1% Tax On Bank Deposits And Withdrawals

Aegon Delivers Strong Q1 2013 Results.

THE
HAGUE, the
 , Du. ‘s Gravenhage or Den Haag, Fr. La Haye, city (1994 pop. 445,279), administrative and governmental seat of the Kingdom of the Netherlands, capital of South Holland prov., W Netherlands, on the North Sea.
 
Netherlands
 , Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe.
, May 8, 2013 /PRNewswire/ —

* Solid underlying earnings; net income impacted by equity hedging

* Underlying earnings of
EUR

 445 million; effects of business growth
and
favorable
  
adj.
1. Advantageous; helpful:

2. Encouraging; propitious:

3.
 equity markets offset by exits from partnerships in
Spain
 Span. España , officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe.
 and higher sales and employee performance related expenses

* Decline in net income to EUR 204 million mainly due to losses on
equity hedging programs established to protect the capital position

* Return on equity decreases to 6.3%, or 7.0% excluding run-off
businesses, as high net income in previous periods resulted in higher
average shareholders’ equity

* Continued sales momentum in
accumulation

 and at-retirement
products

* New life sales increase 12% to EUR 499 million; particularly
strong pension sales in the UK and NL

* Accident & health and general insurance sales increase 14% to
EUR 239 million

* Deposits 9% lower at EUR 10 billion; substantial increase in

variable annuity

 and retail mutual fund deposits offset by lower asset
management and pension deposits

* Market consistent value of new business increases significantly to
EUR 232 million, due to higher sales and improved margins as a result of
product
repricing
 
 and
redesign
  
tr.v. re·de·signed, re·de·sign·ing, re·de·signs
To make a revision in the appearance or function of.


re
 

* Strong capital position and cash flows

*
IGD

abbr.
immunoglobulin D


IgD

immunoglobulin D. See immunoglobulin.
[sup.[] [sup.a)] [sup.]]
solvency ratio

 stable at 224%; US
RBC
 red blood cell.


 or rbc
abbr.
red blood cell


n See red blood cell count.


RBC

red blood cells; red blood (cell) count (see blood count).
 ratio of ~485%

* Excess capital of EUR 1.8 billion at holding level

* Operational free cash flow of EUR 553 million, including
exceptional items of EUR 233 million

Statement of
Alex

 Wynaendts,
CEO

 

“Our solid results, in terms of underlying earnings, sales and
our capital position confirm that our strategic priorities are the right
ones. In the first quarter, the sharp rise in equity markets resulted in
a loss on our equity hedging programs which impacted net income. These
hedging programs have been put in place to protect our capital position,
in line with our strategy to reduce Aegon’s exposure to financial
market risk. The
gradual

 improvement of financial markets resulted in
impairments reaching their lowest level since the start of the financial
crisis in 2008.

“The recent conclusion of our partnership with Caja de Ahorros
del Mediterraneo at favorable terms, along with our new long-term
exclusive distribution agreement with Banco
Santander
 city (1990 pop. 194,221), capital of Cantabria prov., N Spain, in Cantabria, on the Bay of Biscay. It is a seaport, fishing center, and a popular resort. On the nearby peninsula of Magdalena is a former royal summer palace.
, marks the
successful
restructuring

 of our business in Spain. In the UK, our focus
on reducing expenses, while also making the necessary investments in new
platform capabilities, has positioned
Aegon

 to capture the significant
growth opportunities in the new environment. Overall, this was a solid
quarter for Aegon and it is clear our strategy is delivering the
intended benefits for our customers, shareholders, employees and
business partners.”

     Key performance indicators
                                                     Q1    Q4         Q1
    amounts in EUR millions [b)]            Notes  2013  2012    %  2012
%
    Underlying earnings before tax              1   445   461  (3)   439
1
    Net income                                  2   204   431 (53)   525
(61)
    Sales                                       3 1,738 1,813  (4) 1,758
(1)
    Market consistent value of new business     4   232   204   14   125
86
    Return on equity                            5  6.3%  7.4% (15)  7.1%
(11) 

STRATEGIC HIGHLIGHTS

* Restructuring of
Spanish
 river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river.
 business completed with exit from
CAM
 mechanical device for converting a rotating motion into a reciprocating, or back-and-forth, motion, or for changing a simple motion into a complex one.
 partnership

* Aegon receives ‘Leading Innovation’ and ‘Best
Workplace Savings Platform’ awards in the UK

* New online tools launched, including social network
insurer

 Kroodle

* Company-wide employee survey confirms increased employee
engagement

Aegon ‘ s ambitionAegon’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
 verb To encourage or provide a person with the means or information to become involved in solving his/her own problems
 employees. These key objectives have been

embedded

 in all Aegon businesses. They provide the strategic framework
for the company’s
ambition

Alger, Horatio

author of a series of rags-to-riches stories. [Am. Lit.: Ragged Dick]

Bart, Lily

sacrifices her principles and her chance for love in schemes to climb the social ladder. [Am. Lit.
 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.

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 position.

Continued economic uncertainty has increased the opportunities for
Aegon in pursuing its purpose of helping people take responsibility for
their financial future. To capture these opportunities, Aegon is
accelerating 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.

Optimize portfolioAegon has reached an agreement with
Banco Sabadell

 to sell its 50% stake in its life insurance partnership originally
established with Caja de Ahorros del Mediterraneo (CAM) for a
consideration of EUR 449.5 million. This amount, combined with the
proceeds from its two previously announced joint venture exits (Banca
Civica and Unnim Banc), brings the total realized by Aegon to EUR 1
billion. This transaction with Banco Sabadell completes Aegon’s
restructuring of its business in Spain after announcing plans last year
to exit certain partnerships as a result of the ongoing consolidation
within the bank sector.

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 to distribute life and general
insurance products through its extensive network of over 4,600 bank
branches. This long-term alliance with Spain’s largest financial
group provides access to a potential client base of twelve million
individuals across the country. Aegon will also continue to distribute
its life insurance and protection products through its network of
agents, as well as through the branch networks of Liberbank and Caja
Badajoz, the company’s other two joint venture partners.

Deliver operational excellenceAegon recently received two awards for
its Aegon Retirement Choices (
ARC
 in electricity, highly luminous and intensely hot discharge of electricity between two electrodes. The arc was discovered early in the 19th cent. by the English scientist Sir Humphry Davy, who so named it because of its shape.
) platform in the United Kingdom within
the categories ‘Leading Innovation’ and ‘Best Workplace
Savings Platform’. The awards were given at the annual Platform
Awards in
London
 city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826.
, hosted by The Platforum. The platform is recognized
for the innovative
seamless

 link it makes between Workplace Savings and
At-Retirement. ARC offers a simple, online interface where both
customers and advisors can flexibly manage their savings and retirement
income, creating a smooth transition from
retirement planning

 to
retirement living.

Enhance customer loyaltyPutting the customer first is central to
Aegon’s strategy and long-term ambitions. Management within all
business units are fully aligned and incentivized to create a customer
centered culture and to measure customer satisfaction on a consistent
basis. A key element of Aegon’s strategy is to get closer to its
customers by an increased use of technology and a greater focus on the
needs of the customers at every level within the organization.

Increasingly, individuals are exploring
financial services

 and
insurance-related products online and desire greater knowledge about how
certain products and services will address their needs. New online tools
were recently launched in the Dutch and the US market. In the
Netherlands, Aegon launched Kroodle, one of the world’s first
Facebook insurance products. Kroodle offers innovative, online products
allowing customers in the Netherlands to purchase insurance and manage
their accounts through their Facebook profile. In the
United States
 officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world’s third largest country in population and the fourth largest country in area.
, the
improved Transamerica Direct website makes it easy for customers to
learn more about their insurance needs and make purchase decisions. It
offers videos, a downloadable guide and a new Plan Builder tool to help
educate customers on the different types of insurance products available
to them. These are just two examples of the many investments Aegon is
making that are expected to yield results in the longer-term and that
support the company’s strategy and ambitions.

