Aegon Reports Third Quarter 2015 Results
<pre>
- Underlying earnings impacted by changes to actuarial assumptions
- Underlying earnings amount to EUR 436 million, impacted by actuarial assumption
changes
- Other charges of EUR 950 million driven by book loss on sale of Canadian activities
and model updates
- Net loss of EUR 524 million
- Return on equity of 6.8%, or 8.1% excluding assumption changes
</pre><pre>
- Fee-based deposit businesses continue sales growth
- Sustained deposit growth in US retirement plan, asset management and Dutch retail
savings;
27% increase in gross deposits to EUR 19.4 billion and 20% higher net deposits of EUR
4.3 billion
- New life insurance sales amount to EUR 435 million mainly due to lower pension sales
in NL and UK
- Accident & health and general insurance sales amount to EUR 230 million
- Market consistent value of new business of EUR 125 million impacted by low interest
rates
</pre><pre>
- Solid capital position and cash flows
- Operational free cash flows excluding market impacts and one-time items of EUR 350
million
- Holding excess capital increases to EUR 1.8 billion; gross leverage ratio of 28.8%
- Solvency I ratio increases to 225% as a result of divestments and one-time adjustments
</pre> Statement of Alex Wynaendts, CEO
"During the third quarter of the year, Aegon's earnings were impacted by assumption
changes, our ongoing model refinement program, and the anticipated book loss on the sale
of our low-return business in Canada. At the same time, sales for the quarter remained
strong, particularly in our fast-growing US retirement plan and asset management
businesses.
"We are pleased to have strengthened our position in one of our key growth areas,
becoming a top ten provider in the US retirement sector through the acquisition of
Mercer's defined contribution record-keeping business. This strategic development
demonstrates our determination to grow and diversify our customer base and expand our
offering of attractive fee-based retirement solutions.
"The progress we have recently made in preparing for Solvency II gives us confidence
that we are well-positioned to operate successfully in this new regulatory framework. We
remain committed to delivering value to customers and shareholders alike, and look forward
to sharing our plans in this respect at our upcoming Analyst & Investor Conference in
January."
<pre>
Key performance indicators
YTD YTD
amounts in
EUR millions b) Notes Q3 2015 Q2 2015 % Q3 2014 % 2015 2014 %
Underlying earnings
before tax 1 436 549 (21) 291 * 1,453 1,303 *
Net income / (loss) (524) 350 - 52 - 142 787 (82)
Sales 2 2,604 2,442 7 2,333 12 7,796 6,485 20
Market consistent
value of new business 3 125 183 (31) 192 (35) 448 636 (30)
Return on equity 4 6.8% 8.2% (18) 4.9% * 7.3% 7.3% *
</pre> STRATEGIC HIGHLIGHTS
<pre>
- Acquisition of Mercer's US defined contribution record-keeping business
- Highest-ever score obtained in the Dow Jones Sustainability Indices
- UK launches new Retiready Stability fund
- Aegon number one insurer in 2015 Best Employer's list in the Netherlands
</pre> Aegon's ambition
Aegon's aim to be a leader in all of its chosen markets is supported by four strategic
objectives embedded in all Aegon businesses: Optimize portfolio, Deliver operational
excellence, Enhance customer loyalty, and Empower employees. These 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.
Optimize portfolio
On September 25, Aegon announced the acquisition of Mercer's US defined contribution
record-keeping business. Mercer is widely recognized for its best-in-class solutions in
the large corporate benefits administration market. The transaction complements
Transamerica's current service offering, which has experienced success and growth in the
large markets with a primary focus on the not-for-profit segment. The number of retirement
plan participants serviced by Transamerica will increase by 917,000 to approximately 5
million, and assets under administration will increase by USD 71 billion to approximately
USD 216 billion[1]. In addition, Transamerica will also become the preferred defined
contribution record-keeping provider for Mercer's total benefit outsourcing and total
retirement outsourcing clients. The transaction is anticipated to be closed in the fourth
quarter of 2015.
On September 2, Aegon completed the sale of Clark Consulting Group - its Bank-Owned
Life Insurance (BOLI) distribution and servicing unit in the United States - to
Greenspoint Capital and the Newport Group, following regulatory approval. The agreement to
sell Clark Consulting for USD 177.5 million (EUR 160 million) was announced on July 10,
2015. Clark Consulting was a distinct entity within the BOLI/COLI insurance business that
is currently in run-off.
