An introduction to Aegon September 2020 Helping people achieve a lifetime of financial security
Content 3 18 24 An overview of who we An integrated, diversified International are financial services group Our international presence Key facts and figures 5 21 25 Our strategy Americas Asset Management Helping people achieve a lifetime of financial security Aegon’s Management 10 22 26 A partner to the world The Netherlands Board Creating long-term value for multiple stakeholders 23 United Kingdom 2
An overview of who we are What we do Earnings Life insurance, pensions & asset management for approximately (Underlying earnings before tax, full year 2019) 29.9 million customers (2019) History 6% Our roots date back more than 175 years 7% 6% Paid out € 59.4 billion in claims, benefits and plan withdrawals EUR 1.97 (Full year 2019) 51% billion Employees Over 23,500 employees 30% (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 <1900 1983: Joining forces >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 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 manage customers’ assets and property and other assets, and stable income in retirement, help them manage their education provide advice on savings and helping to meet costs of care and securing their families’ future. and pension pots. investments. 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 uncertainty - A number of coherent measures • Regulatory focus on financial stability of the industry and - Solidarity between generations • 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 respect to data protection, data - Promotion of healthy lifestyles, privacy and use of data financial literacy, lifelong learning 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 Investments From premiums, deposits and investment In exchange for product and services, benefits returns, we pay customer claims and 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 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
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 10
How 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 €899 million paid out to investors in Solutions development Distribution dividend and interest payments and pricing • €235 billion invested in responsible Financial capital • Human & intellectual capital investment solutions • Social & relationship capital €17 million spent on training and career Claims and Investments benefits development programs €9 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 as of page 13 in Aegon’s 2019 Integrated Annual Report
How we share value with our customers 29.9 Serving individual and group customers globally million (2019) • By serving customers throughout their lives • By providing optimal products and services €59.4 Paid out in policyholder claims, benefits and plan • By being easily accessible online billion withdrawals in 2019 • By developing innovative new platforms • By offering efficient, frictionless customer service Of the business covered in 88% our relational NPS program 12 Source: Aegon’s 2019 Integrated Annual Report
How 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 • By attracting people with digital and marketing skills €2.1 costs in 2019 billion • By encouraging new ways of working Salaries Benefits 1.3 • By embracing diversity of Aegon’s workforce in 2019 49% are women 13 Source: Aegon’s 2019 Integrated Annual Report
How we share value with our business partners Omni- approach towards our customers channel • Helping our business partners to grow alongside us In commissions, fees • Through our joint ventures and strategic partners €6.4 and other payments to intermediaries, • Through our investments in start-ups billion suppliers and reinsurers • By regularly assessing our suppliers against minimum social and environmental standards €1.5 Spent on goods and services in 2019 billion 14
How we share value with our investors of Aegon’s shares are held 78% • By growing our business, generating capital and by institutional investors paying out dividends to our shareholders • By our dedication to meet our long-term financial strength rating by A+ S&P Global 1) commitments to shareholders by delivering sustainable financial results and maintaining a strong and stable balance sheet listings – Euronext • Through shareholder engagement 2 Amsterdam & New York stock exchange 15 1) A+ rating applies to Aegon USA, Aegon the Netherlands and Aegon UK. For more information, please visit our corporate website.
Taking our responsibility as investor and asset manager € 147 billion As an asset manager we engage proactively General 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
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