AEGON Improves Underlying Earnings and Capital Position in Q2 2009

THE HAGUE, The Netherlands, Aug. 13  /PRNewswire-FirstCall/ -- 

  Capital Position Strengthened
  - EUR 1.6 billion in capital freed up in first half 2009, above full year
    target
  - Excess capital(a) of EUR 3.5 billion by end June
  - Revaluation reserves improve by EUR 3.4 billion, or 40%, a result of
    narrowing credit spreads
  - IGD(b) solvency ratio increases to 202%
  - No interim dividend payment for 2009 - dividend policy remains
    unchanged


  Improved earnings
  - Underlying earnings before tax of EUR 404 million, substantial
    improvement compared with the past two quarters
  - Underlying earnings include lower investment income as result of
    de-risking measures
  - Fair value items of EUR (31) million include EUR 202 million net gain
    from higher equity markets, offset by a loss on interest rate hedges
  - Net loss of EUR 161 million, including one-time EUR 385 million loss
    from sale of Taiwanese life activities
  - Impairments of EUR 393 million, approximately half from US housing
    market related assets
  - Cost savings well on track to achieve EUR 150 million target


  Continued profitable sales, despite difficult environment
  - New life sales of EUR 469 million, helped by an increase in US retail
    sales
  - Net deposits(c) of EUR 857 million, due to strong sales of annuities and
    pensions, and improved persistency
  - Value of new business of EUR 181 million, with overall increase in
    rates of return


  Statement Alex Wynaendts, CEO



"Ensuring that AEGON maintains a strong capital position continues to be front and center in our actions. In the first half of the year, we have exceeded our full-year capital release target. We are also pleased with the further improvement, quarter over quarter, to our underlying earnings, despite the impact of our de-risking measures on investment income. Our strong capital position has allowed us to begin reversing in part the impact of these measures by investing cash in higher yielding, quality assets. We have not declared an interim dividend, however our dividend policy remains unchanged. Our decision to pay a full-year dividend will continue to depend on cash flows and AEGON's capital position at the end of the year.

"We are well on track to achieve our cost savings target for 2009. At the same time, we are working to identify additional cost saving measures with the determination not to undermine the high level of service our customers have come to expect. We are especially pleased by the continued confidence of our customers, as demonstrated by solid retail sales in the United States and net deposits for the quarter.

"We remain convinced that our strategic objectives to strengthen AEGON's capital position, reduce costs and implement actions to safeguard customer trust are the right ones in the current environment and for the long term. AEGON has weathered the turmoil of the past year and is committed to being in a strong position to maximize the opportunities ahead."

  KEY PERFORMANCE INDICATORS
                                  Notes     Q2       Q1       %      Q2
  amounts in EUR millions                  2009     2009            2008

  Underlying earnings before tax     1     404      (22)    N.M.    596
  Net income                         2    (161)    (173)      7     276
  New life sales                     3     469      543     (14)    729
  Gross deposits excluding
  Institutional Guaranteed
  Products                           4   5,647    6,393     (12)  5,650
  Value of new business (VNB)              181      201     (10)    212
  Return on equity                   5    10.3%    (3.3%)   N.M.   11.2%

  - TABLE CONTINUED -

                                  %       Ytd       Ytd       %
  amounts in EUR millions                2009      2008

  Underlying earnings
  before tax                    (32)       382     1,254    (70)
  Net income                    N.M.      (334)      429    N.M.
  New life sales                (36)     1,012     1,415    (28)
  Gross deposits excluding
  Institutional Guaranteed
  Products                        -     12,040    11,037     9
  Value of new business (VNB)   (15)       382       398    (4)
  Return on equity               (8)       3.5%     12.2%  (71)


  a) Excess capital over S&P AA capital adequacy requirements

  b) The calculation of the IGD (Insurance Group Directive) capital surplus
     and ratio are based on Solvency I capital requirements on IFRS for
     entities within the EU (Pillar I for AEGON UK), and local regulatory
     solvency measurements for non-EU entities. Specifically, required
     capital for the life insurance companies in the US is calculated as two
     times the upper end of the Company Action Level range (200%) as applied
     by the National Association of Insurance Commissioners in the US. The
     methodology to calculate the ratio for the Netherlands has been
     adjusted to include the excess value above the technical provisions,
     calculated according to the local regulatory liability adequacy test,
     as of Q2 2009. The comparable IGD ratio as per end of Q1 2009 would
     have been 193%.

  c) Excluding institutional guaranteed products


  Last year, AEGON set out three long-term strategic priorities:

  1. To reallocate capital toward businesses with higher growth and return
     prospects;

  2. To improve growth and returns from existing businesses;

  3. To manage AEGON as an international company.




Subsequently, AEGON identified and announced three priorities to counter the challenges of the current global financial crisis and position the company for future growth:

  - Focus on capital preservation and accelerate the capital release
    program;
  - EUR 150 million in cost saving measures for 2009;
  - Develop contingency plans for possible deterioration in financial
    markets.




AEGON further aims to reduce its earnings sensitivity to financial markets to realize more stable earnings.

Portfolio review

AEGON is continuing to review its portfolio of businesses to ensure they meet the criteria outlined in the company's strategy. Recent developments:

  - Sale of life business in Taiwan, decreasing AEGON's long-term interest
    rate exposure and substantially lowering required economic capital;
  - Withdrawal from Group Risk market in the UK,
    releasing EUR 55 million in capital over next three years.




Consistent with its strategy to allocate capital to businesses and geographies that offer attractive growth and higher return prospects, AEGON completed its acquisition of a 50% stake in Mongeral, Brazil's sixth largest independent life insurer, and the acquisition of Banca Transilvania's 50% share in BT AEGON, a Romanian pension business the two companies set up in 2008.

  Cost measures
  - Cost saving measures well on track to achieve the full-year EUR150
    million target;
  - Operating expenses down 5% in the first half of 2009, excluding impact
    from restructuring charges, increased employee benefit plan expenses
    and currency effects.



  Capital preservation
  - A total of EUR 1.6 billion in capital released from AEGON's businesses
    in H1, above target of EUR 1.5 billion for full year;
  - AEGON started to invest cash in higher yielding quality assets, which
    will in part reverse earnings impact from de-risking measures;
  - AEGON aims to maintain an amount of excess capital substantially above
    AA capital adequacy requirements.


