Aegon Ltd. · EURONEXT:AGN
Aegon — Q3 2007 Earnings Presentation
20 slides from Aegon's earnings presentation, Nov 8, 2007
Slide 1: Third Quarter 2007 Results
Third Quarter 2007 Results Don Shepard, CEO Jos Streppel, CFO Analyst & Investor Conference Call November 8, 2007
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements Cautionary note regarding forward-looking statements The statements contained in this presentation that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. The following
Slide 3: Execution of Strategy
Execution of Strategy Pension & Retirement Czech Republic & Slovakia: start of voluntary pension funds Distribution USA: acquisition of Merrill Lynch Life companies strengthens VA position China: further expansion with license for Guangdong province Taiwan: MoU to establish life and pension JV with
Slide 4: Increased Earnings
Increased Earnings In EUR mln Net Operating Earnings In EUR mln Net Underlying Operating Earnings 600 600 531 497 509 483 500 500 400 + 2% 400 + 10% in EUR in EUR 300 300 200 200 + 7% + 15% 100 at constant 100 at constant currency currency 0 0 3Q 06 3Q07 3Q 06 3Q07 In EUR mln Net Income 600 541 500
Slide 5: Successful On All Measures
Successful On All Measures New Life Sales (APE) Total Deposits In EUR mln In EUR mln 1,000 14,000 847 12,056 800 756 12,000 + 12% 10,000 + 53% 600 7,896 in EUR 8,000 in EUR 400 6,000 + 14% 4,000 + 63% 200 at constant at constant 2,000 currency currency 0 0 3Q 06 3Q07 3Q 06 3Q07 In EUR mln Value of N
Slide 6: Growth of Revenue Generating Investments
Growth of Revenue Generating Investments CAGR 10% (in EUR mln) at constant currency 390,000 9% in EUR 370,000 350,000 330,000 310,000 290,000 270,000 250,000 YE04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 EUR Constant currency Conference call third quarter 2007 results – November 8, 200
Slide 7: Continued Growth in Value of New Business
Continued Growth in Value of New Business (in EUR mln, after tax) +51% 235 The Netherlands 250 Central and Eastern Europe 200 156 Other European Countries 150 Asia 100 United Kingdom Americas 50 0 3Q 2006 3Q 2007 24% of VNB is generated by Other countries IRR increased to 17.8% Conference call third
Slide 8: New Life Sales and Deposits Up Strongly
New Life Sales and Deposits Up Strongly New life sales 12% Deposits 53% US: retail life sales up 24%; pension deposits up 38% NL: pension sales up 76% UK: continued strong annuity, unit-linked bond and pension sales Hungary: strong new pension sales Poland: life sales doubled driven by distribution
Slide 9: Net Inflows in Americas Deposit Business
Net Inflows in Americas Deposit Business Product balances of deposit businesses increased 11% (in USD mln) 300,000 + 56.3 - 50.4 + 18.3 245.9 250,000 221.7 200,000 Net deposits 150,000 USD 6 billion 100,000 50,000 0 3Q06 Deposits Withdrawals Market 3Q07 performance & Other Institutional Products Pen
Slide 10: No Impairments of Subprime
No Impairments of Subprime Subprime portfolio – USD 4.3 billion Below AA AA <1% 15% No impairments AA+ in 3Q 2007 14% AAA 70% Subprime represents 2% of general account investments Less than 2% of subprime portfolio downgraded to date; none of those securities rated lower than A+ after downgrade Book
Slide 11: Capital Return to Shareholders in 2007
Capital Return to Shareholders in 2007 (in EUR mln) 68% of share repurchase program executed… …remainder to be finalized before year-end + dividend paid Total return to shareholders EUR 1.9 billion -100 150 400 650 900 1,150 1,400 1,650 1,900 EUR 1 billion share repurchase program on track • Average
Slide 12: Conclusions
Conclusions Strong operational performance Broad-based distribution strategy delivers strong deposits and sales growth Increase in VNB and IRR as result of focus on profitable growth Continued investments in strategic growth areas Conference call third quarter 2007 results – November 8, 2007 12
Slide 13: Opportunity To Meet Management
Opportunity To Meet Management Registration website for our Analyst & Investor Conference in New York City on November 26-27, 2007 is still open!! Conference call third quarter 2007 results – November 8, 2007 13
Slide 14: THANK YOU!
THANK YOU! For questions please contact AEGON Investor Relations P.O. Box 85 2501 CB The Hague The Netherlands P: +31 70 344 8305 F: +31 70 344 8445 E: [email protected] Conference call third quarter 2007 results – November 8, 2007 14
Slide 15: Appendix
EGON Appendix
Slide 16: Subprime Exposure
Subprime Exposure Subprime floating portfolio Subprime fixed portfolio USD 1.8 billion USD 2.5 billion AA Below AA Below AA AA+ <1% 3% <1% 2% AA AAA 32% 37% AA+ AAA 31% 95% As of September 30, 2007 Conference call third quarter 2007 results – November 8, 2007 16
Slide 17: Americas
Americas Sales overview Net operating earnings up 11% (in USD mln) 3Q 2007 3Q 2006 ∆ Net underlying operating earnings up 7% Retail life insurance 191 154 24% (in USD mln) 499 491 BOLI/COLI 40 114 (65%) 50 0 448 458 Reinsurance 89 64 39% 400 Total deposit overview 300 Pensions & AM 3,250 2,337 39% 2
Slide 18: The Netherlands
The Netherlands Net operating earnings Sales overview Net underlying operating earnings (in EUR mln) 3Q 2007 3Q 2006 ∆ (in EUR mln) 150 124 Life insurance (APE) 21 24 (13%) 12 5 101 94 10 0 Pensions (APE) 51 29 76% 75 67 50 Total deposits 728 637 14% 25 0 3Q06 3Q07 3Q06 3Q07 Decrease in net operatin
Slide 19: United Kingdom
United Kingdom Net operating earnings* Sales overview (in GBP mln) (in GBP mln) 3Q 2007 3Q 2006 ∆ +33% 40 40 Single premium 1,838 1,578 16% 35 30 30 Recurring premium 118 111 6% 25 20 APE (recurring+1/10 single) 302 269 12% 15 10 Total deposits 183 119 54% 5 0 3Q 2006 3Q 2007 Strong increase in net
Slide 20: Other Countries
Other Countries Net operating earnings* Sales overview (in EUR mln) (in EUR mln) 3Q 2007 3Q 2006 ∆ 39 40 +255% Single premium 293 112 162% 30 Recurring premium 69 38 82% 20 11 APE (recurring+1/10 single) 99 49 102% 10 Total deposits 204 125 63% 0 3Q 2006 3Q 2007 Increase in net operating earnings re