Last checked at 10 May 2012 07:00
Q1 2012 RESULTS MAY 10, 2012
AEGON delivers growth in sales and earnings; maintains strong capital position
- Business growth, cost reductions and favorable financial markets drive higher earnings
* Underlying earnings increase to EUR 425 million, including additional adverse mortality experience of EUR 12 million compared to Q1 2011
* Impairments decline to lowest level in four years to EUR 41 million
* Net income increases to EUR 521 million driven by favorable fair value items results and tax benefits
* Return on equity of 6.9%, or 7.8% excluding run-off businesses
* Target of doubling fee-based earnings achieved: 35% of first quarter underlying earnings from fee businesses
- Strong increase in total sales driven by pension and asset management deposits
* US pension sales and new asset management mandates drive 50% increase in deposits to EUR 11 billion
* Accident and health sales increase 23% to EUR 195 million, driven by growth in the Americas
* New life sales decline 11% to EUR 445 million; increase in US offset by lower sales in UK and Netherlands
* MCVNB increases to EUR 125 million; product repricing as a result of low interest rates
- Continued strong capital position and cash flows
* IGDa) solvency ratio increases to 201%; IGD surplus capital of EUR 7.1 billion
* Capital base ratio of 74.2%; on track to exceed minimum of 75% by the end of 2012
* Operational free cash flow increases to EUR 805 million, including EUR 400 million of exceptional items
Statement of Alex Wynaendts, CEO
"Following a year of considerable transformation, AEGON's businesses made a strong start in the first quarter of 2012 with solid increases in sales and earnings. Our successful efforts to reduce costs across our organization have created greater focus while also contributing to higher earnings. Our emphasis on serving the growing demand for retirement planning solutions led to the substantial increase in pension deposits in the United States and our third-party asset management business succeeded in capturing a significant inflow of new business. In keeping with one of our key strategic objectives, we delivered early on our target to generate a greater proportion of earnings from fee-based versus spread-based business.
"We were pleased with the low level of impairments during the quarter, their lowest in four years. At the same time, it continues to be our priority to maintain AEGON's strong capital position in this period of continued economic uncertainty.
"AEGON's first quarter results confirm the resilience of our franchise and that the actions being pursued by management are the right ones. It is for this reason that we look forward to resuming a dividend payment, which will be decided during our upcoming Annual General Meeting of Shareholders."
KEY PERFORMANCE INDICATORS
amounts in EUR millions b) Notes Q1 2012 Q4 2011 % Q1 2011 % Underlying earnings before tax 1 425 346 23 414 3 Net income 2 521 81 - 327 59 Sales 3 1,758 1,409 25 1,411 25
Market consistent value of new business 4 125 71 76 121 3
Return on equity 5 6.9% 5.2% 33 7.7% (10)For notes see page 20.STRATEGIC HIGHLIGHTS
- AEGON details UK pensions reform proposition
- AEGON expands strategic partnership with Liberbank in Spain
- AEGON to delist its common shares from the London Stock Exchange
Sustainable earnings growth with an improved risk-return profile
AEGON aims to deliver sustainable earnings growth with an improved risk-return profile. The following targets* have been set by the company:
- Grow underlying earnings before tax on average by 7%-10% per annum between 2010 and 2015.
- Achieve a return on equity of 10%-12% by 2015.
- Increase fee-based earnings to 30%-35% of underlying earnings before tax by 2015.
- Increase normalized operational free cash flowby 30% by 2015 from 2010 level.
* Main economic assumptions embedded in targets: annual gross equity market return of 9%, 10 year US interest rate of 4.75% in 2016 and EUR/USD rate of 1.35.
AEGON believes it can achieve these targets at the lower end of the target ranges as the economic slowdown adversely affects the company's growth potential.
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 distributors, as well as the most-preferred employer in the sector.
Optimize portfolio
In the United Kingdom, AEGON is positioning itself to capture the opportunities presented by pension reform and the introduction of automatic enrolment into pension schemes. In March 2012, AEGON announced it would be working with the National Employment Savings Trust (NEST) Corporation in the United Kingdom to provide integrated auto-enrolment support for employers who want to run an AEGON pension scheme alongside a NEST scheme.Auto-enrolment is expected to increase employer and employee engagement in workplace pension arrangements and AEGON is well placed to offer complementary pension solutions. AEGON is on track to launch a dedicated workplace savings platform solution in mid-2012, as part of its recently launched AEGON Retirement Choices (ARC) platform.
AEGON is also focused on securing strategic distribution agreements in the United Kingdom ahead of the market changes as a result of the Retail Distribution Review and has recently confirmed it has been selected for the restricted advice panel of leading adviser group Sesame Bankhall.
Asia represents a key long-term growth market for AEGON. To fully optimize the prospects for AEGON's businesses throughout the region, all of AEGON's Asian operations are now managed from the company's regional head office in Hong Kong. This allows AEGON to better leverage product and distribution expertise, capture efficiencies, and pursue organic growth of AEGON's franchise in Asia.
As of the first quarter of 2012, AEGON has revised its financial reporting to reflect these changes in its organization. Businesses that were previously managed by AEGON Americas are included in the Asia line of business within the "New Markets" segment going forward. The change does not have any impact on consolidated total underlying earnings or net income reported by AEGON.
In Spain, AEGON has reached an agreement with Liberbank to expand its long-term life insurance and pension partnership with the acquisition of 50% of Liberbank Vida. In addition to the network of Caja Cantabria, the agreement now also includes the branch networks of Cajastur and Caja Extremadura. The agreement allows AEGON and Liberbank to provide life insurance and pension products to over one million clients through a network of over 700 branch offices.
In India, AEGON Religare has relaunched iTerm,an innovative term life insurance product combining it with a number of optional new riders. The company once again demonstrates its leading position in online sales and expects to sell at least 15 to 20 percent of its policies through online distribution within two years as millions of Indian consumers go online. Since the introduction of iTerm in 2009, over 19,000 policies have been sold online.
