An introduction to Aegon February 2020 Helping people achieve a lifetime of financial security
Content 3 18 27 An overview of who we International presence Asia are Businesses in more than 20 countries Key facts and figures 5 21 29 Our strategy Americas Aegon Asset Management Helping people achieve a lifetime of financial security 8 23 31 Creating value Europe Aegon’s Management Board Creating a positive impact 2
An overview of who we are What we do Earnings Life insurance, pensions & asset management for almost (Underlying earnings before tax, full year 2019) 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 (Full year 2018) 51% Employees billion 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 <1900 1983: Joining forces >1983 Recent history Executing our customer- Aegon’s roots date Merger of Dutch insurers International expansion to centric strategy to help back to the first half of Ago and Ennia; Aegon over 20 markets in the the 19 th 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 • Increased awareness to save for retirement individual responsibility • Workplace channel increasingly important • Changing customer behavior in researching and purchasing products Increased • New technology creates increased transparency importance of • More effective and efficient ways to advise and serve mass affluent customers digital channels 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 Investments lifetime of 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 Building relationships with respected Established research centers for longevity partners in the field of longevity, retirement and retirement in the Netherlands, the US and health and Brazil 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 - 10
How 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 €861 million paid out to investors to help our • Financial capital customers in dividend and interest payments • Human & intellectual capital achieve a • Social & relationship capital lifetime of financial security €12.5 million spent on training and career development programs €10.1 million invested in local communities 11 *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 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 • By developing innovative new platforms Paid out in policyholder 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 12
How we share value with our employees • By providing worthwhile employment and a Almost 24,000 at December 31, 2019 safe, productive workplace employees • By attracting people with digital and marketing skills 0.9 • By encouraging new ways of working Total employment €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) 13
How we share value with our investors • By growing our business, generating capital of Aegon’s shares are held 78% and paying out dividends to our shareholders by institutional investors • 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 Global 1) strong and stable balance sheet • Through shareholder engagement listings – Euronext 2 Amsterdam & New York stock exchange 14 1) AA- rating applies to Aegon USA and Aegon the Netherlands.
How we share value with wider society Just > • By playing an active role in the communities in of volunteered hours in 2018 by employees which we operate 14,000 to work with local hours – Providing support through community investments communities to vulnerable people of impact investments • By encouraging our employees to add value €8.4 by the end of 2018 in via volunteer work e.g. affordable housing billion 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 15
Taking our responsibility as investor and asset manager As an asset manager we engage € 147 billion General proactively with issuers account Number of companies engaged with 564 Exclusions 1 360 Companies that expand coal-related operations 335 Coal or exceed revenue threshold 2 Tobacco companies Companies that exceed revenue threshold 3 Companies that exceed production threshold 4 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 16 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 3. Threshold is currently 5% of revenues from tobacco production 4. Threshold is currently 30% of total oil equivalent production from oil sands
How 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 partners Invested in start-ups and new technologies, ~$140 • Through our investments in start-ups with 18 separate 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 17
One of the world’s leading financial services companies 18
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