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AEGON Improves Underlying Earnings and Capital Position in Q2 2009
THE HAGUE, The Netherlands, Aug. 13 /PRNewswire-FirstCall/ --
Capital Position Strengthened
- EUR 1.6 billion in capital freed up in first half 2009, above full year
target
- Excess capital(a) of EUR 3.5 billion by end June
- Revaluation reserves improve by EUR 3.4 billion, or 40%, a result of
narrowing credit spreads
- IGD(b) solvency ratio increases to 202%
- No interim dividend payment for 2009 - dividend policy remains
unchanged
Improved earnings
- Underlying earnings before tax of EUR 404 million, substantial
improvement compared with the past two quarters
- Underlying earnings include lower investment income as result of
de-risking measures
- Fair value items of EUR (31) million include EUR 202 million net gain
from higher equity markets, offset by a loss on interest rate hedges
- Net loss of EUR 161 million, including one-time EUR 385 million loss
from sale of Taiwanese life activities
- Impairments of EUR 393 million, approximately half from US housing
market related assets
- Cost savings well on track to achieve EUR 150 million target
Continued profitable sales, despite difficult environment
- New life sales of EUR 469 million, helped by an increase in US retail
sales
- Net deposits(c) of EUR 857 million, due to strong sales of annuities and
pensions, and improved persistency
- Value of new business of EUR 181 million, with overall increase in
rates of return
Statement Alex Wynaendts, CEO
"Ensuring that AEGON maintains a strong capital position continues to be front and center in our actions. In the first half of the year, we have exceeded our full-year capital release target. We are also pleased with the further improvement, quarter over quarter, to our underlying earnings, despite the impact of our de-risking measures on investment income. Our strong capital position has allowed us to begin reversing in part the impact of these measures by investing cash in higher yielding, quality assets. We have not declared an interim dividend, however our dividend policy remains unchanged. Our decision to pay a full-year dividend will continue to depend on cash flows and AEGON's capital position at the end of the year.
"We are well on track to achieve our cost savings target for 2009. At the
same time, we are working to identify additional cost saving measures with the
determination not to undermine the high level of service our customers have
come to expect. We are especially pleased by the continued confidence of our
customers, as demonstrated by solid retail sales in
"We remain convinced that our strategic objectives to strengthen AEGON's capital position, reduce costs and implement actions to safeguard customer trust are the right ones in the current environment and for the long term. AEGON has weathered the turmoil of the past year and is committed to being in a strong position to maximize the opportunities ahead."
KEY PERFORMANCE INDICATORS
Notes Q2 Q1 % Q2
amounts in EUR millions 2009 2009 2008
Underlying earnings before tax 1 404 (22) N.M. 596
Net income 2 (161) (173) 7 276
New life sales 3 469 543 (14) 729
Gross deposits excluding
Institutional Guaranteed
Products 4 5,647 6,393 (12) 5,650
Value of new business (VNB) 181 201 (10) 212
Return on equity 5 10.3% (3.3%) N.M. 11.2%
- TABLE CONTINUED -
% Ytd Ytd %
amounts in EUR millions 2009 2008
Underlying earnings
before tax (32) 382 1,254 (70)
Net income N.M. (334) 429 N.M.
New life sales (36) 1,012 1,415 (28)
Gross deposits excluding
Institutional Guaranteed
Products - 12,040 11,037 9
Value of new business (VNB) (15) 382 398 (4)
Return on equity (8) 3.5% 12.2% (71)
a) Excess capital over S&P AA capital adequacy requirements
b) The calculation of the IGD (Insurance Group Directive) capital surplus
and ratio are based on Solvency I capital requirements on IFRS for
entities within the EU (Pillar I for AEGON UK), and local regulatory
solvency measurements for non-EU entities. Specifically, required
capital for the life insurance companies in the US is calculated as two
times the upper end of the Company Action Level range (200%) as applied
by the National Association of Insurance Commissioners in the US. The
methodology to calculate the ratio for the Netherlands has been
adjusted to include the excess value above the technical provisions,
calculated according to the local regulatory liability adequacy test,
as of Q2 2009. The comparable IGD ratio as per end of Q1 2009 would
have been 193%.
c) Excluding institutional guaranteed products
Last year, AEGON set out three long-term strategic priorities:
1. To reallocate capital toward businesses with higher growth and return
prospects;
2. To improve growth and returns from existing businesses;
3. To manage AEGON as an international company.
Subsequently, AEGON identified and announced three priorities to counter the challenges of the current global financial crisis and position the company for future growth:
- Focus on capital preservation and accelerate the capital release
program;
- EUR 150 million in cost saving measures for 2009;
- Develop contingency plans for possible deterioration in financial
markets.
AEGON further aims to reduce its earnings sensitivity to financial markets to realize more stable earnings.
Portfolio review
AEGON is continuing to review its portfolio of businesses to ensure they meet the criteria outlined in the company's strategy. Recent developments:
- Sale of life business in Taiwan, decreasing AEGON's long-term interest
rate exposure and substantially lowering required economic capital;
- Withdrawal from Group Risk market in the UK,
releasing EUR 55 million in capital over next three years.
Consistent with its strategy to allocate capital to businesses and
geographies that offer attractive growth and higher return prospects, AEGON
completed its acquisition of a 50% stake in Mongeral,
Cost measures
- Cost saving measures well on track to achieve the full-year EUR150
million target;
- Operating expenses down 5% in the first half of 2009, excluding impact
from restructuring charges, increased employee benefit plan expenses
and currency effects.
Capital preservation
- A total of EUR 1.6 billion in capital released from AEGON's businesses
in H1, above target of EUR 1.5 billion for full year;
- AEGON started to invest cash in higher yielding quality assets, which
will in part reverse earnings impact from de-risking measures;
- AEGON aims to maintain an amount of excess capital substantially above
AA capital adequacy requirements.
Capital management
Excess capital
- Excess capital at the end of June 2009 totaled EUR 3.5 billion over AA
capital adequacy requirements, up EUR 0.8 billion from the end of Q1
2009;
- The positive impact from improved capital markets, the company's
capital release program and statutory earnings were partly offset by
impairments and rating migration in the Americas. At the end of Q2
2009, AEGON had an IGD solvency ratio of 202%;
- Because of uncertain economic conditions, AEGON still expects an
elevated level of asset impairments in its investment portfolio in 2009
compared with its long-term assumptions. Impairments negatively
impacted the company's capital position in Q2 2009, reducing excess
capital by approximately EUR 0.3 billion. In addition, rating migration
in the Americas' asset portfolio was limited to a EUR 0.1 billion
increase in capital requirements.
IFRS core capital
- At the end of June 2009, core capital, excluding the revaluation
reserves, totaled EUR 15.8 billion, 75% of the total capital base, well
above AEGON's minimum target of 70%7,8). Core capital, including the
revaluation reserves, was EUR 10.6 billion, consisting of EUR 7.6
billion in shareholders' equity and a further EUR 3 billion in
convertible core capital securities. AEGON's revaluation reserves
improved by 40% during Q2 2009, or EUR 3.4 billion, to a negative EUR
5.1 billion.
The improved revaluation reserves were the main driver behind an increase in shareholders' equity. The revaluation reserves improved primarily due to the impact of narrowing credit spreads on bond values.
Dividend
- AEGON has not declared an interim dividend to common shareholders for
2009. The company's dividend policy, however, remains unchanged, i.e.
the payment of a dividend depends on the capital position and cash
flows of the company. A decision on a final dividend will be announced
with the Q4 2009 results.
Risk management
Equity market sensitivities
- During Q2 2009, AEGON implemented a macro hedge program for equity
exposure related to its retail variable annuity portfolio to reduce the
sensitivity of AEGON's capital position to equity market movements.
This program, a combination of out-of-the-money put options and linear
hedge instruments, is in place for twelve months, but can be extended
for a longer period. The hedge instruments will be carried at fair
value through profit or loss and will be reported under fair value
items.
FINANCIAL OVERVIEW
EUR millions Q2 2009 Q1 2009 % Q2 2008
Underlying earnings before
tax by line of business
Life and protection 266 239 11 252
Individual savings and
retirement products 62 (313) N.M. 115
Pensions and asset
management 83 42 98 129
Institutional products 29 89 (67) 99
Life reinsurance 13 (23) N.M. -
Distribution 1 6 (83) 8
General insurance 12 (1) N.M. 20
Interest charges and other (72) (63) (14) (38)
Share in net results
of associates 10 2 N.M. 11
Underlying earnings before tax 404 (22) N.M. 596
Over/(under) performance
of fair value items (31) (197) 84 48
Operating earnings before tax 373 (219) N.M. 644
Operating earnings before
tax by line of business
Life and protection 270 179 51 264
Individual savings and
retirement products 88 (306) N.M. 139
Pensions and asset management 35 (135) N.M. 97
Institutional products 131 13 N.M. 155
Life reinsurance 61 59 3 3
Distribution 1 6 (83) 8
General insurance 12 (1) N.M. 20
Interest charges and other (235) (36) N.M. (53)
Share in net results
of associates 10 2 N.M. 11
Operating earnings before tax 373 (219) N.M. 644
Gains/(losses) on investments 35 173 (80) (212)
Impairment charges (393) (386) (2) (98)
Other income/(charges) (353) (23) N.M. 9
Income before tax (338) (455) 26 343
Income tax 177 282 (37) (67)
Net income (161) (173) 7 276
Net underlying earnings 357 (14) N.M. 437
Net operating earnings 331 (163) N.M. 479
Underlying earnings
geographically
Americas 280 (68) N.M. 441
The Netherlands 129 72 79 116
United Kingdom 20 7 186 48
Other countries 47 30 57 29
Holding and other (72) (63) (14) (38)
Underlying earnings
before tax 404 (22) N.M. 596
Operating earnings
geographically
Americas 461 (100) N.M. 541
The Netherlands 76 (118) N.M. 79
United Kingdom 22 4 N.M. 48
Other countries 49 31 58 29
Holding and other (235) (36) N.M. (53)
Operating earnings
before tax 373 (219) N.M. 644
Commissions and expenses 1,504 1,618 (7) 1,515
of which operating
expenses 814 842 (3) 772
- TABLE CONTINUED -
Ytd Ytd
EUR millions % 2009 2008 %
Underlying earnings before
tax by line of business
Life and protection 6 505 504 -
Individual savings and retirement products (46) (251) 231 N.M.
