TIDMAGN 
 
NOVEMBER 10, 2011 
 
Q3 2011 RESULTS 
 
AEGON withstands market turmoil with continued capital strength and resilient 
franchise 
 
 
Underlying earnings before tax of EUR 361 million 
 
  -   Compared with Q3 2010, earnings included the positive effect of updated 
      assumptions (EUR 35 million) offset by effects of lower equity markets and 
      interest rates (EUR 49 million), unfavorable currency movements (EUR 32 
      million) and higher provisioning for longevity (EUR 24 million) 
 
  -   Fair value items recorded a loss of EUR 288 million 
 
      o   Decision to lower interest rates assumptions resulted in charge of EUR 168 
      million 
 
      o   Other fair value items recorded EUR 120 million in losses due to lower 
      interest rates and equity markets, spread widening and increased volatility 
 
      o   Hedging programs performed well; higher reserve requirements fully offset by 
      hedging results 
 
  -   Net income amounts to EUR 60 million 
 
  -   Return on equity of 6.9%, or 8.1% excluding run-off businesses 
 
 
Strong gross deposits of EUR 10.5 billion; record net deposits* of EUR 4.4 billion 
 
  -   Total sales increase 2% to EUR 1.6 billion as a result of strong deposits 
 
  -   New life sales decline 18% to EUR 405 million due to product repricing 
      following continued focus on margins 
 
  -   Accident & health sales increase 5% to EUR 153 million mainly driven by the 
      Americas 
 
  -   Record deposits driven by pensions and variable annuities in the United States 
 
 
Capital position remains strong; cash flows impacted by lower interest rates 
 
  -   Strong capital position demonstrated by IGD solvency ratio of 190% 
 
  -   Excess capital of EUR 3.4 billion, of which EUR 1.2 billion maintained at 
      the holding - well above target 
 
  -   Capital base ratio increases to 73.6% - on track to achieve ratio of at 
      least 75% by the end of 2012 
 
  -   Operational free cash flows of EUR (678) million; higher reserve 
      requirements due to lower interest rates 
 
 
Statement of Alex Wynaendts, CEO 
 
"The challenging financial market conditions clearly impacted AEGON's earnings 
during the third quarter. Lower equity markets and the significant drop in 
interest rates, as well as a further weakening of the US dollar were the main 
drivers to the decline in underlying earnings. At the same time, AEGON's 
capital position remained strong and our franchise continues to be resilient. 
Despite the difficult environment, we achieved record net deposits in our key 
growth businesses. 
 
"In light of the continued low interest rate environment, we have revised our 
long-term interest rate assumptions which had a one-time significant negative 
impact on net income. It is clear that the actions we have taken to strengthen 
our balance sheet have enabled us to withstand the extreme market volatility 
we have seen in recent months, while also continuing to grow our business. 
AEGON today is in a strong position, with a solid capital position and the 
right strategy that will allow us to pursue our long-term ambitions." 
 
KEY PERFORMANCE INDICATORS 
 
amounts in EUR millions b)     Notes   Q3 2011 Q2 2011    %      Q3 2010    %    YTD 2011 YTD 2010    % 
 
Underlying earnings before tax     1     361       401   (10)     452     (20)    1,176      1,381   (15) 
 
Net income                         2      60       404   (85)     657     (91)      791      1,442   (45) 
 
Sales                              3   1,620      1,261   28    1,595      2      4,292      4,512    (5) 
 
Value of new business (VNB)        4      58        103  (44)     109     (47)      279        385   (28) 
 
Return on equity                   5    6.9%       8.1%  (15)    9.3%     (26)     7.4%       8.9%   (17) 
 
For notes see page 22. 
 
* Excluding run-off businesses. 
 
STRATEGIC HIGHLIGHTS 
 
- Sale of closed UK life insurance business Guardian for a total consideration 
of GBP 275 million 
 
- Restructuring of AEGON The Netherlands accelerated to reduce cost base by 
EUR 100 million 
 
- Appointment of Simon Skinner as CEO of AEGON Ireland, AEGON's European 
variable annuity platform 
 
Sustainable earnings growth with an improved risk-return profile 
 
AEGON continues to implement its transformational program aimed at delivering 
sustainable earnings growth with an improved risk-return profile. The company 
set the following targets*: 
 
- 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 businesses to 30%-35% of underlying earnings before tax by 
2015; and 
 
- Increase normalized operational free cash flow by 30% by 2015. 
 
* Main economic assumptions embedded in targets: annual gross equity market 
return of 9%, 10 year US interest rate of 5.25% in 2015 and EUR/USD rate of 
1.35. 
 
AEGON's ambition 
AEGON's ambition 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 and 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. 
 
AEGON's AMBITION 
 
To be a leader in all our chosen markets by 2015 
 
AEGON'S STRATEGIC PRIORITIES 
 
- Optimize portfolio 
 
- Enhance customer loyalty 
 
- Deliver operational excellence 
 
- Empower employees 
 
Optimize portfolio 
 
In line with its strategic objective to optimize its portfolio of businesses, 
AEGON has decided to sell its UK-based Guardian life and pension business to 
Cinven, a European private equity group. Guardian, which manages over 300,000 
life insurance policies, has been closed to new business since 2001 and was 
sold for a total cash consideration of GBP 275 million, equivalent to 
approximately one time book value. AEGON Asset Management has entered into a 
long-term agreement with Cinven and will continue to manage the assets of 
Guardian which total GBP 7.4 billion. The transaction is expected to close in 
the fourth quarter of 2011. 
 
In China, AEGON's joint-venture with CNOOC opened its 10th regional branch in 
Fujian province, increasing its potential customer base to over 500 million 
people. AEGON-CNOOC is ranked among the top ten foreign insurance companies in 
China. 
 
In Spain, AEGON is positioning itself to grow with some of its current 
partners and terminate its relationship with others. Recently, AEGON has 
closed an agreement with one of the Banca Cívica partnering savings banks, 
Caja Burgos, and has launched an exit process from its alliance with Caja de 
Ahorros del Mediterráneo (CAM), which has led to an arbitration process. AEGON 
will closely monitor the course of events regarding other bancassurance 
partners in Spain. 
 
Enhance customer loyalty 
 
AEGON's net promoter score (NPS) program is being rolled out across the group 
and brings the company closer to its goal of integrating NPS in many of its 
businesses and enhancing customer loyalty. Approximately half of AEGON's 
businesses have begun using the program to gain direct customer feedback, 
respond to insights and adapt processes. Plans are in place to further 
increase the number of business units using NPS by the end of 2012 to support 
the company in its ambition of becoming the most recommended provider in the 
sector. 
 
Deliver operational excellence 
 
AEGON announced plans to make its business in the Netherlands more agile and 
better positioned to respond to changing conditions and opportunities in the 
Dutch market. The restructuring of AEGON's Dutch business is an acceleration 
of previously announced strategic plans. Restructuring charges of EUR 60 
million are included in the third quarter 2011 earnings. 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 
majority of the cost savings are expected to be achieved in 2012. 
 
In the United Kingdom, AEGON is on track to implement a new operating model 
aimed at reducing costs by 25% by the end of this year. The program to 
restructure the business aims to deliver GBP 80 million in expense savings of 
which to date GBP 71 million has been implemented. 
 
In India, AEGON Religare instituted automated underwriting and risk analysis. 
The new system improves turn-around time, minimizes human mistakes, cultivates 
efficiency and contributes to reduced implementation and recurring costs. The 
business won an award for companies that demonstrate strategic and operational 
excellence in information technology. 
 
