AEGON Maintains Strong Capital Position Despite Fourth Quarter 2008 Loss

    THE HAGUE, The Netherlands, March 12 /PRNewswire-FirstCall/ --

    Fourth quarter results in line with pre-announcement of February 17, 2009

    - AEGON maintains strong capital position:

- Excess capital over AA capital adequacy requirements of EUR 2.9 billion;

- IGDa) capital surplus of EUR 5.6 billion, equivalent to a solvency ratio of 183%;

- NAIC RBCb) ratio of 350% for the US life insurance operations;

- Core capitalc) of EUR 16.2 billion excluding revaluation reserve at the end of 2008 (EUR 9.1 billion including revaluation reserve);

- Decline in revaluation reserve of EUR 1.7 billion in Q4, driven by widening in credit spreads

- Underlying loss before tax of EUR 181 million, due mainly to reserve strengthening and accelerated amortization of deferred acquisition costs in the US, and lower fees in general

- Net loss in Q4 of EUR 1.2 billion, including an extraordinary tax charge of EUR 300 million

- New life sales in Q4 2008 of EUR 598 million; total gross deposits of EUR 11.9 billion; net deposits of EUR 1.7 billion

- Value of new business in Q4 of EUR 233 million, with an internal rate of return of 16.5%

Statement Alex Wynaendts, CEO

"The severe disruption in world financial markets significantly impacted AEGON's earnings during the fourth quarter of 2008. This challenging environment which has persisted in the early part of 2009 confirms that our strategic priorities of releasing capital and reducing costs, as well as putting in place contingencies to withstand further market deterioration are the right ones. In the fourth quarter, we released EUR 1 billion of capital and expect to release a further EUR 1.5 billion in 2009. Our businesses in the United States, the Netherlands and the United Kingdom are also on track to deliver on our target of EUR 150 million in cost reductions in 2009. We are pleased by the continued confidence of our customers as evidenced by resilient sales and a strong increase in deposits. We believe that the solid fundamentals of our business, combined with AEGON's financial position and the actions we are taking justify their continued confidence."

    KEY PERFORMANCE INDICATORS

    amounts in EUR millions (except per   Notes Q4 2008 Q4 2007   %        At
     share data)                                                     constant
                                                                     currency
                                                                            %

    Underlying earnings before tax            1    (181)    667  N.M.    N.M.

    Net income                                2  (1,182)    648  N.M.    N.M.

    New life sales                            3     598     800  (25)    (19)

    Total deposits                            4  11,933   9,594   24      17

    Value of new business (VNB)                     233     226    3       4

    Return on equity                          5   (8.7%)  12.5%  N.M.



    amounts in EUR millions (except per         FY 2008 FY 2007   %        At
     share data)                                                     constant
                                                                     currency
                                                                            %

    Underlying earnings before tax                1,573   2,639  (40)    (37)

    Net income                                   (1,082)  2,551  N.M.    N.M.

    New life sales                                2,631   3,274  (20)    (11)

    Total deposits                               40,751  44,528   (8)     (3)

    Value of new business (VNB)                     837     927  (10)     (2)

    Return on equity                               6.6%   12.5%  (47)

a) The calculation of the IGD (Insurance Group Directive) capital surplus and ratio have been changed from the disclosure in the previous quarter to better reflect regulatory solvency requirements of local regulators and are based on Solvency I capital requirements on IFRS for entities within the EU, 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 b) National Association of Insurance Commissioners Risk Based Capital c) Core capital is the sum of shareholders' equity and the EUR 3 billion in convertible core capital securities from Vereniging AEGON, funded by the Dutch State

In June 2008, AEGON set out three strategic priorities:

1. To reallocate capital toward businesses with higher growth and return prospects;

    2. To improve growth and returns from existing businesses;

    3. Manage AEGON as an international company.

Subsequently, at the Analyst & Investor Day on November 24, AEGON identified and announced three priorities to counter the challenges of the current global financial crisis and position the company for growth:

- Focus on capital preservation and accelerate the capital release program, with a EUR 600-800 million target for Q4 2008;

- EUR 150 million cost reduction program for 2009;

- Develop contingency plans for continued deterioration in financial markets.

As announced last June, AEGON is conducting an ongoing review of its portfolio of businesses to ensure that they meet the criteria outlined in the strategy. On February 17, 2009, AEGON announced that due to the market dislocation it will downsize its institutional business (AEGON Institutional Market Division, IMD) in the Americas, which will result in lower credit risk in the long run and a release of capital in the near term.

AEGON and the global financial crisis

In the fourth quarter of 2008, the financial crisis accelerated and a severe global economic downturn began to unfold. Liquidity in financial markets was severely affected. Equity markets were down by more than 20%, while equity market volatility rose to a historical high. Meanwhile, as government bond yields reached historic lows, credit spreads more than doubled across many market segments in Q4.

The downturn in financial markets has significantly impacted AEGON's results. Moreover, the continued deterioration in the US housing market increased risks in mortgage backed securities, leading to impairments. Also, corporate bonds, in particular high yield, experienced higher defaults.

In order to provide a fuller view of the possible impacts of the financial crisis on AEGON, management disclosed updated earnings and capital sensitivities to a possible further downturn of financial markets. In particular, this additional information pertained to equity market exposure, impairments and interest rate movements.

Given market developments and the ongoing uncertainty regarding the financial and economic environment, AEGON felt it was prudent to reinforce its capital buffer to a level substantially in excess of its AA capital adequacy requirements. On October 28, AEGON announced that it had secured EUR 3 billion of additional core capital from Vereniging AEGON funded by the Dutch State.

Capital preservation

As the financial crisis unfolded, acceleration of capital preservation actions has been a priority. The actions taken and plans to be executed are evidence of the financial flexibility within AEGON to manage through these extraordinary times. They include:

- Releasing EUR 1.7 billion of capital in the second half year of 2008, including EUR 1 billion in the fourth quarter, by actively reducing risks - including investment risks, optimizing asset and liability management, reinsurance transactions and securitization;

- Releasing an additional EUR 1.5 billion of capital in 2009 by lowering investment risk, and transferring risk through reinsurance.

- Reducing spread-based balances within AEGON's institutional business in the United States by EUR 14 billion, freeing up EUR 0.6 billion of capital in the next two years (EUR 0.3 billion in 2009, which is included in total expected capital releases for 2009 of EUR 1.5 billion).

The capital preservation actions in Q4 2008 of EUR 1 billion are expected to have a negative effect on earnings of EUR 60 million on an annual basis. As these actions are largely derisking measures, they can be reversed at any time.

As a result of actions taken, the capital position of the company remains strong with excess capital of EUR 2.9 billion over AA capital adequacy requirements at year-end, a significant buffer against further market deterioration.

Cost measures

AEGON announced cost reduction measures totaling EUR 150 million in 2009. Actions to achieve this include:

- Americas: no wage increases in 2009, staff reductions, deferred hiring, reorganization of the agency distribution, downsizing IMD;

- The Netherlands: reduction of contract services, process reengineering, general cost savings;

- United Kingdom: restructuring of IT and marketing and customer services, cost containment, savings in distribution.

    Capital management and capital position

    AEGON capitalizes its businesses at the higher of:

    - Regulatory requirements;
    - AA capital adequacy requirements;

- Any self-imposed additional economic requirements under AEGON's economic framework.

AEGON has EUR 2.9 billion excess capital over AA capital adequacy requirements and has an IGD capital surplus of EUR 5.6 billion, equivalent to an IGD solvency ratio of 183% (2007: 190%). Regulatory requirements are set by local regulators, while the IGD ratio is a European regulatory solvency calculation. The methodology to calculate the IGD ratio has changed from the disclosure over the third quarter results to better reflect regulatory solvency requirements of the respective local regulators. The previously disclosed IGD ratio included the calculation of the ratio for the businesses outside of the EU based on EU Solvency I capital requirements. The IGD ratio now takes into account Solvency I capital requirements on IFRS for entities within the EU, and local regulatory solvency measurements for non-EU entities. Specifically, required capital for the life insurance companies in the United States 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 United States. AEGON does not manage its capital base to the IGD ratio. AEGON USA had a NAIC RBC ratio of 350%, compared with 336% at the end of 2007.

Core capital at year-end came in at EUR 9.1 billion, consisting of EUR 6.1 billion of shareholders' equity and EUR 3 billion of convertible core capital securities provided by Vereniging AEGON, funded by the Dutch State. Core capital includes a negative revaluation account on available-for-sale assets of EUR 7.2 billion. Excluding the revaluation account, core capital amounted to EUR 16.2 billion, 78% of the total capital base, above the minimum target of 70%.

AEGON's negative revaluation account increased during the fourth quarter by EUR 1.7 billion, the result of unprecedented credit spread widening, more than offsetting the effect of declines in government bond yields.

AEGON has not reclassified assets held as available-for-sale (AFS) to loans or held-to-maturity assets.

Also, AEGON transferred a very limited amount of assets valued based on market prices to mark-to-model valuations, driven by current market developments. The mark-to-model is now 1.1% (EUR 1.1 billion) of the total valuation of debt instruments held at fair value (2007: 0.4%). For more details we refer to the explanatory notes on page 36.

The lower valuation of the AFS bond portfolio will only affect earnings before tax if AEGON:

- Is forced to sell those investments at a loss; or

- Impairs certain investments because the company does not expect to receive (part of) interest and/or principal.

AEGON's long-term business model, and its liquidity and asset and liability management, ensure that it is unlikely that AEGON will be forced to sell assets at distressed prices, as reflected in the revaluation account, to generate cash. Therefore, AEGON's negative revaluation reserve is not a good indication of future losses. AEGON expects impairments will be at elevated levels in 2009, due to the economic situation.

    FINANCIAL OVERVIEW

    EUR millions                   Notes Q4 2008 Q4 2007      %         At
                                                                   constant
                                                                   currency
                                                                          %

    Underlying earnings before
     tax by line of business
    Life and protection                      121     357    (66)      (71)
    Individual savings and
     retirement products                    (433)     90    N.M.      N.M.
    Pensions and asset management            179     137     31        28
    Institutional products                   100      96      4        (6)
    Life reinsurance                        (114)     18    N.M.      N.M.
    Distribution                             (19)    (21)    10        14
    General insurance                         (3)     13    N.M.      N.M.
    Interest charges and other               (17)    (34)    50        54
    Share in net results of
     associates                                5      11    (55)      (73)
    Underlying earnings before tax          (181)    667    N.M.     (140)
    Over/(under) performance of
     fair value items                       (770)   (145)   N.M.
    Operating earnings before tax           (951)    522    N.M.      N.M.


    Operating earnings before tax
     by line of business
    Life and protection                      104     346    (70)      (75)
    Individual savings and
     retirement products                    (902)     79    N.M.      N.M.
    Pensions and asset management            224      13    N.M.      N.M.
    Institutional products                   (54)     93    N.M.      N.M.
    Life reinsurance                        (319)     22    N.M.      N.M.
    Distribution                             (19)    (21)    10        14
    General insurance                         (3)     13    N.M.      N.M.
    Interest charges and other                13     (34)   N.M.      N.M.
    Share in net results of
     associates                                5      11    (55)      (73)
    Operating earnings before tax           (951)    522    N.M.      N.M.


    Gains/(losses) on investments            136     281    (52)      (52)
    Impairment charges                      (501)    (17)   N.M.      N.M.
    Other income/(charges)                    38     (24)   N.M.      N.M.
    Income before tax                     (1,278)    762    N.M.      N.M.
    Income tax                                96    (114)   N.M.      N.M.
    Net income                            (1,182)    648    N.M.      N.M.

    Net underlying earnings                  (69)    516    N.M.      N.M.
    Net operating earnings                  (623)    399    N.M.      N.M.

    Underlying earnings geographically
    Americas                                (234)    503    N.M.      N.M.
    The Netherlands                           75     109    (31)      (31)
    United Kingdom                            13      67    (81)     (104)
    Other countries                          (17)     22    N.M.      N.M.
    Holding and other                        (18)    (34)    47        54
    Underlying earnings before tax          (181)    667    N.M.      N.M.

    Operating earnings
     geographically
    Americas                              (1,167)    506    N.M.      N.M.
    The Netherlands                          227     (39)   N.M.      N.M.
    United Kingdom                            (6)     67    N.M.      N.M.
    Other countries                          (17)     22    N.M.      N.M.
    Holding and other                         12     (34)   N.M.      N.M.
    Operating earnings before tax           (951)    522    N.M.      N.M.


    Commissions and expenses               1,863   1,438     30        28
    of which operating expenses              928     867      7         6




    EUR millions                       FY 2008 FY 2007      %   At constant
                                                                 currency %

    Underlying earnings before
     tax by line of business
    Life and protection                    911   1,295    (30)    (25)
    Individual savings and
     retirement products                  (146)    496    N.M.    N.M.
    Pensions and asset management          508     498      2       6
    Institutional products                 405     332     22      31
    Life reinsurance                       (63)    114    N.M.    N.M.
    Distribution                             1       6    (83)    (83)
    General insurance                       45      47     (4)     (2)
    Interest charges and other            (112)   (185)    39      36
    Share in net results of
     associates                             24      36    (33)    (33)
    Underlying earnings before tax       1,573   2,639    (40)    (37)
    Over/(under) performance of
     fair value items                   (1,619)   (272)   N.M.
    Operating earnings before tax          (46)  2,367    N.M.    N.M.


    Operating earnings before tax
     by line of business
    Life and protection                    795   1,284    (38)    (34)
    Individual savings and
     retirement products                  (922)    524    N.M.    N.M.
    Pensions and asset management          251     181     39      47
    Institutional products                   8     339    (98)    (98)
    Life reinsurance                      (361)    135    N.M.    N.M.
    Distribution                             1       6    (83)    (83)
    General insurance                       45      47     (4)     (2)
    Interest charges and other             113    (185)   N.M.    N.M.
    Share in net results of
     associates                             24      36    (33)    (33)
    Operating earnings before tax          (46)  2,367    N.M.    N.M.