On November 3, an agreement was reached to sell certain assets of Transamerica
Financial Advisors, Inc. to Signator, a John Hancock affiliate. Transamerica Financial
Advisors is a full-service, independent broker-dealer and registered investment advisor
with around 1,100 advisors and 90 employees. John Hancock is an independent broker-dealer
and unit of Manulife Financial Corporation. It is anticipated that the transaction will
close in the second quarter of 2016, subject to regulatory approvals. Terms of the
transaction were not disclosed.
Deliver operational excellence
Aegon received its highest-ever score in the Dow Jones Sustainability Indices,
underlining the progress made in becoming a more sustainable company. Aegon scored 83
points in the 2015 Indices, compared with an average of 48 for the insurance industry as a
whole. In addition to being Aegon's highest-ever score, the company also outperformed 94%
of its peers in the sector.
In the UK, Aegon enhanced its digital life insurance solution, Simply Life, making it
even more accessible and attractive to a wider number of clients. The process, which
already has a very high immediate acceptance rate of over 80%, will introduce manual
underwriting if an online decision is unavailable. Simply Life is a life only protection
product that covers up to GBP 500,000 for customers aged between 18 and 49 with healthy
lifestyles. Simply Life offers both customers and advisors a quick and easy-to-use product
to meet protection needs.
Enhance customer loyalty
In support of Aegon's purpose to help people take responsibility for their financial
future, Aegon teamed up with the National Financial Educators Council to launch the
Transamerica Financial Educators Academy. With the goal to promote greater personal
financial knowledge in the United States by teaching the basics of successful money
management, the Academy offers an effective process for individuals to become certified to
teach others in their communities. This enables them to help others improve their
financial outlook and become more confident about their financial future.
In the UK, Aegon launched 'Retiready Stability', a new fund for pension customers on
its platform that broadens the range of available investments. This gives investors the
choice of five funds, ranging from low to higher risk. The new option is a very low risk
fund, and is designed for investors seeking to preserve their pension savings, typically
before taking retirement income.
In Spain, Aegon launched a new independent broker service, Aegon Activos. The new
brokerage will provide customers with access to over 30 carefully selected mutual funds
and pension plans, offered by 20 national and international fund managers, life insurance
and savings companies. The launch of Aegon Activos reflects Aegon's commitment to provide
personalized advice in planning and financial protection, with high added value in terms
of funds. In addition, it enables Aegon to expand its product offering in line with the
company's multichannel strategy, which provides customers with a portfolio of diversified
services tailored to their individual savings and investment needs.
Aegon Bank in the Netherlands entered into a partnership with Germany's leading online
peer-to-peer loan marketplace, auxmoney. The partnership between auxmoney and Aegon Bank
grew out of Aegon's December 2014 venture investment in the company. In addition to the
equity stake Aegon already owns in the company, Aegon Bank has committed to provide EUR
150 million funding for loans on the auxmoney platform. Its platform provides a unique
solution to connect and facilitate retail-focused loans directly between borrowers and
lenders. Aegon's investment on auxmoney's lending platform is a strategic move, as crowd
lending marketplaces are becoming increasingly popular with investors.
Empower employees
In the Netherlands, Aegon was named 1st among insurance companies and 25th overall in
the list for companies with over 1,000 employees in the 2015 Best Employer List, conducted
by Effectory and Intermediair. The research for Best Employer in the Netherlands is the
biggest and best-known of its kind. Over 200,000 employees judge more than 300 employers
based in the Netherlands. These high rankings underline the progress Aegon has made in
becoming a preferred employer.
Global Systemically Important Insurer
The Financial Stability Board announced on November 3, 2015, that it has designated
Aegon as one of a group of nine global systemically important insurers (G-SII). Aegon will
continue to engage with supervisors in the upcoming consultations on both the methodology
applied to determine the systemic level of insurance companies and on the definition of
non-traditional insurance and non-insurance activities. In the meantime, Aegon will work
closely with the regulatory authorities to comply with the G-SII framework once it is
finalized.