AEGON received approval from the Dutch Central Bank (DNB) to set up a second premiepensioen-instelling (PPI), a low-cost carrier for individual retirement savings accounts. AEGON's second PPI will provide defined contribution pension solutions for small- and medium-sized enterprises and is complimentary to AEGON's first PPI which specifically targets larger corporations.
Deliver operational excellence
In the United Kingdom, AEGON has successfully implemented its new operating model and reached its target to reduce operating expenses for its Life and Pension businesses by 25% from 2009 levels. The program to restructure the business delivers GBP 80 million in expense savings, the benefits of which are visible in 2012.
In the Netherlands, AEGON is on track with reorganizing its business to be more agile and better positioned to respond to changing conditions and opportunities in the Dutch market. The reorganization program and other initiatives will result in reducing the cost base for AEGON The Netherlands by EUR 100 million, compared to the cost base for 2010. The cost savings aim to offset pressure on underlying earnings from higher mortgage funding costs, increased longevity provisioning and a declining life insurance back-book. The majority of the cost savings is expected to be achieved in 2012. To date, AEGON has implemented costs savings of EUR 49 million.
Delisting from London Stock Exchange
AEGON will make an application to delist its common shares from the London Stock Exchange (LSE) in the United Kingdom. The volume of AEGON shares traded on the LSE is negligible and does not justify the related expenses. The last trading date will be announced once the application to delist has been accepted by the LSE. AEGON shares will remain listed on Euronext Amsterdam and the New York Stock Exchange.
FINANCIAL OVERVIEW c) EUR millions Notes Q1 2012 Q4 2011 % Q1 2011 % Underlying earnings before taxAmericas 292 316 (8) 336 (13)The Netherlands 79 75 5 81 (2)United Kingdom 29 (26) - 12 142New markets 88 65 35 68 29Holding and other (63) (84) 25 (83) 24Underlying earnings before tax 425 346 23 414 3 Fair value items 156 (20) - (85) -Realized gains / (losses) 45 49 (8) 91 (51)on investmentsImpairment charges (41) (94) 56 (62) 34Other income / (charges) (17) (194) 91 (3) -Run-off businesses (2) 1 - 22 -Income before tax 566 88 - 377 50Income tax (45) (7) - (50) 10Net income 521 81 - 327 59 Net income / (loss) attributable to:Equity holders of AEGON N.V. 521 79 - 327 59Non-controlling interests - 2 - - - Net underlying earnings 328 253 30 333 (2) Commissions and expenses 1,399 1,684 (17) 1,513 (8)of which operating expenses 11 781 872 (10) 837 (7) New life salesLife single premiums 1,160 1,876 (38) 1,726 (33)Life recurring premiums annualized 329 311 6 328 -Total recurring plus 1/10 single 445 498 (11) 501 (11) New life salesAmericas 12 120 109 10 105 14The Netherlands 32 117 (73) 65 (51)United Kingdom 213 189 13 247 (14)New markets 12 80 83 (4) 84 (5)Total recurring plus 1/10 single 445 498 (11) 501 (11) New premium production 195 188 4 159 23accident and health insuranceNew premium production 14 13 8 13 8general insurance Gross deposits (on and off balance)Americas 12 7,392 5,009 48 5,629 31The Netherlands 560 560 - 462 21United Kingdom 8 9 (11) 19 (58)New markets 12 3,083 1,522 103 1,267 143Total gross deposits 11,043 7,100 56 7,377 50 Net deposits (on and off balance)Americas 12 1,061 (886) - (233) -The Netherlands (185) (160) (16) (115) (61)United Kingdom (1) 1 - 2 -New markets 12 1,364 108 - (1,719) -Total net deposits excluding 2,239 (937) - (2,065) -run-off businessesRun-off businesses (1,160) (611) (90) (880) (32)Total net deposits 1,079 (1,548) - (2,945) -OPERATIONAL HIGHLIGHTS
Underlying earnings before tax
AEGON's underlying earnings before tax increased 3% compared with the first quarter 2011 to EUR 425 million in the first quarter of 2012. This increase is the result of a strong delivery on cost reduction programs, higher fee-based earnings due to favorable equity markets and favorable currency movements. Earnings were negatively impacted by adverse mortality experience and lower fixed annuity earnings in the Americas, and in the Netherlands by poor morbidity experience.
Underlying earnings from the Americas amounted to EUR 292 million. The 13% decrease compared to the first quarter of 2011 is primarily due to unfavorable mortality results (EUR 12 million) and lower fixed annuity earnings, as the product is de-emphasized, partly offset by higher fee-based earnings. In addition, earnings were impacted by recurring charges for Corporate Center expenses (EUR 7 million) and an increase in employee benefit expenses (EUR 10 million).
In the Netherlands, underlying earnings decreased 2% to EUR 79 million. The decline was mainly the result of adverse claim experience on disability products in the non-life business offset by a higher contribution from AEGON's growing Dutch mortgage loan portfolio.
In the United Kingdom, underlying earnings more than doubled to EUR 29 million. The strong improvement in earnings was driven by the successful implementation of the cost reduction program in AEGON's businesses in the United Kingdom and the non-recurrence of exceptional charges recorded in the previous year.
Underlying earnings from New Markets increased 29% to EUR 88 million. The increase was mainly the result of higher underlying earnings at AEGON Asset Management as a result of the effects of growth, increased fees and phasing of expenses, only partly offset by lower underlying earnings from Central & Eastern Europe and Variable Annuities Europe.
Total holding costs decreased 24% to EUR 63 million as part of AEGON's Corporate Center expenses are now charged to the operating units. This change reflects the various services and support provided by the Corporate Center to operating units. The first quarter 2012 charge to operating units amounted to EUR 16 million.
Net income
All operating units contributed positively to net income in the first quarter 2012. The increase to EUR 521 million was driven by higher underlying earnings, favorable results on fair value items and lower impairments.
Fair value items
The results from fair value items increased to EUR 156 million. These positive results mainly related to alternative asset performance in the Americas, the guarantee portfolio in the Netherlands and derivates in the holding.
Realized gains on investments
In the first quarter, realized gains on investments amounted to EUR 45 million and were the result of normal trading in the investment portfolio.
