Aegon's Q1 2016 Results Impacted by Volatile Markets
Underlying earnings before tax impacted by lower average equity markets
<pre>
- Underlying earnings increase to EUR 462 million, as higher earnings from Europe
more than offset lower earnings from the Americas due to one-time items and lower
average equity markets during the quarter
- Net income down to EUR 143 million, as performance of alternative assets and hedges
drive fair value losses of EUR 358 million
- Return on equity of 7.3%
</pre> Continued strong sales from fee-based deposit businesses
<pre>
- Sustained strong US retirement plan and asset management sales lead to EUR 30
billion gross deposits; net deposits of EUR 7.6 billion
- New life insurance sales down 11% to EUR 266 million driven by lower sales in Asia and
Poland
- Accident & health and general insurance sales down 15% to EUR 286 million, mainly due
to US
- Market consistent value of new business decreases to EUR 133 million due to lower life
sales and interest rates
</pre> Capital position reflects return of capital to shareholders and market impacts
<pre>
- Solvency II ratio declines to ~155% on a pro forma basis, as capital generation
and the UK annuity reinsurance transaction were offset by adverse market impacts, the
deduction of the 2015 final dividend and the share buyback
- Capital generation of the operating units excluding market impacts and one-time items
of EUR 0.3 billion
- Cash buffer at the holding of EUR 1.0 billion and gross leverage ratio of 28.7%
- Association Aegon to participate for EUR 58 million in EUR 400 million share buyback
</pre> Statement of Alex Wynaendts, CEO
"Aegon's underlying earnings and net income for the first quarter were impacted by
volatile financial markets, which also had an impact on our capital position. Our Solvency
II ratio nonetheless remains well within our target range, and also reflects the impact of
the full share buyback and anticipated pay-out of the final dividend.
"I am pleased that we continue to make significant progress on achieving our strategic
objectives. This quarter, we announced both the divestment of two-thirds of our UK annuity
book and the acquisition of BlackRock's platform-based defined contribution business.
These transactions enable us to fully focus on our fast-growing platform and serve the
growing needs of our more than two million customers in the UK.
"By transforming our businesses we aim to become a more cost-effective organization,
while continuing to grow and diversify our customer base across all our markets. This is
leading to very strong deposits, especially in our fee-based retirement plan and asset
management businesses."
<pre>
Key performance indicators
EUR millions b) Notes Q1 2016 Q4 2015 % Q1 2015 %
Underlying earnings before tax 1 462 453 2 432 7
Net income / (loss) 143 (580) - 289 (50)
Sales 2 3,560 2,886 23 2,625 36
Market consistent value of new business 3 133 149 (11) 140 (5)
Return on equity 4 7.3% 8.0% (9) 6.0% 21
</pre> Strategic highlights
<pre>
- Two thirds of UK annuity portfolio sold to Rothesay Life
- Acquisition of BlackRock's UK DC platform and administration business
- Transamerica launches new variable annuity investment options
- AIFMC named best fund management company at Chinese Golden Bull Fund Awards
</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 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 April 11, Aegon announced the sale of two thirds of its UK annuity portfolio to
Rothesay Life. Aegon initially reinsured GBP 6 billion of liabilities to Rothesay Life,
which will be followed by a Part VII transfer. This transaction is an important step in
the process to fully divest the UK annuity portfolio, and follows the earlier announcement
that the UK annuity portfolio is no longer strategically core to Aegon. By selling the
majority of the UK annuity portfolio, Aegon will be able to fully focus on its
fast-growing platform. The platform enables workplace savers and consumers to build up
savings during their working lives, and then manage an income in retirement with the
support of a financial advisor or directly online.
In line with Aegon's strategy to focus on its pension and protection customers, Aegon
recently announced the acquisition of BlackRock's Defined Contribution (DC) pension and
administration platform business, subject to court approval. The strength of Aegon's
workplace pension offering in the SME market, in which BlackRock's DC platform and
administration business specializes, will be supplemented by access to large plan,
trust-based and investment-only markets. This acquisition will further improve the scale
and competitive position of Aegon's pension business in the United Kingdom, as well as
strengthen Aegon's already fast-growing platform proposition.