  Capital management

  Excess capital

  - Excess capital at the end of June 2009 totaled EUR 3.5 billion over AA
    capital adequacy requirements, up EUR 0.8 billion from the end of Q1
    2009;
  - The positive impact from improved capital markets, the company's
    capital release program and statutory earnings were partly offset by
    impairments and rating migration in the Americas. At the end of Q2
    2009, AEGON had an IGD solvency ratio of 202%;
  - Because of uncertain economic conditions, AEGON still expects an
    elevated level of asset impairments in its investment portfolio in 2009
    compared with its long-term assumptions. Impairments negatively
    impacted the company's capital position in Q2 2009, reducing excess
    capital by approximately EUR 0.3 billion. In addition, rating migration
    in the Americas' asset portfolio was limited to a EUR 0.1 billion
    increase in capital requirements.


  IFRS core capital

  - At the end of June 2009, core capital, excluding the revaluation
    reserves, totaled EUR 15.8 billion, 75% of the total capital base, well
    above AEGON's minimum target of 70%7,8). Core capital, including the
    revaluation reserves, was EUR 10.6 billion, consisting of EUR 7.6
    billion in shareholders' equity and a further EUR 3 billion in
    convertible core capital securities. AEGON's revaluation reserves
    improved by 40% during Q2 2009, or EUR 3.4 billion, to a negative EUR
    5.1 billion.




The improved revaluation reserves were the main driver behind an increase in shareholders' equity. The revaluation reserves improved primarily due to the impact of narrowing credit spreads on bond values.

  Dividend
  - AEGON has not declared an interim dividend to common shareholders for
    2009. The company's dividend policy, however, remains unchanged, i.e.
    the payment of a dividend depends on the capital position and cash
    flows of the company. A decision on a final dividend will be announced
    with the Q4 2009 results.


  Risk management

  Equity market sensitivities

  - During Q2 2009, AEGON implemented a macro hedge program for equity
    exposure related to its retail variable annuity portfolio to reduce the
    sensitivity of AEGON's capital position to equity market movements.
    This program, a combination of out-of-the-money put options and linear
    hedge instruments, is in place for twelve months, but can be extended
    for a longer period. The hedge instruments will be carried at fair
    value through profit or loss and will be reported under fair value
    items.


  FINANCIAL OVERVIEW

  EUR millions                     Q2    2009   Q1 2009  % Q2 2008
  Underlying earnings before
  tax by line of business
  Life and protection             266     239      11      252
  Individual savings and
  retirement products              62    (313)    N.M.     115
  Pensions and asset
  management                       83      42      98      129
  Institutional products           29      89     (67)      99
  Life reinsurance                 13     (23)    N.M.       -
  Distribution                      1       6     (83)       8
  General insurance                12      (1)    N.M.      20
  Interest charges and other      (72)    (63)    (14)     (38)
  Share in net results
  of associates                    10       2     N.M.      11
  Underlying earnings before tax  404     (22)    N.M.     596
  Over/(under) performance
  of fair value items             (31)   (197)     84       48
  Operating earnings before tax   373    (219)    N.M.     644
  Operating earnings before
  tax by line of business
  Life and protection            270      179      51      264
  Individual savings and
  retirement products             88     (306)    N.M.     139
  Pensions and asset management   35     (135)    N.M.      97
  Institutional products         131       13     N.M.     155
  Life reinsurance                61       59       3        3
  Distribution                     1        6     (83)       8
  General insurance               12       (1)    N.M.      20
  Interest charges and other    (235)     (36)    N.M.     (53)
  Share in net results
  of associates                   10        2     N.M.      11
  Operating earnings before tax  373     (219)    N.M.     644
  Gains/(losses) on investments   35      173     (80)    (212)
  Impairment charges            (393)    (386)     (2)     (98)
  Other income/(charges)        (353)     (23)    N.M.       9
  Income before tax             (338)    (455)     26      343
  Income tax                     177      282     (37)     (67)
  Net income                    (161)    (173)      7      276
  Net underlying earnings        357      (14)    N.M.     437
  Net operating earnings         331     (163)    N.M.     479
  Underlying earnings
  geographically
  Americas                       280      (68)    N.M.    441
  The Netherlands                129       72      79     116
  United Kingdom                  20        7     186      48
  Other countries                 47       30      57      29
  Holding and other              (72)     (63)    (14)    (38)
  Underlying earnings
  before tax                     404      (22)    N.M.    596

  Operating earnings
  geographically
  Americas                       461     (100)    N.M.    541
  The Netherlands                 76     (118)    N.M.     79
  United Kingdom                  22        4     N.M.     48
  Other countries                 49       31      58      29
  Holding and other             (235)     (36)    N.M.    (53)
  Operating earnings
  before tax                     373     (219)    N.M.    644
  Commissions and expenses     1,504    1,618      (7)  1,515
  of which operating
  expenses                       814      842      (3)    772

  - TABLE CONTINUED -

                                                         Ytd     Ytd
  EUR millions                                      %    2009    2008     %
  Underlying earnings before
  tax by line of business
  Life and protection                               6     505    504      -
  Individual savings and retirement products      (46)   (251)   231   N.M.
  Pensions and asset management                   (36)    125    250   (50)
  Institutional products                          (71)    118    207   (43)
  Life reinsurance                                N.M.    (10)    43   N.M.
  Distribution                                    (88)      7     17   (59)
  General insurance                               (40)     11     37   (70)
  Interest charges and other                      (89)   (135)   (55) (145)
  Share in net results of associates               (9)     12     20   (40)
  Underlying earnings before tax                  (32)    382  1,254   (70)
  Over/(under) performance of fair value items   (165)   (228)  (393)   42
  Operating earnings before tax                   (42)    154    861   (82)

  Operating earnings before tax
  by line of business
  Life and protection                               2     449    477   (6)
  Individual savings and retirement products      (37)   (218)    81  N.M.
  Pensions and asset management                   (64)   (100)    78  N.M.
  Institutional products                          (15)    144    100   44
  Life reinsurance                                N.M.    120     34  N.M.
  Distribution                                    (88)      7     17  (59)
  General insurance                               (40)     11     37  (70)
  Interest charges and other                      N.M.   (271)    17  N.M.
  Share in net results of associates               (9)     12     20  (40)
  Operating earnings before tax                   (42)    154    861  (82)
  Gains/(losses) on investments                   N.M.    208   (126) N.M.
  Impairment charges                              N.M.   (779)  (130) N.M.
  Other income/(charges)                          N.M.   (376)   (45) N.M.
  Income before tax                               N.M.   (793)   560  N.M.
  Income tax                                      N.M.    459   (131) N.M.
  Net income                                      N.M.   (334)   429  N.M.
  Net underlying earnings                         (18)    343    940  (64)
  Net operating earnings                          (31)    168    654  (74)
  Underlying earnings geographically
  Americas                                        (37)    212    919  (77)
  The Netherlands                                  11     201    229  (12)
  United Kingdom                                  (58)     27     93  (71)
  Other countries                                  62      77     68   13
  Holding and other                               (89)   (135)   (55)(145)
  Underlying earnings before tax                  (32)    382  1,254  (70)
  Operating earnings geographically