Empower employeesAegon realizes that continued success is only
possible with the commitment and dedication of its employees and
recently completed its second annual employee engagement survey. The
survey’s participation rate increased from 78% to 89% this year.
The results, expressed in ‘Engagement’ and
‘Enablement’, were up from 63 points to 67 points and from 64
points to 67 points respectively. This provides clear evidence that the
initiatives pursued in each business unit are working to help employees
better understand Aegon’s goals and how they individually
contribute to the company’s success.

     Financial overview c)
    EUR millions                                    Notes Q1 2013 Q4
2012    % Q1 2012    %
    Underlying earnings before tax
    Americas                                                312     352
(11)    303      3
    The Netherlands                                          85      85
-      81      5
    United Kingdom                                           24      27
(11)     30    (20)
    New markets                                              62      52
19      88    (30)
    Holding and other                                       (38)    (55)
31     (63)    40
    Underlying earnings before tax                          445     461
(3)    439      1
    Fair value items                                       (286)    (77)
-     148      -
    Realized gains / (losses) on investments                113     149
(24)     45    151
    Impairment charges                                      (17)    (58)
71     (41)    59
    Other income / (charges)                                 (4)    106
-     (17)    76
    Run-off businesses                                      (14)    (15)
7      (2)     -
    Income before tax                                       237     566
(58)    572    (59)
    Income tax                                              (33)   (135)
76     (47)    30
    Net income                                              204     431
(53)    525    (61)
    Net underlying earnings                                 323     357
(10)    338     (4)
    Commissions and expenses                              1,417   1,465
(3)  1,384      2
    of which operating expenses                      11     804     835
(4)    766      5
    New life sales
    Life single premiums                                  1,491   2,058
(28)  1,160     29
    Life recurring premiums annualized                      350     471
(26)    329      6
    Total recurring plus 1/10 single                        499     677
(26)    445     12
    New life sales
    Americas                                         12     110     148
(26)    120     (8)
    The Netherlands                                          40     166
(76)     32     25
    United Kingdom                                          286     306
(7)    213     34
    New markets                                      12      63      57
11      80    (21)
    Total recurring plus 1/10 single                        499     677
(26)    445     12
    New premium production accident and health insurance    225     196
15     195     15
    New premium production general insurance                 14      16
(13)     14      -
    Gross deposits (on and off balance)
    Americas                                         12   6,988   6,615
6   7,392     (5)
    The Netherlands                                         404     282
43     560    (28)
    United Kingdom                                           49      15
-       8      -
    New markets                                      12   2,563   2,334
10   3,083    (17)
    Total gross deposits                                 10,004   9,246
8  11,043     (9)
    Net deposits (on and off balance)
    Americas                                         12   1,613     788
105   1,061     52
    The Netherlands                                        (134)   (248)
46    (185)    28
    United Kingdom                                           40       5
-      (1)     -
    New markets                                      12     145     446
(67)  1,364    (89)
    Total net deposits excluding run-off businesses       1,664     991
68   2,239    (26)
    Run-off businesses                                   (1,073)   (601)
(79) (1,160)     8
    Total net deposits                                      591     390
52   1,079    (45)
    Revenue-generating investments
                                                                  Mar.
Dec.
                                                                   31,
31,
                                                                  2013
2012    %
    Revenue-generating investments (total)                     476,236
459,077    4
    Investments general account                                145,718
145,021    -
    Investments for account of policyholders                   159,563
152,968    4
    Off balance sheet investments third parties                170,955
161,088    6 

OPERATIONAL HIGHLIGHTS

Underlying earnings before taxAegon’s underlying earnings
before tax increased 1% compared to the first quarter of 2012 to EUR 445
million in the first quarter of 2013. Business growth and the positive
effects of favorable equity markets were offset by the loss of earnings
due to the sale of the company’s interests in partnerships in Spain
(EUR 14 million) and higher sales and employee performance related
expenses (EUR 13 million).

Underlying earnings from the
Americas
   , the

See America.
 increased to EUR 312 million.
The 3% increase compared to the first quarter of 2012 is mainly the
result of growth in Pensions and Life & Protection partly offset by
lower
fixed annuity

 earnings due to lower account balances and decreased
spreads, as well as higher sales and employee performance related
expenses.

In the Netherlands, underlying earnings increased 5% to EUR 85
million as higher earnings in Life & Savings and Non-life were
partly offset by lower Pension earnings due to lower investment income
as a result of the
persisting
  
intr.v. per·sist·ed, per·sist·ing, per·sists
1. To be obstinately repetitious, insistent, or tenacious.

2.
 low interest rate environment.

Underlying earnings from Aegon’s operations in the United
Kingdom of EUR 24 million were 20% lower compared to the first quarter
of 2012. Earnings were negatively impacted by adverse persistency (EUR 8
million) following the implementation of the Retail Distribution Review.
It is expected that the effects of adverse persistency will continue at
least into the second quarter of 2013. These effects were partly offset
by favorable equity market movements.

Underlying earnings from New Markets decreased 30% to EUR 62
million. Higher earnings from Asia were more than offset by lower
underlying earnings from Aegon Asset Management, Central &
Eastern
Europe

The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991.
 and Spain. Results in Spain were impacted by EUR 14 million as a
result of the divestments of the joint venture with Banca Civica and the
partnership with CAM, while earnings from
CEE
  
n.
The letter c.
 included a charge of EUR 3
million related to the recently introduced insurance tax.

Total holding costs decreased 40% to EUR 38 million, mainly the
result of lower net interest expenses following debt
redemption

.

Net incomeNet income decreased to EUR 204 million as higher
underlying earnings, realized gains on investments and lower impairments
were more than offset by losses from fair value items.

Fair value itemsThe results from fair value items amounted to a loss
of EUR 286 million. The loss was mainly due to macro equity hedging
programs in the Americas which were unfavorably impacted by strong
increases in equity markets during the first quarter. Aegon increased
the macro hedge program during the fourth quarter of 2012 to also
include the economic impact from future fee revenue related to variable
annuity account balances. As the macro hedges are being carried at fair
value versus the fee revenue emerging over time, the strong equity
performance in the first quarter created an unusually large loss that
will be offset over time as the fees emerge into underlying earnings.
The hedging programs have been designed to
mitigate

v.
To moderate in force or intensity.


miti·gation n.
 the effect of
substantial movements in equity markets on Aegon’s capital
position.

Realized gains on investmentsIn the first quarter, realized gains on
investments amounted to EUR 113 million and were the result of normal
trading activity in the investment portfolio and asset liability
management.

Impairment

 chargesImpairments improved significantly compared to
last year and amounted to EUR 17 million. They were largely related to
residential mortgage loans in the Netherlands and
Hungary
 Hung. Magyarország, officially Republic of Hungary, republic (2005 est. pop. 10,007,000), 35,919 sq mi (93,030 sq km), central Europe.
 as a result of
an increase
in arrears

. In the Americas, there were net recoveries as
impairments primarily linked to mortgage loans and mortgage related
securities were fully offset by recoveries.

