Aegon's Earnings Impacted by Assumption Changes and Model Updates
THE HAGUE, the Netherlands, November 13, 2014 /PRNewswire/ --
- Outcome of annual assumptions review impacts underlying earnings
- Underlying earnings amount to EUR 291 million, impacted mainly by actuarial assumption changes
- Fair value items loss of EUR 296 million, due mostly to hedging programs and model updates
- Net income amounts to EUR 52 million
- Return on equity of 5.0%, or 8.5% excluding assumption changes and model updates
- Double-digit sales growth demonstrates strength of franchise
- Gross deposits up 38% to EUR 15.2 billion, driven by asset management and variable annuities;
net deposits up 20% to EUR 3.5 billion - Life sales increase 34% to EUR 552 million, as a result of strong production across markets
- Accident & health and general insurance sales 40% higher to EUR 257 million, driven by US
- Profitability of sales remains strong despite lower market consistent value of new business
at EUR 192 million; decline driven by lower interest rates and changes in product mix - Total revenue-generating investments increase to EUR 538 billion
- One-time items impact capital position and cash flows
- Holding excess capital of EUR 1.5 billion following payment of interim dividend
- Solvency ratio declines to 202%, mainly due to change in valuation methodology for Dutch mortgages
- Operational free cash flows excluding market impacts and one-time items of EUR 275 million
Statement of Alex Wynaendts, CEO
"Our earnings this quarter were significantly impacted by changes to our assumptions and updates to our actuarial models. Over the past year, as part of an ongoing commitment to deliver operational excellence, we have intensified efforts to review and enhance our models where necessary.
"At the same time, we are pleased to report another quarter of strong profitable sales growth across our businesses. The trust that new and existing customers place in Aegon is reflected in strong inflows in our asset management, variable annuity, mutual fund and retirement businesses, together with securing the largest ever buy-out contract in the Dutch pension market.
"Our continued commitment to optimizing our portfolio is demonstrated by the sale of our Canadian operations. While uncertainties due to the current regulatory environment persist, we remain focused on executing our strategy and achieving our long-term ambitions."
Key performance indicators
amounts in EUR millions b)
Notes Q3 2014 Q2 2014 % Q3 2013 % YTD 2014 YTD 2013 %
Underlying earnings
before tax 1 291 514 (43) 550 (47) 1,303 1,495 (13)
Net income 52 343 (85) 236 (78) 787 700 12
Sales 2 2,333 2,066 13 1,697 38 6,485 5,410 20
Market consistent value
of new business 3 192 221 (13) 285 (33) 636 719 (12)
Return on equity 4 5.0% 8.8% (44) 11.0% (55) 7.2% 8.8% (18)
All comparisons in this release are against the third quarter of 2013, unless stated otherwise.
STRATEGIC HIGHLIGHTS
- Sale of Canadian business for CAD 600 million
- Tsinghua Tongfang new joint venture partner in China
- Knab, Aegon's online bank in the Netherlands, is gaining popularity
Aegon's ambition
Aegon continues to pursue its strategic aim to be a leader in all of its chosen markets, supported by four strategic objectives embedded in all Aegon businesses: Optimize portfolio, Deliver operational excellence, Enhance customer loyalty, and Empower employees. These provide the strategic framework for the company's ambition to become the most-recommended life insurance and pension provider by customers and business partners, as well as the most-preferred employer in the sector.
Optimize portfolio
Aegon is committed to continually assessing its businesses to ensure they contribute to the company meeting its strategic objectives. After a comprehensive strategic review, Aegon has announced that it has reached an agreement to sell its Canadian life insurance, asset management and mutual fund operations to Wilton Re for CAD 600 million. The transaction is expected to close during the first quarter of 2015 and proceeds from the sale will be used to reduce leverage. The sale and leverage reduction will improve the company's return on equity by 40 basis points.
In China, Tsinghua Tongfang, one of the country's premier information technology companies, will replace CNOOC as Aegon's joint venture partner. The joint venture will combine Aegon's experience as an international insurer with Tsinghua Tongfang's technological expertise to help take the business to its next stage of growth and development.