  Americas                                        (15)    361    645  (44)
  The Netherlands                                  (4)    (42)    38  N.M.
  United Kingdom                                  (54)     26     93  (72)
  Other countries                                  69      80     68   18
  Holding and other                               N.M.   (271)    17  N.M.
  Operating earnings before tax                   (42)    154    861  (82)
  Commissions and expenses                         (1)  3,122  2,931    7
  of which operating expenses                       5   1,656  1,555    6



  Overview



AEGON reported a net loss of EUR 161 million for Q2 2009, including a one- time EUR 385 million loss from the sale of the company's Taiwanese life insurance business. Excluding this one-time loss, net income was EUR 224 million, a strong improvement compared with previous quarters.

Underlying earnings before tax amounted to EUR 404 million, a substantial increase from the first quarter of 2009.

Fair value items contributed a negative EUR 31 million to earnings in Q2 2009, again a strong improvement compared with recent quarters.

Net income during the second quarter of 2009 was negatively impacted by impairment charges of EUR 393 million, associated in part with investments in structured residential mortgage assets in the Americas. Impairments of EUR 330 million in the Americas would have amounted EUR 255 million under US GAAP.

Net income in the second quarter of 2009 also included a tax gain of EUR 228 million related to cross border intercompany reinsurance transactions between Ireland and the United States. This gain was a partial reversal of previous tax charges from these internal transactions during 2008.

Underlying earnings before tax

In Q2 2009, underlying earnings before tax for the company totaled EUR 404 million, a substantial improvement compared with recent quarters. Underlying earnings were impacted by a few exceptional items totaling EUR 36 million. Excluding these exceptional items, underlying earnings would have been EUR 440 million. Underlying earnings were also impacted by de-risking measures in the first half of 2009, which affected earnings by EUR 45 million. The main exceptional items were:

  - US employee benefit plan accounting mismatch of EUR (15) million:
  - Restructuring charges of EUR (18) million;
  - Accelerated amortization of DPAC related to universal life in Canada of
    EUR (23) million;
  - Reserve adjustments of EUR 20 million.




Underlying earnings in the Americas improved significantly compared with Q1 2009 when lower equity markets led to a strengthening in minimum guarantee reserves and accelerated amortization of deferred policy acquisition costs (DPAC).

Compared with Q2 2008 however, earnings from the Americas decreased to USD 371 million, a result of lower investment spreads, reduced fees from lower asset balances, increased employee benefit plan expenses (USD 60 million),

accelerated amortization of DPAC in the Life and Protection line (USD 30 million), and one-time restructuring costs (USD 14 million) related to cost saving initiatives. In Q2 2008, earnings from the Americas had included a one- off reserve strengthening of USD 49 million in the life reinsurance business.

In the Netherlands, underlying earnings totaled EUR 129 million, including a one-time EUR 20 million release of provisions.

Underlying earnings in the United Kingdom, meanwhile, totaled GBP 17 million, lower than Q2 2008, due primarily to the impact of lower equity and corporate bond markets on fund related charges in the pension business.

Underlying earnings from Other countries, which exclude earnings from the Taiwanese life business this quarter, amounted to EUR 47 million, up from EUR 29 million in Q2 2008. Earnings for the second quarter 2008 had included a EUR 6 million underlying loss in Taiwan. The increase in earnings in Other Countries was the result of a strong earnings performance from AEGON's operations in Central & Eastern Europe and the company's bancassurance joint ventures in Spain.

Net income

Net income for the second quarter of 2009 included a total underperformance of fair value items of EUR 31 million. Fair value items primarily include certain (alternative) investment classes, as well as a number of products containing financial guarantees.

In the Americas, fair value items showed an overperformance of USD 240 million, a result primarily of increased market values for credit derivatives, as well as a positive contribution from both total return annuities and the impact of lower implied equity market volatilities on the fair value of GMWB guarantees. The results of AEGON's macro equity hedge program are reported under fair value items and amounted to a gain of USD 26 million in the second quarter 2009. Alternative assets in the Americas, such as real estate partnerships and private equity, however, showed an underperformance.

In Q2 2009, fair value items included a EUR 54 million charge related to fair value movements of guarantees and related hedges in the Netherlands. During the second quarter of 2009, a EUR 186 million gain from higher equity markets, as well as the benefit from lower equity market volatility, were more than offset by losses from the company's program for managing guarantee related interest exposures.

Three bonds issued by AEGON N.V. and their hedge instruments are held at fair value through profit or loss. In previous quarters, the widening of AEGON's credit spread had a positive contribution to earnings. In Q2 2009 however, AEGON's credit spread narrowed substantially, leading to a loss of EUR 163 million.

Gains on investments

Gains on investments during the second quarter of 2009 amounted to EUR 35 million, including gains on economic hedges. These gains were partly offset by losses from the revaluation of direct residential real estate investments in the Netherlands.

Impairment charges

Impairments during the second quarter of 2009 totaled EUR 393 million. This included EUR 123 million relating to subprime mortgage asset backed securities and a further EUR 85 million to residential mortgage backed securities, both in the Americas. The remainder was mainly related to corporate credits in the Americas, the United Kingdom and the Netherlands. Impairments of EUR 330 million in the Americas would have amounted to EUR 255 million under US GAAP.

Tax

Net income in the second quarter of 2009 included a tax gain of EUR 228 million related to cross border intercompany reinsurance transactions between Ireland and the United States. These reinsurance transactions are accounted for at fair value in both tax jurisdictions. While losses in the United States were taxed at 35%, gains in Ireland were taxed at 12.5%. The gain was a partial reversal of previous tax charges on these internal transactions in 2008.

The loss from the sale of AEGON's Taiwanese life activities did not lead to tax relief on earnings for the second quarter of 2009.

Commissions and expenses

Compared with Q1 2009, commissions and expenses decreased by 7% to EUR 1.5 billion. Operating expenses were down 3% to EUR 814 million as a result of cost saving initiatives, partly offset by restructuring charges and higher employee benefit plan expenses. Excluding the impact from restructuring charges, increased employee benefit plan expenses and currencies, operating expenses were down 5% in the first half of 2009 compared with the same period last year.

