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AEGON Delivers Strong Underlying Earnings And Sales Growth; Capital Position Further Strengthened

THE HAGUE, the Netherlands, August 9, 2012 /PRNewswire/ --

Higher underlying earnings driven by growth, cost reductions and favorable currency movements

  • Underlying earnings increase 10% to EUR 443 million
  • Impairments of EUR 42 million remain at low level
  • Net income of EUR 254 million includes one-time charge of EUR 265 million before tax related to product improvements for unit-linked insurance policies in the Netherlands
  • Return on equity of 6.8%, or 7.7% excluding run-off businesses

Total sales increase as a result of continued strong pension and asset management deposits

  • Deposits up 45% to EUR 9.8 billion driven by sales of US pensions and new asset management mandates
  • Accident and health sales increase 29% to EUR 187 million, driven mainly by growth in the Americas
  • New life sales stable at EUR 428 million; strong US sales offset by lower sales in NL and UK
  • Market consistent value of new business of EUR 117 million, mainly the effect of low interest rates

Interim dividend supported by strong capital position and cash flows

  • IGD a) solvency ratio increases to 216%; IGD surplus capital of EUR 8.3 billion
  • Capital base ratio increases to 74.6%; on track to exceed minimum of 75% by the end of 2012
  • Operational free cash flow, excluding market impact and one-time items, amounts to EUR 296 million
  • Interim dividend of EUR 0.10 per common share

Statement of Alex Wynaendts, CEO

"Despite the challenges of historically low interest rates, continued market volatility and stagnant growth affecting the world's leading economies, AEGON's businesses delivered a strong set of results in the second quarter, as measured by both sales and earnings. Our capital position improved further and our businesses generated healthy cash flows which support our decision to pay an interim dividend of EUR 0.10 per common share.

"Net income was substantially impacted by the EUR 265 million charge related to improvements to unit-linked insurance products in the Netherlands, which we announced last May.

"We continue to see strong demand for our core products and services, particularly in the United States where increased pension sales and a number of new asset management contracts resulted in a significant increase in total deposits.

"Today's results make clear that we are making solid progress in executing on our strategic priorities and that our cost reduction programs and disciplined risk management are delivering their intended benefits. We are grateful for the continued confidence of our customers in helping them achieve financial security, particularly in these uncertain times. We remain committed to providing them reliable long-term financial solutions, while at the same time, achieving the sustainable earnings growth our strategy aims to deliver."

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