Slide 1: Delivering in a world of extremes
Delivering in a world of extremes Alex Wynaendts CEO September 2019 Helping people achieve a lifetime of financial security
Slide 2: Focus on growth
Focus on growth EGON
Slide 3: Simplification and growth to create value
Simplification and growth to create value Pivoting to sustainable growth after simplifying the business and optimizing the portfolio 2010 - 2015 2016 - 2018 2019 > • Doubling of free cash flow • Improving operational • Profitable sales growth • Changing business profile performance • Sustainably gro
Slide 4: 1H19 results in context of 2019 – 2021 targets
1H19 results in context of 2019 – 2021 targets Target delivery Targets 2019 - 2021 Results 1H 2019 Normalized capital generation1 EUR 4.1 billion cumulative for 2019 – 2021 EUR 714 million +20% vs 1H18 Dividend pay-out ratio Of normalized capital generation1, 2 45 – 55 % 43% for 1H19, on track for
Slide 5: Strategic categories
Active portfolio management Grouping our businesses in three distinct categories Normalized capital generation1 (in EUR billion, cumulative for 3 years) 4.1 Aegon’s growth strategy • Actively manage portfolio 3.1 Scale-up for Future Strategic categories • Distinct categories of businesses • Focused
Slide 6: Increasingly diversified remittances
Increasingly diversified remittances Improvements in business profile and operational performance drive diversification Total gross remittances (in %; amounts in EUR billion) • US consistently paying remittances supplemented by 1.9 1.1 1.8 1.6 0.8 one-time dividends following divestments 100% 80% 60
Slide 7: Addressing investor concerns
Addressing investor concerns 7
Slide 8: Addressing investor concerns
Addressing investor concerns 1 2 Impact of market movements on Quality of VA book NL solvency and in US capital generation 3 4 5 Credit risk LTC reserve Relevance of smaller sensitivity in US sufficiency businesses 8
Slide 9: Solvency II ratio Aegon NL negatively impacted by spread movements in 1H19
Solvency II ratio Aegon NL negatively impacted by spread movements in 1H19 Limited impact of lower interest rates on Solvency II ratio Aegon NL Solvency II 2H18 1H19 Movement ratio Mortgage spreads 114 bps 171 bps +57 bps -12% EIOPA VA 24 bps 9 bps - 15 bps -27% Other, incl. interest rates +0% Total
Slide 10: Normalized capital generation of Aegon NL is sensitive to market movements
Normalized capital generation of Aegon NL is sensitive to market movements • Lower interest rates lead to reduced normalized capital generation, as UFR drag on capital generation increases • Spread movements – which negatively impact the Solvency II ratio in 1H19 – will lead to higher future capital
Slide 11: Focus for NL to resume remittances to the group
Focus for NL to resume remittances to the group Capital position to benefit from mortgage margin normalization and management actions • Return of mortgages spreads to long-term average would bring Aegon NL back to target range1 • Management actions focus on releasing capital to increase Solvency II
Slide 12: Well-diversified US business with high quality VA book
Well-diversified US business with high quality VA book Decided in 2003 to stop offering variable annuities with income benefits VA assets as part of total US admitted assets1 Account balance VA with living benefits2 (Per 1H 2019, in %)) (Per 1H 2019, in %) 60% 100% 50% 40% 30% 50% 20% 10% 0% 0% Aego
Slide 13: Manageable sensitivity to US credit risk
Manageable sensitivity to US credit risk • General Account significantly decreased due to increased focus on fee-based businesses resulting in divestments and product re-designing • US RBC ratio well positioned to absorb credit losses - US RBC ratio remains well above bottom-end of target range of 3
Slide 14: Long Term Care continues to develop in line with expectations
Long Term Care continues to develop in line with expectations LTC actual versus expected claims ratio • Over the last three years, actual LTC experience (in %, in USD million, actively managed block) under IFRS tracked well against management’s best estimate 140% 80 130% 60 • Management action (hedg
Slide 15: Successfully growing in attractive markets
Successfully growing in attractive markets IFRS capital 1H191 Growth through 1H19 Total assets: USD 9.6bn EUR 0.6 billion 15.6% CAGR (since 2013) Total premiums: EUR 102m joint-venture EUR 0.7 billion2 12.3% CAGR (since 2013) Total customers: 231,000 EUR 0.6 billion3 25.9% CAGR (since 2016) 1. IFRS
Slide 16: To sum it up:
To sum it up: Diversified Clear actions to Effective hedge Investing in growth business address concerns programs opportunities Strongly positioned to sustainably grow dividend 16
Slide 17: Appendix
Appendix For questions please contact Investor Relations +31 70 344 8305 ir@aegon.com P.O. Box 85 2501 CB The Hague The Netherlands Helping people achieve a lifetime of financial security
Slide 18: Disclaimer
Disclaimer Cautionary note regarding non-IFRS-EU measures This document includes the following non-IFRS-EU financial measures: underlying earnings before tax, income tax, income before tax, market consistent value of new business and return on equity. These non-IFRS-EU measures are calculated by con
Slide 19: Well-managed capital sensitivities
1H 2018 Results Well-managed capital sensitivities Solvency II sensitivities (in percentage points, 1H 2019) Scenario Group NL UK US US RBC Equity markets +25% +13% +4% -4% +35% +46% Equity markets -25% -14% -8% -3% -25% -27% Interest rates +50 bps +6% +6% +2% +7% +8% Interest rates -50 bps -8% -4%