Deliver operational excellence
Aegon's mortgage origination business in the Netherlands has long been an example of operational excellence. High standards of customer service and efficient processing have helped grow the business to a new business market share of around 13%. In 2013, Aegon established a Dutch mortgage fund and this longer duration asset class is proving popular among investors, specifically other pension providers without own mortgage origination capabilities. More than half of Aegon's third quarter 2014 mortgage production has been allocated to third party investors, with assets in the Dutch mortgage fund now exceeding EUR 2 billion.
Enhance customer loyalty
An essential element of Aegon's strategy is to get closer to its customers by increasing innovation at all levels of the organization. Technology is enabling Aegon to respond quicker to changing markets and customer behavior, to create a more customer-centric culture. Knab, Aegon's unique online bank in the Netherlands, is quickly gaining popularity by focusing on simple to use tools to help customers manage their finances and prepare for their financial future. Supported by the recent launch of an account dedicated to addressing the needs of small business owners, Knab's total number of customers has doubled while savings balances have increased to over EUR 800 million.
As part of the Building Public Trust Awards, Aegon was awarded the International Award in recognition of the company's transparency of both financial and non-financial information. The award category consisted of around 100 international companies participating in the International Integrated Reporting Council's (IIRC) pilot program. The judging panel of the Building Public Trust Awards referred to Aegon as "one of the leaders showing the way forward."
Financial overview c)
EUR millions Notes Q3 2014 Q2 2014 % Q3 2013 % YTD 2014 YTD 2013 %
Underlying earnings
before tax
Americas 134 331 (60) 367 (64) 767 1,015 (24)
The Netherlands 127 131 (3) 114 11 386 330 17
United Kingdom 28 32 (12) 22 21 86 67 28
New Markets 40 62 (36) 72 (45) 163 181 (10)
Holding and other (37) (41) 10 (25) (46) (99) (98) (2)
Underlying earnings
before tax 291 514 (43) 550 (47) 1,303 1,495 (13)
Fair value items (296) (263) (13) (457) 35 (675) (1,022) 34
Realized gains /
(losses) on
investments 85 198 (57) 202 (58) 392 395 (1)
Net impairments 5 (3) - (46) - (6) (121) 95
Other income /
(charges) (29) (14)(109) (42) 31 (49) (19) (157)
Run-off businesses (31) (1) - 2 - (18) 7 -
Income before tax 23 432 (95) 209 (89) 947 735 29
Income tax 29 (88) - 27 7 (160) (35) -
Net income 52 343 (85) 236 (78) 787 700 12
Net income / (loss)
attributable to:
Equity holders of
Aegon N.V. 52 343 (85) 236 (78) 787 699 13
Non-controlling
interests - - - - (50) - 1 (82)
Net underlying
earnings 235 382 (38) 476 (51) 987 1,181 (16)
Commissions and
expenses 1,398 1,471 (5) 1,452 (4) 4,296 4,403 (2)
of which operating
expenses 9 826 810 2 818 1 2,415 2,437 (1)
New life sales
Life single premiums 1,806 1,247 45 1,282 41 4,115 4,425 (7)
Life recurring
premiums annualized 372 386 (4) 283 31 1,111 988 12
Total recurring plus
1/10 single 552 511 8 412 34 1,522 1,431 6
New life sales
Americas 10 141 125 13 116 22 382 350 9
The Netherlands 99 37 165 23 - 169 111 53
United Kingdom 250 278 (10) 222 13 777 800 (3)
New markets 10 61 71 (13) 51 20 194 170 14
Total recurring plus
1/10 single 552 511 8 412 34 1,522 1,431 6
New premium
production accident
and health insurance 241 235 2 167 44 737 565 30
New premium
production general
insurance 16 17 (7) 16 1 51 44 16
Gross deposits (on
and off balance)
Americas 10 7,053 8,524 (17) 7,957 (11) 24,085 21,362 13
The Netherlands 716 591 21 278 158 1,793 1,009 78
United Kingdom 90 70 28 99 (10) 214 219 (3)
New markets 10 7,382 3,844 92 2,690 175 15,655 11,108 41
Total gross deposits 15,242 13,029 17 11,024 38 41,746 33,698 24
Net deposits (on and
off balance)
Americas 10 457 3,237 (86) 2,576 (82) 5,672 5,374 6
The Netherlands 338 271 24 (64) - 647 (113) -
United Kingdom 57 38 51 80 (29) 123 173 (29)
New markets 10 2,945 2,687 10 826 - 2,706 3,204 (16)
Total net deposits
excluding run-off
businesses 3,797 6,233 (39) 3,418 11 9,147 8,638 6
Run-off businesses (265) (163) (63) (485) 45 (1,047) (2,202) 52
Total net deposits /
(outflows) 3,532 6,070 (42) 2,933 20 8,100 6,436 26
Revenue-generating investments
Sep. 30, Jun. 30, Dec. 31,
2014 2014 % 2013 %
Revenue-generating
investments (total) 538,217 503,413 7 475,285 13
