Tax Free Savings Account Rbc

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, 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
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

* Strong capital position and cash flows

*
IGD

abbr.
immunoglobulin D


IgD

immunoglobulin D. See immunoglobulin.
[sup.a)]
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, 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 business completed with exit from CAM
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 ambition

Aegon’s aim to be a leader in all of its chosen markets by 2015
is supported by four strategic objectives: Optimize portfolio, Enhance
customer loyalty, Deliver operational excellence and Empower employees.
These key objectives have been
embedded

 in all Aegon businesses. They
provide the strategic framework for the company’s ambition to
become the most-recommended life insurance and pension provider by
customers and business partners, as well as the most-preferred employer
in the sector.

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 portfolio

Aegon 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 excellence

Aegon recently received two awards for its Aegon Retirement Choices
(ARC) 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, 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 loyalty

Putting 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 employees

Aegon 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 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 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 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 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 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]] 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 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 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.

Manda to ry changes in accounting policies

On January 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 one mortgage
securitization

 vehicle,
revisited consolidation of several
investment funds

 and uses the equity
method instead of using 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 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 (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.

ADDITIONAL INFORMATION

The Hague – 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 & inves to r 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.

Use this link for the full version of the press release:
http://www.aegon.com/en/Home/Media/Press-Releases/20131/2013/Aegon-delivers-strong-Q1-2013-results-/

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, persistence and other
factors that may impact the profitability of Aegon’s insurance
products;

** Reinsurers to whom Aegon has ceded significant
underwriting

 risks
may fail to meet their obligations;

** Changes affecting interest rate levels and continuing low or
rapidly changing interest rate levels;

** Changes affecting currency exchange rates, in particular the
EUR/USD and EUR/GBP exchange rates;

** Changes in the availability of, and costs associated with,
liquidity sources such as bank and capital markets funding, as well as
conditions in the credit markets in general such as changes in borrower
and
counterparty

 creditworthiness;

** Increasing levels of competition in the United States, the

Netherlands, the

 United Kingdom and emerging markets;

** Changes in laws and regulations, particularly those affecting
Aegon’s operations, ability to hire and retain key personnel, the
products Aegon sells, and the attractiveness of certain products to its
consumers;

** Regulatory changes relating to the insurance industry in the
jurisdictions in which Aegon operates;

** Changes in customer behavior and public opinion in general
related to, among other things, the type of products also Aegon sells,
including legal, regulatory or commercial necessity to meet changing
customer expectations;

** Acts of God, acts of terrorism,
acts of war

 and pandemics;

** Changes in the policies of
central banks

 and/or governments;

** Lowering of one or more of Aegon’s debt ratings issued by
recognized rating organizations and the adverse impact such action may
have on Aegon’s ability to raise capital and on its liquidity and
financial condition;

** Lowering of one or more of insurer financial strength ratings of
Aegon’s insurance subsidiaries and the adverse impact such action
may have on the premium writings, policy retention, profitability and
liquidity of its insurance subsidiaries;

** The effect of the European Union’s
Solvency II

 requirements
and other regulations in other jurisdictions affecting the capital Aegon
is required to maintain;

**
Litigation

 or regulatory action that could require Aegon to pay
significant damages or change the way Aegon does business;

** As Aegon’s operations support complex transactions and are
highly dependent on the proper functioning of information technology, a
computer system failure or security breach may disrupt Aegon’s
business, damage its reputation and adversely affect its results of
operations, financial condition and cash flows;

** Customer responsiveness to both new products and distribution
channels;

** Competitive, legal, regulatory, or tax changes that affect
profitability, the distribution cost of or demand for Aegon’s
products;

** Changes in accounting regulations and policies may affect
Aegon’s reported results and shareholders’ equity;

** The impact of acquisitions and divestitures, restructurings,
product withdrawals and other unusual items, including Aegon’s
ability to integrate acquisitions and to obtain the anticipated results
and synergies from acquisitions;

** Catastrophic events, either manmade or by nature, could result in
material losses and significantly interrupt Aegon’s business;
and

** Aegon’s failure to achieve anticipated levels of earnings or
operational efficiencies as well as other cost saving initiatives.

Further details of potential risks and uncertainties affecting Aegon
are described in its filings with the Netherlands Authority for the
Financial Markets and the US Securities and Exchange Commission,
including the Annual Report. These forward-looking statements speak only
as of the date of this document. Except as required by any applicable
law or regulation, Aegon expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in
Aegon’s expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.

About Aegon As an international insurance, pensions and asset
management company based in The Hague, Aegon has businesses in over
twenty markets in the Americas, Europe and Asia. Aegon companies employ
approximately 24,000 people and have millions of customers across the
globe. Further information: aegon.com.

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

SOURCE AEGON N.V.