    Gains/(losses) on investments           35     746    (95)    (97)
    Impairment charges                  (1,038)    (76)   N.M.    N.M.
    Other income/(charges)                 (12)     40    N.M.    N.M.
    Income before tax                   (1,061)  3,077    N.M.    N.M.
    Income tax                             (21)   (526)    96      97
    Net income                          (1,082)  2,551    N.M.    N.M.

    Net underlying earnings              1,234   2,033    (39)    (36)
    Net operating earnings                  69   1,805    (96)    (96)

    Underlying earnings
     geographically
    Americas                             1,073   1,993    (46)    (42)
    The Netherlands                        378     418    (10)    (10)
    United Kingdom                         141     271    (48)    (47)
    Other countries                         93     142    (35)    (34)
    Holding and other                     (112)   (185)    39      37
    Underlying earnings before tax       1,573   2,639    (40)    (37)

    Operating earnings
     geographically
    Americas                              (587)  2,102    N.M.    N.M.
    The Netherlands                        213      37    N.M.    N.M.
    United Kingdom                         122     271    (55)    (47)
    Other countries                         93     142    (35)    (34)
    Holding and other                      113    (185)   N.M.    N.M.
    Operating earnings before tax          (46)  2,367    N.M.    N.M.


    Commissions and expenses             6,109   5,939      3       9
    of which operating expenses          3,272   3,237      1       7



    Overview

AEGON reported a net loss for Q4 of EUR 1.2 billion. Results are in line with preliminary results announced on February 17, 2009 and were significantly impacted by financial markets.

Underlying earnings were down mainly due to declining financial markets, resulting in reserve strengthening and accelerated amortization of deferred policy acquisition costs (DPAC) in the variable annuities line of business in the Americas and reduced fees on asset balances in general.

Net income was also down due to increased impairment charges and the impact of financial markets on so-called fair value items, which include certain investment classes in the Netherlands and the Americas, as well as a number of products containing financial guarantees. Lower equity and credit markets, as well as increased implied volatilities and lower interest rates severely impacted the fair value of guarantees in these products. In addition, alternative investment classes, like hedge funds and private equity, significantly underperformed long-term expected returns.

Impairments came primarily from housing related structured assets, corporate high-yield bonds and equity investments. The impairments on corporate credit were driven by a number of small impairments.

Net income also includes an extraordinary tax charge of EUR 300 million, related to intercompany reinsurance treaties between Ireland and the United States, offsetting the tax benefit from the reported operational losses. These reinsurance treaties are accounted for at fair value in both tax jurisdictions, while gains in the United States are taxed at 35% and losses in Ireland are tax deductible at 12.5%.

Underlying earnings before tax

In Q4 the underlying loss for the company amounted to EUR 181 million.

Underlying earnings in the Americas came in at a negative USD 412 million. The impact on earnings from lower equity markets of USD 839 million mainly affected:

a) The variable annuity business (USD 587 million) due to minimum guarantee reserves strengthening and accelerated amortization of DPAC and lower fees;

b) The life reinsurance business as result of reserve strengthening of variable annuity blocks of business (USD 150 million); and

c) The life business (USD 65 million).

Underlying earnings in the Americas in Q4 also included USD 230 million of one-off charges, the most significant being an increase in the long-term assumption for equity market volatility (USD 145 million). Earnings also include a charge of USD 40 million related to intangible assets from the acquisition of Merrill Lynch's life insurance businesses, and a USD 45 million asset write-off in life reinsurance. In Q4 2007, underlying earnings in the Americas included a positive USD 52 million from updated mortality assumptions in the life business.

In the Netherlands, underlying earnings were down 31% to EUR 75 million. The positive impact of an exceptional dividend received and better technical results in the pension business in the Netherlands was more than offset by decreases in investment income as well as charges in other lines of business. These charges include adverse technical results in the non-life business, system and project related one-off expenses and restructuring charges.

Underlying earnings in the United Kingdom, meanwhile, were GBP 13 million, a decline of GBP 34 million due primarily to the impact of lower equity and credit markets on fee charges in the pension business. Other lines of business in the United Kingdom performed well.

The decline in underlying earnings from Other countries to a loss of EUR 17 million was the result mainly of accelerated amortization of deferred acquisition costs in Taiwan (EUR 43 million), as underlying earnings in Central & Eastern Europe increased 87% to EUR 28 million and in Spain 11% to EUR 10 million.

Net income

Net income includes results on so-called fair value items, which include certain investment classes in the Netherlands and the Americas, as well as a number of products containing financial guarantees. The total underperformance of these fair value items amounted to EUR 770 million. The valuation of the fair value of liability guarantees reflects decreased interest rates, declining equity markets and sharply increased equity volatilities, as well as discount rates including a credit spread, a reflection of extremely dislocated and very illiquid markets.

Underperformance of fair value items

In Q4 2008, underperformance of alternative investment classes, such as hedge funds, private equity and credit derivatives, in the Americas and the Netherlands amounted to EUR 500 million.

Fair value items include the under/overperformance on assets held at fair value through profit and loss and backing liabilities of a specific portfolio of group pension contracts in the Netherlands. In Q4 these assets underperformed long term expected returns by EUR 149 million.

In order to maintain consistency in definitions, starting in Q4 2008, the net impact of the fair value movements of guarantees and the related hedges in the Netherlands has been included in fair value items. Previously, differences in fair value between guarantees and related hedges, referenced as hedge ineffectiveness, were reported in gains/losses on investments. Results for prior years have been adjusted (see Financial supplement Q4 2008).

Lower bond and equity markets, as well as higher volatilities and lower interest rates negatively impacted the performance of certain products with guarantees reported at fair value. Those negative impacts were partly offset by a credit spread in the discount rates, a reflection of extremely dislocated and very illiquid markets. Products with guarantees at fair value contributed a total negative EUR 139 million to earnings. This includes mainly:

- Net fair value losses on GMWB guarantees and related hedges in the Americas and the United Kingdom (EUR 280 million), segregated funds in Canada (EUR 201 million) and total return annuities (EUR 82 million);

- Partially offset by EUR 425 million positive impact from hedge ineffectiveness in the Netherlands.

Effectiveness of hedging was affected by extreme volatility in Q4, while higher implied volatilities impacted the valuation of guarantees.

Gains on investments

Gains on investments of EUR 136 million include primarily gains on derivatives considered as economic hedges at holding level and the Netherlands as well as realized gains on the sale of bonds, offset by lower real estate values in the Netherlands.

Impairment charges

Impairments of EUR 501 million included EUR 360 million on bonds/mortgages, primarily structured assets (subprime bonds EUR 100 million) and a number of corporate bonds in the Americas (EUR 158 million), as well as equity impairments (EUR 141 million). The impairments in corporate credit were driven by a number of small impairments. Equity investments are impaired when market values are 20% below cost price or when they are in an unrealized loss position for more than six months.

Tax

The tax benefit from the underlying loss, impairments and mark-to-market losses on the fair value items is more than offset by significant additional taxes related to cross border intercompany reinsurance transactions (EUR 300 million). These reinsurance treaties are accounted for at fair value in both tax jurisdictions, while gains in the United States are taxed at 35% and losses in Ireland are tax deductible at 12.5%. The driver of the tax losses in Ireland is credit spread widening. These tax losses are largely expected to reverse as the book matures and when credit spreads narrow.

Commissions and expenses

Commissions and expenses increased by 30% to EUR 1,863 million, primarily due to acceleration of DPAC amortization. Operating expenses increased by 7% to EUR 928 million, including several one-off items such as restructuring charges, redundancy charges and provisions.

Sales

Total new life sales for the company were in line with Q3 2008, and decreased by 19% (at constant currency) to EUR 598 million compared to Q4 2007. With the exception of the UK and Spain, all countries recorded lower sales in Q4 compared to Q4 2007.

New life sales in the Americas were down 43% in local currency, particularly due to lower bank-owned and corporate owned life insurance (BOLI/COLI) sales (down 83%). Economic conditions also affected the high net worth market as well as variable universal life sales in the middle market.

In Q4 2008 new life sales in the Netherlands decreased by 44% in local currency, primarily due to a 57% decline in pension sales, as Q4 2007 included several large contracts, while retail life sales held up reasonably well. New life sales in the United Kingdom increased by 5%, mainly driven by growth in the corporate pension market and individual annuities, offset by lower individual pension sales.

New life sales in Q4 declined 34% to EUR 58 million in Other countries. In Central & Eastern Europe, sales of recurring premium life insurance rose 13%.

Single premium sales in Poland were sharply lower because of a decline in equity markets, driving down total new life sales in Central & Eastern Europe by 27%.

In Spain, sales of life insurance rose to EUR 23 million, due primarily to extraordinary activity, following changes in pension legislation. Sales through CAM, AEGON's largest bank partner in Spain, tripled to EUR 77 million (on a 100% basis), as a result of a successful strategy to increase the insurance penetration ratio among their existing client base. In Asia, new life sales decreased to EUR 13 million as increased sales in China were more than offset by a decline in Taiwan.

    SALES
    EUR millions                    Notes  Q4 2008 Q4 2007      %         At
                                                                    constant
                                                                    currency
                                                                           %

    New life sales
    Life single premiums                     2,327   3,447    (32)       (23)
    Life recurring premiums
     annualized                                366     456    (20)       (16)
    Total recurring plus 1/10 single           598     800    (25)       (19)

    New premium production accident
     and health insurance                      161     178    (10)       (18)
    New premium production general
     insurance                                  17      21    (19)       (14)

    Gross deposits (on and off
     balance) by line of business
    Fixed annuities                          1,676     433    N.M.       N.M.
    Variable annuities                         590     640     (8)       (18)
    Saving deposits                            590     704    (16)       (16)
    Retail mutual funds                        501     598    (16)       (33)
    Pensions and asset management            2,613   3,338    (22)       (28)
    Institutional guaranteed products        5,963   3,881      54        46
    Life reinsurance                             0       0       0         0
    Total gross deposits                    11,933   9,594      24        17

    Net deposits (on and off balance)
     by line of business
    Fixed annuities                            593    (759)    N.M.      N.M.
    Variable annuities                        (114)   (157)     27        27
    Saving deposits                           (535)     94     N.M.      N.M.
    Retail mutual funds                       (182)    266     N.M.      N.M.
    Pensions and asset management              257   1,081     (76)      (86)
    Institutional guaranteed products        1,679    (325)    N.M.      N.M.
    Life reinsurance                           (19)    (82)     77        79
    Total net deposits                       1,679     118     N.M.      N.M.



    EUR millions                         FY 2008   FY 2007      %  At constant
                                                                    currency %

    New life sales
    Life single premiums                  10,532    14,414    (27)    (17)
    Life recurring premiums
     annualized                            1,578     1,833    (14)     (5)
    Total recurring plus 1/10 single       2,631     3,274    (20)    (11)

    New premium production accident
     and health insurance                    614       680    (10)     (4)
    New premium production general
     insurance                                68        58     17      17

    Gross deposits (on and off
     balance) by line of business
    Fixed annuities                        4,057     1,145    N.M.    N.M.
    Variable annuities                     2,636     2,743     (4)      3
    Saving deposits                        2,473     2,648     (7)     (7)
    Retail mutual funds                    2,698     2,248     20      26
    Pensions and asset management         10,505    12,284    (14)     (9)
    Institutional guaranteed products     18,380    23,458    (22)    (16)
    Life reinsurance                           2         2      0      50
    Total gross deposits                  40,751    44,528     (8)     (3)

    Net deposits (on and off
     balance) by line of business
    Fixed annuities                           71    (4,388)   N.M.    N.M.
    Variable annuities                      (441)     (596)    26      20
    Saving deposits                         (699)      231    N.M.    N.M.
    Retail mutual funds                      590       797    (26)    (22)
    Pensions and asset management          1,769     2,527    (30)    (28)
    Institutional guaranteed products      2,185     3,981    (45)    (41)
    Life reinsurance                         (61)      (82)    26      21
    Total net deposits                     3,414     2,470     38      47


    REVENUE GENERATING INVESTMENTS

                                           At Dec.   At Sep.
                                                31        30
                                              2008      2008       %
    Revenue generating (total)         6   331,844   350,756      (5)
    Investments general account            130,481   131,738      (1)
    Investments for account of
     policyholders                         105,400   121,346     (13)
    Off balance sheet investments
     third parties                          95,963    97,672      (2)

Deposits

Total gross on and off balance deposits for the company increased by 24% to EUR 11.9 billion in Q4. The increase is mainly a result of the continued growth in fixed annuity deposits and strong demand for synthetic guaranteed investment contracts (GICs) in the Americas during Q4 2008. In the pension business in the Americas, sales of retirement plans held up well. Variable annuity sales as well as asset management and mutual fund sales declined due to the volatility in the equity markets in Q4 2008. Sales of on balance guaranteed investment contracts in Q4 2008 increased by 46% in local currency. AEGON sees limited opportunities to grow spread-based business profitably in the foreseeable future and announced on February 17, 2009, its decision to downsize the portfolio of institutional spread-based products.

Gross deposits in Central & Eastern Europe increased 18%. Higher pension deposits in all country units, reflecting growth of the business as well as the incorporation of new acquisitions, were partly offset by lower production of mutual funds and third party asset management products in Hungary due to the decline of equity markets.

Deposits in Asia increased by EUR 148 million due to the newly acquired asset management business in China.

Net deposits for the company amounted to EUR 1.7 billion as a result of strong fixed annuity and synthetic guaranteed investment contracts deposits, partly offset by net outflows of savings deposits in the Netherlands. In Central & Eastern Europe, the pension business continued to report strong net inflows.