Pensions and asset management (36) 125 250 (50)
Institutional products (71) 118 207 (43)
Life reinsurance N.M. (10) 43 N.M.
Distribution (88) 7 17 (59)
General insurance (40) 11 37 (70)
Interest charges and other (89) (135) (55) (145)
Share in net results of associates (9) 12 20 (40)
Underlying earnings before tax (32) 382 1,254 (70)
Over/(under) performance of fair value items (165) (228) (393) 42
Operating earnings before tax (42) 154 861 (82)
Operating earnings before tax
by line of business
Life and protection 2 449 477 (6)
Individual savings and retirement products (37) (218) 81 N.M.
Pensions and asset management (64) (100) 78 N.M.
Institutional products (15) 144 100 44
Life reinsurance N.M. 120 34 N.M.
Distribution (88) 7 17 (59)
General insurance (40) 11 37 (70)
Interest charges and other N.M. (271) 17 N.M.
Share in net results of associates (9) 12 20 (40)
Operating earnings before tax (42) 154 861 (82)
Gains/(losses) on investments N.M. 208 (126) N.M.
Impairment charges N.M. (779) (130) N.M.
Other income/(charges) N.M. (376) (45) N.M.
Income before tax N.M. (793) 560 N.M.
Income tax N.M. 459 (131) N.M.
Net income N.M. (334) 429 N.M.
Net underlying earnings (18) 343 940 (64)
Net operating earnings (31) 168 654 (74)
Underlying earnings geographically
Americas (37) 212 919 (77)
The Netherlands 11 201 229 (12)
United Kingdom (58) 27 93 (71)
Other countries 62 77 68 13
Holding and other (89) (135) (55)(145)
Underlying earnings before tax (32) 382 1,254 (70)
Operating earnings geographically
Americas (15) 361 645 (44)
The Netherlands (4) (42) 38 N.M.
United Kingdom (54) 26 93 (72)
Other countries 69 80 68 18
Holding and other N.M. (271) 17 N.M.
Operating earnings before tax (42) 154 861 (82)
Commissions and expenses (1) 3,122 2,931 7
of which operating expenses 5 1,656 1,555 6
Overview
AEGON reported a net loss of
Underlying earnings before tax amounted to
Fair value items contributed a negative
Net income during the second quarter of 2009 was negatively impacted by
impairment charges of
Net income in the second quarter of 2009 also included a tax gain of
Underlying earnings before tax
In Q2 2009, underlying earnings before tax for the company totaled
- US employee benefit plan accounting mismatch of EUR (15) million:
- Restructuring charges of EUR (18) million;
- Accelerated amortization of DPAC related to universal life in Canada of
EUR (23) million;
- Reserve adjustments of EUR 20 million.
Underlying earnings in the Americas improved significantly compared with Q1 2009 when lower equity markets led to a strengthening in minimum guarantee reserves and accelerated amortization of deferred policy acquisition costs (DPAC).
Compared with Q2 2008 however, earnings from the Americas decreased to
accelerated amortization of DPAC in the Life and Protection line (
In
Underlying earnings in the
Underlying earnings from Other countries, which exclude earnings from the
Taiwanese life business this quarter, amounted to
Net income
Net income for the second quarter of 2009 included a total
underperformance of fair value items of
In the Americas, fair value items showed an overperformance of
In Q2 2009, fair value items included a
Three bonds issued by AEGON N.V. and their hedge instruments are held at
fair value through profit or loss. In previous quarters, the widening of
AEGON's credit spread had a positive contribution to earnings. In Q2 2009
however, AEGON's credit spread narrowed substantially, leading to a loss of
Gains on investments
Gains on investments during the second quarter of 2009 amounted to
Impairment charges
Impairments during the second quarter of 2009 totaled
Tax
Net income in the second quarter of 2009 included a tax gain of
The loss from the sale of AEGON's Taiwanese life activities did not lead to tax relief on earnings for the second quarter of 2009.
Commissions and expenses
Compared with Q1 2009, commissions and expenses decreased by 7% to
Compared with Q2 2008, commissions and expenses were down 5% on a constant
currency basis. On the same basis, operating expenses were up 1% as an
increase in employee benefit plan expenses and restructuring charges offset
further cost savings. Operating expenses also increased as a result of
acquisitions in Central &
Sales
EUR millions Q2 2009 Q1 2009 % Q2 2008
New life sales
Life single premiums 1,504 2,025 (26) 2,880
Life recurring premiums annualized 318 341 (7) 441
Total recurring plus 1/10 single 469 543 (14) 729
New premium production accident
and health insurance 146 164 (11) 141
New premium production
general insurance 11 12 (8) 16
Gross deposits (on and off balance)
by line of business
Fixed annuities 928 1,628 (43) 875
Variable annuities 949 714 33 717
Saving deposits 779 580 34 688
Retail mutual funds 671 642 5 908
Pensions and asset management 2,319 2,829 (18) 2,461
Institutional guaranteed products 1,115 1,848 (40) 3,481
Life reinsurance 1 - N.M. 1
Total gross deposits 6,762 8,241 (18) 9,131
Total gross deposits excl.
institutional guaranteed products 5,647 6,393 (12) 5,650
Net deposits (on and off balance)
by line of business
Fixed annuities 145 688 (79) (24)
Variable annuities 412 78 N.M. (102)
Saving deposits 43 (67) N.M. 114
Retail mutual funds 23 (98) N.M. 416
Pensions and asset management 246 506 (51) 180
Institutional guaranteed products (1,432) (2,354) 39 401
Life reinsurance (12) (16) 25 (14)
Total net deposits (575) (1,263) 54 971
Total net deposits excl.
institutional guaranteed products 857 1,091 (21) 570
- TABLE CONTINUED -
Ytd Ytd
EUR millions % 2009 2008 %
New life sales
Life single premiums (48) 3,529 5,637 (37)
Life recurring
premiums annualized (28) 659 851 (23)
Total recurring
plus 1/10 single (36) 1,012 1,415 (28)
New premium production
accident and health
insurance 4 310 307 1
New premium
production general
insurance (31) 23 32 (28)
Gross deposits
(on and off balance)
by line of business
Fixed annuities 6 2,556 1,181 116
Variable annuities 32 1,663 1,402 19
Saving deposits 13 1,359 1,336 2
Retail mutual funds (26) 1,313 1,472 (11)
Pensions and asset
management (6) 5,148 5,644 (9)
Institutional
guaranteed products (68) 2,963 6,730 (56)
Life reinsurance - 1 2 (50)
Total gross deposits (26) 15,003 17,767 (16)
Total gross deposits
excl. institutional
guaranteed products - 12,040 11,037 9
Net deposits (on and
off balance) by line
of business
Fixed annuities N.M. 833 (819) N.M.
Variable annuities N.M. 490 (254) N.M.
Saving deposits (62) (24) 42 N.M.
Retail mutual funds (94) (75) 587 N.M.
Pensions and asset
management 37 752 1,350 (44)
Institutional
guaranteed products N.M. (3,786) (794) N.M.
Life reinsurance 14 (28) (29) 3
Total net deposits N.M. (1,838) 83 N.M.
Total net deposits
excl. institutional
guaranteed products 50 1,948 877 122
REVENUE GENERATING INVESTMENTS
June 30, Mar. 31,
2009 2009 %
Revenue generating investments (total) 341,815 334,280 2
Investments general account 131,533 133,130 (1)
Investments for account of policyholders 112,107 103,312 9
Off balance sheet investments third parties 98,175 97,838 -
Sales
Total new life sales in Q2 2009, excluding
Total new life sales in the Americas were in line with Q1 2009. Retail life sales increased 7% from Q1 2009 reflecting expanded distribution, particularly in the term life insurance market, offset by lower sales of both BOLI/COLI and life reinsurance.
In
New life sales in the
In Other countries new life sales, excluding
In Central &
With the exception of
Deposits
Total gross deposits of
with Q1 2009. The decline was due mainly to lower fixed annuity deposits in the Americas - the result of a reduction in AEGON's crediting rates since the end of Q1 2009. Pension deposits in the Americas remained strong, but were down compared with the previous quarter, a reflection of seasonal factors. Sales of variable annuities were up by 33% compared with Q1 2009 due to improved markets.
