Aegon Grows Earnings and Sales in Q4; Proposes
Increased Final Dividend
<pre>
- Higher underlying earnings driven by growth, lower expenses and favorable
markets
- Underlying earnings increase 29% to EUR 447 million as a result of business
growth, successful delivery on cost reduction programs, the non-recurrence of
exceptional charges in the UK and favorable equity markets and currency movements
- Strong increase in net income to EUR 422 million driven by higher underlying
earnings, realized gains on investments, lower impairments and book gains on
divestments
- Return on equity increases to 7.2%, and 8.0% excluding run-off businesses
</pre><pre>
- Consecutive sales growth
- New life sales increase 36% to EUR 677 million; particularly strong sales in
the UK, NL and US
- Accident & health and general insurance sales increase 5% to EUR 212 million
- Deposits of EUR 9.2 billion; 30% increase reflects continued strong pension,
variable annuity and asset management deposits
- Market consistent value of new business increases strongly to EUR 204 million
as a result of product repricing, improved margins and higher sales
</pre><pre>
- Strong capital position and cash flows
- Capital base ratio of 76.7%, well-above target of at least 75% by year-end
2012
- IGDa) solvency ratio increases to 230%
- Operational free cash flow of EUR 530 million
- Final dividend of EUR 0.11 per common share
</pre> Statement of Alex Wynaendts, CEO
Our solid fourth quarter performance, both in terms of sales and earnings, is a result
of the steps we have taken to transform our business. We continue to experience strong
customer demand for our core products and services in each of our markets, reflecting the
strength of our franchise. Furthermore, our disciplined approach to pricing demonstrates
our commitment to selling products that provide value for both our customers and Aegon in
the continuing low interest rate environment.
During the quarter, we expanded further our distribution network in the United States
and have secured an important new bank partnership in Spain. In addition, we have
reinforced our position in Central & Eastern Europe by increasing our scale in Romania and
entering Ukraine.
We are also pleased with the balanced agreement we have reached with our largest
shareholder, Vereniging Aegon, to cancel all preferred shares. Following shareholder
approval, this transaction will simplify Aegon's capital structure and enable us to
maintain a high quality capital base under new European solvency requirements, and in a
way that minimizes the impact on common shareholders.
We have made clear progress in positioning our businesses to compete successfully in
the new environment. Moreover, our continued strong capital position and cash flows
support our proposal to increase our final dividend to EUR 0.11 per share.
Key performance indicators
<pre>
amounts in EUR
millions b) Notes Q4 2012 Q3 2012 % Q4 2011 % FY 2012 FY 2011 %
Underlying
earnings before
tax 1 447 472 (5) 346 29 1,787 1,522 17
Net income 2 422 374 13 81 - 1,571 872 80
Sales 3 1,813 1,550 17 1,409 29 6,725 5,701 18
Market consistent
value of new
business 4 204 173 18 71 187 619 422 47
Return on equity 5 7.2% 7.7% (6) 5.2% 38 7.1% 6.7% 6
</pre> STRATEGIC HIGHLIGHTS
<pre>
- Aegon forms strategic partnership with Banco Santander in Spain; ends JV
with Unnim
- Position in Central & Eastern Europe strengthened with acquisitions in Romania
and Ukraine
</pre> Aegon's ambition
At Aegon's latest analyst & investor conference in December 2012, management highlighted
the progress underway in delivering on its strategic priorities and detailed actions
underway in Aegon's largest market, the United States, to capture opportunities while
delivering sustainable, profitable growth, consistent with Aegon's strict risk-return
requirements. Aegon's operations in the United States - which now all operate under the
Transamerica brand - are pursuing growth by focusing on the core markets of life and
supplemental health insurance, pensions and at-retirement solutions through product
innovation, expanding distribution and differentiated customer service.
Aegon's aim to be a leader in all of its chosen markets by 2015 is supported by four
strategic objectives: Optimize portfolio, Enhance customer loyalty, Deliver operational
excellence and Empower employees. These key objectives have been embedded in all Aegon
businesses. They provide the strategic framework for the company's ambition to become the
most-recommended life insurance and pension provider by customers and business partners,
as well as the most-preferred employer in the sector.
