Aegon Ltd. · EURONEXT:AGN
Aegon — Investor Day (December 2009)
24 slides from Aegon's investor day presentation, Dec 2, 2009
Slide 1: Attractive US pension market
Attractive US pension market Kent Callahan President, Employer Solutions and Pensions Analyst and Investor Day, New York City, December 2, 2009
Slide 2: Key messages
Key messages o US employers becoming the financial foundation for American workers o Employer Solutions and Pensions coordination unlocks real “network” opportunities o US pension market offers potential for high growth and high return o AEGON pensions – a growth story o Quality of service and innov
Slide 3: Integration unlocks real network opportunities
Integration unlocks real network opportunities o Newly formed in first quarter 2009 o Consists of five business units that had previously operated autonomously o Common denominator is the point of entry to the customer base – an employer Mid to o large arge Supplemental upp emen a lifee Synthetic GI
Slide 4: Single provider creates benefits to the employer
Single provider creates benefits to the employer Employers benefit from single provider of retirement & employee benefit services o Lower due diligence costs o Lower implementation costs o Single payroll feed o Multi-product discounts o Single website solution o Consolidated benefit statements Local
Slide 5: Reaching all aspects of the employee benefit market
Reaching all aspects of the employee benefit market Market segment Client base Participant base Product offerings Non-qualified plan market o Executive benefits o Deferred compensation programs 2,263 149,475 o Supplemental executive retirement plans (SERPs) o Investment BOLI Synthetic GIC plan marke
Slide 6: Core objectives
Core objectives o Leverage strong existing client and advisor Maximize business relationships unit product sales o Expand distribution and retention o Increase customer and advisor satisfaction o Create operational efficiencies through Improve technology, people and process sharing profitability o R
Slide 7: Developing an execution plan to achieve our goals
Developing an execution plan to achieve our goals o Created an Employer Solutions and Pensions Leadership Council – Now fully operational – Currently managing 22 projects o Specific sales and operational goals o Early results meaningful: – Joint payroll launch – Community bank initiative – Total ret
Slide 8: Clark Consulting
Clark Consulting o One of the most respected brands in executive compensation consulting o 2,263 clients o 3,700 benefit plans administered o 149,475 participants serviced or insured o Network of 36 executive compensation professionals providing non-qualified products and comprehensive record keepin
Slide 9: AEGON Stable Value Solutions, Inc.
AEGON Stable Value Solutions, Inc. o A top 5 provider of synthetic GIC products providing a limited guarantee around portfolio of fixed income investment o USD 60 billion of notional value in 420 contracts o Work with 40 different investment managers o Increased fees in Q1 09 from 8 bps to 15 bps o
Slide 10: Transamerica Worksite Marketing
Transamerica Worksite Marketing o 7th largest provider of worksite sold voluntary benefits in US o Targets working middle class via payroll deduct life and supplemental health products o Extensive distribution network – enrollment firms, consulting firms, payroll firms and benefit advisors o 81.7 mi
Slide 11: Strong asset growth projected in private DC
Strong asset growth projected in private DC Projected asset growth in US pension market (2007-2012E) Private defined benefit 3.4% Private defined contribution 9.0% Individual retirement account 9.7% o Asset growth in the private defined contribution market projected to approach that of individual re
Slide 12: Employee participation rates remain high
Employee participation rates remain high o Employees continue to participate in their company’s employee-funded retirement savings plan o Employees at large companies are more likely to participate – The difference is more prevalent among full-time workers Participation rates in employee funded reti
Slide 13: Plan contribution rates – participants have stayed the course
Plan contribution rates – participants have stayed the course o Majority of workers have not changed their contribution rate while almost one-quarter have increased it o Median contribution rate is seven percent, with workers at large companies having a slightly higher rate � All companies 22% Media
Slide 14: Significant sales opportunities in the 401(k) market
Significant sales opportunities in the 401(k) market o Key industry stats – 49.8 million active participants – Median account balance is $43,700 – Median participant age 44 years old – Plan assets = $2.3 trillion o More than $100 billion up for grabs in 2009; projections for 2010 are expected to inc
Slide 15: AEGON's pension growth engine
AEGON’s pension growth engine o Extensive distribution network o Third party administrator (TPA) channel Mid – large o 403 (b) market changes Plan Market $20M $2B+ plan assets o Service driven culture o Innovation Small Plan Market <$20M plan assets Local knowledge. Global power. 15
Slide 16: Two respected brands in distinct pension markets
Two respected brands in distinct pension markets Diversified Investment Advisors Transamerica Retirement Services o Based in Los Angeles, California o Based in Purchase, New York o 643 employees o 1,021 employees o One of the top quality providers in the o One of the top retirement service providers
Slide 17: Extensive distribution network
Extensive distribution network Mid-Large Plan Market Micro-Small Plan Market (2008 sales) (2008 sales) 6% 17% 4% 30% 13% 49% 25% 24% 15% 6% ■ Advisor 4% 7% ■ Direct ■ Bank ■ Wire house ■ Consultant ■ Broker/Dealer Local knowledge. Global power. 17
Slide 18: AEGON pension growth has outpaced the market
AEGON pension growth has outpaced the market AEGON’s US pension assets (USD billion) o Growth driven by focus on underserved small and mid-sized plans o 12% compound annual growth rate 12% CAGR from 2000 to 2007 55.4 55.5 o Drop in market resulted in decline of 49 46 42.9 37.2 17% during 2008 24.6 2
Slide 19: Resilient pension franchise despite the financial crisis
Resilient pension franchise despite the financial crisis Solid gross deposits (USD billion) 3.7 3.4 o Strong results given dramatic 3.0 2.6 2.6 2.7 decline in value of take-over 2.5 2.4 assets o 1st quarter seasonality due to take-over plans in January Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09
Slide 20: Key to success - customer satisfaction
Key to success - customer satisfaction PLANSPONSOR® 2008 Chatham Partners 2008 Defined Contribution Survey Client Satisfaction Analysis Recipient of “40 Best in Class Cups” Exceeded the proprietary benchmark covering 23 categories in 76 of the 77 individual attributes and all 20 overall attributes,
Slide 21: Innovative ideas
Innovative ideas o Helped participants regain control of their retirement planning process o 1,500 customers downloaded workbook o 100,000 participants requested workbooks RECOVER Plan by Transamerica The new RECOVER Plan by Transamerica helps retirement plan participants regain control and restore
Slide 22: Lance Armstrong Foundation
Lance Armstrong Foundation Local knowledge. Global power. 22
Slide 23: The AEGON advantage
Conclusions The AEGON advantage o US employers becoming the financial foundation for American workers o Employer Solutions and Pensions coordination unlocks real “network” opportunities o US pension market offers potential for high growth and high return o AEGON pensions – a growth story o Quality o
Slide 24: Q&A
Q&A Local knowledge. Global power. 24