FINANCIAL OVERVIEW c) 
 
EUR millions                        Notes  Q3 2011  Q2 2011     % Q3 2010    % YTD 2011 YTD 2010    % 
 
Underlying earnings before tax 
Americas                                       310      325   (5)     355 (13)      982    1,090 (10) 
The Netherlands                                 68       74   (8)      97 (30)      223      298 (25) 
United Kingdom                                   9       10  (10)      28 (68)       31       78 (60) 
New markets                                     43       59  (27)      55 (22)      159      141   13 
Holding and other                             (69)     (67)   (3)    (83)   17    (219)    (226)    3 
Underlying earnings before tax                 361      401  (10)     452 (20)    1,176    1,381 (15) 
 
Fair value items                             (288)     (23)     -     204    -    (396)      191    - 
Realized gains / (losses) on                   102      204  (50)     129 (21)      397      403  (1) 
investments 
Impairment charges                           (132)    (100)  (32)    (92) (43)    (294)    (319)    8 
Other income / (charges)                      (54)     (16)     -    (14)    -     (73)     (51) (43) 
Run-off businesses                             (5)       10     -     (7)   29       27     (35)    - 
Income before tax                             (16)      476     -     672    -      837    1,570 (47) 
Income tax                                      76     (72)     -    (15)    -     (46)    (128)   64 
Net income                                      60      404  (85)     657 (91)      791    1,442 (45) 
 
Net income / (loss) attributable 
to: 
Equity holders of AEGON N.V.                    60      403  (85)     657 (91)      790    1,441 (45) 
Non-controlling interests                        -        1     -       -    -        1        1    - 
 
Net underlying earnings                        308      339   (9)     374 (18)      980    1,069  (8) 
 
Commissions and expenses                     1,575    1,500     5   1,525    3    4,588    4,486    2 
of which operating expenses            11      886      847     5     835    6    2,570    2,488    3 
 
New life sales 
Life single premiums                         1,073    1,189  (10)   1,650 (35)    3,988    5,491 (27) 
Life recurring premiums annualized             298      312   (4)     329  (9)      938    1,002  (6) 
Total recurring plus 1/10 single               405      431   (6)     494 (18)    1,337    1,551 (14) 
 
New life sales 
Americas                               12      110      104     6     138 (20)      327      379 (14) 
The Netherlands                                 32       40  (20)      32    -      137      135    1 
United Kingdom                                 199      217   (8)     264 (25)      663      837 (21) 
New markets                            12       64       70   (9)      60    7      210      200    5 
Total recurring plus 1/10 single               405      431   (6)     494 (18)    1,337    1,551 (14) 
 
New premium production accident and            153      145     6     146    5      457      442    3 
health insurance 
New premium production general                  12       14  (14)      14 (14)       39       43  (9) 
insurance 
 
Gross deposits (on and off balance) 
Americas                               12    7,376    5,014    47   4,705   57   18,019   15,261   18 
The Netherlands                                584      442    32     525   11    1,488    1,892 (21) 
United Kingdom                                  11       17  (35)      16 (31)       47       71 (34) 
New markets                            12    2,525    1,242   103   4,161 (39)    5,034    7,541 (33) 
Total gross deposits                        10,496    6,715    56   9,407   12   24,588   24,765  (1) 
 
Net deposits (on and off balance) 
Americas                               12    2,840      426     -     545    -    3,033    1,838   65 
The Netherlands                                 54    (113)     -    (83)    -    (174)       39    - 
United Kingdom                                   1       14  (93)       2 (50)       17       41 (59) 
New markets                            12    1,502  (2,487)     -   3,293 (54)  (2,704)    3,601    - 
Total net deposits excluding                 4,397  (2,160)     -   3,757   17      172    5,519 (97) 
run-off businesses 
Run-off businesses                         (1,121)    (527) (113) (1,091)  (3)  (2,528)  (5,150)   51 
Total net deposits                           3,276  (2,687)     -   2,666   23  (2,356)      369    - 
 
REVENUE-GENERATING INVESTMENTS 
 
                                         Sept. 30, June 30, 
                                              2011     2011     % 
Revenue-generating investments             404,254  391,276     3 
(total) 
Investments general account                143,006  132,837     8 
Investments for account of                 139,599  142,672   (2) 
policyholders 
Off balance sheet investments third        121,649  115,767     5 
parties 
 
 
OPERATIONAL HIGHLIGHTS 
 
Underlying earnings before tax 
 
AEGON's underlying earnings before tax declined to EUR 361 million in the third quarter. 
The 20% decline, compared with the same quarter last year, was mainly due to lower 
interest rates and equity markets, unfavorable currency exchange rate movements and 
higher provisioning for longevity. 
 
Underlying earnings from the Americas decreased to EUR 310 million. Consistent 
with AEGON's strategy, earnings from fee-based businesses grew compared with 
the third quarter last year. However, they were more than offset by a weaker 
US dollar against the euro and lower earnings from fixed annuities as this 
line of business is de-emphasized. Earnings included the positive effect of 
updated assumptions of EUR 35 million mainly related to mortality. 
 
In the Netherlands, underlying earnings decreased to EUR 68 million as a 
result of higher provisioning for longevity of EUR 24 million and investments 
in developing new distribution capabilities of EUR 5 million. 
 
In the United Kingdom, underlying earnings declined to EUR 9 million. The 
third quarter included costs of EUR 14 million related to an ongoing program 
to correct historical issues within customer policy records and investments in 
developing new propositions (EUR 3 million). The company is on track to 
finalize the program in the fourth quarter of 2011. In addition, earnings of 
Guardian, the recently sold closed book of life insurance business, were 
no longer reflected in underlying earnings (EUR 6 million). 
 
Underlying earnings from New Markets decreased to EUR 43 million, mainly as a 
result of lower earnings from Central & Eastern Europe due to lower investment 
income and the negative impact from pension legislation changes. In addition, 
the comparable quarter last year included a one-time benefit of EUR 5 million 
from Variable Annuities Europe. 
 
Total holding costs amounted to EUR 69 million as net interest results were 
higher than in the comparable quarter a year ago. 
 
Net income 
 
Net income decreased to EUR 60 million due mainly to a significant decline in 
results on fair value items. 
 
Fair value items 
 
To reflect current market circumstances, AEGON has lowered its long-term assumption 
for 10-year US Treasury yields by 50 bps to 4.75% (graded uniformly from current yields 
over the next five years) and lowered the 90-day rate to 0.2% for the next two 
years followed by a three year grade to 3%. No change has been made to the 
long-term credit spread or default assumptions. In addition, AEGON has lowered 
its assumed return for separate account bond fund returns by 200 bps to 4% 
over the next five years, followed by a return of 6% thereafter. The bond fund 
return is a gross assumption from which asset management and policy fees are 
deducted to determine the policyholder return. In total, these assumption 
changes led to a charge of EUR 168 million. In addition, lower interest rates, 
spread widening and lower equity markets affected other fair value items which 
resulted in losses of EUR 120 million. In total, fair value items recorded a 
loss of EUR 288 million during the third quarter. 
 
Realized gains on investments 
 
In the third quarter, realized gains on investments amounted to EUR 102 
million and were the result of normal trading in the investment portfolio and 
the divestment of the life reinsurance activities. 
 
Impairment charges 
 
Impairment charges amounted to EUR 132 million. In the United States, 
impairments of EUR 76 million were linked to residential mortgage-backed 
securities and in the United Kingdom to financial holdings of Portuguese and 
Greek banks (EUR 22 million). Impairments in New Markets of EUR 29 million 
were largely attributable to the effect of new legislation in Hungary, related 
to Swiss franc denominated mortgages, affecting the mortgage portfolio. 
 
Other charges 
 
Other charges amounted to EUR 54 million and are mostly related to 
restructuring provisions in the Netherlands (EUR 60 million) and in the United 
Kingdom (EUR 15 million). These charges are partly offset by UK policyholder 
tax with an equal and opposite charge in the tax income line of EUR 20 
million. 
 
Run-off businesses 
 
The results of run-off businesses amounted to a loss of EUR 5 million as a 
lower amortization yield paid on internally transferred assets related to the 
institutional spread-based business and favorable mortality results for 
pay-out annuities were offset by lower results from BOLI/COLI and transaction 
costs related to the divestment of the life reinsurance activities. 
 
Income tax 
 
Net income for the quarter contained a tax benefit of EUR 76 million. A 
benefit of EUR 46 million in the United States related to the utilization of 
losses for which previously no deferred tax asset was recognized. In the 
United Kingdom, a benefit of EUR 24 million was recorded as a result of the 
tax rate reduction as per April 2012, enacted in July 2011. 
 
Return on equity 
 
In the first nine months of 2011, the return on equity of AEGON's ongoing 
business amounted to 8.7%. Including capital allocated to the run-off 
businesses, return on equity amounted to 7.4%. 
 