Continued economic uncertainty has increased the opportunities for Aegon in pursuing
its clear purpose of helping people take responsibility for their financial future. To
capture these opportunities, Aegon will accelerate the development of new business models
by investing in innovative, technology-driven distribution channels, to connect better and
more frequently with customers, improve service levels and increase retention rates.
Aegon's accelerated investments in technology will also better support intermediaries to
adapt to the changing distribution environment.
In recent years, Aegon has implemented a broad restructuring program to sharpen its
focus on its core lines of business, significantly reduce its overall cost base, and
create greater efficiencies across the organization. A further demonstration of Aegon's
more disciplined focus has been a better balance between spread-based and fee-generating
business, a substantially improved risk-return profile and an improved capital base ratio.
Optimize portfolio
Aegon has reached an agreement to exit its life, health and pension joint venture with
Unnim Banc and sell its 50% stake to Unnim for a total consideration of EUR 353 million.
The sale is expected to result in a book gain of approximately EUR 105 million before tax.
It is anticipated that the transaction will close during the second quarter of 2013.
Aegon's share in underlying earnings before tax of the joint venture totaled EUR 20
million in 2012.
This anticipated divestment by Aegon is a consequence of the consolidation underway
within the Spanish banking sector. However, Aegon maintains a long-term commitment to
Spain and has recently reinforced its market position with an exclusive 25-year strategic
partnership with Banco Santander, Spain's largest financial group, to distribute life and
general insurance products through its extensive network of over 4,600 bank branches. The
long-term alliance provides access to a potential client base of 12 million individuals
across the country. Under the terms of the agreement, Aegon will acquire a 51% stake in
both a life insurance company as well as in a non-life insurance company for a
consideration of EUR 220 million. Depending on the performance of the partnership, Aegon
may pay an additional amount after five years. Furthermore, Aegon Spain will provide the
back-office services to the joint venture companies.
In Central & Eastern Europe, Aegon recently announced two transactions to further
strengthen its position in this developing region. In December 2012, Aegon acquired Fidem
Life, the fifth largest life insurance company in Ukraine. The transaction was closed on
February 8, 2013. Last month, Aegon announced to take over Eureko's life insurance and
pension business in Romania and to integrate it within Aegon's existing operations.
Following the transaction, Aegon will become the country's third largest pension provider
and a top ten provider of life insurance products. The transaction is expected to close in
the second half of 2013, pending regulatory approval. Aegon has been active in Central &
Eastern Europe since 1992 and now has operations in Hungary, Poland, the Czech Republic,
Slovakia, Romania, Turkey and Ukraine.
Deliver operational excellence
Aegon has made a strong commitment to improving its performance as measured by factors
other than purely financial. Consequently, Aegon has achieved "silver class" status in
RobecoSAM's Sustainability Yearbook. Aegon's silver-class listing is based on its score in
the RobecoSAM's annual Corporate Sustainability Assessment, part of the Dow Jones' 2012
Sustainability Index (DJSI). Companies within the silver class must score within a range
of 1-5 percent from the score of the sector's sustainability leader. Aegon showed
significant improvement in performance, keeping its presence in the DJSI World Index and
has again been included in the more strenuous DJSI Europe Index. The ranking can be
attributed mainly to strong gains in brand management, environmental risk detection,
financial inclusion, human capital development, and talent attraction and retention.
Aegon continues to make substantial progress in improving efficiency. In the
Netherlands, Aegon is on track to reduce operating expenses by EUR 100 million, compared
to the cost base for 2010. The cost savings aim to offset pressure on underlying earnings.
Up to and including the fourth quarter, Aegon has implemented costs savings of EUR 89
million.