Gross deposits in Other countries amounted to
Net deposits, excluding institutional guaranteed products, totaled
Value of new business
Value of new business (VNB) amounted to
FINANCIAL OVERVIEW, Q2 2009 GEOGRAPHICALLY
United
Americas Kingdom The
USD GBP Americas Netherlands
Underlying earnings
before tax by line of
business
217 11 Life and protection 159 75
Individual savings and
79 - retirement products 66 (10)
Pensions and asset
17 8 management 13 57
41 - Institutional products 29 -
17 - Life reinsurance 13 -
- (2) Distribution - 3
- - General insurance - 4
Interest charges and other
Share in net results of
- - associates - -
Underlying earnings before
371 17 tax 280 129
Over/(under) performance
240 2 of fair value items 181 (53)
Operating earnings
611 19 before tax 461 76
Operating earnings before
tax by line of business 228 11
Life and protection 167 71
110 - Individual savings and
retirement products 90 (10)
15 10 Pensions and asset
management 12 8
174 - Institutional products 131 -
84 - Life reinsurance 61 -
- (2) Distribution - 3
- - General insurance - 4
Interest charges and other
Share in net results of
- - associates - -
Operating earnings before
611 19 tax 461 76
(4) 25 Gains/(losses) on
investments (3) (42)
(449) (31) Impairment charges (330) (28)
- 30 Other income/(charges) (1) -
158 43 Income before tax 127 6
214 (25) Income tax 155 (2)
372 18 Net income 282 4
343 21 Net underlying earnings 259 93
505 22 Net operating earnings 380 54
- TABLE CONTINUED -
Holding,
other
United Other activities & Total
Kingdom countries eliminations EUR
Underlying earnings
before tax by line
of business
Life and protection 14 18 - 266
Individual savings and
retirement products - 6 - 62
Pensions and asset management 8 5 - 83
Institutional products - - - 29
Life reinsurance - - - 13
Distribution (2) - - 1
General insurance - 8 - 12
Interest charges and other (72) (72)
Share in net results of associates - 10 - 10
Underlying earnings before tax 20 47 (72) 404
Over/(under) performance of
fair value items 2 2 (163) (31)
Operating earnings before tax 22 49 (235) 373
Operating earnings before tax
by line of business
Life and protection 14 18 - 270
Individual savings and
retirement products - 8 - 88
Pensions and asset management 10 5 - 35
Institutional products - - - 131
Life reinsurance - - - 61
Distribution (2) - - 1
General insurance - 8 - 12
Interest charges and other (235) (235)
Share in net results of associates - 10 - 10
Operating earnings before tax 22 49 (235) 373
Gains/(losses) on investments 28 2 50 35
Impairment charges (35) - - (393)
Other income/(charges) 33 (385) - (353)
Income before tax 48 (334) (185) (338)
Income tax (28) (9) 61 177
Net income 20 (343) (124) (161)
Net underlying earnings 24 38 (57) 357
Net operating earnings 25 40 (168) 331
- Underlying earnings before tax of USD 371 million, a substantial
improvement on recent quarters
- Net income includes USD 240 million contribution from fair value items
driven by tightening credit spreads and lower equity market
volatilities
- Impairments of USD 449 million, primarily on mortgage-backed assets and
corporate bonds
- Retail life sales up compared to Q1 2009; net deposits of USD 1.0
billion (excluding institutional guaranteed products)
Overview
Earnings from the Americas in Q2 2009 were up significantly compared to Q1
2009 as financial markets improved during the quarter. Compared with last year
however, earnings from the Americas decreased to
Net impairments amounted to
Net income also included a tax gain related to cross border intercompany
reinsurance transactions between
Retail life sales increased 7% over Q1 2009 reflecting expanded distribution, particularly in the term life insurance market.
Underlying earnings before tax
AEGON reported underlying earnings before tax in the Americas for Q2 2009
of
Earnings from Life & Protection amounted to
business,
- Individual Savings & Retirement earnings totaled USD 79 million. The
decline in earnings compared to Q2 2008 was the result primarily of
lower fee income in the variable annuity and mutual fund business, as
well as a narrowing of spreads. Earnings in Q2 2009 included USD 10
million from increased employee benefit plan expenses;
- Pensions & Asset Management earnings decreased to USD 17 million from
USD 50 million in Q2 2008, a result mainly of lower fees from reduced
asset balances and increased employee benefit plan expenses (USD 10
million);
- Earnings from the Institutional business amounted to USD 41 million,
down from USD 155 million in Q2 2008. Earnings last year had benefited
from a widening in spreads due to a decline in short-term rates. In Q2
2009, earnings were severely impacted by narrowing in spreads as a
result of a higher asset allocation to cash following the decision to
scale down AEGON's institutional spread business;
- In the Life Reinsurance business underlying earnings amounted to USD 17
million. Earnings in Q2 2008 included a USD 49 million reserve
strengthening charge. Earnings in Q2 2009 were affected by adverse
mortality experience (USD 10 million), as well as lower investment
spreads.
Net income
AEGON reported net income in the Americas for Q2 2009 of USD 372 million.
Fair value items showed an overperformance of
Net income in the Americas included
Net income included a tax gain related to cross border intercompany
reinsurance transactions (
Commissions and expenses
Total commissions and expenses were down 5% in Q2 2009 compared to the
same period last year. Q2 2009 operating expenses were up 4% due to an
increase in employee benefit plan expenses of
Sales and deposits
Total new life sales in the Americas were in line with Q1 2009. Retail life sales increased 7% over Q1 2009 reflecting expanded distribution, particularly in the term life insurance market, offset by lower sales of both BOLI/COLI and life reinsurance.
Sales of accident and health products were down 10% compared with Q2 2008, the result partly of a decision to discontinue the auto credit business.
Total gross deposits, excluding institutional guaranteed products, were
down 14% compared to Q1 2009. Net deposits, excluding institutional guaranteed
products, totaled
Following the reduction in AEGON's crediting rates since the end of Q1 2009, fixed annuities sales were down, in line with expectations. Sales of variable annuities rose by 37% due to improved market conditions. Retail mutual fund sales recovered from the low levels seen during the previous quarters, a result of higher equity markets.
Sales of retirement plans in the pension business continued to be strong, particularly taking into account the impact of lower financial markets. Institutional guaranteed products sales were low, following AEGON's decision early 2009 to scale down its institutional spread based business.
Value of new business
Value of new business in the Americas amounted to
Please refer to page 30 for more detailed information on VNB.
Revenue-generating investments
AEGON's total revenue-generating investments in the Americas at the end
of
AMERICAS - EARNINGS
USD millions Q2 Q1 % Q2 % Ytd Ytd %
2009 2009 2008 2009 2008
Underlying earnings before tax by
line of business
Life 118 153 (23) 214 (45) 271 373 (27)
Accident and health 99 68 46 94 5 167 209 (20)
Life and protection 217 221 (2) 308 (30) 438 582 (25)
Fixed annuities 60 86 (30) 105 (43) 146 200 (27)
Variable annuities 29 (480) N.M. 68 (57) (451) 138 N.M.
Retail mutual funds (10) (9) (11) 3 N.M. (19) 7 N.M.
Individual savings and
retirement products 79 (403) N.M. 176 (55) (324) 345 N.M.
Pensions and asset
Management 17 10 70 50 (66) 27 95 (72)
Institutional
guaranteed products 30 105 (71) 141 (79) 135 282 (52)
BOLI/COLI 11 12 (8) 14 (21) 23 35 (34)
Institutional products 41 117 (65) 155 (74) 158 317 (50)
Life reinsurance 17 (30) N.M. 1 N.M. (13) 66 N.M.
Share in net results of
Associates - (3) N.M. 1 N.M. (3) 2 N.M.
Underlying earnings
before tax 371 (88) N.M. 691 (46) 283 1,407 (80)
Over/(under)
performance of fair
value items 240 (42) N.M. 141 70 198 (419) N.M.
Operating earnings
before tax 611 (130) N.M. 832 (27) 481 988 (51)
Operating earnings before
tax by line of business
Life 132 120 10 232 (43) 252 367 (31)
Accident and health 96 56 71 98 (2) 152 207 (27)
Life and protection 228 176 30 330 (31) 404 574 (30)
Fixed annuities 81 41 98 133 (39) 122 141 (13)
Variable annuities 39 (426) N.M. 69 (43) (387) (34) N.M.
Retail mutual funds (10) (9) (11) 3 N.M. (19) 7 N.M.
Individual savings and
retirement products 110 (394) N.M. 205 (46) (284) 114 N.M.
Pensions and asset
Management 15 (3) N.M. 54 (72) 12 92 (87)
Institutional 166 8 N.M. 218 (24) 174 119 46
guaranteed products
BOLI/COLI 8 10 (20) 17 (53) 18 34 (47)
Institutional products 174 18 N.M. 235 (26) 192 153 25
Life reinsurance 84 76 11 7 N.M. 160 53 N.M.
Share in net results of
Associates - (3) N.M. 1 N.M. (3) 2 N.M.
Operating earnings
before tax 611 (130) N.M. 832 (27) 481 988 (51)
Gains/(losses) on
Investments (4) 36 N.M. (73) 95 32 (144) N.M.
Impairment charges (449) (370) (21) (126) N.M. (819) (147) N.M.
Other income/(charges) - 1 N.M. - N.M. 1 - N.M.
Income before tax 158 (463) N.M. 633 (75) (305) 697 N.M.
Income tax 214 290 (26) (179) N.M. 504 (282) N.M.