    FINANCIAL OVERVIEW, Q4 GEOGRAPHICALLY

              United
    Americas Kingdom
         USD     GBP
                      Underlying earnings before tax by line of business
         227      18  Life and protection
        (623)      0  Individual savings and retirement products
          23     (23) Pensions and asset management
         131       0  Institutional products
        (170)      0  Life reinsurance
           0       3  Distribution
           0       0  General insurance
                      Interest charges and other
           0       0  Share in net results of associates
        (412)     (2) Underlying earnings before tax
      (1,330)    (15) Over/(under) performance of fair value items
      (1,742)    (17) Operating earnings before tax

                      Operating earnings before tax by line of business
         113      18  Life and protection
      (1,295)      0  Individual savings and retirement products
         (11)    (23) Pensions and asset management
         (84)      0  Institutional products
        (465)      0  Life reinsurance
           0       3  Distribution
           0       0  General insurance
                      Interest charges and other
           0       0  Share in net results of associates
      (1,742)     (2) Operating earnings before tax

         (10)    (16) Gains/(losses) on investments
        (499)      2  Impairment charges
          (1)     28  Other income/(charges)
      (2,252)     12  Income before tax
         393     (20) Income tax
      (1,859)     (8) Net income

        (279)     17  Net underlying earnings
      (1,136)      2  Net operating earnings
                                                                      amounts
                                                                           in
                                                                      million
                                                                          EUR
                                                                      (unless
                                                                    otherwise
                                                                      stated)
                                                             Holding,
                                                                other
                                   The  United     Other activities &   Total
                  Americas Netherlands Kingdom countries eliminations     EUR
    Underlying earnings
     before tax by
     line of business
    Life and
     protection        176         (37)     22       (40)           0     121
    Individual
     savings and
     retirement
     products         (416)        (20)      0         3            0    (433)
    Pensions and
     asset management   20         169     (12)        2            0     179
    Institutional
     products          100           0       0         0            0     100
    Life reinsurance  (114)          0       0         0            0    (114)
    Distribution         0         (22)      3         0            0     (19)
    General
     insurance           0         (15)      0        12            0      (3)
    Interest charges
     and other                                                    (17)    (17)
    Share in net
     results of
     associates          0           0       0         6           (1)      5
    Underlying
     earnings before
     tax              (234)         75      13       (17)         (18)   (181)
    Over/(under)
     performance of
     fair value items (933)        152     (19)        0           30    (770)
    Operating
     earnings before
     tax            (1,167)        227      (6)      (17)          12    (951)

    Operating earnings
     before tax by
     line of business
    Life and
     protection         96          26      22       (40)           0     104
    Individual
     savings and
     retirement
     products         (885)        (20)      0         3            0    (902)
    Pensions and
     asset management   (5)        258     (31)        2            0     224
    Institutional
     products          (54)          0       0         0            0     (54)
    Life reinsurance  (319)          0       0         0            0    (319)
    Distribution         0         (22)      3         0            0     (19)
    General
     insurance           0         (15)      0        12            0      (3)
    Interest charges
     and other                                                     13      13
    Share in net
     results of
     associates          0           0       0         6           (1)      5
    Operating
     earnings before
     tax            (1,167)        227      (6)      (17)          12    (951)

    Gains/(losses)
     on investments    (10)         84     (20)      (10)          92     136
    Impairment
     charges          (355)        (68)      5       (49)         (34)   (501)
    Other
    income/(charges)    (1)          0      36         1            2      38
    Income before
     tax            (1,533)        243      15       (75)          72  (1,278)
    Income tax         261        (119)    (26)        9          (29)     96
    Net income      (1,272)        124     (11)      (66)          43  (1,182)

    Net underlying
     earnings         (155)         80      19       (10)          (3)    (69)
    Net operating
     earnings         (759)        129       0       (10)          17    (623)

- Underlying loss of USD 412 million, including USD 839 million impact from steep decline in equity markets and USD 145 million impact from higher volatility assumptions

- Continued momentum in fixed annuity deposits, driving 11% increase in total value of new business; strong retirement plan sales; ttotal net deposits USD 3.0 billion

- Impact of USD 1.3 billion on earnings from fair value items, due to lower interest rates, lower equity markets, increased equity market volatility and underperformance of alternative assets

- Impairments of USD 499 million; USD 184 million on structured assets; USD 232 million on corporate credit

Overview

Financial markets accelerated their negative trend in the fourth quarter and the economy showed signs of considerable contraction. Equity markets showed a steep decline, volatilities spiked, credit risk increased and credit spreads widened to an extent not seen before, while at the same time, government bond yields came down to historic lows.

Results in Q4 2008 in the Americas were significantly impacted by the financial markets turmoil. Underlying earnings were down primarily due to the impact of a more than 20% decline in equity markets on reserve strengthening, accelerated amortization of deferred acquisition costs and lower fees. Also, long-term assumptions for equity market volatility were increased, resulting in a negative impact of USD 145 million primarily in the variable annuity line of business. In Q4 2007, underlying results in the life business included a favorable USD 52 million contribution to earnings from the update of mortality assumptions.

Fair value items showed a considerable underperformance of USD 1.3 billion, driven by alternative investment returns, the impact from an increase in implied volatility and lower interest rates on fair valuation of guarantees, hedge ineffectiveness and wider credit spreads.

Results in the Americas also included USD 499 million of impairments, including USD 184 million of structured asset impairments, primarily securities backed by subprime mortgages. Impairments of corporate bonds were concentrated in the high yield portfolio and were driven by a number of small impairments.

Sales of individual savings and retirement products rose sharply, driven by continued demand for fixed annuities. New life sales were down in all lines of business, however, particularly in BOLI/COLI (bank-owned/corporate-owned life insurance). Value of new business was up 11%, primarily due to higher fixed annuity sales.

Underlying earnings before tax

AEGON reported an underlying loss before tax in the Americas for Q4 2008 of USD 412 million:

- Earnings from Life & Protection declined 39% compared to Q4 2007 to USD 227 million. The decline in equity markets led to a charge of USD 65 million. In Q4 2007 underlying earnings included a favorable USD 52 million from updated mortality assumptions;

- Individual Savings & Retirement earnings were a loss of USD 623 million, due to the equity markets impact on minimum guarantee reserve strengthening and accelerated DPAC amortization (in total USD 587 million). Long-term assumptions for equity market volatility were increased, a one-off negative impact of USD 135 million. Earnings also include a charge of USD 40 million related to intangible assets from the acquisition of Merrill Lynch's life insurance businesses;

- Pensions & Asset Management earnings decreased to USD 23 million, a result of lower fees from declined asset balances;

- Earnings from the Institutional business were down 4% to USD 131 million on lower BOLI/COLI earnings. A decrease in short-term rates continued to produce strong positive spreads on institutional guaranteed products;

- In the Life Reinsurance business the underlying loss amounted to USD 170 million, including a USD 150 million due to the equity markets impact on minimum guarantee reserve strengthening, and an USD 45 million asset write-off.

Net income

AEGON reported a net loss for Q4 of USD 1,859 million in the Americas, including three significant items: underperformance of fair value items (USD 1.3 billion), impairment charges (USD 499 million) and a tax charge (USD 429 million).

The underperformance of fair value items comprised a number of different elements:

- Total fair value investments underperformed by USD 531 million as a result of alternative assets underperforming expected long-term returns and underperformance of credit derivatives and adjustments on other credit-related instruments;

- Lower interest rates, declining equity markets, increased equity market volatility and widening credit spreads contributed to a USD 798 million lower mark-to-market valuation for GMWB guarantees, total return annuities and Canadian segregated funds. The valuation of the fair value of liability guarantees includes sharply increased equity volatilities, as well as discount rates including a credit spread, a reflection of extremely dislocated and very illiquid markets.

Total impairment charges in the Americas during Q4 totaled USD 499 million. These impairments include USD 184 million of impairments on mortgage backed securities, of which the majority is backed by subprime hybrid adjustable rate mortgages. Net impairments on corporate bonds were USD 232 million. Other impairments include equity and commercial mortgage loan impairments.

The tax benefit from the underlying loss, impairments and mark-to-market losses on the fair value items was more than offset by significant additional taxes related to cross border intercompany reinsurance transactions (USD 429 million). These reinsurance treaties are accounted for at fair value in both tax jurisdictions, while gains in the United States are taxed at 35% and losses in Ireland are tax deductible at 12.5%. The driver of the tax losses in Ireland is credit spread widening. These tax losses are largely expected to reverse as the book matures and when credit spreads narrow.

Commissions and expenses

Total commissions and expenses increased 46% in Q4, primarily due to accelerated DPAC amortization following lower equity markets. Q4 operating expenses were level with operating expenses last year.

Sales and deposits

Total new life sales in the Americas were down 43% in the quarter, driven primarily by a decline in the BOLI/COLI business. Activity in the BOLI/COLI market has declined significantly as a result of the current financial crisis. Life reinsurance and life sales were down as well compared to last year, but were in line with Q3 2008 sales. However, the economic downturn continues to impact sales of both high net worth and equity-indexed universal life products in the middle market.

Total gross deposits were up 21% compared to last year on continued growth in fixed annuity sales (USD 2.3 billion) and strong demand for synthetic guaranteed investment contracts. In the pension and asset management business, sales of retirement plans came in strong, while total pension deposits were down in particular due to lack of terminal funding sales.

Managed assets clearly declined because of financial market turmoil, which also affected mutual fund sales as well as variable annuity deposits. Compared with Q4 2007 variable annuity deposits were down 17%.

Sales of accident and health products were in line with sales in Q3 2008.

Value of new business

The value of new business (VNB) in the Americas amounted to USD 167 million, and the internal rate of return (IRR) was 12.4%, both driven primarily by strong fixed annuity production. The VNB and IRR were negatively affected by hedge costs in the variable annuity business. Please refer to page 28 for more detailed information on VNB.

Revenue generating investments

AEGON's total revenue generating investments at the end of December 2008 totaled USD 286 billion, down 6% from three months earlier, on lower financial markets.

    AMERICAS - EARNINGS

    USD millions          Notes  Q4 2008 Q4 2007     %  FY 2008 FY 2007    %

    Underlying earnings
     before tax by line of
     business
    Life                             159     287   (45)     769     847   (9)
    Accident and health               68      86   (21)     363     428  (15)
    Life and protection              227     373   (39)   1,132   1,275  (11)
    Fixed annuities                   86      91    (5)     368     366    1
    Variable annuities              (709)     52   N.M.    (587)    288  N.M.
    Retail mutual funds                0       6   N.M.       8      21  (62)
    Individual savings
     and retirement
     products                       (623)    149   N.M.    (211)    675  N.M.
    Pensions and asset
     management                       23      36   (36)     150     166  (10)
    Institutional
     guaranteed products             127     107    19      544     374   45
    BOLI/COLI                          4      30   (87)      50      81  (38)
    Institutional
     products                        131     137    (4)     594     455   31
    Life reinsurance               (170)      27   N.M.     (93)    156  N.M.
    Share in net results
     of associates                     0       1   N.M.       1       0  N.M.
    Underlying earnings
     before tax                     (412)    723   N.M.   1,573   2,727  (42)
    Over/(under)
     performance of fair
     value items                  (1,330)      7   N.M.  (2,434)    149  N.M.
    Operating earnings
     before tax                   (1,742)    730   N.M.    (861)  2,876  N.M.

    Operating earnings
     before tax by line of
     business
    Life                              70     291   (76)     593     883  (33)
    Accident and health               43      91   (53)     321     443  (28)
    Life and protection              113     382   (70)     914   1,326  (31)
    Fixed annuities                 (110)    112   N.M.     (68)    486  N.M.
    Variable annuities            (1,185)     17   N.M.  (1,289)    205  N.M.
    Retail mutual funds                0       6   N.M.       8      22  (64)
    Individual savings
     and retirement
     products                     (1,295)    135   N.M.  (1,349)    713  N.M.
    Pensions and asset
     management                      (11)     46   N.M.      91     188  (52)
    Institutional
     guaranteed products             (76)     99   N.M.     (15)    379  N.M.
    BOLI/COLI                         (8)     34   N.M.      26      85  (69)
    Institutional
     products                        (84)    133   N.M.      11     464  (98)
    Life reinsurance                (465)     33   N.M.    (529)    185  N.M.
    Share in net results
     of associates                     0       1   N.M.       1       0  N.M.
    Operating earnings
     before tax                   (1,742)    730   N.M.    (861)  2,876  N.M.

    Gains/(losses) on
     investments                     (10)    172   N.M.    (103)    376  N.M.
    Impairment charges              (499)    (21)  N.M.  (1,138)    (65) N.M.
    Other
     income/(charges)                 (1)      0   N.M.       6       0  N.M.
    Income before tax             (2,252)    881   N.M.  (2,096)  3,187  N.M.
    Income tax                       393    (284)  N.M.      74  (1,003) N.M.
    Net income                    (1,859)    597   N.M.  (2,022)  2,184  N.M.

    Net underlying
     earnings                       (279)    555   N.M.   1,143   2,003  (43)
    Net operating
     earnings                     (1,136)    558   N.M.    (491)  2,098  N.M.

    Commissions and expenses       1,451     993    46    4,961   4,569    9
    of which operating expenses      527     525     0    2,167   2,124    2

    For the amounts in
     euro see the
     Financial Supplement.



    AMERICAS - SALES

    USD millions          Notes  Q4 2008 Q4 2007     %  FY 2008 FY 2007    %

    New life sales
    Life single premiums             262   1,095   (76)     931   2,509  (63)
    Life recurring
     premiums annualized             179     252   (29)     852   1,025  (17)
    Total recurring plus
     1/10 single                     205     362   (43)     945   1,276  (26)

    Life                             138     204   (32)     669     742  (10)
    BOLI/COLI                         15      90   (83)      36     207  (83)
    Life reinsurance                  52      68   (24)     240     327  (27)
    Total recurring plus
     1/10 single                     205     362   (43)     945   1,276  (26)

    New premium
     production accident
     and health insurance            205     249   (18)     870     898   (3)

    Gross deposits (on
     and off balance) by
     line of business
    Fixed annuities                2,328     610   N.M.   5,947   1,567  N.M.
    Variable annuities               747     900   (17)   3,680   3,723   (1)
    Retail mutual funds              396     796   (50)   2,813   2,865   (2)
    Pensions and asset
     management                    2,771   3,790   (27)  12,987  13,675   (5)
    Institutional
     guaranteed products           8,075   5,772    40   26,945  32,097  (16)
    Life reinsurance                   1       0   N.M.       4       3   33
    Total gross deposits          14,318  11,868    21   52,376  53,930   (3)

    Net deposits (on and
     off balance) by line
     of business
    Fixed annuities                  896  (1,124)   N.M.    103  (6,004)  N.M.
    Variable annuities              (150)   (249)     40   (811)   (844)    4
    Retail mutual funds             (219)    350   N.M.     778     964   (19)
    Pensions and asset
     management                       24   1,292   (98)   2,660   4,107   (35)
    Institutional
     guaranteed products           2,433    (343)   N.M.  3,203   5,447   (41)
    Life reinsurance                 (25)   (112)     78    (89)   (112)   21
    Total net deposits             2,959    (186)   N.M.  5,844   3,558    64


    REVENUE GENERATING
    INVESTMENTS
                                  At Dec.   At Sep.
                                       31        30
                                     2008      2008     %
    Revenue generating
     investments (total)      6   286,167   304,706    (6)
    Investments general
     account                      120,790   127,130    (5)
    Investments for
     account of
     policyholders                 58,943    68,420   (14)
    Off balance sheet
     investments third
     parties                      106,434   109,156    (2)


    For the amounts in
     euro see the
     Financial Supplement.