Compared with Q2 2008, commissions and expenses were down 5% on a constant currency basis. On the same basis, operating expenses were up 1% as an increase in employee benefit plan expenses and restructuring charges offset further cost savings. Operating expenses also increased as a result of acquisitions in Central & Eastern Europe in 2008 and the inclusion of new joint ventures in Spain.

  Sales

  EUR millions                         Q2 2009   Q1 2009    %  Q2 2008
  New life sales
  Life single premiums                  1,504     2,025   (26)   2,880
  Life recurring premiums annualized      318       341    (7)     441
  Total recurring plus 1/10 single        469       543   (14)     729
  New premium production accident
  and health insurance                    146       164   (11)     141
  New premium production
  general insurance                        11        12    (8)      16
  Gross deposits (on and off balance)
  by line of business
  Fixed annuities                         928     1,628   (43)     875
  Variable annuities                      949       714    33      717
  Saving deposits                         779       580    34      688
  Retail mutual funds                     671       642     5      908
  Pensions and asset management         2,319     2,829   (18)   2,461
  Institutional guaranteed products     1,115     1,848   (40)   3,481
  Life reinsurance                          1         -   N.M.       1
  Total gross deposits                  6,762     8,241   (18)   9,131
  Total gross deposits excl.
  institutional guaranteed products     5,647     6,393   (12)   5,650

  Net deposits (on and off balance)
  by line of business
  Fixed annuities                         145       688   (79)     (24)
  Variable annuities                      412        78   N.M.    (102)
  Saving deposits                          43       (67)  N.M.     114
  Retail mutual funds                      23       (98)  N.M.     416
  Pensions and asset management           246       506   (51)     180
  Institutional guaranteed products    (1,432)   (2,354)   39      401
  Life reinsurance                        (12)      (16)   25      (14)
  Total net deposits                     (575)   (1,263)   54      971
  Total net deposits excl.
  institutional guaranteed products       857     1,091   (21)     570

  - TABLE CONTINUED -

                                     Ytd       Ytd
  EUR millions               %       2009      2008      %
  New life sales
  Life single premiums     (48)      3,529     5,637   (37)
  Life recurring
  premiums annualized      (28)        659       851   (23)
  Total recurring
  plus 1/10 single         (36)      1,012     1,415   (28)
  New premium production
  accident and health
  insurance                  4         310       307     1
  New premium
  production general
  insurance                (31)         23        32   (28)

  Gross deposits
  (on and off balance)
  by line of business
  Fixed annuities            6       2,556     1,181   116
  Variable annuities        32       1,663     1,402    19
  Saving deposits           13       1,359     1,336     2
  Retail mutual funds      (26)      1,313     1,472   (11)
  Pensions and asset
  management                (6)      5,148     5,644    (9)
  Institutional
  guaranteed products      (68)      2,963     6,730   (56)
  Life reinsurance           -           1         2   (50)
  Total gross deposits     (26)     15,003    17,767   (16)
  Total gross deposits
  excl. institutional
  guaranteed products        -      12,040    11,037     9
  Net deposits (on and
  off balance) by line
  of business
  Fixed annuities          N.M.        833      (819)  N.M.
  Variable annuities       N.M.        490      (254)  N.M.
  Saving deposits          (62)        (24)       42   N.M.
  Retail mutual funds      (94)        (75)      587   N.M.
  Pensions and asset
  management                37         752     1,350   (44)
  Institutional
  guaranteed products      N.M.     (3,786)     (794)  N.M.
  Life reinsurance          14         (28)      (29)    3
  Total net deposits       N.M.     (1,838)       83   N.M.
  Total net deposits

  excl. institutional
  guaranteed products       50       1,948       877   122


  REVENUE GENERATING INVESTMENTS
                                                June 30,  Mar.  31,
                                                  2009      2009     %
  Revenue generating investments (total)        341,815   334,280     2
  Investments general account                   131,533   133,130    (1)
  Investments for account of policyholders      112,107   103,312     9
  Off balance sheet investments third parties    98,175    97,838     -


  Sales



Total new life sales in Q2 2009, excluding Taiwan, were down 13% compared with Q1 2009.

Total new life sales in the Americas were in line with Q1 2009. Retail life sales increased 7% from Q1 2009 reflecting expanded distribution, particularly in the term life insurance market, offset by lower sales of both BOLI/COLI and life reinsurance.

In the Netherlands, pension sales slowed significantly during the second quarter of 2009 and proved volatile after the standstill in the group pension market during the third and fourth quarters of last year. The first quarter of 2009 had seen strong group pension sales.

New life sales in the United Kingdom in the second quarter of the year were down 16% compared with Q1 2009, due primarily to a decline in sales of annuities.

In Other countries new life sales, excluding Taiwan, increased by 9% compared with Q1 2009. New life sales in Spain rose to EUR 24 million, a reflection of higher sales at AEGON's bancassurance joint ventures. Sales through Caja de Ahorros del Mediterraneo (CAM), AEGON's largest bank partner in Spain, remained strong at EUR 57 million (on a 100% basis) in Q2 2009. It should be noted that CAM is an associate of AEGON and its results are therefore not consolidated.

In Central & Eastern Europe, new life sales totaled EUR 18 million, up 13% compared with Q1 2009, due to higher recurring premium sales.

With the exception of Spain, all country units showed a decline in sales compared with Q2 2008. In Other countries, sales were down year-on-year primarily as a result of the sale of AEGON's Taiwanese life business and lower unit-linked sales in Central & Eastern Europe. Sales were also affected by a decline in certain parts of the retail market in the Americas, as well as lower life reinsurance sales and the impact of the financial crisis on sales of BOLI/COLI contracts. In the United Kingdom, sales declined year-on-year across most lines of business. Q2 2008 had been a record sales quarter in the United Kingdom. Sales in the Netherlands were also down year-on-year, primarily because of a slowdown in the Dutch group pension market and lower demand for unit-linked products, as well as lower annuity sales due to conservative pricing.

Deposits

Total gross deposits of EUR 5.6 billion in Q2 2009, both on and off balance, excluding institutional guaranteed products, were down 12% compared

with Q1 2009. The decline was due mainly to lower fixed annuity deposits in the Americas - the result of a reduction in AEGON's crediting rates since the end of Q1 2009. Pension deposits in the Americas remained strong, but were down compared with the previous quarter, a reflection of seasonal factors. Sales of variable annuities were up by 33% compared with Q1 2009 due to improved markets.