Other chargesOther charges amounted to EUR 4 million and related
mostly to a charge of EUR 81 million related to increased
accruals

 in
connection with the company’s use of the U.S. Social Security
Administration’s death master-file, offset by a gain of EUR 85
million related to the
recapture
 n. in income tax, the requirement that the taxpayer pay the amount of tax savings from past years due to accelerated depreciation or deferred capital gains upon sale of property. (See: income tax)


RECAPTURE, war.
 of certain
reinsurance

 contracts in the
United States.

Run-off businessesThe 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. The buyer of the divested life reinsurance business transferred
client contracts onto its own book faster than originally anticipated
resulting in an
acceleration
 change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body.
 of the amortization of the intangible asset
during the quarter (EUR 19 million).

Income taxIncome tax amounted to EUR 33 million in the first
quarter. The effective tax rate on underlying earnings for the first
quarter of 2013 was 27%. The effective tax rate on total income was 14%
driven by the combined effects of negative fair value items taxed at

nominal

 rates, tax credits and tax exempt items.

Return on equityReturn on equity decreased to 6.3% for the first
quarter of 2013 as high net income in previous periods resulted in
higher average shareholders’ equity excluding
revaluation

 reserves
and
defined benefit plan

 remeasurements. Return on equity for
Aegon’s ongoing businesses, excluding the run-off businesses,
amounted to 7.0% over the same period.

Operating expensesIn the first quarter,
operating expenses

 increased
5% to EUR 804 million mainly as a result of higher sales and employee
performance related expenses as well as favorable timing of expenses in
the comparable quarter last year.

SalesCompared to the first quarter of 2012, Aegon’s total sales
decreased 1% to EUR 1.7 billion. New life sales grew strongly, driven
mainly by higher pension production as a result of strong market
propositions in the Netherlands and the United Kingdom. In the Americas,
new life sales declined primarily driven by lower universal life sales
due to product withdrawals and product redesign, resulting from the
focus on value creation. Gross deposits remained strong, with particular
success in both the variable annuity and retail mutual fund businesses
in the United States. Net deposits, excluding run-off businesses,
amounted to EUR 1.7 billion and were primarily driven by variable
annuity and retirement deposits in the United States.

Market consistent value of new businessThe market consistent value
of new business increased strongly to EUR 232 million mainly as a result
of product repricing and redesign in the United States and a higher
contribution from mortgage and pension production in the
Netherlands.

Revenue-generating investmentsRevenue-generating investments
increased 4% compared to year-end 2012 to EUR 476 billion at March 31,
2013, as a result of continued net inflows and favorable equity market
movements.

Capital managementShareholders’ equity decreased EUR 1.1
billion from year-end 2012 to EUR 23.6 billion at March 31, 2013, mainly
as a result of accounting changes (
IAS

 19). The revaluation reserves
decreased slightly during the first quarter to EUR 5.7 billion, mainly a
reflection of slightly higher interest rates. Aegon’s core capital,
excluding revaluation reserves and defined benefit plan remeasurements,
amounted to EUR 18.9 billion, equivalent to 76.3%[sup.[] [sup.6] [sup.]]
of the company’s total capital base at March 31, 2013. This is a
slight decline from year-end 2012, mainly as a result of a decline in
holding excess capital. In the first quarter, excess capital in the
holding decreased to EUR 1.8 billion primarily the result of interest
payments and operating expenses.

Shareholders’ equity per common share, excluding preference
capital, revaluation reserves and defined benefit plan remeasurements,
amounted to EUR 8.10 at March 31, 2013.

At March 31, 2013, Aegon’s Insurance Group
Directive

 (IGD)
ratio remained relatively stable at 224%, including a 13% negative
impact from IAS 19. Measured on a local
solvency
 n.
 basis, the Risk Based
Capital (RBC) ratio in the United States decreased to ~485% as net
income for the quarter was offset by higher
capital requirements

. The
IGD ratio in the Netherlands increased to ~265%, as capital benefits
were partly offset by the impact of IAS 19 and changes in the
revaluation reserves. The
Pillar
 freestanding columnar supporting member. It is a general term, little used as an exact architectural definition except as applied to an upright support in the medieval styles, consisting of an assemblage of juxtaposed shafts and moldings; unlike the column,
 I ratio in the United Kingdom was ~120%
at the end of the first quarter of 2013.

Cash flowsOperational free cash flows of EUR 553 million were
particularly strong during the quarter. Excluding exceptional items of
EUR 233 million and market impacts, operational free cash flows amounted
to EUR 327 million. The exceptional items were primarily related to the
effects of model refinements and methodology changes in the Netherlands
and lower cash flow testing reserves in the United States. The impact of
market movements was
negligible

 during the first quarter. Operational
free cash flows represent the distributable earnings generated by the
business units.

Mandatory changes in accounting policies

On
January
 see month.
 1, 2013, the following new, mandatory accounting policies
became effective:

*
IFRS

IFRS Inter Frame Relay Service
IFRS Indiana Facilities Registry System
 10 changes the definition of control and IFRS 11 changes the
definition with respect to investments and jointly-controlled entities.
As a result, Aegon has
consolidated
  
v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates

v.tr.
1. To unite into one system or whole; combine:
 one mortgage
securitization

 vehicle,
revisited consolidation of several
investment funds

 and uses the equity
method instead of using
proportionate
  
adj.
Being in due proportion; proportional.

tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates
To make proportionate.
 consolidation for its joint
ventures.

* IAS 19 changes the accounting for assets and liabilities
relating
to

 relate prep

 relate prep → ,  
 employee benefits. Upon transition to the revised IAS 19, Aegon
recognizes all
actuarial
  
n. pl. ac·tu·ar·ies
A statistician who computes insurance risks and premiums.


[Latin
 gains and losses as they occur and therefore no
longer applies the corridor approach. Furthermore, past service costs
are recognized if the benefits have
vested
 adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal’s pension rights are now vested. (See: vest, vested remainder)
 following the introduction
of, or changes to, a pension plan.

* IFRS 13 establishes a single source of guidance under IFRS for all
fair value measurements. It does not change when an entity is required
to use fair value, but rather provides guidance on how to measure fair
value under IFRS. The application of IFRS 13 has not impacted
Aegon’s fair value measurements.

Aegon has applied these new standards
retrospectively
  
adj.
1. Looking back on, contemplating, or directed to the past.

2. Looking or directed backward.

3. Applying to or influencing the past; retroactive.

4.
 (except for
IFRS 13) and therefore restated its 2012 financial position.
Shareholders’ equity was negatively impacted by EUR 1.1 billion and
underlying earnings before tax were positively impacted by EUR 64
million. More details on these changes and a summary of their effects on
the financial position of the company are described in Aegon’s

condensed
  
v. con·densed, con·dens·ing, con·dens·es

v.tr.
1. To reduce the volume or compass of.

