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Aegon Reports Net Income of EUR 358 Million in
Q3 2016
  • USA - Nederlands


News provided by

United Business Media

Nov 10, 2016, 02:00 ET

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Solid earnings supported by expense savings - limited impact from assumption changes
and model updates

<pre>
    - Underlying earnings of EUR 461 million[*]; realized expense savings and favorable
      equity markets were more than offset by the effects of adverse US mortality experience
      and lower interest rates
    - Limited net impact from assumption changes and model updates of EUR (81) million; all
      reported in other charges[*]
    - Net income of EUR 358 million; gains from fair value items offset by other charges
    - Return on equity increases to 7.7%
</pre>    Sales growth driven by fee-businesses - strong gross deposits of EUR 25 billion  

<pre>
    - Gross deposits increase by 19% to EUR 25 billion mainly from US retirement plans
      and asset management. Net outflows of EUR 2.5 billion as a result of anticipated
      contract discontinuances in business acquired from Mercer
    - New life sales decline by 15% to EUR 219 million resulting from lower universal life
      sales and strict pricing policy
    - Accident & health and general insurance sales down by 5% to EUR 218 million, mainly
      due to product exits in US
    - Market consistent value of new business decreases to EUR 70 million due to lower
      interest rates and VA sales
</pre>    All capital metrics continue to be within target ranges 

<pre>
    - Solvency II ratio declined slightly during the third quarter to an estimated 156%
      as a result of adverse market impacts; immaterial impact on group ratio from
      assumption changes and model updates
    - Capital generation of EUR 0.3 billion excluding market impacts and one-time items of
      EUR (0.2) billion
    - Holding excess capital stable at EUR 1.1 billion as remittances from the units offset
      dividends to shareholders
    - Gross leverage ratio improves to 29.5% driven by retained earnings
</pre>    Statement of Alex Wynaendts, CEO 

    Throughout the third quarter, we further executed on our key strategic objectives by
successfully reducing our costs, maintaining our strong capital position and growing our
profitable fee-based businesses. At the same time, we continue to invest in new
technologies to support our increased interaction with customers, and in innovative
products to address their growing needs. 

    Aegon's Solvency II ratio remains strong and our management actions enabled us to
mitigate adverse market impacts. While our annual assumption changes and model updates had
a limited impact on earnings, there was no impact on our capital position or capital
generation going forward. Earnings from our US life insurance business continued to be
volatile as a result of higher than expected claims. 

    We are particularly pleased by gross deposits of EUR 25 billion during the quarter. In
the US, the integration of Mercer's defined contribution retirement plan administration
business is on track. We did experience outflows following the acquisition of this
business, as anticipated. 

    All-in-all, we are making continued progress to deliver on our strategic priorities
aimed at positioning Aegon to achieve growth and deliver value to all our stakeholders. 

    Strategic highlights

<pre>
    - Aegon to exit Ukrainian market by selling Aegon Life Ukraine to TAS Group 
    - Insurance consortium including Aegon launches the Blockchain Insurance Industry
      Initiative B3i 
    - Aegon maintains a leading position in the Dow Jones Sustainability Index 
    - Transamerica announces a new retirement plan partnership with Mercer 
</pre>    Aegon's ambition
Aegon's ambition is to be a trusted partner for financial solutions at every stage of life,
 and to be recognized by its customers, business partners and wider society as a company
that puts the interests of its customers first in everything it does. In addition, Aegon
wants to be regarded by its employees as an employer of choice, engaging and enabling them
to succeed. This ambition is supported by four strategic objectives embedded in all Aegon
businesses: Optimized portfolio, Operational excellence, Customer loyalty, and Empowered
employees.

    Optimized portfolio 

    On September 22, Aegon entered into an agreement to sell 100% of its shares of Aegon
Life Ukraine to TAS Group, and will exit the Ukrainian market. The deal is subject to
customary closing conditions, including regulatory approvals. The transaction is expected
to be completed by January 2017.