Operating expenses 
 
In the third quarter, operating expenses increased 6% to EUR 886 million due 
mainly to higher restructuring charges. Excluding restructuring charges, 
employee benefit plans and at constant currencies, operating expenses 
increased 1% during the first nine months of 2011. 
 
Sales and deposits 
 
AEGON's total sales increased 2% to EUR 1.6 billion mainly as a result of 
strong pension deposits. New life sales declined, mainly as a result of lower 
single premium production in the United Kingdom and the Americas following 
repricing of products, partly offset by growth in Central & Eastern Europe. 
 
Gross deposits of EUR 10.5 billion were supported by increased pension and 
variable annuity deposits in the United States and continued strong 
third-party asset management inflows. 
 
Value of new business 
 
Compared with the third quarter 2010, the value of new business declined 
considerably to EUR 58 million, reflecting current market circumstances of 
lower interest rates and higher volatility and lower new life sales partly 
offset by higher deposits. AEGON prices its products on an economic framework 
basis and will start to publish value of new business on that basis as of the 
first quarter of 2012. 
 
Revenue-generating investments 
 
Revenue-generating investments rose 3% compared with the end of the second 
quarter of 2011 to EUR 404 billion. The positive effect of strong inflows and 
lower interest rates on asset balances was only partly offset by the effect of 
lower equity markets. 
 
Capital management 
 
In August, Standard & Poor's positively revised their outlook on AEGON and its 
subsidiaries to stable from negative and affirmed the `AA-' ratings on the 
core operating entities. At the same time, Moody's affirmed the A3 senior debt 
of AEGON and upgraded the subordinated rating of AEGON to Baa1 from Baa2. 
Moody's also upgraded the outlook on all ratings to stable from negative. In 
the opinion of the rating agencies, AEGON's balance sheet is more resilient to 
stress as a result of an improved risk profile. In addition, AEGON delivered 
on its strategy with the full repayment to the Dutch State in June 2011 and 
the divestment of its life reinsurance activities in August 2011. 
 
AEGON's core capital, excluding revaluation reserves, amounted to EUR 16.9 
billion, equivalent to 73.6%6 of the company's total capital base at the end 
of the third quarter. AEGON aims the proportion of core capital to be at least 
75% of total capital by the end of 2012. 
 
Shareholders' equity increased to EUR 19.4 billion as a result of the 
appreciation of the US dollar against the euro and a significant increase in 
the revaluation reserves during the third quarter. Shareholders' equity per 
common share, excluding preference capital, amounted to EUR 9.21 at September 
30, 2011. 
 
The revaluation reserves at September 30, 2011 increased to EUR 2.6 billion, 
mainly the result of a significant decrease in risk-free interest rates which 
had a positive effect on the value of fixed income securities, partly offset 
by spread widening. In addition, the foreign currency translation reserves 
improved, primarily the result of a strengthening of the US dollar against the 
euro. 
 
AEGON aims to maintain at least 1.5 times holding expenses as a buffer at the 
holding, currently equivalent to approximately EUR 900 million. During the 
third quarter, excess capital in the holding increased to EUR 1.2 billion as a 
result of dividends received from business units. 
 
At September 30, 2011, AEGON's Insurance Group Directive (IGD) ratio amounted 
to 190%, a decrease from the level of 200% at the end of the second quarter. 
 
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 posted negative operational free cash flows of EUR 678 million during 
the third quarter of 2011. Operational free cash flows were severely affected 
in the United States as a result mainly of the sharp decline in interest 
rates. Excluding the impact of financial markets in the third quarter, 
operational free cash flows totaled EUR 397 million. Operational free cash 
flows represent distributable earnings generation of the business units. The 
impact of capital preservation initiatives or proceeds from disposals are not 
included in the reported operational free cash flows. 
 
APPENDIX I -- Americas --The Netherlands --United Kingdom --New Markets 
 
FINANCIAL OVERVIEW, Q3 2011 GEOGRAPHICALLY c) 
 
                                                                                   Holding, 
                                                                                      other 
                                                         The   United      New activities & 
EUR millions                            Americas Netherlands  Kingdom  Markets eliminations Total 
 
Underlying earnings before tax by line 
of business 
Life                                         166          47       20       17            -   250 
Individual savings and retirement             88           -        -      (4)            -    84 
products 
Pensions                                      56          24     (10)        2            -    72 
Non-life                                       -         (1)        -        4            -     3 
Distribution                                   -         (2)      (1)        -            -   (3) 
Asset Management                               -           -        -       15            -    15 
Other                                          -           -        -        -         (69)  (69) 
Share in underlying earnings before tax        -           -        -        9            -     9 
of associates 
Underlying earnings before tax               310          68        9       43         (69)   361 
 
Fair value items                           (275)          25      (8)     (16)         (14) (288) 
Realized gains / (losses) on                  40          59        3        -            -   102 
investments 
Impairment charges                          (76)         (5)     (22)     (29)            - (132) 
Other income / (charges)                       4        (61)        5      (2)            -  (54) 
Run-off businesses                           (5)           -        -        -            -   (5) 
Income before tax                            (2)          86     (13)      (4)         (83)  (16) 
Income tax                                    72        (23)       13      (9)           23    76 
Net income                                    70          63        -     (13)         (60)    60 
 
Net underlying earnings                      242          55       30       26         (45)   308 
 
 
EMPLOYEE NUMBERS 
 
                                        Sept.30,    June 30, 
                                            2011        2011 
 
Employees excluding agents                22,781      23,639 
Agents                                     3,024       2,892 
Total number of employees excluding       25,805      26,531 
Associates 
AEGON's share of employees (including      4,125       3,561 
agents) in Associates 
Total                                     29,930      30,092 
 
 
AMERICAS 
 
- Underlying earnings before tax amount to USD 437 million 
 
- Net income decreases to USD 101 million, mainly driven by lower results from 
fair value items 
 
- New life sales decline to USD 155 million as a result of lower universal 
life sales due to repricing 
 
- Accident & health sales increase to USD 206 million, mainly the result of 
affinity markets 
 
- Gross deposits increase to USD 10.4 billion driven by strong pension and 
variable annuity deposits 
 
Underlying earnings before tax 
 
Underlying earnings from the Americas decreased 5% to USD 437 million for the 
third quarter 2011, the result mainly of lower fixed annuity earnings. 
 
- Earnings from Life & Protection in the Americas amounted to USD 219 million 
and were level compared to the same quarter last year. Earnings included USD 
65 million as a result of favorable DAC unlocking related to mortality offset 
partially by the effects of lower interest rates of USD 18 million. Higher 
Long Term Care provisions in addition to a charge relating to Executive Life 
of New York also contributed unfavorably to the results (USD 15 million). 
 
- Individual Savings & Retirement earnings decreased to USD 123 million. Fixed 
annuity earnings decreased to USD 61 million as a result of lower spreads and 
declining asset balances as the product is de-emphasized. Earnings from 
variable annuities improved to USD 57 million, compared to the third quarter 
last year, and included charges related to policyholder behavior assumption 
updates of USD 12 million. Earnings from retail mutual funds increased as a 
result of higher account balances and amounted to USD 5 million. 
 
- Earnings from Employer Solutions & Pensions remained level at USD 79 million 
as a reserve release of USD 13 million in the comparable quarter last year 
offset continued growth of the business. 
 
- Earnings from Canada amounted to USD 17 million and the joint-ventures in 
Latin America reported a loss of USD 1 million. 
 
Net income 
 
Net income from AEGON's businesses in the Americas decreased to USD 101 
million in the third quarter. The main driver of the decline was negative 
results from fair value items partly offset by tax benefits. 
 
The loss of USD 387 million for fair value items included USD 237 million for 
a change in long-term economic assumptions related to lower interest rates. 
AEGON has lowered its long-term assumption for 10 year US Treasury yields by 
50 bps to 4.75% (graded uniformly from current yields over the next five 
years) and lowered the 90 day rate to 0.2% for the next two years followed by 
a three year grade to 3%. No change has been made to the long term credit 
spread or default assumptions. In addition, AEGON has lowered its assumed 
return for separate account bond fund returns by 200 bps to 4% over the next 
five years, followed by a return of 6% thereafter. The bond fund return is a 
gross assumption from which asset management and policy fees are deducted to 
determine the policyholder return. 
 