2. To make more concise; abridge or shorten.

3. Physics
a.
 consolidated interim financial statements for the first
quarter of 2013.

APPENDIX I – Americas – The Netherlands – United Kingdom – New
Markets

     Financial overview, Q1 2013 geographically [c)]
                                                                             Holding,
                                                                              other
                                                     The  United     New
activities &
    EUR millions                    Americas Netherlands Kingdom Markets
eliminations Total
    Underlying earnings before tax by line of business
    Life                               125          67      20      28
-   240
    Individual savings
     and retirement products           124           -       -      (4)
-   120
    Pensions                            62          13       6       1
-    82
    Non-life                             -          (1)      -       9
-     8
    Distribution                         -           6      (2)      -
-     4
    Asset Management                     -           -       -      23
-    23
    Other                                -           -       -       -
(38)  (38)
    Share in underlying earnings
     before tax of associates            1           -       -       5
-     6
    Underlying earnings before tax     312          85      24      62
(38)  445
    Fair value items                  (232)        (73)     (3)     (3)
25  (286)
    Realized gains / (losses)
     on investments                     47          63       1       2
-   113
    Impairment charges                   1          (8)      -     (10)
-   (17)
    Other income / (charges)            (5)          -       5      (4)
-    (4)
    Run-off businesses                 (14)          -       -       -
-   (14)
    Income before tax                  109          67      27      47
(13)  237
    Income tax                           -          (8)     (9)    (17)
1   (33)
    Net income                         109          59      18      30
(12)  204
    Net underlying earnings            223          65      21      39
(25)  323
    Employee numbers
                                                                       Mar. 31,    Dec. 31,
                                                                           2013        2012
    Employees excluding agents, joint ventures and associates
20,889      20,902
    Agents                                                                2,903       2,748
    Total number of employees excluding joint ventures & associates
23,792      23,650
    Aegon's share of employees (including agents) in joint ventures
766         757
    Aegon's share of employees (including agents) in associates
2,051       2,443
    Total                                                                26,609      26,850 

Currencies

Income statement items: average rate 1 EUR =
USD

 1.3195 (2012: USD
1.3101). Income statement items: average rate 1 EUR =
GBP

 0.8506 (2012:
GBP 0.8335). Balance sheet items: closing rate 1 EUR = USD 1.2841 (2012:
USD 1.3317; year-end 2012: USD 1.3184). Balance sheet items: closing
rate 1 EUR = GBP 0.8456 (2012: GBP 0.8335; year-end 2012: GBP
0.8111).

AMERICAS

* Underlying earnings before tax increase 4% to USD 413 million

* Net income declines to USD 145 million, due to lower results from
fair value items

* Sales of life insurance down 8% to USD 145 million, driven by
lower universal life sales as a result of the focus on profitability

* Gross deposits of USD 9.2 billion reflect strong growth in VA and
mutual funds

Underlying earnings before taxUnderlying earnings from the Americas
in the first quarter 2013 amounted to USD 413 million. Growth in both
the Pension and Life & Protection businesses was partly offset by
lower fixed annuity earnings due to lower account balances and decreased
spreads, as well as USD 17 million higher sales and employee performance
related expenses.

* Life & Protection earnings increased by 7% to USD 160 million,
resulting from growth of the business, despite adverse
underwriting

 experience of USD 20 million in the quarter.

* Earnings from Individual Savings & Retirement amounted to USD
163 million, down 2% compared to the first quarter of 2012.
Variable
annuities

 earnings increased to USD 102 million primarily as a result of
higher fee income from higher account balances. Fixed annuity earnings
declined to USD 56 million, driven by the reduction of the portfolio as
the business has been de-emphasized and lower spreads. Earnings from
retail mutual funds were level at USD 5 million, as the positive impact
of higher account balances was offset by increased sales related
expenses on strong sales in the quarter.

* Employer Solutions & Pensions earnings increased 14% to USD 82
million, resulting from the positive effect of higher average account
balances, partly offset by higher hedging costs for stable value
solutions.

* Earnings from
Canada
 , independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of
 declined to USD 6 million, driven by a
one-time charge on
intangibles
, or one that is lacking physical existence, such as good will.
 of USD 4 million.

Net incomeNet income from Aegon’s businesses in the Americas
declined to USD 145 million in the first quarter. Higher underlying
earnings and realized gains as well as lower impairments were more than
offset by a sharp decline in the results from fair value items.

Results from fair value items amounted to USD (307) million for the
quarter. The loss was mainly due to the equity hedging program which was
unfavorably impacted by strong increases in equity markets during the
first quarter. Aegon increased the macro hedge program during the fourth
quarter of 2012 to also include the economic impact from future fee
revenue directly related to variable annuity account balances. Due to
the macro hedges being carried at fair value versus the fee revenue
emerging over time, the strong equity performance in the first quarter
created an unusually large loss that will be offset over time as the
fees emerge into underlying earnings. The hedging programs have been
designed to mitigate the effect of substantial movement in equity
markets on Aegon’s capital position.

Alternative asset performance was USD 30 million above the
expected
return

, driven by a significant change in the valuation of a fund
containing mineral rights.

Gains on investments of USD 62 million were realized as a result of
normal trading activity. Impairments remained low and were more than
offset by recoveries, resulting in net recoveries of USD 1 million for
the quarter. Other charges were USD 6 million and included a charge of
USD 104 million related to increased accruals in connection with the
company’s use of the U.S. Social Security Administration’s
death master-file, offset by a gain of USD 112 million related to the
recapture of certain reinsurance contracts.

The results of run-off businesses amounted to a loss of USD 18
million driven by the acceleration of the amortization of the pre-paid
cost of the reinsurance asset, as the buyer of the divested life
reinsurance assets transferred client contracts onto its own book faster
than originally anticipated.

Return on capitalIn the first quarter 2013, the return on average
capital, excluding revaluation reserves and defined benefit plan
remeasurements, invested in Aegon’s business in the Americas
amounted to 6.1%. Excluding the capital allocated to the run-off
businesses, the return on capital would amount to 7.1%. Return on
capital of Aegon’s businesses excludes the benefit of leverage at
the holding.

Operating expensesOperating expenses increased 6% to USD 491
million, mainly due to USD 17 million of higher sales and employee
performance related expenses.

SalesNew life sales declined 8% to USD 145 million, primarily driven
by lower universal life sales due to product withdrawals and product
redesign, resulting from the focus on value creation. New premium
production for accident & health insurance increased 14% to USD 264
million, driven by strong sales of the MediCare part D prescription plan
product, which was introduced in 2012.

Gross deposits amounted to USD 9.2 billion. Gross deposits in
variable annuities and retail mutual funds were up significantly
compared to the first quarter of 2012. Variable annuities gross deposits
increased 34% mainly due to continued focus on key distribution
partners. New variable annuity distribution arrangements through
alternative channels continue to be added, including a recent private
label product launch with ING U.S. Retirement plan deposits were
slightly lower than in the comparable quarter of 2012, but continued to
benefit from the focus on retirement readiness by increasing
participation and contributions through the use of auto enrollment and
auto
escalation
  
v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates

v.tr.
To increase, enlarge, or intensify:

v.intr.
. Gross deposits in stable value solutions were down
sharply as stable value assets are targeted to be maintained at current
levels.

Net deposits, excluding run-off businesses, grew strongly to USD 1.7
billion in the first quarter. Aegon’s core growth areas of variable
annuities and pensions recorded net inflows of USD 0.7 billion and USD
1.4 billion, respectively. Retail mutual fund net flows improved to USD
0.2 billion driven by strong sales growth and lower outflow from equity
funds. Net deposits in stable value solutions remained negative as
stable value assets are targeted to be maintained at current levels.
Aegon is de-emphasizing sales of
fixed annuities

 as part of a strategic

repositioning
 Laparoscopic surgery The changing of a Pt’s position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf
Laparoscopic surgery.
 and therefore incurred net outflows of USD 0.6 billion in
the first quarter.

Market consistent value of new businessThe market consistent value
of new business doubled to USD 125 million in the first quarter 2013,
driven by improvements in variable annuities and Life & Protection.
Variable annuity market consistent value of new business was driven by
increased sales and higher interest rates during the first quarter. The
improvement in life insurance is the result of actively repricing and

withdrawing
 Child psychiatry Behavior characterized by ↓ interest in or contact with other people; WBs include ↓ speech, regression to babyhood, exhibition of many fears, depression, refusing contact with other people
 certain products and slowing down sales of unprofitable
business in order to meet the return targets. The introduction of a
real-time pricing feature on universal life policies reflects a unique
capability in the US life insurance market. The feature allows for
pricing to be adjusted on a weekly basis in line with interest rate
movements and therefore to deliver profitable new business.

