Securities and Exchange Commis

ny

any su

GAAP financial measures: underlying earnings before tax and value of new busine

our Condensed consolidated interim financial statements. Value of new business is not based on IFRS, which are used to

calculate value of new business differently than other companies. Please see AEGON’s Embedded Value Report dated

information, provide a meaningful measure for the investment community to evaluate AEGON’s business relative to the b

This document contains certain information about our results and financial condition in USD for the Americas and GBP for

presented on a constant currency basis eliminates the effects of changes in currency exchange rates. None of this inform

looking statements as defined in the U

performance and involve risks, uncertainties and assumptions that are difficult to predict. We undertake no obligation to p

statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from exp

The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting

Changes affecting mortality, morbidity, persistence and other factors that may impact the profitability of our insurance

Changes in laws and regulations, particularly those affecting our operations, the products we sell, and the attractivene

Lowering of one or more of our debt ratings issued by recognized rating organizations and the adverse impact such a

Lowering of one or more of insurer financial strength ratings of our insurance subsidiaries and the adverse impact su

The effect of the European Union’s Solvency II requirements and other regulations in other jurisdictions affecting the

The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including our

Amsterd

as of the date of this document. Except as required by any applicable law or regulation, the company expressly disclaims

change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which

Disclaimer

Cautionary note regarding non-GAAP measures

This document includes certain non-GAAP financial measures: underlying earnings before tax and value of new business. ss. The reconciliation of underlying earnings before tax to the most comparable IFRS measure is provided in Note 3 "Segment information" of

our Condensed consolidated interim financial statements. Value of new business is not based on IFRS, which are used to report AEGON's primary financial statements and should not viewed as a substitute for IFRS financial measures. We may define and

calculate value of new business differently than other companies. Please see AEGON’s Embedded Value Report dated Maay 12, 2011 M for an explanation of how we define and calculate. AEGON believes that these non-GAAP measures, together with the IFRS

information, provide a meaningful measure for the investment community to evaluate AEGON’s business relative to the bu usinesses of our peers.

Local currencies and constant currency exchange rates

This document contains certain information about our results and financial condition in USD for the Americas and GBP for the United Kingdom, because those businesses operate and are managed primarily in those currencies. Certain comparative information

presented on a constant currency basis eliminates the effects of changes in currency exchange rates. None of this informa ation is a substitute for or superior to financial information about us presented in EUR, which is the currency of our 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 S 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, wwould, is confident, will, and similar expressions as they relate to our company. These statements are not guarantees of future

performance and involve risks, uncertainties and assumptions that are difficult to predict. We undertake no obligation to pu ublicly 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 expe ectations 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 our fixed income investment portfolios; and

► The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting d decline in the value of equity and debt securities we hold;

� The frequency and severity of insured loss events;

� Changes affecting mortality, morbidity, persistence and other factors that may impact the profitability of our insurance p products;

� 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;

� Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets;

� Changes in laws and regulations, particularly those affecting our operations, the products we sell, and the attractiveness ss of certain products to our consumers;

� Regulatory changes relating to the insurance industry in the jurisdictions in which we operate;

� 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 our debt ratings issued by recognized rating organizations and the adverse impact such act ction may have on our ability to raise capital and on our liquidity and financial condition;

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

� The effect of the European Union’s Solvency II requirements and other regulations in other jurisdictions affecting the ca capital we are required to maintain;

� Litigation or regulatory action that could require us to pay significant damages or change the way we do business;

� Customer responsiveness to both new products and distribution channels;

� Competitive, legal, regulatory, or tax changes that affect the distribution cost of or demand for our products;

� The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including our ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions;

� Our failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving initiatives;

� Our inability to obtain consent from the Dutch Central Bank to repurchase our Core Capital Securities; and

� The non-fulfillment of the conditions precedent underlying the agreement to divest Transamerica Reinsurance.

Further details of potential risks and uncertainties affecting the company are described in the company’s filings with Euronext Amsterda am and the US Securities and Exchange Commission, including the Annual Report on Form 20-F. These forward-looking statements speak only

as of the date of this document. Except as required by any applicable law or regulation, the company expressly disclaims a any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any

change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

54