    With the aim to further capture growth opportunities in Brazil, Mongeral Aegon and
BANCOOB (Banco Cooperativo do Brasil) received regulatory approval in August 2016 to
establish a joint venture to provide life insurance and pension solutions within the
SICOOB System. SICOOB is the largest cooperative financial system in the country, with
almost 4 million associates and 2,200 points of service. BANCOOB is a private commercial
bank owned by the credit cooperative entities affiliated with the SICOOB system. The joint
venture represents a further expansion into bank distribution for Mongeral Aegon, which
already serves over 2.5 million customers nationwide through over 4,000 broker partners.

    Operational excellence 

    Aegon in conjunction with Allianz, Munich Re, Swiss Re and Zurich launched the
Blockchain Insurance Industry Initiative, B3i. The initiative aims to explore the
potential of distributed ledger technologies to better serve clients through faster, more
convenient and secure services. If Blockchain technology proves viable, it could
streamline paper work and reconciliations for (re-)insurance contracts and accelerate
information and money flows, while at the same time greatly improving auditability. The
initiative, which is open to other insurers and reinsurers, is a pilot project that aims
to achieve a proof-of-concept for inter-group retrocessions by the use of Blockchain
technology. The founding members aim to develop standards and processes for industry-wide
usage, and to facilitate the transition from individual company use cases to viable
solutions across the entire insurance value chain.

    Aegon maintained its leading position in the Dow Jones Sustainability Index, with a
score of 82 out of 100, compared with an industry average of 50. The index tracks the
performance of the leading large companies worldwide on a variety of categories including
governance, remuneration, compliance, environmental footprint and transparent reporting.
Aegon again proved itself to be one of the leading companies in its sector in terms of
sustainability, remaining in the top 10 percent of the financial services industry. Aegon
scored particularly well on its commitments to the Principles for Sustainable Insurance,
Risk management, and Tax Policies and Practices. Aegon's new Global Tax Policy and
Principles of Conduct contributed to an increase of 14 percentage points in the Tax
Strategy category.

    Customer loyalty 

    Transamerica announced a new partnership with Mercer on October 5 for Mercer's
employer clients. Mercer developed a solution for its employer clients that enables them
to transfer fiduciary responsibility. The company did, however, need a partner to sell its
new solution because Mercer sold its recordkeeping business to Transamerica in 2015. The
new arrangement ensures that every plan for which Transamerica assumes fiduciary
responsibility will have relatively the same design and pricing structure to minimize
customization.

    This innovative approach makes the products more efficient and learnings from this new
agreement can be applied to products Transamerica offers directly to employers itself. The
first plans are expected to convert on January 1, 2017.  

    On September 19, Transamerica launched the HigherEd Retirement Consortium[SM], a new
multiple employer retirement plan designed to help private colleges and universities merge
their employee retirement plans. The new solution assists employers by simplifying plan
administration, managing fiduciary responsibilities, taking advantage of expert plan
management, and receiving economies of scale in administrative and investment pricing. The
plan also offers an open architecture investment platform with no proprietary fund
requirements.

    Empowered employees 

    Aegon's global 'Future Fit' strategy is empowering Aegon employees to be fit for the
new digital, connected and data-driven world. Key areas of focus include enabling
employees through providing the infrastructure, tools and training needed to exceed
customers' expectations. Furthermore, initiatives such as the Digital Accelerator Program
in Aegon UK and Aegon Hungary, and the Global Aegon Analytical Academy, an annual
traineeship for employees to enhance data analytical capabilities across the company,
illustrate how digital capabilities and expertise are being improved across the company.

    Aegon's Digital Center of Excellence held its first ever Hackathon, a 24 hour pop-up
initiative that provided 36 Aegon employees from Europe and Asia an opportunity to work
together and collaborate on innovate new digital initiatives. The event enabled Aegon's
employees to think and act like they were working for a technology start-up company, by
allowing them to freely conceptualize, design and pitch prototypes of their ideas to
investors for funding. At the conclusion of the event, eight viable digital and
data-driven initiatives were identified for further development and potential
implementation within various business units.