Net income 372 (173) N.M. 454 (18) 199 415 (52)
Net underlying earnings 343 (57) N.M. 502 (32) 286 1,024 (72)
Net operating earnings 505 (90) N.M. 616 (18) 415 727 (43)
Commissions and 1,262 1,311 (4) 1,328 (5) 2,573 2,497 3
Expenses of which
operating expenses 577 562 3 555 4 1,139 1,102 3
For the amounts in euro see the Financial Supplement.
AMERICAS - SALES
USD millions Q2 2009 Q1 2009 % Q2 % Ytd Ytd %
2008 2009 2008
New life sales
Life single
premiums 138 91 52 218 (37) 229 459 (50)
Life recurring
premiums
annualized 170 173 (2) 240 (29) 343 478 (28)
Total recurring
plus 1/10
single 184 182 1 262 (30) 366 524 (30)
Life 137 128 7 184 (26) 265 371 (29)
BOLI/COLI - 2 N.M. 6 N.M. 2 20 (90)
Life
Reinsurance 47 52 (10) 72 (35) 99 133 (26)
Total recurring
plus 1/10
single 184 182 1 262 (30) 366 524 (30)
New premium
production
accident and health
insurance 193 203 (5) 215 (10) 396 452 (12)
Gross deposits (on and off
balance) by line of business
Fixed annuities 1,292 2,120 (39) 1,349 (4) 3,412 1,808 89
Variable
annuities 1,071 780 37 1,047 2 1,851 2,021 (8)
Retail mutual
Funds 513 307 67 886 (42) 820 1,659 (51)
Pensions and
asset
management 2,623 3,169 (17) 3,130 (16) 5,792 7,382 (22)
Institutional
guaranteed
products 1,548 2,407 (36) 5,433 (72) 3,955 10,303 (62)
Life
Reinsurance 1 - N.M. 1 - 1 3 (67)
Total gross 7,048 8,783 (20) 11,846 (41)15,831 23,176 (32)
deposits
Total gross
deposits
excl. institutional
guaranteed
products 5,500 6,376 (14) 6,413 (14)11,876 12,873 (8)
Net deposits (on and off
balance) by line of business
Fixed annuities 216 896 (76) (62) N.M. 1,112 (1,254) N.M.
Variable
annuities 353 (40) N.M. (228) N.M. 313 (507) N.M.
Retail mutual
funds 104 (256) N.M. 474 (78) (152) 721 N.M.
Pensions and
asset
management 331 1,053 (69) 489 (32) 1,384 2,133 (35)
Institutional
guaranteed
products (1,989)(3,065) 35 576 N.M.(5,054) (1,216) N.M.
Life
reinsurance (18) (20) 10 (21) 14 (38) (44) 14
Total net (1,003)(1,432) 30 1,228 N.M.(2,435) (167) N.M.
deposits
Total net deposits
excl. institutional
guaranteed
products 986 1,633 (40) 652 51 2,619 1,049 150
REVENUE GENERATING INVESTMENTS
June Mar.
30, 31,
2009 2009 %
Revenue
generating
investments
(total) 295,325 279,399 6
Investments
general account 123,131 117,934 4
Investments for
account of
policyholders 62,000 55,791 11
Off balance
sheet
investments
third parties 110,194 105,674 4
For the amounts in euro see the Financial Supplement.
- Underlying earnings before tax increase to EUR 129 million
- Life sales of EUR 32 million; decline from Q1 due to volatility in
group pension market
- Value of new business rises to EUR 36 million, a result of high margins
on mortgage sales
Overview
AEGON reported underlying earnings of
Fair value items underperformed long-term expectations. Impairments,
primarily on bonds, totaled
Underlying earnings before tax
- Earnings from Life & Protection amounted to EUR 75 million, up from Q2
2008 primarily because of a EUR 20 million one-time release of
provisions and higher investment income in the Life business;
- The Savings business reported a loss of EUR 10 million, due to
continued pressure on margins and volumes from fierce competition in
the savings market;
- Earnings from Pensions & Asset Management amounted to EUR 57 million,
slightly down from earnings in Q2 2008, which had included a one-time
release of accruals. Technical results improved compared to Q2 2008,
but lower asset balances resulted in lower fee income;
- Earnings from Distribution amounted to EUR 3 million, down from Q2 2008
because of a slowdown in the real estate market;
- General insurance earnings totaled EUR 4 million, lower than Q2 2008
due to higher claims.
Net income
Fair value items in Q2 2009 included a
Impairments of
Commissions and expenses
Commissions and expenses were down 8%, while operating expenses decreased by 7%, both compared to Q2 2008. Operating expenses were down as a result of cost initiatives taken during the quarter, e.g. a reduction in staff and in project-related expenses.
Sales and deposits
Pension sales slowed significantly during the second quarter of 2009 and proved volatile after the standstill in the Dutch group pension market during the third and fourth quarters of last year. The first quarter of 2009 had seen strong group pension sales. Sales of single premium individual life products were down compared to Q1 2009, following increased pricing competition in the immediate annuity market.
Net mortgage production in the second quarter of 2009 amounted to
Gross deposits were up 42% compared with Q1 2009. Net deposits in the savings business showed an improvement from the previous quarter, because of seasonal factors.
Value of new business
The value of new business increased to
Please refer to page 30 for more detailed information on VNB.
Revenue-generating investments
By the end of
THE NETHERLANDS - EARNINGS
EUR millions Q2 Q1 % Q2 % Ytd Ytd %
2009 2009 2008 2009 2008
Underlying earnings before tax
by line of business
Life 68 44 55 29 134 112 61 84
Accident and health 7 11 (36) 4 75 18 12 50
Life and protection 75 55 36 33 127 130 73 78
Saving products (10) (9) (11) - N.M. (19) 1 N.M.
Individual savings
and retirement
products (10) (9) (11) - N.M. (19) 1 N.M.
Pensions and asset
management 57 26 119 60 (5) 83 111 (25)
Distribution 3 9 (67) 8 (63) 12 19 (37)
General insurance 4 (9) N.M. 9 (56) (5) 19 N.M.
Share in net results
of associates - - N.M. 6 N.M. - 6 N.M.
Underlying earnings
before tax 129 72 79 116 11 201 229 (12)
Over/(under)
performance of fair
value items (53) (190) 72 (37) (43) (243) (191) (27)
Operating earnings
before tax 76 (118) N.M. 79 (4) (42) 38 N.M.
Operating earnings before
tax by line of business
Life 64 18 N.M. 27 137 82 40 105
Accident and health 7 11 (36) 4 75 18 12 50
Life and protection 71 29 145 31 129 100 52 92
Saving products (10) (9) (11) - N.M. (19) 1 N.M.
Individual savings
and retirement
products (10) (9) (11) - N.M. (19) 1 N.M.
Pensions and asset
Management 8 (138) N.M. 25 (68) (130) (59) (120)
Distribution 3 9 (67) 8 (63) 12 19 (37)
General insurance 4 (9) N.M. 9 (56) (5) 19 N.M.
Share in net results
of associates - - N.M. 6 N.M. - 6 N.M.
Operating earnings 76 (118) N.M. 79 (4) (42) 38 N.M.
before tax
Gains/(losses) on
Investments (42) 110 N.M. (115) 63 68 (39) N.M.
Impairment charges (28) (78) 64 (4) N.M. (106) (21) N.M.
Income before tax 6 (86) N.M. (40) N.M. (80) (22) N.M.
Income tax (2) 45 N.M. 45 N.M. 43 46 (7)
Net income 4 (41) N.M. 5 (20) (37) 24 N.M.
Net underlying
Earnings 93 55 69 92 1 148 184 (20)
Net operating
Earnings 54 (87) N.M. 64 (16) (33) 42 N.M.
Commissions and 274 307 (11) 299 (8) 581 609 (5)
expenses of which
operating
expenses 192 217 (12) 207 (7) 409 426 (4)
THE NETHERLANDS - SALES
EUR millions Q2 2009 Q1 2009 % Q2 2008 %
New life sales
Life single premiums 145 391 (63) 443 (67)
Life recurring premiums annualized 17 23 (26) 24 (29)
Total recurring plus 1/10 single 32 62 (48) 68 (53)
Life 19 23 (17) 23 (17)
Pensions 13 39 (67) 45 (71)
Total recurring plus 1/10 single 32 62 (48) 68 (53)
New premium production accident
and health insurance 3 7 (57) 3 -
New premium production
general insurance 6 7 (14) 7 (14)
Gross deposits (on and off balance)
by line of business
Saving deposits 779 580 34 688 13
Pensions and asset management 62 11 N.M. 80 (23)
Total gross deposits 841 591 42 768 10
Net deposits (on and off balance)
by line of business
Saving deposits 43 (67) N.M. 114 (62)
Pensions and asset management (73) (113) 35 68 N.M.
Total net deposits (30) (180) 83 182 N.M.
- TABLE CONTINUED -
EUR millions Ytd 2009 Ytd 2008 %
New life sales
Life single premiums 536 888 (40)
Life recurring premiums annualized 40 50 (20)
Total recurring plus 1/10 single 94 139 (32)
Life 42 54 (22)
Pensions 52 85 (39)
Total recurring plus 1/10 single 94 139 (32)
New premium production accident
and health insurance 10 9 11
New premium production general insurance 13 15 (13)
Gross deposits (on and off balance)
by line of business
Saving deposits 1,359 1,336 2
Pensions and asset management 73 127 (43)
Total gross deposits 1,432 1,463 (2)
Net deposits (on and off balance)
by line of business
Saving deposits (24) 42 N.M.
Pensions and asset management (186) 104 N.M.
