An introduction to Aegon - Helping people achieve a lifetime of financial security - August 2020
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An introduction to
Aegon
Helping people achieve a lifetime of financial security
Content
3 An overview of who we 18 An integrated, diversified 24 International
are financial services group
Key facts and figures Our international presence
5 Our strategy 21 Americas 25 Asset Management
Helping people achieve a lifetime of
financial security
10 A partner to the world 22 The Netherlands 26 Aegon’s Management
Creating long-term value for multiple Board
stakeholders
23 United Kingdom
2
An overview of who we are
Earnings What we do
(Underlying earnings before tax, full year 2019) Life insurance, pensions & asset management for approximately
29.9 million customers
(2019)
6% History
7% Our roots date back more than 175 years
6%
Paid out
€59.4 billion in claims, benefits and plan withdrawals
EUR 1.97 (Full year 2019)
51%
billion
Employees
30% Over 23,500 employees
(June 30, 2020)
Investments
Revenue-generating investments of EUR 883 billion
(June 30, 2020)
Americas
Netherlands
United Kingdom
International
Aegon Asset Management 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 business environment
Trends that are shaping our industry
Demographic & socioeconomic Macro-financial Technological & regulatory
• Worldwide aging population with • Continued low interest rates, • Technological developments
a need to fund longer lifespans shaping our industry and - To offer improved solutions and
business strategies going forward better, more efficient service to
• A “New Social Contract" could
our customers
address this challenge, requiring: • Customers impacted by economic
- A number of coherent measures uncertainty • Regulatory focus on financial
- Solidarity between generations stability of the industry and
• Political uncertainty financial system as a whole
- Sustainable retirement solutions,
highly adaptable to rapid pace of • Impact of COVID-19 pandemic • Role of financial sector in
change
supporting real economy
- Tapping into innovation and
technology • Increased expectations with
- Promotion of healthy lifestyles, respect to data protection, data
financial literacy, lifelong learning privacy and use of data
and age-friendly communities
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
We begin with customers. We assess their needs Our products and services are then branded,
and develop product and services that meet those marketed and sold. We offer products and
needs. Next, we estimate and price the risk services via intermediaries, like brokers, banks or
involved for us as a financial services provider. financial advisors. We also sell directly to our
Solutions customers.
development Distribution
and pricing
Claims and
From premiums, deposits and investment Investments In exchange for product and services,
returns, we pay customer claims and benefits, benefits customers pay fees or premiums. On
cover our expenses, and make profits for our certain pension products, savings and
shareholders. Customers also make regular investments, customers make deposits. By
withdrawals from pensions and savings products. investing this money, we make returns for our
customers.
8
Providing insights on retirement
Conducting research – educating the public – informing a global dialogue
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
A partner to the world
Creating long-term value for multiple 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
- Business partners
- Investors
- Society
10How we create and share value
Our value chain* Value created in 2019
€59.4 billion paid out to customers in
claims, benefits and plan withdrawals
Solutions €899 million paid out to investors in
development Distribution dividend and interest payments
and pricing
•
•
Financial capital
Human & intellectual capital
€235 billion invested in responsible
• Social & relationship capital investment solutions
Claims and
benefits
Investments €17 million spent on training and career
development programs
€9 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 as of page 13 in Aegon’s 2019 Integrated Annual ReportHow we share value with our customers
29.9 Serving individual and
million group customers globally
(2019)
• By serving customers throughout their lives
€59.4 Paid out in policyholder • By providing optimal products and services
claims, benefits and plan • By being easily accessible online
billion
withdrawals in 2019
• By developing innovative new platforms
• By offering efficient, frictionless customer service
88% Of the business covered in
our relational NPS program
Source: Aegon’s 2019 Integrated Annual Report 12How we share value with our employees
Over 23,500 employees
(June 30, 2020)
• By providing worthwhile employment and a safe,
0.8
productive workplace
Total employment
€2.1 costs in 2019 • By attracting people with digital and marketing skills
billion
• By encouraging new ways of working
1.3 Salaries Benefits
• By embracing diversity
of Aegon’s workforce in 2019
49% are women
Source: Aegon’s 2019 Integrated Annual Report 13How we share value with our business partners
Omni- approach towards our
customers
channel
• Helping our business partners to grow alongside us
In commissions, fees
€6.4 and other payments to • Through our joint ventures and strategic partners
intermediaries,
billion suppliers and • Through our investments in start-ups
reinsurers
• By regularly assessing our suppliers against
minimum social and environmental standards
€1.5 Spent on goods and
services in 2019
billion
14How we share value with our investors
of Aegon’s shares are held
78% by institutional investors • By growing our business, generating capital and
paying out dividends to our shareholders
financial strength rating by • By our dedication to meet our long-term
A+ S&P Global1) commitments to shareholders by delivering
sustainable financial results and maintaining a
strong and stable balance sheet
listings – Euronext
2 Amsterdam & New York • Through shareholder engagement
stock exchange
1) A+ rating applies to Aegon USA, Aegon the Netherlands and Aegon UK. For more information, please visit our corporate website. 15Taking our responsibility as investor and asset manager
€ 147 billion General As an asset manager we engage proactively
account 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 wider society
19,500 of volunteer hours in
2019 by employees to
hours work with local • By playing an active role in the communities in which
communities we operate
of impact investments – Providing support through community investments to
€10.7 by the end of 2019 in vulnerable people
billion e.g. affordable housing • By encouraging our employees to add value via
and renewable energy
volunteer work
• By our sport sponsorships
€9 invested in 2019 in local
communities, mostly in
million – We are promoting a healthy lifestyle
health, welfare and literacy
Source: Aegon’s 2019 Integrated Annual Report 17An integrated, diversified
financial services group
18Operations across Americas, Europe and Asia
Americas
We operate primarily under the Transamerica brand in the United States, under MAG - a joint
venture - in Brazil and have a small operation in Canada.
