Aegon Ltd. · EURONEXT:AGN
Aegon — Shareholder Meeting (April 2006)
32 slides from Aegon's shareholder meeting presentation, Apr 25, 2006
Slide 1: Donald J. Shepard, Chairman Executive Board
Donald J. Shepard Chairman Executive Board AEGON N.V. Voorzitter Raad van Bestuur AEGON N.V. Annual General Meeting of Shareholders – April 25, 2006 1
Slide 2: Good Progress in 2005
Good Progress in 2005 Strong financial performance Improved position in AEGON’s three major markets Expansion strategy on track Annual General Meeting of Shareholders – April 25, 2006 2
Slide 3: Strong Financial Performance
Strong Financial Performance Operating earnings before tax increased 21% to EUR 2,147 million Net income increased 21% to EUR 2,732 million New life sales increased 9% for the year to EUR 2,539 million Strong capital base and cash flow generation Annual General Meeting of Shareholders – April 25, 20
Slide 4: Improved position in AEGON's three major markets
Strong financial performance Improved position in AEGON’s three major markets Expansion strategy on track Annual General Meeting of Shareholders – April 25, 2006 4
Slide 5: Americas – New Life Sales
Americas – New Life Sales Standardized new life sales (in USD mln) 1,400 1,200 +7% BOLI/COLI 1,000 Reinsurance 800 Retail 600 400 200 0 2004 2005 US new life sales increased 7%, driven in particular by strong reinsurance sales, which were up 46% Continue to focus on improving returns in a challe
Slide 6: Growth within AEGON USA's Pension Group
Growth within AEGON USA’s Pension Group (in USD mln) Pension Group assets 43,798* 45,000 40,000 2002 – 2005 : CAGR of 21% 35,000 30,000 Diversified Investment 24,570 25,000 Advisors 20,000 15,000 10,000 5,000 Transamerica Retirement 0 Services 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 *Exclu
Slide 7: Developments in AEGON The Netherlands
Developments in AEGON The Netherlands Unique group pension capability in all three key areas: administration, insured pension solutions and asset management New Levensloop (Lifecycle) product successfully introduced Administrative performance improved considerably Successfully developed new disabili
Slide 8: Strengthening AEGON UK's IFA channel
Strengthening AEGON UK’s IFA channel 1400 Advisor Headcount (RI) Positive Solutions is a national 1200 IFA that provides management 1000 services to Registered Individuals 800 (RI) through an e-platform 600 Accelerated acquisition of remaining 40% of Positive 400 Solutions 200 Number of Registered I
Slide 9: AEGON UK – Product Mix
AEGON UK – Product Mix 2002 2005 8% 12% 3% 9% 9% 51% 11% 45% 29% 23% Group Individual Pensions Bonds Annuities Risk Pensions AEGON UK has continued to see a favourable change in product mix with higher margin business up from 20% in 2002 to 32% in 2005 Annual General Meeting of Shareholders – April
Slide 10: Expansion strategy on track
Strong financial performance Improved position in AEGON’s three major markets Expansion strategy on track Annual General Meeting of Shareholders – April 25, 2006 10
Slide 11: AEGON present in larger Eastern European markets
AEGON present in larger Eastern European markets Life and pensions Market growth premiums 1999-2004 USD million Percent Russia 3,544 16% Poland Poland 2,828 12 Czech Czech Republic 1,720 Republic 20 Hungary Hungary 1,179 11 Slovakia Slovakia 603 13 Slovenia 531 21 Croatia 260 17 Romania 251 55 Bulga
Slide 12: Developments in Other Countries – Central & Eastern Europe
Developments in Other Countries – Central & Eastern Europe Strong growth potential for life and pension products with over 65 million people in AEGON CEE countries Improvements in AEGON Hungary’s sales organization already generating results in 4Q05 new life sales AEGON Poland record sales in 4Q05,
Slide 13: AEGON Spain – Expansion Through the Bank Channel
AEGON Spain – Expansion Through the Bank Channel P&C business divested to concentrate on partnerships with savings banks AEGON Spain generated total life premiums of EUR 126 mln and new life sales of EUR 25 mln Partnership with CAM generated total life premiums of EUR 560 mln (+12%) and new life sal
Slide 14: AEGON Pension Network
AEGON Pension Network First international network dedicated to providing cross border group pensions solutions for multi-national corporate clients and their employees Developed with the expertise of AEGON’s partner in France, La Mondiale, as well as with the cooperation of AEGON subsidiaries in the
Slide 15: Developments in Other countries - Asia
Developments in Other countries - Asia Roll out across China from Shanghai to Beijing, Nanjing and Shandong – reaching a population of over 150 mln people AEGON-CNOOC’s multi-channel Shandong distribution strengthened with the Nanjing addition of brokers Growth on track – top 10 foreign life insurer
Slide 16: Overall a Good Year
Overall a Good Year Improved position in AEGON’s three major markets Expansion strategy delivering results AEGON is well-positioned to deliver the products and services that will lead to the continued growth of our business Annual General Meeting of Shareholders – April 25, 2006 16
Slide 17: Jos Streppel, Member Executive Board