    - Underlying earnings declined 31% to EUR 75 million

- Life sales down 44%, due to a standstill in group pension market; retail sales held up well

Overview

The Netherlands reported a net income in Q4 of EUR 124 million. Underlying earnings were down 31% to EUR 75 million compared to Q4 2007. The positive impact of an exceptional dividend received and better technical results in the pension business was more than offset by decreases in investment income as well as (one-off) charges in other lines of business. These charges include system and project related expenses, restructuring charges and adverse technical results.

Fair value items overperformed long-term expectations by EUR 152 million. Fair value items include:

a) Under/overperformance of assets held at fair value through profit and loss, backing liabilities of a specific portfolio of group pension contracts held in the general account;

b) Differences in fair value between guarantees and related hedges, referenced as hedge ineffectiveness, previously reported in gains/losses on investments;

c) Private equity investments.

Impairments were EUR 68 million, while investment gains amounted to EUR 84 million.

Underlying earnings before tax

- Life reported a loss of EUR 34 million on lower investment income and higher costs, including EUR 27 million of system and project related expenses as well as slightly lower technical results;

- In Accident and Health the underlying loss came in at EUR 3 million, due to higher claims, lower investment income and higher expenses;

- Earnings in the Savings business came in at a loss of EUR 20 million. Competition in the savings market is fierce, putting pressure on margins and volumes. Q4 2007 earnings included EUR 15 million of non-recurring accelerated amortization of deferred costs;

- Earnings from Pensions & Asset Management amounted to EUR 169 million, the result of an exceptional EUR 75 million dividend and better technical results of EUR 37 million;

- Earnings from Distribution include an exceptional restructuring charge of EUR 21 million. Also, the slowdown in the real estate market led to lower overall revenues. Earnings in Q4 2007 included a one-off charge of EUR 12 million related to the harmonization of claw back provisions of the Unirobe Meeus Groep;

- General insurance earnings were down, mainly due to higher claims, lower investment income and expenses to improve and grow the business.

Net income

Fair value items include the under/overperformance on assets held at fair value through profit and loss, backing liabilities of a specific portfolio of group pension contracts held in the general account. In Q4 these assets underperformed long-term expected returns by EUR 149 million. Private equity investments, included in fair value items, significantly underperformed long term excepted return by EUR 124 million.

Also, in order to maintain consistency in definitions, starting in Q4 2008, the net impact of the fair value movements of guarantees and the related hedges has been included in fair value items. Previously, differences in fair value between guarantees and related hedges, referenced as hedge ineffectiveness, were reported in gains/losses on investments. Earnings include a EUR 425 million positive impact from hedge ineffectiveness.

The valuation of the fair value of liability guarantees includes sharply increased interest rate and equity volatilities, as well as discount rates including a credit spread, a reflection of extremely dislocated and very illiquid markets.

Impairments of EUR 68 million were primarily related to equities and high yield bonds.

Investment gains amounted to EUR 84 million and include gains on derivatives considered as economic hedges and realized gains on the sale of bonds, offset by lower real estate values.

Commissions and expenses

Commissions and expenses increased by 5%, due primarily to higher operating expenses. Operating expenses increased as a result of a one-time restructuring charge of EUR 21 million as well as a one-off EUR 27 million of system and project related expenses, while Q4 2007 included a total EUR 27 million of one-time charges in the Savings and Distribution businesses.

Sales and deposits

Group pension sales declined significantly during the quarter - the result of market volatility and clients' increased reluctance to take decisions. At the same time, the Dutch group pension market has become increasingly competitive. Renewal rates did, however, continue to improve. Sales figures for Q4 2007 also included several large contracts.

Sales of both single and regular premium individual life products held up reasonably well with a decline of 13%. Lower expiring deferred annuities resulted in lower sales of immediate annuities. Regular premium production declined as there is less appetite in the market for universal life products. During the year, life production increased 3%, while the Dutch life market contracted by an estimated 1% in 2008.

Sales in accident & health were stable, mainly due to a saturated market. Alternative disability products have been successfully introduced, and partly offset the decline in WIA (the disability product introduced in 2006) sales during the quarter. Sales of general insurance products were in line with Q3 2008.

Gross deposits were down by 10% compared with Q4 2007, due to fierce competition. Net deposits showed a decline as well, as clients withdrew balances in excess of the State guaranteed level of EUR 100,000 per account as concerns about the stability of banks, in general, increased.

Value of new business

The value of new business (VNB) increased to EUR 13 million and the internal rate of return improved to 10.8%, primarily as a result of a change in business mix.

Please refer to page 28 for more detailed information on VNB.

Revenue generating investments

At the end of December 2008, revenue generating investments totaled EUR 63 billion; flat compared to September 2008 levels.

    THE NETHERLANDS - EARNINGS

    EUR millions                Notes     Q4     Q4    %    FY      FY    %
                                        2008   2007       2008    2007

    Underlying earnings before
     tax by line of business
    Life                                 (34)    53  N.M.   43     189  (77)
    Accident and health                   (3)     8  N.M.   23      39  (41)
    Life and protection                  (37)    61  N.M.   66     228  (71)
    Saving products                      (20)   (14) (43)  (14)      0  N.M.
    Individual savings and
     retirement products                 (20)   (14) (43)  (14)      0  N.M.
    Pensions and asset
     management                          169     62  173   308     163   89
    Distribution                         (22)    (7) N.M.    3      16  (81)
    General insurance                    (15)     5  N.M.    8       8    0
    Share in net results
     of associates                         0      2  N.M.    7       3  133
    Underlying earnings
     before tax                           75    109  (31)  378     418  (10)
    Over/(under) performance of
     fair value items                    152   (148) N.M. (165)   (381)   57
    Operating earnings
     before tax                          227    (39) N.M.  213      37  N.M.

    Operating earnings before
     tax by line of business
    Life                                  29     36  (19)   75     141  (47)
    Accident and health                   (3)     8  N.M.   23      39  (41)
    Life and protection                   26     44  (41)   98     180  (46)
    Saving products                      (20)   (14) (43)  (14)      0  N.M.
    Individual savings and
     retirement products                 (20)   (14) (43)  (14)      0  N.M.
    Pensions and asset
     management                          258    (69) N.M.  111    (170) N.M.
    Distribution                         (22)    (7) N.M.    3      16  (81)
    General insurance                    (15)     5  N.M.    8       8    0
    Share in net results
     of associates                         0      2  N.M.    7       3  133
    Operating earnings
     before tax                          227    (39) N.M.  213      37  N.M.

    Gains/(losses) on
     investments                          84    132  (36)   20     465  (96)
    Impairment charges                   (68)     0  N.M. (138)    (24) N.M.
    Other income/(charges)                 0      0    0     0      30  N.M.
    Income before tax                    243     93  161    95     508  (81)
    Income tax                          (119)     2  N.M.   (1)     98  N.M.
    Net income                           124     95   31    94     606  (84)

    Net underlying earnings               80     96  (17)  326     339   (4)
    Net operating earnings               129    (23) N.M.  139      41  N.M.

    Commissions and expenses             376    357    5 1,269   1,188    7
    of which operating expenses          297    267   11   934     843   11



    THE NETHERLANDS - SALES

    EUR millions                Notes     Q4     Q4    %     FY      FY    %
                                        2008   2007        2008    2007

    New life sales
    Life single premiums                 225    287  (22) 1,324   1,354   (2)
    Life recurring
     premiums annualized                  18     44  (59)    86     124  (31)
    Total recurring plus
     1/10 single                          41     73  (44)   219     260  (16)

    Life                                  20     23  (13)    97      94    3
    Pensions                              21     49  (57)   122     166  (27)
    Total recurring plus
     1/10 single                          41     73  (44)   219     260  (16)

    New premium production
     accident and health insurance         4      4    0     15      18  (17)
    New premium production
     general insurance                     7      6   17     28      26    8

    Gross deposits (on and off
     balance) by line of business
    Saving deposits                      590    704  (16) 2,473   2,648   (7)
    Pensions and asset management         83     41  102    228     390  (42)
    Total gross deposits                 673    745  (10) 2,701   3,038  (11)

    Net deposits (on and off
     balance) by line of business
    Saving deposits                     (535)    95  N.M.  (699)    232  N.M.
    Pensions and asset management         14   (119) N.M.   (38) (1,256)  97
    Total net deposits                  (521)   (24) N.M.  (737) (1,024)  28


    REVENUE GENERATING INVESTMENTS

                                          At     At
                                        Dec.   Sep.
                                          31     30
                                        2008   2008    %
    Revenue generating
     investments (total)          6    63,079 63,310  (0)
    Investments general
     account                           32,163 31,455   2
    Investments for account of
     policyholders                     19,133 19,566  (2)
    Off balance sheet investments
     third parties                     11,783 12,289  (4)

- Underlying earnings before tax declined to GBP 13 million, mainly on lower fund related charges in the pension business

- Continued strong new life sales, up 5%

- Higher margins lead to further increase in value of new business

ADD: /FIRST AND FINAL ADD -- LNTH001 -- AEGON N.V. Earnings/

Overview

Lower corporate bond and equity markets led to a decline in earnings from the United Kingdom. New life sales held up well with strong sales of group pensions, annuities and unit-linked bonds. Value of new business also continued its recent strong growth, a result primarily of a shift in business mix to higher margin products.

Underlying earnings before tax

Underlying earnings before tax declined in Q4 to GBP 13 million, due primarily to the impact of lower equity and corporate bond markets on fund related charges in AEGON's unit linked pension business.

- Earnings from Life & Protection decreased GBP 3 million to GBP 18 million as strong underlying growth was masked by a one-off benefit in the comparable quarter last year;

- A GBP 8 million loss from Pensions & Asset Management was the result mainly of lower fund related charges;

- Distribution activities saw an increase in earnings to GBP 3 million as a result of cost containment and a release of incentive payments reserves.

Net income

Lower underlying earnings, underperformance of fair value items and losses on investments are the main drivers of the net loss of GBP 8 million in Q4. The fair value increase of guarantees embedded in the 'Five-for Life' variable annuity product resulted, net of hedging, in a loss of GBP 15 million. In addition, losses on investments amounted to GBP 16 million, an accounting loss on a derivative instrument for which hedge accounting could no longer be applied.

Commissions and expenses

Total commissions and expenses were down 2% due to a change in business mix. Operating expenses increased by 5% to GBP 114 million, mainly as a result of investments in the business and restructuring costs. As part of the group- wide cost savings program, operating expenses are expected to be reduced in 2009.

Sales and deposits

In Q4 2008, AEGON had a 10% market share in the life market in the United Kingdom (9% for full year 2008). New life sales continue to be strong in Q4, up 5% at GBP 289 million. Higher sales of annuities and group pensions were partly offset by weaker individual pension sales.

- Life annualized premium production increased 35% to GBP 66 million, mainly as a result of continued strong sales of annuities in Q4, as AEGON continued its focus on the rapidly-growing at-retirement market;

- Sales of pensions declined 2% in Q4 to GBP 223 million, mainly due to lower individual pension sales. However, sales of group pensions and unit-linked bonds continued to be strong (see Financial Supplement for more detail).

Total deposits declined to GBP 152 million as continued turmoil on world financial markets resulted in lower sales of retail mutual funds and third party managed assets.

Value of new business

The value of new business (VNB) increased 25% to GBP 50 million, as margins showed further improvement in Q4. AEGON's strategy in the United Kingdom is to move more of its business to high-margin areas, such as annuities. As a result, the internal rate of return on new business in the United Kingdom rose to 14.0%.

Please refer to page 28 for more detailed information on VNB.

Revenue generating investments

At the end of December 2008, revenue generating investments totaled GBP 47.1 billion, a decline of 1% from GBP 47.6 billion at the end of Q3 2008. The decrease reflects mainly the weakness in equity markets.

    UNITED KINGDOM - EARNINGS

    GBP millions             Notes     Q4     Q4    %       FY      FY      %
                                     2008   2007          2008    2007

    Underlying earnings before
     tax byline of business *)
    Life                               18     21   (14)     46      54    (15)
    Life and protection                18     21   (14)     46      54    (15)
    Pensions and asset
     management                        (8)    36   N.M.     68     138    (51)
    Distribution                        3    (10)  N.M.     (1)     (7)    86
    Share in net results of
     associates                         0      0     0       0       1    N.M.
    Underlying earnings
     before tax                        13     47   (72)    113     186    (39)
    Over/(under) performance of
     fair value items                 (15)     0   N.M.    (15)      0    N.M.
    Operating earnings
     before tax                        (2)    47   N.M.     98     186    (47)

    Operating earnings before
     tax by line of business
    Life                               18     21   (14)     46      54    (15)
    Life and protection                18     21   (14)     46      54    (15)
    Pensions and asset
     management                       (23)    36   N.M.     53     138    (62)
    Distribution                        3    (10)  N.M.     (1)     (7)    86
    Share in net results of
     associates                         0      0     0       0       1    N.M.
    Operating earnings
     before tax                        (2)    47   N.M.     98     186    (47)

    Gains/(losses) on
     investments                      (16)     1   N.M.    (17)     (5)   N.M.
    Impairment charges                  2     (2)  N.M.    (18)     (3)   N.M.
    Other income/(charges)       9     28    (17)  N.M.    (14)      5    N.M.
    Income before tax                  12     29   (59)     49     183    (73)
    Income tax attributable to
     policyholder return              (28)    18   N.M.     14      (5)   N.M.
    Income before income
     tax on shareholders
     return                           (16)    47   N.M.     63     178    (65)
    Income tax on
     shareholders return                8     (3)  N.M.      1       5    (80)
    Net income                         (8)    44   N.M.     64     183    (65)

    Net underlying earnings            17     43   (60)    104     188    (45)
    Net operating earnings              2     43   (95)     89     188    (53)

    Commissions and
     expenses                         173    177    (2)    662     647      2
    of which operating
     expenses                         114    109     5     414     391      6

    For the amounts in euro see
     the Financial Supplement.