In the Netherlands, Aegon announced a strategic partnership with mobile innovation
specialist MOBGEN. MOBGEN develops innovative mobile systems and applications for
multinational companies, better enabling them to connect digitally with their customers.
This long-term strategic partnership will allow Aegon to take advantage of MOBGEN's
extensive knowledge and experience, and supports Aegon's ambition to accelerate its
digital transformation. In addition, the partnership provides MOBGEN with access to
Aegon's financial expertise.
Operational excellence
In the US, Transamerica announced three new variable annuity investment options with
underlying portfolios that invest across a series of BlackRock's iShares smart beta
exchange-traded funds. Smart beta investment strategies track non-traditional and
fundamentally constructed indices and aim to take advantage of systematic biases or
inefficiencies in the market, thereby helping investors reduce risk, generate income and
enhance returns. Offering these new options is part of Aegon's commitment to providing a
broad range of investment solutions for financial advisors and customers.
Just one year after its launch, Aegon's joint venture GoBear - Asia's only impartial
unbiased metasearch engine for insurance and financial products - recorded 50%
month-on-month growth in usage, and today has served more than 1.2 million users in total.
This puts GoBear among Asia's fastest-growing fintech start-ups in terms of users. GoBear
is leading the way in making financial shopping experience with an unbiased and
personalized comparison process. Its user-oriented platform offers customers a free and
transparent comparison service based on their own unique financial needs.
Customer loyalty
Aegon expanded its global retirement research network with the launch of the Instituto
de Longevidade Mongeral Aegon in Brazil. Backed by Mongeral Aegon, Aegon's joint venture
in Brazil, the Instituto de Longevidade was established in response to a particularly
urgent need in Brazil. As a result of the increase in life expectancy and falling birth
rate, Brazilians aged 50 and over will soon represent an even higher proportion of the
population than in most other countries. The main objective of the institute is to create
awareness about longevity and retirement in Brazil by providing research and solutions,
and by engaging with the different stakeholders. The work of the new institute complements
that of the Aegon Center for Longevity and Retirement, and the Transamerica Center for
Retirement Studies.
At the Chinese Golden Bull Fund Awards, Aegon's Shanghai-based Chinese joint venture,
Aegon Industrial Fund Management Company (AIFMC), received six awards, including the
Golden Bull Award for being a Top Ten Fund Management Company. In total, more than 100
fund management companies and 2,000 funds took part. Over the last nine years, AIFMC has
been a seven-time winner of the Golden Bull Award for being a Top Ten Fund Management
Company. AIFMC is not only widely recognized as an equity investment leader, but also for
fixed income and money market investments. It is known for its consistent strategy of
being focused on long-term return and stable growth.
Underlining Aegon's capabilities as a customer-centric organization, Aegon's joint
venture in India, Aegon Life, was awarded the 'Best Service Quality Program' at the Indian
Service Quality Awards 2016. This award recognizes Aegon Life's work to adopt quality
management principles. The Indian Service Quality Awards promote quality services and give
a special recognition to organizations that contribute significantly on this front.
Empowered employees
Aegon launched the Global Aegon Awards, an initiative to celebrate achievements and
share excellence across the organization. Six of the categories that employees could be
nominated for highlighted Aegon's strategic focus: Best community engagement, Best empower
initiative, Best improvement, Most customer-centric team, Best employee in support and
staff, and Best employee in customer service. The awards were a great success and provided
an opportunity for employees to come together to share best practices, learn from one
another's experiences and build international relationships. These opportunities will
contribute to Aegon becoming a truly digital and customer-centric company.
