Aegon Ltd. · EURONEXT:AGN
Aegon — Citi Financial Services Conference 2010
18 slides from Aegon's conference presentation, Mar 10, 2010
Slide 1: Execution of strategy
Execution of strategy Alex Wynaendts CEO New York City – March 10, 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 Underlying earnings before tax (2009) Value of new business (2009) 7% 6% 1% 5% A
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 # 6 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 #6 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 Obtained license in
Slide 10: Execution of strategy demonstrated by increased results
Execution of strategy demonstrated by increased results Underlying earnings before tax Value of new business (EUR million) (EUR million) 233 404 427 216 351 201 181 169 -22 -181 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Revenue-generating investments New life sales (EUR billion) (E
Slide 11: 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 – Enhance web capabilities – Reduce number of administration p
Slide 12: Successful cost reduction measures
Successful cost reduction measures o Cost reduction measures of EUR 250 million in 2009 o Exceeding target for 2009 of EUR 150 million o Decrease of 5% (EUR 150 million) on a comparable basis* mainly as a result of – Reduction of headcount – More efficient distribution o Cost reduction measures are
Slide 13: Impairments at lowest level in six quarters
Impairments at lowest level in six quarters o Impairments are trending down, but continue at elevated levels o Full year US net credit impairments of 120 bps, above the long-term average Impairments (EUR million) 501 407 393 146 386 82 63 102 285 93 209 355 330 64 284 325 192 145 Q3 08 Q4 08 Q1 09 Q
Slide 14: Continued strong capital position
Continued strong capital position Excess capital above AA capital adequacy requirements EUR 3.7 billion Capital preservation initiatives in 2009 EUR 3.3 billion 60% is capital efficiency with generally no material earnings impact 40% is de-risking Insurance Group Directive: Capital surplus EUR 6.7 b
Slide 15: Continued focus on execution of strategy
Continued focus on execution of strategy Full repayment to the Dutch State o Repaid one-third of the EUR 3 billion Reallocate capital towards businesses with higher growth and return prospects o Freed-up EUR 3.3 billion in 2009 – 60% capital efficiency and 40% de-risking o Running off institutional
Slide 16: 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. 16
Slide 17: Q&A
Q&A Local knowledge. Global power. 17
Slide 18: For further questions please contact Investor Relations
For further questions please contact Investor Relations +31 70 344 8305 ir@aegon.com P.O. Box 85 2501 CB The Hague The Netherlands Local knowledge. Global power. 18