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The Hague - May 15, 2013
Annual General Meeting of Shareholders Aegon N.V. Jaarlijkse - - PowerPoint PPT Presentation
Annual General Meeting of Shareholders Aegon N.V. Jaarlijkse - - PowerPoint PPT Presentation
The Hague - May 15, 2013 Annual General Meeting of Shareholders Aegon N.V. Jaarlijkse Algemene Vergadering van Aandeelhouders Aegon N.V. Transform Tomorrow Jan Nooitgedagt, CFO & Member of the Executive Board Financial markets have improved,
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Financial markets have improved, but remain challenging
20 30 40 50 60 70 80 90 100 110 120 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 S&P 500 FTSE AEX 1 2 3 4 5 6 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 US UK NL 500 1000 1500 2000 2500 Jan-10 Jan-11 Jan-12 Jan-13 Portugal Ireland Spain Italy
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2 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Bloomberg Financial Conditions Index EU Bloomberg Financial Conditions Index US
Strengthening of equity markets
(January 2008 = 100)
Drop in financial market stress indicators Drop in Eurozone sovereign spreads
(2-year bonds, bps)
However, interest rates remain persistently low
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- Americas: Earnings up on business
growth and a stronger dollar
- The Netherlands: Increase due to
cost savings, lower funding costs, and the wind up of several contracts in Pensions
- UK: Earnings up on cost reductions
and non-recurrence of exceptional charges
- New markets: Higher results from
Aegon Asset Management and Asia partly offset by Spain and Central & Eastern Europe
- Holding & other: Improved as part of
corporate center expenses being charged to the units
Earnings up 17% on growth, cost reductions and favorable markets
1,522 1,787 2011 2012
Underlying earnings before tax
(EUR million)
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- Fair value items gain
- Realized gains on investments
- Lower impairments
- Charge related to acceleration of
product improvements for unit- linked policies in the Netherlands
- Book gains on divestments –
Prisma and Banca Cívica joint venture
Net income benefits from fair value items and investment gains
872 1,571 2011 2012
Net income
(EUR million)
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- EUR 188 million in cost reductions
- Non-recurrence of restructuring
charges
- 6% lower year-on-year cost base
- Cost reductions in Americas;
successful restructuring programs in UK and the Netherlands
- Operating expenses include
continued investments in new propositions
Operating expenses reduced by 6% while investing in new propositions
Operating expenses
(EUR million)
3,442 3,241 2011 2012
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- New life sales increase 7% to
EUR 2 billion
- Gross deposits 25% higher at
EUR 39.5 billion
- Accident & health and general
insurance up 18% to EUR 823 million
- Focus on profitable new business
demonstrated by higher MCVNB of EUR 619 million
Sales increase demonstrates strength of franchise
* Total sales consists of new life sales, new premiums accident & health, general insurance and 1/10 of gross deposits
Sales
(EUR billion)
5.7 6.7 2011 2012
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Continued delivery of strong results in first quarter
439 461 445 Q1 12 Q4 12 Q1 13
Sales/MCVNB
(EUR million)
Operating expenses
(EUR million)
Underlying earnings before tax
(EUR million)
Operational free cash flows*
(EUR million)
1,758 1,813 1,738 125 204 232 Q1 12 Q4 12 Q1 13 766 835 804 Q1 12 Q4 12 Q1 13 405 619 560 Q1 12 Q4 12 Q1 13
Fee-based earnings
(% of UEBT)
Return on equity
(%)
35 36 33 Q1 12 Q4 12 Q1 13 7.1 7.4 6.3 Q1 12 Q4 12 Q1 13
* Excluding market impact
- Market consistent value new business
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Excess capital in holding: EUR 1.8 billion at end first quarter 2013
Continued strong capital position at the end of the first quarter
224% ~485% ~120% ~265%
Group IGD US RBC ratio UK Pillar I Netherlands IGD
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- Strong growth in earnings and profitable sales
- Maintained strong capital position
- Operating expenses reduced while investing in new propositions
- Distribution expanded – new partners, platforms and on-line propositions
2012 a strong basis for the future
Well positioned for the future
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