<pre>
Financial overview
EUR millions Notes Q3 2015 Q2 2015 % Q3 2014 % YTD 2015 YTD 2014 %
Underlying
earnings before tax
Americas 243 358 (32) 134 81 891 767 16
The Netherlands 135 136 (1) 127 6 402 386 4
United Kingdom 27 34 (21) 28 (2) 100 86 16
New Markets 69 62 12 40 74 183 163 12
Holding and other (38) (41) 8 (37) (3) (122) (99) (22)
Underlying
earnings before tax 436 549 (21) 291 50 1,453 1,303 12
Fair value items (103) (293) 65 (296) 65 (554) (675) 18
Realized gains /
(losses) on investments 36 134 (73) 85 (58) 288 392 (27)
Net impairments (12) 7 - 5 - (15) (6) (158)
Other income / (charges) (950) (11) - (29) - (961) (49) -
Run-off businesses 28 3 - (31) - 38 (18) -
Income before tax (565) 389 - 23 - 249 947 (74)
Income tax 41 (39) - 29 43 (107) (160) 33
Net income / (loss) (524) 350 - 52 - 142 787 (82)
Net income / (loss)
attributable to:
Equity holders
of Aegon N.V. (524) 350 - 52 - 141 787 (82)
Non-controlling
interests 0 0 (45) 0 (33) 0 0 -
Net underlying earnings 355 433 (18) 235 51 1,132 987 15
Commissions and
expenses 1,510 1,761 (14) 1,398 8 4,984 4,296 16
of which
operating expenses 9 912 923 (1) 826 10 2,737 2,415 13
New life sales
Life single premiums 1,165 1,062 10 1,806 (35) 3,649 4,115 (11)
Life recurring
premiums annualized 319 411 (23) 372 (14) 1,139 1,111 3
Total recurring
plus 1/10 single 435 518 (16) 552 (21) 1,504 1,522 (1)
New life sales
Americas 10 148 158 (6) 141 5 447 382 17
The Netherlands 24 25 (1) 99 (75) 87 169 (49)
United Kingdom 194 263 (26) 250 (22) 726 777 (7)
New Markets 10 68 72 (5) 61 11 245 194 26
Total recurring
plus 1/10 single 435 518 (16) 552 (21) 1,504 1,522 (1)
New premium production
accident and
health insurance 212 228 (7) 241 (12) 747 737 1
New premium production
general insurance 18 20 (11) 16 10 59 51 18
Gross deposits
(on and off balance)
Americas 10 7,868 9,069 (13) 7,053 12 28,488 24,085 18
The Netherlands 1,000 1,116 (10) 716 40 3,679 1,793 105
United Kingdom 71 88 (20) 90 (21) 239 214 12
New Markets 10 10,455 6,496 61 7,382 42 22,449 15,655 43
Total gross deposits 19,394 16,769 16 15,242 27 54,855 41,746 31
Net deposits
(on and off balance)
Americas 10 711 1,913 (63) 457 55 7,028 5,672 24
The Netherlands 230 355 (35) 338 (32) 1,381 647 113
United Kingdom 39 54 (27) 57 (31) 135 123 11
New Markets 10 3,564 975 - 2,945 21 6,814 2,706 152
Total net deposits
excluding run-off
businesses 4,544 3,296 38 3,797 20 15,358 9,147 68
Run-off businesses (294) (111) (166) (265) (11) (618) (1,047) 41
Total net deposits
/ (outflows) 4,250 3,185 33 3,532 20 14,741 8,100 82
Revenue-generating investments
Sep. 30, Jun. 30, Dec. 31,
2015 2015 % 2014 %
Revenue-generating investments (total) 635,458 645,017 (1) 558,328 14
Investments general account 160,830 158,956 1 153,653 5
Investments for account of policyholders 193,562 205,903 (6) 191,467 1
Off balance sheet investments third parties 281,066 280,158 - 213,208 32
</pre> OPERATIONAL HIGHLIGHTS
Assumption changes and model updates
Aegon reviews its assumptions in the Americas and Asia annually in the third quarter,
which resulted in adjustment to its actuarial and economic assumptions. In addition, as
part of an ongoing commitment to deliver operational excellence, the company reviews and
enhances its models where necessary. These assumption changes and model updates on balance
accounted for charges of EUR 204 million in the third quarter of 2015. The actuarial
assumption changes reduced underlying earnings by
EUR 96 million, the economic assumption changes positively impacted fair value items by
EUR 101 million and charges for model updates amounted to EUR 209 million. As of this
quarter, model updates are included in Other charges and are no longer included in
underlying earnings.
Underlying earnings before tax
Aegon's underlying earnings before tax in the third quarter of 2015 were EUR 436 million,
including charges for actuarial assumption changes of EUR 96 million. Excluding assumption
changes and model updates, earnings increased 4%. Favorable currency movements and
positive mortality experience in the United States more than offset the reduction in
recurring earnings resulting from the assumption changes and model updates implemented in
the United States and Asia, lower earnings from fixed annuities and the impact of
divestments.