Total net deposits (210) 146 N.M.
REVENUE GENERATING INVESTMENTS
June 30, Mar. 31,
2009 2009 %
Revenue generating investments (total) 65,772 63,427 4
Investments general account 33,907 32,875 3
Investments for account of policyholders 20,065 19,357 4
Off balance sheet investments third parties 11,800 11,195 5
- Underlying earnings before tax of GBP 17 million, down primarily due to
lower fund related charges in the pension business
- New life sales decline 16% compared to Q1 2009, driven by annuities
- VNB down compared to Q1 2009 following change in product mix
ADD: /FIRST AND FINAL ADD -- LNTH001 -- AEGON N.V. Earnings/
Overview
Lower bond and equity markets compared to Q2 2008 led to a decline in
underlying earnings from the
Please note that results from variable annuities are included in the Other countries section of the results release from Q1 2009.
Underlying earnings before tax
Underlying earnings before tax declined to
- Earnings from Life & Protection totaled GBP 11 million in the second
quarter of 2009, in line with last year. Growth in the annuity and
protection business and favorable mortality results were offset by one-
time charges related to the withdrawal from the group employee benefit
business and lower investment income;
- Earnings from Pensions & Asset Management amounted to GBP 8 million, a
decline of GBP 19 million, due to a decrease in fund related charges as
a result of lower equity and bond markets. Compared to Q1 2009 however,
earnings were higher, due to an improvement in financial markets during
the second quarter;
- Distribution activities in Q2 2009 experienced a loss of GBP 2 million,
largely because of continued difficult market conditions for mortgage
and investment products.
Net income
Net income amounted to
Commissions and expenses
Total commissions and expenses in the second quarter of 2009 were up 2%
compared to Q2 2008. Commissions were lower because of a change in AEGON's
business mix in the
Sales and deposits
New life sales amounted to
Compared to Q2 2008, sales were down across most products. Group pension sales in Q2 2008 included one large case. Sales from investment bonds suffered from tax changes and worsening market conditions. New life sales in Q2 2008 had also included European variable annuities, which are now reported as deposits in Other countries from Q1 2009.
Value of new business
Value of new business in Q2 2009 decreased by 24% to
Please refer to page 30 for more detailed information on VNB.
Revenue-generating investments
At the end of
UNITED KINGDOM - EARNINGS
GBP millions Notes Q2 2009 Q1 2009 % Q2 2008 %
Underlying earnings
before tax by line
of business
Life 11 7 57 11 -
Life and protection 11 7 57 11 -
Pensions and asset management 8 3 167 27 (70)
Distribution (2) (3) 33 - N.M.
Underlying earnings before tax 17 7 143 38 (55)
Over/(under) performance of
fair value items 2 (3) N.M. - N.M.
Operating earnings before tax 19 4 N.M. 38 (50)
Operating earnings before tax
by line of business
Life 11 7 57 11 -
Life and protection 11 7 57 11 -
Pensions and asset management 10 - N.M. 27 (63)
Distribution (2) (3) 33 - N.M.
Operating earnings before tax 19 4 N.M. 38 (50)
Gains/(losses) on investments 25 9 178 - N.M.
Impairment charges (31) (13) (138) (9) N.M.
Other income/(charges) 9 30 (22) N.M. 6 N.M.
Income before tax 43 (22) N.M. 35 23
Income tax attributable to
policyholder return (30) 22 N.M. (6) N.M.
Income before income tax on
shareholders return 13 - N.M. 29 (55)
Income tax on shareholders
return 5 5 - (3) N.M.
Net income 18 5 N.M. 26 (31)
Net underlying earnings 21 10 110 31 (32)
Net operating earnings 22 8 175 31 (29)
Commissions and expenses 175 159 10 172 2
of which operating expenses 106 100 6 102 4
For the amounts in euro see the Financial Supplement.
- TABLE CONTINUED -
GBP millions Ytd 2009 Ytd 2008 %
Underlying earnings before tax
by line of business
Life 18 19 (5)
Life and protection 18 19 (5)
Pensions and asset management 11 55 (80)
Distribution (5) (2) (150)
Underlying earnings before tax 24 72 (67)
Over/(under) performance of fair value items (1) - N.M.
Operating earnings before tax 23 72 (68)
Operating earnings before tax
by line of business
Life 18 19 (5)
Life and protection 18 19 (5)
Pensions and asset management 10 55 (82)
Distribution (5) (2) (150)
Operating earnings before tax 23 72 (68)
Gains/(losses) on investments 34 2 N.M.
Impairment charges (44) (9) N.M.
Other income/(charges) 8 (35) N.M.
Income before tax 21 30 (30)
Income tax attributable to policyholder return (8) 35 N.M.
Income before income tax on shareholders return 13 65 (80)
Income tax on shareholders return 10 (8) N.M.
Net income 23 57 (60)
Net underlying earnings 31 61 (49)
Net operating earnings 30 61 (51)
Commissions and expenses 334 329 2
of which operating expenses 206 200 3
For the amounts in euro see the Financial Supplement.
UNITED KINGDOM - SALES
GBP millions Notes Q2 2009 Q1 2009 % Q2 2008
New life sales 10
Life single premiums 1,017 1,317 (23) 1,728
Life recurring premiums annualized 122 133 (8) 166
Total recurring plus 1/10 single 223 265 (16) 339
Life 41 71 (42) 59
Pensions 182 194 (6) 280
Total recurring plus 1/10 single 223 265 (16) 339
Gross deposits (on and off balance)
by line of business
Pensions and asset management 134 181 (26) 192
Total gross deposits 134 181 (26) 192
Net deposits (on and off balance)
by line of business
Pensions and asset management 26 (257) N.M. (207)
Total net deposits 26 (257) N.M. (207)
- TABLE CONTINUED -
GBP millions Ytd 2009 Ytd 2008 %
New life sales
Life single premiums 2,334 3,226 (28)
Life recurring premiums annualized 255 307 (17)
Total recurring plus 1/10 single 488 630 (23)
Life 112 114 (2)
Pensions 376 516 (27)
Total recurring plus 1/10 single 488 630 (23)
Pensions and asset management 315 304 4
Total gross deposits 315 304 4
Net deposits (on and off balance)
by line of business
Pensions and asset management (231) (248) 7
Total net deposits (231) (248) 7
REVENUE GENERATING INVESTMENTS
June 30, Mar. 31,
2009 2009 %
Revenue generating investments (total) 47,136 44,208 7
Investments general account 5,858 5,157 14
Investments for account of policyholders 39,313 37,188 6
Off balance sheet investments third
parties 1,965 1,863 5
For the amounts in euro see the Financial Supplement.
- Underlying earnings before tax increase to EUR 47 million
- Net income of EUR 42 million, excluding one-time book loss of EUR 385
million on sale of Taiwanese life activities
- New life sales increase 9%* to EUR 47 million compared to Q1 2009
- Continued strong deposits driven by variable annuity sales in Europe
and pensions business in Central & Eastern Europe
- Value of new business increases 10%* to EUR 34 million, a result of
strong performance in Spain
Overview
Underlying earnings from Other countries increased 34%* to
Other countries new life sales increased* compared to Q1 2009, mainly as a
result of higher recurring premium sales in both
Underlying earnings before tax
Underlying earnings before tax from Other countries increased compared to
Q2 2008 to
- Earnings from Life & Protection increased to EUR 18 million mainly as a
result of higher surrender charges, a reduction in expenses in CEE,
further business growth at AEGON's joint ventures in Spain
and the sale of its life activities in Taiwan;
- The inclusion of variable annuities in Europe and continued growth at
the asset management joint venture in China led to earnings of EUR 6
million from Individual Savings and Retirement products in Q2 2009;
- Pensions & Asset Management earnings increased to EUR 5 million as a
result of the introduction earlier this year of DPAC in the pension
business in Hungary and Poland;
- Earnings from General Insurance decreased to EUR 8 million as a result
of higher claim ratios. Despite this increase, however, these ratios
remained well within pricing assumptions;
- The share of earnings from associate companies increased as a result of
higher contribution from La Mondiale Participations in France.
Net income
Other countries recorded a net loss of
Commissions and expenses
Commissions and expenses decreased 4%* as higher operating expenses were more than offset by lower commissions and higher deferred expenses. Commissions decreased slightly* as a result of lower sales, while expanding operations led to an increase in expenses.
Sales and deposits
Market turmoil continued to affect sales compared to last year. New life
sales totaled
- In CEE both single and recurring premium production increased compared
to Q1 2009, resulting in total new life sales of EUR 18 million for the
quarter;
- In Asia, new life sales rose* to EUR 6 million. In China, new life
sales increased as a result of strong recurring premium product sales,
especially in the broker and bank channels;
- New life sales in Spain were up 9% to EUR 24 million, primarily as a
result of increased recurring premium production at AEGON's joint
ventures with savings banks compared to Q1 2009. New life sales from
the partnership with CAM, which is not consolidated in AEGON's
accounts, amounted to EUR 57 million (on a 100% basis);
- Sales in the highly competitive non-life insurance market in Hungary
remained stable compared with Q1 2009 at EUR 5 million.
Total gross deposits from Other countries decreased 7%* from Q1 2009 to
EUR 653 million in Q2 2009 compared with Q1 2009.
- Variable annuity deposits in Europe increased to EUR 162 million as
sales in the United Kingdom were significantly higher as a result of
lessening competition and the continued attractiveness of guaranteed
products to customers;
- Retail mutual fund deposits declined to EUR 292 million, mainly as a
result of increased competition;
- Pensions and Asset Management deposits increased to EUR 199 million,
due to continued growth in the pension business in CEE.