<pre>
Financial overview
EUR millions Notes Q1 2016 Q4 2015 % Q1 2015 %
Underlying earnings before tax
Americas 283 310 (9) 290 (2)
Europe 169 142 19 141 20
Asia - 3 (86) (3) -
Asset Management 45 38 19 45 -
Holding and other (36) (39) 8 (42) 14
Underlying earnings before tax 462 453 2 432 7
Fair value items (358) (65) - (159) (125)
Realized gains / (losses) on investments 54 58 (7) 119 (54)
Net impairments (36) 64 - (11) -
Other income / (charges) (6) (1,293) 100 (1) -
Run-off businesses 28 21 38 16 78
Income before tax 145 (762) - 396 (63)
Income tax (1) 182 - (107) 99
Net income / (loss) 143 (580) - 289 (50)
Net income / (loss) attributable to:
Equity holders of Aegon N.V. 143 (581) - 289 (50)
Net underlying earnings 352 393 (10) 315 12
Commissions and expenses 1,744 1,844 (5) 1,742 -
of which operating expenses 9 960 997 (4) 902 6
New life sales
Life single premiums 610 561 9 959 (36)
Life recurring premiums annualized 205 216 (5) 203 1
Total recurring plus 1/10 single 266 273 (2) 299 (11)
New life sales 10
Americas 144 152 (6) 141 2
Europe 85 94 (9) 93 (9)
Asia 37 27 39 65 (43)
Total recurring plus 1/10 single 266 273 (2) 299 (11)
New premium production accident
and health insurance 262 213 23 307 (15)
New premium production general insurance 24 25 (1) 22 9
Gross deposits (on and off balance) 10
Americas 13,472 8,511 58 11,550 17
Europe 3,441 3,107 11 3,063 12
Asia 73 63 15 202 (64)
Asset Management 13,092 12,079 8 5,147 154
Total gross deposits 30,078 23,761 27 19,963 51
Net deposits (on and off balance) 10
Americas 4,825 726 - 4,404 10
Europe 731 342 114 803 (9)
Asia 59 50 18 190 (69)
Asset Management 2,240 1,662 35 2,081 8
Total net deposits excluding run-off businesses 7,855 2,780 183 7,479 5
Run-off businesses (240) (215) (11) (213) (13)
Total net deposits / (outflows) 7,615 2,564 197 7,266 5
Revenue-generating investments
Mar. 31, Dec. 31, Mar. 31,
2016 2015 % 2015 %
Revenue-generating investments (total) 704,554 710,458 (1) 639,755 10
Investments general account 162,784 160,792 1 172,504 (6)
Investments for account of policyholders 191,286 200,226 (4) 215,291 (11)
Off balance sheet investments third parties 350,483 349,440 - 251,960 39
</pre> Operational highlights
Underlying earnings before tax
Aegon's underlying earnings before tax in the first quarter of 2016 increased 7% compared
with the first quarter of 2015 to EUR 462 million. Underlying earnings included adverse
one-time items of EUR 25 million in the first quarter of 2016. Lower account balances due
to lower average equity markets during the quarter had an impact of EUR 14 million on
underlying earnings in the Americas.
Underlying earnings from the Americas declined by 2% to EUR 283 million, mainly
because of the recurring impact of the actuarial assumption changes and model updates
announced and implemented in the third quarter of 2015 and lower fee income from lower
average equity markets during the quarter.
In Europe, underlying earnings increased by 20% to EUR 169 million. This was driven by
lower amortization of deferred policy acquisition costs (DPAC) in the United Kingdom as a
result of the write down of deferred policy acquisition costs related to upgrading
customers to the retirement platform in the fourth quarter of 2015, and the normalization
of surrenders in Poland.
The result from Aegon's operations in Asia improved to nil, mainly driven by growth of
the High Net Worth (HNW) businesses and improved mortality results.
Asset Management underlying earnings remained at a high level of EUR 45 million, as
higher performance fees in China and the acquisition of a minority stake in La Banque
Postale Asset Management were offset by higher expenses related to growth of the business.
Total holding costs declined to EUR 36 million, primarily due to lower funding costs
after the redemption of a senior bond in December 2015.
Net income
Net income declined to EUR 143 million, caused by higher losses from fair value items
and lower realized gains.
Fair value items
The loss from fair value items was EUR 358 million. This was mainly driven by
underperformance of alternative investments in the United States, the macro equity hedge
program due to hedge mismatches and the impact of the mismatch between IFRS accounting and
the Solvency II framework on Aegon's interest rate hedges in the Netherlands.
Realized gains on investments
Realized gains on investments amounted to EUR 54 million and were mainly the result of
real estate divestments in the United States and normal trading activity.
Impairment charges
Impairments were EUR 36 million for the quarter and primarily related to investments
in the energy industry in the United States.
Other charges
Other charges amounted to EUR 6 million.