Jos Streppel Member Executive Board AEGON N.V. Lid Raad van Bestuur AEGON N.V. Annual General Meeting of Shareholders – April 25, 2006 17
Slide 18: Financial Performance
Financial Performance ∆ constant exchange (in EUR mln, except per share data) FY 2005 FY 2004 ∆ rates Operating earnings before tax 2,147 1,772 21% 21% Net gains/losses on investments and impairment charges (before tax) 1,171 1,020 15% 15% Other non operating income/(charges) 277 (22) - - Share in p
Slide 19: AEGON Group – Sales Overview
AEGON Group – Sales Overview (in EUR mln) FY 2005 FY 2004 ∆ 4Q 2005 4Q 2004 ∆ APE Life Insurance 2,539 2,320 9% 643 639 1% Annuity and institutional guaranteed products deposits 15,414 14,312 8% 3,604 2,735 32% Total gross premiums 18,882 18,329 3% 5,021 4,891 3% Off balance sheet production 17,425
Slide 20: Americas – Sales Overview
Americas – Sales Overview (in USD mln) FY 2005 FY 2004 ∆ 4Q 2005 4Q 2004 ∆ APE Life Insurance 1,166 1,087 7% 287 303 (5%) Institutional Guaranteed Products 10,712 9,487 13% 2,121 1,649 29% Fixed Annuities 2,221 3,017 (26%) 626 605 3% Variable Annuities 6,260 5,278 19% 1,529 1,354 13% Off b/s product
Slide 21: Americas – Operating Earnings
Americas – Operating Earnings (in USD mln) FY 2005 FY 2004 ∆ 4Q 2005 4Q 2004 ∆ Operating earnings before tax 2,365 2,026 17% 667 427 56% Income before tax 2,717 2,112 29% 727 510 43% Net income 2,014 1,670 21% 599 506 18% Annual General Meeting of Shareholders – April 25, 2006 21
Slide 22: The Netherlands – Sales Overview
The Netherlands – Sales Overview (in EUR mln) FY 2005 FY 2004 ∆ 4Q 2005 4Q 2004 ∆ APE Life Insurance 231 226 2% 62 72 (14%) Savings deposits 3,478 2,881 21% 939 568 65% Off b/s production 864 789 10% 149 178 (16%) Strong group pension production by capturing several large contracts Individual li
Slide 23: The Netherlands – Operating Earnings
The Netherlands – Operating Earnings (in EUR mln) FY 2005 FY 2004 ∆ 4Q 2005 4Q 2004 ∆ Operating earnings before tax 322 196 64% 102 69 48% Income before tax 1,286 1,097 17% 229 472 (51%) Net income 1,014 920 10% 207 444 (53%) Annual General Meeting of Shareholders – April 25, 2006 23
Slide 24: UK – Sales Overview
UK – Sales Overview (in GBP mln) FY 2005 FY 2004 ∆ 4Q 2005 4Q 2004 ∆ APE Life Insurance 687 662 4% 196 169 16% Off b/s production 1,032 143 - 85 60 42% New life sales increased 4% in 2005 and 16% in the fourth quarter, making it the highest sales quarter ever in the UK Broader range of non-pensi
Slide 25: UK – Operating Earnings
UK – Operating Earnings (in GBP mln) FY 2005 FY 2004 ∆ 4Q 2005 4Q 2004 ∆ Operating earnings before tax 111 109 2% 30 33 (9%) Income before tax 186 150 24% 50 49 2% Net income 98 82 20% 34 24 42% Excluding the effect of the accelerated acquisition of Positive Solutions operating earnings before tax i
Slide 26: Other countries – Sales Overview
Other countries – Sales Overview (in EUR mln) FY 2005 FY 2004 ∆ 4Q 2005 4Q 2004 ∆ APE Life Insurance 368 245 50% 54 92 (41%) Off b/s production 318 204 56% 80 68 18% New life sales increased 50% driven by strong sales in Taiwan in the first half of 2005 Strong off balance sheet production driven
Slide 27: Other countries – Operating Earnings
Other countries – Operating Earnings (in EUR mln) FY 2005 FY 2004 ∆ 4Q 2005 4Q 2004 ∆ Operating earnings before tax 44 113 (61%) 5 30 (83%) Income before tax 248 135 84% 11 39 (72%) Net income 211 101 109% 10 29 (66%) Decrease in operating earnings primarily reflects lower contributions from Spain,
Slide 28: Shareholders' Equity Development
Shareholders’ Equity Development (in EUR mln) 19,276 152 330 1,515 76 2,732 (132) (272) 14,875 Shareholders’ equity increased 30% to EUR 19,276 million in 2005 Shareholders' Net income Dividend paid Currency Sold ow n Change fair Coupon on Other Shareholders' equity shares value reserve perpetuals e
Slide 29: Donald J. Shepard, Chairman Executive Board
Donald J. Shepard Chairman Executive Board AEGON N.V. Voorzitter Raad van Bestuur AEGON N.V. Annual General Meeting of Shareholders – April 25, 2006 29
Slide 30: Share price development vs. US peers (1 year, USD)
Share price development vs. US peers (1 year, USD) Share price development in USD as of AGM April 2005 Manulife AEGON (USD) Prudential US Principal Lincoln Financial Metlife Inc Nationwide Hartford AIG US insurance sector 0% 30% 10% 20% 40% 50% Annual General Meeting of Shareholders – April 25, 2006
Slide 31: Share price development vs. European peers (1 year, local currency)
Share price development vs. European peers (1 year, local currency) Share price development in local currency as of AGM April 2005 AEGON (EUR) Allianz Zurich Financial ING AXA European insurance sector Prudential UK Aviva Fortis Generali 0% 20% 40% 50% 10% 30% Annual General Meeting of Shareholders
Slide 32: Valuation: ten year historical P/E development
Valuation: ten year historical P/E development 70 60 50 AEGON 40 ING Fortis 30 ABN AMRO 20 10 0 29/12/1996 29/12/1997 29/12/1998 29/12/2000 29/12/2001 29/12/2002 29/12/2005 29/12/1995 29/12/1999 29/12/2003 29/12/2004 Trailing P/E multiples Annual General Meeting of Shareholders – April 25, 2006 32