Net deposits continued to be positive and totaled
Value of new business
Value of new business from Other countries in Q2 2009 totaled
With the sale of AEGON's insurance operations in
At 40%, the internal rate of return from Other countries remains at a high level.
Please refer to page 30 for more detailed VNB information.
Revenue-generating investments
In Q2 2009, revenue-generating investments increased 14%* to
* Excluding Taiwan
OTHER COUNTRIES - EARNINGS
EUR millions Q2 2009 Q1 2009 % Q2 2008 %
Underlying earnings before
tax by line of business
Life 17 7 143 6 183
Accident and health 1 1 - 1 -
Life and protection 18 8 125 7 157
Variable annuities 2 - N.M. (2) N.M.
Saving products - 1 N.M. 1 N.M.
Retail mutual funds 4 4 - 4 -
Individual savings and
retirement products 6 5 20 3 100
Pensions and asset management 5 5 - 3 67
General insurance 8 8 - 11 (27)
Share in net results of
associates 10 4 150 5 100
Underlying earnings before tax 47 30 57 29 62
Over/(under) performance of
fair value items 2 1 100 - N.M.
Operating earnings before tax 49 31 58 29 69
Operating earnings before
tax by line of business
Life 17 7 143 6 183
Accident and health 1 1 - 1 -
Life and protection 18 8 125 7 157
Variable annuities 4 1 N.M. (2) N.M.
Saving products - 1 N.M. 1 N.M.
Retail mutual funds 4 4 - 4 -
Individual savings and
retirement products 8 6 33 3 167
Pensions and asset management 5 5 - 3 67
General insurance 8 8 - 11 (27)
Share in net results of
associates 10 4 150 5 100
Operating earnings before tax 49 31 58 29 69
Gains/(losses) on investments 2 4 (50) 5 (60)
Impairment charges - (5) N.M. - N.M.
Other income/(charges) (385) - N.M. - N.M.
Income before tax (334) 30 N.M. 34 N.M.
Income tax (9) (21) 57 (14) 36
Net income (343) 9 N.M. 20 N.M.
Net underlying earnings 38 9 N.M. 17 124
Net operating earnings 40 10 N.M. 17 135
Commissions and expenses 73 98 (26) 116 (37)
of which operating expenses 42 52 (19) 49 (14)
- TABLE CONTINUED -
EUR millions Ytd 2009 Ytd 2008 %
Underlying earnings before
tax by line of business
Life 24 23 4
Accident and health 2 3 (33)
Life and protection 26 26 -
Variable annuities 2 (1) N.M.
Saving products 1 1 -
Retail mutual funds 8 5 60
Individual savings and retirement products 11 5 120
Pensions and asset management 10 6 67
General insurance 16 18 (11)
Share in net results of associates 14 13 8
Underlying earnings before tax 77 68 13
Over/(under) performance of fair value items 3 - N.M.
Operating earnings before tax 80 68 18
Operating earnings before
tax by line of business
Life 24 23 4
Accident and health 2 3 (33)
Life and protection 26 26 -
Variable annuities 5 (1) N.M.
Saving products 1 1 -
Retail mutual funds 8 5 60
Individual savings and retirement products 14 5 180
Pensions and asset management 10 6 67
General insurance 16 18 (11)
Share in net results of associates 14 13 8
Operating earnings before tax 80 68 18
Gains/(losses) on investments 6 5 20
Impairment charges (5) (1) N.M.
Other income/(charges) (385) - N.M.
Income before tax (304) 72 N.M.
Income tax (30) (24) (25)
Net income (334) 48 N.M.
Net underlying earnings 47 44 7
Net operating earnings 50 44 14
Commissions and expenses 171 207 (17)
of which operating expenses 94 92 2
OTHER COUNTRIES - SALES
EUR millions Notes Q2 2009 Q1 2009 % Q2 2008 %
New life sales 10
Life single premiums 94 112 (16) 121 (22)
Life recurring premiums annualized 37 39 (5) 55 (33)
Total recurring plus 1/10 single 47 50 (6) 67 (30)
Life 47 50 (6) 66 (29)
Saving products - - N.M. 1 N.M.
Total recurring plus 1/10 single 47 50 (6) 67 (30)
New premium production accident and
health insurance 1 2 (50) 1 -
New premium production general
insurance 5 5 - 9 (44)
Gross deposits (on and off balance)
Variable annuities 162 115 41 47 N.M.
Retail mutual funds 292 406 (28) 340 (14)
Pensions and asset management 199 185 8 153 30
Total gross deposits 653 706 (8) 540 21
Net deposits (on and off balance)
Variable annuities 147 109 35 43 N.M.
Retail mutual funds (59) 98 N.M. 110 N.M.
Pensions and asset management 67 93 (28) 81 (17)
Total net deposits 155 300 (48) 234 (34)
- TABLE CONTINUED -
OTHER COUNTRIES - SALES
EUR millions Ytd 2009 Ytd 2008 %
New life sales
Life single premiums 206 293 (30)
Life recurring premiums annualized 76 94 (19)
Total recurring plus 1/10 single 97 123 (21)
Life 97 122 (20)
Saving products - 1 N.M.
Total recurring plus 1/10 single 97 123 (21)
New premium production accident and
health insurance 3 3 -
New premium production general insurance 10 17 (41)
Gross deposits (on and off balance)
Variable annuities 277 82 N.M.
Retail mutual funds 698 388 80
Pensions and asset management 384 304 26
Total gross deposits 1,359 774 76
Net deposits (on and off balance)
Variable annuities 256 77 N.M.
Retail mutual funds 39 116 (66)
Pensions and asset management 160 173 (8)
Total net deposits 455 366 24
REVENUE GENERATING INVESTMENTS
June Mar.
30, 31,
2009 2009 %
Revenue generating investments (total) 10,760 13,350 (19)
Investments general account 2,608 6,030 (57)
Investments for account of policyholders 2,046 2,085 (2)
Off balance sheet investments third parties 6,106 5,235 17
FINANCIAL OVERVIEW, H1 2009 YEAR-TO-DATE GEOGRAPHICALLY
amounts in million EUR (unless otherwise stated)
United
Americas Kingdom The
USD GBP Americas Netherlands
Underlying earnings before
tax by line of business
438 18 Life and protection 328 130
(324) - Individual savings
and retirement products (243) (19)
27 11 Pensions and asset
management 21 83
158 - Institutional products 118 -
(13) - Life reinsurance (10) -
- (5) Distribution - 12
- - General insurance - (5)
Interest charges and other
(3) - Share in net results of
associates (2) -
283 24 Underlying earnings
before tax 212 201
198 (1) Over/(under) performance
of fair value items 149 (243)
481 23 Operating earnings before tax 361 (42)
Operating earnings before
tax by line of business
404 18 Life and protection 302 100
(284) - Individual savings and
retirement products (213) (19)
12 10 Pensions and asset
management 10 (130)
192 - Institutional products 144 -
160 - Life reinsurance 120 -
- (5) Distribution - 12
- - General insurance - (5)
Interest charges and other
(3) - Share in net results
of associates (2) -
481 23 Operating earnings before tax 361 (42)
32 34 Gains/(losses) on investments 25 68
(819) (44) Impairment charges (614) (106)
1 8 Other income/(charges) - -
(305) 21 Income before tax (228) (80)
504 2 Income tax 377 43
199 23 Net income 149 (37)
286 31 Net underlying earnings 215 148
415 30 Net operating earnings 311 (33)
- TABLE CONTINUED -
Holding,
other
United Other activities & Total
Kingdom countries eliminations EUR
Underlying earnings
before tax by line of
business 21 26 - 505
Individual savings
and retirement products - 11 - (251)
Pensions and asset
Management 11 10 - 125
Institutional products - - - 118
Life reinsurance - - - (10)
Distribution (5) - - 7
General insurance - 16 - 11
Interest charges and other (135) (135)
Share in net results
of associates - 14 - 12
Underlying earnings
before tax 27 77 (135) 382
Over/(under) performance of
fair value items (1) 3 (136) (228)
Operating earnings
before tax 26 80 (271) 154
Operating earnings
before tax
by line of business
Life and protection 21 26 - 449
Individual savings and
retirement products - 14 - (218)
Pensions and asset management 10 10 - (100)
Institutional products - - - 144
Life reinsurance - - - 120
Distribution (5) - - 7
General insurance - 16 - 11
Interest charges and other (271) (271)
Share in net results
of associates - 14 - 12
Operating earnings
before tax 26 80 (271) 154
Gains/(losses) on
investments 38 6 71 208
Impairment charges (49) (5) (5) (779)
Other income/(charges) 9 (385) - (376)
Income before tax 24 (304) (205) (793)
Income tax 2 (30) 67 459
Net income 26 (334) (138) (334)
Net underlying earnings 35 47 (102) 343
Net operating earnings 34 50 (194) 168
Net income
AEGON reported a net loss for H1 2009 of
Underlying earnings before tax
AEGON's underlying earnings in H1 2009 totaled
Although equity markets did recover in the second quarter of 2009, the
amortization of DPAC was not reversed due to the reversion to the mean
methodology. Fee income was down in H1 2009 due to lower assets balances, in
particular in the Americas and in the pension business in the
Fair value items
Net income for H1 2009 included an under-performance on fair value items
of
In the first half of 2009, certain alternative investment classes in the
Americas, particularly real estate and private equity, underperformed expected
long-term returns by
Fair value items also include the under/over-performance of assets held
through profit or loss and backing liabilities of a specific portfolio of
group pension contracts in
For consistency, the net impact of fair value movements in guarantees and
related hedges in
In the first half of 2009, net fair value gains of
The fair value of certain products with guarantees includes a credit spread in the discount rates, a reflection of dislocated, volatile and illiquid markets.