    UNITED KINGDOM - SALES

    GBP millions             Notes     Q4     Q4     %      FY      FY     %
                                     2008   2007          2008    2007

    New life sales              10
    Life single premiums            1,548  1,555    (0)  6,470   6,984    (7)
    Life recurring premiums
     annualized                       134    120    12     575     484    19
    Total recurring plus
     1/10 single                      289    276     5   1,222   1,183     3

    Life                               66     49    35     251     210    20
    Pensions                          223    227    (2)    971     973    (0)
    Total recurring plus
     1/10 single                      289    276     5   1,222   1,183     3

    Gross deposits (on and off
     balance) by line of business
    Pensions and asset
     management                       152    343   (56)    542     903   (40)
    Total gross deposits              152    343   (56)    542     903   (40)

    Net deposits (on and off
     balance) by line of business
    Pensions and asset
     management                        11    144  (92)   (322)     282   N.M.
    Total net deposits                 11    144  (92)   (322)     282   N.M.


    REVENUE GENERATING INVESTMENTS

                                        At       At
                                      Dec.     Sep.
                                        31       30
                                      2008     2008    %
    Revenue generating
     investments (total)         6  47,122   47,565   (1)
    Investments general
     account                         4,964    4,678    6
    Investments for account of
     policyholders                  39,869   40,587   (2)
    Off balance sheet investments
     third parties                   2,289    2,300   (0)


    For the amounts in euro see the
    Financial Supplement.

- Underlying loss before tax of EUR 17 million - including a DPAC charge of EUR 43 million

- Continued strong pension deposits in Central & Eastern Europe and retail mutual fund sales in China

Overview

Earnings from Other countries were affected by an accelerated DPAC amortization and equity impairments in Taiwan. Deposits rose sharply, a result of the new asset management joint venture in China and continued strong growth in the company's pension business in Central & Eastern Europe. Life sales were 34% lower, as declining equity markets impacted single premium unit-linked sales in Poland and sales in Asia.

Underlying earnings before tax

Underlying earnings before tax from Other countries declined to a negative of EUR 17 million in Q4.

- Earnings from Life & Protection were severely impacted by an accelerated amortization of deferred acquisition costs in Taiwan of EUR 43 million, a reflection of a decline in interest rates and equity markets. Central & Eastern Europe and Spain, however, contributed resilient positive results;

- The asset management joint venture in China performed well. As a result, earnings from mutual funds increased to EUR 2 million;

- Earnings from General insurance were higher because of lower claims and a EUR 2 million reserve release in Hungary;

- Earnings from associate companies declined as a higher contribution from CAM, AEGON's Spanish associate, were more than offset by additional start-up costs at AEGON's joint ventures in India and a lower contribution from La Mondiale, AEGON's French partner.

Net income

The net loss of EUR 66 million in Q4 for Other countries includes an equity impairment of EUR 45 million, more than offsetting positive results in Central & Eastern Europe and Spain. Sales of investments resulted in losses on investments of EUR 10 million.

Commissions and expenses

Commissions and expenses rose 45% in Q4 to EUR 175 million.

- Operating expenses increased 25% as a result of continued growth in AEGON's pension business in Central & Eastern Europe and further investment in the company's bank distribution operations in Spain;

- Commissions, meanwhile, were down 24%;

- Accelerated amortization of DPAC in Taiwan lead to an additional one- time amortization of EUR 43 million;

- Deferred expenses declined, primarily because of lower production in Taiwan.

Excluding the DPAC charge in Taiwan, commissions and expenses increased only 9% to EUR 132 million.

Sales and deposits

New life sales in Q4 2008 declined 34% to EUR 58 million.

- In Central & Eastern Europe, sales of recurring premium life insurance rose 13% thanks to particularly strong performances in the Czech Republic and Slovakia. Single premium sales in Poland were sharply lower, however, because of the declining equity market. Total new life sales in Central & Eastern Europe amounted to EUR 22 million, down 27%;

- In Spain, sales of life insurance rose to EUR 22 million, due primarily to the extraordinary activity in AEGON's Spanish life business, following changes in pension legislation;

- AEGON's largest bank partner in Spain, which is an associate and therefore not consolidated, tripled sales to EUR 77 million (on a 100% basis), as a result of a successful strategy to increase the insurance penetration ratio among their existing client base;

- In Asia, new life sales decreased to EUR 13 million as increased sales in China were more than offset by a decline in Taiwan.

Gross deposits rose 77% in Q4 2008 to EUR 394 million. Net deposits were, although down 24%, positive at EUR 90 million. The increase in gross deposits reflects:

- The continued strong performance of AEGON's asset management joint venture in China.

- Strong growth in the company's pension business in Central & Eastern Europe.

General insurance

Non-life sales in Hungary declined to EUR 11 million as a result of continued focus on writing profitable business in an increasingly competitive environment.

Value of new business

The value of new business (VNB) from Other countries decreased by 36% to EUR 36 million primarily as a result of lower sales. In Asia, the decrease in VNB was mainly a reflection of lower sales. In Central & Eastern Europe, VNB declined on the back of lower sales in Hungary and Poland, as weak equity markets continued to impact sales levels. In Spain, VNB increased mainly as a result of higher sales in CAM and positive changes in the business mix.

The internal rate of return in Asia rose to 15.8% as a result of a change in product mix. The reduction of the internal rate of return to 29.8% in Central & Eastern Europe is mainly a reflection of lower sales in Poland. In Spain, AEGON's bank distribution partnerships continued to deliver high rates of return.

Please refer to page 28 for more detailed VNB information.

Revenue generating investments

Continued strong growth of the underlying businesses resulted in 2008 year-end revenue generating investments of EUR 13.6 billion, a decline of 4% from the end of Q3 2008.

    OTHER COUNTRIES - EARNINGS

    EUR millions               Notes     Q4      Q4    %    FY      FY     %
                                       2008    2007       2008    2007

    Underlying earnings before
     tax by line of business *)
    Life                                (41)     5   N.M.   11      53   (79)
    Accident and health                   1      0   N.M.    5       4    25
    Life and protection                 (40)     5   N.M.   16      57   (72)
    Variable annuities                    0      0     0    (1)      0   N.M.
    Saving products                       0      0     0     0      (1)  N.M.
    Retail mutual funds                   3      2    50    13       4   N.M.
    Individual savings and
     retirement products                  3      2    50    12       3   N.M.
    Pensions and asset
     management                           2     (1)  N.M.   12      11     9
    General insurance                    12      8    50    37      39    (5)
    Share in net results
     of associates                        6      8   (25)   16      32   (50)
    Underlying earnings
     before tax                         (17)    22   N.M.   93     142   (35)

    Gains/(losses) on
     investments                        (10)     1   N.M.  (10)     14   N.M.
    Impairment charges                  (49)     0   N.M.  (68)      0   N.M.
    Other income/(charges)                1      1     0     1       0   N.M.
    Income before tax                   (75)    24   N.M.   16     156   (90)
    Income tax                            9    (32)  N.M.  (25)    (83)   70
    Net income                          (66)    (8)  N.M.   (9)     73   N.M.

    Net underlying
     earnings                           (10)   (10)    0    64      60     7
    Net operating earnings              (10)   (10)    0    64      60     7

    Commissions and
     expenses                           175    121    45   494     372    33
    of which operating
     expenses                            66     53    25   211     177    19


    *) In Other countries, underlying earnings equals operating earnings.



    OTHER COUNTRIES - SALES

    EUR millions               Notes     Q4     Q4     %     FY      FY     %
                                       2008   2007         2008    2007

    New life sales                10
    Life single premiums                 69    199   (65)   445   1,013   (56)
    Life recurring
     premiums annualized                 52     69   (25)   189     252   (25)
    Total recurring plus
     1/10 single                         58     88   (34)   233     353   (34)

    Life                                 58     88   (34)   232     352   (34)
    Saving products                       0      0     0      1       1     0
    Total recurring plus
     1/10 single                         58     88   (34)   233     353   (34)

    New premium production
     accident and health insurance        2      1   100      6       6     0
    New premium production
     general insurance                   10     15   (33)    40      32    25

    Gross deposits (on and
     off balance)
    Variable annuities                   10     18   (44)   126      22   N.M.
    Retail mutual funds                 173     43   N.M.   779     154   N.M.
    Pensions and asset
     management                         211    162    30    737     579    27
    Total gross deposits                394    223    77  1,642     755   117

    Net deposits (on and
    off balance)
    Variable annuities                    5     17   (71)   113      20   N.M.
    Retail mutual funds                 (56)    18   N.M.    59      93   (37)
    Pensions and asset
     management                         141     83    70    397     368     8
    Total net deposits                   90    118   (24)   569     481    18

    REVENUE GENERATING
    INVESTMENTS

                                          At       At
                                        Dec.     Sep.
                                          31       30
                                        2008     2008     %
    Revenue generating
     investments (total)           6  13,609   14,154    (4)
    Investments general
     account                           6,243    5,399    16
    Investments for account of
     policyholders                     2,067    2,600   (21)
    Off balance sheet investments
     third parties                     5,299    6,155   (14)



    FINANCIAL OVERVIEW, FULL YEAR GEOGRAPHICALLY

              United
    Americas Kingdom
         USD     GBP
                             Underlying earnings before tax by
                              line of business
       1,132      46         Life and protection
        (211)      0         Individual savings and retirement products
         150      53         Pensions and asset management
         594       0         Institutional products
         (93)      0         Life reinsurance
           0      (1)        Distribution
           0       0         General insurance
                             Interest charges and other
           1       0         Share in net results of associates
       1,573      98         Underlying earnings before tax
      (2,434)    (15)        Over/(under) performance of fair value items
        (861)     83         Operating earnings before tax

                             Operating earnings before tax by
                              line of business
         914      46         Life and protection
      (1,349)      0         Individual savings and retirement products
          91      53         Pensions and asset management
          11       0         Institutional products
        (529)      0         Life reinsurance
           0      (1)        Distribution
           0       0         General insurance
                             Interest charges and other
           1       0         Share in net results of associates
        (861)     98         Operating earnings before tax

        (103)    (17)        Gains/(losses) on investments
      (1,138)    (18)        Impairment charges
           6     (14)        Other income/(charges)
      (2,096)     49         Income before tax
          74      15         Income tax
      (2,022)     64         Net income

       1,143     104         Net underlying earnings
        (491)     89         Net operating earnings



                                                                      amounts
                                                                           in
                                                                      million
                                                                          EUR
                                                                      (unless
                                                                    otherwise
                                                                      stated)
                                                             Holding,
                                                                other
                                   The  United     Other activities &   Total
                  Americas Netherlands Kingdom countries eliminations     EUR
    Underlying earnings
     before tax by
     line of business
    Life and
     protection        771          66      58        16            0     911
    Individual
     savings and
     retirement
     products         (144)        (14)      0        12            0    (146)
    Pensions and
     asset management  103         308      85        12            0     508
    Institutional
     products          405           0       0         0            0     405
    Life reinsurance   (63)          0       0         0            0     (63)
    Distribution         0           3      (2)        0            0       1
    General
     insurance           0           8       0        37            0      45
    Interest charges
     and other                                                   (112)   (112)
    Share in net
     results of
     associates          1           7       0        16            0      24
    Underlying
     earnings before
     tax             1,073         378     141        93         (112)  1,573
    Over/(under)
     performance of
     fair value
     items          (1,660)       (165)    (19)        0          225  (1,619)
    Operating
     earnings before
     tax              (587)        213     122        93          113     (46)

    Operating earnings
     before tax by
     line of business
    Life and
     protection        623          98      58        16            0     795
    Individual
     savings and
     retirement
     products         (920)        (14)      0        12            0    (922)
    Pensions and
     asset management   62         111      66        12            0     251
    Institutional
     products            8           0       0         0            0       8
    Life reinsurance  (361)          0       0         0            0    (361)
    Distribution         0           3      (2)        0            0       1
    General
     insurance           0           8       0        37            0      45
    Interest charges
     and other                                                    113     113
    Share in net
     results of
     associates          1           7       0        16            0      24
    Operating
     earnings before
     tax              (587)        213     122        93          113     (46)

    Gains/(losses)
     on investments    (71)         20     (21)      (10)         117      35
    Impairment
     charges          (776)       (138)    (22)      (68)         (34) (1,038)
    Other
     income/(charges)    4           0     (17)        1            0     (12)
    Income before
     tax            (1,430)         95      62        16          196  (1,061)
    Income tax          51          (1)     18       (25)         (64)    (21)
    Net income      (1,379)         94      80        (9)         132  (1,082)

    Net underlying
     earnings          780         326     131        64          (67)  1,234
    Net operating
     earnings        (335)         139     112        64           89      69



    NET UNDERLYING EARNINGS GEOGRAPHICALLY

    EUR millions                   Notes     Q4    Q4    %     FY     FY    %
                                           2008  2007        2008   2007

    Americas                               (155)  387  N.M.   780  1,464  (47)
    The Netherlands                   11     80    96  (17)   326    339   (4)
    United Kingdom                           19    61  (69)   131    275  (52)
    Other countries                         (10)  (10)   0     64     60    7
    Holding and other                        (3)  (18)  83    (67)  (105)  36
    Net underlying earnings                 (69)  516  N.M. 1,234  2,033  (39)

    OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS

    EUR millions

    Operating earnings before tax          (951)  522  N.M.   (46) 2,367  N.M.
    (Over)/under performance of
     fair value items - Americas            933    (3) N.M.  1,660  (109) N.M.
    (Over)/under performance of
     fair value items - The
     Netherlands                      11   (152)  148  N.M.    165   381  (57)
    (Over)/under performance of
     fair value items - United
     Kingdom                                 19     -  N.M.     19     -  N.M.
    (Over)/under performance of
     fair value items - Holding
     and other                              (30)    -  N.M.   (225)    -  N.M.
    Underlying earnings before tax         (181)  667  N.M.  1,573 2,639  (40)

    Net underlying earnings                 (69)  516  N.M.  1,234 2,033  (39)



    AMERICAS - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS

    USD millions

    Over/(under) performance of
     fair value items by line of
     business
    Life and protection                    (114)    8  N.M.   (218)   51  N.M.
    Individual savings and
     retirement products                   (672)  (15) N.M. (1,138)   38  N.M.
    Pensions and asset management           (34)   11  N.M.    (59)   22  N.M.
    Institutional products                 (215)   (3) N.M.   (583)    9  N.M.
    Life reinsurance                       (295)    6  N.M.   (436)   29  N.M.
    Total over/(under)
     performance of fair value
     items                               (1,330)    7  N.M. (2,434)  149  N.M.

