An introduction to Aegon - February 2020 Helping people achieve a lifetime of financial security
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An introduction to
Aegon
February 2020
Helping people achieve a lifetime of financial security
Content
3 An overview of who we 18 International presence 27 Asia
are Businesses in more than 20 countries
Key facts and figures
5 Our strategy 21 Americas 29 Aegon Asset
Helping people achieve a lifetime of Management
financial security
8 Creating value 23 Europe 31 Aegon’s Management
Creating a positive impact Board
2
An overview of who we are
Earnings What we do
(Underlying earnings before tax, full year 2019) Life insurance, pensions & asset management for almost
29 million customers
3% (2018)
6%
History
Our roots date back 175 years
Paid out
€54 billion in claims, benefits and plan withdrawals
EUR 1.97 51%
(Full year 2018)
billion Employees
40%
Almost 24,000 employees
(December 31, 2019)
Investments
Revenue-generating investments of €898 billion
(December 31, 2019)
Deposits
Gross deposits of €145 billion
Americas (Full year 2019)
Europe
Aegon Asset Management
Asia
3
Customers at the heart of everything we do
For 175 years
1983 Recent history
Aegon’s roots date Merger of Dutch insurers International expansion to Executing our customer-
back to the first half of Ago and Ennia; Aegon over 20 markets in the centric strategy to help
the 19th century established Americas, Europe and Asia people achieve a lifetime
of financial security
4
To help people achieve a lifetime of financial security
From working life….through guidance and advice…to trusted provider of retail solutions
Working life Saving & investment At & after retirement
We protect customers’ lives, As their working lives progress, we We provide our customers with a
property and other assets, and manage customers’ assets and stable income in retirement,
help them manage their education provide advice on savings and helping to meet costs of care and
and pension pots. investments. securing their families’ future.
5
Our operating environment
Key trends are shaping our industry
Shift away from • Low interest rates combined with changing demographics
guaranteed • New prudential regulation and increased capital requirements
life products • Rising demand for transparent products
Focus on • Reduced social benefits and fiscal incentives
individual • Increased awareness to save for retirement
responsibility • Workplace channel increasingly important
Increased • Changing customer behavior in researching and purchasing products
importance of • New technology creates increased transparency
digital channels • More effective and efficient ways to advise and serve mass affluent customers
6
Our purpose and vision
To continue for the next 175 years and beyond
Purpose
Helping people achieve a lifetime of
financial security
Vision
Financially secure and healthy lives
Secure retirement and healthy aging in society
Cleaner and healthier environment
7
Aegon’s business model
Putting the customer at the heart of everything we do
Product development and pricing
We begin with customers. We assess their needs, and develop product and services that
meet those needs. Next we estimate and price the risk involved for us as a financial services
provider.
Distribution
Our products and services are then branded, marketed and sold. We offer products and
Our purpose is services via intermediaries, like brokers, banks or financial advisors. We also sell directly to
to help our our customers.
customers
achieve a
lifetime of
Investments
In exchange for product and services, customers pay fees or premiums. On certain pension
financial security products, savings and investments, customers make deposits. By investing this money, we
make returns for our customers.
Claims and benefits
From premiums, deposits and investment returns, we pay customer claims and benefits, cover
our expenses, and make profits for our shareholders. Customers also make regular
withdrawals from pensions and savings products.