Investments general account 151,469 142,278 6 135,409 12
Investments for account of
policyholders 184,317 174,590 6 165,032 12
Off balance sheet
investments third parties 202,432 186,545 9 174,843 16
OPERATIONAL HIGHLIGHTS
Assumption changes and model updates
Aegon reviews its assumptions in the Americas and Asia annually in the third quarter, which resulted in an adjustment to its actuarial assumptions. Over the past year, as part of an ongoing commitment to deliver operational excellence, the company also intensified efforts to review and enhance its models where necessary. These actuarial assumption changes and model updates on balance accounted for charges of EUR 299 million in the third quarter of 2014. The adjustments impacted underlying earnings by EUR 221 million, fair value items by EUR 46 million and earnings from the run-off businesses by EUR 32 million. In addition, underlying earnings before tax are reduced by approximately EUR 20 million per quarter on a recurring basis.
Underlying earnings before tax
Aegon's underlying earnings before tax in the third quarter of 2014 of EUR 291 million were impacted by charges for actuarial assumption changes and model updates in the Americas and Asia (EUR 221 million). In addition, unfavorable mortality and morbidity experience in the Americas also contributed to lower earnings (EUR 45 million). These items more than offset a one-time gain on reinsurance recaptures in the Americas (EUR 40 million), higher investment income and margins in the Netherlands (EUR 10 million) and improved persistency in the United Kingdom (EUR 6 million).
Underlying earnings from the Americas amounted to EUR 134 million. Higher earnings from growth in variable annuity, mutual fund and pension balances, driven by both markets and net inflows, were more than offset by charges for assumption changes and model updates of EUR 195 million. These were primarily the result of introducing updated mortality and reinsurance assumptions. Assumption changes on client behavior in variable annuities had a smaller positive impact. A detailed description of the assumption changes and model updates can be found in the Americas section on page 8 of this press release.
In the Netherlands, underlying earnings increased 11% to EUR 127 million. This was mainly driven by higher investment income, primarily generated by mortgages and improved margins on savings.
Underlying earnings from Aegon's operations in the United Kingdom were up 21% to EUR 28 million in the third quarter of 2014, the result of improved persistency and favorable currency movements.
Underlying earnings from New Markets declined to EUR 40 million. The negative impact of model updates in Asia of EUR 26 million more than offset growth at Aegon Asset Management, which resulted from an increase in third party balances, higher performance fees and dividend income from the Chinese joint venture AIFMC.
Total holding costs increased to EUR 37 million. This was primarily the result of higher net interest costs following a debt issuance in the second quarter of 2014 to replace a more expensive perpetual capital security for which the coupons were not part of underlying earnings.
Net income
Net income declined to EUR 52 million due to lower underlying earnings and lower realized gains on investments, which more than offset the improvement in fair value items and impairments.
Fair value items
The results from fair value items amounted to a loss of EUR 296 million. Assumption changes and model updates amounted to EUR 46 million before tax, and were primarily the result of adjusting the modeled hedging costs for the GMWB variable annuity book. Next to these charges, the loss was mainly driven by the macro equity hedge in the United States (EUR 40 million), credit spread tightening in the Netherlands (EUR 63 million) and underperformance of fair value investments in the Americas (EUR 48 million).
Realized gains on investments
Realized gains on investments declined to EUR 85 million, and were primarily related to rebalancing of the fixed income portfolio in the Netherlands.
Impairment charges
Net impairments improved to a positive EUR 5 million. This was the result of the favorable credit environment in the United States, where impairments remained low and were more than offset by recoveries, and lower impairments on Dutch mortgages. This more than compensated for higher impairments on Hungarian mortgages driven by new legislation.