Enhance customer loyalty
A key element of Aegon's strategy is to get closer to its end-customers by an increased
utilization of technology and investment in innovative capabilities to address customer
needs at every stage of the life cycle. At the heart of this approach is Aegon's
determination to shorten the distance between the company and its customers, provide the
possibility of interaction with greater ease and regularity, and better utilize the
knowledge about customers and their potential needs which the company possesses. Pursuing
innovation and employing technology to a much greater degree are essential to Aegon's
ability to enhance customer loyalty. Aegon further seeks to provide greater clarity and
understanding about the products and services it provides, while working to create a
distinctive customer experience through enhanced service. Increasingly, individuals are
exploring financial services and insurance-related products online and possess greater
knowledge about how certain products and services will address their needs. Aegon has
recently launched online sites to enable customers to actually purchase products via the
internet - or be referred to advisors - in the United States and China. Aegon is also
leveraging digital technology in Turkey to enable intermediaries to have high-quality
customer conversations, and in Hungary, its recently launched mobile application was
designated for a top industry award.
Putting the customer first is central to Aegon's refreshed strategy and longer-term
ambitions. Management within all business units are fully aligned and incentivized to
create the culture within Aegon that fully demonstrates this shared focus, and to measure
customer satisfaction on a consistent basis.
Following 'The Changing Face of Retirement' survey, which studied retirement readiness
across Europe and the United States, Aegon has recently released a supplemental report on
aging trends within Japan. The Japanese have traditionally been recognized for their high
savings rates, however this trend has changed since the mid-1990s. Aegon's study has
revealed that the decline in Japan's saving rates has been so stark that household savings
behavior now lags behind other countries surveyed. Although individuals do acknowledge the
importance of planning for retirement, only 2% feel they are saving enough. Aegon, with
its partner Sony Life, provides annuity products in Japan to serve the increasing need for
retirement solutions. During 2012, Aegon Sony Life substantially increased its sales as it
expanded its distribution reach by adding new bank partners and further leveraged on Sony
Life's network of over 4,000 professional agents.
Financial overview c)
<pre>
Q4 Q3
EUR millions Notes 2012 2012 % Q4 2011 % FY 2012 FY 2011 %
Underlying
earnings before
tax
Americas 342 344 (1) 316 8 1,317 1,273 3
The Netherlands 83 82 1 75 11 315 298 6
United Kingdom 25 26 (4) (26) - 105 5 -
New markets 52 70 (26) 65 (20) 274 249 10
Holding and
other (55) (50) (10) (84) 35 (224) (303) 26
Underlying
earnings before
tax 447 472 (5) 346 29 1,787 1,522 17
Fair value
items (79) (126) 37 (20) - 52 (416) -
Realized gains
/ (losses) on
investments 149 128 16 49 - 407 446 (9)
Impairment
charges (58) (35) (66) (94) 38 (176) (388) 55
Other income /
(charges) 106 3 - (194) - (162) (267) 39
Run-off
businesses (14) 12 - 1 - 2 28 (93)
Income before
tax 551 454 21 88 - 1,910 925 ##
Income tax (129) (80) (61) (7) - (339) (53) -
Net income 422 374 13 81 - 1,571 872 80
Net income /
(loss)
attributable
to:
Equity holders
of Aegon N.V. 422 373 13 79 - 1,570 869 81
Non-controlling
interests - 1 - 2 - 1 3 (67)
Net underlying
earnings 348 369 (6) 253 38 1,382 1,233 12
Commissions and
expenses 1,478 1,382 7 1,684 (12) 5,829 6,272 (7)
of which
operating
expenses 11 848 798 6 872 (3) 3,241 3,442 (6)
New life sales
Life single
premiums 2,058 1,125 83 1,876 10 5,411 5,864 (8)
Life recurring
premiums
annualized 471 293 61 311 51 1,414 1,249 13
Total recurring
plus 1/10
single 677 405 67 498 36 1,955 1,835 7
New life sales
Americas 12 148 126 17 109 36 520 418 24