8
Committed to financial education
Conduct research, educate the public and lead a global dialogue on retirement security
Established research centers for longevity Building relationships with respected
and retirement in the Netherlands, the US partners in the field of longevity, retirement
and Brazil and health
The Centers for longevity and retirement
Publication of original research regarding:
are a collaboration of experts from Aegon’s
retirement, longevity, population aging,
businesses in Europe, the Americas and
healthcare coverage and health & wellness
Asia
9
Creating value
For all our stakeholders
• Every company must create long-term value for society
and its stakeholders
• Aegon creates value in several ways: as a provider of
financial services, a responsible employer and business
partner, through its returns to shareholders, its tax
payments, its support for local communities and through
the money invested
• Our stakeholders are:
- Customers
- Employees
- Investors
- Wider community
- Business partners
10How we create and share value
Our value chain* Value created
€54 billion paid out to customers in
claims, benefits and plan withdrawals
Our purpose is
• Financial capital to help our €861 million paid out to investors
• Human & intellectual capital customers in dividend and interest payments
• Social & relationship capital achieve a
lifetime of
financial security
€12.5 million spent on training and
career development programs
€10.1 million invested in
local communities
*This chart is based on the International Integrated Reporting Council’s IR framework. For the purpose of Aegon’s value chain, the capitals have been chosen that are most relevant to 11
Aegon’s business. More information can be found in Aegon’s 2018 Integrated Annual Report.How we share value with our customers
Almost • By serving customers throughout their lives
Serving individual and
29 group customers globally • By providing optimal products and services
million
• By being easily accessible online
€54 Paid out in policyholder • By developing innovative new platforms
claims, benefits and plan
billion • By offering efficient, frictionless customer
withdrawals in 2018
service
Of our businesses rank in
the top 50% for customer
41% loyalty in their respective
markets versus 12% in 2015
12How we share value with our employees
• By providing worthwhile employment and a
Almost 24,000at December 31, 2019
safe, productive workplace
employees
• By attracting people with digital and marketing
0.9
skills
Total employment • By encouraging new ways of working
€2.1 costs in 2018
billion
• By embracing diversity
1.2 Salaries Benefits
Of women in the Aegon
49% workforce in 2018
(Excluding Aegon’s operations in China)
13How we share value with our investors
• By growing our business, generating capital
78% of Aegon’s shares are held
by institutional investors
and paying out dividends to our shareholders
• By our dedication to meet our long-term
commitments to shareholders by delivering
financial strength rating by sustainable financial results and maintaining a
AA- S&P Global1)
strong and stable balance sheet
• Through shareholder engagement
listings – Euronext
2 Amsterdam & New York
stock exchange
1) AA- rating applies to Aegon USA and Aegon the Netherlands. 14How we share value with wider society
Just > of volunteered hours • By playing an active role in the communities in
in 2018 by employees
14,000 to work with local
which we operate
hours communities – Providing support through community investments
to vulnerable people
of impact investments • By encouraging our employees to add value
€8.4 by the end of 2018 in
via volunteer work
billion e.g. affordable housing
and renewable energy • By our sport sponsorships
– We are promoting a healthy lifestyle
€9.3 invested in 2018 in local
communities, mostly in
million health, welfare and literacy
15Taking our responsibility as investor and asset manager
€ 147 billion General As an asset manager we engage
account proactively with issuers
Number of companies engaged with
564
Exclusions1
Companies that expand coal-related operations 360
Coal 335
or exceed revenue threshold2
Tobacco companies Companies that exceed revenue threshold3
Companies that exceed production threshold4
Oil or tar sands
or operate pipelines
Controversial weapons All companies
2017 2018 2019
1. For more details refer to the Aegon N.V. Responsible Investment Policy
2. Threshold is currently 30% of revenues from exploration, mining, and refining of thermal coal; threshold will be decline over time to 5% in 2029 16
3. Threshold is currently 5% of revenues from tobacco production
4. Threshold is currently 30% of total oil equivalent production from oil sandsHow we share value with our business partners
• Helping our business partners to grow
Omni- approach towards our alongside us
customers
channel
• Through our joint ventures and strategic
Invested in start-ups partners
~$140 and new technologies,
with 18 separate
• Through our investments in start-ups