Impairment charges
Impairments decreased to EUR 41 million, the lowest amount in four years. Impairments continue to be primarily linked to residential mortgage-backed securities in the United States.
Other charges
Other charges amounted to EUR 17 million and consisted mainly of a EUR 17 million charge related to the full year 2012 Hungarian bank tax. Restructuring charges in the Netherlands (EUR 3 million) and AEGON Asset Management (EUR 1 million) were offset by income related to policyholder tax of EUR 6 million.
Run-off businesses
The results of run-off businesses amounted to a loss of EUR 2 million as positive results for BOLI/COLI (EUR 17 million) were offset by a loss on the
institutional spread-based business (EUR 7 million) and the amortization of the prepaid cost of reinsurance asset related to the divestment of the life reinsurance activities (EUR 9 million).
Income tax
Income tax amounted to a charge of EUR 45 million in the first quarter, including a benefit of EUR 51 million related to the run-off of the company's institutional spread-based activities in Ireland. Also, a EUR 27 million tax benefit was recorded in the United Kingdom as a result of an announced tax rate reduction and the Netherlands reported a tax benefit of EUR 19 million resulting from a settlement.
Return on equity
Higher average shareholders' equity excluding revaluation reserves and lower net underlying earnings compared with the first quarter 2011, resulted in a return on equity of 6.9% for the first quarter 2012. Return on equity excluding the run-off businesses amounted to 7.8% over the same period.
Operating expenses
In the first quarter, operating expenses decreased 7% to EUR 781 million as a result of cost savings, lower restructuring charges and divestments.
Sales and deposits
AEGON's total sales increased 25% to EUR 1.8 billion. Increased new life sales in the Americas were offset by lower sales in the United Kingdom and the Netherlands. Strong gross deposits were particularly driven by pension deposits in the Americas and good performance in both the retail and institutional segments of AEGON Asset Management. New premium production for accident and health also increased strongly, mainly driven by travel insurance in the United States.
Market consistent value of new business
AEGON manages its business on an economic framework basis, meaning that it prices its products based on hedgeable market circumstances, versus assumptions about future economic conditions. As of the first quarter of 2012, AEGON starts disclosing the market consistent value of new business on a quarterly basis. At the same time, the publication of value of new business on the company's traditional embedded value basis is being discontinued.
Compared with the first quarter of 2011, the market consistent value of new business increased slightly to EUR 125 million. Higher profitability in the annuity business in the United Kingdom and a higher contribution from mortgage loans in the Netherlands were partially offset by a decrease in value of new business in the Americas due to lower interest rates.
Revenue-generating investments
Revenue-generating investments rose 3% compared with year-end 2011 to EUR 437 billion at March 31, 2012. The increase as a result of net inflows and the effect of higher equity markets on unit-linked and off balance sheet assets was partly offset by outflows from run-off businesses and fixed annuities.
Capital management
AEGON's core capital excluding revaluation reserves amounted to EUR 17.7 billion, equivalent to 74.2%6 of the company's total capital base at March 31, 2012. AEGON is on track to reach a capital base ratio of at least 75% by the end of 2012.
Shareholders' equity increased to EUR 21.3 billion. The increase was a result of first quarter's net income and an increase in the revaluation reserves partly offset by a decline in the value of the US dollar against the euro.
REVENUE-GENERATING INVESTMENTS
Mar. 31, Dec. 31, 2012 2011 %
Revenue-generating investments (total) 436,753 423,518 3 Investments general account
140,770 144,079 (2)
Investments for account of policyholders 149,501 142,529 5 Off balance sheet investments third parties 146,482 136,910 7
The revaluation reserves increased slightly to EUR 3.6 billion during the first quarter mainly the result of a tightening of credit spreads.
In addition, the foreign currency translation reserves declined, primarily the result of a strengthening of the euro against the US dollar. Shareholders' equity per common share, excluding preference capital, amounted to EUR 10.18 at March 31, 2012.
At the end of the first quarter 2012, excess capital in the holding amounted to EUR 1.4 billion. AEGON aims to maintain at least 1.5 times holding expenses as a buffer at the holding, in 2012 equivalent to approximately EUR 750 million.
At March 31, 2012, AEGON's Insurance Group Directive (IGD) ratio was 201%, an increase from the level of 195% at the end of 2011. Measured on a local solvency basis, the Risk Based Capital (RBC) ratio in the United States remained level at ~445%, the IGD ratio in the Netherlands increased to ~210%, while the Pillar I ratio in the United Kingdom was ~135% at the end of the first quarter 2012.
In May, AEGON completed the sale of EUR 667 million of SAECURE 11 notes. The transaction included a USD 600 million tranche of USD denominated residential mortgage-backed securities (RMBS) placed with US investors. With this transaction, AEGON is further diversifying its RMBS investor base outside Europe.
AEGON believes the successful placement is a recognition by US investors that Dutch RMBS notes are regarded as high-quality and that AEGON's SAECURE program is acknowledged as a top-tier program in the Dutch RMBS market. The net proceeds will be used to refinance part of the existing Dutch mortgage loan portfolio of AEGON.
Cash flows
AEGON aims to deliver sustainable cash flows and has announced its intention to improve operational free cash flow from its 2010 normalized level of EUR 1.0-1.2 billion per annum by 30% by 2015.
AEGON's subsidiaries generated EUR 805 million in operational free cash flows during the first quarter. Operational free cash flows were positively impacted by favorable interest rate movements and rising equity markets. Excluding exceptional items of approximately EUR 400 million, operational free cash flows totaled EUR 405 million. Operational free cash flows represent distributable earnings generation of the business units. The impact of capital preservation initiatives is not included in the reported operational free cash flows.