Revenue-generating investmentsRevenue-generating investments
amounted to USD 343 billion at the end of the first quarter, up 3%
compared with the end of 2012. Investments for account of policyholders
and off balance sheet investments for third parties were up strongly by
6% and 5%, respectively, driven by net inflows and higher equity
markets. This was partly offset by a decrease in general account assets
as a result of outflows from the run-off businesses and fixed
annuities.

     Americas [c)]
    USD millions                                    Notes  Q1 2013  Q4
2012 %   Q1 2012  %
    Underlying earnings before tax by line of business
    Life and protection                                       160
188 (15)     149   7
    Fixed annuities                                            56
63 (11)      63 (11)
    Variable annuities                                        102
112  (9)      98   4
    Retail mutual funds                                         5
8 (38)       5   -
    Individual savings and retirement products                163
183 (11)     166  (2)
    Employer solutions & pensions                              82
73  12       72  14
    Canada                                                      6
9 (33)       7 (14)
    Latin America                                               2
4 (50)       3 (33)
    Underlying earnings before tax                            413
457 (10)     397   4
    Fair value items                                         (307)
(22)  -       83   -
    Realized gains / (losses) on investments                   62
57   9       12   -
    Impairment charges                                          1
(40)  -      (39)  -
    Other income / (charges)                                   (6)
(34) 82       (1)  -
    Run- off businesses                                       (18)
(17) (6)      (3)  -
    Income before tax                                         145
401 (64)     449 (68)
    Income tax                                                  -
(83)  -      (74)  -
    Net income                                                145
318 (54)     375 (61)
    Net underlying earnings                                   295
343 (14)     282   5
    Commissions and expenses                                1,062
1,090  (3)   1,041   2
    of which operating expenses                               491
489   -      464   6
    New life sales                                 12
    Life single premiums                                       44
93 (53)      65 (32)
    Life recurring premiums annualized                        141
181 (22)     150  (6)
    Total recurring plus 1/10 single                          145
191 (24)     157  (8)
    Life & protection                                         119
163 (27)     133 (11)
    Canada                                                     16
16   -       14  14
    Latin America                                              10
12 (17)      10   -
    Total recurring plus 1/10 single                          145
191 (24)     157  (8)
    New premium production accident and health insurance      264
230  15      231  14
    Gross deposits (on and off balance)
     by line of business                           12
    Life & protection                                           2
4 (50)       3 (33)
    Fixed annuities                                           189
145  30       91 108
    Variable annuities                                      1,622
1,441  13    1,214  34
    Retail mutual funds                                     1,187
998  19      754  57
    Individual savings & retirement products                2,998
2,584  16    2,059  46
    Employer solutions & pensions                           6,168
5,948   4    7,544 (18)
    Canada                                                     47
37  27       74 (36)
    Latin America                                               6
6   -        4  50
    Total gross deposits                                    9,221
8,579   7    9,684  (5)
    Net deposits (on and off balance)
     by line of business                          12
    Life & protection                                         (10)
(9)(11)     (10)  -
    Fixed annuities                                          (553)
(732) 24     (628) 12
    Variable annuities                                        699
444  57      363  93
    Retail mutual funds                                       243
112 117      (31)  -
    Individual savings & retirement products                  389
(176)  -     (296)  -
    Employer solutions & pensions                           1,841
1,317  40    1,797   2
    Canada                                                    (94)
(114) 18     (105) 10
    Latin America                                               3
5 (40)       4 (25)
    Total net deposits excluding run-off businesses         2,129
1,023 108    1,390  53
    Run-off businesses                                     (1,416)
(780)(82)  (1,519)  7
    Total net deposits                                        713
243 193     (129)  -
    Revenue-generating investments
                                                                     Mar.    Dec.
                                                                      31,     31,
                                                                     2013    2012    %
    Revenue-generating investments (total)
343,022 333,759    3
    Investments general account
111,478 113,988  (2)
    Investments for account of policyholders
91,886  86,975    6
    Off balance sheet investments third parties
139,658 132,796    5 

THE NETHERLANDS

* Underlying earnings before tax up 5% to EUR 85 million driven by
improvements in Life & Savings and Non-life

* Decline in net income to EUR 59 million, due to lower contribution
from fair value items

* New life sales increase 25% to EUR 40 million due to strong
pension sales

Underlying earnings before taxUnderlying earnings from Aegon’s
operations in the Netherlands increased to EUR 85 million as higher
earnings in Life & Savings and Non-life more than offset lower
earnings in Pensions.

* Earnings from Aegon’s Life & Savings operations in the
Netherlands increased to EUR 67 million, up 18% compared to the first
quarter of 2012. The positive effect of lower funding costs was partly
offset by a EUR 7 million impact of reduced policy charges on
unit-linked products as part of the acceleration of product improvements
to unit-linked insurance policies.

* Earnings from the Pension business declined to EUR 13 million,
mainly due to lower investment income as a result of the persistent low
interest rate environment.

* Non-life recorded a loss of EUR 1 million, an improvement compared
to the first quarter of 2012. The profitability of disability products
declined slightly driven by an increase in new claims, resulting from
the weak economic environment. This was more than offset by improvements
in profitability of general insurance products, as a result of better
claims experience.

* The distribution businesses recorded a profit of EUR 6 million, a
decline of 14% compared to the first quarter of 2012. Realized cost
savings were more than offset by pressure on fee income.

Net incomeNet income from Aegon’s businesses in the Netherlands
declined to EUR 59 million. Realized gains on investments totaled EUR 63
million and were the result of trading activity and asset liability
management in the portfolio. Results on fair value items amounted to a
loss of EUR 73 million, mainly driven by the effects of movements in
interest rates, yield curves and credit spreads on fair value
guarantees. Impairments of EUR 8 million were driven by increased

arrears

 in the residential mortgage portfolio.

Return on capitalThe return on average capital, excluding
revaluation reserves and defined benefit plan remeasurements, invested
in Aegon’s businesses in the Netherlands increased to 6.7%. Return
on capital of Aegon’s businesses excludes the benefit of leverage
at the holding.

Operating expensesOperating expenses declined 3% to EUR 179 million.
This was mainly driven by realized cost savings, partly offset by
investments in new distribution capabilities.

SalesNew life sales increased 25% in the first quarter to EUR 40
million. Pension sales increased strongly to EUR 26 million, as a result
of a strong market proposition. Individual life sales declined to EUR 14
million, primarily driven by a shrinking Dutch life insurance market as
a result of the market wide switch to bank savings.

Production of mortgages in the first quarter of 2013 amounted to EUR
749 million, above the level achieved in the first quarter of 2012, due
to increased customer activity ahead of the announced fiscal regulation
changes effective April 1, 2013.

Premium production for accident & health amounted to EUR 13
million, up 44% compared to the first quarter of 2012. General insurance
production amounted to EUR 8 million, down 11% compared to the first
quarter of 2012.

Gross deposits decreased to EUR 404 million, as a result of the
highly competitive environment in the Dutch savings market.

Market consistent value of new businessThe market consistent value
of new business in the Netherlands strongly improved compared to the
first quarter of 2012 and amounted to EUR 95 million. The increase was
driven by higher contributions from mortgages as funding costs declined
and higher pension sales.

Revenue-generating investmentsRevenue-generating investments
amounted to EUR 70 billion, slightly higher compared with the previous
quarter.

