results The Hague - November 8, 2012 Jan Nooitgedagt CFO - PowerPoint PPT Presentation

Third quarter 2012 results The Hague - November 8, 2012 Jan Nooitgedagt CFO aegon.com

Strong earnings growth and increased value of new business  Underlying earnings up 31% on growth, lower expenses and favorable currencies  Limited impact from assumption changes on earnings Long term reinvestment yield assumptions unchanged ► Stable sales – higher accident & health sales offset by lower deposits   Increased value of new business following repricing, withdrawal of products and lower funding costs  Continued strong capital position and cash flows 2 2

Focus on delivering on targets Achieve return on equity of Grow underlying earnings Double fee-based earnings to Increase annual normalized before tax by operational free cash flow to € 1.3-1.6 30-35% 10-12% 7-10% billion by 2015 on average per annum of underlying earnings by 2015 by 2015 between 2010 and 2015 Return on equity Underlying earnings before tax Fee-based earnings Operational free cash flow* € 448 7.7% 31% 33% (8.6% excluding million run-off capital) Q3 2012 of Q3 2012 underlying earnings Q3 2012 Q3 12 compared to Q3 11 See slide 22 for main economic assumptions embedded in targets 3 * Excluding market impact of EUR (407) million

Earnings up 31% on growth, cost reductions and favorable currencies  Growth of the business mainly comes from US pensions, VA and indexed universal life as well as Aegon Asset Management  Market impact reflects the positive effect of higher bond and equity markets  Currency movements had a positive effect, mainly due to a stronger US dollar  Other includes customer behaviour assumption updates, the benefit from the post- retirement benefit plan changes Underlying earnings before tax (EUR million) 361 50 29 42 (10) 472 Underlying earnings Growth Market impact Currencies Other Underlying earnings before tax Q3 2011 before tax Q3 2012 4

Impact of assumption updates  Annual review of all assumptions relative to current experience and management expectations performed in third quarter Line of business Updated assumptions Earnings impact in USD million Life & Protection Mortality, morbidity, longevity 5 Variable annuities Policyholder behaviour, longevity (55) Employer Solutions & Pensions Persistency 10 Asia Mortality 9  US long term reinvestment yield and equity market return assumptions unchanged 5

Reinvestment yield assumption unchanged  Long term US reinvestment yield assumption unchanged 10-year US Treasury assumption grading from current levels in 5 years to 4.75% in 2017 ► Credit spreads are assumed to grade from current levels in two years to 110 bps ►  Gradual impact on underlying earnings is manageable and mitigated by management actions Continued focus on cost efficiencies ► Redesign, repricing and withdrawal of products ► Strong focus on writing profitable business on a market consistent basis ► Assumed reinvestment yield (10-year US Treasury + credit spread) 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 old reinvestment yield new reinvestment yield 2.50 2011 2012 2013 2014 2015 2016 2017+ 6

Net income benefits from realized investment gains and low impairments  Fair value loss mainly driven by losses on equity hedge programs in the US and the UK and negative results on the Dutch guarantee portfolio  Gains on investment are the result of normal trading in the portfolio  Impairments remain at low level and are mostly related to US RMBS  Run-off businesses up on higher results from institutional spread-based business and BOLI/COLI Underlying earnings to net income development in Q3 2012 (EUR million) 472 (126) 128 (35) 3 12 (80) 374 Underlying Fair value Realized gains Impairment Other charges Run-off Income tax Net income earnings before items on investments charges businesses Q3 2012 tax Q3 2012 7

Operating expenses reduced by 7% while investing in new propositions  Cost savings in established markets reflect cost reductions in the Americas and successful restructuring programs in the UK and the Netherlands  Enacted cost savings in Dutch business of EUR 80 million (Q2 EUR 62 million) Well on track to meet target of EUR 100 million reduction compared to 2010 cost level  Operating expenses include continued investments in new propositions such as new online platforms in the Netherlands and the UK Operating expenses (EUR million) 2,570 134 25 (140) (163) (33) 2,393 9M 2011 Currency effects Employee benefit Cost savings Lower Other* 9M 2012 plans established restructuring markets charges * Other expenses include the effect of the divestments of Transamerica Reinsurance and Guardian 8