APPENDIX I -- Americas --The Netherlands --United Kingdom --New Markets
FINANCIAL OVERVIEW,Q1 2012 GEOGRAPHICALLY c)EUR millions Holding, other activities The United New & Americas Netherlands Kingdom Markets eliminations Total Underlying earnings beforetax by line of businessLife 102 56 17 38 - 213Individual savings and 126 - - (4) - 122retirement productsPensions 62 21 13 1 - 97Non-life - (5) - 12 1 8Distribution - 7 (1) - - 6Asset Management - - - 29 - 29Other - - - - (64) (64)Share in underlying earnings 2 - - 12 - 14before tax of associatesUnderlying earnings before tax 292 79 29 88 (63) 425 Fair value items 64 42 (2) 7 45 156Realized gains / (losses) 9 34 - 2 - 45on investmentsImpairment charges (30) (3) - (4) (4) (41)Other income / (charges) (1) (3) 6 (18) (1) (17)Run-off businesses (2) - - - - (2)Income before tax 332 149 33 75 (23) 566Income tax (53) (8) 13 (27) 30 (45)Net income 279 141 46 48 7 521 Net underlying earnings 208 62 48 59 (49) 328 EMPLOYEE NUMBERS Mar. 31, Dec. 31, 2012 2011 Employees excluding agents 22,132 22,249Agents 2,936 3,039Total number of employees 25,068 25,288excluding AssociatesAEGON's share of employees 2,908 3,982(including agents) in AssociatesTotal 27,976 29,270AMERICAS
- Underlying earnings before tax amount to USD 383 million, impacted by adverse mortality experience
- Net income increases to USD 366 million, driven by positive fair value items and lower impairments
- Strong sales of life insurance and accident & health at USD 157 million and USD 231 million respectively
- Gross deposits of USD 9.7 billion up 26% driven by continued strong pension deposits
Underlying earnings before tax
Underlying earnings from the Americas in the first quarter 2012 amounted to USD 383 million. The decrease compared to the first quarter of 2011 is primarily due to unfavorable mortality results (USD 16 million) partly offset by higher fee-based earnings. In addition, earnings were impacted by recurring charges for Corporate Center expenses of USD 9 million and an increase of USD 13 million in employee benefit expenses.
- Earnings from Life & Protection in the Americas amounted to USD 128 million. Compared with Q1 2011, earnings included USD 16 million of higher mortality claims.
- Individual Savings & Retirement earnings decreased to USD 163 million. Earnings from variable annuities improved to USD 97 million as a result of higher account balances. Fixed annuity earnings decreased to USD 62 million as a result of declining asset balances as the product is de-emphasized.
- Earnings from Employer Solutions & Pensions remained level at USD 81 million as the effect of growth in account balances was offset by increased benefit plan and Corporate Center expenses.
- Canada earnings decreased to USD 8 million, while earnings from Latin America amounted to USD 3 million.
Net income
Net income from AEGON's businesses in the Americas increased to USD 366 million in the first quarter. The main drivers were positive results from fair value items and lower impairments, partly offset by a decrease in underlying earnings, a decline in results from run-off businesses and lower realized gains on investments.
Results from fair value items amounted to USD 83 million for the quarter. Alternative asset performance was USD 158 million above its expected return, mainly driven by a significant change in the valuation of a fund containing mineral rights. In addition, credit derivatives gained USD 54 million as a result of credit spread tightening. The macro hedge loss of USD 108 million reflected the strong increase in equity markets during the quarter and the continued low interest rate environment.
Gains on investments of USD 12 million were realized as a result of normal trading activity. Net impairments amounted to USD 39 million, the lowest amount in four years. Impairments continue to be primarily linked to US residential mortgage-backed securities.
The results of run-off businesses amounted to a loss of USD 3 million. The loss on the institutional spread-based business and the amortization of the prepaid cost of reinsurance asset related to the divestment of the life reinsurance activities was partly offset by positive results from BOLI/COLI.
Net income included a net tax expense of USD 69 million in the first quarter, including a tax benefit of USD 34 million related to the run-off of the company's institutional spread-based activities in Ireland.
Return on capital
In the first quarter 2012, the return on average capital, excluding revaluation reserves, invested in AEGON's business in the Americas amounted to 5.6%. Excluding the capital allocated to the run-off businesses, the return on capital in the Americas would have amounted to 6.6%. Return on capital of AEGON's businesses excludes the benefit of leverage at the holding.
Operating expenses
Operating expenses decreased 1% to USD 478 million, primarily due to the divestiture of Transamerica Reinsurance and the wind down of the BOLI/COLI activities. Excluding restructuring charges, run-off activities, employee benefit plan expenses and the Corporate Center cost allocation, operating expenses increased 1%.
Sales and desposits
New life sales increased 10% to USD 157 million, primarily driven by strong indexed universal life sales as the product was recently launched into the brokerage channel. New premium production for accident & health insurance increased to USD 231 million, mainly the result of increased travel insurance sales.
Gross deposits increased to USD 9.7 billion as a result of higher takeover deposits in the retirement plan space and increased stable value deposits.
Variable annuity sales continued to be strong, despite a re-pricing of the company's variable annuity offerings reflecting the current low interest rate environment and subsequent higher hedging costs in its riders.
Net deposits increased to USD 1.4 billion in the first quarter - excluding run-off businesses. AEGON's core growth areas of variable annuities and pensions recorded net inflows of USD 0.4 billion and USD 2.3 billion respectively, which were partly offset by fixed annuity outflows of USD 0.6 billion. AEGON is de-emphasizing sales of fixed annuities as part of a strategic repositioning and incurs net outflows as a result.
Market consistent value of new business
In view of the fact that interest rates declined sharply in the third quarter of 2011, AEGON has actively repriced products and slowed down sales of unprofitable business in order to meet its return targets. As a result, a decline in the market consistent value of new business was mitigated and amounted to USD 62 million in the first quarter 2012. A strong contribution from the pensions business was more than offset by lower value of new business on certain universal life insurance and variable annuity products compared to the first quarter of 2011.
Revenue-generating investments
Revenue-generating investments amounted to USD 327 billion at March 31, 2012, an increase of 3% compared with year-end 2011. The decrease in general account assets as a result of outflows from the run-off businesses and fixed annuities was more than offset by net inflows and the effect of higher equity markets on unit-linked and off balance sheet assets.