     The Netherlands
    EUR millions                                 Notes Q1 2013 Q4 2012
% Q1 2012     %
    Underlying earnings before tax by line of business
    Life and Savings                                        67      79
(15)     57    18
    Pensions                                                13       5
160      21   (38)
    Non-life                                                (1)     (4)
75      (4)   75
    Distribution                                             6       5
20       7   (14)
    Underlying earnings before tax                          85      85
-      81     5
    Fair value items                                       (73)      8
-      34     -
    Realized gains / (losses) on investments                63      70
(10)     34    85
    Impairment charges                                      (8)    (10)
20      (3) (167)
    Other income / (charges)                                 -      (7)
-      (3)    -
    Income before tax                                       67     146
(54)    143   (53)
    Income tax                                              (8)    (28)
71      (6)  (33)
    Net income                                              59     118
(50)    137   (57)
    Net underlying earnings                                 65      69
(6)      64     2
    Commissions and expenses                               252     255
(1)     267    (6)
    of which operating expenses                            179     194
(8)     184    (3)
    New life sales
    Life single premiums                                   346   1,024
(66)     245    41
    Life recurring premiums annualized                       5      64
(92)       7   (29)
    Total recurring plus 1/10 single                        40     166
(76)      32    25
    Life and Savings                                        14       9
56       18   (22)
    Pensions                                                26     157
(83)      14    86
    Total recurring plus 1/10 single                        40     166
(76)      32    25
    New premium production accident and health insurance    13       6
117        9    44
    New premium production general insurance                 8       7
14        9   (11)
    Gross deposits (on and off balance) by line of business
    Life and Savings                                       404     282
43      560   (28)
    Total gross deposits                                   404     282
43      560   (28)
    Net deposits (on and off balance) by line of business
    Life and Savings                                      (134)   (248)
46     (185)   28
    Total net deposits                                    (134)   (248)
46     (185)   28
    Revenue-generating investments
                                                                     Mar.    Dec.
                                                                      31,     31,
                                                                     2013    2012    %
    Revenue-generating investments (total)
69,962  69,205    1
    Investments general account
43,839  43,059    2
    Investments for account of policyholders
25,092  25,094    -
    Off balance sheet investments third parties
1,031   1,052  (2) 

UNITED KINGDOM

* Underlying earnings before tax decline to GBP 20 million due to
adverse persistency

* Net income declines to GBP 15 million due to non-recurrence of tax
benefits

* New life sales up 37% to GBP 244 million, driven by strong
platform, auto enrollment and group pensions sales

* Distribution deal to provide pension element of Barclay’s
Workplace Savings offering

* Over 500 advisors are now using the Aegon Retirement Choices
platform

Underlying earnings before taxUnderlying earnings before tax from
Aegon’s operations in the United Kingdom declined to GBP 20 million
in the first quarter, driven by adverse persistency in pensions and a
favorable timing of expenses in the first quarter of 2012.

* Earnings from Life increased to GBP 17 million, driven by improved
claims experience in individual protection.

* Earnings from Pensions declined to GBP 5 million. The negative
effect from adverse persistency, which the UK insurance industry is
experiencing as a result of the implementation of the Retail
Distribution Review (
RDR

RDR Remote Data Recovery
RDR Registered Diplomate Reporter
), amounted to GBP 7 million in the first
quarter. This adverse effect is expected to continue at least into the
second quarter of 2013. This was partly offset by the favorable impact
from higher equity markets.

Net incomeNet income declined 62% to GBP 15 million driven by lower
underlying earnings and the absence of a non-recurring tax benefit as
the result of a reduction of the corporate tax rate in the first quarter
of 2012. Results on fair value items amounted to a loss of GBP 2
million, mainly driven by a loss on hedges as a result of increased
equity markets. There were no impairments during the quarter.

Return on capitalThe return on average capital, excluding
revaluation reserves and defined benefit plan remeasurements, invested
in Aegon’s businesses in the United Kingdom decreased to 2.8% in
the first quarter of 2013, primarily driven by lower net underlying
earnings, which resulted from the absence of a non-recurring tax benefit
in the first quarter of 2012.

Operating expensesOperating expenses for the first quarter of 2013
increased 13% to GBP 69 million, as the first quarter of 2012 benefited
from an exceptionally low level of expenses.

SalesNew life sales were up 37% to GBP 244 million compared to the
first quarter of 2012, reflecting the launch of income
drawdown

 products
on the platform, the benefit of auto enrollment and strong sales in
group pensions. Aegon Retirement Choices was awarded the “most
innovative platform” and “best corporate platform” by
Platforum, an independent expert. Platform sales accelerated during the
first quarter of 2013, as more advisors were added to the platform.

Gross deposits, mainly driven by savings on the platform, continued
to grow as the platform proposition gained momentum in the market and
amounted to GBP 42 million. During the first quarter, Aegon also
broadened its distribution network for Workplace Savings by signing a
corporate distribution deal with Barclays. Distribution partnerships
such as this will prove to be key in this rapidly expanding market.
Aegon also launched its auto enrollment investment proposition offering
employees straightforward solutions and a single fund right through to
retirement.

Market consistent value of new businessThe market consistent value
of new business in the UK amounted to GBP 18 million, as lower pension
margins more than offset higher sales volumes.

Revenue-generating investmentsRevenue-generating investments
increased to GBP 58 billion, up 6% compared with the end of 2012,
primarily the result of higher equity markets.

     United Kingdom
    GBP millions                                 Notes   Q1 2013 Q4 2012
% Q1 2012    %
    Underlying earnings before tax by line of business
    Life                                                    17      17
-      15    13
    Pensions                                                 5       5
-      11   (55)
    Distribution                                            (2)      -
-      (1) (100)
    Underlying earnings before tax                          20      22
(9)     25   (20)
    Fair value items                                        (2)     (9)
78      (2)    -
    Realized gains / (losses) on investments                 1      28
(96)      -     -
    Other income / (charges)                         7       4       1
-       5   (20)
    Income before tax                                       23      42
(45)     28   (18)
    Income tax attributable to policyholder return          (6)     (5)
(20)     (5)  (20)
    Income before income tax on shareholders return         17      37
(54)     23   (26)
    Income tax on shareholders return                       (2)     (6)
67      16     -
    Net income                                              15      31
(52)     39   (62)
    Net underlying earnings                                 18      20
(10)      40   (55)
    Commissions and expenses                               151     158
(4)     141     7
    of which operating expenses                             69      68
1       61    13
    New life sales                                   8
    Life single premiums                                   820     694
18     600    37
    Life recurring premiums annualized                     162     178
(9)    118    37
    Total recurring plus 1/10 single                       244     247
(1)    178    37
    Life                                                    15      19
(21)     17   (12)
    Pensions                                               229     228
-     161    42
    Total recurring plus 1/10 single                       244     247
(1)    178    37
    Gross deposits (on and off balance) by line of business
    Variable annuities                                       2       4
(50)      7   (71)
    Pensions                                                40       8
-       -     -
    Total gross deposits                                    42      12
-       7     -
    Net deposits (on and off balance) by line of business
    Variable annuities                                      (5)     (5)
-      (1)    -
    Pensions                                                39       8
-       -     -
    Total net deposits                                      34       3
-     (1)     -
    Revenue-generating investments
                                                                     Mar.    Dec.
                                                                      31,     31,
                                                                     2013    2012    %
    Revenue-generating investments (total)
57,543  54,533    6
    Investments general account
9,303   9,196    1
    Investments for account of policyholders
48,186  45,329    6
    Off balance sheet investments third parties
54       8    - 

NEW MARKETS

* Underlying earnings before tax decline 30% to EUR 62 million
mainly driven by divestments in Spain

* Net income down to EUR 30 million

* New life sales amount to EUR 63 million as growth in CEE and Asia
was more than offset by the effect of divestments in Spain

Underlying earnings before taxIn New Markets, Aegon’s
underlying earnings before tax declined 30% to EUR 62 million, mainly
due to the divestments in Spain. In addition, higher earnings from Asia
were more than offset by lower earnings from Central & Eastern
Europe and Aegon Asset Management.