Gross deposits in Other countries amounted to EUR 653 million, down from the previous quarter as a result of a decline in sales from AEGON's asset management joint venture in China. Gross deposits in Central & Eastern Europe were up 7% compared with Q1 2009. Despite an adverse economic environment, pension deposits remained strong, reflecting the overall growth of the business. In Q2 2009, deposits in Other countries also included sales of European variable annuities, amounting to EUR 162 million.

Net deposits, excluding institutional guaranteed products, totaled EUR 0.9 billion, an increase compared with Q2 2008, but a decrease compared with Q1 2009. Compared with the first quarter of 2009, net inflows in fixed annuities and the pension and asset management business in the Americas declined. The variable annuities and mutual fund businesses both saw strong sales and lower outflows, leading to net inflows during Q2 2009. Net deposits in Other countries declined compared with Q1 2009, primarily as a result of outflows from AEGON's Chinese asset management joint venture.

Value of new business

Value of new business (VNB) amounted to EUR 181 million in the Q2 2009. Declines in VNB compared with Q1 2009 in the Americas, the United Kingdom and Central & Eastern Europe were partly offset by increases in the Netherlands and Spain. AEGON's internal rate of return amounted to 21.9%, higher than Q1 2009, a result of improved returns in most country units, and a change in the geographical mix of new business.

  FINANCIAL OVERVIEW, Q2 2009 GEOGRAPHICALLY

               United
  Americas     Kingdom                                         The
    USD         GBP                                Americas  Netherlands

                        Underlying earnings
                        before tax by line of
                        business
  217          11       Life and protection        159         75
                        Individual savings and
   79           -       retirement products         66        (10)
                        Pensions and asset
   17           8       management                  13          57
   41           -       Institutional products      29           -
   17           -       Life reinsurance            13           -
    -          (2)      Distribution                 -           3
    -           -       General insurance            -           4
                        Interest charges and other
                        Share in net results of
    -           -       associates                   -           -
                        Underlying earnings before
  371          17       tax                        280         129
                        Over/(under) performance
  240           2       of fair value items        181        (53)
                        Operating earnings

  611          19       before tax                 461          76
                        Operating earnings before
                        tax by line of business    228          11
                        Life and protection        167          71
  110           -       Individual savings and
                        retirement products         90        (10)
   15          10       Pensions and asset
                        management                  12           8
  174           -       Institutional products     131           -
   84           -       Life reinsurance            61           -
    -          (2)      Distribution                 -           3
    -           -       General insurance            -           4
                        Interest charges and other
                        Share in net results of
    -           -       associates                   -           -
                        Operating earnings before
  611          19       tax                        461          76
   (4)         25       Gains/(losses) on
                        investments                 (3)        (42)
 (449)        (31)      Impairment charges        (330)        (28)
    -          30       Other income/(charges)      (1)          -
  158          43       Income before tax          127           6
  214         (25)      Income tax                 155         (2)
  372          18       Net income                 282           4
  343          21       Net underlying earnings    259          93
  505          22       Net operating earnings     380          54


   - TABLE CONTINUED -


                                                         Holding,
                                                          other
                                       United  Other     activities & Total
                                       Kingdom countries eliminations   EUR

  Underlying earnings
  before tax by line
  of business
  Life and protection                    14       18        -         266
  Individual savings and
  retirement products                     -        6        -          62
  Pensions and asset management           8        5        -          83
  Institutional products                  -        -        -          29
  Life reinsurance                        -        -        -          13
  Distribution                           (2)       -        -           1
  General insurance                       -        8        -          12
  Interest charges and other                              (72)        (72)
  Share in net results of associates      -       10        -          10
  Underlying earnings before tax         20       47      (72)        404
  Over/(under) performance of
  fair value items                        2        2     (163)        (31)
  Operating earnings before tax          22       49     (235)       373
  Operating earnings before tax
  by line of business
  Life and protection                    14       18        -         270
  Individual savings and
  retirement products                     -        8        -          88
  Pensions and asset management          10        5        -          35
  Institutional products                  -        -        -         131

  Life reinsurance                        -        -        -          61
  Distribution                           (2)       -        -           1
  General insurance                       -        8        -          12
  Interest charges and other                             (235)       (235)
  Share in net results of associates      -       10        -          10
  Operating earnings before tax          22       49     (235)        373
  Gains/(losses) on investments          28        2       50          35
  Impairment charges                    (35)       -        -        (393)
  Other income/(charges)                 33     (385)       -        (353)
  Income before tax                      48     (334)    (185)       (338)
  Income tax                            (28)      (9)      61         177
  Net income                             20     (343)    (124)       (161)
  Net underlying earnings                24       38      (57)        357
  Net operating earnings                 25       40     (168)        331


  - Underlying earnings before tax of USD 371 million, a substantial
    improvement on recent quarters
  - Net income includes USD 240 million contribution from fair value items
    driven by tightening credit spreads and lower equity market
    volatilities
  - Impairments of USD 449 million, primarily on mortgage-backed assets and
    corporate bonds
  - Retail life sales up compared to Q1 2009; net deposits of USD 1.0
    billion (excluding institutional guaranteed products)



  Overview



Earnings from the Americas in Q2 2009 were up significantly compared to Q1 2009 as financial markets improved during the quarter. Compared with last year however, earnings from the Americas decreased to USD 371 million, mainly due to lower investment spreads, reduced fees from lower asset balances, increased employee benefit plan expenses (USD 60 million), accelerated amortization of DPAC in the Life and Protection line (USD 30 million), and one-time restructuring costs (USD 14 million) related to cost savings initiatives. In Q2 2008, earnings from the Americas had included a one-off reserve strengthening of USD 49 million in the life reinsurance business.

Net impairments amounted to USD 449 million, of which USD 284 million was related to structured residential mortgage asset impairments. Impairments would have amounted to USD 340 million under US GAAP.

Net income also included a tax gain related to cross border intercompany reinsurance transactions between Ireland and the United States (USD 305 million).

Retail life sales increased 7% over Q1 2009 reflecting expanded distribution, particularly in the term life insurance market.