REVENUE-GENERATING INVESTMENTS
Mar. 31, Dec. 31, 2012 2011 %
Revenue-generating investments 326,661 315,791 3 (total) Investments general account
114,117 116,283 (2)Investments for account of 86,279 80,137 8
policyholders
Off balance sheet investments third 126,265 119,371 6partiesAMERICAS c) USD millions Notes Q1 2012 Q4 2011 % Q1 2011 % Underlying earnings beforetax by line of businessLife and protection 128 154 (17) 180 (29)Fixed annuities 62 58 7 90 (31)Variable annuities 97 121 (20) 93 4Retail mutual funds 4 5 (20) 6 (33)Individual savings and 163 184 (11) 189 (14)retirement productsEmployer solutions & pensions 81 83 (2) 81 -Canada 8 4 100 11 (27)Latin America 3 1 200 (2) -Underlying earnings before tax 383 426 (10) 459 (17) Fair value items 83 (189) - (17) -Realized gains / (losses) 12 7 71 34 (65)on investmentsImpairment charges (39) (87) 55 (80) 51Other income / (charges) (1) (50) 98 - -Run- off businesses (3) 1 - 30 -Income before tax 435 108 - 426 2Income tax (69) 13 - (76) 9Net income 366 121 - 350 5 Net income / (loss) attributable to:Equity holders of AEGON N.V. 366 121 - 350 5 Net underlying earnings 273 301 (9) 337 (19) Commissions and expenses 1,055 1,347 (22) 1,186 (11)of which operating expenses 478 481 (1) 481 (1) New life sales 12Life single premiums 65 43 51 100 (35)Life recurring premiums annualized 150 144 4 133 13Total recurring plus 1/10 single 157 148 6 143 10 Life & protection 124 116 7 110 13Employer solutions & pensions 9 5 80 6 50Canada 14 15 (7) 17 (18)Latin America 10 12 (17) 10 -Total recurring plus 1/10 single 157 148 6 143 10 New premium production 231 233 (1) 189 22accident and health insurance Gross deposits (on and off 12balance) by line of businessLife & protection 3 4 (25) 3 -Fixed annuities 91 72 26 83 10Variable annuities 1,214 1,396 (13) 1,179 3Retail mutual funds 754 627 20 775 (3)Individual savings & 2,059 2,095 (2) 2,037 1retirement productsEmployer solutions & pensions 7,544 4,517 67 5,554 36Canada 74 82 (10) 97 (24)Latin America 4 4 - - -Total gross deposits 9,684 6,702 44 7,691 26 Net deposits (on and off 12balance) by line of businessLife & protection (10) (9) (11) (14) 29Fixed annuities (628) (752) 16 (801) 22Variable annuities 363 658 (45) 220 65Retail mutual funds (31) (191) 84 (50) 38Individual savings & (296) (285) (4) (631) 53retirement productsEmployer solutions & pensions 1,797 (950) - 485 -Canada (105) (37) (184) (158) 34Latin America 4 4 - - -Total net deposits excluding 1,390 (1,277) - (318) -run-off businessesRun-off businesses (1,519) (812) (87) (1,202) (26)Total net deposits (129) (2,089) 94 (1,520) 92THE NETHERLANDS
- Underlying earnings before tax of EUR 79 million, including a loss of EUR 5 million in Non-life
- Net income increases to EUR 141 million
- New life sales decrease to EUR 32 million as result of lower sales in Life and Pensions
Underlying earnings before tax
In the first quarter 2012, underlying earnings from AEGON's operations in the Netherlands decreased to EUR 79 million as higher earnings in Life & Savings were offset by lower earnings in Non-life. In addition, earnings were impacted by recurring charges for Corporate Center expenses of EUR 4 million.
- Earnings from AEGON's Life & Savings operations in the Netherlands increased to EUR 56 million, up 30% compared to the first quarter of 2011, partly driven by a higher contribution from AEGON's growing mortgage loan portfolio and cost savings.
- Earnings from the Pension business amounted to EUR 21 million, as the benefit of expense savings was mainly offset by lower investment income.
- Non-life recorded a loss of EUR 5 million, as a result of adverse claim experience on disability products which has been only partly offset by a reserve release following an update of assumptions. General trends in claim experience in disability in the Dutch non-life market are negative and are expected to continue throughout 2012 as a result of the current economic conditions.
- Earnings from the distribution businesses decreased to EUR 7 million mainly driven by deteriorated market conditions.
Net income
Net income from AEGON's businesses in the Netherlands increased to EUR 141 million and included a one-off tax benefit of EUR 19 million. Results on fair value items improved compared to the first quarter of 2011 and amounted to EUR 42 million. Gains on investments totaled EUR 34 million for the quarter and were a result of normal trading activity in the portfolio. Other charges included EUR 3 million related to the restructuring program in the Netherlands.
Return on capital
The return on average capital, excluding revaluation reserves, invested in AEGON's businesses in the Netherlands declined to 6.4%, the combined result of higher average capital levels and lower net underlying earnings. Return on capital of AEGON's businesses excludes the benefit of leverage at the holding.
Operating expenses
Operating expenses declined 1% to EUR 187 million, mainly driven by realized cost savings. Operating expenses included additional charges of EUR 3 million related to the restructuring of the Dutch operations.
Sales and deposits
New life sales decreased in the first quarter to EUR 32 million. Pension sales declined to EUR 14 million, as the comparable quarter of 2011 included a large single contract. Individual life sales declined and amounted to EUR 18 million, primarily driven by a shrinking Dutch life insurance market and lower production levels of mortgage-related life insurance.
Production of mortgages in the first quarter of 2012 declined to EUR 649 million, primarily the result of less activity on the Dutch mortgage market.
Premium production for accident & health amounted to EUR 9 million. Sales in income insurance products declined compared to the first quarter of 2011, as a result of price increases to improve margins. General insurance production amounted to EUR 9 million, up 13% compared to the first quarter of 2011, due to growth in newly added distribution channels.
Gross deposits increased to EUR 560 million, following a marketing campaign at AEGON Bank and the offering of more competitive interest rates.
Market consistent value of new business
The market consistent value of new business in the Netherlands increased significantly compared to the first quarter of 2011 to EUR 27 million. The increase was mainly driven by a higher contribution from mortgage loans and the successful introduction of a new mortgage product in 2011 (Banksparen).