<pre>
    Key performance indicators
                                                                           YTD     YTD
    EUR millions [11b],[ 11c] Notes  Q3 2016  Q2 2016   %  Q3 2015    %    2016   2015   %
    Underlying earnings
    before tax *                  1      461      435   6      495   (7)  1,359  1,432  (5)
    Net income / (loss)                  358     (385)  -     (551)   -     116     57  103

    Sales                         2    2,904    2,765   5    2,564   13   9,229  7,524   23
    Market consistent value
    of new business               3       70      100  (30)    125  (44)    302    448  (33)
    Return on equity              4     7.7%     6.8%   14     7.6%   2    7.2%    7.2%   1
</pre> 
* In Q3 2016 the results from actuarial assumption updates will be reported as
part of 'Other income/(charges)'.
Previously, these impacts were reflected in underlying earnings or fair value items.
The comparative numbers have been updated to reflect this change.

<pre>
    Financial overview
    EUR millions             Notes  Q3 2016 Q2 2016   %  Q3 2015    % YTD 2016 YTD 2015   %
    Underlying earnings
    before tax
    Americas                            307     270   14     339   (9)     860     986  (13)
    Europe                              151     160   (6)    137    11     481     417   15
    Asia                                  6       1    -      18  (65)       8      17  (55)
    Asset Management                     32      37  (12)     40  (19)     114     132  (14)
    Holding and other                   (35)    (33)  (7)    (38)   8     (105)   (122)  14
    Underlying earnings
    before tax                          461     435    6     495   (7)   1,359   1,432   (5)
    Fair value items                     84    (358)   -    (161)   -     (632)   (612)  (3)
    Realized gains / (losses)
    on investments                       21     229  (91)     36  (40)     305     288    6
    Net impairments                       6     (23)   -     (12)   -      (53)    (15)   -
    Other income / (charges)            (72)   (656)  89    (988)  93     (734)   (999)  27
    Run-off businesses                    8      18  (55)     35  (76)      55      68  (19)
    Income before tax                   510    (355)   -    (595)   -      300     161   87
    Income tax                         (152)    (30)   -      44    -     (183)   (103) (77)
    Net income / (loss)                 358    (385)   -    (551)   -      116      57  103
    Net income / (loss)
    attributable to:
    Equity holders of Aegon N.V.        358    (385)   -    (551)   -      116      57  105
    Net underlying earnings             349     312   12     387  (10)   1,012   1,100   (8)
    Commissions and expenses          1,638   1,589    3   1,540    6    4,971   5,072   (2)
    of which operating expenses  9      900     926   (3)    912   (1)   2,786   2,737    2

    New life sales
    Life single premiums                479     489   (2)    686  (30)   1,578   2,262  (30)
    Life recurring premiums
    annualized                          171     195  (12)    190  (10)     571     605   (6)
    Total recurring plus 1/10
    single                              219     244  (10)    259  (15)     729     832  (12)
    New life sales                10
    Americas                            127     138   (8)    148  (14)     409     447   (8)
    Europe                               64      75  (14)     69   (6)     224     238   (6)
    Asia                                 28      31   (9)     42  (33)      96     147  (34)
    Total recurring plus 1/10
    single                              219     244  (10)    259  (15)     729     832  (12)
    New premium production
    accident and health insurance       198     199    -     212   (6)     658     747  (12)
    New premium production general
    insurance                            20      27  (25)     18   14       71      59   20
    Gross deposits
    (on and off balance)            10
    Americas                          9,375   9,265    1   7,868   19   32,112   28,488  13
    Europe                            2,769   3,088  (10)  2,595    7    9,298    8,381  11
    Asia                                 83      94  (12)     52   60      250      345 (28)
    Asset Management                 12,442  10,506   18  10,240   22   36,040   21,643  67
    Total gross deposits             24,669  22,953    7  20,756   19   77,700   58,857  32
    Net deposits
    (on and off balance)           10
    Americas                         (3,711)    (56)   -     711    -    1,058    7,028 (85)
    Europe                              (41)    159    -    (190)  79      849      527  61
    Asia                                 69      80  (14)     40   72      208      303 (31)
    Asset Management                  1,380   1,046   32   3,505  (61)   4,666    6,574 (29)
    Total net deposits excluding
    run-off businesses               (2,303)  1,229    -   4,065    -    6,781   14,432 (53)
    Run-off businesses                 (237)   (103) (129)  (294)  20    (580)     (618)  6
    Total net deposits / (outflows)  (2,539)  1,125    -   3,771    -    6,201   13,814 (55)