Underlying earnings before tax

AEGON reported underlying earnings before tax in the Americas for Q2 2009 of USD 371 million, a strong improvement compared to an underlying loss of USD 88 million in Q1 2009. However, underlying earnings declined compared to Q2 2008;

Earnings from Life & Protection amounted to USD 217 million and included several one-off items; USD 30 million DPAC charge in the Canadian life

business, USD 18 million in reserve strengthening in the US life business and USD 8 million of restructuring charges, partially offset by USD 21 million of reserve releases in accident and health. Earnings also include USD 33 million in increased employee benefit plan expenses and the impact of lower investment spreads and reduced fee income;

  - Individual Savings & Retirement earnings totaled USD 79 million. The
    decline in earnings compared to Q2 2008 was the result primarily of
    lower fee income in the variable annuity and mutual fund business, as
    well as a narrowing of spreads. Earnings in Q2 2009 included USD 10
    million from increased employee benefit plan expenses;
  - Pensions & Asset Management earnings decreased to USD 17 million from
    USD 50 million in Q2 2008, a result mainly of lower fees from reduced
    asset balances and increased employee benefit plan expenses (USD 10
    million);
  - Earnings from the Institutional business amounted to USD 41 million,
    down from USD 155 million in Q2 2008. Earnings last year had benefited
    from a widening in spreads due to a decline in short-term rates. In Q2
    2009, earnings were severely impacted by narrowing in spreads as a
    result of a higher asset allocation to cash following the decision to
    scale down AEGON's institutional spread business;
  - In the Life Reinsurance business underlying earnings amounted to USD 17
    million. Earnings in Q2 2008 included a USD 49 million reserve
    strengthening charge. Earnings in Q2 2009 were affected by adverse
    mortality experience (USD 10 million), as well as lower investment
    spreads.


  Net income

  AEGON reported net income in the Americas for Q2 2009 of USD 372 million.



Fair value items showed an overperformance of USD 240 million, a result primarily of increased market values for credit derivatives, as well as a positive contribution from total return annuities and the positive impact of lower implied equity market volatilities on the fair value of GMWB guarantees and GMWB related hedges. The gain from AEGON's macro equity hedge program amounted to USD 26 million in the second quarter of 2009. Alternative assets, like real estate partnerships, as well as private equity, underperformed.

Net income in the Americas included USD 449 million in net impairments, of which the majority (USD 284 million) was related to structured asset impairments, including securities backed by subprime mortgages (USD 169 million). Impairments would have amounted to USD 340 million under US GAAP.

Net income included a tax gain related to cross border intercompany reinsurance transactions (USD 305 million) between Ireland and the United States. These reinsurance transactions were accounted for at fair value in both tax jurisdictions, while losses in the United States were taxed at 35% and gains in Ireland were taxed at 12.5%. The gain was a partial reversal of previous tax charges on these internal transactions in 2008.

Commissions and expenses

Total commissions and expenses were down 5% in Q2 2009 compared to the same period last year. Q2 2009 operating expenses were up 4% due to an increase in employee benefit plan expenses of USD 60 million as well as restructuring expenses of USD 14 million.

Sales and deposits

Total new life sales in the Americas were in line with Q1 2009. Retail life sales increased 7% over Q1 2009 reflecting expanded distribution, particularly in the term life insurance market, offset by lower sales of both BOLI/COLI and life reinsurance.

Sales of accident and health products were down 10% compared with Q2 2008, the result partly of a decision to discontinue the auto credit business.

Total gross deposits, excluding institutional guaranteed products, were down 14% compared to Q1 2009. Net deposits, excluding institutional guaranteed products, totaled USD 1.0 billion in Q2 2009.

Following the reduction in AEGON's crediting rates since the end of Q1 2009, fixed annuities sales were down, in line with expectations. Sales of variable annuities rose by 37% due to improved market conditions. Retail mutual fund sales recovered from the low levels seen during the previous quarters, a result of higher equity markets.

Sales of retirement plans in the pension business continued to be strong, particularly taking into account the impact of lower financial markets. Institutional guaranteed products sales were low, following AEGON's decision early 2009 to scale down its institutional spread based business.

Value of new business

Value of new business in the Americas amounted to USD 90 million, down from Q1 2009. The internal rate of return (IRR) was 11.1%, an improvement compared to Q1 2009. The decline in VNB is primarily the result of lower fixed annuity sales, offset by higher volumes and a more profitable product mix in the retail life business.

  Please refer to page 30 for more detailed information on VNB.

  Revenue-generating investments



AEGON's total revenue-generating investments in the Americas at the end of June 2009 totaled USD 295 billion, up 6% from three months earlier.

  AMERICAS - EARNINGS

  USD millions              Q2    Q1    %    Q2    %   Ytd   Ytd    %
                          2009  2009       2008       2009  2008

  Underlying earnings before tax by
   line of business
   Life                    118   153 (23)   214 (45)   271   373 (27)
   Accident and health      99    68   46    94    5   167   209 (20)
  Life and protection      217   221  (2)   308 (30)   438   582 (25)
   Fixed annuities          60    86 (30)   105 (43)   146   200 (27)
   Variable annuities       29 (480) N.M.    68 (57) (451)   138 N.M.
   Retail mutual funds    (10)   (9) (11)     3 N.M.  (19)     7 N.M.
  Individual savings and
   retirement products      79 (403) N.M.   176 (55) (324)   345 N.M.
  Pensions and asset
   Management               17    10   70    50 (66)    27    95 (72)
  Institutional
   guaranteed products      30   105 (71)   141 (79)   135   282 (52)
   BOLI/COLI                11    12  (8)    14 (21)    23    35 (34)

  Institutional products    41   117 (65)   155 (74)   158   317 (50)
  Life reinsurance          17  (30) N.M.     1 N.M.  (13)    66 N.M.
  Share in net results of
   Associates                -   (3) N.M.     1 N.M.   (3)     2 N.M.
  Underlying earnings
   before tax              371  (88) N.M.   691 (46)   283 1,407 (80)
  Over/(under)
   performance of fair
   value items             240  (42) N.M.   141   70   198 (419) N.M.
  Operating earnings
   before tax              611 (130) N.M.   832 (27)   481   988 (51)
  Operating earnings before
   tax by line of business
   Life                    132   120   10   232 (43)   252   367 (31)
   Accident and health      96    56   71    98  (2)   152   207 (27)
  Life and protection      228   176   30   330 (31)   404   574 (30)
   Fixed annuities          81    41   98   133 (39)   122   141 (13)
   Variable annuities       39 (426) N.M.    69 (43) (387)  (34) N.M.
   Retail mutual funds    (10)   (9) (11)     3 N.M.  (19)     7 N.M.
  Individual savings and
   retirement products     110 (394) N.M.   205 (46) (284)   114 N.M.
  Pensions and asset
   Management               15   (3) N.M.    54 (72)    12    92 (87)
  Institutional            166     8 N.M.   218 (24)   174   119   46
   guaranteed products
   BOLI/COLI                 8    10 (20)    17 (53)    18    34 (47)
  Institutional products   174    18 N.M.   235 (26)   192   153   25
  Life reinsurance          84    76   11     7 N.M.   160    53 N.M.
  Share in net results of
   Associates                -   (3) N.M.     1 N.M.   (3)     2 N.M.
  Operating earnings
   before tax              611 (130) N.M.   832 (27)   481   988 (51)