Revenue-generating investments
Revenue-generating investments increased 3% to EUR 64 billion, compared with the previous quarter. The increase was driven mainly by the positive effect of higher equity markets and lower credit spreads.
THE NETHERLANDS EUR millions Notes Q1 2012 Q4 2011 % Q1 2011 % Underlying earnings beforetax by line of businessLife and Savings 56 40 40 43 30Pensions 21 36 (42) 22 (5)Non-life (5) 2 - 5 -Distribution 7 - - 11 (36)Share in underlying earnings - (3) - - -before tax of associatesUnderlying earnings before tax 79 75 5 81 (2) Fair value items 42 189 (78) (60) -Realized gains / (losses) 34 33 3 35 (3)on investmentsImpairment charges (3) (5) 40 (2) (50)Other income / (charges) (3) (84) 96 (8) 63Income before tax 149 208 (28) 46 -Income tax (8) (60) 87 (7) (14)Net income 141 148 (5) 39 - Net income / (loss) attributable to:Equity holders of AEGON N.V. 141 148 (5) 39 - Net underlying earnings 62 50 24 66 (6) Commissions and expenses 270 261 3 272 (1)of which operating expenses 187 191 (2) 189 (1) New life salesLife single premiums 245 856 (71) 457 (46)Life recurring premiums annualized 7 31 (77) 19 (63)Total recurring plus 1/10 single 32 117 (73) 65 (51) Life and Savings 18 13 38 26 (31)Pensions 14 104 (87) 39 (64)Total recurring plus 1/10 single 32 117 (73) 65 (51) New premium production 9 7 29 10 (10)accident and health insuranceNew premium production 9 6 50 8 13
general insurance
Gross deposits (on and offbalance) by line of businessLife and Savings 560 560 - 382 47Pensions - - - 80 -Total gross deposits 560 560 - 462 21 Net deposits (on and offbalance) by line of businessLife and Savings (185) (160) (16) (142) (30)Pensions - - - 27 -Total net deposits (185) (160) (16) (115) (61)
REVENUE-GENERATING INVESTMENTS
Mar. 31, Dec. 31, 2012 2011 %
Revenue-generating investments (total) 64,283 62,242 3 Investments general account
39,572 39,019 1
Investments for account of policyholders 24,711 23,223 6
UNITED KINGDOM
- Underlying earnings before tax increase to GBP 25 million as a result of lower expenses
- Net income amounts to GBP 39 million
- New life sales decrease to GBP 178 million due to anticipated lower pension sales
Underlying earnings before tax
In the first quarter of 2012, underlying earnings before tax increased to GBP 25 million, driven by lower expenses and the non-recurrence of exceptional charges. Earnings were negatively impacted by recurring charges for Corporate Center expenses of GBP 2 million.
- Earnings from Life declined to GBP 15 million, the result of lower earnings from annuities and adverse claims experience in individual protection.
- Earnings from Pensions improved strongly to GBP 11 million, mainly driven by the non-recurrence of exceptional charges recorded in the previous year and successful implementation of the cost reduction program in the AEGON's business in the UK.
- Distribution recorded a loss of GBP 1 million.
Net income
Net income declined to GBP 39 million, as higher underlying earnings were more than offset by lower realized gains on investments. Results on fair value items amounted to a loss of GBP 2 million. There were no impairments or realized gains during the quarter. A reduction in the corporate tax rate in the United Kingdom had a positive impact of GBP 22 million.
Return on capital
The return on average capital, excluding revaluation reserves, invested in AEGON's businesses in the United Kingdom increased to 6.3%, primarily as a result of higher net underlying earnings from pensions. Net underlying earnings for the first quarter of 2012 included a tax benefit of GBP 22 million from a reduction in the corporate tax rate in the United Kingdom. There was a similar benefit in the first quarter in 2011. Return on capital of AEGON's businesses excludes the benefit of leverage at the holding.
Operating expenses
Operating expenses for the first quarter of 2012 amounted to GBP 62 million, a 37% reduction following the successful implementation of the cost reduction program in the United Kingdom. Operating expenses in the first quarter benefited from favorable timing differences. For the full year, AEGON expects to achieve operating expenses at target level.
Sales and deposits
New life sales decreased 16% to GBP 178 million compared to the first quarter of 2011, as a result of an anticipated decrease in sales of pensions. In group pensions, increases in new business from increments and new entrants to existing schemes was offset by an anticipated decrease in sales of new schemes following reductions in commission levels to maintain margins. Compared to the fourth quarter of 2011, sales increased by 11%.
Market consistent value of new business
The market consistent value of new business in the United Kingdom increased to GBP 22 million, mainly driven by lower acquisition expenses and positive margin on the annuities business, partly offset by lower margins on unitized and protection business.
Revenue-generating investments
Revenue-generating investments increased 3% to GBP 53 billion, compared with year-end of 2011, primarily the result of higher equity markets.