* Earnings from Central & Eastern Europe declined 30% to EUR 16
million, driven by lower investment income, the introduction of
insurance tax in Hungary for EUR 3 million and a one-time provision of
EUR 2 million in
Poland
 Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania,
.

* Results from Aegon’s operations in Asia increased to EUR 11
million as a result of cost savings, favorable claim experience and
growth of the business.

* Earnings from Spain & France decreased 56% to EUR 11 million
due to the
divestment
 to strip one’s investment from an entity.
 of the joint ventures with Civica and CAM. The
comparable quarter of 2012 included underlying earnings of EUR 9 million
from CAM, while the joint venture with Civica contributed EUR 4 million.
The earnings contribution from partner La Mondiale in France remained
stable compared to the same quarter last year and amounted to EUR 5
million.

* Results from Variable Annuities
Europe
 , 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000).
 amounted to EUR 1 million,
which included the result of project spend to position the company for
future growth.

* Earnings from Aegon Asset Management declined 21% to EUR 23
million, as the positive impact of higher asset balances was more than
offset by the loss of earnings from the sale of Prisma and investments
in third party product offering.

Net incomeNet income from Aegon’s operations in New Markets
declined to EUR 30 million, driven by lower underlying earnings.
Impairment charges increased to EUR 10 million due to higher mortgage
related impairments in Hungary.

Return on capitalThe return on average capital, excluding
revaluation reserves, invested in Aegon’s businesses in New Markets
declined to 5.7%, mainly the result of lower net underlying earnings.
Return on capital of Aegon’s businesses excludes the benefit of
leverage at the holding.

Operating expensesOperating expenses increased 10% to EUR 157
million in the first quarter. This was the result of higher costs in
Asia and Variable Annuities Europe driven by investments to support
future growth and the introduction of insurance tax in Hungary.

SalesNew life sales declined 21% to EUR 63 million.

* In Central & Eastern Europe, new life sales increased 4% to
EUR 28 million. Sales growth in Turkey and
Slovakia
  or the  Slovak Slovensko , republic (2005 est. pop.
 due to improved
distribution and in the
Czech Republic
 Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north.
 due to product innovation was
partly offset by lower sales in Poland due to product redesign.

* In Asia, new life sales increased 20% to EUR 18 million. This was
mainly driven by the launch of a new universal life product in the first
quarter.

* New life sales in Spain & France declined to EUR 17 million
driven by the divestment of partnerships in Spain.

New premium production from Aegon’s accident & health
insurance business in Central & Eastern Europe and Asia improved
significantly to EUR 12 million, mainly driven by Aegon’s direct
marketing unit in Asia. New premium production from Aegon’s general
insurance business in Central & Eastern Europe amounted to EUR 6
million.

Gross deposits in New Markets amounted to EUR 2.6 billion, down 17%
compared to the first quarter of 2012. Gross deposits in Aegon Asset
Management declined to EUR 2.3 billion. Retail sales in the United
Kingdom remained strong, but institutional sales in the United States
and the Netherlands were lower than in the very strong first quarter of
2012. In Central & Eastern Europe gross deposits declined following
pension legislation changes in Slovakia and Poland.

Market consistent value of new businessThe market consistent value
of new business in New Markets declined 13% to EUR 21 million. Asia
showed a strong improvement compared to the first quarter of 2012,
driven by higher margins and increased sales. This was more than offset
by lower production in Poland and the divestments of Civica, CAM and
Unnim in Spain.

Revenue-generating investmentsRevenue-generating investments
increased 2% compared with the end of 2012 to EUR 70 billion, mainly
driven by positive market effects.