million investments by the • By regularly assessing our suppliers against
end of 2018
minimum social and environmental standards
€1.5 Spent on goods and
services in 2018
billion
17One of the world’s
leading financial
services companies
18Operations across Americas, Europe and Asia
In more than 20 countries
Americas Europe Asia
Main brands
Joint ventures
This map does not provide an exhaustive list of Aegon’s operations and subsidiaries. For more information, please see our 2018 Annual Report 19Two master brands
20The Americas at a glance
A few key indicators
Underlying earnings before tax Revenue-generating investments
By line of business – full year 2019 December 31, 2019
85 15
186
110 Life
Accident & health
Retirement plans
$1.3 241
Mutual funds
billion Variable annuities
Fixed annuities
423
Stable Value Solutions
Latin America
160
37 $452 billion
21The Americas at a glance
Transamerica is Aegon’s master brand in the US
Operations in the Over 8,500 employees
Primary sponsor of United States & Brazil (December 31, 2019)
US professional golfer:
In the US, among the Diverse & targeted
top 10 largest distribution to better
Zach providers of variable align with its 12 million
Johnson annuities, universal customers in the US
life and term life (December 31, 2019)
22Europe at a glance
A few key indicators
Underlying earnings before tax Revenue-generating investments
By line of business – full year 2019 December 31, 2019
88
The Netherlands
139
€875 United Kingdom
million
Southern and Eastern
Europe
648
€317 billion
23Europe at a glance
One of the leading brands in the Dutch financial sector
Headquarter in Almost 3,600 employees
The Hague, offices in (December 31, 2019)
Primary sponsor of Leeuwarden, Groningen
and Amsterdam
In the Netherlands, Using a variety of
Aegon is the #2 distribution channels
Dutch provider of group to help customers
Rowing pensions and the #5 access products and
Association in individual life services as best suits
their needs
24Europe at a glance
Aegon UK enables customers to create the tomorrow they want
Aegon UK’s main Over 2,250 employees
Various partnerships with organizations offices are in (December 31, 2019)
Edinburgh and
that make a social impact, such as:
London
In the UK, Aegon Leading position for award-
focuses on winning retirement platform
Breakfast retirement, workplace with GBP 146 billion in assets
Club & savings and under administration
Prince’s protection (December 31, 2019)
Trust
25Europe at a glance
Southern & Eastern Europe
Present in Hungary, Almost 2,860 employees
Growth potential and Poland, Romania & (December 31, 2019)
Turkey
strong partnerships
In Spain & Portugal, Successful Aegon
distribution through Direct portal for
Southern & strong partnerships non-life in Hungary
Eastern with banks: Santander
Europe & Liberbank
Online distribution is
increasingly important
in order to connect
with customers in
Spain & Portugal
26Asia at a glance
A few key indicators
Underlying earnings before tax Revenue-generating investments
By line of business – full year 2019 December 31, 2019
-15
High net worth
businesses
12
€69 Aegon Insights
million
Strategic partnerships
72
$8.7 billion
27Asia at a glance
A key long-term growth market for Aegon
Active with TLB, 1,600 employees
Aegon’s regional office in Hong Kong Aegon Insights, and (December 31. 2019; excluding agents)
joint ventures in
oversees and supports
China and India
Leading position in Aegon’s digital business
India with online GoBear, Asia's only
operations insurance impartial metasearch
throughout engine for financial
the region products, is one of
Asia's fastest-growing
fintech startups with
over 15 million users
28Aegon Asset Management at a glance
A few key indicators
Underlying earnings before tax Assets under management
By line of business – full year 2019 December 31, 2019
Americas
56
69 Europe
€139
million Rest of World
Strategic partnerships
16
-2 €352 billion
29Aegon Asset Management at a glance
A global investment manager for institutional, wholesale & retail clients
Businesses and Over 1,500 employees
Aegon Asset Management’s partnerships in the (December 31, 2019)
Americas, the
specialist teams provide
Netherlands, UK,
France, Central &
Eastern Europe and Asia
High-quality A robust investment Global platform of
performance track solutions & strategies,
investment record underlined by including fixed income,
solutions numerous industry equities, real estate and
across awards, including multi asset solutions
various Morningstar
asset awards
classes
30Aegon’s Management Board
Alex Matt Allegra Mark Marco
Wynaendts Rider van Hövell Mullin Keim
- Patrizi
CEO CFO CEO CEO
CRO Americas International
Mike Maarten Bas Onno Carla
Holliday- Edixhoven NieuweWeme van Klinken Mahieu
Williams*)
CEO CEO General Global
CEO Aegon NL AAM Counsel Head HR
Aegon UK
Mark
Bloom
CTO
* Pending regulatory approval 31Helping people achieve a lifetime of financial security
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