Aegon Ltd. · EURONEXT:AGN
Aegon — Q3 2009 Earnings Presentation
14 slides from Aegon's earnings presentation, Nov 12, 2009
Slide 1: Third quarter 2009 results
Third quarter 2009 results Jan Nooitgedagt, CFO Media conference call call, November 12, 12 2009
Slide 2: Key messages
Key messages o Return to profit o Repayment p y of EUR 1 billion o Further strengthened capital position o Revaluation reserves improve by EUR 3.3 billion in Q3 2009 o Profitable sales and net deposits, evidence of strong franchise o Continued execution of strategy Local knowledge. Global power. 2
Slide 3: Return to profit
Return to profit o Net income improved as a result of – improved result on fair value items, due to rising financial markets, partly offset by equity hedging – substantially lower impairments on US housing market related assets – reversal of prior year tax charges Underlying earnings to net income d
Slide 4: Underlying earnings impacted by exceptionals and de-risking
Underlying earnings impacted by exceptionals and de-risking o Exceptional items: – Provisions related to improvement of consistency of customer records in UK: EUR 43 million – Accelerated amortization of DPAC related to run off IMD: EUR 23 million o De-risking impact of EUR 40 million Underlying ear
Slide 5: Continued profitable sales, evidence of a strong franchise
Continued profitable sales, evidence of a strong franchise o US retail life sales up 11% o NL new life sales rose 63% o UK sales were stable o Net deposits* of EUR 2 billion more than double compared with Q2 09 o VNB of EUR 169 million impacted by lower contribution from the UK and Spain o IRR subst
Slide 6: Further reduced earnings sensitivity to equity markets
Further reduced earnings sensitivity to equity markets Estimated impact on net income* (EUR million) Q3 2009 Equity market Q2 2009 Q1 2009 ‐250 -20% +20% 225 ‐525 275 ‐900 400 ‐125 125 ‐225 -10% +10% 150 ‐400 200 Estimated impact on capital* (EUR million) Equity market ‐475 450 475 ‐475 -20% 20% +20
Slide 7: Cost saving measures target of EUR 150 million achieved
Cost saving measures target of EUR 150 million achieved o Cost savings target for 2009 achieved o Operating expenses* decreased by 5% YTD 2009 Operating expenses* (EUR million) 2,453 2,328 -5% Other Countries & Holding United Kingdom Netherlands Americas YTD 2008 YTD 2009 * Operating expenses at con
Slide 8: Excess capital supported by active capital management
Excess capital supported by active capital management Excess capital development Q3 2009 (EUR billion) 3.5 (0.2) (0.2) 0.2 0.6 0.3 0.4 1.0 (0.6) 4.8 Capital preservation of EUR 0.9 billion Q2 09 Excess Credit Rating 09 Excess capital Credit capital impairments Rating Interest ratesInterest migration
Slide 9: Successful capital release program
Successful capital release program Capital released (EUR billion) 4.2 o Capital efficiency – Ca. 60% of capital p p preservation initiatives 0.3 0 3 – Generally no material earnings impact 0.6 1.6 – High RoC benefit 0.3 0.4 – More efficient use of capital without g y changing meaningfully g g risk p
Slide 10: Strong improvement in revaluation reserves
Strong improvement in revaluation reserves o Shareholders’ equity increased significantly as a result of improved revaluation reserves and the issuance of common shares o Improvement in revaluation reserves driven by narrowing credit spreads and lower risk-free interest rates Core capital* developme
Slide 11: Continued execution of strategic priorities
Continued execution of strategic priorities R ll Reallocate t capital it l ttowards d bbusinesses i with ith hi higher h growth th and d return t prospects t o EUR 0.9 billion freed up in Q3 09 o Strong excess capital of EUR 4.8 billion o Continuation of capital preservation program o Final approval
Slide 12: Key messages
Key messages o Return to profit o Repayment p y of EUR 1 billion o Further strengthened capital position o Revaluation reserves improve by EUR 3.3 billion in Q3 2009 o Profitable sales and net deposits, evidence of strong franchise o Continued execution of strategy Local knowledge. Global power. 12
Slide 13: 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,
Slide 14: Q&A
Q&A For questions please contact Media Relations +31 70 344 8956 gcc-ir@aegon.com @ P.O. Box 85 2501 CB The Hague Th N The Netherlands h l d Local knowledge. Global power. 14