Three bonds issued by AEGON N.V. and their related hedge instruments are
held at fair value through profit or loss and included in fair value items.
AEGON's credit spread narrowed substantially during the first half of 2009,
leading to a loss on these bonds of
Net gains/losses on investments
In the first half of 2009, gains on investments totaled
Impairment charges
Impairment charges during the first half of 2009 amounted to
Tax
Net income in the first half of 2009 included a tax benefit of
Commission and expenses
Commissions and expenses for the first half of 2009 were up 2% at constant currency. While commissions were lower, amortization charges were up, due to accelerated amortization of DPAC in the Americas' variable annuity business. Operating expenses were up 3% at constant currency in H1 2009 as an increase in employee benefit and restructuring expenses in several businesses offset cost savings. Excluding the impact from these items, operating expenses were down 5% in H1 2009.
Sales
New life sales
AEGON's new life sales declined 28% in the first half of 2009 compared
with the same period last year. Sales were down in most countries with the
exception of
Deposits
Total gross deposits excluding institutional guaranteed products rose 9%
in the first half of 2009, compared with the same period the previous year,
mainly as a result of higher fixed annuity sales. Variable annuity sales were
also up, while sales of retirement plans in the pension business were strong,
particularly when taking into account the impact of lower financial markets on
existing investments. Pension deposits in Central &
Capital
At the end of
Excess capital, above AA capital adequacy requirements, amounted to
In its Annual Report 2008, AEGON extensively described certain risk categories and risk factors which could have a material adverse effect on its financial position and results. The company believes that the risks identified for the second half of 2009 are in line with the risks AEGON N.V. presented in its Annual Report 2008.
Equity market sensitivities
During Q2 2009, AEGON implemented a macro hedge program for equity exposure related to its retail variable annuity portfolio to reduce the sensitivity of AEGON's capital position to equity market movements. This program, a combination of out-of-the-money put options and linear hedge instruments, is in place for twelve months, but can be extended for a longer period. The hedge instruments will be carried at fair value through profit or loss and will be reported in fair value items.
Outlook
As a result of actions taken, AEGON's capital position remains strong with
excess capital at the end of the second quarter of 2009 of
AEGON's strong excess capital position allows the company to re-deploy capital in the business and reverse the earnings impact from de-risking initiatives, while continuing to focus on capital efficiency and reallocation of capital to markets with higher growth and return prospects. AEGON expects to continue to maintain an amount of excess capital substantially above AA capital adequacy requirements - an important safeguard against a possible deterioration in world financial markets.
Last year, AEGON announced cost savings measures totaling
Because of uncertain economic conditions, AEGON still expects an elevated level of asset impairments in its investment portfolio in 2009 compared to its long-term assumptions.
NET UNDERLYING EARNINGS GEOGRAPHICALLY
EUR millions Notes Q2 Q1 % Q2 % Ytd Ytd %
2009 2009 2008 2009 2008
1
Americas 259 (44) N.M. 321 (19) 215 669 (68)
The Netherlands 6 93 55 69 92 1 148 184 (20)
United Kingdom 24 11 118 39 (38) 35 79 (56)
Other countries 38 9 N.M. 17 124 47 44 7
Holding and other (57) (45) (27) (32) (78) (102) (36) (183)
Net underlying 357 (14) N.M. 437 (18) 343 940 (64)
earnings
OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS
EUR millions
Operating earnings
before tax 373 (219) N.M. 644 (42) 154 861 (82)
(Over)/under performance
of fair value items -
Americas (181) 32 N.M. (100) (81) (149) 274 N.M.
(Over)/under
performance of fair
value items - The
Netherlands 6 53 190 (72) 37 43 243 191 27
(Over)/under
performance of fair
value items -
United Kingdom (2) 3 N.M. - N.M. 1 - N.M.
(Over)/under
performance of fair
value items - Other
countries (2) (1) (100) - N.M. (3) - N.M.
(Over)/under performance
of fair value items -
Holding and other 163 (27) N.M. 15 N.M. 136 (72) N.M.
Underlying earnings
before tax 404 (22) N.M. 596 (32) 382 1,254 (70)
Net underlying
earnings 357 (14) N.M. 437 (18) 343 940 (64)
AMERICAS - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS
USD millions
Over/(under) performance of fair
value items by line of business
Life and protection 11 (45) N.M. 22 (50) (34) (8) N.M.
Individual savings
and retirement
products 31 9 N.M. 29 7 40 (231) N.M.
Pensions and asset
management (2) (13) 85 4 N.M. (15) (3) N.M.
Institutional
products 133 (99) N.M. 80 66 34 (164) N.M.
Life reinsurance 67 106 (37) 6 N.M. 173 (13) N.M.
Total over/(under)
performance of fair
value items 240 (42) N.M. 141 70 198 (419) N.M.
Total over/(under)
performance of fair value
items in EUR 181 (32) N.M. 100 81 149 (274) N.M.
THE NETHERLANDS - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS
EUR millions 6
Over/(under) performance of fair
value items by line of business
Life and protection (4) (26) 85 (2) (100) (30) (21) (43)
Pensions and asset
management (49) (164) 70 (35) (40) (213) (170) (25)
Total over/(under)
performance of fair
value items (53) (190) 72 (37) (43) (243) (191) (27)
UNITED KINGDOM - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS
GBP millions
Over/(under) performance of fair
value items by line of business
Pensions and asset
management 2 (3) N.M. - N.M. (1) - N.M.
Total over/(under)
performance of fair
value items 2 (3) N.M. - N.M. (1) - N.M.
OTHER COUNTRIES - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS
EUR millions
Over/(under) performance of fair
value items by line of business
Variable annuities 2 1 100 - N.M. 3 - N.M.
Total over/(under)
performance of fair
value items 2 1 100 - N.M. 3 - N.M.
SALES
EUR millions Q2 2009 Q1 2009 % Q2 2008 %
New life sales 469 543 (14) 729 (36)
Gross deposits
(on and off balance) 6,762 8,241 (18) 9,131 (26)
New life sales
Life single premiums 1,504 2,025 (26) 2,880 (48)
Life recurring premiums
annualized 318 341 (7) 441 (28)
Total recurring plus 1/10 single 469 543 (14) 729 (36)
Life 213 249 (14) 280 (24)
Saving products - - N.M. 1 N.M.
Pensions 221 253 (13) 398 (44)
BOLI/COLI 1 1 - 4 (75)
Life reinsurance 34 40 (15) 46 (26)
Total recurring plus 1/10 single 469 543 (14) 729 (36)
New premium production accident
and health insurance 146 164 (11) 141 4
New premium production
general insurance 11 12 (8) 16 (31)
Gross deposits (on and off balance)
Fixed annuities 928 1,628 (43) 875 6
Variable annuities 949 714 33 717 32
Saving products 779 580 34 688 13
Retail mutual funds 671 642 5 908 (26)
Pensions and asset management 2,319 2,829 (18) 2,461 (6)
Institutional guaranteed products 1,115 1,848 (40) 3,481 (68)
Life reinsurance 1 - N.M. 1 -
Total gross deposits 6,762 8,241 (18) 9,131 (26)
Total gross deposits excl.
institutional guaranteed products 5,647 6,393 (12) 5,650 -
Net deposits (on and off balance)
by line of business
Fixed annuities 145 688 (79) (24) N.M.
Variable annuities 412 78 N.M. (102) N.M.
Saving deposits 43 (67) N.M. 114 (62)
Retail mutual funds 23 (98) N.M. 416 (94)
Pensions and asset management 246 506 (51) 180 37
Institutional guaranteed
products (1,432) (2,354) 39 401 N.M.
Life reinsurance (12) (16) 25 (14) 14
Total net deposits (575) (1,263) 54 971 N.M.
Total net deposits excl.
institutional guaranteed products 857 1,091 (21) 570 50
- TABLE CONTINUED -
EUR millions Ytd 2009 Ytd 2008 %
New life sales 1,012 1,415 (28)
Gross deposits (on and off balance) 15,003 17,767 (16)
New life sales
Life single premiums 3,529 5,637 (37)
Life recurring premiums annualized 659 851 (23)
Total recurring plus 1/10 single 1,012 1,415 (28)
Life 462 564 (18)
Saving products - 1 N.M.
Pensions 474 750 (37)
BOLI/COLI 2 13 (85)
Life reinsurance 74 87 (15)
Total recurring plus 1/10 single 1,012 1,415 (28)
New premium production accident
and health insurance 310 307 1
New premium production general insurance 23 32 (28)
Gross deposits (on and off balance)
Fixed annuities 2,556 1,181 116
Variable annuities 1,663 1,402 19
Saving products 1,359 1,336 2
Retail mutual funds 1,313 1,472 (11)
Pensions and asset management 5,148 5,644 (9)
Institutional guaranteed products 2,963 6,730 (56)
Life reinsurance 1 2 (50)
Total gross deposits 15,003 17,767 (16)
Total gross deposits excl.
institutional guaranteed products 12,040 11,037 9
Net deposits (on and off balance)
by line of business
Fixed annuities 833 (819) N.M.
