Aegon Ltd. · EURONEXT:AGN
Aegon — Goldman Sachs Conference 2010
20 slides from Aegon's conference presentation, Jun 9, 2010
Slide 1: Execution of strategy
Execution of strategy Alex Wynaendts CEO Madrid – June 9, 2010
Slide 2: AEGON at a glance
AEGON at a glance o Life insurance, pensions and investment products o Over 40 million customers across the globe o Presence in markets throughout the Americas, Europe and Asia o Approximately 28,000 employees worldwide o Revenues of EUR 30 billion (2009) Underlying earnings before tax (2009) Geogra
Slide 3: Building on leading market positions
Building on leading market positions # 2 Life reinsurance # 2 Group pensions # 2 Group pensions # 2 Life in Hungary # 9 of foreign-owned life # 4 Term life # 3 Annuities # 5 Individual life # 2 Pensions in Hungary insurers in China # 4 Universal life # 4 Individual # 5 Accident & health # 4 Property
Slide 4: AEGON's ambition
AEGON’s ambition “To be a global leader in helping customers secure their financial futures” o Rebalance capital allocation o Improve growth and returns o Reduce financial markets risks o Manage AEGON as an international company …resulting in sustainable profitable growth Local knowledge. Global pow
Slide 5: Americas – grow in Pensions and At-Retirement
Americas – grow in Pensions and At-Retirement Achievements Opportunities Execution o New distribution added o Largest and most sophisticated o Create common product portfolio life market, but still underserved across diverse distribution Retail life o Offering high quality service o More rational pr
Slide 6: The Netherlands – improve position in SME pensions
The Netherlands – improve position in SME pensions Achievements Opportunities Execution o Stable market share o Retreating government o Multi distribution channels and employers increases Retail life o Well positioned in broker channel o New generation products need for savings for later o Develop o
Slide 7: UK – leverage strong pension position for At-Retirement market
UK – leverage strong pension position for At-Retirement market Achievements Opportunities Execution o High proportion of non-mortgage o Significant protection gap o Ongoing investment in brand individual protection sales Retail life o Attractive product for o Development of simple bank o Exited Grou
Slide 8: Central & Eastern Europe – profitable growth
Central & Eastern Europe – profitable growth Achievements Opportunities Execution o Top 4 in Poland and Hungary o Market ready for new type of life o Launching new products, o Introduced innovative products in products developed with US expertise Retail Czech Republic and Slovakia o Roll-out of hous
Slide 9: Additional opportunities for growth
Additional opportunities for growth Achievements Opportunities Execution o Rank #9 in China* o Serving largest Asian markets: o Leverage best practices o Accelerated growth in India China, India, Japan o Benefit from strength of local Asia o Growth driven by improving partners o Introduced VA produc
Slide 10: Continued focus on execution of strategy in 2010
Continued focus on execution of strategy in 2010 Reallocate capital towards o Running off institutional spread-based business in the US on track Increased fee business, reduced spread business businesses with higher o o Distribution partner added for retirement products in the US growth and return p
Slide 11: Execution of strategy demonstrated by strong results
Execution of strategy demonstrated by strong results Underlying earnings before tax New life sales (EUR million) (EUR million) 478 488 567 557 415 538 390 484 492 -98 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Revenue-generating investments Gross deposits* (EUR billion) (EUR billion
Slide 12: Focus on operational excellence
Focus on operational excellence o Achieved significant improvement in customer service levels – Invest in improving operational capabilities o Building on strong brand names AEGON and Transamerica o Continue to be cost efficient operator Operating expenses (EUR million) – Enhance web capabilities 84
Slide 13: Impairments at lowest level in seven quarters
Impairments at lowest level in seven quarters o Impairments are trending down, but remain above AEGON’s long-term average expectations o Q1 2010 impairments partly driven by Ambac related impairments of EUR 43 million Impairments (EUR million) 416 501 385 394 286 212 150 146 91 64 101 93 69 11 325 3
Slide 14: Limited exposure to peripheral European sovereigns
Limited exposure to peripheral European sovereigns EUR million (as per March 31, 2010)* Portugal 59 Greece 108 Ireland 125 Italy 109 Spain 1,793 * At fair value Local knowledge. Global power. 14
Slide 15: Shareholders' equity continues to improve
Shareholders’ equity continues to improve o Shareholders' equity rose 20% sequentially, due to improvement in revaluation reserves, strengthening of the dollar and net income o Shareholders’ equity per common share of EUR 7.28 o Core capital* above target of 70% of total capital base Shareholders’ e
Slide 16: Continued strong capital position
Continued strong capital position o Excess capital above AA capital adequacy requirements stable at EUR 3.7 billion – Earnings contribution offset by higher capital requirements o Capital preservations of EUR 0.1 billion in Q1 2010 – Primarily the result of the reduction of institutional spread-base
Slide 17: Conclusions
Conclusions 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. 17
Slide 18: Q&A
Q&A Local knowledge. Global power. 18
Slide 19: For questions please contact Investor Relations
For questions please contact Investor Relations T: +31 70 344 8305 E: ir@aegon.com P.O. Box 85 2501 CB The Hague The Netherlands Local knowledge. Global power. 19
Slide 20: Disclaimer
Disclaimer Cautionary note regarding non-GAAP measures This press release includes certain non-GAAP financial measures: underlying earnings before tax and value of new business. The reconciliation of underlying earnings before tax to the most comparable IFRS measure is provided in Note 3 "Segment in