Fair value of assets resulted in a loss of USD 92 million for the period, 
primarily due to lower than expected alternative asset performance and credit 
derivatives due to spread widening. Variable annuity hedge programs performed 
well during the volatile quarter and contributed USD 1.4 billion in gains 
which largely offset higher reserves and claims on the guarantee liabilities. 
 
Gains on investments of USD 57 million were primarily realized as a result of 
the divestment of the life reinsurance activities. Net impairments amounted to 
USD 106 million and were largely linked to one residential mortgage-backed 
security. 
 
The results of run-off businesses amounted to a loss of USD 7 million as lower 
amortization yield paid on internally transferred assets related to the 
institutional spread-based business and favorable mortality on pay-out 
annuities was offset by transaction costs related to the divestment of the 
life reinsurance activities. 
 
Net income for the quarter included a tax benefit of USD 101 million. A 
benefit of USD 69 million related to the utilization of losses for which 
previously no deferred tax asset was recognized. 
 
Return on capital 
 
During the first nine months of 2011, the return on average capital, excluding 
revaluation reserves, invested in AEGON's business in the Americas amounted to 
7.0%. Excluding the capital allocated to the run-off businesses, the return on 
capital in the Americas would amount to 8.7%. Return on capital of AEGON's 
businesses excludes the benefit of leverage at the holding. 
 
Operating expenses 
 
Operating expenses increased 7% to USD 506 million, mainly as a result of 
expenses related to the completion of the divestment of the life reinsurance 
activities. Excluding restructuring charges and employee benefit plan 
expenses, operating expenses decreased 1% as a result of expense reduction 
programs. 
 
Sales 
 
New life sales declined to USD 155 million, mainly the effect of the 
discontinuance of single premium universal life sales in the bank channel 
during the second half of 2010, as well as repricing of certain universal life 
products this year to reflect the current interest rate environment. 
 
New premium production for accident & health insurance increased to USD 206 
million, primarily the result of growth in the employer benefits and affinity 
marketing businesses. 
 
Gross deposits increased to USD 10.4 billion as a result of higher fee-based 
deposits. Pension deposits increased as result of higher takeover and annual 
deposits in the retirement plan space, in addition to a strong increase in 
stable value deposits. Stable value balances amount to USD 60 billion and are 
expected to be maintained around this level. 
 
Variable annuity sales continued to be strong, primarily as a result of the 
Retirement Income Max rider. A new, recently launched GLWB rider is expected 
to improve sales further in the direct channel. AEGON is currently in the 
process of repricing its variable annuity offerings to reflect the current low 
interest rate environment and subsequent higher hedging costs in its riders. 
 
Net deposits for the ongoing businesses totaled 
USD 4 billion as net inflows for the stable value and retirement plan 
businesses and variable annuities were only partly offset by retail mutual 
fund and fixed annuity outflows. AEGON is de-emphasizing sales of fixed 
annuities as part of a strategic repositioning and incurs net outflows as a 
result. 
 
Value of new business 
 
Value of new business decreased to USD 34 million as the effect of increased 
retirement and stable value deposits was more than offset by a lower 
contribution from variable annuities as a result of increased hedging costs in 
the current interest rate environment. 
 
Revenue-generating investments 
 
Revenue-generating investments declined to 
USD 315 billion as compared to the second quarter of 2011. The decline is 
mainly the result of the effect of lower equity markets on unit-linked and off 
balance sheet assets. 
 
AMERICAS c) 
 
USD millions                        Notes  Q3 2011  Q2 2011     % Q3 2010    % YTD 2011 YTD 2010    % 
 
Underlying earnings before tax by line 
of business 
Life and protection                            219      194    13     220    -      608      655  (7) 
Fixed annuities                                 61       77  (21)     112 (46)      228      358 (36) 
Variable annuities                              57       87  (34)      29   97      237      148   60 
Retail mutual funds                              5        6  (17)       3   67       17        3    - 
Individual savings and retirement              123      170  (28)     144 (15)      482      509  (5) 
products 
Employer solutions & pensions                   79       83   (5)      79    -      243      227    7 
Canada                                          17       19  (11)      13   31       47       39   21 
Latin America                                  (1)        3     -       2    -        -        4    - 
Underlying earnings before tax                 437      469   (7)     458  (5)    1,380    1,434  (4) 
 
Fair value items                             (387)     (72)     -     117    -    (476)     (42)    - 
Realized gains / (losses) on                    57       71  (20)     121 (53)      163      175  (7) 
investments 
Impairment charges                           (106)     (76)  (39)   (111)    5    (262)    (375)   30 
Other income / (charges)                         6      (5) -           -    -        1    (140)    - 
Run- off businesses                            (7)       15     -     (9)   22       38     (46)    - 
Income before tax                                -      402     -     576    -      844    1,006 (16) 
Income tax                                     101     (60)     -      52   94     (42)       94    - 
Net income                                     101      342  (70)     628 (84)      802    1,100 (27) 
 
Net income / (loss) attributable 
to: 
Equity holders of AEGON N.V.                   101      342  (70)     628 (84)      802    1,100 (27) 
 
Net underlying earnings                        343      368   (7)     339    1    1,057    1,058    - 
 
Commissions and expenses                     1,255    1,210     4   1,167    8    3,674    3,483    5 
of which operating expenses                    506      502     1     472    7    1,500    1,457    3 
 
New life sales                         12 
Life single premiums                           113       78    45     363 (69)      338      820 (59) 
Life recurring premiums annualized             144      143     1     143    1      426      417    2 
Total recurring plus 1/10 single               155      151     3     179 (13)      460      499  (8) 
 
Life & protection                              117      114     3     147 (20)      352      402 (12) 
Employer solutions & pensions                    6        7  (14)       5   20       19       17   12 
Canada                                          15       18  (17)      15    -       50       46    9 
Latin America                                   17       12    42      12   42       39       34   15 
Total recurring plus 1/10 single               155      151     3     179 (13)      460      499  (8) 
 
New premium production accident and            206      201     2     179   15      606      543   12 
health insurance 
 
Gross deposits (on and off balance)    12 
by line of business 
Life & protection                                2        3  (33)       2    -        8        8    - 
Fixed annuities                                 87       71    23     164 (47)      241      473 (49) 
Variable annuities                           1,338    1,401   (4)     956   40    3,918    2,793   40 
Retail mutual funds                            618      765  (19)     861 (28)    2,158    2,794 (23) 
Individual savings & retirement              2,043    2,237   (9)   1,981    3    6,317    6,060    4 
products 
Employer solutions & pensions                8,282    4,913    69   3,975  108   18,749   13,503   39 
Canada                                          73       83  (12)     100 (27)      253      504 (50) 
Total gross deposits                        10,400    7,236    44   6,058   72   25,327   20,075   26 
 
Net deposits (on and off balance)      12 
by line of business 
Life & protection                             (10)     (10)     -    (12)   17     (34)     (39)   13 
Fixed annuities                              (728)    (810)    10   (584) (25)  (2,339)  (1,780) (31) 
Variable annuities                             489      471     4     225  117    1,180      419  182 
Retail mutual funds                          (234)      (5)     -     233    -    (289)    1,008    - 
Individual savings & retirement              (473)    (344)  (38)   (126)    -  (1,448)    (353)    - 
products 
Employer solutions & pensions                4,514    1,048     -   1,030    -    6,047    3,680   64 
Canada                                        (39)    (105)    63   (191)   80    (302)    (870)   65 
Total net deposits excluding                 3,992      589     -     701    -    4,263    2,418   76 
run-off businesses 
Run-off businesses                         (1,580)    (772) (105) (1,384) (14)  (3,554)  (6,774)   48 
Total net deposits                           2,412    (183)     -   (683)    -      709  (4,356)    - 
 
 
REVENUE-GENERATING INVESTMENTS 
 
                                         Sept. 30, June 30, 
                                              2011     2011     % 
Revenue-generating investments             315,362  324,919   (3) 
(total) 
Investments general account                122,645  121,723     1 
Investments for account of                  76,217   83,383   (9) 
policyholders 
Off balance sheet investments third        116,500  119,813   (3) 
parties 
 
 
THE NETHERLANDS 
 
- Underlying earnings before tax decrease to EUR 68 million due to higher 
provisioning for longevity 
 
- Net income amounts to EUR 63 million as a result of restructuring charges 
and lower fair value items 
 
- New life sales remain level at EUR 32 million 
 
Underlying earnings before tax 
 
Underlying earnings from AEGON's operations in the Netherlands amounted to EUR 
68 million, a decrease compared to the third quarter 2010. This was mainly due 
to lower earnings in Life & Savings and higher provisioning for longevity in 
Pensions. 
 
