Slide 1: Fourth quarter 2009 results
Fourth quarter 2009 results Alex Wynaendts, CEO Press conference The Haggue,, Februaryy25 ,2010
Slide 2: Key messages
Key messages o Increased profitability o Continued execution of strategy o Robust sales demonstrating solid franchise o Strong increase in underlying earnings and net income o Continued strong capital position Local knowledge. Global power. 2
Slide 3: Execution of strategy demonstrated by increased results
Execution of strategy demonstrated by increased results Underlying earnings before tax Value of new business (EUR million) (EUR million) 233 404 427 216 351 201 181 169 -22 -181 181 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Revenue-generati ting investtmentts N New life lif salles
Slide 4: Continued focus on execution of strategy
Continued focus on execution of strategy Full repayment to the Dutch State o Repaid one-third of the EUR 3 billion Reallocate capital towards businesses with higher growth and return prospects o Freed-up EUR 0.8 billion in Q4 2009 – 60% capital efficiency and 40% de-risking o Running off institution
Slide 5: Robust life sales demonstrating solid franchise
Robust life sales demonstrating solid franchise o Strong increase in new life sales driven by all country units o Gross deposits* continue to be resilient as a result of strong pensions, saving and variable annuities deposits o Fixed annuities managed lower o Value of new business rises in all count
Slide 6: Strong increase in underlying earnings and net income
Strong increase in underlying earnings and net income o Solid underlying earnings in all country units o Net income driven by – Solid underlying earnings development – Continued decrease of impairments – Investment gains resulting from trading in bond portfolio Underlying earnings before tax Net inc
Slide 7: Net income driven by solid underlying earnings
Net income driven by solid underlying earnings o Solid underlying earnings in all country units o Fair value items impacted by hedges, interest rates, credit spreads o Investment I gains i resulting l i from f bond b d trading di o Impairments at lowest level in six quarters Underlying earnings to n
Slide 8: Successful cost reduction measures
Successful cost reduction measures o Cost reduction measures of EUR 250 million in 2009 o Exceeding target for 2009 of EUR 150 million o Decrease of 5% (EUR 150 million) on a comparable basis* mainly as a result of – Reduction of headcount – More efficient distribution o Cost reduction measures are
Slide 9: Impairments at lowest level in six quarters
Impairments at lowest level in six quarters o Impairments are trending down, but continue at elevated levels o Full year US net credit impairments of 120 bps, above the long-term average Impairments (EUR million) 501 407 393 146 386 82 63 102 285 93 209 355 330 64 284 325 192 145 Q3 08 Q4 08 Q1 09 Q
Slide 10: Continued strong capital position
Continued strong capital position o Repayment of one-third of the EUR 3 billion to the Dutch State o Capital preservations of EUR 0.8 billion in Q4, totalling EUR 3.3 billion in 2009 o Other is mainly related to higher regulatory and rating agency capital requirements o No material impact from ratin
Slide 11: Limited exposure to peripheral European sovereigns
Limited exposure to peripheral European sovereigns EUR million Portugal 58 Greece 92 Ireland 138 Italy 143 Spain 1,784 Local knowledge. Global power. 11
Slide 12: AEGON increases profitability during Q4 2009
AEGON increases profitability during Q4 2009 o Successful execution of strategy and restructuring continues o Robust sales demonstrating solid franchise o Strong increase in underlying earnings and net income o Continued strong capital position Local knowledge. Global power. 12
Slide 13: Q&A
Q&A Local knowledge. Global power. 13
Slide 14: Disclaimer
Disclaimer Forward-looking statements The statements contained in this presentation 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,