Solid total sales of EUR 1.6 billion Sales*  New life sales stable at EUR 405 million (EUR million) Higher US sales were offset by lower sales in the Netherlands and in ► Spain due to the exclusion of CAM and lower production at other Spanish partners 1,620 1,604 1,550  Accident & health insurance up 24% to EUR 190 million Travel insurance sales up on addition of new partner in the third ► Q3 11 Q2 12 Q3 12 quarter of last year Gross deposits  (EUR billion) Gross deposits 10% lower at EUR 9.4 billion 10.5 9.8 Aegon Asset Management deposits rose 12% due to strong 9.4 ► institutional sales in the US and NL, strong retail sales in the UK ES&P deposits were solid at USD 5.6 billion, prior year deposits ► benefited from strong stable value deposits Gross deposits in the Netherlands lower following an interest rate ► Q3 11 Q2 12 Q3 12 reduction on savings products to protect margins   Life Pensions   Individual savings Asset management * Total sales consists of new life sales, new premiums accident & health, & retirement 9 general insurance and 1/10 of gross deposits

Higher US life and A&H sales: leveraging diversified distribution model  Life sales increase 9% compared with Q3 2011 Life and accident & health sales Strong indexed universal life sales as distribution expanded into the ► (USD million) brokerage channel 387 377 Discontinued sales of UL secondary guarantee joint survivorship ► 343 product following strict pricing discipline 225 219 198  Accident & health sales up 11% 162 158 145 Addition of new distribution partner for travel insurance in Q3 2011 ► Q3 11 Q2 12 Q3 12 Sequentially sales were down due to seasonality   ► Life Accident & health  L&P earnings lower due to positive one-time items in Q3 2011 L&P underlying earnings Earnings include net USD 5 million of assumption updates and ► (USD million) positive effect of changes to post-retirement benefit plans in Q3 2012 (USD 18 million) 215 177 176 Q3 11 Q2 12 Q3 12 10

US deposit business – strong sales and higher margins  Improved margins supported by continued strong net deposits and favorable markets   Pension margin up in Q3 following a decline in Variable annuities margin* up in Q3 expense rates Higher fees as products are repriced ► Higher balances Higher balances ► ► Operational enhancement, leveraging technology ► Lower claims ► and intelligent expense management Pensions balances and margin Variable annuity balances and margin* (%, USD billions) (%, USD billions) 0.3% 1.0% 0.8% 0.2% 0.6% 0.4% 0.1% 0.2% 59 77 83 96 38 40 43 47 0.0% 0.0% 2009 2010 2011 9M 12 2009 2010 2011 9M 12   Margin (UEBT** / Assets) Margin (UEBT** / Assets)   Targeted margin Targeted margin * Variable annuities margin adjusted for one-offs 11 ** 9M 2012 earnings annualized

Aegon Asset Management – increased third party deposits  Higher AuM driven by markets, increased insourcing of Assets under management Aegon assets and strong third party inflows (EUR billion) Offset by general account outflows driven by de- ► 248 217 244 emphasized and run-off businesses 53 50 31  Increased traction in third party asset management 194 195 186 Net third party wins of EUR 3 billion year-to-date ► Q3 11 Q2 12 Q3 12 Continue to attract solid retail flows in the UK ►  General & separate account  Third party Strong NL and US inflows as a result of new mandates ► AAM underlying earnings  Majority of flagship funds have solid investment (EUR million) performance across all business units  Sale of minority stake in Prisma closed in October 25 23 Proceeds of EUR ~100 million in Q4 2012 15 ► Earnings of EUR 8 million year to date ► Q3 11 Q2 12 Q3 12 12

Market consistent value of new business – focus on pricing discipline  Increase in MCVNB mainly driven by NL and US Life & MCVNB Protection, Individual Savings & Retirement (EUR million)  Recent management actions to improve profitability Discontinued sales of UL secondary guarantee joint survivorship ► 173 117 products in the Americas and Asia 93 US variable annuities: repricing and new volatility managed funds ► Q3 11 Q2 12 Q3 12 Repriced US long term care ► Repriced UL and withdrawal of variable annuity product in Canada ► Repriced and withdrawal of certain general insurance products in the Netherlands ►  Continued focus on writing profitable business 13