- Earnings from AEGON's Life & Savings operations in the Netherlands of EUR 47 
million were down 8% compared to the third quarter of last year as lower 
investment income in life insurance was only partly offset by better interest 
results in Savings. 
 
- Earnings from the Pension business declined to EUR 24 million as additional 
provisioning for longevity of EUR 24 million more than offset other positive 
technical results. 
 
- Non-life recorded a loss of EUR 1 million, mainly as a result of costs 
related to a project to increase efficiencies, which offset improved claim 
experience. 
 
- Losses from the distribution businesses amounted to EUR 2 million, mainly 
the result of business development initiatives. 
 
Net income 
 
Net income from AEGON's businesses in the Netherlands declined to EUR 63 
million. This was mainly a result of lower fair value items, which amounted to 
EUR 25 million, driven by a decline in the fair value of guarantees net of 
hedging. Gains on investments totaled EUR 59 million for the quarter and were 
a result of normal trading activity in the portfolio. Other charges included 
charges of EUR 60 million related to the restructuring of AEGON's businesses 
in the Netherlands. 
 
Interest rate and equity hedge programs performed well during the volatile 
quarter as the EUR 2.6 billion increase in value of guarantees was fully 
offset by hedging results. 
 
Operating expenses 
 
Operating expenses increased to EUR 242 million in the third quarter of 2011, 
mainly as a result of restructuring charges of EUR 60 million and investments 
in the further development of new distribution capabilities. On a comparable 
basis, expenses remained level. 
 
During the quarter, AEGON announced plans to make its business in the Netherlands 
more agile and better positioned to respond to changing conditions and opportunities 
in the Dutch market. The restructuring of AEGON's Dutch business is an 
acceleration of previously announced strategic plans. The reorganization 
program and other initiatives will result in a reduction of the cost base by 
EUR 100 million as compared to the cost base for 2010. Most of the cost 
savings are expected to be achieved in 2012. 
 
Sales and deposits 
 
New life sales remained level at EUR 32 million during the third quarter of 
2011. Individual life sales amounted to EUR 17 million. Individual life single 
premium production benefited from the focus on high service levels and the 
exit of some competitors from the market. Individual life recurring premium 
was lower as mortgage production slowed down. Pension sales increased 7% to 
EUR 15 million. 
 
Premium production for accident & health and non-life products amounted to EUR 
6 million and remained level with the third quarter of 2010. 
 
Gross savings deposits increased 40% to EUR 584 million after AEGON Bank 
launched a marketing campaign and became more competitive in savings. 
 
Value of new business 
 
The value of new business declined to EUR 14 million, mainly as a result of 
lower volumes and higher mortgage-related funding costs. 
 
Revenue-generating investments 
 
Revenue-generating investments increased 2% to EUR 61 billion compared with 
the previous quarter as the impact from lower interest rates was only partly 
offset by the negative impact of lower equity markets. 
 
Update KoersPlan 
 
As previously disclosed, in July 2011 the Amsterdam Court of Appeal ruled with 
respect to a specific AEGON unit-linked product, the `KoersPlan'-product. 
AEGON believes the ruling was wrongly decided, and in October 2011 AEGON 
appealed the decision with the Supreme Court of the Netherlands. However, if 
the Supreme Court were to confirm the decision taken by the Amsterdam Court of 
Appeal and the principles underlying such decision were applied to AEGON's 
entire KoersPlan-portfolio (instead of solely to the holders of 
KoersPlan-products who are plaintiffs in the pending litigation), AEGON 
currently estimates the financial effect to be approximately EUR 150 million 
after tax. The actual amount may vary based on uncertainties related to the 
application of any decision to individual customers, equity market 
fluctuations as well as interest rates movements. AEGON expects the Supreme 
Court to issue a decision during the second half of 2012. 
 
THE NETHERLANDS 
 
EUR millions                        Notes  Q3 2011  Q2 2011     % Q3 2010    % YTD 2011 YTD 2010    % 
 
Underlying earnings before tax by line 
of business 
Life and Savings                                47       55  (15)      51  (8)      145      132   10 
Pensions                                        24       16    50      42 (43)       62      118 (47) 
Non life                                       (1)        -     -       3    -        4       29 (86) 
Distribution                                   (2)      (1) (100)       2    -        8       19 (58) 
Share in underlying earnings before              -        4     -     (1)    -        4        -    - 
tax of associates 
Underlying earnings before tax                  68       74   (8)      97 (30)      223      298 (25) 
 
Fair value items                                25        2     -     184 (86)     (33)      343    - 
Realized gains / (losses) on                    59      142  (58)      35   69      236      154   53 
investments 
Impairment charges                             (5)      (3)  (67)     (4) (25)     (10)     (11)    9 
Other income / (charges)                      (61)     (11)     -       -    -     (80)       33    - 
Income before tax                               86      204  (58)     312 (72)      336      817 (59) 
Income tax                                    (23)     (35)    34    (75)   69     (65)    (187)   65 
Net income                                      63      169  (63)     237 (73)      271      630 (57) 
 
Net income / (loss) attributable 
to: 
Equity holders of AEGON N.V.                    63      169  (63)     237 (73)      271      630 (57) 
 
Net underlying earnings                         55       67  (18)      88 (38)      188      222 (15) 
 
Commissions and expenses                       311      278    12     248   25      861      775   11 
of which operating expenses                    242      201    20     179   35      632      543   16 
 
New life sales 
Life single premiums                           210      217   (3)     176   19      884      814    9 
Life recurring premiums annualized              12       18  (33)      14 (14)       49       54  (9) 
Total recurring plus 1/10 single                32       40  (20)      32    -      137      135    1 
 
Life and Savings                                17       25  (32)      18  (6)       68       66    3 
Pensions                                        15       15     -      14    7       69       69    - 
Total recurring plus 1/10 single                32       40  (20)      32    -      137      135    1 
 
New premium production accident and              6        4    50       5   20       20       20    - 
health insurance 
New premium production general                   6        7  (14)       6    -       21       20    5 
insurance 
 
Gross deposits (on and off balance) 
by line of business 
Life and Savings                               584      442    32     416   40    1,408    1,633 (14) 
Pensions                                         -        -     -     109    -       80      259 (69) 
Total gross deposits                           584      442    32     525   11    1,488    1,892 (21) 
 
Net deposits (on and off balance) 
by line of business 
Life and Savings                                54    (113)     -   (139)    -    (201)      (7)    - 
Pensions                                         -        -     -      56    -       27       46 (41) 
Total net deposits                              54    (113)     -    (83)    -    (174)       39    - 
 
 
REVENUE-GENERATING INVESTMENTS 
 
                                         Sept. 30, June 30, 
                                              2011     2011     % 
Revenue-generating investments              61,092   60,005     2 
(total) 
Investments general account                 38,346   36,810     4 
Investments for account of                  22,746   23,195   (2) 
policyholders 
Off balance sheet investments third              -        -     - 
parties 
 
 
UNITED KINGDOM 
 
- Underlying earnings before tax of GBP 8 million as a result of higher 
exceptional charges and expenses 
 
- New life sales decrease to GBP 175 million as a result of planned lower 
pension sales 
 
Underlying earnings before tax 
 
In the United Kingdom, underlying earnings before tax amounted to GBP 8 
million, mainly driven by lower fee income. Exceptional charges during the 
quarter related to the customer redress program (GBP 5 million), expenses 
related to the execution of this program (GBP 7 million) and the development 
of new product propositions (GBP 3 million). These exceptional expenses may 
continue in the fourth quarter of 2011. Following the decision to sell the 
closed UK life insurance business, Guardian, the associated earnings were no 
longer reflected in underlying earnings (GBP 5 million). 
 