Other charges
Other charges amounted to EUR 29 million and were primarily caused by a provision taken for the closed block of European direct marketing activities.
Run-off businesses
The results of run-off businesses amounted to a loss EUR 31 million as earnings in the third quarter were impacted by model updates of EUR 32 million, affecting the legacy life reinsurance book.
Income tax
Income tax amounted to a positive EUR 29 million in the third quarter, which was mainly the result of losses being tax relieved at high marginal tax. The effective tax rate on underlying earnings was 19%, driven by tax exempt income in the United States and in the Netherlands.
Return on equity
Return on equity declined to 5.0% for the third quarter of 2014, driven by the charges for actuarial assumption changes and model updates in the United States. Return on equity excluding these charges amounted to 8.5% over the same period.
Operating expenses
Operating expenses increased 1% to EUR 826 million, as lower restructuring costs were offset by higher expenses to support the growth of the business in the United States and the Netherlands.
Sales
In the third quarter of 2014, Aegon's total sales were up 38% to EUR 2.3 billion, which is the result of Aegon's focus on growing profitable sales in variable annuities, universal life and Dutch group pensions, in addition to growing its third party asset management business. Gross deposits increased 38%, as higher deposits in Aegon Asset Management and variable annuities more than offset lower retirement deposits in the United States. Net deposits, excluding run-off businesses, were up 11% to EUR 3.8 billion. New premium production for accident and health insurance increased 44% to
EUR 241 million, mainly due to several portfolio acquisitions in the United States, which were the result of new distribution agreements. New life sales increased 34%, driven by higher sales of universal life products in the United States and a strong improvement of pension production in the Netherlands as Aegon closed the largest pension buyout contract achieved to date.
Market consistent value of new business
The market consistent value of new business remained strong but declined to EUR 192 million. Strong sales growth in the United States and the Netherlands were more than offset by the effect of lower interest rates and less Dutch mortgage production for Aegon's general account.
Revenue-generating investments
Revenue-generating investments increased 7% during the third quarter of 2014 to EUR 538 billion, driven by net inflows and favorable currency movements.
Capital management
Shareholders' equity increased EUR 1.6 billion compared to the end of the second quarter of 2014 to EUR 21.9 billion at September 30, 2014. This was mainly driven by the effect of lower interest rates, resulting in higher revaluation reserves, and favorable currency movements. The revaluation reserves increased by EUR 1.1 billion to EUR 6.5 billion. Aegon's shareholders' equity, excluding revaluation reserves and defined benefit plan remeasurements, amounted to EUR 16.7 billion - or EUR 7.90 per common share at the end of the third quarter.
The gross leverage ratio further improved to 30.9% in the third quarter, driven by higher shareholders' equity, and is on track to end up within the target range of 26 to 30% by the end of 2014. Excess capital in the holding declined to EUR 1.5 billion, as the cash allocated to the interim dividend, in addition to interest payments and operating expenses were only partly offset by proceeds from the divestment of the stake in the joint venture with Caja de Badajoz.
At September 30, 2014, Aegon's Insurance Group Directive (IGD)[a] solvency ratio was 202%. Earnings generated in the quarter, were offset by the payment of the interim dividend over the first half of 2014 and the impact of a change in the valuation methodology for mortgages in the Netherlands. This adjustment reflects the use of additional market observable data points, including market transactions. This resulted in a reduction of available capital of EUR 0.5 billion, which is expected to be recovered over the lifetime of the mortgage portfolio. The IGD ratio in the Netherlands, excluding Aegon Bank, declined to ~220%, driven primarily by this valuation adjustment (25 percentage points) and a high new business strain resulting from a large pension contract gain.
The capital in excess of the S&P AA threshold in the United States increased to USD 1.1 billion, resulting from earnings generated in the third quarter of 2014. The Pillar I ratio in the United Kingdom, including the with-profit fund, was stable at ~145%, as the negative impact of de-risking and business transformation costs offset earnings generated during the quarter.
On October 16, Aegon announced that it will sell its Canadian operations to Wilton Re for EUR 423 million. This transaction will result in a book loss of EUR 0.8 billion at closing, while the proceeds will be used to redeem the USD 500 million 4.625% senior bond due December 2015. The combination of the divestment and the non-refinancing of the bond will keep Aegon's leverage ratio unchanged on a pro forma basis, while its fixed charge cover ratio will improve by 0.6 times.