UNITED KINGDOM GBP millions Notes Q1 2012 Q4 2011 % Q1 2011 % Underlying earnings beforetax by line of businessLife 15 30 (50) 21 (29)Pensions 11 (50) - (9) -Distribution (1) (2) 50 (2) 50Underlying earnings before tax 25 (22) - 10 150 Fair value items (2) 3 - (1) (100)Realized gains / (losses) - 6 - 25 -on investmentsImpairment charges - (1) - - -Other income / (charges) 7 5 (49) - (5) -Income before tax 28 (63) - 29 (3)Income tax attributable to (5) (4) (25) (1) -policyholder returnIncome before income tax 23 (67) - 28 (18)on shareholders returnIncome tax on shareholders return 16 (9) - 18 (11)Net income 39 (76) - 46 (15) Net income / (loss) attributable to:Equity holders of AEGON N.V. 39 (76) - 46 (15) Net underlying earnings 40 (40) - 33 21 Commissions and expenses 142 184 (23) 172 (17)of which operating expenses 62 98 (37) 98 (37) New life sales 8Life single premiums 600 648 (7) 841 (29)Life recurring premiums annualized 118 96 23 127 (7)Total recurring plus 1/10 single 178 161 11 211 (16) Life 17 17 - 16 6Pensions 161 144 12 195 (17)Total recurring plus 1/10 single 178 161 11 211 (16) Gross deposits (on and offbalance) by line of businessVariable annuities 7 8 (13) 17 (59)Total gross deposits 7 8 (13) 17 (59) Net deposits (on and off balance) by line of businessVariable annuities (1) 1 - 2 -Total net deposits (1) 1 - 2 -
REVENUE-GENERATING INVESTMENTS
Mar. 31, Dec. 31, 2012 2011 %
Revenue-generating investments (total) 52,761 51,052 3 Investments general account
8,298 8,313 -
Investments for account of policyholders 44,463 42,739 4
NEW MARKETS
- Underlying earnings before tax increase to EUR 88 million driven by asset management and Asia
- Net income amounts to EUR 48 million, including EUR 17 million charge for Hungarian bank tax
- New life sales decline 5% to EUR 80 million, the result of lower sales in Asia
- Strong deposits of EUR 3.1 billion driven by both retail and institutional inflows for asset management
Underlying earnings before tax In New Markets, underlying earnings before tax increased 29% to EUR 88 million. The increase is mainly the result of higher underlying earnings at AEGON Asset Management and Asia, only partly offset by lower underlying earnings from Central & Eastern Europe and Variable Annuities Europe. In addition, earnings were impacted by recurring charges for Corporate Center expenses to all operating units of EUR 2 million.
- Earnings from Central & Eastern Europe declined to EUR 23 million, primarily as a result of adverse currency movements. In Hungary, favorable claim experience was offset by lower margins on mortgage loans. In Poland, earnings declined as a result of the pension legislation changes implemented in 2011.
- Results from AEGON's operations in Asia increased to EUR 9 million as a result of higher investment income, favorable currency movements and implemented cost savings.
- Earnings from Spain & France increased 9% to EUR 25 million as result of business growth in Spain and the inclusion of earnings from Caixa Sabadell Vida.
- Earnings from Variable Annuities Europe declined to EUR 2 million which was mainly the result of higher expenses related to projects to position the company for future growth.
- Earnings from AEGON Asset Management increased significantly to EUR 29 million, which is the result of growth, increased fee income and timing differences in operating expenses.
Net income
Net income from AEGON's operations in New Markets declined 2% and amounted to EUR 48 million. Higher underlying earnings and positive results from fair value items were offset by higher impairment charges.
The first quarter also included a charge of EUR 17 million related to the full year Hungarian bank tax, while the comparable quarter last year had included a charge of EUR 20 million which was more than offset by a benefit of EUR 37 million related to a settlement of legal claims.
Return on capital
The return on average capital, excluding revaluation reserves, invested in AEGON's businesses in New Markets increased to 9.0%, mainly the result of higher net underlying earnings. Return on capital of AEGON's businesses excludes the benefit of leverage at the holding.
Operating expenses
Operating expenses declined 4% to EUR 143 million in the first quarter, mainly the result from timing differences in asset management operating expenses, which are expected to reverse in the remainder of the year.
Sales and deposits
New life sales declined 5% compared with the first quarter 2011 to EUR 80 million.
- In Central & Eastern Europe, new life sales amounted to EUR 27 million. At constant currencies, new life sales increased 7% as lower production in Hungary was more than offset by higher production in Poland and Turkey.
- In Asia, new life sales declined to EUR 15 million, mainly as a result of lower universal life sales in Hong Kong and Singapore after repricing and lower sales in India following regulatory changes. This was only partly offset by higher production in China due to a more focused approach towards distribution channels.
- New life sales in Spain & France remained level at EUR 38 million as the inclusion of Caixa Sabadell Vida offset the lower production at other joint venture partners in Spain.
New premium production from AEGON's general insurance in Central & Eastern Europe remained level and amounted to EUR 5 million. New premium production from AEGON's accident & health insurance in CEE and Asia remained level at EUR 10 million.
Gross deposits in New Markets amounted to EUR 3.1 billion and increased strongly compared to first quarter of 2011. Gross deposits in AEGON Asset Management increased substantially to EUR 2.8 billion as a result of good performance in both the retail and institutional segments. In the CEE gross deposits declined following pension legislation changes in Hungary and Poland.
Market consistent value of new business
The market consistent value of new business in New Markets decreased to EUR 24 million as a result of lower margins in Spain and the effect of lower interest rates on margins in Asia and for Variable Annuities Europe.
Revenue-generating investments
Revenue-generating investments increased 13% compared with the fourth quarter of 2011 to EUR 63 billion, mainly driven by the positive performance of capital markets.
