AEGON Delivers Strong Earnings Growth And Increased Value Of New Business

In the Netherlands, Aegon is on track with reorganizing its business to be more agile and better positioned to respond to changing conditions and opportunities in the Dutch market. The reorganization program, and other initiatives, will result in reducing the cost base for Aegon the Netherlands by EUR 100 million, compared to the cost base for 2010. The cost savings aim to offset pressure on underlying earnings from increased longevity provisioning and a declining life insurance back-book. Up to and including the third quarter, Aegon has implemented costs savings of EUR 80 million.

Aegon retained its place in the Dow Jones Sustainability World Index for 2012-2013, and regained its position in the European index after a one-year absence. This was due to a significant improvement in the company's overall sustainability rating. Aegon has made substantial progress in several key areas. In particular, the company has improved its approach to human resources, brand and customer relationship management. The introduction of a company-wide framework governing pay and remuneration, as well as the further progress of Aegon's talent management program also strengthened overall performance. In addition to the DJSI, Aegon is included in the FTSE4Good Index, and was recently admitted to Vigeo's Advanced Sustainability Performance Index for euro zone companies.

    Financial overview c)
 
    EUR millions           Notes Q3 2012 Q2 2012    % Q3 2011    % YTD 2012 YTD 2011    %
 
    Underlying earnings before tax
    Americas                         344     339    1     307   12      975      957    2
    The Netherlands                   82      71   15      68   21      232      223    4
    United Kingdom                    26      25    4       9  189       80       31  158
    New markets                       70      64    9      46   52      222      184   21
    Holding and other               (50)    (56)   11    (69)   28    (169)    (219)   23
    Underlying earnings before tax   472     443    7     361   31    1,340    1,176   14
 
    Fair value items               (126)     101    -   (288)   56      131    (396)    -
    Realized gains / (losses) 
    on investments                   128      85   51     102   25      258      397 (35)
    Impairment charges              (35)    (42)   17   (132)   73    (118)    (294)   60
    Other income / (charges)           3   (254)    -    (54)    -    (268)     (73)    -
    Run-off businesses                12       6  100     (5)    -       16       27 (41)
    Income before tax                454     339   34    (16)    -    1,359      837   62
    Income tax                      (80)    (85)    6      76    -    (210)     (46)    -
    Net income                       374     254   47      60    -    1,149      791   45
 
    Net income / (loss) 
    attributable to:
    Equity holders of Aegon N.V.     373     254   47      60    -    1,148      790   45
    Non-controlling interests          1       -    -       -    -        1        1    -
 
    Net underlying earnings          369     337    9     308   20    1,034      980    6
 
    Commissions and expenses       1,382   1,570 (12)   1,575 (12)    4,351    4,588  (5)
    of which 
    operating expenses        11     798     814  (2)     886 (10)    2,393    2,570  (7)
 
    New life sales
    Life single premiums           1,125   1,068    5   1,073    5    3,353    3,988 (16)
    Life recurring premiums 
    annualized                       293     321  (9)     298  (2)      943      938    1
    Total recurring 
    plus 1/10 single                 405     428  (5)     405    -    1,278    1,337  (4)
 
    New life sales
    Americas                  12     126     126    -     103   22      372      309   20
    The Netherlands                   25      23    9      32 (22)       80      137 (42)
    United Kingdom                   206     211  (2)     199    4      630      663  (5)
    New markets               12      48      68 (29)      71 (32)      196      228 (14)
    Total recurring 
    plus 1/10 single                 405     428  (5)     405    -    1,278    1,337  (4)
 
    New premium production 
    accident and 
    health insurance                 190     187    2     153   24      572      457   25
    New premium production 
    general insurance                 12      13  (8)      12    -       39       39    -
 
    Gross deposits (on and off balance)
    Americas                  12   6,391   6,644  (4)   7,376 (13)   20,427   18,019   13
    The Netherlands                  275     367 (25)     584 (53)    1,202    1,488 (19)
    United Kingdom                     5       9 (44)      11 (55)       22       47 (53)
    New markets               12   2,755   2,737    1   2,525    9    8,575    5,034   70
    Total gross deposits           9,426   9,757  (3)  10,496 (10)   30,226   24,588   23
 
    Net deposits (on and off balance)
    Americas                  12     904     738   22   2,840 (68)    2,703    3,033 (11)
    The Netherlands                (480)    (66)    -      54    -    (731)    (174)    -
    United Kingdom                   (6)     (1)    -       1    -      (8)       17    -
    New markets               12   1,208     619   95   1,502 (20)    3,191  (2,704)    -
    Total net deposits 
    excluding run-off businesses   1,626   1,290   26   4,397 (63)    5,155      172    -
    Run-off businesses             (301)   (479)   37 (1,121)   73  (1,940)  (2,528)   23
    Total net deposits             1,325     811   63   3,276 (60)    3,215  (2,356)    -
 
    Revenue-generating investments
 
                                                                 Sept.     June
                                                                   30,      30,
                                                                  2012     2012    %
    Revenue-generating investments (total)                     463,041  451,988    2
    Investments general account                                147,955  147,065    1
    Investments for account of policyholders                   156,831  151,633    3
    Off balance sheet investments third parties                158,255  153,290    3

OPERATIONAL HIGHLIGHTS

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