  Gains/(losses) on
  Investments              (4)    36 N.M.  (73)   95    32 (144) N.M.
  Impairment charges     (449) (370) (21) (126) N.M. (819) (147) N.M.
  Other income/(charges)     -     1 N.M.     - N.M.     1     - N.M.
  Income before tax        158 (463) N.M.   633 (75) (305)   697 N.M.
  Income tax               214   290 (26) (179) N.M.   504 (282) N.M.
  Net income               372 (173) N.M.   454 (18)   199   415 (52)

  Net underlying earnings  343  (57) N.M.   502 (32)   286 1,024 (72)
  Net operating earnings   505  (90) N.M.   616 (18)   415   727 (43)

  Commissions and        1,262 1,311  (4) 1,328  (5) 2,573 2,497    3
   Expenses of which
   operating expenses      577   562    3   555    4 1,139 1,102    3

  For the amounts in euro see the Financial Supplement.



  AMERICAS - SALES

  USD millions   Q2 2009 Q1 2009   %     Q2    %     Ytd     Ytd    %
                                        2008         2009    2008

  New life sales
  Life single
   premiums          138     91   52    218  (37)    229     459 (50)

  Life recurring
   premiums
   annualized        170    173  (2)    240  (29)    343     478 (28)
  Total recurring
   plus 1/10
   single            184    182    1    262  (30)    366     524 (30)

  Life               137    128    7    184  (26)    265     371 (29)
  BOLI/COLI            -      2 N.M.      6  N.M.      2      20 (90)
  Life
   Reinsurance        47     52 (10)     72  (35)     99     133 (26)
  Total recurring
   plus 1/10
   single            184    182    1    262  (30)    366     524 (30)

  New premium
   production
   accident and health
   insurance         193    203  (5)    215   (10)   396     452 (12)

  Gross deposits (on and off
   balance) by line of business
  Fixed annuities  1,292  2,120 (39)  1,349    (4) 3,412   1,808  89
  Variable
   annuities       1,071    780   37  1,047     2  1,851   2,021  (8)
  Retail mutual
   Funds             513    307   67    886   (42)   820   1,659 (51)
  Pensions and
   asset
   management      2,623  3,169 (17)  3,130   (16) 5,792   7,382 (22)
  Institutional
   guaranteed
   products        1,548  2,407 (36)  5,433   (72) 3,955  10,303 (62)
  Life
   Reinsurance         1      - N.M.      1     -      1       3 (67)
  Total gross      7,048  8,783 (20) 11,846   (41)15,831  23,176 (32)
   deposits
  Total gross
   deposits
   excl. institutional
   guaranteed
   products        5,500 6,376  (14)  6,413   (14)11,876  12,873  (8)

  Net deposits (on and off
   balance) by line of business
  Fixed annuities    216   896  (76)   (62)   N.M. 1,112 (1,254) N.M.
  Variable
   annuities         353  (40)  N.M.  (228)   N.M.   313   (507) N.M.
  Retail mutual
   funds             104 (256)  N.M.    474   (78) (152)     721 N.M.
  Pensions and
   asset
   management        331 1,053  (69)    489   (32) 1,384   2,133 (35)
  Institutional
   guaranteed
   products      (1,989)(3,065)   35    576   N.M.(5,054) (1,216) N.M.
  Life
   reinsurance      (18)   (20)   10   (21)     14   (38)    (44) 14
  Total net      (1,003)(1,432)   30  1,228   N.M.(2,435)   (167) N.M.
  deposits

  Total net deposits
   excl. institutional
   guaranteed
   products          986 1,633  (40)    652    51  2,619   1,049 150


  REVENUE GENERATING INVESTMENTS

                             June    Mar.
                              30,     31,
                             2009    2009    %
  Revenue
  generating
  investments
  (total)                 295,325 279,399    6
  Investments
   general account        123,131 117,934    4
  Investments for
   account of
   policyholders           62,000  55,791   11

  Off balance
   sheet
   investments
   third parties          110,194 105,674    4


  For the amounts in euro see the Financial Supplement.

  - Underlying earnings before tax increase to EUR 129 million
  - Life sales of EUR 32 million; decline from Q1 due to volatility in
    group pension market
  - Value of new business rises to EUR 36 million, a result of high margins
    on mortgage sales


  Overview



AEGON reported underlying earnings of EUR 129 million in the Netherlands in Q2 2009. Earnings in Q2 2009 included a one-time EUR 20 million release of provisions.

Fair value items underperformed long-term expectations. Impairments, primarily on bonds, totaled EUR 28 million, while investment losses, largely due to the revaluation of investments in residential real estate in the Netherlands, amounted to EUR 42 million.

  Underlying earnings before tax

  - Earnings from Life & Protection amounted to EUR 75 million, up from Q2
    2008 primarily because of a EUR 20 million one-time release of
    provisions and higher investment income in the Life business;
  - The Savings business reported a loss of EUR 10 million, due to
    continued pressure on margins and volumes from fierce competition in
    the savings market;
  - Earnings from Pensions & Asset Management amounted to EUR 57 million,
    slightly down from earnings in Q2 2008, which had included a one-time
    release of accruals. Technical results improved compared to Q2 2008,
    but lower asset balances resulted in lower fee income;

  - Earnings from Distribution amounted to EUR 3 million, down from Q2 2008
    because of a slowdown in the real estate market;
  - General insurance earnings totaled EUR 4 million, lower than Q2 2008
    due to higher claims.


  Net income



Fair value items in Q2 2009 included a EUR 54 million charge from the net impact of movements in the fair value of guarantees and related hedges. The significant benefits of higher equity markets and lower equity market volatility were more than offset by losses from the company's program for managing guarantee-related interest exposures.

Impairments of EUR 28 million were related primarily to corporate credit investments. Net losses on investments in Q2 2009 amounted to EUR 42 million, mainly the result of a revaluation of direct residential real estate investments (EUR 29 million). AEGON has a direct real estate portfolio of EUR 2.1 billion, mainly invested in residential housing in the Netherlands.

Commissions and expenses

Commissions and expenses were down 8%, while operating expenses decreased by 7%, both compared to Q2 2008. Operating expenses were down as a result of cost initiatives taken during the quarter, e.g. a reduction in staff and in project-related expenses.