Netherlands
Aegon has operated for more than 175 years in the Netherlands, where we are a provider of
life insurance, pensions, banking and other financial services.
United Kingdom
Aegon is a provider of life insurance, pensions, and asset management in the United Kingdom,
where our history stretches back to 1831.
Aegon International
Aegon International was created in January 2020 to consolidate the management of our
businesses in Southern and Eastern Europe and Asia.
Asset Management
Aegon Asset Management's specialist teams provide high-quality investment solutions across
various asset classes in the UK, Continental Europe, North America and Asia.
19
More information on the next slides and on our corporate website.We operate with two main brands We have white label JV agreements with La Banque Postale in France for asset management products and with Banco Santander in Spain for life insurance products. 20
The Americas at a glance
Earnings What we do
(Underlying earnings before tax, full year 2019) A leading provider of life insurance, investments and retirement
solutions in the US
Geographical footprint
7% 1% Operations in the United States & Brazil
15%
9%
Customers
Diverse & targeted distribution to better align with its 12 million
customers in the US
USD 1.26 19% (December 31, 2019)
billion
Employees
33% Over 8,500 employees
(June 30, 2020)
13%
3%
Investments
Revenue-generating investments of USD 453 billion
(June 30, 2020)
Life Accident & Health Retirement Plans Mutual Funds
Variable Annuities Fixed Annuities Stable Value Solutions Latin America
21Aegon the Netherlands at a glance
Earnings What we do
(Underlying earnings before tax, full year 2019) In the Netherlands, Aegon is one of the best-known names in the
Dutch financial sector, and a leading provider of life insurance,
pensions. Our operations in the Netherlands also include banking,
general insurance and mortgages.
3%
16%
Locations
The Hague, Leeuwarden, Groningen and Groningen
5% Customers
EUR 648 In the Netherlands, we use a variety of distribution channels to help
customers assess the products and services appropriate for their
million needs. In general, all business lines use the intermediary channel.
In recent years, we have invested heavily in its direct online channel.
76% Employees
Over 3,500 employees
(June 30, 2020)
Investments
Life Non-life Banking Service business Revenue-generating investments of EUR 96 billion
(June 30, 2020)
22Aegon UK at a glance
Earnings What we do
(Underlying earnings before tax, full year 2019) Aegon in the United Kingdom is the market leading investment
platform in the country, providing a broad range of investment,
retirement solutions and protection products to individuals, advisers
and employers.
Locations
Edinburgh, London, Peterborough and Witham
30%
Customers
GBP 122 Aegon UK accesses customers through wealth advisers and the
million workplace and has a market-leading position in each with 3.9 million
customers.
70% Employees
Over 2,200 employees
(June 30, 2020)
Investments
Revenue-generating investments of GBP 180 billion
Existing business Digital solutions (June 30, 2020)
23Aegon International at a glance
Earnings
(Underlying earnings before tax, full year 2019, What we do
in EUR millions) Aegon International brings together our businesses in Asia, and
Southern and Eastern Europe. Its main business lines are life
insurance, savings, pensions, asset management, general insurance
and accident & health.
-18
Geographical footprint
42 Aegon’s operations in Asia which are run via two major joint ventures
14
in China and India, and several wholly-owned subsidiaries, including
TLB. In Southern and Eastern Europe, Aegon has operations
in Hungary, Poland, Portugal, Romania, Spain and Turkey.
EUR 144
million Customers
We serve our customers in these regions via multiple channels:
agents, banks, brokers, direct marketing other intermediaries and
64 43 online
Employees
3,600 employees
(June 30, 2020; excluding agents)
Spain & Portugal Hungary TLB China Others
Investments
Revenue-generating investments of EUR 15.7 billion
(June 30, 2020) 24Aegon Asset Management at a glance
Earnings What we do
(Underlying earnings before tax, full year 2019) Aegon Asset Management is a provider of investment management
expertise to institutional and private investors around the world.
Geographical footprint
6% Aegon Asset Management has offices in the United States, the
Netherlands, the United Kingdom, Hong Kong, Japan, Germany,
Hungary and Spain.
Distribution
44% The variety of sales and distribution channels we have in the
EUR 139 Americas, Europe and Asia include: affiliated companies, direct to
million institutional clients, independent investment advisors, investment
50% consultants, joint ventures and third-party investment platforms.
Employees
Over 1,500 employees
(June 30, 2020)
Assets under management
Global Platforms Strategic Partnerships Other
Total assets under management of EUR 364 billion
(June 30, 2020)
25Aegon’s Management Board
Lard Matt Allegra Mark Marco
Friese 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
26Helping people achieve a lifetime of financial security
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