Run-off businesses
Earnings from run-off businesses improved to EUR 28 million, driven by favorable
mortality claims.
Income tax
Income tax amounted to EUR 1 million in the first quarter, driven by tax exempt income,
the positive impact of tax credits and certain losses being taxed at a higher rate than
the group as a whole. The effective tax rate on underlying earnings was 24%.
Return on equity
Return on equity increased to 7.3% in the first quarter of 2016, driven by higher net
underlying earnings and lower shareholders' equity as a result of the write down of
deferred policy acquisition costs in the United Kingdom related to upgrading customers to
the retirement platform in the fourth quarter of 2015.
Operating expenses
In the first quarter, operating expenses increased by 6% to EUR 960 million, driven by
higher expenses related to growth of the business in Asset Management, the Mercer and La
Banque Postale acquisitions and one-time employee expenses in the United States. Excluding
the impact of these acquisitions, operating expenses increased by 4%, mainly caused by
currency movements, one-time expenses in the Americas and investments to support the
growth of the business in Asia and Asset Management.
Sales
Aegon's total sales increased by 36% to EUR 3.6 billion in the first quarter of 2016.
This increase was mainly the result of higher gross deposits in Retirement Plans and Asset
Management. The former was mainly driven by the Mercer acquisition, while the latter was
related to higher recognized gross deposits in AIFMC and the acquisition of a minority
stake in La Banque Postale Asset Management. Gross deposits increased by 51% to EUR 30.1
billion, primarily for the reasons mentioned above. Excluding these, gross deposits
increased 7%, as higher deposits in Retirement Plans and in Knab in the Netherlands more
than offset a lower contribution from variable annuities. Net deposits, excluding run-off
businesses, increased to EUR 7.9 billion due to the Mercer acquisition. New life sales
were down 11% to EUR 266 million, as higher indexed universal life sales in the United
States were more than offset by lower HNW sales in Asia and a decline of unit-linked sales
in Poland. New premium production for accident & health and general insurance declined to
EUR 286 million, driven by the impact of lower portfolio takeovers and product re-pricing
in the United States.
Market consistent value of new business
The market consistent value of new business amounted to EUR 133 million. The positive
effect of a favorable product mix in life insurance in the United States was more than
offset by the negative impact of lower interest rates on sales and margins in Asia and the
United States, and a change in the product mix for pensions in the Netherlands.
Revenue-generating investments
Revenue-generating investments slightly declined during the first quarter of 2016 to
EUR 705 billion, as net inflows were more than offset by adverse currency movements.
Capital management
Shareholders' equity increased by EUR 0.2 billion compared with the end of the previous
quarter to EUR 22.8 billion on March 31, 2016. Revaluation reserves increased by EUR 1.3
billion to EUR 7.8 billion. Aegon's shareholders' equity, excluding revaluation reserves
and defined benefit plan remeasurements, declined to EUR 16.9 billion - or EUR 8.13 per
common share - at the end of the first quarter, as adverse currency movements and the
impact of the share buyback more than offset earnings generated in the quarter.
The gross leverage ratio increased to 28.7% in the first quarter, primarily due to the
EUR 0.2 billion cost of the first tranche of the share buyback completed in the first
quarter. The cash buffer in the holding declined to EUR 1.0 billion as a result of the
share buyback, capital contributions to operating units of EUR 0.1 billion, interest
payments and holding operating expenses.
Aegon's Solvency II ratio declined to ~155% on a pro forma basis in the first quarter,
which includes the benefit of the reinsurance of two thirds of the annuity portfolio in
the United Kingdom, excluding the Part VII transfer. This decline was mainly driven by
taking into account the full EUR 400 million share buyback that is in progress, the
deduction of the final dividend over 2015, and adverse market impacts. The RBC ratio in
the United States increased to ~480%, driven by earnings generated in the quarter and the
benefit of declining interest rates on variable annuity hedges. In the Netherlands, the
Solvency II ratio declined to ~135%, driven by widening mortgage spreads, credit ratings
migration, and the impact of lower interest rates. In the United Kingdom, the Solvency II
ratio at ~140% on a pro forma basis of the reinsurance transaction excluding the Part VII
transfer, was also negatively impacted by lower interest rates and adverse credit spread
movements.