Recognizing the improvements Aegon has made to both its leverage and fixed charge coverage ratios, Fitch has revised the outlook for its ratings on Aegon companies from negative to stable. Fitch rates Aegon N.V. (A), Aegon Americas (AA-), Aegon UK (AA-) and Aegon Bank (A-). Additionally, Moody's has affirmed its ratings on Aegon companies with a stable outlook. Moody's rates Aegon N.V. (A3) and Aegon Americas (A1).
Cash flows
Operational free cash flows were EUR (124) million in the third quarter of 2014. Excluding one-time items of EUR (300) million and market impacts of EUR (99) million, operational free cash flows amounted to EUR 275 million. This was below the average level achieved in previous quarters as the new business strain reflected a large pension contract gain in the Netherlands. Market impacts during the third quarter were mainly the result of lower interest rates. One-time items were primarily related to the valuation framework change for mortgages in the Netherlands.
Financial overview, Q3 2014 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 (178) 82 22 (6) - (79)
Individual savings and
retirement products 236 - - (1) - 236
Pensions 73 40 5 3 - 120
Non-life - - - 7 - 7
Distribution - 5 - - - 5
Asset Management - - - 33 - 33
Other - - - - (37) (37)
Share in underlying
earnings before tax of
associates 2 - 1 4 - 7
Underlying earnings
before tax 134 127 28 40 (37) 291
Fair value items (159) (101) - - (36) (296)
Realized gains / (losses)
on investments 14 52 10 8 - 85
Net impairments 21 (2) - (14) - 5
Other income / (charges) (27) (6) (10) 14 (1) (29)
Run-off businesses (31) - - - - (31)
Income before tax (48) 70 27 48 (74) 23
Income tax 52 (26) (2) (12) 17 29
Net income 4 44 25 35 (57) 52
Net underlying earnings 107 98 31 25 (27) 235
Employee numbers
Sep. 30, Dec. 31,
2014 2013
Employees 28,278 26,891
of which agents 5,466 4,753
of which Aegon's share of
employees in joint
ventures and associates 1,572 1,462
Full version press release
Use this link for the full version of the press release: http://www.aegon.com/en/Home/Investors/News-presentations/Press-Releases/2014/Earnings-Q3-2014/
ADDITIONAL INFORMATION
The Hague - November 13, 2014
Presentation
The conference call presentation is available on aegon.com as of 7.30 a.m. CET.
Supplements
Aegon's Q3 2014 Financial Supplement and Condensed Consolidated Interim Financial Statements are available on aegon.com.
Conference call including Q&A
9:00 a.m. CET
Audio webcast on aegon.com
Dial-in numbers
United States: +1-646-254-3365
United Kingdom: +44-203-427-0503
The Netherlands: +31-20-721-9158
Two hours after the conference call, a replay will be available on aegon.com.
Aegon’s roots go back 170 years – to the first half of the nineteenth century. Since then, Aegon has grown into an international company, with businesses in more than 25 countries in the Americas, Europe and Asia. Today, Aegon is one of the world’s leading financial services organizations, providing life insurance, pensions and asset management. Aegon’s purpose is to help people take responsibility for their financial future. More information: aegon.com.
DISCLAIMERS
Cautionary note regarding non-IFRS measures
This document includes the following non-IFRS financial measures: underlying earnings before tax, income tax, income before tax and market consistent value of new business. These non-IFRS measures are calculated by consolidating on a proportionate basis Aegon's joint ventures and associated companies. The reconciliation of these measures, except for market consistent value of new business, to the most comparable IFRS measure is provided in note 3 'Segment information' of Aegon's Condensed Consolidated Interim Financial Statements. Market consistent value of new business is not based on IFRS, which are used to report Aegon's primary financial statements and should not be viewed as a substitute for IFRS financial measures. Aegon may define and calculate market consistent value of new business differently than other companies. Aegon believes that these non-IFRS measures, together with the IFRS information, provide meaningful information about the underlying operating results of Aegon's business including insight into the financial measures that senior management uses in managing the business. In addition, return on equity is a ratio using a non-GAAP measure and is calculated by dividing the net underlying earnings after cost of leverage by the average shareholders' equity excluding the preferred shares, the revaluation reserve and the reserves related to defined benefit plans.
