Aegon Ltd. · EURONEXT:AGN
Aegon — Investor Day (December 2009)
15 slides from Aegon's investor day presentation, Dec 2, 2009
Slide 1: Fulfilling our ambition
Fulfilling our ambition Alex Wynaendts CEO Analyst and Investor Day, New York City, December 2, 2009
Slide 2: AEGON's ambition
AEGON’s ambition “To be a global leader in helping customers secure their financial futures” o Rebalance capital allocation o Improve Improve g growth rowth and returns o Reduce financial markets risks o Manage AEGON as an international company …resulting in sustainable profitable growth Local knowl
Slide 3: First things first
First things first o First priority: full repayment of capital support o EUR 1 billion repaid on November 30 – first step towards full repayment Geographic mix Capital allocation* 5 -10% -10% 10% 10% 15 - 25% 5% 30% 30% 25-30% Global businesses (Life reinsurance, Asset 60% Management, European Varia
Slide 4: Key achievements
Key achievements Full repayment to the Dutch State o Repaid EUR 1 billion as first step towards full repayment Reallocate capital towards businesses with higher growth and return prospects o Freed-up EUR 4.2 billion since June 2008 – 60% capital efficiency and 40% de-risking o Excess capital of EUR
Slide 5: Americas – grow in Pensions and At-Retirement
Americas – grow in Pensions and At-Retirement Achievements Opportunities Execution o New distribution added o Largest and most sophisticated o Create common product portfolio o Offering high quality service life market, but still underserved across diverse distribution Retail life o Top-5 player o M
Slide 6: The Netherlands – improve position in SME pensions
The Netherlands – improve position in SME pensions Achievements Opportunities Execution o Stable market share o Retreating government o Multi distribution channels o Well positioned in broker channel and employers increases o New generation products Retail life need for savings for later o Develop o
Slide 7: UK – leverage strong pension position for At-Retirement market
UK – leverage strong pension position for At-Retirement market Achievements Opportunities Execution o High proportion of non-mortgage o Significant protection gap o Ongoing investment in brand individual protection sales o Attractive product for o Development of simple bank Retail life o Exited Grou
Slide 8: Central & Eastern Europe – profitable growth
Central & Eastern Europe – profitable growth Achievements Opportunities Execution o Top 3 in Poland and Hungary o Market ready for new type of life o Launching new products, o Introduced innovative products in products developed with US expertise Retail Czech Republic and Slovakia o Roll-out of hous
Slide 9: Additional opportunities for growth
Additional opportunities for growth Achievements Opportunities Execution o Rank #6 in China* o Serving largest Asian markets: o Leverage best practices o Accelerated growth in India China, India, Japan o Benefit from strength of local o Growth driven by improving partners Asia o Obtained license in
Slide 10: Development of underlying earnings before tax per quarter
Development of underlying earnings before tax per quarter Pre-crisis Current < 2008 Q3 2009 EUR 650 Million Earnings impacted by o Run-off institutional spread-based business : ~EUR 80 million EUR 417 o Equity markets: ~EUR 100 million million* o De-risking : ~EUR 40 million * Excluding exceptional
Slide 11: Underlying earnings run-rate sensitive to USD
Underlying earnings run-rate sensitive to USD Post-crisis run-rate > 2010 Quarterly EUR/USD UEBT (EUR million) rket impact 1.30 450 - 500 arket 1.45 425 - 475 Ma 1.60 400 - 450 o Equity markets medium term growth rate 8-9% p.a. Management actions Primary drivers of underlying earnings growth o Growt
Slide 12: Reduced financial markets risks
Reduced financial markets risks Americas o Risk transfer through reinsurance o Macro-hedge related to retail variable annuity portfolio o Run-off of Institutional spread-based business o Product redesign (Variable Annuities) The Netherlands o Sale Sale o off equ equity ity positions positions comple
Slide 13: Manage AEGON as an international company
Manage AEGON as an international company o Global asset management operational o Variable Annuities: – Use product competencies from US and UK to growth markets – Hedging centralized in the US – European platform in Dublin – Launched VA in UK UK,, NL NL,, France France,, Ja Japan pan o European data
Slide 14: Conclusions
Conclusions o Delivering on strategic priorities o First step toward full repayment o Focus on financial life-cycle of customers o Improved risk profile o Well-positioned in each of our markets Local knowledge. Global power. 14
Slide 15: Q&A
Q&A Local knowledge. Global power. 15