    Total over/(under) performance
     of fair value items in EUR            (933)    3  N.M. (1,660)  109  N.M.



    THE NETHERLANDS - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS

    EUR millions                      11

    Over/(under) performance of
     fair value items by line of
     business
    Life and protection                      63   (17) N.M.     32   (48) N.M.
    Pensions and asset management            89  (131) N.M.   (197) (333)  41
    Total over/(under)
     performance of fair value
     items                                  152  (148) N.M.   (165) (381)  57



    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           (15)    -    0     (15)    -    0
    Total over/(under) performance
     of fair value items                    (15)    -    0     (15)    -    0

    EXPLANATION
    Certain assets held by AEGON Americas and AEGON The Netherlands 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 assets 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 AEGON UK 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 gain of EUR 30 mln in Q4 2008 on the fair value movement on
    these bonds.



    SALES

    EUR millions                  Q4 2008 Q4 2007     %  FY 2008 FY 2007    %


    New life sales                    598     800   (25)   2,631   3,274  (20)
    Gross deposits (on and off
     balance)                      11,933   9,594    24   40,751  44,528   (8)

    New life sales
    Life single premiums            2,327   3,447   (32)  10,532  14,414  (27)
    Life recurring premiums
     annualized                       366     456   (20)   1,578   1,833  (14)
    Total recurring plus 1/10
     single                           598     800   (25)   2,631   3,274  (20)

    Life                              265     322   (18)   1,101   1,294  (15)
    Saving products                     0       0     0        1       1    0
    Pensions                          283     368   (23)   1,341   1,589  (16)
    BOLI/COLI                          11      64   (83)      25     151  (83)
    Life reinsurance                   39      46   (15)     163     239  (32)
    Total recurring plus 1/10
     single                           598     800   (25)   2,631   3,274  (20)

    New premium production
     accident and health
     insurance                        161     178   (10)     614     680  (10)
    New premium production
    general insurance                  17      21   (19)      68      58   17

    Gross deposits (on and off
     balance)
    Fixed annuities                 1,676     433   N.M.   4,057   1,145  N.M.
    Variable annuities                590     640    (8)   2,636   2,743   (4)
    Saving products                   590     704   (16)   2,473   2,648   (7)
    Retail mutual funds               501     598   (16)   2,698   2,248   20
    Pensions and asset
     management                     2,613   3,338   (22)  10,505  12,284  (14)
    Institutional guaranteed
     products                       5,963   3,881    54   18,380  23,458  (22)
    Life reinsurance                    0       0     0        2       2    0
    Total gross deposits           11,933   9,594    24   40,751  44,528   (8)

    Net deposits (on and off
     balance) by line of business
    Fixed annuities                   593    (759)  N.M.      71  (4,388) N.M.
    Variable annuities               (114)   (157)   27     (441)   (596)  26
    Saving deposits                  (535)     94   N.M.    (699)    231  N.M.
    Retail mutual funds              (182)    266   N.M.     590     797  (26)
    Pensions and asset
     management                       257   1,081   (76)   1,769   2,527  (30)
    Institutional guaranteed
     products                       1,679    (325)  N.M.   2,185   3,981  (45)
    Life reinsurance                  (19)    (82)   77      (61)    (82)  26
    Total net deposits              1,679     118   N.M.   3,414   2,470   38

    EMPLOYEE NUMBERS
                                        At     At
                                      Dec.   Dec.
                                        31     31
                                      2008   2007

    Number of employees             31,425 30,414



    VALUE OF NEW BUSINESS AND IRR
                                VNB   VNB               VNB    VNB
                                EUR   EUR               EUR    EUR
    EUR                 Notes    Q4    Q4        %       FY     FY     %
    millions,                  2008  2007              2008   2007
    after tax

    Americas                    124   104       19      412    425    (3)
    The Netherlands              13    10       30       43     51   (16)
    United Kingdom               60    56        7      234    230     2

    Asia                          5    21      (76)      20     78   (74)
    Central and
     Eastern Europe              13    19      (32)      74     72     3

    Other
    European
    Countries                    18    16       13       54     71   (24)
    Total                       233   226        3      837    927   (10)


                              IRR %  IRR%

    Americas                   12.4  13.1
    The Netherlands            10.8   9.8
    United Kingdom             14.0  13.4
    Asia                       15.8  14.6
    Central and
    Eastern
    Europe                     29.8  49.4
    Other
    European
    Countries                  48.3  39.4
    Total                      16.5  18.0

    MODELED NEW BUSINESS, APE AND DEPOSITS

                                Premium                 Premium
                               business                business
                                APE                     APE
    EUR                 Notes    Q4    Q4       %        FY     FY    %
    millions                   2008  2007              2008   2007
                           12
    Americas                    279   385     (28)    1,097  1,362  (19)
    The Netherlands              75    77      (3)      300    278    8
    United Kingdom              341   387     (12)    1,514  1,704  (11)
    Asia                         14    41     (66)       63    168  (63)
    Central and
    Eastern
    Europe                       26    30     (13)      109    122  (11)
    Other
    European
    Countries                    74    63      17       237    234    1
    Total                       809   982     (18)    3,321  3,869  (14)


                               Deposit business        Deposit business
                                   Deposits                Deposits

    Americas                  8,718 6,874      27    30,151 36,337  (17)
    Asia                          4     5     (20)       24      7  N.M.
    Central and
    Eastern
    Europe                       19     9     111        65     27  141
    Other
    European
    Countries                     0     2     N.M.       10     10    0
    Total                     8,742 6,890      27    30,249 36,381  (17)


    VNB/PVNBP SUMMARY
                         Premium                       Premium
                        business                      business
                      VNB     PVNBP VNB/  VNB/ APE   VNB     PVNBP VNB/  VNB/
                                    PVNBP                          PVNBP  APE
    EUR         Notes  Q4             %      %        FY            %      %
    millions          2008                           2008
                   13
    Americas            55    1,414   3.9     19.5    193    5,496  3.5  17.6
    The Netherlands     13      476   2.7     16.8     43    2,324  1.9  14.4
    United Kingdom      60    2,288   2.6     17.7    234   10,322  2.3  15.5
    Asia                 4       66   6.4     30.5     19      344  5.6  30.5
    Central and
    Eastern
    Europe               9      158   6.0     36.8     48      674  7.2  44.3
    Other
    European
    Countries           18      554   3.2     23.9     54    1,884  2.8  22.6
    Total              159    4,956   3.2     19.6    592   21,043  2.8  17.8

                         Deposit                       Deposit
                        business                      business
                      VNB     PVNBP VNB/    VNB/     VNB     PVNBP VNB/  VNB/
                                    PVNBP Deposits                 PVNBP Dep-
                   13                                                   osits
    Americas            70   10,143   0.7      0.8    219   34,251  0.6   0.7
    Asia                 0       23   1.3      7.8      1      179  0.4   2.7
    Central and
    Eastern
    Europe               4      166   2.4     20.4     25      835  3.0  39.4
    Other
    European
    Countries            0        0   1.7      1.7      0       10  3.3   3.3
    Total               74   10,331   0.7      0.8    246   35,275  0.7   0.8


    Notes:

    1)  Certain assets held by AEGON Americas and AEGON The Netherlands 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 assets 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 AEGON UK 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
        gain of EUR 30 mln in Q4 2008 on the fair value movement on these
        bonds.
    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)  As of 2008, real estate for own use (both general account and for
        account of policyholders) has been reclassified from revenue
        generating investments to other assets.
    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.
    9)  Included in other non-operating income/(charges) are charges made to
        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.
    10) Includes production on investment contracts without a discretionary
        participation feature of which the proceeds are
        not recognized as revenues but are directly added to our investment
        contract liabilities.
    11) 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.
    12) APE = recurring premium + 1/10 single premium.
    13) PVNBP: Present Value New Business Premium.



    CONDENSED CONSOLIDATED BALANCE SHEET
                                           At Dec. 31     At Dec. 31
                                                 2008           2007
    EUR millions                                                        %

    Investments general account               130,481        132,861   (2)
    Investments for account of
     policyholders                            105,400        142,384  (26)
    Investments in associates                     595            472   26
    Deferred expenses and
     rebates                                   12,794         11,488   11
    Other assets and
     receivables                               27,766         18,484   50
    Cash and cash equivalents                  10,223          8,431   21
    Total assets                              287,259        314,120   (9)

    Shareholders' equity                        6,055         15,151  (60)
    Convertible core capital
     securities                                 3,000              0    0
    Other equity instruments                    4,699          4,795   (2)
    Minority interest                               6             16  (63)
    Group equity                               13,760         19,962  (31)
    Insurance contracts general
     account                                   97,377         88,496   10
    Insurance contracts for account
     of policyholders                          60,808         78,394  (22)
    Investment contracts general
     account                                   36,231         36,089    0
    Investment contracts for account
     of policyholders                          45,614         63,756  (28)
    Other liabilities                          33,469         27,423   22
    Total equity and liabilities              287,259        314,120   (9)

    CAPITAL BASE

    Group equity                               13,760         19,962  (31)
    Trust pass-through securities                 161            143   13
    Subordinated borrowings                        41             34   21
    Senior debt related to
     insurance activities                          69          1,255  (95)
    Total capital base                         14,031         21,394  (34)



    CONDENSED CONSOLIDATED INCOME STATEMENT

    EUR millions (except    Notes Q4 2008 Q4 2007   %   FY 2008 FY 2007    %
     per share data)

    Premium income                  5,228   6,678 (22)   22,409  26,900  (17)
    Investment income               2,644   2,633   0     9,965  10,457   (5)
    Fee and commission
     income                           437     495 (12)    1,703   1,900  (10)
    Other revenues                      1       2 (50)        5      14  (64)
    Total revenues                  8,310   9,808 (15)   34,082  39,271  (13)
    Income from reinsurance
     ceded                            483     355  36     1,633   1,546    6
    Results from financial
     transactions                 (7,629)   (971) N.M.  (28,195)  4,545  N.M.
    Other income                        1       2 (50)        6     214  (97)
    Total income                    1,165   9,194 (87)    7,526  45,576  (83)

    Benefits and expenses           1,758   8,256 (79)    6,970  41,763  (83)
    Impairment charges               (53)      38 N.M.      526     117  N.M.
    Interest charges and
     related fees                     743     149 N.M.    1,113     474  135
    Other charges                       0       0   0         2     181  (99)
    Total charges                   2,448   8,443 (71)    8,611  42,535  (80)

    Share in net results of
     associates                         5      11 (55)       24      36  (33)
    Income before tax             (1,278)     762 N.M.   (1,061)  3,077  N.M.
    Income tax                         96   (114) N.M.      (21)   (526)  96
    Net income attributable
     to equity holders of
     AEGON N.V.                   (1,182)     648 N.M.   (1,082)  2,551  N.M.

    Net income per common
     share
    Basic earnings per share       (0.82)    0.40 N.M.    (0.92)   1.47  N.M.
    Dilluted earnings per
     share                         (0.82)    0.40 N.M.    (0.92)   1.47  N.M.



    CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                               At Dec. 31 At Dec. 31
                                                     2008       2007
    EUR millions                          Notes

    Shareholders' equity at January 1              15,151     18,605
    Net income                                     (1,082)     2,551
    Movements in foreign currency
     translations reserve                            (170)    (1,445)
    Movements in revaluation reserves              (6,651)    (2,164)
    Total recognized net income for the
     period                                        (7,903)    (1,058)

    Dividends paid on ordinary shares                (548)      (583)
    Preferred dividend                               (112)       (85)
    Repurchased and sold own shares                  (217)    (1,438)
    Coupons on perpetuals (net of tax)               (189)      (175)
    Coupons on convertible core capital
     securities                                      (121)         0
    Other changes                                      (6)      (115)
    Shareholders' equity at end of period           6,055     15,151



    CONDENSED CONSOLIDATED CASH FLOW STATEMENT

    EUR millions              Notes     Q4     Q4    %      FY      FY     %
                                      2008   2007         2008    2007

    Cash flow from operating
     activities                       (451) 1,567  N.M.  1,323  (1,340)  199

    Cash flow from investing
     activities
    Purchase and disposal of
     intangible assets                  (6)    (4) (50)    (12)    (10)  (20)
    Purchase and disposal of
     equipment and other
     assets                            (25)   (26)   4      65     (48)  N.M.
    Purchase, disposal and
     dividends of subsidiaries
     and associates                   (287)  (954)  70    (451) (2,621)   83
                                      (318)  (984)  68    (398) (2,679)   85

    Cash flow from financing
     activities
    Issuance and purchase of
     share capital                       0   (773) N.M.   (217) (1,438)   85
    Dividends paid                       0    105  N.M.   (660)   (668)    1
    Issuance, repayment and
     coupons of convertible
     capital securities              3,000      0  N.M.  3,000       0   N.M.
    Issuance, repayment and
     coupons of perpetuals             (67)   (67)   0    (368)    510   N.M.
    Issuance, repayment and
     finance interest on
     borrowings                     (1,014)  (188) N.M.   (294)    897   N.M.
                                     1,919   (923) N.M.  1,461    (699)  N.M.