</pre><pre>    Revenue-generating investments
                                                  Sep. 30,    Jun. 30,       Dec. 31,
                                                     2016        2016    %      2015    %
    Revenue-generating investments (total)        723,485     716,746    1   710,458    2
    Investments general account                   159,053     159,933   (1)  160,792   (1)
    Investments for account of policyholders      197,493     194,512    2   200,226   (1)
    Off balance sheet investments third parties   366,939     362,301    1   349,440    5
</pre>    Operational highlights

    Actuarial and economic assumption changes and model updates 

    Aegon reviews its actuarial and economic assumptions annually in the third quarter. In
addition, as part of an ongoing commitment to deliver operational excellence, the company
reviews and refines its models where necessary. These assumption changes and model updates
on balance accounted for charges of EUR 81 million in the third quarter of 2016. As of
this quarter, actuarial and economic assumption changes and model updates are all included
in other income / (charges). These items were previously reported across underlying
earnings, fair value items and other income / (charges). Presenting the impacts from
assumption changes and model updates in one place improves transparency of Aegon's
results. The comparative numbers have been updated to reflect this change.

    Underlying earnings before tax
Aegon's underlying earnings before tax in the third quarter of 2016 declined by 7%
compared with the third quarter of 2015 to EUR 461 million. Expense savings and favorable
market impacts were more than offset by adverse claims experience in the United States and
negative adjustments to intangible assets related to lower than anticipated reinvestment
yields. Adverse claims experience and lower than anticipated reinvestment yields in the
third quarter of 2016 amounted to EUR 13 million and EUR 23 million, respectively.

    Underlying earnings from the Americas declined to EUR 307 million. This was caused by
adverse mortality experience and the negative adjustment to intangible assets related to
lower than anticipated reinvestment yields, which more than offset the effects of
favorable morbidity experience, favorable equity markets, and reduced expenses. The latter
was driven by the benefit from management actions leading to expense savings.

    In Europe, underlying earnings increased to EUR 151 million. This increase was driven
by lower amortization of deferred policy acquisition costs (DPAC) in the United Kingdom
following the write down of DPAC related to upgrading customers to the retirement platform
in the fourth quarter of 2015.

    The result from Aegon's operations in Asia was down to EUR 6 million, as favorable
mortality was more than offset by the negative impact from lower than anticipated
investment yields.

    Underlying earnings from Aegon Asset Management declined to EUR 32 million, mainly as
a result of increased expenses due to continued investments in the growth strategy in
addition to lower management fees and unfavorable currency movements.

    The result from the holding improved to a loss of EUR 35 million, resulting from lower
funding costs after the redemption of a senior bond in December 2015.

    Net income 

    Net income amounted to EUR 358 million. Other charges as a result of assumption
changes and model updates were more than offset by gains from fair value items.

    Fair value items 

    The result from fair value items totaled EUR 84 million. This was mainly driven by
credit spread tightening and favorable investment returns in the United States and
positive real estate revaluations in the Netherlands.

    Realized gains on investments 

    Realized gains on investments decreased to EUR 21 million. Gains on the sale of assets
related to the divestment of the annuity book in the United Kingdom and normal trading
activity more than offset losses in the Americas.

    Impairment charges
Net recoveries of EUR 6 million for the quarter were the result of net recoveries in the
Americas which more than offset impairments on the consumer loan portfolio in the
Netherlands.

    Other charges
Other charges amounted to EUR 72 million as a result of the net impact of assumption
changes, model updates and other items. A charge of EUR 81 million has been recorded in
other charges in respect of assumption changes and model updates. The impact is mainly
attributable to Aegon's businesses in the US. Assumption changes and model updates in the
US from long-term care led to a net negative impact of EUR 100 million. These were the
result of experience updates including morbidity, termination rates and utilization
assumptions. For the other business lines in the US, assumption changes and model updates
largely offset each other. The main items were the refinement of modelling of crediting
rates on indexed universal life policies and management actions, which together offset
lower lapse assumptions on certain secondary guarantee universal life insurance blocks.
Furthermore, model updates in the guarantee provision resulted in a benefit of EUR 28
million in the Netherlands.