Local currencies and constant currency exchange rates
This document contains certain information about Aegon's results, financial condition and revenue generating investments presented in USD for the Americas and GBP for the United Kingdom, because those businesses operate and are managed primarily in those currencies. Certain comparative information presented on a constant currency basis eliminates the effects of changes in currency exchange rates. None of this information is a substitute for or superior to financial information about Aegon presented in EUR, which is the currency of Aegon's primary financial statements.
Forward-looking statements
The statements contained in this document that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: aim, believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, goal, should, would, is confident, will, and similar expressions as they relate to Aegon. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Aegon undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties. Such risks and uncertainties include but are not limited to the following:
- Changes in general economic conditions, particularly in the United States, the Netherlands and the United Kingdom;
- Changes in the performance of financial markets, including emerging markets, such as with regard to:
- The frequency and severity of defaults by issuers in Aegon's fixed income investment portfolios;
- The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities Aegon holds; and
- The effects of declining creditworthiness of certain private sector securities and the resulting decline in the value of sovereign exposure that Aegon holds;
- Changes in the performance of Aegon's investment portfolio and decline in ratings of Aegon's counterparties;
- Consequences of a potential (partial) break-up of the euro;
- The frequency and severity of insured loss events;
- Changes affecting longevity, mortality, morbidity, persistence and other factors that may impact the profitability of Aegon's insurance products;
- Reinsurers to whom Aegon has ceded significant underwriting risks may fail to meet their obligations;
- Changes affecting interest rate levels and continuing low or rapidly changing interest rate levels;
- Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates;
- Changes in the availability of, and costs associated with, liquidity sources such as bank and capital markets funding, as well as conditions in the credit markets in general such as changes in borrower and counterparty creditworthiness;
- Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets;
- Changes in laws and regulations, particularly those affecting Aegon's operations, ability to hire and retain key personnel, the products Aegon sells, and the attractiveness of certain products to its consumers;
- Regulatory changes relating to the insurance industry in the jurisdictions in which Aegon operates;
- Changes in customer behavior and public opinion in general related to, among other things, the type of products also Aegon sells, including legal, regulatory or commercial necessity to meet changing customer expectations;
- Acts of God, acts of terrorism, acts of war and pandemics;
- Changes in the policies of central banks and/or governments;
- Lowering of one or more of Aegon's debt ratings issued by recognized rating organizations and the adverse impact such action may have on Aegon's ability to raise capital and on its liquidity and financial condition;
- Lowering of one or more of insurer financial strength ratings of Aegon's insurance subsidiaries and the adverse impact such action may have on the premium writings, policy retention, profitability and liquidity of its insurance subsidiaries;
- The effect of the European Union's Solvency II requirements and other regulations in other jurisdictions affecting the capital Aegon is required to maintain;
- Litigation or regulatory action that could require Aegon to pay significant damages or change the way Aegon does business;
- As Aegon's operations support complex transactions and are highly dependent on the proper functioning of information technology, a computer system failure or security breach may disrupt Aegon's business, damage its reputation and adversely affect its results of operations, financial condition and cash flows;
- Customer responsiveness to both new products and distribution channels;
- Competitive, legal, regulatory, or tax changes that affect profitability, the distribution cost of or demand for Aegon's products;
- Changes in accounting regulations and policies or a change by Aegon in applying such regulations and policies, voluntarily or otherwise, may affect Aegon's reported results and shareholders' equity;
- The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Aegon's ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions;
- Catastrophic events, either manmade or by nature, could result in material losses and significantly interrupt Aegon's business; and
- Aegon's failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving and excess capital and leverage ratio management initiatives.
Further details of potential risks and uncertainties affecting Aegon are described in its filings with the Netherlands Authority for the Financial Markets and the US Securities and Exchange Commission, including the Annual Report. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, Aegon expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Aegon's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Media relations
Marcel van Beusekom
+31-(0)70-344-8572
gcc@aegon.com
Investor relations
Willem van den Berg
+31-(0)70-344-8305
ir@aegon.com
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