- Earnings from Life decreased 22% to GBP 18 million, mainly as a result of 
lower investment income following de-risking, and only partly offset by cost 
reductions. 
 
- Pensions recorded a loss of GBP 9 million, mainly as a result of lower fee 
income, continued investments in new product propositions, expenses and other 
charges related to the customer redress program, and the exclusion of earnings 
from Guardian following the decision to sell the closed UK life insurance 
business. 
 
- Distribution recorded a loss of GBP 1 million. 
 
AEGON is progressing well with the implementation of its program to identify 
and correct historical issues within its customer policy records, which began 
in May 2009. The immediate priority of the program has been to deal with 
issues that resulted in financial detriment and to return affected customers 
to the financial position they would have been in had the issue not occurred. 
The program of determining the full scope of customer redress is expected to 
continue throughout the remainder of the year and may lead to additional 
charges. AEGON expects to have repaid the majority of the customer detriment 
by the end of 2011. 
 
Net income 
 
Net income was nil as lower underlying earnings and lower results on fair 
value items were only partly offset by higher gains on investments of GBP 3 
million. Impairments in the third quarter amounted to GBP 19 million and 
related to impairments on financial holdings of Portuguese and Greek banks. 
Net income also included a charge of GBP 13 million relating to the 
restructuring of AEGON's operations in the United Kingdom and a benefit of GBP 
21 million was recorded as a result of the tax rate reduction as per April 
2012, enacted in July 2011. 
 
Operating expenses 
 
Operating expenses remained level at GBP 104 million as cost savings were 
offset by charges related to the restructuring program of GBP 13 million, as 
well as investments in the new proposition development of GBP 3 million. 
Expenses of GBP 7 million relating to the execution of the customer redress 
program are also included in operating expenses. The UK restructuring aims to 
reduce operating expenses by 25%, or GBP 80 million, by the end of 2011. It is 
expected that further restructuring charges will arise in the fourth quarter 
of 2011. To date, AEGON has implemented cost savings of GBP 71 million. 
 
Sales and deposits 
 
New life sales decreased 20% to GBP 175 million during the quarter as a result 
of a planned decrease in sales of individual pensions and new group pension 
schemes following reductions in the commission levels paid to advisors on 
these products. 
 
Value of new business 
 
The value of new business in the United Kingdom declined to GBP 3 million 
mainly driven by lower sales. 
 
Revenue-generating investments 
 
Revenue-generating investments declined to GBP 55 billion as compared with the 
second quarter 2011, as a result of a lower equity markets. 
 
UNITED KINGDOM 
 
GBP millions                        Notes  Q3 2011  Q2 2011    % Q3 2010    % YTD 2011 YTD 2010    % 
 
Underlying earnings before tax by line 
of business 
Life                                            18       17    6      23 (22)       56       56    - 
Pensions                                       (9)      (7) (29)       -    -     (25)       14    - 
Distribution                                   (1)      (1)    -       1    -      (4)      (3) (33) 
Underlying earnings before tax                   8        9 (11)      24 (67)       27       67 (60) 
 
Fair value items                               (7)        -    -       1    -      (8)      (8)    - 
Realized gains / (losses) on                     3       10 (70)       -    -       38        5    - 
investments 
Impairment charges                            (19)     (35)   46     (2)    -     (54)     (10)    - 
Other income / (charges)                7        4        1    -      12 (67)        -       52    - 
Income before tax                             (11)     (15)   27      35    -        3      106 (97) 
Income tax attributable to                    (17)     (15) (13)    (23)   26     (33)     (63)   48 
policyholder return 
Income before income tax on                   (28)     (30)    7      12    -     (30)       43    - 
shareholders return 
Income tax on shareholders return               28       15   87      32 (13)       61       45   36 
Net income                                       -     (15)    -      44    -       31       88 (65) 
 
Net income / (loss) attributable 
to: 
Equity holders of AEGON N.V.                     -     (15)    -      44    -       31       88 (65) 
 
Net underlying earnings                         26       14   86      52 (50)       73      105 (30) 
 
Commissions and expenses                       183      193  (5)     179    2      548      530    3 
of which operating expenses                    104      109  (5)     102    2      311      292    7 
 
New life sales                          8 
Life single premiums                           615      711 (14)     859 (28)    2,167    3,048 (29) 
Life recurring premiums annualized             113      120  (6)     133 (15)      360      412 (13) 
Total recurring plus 1/10 single               175      191  (8)     219 (20)      577      717 (20) 
 
Life                                            18       15   20      17    6       49       66 (26) 
Pensions                                       157      176 (11)     202 (22)      528      651 (19) 
Total recurring plus 1/10 single               175      191  (8)     219 (20)      577      717 (20) 
 
Gross deposits (on and off balance) 
by line of business 
Variable annuities                              10       14 (29)      13 (23)       41       61 (33) 
Total gross deposits                            10       14 (29)      13 (23)       41       61 (33) 
 
Net deposits (on and off balance) 
by line of business 
Variable annuities                               1       12 (92)       1    -       15       35 (57) 
Total net deposits                               1       12 (92)       1    -       15       35 (57) 
 
REVENUE-GENERATING INVESTMENTS 
 
                                         Sept. 30, June 30, 
                                              2011     2011    % 
Revenue-generating investments              54,611   58,319  (6) 
(total) 
Investments general account                  8,168    7,952    3 
Investments for account of                  46,443   50,367  (8) 
policyholders 
 
 
NEW MARKETS 
 
- Underlying earnings before tax declined to EUR 43 million, mainly driven by 
lower earnings from CEE 
 
- Net loss amounted to EUR 13 million, mainly the result of increased 
impairments 
 
- New life sales increased to EUR 64 million driven by higher sales in CEE and 
Spain 
 
Underlying earnings before tax 
 
In New Markets, AEGON reported underlying earnings before tax of EUR 43 
million. The decline is a result of lower underlying earnings from Central & 
Eastern Europe and Variable Annuities Europe. 
 
- Earnings from Central & Eastern Europe declined to EUR 15 million as higher 
results from non-life in Hungary were more than offset by the negative impact 
from pension legislation changes and lower investment income in Hungary. 
Compared to the second quarter of 2011, earnings for the third quarter were 
lower as result of seasonality in non-life claims. Other factors were lower 
fee income following the pension asset transfer to the Hungarian State and 
reduced contributions to mandatory pension funds in Poland. 
 
- Results from AEGON's operations in Asia remained level at EUR (11) million 
as the impact from cost reductions have been offset by the inclusion of the 
expenses related to the Asian regional office. The results for the Asia 
regional office have been included since the first quarter of 2011, following 
the implementation of the new operational structure for the Asian operations. 
 
- Earnings from Spain & France amounted to 
EUR 21 million as growth from the inclusion of earnings from Caixa Sabadell 
Vida was more than offset by lower underlying earnings from CAM. Earnings 
contributions from partner La Mondiale in France decreased slightly compared 
with the same quarter last year. 
 
- Earnings from Variable Annuities Europe declined to EUR 3 million. The 
comparable quarter last year included a one-time benefit of EUR 5 million. 
Excluding this one-time benefit, earnings for Variable Annuities Europe 
remained level. 
 
- AEGON Asset Management reported higher earnings of EUR 15 million for the 
quarter as a result of higher performance fees and cost savings. 
 
Net income 
 
New Markets recorded a net loss of EUR 13 million during the quarter as a 
result of lower underlying earnings and higher impairments. Impairments 
amounted to EUR 29 million and were mainly driven by increased mortgage 
impairments in Central & Eastern Europe. Following new legislation in Hungary, 
customers are allowed to repay their mortgages at pre-set foreign exchange 
rates between the Swiss franc and the Hungarian forint. AEGON estimated the 
total negative impact from this change in legislation to amount to EUR (14) 
million, which has been reflected in impairments. Results on fair value items 
amounted to EUR (16) million, driven mainly by hedge ineffectiveness in 
Variable Annuities Europe. In addition, lower realized gains were offset by 
lower other charges. 
 
Operating expenses 
 
Operating expenses declined 3% to EUR 130 million in the third quarter, as a 
result of lower operating expenses in AEGON Asset Management and cost saving 
initiatives in Central & Eastern Europe. This was only partly offset by higher 
costs in Variable Annuities Europe. 
 