     New Markets [c)]
    EUR millions                                 Notes Q1 2013 Q4 2012
%  Q1 2012   %
    Underlying earnings before tax
    Central Eastern Europe                               16      25
(36)    23   (30)
    Asia                                                 11      (8)
-      9    22
    Spain & France                                       11      11
-     25   (56)
    Variable Annuities Europe                             1       -
-      2   (50)
    Aegon Asset Management                               23      24
(4)    29   (21)
    Underlying earnings before tax                       62      52
19     88   (30)
    Fair value items                                     (3)      5
-      7     -
    Realized gains / (losses) on investments              2       -
-      2     -
    Impairment charges                                  (10)    (17)
41     (4) (150)
    Other income / (charges)                             (4)    139
-    (18)   78
    Income before tax                                    47     179
(74)    75   (37)
    Income tax                                          (17)    (53)
68    (27)   37
    Net income                                           30     126
(76)    48   (38)
    Net underlying earnings                              39      36
8     59   (34)
    Commissions and expenses                            228     216
6    208    10
    of which operating expenses                         157     153
3    143    10
    New life sales                                12
    Life single premiums                                147     103
43    146     1
    Life recurring premiums annualized                   48      47
2     66   (27)
    Total recurring plus 1/10 single                     63      57
11     80   (21)
    Life                                                 62      57
9     75   (17)
    Associates                                            1       -
-      5   (80)
    Total recurring plus 1/10 single                     63      57
11     80   (21)
    Central Eastern Europe                               28      32
(13)    27     4
    Asia                                                 18      11
64     15    20
    Spain & France                                       17      14
21     38   (55)
    Total recurring plus 1/10 single                     63      57
11     80   (21)
    New premium production accident and health insurance 12      12
-     10    20
    New premium production general insurance              6       9
(33)     5    20
    Gross deposits (on and off balance)           12
    Central Eastern Europe                               57      64
(11)   116   (51)
    Asia                                                 95      43
121     34   179
    Spain & France                                        7      14
(50)    10   (30)
    Variable Annuities Europe                           122     118
3    120     2
    Aegon Asset Management                            2,282   2,095
9  2,803   (19)
    Total gross deposits                              2,563   2,334
10  3,083   (17)
    Net deposits (on and off balance)             12
    Central Eastern Europe                              (35)     15
-     42     -
    Asia                                                 70      41
71     31   126
    Spain & France                                       (3)      2
-    (26)   88
    Variable Annuities Europe                           (14)      2
-     28     -
    Aegon Asset Management                              127     386
(67) 1,289   (90)
    Total net deposits                                  145     446
(67) 1,364   (89)
    Revenue-generating investments
                                                                  Mar.
Dec.
                                                                   31,
31,
                                                                  2013
2012    %
    Revenue-generating investments (total)                      70,345
68,733    2
    Investments general account                                  3,308
3,408  (3)
    Investments for account of policyholders                     5,936
6,024  (1)
    Off balance sheet investments third parties                 61,101
59,301    3 
 Market consistent value of new business MCVNB EUR millions, after
tax Q1 2013 Q4 2012 % Q1 2012 % Americas 95 63 51 47 102 The Netherlands
95 86 10 27 - United Kingdom 21 28 (25) 27 (22) New Markets 21 27 (22)
24 (13) Total 232 204 14 125 86 Modeled new business, APE and deposits
Premium business APE EUR millions Notes Q1 2013 Q4 2012 % Q1 2012 % 9
Americas 305 307 (1) 279 9 The Netherlands 88 253 (65) 70 26 United
Kingdom 286 256 12 216 32 New Markets 108 113 (4) 129 (16) Total 787 929
(15) 694 13 Deposit business Deposits EUR millions Notes Q1 2013 Q4 2012
% Q1 2012 % 9 Americas 4,518 4,328 4 4,935 (8) United Kingdom 2 4 (50) 8
(75) New Markets 211 132 60 180 17 Total 4,731 4,464 6 5,123 (8)
MCVNB/PVNBP summary Premium business MCVNB / MCVNB / MCVNB PVNBP PVNBP
APE EUR millions Notes Q1 2013 % % 10 Americas 53 1,290 4.1 17.5 The
Netherlands 95 1,319 7.2 108.2 United Kingdom 21 1,682 1.3 7.4 New
Markets 22 885 2.4 20.1 Total 191 5,176 3.7 24.2 Deposit business MCVNB
/ MCVNB / MCVNB PVNBP PVNBP Deposits EUR millions Notes Q1 2013 % % 10
Americas 42 6,629 0.6 0.9 United Kingdom - 2 - - New Markets (1) 270
(0.3) (0.4) Total 41 6,901 0.6 0.9 
 Notes: [1] For segment reporting purposes underlying earnings
before tax, net underlying earnings, commissions and expenses, operating
expenses, income tax (including joint ventures (jv's) and
associated companies), income before tax (including jv's and
associated companies) and market consistent value of new business are
calculated by consolidating on a proportionate basis the revenues and
expenses of jv's and Aegon's associated companies in Spain,
India, Brazil and Mexico. Aegon believes that its non-IFRS measures
provide meaningful information about the underlying operating results of
its business including insight into the financial measures that
Aegon's senior management uses in managing its business. Among
other things, Aegon's senior management is compensated based in
part on Aegon's results against targets using the non-IFRS measures
presented here. While other insurers in Aegon's peer group present
substantially similar non-IFRS measures, the non-IFRS measures presented
in this document may nevertheless differ from the non-IFRS measures
presented by other insurers. There is no standardized meaning to these
measures under IFRS or any other recognized set of accounting standards
and readers are cautioned to consider carefully the different ways in
which Aegon and its peers present similar information before comparing
them. Aegon believes the non-IFRS measures shown herein, when read
together with Aegon's reported IFRS financial statements, provide
meaningful supplemental information for the investing public to evaluate
Aegon's business after eliminating the impact of current IFRS
accounting policies for financial instruments and insurance contracts,
which embed a number of accounting policy alternatives that companies
may select in presenting their results (i.e. companies can use different
local GAAPs) and that can make the comparability from period to period
difficult. For a definition of underlying earnings and the
reconciliation from underlying earnings before tax to income before tax,
being the most comparable IFRS measure, reference is made to Note 3
"Segment information" of Aegon's condensed consolidated
interim financial statements. [2] This note is not being used. [3] Sales
is defined as new recurring premiums plus 1/10 of single premiums plus
1/10 of gross deposits plus new premium production accident and health
plus new premium production general insurance. [4] The present value, at
point of sale, of all cashflows for new business written during the
reporting period, calculated using approximate point of sale economics
assumptions. Market consistent value of new business is calculated using
a risk neutral approach, ignoring the investment returns expected to be
earned in the future in excess of risk free rates (swap curves), with
the exeption of an allowance for liquidity premium. The market
consistent value of new business is calculated on a post tax basis,
after allowing for the time value financial options and guarentees, a
market value margin for non-hedgeable financial and non-financial risks
and the costs of non-hedgeable stranded capital. [5] Return on equity is
calculated by dividing the net underlying earnings after cost of
leverage by the average shareholders' equity excluding the
preferred shares, the revaluation reserve and the reserves related to
defined benefit plans. [6] Capital securities that are denominated in
foreign currencies are, for purposes of calculating the capital base
ratio, revalued to the period-end exchange rate. The capital base ratio
excludes Aegon's revaluation reserve and defined benefit plan
remeasurements. [7] Included in other income/(charges) are charges made
to policyholders with respect to income tax in the United Kingdom. [8]
Includes production on investment contracts without a discretionary
participation feature of which the proceeds are not recognized as
revenues but are directly added to Aegon's investment contract
liabilities. [9] APE = recurring premium + 1/10 single premium. [10]
PVNBP: Present value of new business premiums (PVNBP) is the premiums
for the new business sold during the reporting period, projected using
assumptions and projection periods that are consistent with those used
to calculate the market consistent value of new business, discounted
back to point of sale using the swap curve (plus liquidity premium where
applicable). [11] Reconciliation of operating expenses, used for segment
reporting, to Aegon's IFRS based operating expenses. Q1 2013
Employee expenses 512 Administrative expenses 263 Operating expenses for
IFRS reporting 775 Operating expenses related to jv's and
associates 29 Operating expenses in earnings release 804 [12] New life
sales, gross deposits and net deposits data include results of jv's
and Aegon's associated companies in Spain, India, Brazil and Mexico
which are consolidated on a proportionate basis. [13] Operational free
cash flow reflect the sum of the return on free surplus, earnings on
in-force business, release of required surplus on in-force business
reduced by new business first year strain and required surplus on new
business. [a] The calculation of the IGD (Insurance Group Directive)
capital surplus and ratio are based on Solvency I capital requirements
on IFRS for entities within the EU (Pillar 1 for Aegon UK), and local
regulatory solvency measurements for non-EU entities. Specifically,
required capital for the life insurance companies in the US is
calculated as two times the upper end of the Company Action Level range
(200%) as applied by the National Association of Insurance Commissioners
in the US. The calculation of the IGD ratio excludes the available and
required capital of the UK With-Profit funds. In the UK solvency surplus
calculation the local regulator only allows the available capital number
of the With-Profit funds included in overall local available capital to
be equal to the amount of With-Profit funds' required capital. [b]
The results in this release are unaudited. [c] 2012 comparative figures
have been restated to reflect changes in accounting policies driven by
IFRS 10 and 11 as well as IAS 19. Refer for more details to the Q1 2013
condensed consolidated interim financial statements. 

ADDITIONAL INFORMATION

The
Hague
   , The or ‘s Gra·ven·ha·ge

The de facto capital of the Netherlands, in the western part of the country near the North Sea. The Hague grew around a palace built c.
 – May 8, 2013

Media conference call

8:00 a.m.
CET

abbr.
Central European Time


 Central European Time

 n abbr (= Central European Time) → hora de Europa central

 abbr
 Podcast available after the call on aegon.com

Analyst & investor conference call

10:30 a.m. CET Audio webcast on 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.

Presentations

Presentations will be available on aegon.com at 7:35 a.m. CET

Supplements

Aegon’s Q1 2013 Financial Supplement and Condensed Consolidated
Interim Financial Statements are available on aegon.com.

DISCLAIMERS

Cautionary note regarding non-IFRS measures

This document includes the 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 its non-IFRS measures, together with the
IFRS information, provide meaningful information about the underlying
operating results of Aegon’s business including insight into the
financial measures that senior management uses in managing the
business.

Local currencies and constant currency exchange rates

This document contains certain information about Aegon’s
results, financial condition and revenue generating investments
presented in USD for the Americas and 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:

** 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
 /mor·bid·i·ty/ ()
1. a diseased condition or state.

2. the incidence or prevalence of a disease or of all diseases in a population.


n.
,
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
  
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.

2.
 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.

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
  
adv.
1. To that, this, or it.

2. Archaic In addition to that; furthermore.


Adverb

Formal

1. to that or it

2.
 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
  
adj.
1. Almost exact or correct:

2.
 24,000
people and have millions of customers across the globe. Further
information: aegon.com.

Media relations
Greg
 
 Tucker +31(0)70-344-8956 gcc@aegon.com

Investor relations

 
Willem

 
van den Berg

 +31(0)70-344-8305
ir@aegon.com