    Net increase/(decrease)
    in cash and cash
    equivalents                      1,150   (340) N.M.  2,386  (4,718)  N.M.



    AMOUNTS PER COMMON SHARE

                               Notes     Q4      Q4   %      FY       FY   %
                                       2008    2007        2008     2007

    Net income in EUR              1  (0.82)   0.40 N.M.  (0.92)    1.47 N.M.
    Net income fully diluted
     in EUR                        1  (0.82)   0.40 N.M.  (0.92)    1.47 N.M.

    Net income in USD                 (1.20)   0.57 N.M.  (1.35)    2.01 N.M.
    Net income fully diluted.
     in USD                           (1.20)   0.57 N.M.  (1.35)    2.01 N.M

    Net operating earnings in
     EUR                           1  (0.44)   0.23 N.M.  (0.15)    0.99 N.M.
    Net operating earnings
     fully diluted in EUR          1  (0.44)   0.23 N.M.  (0.15)    0.99 N.M.

    Net operating earnings in
     USD                              (0.66)   0.33 N.M.  (0.22)    1.35 N.M.
    Net operating earnings
     fully diluted in USD             (0.66)   0.33 N.M.  (0.22)    1.35 N.M.


                                          At     At
                                        Dec.   Dec.
                                          31     31
                                        2008   2007

    Shareholders' equity in EUR    2    2.60   8.69 (70)

    Shareholders' equity in USD    2    3.62  12.79 (72)


    NET INCOME PER COMMON SHARE CALCULATION

    EUR millions (except per   Notes     Q4      Q4   %      FY      FY    %
     share data)                       2008    2007        2008    2007

    Net income                       (1,182)    648 N.M. (1,082)   2,551 N.M.
    Preferred dividend                    0       0   0    (112)    (85) (32)
    Coupons on perpetuals               (49)    (51)  4    (189)   (175)  (8)
    Net income / (loss)
     attributable to ordinary
     shareholders                    (1,231)    597 N.M. (1,383)   2,291 N.M.


    Weighted average number of
     common shares outstanding        1,515   1,561  (3)  1,507    1,561  (3)
    Net income per share              (0.82)   0.40 N.M.  (0.92)    1.47 N.M.

    Quarterly net income per
     common share

    first quarter                      0.07    0.42 (83)   0.07     0.42 (83)
    second quarter                     0.08    0.34 (76)   0.15     0.76 (80)
    third quarter                     (0.25)   0.31 N.M.  (0.10)    1.07 N.M.
    fourth quarter                    (0.82)   0.40 N.M.  (0.92)    1.47 N.M.



    SEGMENT REPORTING

    EUR millions              Notes Q4 2008 Q4 2007    % FY 2008 FY 2007    %

    Operating earnings before
     tax geographically
    Americas                         (1,167)    506  N.M.   (587)  2,102  N.M.
    The Netherlands                     227     (39) N.M.    213      37  N.M.
    United Kingdom                       (6)     67  N.M.    122     271  (55)
    Other countries                     (17)     22  N.M.     93     142  (35)
    Holding and other
     activities                           8     (46) N.M.     95    (195) N.M.
    Eliminations                          4      12  (67)     18      10   80
    Total operating earnings
     before tax                        (951)    522  N.M.    (46)  2,367  N.M.

    Revenues geographically
    Americas                          3,566   4,510  (21) 13,267  16,340  (19)
    The Netherlands                   1,473   1,374    7   6,675   6,373    5
    United Kingdom                    2,629   3,144  (16) 11,777  13,692  (14)
    Other countries                     608     741  (18)  2,264   2,798  (19)
    Holding and other
     activities                          85      88   (3)    256     244    5
    Eliminations                        (51)    (49)  (4)   (157)   (176)  11
    Total revenues                    8,310   9,808  (15) 34,082  39,271  (13)

    Revenues
    Life insurance gross
     premiums                         4,590   6,080  (25) 19,795  24,210  (18)
    Accident and health
     insurance                          503     475    6   1,997   2,122   (6)
    General insurance                   135     123   10     617     568    9
    Total gross premiums              5,228   6,678  (22) 22,409  26,900  (17)
    Investment income                 2,644   2,633    0   9,965  10,457   (5)
    Fee and commission income           437     495  (12)  1,703   1,900  (10)
    Other revenues                        1       2  (50)      5      14  (64)
    Total revenues                    8,310   9,808  (15) 34,082  39,271  (13)



    INVESTMENTS GEOGRAPHICALLY

                 United
     Americas   Kingdom
          USD       GBP At December 31, 2008
                        Investments
        1,436        39 Shares
       83,846     4,915 Bonds
       19,194        10 Loans
       15,635         0 Other financial assets
          679         0 Investments in real estate
      120,790     4,964 Investments general account
            0    17,360 Shares
            0    12,675 Bonds
       58,943     2,381 Separate accounts and investment funds
            0     6,376 Other financial assets
            0     1,077 Investments in real estate
       58,943    39,869 Investments for account of policyholders

      179,733    44,833 Investments on balance sheet
      106,434     2,289 Off balance sheet investments third parties
      286,167    47,122 Total revenue generating investments *)

                        Investments
       94,444     4,859 Available-for-sale
       19,194        10 Loans
            0         0 Held-to-maturity
       65,416    38,887 Financial assets at fair value through profit or loss
          679     1,077 Investments in real estate
      179,733    44,833 Total investments on balance sheet


    INVESTMENTS GEOGRAPHICALLY

                 United
     Americas   Kingdom
          USD       GBP At December 31, 2007
                        Investments
        2,386        48 Shares
       98,834     4,104 Bonds
       19,813         5 Loans
       12,890         0 Other financial assets
          755         0 Investments in real estate
      134,678     4,157 Investments general account
            0    23,291 Shares
            0    13,360 Bonds
       81,663     2,820 Separate accounts and investment funds
            0     4,785 Other financial assets
            0     1,839 Investments in real estate
       81,663    46,095 Investments for account of policyholders

      216,341    50,252 Investments on balance sheet
      109,658     2,863 Off balance sheet investments third parties
      325,999    53,115 Total revenue generating investments *)

                        Investments
      104,391     4,080 Available-for-sale
       19,813         5 Loans
            0         0 Held-to-maturity
       91,382    44,328 Financial assets at fair value through profit or loss
          755     1,839 Investments in real estate
      216,341    50,252 Total investments on balance sheet



                                                                      amounts
                                                                           in
                                                                      million
                                                                          EUR
                                                                      (unless
                                                                    otherwise
                                                                      stated)
                                                            Holding,
                                                              other
                                                       activities &
                                     The  United     Other  elimin-     Total
    At December 31, Americas Netherlands Kingdom countries   ations       EUR
    2008
    Investments
    Shares                1,031       1,297      41       183    50     2,602
    Bonds                60,247      18,298   5,161     4,827    20    88,553
    Loans                13,792      10,416      10     1,116     0    25,334
    Other financial
     assets              11,235         112       0       117     0    11,464
    Investments in
     real estate            488       2,040       0         0     0     2,528
    Investments
     general account     86,793      32,163   5,212     6,243    70   130,481
    Shares                    0       6,416  18,225       167    (9)   24,799
    Bonds                     0      11,675  13,307       330     0    25,312
    Separate accounts
     and investment
     funds               42,353           0   2,500     1,420     0    46,273
    Other financial
     assets                   0       1,042   6,693       150     0     7,885
    Investments in
     real estate              0           0   1,131         0     0     1,131
    Investments for
     account of
     policyholders       42,353      19,133  41,856     2,067    (9)  105,400

    Investments on
     balance sheet      129,146      51,296  47,068     8,310    61   235,881
    Off balance sheet
     investments third
     parties             76,478      11,783   2,403     5,299     0    95,963
    Total revenue
    generating
    investments *)      205,624      63,079  49,471    13,609    61   331,844

    Investments
    Available-for-sale   67,862      19,110   5,101     2,602    72    94,747
    Loans                13,792      10,416      10     1,116     0    25,334
    Held-to-maturity          0           0       0     2,269     0     2,269
    Financial assets
     at fair value
     through profit or
     loss                47,004      19,730  40,826     2,323   (11)  109,872
    Investments in
     real estate            488       2,040   1,131         0     0     3,659
    Total investments
     on balance sheet   129,146      51,296  47,068     8,310    61   235,881


                                                                      amounts
                                                                           in
                                                                      million
                                                                          EUR
                                                                      (unless
                                                                    otherwise
                                                                      stated)
                                                            Holding,
                                                              other
                                                       activities &
                                     The  United     Other  elimin-     Total
    At December 31, Americas Netherlands Kingdom countries   ations       EUR
    2007
    Investments
    Shares                1,621       1,997      66       181    70     3,935
    Bonds                67,138      18,225   5,595     3,951    22    94,931
    Loans                13,459       8,517       7       571     0    22,554
    Other financial
     assets               8,756          66       0        98     0     8,920
    Investments in
     real estate            513       2,008       0         0     0     2,521
    Investments
     general account     91,487      30,813   5,668     4,801    92   132,861
    Shares                    0       9,736  31,757       212   (24)   41,681
    Bonds                     0      10,628  18,216       248     0    29,092
    Separate accounts
     and investment
     funds               55,474           0   3,845     2,165     0    61,484
    Other financial
     assets                   0         990   6,525       104     0     7,619
    Investments in
     real estate              0           0   2,508         0     0     2,508
    Investments for
     account of
     policyholders       55,474      21,354  62,851     2,729   (24)  142,384

    Investments on
     balance sheet      146,961      52,167  68,519     7,530    68   275,245
    Off balance sheet
     investments third
     parties             74,491      13,476   3,903     3,355     0    95,225
    Total revenue
    generating
    investments *)      221,452      65,643  72,422    10,885    68   370,470

    Investments
    Available-for-sale   70,913      19,163   5,563     2,310    98    98,047
    Loans                13,459       8,517       7       571     0    22,554
    Held-to-maturity          0           0       0     1,876     0     1,876
    Financial assets
     at fair value
     through profit or
     loss                62,076      22,479  60,441     2,773   (30)  147,739
    Investments in
     real estate            513       2,008   2,508         0     0     5,029
    Total investments
     on balance sheet   146,961      52,167  68,519     7,530    68   275,245

*) As of 2008, real estate for own use (both general account and for account of policyholders) has been reclassified from revenue generating investments to other assets. The comparative 2007 information has been adjusted accordingly.

    ASSETS AND CAPITAL GEOGRAPHICALLY
                                                                      amounts
                                                                           in
                                                                      million
                                                                          EUR
                                                                      (unless
                                                                    otherwise
                                                                      stated)
              United
    Americas Kingdom                           The  United     Other    Total
         USD     GBP          Americas Netherlands Kingdom countries      EUR

                     At December
                     31, 2008
     216,558  52,038 Assets    155,607      63,811  54,633    10,473  284,524
                     business
                     units

                     Other                                              2,735
                     assets

                     Total assets on                                  287,259
                     balance sheet

      10,617   1,257 Capital in  7,629       2,954   1,320     1,948   13,851
                     units

                     Total                                             14,031
                     capital
                     base

                     Other net                                           (180)
                     liabilities

                     Total                                             13,851

                     At December
                     31, 2007

     243,946  55,495 Assets    165,713      62,009  75,668     9,205  312,595
                     business
                     units

                     Other                                              1,525
                     assets

                     Total assets on                                  314,120
                     balance sheet

      19,056   2,166 Capital in 12,945       3,079   2,954     1,413   20,391
                     units

                     Total                                             21,394
                     capital
                     base

                     Other net                                         (1,003)
                     liabilities

                     Total                                             20,391


    RECONCILIATION NON-GAAP MEASURES TO INCOME BEFORE TAX

    EUR millions            Notes  Q4 2008  Q4 2007    % FY 2008 FY 2007    %

    Net operating earnings            (623)     399  N.M.     69   1,805  (96)
    Income tax on operating
     earnings                         (328)     123  N.M.   (115)    562  N.M.
    Operating earnings
     before tax                       (951)     522  N.M.    (46)  2,367  N.M.
    Net gains and losses on
     investments                       136      281  (52)     35     746  (95)
    Other income                         1        2  (50)      6     214  (97)
    Impairment charges                (501)     (17) N.M. (1,038)    (76) N.M.
    Other charges                        1        0  N.M.     (1)   (182)  99
    Policyholder tax                    36      (26) N.M.    (17)      8  N.M.
    Income before tax               (1,278)     762  N.M. (1,061)   3,077 N.M.


    Currencies
    Income statement items: average rate 1 EUR = USD 1.4660 (2007: USD
     1.3683).
    Income statement items: average rate 1 EUR = GBP 0.7961 (2007: GBP
     0.6838).
    Balance sheet items: closing rate 1 EUR = USD 1.3917 (2007: USD 1.4721).
    Balance sheet items: closing rate 1 EUR = GBP 0.9525 (2007: GBP 0.7334).

    Notes:
    1)    After deduction of preferred dividend and coupons on perpetuals.
    2)    Shareholders' equity per share is calculated after deduction of the
          preferred share capital of EUR 2.1 billion (at Dec. 31, 2007:
          EUR 2.1 billion) and considering the number of treasury shares. The
          number of common shares used in the calculation of
          shareholders' equity per share is 1,515 million (at Dec. 31, 2007:
          1,500 million).