    Run-off businesses
Earnings from run-off businesses declined to EUR 8 million due to unfavorable mortality
experience in the payout annuities block and a lower result in the reinsurance line of
business.

    Income tax
Income tax amounted to EUR 152 million in the third quarter, which is in line with the
average nominal tax rate for the group. The effective tax rate on underlying earnings was
24%.

    Return on equity 

    Return on equity increased to 7.7% in the third quarter of 2016, as lower net
underlying earnings were more than offset by lower shareholders' equity as a result of
capital returned to shareholders and the write down of DPAC related to upgrading customers
to the UK retirement platform in the fourth quarter of 2015.

    Operating expenses 

    Operating expenses decreased by 1% compared with the third quarter of 2015 to EUR 900
million. Lower operating expenses in the Americas resulted from expense savings, and lower
sales-related and other variable operating expenses. This was partly offset by the
acquisition of Mercer's defined contribution business in the United States, expenses
related to the acquisitions of Cofunds and BlackRock's defined contribution business in
the United Kingdom, and higher Solvency II-related expenses and investments in new
business initiatives in the Netherlands.

    Sales  

    Aegon's total sales increased by 13% to EUR 2.9 billion in the third quarter of 2016.
This increase was the result of higher gross deposits, which were up 19% to EUR 24.7
billion. Retirement Plans deposits increased due to the inclusion of deposits in the
business acquired from Mercer, in addition to higher takeover and recurring deposits.
Asset Management deposits increased mainly due to higher recognized gross deposits in
Aegon's Chinese asset management joint venture in addition to higher inflows in the
Netherlands and in the Americas. Net outflows amounted to EUR 2.5 billion and were mainly
driven by net outflows on the business acquired from Mercer. The latter is in line with
the anticipated lapse behavior when acquiring a block of retirement business.

    New life sales declined by 15% to EUR 219 million, mainly driven by Aegon's adherence
to its strict pricing policy in the current low interest rate environment. In addition,
universal life sales were impacted by new sales force training programs, which led to a
decline in the recruitment of new agents. In the longer term these programs should have a
favorable impact on sales. New premium production for accident & health and general
insurance was down by 5% to EUR 218 million due to product exits in the United States.

    Market consistent value of new business 

    The market consistent value of new business declined to EUR 70 million. This was
mainly due to the negative impact from lower interest rates and lower variable annuity
sales following the product adjustments implemented last year.

    Revenue-generating investments 

    Revenue-generating investments were up 1% during the third quarter of 2016 to EUR 723
billion, as net outflows were more than offset by favorable market movements.

    Capital management
Shareholders' equity declined by EUR 0.8 billion compared with the end of the previous
quarter to EUR 21.1 billion on September 30, 2016, mainly as a result of lower revaluation
reserves. Aegon's shareholders' equity, excluding revaluation reserves and defined benefit
plan remeasurements, increased to EUR 16.3 billion - or EUR 7.84 per common share - at the
end of the third quarter. Net income for the quarter more than offset the payment of the
2016 interim dividend. The gross leverage ratio improved to 29.5% in the third quarter,
driven by retained earnings.

    Holding excess capital remained stable at EUR 1.1 billion as net remittances from the
units and a tax benefit offset dividends paid to shareholders and holding operating
expenses.

    Capital generation of the operating units excluding market impacts and one-time items
amounted to EUR 0.3 billion in the third quarter of 2016. Market impacts in the quarter
amounted to EUR (0.3) billion, mainly due to the effects of lower interest rates and
credit spreads on Aegon's own employee pension plan provisions in the United Kingdom and
the Netherlands, and a lower benefit from the volatility adjuster. One-time items amounted
to EUR 0.2 billion, which were driven by management actions in the Netherlands and
implementation of a XXX reserve financing solution with an external reinsurer. Assumption
changes and model updates had an immaterial impact on the capital generation, as the
benefits from assumption changes and model updates in the United States and updated
longevity assumptions in the United Kingdom were offset by the implementation of updated
longevity assumptions in the Netherlands. Capital generation including market impacts and
one-time items amounted to EUR 0.1 billion for the quarter.