The Netherlands 166 25 - 117 42 246 254 (3)
United Kingdom 306 206 49 189 62 936 852 10
New markets 12 57 48 19 83 (31) 253 311 (19)
Total recurring
plus 1/10
single 677 405 67 498 36 1,955 1,835 7
New premium
production
accident and
health
insurance 196 190 3 188 4 768 645 19
New premium
production
general
insurance 16 12 33 13 23 55 52 6
Gross deposits
(on and off
balance)
Americas 12 6,615 6,391 4 5,009 32 27,042 23,028 17
The Netherlands 282 275 3 560 (50) 1,484 2,048 (28)
United Kingdom 15 5 200 9 67 37 56 (34)
New markets 12 2,334 2,755 (15) 1,522 53 10,909 6,556 66
Total gross
deposits 9,246 9,426 (2) 7,100 30 39,472 31,688 25
Net deposits
(on and off
balance)
Americas 12 788 904 (13) (886) - 3,491 2,147 63
The Netherlands (248) (480) 48 (160) (55) (979) (334) (193)
United Kingdom 5 (6) - 1 - (3) 18 -
New markets 12 446 1,208 (63) 108 - 3,637 (2,596) -
Total net
deposits
excluding
run-off
businesses 991 1,626 (39) (937) - 6,146 (765) -
Run-off
businesses (601) (301) (100) (611) 2 (2,541) (3,139) 19
Total net
deposits 390 1,325 (71) (1,548) - 3,605 (3,904) -
</pre><pre>
Revenue-generating
investments
Dec. 31, Sept. 30,
2012 2012 %
Revenue-generating
investments (total) 457,856 463,041 (1)
Investments general account 146,234 147,955 (1)
Investments for account of
policyholders 153,670 156,831 (2)
Off balance sheet
investments third parties 157,952 158,255 -
</pre> OPERATIONAL HIGHLIGHTS
Underlying earnings before tax
Aegon's underlying earnings before tax increased 29% to EUR 447 million in the fourth
quarter of 2012. This is the result of business growth, a strong delivery on cost
reduction programs, the non-recurrence of exceptional charges in the United Kingdom and
favorable equity markets and currency movements.
Underlying earnings from the Americas rose to EUR 342 million. The 8% increase
compared to the fourth quarter of 2011 is mainly due to growth of the business and
favorable currency exchange rates.
In the Netherlands, underlying earnings increased 11% to EUR 83 million as higher
earnings in Life & Savings more than offset lower earnings in Pensions and Non-life.
In the United Kingdom, underlying earnings increased to EUR 25 million. This strong
improvement in earnings compared to the same period last year was driven by the
non-recurrence of exceptional charges and the successful implementation of the cost
reduction program. Earnings were negatively impacted by adverse persistency following the
implementation of the Retail Distribution Review and investments in new propositions in
the pension business. It is expected that the effects of adverse persistency will continue
in the first half of 2013.
Underlying earnings from New Markets decreased 20% to EUR 52 million. Higher earnings
of Aegon Asset Management as a result of strong growth were more than offset by lower
underlying earnings from Asia and Spain. Results in Spain were impacted by the divestment
of the joint venture with Banca Civica and results from Aegon's partnership with CAM are
no longer included pending the exit from this joint venture.
Total holding costs decreased 35% to EUR 55 million. This is mainly the result of
Aegon's Corporate Center expenses being charged, in part, to operating units as of the
first quarter of 2012. These charges reflect the services and support provided to
operating units by the Corporate Center and amounted to amounted to EUR 16 million in the
fourth quarter of 2012. In addition, lower operating expenses also contributed to the
decrease.
Net income
Net income increased to EUR 422 million driven by higher underlying earnings, realized
gains on investments and book gains on divestments, and lower impairments. These were only
partly offset by lower results on fair value items and higher tax charges.
Fair value items
The results from fair value items amounted to a loss of EUR 79 million. The loss was
mainly driven by the holding company, which included the impact of lower credit spreads on
the valuation of Aegon bonds and the negative effect on the fair value of swaps, as a
result of unfavorable interest rates movements.
