Aegon Ltd. · EURONEXT:AGN
Aegon — Q2 2007 Earnings Presentation
17 slides from Aegon's earnings presentation, Aug 9, 2007
Slide 1: Second Quarter 2007 Results
Second Quarter 2007 Results Don Shepard, CEO Jos Streppel, CFO Media Conference Call August 9, 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: Strategic Developments In Key Growth Areas
Strategic Developments In Key Growth Areas Pension & Retirement China: entering asset management market through 49% stake in IFMC Netherlands: strengthened pension position with OPTAS Poland: 2nd pension fund acquired and merged into existing fund Distribution UK: partnerships formed with Barclays a
Slide 4: Enhanced Shareholder Return
Enhanced Shareholder Return Share Buy Back Integral part EUR 1 billion of common stock of capital EUR 0.5 billion executed immediately management strategy Business growth not affected Dividend Attractive Interim dividend up 25% dividend yield Aim to grow dividend depending on of 4.5% cash flow and c
Slide 5: Strong Operational Performance in Q2
Strong Operational Performance in Q2 Net operating earnings 22% Net underlying operating earnings 9% Value of new business 28% New life sales 9% Deposits 18% Media Conference Call second quarter 2007 results – August 9, 2007 5
Slide 6: Increasing Net Operating Earnings
Increasing Net Operating Earnings In EUR mln 750 650 550 +22% 450 350 250 150 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 Increase mainly driven by favorable investment performance, positive impact of financial markets and growth of underlying businesses Media Conference Call second quarter 20
Slide 7: New Life Sales and Deposits Up Strongly
New Life Sales and Deposits Up Strongly New life sales 9% Deposits 18% UK: record quarter of new life sales US: VA sales up 12%; pension deposits up 16% NL: pension sales up 26% Poland: strong sales continued Taiwan: sales gains led by unit-linked Spain: inclusion of 2 new JV’s drive sal
Slide 8: Continued Growth in Value of New Business
Continued Growth in Value of New Business (in EUR mln, after tax) 250 235 +28% The Netherlands 200 184 Central and Eastern Europe Other European Countries 150 Asia 100 United Kingdom Americas 50 0 2Q 2006 2Q 2007 All country units contributing to growth 27% of VNB is generated by developing markets
Slide 9: Subprime and Alt-A Exposure
Subprime and Alt-A Exposure Subprime portfolio – USD 4.5 billion Below AA AA <1% 16% No material impairments AA+ expected 13% AAA 71% High quality subprime portfolio No origination of subprime mortgages Expectations of future cash flows unchanged No rating downgrades Insignificant exposure
Slide 10: Conclusions
Conclusions Businesses performed well Increase in VNB and IRR Broad-based sales growth Continued investments in strategic growth areas Enhanced shareholder return Media Conference Call second quarter 2007 results – August 9, 2007 10
Slide 11: Thank You
THANK YOU! For questions please contact AEGON Corporate Communications P.O. Box 85 2501 CB The Hague The Netherlands P: +31 70 344 8344 F: +31 70 344 8445 E: [email protected] Media Conference Call second quarter 2007 results – August 9, 2007 11
Slide 12: Appendix
Appendix CEGON
Slide 13: Net Underlying Operating Earnings
Net Underlying Operating Earnings In EUR mln 650 550 +9% 450 350 250 150 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 Net underlying operating earnings include long-term expected returns on fair value items and reflect underlying business performance Media Conference Call second quarter 2007 re
Slide 14: Americas
Americas Sales overview Net operating earnings (in USD mln) 2Q 2007 2Q 2006 ∆ (in USD mln) Retail life insurance 175 178 (2%) +9% BOLI/COLI 17 14 21% 600 541 496 Reinsurance 89 90 (1%) 500 Total deposit overview 400 Pensions & AM 3,165 2,730 16% 300 IGP 6,526 4,504 45% 2Q 2006 2Q 2007 Variable annui
Slide 15: The Netherlands
The Netherlands Net operating earnings* Sales overview (in EUR mln) (in EUR mln) 2Q 2007 2Q 2006 ∆ 100 +19% 80 6% 80 67 Life insurance (APE) 53 50 60 (67%) Accident & health 4 12 40 20 General insurance 7 8 (13%) 0 2Q 2006 2Q 2007 Increase in net operating earnings reflects a normal tax in 2Q07 co
Slide 16: United Kingdom
United Kingdom Net operating earnings Sales overview (in GBP mln) (in GBP mln) 2Q 2007 2Q 2006 ∆ +89% 68 70 60 Single premium 1,764 1,350 31% 50 36 (10%) 40 Recurring premium 132 147 30 APE (recurring+1/10 single) 308 282 9% 20 10 (15%) Pensions & AM 192 226 0 2Q 2006 2Q 2007 Strong increase in ne
Slide 17: Other Countries
Other Countries Net operating earnings Sales overview (in EUR mln) (in EUR mln) 2Q 2007 2Q 2006 ∆ 20 +275% 15 Single premium 249 124 101% 15 10 Recurring premium 59 40 48% 5 4 APE (recurring+1/10 single) 84 52 62% 0 2Q 2006 2Q 2007 Total deposits 182 109 67% Increase in net operating earnings refl