Sales and deposits

Pension sales slowed significantly during the second quarter of 2009 and proved volatile after the standstill in the Dutch group pension market during the third and fourth quarters of last year. The first quarter of 2009 had seen strong group pension sales. Sales of single premium individual life products were down compared to Q1 2009, following increased pricing competition in the immediate annuity market.

Net mortgage production in the second quarter of 2009 amounted to EUR 537 million. AEGON sells mainly mortgages with a national mortgage guarantee (NHG).

Gross deposits were up 42% compared with Q1 2009. Net deposits in the savings business showed an improvement from the previous quarter, because of seasonal factors.

Value of new business

The value of new business increased to EUR 36 million, while the internal rate of return improved to 29%. The IRR benefited from both high margins and low capital requirements on the mortgage production.

  Please refer to page 30 for more detailed information on VNB.

  Revenue-generating investments



By the end of June 2009, AEGON's revenue-generating investments in the Netherlands increased 4% to EUR 65.8 billion.

  THE NETHERLANDS - EARNINGS

  EUR millions            Q2     Q1    %    Q2    %   Ytd   Ytd     %

                        2009   2009       2008       2009  2008

  Underlying earnings before tax
   by line of business
   Life                   68     44   55    29  134   112    61    84
   Accident and health     7     11 (36)     4   75    18    12    50
  Life and protection     75     55   36    33  127   130    73    78
   Saving products      (10)    (9) (11)     - N.M.  (19)     1  N.M.
  Individual savings
   and retirement
   products             (10)    (9) (11)     - N.M.  (19)     1  N.M.
  Pensions and asset
   management             57     26  119    60  (5)    83   111  (25)
  Distribution             3      9 (67)     8 (63)    12    19  (37)
  General insurance        4    (9) N.M.     9 (56)   (5)    19  N.M.
  Share in net results
   of associates           -      - N.M.     6 N.M.     -     6  N.M.
  Underlying earnings
   before tax            129     72   79   116   11   201   229  (12)
  Over/(under)
   performance of fair
   value items         (53)  (190)   72  (37) (43) (243) (191)  (27)
  Operating earnings
   before tax            76  (118) N.M.    79  (4)  (42)    38  N.M.

  Operating earnings before
   tax by line of business
   Life                   64     18 N.M.    27  137    82    40   105
   Accident and health     7     11 (36)     4   75    18    12    50
  Life and protection     71     29  145    31  129   100    52    92
   Saving products      (10)    (9) (11)     - N.M.  (19)     1  N.M.
  Individual savings
   and retirement
   products             (10)    (9) (11)     - N.M.  (19)     1  N.M.
  Pensions and asset
   Management              8  (138) N.M.    25 (68) (130)  (59) (120)
  Distribution             3      9 (67)     8 (63)    12    19  (37)
  General insurance        4    (9) N.M.     9 (56)   (5)    19  N.M.
  Share in net results
   of associates           -      - N.M.     6 N.M.     -     6  N.M.

  Operating earnings      76  (118) N.M.    79  (4)  (42)    38  N.M.
   before tax
  Gains/(losses) on
   Investments          (42)    110 N.M. (115)   63    68  (39)  N.M.
  Impairment charges    (28)   (78)   64   (4) N.M. (106)  (21)  N.M.
  Income before tax        6   (86) N.M.  (40) N.M.  (80)  (22)  N.M.
  Income tax             (2)     45 N.M.    45 N.M.    43    46   (7)
  Net income               4   (41) N.M.     5 (20)  (37)    24  N.M.

  Net underlying
   Earnings               93     55   69    92    1   148   184  (20)
  Net operating
   Earnings               54   (87) N.M.    64 (16)  (33)    42  N.M.

  Commissions and        274    307 (11)   299  (8)   581   609   (5)
   expenses of which
   operating
   expenses              192    217 (12)   207  (7)   409   426   (4)




  THE NETHERLANDS - SALES

  EUR millions                        Q2 2009   Q1 2009   %   Q2 2008    %

  New life sales
  Life single premiums                  145      391    (63)    443     (67)
  Life recurring premiums annualized     17       23    (26)     24     (29)
  Total recurring plus 1/10 single       32       62    (48)     68     (53)

  Life                                   19       23    (17)     23     (17)
  Pensions                               13       39    (67)     45     (71)
  Total recurring plus 1/10 single       32       62    (48)     68     (53)

  New premium production accident
   and health insurance                   3        7    (57)     3        -
  New premium production
   general insurance                      6        7    (14)     7      (14)

  Gross deposits (on and off balance)
   by line of business
  Saving deposits                       779      580     34     688      13
  Pensions and asset management          62       11    N.M.     80     (23)
  Total gross deposits                  841      591     42     768      10

  Net deposits (on and off balance)
   by line of business
  Saving deposits                       43    (67)      N.M.   114      (62)
  Pensions and asset management        (73)  (113)       35    68       N.M.
  Total net deposits                   (30)  (180)       83   182       N.M.

  - TABLE CONTINUED -

  EUR millions                                    Ytd 2009    Ytd 2008    %

  New life sales
  Life single premiums                                536       888     (40)
  Life recurring premiums annualized                  40        50      (20)
  Total recurring plus 1/10 single                    94       139      (32)

  Life                                                42       54       (22)
  Pensions                                            52       85       (39)
  Total recurring plus 1/10 single                    94      139       (32)

  New premium production accident
   and health insurance                               10        9        11
  New premium production general insurance            13       15       (13)

  Gross deposits (on and off balance)
   by line of business
  Saving deposits                                  1,359    1,336         2
  Pensions and asset management                       73      127       (43)
  Total gross deposits                             1,432    1,463        (2)

  Net deposits (on and off balance)
   by line of business
  Saving deposits                                   (24)       42      N.M.
  Pensions and asset management                    (186)      104      N.M.
  Total net deposits                               (210)      146      N.M.




  REVENUE GENERATING INVESTMENTS

                                                 June 30,  Mar. 31,
                                                   2009      2009       %
  Revenue generating investments (total)          65,772   63,427       4
  Investments general account                     33,907   32,875       3
  Investments for account of policyholders        20,065   19,357       4
  Off balance sheet investments third parties     11,800   11,195       5


  - Underlying earnings before tax of GBP 17 million, down primarily due to
    lower fund related charges in the pension business
  - New life sales decline 16% compared to Q1 2009, driven by annuities
  - VNB down compared to Q1 2009 following change in product mix


DATASOURCE: AEGON N.V.



CONTACT:  Group Corporate Communications & Investor Relations: Media,

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