Sales and deposits 
 
New life sales increased 7% to EUR 64 million. 
 
- In Central & Eastern Europe, new life sales increased by 4% to EUR 27 
million driven by the development of the tied network and the increased focus 
on life insurance in Hungary, Poland and Turkey. 
 
- In Asia, new life sales declined to EUR 7 million as growth in India was 
offset by lower new life sales in China mainly as a result of new regulation. 
 
- New life sales in Spain & France increased 20% to EUR 30 million, mainly as 
a result of the first-time inclusion of Caixa Sabadell Vida. 
 
New premium production from AEGON's general insurance and accident & health 
businesses in Central & Eastern Europe decreased to EUR 6 million, as strong 
household insurance sales in Hungary were offset by lower motor production due 
to increased price competition. 
 
Gross deposits in New Markets amounted to EUR 2.5 billion, primarily driven by 
strong deposits in AEGON Asset Management as a result of new mandate wins and 
good performance in the retail segment. During the quarter, AEGON Asset 
Management rebranded its third-party asset management operations as Kames 
Capital. 
 
Value of new business 
 
The value of new business in New Markets decreased to EUR 16 million as a 
result of the combined negative effects of adverse pension legislation in 
Hungary, lower production at one of the distribution partners in Spain and 
margin pressure at Variable Annuities Europe. 
 
Revenue-generating investments 
 
Revenue-generating investments increased 5% compared with the second quarter 
of 2011 to EUR 44 billion, driven by net deposits in AEGON Asset Management. 
Lower interest rates more than offset the negative impact of lower equity 
markets. 
 
NEW MARKETS 
 
EUR millions                        Notes  Q3 2011  Q2 2011    % Q3 2010    % YTD 2011 YTD 2010    % 
 
Underlying earnings before tax 
Central Eastern Europe                          15       29 (48)      20 (25)       70       66    6 
Asia                                          (11)      (8) (38)    (10) (10)     (30)     (27) (11) 
Spain & France                                  21       20    5      24 (13)       64       63    2 
Variable Annuities Europe                        3        -    -       8 (63)        8        7   14 
AEGON Asset Management                          15       18 (17)      13   15       47       32   47 
Underlying earnings before tax                  43       59 (27)      55 (22)      159      141   13 
 
Fair value items                              (16)      (3)    -     (9) (78)     (19)     (10) (90) 
Realized gains / (losses) on                     -        -    -       2    -        2       13 (85) 
investments 
Impairment charges                            (29)      (4)    -       -    -     (35)     (11)    - 
Other income / (charges)                       (2)      (3)   33     (5)   60        6     (16)    - 
Income before tax                              (4)       49    -      43    -      113      117  (3) 
Income tax                                     (9)     (10)   10    (13)   31     (45)     (35) (29) 
Net income                                    (13)       39    -      30    -       68       82 (17) 
 
Net income / (loss) attributable 
to: 
Equity holders of AEGON N.V.                  (13)       38    -      30    -       67       81 (17) 
Non-controlling interests                        -        1    -       -    -        1        1    - 
 
Net underlying earnings                         26       47 (45)      41 (37)      111      103    8 
 
Commissions and expenses                       180      175    3     175    3      535      519    3 
of which operating expenses                    130      132  (2)     134  (3)      403      394    2 
 
New life sales                         12 
Life single premiums                            82      117 (30)     156 (47)      373      498 (25) 
Life recurring premiums annualized              56       58  (3)      44   27      173      150   15 
Total recurring plus 1/10 single                64       70  (9)      60    7      210      200    5 
 
Life                                            59       64  (8)      50   18      185      169    9 
Associates                                       5        6 (17)      10 (50)       25       31 (19) 
Total recurring plus 1/10 single                64       70  (9)      60    7      210      200    5 
 
Central Eastern Europe                          27       30 (10)      26    4       84       69   22 
Asia                                             7        7    -       9 (22)       25       28 (11) 
Spain & France                                  30       33  (9)      25   20      101      103  (2) 
Total recurring plus 1/10 single                64       70  (9)      60    7      210      200    5 
 
New premium production accident and              2        1  100       1  100        6        9 (33) 
health insurance 
New premium production general                   6        7 (14)       8 (25)       18       23 (22) 
insurance 
 
Gross deposits (on and off balance)    12 
Central Eastern Europe                         160      167  (4)     242 (34)      509      717 (29) 
Asia                                             9        7   29       8   13       27       43 (37) 
Spain & France                                   8       11 (27)      10 (20)       27       66 (59) 
Variable Annuities Europe                      122      159 (23)     167 (27)      412      530 (22) 
AEGON Asset Management                       2,226      898  148   3,734 (40)    4,059    6,185 (34) 
Total gross deposits                         2,525    1,242  103   4,161 (39)    5,034    7,541 (33) 
 
Net deposits (on and off balance)      12 
Central Eastern Europe                         112  (1,972)    -     154 (27)  (1,752)      372    - 
Asia                                             6        4   50       8 (25)       21       42 (50) 
Spain & France                                   1     (43)    -    (11)    -     (53)       18    - 
Variable Annuities Europe                       33       63 (48)      71 (54)      122      197 (38) 
AEGON Asset Management                       1,350    (539)    -   3,071 (56)  (1,042)    2,972    - 
Total net deposits                           1,502  (2,487)    -   3,293 (54)  (2,704)    3,601    - 
 
 
REVENUE-GENERATING INVESTMENTS 
 
                                         Sept. 30, June 30, 
                                              2011     2011    % 
Revenue-generating investments              44,302   42,154    5 
(total) 
Investments general account                  3,354    2,819   19 
Investments for account of                   6,129    6,203  (1) 
policyholders 
Off balance sheet investments third         34,819   33,132    5 
parties 
 
 
FINANCIAL OVERVIEW, 2011 YEAR-TO-DATE GEOGRAPHICALLY c) 
                                                                                   Holding, 
                                                                                      other 
                                                           The  United     New activities & 
EUR millions                              Americas Netherlands Kingdom Markets eliminations Total 
 
Underlying earnings before tax by line 
of business 
Life                                           463         145      64      55            -   727 
Individual savings and retirement              346           -       -     (8)            -   338 
products 
Pensions                                       173          62    (28)       9            -   216 
Non-life                                         -           4       -      26            -    30 
Distribution                                     -           8     (5)       -            -     3 
Asset Management                                 -           -       -      47            -    47 
Other                                            -           -       -       -        (219) (219) 
Associates                                       -           4       -      30            -    34 
Underlying earnings before tax                 982         223      31     159        (219) 1,176 
 
Fair value items                             (339)        (33)     (9)    (19)            4 (396) 
Realized gains / (losses) on                   116         236      43       2            -   397 
investments 
Impairment charges                           (187)        (10)    (62)    (35)            - (294) 
Other income / (charges)                         1        (80)       -       6            -  (73) 
Run-off businesses                              27           -       -       -            -    27 
Income before tax                              600         336       3     113        (215)   837 
Income tax                                    (30)        (65)      33    (45)           61  (46) 
Net income                                     570         271      36      68        (154)   791 
 
Net underlying earnings                        751         188      84     111        (154)   980 
 
 
APPENDIX II 
 
VALUE OF NEW BUSINESS 
AND IRR 
                                VNB      VNB              VNB               VNB      VNB 
EUR millions, after tax       Q3 2011  Q2 2011    %     Q3 2010     %     YTD 2011 YTD 2010    % 
 
Americas                            24      51     (53)       40     (40)      138      135        2 
The Netherlands                     14      20     (30)       23     (39)       58      102     (43) 
United Kingdom                       3      11     (73)       19     (84)       24       56     (57) 
New Markets                         16      20     (20)       27     (41)       59       91     (35) 
Total                               58     103     (44)      109     (47)      279      385     (28) 
 
                               IRR %    IRR%              IRR% 
EUR millions, after tax       Q3 2011  Q2 2011          Q3 2010 
 
Americas                          10.6    14.8              12.1 
The Netherlands                   18.1    17.3              16.2 
United Kingdom                     9.0    10.6              11.4 
New Markets                       30.8    36.5              34.1 
Total                             19.1    19.5              17.8 
 