Capital generation
Capital generation of the operating units, amounted to EUR (0.6) billion in the first
quarter of 2016. Market impacts in the quarter include the effects of widening credit
spreads, credit ratings migration and lower interest rates. Excluding market impacts of
EUR (0.7) billion and one-time items of EUR (0.2) billion, capital generation amounted to
EUR 0.3 billion for the quarter.
Regulation
On April 6, the United States Deparment of Labor (DOL) issued the final version of its
new Fiduciary Rule, which will change the regulation around retirement products and will
come into full effect as of January 1, 2018. Aegon anticipates the Fiduciary Rule to have
a short-term negative impact on variable annuity sales of approximately 10%-20%, in line
with industry expectations. In addition, the extended transition period allowed under this
rule will also enable Aegon to avoid major disruption. Most important, there is no impact
on the variable annuity back book.
Aegon is committed to complying with the various requirements of this rule, and within
the prescribed timeframe. Aegon is focused on ensuring organizational readiness for this
rule, including developing a variety of solutions that enable Aegon to address the needs
of its customers and distribution partners in a post-Rule environment. Aegon's business is
helping people achieve a lifetime of financial security, and it remains confident in its
ability to continue to do so.
Share buyback
On January 13, 2016, Aegon announced and commenced its EUR 400 million share buyback
program. The first tranche of EUR 200 million was completed on March 31, 2016 through the
repurchase of 41.1 million shares. The second tranche of EUR 200 million was announced and
started on April 1, 2016. As of May 11, 2016, 29 million shares have been repurchased at
an average repurchase price of EUR 4.97 per share.
Vereniging Aegon (Association Aegon) will participate in the share buyback program and
sell EUR 58 million of its Aegon shares in an off-market transaction with the company in
order to maintain its current level of voting rights. This transaction will be executed on
May 19, 2016. The shares will be sold by Association Aegon at the volume-weighted average
price between May 13 and May 19, 2016. The transaction will be an integral part of the
second tranche.
<pre>
Financial overview, Q1 2016 geographically
Holding,
other
Asset activities &
EUR millions Americas Europe Asia Management eliminations Total
Underlying earnings before tax by
line of business
Life 84 103 5 - - 192
Individual savings and
retirement products 129 - (4) - - 125
Pensions 71 51 - - - 122
Non-life - 6 - - - 6
Asset Management - - - 45 - 45
Other - 9 (0) - (36) (28)
Underlying earnings before tax 283 169 0 45 (36) 462
Fair value items (220) (71) 3 - (70) (358)
Realized gains / (losses)
on investments 33 17 4 0 - 54
Net impairments (32) 1 (1) - (4) (36)
Other income / (charges) (6) 1 (0) (0) - (6)
Run-off businesses 28 - - - - 28
Income before tax 87 116 6 45 (110) 145
Income tax 7 (17) (5) (13) 26 (1)
Net income / (loss) 94 99 1 32 (84) 143
Net underlying earnings 211 138 (4) 32 (26) 352
Employee numbers
Mar. 31, Dec. 31, Mar. 31,
2016 2015 2015
Employees 29,922 31,530 27,824
of which agents 6,514 8,433 5,020
of which Aegon's share of employees in joint
ventures and associates 1,962 1,983 1,628
</pre> Full version press release
Use this link [http://www.aegon.com/results ] for the full version of the release.
Additional information
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 Q1 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
<pre>
United States: +1 212 444 0896
United Kingdom: +44(0)20 3427 1906
The Netherlands: +31(0)20 721 9158
</pre>
Passcode: 3843192
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 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-IFRS 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 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 or the potential exit of
the United Kingdom and/or Greece 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, 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 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, which 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..
All comparisons in this release are against the first quarter of 2015, unless stated
otherwise.
Aegon's roots go back more than 170 years - to the first half of the nineteenth
century. Since then, Aegon has grown into an international company, with businesses in
more than 20 countries in the Americas, Europe and Asia. Today, Aegon is one of the
world's leading financial services organizations, providing life insurance, pensions and
asset management. Aegon's purpose is to help people achieve a lifetime of financial
security. More information: aegon.com [http://www.aegon.com ].
<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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