The interim condensed consolidated financial statements included in Appendix III have been prepared in accordance with IAS 34 'Interim financial reporting'. It does not include all of the information required for full financial statements and should therefore be read together with the 2007 consolidated financial statements of AEGON N.V. as included in AEGON's Annual Report over 2007.

The interim condensed consolidated financial statements included in Appendix III have been prepared in accordance with the historical cost convention as modified by the revaluation of investment properties and those financial instruments (including derivatives) and financial liabilities that have been measured at fair value.

As of January 1, 2008, AEGON reclassified, on the face of its balance sheet, the real estate for own use from Investments general account and Investments for account of policyholders to Other assets and receivables. In addition, AEGON reclassified cash flows from real estate held for own use as cash flows from operating activities to investing activities, to the extent that they relate to real estate that is occupied by AEGON's own employees. The comparative 2007 information has been adjusted accordingly. This change reduced Investments general account by EUR 330 million and Investments for account of policyholder by EUR 141 million with an offsetting increase in Other assets and receivables of EUR 471 million.

All other accounting policies and methods of computation applied in the interim financial statements are the same as those applied in the 2007 consolidated financial statements, which were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union. For AEGON this is equal to IFRS as published by the International Accounting Standards Board. The published figures in these interim financial statements are unaudited.

Condensed consolidated income statement The result from financial transactions in 2008 amounted to a loss of EUR 28.2 billion compared to a gain of EUR 4.5 billion in 2007. This decrease primarily reflects losses on investments for account of policyholders. These losses are offset by a decrease in the benefits and expenses line which decreases from an amount of EUR 41.8 billion in 2007 to EUR 7.0 billion in 2008.

Capital and funding

The capital management section, on page 3 provides information on issuances, repurchases and repayments of debt and equity securities during the current interim reporting period.

Investment impairments

Page 6 of the results release includes information on net impairments recognized in Q4 of 2008.

Condensed consolidated statement of changes in equity

Page 3 of the results release includes information on the movements in shareholder's equity.

Critical accounting estimates

Fair value measurement

Fair value measurement of financial assets and liabilities has been subject of industry-wide discussions between preparers, regulators and users of financial statements. The distressed markets in the second half of 2008 resulted in challenges related to the fair value measurement of financial instruments because of far less liquidity in the market, forced sales resulting from deleveraging activities and asset/liability programs.

The table below shows a detailed breakdown of debt instruments held at fair value (amounts in EUR million):

    Financial Assets 2008
                                     Quotations  Valuation      Total
                                      in active  technique
                                     market and  not based
                                      valuation  on market
                                      technique observable
                                       based on     inputs
                                         market
                                     observable
                                         inputs
    Debt instruments held at fair
     value:
    Assets Backed Securities -
    Housing -Related                      1,565        312      1,877
    Assets Backed Securities - Other      5,982        182      6,164
    Residential Mortgage Backed
    Securities                            4,592        331      4,923
    Commercial Mortgage Backed
    Securities                            4,643         74      4,717
    Financial                            23,287         95     23,382
    Industrial                           26,233         54     26,287
    Utility                               6,463          0      6,463
    Sovereign exposure                   20,934         18     20,952
    Total                                93,699      1,066     94,765

    Financial Assets 2007            Quotations  Valuation      Total
                                      in active  technique
                                     market and  not based
                                      valuation  on market
                                      technique observable
                                       based on     inputs
                                         market
                                     observable
                                         inputs
    Debt instruments held at fair
     value:
    Assets Backed Securities -
    Housing -Related                      2,934         13      2,947
    Assets Backed Securities - Other      7,387        180      7,567
    Residential Mortgage Backed
    Securities                            5,331          0      5,331
    Commercial Mortgage Backed
    Securities                            4,902          1      4,903
    Financial                            25,228        122     25,350
    Industrial                           26,464         34     26,498
    Utility                               6,420          3      6,423
    Sovereign exposure                   19,428         26     19,454
    Total                                98,094        379     98,473


    Equity market sensitivities

Fluctuations in the equity markets have affected AEGON's profitability, capital position and sales of equity related products in the past and may continue to do so. Exposure to equity markets exists in both assets and liabilities. Equity exposure exists through direct equity investments, guarantees on minimum return or accumulation guarantees in insurance and investment contracts and impact on fee income related to charges on policyholder account balances.

A significant assumption related to estimated gross profits on variable annuities and variable life insurance products in the United States and some of the smaller country units, is the annual long-term growth rate of the underlying assets. As equity markets do not move in a systematic manner, assumptions as to the long-term growth rate are made after considering the effects of short-term variances from the long-term assumptions (a reversion to the mean assumption). The reconsideration of this assumption may affect the original DPAC or VOBA amortization schedule, referred to as DPAC or Value of Business Acquired (VOBA) unlocking. The difference between the original DPAC or VOBA amortization schedule and the revised schedule, which is based on estimates of actual and future gross profits, is recognized in the income statement as an expense or a benefit in the period of determination. At September 30, 2008, the reversion to the mean assumptions for variable products, primarily variable annuities in the United States were: gross long- term equity growth rate of 9%; gross short-term growth rate of 15%. The reversion period for the short-term rate is five years. The significant decreases in equity markets in Q4 2008 (S&P 500: -23%) resulted in a 25% gross short-term growth rate. This rate was unlocked to a 15% annual short-term growth rate which led to a pre tax charge of approximately USD 566 million.

    The results of equity sensitivity tests are non-linear. The main reason
for this is due to equity options sold to clients that are embedded in some of
AEGON's products and that more severe scenarios could cause accelerated DAC
amortization and guaranteed minimum benefits provisioning, while moderate
scenarios may not.



                                         Estimated          Estimated
    Sensitivity analysis 2008           effects on         effects on
                                        net income             equity
    EUR millions
    Immediate change of

    Equity increase 20%                        354                536
    Equity decrease 20%                       (764)              (840)

Guarantees valuation

Guarantees embedded in certain pension, life and variable annuity contracts of AEGON USA and AEGON The Netherlands are measured at fair value. These contracts include long-term guarantees that are embedded in the contracts which for accounting purposes are valued separately.

For financial reporting purposes AEGON distinguishes between the following types of minimum guarantees:

- Financial guarantees: these guarantees are treated as bifurcated embedded derivatives, valued at fair value and presented as derivatives;

- Total return annuities: these guarantees are not bifurcated from their host contracts, valued at fair value and presented as part of insurance contracts;

- Life contingent guarantees in the US: these guarantees are not bifurcated from their host contracts, valued in accordance with insurance accounting and presented together with insurance liabilities; and

- Life contingent guarantees in The Netherlands: these guarantees are not bifurcated from their host contracts, valued at fair value and presented together with the underlying insurance contracts which are also valued at fair value.

Fair value movements of guarantees and related hedges are recognized in operating earnings; the fair value movements are excluded from underlying earnings.

Fair value guarantees contributed a net loss before tax of EUR 139 million (Q4 2007: EUR 134 million) to operating earnings. In Q4 2008 the total guarantee reserves increased by EUR 3.0 billion including an offset related to the impact of credit spread. Hedges offset related to this increase amounted to EUR 2.9 billion.

Business combinations

On February 26, 2008, AEGON has entered into an agreement to acquire 100% of Ankara Emeklilik Anonim Sirketi (Ankara Emeklilik), a Turkish life insurance and pension provider, from Polis Bakim ve Yardim Sandigi. The transaction, subject to regulatory approval in Turkey, was closed in the third quarter of 2008. Ankara Emeklilik has a well-established presence in the Turkish life insurance and private pension market, with over 54,000 pension fund members and approximately EUR 35 million in assets under management (Source: Pension Monitoring Center - February 18, 2008). Ankara Emeklilik sells its products and services through a variety of different channels and has an agreement in place to distribute through a nationwide network of 236 branches belonging to Sekerbank.

On April 21, 2008, AEGON and China's Industrial Securities have completed the establishment of their asset management joint venture following the recent final approval by the regulatory authorities. Under the agreement, AEGON has acquired a 49% interest in Industrial Fund Management Company (IFMC), a Chinese mutual fund manager with approximately EUR 3 billion assets under management as of March 31, 2008. Industrial Securities, one of China's leading securities companies, will retain the remaining 51% of IFMC. The initial agreement was announced on May 28, 2007. The joint venture will be renamed AEGON Industrial Fund Management Company. Both shareholders will be equally represented in the Board of Directors. The current management team, led by CEO Yang Dong, will continue to lead AEGON Industrial FMC with the objective of becoming one of the top players in the Chinese fund management market. Over the past two years, assets under management have increased from EUR 600 million to EUR 3 billion.

On June 30, 2008, AEGON completed the 100% purchase of the registered capital of UNIQA Asset Management Company and Heller-Saldo 2000 Pension Fund Management Company, both Hungarian entities, from UNIQA Insurance Company.

The agreement was signed on February 21, 2008 and it was subject to regulatory approval which was subsequently received. Following the acquisition, assets under management increased by approximately EUR 300 million (Source: Hungarian Financial Supervisory Authority (HFSA) 3Q 2007 figures).

On June 30, 2008, AEGON Hungary Pension Fund merged with 'Uniqa and Public Service Pension Fund'. As a result of the merger, AEGON is the second largest pension fund provider in Hungary.

In July 2008, AEGON finalized the acquisition of the Turkish life insurance and pension provider Ankara Emeklilik.

On September 30, 2008, AEGON has signed an agreement to create a new joint venture with Caja Navarra to distribute health products.

In Q3 2008, AEGON Religare started life operations in India. AEGON and Ranbaxy Promoter group jointly entered the life insurance business in India. AEGON holds a 26% stake in the life company.

In October 2008, AEGON signed an agreement to acquire a 50% stake in Brazilian life insurer Mongeral SA Seguros e Prevedencia, further strengthening the company's position in the fast-growing Latin American market.

On October 31, 2008, AEGON has completed the acquisition of a 50% stake in the life insurance and pension company of the Catalan-based savings bank Caixa Terrassa. The partnership gives AEGON access for the first time to Catalonia, one of Spain's wealthiest regions with a population of more than seven million people.

In December 2008, AEGON has completed the acquisition of the Polish pension company PTE Skarbiec Emerytura SA, after receiving final regulatory approval. AEGON initiated the transaction in June 2007 as part of a broader strategy to strengthen the company's businesses in Central & Eastern Europe.

On June 30, 2008, AEGON completed the planned merger of its pension fund management company PTE AEGON with BRE Bank's PTE Skarbiec-Emerytura. As part of the merger agreement, AEGON acquired BRE Bank's shareholding in the newly combined pension fund. With the acquisition, AEGON became Poland's fifth largest pension fund manager, with a market share of approximately 6%. The combined fund has some 800,000 members and more than EUR 1.8 billion in assets under management.

Commitments and contingencies

There have been no material changes in contingent assets and liabilities reported in the 2007 consolidated financial statements of AEGON.

Capital management

On December 1, 2008 AEGON completed the transaction to secure EUR 3 billion in additional core capital from Vereniging AEGON, funded by the Dutch State. The additional capital for AEGON is part of broader support that the Dutch government agreed to make available to fundamentally sound and viable banks and insurers in the Netherlands.

AEGON accessed the capital through its largest shareholder, Association AEGON, which was set up precisely for the purpose of protecting the long-term interest of the company's stakeholders.

The additional funds from Vereniging AEGON strengthened AEGON's capital buffer - an important safeguard against any further downturn in global equity and credit markets.

In return for the additional capital, AEGON issued special non-voting securities to Vereniging AEGON. Vereniging AEGON will use income from these securities to service its loan from the Dutch State. Of the total EUR 3 billion, AEGON has the right to return EUR 1 billion to the State at any point before December 1, 2009 should financial markets improve and the company decides it no longer needs this extra EUR 1 billion in capital.

Importantly, this arrangement will ensure there is no change to AEGON's overall ownership structure and will avoid dilution of voting rights for existing shareholders. The Dutch State will not become a shareholder in AEGON, but the government has appointed two representatives to the company's Supervisory Board.

Events after the balance sheet date

In January 2009, AEGON has agreed to acquire Banca Transilvania's 50% shareholding in BT AEGON, the two companies' jointly-owned Romanian pension business. AEGON will pay approximately EUR 11 million for the stake, which will give AEGON full control of the pension business.

AEGON and Banca Transilvania (BT) will remain partners. As part of the transaction, the two companies will sign a distribution agreement covering both life insurance and pension products.

As an international life insurance, pension and investment company based in The Hague, AEGON has businesses in over twenty markets in the Americas, Europe and Asia. AEGON companies employ approximately 31,500 people and have over 40 million customers across the globe.

    Key figures              2008              2007

    Underlying earnings
     before tax              EUR 1.57 billion  EUR 2.64 billion
    New life sales           EUR 2.63 billion  EUR 3.27 billion

    Gross deposits           EUR 40.75 billion EUR 44.53 billion

    Revenue generating       EUR 332 billion   EUR 370 billion
     investments
    (At December 31)

    Financial supplement:
    AEGON's Q4 2008 Financial supplement is available on http://www.aegon.com.

Video interview Alex Wynaendts: available on http://www.aegon.com at 7.45 a.m.

Record date:

The record date for attending and voting at the Annual General Meeting of Shareholders of AEGON N.V. is March 23, 2009.

Disclaimers

Cautionary note regarding non-GAAP measures

This press release includes certain non-GAAP financial measures: net operating earnings, operating earnings before tax, (net) underlying earnings and value of new business. The reconciliation of net operating earnings and operating earnings before tax to the most comparable IFRS measures is provided on page 35. A reconciliation of (net) underlying earnings to operating earnings before tax is provided on page 26.

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 United Kingdom, because those businesses operate and are managed primarily in those currencies. Certain comparative information presented on a constant currency basis eliminates the effects of changes in currency exchange rates. None of this information is a substitute for or superior to financial information about us presented in EUR, which is the currency of our primary financial statements.

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 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 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 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
    3:00 pm CET

    Audio webcast on http://www.aegon.com
    Call-in numbers (listen only):
    USA: +1-480-629-1990
    UK: +44-208-515-2301
    NL: +31-20-796-5332

    Website: http://www.aegon.com

SOURCE AEGON N.V.