MODELED NEW BUSINESS, 
APE AND DEPOSITS 
                                  Premium                                          Premium business 
                                  business 
                                APE                                                  APE 
EUR millions            Notes Q3 2011  Q2 2011    %     Q3 2010     %     YTD 2011 YTD 2010    % 
                            9 
Americas                           242     231        5      247      (2)      722      701        3 
The Netherlands                     34      45     (24)       38     (11)      154      189     (19) 
United Kingdom                     200     227     (12)      254     (21)      665      823     (19) 
New Markets                         77      88     (13)       80      (4)      260      257        1 
Total                              554     592      (6)      619     (11)    1,800    1,969      (9) 
 
                                  Deposit                                          Deposit business 
                                  business 
                              Deposits                                             Deposits 
EUR millions            Notes Q3 2011  Q2 2011    %     Q3 2010     %     YTD 2011 YTD 2010    % 
                            9 
Americas                         6,566   4,223       55    4,131       59   15,425   12,381       25 
United Kingdom                      11      17     (35)       16     (31)       47       67     (30) 
New Markets                        188     258     (27)      231     (19)      662      841     (21) 
Total                            6,765   4,498       50    4,378       55   16,133   13,290       21 
 
VNB/PVNBP 
SUMMARY 
                                  Premium                        Premium business 
                                  business 
                                VNB      PVNBP  VNB /    VNB /     VNB       PVNBP  VNB /    VNB / 
                                                PVNBP     APE                       PVNBP     APE 
EUR millions            Notes Q3 2011             %        %         YTD 2011         %        % 
                           10 
Americas                            22     725      3.0      9.1       71    2,293      3.1      9.8 
The Netherlands                     14     266      5.4     42.0       58    1,273      4.6     37.7 
United Kingdom                       3   1,179      0.3      1.6       23    3,996      0.6      3.5 
New Markets                         17     545      3.1     22.1       60    1,881      3.2     22.9 
Total                               57   2,714      2.1     10.3      212    9,442      2.2     11.8 
 
                                  Deposit                        Deposit business 
                                  business 
                                VNB      PVNBP  VNB /    VNB /     VNB       PVNBP  VNB /    VNB / 
                                                PVNBP   Deposits                    PVNBP   Deposits 
EUR millions            Notes Q3 2011             %        %         YTD 2011         %        % 
                           10 
Americas                             2   8,180      0.0      0.0       67   19,897      0.3      0.4 
United Kingdom                       0      11      0.4      0.4        0       47      0.5      0.5 
New Markets                        (1)     280    (0.3)    (0.4)      (0)      909      0.0      0.0 
Total                                1   8,472      0.0      0.0       67   20,853      0.3      0.4 
 
 
 
Notes: 
 
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 value of new business (VNB) 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. There is no s 
 
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 of future distributable earnings on the block of business 
sold in the reporting period. Value of new business is calculated using 
beginning of year economic assumptions and assumptions outside of management 
control, and beginning of quarter operating assumptions. 
 
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 New Business Premium. 
 
11)Reconciliation of operating expenses, used for segment reporting, to our 
IFRS based operating expenses. 
 
                                            Q3 2011 YTD 2011 
 
 Employee expenses                              513    1,567 
 Administrative expenses                        363      960 
 Operating expenses for IFRS reporting          876    2,527 
 Operating expenses related to                   10       43 
 associates 
 Operating expenses in earnings release         886    2,570 
 
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 2010 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 2010 earnings and sales information has been revised to 
reflect the transfer of the Life Reinsurance and BOLI/COLI businesses to the 
Run-off businesses line to make the information consistent with the current 
period figures. 
 
Currencies 
 
Income statement items: average rate 1 EUR = USD 1.4056 (2010: USD 1.3154). 
Income statement items: average rate 1 EUR = GBP 0.8702 (2010: GBP 0.8572). 
Balance sheet items: closing rate 1 EUR = USD 1.3417 (2010: USD 1.3648;year-end 2010: USD 1.3362). 
Balance sheet items: closing rate 1 EUR = GBP 0.8613 (2010: GBP 0.8599;year-end 2010: GBP 0.8608). 
 
 
 
ADDITIONAL INFORMATION 
 
The Hague, November 10, 2011 
 
Press conference call 
7:45 am CET: Audio webcast on www.aegon.com 
 
Analyst & investor presentation / conference call 
 
9:00 am 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 and on the following phone numbers: 
 
United Kingdom: +44 207 154 2833, access code: 4481413# 
 
United Sates: +1 303 590 3030, access code: 4481413# 
 
Supplements 
AEGON's Q3 2011 Financial Supplement and Condensed Consolidated Interim 
Financial Statements are available on www.aegon.com. 
 
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, Europe and Asia. AEGON companies employ 
approximately 26,000 people and have some 40 million customers 
across the globe. 
 
                       Third quarter 
Key figures - EUR               2011      Full year 2010 
 
Underlying earnings 
before tax               361 million         1.8 billion 
New life sales           405 million         2.1 billion 
Gross deposits          10.5 billion          33 billion 
Revenue-generating 
investments (end of 
period)                  404 billion         413 billion 
 
 
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.com 
 
DISCLAIMERS 
 
  Cautionary note regarding non-GAAP measures 
  This press release includes certain non-GAAP financial measures: underlying earnings 
  before tax, net underlying earnings, commission and expenses, operating expenses and 
  value of new business (VNB). The reconciliation of underlying earnings before tax to 
  the most comparable IFRS measure is provided in Note 3 "Segment information" of our 
  Condensed consolidated interim financial statements. VNB 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. We may define and calculate VNB 
  differently than other companies. Please see AEGON's Embedded Value Report dated May 
  12, 2011 for an explanation of how we define and calculate VNB. AEGON believes that 
  these non-GAAP measures, together with the IFRS information, provide meaningful 
  supplemental information that our management uses to run our business as well as 
  useful information for the investment community to evaluate AEGON's business 
  relative to the businesses of our 
 
  Local currencies and constant currency exchange rates 
  This press release contains certain information about our results and financial 
  condition 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 us presented in EUR, which 
  is the currency of our primary financial statements. 
 
  Forward-looking statements 
  The statements contained in this press release 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 our company. These statements are 
  not guarantees of future performance and involve risks, uncertainties and 
  assumptions that are difficult to predict. We undertake 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 unce 
- 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 our 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 we hold; 
- The frequency and severity of insured loss events; 
- Changes affecting mortality, morbidity and other factors that may impact the 
  profitability of our insurance products; 
- 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; 
- Increasing levels of competition in the United States, the Netherlands, the United 
  Kingdom and emerging markets; 
- Changes in laws and regulations, particularly those affecting our operations, the 
  products we sell, and the attractiveness of certain products to our consumers; 
- Regulatory changes relating to the insurance industry in the jurisdictions in which 
  we operate; 
- 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 our debt ratings issued by recognized rating 
  organizations and the adverse impact such action may have on our ability to raise 
  capital and on our liquidity and financial condition; 
- Lowering of one or more of insurer financial strength ratings of our insurance 
  subsidiaries and the adverse impact such action may have on premium writings, policy 
  retention, profitablity 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 we are required to maintain; 
- Litigation or regulatory action that could require us to pay significant damages or 
  change the way we do business; 
- Customer responsiveness to both new products and distribution channels; 
- Competitive, legal, regulatory, or tax changes that affect the distribution cost of 
  or demand for our products; 
- The impact of acquisitions and divestitures, restructerings, product withdrawels and 
  other unusual tems, including our ability to integrate acquisitions and to obtain 
  the anticipated results and synergies from acquisitions; 
- Our failure to achieve anticipated levels of earnings or operational efficiencies as 
  well as other cost saving initiatives; and 
- The impact our adoption of the International Financial Reporting Standards may have 
  on our reported financial results and financial condition. 
 
  Further details of potential risks and uncertainties affecting the company are 
  described in the company's filings with Euronext Amsterdam and the US Securities and 
  Exchange Commission, including the Annual Report on Form 20-F. These forward-looking 
  statements speak only as of the date of this document. Except as required by any 
  applicable law or regulation, the company 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 the company's expectations with 
  regard thereto or any change in events, conditions or circumstances on which any 
  such statement is based. 
 
 
 
END 
 

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