Last checked at 12 Apr 2012 07:00
AEGON recategorizes financial reporting of Asian operations and Corporate Center expenses
As of the first quarter of 2012, AEGON will revise its financial reporting to reflect changes in its organization.
Businesses in Asia, which were previously managed by AEGON Americas, will beincluded in the Asia line of business within the "New Markets" segment. Thisrevision in financial reporting reflects changes in management of theorganization, as AEGON's Asian operations are now managed from the company'sregional head office in Hong Kong. Key figures are provided in the tablesbelow. In 2011, the underlying earnings before tax generated by the Asianoperations totaling EUR 37 million were reported under the "Americas" segment.Additionally, as of the first quarter of 2012, part of the expenses attributedto AEGON's Corporate Center will be charged to AEGON's operating units goingforward. This change reflects the various services and support provided by theCorporate Center to operating units. It is expected that approximately EUR 70million will be charged to the operating units annually.
AEGON CFO Jan Nooitgedagt said: "As part of the change in the management structure of our Asian operations and the range of services provided to our businesses from the Corporate Center, we have evaluated our reporting with the aim of providing the most relevant measurements. We believe that this new approach is a better reflection of how we manage our operations and the progress of our business."
These revisions will not have any impact on consolidated total underlying earnings or net income reported by AEGON. The tables below reflect the recategorization of Asian operations only, as Corporate Center charges to operating units will be applied prospectively.
TablesForward-looking statements
The statements contained in this document that are not historical facts areforward-looking statements as defined in the US Private Securities LitigationReform Act of 1995. The following are words that identify such forward-lookingstatements: 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 undertakesno obligation to publicly update or revise any forward-looking statements.Readers are cautioned not to place undue reliance on these forward-lookingstatements, which merely reflect company expectations at the time of writing.Actual results may differ materially from expectations conveyed inforward-looking statements due to changes caused by various risks anduncertainties. Such risks and uncertainties include but are not limited to thefollowing:
* 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; and
- 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; - 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 the company'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 the
company sells, and the attractiveness of certain products to its consumers;
* Regulatory changes relating to the insurance industry in the jurisdictions
in which AEGON operates; * 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 the company'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 of its insurance subsidiaries and liquidity; * 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 the company 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 the company'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 shareholder's 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 the company aredescribed in the company's filings with NYSE Euronext Amsterdam and the USSecurities and Exchange Commission, including the Annual Report. Theseforward-looking statements speak only as of the date of this document. Exceptas required by any applicable law or regulation, the company expresslydisclaims any obligation or undertaking to release publicly any updates orrevisions to any forward-looking statements contained herein to reflect anychange in the company's expectations with regard thereto or any change inevents, conditions or circumstances on which any such statement is based.About AEGON
As an international life insurance, pension and asset management company based in
The Hague, AEGON has businesses in over twenty markets in the Americas, Europeand Asia. AEGON companies employ over 25,000 people and have nearly 47 millioncustomers across the globe.Key figures - EUR Full year2011 Full year 2010 Underlying earnings 1.5 billion 1.8 billionbefore tax New life sales 1.8 billion 2.1 billion Gross deposits 32 billion 33 billion Revenue-generating 424 billion 413 billioninvestments (end of period) Contact information
Media relations:Greg Tucker, +31(0)70 344 8956,gcc-ir@aegon.com
Investor relations:Willem van den Berg, +31 (0)70 344 8305, 877 548 9668 - toll free USA only, ir@aegon.com
www.aegon.comAPRIL12, 2012PRESS RELEASE
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