Underlying earnings from the Americas were EUR 243 million and included charges for
actuarial assumption changes of EUR 96 million. Lower charges for assumption changes, the
absence of model updates and the stronger US dollar more than offset the recurring impact
of the actuarial assumption changes implemented this quarter, lower fixed annuity earnings
and the divestment of Canada.
In the Netherlands, underlying earnings increased 6% to EUR 135 million, driven by
higher investment income and lower funding costs.
Underlying earnings from Aegon's operations in the United Kingdom were stable in the
third quarter of 2015 at EUR 27 million, as favorable currency movements were offset by
adverse market movements and lower fees.
Underlying earnings from New Markets were up 74% to EUR 69 million. This increase was
driven by higher asset management and performance fees, favorable one-time items, mainly
related to higher than anticipated investment yields, and the absence of assumption
changes and model updates.
Total holding costs remained stable at EUR 38 million.
Net income
The net loss amounted to EUR 524 million, primarily caused by the EUR 751 million book
loss from the sale of the Canadian business.
Fair value items
The loss from fair value items amounted to EUR 103 million. This loss was mainly driven by
hedging programs in the United States, primarily the result of ineffectiveness of the
macro equity hedge program. This more than offset the positive impact of EUR 101 million
from assumption changes, which were related to adjustments to the discount rate of
variable annuity liabilities.
Realized gains on investments
Realized gains on investments declined to EUR 36 million and were driven by normal trading
activity in the Netherlands.
Impairment charges
Gross impairments remained low as a result of the favorable credit environment and
amounted to
EUR 12 million in the third quarter of 2015.
Other charges
Other charges amounted to EUR 950 million. These were primarily due to the book loss on
the divestment of the Canadian insurance business of EUR 751 million. In addition, the
ongoing model review resulted in charges of EUR 209 million, mainly related to the
universal life business in the United States.
Run-off businesses
Earnings from run-off businesses increased to EUR 28 million, due to favorable mortality
and lapse experience.
Income tax
Income tax amounted to a positive EUR 41 million in the third quarter, driven by tax
credits in especially the United States. The effective tax rate on underlying earnings was
19%.
Return on equity
Return on equity was 6.8% in the third quarter of 2015. Return on equity excluding the
charges for actuarial assumption updates in the United Stated and Asia amounted to 8.1%
over the same period.
Operating expenses
In the third quarter, operating expenses increased by 10% to EUR 912 million. This was
driven by a stronger US dollar and higher defined benefit expenses, which was the result
of lower interest rates. At constant currencies, the increase was 1%.
Sales
Aegon's total sales increased 12% to EUR 2.6 billion in the third quarter of 2015, the
result of a stronger US dollar, higher asset management deposits and increased indexed
universal life sales. Gross deposits increased 27%, driven by higher deposits in Aegon
Asset Management and strong growth in bank deposits in the Netherlands. Net deposits,
excluding run-off businesses, increased to
EUR 4.5 billion due to higher net inflows in Aegon Asset Management. New life sales were
down 21% to EUR 435 million, as higher indexed universal life sales in the United States
and favorable currency movements were more than offset by the impact of the withdrawal of
the universal life secondary guarantee product in the United States and lower pension
sales in the Netherlands and United Kingdom. New premium production for accident & health
and general insurance declined to
EUR 230 million, as the effect of a stronger US dollar was more than offset by fewer
portfolio acquisitions in the United States.
Market consistent value of new business
The market consistent value of new business amounted to EUR 125 million. The positive
effect of the stronger US dollar and product adjustments in the United States were more
than offset by the negative impact of lower life sales and interest rates.
Revenue-generating investments
Revenue-generating investments declined by 1% during the third quarter of 2015 to EUR 635
billion. This was due to unfavorable market movements resulting from lower equity markets,
which more than offset net inflows.
Capital management
Shareholders' equity declined by EUR 1.0 billion during the third quarter and amounted to
EUR 24.1 billion on September 30, 2015. Revaluation reserves increased slightly by EUR 0.1
billion to EUR 7.4 billion. Aegon's shareholders' equity, excluding revaluation reserves
and defined benefit plan remeasurements, declined to EUR 18.2 billion - or EUR 8.57 per
common share - at the end of the third quarter. This was caused by the loss generated in
the quarter and the payment of the 2015 interim dividend.