Realized gains on investments
In the fourth quarter, realized gains on investments amounted to EUR 149 million and were
the combined effect of trading as a result of asset liability management and normal
activity in the investment portfolio in a low interest rate environment.
Impairment charges
Impairments improved significantly compared to last year and amounted to EUR 58 million.
In the Americas, impairments were primarily linked to one large mortgage loan in the
United States, while in New Markets impairments were largely related to mortgage loans in
Hungary.
Other income
Other income amounted to EUR 106 million. Book gains on both the sale of Aegon's minority
stake in Prisma Capital Partners (EUR 100 million) and the divestment of its 50% stake in
a joint venture with Banca Civica (EUR 35 million) were partly offset by a BOLI wrap
charge in the United States (EUR 26 million).
Run-off businesses
The results of run-off businesses amounted to a loss of EUR 14 million, which was
primarily due to the reinsurance business. Aegon divested its life reinsurance business
during 2011 through a reinsurance transaction and carries an intangible asset as a result.
Increased transfers of clients from Aegon to Scor resulted in an acceleration of the
amortization of the intangible asset during the quarter (EUR 18 million).
Income tax
Income tax amounted to EUR 129 million in the fourth quarter, translating into an
effective tax rate of 23%. The main drivers of the lower than nominal tax rate were tax
exempt income in the Americas and the Netherlands, tax credits in the Americas and Central
& Eastern Europe and the benefit of a future tax rate decrease in the United Kingdom.
Return on equity
The increase in return on equity to 7.2% for the fourth quarter of 2012, was driven by the
positive effect of growth in net underlying earnings partly offset by higher shareholders'
equity excluding revaluation reserves. Return on equity for Aegon's ongoing businesses,
excluding the run-off businesses, amounted to 8.0% over the same period.
Operating expenses
In the fourth quarter, operating expenses decreased 3% to EUR 848 million mainly as a
result of significant cost savings in the United Kingdom. On a comparable basis, total
operating expenses also decreased 3% compared with the fourth quarter of 2011.
Sales
Aegon's total sales increased substantially to EUR 1.8 billion. New life sales grew
strongly in many markets, most notably in the Netherlands and the United Kingdom where
higher pension production was driven by a strong market proposition and the introduction
of the Retail Distribution Review respectively. In the Americas, the main drivers behind
the increase were continued successful sales of indexed universal life products and the
discontinuance of certain unprofitable universal life products which resulted in higher
activity. Gross deposits remained strong for the variable annuity, retail mutual fund,
retirement plan and asset management businesses.
Market consistent value of new business
The market consistent value of new business increased to EUR 204 million as a result of a
combination of higher volumes, product repricing in the United States, a higher
contribution from mortgage and pension production in the Netherlands and improved margins
in Central & Eastern Europe and Asia.
Revenue-generating investments
Revenue-generating investments declined 1% compared to the third quarter-end of 2012 to
EUR 458 billion at December 31, 2012 as net inflows were more than offset by the effect of
adverse currency movements.
Capital management
Aegon's core capital excluding revaluation reserves amounted to EUR 18.6 billion,
equivalent to 76.7%6 of the company's total capital base at December 31, 2012. This is
well-above the company's capital base ratio target of at least 75% by the end of 2012 as
agreed with the European Commission.
Shareholders' equity increased to EUR 24.7 billion, mainly as a result of fourth
quarters' net income. The revaluation reserves increased slightly during the fourth
quarter to EUR 6.1 billion, mainly a reflection of lower credit spreads partly offset by
slightly higher interest rates. Shareholders' equity per common share, excluding
preference capital and revaluation reserves, amounted to EUR 8.47 at December 31, 2012.
In the fourth quarter, excess capital in the holding increased to EUR 2.0 billion as
dividends received from business units were partly offset by interest payments and
operational expenses. During 2012, Aegon aimed to maintain excess capital at the holding
of at least EUR 750 million.
