Aegon Ltd. · EURONEXT:AGN
Aegon — FPK CRO Conference 2008
11 slides from Aegon's conference presentation, Jun 6, 2008
Slide 1: FPK CRO Conference June 6, 2008
FPK CRO Conference June 6, 2008 Tom Grondin, CRO, AEGON NV FPK CRO Conference, June 2008 1
Slide 2: The day after subprime
The day after subprime Risk management Regulation Liquidity Lessons learned and not FPK CRO Conference, June 2008 2
Slide 3: Crisis is the adrenaline for risk management
Crisis is the adrenaline for risk management o Crisis situations are becoming “normal” and “expected” o As with other events, demands on resources will continue to increase – And the need for resources will increase o Capital markets and market consistent valuation will increasingly expose excesses
Slide 4: Behind the headline subprime numbers
Behind the headline subprime numbers Combined-loan-to-value ratio Limited borrower documentation % Source: Fitch Ratings % Source: Fitch Ratings 90 50 40 85 30 80 20 10 75 2000 2001 2002 2003 2004 2005 2006 0 2000 2001 2002 2003 2004 2005 2006 AEGON subprime investments in USD billions 5 - Structure
Slide 5: New rules and their hazards
New rules and their hazards o Rules and rule based capital models Paulson, March 14th: contributed to the subprime crisis "Regulation needs to catch up with innovation and help restore investor o Tendency to follow rules: justification to confidence but not go so far as to maximize performance, lead
Slide 6: At AEGON, liquidity risk management is given a lot of attention
At AEGON, liquidity risk management is given a lot of attention o AEGON liquidity risk management methodology dates back to early 90’s – Methodology routinely reviewed to ensure best practices always employed o We have anticipated the extreme possibility of ‘frozen’ markets for years – AEGON’s liqui
Slide 7: Liquidity revelation
Liquidity revelation o Insurance industry should realize how much excess liquidity they hold o Crisis will not only confirm the industry has a strong liquidity position, awareness to it’s hidden value will also surface o The price of liquidity going forward should remain structurally higher o Should
Slide 8: Lessons learned
Lessons learned o Lesson learnt from the 2001-2002 crisis – Risk management has leaped forward in the industry – The insurance industry much better prepared to whether capital market storms o Risk management is strengthened once again – With the 1 in 100 year events occurring every 5 years, it will
Slide 9: Lessons not learned
Lessons not learned o Greed and fear are the two constants in the capital markets – This is repeatable o After a crisis settles, rules that helped caused it are replaced by more rules o Will this be the impetus for a comprehensive principles based valuation and regulatory framework? FPK CRO Conferen
Slide 10: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements Cautionary note regarding 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 ar
Slide 11: For questions please contact Investor Relations
Unlocking the global potential For questions please contact Investor Relations +31 70 344 8305 ir@aegon.com P.O. Box 85 2501 CB The Hague The Netherlands FPK CRO Conference, June 2008 11