The gross financial leverage ratio increased to 28.8% in the third quarter, driven by
the book loss on the divestment of Canada. Aegon has earmarked the CAD 600 million
proceeds of this divestment to redeem the USD 500 million 4.625% senior bond, due in
December 2015. Excess capital in the holding increased to EUR 1.8 billion. Dividends of
EUR 0.5 billion paid to the holding by the United States, resulting from the divestments
of Canada and Clark Consulting, were partly offset by the payment of the 2015 interim
dividend, interest payments and operating expenses.
Aegon's Insurance Group Directive (IGD) solvency ratio increased to 225% in the third
quarter as a result of divestments, earnings generated in the quarter and one-time
adjustments. The capital in excess of the S&P AA threshold in the United States declined
to USD 0.6 billion, due to negative market impacts on hedges and one-time items resulting
from the assumption changes and model updates. In the Netherlands, the IGD ratio,
excluding Aegon Bank, moved up significantly to ~250%, driven mainly by a higher valuation
of mortgages in the general account. The Pillar I ratio in the United Kingdom, including
the with-profit fund, increased to ~140%, due to earnings generated in the quarter and
positive market impacts.
Cash flows
Operational free cash flows excluding market impacts and one-time items amounted to
EUR 350 million in the third quarter of 2015. The charges from one-time items of EUR 243
million were primarily related to the assumption changes and model updates. Positive
market impacts amounted to EUR 131 million as a higher valuation of mortgages in the
general account in the Netherlands more than offset hedging losses on variable annuities
in the United States. Operational free cash flows including market impacts and one-time
items amounted to EUR 238 million for the quarter.
<pre>
Financial overview, Q3 2015 geographically
Holding,
other
The United New activities &
EUR millions Americas Netherlands Kingdom Markets eliminations Total
Underlying earnings before
tax by line of business
Life 90 81 14 27 - 211
Individual savings and
retirement products 70 - - (3) - 67
Pensions 83 47 13 3 - 145
Non-life - 1 - 3 - 4
Asset Management - - - 40 - 40
Other - 6 - - (38) (32)
Underlying earnings before tax 243 135 27 69 (38) 436
Fair value items (146) (1) 34 7 3 (103)
Realized gains / (losses)
on investments 2 32 1 1 - 36
Net impairments (5) (6) - (1) - (12)
Other income / (charges) (909) - 3 (43) - (950)
Run-off businesses 28 - - - - 28
Income before tax (789) 160 65 34 (35) (565)
Income tax 73 (34) (4) (8) 13 41
Net income / (loss) (716) 126 62 26 (22) (524)
Net underlying earnings 205 104 24 46 (25) 355
Employee numbers
Sep. 30, Jun. 30, Dec. 31,
2015 2015 2014
Employees 28,675 28,241 28,602
of which agents 5,642 5,207 5,713
of which Aegon's share of employees in
joint ventures and associates 1,694 1,694 1,614
</pre> Full version press release
Use this link
[http://www.aegon.com/en/Home/Investors/News/Press-Releases/Archive/Earnings-Q3-2015 ] for
the full version of the press release.
ADDITIONAL INFORMATION
The Hague - November 12, 2015
Presentation
The conference call presentation is available on aegon.com
[http://www.aegon.com/en/Home/Investors/News/Presentations/Archive/Q3-2015-Results ] as of
7.30 a.m. CET.
Supplements
Aegon's Q3 2015 Financial Supplement and Condensed Consolidated Interim Financial
Statements
are available on aegon.com [http://www.aegon.com/quarterlyresults ].
Conference call including Q&A
9:00 a.m. CET
Audio webcast on aegon.com [http://www.aegon.com/quarterlyresults ]
Dial-in numbers
United States: +1 646 254 3362
United Kingdom: +44 203 427 1919
The Netherlands: +31 20 716 8256
Passcode: 7116860
Two hours after the conference call, a replay will be available on aegon.com
[http://www.aegon.com/quarterlyresults ].
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 and market consistent value of new business.
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. 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. In addition, return on equity is a ratio
using a non-GAAP measure and is calculated by dividing the net underlying earnings after
cost of leverage by the average shareholders' equity excluding the preferred shares, the
revaluation reserve and the reserves related to defined benefit plans.
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 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, 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 or a change by Aegon in applying such
regulations and policies, voluntarily or otherwise, 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 and excess capital and leverage ratio management
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.
--------------------------------------------------
[1] Pro forma data as of August 31, 2015 and as communicated at time of announcement
<pre>
Media relations
Debora de Laaf
+31(0)70-344-8730
[email protected]
EmptyBreak:MARKER
Investor relations
Willem van den Berg
+31(0)70-344-8305
[email protected]
</pre>
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