REVENUE-GENERATING INVESTMENTS
Mar. 31, Dec. 31, 2012 2011 %
Revenue-generating investments (total) 63,288 56,156 13 Investments general account
4,957 4,782 4
Investments for account of policyholders 6,663 6,415 4 Off balance sheet investments third parties 51,668 44,959 15
NEW MARKETS c) EUR millions Notes Q1 2012 Q4 2011 % Q1 2011 % Underlying earnings before taxCentral Eastern Europe 23 26 (12) 26 (12)Asia 9 1 - - -Spain & France 25 24 4 23 9Variable Annuities Europe 2 1 100 5 (60)AEGON Asset Management 29 13 123 14 107Underlying earnings before tax 88 65 35 68 29 Fair value items 7 (10) - - -Realized gains / (losses) 2 2 - 3 (33)on investmentsImpairment charges (4) (25) 84 (2) (100)Other income / (charges) (18) 1 - 11 -Income before tax 75 33 127 80 (6)Income tax (27) (10) (170) (31) 13Net income 48 23 109 49 (2) Net income / (loss) attributable to:Equity holders of AEGON N.V. 48 21 129 49 (2)Non-controlling interests - 2 - - - Net underlying earnings 59 55 7 44 34 Commissions and expenses 208 217 (4) 203 2of which operating expenses 143 153 (7) 149 (4) New life sales 12Life single premiums 146 230 (37) 209 (30)Life recurring premiums annualized 66 60 10 63 5Total recurring plus 1/10 single 80 83 (4) 84 (5) Life 75 80 (6) 70 7Associates 5 3 67 14 (64)Total recurring plus 1/10 single 80 83 (4) 84 (5) Central Eastern Europe 27 26 4 27 -Asia 15 15 - 19 (21)Spain & France 38 42 (10) 38 -Total recurring plus 1/10 single 80 83 (4) 84 (5) New premium production 10 9 11 10 -accident and health insuranceNew premium production 5 7 (29) 5 -general insurance Gross deposits 12(on and off balance)Central Eastern Europe 116 153 (24) 182 (36)Asia 34 32 6 11 -Spain & France 10 34 (71) 8 25Variable Annuities Europe 120 118 2 131 (8)AEGON Asset Management 2,803 1,185 137 935 200Total gross deposits 3,083 1,522 103 1,267 143 Net deposits 12(on and off balance)Central Eastern Europe 42 144 (71) 108 (61)Asia 31 29 7 11 182Spain & France (26) (12) (117) (11) (136)Variable Annuities Europe 28 38 (26) 26 8AEGON Asset Management 1,289 (91) - (1,853) -Total net deposits 1,364 108 - (1,719) -APPENDIX II
MARKET CONSISTENT VALUE OF NEW BUSINESS
MC VNBEUR millions, after tax Q1 2012 Q4 2011 % Q1 2011 % Americas 47 (5) - 66 (29)The Netherlands 27 37 (27) 1 -United Kingdom 27 24 13 19 42New Markets 24 15 60 35 (31)Total 125 71 76 121 3 MODELED NEW BUSINESS, APE ANDDEPOSITS Premium business APEEUR millions Notes Q1 2012 Q4 2011 % Q1 2011 % 9Americas 279 284 (2) 218 28The Netherlands 70 173 (60) 75 (7)United Kingdom 216 187 16 237 (9)New Markets 129 108 19 120 8Total 694 752 (8) 650 7 Deposit business DepositsEUR millions Notes Q1 2012 Q4 2011 % Q1 2011 % 9Americas 4,935 3,449 43 4,340 14United Kingdom 8 10 (20) 19 (58)New Markets 180 251 (28) 215 (16)Total 5,123 3,710 38 4,574 12 MC VNB/PVNBP SUMMARY Premium business MC VNB PVNBP MC VNB/ MC VNB/ PVNBP APEEUR millions Notes Q1 2012 Q1 2012 % % 10Americas 32 1,212 2.6 11.3The Netherlands 27 816 3.3 38.5United Kingdom 27 1,408 1.9 12.4New Markets 23 962 2.4 18.1Total 109 4,398 2.5 15.7 Deposit business MC VNB PVNBP MC VNB/ MC VNB/ PVNBP DepositsEUR millions Notes Q1 2012 Q1 2012 % % 10Americas 15 7,424 0.2 0.3United Kingdom - 8 - -New Markets 1 280 0.2 0.4Total 16 7,712 0.2 0.3Notes:
1) For segment reporting purposes underlying earnings before tax, net underlying earnings,
commissions and expenses, operating expenses, income tax including associated companies, income before tax including associated companies and market consistent value of new business are calculated by consolidating on a proportionate basis the revenues and expenses of certain of our associated companies in Spain, India, Brazil and Mexico. We believe that our non-IFRS measures provide meaningful information about the underlying operating results of our business including insight into the financial measures that our senior management uses in managing our business. Among other things our senior management is compensated based in part on AEGON's results against targets using the non-IFRS measures presented here. While other insurers in our 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. T 2) Net income refers to net income attributable to equity holders of AEGON N.V. and minority
interest.
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 and the
revaluation reserve.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. All ratios
exclude AEGON's revaluation reserve.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 our
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 our IFRS based
operating expenses. Q1 2012 Employee expenses 504 Administrative expenses 262 Operating expenses for IFRS reporting 766 Operating expenses related to 15 associates Operating expenses in earnings release 781
12) New life sales, gross deposits and net deposits data include results of our 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. Refer to our Embedded
Value 2011 report for further details.
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) The comparative 2011 figures have been revised to reflect changes in AEGON's organization.
Businesses in Asia, which were previously managed by AEGON Americas, are included in the Asia line of business within the New Markets segment. This revision in financial reporting reflects changes in management of the organization, as AEGON's Asian operations are now managed from the company's regional head office in Hong Kong.
Currencies
Income statement items: average rate 1 EUR = USD 1.3101 (2011: USD 1.3663). Income statement items: average rate 1 EUR = GBP 0.8335 (2011: GBP 0.8523). Balance sheet items: closing rate 1 EUR = USD 1.3317 (2011: USD 1.4207; year-end 2011: USD 1.2982). Balance sheet items: closing rate 1 EUR = GBP 0.8335 (2011: GBP 0.8837; year-end 2011: GBP 0.8353).
ADDITIONAL INFORMATIONThe Hague, May 10, 2012Media conference call
7:45 a.m. CET: Podcast available after the call on www.aegon.com
Analyst & investor conference call
9:00 a.m. CET: Audio webcast on www.aegon.com
Call-in numbers
United States: +1 480 629 9673
United Kingdom: +44 207 153 2027
The Netherlands: +31 45 631 6902
Replay
Two hours after the conference call, a replay will be available on www.aegon.com.
Supplements
AEGON's Q1 2012 Financial Supplement and Condensed Consolidated Interim Financial Statements are available on www.aegon.com.
About AEGON
As an international life 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 over 25,000 people and have nearly 47 million customers across the globe.
Key figures - EUR Q1 2012 Full year 2011 Underlying earnings before 425 million 1.5 billiontaxNew life sales 445 million 1.8 billionGross deposits 11.0 billion 32 billion Revenue-generatinginvestments 437 billion 424 billion(end of period)Contact information Media Relations:Greg Tucker+ 31 (0) 70 344 8956gcc-ir@aegon.com Investor Relations:Willem van den Berg+ 31 (0) 70 344 8305ir@aegon.com www.aegon.com
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