    Aegon's Solvency II ratio decreased slightly to an estimated 156% in the third quarter
as adverse market impacts and the interim 2016 dividend more than offset management
actions and capital generation.

    Full version press release 

    Use this link
[http://www.aegon.com/en/Home/Investors/News-releases/2016/Earnings-Q3-2016 ] for the full
version of the press release.

    Additional information

    The Hague - November 10, 2016 

    Presentation 

    The conference call presentation is available on aegon.com
[http://www.aegon.com/results ] as of 7.30 a.m. CET.

    Supplements 

    Aegon's Q3 2016 Financial Supplement and Condensed Consolidated Interim Financial
Statements
are available on aegon.com [http://www.aegon.com/results ].

    Conference call including Q&A 

    9:00 a.m. CET

    Audio webcast on aegon.com [http://www.aegon.com/results ]

    Dial-in numbers 

    United States: +1 719 457 1036
United Kingdom: +44 203 043 2002
The Netherlands: +31 20 721 9251

    Passcode: 2727072

    Two hours after the conference call, a replay will be available on aegon.com
[http://www.aegon.com/results ].

    DISCLAIMERS 

    Cautionary note regarding non-IFRS measures 

    This document includes the following non-IFRS financial measures: underlying earnings
before tax, income tax, income before tax, market consistent value of new business and
return on equity. These non-IFRS measures are calculated by consolidating on a
proportionate basis Aegon's joint ventures and associated companies. The reconciliation of
these measures, except for market consistent value of new business, to the most comparable
IFRS measure is provided in note 3 'Segment information' of Aegon's Condensed Consolidated
Interim Financial Statements. Market consistent value of new business is not based on IFRS,
 which are used to report Aegon's primary financial statements and should not be viewed as
a substitute for IFRS financial measures. Aegon may define and calculate market consistent
value of new business differently than other companies. Return on equity is a ratio using
a non-IFRS measure and is calculated by dividing the net underlying earnings after cost of
leverage by the average shareholders' equity, the revaluation reserve and the reserves
related to defined benefit plans. Aegon believes that these non-IFRS measures, together
with the IFRS information, provide meaningful information about the underlying operating
results of Aegon's business including insight into the financial measures that senior
management uses in managing the business.

    Local currencies and constant currency exchange rates 

    This document contains certain information about Aegon's results, financial condition
and revenue generating investments presented in USD for the Americas and Asia, and in 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 Aegon presented in EUR, which
is the currency of Aegon's primary financial statements.

    Forward-looking statements 

    The statements contained in this document that are not historical facts are
forward-looking statements as defined in the US Private Securities Litigation Reform Act
of 1995. The following are words that identify such forward-looking statements: aim,
believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on,
plan, continue, want, forecast, goal, should, would, is confident, will, and similar
expressions as they relate to Aegon. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are difficult to
predict. Aegon undertakes no obligation to publicly update or revise any forward-looking
statements. Readers are cautioned not to place undue reliance on these forward-looking
statements, which merely reflect company expectations at the time of writing. Actual
results may differ materially from expectations conveyed in forward-looking statements due
to changes caused by various risks and uncertainties. Such risks and uncertainties include
but are not limited to the following:

<pre>
    - Changes in general economic conditions, particularly in the United States, the
      Netherlands and the United Kingdom;
    - Changes in the performance of financial markets, including emerging markets, such as
      with regard to:
    - The frequency and severity of defaults by issuers in Aegon's fixed income investment
      portfolios;
    - The effects of corporate bankruptcies and/or accounting restatements on the financial
      markets and the resulting decline in the value of equity and debt securities Aegon
      holds; and
    - The effects of declining creditworthiness of certain private sector securities and the
      resulting decline in the value of sovereign exposure that Aegon holds;
    - Changes in the performance of Aegon's investment portfolio and decline in ratings of
      Aegon's counterparties;
    - Consequences of a potential (partial) break-up of the euro;
    - Consequences of the anticipated exit of the United Kingdom from the European Union;
    - The frequency and severity of insured loss events;
    - Changes affecting longevity, mortality, morbidity, persistence and other factors that
      may impact the profitability of Aegon's insurance products;
    - Reinsurers to whom Aegon has ceded significant underwriting risks may fail to meet
      their obligations;
    - Changes affecting interest rate levels and continuing low or rapidly changing interest
      rate levels;
    - Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP
      exchange rates;
    - Changes in the availability of, and costs associated with, liquidity sources such as
      bank and capital markets funding, as well as conditions in the credit markets in
      general such as changes in borrower and counterparty creditworthiness;
    - Increasing levels of competition in the United States, the Netherlands, the United
      Kingdom and emerging markets;
    - Changes in laws and regulations, particularly those affecting Aegon's operations'
      ability to hire and retain key personnel, taxation of Aegon companies, the products
      Aegon sells, and the attractiveness of certain products to its consumers;
    - Regulatory changes relating to the pensions, investment, and insurance industries in
      the jurisdictions in which Aegon operates;
    - Standard setting initiatives of supranational standard setting bodies such as the
      Financial Stability Board and the International Association of Insurance Supervisors
      or changes to such standards that may have an impact on regional (such as EU),
      national or US federal or state level financial regulation or the application thereof
      to Aegon, including the designation of Aegon by the Financial Stability Board as a
      Global Systemically Important Insurer (G-SII).
    - Changes in customer behavior and public opinion in general related to, among other
      things, the type of products Aegon sells, including legal, regulatory or commercial
      necessity to meet changing customer expectations;
    - Acts of God, acts of terrorism, acts of war and pandemics;
    - Changes in the policies of central banks and/or governments;
    - Lowering of one or more of Aegon's debt ratings issued by recognized rating
      organizations and the adverse impact such action may have on Aegon's ability to raise
      capital and on its liquidity and financial condition;
    - Lowering of one or more of insurer financial strength ratings of Aegon's insurance
      subsidiaries and the adverse impact such action may have on the premium writings,
      policy retention, profitability and liquidity of its insurance subsidiaries;
    - The effect of the European Union's Solvency II requirements and other regulations in
      other jurisdictions affecting the capital Aegon is required to maintain;
    - Litigation or regulatory action that could require Aegon to pay significant damages or
      change the way Aegon does business;
    - As Aegon's operations support complex transactions and are highly dependent on the
      proper functioning of information technology, a computer system failure or security
      breach may disrupt Aegon's business, damage its reputation and adversely affect its
      results of operations, financial condition and cash flows;
    - Customer responsiveness to both new products and distribution channels;
    - Competitive, legal, regulatory, or tax changes that affect profitability, the
      distribution cost of or demand for Aegon's products;
    - Changes in accounting regulations and policies or a change by Aegon in applying such
      regulations and policies, voluntarily or otherwise, which may affect Aegon's reported
      results and shareholders' equity;
    - Aegon's projected results are highly sensitive to complex mathematical models of
      financial markets, mortality, longevity, and other dynamic systems subject to shocks
      and unpredictable volatility.  Should assumptions to these models later prove
      incorrect, or should errors in those models escape the controls in place to detect
      them, future performance will vary from projected results;
    - The impact of acquisitions and divestitures, restructurings, product withdrawals and
      other unusual items, including Aegon's ability to integrate acquisitions and to obtain
      the anticipated results and synergies from acquisitions;
    - Catastrophic events, either manmade or by nature, could result in material losses and
      significantly interrupt Aegon's business; and
    - Aegon's failure to achieve anticipated levels of earnings or operational efficiencies
      as well as other cost saving and excess capital and leverage ratio management
      initiatives.
    - This press release contains information that qualifies, or may qualify, as inside
      information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
</pre>    Further details of potential risks and uncertainties affecting Aegon are described in
its filings with the Netherlands Authority for the Financial Markets and the US Securities
and Exchange Commission, including the Annual Report. These forward-looking statements
speak only as of the date of this document. Except as required by any applicable law or
regulation, Aegon expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements contained herein to reflect any
change in Aegon's expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.

<pre>
     
    Media relations 
    Debora de Laaf 
    +31(0)70-344-8730 
    [email protected]

     
    Investor relations 
    Willem van den Berg 
    +31(0)70-344-8305 
    [email protected]

     
</pre>     


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