At December 31, 2012, Aegon's Insurance Group Directive (IGD) ratio amounted to 230%,
an increase from the level of 222% at the end of the third quarter. Measured on a local
solvency basis, the Risk Based Capital (RBC) ratio in the United States increased to
~495%. This was mainly the result of strong net income in the quarter partly offset by
dividends paid to the holding company. The IGD ratio in the Netherlands remained stable at
~250%, while the Pillar I ratio in the United Kingdom increased to ~140% at the end of the
fourth quarter of 2012.
Cash flows
Operational free cash flows amounted to EUR 530 million. Excluding negative market impacts
of EUR 89 million, the operational free cash flows amounted to EUR 619 million. Market
impacts related mainly to interest rate movements. Operational free cash flows excluding
market impacts were particularly strong during the quarter, primarily the effect of
reserve releases and proceeds from divestments. Operational free cash flows represent the
distributable earnings generated by the business units.
Final dividend 2012
At the Annual General Meeting of Shareholders on May 15, 2013, the Supervisory Board
will, absent unforeseen circumstances, propose a final dividend for 2012 of EUR 0.11 per
common share. The final dividend will be paid in cash or stocks at the election of the
shareholder. The value of the stock dividend will be approximately equal to the cash
dividend.
If the proposed dividend is approved by shareholders, Aegon shares will be quoted
ex-dividend on May 17, 2013. The record date for the dividend will be May 21, 2013. The
election period will run from May 23 up to and including June 7, 2013. The stock fraction
for the stock dividend will be based on the average price for the Aegon share on the
Euronext Amsterdam stock exchange for the five trading days from June 3 through June 7,
2013. The dividend will be payable as of June 14, 2013.
Annual General Meeting of Shareholders
The record date for attending and voting at the Annual General Meeting of Shareholders
of Aegon N.V. is April 17, 2013. The agenda for this meeting will be published on April 3,
2013.
<pre>
ADDITIONAL INFORMATION
The Hague, February 15, 2013
Media conference call
7:45 a.m. CET
Podcast available after the call on aegon.com [http://www.aegon.com ]
Analyst & investor conference call
9:00 a.m. CET
Audio webcast on aegon.com [http://www.aegon.com ]
Dial-in numbers
United States: +1 480 629 9673
United Kingdom: +44 207 153 2027
The Netherlands: +31 45 631 6902
Two hours after the conference call, a replay will be available on aegon.com
[http://www.aegon.com ].
</pre> Presentations
Presentations will be available on aegon.com [http://www.aegon.com ] at 7:35 a.m. CET
Supplements
Aegon's Q4 2012 Financial Supplement and Condensed Consolidated Interim Financial
Statements are available on aegon.com [http://www.aegon.com ].
Use this link for the full version of the press release:
http://www.aegon.com/en/Home/Media/Press-Releases/20131/2013/Aegon-grows-earnings-and-sales-in-Q4-proposes-increased-final-dividend
DISCLAIMERS
Cautionary note regarding non-GAAP measures
This document includes certain non-GAAP financial measures: underlying earnings before
tax and market consistent value of new business. The reconciliation of underlying earnings
before tax 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. Aegon believes that these non-GAAP measures, together with the IFRS
information, provide meaningful supplemental information that Aegon's management uses to
run its business as well as useful information for the investment community to evaluate
Aegon's business relative to the businesses of its peers.
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 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;
- The frequency and severity of insured loss events;
- Changes affecting 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, the products Aegon sells, and
the attractiveness of certain products to its consumers;
- Regulatory changes relating to the insurance industry in the jurisdictions in
which Aegon operates;
- Changes in customer behavior and public opinion in general related to, among
other things, the type of products also 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 may affect Aegon's reported
results and shareholders' equity;
- 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 initiatives.
</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.
About Aegon
As an international insurance, pensions and asset management company based in The Hague,
Aegon has businesses in over twenty markets in the Americas, Europe and Asia. Aegon
companies employ approximately 24,000 people and have millions of customers across the
globe. Further information: aegon.com.
<pre>
Media relations
Greg Tucker
+31-(0)70-344-8956
[email protected]
Investor relations
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