Variable annuities 490 (254) N.M.
Saving deposits (24) 42 N.M.
Retail mutual funds (75) 587 N.M.
Pensions and asset management 752 1,350 (44)
Institutional guaranteed products (3,786) (794) N.M.
Life reinsurance (28) (29) 3
Total net deposits (1,838) 83 N.M.
Total net deposits excl.
institutional guaranteed products 1,948 877 122
EMPLOYEE NUMBERS At At
June 30, Dec. 31,
2009 2008
Number of employees 29,463 31,425
VALUE OF NEW BUSINESS AND IRR
VNB VNB VNB
EUR EUR EUR
EUR millions, Q2 2009 Q1 2009 % Q2 2008 %
after tax
Americas 66 79 (16) 100 (34)
The Netherlands 36 31 16 11 N.M.
United Kingdom 45 57 (21) 64 (30)
Other Countries 34 33 3 38 (11)
Total 181 201 (10) 212 (15)
- TABLE CONTINUED -
VNB VNB
EUR EUR
EUR millions, Ytd 2009 Ytd 2008 %
after tax
Americas 145 179 (19)
The Netherlands 67 22 N.M.
United Kingdom 102 117 (13)
Other Countries 68 80 (15)
Total 382 398 (4)
IRR % IRR% IRR%
EUR millions, Q2 2009 Q1 2009 Q2 2008
after tax
Americas 11.1 10.3 12.4
The Netherlands 29.5 14.1 10.4
United Kingdom 13.8 15.0 13.4
Other Countries 39.5 37.0 42.8
Total 21.9 17.8 18.0
MODELED NEW BUSINESS, APE AND DEPOSITS
Premium business
APE
EUR millions Notes Q2 2009 Q1 2009 % Q2 2008 %
11
Americas 245 266 (8) 268 (9)
The Netherlands 44 78 (44) 97 (55)
United Kingdom 261 312 (16) 424 (38)
Other Countries 104 114 (9) 106 (2)
Total 654 769 (15) 895 (27)
Deposit business
Deposits
EUR millions Q2 2009 Q1 2009 % Q2 2008 %
Americas 5,112 5,252 (3) 6,627 (23)
Other Countries 186 136 37 23 N.M.
Total 5,298 5,389 (2) 6,649 (20)
- TABLE CONTINUED -
Premium business
APE
EUR millions Ytd 2009 Ytd 2008 %
Americas 511 562 (9)
The Netherlands 122 171 (29)
United Kingdom 573 802 (29)
Other Countries 218 208 5
Total 1,423 1,743 (18)
Deposit business
Deposits
EUR millions Ytd 2009 Ytd 2008 %
Americas 10,364 12,624 (18)
Other Countries 322 52 N.M.
Total 10,687 12,676 (16)
VNB/PVNBP SUMMARY
Premium business Premium business
VNB PVNBP VNB/ VNB/ VNB PVNBP VNB/ VNB/
PVNBP APE PVNBP APE
EUR Notes Q2 2009 % % Ytd 2009 % %
millions 12
Americas 33 1,106 3.0 13.5 65 2,337 2.8 12.6
The Netherlands 36 353 10.3 82.4 67 1,000 6.7 55.1
United Kingdom 45 1,619 2.8 17.3 102 3,643 2.8 17.8
Other 36 821 4.4 34.6 71 1,752 4.0 32.4
Countries
Total 151 3,900 3.9 23.0 305 8,732 3.5 21.4
Deposit business Deposit business
VNB PVNBP VNB/ VNB/ VNB PVNBP VNB/ VNB/
PVNBP Deposits PVNBP Deposits
EUR Notes Q2 2009 % % Ytd 2009 % %
millions 12
Americas 33 6,502 0.5 0.6 80 12,887 0.6 0.8
Other Countries (2) 347 (0.7) (1.2) (3) 667 (0.4) (0.8)
Total 30 6,849 0.4 0.6 78 13,554 0.6 0.7
Notes:
1) Certain assets held by AEGON Americas, AEGON The Netherlands and AEGON
UK are carried at fair value, and managed on a total return basis, with
no offsetting changes in the valuation of related liabilities. These
include assets such as hedge funds, private equities, real estate
limited partnerships, convertible bonds and structured products.
Underlying earnings exclude any over- or underperformance compared to
management's long-term expected return on these assets. Based on
current holdings and asset class returns, the long-term expected
return on an annual basis is 8-10%, depending on the asset class,
including cash income and market value changes. The expected earnings
from these asset classes are net of DPAC where applicable. In
addition, certain products offered by AEGON Americas contain guarantees
and are reported on a fair value basis, including the segregated funds
offered by AEGON Canada and the total return annuities and guarantees
on variable annuities of AEGON USA. The earnings on these products are
impacted by movements in equity markets and risk free interest rates.
Short-term developments in the financial markets may therefore cause
volatility in earnings. Included in underlying earnings is a long-term
expected return on these products, and any over- or underperformance
compared to management's expected return is excluded from underlying
earnings. The fair value movements of certain guarantees and the fair
value change of derivatives that hedge certain risks on these
guarantees of AEGON the Netherlands and Variable Annuities Europe
(included in Other countries) are excluded from underlying earnings.
The Holding includes certain issued bonds that are held at fair value
through profit or loss. The interest rate risk on these bonds is hedged using
swaps. The change in AEGON's credit spread resulted in a loss of
2) Net income refers to net income attributable to equity holders of
AEGON N.V.
3) New life sales is defined as new recurring premiums + 1/10 of single
premiums.
4) Deposits on and off balance sheet.
5) Return on equity is calculated by dividing the net underlying earnings
after cost of leverage by the average shareholders' equity excluding
the preferred shares and the revaluation reserve.
6) In order to maintain consistency in definitions, starting in the
fourth quarter 2008, the net impact of the fair value movements of
guarantees and the related hedges in the Netherlands has been excluded
from underlying earnings. Previously, differences in fair value between
guarantees and related hedges, referenced as hedge ineffectiveness,
were reported in gain/losses on investments. Results from previous
years have been adjusted.
7) Capital securities that are denominated in foreign currencies are, for
purposes of calculating the capital base ratio, revalued to the period-
end exchange rate.
8) All ratios exclude AEGON's revaluation reserve. Included in other non-
operating income/(charges) are charges made to
9) policyholders with respect to income tax. There is an equal and
opposite tax charge which is reported in the line Income tax
attributable to policyholder return. Includes production on investment
contracts without a discretionary
10) participation feature of which the proceeds are not recognized as
revenues but are directly added to our investment contract liabilities.
11) APE = recurring premium + 1/10 single premium.
12) PVNBP: Present Value New Business Premium.
Currencies
Income statement items: average rate
Income statement items: average rate
Balance sheet items: closing rate
Balance sheet items: closing rate
As an international life insurance, pension and investment company based
in
Key figures Second quarter 2009 First quarter 2009
Underlying earnings before tax EUR 404 million EUR (22) million
New life sales EUR 469 million EUR 543 million
Gross deposits EUR 6.8 billion EUR 8.2 billion
Revenue generating investments EUR 342 billion EUR 334 billion
(End of period)
Cautionary note regarding non-GAAP measures
This press release includes certain non-GAAP financial measures: net operating earnings, operating earnings before tax, underlying earnings before tax, net underlying earnings and value of new business. The reconciliation of underlying earnings before tax and operating earnings before tax to the most comparable IFRS measures is provided on the "Financial Overview (geographically)" tables. A reconciliation of (net) underlying earnings to operating earnings before tax is provided on the "over/under performance of fair value items" tables.
Value of new business is not based on IFRS, which are used to report AEGON's quarterly statements and should not be viewed as a substitute for IFRS financial measures.
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 businesses of our peers.
Local currencies and constant currency exchange rates
This press release contains certain information about our results and
financial condition in USD for the Americas and GBP for the
Forward-looking statements
The statements contained in this press release that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, should, would, 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 publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties. Such risks and uncertainties include but are not limited to the following:
Changes in general economic conditions, particularly in
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 decline in the value of
equity and debt securities we hold;
- The frequency and severity of insured loss events;
Changes affecting mortality, morbidity and other factors that may
impact
- the profitability of our insurance 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 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;
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;
Our failure to achieve anticipated levels of earnings or operational
- efficiencies as well as other cost saving initiatives; and
- The impact our adoption of the International Financial Reporting
Standards may have on our reported financial results and financial
condition.
Further details of potential risks and uncertainties affecting the company are described in the company's filings with Euronext Amsterdam 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 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.
Group Corporate Communications & Investor Relations
Media relations
Phone: +31(0)70-344-8956
E-mail: ir@aegon.com' target='_blank' title='gcc-ir@aegon.com'>gcc-ir@aegon.com
Investor relations
Phone: +31(0)70-344-8305
or +1-877-548-9668-toll free USA only
E-mail: ir@aegon.com
Media conference call
8:00 am CET
Audio webcast on http://www.aegon.com
Analyst & investor call
9:00 am CET
Audio webcast on http://www.aegon.com
Call-in numbers (listen only):
USA: +1-480-629-9822
UK: +44-208-515-2316
NL: +31-20-796-5332
Website: http://www.aegon.com
Supplements:
AEGON's Q2 2009 Financial Supplement and Condensed Consolidated Interim Financial Statements are available on http://www.aegon.com.
SOURCE AEGON N.V.